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SUMMER TRAINING
PROJECT REPORT
ON
DISTRIBUTION STRATEGY OF PEPSI
VARUN BEVERAGES LTD
PEPSICO
(hajipur)

Submitted for the partial fulfillment of the requirement for the award
Of

IIMT MANAGEMENT COLLEGE GANGA NAGER
MEERUT.

(2011-2013)

UNDER THE GUIDENCE OF :-

SUBMITTED BY :-

Dr. Prashant ghosh
(Director )

sonu kumar.
MBA 3rd symester
+919808470496

1
CONTENT

PAGE NO.

Project Detail

1

Certificate

2

Preface

3

Acknowledgement

4

Observations

5

Executive Summary

6

Introduction

7 to 9

Company Profile

10 to 17

Overview PepsiCo

18 to 19

PepsiCo Overcame Competition

20 to 24

Business Segment

25 to 35

Key Element of Trade

36 to 43

Promotion

44 to 47

Distribution Strategy

48 to 54

Research Methodology

55 to 56

Data Analysis From Retailer and Distributor

57 to 91

Analysis of Finding and Observation

92

SWOT Analysis

93 to 94

Conclusion

95 to 96

Limitation

97 to 98

Recommendation

99 to 101

Bibliography
Annexure

102
103 to 108

2
TO WHOM IT MAY CONCERN
This is to certify that …………………………………. student of MBA
course (2011-2013) IIMT MANAGEMENT COLLEGE with dual
specialization in “MARKETING & HR” has satisfactorily completed
the summer research project on “DISTRIBUTION STRATEGY
OF PEPSI”. This study is done under the guidance of the undersigned
for partial fulfillment for the award of MBA. I wisher all the best for
bright future ahead.

Mentor:…………………………

PREFACE

3
Marketing plays import role in today’s business scenario in consumer
product Company, there is such a high competition in the market. Summer
project in MBA program is providing job experience. In The summer
program we gain academic knowledge as well as corporate culture.
The emphasis in the project is providing the study and an insight into Indian
FMCG Business Scenario. The Summer Project is designed to provide
participation of MBA program as on the job experience. This has given a
chance to try and apply the academic knowledge and gain insight into
corporate culture. This helps in developing decision-making abilities and
emphasizes on active participation by the student.
We undertook our Project in Varun Beverages, a leading Bottler and
Marketing partner of the Pepsi Foods. During the training, we had worked
on the project “Distribution strategy of PEPSI in HAJIPUR BIHAR.”
We gained valuable experience & knowledge during the survey. The Project
consists of our findings customer behave relate goods market search after
data analysis & then SWOT analysis & conclusions were drawn and finally
recommendations were put forward.

ACKNOWLEDGEMENT

4
I owe my gratitude to many people who helped and supported me during the
entire Summer Training.
My sincere thanks to Mr.Prashant Dev Yadav the Guide of the project, for
initiating and guiding the project with attention and care. He/ She have
always been available for me to put me on track from time to time to bring
the project at its present form.
My deep sense of gratitude is due to Mr. Ashvani Sharma, Mr. Amit Sharma
(Marketing Manager , Senior Customer Executive) Of Varun Beverages Ltd.
HAJIPUR BIHAR. for allowing me to carry out the Summer Internship and
this Project at the organization and to be constantly available to me for the
period, for guidance. He/ She also helped me to see the subject of study in
its proper perspective. Thanks and appreciation is also due to the officials,
employees and respondents of Varun Beverages Ltd. Surajpur, Greater
Noida (U.P), for their support.I also thank my Institution and my faculty
members without whom this project would have been a distant reality.
Signature
(SONU KUMAR)

Place: HAJIPUR BIHAR

Date:

5
Observations:•

To collect order from each and every outlet.

•

To check visi-cooler with 100% purity.

•

To see is the soft drink is in Brand Order.

•

To see every outlet, is the soft drink present in display rack.

•

To see every outlet visi- cooler will present in prime location or
not.

•

To visit every outlet in regular basis.

•

To go every outlet and listen the problems of retailer and
shopkeeper related to visi- cooler and soft drink which is to be
noted in complaint diary.

•

To see each that each and every outlet worked in better condition.

•

To see as a Market developer (M.D) every outlet full fills in terms
and conditions with visi-Cooler.

•

To see as a Market developer (M.D.) if any outlet will not selling
your product than you asked why you are not selling my product.
Then you give advice to outlet.

6
EXECUTIVE SUMMARY
The distribution network of PEPSI is well known for its efficiency but
company constantly strives for the betterment of their distribution network
system. Emphasis of our study was to focus on the customer of company
i.e., the retailers.
The Retail Mapping of Greater Noida is an integral step for the assessment,
development and betterment of this system. The distribution system not only
comprises the movement of the products but also incorporates the
merchandising of the product, which is very broad in its purview.
The project incorporates the analysis of the perform of PEPSI and probing
into opportunities of increasing the market share in Greater Noida. The
entire process had to be in an organized manner in order to deliver
meaningful results for the purpose of decision-making. The project was that
of market research with surveys and observations as its major phases with
the objective of gathering of all important information material for
strengthening the position of PEPSI in Greater Noida.
PEPSI boasts of having the maximum market share in the beverage segment
in Greater Noida and is in constant process for the betterment of its product
performance and customer as well retailer’s satisfaction.

7
INTRODUCTION
Modern age is full of competition. Today only way of success is your
continuous efforts towards the growing market needs and in satisfying them.
It is the marketer job to know what the market speaks i.e. the ever changing
needs of the customer through market research & adopt them fruitfully. It is
must for all the companies to make policies according to the customers and
the govt. Today to succeed for any organization has to target its customer
needs, to create a culture in the organization i.e. market conscious &
responsive to customer needs.
Soft drinks industry has become big business in India in recent years.
The soft drink business under went major change with the entry of PEPSI
and re-entry of COCA-COLA in India in the late 80s when Parley with
brands like Thums up, Limca & Gold spot was a clear leader. Coca-Cola
took up the product line of parley in 1993-94; today both brands are the
Indians favorite soft drinks.
8
PepsiCo Inc.

Type

Public

Traded as

NYSE: PEP
S&P 500 Component

Industry

Foods, Beverages

Founded

North Carolina, U.S. (1965)

Founder(s)

Donald Kendall, Herman Lay

Headquarters

Purchase, New York, U.S.

9
Area served

Worldwide

Key people

Indra Nooyi
(Chairman & CEO)[1]

Products

See list of PepsiCo products

Revenue

US$ 66.504 billion (2011)[2]

Operating income

US$ 9.633 billion (2011)[2]

Net income

US$ 6.462 billion (2011)[2]

Total assets

US$ 72.882 billion (2011)[2]

Total equity

US$ 20.899 billion (2011)[2]

Employees

297,000 (2011)[2]

Divisions

PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo
Europe; PepsiCo Asia, Middle East & Africa

Subsidiaries

List of subsidiaries

Website

PepsiCo.com

10
COMPANY PROFILE-PEPSI CO. (US)

COMPANY PROFILE-PEPSI CO. (US)
PepsiCo is a world leader in convenient foods and beverages, with revenues
of about $66.50 billion, over 2, 97,000 employees and total equity $20.899
billion. The company consists of the snack business of Frito-Lay North
America and the beverage and food businesses of PepsiCo Beverages and
Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North
America and Gatorade/Tropicana North America) and Quaker Foods North
America. PepsiCo International includes the snack businesses of Frito-Lay
International and beverage businesses of PepsiCo Beverages International.
PepsiCo brands are available in nearly 200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation
is relatively young. PepsiCo was founded in 1965 through the merger of
11
Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo
merged with The Quaker Oats Company, including Gatorade, in 2001.
Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964)
and Mountain Dew (Introduced by Tip Corporation in 1948).
Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932),
Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos
brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and
Rolled Gold brand pretzels (acquired 1961).
PepsiCo is the world leader in the food chain business. It consists of many
companies amongst which the prominent one is Pepsi cola, frito lay, Pepsi
food international, pizza hut, and KFC and taco bell. The group is presently
into three most profitable businesses namely, beverages, snack foods and
restaurants. It has scores of big brand available in nearly 150 countries
across the globe.
The beverages segment primarily market Pepsi diet, mountain dew and other
brands worldwide and 7UP outside the U.S. market. They are positioned in
close competition with Coca-Cola inc. of USA. A point to be noted is that
coca cola get 80% of its profit from international operation while same
figure of Pepsi co. stand at 6%, the segment is also in the bottling plants and
distribution facilities.
The restaurant segment primarily consists of the operations of the worldwide
pizza hut, Taco Bell and KFC.
Long time no.2 player in the cola wars, Pepsi co. is widening the play field,
over the last years; the company has invested more than $2billion in its
worldwide operations.
When Coca-Cola changed its formula in 1985, Pepsi stepped up its
competition with its long time archival claiming victory in the cola wars.
Coke and Pepsi expanded their rivalry to tea in 1991 when Pepsi formed a
venture with #1 Lipton in response to coke’s announced venture with nestle
(Nestea) it has won over 30% of the ready to drink tea market, a part of the
so called "new age” beverages segment.

12
The beverage industry has witness the phenomenal growth over the last few
years necessitating capacity increase and builds up of commensurate
infrastructure to meet the business growth, which is accordingly matched.
PepsiCo’s success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of our
people.

PEPSI – THE INDIAN EXPERINCES
• Pepsi is one of the most well known brands in the world today available in
over 200 countries. The company has an extremely positive outlook for
India. "Outside North America two of our largest and fastest growing
businesses are in India and China, which include more than a third of the
world’s population." (PepsiCo’s annual report, 1999)
• This reflects that India holds a central position in Pepsi’s corporate
strategy. India is a key market for PepsiCo, and at the same time the
company has added value to Indian agriculture and industry. PepsiCo
entered India in 1989 and is concentrating in three focus areas – Soft drink
concentrate, Snack foods and Vegetable and Food processing
• Faced with the existing policy framework at the time, the company
entered the Indian market through a joint venture with Voltas and Punjab
Agro Industries. With the introduction of the liberalization policies since
1991, Pepsi took complete control of its operations. The government has
approved more than US$ 400 million worth of investments of which over
US$ 330 million have already flown in
• One of PepsiCo’s key strategies was to develop a completely local
management team. Pepsi has 19 company owned factories while their Indian
bottling partners own 21
13
The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing
official about it’ immediately ring a bell- it’s got to be Pepsi.
The advertisement tag ‘yehi hai right choice baby’ was the first ‘Hinglish’
slogan ever used in the in the Indian market. This slogan proved to be the
best suited one for Pepsi and it was a mega hit and at that moment of time.
Pepsi in a short span of its operations in India has found a place in the hearts
and minds of the Indian consumers. The success has primarily been due to
the innovative and passionate Indian team, which has been built over the
years. Pepsi is a trendsetter managed and run by Indians, where important
decisions are taken locally.
Pepsi started its operations in India in 1989 and since then PepsiCo has set
up a fully integrated operation in India viz. Manufacturing, Research &
Development, Marketing, Distribution and Franchising- covering
fruit/vegetable processing, Exports, and Snack Foods & Beverages. In the
mean time Pizza Hut and Frito Lay’s are the examples in this regard only
Pepsi has 40 bottling plants in India, out of which 16 are company owned
and 24 are owned by Indian franchisees. One of the major players in
franchisee is RKJ Group.
The RKJ group is India's leading supplier of retailer brand
Carbonated and Non-Carbonated soft drinks, with beverage manufacturing
facilities in India and Nepal. Its experience in the beverage industry dates
back to the sixties when it had the first franchise at Agra.
It has the license to supply beverages in the territories of Western U.P., part
of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of
Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in
total 18 bottling plants in India & Nepal and is responsible for producing
and marketing 44% of Pepsi requirement in India.
This group has brought name and fame to the Pepsi as in all this regions
Pepsi is at the commanding position and in the mean this group has
diversified itself into ice cream, suiting and shirting’s, restaurants, beer plant
in Mauritius & edible oil plant in Sri Lanka.

14
COMPANY PROFILE-JAIPURIA GROUP: IN INDIA

With a Legacy of decades in the industrial arena, the Jaipuria Group of
Companies now stands at the one thousand five hundred Crore marks. The
group boasts of its several world-class business arenas like those of Textiles,
Bottling, education, and information technology, Food Chain and Retailing,
apart from numerous other business segments
JAIPURIA GROUP is an Rs.1500 Crore, family controlled, reputed business
house with over a century of operations in diversified fields.
The group as on today can boast of expertise and leadership in the fields of
food and beverages, textiles and real estate development with varied
interests in a wide Range of products and services.
The Jaipuria Group under the leadership of the three brothers SK Jaipuria,
RK Jaipuria and CK Jaipuria has today become one of the leading business
houses of
the country.
The following are the major areas of operations of the Jaipuria Group:

15
•
•
•
•
•

Food and Beverages
Textiles
Information Technology
Real Estate
Education

It can be said with absolute certainty that the RKJ Group has carved out a
special niche for itself. Our services touch different aspects of commercial
and civilian domains like those of Bottling, Food Chain and Education.
Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to
expertise and leadership in the fields of education, food and beverages.
The business of the company was started in 1991 with a tie-up with Pepsi
Foods Limited to manufacture and market Pepsi brand of beverages in
geographically pre-defined territories in which brand and technical support
was provided by the Principals viz., Pepsi Foods Limited. The
manufacturing facilities were restricted at Agra Plant only.
Varun Beverages Ltd. is the flagship company of the group.
The group also became the first franchisee for Yum Restaurants
International [formerly PepsiCo Restaurants (India) Private Limited] in
India. It has exclusive franchise rights for Northern & Eastern India. It has
total 27 Pizza Hut Restaurants under its company.
We diversified into education by opening our first school in Gurgaon under
management of Delhi Public School Society. The schools of the group are
run under a Registered Trust namely Champa Devi Jaipuria Charitable
Trust.
Companies are medium sized, professionally managed, unlisted and closely
held between Indian Promoters and foreign collaborators.
The group added another feather to its cap when the prestigious PepsiCo
“International Bottler of the Year” award was presented to Mr. R. K.
Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s
centennial year celebrations at Hawaii, USA. The award was presented by
Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr.
George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of

16
the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of
Pepsi Cola Company.

Vision of the Company:
BEING THE BEST IN EVERYTHING WE TOUCH AND HANDLE.

Mission of the Company:
Continuously excel to achieve and maintain leadership position in the
chosen businesses; and delight all stakeholders by making economic value
additions in all corporate functions.

MAIN CREDENTIALS
1. VARUN BEVERAGES LIMITED received" GOLD STANDARD
AWARD" for the production and quality control for the year 1996-97.
2. Jaipuria group was adjudged “Best Bottler “out of more than 2000 bottles
all over the world for the year 1996-97.
3. In 2011, The Brand Trust Report in India included Pepsi in the list of the
most trusted brands of the country.

17
PepsiCo – The Parent Company

PepsiCo, Inc. is one of the world's largest food and beverage companies. The
company's principal businesses include:
•
•
•
•
•

Frito-Lay snacks
Pepsi-Cola beverages
Gatorade sports drinks
Tropicana juices
Quaker Foods

PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with
the Quaker Oats Company, creating the world’s fifth-largest food and
beverage company, with 15 brands – each generating more than $1 billion in
annual retail sales. PepsiCo’s success is the result of superior products, high
standards of performance, distinctive competitive strategies and the high
level of integrity of our people.
Pepsi-Cola North America, headquartered in Purchase, N.Y., is the
refreshment beverage unit of PepsiCo Beverages and Foods North America,
a division of PepsiCo, Inc. PepsiCo Beverages and Foods North America
also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses
in the United States and Canada.

18
Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet
Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist,
and Mug Root Beer account for nearly one-third of total soft drink sales in
the United States.
Pepsi-Cola North America's non-carbonated beverage portfolio includes
Aquafina, which is the number one brand of bottled water in the United
States, Dole single-serve juices and Sobs, which offers a wide range of
drinks with herbal ingredients. The company also makes and markets North
America's best-selling, ready-to-drink iced teas and coffees via joint
ventures with Lipton and Starbucks, respectively.

Overview – PepsiCo
The PepsiCo challenge (to keep up with archrival The Coca-Cola Company)
never ends for the world's #2 carbonated soft-drink maker. The company's
soft drinks include Pepsi, Mountain Dew, and Slice. It owns Frito-Lay, the
world's #1 maker of snacks such as corn chips (Doritos, Fritos) and potato
chips (Lay's, Ruffles). Cola is not the company's only beverage: PepsiCo
sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina
water. PepsiCo also sells Dole juices (licensed) and Lipton ready-to-drink
tea (licensed from Unilever). Its Quaker Foods division offers breakfast
cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near
East). Wal-Mart is PepsiCo's largest customer, accounts for 9% of sales.
PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks
and juice sales help to quench the company's thirst for bottom-line growth.
Frito-Lay's salty snacks rule the US market; the snack division accounts for
about one-third of company sales.
The company announced a major restructuring in 2007, splitting its two
business units (Pepsi-Cola North America and PepsiCo International) into
three: one for US food, a second for US drinks, and a third for food and
drinks abroad. CEO Indra Nooyi said that due to the company's healthy
growth in recent years, PepsiCo is approaching a size that can be better
managed as three units rather than two.

