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Impact of TV advertisement


                           EXECUTIVE SUMMERY



This project report is on the “Impact of advertisement (Pepsi TV promo add)”on

retailer to know about the awareness about the advertisement. The project was

carried in Mysore with sample size of 200 retailers.



There are two variables dependent and independent variables:



Dependent variable: Sales is dependent variable because when advertised properly

the consumers are induced. Awareness is also related to sales because if the retailers

are aware of the advertisement they can confront about the benefits to the

consumers.



Independent variable: Here independent variable is advertisement.



Therefore the project is done to check the awareness level of the advertisement

among the retailers.




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Impact of TV advertisement


                                INTRODUCTION




         The project was started from May 15th to July 15th 2006 for Pepsi Co

India. It was done in Mysore.


The project was carried out due to the criteria of the university after the

completion of M.B.A. second semester.


The main objective of this in-plant training was to get an exposure to the

working environment in an organization. This was an opportunity for us to

relate concepts learnt by us to the practical application in the organization.


This in-plant training provided us in interacting with the highly experienced

managers and to improve our practical knowledge.




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Impact of TV advertisement
     ABOUT THE PLACE WHERE THE PROJECT WAS DONE


           Mysore city is at 770m above sea level and 140 kms from Bangalore. It is

also known as the City of Palaces, Mysore retains a quaint charm that never fails to

enchant. It is situated in the southern part of the Deccan Plateau. From ancient

times, this district has played a significant role in the history of South India.


  Mysore District is a popular tourist destination, offering several attractions

ranging from the royal Splendour of Mysore City and its fabulous Dasara Festival

to exquisite temples, pilgrimage Centers and scenic spots.


        Mysore today, is a pleasant city with an old world charm, contributed by its

broad shady avenues, well laid out gardens, fine buildings and a salubrious climate.




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Impact of TV advertisement




              STATEMENT OF THE PROBLEM




UNAWARENESS OF THE PEPSI T.V. AD. PROMO. AMONGST

                       THE RETAILERS




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                  PURPOSE OF THE STUDY




  1. TO INCREASE THE AWARNESS LEVEL AMONGST THE

    RETAILERS ABOUT THE PEPSI T.V.AD.PROMO.

  2. TO KNOW IF DISPLAY COULD DRIVE THE SALES.

  3. TO KNOW WHO ARE THE CUSTOMERS FOR 2 LITRE BOTTLES




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                        SCOPE OF THE STUDY


 The scope of the study is to understand:


1) The Pepsi markets share in Mysore.

2) Awareness level about Pepsi T. V. ad. Promo amongst the retailers.




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                    LIMITATIONS OF THE STUDY


1) Due to time constraints the study is restricted only to the retailers and not of

   consumers.

2) Amongst the retailers only the following are considered:


   a. A & B Class bakeries

   b. Supermarkets

   c. Few provision stores


3) The coverage of objective of study is limited to the extent of

   information given by the company.


Inspite of all above-mentioned limitations, every effort has been made

effectively and report is prepared to best of my knowledge.




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                        OBJECTIVE OF THE STUDY

The objective is to check the awareness of Pepsi T. V. ad. Promo among the retailers

/ traders.

This was done considering the following,

     1) Usually the retailers will be in their shops or on business.

     2) They were confused about the ad. I.e. they were thinking that there is Pepsi

         Channel to be launched.

     3) The ad. created hype in the minds that Pepsi is going to come out with the

         new T. V. known as Pepsi T. V.

     4) Many retailers were unknown about the benefits to be given to the

         consumers.

                 Therefore, as the retailers are the means foe sales they should be

         confronted about the advertisement and the benefits to be given to the

         consumers.




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Impact of TV advertisement




              CHAPTER - II




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                         ORGANISATION PROFILE


                                   HISTORY


Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and

Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay found

PepsiCo, Inc., through the merger of the two companies. Caleb Bradham, a New

Bern, N.C. pharmacist, created pepsi-Cola in the late 1890s. Frito-Lay, Inc. was

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

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

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

M. Kendall is president and chief executive officer.


Pepsi-Cola began selling its products outside the United States and Canada in the

mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly

beginning in the 1950s. Today, PepsiCo beverages are available in more than 170

countries and territories. Brands include Aquafina, Gatorade and Tropicana.


The new company reports sales of $510 million and has 19,000 employees.




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                            CORPORATE PROFILE


           PepsiCo is the world leader in convenient food and beverages with 2005

 revenues of more than dollar 32 billion and more than 157000 employees.


           The company consists of Frito-Lay North America, PepsiCo Beverages

North America, PepsiCo International and Quaker Foods North America.

PepsiCo brands are available in nearly 200 countries and territories and generate

sales at the retail level of about $85 billion.


 Many of PepsiCo's brand names are more than 100-years-old, but the

 corporation is relatively young. PepsiCo was founded in 1965 through the

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

 PepsiCo merged with the Quaker Oats Company, including Gatorade, in 2001.


 PepsiCo offers product choices to meet a broad variety of needs and preference

 -- from fun-for-you items to product choices that contribute to healthier

 lifestyles.


 PepsiCo owns some of the world's most popular brands, including Pepsi-Cola,

Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our

brands are available worldwide through a variety of go-to-market systems,

including direct store delivery (DSD), broker-warehouse, and food service and

vending.


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Impact of TV advertisement




                             PEPSI IN INDIA


Pepsi gained entry to India in 1988 by creating a joint venture with the Punjab

Government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas

India Limited. This joint venture marketed and sold Lehar Pepsi until 1991

when the use of foreign brands was allowed; Pepsi bought out its partners and

ended the joint venture in 1994. The brand was trademarked on June 16, 1903,

though the drink was first made in 1898, by pharmacist Caleb Bradham.




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Impact of TV advertisement




 PEPSI BRANDS AVAILABLE IN INDIA



          1. PEPSI

          2. PEPSI CAFÉ CHINO

          3. DIET PEPSI

          4. 7 UP

          5. MIRINDA

          6. SLICE

          7. MOUNTAIN DEW

          8. AQUIFINA

          9. LEHAR SODA




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                     Product Profile




   The price of the product two liters Pepsi pet

                 bottle is Rs. 45/- sales price

                 Rs. 42.85 ps retailers price

Contents

Sweetened

Carbonated water

No Fruit juice

Sugar

Buffering agents

Contains added flavours

1 case contains 9 bottles




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PEPSI CO’s MISSION

PepsiCo’s mission is “To be the world's premier consumer Products Company

focused on convenient foods and beverages. We seek to produce healthy

financial rewards to investors as we provide opportunities for growth and

enrichment to our employees, our business partners and the communities in

which we operate. And in everything we do, we strive for honesty, fairness and

integrity.”




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Impact of TV advertisement



                           Corporate Citizenship


At PepsiCo, we believe that as a corporate citizen, we have a responsibility to

contribute to the quality of life in our communities. This philosophy is expressed

in our sustainability vision which states: “PepsiCo’s responsibility is to

continually improve all aspects of the world in which we operate – environment,

social, economic -- creating a better tomorrow than today.”


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

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

shareholder value by making PepsiCo a truly sustainable company.




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Executive Office PepsiCo, Inc.


700 Anderson Hill Road

Purchase, NY 10577

(914) 253-2000


                          PepsiCo Headquarters


PepsiCo World Headquarters is located in Purchase, New York, approximately

45 minutes from New York City. Edward Durrell Stone, one of America’s

foremost architects, designed the seven-building headquarters complex. The

building occupies 10 acres of a 144-acre complex that includes the Donald M.

Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden

setting.




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                                    Divisions


The company reports their operating results as follows, by divisions:


   •   Frito-Lay North America (FLNA)

   •   PepsiCo Beverages North America (PBNA)

   •   Quaker Foods North America (QFNA)

   •   PepsiCo International (PI)




                   PEPSICO REPORTING STRUCTURE


                                    PEPSICO




          FLNA                PBNA                QFNA                  PI




                           PEPSI CO’s COMMITMENT



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“Diversity isn’t just the right thing to do. It’s the right thing to do for our business,

and we are committed to making diversity and inclusion a way of life at PepsiCo.


