PROJECT REPORT
ON
A study on SALES & DISTRIBUTION CHANNEL AND
PROMOTION of PepsiCo with reference to
SMV BEVERAGES JAMSHEDPUR
(FRANCHISEE OF PEPSICO INDIA).
IN
JAMSHEDPUR
Submitted in partial fulfillment of PGDM
Submitted To: Prof. R. Ravi Kishore
Submitted By: Nitesh Kumar
1
DECLARATION
I NITESH KUMAR hereby declare that the project titled SALES &
DISTRIBUTION AND PROMOTION is an original work carried out under the
guidance of PROF. R. RAVI KISHORE. The report submitted is a bonafide
work of my own efforts and has not been submitted to any institute or
published before.
Name:
Signature:
2
Certificate from the organization
TO WHOMESOEVER IT MAY CONCERN
This is to certify that Mr. NITESH KUMAR of PGDM has successfully
completed Summer Training Program for a period of 45 days with S.M.V.
Beverages Pvt. Ltd. JAMSHEDPUR from 28th APRIL 2012 to 14th JUNE
2012.
As per our assessment he is hard working and his performance has been
good during the training program.
We wish him all the success for his future.
MUKTI RANI
Personnel & Admin. Officer
Date:
Place:
3
Faculty Guide Certificate
I Prof. R.RAVI KISHORE certify Mr. NITESH KUMAR that the work done
and the training undertaken by him/her is genuine to the best of my
knowledge and acceptable.
Signature
Date:
4
ACKNOWLEDGEMENT
I owe my sincere gratitude towards to Prof. Mir Irfan Ul Haque, Director
Academics of VISHWA VISHWANI SCHOOL OF BUSINESS, Hyderabad and
my faculty guide Prof. R. Ravi Kishore for extending the support towards the
completion of the project.
Before I get into the thick of the things I would like to add a few heartfelt words
for the people who were part of this project in numerous ways people
who gave unending support right from the stage the project was started,
appreciated and encouraged when being depressed.
In this context I would like to express my gratitude towards my parents
and family members who have constantly supported and played a pivotal role
in shaping my career.
I take this opportunity to express my gratitude to Mr. P.S. Kumar (Director),
Mr. Subroto Chakraborty (T.D.M), Ms. Mukti Rani (Personnel & Admin.
Officer) of S.M.V. Beverages who have given me the opportunity to do the
project in their esteemed organization.
I would also like to thank
Mr. Manoj Kumar Singh
(A.D.C.) and Mr.
Dhananjay Kumar (ME) of SMV Beverages without whose support this
project couldn’t have been in the form in which it is now. I owe more than what
I can mention mostly for teaching me to see the silver lining in every dark
cloud.
MR. NITESH KUMAR
Date:
Place:
5
EXECUTIVE SUMMARY
PepsiCo organization initiated this project to assess the market potentiality of
Pepsi in the present market. The main motive of this project is to identify the
potentiality of the Pepsi and their other product those they are producing.
The project methodology involved carrying out the preliminary research to gain
insight into the present market sub segment, current trends, growth, players
and potential. Analyzing the requirement and designing questionnaire. Taking
interviews, conducting retailers interviews of different type of demographic
factors under like age, income, status, Collating & analyzing data and
identifying
leads
that
qualifying
for
an
offering
and
formulating
recommendation for S.M.V. Beverages, Jamshedpur.
In the findings researchers got that Pepsi company is one of the best soft
drink company , because it maintain the quality, taste and also the
Company is maintain good relationship with retailers and they are also
distributing their product to their retailers when they want and the Company
also provide them in time.
Theory is important, because it enhances our understanding of business
phenomena and helps managers to think about what they should do. Summer
training or internship training program provides opportunities to apply this
theory into the real business practice.
In the present scenario of competitive marketing, every business institution
requires to prepare strategies for efficiently utilizing their available resources
and environmental opportunities. At this stage of my learning process I also
feel needs for knowing different business strategies that a business
organization follows.
In this training period I got opportunities to study on
some marketing strategies of PepsiCo.
And in this report I am going
to
explain some of those strategies which I had applied in practical during
my summer training program.
6
INDEX
Chapter. no.
Content
Page No.
Chapter 1
Introduction
9-14
Chapter 2
Industry Profile
16-20
Company Profile
21-28
Literature Review
29
Chapter 3
Research methodology
31-41
Chapter 4
Data collection
43-55
Analysis& Interpretation
56-67
Chapter 5
Bibliography
Findings
69
Recommendations
70
Conclusions
71
Books/ Articles referred
72
Websites referred
Annexure
Questionnaire
74-76
7
CHAPTER: -1
INTRODUCTION
8
SALES
A sale is the act of selling a product or service in return for money or other
compensation. It is an act of completion of a commercial activity.
The seller or salesperson – the provider of the goods or services – completes
a sale in response to an acquisition or to an appropriation, or to a request.
There follows the passing of the title (property of ownership) in the item, and
the application and due settlement of a price, the obligation for which arises
due to the seller’s requirement to pass ownership. Ideally, a seller agrees
upon a price at which he willingly parts with ownership of or any claim upon
the item. The purchaser, though a party to the sale, does not execute the
sale, only the seller does that. To be precise the sale completes prior to the
payment and gives rise to the obligation of the payment. If the seller
completes the first two above stages (consent and passing ownership) of the
sale prior to settlement of the price, the sale remains valid and gives rise to an
obligation to pay.
DISTRIBUTION CHANNEL
My field of study will look into upon the following aspects of distribution
and selling strategy and market-research.
The main purpose of trade is to supply goods to the consumers living in far off
places. As goods and services move from producer to consumer they
may
have
to
pass
through various individuals. The middlemen are
connecting links between producers of goods and consumers. They perform
several functions such as buying, selling, storage, etc.
The middlemen
constitute the channels of distribution of goods.
a
Thus,
channel
of
distribution is the route or path along which goods move from producers
to ultimate consumers.
The route taken by goods as they move from producer to consumer is
known as Channel of Distribution. From the above diagram it can be found
that there is just one direct channel i.e. from producer to the consumer.
9
There are many indirect channels like:
(1) PRODUCER
DISTRIBUTOR
RETAILER
(2) PRODUCER
CONSUMER
(3) PRODUCER
DISTRIBUTOR
(1) PRODUCER
DISTRIBUTOR
CONSUMER
CONSUMER
CONSUMER
STOCKIST
RETAILER
PRODUCER
DISTRIBUTER
RETAILER
CONSUMER
The route normally used by FMCG companies especially by the soft drink
companies is the second one i.e. (ii). In this case the wholesaler is usually
called µdistributor.
If the producer is producing goods on a large scale, it may not be
possible for him to sell goods directly to consumers. As such, he sells goods
through middlemen. These middlemen may be wholesalers or retailer s. A
wholesaler is a person who buys goods in large quantities from producers;
where as a retailer
is one who buys goods from wholesalers and
producers and sells to ultimate consumer s as per their requirement. The
involvement of various middlemen in the process of distribution constitute
the indirect channel of distribution. Let us look into some of the
important indirect channels of distribution.
10
DISTRIBUTOR
Distributors are one of the important middlemen in the channel of distribution
who deals with the goods in bulk quantity. They buy goods in bulk from the
producers and sell them in relatively smaller quantities to the retailers. In some
cases they also sell goods directly to the consumers if the quantity to be
purchased is more. They usually deal with a limited variety of items and also in
a specific line of product, like iron and steel, textiles, paper, electrical
appliances, etc. Let us know about the characteristics of distributors.
CHARACTERISTICS OF DISTRIBUTOR
The followings are the characteristics of distributors:
I.
Distributors buy goods directly from producers or manufacturers.
II.
Distributors buy goods in large quantities and sells in relatively smaller
quantities.
III.
They sell different varieties of a particular line of product. For example,
a distributor who deals with soft drinks is expected to keep all varieties
of soft drinks viz. 200ml, 250ml, 300ml, 500ml, 600ml, 1ltr, 1.2ltr, 2ltr
glass bottle pet bottles, mineral water, soda etc.
IV.
They may employ a number of agents or workers for distribution of
products.
V.
Distributors need large amount of capital to be invested in his business.
VI.
They generally provide credit facility to retailers.
VII.
He
also
provides
financial
assistance
manufacturers.
11
to
the
producers
or
FUNCTIONS OF DISTRIBUTORS
Let us now know what the functions of distributors are.
(a) Collection of goods: A distributor collects goods from manufacturers or
producers in large quantities.
(b) Storage of goods: A distributor collects the goods and stores them
safely
in warehouses, till they are sold out. Perishable goods like fruits,
vegetables, etc. are stored in cold storage.
(c) Distribution:
A distributor sells goods to different retailers. In this way,
he also performs the function of distribution.
(d) Financing: The distributor provides financial support to producers and
manufacturers by sending money in advance to them. He also sells goods to
the retailer on credit. Thus, at both ends the distributor acts as a financier.
(e) Risk taking: The distributor buys finished goods from the producer and
keeps them in the warehouses till they are sold. Therefore, he assumes the
risks arising out of changes in demand, rise in pr ice, spoilage or destruction of
goods.
Promotion
Promotion is a key ingredient in marketing campaigns consists of a collection
of incentive tools, mostly short term, designed to stimulate quicker or greater
purchase of particular products or services by customers.
Personnel
selling
Advertising
Sales
promotion
Direct selling
12
Public
relation
Advertisement
Advertising is a fascinating and important aspect of marketing. Advertising
appeals to all irrespective of age, caste, sex, borders etc. Words which can
be associated
persuasive,
with advertising
boring,
and
are
fun,
humor,
warm,
entertaining,
irritating. Advertising in simpler words is
communication and persuasive and leaves a mark in the mind of the
consumer. I worked on PepsiCo promotion. I searched that how many outlets
have glow shine board (GSB), flex board (FB), air hanger, company logo,
painting and gravity rack
MAJOR INSTITUTIONS INVOLVED IN THE ADVERTISING PROCESS
Control Institutions
Facilitating Institutions
Government
Advertising agencies
Advertiser
Competition
Media
Market and Consumer
Behavior
THE FIVE M’S of ADVERTISING
MESSAGE
MISSION
What message
should be
sent?
MONEY
What are the
advertising
objectives?
MEASUREMENT
How should
result be
evaluated?
How much
can be spent?
MEDIA
What media
should be
used?
A
very important
part of
advertising is to decode
the
medium of
advertising and how much to spend on each time. For advertisement is takes
help of print media, electric media, pop materials etc.
13
Objectives :
 To know the distribution strategy adapted by the organization
 To arrange the products of Pepsi in visi-cooler as per the guidelines of
PepsiCo.
 To know the response of the dealer regarding the products of PepsiCo.
 Consumers buy what they see in the retailing. i.e. to attract consumers
by displaying their favorite brands or to help the consumers in finding
their favorite soft drink flavor or brand.
 To attract consumers by displaying different brands.
 To find out the factors that influences the consumer’s preference of a
particular flavor of soft drink.
 To find out the market share of PepsiCo with respect to coke in terms
of WARM STOCK,CHILLED STOCK AND EMPTY STOCK .
 To motivate the retailers for effective utilization of visi-cooler for
selling PepsiCo brands.
 To analyze the problems of retailers and customers.
 How many outlets are there which are covered with glow sign board,
hanger and flexi board.
14
CHAPTER:-2
 INDUSTRY PROFILE
 COMPANY PROFILE
15
ABOUT FMCG
The Fast Moving Consumer Goods (FMCG), are the products that are sold
quickly at relatively low cost. FMCG industry is also called as Consumer
packaged goods (CPG). Examples include non-durable goods such as soft
drinks, toiletries, and grocery items. FMCG primarily deals with the
production, distribution, and marketing of fast moving consumer goods. Some
of the prime activities of FMCG industries are selling, marketing, financing,
purchasing, etc. The industry also engaged in operation, supply chain, and
management.
FMCG industry provide a wide range of consumables and accordingly the
amount of money circulated against FMCG products is also high. The
competition among FMCG manufactures is also growing and as a result of
this, investment in FMCG industry is also increasing, specifically in India,
where FMCG industry is regards as fourth largest sector with total market size
of US$13.1 billion. FMCG sector in India is estimated to grow 60% by 2010.
FMCG industry is regarded as the largest sector in New Zealand which
accounts for 5% of gross domestic product (GDP).
Common FMCG products
Food and dairy products, glassware, paper products, pharmaceuticals,
consumer electronics, packaged food products, household products, plastic
goods, printing and stationery, photography, drinks, tobacco.
Scope
FMCG refers to those retail goods that are generally replaced or fully used up
over a short period of days, weeks, or months, within one year. This contrasts
with durable goods or major appliances such as kitchen appliances, which are
generally replaced over a period of several years.
16
From the consumers’ perspective:

