This document provides an overview of PepsiCo's history and operations. It discusses how PepsiCo was formed through the merger of Pepsi-Cola and Frito-Lay in 1965. It also outlines PepsiCo's major brands and business divisions, including Frito-Lay North America, Quaker Foods North America, and PepsiCo International. The document gives a brief timeline of important events in PepsiCo's history, such as its expansion through acquisitions of Tropicana in 1998 and Quaker Oats in 2001.
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1. A
PROJECT REPORT
ON
“STUDY ON DISTRIBUTION OF PEPSICO THROUGH THE
RETAILERS IN PATNA CITY”, PATNA
SUBMITTED TO
UNIVERSITY OF PUNE
FOR PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE
MASTERS IN MARKETING MANAGEMENT
SUBMITTED BY
ABDUL QUADIR
(BATCH 2011-13)
UNDER THE GUIDENCE OF
PROF. A. RAM KUMAR
SINHGAD INSTITUTE OF MANAGEMENT VADGAON, PUNE-411041
(2011-2013)
1
2. Declaration
I Abdul Quadir do hereby declare that the project entitled “STUDY ON
DISTRIBUTION OF PEPSICO THROUGH THE RETAILERS
IN PATNA CITY”, PATNA Carried at “LUMBINI BEVERAGES PVT.
LTD.”, Patna is an original work carried out by me under the guidance of
Prof. A. Ram Kumar, in partial fulfillment of Post-Graduation Program
during academic year, all the data represented in this project is true and correct
to the best of my knowledge and belief. This work has not been submitted for
any other degree / diploma exam elsewhere.
Place: Pune Abdul Quadir
2
Date:
3. Acknowledgement
A Project usually falls short of its expectation unless guided by the right person at the
right time. Success of a project is an outcome of sincere efforts, channeled in the right
direction, efficient supervision and the most valuable professional guidance.
This project would not have been completed without the direct and indirect help and
guidance of such luminaries. They provide me with the necessary recourses and
atmosphere conductive for healthy learning and training.
At the outset I would like to take this opportunity to gratefully acknowledge the very
kind and patient guidance I have received from my project guide Mr. S. Banerjee.
Without his critical evaluation and suggestion at every stage of the project, this report
could not have reached its present form. I would like to convey my sincere thanks to the
Director of SIOM Dr. S.D. Awale for his encouragement. In addition, my internal
guide Prof. A. Ram Kumar; Faculty has critically evaluated my each step in
developing this project report. Lastly, I would like to thank all the members of
Lumbini Beverages Pvt. Ltd. And my colleagues who gave me fruitful
3
information to finish my project.
4. TABLE OF CONTENTS
Sr. No. Topic Page no
1 Executive Summary
2 Introduction 1-3
3 Company profile 4-17
4 Conceptual Background 18-29
5 Research Methodology 30-32
6 Data Analysis & Interpretation 33-48
7 Findings, Suggestions and Conclusion 49-51
8 Bibliography & Webliography 52
9 Annexure 53-55
4
5. EXECUTIVE SUMMARY
Title of the Project: “STUDY ON DISTRIBUTION OF
PEPSICO THROUGH THE RETAILERS IN PATNA CITY”,
Introduction:
I was assigned to study the pre sale booking system at Lumbini Beverages Pvt. Ltd. Pre sale
booking activities play a greater and important role in the entire marketing effort being
carried out by Lumbini Beverages Pvt.Ltd, “to generate more sales as well as to create and
maintain relations with the retailers”.
Thus Lumbini Beverages Pvt. Ltd carried out its pre sale booking system activities as a
controlled and integrated program of communication and material design to present its soft
drink to the prospective customer. It also helps in communication the need satisfying
qualities of soft drink, to facilitate the sales and eventually to contribute towards the profit in
long range.
When Mr. Rajeev Gandhi came into the power as Prime Minister of India, then it
was expected the liberalization of Indian economy. This was the expectation of his
modern concept regarding every walk of life. When Pepsi has appealed on our collective
consciousness of few years ago to be more exact in April 1989. When it set up operation
for beverages snack foods and export business. The establishment of Multinational
Company Pepsi was supposing to prediction in present Indian business scenario.
5
About The Project:
The project was carried to find out the following objective:-
1. To study and analyze pre sale booking system.
2. To know retailer perception and response to pre sale booking system.
6. 3. To evaluate performance of Pilot Sales Representative (PSR’s).
4. To find out the problems retailer are facing.
5. To know about the stock position of Pepsi product at different outlets.
6
Findings:
According to the survey we came to know that most retailers prefer pre sale
booking system because of timely availability of stocks, proper communication among
the retailers and PSR’s. Retailers are the good intermediaries so the company should give
more packages to the retailers, by which they can looks towards the high sales of this
particular brand. Sometimes absence of stocks annoys retailer and consumers, so
company should keep a watch to the availability of brand. Most of the retailer’s
satisfaction towards distributor’s performance is neutral some are dissatisfied. Majority
of the retailers said that they have all brands of Pepsi in the outlets. At last marketing
channels are sets of interdependent organization involved in the process of making a
product or service available for use or consumption.
Conclusion:
Pepsi & its Product Co. are the Profitable MNC’s in not only India but also in the whole
world. Its main competitor is Coca-Cola. Pepsi has built a reputation around the world as a
major player in the soft drink market as well as the leader in the snack food industry.
Currently they are facing stiff competition from Coca-Cola, but with their various marketing
ventures as well as the selling of their restaurant franchises, Pepsi is poised to give Coke a
definite battle in the future as to which cola consumers want. Promotional activities play a
greater and important role in the entire marketing effort being carried out by Lumbini
Beverages (pvt.) Ltd. “to generate more sales as well as to create and maintain an image of
its product”.
7. INTRODUCTION
“Marketing channels are sets of interdependent organization involved in the
process of making a product or service available for use or consumption.”
The main objective of the marketing process is to distribute the products to the
actual users. This function involves a number of sub-functions to be performed by a
producer or manufacturer. These two functions are most important first, the creation of
demand is made through the process of advertising and sales promotion activities. On the
other hand the distribution through the channels of distribution. The decision relating to
the channel of distribution is a very important decision from the firm point of view
because the selected channels affect considerable other marketing decision. Such
decisions are of long term nature and exercise their impact on the cost structure of the
firm also.
