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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
A SUMMER TRAINING PROJECT REPORT ON
“DE LER SURVEY TO M P WIDTH ND DEPTH OF V RIOUSBR NDS OF PEPSICO IN LL H B D”
SUBMITED TOWARDS PARTIAL FULFILMENT OF
MASTER OF BUSINESS ADMINISTRATION
FACULTY GUIDE INDUSTRY GUIDE
Mr. Vibhore Khandelwal Mr. Sugandh Tripathi
(A.S.M PepsiCo)
Submitted By-
Prashant Kumar Chaubey
Lloyd Institute of management and technology
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
PREFACE
The MBA programme is well structured and integrated course of business studies.
The main objective of practical training at MBA level is to develop skill in student by
supplement to the theoretical study of business management in general. Industrial training
helps to gain real life knowledge about the industrial environment and business practices.
The MBA programme provides student with a fundamental knowledge of business and
organizational functions and activities, as well as an exposure to strategic thinking of
management.
In every professional course, training is an important factor. Professors give us
theoretical knowledge of various subjects in the college but we are practically exposed of
such subjects when we get the training in the organization. It is only the training through
which I come to know that what an industry is and how it works. I can learn about
various departmental operations being performed in the industry, which would, in return,
help me in the future when I will enter the practical field.
Training is an integral part of MBA. And each and every student has to undergo
the training for 60 days in a company and then prepare a project report on the same after
the completion of training.
During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical knowledge and
the practically in the real life.
In todays globalize world, where cutthroat competition is prevailing in the market,
theoretical knowledge is not sufficient. Beside this one need to have practical knowledge,
which would help an individual in his/her carrier activities and it is true that ―Experience
is the best teacher”.
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ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for PepsiCo
Holdings India Limited. It has been an enriching experience for me to undergo my
summer training at PEPSICO, which would not be possible without the goodwill and
support of the people around. As a student of LIMT I would like to express my sincere
thanks to all those who helped me during my practical training program.
Words are insufficient to express my gratitude toward Mr . Sugandh Tripathi, the
Assistant Sales Manager in PepsiCo Holdings India Limited and Mr. Vibhore
Khandelwal Project Guide.
My heartfelt thanks go to all who helped me to gain knowledge about the actual
working and the processes involved in various departments.
However, I accept the sole responsibility for any possible error of omission and
would be extremely grateful to the readers of this project report if they bring such
mistakes to my notice.
Thanking You
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
INDEX
SR. NO. CONTENT PAGE NO.
1. EXECUTIVE SUMMARY 6
2. OBJECTIVE OF SUMMER TRAINING 7
3. INTRODUCTION OF PROJECT 8
4. HISTORY OF COMPANY
8-10
5. COMPANY PROFILE 11-20
6. GUIDELINES & PRINCIPLES 21
7
STRATEGY
22-27
8
VISION & MISSION
28-43
9
PRODUCT COMPARISON
44
10
DISTRIBUTION CHANNEL
44-52
11
ADVERTISING & PUBLICITY
53-54
12
RESEARCH METHODOLOGY
54-63
13
STATISTICAL REPRESENTATION
63-72
14
DETAILS OF SURVEY
73
15
PROJECT ANALYSIS
74
16
. FINDING & SUGGESTION
75-77
17.
LIMITATION & CONCLUSION
78
18.
QUESTIONNAIRE
79
19
BIBLIOGRAPHY
80
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EXECUTIVE SUMMARY
I, Prashant Kumar Chaubey felt privileged to be a part of LLOYD
Institute of Management and Technology, Greater Noida. I did my summer internship
training in PepsiCo Holdings India Limited a FMCG sector company. My project title is
―Each Dealer Survey to Map Width and Depth of Various Brands of PepsiCo in
Allahabad”.
The project’s basic objective is to analyz the demand of various brands’
product of PepsiCo and the area covered by the other competing product in the market
and the number of outlets under the distributorship of PepsiCo Holdings India Limited.
As compared to their brands.In this project I surveyed in areas of Allahabad and asked selected questions to the
outlet owners who were either not selling Pepsi products or selling in very less/high
quantity.
Out of my project I learnt these things:
Pepsi should understand the expectations of people If one wants to grow in FMCG
sector one should keep the following factors in mind that the products are easily available
to the consumers, to improve the quality of products from time to time, competitive
services should be provided to the retailers, the price of the product should be low andlast but not the least the visibility and the promotional strategy should be such that it hits
people’s mind.
OBJECTIVE OF THE SUMMER TRAINING
TOPIC: - “Each Dealer Survey to Map Width and Depth of Various Brands of PepsiCo
in Allahabad”
During my summer training I have worked on the topic “Each Dealer Survey To
Map Width And Depth Of Various Brands Of PepsiCo In Allahabad” In Pepsi Co India
Holding Pvt. Ltd the work of Survey was given to me. I have done this survey keeping
in mind the following objectives
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Which I have mentioned below
Study those outlets which are not promoting Pepsi products in the areas covered in
Allahabad
To analyze the reasons of not selling Pepsi at retailers level.
