Rahul Pepsi

8/12/2019 Rahul Pepsi

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PROJECT REPORT

ON

A study on SALES & DISTRIBUTION CHANNEL AND

PROMOTION of PepsiCo with reference to

SMV BEVERAGES JAMSHEDPUR

(FRANCHISEE OF PEPSICO INDIA).

IN

JAMSHEDPUR

Submitted in partial fulfillment of PGDM

Submitted To: Prof. R. Ravi Kishore Submitted By:Nitesh Kumar


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DECLARATION

I NITESH KUMAR hereby declare that the project titled SALES &

DISTRIBUTION AND PROMOTION is an original work carried out under the

guidance of PROF. R. RAVI KISHORE. The report submitted is a bonafide

work of my own efforts and has not been submitted to any institute or

published before.

Name:

Signature:


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Certificate from the organization

TO WHOMESOEVER IT MAY CONCERN

This is to certify that Mr. NITESH KUMAR of PGDM has successfully

completed Summer Training Program for a period of 45 days with S.M.V.

Beverages Pvt. Ltd. JAMSHEDPUR from 28thAPRIL 2012 to 14th JUNE

2012.

As per our assessment he is hard working and his performance has been

good during the training program.

We wish him all the success for his future.

MUKTI RANI

Personnel & Admin. Officer

Date:

Place:


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Faculty Guide Certificate

I Prof. R.RAVI KISHORE certify Mr. NITESH KUMAR that the work doneand the training undertaken by him/her is genuine to the best of my

knowledge and acceptable.

Signature

Date:


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ACKNOWLEDGEMENT

I owe my sincere gratitude towards to Prof. Mir Irfan Ul Haque, Director

Academics of VISHWA VISHWANI SCHOOL OF BUSINESS, Hyderabadand

my faculty guide Prof. R. Ravi Kishorefor extending the support towards the

completion of the project.

Before I get into the thick of the things I would like to add a few heartfelt words

for the people who were part of this project in numerous ways people

who gave unending support right from the stage the project was started,

appreciated and encouraged when being depressed.

In this context I would like to express my gratitude towards my parents

and family members who have constantly supported and played a pivotal role

in shaping my career.

I take this opportunity to express my gratitude to Mr. P.S. Kumar(Director),

Mr. Subroto Chakraborty (T.D.M), Ms. Mukti Rani (Personnel & Admin.

Officer) of S.M.V. Beverages who have given me the opportunity to do the

project in their esteemed organization.

I would also like to thank Mr. Manoj Kumar Singh (A.D.C.) and Mr.

Dhananjay Kumar (ME) of SMV Beverages without whose support this

project couldnt have been in the form in which it is now. I owe more than what

I can mention mostly for teaching me to see the silver lining in every dark

cloud.

MR. NITESH KUMAR

Date:

Place:


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EXECUTIVE SUMMARY

PepsiCo organization initiated this project to assess the market potentiality of

Pepsi in the present market. The main motive of this project is to identify the

potentiality of the Pepsi and their other product those they are producing.

The project methodology involved carrying out the preliminary research to gain

insight into the present market sub segment, current trends, growth, players

and potential. Analyzing the requirement and designing questionnaire. Taking

interviews, conducting retailers interviews of different type of demographic

factors under like age, income, status, Collating & analyzing data and

identifying leads that qualifying for an offering and formulating

recommendation for S.M.V. Beverages, Jamshedpur.

In the findings researchers got that Pepsi company is one of the best soft

drink company , because it maintain the quality, taste and also the

Company is maintain good relationship with retailers and they are also

distributing their product to their retailers when they want and the Company

also provide them in time.

Theory is important, because it enhances our understanding of business

phenomena and helps managers to think about what they should do. Summer

training or internship training program provides opportunities to apply this

theory into the real business practice.

In the present scenario of competitive marketing, every business institution

requires to prepare strategies for efficiently utilizing their available resources

and environmental opportunities. At this stage of my learning process I alsofeel needs for knowing different business strategies that a business

organization follows. In this training period I got opportunities to study on

some marketing strategies of PepsiCo. And in this report I am going to

explain some of those strategies which I had applied in practical during

my summer training program.


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INDEX

Chapter. no. Content Page No.

Chapter 1 Introduction 9-14

Chapter 2 Industry Profile 16-20

Company Profile 21-28

Literature Review 29

Chapter 3 Research methodology 31-41

Chapter 4 Data collection 43-55

Analysis& Interpretation 56-67

Chapter 5 Findings 69

Recommendations 70

Conclusions 71

Bibliography Books/ Articles referred 72

Websites referred

Annexure Questionnaire 74-76


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CHAPTER: -1

INTRODUCTION


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SALES

A sale is the act of selling a product or service in return for money or other

compensation. It is an act of completion of a commercial activity.

The seller or salespersonthe provider of the goods or services completes

a sale in response to an acquisition or to an appropriation, or to a request.

There follows the passing of the title (property of ownership) in the item, and

the application and due settlement of a price, the obligation for which arises

due to the sellers requirement to pass ownership. Ideally, a seller agrees

upon a price at which he willingly parts with ownership of or any claim upon

the item. The purchaser, though a party to the sale, does not execute thesale, only the seller does that. To be precise the sale completes prior to the

payment and gives rise to the obligation of the payment. If the seller

completes the first two above stages (consent and passing ownership) of the

sale prior to settlement of the price, the sale remains valid and gives rise to an

obligation to pay.

DISTRIBUTION CHANNEL

My field of study will look into upon the following aspects of distribution

and selling strategy and market-research.

The main purpose of trade is to supply goods to the consumers living in far off

places. As goods and services move from producer to consumer they

may have to pass through various individuals. The middlemen are

connecting links between producers of goods and consumers. They perform

several functions such as buying, selling, storage, etc. The middlemen

constitute the channels of distribution of goods. Thus, a channel of

distribution is the route or path along which goods move from producers

to ultimate consumers.

The route taken by goods as they move from producer to consumer is

known as Channel of Distribution. From the above diagram it can be found

that there is just one direct channel i.e. from producer to the consumer.


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There are many indirect channels like:

(1) PRODUCER DISTRIBUTOR RETAILER CONSUMER

(2) PRODUCER CONSUMER

(3) PRODUCER DISTRIBUTOR CONSUMER

(1) PRODUCER DISTRIBUTOR STOCKIST

CONSUMER RETAILER

The route normally used by FMCG companies especially by the soft drink

companies is the second one i.e. (ii). In this case the wholesaler is usually

called distributor.

If the producer is producing goods on a large scale, it may not be

possible for him to sell goods directly to consumers. As such, he sells goods

through middlemen. These middlemen may be wholesalers or retailer s. A

wholesaler is a person who buys goods in large quantities from producers;where as a retailer is one who buys goods from wholesalers and

producers and sells to ultimate consumer s as per their requirement. The

involvement of various middlemen in the process of distribution constitute

the indirect channel of distribution. Let us look into some of the

important indirect channels of distribution.

PRODUCER

DISTRIBUTER RETAILER CONSUMER


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DISTRIBUTOR

Distributors are one of the important middlemen in the channel of distribution

who deals with the goods in bulk quantity. They buy goods in bulk from the

producers and sell them in relatively smaller quantities to the retailers. In some

cases they also sell goods directly to the consumers if the quantity to be

purchased is more. They usually deal with a limited variety of items and also in

a specific line of product, like iron and steel, textiles, paper, electrical

appliances, etc. Let us know about the characteristics of distributors.

CHARACTERISTICS OF DISTRIBUTOR

The followings are the characteristics of distributors:

I. Distributors buy goods directly from producers or manufacturers.

II. Distributors buy goods in large quantities and sells in relatively smaller

quantities.

III. They sell different varieties of a particular line of product. For example,

a distributor who deals with soft drinks is expected to keep all varieties

of soft drinks viz. 200ml, 250ml, 300ml, 500ml, 600ml, 1ltr, 1.2ltr, 2ltrglass bottle pet bottles, mineral water, soda etc.

