Priscila RegoP100055851. From the point of view of PepsiCo, what are theadvantages of a contractual channel system over a traditional or administeredchannel system?The advantages that PepsiCo would gainfrom having a contractual, instead of the traditional system is because thereare more levels of cooperation between PepsiCo and the distribution.
Thissystem would give PepsiCo more control over the entire process. The contractualsystem ensures that the contracts in place guarantee fulfillment of productexchange between PepsiCo and the members of the channel system. Otheradvantages for PepsiCo are control, clear process and organization. Includingprotection offered by the law and the binding contracts. These methods inspireloyalty in the distributers thus insuring repeat business and renewal ofcontracts.2.
Why doesn’t PepsiCo acquire thebottler/wholesalers or in some other way take over the wholesale distributionof Pepsi beverage products? PepsiCo doesn’t acquire bottlers orwholesalers because it does not make for sound strategy for PepsiCo. Thedetriment that PepsiCo would experience is that having their headquarters andmanufacturing in one place could cause a logistical nightmare. If PepsiCo hadto do everything in-house it would substantially increase the costs associatedwith distribution and manufacturing of their product. They would not be able tohave any methods of confirmation that their products are reaching thewholesalers in time for their shelf-life to be appropriate for consuming. Allof these are reasons that PepsiCo doesn’t take over the bottler/wholesaleaspect of their product sale.
3. How would you describe the job of a salesperson who worksfor PepsiAmericas, Inc.? What types of activities does this person perform?A salesperson working for PepsiCo isone that has to contend with the objectives given by PepsiCo corporate. PepsiCohas had a ‘push-pull’ strategy that the salesperson is expected to push as manyPepsi products that they can, plus also offering promotions to intermediariesto guarantee the product flows from Pepsi to their wholesalers. The salespersonis responsible for all agreements and the handling of the product along with delivery.They are the storytellers of the company and responsible for reaching/maintainingtheir goals.