By channel distribution mean the intermediaries or the process through which the
goods products are transferred from the producer to the ultimate users.
Now a day any of the producers possibly do not sell their goods directly to the
final users. There are a lot of intermediaries between producers and consumer, bearing a
variety of name performing various kinds of function. Some intermediaries like
wholesalers and retailers buy and resale taking the bill. They are known as merchant
middle men and other are brokers, representative sales agent who seeks or search for
customers and negotiate on the behalf of the producer but do not take of goods. These are
called as middlemen.
The manufacturer and its distributive outlets share common objective to sell the
manufactured products at a profit. No doubt its objective differs with the marketing
circumstance. Even though many variation of specific objective fits into some categories.
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8. 8
These are as follows:-
To built distribution network loyalty
To stimulate distribution
To develop managerial efficiency in distribution organization
To identify the source of supply for the product line at the final buyers level
The channel of distribution is a structure which organized and presents a choice
among alternative channels of distribution of the different marketing situations faced by
retailers, whole sellers and producers within the structure. It may be considered as a
series of function which must be performed in order to make producers efficiency.
To bearing maximum profits of all institutions concerned a channel of distribution
should be treated as a unit of total system of action. The activities of the manufacturer
need to be coordinated with these middlemen used in the distribution of given product.
The important of middlemen in channel of distributional can be over emphasized.
It is that who-
1. Collects concentrates the output of various producers,
2. Subdivides these into lot desired by the customers gathers various items together
in the assortment wanted and
3. Disperses the assortment to consumer industrial buyers.
Objectives:
1. To study and analyze pre sale booking system.
2. To know retailer perception and response to pre sale booking system.
3. To evaluate performance of Pilot Sales Representative (PSR’s).
4. To find out the problems that the retailer’s are facing.
5. To know about the stock position of Pepsi product at different outlets.
9. 9
SCOPE OF THE STUDY
The training in the organization is very important for a student who is undergoing with such
course. This course is not the answer for all the problems, which arises in the practical fields.
There is no certain formula for any particular problems, but the aim of this study is to
develop the ability of decision-making. A right decision at right time itself helps an
organization to run smoothly.
This training in an organization gives an idea how decisions are taken tact fully when any
problem comes to an executive. So the way of problem solving, right decisions making and
knowledge of different type of marketing activities give much importance to the study.
Though only in two months it was not possible to understand it so deeply but an overall idea
could develop.
LIMITATIONS:
Every work has some limitations and in this limitation we have to do a wok as summer
project is a time bound process so in which I found various limitation which are as
follows:
Retailer’s mindset about the survey was also an obstacle in acquiring complete
information and positive interaction.
Time and Money is also one of the important limitations.
The sample has taken only 100 respondents. They may not represent the whole
population.
10. International
Pepsi Company is a large conglomerate with interests in manufacturing, marketing and
selling a wide variety of carbonated and non-carbonated beverages, as well as salty,
sweet and grain-based snacks, and other foods. PepsiCo is a world leader in convenient
snacks, foods and beverages, with revenues of more than $39 billion and over 185,000
employees.
PepsiCo International (PI) includes all PepsiCo businesses in the United Kingdom,
Europe, Asia, Middle East and Africa.
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Shareholder
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in
the United States. The company is also listed on the Chicago and Swiss stock exchanges.
PepsiCo has consistently paid cash dividends since the corporation was founded.
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.
PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York, approximately 45
minutes from New York City. The seven-building headquarters complex was designed by
Edward Durrell Stone, one of America's foremost architects. 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.
11. 11
Company leadership
PepsiCo's History Timeline
PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of
Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay,
through the merger of the two companies. Pepsi-Cola was created in the late 1890s by
Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961
merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay
Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the
Board of Directors of the new company; Donald M. Kendall is president and chief
executive officer. The new company reports sales of $510 million and has 19,000
employees.
PepsiCo brands are available in nearly 200 countries and generate sales at the retail level
of more than $98 billion. Some 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 Headquartered in Purchase,
New York, with Research and Development Headquarters in Valhalla, NY, The Pepsi
Cola Company began in 1898, but it only became known as PepsiCo when it merged with
Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these
fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands,
Inc. PepsiCo purchased Tropicana in 1998 and Quaker Oats in 2001.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
12. communities in which we operate. And in everything we do, we strive for honesty,
fairness and integrity.”
12
The company consists of
PepsiCo Americas Foods (PAF)
PAF includes Frito-Lay North America, Quaker Foods North America and all Latin
America food and snack businesses, including Sabritas and Gamesa businesses in
Mexico.
Frito-Lay and Pepsi Join
In February 1965, the Board of Directors for Frito-lay, Inc. and Pepsi-Cola announced a
plan for the merger of the two companies. On June 8, 1965, the merger of Frito-Lay and
Pepsi-Cola Company was approved by shareholders of both companies, and a new
company called PepsiCo, Inc. was formed. At the time of the merger, Frito-Lay owned 46
manufacturing plants nationwide, had more than 150 distribution centers across the
United States, and was listed on the New York Stock Exchange.
Frito-Lay North America and Frito-Lay International
PepsiCo's snack food operations had their start in 1932 when two separate events took
place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food
product – a corn chip – and started an entirely new industry. The product was Fritos
brand corn chips, and his firm became the Frito Company.
That same year in Nashville, Tennessee, Herman W. Lay started his own business
distributing potato chips. Mr. Lay later bought the company that supplied him with
product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay
Company merged in 1961 to become Frito-Lay, Inc.
Today, Frito-Lay brands account more than half of the U.S. snack chip industry.
PepsiCo began its international snack food operations in 1966. Today, with operations in
more than 40 countries, it is the leading multinational snack chip company, accounting
for more than one quarter of international retail snack chip sales. Products are available in
some 120 countries. Frito-Lay North America includes Canada and the United States.
