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ANALYSIS OF SALES IN PEPSI IPL 2015 AT PEPSICO INDIA
HOLDINGS PRIVATE LIMITED BANGALORE
ORGANIZATION STUDY
Submitted to
RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)
(Affiliated to Mahatma Gandhi University, KOTTAYAM)
In partial fulfilment of the requirements for the award
Of
MASTERS OF BUSINESS ADMINISTRATION (MBA)
(2014-2016)
By
AAKASH ASOKAN
Reg. No: 1421003
RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)
RAJAGIRI VALLEY P.O
KOCHI-682039
Page 1
DECLARATION
I hereby declare that the report entitled “Organization study of PepsiCo India Holdings Private
Limited, Bangalore” is a bonafide record of the organization based project study done by me at
PepsiCo India Holdings Pvt. Ltd, Bangalore during the period 2nd
April 2015 to 28th May 2015 as
part of my MBA program at Rajagiri College of Social Sciences, (Autonomous) Kochi, Kerala.
This study has been undertaken in partial fulfillment of the requirement for the award of Master
of Degree in Business Administration by Mahatma Gandhi University, Kottayam, Kerala.
I also declare that this report is the result of my sincere effort and has not been submitted in full or
part thereof, to any other university or institution for the award of any degree or diploma.
PLACE: KOCHI
DATE: 07/07/2015 AAKASH ASOKAN
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ACKNOWLEDGEMENTS
My gratification and elation on the successful completion of this organization based report would
be incomplete without mentioning the names of all the people who helped me with it and without
whose guidance and encouragement this wouldn’t have been successful. Above all I thank the
Almighty for his grace and blessings at each and every stage of the project.
I express my sincere gratitude to Dr. Binoy Joseph, Principal, Rajagiri College of Social
Sciences (Autonomous), Kakkanad for showing his overwhelming support and interest shown in
the work.
I would like to express my deepest gratitude to project guide Mr. Nishanth G, Marketing
Development Manager, PepsiCo India Holdings Private Ltd., Bangalore for his constant
support and guidance during the study.
I would like to express my respectful thanks to Mr. Suresh Babu, Assistant Marketing Manager
PepsiCo India Holdings Pvt. Ltd., Bangalore for their support and help for the successful
completion of the study.
I extend my sincere thanks to Prof. Abraham Joseph, Faculty Member, Rajagiri College of
Social Sciences (Autonomous), Kochi, Kerala for having spared his valuable time and for all the
guidance given in executing the project as per requirements.
Last but not the least I would like to record my deepest sense of gratitude to my family and friends
for their support and constant encouragement.
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TABLE OF CONTENTS
PROFILE STUDYOF THE ORGANIZATION........................................................................ 5
INDUSTRY ANALYSIS .............................................................................................................. 6
PEPSICO – AN INTRODUCTION ............................................................................................ 9
HISTORY AND INCORPORATION....................................................................................... 10
PEPSICO INDIA ........................................................................................................................ 18
PEPSICO’S MISSION ............................................................................................................... 20
PEPSICO’S VISION .................................................................................................................. 20
FINANCIAL STATEMENT OF PEPSICO INC, AND SUBSIDARIES .............................. 22
PEPSICO’S BUSINESS MODEL ............................................................................................. 23
ORGANIZATIONAL STRUCTURE....................................................................................... 26
PRODUCT OR SERVICE PROFILE ...................................................................................... 29
CUSTOMERS OF PEPSICO .................................................................................................... 32
FUNCTIONAL DEPARTMENTS............................................................................................ 34
FUTURE GROWTH AND PROSPECTS................................................................................ 36
SWOT ANALYSIS OF PEPSICO ............................................................................................ 37
ROUTINE WORK...................................................................................................................... 44
PEPSI IPL -2015-SALES DATA............................................................................................... 50
FINDINGS AND SUGGESTIONS............................................................................................ 55
RECOMMENDATIONS............................................................................................................ 56
BIBLIOGRAPHY....................................................................................................................... 58
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EXECUTIVE SUMMARY
This project report is basically to understand the theoretical and functional aspects of an
organization. The project study was under taken at the Bangalore unit of PepsiCo India Holding
Pvt. Ltd., one of the major multinational companies. This study was aimed at an overall exposure
to the working of the organization there by identifying the specific problems faced by it and
suggesting recommendations or solutions.
The first part of this report deals with profile study of the organization covering specific topics like
Industry profile, incorporation and history of the organization, organization structure of PepsiCo
India Holdings Pvt. Ltd. The second part of the report deals with routine work in the organization
and in the stadium .This part gives information about the topic “Analysis of Sales of Pepsi Co
(India Holdings Pvt LTD Bangalore) during IPL 2015.”
The purpose of the study is to understand the consumer’s perception towards Pepsi Co products
and the various marketing strategies used by the company to capture the sales during the matches.
This also gives a clear view about the perception of consumers towards soft drinks. The study is
totally confined to improve the sales of Pepsi Co products in the stadium.
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SECTION I
PROFILE STUDYOF THE ORGANIZATION
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INDUSTRY ANALYSIS
The food & beverage industry is usually defined by its output of products that satisfies various
demands of people on food & drinks. In today’s world, the food & beverage industry has expanded
a lot. It has spread across all walks of life. Hotel, restaurants, industrial canteen, bars, soft drink
and juice companies, hospital canteen, railway, airways, candy manufacturers, all are now part of
food & beverage industry. The basic function of this industry is to serve food & drink to people
and thereby satisfy their needs. The main aim is to achieve customer satisfaction. The ever rising
consumer attraction towards the readymade food keeps the industry boosted for decades. As per
Food Processing’s Annual list 2014, top 5 food and beverage companies in the world include
PepsiCo Inc., Tyson Foods Inc., Nestle, JBS USA and Coca- Cola.
Products manufactured by the beverage industry include: bottled water, juice, sparkling and still
drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks, energy drinks,
sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider and spirits. The non-
alcoholic beverage industry is the fastest growing sector. This rapid growth is partially due to the
combination of maturity of the carbonated soft drink sector and heavy investments by major food
and beverage companies.
Soft drink industry is growing at 6% to 7% every year. Global beverage players, Coke and Pepsi
have a combined market share of about 95%, Campa Cola has 1% share and the rest is with the
local players and some fake players. There are about 110 soft drink producing units in India, of
which almost 60% is owned by Indian bottlers. The beverage industry is broadly classified into
water and flavored drinks. Flavored is divided into Alcoholic and Non-Alcoholic drinks.
Nonalcoholic includes milk based drinks, fruit based drinks, 100% fruit juice, hot beverages and
soft drinks.
Among the non-alcoholic drinks, carbonated soft drinks form the core part. Coca-Cola, PepsiCo
and Cadbury-Schweppes are the dominant players in this field. Cola segment has a market share
of around 62% which includes the drinks like Pepsi, Coca-Cola, Thumps up, Diet Pepsi and Diet
Coke. The remaining non- cola products includes the flavors like orange, cloudy lime, clear lime
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and mango. Soft drinks are available in variants like glass bottles, aluminum cans and PET
(Polyethylene Terephthalate) bottles. They are also available in disposable containers.
Market preference in India varies with regions. Cola markets are dominated in the metro cities and
northern states like Uttar Pradesh, Punjab, and Haryana etc. Orange flavors and sodas are more
preferred by the southern states. Western states prefer mango flavors and drinks like diet Pepsi and
diet coke constitutes only 0.7% of the total carbonated beverage market. The per capita
consumption of soft drinks in India is about 5 to 6 bottles, same in Nepal, 17 in Pakistan, 21 in Sri
Lanka, 73 in Thailand, 173 in Philippines and 605 in Mexico. Steady growth and increasing sales
show highly rewarding future for the soft drink business in India. This industry also supports
growth of industries like refrigeration, glass, transportation and sugar.
NCAER (National Council of Applied Economic Research) conducted a study and it says that 91%
of the soft drink sales are made to the lower, middle and upper middle classes. Indian beverage
market is growing at a rate of about 6% a year, Chinese by 16% and the Russian market expanded
at almost four times the rate of growth of the Indian market. The two major players contributing
to the growth of Indian market is Coca-Cola and PepsiCo. Coca-Cola claims a market share of
51%, while Pepsi has a share of 46%.
Soft drinks industry continues growth in India mainly due to the demand for juices and bottled
water. Carbonated drinks and other sports and energy drinks are facing pressure due to growing
health concerns. They still continue to grow because of the brand name they hold and the efforts
they take. Both Coca-Cola and PepsiCo have been expanding their non-carbonated drink line-ups,
as consumers seem to be shifting away from carbonated soft drinks. New flavors were launched
by the leading companies like Coca-Cola India Pvt Ltd and PepsiCo India Holdings Pvt Ltd which
helped them in maintaining consumer’s interest in spite of slowdown. This made the consumers
buy the product at least once to taste the new variety. Smaller domestic companies like Hector
Beverages Pvt Ltd and Pioma Industries Ltd also introduced guava flavors, which is new in the
market.
Since the demand for juices has increased, the global beverage leaders, PepsiCo and Coca-Cola
compete mainly on juices. They are very close to each other in case of carbonates, bottled water
and juices. PepsiCo launched Tropicana Coconut Blends and Coca- Cola introduced Minute Maid
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Guava flavor in 2013 to attract consumers. The factors like convenient location and easy to buy
products helped to continue the dominance of traditional channels to continue. But the modern
formats like hypermarkets and the modern trade which provides better assortments and price is
gaining an edge over the other.
As per Market Research Company Euro monitor International, global soft drinks volumes
expanded over four percent in 2013 and value sales grew by more than five percent with a retail
market size of over US $531.3 billion dollars. While the US remains the world's largest market in
both value and volume, markets such as China, Brazil and Mexico are also growing rapidly. The
2013 retail soft drink market size in China totaled US $66.5 billion with 15.2% percent fixed
growth. Brazil and Mexico's totals were US $22.5 billion and US $28.3 billion with 8.0% percent
fixed and 8.2% percent growth, respectively.
Now let’s have a look into the bottled water industry. It can be divided into two primary business
models, which is home & office delivery and retail bottled water. The home and office delivery
portion accounts for around 12% of the bottled water market and 88% by the retail sale. Today,
with a rise in health awareness, poor quality of tap water, increase in tourism and the ease of
availability of bottled water, the per capita consumption of bottled water in India is on the increase.
The total market was valued at Rs.60 billion in 2013 and is expected to grow at a rate of 22 percent,
to reach Rs.160 billion in 2018. Indian bottled water market is dominated by five players
accounting for a share of 67%. They include Bisleri, Coca-Cola, PepsiCo, Parle and Dhariwal.
Considering the demand of soft drinks, during summer season, there is demand from the customer
side. They will come to stores asking for soft drinks. But, otherwise the companies will have to
push the products aggressively. Sales promotions play a major role in such times. Sales will not
double and all, but will definitely increase by 20-30%.
Nature of competition: Oligopoly. An oligopoly is a market structure in which a few firms
dominate. When a market is shared between a few firms, it is said to be highly concentrated.
Although only a few firms dominate, it is possible that many small firms may also operate in the
market. In the soft drinks industry 95% of the total market share is constituted by the dominant
players Pepsi and Coke. The main characteristics of firms operating in a market with few close
rivals include interdependence i.e. they cannot act independently, profit maximization, ability to
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set price i.e. they are price setters rather than price takers, high entry and exit barriers, few
dominant players, products may be homogenous or differentiated, can retain long run profits and
non-price competition.
Challenges faced by the industry: Main challenges faced by the food and beverages industry
includes Climate change, Global economic downturn, Obesity and diet-related illnesses, food
safety and consumer trust and the evolving simplicity trends among the consumers.
PEPSICO – AN INTRODUCTION
PepsiCo Inc. is an American Multinational Corporation with its headquarters at Purchase, New
York, United States. It manufactures and distributes food and beverage products in more than 200
countries. It was formed in 1965 by Donald Kendall and Herman Lays in North Carolina, U.S with
the merger of Pepsi-Cola Company and Frito- Lay, Inc. Since then the company expanded from
Pepsi to a broader range of products. Among the expansions, the largest is the acquisition of
Tropicana in 1998 and the merger with Quaker Oats in 2001. PepsiCo has net revenues of more
than $65 billion. Now the company owns several brands and among them, 22 brands including
Pepsi, Lays, Gatorade generates more than $1 billion each in revenues.
As per the market research company, Information Resources, Inc. (IRI), PepsiCo owns nine of the
forty largest packaged good’s trademarks in US. The recipe for Pepsi was first developed by Caleb
Bradham in the 1890s. Food products include chips, cereals, pasta, flavored snacks, rice and dairy
based products and beverage products include carbonated soft drinks, sports drinks, juices, bottled
water and ready to drink tea and coffee. Indra Krishnamurthy Nooyi is the Chief Executive officer
of PepsiCo since 2006.
The global food and beverage leader employs around 2,74,000 people worldwide. PepsiCo’s
people have a commitment towards sustainable growth by investing in a healthier future for people
and our planet. They believe, it also means successful future of PepsiCo. This unique commitment
is called Performance with Purpose. PepsiCo promises to provide a wide range of food and
beverages, to find innovative ways to reduce its impact on the environment by reducing energy,
water and packaging volume, to provide great workplace to employees and to respect, support and
invest in the local communities where they operate. Primary competitor of the company in the
beverage market is Coca- Cola.
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HISTORY AND INCORPORATION
1898 - Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the
invention of Caleb Bradham, a pharmacist and drugstore owner in New Bern, North Carolina. He
began experimenting with combinations of spices, juices, and syrups trying to create a refreshing
new drink to serve his customers. Caleb Bradham’s creation, a unique mixture of kola nut extract,
vanilla and rare oils, became so popular his customers named it "Brad's Drink". Caleb decided to
rename it "Pepsi-Cola", and advertised his new soft drink. People responded, and sales of Pepsi-
Cola started to grow, convincing him that he should form a company to market the new beverage.
The new name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts.
It was first used on August 28.
1902 – Bradham launched the Pepsi-Cola Company in the back room of his pharmacy, and applied
to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it
exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed
to bottle Pepsi so that people could drink it anywhere.
1903 - The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered
with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line
"Exhilarating, Invigorating, Aids Digestion."
1905 - A new logo appears, the first change from the original created in 1898.He also began
awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in
1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by
1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.
Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola
bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy
foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company
was selling more than 100,000 gallons of syrup per year.
1906 - The logo is redesigned and a new slogan added: "The original pure food drink." The
trademark is registered in Canada.
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1909 - Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a
postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully
drink...refreshing, invigorating, a fine bracer before a race." The previous year, Pepsi had been one
of the first companies in the United States to switch from horse-drawn transport to motor vehicles,
and Caleb's business expertise captured widespread attention. He was even mentioned as a possible
candidate for Governor. The theme "Delicious and Healthful" appears, and will be used
intermittently over the next two decades.
1910- The first Pepsi-Cola bottler’s convention is held in New Born in North Carolina.
1920 - Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with
the slogan, "Drink Pepsi-Cola. It will satisfy you." Then after World War I, the cost of doing
business increased drastically. Sugar prices see sawed between record highs and disastrous lows,
and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles
just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted.
By 1921, only two plants remained open.
A successful candy manufacturer, Charles G. Guth, appeared on the scene assuring the future of
Pepsi-Cola. Guth was president of Loft Incorporated, a large chain of candy stores and soda
fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an
unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an
attractive drawing card to Loft's soda fountains. He was right. After five owners and 15
unprofitable years, Pepsi-Cola was once again a thriving national brand.
One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually administered
from a Baltimore building apparently owned by Coca-Cola, and named for its president. Within
two years, Pepsi could earn $1 million for its new owner. With the resurgence came new
confidence, a rarity in those days because the nation was in the early stages of a severe economic
decline that came to be known as the Great Depression.
1934- A land mark year for Pepsi-Cola, the drink is a hit and to attract even more sales, the
company begin selling it 12-ounce drink for five cents (the same cost as 6-ounce of competitive
colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost saving
proves irrespirable to depression-worn Americans and sales skyrocket nationally.
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1936- Pepsi grand’s 94 new US franchises and year-end profit reach $2100000.
1938- Water S Mack, Jr, V.P of phoenix Securities Corporation, president of the Pepsi-Cola
company considers advertising the key stone of the soft drink business, turns Pepsi into a modern
marketing company.
1939 - A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a
Nickel" to increase consumer awareness of Pepsi's value advantage.
1940- The pepsi-cola company made history when the first advertisement jingle was broadcast
nationally on the radio. The jingle was “nickel nickel” an advertisement for Pepsi-cola that referred
to the price of Pepsi and the quantity for that price “nickel nickel” became a hit record and was
recorded into 55 languages.
1941 - In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white
and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more
than a million families to record messages for armed services personnel overseas.
1942- One on many company sponsored effort to allow soldiers to communicate with friends or
family. This record was made in New York City. But often booths would be setup with mobile
recording equipment that was bought to where the soldiers were.
1943- Pepsi’s theme line becomes “Bigger drink, Better taste”.
1948- Corporate headquarters moves from Long Island City, New York to Midtown, Manhattan.
1950-Alfred N. Steele becomes president and CEO of Pepsi cola. Mr. Steele’s wife, Hollywood
movie star Joan Crawford, is instrumental in promoting the company’s product line. Pepsi receives
its new logo, which incorporates the “Bottle Cap” look. The new logo is the fifth in Pepsi history.
1953- “The Light refreshment” campaign capitalizes on a change in the products formula that
reduces caloric content.
1954 - "The Light Refreshment" evolves to incorporate "Refreshing without Filling."
1958 - Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as
a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with
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young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl"
bottle replaces Pepsi's earlier straight-sided bottle.
1959- Pepsi debuts at the Moscow fair. Soviet president Khrushchev and US vice president Nixon
share a Pepsi.
1961 - Pepsi further refines its target audience, recognizing the increasing importance of the
younger, post-war generation. "Now it’s Pepsi, for those who think Young" defines youth as a
state of mind as much as a chronological age, maintaining the brand's appeal to all market
segments.
1962- Pepsi receives its new logo, the sixth in Pepsi history. The “serrated” bottle cap logo debuts,
accompanying the brands ground breaking “Pepsi generation” ad campaign.
1963 - In one of the most significant demographic events in commercial history, the post-war baby
boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and
positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come alive!
You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified,
not so much by its attributes, as by its consumers' lifestyles and attitudes.
1964 - A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1965 - PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lay. Pepsi-Cola
was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc.
was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the
H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay, former chairman
and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M.
Kendall, former president and CEO of Pepsi-Cola, was president and chief executive officer.
