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DECLARATION
I here by inform that this project is result of my own
work in the partial fullfilment of academic
requirement. It is sole property of SAROJ INSTITUTEOF TECHNOLOGY AND MANAGEMENT,
LUCKNOW and it is not allowed to be used, copied or
edited by any person a prior written permission has to
be taken from the appropriate authority.
ASHISH SRIVASTAVA
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AC KNOW LEDGEMENT
At the very outset of engaging myself in to the Project Report. I
would like to express my sincere gratitude to all those who extended their
not only to convey their best wishes but also to give me support on this hi-
undertone path. This Project Report on my eight weeks practical training in
KTL Pvt. Ltd.Lucknow is a part of my course curriculum of my MBA.
This project could not have been completed without timely
suggestion advice and co-operation of a lot of persons.
I am extremely thankful and pay my gratitude to Dr. Sanjay
Ojha(Director, SITM), Mrs. Shilpee Adhikari (HOD),Mr.
Gaurav Bajpai (Dept.HOD) and Ms. Pallavi Goel (Lecturer) SAROJ
INSTITUTE OF TECHNOLOGY AND MANAGEMENT, LUCKNOW
for his valuable guidance and support on completion of this project in its
presently .
I am greatly obliged to Mr. Anil Dube (Sale Manager, KTL Pvt.
Ltd. Lucknow) who accommodated me for training in this esteemed
organization.
I also acknowledge with a deep sense of reverence, my gratitude
towards my parents and member of my family, who has always supported
me morally as well as economically.At last but not least gratitude goes to all of my friends who directly
or indirectly helped me to complete this project report.
PREFACE
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There is a famous saying The theory without practical is
lame and practical without theory is blind.
This modern era is era of consumers. Consumers satisfy
themselves according to their needs and desires, so they
choose that commodity from where they extract maximum
satisfaction.
It has been identified that in the beginning of 21st
century the market was observed a drastic change. The
successful brand presents itself in such a way that buyers buy
them in special values which match their needs.
Marketing is an important part of any business and
advertisement is the most important part of marketing.Summer training is an integral part of the MBA and
student of Management have to undergo training session in a
business organization for 8 weeks to gain some practical
knowledge in their specialization and to gain some working
experience.
Our institution has come forward with the opportunity
to bridge the gap by imparting modern scientific management
principle underlying the concept of the future prospective
managers.
To the emphasis on practical aspect of management
education the faculty of SAROJ EDUCATION GROUP h a s
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with a modern system of practical training of repute and
following management technique to the student as integral part of
PGDM. in according with the above obligation under going
project in Lumbini Beverages Pvt. Ltd Lucknow. The title of
my project is A Brief Study of Effectiveness of Channel of
distribution of Pepsi product in Lucknow
Certainly this analysis explores my abilities and strength to
its fullest extent for the achievement of organization as well as mypersonal goal.
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TABLE OF CONTENTST it le page no. Declaration..i Acknowledgement..ii Executive
summaryiii Prefaceiv
Introduction to the Study5 - 11
Objective of the Study
Importance and relevance of the Study
Scope of the Study
Introduction of the Soft Drinks in India..12-22
History of Soft Drinks in India History of Pepsi Production Process
Product Manufactured and Main Consumer
Organizational Structure.23-27
History and Organizational Structure of LumbiniBeverages
Pvt. Ltd. Lucknow
A Theoretical frame work of Channel of distribution28-32
Channel of distribution of Lumbini Beverages Pvt. Ltd. ..33-55
SWOT Analysis56-58
Research Methodology used in the study.59-60
Data analysis and interpretation..61-74
Findings.75-76
Suggestions & Recommendation77-78
Limitations..79
Conclusion 80-81
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Bibliography82
Annexure..83-84
INTRODUCTION
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INTRO DUCTIO N TO THE STUDY
So there can be a satisfaction from the organization side and
When Mr. Rajeev Gandhi came into the power as Prime Ministerof India, then it was expected the liberalization of Indian
economy. This was the expectation of his modern concept
regarding every walk of life. When Pepsi has appealed on our
collective consciousness of few years ago to be more exact in
April 1989. When it set up operation for beverages snack foods
and export business. The establishment of Multinational
Company Pepsi was supposing to prediction in present Indian
business scenario.
Despite love for ones own motherhood and traditional
concept of Indian people it was assumed that it is very hard to
make and create taste and preference about soft drinks but despiteof having so many confusion, no one was able to assume
such a wide acceptance and it was PepsiCo. Who could be able
to penetrate in Indian soil and it was the Pepsi that has got not
only a place in Indian hospitality, but also taken place of
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traditional sharbat of lemon and sugar. And needless to say
Generation next has become the slogan of the day.
The first managing director was Mr. Ramesh Vanagal but
present is Mr. P.M. Sinha in India. During these years beverages
begin an exclusively franchise operating beverages now has five
company owned bottling operation (COBO) the business expects
to grow three times faster than the industry growth rate 1995 and
its vision is to become INDIAS BEST CONSUMERPRODUCT COMPANY in all aspect. The snacks business
has seen some major success and going for leadership too. Pepsi
is a leader in the snacks food business. The division plans to
introduction wide range of snakes in to Indian market in the next
three years. The restaurant business has also come Kentucky
Fried Chicken (KFC) has opened its first outlet at Bangalore Pizza
but it also expected to open restaurants shortly city wise. Whole
of the operations of Pepsi in India has made a rapid change in
Indian life style, which is resulting in fast food life.
Pepsi is a world leader in restaurant & soft drink whether it
is in London or in Ludhiyana, America or Ahamedabad,Berlin or Bombay, Paris or Patna, Manchester orMadras.Pepsi company has pumped in Rs. 300 crores ($ 95 million) as
fresh capital and has recently received permission from the foreign
investment board in Rs. 300 crores ($95 million) more. The
investment phase will continue and could add unto Rs. 700 crores
over the next three years. The figure is not cast in stone if
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volume exceeds according to expectation. They will increase
capital expenditure.
Apart from these things there is an expression which can
not verify easily that is Pepsi has made qualitative gains. The
foremost is its image from being perennially seen as a loosing
company its now got the image of being a winner. This major
turn around is not small achievement considering that since it was
established in 1989 taking the hard ship route prior toliberalization and weighed down by export commitments? Pepsi
has won more battles than it has lost.
In April 1993 Voltas and Punjab Argos stakes
were bought over converting Pepsi foods from a three way joint
venture to be a fully owned subsidiary week bottlers who did not
have the financial capacities were given massive support in the
form in interest free loans to upgrade their operating capacity . But
the strategy which has proved to be winner was the position, Pepsi
decided to take in Company Owned Bottling Operation (COBO).
For this another subsidiary PepsiCo. India holding was set up as
an investment vehicle, capitalized 95 million dollar. Within a
year 1994 Pepsi has bought over 5 bottlers including dukes in
Mumbai, which was running in Maharastra which has been
bought over from Voltas high speed imported lines with a speed
of 600 bottles per minute.
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OB JEC TIVE OF THE STUDY
Management is a course which teaches the student to get thework done properly from different available sources viz. man,
machine, material, money etc. the workers side who play a
significant role in achieving success. So far the fulfillment or the
management course, it gives emphasis to project work and
students learn how to plan in practical terms rather in terms of
theory only. Student tends to develop analytical and problem
solving skill. We necessary become motivated and competitive,
in fact all the learning that goes on for the two year term become
so much the part of our thinking that we developed a well all
rounded personality.
The following are the objectives and purpose of the study-
To know about awareness of the PepsiCo products of
Lumbini Beverages Pvt Ltd.
To know about the factors affect the sale of the Pepsi
product of Lumbini Beverages Ltd .
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To know about the PepsiCo brand product available in
the outlet.
IMPORTANCE AND RELEVANCE OF THE
STUDY
Cold drinks were started with the idea of quenching the
thirst of the persons traveling. It was also felt that reliable goodwater was not available everywhere. So people would really on
their packed bottle and with this idea its makers made these
drinks available mostly, at those places where water was not
available i.e. on highways and long distance trains.
But slowly and slowly with its beautiful taste these become
very popular and now they are available not only in the market
and street corners, but also people have started keeping it in their
house.
The credit of popularizing the soft drink goes to Coca Cola.
