starting pages of pepsi project

8/8/2019 Starting Pages of Pepsi Project

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A

PROJECT REPORT

+++++++++++++++

AS A PARTIAL FULFILLMENT FOR THE AWARD

OF THE DEGREE OF

BACHELOR OF MANAGEMENT STUDIES

SESSION : 2010- 2011

SUBMITTED BY SUBMITTED TO:Vinod . N . Malviya ..


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ACKNOWLEDGEMENTACKNOWLEDGEMENT

.... Mr. Vikas Gautam (Sr. Customer Executive) and Mr. Pankaj SharmaMr. Vikas Gautam (Sr. Customer Executive) and Mr. Pankaj Sharma

(Customer Executive) ..(Customer Executive) ..

NAME.

T.Y.BMS.T.Y.BMS.

EXECUTIVE - SUMMARY


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Market demand of Mirinda-O vis--vis Fanta

Market demand of Mirinda-L vis--vis Limca, Mountain dew, Sprite and 7up

Market demand of Slice vis--vis Maaza.

Market comparison of all the available brands of the soft drinks in the market.

Brands availability of Coca-cola and its brands vis--vis Pepsi and its brands.

A BRIEF DESCRIPTION OF THE FINDINGS:

1. Extent to which merchandising assets are being used by the

retailers in promoting the brands: -


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evening in order to see there visibility. In these cases some glaring facts were found.

(Areas which were looking like monopoly markets of Coca-Cola because of its Red-

color during the day had altogether a different look in the evening. They turned into

Pepsimonopoly during the evening because of the GSB's. Researcher have also tried

to find out what are the difficulties retailers are facing on using these brands up to 100%

of their strength.

2. Market demand of each of Pepsis product vis--vis to their

competitor flavours in Coca-Cola's artillery: -

For this, retailers were asked about the market demand of the

different brands and they have been asked to rank the brands with respect to their

competitive flavors. In this also some interesting facts came out like no lemon brand

exists in front of Pepsi.

OurMountain dew, which we were thinking that it will be competing

with Limca, actually it is grabbing the Coca-Cola'sSprites market and Pepsis,7up's

market. In case ofMirinda (O) and Coca-Cola's Fanta, Mirindas market is going up

day by day.

In case of mango drinks Slice even after entering the market so late

has been able to quickly pick up with Maaza From the day Tetra Slice has entered the


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4. Brands/ Pack availability of Coca-cola and its brands vis--vis

Pepsi and its brands: -

For this study, retailers were asked that how many bottles they are

having in their fridge and how many of them are of the brand whose fridge they are

having and about the capacity of their fridge. In spite of these findings Researcher have

worked on some other things like retailers expectations from the company. He tried to

find out how the company can increase the sales. In the answer to this some funny

recommendations came up (some consumers recommended that Pepsi should change

the percentage of the sweetening content of its cola drinks).


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ABOUT RKJ GROUP

Welcome to our Group website, designed to open up our

business and inform you about RKJ Group. With the

rapid advancement of technology, the Internet is themost efficient way to give you up to date and easily

accessible information. We hope you find this website a

useful and effective way of learning more about RKJ

Group.

ABOUT US:

It can be said with absolute certainty that the RKJ Group has

carved out a special niche for itself. Our services touch different aspects of

commercial and civilian domains like those of Bottling, Food Chain and

Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to

expertise and leadership in the fields of education, food and beverages.

Th b i f th t t d i 1991 ith ti ith P i F d


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We diversified into education by opening our first school in

Gurgaon under management of Delhi Public School Society. The schools of the

group are run under a Registered Trust namely Champa Devi Jaipuria

Charitable Trust.

Companies are medium sized, professionally managed,

unlisted and closely held between Indian Promoters and foreign collaborators.

The group added another feather to its cap when the

prestigious PepsiCo International Bottler of the Year award was presented to

Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCos

centennial year celebrations at Hawaii, USA. The award was presented by Mr.

Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush,the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board &

C.E.O., PepsiCo Inc. and Mr. Craig

Our Success

Weatherup, President of Pepsi Cola Company.


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Our People

At RKJ we are creating an environment where our employees

enjoy a greater degree of empowerment - both individually and in their work

teams.

Our employees are equipped with the necessary tools, training


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FOOD.