Major Frito-Lay International markets include Australia, Brazil, Mexico, the Netherlands,
South Africa, the United Kingdom and Spain.
13. Often Frito-Lay products are known by local names. These names include Matutano in
Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil, Walkers in the United
Kingdom and others. The company markets Frito-Lay brands on a global level, and
introduces unique products for local tastes.
Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips. Other
major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas
tortilla chips, Rold Gold pretzels and SunChips multigrain snacks. Frito-Lay also sells a
variety of snack dips and cookies, nuts and crackers.
13
Quaker Foods North America
The Quaker Oats Company was formed in 1901 when several American pioneers in oat
milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William
Heston had established the Quaker Mill Company and registered the now famous
trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength.
The figures of a man in Quaker clothes became the first registered trademark for
breakfast cereal and remain the hallmark for Quaker Oats today. In Cedar Rapids, Iowa,
John Stuart and his son, Robert, and their partner, George Douglas, operated the largest
cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had
founded German Mills American Oatmeal Company in 1856.
Combining The Quaker Mill Company with the Stuart and Schumacher businesses
brought together the top oats milling expertise in the country as The Quaker Oats
Company. The first major acquisition of the company was Aunt Jemina Mills Company
in 1926, which is today the leading manufacturer of pancake mixes and syrup.
In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of
Rice-A-Roni.
PepsiCo merged with The Quaker Oats Company in 2001. Its products still have the
eminence of wholesome, good-for-you food, as envisioned by the company over a
century ago.
14. PepsiCo Americas Beverages (PAB)
PAB includes PepsiCo Beverages North America and all Latin American beverage
businesses.
Pepsi-Cola North America and PepsiCo Beverages
International
Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola,
founded PepsiCo’s beverage business at the turn of the century. Today consumers spend
about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products –
including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands –
account for nearly one-third of total soft drink sales in the United States, a consumer
market totaling about $60 billion.
Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled
water, Fruit works and All Sport.
In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the
biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola also markets
Frappuccino ready-to-drink coffee through a partnership with Starbucks.
In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an
innovative line of beverages including fruit blends, energy drinks, dairy-based drinks,
exotic teas and other beverages with herbal ingredients.
Outside the United States, Pepsi-Cola soft drink operations include the business of
Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and
territories.
Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada.
Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United
States, major products include Mirinda and Pepsi Max. Pepsi-Cola North America includes the
United States and Canada. Key international markets include Argentina, Brazil, China, India,
Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages
14
15. International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and
other juices internationally.
Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers
and food service customers. This includes some of the world's best-loved and most-recognized
advertising. New advertising and exciting promotions keep Pepsi-Cola brands young.
The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company
also provides fountain beverage products.
Gatorade/Tropicana North America
Anthony Rossi as a Florida fruit packaging business founded Tropicana in 1947. The
company entered the concentrate orange juice business in 1949, registering Tropicana as
a trademark.
In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time,
consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange
juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the
company’s flagship product.
In 1957 the name of the company was changed to Tropicana Products, headquartered in
Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods
Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram
Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995.
PepsiCo acquired Tropicana, including the Dole juice business, in August 1998.
Today the Tropicana brand is available in 63 countries. Principal brands in North
America are Tropicana Pure Premium, Tropicana Season’s Best, Dole Juices and
Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and
Dole juices along with Frui'Vita, Loóza and Copella. Tropicana Pure Premium is the third
largest brand of all food products sold in grocery stores in the United States.
15
16. Gatorade sports drinks were acquired by the Quaker Oats Company in 1983 and became
a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink.
Created in 1965 by researchers at the University of Florida for the school's football team,
"The Gators," Gatorade is now the world's leading sports drink
16
Vision of PepsiCo
PepsiCo Mission
"To be the world's premier consumer Products Company focused on convenience 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."
PepsiCo in India
PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of
more than $39 billion and more than 185,000 employees across the world. Its world
renowned brands are available in nearly 200 countries and territories. PepsiCo gained
entry to India in 1989 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;
PepsiCo bought out its partners and ended the joint venture in 1994. Firstly Pepsi was
banned from import in India, in 1970, for having refused to release the list of its
ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly
afterwards.
17. PepsiCo has grown to become the country’s largest selling food and beverage companies.
One of the largest multinational investors in the country, PepsiCo has established a
business which aims to serve the long term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S. $700 million since the
company was established in the country in 1989. In India, PepsiCo provides direct
employment to 4,000 people and indirect employment to 60,000 people including
suppliers and distributors.
The group has built an expansive beverage, snack food and exports business and to
support the operations are the group’s 43 bottling plants in India, of which 15 are
company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay
snack division has 3 state of the art plants. PepsiCo’s business is based on its
sustainability vision of making tomorrow better than today. Our commitment to living by
this vision every day is visible in our contribution to our country, consumers, farmers and
our people.
PepsiCo India’s expansive portfolio
17
Refreshment beverages
18. Soft drinks 100% natural fruit juices and juice based drinks
Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi
and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water,
isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks –
Tropicana, Tropicana Twister and Slice. Our local brands – Lehar Evervess Soda, Dukes
Lemonade and Mangola complete our diverse spectrum of brand
PepsiCo’s snack food company
18
19. PepsiCo’s snack food company, Frito-Lay, is the leader in the branded potato chip market
and was amongst the first companies to eliminate the use of trans fats and MSG in its
products. It manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chipps
and traditional namkeen snacks under the Kurkure and Lehar brands. The company’s
high fiber breakfast cereal, Quaker Oats, along with Lehar Lites, low fat and roasted
snack options enhance the choices available to the growing health and wellness needs of
our consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are
cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products
contain voluntary nutritional labeling on their packets.
19
PepsiCo SKU’s
20. 20
PIZZA HUT
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 Defense Colony, Aleksandra, 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(Ghaziabad) and Kolkata (2).
All these restaurants are making good profits & are dominating the market. The name of
business entity is Devyani International Private Limited.