In our business, understanding different cultures is a major advantage. In fact,

we view diversity as a key to our future. Our brands appeal to an extraordinarily

diverse array of customers. And they are sold by an equally diverse group of

retailers.


 To truly understand the needs of our customers and consumers -- and succeed

 in the marketplace -- PepsiCo must reflect that diversity in our employees, our

 suppliers and in everything we do.


 Offering a workplace where diversity is valued helps us build the top-quality

 workforce so crucial to our success -- by enabling us to attract and retain great

 people from a wide spectrum of backgrounds.”




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                                Community


PepsiCo committed to celebrating and supporting diversity in its community

through its corporate giving and community programs. PepsiCo gives to the

community through the PepsiCo Foundation, the PepsiCo Community Affairs

Department and PepsiCo divisions. The PepsiCo Foundation and its operating

divisions gave grants to more than 1,000 community organizations, of which a

significant portion were organizations championing diversity. It also support

organizations through gifts in-kind, such as product, premiums, printing,

meeting   arrangements,   equipment    donations,   and   support   of   events,

conventions, journals and meetings.




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                                     Customers


PepsiCo is committed to marketing its products to all groups, treating all

customers with respect, sensitivity and fairness, while providing some of the

greatest products on earth. Early in its history -- as far back as the 1940s -- Pepsi-

Cola recognized the importance of diversity. Pepsi pioneered targeted marketing

and national lifestyle advertising featuring minorities. It developed education and

sports programs spotlighting minorities. PepsiCo partnered with many groups to

create programs that contribute to minority communities. It sponsored major

music tours by entertainers such as Tina Turner. PepsiCo support minority

media and interests. Over the years, its success has been recognized with

numerous awards. Most importantly, its products are purchased and enjoyed by

all groups of consumers.




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Impact of TV advertisement



                               Shareholders


PepsiCo (symbol: PEP) shares are traded principally on the New York Stock

Exchange in the United States. The company is also listed on the Amsterdam,

Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash

dividends since the corporation was founded.




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                         Sustainability vision

“PepsiCo responsibility is to continuously improve all the aspects of the world in

which they are operating i.e. that is environment social and economical with an

intension of creating better tomorrow than today”.


This is the core part of the vision.




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                        ENVORONMENTAL POLICY


    1. PepsiCo complies with applicable legal and regulatory requirements and

        companies standards and conduct regular audits to verify compliance

    2. PepsiCo annually review companies performance in implementing the

        policy

    3. PepsiCo reviews policy periodically and updates as needed.

    4. It considers potential environmental impacts in daily decision making

        process

    5. Pepsi co applies sound environmental management practices.

    6. Pepsi encourages conservation of natural resources, recycling and

        pollution control to ensure cleaner air and water

    7. Pepsi co monitors emerging issues and keep abreast of regulatory

        changes technological innovation and stakeholders interest.

    8. PepsiCo works with licensed bottlers suppliers and customers top reduce

        environmental impacts on its product throughout their life cycle


As the part of their environmental policy Pepsi Co India has


   1. Donated generously to the Tsunami victims.

   2. The company has also developed a Teppada village NH-4 Begur

       surrounding Nelamangala Plant and the company has also been providing

       free water to this village.




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              PEPSI CO’s SALES VISION:



 To build an exceptional customer focused sales team, which will consistently

 exceed customer expectations by delivering executional excellence in the market

 place through best selling systems and process.




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                      HONOURS FOR 2006

 •   PepsiCo named winner of the best-integrated marketing campaign during

     the Globes Awards sponsored by the Marketing Agencies Association

     (MAA) Worldwide. Pepsi Wins Award for Indian Cricket World Cup

     Campaign by Marketing Agencies Association Worldwide.

 •   PepsiCo Recognized as one of the "20 Most Influential Multi-Nationals in

     China." by China Business News.

 •   Institutional Investor Releases 'Best CEOs' list; Reinemund Tops Beverage

     Leaders.

 •   Chinese College Students Name Pepsi Among Top Ten Brands.

 •   Fortune Magazine calls PepsiCo "one of the best run companies in the

     country.”

 •   PepsiCo Wins Sam’s Club ‘Supplier of the Year’ Award.

 •   Institutional Investor Identifies PepsiCo as one of America’s Most

     Shareholder-Friendly Companies.

 •   PepsiCo Ranks as 15th Most-Admired Company on Fortune's List of the

     Top 20.

 •   Gatorade Mexico Named Wal-Mex 'Supplier of the Year'.

 •   PepsiCo Officially Observes $100 Billion Market Cap Milestone.




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           Distributional Channel of PepsiCo India (COBO’s)



                             FACTORY




                        DISTRIBUTORS




                          RETAILERS




                          CONSUMERS




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             ORGANISATIONAL CHART OF PEPSICO INDIA



                            BUGM (CEO)




                                ED




 SOMU        WOMU           COMU         NOMU        EOMU

 (MUM)       (MUM)          (MUM)        (MUM)       (MUM)




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 BUSINESS UNIT GENERAL MANAGER (BUGM): Mr. RAJEEV BAKSHI

 EXECUTIVE DIRECTOR (ED): Mr. TANMYA VATS

 SOUTH OPERATIONS MARKET UNIT (SOMU):

 WEST OPERATIONS MARKET UNIT (WOMU):

 CENTRAL OPERATIONS MARKET UNIT (COMU):

 NORTH OPERATIONS MARKET UNIT (NOMU):

 EAST OPERATIONS MARKET UNIT (EOMU):

 MARKET UNIT MANAGER (MUM):

 THE MUM FOR SOMU: - Mr. VENKATSHANKAR




 Note:

    •    Each market unit has a manager called as Market Unit Manager (MUM).

    •       Represents flow of Authority.




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          SOUTH OPERATIONS MARKET UNIT (SOMU)



                              SOMU




 CHENNAI                   MADURAI           KARNATAKA

   (UM)                       (UM)             (UM)




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       The South operations Market Unit is divided into three parts they are


   1) Chennai

   2) Madurai

   3) Karnataka


                 Each unit has a Unit Manager, which is also called as the Vice

President.


  These Unit Managers report to their respective Market unit Manager (MUM)


  Mr. Venkatshankar




                            KARNATAKA UNIT




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                                ∗ LMP




                          UNIT MANAGER (UM)

                         (Mr. JAYA CHANDRAN)




         TDM                    TDM                  TDM



  ADC                     ADC                  ADC

                                                            MDC



        CE’s                     CE’s                CE’s




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   For Karnataka Unit there are: -

       •   1Line plant manager

       •   1 Unit Manager

       •   3 Territory Development Managers (TDM’s)

       •   3 Accounts Development Manager (ADC’s)

       •   1 Market Development Manager (MDC) and

       •   Customer Executives (CE’s)




    ∗Is the Unit Manager / Vice president has Sales as well Operational power then

he reports to Line Plant Manager as well as the respective Market Unit Manager

but if the Unit Manager has only sales power then he has to report to the Line Plant

Manager who in turn reports to the Market Unit Manager.




BABASAB PATIL MARKETING PROJECT REPORT MBA                                      33
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                 DIVISION OF KARNATAKA UNIT



 The entire Karnataka unit is been divided into 3 territories and accordingly one

 Territory Development Manager is been assigned to each territory: -



    1) Up Country – it refers to the places outside Bangalore i.e. Mysore,

       Mangalore, Tumkur, Ramnagar, Kolar etc.



    2) Kormangala




    3) Yeshwantpura




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   FUNCTIONS OF ACCOUNTS DEVELOPMENTCO-ORDINATOR (ADC):



              The function of ADC is developing the new accounts i.e. adding up new

retailers to the existing market list.

  He is concerned with sales department only.



    FUNCTIONS OF MARKET DEVELOPMENT CO-ORDINATOR (MDC):

                   The function of MDC is to develop new market.

 He purely undertakes marketing activities.



Note: -

The ADC and the MDC are only the supportive functions between the TDMs and

CEs.