IV. They may employ a number of agents or workers for distribution of

products.

V. Distributors need large amount of capital to be invested in his business.

VI. They generally provide credit facility to retailers.

VII. He also provides financial assistance to the producers or

manufacturers.


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FUNCTIONS OF DISTRIBUTORS

Let us now know what the functions of distributors are.

(a) Collection of goods: A distributor collects goods from manufacturers orproducers in large quantities.

(b) Storage of goods: A distributor collects the goods and stores them

safely in warehouses, till they are sold out. Perishable goods like fruits,

vegetables, etc. are stored in cold storage.

(c) Distribution: A distributor sells goods to different retailers. In this way,

he also performs the function of distribution.

(d) Financing: The distributor provides financial support to producers and

manufacturers by sending money in advance to them. He also sells goods to

the retailer on credit. Thus, at both ends the distributor acts as a financier.

(e) Risk taking: The distributor buys finished goods from the producer and

keeps them in the warehouses till they are sold. Therefore, he assumes the

risks arising out of changes in demand, rise in pr ice, spoilage or destruction of

goods.

Promotion

Promotion is a key ingredient in marketing campaigns consists of a collection

of incentive tools, mostly short term, designed to stimulate quicker or greater

purchase of particular products or services by customers.

AdvertisingPersonnel

selling

Sales

promotionDirect selling Public

relation


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Advertisement

Advertising is a fascinating and important aspect of marketing. Advertising

appeals to all irrespective of age, caste, sex, borders etc. Words which can

be associated with advertising are fun, humor, warm, entertaining,

persuasive, boring, and irritating. Advertising in simpler words is

communication and persuasive and leaves a mark in the mind of the

consumer. I worked on PepsiCo promotion. I searched that how many outlets

have glow shine board (GSB), flex board (FB), air hanger, company logo,

painting and gravity rack

MAJOR INSTITUTIONS INVOLVED IN THE ADVERTISING PROCESS

Control Institutions Facilitating Institutions

THE FIVE MS of ADVERTISING

A very important part of advertising is to decode the medium of

advertising and how much to spend on each time. For advertisement is takeshelp of print media, electric media, pop materials etc.

Advertising agencies

Media

Government

Competition

Market and Consumer

MISSION

What are theadvertising

objectives?

MONEY

How muchcan be spent?

MEDIA

What media

should be

used?

MEASUREMENT

How should

result be

evaluated?

MESSAGE

What message

should be

sent?

Advertiser


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Objectives:

To know the distribution strategy adapted by the organization

To arrange the products of Pepsi in visi-cooler as per the guidelines ofPepsiCo.

To know the response of the dealer regarding the products of PepsiCo.

Consumers buy what they see in the retailing. i.e. to attract consumers

by displaying their favorite brands or to help the consumers in finding

their favorite soft drink flavor or brand.

To attract consumers by displaying different brands.

To find out the factors that influences the consumers preference of a

particular flavor of soft drink.

To find out the market share of PepsiCo with respect to coke in terms

of WARM STOCK,CHILLED STOCK AND EMPTY STOCK .

To motivate the retailers for effective utilization of visi-cooler for

selling PepsiCo brands.

To analyze the problems of retailers and customers.

How many outlets are there which are covered with glow sign board,

hanger and flexi board.


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CHAPTER:-2

INDUSTRY PROFILE

COMPANY PROFILE


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ABOUT FMCG

The Fast Moving Consumer Goods (FMCG), are the products that are sold

quickly at relatively low cost. FMCG industry is also called as Consumer

packaged goods (CPG). Examples include non-durable goods such as soft

drinks, toiletries, and grocery items. FMCG primarily deals with the

production, distribution, and marketing of fast moving consumer goods. Some

of the prime activities of FMCG industries are selling, marketing, financing,

purchasing, etc. The industry also engaged in operation, supply chain, and

management.

FMCG industry provide a wide range of consumables and accordingly the

amount of money circulated against FMCG products is also high. The

competition among FMCG manufactures is also growing and as a result of

this, investment in FMCG industry is also increasing, specifically in India,

where FMCG industry is regards as fourth largest sector with total market size

of US$13.1 billion. FMCG sector in India is estimated to grow 60% by 2010.

FMCG industry is regarded as the largest sector in New Zealand which

accounts for 5% of gross domestic product (GDP).

Common FMCG products

Food and dairy products, glassware, paper products, pharmaceuticals,

consumer electronics, packaged food products, household products, plastic

goods, printing and stationery, photography, drinks, tobacco.

Scope

FMCG refers to those retail goods that are generally replaced or fully used up

over a short period of days, weeks, or months, within one year. This contrasts

with durable goods or major appliances such as kitchen appliances, which are

generally replaced over a period of several years.


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From the consumers perspective:

Frequent purchase

Low involvement

Low price

From the marketers angle:

High volume

Low contribution margins

Extensive distribution network

High stock turnover

Leading FMCG Companies:

Nestle, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, PepsiCo,

Carlsberg, Kleenex, General Mills, Parle, Britannia

Job opportunities in FMCG industry:

FMCG industry creates a wide range of job opportunities. This industry is a

stable, diverse, challenging and high profile industry providing a wide range ofjob categories like sales, supply chain, finance, marketing, operation,

purchasing, human resources, product development, general management.


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COMPANY PROFILE:

\

Type Public (NYSE: PEP)

Founded 1965

Headquarters New York, USA

Key people Indra Nooyi, Chairwoman, President & CEO

Industry Food and beverage

Products Pepsi, Mountain Dew, 7 UP, Slice, Mirinda, Diet Pepsi,

Diet cane, Lays, Tropicana, Lipton Tea, KurKure,

Aquafina, Duke, Soda Lehar

Net income $6.44 billion USD (2011)

Employees 297,000(2011)

Revenue $66.50 billion USD (2011)

GROUP OF COMPANIES:

Frito- Lay North America

PepsiCo Beverages North America,

PepsiCo International, Quaker Foods North America


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About PepsiCo:

PepsiCo is a world leader in convenient snacks, food and beverages with

revenues of more than US$60.504billion and over 297,000 employees.

PepsiCo is second largest company of soft drink maker PepsiCo is an

American multinational corporation headquartered in purchase, New York,

United States, with 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.

PepsiCos product lines generated retail sales ofmore than $1 billion each,

and the companys products were distributed across more than 200 countries.

Indra Krishnamurty Nooyi has been chief executive of PepsiCo since 2006.

PepsiCos founder name isDonald Kendall and Herman Lay. Our mission is

to be the worlds premier consumer-products company focused on convenient

foods and beverages.

. PEPSICO IN INDIA

PepsiCo gained entry to India in 1988 by creating a joint venture with the

Punjab government- owned Punjab Agro Industrial Corporation (PAIC) and

Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until

1991, when the use of foreign brands was allowed; PepsiCo bought out its

partners and ended the joint venture in 1994. Others claim that firstly Pepsi

was banned from import in India, in 1970, for having refused to release the

list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on

the market shortly afterwards. These controversies are a reminder of "India's

sometimes acrimonious relationship with huge multinational companies."

Indeed, some argue that PepsiCo and The Coca- Cola Company have "been

major targets in part because they are well-known foreign companies that draw

plenty of attention." PepsiCo has grown to become one of the countrys leading

food and beverage companies. One of the largest multinational investors in

the country, PepsiCo has established a business which aims to serve the

long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S. $1 billion since


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the company was established in the country. PepsiCo provides direct and

indirect employment to 297,000 people including suppliers and distributors.

PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including

Pepsi Foods Ltd, Frito Lay India, and Tropicana Beverages Company. The

company, through its subsidiaries manufactures, bottles, and exports fruit

juices and carbonated beverages and packaged snacks such as Lays, Ruffles,

Fritos, and Cheetos. PepsiCo India is based in Gurgaon, India.

PepsiCo nourishes consumers with a range of products from treats to

healthy eats that deliver joy as well as nutrition and always, good taste.

