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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
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:
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.
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
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.
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”.
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 
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 
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.
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. 
10 
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 
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
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.
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.
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
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
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.
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
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
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 
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 
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.
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
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
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 
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 
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 
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.
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 )
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
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
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.
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 
(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.
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.
DIRECTOR 
MANAGING DIRECTOR 
SALES MANAGER 
STATISTICIAN CITY SALES SALES EXECUTIVE SALES SUPERVISOR 
DRIVER HELPER FRANCHISEE CITY SHOWROOM 
35 
INCHARAGE 
SALESMAN LOADERS
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 
(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:
“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.
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.
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.
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%
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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 
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.
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 
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.
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
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
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
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

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Abdul pepsi. SIP

  • 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. 7
  • 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. 10 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