COURSE: Sales Management

COMPANY: PEPSICO- Frito Lay

SUPERVISOR: Mr. Kashif Rasool

CONTACT PERSON: Mr.Talha Wahab

DESIGNATION: Territory Sales Manager

PEPSICO- Frito Lay: THE SNACK CHANNEL

The report is composed and formulated by the Business Administration students

of Institute of Business Management, Ms. Ayesha Mehmood 23192 , Ms.
Aneequa Ali Khan 20559, Mr. Faraz Ahmad 20305 and Ms. Faryal Ali Khan
20618.

This report has been composed with the sole understanding and theoretical
implication taught in our course, Sales Management under the assistance of our
course instructor and facilitator, Mr. Kashif Rasool

We extend our gratitude to Mr. Muhammad Talha Wahab, Territory Sales

Manager, and PEPSICO for providing us with the information of their company
under confidentiality and for conducting and providing his utmost support
needed to compose this report.

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 TABLE OF CONTENTS

Serial# Contents title Page#

1 Industry & Company introduction 3
2 TSM’s profile and JD 4
3 Sales objectives 4
4 Organizational sales structure 4
5 Sales target setting 4
6 Territory Assignments 5
7 Sales monitoring 5
7 Recruitment & selection criteria 5
8 T&D programs 5
9 Compensations and Sales expenses 6
9 Order booker salary & incentives 6
10 Ethical responsibilities of a sales manager 7
11 Gaps & recommendation 7

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Industry and Category Breakdown
The industry Pepsi has Frito-Lay under fast moving consumer goods (FMCG) which particularly
has food and beverages under it. Snacks are of two types, micro snacks and macro snacks. Micro
are those which are small packs and the macro products which are larger packs that include
family packs. Frito-Lay offers both types of snacks that are micro and macro.

Company introduction:
a. PEPSICO

Pepsi is one of the World’s most iconic and recognized consumer brands globally with its
headquarters based in New York. PepsiCo has interests in the manufacturing, marketing, and
distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in
1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. In Pakistan Pepsi is being
franchised by Pakistan Beverages Limited under the umbrella of Pepsi-Cola (PVT) ltd.

b. FRITO-LAY

Frito-Lay snack brands balance the product portfolio, blending 'good fun' with high quality,
great tasting snacks. Its portfolio includes flagship brands - LAY'S® potato chips, the No. 1
snack food brand, and FRITOS® corn chips, a snack fans have enjoyed for more than eight
decades - among many other favorites. Through Frito-Lay, PepsiCo is the largest globally
distributed snack food company, with sales of its products comprising 40 percent of all “savory
snacks” and 30% in the non-U.S. market. The product is manufactured in Lahore and distributed
overall in Pakistan. In Karachi, the north zone of distribution catered by the Rashid Agency.

c. Vision:

To achieve business and financial success while leaving a positive imprint on society –
delivering what we call Performance with Purpose.

d. Mission

To provide consumers around the world with delicious, affordable, convenient and
complementary foods and beverages from wholesome breakfasts to healthy and fun daytime
snacks and beverages to evening treats. We are committed to investing in our people, our
company and the communities where we operate to help position the company for long-term,
sustainable growth.

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TSM’s Profile and Job description
The territory sales manager of Frito-Lay leads a large sales team of about 8 order bookers, the
TSM looks after the Local Modern Trade of Karachi. The primary role of the territory sales
manager is to simply achieve the sales target of the company aided by the category, product and
brand management plans.

To manage the distribution of products and their profitably & make sure they go to higher
growth numbers, the TSM is responsible for ensuring operational excellence in customer
management, customer services, merchandising and even in hygiene standards.

Company’s Sales Objectives

I. Expand in terms of coverage: As we can see that currently Frito-Lay covers 60% of GT
so the objective is to cover most of it.
II. Maintain Business Hygiene: Hygiene is the foremost factor, PepsiCo wants to maintain
transparency in the company.
III. Shelf Share: To make the Chips of Frito-Lay most prominent at every store with the
maximum shelf share.
IV. Building Relationship: To maintain Long term healthy relationship with the distributors
and stores in order to ensure long term profitability and revenue generation.
V. Ensure Growth for Sales Team: To give more incentives and knowledge along with
training to the sales force in order to ensure their growth and learning which would
benefit the company.
VI. Product Mix Innovation: To improve the total number of product lines in order to keep
consumers engaged by continuous innovation in flavors.