1969 - "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation
advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with
“Live/Give," a new awareness and a reflection of contemporary events and mood become integral
parts of the advertising's texture.
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1970- Pepsi leads the way into metrics by introducing the industry’s first two litter bottles. Pepsi
is also first company to respond to consumer preference with light weight, recyclable, plastic
bottles. The Pepsi world headquarters moves from Manhattan to purchase, NY.
1974- First Pepsi plant opens in the USSR. Television ads introduce the new theme line, “hello,
sunshine, hello mountain dew.”
1976 - "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national
mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even
smaller dogs, becomes an instant commercial classic.
1978- The company experiment with new flavors. 12 pack cans are introduced.
1980- Pepsi becomes number one in sales in the take home market.
1981- PepsiCo and china reach government agreement to manufacture soft drinks, with production
beginning next year.
1982- Pepsi free, a caffeine-free cola is introduced nationwide. Pepsi challenge activity has
penetrated 755 of the US market.
1983- Mountain dew launches the “dew to it” theme.
1984 - A new generation has emerged-in the United States, around the world and in Pepsi
advertising, too. "Pepsi the Choice of a New Generation" announces the change, and the most
popular entertainer of the time, Michael Jackson, stars in the first two commercials of the new
campaign. The two spots quickly become "the most eagerly awaited advertising of all time."
1985- After responding to years of decline, coke loses to Pepsi in preference tests by reformulating.
However, the new formula is met with wide spread consumer rejection, forcing the reintroduction
of the original formulation as “Coca-Cola classic” the cold war takes “one giant sip for mankind,”
when a Pepsi ‘space can” is successfully tested abroad the space shuttle. By the end of 1985, the
new generation campaign earns more than 58 major advertising and film-related awards. Pepsi’s
campaign featuring Lionel Richie is the most remembered in the country, according to consumer
preference polls.
Page 15
1986 - 7up international is acquired in Canada. Pepsi-Cola acquires Mug Root Beer.
1987 - Pepsi-Cola world headquarters moves from purchase to Somers, New York. After a 27 year
absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign in Times
Square.
1988 - Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic"
commercial named "Chase." "Chase" airs during the Grammy Awards program and is immediately
hailed by the media as "the most-watched commercial in advertising history."
1989 – Pepsi lunges into the next decade by declaring Pepsi lovers “A Generation ahead”. Pepsi-
Cola introduces an exciting new flavor wild cherry Pepsi.
1990 - Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and
football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas
against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right
one baby."
1991 – Pepsi introduces first beverage bottles containing recycled polyethylene PET into the
market place. The development marks the first time recycled plastic is used in direct contact with
food in packaging.
1992 - Celebrities join consumers, declaring that they "Gotta have it." The interim campaign
supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s.
Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew whose
claim to fame is that, except for the unique great taste of Dew, they've "Been there, Done that,
Tried that."
1993 – Brand Pepsi introduces its slogan, “Be young. Have fun. Drink Pepsi.” Pepsi- Cola profit
surpass One billion dollar. Pepsi introduces an innovative 24 – can multi pack that satisfies
growing consumer demand for convenient large-size soft drink packaging. “The cube” is easier to
carry than the traditional 24pack and it fits in the refrigerator.
1994 - New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO
Craig Weather up explaining the relationship between freshness and superior taste to consumers.
Page 16
1995 - In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in
the year's national advertising championship.
1996-in February of this year, Pepsi makes history once again, by launching one of the most
ambitious entertainment sites on the World Wide Web. Pepsi world eventually surpasses all
expectations, and becomes one of the most landed and copied, sites in the new media, and firmly
establishing Pepsi’s presence on the internet.
1997- In the early part of the year, Pepsi pushes into a new era with the unveiling of the generation
next campaign. Generation next is about everything that is young and fresh; a celebration of the
creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at every
step of the way. PepsiCo announces that, effective October 6th, it will spin off its restaurant to
form triton globe restaurant, Inc. including pizza hut, taco bell &Kfc, and it will be the largest in
sales.
1998- Pepsi celebrates its 100th anniversary. PepsiCo chairman and CEO Roger A.Enrico denoted
his salary to provide scholarship for children of PepsiCo employees. Pepsi introduces Pepsi One-
the first one calorie drink without that diet taste. PepsiCo acquires Tropicana Products from
Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo. Frito-Lay becomes
the snack chip leader in South and Central America as it enters a joint venture with Empreseas
Polar SA of Venezuela.
1999 - Tropicana juices enter the India market for the first time.
2000 - PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage
Company, whose highly innovative SoBe brand has made it one of industry's most successful
companies.
2001 - PepsiCo merges with The Quaker Oats Company.
2002 -Quaker Oatmeal celebrates the 125th anniversary of the nation's number-one choice for a
nutritious, hot breakfast cereal.
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2003 - Pepsi-Cola launches Sierra Mist in the United States. Frito-Lay removed trans-fat from
nearly its entire snack chips portfolio, including Lay's potato chips, Tostitos tortilla chips and
Cheetos cheese flavored snacks. Pepsi-Cola trademark turns 100 years old.
2004 - PepsiCo publishes its first Corporate Citizenship report in the 2003 Annual Report.
2005 - PepsiCo celebrates its 40th anniversary.
2006 - Pepsi celebrates its participation in its 20th consecutive Super Bowl. IndraNooyi named
chief executive officer of PepsiCo. Pepsi acquires IZZE Beverage Company. PepsiCo announced
its intent to acquire Naked Juice Company and the New Zealand snack company Bluebird Foods.
PepsiCo completes the acquisition of Stacy's Pita Chip Co.
2007 - PepsiCo introduces Performance with Purpose, making it one of the first contemporary
companies to recognize the important interdependence between corporations and society. PepsiCo
and Pepsi Americas jointly acquire Sandora, a leading juice company in Ukraine.
2008 - PepsiCo announces plans to invest US $1 billion in China over the next four years as part
of the strategy to expand in emerging markets and broaden the portfolio of locally relevant
products.
2009 - PepsiCo and Calbee Foods Company announce a strategic alliance to make and sell a wide
range of food products in Japan. PepsiCo introduces the first climate-friendly vending machines
to the United States.
2010 - PepsiCo completed the acquisition of The Pepsi Bottling Group, Inc. and PepsiAmericas,
Inc., its two largest anchor bottlers. PepsiCo announces its intent to acquire Russia's Wimm-Bill-
Dann, Russia's leading branded food-and-beverage company. AMP Energy Juice launches across
the United States.
2011 - PepsiCo and Tingyi Holding, one of the major food and beverage companies in China,
announce an agreement to form a strategic alliance in China. PepsiCo acquires Mabel, a leading
producer of cookies, crackers and snacks in Brazil.
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2012 - Diet Mountain Dew, Brisk and Starbucks ready-to-drink beverages join PepsiCo's portfolio
of billion-dollar brands, bringing the total to 22. Pepsi launches reduced-calorie cola innovation
Pepsi Next.
2013 - Müller Quaker Dairy, a joint venture between PepsiCo and The Müller Group, open a new
state-of-the-art yogurt manufacturing facility in Batavia, New York.
As per the latest news new non-cola beverage sweetened with stevia and sugar will be launching
in US this year. While cola products combining stevia and sugar will be tested in the other markets.
PEPSICO INDIA
PepsiCo entered India in 1989 and in a short period, has grown into one of the largest food and
beverage businesses in the country. PepsiCo growth in India has been guided by its global vision
of “Performance with Purpose”. This means that while businesses maximize shareholder value,
they have a responsibility to all the stakeholders, including the communities in which they operate,
the consumers they serve and the environment whose resources they use.
PepsiCo India has two types of operation namely:
1. Company owned Bottling Operation (COBO):
PepsiCo India sets up own bottling units (factories). The company also does marketing of the
beverage. There are 4 such units in India. They are Karnataka & Kerala, Tamil Nadu, Mumbai and
AndraPradhesh&Telugana.
2. Franchisee owned Bottling operation (FOBO):
Where PepsiCo authorized bottling units manufacture and market the Pepsi brands in certain
agreed area.
The group has built an expansive beverage and foods business. To support its operations, PepsiCo
has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In
addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants.
Large investor and one of the largest food & beverage businesses in India: One of the largest
US multinational investors in the country, PepsiCo has been consistently investing in India and
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has built an expansive beverage and snack food business supported by 38 beverage plants and 3
food plants. PepsiCo and its partners recently announced an additional targeted investment of Rs.
33,000 Crore in India by 2020 in the areas of product innovation, increasing manufacturing
capacity, ramping up market infrastructure, strengthening supply chain and expanding company’s
agriculture programme.
A growing portfolio of enjoyable and wholesome snacks and beverages: PepsiCo India’s
portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthier
products. The portfolio includes several healthier treats like Quaker Oats, Tropicana juices,
Tropicana fruit powders, rehydrator Gatorade, Tata Water plus, Lay’s baked range, Quaker
flavoured oats and Quaker NutriUpma&NutriPoha breakfast range with the power of wholegrain.
Model partnership with over 24,000 farmers: PepsiCo India has pioneered and established a
model of partnership with farmers and now works with over 24,000 happy farmers across nine
states. PepsiCo provides quality seeds, extension services, disease control packages, bank loans,
weather insurance, and the latest technological practices.
Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone,
by becoming the first business to achieve ‘Positive Water Balance’ in the beverage world, and has
been Water Positive since then. This fact has been independently assured by Deloitte Touché
Tohmatsu India Pvt. Ltd. In 2012, PepsiCo India saved 8.2 billion liters more that it consumed in
its manufacturing operations. The company made this possible through innovative irrigation
practices like direct seeding, community water recharging initiatives, and by reducing the
consumption of water in its manufacturing facilities.
Care for the environment: PepsiCo India is now focused on reducing its carbon footprint. More
than 40 per cent of its energy is today generated from renewable sources such as bio mass & rice
husk boilers and wind turbines. PepsiCo in partnership with the NGO Exnora and local
municipalities has also been working on a unique waste collection and treatment program called
‘Waste-to-Wealth’.
Exemplary employment practices: PepsiCo India provides direct and indirect employment to
almost 2,00,000 people. The company believes in providing employment and growth opportunities
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to local talent. Its ‘College of Leadership’, ensures early identification of talent, and employees’
focused development through critical experiences.
Infrastructure facility: PepsiCo has a very good canteen service for its employees where they are
served with good and nutritious food and drinks. It maintains a very good communication system
internally and externally as it is facilitated or equipped with telephones, computers and the internet
services. The PepsiCo offices are being redesigned according to the modern requirement with
cabinets, office furniture's, systems, fans, air conditions, stationeries, etc. PepsiCo is having
pleasant ambience in its entire unit and in head office. It is being equipped with all kind of modern
facilities that are required.
PEPSICO’S MISSION
Our mission is to be the world's premier consumer products’ company focused on convenient foods
and beverages. We seek to produce financial rewards to investors even 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.
PEPSICO’S VISION
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate –
environmental, social, economic – creating a better tomorrow than today.
Our vision is put into action through programmes and a focus on environmental stewardship,
activities to benefit society and a commitment to build shareholder value by making PepsiCo a
truly sustainable company.
Performance with Purpose
At PepsiCo, we're committed to achieving business and financial success while leaving a positive
imprint on society – delivering what we call Performance with Purpose.
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Our approach to superior financial performance is straightforward – drive shareholder value. By
addressing social and environmental issues, we also deliver on our purpose agenda, which consists
of human, environmental, and talent sustainability.
QUALITY POLICY
1) The best delivery.
2) The best product in the market place.
3) The highest quality.
4) The best testing.
CORPORATE OFFICE
PepsiCo India Holdings Private Limited,
2nd
Floor, Tower A, Global Business Park, M.G. Road,
Sikenderpur, Gurgaon, Haryana, 122002
HEAD OFFICE
PepsiCo India comes under AMEA (Asia, Middle East, and Africa) region.
PepsiCo India Holdings Private Limited,
3B, DLF Corporate Park, 'S' Block, Qutab Enclave,
Phase-III, Gurgaon – 122002, Haryana, India
Tel: 91-124-2880699
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4 UNITS IN INDIA
1) Karnataka & Kerala
2) Tamil Nadu
3) Mumbai
4) AndraPradhesh&Telugana
FINANCIAL STATEMENT OF PEPSICO INC, AND SUBSIDARIES
2014 Financial Highlights:
53%
47%
Mix of Net Revenue
Food Beverage
32%
22%
20%
12%
10%
4%
Net Revenues
PepsiCo Americas Beverages Frito-Lay North America PepsiCo Europe
Latin America Foods PepsiCo AMEA Quaker Foods North America
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Summary of Operations 2014 2013 %change
Net revenue $66,683 $66,415 –%
Core total operating profit $10,313 $10,061 2.5%
Core earnings per share attributable to PepsiCo $ 4.63 $ 4.37 6%
Free cash flow, excluding certain items $ 8,259 $ 8,162 1%
Capital spending $ 2,859 $ 2,795 2%
Common share repurchases $ 5,012 $ 3,001 67%
Dividends paid $ 3,730 $ 3,434 9%
(in millions except per share data; all per share amounts assume dilution)
PEPSICO’S BUSINESS MODEL
Diversified business model: PepsiCo Inc. (PEP) has a diversified business model with a strong
presence in food and beverage products. In a scenario where carbonated soft drinks have been
continually declining, PepsiCo’s significant presence in the snack food category gives it an edge
over its closest rival, The Coca-Cola Company (KO), which is heavily dependent on sparkling or
carbonated beverages. In 2014, PepsiCo’s food business accounted for 52% and its beverage
business accounted for 48% of the company’s $66.4 billion revenues.
Complementary products: PepsiCo benefits from its presence in two complementary categories:
food and beverages. There is a high coincidence of purchase between these two categories.
According to Information Resources, Inc. (or IRI), a market research company, 54% of US
consumers who buy salty snacks also buy a beverage in the same basket. For instance, PepsiCo
states that when Frito-Lay snacks are merchandised along with Pepsi carbonated soft drinks (or
CSDs), it results in higher sales.
Leveraging category strength: The presence of one category of business in a region makes
PepsiCo’s entry easier into the complementary category. For instance, PepsiCo is able to leverage
its beverage business in emerging markets to develop its snacks business.
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Competitors have a similar business model: PepsiCo’s peers Kraft Foods Group Inc. (KRFT)
and Mondelez International, Inc. (MDLZ) also have a presence in the food and beverage
categories. In 2013, Kraft Foods derived 10% of its $18.2 billion in revenue from refreshment
beverages and food. That year, MondelezInternational derived about 17% of its $35.3 billion of
revenue from beverages and snack food. The companies mentioned above are part of the consumer
staples sector.
PEPSICO’S THREE-CHANNEL DISTRIBUTION NETWORK
PepsiCo Inc. (PEP) is a leading food and beverage company with an impressive global presence.
The company’s products reach the market through the following three channels: direct store
delivery (or DSD), customer warehouse, and third-party distributor networks. PepsiCo chooses the
relevant distribution channel based on customer needs, product characteristics, and local trade
practices.
Direct store delivery: Under the DSD system, PepsiCo delivers products directly to retail stores.
Of the three channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more
suitable for products that are restocked often and are sensitive to promotions and marketing.
Customer warehouse: The customer warehouse system is a less expensive distribution channel.
It’s ideal for products that are less fragile and perishable, have lower turnover, and are not
purchased impulsively.
Third-party distributor networks: PepsiCo distributes food and beverage products to
restaurants, businesses, schools, and stadiums through third-party food service and vending
distributors and operators.
There are two types of sales. Primary sales and Secondary sales. Both primary and secondary sales
are important for the company. Primary sales happen between the manufacturer and the distributor.
That is, from the company, products are made available to the distributors. The products are taken
from the factory at Nelamangala, Bangalore.
PepsiCo India Holdings Pvt Ltd (Factory), 34 Km Stone, National Highway,
TeppadaBegur, Nelamangala, Bangalore – 562123.
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In order to decide on the distribution point location, company will look into certain factors like
 How many outlets are there in and around that region?
 No. of vehicles required?
 Manpower required?
 Stocks needed?
After deciding on such factors, a distribution point will be selected. For each distribution point
there will be one CE and 2-3 PSRs depending on the requirement.
Secondary sales happen between distributors and retailers. It means generating sales from market.
PSRs are responsible for generating orders. They go to different outlets in the region, speak with
the customers, convince them and get the orders. They are considered as the key people as they
are the frontline employees who have direct contact with the customers (retailers). They only know
the pulse of the market. PSRs have a vital role in maintaining route, increasing Pepsi share,
increasing cooler effectiveness etc. In order to decide on the sales promotion activities, their
contribution is very important. Some customers ask for additional benefits or they’ll ask why you
are not providing the benefits which the other company (competitor) provides. Likewise, PSRs can
understand customer expectations and what the competition is doing, which can be used by the
company to decide on promotional activities.
Depending on the orders, vehicles and manpower will be decided for the distribution purpose.
Manpower includes loaders, drivers and collection/ delivery agents. There are two kinds of loaders.
Primary loaders are responsible for unloading company stocks at the distribution point and
secondary/ route loaders are responsible for unloading stocks at the outlets. Collection or delivery
agents are responsible for delivering the stocks at the outlets and collecting cash. Most of the times
a single person will be the driver and delivery agent in order to reduce the cost.
Visi Coolers and signage’s are provided to the outlets. Visi coolers are given only to those outlets
with 365 day business. Some outlets will be opened during summer and they will ask for coolers.
It will not be provided to such small outlets. In order have these coolers; the retailers should sign
an agreement with the company stating that they’ll keep the coolers for these many years. For
getting the coolers, there are some conditions to be followed.
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Coolers are in different sizes. For every 100 liters of cooler, the retailer should buy at least 3 cases
of glass bottles and 6 cases of any other stocks initially in order to have cooler. Retailers are not
supposed to keep the competitor products in Pepsi’s visi coolers. But, whether they follow this or
not depends on the relationship they have with the company staff. Some PSRs become successful
in making them do so. But some are not.
ORGANIZATIONAL STRUCTURE
Organizational Hierarchy of PepsiCo India Holding Private Ltd.: The head office of PepsiCo
India is situated in Gurgaon, Haryana. In PepsiCo Bangalore there is only sales department with
HR and marketing being the support system.90 % of employees in Karnataka Kerala region come
under sales department. The rest 10 % include Human resource, marketing and IT.
For every region (For example, Karnataka, Kerala etc.), there is a unit manager under whom there
are many Territory Development Managers (TDM). Karnataka is divided into different territories
and TDMs are responsible for sales in their particular territory. There are many Customer
Executives (CE) under each TDM. The next level includes the frontline employees called Pre
Sales Representatives (PSR).