This was the drink which is liked by all ladies, gents and
children. Now days soft drinks are quenching thirst looks more
often; they are taken due to habits.
Gold Sport is considered as the first branded soft drinks,
established 53 years ago before all empowering Coca Cola faced
competitions and its euphoric image built up in the western
countries helped it get ready clientele and clamor. Parle Export
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Pvt. Ltd. is regarded as the first Indian Company introducing
Limca a leman drink complementary to it this has also
introduced Cola Pepone which was withdrawn in the face of
tough competition from Coca Cola.
When Coca Cola bid a Farwell in 1977, Indian market was
open for various new forward publishing different brands in the
markets. Parle people introduced their Cola, Thums Up with a
mighty saying Happy days are here again as if happy days wentaway with Coca Cola. Pure drinks of Delhi also w i t h o u t lasing
much introduced pure drinks were producing and marketing Coca
Cola earlier Campa Cola with Campa orange and Campa lemon.
Modern Bakeries entered the market with Double Cola Seven,
Mohan Makings with Merry & Plkup and McDowell with Thrill,
Rush and Sprint. This is Indian market where there was no
competition and high voltage advertising was on each one was
trying their best to become number one company with A class
product in the field of Soft Drink business. Now after a long gap
government of India had given permission to Coca Cola, which
joined with Parle to do business in India. They are trying their
best to regain prestige which it had before. The much rival of
Parle is Pepsi an American concern. It started business on the
Indian soil just a few years ago.
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Today, it has occupied 62% shares of Soft Drinks market in
India. Now Pepsi is going all out to prove that they are the best.
But now due to some factors competition
among them has become stiffen. So in this way the importantactivities have increased.
SCOPE O F THE S TUDY
The main scope of this study is to ascertain the
effectiveness of channel of distribution and various methods to
increase the sales volume of the concern. The methods include
regular information to the buyers creating a brand position in the
market and taking
measures to make the brand remain in its position. One of the
important aspects of this
study is also to increase the market segment for the product.
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INTRODUCTION TO THE SOFT DRINK IN
INDIA
History of the Soft Drink In India
History of Pepsi
Production Process
Product Manufacturing and Main Consumers
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Profile of Pepsi International
Pepsi is situated at Somers New York in U.S.A. Indra K Nooyi
is chairman and CEO of Pepsi.
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Calab bradham A North Carolina pharmacist concocted Pepsi-cola in
the year 1890 as a cure Dyespsia (indignation), in 1903, business
strategy worked & in 1905 he built in 1909 he had a New York
auditing agency. PepsiCo Food & Beverages International, a full
fledge co. earn s more then half of its global revenues from snack
foods & fast foods. PepsiCos major Business includes Pepsi foods,
KFC, pizza hut, taco bell & California pizzas is a world leader in
restaurant business also. PepsiCo gained entry to India in 1988 by
creating a joint venture with the Punjab government-owned Punjab
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Christopher Columbus as a traveler of world found a lot ofnew things which was not in the eye of the world community
which is now in our history but now if any one does travel to
whole part of world to get one thing in some form that is Pepsi.
Travel to any corner of the globe you are sure to spot a label
splashed in blazing blue, red and white becoming you to some
Sugared water. This dark coloured drink WillyMilly has today
become nothing but spot of an international anthem with young
and old, rich and poor wants for a sip and saying Yeh Dil Mange
More.
Gold Spot is considered as the first branded soft drink
established 53 years ago before all empowering Coca Colaentered the country to dominate the scene. It faced no competition
and its euphoric imaged built up in the western countries helped
it to get ready clientele and glamour. Parle Export Pvt. Ltd. Is
regarded as the first Indian company introducing Limca, a lemon
drink complimentary to there well established Gold Spot in 1970
which got moderate success. However, before this, he had also
introduced Cola Pepino which was withdrawn in face of tough
competition from Coca Cola.
When Coca Cola bid farewell in 1977, Indian market was
open for various cold drinks several companies came forward
publishing the different brands in the market. Parle people
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introduced their Cola Thumps Up with a mighty bang saying
Happy days are here again as if happy days went away with
Coca Cola.. Pure drinks of Delhi also without losing much time
introduced pure drinks were producing and marketing Coca Cola
earlier Campa Cola along with Campa orange and Campa lemon.
Modern Bakeries entered in the market with the Double Seven.
Moharn meakings with Merry Pikup and McDowell with Thrill,
Rush and Sprint in Indian market where there was nocompetition previously. A cut throat competition and heavy
advertising was on. Each one was trying their best to become
the number one company with A class product in the field of
soft drink business in India.
Now after a long gape the govt. of India has givenpermission to the Coca Cola to start their business in India.
HIS TOR Y OF PEPSI
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PepsiCo is a USA based company having its head quarters
at New York with the net worth of $30-40 million. The average
sales of the company are approx 90 million bottles per month.
Pepsi made it first international move in Russia in 1959. During
the Khrushchev era, within 32 years Pepsi emerged as the biggest
competitor for Coca Cola. Pepsi is available in 155 countries.
In any soft drink, on the globe Pepsi food is one of
the largest soft drink companies in the world with its headquartersin New York. It was invented by Pharmacist Culab D. Baradham
in 1898 to cure the disease Dyspepsia. It is from this word that
its name was related to Pepsi. Soon it entered the American
market as soft drink, which at that time mostly dominated by
Coca Cola, but soon Pepsi able to dominate the Cola market,
and there after it never looked back. Pepsi and Coca Cola are
engaged in ferocious cola war that has taken the whole world by
storm.
Pepsi entered the Indian soft drink in Kanpur in 1988 and
began its production in May 1990 and soon it was giving the
local contenders run for their money in soft drink market. It
comes out with dazzling marketing innovation that rocked the cola
market, like selling th e product throug h funct ion Pepsi
outlet s . Its adv er ti se me nt age nc y was Hindustan Thomson
Association (HTA). Its advertisement budget for 1995-1996 was
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valued at Rs. 24 crores which is likely to be increased manifold in
coming years.
Pepsi food is one of the largest and best foreign investments
in India. Till today it has invested Rs. 500 crores in India to
develop the local market. Pepsi has distributed exclusive
franchises in India to bottle its total product. There are 28 bottling
plant of Pepsi in India. Some are directly controlled by
Pepsi and rest is under various franchisees.In April 1997 the Pepsi cola international decided that Steel
City Beverage will cover south Bihar (now Muzaffarpur) only.
In this accordance Pepsi cola international decided to open
another bottling plant at Hajipur named Beverages Pvt. Ltd.
Hajipur which will distribute Pepsi product in whole Bihar.Ananda Marketing as a marketing division of Lumbini
Beverages Pvt. Ltd. Hajipur started functioning in April
1997; Managing Director of Lumbini Beverages Pvt. Ltd.Hajipur is Mr. Charan Khelani.
The director of this organization Mr. Ravi Khelani and Mr. Manoj
Khelani
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PRODUCTIO N PROC ESS
The process of manufacture of Aerated water (soft drink) like
Pepsi brand product is divided into mainly five parts such as
1. Water Treatment2. Syrup Making
3. Bottle Washing
4. Filling
5. Testing of Product
(1) W ater T r eatment: - Water treatment is very essential in softdrinks plants as the nature and quality of water varies fromplace to place. To set uniform and standard water theprocess of treatment is carried on. The water taken outfrom bore well by the help of motor pump and pipe line are
collected in storage tank where is pre chlorinated bychlorinators and by the help of pipe lines comes totreatment tank called coagulation tank where to this watersolutions of different strength of bleaching powder, ferroussulphate, hydrated lime are added through dosing pump toreduce alkalinity, hardness, kill the bacteria .The chemicalare mixed by mechanical stripper and then the suspendmattress settle down as sludge and clear water passes to
retention tank. From this tank, the water passes through
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sand filter containing fine sand and pebbles and carbonfilter containing granular carbon and finely through water
polisher, micron filter, and UV lamp to ensure clear andsanitary water for use. Further water used in bottle washerand boiler need softening .for this purpose ,the water fromstorage tank ,after passing through two filter beds containfine sand and granular carbon respectively comes to passthrough bad resin were it is softened .this soft water isessential to use in and bottle washer to reduce scaleformation inside the machines.