PepsiCo Indias expansive portfolio includes iconic refreshment beverages

Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such

as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking

water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice

based drinks Tropicana Nectars, Tropicana Twister, Slice, and the new

brand Nimbooz by 7up with real lemon juice. Local brands Lehar

Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of

brands.

KEY DEVELOPMENT IN PEPSICO INDIA HOLDINGS PVT. LTD.

PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani

'Nimbooz by 7Up' The product, with real lemon juice, no fizz and no

artificial flavors, will be available in three packaging formats of 200 ml

returnable glass bottles, 350 ml PET and 200 ml tetra packs, priced at INR 10,

INR 15 and INR 10 respectively.


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S.M.V. BEVERAGES Pvt. Ltd.

Introduction:

M/s SMV Beverages Pvt . Ltd., Jamshedpuris a franchise owned bottling

plant is located on the Tata Kandara road in Adityapur Industrial Area at

Jamshedpur and producing Pepsi range of bottled soft drinks, viz. Pepsi,

Mirinda, 7up, Mountain Dew, Slice and Sodaand it has now become a

house hold word in the state of Jharkhand.

The previous name of SMV was STEEL CITY BEVERAGES, but in March

1999 steel city beverage taken over by Mr. S.K. Jaipuria from Mr. N.K. Kamani

along with Rushab Marketing Company. He established another plant in the

same name of SMV Beverages Pvt. Ltd. And increase the production from his

new plant is 600 bottles per minute. Simultaneously a new market came in

name of Hyderabad Marketing Company, which is creating the needs of whole

Jharkhand state. The company symbolizes self reliance in technology and

ranked as the best bottling company of the country in terms of quality,

efficiency, and productivity. Till 1998 it was under itschairpersonSmt Kokum

Kamani and the country has constantly bagged numerous awards in

various occasions for quality assurance and productivity. In 1993 it bagged

top honor s for the best quality conscious plant among all the Pepsi

bottling companies in India. Steel City Beverages Pvt. Ltd. Was established in

the year 1967 and production commenced in March 1969. At the very start

company installed state of art machines and technology for the production and

bottling of soft drink. The bottling plant with a capacity of 220 bottles per

minutes was totally automatic and also had a modern state of art inter mix

machine for bringing forth the right blend of flavors. The company constitutes

to adopt innovative technology in keeping with its policy of constant entered

into an agreement with Pepsi food limited for the production and sales of soft

drinks for the people of Jharkhand. Right now there is only one bottling plant of

Pepsi in Jharkhand and it caters the need of all the Pepsi products in

Jharkhand. Entire state is divided into three territories Jamshedpur, Ranchi,

and Dhanbad, and one territory development officer controls each territory.


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ENVIRONMENT SCANNING:

The process by which organization monitors their relevant environment

to identify opportunities and threats affecting their business are known as

environment scanning.

The external environment in which S.M.V. Beverages Pvt. Ltd. exists consists

of a bewildering variety of factors. These factors (may also be termed

as influences) are events, trends, issues, and expectation of different

interested groups. These factors are explained below.

Events are important and specific occurrences taking place in different

environment sectors.

Trends are the general tendencies or the courses of action along which

events takes place. Issues are the current concern that arises in response to

events and trends.

Expectations are the demands made by interested groups in the light of their

concern for issues. By monitoring the environment though environmental

scanning, the S.M.V. BEVERAGES Pvt. Ltd. consider s the impact of thedifferent events, trends, issues, and expectation on its strategic

management process. Since the environment facing organization is

complex and its scanning is absolutely essential, strategist has to deal

cautiously with the process of environmental scanning is collected

systematically. Information related to markets and customers, the changes in

legislation and regulations which have a direct impact on organizations

activities, government policy statements pertaining to S.M.V. BEVERAGESPvt. Ltd. business and industry and so on, could be collected continuously to

monitor changes and take the relevant factors into account. S.M.V.

BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with

specific environmental issues from time to time.


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Such studies may be conducted, for instance, when S.M.V. BEVERAGES Pvt.

Ltd. has to undertake special projects, evaluate existing strategies, or devise

new strategies. Changes due to unforeseen development may also be

investigated with regard to their impact on the organization. Today S.M.V.

Beverages Pvt. Ltd. stands as a proud monument the great visionary its

founder Late D.N. Kamani and strides forth towards progress and

prosperity for the fulfillment of the ideas of its revered founder.

SMV Jamshedpur is the part of Jaipuria Group. Jaipuria Group has the

distinct honour of being the biggest bottler in India of the global giant PepsiCo.

It controls near about 60% of pepsis bottling business in India. The group has

been managing a network of scores of distributors and simultaneously provingemployment to thousands of people. With state of the art technology and

plants equipped with the latest machinery, the Jaipuria Group has occupied a

remarkable position in the soft drink industry of India. The company has

created a stronghold across the county.

P.S.kumar is CEO of SMV Beverages Ltd. Company have about 2000

employees and turnover per year about 63 crore in Jamshedpur and hole

plant turnover per year about 200 crore.


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ORGANISATIONAL STRUCTURE

A/C ASSISTANT SHIFT ENGINEER SHIPPING H.R EXECUTIVE

COORDINATOR

A/C CLERK ASSIST. WORKER H.R CLERK

ASSIST.

HOS

T.D.M M.E.M M.D.M Q.C

A.D.C SENIOR TECHNICIAN M.D.C EXECUTIVE

C.E TECHNICIAN M.E

P.S.R

BOARD OF DIRECTOR

MANAGING DIRECTOR

CEO

FINANCE

MANAGER

PLANT MANAGER PAM HR MANAGER


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COMPETITOR

Pepsi has a tough competition with Coca Cola while it faces a little

competition with the local producers like RC Cola etc. The local producers

hardly affect the sales of Pepsi in the market. There are different types of

competitor in the market. Some of them in which our product lines are

discussed below:

Close Vs Distant Competitor

Pepsi and Coke are close competitors. It means that both have direct

competition in the market, their products are close substitutes for one another.

Both the products can influence the market share of one another through

effective strategies made to cope up with their competitors. Pepsi cola and

Parle juice are distant competitors of one another. It means that their products

satisfy the same want but they are in indirect competition with one another.

Strong Vs Weak:

Coca Cola and Pepsi are strong competitors. Pepsi is the market leader and

Coca Cola is its competitor. The Pepsi makes defense strategies so that it can

maintain its position in the market. While Coca Cola is a challenger and itmakes attack strategies so that it can become the market leader. RC Cola is


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weak competitor of pepsi. Pepsi is the market leader and RC Cola is the

follower. Pepsi is not in direct competition with the RC Cola. It means that RC

Cola has little effect on the sales of Pepsi. Pepsi Cola is situated in an industry that is

dominated by two competitors, Coca-Cola and of course themselves.

A DAY AT PEPSI PLANTIn summer, when the mercury level crosses 45.6 deg C we wish to have ice

creams or cold drinks only. And it is as like a dream, if one gets the chance to

visit the production unit of a cold drink plant, and also gets opportunity to have

cold drinks without any limit and cost on such a hot day. Wednesday, 13th

June 2012 was one of the hottest days in the Jamshedpur of this years

summer and also a dreams day for me when I got such an opportunity to

visit the production unit of Pepsi of S.M.V. Beverages Pvt. Ltd.

Jamshedpur.

Here I want to share my experience of visiting the production unit of

Pepsi and knowledge I gained after seeing the production processes of

different brands of Pepsi.

But before going into the deep I would like to thank Mr. Dhananjay Kumar

(M.E), who changed the hottest day into my dream day and also to all staffs of

S.M.V. Beverages Pvt. Ltd. Jamshedpur for guiding me during this visit and

sharing their vast knowledge and experience with me.

Pepsi production process:

Any cold drinks (soft drinks) generally contains

Water

Sugar

Flavors or fruit pulp

Chemicals

CO2 gas (in carbonated soft drinks)


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The below four ingredients are added with the first ingredient i.e. water and

cold drink is prepared. Here in S.M.V. Beverages Pvt. Ltd. Jamshedpur

also the same ingredients are used to prepare Pepsi and its other

brands. All these ingredients are added at different stages by different

processes. Pepsi products are available in different SKUs (stock keeping units)

or packs, e.g. glass bottle, pet bottle, metal can, tetra pack etc. the preparation

of main liquid or drink is same but the machines and equipments used

for filling in different SKUs are different.

