This document appears to be a dissertation submitted by Anil Kumar Mishra to Mangalmay Institute of Management & Technology in 2009-2011 about PepsiCo's distribution channel strategy for product positioning in Varanasi, India. The dissertation includes sections on the objectives of studying PepsiCo's distribution strategy, a literature review on the company's history and operations in India, and a proposed research methodology. It indicates the dissertation will analyze PepsiCo's marketing initiatives and policies in India with a focus on its partnership management and distribution network.
PepsiCo's Distribution Strategy Key to Product Positioning in Varanasi
1. “STUDY OF DISTRIBUTION CHANNEL STRATEGY
OF PEPSICO FOR THE POSITIONING OF THE
PRODUCT IN VARANASI”
A DISSERTATION REPORT
MANGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY
GREATER NOIDA,
MBA BATCH- 2009-2011
SUBMITTEDTO: NEERAJ KUMAR SINGH
SUBMITTED BY:ANIL KUMAR MISHRA
2. (CUSTOMER EXECUTIVE)
DECLARATION
I hereby declare that the project
entitled ‚STUDY OF DISTRIBUTION
CHANNEL STRATEGY OF THE PEPSICO FOR
THE POSITIONING OF THE PRODUCT‛ was
done by me under the guidance of Miss
JAYA JAIN, faculty MANGALMAY INSTITUTE OF
MANAGEMENT & TECHNOLOGY,GREATER NOIDA,, in
partial fulfillment of the requirement
for the award of the degree of Post
Graduate Program in Master Of
Business Administration.
3. I assure that the work is original and
has not been submitted earlier to this
Institute or to any other institution.
ANIL KUMAR MISHRA
4. ACKNOWLEDGEMENT
There is always a sense of gratitude
one
expresses
to
others
for
the
helpful and needy service they render
during
all
phases
of
life.
I
have
completed this Project with the help
of different personalities. I wish to
express my gratitude towards all of
them.
I am highly indebted to NEERAJ SINGH
(Customer Executive) for providing me an
opportunity to work for the dissertation on
wonderful topic “STUDY OF DISTRIBUTION
CHANNEL
STRATEGY
OF
PEPSICO
FOR
THE
POSITIONING OF THE PRODUCT ”
5. Lastly I would like to thank my parents
and friends for their constant support
during the duration of my Dissertation.
Table of Content
Research Title
1
Declaration
2
Acknowledgement
3
Literature Review
Objective
1-2
3
6. Summary about the company
Marketing overview of PepsiCo in India
4-20
21-31
Sales and Distribution network of PepsiCo
31-34
Sales and Marketing Hierarchy of PepsiCo
35-40
Five forces effecting the environment
41-43
Research Methodology
44-63
Limitation
SWOT Analysis
64
65-67
Observations
68
Findings
69
Recommendations
70-71
Conclusion
72
Bibliography
73
Questionnaire
74-75
7. LITERATURE REVIEW
PepsiCo is one of the oldest, largest
and
most
snack
successful
food
companies
beverage
in
the
and
world.
PepsiCo was founded by Caleb Bradham
in 1902 in USA. Today PepsiCo and its
affiliates
operate
in
more
than
140
countries in the world and generate
revenues in excess of $ 40 Billion. In
its pursuit of never ending growth and
expansion, PepsiCo entered India in 1989
in
a
joint
Government.
very
soon
venture
However,
started
with
Punjab
PepsiCo
its
India
beverage
operations in collaboration with the R
K Jaipuria group.
Soon
after
segment
entering
PepsiCo
the
beverage
Established
its
dominance in the market owing to its
8. expertise
in
operations
and
sales,
local
marketing,
collaboration.
PepsiCo maintained its market dominance
for many more years to come. However,
this advantage slipped and PepsiCo had
to concede the market leadership to
Coca Cola India. Several actors were
responsible for this development. But,
the most important are;
Distribution
channel
important
role
in
product
because
is
having
positioning
we
of
know
an
the
that
distribution channel is tool by which we
can
make
reach
our
product
of
slums
to
the
final consumers
Discontinuation
distribution
network
by
in
PepsiCo.
the
This
move by PepsiCo adversely affected its
position of a market leader because
while PepsiCo discontinued the use of
9. Slums in its distribution network, Coke
continued it and within one year, it was
able
to
snatch
considerable
market
share from PepsiCo.
Acquisition
favored
of
well-established
brands
Limca by
Coca
like
Thumps
and
Up
and
Cola India. These
two
brands still constitute a bulk of sales
for Coca Cola India.
To explore the reasons behind these
developments this study will analyze
the marketing initiatives and policies of
PepsiCo India in detail with particular
focus
on
management.
its
partner
relationship
10. The above-mentioned objectives can be
achieved
planned
by
carrying
research
a
proper
involving
and
different
types and methods. The data collected
for laid the foundations for the study
and gave a platform for the analysis
and
findings
which
lead
to
the
fulfillment of the objectives.
The
data
collected
for
research
is
primary and secondary. Primary data is
collected
and
by
observation,
questionnaires.
interviews
The
data
collection and analysis paves way for
the recommendation ad conclusion of
the study that reveals some important
findings
regarding
the
strategy
and
corporate structure and strategy of
PepsiCo India.
11. OBJECTIVE OF PROJECT
1.
To
know
distribution
channel
Strategy of PepsiCo.
1.
To
know
the
Distribution
importance
channel
strategy
of
in
Positioning of the product.
Sub Objective:
1.
To
know
towards
strategy.
the
the
PepsiCo
distribution
planning
channel
13. Type
: Public (NYSE: PEP)
Founded
: Chicago, Illinois, U.S. (1965)
Headquarters
: Purchase, New York, U.S.
Area served
: Worldwide
Key people
: Indra Krishnamurthy Nooyi (Chairwoman), (President) & (CEO)
Industry
: Food Non-alcoholic beverage
Products
:Pepsi
Diet Pepsi
Mountain Dew
Sierra Mist
StarbucksFrappuccino
LiptIcedTea
7up
Izze
Tropicana Products
Copella
Naked Juice
Gatorade
PropelFitnessWater
Quaker Oats
Lay's
Doritos
Cheetos
Fritos
RoldGold
Ruffles
Tostitos
Slice
14. Nimbooz
Revenue
:▲
USD 43.251 Billion (2010)
Operating income
:▲
USD 6.935 Billion (2010)
Net income
:▲
USD 5.142 Billion (2010)
Total assets
:▲
USD 35.994 Billion (2010)
Total equity
:▲
USD 12.106 Billion (2010)
Employees
: 185,000 (2010)
Divisions
: PepsiCo Americas (PepsiCo Americas Food, PepsiCo Americas
Beverages), PepsiCo International
Website
: PepsiCo.com
15. History of the company
It
was
first
introduced
in
North
Carolina in 1898 by Caleb Braham who
made a pharmacy which sold the drink
which was known back then as "Brad's
Drink", and was later named Pepsi Cola
possibly
due
the
digestive
enzyme
pepsin and kola nuts used in the recipe.
Braham
sought
to
create
a
fountain
drink that was delicious and would aid
in digestion and boost energy.
In 1903, Braham moved the bottling of
Pepsi-Cola from his drugstore into a
rented warehouse. That year, Bradham
sold 7,968 gallons of syrup. The next
year,
Pepsi
was
sold
in
six-ounce
bottles, and sales increased to 19,848
16. gallons. In 1926, Pepsi received its first
logo redesign since the original design
of 1905. In 1929, the logo was changed
again. In 1929, automobile race pioneer
Barney Oldfield endorsed Pepsi-Cola in
newspaper
ads
drink...refreshing,
as
"A
invigorating,
bully
a
fine
bracer before a race".
In
1931,
the
Pepsi-Cola
Company
went
bankrupt during the Great Depressionin large part due to financial losses
incurred
by
speculating
on
wildly
fluctuating sugar prices as a result of
World War I. Assets were sold and Roy
C.
Megargel
trademark.
company
bought
Eight
went
years
bankrupt
the
Pepsi
later,
again.
the
Pepsi's
assets were then purchased by Charles
Guth; the President of Loft Inc. Loft
was a candy manufacturer with retail
stores that contained soda fountains.
He sought to replace Coca-Cola at his
stores' fountains after Coke refused
17. to give him a discount on syrup. Guth
then had Loft's chemists reformulate
the Pepsi-Cola syrup formula.
During
the
gained
Great
popularity
introduction
bottle.
Depression,
in
following
1936
Initially
Pepsi
of
priced
a
at
the
12-ounce
10
cents,
sales were slow, but when the price
was
slashed
increased
advertising
to
five
cents,
With
substantially.
campaign
sales
radio
a
featuring
the
jingle "Pepsi cola hits the spot Twelve
full ounces, that's a lot / Twice as
much for a nickel, too Pepsi-Cola is the
drink for you," arranged in such a way
that
the
jingle
never
ends.
Pepsi
encouraged price-watching consumers
to switch, obliquely referring to the
Coca-Cola standard of six ounces per
bottle for the price of five cents (a
nickel), instead of the 12 ounces Pepsi
sold at the same price. Coming at a time
of
economic
crisis,
the
campaign
18. succeeded in boosting Pepsi's status.
In 1936 alone 500,000,000 bottles of
Pepsi were consumed. From 1936 to 1938,
Pepsi-Cola's profits doubled.
1940s
advertisement
specifically
targeting African Americans.
Pepsi's success under Guth came while
the Loft Candy business was faltering.
Since
he
had
initially
used
Loft's
finances and facilities to establish the
19. new Pepsi success, the near-bankrupt
Loft
Company
sued
Guth
for
possession of the Pepsi-Cola company.
A long legal battle, Guth v. Loft, then
ensued,
with
the
case
reaching
the
Delaware Supreme Court and ultimately
ending in a loss for Guth.
20. Pepsico in India
PepsiCo gained entry to India in 1988 by
creating a joint venture with the Punjab
government-owned
Industrial
Punjab
Corporation
(PAIC)
Agro
and
Voltas India Limited. This joint venture
marketed
and
sold
Lehar
Pepsi
until
1991, when the use of foreign brands
was allowed; PepsiCo bought out its
partners and ended the joint venture in
1994. Others claim that firstly Pepsi was
banned from import in India, in 1970, for
having refused to release the list of
21. its ingredients and in 1993, the ban was
lifted, with Pepsi arriving on the market
shortly
afterwards.
controversies
"India's
companies."
have
a
reminder
sometimes
relationship
PepsiCo
are
with
and
The
"been
multinational
some
argue
Coca-Cola
major
of
acrimonious
huge
Indeed,
These
that
Company
targets
in
part
because they are well-known foreign
companies
that
draw
plenty
of
attention."