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UM-Unit Manager: In charge of day to day operations and supervisions of all the functions within
the unit including operations, logistics, sales and distribution and marketing. The unit manger
reports to the CEO India at Gurgaon.
TDM- Territory Development Manager: TDM is the in charge of the sales and distribution
network of particular territory within a zone. Responsible for the daily, monthly and annual sales
within the territory decides the daily schemes for products and incentives for salespersons'. He is
also responsible for cost effectiveness, profit generation and profit maximization within the
territory.
MDM-Marketing Development Manager: MDM is the responsible for all the marketing
activities and their effectiveness within the territory. Decide the format and time frame of the
marketing and the promotional activities and the incentives given to the retailers.
SDM- Sales Development Manager: He is responsible for maintaining cooler purity i.e. to ensure
that the Pepsi coolers consist of their products only. Coolers should also be 100% charged.
ASM-Area Sales Manager: Reports to the TDM. He is directly responsible for any issues in the
area and is supposed to ensure the smooth functioning of the entire sales and distribution network
in the area. ASM is responsible for timely disposable of any issue faced by the retailers. He decides
and approves the boards, displays and hoardings in the area.
SM- Sales manager
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 outside agencies for displays, boards, checks
conducted in the market. He is also responsible to keep a check on the expenditure of the marketing
activities in the market.
BDM- Business Development Manger
BDC- Business Development Coordinator
Customer executives come under every TDMs, ASMs and MDCs. Each distributor point will have
one CE and PSRs (Pepsi sales representatives) under him.
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CE-Customer Executive: He is supposed to report to the ADC and in charge of salespersons. He
is required to visit the market and accompany every salesperson as frequently as possible. He is
the first person to get the information about the market / area and is the first contact if the
salesperson or retailers face issue and responsible for assigning and achieving daily sales target
given to the salespersons.
ME-Marketing Executive: Reports to the MDC and is responsible for daily functioning of the
marketing activities in the including awareness of promotions in the market and the response in
the market.
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 the new scheme launched. They are also
required to push for the sale of new product launched in the market and make sure that the retailers
are following the company guidelines regarding the launch and the maintenance of visi coolers.
They report to the CE.
Marketing Assistant: 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 retailers are following the guidelines of
the company regarding promotional displays, other displays and displays in the visicoolers. They
report to the ME.
Recruitment Sources:
1. Internal reference-20%
2. Internal job posting-30%
3. Naukri-10%
4. Consultance-40%
Training Process: For all fresher’s, the HR team arrange a 15 days training programme. They call
it as 15 days baby care programme. They send the fresher’s to the market for 15 days with a CE
(buddy). After learning the market, fresher’s have 3 days of training session. For all CEs & sales
managers, now Pepsi implemented a 4DX programme (4 discipline execution program).
Performance appraisal: Performance management program.
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1. Objectives (should be smart)
2. Managerial rating
3. Calibration
4. Focal pointing
Industrial Relations: The Company has a very cordial atmosphere. It is mainly a people Focus
Company than engineering or technical oriented. It is informal during approach and formal during
results. The management and union have joined hands for the achievement of organizational
objectives.
Leave system:
 Personal leaves- Unlimited
 Sick leaves- 30 days
 Maternity leave- 6 months
 Sabbatical- If he complete 3 years, he can take leave for 6 months to 1 year. No salary.
 Annual leaves- 26 days
Motivation: Every unit has their own sales driven tactics, engagement calendar-celebrating days,
rewards and recognition. So it will vary from units to units. Newsletter every week congratulating
5 top performing customer executives, contests, incentives, meeting coffee with Unit Manager,
Team outing, cricket match, family day etc… are some of the other usual activities.
PRODUCT OR SERVICE PROFILE
PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joyas
well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic
refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options
such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,
isotonicsports drinks - Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars,
Tropicana Twister and Slice. Local brands – Lehar Evervess Soda and Mangola add to the diverse
range of brands.
PepsiCo’s foods company, Frito-Lay is the leader in the branded salty snack market and all Frito-
Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded
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snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The company’s
high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the
healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chip
sand Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its
products contain voluntary nutritional labeling on their packets.
PepsiCo offers products to over 200 countries and territories, and their Global Brands are their
biggest sellers. There are 22flagship food and beverages brands for PepsiCo and there are three
categories of products. They are
1. Good for You: At PepsiCo, Good for You means just those nutritious products that include
fruits, vegetables, whole grains, low-fat dairy, nuts, seeds and key nutrients, with limits on
sodium, sugar and saturated fat that meet global dietary requirements. These are the foods
and beverages that fuel our body, our performance and our lifestyle.
2. Better for You: Indulging yourself doesn't mean feeling guilty. Better for you brands offer
snacks baked with lower fat content, snacks with whole grains, and beverages with fewer
or zero calories and less added sugar.
PepsiCo’s carbonated beverages: PepsiCo has a strong carbonated beverage portfolio that
includes its leading brand, Pepsi-Cola, and other brands such as Mountain Dew and Miranda.
PepsiCo and Coca-Cola together hold about a 70% share of the US carbonated soft drink (or
CSD) volumes.
Noncarbonated beverages: PepsiCo’s noncarbonated beverage portfolio includes leading brands
such as Tropicana in the juice category and Aquafina in the bottled water category. The company’s
Naked Juice brand comprises premium juices and protein smoothies. The company also sells
ready-to-drink teas such as Lipton and coffee products through joint ventures with Unilever and
Starbucks. In the fast-growing sports and energy drinks category, the company owns the popular
Gatorade brand.
Because of continually declining carbonated sales volumes and rising health awareness, PepsiCo
is looking to expand into healthier beverages. PepsiCo’s Tropicana brand launched three new
flavors of Farm stand 100% juice, which is made of one serving of fruit and one serving of
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vegetables per 8 ounces. PepsiCo’s Naked Juice introduced the Chia Sweet Peach and Chia Cherry
Lime flavors, which include chia seeds that are rich in omega-3 oils, antioxidants, protein, and
fiber. Naked Juice also introduced the Kale Blazer with green vegetables.
Food section also consists of many categories of products.
Snack foods: PepsiCo’s Frito-Lay unit manufactures some of the most popular snacks, including
Lay’s potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips
and branded dips, Ruffles potato chips, Fritos corn chips, and Santitas tortilla chips. Frito-Lay
North America’s joint venture with Strauss Group manufactures Sabra refrigerated dips and
spreads.
Health food: In 2001, PepsiCo merged with The Quaker Oats Company. Today, the company’s
food offerings comprise ready-to-eat cereals, rice, pasta, dairy, and other products. Key brands
include Quaker oatmeal, Quaker Chewy Granola Bars, Cap’n Crunch cereal, Life cereal, and Rice-
A-Roni side dishes.
With consumers shifting to healthier foods, PepsiCo is focused on developing new products with
lower sodium and fat levels. The company is also using new technologies such as air popping to
bring out lower-fat products. In air popping, the snacks are heated and pressurized until they pop.
Since 2013, the company has introduced the following three air-popped potato chip products:
Walkers Pops in the United Kingdom, Smith’s Popped in Australia, and Lay’s Air Pops in the
United States. These air-popped chips contain half the fat of regular potato chips.
PepsiCo’s nutrition portfolio: PepsiCo Inc.’s (PEP) nutrition business has been growing
significantly over the past few years. In 2013, the company’s nutrition business represented about
20% of PepsiCo’s net revenue. PepsiCo has the following four core nutrition brands:
 Quaker
 Tropicana
 Gatorade
 Naked Juice
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PepsiCo is expanding its portfolio of nutritional products and looking for entry into new product
categories such as dairy, hummus and other fresh dips, and baked grain snacks.
Healthier variants: PepsiCo is also working to improve the health quotient of its existing snacks
and beverage products. The company aims to reduce the average amount of saturated fats per
serving in key global food brands by 15% by 2020 and reduce the average amount of sodium per
serving in food products by 25% by 2020, compared to 2006 levels.
In the beverage category, PepsiCo added many new low- and zero-calorie variants. For instance,
PepsiCo Mexico reduced sugar in Miranda by 25% per serving in 2013.In September 2014, the
three major soft drink makers, The Coca-Cola Company (KO), PepsiCo, and Dr Pepper Snapple
Group, Inc. (DPS), pledged to reduce calorie consumption in sugary drinks in the United States by
20% by 2025.
The industry leaders plan to achieve this goal through packaging changes, reducing serving sizes,
expanding low- and no-calorie drinks products, and using its marketing skills to educate customers.
PepsiCo is also acquiring or entering into alliances with companies that own healthy products. For
instance, in 2011, PepsiCo acquired Wimm Bill Dan Foods, a leading Russian company in the
dairy category.
Beverage products offered by PepsiCo India Holdings Pvt. Ltd. Bangalore:
1. Carbonated soft drinks: Pepsi, Mirinda, 7up, Mountain Dew.
2. Non-Carbonated fruit based drinks: Slice, Tropicana twister Orange/apple taste.
3. 100% fruit Juices: Tropicana 100% fruit juice.
4. Packaged drinking water: Aquafina.
5. Soda drinks: Lehar Evervess Soda.
CUSTOMERS OF PEPSICO
PepsiCo’s customers include authorized bottlers and independent distributors, including
foodservice distributors and retailers. PepsiCo normally grants its bottlers exclusive contracts to
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sell and manufacture certain beverage products bearing its trademarks within a specific geographic
area. These arrangements provide PepsiCo with the right to charge its bottlers for concentrate,
finished goods and Aquafina royalties and specify the manufacturing process required for the
product quality.
Since PepsiCo does not sell directly to the end consumer it relies on and provides financial
incentives to its customers to assist in the distribution and promotion of its products. For its
independent distributors and retailers, these incentives include volume based rebates, these
incentives are referred to as bottler funding and are negotiated annually with each bottler to support
a variety of trade and consumer programmes, such as consumer incentives, advertising support,
new product support and vending and cooler equipment placement.
Retail consolidation and the current economic environment continue to increase the importance of
major customers like restaurants, shopping malls like Reliance fresh, More, etc.
COMPETITORS INFORMATION
PepsiCo competes with global, regional, and private companies across the food and non-alcoholic
beverage space. In the food industry, the company’s rivals include ConAgra Foods, Inc. (CAG),
Kellogg Company (K), Kraft Foods Group Inc.
(KRFT), Mondelez International, Inc. (MDLZ),
Snyder’s-Lance, Inc. (LNCE), and Nestlé S.A.
(NSRGY).
In the non-alcoholic beverage industry, the Coca-Cola
Company (KO) is PepsiCo’s closest rival. Other peers
in the beverage industry include Dr Pepper Snapple
Group, Inc. (DPS), Cott Corporation (COT), Red Bull
GmbH, and Monster Beverage Corporation (MNST).
Coca-Cola: In competition to Pepsi Company, Coco-
Cola is the only major organized company which is
providing toughest competition in terms of variety of
products, quality of products and market share in the
industry. Coco-Cola has 39 bottling plants in India
PepsiCo. Brands Coca-Cola Brands
Pepsi Coke
7-up Thumps up
Mountain Dew Sprite
7up Ice Citra
Mirinda Orange Fanta
Mirinda Lemon Limca
Slice Maaza
Aquafina (water) Kinley(water)
Lehar Soda Kinley(soda)
Diet Pepsi Diet Coke
Duke Soda
Tin
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which manufactures seven brands of the company and the different brands of Coca-Cola are Coke,
Thumps Up, Maaza, Fanta, Limca, Sprite and Kinley Soda.
Coco-Cola Company re-entered India in the year 1993 and in order to gain market share the
company acquired various top selling brands in the Indian market like Maaza, Limca, Citra, Gold
spot etc. from Parle India Pvt. Ltd. and Thumps up from a local company. The major competitor
of PepsiCo is Coca-Cola along with local/unorganized sector.
FUNCTIONAL DEPARTMENTS
There are 5 main functional departments in PepsiCo.
 Marketing Department
 Finance and account Department
 Purchase & sales Department
 Service Department
 Personnel Department
Marketing Department: This department is responsible for all marketing aspects of retail
operation. They are the one who are mostly into all with the current and prospective customers.
This department is headed by general manager who is assisted by 2 assistant managers who are in
charge of field sales and other corporate sales. They are further assisted by a team of field sales
executive, and sales executive.
Finance and Accounts Department: This department is responsible for preparation of all account
financial aspects of the dealership and retail operations. This department is under General Manager
who is assisted by a finance manager. Accountants, a cashier, and an EDP/Records officer again
assist the finance manager.
Purchase & Sales Department: Purchase department takes care of total purchase thorough
respective heads to the purchase department. Organization structure of sales department is as
shown.
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 TDM (territory development manager)
 CE (Customer Executive)
 PSR (Pre Sales representatives)
The number of Customer Executives (CEs) and PSRs depends on the size and structure of territory.
Services Department: This department is chained with the responsibility of maintaining service
standards. They have to maintain customer satisfaction and after sales service, a long relationship
with the customer. It is again headed by General Manager, who is further assisted by the manager
in charge of sales and services. Here the main objective is to satisfy the customer. In each and
every department this service department plays a major role.
Personnel Department: Personnel management department is responsible for offering service
and coordination of the different activities of various departments. It is again headed by the General
Manager who is assisted by an office manager. It also includes an office secretary, a receptionist,
stenographers and housekeeping assistants. The information flows from the higher superiority to
the lower subordinate.
Objectives of Personnel Department: Growth and satisfaction of the employees of the organization,
maintain an organization climate conducive to human growth, satisfaction and contribution and to
Unit
Manager
TDM
CE CE
PSR PSR
TDM
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create an environment for team work, and involvement of all personnel for achieving the
company’s objectives.
FUTURE GROWTH AND PROSPECTS
PepsiCo announced that its targeted investment is of Rs. 33000 cores in India by 2020.Hence this
investment will further strengthen PepsiCo’s position as one of India’s leading food and beverage
companies. Strategic imitative will fund investments in innovation manufacturing, selling and go-
to-market infrastructure and agriculture.
Innovation: PepsiCo will continue to expand the range of foods and beverages in its portfolio to
cater to the wide and evolving needs of Indian consumers. PepsiCo has a long history of
successfully innovating for the Indian market, and PepsiCo India already has organically built
eight brands that generate Rs. 1,000 crores or more in estimated annual retail sales (Pepsi, Lay's,
Kurkure, 7UP, Slice, Mirinda, Mountain Dew and Aquafina).
Manufacturing: PepsiCo plans to significantly increase manufacturing capacity to meet the
growing demand for its foods and beverages. PepsiCo and its partners plan to expand their
production capacity in India to more than double current levels by 2020.
Infrastructure: PepsiCo and its partners plan to ramp up selling and delivery infrastructure
throughout the country, with a particular focus on rural market expansion. As part of this strategic
initiative, PepsiCo will work with its partners to deploy new technologies designed to enhance
service to retail customers and increase efficiency across go-to-market systems.
Agriculture: Resources will be allocated to expand PepsiCo's well-known collaborative farming
program, which provides farmers with access to good quality seeds, technical agronomic expertise,
bank loans and crop insurance. This program currently reaches 24,000 farmers, positively
impacting their income and social standing in addition to strengthening the reliability and quality
of PepsiCo's supply chain.
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PepsiCo Chairman and Chief Executive Officer IndraNooyi said: "Most importantly, our
investments will be aligned with India's interests," Nooyi added. "We will be guided by
Performance with Purpose, PepsiCo's vision for building a profitable and sustainable 21st century
corporation that is a good investment for our shareholders, a good environment for our employees,
a good citizen in our communities and a good steward of our planet's resources. We believe
Performance with Purpose will drive sustained value for PepsiCo and positively contribute
to India's development well into the future."
SWOT ANALYSIS OF PEPSICO
Strengths:
 One of the most popular and globally recognized brands in food and beverage industry.
 Have popular subsidiary brands like Lays, Gatorade, Pepsi, Quaker, Tropicana etc.
 2nd in the world as leading distributor of carbonated drink.
 PepsiCo’s cold drink brands are famous among youngsters. The youngsters are aware of
most of the PepsiCo brands in the market.
 Relationship with the local community is an added advantage, as they look into the
development for their people as stated in their mission.
 The company has established good bargaining power with the retailers by supplying
necessary cooling equipment’s thus locking them in as exclusive outlets.
 Invest more in research and development for more affordable and nutritional products.
 Reduced use of water by recycling & purification system. They reuse 75% of water used
in production. The company made this possible through innovative irrigation practices like
direct seeding, community water recharging initiatives, and by reducing the consumption
of water in its manufacturing facilities.
 Offers extensive variety of product lines.
 Different flavors were created that tailors to the country they are sold in. The company
finds out the taste that the Indians are fond of and introduces a new taste for the fulfillment
of their existing need.
 High level of customer loyalty for most of the brands within product portfolio.
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 CSR activities through PepsiCo Foundation, which works in the sector of education, health,
water conservation etc.
 Towards product reformulation – reduce salt, eliminate trans-fat which diminish calories.
 Strong marketing strategies like using famous celebrities. Eg- Tiger Wood
Weaknesses:
 Supply chain inefficiencies that affect retailers, were solved too slow i.e. there happens
delay in delivery of stock to retailers.
 Market share was low in the soft drink industry and continued to decline.
 Lower sales of non-carbonated beverages outside North America.
 Strong competition in the aerated drinks segment from Coca-Cola leads to high brand
switching.
 High level of dependence on large supermarkets such as Wal-Mart.
 Aquafina tap water scandal.
 Tropicana kids orange juice product recall.
 The company lags behind its competitor Coca Cola in taste and providing credit to retailers,
which has made them, lose out significantly in certain regions.
 The sale is dependent inversely on monsoons.
 There is no proper visibility in market for consumer awareness of each product of PepsiCo.
 Lack of schemes for retailer and consumer in comparison to Coca Cola.
 Delay in replacement of damaged bottles makes the retailers change their stocking decision
of PepsiCo products.
Opportunities:
 The acquisition of anchor bottlers in North America and Europe, enable them to drive
growth, dynamic future and more integrated supply chain.
 Consumers are leaning towards healthier foods. With the use of more healthy supplements
PepsiCo can address the issues related to health concern.
 With the use of technologies of recycling water, PepsiCo can start planning its operations
in African continent.
 Demand for products are high as they were well recognized.
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 Expand further into the international market. The opportunity for growth in developed
countries is greater as per capita consumption is high.
 Increasing presences in the emerging markets in developing countries such as China and
India.
 Consistent growth.
 Further research in innovations to make better-for-you snacks, and to produce sweeteners
that would lower the calorie content in drinks.