Four Ingredients:

Water

Sugar

Salt

Co2 gas

PRODUCTION PROCESS

The production process being carried on the SMV Beverages (Jamshedpur) in

for batch type. The entire process is almost automatic and it requires huge

amount of water and electricity. The production process is divided into

following steps:

1. Water Treatment.

2. Bottle Washing.

3. Syrup Preparation.

4. Acid room.

5. Filling.

6. Packaging

7. Shipping.


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PepsiCo follow five principles of sustainable packaging design:

Reduce : Using less material in the packaging, to conserve natural resources.

Reuse :Increasing use of reusable packaging and increasing the

amount of recycled material in the packaging.

Recycle : Designing packaging for recycling and developing

biodegradable and compostable packaging solutions.

Remove : Eliminating environmentally sensitive materials and processes

from the packaging.

Renew : Increasing use of renewable resources.

In an effort to meet his goals, PepsiCo have launched a global

sustainable packaging policy and formed a Sustainable Packaging Council

dedicated to:

Developing sustainable packaging strategies, goals, and targets

Developing alternative packaging material technologies

Hyderabad Marketing Company

In this unit, the head of sales and marketing is in charge of all the marketing

activities i.e. sales promotion, publicity, advertisement, market survey,

shipping. Though his main manager is assisted by sales executive and sales

supervisor.


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Literature review

There is a project on sales distribution, promotion and a consumer survey,

which has been done by me forSMV BREVELAGES. LTD, JAMESHEDPUR

(A franchise of Pepsi India Ltd). Sales distribution and the market research

has the aim of building mutually satisfied long term relation with key parties

customer , suppliers, distributors in order to earn and retain their business.

STOCK: CHILLED STOCK AND EMPTHY STOCK.

To estimate Per day sale of Pepsi brand and its competitors in

Jamshedpur

To analyze the problem of retailer and customer

To analyze customer satisfaction of Pepsi as compared to coke

Descript ion o f the Field

The field of the study is JAMSHEDPUR town of the JHARKHAND. The study

was on the market research on Pepsi product and also about the retailers. As

it is the GREEN CITY of JHARKHAND, this region is very developing with

every scope to boost the living standard of people. As the situation is

convenient for our investigation to study MARKET of PEPSICO IN

JAMSHEDPUR MARKET.

As field situation is crucial for the research, we find the field informative for a

research with the available heads.


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CHAPTER:-3

RESERCH METHODOLOGY

MARKETING AVTIVITIES

MARKETING MIX


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RESEARCH METHODOLOGY

Introduction

The main aim of this research study is to analyze the soft drink preferencesand drinking habits of soft drink of people of different age, sex, education and

income groups in the city. Also find out the avg. expenditure (weekly). The

research will determine the factors which influence the population to prefer a

certain soft drink.

Objective

To find the Soft drink preferences of the people based on their age,

sex, education, profession and occupational income.

To determine average weekly expenditure on soft drinks.

To know the distribution strategy adapted by the organization.

To find out the market share of Pepsi with respect to coca-cola in

terms of WARM ,CHILLED.

Purpose:

The purpose of the project is to gather information about the true

market position of the soft drink market in the Jamshedpur division. Its main

objective is to find out how strong the relationship between PepsiCO. and the

customer. what are the problems faced by retailer & customer.


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Methodology

Research design:

The research design used in this project is a descriptive as well as exploratory

research design. The design will explore and describe the characteristics of

users of a given product, the degree to which the product use varies with

income, education, sex, age. So this design is appropriate for the project.

Sampling Method:

The sampling procedure used will be non-probabilistic and the method

employed will be convenience sampling method because the sample

population will be readily available outside the retail outlet itself.

Sample unit:

The sample units will be individuals who have bought a soft drink from outlet.

Sample size:

A sample size of 100 to 150 has been taken into consideration with about 10

samples to be taken from each outlet or place. The samples should be such

that there is an adequate ratio of age group and gender.

Data collection tools:

Primary data and secondary data has been used in data collection tools.

Primary data will be collected by preparing a questionnaire of 2 page and the

retailers will be requested to answer those questions. Secondary data is

collected through internet, website and books.

Analysis

The study will be analyzed using descriptive techniques. For this project we

will use measures of central tendency, measures of dispersion, regression,

correlation. Other statistical tools may also be used as and when required.

Expected outcomes

Towards the end of the research we are expected to find drink preferences

and drinking habit of soft drinks in a certain part of Jamshedpur. The study will


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reveal the factors which influence the consumers the most and the least to

prefer a flavor.

KEY AREAS

The key area of my summer training was PEPSICO STRATEGY OF SALES

& DISTRIBUTION AND PROMOTION .The Company had divided his retail

outlets on the basis of area wise and character wise.

Each of the division is having mainly three types of outlets.

AREA WISE : - The area of my summer training was Jamshedpur and

according to the company the whole training area was divided into three parts.

INNER CIRCLE: - These are the main selling point of a company. In inner

circle we mainly consider those selling point or retailers shops which

come under the main market area.

OUTER CIRCLE: - These areas are adjacent to the main market area,

which is a mixture of residential areas and market areas. In these areas we

mainly talk about those retailers shops, which are place d in the residential

areas and quite away from the main market..

OUTSKIRTS: - These areas are quite away from the main city and the

main market, or the interior areas of the towns.

CHARACTER WISE: - Again there is a division of outlets on the basis of

characters (type of work done by the retailers) and there are again three types

of outlets.

CONVENIENCE OUTLET: - These types of outlets include general stores,

beetle shops, stationary shop, medical shop and such type of other shops.

GROCERY OUTLETS: -These types of outlets include grocery stores which

indulge in selling of foods and related things used in the home.

EATERY: - It includes restaurants, fast food joints, hotels etc.


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MARKETING ACTIVITIES

INTRODUCTION:

Marketing needs a framework that begins and ends with the customer.Marketing tools by themselves do not achieve marketing objectives. There is

an intermediate step between the deployment of marketing tools and the

achievement of marketing objectives. A marketing network consists of the

company and its supporting stakeholders (customers, supplier s, distributors,

retailers, ad agencies, and others). The operating principle is simple: build an

effective network of relationships with key stakeholders, and profits will follow.

A set of marketing tools the fir m uses to pursue its marketing

objectives are called marketing mix. These tools can be classified into four

groups which are called the four Ps of marketing

PRODUCT PLACE

PRICE PROMOTION

MARKETING MIX

TARGET MARKET


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The entire market in this case is divided into three parts viz.:-

Route market

Home market

At work market

ROUTE MARKET

Outlets coming under this market cater to the needs of those customers who

are engaged in shopping, eating out in restraints, going to and from work, in

amusement center s etc. In simpler words this market is what we call the

bazaar.

HOME MARKET

Outlets coming under this market cater to the needs of those customers

who buy soft drinks predominantly for home consumption either by glass

bottles or pet bottles. The shops targeted under this category are those

which are located inside residential complex or are located nearer to the

residential areas. These shops predominantly sell pet bottles.

AT WORK MARKET

Outlets coming under this market cater to the needs of those customers who

are working in offices, factories etc. i.e., the outlets targeted are the canteens

mainly. The soft drink being a FMCG has a wider and scattered market.

Thus to enable concentrated effort of marketing activities in different scattered

market, for effectively setting the entire market is broken into the following

segments. Route market outlet in this market caters to these people who are

engaged in shopping, eating outgoing to and from work, in amusement centers

etc. Home market: outlets in this market cater to people buying

predominantly for home consumption, either by case or loose bottles.

At work market: outlets in this market cater to people working in offices,

factories etc. An attempt is also made to make drinks readily and

convexity available all day long while people are actively working.