Together with the TDM the Karnataka Unit also has a MDM Mr. ABDUL ASHIQ



The TDM takes care of sales activities in its region and the MDM is concerned with

marketing functions.




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                              PLANT DETAILS




                                       PLANT




   ACCOUNTS                 LOGISTICS          QUALITY CONTROL




The plant is divided into three departments,

  1) ACOUNTS

  2) LOGISTICS

  3) QUALITY CONTROL




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        1) ACCOUNTS: - This is one the big department which consists of the

          financial operations of the company. It consists of maintenance of

          accounts, the provision given to the retailers for the promotion

          activities carried on by them. This department also deals with the

          provision of coolers and any complaints with regard to it and other

          financial requirements of the company.



       2) LOGISTICS: - This department is concerned with transportation of

          the products (bottles) to the distributors.




       3) QUALITY CONTROL: - This department/unit takes care that the

          product released are of standard quality according to the companies

          norms provided




     TYPES OF OPERATIONS UNDERTAKEN BY THE COMPANY: -



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 Pepsi India Holdings, the intermix of company-owned bottling operations

 (COBOs) and franchisee owned bottling operations (FOBOs) within the market

 units will help in providing a senior resources pool of line and staff managers,

 impact both COBOs and FOBOs, and enable transference of best practices both

 ways.




The company undertakes two types of operations they are:-

 1) Company Owned Bottling Operations (COBO)

 2) Franchise Owned Bottling Operations (FOBO)



         1) Company Owned Bottling Operations (COBO): COBO refers to the

            operations directly carried by the company. There are Three

            COBOs in South India, they are in Chennai, Madurai and in

            Karnataka . These COBOs have to work under the guidelines by the

            PepsiCo New York.



         2) Franchise Owned Bottling Operations (FOBO) : FOBO refers to the

            operations carried by the franchise .




         Contd…………




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          COBOs/FOBOs organizations cut across disparate territories and

         helped in building a substantial distribution network. The organization

         structure in the market units is being reconfigured to reflect geographic

         continuity and tap new market opportunities.

 The objective of the exercise is to increase distribution of the company's

 products, gain greater flexibility to leverage resources and share best practices.




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                            DISTRIBUTORS IN MYSORE



There are six distributors in Mysore they are,



  1. Blue star marketing.

  2. Sahara Enterprise.

  3. Tippu Taj

  4. Renuka

  5. N. S. Enterprise

  6. S. D. Enterprise




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         Among the six distributors three are working over 50,000 AOP and three are

below 50.000 AOP.



Note:-

   •     The unit 50,000 is in cases

   •     AOP is the Annual Sales Target to be achieved by each Distributor.



   The following are the distributors who are classified under and below AOP.



                 OVER 50,000 AOP               BELOW 50,000 AOP


            BLUE STAR MARKETING                     SAHARA


                     TIPPU TAJ                      RENUKA


                         N.S.                          S. D.




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  NUMBER OF UNITS POSSESED BY EACH DISTRIBUTOR.


 1. Blue star marketing     -   4 UNITS

 2. Sahara Enterprise      -    2 UNITS

 3. Tippu Taj              -     4 UNITS

 4. Renuka                 -     2 UNITS

 5. N. S. Enterprise       -     3 UNITS

 6. S. D. Enterprise       -     2 UNITS



  Units refer to the vehicles in which the products are delivered.




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 Factors influencing the assignment of areas to distributors salesman


    1. An average number of outlets the sales man can effectively work on. A

         sales man can handle 40 outlets on an average effectively.



    2.    Depending on the frequency of a particular route. The distributors

         follow two types of frequencies they are,



            •   Daily

            •   Alternate days.




                        EIGHT IMPORTANT STEPS:

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The following are the 8 important steps followed by the customer executives
(C.E.s):



   1.PREPARATION

   2.WISHING CUSTOMERS

   3.SHOP INSPECTION

   4.CHECKING FOR THE STOCKS WHICH ARE TO BE PLACED

   5.INFORMING THE RETAILER ABOUT THE STOCKS WHICH ARE TO BE

   PLACED.

   6.EXECUTION OF THE ORDERS.

   7.RE-EXAMINATION.

   8.CONVINCING SKILLS.




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                              ADVERTISEMENT



                 Advertisement plays a very important role in marketing or sales of

product. Advertisement must be meaningful and clearly understood they should

convey the message in a unique way. It means that there should be creativity, which

should make it different from other advertisements.

                   It should be made taking into consideration the country in which

they are telecasting because an Indian may not understand an American ad. It is so

because perception and attitude differs

                The cost is too high but it a means of mass communication.

It must be seen that showing ads at wrong time is waste of capital/money. The time

has to be studied at what time the televisions of mass people will be switched on.




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                        ABOUT PEPSI T. V.




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Impact of TV advertisement




In this ad SRK orders Cable guy that he wants channel when they ask which he

says Pepsi TV they say there is nothing like Pepsi TV then suddenly Pepsi truck

comes and then Priyanka Chopra and Kareena Kapoor comes out and ask him that

does he want Pepsi TV he says yes and tells them where the TV is then it says to be

continued…

           After several weeks of suspense, while you kept on wondering on which

channel your cable guy will fix your Pepsi TV,he last part of the TV ads revealed

that “When you drink Pepsi while watching TV, it is called Pepsi TV”


        "It basically means... whenever you are watching television, you must have

the cola in your hand. That's how the soft drink is being positioned in the market

through this ad."


          The ad, made at an estimated budget of Rs.3.5 million, was shot by Shah

Rukh's buddy Farah Khan and produced by his company Red Chillies

Entertainment.




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                 PURPOSE OF THE ADVERTISEMENT



   The purpose of this ad is to build on an occasion led program that is,

supplementing occasions with Pepsi consumption - at home, family drink, and

working the consumer behavior element of "consuming drinks during watching

TV" - high-involvement attribute. It might take it forward to occasion-specific

advertising, subsequently.




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                                    SAMPLING



The sample size used for the survey is 200 retailers. It includes,

   1. BAKERIES (A and B class)

   2. SUPER MARKETS

   3. FEW PROVISION STORES

   This sample size was identified because they were the means of reaching
   consumers.


   Sampling frame:

   It was the route planner provided by the company.



   Sampling method:

   Judgment sample method was used which is type of Non probability sample. It

   refers to a sampling method in which chance selection procedures are not used.




   Judgment sample refers to the one in which there is an attempt to draw a

   representative sample of the population using Judgmental selection procedure.




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                                 Research Design



The Research design was divided into two parts they are

      1. Survey

      2. Implementation

      The six days of the week were divided as three days for survey and three

      days for implementation.

      Survey:       As per the route planner provided by the company the survey

      was conducted through questionnaire and found out that the many of the

      retailers were unaware of the Pepsi t. v. ad. Promo.

      Therefore the survey helped the retailers to get the details about the benefits

      to be given to the consumers as well the benefits to be availed by the

      distributors. The detail about the benefits is attached on the next page.

      During the survey we found out that there are three types of outlets selling

      cold drinks they are,

          •   PEPSI MONOPOLY

          •   CCX MONOPOLY

          •   MIXED




BABASAB PATIL MARKETING PROJECT REPORT MBA                                        50
Impact of TV advertisement




     Implementation: After the survey implementation was carried out. In this

     procedure the orders were taken and seen to it the distributors place them

     and if there are any queries regarding the benefits they were sorted or

     cleared.

                Also it was seen that every outlet we have surveyed have properly

            display of Pepsi Products.



