sharad vijayvargiya@pepsico
DESCRIPTION
MBA final yearTRANSCRIPT
Faculty of Management StudiesInstitute of Rural Management
SUMMER INTERNSHIP PROGRAM – 2009
A PROJECT REPORT ON
PEPSI GOLD CLUB (IMPACT OF RETAIL INATIATE SCHEME ON PEPSI SALE)
At
CORPORATE GUIDE: FACULTY GUIDE:Mr. Ritesh Arora Dr. Preeti Yadav(Market development Coordinator) Faculty,Pepsi, Jaipur. Jaipur.
PRESENTED BY:Sharad VijayvargiyaEnroll. No: BM/JULY/O8/21/1737
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PGDBM (2008-10)
CERTIFICATE
This is to certify that this project report entitled “IMPACT
OF RETAIL INATITE SCHEME ON PEPSI SALE
(GOLD CLUB AUDIT)” is a record of project work done
independently by Sharad Vijayvargiya, under my guidance
& supervision and that it has not previously formed the basis
for the award of any degree, fellowship or associateship to
him.
Date:
(Prof. Preeti Yadav)
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DECLARATION
I hereby declare that this project work titled “IMPACT OF
RETAIL INTIATE SCHEME ON PEPSI SALE (GOLD CLUB AUDIT)”
conducted at PEPSICO (Varun Beverages) is submitted by
me to the Faculty of Management Studies- Institute of Rural
Management in partial fulfillment of requirements of MBA
programme is a bonafide work carried by me under the
guidance of Dr. Preeti Yadav.
This has not been submitted earlier to any other
university or Institution for the award of any
degree/diploma/certificate or published any time before.
Sharad Vijayvargiya
PGDBM (FMS-IRM)
Jaipur.
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ACKNOWLEDGEMENT
I would like to express my sincere thanks to my Project
Guide Mr. Ritesh Arora (F.M.O.) for his guidance and support
throughout my training at PepsiCo Ltd.(Varun Beverages).
His calm demeanor and willingness to teach has been a great
help in our successfully completing the project. My learning has
been immeasurable and working under him was a great
experience.
I extend my sincere thanks to all the staff members of PepsiCo
for providing a very hospitable and helpful work environment
and making my summer training an exciting and memorable
event.
My heartfelt gratitude to respected Faculty Guide,
Dr. Preeti Yadav. Without her continuous help the project
would not have been materialized in the present form. Her
valuable suggestions helped me at every step.
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Finally, I thank our Institute FMS-IRM for making this
experience of summer training in an esteemed organization like
PepsiCo Ltd. (Varun beverages).
TABLE OF CONTNTS
S.NO. CHAPTER PAGE NO.
1 Introduction To The Topic 8-9
2 Objective Of Study 10-12
3 Executive Summary 13
4 Industry Analysis 14-29
5 SWOT Analysis 30-31
6 Research Methodology 32-33
7 Gold Club Audit 34-37
8 Data Analysis 38-63
9 Limitation 64
10 Economical Utility Of Study 65-69
11 Findings 70-71
12 Recommendations 72-73
13 Questionnaire 74
14 Bibliography 75
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List of Tables and Diagrams
S.No
. Diagrams/Table’s Heading Page No.
1Distribution of locations (Pie Chart)
39
2( Location A ) Visi Size Table and Column Diagram
40
3( Location A ) Rack Type Table and Pie Chart
41
4
( Location A ) Visi/Rack Purity & Visi POG Table and Column
Diagram 42
5( Location A ) Rack/Visi Charging Table and Column Diagram
43
6(Location B ) Visi Size Table and Column Diagram
44
7 (Location B) Rack Type Table and Pie Chart 45
8
(Location B) Visi/Rack Purity & Visi POG Table and Column
Diagram 46
9(Location B) Rack/Visi Charging Table and Column Diagram
47
10(Location C) Visi Size Table and Column Diagram
48
11(Location C) Rack Type Table and Pie Chart
49
12
(Location C) Visi/Rack Purity & Visi POG Table and Column
Diagram50
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13 (Location C) Rack/Visi Charging Table and Column Diagram 51
14 (Location D)Visi Size Table and Column Diagram 52
15 (Location D) Rack Type Table and Pie Chart 53
16
(Location D) Visi/Rack Purity & Visi POG Table and Column
Diagram 54
17 (Location D ) Rack/Visi Charging Table and Column Diagram 55
18 (Location E ) Visi Size Table and Column Diagram 56
19(Location E ) Rack Type Table and Pie Chart
57
20
(Location E ) Visi/Rack Purity & Visi POG Table and Column
Diagram58
21(Location E ) Rack/Visi Charging Table and Column Diagram
59
22(Location F) Visi Size Table and Column Diagram
60
23 (Location F) Rack Type Table and Pie Chart 61
24
(Location F ) Visi/Rack Purity & Visi POG Table and Column
Diagram62
25(Location F) Rack/Visi Charging Table and Column Diagram
63
26Economical Analysis: Table 1 & Diagram
66
27Economical Analysis: Table 2 & Diagram
68
28Economical Analysis: Table 3 & Diagram
69
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INTRODUCTION TO THE
TOPIC
PepsiCo Pvt. Ltd. is world leader in convenient snacks, foods
and beverages. It produces many foods beverage products like
Frito-Lay, Mountain dew, Mirinda, Slice, 7up, Nimbooz,
Tropicana, Pepsi etc.