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MARKETING MIX OF PEPSI (THE 7 PS)

A. PRODUCT:-

Pepsi is a soft drink and which is prepared with the help of carbonate, sugarand water. During the process manufacturing first it sterilized, then it is packed.

But its other product are preparing by some fruit and other carbonate mix

water etc.

Product Line:

Name of product Quantity Color Flavor

Pepsi 200ml Burnt-sugar Cola

Pepsi 300 ml Burnt-sugar Cola

Pepsi 600 ml Burnt-sugar Cola

Pepsi 1.2lt. , 2.0lt. Burnt-sugar Cola

Mirinda 200ml Sunset Orange

Mirinda 300 ml Sunset Orange

Mirinda 600 ml Sunset Orange

Mirinda 1.2lt. 2.0lt. Sunset Orange

Slice 200ml Yellow Mango





7-UP 200ml Colorless Lime

7-UP 300 ml Colorless Lime

7-UP 600 ml Colorless Lime

7-UP 1.2lt. , 2.0lt. Colorless Lime

Mountain Dew 200ml Colorless Lemon

Mountain Dew 300 ml Colorless Lemon

Mountain Dew 600 ml Colorless Lemon

Mountain Dew 1.2lt. , 2.0lt. Colorless Lemon

Soda 300ml , 500ml Colorless .


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PACKING:-

The packet of Pepsi is different types like 200ml. to 2lt. it is only on Pepsi

product and other product are same but only Slice soft drinks is slightly

different of the other produce. It packaging size is like 250ml, 500ml, and 1.2lt

sizes this types.

SERVICES:-

Any kind of damage, spoiled or expired are return back if necessary.

B. PRICE:-

Pepsi products are 7 types and its name is Pepsi, Mirinda, Mountain Dew,

Slice, 7 up, Nimbooz and Aquafina. All these products are different types of

size and different packaging. If we will see its price of product are same except

only Slice and Aquafina.

LITRE:- 200m.l 250 m.l 300m.l cane lt 600 1lt 1.2lt 2lt

Rs:- 8/9/10.00 12.00 13.00 16 25 27 38 55 65/53

PRICE IN MAY 2012

Premium Volume Price/case

Pepsi 200ml 166

Pepsi 300ml 282

Soda 300ml/600ml 174/336

Slice 500ml/250ml 632/282

Slice 1200ml 615

Mountain Dew 600ml/200ml 656/212

Aquafina 1lt. 158

Mountain Dew 2lt.(53,65) 442,540

Pepsi 600ml/1lt. 608/418

Pepsi 2lt.(53,65) 442,540

Mountain Dew 200ml 212

Slice 250ml 282


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C. PROMOTION:-

Promotional activities play a key role in the entire marketing effort being

carried out by S.M.V. Beverages which are in sync with those of PepsiCo

India. These promotional activities generate more sales as well as create a

good image of the product in the mind of the customer.

The promotional tools used by SMV Beverages for its marketing activities

are

Point of sale display

Incentives to retailers

Sales promotion through sponsoring special events

Sales promotion through various schemes

Advertising

If we will say about the promotion is like that communication and

it depends on the advertisement, personal selling, public relation, direct

marketing, and sales promotion .

1. Sales Promotion:-

Sales promotion is done by company by different schemes to the

distributor, retailers and customer. For example: buy one case, get 2 or 3

PEPSI, some new prizes, etc

2 Advertisement:-

A very important part of advertising is to decide the medium of

advertising and how much to spend on each medium. The different mediums

used by Pepsi are:

TV

Hoarding

Newspaper/Magazines

Out of these Pepsi invests heavily in advertising through TV. Brand

ambassadors of Pepsi include film stars, cricketers and other sport persons.


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PepsiCo gives these brand ambassadors hefty sums running into many crores

to endorse their brands. Some of the brand ambassadors of PepsiCo

associated with the different brands are:

Ranvir Kapoor - Pepsi

M.S.Dhoni - Pepsi

Kaitrina Kaif - Slice

Asin - Mirinda

Sharman Joshi - 7up

Harbhajan singh- Pepsi

Virat kohali- Pepsi

The Pepsi product is different types and scheme offers is different types. The

Pepsi, Pepsi Gold advertisement is scheduled in different types; Company

is providing its scheme offer is different types. In the summer times (March to

July) and the other one is August to October.

1. There are more than 50 channels we have seen advertisement

program of Pepsi and other products of the soft drinks on the T.V and

other areas. So that whichever channels we are watching, Pepsi was always

present.

2. It covers almost all channels and important programmers of these

channels.

3. Posters, stickers, leaflets are given in different languages to

make understand different people.


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1. PUBLIC RELATIONS : -

In spite of all these things, Pepsi also launch special gift packages with

corresponding design introduced for the occasion both Pepsi and other

products at many locations across the country.

2. DIRECT MARKETING :-

Direct marketing is done with the help of sales personnel, who takes order

from the house and deliver the stocks.

3. SALES FORCE :-

Under each distribution, sales personnel are appointed who looks over the

sales of Pepsi and problems regarding the sales.

D. PLACE: -

In India there are different types of franchise are having in the country. One is

having in the 8 s m.v beverages Pvt. Ltd. Adityapur Jamshedpur Jharkhand.

This franchise of Pepsi co. is distributing in side of the Orissa, Jharkhand,

Bihar in different areas.

E. PEOPLE:-

The attitudes of staff

Training of staff

Internal relations

The observable behavior of staff

The level of service-mindedness in the organization

The consistency of appearance of staff

The accessibility of people

Customer - customer contacts


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F. PROCESS:-

The manner in which the service is delivered

Degree of customer contact

Quality control standards

Quality assurance

Payment of method (degree of convenience)

Queuing system for customers

Waiting times

G. PHYSICAL:-

The environment or atmosphere in which the service is delivered

Buildings, Furnishings/decor , Layout

Goods associated with the services e.g. carrier bags, tickets,

brochures

All the above can help shape customers perceptions of the service


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CHAPTER:-4

EDS

PLAN-O-GRAM

SWOT ANALYSIS


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EVERY DEALER SURVEY (EDS)

The Every Dealer Survey Commonly known as EDS. EDS is made every year

by the company. This survey is done every year by the company so that

complete awareness about the retailers and there attachment with the

company is observed. The data of EDS helps in knowing the companys

position among the competitors as well as the competitors position.

The assessment is done in following ways:

The format of EDS is given as under:

Outlet name Address of Outlet

Channel(category of Outlet)

Which type Outlet(PI,CCX, Mix)

Visi cooler condition

Prominent Location(yes or no)

Charged (How much charge the visi cooler with products)

Volume Area

During the survey of EDS I faced the various types of Dealers

problems and them want . I have tried to visit each and every outlet

and personally interviewed them. In order to find the market share of

Pepsi. I have conducted a survey at many areas of Jamshedpur.

The number of outlets, which are covered by me in different area ofJamshedpur, are following:-

S.NO. Location(Jamshedpur) No. of outlets

01 Baridih 18

02 Bistupur 24

03 Sonari 21

04 Jugsalai 47

05 Mango 29


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06 Toyladungri 23

07 Telco 22

08 Pursudih 24

09 Adityapur 19

10 sakchi 16

Distribution Effectiveness:

From the outlet survey we can find out the number of outlets and the

stock and the other details. Non buyers also be located. Activation of non

buyers should be done immediately. With the above knowledge on can

increase the number of routes to get increased dealers coverage and

hence also increased more effective sales. Also details of this have help to

check upon the route selling of salesman, so that we can control them by

closely monitoring their performance.

How to increase distribution effectiveness:

After the above survey, the company can improve the distribution

network.

Immediately activeness of non- buyers.

Improve the dealer coverage.

Increase the realignment of routes.

Better control thorough route card.

Availability of goods on time.

Therefore, Every Dealer Survey is important keeping in mind that

distribution forms the major marketing activity in our industry and alsothat through these survey one acquires knowledge of the market. It should

also be added here that continuous dealer surveys are required because of the

following reasons.