The last decade has been a period of dynamic growth for non-

alcoholic drinks and has witnessed completely new segment of

the food market in India taking shape. To capitalize on the RKJ

groups significantly important relationship with Pepsi Foods, it

decided to venture into Foods sector, which is second largest

business for Pepsi all over the world. Fast food is the most happening things

across the world. The group became the first franchisee for Yum Restaurants

International [formerly PepsiCo Restaurants (India) Private Limited] in India. It

has exclusive franchise rights for Northern & Eastern India. Out of 56 operational

Pizza Hut restaurants in the country 27 restaurants are owned and run by its

company. These restaurants are located at Defence Colony, Alaknanda, Vikas

Puri, Green Park, Karol Bagh, New Friends Colony, Connaught Place, Basant

Lok, Greater Kailash, Jaipur (2), Agra, Noida (2), Faridabad (2), Chandigarh (2),

Ludhiana, Jallandhar, Amritsar, Gurgaon (3), Kushambi(Ghaziabd) and Kolkatta

(2).


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EDUCATION

The R K J Group has been associated with excellence in

education. It strongly believes that investment in quality

care and education for young minds is essential for the

future growth and development of our country. The

groups foray into the school education is intended to

provide exceptional opportunities for the development of the academic abilities of

the students. The schools run by the group encourage students to become

creative, innovative and imaginative. They have a wide range of co-curricular

activities, which are as important as the academic disciplines.

School life merges with a plethora of activities to suit every

schedule, talent and interest in the areas like indoor and outdoor games,

swimming, art and culture, music and drama, Yoga and martial arts, community

service, etc. The school's approach to education has been designed to ensure

that the students realize their true potential and grow up to become complete

individuals and responsible citizens.


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The Group has entered into a join venture partnership withModern Montessori International (MMI) Singapore, to open

pre-school educational institutions across the country.

Forming a new entity, Modern Montessori International (MMI)

India in which the Group will have 51 per cent equity stake,

the company invests Rs 200-crore investment in the Indian operations in the nextfive years.

MMI India plans to open four schools by April 2004 and as

many as 14 schools by 2005. The company will be opening its first school in

Gurgaon. The long-term agenda includes.

The R K J Group has been associated with excellence ineducation. It strongly believes that investment in quality care and education for

young minds is essential for the future growth and development of our country.

The groups foray into the school education is intended to provide exceptional

opportunities for the development of the academic abilities of the students. The

schools run by the group encourage students to become creative, innovative andimaginative. They have a wide range of co-curricular activities,


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VARUN BEVERAGES LTD.

COMPANY PROFILE

Varun Beverages Ltd. is a FOBO Franchisee Oriented Bottling Operation of

Pepsi, headed by Mr. Ravi jaipuria.

Year of establishment 1993

Corporate Office F-34, Sec-6 Noida (U.P.)

Manufacturing Facilities (a) Varun Beverages Ltd.

Surajpur plant, Greater Noida (U.P.)

(b) Agra Beverages Agra (U.P.)

(c) Varun beverages, Jaipur (Raj.)


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VARUN BEVERAGES LTD.

Mr.. R.K. Jaipuria who heads Varun Beverages Ltd. and has

been adjudged Best Pepsi Bottler of the world for the current year. He was

presented with the Donaid M. Kondell Bottler of the year award, the highest

honour to any franchisee.

He is thoroughly experienced in setting-up and running

Pepsi Cola Bottling Plant in India. The past experience of the family in beverage

industry is since the sixties when it had the first franchise at Agra. Family has in

total 12 bottling plants in Indian and produces and markets 40% of the Pepsi

requirement in India. The plants are located at Greater Noida, Jaipur, Delhi,

Agra, Nagpur, Hyderabad, Raipur, Vishakapatnam, Guntur, Bhopal and Cuttack.

Group also has got franchise for Kwality Walls Ice Cream from Brooke Bond

Lipton India Limited. As Franchisee for Kwality Walls Ice Cream from M/s Brooke

Bond Ltd

1. The group caters to the ice creams demand for the state

of U.P The group owns state-of- art facilities to manufacture Ice Cream at

Agra. Recently Group has also signed a franchise agreement with Tricon

Restaurants (India) Pvt Ltd to start a chain of restaurants in northern India


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COMPANY PROFILE

VISION OF THE COMPANY:

Satisfying the end consumer, and provide value to each

penny he is spending in buying cold drink.

MISSION OF THE COMPANY:

To provide quality soft drink to the consumer or market.

PEPSI-COLA COMPANY, HEADQUARTEREDIN NEW YORKISTHEGLOBALBEVERAGEDIVISION

OFPEPSICO. INC.

