This project is based on retailer satisfaction and distribution network.

1. 1
An Empirical Study of Distribution and Retailer Satisfaction
of Varun Beverages: In special reference to Ghaziabad City
Partial fulfillment of the Requirements for the Award of Post Graduate Diploma in Management
(Recognized by AICTE, Ministry of HRD, Govt. of India)
By
Pramod Kumar
PG-13-042
Batch 2013-15
Under the guidance of
Prof. Akanksha Uppal
Programme Coordinator (BBA)
INMANTEC, Ghaziabad
Integrated Academy of Management and Technology
Ghaziabad

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PREFACE
Marketing plays important role in today’s business scenario in consumer Product
Company, there is such a high competition in the market. Summer project in PGDM
program is providing job experience. In the summer program we gain academic
knowledge as well as corporate culture.
The emphasis in the project is providing the study and an insight into Indian FMCG
Business Scenario. The Summer Project is designed to provide participation of PGDM
program as on the job experience. This has given a chance to try and apply the
academic knowledge and gain insight into corporate culture. This helps in developing
decision-making abilities and emphasizes on active participation by the student.
I undertook my Project in Varun Beverages, a leading Bottler and Marketing partner of
the Pepsi Foods. During the training, I had worked on the project “An empirical study
of Distribution and Retailer satisfaction of Varun Beverages: In special reference to
Ghaziabad City”.
I gained valuable experience and knowledge during the survey. The project consists of
my findings, retailer’s behavior, and recommendations were drawn and finally
conclusions were put forward.

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ACKNOWLEDGEMENT
I would like to express my thanks to people for collective effort, who have given their
full support and valuable suggestions.
I can’t begin without you dear GOD. Thank you for being with me.
In my thanks list are my teachers, colleagues who really showered constructive
feedback and suggestions without which this report would not have been in present
form.
Now, it’s time to convey regards to those people who have helped me in this report.
Mr. Vipul Verma (Territory Development Manager), Varun Beverages Limited, who
guided me and acquainted me with all the information about the processes. And also
my mentor Mrs. Akanksha Uppal, Programme Co-ordinator BBA, who showed me the
right way to prepare this project report.
My humble thanks to Mr. Saurav Pandey (Customer Executive) and Mr. Ankur
(Customer Executive) for guiding me during the two months training.
Finally I must say thanks to my parents. They were like praising, encouraging me and
gave right direction in the preparation. They are the reason and real force behind my
writing.

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TABLE OF CONTENTS
Executive Summary 06
1. Introduction 07
1.1 Purpose of the study 08
1.2 Industry Overview 09
1.2.1 PEPSI- The Indian Experience 09
1.2.2 Company Profile- Jaipuria Group: In India 17
1.2.2.1A) Beverages 19
1.2.2.2 B) Food 22
1.2.2.3 C) Education 23
2. Literature Review 33
3. Research Objectives 34
4. Research Methodology 35
4.1 Research Design 35
4.2 Data Requirements 35
4.3 Data Collection Method and Instrument 35
4.4 Sampling and Sample Size 35
4.5 Data Analysis Technique 35
5. Data Analysis and Interpretation 36
6. Findings of the Study 50
7. Limitations of the Study 51
8. Recommendations 52
9. Conclusions 53
References 54
Annexure
Annexure A 55

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EXECUTIVE SUMMARY:
In this era of competition in beverages (Cold Drinks) there are two major companies
who deals in beverages, these are PepsiCo and Hindustan Coke, and both the
companies are trying to do their best to get a high market share in the cutting edge
competition into the market.
Although this study is completely based on the distribution and retailers satisfaction of
PepsiCo in the city of Ghaziabad, Uttar Pradesh, Where PepsiCo’s FOBO(Franchise of
Bottling Operations) i.e., Varun Beverages distribute the products of PepsiCo to
themyriad retailers on daily basis. Apart from the distribution I want to know about the
satisfaction of all the retailers of the same city in terms of schemes, profit margin etc.,
which they get from Varun Beverages.
The distribution network of PEPSI is well known for its efficiency but company
constantly strives from the betterment of their distribution network system. Emphasis
of my study was to focus on the customer of company i.e., the retailers.

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1. INTRODUCTION:
Distribution is a very important part for every company to sell their products in which
they are dealing, without a strong distribution it is very difficult for any company to
survive in the highly competitive market, But the thing is that is only distribution is
enough for the growth of the company? In this research my focus is to get a complete
idea about the way of distribution and retailer’s satisfaction in terms of relationship
building, profit margin, schemes that available to the retailers, highest selling product
of PepsiCo. In my research the company is Varun Beverages who is the manufacturer
and marketer of the brand Pepsi. As my study is for the city Ghaziabad where there are
a large number of retailers who selling the products of PepsiCo i.e., Pepsi, Mirinda
Orange, Mountain Dew, Slice, 7 Up, Nimbooz, Nimbooz Masala Soda, Lehar Soda,
Aquafina(water), Mirinda Lemon. Through this study I will try to get the satisfaction
level of retailers through the distribution services and profit margins they get by Varun
Beverages for selling the products of PepsiCo and also the highest selling product of
PepsiCo.
Soft drinks industry has become big business in India in recent years.
The soft drink business underwent major change with the entry of PEPSI and re-entry
of COCA-COLA in India in the late 80s when Parley with brands like Thumps up,
Limca and Gold spot was a clear leader. Coca-Cola took up the product line of Parley
in 1993-94; today both brands are the Indians favorite soft drinks

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1.1 PURPOSE OF THE STUDY:
This is an applied/ basic research study which is done only to get a clear view of the
topic An Empirical study of Distribution and Retailer Satisfaction of Varun Beverages:
In special reference to Ghaziabad City, this study helps me to understand the needs of
retailers in that city and also the perspectives of retailers towards the company.