 To improve its brand image by involving in more CSR activities to benefit the local
communities.
 The untapped rural markets have a vast potential for smaller volume soft drink packs which
currently contribute only 15% of company sales.
 There is a huge opportunity for increasing the market sales of packaged drinking water
Aquafina; fruit based juice Tropicana, Tropicana twister and other variants of Tropicana.
 There is an opportunity to increase the sales of tetra-packs of slice.
 Main sponsor of the Indian Premier League.
Threats:
 Declining interest in some products such as the carbonated beverages as the public is
moving towards healthier choices.
 Health consciousness amongst people can take a toll on its aerated drinks and snacks food
markets.
 New products are constantly entering the market that competes directly with the Pepsi
products. Many of these products offer same benefit but lower price.
 Constant competition with Coca cola and other brands pose a threat to their sales and
market share.
 Compliance with different government regulations and norms in different countries.
 Inflation, economic slowdown and instability causes decline in the purchasing power of
consumers.
 High amount of sugar or salt in products being criticized by government and non-
governmental health organizations.
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 Water scarcity.
 Public backlash as a result of accusations about groundwater over utilization and high
pesticide levels in soft drink products.
 Change in consumer tastes.
 Less visibility may change the people thought for consuming the PepsiCo product as such
products comes with impulse purchases.
 Lack of distribution channel effectiveness will hamper the sales of PepsiCo products in the
market.
 The competition from established brands like Bisleri, Kinley, Royal Challenge, Bagpiper,
Himalaya, Kingfisher and local brands like Bailey, Oxyrich etc. These brands are very stiff
in packaged drinking water segment. They are a big threat to Aquafina as they offer large
margin of profit per bottle to the retailers.
 Local drinks (fruit based, milk based etc.) and drinks from Parley Agro (Frooti and
AppyFizz), Dabur (Dabur Real fruit juices) and Amul’s milk based products are also big
threat for fruit based brands like Slice and Tropicana of PepsiCo.
Innovation is the bedrock of things that PepsiCo drives in HR: Innovation is at PepsiCo’s
heart and it is an integral part of its product portfolio. In India region it has beverage
innovations for local tastes like Pepsi Atom, Tropicana coconut blends and snacks like Kurkure
range and Quaker NutriPoha&NutriUpma.
In terms of people practices, while it emphasize on innovations, it also gives equal focus and
importance to adoption of best practices across geographies. For example, its HR core
processes in India has become best practices now. PepsiCo globally gives a lot of emphasis on
manager quality and the institutionalization of Manager Quality Performance Index (MQPI) in
India is a best practice that is now being replicated globally. Similarly its initiative- ‘ICARE’
(Include, Coach, Appreciate, Respect, and Empathize) is now a best practice that has the
potential of being adopted within the PepsiCo global system. The underlying belief is that by
exhibiting ICARE behaviors, a manager will be able to inspire team members to deliver bigger,
better and faster results.
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Keeping true to its philosophy of attracting best talents, it has implemented an IT-enabled
world class recruitment management system. This system is a one-stop shop for the entire
candidate management experience, includeg linkage to job portals and agency portals.
Therefore, innovation lies in most of the things that we drive in HR. Being a global HR team,
it believes in best practice sharing and it has Talent Sustainability Teams where HR employees
across sectors work for various projects.
It has observed trends in learning process of employees and have made huge progress in
creating online training process under the global umbrella of PepsiCo University. It has
functional and leadership cites across the functional domains and can match any international
curriculum.
Leadership at PepsiCo: PepsiCo globally follows a robust leadership and individual
effectiveness model that works as a beacon for all its leadership development interventions in
terms of key competencies and associated behaviors, which are espoused by all its associates
to meet its performance goals. It is designed to reinforce its inclusive and value-based culture
and its focus on excellence and results.
Important pillars and imperatives on which leadership is built upon are individual’s ability to
“Set the agenda”, “Take others along” and “Do things in the right way”. Its holistic approach
towards leadership and career progression is governed by demonstration of results, functional
excellence, leadership capability and knowing the business and gaining relevant critical
experiences. PepsiCo India has over a period of time built a very strong pipeline by giving
people a mix of different critical experiences within PepsiCo India and internationally and
continues to do so.
Accelerated leadership development programs customized for the regions are the medium
practiced by us to develop and groom internal leaders at all levels. These development
programs, known as academies, are created and conceptualized with the help of top
management Institutes and consultants to ensure best in class learning.
With regard to other learning and development opportunities, it is working towards integrating
its learning processes globally and provide employees with high-end development
opportunities in line with the business realities. These programs shall be aimed at honing up
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employees skills that will set them up for future success. Focus would be to develop leaders
and employees at large in areas of digital skills, agile thinking and skills to operate in global
environment.
Unique talent market in AMEA: Asia, Middle East & Africa (AMEA), the sector that India
is a part of, is represented by the most diverse set of markets in the world. India is a great
crucible to learn and develop cross cultural thinking since each region is like a different country
with its own language, cultural identity, food and habits. With a median age of 28, the country
offers immense opportunities for young Gen Y graduates. While the need for education has
emerged as one of the key drivers of this growth, there is a huge skill gap that needs to be
bridged for India to fully leverage the power of its unique demographic dividend.
PepsiCo currently leverages several agencies working in line with government policies to
mobilize talent at the grassroots and make them ready. Project Funnel is its program at India
region to proactively bridge the potential talent gap at front line.
Unified face of HR: It is a one PepsiCo HR team for the company. In today’s virtual world,
distances are not that much of a concern. Its BIS (Business Information Service) team has
worked significantly to enable regions and offices integrated through tele presence meeting
rooms, web casts and other virtual medium.
It is constantly in touch with each other transcending boundaries. For example, at AMEA
sector level, it made Talent Sustainability Teams on various important elements of HR
functioning. These teams had representation of HR managers from different countries and they
regularly meet through web-based tools. These teams have been successful in drawing best
practices from different countries and suggest integrated and common processes for the whole
sector. It is quite excited about achievements of these Talent Sustainability Teams, which has
brought people together and a distinct change in the way we operate and bond.
Structure of the HR department at PepsiCo: Its values promote delivery of sustained growth
through empowered people acting with responsibility and building trust and company abide by
this culture. It is not possible for any global organization to work efficiently and effectively
without empowering people at local levels. Structures in the organizations are enablers in
decision making and that’s what we follow and practice.
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One of its guiding principles is diversity and inclusion, which rests heavily on collaborative
efforts. Teams take decisions in a very collaborative manner and we ensure enough
communication amongst managers to keep everyone concerned on a common grid.
PepsiCo, as an organization, are at different stages of evolution in different countries or
regions. Hence, structures are based on the need of delivering business results. Nonetheless,
its approach across all the geographical locations is very much global and integrated.
Diversity challenges in the organization: At PepsiCo, it has unique and talented individuals
who represent a variety of cultures and backgrounds. Its diversity is one of its core strengths
and a competitive business advantage. It is committed to foster and value a diverse and
inclusive work environment — one that allows each and every one of its employees to achieve
professional growth and fulfillment in all they do.
Challenges with regard to diversity differs from geography to geography, in certain parts of
the world if there is an issue of mindset in certain other areas you may find concerns around
infrastructure. In its case, its regional teams work closely with the businesses and local forums
to overcome these issues.
As part of this commitment, in India, it now has a cross-functional Diversity & Inclusion (D&I)
Council that has been actively working on creating a more diverse and inclusive work
environment, with a holistic focus on building infrastructure, talent acquisition retention and
more importantly building an inclusive culture to not only increase gender diversity but also a
gender intelligent organization.
Page 44
SECTION II
ROUTINE WORK
Page 45
PEPSI IPL 2015
OBJECTIVE OF THE STUDY
Analysis of the sales of Pepsi products during IPL 2015
ABOUT THE EVENT
The Indian Premier League (IPL), currently known as the Pepsi Indian Premier League for
sponsorship reasons is an annual Indian Twenty20 cricket tournament, founded in 2008 by
the BCCI. It consists of a number of teams which are named after Indian cities and owned by
franchises and is held in India, between April and June.
The IPL is the most-watched Twenty20 league in the world and is also known for its commercial
success. In 2010, the IPL became the first sporting event to be broadcast live on YouTube. The
brand value of the 2014 Indian Premier League was estimated to be around US$7.2 billion.
The IPL is currently supervised by BCCI Vice-President RanjibBiswal, who serves as the League's
chairman and Commissioner.Sundar Raman has been the IPL chief operating officer (COO) since
its first season, after he was appointed by the former IPL Commissioner Alit Modi in 2008.
Of the 11 teams to have competed since its inception, five have won the title: Kolkata Knight
Riders (2 times), Chennai Super Kings(2), Rajasthan Royals (1), Deccan Chargers (1),
and Mumbai Indians (1). Chennai Super Kings are the most successful team so far, having won
the title twice and have managed to qualify for the finals in every season except in 2009 and 2014.
ABOUT IPL 2015
IPL 2015 is the 8th
season of the IPL series. The eighth season started on 8 April 2015 and will run
until the final on 24 May 2015. There has been a fresh auction of players among teams. This season
had to be adjusted around a week late than every year because of the tight scheduling of teams due
to the 2015 Cricket World Cup.
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The teams in IPL 2015 includes: 1. Chennai Super Kings 2. Rajasthan Royals 3. Sunrises
Hyderabad 4. Mumbai Indians 5.Royal Challengers Bangalore 6. Kolkata Knight Riders 7. Kings
XI Punjab 8. Delhi Daredevils. From 2013 season, the American food and beverage
company PepsiCo took over title sponsorship for five years valued at ₹396.8 million, and also
exclusive beverage supplier for the IPL teams in the 2013 season.
INTRODUCTION
This is a report showing the analysis of the sales of the Pepsi products during all the matches that
happened at the Chinnaswamy Stadium Bangalore during IPL 2015. This will provide a detailed
report regarding the sales of the PepsiCo products within the stadium and also the factors that
affected the sales of the PepsiCo products in both negative and positive manner. This will also
show the comparison between the sales figures of PEPSI IPL 2014 and PEPSI IPL 2015.The
matches at Bangalore started on13th April 2015 and ended n 17th
May 2015. 7 matches were played
at Bangalore out of which 2 matches were washed out due to rain and there was very low sales
during those two matches.
FACTORS AFFECTING THE SALES
Sales is always a dependent variable that depends upon a lot of independent variables. These
variables has got a significant and diverse impact on the sales. These factors mainly includes the
customer preferences, quality of the product, quantity of the product, price of the product,
satisfaction level of the consumers, season, efficient and effective distributing, availability of
stock etc., which is general. Here we analyze the sales within the stadium of the PepsiCo products.
The factors that affects the Sales of PepsiCo products in the stadium includes the following:
 SEASON
 COMPETITORS(CCD,PARLE,BRITANIA)
 AVAILABILITY OF STOCK
 VISI COOLERS IN THE STADIUM
 HAWKERS WITHIN THE STADIUM
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 KIOSKS IN THE STADIUM
 COMMUNICATION
These factors have affected the Pepsi sales in a significant manner and as a result the Pepsi sales
has gone down when compared to last year’s IPL sales.
SEASON
March- April is the best selling season for Pepsi since in it is summer and soft drinks demands are
at the peak during this period. With IPL going on during the same period, Pepsi has great
expectations with its sales during this period. But this time out of 7 matches played at Bangalore
2 got washed out due to the heavy rain in Bangalore city. This has reduced Pepsi’s sales down by
about 50% on those rain spoiled days.
COMPETITORS
The competitors’ products didn’t have a good impact over the sales of Pepsi products. The quality,
quantity, price, appearance, attractiveness have a great impact over the sales of Pepsi’s products.
There no one like a competitor inside the stadium. A few of kiosks of other company’s includes
were Britannia, Café coffee day, papa jones etc. But they were no such a big competitor, Pepsi
were getting more sales when compared with them.
AVAILABLITY OF STOCK
Availability of the stock within the stadium is an important factor that would affect the sales. There
should be sufficient quantity of back up stock in the stadium premises to satisfy the customer
demands in case there is unexpected rise in the demands of Pepsi products. There were a few
shortages for Slice Alphonso and Tropicana Cranberry’s. Other than that there were enough
stocking the warehouses. Even though there were enough stocks there was lack of proper
distribution from the warehouses to all the stands and rooms in the stadium. Proper stocks didn’t
reach at the right time and at the right place where it was needed. There was lack coordination
between the people at the warehouse and the people at each stands and rooms.
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VISI COOLERS
Each and every kiosk inside the stadium and the stadium premises had one cooler each and
minimum of two coolers placed in the hospitality rooms. Most of the people prefer chilled
beverages rather than having them at normal temperature. So the VISI coolers were very much
essential. The visi coolers were functioning properly and in some stands there were reports that
there were stinky smells coming out of the coolers. As a result of this many people hesitated to
buy them and they became useless.
HAWKERS INSIDE THE STADIUM
The hawkers are the people who carry Pepsi products and sell them in the stands. There were about
160 hawkers from Pepsi inside the stadium. About 70% of the sales are done by the hawkers. They
were good and but lacked sincerity and were indulged into a lot of malpractices. Most of them
were lazy. The sales would have been more if they had done there more work with enthusiasm.
KIOSKS IN THE STADIUM
A kiosk means a small stall that is setup for the purpose of sales. There were about 27 Pepsi kiosks
inside the stadium. There was good sales at each and every counter. The only problem that was
faced at each kiosk was insufficient back up stock. The stocks got over when the demands were at
the peak.
COMMUNICATION
There was lack of proper communication between the people at the kiosks, stands and hospitality
with the people at the warehouse. Even when messages conveyed regarding the stocks, there were
no proper responses from the part of the people at the warehouse.
SALES REPORT
The sales report of each matches are given below, this report intimates the range of sales occurred
during each matches from the kiosks placed inside the stadium. This report helps in identifying the
Page 49
most selling stands around the stadium at Banglore. The sales were calculated on the basis of the
cups sold during the match days. Each cups were sold at Rs.50 both 450 ml and 300 ml so the
number of cups sold per match multiplied with 50 gives us the revenue during each match. Due to
rain some matches were delayed and cancelled so there were less sales as expected by the
company.
ACCREDITATION
The first phase of work is to complete the accreditation of the vendors and employees for the IPL
matches to be started from this Monday. This was mainly for the security purposes to be ensured
in the stadium. As a part of this we had to feed the details of the PEPSI vendors, promoters, and
hawkers into the Bookmyshow website. There were nearly 200 members enrolled for Pepsi and
around 50 for Lays. My second phase of work as per the checklist is to go the stadium and see that
there are coolers installed, the stock for the matches are arrived, if not arrange them call the
respective PSR's and to make an analysis of the overall stock sold during the match days and ensure
that there is hike in sales.
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PEPSI IPL -2015-SALES DATA
MATCH -1
MATCH 2
0
200
400
600
800
1
CUPS SALES
G LOWER 2 A1 A2 A3 A4
B LOWER B UPPER C LOWER C UPPER 1 C UPPER 2
D1 D2 F/D 1 F/D 2 F/D 3
F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2
M3 M4 P1 P3 1 P3 2
1115
636
0
200
400
600
800
1000
1200
1
CUP SALES
G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER
C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2
F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3
M4 P1 P3 1 P3 2
Page 51
MATCH 3
MATCH 4
0
200
400
600
800
1000
1200
1400
CUPS
CUPS SALES
G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER
C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2
F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3
M4 P1 P3 1 P3 2
0
200
400
600
800
1000
1
CUP SALES
G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER
C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2
F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3
M4 P1 P3 1 P3 2
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MATCH 5
MATCH 6
0
200
400
600
800
1000
1200
CUPS
CUP SALES
G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER
C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2
F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3
M4 P1 P3 1 P3 2
0
200
400
600
800
1000
CUPS
CUP SALES
G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER
C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2
F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3
M4 P1 P3 1 P3 2
Page 53
MATCH 7
FINAL SALES REPORT
485 483
0
200
400
600
800
1000
1200
1400
1
CUP SALES
G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER
C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2
F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3
M4 P1 P3 1 P3 2
6975
15396
15716
11254
10679
12417
15112
TOTAL SALES
1 2 3 4 5 6 7
12417
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
TOATL SALES
TOTAL SALES
1 2 3 4 5 6 7
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MATCH CUP SALES REVENUE TOTAL
13/4/2015 6975 348750 4377450
19/4/2015 15396 769800
22/4/2015 15716 785800
29/4/2015 11254 562700
2/5/2015 10679 533950
6/5/2015 12417 620850
17/5/2015 15112 755600
348750
769800
785800
562700
533950
620850
755600
OVERALL SALES
MATCH 1 MATCH 2 MATCH 3 MATCH 4
MATCH 5 MATCH 6 MATCH 7
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FINDINGS AND SUGGESTIONS
 Hawkers are the main source of sales so more hawkers more sales.
 From the previous sales report we can find the most selling kiosks so if more hawkers are
assigned in those stands the sales can be increased.
 Motivation of hawkers should be done like providing them incentives and the most selling
kiosks should be rewarded.
 Stocks should be properly available if less stocks less sales.
 Seasonal variations is a major factor during the sales, most of the matches were delayed
and cancelled due to rain. This affected the sales this year.
 Technicians and loaders should be more responsive and initiative in doing their work.
 There should be sufficient number of lids, straws, apron’s and cleaning materials available
to each kiosk’s.
 Mountain Dew was the most selling brand during this IPL season mainly because each of
the kiosk were branded with Mountain Dew.
 The gloves provided were not efficient and not of good quality so the hawkers refused to
wear the gloves.
 Malpractices such as reselling the cups, selling for more price can be avoided by keen and
vigilant supervising.
 When the stocks are placed inside the coolers customers demand for those bottles rather
than in cups and there is a big difference in the price variation too.
 Safety of the coolers are to be ensured, in some stands the products were looted and that is
a loss for the company.
 Ice cubes are not required in some stands so the promoters should ensure ice cubes are
utilized properly.
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RECOMMENDATIONS
Assuming the kiosks will be branded with Mountain Dew next IPL
2016, the changes that can be implemented to push the sales are:
1) Implementing combos with tickets such as attracting the customers by free soft drinks in
the stands .(free coupons tickets)
2) The sales can also be increased by including different price range of products.
3) Improving the promotional activities such as more flex boards branded with Mountain Dew
in each stands.
4) Collaborating soft drinks with Lays and sold as a combo.
5) More promotional activities of supporting the home team RCB.
6) Renovating the kiosks positions in the stadium, some kiosks in the food court were not
properly positioned and they were not visible to the customers so they have to be positioned
in such a way that they are visible to the customers.