Frequent purchase

Low involvement

Low price
From the marketers’ angle:

High volume

Low contribution margins

Extensive distribution network

High stock turnover
Leading FMCG Companies:
Nestle, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, PepsiCo,
Carlsberg, Kleenex, General Mills, Parle, Britannia
Job opportunities in FMCG industry:
FMCG industry creates a wide range of job opportunities. This industry is a
stable, diverse, challenging and high profile industry providing a wide range of
job categories like sales, supply chain, finance, marketing, operation,
purchasing, human resources, product development, general management.
17
COMPANY PROFILE:
\
Type
Public (NYSE: PEP)
Founded
1965
Headquarters
New York, USA
Key people
Indra Nooyi, Chairwoman, President & CEO
Industry
Food and beverage
Products
Pepsi, Mountain Dew, 7 UP, Slice, Mirinda, Diet Pepsi,
Diet cane, Lay’s, Tropicana, Lipton Tea, KurKure,
Aquafina, Duke, Soda Lehar
Net income
$6.44 billion USD (2011)
Employees
297,000(2011)
Revenue
$66.50 billion USD (2011)
GROUP OF COMPANIES:

Frito- Lay North America

PepsiCo Beverages North America,

PepsiCo International, Quaker Foods North America
18
About PepsiCo:
PepsiCo is a world leader in convenient snacks, food and beverages with
revenues of more than US$60.504billion and over 297,000 employees.
PepsiCo is second largest company of soft drink maker PepsiCo is an
American multinational corporation headquartered in purchase, New York,
United States, with interests in the manufacturing, marketing, and distribution
of grain based snack foods, beverages, and other products. PepsiCo was
formed in 1965 with the merger of the Pepsi-cola Company and Frito-Lay, Inc.
PepsiCo’s product lines generated retail sales of more than $1 billion each,
and the company’s products were distributed across more than 200 countries.
Indra Krishnamurty Nooyi has been chief executive of PepsiCo since 2006.
PepsiCo’s founder name is Donald Kendall and Herman Lay. Our mission is
to be the world’s premier consumer-products company focused on convenient
foods and beverages.
.
PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the
Punjab government- owned
Punjab Agro Industrial Corporation (PAIC) and
Voltas India Limited. This joint venture marketed and sold Lehar Pepsi
until
1991, when the use of foreign brands was allowed; PepsiCo bought out its
partners and ended the joint venture in 1994. Others claim that firstly Pepsi
was banned from import in India, in 1970, for having refused to release the
list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on
the market shortly afterwards. These controversies are a reminder of "India's
sometimes acrimonious relationship with huge multinational companies."
Indeed, some argue that PepsiCo and The Coca- Cola Company have "been
major targets in part because they are well-known foreign companies that draw
plenty of attention." PepsiCo has grown to become one of the country’s leading
food and beverage companies. One of the largest multinational investors in
the country, PepsiCo has established a business which aims to serve the
long term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S. $1 billion since
19
the company was established in the country. PepsiCo provides direct and
indirect employment to 297,000 people including suppliers and distributors.
PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including
Pepsi Foods Ltd, Frito Lay India, and Tropicana Beverages Company. The
company, through its subsidiaries manufactures, bottles, and exports fruit
juices and carbonated beverages and packaged snacks such as Lays, Ruffles,
Fritos, and Cheetos. PepsiCo India is based in Gurgaon, India.
PepsiCo nourishes consumers with a range of products from treats to
healthy eats that deliver joy as well as nutrition and always, good taste.
PepsiCo India’s expansive portfolio includes iconic refreshment beverages
Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such
as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking
water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice
based drinks ± Tropicana Nectars, Tropicana Twister, Slice, and the new
brand
Nimbooz by 7up
with
real
lemon
juice.
Local brands Lehar
Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of
brands.
KEY DEVELOPMENT IN PEPSICO INDIA HOLDINGS PVT. LTD.
PepsiCo India Holdings Pvt. Ltd.
Launches
Packaged
Nimbu Paani
'Nimbooz by 7Up' The product, with real lemon juice, no fizz and no
artificial
flavors,
will
be available in three packaging formats of 200 ml
returnable glass bottles, 350 ml PET and 200 ml tetra packs, priced at INR 10,
INR 15 and INR 10 respectively.
20
S.M.V. BEVERAGES Pvt. Ltd.
Introduction:
M/s SMV Beverages Pvt . Ltd., Jamshedpur is a franchise owned bottling
plant is located on the Tata Kandara road in Adityapur Industrial Area at
Jamshedpur and producing Pepsi range of bottled soft drinks, viz. Pepsi,
Mirinda, 7up, Mountain Dew, Slice and Soda and it has now become a
house hold word in the state of Jharkhand.
The previous name of SMV was STEEL CITY BEVERAGES, but in March
1999 steel city beverage taken over by Mr. S.K. Jaipuria from Mr. N.K. Kamani
along with Rushab Marketing Company. He established another plant in the
same name of SMV Beverages Pvt. Ltd. And increase the production from his
new plant is 600 bottles per minute. Simultaneously a new market came in
name of Hyderabad Marketing Company, which is creating the needs of whole
Jharkhand state. The company symbolizes self reliance in technology and
ranked as the best bottling company of the country in terms of quality,
efficiency, and productivity. Till 1998 it was under its chairperson Smt Kokum
Kamani
and the country has constantly bagged numerous awards in
various occasions for quality assurance and productivity. In 1993 it bagged
top honor s for the best quality conscious plant among all the Pepsi
bottling companies in India. Steel City Beverages Pvt. Ltd. Was established in
the year 1967 and production commenced in March 1969. At the very start
company installed state of art machines and technology for the production and
bottling of soft drink. The bottling plant with a capacity of 220 bottles per
minutes was totally automatic and also had a modern state of art inter mix
machine for bringing forth the right blend of flavors. The company constitutes
to adopt innovative technology in keeping with its policy of constant entered
into an agreement with Pepsi food limited for the production and sales of soft
drinks for the people of Jharkhand. Right now there is only one bottling plant of
Pepsi in Jharkhand and it caters the need of all the Pepsi products in
Jharkhand. Entire state is divided into three territories Jamshedpur, Ranchi,
and Dhanbad, and one territory development officer controls each territory.
21
ENVIRONMENT SCANNING:
The process by which organization monitors their relevant environment
to identify opportunities and threats affecting their business are known as
environment scanning.
The external environment in which S.M.V. Beverages Pvt. Ltd. exists consists
of a bewildering variety of factors. These factors (may also be termed
as influences) are events, trends, issues, and expectation of different
interested groups. These factors are explained below.
Events are important and specific occurrences taking place in different
environment sectors.
Trends are the general tendencies or the courses of action along which
events takes place. Issues are the current concern that arises in response to
events and trends.
Expectations are the demands made by interested groups in the light of their
concern for issues. By monitoring the environment
though environmental
scanning, the S.M.V. BEVERAGES Pvt. Ltd. consider s the impact of the
different events, trends, issues, and expectation
management
process.
Since
the
environment
on
its
strategic
facing organization
is
complex and its scanning is absolutely essential, strategist has to deal
cautiously with the process of environmental scanning is collected
systematically. Information related to markets and customers, the changes in
legislation and regulations which have a direct impact on organizations
activities, government policy statements pertaining to S.M.V. BEVERAGES
Pvt. Ltd. business and industry and so on, could be collected continuously to
monitor changes and take the relevant factors into account.
S.M.V.
BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with
specific environmental issues from time to time.
22
Such studies may be conducted, for instance, when S.M.V. BEVERAGES Pvt.
Ltd. has to undertake special projects, evaluate existing strategies, or devise
new strategies. Changes due to unforeseen development may also be
investigated with regard to their impact on the organization. Today S.M.V.
Beverages Pvt. Ltd. stands as a proud monument the great visionary its
founder Late D.N. Kamani and
strides
forth
towards
progress
and
prosperity for the fulfillment of the ideas of its revered founder.
SMV Jamshedpur is the part of Jaipuria Group. Jaipuria Group has the
distinct honour of being the biggest bottler in India of the global giant PepsiCo.
It controls near about 60% of pepsi’s bottling business in India. The group has
been managing a network of scores of distributors and simultaneously proving
employment to thousands of people. With state of the art technology and
plants equipped with the latest machinery, the Jaipuria Group has occupied a
remarkable position in the soft drink industry of India. The company has
created a stronghold across the county.
P.S.kumar is CEO of SMV Beverages Ltd. Company have about 2000
employees and turnover per year about 63 crore in Jamshedpur and hole
plant turnover per year about 200 crore.
23
ORGANISATIONAL STRUCTURE
BOARD OF DIRECTOR
MANAGING DIRECTOR
CEO
FINANCE
MANAGER
PLANT MANAGER
A/C ASSISTANT
PAM
HR MANAGER
SHIFT ENGINEER SHIPPING
H.R EXECUTIVE
COORDINATOR
A/C CLERK ASSIST.
WORKER
H.R CLERK
ASSIST.
HOS
T.D.M
A.D.C
C.E
M.E.M
M.D.M
SENIOR TECHNICIAN
TECHNICIAN
M.D.C EXECUTIVE
M.E
P.S.R
24
Q.C
COMPETITOR
Pepsi has a tough competition with Coca Cola while it faces a little
competition with the local producers like RC Cola etc. The local producers
hardly affect the sales of Pepsi in the market. There are different types of
competitor in the market. Some of them in which our product lines are
discussed below:
Close Vs Distant Competitor
Pepsi and Coke are close competitors. It means that both have direct
competition in the market, their products are close substitutes for one another.
Both the products can influence the market share of one another through
effective strategies made to cope up with their competitors. Pepsi cola and
Parle juice are distant competitors of one another. It means that their products
satisfy the same want but they are in indirect competition with one another.
Strong Vs Weak:
Coca Cola and Pepsi are strong competitors. Pepsi is the market leader and
Coca Cola is its competitor. The Pepsi makes defense strategies so that it can
maintain its position in the market. While Coca Cola is a challenger and it
makes attack strategies so that it can become the market leader. RC Cola is
25
weak competitor of pepsi. Pepsi is the market leader and RC Cola is the
follower. Pepsi is not in direct competition with the RC Cola. It means that RC
Cola has little effect on the sales of Pepsi. Pepsi Cola is situated in an industry that is
dominated by two competitors, Coca-Cola and of course themselves.
A DAY AT PEPSI PLANT
In summer, when the mercury level crosses 45.6 deg C we wish to have ice
creams or cold drinks only. And it is as like a dream, if one gets the chance to
visit the production unit of a cold drink plant, and also gets opportunity to have
cold drinks without any limit and cost on such a hot day. Wednesday, 13th
June 2012 was one of the hottest days in the Jamshedpur of this years
summer and also a dreams day for me when I got such an opportunity to
visit the production unit of Pepsi of
S.M.V. Beverages Pvt. Ltd.
Jamshedpur.
Here I want to share my experience of visiting the production unit of
Pepsi and knowledge I gained after seeing the production processes of
different brands of Pepsi.
But before going into the deep I would like to thank Mr. Dhananjay Kumar
(M.E) , who changed the hottest day into my dream day and also to all staffs of
S.M.V. Beverages Pvt. Ltd. Jamshedpur for guiding me during this visit and
sharing their vast knowledge and experience with me .
Pepsi production process:
Any cold drinks (soft drinks) generally contains