To study the retailers satisfaction.
To find out the ways to enhance the sale of Pepsi.
INTRODUCTION
Beverage industry is one of the fast growing industries in India .it can be divided
into two sections i.e. carbonated and non-carbonated. The carbonated drinks that can be
further classified into cola, lemon orange, mango, and apple segments.
Marketing includes all the activities like promotion, distribution, advertising etc. to
fulfill all the segments of consumers. Marketing is also to convert social needs into
profitable opportunities. So this topic provides all the essentials to theoretical knowledge
with practical knowledge and to inculcate the efficiency. It is also requirement for the
company to improve their service and product quality for achieving their ultimate goal.
As far as the soft drink market is concerned, it is facing the cut throat competition
because of the availability of a large number of indirect as well as direct competitors.
Single company offers the soft drink to the market in different taste and flavors. In this
industry entire range of flavors are produced by other competitors also. More often it
becomes impossible to differentiate between the same flavors of two different brands,when served in plane container, range also. All these factors together make the situation
complicated. besides both corresponding brands have the similar price.
COMPANY’S HISTORY
BEVERAGES
Pepsi Cola Company
Caleb Bradham, a New Bern, N.C. druggist who first formulated Pepsi-cola,founded Pepsi Co.’s beverage business at the turn of the century i.e. in the year 1890. A
young phannacist Called Bradham began experimenting in 1890 as a cure for dyspepsia
(indigestion) with combination of spices, 1 juice and syrups and created a refreshing
new drink to serve his customer. He succeeded beyond all expectations as he invented
the new beverage now known around the world as "PEPSICOLE"
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In 1902, he launched the Pepsi Cola Company in the back room of pharmacy,
and applied to U.S. patient office for Trade Mark. The business began to grow and on
June 16, 1993, Pepsi-Cola trademark was officially registered with U.S. office.
Bradham believed marketing would be the key to
PEPSI-COLA prosperity and in his first year of business he spent $1900 on advertising
when he sold 40,000 liters of syrup. In 1905 he built Pepsi fits bottling plant. Three
more plants followed soon and in 1907, he was selling 50,000 liters year.
Troubles started at the end of the First World War when Bradham over stocked
sugar at high price, which subsequently dipped in 1920. By 1922, the company was
insolvent by 1923, it went bankrupt and Bradham returned to pharmacy.
In 1931, the company went bankrupt for the second time. At this time Charles
Groth, president of a giant candy company both the trademark. His success came when
he offered a 12-ounce bottle at 5 cent while other colas were sold at the same price in 6
ounce bottles. In 1936, Pepsi has a $2 million net profit.
Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsi
and other Pepsi-Cola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew,
slice and Mugvrands- Account for nearly one third of total soft drink sales in the United
States, a consumer marker totaling about $56 billion.
In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. Today
Liption is the biggest selling ready to drink tea brand in the United States. Outside the
United States, Pepsi-Cola Company's soft drink operations include the business of even-
up International; Pepsi-Cola beverages are available in about 170 countries.
Pepsi-Cola began selling it products internationally in 1934 with its operations
in Canada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products
account for about a quarter of all soft drinks sold internationally. In addition to brands
marketed in the United States, Major products include Miranda and Pepsi Max.
Pepsi-Cola provides advertising, marketing, sales and promotional support to
Pepsi-Cola bottles and food service customers. This includes some of the world lovedand most recognized advertising. New advertising and exciting promotions keep Pepsi-
Cola brands young.
In 1940, history was made when the first advertising jingle was broadcast
nationally. The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
to the price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record
and was recorded into fifty-five languages.
In 1964, Diet Pepsi was introduced.
Competition
The Coca-cola Company has historically been considered PepsiCo’s primary
competitor in the beverage market,[ and in December 2005, PepsiCo
surpassed The Coca-Cola Company in market value for the first time in 112
years since both companies began to compete. In 2009, the Coca-Cola
Company held a higher market share in carbonated soft drink sales within
the U.S. In the same year, PepsiCo maintained a higher share of the U.S.
refreshment beverage market, however, reflecting the differences in productlines between the two companies. As a result of mergers, acquisitions and
partnerships pursued by PepsiCo in the 1990s and 2000s, its business has
shifted to include a broader product base, including foods, snacks and
beverages. The majority of PepsiCo's revenues no longer come from the
production and sale of carbonated soft drinks. Beverages accounted for less
than 50 percent of its total revenue in 2009. In the same year, slightly more
than 60 percent of PepsiCo's beverage sales came from its primary non-
carbonated brands, namely Gatorade and Tropicana.
PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the
U.S. snack food market, accounting for approximately 39 percent of U.S.
snack food sales in 2009.One of PepsiCo's primary competitors in the snack
food market overall is Kraft Foods, which in the same year held 11 percent
of the U.S. snack market share
THE BUSINESS
PepsiCo. Has a worldwide operation in 3 fields
Non Alcoholic beverage
Snack Foods.
Fruit Juices
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
Pepsi company profile
PepsiCo is a world leader in convenient snacks, foods and beverages, with revenuesof more than US$65.504 (2011) billion and over 285,000 employees.
PepsiCo is a world leader in convenient snacks, foods and beverages, with
revenues of more than US$ 66.504 billion (2011) and over 285,000 employees.
The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas
Beverages (PAB) and PepsiCo International (PI).
PAF includes Frito-Lay North America, Quaker Foods North America and all Latin
America food and snack businesses, including Sabritas and Gamesa businesses in
Mexico. PAB includes PepsiCo Beverages North America and all Latin American
beverage businesses. PI includes all PepsiCo businesses in the United Kingdom,
Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200
countries and generate sales at the retail level of more than $98 billion.
As of January 2012, 22 of PepsiCo's product lines generated retail sales of more
than $1 billion each, and the company’s products were distributed across more than 200countries, resulting in annual net revenues of $43.3 billion. Based on net revenue,
PepsiCo is the second largest food & beverage business in the world. Within North
America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.
Some of PepsiCo's brand names are more than 100-years-old, but the corporation
is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company, including Gatorade, in 2001.
PepsiCo offers product choices to meet a broad variety of needs and preference --from fun-for-you items to product choices that contribute to healthier lifestyles.
PepsiCo’s mission is ―To be the world's premier consumer products company
focused on convenient foods and beverages. We seek to produce healthy financial
rewards to investors as we provide opportunities for growth and enrichment to our
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
employees, our business partners and the communities in which we operate. And in
everything we do, we strive for honesty, fairness and integrity.‖
Shareholders
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock
Exchange in the United States. The company is also listed on the Chicago and Swiss
stock exchanges. PepsiCo has consistently paid cash dividends since the corporation
was founded.
Corporate Citizenship
At PepsiCo, we believe that as a corporate citizen, we have a responsibility to
contribute to the quality of life in our communities. This philosophy is expressed in our
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
sustainability vision which states: ―PepsiCo’s responsibility is to continually improve
all aspects of the world in which we operate – environment, social, economic -- creating
a better tomorrow than today.‖
Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder value
by making PepsiCo a truly sustainable company.
PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York, approximately 45
minutes from New York City. The seven-building headquarters complex was designed
by Edward Durrell Stone, one of America's foremost architects. The building occupies
10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens,
a world- acclaimed sculpture collection in a garden setting.
The collection of works is focused on major twentieth century art, and features
works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander
Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens
originally were designed by the world famous garden planner, Russell Page, and have
been extended by François Goffinet. The grounds are open to the public, and a visitor's
booth is in operation during the spring and summer.
PEPSICO BEVERAGES NORTH AMERICA (PBNA)
PepsiCo’s beverage business was founded 1898 by Caleb Bradham, a New
Bern, North Carolina druggist, who first formulated Pepsi-Cola.
Today, Brand Pepsi is part of a portfolio of beverage brands that includes
carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks,
isotonic sports drinks, bottled water, and enhanced waters. PBNA has well known brand
such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina
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water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana
Twister and Tropicana Season’s Best.
PBNA manufactures and sells concentrate for some of these brands to licensed
bottlers, who sell the branded products to independent distributors and retailers. PBNA
provides advertising, marketing, sales, and promotional support for its brands. This
includes some of the world's best-loved and most-recognized advertising.
In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-
to-drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-
drink coffee through a partnership with Starbucks.
Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging
business. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first
time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida
orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became
the company’s flagship product. PepsiCo acquired Tropicana, including the Dole juice
business, in August 1998.
So Be became a part of PBNA in 2001. SoBe manufactures and markets aninnovative line of beverages including fruit blends, energy drinks, dairy-based drinks,
exotic teas and other beverages with herbal ingredients.
Gatorade thirst quencher sport drinks were acquired by The Quaker Oats
Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is
the first isotonic sports drink. Created in 1965 by researchers at the University of
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Florida for the school's football team, "The Gators," Gatorade is now the world's
leading sports drink.
PepsiCo Beverages North America includes the United States and Canada.
LATIN AMERICA BEVERAGES
The Latin Americas Beverage business features a powerful suite of powerhouse
brands and distinct products tailored for the market. Gatorade outsells the nearest
competitor more than five to one and, in Sao Paulo---7UP H2Oh! --- a lightly
carbonated, is dominating the competition in its lead market.