19
The split looks like this: PepsiCo Americas Foods includes Frito-Lay North
America, Quaker, and the Latin American food and snack businesses;
PepsiCo Americas Beverages includes North American beverage sales,
including Gatorade and Tropicana; and PepsiCo International includes
business in the UK, the rest of Europe, Asia, the Middle East, and Africa.
With a saturated soft-drink market, the company continues to try new
iterations: In 2007 the company introduced its first vitamin-enhanced water,
called Aquafina Alive. It signed a licensing agreement with Ben & Jerry's in
2006 for the sale of Ben & Jerry's milkshakes in the US, as well as a deal
with Starbucks for the distribution of the coffee purveyor's Ethos water
brand. Hot on the heels of Coke's introduction of Blak, in 2006 Pepsi
launched a coffee-flavored cola, named, Pepsi Max Cino, in the UK.
Venturing further into the non-cola category, PepsiCo acquired sparkling
juice companies IZZE and Naked Juice in 2006. It also began selling
Fuelosophy, a smoothie drink, at organic grocery store chain Whole Foods,
and struck a deal to develop products with juice maker Ocean Spray
Cranberries.
Bowing to the public's growing concern about childhood obesity, in 2006
Pepsi, along with Coca-Cola, Cadbury Schweppes, and the American
Beverage Association agreed to sell only water, unsweetened juice, and lowfat milk to public elementary and middle schools in the US. As for high
schools, the agreement calls for no sugary sodas to be sold and one-half of
the offered drinks to be water, diet sodas, lemonade, or iced tea. The
agreement was facilitated by former president Bill Clinton.
CEO Steve Reinemund stepped down as CEO in 2006 in order to spend
more time with his family. His replacement was Indra Nooyi, the company's
president and CFO. Indian-born Nooyi, the 11th female CEO of a
FORTUNE 500 company, has been instrumental in strategic decisions at the
company, such as the acquisition of Tropicana and merger with Quaker
Oats.
Shortly after her appointment, Nooyi restructured the top level of power at
the company. She appointed John Compton, previously head of the QuakerTropicana-Gatorade unit, to the newly created position of CEO for PepsiCo
North America, reporting directly to her.

20
How PepsiCo overcame Competition
How PepsiCo outgunned Coke:
Losing the cola wars was the best thing that ever happened to Pepsi while
Coke was celebrating; PEPSI took over a much larger market.
Pepsi beat Coke in December for the first time in their 108-year rivalry,
surpassing its nemesis in market capitalization. The great irony of Pepsi's
rise is this: It has never sold more soda than Coke, even today.
"Pepsi's been on fire," notes Robert van Brugge, beverage analyst with
Sanford 55Bernstein. Over the past five years its stock has risen more than a
third, while Coke's has sunk 30 percent.
Even ten years ago, it was easy to write off PepsiCo (Research) as the loser
in the cola wars against Coke (Research): the proof was everywhere. The
company's profits trailed those of its rival in Atlanta by 47 percent. Its value
in the stock market was less than half of Coca-Cola's. Coke's CEO at the
time, Roberto Goizueta, was so sure of his company's dominance that he
practically dismissed Pepsi, telling FORTUNE, "As they've become less
relevant, I don't need to look at them very much anymore."
PepsiCo turned its cola Waterloo into an opportunity to retrench, regroup,
and ultimately outflank its old foe. Losing the cola wars, it turns out, was the
best thing that ever happened to Pepsi. It prompted Pepsi's leaders to look
outside the confines of their battle with Coke.
A decade ago, Coke offered investors a compelling story: a recessionresistant product inexpensive enough that consumers would buy it in good
times and bad, but valued enough that they would willingly pay an extra
nickel or so above what no-name brands charged.
What Coke investors didn't envision was that an emerging preference for
other soft beverages --water, sports drinks -- would fracture demand. Nor did
they see that the business strengths that once applied to cola would take hold
across a broadened soft drink and snack-food market -- a market that Pepsi,
and not Coke, dominated.

21
"They were the first to recognize that the consumer was moving to
noncarbonated products, and they innovated aggressively," observes Gary
Hemphill of Beverage Marketing.
PepsiCo embraced bottled water and sports drinks much earlier than its rival.
Pepsi's Aquafina is the No. 1 water brand, with Coke's Dasani trailing; in
sports drinks, Pepsi's Gatorade owns 80 percent of the market while Coke's
PowerAde has 15 percent.
Throughout the past five years under CEO Steve Reinemund, the company
has deftly moved with every shift in consumer tastes. "He's thinking about
what the products should look like in the future," says Victor Dzau, a
director of PepsiCo.

22
SCA’s

Three major sustainable competitive advantages give PepsiCo a
competitive edge as we operate in the global marketplace:
• Big muscular brands;
• Proven ability to innovate and create differentiated products; and
• Powerful go to market systems.

Build and Born SCA’s:
Hyper competition;
•
•
•
•

Cost and Quality.
Timing and know how.
Strongholds.
Deep pockets.
Strategic Competitive Advantage

Exploitation
Profits from a
sustained
competitive
advantage

Launch

Counterattack

Traditional View

Time
Firm has already moved to advantage 2
Profits from a
series of
actions

Exploitation

Counterattack

Hypercompetition

Launch

Time

23
Fig: 1Coke: 1886; Pepsi: 1893.

Pepsi

Coke

Price / Ounce

Price / Ounce

1933: Pepsi struggling to stave off bankruptcy. Dropped price of its 10c, 12
oz. bottle to 5c, making it a better value. Ad jingle “twice as much for a
nickel” better known in the US than the Star Spangled Banner.

Perceived Quality

Coke
Pepsi

Perceived Quality

Fig.2
Pepsi keeps price advantage through 60s and 70s, when Pepsi charged its
bottlers 20% less for its concentrate.

Pepsi

Coke

Perceived Quality

Price / Ounce

Price / Ounce

With rising ingredient costs, Pepsi could no longer offer twice as much for
the same price. So, it raised price to Coke’s level giving it a war chest to fuel
an aggressive ad campaign. Battle shifted from Price to Quality, with Pepsi
targeting the youth.

Coke
Pepsi
24

Perceived Quality
What followed was the Pepsi Challenge & “Real Thing” Coke ads

Fig.4

Pepsi

Coke

Youth & Middle
Class Segments
Perceived Quality

Price / Ounce

Price / Ounce

Fig.3
First move:
Pepsi
Challenge
2nd move:
Coke’s Ad war
Perceived Quality

Perceived quality caught up. Deeper pocketed and lower cost Coke initiated
a price war in selective markets where Pepsi was weak in the 70s. Pepsi
responded with its discounts and by the end of the 80s, 50% of food store
sales were on discount.
Other companies moved into the lower left quadrant of.

25
BUSINESS SEGMENTS
The RKJ Group is divided into three-business segments- Beverage,
Food and Education. It has a leading market position in each of its
three business segments. Our balanced portfolio produced a solid
business performance. Products and services, which look to the
future, ensure that we will be well placed in growth markets.

26
BEVERAGE INDUSTRY

Indian Beverages industry’s size is Rs. 8000 Crore and it is dominated by
two player’s viz. Pepsi & Coke only. This high profile industry has lot of
potential for growth as per capita consumption in India is 8 bottles a year as
compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a
person in Nepal.
The RKJ group is India's leading supplier of retailer brand Carbonated and
Non-Carbonated soft drinks, with beverage manufacturing facilities in India
and Nepal. Its experience in the beverage industry dates back to the sixties
when it had the first franchise at Agra.

27
The group manufactures and markets carbonated and Non-Carbonated Soft
Drinks and Mineral Water under Pepsi brand. The various flavors and subbrands are Pepsi, Mirinda Orange, Mirinda Lemon, Mountain Dew, and
7UP, Slice Mango, Evervess Soda and Aquafina.

It has the license to supply beverages in the territories of Western U.P., part
of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of
Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in
total 18 bottling plants in India & Nepal and is responsible for producing
and marketing 44% of Pepsi requirement in India.
In order to later to this increasing demand, new bottling plants are being set
up at alwer, kosi, Jodhpur, Kathmandu and goa to produce400-600 bottles
per minute, which would mainly cater to northern markets of India. And in
future, they will also be used to manufacture fruits mince- based soft drinks
Like slice and mangola.

INGREDIENTS OF SOFT DRINK:
In the United States, Pepsi is made with carbonated water, high fructose corn
syrup, caramel color, sugar, Phosphoric acid, caffeine, citric acid and natural
flavors. A can of Pepsi (12 fl ounces) has 41 grams of carbohydrates (all
from sugar), 30 mg of sodium, 0 grams of fat, 0 grams of protein, 38 mg
of caffeine and 150 calories. The caffeine-free Pepsi-Cola contains the same
ingredients but without the caffeine.
The original Pepsi-Cola recipe was available from documents filed with the
court at the time that the Pepsi-Cola Company went bankrupt in 1929. The
original formula contained neither cola nor caffeine.
In August 2010, PepsiCo entered into a 4-year agreement with Senomyx for
the development of artificial high-potency sweeteners for PepsiCo
28
beverages. Under the contract, PepsiCo is paying $30 million to Senomyx
for the research and future royalties on PepsiCo products sold using
Senomyx technology.
According to PepsiCo, PepsiCo's collaboration with Senomyx will focus on
the discovery, development and commercialization of sweet enhancers, with
the purpose of providing lower-calorie PepsiCo beverages. PepsiCo will
have exclusive rights to the Senomyx sweet flavor ingredients developed
through the collaboration.
See also











Diet Pepsi
Pepsi spokespersons
Pepsi Max Big One (Roller coaster)
Pepsi Orange Streak (Roller coaster)
Pepsi Python (Roller coaster)
Pepsi Billion Dollar Sweepstakes
Mountain Dew
AMP Energy
Citrus Blast
Pepsi Next

We only use the finest ingredients to make Pepsi-Cola products. To
guarantee our consumers consistent quality, each ingredient must pass our
high standards, rigorous quality control tests and strict bottling procedures.
Pepsi-Cola products contain natural flavors, including extracts of the kola
nut ND flavor oils derived from natural sources such as citrus and other
fruits. Caramel (made from corn sugar) adds color and flavor to our colas.
Other ingredients add a refreshing taste: phosphoric acid in colas; citric acid
and sodium citrate in Mountain Dew, Slice and Diet Pepsi.
We also put a freshness date on every can and bottle. Soft drinks may lose
some flavor over time so our freshness date tells consumers when the
product is freshest and best tasting.
Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel,
which shows the number of calories and other nutrients per serving. There is
essentially no fat in any Pepsi-Cola a product. The main ingredients found in
29
Pepsi-Cola products include carbonated water, carbohydrates, sugar, sodium,
potassium and caffeine. For a complete breakdown by ingredients by
product, see our product information for Pepsi, Diet Pepsi, Mountain Dew,
Slice and Aquafina.

Ascorbic Acid
Another name for Ascorbic Acid is Vitamin C the Ascorbic Acid used in our
carbonated soft drinks functions as an antioxidant to protect the flavors,
color, and taste. In some beverages we also add it to provide the nutritive
value found in Vitamin C.

Aspartame
Aspartame is a sugar substitute used in our diet beverages and many other
food products. Aspartame is made of the same building blocks as protein, so
it is considered a "nutritive sweetener," but the very small amounts used in
diet drinks contribute no calories.

Blue1
Blue 1 is a FDA-approved food coloring used in a variety of products such
as jellies, condiments, puddings, and beverages.

Brominated Vegetable Oil (BVO)
Brominated vegetable oil has been used by the soft drink industry since
1931. It is a widely used food additive that has been extensively tested and
approved by the U.S. Food & Drug Administration.
Brominated vegetable oil is derived from soybean oil that has been modified
in order to keep the flavoring oils well blended.

Caffeine
30
Caffeine provides a characteristic flavor to soft drinks. Caffeine is naturally
found in coffee, tea and chocolate. For comparison, an 8-oz. cup of brewed
coffee can have from 85-120 mg of caffeine on average, while an 8-oz.
serving of Pepsi contains about 25 mg of caffeine. An 8-oz. cup of coffee
therefore contains three to four times as much caffeine found in a caffeinated
colon.
There is no caffeine in Caffeine Free Pepsi, Caffeine Free Diet Pepsi,
Aquafina, Slice, Mountain Dew or Mirinda.

Caramel
Caramel is a flavoring that is added to some of our beverages.

Citric Acid
Citric Acid can be found in citrus fruits such as lemons and oranges. Citric
acid is used to bring out the flavor of other ingredients and imparts a tang or
tartness to beverages. Citric acid is not Vitamin C. the same fruits that have
citric acid often have Vitamin C but the technical name for Vitamin C is
ascorbic acid.

Gum Arabic
Gum Arabic is a purified natural vegetable gum obtained from the acacia
tree and is used in keeping our carbonated beverages well blended.

High Fructose Corn Syrup
High Fructose Corn Syrup (HFCS) is a sugar derived from corn and
provides sweetness and taste to our beverages.
HFCS has the same sweetness as table sugar (sucrose) and has almost the
identical composition of fructose and glucose.

Natural Flavorings

31
Natural Flavorings are flavoring ingredients that are the essences or extracts
derived from natural plant sources.
Natural Flavorings are what gives a product its distinctive flavor and taste.
Pepsi products are the only products with these distinct flavor blends, which
are considered part of our secret formula. The term natural flavor is defined
by the food and drug administration and all of our natural flavorings meet
this definition.

Phosphoric Acid
A small amount of phosphoric acid is added to our soft drinks. However, it
is greatly diluted and is fully approved by the U.S. Food and Drug
Administration for use in soft drinks. Phosphoric acid provides tartness,
essential to a well-rounded flavor.
Phosphorus, like calcium, is an essential mineral in bone. It is widely
distributed in the food supply, including fish, milk, meat, eggs and cereal
grains.

Potassium
Potassium in Pepsi-Cola products may come from water or as part of certain
ingredients. For example, potassium may be combined with benzoic acid,
which helps prevent spoilage and flavor changes. Potassium is an electrolyte
that helps meet the mineral needs of active people.

Quillaia
Quillaia Extract is a purified extract derived from the bark of the Quillaia
tree. It is carefully selected based on its characteristics. It is cooked, filtered
and pasteurized. It is FDA-approved, non-hazardous. Quillaia is found in
some of our frozen drinks.

Red 40
Red 40 is a FDA-approved food coloring used in beverages.

32
Sodium
All of our products are "low sodium" and contains less than 110 mg per
eight-fluid-ounce serving. A number of beverages have less than 35-mg
sodium per serving, so they are considered "very low sodium" products.

Sugar
Regular soft drinks and sports drinks are sweetened with sugar. There are
many types of sugar available today. In soft drinks and sports drinks, the
sugar is primarily high fructose corn syrup, which comes from corn.

Total Carbohydrates
Total carbohydrates include the sugars and any carbohydrate-like parts of
ingredients, such as organic acids. Although diet drinks may have no sugar,
they may contain more than half a gram of carbohydrate.

Yellow5
Yellow 5 is a FDA-approved food coloring. Used since 1916, it is found in a
variety of products such as skim milk, yogurt and macaroni and cheese.

33
FOOD INDUSTRY
The last decade has been a period of dynamic growth for non-alcoholic
drinks and has witnessed completely new segment of the food market in
India taking shape. Food market at stake in India is enormous. The food
chain and the forces acting on the food chain are changing rapidly, and in a
generally positive manner.
India's sheer size and diversity are enough to make it an attractive market for
nearly every major food, beverage and agribusiness company. A KSA
Technopak study indicates that the fast food industry in India will be worth
$1.27 billion by year 2005.
To capitalize on the RKJ group’s significantly important relationship with
Pepsi Foods, it decided to venture into food sector, which is second largest
business for Pepsi all over the world. Fast food is the most happening thing
across the world.

The group became the first franchisee for Yum Restaurants
International formerly PepsiCo Restaurants (India) Private Limited in India.
It has exclusive franchise rights for Northern & Eastern India. Out of 56
operational Pizza Hut restaurants in the country 27 restaurants are owned
and run by its company.
All these restaurants are making good profits & are dominating the market.
The name of business entity is Devyani International Private
Limited.

ICE CREAMS UNDER “CANDIA” BRAND
The India ice creams and frozen desserts market forms part of the
food industry. Ice creams and frozen desserts are convenience products,
which
are ideally suited to the emerging lifestyles and eating trends of
Urban India.

34
The RKJ group has its presence in the Ice Cream segment since 1991, when
it started manufacturing and marketing Ice Cream under the brand name of
“Gaylord” in the state of U.P.
During 1996 it sold its brand to Brooke Bond and started supplying Ice
Cream to Hindustan Lever as their Ice Cream souring plant. After
working for 10 years in this field, during 2003 it has launched its own
brand in technical and marketing collaboration with Candia of France.

Advertisement and Add Concept:Advertisements are cost effective means to communicate messages and
ideas to build brand preferences and awareness and it is one of the most
important tools which a company uses to direct persuasive communication
to directive buyers in public or to educated people to avoid hard drink and so
on.
The basic objective of advertising is sales promotion sales promotion
expenditure have been increasing as a percent of budget expenditure
annually and the growth is likely to continue in future. Our celebrities signed
by the PepsiCo are as follows:

For PepsiCo.
Celebrities:•
•
•
•
•
•
•
•
•
•

Amitabh Bachchan
Sharukh Khan
Saif Ali Khan
Fardeen Khan
Kareena Kapoor
Preeti Zinta
Priyanka Chopara
Kajol
Rani Mukharjee
Ranbeer Kapoor
35
Cricketers:•
•
•
•
•
•
•
•

Sachin Tendulkar
Saurav Ganguly
Yuvraj Singh
Harbhajan Singh
Rahul Dravid
Zaheer Khan
Mohammad Kaif
MS Dhoni (Captain Team India)

Tennis Stars:• Leander Paes
• Mahesh Bhupati

Football Players:• Cyrus Broacha
• Bhaichung Bhatia

36
37
KEY ELEMENTS OF THE TRADE
1. JO DIKHTA HAI WAI BIKTA HAI: - This is a company slogan, it is
to increase the visibility of the product, the company stresses more on
increasing the number of outlets than on the volumes of sales. That is the
reason of the company providing visibility courses to the shopkeepers.
2. A BOTTLE THAT IS CHILLED IS SOLD: - In the industry it is
considered that a bottle is chilled or putting in cooling compartment is
sold. That is the reason the policy providing triage’s come up because
according to the contract the shopkeeper has to keep only & only Pepsi’s
products in the visicooler.
3. A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI: - The
competition is so strong between the two companies i.e. fighting is on for
each bottle that is to be sold in the market. Competitive bidding goes on
for each & every prestigious outlet in their region. Monopolizing entries
& fat foods joint s is their first priority.
4. EMPTY KA HI KHEL HAI: - [Empty plays an important role]: - As
discussed earlier the distribution points keeps on putting up distribution
schemes for retailers i.e. like two bottles of solution free with the
purchase of every one carat of solution. Now these schemes have timed
well keeping minding the environmental conditions & schemes provided
by the other company. These schemes are of twenty-four hours duration.
If a scheme is launched & there is no empty in the market for refill, the
whole effort goes in vain that is the reason is said ki sub empty ka khel
hai.

