tt cluster distribution correction for pepsico india holdings pvt. ltd

8/11/2019 TT CLUSTER DISTRIBUTION CORRECTION For PEPSICO INDIA HOLDINGS PVT. LTD

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NEW DELHI INSTITUTE OF MANAGEMENT

SUMMER TRAINING

REPORT ON

TT CLUSTER DISTRIBUTION CORRECTION

For

PEPSICO INDIA HOLDINGS PVT. LTD

By

ABHISHEK PRASAD320

In Partial Fulfillment for the award of the degree

Post Graduate Diploma in Management

Batch 2013-15


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CERTIFICATE


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ACKNOWLEDGEMENT

I would like to express my deepest gratitude to all the people who helped me to

complete this project. I would like to thank my project guide Mr. Adeel Javaid

giving me an opportunity to complete my SIP in PepsiCo. I would also like to give

my special thanks to my Industry mentor Mr. Ashish Tiwari for his continuous

support and guidance and for teaching valuable lessons and without whom this

report wont be possible.

I would also like to thank PepsiCo PSRs Mr. Anil Kumar Gera, Mr. Satish Sharma

and Mr. Sanjay Tripathi for helping me to understand the market, distribution &

the field work. I would like to thank my faculty mentor Prof. Anita Saxena for her

continuous guidance through my internship and helping me in value addition to my

project report.


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DECLARATION

I, Abhishek Prasad, student of New Delhi Institute of Management

Batch(2013-15) declare that every part of the Project Report titled, TT

CLUSTER DISTRIBUTION CORRECTION submitted by me is

original work done by me under the guidance of Adeel Javaid ,Area

Sales Manager of Tropicana.

DATE : 11.07.2014 Abhishek Prasad


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EXECUTIVE SUMMARY

The project has been a great learning experience for me, at the same

time it gave me enough scope to implement my analytical ability.

As my project was TT CLUSTER DISTRIBUTION CORRECTION

the report contains the details about the company as well as how the

distribution system works, what things the company do to promote its

products for their potential customers. The territories been covered have

been shown and what have been done to increase the sales and

distribution of Tropicana and Gatorade via displays, banners etc. ,various promotional schemes etc. have been stated. A SWOT analysis

has been done in order to identify the companys strengths weaknesses

etc.

All the topics have been covered in a very systematic way. The language

has been kept simple so that even a layman could understand. All the

data have been analyzed well.


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INTRODUCTION

Industry Profile

India has a population of more than 1.150 billion which is just behind China.

According to the estimates, by 2030 India population will be around 1.450 Billion

and will surpass China to become the World largest in terms of population.

Beverage Industry which is directly related to the population is expected to

maintain a robust growth rate. The price stability throughout the year has

contributed to the increase in domestic liquor sales. According to Dabur, the fruit

beverages industry in India now stands at Rs 1100 crores (approx. Euro 180

million) and the market has grown at the rate of 30% where Dabur India, through

the new launch Real Burrst, is looking at establishing a market share of 4-5% innext 2-3 years .Part of the industry of fast moving consumer goods is also the

beverage industry. The total beverage industry in India is being estimated to grow

at 17% this year, according to experts. "Food and beverages segment has not

suffered despite the slowdown in the economy. FMCG in our stores has done very

well. In fact we registered 10-15% growth in this segment last year said a

spokesperson at spencer Retail ltd. Beverage majors like Coca Cola India, for

example, again reported growing sales.Coca-Cola in India reported a solid first

quarter 2009 results not only despite a challenging economic environment, but alsowith unit case volume increasing by 31%.And 8 quarters out of 11 quarters had a

double growth.

To foreign observers of the market, these figures might sound unbelievable, as

Western markets are saturated and have not seen such figures for long time. But in

India, various positive factors drive the beverage markets. One is the rising number

of people in the middle class with extra money to spend on new beverages like

wine, new brands of imported whiskey, or the fancy energy drinks, some of which

are really good to enable people to work longer, to listen longer during

conferences, and even to party longer and have fun. Leader in this segment is Red

Bull, but some other good and very effective drinks one even very healthy - are

already or soon entering the market. Another factor is the sheer size of the number

of people in India. Even the rural households, as long as the monsoon is good, get


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purchasing power and can participate in consumer markets. Where ever the

purchasing power is still not big


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enough, companies offer smaller packs for Rs. 10 or Rs. 5, especially to be seen in

the snack market.