PepsiCo Pvt. Ltd. is running many Retail Initiate Schemes such
as Gold Club, Prestige Club, and Exclusive Club etc. Each
scheme has its own format. We got Gold Club Scheme which is
also known as Space Club. It is a retail initiate scheme which
impacts sale. In Jaipur, Gold Club is having 500 retailers of
Pepsi, which gives highest sale to company.
Company provides Visi coolers to these retailers. Visi coolers
are commonly known as Pepsi Fridge. Gold club
Scheme is a kind of audit where we check visi at several bases.
For it there is a format, which we can see on next page.8
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Today Visi Purity, Rack purity, Rack Charging, Visi Charging
and Visi POG are major problem for company. Our study is
based upon it and our results show this. PepsiCo Pvt. Ltd. wants
to know its visis conditions as well as art of use by retailers.
Company has a format for it.
S.No. Outlet
Name
Location Visi
Size
Rack
Type
Visi
Purity
Visi
Charging
Visi
POG
Rack
Purity
Rack
Charging
No. of
SKU
Available
FMO
Count
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OBJECTIVE OF STUDY
There were various objectives to conducting this study, we can
mention them by following points:-
To know visi’s condition such as its size, type, maintenance
problem: - Company wanted an accurate database of visis. They
were having database but it was not accurate such as in some
outlets visi is PVC but in record it was GRAVITY. In some
outlets visi is 300 liters. But it was 200 or 400 Liters in records.
In other hand company wanted to check visis condition like are
they having any maintenance problem or not?
To know retailers problem regarding supply, scheme and
others: - What types of problems retailers are facing? It was
company’s one of the main objective. Are they getting proper
supply or not? Are they getting schemes or not? Suppliers’
behavior is perfect or not?
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To know about Visi audit (visi purity, visi charging, visi
POG): - Company also wanted to know that are retailers using
visis for PepsiCo products or not? Are they using it for personal
use or for keeping other company’s products?
To know about Rack audit (rack purity, rack charging): -
Company wanted to know how many retailers is using rack audit
norm? It means are they arranging rack in appropriate manner
and filling visi according to company’s policies?
To know about SKU availability: - Company also wanted to
know how many retailers are having full products and in various
sizes like Pepsi (200ml. , 300ml. ,1 liter, 2 liters), Pepsi My Can,
Mirinda (200ml. , 300ml. ,1 liter, 2 liters), Nimbooz (200ml. ,
300ml. ,1 liter, 2 liters),same case in Tropicana, Mountain dew
etc.
To know about FMO count (PEPSI, MIRINDA): How much
stock retailers are having of Mirinda, Pepsi? Through this
company estimates its sales. In it we calculate no. of bottles like
Joshi Cold Drink is having 50 bottles of 500ML, and 15 bottles
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of 2 liters of Pepsi. In this case I will mention 65 in Pepsi FMO
count.
To analysis its Supply chain and customer relationship
management: - Company wanted to know that are Retailers
getting PepsiCo products by proper supply chain? And in other
hand are retailers getting full satisfaction by customer
relationship management?
To know about market condition of its visis as compare to
competitors: - Company wanted to know that competitor’s visis
{coca-cola} are serving in what manner. It means are they
providing any special size or features? Company can improve
the quality, features of its visi’s by analysis its competitors
strategy.
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Executive Summary
Soft drinks are non-alcoholic water-based flavored drinks that
are optionally sweetened, acidulated and carbonated, some
carbonated soft drinks also contains caffeine; mainly the brown-
colored cola drinks.
In India PepsiCo and Coca cola are major player of soft drink
industry. Varun Beverage Ltd. is the main bottlers for Pepsi in
India. Varun Beverages Limited is a group company of R.J.
Group.
RJ Corp has business interests in restaurants (Pizza Hut and
KFC), coffee chain (Costa Coffee), and Walt Disney group
company Disney Artist, ice cream(Cream Bell), liquor (through
a JV with beer major In Beverage), real estate, hotels and
education. All food, retail and franchise operations are
consolidated under group company Devyani International.
In January 2009, the government cleared the decks for a $50-
million (about Rs 250 crore) infusion of foreign direct
investment by PepsiCo Holdings into the India arms.
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INDUSTRY- ANALYSIS
(The originator of PEPSI Caleb D. Bradham)
Global level: - Caleb Bradham, a New Bern, North
Carolina, druggist, who first formulated Pepsi-Cola, founded
PepsiCo’s beverage business in 1898.