In 2003, the Centre for Science and
Environment (CSE), a non-governmental
organization in New Delhi, said aerated
waters
produced
manufacturers
multinational
by
in
soft
India,
giants
PepsiCo
drinks
including
and
The
Coca-Cola Company, contained toxins,
including lindane,
chlorpyrifos
—
DDT,
malathion and
pesticides
that
can
contribute to cancer, a breakdown of
the
immune
system
and
cause
birth
22. defects.
Tested
products
included
Coke, Pepsi, 7 Up, Mirinda, Fanta, Thums
Up, Limca, and Sprite. CSE found that the
Indian-produced
products
had
pesticide
Pepsi's
36
times
residues
European
Union
soft
the
drink
level
permitted
of
under
regulations;
Coca
Cola's 30 times. CSE said it had tested
the same products in the US and found
no such residues. However, this was the
European standard for water, not for
other drinks. No law bans the presence
of pesticides in drinks in India.
The
Coca-Cola
Company
and
PepsiCo
angrily denied allegations that their
products
manufactured
in
India
contained toxin levels far above the
norms
permitted
world.
But
committee,
findings
an
in
and
in
Indian
2004,
a
the
developed
parliamentary
backed
up
CSE's
government-appointed
committee, is now trying to develop the
world's first pesticides standards for
23. soft drinks. Coke and PepsiCo opposed
the move, arguing that lab tests aren't
reliable
enough
to
detect
minute
traces of pesticides in complex drinks.
On December 7, 2004, India's Supreme
Court
ruled
competitor
that
The
both
PepsiCo
Coca-Cola
and
Company
must label all cans and bottles of the
respective soft drinks with a consumer
warning
after
unacceptable
tests
levels
showed
of
residual
pesticides.
Both
companies
that
their
continue
products
to
maintain
meet
all
international safety standards without
yet
implementing
ruling.
As
of
the
2005,
Supreme
The
Court
Coca-Cola
Company and PepsiCo together hold 95%
market share of soft-drink sales in
India.
by
the
PepsiCo has also been accused
Puthussery
panchayat
in
the
Palakkad district in Kerala, India, of
practicing "water piracy" due to its role
24. in
exploitation
resources
drinking
the
ground
resulting
water
residents,
of
in
for
who
scarcity
the
of
panchayat's
have
government
water
been
to
pressuring
close
down
the
PepsiCo unit in the village.
In 2006, the CSE again found that soda
drinks, including both Pepsi and CocaCola, had high levels of pesticides in
their drinks. Both PepsiCo and The CocaCola Company maintain that their drinks
are
safe
for
consumption
published
newspaper
that
pesticide
say
and
have
advertisements
levels
in
their
products are less than those in other
foods
such
as
tea,
fruit
and
dairy
products. In the Indian state of Kerala,
sale
and
along
with
banned
2006,
production
other
by
but
the
this
of
soft
state
was
Pepsi-Cola,
drinks,
was
government
reversed
by
in
the
Kerala High Court merely a month later.
Five
other
Indian
states
have
26. Marketing Strategy of Pepsi
In
1975,
Pepsi
Challenge
introduced
marketing
the
campaign
Pepsi
where
PepsiCo set up a blind tasting between
Pepsi-Cola and rival Coca-Cola. During
these blind taste tests the majority of
participants picked Pepsi as the better
tasting of the two soft drinks. PepsiCo
took great advantage of the campaign
with television commercials reporting
the test results to the public.
In 1976 Pepsi, RKO Bottlers in Toledo,
Ohio
hired
the
first
female
Pepsi
salesperson, Denise Muck, to coincide
27. with
the
United
States
bicentennial
celebration.
Pepsi logo (1973-87). In 1987, the font
was
modified
slightly
to
a
more
rounded version which was used until
1991.
In
1996,
PepsiCo
launched
successful
Pepsi
strategy.
2002,
By
the
Stuff
the
highly
marketing
strategy
was
cited by Promo Magazine as one of 16
"Ageless
Wonders"
that
"helped
redefine promotion marketing."
In 2007, PepsiCo redesigned their cans
for the fourteenth time, and for the
first
time,
different
included
more
backgrounds
introducing
a
new
on
than
each
background
thirty
can,
every
three weeks. One of their background
28. designs includes a string of repetitive
numbers
73774.
This
is
a
numerical
expression from a telephone keypad of
the word "Pepsi."
Pepsi’s logo (2003-09. Currently using
with Pepsi Wild Cherry and Pepsi ONE)
In late 2008, Pepsi overhauled their
entire
brand,
simultaneously
introducing a new logo and a minimalist
label
design.
comparable
to
The
redesign
Coca-Cola's
was
earlier
simplification of their can and bottle
designs. Due to the timing of the new
logo release, some have criticised the
logo change, as the new logo looked
strikingly similar to the logo used for
Barack
Obama's
successful
presidential campaign, implicating a bias
29. towards
the
President.
Also
in
4th
quarter of 2008 Pepsi teamed up with
Google/Youtube to produce the first
daily entertainment show on Youtube.
This daily show deals with pop culture,
internet
viral
videos,
and
celebrity
gossip. Poptub is refreshed daily from
Pepsi.
Since 2007, Pepsi, Lay's, and Gatorade
have
had
a
"Bring
Home
the
Cup™,"
contest for Canada's biggest hockey
fans. Hockey fans were asked to submit
content (videos, pictures or essays)
for a chance at winning a party in their
hometown with The Stanley Cup and Mark
Messier.
In
2009,
"Bring
Home
the
Cup™,"
changed to "Team Up and Bring Home the
Cup™."
The
new
installment
of
the
campaign asks for team involvement and
an
advocate
to
submit
content
on
behalf of their team for the chance to
30. have the Stanley Cup delivered to the
team's hometown by Mark Messier.
Pepsi has official sponsorship deals
with
three of the
four major North
American professional sports leagues:
the National Football League, National
Hockey
League
and
Major
League
Baseball. Pepsi also sponsors Major
League Soccer.
Pepsi also has sponsership deals in
international
cricket
teams.
The
Pakistan cricket team are just one of
the teams that the brand sponsers. The
team wears the Pepsi logo on the front
of
their
clothing.
test
and
ODI
test
match
31. Slogans of Pepsi
1.
1939-1950: "Twice as Much for a
Nickel"
2.
1950: "More Bounce to the Ounce"
3.
1950-1957: "Any Weather is Pepsi
Weather"
4.
1957-1958: "Say Pepsi, Please"
5.
1958-1961: "Be Sociable, Have a Pepsi"
6.
1961-1963: "Now It's Pepsi for Those
Who Think Young"
32. 7.
1963-1967: "Come Alive, You're in the
Pepsi Generation".
8.
1967-1969: "(Taste that beats the
others cold) Pepsi Pours It On".
9.
1969-1975: "You've Got a Lot to Live,
and Pepsi's Got a Lot to Give"
10. 1977-1980: "Join the Pepsi People
(Feeling Free)"
11.
1980-1981: "Catch That Pepsi Spirit"
David Lucas composer
12. 1981-1983: "Pepsi's got your taste
for life"
13. 1983-1984: "Pepsi Now! Take the
Challenge!"
14. 1984-1991: "Pepsi. The Choice of a New
Generation" (commercial with
Michael Jackson, featuring Pepsi
version of Billie Jean)
15. 1986-1987: "We've Got The Taste"
(commercial with Tina Turner)
16. 1987-1990: "Pepsi's Cool"
(commercial with Michael Jackson,
featuring Pepsi version of Bad)
33. 17. 1990-1991: "You got the right one
Baby UH HUH" ( sung by Ray Charles
for Diet Pepsi )
18. 1991-1992: "Gotta Have It"/"Chill Out"
19. 1992-1993: "Be Young, Have Fun, Drink
Pepsi"
20. 1993-1994: "Right Now‛ Van song for
the Crystal Pepsi advertisement.
21. 1994-1995: "Double Dutch Bus" Pepsi
song sung by Brad Bentz.
22. 1995: "Nothing Else is a Pepsi"
23. 1995-1996: "Drink Pepsi. Get Stuff."
Pepsi Stuff campaign
24. 1996-1997: "Pepsi: There’s nothing
official about it" (During the Wills
World Cup (cricket) held in
India/Pakistan/Sri Lanka)
25. 1997-1998: "Generation Next" - with
the Spice Girls.
26. 1998-1999: "It's the cola" (100th
anniversary commercial)
27. 1999-2000: "For Those Who Think
Young"/"The Joy of Pepsi-Cola"
34. (commercial with Britney
Spears/commercial with Mary J.
Blige)
28. 2000-2003: "
" (Hindi - meaning
"Freedom of the Heart")(India)
29. 2003: "It's the Cola"/"Dare for
More" (Pepsi Commercial)
30. 2003-2005: "
" (Hindi meaning
"This thirst is too much")(India)
31. 2005-2006: "An ice cold Pepsi. It's
better than sex!" (Larry Sypolt)
32. 2006-2007: "Why You Doggin'
Me"/"Taste the one that's forever
young" Commercial featuring Mary J.
Blige
33. 2007-2008: "More Happy"/"Taste the
once that's forever young" (Michael
Alexander)
34. 2008: "Yeh hai Youngistaan Meri
Jaan!" (Hindi)(Urdu - meaning "This is
the Young era my dear" (India and
Pakistan)
35. 35. 2008: "Pepsi Stuff" Super Bowl
Commercial (Justin Timberlake)
36. 2008: "Рepsi is #1" Тv commercial
(Luke Rosin)
37. 2008: "Pepsify karo gai!" Commercial
(Urdu (Hindi - meaning "Wanna
Pepsify!") (Pakistan) (Featuring.
Adnan Sami and Annie)
38. 2008-2009: "Something for
Everyone."
39. 2009-present: "Refresh Everything"
and (during many commercials)
"Every Generation Refreshes The
World"
Pepsi Input – Processing – Output Model
37. 2.
Ensure quick storage and inventory
processes to maintain freshness and
quality.
Sales
1.
Determine demand by past sales and
future marketing.
2.
Adjust quantities produced in real
time to meet appropriate demand.
Output
Supply
1.
Determine inventory of ingredients
to order new supplies.
2.
Maintain
purified
water
supply
so
ensure continuance of production.
Manufacturing
1.
Ensure proper packaging to ensure
quality and freshness in products.
38. 2.
Maintain quick local distribution to
ensure
freshness
and
quality
products.
Sales
1.
Keep positive distribution levels to
all sales outlets to maintain positive
sales.
2.
Meet any new demand or competition
with products and consumer needs.
