The discrepancies in demand and supply, conflicts between channel members, the environmental impact and theft along the way seriously harm the company’s profitability. With Cola Cola entering the market, Pepsi needs to redefine and redesign its supply-chain strategy to meet the challenges faced in the market and sustain its position in the country. These challenges are discussed in detail to provide possible solutions for the company to improve its supply chain and marketing channels in the light of existing literature, theories and models of marketing channels and logistics.