A short project on PEPSI India.

1. BCP REPORT AT
ON
STRATEGY FOR ACHIEVING GROWTH
TARGET
(EXPANDING RETAILER BASE IN MANGALORE
REGION)
PRAVEEN SURESH 1116121

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3. CONTENTS
 INTRODUCTION
. Industry overview
. Company profile
. Introduction to distribution channels
 NATURE OF THE PROBLEM
 PROBLEM RESOLUTION: PROCESS
 PROBLEM RESOLUTION: OUTCOMES
 PROBLEM RESOLUTION: MAJOR
CONCLUSIONS
 LIMITATIONS OF THE STUDY
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 REFERENCES

4. INTRODUCTION
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5. INDUSTRY OVERVIEW
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6. The Soft Drink Industry consists of establishments primarily
engaged in manufacturing non-alcoholic, carbonated beverages,
mineral waters and concentrates & syrups for the manufacture of
carbonated beverages. Establishments primarily engaged in
manufacturing fruit juices and non-carbonated fruit drinks are
classified in canned and Preserved Fruit & Vegetable Industry.
Products
• Aerated waters
• Carbonated beverages
• Mineral and spring waters
• Soft drink concentrates and syrup
• Soft drink preparation carbonating
Other Classifications
•Milk Based Drinks
•Fruit AIMIT
Juices & Nectars
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7. So what exactly are New Age
Beverages?
Well, this is a new category within
the Beverage Industry that covers
the new style of beverages.
This new "category" is growing and
changing. Before only Energy Drinks
and really new innovative beverages
where part of the category.
Now the category has evolved and
you can include enhanced
water, tea's, diet drinks, iced coffee
and really, any new drink.
-Chicago Tribune – Business23.02.2010
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8. •The first marketed soft drinks (non-carbonated) appeared in the
17th century. They were made from water and lemon juice
sweetened with honey. In 1676, the Companies de Limonadiers
of Paris was granted monopoly for the sale of lemonade soft
drinks. Vendors would carry tanks of lemonade on their backs
and dispensed cups of the soft drink to thirsty Parisians.
Industry in India
The soft drinks industry in India is $10-billion-strong, and growing
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percent per annum, says the ministry of food processing
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industries.

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11. COMPANY PROFILE
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12.  PepsiCo is the world’s largest snack food company and is
among the top five largest food and beverage companies
in terms of annual revenue. Its main competitors in the
food and beverage industry include The Coca-Cola
Company, Nestle, Kraft Foods Inc and Archer Daniels.
 Born in the Carolinas in 1898, Pepsi-Cola has a long and
rich history. The drink is the invention of Caleb Bradham
(left), a pharmacist and drugstore owner in New
Bern, North Carolina.
 Pepsi-Cola
merged with Frito-Lay in 1965 to form
PepsiCo and become the giant in the snack food and
beverages industry it is today. Adding to their already long
of brands and subsidiaries, PepsiCo purchased
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Tropicana in 1998 and then merged with Quaker in 2001.

13. Net revenue $66 Billion (as per 2011 Annual Report)
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14. PEPSI POPULAR PRODUCTS.
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16. Pepsi Operations
 Pepsi is organized into four business units, as follows:
 1) PepsiCo Americas Foods (PAF), which includes Frito-
Lay North America (FLNA), Quaker Foods North America
(QFNA) and all of Latin American food and snack
businesses (LAF);
 2) PepsiCo Americas Beverages (PAB), which includes all
of North American and Latin American beverage
businesses;
 3) PepsiCo Europe, which includes all beverage, food and
snack businesses in Europe; and
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 4) PepsiCo Asia, Middle East and Africa (AMEA), which
includes all beverage, food and snack businesses in

17. PepsiCo in India
 PepsiCo entered India in 1989 and has grown to
become one of the largest food and beverage
businesses in India.
 PepsiCo India has been consistently investing in the
country and has built an expansive beverage and
snack food business supported by 38 beverage
bottling plants and 3 food plants.
 PepsiCo India’s extensive portfolio includes iconic
brands like Pepsi, Lay’s, Kurkure, Tropicana
100%, Gatorade, Quaker and fast growing brands i.e.
Nimbooz and Aliva.
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 Within 2 decades, the company has been able to