39. EVERY DELAR SURVEY {EDS}
OF SRI LUXMI SUB-DISTRIBUTER OF PEPSICO
SUB LOCALITY
LOCALITY
PCI VISI CCX VISI VEHICLE PCI VEHICLE CCX
TOTAL SALE
Near D.A.V
Ausanganj
Yes
Yes
6
5
90
Near D.A.V
Ausanganj
Yes
No
6
No
40
Near D.A.V
Ausanganj
Yes
No
6
No
35
Digia Chauraha
Ausanganj
P
No
6
No
30
Digia Chauraha
Ausanganj
Yes
Yes
6
5
10
Digia Chauraha
Jaitpura
P
Yes
6
5
10
Digia Chauraha
Jaitpura
No
Yes
2
2
10
Digia Chauraha
Jaitpura
Yes
Yes
3
3
40
Digia Chauraha
Jaitpura
No
Yes
3
3
10
Thana Jaitpura
Jaitpura
Yes
Yes
3
3
10
Thana Jaitpura
Jaitpura
P
Yes
3
3
10
Thana Jaitpura
Jaitpura
No
Yes
3
3
20
Thana Jaitpura
Jaitpura
P
Yes
3
3
10
Thana Jaitpura
Jaitpura
P
No
3
3
5
Nagkua, Jaitpura
Jaitpura
Yes
No
3
3
5
Nagkua, Jaitpura
Jaitpura
Yes
No
None
3
20
Kajipura
Badi Bazar
Yes
No
4
No
40
Kajipura
Badi Bazar
Yes
No
4
No
20
Kajipura
Badi Bazar
Yes
No
4
No
40
Bismila Katra
Badi Bazar
Yes
No
3
No
50
Badi Bajar
Badi Bazar
Yes
No
3
No
120
Chavi Mahal
Chavi Mahal
Yes
Yes
4
No
30
Chavi Mahal
Chavi Mahal
Yes
Yes
4
No
40
Cotton Mil Gate
Cotton Mil Gate
Yes
No
4
No
60
40. Cotton Mil Gate
Cotton Mil Gate
P
No
4
No
40
Near D.A.V
Ausanganj
Yes
No
4
No
8
Near D.A.V
Ausanganj
Yes
No
3
5
48
Near D.A.V
Ausanganj
No
Yes
3
5
20
Near D.A.V
Ausanganj
No
P
3
2
5
Near D.A.V
Ausanganj
Yes
Yes
3
3
60
Digia Chauraha
Ausanganj
Yes
P
4
3
10
Behind Masjid
Rajapura
IB
No
1 4
1 4
30
Behind Masjid
Ausanganj
Yes
No
1 4
No
10
Near D.A.V
Ausanganj
Yes
No
5
5
60
Near D.A.V
Ausanganj
Yes
No
5
No
8
Digia Chauraha
Ausanganj
Yes
Yes
5
5
8
Digia Chauraha
Ausanganj
Yes
Yes
5
5
20
Digia Chauraha
Ausanganj
P
No
5
No
16
Digia Chauraha
Ausanganj
Yes
No
5
No
56
Basti
IswarGangi
P
No
5
No
16
Basti
IswarGangi
P
No
5
No
12
Basti
IswarGangi
P
No
5
No
8
Basti
IswarGangi
Yes
No
5
No
28
Basti
IswarGangi
P
P
5
No
30
Basti
IswarGangi
P
No
5
No
20
Pepsi’s Mission
The
mission
world's
of
premier
Pepsi
is
to
consumer
be
the
Products
41. Company focused on convenient 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.
than
both
industry
years.
Their
Pepsi has grown faster
the
group
S&P
500
and
their
over
the
past
four
2003 alone was a strong year.
overall
volume
grew
by
5%.
Division net revenue grew by 8%. Division
operating profit grew by 10%.
return
to
shareholders
Total
was
12%.
Earnings per share grew by 22%.
They
have six of the fifteen largest-selling
brands
in
around
the
brands
sell
U.S
Supermarkets.
world,
more
sixteen
than
dollars each at retail.
of
one
And,
their
billion
42. Pepsi is also very concerned about the
environment and has a separate set of
goals. Our goal is to have the least
possible impact on the environment and
so far we have been very successful.
For
example,
in
1992
Pepsi-Cola
replaced its can holders with plastic
ring connectors. Using a break-apart
concept, these rings snap when cans
are
removed
greatly
from
reducing
the
connectors,
the
risk
of
entanglement for wildlife. In addition,
photo-degradable additives break down
these connectors into small particles
when
they
are
exposed
to
sunlight,
further reducing the likelihood of any
negative environmental impact. In 1995,
Pepsi was one of only 20 companies
honored
by
the
U.S.
Protection
Agency
Administrator
Carol
Environmental
(EPA).
Browner
EPA
called
the efforts of Pepsi to reduce solid
waste "a notable achievement."
43. A third goal of Pepsi is to achieve a
diverse workforce.
Pepsi knows that
understanding different cultures is a
major advantage. They view diversity as
a key to their future.
They see that
offering a workplace where diversity is
valued helps them build the top-quality
workforce so crucial to their success
by enabling them to attract and retain
great people from a wide spectrum of
backgrounds.
quote,
Their
‚PepsiCo
dedicated
to
CEO
has
instilling
offers
long
the
this
been
broadest
possible base of diversity within our
own company and among the companies
who serve us, and is a strong advocate
of
diversity
within
our
communities.‛
This intense dedication to diversity has
led to many awards that include being
named a top 50 company for diversity by
DiversityInc.
Fortune magazine ranked
Pepsi number nine for best companies
for minorities.
44. Business Views
These are the three different views to
explain
Pepsi
accuracy,
in
terms
timeliness,
of
relevance,
exclusiveness,
and accessibility.
MARKETING VIEW-: The marketing view is
the backbone of business dimension in
45. case study of Pepsi. In order to make a
firm successful in the marketplace this
view must penetrate all the other views
together.
Introducing
new
ways
to
approach the market or launching a new
product needs good understanding of
the
target population, which
through
forecasts
the
is
done
marketing
and
view.
plans
different
the
It
components in the business dimension
that are going to affect the future of
the
company.
Through
the
marketing
view Pepsi tries to reach to its existing
as
well
competent
as
future
market
customers.
strategy
is
A
very
important in today’s competitive market;
especially for a multinational company
like,
Pepsi.
Narrowing
down
its
different products towards different
type of population, for example, Sprite
among
buyers
for
various
products
within the company. Advertising is a very
vital part in the marketing view because
46. it
brings
the
consumers
and
Pepsi
together which determines the demand.
PRODUCT
Pepsi
VIEW-:
The
reflects
products
among
the
every
these
six
product
launch
of
months.
globally
view
As
of
new
seen
operating
beverage companies, Pepsi and Coke, in
order to stay competent in the market
they invent new products to
attract more customers and please the
existing ones.
hard
in
If Pepsi
experimenting
does not
new
try
products
they know someone else could steal
the market with similar ideas. If there is
no
product,
Therefore,
in
there
is
no
business.
order
to
dominant
the
market globally as well as in the U.S.,
Pepsi comes with different flavors or
even
changes
the
looks
of
bottles.
Pepsi has wide variety of beverages like
soft drinks, juices, water, and energy
47. drinks. This company started with just
plain
soda
trying
to
and
add
since
more
then
has
products
been
to
its
existing line. If you look according to
the accessibility view you can also see
those vending machines everywhere for
your
conveniences.
LOGISTIC VIEW-:
very
important
The logistic view is a
part
of
the
globally
operating companies. For Pepsi, to have
bottling
plants
in
all
the
countries
they sell the products is necessary. By
doing
this,
established
there
exists
connection
a
well-
between
the
suppliers, producers, distributors and
consumers.
Pepsi
Company’s
organization is divided into four areas
covering
America.
Asia,
These
Africa,
four
Europe
and
subdivisions
are
further narrowed among the countries
in
these
continents.
The
inter-
organization structure of the company
48. has
different
divisions.
The
manufacturing plant makes and bottles
the product, the distributors deliver to
the suppliers, and the suppliers sell it
to
the
retailers
consumers.
and
These
finally
to
supply–chains
the
in
different countries are controlled by
one main headquarter.
In the Market
49. 1.
2.
3.
Above figure shows the market share
of the beverages players.
First figure shows that thums up has
the largest market share in top five
soft drink players. And limca got the
50. fifth rank. Pepsi is on the 3rd rank with
13.2% market share.
Second figure shows the market share
covered
by
beverage
players.
In
the
market coke is on 1st rank with the 38%
of market share and Pepsi has 21.4%
market share.
Third figure shows the battle between
the
product
of
different
brand
but
same flavor. In this war of soft drink in
between Pepsi and thums up thums up
has won this war by 15.7% of market
share, Pepsi has only 13.2% of market
share in cola market.
51. PEPSICO INDIA WITH RKJ GROUP:
Vision
Being the best in everything we touch
and handle.
52. Mission
Continuously
maintain
chosen
excel
to
leadership
achieve
position
businesses;
and
and
in
the
delight
all
stakeholders by making economic value
additions in all corporate functions.
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.
The
business
of
the
company
was
started in 1991 with a tie-up with Pepsi
Foods
Limited
to
manufacture
and
53. market
Pepsi
brand
of
beverages
in
geographically pre-defined territories
in which brand and technical support
was
provided
by
the
Principals
viz.,
Pepsi Foods Limited. The manufacturing
facilities were restricted at Agra Plant
only.
Varun
Beverages
Ltd.
is
the
flagship
company of the group.The group also
became the
first
Restaurants
franchisee
International
PepsiCo
Restaurants
Limited]
in
franchise
India.
rights
for Yum
[formerly
(India)
It
has
for
Private
exclusive
Northern
&
Eastern India. It has total 46 Pizza Hut
Restaurants & 1 KFC Restaurant under
its company.
The group added another feather to its
cap
when
the
‚International
award
Jaipuria
was
for
prestigious
PepsiCo
Bottler
of
the
Year‛
presented
to
Mr.
R.
K.
at
a
the
year
1998
54. glittering award ceremony at PepsiCo’s
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 Weatherup,
President of Pepsi Cola Company.
Strategic Divisions:
PepsiCo
India
consists
of
different
divisions that include Beverage division,
Snack food division and the Restaurant
division
(Yum
Restaurants
India
Pvt.
Ltd.). These divisions work as separate
SBU’s
and
management.
have
their
separate
56. MARKETING OVERVIEW OF PEPSICO INDIA
Marketing Environment:
Marketing environment
environment
operates.
in
This
is
the
which
consists
a
overall
Company
of
the
Task
Environment and the Broad Environment.
Task Environment
Task Environment includes the immediate
players
involved
distributing
offering.