Water

Sugar

Flavors or fruit pulp

Chemicals

CO2 gas (in carbonated soft drinks)
26
The below four ingredients are added with the first ingredient i.e. water and
cold drink is prepared. Here in S.M.V. Beverages Pvt. Ltd. Jamshedpur
also the same ingredients are used to prepare Pepsi and its other
brands. All these ingredients are added at different stages by different
processes. Pepsi products are available in different SKUs (stock keeping units)
or packs, e.g. glass bottle, pet bottle, metal can, tetra pack etc. the preparation
of main liquid or drink is same but the machines and equipments used
for filling in different SKUs are different.
Four Ingredients:

Water

Sugar

Salt

Co2 gas
PRODUCTION PROCESS
The production process being carried on the SMV Beverages (Jamshedpur) in
for batch type. The entire process is almost automatic and it requires huge
amount of water and electricity. The production process is divided into
following steps:
1. Water Treatment.
2. Bottle Washing.
3. Syrup Preparation.
4. Acid room.
5. Filling.
6. Packaging
7. Shipping.
27
PepsiCo follow five principles of sustainable packaging design:
Reduce : Using less material in the packaging, to conserve natural resources.
Reuse
:Increasing use of reusable packaging and increasing the
amount of recycled material in the packaging.
Recycle : Designing
packaging
for
recycling
and
developing
biodegradable and compostable packaging solutions.
Remove
: Eliminating environmentally
sensitive materials and processes
from the packaging.
Renew : Increasing use of renewable resources.
In an effort to meet his goals, PepsiCo have launched a global
sustainable packaging policy and formed a Sustainable Packaging Council
dedicated to:

Developing sustainable packaging strategies, goals, and targets

Developing alternative packaging material technologies
Hyderabad Marketing Company
In this unit, the head of sales and marketing is in charge of all the marketing
activities i.e. sales promotion, publicity, advertisement, market survey,
shipping. Though his main manager is assisted by sales executive and sales
supervisor.
28
Literature review
There is a project on sales distribution, promotion and a consumer survey,
which has been done by me for SMV BREVELAGES. LTD, JAMESHEDPUR
(A franchise of Pepsi India Ltd). Sales distribution and the market research
has the aim of building mutually satisfied long term relation with key parties ±
customer , suppliers, distributors in order to earn and retain their business.
STOCK: CHILLED STOCK AND EMPTHY STOCK.

To estimate Per day sale of Pepsi brand and its competitors in
Jamshedpur

To analyze the problem of retailer and customer

To analyze customer satisfaction of Pepsi as compared to coke
Description of the Field
The field of the study is JAMSHEDPUR town of the JHARKHAND. The study
was on the market research on Pepsi product and also about the retailers. As
it is the GREEN CITY of JHARKHAND, this region is very developing with
every scope to boost the living standard of people. As the situation is
convenient for our investigation to study MARKET of PEPSICO IN
JAMSHEDPUR MARKET´.
As field situation is crucial for the research, we find the field informative for a
research with the available heads.
29
CHAPTER:-3
 RESERCH METHODOLOGY
 MARKETING AVTIVITIES
 MARKETING MIX
30
RESEARCH METHODOLOGY
Introduction
The main aim of this research study is to analyze the soft drink preferences
and drinking habits of soft drink of people of different age, sex, education and
income groups in the city. Also find out the avg. expenditure (weekly). The
research will determine the factors which influence the population to prefer a
certain soft drink.
Objective

To find the Soft drink preferences of the people based on their age,
sex, education, profession and occupational income.

To determine average weekly expenditure on soft drinks.

To know the distribution strategy adapted by the organization.

To find out the market share of Pepsi with respect to coca-cola in
terms of WARM ,CHILLED.
Purpose:
The purpose of the project is to gather information about the true
market position of the soft drink market in the Jamshedpur division. Its main
objective is to find out how strong the relationship between PepsiCO. and the
customer. what are the problems faced by retailer & customer.
31
Methodology
Research design:
The research design used in this project is a descriptive as well as exploratory
research design. The design will explore and describe the characteristics of
users of a given product, the degree to which the product use varies with
income, education, sex, age. So this design is appropriate for the project.
Sampling Method:
The sampling procedure used will be non-probabilistic and the method
employed will be convenience sampling method because the sample
population will be readily available outside the retail outlet itself.
Sample unit:
The sample units will be individuals who have bought a soft drink from outlet.
Sample size:
A sample size of 100 to 150 has been taken into consideration with about 10
samples to be taken from each outlet or place. The samples should be such
that there is an adequate ratio of age group and gender.
Data collection tools:
Primary data and secondary data has been used in data collection tools.
Primary data will be collected by preparing a questionnaire of 2 page and the
retailers will be requested to answer those questions. Secondary data is
collected through internet, website and books.
Analysis
The study will be analyzed using descriptive techniques. For this project we
will use measures of central tendency, measures of dispersion, regression,
correlation. Other statistical tools may also be used as and when required.
Expected outcomes
Towards the end of the research we are expected to find drink preferences
and drinking habit of soft drinks in a certain part of Jamshedpur. The study will
32
reveal the factors which influence the consumers the most and the least to
prefer a flavor.
KEY AREAS
The key area of my summer training was “PEPSICO STRATEGY OF SALES
& DISTRIBUTION AND PROMOTION” .The Company had divided his retail
outlets on the basis of area wise and character wise.
Each of the division is having mainly three types of outlets.
AREA WISE
: - The area of my summer training was Jamshedpur and
according to the company the whole training area was divided into three parts.
INNER CIRCLE: - These are the main selling point of a company. In inner
circle we mainly consider those selling point or retailers shops which
come under the main market area.
OUTER CIRCLE: - These areas are adjacent to the main market area,
which is a mixture of residential areas and market areas. In these areas we
mainly talk about those retailers shops, which are place d in the residential
areas and quite away from the main market..
OUTSKIRTS: - These areas are quite away from the main city and the
main market, or the interior areas of the towns.
CHARACTER WISE: - Again there is a division of outlets on the basis of
characters (type of work done by the retailers) and there are again three types
of outlets.
CONVENIENCE OUTLET:
- These types of outlets include general stores,
beetle shops, stationary shop, medical shop and such type of other shops.
GROCERY OUTLETS: - These types of outlets include grocery stores which
indulge in selling of foods and related things used in the home.
EATERY: - It includes restaurants, fast food joints, hotels etc.
33
MARKETING ACTIVITIES
INTRODUCTION:
Marketing needs a framework that begins and ends with the customer.
Marketing tools by themselves do not achieve marketing objectives. There is
an intermediate step between the deployment of marketing tools and the
achievement of marketing objectives. A marketing network consists of the
company and its supporting stakeholders (customers, supplier s, distributors,
retailers, ad agencies, and others). The operating principle is simple: build an
effective network of relationships with key stakeholders, and profits will follow.
A set of marketing tools the fir m uses to pursue its marketing
objectives are called marketing mix. These tools can be classified into four
groups which are called the four Ps
of marketing
MARKETING MIX
PRODUCT
PLACE
TARGET MARKET
PRICE
PROMOTION
34
The entire market in this case is divided into three parts viz.:
Route market