7) If we can try shifting the position of free drinking water facility near to the kiosks that is
also a feasible provision of increasing the sales.
8) Allocation of more hawkers in the most selling kiosks more hawkers can bring more sales
in the lower stands.
9) Rewarding and shuffling talented hawkers to stands which are not bringing sales.
10) Incentives – major factor in hiking the sales from hawkers, pressure on the supervisors of
each stands, assigning targets to them.
11) Promote a new use of the product and enhance its Price war with competitors.
12) Public Relations and Brand Image
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Pricing of Pepsi Lays Combo for PEPSI IPL 2016
 Less Margin more turnover strategy
 By pricing the combo in the price range of Rs.70 ( Lays Pepsi)
 At this pricing the customers gets attracted to the product as well as the price.
 Pull strategy. Customer will be attracted to the product of its price.
 Word of mouth –Marketing Technique.
 Pricing at Rs.75 or Rs.80 won’t attract the customers so we have to follow a PUSH
strategy.
 Reduction of hawkers
INCENTIVE SCHEMES for PEPSI IPL 2016
 Hawkers are allotted with 500 cups per match but most of them are not able to
sell even this 500 cups. A new incentive scheme should be launched to attract
and motivate the hawkers and thereby increase the sales.
 Hawkers are now paid with Rs.400/match even if he sells 100 cups or 500 cups.
 In the new incentive scheme : hawkers who sell more than 500cups should be
paid Rs.100 extra so they feel motivated and thus the sales increases because
70% of the sales during the match comes from the hawkers
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BIBLIOGRAPHY
1) http://www.pepsiindia.co.in
2) www.pepsico.com
3) http://en.wikipedia.org
4) www.pepsiproductfacts.com
5) www.ipl2015.com
6) www.bookmyshow.com

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aakash report IPL

  • 1. ANALYSIS OF SALES IN PEPSI IPL 2015 AT PEPSICO INDIA HOLDINGS PRIVATE LIMITED BANGALORE ORGANIZATION STUDY Submitted to RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS) (Affiliated to Mahatma Gandhi University, KOTTAYAM) In partial fulfilment of the requirements for the award Of MASTERS OF BUSINESS ADMINISTRATION (MBA) (2014-2016) By AAKASH ASOKAN Reg. No: 1421003 RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS) RAJAGIRI VALLEY P.O KOCHI-682039
  • 2. Page 1 DECLARATION I hereby declare that the report entitled “Organization study of PepsiCo India Holdings Private Limited, Bangalore” is a bonafide record of the organization based project study done by me at PepsiCo India Holdings Pvt. Ltd, Bangalore during the period 2nd April 2015 to 28th May 2015 as part of my MBA program at Rajagiri College of Social Sciences, (Autonomous) Kochi, Kerala. This study has been undertaken in partial fulfillment of the requirement for the award of Master of Degree in Business Administration by Mahatma Gandhi University, Kottayam, Kerala. I also declare that this report is the result of my sincere effort and has not been submitted in full or part thereof, to any other university or institution for the award of any degree or diploma. PLACE: KOCHI DATE: 07/07/2015 AAKASH ASOKAN
  • 3. Page 2 ACKNOWLEDGEMENTS My gratification and elation on the successful completion of this organization based report would be incomplete without mentioning the names of all the people who helped me with it and without whose guidance and encouragement this wouldn’t have been successful. Above all I thank the Almighty for his grace and blessings at each and every stage of the project. I express my sincere gratitude to Dr. Binoy Joseph, Principal, Rajagiri College of Social Sciences (Autonomous), Kakkanad for showing his overwhelming support and interest shown in the work. I would like to express my deepest gratitude to project guide Mr. Nishanth G, Marketing Development Manager, PepsiCo India Holdings Private Ltd., Bangalore for his constant support and guidance during the study. I would like to express my respectful thanks to Mr. Suresh Babu, Assistant Marketing Manager PepsiCo India Holdings Pvt. Ltd., Bangalore for their support and help for the successful completion of the study. I extend my sincere thanks to Prof. Abraham Joseph, Faculty Member, Rajagiri College of Social Sciences (Autonomous), Kochi, Kerala for having spared his valuable time and for all the guidance given in executing the project as per requirements. Last but not the least I would like to record my deepest sense of gratitude to my family and friends for their support and constant encouragement.
  • 4. Page 3 TABLE OF CONTENTS PROFILE STUDYOF THE ORGANIZATION........................................................................ 5 INDUSTRY ANALYSIS .............................................................................................................. 6 PEPSICO – AN INTRODUCTION ............................................................................................ 9 HISTORY AND INCORPORATION....................................................................................... 10 PEPSICO INDIA ........................................................................................................................ 18 PEPSICO’S MISSION ............................................................................................................... 20 PEPSICO’S VISION .................................................................................................................. 20 FINANCIAL STATEMENT OF PEPSICO INC, AND SUBSIDARIES .............................. 22 PEPSICO’S BUSINESS MODEL ............................................................................................. 23 ORGANIZATIONAL STRUCTURE....................................................................................... 26 PRODUCT OR SERVICE PROFILE ...................................................................................... 29 CUSTOMERS OF PEPSICO .................................................................................................... 32 FUNCTIONAL DEPARTMENTS............................................................................................ 34 FUTURE GROWTH AND PROSPECTS................................................................................ 36 SWOT ANALYSIS OF PEPSICO ............................................................................................ 37 ROUTINE WORK...................................................................................................................... 44 PEPSI IPL -2015-SALES DATA............................................................................................... 50 FINDINGS AND SUGGESTIONS............................................................................................ 55 RECOMMENDATIONS............................................................................................................ 56 BIBLIOGRAPHY....................................................................................................................... 58
  • 5. Page 4 EXECUTIVE SUMMARY This project report is basically to understand the theoretical and functional aspects of an organization. The project study was under taken at the Bangalore unit of PepsiCo India Holding Pvt. Ltd., one of the major multinational companies. This study was aimed at an overall exposure to the working of the organization there by identifying the specific problems faced by it and suggesting recommendations or solutions. The first part of this report deals with profile study of the organization covering specific topics like Industry profile, incorporation and history of the organization, organization structure of PepsiCo India Holdings Pvt. Ltd. The second part of the report deals with routine work in the organization and in the stadium .This part gives information about the topic “Analysis of Sales of Pepsi Co (India Holdings Pvt LTD Bangalore) during IPL 2015.” The purpose of the study is to understand the consumer’s perception towards Pepsi Co products and the various marketing strategies used by the company to capture the sales during the matches. This also gives a clear view about the perception of consumers towards soft drinks. The study is totally confined to improve the sales of Pepsi Co products in the stadium.
  • 6. Page 5 SECTION I PROFILE STUDYOF THE ORGANIZATION
  • 7. Page 6 INDUSTRY ANALYSIS The food & beverage industry is usually defined by its output of products that satisfies various demands of people on food & drinks. In today’s world, the food & beverage industry has expanded a lot. It has spread across all walks of life. Hotel, restaurants, industrial canteen, bars, soft drink and juice companies, hospital canteen, railway, airways, candy manufacturers, all are now part of food & beverage industry. The basic function of this industry is to serve food & drink to people and thereby satisfy their needs. The main aim is to achieve customer satisfaction. The ever rising consumer attraction towards the readymade food keeps the industry boosted for decades. As per Food Processing’s Annual list 2014, top 5 food and beverage companies in the world include PepsiCo Inc., Tyson Foods Inc., Nestle, JBS USA and Coca- Cola. Products manufactured by the beverage industry include: bottled water, juice, sparkling and still drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks, energy drinks, sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider and spirits. The non- alcoholic beverage industry is the fastest growing sector. This rapid growth is partially due to the combination of maturity of the carbonated soft drink sector and heavy investments by major food and beverage companies. Soft drink industry is growing at 6% to 7% every year. Global beverage players, Coke and Pepsi have a combined market share of about 95%, Campa Cola has 1% share and the rest is with the local players and some fake players. There are about 110 soft drink producing units in India, of which almost 60% is owned by Indian bottlers. The beverage industry is broadly classified into water and flavored drinks. Flavored is divided into Alcoholic and Non-Alcoholic drinks. Nonalcoholic includes milk based drinks, fruit based drinks, 100% fruit juice, hot beverages and soft drinks. Among the non-alcoholic drinks, carbonated soft drinks form the core part. Coca-Cola, PepsiCo and Cadbury-Schweppes are the dominant players in this field. Cola segment has a market share of around 62% which includes the drinks like Pepsi, Coca-Cola, Thumps up, Diet Pepsi and Diet Coke. The remaining non- cola products includes the flavors like orange, cloudy lime, clear lime
  • 8. Page 7 and mango. Soft drinks are available in variants like glass bottles, aluminum cans and PET (Polyethylene Terephthalate) bottles. They are also available in disposable containers. Market preference in India varies with regions. Cola markets are dominated in the metro cities and northern states like Uttar Pradesh, Punjab, and Haryana etc. Orange flavors and sodas are more preferred by the southern states. Western states prefer mango flavors and drinks like diet Pepsi and diet coke constitutes only 0.7% of the total carbonated beverage market. The per capita consumption of soft drinks in India is about 5 to 6 bottles, same in Nepal, 17 in Pakistan, 21 in Sri Lanka, 73 in Thailand, 173 in Philippines and 605 in Mexico. Steady growth and increasing sales show highly rewarding future for the soft drink business in India. This industry also supports growth of industries like refrigeration, glass, transportation and sugar. NCAER (National Council of Applied Economic Research) conducted a study and it says that 91% of the soft drink sales are made to the lower, middle and upper middle classes. Indian beverage market is growing at a rate of about 6% a year, Chinese by 16% and the Russian market expanded at almost four times the rate of growth of the Indian market. The two major players contributing to the growth of Indian market is Coca-Cola and PepsiCo. Coca-Cola claims a market share of 51%, while Pepsi has a share of 46%. Soft drinks industry continues growth in India mainly due to the demand for juices and bottled water. Carbonated drinks and other sports and energy drinks are facing pressure due to growing health concerns. They still continue to grow because of the brand name they hold and the efforts they take. Both Coca-Cola and PepsiCo have been expanding their non-carbonated drink line-ups, as consumers seem to be shifting away from carbonated soft drinks. New flavors were launched by the leading companies like Coca-Cola India Pvt Ltd and PepsiCo India Holdings Pvt Ltd which helped them in maintaining consumer’s interest in spite of slowdown. This made the consumers buy the product at least once to taste the new variety. Smaller domestic companies like Hector Beverages Pvt Ltd and Pioma Industries Ltd also introduced guava flavors, which is new in the market. Since the demand for juices has increased, the global beverage leaders, PepsiCo and Coca-Cola compete mainly on juices. They are very close to each other in case of carbonates, bottled water and juices. PepsiCo launched Tropicana Coconut Blends and Coca- Cola introduced Minute Maid
  • 9. Page 8 Guava flavor in 2013 to attract consumers. The factors like convenient location and easy to buy products helped to continue the dominance of traditional channels to continue. But the modern formats like hypermarkets and the modern trade which provides better assortments and price is gaining an edge over the other. As per Market Research Company Euro monitor International, global soft drinks volumes expanded over four percent in 2013 and value sales grew by more than five percent with a retail market size of over US $531.3 billion dollars. While the US remains the world's largest market in both value and volume, markets such as China, Brazil and Mexico are also growing rapidly. The 2013 retail soft drink market size in China totaled US $66.5 billion with 15.2% percent fixed growth. Brazil and Mexico's totals were US $22.5 billion and US $28.3 billion with 8.0% percent fixed and 8.2% percent growth, respectively. Now let’s have a look into the bottled water industry. It can be divided into two primary business models, which is home & office delivery and retail bottled water. The home and office delivery portion accounts for around 12% of the bottled water market and 88% by the retail sale. Today, with a rise in health awareness, poor quality of tap water, increase in tourism and the ease of availability of bottled water, the per capita consumption of bottled water in India is on the increase. The total market was valued at Rs.60 billion in 2013 and is expected to grow at a rate of 22 percent, to reach Rs.160 billion in 2018. Indian bottled water market is dominated by five players accounting for a share of 67%. They include Bisleri, Coca-Cola, PepsiCo, Parle and Dhariwal. Considering the demand of soft drinks, during summer season, there is demand from the customer side. They will come to stores asking for soft drinks. But, otherwise the companies will have to push the products aggressively. Sales promotions play a major role in such times. Sales will not double and all, but will definitely increase by 20-30%. Nature of competition: Oligopoly. An oligopoly is a market structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated. Although only a few firms dominate, it is possible that many small firms may also operate in the market. In the soft drinks industry 95% of the total market share is constituted by the dominant players Pepsi and Coke. The main characteristics of firms operating in a market with few close rivals include interdependence i.e. they cannot act independently, profit maximization, ability to
  • 10. Page 9 set price i.e. they are price setters rather than price takers, high entry and exit barriers, few dominant players, products may be homogenous or differentiated, can retain long run profits and non-price competition. Challenges faced by the industry: Main challenges faced by the food and beverages industry includes Climate change, Global economic downturn, Obesity and diet-related illnesses, food safety and consumer trust and the evolving simplicity trends among the consumers. PEPSICO – AN INTRODUCTION PepsiCo Inc. is an American Multinational Corporation with its headquarters at Purchase, New York, United States. It manufactures and distributes food and beverage products in more than 200 countries. It was formed in 1965 by Donald Kendall and Herman Lays in North Carolina, U.S with the merger of Pepsi-Cola Company and Frito- Lay, Inc. Since then the company expanded from Pepsi to a broader range of products. Among the expansions, the largest is the acquisition of Tropicana in 1998 and the merger with Quaker Oats in 2001. PepsiCo has net revenues of more than $65 billion. Now the company owns several brands and among them, 22 brands including Pepsi, Lays, Gatorade generates more than $1 billion each in revenues. As per the market research company, Information Resources, Inc. (IRI), PepsiCo owns nine of the forty largest packaged good’s trademarks in US. The recipe for Pepsi was first developed by Caleb Bradham in the 1890s. Food products include chips, cereals, pasta, flavored snacks, rice and dairy based products and beverage products include carbonated soft drinks, sports drinks, juices, bottled water and ready to drink tea and coffee. Indra Krishnamurthy Nooyi is the Chief Executive officer of PepsiCo since 2006. The global food and beverage leader employs around 2,74,000 people worldwide. PepsiCo’s people have a commitment towards sustainable growth by investing in a healthier future for people and our planet. They believe, it also means successful future of PepsiCo. This unique commitment is called Performance with Purpose. PepsiCo promises to provide a wide range of food and beverages, to find innovative ways to reduce its impact on the environment by reducing energy, water and packaging volume, to provide great workplace to employees and to respect, support and invest in the local communities where they operate. Primary competitor of the company in the beverage market is Coca- Cola.
  • 11. Page 10 HISTORY AND INCORPORATION 1898 - Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham, a pharmacist and drugstore owner in New Bern, North Carolina. He began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. Caleb Bradham’s creation, a unique mixture of kola nut extract, vanilla and rare oils, became so popular his customers named it "Brad's Drink". Caleb decided to rename it "Pepsi-Cola", and advertised his new soft drink. People responded, and sales of Pepsi- Cola started to grow, convincing him that he should form a company to market the new beverage. The new name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts. It was first used on August 28. 1902 – Bradham launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere. 1903 - The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." 1905 - A new logo appears, the first change from the original created in 1898.He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states. Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year. 1906 - The logo is redesigned and a new slogan added: "The original pure food drink." The trademark is registered in Canada.
  • 12. Page 11 1909 - Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned as a possible candidate for Governor. The theme "Delicious and Healthful" appears, and will be used intermittently over the next two decades. 1910- The first Pepsi-Cola bottler’s convention is held in New Born in North Carolina. 1920 - Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the slogan, "Drink Pepsi-Cola. It will satisfy you." Then after World War I, the cost of doing business increased drastically. Sugar prices see sawed between record highs and disastrous lows, and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted. By 1921, only two plants remained open. A successful candy manufacturer, Charles G. Guth, appeared on the scene assuring the future of Pepsi-Cola. Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's soda fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand. One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually administered from a Baltimore building apparently owned by Coca-Cola, and named for its president. Within two years, Pepsi could earn $1 million for its new owner. With the resurgence came new confidence, a rarity in those days because the nation was in the early stages of a severe economic decline that came to be known as the Great Depression. 1934- A land mark year for Pepsi-Cola, the drink is a hit and to attract even more sales, the company begin selling it 12-ounce drink for five cents (the same cost as 6-ounce of competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost saving proves irrespirable to depression-worn Americans and sales skyrocket nationally.
  • 13. Page 12 1936- Pepsi grand’s 94 new US franchises and year-end profit reach $2100000. 1938- Water S Mack, Jr, V.P of phoenix Securities Corporation, president of the Pepsi-Cola company considers advertising the key stone of the soft drink business, turns Pepsi into a modern marketing company. 1939 - A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase consumer awareness of Pepsi's value advantage. 1940- The pepsi-cola company made history when the first advertisement jingle was broadcast nationally on the radio. The jingle was “nickel nickel” an advertisement for Pepsi-cola that referred to the price of Pepsi and the quantity for that price “nickel nickel” became a hit record and was recorded into 55 languages. 1941 - In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record messages for armed services personnel overseas. 1942- One on many company sponsored effort to allow soldiers to communicate with friends or family. This record was made in New York City. But often booths would be setup with mobile recording equipment that was bought to where the soldiers were. 1943- Pepsi’s theme line becomes “Bigger drink, Better taste”. 1948- Corporate headquarters moves from Long Island City, New York to Midtown, Manhattan. 1950-Alfred N. Steele becomes president and CEO of Pepsi cola. Mr. Steele’s wife, Hollywood movie star Joan Crawford, is instrumental in promoting the company’s product line. Pepsi receives its new logo, which incorporates the “Bottle Cap” look. The new logo is the fifth in Pepsi history. 1953- “The Light refreshment” campaign capitalizes on a change in the products formula that reduces caloric content. 1954 - "The Light Refreshment" evolves to incorporate "Refreshing without Filling." 1958 - Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with
  • 14. Page 13 young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided bottle. 1959- Pepsi debuts at the Moscow fair. Soviet president Khrushchev and US vice president Nixon share a Pepsi. 1961 - Pepsi further refines its target audience, recognizing the increasing importance of the younger, post-war generation. "Now it’s Pepsi, for those who think Young" defines youth as a state of mind as much as a chronological age, maintaining the brand's appeal to all market segments. 1962- Pepsi receives its new logo, the sixth in Pepsi history. The “serrated” bottle cap logo debuts, accompanying the brands ground breaking “Pepsi generation” ad campaign. 1963 - In one of the most significant demographic events in commercial history, the post-war baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers' lifestyles and attitudes. 1964 - A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising. 1965 - PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lay. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi-Cola, was president and chief executive officer. 1969 - "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with “Live/Give," a new awareness and a reflection of contemporary events and mood become integral parts of the advertising's texture.