Indian beverage industry already accounts for about ten per cent of global beverage

consumption today. This means that the country has the third-largest beverage

consumption after the USA and China. But that is not the end of the road. Marketanalyses indicate that beverage sales in India will be increasing by more than 60

per cent between 2008 and 2012. . Since India is (still) a country of tea and coffee

drinkers, packaged cold drinks have enormous potential. Packaged water, beer,

spirits and carbonated drinks are recording what rates are in some cases high

double-digit growth. All in all, annual per capita consumption of packaged

beverages is supposed to triple from 2.6 litres in 2006 to 8.7 litres in 2012.

The total soft drink (carbonated beverages and juices) market is estimated at 284

million crates a year or $1 billion. The market is highly seasonal in nature withconsumption varying from 25 million crates per month during peak season to 15

million during offseason. The market is predominantly urban with 25 per cent

contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks

market. Mineral water market in India is a 65 million crates ($50 million) industry.

On an average, the monthly consumption is estimated at 4.9 million crates, which

increases to 5.2 million during peak season.

There are several reasons behind the growth the Indian Packaged juices category

has realized; some of these are mentioned below. Changing consumer lifestyles: Given the change in eating habits, the wider

global exposure, and the growing time-poverty, has provided a fillip to the

convenience food segment. Again, consumer preferences are shifting

towards healthier lifestyles. As a result, the packaged juices market has

charted a high growth trajectory thanks to its easy availability, anytime-

anywhere consumption, and convenience. Juices are often seen to be quick,

yet nutritional, fillers.

Increased Health Awareness: The rising awareness about heart- andweight-related health issues, especially among teenagers and young adults,

has propelled the consumption of packaged fruit drinks. There is also a

greater preference for these healthier' beverages than carbonated soft drinks.

Hygiene matters: Juices are healthy only when prepared hygienically.

Packaged juices from trusted national and international brands have usually


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been prepared and certified to be in accordance with health and safety

regulations. They thus underpin the confidence of consumers in considering

them to be a healthy and convenient option, as compared to the fresh juices

available at local joints and street stalls.

Growing category of informed buyers: There is a growing category ofinformed buyers who are able to distinguish between fruit-based beverages

and fruit juices. These consumers are health conscious, highly aware, and

have higher disposable income. They have, therefore, led the demand for

100% fruit juices in the past couple of years.

Rising Disposable Incomes: In the past few years, there has been a sharp

change in the number of nuclear families, in tandem with a surge in the

number of working couples, which has led to higher disposable incomes.

This has aided the affordability of packaged fruit juices, which are fastreplacing fresh, homemade juices and becoming a compulsory item on

breakfast tables.

Booming modern retail: The dynamics of growth in the fruit-based

beverage space are attributed to modern retail and alluring shelf displays

which drive impulse purchases.

Habitual purchase: The trend of consumers evolving from fruit drinks in

bottles to sweetened juices to 100% packaged juices has been observed

largely in the past couple of years. Consumers are buying in greater

quantities, for household consumption, and buying fruit juices is becoming

more of a habitual purchase than a need-based purchase.

Introduction to new flavors: To kindle consumers interest in the category

and also to cater to diverse and changing tastes, fruit juices providers are

introducing new flavors and packaging options.

Dabur is the market leader in the Indian packaged juices market with its brandsReal and Real Activ. It accounts for ~55% of the total packaged juices market, and

is followed by PepsiCo with a ~30% share. Other players include Parle, FreshGold, and Godrej.Some of the other brands of fruit juices and drinks include Frooti, Appy, Mazza,

Minute Maid, Slice, Fresh Gold, and Del Monte. Considering the attractiveness of

the segment, such diversified consumer food companies as ITC are working

towards a foray into Packaged Juices.


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Company Profile

PepsiCo, Inc.is founded by Donald M. Kendall, President and Chief ExecutiveOfficer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer

of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in

the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc.

was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in

1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932.

Herman Lay is chairman of the Board of Directors of the new company; Donald

M. Kendall is president and chief executive officer. The new company reports

sales of $510 million and has 19,000 employees.

Mission

Our mission is to be the world's premier consumer products company focused on

convenient foods and beverages. We seek to produce 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.

Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in

which we operate - environment, social, economic - creating a better tomorrow

than today."

Our vision is put into action through programs and a focus on environmental

stewardship, activities to benefit society, and a commitment to build shareholder

value by making PepsiCo a truly sustainable company.

Performance with Purpose


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At PepsiCo, we're committed to achieving business and financial success while

leaving a positive imprint on society - delivering what we call Performance with

Purpose.