38
Products Availability of Pepsi

Sl.

Products

20

250

300

330

500

600

1000

1200

2000

No.

0

ml.

ml.

ml.

ml.

ml.

ml.

ml.

ml.

1.
2.
3.
4.
5.

Pepsi
Pepsi diet
Pepsi Gold
Mirinda
Mirinda

ml




-



-

-


-




-

-

-



-

6.
7.
8.
9.
10.
11.

Lime
M. Sorbet
7Up
M. Dew
Pepsi Can
7Up Can
Mirinda



-

-


-





-




-

-

-



-

12.

Can
M. Dew

-

-

-



-

-

-

-

-

13.
14.
15.
16.
17.

Can
Diet Can
Slice
Aquafina
Tropicana
Everest


-


-




-


-





-


-

-

Lehar

39
Products Availability of Coke:-

Sl.

Products

No.
1. Coco-cola

200

250

300

330

600

1000

1200

1500

ml.


ml.
-

ml.


ml.
-

ml.


ml.
-

ml.
-

ml.


2.

Thumps-Up



-



-



-

-



3.

Sprite



-



-



-

-



4.

Fanta



-



-



-

-



5.

Limca



-



-



-

-



6.

Maaza

-

-



-



-

7.

Coca-cola Can

-

-

-



-

-

-

-

8.

Thumps Up

-

-

-



-

-

-

-

9.

Can
Sprite Can

-

-

-



-

-

-

-

10. Fanta Can

-

-

-



-

-

-

-

11. Cole Diet

-

-

-



-

-

-

-

12. Kinely Soda

-

-

-

-

-



-



-



40
13. Kinely
14. Fruit Juice

NA

-

-

-

-


NA

-

-

120

2000

0

0

ml.

ml.
-

ml.
-

Pepsi Products’ Price (in Rs.) List for Retailers
Sl.

Products

250 300 330 500

600 100

ml.

No.

200

ml.

ml.

1.
2.
3.
4.
5.

Pepsi
166
Pepsi diet
Pepsi Gold
Mirinda
166
Mirinda
216

6.
7.
8.

Lime
M. Sorbet
7Up
M. Dew

-

ml.

ml.

216
214
-

-

216
-

-

214
-

Can
9. Pepsi Can
10. 7Up Can
11. Mirinda

-

-

-

Can
12. M. Dew

-

-

-

214
-

13.
14.
15.
16.

Can
Diet Can
Slice
Aquafina
Tropicana

-

-

560
560
560
- -

500
530
-

- - 560
- 454 - -

-

530
454

-

-

ml.

-

-

-

-

-

-

560
-

-

-

-

-

-

105
-

-

-

-

-

41
17. Everest

-

-

-

-

-

-

-

-

-

120

2000

0

0

ml.

ml.
-

ml.
-

Lehar

Pepsi Products’ Price (in Rs.) List for Retailers
Sl.

Products

250 300 330 500

600 100

ml.

No.

200

ml.

ml.

1.
2.
3.
4.
5.

Pepsi
168
Pepsi diet
Pepsi Gold
Mirinda
168
Mirinda
168

6.
7.
8.

Lime
M. Sorbet
7Up
M. Dew

-

ml.

ml.

214
214
-

-

165
-

-

214
-

Can
9. Pepsi Can
10. 7Up Can
11. Mirinda

-

-

-

Can
12. M. Dew

-

-

-

214
-

13.
14.
15.
16.

Can
Diet Can
Slice
Aquafina
Tropicana

-

-

ml.
-

560
560
- 560
- -

-

- - 560
- 454 - -

-

530
-

-

-

500
530
-

-

-

-

-

-

-

444
-

-

-

-

-

-

105
-

550
-

-

-

TYPE OF PACKS AVAILABLE :-

42
QUANTITY
RATES

MRP/PCs

200ml (24b/s per crate)

10/-

168/-

300ml (24b/s per crate)

12/-

168/-

600ml (24b/s per peti)

27/-

216/-

2-liter (9b/s per peti)

59/-

500/-

200ml (24b/s per crate) slice

10/-

166/-

1000ml (12b/s per crate) slice

40/-

430/-

200ml (24PCspercrate) tetra slice

10/-

168/-

500ml (24b/spercrate) diet Pepsi

20/-

560/-

330ml (24PCs) diet Pepsi cane

25/-

454/-

330ml (24PCs) Pepsi cane

20/-

454/-

500ml (24PCs) pepsi café-chino

20/-

430/-

SODA: Lehar Soda 300ml (24PCs per crate)

6/-

120/-

Lehar Soda 600ml (24b/s per peti)

10/-

216/-

WATER: Aquafina-1liter (12b/s per peti)

103/-

43
Aquafina-2liter (12b/s per peti)

199/-

A price generally depends upon the company.

PRICING OF EMPTIES
QUANTITY

PRICE

200ml

Rs.165 per crate

300ml

Rs.214 per crate

The Shell Cost Rs 100/- each
Empty bottle Rs 6/- each

PROMOTION: -

44
The promotion budget is set by the Head Office and thereby is distributed
among the different bottler’s all over the country on the basis of there past
performances & requirements.
Distribution Network in Greater Noida
PEPSI FOODS LTD (Parent Co.)
Greater Noida
VARUN BEVERAGE LTD (Bottling Plant)
Greater Noida

Distributors

Distributors
C&F
Distributors
Fat Dealer (2)

Fat Dealers (4)

Fat

Dealers (2)

Retailers

Retailers

Retailers

Retailers

CONSUMERS

Slogans
45
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1939–1950: "Twice as Much for a Nickel"
1950: "More Bounce to the Ounce"
1950–1957: "Any Weather is Pepsi Weather"
1957–1958: "Say Pepsi, Please"
1958–1960: "Don't be a Tramp, Buy a Can" Zane
1961–1964: "Now It's Pepsi for Those Who Think Young" (jingle
sung by Joanie Sommers)
1964–1967: "Come Alive, You're in the Pepsi Generation" (jingle
sung by Joanie Sommers)
1967–1969: "(Taste that beats the others cold) Pepsi Pours It On".
1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"
1975–1977: "Buy a can 50p" (United Kingdom)
1977–1980: "Join the Pepsi People (Feeling Free)"
1980–1981: "Catch That Pepsi Spirit" (David Lucas, composer)
1981–1983: "Pepsi's got your taste for life"
1983: "Its cheaper than Coke!"
1983–1984: "Pepsi Now! Take the Challenge!"
1984–1991: "Pepsi. The Choice of a New Generation" (commercial
with Michael Jackson and The Jacksons, featuring the Pepsi version of
"Billie Jean", "Bad" and "Black or White". "Black of White"'s was
promoting the Dangerous World Tour.)
1984–1988: "Diet Pepsi. The Choice of a New Generation"
1988–1989: "Diet Pepsi. The Taste That's Generations Ahead"
1989–1990: "Diet Pepsi. The Right One"
1989–1992: "Diet Pepsi. The Taste That Beats Diet Coke"
1986–1987: "We've Got the Taste" (commercial with Tina Turner)
1987–1990: "Pepsi's Cool" (commercial with Michael Jackson,
featuring Pepsi version of Bad)
1990–1991: "You got the right one Baby UH HUH" (sung by Ray
Charles for Diet Pepsi)
1990–1991: "Yehi hai right choice Baby UH HUH" (Urdu, Hindi –
meaning "This is the right choice Baby UH HUH") (Pakistan), (India)
1991–1992: "Gotta Have It"/"Chill Out"
1992:"The Choice Is Yours"

46
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




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










1992–1993: "Be Young, Have Fun, Drink Pepsi"
1993–1994: "Right Now" (Van Halen song for the Crystal
Pepsi advertisement)
1994–1995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz)
1995: "Nothing Else is a Pepsi"
1995–1996: "Drink Pepsi. Get Stuff." (Pepsi Stuff campaign)
1996:"Change The Script"
1996–1997: "Pepsi: There's nothing official about it" (During the
Wills World Cup (cricket) held in India/Pakistan/Sri Lanka)
1997–1998: "Generation Next" (with the Spice Girls)
1998–1999: "Its the cola" (100th anniversary commercial)
1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola"
(commercial with Britney Spears/commercial with Mary J. Blige)
1999–2006: "Yeh Dil Maange More!" (Hindi – meaning "This heart
asks for more") (India)
2002: "Change the World" (Japan)
2003: "Its the Cola"/"Dare for More" (Pepsi Commercial)
2006–2007: "Why You Doggin' Me"/"Taste the one that's forever
young" (Mary J. Blige)
2007–2008: "More Happy"/"Taste the once that's forever young"
(Michael Alexander)
2000–present: "Pepsi ye pyaas heh badi" ((Urdu), ((Hindi)) meaning
"There is a lot of thirst" (Pakistan)) ((India))
2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
2008: "Pepsi is #1" TV commercial (Luke Rosin)
2008–present: "Something For Everyone"
2009–present: "Refresh Everything"/"Every Generation Refreshes the
World"
2009–present: "Yeh hai youngistaan meri jaan" (Hindi – meaning
"This is our young country my baby")
2009–present: "My Pepsi My Way"(Pakistan) (India)
2009–present: "Refresca tu Mundo" (Spanish – meaning "Refresh
your world") (Spanish Spoken countries in Latin America)
2009: "Joy It Forward" (Canada)
2010–present: "Every Pepsi Refreshes The World"

47
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















2010–present "Pepsi. Sarap Magbago." (Philippines – meaning "Its
nice to change")
2010–2011 "Badal Do Zamana" (Urdu – meaning "Change The
World" by CALL)(Pakistan)
2010–2011 "Love!" (Japan, for Pepsi Nex)
2010–present: "Pode ser bom, pode ser muito bom, pode ser Pepsi"
(Can be good, can be very good, can be Pepsi) – Brazil and Portugal
2011–present: "Change the game" (India, Bangladesh & Pakistan for
the 2011 Cricket World Cup)
2011–present "Dunya Hai Dil Walon Ki" (Pakistan-meaning World is
For Lovers by Ali Zafar)
2011–present "Ici, c'est Pepsi" (Québec-meaning Here, it's pepsi)
2011–present "Go next!" (Japan, for Pepsi Next)
2011–present "Summer Time is Pepsi Time"
2011–present "Born in the Carolinas"
2012: "Where there's Pepsi, there's music" – used for the 2012 Super
Bowl commercial featuring Melanie Amaro
2012 "Live For Now"
2012 Pepsi, Now “Change the Game”.

48
DISTRIBUTION STRATEGIES
A Company can choose any of the following distribution types: • Exclusive Distribution
• Selective Distribution
• Intensive Distribution
“PEPSI” HAS
STRATEGY.

ADOPTED

THE

INTENSIVE

DISTRIBUTION

INTENSIVE DISTRIBUTION:
A Strategy of intensive distribution is characterized by placing the goods or
services in as many outlets as possible. When the consumer requires a great
deal of location convenience, it is important to offer greater intensity of
Distribution. This strategy is generally used for convenience items such as
Tobacco, gasoline, and soap, snack foods & bubblegum.
Manufactures are constantly tempted to move from exclusive or selective
distribution to more intensive distribution to increase their coverage and
sales and you could find Pepsi in nursing homes, confectionery shops,
departmental stores; you name it & Pepsi is available there.

49
DISTRIBUTION CHANNEL REDIFINED
Pepsi has redefined distribution to strengthen their competitive advantage in
the emerging consumer and market scenario. Their earlier focus was to drive
wide availability and enable easy access to their brands for consumers. Now
they seek to go well beyond this distribution paradigm. Their new approach
is more holistic touching consumers in multiple ways at the point of
purchase and more importantly, creating opportunities for customers to
receive brand message and experience our brands.
They are proactively addressing these emerging trends by approaching
distribution and channels in a much broader way. They are shifting emphasis
from mere reach or availability expansion to touching consumers with a 3way convergence- of product availability, brand communication and higher
level of brand experience.
They are thus going beyond delivering products and creating greater
engagement and interaction around the purchasing experience.

Product
Availability

Point
Of
Purchase

Brand
Communication

Brand
Experience

Pepsi’s reinvention of distribution is built on an understanding of emerging
consumer trends, the retail environment and the growth drivers of our
brands.

50
Pepsi’s distribution system is a key external resource. Normally it has taken
years to build and cannot be easily changed. It ranks in importance with key
internal resources such as manufacturing, research, engineering and field
sales personals. It represents significant corporate commitment to set
policies and practices that constitute the basic fabric on which is woven an
extensive set of long run relationship.

51
CHANNEL FUNCTION AND FLOWS
Marketing channel perform the following functions• To gather the information about potential and current customers, and
competitors.
• To reach agreements on Price
• To list orders with manufacturers.
• They provide the successive storage and movement of physical
products.
It can be defined as backward and forward integration i.e. starting from
supplier of the raw material to the end customer. The physical flow of Pepsi
from its manufacturing unit at Kosi (Varun Beverages) to various retailers in
Sahibabad is as follows-

52
PRODUCT & PACK PROFILE
PRODUCT: Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known
are one of the largest FMCG market in the whole world with the total annual
sales around $40 billion. This product is generally available in four kinds of
packing.
•
•
•
•

Glass Bottles
Pet Bottles
Cans
Fountain rim

FLAVORS: •
•
•
•
•
•
•

Cola
Orange
Clear Lemon
Cloudy Lemon
Berry
Ginger
Mango Slice

Out of these products the 70% of the sales of the company come from the
Cola brand, which is the market leader in the most part of the country of
these kinds of packaging in which the product is available make them 80%
of the sales come from these bottles. The businesses of returnable bottles are
very cumbersome and make the market very complex and demanding.

53
Facilities Provided By The Customer To The Retailer

1. VISI COOLER
•
•
•
•
•
•
•
•
•
•
•

65 Liter
110 Liter
120 Liter
165 Liter
200 Liter
210 Liter
220 Liter
300 Liter
320 Liter
330 Liter
500 Liter

According to outlet nature, volume & investment of the outlet.
2. SCHEMES OF VOLUME PURCHASE
• Cash discount
• Card discount (sampling)
3. DISPLAY MATERIAL
•
•
•
•
•
•
•

Stickers
Banners
G.S. Boards
D.P.S. Boards
Racks
Counters
Umbrellas

54
OBJECTIVE OF THE STUDY
• To find out the problems faced by the channels of distribution.
• To increase penetration in the market.
• To find out availability of Pepsi & Coke in the outlets.
• To see the distribution gap by which the product is selling.

55
RESARCH METHODOLOGY
Research in common refers to a search of knowledge. One can also define
research as a scientific & systematic search for pertinent information of a
specific topic. It is the pursuit of truth with the help of study observation,
comparison & experiment.
DEVELOPING RESARCH PLAN:
After deciding the objective of marketing research the next step is deciding
Research plan for gathering effective information related to this research
project. The research consists of following steps, which are discussed
subsequently.
Research Design:
Descriptive Research: In my market survey descriptive research process was
carried out to describe the market characteristics, consumer profiles,
distribution strategies, and market potential.
Data Source:
During project study I use both primary as well as secondary data source.
For primary data collection I visited various retailers in Ghaziabad & for
secondary data I went through Books, Journals & Internet. The information
collected is relevant, correct & unbiased.
Research Design:
I followed survey technique for collecting the data. In market survey
research approach. Here, I carried out information from retailers have
carefully selected the instrument & methods of surveying like I have chosen
personal contact methods because of higher response rate & meaningful
responses this helped me to get the general feedback in Pepsi, etc.
Reach Instrument:
The research instrument used was EDS form. In which market information
detail of each outlet should be filled in EDS form. For this I have visited
56
each & every outlet & check all the brands & packs of Pepsi are available or
not or which one is available in comparison with Coke & filled it in EDS
forms. In my research process I have used closed ended & open-ended
questionnaire where respondents could answer in their own manner.
Through this I was able to extract information from the respondents about
Pepsi’s products & the competitors.
Sampling Plan:
In designing the sampling plan following points were considered:
Sampling Unit: It includes who is to be a surveyed retailer of Greater Noida.
Sampling Size: I have surveyed about each & every outlet of the area
specified to me so size would reach upto 700 retailers.
Elementary Retailers:
The geographical limit is the area of Greater Noida.
Contact Method:
In my research process, I have collected information through personal
interview process with the help of EDS. Form given by the company
because it is the most reliable & accurate method for collecting primary data.
Through this, the analysis of body language & facial expressions can be
made.
Methods of data interpretation:
In this market study I have used pie chart for data analysis & interpretation
because pie chart is the easiest & comprehensive medium for presentation of
data.
Sampling unit is a single retailer’s outlet which may be:-provision store,
stationery shop, eatery &kiosk.
The universe studied is the sum of the retailers in the Greater Noida area.