  • 15. Page 14 1970- Pepsi leads the way into metrics by introducing the industry’s first two litter bottles. Pepsi is also first company to respond to consumer preference with light weight, recyclable, plastic bottles. The Pepsi world headquarters moves from Manhattan to purchase, NY. 1974- First Pepsi plant opens in the USSR. Television ads introduce the new theme line, “hello, sunshine, hello mountain dew.” 1976 - "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even smaller dogs, becomes an instant commercial classic. 1978- The company experiment with new flavors. 12 pack cans are introduced. 1980- Pepsi becomes number one in sales in the take home market. 1981- PepsiCo and china reach government agreement to manufacture soft drinks, with production beginning next year. 1982- Pepsi free, a caffeine-free cola is introduced nationwide. Pepsi challenge activity has penetrated 755 of the US market. 1983- Mountain dew launches the “dew to it” theme. 1984 - A new generation has emerged-in the United States, around the world and in Pepsi advertising, too. "Pepsi the Choice of a New Generation" announces the change, and the most popular entertainer of the time, Michael Jackson, stars in the first two commercials of the new campaign. The two spots quickly become "the most eagerly awaited advertising of all time." 1985- After responding to years of decline, coke loses to Pepsi in preference tests by reformulating. However, the new formula is met with wide spread consumer rejection, forcing the reintroduction of the original formulation as “Coca-Cola classic” the cold war takes “one giant sip for mankind,” when a Pepsi ‘space can” is successfully tested abroad the space shuttle. By the end of 1985, the new generation campaign earns more than 58 major advertising and film-related awards. Pepsi’s campaign featuring Lionel Richie is the most remembered in the country, according to consumer preference polls.
  • 16. Page 15 1986 - 7up international is acquired in Canada. Pepsi-Cola acquires Mug Root Beer. 1987 - Pepsi-Cola world headquarters moves from purchase to Somers, New York. After a 27 year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign in Times Square. 1988 - Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic" commercial named "Chase." "Chase" airs during the Grammy Awards program and is immediately hailed by the media as "the most-watched commercial in advertising history." 1989 – Pepsi lunges into the next decade by declaring Pepsi lovers “A Generation ahead”. Pepsi- Cola introduces an exciting new flavor wild cherry Pepsi. 1990 - Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right one baby." 1991 – Pepsi introduces first beverage bottles containing recycled polyethylene PET into the market place. The development marks the first time recycled plastic is used in direct contact with food in packaging. 1992 - Celebrities join consumers, declaring that they "Gotta have it." The interim campaign supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s. Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew whose claim to fame is that, except for the unique great taste of Dew, they've "Been there, Done that, Tried that." 1993 – Brand Pepsi introduces its slogan, “Be young. Have fun. Drink Pepsi.” Pepsi- Cola profit surpass One billion dollar. Pepsi introduces an innovative 24 – can multi pack that satisfies growing consumer demand for convenient large-size soft drink packaging. “The cube” is easier to carry than the traditional 24pack and it fits in the refrigerator. 1994 - New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weather up explaining the relationship between freshness and superior taste to consumers.
  • 17. Page 16 1995 - In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship. 1996-in February of this year, Pepsi makes history once again, by launching one of the most ambitious entertainment sites on the World Wide Web. Pepsi world eventually surpasses all expectations, and becomes one of the most landed and copied, sites in the new media, and firmly establishing Pepsi’s presence on the internet. 1997- In the early part of the year, Pepsi pushes into a new era with the unveiling of the generation next campaign. Generation next is about everything that is young and fresh; a celebration of the creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at every step of the way. PepsiCo announces that, effective October 6th, it will spin off its restaurant to form triton globe restaurant, Inc. including pizza hut, taco bell &Kfc, and it will be the largest in sales. 1998- Pepsi celebrates its 100th anniversary. PepsiCo chairman and CEO Roger A.Enrico denoted his salary to provide scholarship for children of PepsiCo employees. Pepsi introduces Pepsi One- the first one calorie drink without that diet taste. PepsiCo acquires Tropicana Products from Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo. Frito-Lay becomes the snack chip leader in South and Central America as it enters a joint venture with Empreseas Polar SA of Venezuela. 1999 - Tropicana juices enter the India market for the first time. 2000 - PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage Company, whose highly innovative SoBe brand has made it one of industry's most successful companies. 2001 - PepsiCo merges with The Quaker Oats Company. 2002 -Quaker Oatmeal celebrates the 125th anniversary of the nation's number-one choice for a nutritious, hot breakfast cereal.
  • 18. Page 17 2003 - Pepsi-Cola launches Sierra Mist in the United States. Frito-Lay removed trans-fat from nearly its entire snack chips portfolio, including Lay's potato chips, Tostitos tortilla chips and Cheetos cheese flavored snacks. Pepsi-Cola trademark turns 100 years old. 2004 - PepsiCo publishes its first Corporate Citizenship report in the 2003 Annual Report. 2005 - PepsiCo celebrates its 40th anniversary. 2006 - Pepsi celebrates its participation in its 20th consecutive Super Bowl. IndraNooyi named chief executive officer of PepsiCo. Pepsi acquires IZZE Beverage Company. PepsiCo announced its intent to acquire Naked Juice Company and the New Zealand snack company Bluebird Foods. PepsiCo completes the acquisition of Stacy's Pita Chip Co. 2007 - PepsiCo introduces Performance with Purpose, making it one of the first contemporary companies to recognize the important interdependence between corporations and society. PepsiCo and Pepsi Americas jointly acquire Sandora, a leading juice company in Ukraine. 2008 - PepsiCo announces plans to invest US $1 billion in China over the next four years as part of the strategy to expand in emerging markets and broaden the portfolio of locally relevant products. 2009 - PepsiCo and Calbee Foods Company announce a strategic alliance to make and sell a wide range of food products in Japan. PepsiCo introduces the first climate-friendly vending machines to the United States. 2010 - PepsiCo completed the acquisition of The Pepsi Bottling Group, Inc. and PepsiAmericas, Inc., its two largest anchor bottlers. PepsiCo announces its intent to acquire Russia's Wimm-Bill- Dann, Russia's leading branded food-and-beverage company. AMP Energy Juice launches across the United States. 2011 - PepsiCo and Tingyi Holding, one of the major food and beverage companies in China, announce an agreement to form a strategic alliance in China. PepsiCo acquires Mabel, a leading producer of cookies, crackers and snacks in Brazil.
  • 19. Page 18 2012 - Diet Mountain Dew, Brisk and Starbucks ready-to-drink beverages join PepsiCo's portfolio of billion-dollar brands, bringing the total to 22. Pepsi launches reduced-calorie cola innovation Pepsi Next. 2013 - Müller Quaker Dairy, a joint venture between PepsiCo and The Müller Group, open a new state-of-the-art yogurt manufacturing facility in Batavia, New York. As per the latest news new non-cola beverage sweetened with stevia and sugar will be launching in US this year. While cola products combining stevia and sugar will be tested in the other markets. PEPSICO INDIA PepsiCo entered India in 1989 and in a short period, has grown into one of the largest food and beverage businesses in the country. PepsiCo growth in India has been guided by its global vision of “Performance with Purpose”. This means that while businesses maximize shareholder value, they have a responsibility to all the stakeholders, including the communities in which they operate, the consumers they serve and the environment whose resources they use. PepsiCo India has two types of operation namely: 1. Company owned Bottling Operation (COBO): PepsiCo India sets up own bottling units (factories). The company also does marketing of the beverage. There are 4 such units in India. They are Karnataka & Kerala, Tamil Nadu, Mumbai and AndraPradhesh&Telugana. 2. Franchisee owned Bottling operation (FOBO): Where PepsiCo authorized bottling units manufacture and market the Pepsi brands in certain agreed area. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. Large investor and one of the largest food & beverage businesses in India: One of the largest US multinational investors in the country, PepsiCo has been consistently investing in India and
  • 20. Page 19 has built an expansive beverage and snack food business supported by 38 beverage plants and 3 food plants. PepsiCo and its partners recently announced an additional targeted investment of Rs. 33,000 Crore in India by 2020 in the areas of product innovation, increasing manufacturing capacity, ramping up market infrastructure, strengthening supply chain and expanding company’s agriculture programme. A growing portfolio of enjoyable and wholesome snacks and beverages: PepsiCo India’s portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthier products. The portfolio includes several healthier treats like Quaker Oats, Tropicana juices, Tropicana fruit powders, rehydrator Gatorade, Tata Water plus, Lay’s baked range, Quaker flavoured oats and Quaker NutriUpma&NutriPoha breakfast range with the power of wholegrain. Model partnership with over 24,000 farmers: PepsiCo India has pioneered and established a model of partnership with farmers and now works with over 24,000 happy farmers across nine states. PepsiCo provides quality seeds, extension services, disease control packages, bank loans, weather insurance, and the latest technological practices. Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to achieve ‘Positive Water Balance’ in the beverage world, and has been Water Positive since then. This fact has been independently assured by Deloitte Touché Tohmatsu India Pvt. Ltd. In 2012, PepsiCo India saved 8.2 billion liters more that it consumed in its manufacturing operations. The company made this possible through innovative irrigation practices like direct seeding, community water recharging initiatives, and by reducing the consumption of water in its manufacturing facilities. Care for the environment: PepsiCo India is now focused on reducing its carbon footprint. More than 40 per cent of its energy is today generated from renewable sources such as bio mass & rice husk boilers and wind turbines. PepsiCo in partnership with the NGO Exnora and local municipalities has also been working on a unique waste collection and treatment program called ‘Waste-to-Wealth’. Exemplary employment practices: PepsiCo India provides direct and indirect employment to almost 2,00,000 people. The company believes in providing employment and growth opportunities
  • 21. Page 20 to local talent. Its ‘College of Leadership’, ensures early identification of talent, and employees’ focused development through critical experiences. Infrastructure facility: PepsiCo has a very good canteen service for its employees where they are served with good and nutritious food and drinks. It maintains a very good communication system internally and externally as it is facilitated or equipped with telephones, computers and the internet services. The PepsiCo offices are being redesigned according to the modern requirement with cabinets, office furniture's, systems, fans, air conditions, stationeries, etc. PepsiCo is having pleasant ambience in its entire unit and in head office. It is being equipped with all kind of modern facilities that are required. PEPSICO’S MISSION Our mission is to be the world's premier consumer products’ company focused on convenient foods and beverages. We seek to produce financial rewards to investors even 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. PEPSICO’S VISION PepsiCo's responsibility is to continually improve all aspects of the world in which we operate – environmental, social, economic – creating a better tomorrow than today. Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company. Performance with Purpose At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society – delivering what we call Performance with Purpose.
  • 22. Page 21 Our approach to superior financial performance is straightforward – drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability. QUALITY POLICY 1) The best delivery. 2) The best product in the market place. 3) The highest quality. 4) The best testing. CORPORATE OFFICE PepsiCo India Holdings Private Limited, 2nd Floor, Tower A, Global Business Park, M.G. Road, Sikenderpur, Gurgaon, Haryana, 122002 HEAD OFFICE PepsiCo India comes under AMEA (Asia, Middle East, and Africa) region. PepsiCo India Holdings Private Limited, 3B, DLF Corporate Park, 'S' Block, Qutab Enclave, Phase-III, Gurgaon – 122002, Haryana, India Tel: 91-124-2880699
  • 23. Page 22 4 UNITS IN INDIA 1) Karnataka & Kerala 2) Tamil Nadu 3) Mumbai 4) AndraPradhesh&Telugana FINANCIAL STATEMENT OF PEPSICO INC, AND SUBSIDARIES 2014 Financial Highlights: 53% 47% Mix of Net Revenue Food Beverage 32% 22% 20% 12% 10% 4% Net Revenues PepsiCo Americas Beverages Frito-Lay North America PepsiCo Europe Latin America Foods PepsiCo AMEA Quaker Foods North America
  • 24. Page 23 Summary of Operations 2014 2013 %change Net revenue $66,683 $66,415 –% Core total operating profit $10,313 $10,061 2.5% Core earnings per share attributable to PepsiCo $ 4.63 $ 4.37 6% Free cash flow, excluding certain items $ 8,259 $ 8,162 1% Capital spending $ 2,859 $ 2,795 2% Common share repurchases $ 5,012 $ 3,001 67% Dividends paid $ 3,730 $ 3,434 9% (in millions except per share data; all per share amounts assume dilution) PEPSICO’S BUSINESS MODEL Diversified business model: PepsiCo Inc. (PEP) has a diversified business model with a strong presence in food and beverage products. In a scenario where carbonated soft drinks have been continually declining, PepsiCo’s significant presence in the snack food category gives it an edge over its closest rival, The Coca-Cola Company (KO), which is heavily dependent on sparkling or carbonated beverages. In 2014, PepsiCo’s food business accounted for 52% and its beverage business accounted for 48% of the company’s $66.4 billion revenues. Complementary products: PepsiCo benefits from its presence in two complementary categories: food and beverages. There is a high coincidence of purchase between these two categories. According to Information Resources, Inc. (or IRI), a market research company, 54% of US consumers who buy salty snacks also buy a beverage in the same basket. For instance, PepsiCo states that when Frito-Lay snacks are merchandised along with Pepsi carbonated soft drinks (or CSDs), it results in higher sales. Leveraging category strength: The presence of one category of business in a region makes PepsiCo’s entry easier into the complementary category. For instance, PepsiCo is able to leverage its beverage business in emerging markets to develop its snacks business.
  • 25. Page 24 Competitors have a similar business model: PepsiCo’s peers Kraft Foods Group Inc. (KRFT) and Mondelez International, Inc. (MDLZ) also have a presence in the food and beverage categories. In 2013, Kraft Foods derived 10% of its $18.2 billion in revenue from refreshment beverages and food. That year, MondelezInternational derived about 17% of its $35.3 billion of revenue from beverages and snack food. The companies mentioned above are part of the consumer staples sector. PEPSICO’S THREE-CHANNEL DISTRIBUTION NETWORK PepsiCo Inc. (PEP) is a leading food and beverage company with an impressive global presence. The company’s products reach the market through the following three channels: direct store delivery (or DSD), customer warehouse, and third-party distributor networks. PepsiCo chooses the relevant distribution channel based on customer needs, product characteristics, and local trade practices. Direct store delivery: Under the DSD system, PepsiCo delivers products directly to retail stores. Of the three channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more suitable for products that are restocked often and are sensitive to promotions and marketing. Customer warehouse: The customer warehouse system is a less expensive distribution channel. It’s ideal for products that are less fragile and perishable, have lower turnover, and are not purchased impulsively. Third-party distributor networks: PepsiCo distributes food and beverage products to restaurants, businesses, schools, and stadiums through third-party food service and vending distributors and operators. There are two types of sales. Primary sales and Secondary sales. Both primary and secondary sales are important for the company. Primary sales happen between the manufacturer and the distributor. That is, from the company, products are made available to the distributors. The products are taken from the factory at Nelamangala, Bangalore. PepsiCo India Holdings Pvt Ltd (Factory), 34 Km Stone, National Highway, TeppadaBegur, Nelamangala, Bangalore – 562123.
  • 26. Page 25 In order to decide on the distribution point location, company will look into certain factors like  How many outlets are there in and around that region?  No. of vehicles required?  Manpower required?  Stocks needed? After deciding on such factors, a distribution point will be selected. For each distribution point there will be one CE and 2-3 PSRs depending on the requirement. Secondary sales happen between distributors and retailers. It means generating sales from market. PSRs are responsible for generating orders. They go to different outlets in the region, speak with the customers, convince them and get the orders. They are considered as the key people as they are the frontline employees who have direct contact with the customers (retailers). They only know the pulse of the market. PSRs have a vital role in maintaining route, increasing Pepsi share, increasing cooler effectiveness etc. In order to decide on the sales promotion activities, their contribution is very important. Some customers ask for additional benefits or they’ll ask why you are not providing the benefits which the other company (competitor) provides. Likewise, PSRs can understand customer expectations and what the competition is doing, which can be used by the company to decide on promotional activities. Depending on the orders, vehicles and manpower will be decided for the distribution purpose. Manpower includes loaders, drivers and collection/ delivery agents. There are two kinds of loaders. Primary loaders are responsible for unloading company stocks at the distribution point and secondary/ route loaders are responsible for unloading stocks at the outlets. Collection or delivery agents are responsible for delivering the stocks at the outlets and collecting cash. Most of the times a single person will be the driver and delivery agent in order to reduce the cost. Visi Coolers and signage’s are provided to the outlets. Visi coolers are given only to those outlets with 365 day business. Some outlets will be opened during summer and they will ask for coolers. It will not be provided to such small outlets. In order have these coolers; the retailers should sign an agreement with the company stating that they’ll keep the coolers for these many years. For getting the coolers, there are some conditions to be followed.
  • 27. Page 26 Coolers are in different sizes. For every 100 liters of cooler, the retailer should buy at least 3 cases of glass bottles and 6 cases of any other stocks initially in order to have cooler. Retailers are not supposed to keep the competitor products in Pepsi’s visi coolers. But, whether they follow this or not depends on the relationship they have with the company staff. Some PSRs become successful in making them do so. But some are not. ORGANIZATIONAL STRUCTURE Organizational Hierarchy of PepsiCo India Holding Private Ltd.: The head office of PepsiCo India is situated in Gurgaon, Haryana. In PepsiCo Bangalore there is only sales department with HR and marketing being the support system.90 % of employees in Karnataka Kerala region come under sales department. The rest 10 % include Human resource, marketing and IT. For every region (For example, Karnataka, Kerala etc.), there is a unit manager under whom there are many Territory Development Managers (TDM). Karnataka is divided into different territories and TDMs are responsible for sales in their particular territory. There are many Customer Executives (CE) under each TDM. The next level includes the frontline employees called Pre Sales Representatives (PSR).