Our approach to superior financial performance is straightforward - driveshareholder value. By addressing social and environmental issues, we also deliver

on our purpose agenda, which consists of human, environmental, and talent

sustainability.

Good for All Is Good for Business

At PepsiCo, Performance with Purpose means delivering sustainable growth by

investing in a healthier future for people and our planet. As a global food and

beverage company with brands that stand for quality and are respected household

namesPepsi-Cola, Lay's, Quaker Oats, Tropicana and Gatorade, to name but a

fewwe will continue to build a portfolio of enjoyable and healthier foods and

beverages, find innovative ways to reduce the use of energy, water and packaging,

and provide a great workplace for our associates. Additionally, we respect, support

and invest in the local communities where we operate, by hiring local people,

creating products designed for local tastes, and partnering with local farmers,

governments and community groups. Because a healthier future for all people and

our planet means a more successful future for PepsiCo. This is our promise.


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PEPSICO PREMIUM

Tropicana

Tropicana Products, Inc.is an American multinationalcompany which primarily

makes soft drinks. It was founded in 1947 by Anthony T. Rossi in Bradenton,

Florida.Since 1998 it has been owned byPepsiCo.Tropicana's headquarters are in

Chicago, Illinois. The company specializes in the production of orange juice.

Carefully nurtured for over 50 years, Tropicana has matured into one of the most

respected beverage brands. Tropicana is the #1 brand in packaged 100% Juice* in

the world in 2011 in off-trade volume. It is today available in 63 countries. Since

1998, Tropicana has been owned by PepsiCo, Inc. Tropicana Premium Gold was

re-launched as Tropicana 100% in 2008. Tropicana works with more than 12

established Florida groves, which are selected for sandy soil conditions andadvanced irrigation practices. The company is the largest single buyer of Florida

fruit and processes about 60 million boxes of fruit. Once the fruit is picked,

oranges are hand graded and any fruit that doesnt meet quality inspections is

removed.

TROPICANA

GATORADE

HIMALAYAN

QUAKER OATS

LIPTON ICE TEA
http://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Anthony_T._Rossihttp://en.wikipedia.org/wiki/Bradenton,_Floridahttp://en.wikipedia.org/wiki/Floridahttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Orange_juicehttp://en.wikipedia.org/wiki/Orange_juicehttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Floridahttp://en.wikipedia.org/wiki/Bradenton,_Floridahttp://en.wikipedia.org/wiki/Anthony_T._Rossihttp://en.wikipedia.org/wiki/Company


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The oranges are then washed and the orange oil is extracted from the peel to

capture the from the orange taste, which is later blended into the juice for

consistent quality and flavor. The oranges are squeezed and the fresh juice is flashpasteurized. Tropicana developed flash pasteurization to minimize the time the

orange juice is exposed to heat while providing maximum nutrition and flavor.

Oranges have a limited growing season, and because there is demand for juice year

round, an unspecified quantity of juice (some or potentially all) is deaerated and

then stored for future packaging in chilled tanks to preserve quality. The aseptic

tanks protect the juice from oxygen and light and hold the liquid at optimal

temperatures just above freezing to maintain maximum nutrition. It has been

reported that deaerated juice no longer tastes like oranges, and must be

supplemented before consumption with orange oils. Tropicana no longer uses

orange juice from Brazil to supplement the Florida crop. Pulp may be blended in at

this point, too, depending on the product.

Tropicana persists in coloring certain of their products with Carmine - a dye

produced from the crushed bodies of cochineal beetles. It is advisable to use

caution when purchasing their products, particularly any of that are reddish, if one

finds ingestion of this material objectionable.

Tropicana's carton and plastic packaging are engineered to maintain quality and

freshness. The company's packaging materials ensure the juice stays fresh inside

the package by preventing outside moisture and light from affecting its quality.

Gatorade

The Gatorade Company, Inc. is a brand of sports-themed beverage and food

products, built around its signature line of sports drinks. Gatorade is currently
http://en.wikipedia.org/wiki/Sports_drinkhttp://en.wikipedia.org/wiki/Sports_drink


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manufactured by PepsiCo and distributed in over 80 countries. The beverage was

first developed in 1965 by a team of researchers at University of Florida, to

replenish the combination of water, carbohydrates, and electrolytes that the

school's student-athletes lost in sweat during rigorous athletic competitions.