(2) Syrup Making:- For syrup making of particular brand,calculate quantity of sugar water activated carbon and highflow super cell known as filter aid taken in to sugar to entersteam and also filled by a motor with agitator. Sugarsyrup called raw-syrup is prepared by dissolving the sugarwith continuous stirring and heating by steam supplied byfired boiler. This hot syrup by the help of pump is filtered
through a filter press attached with a series of qualityfilter paper to separate out carbon particles. Clear hot syrupby the help of SS pipe lines passes through water P.H.E. forcooling and the then another P.H.E. circulated by glycol forfurther cooling. The chilled syrup comes to a mixing tankto use calculating of sugar quantity by Brix Hydrometer,concentrate added and mix thoroughly by a mechanicalStirrer fitted to the tank. This syrup is now finished syrup
ready for use. The concentrate mainly, the liquid partare kept in a cold store, the temperature of finishedsyrup is also maintained by air-conditioner. All thecontainers used for syrup making are cleaned and sanitizedby Soda-Bi-Crab, strong chlorine solution and hot causticsoda solution.
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(3) Bottle Washing: Bottle washing is an important part in soft
drink plant. The empty durable and returnable bottle used
are returned from market in plastic carats are fed to a bottlewashing machine (washer). The machine has double endsystem with circular chain to carry the bottles.Caustic soda Tri-Sodium Phosphate, Sodium Glausonateis adding to the caustic by the supplied. The Caustic tankfilled in with water heated by steam supplied by the boiler.The empty bottles enter to the hot Caustic tank in one endand after being cleaned by hot Caustic solution and finallywashed with water through spray jets fitted are dischargedin other end. The washed bottle proper inspections are SU319 and SU 853 used for conveyor cleaned and smoothrunning of chain carrying bottles.SU 260 and SU 773 is used for bottle cleaning, shining, andmold removing.
(4) F illin g : - Finished syrup and treated water lime arecommixed to a dosing pump which mixes syrup and waterwith ratio of 1:5 and the syrup mixed with water enters tocarbonator tank to mix CO2 gas, which is preserved incylinder for use. The cylinders are connected throughCO2 manifold to tank to use requisite quantity of gas.
To control CO2 pressure and temperature of liquid; weused recording control (Taylor). The syrup passed througha P.H.E. which is called itself by circulation of chilledglycol supplied chilling F-22 gas used. The syrup being chilled easily mixedwith CO2 gas and enters to filter for bottling. The filter is connected with
filling valves and lift cylinders. The lift cylinder functions by pressure of air
supplied by an air composer. The syrup is known as beverage in this stage is
filled in the cleaned bottles which are durable in nature and returnable by buyer
filling machine (filter) by a counter pressure of carbon dioxide gas. After
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beverage filled in bottle it goes to the crowner where with the help of crown
crocks the bottles are sealed (crowned) to project the carbonation, flavor,
outside contamination and spoilage. The finished products are coded by a
coding machine and inspected properly by inspection light while passing
through the conveyor where finished product are accumulated enters to carat
washer machine and it is washed moves through the conveyor where finished
product are accumulated.
(5) Testing of product:- Finally the finished syrup during
bottle is tested in laboratory to meet the parameters and
also to get a standard and quality products to maintain the
standard and information and uniformity in products the
sugar contents and carbonation in the bottle are checked in
regular intervals by Brix- hydrometers, Refrectometer and
pressure gauge. The dead weight tested is used to calculate
pressure gauge to know the correct pressure . TA & Ph aretested by digital Ph meter. Electronic digital balanced is
used to weight chemical to conduct test in lab. The purity
of CO2 is checked by CO2 purity tester.
The chlorine comparators. The microbiology test of the
product and water used in syrup making and production are
also done to ensure that the product is free from any
bacteriological contamination. To conduct the micro
test hot sterilizer incubator, autoclave, pads filter
membranes, media are produced and used.
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The Diesel generator is operated in case of electricity
failure for smooth operation of the plant. To drawn
electricity for the State Electricity Board the transformer is
used.
The s teps i nvo lved i n the Product ion Proce s s are:-
First the fork lift supplies the empty bottles which are
collected from the distributions.Then depalletising is done i.e. separating cases filled or
empty bottles from the wooden planks.
Uncasing is done by separating empty bottles from thecases/carats.
Empty bottles are then fed into the bottle washer wherestream with some chemical is used for washing.
Washed bottles are then send to the filler where premix
(Composed of syrup, treated water bulk CO2) is filled in it.
The whole concentrated is chilled with glycol before
filling and then crowning is done.
The filled bottles are passed through inkjet coder for
printing price and date.
Then again the filled bottles are send for final light
inspection and from there they are collected on a table.
Lastly the filled bottles are arranged in the crates (casing) and then
palletizing is done for storing it in the warehouse.
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PREPARATION OF SYRUP
Treated water + Sugar = Flavor
PRO DUCT MA NUFAC TUR ED
The product manufactured by Lumbini Beverages Pvt.
Ltd. are very limited ranges as it is not independent to diversity
its products. It is a unit of Pepsi food Pvt. Ltd.
which supplies concentrates for drinks. They are:-
Products Quantity Colour Flavour
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Pepsi
Mirinda
MirindaMirinda
7 Up Mountain
Dew Slice
Lehar soda
Pet
Pet
Can
Aquafina
(Mineral Water)
300 ml, 200ml
300 ml, 200ml
300 ml, 200ml
300 ml, 200ml
300 ml, 200ml
300 ml, 200ml
300 ml
300 ml
1.5 lt.
2 lt.
330 ml
1 lt.
Brunt sugar
Sun-set
TetrazineTetrazine
Colorless
Colorless
Sunset
Tetrazine
Brunt sugar
Brunt sugarBrunt sugar
Colorless
Cola
Orange
LimeMango
Lemon
Lemon
Mango
Lemon
Cola
ColaCola
White
C ONSU M E R S
The main consumers of these products naturally areyouth. Besides the direct consumer it is also used for the some
purpose of providing it to the mass by hoteliers, restaurantowners and various other soft drink peddlers. These products arethe choice of the new generation. Thus it can be said that it is aproduct of mass consumption.
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HI ST O R Y AND ORGANIZATIONAL ST R UCTU R E OF
L UMBINI BEVER AGE S PVT. L TD.
Hi s tory of Lu m b ini Beverages P vt. Ltd.
Steel City Beverages Pvt Ltd. is situated at Adityapur
Kandra Road in Jamshedpur. Rushabh Marketing Pvt. Ltd.
is the marketing division of Steel City beverages. Steel City
beverages Pvt. Ltd. is a mother unit and its whole marketing
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activities are done through Rushabh Marketing Pvt. Ltd. Steel
City beverages is one of the Pepsi foods Bottling plants in the
country and one of the three in Eastern India. The other two
Calcutta and Guwahati. But from 01-04-1997 Pepsi Foods
Ltd. India determines to open another bottling plant which is
situated at Hajipur namely Lumbini Beverages Pvt. Ltd. It is
only for North Bihar.
Steel City beverages Pvt. Ltd. was established by LateMr. Dharam Chand
Kamani in the month of June 1967. The machineries of its mainplant were imported in
1968 and production started in March 1969.
Before the establishment of Steel City beverages Pvt. Ltd.Coca Cola was not much popular among people of Bihar state as
pure soft drink. Because at that time the bottles of Coca Cola was
supplied by the outsiders who were unable to make Coca Cola
popular in Bihar. So after considering the needs and desires of
people Mr. Dharma Chand Kamani brought in Bihar. With this
effort Coca Cola become popular among the people of Bihar.
But in 1977 due to the sudden change I the policies of the
Government the import license for the concentrate of Coca Cola
was stopped. So Steel City beverages Pvt. Ltd. had to walk over
to Indian Concentrate Companies. They were modem food
industries supplied concentrate of double seven and non ice
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cream soda. In 1983 the company introduced a cola drink
THRILL of Mc-Dowell & Co. Ltd. in the place of Double
seven and triangular and in the very next year two soft
drink RUSH an orange flavored and SPRINT as lemon
flavored of Mc-Dowell & Co. Ltd were introduced.
Before some months Ananda Marketing Pvt. Ltd. was the
marketing division of Lumbini Beverages Pvt. Ltd. But at this
time, Lumbini Beverages Pvt. Ltd. is doing marketing with its
own name.