57
DATA ANALYSIS FROM RETAILERS &DISTRIBUTORS
PERSPECTIVE:

Frequencies

PepsiCo having good distrbution channel

Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree

6.67%
3.67%

18.67%

7.0%

64.0%

If we see the chart then we find that out of 100% respondent 64% are agree
that PepsiCo have good distribution channel and only 18.67% are strongly
agree, the data shows that company should focus on their distribution

58
channel and try to convert customer in strongly agree respondent by
providing them better services and schemes.

Distribution channel is importent in positioning of product

Strongly agree
Agree
Can't Say
Strongly Disagree
1.0%

Dis Agree

18.0%

41.33%

38.33%

59
If we see the chart then we find that out of 100% respondent 41.33%
respondent are strongly agree that distribution channel have an important
role in positioning of the product and 38.33% are agree and rest are disagree,
it shows that our objective is fulfilled by this research and we can say that if
we have to promote our product then we should have strong distribution
channel.

V.C. coolors provided by the company

yes
No

29.67%

70.33%

60
If we see the chart then we find that out of 100% respondent, 70.33% are
saying that they are getting V.C. coolers but 29.67 % are saying that they are
not getting, it means company is not focusing on all retailers that major
concerns for the organization.

PepsiCo relationship with the retailers/distributors

Strongly agree
Agree
Can't Say
Strongly Disagree
4.67%

Dis Agree

10.0%
27.33%

3.67%

54.33%

61
If we see the chart then we find that out of 100% respondent 27.33%
respondent are

strongly agree that PepsiCo has maintaining good

relationship with them and 10% are strongly disagree and 54.33 % are agree,
it shows that company should thing that how can they maintain better
relationship with every retailers and distributors.

62
Perception of retailers/distributors towards the pepsiCo
Distribution channel
Excellent
Good
Bad
Worst
10.67%
5.33%

35.33%

48.67%

If we see the chart then we find that out of 100 % respondent only 35.33%
are saying that PepsiCo have excellent distribution channel and 10.67% are
saying that PepsiCo have worst distribution and 48.67 % are saying that
PepsiCo have good distribution channel, here area of concern that how
company can make happy those respondent who are thinking that PepsiCo

63
have worst/bad Distribution channel and how can company develop good
distribution channel and change the perception of retailers and distributors.

"If better scheme is given then replace with coke"

yes
No

48.67%

51.33%

If we see the chart then we find that out of 100% respondent, 51.33%
respondent are saying that if they will get better services and scheme then
they will switch over to another brand like coke and only 48.67% are saying
that they will not switchover, it show that company should focus that how

64
can be provided better schemes and services to the retailers and distributors
in result they will not switchover to another brand.
Cross tabulation:
PepsiCo having good distribution channel * PepsiCo relationship with
the retailers/distributors
Symmetric Measures
Assump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.593

.042

12.706

.000(c)

.532

.048

10.851

.000(c)

300

A. Not assuming the null hypothesis.
B. Using the asymptotic standard error assuming the null hypothesis.
C.Based on normal approximation.

65
Bar Chart
PepsiCo
relationship with the
retailers/distributors

140

Strongly agree

120

Agree
Can't Say
Strongly Disagree

100

Dis Agree

t
n
u
o
C

80
42.33%

60

40
18.33%

20
8.33%

5.67%
1.33%

0
Strongly
agree

Agree

1.0%

Can't Say

0.67%

Strongly
Disagree

0.67%

0.33%

Dis Agree

PepsiCo having good distrbution channel

If we see the table then we find that the relationship with the retailers and
distributors having an important role in maintaining the good distribution
channel because 42.33% respondent are agree to say that we have good
relation with the PepsiCo and that shows that PepsiCo having good
distribution channel.
PepsiCo relationship with the retailers/distributors * Time taken by
the company to make reach the product at retailers shop

66
Symmetric Measures
As
sump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.710

.027

17.383

.000(c)

.664

.036

15.334

.000(c)

300

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

67
Bar Chart
Time taken by the
company to make
reach the product at
retailers shop

100

One Day

80

3 Day
One Week
One Month

t
n
u
o
C

60

29.33%

40

24.67%
22.0%

20
8.67%
5.33%
0.33%

0
Strongly
agree

Agree

1.67%

Can't Say

2.0%

1.33%

Strongly
Disagree

Dis Agree

PepsiCo relationship with the
retailers/distributors

If we see the table then we find that out of 100% respondent 29.33%
respondent are saying that we have good relation with the PepsiCo because
they are providing products at right time .

PepsiCo relationship with the retailers/distributors * V.C. coolers provided
by the company.

68
Symmetric Measures
As
sump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.592

.046

12.674

.000(c)

.535

.047

10.927

.000(c)

300

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

69
Bar Chart
V.C. coolors
provided by the
company

140

yes

120

No
100

t
n
u
o
C

80
44.33%

60

40

24.67%

20

0

10.0%
2.67%

Strongly
agree

10.0%
1.0%

0.33%

Agree

Can't Say

Strongly
Disagree

Dis Agree

PepsiCo relationship with the
retailers/distributors

If we see the table then we find that out of 100% respondent 44.33%
respondent are agree to say that they have good relationship with PepsiCo
because of they are getting visi coolers by the company, it means visi
coolers have an important role in maintaining the good relationship with the
retailers.
PepsiCo relationship with the retailers/distributors * “If better scheme is
given then replace with coke"

70
Symmetric Measures
AsSump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

-.429

.041

-8.203

.000(c)

-.479

.045

-9.427

.000(c)

300

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

71
Bar Chart
"If better scheme is
given then replace
with coke"

120

yes

100

No

t
n
u
o
C

80

60
34.67%

40

24.33%
19.67%

20
8.67%
4.33%

3.0%

0.67%

0
Strongly
agree

Agree

Can't Say

1.33%

Strongly
Disagree

0.33%

Dis Agree

PepsiCo relationship with the
retailers/distributors

If we see the table then we find that 24.33% are strongly aree that they will
not switchover to another brand because of better scheme but 34.67%
respondent are strongly agree that if they will get better services and
schemes then they will switch over to an- other company’s brand, it shows
that if company have to ,maintain good relationship with retailers and
distributors then company will be focus on better services and schemes.
PepsiCo having good distribution channel * logistics facility of the company

72
Symmetric Measures
Assump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.216

.031

3.815

.000(c)

.230

.047

4.075

.000(c)

300

a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.

73
Bar Chart
logistics facility of
the company

150

own
company

100

t
n
u
o
C

53.0%

50

13.33%

11.0%
7.0%

5.33%

0
Strongly
agree

Agree

Can't Say

3.67%

Strongly
Disagree

6.67%

Dis Agree

PepsiCo having good distrbution channel

If we see the table then we find that out of 100% respondent 53% respondent
are agree to say that better facility of logistics have an important role in
having good distribution channel .
Visi coolers provided by the company * PepsiCo having good distribution
channel

74
Symmetric Measures
Assump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.487

.049

9.632

.000(c)

.443

.052

8.530

.000(c)

300

A, Not assuming the null hypothesis.
B Using the asymptotic standard error assuming the null hypothesis.
C. Based on normal approximation.

75
Bar Chart
PepsiCo having
good distrbution
channel

150

Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree

t
n
u
o
C

100

50.67%

50

16.33%

0

13.33%

2.0%

0.67%

2.33%

yes

5.0%

3.0%

6.0%

No

V.C. coolors provided by the company

If we see the table then we find that out of 100 % respondent, 50.67% are
saying that they are agree to say that PepsiCo have good distribution channel
because they are getting visi coolers from the company, it shows that visi
coolers have an important role in having a good distribution channel.
Visi coolers provided by the company * Perception of retailers/distributors
towards the PepsiCo Distribution channel

76
Symmetric Measures
Assump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.544

.048

11.184

.000(c)

.442

.056

8.509

.000(c)

300

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

77
Bar Chart
Perception of
retailers/distributors
towards the
pepsiCo Distribution
channel

125

100

Excellent
Good
Bad
Worst

t
n
u
o
C

75

40.33%

50
29.33%

25

6.0%

0

10.67%

8.33%
4.67%

0.67%

yes

No

V.C. coolors provided by the company

If we see the table then we find that out of 100% respondent, 40.33%
respondent are saying that PepsiCo have good distribution channel because
they are getting visi coolers from the company, it shows that visi coolers are
very important for having good distribution channel.
Time taken by the company to make reach the product at retailers shop *
PepsiCo having good distribution channel

78
Symmetric Measures
AsSump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.735

.028

18.714

.000(c)

.713

.030

17.575

.000(c)

300

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

79
Bar Chart
PepsiCo having
good distrbution
channel

120

Strongly agree

100

Agree
Can't Say
Strongly Disagree

t
n
u
o
C

80

Dis Agree

60
35.33%

40

27.33%

18.67%

20
6.0%

0

0.67%

One Day

5.0%

0.67%

1.33% 1.0%

3 Day

One Week

0.33% 1.0%

One Month

Time taken by the company to make reach
the product at retailers shop

If we see the table then we find that 18.67 % respondent are strongly agree
that PepsiCo good distribution channel because they are getting product
within one day and 35.33% respondent are agree to say that PepsiCo have
good distribution channel if they are getting product within 3 days,it shows
that company’s distribution is depends on time that how quick company is
providing product at door of the retailers/distributors.
PepsiCo having good distribution channel * Services provided by the
distribution/PepsiCo

80
Symmetric Measures
As
sump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.640

.048

14.361

.000(c)

.562

.043

11.727

.000(c)

300

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

81
Bar Chart
Services provided
by the
distribution/PepsiCo

200

yes
No

t
n
u
o
C

150

100
59.0%

50
18.67%
5.0%

0
Strongly
agree

Agree

3.33%

Can't Say

0.67%

Strongly
Disagree

1.0%

Dis Agree

PepsiCo having good distrbution channel

If we see the table then we find that 59.0% respondent are agree to say that
PepsiCo have good distribution channel because they are getting good
services and only 18.67% are strongly agree, it shows that better services
and schemes have an important role in maintain good distribution channel.

Distribution channel is important in positioning of product * “How
accurately they fill the order"

82
Symmetric Measures
As
sump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.097

.034

1.675

.095(c)

.191

.044

3.365

.001(c)

300

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

83
Bar Chart
"How accurately
they fill the order"

125

100%
50-80%
100

75

t
n
u
o
C

41.0%

50

21.0%
17.33%

25

0

18.0%

1.0%

0.33%

Strongly
agree

Agree

Can't Say

Strongly
Disagree

1.33%

Dis Agree

Distribution channel is importent in
positioning of product

If we see the table then we find that 41.0% respondent are strongly agree to
say that distribution channel have an important role in positioning of the
product because of only by good distribution channel they are getting fill
their order by 100%.

84
DATA ANALYSIS FROM CONSUMERS PERSPECTIVE:

Frequencies:

Demanded brand Available in the Market

yes
No

45.0%
55.0%

If we see the chart then we find that out of 100%respondent, only 55%
respondent are agree to say whatever brand they demanded they are easily
get that but 45% respondent are saying that they are not getting the
demanded brand, it is major concern that why these respondent are not able
to get their demanded brand.

85
Cross Tabulation:
Age of the respondent * Soft drink consumed by the respondent in a
week
Symmetric Measures
As
Sump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

.332

.106

3.489

.001(c)

.322

.103

3.363

.001(c)

100

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

86
Bar Chart
Soft drink
consumed by the
respondent in a
week

30

25

one
two to three
three to five
more than five

t
n
u
o
C

20

15

30.0%

10

5

10.0%

9.0%

8.0%
6.0%

5.0%
3.0%

2.0%

1.0%

0
10-20

21-25

1.0%

26-35

1.0%

Above

age of the respondent

If we see the graph then we find that age group 21-25 is more potential
customer and company should focus on them and provide them better taste,
quality according their preferences.
Brand preferred by the respondent * demanded brand Available in the
Market

87
Symmetric Measures
As
sump.
Std.
Error
Value
Interval by

Pearson's R

Interval
Ordinal by

Spearman

Ordinal
Correlation
N of Valid Cases

Approx

Approx.

(a)

. T(b)

Sig.

-.241

.093

-2.455

.016(c)

-.241

.095

-2.455

.016(c)

100

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

88
Bar Chart
Demanded brand
Available in the
Market

30

yes
25

No

t
n
u
o
C

20

15

29.0%
23.0%

10

22.0%

13.0%

5

10.0%

3.0%

0
PepsiCo

Coke

Others

Brand prefered by the respondent

If we see the graph then we find that coke brand is more easily available
than Pepsi it means there is some fault in
distribution channel and company should find that
and make available their brand at every retailers
shop.

89
COMPRISION STUDY OF PEPSI AND COKE
SERVICE

COKE
42%
PEPSI
58%

90
COKE
44%
PEPSI
56%

91
CONSUMPTION PATTERN OF PEPSI

600 ML

2 LT
17%

200 ML
30%

200 ML
300 ML

16%

600 ML
2 LT

300 ML
47%

90
80
70
60
50
40
30
20
10
0

East
West
North

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

ANALYSIS OF FINDINGS AND
OBSERVATIONS:

92
The main objective of the company is to increase the brand preference
and market share so any information material form this point of view had to
be take into account along with the formats provided by the company for
predefined information recording and analysis of those recordings and
present the information in an organize and systematic manner in a condensed
form reflecting the actual position of the market.
The information had to be recorded in the format along with the
relevant information as per the objectives of the research and an analysis of
that information had to be made and present them in an understandable
format so that immediate inferences can be drawn. Generally those
information had to be presented in percentages and the other findings and
observations had to be evaluated and a list of findings had to be arranged in
order of their seriousness and areas of serious concern along with the outlet
details.
After the analysis sheets and formats have been surrendered to the
C.E’s after analysis by the trainees it was further analyzed and evaluate by
him and a brief analysis was made each day of the daily report. The CE’s
further forwarded these reports after retaining the reference copy, to MDC
for further review and reference.

SWOT ANALYSIS

93
STRENGTHS
• Pepsi is a well-established co., so it has a good reputation in the market.
• Advertising of Pepsi is much more aggressive than Coke.
• Backed by huge promotion at national & international level.
• Lot of SGA’s provided in the market.
. Marketers are aggressive to solve The problem
Marketing channel is more strong compression coke

WEAKNESSES
• Non-fulfillment of commitments on time, made to shopkeepers.
• Incompetent salesman who do not give the schemes in the market
regularly.
• Unavailability of various demanded flavors like Mountain Dew &
Mirinda, Lemon.
• Not proper control over distribution network.
• Lack of Knowledge about the product.

OPPURTUNITIES
94
• May tie up or liaison with major showrooms, computer centers &
restaurant.
• Huge publicity of Mountain Dew, Lemon Miranda /Slice has created a lot
of demand.
• Company has brand equity in the eyes of customers, so its new products
can easily penetrates in the market.
• Untapped market.
THREATS
• Threat of competitors new brand entry in the market in near future.
• Restrictions made by Govt. agencies that soft drinks are harmful & nonnutritive.
• Natural juice are now available whose price are less or same as soft
drinks.

95
CONCLUSION

96
CONCLUSION

1. After visiting nearly 200 outlets I found that Pepsi & its Brands is not
doing a good job in Greater Noida Region. It is clear that Pepsi (58%)
has lagging Coke (42%) in the soft drink market in Greater Noida region.
If we compare it with Signage or display material than Pepsi has an edge
over coke.
2. At this time it is solely depends on the retailer which brand he offers to
the consumer? Although the company has been unable to satisfy the
retailers. The company must take immediate steps in order to resolve its
disputes with these retailers.
3. It was also found that the schemes that are brought up in the market by
Pepsi & Coke after every couple of day is not making any net effect on
the sale of Cola, whereas one is cannibalizing others market only.
4. It was also seen that Pepsi brand is better sold than coke. But it is
Thumsup, which is making the major difference in the market.
5. The sale in age wise section, it was found that 200ml is sold in all the age
groups with same frequency but 300ml is sold mostly in 16 to 45yr. of
age group where as CAN is sold in hi younger generation only. Finally
2lit. Are used only for family or party purpose.
6. It also seen shopkeeper does not have correct information about the
schemes which company made for their benefit. It’s necessary that they
should get all information as soon as so, that they use those benefit. It also
beneficial to encourage new shopkeeper.

97
LIMITATIONS

98
LIMITATIONS
• Findings are based on the views expressed by the consumers. So it may
suffer from biased prejudices.
• Weather conditions were not favorable.
• Some of the respondents were not co-operative & many seem to be
having no interest.
• The study has not been intended on a very large scale, have the
possibility of errors, which cannot be ruled out.
• Time limitations.
• Area was specified.
• It is extremely difficult to persuade retailer to respond to questionnaire.
• The retailer knows us as people from Pepsi there by the responses could
have been biased.
• I had lack of knowledge about the product of the local market.
• The company does not provide any financial assistance.
• The time allowed for the project was very short (8 weeks). It was
impossible to study deeply in that short period.
• There was the staying place hearer to local market.

.