18. Key Facts
 Indian headquarters: Gurgaon, Haryana
 Employment
opportunities: Presently employs 6400
people and provides indirect employment to almost
200,000 people
 Facilities:
 38 bottling plants
 3 food plants
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19. INTRODUCTION TO
DISTRIBUTION
CHANNELS
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20. MEANING
A channel of distribution or trade channel is the
path or route along which goods move from
producers to ultimate consumers.
It is a distribution network through which a
producer puts his products in the hands of actual
users.
A trade or marketing channel consists of the
producer, consumers or users and the various
middlemen who intervene between the two.
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21. MEANING (contd….)
The two main categories of marketing intermediaries
are Wholesalers & Retailers.
Wholesaling intermediaries are people and firms that
sell primarily to retailers and other wholesalers. They
do not sell significant amounts to ultimate
consumers.
Retailers, by contrast, are persons or firms that sell
goods and services to individuals for their own use
rather than for resale. Retailers are the marketing
intermediaries that consumers are most familiar with.
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The typical consumer buys food, clothing, personal-

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23. IMPORTANCE
•After products are produced and priced, they must be
distributed to the marketplace. All organizations perform a
distribution function.
Products are distributed in
supermarkets and convenience stores across the country or
even beyond.
•Among the marketing 4 Ps: (product; place/distribution
channels;
price;
and
promotions/communications)
marketing channels or distribution channels are still an
important source of competitive advantage, since in the
other Ps, for instance products, attributes are available for
competitors, but
to imitate Distribution builds stable
competitive advantages, since marketing channels have a
long-run character and to build them it is necessary to have
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a consistent structure; and due also to the fact that they are

24. IMPORTANCE (contd…)
•The realisation process of a marketing strategy
of a company lies not only in achieving specific
production goals and a proper communication
with recipients during realization of the
promotion phase but with constant and very
important factor i.e to provide finished
products to customers. A basic condition for
achieving goals set out in the trade is that the
finished product meets the needs of the
consumer, in particular it has a suitable form and
it is delivered at the right time and place
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29. CHANNEL CONTROL STRATEGY
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30. ** - COBO – COMPANY OWNED BOTTLING OPERATION
** - FOBO – FRANCHISEE OWNED BOTTLING OPERATIONS
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32. RETAIL DISTRIBUTION CHANNELS OF PEPSI
INDIA
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33. RETAIL DISTRIBUTION CHANNELS OF PEPSI
INDIA
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34. NATURE OF PROBLEM
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35. PROFILE
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36. SALES VOLUME
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37. RETAILERS
SALES VOLUME
COMPOSITION
OF NON
ORGANISED
RETAILERS
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38. PROBLEM
FORMULATION
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39. To ensure achievement of consistent growth target there are
2 avenues
 Increase
customer base which means to change
customer behavior – This is being done by National
Branding Teams which run campaigns, ads etc and is not a
localized activity. We also are aware that all FMCG products
predominantly use PULL strategy and Pespi is no exception.
Moreover branding/marketing activities are not the major
functions of distribution channel. And most importantly
changing customer behavior takes a lot of involvement and
time. So this avenue is not feasible and within the
powers/control of the Mangalore Region.
 Increase retailer base to ensure “availability” and thus
capture competitor’s share as, in the soft drink segment
visibility and availability lead to Sales
 Option (b) is more viable, easier to focus and has great
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potential to increase sales.
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40. Coverage
by
Pepsi
Grocery, Eateries, Modern Trade,
Premise is wide and very indept.
in
On
Further, since PET accounts for 80% of the
volume, Pepsi has a stronger pull in
Eateries and Grocery Stores where sales
volume is high in this (PET) segment.
Moreover
local
manufacturers
can’t
compete with Pepsi as they loose the price
advantage in that packaging segment.
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41. •Thus the one retailer class segment which
can be focused on is the Convenience
Channel (PAAN SHOPS, STD BOOTHS,
MILK BOOTHS,SMALL EATERIES).
•Even in these Pepsi has made very good
inroads owing to its Pull strategy.
•However, out of these retailers Pepsi is
already strong in all categories except the
“C” class retailers.
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42. •“C” Class retailers predominantly sell local soft
drinks and not even coke.
•Thus “C” class retailers can be targeted as their
volumes though small are not negligible as they
drive atleast 8-10% of volume.
•Out of this 8-10% of volume, 95% of those
volumes are those of local soft drinks.
•A pie of this share will help Pepsi significantly
increase its volumes
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44. Based on the above, we can arrive at a
conclusion that to increase sales & achieve
consistent growth figures Pepsi needs to
increase its “C” class Retailer Base.
Thus we can formulate the problem
“How to increase market share by
increasing “C” class retailers base i.e
targeting those retailers who are not
presently selling pepsi/coke (branded
carbonated players)”
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45. PROBLEM
RESOLUTION:
PROCESS
We take past surveys of “C” retailers and customers at their shops and
then we use certain related Data from those surveys and try to
analyze, interpret and then assess the actual reasons why “C” class
retailers are not selling PEPSI or any other branded carbonated drinks
and also what is the customer preference.
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46. We need to further analyse some
data
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52. PROBLEM RESOLUTION
OUTCOMES
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53. Based on the information & analysis provided in
the earlier chapter, we come to the conclusion
that
The “C” Class Retailers are open to retailing
Pepsi however the impediments are
 Information
 Relationship management
 Extensive monitoring
Customers at “C” retailers are willing to buy
Pepsi products, provided they are available.
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CAMPAIGNS
& PROMOTIONAL
ACTIVITIES
@
LOCATIONS
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56. VISIBILITY CREATION
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57. RETAILER RELATIONSHIP MANAGEMENT
•LOYALTY INCENTIVES
•RECOGNITION
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58. AGGRESSIVE
RETAILER ACQUISITION
A fresh retailer acquisition drive across Mangalore and other
areas will help forge new retailer relations. An intense
campaign to drive retailer acquisition with a specific target
(to each sales executive) will bring in more focus.
•Further, the distributors can also given a yearly
acquisition target and ensure that those numbers are
achieved each year which will ensure that the retailer base
is “replenished” if old retailers drop out and “renew” and
“identify” new retailers.
•Distributors can be made accountable for loss of retailers
and also recognized for good acquisition numbers.
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59. PROBLEM
RESOLUTION: MAJOR
CONCLUSIONS
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60.  We come to the concluding part of the
report wherein we have resolved the
problems of
 “Decreasing market share”
 “Increasing competition of local soft drink
manufacturers”
 “Decreased reach of Pepsi products”
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61. Research Methodology
Research Methodolgy used for this BCP Observation &
 Interviews
 Field Visits
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62. Feasibility of the solution
 Based on the data provided and its analysis
and also based on interactions with company
officials, retailers and their customers a
focused approach to increase the retailer base
will definitely help in augmenting the sales
volume and the overall market share of Pepsi.
 This solution “of increasing the retailer base”
and the strategies suggested is feasible as it
is developed keeping in mind the distributor
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strength, the company resources and its