Thus it can be seen that Lumbini Beverages Pvt. Ltd. has
made tremendous move towards the introduction and
development of soft drinks industries on the whole, and North
Bihar in particular. It has made production of perfect hygiene and
standard Soft
Drink as main objective.
An ideal organizational structure facilities management and
the operation of the enterprise and it help the organization in
achieving its goal.
In a simple term in various parts or component are
interrelated or interconnected and this way it is the established
pattern or relationship among various function of the
organization in the established manner.
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The managing director holds the top position. At present, the
managing director of Lumbini Beverages Pvt. Ltd. is Mr. Charan
Khilani. But the overall policies regarding management decisions
and all executives function or performance look after by the day
to day decision and general administration as well as management.
The MD has given the power of attorney and authority to director
Mr. Ravi Khilani. Mr. Ravi Khilani who is well advised by the
MD.The director Mr. Ravi Khilani looks after all functional
departments that sales production, account, personnel and
purchase. Though the manager all the functional departments
has specially designated as head of personnel department.
Every department has to report directly to the
managing director and is responsible to his only for working in
spite of this all departments is under the control of the director
Mr. Ravi Khilani. Because he is the Chief Executive of the
company cited
earlier. The overall organizational structure can be shown as:
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OVER ALL ORGANIZATIONAL
STRUCTURE OF
LUMBINI BEVERAGES PVT. LTD.
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The marketing manager is in charge of all marketing activities
i.e. sales promotion, publicity and advertisement, marketing
study and shipping. But the main function of the marketing is to
exercise the control over the channel of distribution.
The marketing manager is assisted by sales executives, city
sales executives and rural sales executives and sales executive of
shipping department as follows:-
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FRAME WORK OF CHANNEL OF
DIST RIBUT ION
A THEORETICAL FRAME WORK OF
CHANNEL OF DISTRIBUTION
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Marketing channels are sets of interdependent
organization involved in the process of making a product or
service available for use or consumption.
The main objective of the marketing process is to distribute
the products to the actual users. This function involves a
number of sub-functions to be performed by a producer or
manufacturer. These two functions are most important first, the
creation of demand is made through the process of advertising andsales promotion activities. On the other hand the distribution
through the channels of distribution. The decision relating to the
channel of distribution is a very important decision from the
firm point of view because the selected channels affect
considerable other marketing decision. Such decisions are of
long term nature and exercise their impact on the cost structure
of the firm also.
By channel distribution mean the intermediaries or the
process through which the goods products are transferred from the
producer to the ultimate users.
Now a day any of the producers possibly do not sell their
goods directly to the final users. There are a lot of intermediaries
between producers and consumer, bearing a variety of name
performing various k inds of funct ion . Some
intermediaries l ike wholesalers and retailers buy and resale
taking the bill. They are known as merchant middle men and
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other are brokers, representative sales agent who seeks or search
for customers and negotiate on the behalf of the producer but do
not take of goods. These are called as middlemen.
The manufacturer and its distributive outlets share common
objective to sell the manufactured products at a profit. No doubt
its objective differs with the marketing circumstance. Even
though many variation of specific objective fits into some
categories. These are as follows:- To built distribution network loyalty
To stimulate distribution
To develop managerial efficiency in distribution organization
The channel of distribution is a structure which organized and
presents a choice among alternative channels of distribution of the
different marketing situations faced by retailers, whole sellers and
producers with in the structure. It may be considered as a series
of function which must be performed in order to make producers
efficiency.
To bearing maximum profits of all institutions concerned a
channel of distribution should be treated as a unit of total system
of action. The activities of the manufacturer need to be
coordinated with these middlemen used in the distribution of given
product.
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The important of middlemen in channel of distributional can
be over emphasized. It is that who-
1. Collects concentrate the output of various producers,
2. Subdivides these into lot desired by the customers gathers
various items together in the assortment wanted and
3. Disperses the assortment to consumer industrial buyers.The role of middlemen that of specialist in concentration
equalization and dispersion besides he side in the creation of thetime from and procession utilities.
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DECISION MAKING FOR CHANNEL DISTRIBUTION
The marketing executive must undertake to following stepsin order to establish
the channel of distribution for a company.
1. He/She must understand the retail and wholesales market
and type of middlemen available in both.2. He/She must understand the various conflicts which
continually exist between and within the channel.
3. He/She must select the general channel to be used keeping
in mind the goals of the company marketing programme and
the job to be done by distribution system.
4. He She must take decision regarding be intensity of the
distribution (i.e. The number of middlemen) to be used each
level and each market.
5. He/She must select the specific firms which will handle
his product and then manage the day to day working
relationship with them.6. He/She must determine the methods and the procedure in
firms (i.e. use of the transportation and warehouse facilities
and services in firms making programme) in the physical
distribution of the product.
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Types of Marketing Channels
1. Direct marketing channel: A marketing channel that has nointermediaries level
2. Indirect marketing channel: Channels containing one ormore intermediaries
Customer Marketing Channels
Channel 1. Manufacturer..Consumer
Channel 2. ManufacturerRetailerConsumer
Channel 3. Manufacturer...Wholesaler.RetailerConsumer
Channel 4. Manufacture.WholesalerJobberRetailer.Consumer
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C HA NNEL DYNA MIC S
Distribution channel do not stand still. New wholesaling
and retailing institution emerge and new channel system evolves.
There are four types of marketing channels.
1. C onvent ional D is tr ibut ion C hannel
A Channel consist one or more independent wholesaler and
retailers. Each is a separate business seeking to maximize
its own profits even if this goal reduces profit for the
system as a whole. No. Of channel members has
complete or substantial control over the other members.
2. V ert ical Market ing C hannel
This is most recent marketing channel. A distribution
channel system as producers, wholesaler and retailers act as
unified systems. One channel member, the channel captain
owns the others or franchises them or has so much power
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that they all co-operate. The channel captain can be the
producer, the wholesaler or the retailer.
3. H or izontal Market ing C h a nnel
A distribution channel system in which two or more
unrelated companies put together resources or programmes
to exploit an emerging marketing opportunity.
4. Mu lti C hannel Market ing
In the past, many companies sold to single market through asingle channel. Multi channel marketing occurs when asingle firm uses two or more marketing channels to
reach one or more customer segments.
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These distributors selected on the basis of assurance given
by them regarding the minimum sales which they have to
maintain annually. The selection is also done on the basis of the
financial position and reputation of distributor in the market. As
for example in appointing a distributor first engaged in soft drink
business second priority is given to those people who are in
cigarette selling business. Depending upon the market, each
distributor in the initial stage has to deposit some security money.
The retailers are selected by the distributor fixed criteria for the
selection or appointment or retailers from the side of the
distributor. Any one li ke Panwala , Cigarettewala or any other
shopkeeper can have the stall for the sale of soft drinks and they
are called retailers or outlet owners. They have to give assurance
to the concerning distributor for better sale and at the time of
taking delivery they have to deposit the security i.e. the charges if
the empty bottles with specified retailers purchasing price. The
charges if the empty bottles with specified retailers purchasing
price. The distributor at first has to seek the permission of salesdepartment for the number of cases of soft drinks required by
them. After getting the proper authority from sales department
paying therequisite amount either cash or demand draft.
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W A R E H OU SI NG
Every company has to store its finished goods until theysold. A strong facility is necessary because production and
consumption cycles rarely match.
Warehousing is not a simply storing activity but a
package of services that enables the smooth running of the
industry.
The stores must be in constant touch with the use
department in order to provide uninterrupted services to the
manufacture and its decision since working capital is locked up in
the warehousing stores in equal to money.
The stores functions can be organized in the
following manner:-a) To receive raw material components
equipments etc.
b) To meet the demand of use department by
issuing the order
c) Accounting the transaction properly.
d) Minimizing obsolescence surplus and scrap by right
identification and using correct preservation method.
The company supply finished products frequently to
different distributors as per the demand.
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Every distributor keeps a minimum stock of different
products of the product line so that the uninterrupted supply could
not affect.
In the industrial sector service of optimization where boils
down to any exercise of optimization where limited available
resources are to be distributed equitably.
The problem arises from the material that are in stock the
form of capital cost, storage loss, pilferage obsolescence,insurance, handling, documentation etc. Services level that can be
maintained and hence the concept stores in money should be
understood
by every body in the organization.