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1.2 INDUSTRY OVERVIEW
1.2.1 PEPSI- THE INDIAN EXPERIENCE:
PepsiCo is a global food and beverage leader with net revenues of more than $65
billion and a product portfolio that includes 22 brands that generate more than $1
billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade,
Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are
loved throughout the world. PepsiCo’s people are united by our unique commitment to
sustainable growth by investing in a healthier future for people and our planet, which
we believe also means a more successful future for PepsiCo. We call this commitment
Performance with Purpose: PepsiCo’s promise to provide a wide range of foods and
beverages from treats to healthy eats; to find innovative ways to minimize our impact
on the environment by conserving energy and water and reducing packaging volume;
to provide a great workplace for our associates; and to respect, support and invest in
the local communities where we operate.
PepsiCo India Region: Leadership through Performance with Purpose
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.
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 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

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agriculture programme. PepsiCo India’s diverse portfolio includes iconic brands like
Pepsi, Lay’s,
Kurkure, Tropicana, Gatorade and Quaker. In two decades, the company has been able
to organically grow eight brands that generate Rs. 1000 crore or more in estimated
annual retails sales and are household names, trusted across the country.
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 Nutri Upma &
Nutri Poha 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. More than 45 percent of
these are small and marginal farmers with a land holding of one acre or less. PepsiCo
provides 360-degree support to the farmer through assured buy back of their produce
at pre-agreed prices, quality seeds, extension services, disease control packages, bank
loans, weather insurance, and the latest technological practices. The association with
PepsiCo India has not only raised the incomes of small and marginal farmers, but also
their social standing.
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 litres 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. PepsiCo is lauded for its efforts for water conservation and has received
numerous awards such as CII National award for water management, Water Digest

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award for water practices and Golden Peacock award for water conservation amongst
others.
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. Initiatives such as reduction in use of chemicals, eco-
friendly packaging initiatives and efficient waste management help reduce load on the
environment. 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’. The award winning programme has positively impacted more than
5, 00,000 people.
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 to local
talent. Its ‘College of Leadership’, ensures early identification of talent, and
employees’ focused development through critical experiences. PepsiCo firmly believes
that encouraging diversity means encouraging policies and systems that respect
people’s special needs. Not only does PepsiCo have a vibrant and diverse workforce, it
takes the utmost care to make dynamic business leaders of its employees and foster
their career and personal growth through differentiated experiences and a robust
leadership development model.
External Awards received by PepsiCo India in 2013
 Doc T.S.R. Murali, Head R&D, was awarded a Gold Medal by Secretary,
Ministry of Food Processing, and Government of India for his outstanding
contribution in supporting R&D, Innovation and growth of Food Processing
Sector in India.

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 Satharia plant was awarded LEED (Leadership in Energy and Environmental
Design) Gold Green Certification by Indian Green Building Council.
 India Region Finance and BIS team won UK’s Adam Smith award in
collaboration with Citibank for Best practices and innovation under the section
Asia Pacific Regional Award for Best Practices in the “Highly Commended’
category.
 PepsiCo India won the award for “Excellence in Developing the Leaders of
Tomorrow” at the second edition of the SHRM (Society for Human Resource
Management) India HR Awards.
 PepsiCo India’s Sangareddy Plant was recognized by CII with “Commendation
Certificate for Strong Commitment to Excel in Food Safety” in the category of
“Large Manufacturing Food Businesses – Beverages.
 PepsiCo India’s Sathariya, plant won the CII Award for Outstanding
Performance in Food Safety Excellence in the Category of ‘Rising Star; Large
Manufacturing Food Businesses – Beverages.’

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OUR MISSION AND VISION
At PepsiCo, we believe being a responsible corporate citizen is not only the right thing
to do, but the right thing to do for our business.
OUR 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.
OUR 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.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.

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PEPSICO VALUES & PHILOSOPHY
Our values and philosophy are a reflection of the socially and environmentally
responsible company we aspire to be. They are the foundation for every business
decision we make.
OUR COMMITMENT
We are committed to delivering sustained growth through empowered people acting
responsibly and building trust.
Sustained Growth is fundamental to motivating and measuring our success. Our quest
for sustained growth stimulates innovation, places a value on results and helps us
understand whether today's actions will contribute to our future. It is about the growth
of people and company performance. It prioritizes both making a difference and
getting things done.
Empowered People means we have the freedom to act and think in ways that we feel
will get the job done, while adhering to processes that ensure proper governance and
being mindful of company needs beyond our own.
Responsibility and Trust form the foundation for healthy growth. We hold ourselves
both personally and corporately accountable for everything we do. We earn the
confidence others place in us as individuals and as a company. By acting as good
stewards of the resources entrusted to us, we strengthen that trust by delivering on our
promises and remaining committed to succeeding together.