Originally produced and marketed byStokely-Van Camp,the Gatorade brand waspurchased by the Quaker Oats Company in 1983, which itself was bought by

PepsiCo in 2001. As of 2010, Gatorade is PepsiCos 4th-largestbrand,on the basis

of worldwide annual retail sales. It competes with Coca-Cola's Powerade and

Vitamin water brands worldwide, and with Lucozade Sport in the United

Kingdom. Within the United States, Gatorade accounts for approximately 75

percent market share in the sports drink category.

Gatorade Thirst Quencher is the most thoroughly researched sports beverage in the

world. Gatorades proven, scientific formula has not changed for more than 40

years and continues to quench thirst, replace fluids and electrolytes, and provide

carbohydrate energy to help athletes get the most out of their performance.

Gatorade comes in three distinct flavours Orange, Lemon and Blue Bolt. Gatorade

is available in RTD (Ready to Drink) and Sports Mix (Powder sachet) formats.

Himalayan

Redefining the mineral water category in India, Himalayan brings to you mineral

water which is endowed with the goodness of and wellness of vital organic

minerals. The water is untouched and unprocessed, with a unique taste acquired

over 20 years of percolation, as it makes its way to the underground aquifer located

in the Shivalik range of the Himalayas.

The appeal of this brand lies in its high quality natural water and premium

imagery. It plays upon the themes of being natural and pure in an artificial world which is the perfect beverage of choice among wellness seekers. It is natures

goodness gathered over 20 years in the Himalayas. Now you can savour the taste

that took Himalayas 20 years to create!
http://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/University_of_Floridahttp://en.wikipedia.org/wiki/Carbohydrateshttp://en.wikipedia.org/wiki/Electrolyteshttp://en.wikipedia.org/wiki/Stokely-Van_Camphttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Poweradehttp://en.wikipedia.org/wiki/Vitaminwaterhttp://en.wikipedia.org/wiki/Lucozadehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Lucozadehttp://en.wikipedia.org/wiki/Vitaminwaterhttp://en.wikipedia.org/wiki/Poweradehttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Stokely-Van_Camphttp://en.wikipedia.org/wiki/Electrolyteshttp://en.wikipedia.org/wiki/Carbohydrateshttp://en.wikipedia.org/wiki/University_of_Floridahttp://en.wikipedia.org/wiki/PepsiCo


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with eight juices: orange, mango, pineapple, grape, guava, mixed fruit, tomato and

litchi. . Real' was recognized as the 'Fastest growing brand' for 2001-02 in the first

ever beverage industry seminar in India. Real Fruit Juice is a market leader in

packaged fruit juice category commanding more than 55% market share.

Dabur Foods not only leads with innovation in its product offerings but also hasnow taken the lead in redefining traditional marketing dynamics in the segment.

Dabur Foods has also realigned the flagship brand, Real

so that the look and feel of the brand became more

effective in communicating its core benefit i.e. Real tastes

like eating a fruit. The first step was the re-launch of Real

in a new, vibrant and international look designed to

maximize drool appeal.

The second step was to change the brand communicationfor which three different TVC's are being used to talk to distinct audiences i.e.

school kids, mothers and young professionals in varied real life situations.

Overall strategy of Dabur Foods is to offer consumers a healthier juice and the

widest choice possible.

Real Activ

The Real fruit juice is targeted towards the housewife and kids and the Real Activejuice is targeted towards the young adults between the age of 24-35. They are very

clearly focussed on the in-home segment and soft drink is more out- of- home

impulse purchase.In fact, the segments for Real as well as Activ are the same.

What one needs to do is to capture the target consumers and

lure them to Real, make them Real loyal.

Real Fruit Juice is a packaged, 100 percent preservative-free

fruit juice brand offering consumers the great taste and

wholesome nutrition of freshly squeezed juice in a hygienic

and attractive pack. Dabur Foods is the only juice company in

India and among the top 5 companies in the world to use the

latest spin cap tetra pack, cold fill technology and spill-proof double seal cap for

packaging. Real Fruit Juice is India's first and only packaged Fruit Juice brand to

get SGS (Societe Generale de Surveillance) certifications for high safety standards


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used in packaging that conform to the stringent HACCP and GMP standards. The

brand has also won the award for 'Highest sales growth achieved by a brand' in the

non-dairy category.

Real Marketing has been the leader and the driving force for Dabur. Much of

Dabur Foods youthfulness comes from Real. The money that has been put behindits advertising has created a perception that has boosted the companys overall

image. (Currently, more than two-thirds of Dabur Foods Rs 12-crore ad budget is

spent on Real.)