Pepsi-Cola was founded at the turn of the century by Caleb

Bradham, a New Bern, N.C. druggist who first formulated the beverage. Today,

Brand Pepsi and other Pepsi-Cola North America products including Diet

Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands account for nearly

one-third of total soft drink sales in the United States, a consumer market totalingabout $56 billion. Pepsi-Cola beverages are available in about 170 countries.

Pepsi Cola North America also makes and markets ready to drink iced teas and


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PepsiCo. Mission Statement:

PepsiCo's overall mission is to increase the value of our

shareholder's investment. We do this through sales growth, cost controls and

wise investment of resources. We believe our commercial success depends

upon offering quality and value to our consumers and customers; providing

products that are safe, wholesome, economically efficient and environmentally

sound; and providing a fair return to our investors while adhering to the highest

standards of integrity.


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Environmental Commitment

Pepsico. Inc. serves consumers in two major businesses:

beverages and snack foods. The company consists of Pepsi-Cola Company, the

worlds second largest beverage company, Tropicana Products, Inc. the worlds

largest marketer and producer of branded juices and Frito-Lay Company, the

worlds largest manufacturer and distributor of snack chips. Pepsico. brand

names are among the best known and our operations reach every corner of the

world.

As a consumer products company, Pepsico. does not

have the major environmental problems of heavy industry. Our biggest environ-

mental challenge is packaging generated by our products. Packaging is

important to public health and a critical component of the distribu-tion system that

delivers products to consumers and commercial establishments. To meet both

consumer demand and safeguard the environment we recycle reuse and
http://opt/scribd/conversion/tmp/scratch6663/enviroco.pdfhttp://opt/scribd/conversion/tmp/scratch6663/enviroco.pdf


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CORPORATE OVERVIEW:

Pepsico. Inc. is among the most successful consumer products company in the

world, with 1999 revenues of over $20 billion and 1,16,000 employees. Thecompany consists of: Frito-Lay Company, the largest manufacturer and

distributor of snack chips; Pepsi-Cola Company, the second largest soft drink

business and Tropicana Products, the largest marketer and producer of branded

juice. Pepsico. brands are among the best known and most respected in the

world and are available in about 190 countries and territories.

Some of Pepsico.'s brand names are 100 years old, but the

corporation is relatively young. Pepsico. Inc. was founded in 1965 through the

merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998.

Pepsico.'s success is the result of superior products, high

standards of performance distinctive competitive strategies and the high integrity


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PEPSICO. HEADQUARTERS:

PepsiCo. Inc. World Headquarters is located in New York

City. The seven-building headquarters complex was designed by Edward Durrell

Stone, one of America's foremost architects. The building occupies 10 acres of a

144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a

world acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth

century art, and features works by masters such as Auguste Rodin, Henri

Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro

and Claes Oldenberg. The gardens were originally designed by the world famous

garden planner, Russell Page. The grounds are open to the public, and a visitor's

booth is in operation during the spring and summer.


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BEVERAGES

Pepsi-Cola Company:_-

PepsiCos beverage business was founded at the turn of the

century by Caleb Bradham, a New Bern, NC druggist who first formulated Pepsi-Cola. Today consumers spend about $32 billion on Pepsi-Cola beverages. Brand

Pepsi and other Pepsi-Cola products - including Diet Pepsi, Pepsi-One, Mountain

Dew, Slice and Mug brands - account for nearly one-third of total soft drink sales

in the United States, a consumer market totaling about $58 billion.

In 1992 Pepsi-Cola formed a partnership with Thomas J.

Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the

United States. Outside the United States, Pepsi-Cola Company's soft drink

operations include the business of Seven-Up International. Pepsi-Cola

beverages are available in about 160 countries.

Pepsi Cola provides advertising marketing sales and


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Pepsico. Products:

PepsiCo. Has hundreds of brands. These are some of the best known.

Pepsi-Cola Brands

Pepsi-Cola

Diet Pepsi

Mirinda

Mountain Dew

Lipton Teas (Partnership)


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INDUSTRY PROFILE (INDIA)

Pepsi, for once on the defensive, is getting lucky the men in blue arent

just looking cute, theyre rocking.

The glass will not crack this summer. Crates will not melt either,

as coke and Pepsi vow to keep them chilled and moving all the time. Theres

frenzied excitement at Pepsi. This year, believe analyst, will be different. After all,

soft drinks have hit the magical price point of Rs 5. And the two cola majors see

hords of sticky consumer looming large. The agenda before the two cola giants is

to expand the market, rather than indulge in a muddy street fight.