The
company,
dealers
producing,
promoting
main
players
suppliers,
and
Suppliers
service
and
in
the
suppliers
research
the
distributors,
target
include
are
the
the
such
customers.
material
as
agencies,
agencies,
banking
and
companies,
transportation
and
marketing
advertising
insurance
companies,
and telecommunications companies. The
57. dealers
and
agents,
distributors
brokers,
representatives
facilitate
manufacturer
and
finding
include
others
and
selling
who
to
customers.
The suppliers for PepsiCo India include
the
bottle
suppliers
for
the
soft
drinks. These include the Pet bottles
and the Glass bottles. One of the most
vital
products
operation
does
is
not
refrigerators,
required
in
Refrigerator.
PepsiCo
manufacture
instead
the
they
the
are
supplied by different vendors who get
time
bound
contracts
from
the
company.
The distributors and dealers are part
of the sales and distribution network.
This will be explained later under the
section of ‘Place’, in the 4 P’s segment.
60. proposition.
This
is
known
as
Segmentation, Targeting and Positioning
and
is
the
essence
of
strategic
marketing.
Once the business unit has chosen the
value, the second phase is providing the
value.
Marketers
need
to
determine
specific product features, prices and
distribution.
The
task
in
the
third
phase
is
communicating the value by utilizing the
sales
force,
advertising,
tools
to
and
sales
other
announce
and
promotion,
communication
promote
the
product. Each of these value phases
has different cost implications.
61. Choose the Value (Strategic Marketing)
Customer
Segmentation
Market
Selection /
Focus
Value
Positioning
Provide the Value (Tactical Marketing)
Distributio
n/
Servicing
Sourcing /
Pricing
Making
Service
Developm
ent
Product
Developm
ent
Communicate the Value (Tactical Marketing)
Sales Force
Value Creation and Delivery Sequence
Sales
Promotion
Advertising
62. Generic Value Chain:
Firm Infrastructure
Human Resource Management
Support
Technology Development
Activities
Inbound
Logistics
Margin
Procurement
Outbound
Logistics
Operations
Marketing
and Sales
Service
Primary Activities
The generic value chain is a tool to
identify ways to create value for the
customer.
This
model
proposes
that
every firm is a synthesis of activities
performed to design, produce market,
deliver
order
and
to
be
support
more
its
product.
precise
only
In
the
primary activities in the value chain of
PepsiCo India are analyzed.
Primary Activities:
63. Inbound
Logistics
–
This
involves
bringing and procuring raw materials
for the business. For the carbonated
drinks industry only two raw materials
are required, they are water and the
concentrated
produce
salt
the
final
that
is
product.
used
For
to
this
purpose water is extracted from the
ground and the concentrated salt is
provided by PepsiCo India to all the
plants in the country.
Operations
includes
all
Currently
planting
–
Operations
the
there
in
India
bottling
primarily
plants.
are
32
bottling
that
operate
for
PepsiCo. Of the 32 plants, 15 are owned
by PepsiCo and the rest 17 are (FOBO),
owned by R K Jaipuria Group.
Outbound Logistics – The Outbound
logistics of Pepsi can be divided into
64. three stages. First the finished product
from the bottling plants is sent to the
depot or the territorial office, from
where it is sent to the C & F centers and
the
Distributor
Points
according
to
their demand. From the C & F centers
and Distributor Points the product is
sent out for sale in the market to the
retailers.
Marketing and Sales – The sales and
distribution network of Pepsi is very
strong
and
comprises
of
different
layers and a dedicated sales force.
This is one of the important factors
for the success of Pepsi. To keep the
company abreast with competition and
to
provide
support
partners and
PepsiCo
puts
marketing
to
to
its
increase
lot
of
activities.
channel
the
effort
This
sales,
in
its
includes
maintaining excellent relations with its
channel
partners,
making
huge
65. investments in Advertising, signing of
Megastars as its brand ambassadors,
sponsoring various events, launching
promotional
for
any
launch
or
re
launch of a product.
Service – In this industry after sales
service is generally not required. The
only
exception
being
leak
or
burst
bottles. In that case, the shopkeeper
gets replacement for plastic bottles
from the salesmen instantly, while the
replacement
for
glass
bottles
is
provided between 25th and 30th of every
month. They are required to collect all
the damaged glass bottles and give to
the respective salesperson who gives
them the replacement within the next
few days after getting it approved from
the CE or ADC.
Marketing Mix / 4 P’s:
66. Marketing Mix has been defined as the
set of marketing tools that a firm uses
to
pursue
its
marketing
objectives.
These tools are classified into four
broad groups, namely, Product, Price,
Place and Promotion.
Marketing mix decisions should be made
to influence trade channels as well as
final consumers. A firm can alter any
of the four P’s accordingly, including
changes in the product and distribution
channel as well.
The four P’s represent the seller’s view
of the marketing tools available for
influencing
buyers.
Whereas,
from
a
buyers point of view, each marketing
tool is designed to deliver a customer
specific benefits according to his or
her requirements.
68. Marketing Variables: The Four P Components of the Marketing Mix
Place
Product
Product
Prod. Variety
Quality
Prod. Variety
Design
Features
Brand Name
Quality
Packaging
Sizes
Design
Services
Warranties
Features
Returns
Brand Name
Packaging
Sizes
Services
Warranties
Channels
Coverage
Assortments
Price
Promotion
Locations
Inventory
List Price
Sales Promotion
Discounts
Advertising
Allowances
Sales Force
Payment period
Pubic Relations
Credit Payments
Direct Marketing
Returns
Figure 4p’s:
Transport
69. Product:
variety
Pepsi
of
offers
products
carbonated
to
Non
different
ranging
from
Carbonated
Soft
Drinks. These include –
Pepsi Cola,Mirinda ( Lemon and Orange
),7
Up,Dew,Slice
,Tropicana,Aquafina
(Mineral Water)
These Products come in different size –
200 ml, 300 ml, 600 ml, 1200 ml, 2 lt.
there are nearly 42 SKU’s which are
monitored
and
regulated
on
daily
basis.
Product Quality:
This
is
one
of
the
most
important
aspects that any Co. needs to address.
Specially in the case of Pepsi this is
even
more
important
controversies
and
because
claims
of
the
regarding
the CSE report on Pesticides in Pepsi.
70. Therefore
pepsi
has
to
maintain
stringent quality norms and standards
and
norms.
Pepsi
following
one
worldwide
and
official
does
that
quality
by
standard
according
to
the
of
the
Co.
website
pepsi,
maintains that :
‚At every level of Pepsi-Cola Company,
we take great care to ensure that the
highest standards are met in everything
we
do.
In
our
products,
packaging,
marketing and advertising, we strive for
excellence
because
our
consumers
expect and deserve nothing less. We
promise
to
work
improvement
in
toward
all
continuous
areas
of
our
organization‛.
‚At
and
every
step
bottling
of
our
process,
manufacturing
strict
quality
controls are followed to ensure that
Pepsi-Cola products meet the same high
standards of quality that consumers
have come to expect and value from us.
71. We also follow strict quality control
procedures
and
during
filling
of
the
our
manufacturing
packages.
Each
bottle and can undergoes a thorough
inspection
and
testing
process.
Containers are then rinsed and quickly
filled through a high-speed, state-ofthe-art process that helps prevent any
foreign
material
product.
from
Additional
entering
quality
the
control
measures help to ensure the integrity
of Pepsi-Cola products throughout the
distribution process, from warehouse
to store shelf‛.
Brand Name:
This is the most important thing any Co.
in this Business needs to do if it wants
to remain and succeed in the Business.
Pepsi has successfully done that for
so many years. Pepsi has targeted the
youth
and
has
invested
heavily
in
advertising and building a brand image
(by
launching
several
campaigns
and
72. roping in mega stars such as Shahrukh,
Sachin,
ganguly,
Dravid
etc.)
that
attracts to the youth and this is one of
the main reason for the success of
Pepsi.
Packaging and Size : The products
are available in packaging and sizes.
This
is
done
to
facilitate
the
use
according to the requirements of the
Customer.
affects
Different
the
usage
packaging
pattern
also
of
the
product in various markets. e. g. sale
of 2 lt. bottles is high in areas in which
middle
and
high
income
group
customers stay. But the sale of 200
and 300 ml bottles is high in areas
where
people
in
the
lower
income
group bracket stay. The sale of 600 ml
bottles is high in areas where students
etc. stay. Different packaging is also
provided
Tetra
for
Packs,
different
Pet
products
Bottles
Bottles (in 200 and 300 ml).
and
like
Glass
73. Services,
Warranties,
Returns
:
There are no warranties and services
(post
sales)
products
but
provided
there
is
for
these
provision
of
returns in case there is any problem
with
the
product,
e.g.
leak
or
burst
bottle, half filled bottle etc. The pet
or
plastic
bottles
are
returned
the
same day and a replacement is provided
for the same but in the case of glass
bottles the retailer has to collect all
the burst bottles and return it to the
salesman around 25th of every month to
get a replacement.
Price:
List Price: The Price of each product is
fixed
and
there
is
no
discrepancy.
Salesmen are not authorized to make
any
change,
discounts
Company.
alteration
unless
or
authorized
by
give
the
74. Discounts: Discounts are provided to
Wholesalers and Slums but there is no
discount for retailers. The discounts
are
negotiated
directly
with
the
Company and the C&F or the Distributor
point
is
not
involved
in
the
price
negotiation.
Allowances: Allowances are given to
salesmen
on
achieving
their
daily
targets. This target is given to every
Salesman everyday before he goes on
his
designated
route.
The
Depot
In
charge (Sr. C E / C E) gives the target
to every salesman in consultation with
the TDM.
Payment
period
credit
is
procedure
and
Credit
provided.
is
not
terms:
The
flexible
No
payment
as
the
retailers are required to make on the
spot payments. At times, they defer the
payment and in that case, the Salesman
either shows a shortage or pays the
rest
of
the
amount
by
himself.
The
75. wholesalers
are
also
required
to
make in advance but at times they also
defer the payment and make the payment
at a later date.
Place:
Channels:
‘Channels
are
independent
organizations involved in the process
of
making
available
There
a
for
are
product
use
or
different
or
service
consumption’.
intermediaries
in
channels that facilitate the availability
of goods to the consumer.
Coverage:
market
Two
things
coverage.
These
come
are
under
Market
Reach and Market Penetration.
Market
Reach
accessibility
can
and
be
termed
Market
can be termed as Frequency.
Promotion:
as
Penetration
76. Sales
Promotion:
frequently
is
form
used
This
the
of
most
promotion
which is used to increase the sale of
the
selected
product.
These
promotions are used from time to time
depending
upon
the
sale
of
the
products. If the sale of any particular
product declines or shows a declining
trend then a suitable Sales Promotion
Campaign is launched to increase the
sale of that product.