Home market

At work market
ROUTE MARKET
Outlets coming under this market cater to the needs of those customers who
are engaged in shopping, eating out in restraints, going to and from work, in
amusement center s etc. In simpler words this market is what we call the
bazaar.
HOME MARKET
Outlets coming under this market cater to the needs of those customers
who buy soft drinks predominantly for home consumption either by glass
bottles or pet bottles. The shops targeted under this category are those
which are located inside residential complex or are located nearer to the
residential areas. These shops predominantly sell pet bottles.
AT WORK MARKET
Outlets coming under this market cater to the needs of those customers who
are working in offices, factories etc. i.e., the outlets targeted are the canteens
mainly. The soft drink being a FMCG has a wider and scattered market.
Thus to enable concentrated effort of marketing activities in different scattered
market, for effectively setting the entire market is broken into the following
segments. Route market´ outlet in this market caters to these people who are
engaged in shopping, eating outgoing to and from work, in amusement centers
etc. Home
market:
outlets
in
this
market
cater
to
people
buying
predominantly for home consumption, either by case or loose bottles.
At work market: outlets in this market cater to people working in offices,
factories etc. An attempt is also made to make drinks readily and
convexity available all day long while people are actively working.
35
MARKETING MIX OF PEPSI (THE 7 PS)
A. PRODUCT:Pepsi is a soft drink and which is prepared with the help of carbonate, sugar
and water. During the process manufacturing first it sterilized, then it is packed.
But its other product are preparing by some fruit and other carbonate mix
water etc.
Product Line:
Name of product
Quantity
Color
Flavor
Pepsi
200ml
Burnt-sugar
Cola
Pepsi
300 ml
Burnt-sugar
Cola
Pepsi
600 ml
Burnt-sugar
Cola
Pepsi
1.2lt. , 2.0lt.
Burnt-sugar
Cola
Mirinda
200ml
Sunset
Orange
Mirinda
300 ml
Sunset
Orange
Mirinda
600 ml
Sunset
Orange
Mirinda
1.2lt. 2.0lt.
Sunset
Orange
Slice
200ml
Yellow
Mango
Slice
250ml
Yellow
Mango
Slice
300ml
Yellow
Mango
Slice
500ml
Yellow
Mango
Slice
1200ml
Yellow
Mango
7-UP
200ml
Colorless
Lime
7-UP
300 ml
Colorless
Lime
7-UP
600 ml
Colorless
Lime
7-UP
1.2lt. , 2.0lt.
Colorless
Lime
Mountain Dew
200ml
Colorless
Lemon
Mountain Dew
300 ml
Colorless
Lemon
Mountain Dew
600 ml
Colorless
Lemon
Mountain Dew
1.2lt. , 2.0lt.
Colorless
Lemon
Soda
300ml , 500ml Colorless
……….
36
PACKING:The packet of Pepsi is different types like 200ml. to 2lt. it is only on Pepsi
product and other product are same but only Slice soft drinks is slightly
different of the other produce. It packaging size is like 250ml, 500ml, and 1.2lt
sizes this types.
SERVICES:Any kind of damage, spoiled or expired are return back if necessary.
B.
PRICE:-
Pepsi products are 7 types and its name is Pepsi, Mirinda, Mountain Dew,
Slice, 7 up, Nimbooz and Aquafina. All these products are different types of
size and different packaging. If we will see its price of product are same except
only Slice and Aquafina.
LITRE:- 200m.l
250 m.l 300m.l cane ½ lt
600
1lt 1.2lt 2lt
Rs:-
12.00
27
38 55
8/9/10.00
13.00
16
25
PRICE IN MAY 2012
Premium
Volume
Price/case
Pepsi
200ml
166
Pepsi
300ml
282
Soda
300ml/600ml
174/336
Slice
500ml/250ml
632/282
Slice
1200ml
615
Mountain Dew
600ml/200ml
656/212
Aquafina
1lt.
158
Mountain Dew
2lt.(53,65)
442,540
Pepsi
600ml/1lt.
608/418
Pepsi
2lt.(53,65)
442,540
Mountain Dew
200ml
212
Slice
250ml
282
37
65/53
C.
PROMOTION:-
Promotional activities play a key role in the entire marketing effort being
carried out by S.M.V. Beverages which are in sync with those of PepsiCo
India. These promotional activities generate more sales as well as create a
good image of the product in the mind of the customer.
The promotional tools used by SMV Beverages for its marketing activities
are

Point of sale display

Incentives to retailers

Sales promotion through sponsoring special events

Sales promotion through various schemes

Advertising
If we will say about the promotion is like that communication and
it depends on the advertisement, personal selling, public relation, direct
marketing, and sales promotion .
1.
Sales Promotion:Sales promotion is done by company by different schemes to the
distributor, retailers and customer. For example: buy one case, get 2 or 3
PEPSI, some new prizes, etc
2
Advertisement:A very important part of advertising is to decide the medium of
advertising and how much to spend on each medium. The different mediums
used by Pepsi are:

TV

Hoarding

Newspaper/Magazines
Out of these Pepsi invests heavily in advertising through TV. Brand
ambassadors of Pepsi include film stars, cricketers and other sport persons.
38
PepsiCo gives these brand ambassadors hefty sums running into many crores
to endorse their brands.
Some of the brand ambassadors of PepsiCo
associated with the different brands are:
Ranvir Kapoor - Pepsi
M.S.Dhoni - Pepsi
Kaitrina Kaif - Slice
Asin - Mirinda
Sharman Joshi - 7up
Harbhajan singh- Pepsi
Virat kohali- Pepsi
The Pepsi product is different types and scheme offers is different types. The
Pepsi, Pepsi Gold advertisement is scheduled in different types; Company
is providing its scheme offer is different types. In the summer times (March to
July) and the other one is August to October.
1. There are more than 50 channels we have seen advertisement
program of Pepsi and other products of the soft drinks on the T.V and
other areas. So that whichever channels we are watching, Pepsi was always
present.
2. It covers almost all channels and important programmers of these
channels.
3. Posters, stickers, leaflets are given in different languages to
make understand different people.
39
1. PUBLIC RELATIONS : In spite of all these things, Pepsi also launch special gift packages with
corresponding design introduced for the occasion both Pepsi and other
products at many locations across the country.
2. DIRECT MARKETING :Direct marketing is done with the help of sales personnel, who takes order
from the house and deliver the stocks.
3. SALES FORCE :Under each distribution, sales personnel are appointed who looks over the
sales of Pepsi and problems regarding the sales.
D.
PLACE: -
In India there are different types of franchise are having in the country. One is
having in the 8 s m.v beverages Pvt. Ltd. Adityapur Jamshedpur Jharkhand.
This franchise of Pepsi co. is distributing in side of the Orissa, Jharkhand,
Bihar in different areas.
E.
PEOPLE: The attitudes of staff
 Training of staff
 Internal relations
 The observable behavior of staff
 The level of service-mindedness in the organization
 The consistency of appearance of staff
 The accessibility of people
 Customer - customer contacts
40
F.
PROCESS: The manner in which the service is delivered
 Degree of customer contact
 Quality control standards
 Quality assurance
 Payment of method (degree of convenience)
 Queuing system for customers
 Waiting times
G.
PHYSICAL: The environment´ or atmosphere in which the service is delivered
 Buildings, Furnishings/decor , Layout
 Goods associated with the services e.g. carrier bags, tickets,
brochures
 All the above can help shape customers perceptions of the service
41
CHAPTER:-4
 EDS
 PLAN-O-GRAM
 SWOT ANALYSIS
42
EVERY DEALER SURVEY (EDS)
The Every Dealer Survey Commonly known as EDS. EDS is made every year
by the company. This survey is done every year by the company so that
complete awareness about the retailers and there attachment with the
company is observed. The data of EDS helps in knowing the company’s
position among the competitors as well as the competitor’s position.
The assessment is done in following ways:
The format of EDS is given as under:

Outlet name

Address of Outlet

Channel(category of Outlet)

Which type Outlet(PI,CCX, Mix)

Visi cooler condition

Prominent Location(yes or no)

Charged (How much charge the visi cooler with products)

Volume

Area
During the survey of EDS I faced the various types of Dealers
problems and them want . I have tried to visit each and every outlet
and personally interviewed them. In order to find the market share of
Pepsi. I have conducted a survey at many areas of Jamshedpur.
The number of outlets, which are covered by me in different area of
Jamshedpur, are following:-
S.NO.
Location(Jamshedpur)
01
Baridih
18
02
Bistupur
24
03
Sonari
21
04
Jugsalai
47
05
Mango
29
43
No. of outlets
06
Toyladungri
23
07
Telco
22
08
Pursudih
24
09
Adityapur
19
10
sakchi
16
Distribution Effectiveness:
From the outlet survey we can find out the number of outlets and the
stock and the other details. Non buyers also be located. Activation of non
buyers should be done immediately. With the above knowledge on can
increase the number of routes to get increased dealers coverage and
hence also increased more effective sales. Also details of this have help to
check upon the route selling of salesman, so that we can control them by
closely monitoring their performance.
How to increase distribution effectiveness:

After the above survey, the company can improve the distribution
network.

Immediately activeness of non- buyers.

Improve the dealer coverage.

Increase the realignment of routes.

Better control thorough route card.