Beverages
Jaipuria Group has the distinct honor of being the biggest bottler in India of the global
giant Pepsi Co. It controls near about 60% of Pepsi’s bottling business in India. The
Group has been managing a network of scores of distributors and simultaneously proving
employment to thousands of people. With state–of–the-art technology and plants
equipped with the latest machinery, the Jaipuria Group has occupied a remarkable
position in the soft drink industry of India. The company has created a stronghold across
the country.
21. 21
Company Milestones
2011
Tingyi Holding and PepsiCo enter into agreement to form strategic alliance in
China
PepsiCo Foundation expands commitment to Water.org with $8 Million
contribution to scale 'Water Credit' across India
2010
Frito-Lay commits to making 50% of its product portfolio made with all natural
ingredients
PepsiCo increases investment in O.N.E., One Natural Experience
2009
PepsiCo is named to the 'Best Companies for Multi Cultural Women' list by
Working Mother magazine
2008
Pepsi to take over New Year's Eve 2009 in New York City's Time Square with
new packaging design and messages
2007
PepsiCo signs Maria Sharapova for International endorsement of Gatorade and
Tropicana
Tropicana launches Tropicana Healthy Heart with Omega-3s, the first national
orange juice to include omega-3s
2006
Quaker Snacks Unveils Breakfast Cookies
Doritos unveils new packaging, including an updated logo
PepsiCo Launches Pepsi Limon in Peru
2005
Frito-Lay introduces Doritos Black Pepper Jack
Diet Sierra Mist becomes Sierra Mist Free.
22. 2004
PepsiCo Launches 'Health Roads' Wellness Benefit for Associates and Their Families
PepsiCo's new "Smart Spot" program is featured as an example of the food industry's
focus on health and wellness in today's edition of USA Today.
2003
Pepsi-Cola launches Sierra Mist nationally.
PepsiCo launches "Get Active/Stay Active" program.
2002
Frito-Lay introduces Go Snacks, canisters that truly go anywhere.
Gatorade introduces new Gatorade ICE in three flavors- Orange, Lime and Strawberry.
2001
Pepsi-Cola Company launches Dole single-serve juices in vending machines, coolers and
other retail outlets throughout the United States.
Pepsi-Cola's flagship brand will have new tagline, "The Joy of Pepsi."
2000
Pepsi-Cola revives its "Pepsi Challenge" advertising campaign. Challenge includes Pepsi
One and Diet Coke as well as regular cola.
1999
Steve Refinement named president of PepsiCo.
1998
Pepsi-Cola introduces two-litre plastic bottle with built-in "grip handle" that makes it
easier to grip and pour.
1997
Pepsi-Cola introduces new advertising campaign with the theme "Generation Next."
1996
Pepsi-Cola launches Pepsi World at www.pepsiworld.com
1995
Pepsi-Cola introduces "Nothing else is a Pepsi" theme line.
1994
Pepsi-Cola is first major soft drink maker to begin producing and distributing its product
in Vietnam.
22
23. 1993
Frito-Lay launches new Doritos brand Tortilla Thins. Within five months of launch,
Tortilla Thins breaks into the ranks of the 10 largest-selling snack chips in the U.S.
1992
PepsiCo purchases an equity interest in California Pizza Kitchen. It is sold in 1997.
1991
PepsiCo acquires an equity interest in Wedel SA, the leading manufacturer of chocolate
and confectionery in Poland Snacks now include operations in 23 countries.
1990
PepsiCo stock splits three-for-one.
PepsiCo acquires a controlling interest in Gamesa, Mexico's largest cookie company.
1989
PepsiCo acquires Walkers Crisps and Smith Crisps, two of the United Kingdom's leading
snack food companies.
1988
Pepsi-Cola International enters a landmark joint venture agreement in India.
1987
"Mustang," a Diet Pepsi commercial, becomes the first ad ever to appear in a home video
cassette. The cassette, "Top Gun," becomes the largest-selling video ever.
1986
The corporation is reorganized and decentralized. Beverage operations are combined
under PepsiCo Worldwide Beverages; snack food operations are combined under
PepsiCo Worldwide Foods.
1985
Pepsi-Cola products are available in nearly 150 countries and territories around the
world. Snack food operations are in 10 international markets.
23
24. A THEORETICAL FRAME WORK OF CHANNEL OF
DISTRIBUTION
“Marketing channels are sets of interdependent organization involved in the
process of making a product or service available for use or consumption.”
The main objective of the marketing process is to distribute the products to the
actual users. This function involves a number of sub-functions to be performed by a
producer or manufacturer. These two functions are most important first, the creation of
demand is made through the process of advertising and sales promotion activities. On the
other hand the distribution through the channels of distribution. The decision relating to
the channel of distribution is a very important decision from the firm point of view
because the selected channels affect considerable other marketing decision. Such
decisions are of long term nature and exercise their impact on the cost structure of the
firm also.
By channel distribution mean the intermediaries or the process through which the
goods products are transferred from the producer to the ultimate users.
Now a day any of the producers possibly do not sell their goods directly to the
final users. There are a lot of intermediaries between producers and consumer, bearing a
variety of name performing various kinds of function. Some intermediaries like
wholesalers and retailers buy and resale taking the bill. They are known as merchant
middle men and other are brokers, representative sales agent who seeks or search for
customers and negotiate on the behalf of the producer but do not take of goods. These are
called as middlemen.
The manufacturer and its distributive outlets share common objective to sell the
manufactured products at a profit. No doubt its objective differs with the marketing
circumstance. Even though many variation of specific objective fits into some categories.
24
25. 25
These are as follows:-
To built distribution network loyalty
To stimulate distribution
To develop managerial efficiency in distribution organization
To identify the source of supply for the product line at the final buyers level
The channel of distribution is a structure which organized and presents a choice
among alternative channels of distribution of the different marketing situations faced by
retailers, whole sellers and producers within the structure. It may be considered as a
series of function which must be performed in order to make producers efficiency.
To bearing maximum profits of all institutions concerned a channel of distribution
should be treated as a unit of total system of action. The activities of the manufacturer
need to be coordinated with these middlemen used in the distribution of given product.
The important of middlemen in channel of distributional can be over emphasized.