For years, soft drink rivals have been gnawing at each other, sneering at each

others claim and counter claim, comparing market shares, finding flaws in the

methodologies of retail audits and making a noise about them, whenever they

are favorable. In this age old rivalry there was little for consumers to cheer about.

They found it about as interesting as youd find a neighborhood

brawl.But something changed a few months ago. In October last year coke


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Current situation is that the soft drinks have hit the magical priceof Rs. 5; agenda is to expand the market penetration deeper into the existing

one.

KEY POINTSKEY POINTS

BASIS COKE PEPSI

Strategies used

1) Investment

Firstly, it reduced the

price to Rs.5 for 200ml to

attract new customer

with rural market support

by making it available at

the price of Tea, Coffee

etc.

It followed that to catch

new consumer and to

increase availability of

product to satisfy demand

which finally will lead to

have in-depth penetration

in homes.


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Brand Range

New Launch

AMBAssador

Coca-Cola

Thums-up

Limca

Fanta

Chota Coke at Rs 5

Pepsi

Mirinda

7-up

Mountain Dew

500 ml Pepsi ( Diet Pepsi)

Mountain Dew

2 liter PET Bottle

COMPANY PROFILE: -

VISION OF THE COMPANY


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America, manufacturer and marketer of ready-to-eat cereals and other foodproducts. PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is

relatively young. PepsiCo was founded in 1965 through the merger of

Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged

with The Quaker Oats Company, including Gatorade, in 2001.

PepsiCos success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high integrity of our

people.

Our mission is 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.


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GLOBAL PARTNERS

Frito-Lay North America and Frito-Lay International

PepsiCo's snack food operations had their start in 1932

when two separate events took place. In San Antonio, Texas, Elmer Doolinbought the recipe for an unknown food product a corn chip and started an

entirely new industry. The product was Fritos brand corn chips, and his firm

became the Frito Company.

That same year in Nashville, Tennessee, Herman W. Lay

started his own business distributing potato chips. Mr. Lay later bought thecompany that supplied him with product and changed its name to H.W. Lay

Company. The Frito Company and H.W. Lay Company merged in 1961 to

become Frito-Lay, Inc.

Today, Frito-Lay brands account more than half of the U.S.

snack chip industry.PepsiCo began its international snack food operations in

1966. Today, with operations in more than 40 countries, it is the leading

multinational snack chip company, accounting for more than one quarter of


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chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks.Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers.

Pepsi-Cola North America and PepsiCo Beverages International

Caleb Bradham, a New Bern, North Carolina druggist,

who first formulated Pepsi-Cola, founded PepsiCos beverage business at the

turn of the century. Today consumers spend about $33 billion on Pepsi-Cola

beverages. Brand Pepsi and other Pepsi-Cola products including Diet Pepsi,

Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands account for

nearly one-third of total soft drink sales in the United States, a consumer market

totaling about $60 billion.

Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina

bottled water, Fruitworks and All Sport.

In 1992 Pepsi-Cola formed a partnership with Thomas J.

Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the

United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee

through a partnership with Starbucks.


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PepsiCo Beverages International also produces, sells and distributes Gatoradesports drinks as well as Tropicana and other juices internationally.

Pepsi-Cola provides advertising, marketing, sales and

promotional support to Pepsi-Cola bottlers and food service customers. This

includes some of the world's best-loved and most-recognized advertising. New

advertising and exciting promotions keep Pepsi-Cola brands young.

The company manufactures and sells soft drink

concentrate to Pepsi-Cola bottlers. The company also provides fountain

beverage products.

Gatorade/Tropicana North America

Anthony Rossi as a Florida fruit packaging business

founded Tropicana in 1947. The company entered the concentrate orange juice

business in 1949, registering Tropicana as a trademark.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

companys flagship product.In 1957 the name of the company was changed to


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acquired by the Quaker Oats Company in 1983 and became a part of PepsiCowith the merger in 2001.

QUAKER FOODS NORTH AMERICA

The Quaker Oats Company was formed in 1901 when several

American pioneers in oat milling came together to incorporate. In Ravenna, Ohio,

Henry D. Seymour and William Heston had established the Quaker Mill

Company and registered the now famous trademark. Seymour wanted his

product to be a symbol of honesty, integrity and strength. The figures of a man in

Quaker clothes became the first registered trademark for breakfast cereal and

remain the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart

and his son, Robert, and their partner, George Douglas, operated the largest

cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King,"

had founded German Mills American Oatmeal Company in 1856.