Today, Brand Pepsi is part of a portfolio of beverage brands that
includes carbonated soft drinks, juices and juice drinks, ready-
to-drink teas and coffee drinks, isotonic sports drinks, bottled
water and enhanced waters. PNAB (PepsiCo North American
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Beverages) has well known brands such as Mountain Dew, Diet
Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water,
Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice,
Dole, Tropicana Twister and Tropicana Season's Best.
PNAB manufactures and sells concentrate for some of these
brands to licensed bottlers, who sell the branded products to
independent distributors and retailers. PNAB provides
advertising, marketing, sales and promotional support for its
brands. This includes some of the world's best-loved and most-
recognized advertising.
In 1992, PNAB formed a partnership with Thomas J. Lipton Co.
to sell ready-to-drink tea brands in the United States. Pepsi-Cola
also markets Frappuccino ready-to-drink coffee through a
partnership with Starbucks.
Anthony Rossi as a Florida fruit packaging business founded
Tropicana in 1947. In 1954, Rossi pioneered a pasteurization
process for orange juice. For the first time, consumers could
enjoy the fresh taste of pure not-from-concentrate 100% Florida
orange juice in a ready-to-serve package. The juice, Tropicana
Pure Premium, became the company's flagship product. PepsiCo
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acquired Tropicana, including the Dole juice business, in August
1998.
SoBe became a part of PNAB in 2001. SoBe manufactures and
markets an innovative line of beverages including fruit blends,
energy drinks, dairy-based drinks, exotic teas and other
beverages with herbal ingredients.
Gatorade thirst quencher sport drinks, was acquired by The
Quaker Oats Company in 1983 and became a part of PepsiCo
with the merger in 2001. Gatorade is the first isotonic sports
drink. Created in 1965 by researchers at the University of
Florida for the school's football team, "The Gators," Gatorade is
now the world's leading sports drink.
PepsiCo International is comprised of all PepsiCo businesses in
Europe, Asia, Africa and Australia.
Historically, Pepsi-Cola began selling its products in Europe in
the 1930s and expanded international beverage operations
rapidly beginning in the 1950s. PepsiCo formally established an
international food unit in 1973, and 30 years later, in 2003 the
company combined the food and beverage businesses to form
PepsiCo International.
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Today, the employees of PepsiCo International make, sell and
deliver a variety of great tasting foods and beverages around the
world, including Lay’s potato chips, Doritos, Cheetos, Quaker
Oats, Pepsi-Cola, Gatorade, Lipton ready to drink teas, and
Tropicana juices. Brands sold exclusively in international
markets include 7-Up and Mirinda beverages and many popular
local snack brands, including Walkers in the United Kingdom,
Matutano in Iberia, Duyvis nuts in Western Europe, Marbo and
Star snacks in Eastern Europe, Lebedyansky juices in Russia,
Simba in South Africa and Smith’s in Australia. The company
also regularly introduces unique products for local tastes.
PepsiCo International has a well-earned reputation of giving
back to the communities in which its products are sold, with a
focus on health and wellness, environmental sustainability and
education. Specific programs are aimed at promoting active
lifestyles for children; recycling and environmental cleanup in
local communities; and book and computer donations to libraries
and schools.
Indian level: - PepsiCo entered India in 1989 and has
grown to become one of the country’s leading food and
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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 the company was established in the country.
PepsiCo provides direct and indirect employment to 150,000
people including suppliers and distributors.
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 India’s 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, Tropicana 100
percentage fruit juices, and juice-based drinks – Tropicana
Nectars, Tropicana Twister and Slice. Local brands – Lehar
Evervess Soda, Dukes Lemonade and Mangola add to the
diverse range of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the
branded salty snack market and all Frito Lay products are free of
trans-fat and MSG. It manufactures Lay’s Potato Chips; Cheetos
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extruded snacks, Uncle Chipps and traditional snacks under the
Kurkure and Lehar brands. The company’s high fibre breakfast
cereal, Quaker Oats, and low fat and roasted snack options
enhance the healthful choices available to consumers. Frito
Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos
are cooked in Rice Bran Oil to significantly reduce saturated fats
and all of its products contain voluntary nutritional labeling on
their packets.
The group has built an expansive beverage and foods business.
To support its operations, PepsiCo has 43 bottling plants in
India, of which 15 are company owned and 28 are franchisee
owned. In addition to this, PepsiCo’s Frito Lay foods division
has three state-of-the-art plants. PepsiCo’s business is based on
its sustainability vision of making tomorrow better than today.
PepsiCo’s commitment to living by this vision every day is
visible, in its contribution to the country, consumers and
farmers.
Performance with Purpose. Performance with Purpose
articulates PepsiCo India's belief that its businesses are
intrinsically connected to the communities and world that
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surrounds it. Performance with Purpose means delivering
superior financial performance at the same time as we improve
the world. To deliver on this commitment, PepsiCo India will
build on the incredibly strong foundation of achievement and
scale up its initiatives while focusing on the following four
critical areas that have a business link and where we believe that
we can have the most impact.