99
RECOMMENDATIONS

100
RECOMMENDATIONS:-

1. PEPSI, the choice of Generation next is not providing the first choice of
young generation. A young generation wants something strong in cold
drinks & thus prefers Thumsup. Pepsi should come out with some extra
strong taste to catch up maximum young generation & to become exactly
Generation Next drink. These days younger generation is looks to prefer
Mountain Dew for thrill , which having good sign for pepsi Brand.
2. Company should appoint competent & honest salesman so that they could
provide schemes to the entire retailer’s & cover their full route.
3. It is often seen that some salesman do not intimate schemes to the retailer
& few of the retailers complained about it. So there should be frequent visits
of Customer Executives to their respective areas to keep the shopkeepers
benefited with various schemes.
4. Delay in starting of supply vans from respective depot should be checked
& a proper time register should be maintained.
5. Most of the retailers are complaining about non-fulfillment of
commitments regarding their sampling. Company should make sure that the
retailers get the sampling on time so that they are satisfied.
6. Most of the retailers are complaining about there dissatisfaction But not
proper steps taken to resolve those problem. Marketing Management should
sort some solutions to this major problem of replacing burst bottles.
7. All bottle should be supply in market systematically according to there
batches so that bottle should not be expire before selling to customer. These
should also be checked at the time of issue of goods from the distributor’s
godown to the respective routes.
8. Company should try to give some credit facility to the distributors so that
they get motivated because most of the time shopkeeper looking for credit.

101
9. Credit facility for retailers should be provided to increase the sales in
retail area.
10. Proper feedback system should be developed by ensuring regular visits
& check randomly at the various outlets.

102
BIBLIOGRAPHY

WEBSITES:
•

www.pepsi.com

•

www.pepsico.com

• www.jaipuriagroup.com
• www.rkjworld.com

BOOKS:
• Marketing Management- Radha Swami/ Nam kumari
• Research Methodology-C.R.Kothari
• Principles of Marketing-P. Kotler & Armstrong

NEWS PAPERS:
• The Times Of India
• The Economics Times
•

Hindustan Times

•

Business Today (July edition)
103
ANNEXURES

104
LIST OF ANNEXURES

• QUESTIONNAIRE
Questionnaire related to academic purpose, which is prepared to take
feedback from retailers.
Name of outlet

-

Address

-

Contact person with phone noType of outlet:Glossary, kiosk, provision store, eatery, other.
• Present share of your outlet
Pepsi

Coke

• You are interested to sale
Pepsi

Coke

Reason:• Salesman ‘s behavior
• What are demands of various packs of Pepsi
Pack

Demand in %

200ml
250/300ml

105
500ml
1000ml
2000ml
• Demand of different customer group
Group

Pepsi

Coke

Male

_____

_____

Female

_____

_____

Children
• Do you get the delivery at right time?
Yes

No

• Are you happy with companies’ distribution channel?
Yes

No

• Which of the company you feel have better distribution network?
Coke Pepsi Others • Do you get the benefits of daily schemes launched by the company?
Yes

No

• Do you receive the ordered quantity?

106
Yes

No

• Do you want Salesman to be changed at regular intervals?
Yes

No

• Companies’ Officers visit time to time?
Yes

No

• Which flavor is more demanded?
Pepsi

-

Mirinda-Orange Mirinda-Lime

-

Mountain Dew 7UP

-

Slice

-

• Is company responsive to your complaints?
Yes/No
• The cooling machine is :Your own / Pepsi’s / Coke’s
• Is any survey done by other soft drink company?
Yes/No
• Are you satisfied with the brands of Pepsi?

107
Yes / No
• Do you get proper scheme at right time?
Yes / No
• Does coke offer better then Pepsi
Yes / No
• How many times delivery van comes?
Ones in a day

-

In alternate days Once in a week Any other, please specify • Your recommendations about Pepsi Company?
• Any suggestion