Advertising:
Advertising
is
done
by
PepsiCo. COBO (Company owned Bottling
Operations)
owned
and
Bottling
FOBO
(Franchisee
Operations)
have
no
say in the advertising campaigns and
their planning. The advertising account
of Pepsi is handled by JWT (J Walter
Thomson)
in
association
with
the
Corporate office of PepsiCo India.
Sales Force: There is a dedicated sales
force
point.
at
every
Every
C&F
Salesman
and
is
Distributor
assigned
a
77. specific
route
that
he
has
to
cover
every day. The Salesman has to take
care
of
all
designated
the
route
Shops
the
address
and
on
and
inform (to the Sr. CE / CE) about any
issue any retailer has on the route. The
Salesmen are also assigned the task
of providing all the information to the
retailers regarding the daily schemes
and the details of all the promotion
schemes launched from time to time.
These
include
about
informing
the
the
promotional
retailer
scheme,
registration for the scheme, terms and
conditions
of
the
scheme
etc.
The
Salesman is also assigned the task of
registering
maximum possible outlets
on his assigned route.
Public
important
Relations:
aspects
success
of
believes
in
PepsiCo
This
related
in
maintaining
is
to
India.
good
one
the
Pepsi
and
healthy relations with all its Channel
78. partners and every other person in the
value chain. This has helped Pepsi in
maintaining
an
extremely
competitive
position in the market in spite of the
continuous onslaught from Coca Cola.
SALES AND DISTRIBUTION NETWORK OF
PEPSICO INDIA.
80. sales and profitability of the Company
can be increased.
Company
(PepsiCo):
PepsiCo
India
provides the salt to all the bottling
plants in the Country that carry out the
bottling operations.
COBO:
These
are
Company
owned
bottling operations operating directly
under the Company. Out of 32 bottling
plants, PepsiCo owns 15.
FOBO:
These
are
Franchise
owned
bottling operations. R K Jaipuria group
does
all
the
franchisee-bottling
operations for PepsiCo India; currently
R K J Group has 17 bottling plants for
Pepsi.
Warehouses: These are Company or
franchisee owned warehouses spread
over various locations that cover the
respective territories and come under
the purview of their respective Area or
Territory Offices. Stocks are sent from
81. the
bottling
plants
to
these
warehouses, from where they are sent
to the C & F centers and Distributor
Points.
C & F Centers: These are the biggest
centers in the distribution network and
receive
proper
assistance
from
the
Company (either COBO or FOBO). The C &
F center is owned by a private player
and not by the Company. The vehicles
(Delivery
Vans)
are
owned
by
the
Company, and the Salesmen at the C & F
points are on the Company Payroll.
Distributors:
These
are
small,
compared to C & F centers. Everything
at
the
Distributor
point
owned
and
managed by the distributor, even the
salespersons are on the Distributors
payroll.
Wholesalers: These are smaller than
C & F centers and Distributor points and
get
the
stock
directly
from
the
82. Company or Franchisee. They get their
stock directly from the Company and
thus
get
special
rates
and
extra
discounts from the Company.
Slums:
than
They
the
are
generally
Wholesalers
smaller
are.
However,
they get special discounts from the C &
F centers and Distributor points.
All
the
different
distribution
players
channel
centers,
namely
in
C
Distributor
the
&
F
points,
Wholesalers and Slums have different
designated
supposed
markets
to
and
operate
in
are
the
not
market
designated to any other player.
Retailer:
Retailers
important
chain
in
are
the
the
most
distribution
channel of Pepsi as they are the only
point of contact with the customers.
Retailers get their stock from all the
other
channel
members
distribution channel.
in
the
85. In
charge
of
specific
zones (e.g.
north, south, east, west) and report to
the corporate office.
UM - Unit Manager:
In charge of day to day operations
and supervision of all the functions
within
the
organizations
operations,
logistics,
distribution,
including
sales
marketing.
and
The
Unit
Manager reports to the MUM.
TDM
-
Territory
Development
Manager:
TDM is the in charge of the sales
and
distribution
particular
network
territory
within
of
a
a
zone.
Responsible for the daily, monthly and
annual
sales
decides
products
the
within
the
daily
schemes
and
territory
incentives
for
for
86. salespersons. He is also responsible
for
cost
generation
effectiveness,
and
profit
profit
maximization
within the territory.
MDM
-
Marketing
Development
Manager:
MDM
is
responsible
marketing
for
activities
effectiveness
all
and
within
a
the
their
territory.
Decides the format and time frame of
the
marketing
and
promotional
activities and the incentives given to the
retailers.
ADC
-
Area
Development
Coordinator:
Reports to the TDM, and is in charge
of a C & F center and the distributor
point
in
the
area.
He
is
directly
responsible for any issues in the area
87. and is supposed to ensure the smooth
functioning
of
the
entire
sales
and
distribution network in the area. ADC is
responsible for timely disposal of any
issue faced by the retailers. He decides
and approves the boards, displays and
hoardings in the area.
MDC
-
Marketing
Development
Coordinator:
Reports to MDM, and is in charge of
carrying out all the marketing activities
in the area. He is responsible for the
execution
and
success
of
marketing
and promotional activities. Coordinates
with the outside agencies for displays,
boards,
checks
conducted
in
the
market. He is also responsible to keep
a
check
on
the
expenditure
of
marketing activities in the market.
the
88. CE - Customer Executive:
Reports to the ADC and is in charge
of the salespersons. He is required to
visit the market and accompany every
salesperson
as
frequently
as
possible. He is the first person to get
information
and
is
about
the
the
first
market
/
contact
if
area
the
salespersons or retailers face issue.
Responsible
for
assigning
and
achieving daily sales target given to
the salespersons.
ME - Marketing Executive:
Reports to the MDC and is responsible
for
the
marketing
daily
functioning
activities
in
the
of
the
including
awareness of promotions in the market
and the response in the market
89. Salesperson:
They are the most important asset
for the company as they are the ones
who sell the products, are responsible
for
acquiring
new
customers,
and
retain the old ones. Their work also
includes informing the retailers about
the
promotions
and
any
new
scheme
launched. They are also required to
push for the sale of any new product
launched in the market and make sure
that the retailers are following the
company
launch
guidelines
and
the
regarding
maintenance
Vicioolers. They report to the CE.
Marketing Assistant:
the
of
90. Reports to the ME and is responsible
for the distribution and usage of the
displays and boards in the area. Also
has
to
check
whether
following
the
company
regarding
retailers
guidelines
of
are
the
promotional
displays, other displays and displays
in the Vigicoolers. They report to the
ME.
Pepsi is one of the most well known
brands in the world today available in
over 160 countries. The company has an
extremely positive outlook for India.
"Outside
North
largest
and
America
two
fastest
of
our
growing
businesses are in India and China, which
include
more
than
a
third
of
the
world’s population." (PepsiCo’s annual
report, 1999)
This reflects that India holds a central
position in Pepsi’s corporate strategy.
India is a key market for Pepsico, and at
91. the same time the company has added
value
to
Indian
agriculture
and
industry. PepsiCo entered India in 1989
and
is
concentrating
in
three
focus
areas – Soft drink concentrate, snack
foods
and
vegetable
and
food
processing.
Faced
with
framework
at
the
the
existing
time,
the
policy
company
entered the Indian market through a
joint venture with Voltas and Punjab
Agro Industries. With the introduction
of the liberalisation policies since 1991,
Pepsi
took
complete
operations.
The
control
of
government
its
has
approved more than US$ 400 million
worth of investments of which over US$
330 million have already flown in.
One of PepsiCo’s key strategies was to
develop
a
completely
local
management team. Pepsi has 15 company
owned
factories
while
their
Indian
92. bottling partners own 28. The company
has
set
up
8
greenfield
sites
in
backward regions of different states.
PepsiCo
intends
operations
investment
and
of
to
expand
is
its
planning
approximately
US$
an
500
million in the next three years.
Sustainable
Competitive
Advantage:
Competitive
advantage
is
a
company’s
ability to perform in one or more ways
that its competitors cannot or will not
match.
When
a
company
is
able
to
maintain that advantage a long period
of time that gives it an edge over its
competitors
termed
as
advantage.
must
be
then,
this
advantage
sustainable
Any
seen
competitive
by
is
competitive
advantage
customers
as
a
94. 1.
Big Muscular Brands built through
better market positioning and heavy
investment
in
advertising
and
promotions;
2.
Proven
ability
create
to
innovate
differentiated
and
products
through superior operating base;
3.
Powerful go to market system built
with
the
help
of
superior
relationship base and an impeccable
sales and distribution network.
Making
it
all
work
are
the
extraordinarily talented and dedicated
people
who
are
an
integral
part
of
PepsiCo India.
Communicating with the Customer:
95. Marketing Communication is the means
by
which
firms
attempt
to
inform,
pursued and remind consumers directly
and indirectly about the products and
brands
they
sell.
Marketing
Communication is the central instrument
of
making
brand
equity.
Marketing
Communication consists of six major
modes
of
communications
called
the
marketing communication mix.
1.
Advertising.
2.
Sales promotion.
3.
Events and Experiences.
4.
Public Relations and Publicity.
5.
Direct Marketing.
6.
Personal Selling.
Although PepsiCo uses all the modes in
some form or the other, but this study
97. Threat of New
Entrants
1. Cost Advantage.
2. Proprietary
Products
3. Access to Inputs.
4. Government Policy.
Bargaining Power of
Suppliers
1. Supplier Concentration
2. Importance of Volume
to Supplier
3. Differenciation of
Inputs
4. Impact of Inputs on
5. Economies of Scale.
6. Capital
Requirement
7. Brand Identity.
8. Switching Cost.
Existing
Rivalry
9. Distrbution Access.
Among
10.Retaliation.
Firms
Cost
Firms
in the Industry
6. Presence of Substitute
Inputs
7. Threat of Forward
Integration
8.Cost Relative to Total
Purchase in Industry
1. Bargaining
Leverage.
2. Buyer Volume.
3. Buyer Information.
4. Brand Identity.
5. Price Sensitivity.
6. Treat of Backward
of Differentiation
5. Switching Cost of
Bargaining Power of
Buyers
Integration.
Threat of Substitutes
1. Switching Costs.
2. Buyer inclination to
Substitute.
3. Price performance
trade off of
Substitutes.
7. Product
Degree of Rivalry
differentiation.
1. Exit Barriers
8. Buyer Concentration
2. Industry
Vs Industry.
Concentration
9. Substitutes Available.
3. Fixed costs / Value
10. Buyers Incentive.
added.
4. Industry Growth.
5. Overcapacity.
6. Product difference.
Threat of new entrantsSwitching Costs.