Combining The Quaker Mill Company with the Stuart and

Schumacher businesses brought together the top oats milling expertise in the

country as The Quaker Oats Company. The first major acquisition of the


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CAREER OPPORTUNITIES AT

PEPSICO. WORLDWIDE HEADQUARTERS:

Pepsico., Inc. is a worldwide leader in vast and growing markets: beverages,

snack foods and juices. Our company's brands, which include Pepsi-Cola, Frito-Lay and Tropicana, are among the best known and most successful in the world.

Our continued growth has created outstanding career opportunities for talented

professionals in a variety of specialized fields at our corporate world

headquarters, located in NEW YORK. We are always looking for good people in

the areas of: Information Technology

Treasury

Tax

Human Resources

Law

A ti


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SWOT ANALYSIS

STRENGTHS:

Company belongs to the FMCG sector so the demand will never die.

A large and strong distribution network. (In comparison to the other

competitive brand Pepsi is having better reach to the market.)

Professional and dedicated manpower. (Starting from the higher-level

management to the sales-man Pepsis employees is having great degree

of dedication and professional attitude towards selling the products. On

the other hand companies operational staff always try their maximum

strength to meet the demand and utilize the recourses to maximum.)

More emphasis on market penetration (Companies efforts of providing the

Pepsi and other products to the customers doorstep are working vis--vis

wherever the transportation is not possible dealers are appointed).

In comparison to Coca-Colas red color, which is brighter and have more

visibility Pepsis blue color provide sense of relax ness in the bright sunny

day.


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WEAKNESS:

Coca-Colas red color has more visibility than Pepsis blue color. (Because

of the bright color of Coca-Cola it is more visible even from the distance

as compared to Pepsi)

Pepsis sinages are far more scattered as compared to Coca-Cola.

(Because of this at some places it looks that the market is captured by

Coca-Cola.).

Low plant capacity because of which company is not able to meet its

demand during the peak season (Varun Beverages India Ltd., Pepsis

Greater Noida plant has one continuous assembly line for preparing tetra

and four continuous assembly lines which are filling around 15,000

bottle/day, which is insufficient to complete the demand during the peak

seasons.).

Lesser plant utilization during the off-peak seasons (During the winterseason as the demand is very low, plant and resource utilization goes

down.)


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In the rural areas Pepsico.s distribution network is far stronger vis--vis toany of the competitor. Therefore it is viable to make it more stronger,

as this can restrict the entry of the other brands in the rural market.

Kids demand for the Mirinda more as compared to any other orange flavor

soft drink brand.

With the launch of slice tetra Pepsico. has entered in to one more segment o soft

drink beverages, which was more or less captured by the Frooti till now.

THREATS:-

Not able to meet the market demand during the peak season. (As theplant capacity is very low the company is not able to meet the existing

demand during the peak seasons).

There is lot of complaints are coming up about the impurities or leakage of

gas or leakage of carbonated water. (Within the last 30 days I met around

50 such complaints because of which retailers were very angry with thecompany).


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MARKETING STRATEGIES

1) Pepsi sales club:

This club is for the retailers. In this approach retailers are given some points

once in a month depending upon how they are using the display material

provided by the company to them. This material consists of Fridges, DPS

Boards, Glow Sign Boards, Display Bottles (500ml. 1lt. 2lt, Commodity

Packs, Stands, Posters etc. Depending upon these points retailers are

rewarded by certain gifts from the company.

The retailers are participating in these schemes curiously. But few of the retailers

found furious and angry because they had lost the points because of

miscommunication or lack of guidance. Therefore they need some kind of

guidance from the company. It would be a better idea that our salesman who

are distributing the beverages to the retailers can be equipped by the

appropriate training so that they can guide the retailers about how to use

their display material to 100% of their strength and able to tell about the new

schemes convincingly.

2) Schemes:


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These schemes keep on changing depending upon the stock. Beveragescompanies are giving these schemes despite of acute shortage of soft drink in

every segment to meet the competition, to make sure the availability their brands

and sometimes to satisfy and benefit the retailers and the end consumers.