        DATA COLLECTION METHOD: SURVEY




       DATA COLLECTION TECHNIQUE: QUESTIONAIRE




BABASAB PATIL MARKETING PROJECT REPORT MBA                                   51
Impact of TV advertisement




BABASAB PATIL MARKETING PROJECT REPORT MBA   52
Impact of TV advertisement




           FINDINGS AND RESULTS




BABASAB PATIL MARKETING PROJECT REPORT MBA   53
Impact of TV advertisement
FINDINGS




GRAPH SHOWING THE NUMBER OF RESPONDENTS AWARE OF THE

BENEFITS TO BE GIVEN TIO THE CUSTOMERS AS WELL THE BENEFITS TO

BE AVAILED BY THE DISRIBUTORS




                                    140

                                                                120
                                    120


                                    100
                Number Of Outlets




                                           80
                                     80


                                     60


                                     40


                                     20


                                      0
                                          AWARE             UNAWARE
                                                  Respondants


                                                CHART 1



Explaination


 BABASAB PATIL MARKETING PROJECT REPORT MBA                           54
Impact of TV advertisement




Chart 1 clearly shows that

  •   80 outlets were aware of the benefits of the Pepsi T.V. ad promo.

  •   120 were unaware of the benefits of the Pepsi T.V. ad promo



  The reason behind the unawareness is that, usually the traders will be on

  business or in their outlets. Therefore during our surveys we gave them the clear

  picture of Pepsi T.V. ad. Promo. And explained about the benefit.




BABASAB PATIL MARKETING PROJECT REPORT MBA                                     55
Impact of TV advertisement


                          CHART SHOWING THE
                       CONSUMERS FOR 2 LTR PEPSI
                               BOTTLE

                       120


                                                         99
                       100                         93
    UNITS IN NUMBERS




                        80


                        60


                        40


                        20

                                   0
                         0
                              PARTY            HOUSE    MIXED
                              GOERS             HOLD
                                           CONSUMERS


                                         CHART 2



BABASAB PATIL MARKETING PROJECT REPORT MBA                      56
Impact of TV advertisement




                                EXPLANATION



Chart 2

   1. Clearly shows the consumers for 2 ltr Pepsi 2 ltr bottles.

      X axis Pepsi 2 ltr bottle consumers

      Y axis indicate the units in numbers

   2. In majority of the outlets I surveyed it was found that the

      consumers/customers were usually households and party goers.

      Therefore, relating the Pepsi and TV channel is a good concept.




BABASAB PATIL MARKETING PROJECT REPORT MBA                              57
Impact of TV advertisement




                          RESULTS




BABASAB PATIL MARKETING PROJECT REPORT MBA   58
Impact of TV advertisement


              SALES CHART FROM MARCH TO
                        JUNE

            700


            600                               585
                       562

                                     501
            500


            400
    SALES




            300


                                                    190
            200


            100


               0
                     MARCH         APRIL     MAY    JUNE
                                         MONTHS


                                   CHART 3




BABASAB PATIL MARKETING PROJECT REPORT MBA                 59
Impact of TV advertisement




                                    EXPLAINATION




         Chart 3 shows the number of cases sold before and during my project.

  The figures indicate the number of cases sold from March to June and each

  case consist of nine bottles.

         When we look at the chart2 we get a clear picture of sales raising in the

  month of May (585 cases) compared to the sales figure of March (562 cases)

  and April (501 cases).

                  There was a drastic fall in the month of June (190 cases) as the

  monsoon already hit Mysore in the first week of June.

               The sales figure of July was not available as my project completed

  in the mid of July and the sales results/figures will be available only at the end

  of the month.




BABASAB PATIL MARKETING PROJECT REPORT MBA                                      60
Impact of TV advertisement


       CALCULATION OF PERCENTAGE INCREASE IN SALES



       The two months taken for comparison are April and May

       April – Before the project was done

       May – Project Month

       June is not taken for comparison because monsoon hit Mysore in first

           week itself.



                      APRIL             MAY     % Increase

           2 litre        501          585        7.73




       Working:-

       When:

        Total sales 1086 (501 + 585)

       Incremental sales 84 (585-501)

       Therefore, for 100 cases

       Incremental sales will be= 100 x 84    =7.73%

                                    1086




BABASAB PATIL MARKETING PROJECT REPORT MBA                             61
Impact of TV advertisement




                                    DISCUSSION



       During the survey I found the following when discussed with the

           retailers



          1. Consumer involvement

          2. Generating curiosity and a buzz (though it has turned out to be an

          anti-climax)

          3. It may actually succeed in product usage because most of the

          TG( i.e. youngsters) watch a lot of television and definitely

          consuming Pepsi at the same time will just add to the experience.

          4. It chose Priyanka chopra and kareena Kapoor who are

          unarguably the most happening young actresses and have a great

          appeal in the youngsters.




BABASAB PATIL MARKETING PROJECT REPORT MBA                                    62
Impact of TV advertisement




BABASAB PATIL MARKETING PROJECT REPORT MBA   63
Impact of TV advertisement


                                  SUGGESTIONS



          1. Workshop for retailers: - Workshop should be conducted in

              such a place of a locality where in it is easy for the retailers to

              attend and get the necessary information of the new suspense ads

              in future. It should also be taken into consideration that there is

              minimum investment of time in this workshop because the

              retailers will think that it is wastage of time. This will be the

              motivating factor for the retailers because they will think that

              the company is showing interest in helping them to increase their

              sales. This in turn will help the company increasing its sales.

                    Therefore the company should take necessary steps in

              organizing the workshops.



          2. Print Media:       - Print Media plays an important role after

              electronic media, because in the electronic media advertisements

              will be of hardly one minute and may not convey the full details.

              Pamphlets should be used as well as newspapers




BABASAB PATIL MARKETING PROJECT REPORT MBA                                      64
Impact of TV advertisement
          3. 9+1 OFFER: - Offering of 9 + 1 scheme to retailers so that they

              will be induced to purchase more cases and can push our product

              to the consumers instead of other Brands.

              This offer will be helpful to convert mixed outlets to Pepsi

              monopoly.




BABASAB PATIL MARKETING PROJECT REPORT MBA                               65
Impact of TV advertisement




            COST OF THE WORKSHOP AND PRINT MEDIA




WORKSHOP: -

The cost of workshop will be high therefore to reduce this the company people can

actively participate instead of hiring outside people.



PRINT MEDIA: -

The cost of print media will be less and it is a means of mass communication.




 BABASAB PATIL MARKETING PROJECT REPORT MBA                                     66
Impact of TV advertisement
             ACHIEVEMENTS IN THE FORM OF LEADS

           Name of the outlet                 Location
1.Mega Bakery and sweets                   N. R. Mohalla
2. Karnataka Bakery                         Shantinagar
3. New Sri Krishna Bakery             New Kantharaja Urs Road
4. Hassan Iyengars bakery                Gokulam 3rd Stage
5.Vinayaka stores                         Vinayaka Nagar
6. Sweet Palace                          Jayalakshmipuram
7. Trupti Bakery and Cool Points           Vagdevi Nagar
8. Sri Sudarshan Iyengar Bakery       New Kantharaja Urs Road
9.Sri Ranga Iyengar Bakery                  T .K. Layout
10. Sri Ragavendra Iyengars Bakery      Gokulam Main Road




BABASAB PATIL MARKETING PROJECT REPORT MBA                  67
Impact of TV advertisement




              CHAPTER - IV




BABASAB PATIL MARKETING PROJECT REPORT MBA   68
Impact of TV advertisement


                          QUESTIONNAIRE



 1) NAME :

 2) ADDRESS:


 3) Do you know about Pepsi TV?

        YES                             No

 4) What kind fob customers are walking in for 2 ltr Pepsi Bottles?

 Household

 Partygoers

 5) Do you know about the benefits that you get on pet bottles?

        YES                             No

 6) Do you think display will drive your sales?