Availability of goods on time.
Therefore, Every Dealer Survey´ is important keeping in mind that
distribution forms the major marketing activity in our industry and also
that through these survey one acquires knowledge of the market. It should
also be added here that continuous dealer surveys are required because of the
following reasons.
_ As our turn over increase we require skills to tackle problem and dealer
survey help in acquiring first hand as to use the skills effectively.
_ With our increased growth, investment of money are increased for various
marketing inputs e.g. case stock, advertising, merchandising etc. and by
44
survey we can get an indication of the areas in which investment should
be made to get the maximum benefits.
Importance of EDS (every dealer survey):
Market Knowledge:
Dealer survey gives the total profile of the market by knowing:

Location of outlet.

The type of outlet.

Number of dealer who keep Pepsi and coca cola and comparing
the stock and awareness of brand.

Take the information about distribution process of company.

Take the information to dealer that which brand of product more sell or
popular.

Gather the information about scheme which is given by company to
retailers.

The marketing inputs with respect to:i.
Advertising
ii.
Visi-cooler size
iii.
Customer service
Though PepsiCo has entered the market only 19 years ago but it
has captured a big market share and ends the monopoly of coca cola,
which has ruled for 13 years. This survey enables us to know:

How many exclusive outlets of PepsiCo, Coca cola and how many
mixed outlets of both brands are there in a particular market segment?

What are the promotional kits presents at all of these three types of
outlets provided by PepsiCo and Coca cola?

What are the gaps? I.e. what are those promotional tools, which can be
used to increase the sale of PepsiCo?

How retailers can be motivated to sale PepsiCo products instead
of Coca cola?
45
Apart from these, this survey also provide us the information
about the sales every outlets. And this report is useful for planning or taking
decision about how much amount should be spent for sales promotion for each
outlet.
From these aspects we can know how good we are in the market place
and those areas where we are lacking. It also helped to found that in some
place or areas where only the competitor brand available, then by the help of
survey we can find out the reason behind non availability of PepsiCo product
in that specific area. The knowledge of case stock will indicate our ³case- in
trade´ and that of competitors. This will also indicate our case velocity´ which
helps to plan our bottle as well as whether our distribution is effective or not. If
our case stock is low then I may decide upon a case stocking´
campaign. Therefore, appropriate marketing strategies can be worked out
depending upon the findings.
PLAN- O- GRAM
PEPSICO STRATEGY
PepsiCo provides visi coolers (Refrigerators fitted with glass door)
to Pepsi outlets, so that the retailers can provide chilled Pepsi drinks to
consumers.
This also increases the sale of Pepsi products. Visi coolers are
of various sizes for instance 165 , 200 , 220 , 300 , 320 , 400 , 440 , 650 ,
1200 and so on. Plan-O-Gram is the process of filling of visi cooler with
the Pepsi, and other Pepsi products i.e. 7UP, Mirinda, Slice, Mountain
Dew, Aquafina, and Tropicana fruit juice according to the sequence
prescribed by PepsiCo.
As per the research conducted by PepsiCo, Pepsi is the most selling
brand followed by 7Up, Mirinda, Mountain Dew and Slice. And on the basis of
this research PepsiCo has developed a sequence of different brands for
filling up the visicooler and also for placing in to the shelves. Sequence is
as under.
Pepsi ¾ 7Up ¾ Mirinda ¾ Mountain Dew ¾ Slice ¾ Aquafina Pepsi
46
products are available in glass bottles, pet bottles, metal cans and tetra packs.
The number of bottles, cans and packets filled in visi coolers varies as
per the size and capacity of the visi-cooler.
The figure in the next page
shows different brands, sequentially filled in a visi-cooler.
Objectives :
 To know the distribution strategy adapted by the organization
 To arrange the products of Pepsi in visi-cooler as per the guidelines of
PepsiCo.
 To know the response of the dealer regarding the products of PepsiCo.
 Consumers buy what they see in the retailing. i.e. to attract consumers
by displaying their favorite brands or to help the consumers in finding
their favorite soft drink flavor or brand.
 To attract consumers by displaying different brands.
 To find out the factors that influences the consumer’s preference of a
particular flavor of soft drink.
 To find out the market share of PepsiCo with respect to coke in terms
of WARM STOCK,CHILLED STOCK AND EMPTY STOCK .
 To motivate the retailers for effective utilization of visi-cooler for
selling PepsiCo brands.
 To analyse the problems of retailers and customers.
 How many outlets are there which are covered with glow sign board,
hanger and flexi board.
47
Products are charged according to the
P-O-G
48
PepsiCo visicooler
Pic-1
pic-2
Pic-3
pic-4
49
Procedure
Visi-cooler plan- o-gram (P-O- G) includes the following three processes.
I.
II.
III.
l.
Visi pure and visi cleaning.
Charging.
Plan o gram.
Visi pure and visi cleaning:
Sometimes retailers use to keep products like chocolates, ice creams,
and other substitute and competitors products like fruity, jumpin, chilled milk,
curd , and coco cola products in the visi cooler. These products grab the
places of Pepsi, again this increases the selling of substitute products. Here
visi pure means, removing all items except Pepsi from the pepsi visi-cooler.
And visi cleaning is simply Cleaning of visi cooler with a duster . Visi cleaning
helps to keep the products clean and also attract the consumers.
ll.
Charging:
This process involves the transfer of Pepsi from warm stock to cold
stock. Or in other words charging is filling of visi-cooler with PepsiCo products
from the stock available at the outlet. This helps in following ways,

Helps in effective utilization of the visi-cooler.

Helps in maintaining the stocks of chilled pepsiCO products every time.

Attract consumers.

Helps in keeping the visicooler pure.

Increases sale of pepsiCO.
Bottles/cans/tetra packets are first cleaned with a clean duster and dusts are
removed and then filled into the visi-cooler.
lll.
Planogram:
This
is
a
process
which
50
involves
sequentially
placing
of
bottles/cans/tetra packs of different flavors or brands in the visicooler. The
sequence of different flavors or brands is prescribed by Pepsico, and it is
discussed earlier. Plan o gram helps in following ways,

Helps the consumers in finding their favorite flavor or brand.

Attracts consumers by displaying different brands.

Promotes in selling all flavors or brands.

Acts as window display in the outlets.
Steps for plan-o-gram during 2 time and onward visits.

Step 1: Check the cooler.

Step 2: Determine the number of bottles of each brand or flavor required to
fill the cooler according to the P –O- G sequence.

Step 3: Clean the bottles/cans/tetra packs with a duster.

Step 4: Place the products in lower shelve first.

Step 5: Maintain a gap of 2 Inches between the bottles and the upper
shelve.

Step 6: Repeat this process.

Step 7: Charge the products according to the prescribed sequence of P-OG.

Step 8: Ensure that cooler is 100% charged.
How retailers are motivated to maintain P-O-G, and visi pure?
Plan o gram and making the visi cooler pure is the job responsibility of
merchandiser. A merchandiser is a person who visits the outlets on daily
basis. He checks the visi cooler, makes it pure and charges the product
according to the plan o gram.
But, sometimes retailers use to keep other
products also (non pepsi products) in the visi cooler provided by Pepsico and
they do not show any interest to follow the plan o gram.
retailers
to
follow
plan o gram,
PepsiCo
So to motivate
provides
attractive
incentive/packages to the retailers.
I did P-o- G for two weeks in two different market areas Dimna road mango
51
during my training period. The P -O-G reports of these two areas are given in
the next pages.
Problems, we faced during P-O- G:
1.
Unavailability of all flavors at some outlets.
2. Technical problems of visicooler, such as cooling problem. Cooler was not
working.
3.
Some retailers were not interested for P-O-G.
4.
Some outlets use to sale only few flavors or brands of PepsiCo and not all.
How we solved those problems?
During the training period for P-O-G, the problems faced are mentioned
And with the help of the guide and direction of the C.E (Customer Executive)
of the area, the problems are solved

When there was a shortage of any flavor at any outlet, we informed
to the respective distributor to supply that flavor.

After getting information from the concerned C.E, technical people solved
the technical problems of visi coolers at outlets.

Some retailers were not interested for P-O-G. To motivate them for the
same we explained the benefits of P-O-G and various skims which were
available for the retailers for P-O-G and maintaining visi pure. Pepsi Cool
Zone is one of such skim, which was available during that period of time for
the retailers.