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Guiding Principles
We uphold our commitment with six guiding principles. We must always strive to:
1. Care for our customers, our consumers and the world we live in.
We are driven by the competitive spirit of the marketplace, but we direct this spirit
toward solutions that benefit both our company and our constituents. Our success
depends on a thorough understanding of our customers, consumers and communities.
To foster this spirit of generosity, we go the extra mile to show we care.
2. Sell only products we can be proud of.
The true test of our standards is that we are able, without reservation, to consume and
personally endorse the products we sell. Our absolute endorsement extends to every
part of the business, from the purchase of ingredients to the point where our products
reach consumers.
3. Speak with truth and can dour.
We tell the whole story, not just what is convenient to our individual goals. In addition
to being clear, honest and accurate, we take responsibility for ensuring that our
communications are understood.
4. Balance the short term and long term.
In every decision, we weigh both short-term and long-term risks and benefits.
Maintaining this balance helps sustain our growth and ensures that our ideas and
solutions are relevant both now and in the future.

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5. Win with diversity and inclusion.
We embrace people with diverse backgrounds, traits and ways of thinking. Our
diversity brings new perspectives into the workplace and encourages innovation, helps
us identify new market opportunities, develop new products and sustain our
commitment to growth through empowered people.
6. Respect others and succeed together.
We depend on people who can work together, whether in structured teams or through
informal collaboration. Mutual success depends on mutual respect, for both those
within and outside the company. While our company is built on individual excellence,
the value we attach to teamwork and mutual respect turns our goals into
accomplishments.

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1.2.2 Company Profile- Jaipuria Group: In INDIA
Varun Beverages is an Indian company which is owned and maintain by Ravi Kant
Jaipuria the R.K.J Group who Manufacture and Market the brand Pepsi to all over the
India since 1991 with a tie-up with Pepsi food limited to manufacture and market
Pepsi brand of beverages in geographically pre-defined territories in which brand and
technical support was provided by the Principals viz., Pepsi Foods Limited. The
manufacturing facilities were restricted at Agra Plant only.
Varun Beverages Ltd. is the flagship company of the group.
The group also became the first franchisee for Yum Restaurants International
[formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive
franchise rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants
& 1 KFC Restaurant under its company.
The group is also in education sector they open their first school in Gurgaon under
management of Delhi Public School Society. The schools of the group are run under
a Registered Trust namely, Champa Devi Jaipuria Charitable Trust.
Companies are medium sized, professionally managed, unlisted and closely held
between Indian Promoters and foreign collaborators.
The group added another feather to its cap when the prestigious PepsiCo
"International Bottler of the Year" award was presented to Mr. R. K. Jaipuria for the
year 1998 at a glittering award ceremony at PepsiCo's centennial year celebrations at
Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of
PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr.
Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig
Weatherup, President of Pepsi Cola Company.
1) The group is India's leading supplier of carbonated and Non-Carbonated soft
drinks under Pepsi brand.
2) Running a Pizzas chain, the group has carved a niche for itself in the Indian food
market.
3) Associated with excellence in education the group has taken a big leap in this
segment.

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Vision of the Company:
Being the best in everything we touch and handle.
Mission of the Company:
Continuously excel to achieve and maintain leadership position in the chosen
businesses; and delight all stakeholders by making economic value additions in all
corporate functions.
Main Credentials:
1) Varun Beverages Limited received “Gold Standard Award” for the production
and quality control for the year 1996-97.
2) Jaipuria group was adjudged “Best Bottler” out of more than 2000 bottlers all
over the world for the year 1996-97.

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1.2.2.1 BEVERAGES:
Indian Beverages industry's size is Rs. 8000 Crore and it is dominated by two players
viz Pepsi & Coke only. This high profile industry has lot of potential for growth as
per capita consumption in India is 8 bottles a year as compared to 20 bottles in Sri
Lanka, 14 in Pakistan, while 12 bottles a person in Nepal.
The RKJ group is India's leading supplier of retailer brand carbonated and Non-
Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its
experience in the beverage industry dates back to the sixties when it had the first
franchise at Agra.
The group manufactures and markets Carbonated and Non-Carbonated Soft Drinks
and Mineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi,
Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, Slice Orange,
Evervess Soda and Aqauafina.
It has the license to supply beverages in the territories of Western U.P., part of M.P.,
half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of
Karnataka and whole of Nepal. The group has in total 18 bottling plants in India &
Nepal and is responsible for producing and marketing 44% of Pepsi requirement in
India.

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INGREDIENTS OF SOFT DRINKS:
PEPSI only use the finest ingredients to make Pepsi-Cola products. To guarantee our
consumers consistent quality, each ingredient must pass our high standards, rigorous
quality control tests and strict bottling procedures.
Pepsi-Cola products contain natural flavors, including extracts of the kola nut and
flavor oils derived from natural sources such as citrus and other fruits. Caramel (made
from corn sugar) adds color and flavor to their colas. Other ingredients add a
refreshing taste: phosphoric acid in Colas; citric acid and sodium citrate in Mountain
Dew, Slice and Diet Pepsi.
We also put a freshness date on every can and bottle. Soft drinks may lose some flavor
over time so out freshness date tells consumers when the product is freshest and best
tasting.
Every can and bottle of Pepsi-Cola products has a Nutrition facts panel, which shows
the number of calories and other nutrients per serving. There is an essentially no fat in
any PepsiCo product. The main ingredients found in Pepsi-Cola products include
carbonated water, carbohydrates, sugar, sodium, potassium and caffeine.
 Ascorbic Acid
 Aspartame
 Blue 1
 Brominated Vegetable Oil (BVO)
 Caffeine
 Caramel
 Citric Acid
 Gum Arabic