63. Estimated Cost & Benefits to Pepsi
 Increased sales volume (based on the
present local soft drink sales volume by
retailers)
 Increase in market share
 Widened customer base
 More visibility
 Lesser dependence on other channels
 Scope for cross sell of other Pepsi
Products
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64. LIMITATIONS OF THE
STUDY
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65.  The entire study is mostly based on secondary data provided to
us by the company, reports, publications, magazines and also
certain past surveys.
 The analysis has been broadly based on the some past surveys
whose sample size was just about 10% of the “C” class retailers
base in Mangalore which is not sufficient to arrive at a
conclusive and concrete analysis
 The study is restricted to Mangalore Region only while the
present Pepsi Regional Office based at Mangalore handles
entire Dakshina Kannada District.
 The company doesn’t declare all the data and internal data are
kept confidential hence knowledge about certain
practises, policies, strategies related to Distribution, Retailers is
still not clear and is based on theories.
 Though every sincere and possible effort has been made to
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collect the data, some retailers, mostly

66. REFERENCES
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67.  Oswald A. J. Mascarenhas, S. J., Ph.D. – “PROBLEM-
CENTERED SUMMER INTERNSHIP PROJECTS (SIP) AND
BUSINESS CONSULTANCY PROJECTS (BCP): NEW
RESEARCH PARADIGMS” MAY 7, 2012 - Revised and
expanded: May 31, 2012

Soft Drinks International (Journal) – Aug 2009; Pg-14
 Valentin Angelkov, Tray Black, Angie Green, Jerry James &
Erin Lutz – “Pepsi’s Strategy in the Carbonated Soft Drinks
Market” – Project Submitted to – The McCombs School of
Business, The University of Texas at Austin - April 30, 2003
 Pepsi annual report – 2010,2011,2012
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68.  http://www.firstpost.com/business/as-
summer-sizzles-its-war-in-indias-10-bnbeverage-market-270041.html - Date last
accessed on 24.03.2013
 http://beveragemanager.net/Article-
68
SingleNews.176.0.html?&tx_ttnews%5Btt_news
%5D=4369&cHash=4625b26628d7df11d
31f21ac7a1d8496 – Date last accessed
on 01.02.2013
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69. THANK
YOU
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