_ As our turn over increase we require skills to tackle problem and dealer

survey help in acquiring first hand as to use the skills effectively.

_ With our increased growth, investment of money are increased for variousmarketing inputs e.g. case stock, advertising, merchandising etc. and by


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survey we can get an indication of the areas in which investment should

be made to get the maximum benefits.

Importance of EDS (every dealer survey):

Market Knowledge:

Dealer survey gives the total profile of the market by knowing:

Location of outlet.

The type of outlet.

Number of dealer who keep Pepsi and coca cola and comparing

the stock and awareness of brand.

Take the information about distribution process of company.

Take the information to dealer that which brand of product more sell or

popular.

Gather the information about scheme which is given by company to

retailers.

The marketing inputs with respect to:-

i. Advertising

ii. Visi-cooler size

iii. Customer service

Though PepsiCo has entered the market only 19 years ago but it

has captured a big market share and ends the monopoly of coca cola,

which has ruled for 13 years. This survey enables us to know:

How many exclusive outlets of PepsiCo, Coca cola and how many

mixed outlets of both brands are there in a particular market segment?

What are the promotional kits presents at all of these three types of

outlets provided by PepsiCo and Coca cola?

What are the gaps? I.e. what are those promotional tools, which can be

used to increase the sale of PepsiCo?

How retailers can be motivated to sale PepsiCo products insteadof Coca cola?


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Apart from these, this survey also provide us the information

about the sales every outlets. And this report is useful for planning or taking

decision about how much amount should be spent for sales promotion for each

outlet.

From these aspects we can know how good we are in the market place

and those areas where we are lacking. It also helped to found that in some

place or areas where only the competitor brand available, then by the help of

survey we can find out the reason behind non availability of PepsiCo product

in that specific area. The knowledge of case stock will indicate our case- in

trade and that of competitors. This will also indicate our case velocity which

helps to plan our bottle as well as whether our distribution is effective or not. Ifour case stock is low then I may decide upon a case stocking

campaign. Therefore, appropriate marketing strategies can be worked out

depending upon the findings.

PLAN- O- GRAM

PEPSICO STRATEGY

PepsiCo provides visi coolers (Refrigerators fitted with glass door)

to Pepsi outlets, so that the retailers can provide chilled Pepsi drinks to

consumers. This also increases the sale of Pepsi products. Visi coolers are

of various sizes for instance 165 , 200 , 220 , 300 , 320 , 400 , 440 , 650 ,

1200 and so on.Plan-O-Gram is the process of filling of visi cooler with

the Pepsi, and other Pepsi products i.e. 7UP, Mirinda, Slice, Mountain

Dew, Aquafina, and Tropicana fruit juice according to the sequence

prescribed by PepsiCo.

As per the research conducted by PepsiCo, Pepsi is the most selling

brand followed by 7Up, Mirinda, Mountain Dew and Slice. And on the basis of

this research PepsiCo has developed a sequence of different brands for

filling up the visicooler and also for placing in to the shelves. Sequence is

as under.

Pepsi 7Up Mirinda Mountain Dew Slice Aquafina Pepsi


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products are available in glass bottles, pet bottles, metal cans and tetra packs.

The number of bottles, cans and packets filled in visi coolers varies as

per the size and capacity of the visi-cooler. The figure in the next page

shows different brands, sequentially filled in a visi-cooler.

Objectives :

To know the distribution strategy adapted by the organization

To arrange the products of Pepsi in visi-cooler as per the guidelines of

PepsiCo.

To know the response of the dealer regarding the products of PepsiCo.

Consumers buy what they see in the retailing. i.e. to attract consumers

by displaying their favorite brands or to help the consumers in finding

their favorite soft drink flavor or brand.

To attract consumers by displaying different brands.

To find out the factors that influences the consumers preference of a

particular flavor of soft drink.

To find out the market share of PepsiCo with respect to coke in terms

of WARM STOCK,CHILLED STOCK AND EMPTY STOCK .

To motivate the retailers for effective utilization of visi-cooler for

selling PepsiCo brands.

To analyse the problems of retailers and customers.

How many outlets are there which are covered with glow sign board,

hanger and flexi board.


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Products are charged according to the

P-O-G


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PepsiCo visicooler

Pic-1 pic-2

Pic-3 pic-4


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Procedure

Visi-cooler plan- o-gram (P-O- G) includes the following three processes.

I. Visi pure and visi cleaning.

II. Charging.

III. Plan o gram.

l. Visi pure and visi cleaning:

Sometimes retailers use to keep products like chocolates, ice creams,

and other substitute and competitors products like fruity, jumpin, chilled milk,

curd , and coco cola products in the visi cooler. These products grab the

places of Pepsi, again this increases the selling of substitute products. Here

visi pure means, removing all items except Pepsi from the pepsi visi-cooler.

And visi cleaning is simply Cleaning of visi cooler with a duster . Visi cleaning

helps to keep the products clean and also attract the consumers.

ll. Charging:

This process involves the transfer of Pepsi from warm stock to cold

stock. Or in other words charging is filling of visi-cooler with PepsiCo products

from the stock available at the outlet. This helps in following ways,

Helps in effective utilization of the visi-cooler.

Helps in maintaining the stocks of chilled pepsiCO products every time.

Attract consumers.

Helps in keeping the visicooler pure.

Increases sale of pepsiCO.

Bottles/cans/tetra packets are first cleaned with a clean duster and dusts are

removed and then filled into the visi-cooler.

lll. Planogram:

This is a process which involves sequentially placing of


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bottles/cans/tetra packs of different flavors or brands in the visicooler. The

sequence of different flavors or brands is prescribed by Pepsico, and it is

discussed earlier. Plan o gram helps in following ways,

Helps the consumers in finding their favorite flavor or brand.

Attracts consumers by displaying different brands.

Promotes in selling all flavors or brands.

Acts as window display in the outlets.

Steps for plan-o-gram during 2 time and onward visits.

Step 1:Check the cooler.

Step 2:Determine the number of bottles of each brand or flavor required to

fill the cooler according to the PO- G sequence.

Step 3:Clean the bottles/cans/tetra packs with a duster.

Step 4: Place the products in lower shelve first.

Step 5: Maintain a gap of 2 Inches between the bottles and the upper

shelve.

Step 6:Repeat this process.

Step 7:Charge the products according to the prescribed sequence of P-O-

G.

Step 8:Ensure that cooler is 100% charged.

How retailers are motivated to maintain P-O-G, and visi pure?

Plan o gram and making the visi cooler pure is the job responsibility of

merchandiser. A merchandiser is a person who visits the outlets on daily

basis. He checks the visi cooler, makes it pure and charges the product

according to the plan o gram. But, sometimes retailers use to keep other

products also (non pepsi products) in the visi cooler provided by Pepsico and

they do not show any interest to follow the plan o gram. So to motivate

retailers to follow plan o gram, PepsiCo provides attractive

incentive/packages to the retailers.

I did P-o- G for two weeks in two different market areas Dimna road mango


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during my training period. The P -O-G reports of these two areas are given in

the next pages.

Problems, we faced during P-O- G:

1. Unavailability of all flavors at some outlets.

2. Technical problems of visicooler, such as cooling problem. Cooler was not

working.

3. Some retailers were not interested for P-O-G.

4. Some outlets use to sale only few flavors or brands of PepsiCo and not all.

How we solved those problems?

During the training period for P-O-G, the problems faced are mentioned

And with the help of the guide and direction of theC.E (Customer Executive)

of the area, the problems are solved

When there was a shortage of any flavor at any outlet, we informed

to the respective distributor to supply that flavor.

After getting information from the concernedC.E, technical people solved

the technical problems of visi coolers at outlets.

Some retailers were not interested for P-O-G. To motivate them for the

same we explained the benefits of P-O-G and various skims which were

available for the retailers for P-O-G and maintaining visi pure. Pepsi Cool

Zone is one of such skim, which was available during that period of time for

the retailers.