Outlets, where only few flavors or brands of PepsiCo are sold not all the
flavors, we placed one available flavor in each shelve of the cooler. e.g.
Beer-Bar, restaurants, where only three brands of PepsiCo are sold; which
are Pepsi, 7Up, Soda and water.
After P-O-G, the assignment was to take the orders of products e.g; Pepsi,
Mirinda, 7UP, slice, mountain dew etc in many area of Jamshedpur. Area’s
name:
52

Parsudih

Karandih

Jamco

Baridih

Bhalubasa
SWOT ANALYSIS
In order to get clear understanding of the position of Diet Pepsi in the various
markets we did a SWOT analysis from the data obtained from the survey
and the various retailer interviews
STRENGTHS
PACKAGING AND PRICING :- Pepsi has the advantage of having provided
the same kind of health based carbonated drink the Slim Diet Pepsi Can
which in comparison to the Diet coke is a much more attractive offering
because it is slim sleek equally healthy and way cheaper.
DISTRIBUTION :- As already mentioned Pepsi India has one strongest and
most efficient sales and distribution networks not only in India but also
throughout the globe. PepsiCo in India is the relationship the company and its
constituents have with the channel partners. Also the recently introduced
retailer benefit schemes such as the gold card membership and other
free gifts and offerings not only motivate the retailers but also helped us
create visibility for the Slim Diet Can range in a profound. The experience of
working with people who welcome us with a smile rather than a frown will
always be remembered.
NON-CARBONATED:- The non-carbonated segment is dominated by Pepsi;
Tropicana is the market leader in fruit juices. In the mineral water segment,
Aquafina clearly outsells Kinley without any fuss.
Bottling ± PepsiCo has the advantage of being in partnership with the largest
bottler in India, the R K Jaipuria Group. RKJ Group controls almost 65% of the
53
bottling operations of PepsiCo in India. At times this is also seen as a Pepsi
controls almost 60% market share in the Cola segment.
WEAKNESS:
SECOND MOVER DISADVANTAGE:- Diet Pepsi Cola does have the
first mover advantage which Diet Coke has and this may prove to be a major
shortcoming also in the Agra Market no Extensive efforts have been made to
popularize it.
Brand On a comparative scale Diet Coke proves to have a better
brand image in customers mind than. This compels to incur extra expenditure
in Advertising, Promotions and Sponsorship.
MCDONALDS:- This is one of the most important reason why Diet
Coke outsells Pepsi worldwide and specially in the United States. Similarly, in
India Diet Pepsi may suffers in sales because of institutional sales. Now Pepsi
is trying very to bridge this gap in the near future.
EXPENDITURE:-
Right from the very beginning Pepsi has hired
the biggest and the most expensive stars in the country as its brand
ambassadors and has spend heavily on advertising which has affected its
balance sheet.
Visi-coolers:-
At presently this is one the biggest problems faced
by Pepsi. Pepsi is not able to get refrigerators in India so they have to
import it other namely Sri Lanka, Mauritius etc. Because of this, retailers are
facing lot of problems in visi-coolers. They are not able to get new
refrigerators, replacements for old ones, even the repair work takes lot of time
because at times even the spares are not available on time.
OPPORTUNITIES
Lowest Per Capita Consumption: - Even after almost decades of
presence in the market, there are growth opportunities for Diet Pepsi in India
as here the per capita consumption of carbonated beverages is one of the
lowest in the world.
54
Health Based: apart from its Juice Based drinks portfolio Pepsi can Use
the Slim Diet can to the maximum by promoting it as a health drink at Cheaper
prices.
THREATS:
NGOs:- NGOs like CSE can seriously hamper the sales and prospects
of companies operating in this industry. This happened during the pesticide
controversy involving both coke and Pepsi.
HEALTH:- Growing health awareness among people and some of ill
effects of carbonated beverages have pursued many people to switch
over to non-carbonated beverages that can seriously hamper the longterm prospects of the entire Industry and not Pepsi.
ENVIRONMENT:-
Environmental
concerns
are
often
raised
because of the massive amount of water extracted by the bottling plants
resulting in the drop in groundwater level which affects the local population
adversely. In India PepsiCo adopted the strategy of growth through
intensification. In the intensification strategy, it used market penetration by
developing one of the strongest sales and distribution network in the world and
utilizing it to the fullest.
Pepsi did market development by making the aware of the best
products available at their disposal, by using the best technology to
produce the products, by properly communicating with the customer, and
making the customer realize that he is important.
Pepsi also explored new markets by venturing new segments like fruit
based beverages, sports drinks, and snack food division. Pepsi expanded and
established itself in the market place by constantly developing new products to
the customers, like Tropicana, Gatorade, and Pepsi Blue. I n this way, Pepsi
was also able to effectively counter the threats posed by substitutes and new
entrant.
55
ANALYSIS
Following are the data acquired from questionnaire by taking 100 samples:
Q.1 Which brand of soft drinks you deal in?
a. PepsiCo
b. Coca-cola
c. Both
d. other
Brand
PepsiCo
Coca-cola
Both
Other
Sample
40
24
31
5
Other
5%
Brand
PepsiCo
40%
Both
31%
Coca-cola
24%
INTERPRETATION:
From the above data, I can conclude that around 40% of people like PepsiCo
product’s, 24% coke product’s, 31% both and 5% others products in
Jamshedpur.
56
Q.2 Which brand of cola provides you better facility?
a. PepsiCo
b. Coca-cola
c. Both
Brand
PepsiCo
Coca-cola
Both
Sample
51
24
25
Brand
Both
25%
PepsiCo
51%
Coca-cola
24%
INTERPRETATION:
From the above data, I can easily get to the conclusion that PepsiCo provides
better facilities in Jamshedpur.
57
Q.3 How many carats of Pepsi and Coca-cola you sell per day
in summer?
a. 0-1
b. 1-2
c. 2-3
d. More than 3
Sales per day
0-1
1-2
2-3
More than 3
Sample
12
24
26
38
Sales per day
More than 3, 38
40
35
30
2-3, 26
1-2, 24
25
20
15
0-1, 12
10
5
0
0-1
1-2
2-3
More than 3
INTERPRETATION :
From above data, It can be said that 38% of retailers sell more than 3 crates
in one day.
58
Q.4 Which company’s visi-cooler you have in your outlet?
a. PepsiCo
b. Coca-cola
c. own
d. Both
Visi-cooler
PepsiCo
Coca-cola
Both
Own
Sample
35
29
28
8
Visi-cooler
40
PepsiCo, 35
35
Coca-cola, 29
30
Both, 28
25
20
15
Own, 8
10
5
0
PepsiCo
Coca-cola
Both
Own
INTERPRETATION :
From the above data it is clear that 35 % of retailers use PepsiCo visi-cooler