108
109

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Pepsi hajipur

  • 1. SUMMER TRAINING PROJECT REPORT ON DISTRIBUTION STRATEGY OF PEPSI VARUN BEVERAGES LTD PEPSICO (hajipur) Submitted for the partial fulfillment of the requirement for the award Of IIMT MANAGEMENT COLLEGE GANGA NAGER MEERUT. (2011-2013) UNDER THE GUIDENCE OF :- SUBMITTED BY :- Dr. Prashant ghosh (Director ) sonu kumar. MBA 3rd symester +919808470496 1
  • 2. CONTENT PAGE NO. Project Detail 1 Certificate 2 Preface 3 Acknowledgement 4 Observations 5 Executive Summary 6 Introduction 7 to 9 Company Profile 10 to 17 Overview PepsiCo 18 to 19 PepsiCo Overcame Competition 20 to 24 Business Segment 25 to 35 Key Element of Trade 36 to 43 Promotion 44 to 47 Distribution Strategy 48 to 54 Research Methodology 55 to 56 Data Analysis From Retailer and Distributor 57 to 91 Analysis of Finding and Observation 92 SWOT Analysis 93 to 94 Conclusion 95 to 96 Limitation 97 to 98 Recommendation 99 to 101 Bibliography Annexure 102 103 to 108 2
  • 3. TO WHOM IT MAY CONCERN This is to certify that …………………………………. student of MBA course (2011-2013) IIMT MANAGEMENT COLLEGE with dual specialization in “MARKETING & HR” has satisfactorily completed the summer research project on “DISTRIBUTION STRATEGY OF PEPSI”. This study is done under the guidance of the undersigned for partial fulfillment for the award of MBA. I wisher all the best for bright future ahead. Mentor:………………………… PREFACE 3
  • 4. Marketing plays import role in today’s business scenario in consumer product Company, there is such a high competition in the market. Summer project in MBA program is providing job experience. In The summer program we gain academic knowledge as well as corporate culture. The emphasis in the project is providing the study and an insight into Indian FMCG Business Scenario. The Summer Project is designed to provide participation of MBA program as on the job experience. This has given a chance to try and apply the academic knowledge and gain insight into corporate culture. This helps in developing decision-making abilities and emphasizes on active participation by the student. We undertook our Project in Varun Beverages, a leading Bottler and Marketing partner of the Pepsi Foods. During the training, we had worked on the project “Distribution strategy of PEPSI in HAJIPUR BIHAR.” We gained valuable experience & knowledge during the survey. The Project consists of our findings customer behave relate goods market search after data analysis & then SWOT analysis & conclusions were drawn and finally recommendations were put forward. ACKNOWLEDGEMENT 4
  • 5. I owe my gratitude to many people who helped and supported me during the entire Summer Training. My sincere thanks to Mr.Prashant Dev Yadav the Guide of the project, for initiating and guiding the project with attention and care. He/ She have always been available for me to put me on track from time to time to bring the project at its present form. My deep sense of gratitude is due to Mr. Ashvani Sharma, Mr. Amit Sharma (Marketing Manager , Senior Customer Executive) Of Varun Beverages Ltd. HAJIPUR BIHAR. for allowing me to carry out the Summer Internship and this Project at the organization and to be constantly available to me for the period, for guidance. He/ She also helped me to see the subject of study in its proper perspective. Thanks and appreciation is also due to the officials, employees and respondents of Varun Beverages Ltd. Surajpur, Greater Noida (U.P), for their support.I also thank my Institution and my faculty members without whom this project would have been a distant reality. Signature (SONU KUMAR) Place: HAJIPUR BIHAR Date: 5
  • 6. Observations:• To collect order from each and every outlet. • To check visi-cooler with 100% purity. • To see is the soft drink is in Brand Order. • To see every outlet, is the soft drink present in display rack. • To see every outlet visi- cooler will present in prime location or not. • To visit every outlet in regular basis. • To go every outlet and listen the problems of retailer and shopkeeper related to visi- cooler and soft drink which is to be noted in complaint diary. • To see each that each and every outlet worked in better condition. • To see as a Market developer (M.D) every outlet full fills in terms and conditions with visi-Cooler. • To see as a Market developer (M.D.) if any outlet will not selling your product than you asked why you are not selling my product. Then you give advice to outlet. 6
  • 7. EXECUTIVE SUMMARY The distribution network of PEPSI is well known for its efficiency but company constantly strives for the betterment of their distribution network system. Emphasis of our study was to focus on the customer of company i.e., the retailers. The Retail Mapping of Greater Noida is an integral step for the assessment, development and betterment of this system. The distribution system not only comprises the movement of the products but also incorporates the merchandising of the product, which is very broad in its purview. The project incorporates the analysis of the perform of PEPSI and probing into opportunities of increasing the market share in Greater Noida. The entire process had to be in an organized manner in order to deliver meaningful results for the purpose of decision-making. The project was that of market research with surveys and observations as its major phases with the objective of gathering of all important information material for strengthening the position of PEPSI in Greater Noida. PEPSI boasts of having the maximum market share in the beverage segment in Greater Noida and is in constant process for the betterment of its product performance and customer as well retailer’s satisfaction. 7
  • 8. INTRODUCTION Modern age is full of competition. Today only way of success is your continuous efforts towards the growing market needs and in satisfying them. It is the marketer job to know what the market speaks i.e. the ever changing needs of the customer through market research & adopt them fruitfully. It is must for all the companies to make policies according to the customers and the govt. Today to succeed for any organization has to target its customer needs, to create a culture in the organization i.e. market conscious & responsive to customer needs. Soft drinks industry has become big business in India in recent years. The soft drink business under went major change with the entry of PEPSI and re-entry of COCA-COLA in India in the late 80s when Parley with brands like Thums up, Limca & Gold spot was a clear leader. Coca-Cola took up the product line of parley in 1993-94; today both brands are the Indians favorite soft drinks. 8
  • 9. PepsiCo Inc. Type Public Traded as NYSE: PEP S&P 500 Component Industry Foods, Beverages Founded North Carolina, U.S. (1965) Founder(s) Donald Kendall, Herman Lay Headquarters Purchase, New York, U.S. 9
  • 10. Area served Worldwide Key people Indra Nooyi (Chairman & CEO)[1] Products See list of PepsiCo products Revenue US$ 66.504 billion (2011)[2] Operating income US$ 9.633 billion (2011)[2] Net income US$ 6.462 billion (2011)[2] Total assets US$ 72.882 billion (2011)[2] Total equity US$ 20.899 billion (2011)[2] Employees 297,000 (2011)[2] Divisions PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo Europe; PepsiCo Asia, Middle East & Africa Subsidiaries List of subsidiaries Website PepsiCo.com 10
  • 11. COMPANY PROFILE-PEPSI CO. (US) COMPANY PROFILE-PEPSI CO. (US) PepsiCo is a world leader in convenient foods and beverages, with revenues of about $66.50 billion, over 2, 97,000 employees and total equity $20.899 billion. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of 11
  • 12. Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (Introduced by Tip Corporation in 1948). Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rolled Gold brand pretzels (acquired 1961). PepsiCo is the world leader in the food chain business. It consists of many companies amongst which the prominent one is Pepsi cola, frito lay, Pepsi food international, pizza hut, and KFC and taco bell. The group is presently into three most profitable businesses namely, beverages, snack foods and restaurants. It has scores of big brand available in nearly 150 countries across the globe. The beverages segment primarily market Pepsi diet, mountain dew and other brands worldwide and 7UP outside the U.S. market. They are positioned in close competition with Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit from international operation while same figure of Pepsi co. stand at 6%, the segment is also in the bottling plants and distribution facilities. The restaurant segment primarily consists of the operations of the worldwide pizza hut, Taco Bell and KFC. Long time no.2 player in the cola wars, Pepsi co. is widening the play field, over the last years; the company has invested more than $2billion in its worldwide operations. When Coca-Cola changed its formula in 1985, Pepsi stepped up its competition with its long time archival claiming victory in the cola wars. Coke and Pepsi expanded their rivalry to tea in 1991 when Pepsi formed a venture with #1 Lipton in response to coke’s announced venture with nestle (Nestea) it has won over 30% of the ready to drink tea market, a part of the so called "new age” beverages segment. 12
  • 13. The beverage industry has witness the phenomenal growth over the last few years necessitating capacity increase and builds up of commensurate infrastructure to meet the business growth, which is accordingly matched. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. PEPSI – THE INDIAN EXPERINCES • Pepsi is one of the most well known brands in the world today available in over 200 countries. The company has an extremely positive outlook for India. "Outside North America two of our largest and fastest growing businesses are in India and China, which include more than a third of the world’s population." (PepsiCo’s annual report, 1999) • This reflects that India holds a central position in Pepsi’s corporate strategy. India is a key market for PepsiCo, and at the same time the company has added value to Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three focus areas – Soft drink concentrate, Snack foods and Vegetable and Food processing • Faced with the existing policy framework at the time, the company entered the Indian market through a joint venture with Voltas and Punjab Agro Industries. With the introduction of the liberalization policies since 1991, Pepsi took complete control of its operations. The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flown in • One of PepsiCo’s key strategies was to develop a completely local management team. Pepsi has 19 company owned factories while their Indian bottling partners own 21 13
  • 14. The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official about it’ immediately ring a bell- it’s got to be Pepsi. The advertisement tag ‘yehi hai right choice baby’ was the first ‘Hinglish’ slogan ever used in the in the Indian market. This slogan proved to be the best suited one for Pepsi and it was a mega hit and at that moment of time. Pepsi in a short span of its operations in India has found a place in the hearts and minds of the Indian consumers. The success has primarily been due to the innovative and passionate Indian team, which has been built over the years. Pepsi is a trendsetter managed and run by Indians, where important decisions are taken locally. Pepsi started its operations in India in 1989 and since then PepsiCo has set up a fully integrated operation in India viz. Manufacturing, Research & Development, Marketing, Distribution and Franchising- covering fruit/vegetable processing, Exports, and Snack Foods & Beverages. In the mean time Pizza Hut and Frito Lay’s are the examples in this regard only Pepsi has 40 bottling plants in India, out of which 16 are company owned and 24 are owned by Indian franchisees. One of the major players in franchisee is RKJ Group. The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra. It has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India. This group has brought name and fame to the Pepsi as in all this regions Pepsi is at the commanding position and in the mean this group has diversified itself into ice cream, suiting and shirting’s, restaurants, beer plant in Mauritius & edible oil plant in Sri Lanka. 14
  • 15. COMPANY PROFILE-JAIPURIA GROUP: IN INDIA With a Legacy of decades in the industrial arena, the Jaipuria Group of Companies now stands at the one thousand five hundred Crore marks. The group boasts of its several world-class business arenas like those of Textiles, Bottling, education, and information technology, Food Chain and Retailing, apart from numerous other business segments JAIPURIA GROUP is an Rs.1500 Crore, family controlled, reputed business house with over a century of operations in diversified fields. The group as on today can boast of expertise and leadership in the fields of food and beverages, textiles and real estate development with varied interests in a wide Range of products and services. The Jaipuria Group under the leadership of the three brothers SK Jaipuria, RK Jaipuria and CK Jaipuria has today become one of the leading business houses of the country. The following are the major areas of operations of the Jaipuria Group: 15
  • 16. • • • • • Food and Beverages Textiles Information Technology Real Estate Education It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Our services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to expertise and leadership in the fields of education, food and beverages. The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only. Varun Beverages Ltd. is the flagship company of the group. The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 27 Pizza Hut Restaurants under its company. We diversified into education by opening our first school in Gurgaon under management of Delhi Public School Society. The schools of the group are run under a Registered Trust namely Champa Devi Jaipuria Charitable Trust. Companies are medium sized, professionally managed, unlisted and closely held between Indian Promoters and foreign collaborators. The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of 16
  • 17. the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company. Vision of the Company: BEING THE BEST IN EVERYTHING WE TOUCH AND HANDLE. Mission of the Company: Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions. MAIN CREDENTIALS 1. VARUN BEVERAGES LIMITED received" GOLD STANDARD AWARD" for the production and quality control for the year 1996-97. 2. Jaipuria group was adjudged “Best Bottler “out of more than 2000 bottles all over the world for the year 1996-97. 3. In 2011, The Brand Trust Report in India included Pepsi in the list of the most trusted brands of the country. 17
  • 18. PepsiCo – The Parent Company PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's principal businesses include: • • • • • Frito-Lay snacks Pepsi-Cola beverages Gatorade sports drinks Tropicana juices Quaker Foods PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the world’s fifth-largest food and beverage company, with 15 brands – each generating more than $1 billion in annual retail sales. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people. Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo, Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses in the United States and Canada. 18
  • 19. Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one-third of total soft drink sales in the United States. Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina, which is the number one brand of bottled water in the United States, Dole single-serve juices and Sobs, which offers a wide range of drinks with herbal ingredients. The company also makes and markets North America's best-selling, ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively. Overview – PepsiCo The PepsiCo challenge (to keep up with archrival The Coca-Cola Company) never ends for the world's #2 carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. It owns Frito-Lay, the world's #1 maker of snacks such as corn chips (Doritos, Fritos) and potato chips (Lay's, Ruffles). Cola is not the company's only beverage: PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices (licensed) and Lipton ready-to-drink tea (licensed from Unilever). Its Quaker Foods division offers breakfast cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). Wal-Mart is PepsiCo's largest customer, accounts for 9% of sales. PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks and juice sales help to quench the company's thirst for bottom-line growth. Frito-Lay's salty snacks rule the US market; the snack division accounts for about one-third of company sales. The company announced a major restructuring in 2007, splitting its two business units (Pepsi-Cola North America and PepsiCo International) into three: one for US food, a second for US drinks, and a third for food and drinks abroad. CEO Indra Nooyi said that due to the company's healthy growth in recent years, PepsiCo is approaching a size that can be better managed as three units rather than two. 19
  • 20. The split looks like this: PepsiCo Americas Foods includes Frito-Lay North America, Quaker, and the Latin American food and snack businesses; PepsiCo Americas Beverages includes North American beverage sales, including Gatorade and Tropicana; and PepsiCo International includes business in the UK, the rest of Europe, Asia, the Middle East, and Africa. With a saturated soft-drink market, the company continues to try new iterations: In 2007 the company introduced its first vitamin-enhanced water, called Aquafina Alive. It signed a licensing agreement with Ben & Jerry's in 2006 for the sale of Ben & Jerry's milkshakes in the US, as well as a deal with Starbucks for the distribution of the coffee purveyor's Ethos water brand. Hot on the heels of Coke's introduction of Blak, in 2006 Pepsi launched a coffee-flavored cola, named, Pepsi Max Cino, in the UK. Venturing further into the non-cola category, PepsiCo acquired sparkling juice companies IZZE and Naked Juice in 2006. It also began selling Fuelosophy, a smoothie drink, at organic grocery store chain Whole Foods, and struck a deal to develop products with juice maker Ocean Spray Cranberries. Bowing to the public's growing concern about childhood obesity, in 2006 Pepsi, along with Coca-Cola, Cadbury Schweppes, and the American Beverage Association agreed to sell only water, unsweetened juice, and lowfat milk to public elementary and middle schools in the US. As for high schools, the agreement calls for no sugary sodas to be sold and one-half of the offered drinks to be water, diet sodas, lemonade, or iced tea. The agreement was facilitated by former president Bill Clinton. CEO Steve Reinemund stepped down as CEO in 2006 in order to spend more time with his family. His replacement was Indra Nooyi, the company's president and CFO. Indian-born Nooyi, the 11th female CEO of a FORTUNE 500 company, has been instrumental in strategic decisions at the company, such as the acquisition of Tropicana and merger with Quaker Oats. Shortly after her appointment, Nooyi restructured the top level of power at the company. She appointed John Compton, previously head of the QuakerTropicana-Gatorade unit, to the newly created position of CEO for PepsiCo North America, reporting directly to her. 20
  • 21. How PepsiCo overcame Competition How PepsiCo outgunned Coke: Losing the cola wars was the best thing that ever happened to Pepsi while Coke was celebrating; PEPSI took over a much larger market. Pepsi beat Coke in December for the first time in their 108-year rivalry, surpassing its nemesis in market capitalization. The great irony of Pepsi's rise is this: It has never sold more soda than Coke, even today. "Pepsi's been on fire," notes Robert van Brugge, beverage analyst with Sanford 55Bernstein. Over the past five years its stock has risen more than a third, while Coke's has sunk 30 percent. Even ten years ago, it was easy to write off PepsiCo (Research) as the loser in the cola wars against Coke (Research): the proof was everywhere. The company's profits trailed those of its rival in Atlanta by 47 percent. Its value in the stock market was less than half of Coca-Cola's. Coke's CEO at the time, Roberto Goizueta, was so sure of his company's dominance that he practically dismissed Pepsi, telling FORTUNE, "As they've become less relevant, I don't need to look at them very much anymore." PepsiCo turned its cola Waterloo into an opportunity to retrench, regroup, and ultimately outflank its old foe. Losing the cola wars, it turns out, was the best thing that ever happened to Pepsi. It prompted Pepsi's leaders to look outside the confines of their battle with Coke. A decade ago, Coke offered investors a compelling story: a recessionresistant product inexpensive enough that consumers would buy it in good times and bad, but valued enough that they would willingly pay an extra nickel or so above what no-name brands charged. What Coke investors didn't envision was that an emerging preference for other soft beverages --water, sports drinks -- would fracture demand. Nor did they see that the business strengths that once applied to cola would take hold across a broadened soft drink and snack-food market -- a market that Pepsi, and not Coke, dominated. 21
  • 22. "They were the first to recognize that the consumer was moving to noncarbonated products, and they innovated aggressively," observes Gary Hemphill of Beverage Marketing. PepsiCo embraced bottled water and sports drinks much earlier than its rival. Pepsi's Aquafina is the No. 1 water brand, with Coke's Dasani trailing; in sports drinks, Pepsi's Gatorade owns 80 percent of the market while Coke's PowerAde has 15 percent. Throughout the past five years under CEO Steve Reinemund, the company has deftly moved with every shift in consumer tastes. "He's thinking about what the products should look like in the future," says Victor Dzau, a director of PepsiCo. 22
  • 23. SCA’s Three major sustainable competitive advantages give PepsiCo a competitive edge as we operate in the global marketplace: • Big muscular brands; • Proven ability to innovate and create differentiated products; and • Powerful go to market systems. Build and Born SCA’s: Hyper competition; • • • • Cost and Quality. Timing and know how. Strongholds. Deep pockets. Strategic Competitive Advantage Exploitation Profits from a sustained competitive advantage Launch Counterattack Traditional View Time Firm has already moved to advantage 2 Profits from a series of actions Exploitation Counterattack Hypercompetition Launch Time 23
  • 24. Fig: 1Coke: 1886; Pepsi: 1893. Pepsi Coke Price / Ounce Price / Ounce 1933: Pepsi struggling to stave off bankruptcy. Dropped price of its 10c, 12 oz. bottle to 5c, making it a better value. Ad jingle “twice as much for a nickel” better known in the US than the Star Spangled Banner. Perceived Quality Coke Pepsi Perceived Quality Fig.2 Pepsi keeps price advantage through 60s and 70s, when Pepsi charged its bottlers 20% less for its concentrate. Pepsi Coke Perceived Quality Price / Ounce Price / Ounce With rising ingredient costs, Pepsi could no longer offer twice as much for the same price. So, it raised price to Coke’s level giving it a war chest to fuel an aggressive ad campaign. Battle shifted from Price to Quality, with Pepsi targeting the youth. Coke Pepsi 24 Perceived Quality
  • 25. What followed was the Pepsi Challenge & “Real Thing” Coke ads Fig.4 Pepsi Coke Youth & Middle Class Segments Perceived Quality Price / Ounce Price / Ounce Fig.3 First move: Pepsi Challenge 2nd move: Coke’s Ad war Perceived Quality Perceived quality caught up. Deeper pocketed and lower cost Coke initiated a price war in selective markets where Pepsi was weak in the 70s. Pepsi responded with its discounts and by the end of the 80s, 50% of food store sales were on discount. Other companies moved into the lower left quadrant of. 25
  • 26. BUSINESS SEGMENTS The RKJ Group is divided into three-business segments- Beverage, Food and Education. It has a leading market position in each of its three business segments. Our balanced portfolio produced a solid business performance. Products and services, which look to the future, ensure that we will be well placed in growth markets. 26
  • 27. BEVERAGE INDUSTRY Indian Beverages industry’s size is Rs. 8000 Crore and it is dominated by two player’s viz. Pepsi & Coke only. This high profile industry has lot of potential for growth as per capita consumption in India is 8 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal. The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra. 27