3) Advertising:

Through the consumers survey it has been proved that the T.V. commercials and

sinages affect the consumer buying behaviour by approximately 70%. May be

only Pepsico. is investing huge finances in the T.V. commercials and other

sinages, big names of Indian film industries and sports heros are being

proposed to become the brand promoters and brand ambassadors. Sachin

Tendulkar, Amitabh Bachhan, Karina Kapoor and more are being offered hugeamount for carrying out the promotions. Pepsis T.V. advertisement in which

Sachin Tendulkar whistles at the end has maximum recall value. Other than this

world cup 2003 advertisement campaign that comprises of Sachin Tendulkar,

Shane Warne and Carl Hooper, advertisement campaign which comprises of

Amitabh Bachhan, Karina Kapoor and Adnan Sami and latest advertisements ofPepsi and Mountain Dew (Do the Dew) are very famous. Few of the areas

through which advertising is being done are as follows:


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4) Promotion through restaurants and cinema hall holdings:

Pepsi co. is tying up with different chains of restaurants and fast

food centers like Pizza Hut to promote the Pepsi and its other brands like

Mirinda, Mountain Dew etc. these restaurants are authorized to keep and use the

merchandising assets of Pepsi. Usually these kinds of restaurants and fast food

chains are in contract with the Pepsi Co., so that they cannot promote any otherbrand.

5) Merchandising assets:

Pepsi Co. also try to promote their brands by providing their

retailers and dealers some display items. Some of such items are as follows:

1. Fridges

2. Pepsi/mountain due stands

3. Display bottles

4. Posters

Pepsi Co. provide the above things to the retailers to use them in promoting


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6) Strengthen distribution network and promotions through

word of mouth through sales man:

Unlike the rival brand Coca-Cola, Pepsi Co. Basically depends upon its sales

man for promoting and launching the new as well as old brands because instead

of doing the business through dealers network like Coca-Cola, Pepsico. believes

in making and maintaining relations with retailers directly. Therefore salesman is

the very important part of Pepsico. marketing strategy.


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INTRODUCTION

Every year with the start of summers in India the real race to quench the thirst of

the consumers begins in the soft drink beverages industry. Every year millions

participate in it, either in the hot sun or sitting at home watching their, sipping the

soft drink and watching the newly launched advertisements.

Soft drinks manufacturers in India face a number of major problems, such as

distribution difficulties. Access to the 500,000 villages is limited due to the poor

road network. Inconsistent tax policies, the prevalence of duplicates, hefty

packaging costs and India's seasonal nature are other factors holding back

growth.

During New Year the two of the largest soft drink giants in India Pepsi and Coca-

Cola start experiments with products, packages, flavors and prices in an effort to

boost their market share. For this the biggies make huge investments in terms of

advertising, setting up new and more productive and modernized plants,

improving the distribution network to get better reach to the end consumer.


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Researcher have tried to find out answers to the above questions in his researchwork, which researcher has conducted during his summer training during the

partial fulfillment of his MBA programme. The objective of report is as follows: -


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RESEARCH OBJECTIVE

To find out to which extent merchandising assets are being used by the

retailers in promoting the products of the Pepsi.

To find out market demand of Pepsi vis--vis Coca Cola and Thums up.

To find out market demand of Mirinda-O vis--vis Fanta

To find out market demand of Mirinda-L vis--vis Limca, Mountain dew,

Sprite and 7up.

To find out market demand of Slice vis--vis Maaza.

To find out market comparison of all the available brands of the soft drinks


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RESEARCH METHODOLOGY

Researcher began his survey with route riding, i.e. travelling along with the sales

persons on his daily trip to service the retailers. Researcher asked the retailers

about their uses of Pepsi merchandises and try to Asses the market share thePepsis different brands. This is very important point as it gave me an inside view

of the whole setup and further on during the planning of any of the promotions.

Researcher was aware of the limitations and strengths of the environment he

would be working in. The various methods and principles adopted are listed

below:

Research Plan:

Date sources: sources of information are as follows:

(1) Primary sources

Whos the primary source??

Consumers are the primary source.

(2) Secondary sources Researcher collected secondary information from


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Research instrument:

Researcher used questionnaire as his instrument for conducting the survey.

Sampling Plan

(1) Sampling unit Retailers

(2) Sampling procedure- Simple Random Sampling Procedure.

Contact Method

Researcher personally contacted the retailers.


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DATA ANALYSIS & FINDINGS

FFIGUREIGURE 11

Out of Coca-Cola and Pepsi Beverages India Limited

whose GSB do you have ?

PBI

11%

Coca-Cola

14%

Both

5%

None

70%

PBI

Coca-Cola

Both

None


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FFIGUREIGURE 22

Ranking according to visibility - Pepsi ?

72%

14%

14%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

49%

38%

13%

Rank 1

Rank 2

Rank 3

72% of the shops having Pepsi GSBs got the 1strank according to their

visibility status on the other hand only 14% of the retailers got the rank 2nd

and 3rd each. This shows that retailers who got the GSB as display

material from the company are using them satisfyingly.