in their outlets.
59
Q.5 Which company gives more schemes, PepsiCo or Cocacola?
a. PepsiCo
b. Coca-cola
Company
PepsiCo
Coca-cola
Sample
80
20
Company
Coca-cola
20%
PepsiCo
80%
INTERPRETATION:
From the above data, it is clear that 80% of retailers get schemes from
PepsiCo.
60
Q.6 Which kind of soft drink your customers prefer to drink?
a. Juice-based
b. Cola-based
c. Milk-based
Customer’s preference
32
54
14
Base
Juice-based
Cola-based
Milk-based
Customer's preference
60
Cola-based, 54
50
Juice-based, 32
40
30
20
Milk-based, 14
10
0
Juice-based
Cola-based
Milk-based
INTERPRETATION :
From the above data, it is clear that 54% customers like to prefer cola-based
drink and 32% juice base and 14% milk base.
61
Q7. Which type of customers like soft-drinks according to
you?
a) Student
b) Business
c) Petty traders
d) Self employed
e) Supervisors/Clerical
f) Junior Executive Level
g) Middle Senior Level
h) Housewife
Type of customer
Student
Business
Petty traders
Self employed
Supervisors/Clerical
Junior Executive Level
Middle Senior Level
Housewife
Sample
39
15
12
4
7
13
8
2
Sample
45
40
35
30
25
20
15
10
5
0
Student, 39
Junior Executive
Level, 13 Middle Senior
Supervisors/Clerica
Level, 8
l, 7
Self employed, 4
Housewife, 2
Business, 15
Petty traders, 12
INTERPRETATION :
62
From the above data, it is clear that 39% of students like soft-drinks , 15% of
business person like soft-drinks and 2% housewives.
Q8. Which kind of drink you prefer to have?
a) Packaged
b) Unpackaged
Customer’s preference
85
15
Drink
Packaged
Unpackaged
Customer's preference
Unpackaged
15%
Packaged
85%
INTERPRETATION :
From the above data it s clear that 85% of retailers prefer to buy packaged
drinks.
63
Q9. When do you go to have a drink, do you have pre
determined flavor in the mind?
a) Yes
b) Choose on availability
c) Choose by coldness
Customer’s preference
64
10
26
Flavour is pre-determined?
Yes
Choose on availability
Choose by coldness
Customer's preference
70
Yes, 64
60
50
40
Choose by
coldness, 26
30
20
Choose on
availability, 10
10
0
Yes
Choose on availability
Choose by coldness
INTERPRETATION :
From the above data, it is clear that 64% of customers have predetermined
flavor in their minds before having drinks.
64
Q10. On selecting a particular flavor, which of the flowing
attributes do you consider for? Please rank them in order.
a) Coldness
b) Availability
c) Advertisement
d) Taste/Quality of food
e) Retailer suggestion
f) Offer
Customer’s preference
6
23
41
8
10
12
Basis
Coldness
Availability
Advertisement
Taste/Quality of food
Retailer suggestion
Offer
Customer's preference
45
Advertisement, 41
40
35
30
Availability, 23
25
20
Retailer suggestion, Offer, 12
Taste/Quality of
10
food, 8
15
10
Coldness, 6
5
0
Coldness
Availability
Advertisement Taste/Quality of
food
Retailer
suggestion
Offer
INTERPRETATION :
From the above data, it is clear that majority of the customers around 41% of
customers are influenced by an advertisement before buying a particular
flavor of soft-drinks
65
Q11. What is the customer’s weekly average expenditure on
Soft drinks items?
a) Less than 50
b) 50-99
c) 100-199
d) More than 200
Customer’s weekly expenditure
43
27
21
9
Amount (Rs.)
Less than 50
50-99
100-199
More than 200
Customer's weekly expenditure
50
45 Less than 50, 43
40
35
30
50-99, 27
25
100-199, 21
20
15
More than 200, 9
10
5
0
Less than 50
50-99
100-199
More than 200
INTERPRETATION:
From the above data, it is clear that 9% of customer’s spend more than 200
Rs. On soft-drinks items and 43% of customer’s spend less than 50 Rs. On
these items.
66
Q.12 Was the outlet maintaining the glow sign board, hanger
and flexi board effectively?
a. YES
b. NO
Boards Sample
YES
75
NO
25
BOARD
NO
25%
YES
75%
INTERPRETATION:
From the above data, Graph is representing the results for outlets maintaining
glow sign board, hanger and flexi board.
67
CHAPTER:-5
 FINDINGS
 RECOMMANDATIONS
 CONCLUSION
68
FINDINGS :
 Pepsi has 54% market share compared to coca cola in Jamshedpur,
but they are very close to each other.
 From Coca Cola products, Thumbs-up and Sprite are market leaders
and in Pepsi brand, Slice is the no.1 selling product.
 The dealers want a soft strategy for replacement of leakage bottle.
 According to retailers Pepsi gives more schemes and gifts compared
to coca cola.
 Most of the dealers want glow sign board, hanger and flexi board and
visi cooler for long time.
 Over the visit to market what I observed is the counters which has visi
coolers in front of the store gives more sales.
 In my area of working Pepsi has more execlusive counters than coke
but no. of mix outlet is the maximum.
 PSR is not well trained compare to coke.
 No any regular visit in retailor shop for filling the order.
 As per the study some dealers want to sell the only pepsiCo product.
69
RECOMMANDATIONS
The following recommandation that can be implemented to increase
consumer satisfaction and profitability of the company.
 Distributions of product should improved during summer as this is the peak
time of the business.
 The PSR should be trained and to be courteous with the retailer.
 P-O-G should be done reguraly as it pushes sales of the product as well
as gives more visibility of the product.
 It should depend on the parnership aggrement with supplier and distributer
and make them feel as part of the company.
 PepsiCo visi cooler and racks should be made easily available for the
retailers to serve the purpose of visibility as they say “ JO DIKHEGA
WOHI BIKEGA”
 More emphasis should be given to exsisting retailers at the same time new
retailers are to be encourged to sell Pepsi.
 They should be Regular visit of customer representative and visi-cooler
technician in out lets.
 Merchadising facilities should be fulfilled on time like glow sign board, flexi
board and banners etc.
 The criteria to provide glow sign and visi-cooler should be changed and
seprate department should handle it.
 Supply should be prompt and from time to time customer problems should
be solved.
 There should be more brand awarness specialy in rural areas.
 Customer excutive should always take the feedback from the retailer about
the service and product.
70
 Supply and distribution should improved of pepsiCo products during
summer.
CONCLUSION
Everything in this world is made to utilize properly but should be reached to
the proper person or to the proper utilize areas. Otherwise the value added to
those things become in vein. As there is a proverb that says, “ FAR FROM
EYE, FAR FROM HEART”.
The marketing activities of SMV beverages are good but there is a need of
some promotional activities. Beside this there is certain more conclusions
which are as follows:
Pepsi has got far better position and giving the tough competition to its
competitor coke.