Organizational Sales Structure and Organogram

The sales hierarchy followed at PepsiCo for the distribution of Frito-Lay Products has a total of
20 front line officers, it starts with General Manager Sales who supervises Head of Sales. Head
of Sales supervises Zonal Sales Manager. Assistant Sales Manager reports to ZSM and Territory
Managers report to ASM in hierarchy level. Under the Territory Sales Manager come Territory
Sales Officers, Supervisors, Order Bookers and Salesman. The front line officers include the
three levels mentioned in the hierarchy which constitutes a total of 20.

Sales Target Setting

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 I. Market Potential: The size of the market which has potential to sell the snacks of Frito-
Lay. Sales target is done on the basis of market potential which is usually measured by
sales value or volume.
II. Historical Sales: Sales targeting is also done on the basis of historical sales values of
Frito-Lay products in the market.
III. Production: Sales target is set as per the total production of the company, the more the
company produces, the higher the sales target is set.
IV. Festivities: Sales target usually increases at the time of festivities like Eid, Ramadan or
other similar festivals as the demand of chips is high at that time.

Territory Assignments at Frito-Lay

● Geographical Work-Load and Sales Potential
● Breakdown Method for territory design
● Forecasts the sales and then divides it on avg sales per salesperson in each territory.
Salesforce size = Forecasted sales/Avg sales per salesperson

Sales Monitoring:
System made in sales module which is known as EDGE KPIs in which daily coverage, SKU
Per Call, SKU Per Bill and many more KPIs are monitored daily and reports are generated
from the system every day. This report is incorporated in the morning meeting the next day
and performance is discussed. Brand wise and account wise coverage are conveyed every day
and informed on which brands to work. Every brand’s objective is assigned and their current
standing, future forecast, run rate etc are discuss

Recruitment & Selection criteria of Sales Representatives

The recruitment process starts with an online application which is followed by two to three
interviews with drug test, background test, and technical assessments in between. Upon clearing
these, a final interview is conducted.
There is a certain criteria which the company follows to select and manage Sales representatives:
● Strong portfolio of clients
● Attitude towards market
● Professionalism towards business

Sales Training & Development Programs

A short training session takes place every morning where basic sales procedures are revised
including the 8 steps of call. Route to market is also discussed. Furthermore, the targets and
progress of each order booker is discussed. Any different situation that they may have come
across during their sales process is discussed so that solutions to counter such situations can be
derived through group effort. Below are some of the training and development programs that
Pepsi Co provides to their employees/order bookers:

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1. 8 Steps of Call

2. 8 Basic Pillars of Sales:

8 basic pillars are also known as the 8 BUILDING BLOCKS of sales and they include: These are
known as the basic pillars because they cover the business full 360 degrees. DSF (Distribution,
Service, Freshness & Breakage) is the outer boundary. It is the performance standards which can
be quantified. This means that DSF can be analyzed in numbers as we can see below:

1. Distribution 5. Location
2. Service 6. Appearance
3. Freshness and breakage 7. Range
4. Space 8. Promotion

3. On-the-Job Training:

When a new order booker is hired, on the job training takes place. He gets aligned with another order
booker who is more experienced in the company. The new order booker is then trained through working
with an older order booker for a day or two and is explained all the processes and protocols to follow. He
is then taught the 8 steps of call and all other important things and then he is sent to market

4. Off-the-Job Training:

Off the job training activities include seminars, trainers are invited to the distribution, people from the
Head Office of PepsiCo come and do some training and so on.

Compensation and Sales Expenses

Under PepsiCo Frito-Lay’s compensation plan medical care, accommodation, lunch on
field/plant visits, free beverages for employees, pension and retiree medical expenses,
annual incentive compensation, fuel expenses are covered.

Order Booker Salary & Sales Incentive

● Order booker’s salary is cost shared by both company and Distributor.
● 75% of the salary is paid by the Company and 25% by the Distributor.
● Salary is divided into 50% Fixed and 50% Variable

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Ethical Responsibilities of a Sales Manager:
It’s responsibility of a sales manager to take care of following aspects:
Hold regular one-on-one coaching sessions with sales representatives. Review your ethical sales
processes and procedures at team meetings, and lead by personal and professional example.

Put the customers' needs ahead of their own, build customer relationships based on trust and
reliability, give honest and knowledgeable insight to customers, hold themselves accountable for
problems, and provide fair comparisons between your company and its competitors.

Recommendations
1. They should add more training and development programs instead of repeating the same
two- three methods.
2. Customer retention programs required for customers
3. Install tracking system in Order Booker’s bikes. They may misuse the transport
allowance.
4. Division of territories should be done on the basis of more market research on the basis of
psychographics and purchasing behavior.