  • 28. Page 27 UM-Unit Manager: In charge of day to day operations and supervisions of all the functions within the unit including operations, logistics, sales and distribution and marketing. The unit manger reports to the CEO India at Gurgaon. TDM- Territory Development Manager: TDM is the in charge of the sales and distribution network of particular territory within a zone. Responsible for the daily, monthly and annual sales within the territory decides the daily schemes for products and incentives for salespersons'. He is also responsible for cost effectiveness, profit generation and profit maximization within the territory. MDM-Marketing Development Manager: MDM is the responsible for all the marketing activities and their effectiveness within the territory. Decide the format and time frame of the marketing and the promotional activities and the incentives given to the retailers. SDM- Sales Development Manager: He is responsible for maintaining cooler purity i.e. to ensure that the Pepsi coolers consist of their products only. Coolers should also be 100% charged. ASM-Area Sales Manager: Reports to the TDM. He is directly responsible for any issues in the area and is supposed to ensure the smooth functioning of the entire sales and distribution network in the area. ASM is responsible for timely disposable of any issue faced by the retailers. He decides and approves the boards, displays and hoardings in the area. SM- Sales manager 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 outside agencies for displays, boards, checks conducted in the market. He is also responsible to keep a check on the expenditure of the marketing activities in the market. BDM- Business Development Manger BDC- Business Development Coordinator Customer executives come under every TDMs, ASMs and MDCs. Each distributor point will have one CE and PSRs (Pepsi sales representatives) under him.
  • 29. Page 28 CE-Customer Executive: He is supposed to report to the ADC and in charge of salespersons. He is required to visit the market and accompany every salesperson as frequently as possible. He is the first person to get the information about the market / area and is the first contact if the salesperson or retailers face issue and responsible for assigning and achieving daily sales target given to the salespersons. ME-Marketing Executive: Reports to the MDC and is responsible for daily functioning of the marketing activities in the including awareness of promotions in the market and the response in the market. 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 the new scheme launched. They are also required to push for the sale of new product launched in the market and make sure that the retailers are following the company guidelines regarding the launch and the maintenance of visi coolers. They report to the CE. Marketing Assistant: 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 retailers are following the guidelines of the company regarding promotional displays, other displays and displays in the visicoolers. They report to the ME. Recruitment Sources: 1. Internal reference-20% 2. Internal job posting-30% 3. Naukri-10% 4. Consultance-40% Training Process: For all fresher’s, the HR team arrange a 15 days training programme. They call it as 15 days baby care programme. They send the fresher’s to the market for 15 days with a CE (buddy). After learning the market, fresher’s have 3 days of training session. For all CEs & sales managers, now Pepsi implemented a 4DX programme (4 discipline execution program). Performance appraisal: Performance management program.
  • 30. Page 29 1. Objectives (should be smart) 2. Managerial rating 3. Calibration 4. Focal pointing Industrial Relations: The Company has a very cordial atmosphere. It is mainly a people Focus Company than engineering or technical oriented. It is informal during approach and formal during results. The management and union have joined hands for the achievement of organizational objectives. Leave system:  Personal leaves- Unlimited  Sick leaves- 30 days  Maternity leave- 6 months  Sabbatical- If he complete 3 years, he can take leave for 6 months to 1 year. No salary.  Annual leaves- 26 days Motivation: Every unit has their own sales driven tactics, engagement calendar-celebrating days, rewards and recognition. So it will vary from units to units. Newsletter every week congratulating 5 top performing customer executives, contests, incentives, meeting coffee with Unit Manager, Team outing, cricket match, family day etc… are some of the other usual activities. PRODUCT OR SERVICE PROFILE PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joyas well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonicsports drinks - Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda and Mangola add to the diverse range of brands. PepsiCo’s foods company, Frito-Lay is the leader in the branded salty snack market and all Frito- Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded
  • 31. Page 30 snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chip sand Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. PepsiCo offers products to over 200 countries and territories, and their Global Brands are their biggest sellers. There are 22flagship food and beverages brands for PepsiCo and there are three categories of products. They are 1. Good for You: At PepsiCo, Good for You means just those nutritious products that include fruits, vegetables, whole grains, low-fat dairy, nuts, seeds and key nutrients, with limits on sodium, sugar and saturated fat that meet global dietary requirements. These are the foods and beverages that fuel our body, our performance and our lifestyle. 2. Better for You: Indulging yourself doesn't mean feeling guilty. Better for you brands offer snacks baked with lower fat content, snacks with whole grains, and beverages with fewer or zero calories and less added sugar. PepsiCo’s carbonated beverages: PepsiCo has a strong carbonated beverage portfolio that includes its leading brand, Pepsi-Cola, and other brands such as Mountain Dew and Miranda. PepsiCo and Coca-Cola together hold about a 70% share of the US carbonated soft drink (or CSD) volumes. Noncarbonated beverages: PepsiCo’s noncarbonated beverage portfolio includes leading brands such as Tropicana in the juice category and Aquafina in the bottled water category. The company’s Naked Juice brand comprises premium juices and protein smoothies. The company also sells ready-to-drink teas such as Lipton and coffee products through joint ventures with Unilever and Starbucks. In the fast-growing sports and energy drinks category, the company owns the popular Gatorade brand. Because of continually declining carbonated sales volumes and rising health awareness, PepsiCo is looking to expand into healthier beverages. PepsiCo’s Tropicana brand launched three new flavors of Farm stand 100% juice, which is made of one serving of fruit and one serving of
  • 32. Page 31 vegetables per 8 ounces. PepsiCo’s Naked Juice introduced the Chia Sweet Peach and Chia Cherry Lime flavors, which include chia seeds that are rich in omega-3 oils, antioxidants, protein, and fiber. Naked Juice also introduced the Kale Blazer with green vegetables. Food section also consists of many categories of products. Snack foods: PepsiCo’s Frito-Lay unit manufactures some of the most popular snacks, including Lay’s potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips and branded dips, Ruffles potato chips, Fritos corn chips, and Santitas tortilla chips. Frito-Lay North America’s joint venture with Strauss Group manufactures Sabra refrigerated dips and spreads. Health food: In 2001, PepsiCo merged with The Quaker Oats Company. Today, the company’s food offerings comprise ready-to-eat cereals, rice, pasta, dairy, and other products. Key brands include Quaker oatmeal, Quaker Chewy Granola Bars, Cap’n Crunch cereal, Life cereal, and Rice- A-Roni side dishes. With consumers shifting to healthier foods, PepsiCo is focused on developing new products with lower sodium and fat levels. The company is also using new technologies such as air popping to bring out lower-fat products. In air popping, the snacks are heated and pressurized until they pop. Since 2013, the company has introduced the following three air-popped potato chip products: Walkers Pops in the United Kingdom, Smith’s Popped in Australia, and Lay’s Air Pops in the United States. These air-popped chips contain half the fat of regular potato chips. PepsiCo’s nutrition portfolio: PepsiCo Inc.’s (PEP) nutrition business has been growing significantly over the past few years. In 2013, the company’s nutrition business represented about 20% of PepsiCo’s net revenue. PepsiCo has the following four core nutrition brands:  Quaker  Tropicana  Gatorade  Naked Juice
  • 33. Page 32 PepsiCo is expanding its portfolio of nutritional products and looking for entry into new product categories such as dairy, hummus and other fresh dips, and baked grain snacks. Healthier variants: PepsiCo is also working to improve the health quotient of its existing snacks and beverage products. The company aims to reduce the average amount of saturated fats per serving in key global food brands by 15% by 2020 and reduce the average amount of sodium per serving in food products by 25% by 2020, compared to 2006 levels. In the beverage category, PepsiCo added many new low- and zero-calorie variants. For instance, PepsiCo Mexico reduced sugar in Miranda by 25% per serving in 2013.In September 2014, the three major soft drink makers, The Coca-Cola Company (KO), PepsiCo, and Dr Pepper Snapple Group, Inc. (DPS), pledged to reduce calorie consumption in sugary drinks in the United States by 20% by 2025. The industry leaders plan to achieve this goal through packaging changes, reducing serving sizes, expanding low- and no-calorie drinks products, and using its marketing skills to educate customers. PepsiCo is also acquiring or entering into alliances with companies that own healthy products. For instance, in 2011, PepsiCo acquired Wimm Bill Dan Foods, a leading Russian company in the dairy category. Beverage products offered by PepsiCo India Holdings Pvt. Ltd. Bangalore: 1. Carbonated soft drinks: Pepsi, Mirinda, 7up, Mountain Dew. 2. Non-Carbonated fruit based drinks: Slice, Tropicana twister Orange/apple taste. 3. 100% fruit Juices: Tropicana 100% fruit juice. 4. Packaged drinking water: Aquafina. 5. Soda drinks: Lehar Evervess Soda. CUSTOMERS OF PEPSICO PepsiCo’s customers include authorized bottlers and independent distributors, including foodservice distributors and retailers. PepsiCo normally grants its bottlers exclusive contracts to
  • 34. Page 33 sell and manufacture certain beverage products bearing its trademarks within a specific geographic area. These arrangements provide PepsiCo with the right to charge its bottlers for concentrate, finished goods and Aquafina royalties and specify the manufacturing process required for the product quality. Since PepsiCo does not sell directly to the end consumer it relies on and provides financial incentives to its customers to assist in the distribution and promotion of its products. For its independent distributors and retailers, these incentives include volume based rebates, these incentives are referred to as bottler funding and are negotiated annually with each bottler to support a variety of trade and consumer programmes, such as consumer incentives, advertising support, new product support and vending and cooler equipment placement. Retail consolidation and the current economic environment continue to increase the importance of major customers like restaurants, shopping malls like Reliance fresh, More, etc. COMPETITORS INFORMATION PepsiCo competes with global, regional, and private companies across the food and non-alcoholic beverage space. In the food industry, the company’s rivals include ConAgra Foods, Inc. (CAG), Kellogg Company (K), Kraft Foods Group Inc. (KRFT), Mondelez International, Inc. (MDLZ), Snyder’s-Lance, Inc. (LNCE), and Nestlé S.A. (NSRGY). In the non-alcoholic beverage industry, the Coca-Cola Company (KO) is PepsiCo’s closest rival. Other peers in the beverage industry include Dr Pepper Snapple Group, Inc. (DPS), Cott Corporation (COT), Red Bull GmbH, and Monster Beverage Corporation (MNST). Coca-Cola: In competition to Pepsi Company, Coco- Cola is the only major organized company which is providing toughest competition in terms of variety of products, quality of products and market share in the industry. Coco-Cola has 39 bottling plants in India PepsiCo. Brands Coca-Cola Brands Pepsi Coke 7-up Thumps up Mountain Dew Sprite 7up Ice Citra Mirinda Orange Fanta Mirinda Lemon Limca Slice Maaza Aquafina (water) Kinley(water) Lehar Soda Kinley(soda) Diet Pepsi Diet Coke Duke Soda Tin
  • 35. Page 34 which manufactures seven brands of the company and the different brands of Coca-Cola are Coke, Thumps Up, Maaza, Fanta, Limca, Sprite and Kinley Soda. Coco-Cola Company re-entered India in the year 1993 and in order to gain market share the company acquired various top selling brands in the Indian market like Maaza, Limca, Citra, Gold spot etc. from Parle India Pvt. Ltd. and Thumps up from a local company. The major competitor of PepsiCo is Coca-Cola along with local/unorganized sector. FUNCTIONAL DEPARTMENTS There are 5 main functional departments in PepsiCo.  Marketing Department  Finance and account Department  Purchase & sales Department  Service Department  Personnel Department Marketing Department: This department is responsible for all marketing aspects of retail operation. They are the one who are mostly into all with the current and prospective customers. This department is headed by general manager who is assisted by 2 assistant managers who are in charge of field sales and other corporate sales. They are further assisted by a team of field sales executive, and sales executive. Finance and Accounts Department: This department is responsible for preparation of all account financial aspects of the dealership and retail operations. This department is under General Manager who is assisted by a finance manager. Accountants, a cashier, and an EDP/Records officer again assist the finance manager. Purchase & Sales Department: Purchase department takes care of total purchase thorough respective heads to the purchase department. Organization structure of sales department is as shown.
  • 36. Page 35  TDM (territory development manager)  CE (Customer Executive)  PSR (Pre Sales representatives) The number of Customer Executives (CEs) and PSRs depends on the size and structure of territory. Services Department: This department is chained with the responsibility of maintaining service standards. They have to maintain customer satisfaction and after sales service, a long relationship with the customer. It is again headed by General Manager, who is further assisted by the manager in charge of sales and services. Here the main objective is to satisfy the customer. In each and every department this service department plays a major role. Personnel Department: Personnel management department is responsible for offering service and coordination of the different activities of various departments. It is again headed by the General Manager who is assisted by an office manager. It also includes an office secretary, a receptionist, stenographers and housekeeping assistants. The information flows from the higher superiority to the lower subordinate. Objectives of Personnel Department: Growth and satisfaction of the employees of the organization, maintain an organization climate conducive to human growth, satisfaction and contribution and to Unit Manager TDM CE CE PSR PSR TDM
  • 37. Page 36 create an environment for team work, and involvement of all personnel for achieving the company’s objectives. FUTURE GROWTH AND PROSPECTS PepsiCo announced that its targeted investment is of Rs. 33000 cores in India by 2020.Hence this investment will further strengthen PepsiCo’s position as one of India’s leading food and beverage companies. Strategic imitative will fund investments in innovation manufacturing, selling and go- to-market infrastructure and agriculture. Innovation: PepsiCo will continue to expand the range of foods and beverages in its portfolio to cater to the wide and evolving needs of Indian consumers. PepsiCo has a long history of successfully innovating for the Indian market, and PepsiCo India already has organically built eight brands that generate Rs. 1,000 crores or more in estimated annual retail sales (Pepsi, Lay's, Kurkure, 7UP, Slice, Mirinda, Mountain Dew and Aquafina). Manufacturing: PepsiCo plans to significantly increase manufacturing capacity to meet the growing demand for its foods and beverages. PepsiCo and its partners plan to expand their production capacity in India to more than double current levels by 2020. Infrastructure: PepsiCo and its partners plan to ramp up selling and delivery infrastructure throughout the country, with a particular focus on rural market expansion. As part of this strategic initiative, PepsiCo will work with its partners to deploy new technologies designed to enhance service to retail customers and increase efficiency across go-to-market systems. Agriculture: Resources will be allocated to expand PepsiCo's well-known collaborative farming program, which provides farmers with access to good quality seeds, technical agronomic expertise, bank loans and crop insurance. This program currently reaches 24,000 farmers, positively impacting their income and social standing in addition to strengthening the reliability and quality of PepsiCo's supply chain.
  • 38. Page 37 PepsiCo Chairman and Chief Executive Officer IndraNooyi said: "Most importantly, our investments will be aligned with India's interests," Nooyi added. "We will be guided by Performance with Purpose, PepsiCo's vision for building a profitable and sustainable 21st century corporation that is a good investment for our shareholders, a good environment for our employees, a good citizen in our communities and a good steward of our planet's resources. We believe Performance with Purpose will drive sustained value for PepsiCo and positively contribute to India's development well into the future." SWOT ANALYSIS OF PEPSICO Strengths:  One of the most popular and globally recognized brands in food and beverage industry.  Have popular subsidiary brands like Lays, Gatorade, Pepsi, Quaker, Tropicana etc.  2nd in the world as leading distributor of carbonated drink.  PepsiCo’s cold drink brands are famous among youngsters. The youngsters are aware of most of the PepsiCo brands in the market.  Relationship with the local community is an added advantage, as they look into the development for their people as stated in their mission.  The company has established good bargaining power with the retailers by supplying necessary cooling equipment’s thus locking them in as exclusive outlets.  Invest more in research and development for more affordable and nutritional products.  Reduced use of water by recycling & purification system. They reuse 75% of water used in production. The company made this possible through innovative irrigation practices like direct seeding, community water recharging initiatives, and by reducing the consumption of water in its manufacturing facilities.  Offers extensive variety of product lines.  Different flavors were created that tailors to the country they are sold in. The company finds out the taste that the Indians are fond of and introduces a new taste for the fulfillment of their existing need.  High level of customer loyalty for most of the brands within product portfolio.
  • 39. Page 38  CSR activities through PepsiCo Foundation, which works in the sector of education, health, water conservation etc.  Towards product reformulation – reduce salt, eliminate trans-fat which diminish calories.  Strong marketing strategies like using famous celebrities. Eg- Tiger Wood Weaknesses:  Supply chain inefficiencies that affect retailers, were solved too slow i.e. there happens delay in delivery of stock to retailers.  Market share was low in the soft drink industry and continued to decline.  Lower sales of non-carbonated beverages outside North America.  Strong competition in the aerated drinks segment from Coca-Cola leads to high brand switching.  High level of dependence on large supermarkets such as Wal-Mart.  Aquafina tap water scandal.  Tropicana kids orange juice product recall.  The company lags behind its competitor Coca Cola in taste and providing credit to retailers, which has made them, lose out significantly in certain regions.  The sale is dependent inversely on monsoons.  There is no proper visibility in market for consumer awareness of each product of PepsiCo.  Lack of schemes for retailer and consumer in comparison to Coca Cola.  Delay in replacement of damaged bottles makes the retailers change their stocking decision of PepsiCo products. Opportunities:  The acquisition of anchor bottlers in North America and Europe, enable them to drive growth, dynamic future and more integrated supply chain.  Consumers are leaning towards healthier foods. With the use of more healthy supplements PepsiCo can address the issues related to health concern.  With the use of technologies of recycling water, PepsiCo can start planning its operations in African continent.  Demand for products are high as they were well recognized.
  • 40. Page 39  Expand further into the international market. The opportunity for growth in developed countries is greater as per capita consumption is high.  Increasing presences in the emerging markets in developing countries such as China and India.  Consistent growth.  Further research in innovations to make better-for-you snacks, and to produce sweeteners that would lower the calorie content in drinks.  To improve its brand image by involving in more CSR activities to benefit the local communities.  The untapped rural markets have a vast potential for smaller volume soft drink packs which currently contribute only 15% of company sales.  There is a huge opportunity for increasing the market sales of packaged drinking water Aquafina; fruit based juice Tropicana, Tropicana twister and other variants of Tropicana.  There is an opportunity to increase the sales of tetra-packs of slice.  Main sponsor of the Indian Premier League. Threats:  Declining interest in some products such as the carbonated beverages as the public is moving towards healthier choices.  Health consciousness amongst people can take a toll on its aerated drinks and snacks food markets.  New products are constantly entering the market that competes directly with the Pepsi products. Many of these products offer same benefit but lower price.  Constant competition with Coca cola and other brands pose a threat to their sales and market share.  Compliance with different government regulations and norms in different countries.  Inflation, economic slowdown and instability causes decline in the purchasing power of consumers.  High amount of sugar or salt in products being criticized by government and non- governmental health organizations.