DelmonteBrand Del Monte has 118 years of rich international heritage during which it has

been synonymous with quality and taste. The brand originated in the US and is

now available all across the globe. The Del Monte range of branded processedfood and beverage products includes Fruit drinks,

Ketchup & Sauces, Packaged Fruits and the Italian

Range consisting of Pasta, Olive Oil and

Olives/Jalapenos and a Culinary range for both B2B

and B2C market.

Del Monte was brought to India in 2007 by a joint

venture between Bharti Enterprises and Del Monte Pacific Ltd. The JV is called

FieldFresh Foods Pvt Ltd.

Indias leading business group, Bharti Enterprises, has interests in telecom, agri-

business, and retail. With over 228 million customers, Bhartis flagship unit,

Airtel Ltd., is Indias leading private sector provider of telecommunication

services.

Del Monte Pacific Limited is listed in the Singapore Stock Exchange and has

exclusive rights to the Del Monte brand for processed food and beverage productsin the Indian subcontinent and in the Philippines where it enjoys leading market

shares for canned pineapple juice and juice drinks, canned pineapple and tropical

mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup. Fruit Drinks are

available in these flavours : Pineapple ,Pineapple Orange,Four Seasons -

Pineapple, mango, orange and guava ;Orange ,Green Apple,Mango.


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FRESCA

Fresca is Fast Growing Juice Brand in India Today.

Fresca offers variety of packaged juices from the Rich

Indian Mango to Guava, Litchi, Nimbu Pani, AmbiPana.

The Juices are produced keeping in mind the tastes of

Indian Consumer, Extreme care is taken in producing the

Juices with State of the art Automatic plant which eliminates Human Touch. The

plant also undertakes steps such as sugar filtration, homogeniser, pasteurizer, on

line CIP , meant for cleaning all pipe line and unit on line. Processes such as

Rinsing, Bottling, Capping and Labeling are all Automatic.

Made from best quality fruits, Fresca Juices do not have artificial flavours and

preservatives. Along with great taste, the juices offer you Instant Energy and re-

vitalization of fluids in your body as some of our juices are loaded with Vitamin C

& other important nutrients that keep you active all day long.

Fresca is a part of Shri Bankey Behari Foods, is a sister concern of Shamsons

Foods. We are a leading manufacturer, exporter and importer of Jams, Pickles,

Tomato Ketchup, Salt, Pepper, Chutneys and Syrups in blister pack and sachets

suitable for catering to widespread sectors involved in the Food/Hospitality

Industry.

ONJUSTUNIP AGRO LIMITED

Incorporated in September of 2004, the company started with one flavor under the

classic Onjus range with distribution in two cities namely, Delhi and Mumbai.

Over the years, Tunip Agro Limited has grown from strength to strength,

becoming the third largest brand in the fruit-based beverages market in the country.

The company has seen exponential growth and today offers 16 flavours under three


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different product ranges across India through over 300,000 retail outlets and 350

distributors.

2013 has been a Milestone year for the company with the inauguration of Tunip

Agro Limiteds state-of-the-art manufacturing facility in Sri Lanka under its fullyowned subsidiary, Tunip Lanka Pvt. Ltd. This is also the year that Onjus goes

international with the expansion of distribution to neighboring countries Nepal and

Sri Lanka.

With the Head office in Mumbai, Tunip Agro Limited has a team of over 200

driven professionals working across the length and breadth of India.

Recent acquisitions

The acquisition of Wimm-Bill-Dann in 2011 and the launch of our Mller-Quaker

joint venture in the U.S. in 2012 provide us with new platforms in value-added

dairy. We're excited about the strong growth prospects of this category.

New value-added dairy offerings in 2012 included Chudo drinkable yogurt in

Russia and Mller Quaker Greek Corner yogurt in the U.S.

Future plan of expansion

PepsiCo chairman and CEO Indra Nooyi announced plans to invest Rs. 33,000

crore in India by 2020. The proposal "is PepsiCo's vote of confidence in India's

future", she said shortly after meeting finance minister P Chidambaram in Delhi on

Monday.

This is the largest investment proposal by any company during the term of UPA-II,

comfortably beating Unilever's $3.2 billion (about R19,000 crore) stake purchase

in Hindustan Unilever in July this year, and comes at a time when the government

is pulling out all stops to encourage investments to kickstart the economy.