It is that who-
1. Collects concentrates the output of various producers,
2. Subdivides these into lot desired by the customers gathers various items together
in the assortment wanted and
3. Disperses the assortment to consumer industrial buyers.
The role of middlemen that of specialist in concentration equalization and dispersion
besides he side in the creation of the time from and procession utilities.
Types of Marketing Channels
1. Direct marketing channel : A marketing channel that has no intermediaries level
2. Indirect marketing channel : Channels containing one or more intermediaries
26. 26
Customer Marketing Channels
Channel 1. Manufacturer………………………………………………..…Consumer
Channel 2. Manufacturer……………Retailer……………………………Consumer
Channel 3. Manufacturer……...Wholesaler………….Retailer…………Consumer
Channel 4. Manufacture…….Wholesaler……Jobber……Retailer…….Consumer
CHANNEL DYNAMICS
Distribution channel do not stand still. New wholesaling and retailing institution
emerge and new channel system evolves. There are four types of marketing channels.
1. Conventional Distribution Channel
A Channel consist one or more independent wholesaler and retailers. Each is a
separate business seeking to maximize its own profits even if this goal reduces
profit for the system as a whole. No. of channel members has complete or
substantial control over the other members.
2. Vertical Marketing Channel
This is most recent marketing channel. A distribution channel system as
producers, wholesaler and retailers act as unified systems. One channel member,
the channel captain owns the others or franchises them or has so much power that
they all co-operate. The channel captain can be the producer, the wholesaler or the
retailer.
3. Horizontal Marketing Channel
A distribution channel system in which two or more unrelated companies put
together resources or programmes to exploit an emerging marketing opportunity.
27. 27
4. Multi Channel Marketing
In the past, many companies sold to single market through a single channel. Multi
channel marketing occurs when a single firm uses two or more marketing
channels to reach one or more customer segments.
RETAILING
Includes all the activities involved in selling goods or services directly to final
consumers for personal non-business use. A retailer or retail store is any business
enterprise whose sales volume comes primarily from retailing.
Retailers are the last but not the least in the marketing channel through whom the
eventual transfer of ownership of goods take place. The use of retailer boils down to their
superior efficiency in making goods widely available and accessible to target markets. In
most of the cases the retailers performs the important functions mentioned as under.
1. Information
2. Promotion
3. Negotiation
4. Ordering
5. Financing
6. Risk Taking
7. Physical Possession
8. Payment
9. Title
The major types of retailer are as following:-
1. Specialty Store: - They sell narrow product line with deep assortment.
2. Departmental stores: - They sell several product lines with each line operated as
separate department managed by specialist buyers or merchandisers.
28. 3. Super market: - They are relatively large, low cost, low margin, high volume self
service operation designed to serve total needs for food, laundry and household
maintenance product.
4. Convenience Store: - These are relatively small store located near residential areas,
open long hours, seven days a week and carrying united lines of high turnover
convenience products at slightly higher prices.
5. Discount Store: - These sell standard merchandise at lower prices with lower
28
margins and higher volumes.
6. Off price Retailers: - These sell the merchandise which are bought at less than
regular wholesale prices and sold as less than retail. These may be of three types
mentioned as under:
a) Factory orders
b) Independent off price retailers
c) Warehouse clubs ( Wholesale clubs )
29. Channel of Distribution of Lumbini Beverages
Pvt. Ltd. Hajipur, in Patna
To make its products available at the right places at the right time in the market,
the sales department of the company pays major attention on controlling the channels of
distribution.
Single type of markets channel is maintained by the company right from its
pioneering stage. The nature of the channel is as follows:-
Company
Distributors
Dealers
Different Outlet Owners
Consumers
At first the soft drinks supplied to the distributors directly. Retailers or owners of
any outlet cannot take the delivery from company. They have to take the products from
their respective or nearest distributor.
There are about 50 distributors and innumerable number of retail outlets operating
with the company in its entire market areas which contains total Bihar. In all the
important places of entire territory this company has its distributors.
These distributors selected on the basis of assurance given by them regarding the
minimum sales which they have to maintain annually. The selection is also done on the
basis of the financial position and reputation of distributor in the market. As for example
in appointing a distributor first engaged in soft drink business second priority is given to
those people who are in cigarette selling business. Depending upon the market, each
distributor in the initial stage has to deposit some security money.
29
30. The retailers are selected by the distributor fixed criteria for the selection or
appointment or retailers from the side of the distributor. Any one like Panwala,
Cigarettewala or any other shopkeeper can have the stall for the sale of soft drinks and
they are called retailers or outlet owners. They have to give assurance to the concerning
distributor for better sale and at the time of taking delivery they have to deposit the
security i.e. the charges if the empty bottles with specified retailers purchasing price. The
charges if the empty bottles with specified retailers purchasing price. The distributor at
first has to seek the permission of sales department for the number of cases of soft drinks
required by them. After getting the proper authority from sales department paying the
requisite amount either cash or demand draft.
30
31. WAREHOUSING
Every company has to store its finished goods until they sold. A strong facility is
necessary because production and consumption cycles rarely match.
Warehousing is not a simply storing activity but a package of services that
31
enables the smooth running of the industry.
The stores must be in constant touch with the use department in order to provide
uninterrupted services to the manufacture and its decision since working capital is locked
up in the warehousing stores in equal to money.
The stores functions can be organized in the following manner:-
a) To receive raw material components equipments etc.
b) To meet the demand of use department by issuing the order
c) Accounting the transaction properly.
d) Minimizing obsolescence surplus and scrap by right identification and
using correct preservation method.
The company supply finished products frequently to different distributors as per
the demand.
Every distributor keeps a minimum stock of different products of the product line
so that the uninterrupted supply could not affect.
In the industrial sector service of optimization where boils down to any exercise
of optimization where limited available resources are to be distributed equitably.
The problem arises from the material that are in stock the form of capital cost,
storage loss, pilferage obsolescence, insurance, handling, documentation etc. Services
level that can be maintained and hence the concept stores in money should be understood
by everybody in the organization.
32. INVENTORY DECISION
32
(1) Branding and Packaging
Out of the total market activities some are directly performed and controlled
by “Lumbini Beverages Pvt. Ltd.” itself some are followed according to the
standing instruction of “Pepsi Foods Pvt. Ltd.