OUR CUSTOMERS
Our customers include authorized bottlers and independent
distributors, including foodservice distributors and retailers. We
normally grant our bottlers exclusive contracts to sell and
manufacture certain beverage products bearing our trademark
within a specific geographic area. These arrangements provide
us with the right to charge our bottlers for concentrate, finished
goods and Aquafina royalties and specify the manufacturing
process required for product quality.
Since we do not sell directly to the consumer, we rely on and
provide financial incentive to our customers to assist in the
distribution and retailers, these incentives include volume- based
rebates, product placement fees, promotions and displays. For
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our bottlers, these incentives are referred to as bottler funding
and are negotiated annually with each bottler to support a variety
of trade and consumer programs, such as consumer’s incentives,
advertising support, new product support, and vending and
cooler equipment placement. Consumer incentives include
coupons, pricing discount and promotions, and other
promotional offers .advertising support is directed at advertising
programs and supporting bottler media. New product support
includes targeted consumer and retailers incentives and direct
marketplace support, such as point- of – purchase materials,
product placement fees, media and advertising. Vending and
cooler equipment placement program support the acquisition
and placement of vending machine and cooler equipment. The
nature and type of programs vary annually.
Retail consolidation and the current economic environment
continue to increase the importance of major customers. In
2008, sales to wal-mart stores, inc. (wal-mart), including Sam’s
club, represented approximately 12% of our total net revenue.
Our top five retail customers represented approximately 32% of
our 2008 North American net revenue, with wal-mart (including
Sam’s) representing approximately 18%. These percentages
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include concentrate sales to our bottlers, which are used in
finished goods sold by them to these retailers. In addition, sales
to PBG represented approximately 8% of our total net revenue
in 2008.
OUR RELATED PARTY BOTTLERS
We have ownership interests in certain of our bottlers. Our
ownership is less than 50% and since we do not control these
bottlers, we do not consolidate their results. We have designated
three related party bottlers, PGB, Pepsi Americas, ins. (pas) and
Pepsi bottling ventures LLC (PBV), as our anchor bottlers. We
include our share of their net income based on our percentage of
income ownership in our income statement as bottling equity
income. Our anchor bottlers distribute approximately 60% of
our North American beverage volume and approximately 17%
of our beverage volume outside of North America. Our anchor
bottlers participate in the bottler funding programs described
above. Approximately 6% of our total 2008 sales incentives
were related to these bottlers our share of net income from other
no controlled affiliates is recorded as a component of selling,
general and administrative expenses.
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OUR DISTRIBUTION NETWORK
Our products are brought to market through direct-store-delivery
(DSD), customer warehouse and foodservice and vending
distribution networks. The distribution system used depends on
customer needs, product characteristics and local trade practices.
DIRECT-STORE-DELIVERY - We are bottlers and our
distribution operates DSD system that delivers snacks and
beverages directly to retail stores where the products are
merchandised by our employees or our bottlers. DSD enables us
to merchandise with maximum visibility and appeals is
especially well suited to products that are restocked often and
respond to in-store promotion and merchandising.
CUSTOMER WAREHOUSE - Some of our products are
delivery from our manufacturing plants and warehouse to
customer warehouse and retail stores. These less costly systems
generally work best for products that are less fragile and
perishable, have lower turnover, and are less likely to be impulse
purchases.
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FOODSERVICE AND VENDING - Our foodservice and
vending sales force distributes snacks, foods and beverages to
third-party foodservice and vending distributors and operators.
Our foodservice and vending sales force also distribution certain
beverages through our bottlers. This distribution system supplies
our products to schools, businesses, stadiums, restaurants and
similar locations.
OUR COMPETITION
Our businesses operate in highly competitive markets. We
compete against global, regional, local and private label
manufacturers based on price, quality, product variety and
distribution. In U.S. measured channels, our chief beverage
competitor, the coca-cola company, has a larger share of
carbonated soft drinks (CSD) consumption, while we have a
larger share of liquid refreshment beverages consumption. In
addition, the coca cola company has a significant CSD share
advantage in many markets outside the United States. Further,
our snack brands hold significant leadership positions in the
snack industry worldwide. Our snack brands face local and
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regional competitors, as well as national and global snack
competitors, and compete based on price, quality, product
variety and distribution. Success in this competitive environment
is dependent on effective promotion of existing products and the
introduction of new products. We believe that the strength of our
brands, innovation and marketing, coupled with the quality of
our products and flexibility of our distribution network, allow us
to compete effectively.
OUR RELATIONSHIP
Certain members of our board of directors also serve on the
boards of certain vendor and customers. Those board members
do not participate in our vender selection and negotiations nor in
our customer negotiations. Our transaction with these vendors
and customers are in the normal course of business and are
consistent with terms negotiated with other vendors and
customers. In addition, certain of our employees serve on the
boards of our anchor bottlers and other affiliated companies and
do not receive incremental compensation for their board
services.
PepsiCo MissionPage | 25
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“To be the world’s premier consumer products company focused
on convenience foods and beverages. We seek to produce
healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our
business partners and the communities in which we operate. And
in everything we do, we strive for honesty, fairness and
integrity.”