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 High Fructose Corn Syrup
 Natural Flavorings
 Phosphoric Acid
 Potassium
 Quillaia
 Red 40
 Sodium
 Sugar
 Total Carbohydrates
 Yellow 5

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1.2.2.2 FOOD:
The last decade has been a period of dynamic growth for non-alcoholic drinks and
has witnessed completely new segment of the food market in India taking shape. To
capitalize on the RKJ group’s significantly important relationship with Pepsi Foods,
it decided to venture into Foods sector, which is second largest business for Pepsi all
over the world. Fast food is the most happening things across the world.
The group became the first franchisee for Yum Restaurants International [formerly
PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise
rights for Northern & Eastern India. Out of 56 operational Pizza Hut restaurants in
the country 27 restaurants are owned and run by its company. These restaurants are
located at Defence Colony, Alaknanda, Vikas Puri, Green Park, Karol Bagh, New
Friends Colony, Connaught Place, Basant Lok, Greater Kailash, Jaipur (2), Agra,
Noida (2), Faridabad (2), Chandigarh (2), Ludhiana, Jallandhar, Amritsar, Gurgaon
(3), Kushambi(Ghaziabd) and Kolkatta (2).
All these restaurants are making good profits & are dominating the market. The
name of business entity is Devyani International Private Limited.
Ice Creams under "Candia" brand
The group has its presence in the Ice Cream segment since 1991, when it started
manufacturing and marketing Ice Cream under the brand name of "Gaylord" in the
state of U.P.
During 1996 it sold its brand to Brooke Bond and started supplying Ice Cream to
Hindustan Lever as their Ice Cream sourcing plant. After working for 10 years in
this field, during 2003 it has launched its own brand in technical and marketing
collaboration with Candia of France.

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1.2.2.3 EDUCATION:
The R K J Group has been associated with excellence in education. It strongly
believes that investment in quality care and education for young minds is essential
for the future growth and development of our country. The group's foray into the
school education is intended to provide exceptional opportunities for the
development of the academic abilities of the students. The schools run by the group
encourage students to become creative, innovative and imaginative. They have a
wide range of co-curricular activities, which are as important as the academic
disciplines.
School life merges with a plethora of activities to suit every schedule, talent and
interest in the areas like indoor and outdoor games, swimming, art and culture,
music and drama, Yoga and martial arts, community service, etc. The school's
approach to education has been designed to ensure that the students realize their true
potential and grow up to become complete individuals and responsible citizens.
The group's foray into pre-school education is in line with educational projects of the
group. "We see no competition because pre-school education is a niche market.
There is no specialized way of teaching preschoolers here", says Jaipuria. The year
2001 witnessed the further spread of the group's portfolio with the opening of its first
school at Gurgaon under the management agreement with Delhi Public School
Society. To expand in the field of education it opened its second school at Jaipur
under the management of same society.

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ADVERTISEMENT AND ADD CONCEPT:
PepsiCo has taken several important steps to ensure we are employing responsible
advertising practices. We helped found the International Food & Beverage Alliance
(IFBA), a Swiss-based NGO comprising multinational food and beverage
manufacturers, to adopt a worldwide voluntary commitment to advertise to children
under the age of 12 only those products that meet specific nutrition criteria. PepsiCo
also adopted a global company policy that is consistent with IFBA's policy.
In 2010, we announced strict science-based criteria that state that only our most
nutritious products, such as Quaker Oats, meet the standard for advertising to children
under the age of 12. We achieved 99 percent compliance with this policy by the end of
2012 in globally representative markets such as Russia, China, Saudi Arabia and six
countries in the EU, all of which were monitored for compliance with our Advertising
to Children Policy.
We strengthened our Advertising to Children Policy in 2012 to define advertising to
children to mean that we will not buy advertising in programs with an audience profile
consisting of more than 35 percent of children under 12 years of age. Previously, our
policy applied to audiences consisting of more than 50 percent of children under 12
years of age. This policy change is currently being rolled out and will be fully
implemented by the end of 2013.
Additionally, we achieved 100 percent compliance in the U.S. and Canada, as verified
by the Children's Food & Beverage Advertising Initiative and Advertising Standards
Canada, respectively.
Many PepsiCo-owned bottling operations have helped to remove full calorie soft
drinks from primary and secondary schools. We are working with local communities
and schools to focus on providing water, juices, milk and low-calorie beverages in
support of healthy nutrition habits.
Advertisements are cost effective means to communicate messages and ideas to build
brand preferences and awareness and it is one of the most important tools which a
company uses to direct persuasive communication to directive buyers in public or to
educate to avoid hard drink and so on.
The basic objective of advertising is sales promotion, sales promotion expenditure
have been increasing as a percent of budget expenditure annually and the growth is
likely to continue in future.