        YES                              No

 COMMENTS




BABASAB PATIL MARKETING PROJECT REPORT MBA                            69
Impact of TV advertisement


                            BIBLOGRAPHY

      The information needed to complete this project was directly from,

 EXTERNAL GUIDES: -               Mr. RAVINDRA PAI
                                          ADC PepsiCo INDIA


                                 Mr. SASANK
                                        C.E. PepsiCo INDIA (MYSORE)


 WEBSITE: -                      www.pepsico.com




BABASAB PATIL MARKETING PROJECT REPORT MBA                                 70

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Impact of tv advertisement of pepsi company mba marketing project report

  • 1. Impact of TV advertisement EXECUTIVE SUMMERY This project report is on the “Impact of advertisement (Pepsi TV promo add)”on retailer to know about the awareness about the advertisement. The project was carried in Mysore with sample size of 200 retailers. There are two variables dependent and independent variables: Dependent variable: Sales is dependent variable because when advertised properly the consumers are induced. Awareness is also related to sales because if the retailers are aware of the advertisement they can confront about the benefits to the consumers. Independent variable: Here independent variable is advertisement. Therefore the project is done to check the awareness level of the advertisement among the retailers. BABASAB PATIL MARKETING PROJECT REPORT MBA 1
  • 2. Impact of TV advertisement INTRODUCTION The project was started from May 15th to July 15th 2006 for Pepsi Co India. It was done in Mysore. The project was carried out due to the criteria of the university after the completion of M.B.A. second semester. The main objective of this in-plant training was to get an exposure to the working environment in an organization. This was an opportunity for us to relate concepts learnt by us to the practical application in the organization. This in-plant training provided us in interacting with the highly experienced managers and to improve our practical knowledge. BABASAB PATIL MARKETING PROJECT REPORT MBA 2
  • 3. Impact of TV advertisement ABOUT THE PLACE WHERE THE PROJECT WAS DONE Mysore city is at 770m above sea level and 140 kms from Bangalore. It is also known as the City of Palaces, Mysore retains a quaint charm that never fails to enchant. It is situated in the southern part of the Deccan Plateau. From ancient times, this district has played a significant role in the history of South India. Mysore District is a popular tourist destination, offering several attractions ranging from the royal Splendour of Mysore City and its fabulous Dasara Festival to exquisite temples, pilgrimage Centers and scenic spots. Mysore today, is a pleasant city with an old world charm, contributed by its broad shady avenues, well laid out gardens, fine buildings and a salubrious climate. BABASAB PATIL MARKETING PROJECT REPORT MBA 3
  • 4. Impact of TV advertisement STATEMENT OF THE PROBLEM UNAWARENESS OF THE PEPSI T.V. AD. PROMO. AMONGST THE RETAILERS BABASAB PATIL MARKETING PROJECT REPORT MBA 4
  • 5. Impact of TV advertisement PURPOSE OF THE STUDY 1. TO INCREASE THE AWARNESS LEVEL AMONGST THE RETAILERS ABOUT THE PEPSI T.V.AD.PROMO. 2. TO KNOW IF DISPLAY COULD DRIVE THE SALES. 3. TO KNOW WHO ARE THE CUSTOMERS FOR 2 LITRE BOTTLES BABASAB PATIL MARKETING PROJECT REPORT MBA 5
  • 6. Impact of TV advertisement SCOPE OF THE STUDY The scope of the study is to understand: 1) The Pepsi markets share in Mysore. 2) Awareness level about Pepsi T. V. ad. Promo amongst the retailers. BABASAB PATIL MARKETING PROJECT REPORT MBA 6
  • 7. Impact of TV advertisement LIMITATIONS OF THE STUDY 1) Due to time constraints the study is restricted only to the retailers and not of consumers. 2) Amongst the retailers only the following are considered: a. A & B Class bakeries b. Supermarkets c. Few provision stores 3) The coverage of objective of study is limited to the extent of information given by the company. Inspite of all above-mentioned limitations, every effort has been made effectively and report is prepared to best of my knowledge. BABASAB PATIL MARKETING PROJECT REPORT MBA 7
  • 8. Impact of TV advertisement OBJECTIVE OF THE STUDY The objective is to check the awareness of Pepsi T. V. ad. Promo among the retailers / traders. This was done considering the following, 1) Usually the retailers will be in their shops or on business. 2) They were confused about the ad. I.e. they were thinking that there is Pepsi Channel to be launched. 3) The ad. created hype in the minds that Pepsi is going to come out with the new T. V. known as Pepsi T. V. 4) Many retailers were unknown about the benefits to be given to the consumers. Therefore, as the retailers are the means foe sales they should be confronted about the advertisement and the benefits to be given to the consumers. BABASAB PATIL MARKETING PROJECT REPORT MBA 8
  • 9. Impact of TV advertisement CHAPTER - II BABASAB PATIL MARKETING PROJECT REPORT MBA 9
  • 10. Impact of TV advertisement ORGANISATION PROFILE HISTORY Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay found PepsiCo, Inc., through the merger of the two companies. Caleb Bradham, a New Bern, N.C. pharmacist, created pepsi-Cola in the late 1890s. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. Pepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the 1950s. Today, PepsiCo beverages are available in more than 170 countries and territories. Brands include Aquafina, Gatorade and Tropicana. The new company reports sales of $510 million and has 19,000 employees. BABASAB PATIL MARKETING PROJECT REPORT MBA 10
  • 11. Impact of TV advertisement CORPORATE PROFILE PepsiCo is the world leader in convenient food and beverages with 2005 revenues of more than dollar 32 billion and more than 157000 employees. The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $85 billion. Many of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with the Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service and vending. BABASAB PATIL MARKETING PROJECT REPORT MBA 11
  • 12. Impact of TV advertisement PEPSI IN INDIA Pepsi gained entry to India in 1988 by creating a joint venture with the Punjab Government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; Pepsi bought out its partners and ended the joint venture in 1994. The brand was trademarked on June 16, 1903, though the drink was first made in 1898, by pharmacist Caleb Bradham. BABASAB PATIL MARKETING PROJECT REPORT MBA 12
  • 13. Impact of TV advertisement PEPSI BRANDS AVAILABLE IN INDIA 1. PEPSI 2. PEPSI CAFÉ CHINO 3. DIET PEPSI 4. 7 UP 5. MIRINDA 6. SLICE 7. MOUNTAIN DEW 8. AQUIFINA 9. LEHAR SODA BABASAB PATIL MARKETING PROJECT REPORT MBA 13
  • 14. Impact of TV advertisement Product Profile The price of the product two liters Pepsi pet bottle is Rs. 45/- sales price Rs. 42.85 ps retailers price Contents Sweetened Carbonated water No Fruit juice Sugar Buffering agents Contains added flavours 1 case contains 9 bottles BABASAB PATIL MARKETING PROJECT REPORT MBA 14
  • 15. Impact of TV advertisement PEPSI CO’s MISSION PepsiCo’s mission is “To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.” BABASAB PATIL MARKETING PROJECT REPORT MBA 15
  • 16. Impact of TV advertisement Corporate Citizenship At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: “PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic -- creating a better tomorrow than today.” Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. BABASAB PATIL MARKETING PROJECT REPORT MBA 16
  • 17. Impact of TV advertisement Executive Office PepsiCo, Inc. 700 Anderson Hill Road Purchase, NY 10577 (914) 253-2000 PepsiCo Headquarters PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. Edward Durrell Stone, one of America’s foremost architects, designed the seven-building headquarters complex. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting. BABASAB PATIL MARKETING PROJECT REPORT MBA 17