Organizational Values
Our values reflect our aspirations - the kind of company we
want PepsiCo to be. We express our values in the form of a
commitment. Our commitment is:
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Sustained Growth is fundamental to motivating and measuring
our success. Our quest for sustained growth stimulates
innovation, places a value on results, and helps us understand
whether today's actions will contribute to our future. It is about
growth of people and company performance. It prioritizes
making a difference and getting things done.
Empowered People means we have the freedom to act and think
in ways that we feel will get the job done, while being consistent
with the processes that ensure proper governance and being
mindful of the rest of the company's needs.
Responsibility and Trust form the foundation for healthy
growth. It is about earning the confidence that other people
place in us as individuals and as a company. Our responsibility
means we take personal and corporate ownership for all we do,
to be good stewards of the resources entrusted to us. We build
trust between others and ourselves by walking the talk and being
committed to succeeding together.
Guiding Principles
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This is how we carry out our commitment. We must always
strive to:
Care for customers, consumers and the world we live in. An
intense, competitive spirit in the marketplace drives us, but we
direct this spirit toward solutions that achieve a win for each of
our constituents as well as a win for the corporation. Our success
depends on a thorough understanding of our customers,
consumers and communities. Caring means going the extra mile.
Essentially, this is a spirit of growing rather than taking.
Sell only products we can be proud of. The test of our standards
is that we must be able to personally endorse our products
without reservation and consume them ourselves. This principle
extends to every part of the business, from the purchasing of
ingredients to the point where our products reach the consumer's
hands.
Speak with truth and candor. We speak up, telling the whole
picture, not just, what is convenient to achieving individual
goals. In addition to being clear, honest and accurate, we take
responsibility to ensure our communications are understood.
Balance short term and long term. We make decisions that hold
both short-term and long-term risks and benefits in balance over
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time. Without this balance, we cannot achieve the goal of
sustainable growth.
Win with diversity and inclusion. We leverage a work
environment that embraces people with diverse backgrounds,
traits and different ways of thinking. This leads to innovation,
the ability to identify new market opportunities, all of which
helps develop new products and drives our ability to sustain our
commitments to growth through empowered people.
Respect others and succeed together. This company is built on
individual excellence and personal accountability, but no one
can achieve our goals by acting alone. We need great people
who also have the capability of working together, whether in
structured teams or informal collaboration. Mutual success is
dependent on treating everyone who touches the business with
respect, inside and outside the company. A spirit of fun, our
respect for others and the value we put on teamwork make us a
company people enjoy being part of, and this enables us to
deliver excellent performance.
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SWOT ANALYSIS
Strengths –
(a) Pepsico is a well-known brand in FMCG sector.
(b) Pepsico is offering many attractive sales promotion schemes.
(c) Pepsico is having good market share.
(d) Pepsico is offering Varity of tastes to consume.
Weakness –
(a) Lack of effective Supply Chain Management.
(b) Retailers are not getting proper schemes of Pepsi.
(c) Visis are out of order. In Jaipur town there is no appropriate
maintenance services available.
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(d) Retailers were complaining about cooling. Visis are not
cooling well mainly 300 and 400 liters.
Opportunities: -
(a) Large beverage market.
(b) Popular in youth as well as children.
(c) New taste can be introduced like apple, even health drink
also.
(d) In India the major competitors of Pepsi are tea, coffee, lassi,
in this case Pepsi can come in 100 ml or even 50 ml at Rs.3 or 4.
Threats: -
(a) Increasing competitors day by day.
(b) Poor publicity by competitors.
(c) Numberless innovation’s area in beverage industry.
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RESEARCH METHODLOGY
Sources of data-The methodology adopted for this research
study is based on primary and secondary data.
Tools of data collection-
Primary data-The primary data collected for the study includes
the data collected from Retailers in Jaipur and near to Jaipur
town through observations and questionnaire.
Secondary data-Secondary data was collected from the
company manuals, internet, and journal.
Sampling unit-The sampling unit is the basic unit containing
the elements of the population to be sampled. Sampling unit for
the study include different retailers of Jaipur and near to Jaipur
town. (Gold club retailers)
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Sample size: -The sample size includes 478 retailers.
Sampling method: -Selective sampling method.
METHOD OF PROJECT FINDINGS
Tabular forms- Observations and inferences are presented in
table, as it makes easy to understand the findings at glance than
going through the lengthy descriptions.
Graphs- Each finding is presented in the form of the pie charts
or bar diagrams after the analysis for easy references. The main
features of frequency distribution are conveniently
communicated by representing the frequency in the form of the
diagram, since the diagram is more easily and more quickly
understood than a collection of numbers.
Description – After the analysis of the collected data,
interpretations are also given at the bottom of the tables.
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GOLD/SPACE CLUB AUDIT
Gold club or space club is a group of approx 500 retailers of
Jaipur and near to Jaipur town. They all are having visis of
different size and type.
Gold club audit is a type of audit where a researcher judges
every retailers performance regarding visi. In this audit we were
having a format which has these columns.
Serial no: - In this Column we mention retailers number like 1,
2, 3, 4………………..
