According to the zero-based channel design, all the channel members need to utilize minimum costs to serve the targeted market of the channel manager (Rosenbloom, 2011). The discussion will explain all the necessary elements for meeting the demands for service output. It will also emphasise on the essential elements to fulfil the requirements of the supply side of the channel. The essay will address the potential channel gaps that can hamper the channel performance and therefore, it will offer necessary solutions to it. It will also elaborate the possible conflicts within the channel elements. Therefore, it will suggest the essential strategies to eliminate these conflict issues.
PepsiCo Inc. is a multinational food and beverage company which deals in carbonated soft drinks, packaged drinking water, beverages and snacks foods. The organisation was established in 1986 by Donald Kendall and Herman Lay. The organisation is headquartered in New York, USA. The organisation distributes a range of products across over 200 countries. Their product line includes Diet Pepsi, Mirinda, Aquafina, Mountain Dew, Tropicana, 7 Up, Gatorade, Frito-lay and Fritos. The company has recorded revenue of $66 billion by the end of 2013 (Marketline, 2014). The organisation has segmented their market according to the geographical locations. The areas with higher summer temperature are the major targets of the organisation. They have also divided the market according to the age and lifestyle of the consumers. Though the organisation focuses almost all the section of the market, they prefer to provide more attention towards the middle class population aged between 16-35years (Marketline, 2014).
The organisation mainly follows a three-channel distribution network to supply their products within their targeted market. The three major distribution channels of the organisation are direct store delivery, third party ...Show more