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FFIGUREIGURE 33

Out of Coca-Cola and Pepsi Beverages India Limited

whose DPS Board do you have ?

PBI

27%

Coca-Cola

8%

Both

3%

None

62%

PBI

Coca-ColaBoth

None


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FFIGUREIGURE 44


82%

18%0%

Rank 1

Rank 2

Rank 3


70%

18%

12%

Rank 1

Rank 2

Rank 3

82% of the shops having Pepsico. DPS Boards got the rank 1staccording

to their visibility status on the other hand 18% of the retailers got theranks2nd and nobody got the 3rd. This shows that retailers who got the

DPS Boards as display material from the company are using them


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FFIGUREIGURE 55

Out of the sample size, which has been covered 32 % of the shops, had

Out of Coca-Cola and Pepsi Beverages IndiaLimited

Whose Refrigerator do you have ?

PBI

32%

Coca-Cola30%

Both11%

Own27%

PBI

Coca-Cola

BothOwn


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FIGURE 6FIGURE 6


68%

24%

8%

Rank 1

Rank 2

Rank 3


33%

67%

0%

Rank 1

Rank 2

Rank 3

68% of the shops having Pepsico. refrigerators got the rank 1staccording

to their visibility status on the other hand only 24% of the retailers got the

ranks2nd and 8% of the retailers got the rank 3rd. This shows that retailers

who got the refrigerators as display material from the company are not usingthem satisfyingly.


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FIGURE 7FIGURE 7

PB I, 426

Coca-Cola, 33

0

50 0

1000

1500

2000

2500

3000

3500

4000

4500

PB I Coca-Cola

How m any Bottles of PB I/ Coca-Cola do you

yo ur fridg e

P BI

Coca-Col


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FFIGUREIGURE88

Availabity Comparision between Pepsi and Coca-Cola atthe Outlets - using Pepsi Merchandising

Asset

PBI56%

Coca-Cola44% PBI

Coca-Cola


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FFIGUREIGURE 99

Reasons for not optimum use of Refrigerator / Ice Box

at outlets ?

Shortage

13%

Problem of the

Empty bottle

17%

Irregularity of theSalesman

34%

Other

36%

Shortage

Problem of the Empty

bottle

Irregularity of the Salesman

Other


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FFIGUREIGURE 1010

Other Reasons for low optimum use of Pepsi's Assets

Low Demand34%

Smaller Fridge33%

Unfulfilledpromises fromthe Company

Representatives22%

Others11% Low Demand

Smaller Fridge

Unfulfilled promises from theCompany Representatives

Others


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refrigerators.

Out of the 36% other major reasons low demand (33%) and

lesser capacity refrigerators (34%) got the maximum share.

Despite of all the above there are even major number of

retailers who lame it to the unfulfilled promises from thecompany professionals.

FFIGUREIGURE 1111

Approximate sale of the retailer

40

50

60

70

80

90

100


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FFIGUREIGURE 1212

Approximate sale of the retailer

0.5 to 2

8%

3 to 5

46%6 to 10

28%

More Than 10

18%


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FFIGUREIGURE 1313

How the retailler gets display material from the

company ?

30

40

50

60

70


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FFIGUREIGURE 1414

How the retailler gets display material from the

company ?

Gift

40%

Sharing / Draft


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FFIGUREIGURE 1515

Market Demand of different packings of Soft-Drinks

2lt

26%

1lt

7%

500ml

14%300ml

23%

200ml30% 2lt

1lt

500ml

300ml

200ml

This gives us an indication, where the better prospects lies. In which

particular type of packing little innovation can do wonders. This providesus with an idea where we should concentrate.


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FFIGUREIGURE 1818

Mirinda-O, 260

Fanta, 285

240

250

260

270

280

290

Mirinda-O Fanta

S1

Market Demand of Softdrink ( Orange )


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FFIGUREIGURE 1919

Market Demand of Softdrink ( Orange )

Mirinda-O

48%

Fanta

52%

Sample size shows the comparison between the market demands of each

of Orange drink.