So far as the process of branding and packaging is concerned the “Lumbini
Beverages Pvt. Ltd.” Along with the authorized bottle in India adopt the same
pattern.
(2) Wholesaling
Wholesaling includes all the activities involved in selling goods or services to
those who buy for resale or business use. Manufactures use wholesalers because
wholesalers can perform function better and more cost effectively than the
manufacture can. These functions are not limited to selling and promoting, buying
and assortment building bulk barking, warehousing, transporting financial risk
bearing dissemination of marketing information and provision of management
services and consulting.
Like retailers wholesaler must decide on target market, product assortment and
services promotion and place. The most successful wholesalers are those who adopt
their services to meet and target customer’s needs, recognizing that existing to add
value to the channel.
33. 33
(3) Retailing
Retailing includes all the activities involved in selling goods or services directly
to find consumer for their personal non-business use. A retailer or retail store is any
enterprise which sales volume comes primarily from retailing. All marketer retailers
must prepare marketing plans that include decision on target market. So the
marketing channels can be viewed as a set of interdependent organization with high
potential for conflict. Then why would any business chosen to become part of channel
system.
(4) TRANSPORTATION
Transportation is life blood of business management and commerce. The purchase
office’s job in incomplete until and unless he ensures that the material is shipped from the
vendor’s premises located in different areas to his organization. Purchasing the
transportation is a key element in his job particularly in the context of the transportation
cost. In deciding to transporting models shippers can choose from private contract and
common carriers.
Transport decisions must consider the complex tradeoff between various transportation
mode and their implications for other distribution elements such as warehousing and
inventory.
34. OVERALL ORGANIZATIONL STRUCTURE OF LUMBINI
BEVERAGE PVT.LTD
HAJIPUR
Plant manager Finance controller Personnel manager Sales Manager
Quality control Accounts officer Security Depot In charge
Store Keeper Office In charge Sr .Sales Executive
34
Production department
Time keeper Sale executive
Supervisor Sales
The marketing managers are in charge of all marketing activities that are a sales
promotion publicity, and advertisement, marketing study and shipping. But the main function
of the marketing is to exercises the control over the channel of distribution.
The managers marketing assisted by sales executives, city sales executives and ruler ales
executive in charge of shipping department. This can be presented by the organizational chart
department as follows.
35. DIRECTOR
MANAGING DIRECTOR
SALES MANAGER
STATISTICIAN CITY SALES SALES EXECUTIVE SALES SUPERVISOR
DRIVER HELPER FRANCHISEE CITY SHOWROOM
35
INCHARAGE
SALESMAN LOADERS
36. 36
Research Methodology:
Exploratory:
To find the stock and sale at different outlets exploratory research method are adopted. A survey
form was prepared and the retailers were asked to answer them during the course of their
interview.
Schedule Method:
Retailer’s responses were conducted with the help of a prepared schedule. Samples are taken at
different locations of Patna area.
Field Observation:
During training period we did extensive survey of the retailer’s outlets and consumer to observe
the marketing operation performed by the organization.
TOOLS AND METHOD FOR COLLECTION OF DATA
(A) PRIMARY DATA
Primary data in obtained by a study, specifically designed to fulfill the data needs of the
problem at hand. Such data are original material for specific purpose.
The primary data for this project has been derived on following lines:
Research approach: Survey method
Research instrument: Personal interview & Questionnaire
Type of questions: Close ended
Sampling Techniques: Convenience Sampling
Sampling unit: Retailers
Sample size: 100
Contact: Personal
Area covered: Patna
37. 37
(B) SECONDARY DATA
They are not originally drawn by the researcher as fresh data. These are collected by some
other person for this purpose and published. These types of data can be collected through
various sources. For this study the secondary data were collected from magazines, journals,
references and websites and manuals of the PEPSICO.
Publications of the central, state and local governments
Technical and trade journals
Books, magazines and newspapers
Public records and statistics
Company records
THE SURVEY
A soft drink is a non-alcoholic beverage. It is artificially flavored and contains no fruit or pulp.
India with population of more than one billion is potentially one of the largest consumer markets
in the world after China. The consumer market can be defined as the market for products and
services that are purchased by individuals as households goods for their personal consumption.
Soft drink is a typical consumer product purchased by individuals to quench thirst and secondly
for refreshment.
In today’s fast moving industry and highly competitive market, only those products are likely to
be purchased which are capable of hitting the impulse of the consumers. The products appeal
should be penetrated and get embedded into the perceptual space of the consumer’s mind. The
concerned product should induce to the consumers.
Pepsi believes that “Jo Dikhta Hai Woh Bikta Hai” i.e. any product which is visible is bound to
be sold. That is method to increase the visibility of the products: -Visicooler placement, Glow
signboard, Paintings Crate Stacking, Umbrella, Banners, Danglers, Sun Packs, Display Scheme,
Special Schemes, and rack. Pepsi space club is organized every year for promotion of Pepsi soft
drinks. Pepsi space club programmed is based on a simple and successful formula:
38. “Jo Dikhata Hai, Who Bikhata Hai”.
A great display will result in great sales and that is a100% guaranteed way to add to profits.
The programmed design is simple:
1. Fulfill programmed criteria.
38
2. Achieve volume target and display.
3. Win fantastic prizes.
39. 1) What method do you usually use to place your orders?
Method for placing orders
ready sale booking pre sale booking phone booking
39
Ready sale booking
7
Pre sale booking
75
Phone booking
18
80
70
60
50
40
30
20
10
0
Interpretation:
Method for placing orders
As this graph shows that 75 retailers said pre sale booking system, 18 said phone booking and
7 said ready sale booking.
40. Frequency of order
15%
29% 56%
40
2. How frequently you order
Weekly 56%
Fortnightly
29%
Alternate days 15%
Interpretation:
weekly
fortnightly
alternate days
Above graph shows that 56% retailers place an order weekly, 29% fortnightly & 15%
retailers go for alternate days.