Name of outlet: -In it we put outlet name such as Joshi cold
drinks, Dev hotel etc.
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Location/Town: - In this we mention location of outlet such as
Ramganj, Jothwara, and Adrash Nagar etc. And in town we
mention Jaipur town.
Visi Size: - There are mainly three types of visis in PepsiCo
220,300,400 liters. But in some outlet they are having
160,1192litres visi size.
Rack Type: - There are two types of Rack first is Gravity and
second is PVC. A gravity rack is old visi and has iron body, in
other hand a PVC rack is new one, it has plastic body.
Visi Purity: - It means how much a visi is pure. If a visi has
only PepsiCo products it known as pure visi or if a visi has milk,
juices, butter or other company’s product like coca-cola, Thums
up it will be known as impure visi. In this Column we fill YES
or NO options.
Visi Charging: -It means how much visi is charged with
PepsiCo products. For example a visi is having only 2 bottles of
Pepsi and 1 bottle of Mirinda, in this case visi is not charged
full. In other hand a visi is full charged with its product then it
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will come under charged visi. We mention this detail by
percentage basis through observation method like 45%, 70% or
90% etc.
Visi POG: - It stands visicooler planogram.According to
company’s norms a visi should keep a certain sequence. This
sequence is different in various sizes. For example in 220 liters
size visi has 3 shelves;
In first shelf retailers should keep 1 row Pepsi My Can, 4 rows
of Pepsi (300ml.), 1 row of 7up (300ml.) and at last row for
Mirinda (300ml.)
In second shelf they should keep 2 row of Mirinda (300ml.), 2
row of Mountain Dew (300ml.), and 3 row of Slice (300ml.)
And in third shelf retailers should 2 row of Pepsi (500ml.), 1
row of Mirinda (500ml.), 1 row of Mountain dew (500ml.), 1
row of Pepsi (2 liters)
Rack purity: - It means how much a rack is pure. A visi has 2,
3 or 4 racks according to its size. If a rack is having products
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with certain size of PepsiCo according Company’s norms it will
be termed as a pure rack. In this we mention YES or NO
options.
Rack charging: - How much a rack or shelf is charged with
PepsiCo products according to norms. In this option we mention
Percentage.
No. of SKU available: - In this column we mention how many
brands of PepsiCo a retailer is having. For example Pepsi
200ml.300ml. , Pepsi My Can, Mirinda 200ml.2litres, Tropicana
(Mango, Apple), it means there are 08 SKU available.
FMO COUNT.
Pepsi FMO: -In this column we mention how much they
(Retailers) are having Pepsi stock. In this we put no. of bottles
like 50,100 0r 200 etc.
Mirinda FMO: - In this column we mention how much they
(Retailers) are having Mirinda stock. In this we put no. of bottles
like 50,100 or 200 etc.
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DATA- ANALYSIS
We divided Jaipur town in 06 locations. So that we can work
according area wise. We can mention these locations;
Location A: - This location includes Ramganj, Johri Bazaar,
Amer, Subash chowk, Ghatgate, Badi chopar, Choti chopar,
Tripoliya, Chaura Rasta, Chandi ki taksal, etc.
Location B: - This location includes Agra road, Gaunar,
Transport Nagar, Sethi colony, M.D. road, Rajapark, Jawahar
Nagar, Janta colony, Adrash Nagar, Brahmpuri, etc.
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Location C: - This location includes Chandpol, S.C. road,
Sindhicamp, Railway station, City parlor, M.I. road, Jalupura,
C-scheme etc.
Location D: - This location includes Malviya Nagar, Gourav
tower, Tonk road, Janta store, Gandhi Nagar, Bajaj Nagar,
Jagatpura, J.L.N. Marg, Barket Nagar, etc.
Location E: - This location includes Jothwara, Chomu road,
Ambawari, Ajmer road, Vaishali Nagar, Chitrkoot, Khatipura,
Jharkhand Mod, Shastri Nagar etc.
Location F: - This location includes Sanganar area.
There are 478 outlets in these locations, which come in Gold
Club. We can show no. of outlets according to area wise.
Locations – Chart
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LOCATION A:
Visi Size: - This location has 66 outlets. We can mention
various sizes of visis with their no. of outlets through following
table:
Visi Size No. of Outlets
400Lt. 27
300Lt. 20
220 Lt. 16
Others 03
40
30
Rack Type: - As we know there are two types of rack,
(a) Gravity, (b) PVC. We can mention its result by
the table.
Rack type No. of outlets
Gravity 25
PVC 41
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Visi Purity, Rack Purity and Visi POG: - These are the most
important points in our research; we can present it by following
table.
Options Visi Purity Rack Purity Visi POGYes 40 42 06No 26 24 60
(No. of Outlets)
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Visi Charging and Rack Charging: - In Pepsi location we have 65
outlets, in this location we got these values, which we can mention by
following table.
Type 0% to 50% 51% to 75% 76% to 100%
Visi Charging 03 26 37
Rack Charging 07 29 30
(No. of Outlets)
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LOCATION B:
Visi Size: -In this location 85 outlets are situated, we got following values.
