PepsiCo has developed a new metric, the best measure of value added products Pepsi, than the gross margin, the traditional metric used by retailers to determine shelf space and promotional activities. This new metric, cash flow performance, captured the importance of direct Store-Distribution (DSD), Pepsi-service and the strong pull of its national advertised brands. Pepsi executives believe that their full service distribution service to save customers money and strong brands generate more traffic and sales, but that the majority of retailers, looking only at gross profit, missed this added value. Pepsi managers are struggling to implement a strategy that would convince retailers to performance cash flow as an indicator to decide merchandising in their stores. "Hide
on F. Asis Martinez-Jerez, Lisa Brem Source: Harvard Business School 14 pages. Publication Date: March 28, 2011. Prod. #: 111069-PDF-ENG
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