Outlets, where only few flavors or brands of PepsiCo are sold not all the

flavors, we placed one available flavor in each shelve of the cooler. e.g.

Beer-Bar, restaurants, where only three brands of PepsiCo are sold; which

are Pepsi, 7Up, Soda and water.

After P-O-G, the assignment was to take the orders of products e.g; Pepsi,

Mirinda, 7UP, slice, mountain dew etc in many area of Jamshedpur. Areas

name:


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Parsudih

Karandih

Jamco Baridih

Bhalubasa

SWOT ANALYSIS

In order to get clear understanding of the position of Diet Pepsi in the various

markets we did a SWOT analysis from the data obtained from the survey

and the various retailer interviews

STRENGTHS

PACKAGING AND PRICING :- Pepsi has the advantage of having provided

the same kind of health based carbonated drink the Slim Diet Pepsi Can

which in comparison to the Diet coke is a much more attractive offering

because it is slim sleek equally healthy and way cheaper.

DISTRIBUTION :- As already mentioned Pepsi India has one strongest and

most efficient sales and distribution networks not only in India but also

throughout the globe. PepsiCo in India is the relationship the company and its

constituents have with the channel partners. Also the recently introduced

retailer benefit schemes such as the gold card membership and other

free gifts and offerings not only motivate the retailers but also helped us

create visibility for the Slim Diet Can range in a profound. The experience of

working with people who welcome us with a smile rather than a frown will

always be remembered.

NON-CARBONATED:-The non-carbonated segment is dominated by Pepsi;

Tropicana is the market leader in fruit juices. In the mineral water segment,

Aquafina clearly outsells Kinley without any fuss.

Bottling PepsiCo has the advantage of being in partnership with the largest

bottler in India, the R K Jaipuria Group. RKJ Group controls almost 65% of the


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bottling operations of PepsiCo in India. At times this is also seen as a Pepsi

controls almost 60% market share in the Cola segment.

WEAKNESS:

SECOND MOVER DISADVANTAGE:- Diet Pepsi Cola does have the

first mover advantage which Diet Coke has and this may prove to be a major

shortcoming also in the Agra Market no Extensive efforts have been made to

popularize it.

Brand On a comparative scale Diet Coke proves to have a better

brand image in customers mind than. This compels to incur extra expenditure

in Advertising, Promotions and Sponsorship.

MCDONALDS:- This is one of the most important reason why Diet

Coke outsells Pepsi worldwide and specially in the United States. Similarly, in

India Diet Pepsi may suffers in sales because of institutional sales. Now Pepsi

is trying very to bridge this gap in the near future.

EXPENDITURE:- Right from the very beginning Pepsi has hired

the biggest and the most expensive stars in the country as its brandambassadors and has spend heavily on advertising which has affected its

balance sheet.

Visi-coolers:- At presently this is one the biggest problems faced

by Pepsi. Pepsi is not able to get refrigerators in India so they have to

import it other namely Sri Lanka, Mauritius etc. Because of this, retailers are

facing lot of problems in visi-coolers. They are not able to get new

refrigerators, replacements for old ones, even the repair work takes lot of time

because at times even the spares are not available on time.

OPPORTUNITIES

Lowest Per Capita Consumption: - Even after almost decades of

presence in the market, there are growth opportunities for Diet Pepsi in India

as here the per capita consumption of carbonated beverages is one of the

lowest in the world.


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Health Based: apart from its Juice Based drinks portfolio Pepsi can Use

the Slim Diet can to the maximum by promoting it as a health drink at Cheaper

prices.

THREATS:

NGOs:- NGOs like CSE can seriously hamper the sales and prospects

of companies operating in this industry. This happened during the pesticide

controversy involving both coke and Pepsi.

HEALTH:- Growing health awareness among people and some of ill

effects of carbonated beverages have pursued many people to switch

over to non-carbonated beverages that can seriously hamper the long-

term prospects of the entire Industry and not Pepsi.

ENVIRONMENT:- Environmental concerns are often raised

because of the massive amount of water extracted by the bottling plants

resulting in the drop in groundwater level which affects the local population

adversely. In India PepsiCo adopted the strategy of growth through

intensification. In the intensification strategy, it used market penetration by

developing one of the strongest sales and distribution network in the world and

utilizing it to the fullest.

Pepsi did market development by making the aware of the best

products available at their disposal, by using the best technology to

produce the products, by properly communicating with the customer, and

making the customer realize that he is important.

Pepsi also explored new markets by venturing new segments like fruit

based beverages, sports drinks, and snack food division. Pepsi expanded and

established itself in the market place by constantly developing new products to

the customers, like Tropicana, Gatorade, and Pepsi Blue. I n this way, Pepsi

was also able to effectively counter the threats posed by substitutes and new

entrant.


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ANALYSIS

Following are the data acquired from questionnaire by taking 100 samples:

Q.1 Which brand of soft drinks you deal in?

a. PepsiCo b. Coca-cola c. Both d. other

Brand Sample

PepsiCo 40Coca-cola 24Both 31Other 5

INTERPRETATION:

From the above data, I can conclude that around 40% of people like PepsiCo

products, 24% coke products, 31%both and 5% others products in

Jamshedpur.

PepsiCo

40%

Coca-cola

24%

Both

31%

Other

5%

Brand


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Q.2 Which brand of cola provides you better facility?

a. PepsiCo b. Coca-cola c. Both

Brand Sample

PepsiCo 51Coca-cola 24Both 25

INTERPRETATION:

From the above data, I can easily get to the conclusion that PepsiCo provides

better facilities in Jamshedpur.

PepsiCo

51%

Coca-cola

24%

Both

25%

Brand


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Q.3 How many carats of Pepsi and Coca-cola you sell per day

in summer?

a. 0-1 b. 1-2 c. 2-3 d. More than 3

Sales per day Sample

0-1 121-2 242-3 26

More than 3 38

INTERPRETATION:

From above data, It can be said that 38% of retailers sell more than 3 crates

in one day.

0-1, 12

1-2, 242-3, 26

More than 3, 38

0

5

10

15

20

25

30

35

40

0-1 1-2 2-3 More than 3

Sales per day


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Q.4 Which companys visi-cooler you have in your outlet?

a. PepsiCo b. Coca-cola c. own d. Both

Visi-cooler Sample

PepsiCo 35Coca-cola 29Both 28

Own 8

INTERPRETATION:

From the above data it is clear that 35 % of retailers use PepsiCo visi-cooler

in their outlets.

PepsiCo, 35

Coca-cola, 29Both, 28

Own, 8

0

5

10

15

20

25

30

35

40

PepsiCo Coca-cola Both Own

Visi-cooler


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Q.5 Which company gives more schemes, PepsiCo or Coca-

cola?

a. PepsiCo b. Coca-cola

Company Sample

PepsiCo 80

Coca-cola 20

INTERPRETATION:

From the above data, it is clear that 80% of retailers get schemes from

PepsiCo.

PepsiCo

80%

Coca-cola

20%

Company


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Q.6 Which kind of soft drink your customers prefer to drink?

a. Juice-based b. Cola-based c. Milk-based

Base Customers preference

Juice-based 32Cola-based 54

Milk-based 14

INTERPRETATION:

From the above data, it is clear that 54% customers like to prefer cola-based

drink and 32% juice base and 14% milk base.

0

10

20

30

40

50

60

Juice-based

Cola-based

Milk-based

Juice-based, 32

Cola-based, 54

Milk-based, 14

Customer's preference


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Q7. Which type of customers like soft-drinks according to

you?

a) Student b) Business

c) Petty traders d) Self employed

e) Supervisors/Clerical f) Junior Executive Level

g) Middle Senior Level h) Housewife

Type of customer Sample

Student 39Business 15Petty traders 12Self employed 4Supervisors/Clerical 7Junior Executive Level 13Middle Senior Level 8Housewife 2

INTERPRETATION:

Student, 39

Business, 15Petty traders, 12

Self employed, 4

Supervisors/Clerica

l, 7

Junior Executive

Level, 13 Middle Senior

Level, 8

Housewife, 2

0

5

10

15

20

25

30

35

40

45

Sample


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From the above data, it is clear that 39% of students like soft-drinks , 15% of

business person like soft-drinks and 2% housewives.