7. :
8. Brand Identity.
9. Diversity of Rivals.
10. Corporate Stakes.
98. Pepsi’s
product
differentiation
caused by their marketing strategy has
limited the threat of new entrants. Also
the
heavy
start
manufacturing
up
and
costs
packaging
of
plants
would be a deterrent. But, the biggest
deterrent
is
reputation;
a
brand
new
image
company
and
would
be
very hard pressed to take market share
away
from
established
players
like
Pepsi, Coke etc. More importantly, the
access
to
distribution
channels
is
currently one of the biggest barriers
to
entry,
and
this
barrier
remains
because both Coke and Pepsi maintain
very strong relation with their channel
partners.
Bargaining power of buyers:
The
level
of
bargaining
power
differs among groups of buyers. The
bottlers,
retailers
and
distributors
99. have
significantly
power
Large
than
the
retailer
greater
end
bargaining
consumer
such
as
does.
Reliance,
Big
Bazaar, Subhiksha are able to extract
profits
from
the
Company
incentives
such
purchases,
promotions
This
is
as
particularly
through
volume-based
and
displays.
true
for
pet
bottles. But, this can also be harmful
for
the
retailers
and
they
losing
customers if they refuse to stock a
particular brand.
The bargaining power of the consumer
is low. They are a fragmented group
and
no
one
individual’s
purchase
accounts for a significant portion of
manufacturer’s
profit.
Although
the
presence of substitutes does serve to
increase buyer power for consumers,
but
a
high
degree
of
brand
loyalty
mitigates this loyalty. In short, we can
100. say that the end consumer has medium
bargaining power.
Bargaining power of suppliers:
There are very few suppliers for the
entire
soft
product
drink
is
ingredients,
industry.
comprised
which
The
of
are
end
few
largely
commodities. In addition, it is safe to
assume that Pepsi accounts for a large
percentage
of
the
suppliers
total
revenues. Thus, it is important for the
suppliers
to
contain
whatever
bargaining power they have. The overall
bargaining power of the suppliers is
considered low.
Threat of Substitutes:
There
are
sweetened
Specially
many
substitutes
carbonated
in
substitutes
India
that
there
pose
to
beverages.
are
a
several
threat
to
101. PepsiCo. They are bottled water, juices,
energy
drinks,
tea,
coffee,
energy
drinks and CSD from its main competitor
Coca Cola India. The challenge lies in
increasing brand loyalty within these
substitute
markets,
because
the
substitute products are, for the most
part,
contained
manufacturer’s
with
product
each
portfolio.
In
India the local beverages like tea and
nimbu
extent
paani
pose
to
the
a
threat
established
to
some
players.
Therefore the threat of substitutes is
very
high
specially
because
of
negligible switching costs.
Existing Rivalry among firms:
There
is
intense
rivalry
between
Coke and Pepsi. This rivalry leads to a
downward
pressure
on
prices
and
significant investment in advertising in
an attempt to build and maintain brand
102. loyalty. In a maturing market such as
domestic carbonated drinks, the only
way to gain market share is to steal
from one’s rival.
Thus, Coke and Pepsi
fight heatedly over prices, suppliers,
spokespeople,
importantly,
retail
the
space
taste
and
ore
buds
of
consumers.
To
do
overall
a
complete
analysis
environment
is
not
of
the
possible
due to the huge sample size of the
population
therefore
before
presenting my findings I would like to
remind
the
reader
the
limitations
or
constraints under which the survey was
done.
This survey may not be fruitful for the
entire population of
internal partners
of PepsiCo butit will surely be useful
104. RESEARCH METHODOLOGY
.
Research Type
:
Exploratory
Research
Sample
1.
Technique : Convenient Sampling
2.
Size
:
400
Respondent
(I
meet 400 respondents out of which
50 were
retailers
the distributors, 250
and
rest
of
were
the
normal consumers.)
1.
Description :
Distributors,
retailers and consumers were the
different part of the varanasi.
2.
Instrument :
Questionnaire
observations of the respondent
&
105. DATA
COLLECTION METHOD
The data collection mode used to get
the desired information from primary
sources
&
Unstructured
Direct
Interviews &the instruments used in the
Questionnaire.
In
this
research
data
was collected through two different
modes, namelyPrimary data collection:
1. Gather
information
through
Questionnaire.
2. Direct interview with Grocery outlet,
Convenience
store,
Eating
and
drinking and consumer.
SECONDARY SOURCES:
1.
Internet Sites - www.google.com,
www.pepsicoindia.com,
www.wikipedia.com.
2.
Magazines
-
.
Business
Management & Economic times.
World
106. DATA ANALYSIS FROM RETAILERS &DISTRIBUTORS
PERSPECTIVE:
Frequencies
PepsiCo having good distrbution channel
Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree
6.67%
3.67%
18.67%
7.0%
64.0%
If we see the chart then we find that
out of 100% respondent 64% are agree
that
PepsiCo
have
good
distribution
107. channel and only 18.67% are strongly
agree, the data
should
focus
shows
on
that company
their
distribution
channel and try to convert customer in
strongly
providing
schemes.
agree
them
respondent
better
services
by
and
108. Distribution channel is importent in positioning of product
Strongly agree
Agree
Can't Say
Strongly Disagree
1.0%
Dis Agree
18.0%
41.33%
38.33%
If we see the chart then we find that
out
of
respondent
100%
are
respondent
strongly
41.33%
agree
that
distribution channel have an important
role in positioning of the product and
38.33% are agree and rest are disagree,
109. it shows that our objective is fulfilled
by this research and we can say that if
we have to promote our product then
we
should
have
strong
distribution
channel.
V.C. coolors provided by the company
yes
No
29.67%
70.33%
110. If we see the chart then we find that
out
of
saying
100%
respondent,
that
they
are
70.33%
are
getting
V.C.
coolers but 29.67 % are saying that
they are not getting, it means company
is not focusing on all retailers that
major concerns for the organization.
111. If we see the chart then we find that
out
of
100%
respondent are
PepsiCo
has
relationship
with
respondent
27.33%
strongly agree that
maintaining
them
and
good
10%
are
113. Perception of retailers/distributors towards the pepsiCo
Distribution channel
Excellent
Good
Bad
Worst
10.67%
5.33%
35.33%
48.67%
If we see the chart then we find that
out of 100 % respondent only 35.33%
are saying that PepsiCo have excellent
distribution
saying
that
channel
and
PepsiCo
10.67%
have
are
worst
114. distribution and 48.67 % are saying that
PepsiCo have good distribution channel,
here area of concern that how company
can make happy those respondent who
are
thinking
that
PepsiCo
worst/bad
Distribution
how
company
can
distribution
perception
distributors.
channel
of
have
channel
develop
and
and
good
change
retailers
the
and
115. "If better scheme is given then replace with coke"
yes
No
48.67%
51.33%
If we see the chart then we find that
out
of
100%
respondent,
51.33%
respondent are saying that if they will
get better services and scheme then
they will switch over to another brand
like coke and only 48.67% are saying
that they will not switchover, it show
116. that company should focus that how
can be provided better schemes and
services
to
distributors
the
in
retailers
result
they
and
will
not
switchover to another brand.
Cross tabulation:
PepsiCo having good distribution
channel * PepsiCo relationship with the
retailers/distributors
Symmetric Measures
Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Correlation
N of Valid Cases
Approx.
Error(a)
T(b)
.593
.042
12.706
.000(c)
.532
.048
10.851
.000(c)
300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Approx. Sig.
117. Bar Chart
PepsiCo
relationship with the
retailers/distributors
140
Strongly agree
120
Agree
Can't Say
Strongly Disagree
100
Count
Dis Agree
80
42.33%
60
40
18.33%
20
8.33%
5.67%
1.33%
0
Strongly
agree
Agree
1.0%
0.67%
Can't Say
0.67%
Strongly
Disagree
0.33%
Dis Agree
PepsiCo having good distrbution channel
If we see the table then we find that the
relationship
with
the
retailers
and
distributors having an important role in
maintaining
the
good
distribution
channel because 42.33% respondent are
agree
to
relation
shows
say
with
that
that
the
we
have
PepsiCo
PepsiCo
and
having
good
that
good
distribution channel.
PepsiCo relationship with the
retailers/distributors * Time taken by
118. the company to make reach the product
at retailers shop
Symmetric Measures
Asymp.
Std.
Error(a)
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Approx.
T(b)
Approx. Sig.
.710
N of Valid Cases
17.383
.000(c)
.664
Correlation
.027
.036
15.334
.000(c)
300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Bar Chart
Time taken by the
company to make
reach the product at
retailers shop
100
One Day
80
3 Day
One Week
Count
One Month
60
29.33%
40
24.67%
22.0%
20
8.67%
5.33%
0.33%
0
Strongly
agree
Agree
1.67%
Can't Say
2.0%
1.33%
Strongly
Disagree
Dis Agree
PepsiCo relationship with the
retailers/distributors
119. If we see the table then we find that
out
of
100%
respondent
are
respondent
saying
that
29.33%
we
have
good relation with the PepsiCo because
they are providing products at right
time .
PepsiCo relationship with the
retailers/distributors * V.C. coolers
provided by the company.
Symmetric Measures
Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Correlation
N of Valid Cases
Approx.
Error(a)
T(b)
.592
.046
12.674
.000(c)
.535
.047
10.927
.000(c)
300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Approx. Sig.
120. Bar Chart
V.C. coolors
provided by the
company
140
yes
120
No
Count
100
80
44.33%
60
40
24.67%
20
10.0%
0
2.67%
10.0%
1.0%
0.33%
Strongly
agree
Agree
Can't Say
Strongly
Disagree
Dis Agree
PepsiCo relationship with the
retailers/distributors
If we see the table then we find that
out
of
100%
respondent
44.33%
respondent are agree to say that they
have
good
because
relationship
of
they
are
with
PepsiCo
getting
visi
coolers by the company, it means visi
coolers
have
an
important
role
in
maintaining the good relationship with
the retailers.
121. PepsiCo relationship with the
retailers/distributors * ‚If better
scheme is given then replace with coke"
Symmetric Measures
Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Correlation
N of Valid Cases
Approx.
Error(a)
T(b)
-.429
.041
-8.203
.000(c)
-.479
.045
-9.427
.000(c)
300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Approx. Sig.
122. Bar Chart
"If better scheme is
given then replace
with coke"
120
yes
100
No
Count
80
60
34.67%
40
24.33%
19.67%
20
8.67%
4.33%
3.0%
1.33%
0.67%
0
Strongly
agree
Agree
Can't Say
Strongly
Disagree
0.33%
Dis Agree
PepsiCo relationship with the
retailers/distributors
If we see the table then we find that
24.33% are strongly aree that they will
not
switchover
to
another
brand
because of better scheme but 34.67%
respondent are strongly agree that if
they
will
get
better
services
and
schemes then they will switch over to
an- other company’s brand, it shows
that if company have to ,maintain good
relationship
distributors
with
then
retailers
company
will
and
be
focus on better services and schemes.