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IN VENT ORY D ECISION
(1) Branding and Packaging
Out of the total market activities some are directly
performed and controlled by Lumbini Beverages Pvt.Ltd. itself some are followed according to the
standing instruction of Pepsi Foods Pvt. Ltd.
So far as the process of branding and packaging
is concerned the Lumbini Beverages Pvt. Ltd. Alongwith the authorized bottle in India adopt the same pattern.
(2) Wholesaling
Wholesaling includes all the activities involved in
selling goods or services to those who buy for resale
or business use. Manufactures use wholesalers because
wholesalers can perform function better and more cost
effectively than the manufacture can. These functions are
not limited to selling and promoting, buying and
assortment building bulk barking, warehousing,
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transporting financial risk bearing dissemination of
marketing information and provision of management
services and consulting.
Like retailers wholesaler must decide on target market,
product assortment and services promotion and place. The
most successful wholesalers are those who adopt their
services to meet and target customers needs, recognizing
that existingto add value to the channel.
(3) Retailing
Retailing includes all the activities involved in selling
goods or services directly to find consumer for their
personal non-business use. A retailer or retail store is any
enterprise which sales volume comes primarily form
retailing.
All marketer retailers must prepare marketing plans that
include decision on target market.
So the marketing channels can be viewed as a set ofinterdependent organization with high potential for conflict.Then why would any business chosen to become part of
channel system.
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MARKETING STRATEGY
Marketing Strategy is the complete and unbeatable plan designed
specifically for attaining the marketing objective of the firm. The
market objective indicates what the firm indicates, what the firm
wants to achieves, the marketing strategy provides for achieving
them.
The marketing strategy is not just idea. It is a well outlined plan, andthere are different ways to formulating it. Basically formulating of
marketing strategy consists of two main steps.
Selecting a target market. Assembling the marketing mix. Actually,
the target marketing and marketing mix together constitute the
marketing strategy of the firm.
When the Pepsi food company entered in the Indian soft drink
market, the market was already prevailed by coke and previously it
was Parle. Pepsi tried to establish in India with a unique marketing
policy. Pepsi took into consideration of youth segment target market.
Though the advertisement of Pepsi highlighted the style of living of
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young generation with different walk of life. Pepsi brought in its
advertisement different stalwarts personalities from fields like
young cine stars, sport stars and famous personalities from different
fields. It has attracted the young generation and of course increase
the sale of Pepsi, Pepsi also organized many national and
international sports events to attract the young generation.
MARKETING MIX OF L.B.P.L.
A product, place, price and promotion (4ps) that the firm blends to
produce the response it wants in the target market. These are the
following 4Ps. Products:- That could meet the identified needs of chosen
consuming groups.
Price:- Product price are fixed by company according to
competitors product price.
Place:- It performs various functions like transportation,warehousing, channel management etc. so the product could
easily reach the consumer.
Promotion:- The firm carries out a no. of measures like
personal selling, advertising and sales promotion programmed
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with view to communicate to the consumer and promoter of
the product.
It is the mechanism to achieve the consumptions of marketing
process, striking the level of price that is accepted to the firm as well
as consumer.
PepsiCo Cold Drinks
7UP - Mood Ko Do Lemon Ka Lift
Brand History
7UP, the refreshing clear drink with natural lemon and lime
flavour was created in 1929. 7UP was launched in India in 1990
and its international mascot Fido Dido was used for advertising in
1992 to position the brand as a cool drink for youngsters. Fido
became an instant hit with his trendy look, laid back attitude andrefreshing take on life. During the brands early years in India,
7UP gained market leader status in the lemon lime category by
being one of the first to be nationally distributed as well as being
marketed as a healthier alternative to other soft drinks.
Brand Advantage
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For the past 2 years, 7UPs ambition as a brand has been to
capture and own the lemon refreshment territory within the clear
lime category. Lemon has proven to be a clear and relevant
differentiator for the brand. Further, it has allowed the brand to
ladder up to an emotional payoff of uplifting refreshment.
After establishing itself as The Lemon Drink ", in Jan 2009,
7UP continued to build further on the theme of mood upliftment
with its new tagline "Mood ko do Lemon ka Lift
7UPs brand communication is premised on the products natural
lemon flavor , guaranteed to provide uplifting lemon refreshment
that raises ones spirits.
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Mountain Dew -Darr Ke Aage Jeet Hai
Brand History
The main formula of Mountain Dew was invented in Virginia,
named and first marketed in Johnson City, Tennessee and
Knoxville, Tennessee in 1948.
In India, Mountain Dew set the soft drink category ablaze in 2003
with their iconic launch campaign Cheetah Bhi Peeta Hai.
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Brand Advantage
It is a soft drink that exhilarated like no other because of its
daring, high-energy, active, extreme citrus taste. Challenge, a can
do attitude, adventure and exhilaration is deeply entrenched in its
brand DNA and the brand has always celebrated the bold and
adventurous spirit of the youth.
This exhilaration and excitement of Mountain Dew has always
been reflected in the high-adrenaline advertising of the brand thatconnected it to outdoor adventure.
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Pepsi - Yeh Hai Youngistan Meri Jaan
Brand History
Pepsi is a hundred year old brand loved by over 200 million
people worldwide. The largest single selling soft drink brand in
India is the ubiquitous'socialiser'at every occasion.
Youngistaan loves it. 200 million people worldwide love it. But
what has made Pepsi the single largest selling soft drink brand in
India is actually a formula concocted a century ago in a far away
continent.
1886, United States of America. Caleb Bradman, the man with a
plan, got on to formulate a blockbuster digestive drink and
decided to call it Brads drink. It was this doctors potion that was
to become Pepsi Cola in 1898, and eventually, Pepsi in 1903. Pepsi has always played on the front foot and since its inception
has come out with revolutionary concepts like Diet, 2L bottles,
recyclable plastic cola bottles and the enviable My Can.
Brand Advantage
Pepsi has become a friend to the youth and has led many youth
cultures. Youngsters over the generations have grown up with
Pepsi and share an emotional connect with it, unlike any other
cola brand. Be it parties, hangouts, or just another day at home, a
day is never complete without the fizz of Pepsi!
Pepsi, Cricket and Bollywood have been joined at the hip since
the beginning. Shah Rukh Khan, Sachin Tendulkar, Saif Ali Khan,
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Amitabh Bachchan, Kareena Kapoor, Priyanka Chopra, Virender
Sehwag, M. S. Dhoni, John Abraham, Ranbir Kapoor and
Deepika Padukone are a few celebrities who will go any length for
a chilled Pepsi.
The Pepsi My Can is undoubtedly the most popular cola pack of
all times. It is not just a pack but a style statement for todays
youth.
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Mirinda Weekend Aaye Tho Pagalpanti Chaye
Brand History
Mirinda is an international soft drink brand from Spain that was
launched in India in 1991.
Mirinda has always been about a great irresistible orange taste,
which is now synonymous with the brand. These were
communicated through our great of Mirinda Men in 1996 or
with the campaign of Taste pe Atka, Mirindaaaa in the year
2000 or Taste Aisa Chaye Character Fisla Jaye in 2003.
Mirinda then evolved to ladder up the great taste to great fun with
another spate of memorable campaigns of Fun Ka Naya Mantra,
Mirindaaaaa starring Asin & Zayed Khan in 2007 & Pagalpanti
bhi Zaroori Hai campaign with Asin in 2008.
In 2009, Mirinda became synonymous with Orange as the core
of the brand with the campaign of Orange Dikha toh Mooh Bola
Mirindaaaaa.
Brand Advantage
Now when we think Mirinda, we think orange. But this soft drink
brand has launched many other fruit flavours from time to time;
Mirinda Lemon was launched in 1998 with memorable campaign
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Zor Ka Jhatka Dheere se Lage starring with Amitabh Bachchan
& Govinda. Mirinda has also launched many other flavors like
Apple & Batberry, as innovative flavor offerings for the evolving
consumer.
46
In 2008, the brand decided to up the ante on the brand from a
being led by physical attribute-taste, to deliver a brand philosophy
that resonates with the audience. Now, Mirinda's bold and vibrant
color, great orangey taste and sparkling bubbles encourages one to
be more carefree, spontaneous and playful.