"India is a country with huge potential and it remains an attractive, high-priority

market for PepsiCo. We have built a highly successful business in India and we


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believe we have only scratched the surface of the long-term growth opportunities

that exist for PepsiCo and our partners," the India-born Nooyi said in a statement.

Pepsi will invest in doubling its manufacturing capacity and ramping up its

delivery infrastructure across rural India. It has invested about $2 billion (about12,600 crore at current exchange rates) since 1990, when it entered the country and

has 42 plants across the country.

With eight brands and a turnover of more than Rs. 1,000 crore turnover here, India

is one of the top five markets of PepsiCo. Apart from soft drink brands such as

Pepsi, 7 UP, Mirinda and Mountain Dew, it also sells packaged snacks under the

Lehar, Uncle Chipps and Kurkure brands.

Partners in CSR

TERI - The Energy and Resources Institute

Partner in implementation of watershed management projects in Neelamangala and

Uttaranchal

ADI-Alternative Development Initiative

Partner in planning and implementation of Sustainable Water Resource

Development & Management (SWRDM) projects in Maharashtra, Andhra

Pradesh, Karnataka, Tamil Nadu, Haryana, Punjab and other States.

Exnora Green Pammal

Partner in Waste to Wealth Programmes

CAP Foundation

Partner in training and provide alternate livelihood options for Tsunami affected

communities in Andhra Pradesh and Tamil Nadu.

Swashrit Society

Partner in Get Active programmes, to promote active and healthy lifestyles among

kids


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Project Healing Touch

Partner in Mission Vijay II: Programme to provide ex-servicemen with

sustainable livelihoods

Youthreach India

Partner in People with Purpose programme

International Labor Organisation

Partner in creating and implementing its HIV/AIDS Workplace Policy

OTHER COMMUNITY INITIATIVES

PepsiCo IndiaAkshay Patra Partnership

PepsiCo India has partnered with Akshaya Patra, an NGO that supports the "Mid-

day meal" program launched by Government of India feeding over 1.4 million

underprivileged students every day of the school year, in 20 locations, across 9

states in India. For children belonging to the weaker economic sections of society,

a full meal, even once a day, is a strong incentive to stay in school.

PepsiCo India HIV/AIDS Initiative

PepsiCo India embarked on the HIV / AIDS journey in 2005, along with our

Technical partner The International Labor Organization (ILO), with the purpose of

spreading awareness amongst all our stakeholders. We have built the whole

program in a manner to build capacity within and externally and have focused on

the Each one Teach one approach to ensure sustainability.


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SWOT ANALYSIS

STRENGTHS

A financially strong company with Frito-Lays as a very strong brand, whichis a world leader in the snack chip industry having a 40% market share.

Promotional programmes which makes them world-wide leader in

marketing.

Diversification, which brings in economies of scale and other large financial

advantages.

Tropicana is the World #1 fruit juice brand

Providing 100% fruit juice at reasonable price and uses competitive pricing.

It has a very strong distribution system.

Tropicana is a premium product & provides with one of the best quality of

fruit juice.

It has the flexibility to adjust to new trends.

Comprehensive system of rewarding and educating its employees.

Diversified product portfolio.

Strong sales on convenient stores.

WEEKNESSES

Pepsi may be one of the weaknesses, since the share it has is 21% which is

much below than that of the Coca-Cola Company, with a 51% share.

Very less advertisements on the television.

REAL being the market leader consumer still prefer Indian brand.

Low awareness level among the Indian customers.


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OPPORTUNITIES

People slowly understanding the benefits of juices.

The health conscious people especially the youth preferring juice over soft

drinks thus bringing major shift in preferences.

Indian juice industry showing a great boom in the coming years.

THREATS

PepsiCo Beverages now has to compete in an aggressive market. Coca Cola

is no longer the only rival. Schweppes , Kraft etc are emerging as strong

competitors.

Less brand loyalty in non-CSD beverage market.

REAL is still market leader and a constant threat for Tropicana.

New brands such as Fresca, Delmonte etc are entering the Indian market.

Rising prices of various commodities and raw material is making it difficult

to sell at low prices and get the required profit margin.


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CLASSIFICATION OF MARKET: KANPUR

In KANPUR Tropicana is sold in 2 trades

Traditional Trade-Traditional Trade is defined as all that trade that flows

through traditional outlets, such as kiosks, corner shops, local mom and pop shops,open markets, etc. It represents all trade with the exception of that which flows

through retail chains, supermarkets, or super stores.