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CELEBRITIES SIGNED BY THE PEPSICO ARE AS FOLLOWS:
Cine stars
 Ranvir Kapoor(Brand Ambassador Pepsi)
 Aseen (Brand Ambassador Mirinda)
 Hrithik Roshan (Brand Ambassador Mountain Dew)
 Katrina Kaif (Brand Ambassador Slice)
 Kareena Kapoor
 Shahrukh Khan
 Kajol
 Adnan Sami
 Fardeen Khan
 Amitabh Bachhan
 Govinda
 Rani Mukherjee.
Cricketers
 MS Dhoni
 Sachin Tendulkar
 Rahul Dravid
 Yuvraj Singh
 Harbhajan Singh
 Zaheer Khan
Tennis Star
 Leander Paes
 Mahesh Bhupati
Football Players
 Cyrus Broacha
 Bhaichung Bhatia

27. 27
TYPES OF PACKS AVAILABLES:
S.No Product Name MRP TP SCHEME
1 200 ML 8 161 NET
2 200 ML 10 199 NET
3 250 ML Slice 14 314 2 BTL 250 ML Slice
4 300 ML 12 242 NET
5 300 ML 15 310 NET
6 300 ML Soda 8 168 2 BTL 300 ML Soda
7 600 ML 30 620 NET
8 600 ML 33 742 1 BTL 600 ML @33
9 600 ML 35 755 NET
10 600 ML Slice 35 755 NET
11 600 ML Soda 15 307 1 BTL 600 ML @15
12 1.25 LT Slice 60 625 NET
13 1.25 LT 52 537 NET
14 1.25 LT 50 516 NET
15 250 ML Can 20 440 NET
16 2.25 LT 75 540 NET
17 350 ML NMS 20 430 NET
18 Aquafina 18 150 NET

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DISTRIBUTION NETWORK OF PEPSI:
Company
COBO FOBO
WAREHOUSE
C & F Agent DISTRIBUTOR
SALESMAN
SALESMAN
WHOLESALER
RETAILER
CUSTOMER
CUSTOMER

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Initially the focus of the company remains on reaching all the markets and then
company shift its focus on increasing the frequency of sales in the respective markets
so that all the sales and profitability of company increased.
COBO: these are the Company Own Bottling Operations operating directly under the
company. Out of the 32 bottling plants PepsiCo owns 15.
FOBO: these are the Franchise Own Bottling Operations. R K Jaipuria group does all
franchisee bottling operations for PepsiCo India; currently R.K.J group has 17 bottling
plants for Pepsi.
WAREHOUSES: these are the company owned warehouses spread over various
locations that cover the respective territories and come under the purview of their
respective area or territory offices. Stocks are sent from the bottling plants to these
warehouses, from where they are sent to the c & f centers and distributor point.
C & F CENTER: these are the biggest centers in the distribution network and
received proper assistance from the company (either cobo or fobo) the c & f center is
owned by the company and the salesman at c& f point are on the company payroll .
DISTRIBUTORS: these are smaller than c & f center. Everything at the distributor
point owned and managed by distributor, even the sales person are on the distributors
payroll
WHOLESALERS: These are smaller than c & f centers and distributors points and
get the stock directly from the company or franchisee. They get their stock directly
from the company and thus get special rates and extra discount from the company

30. 30
RETAILER: Retailers are the most important chain in the distribution channel of
Pepsi as they are the only point of contact with the customers. Retailers get their stock
from all the other channel members in the distribution channel.
DISTRIBUTION STRATEGIES:
A company can choose any of the following distribution types:
 Exclusive Distribution
 Selective Distribution
 Intensive Distribution
“PEPSI” HAS ADOPTED THE INTENSIVE DISTRIBUTION STRATEGY.
INTENSIVE DISTRIBUTION:
A strategy of intensive distribution is characterized by placing the goods or services in
as many outlets as possible. When the consumer requires a great deal of location
convenience, it is important to offer greater intensity of Distribution. This strategy is
generally used for convenience items such as Tobacco, Gasoline, and Soap, Snack
foods and Bubblegum.
Manufactures are constantly tempted to move from exclusive or selective distribution
to more intensive distribution to increase their coverage and sales and you could find
Pepsi in nursing homes, confectionery shops, departmental stores; you name it and
Pepsi is available there.

31. 31
DISTRIBUTION CHANNEL REDEFINED:
Pepsi has redefined distribution to strengthen their competitive advantage in the
emerging consumer and market scenario. Their earlier focus was to drive wide
availability and enable easy access to their brands for consumers. Now they seek to go
well beyond this distribution paradigm. Their new approach is more holistic touching
consumers in multiple ways at the point of purchase and more importantly, creating
opportunities for customers to receive brand message and experience our brands.
They are proactively addressing these emerging trends by approaching distribution and
channels in a much broader way. They are shifting emphasis from mere reach or
availability expansion to touching consumers with a 3-way convergence of product
availability, brand communication and higher level of brand experience.
They are thus going beyond delivering products and creating greater engagement and
interaction around the purchasing experience.
Product
Availability
Point of
Purchase
Brand
Communication
Brand
Experience

32. 32
Pepsi’s reinvention of distribution built on an understanding of emerging consumer
trends, the retail environment and the growth drivers of our brands.
Pepsi’s distribution system is a key external resources. Normally it has taken years to
build and cannot be easily changed. It ranks in importance with key internal resources
such as manufacturing, research, engineering and field sales personals. It represents
significant corporate commitment to set policies and practices that constitute the basic
fabric on which is woven an extensive set of long run relationship.