123. PepsiCo having good distribution
channel * logistics facility of the
company
Symmetric Measures
Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Correlation
N of Valid Cases
Approx.
Error(a)
T(b)
.216
.031
3.815
.000(c)
.230
.047
4.075
.000(c)
300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Approx. Sig.
124. Bar Chart
logistics facility of
the company
150
own
company
Count
100
53.0%
50
13.33%
11.0%
7.0%
5.33%
6.67%
3.67%
0
Strongly
agree
Agree
Can't Say
Strongly
Disagree
Dis Agree
PepsiCo having good distrbution channel
If we see the table then we find that
out
of
respondent
better
100%
are
facility
important
respondent
agree
of
role
to
say
logistics
in
distribution channel .
having
53%
that
have
an
good
125. Visi coolers provided by the company *
PepsiCo having good distribution
channel
Symmetric Measures
Asymp.
Std.
Error(a)
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Approx.
T(b)
Approx. Sig.
.487
N of Valid Cases
9.632
.000(c)
.443
Correlation
.049
.052
8.530
.000(c)
300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Bar Chart
PepsiCo having
good distrbution
channel
150
Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree
Count
100
50.67%
50
16.33%
13.33%
0
2.0%
yes
0.67%
2.33%
5.0%
6.0%
3.0%
No
V.C. coolors provided by the company
126. If we see the table then we find that
out of 100 % respondent, 50.67% are
saying that they are agree to say that
PepsiCo have good distribution channel
because they are getting visi coolers
from the company, it shows that visi
coolers
have
an
important
role
having a good distribution channel.
Visi coolers provided by the company *
Perception of retailers/distributors
towards the PepsiCo Distribution
channel
Symmetric Measures
Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Correlation
N of Valid Cases
Approx.
Error(a)
T(b)
.544
.048
11.184
.000(c)
.442
.056
8.509
.000(c)
300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Approx. Sig.
in
127. Bar Chart
Perception of
retailers/distributors
towards the
pepsiCo Distribution
channel
125
100
Excellent
Good
Bad
Count
Worst
75
40.33%
50
29.33%
25
10.67%
8.33%
6.0%
4.67%
0.67%
0
yes
No
V.C. coolors provided by the company
If we see the table then we find that
out
of
100%
respondent
are
respondent,
saying
that
40.33%
PepsiCo
have good distribution channel because
they are getting
visi coolers from the
company, it shows that visi coolers are
very
important
for
having
good
distribution channel.
Time taken by the company to make
reach the product at retailers shop *
128. PepsiCo having good distribution
channel
Symmetric Measures
Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Correlation
N of Valid Cases
Approx.
Error(a)
T(b)
.735
.028
18.714
.000(c)
.713
.030
17.575
.000(c)
300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Approx. Sig.
129. Bar Chart
PepsiCo having
good distrbution
channel
120
Strongly agree
100
Agree
Can't Say
Strongly Disagree
Count
80
Dis Agree
60
35.33%
40
27.33%
18.67%
20
6.0%
0
5.0%
One Day
0.67%
1.33% 1.0%
3 Day
0.67%
One Week
0.33% 1.0%
One Month
Time taken by the company to make reach
the product at retailers shop
If we see the table then we find that
18.67 % respondent are strongly agree
that PepsiCo good distribution channel
because they are getting product within
one
day
and
35.33%
respondent
are
agree to say that PepsiCo have good
distribution channel if they are getting
product
within
company’s
time
that
providing
3
days,it
distribution
is
how
quick
product
at
retailers/distributors.
shows
that
depends on
company
door
of
is
the
130. PepsiCo having good distribution
channel * Services provided by the
distribution/PepsiCo
Symmetric Measures
Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Approx.
Error(a)
T(b)
Approx. Sig.
.640
N of Valid Cases
14.361
.000(c)
.562
Correlation
.048
.043
11.727
.000(c)
300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Bar Chart
Services provided
by the
distribution/PepsiCo
200
yes
No
Count
150
100
59.0%
50
18.67%
5.0%
0
Strongly
agree
Agree
3.33%
Can't Say
0.67%
Strongly
Disagree
1.0%
Dis Agree
PepsiCo having good distrbution channel
131. If we see the table then we find that
59.0% respondent are agree to say that
PepsiCo have good distribution channel
because they are getting good services
and only 18.67% are strongly agree, it
shows
schemes
that
have
better
an
services
important
and
role
maintain good distribution channel.
Distribution channel is important in
positioning of product * ‚How
accurately they fill the order"
Symmetric Measures
Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Correlation
N of Valid Cases
a Not assuming the null hypothesis.
Approx.
Error(a)
T(b)
Approx. Sig.
.097
.034
1.675
.095(c)
.191
.044
3.365
.001(c)
300
in
132. b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Bar Chart
"How accurately
they fill the order"
125
100%
50-80%
Count
100
75
41.0%
50
21.0%
17.33%
25
0
18.0%
1.33%
1.0%
0.33%
Strongly
agree
Agree
Can't Say
Strongly
Disagree
Dis Agree
Distribution channel is importent in
positioning of product
If we see the table then we find that
41.0% respondent are strongly agree
to say that distribution channel have an
important
product
role
in
because
distribution
positioning
of
only
channel they
fill their order by 100%.
by
of
the
good
are getting
133. DATA ANALYSIS FROM CONSUMERS PERSPECTIVE:
Frequencies:
Demanded brand Available in the Market
yes
No
45.0%
55.0%
If we see the chart then we find that
out
of
100%respondent,
only
55%
respondent are agree to say whatever
brand they demanded they are easily
get that but 45% respondent are saying
134. that they are not getting the demanded
brand, it is major concern that why
these respondent are not able to get
their demanded brand.
Cross Tabulation:
Age of the respondent * Soft drink consumed by the respondent in a week
Symmetric Measures
Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Correlation
N of Valid Cases
Approx.
Error(a)
T(b)
.332
.106
3.489
.001(c)
.322
.103
3.363
.001(c)
100
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Approx. Sig.
135. Bar Chart
Soft drink
consumed by the
respondent in a
week
30
25
one
two to three
three to five
more than five
Count
20
15
30.0%
10
5
10.0%
9.0%
8.0%
6.0%
5.0%
3.0%
2.0%
1.0%
0
10-20
21-25
1.0%
26-35
1.0%
Above
age of the respondent
If we see the graph then we find that
age group 21-25 is more potential
customer and company should focus
on them and provide them better taste,
quality according their preferences.
Brand preferred by the respondent *
demanded brand Available in the Market
Symmetric Measures
136. Asymp.
Std.
Value
Interval by Interval
Pearson's R
Ordinal by Ordinal
Spearman
Approx.
Error(a)
T(b)
Approx. Sig.
-.241
N of Valid Cases
-2.455
.016(c)
-.241
Correlation
.093
.095
-2.455
.016(c)
100
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Bar Chart
Demanded brand
Available in the
Market
30
yes
25
No
Count
20
15
29.0%
23.0%
22.0%
10
13.0%
5
10.0%
3.0%
0
PepsiCo
Coke
Others
Brand prefered by the respondent
If we see the graph then we find that
coke brand is more easily available
137. than Pepsi it means there is some fault
in distribution channel and company
should find that and make available
their brand at every retailers shop.
138. Limitations
1.
The
limitations
faced
during
the
dissertation my research as lack of
availability of first hand data. As
the data included is secondary in
nature, authentication of the data is
major concern. The next difficulty
was
the
facts
and
figures
had
change due to change in financial
year,
thus
it
recommendation
part.
could
and
affect
the
conclusion
139. 2.
There can also be the limitation as
the sample size; on the basis of 400
respondents
truthful
we
can
not
result
distribution
get
the
about
the
of
any
channel
organization that major limitation
of my dissertation.
3.
It may happen that what question we
ask
from
the
retailers/distributors, they may not
give tact full answer.
4.
Retailers and distributors had less
time
to
give
questionnaire
answer
and
of
may
our
be
that
answer is not fact full.
5.
The area of concern was limited due
to that research may not give fact
full result.
6.
Respondent
was
not
giving
answer of our questions.
the
140. 7.
The
area
Uttar
of
survey
Pradesh
etc.
was
varanasi,
and
it
was
concentrated on urban area only.
8.
The psychological condition varies
from place to place because in many
places
outlet
owner
was
not
supportive.
SWOT ANALYSIS
In order to get clear understanding of
the position of Diet Pepsi in the various
markets we did a SWOT analysis from
the data obtained from the survey and
the various retailer interviews
141. STRENGTHS:
PACKAGING AND PRICING – Pepsi has the
advantage of having provided the same
kind of health based carbonated drink
the
Slim
Diet
Pepsi
Can
which
in
comparison to the Diet coke is a much
more attractive offering because it is
slim
sleek
equally
healthy
and
way
cheaper.
DISTRIBUTION
–
As
already
mentioned
Pepsi India has one strongest and most
efficient
sales
and
distribution
networks not only in India but also
throughout
the
globe.
Also
in
the
particular market where the survey was
done the sales people have developed
a network which is powerful enough to
make or break sales for Pepsi in any
given quarter
142. P R – One of the most important factors
of success of PepsiCo in India is the
relationship
the
constituents
have
partners.
The
company
with
and
the
Company
its
channel
officials
and
even the employees of FOBO have very
good rapport and relations with the
Channel
partners.
introduced
Also
recently
benefit
retailer
the
schemes
such as the gold card membership and
other
free
gifts
and
offerings
not
only motivate the retailers but also
helped us create visibility for the Slim
Diet
Can
range
in
a
profound.
The
experience of working with people who
welcome us with a smile rather than a
frown will always be remembered.
NON-CARBONATED
strengths
of
–
This
Pepsi
is
that
one
those
often
goes
unnoticed but plays a very important
role in success of Pepsi in India and
even
around
carbonated
the
globe.
segment
is
The
non-
dominated
by
143. Pepsi, Tropicana is the market leader in
fruit
juices.
segment,
In
Aquafina
the
mineral
clearly
water
outsells
Kinley without ay fuss.
Bottling – Pepsi has the advantage of
being in partnership with the largest
bottler in India, the R K Jaipuria Group.
RKJ Group controls almost 65% of the
bottling operations of PepsiCo in India.
At
times
this
is
also
seen
as
a
weakness of Pepsi in India attributing
to the fact that the Jaipuria group is so
strong that in certain circumstances it
can even defy the parent Company.