With an endeavor to give our consumers a great tasting product to
delight them continuously, we have reformulated & improved its
taste - first in 1996, then in 2002. And whats more, Mirinda is
now made without any artificial flavor in it!!!
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Slice - Pure Mango Pleasure
Brand History
Slice was launched in India in 1993 as a refreshing mango drink
and quickly went on to become a leading player in the category.
In 2008, Slice was relaunched with a 'winning' product
formulation which made the consumers fall in love with its taste.
With refreshed pack graphics and clutter breaking advertising,
Slice has driven strong appeal within the category.
Brand Advantage
With the launch of Aamsutra campaign in 2008 along with a
winning taste & most appealing pack graphics, Slice created
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disruptive excitement in the category and celebrated mango
indulgence like no other.46
While other players have portrayed mango as a simple and
innocent fruit, Slice celebrates the indulgence and sensuality of
consuming a Mango. The creative idea Aamsutra communicates
the art of experiencing pure mango pleasure through the taste of
Slice.
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Aquafina - The Purest part of you
Brand History
Aquafina was first launched in USA in the year 1994 and with its
unique purification system and great taste; Aquafina soon became
the best selling brand in the country.
In India, Aquafinas journey began with the Bombay launch in
1999 and it was rolled out nationally by the year 2000. On the
strength of its brand appeal and distribution, Aquafina has become
one of India's leading brands of bottled water in a relatively short
span.
Brand Advantage
Aquafina goes through a 5 step state-of-the-art purification
process to give consumers pure water and perfect taste every time.
Aquafina has been built through refreshing and edgy advertising.
The What a Body campaign has enabled the brand to drive
modern, premium, and youthful brand imagery in an otherwise
undifferentiated category.
Bottled across India in 19 plants, Aquafina ensures its availability
across more than half a million outlets. To cater to varied
consumer needs and occasions, it is available in various pack sizes
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like 300ml, 500ml, 1 ltr, 2 ltr bottles and in bulk water jars of
25lts.
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ADVERTISING & SALES PROMOTION IN L.B.P.L.
Advertising and sales promotion activities play a vital role in entire
marketing efforts. Without these aspects a quality product can not
survive in the market. Advertising and sales promotion tools are
most essential for the modern global marketing. This chapter has
therefore been devoted to the studies of advertising and sales
promotional activities in Lumbini Beverage Pvt. Ltd.
The two basic objectives for carrying out such various promotional
activities by Lumbini Beverages Pvt. Ltd. is To generate moresales as well as to create and maintain an image of its product
L.B.P.L. carries out its promotional activities as controlled and
integrated programmes of communication and material design
present its soft drink to the perspective customers. It also helps in
communicating the need satisfying of soft drink to facilitate the sales
eventually to contribute towards the profit in long run.
The tools used by L.B.P.L. for fulfilling the various purposes of
its promotional activities are the following:-
Food N Fizz
Space Club
Payaas bujhao profit badhao
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Agreement
GRB (Glass return bottle).
PROMOTIONAL ACTIVITIES (FOR RETAILERS)
Promotional activities consist of various means of communicating
persuasively with the target audience. The important methods are:
Advertisement:-Where an identified sponsors pays media (such as TV)to transmit to target consumer.
Personal selling:- Where sales representative employed by the firm
engage in interpersonal communication with individual consumers
and prospective customers.
Sales promotion:- Where the market utilizes displays, demonstrations,premiums, contests or similar devices.
Publicity and Public relation:- help to stimulate supportive news items
about the firm and its product that have greater credibility with
public than advertisement.
Of all the methods of promotional activities that constitute the
promotion mix, sales promotion is the only one method that makes
use of incentives to complete the Push-Pull promotional
strategy of motivating the sales force, the distributor and the
consumer transacting a sale.
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According to American Marketing Association sales promotion
refers Those activities other than personal selling, advertising and
publicity, that stimulate consumer purchasing and dealer
effectiveness, such as display, shows and exhibition, demonstration
and various other non-recurrent selling efforts not in ordinary.
Sales promotion is also known by the name of Extra
Purchasing Value (E.P.V.).
Product Performance of Pepsi
Targeting product comparison Product availability Pricing of products Pepsi Performance in comparison
Comparative Products
SL
No.
Major CSD Brands
Flavor PCI CCI
1. Cola PepsiCoca-Cola,Thums Up
2. Clear Lime7Up, Mountain
DewSprite
3. CloudyLime Mirinda-Lime Limca
4. Orange Mirinda Fanta
In above table, I have shown product target in the market. Both
companies try to substitute each-others product in the market. When
a company doesnt fulfill the demand of market then other
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companies substitute that product with their own product. In the
market, offen it seen that consumer demands a product according to
his desire, but due to lack of supply he switch over to substitute
product. So, companies always want to come out with substitute
product for enlarging their market share.
Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is
substitute for 7UP and Mountain Dew, Fanta is substitute for
Mirinda & Limca is substitute forMirinda Lime.
Products Availability of Pepsi
SL
No
.
Product
s
200m
l
250m
l
300m
l
330m
l
500m
l
600m
l
1000m
l
1200m
l
2000m
l
1. Pepsi - - - - -
2. Pepsi diet - - - - - - - -3. Pepsi
Gold- - - - - - - -
4. Mirinda - - - - -
5. MirindaLime
- - - - - - - -
6. M. Sorbet - - - - - - - -
7. 7UP - - - - -
8. M. Dew - - - - - -
9. Pepsi Can - - - - - - - -
10. 7UP Can - - - - - - - -
11. MirindaCan
- - - - - - - -
12. M. DewCan
- - - - - - - -
13. Diet Can - - - - - - - -
14. Slice - - - - - -
15. Aquafina - - - - - - - -
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16. Tropicana - - - - - - -
17. EverestLehar
- - - - - - -
Pepsi Products Price list for Customers
SL
No.Product 200ml 250ml 300ml 330ml 500ml 600ml 1000ml 1200ml 2000m
1. Pepsi 8 - 12 - - 20 - - 502. Pepsi diet - - - - 20 - - - -3. Pepsi Gold - - - - - 25 - - -4. Mirinda 8 12 - - 20 - - 505. Mirinda
Lime8 - - - - - - - -
6. MirindaSorbet
- - - - - 25 - - -
7. 7UP 8 - 12 - - 20 - - 508. Mountain
Dew8 - - - - 20 - - 50
9. Pepsi Can - - - 25 - - - - -10. 7UP Can - - - 25 - - - - -11. Mirinda Can - - - 25 - - - - -
12. M. DewCan - - - 25 - - - - -13. Pepsi diet
Can- - - 25 - - - - -
14. Slice - 10 - - 22 - - 45 -15. Aquafina - - - - - - 12 - -16. Tropicana 12-18 - - - - - 60-82 - -17. Everest
Lehar- - 5 - - 12 - - -
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STUDY ON R ETAIL ER S
Retail Shop type
I. Monopoly Retail Shop : The shop selling only one companysProducts
II. Mi x Shop : The shop selling many companiesProducts
The retailers can build a great deal of goodwill for thefirm. The marketing strength depends on the strengths of retail
dealers.
Research has conduct survey on different types of outlet like
bakeries, cold drink parlor, Booth and general stores etc.
According to his survey, the major reasons for selling Pepsi
products are:
(1) Brand Image 18%(2) Customer Demand 20%(3) Profit Margin 05%(4) Advertisement 30%(5) Good Quality 10%(6) Sales Promotion for Retailers 07%
(7) Sales Promotion for Consumers 10%
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SWOT ANALYSIS
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SWOT ANALYSIS
STRENGTHS:
Lumbini Beverage Pvt. Ltd. is Franchise Owned Bottling
Operation(FOBO) of worlds most famous soft drinks Pepsi
Co.
LBPL uses state of the art and fully automatic machines and
technology for the production and bottling of soft drinks. It has very strong network and built market and currently
holds all the parts of the state.
It has wide range of product varieties & takes back the
leakage, burst bottles etc.
WEAKNESSES:
No cost cutting program for the products.
Promotional activities in the rural market are not upto the
mark as compared to the urban market.
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Brand Pepsi in cola flavor is one of the popular lagging
behind its nearest competitor, only due to high sugar content
and less thrilling taste.
Not availability of all the products on demand.