33. 33
FACILITIES PROVIDED BY THE COMPANY TO THE RETAILER:
1) Visicooler
 220 Lt.
 400 Lt.
 450 Lt.
 500 Lt.
 600 Lt.
 1000 Lt.
According to outlet nature, volume and investment of the outlet.
2) Display Materials
 Stickers
 Banners
 Racks
 Counters
 Umbrellas
 Chairs
 Tables

34. 34
2. LITERATURE REVIEW:
PepsiCo Inc. is an American multinational food and beverage corporation
headquartered in Purchase, New York, United States, with interests in the
manufacturing, marketing and distribution of grain-based snack foods, beverages, and
other products. PepsiCo was formed in 1965 with the merger of the Pepsi-
Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake
product Pepsi to a broader range of food and beverage brands, the largest of which
includes an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001—
which added the Gatorade brand to its portfolio.
According to Muneesh Kumar (2013) in his report on Distribution Strategy of Pepsi-
Varun Beverages Limited he said that the market coverage of Pepsi in the Ghaziabad
City is 55% according to his analysis he also found that service quality of Pepsi is 58%
which is more than the Coke and other competitors of Pepsi.
In all over the India PepsiCo provides their products efficiently and effectively with
the help of 23 years old distributor Varun Beverages Limited, there is a cutting edge
competition between beverages industries in this competition Varun Beverages do its
best to deliver the goods on time to every retailer so that the market share of PepsiCo’s
can grow, for doing this Varun Beverages wants skilled man power as well as
transportation for achieving its day to day operations, In the Mohan Nagar depot of
Varun Beverages they have 18(Eighteen) different routes in all over the Sahibabad it
includes, Mohan Nagar, Lajpat Nagar, Bhopura, Loni, Dilshad Garden boarder,
Vaishali, Indirapuram, Kaushambi etc etc, in those routes some of the routes like
Indirapuram, Vaishali, Kaushambi are long so they have 3 to 4 other transportation for
the same routes by other sales man to cover all that area in one day and so on every
day.

35. 35
3. OBJECTIVES OF THE STUDY:
In this study my objective is to understand the distribution channel and retailer
satisfaction about the services of Varun Beverages and I also want to know the
following:
 To find out the distribution system of Sahibabad City is enough to deliver goods
to every retailer.
 To find out the satisfaction of retailers in terms of profit margin, timely delivery
of goods, relationship among all the sales man and retailers.
 To find out which product of PepsiCo is highest selling product in the Sahibabad
City.
 To find out whose executives are frequently visit and solve the problems of the
retailers.

36. 36
4. RESEARCH METHODOLOGY:
4.1 Research Design and Plan:
A descriptive research design was formulated to achieve the objectives laid out for the
present study. A descriptive research design using survey methods was chosen to find
out the prevalent marketing practices taken up by the retailers for the marketing of
PepsiCo’s product. The respondents are selected randomly for data collection.
Structured questionnaire was used to collect primary data, consisting of 11 questions.
100 samples were collected throughout Sahibabad by adopting the method of personal
interview.
4.2 Sampling and Sample Size:
The present study was conducted in the area of Sahibabad city. The samples were the
retailers of the Sahibabad city and the sample size is of 100 respondent.
4.3 Data Collection Instruments/ Sources and Procedures:
The purpose of collecting data was to perform a research on Distribution and
Retailer’s Satisfaction in Ghaziabad City. In this research, an anonymous
questionnaire was administered to collect data. The total number of questionnaires
administered were 100. Because of the large area of the city and the large number of
retailers also I decided to filled the questionnaire from the every locality of Ghaziabad
i.e., Mohan Nagar, Lajpat Nagar, Rajender Nagar, Shalimar Garden, Vasundhara,
Vaishali, Indirapuram, Kaushambi, etc., 100 questionnaires which carries 11 questions
each were filled in these areas to get an idea of satisfaction level from each area.
4.4 Data Analysis Techniques:
The data collected were analyzed for the entire sample. Data analyses were performed
with Statistical Package for Social Sciences (SPSS) using techniques that included
descriptive statistics.

37. 37
5. DATA ANALYSIS AND INTERPRETATION:
1. On the basis of timely delivery of goods to the retailers:
Among all 100 respondents, 93 were said they get the timely delivery of goods
whereas 7 said they don’t.
Do you get timely delivery of PepsiCo's Products
by Varun Beverages
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Vali
d
Yes 93 93.0 93.0 93.0
No 7 7.0 7.0 100.0
Total 100 100.0 100.0

38. 38
2. On the basis of whether retailers meet the needs of end consumers or not:
Among all 100 respondents, 89 said they meet the end consumers’ needs of PepsiCo’s
products whereas 11 said they cannot meet the needs of end consumers.
You meet end consumer's needs
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Vali
d
Yes 89 89.0 89.0 89.0
No 11 11.0 11.0 100.0
Total 100 100.0 100.0

39. 39
3. On the basis of satisfaction level of retailers by the distribution of Varun
Beverages Limited:
Among all the 100 respondents, 7 said the distribution is poor, 8 said the distribution is
average, 37 said the distribution is good, 21 said the distribution is very good, and 27
said the distribution is excellent.
Satisfaction level from distribution channel of Varun
Beverages
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Vali
d
Poor 7 7.0 7.0 7.0
Average 8 8.0 8.0 15.0
Good 37 37.0 37.0 52.0
Very
Good
21 21.0 21.0 73.0
Excellen
t
27 27.0 27.0 100.0
Total 100 100.0 100.0