  • 18. Impact of TV advertisement Divisions The company reports their operating results as follows, by divisions: • Frito-Lay North America (FLNA) • PepsiCo Beverages North America (PBNA) • Quaker Foods North America (QFNA) • PepsiCo International (PI) PEPSICO REPORTING STRUCTURE PEPSICO FLNA PBNA QFNA PI PEPSI CO’s COMMITMENT BABASAB PATIL MARKETING PROJECT REPORT MBA 18
  • 19. Impact of TV advertisement “Diversity isn’t just the right thing to do. It’s the right thing to do for our business, and we are committed to making diversity and inclusion a way of life at PepsiCo. In our business, understanding different cultures is a major advantage. In fact, we view diversity as a key to our future. Our brands appeal to an extraordinarily diverse array of customers. And they are sold by an equally diverse group of retailers. To truly understand the needs of our customers and consumers -- and succeed in the marketplace -- PepsiCo must reflect that diversity in our employees, our suppliers and in everything we do. Offering a workplace where diversity is valued helps us build the top-quality workforce so crucial to our success -- by enabling us to attract and retain great people from a wide spectrum of backgrounds.” BABASAB PATIL MARKETING PROJECT REPORT MBA 19
  • 20. Impact of TV advertisement Community PepsiCo committed to celebrating and supporting diversity in its community through its corporate giving and community programs. PepsiCo gives to the community through the PepsiCo Foundation, the PepsiCo Community Affairs Department and PepsiCo divisions. The PepsiCo Foundation and its operating divisions gave grants to more than 1,000 community organizations, of which a significant portion were organizations championing diversity. It also support organizations through gifts in-kind, such as product, premiums, printing, meeting arrangements, equipment donations, and support of events, conventions, journals and meetings. BABASAB PATIL MARKETING PROJECT REPORT MBA 20
  • 21. Impact of TV advertisement Customers PepsiCo is committed to marketing its products to all groups, treating all customers with respect, sensitivity and fairness, while providing some of the greatest products on earth. Early in its history -- as far back as the 1940s -- Pepsi- Cola recognized the importance of diversity. Pepsi pioneered targeted marketing and national lifestyle advertising featuring minorities. It developed education and sports programs spotlighting minorities. PepsiCo partnered with many groups to create programs that contribute to minority communities. It sponsored major music tours by entertainers such as Tina Turner. PepsiCo support minority media and interests. Over the years, its success has been recognized with numerous awards. Most importantly, its products are purchased and enjoyed by all groups of consumers. BABASAB PATIL MARKETING PROJECT REPORT MBA 21
  • 22. Impact of TV advertisement Shareholders PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded. BABASAB PATIL MARKETING PROJECT REPORT MBA 22
  • 23. Impact of TV advertisement Sustainability vision “PepsiCo responsibility is to continuously improve all the aspects of the world in which they are operating i.e. that is environment social and economical with an intension of creating better tomorrow than today”. This is the core part of the vision. BABASAB PATIL MARKETING PROJECT REPORT MBA 23
  • 24. Impact of TV advertisement ENVORONMENTAL POLICY 1. PepsiCo complies with applicable legal and regulatory requirements and companies standards and conduct regular audits to verify compliance 2. PepsiCo annually review companies performance in implementing the policy 3. PepsiCo reviews policy periodically and updates as needed. 4. It considers potential environmental impacts in daily decision making process 5. Pepsi co applies sound environmental management practices. 6. Pepsi encourages conservation of natural resources, recycling and pollution control to ensure cleaner air and water 7. Pepsi co monitors emerging issues and keep abreast of regulatory changes technological innovation and stakeholders interest. 8. PepsiCo works with licensed bottlers suppliers and customers top reduce environmental impacts on its product throughout their life cycle As the part of their environmental policy Pepsi Co India has 1. Donated generously to the Tsunami victims. 2. The company has also developed a Teppada village NH-4 Begur surrounding Nelamangala Plant and the company has also been providing free water to this village. BABASAB PATIL MARKETING PROJECT REPORT MBA 24
  • 25. Impact of TV advertisement PEPSI CO’s SALES VISION: To build an exceptional customer focused sales team, which will consistently exceed customer expectations by delivering executional excellence in the market place through best selling systems and process. BABASAB PATIL MARKETING PROJECT REPORT MBA 25
  • 26. Impact of TV advertisement HONOURS FOR 2006 • PepsiCo named winner of the best-integrated marketing campaign during the Globes Awards sponsored by the Marketing Agencies Association (MAA) Worldwide. Pepsi Wins Award for Indian Cricket World Cup Campaign by Marketing Agencies Association Worldwide. • PepsiCo Recognized as one of the "20 Most Influential Multi-Nationals in China." by China Business News. • Institutional Investor Releases 'Best CEOs' list; Reinemund Tops Beverage Leaders. • Chinese College Students Name Pepsi Among Top Ten Brands. • Fortune Magazine calls PepsiCo "one of the best run companies in the country.” • PepsiCo Wins Sam’s Club ‘Supplier of the Year’ Award. • Institutional Investor Identifies PepsiCo as one of America’s Most Shareholder-Friendly Companies. • PepsiCo Ranks as 15th Most-Admired Company on Fortune's List of the Top 20. • Gatorade Mexico Named Wal-Mex 'Supplier of the Year'. • PepsiCo Officially Observes $100 Billion Market Cap Milestone. BABASAB PATIL MARKETING PROJECT REPORT MBA 26
  • 27. Impact of TV advertisement Distributional Channel of PepsiCo India (COBO’s) FACTORY DISTRIBUTORS RETAILERS CONSUMERS BABASAB PATIL MARKETING PROJECT REPORT MBA 27
  • 28. Impact of TV advertisement ORGANISATIONAL CHART OF PEPSICO INDIA BUGM (CEO) ED SOMU WOMU COMU NOMU EOMU (MUM) (MUM) (MUM) (MUM) (MUM) BABASAB PATIL MARKETING PROJECT REPORT MBA 28
  • 29. Impact of TV advertisement BUSINESS UNIT GENERAL MANAGER (BUGM): Mr. RAJEEV BAKSHI EXECUTIVE DIRECTOR (ED): Mr. TANMYA VATS SOUTH OPERATIONS MARKET UNIT (SOMU): WEST OPERATIONS MARKET UNIT (WOMU): CENTRAL OPERATIONS MARKET UNIT (COMU): NORTH OPERATIONS MARKET UNIT (NOMU): EAST OPERATIONS MARKET UNIT (EOMU): MARKET UNIT MANAGER (MUM): THE MUM FOR SOMU: - Mr. VENKATSHANKAR Note: • Each market unit has a manager called as Market Unit Manager (MUM). • Represents flow of Authority. BABASAB PATIL MARKETING PROJECT REPORT MBA 29
  • 30. Impact of TV advertisement SOUTH OPERATIONS MARKET UNIT (SOMU) SOMU CHENNAI MADURAI KARNATAKA (UM) (UM) (UM) BABASAB PATIL MARKETING PROJECT REPORT MBA 30
  • 31. Impact of TV advertisement The South operations Market Unit is divided into three parts they are 1) Chennai 2) Madurai 3) Karnataka Each unit has a Unit Manager, which is also called as the Vice President. These Unit Managers report to their respective Market unit Manager (MUM) Mr. Venkatshankar KARNATAKA UNIT BABASAB PATIL MARKETING PROJECT REPORT MBA 31
  • 32. Impact of TV advertisement ∗ LMP UNIT MANAGER (UM) (Mr. JAYA CHANDRAN) TDM TDM TDM ADC ADC ADC MDC CE’s CE’s CE’s BABASAB PATIL MARKETING PROJECT REPORT MBA 32
  • 33. Impact of TV advertisement For Karnataka Unit there are: - • 1Line plant manager • 1 Unit Manager • 3 Territory Development Managers (TDM’s) • 3 Accounts Development Manager (ADC’s) • 1 Market Development Manager (MDC) and • Customer Executives (CE’s) ∗Is the Unit Manager / Vice president has Sales as well Operational power then he reports to Line Plant Manager as well as the respective Market Unit Manager but if the Unit Manager has only sales power then he has to report to the Line Plant Manager who in turn reports to the Market Unit Manager. BABASAB PATIL MARKETING PROJECT REPORT MBA 33