Q8. Which kind of drink you prefer to have?

a) Packaged

b) Unpackaged

Drink Customers preference

Packaged 85Unpackaged 15

INTERPRETATION:

From the above data it s clear that 85% of retailers prefer to buy packaged

drinks.

Packaged

85%

Unpackaged

15%



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Q9. When do you go to have a drink, do you have pre

determined flavor in the mind?

a) Yes

b) Choose on availability

c) Choose by coldness

Flavour is pre-determined? Customers preference

Yes 64Choose on availability 10Choose by coldness 26

INTERPRETATION:

From the above data, it is clear that 64% of customers have predetermined

flavor in their minds before having drinks.

Yes, 64

Choose on

availability, 10

Choose by

coldness, 26

0

10

20

30

40

50

60

70

Yes Choose on availability Choose by coldness



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Q10. On selecting a particular flavor, which of the flowing

attributes do you consider for? Please rank them in order.

a) Coldness

b) Availability

c) Advertisement

d) Taste/Quality of food

e) Retailer suggestion

f) Offer

Basis Customers preference

Coldness 6

Availability 23Advertisement 41Taste/Quality of food 8Retailer suggestion 10Offer 12

INTERPRETATION:

From the above data, it is clear that majority of the customers around 41% of

customers are influenced by an advertisement before buying a particular

flavor of soft-drinks

Coldness, 6

Availability, 23

Advertisement, 41

Taste/Quality of

food, 8

Retailer suggestion,

10Offer, 12

0

5

10

15

20

25

30

35

40

45

Coldness Availability Advertisement Taste/Quality of

food

Retailer

suggestion

Offer



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Q11. What is the customers weeklyaverage expenditure on

Soft drinks items?

a) Less than 50

b) 50-99

c) 100-199

d) More than 200

Amount (Rs.) Customers weekly expenditure

Less than 50 4350-99 27

100-199 21More than 200 9

INTERPRETATION:

From the above data, it is clear that 9% of customers spend more than 200

Rs. On soft-drinks items and 43% of customers spend less than 50 Rs. On

these items.

Less than 50, 43

50-99, 27

100-199, 21

More than 200, 9

0

5

10

15

20

25

30

35

40

45

50

Less than 50 50-99 100-199 More than 200

Customer's weekly expenditure


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Q.12 Was the outlet maintaining the glow sign board, hanger

and flexi board effectively?

a. YES b. NO

Boards Sample

YES 75NO 25

INTERPRETATION:

From the above data, Graph is representing the results for outlets maintainingglow sign board, hanger and flexi board.

YES

75%

NO

25%

BOARD


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CHAPTER:-5

FINDINGS

RECOMMANDATIONS

CONCLUSION


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FINDINGS:

Pepsi has 54% market share compared to coca cola in Jamshedpur,

but they are very close to each other.

From Coca Cola products, Thumbs-up and Sprite are market leaders

and in Pepsi brand, Slice is the no.1 selling product.

The dealers want a soft strategy for replacement of leakage bottle.

According to retailers Pepsi gives more schemes and gifts compared

to coca cola.

Most of the dealers want glow sign board, hanger and flexi board and

visi cooler for long time.

Over the visit to market what I observed is the counters which has visi

coolers in front of the store gives more sales.

In my area of working Pepsi has more execlusive counters than coke

but no. of mix outlet is the maximum.

PSR is not well trained compare to coke.

No any regular visit in retailor shop for filling the order.

As per the study some dealers want to sell the only pepsiCo product.


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RECOMMANDATIONS

The following recommandation that can be implemented to increase

consumer satisfaction and profitability of the company.

Distributions of product should improved during summer as this is the peak

time of the business.

The PSR should be trained and to be courteous with the retailer.

P-O-G should be done reguraly as it pushes sales of the product as well

as gives more visibility of the product.

It should depend on the parnership aggrement with supplier and distributer

and make them feel as part of the company.

PepsiCo visi cooler and racks should be made easily available for the

retailers to serve the purpose of visibility as they say JO DIKHEGA

WOHI BIKEGA

More emphasis should be given to exsisting retailers at the same time new

retailers are to be encourged to sell Pepsi.

They should be Regular visit of customer representative and visi-cooler

technician in out lets.

Merchadising facilities should be fulfilled on time like glow sign board, flexi

board and banners etc.

The criteria to provide glow sign and visi-cooler should be changed and

seprate department should handle it.

Supply should be prompt and from time to time customer problems should

be solved.

There should be more brand awarness specialy in rural areas.

Customer excutive should always take the feedback from the retailer about

the service and product.


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Supply and distribution should improved of pepsiCo products during

summer.

CONCLUSION

Everything in this world is made to utilize properly but should be reached to

the proper person or to the proper utilize areas. Otherwise the value added to

those things become in vein. As there is a proverb that says, FAR FROM

EYE, FAR FROM HEART.

The marketing activities of SMV beverages are good but there is a need ofsome promotional activities. Beside this there is certain more conclusions

which are as follows:-

Pepsi has got far better position and giving the tough competition to its

competitor coke.

Company directly supply the product to retailers.

. The distribution system creates value added to all most all products.

Thus marketing role plays a very important role in achieving the objectives of

an organization. According to Drucker, Both the market and the

distribution chennels are often more crucial than the product. They are

primary and the product is secondary. In an economy like that of India, where

marginal shortages can lead to disproportation distortion in prices, a

dependable and efficient distribution system is very much essencial All from

the above study not withstanding its restructuring efforts, pepsi still had some

distance to cover to lead the market.


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BIBLIOGRAPHY

Books referred:

Principles of Marketing by Philip Kotler, Gary Armstrong, Prafulla Y.

Agnihotri, and Ehsaan Ul Haque

Magazines referred:

India Today

Business World

Websites referred:

HTTP://WWW.PEPSICO.COM

HTTP://WWW.GOOGLE.CO.IN

HTTP://WWW.WIKIPEDIA.ORG

FRIENDS & SENIORS

TELEVISION


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ANNEXURE


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QUESTIONNAIRE

I had prepared questionnaire for Retailers during the survey.

Questionnaire for retailers:

Name of shop/outlet

Address/Location

Type of outlet

Q.1 Which brand of soft drinks you deal in?

a. PepsiCo b. Coca-cola c. Both d. other

Q.2 Which brand of cola provides you better facility?

a. PepsiCo b. Coca-cola c. Both

Q.3 How many crates of Pepsi and Coca-cola you sell per

day?

a) 0-1 b) 1-2 c) 2-3 d) More than 3

Q.4 Which companys visi-cooler you have in your outlet?

a. PepsiCo b. Coca-cola c. own d. Both

Q.5 Which company gives more schemes, PepsiCo or Coca-

cola?

a. PepsiCo b. Coca-cola

Q.6 Which kind of soft drink your customers prefer to drink?

a. Juice-based b. Cola-based c. Milk-based

Q7. Which type of customers like soft-drinks according to

you?

a) Student b) Businessman


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c) Petty traders d) Self employed

e) Supervisors/Clerical f) Junior Executive Level

g) Middle Senior Level h) Housewife

Q8. Which kind of drink you prefer to have?

a) Packaged

b) Unpackaged

Q9. When you go to have a drink, do you have pre determined

flavor in the mind?

a) Yes

b) Choose on availability

c) Choose by coldness

Q10. On selecting a particular flavor, which of the flowing

attributes do you consider for? Please rank them in order.

a) Coldnessb) Availability

c) Advertisement

d) Taste/Quality of food

e) Retailer suggestion

f) Offer

Q11. What is an average customers average weekly

expenditure on Soft drinks items?

a) Less than 50

b) 50-99

c) 100-199

d) More than 200


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Q.12 Was the outlet maintaining the glow sign board, hanger

and flexi board effectively?

a. YES b. NO

Documents

Rahul Pepsi