40. 40

41. 41
4. On the basis of satisfaction level of retailers in terms of profit margin:
Among all 100 respondents, 8 said the profit margin is poor, 35 said it is average, 36
said it is good, 12 said it is very good, and 8 said the profit margin is excellent.
Satisfaction level from profit margin
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Vali
d
Poor 8 8.0 8.0 8.0
Average 35 35.0 35.0 43.0
Good 36 36.0 36.0 79.0
Very
Good
12 12.0 12.0 91.0
Excellen
t
9 9.0 9.0 100.0
Total 100 100.0 100.0

42. 42

43. 43
5. On the basis of the problems retailers have from the distribution of Varun
Beverages Limited:
Among all 100 respondents, 32 said they have problems and 68 said that they do not
have any problem with PepsiCo’s distributor Varun Beverages.
Problems from Varun Beverages, if any
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Vali
d
Yes 32 32.0 32.0 32.0
No 68 68.0 68.0 100.0
Total 100 100.0 100.0

44. 44
6. On the basis of the types of problems that retailers have from the PepsiCo’s
distributors Varun Beverages Limited:
Among all 100 respondents, 10 said the profit margin is less, 11 said they do not have
visicooler, 4 said they do not get any merchandising like t-shirts, boards, banners, stall
etc., 2 said that there is always a shortages of goods of PepsiCo, 5 said others which
includes no bill, salesman cannot place the goods properly etc.
What are those Problems
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Valid Less Profit
Margin
10 10.0 31.2 31.2
No Visicooler 11 11.0 34.4 65.6
No
Merchandisin
g
4 4.0 12.5 78.1
Always
Shortage
2 2.0 6.2 84.4
Others 5 5.0 15.6 100.0
Total 32 32.0 100.0
Missin
g
System
68 68.0
Total 100 100.0

45. 45

46. 46
7. On the basis of highest selling product of PepsiCo
The highest selling product of PepsiCo in Sahibabad is Mountain Dew which is on
number 1 position followed by Slice which is at 2nd
position, the bar chart shows that
out of every 100 pieces of cold drink of PepsiCo, Mountain Dew is 69, Slice is 47,
Aquafina (water) is 45, Pepsi is 36, Nimbooz Masala soda is 19, Mirinda is 18,
Nimbooz 10, 7 Up and Lehar Soda is 9, Lemon is 3
0
10
20
30
40
50
60
70
Pepsi Dew Slice 7 Up Nimbooz Nimbooz
Masala
Soda
Lehar
Soda
Aquafina Mirinda Lemon
Highest selling per 100 Bottles

47. 47
8. On the basis of whose executive visit retailers shop more frequently:
Among all 100 respondents, 91 said that PepsiCo’s FOBO(Franchise of Bottling
Operations) Varun Beverages Limited’s executives are more frequently visit their
shops whereas 8 retailers said that Coca Cola’s executives are more frequently visit
their shops and only 1 retailer said that others(Parle Agro, Delmontte, Catch etc.) visit
their shop.
Whose executives frequently visit your shop from
Pepsi and its competitors
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Vali
d
PepsiCo 91 91.0 91.0 91.0
Coca
Cola
8 8.0 8.0 99.0
Others 1 1.0 1.0 100.0
Total 100 100.0 100.0

48. 48
9. On the basis of whose quality of product is better between PepsiCo and its
competitors:
Among all the 100 respondents, 77 were said that PepsiCo’s product is better than its
competitors, whereas 23 said that PepsiCo’s product quality is not better than its
competitors especially Coke.
Do you think PepsiCo’s Product is better than its
competitors
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Vali
d
Yes 77 77.0 77.0 77.0
No 23 23.0 23.0 100.0
Total 100 100.0 100.0

49. 49
10. On the basis issues related with product, visicooler, display etc. are
rectify by Varun Beverages Limited:
Among all 100 respondents, 70 said that yes their every problems are solved by Varun
Beverages Limited, 9 said their problems are not solved by them, and 21 said that their
problems are solved by Varun Beverages Limited but sometimes only.
Is problems solved by personnel’s of Varun
Beverages
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Vali
d
Yes 70 70.0 70.0 70.0
No 9 9.0 9.0 79.0
Sometim
es
21 21.0 21.0 100.0
Total 100 100.0 100.0

50. 50

51. 51
6. Findings of the study:
Retailers of PepsiCo’s products are satisfy in terms of delivery of goods, profit margin,
and relationship building from salesman and vice-versa. I also found in this study
mostly retailers like to purchase Mountain Dew as compare to Pepsi that shows
demand of Mountain Dew is more in the city of Ghaziabad. Almost all the salesman
have a good relationship with their prospective retailers and those retailers are very
trustworthy to them, they buy goods from salesman on credit sometimes but pay the
full amount in the same day in the evening that shows their friendly behavior towards
each other. Apart from this I also find that:
 Retailers were paid when company i.e., PepsiCo give them some display
to show in their shops.
 Retailers in the Sahibabad city is satisfy with the services they get from
Varun Beverages Limited.
 Even the salesman were not much educated still they do a good job and
fulfill their targets.
 Salesman are very experienced so they build a good relationship with the
retailers.
 A lot of shops even which is from 25 years old in the market of Sahibabad
City are used to sale only PepsiCo’s products that shows the loyalty of the
retailers towards PepsiCo.