Key Characteristics

a) Traditional trade is characterized by a large complex network of independently

owned retailers and distributors carrying primarily local or regional brands.

b) It is the prevailing form of consumer trade in emerging markets.

c) It can be difficult to penetrate for both national and multi-national firms given

its highly fragmented nature, yet it serve as the conduit for reaching the largest

percentage of the consumer population.

For Tropicana division Traditional Trade forms heart of their business, so they

make their best to maximize the penetration at T.T.

Modern Trade

Modern Trade is defined as all that trade that flows through retail chains,

supermarkets, or super stores, etc.

Key Characteristics

a) Above an indexed covered area (different users have different indices but safe

to say 3000 sq. ft. as the minimum) .

b) SKUs above an index number (again, different for different users, but again safe

to peg it at above 2500).

c) Bulk Buying/ Inventory management.

e) Discounting (and frequently passing it out to customers as well).

f) Self Service with electronic billing and credit.

g) Example: Big bazaar, Wal-Mart , Reliance Fresh


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Understanding Reporting Hierarchy and Responsibilities

One Central executive is responsible for execution of Tropicana in Kanpur. He

leads a team of 5 P.S.Rs (Pre-sales representative). Before the morning visit starts,

the C.E talks with all P.S.Rs and lists down the progress of previous day,compares it with actual target and gives them the feedback. Also he asks for the

current days plan and any issues being faced by them. Its the CEs his

responsibility that products are being executed in the market up to the mark, sort

out any grievance that P.S.R is having issues with, fix out pricing of Shop in Shop.

Each P.S.R covers daily 30 shops every P.S.R has a Tropicana route book. It

contains the following fields a) Name of Shop. b) Stock Details of Retailer c)

Order Details Previous Order Details, Current order details d) Replacements if

any This route book serves as input for distributor for order processing. Also data

from all P.S.R is consolidated by C.E and presented to Area Sales manager.

Distributors Role

There are 2 distributors serving the entire Kanpur region. I had worked with 1

distributor during my 2 months time period. A Distributor is appointed by the

company and following points are taken into consideration while appointing a

good distributor.

a) Distributor needs to have good market reputation and links.

b) He should have good infrastructure to carry out day to day operational activities-

distributor must possess a warehouse, vehicle for delivering order and manpower

who can work as P.S.R.

c) Other products that distributor sells also plays an important role and tells about

reputation and worthiness of distributor.


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Distribution System

Tropicana is manufactured in India in Pune. From Pune goods are supplied to

Carry and forward agent .Carry and forward agent furthers supplies it into two

divisions:- 1) C&F Agent directly send the goods to Modern Trade like Big Bazar,Spencer

2) C&F Agent send it to distributor. Distributor further can sell the goods to sub

distributors or directly in the market.

3) The sub distributors further sells sells the product in the smaller markets.


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The product reaches the market with the help of PSRs, PROMOTERs, RSPs.

There are some important functions of PSRs.

Call completion of minimum 30 outlets everyday

Product placement by generating order( secondary)

Ensure freshness [FIFO]

Merchandising

Credit Collection from market

Feedback to the company

Provide information about products to the shopkeeper

DELIVERY SYSTEM

The delivery system of Tropicana works

in the following steps.

STEP 1 PSR takes the order and

previous bills payment from the outlets.

STEP 2 PSR submits the order and

payments to the distributor.

STEP 3 The distributor arranges the stock with schemes and supplies the

order to the outlets.

STEP 4The cycle continues.

The distributor needs to keep the stock of around 10-15 days in his

inventory for smooth functioning.


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AREAS COVERED

During my 2 months time period I covered the following markets :

1CIVIL LINES ,GWALTOLI, CHUNNIGANJ

2 CHAMANGANJ , BEKANGANJ

3 RAINA MARKET , ALLANGANJ ,TILAKNAGAR

4 SWAROOPNAGAR , ARYA NAGAR

5 P ROAD ,JAWAHAR NAGAR , MOTI JHEEL ASHOK NAGAR

6 MALL ROAD , CIVIL LINES , NAVEEN MARKET

7SWAROOPNAGAR

8 LAL BANGLA

9 KRISHNANAGAR

10 TILAKNAGAR , CIVIL LINES

11 LAL BANGLA , DEFENCE COLONY

12 RAMA DEVI , ROOMA

13 SHYAMNAGAR

14 JK COLONY

15 MALL ROAD

16 JAJMAU, DEFENCE COLONY


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Tropicana being a PREMIUM product, special emphasis have been given at

potential outlets. These are the outlets providing with valuable customers and huge

amount of sales.