41. 3) After implementation of Pre sale order booking system how many
times in a week it happened that you ran out of stock of particular
product of Pepsi?
Shortage of particular product of pepsi
41
Interpretation:
51%
31%
18%
Above graph shows that after implementation of pre sale
51% said that they never ran out of stock,
31% said that it happened only once or twice
18% said that 2-4 times they ran out of stock.
never
1-2 times
2-4 times
Never 51%
1-2 times 31%
2-4 times 18%
42. 4. Do you think pre sale booking system is beneficial?
pre sale booking is beneficial
yes no
42
Yes 85
No 15
90
80
70
60
50
40
30
20
10
0
Interpretation:
pre sale booking is beneficial
85 retailers said that pre sale booking system is beneficial and only 15 retailers said no.
43. Various reason of pre sale booking system is.
Money arrangement 23
Timely availability of stocks 24
Good communication among the
retailers & PSR’S
Reason of pre sale booking sytem
43
26
Knowing of schemes 12
30
25
20
15
10
5
0
Interpretation:
Reason of pre sale booking
sytem
From the above data 23 retailers said they get the time for money arrangement, 24 said
timely availability of stocks, 26 said good communications between the retailers and PSR,
and 12 said knowing of schemes.
44. 5. Availability of variety of product (SKU) of Pepsi at the outlets?
Availability of variety of products
average
44
Excellent 15
Good 22
Average 30
Below average 18
Poor 15
30
25
20
15
10
5
0
excellent good average below
Interpretation:
poor
Availability of variety of
products
Availability of variety of Pepsi products (SKU) at the outlets 30 retailers said average, 22
retailers said it is good, 16 said excellent, 18 said below average and 14 retailers said it is
poor.
45. 6. Do you have all brands of PepsiCo in your outlets?
Brands of pepsi
45
Yes 66%
No 34%
34%
Interpretation:
66%
yes
no
66% of the retailers said that they have all brands of Pepsi and 34% said no because of
inability of distributor’s to fill the orders.
46. 7. Which brands of soft drinks are available in the outlet?
Soft drinks available in the outlet
0 10 20 30 40 50
46
Pepsi cola 45
Mirinda 12
Limca 18
7’Up 10
Slice 7
Mountain dew 8
mountain dew
slice
7' up
limca
mirinda
pepsi cola
Interpretation:
Soft drinks available in the
outlet
From the above data 45 retailers said pepsi cola, 18 said Limca, 10 said 7Up, 7 said Slice and
8 said Mountain dew of soft drinks available in the outlets.
47. 8. Distributor’s Efficiency to fulfilling the orders.
Distributors efficiency
excellent good average below avg. poor
47
Excellent 16
Good 24
Average 28
Below average 22
Poor 10
30
25
20
15
10
5
0
Interpretation:
Distributors efficiency
From the above data 28 retailers said it is average, 22 said it is below avg., 24 said good and
only 16 said it is excellent. Only 10 said that distributor efficiency to fulfill the orders is poor.
48. 9. Are you satisfied with the distributor’s performance?
Strongly satisfied 8
Satisfied 20
Neutral 35
Dissatisfied 22
Strongly dissatisfied 15
Satisfaction towards distributor's
performance
48
35
30
25
20
15
10
5
0
Interpretation:
Satisfaction towards
distributor's performance
From the above data 20 retailers are satisfied with the distributor performance, 8 are strongly
satisfied, and 35 are neutral. Besides that 22 are dissatisfied and 15 are strongly dissatisfied.
49. 10. Have you ever missed your order?
Missing of order
49
Yes 77%
No 23%
Interpretation:
77%
23%
77% retailers said that they have ever missed order. 33% said no.
yes
no
50. If yes then what may be main reason?
Wrong order 34
Sudden change in weather 21
Change in schemes 22
missing of orders due to various reason
change in
schemes
50
35
30
25
20
15
10
5
0
wrong order sudden change
Interpretation:
in weather
missing of orders due to various
reason
Most of the retailers said that they ever missed the order due to the wrong placing of order,
besides that other said due to sudden change in weather & change in schemes.
51. 11. At which time Pilot Sales Representative (PSR’s) usually comes to take
order
Between 10-12 am 23
12-2 pm 40
After 2 pm 37
Time to place order
0 10 20 30 40 50
51
after 2 pm
12-2 pm
between 10-12 am
Interpretation:
Time to place order
40 retailers said PSR’s usually comes around 12-2 pm, 37 said after 2 pm to take order.
Besides that 23 retailers said that they come around between 10- 12 am.
52. 12. Are you satisfied with Pilot Sales Representative (PSR’s) order
taking timing? At what time you want him to come and take order
Satisfaction towards PSR's order taking time
52
Yes 70%
No 30%
Interpretation:
70%
30%
yes
no
70% of the retailers are satisfied with the order taking time of PSR’s and they want him to
come and take order after 2 pm. Only 30% said no.
53. 13. Pilot Sales Representative (PSR’s) way of telling about schemes and
other information
Excellent Good Average Below
Telling about schemes and other information
excellent good average below
average
53
average
Poor
20 28 22 18 12
30
25
20
15
10
5
0
Interpretation:
poor
Telling about schemes and
other information
28 retailers said that PSR’s ways of telling schemes and other information are good, 22 said it
is average, 20 said excellent. Besides that 18 said below average and 12 said it poor.
54. 14. Does Pilot Sales Representative (PSR’s) give you complete
information of new products, daily schemes and the promotional offers?
Information about new product
occasionally sometimes never
54
Occasionally 23
Sometimes 42
Never 35
45
40
35
30
25
20
15
10
5
0
Interpretation:
Information about new product
23 retailers said that generally they give information regarding new products, schemes etc.
occasionally. 42 and 35 retailers said sometimes and never respectively.
55. 55
FINDINGS:
1. According to the survey most retailers prefer pre sale booking system.
2. Most of the retailers place an order weekly some go for fortnightly & very few go for
alternate days.
3. In various outlets maximum retailers found that they never ran out of stock.
4. Majority of the retailers said that pre sale booking system is beneficial because of various
reasons like money arrangement, proper communication among the retailers & PSR’s.