52. 52
7. Limitations of the Study:
In this research study some of the limitations is as follows:
 The study has not been intended on a very large scale, have the possibility of
errors, which cannot be ruled out.
 As Ghaziabad city is very large in area and the whole city cannot be covered in
very short period of time, so, my study is restricted to only in Sahibabad city.
 Only 100 questionnaire were not enough to get the exact result of whole the city.
 Less time for the research.
 It is extremely difficult to persuade retailer to respond to questionnaire.
 A lot of retailers were illiterate, so in the process of asking questions they create
difficulties by not understanding the questions clearly.

53. 53
8. Recommendations:
The research has been done in order to find out the satisfaction level of retailers in
Sahibabad City who used to sale the products of PepsiCo the satisfaction in terms of
profit margin, service quality, and timely delivery of products by PepsiCo’s FOBO
(Franchise of Bottling Operations) Varun Beverages Limited. In order to
recommendation for this research I would like to say that the facts and figure which I
found definitely will be of importance. I found that PepsiCo’s FOBO i.e., Varun
Beverages are trying really very hard to get a high market share in the competition
against Coke and it will surely be happen if Varun Beverages gives little more
attention on the problems of the retailers, some of the problems faced by retailers were
as follows:-
a) Visicooler not received within the season.
b) Due to shortages customer buy other products instead of PepsiCo’s
products especially slice.
c) Company do advertisement of its new product (Slice new flavors) and
cannot provide it to the retailers and the end customer demands as per
the advertised product.
So, these are some problems which retailers were facing now, so my recommendation
is that company have to give the solution of these problems to their retailers. The study
also reveal out the facts such as which product of PepsiCo is highest selling product
among all the products of PepsiCo. The quality of products is also good but sometimes
some bottles have less quantity and some have more especially in Pepsi.

54. 54
9. Conclusion:
1) After visiting nearly 400 outlets including sample population, I found that
Pepsi and its Brands is doing a good job in Sahibabad. It is clear that Pepsi
(77%) has lagging Coke (23%) in the soft drink market in terms of quality
products in Sahibabad city.
2) At this time it is solely depends on the retailers which brand they offers to the
customer?
3) The study shows that the retailers are satisfy in the city of Sahibabad with the
service quality of Varun Beverages Limited which is a Franchise of Bottling
Operations of PepsiCo in India in terms of timely delivery, profit margin,
relationship building, problem solving
4) But due to the cutting edge competition it is very important to save our
existing customers rather than creating new one, so Varun Beverages must
have given some extra attention towards the needs of their existing retailers,
they have to solve the problems of retailers more speedily, some of the
retailers were facing the problems of visicooler which is a cooling machine
for soft drinks and it is very important that a visicooler must be working
properlyin the summers but when a visicooler got some trouble Varun
Beverages take too much time to solve it and that’s create the dis-satisfaction
in the minds of the retailers
5) So I conclude that Varun Beverages must have to give extra support to their
retailers on the following problems which I also describe in
recommendations, and it is as follows:
a) Visicooler not received within the season.
b) Due to shortages customer buy other products instead of PepsiCo’s
products especially slice.
c) Company do advertisement of its new product (Slice new flavors) and
cannot provide it to the retailers and the end customer demands as per
the advertised product.

55. 55
References:
Websites:
www.rkjworld.com
www.pepsicoindia.co.in
www.jaipuiagroup.com
http://www.wikipedia.org
http://www.slideshare.com
http://www.google.com
http://www.businessworld.com
Books:
Research Methodology – G. S Ramamurthy

56. 56
Annexure A:
Questionnaire:
Varun Beverages Limited
An Empirical Study of Distribution and Retailer Satisfaction
Of Varun Beverages: In special reference to Ghaziabad City
Owner’s Name …………………………… Shop’s Name…………………………………………………….
Address of the shop…………………………………………………Phone Number………………………….
How long you have this shop………….………How long you sold soft drinks……………………………….
1) Do you sell PepsiCo’s products?
a) Yes b) No
2) Do you think you get the products of PepsiCo on time by distribution channel of Varun Beverages
Limited?
a) Yes b) No
3) Do you think you meet needs of the end consumers through products of PepsiCo?
a) Yes b) No
4) Please specify your satisfaction level from the distribution services of Varun Beverages?
a) Poor b) Average c) Good d) Very Good e) Excellent
5) What is your satisfaction level in relation to profit margin?
a) Poor b) Average c) Good d) Very Good e) Excellent
6) Do you have any problem from the distribution channel of Varun Beverages Limited?
a) Yes b) No

57. 57
7) If yes, what are those problems?
a) ……………………….
b) ……………………….
c) ……………………….
d) ……………………….
e) ……………………….
8) Please give ranking from 1 to 5 to those products of PepsiCo’s which sell more( where 1 is for less
selling and 5 is for high selling?
Products 1 2 3 4 5
Pepsi
Mountain Dew
Slice
7 Up
Nimbooz
Nimbooz Masala
Soda
Lehar(Soda)
Aquafina(Water)
Mirinda
Lemon
9) From PepsiCo and Competitors of PepsiCo whose executive is more frequently visit your shop?
a) PepsiCo b) Coca Cola c) Parle Agro d) others
10) Do you think the quality of PepsiCo’s product is better than its competitors?
a) Yes b) No
11) Do you think issues related with product, visicooler, display etc. are rectify by Varun Beverages
Limited?
a) Yes b) No c) Sometimes