Company directly supply the product to retailers.

. The distribution system creates value added to all most all products.
Thus marketing role plays a very important role in achieving the objectives of
an organization. According to Drucker, “ Both the market and the
distribution chennels are often more crucial than the product.” They are
primary and the product is secondary. In an economy like that of India, where
marginal shortages can lead to disproportation distortion in prices, a
dependable and efficient distribution system is very much essencial All
from
the above study not withstanding its restructuring efforts, pepsi still had some
distance to cover to lead the market.
71
BIBLIOGRAPHY
Books referred:
 Principles of Marketing by Philip Kotler, Gary Armstrong, Prafulla Y.
Agnihotri, and Ehsaan Ul Haque
Magazines referred:
 India Today
 Business World
Websites referred:
 HTTP://WWW.PEPSICO.COM
 HTTP://WWW.GOOGLE.CO.IN
 HTTP://WWW.WIKIPEDIA.ORG
FRIENDS & SENIORS
TELEVISION
72
ANNEXURE
73
QUESTIONNAIRE
I had prepared questionnaire for Retailers during the survey.
Questionnaire for retailers:

Name of shop/outlet

Address/Location

Type of outlet
Q.1 Which brand of soft drinks you deal in?
a. PepsiCo
b. Coca-cola
c. Both
d. other
Q.2 Which brand of cola provides you better facility?
a. PepsiCo
b. Coca-cola
c. Both
Q.3 How many crates of Pepsi and Coca-cola you sell per
day?
a) 0-1
b) 1-2
c) 2-3
d) More than 3
Q.4 Which company’s visi-cooler you have in your outlet?
a. PepsiCo
b. Coca-cola
c. own
d. Both
Q.5 Which company gives more schemes, PepsiCo or Cocacola?
a. PepsiCo
b. Coca-cola
Q.6 Which kind of soft drink your customers prefer to drink?
a. Juice-based
b. Cola-based
c. Milk-based
Q7. Which type of customers like soft-drinks according to
you?
a) Student
b) Businessman
74
c) Petty traders
d) Self employed
e) Supervisors/Clerical
f) Junior Executive Level
g) Middle Senior Level
h) Housewife
Q8. Which kind of drink you prefer to have?
a) Packaged
b) Unpackaged
Q9. When you go to have a drink, do you have pre determined
flavor in the mind?
a) Yes
b) Choose on availability
c) Choose by coldness
Q10. On selecting a particular flavor, which of the flowing
attributes do you consider for? Please rank them in order.
a) Coldness
b) Availability
c) Advertisement
d) Taste/Quality of food
e) Retailer suggestion
f) Offer
Q11. What is an average customer’s average weekly
expenditure on Soft drinks items?
a) Less than 50
b) 50-99
c) 100-199
d) More than 200
75
Q.12 Was the outlet maintaining the glow sign board, hanger
and flexi board effectively?
a. YES
b. NO
76