  • 41. Page 40  Water scarcity.  Public backlash as a result of accusations about groundwater over utilization and high pesticide levels in soft drink products.  Change in consumer tastes.  Less visibility may change the people thought for consuming the PepsiCo product as such products comes with impulse purchases.  Lack of distribution channel effectiveness will hamper the sales of PepsiCo products in the market.  The competition from established brands like Bisleri, Kinley, Royal Challenge, Bagpiper, Himalaya, Kingfisher and local brands like Bailey, Oxyrich etc. These brands are very stiff in packaged drinking water segment. They are a big threat to Aquafina as they offer large margin of profit per bottle to the retailers.  Local drinks (fruit based, milk based etc.) and drinks from Parley Agro (Frooti and AppyFizz), Dabur (Dabur Real fruit juices) and Amul’s milk based products are also big threat for fruit based brands like Slice and Tropicana of PepsiCo. Innovation is the bedrock of things that PepsiCo drives in HR: Innovation is at PepsiCo’s heart and it is an integral part of its product portfolio. In India region it has beverage innovations for local tastes like Pepsi Atom, Tropicana coconut blends and snacks like Kurkure range and Quaker NutriPoha&NutriUpma. In terms of people practices, while it emphasize on innovations, it also gives equal focus and importance to adoption of best practices across geographies. For example, its HR core processes in India has become best practices now. PepsiCo globally gives a lot of emphasis on manager quality and the institutionalization of Manager Quality Performance Index (MQPI) in India is a best practice that is now being replicated globally. Similarly its initiative- ‘ICARE’ (Include, Coach, Appreciate, Respect, and Empathize) is now a best practice that has the potential of being adopted within the PepsiCo global system. The underlying belief is that by exhibiting ICARE behaviors, a manager will be able to inspire team members to deliver bigger, better and faster results.
  • 42. Page 41 Keeping true to its philosophy of attracting best talents, it has implemented an IT-enabled world class recruitment management system. This system is a one-stop shop for the entire candidate management experience, includeg linkage to job portals and agency portals. Therefore, innovation lies in most of the things that we drive in HR. Being a global HR team, it believes in best practice sharing and it has Talent Sustainability Teams where HR employees across sectors work for various projects. It has observed trends in learning process of employees and have made huge progress in creating online training process under the global umbrella of PepsiCo University. It has functional and leadership cites across the functional domains and can match any international curriculum. Leadership at PepsiCo: PepsiCo globally follows a robust leadership and individual effectiveness model that works as a beacon for all its leadership development interventions in terms of key competencies and associated behaviors, which are espoused by all its associates to meet its performance goals. It is designed to reinforce its inclusive and value-based culture and its focus on excellence and results. Important pillars and imperatives on which leadership is built upon are individual’s ability to “Set the agenda”, “Take others along” and “Do things in the right way”. Its holistic approach towards leadership and career progression is governed by demonstration of results, functional excellence, leadership capability and knowing the business and gaining relevant critical experiences. PepsiCo India has over a period of time built a very strong pipeline by giving people a mix of different critical experiences within PepsiCo India and internationally and continues to do so. Accelerated leadership development programs customized for the regions are the medium practiced by us to develop and groom internal leaders at all levels. These development programs, known as academies, are created and conceptualized with the help of top management Institutes and consultants to ensure best in class learning. With regard to other learning and development opportunities, it is working towards integrating its learning processes globally and provide employees with high-end development opportunities in line with the business realities. These programs shall be aimed at honing up
  • 43. Page 42 employees skills that will set them up for future success. Focus would be to develop leaders and employees at large in areas of digital skills, agile thinking and skills to operate in global environment. Unique talent market in AMEA: Asia, Middle East & Africa (AMEA), the sector that India is a part of, is represented by the most diverse set of markets in the world. India is a great crucible to learn and develop cross cultural thinking since each region is like a different country with its own language, cultural identity, food and habits. With a median age of 28, the country offers immense opportunities for young Gen Y graduates. While the need for education has emerged as one of the key drivers of this growth, there is a huge skill gap that needs to be bridged for India to fully leverage the power of its unique demographic dividend. PepsiCo currently leverages several agencies working in line with government policies to mobilize talent at the grassroots and make them ready. Project Funnel is its program at India region to proactively bridge the potential talent gap at front line. Unified face of HR: It is a one PepsiCo HR team for the company. In today’s virtual world, distances are not that much of a concern. Its BIS (Business Information Service) team has worked significantly to enable regions and offices integrated through tele presence meeting rooms, web casts and other virtual medium. It is constantly in touch with each other transcending boundaries. For example, at AMEA sector level, it made Talent Sustainability Teams on various important elements of HR functioning. These teams had representation of HR managers from different countries and they regularly meet through web-based tools. These teams have been successful in drawing best practices from different countries and suggest integrated and common processes for the whole sector. It is quite excited about achievements of these Talent Sustainability Teams, which has brought people together and a distinct change in the way we operate and bond. Structure of the HR department at PepsiCo: Its values promote delivery of sustained growth through empowered people acting with responsibility and building trust and company abide by this culture. It is not possible for any global organization to work efficiently and effectively without empowering people at local levels. Structures in the organizations are enablers in decision making and that’s what we follow and practice.
  • 44. Page 43 One of its guiding principles is diversity and inclusion, which rests heavily on collaborative efforts. Teams take decisions in a very collaborative manner and we ensure enough communication amongst managers to keep everyone concerned on a common grid. PepsiCo, as an organization, are at different stages of evolution in different countries or regions. Hence, structures are based on the need of delivering business results. Nonetheless, its approach across all the geographical locations is very much global and integrated. Diversity challenges in the organization: At PepsiCo, it has unique and talented individuals who represent a variety of cultures and backgrounds. Its diversity is one of its core strengths and a competitive business advantage. It is committed to foster and value a diverse and inclusive work environment — one that allows each and every one of its employees to achieve professional growth and fulfillment in all they do. Challenges with regard to diversity differs from geography to geography, in certain parts of the world if there is an issue of mindset in certain other areas you may find concerns around infrastructure. In its case, its regional teams work closely with the businesses and local forums to overcome these issues. As part of this commitment, in India, it now has a cross-functional Diversity & Inclusion (D&I) Council that has been actively working on creating a more diverse and inclusive work environment, with a holistic focus on building infrastructure, talent acquisition retention and more importantly building an inclusive culture to not only increase gender diversity but also a gender intelligent organization.
  • 46. Page 45 PEPSI IPL 2015 OBJECTIVE OF THE STUDY Analysis of the sales of Pepsi products during IPL 2015 ABOUT THE EVENT The Indian Premier League (IPL), currently known as the Pepsi Indian Premier League for sponsorship reasons is an annual Indian Twenty20 cricket tournament, founded in 2008 by the BCCI. It consists of a number of teams which are named after Indian cities and owned by franchises and is held in India, between April and June. The IPL is the most-watched Twenty20 league in the world and is also known for its commercial success. In 2010, the IPL became the first sporting event to be broadcast live on YouTube. The brand value of the 2014 Indian Premier League was estimated to be around US$7.2 billion. The IPL is currently supervised by BCCI Vice-President RanjibBiswal, who serves as the League's chairman and Commissioner.Sundar Raman has been the IPL chief operating officer (COO) since its first season, after he was appointed by the former IPL Commissioner Alit Modi in 2008. Of the 11 teams to have competed since its inception, five have won the title: Kolkata Knight Riders (2 times), Chennai Super Kings(2), Rajasthan Royals (1), Deccan Chargers (1), and Mumbai Indians (1). Chennai Super Kings are the most successful team so far, having won the title twice and have managed to qualify for the finals in every season except in 2009 and 2014. ABOUT IPL 2015 IPL 2015 is the 8th season of the IPL series. The eighth season started on 8 April 2015 and will run until the final on 24 May 2015. There has been a fresh auction of players among teams. This season had to be adjusted around a week late than every year because of the tight scheduling of teams due to the 2015 Cricket World Cup.
  • 47. Page 46 The teams in IPL 2015 includes: 1. Chennai Super Kings 2. Rajasthan Royals 3. Sunrises Hyderabad 4. Mumbai Indians 5.Royal Challengers Bangalore 6. Kolkata Knight Riders 7. Kings XI Punjab 8. Delhi Daredevils. From 2013 season, the American food and beverage company PepsiCo took over title sponsorship for five years valued at ₹396.8 million, and also exclusive beverage supplier for the IPL teams in the 2013 season. INTRODUCTION This is a report showing the analysis of the sales of the Pepsi products during all the matches that happened at the Chinnaswamy Stadium Bangalore during IPL 2015. This will provide a detailed report regarding the sales of the PepsiCo products within the stadium and also the factors that affected the sales of the PepsiCo products in both negative and positive manner. This will also show the comparison between the sales figures of PEPSI IPL 2014 and PEPSI IPL 2015.The matches at Bangalore started on13th April 2015 and ended n 17th May 2015. 7 matches were played at Bangalore out of which 2 matches were washed out due to rain and there was very low sales during those two matches. FACTORS AFFECTING THE SALES Sales is always a dependent variable that depends upon a lot of independent variables. These variables has got a significant and diverse impact on the sales. These factors mainly includes the customer preferences, quality of the product, quantity of the product, price of the product, satisfaction level of the consumers, season, efficient and effective distributing, availability of stock etc., which is general. Here we analyze the sales within the stadium of the PepsiCo products. The factors that affects the Sales of PepsiCo products in the stadium includes the following:  SEASON  COMPETITORS(CCD,PARLE,BRITANIA)  AVAILABILITY OF STOCK  VISI COOLERS IN THE STADIUM  HAWKERS WITHIN THE STADIUM
  • 48. Page 47  KIOSKS IN THE STADIUM  COMMUNICATION These factors have affected the Pepsi sales in a significant manner and as a result the Pepsi sales has gone down when compared to last year’s IPL sales. SEASON March- April is the best selling season for Pepsi since in it is summer and soft drinks demands are at the peak during this period. With IPL going on during the same period, Pepsi has great expectations with its sales during this period. But this time out of 7 matches played at Bangalore 2 got washed out due to the heavy rain in Bangalore city. This has reduced Pepsi’s sales down by about 50% on those rain spoiled days. COMPETITORS The competitors’ products didn’t have a good impact over the sales of Pepsi products. The quality, quantity, price, appearance, attractiveness have a great impact over the sales of Pepsi’s products. There no one like a competitor inside the stadium. A few of kiosks of other company’s includes were Britannia, Café coffee day, papa jones etc. But they were no such a big competitor, Pepsi were getting more sales when compared with them. AVAILABLITY OF STOCK Availability of the stock within the stadium is an important factor that would affect the sales. There should be sufficient quantity of back up stock in the stadium premises to satisfy the customer demands in case there is unexpected rise in the demands of Pepsi products. There were a few shortages for Slice Alphonso and Tropicana Cranberry’s. Other than that there were enough stocking the warehouses. Even though there were enough stocks there was lack of proper distribution from the warehouses to all the stands and rooms in the stadium. Proper stocks didn’t reach at the right time and at the right place where it was needed. There was lack coordination between the people at the warehouse and the people at each stands and rooms.
  • 49. Page 48 VISI COOLERS Each and every kiosk inside the stadium and the stadium premises had one cooler each and minimum of two coolers placed in the hospitality rooms. Most of the people prefer chilled beverages rather than having them at normal temperature. So the VISI coolers were very much essential. The visi coolers were functioning properly and in some stands there were reports that there were stinky smells coming out of the coolers. As a result of this many people hesitated to buy them and they became useless. HAWKERS INSIDE THE STADIUM The hawkers are the people who carry Pepsi products and sell them in the stands. There were about 160 hawkers from Pepsi inside the stadium. About 70% of the sales are done by the hawkers. They were good and but lacked sincerity and were indulged into a lot of malpractices. Most of them were lazy. The sales would have been more if they had done there more work with enthusiasm. KIOSKS IN THE STADIUM A kiosk means a small stall that is setup for the purpose of sales. There were about 27 Pepsi kiosks inside the stadium. There was good sales at each and every counter. The only problem that was faced at each kiosk was insufficient back up stock. The stocks got over when the demands were at the peak. COMMUNICATION There was lack of proper communication between the people at the kiosks, stands and hospitality with the people at the warehouse. Even when messages conveyed regarding the stocks, there were no proper responses from the part of the people at the warehouse. SALES REPORT The sales report of each matches are given below, this report intimates the range of sales occurred during each matches from the kiosks placed inside the stadium. This report helps in identifying the
  • 50. Page 49 most selling stands around the stadium at Banglore. The sales were calculated on the basis of the cups sold during the match days. Each cups were sold at Rs.50 both 450 ml and 300 ml so the number of cups sold per match multiplied with 50 gives us the revenue during each match. Due to rain some matches were delayed and cancelled so there were less sales as expected by the company. ACCREDITATION The first phase of work is to complete the accreditation of the vendors and employees for the IPL matches to be started from this Monday. This was mainly for the security purposes to be ensured in the stadium. As a part of this we had to feed the details of the PEPSI vendors, promoters, and hawkers into the Bookmyshow website. There were nearly 200 members enrolled for Pepsi and around 50 for Lays. My second phase of work as per the checklist is to go the stadium and see that there are coolers installed, the stock for the matches are arrived, if not arrange them call the respective PSR's and to make an analysis of the overall stock sold during the match days and ensure that there is hike in sales.
  • 51. Page 50 PEPSI IPL -2015-SALES DATA MATCH -1 MATCH 2 0 200 400 600 800 1 CUPS SALES G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2 F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3 M4 P1 P3 1 P3 2 1115 636 0 200 400 600 800 1000 1200 1 CUP SALES G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2 F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3 M4 P1 P3 1 P3 2
  • 52. Page 51 MATCH 3 MATCH 4 0 200 400 600 800 1000 1200 1400 CUPS CUPS SALES G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2 F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3 M4 P1 P3 1 P3 2 0 200 400 600 800 1000 1 CUP SALES G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2 F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3 M4 P1 P3 1 P3 2
  • 53. Page 52 MATCH 5 MATCH 6 0 200 400 600 800 1000 1200 CUPS CUP SALES G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2 F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3 M4 P1 P3 1 P3 2 0 200 400 600 800 1000 CUPS CUP SALES G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2 F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3 M4 P1 P3 1 P3 2
  • 54. Page 53 MATCH 7 FINAL SALES REPORT 485 483 0 200 400 600 800 1000 1200 1400 1 CUP SALES G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2 F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3 M4 P1 P3 1 P3 2 6975 15396 15716 11254 10679 12417 15112 TOTAL SALES 1 2 3 4 5 6 7 12417 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 TOATL SALES TOTAL SALES 1 2 3 4 5 6 7
  • 55. Page 54 MATCH CUP SALES REVENUE TOTAL 13/4/2015 6975 348750 4377450 19/4/2015 15396 769800 22/4/2015 15716 785800 29/4/2015 11254 562700 2/5/2015 10679 533950 6/5/2015 12417 620850 17/5/2015 15112 755600 348750 769800 785800 562700 533950 620850 755600 OVERALL SALES MATCH 1 MATCH 2 MATCH 3 MATCH 4 MATCH 5 MATCH 6 MATCH 7
  • 56. Page 55 FINDINGS AND SUGGESTIONS  Hawkers are the main source of sales so more hawkers more sales.  From the previous sales report we can find the most selling kiosks so if more hawkers are assigned in those stands the sales can be increased.  Motivation of hawkers should be done like providing them incentives and the most selling kiosks should be rewarded.  Stocks should be properly available if less stocks less sales.  Seasonal variations is a major factor during the sales, most of the matches were delayed and cancelled due to rain. This affected the sales this year.  Technicians and loaders should be more responsive and initiative in doing their work.  There should be sufficient number of lids, straws, apron’s and cleaning materials available to each kiosk’s.  Mountain Dew was the most selling brand during this IPL season mainly because each of the kiosk were branded with Mountain Dew.  The gloves provided were not efficient and not of good quality so the hawkers refused to wear the gloves.  Malpractices such as reselling the cups, selling for more price can be avoided by keen and vigilant supervising.  When the stocks are placed inside the coolers customers demand for those bottles rather than in cups and there is a big difference in the price variation too.  Safety of the coolers are to be ensured, in some stands the products were looted and that is a loss for the company.  Ice cubes are not required in some stands so the promoters should ensure ice cubes are utilized properly.
  • 57. Page 56 RECOMMENDATIONS Assuming the kiosks will be branded with Mountain Dew next IPL 2016, the changes that can be implemented to push the sales are: 1) Implementing combos with tickets such as attracting the customers by free soft drinks in the stands .(free coupons tickets) 2) The sales can also be increased by including different price range of products. 3) Improving the promotional activities such as more flex boards branded with Mountain Dew in each stands. 4) Collaborating soft drinks with Lays and sold as a combo. 5) More promotional activities of supporting the home team RCB. 6) Renovating the kiosks positions in the stadium, some kiosks in the food court were not properly positioned and they were not visible to the customers so they have to be positioned in such a way that they are visible to the customers. 7) If we can try shifting the position of free drinking water facility near to the kiosks that is also a feasible provision of increasing the sales. 8) Allocation of more hawkers in the most selling kiosks more hawkers can bring more sales in the lower stands. 9) Rewarding and shuffling talented hawkers to stands which are not bringing sales. 10) Incentives – major factor in hiking the sales from hawkers, pressure on the supervisors of each stands, assigning targets to them. 11) Promote a new use of the product and enhance its Price war with competitors. 12) Public Relations and Brand Image
  • 58. Page 57 Pricing of Pepsi Lays Combo for PEPSI IPL 2016  Less Margin more turnover strategy  By pricing the combo in the price range of Rs.70 ( Lays Pepsi)  At this pricing the customers gets attracted to the product as well as the price.  Pull strategy. Customer will be attracted to the product of its price.  Word of mouth –Marketing Technique.  Pricing at Rs.75 or Rs.80 won’t attract the customers so we have to follow a PUSH strategy.  Reduction of hawkers INCENTIVE SCHEMES for PEPSI IPL 2016  Hawkers are allotted with 500 cups per match but most of them are not able to sell even this 500 cups. A new incentive scheme should be launched to attract and motivate the hawkers and thereby increase the sales.  Hawkers are now paid with Rs.400/match even if he sells 100 cups or 500 cups.  In the new incentive scheme : hawkers who sell more than 500cups should be paid Rs.100 extra so they feel motivated and thus the sales increases because 70% of the sales during the match comes from the hawkers
  • 59. Page 58 BIBLIOGRAPHY 1) http://www.pepsiindia.co.in 2) www.pepsico.com 3) http://en.wikipedia.org 4) www.pepsiproductfacts.com 5) www.ipl2015.com 6) www.bookmyshow.com