WEAKNESS:
SECOND MOVER DISADVANTAGE - Diet Pepsi
Cola
does
have
the
first
mover
advantage which Diet Coke has and this
may prove to be a major shortcoming
also in the Agra Market no Extensive
144. efforts have been made to popularize
it.
Brand
Coke
–
On
a
proves
image
in
comparative
to
have
customers
a
scale
better
mind
Diet
brand
than.
This
compels to incur extra expenditure in
Advertising,
Promotions
and
Sponsorship.
MCDONALDS – This is one of the most
important
reason
why
Diet
Coke
outsells Pepsi worldwide and specially
in the United States. Similarly, in India
Diet Pepsi may suffers in sales because
of
institutional
sales.
Now
Pepsi
is
trying very to bridge this gap in the
near future.
EXPENDITURE
–
Right
from
the
very
beginning Pepsi has hired the biggest
and
the
most
expensive
stars
in
the
country as its brand ambassadors and
has spend heavily on advertising which
has affected its balance sheet.
145. Vizicoolers – At presently this is one
the biggest problems faced by Pepsi.
Pepsi is not able to get refrigerators
in India so they have to import it other
namely Sri Lanka, Mauritius etc. Because
of
this,
retailers
are
facing
lot
of
problems in vigicoolers. They are not
able
to
get
new
refrigerators,
replacements for old ones, even the
repair work takes lot of time because
at
times
even
the
spares
are
not
available on time.
OPPORTUNITIES:
Lowest Per Capita Consumption – Even
after almost decades of presence in
the
market,
there
are
growth
opportunities for Diet Pepsi in India as
here
the
per
carbonated
capita
beverages
lowest in the world.
consumption
is
one
of
of
the
146. Health
Based:
apart
from
its
Juice
Based drinks portfolio Pepsi can Use
the
Slim
Diet
promoting
can
it
as
to
a
the
maximum
health
drink
by
at
Cheaper prices.
THREATS:
NGO’s – NGO’s like CSE can seriously
hamper
the
companies
This
sales
and
operating
happened
controversy
prospects
in
this
industry.
the
during
involving
of
pesticide
both
coke
and
Pepsi.
HEALTH
–
Growing
health
awareness
among people and some of ill effects
of carbonated beverages have pursued
many people to switch over to noncarbonated
seriously
beverages
hamper
the
that
can
long-term
147. prospects of the entire Industry and
not Pepsi.
ENVIRONMENT – Environmental concerns
are
often
raised
because
of
the
massive amount of water extracted by
the
bottling
drop
in
plants
resulting
groundwater
affects
the
local
in
level
the
which
population
adversely.
In India PepsiCo adopted the strategy
of growth through intensification. In
the
intensification
strategy,
it
used
market penetration by developing one
of the strongest sales and distribution
network in the world and utilizing it to
the fullest.
.
149. 2.
To cheque visi-cooler with 100%
purity.
3. To see a soft drink in Brand
Order.
4. To see every outlet is this soft
drink present in display rack.
5.
To see every outlet visi- cooler
will present in prime location.
6. To visit every outlet in regular
basis.
7.
To go every outlet and listen
any
problems
in
visi-
cooler
and soft drink to be noted in
complaint diary.
8. To see each and every outlet
worked in better condition.
9. To see as a Market developer
(M.D) every outlet full fills in
150. terms and conditions with visiCooler.
10. To see as a Market developer
(M.D.)
if
any
outlet
will
not
selling your product than you
asked why you are not selling
in
my
product.
Then
you
give
advice to outlet.
FINDINGS
1.
Some retailers are unable to get
the services which are provided by
the company
151. 2.
There are some retailers are not
happy with services provided by the
distributors and the company
3.
There is a gap between the retailers
and the company
4.
Distributers are not satisfied with
the services like margins, product
availability, credit facility
5.
Customers
prefer
the
taste
of
Thumbs Up more than the PepsiCo’s
product.
6.
Most of the time desired products
are not available or not chilled due
to un-availability of visi coolers.
7.
In most of the mix outlet company
has not provided its Visi Cooler, so
it is becoming the major cause for
not getting fulfill of the demand.
Because
retailers
are
promoting
that brand to the consumer which
company is satisfying them more in
152. terms
of
Visi
Cooler,
Schemes,
Relationship etc
8.
Retailers are not happy with the MDC
(Marketing
Development
Coordinator) of PepsiCo. Retailers
are saying that what they promise,
do not fulfill that.
9.
Marinating
good
relationship
with
the retailers as well distributors
is
very
important
for
having
a
strong distribution channel
10. Visi cooler have an important role in
enhancing the distribution channel
and policy.
11.
Time
concern
is
very
important
in
good distribution channel, it means
providing product at retailers door
within a time.
12. Company
should
provide
better
facility of logistics because without
logistics
any
company
cannot
154. RECOMMENDATION
This is one of the most important and
most
difficult
part
of
the
study.
I
arrived at certain recommendations for
PepsiCo India after the analysis of the
data.
Some
of
the
important
recommendations are as follows
1.
There
should
be
and
correct
feedback from the retailers on the
performance of salesmen. This will
help
improve
their
efficiency
and
155. accountability. Moreover, this will
also help in reducing the confusing
that
the
because
retailers
the
have
salesman
at
times
does
not
explain the schemes properly.
2.
As already mentioned V.C. coolers
are
a
major
reason
of
dissatisfaction among retailers. The
periodical maintenance check of V.C.
coolers is done at three months.
This should be done at an interval
of 45 days or 60 days instead of
the current practice of 90 days
1.
Company should adopt aggressive
marketing strategy that it could
reach each and every place.
2.
Company should have better
logistics facility for making reach
156. the product at retailer’s door at a
right time.
3.
Marketing
Development
Coordinators/
Marketing
Executives/ Sales Executives of the
company
making
must
better
focus
more
relationship
for
with
retailers.
4.
Company should provide visi cooler
to every retailer. Because who is
having visi cooler of which company
they are promoting the same brand
to the consumer.
5.
Company should more focus on
youth of the country because
youths more prefer the soft drinks.
157. 6.
Company
should
consumers
focus
taste
and
on
the
preferences
and launch new product according
to the consumer taste and need.
7.
Company should focus on the better
services and schemes are providing
to
the
retailers
/distributors
or
not if not then why.
8.
Company
should
maintaining
good
relationship with the distributors as
well as retailers.
In
order
changing
to
respond
market
effectively
trends
to
and
challenges, soft drink companies must
support their improvement efforts with
industry-specific
should
focus
channel
because
solutions.
on
it
their
is
Company
distribution
blood
of
the
158. company because if product will not
reach the market then there is no need
of their production as well as company
should
focus
on
better
services
/schemes which can be provide to the
retailers as well as distributors.
CONCLUSION
After analyzing all the aspects of the
data
available
and
giving
some
important recommendations a suitable
conclusion which should be derived for
this study. However, before starting the
conclusion part, the objective of the
research must be kept in mind so that
we can arrive at a befitting conclusion
for the research problem.
The primary objective of this research
was
to
know
distribution
channel
Strategy of PepsiCo and to know the
159. importance
of
Distribution
channel
strategy in Positioning of the product.
The data collected provided a sound
base
for
understanding
organizational
India.
set
up
of
By analyzing the
literature
the
overall
PepsiCo
in
data and the
review,
following
conclusion was inferred:
1.
The Sales and Distribution Network
of Pepsi is very strong and almost
flawless.
2.
PepsiCo India had the first mover
advantage
market
and
when
it
it
entered
capitalized
on
the
that
advantage to grab the market.
3.
Franchisee
combined
operations
based
with
add
the
operations
Company’s
strength
to
the
overall presence of the Company in
the market.
160. 4.
Franchisee
takes
operations
interfere
and
in
care
of
its
does
not
operations.
The
PepsiCo
its
Franchisees are required to report
to
the
Company
at
specific
time
intervals.
5.
The
Advertising
conceived,
Campaigns
implemented
are
by
the
PepsiCo and Franchisee has no say
in that.
6.
It is very important to develop good
relationship
with
the
retailers
by
providing them better services and
schemes.
7.
Maintaining
with
the
the
good
relationship
distributors
are
very
important for the company because
they
are
the
main
distribution channel.
part
of
the
161.
162. BIBLIOGRAPHY
1.
PEPSICO INTERNATIONAL OFFICIAL WEBSITE,
2.
PEPSICO INDIA WEBSITE.
3.
PEPSICO INTERNATIONAL INTERNAL REPORT.
4.
www.google.com.
5.
www.pepsicoindia.com.
6.
www.wikipedia.com.
7.
Magazines - Business World Management & Economic times.
163. Questionnaire:
Dear Sir
On behalf of PepsiCo India Ltd., We want to thank you for giving us the
opportunity to serve you. Please help us serve you better by taking a
couple of minutes to tell us about the service that you have received so
far. We appreciate your business and want to make sure we meet your
expectations.
This will be used only for academic purpose only
Name of Retailer/Distributors _______________________
Address
__________________________________
164. Phone no
___________________________________
1. PepsiCo have good distributions channel?
a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.
Disagree
2. Distribution channel has an important role in positioning of the
product?
a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.
Disagree
3.
How much time, Company takes to make reach the product at
retailer shop?
a. One day
b. 3 day c. One week 4. One month.
4. You are having logistics facility of company or own?
a. own
b. Company
5. Are you being provided the v.c.coolors by the company?
165. a. yes
b. no
6. PepsiCo has good relationship with the distributors/retailers?
a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.
Disagree
1.
Perception of retailers/distributors towards the PepsiCo’s
Distribution Channel?
a. Excellent b. good c. bad d. worst
8. Are you happy with services provided by the
distributors/PepsiCo?
a. yes
b. no
9. Is there any govt. interference?
a. yes
b. no
10. Are you satisfied with distribution policy of the PepsiCo? If chance
given to you replace with coke
a. Yes
b. no
11. Ever missed your order? If yes then what may be main reason?
166. a. Wrong order
b.sudden change in weather
c. change in
schemes
12. How frequently Executive comes to take orders?
a. Daily
b. After 1-2 days
c. once in a week
13. Accuracy of order fills?
a.100%
b. 100- 80%
c.50-80%
d. below 50%
167. Consumers:
Name:
Gender:
a. Male
b. Female
Age:
a. 10 to 20 b. 21 to 25 c. 26 to 35 d. 35 above
1. How many times you go for soft drink in a week?
a. One b. Two to three c. three to five d. more than five
2. Which brand’s soft drink you usually drink?
a. PepsiCo
b. Coke c. others.
3. Do you get easily your demanded brand in the market?
a. yes b. No
4. Why you prefer this brand?