OPPORTUNITIES:
Although in the cola market there are many competitors, Pepsi
still has the opportunity to enlarge its market share because the
cola in the market is quite monotonic. Most of the end user isyoung people. There are still some people who do not like the
taste of the cola. So we can try to provide some other taste of
cola such as adding some lemon juice. We can change the
flavor in order to meet different taste of different people.
THREATS:
As to the threats, all of us know that Pepsi-Cola and Coca-
Cola have had the competition for about 80 years. Although
Pepsi-Cola have won several times during this competition, the
market share of Pepsi-cola is a little bit smaller than Coca-
Cola. There is another threat nowadays. Some local cold drink
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such as Sudha dairy and Amul dairy cola have taken their
feet in the market.
One of the products of their competitor in Clear lime &
Cloudy Lime flavor as a very good market share due to its
taste.
Coca-Cola is now spending more and more to boost up thesale & market share.
Research
Methodology
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RESEARCH METHODO LO GY USED IN THE
S TUDY
Marketing Research is the systematic designing, collection,
analysis, and reporting of data and finding relevant to a specific
marketing situation facing the company.
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Within the time limit, I tried my best to select the sample
representative of the whole group. During my training, I
maintained different chart for different routes during my dealer survey. I
have collected data from the Distributor and Retailers of Patna .
D a ta So u r ces
Primary data collection involved distributors, retailers.Research Approaches : Survey
Research Instrument : Interview
Sa m p li ng Pl an
Research Design : Exploratory
Sampling Unit : Retailers
Sampling size : 100
Sampling Areas : Lucknow
Sampling Techniques : Simple Random sampling
Contact Method : Personal Interview
In interview schedule I used multiple choice questionand ranking system questions.
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DATA ANALYSIS AND
INTERPRETATION
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Q. 1 .How you came to know about Pepsi
Brand Products?
Mode No. of Respondent Percentage
Radio 32 32%TV 46 46%Newspaper 12 12%Friends 6 6%Others 4 4%Total 100 100%
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It has been found that 32% percent retailer know about the Pepsi product through the
Radio, 46 % retailer know about the Pepsi product through the TV , 12% of the retailer
know about the product through the Newspaper ,6% of the retailer know about the product
through the friends and 4% retailer know about the product through the other things .
Q.2. Monthly sales (in Rs.)
Monthly Sales (InRs)
Respondent Percentage
Les than 5000 12 12%5000 to 10000 16 16%10000 to15000 40 40%Above 15000 32 32%Total 100 100%
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It has been found that 12% Distributor/Retailer are monthly sales (Rs)Less than 5000, 16%
Distributor / Retailer are monthly sales (Rs) 5000 to 10000 , 40 % Distributor / Retailer aremonthly sales (Rs) 10000 to 15000 and 32% Distributor / Retailer are monthly sales (Rs)
above 15000.
Q. 3.Which brands of soft drinks are available in the outlet?
Soft Drinks Available in the Outlet
Pepsi cola 22%Mirinda 12%Mirinda (l) 8%7UP 24%Slice 16%
Mountain Dew 18%
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Total 100%
It has been found that 22% Pepsi Cola soft drinks are available in the outlet because the
taste of the soft drinks is very sweet so mostly customer prefer Pepsi Cola, 12% and 8%Mirinda and Mirinda(L) soft drinks are available in the outlet, 24% 7Up are available in
the outlet, 16% Slice are available in the outlet because it is a Mango flavors soft
drinks.18% Mountain Dew are available in the outlet.
Q. 4. When a customer comes to your shop which brand of softdrinks
He/she demands? (Rank them).
Brand of soft Drinks Respondents Percentage
Pepsi 46 46%Coca cola 38 38%
Other 16 16%
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Total 100 100%
It has been found that 46% customer demand Pepsi because the product of the Pepsi brand
is very sweet and Mango flavor product Slice mostly children like, 38% customer demandsCoca Cola because the product sweet is minimum amount and mostly like sugar Patient and
16% customer demand other Brand (Rank them).
Q. 5.Number of carets sold per month of soft drinks.
Number of Carets
Sold in per month
Respondent Percentage
0-50 Carets 4 4%50-100 Carets 22 22%100-150 Carets 42 42%150-200 Carets 32 32%
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Total 100 100%
It has been found that 42% Retailers told that 100 -150 number of carets sold in per month
because they Retailers belongs to very crud area so customer also be use the soft drinks,32% retailers told that maximum 150-200 carets sold in per month, 22% retailers told that
50- 100 carets sold in per month and 4% retailers told that 0-50 number of carets sold in per
month because they retailers also belongs to ruler area.
Q .6.What is the position delivery of Pepsi products?
Position Delivery of Pepsi
product
No. of Respondent Percentage
Very Good 30 30%Good 42 42%
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Bad 18 18%Worst 10 10%
Total 100 100%
It has been found that 30 % delivery of Pepsi products are very good , 42 % delivery of
Pepsi products are good , 18% delivery of Pepsi product are bad and 10 % delivery of
Pepsi product are worst .
Q. 7.What is the frequency of the visit of Pepsi executive?
Frequency of the Visit of Pepsi
Executive
No. of
Respondent
Percentage
Daily 30 30%Alternate Day 34 34%
Weekly 22 22%
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Fortnightly 14 14%Total 100 100%
It has been found that 30 % distributor visit of Pepsi executive Daily, 34 % distributor
visit of Pepsi executive Alternate Day, 22% distributor visit of Pepsi executive Weekly
and 14% distributor visit of Pepsi executive Fortnightly.
Q.8.Which types of outlets are selling more?
Types of outlets No. of Respondent Percentage
General Store 24 24%Restaurant 14 14%
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Betel Shop 10 10%Sweet Shop 36 36%
Other 16 16%Total 100 100%
Out of 100 respondents I found 36 % sale of Pepsi on sweet shops that are maximum
because every sweet shop use the Visi cooler for the own product protection and a lot of
customer want to more cool soft drinks. 24% sale of Pepsi on the general store, 14% on the
restaurants because a lot of customer prefer take drink in restaurant because that place is
very peace, 10 % on the Betel shop and 16 % sales on the others shops respectively.
Example-Medical Store, Cyber Caf.
Q .9.Which factors affect the sale most?
Factors affect the sale No. of Respondent Percentage
Advertisement 16 16%
Scheme 12 12%Presence 16 16%
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Taste 30 30%Price 14 14%
Others 12 12%Total 100 100%
It has been found that there are various factors affect the sale of the Pepsi product, 30%
respondent say that Taste is most factors of the product sale because the Taste of the Pepsi
product is very highly sweet, 16 % of the respondent says that Advertisement and Presence
is also a factor of the Pepsi product, 14 % respondent say that price is also factor of the
sales the product and 12% respondent say that scheme and others factor also affect the sale
of the product.
Q. 10.Which Company Visi-Cooler do you have?
Company Visi -cooler No. Of Respondent Percentage
Pepsi 38 38%Coca Cola 24 24%Both 22 22%Own 16 16%
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Total 100 100%
It has been found that 38 % retailers told Pepsi company Visi-Cooler use for the Soft drinks
because visi-cooler also provided by the Pepsi company.24 % retailers told Coca Cola
Company
Visi-cooler use for the soft drinks , 22% told that both Visi-cooler use because the shop of
the retailers is very big area ,16% retailers told me own Visi-cooler use for soft drink.
Q. 11.Do you know about all flavors pack (size) and respective
wholesale price Pepsi soft drinks.
Flavors Pack&Wholesale
No. of Respondent Percentage
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Price
Yes 60 60%
No 40 40%Total 100 100%
It has been found that 60% retailers said Yes know about the all flavors pack &
wholesale price of Pepsi soft drinks because retailers also sold the product in the market
daily on the price list , 40% retailers said that No Know about the all flavors pack &
wholesale price.
Q . 12. Have you been provided with sign board/display rackby Coke Company?
Provide Sign board / No. of Respondent Percentage
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Display
Rack By
CompanyYes 74 74%No 26 26%Total 100 100%
It has been found that 74 % retailers said that company also provide the Sign board /
Display rack by coke company because sign board also use for the protect the product in a
shop.26% retailers said that company not be provide the sign board , those retailers use own
display rack /sign board for the basically need.
Q.13.Do you think that aggressive advertising further help you to
increase the sales volume of Cola?