60%

40%


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FFIGUREIGURE 2020

Market Demand of Softdrink ( Lemon )

Mirinda-L27%

Limca

31%

Mountain Dew28%

Sprite

9%

7 Up

5%


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FFIGUREIGURE 2121

Mirinda-L, 735

Limca, 865Mountain Dew,

770 Sprite, 235

7 Up, 123

0

200

400

600

800

1000

Mirinda-L Limca Mountain

Dew

Sprite7 Up

S1

Market Demand of Softdrink ( Lemon )


of Lemon drinks available in the market

Limca in the lemon flavour with the market demand share of 31% is


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FFIGUREIGURE 2323

Market Demand of Softdrink ( Mango )

Slice, 300

Mazza, 290


of Mango drinks available in the market

Slice and Mazza is almost head to head with 52% and 48% market

demand. Though Slice is having 4% more share than Mazza.


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LIMITATION

Despite the possible efforts in conducting the research, there were

some unavoidable situations, which limited the scope of the project.

Considering the population, the sample taken for present study seems

small and hence further investigation may be required.

The sample taken for study was not of equal distribution so a

comparative study cannot be made.

Some of the retailers were non-cooperative in giving information, which

hampered the actual calculation.

Time available for research was very short so certain aspects have

been overlooked.

Retailers were hesitant to provide the complete information due to fear

of misuse of information.

Respondents may sometimes misinterpret the questions, leading to a

different answer.


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6. Though the GSBs and DPS Boards are being used by the retailers

satisfyingly but still there is need of the guidance for the retailers.

7. Schemes should be transparent and made clear to the retaikers.

8. As maximum number of retailers are selling around 3 to 5 crates

daily. Our schemes should be revolving around this percentage

only. And while formatting the different schemes this should be kept

in mind.

9. For this salesman can be provided with some kind of guidance/

training, so that they can clear the queries of the customers about

the different schemes/ proposals

10.Retailer benefit schemes, which the company launches time by

time during the whole year, must be made clear to all the retailers.


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74


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CONCLUSIONCONCLUSION

After conducting the research, Researcher found that there are two categories of

retailers. The first one is of those retailers, which just want to increase their

assets, for them the sale doesnt matter according to them they can onlyincrease the sale if the company will invest in them or in their shops. These types

f t il ill l k f th hi h i t i th h l A d if t

75


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these retailers must not do the false promises. Due to this retailers loose their

confidence in the company.

There is also the need of the transparent schemes and marketing mix that the

retailers can understand more properly.

QUESTIONNAIRE

Name of the SHOP ____________________ Tel No.

___________________________

ADDRESS

__________________________________________________________

1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?

76


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RANKINGACCORDINGTOVISIBILITY?

1 2 3

3 OUTOFCOCA-COLAAND PEPSIBEVERAGES INDIALIMITEDWHOSEREFRIGERATORDOYOU

HAVE?

A. PBI B COCA-COLA C BOTH D NONE

RANKINGACCORDINGTOVISIBILITY?

1 2 3

4 HOWMANY BOTTLESOF PBI DOYOUHAVEINYOURFRIDGE?

PBI TOTAL

~ 77 ~


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7 HOWDOYOUGETTHEDISPLAYMATERIALFROMTHECOMPANY?

a. SCHEMES B GIFT C SHARING / DRAFT D OTHER

8 PLEASERANKTHEFOLLOWINGACCORDINGTOTHEMARKETDEMAND?

( ) 2 LT. ( ) 1 LT ( ) 500 ML ( ) 300 ML ( ) 200 ML

9 PLEASERANKTHEFOLLOWINGACCORDINGTOTHEMARKETDEMAND?

A. ( ) PEPSI ( ) COCA-COLA ( ) THUMS-UP

B. ( ) MIRINDA-O ( ) FANTA

C. ( ) MIRINDA L ( ) LIMCA ( ) MOUNTAIN-DEW ( ) SPRITE

( ) 7-UP

D. ( ) SLICE ( ) MAAZA

~ 78 ~


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BIBLIOGRAPHY

Name of the books used for the reference and their authors.

1. Principles of Marketing - Kotler Philip

1. Research Methodology - Kothari C.R.

2. Market Research - Sharma D.D.

~ 79 ~


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MAGAZINES

4 PS

Time Education Magazine

Times of India

PRICE LIST

200 ML Rate-146/caret



600 ML(slice) Rate-456/caret

2000 ML Rate-369/pet

2000 ML(Miranda) Rate-324/pet

Tatra (slice) Rate 218 /pet

~ 1 ~


80/80

EDS FORMAT

S

.No.

Outlet

Name

Addres

s

Contact

Person

Chan

nel

Status

PBI/CCX

Glass VISI OYC ICE BOXSIGNAGE

Wall Paint DPS GSBPBI CCX PBI CCX OWN PBI CCX PBI CCX PBI CCX PBI CCX PBI CCX

starting pages of pepsi project

Documents