  • 28. The group manufactures and markets carbonated and Non-Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavors and subbrands are Pepsi, Mirinda Orange, Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango, Evervess Soda and Aquafina. It has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India. In order to later to this increasing demand, new bottling plants are being set up at alwer, kosi, Jodhpur, Kathmandu and goa to produce400-600 bottles per minute, which would mainly cater to northern markets of India. And in future, they will also be used to manufacture fruits mince- based soft drinks Like slice and mangola. INGREDIENTS OF SOFT DRINK: In the United States, Pepsi is made with carbonated water, high fructose corn syrup, caramel color, sugar, Phosphoric acid, caffeine, citric acid and natural flavors. A can of Pepsi (12 fl ounces) has 41 grams of carbohydrates (all from sugar), 30 mg of sodium, 0 grams of fat, 0 grams of protein, 38 mg of caffeine and 150 calories. The caffeine-free Pepsi-Cola contains the same ingredients but without the caffeine. The original Pepsi-Cola recipe was available from documents filed with the court at the time that the Pepsi-Cola Company went bankrupt in 1929. The original formula contained neither cola nor caffeine. In August 2010, PepsiCo entered into a 4-year agreement with Senomyx for the development of artificial high-potency sweeteners for PepsiCo 28
  • 29. beverages. Under the contract, PepsiCo is paying $30 million to Senomyx for the research and future royalties on PepsiCo products sold using Senomyx technology. According to PepsiCo, PepsiCo's collaboration with Senomyx will focus on the discovery, development and commercialization of sweet enhancers, with the purpose of providing lower-calorie PepsiCo beverages. PepsiCo will have exclusive rights to the Senomyx sweet flavor ingredients developed through the collaboration. See also           Diet Pepsi Pepsi spokespersons Pepsi Max Big One (Roller coaster) Pepsi Orange Streak (Roller coaster) Pepsi Python (Roller coaster) Pepsi Billion Dollar Sweepstakes Mountain Dew AMP Energy Citrus Blast Pepsi Next We only use the finest ingredients to make Pepsi-Cola products. To guarantee our consumers consistent quality, each ingredient must pass our high standards, rigorous quality control tests and strict bottling procedures. Pepsi-Cola products contain natural flavors, including extracts of the kola nut ND flavor oils derived from natural sources such as citrus and other fruits. Caramel (made from corn sugar) adds color and flavor to our colas. Other ingredients add a refreshing taste: phosphoric acid in colas; citric acid and sodium citrate in Mountain Dew, Slice and Diet Pepsi. We also put a freshness date on every can and bottle. Soft drinks may lose some flavor over time so our freshness date tells consumers when the product is freshest and best tasting. Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel, which shows the number of calories and other nutrients per serving. There is essentially no fat in any Pepsi-Cola a product. The main ingredients found in 29
  • 30. Pepsi-Cola products include carbonated water, carbohydrates, sugar, sodium, potassium and caffeine. For a complete breakdown by ingredients by product, see our product information for Pepsi, Diet Pepsi, Mountain Dew, Slice and Aquafina. Ascorbic Acid Another name for Ascorbic Acid is Vitamin C the Ascorbic Acid used in our carbonated soft drinks functions as an antioxidant to protect the flavors, color, and taste. In some beverages we also add it to provide the nutritive value found in Vitamin C. Aspartame Aspartame is a sugar substitute used in our diet beverages and many other food products. Aspartame is made of the same building blocks as protein, so it is considered a "nutritive sweetener," but the very small amounts used in diet drinks contribute no calories. Blue1 Blue 1 is a FDA-approved food coloring used in a variety of products such as jellies, condiments, puddings, and beverages. Brominated Vegetable Oil (BVO) Brominated vegetable oil has been used by the soft drink industry since 1931. It is a widely used food additive that has been extensively tested and approved by the U.S. Food & Drug Administration. Brominated vegetable oil is derived from soybean oil that has been modified in order to keep the flavoring oils well blended. Caffeine 30
  • 31. Caffeine provides a characteristic flavor to soft drinks. Caffeine is naturally found in coffee, tea and chocolate. For comparison, an 8-oz. cup of brewed coffee can have from 85-120 mg of caffeine on average, while an 8-oz. serving of Pepsi contains about 25 mg of caffeine. An 8-oz. cup of coffee therefore contains three to four times as much caffeine found in a caffeinated colon. There is no caffeine in Caffeine Free Pepsi, Caffeine Free Diet Pepsi, Aquafina, Slice, Mountain Dew or Mirinda. Caramel Caramel is a flavoring that is added to some of our beverages. Citric Acid Citric Acid can be found in citrus fruits such as lemons and oranges. Citric acid is used to bring out the flavor of other ingredients and imparts a tang or tartness to beverages. Citric acid is not Vitamin C. the same fruits that have citric acid often have Vitamin C but the technical name for Vitamin C is ascorbic acid. Gum Arabic Gum Arabic is a purified natural vegetable gum obtained from the acacia tree and is used in keeping our carbonated beverages well blended. High Fructose Corn Syrup High Fructose Corn Syrup (HFCS) is a sugar derived from corn and provides sweetness and taste to our beverages. HFCS has the same sweetness as table sugar (sucrose) and has almost the identical composition of fructose and glucose. Natural Flavorings 31
  • 32. Natural Flavorings are flavoring ingredients that are the essences or extracts derived from natural plant sources. Natural Flavorings are what gives a product its distinctive flavor and taste. Pepsi products are the only products with these distinct flavor blends, which are considered part of our secret formula. The term natural flavor is defined by the food and drug administration and all of our natural flavorings meet this definition. Phosphoric Acid A small amount of phosphoric acid is added to our soft drinks. However, it is greatly diluted and is fully approved by the U.S. Food and Drug Administration for use in soft drinks. Phosphoric acid provides tartness, essential to a well-rounded flavor. Phosphorus, like calcium, is an essential mineral in bone. It is widely distributed in the food supply, including fish, milk, meat, eggs and cereal grains. Potassium Potassium in Pepsi-Cola products may come from water or as part of certain ingredients. For example, potassium may be combined with benzoic acid, which helps prevent spoilage and flavor changes. Potassium is an electrolyte that helps meet the mineral needs of active people. Quillaia Quillaia Extract is a purified extract derived from the bark of the Quillaia tree. It is carefully selected based on its characteristics. It is cooked, filtered and pasteurized. It is FDA-approved, non-hazardous. Quillaia is found in some of our frozen drinks. Red 40 Red 40 is a FDA-approved food coloring used in beverages. 32
  • 33. Sodium All of our products are "low sodium" and contains less than 110 mg per eight-fluid-ounce serving. A number of beverages have less than 35-mg sodium per serving, so they are considered "very low sodium" products. Sugar Regular soft drinks and sports drinks are sweetened with sugar. There are many types of sugar available today. In soft drinks and sports drinks, the sugar is primarily high fructose corn syrup, which comes from corn. Total Carbohydrates Total carbohydrates include the sugars and any carbohydrate-like parts of ingredients, such as organic acids. Although diet drinks may have no sugar, they may contain more than half a gram of carbohydrate. Yellow5 Yellow 5 is a FDA-approved food coloring. Used since 1916, it is found in a variety of products such as skim milk, yogurt and macaroni and cheese. 33
  • 34. FOOD INDUSTRY The last decade has been a period of dynamic growth for non-alcoholic drinks and has witnessed completely new segment of the food market in India taking shape. Food market at stake in India is enormous. The food chain and the forces acting on the food chain are changing rapidly, and in a generally positive manner. India's sheer size and diversity are enough to make it an attractive market for nearly every major food, beverage and agribusiness company. A KSA Technopak study indicates that the fast food industry in India will be worth $1.27 billion by year 2005. To capitalize on the RKJ group’s significantly important relationship with Pepsi Foods, it decided to venture into food sector, which is second largest business for Pepsi all over the world. Fast food is the most happening thing across the world. The group became the first franchisee for Yum Restaurants International formerly PepsiCo Restaurants (India) Private Limited in India. It has exclusive franchise rights for Northern & Eastern India. Out of 56 operational Pizza Hut restaurants in the country 27 restaurants are owned and run by its company. All these restaurants are making good profits & are dominating the market. The name of business entity is Devyani International Private Limited. ICE CREAMS UNDER “CANDIA” BRAND The India ice creams and frozen desserts market forms part of the food industry. Ice creams and frozen desserts are convenience products, which are ideally suited to the emerging lifestyles and eating trends of Urban India. 34
  • 35. The RKJ group has its presence in the Ice Cream segment since 1991, when it started manufacturing and marketing Ice Cream under the brand name of “Gaylord” in the state of U.P. During 1996 it sold its brand to Brooke Bond and started supplying Ice Cream to Hindustan Lever as their Ice Cream souring plant. After working for 10 years in this field, during 2003 it has launched its own brand in technical and marketing collaboration with Candia of France. Advertisement and Add Concept:Advertisements are cost effective means to communicate messages and ideas to build brand preferences and awareness and it is one of the most important tools which a company uses to direct persuasive communication to directive buyers in public or to educated people to avoid hard drink and so on. The basic objective of advertising is sales promotion sales promotion expenditure have been increasing as a percent of budget expenditure annually and the growth is likely to continue in future. Our celebrities signed by the PepsiCo are as follows: For PepsiCo. Celebrities:• • • • • • • • • • Amitabh Bachchan Sharukh Khan Saif Ali Khan Fardeen Khan Kareena Kapoor Preeti Zinta Priyanka Chopara Kajol Rani Mukharjee Ranbeer Kapoor 35
  • 36. Cricketers:• • • • • • • • Sachin Tendulkar Saurav Ganguly Yuvraj Singh Harbhajan Singh Rahul Dravid Zaheer Khan Mohammad Kaif MS Dhoni (Captain Team India) Tennis Stars:• Leander Paes • Mahesh Bhupati Football Players:• Cyrus Broacha • Bhaichung Bhatia 36
  • 37. 37
  • 38. KEY ELEMENTS OF THE TRADE 1. JO DIKHTA HAI WAI BIKTA HAI: - This is a company slogan, it is to increase the visibility of the product, the company stresses more on increasing the number of outlets than on the volumes of sales. That is the reason of the company providing visibility courses to the shopkeepers. 2. A BOTTLE THAT IS CHILLED IS SOLD: - In the industry it is considered that a bottle is chilled or putting in cooling compartment is sold. That is the reason the policy providing triage’s come up because according to the contract the shopkeeper has to keep only & only Pepsi’s products in the visicooler. 3. A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI: - The competition is so strong between the two companies i.e. fighting is on for each bottle that is to be sold in the market. Competitive bidding goes on for each & every prestigious outlet in their region. Monopolizing entries & fat foods joint s is their first priority. 4. EMPTY KA HI KHEL HAI: - [Empty plays an important role]: - As discussed earlier the distribution points keeps on putting up distribution schemes for retailers i.e. like two bottles of solution free with the purchase of every one carat of solution. Now these schemes have timed well keeping minding the environmental conditions & schemes provided by the other company. These schemes are of twenty-four hours duration. If a scheme is launched & there is no empty in the market for refill, the whole effort goes in vain that is the reason is said ki sub empty ka khel hai. 38
  • 39. Products Availability of Pepsi Sl. Products 20 250 300 330 500 600 1000 1200 2000 No. 0 ml. ml. ml. ml. ml. ml. ml. ml. 1. 2. 3. 4. 5. Pepsi Pepsi diet Pepsi Gold Mirinda Mirinda ml    -   - -  -    - - -   - 6. 7. 8. 9. 10. 11. Lime M. Sorbet 7Up M. Dew Pepsi Can 7Up Can Mirinda   - -  -    -    - - -   - 12. Can M. Dew - - -  - - - - - 13. 14. 15. 16. 17. Can Diet Can Slice Aquafina Tropicana Everest  -  -   -  -    -  - - Lehar 39
  • 40. Products Availability of Coke:- Sl. Products No. 1. Coco-cola 200 250 300 330 600 1000 1200 1500 ml.  ml. - ml.  ml. - ml.  ml. - ml. - ml.  2. Thumps-Up  -  -  - -  3. Sprite  -  -  - -  4. Fanta  -  -  - -  5. Limca  -  -  - -  6. Maaza - -  -  - 7. Coca-cola Can - - -  - - - - 8. Thumps Up - - -  - - - - 9. Can Sprite Can - - -  - - - - 10. Fanta Can - - -  - - - - 11. Cole Diet - - -  - - - - 12. Kinely Soda - - - - -  -  -  40
  • 41. 13. Kinely 14. Fruit Juice NA - - - -  NA - - 120 2000 0 0 ml. ml. - ml. - Pepsi Products’ Price (in Rs.) List for Retailers Sl. Products 250 300 330 500 600 100 ml. No. 200 ml. ml. 1. 2. 3. 4. 5. Pepsi 166 Pepsi diet Pepsi Gold Mirinda 166 Mirinda 216 6. 7. 8. Lime M. Sorbet 7Up M. Dew - ml. ml. 216 214 - - 216 - - 214 - Can 9. Pepsi Can 10. 7Up Can 11. Mirinda - - - Can 12. M. Dew - - - 214 - 13. 14. 15. 16. Can Diet Can Slice Aquafina Tropicana - - 560 560 560 - - 500 530 - - - 560 - 454 - - - 530 454 - - ml. - - - - - - 560 - - - - - - 105 - - - - - 41
  • 42. 17. Everest - - - - - - - - - 120 2000 0 0 ml. ml. - ml. - Lehar Pepsi Products’ Price (in Rs.) List for Retailers Sl. Products 250 300 330 500 600 100 ml. No. 200 ml. ml. 1. 2. 3. 4. 5. Pepsi 168 Pepsi diet Pepsi Gold Mirinda 168 Mirinda 168 6. 7. 8. Lime M. Sorbet 7Up M. Dew - ml. ml. 214 214 - - 165 - - 214 - Can 9. Pepsi Can 10. 7Up Can 11. Mirinda - - - Can 12. M. Dew - - - 214 - 13. 14. 15. 16. Can Diet Can Slice Aquafina Tropicana - - ml. - 560 560 - 560 - - - - - 560 - 454 - - - 530 - - - 500 530 - - - - - - - 444 - - - - - - 105 - 550 - - - TYPE OF PACKS AVAILABLE :- 42
  • 43. QUANTITY RATES MRP/PCs 200ml (24b/s per crate) 10/- 168/- 300ml (24b/s per crate) 12/- 168/- 600ml (24b/s per peti) 27/- 216/- 2-liter (9b/s per peti) 59/- 500/- 200ml (24b/s per crate) slice 10/- 166/- 1000ml (12b/s per crate) slice 40/- 430/- 200ml (24PCspercrate) tetra slice 10/- 168/- 500ml (24b/spercrate) diet Pepsi 20/- 560/- 330ml (24PCs) diet Pepsi cane 25/- 454/- 330ml (24PCs) Pepsi cane 20/- 454/- 500ml (24PCs) pepsi café-chino 20/- 430/- SODA: Lehar Soda 300ml (24PCs per crate) 6/- 120/- Lehar Soda 600ml (24b/s per peti) 10/- 216/- WATER: Aquafina-1liter (12b/s per peti) 103/- 43
  • 44. Aquafina-2liter (12b/s per peti) 199/- A price generally depends upon the company. PRICING OF EMPTIES QUANTITY PRICE 200ml Rs.165 per crate 300ml Rs.214 per crate The Shell Cost Rs 100/- each Empty bottle Rs 6/- each PROMOTION: - 44
  • 45. The promotion budget is set by the Head Office and thereby is distributed among the different bottler’s all over the country on the basis of there past performances & requirements. Distribution Network in Greater Noida PEPSI FOODS LTD (Parent Co.) Greater Noida VARUN BEVERAGE LTD (Bottling Plant) Greater Noida Distributors Distributors C&F Distributors Fat Dealer (2) Fat Dealers (4) Fat Dealers (2) Retailers Retailers Retailers Retailers CONSUMERS Slogans 45
  • 46.                           1939–1950: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 1950–1957: "Any Weather is Pepsi Weather" 1957–1958: "Say Pepsi, Please" 1958–1960: "Don't be a Tramp, Buy a Can" Zane 1961–1964: "Now It's Pepsi for Those Who Think Young" (jingle sung by Joanie Sommers) 1964–1967: "Come Alive, You're in the Pepsi Generation" (jingle sung by Joanie Sommers) 1967–1969: "(Taste that beats the others cold) Pepsi Pours It On". 1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 1975–1977: "Buy a can 50p" (United Kingdom) 1977–1980: "Join the Pepsi People (Feeling Free)" 1980–1981: "Catch That Pepsi Spirit" (David Lucas, composer) 1981–1983: "Pepsi's got your taste for life" 1983: "Its cheaper than Coke!" 1983–1984: "Pepsi Now! Take the Challenge!" 1984–1991: "Pepsi. The Choice of a New Generation" (commercial with Michael Jackson and The Jacksons, featuring the Pepsi version of "Billie Jean", "Bad" and "Black or White". "Black of White"'s was promoting the Dangerous World Tour.) 1984–1988: "Diet Pepsi. The Choice of a New Generation" 1988–1989: "Diet Pepsi. The Taste That's Generations Ahead" 1989–1990: "Diet Pepsi. The Right One" 1989–1992: "Diet Pepsi. The Taste That Beats Diet Coke" 1986–1987: "We've Got the Taste" (commercial with Tina Turner) 1987–1990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi version of Bad) 1990–1991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet Pepsi) 1990–1991: "Yehi hai right choice Baby UH HUH" (Urdu, Hindi – meaning "This is the right choice Baby UH HUH") (Pakistan), (India) 1991–1992: "Gotta Have It"/"Chill Out" 1992:"The Choice Is Yours" 46
  • 47.                          1992–1993: "Be Young, Have Fun, Drink Pepsi" 1993–1994: "Right Now" (Van Halen song for the Crystal Pepsi advertisement) 1994–1995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz) 1995: "Nothing Else is a Pepsi" 1995–1996: "Drink Pepsi. Get Stuff." (Pepsi Stuff campaign) 1996:"Change The Script" 1996–1997: "Pepsi: There's nothing official about it" (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka) 1997–1998: "Generation Next" (with the Spice Girls) 1998–1999: "Its the cola" (100th anniversary commercial) 1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial with Britney Spears/commercial with Mary J. Blige) 1999–2006: "Yeh Dil Maange More!" (Hindi – meaning "This heart asks for more") (India) 2002: "Change the World" (Japan) 2003: "Its the Cola"/"Dare for More" (Pepsi Commercial) 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young" (Mary J. Blige) 2007–2008: "More Happy"/"Taste the once that's forever young" (Michael Alexander) 2000–present: "Pepsi ye pyaas heh badi" ((Urdu), ((Hindi)) meaning "There is a lot of thirst" (Pakistan)) ((India)) 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake) 2008: "Pepsi is #1" TV commercial (Luke Rosin) 2008–present: "Something For Everyone" 2009–present: "Refresh Everything"/"Every Generation Refreshes the World" 2009–present: "Yeh hai youngistaan meri jaan" (Hindi – meaning "This is our young country my baby") 2009–present: "My Pepsi My Way"(Pakistan) (India) 2009–present: "Refresca tu Mundo" (Spanish – meaning "Refresh your world") (Spanish Spoken countries in Latin America) 2009: "Joy It Forward" (Canada) 2010–present: "Every Pepsi Refreshes The World" 47
  • 48.              2010–present "Pepsi. Sarap Magbago." (Philippines – meaning "Its nice to change") 2010–2011 "Badal Do Zamana" (Urdu – meaning "Change The World" by CALL)(Pakistan) 2010–2011 "Love!" (Japan, for Pepsi Nex) 2010–present: "Pode ser bom, pode ser muito bom, pode ser Pepsi" (Can be good, can be very good, can be Pepsi) – Brazil and Portugal 2011–present: "Change the game" (India, Bangladesh & Pakistan for the 2011 Cricket World Cup) 2011–present "Dunya Hai Dil Walon Ki" (Pakistan-meaning World is For Lovers by Ali Zafar) 2011–present "Ici, c'est Pepsi" (Québec-meaning Here, it's pepsi) 2011–present "Go next!" (Japan, for Pepsi Next) 2011–present "Summer Time is Pepsi Time" 2011–present "Born in the Carolinas" 2012: "Where there's Pepsi, there's music" – used for the 2012 Super Bowl commercial featuring Melanie Amaro 2012 "Live For Now" 2012 Pepsi, Now “Change the Game”. 48
  • 49. DISTRIBUTION STRATEGIES A Company can choose any of the following distribution types: • Exclusive Distribution • Selective Distribution • Intensive Distribution “PEPSI” HAS STRATEGY. ADOPTED THE INTENSIVE DISTRIBUTION INTENSIVE DISTRIBUTION: A Strategy of intensive distribution is characterized by placing the goods or services in as many outlets as possible. When the consumer requires a great deal of location convenience, it is important to offer greater intensity of Distribution. This strategy is generally used for convenience items such as Tobacco, gasoline, and soap, snack foods & bubblegum. Manufactures are constantly tempted to move from exclusive or selective distribution to more intensive distribution to increase their coverage and sales and you could find Pepsi in nursing homes, confectionery shops, departmental stores; you name it & Pepsi is available there. 49
  • 50. DISTRIBUTION CHANNEL REDIFINED Pepsi has redefined distribution to strengthen their competitive advantage in the emerging consumer and market scenario. Their earlier focus was to drive wide availability and enable easy access to their brands for consumers. Now they seek to go well beyond this distribution paradigm. Their new approach is more holistic touching consumers in multiple ways at the point of purchase and more importantly, creating opportunities for customers to receive brand message and experience our brands. They are proactively addressing these emerging trends by approaching distribution and channels in a much broader way. They are shifting emphasis from mere reach or availability expansion to touching consumers with a 3way convergence- of product availability, brand communication and higher level of brand experience. They are thus going beyond delivering products and creating greater engagement and interaction around the purchasing experience. Product Availability Point Of Purchase Brand Communication Brand Experience Pepsi’s reinvention of distribution is built on an understanding of emerging consumer trends, the retail environment and the growth drivers of our brands. 50
  • 51. Pepsi’s distribution system is a key external resource. Normally it has taken years to build and cannot be easily changed. It ranks in importance with key internal resources such as manufacturing, research, engineering and field sales personals. It represents significant corporate commitment to set policies and practices that constitute the basic fabric on which is woven an extensive set of long run relationship. 51
  • 52. CHANNEL FUNCTION AND FLOWS Marketing channel perform the following functions• To gather the information about potential and current customers, and competitors. • To reach agreements on Price • To list orders with manufacturers. • They provide the successive storage and movement of physical products. It can be defined as backward and forward integration i.e. starting from supplier of the raw material to the end customer. The physical flow of Pepsi from its manufacturing unit at Kosi (Varun Beverages) to various retailers in Sahibabad is as follows- 52
  • 53. PRODUCT & PACK PROFILE PRODUCT: Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known are one of the largest FMCG market in the whole world with the total annual sales around $40 billion. This product is generally available in four kinds of packing. • • • • Glass Bottles Pet Bottles Cans Fountain rim FLAVORS: • • • • • • • Cola Orange Clear Lemon Cloudy Lemon Berry Ginger Mango Slice Out of these products the 70% of the sales of the company come from the Cola brand, which is the market leader in the most part of the country of these kinds of packaging in which the product is available make them 80% of the sales come from these bottles. The businesses of returnable bottles are very cumbersome and make the market very complex and demanding. 53
  • 54. Facilities Provided By The Customer To The Retailer 1. VISI COOLER • • • • • • • • • • • 65 Liter 110 Liter 120 Liter 165 Liter 200 Liter 210 Liter 220 Liter 300 Liter 320 Liter 330 Liter 500 Liter According to outlet nature, volume & investment of the outlet. 2. SCHEMES OF VOLUME PURCHASE • Cash discount • Card discount (sampling) 3. DISPLAY MATERIAL • • • • • • • Stickers Banners G.S. Boards D.P.S. Boards Racks Counters Umbrellas 54
  • 55. OBJECTIVE OF THE STUDY • To find out the problems faced by the channels of distribution. • To increase penetration in the market. • To find out availability of Pepsi & Coke in the outlets. • To see the distribution gap by which the product is selling. 55