  • 34. Impact of TV advertisement DIVISION OF KARNATAKA UNIT The entire Karnataka unit is been divided into 3 territories and accordingly one Territory Development Manager is been assigned to each territory: - 1) Up Country – it refers to the places outside Bangalore i.e. Mysore, Mangalore, Tumkur, Ramnagar, Kolar etc. 2) Kormangala 3) Yeshwantpura BABASAB PATIL MARKETING PROJECT REPORT MBA 34
  • 35. Impact of TV advertisement FUNCTIONS OF ACCOUNTS DEVELOPMENTCO-ORDINATOR (ADC): The function of ADC is developing the new accounts i.e. adding up new retailers to the existing market list. He is concerned with sales department only. FUNCTIONS OF MARKET DEVELOPMENT CO-ORDINATOR (MDC): The function of MDC is to develop new market. He purely undertakes marketing activities. Note: - The ADC and the MDC are only the supportive functions between the TDMs and CEs. Together with the TDM the Karnataka Unit also has a MDM Mr. ABDUL ASHIQ The TDM takes care of sales activities in its region and the MDM is concerned with marketing functions. BABASAB PATIL MARKETING PROJECT REPORT MBA 35
  • 36. Impact of TV advertisement PLANT DETAILS PLANT ACCOUNTS LOGISTICS QUALITY CONTROL The plant is divided into three departments, 1) ACOUNTS 2) LOGISTICS 3) QUALITY CONTROL BABASAB PATIL MARKETING PROJECT REPORT MBA 36
  • 37. Impact of TV advertisement 1) ACCOUNTS: - This is one the big department which consists of the financial operations of the company. It consists of maintenance of accounts, the provision given to the retailers for the promotion activities carried on by them. This department also deals with the provision of coolers and any complaints with regard to it and other financial requirements of the company. 2) LOGISTICS: - This department is concerned with transportation of the products (bottles) to the distributors. 3) QUALITY CONTROL: - This department/unit takes care that the product released are of standard quality according to the companies norms provided TYPES OF OPERATIONS UNDERTAKEN BY THE COMPANY: - BABASAB PATIL MARKETING PROJECT REPORT MBA 37
  • 38. Impact of TV advertisement Pepsi India Holdings, the intermix of company-owned bottling operations (COBOs) and franchisee owned bottling operations (FOBOs) within the market units will help in providing a senior resources pool of line and staff managers, impact both COBOs and FOBOs, and enable transference of best practices both ways. The company undertakes two types of operations they are:- 1) Company Owned Bottling Operations (COBO) 2) Franchise Owned Bottling Operations (FOBO) 1) Company Owned Bottling Operations (COBO): COBO refers to the operations directly carried by the company. There are Three COBOs in South India, they are in Chennai, Madurai and in Karnataka . These COBOs have to work under the guidelines by the PepsiCo New York. 2) Franchise Owned Bottling Operations (FOBO) : FOBO refers to the operations carried by the franchise . Contd………… BABASAB PATIL MARKETING PROJECT REPORT MBA 38
  • 39. Impact of TV advertisement COBOs/FOBOs organizations cut across disparate territories and helped in building a substantial distribution network. The organization structure in the market units is being reconfigured to reflect geographic continuity and tap new market opportunities. The objective of the exercise is to increase distribution of the company's products, gain greater flexibility to leverage resources and share best practices. BABASAB PATIL MARKETING PROJECT REPORT MBA 39
  • 40. Impact of TV advertisement DISTRIBUTORS IN MYSORE There are six distributors in Mysore they are, 1. Blue star marketing. 2. Sahara Enterprise. 3. Tippu Taj 4. Renuka 5. N. S. Enterprise 6. S. D. Enterprise BABASAB PATIL MARKETING PROJECT REPORT MBA 40
  • 41. Impact of TV advertisement Among the six distributors three are working over 50,000 AOP and three are below 50.000 AOP. Note:- • The unit 50,000 is in cases • AOP is the Annual Sales Target to be achieved by each Distributor. The following are the distributors who are classified under and below AOP. OVER 50,000 AOP BELOW 50,000 AOP BLUE STAR MARKETING SAHARA TIPPU TAJ RENUKA N.S. S. D. BABASAB PATIL MARKETING PROJECT REPORT MBA 41
  • 42. Impact of TV advertisement NUMBER OF UNITS POSSESED BY EACH DISTRIBUTOR. 1. Blue star marketing - 4 UNITS 2. Sahara Enterprise - 2 UNITS 3. Tippu Taj - 4 UNITS 4. Renuka - 2 UNITS 5. N. S. Enterprise - 3 UNITS 6. S. D. Enterprise - 2 UNITS Units refer to the vehicles in which the products are delivered. BABASAB PATIL MARKETING PROJECT REPORT MBA 42
  • 43. Impact of TV advertisement Factors influencing the assignment of areas to distributors salesman 1. An average number of outlets the sales man can effectively work on. A sales man can handle 40 outlets on an average effectively. 2. Depending on the frequency of a particular route. The distributors follow two types of frequencies they are, • Daily • Alternate days. EIGHT IMPORTANT STEPS: BABASAB PATIL MARKETING PROJECT REPORT MBA 43
  • 44. Impact of TV advertisement The following are the 8 important steps followed by the customer executives (C.E.s): 1.PREPARATION 2.WISHING CUSTOMERS 3.SHOP INSPECTION 4.CHECKING FOR THE STOCKS WHICH ARE TO BE PLACED 5.INFORMING THE RETAILER ABOUT THE STOCKS WHICH ARE TO BE PLACED. 6.EXECUTION OF THE ORDERS. 7.RE-EXAMINATION. 8.CONVINCING SKILLS. BABASAB PATIL MARKETING PROJECT REPORT MBA 44
  • 45. Impact of TV advertisement ADVERTISEMENT Advertisement plays a very important role in marketing or sales of product. Advertisement must be meaningful and clearly understood they should convey the message in a unique way. It means that there should be creativity, which should make it different from other advertisements. It should be made taking into consideration the country in which they are telecasting because an Indian may not understand an American ad. It is so because perception and attitude differs The cost is too high but it a means of mass communication. It must be seen that showing ads at wrong time is waste of capital/money. The time has to be studied at what time the televisions of mass people will be switched on. BABASAB PATIL MARKETING PROJECT REPORT MBA 45
  • 46. Impact of TV advertisement ABOUT PEPSI T. V. BABASAB PATIL MARKETING PROJECT REPORT MBA 46
  • 47. Impact of TV advertisement In this ad SRK orders Cable guy that he wants channel when they ask which he says Pepsi TV they say there is nothing like Pepsi TV then suddenly Pepsi truck comes and then Priyanka Chopra and Kareena Kapoor comes out and ask him that does he want Pepsi TV he says yes and tells them where the TV is then it says to be continued… After several weeks of suspense, while you kept on wondering on which channel your cable guy will fix your Pepsi TV,he last part of the TV ads revealed that “When you drink Pepsi while watching TV, it is called Pepsi TV” "It basically means... whenever you are watching television, you must have the cola in your hand. That's how the soft drink is being positioned in the market through this ad." The ad, made at an estimated budget of Rs.3.5 million, was shot by Shah Rukh's buddy Farah Khan and produced by his company Red Chillies Entertainment. BABASAB PATIL MARKETING PROJECT REPORT MBA 47
  • 48. Impact of TV advertisement PURPOSE OF THE ADVERTISEMENT The purpose of this ad is to build on an occasion led program that is, supplementing occasions with Pepsi consumption - at home, family drink, and working the consumer behavior element of "consuming drinks during watching TV" - high-involvement attribute. It might take it forward to occasion-specific advertising, subsequently. BABASAB PATIL MARKETING PROJECT REPORT MBA 48
  • 49. Impact of TV advertisement SAMPLING The sample size used for the survey is 200 retailers. It includes, 1. BAKERIES (A and B class) 2. SUPER MARKETS 3. FEW PROVISION STORES This sample size was identified because they were the means of reaching consumers. Sampling frame: It was the route planner provided by the company. Sampling method: Judgment sample method was used which is type of Non probability sample. It refers to a sampling method in which chance selection procedures are not used. Judgment sample refers to the one in which there is an attempt to draw a representative sample of the population using Judgmental selection procedure. BABASAB PATIL MARKETING PROJECT REPORT MBA 49