Important of
Advertising
No. of Respondent Percentage
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Increase the sales
Yes 54 54%
No 46 46%Total 100 100%
It has been found that mostly 54 % distributor say Yes advertising help in increase the
sales volume of cola because advertisement is the base of the product introduce first time
in the market and 46 % distributor say No advertising help in increase the sales volume
of cola.
FINDINGS
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FINDINGS OF THE STUDY
Out of the 100 respondent ,It has been found that 32% percent
retailer know about the Pepsi product through the TV, 46 %
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retailer know about the Pepsiproduct through the Radio , 12%
of the retailer know about the product through the Newspaper ,
6% of the retailer know about the product through the friends
and 4% retailer know about the product through the other
things .
It has been found that there are various factors affect the sale
of the Pepsi product, 30% respondent say that taste is most
factors of the product sale because the Taste of the Pepsiproduct is very highly sweet, 16 % of the respondent says that
Advertisement and Presence is also a factor of the Pepsi
product, 14 % respondent say that price is also factor of the
sales the product and 12% respondent say that scheme and
others factor also affect the sale of the product. It has been found that 30 % distributor visit of Pepsi executive
Daily, 34 % distributor visit of Pepsi executive Alternate
Day, 22% distributor visit of Pepsi executive Weekly and
14% distributor visit of Pepsi executive Fortnightly.
Out of 100 respondents I found 36 % sale of Pepsi on sweet
shops that are maximum, 24% sale of Pepsi on the general
store, 14% on the restaurants , 10 % on the Betel shop and 16
% sales on the others shops respectively. Example-Medical
Store, Cyber Caf.
It has been found that 12% Distributor/Retailer are monthly
sales (Rs)Less than 5000, 16% Distributor / Retailer are
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monthly sales (Rs) 5000 to 10000 , 40 % Distributor / Retailer
are monthly sales (Rs) 10000 to 15000 and 32% Distributor /
Retailer are monthly sales (Rs) above 15000.
It has been found that 22% Pepsi Cola soft drinks are available
in the outlet , 12% and 8% Mirinda and Mirinda(L) soft drinks
are available in the outlet, 24% 7Up are available in the outlet,
16% Slice are available in the outlet because it is a Mango
flavors soft drinks.18% Mountain Dew are available in the
outlet.
It has been found that 38 % retailers told Pepsi company Visi-
Cooler use for the Soft drinks ,24 % retailers told Coca Cola
Company Visi-cooler use for the soft drinks , 22% told that
both Visi-cooler ,16% retailers told me own Visi-cooler usefor soft drink.
It has been found that 60% retailers said Yes know about the
all flavors pack & wholesale price of Pepsi soft drinks because
retailers also sold the product in the market daily on the price
list , 40% retailers said that No Know about the all flavorspack & wholesale price.
It has been found that 74 % retailers said that company also
provide the Sign board / Display rack by coke company
because sign board also use for the protect the product in a
shop.26% retailers said that company not be provide the sign
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board , those retailers use own display rack /sign board for the
basically need.
It has been found that mostly 54 % distributor say Yes
advertising help in increase the sales volume of cola because
advertisement is the base of the product introduce first time in
the market and 46 % distributor say No advertising help in
increase the sales volume of cola.
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Suggestions &Recommendations
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Suggestions & Recommendations
Lumbini Beverages Pvt. Ltd. should introduce some
change in its marketing function and advertising to market more
rational. The following factors to be worthy of consideration:-
1. A complain Register should be provided by the company to
every distributor in every route so that, retailers/customerscan write their problems. The complain register should be
checked by consumer executive and depot in charge at time
to time.
2. A clear notification should be given to teach distributor and
each route agent to give cash memo (with printed
number) and maintain route card for every transaction.
3. Proper care should be given the companys employees at
the time of scheme close. Signature of scheme receiving
on the cash memo should be taken and it should be also
maintained in route card. Claim of scheme should be passed
after the deeply stud y of above three points i.e. difference
between opening stock and closing, signature of scheme
receiving on the cash memo and sells maintained in the
route card.
4. Some retailers keep other companies products in the
Pepsis fridge, while is provided by the company. To check
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additional scheme be given in every month, in the peak
seasons After the checking of Pepsis Fridge (3or 4 times
in every month ) if It is found that retailer does not keep
other companies products in the Pepsis Pepsi fridge the
claim of scheme should be passed . Thus we can
improve/increase its sell and employees activities.
5. There is no electricity problem in the whole area of Patna.For chilled soft drink, ice box which is compulsory and
dredge both should be provided by the company.
6. The numbers of outlets are too much. So it is required toshort the route and extra vehicles/tricycles provide in this route.
7. Facilities provided by the company should be increased.
Facilities requirements should be fulfilled in all the rural
and urban area properly after deeply study for various
aspects or retailers by the help of company employee and
depot incharge.
8. The vendors can also be provided with uniform by the
company in order to give them visibility.
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9. An appropriate name should be given to these
tricycles and properly advertisement thus giving them
some sort of identity.
10. In winters, as the sales from these tricycles may be very low
because of seasonal factors Beverages Pvt. Ltd. should
think of introducing such packs Beaver its various brands
of beverages .
11. It is vital take for Lumbini Beverages Pvt. Ltd. that
maintain the performance of Pepsi in future therefore
performance of soft drink was very good in this year in
comparison of coke.
12. Now a day with the introduction of tetra packs such as
fruity, Tree Top etc. So Lumbini Beverages Pvt. Ltd.
should think of introducing such packs of its various
brands of beverages.
13. Lumbini beverages Pvt. Ltd. should be provided its the rural
area also.
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LIMITA TIO NS
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LIMITA TIO N S
As I was asked to carry on my vocational training I found the
following limitations during my training period. So I could not
collect all information regarding my topic.
(i) Shortage of time factor was one of the biggest constraints.
(ii) Most stress was given on the primary data as it was
difficult to collect secondary data from the organization
and distribution since it is difficult to ascertain the
authenticity of their statements.
(iii) All the observation and recommendation will be made onthe feed back
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Conclusion
Roll No: 1112370007
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Conclusion
In the earlier chapters of this report on various aspects of
soft drinks industry with particular referenceto
establishment of Lumbini Beverages
Pvt. Ltd. Its organizational structure and
channel of Distribution Lumbini Beverage Pvt. Ltd. etc havebeen studied Present chapter is an attempt to summaries the
whole report and present a view suggestion.
From the data analysis and survey conducted by me, I
arrived at the following conclusions:-
(1) Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in
the market and its market share is comparatively more than Coke.
(2) The majority of the retailers deal in all brands of Pepsi and Coca-
Cola.
(3) One of the major drawbacks of Pepsi products is that all the
flavors do not reach at each and every retail outlets but
competitors products do reach that is why competitor enters in toPepsi exclusive outlets .
(4) The major problem faced by the distributor is the shortage of
supply particularly pets.
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(5) Distributor functions just as order takes; they should
contribute me and communicate to the retailers.
(6) It should be checked that whether our products is reaching to the
outlets timely and regularly or not.
(7) Although the Visi-cooler, Sign board/Display rack and Glass
strength provided by Pepsi are more than Coke but still there
are number of retailers, who are either not having these or
others have provided them .(8) There is irregular in the supply of Visi-cooler, some retailers,
which sell more are not provided Visi-cooler which some
retailers, which sell less, are provided visi- cooler.
(9) Some of the Visi-cooler provided by Pepsi is not
functioning properly, complaints regularly, are entertained after
a long time.
(10) Most of the retailers are in need of board but not provided
by the Pepsi
Company.
(11) Most of the retailers especially small retailers have
complained that the sales man
doesnt inform about any sales promotional scheme.
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Bibliography
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Bibliography
BOOKS
Kotler, Philip, Marketing Management, Pearson
Education,12th edition, 2008, New Delhi.
Kothari, C.R., Research Methodology, Second Revised
Edition, New age International Publishers.
MAGAZINES
Business world, November, December Edition.
Competition Success Review, November, December.
SEARCH ENGINE
www.google.com
WEBSITE
www.pepsico.com
Roll No: 1112370007
http://www.google.com/http://var/www/apps/conversion/tmp/scratch_4/www.pepsico.comhttp://var/www/apps/conversion/tmp/scratch_4/www.pepsico.comhttp://www.google.com/ -
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Annexure
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