Visi Size No. of outlets400lt. 27300lt. 21
220lt. 35Others 02
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Rack Type: - Out of 85 outlets, we came at this result.
Rack type No. of outlets
Gravity 38
PVC 47
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Visi Purity, Rack Purity and Visi POG: - These are the most
important points in our research; we can present it by following table.
Options Visi Purity Rack Purity Visi POG
Yes 47 49 7
No 38 36 78
(No. of Outlets)
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Visi Charging and Rack Charging: - In Mirinda location we
came to know following results.
Options 0% to 50% 51% to 75% 76% to 100%
Visi Charging 15 23 47
Rack Charging 23 30 32
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(No. of Outlets)
LOCATION C:
Visi Size: -In this location 87 outlets are situated, we got
following results.
Visi Size No. of outlets
400lt. 24
48
30
300lt. 13
220lt. 41
Others 09
Rack Type: - As we know there are two types of rack, (a)
Gravity, (b) PVC. We can mention its result by the table.
Rack type No. of outlets
Gravity 31
PVC 56
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Visi Purity, Rack Purity and Visi POG: - we can present it by
following table.
Options Visi Purity Rack Purity Visi POG
Yes 43 46 12
No 44 41 75
50
30
Visi Charging and Rack Charging: - In Slice location, we
came to know following results.
Percentage 0% to 50% 51% to 75% 76% to 100%
Visi Charging 15 27 45
Rack Charging
14 31 42
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LOCATION D:
Visi Size: -In this location 88 outlets are situated, we got
following values.
Visi Size No. of outlets
400lt. 29
300lt. 28
220lt. 27
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Others 04
Rack Type: - As we know there are two types of rack,
(a) Gravity, (b) PVC. We can mention its result by the
table.
Rack type No. of outlets
Gravity 36
PVC 52
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Visi Purity, Rack Purity and Visi POG: - we can present it by
following table.
Options Visi Purity Rack Purity Visi POG
Yes 43 46 12
No 44 41 75
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Visi Charging and Rack Charging: - In this location we came to
know following results.
Percentage 0% to 50% 51% to 75% 76% to 100%
Visi Charging 17 13 48
Rack Charging 19 32 37
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LOCATION E:
Visi Size: -In this location 114 outlets are situated, we got following results.
Visi Size No. of outlets
400lt. 45
300lt. 20
220lt. 40
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Others 09
Rack Type: - Out of 114 outlets we got 56 gravity rack and 58 PVC
rack.
Rack type No. of outlets
Gravity 56
PVC 58
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Visi Purity, Rack Purity and Visi POG: - we can present it by
following table.
Options Visi Purity Rack Purity Visi POG
Yes 73 76 19
No 41 38 95
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Visi Charging and Rack Charging: - In Mountain Dew location
we came to know following results.
Percentage 0% to 50% 51% to 75% 76% to 100%
Visi Charging 60 37 17
Rack Charging 44 47 23
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LOCATION F:
Visi Size:-In this location 38 outlets are situated, we got
following results.
Visi Size No. of outlets
400lt. 15
300lt. 07
220lt. 13
Others 03
60
30
Rack Type: - Out of 38 outlets we came at this result.
Rack type No. of outlets
Gravity 16
PVC 22
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Visi Purity, Rack Purity and Visi POG: - we can present it by
following table.
Visi Purity Rack Purity Visi POG
Yes 26 26 9
No 12 12 29
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(No. of Outlets)
Visi Charging and Rack Charging: - In this location we came
to know following results.
Percentage 0% to 50% 51% to 75% 76% to 100%
Visi Charging 5 11 22
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Rack Charging 9 9 20
LIMITATIONS OF THE STUDY
(a) Difficult to contact the appropriate Retailers - It is
enigmatic task to collect the appropriate data to selective
retailers because we did not have proper address of outlets.
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(b) Difficulty in finding the information – Regarding visi’s
purity, rack purity, charging information, it was difficult to
observe because they are dynamic in nature.
(c) Time consuming- It was not an easy task as there is need
internal information about the concerned outlet and needs a
strong relationship building with appropriate person of the
outlet. We had to cover long distances like Gaunar, Kishangarh,
and RIICCO area.
(d) Lack of tools and techniques- We were not having any type
of tools and techniques in deciding visi purity, rack purity,
charging percentage. In this case we observed them by personal
observation method.
(e) Many times the concerned respondents from whom the
information has to take were having time constraints.
Economical Utility of Study
If we look the other side of picture, we can see economic utility
of our study. During our survey, we were also collecting
average volume sales data through a Questionnaire (see it at
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page no.74). After collecting this data from 100 outlets (Gold
club Retailers) we came to very strange results. Before
presenting those results, we can mention some assumption,
which we took during this survey.
Assumptions:
(a) Retailers gave right information regarding their
volume of sales.
(b) Researchers are very much efficient to calculate (observe)
without any tool.
(c) There is possibility that this positive relationship is only a
coincident.