  • 50. Impact of TV advertisement Research Design The Research design was divided into two parts they are 1. Survey 2. Implementation The six days of the week were divided as three days for survey and three days for implementation. Survey: As per the route planner provided by the company the survey was conducted through questionnaire and found out that the many of the retailers were unaware of the Pepsi t. v. ad. Promo. Therefore the survey helped the retailers to get the details about the benefits to be given to the consumers as well the benefits to be availed by the distributors. The detail about the benefits is attached on the next page. During the survey we found out that there are three types of outlets selling cold drinks they are, • PEPSI MONOPOLY • CCX MONOPOLY • MIXED BABASAB PATIL MARKETING PROJECT REPORT MBA 50
  • 51. Impact of TV advertisement Implementation: After the survey implementation was carried out. In this procedure the orders were taken and seen to it the distributors place them and if there are any queries regarding the benefits they were sorted or cleared. Also it was seen that every outlet we have surveyed have properly display of Pepsi Products. DATA COLLECTION METHOD: SURVEY DATA COLLECTION TECHNIQUE: QUESTIONAIRE BABASAB PATIL MARKETING PROJECT REPORT MBA 51
  • 52. Impact of TV advertisement BABASAB PATIL MARKETING PROJECT REPORT MBA 52
  • 53. Impact of TV advertisement FINDINGS AND RESULTS BABASAB PATIL MARKETING PROJECT REPORT MBA 53
  • 54. Impact of TV advertisement FINDINGS GRAPH SHOWING THE NUMBER OF RESPONDENTS AWARE OF THE BENEFITS TO BE GIVEN TIO THE CUSTOMERS AS WELL THE BENEFITS TO BE AVAILED BY THE DISRIBUTORS 140 120 120 100 Number Of Outlets 80 80 60 40 20 0 AWARE UNAWARE Respondants CHART 1 Explaination BABASAB PATIL MARKETING PROJECT REPORT MBA 54
  • 55. Impact of TV advertisement Chart 1 clearly shows that • 80 outlets were aware of the benefits of the Pepsi T.V. ad promo. • 120 were unaware of the benefits of the Pepsi T.V. ad promo The reason behind the unawareness is that, usually the traders will be on business or in their outlets. Therefore during our surveys we gave them the clear picture of Pepsi T.V. ad. Promo. And explained about the benefit. BABASAB PATIL MARKETING PROJECT REPORT MBA 55
  • 56. Impact of TV advertisement CHART SHOWING THE CONSUMERS FOR 2 LTR PEPSI BOTTLE 120 99 100 93 UNITS IN NUMBERS 80 60 40 20 0 0 PARTY HOUSE MIXED GOERS HOLD CONSUMERS CHART 2 BABASAB PATIL MARKETING PROJECT REPORT MBA 56
  • 57. Impact of TV advertisement EXPLANATION Chart 2 1. Clearly shows the consumers for 2 ltr Pepsi 2 ltr bottles. X axis Pepsi 2 ltr bottle consumers Y axis indicate the units in numbers 2. In majority of the outlets I surveyed it was found that the consumers/customers were usually households and party goers. Therefore, relating the Pepsi and TV channel is a good concept. BABASAB PATIL MARKETING PROJECT REPORT MBA 57
  • 58. Impact of TV advertisement RESULTS BABASAB PATIL MARKETING PROJECT REPORT MBA 58
  • 59. Impact of TV advertisement SALES CHART FROM MARCH TO JUNE 700 600 585 562 501 500 400 SALES 300 190 200 100 0 MARCH APRIL MAY JUNE MONTHS CHART 3 BABASAB PATIL MARKETING PROJECT REPORT MBA 59
  • 60. Impact of TV advertisement EXPLAINATION Chart 3 shows the number of cases sold before and during my project. The figures indicate the number of cases sold from March to June and each case consist of nine bottles. When we look at the chart2 we get a clear picture of sales raising in the month of May (585 cases) compared to the sales figure of March (562 cases) and April (501 cases). There was a drastic fall in the month of June (190 cases) as the monsoon already hit Mysore in the first week of June. The sales figure of July was not available as my project completed in the mid of July and the sales results/figures will be available only at the end of the month. BABASAB PATIL MARKETING PROJECT REPORT MBA 60
  • 61. Impact of TV advertisement CALCULATION OF PERCENTAGE INCREASE IN SALES The two months taken for comparison are April and May April – Before the project was done May – Project Month June is not taken for comparison because monsoon hit Mysore in first week itself. APRIL MAY % Increase 2 litre 501 585 7.73 Working:- When: Total sales 1086 (501 + 585) Incremental sales 84 (585-501) Therefore, for 100 cases Incremental sales will be= 100 x 84 =7.73% 1086 BABASAB PATIL MARKETING PROJECT REPORT MBA 61
  • 62. Impact of TV advertisement DISCUSSION During the survey I found the following when discussed with the retailers 1. Consumer involvement 2. Generating curiosity and a buzz (though it has turned out to be an anti-climax) 3. It may actually succeed in product usage because most of the TG( i.e. youngsters) watch a lot of television and definitely consuming Pepsi at the same time will just add to the experience. 4. It chose Priyanka chopra and kareena Kapoor who are unarguably the most happening young actresses and have a great appeal in the youngsters. BABASAB PATIL MARKETING PROJECT REPORT MBA 62
  • 63. Impact of TV advertisement BABASAB PATIL MARKETING PROJECT REPORT MBA 63
  • 64. Impact of TV advertisement SUGGESTIONS 1. Workshop for retailers: - Workshop should be conducted in such a place of a locality where in it is easy for the retailers to attend and get the necessary information of the new suspense ads in future. It should also be taken into consideration that there is minimum investment of time in this workshop because the retailers will think that it is wastage of time. This will be the motivating factor for the retailers because they will think that the company is showing interest in helping them to increase their sales. This in turn will help the company increasing its sales. Therefore the company should take necessary steps in organizing the workshops. 2. Print Media: - Print Media plays an important role after electronic media, because in the electronic media advertisements will be of hardly one minute and may not convey the full details. Pamphlets should be used as well as newspapers BABASAB PATIL MARKETING PROJECT REPORT MBA 64
  • 65. Impact of TV advertisement 3. 9+1 OFFER: - Offering of 9 + 1 scheme to retailers so that they will be induced to purchase more cases and can push our product to the consumers instead of other Brands. This offer will be helpful to convert mixed outlets to Pepsi monopoly. BABASAB PATIL MARKETING PROJECT REPORT MBA 65
  • 66. Impact of TV advertisement COST OF THE WORKSHOP AND PRINT MEDIA WORKSHOP: - The cost of workshop will be high therefore to reduce this the company people can actively participate instead of hiring outside people. PRINT MEDIA: - The cost of print media will be less and it is a means of mass communication. BABASAB PATIL MARKETING PROJECT REPORT MBA 66
  • 67. Impact of TV advertisement ACHIEVEMENTS IN THE FORM OF LEADS Name of the outlet Location 1.Mega Bakery and sweets N. R. Mohalla 2. Karnataka Bakery Shantinagar 3. New Sri Krishna Bakery New Kantharaja Urs Road 4. Hassan Iyengars bakery Gokulam 3rd Stage 5.Vinayaka stores Vinayaka Nagar 6. Sweet Palace Jayalakshmipuram 7. Trupti Bakery and Cool Points Vagdevi Nagar 8. Sri Sudarshan Iyengar Bakery New Kantharaja Urs Road 9.Sri Ranga Iyengar Bakery T .K. Layout 10. Sri Ragavendra Iyengars Bakery Gokulam Main Road BABASAB PATIL MARKETING PROJECT REPORT MBA 67
  • 68. Impact of TV advertisement CHAPTER - IV BABASAB PATIL MARKETING PROJECT REPORT MBA 68
  • 69. Impact of TV advertisement QUESTIONNAIRE 1) NAME : 2) ADDRESS: 3) Do you know about Pepsi TV? YES No 4) What kind fob customers are walking in for 2 ltr Pepsi Bottles? Household Partygoers 5) Do you know about the benefits that you get on pet bottles? YES No 6) Do you think display will drive your sales? YES No COMMENTS BABASAB PATIL MARKETING PROJECT REPORT MBA 69
  • 70. Impact of TV advertisement BIBLOGRAPHY The information needed to complete this project was directly from, EXTERNAL GUIDES: - Mr. RAVINDRA PAI ADC PepsiCo INDIA Mr. SASANK C.E. PepsiCo INDIA (MYSORE) WEBSITE: - www.pepsico.com BABASAB PATIL MARKETING PROJECT REPORT MBA 70