  • 56. RESARCH METHODOLOGY Research in common refers to a search of knowledge. One can also define research as a scientific & systematic search for pertinent information of a specific topic. It is the pursuit of truth with the help of study observation, comparison & experiment. DEVELOPING RESARCH PLAN: After deciding the objective of marketing research the next step is deciding Research plan for gathering effective information related to this research project. The research consists of following steps, which are discussed subsequently. Research Design: Descriptive Research: In my market survey descriptive research process was carried out to describe the market characteristics, consumer profiles, distribution strategies, and market potential. Data Source: During project study I use both primary as well as secondary data source. For primary data collection I visited various retailers in Ghaziabad & for secondary data I went through Books, Journals & Internet. The information collected is relevant, correct & unbiased. Research Design: I followed survey technique for collecting the data. In market survey research approach. Here, I carried out information from retailers have carefully selected the instrument & methods of surveying like I have chosen personal contact methods because of higher response rate & meaningful responses this helped me to get the general feedback in Pepsi, etc. Reach Instrument: The research instrument used was EDS form. In which market information detail of each outlet should be filled in EDS form. For this I have visited 56
  • 57. each & every outlet & check all the brands & packs of Pepsi are available or not or which one is available in comparison with Coke & filled it in EDS forms. In my research process I have used closed ended & open-ended questionnaire where respondents could answer in their own manner. Through this I was able to extract information from the respondents about Pepsi’s products & the competitors. Sampling Plan: In designing the sampling plan following points were considered: Sampling Unit: It includes who is to be a surveyed retailer of Greater Noida. Sampling Size: I have surveyed about each & every outlet of the area specified to me so size would reach upto 700 retailers. Elementary Retailers: The geographical limit is the area of Greater Noida. Contact Method: In my research process, I have collected information through personal interview process with the help of EDS. Form given by the company because it is the most reliable & accurate method for collecting primary data. Through this, the analysis of body language & facial expressions can be made. Methods of data interpretation: In this market study I have used pie chart for data analysis & interpretation because pie chart is the easiest & comprehensive medium for presentation of data. Sampling unit is a single retailer’s outlet which may be:-provision store, stationery shop, eatery &kiosk. The universe studied is the sum of the retailers in the Greater Noida area. 57
  • 58. DATA ANALYSIS FROM RETAILERS &DISTRIBUTORS PERSPECTIVE: Frequencies PepsiCo having good distrbution channel Strongly agree Agree Can't Say Strongly Disagree Dis Agree 6.67% 3.67% 18.67% 7.0% 64.0% If we see the chart then we find that out of 100% respondent 64% are agree that PepsiCo have good distribution channel and only 18.67% are strongly agree, the data shows that company should focus on their distribution 58
  • 59. channel and try to convert customer in strongly agree respondent by providing them better services and schemes. Distribution channel is importent in positioning of product Strongly agree Agree Can't Say Strongly Disagree 1.0% Dis Agree 18.0% 41.33% 38.33% 59
  • 60. If we see the chart then we find that out of 100% respondent 41.33% respondent are strongly agree that distribution channel have an important role in positioning of the product and 38.33% are agree and rest are disagree, it shows that our objective is fulfilled by this research and we can say that if we have to promote our product then we should have strong distribution channel. V.C. coolors provided by the company yes No 29.67% 70.33% 60
  • 61. If we see the chart then we find that out of 100% respondent, 70.33% are saying that they are getting V.C. coolers but 29.67 % are saying that they are not getting, it means company is not focusing on all retailers that major concerns for the organization. PepsiCo relationship with the retailers/distributors Strongly agree Agree Can't Say Strongly Disagree 4.67% Dis Agree 10.0% 27.33% 3.67% 54.33% 61
  • 62. If we see the chart then we find that out of 100% respondent 27.33% respondent are strongly agree that PepsiCo has maintaining good relationship with them and 10% are strongly disagree and 54.33 % are agree, it shows that company should thing that how can they maintain better relationship with every retailers and distributors. 62
  • 63. Perception of retailers/distributors towards the pepsiCo Distribution channel Excellent Good Bad Worst 10.67% 5.33% 35.33% 48.67% If we see the chart then we find that out of 100 % respondent only 35.33% are saying that PepsiCo have excellent distribution channel and 10.67% are saying that PepsiCo have worst distribution and 48.67 % are saying that PepsiCo have good distribution channel, here area of concern that how company can make happy those respondent who are thinking that PepsiCo 63
  • 64. have worst/bad Distribution channel and how can company develop good distribution channel and change the perception of retailers and distributors. "If better scheme is given then replace with coke" yes No 48.67% 51.33% If we see the chart then we find that out of 100% respondent, 51.33% respondent are saying that if they will get better services and scheme then they will switch over to another brand like coke and only 48.67% are saying that they will not switchover, it show that company should focus that how 64
  • 65. can be provided better schemes and services to the retailers and distributors in result they will not switchover to another brand. Cross tabulation: PepsiCo having good distribution channel * PepsiCo relationship with the retailers/distributors Symmetric Measures Assump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .593 .042 12.706 .000(c) .532 .048 10.851 .000(c) 300 A. Not assuming the null hypothesis. B. Using the asymptotic standard error assuming the null hypothesis. C.Based on normal approximation. 65
  • 66. Bar Chart PepsiCo relationship with the retailers/distributors 140 Strongly agree 120 Agree Can't Say Strongly Disagree 100 Dis Agree t n u o C 80 42.33% 60 40 18.33% 20 8.33% 5.67% 1.33% 0 Strongly agree Agree 1.0% Can't Say 0.67% Strongly Disagree 0.67% 0.33% Dis Agree PepsiCo having good distrbution channel If we see the table then we find that the relationship with the retailers and distributors having an important role in maintaining the good distribution channel because 42.33% respondent are agree to say that we have good relation with the PepsiCo and that shows that PepsiCo having good distribution channel. PepsiCo relationship with the retailers/distributors * Time taken by the company to make reach the product at retailers shop 66
  • 67. Symmetric Measures As sump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .710 .027 17.383 .000(c) .664 .036 15.334 .000(c) 300 a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. 67
  • 68. Bar Chart Time taken by the company to make reach the product at retailers shop 100 One Day 80 3 Day One Week One Month t n u o C 60 29.33% 40 24.67% 22.0% 20 8.67% 5.33% 0.33% 0 Strongly agree Agree 1.67% Can't Say 2.0% 1.33% Strongly Disagree Dis Agree PepsiCo relationship with the retailers/distributors If we see the table then we find that out of 100% respondent 29.33% respondent are saying that we have good relation with the PepsiCo because they are providing products at right time . PepsiCo relationship with the retailers/distributors * V.C. coolers provided by the company. 68
  • 69. Symmetric Measures As sump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .592 .046 12.674 .000(c) .535 .047 10.927 .000(c) 300 a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. 69
  • 70. Bar Chart V.C. coolors provided by the company 140 yes 120 No 100 t n u o C 80 44.33% 60 40 24.67% 20 0 10.0% 2.67% Strongly agree 10.0% 1.0% 0.33% Agree Can't Say Strongly Disagree Dis Agree PepsiCo relationship with the retailers/distributors If we see the table then we find that out of 100% respondent 44.33% respondent are agree to say that they have good relationship with PepsiCo because of they are getting visi coolers by the company, it means visi coolers have an important role in maintaining the good relationship with the retailers. PepsiCo relationship with the retailers/distributors * “If better scheme is given then replace with coke" 70
  • 71. Symmetric Measures AsSump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. -.429 .041 -8.203 .000(c) -.479 .045 -9.427 .000(c) 300 a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. 71
  • 72. Bar Chart "If better scheme is given then replace with coke" 120 yes 100 No t n u o C 80 60 34.67% 40 24.33% 19.67% 20 8.67% 4.33% 3.0% 0.67% 0 Strongly agree Agree Can't Say 1.33% Strongly Disagree 0.33% Dis Agree PepsiCo relationship with the retailers/distributors If we see the table then we find that 24.33% are strongly aree that they will not switchover to another brand because of better scheme but 34.67% respondent are strongly agree that if they will get better services and schemes then they will switch over to an- other company’s brand, it shows that if company have to ,maintain good relationship with retailers and distributors then company will be focus on better services and schemes. PepsiCo having good distribution channel * logistics facility of the company 72
  • 73. Symmetric Measures Assump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .216 .031 3.815 .000(c) .230 .047 4.075 .000(c) 300 a Not assuming the null hypothesis. b Using the asymptotic standard error assuming the null hypothesis. c Based on normal approximation. 73
  • 74. Bar Chart logistics facility of the company 150 own company 100 t n u o C 53.0% 50 13.33% 11.0% 7.0% 5.33% 0 Strongly agree Agree Can't Say 3.67% Strongly Disagree 6.67% Dis Agree PepsiCo having good distrbution channel If we see the table then we find that out of 100% respondent 53% respondent are agree to say that better facility of logistics have an important role in having good distribution channel . Visi coolers provided by the company * PepsiCo having good distribution channel 74
  • 75. Symmetric Measures Assump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .487 .049 9.632 .000(c) .443 .052 8.530 .000(c) 300 A, Not assuming the null hypothesis. B Using the asymptotic standard error assuming the null hypothesis. C. Based on normal approximation. 75
  • 76. Bar Chart PepsiCo having good distrbution channel 150 Strongly agree Agree Can't Say Strongly Disagree Dis Agree t n u o C 100 50.67% 50 16.33% 0 13.33% 2.0% 0.67% 2.33% yes 5.0% 3.0% 6.0% No V.C. coolors provided by the company If we see the table then we find that out of 100 % respondent, 50.67% are saying that they are agree to say that PepsiCo have good distribution channel because they are getting visi coolers from the company, it shows that visi coolers have an important role in having a good distribution channel. Visi coolers provided by the company * Perception of retailers/distributors towards the PepsiCo Distribution channel 76
  • 77. Symmetric Measures Assump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .544 .048 11.184 .000(c) .442 .056 8.509 .000(c) 300 a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. 77
  • 78. Bar Chart Perception of retailers/distributors towards the pepsiCo Distribution channel 125 100 Excellent Good Bad Worst t n u o C 75 40.33% 50 29.33% 25 6.0% 0 10.67% 8.33% 4.67% 0.67% yes No V.C. coolors provided by the company If we see the table then we find that out of 100% respondent, 40.33% respondent are saying that PepsiCo have good distribution channel because they are getting visi coolers from the company, it shows that visi coolers are very important for having good distribution channel. Time taken by the company to make reach the product at retailers shop * PepsiCo having good distribution channel 78
  • 79. Symmetric Measures AsSump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .735 .028 18.714 .000(c) .713 .030 17.575 .000(c) 300 a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. 79
  • 80. Bar Chart PepsiCo having good distrbution channel 120 Strongly agree 100 Agree Can't Say Strongly Disagree t n u o C 80 Dis Agree 60 35.33% 40 27.33% 18.67% 20 6.0% 0 0.67% One Day 5.0% 0.67% 1.33% 1.0% 3 Day One Week 0.33% 1.0% One Month Time taken by the company to make reach the product at retailers shop If we see the table then we find that 18.67 % respondent are strongly agree that PepsiCo good distribution channel because they are getting product within one day and 35.33% respondent are agree to say that PepsiCo have good distribution channel if they are getting product within 3 days,it shows that company’s distribution is depends on time that how quick company is providing product at door of the retailers/distributors. PepsiCo having good distribution channel * Services provided by the distribution/PepsiCo 80
  • 81. Symmetric Measures As sump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .640 .048 14.361 .000(c) .562 .043 11.727 .000(c) 300 a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. 81
  • 82. Bar Chart Services provided by the distribution/PepsiCo 200 yes No t n u o C 150 100 59.0% 50 18.67% 5.0% 0 Strongly agree Agree 3.33% Can't Say 0.67% Strongly Disagree 1.0% Dis Agree PepsiCo having good distrbution channel If we see the table then we find that 59.0% respondent are agree to say that PepsiCo have good distribution channel because they are getting good services and only 18.67% are strongly agree, it shows that better services and schemes have an important role in maintain good distribution channel. Distribution channel is important in positioning of product * “How accurately they fill the order" 82
  • 83. Symmetric Measures As sump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .097 .034 1.675 .095(c) .191 .044 3.365 .001(c) 300 a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. 83
  • 84. Bar Chart "How accurately they fill the order" 125 100% 50-80% 100 75 t n u o C 41.0% 50 21.0% 17.33% 25 0 18.0% 1.0% 0.33% Strongly agree Agree Can't Say Strongly Disagree 1.33% Dis Agree Distribution channel is importent in positioning of product If we see the table then we find that 41.0% respondent are strongly agree to say that distribution channel have an important role in positioning of the product because of only by good distribution channel they are getting fill their order by 100%. 84
  • 85. DATA ANALYSIS FROM CONSUMERS PERSPECTIVE: Frequencies: Demanded brand Available in the Market yes No 45.0% 55.0% If we see the chart then we find that out of 100%respondent, only 55% respondent are agree to say whatever brand they demanded they are easily get that but 45% respondent are saying that they are not getting the demanded brand, it is major concern that why these respondent are not able to get their demanded brand. 85
  • 86. Cross Tabulation: Age of the respondent * Soft drink consumed by the respondent in a week Symmetric Measures As Sump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. .332 .106 3.489 .001(c) .322 .103 3.363 .001(c) 100 a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. 86
  • 87. Bar Chart Soft drink consumed by the respondent in a week 30 25 one two to three three to five more than five t n u o C 20 15 30.0% 10 5 10.0% 9.0% 8.0% 6.0% 5.0% 3.0% 2.0% 1.0% 0 10-20 21-25 1.0% 26-35 1.0% Above age of the respondent If we see the graph then we find that age group 21-25 is more potential customer and company should focus on them and provide them better taste, quality according their preferences. Brand preferred by the respondent * demanded brand Available in the Market 87
  • 88. Symmetric Measures As sump. Std. Error Value Interval by Pearson's R Interval Ordinal by Spearman Ordinal Correlation N of Valid Cases Approx Approx. (a) . T(b) Sig. -.241 .093 -2.455 .016(c) -.241 .095 -2.455 .016(c) 100 a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. 88
  • 89. Bar Chart Demanded brand Available in the Market 30 yes 25 No t n u o C 20 15 29.0% 23.0% 10 22.0% 13.0% 5 10.0% 3.0% 0 PepsiCo Coke Others Brand prefered by the respondent If we see the graph then we find that coke brand is more easily available than Pepsi it means there is some fault in distribution channel and company should find that and make available their brand at every retailers shop. 89
  • 90. COMPRISION STUDY OF PEPSI AND COKE SERVICE COKE 42% PEPSI 58% 90
  • 92. CONSUMPTION PATTERN OF PEPSI 600 ML 2 LT 17% 200 ML 30% 200 ML 300 ML 16% 600 ML 2 LT 300 ML 47% 90 80 70 60 50 40 30 20 10 0 East West North 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr ANALYSIS OF FINDINGS AND OBSERVATIONS: 92
  • 93. The main objective of the company is to increase the brand preference and market share so any information material form this point of view had to be take into account along with the formats provided by the company for predefined information recording and analysis of those recordings and present the information in an organize and systematic manner in a condensed form reflecting the actual position of the market. The information had to be recorded in the format along with the relevant information as per the objectives of the research and an analysis of that information had to be made and present them in an understandable format so that immediate inferences can be drawn. Generally those information had to be presented in percentages and the other findings and observations had to be evaluated and a list of findings had to be arranged in order of their seriousness and areas of serious concern along with the outlet details. After the analysis sheets and formats have been surrendered to the C.E’s after analysis by the trainees it was further analyzed and evaluate by him and a brief analysis was made each day of the daily report. The CE’s further forwarded these reports after retaining the reference copy, to MDC for further review and reference. SWOT ANALYSIS 93
  • 94. STRENGTHS • Pepsi is a well-established co., so it has a good reputation in the market. • Advertising of Pepsi is much more aggressive than Coke. • Backed by huge promotion at national & international level. • Lot of SGA’s provided in the market. . Marketers are aggressive to solve The problem Marketing channel is more strong compression coke WEAKNESSES • Non-fulfillment of commitments on time, made to shopkeepers. • Incompetent salesman who do not give the schemes in the market regularly. • Unavailability of various demanded flavors like Mountain Dew & Mirinda, Lemon. • Not proper control over distribution network. • Lack of Knowledge about the product. OPPURTUNITIES 94
  • 95. • May tie up or liaison with major showrooms, computer centers & restaurant. • Huge publicity of Mountain Dew, Lemon Miranda /Slice has created a lot of demand. • Company has brand equity in the eyes of customers, so its new products can easily penetrates in the market. • Untapped market. THREATS • Threat of competitors new brand entry in the market in near future. • Restrictions made by Govt. agencies that soft drinks are harmful & nonnutritive. • Natural juice are now available whose price are less or same as soft drinks. 95
  • 97. CONCLUSION 1. After visiting nearly 200 outlets I found that Pepsi & its Brands is not doing a good job in Greater Noida Region. It is clear that Pepsi (58%) has lagging Coke (42%) in the soft drink market in Greater Noida region. If we compare it with Signage or display material than Pepsi has an edge over coke. 2. At this time it is solely depends on the retailer which brand he offers to the consumer? Although the company has been unable to satisfy the retailers. The company must take immediate steps in order to resolve its disputes with these retailers. 3. It was also found that the schemes that are brought up in the market by Pepsi & Coke after every couple of day is not making any net effect on the sale of Cola, whereas one is cannibalizing others market only. 4. It was also seen that Pepsi brand is better sold than coke. But it is Thumsup, which is making the major difference in the market. 5. The sale in age wise section, it was found that 200ml is sold in all the age groups with same frequency but 300ml is sold mostly in 16 to 45yr. of age group where as CAN is sold in hi younger generation only. Finally 2lit. Are used only for family or party purpose. 6. It also seen shopkeeper does not have correct information about the schemes which company made for their benefit. It’s necessary that they should get all information as soon as so, that they use those benefit. It also beneficial to encourage new shopkeeper. 97
  • 99. LIMITATIONS • Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices. • Weather conditions were not favorable. • Some of the respondents were not co-operative & many seem to be having no interest. • The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out. • Time limitations. • Area was specified. • It is extremely difficult to persuade retailer to respond to questionnaire. • The retailer knows us as people from Pepsi there by the responses could have been biased. • I had lack of knowledge about the product of the local market. • The company does not provide any financial assistance. • The time allowed for the project was very short (8 weeks). It was impossible to study deeply in that short period. • There was the staying place hearer to local market. . 99
  • 101. RECOMMENDATIONS:- 1. PEPSI, the choice of Generation next is not providing the first choice of young generation. A young generation wants something strong in cold drinks & thus prefers Thumsup. Pepsi should come out with some extra strong taste to catch up maximum young generation & to become exactly Generation Next drink. These days younger generation is looks to prefer Mountain Dew for thrill , which having good sign for pepsi Brand. 2. Company should appoint competent & honest salesman so that they could provide schemes to the entire retailer’s & cover their full route. 3. It is often seen that some salesman do not intimate schemes to the retailer & few of the retailers complained about it. So there should be frequent visits of Customer Executives to their respective areas to keep the shopkeepers benefited with various schemes. 4. Delay in starting of supply vans from respective depot should be checked & a proper time register should be maintained. 5. Most of the retailers are complaining about non-fulfillment of commitments regarding their sampling. Company should make sure that the retailers get the sampling on time so that they are satisfied. 6. Most of the retailers are complaining about there dissatisfaction But not proper steps taken to resolve those problem. Marketing Management should sort some solutions to this major problem of replacing burst bottles. 7. All bottle should be supply in market systematically according to there batches so that bottle should not be expire before selling to customer. These should also be checked at the time of issue of goods from the distributor’s godown to the respective routes. 8. Company should try to give some credit facility to the distributors so that they get motivated because most of the time shopkeeper looking for credit. 101
  • 102. 9. Credit facility for retailers should be provided to increase the sales in retail area. 10. Proper feedback system should be developed by ensuring regular visits & check randomly at the various outlets. 102
  • 103. BIBLIOGRAPHY WEBSITES: • www.pepsi.com • www.pepsico.com • www.jaipuriagroup.com • www.rkjworld.com BOOKS: • Marketing Management- Radha Swami/ Nam kumari • Research Methodology-C.R.Kothari • Principles of Marketing-P. Kotler & Armstrong NEWS PAPERS: • The Times Of India • The Economics Times • Hindustan Times • Business Today (July edition) 103
  • 105. LIST OF ANNEXURES • QUESTIONNAIRE Questionnaire related to academic purpose, which is prepared to take feedback from retailers. Name of outlet - Address - Contact person with phone noType of outlet:Glossary, kiosk, provision store, eatery, other. • Present share of your outlet Pepsi Coke • You are interested to sale Pepsi Coke Reason:• Salesman ‘s behavior • What are demands of various packs of Pepsi Pack Demand in % 200ml 250/300ml 105
  • 106. 500ml 1000ml 2000ml • Demand of different customer group Group Pepsi Coke Male _____ _____ Female _____ _____ Children • Do you get the delivery at right time? Yes No • Are you happy with companies’ distribution channel? Yes No • Which of the company you feel have better distribution network? Coke Pepsi Others • Do you get the benefits of daily schemes launched by the company? Yes No • Do you receive the ordered quantity? 106
  • 107. Yes No • Do you want Salesman to be changed at regular intervals? Yes No • Companies’ Officers visit time to time? Yes No • Which flavor is more demanded? Pepsi - Mirinda-Orange Mirinda-Lime - Mountain Dew 7UP - Slice - • Is company responsive to your complaints? Yes/No • The cooling machine is :Your own / Pepsi’s / Coke’s • Is any survey done by other soft drink company? Yes/No • Are you satisfied with the brands of Pepsi? 107
  • 108. Yes / No • Do you get proper scheme at right time? Yes / No • Does coke offer better then Pepsi Yes / No • How many times delivery van comes? Ones in a day - In alternate days Once in a week Any other, please specify • Your recommendations about Pepsi Company? • Any suggestion 108
  • 109. 109