5. Availability of variety of Pepsi product at the outlets is average at the store.
6. Majority of the retailers said that they have all brands of Pepsi in the outlets.
7. Pepsi cola is the maximum in the outlets besides that Limca, Mirinda, 7 Up is also good
at the outlets. But slice and mountain dew have less demand by the retailers.
8. Distributor’s ability to fill orders is average at the outlets. Other said it is good and below
average. Some retailers said that excellent and very few said it is poor.
9. Most of the retailer’s satisfaction towards distributor’s performance is neutral.
10. Most of retailers have ever missed the order because of wrong order and sudden change
in the weather.
11. Majority of the retailers said PSR’s usually comes around 12-2 pm and after 2 pm to take
order.
12. Most of the retailers are satisfied with the order taking time of PSR’s and they want
him to come and take order after 2 pm.
13. Most of the retailers said that PSR’s ways of telling schemes and other information are
good.
14. Majority of the retailers said that generally PSR’s give information regarding new
products, scheme sometimes.
56. SUGGESTIONS
1. Company should give more preference to pre sale booking system because it gives good
communication among the retailers and PSR’s.
2. Company must give margins and schemes to distributors that will create good relation
between the retailers and distributors and timely availability of the stocks.
3. Company should give more promotional schemes, offers on brands like slice, Mirinda
56
and 7 up to increase sales.
4. Retailers are the good intermediaries so the company should give more packages to the
retailers, by which they can looks towards the high sales of this particular brand.
5. The company should start survey time to time to know the grievances of retailer as well
as distributors.
6. Sometimes absence of stocks annoys retailer and consumers, so company should keep a
watch to the availability of brand.
7. Supply chain should be enhanced effectively and efficiently.
8. Company must give training and development to PSR’s to make good relation among the
retailers.
9. More improvement is required in the distribution network in the outskirt and in the
remote areas, because in the peak seasons like summer the small retailers are taking
goods twice or thrice and in between if the distributors could not supply them, the
competitors will get the opportunities to supply the goods.
57. 57
CONCLUSION:
Pepsi & its Product Co. are the Profitable MNC’s in not only India but also in the whole world.
Its main competitor is Coca-Cola. Pepsi has built a reputation around the world as a major player
in the soft drink market as well as the leader in the snack food industry. Currently they are facing
stiff competition from Coca-Cola, but with their various marketing ventures as well as the selling
of their restaurant franchises, Pepsi is poised to give Coke a definite battle in the future as to
which cola consumers want. Promotional activities play a greater and important role in the entire
marketing effort being carried out by Lumbini Beverages (pvt.) Ltd. to generate more sales as
well as to create and maintain an image of its product.
Pepsi believes that “Jho Dikhta Hai Woh Bikta Hai” i.e. any product which is visible is bound
to be sold this method of sales promotion being used by the Pepsi, through its distributors is to
conduct dealer’s sales contest during the peak seasons i.e. during April to July. In it the dealers
are given prize in the form of cases of soft drinks and gifts. In the contest at first his or her
respective distributors according to their categorize each dealer. And then each distributor fixes a
target of minimum sale for each category to which every dealer according to his or her category
has to achieve during the contest period.
The retailers achieving highest sales over and above the target set is giving the awards as under,
the order of prizes announced are first prize, 2nd prize, 3rd prize in terms of number of free cases
of soft drinks and gifts.
58. BIBLIOGRAPHY
58
BOOKS:
1. Saxena, Ranjan, ‘Marketing Management’, TATA McGRAW HILL, New Delhi, Third
Edition.
2. Kotler, Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha,‘Marketing
Management’, PEARSON Prentice Hall, New Delhi, Twelfth Edition.
3. Ramaswamy, V. S., S Namakumari, ‘Marketing Management’,
MACMILLAN INDIA LTD., Third Edition.
4. C.R.Kothari, Business Research methodology, New age publication.
WEBSITES
www.pepsi .com
www.corporate .org
www.wikipedia encyclopedia.com
www.india today.com
59. Dear Retailer
On behalf of Lumbini Beverages Pvt. Ltd, I want to thank you for giving us the
opportunity to serve you. Please help us serve you better by taking a couple of
minutes to tell us about the service that you have received so far. We appreciate
your business and want to make sure we meet your expectations. This will be
used only for academic purpose only.
1. What method do you usually use to place your orders?
Ready sale booking Pre sale booking Phone
2. How frequently do you place an order?
Weekly fortnightly Alternate days
3. After implementation of Pre sale order booking system how many times
in a week it happened that you ran out of stock of particular product of
Pepsi?
Never 1-2 times 2-4 times
4. Do you think pre sale booking system is beneficial?
Yes No
If yes why do you think is beneficial---------
1. Money arrangement
2. Timely availability of stocks
3. Effective communication between the retailers & PSR’s
4. Knowing of schemes
5. Availability of variety of product (SKU) of Pepsi at the outlets?
Excellent Good Average Below
59
average
Poor
60. 6. Do you have all brands of PepsiCo in your outlets?
Yes No
7. Which brands of soft drinks are available in the outlet?
(a) Pepsi Cola (b) Mirinda
(c) Limca (d) 7’Up
(e) Slice (f) Mountain Dew
8. Distributor’s Ability to fill orders completely.
Excellent Good Average Below
60
average
Poor
9. Are you satisfied with the distributor’s performance?
Strongly
satisfied
Satisfied Neutral Dissatisfied Strongly
dissatisfied
10. Have you ever missed your order?
Yes No
If yes then what may be main reason?
Wrong order sudden change in weather change in schemes
11. At which time PSR’s usually comes to take order
Between 10-12am 12-2pm after 2pm
12. Are you satisfied with PSR’s order taking timing? At what time you want
him to come and take order
Yes No Time ___________
13. PSR’s way of telling about schemes and other information
Excellent Good Average Below
average
Poor
61. 14. Do PSR give you complete information of new products, daily schemes and
the promotional offers?
Weekly Sometimes occasionally other
15. What is your opinion about Pepsi products?
………………………………………………………………………………
………………………………………………………………………………
…………
Thank You. Signature.
61