(d) In our study, we assumed that one retailer is having one
Pepsi Visi
Now we can show results by following tables and diagrams.
(Table: 1)
S.No. Rack Charging Average No. of Bottles Sold per Month
(300ml. and 2 litter)
1 50% to 70% 250-300
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2 70% to 90% 350-400
3 Above 90% 450-500
As we can see in our diagram SS curve is Positive that tells that
if we increase Rack and Visi charging then Number of bottles
sold in a month also increases. This result shows an important
combination between sales and purity. In economics language
we can say there is a positive relationship between sales and
Purity (Rack & Visi).
(Table: 2)
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Average No. of Bottles Sold Per Month
Rack/Visi Charging
SS Curve
31
S.No. Rack & Visi Purity Average No. of Bottles Sold per Month
(300ml. and 2 litter)
1 No 300-400
2 Yes 400-425
In this table we are trying to show that there is also positive
relationship between Purity and volume sold, But this time SS
curve is around 25 to 30 degree, it means if there Purity is
increasing then sales will increasing but not so much. We can
show it by following diagram:
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SS Curve
Average No. of Bottles Sold Per Month
Visi & Rack Purity
30
In our diagram, we can see SS curve is still positive, but
Increment in Number of Bottles is not as much as Purity
increment.
Table: 3
S.No. No. of Brands of
PepsiCo(beverages)
Average No. of Bottles Sold per Month
(300ml. and 2 litter)
1 1-3 150-200
2 4-6 300-350
3 7-9 400-450
4 Above 9 500-600
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This diagram is telling us that there is a strong positive
relationship between no. of Pepsi brands and Average no. of
bottles sold per month. In other words, we can say that if
retailers are having more brands there are more chances of high
sales. We can see arrow keys are not similar.
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SS Curve
Average No. of Bottles Sold Per Month
30
No. of PepsiBrands
FINDINGS
It was a great experience to accomplish this task. After
completing this task we got these findings: -
In some areas, retailers were not satisfied with supply. For
example Sindhi colony, Agra road etc.
According to retailers, they are not getting proper scheme of
Pepsi. In Amer road this problem was very common.
In some shops visis are out of order, these area are Main city
and Agra road.
In some shops, visis are not available. According to
company’s data some outlet should have visi, but in realistic
world they did not have visis.
Most of retailers were complaining about cooling. This
problem mainly is occurring with 300litres and
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400litres.According to them 165 liters visi is perfect for
cooling, but it is small.
In some shops, retailers are not using visis rightly. They are
using it for their personal use and keeping other products like
milk, butter and other soft drink.
Some of them were unhappy with replacement of products.
Some retailers were saying that there is no good replacement
plan in Pepsi; they have to wait 3-4 weeks for it.
The popularity of Pepsi is increasing day by day. Its new
products like Pepsi My Can, Nimbooz are getting success.
PepsiCo schemes are very popular. Now days its Pepsi gold
coin is on its peak.
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RECOMMONDATION
Supply problem should be solved immediately: - As we
mentioned earlier many of locations are suffering from lack of
supply. Either they are not getting all types of brands or at particular
time. Mainly these locations are Agra road, Amer road and Sindhi
colony etc. We can recommend this to company so that retailers
can easily get their desired products at right time.
Recommendation to the company for good replacement policy: -
According to the retailers, they are not having good replacement
policy from company side either company is taking very long time
or not changing them.
Transparency between company and retailers:-For the beneficial
of both side it is necessary that a clear picture will come in the play
mainly in the schemes related problem it quite should be
transparent.
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Target the untapped market: - Large part of market is still
uncovered .Basically in the villages Pepsi have to fight with local
brands like Lijjat, Mahak etc. These local players play with low
price.
Regular checking of visis: -There should be a schedule for
checking regularly of visis. We can suggest that it should be done
either weekly or fortnightly.
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Questionnaire
1. How many visis do you have?
(a) One
(b) Two
(c) More than Two
2. How many visis of Pepsi do you have?
(a) One
(b) Two
(c) More than Two
3. How many Pepsico brands do you have?
(a) 1-2 (c) 6-9
(b) 3-5 (d) Above 9
4. What is the average no. of bottles (300ml, 2liters) sale in a month?
(a) 100-150 (c) 300-450
(b) 150-300 (d) 450-550
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(e) Above 550
Bibliography
S.No. Name of Author Name of Book Publication Year
1. Kothari, C.R. Research Methodology Wishwa
Prakashan
(New Delhi)
1985
2. Sadhu,A.N. and
Singh,Amarjit
Research Methodology
in Social Sciences
Himalaya Publishing
House (Bombay)
1980
3. Ghosh, B.N. Scientific Methods and
Social Research
Sterling
Publication (New
Delhi)
1982
4. Gopal, M.H. Research Reporting in
Social Sciences
Dharwar
Publication
(Karnataka)
1965
5. Tandon, B.C. Research Methodology
in Social Science
Chaitanya
Publishing House
(Allahabad)
1979
Important Search Engine:
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