In areas like SWAROOP NAGAR , ARYA NAGAR , NAVEEN

MARKET, SIS has been used.

Institutions like THE GANGES CLUB, THE LANDMARK HOTEL ,

IIT KANPUR are also there.

Placement at prominent placeZ SQUARE , RAVE@MOTI,RAVE3, Health Clubs, Gyms ( Golds Gym), hospital canteens

Emphasis has also been given in market penetration and thus smaller areas are also

being provided with TROPICANA PRODUCTS. This has also led in the opening

of new outlets in various areas in order to improve the market penetration and

improve the market share of Tropicana as well.

New placements are also being done for Gatorade at new outlets. Thus Gatorade

sales are also being increased.


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TT CLUSTER DISTRIBUTION CORRECTION

The project assigned to me was TT CLUSTER DISTRIBUTION CORRECTION .

I had to visit the markets with the PSRs . There were various important aspects in

which I had to work upon. These have been listed below-

To ensure that the PSRs visits 30 outlets in each beat.

To ensure a facing of 10 SKUs in the outlets including the SIS outlets.

To ensure that each outlet contains a stock of 17 SKUs.

To ensure that the delivery is being done at all the places in time.

To open new outlets to increase penetration and hence improve sales and

market share.

To increase the availability of GATORADE in more outlets and make

customers aware about the product.

To educate the customers about our range of products especially about

Tropicana 100% fruit juice and RORs. To place the 2 new flavours COCONUT MIXED FRUIT & COCONUT

LITCHI in all outlets.

To ensure POPs, banners, danglers, posters are put up everywhere.

To provide customers with the new silver coin schemes.

I studied the distribution system and understood the importance of the PSRs and

what major roles they play.


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INTERNSHIP PROGRAM

During the tenure of 2 months of Internship I worked with 3 PSRs and visited

their routes. Each Route consisting of 6 beats in total 18 beats.

I worked with HEERA ENTERPRISE distributor point.

I visited all the outlets with the PSRs and worked on various aspects to

improve distribution.

I noted down the information of the outlets , routes etc.

I worked on 16:10:70 mantra (16 SKU, 10 facing, 70% market share)

I communicated with the shopkeepers and tried to note down there problems

and report back to my CE.

Addition of new outlets and made sure supply was done in mean time.

Informing the customers about the products and the 2 newly launched

flavours.

Explaining the QPS offer to the customers there by increasing sales volume.

Worked with PSRs for merchandising brand and its product range.

I tried to convince the customers to buy more flavours and bring more

variety in their order.

I added Gatorade to many outlets (Gatorade conversions).

Below is a snapshot of the data that I used to maintain in order to note down

the Market details and how the facings of all the Tropicana facings are

present at all the outlets and new Gatorade outlets opened. It is a daily field


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report of one beat showing improvements after the 3 weeks visited at a

certain beat.


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PERSONAL LEARNINGS

This Summer Internship Project was a great learning experience. Some

of the major learnings and observations I have made are listed below -

Had a view of the real life scenario in the market.

Learnt how the premium segment of PepsiCo works

Learnt how to deal with various types of customers

Learnt how product visibility affects the sale

Understood the role of promotions and schemes in improving

market share

Learnt the importance of the PSRs who are like the eye of the

company

Understood the importance of a satisfied customer for a

company

Learnt how to promote newly launched product in the market.

Learnt how to manage with the people with whom we are

working with.

Learnt how to improve the market penetration of a product.


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RECOMMENDATIONS

Advertisement is an area in which TROPICANA should work in

order to gain market share and attracting new consumers from

competitorsbase.

PSRs should be well informed about their products and thus they

can educate the shopkeepers about the products.

Packaging quality improvement as customer complains a lot for

puffed packs

Banners , POPs, posters should always be available at the

distributor point so that continuous advertisement should be done

Promotions of schemes in 200 ml as done by competitors.

PSRs need to put more effort on product visibility in outlets.

Open more Shop in Shops in potential stores to increase customerbase.

Sampling should be done during the new product launch.


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Bibliography

www.pepsico.com

www.dabur.com

www.tropicana.com

google images

www.acnielsen.com

www.wikipedia.comCompetitive Marketing by Philip Kotler

Sales and Distribution Management

tt cluster distribution correction for pepsico india holdings pvt. ltd

Documents