PepsiCo Americas Foods
FRITO-LAY NORTH AMERICA
PepsiCo's snack food operations had their start in 1932 when two separate events took
place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food
product – a corn chip – and started an entirely new industry. The product was Fritos
brand corn chips, and his firm became the Frito Company.
That same year in Nashville, Tennessee, Herman W. Lay started a business
distributing potato chips. Mr. Lay later bought the company that supplied him with
product and changed its name to H.W. Lay Company. The Frito Company and H.W.
Lay Company merged in 1961 to become Frito-Lay, Inc.
Major Frito-Lay products include Lay’s potato chips, Doritos flavored tortilla
chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles
potato chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix,
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Lay’s Stax potato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito-Lay
also sells a variety
of branded dips, Quaker Fruit & Oatmeal bars, Quaker Quakes corn and rice
snacks,Grandma’s cookies, nuts and crackers. Frito-Lay North America includes
Canada and the United States
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QUAKER FOODS NORTH AMERICA
The Quaker Oats Company was formed in 1901 when several American pioneers
in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and
William Heston had established the Quaker Mill Company. The figure of a man in
Quaker clothes became the first
registered trademark for breakfast cereal and remains the hallmark for Quaker Oats
today.
In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner,
George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher,
known as "The Oatmeal King," had founded German Mills American Oatmeal
Company in 1856.
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Combining The Quaker Mill Company with the Stuart and Schumacher businesses
brought together the top oats milling expertise in the country as The Quaker Oats
Company.
The first major acquisition of the company was Aunt Jemima Mills Company in
1926, which is today the leading manufacturer of pancake mixes and syrup. Gatorade
was acquired in 1983.
In 1986, The Quaker Oats Company acquired the Golden Grain Company,
producers of Rice-A-Roni.
PepsiCo merged with The Quaker Oats Company in 2001.
LATIN AMERICA BEVERAGES
The Latin Americas Foods business includes operations in Brazil, Argentina,
Colombia, Peru and Venezuela. This business continues to grow organically and
through acquisitions like the Lucky snacks business in Brazil.
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PEPSICO INTERNATIONAL
PepsiCo International includes all PepsiCo businesses in the United Kingdom, Europe,
Asia, Middle East and Africa.Pepsi-Cola began selling its products outside the United
States and Canada in the mid-1930s, opening in the United Kingdom in 1936.
Operations grew rapidly beginning in the 1950s. Today, PepsiCo beverages are
available in more than 170 countries and territories. Brands include Aquafina, Gatorade
and Tropicana.
In addition to brands marketed in the United States, PepsiCo International brands
include Mirinda, Seven-Up and many local brands.
PepsiCo began its international snack food operations in 1966. Today, products are
available in nearly 170 countries. Often PepsiCo snack food products are known by
local names. These names include Gamesa and Sabritas in Mexico, Walkers in the
United Kingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and
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others. The company markets Frito-Lay brands on a global level, and introduces unique
products for local tastes.
PepsiCo. Has a worldwide operation in 3 fields
Non Alcoholic beverage
Snack Foods.
Fruit Juices
PepsiCo India Holdings Private Limited
PepsiCo, the world leader in convenient foods and beverages, welcomes you to a
community of over 157,000 employees spread over more than 200 countries and
territories across the globe with annual revenues in excess of $33 billion. As part of its
sustainable development initiatives, PepsiCo India has been a committed leader in the
promotion of rain water harvesting, water conservation recycling and the reduction of
effluent discharge. Thus, we seek to produce healthy financial rewards to investors as
we provide opportunities for growth and enrichment to our employees, our business
partners and the communities in which we operate. And in everything we do, we strive
for honesty, fairness and integrity.
Company Facts
Company Name:
PepsiCo India Holdings Private Limited
Industry:
Food & Beverage / Catering / Restaurant
Type of Company:
Private Limited Company, Foreign Based Company
Location:
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DLF Corporate Park, S Block, Qutab Enclave, Phase III Gurgaon 122 002
History
Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCo
entered India in 1989 and in the span of a little more than a decade, has grown to
become the country’s largest selling soft drinks company as well as dominant player in
the snack food segment (Frito-Lay is the leader in the branded potato chips market). To
support the operations are the group’s 38 bottling plants in India, of which 16 are
company owned and 22 are franchisee owned.
Product and Services
Pe psiCo’s mission is to be the world’s premier consumer Products Company
focused on convenient foods and beverages. The company seeks to produce healthy
financial rewards to investors as it provides opportunities for growth and enrichment to
its employees, business partners and the communities in which it operates. PepsiCo now
has many global brands, which include: Pepsi-Cola, Diet Pepsi, Mountain Dew (Diet &
Regular), Gatorade, Walkers, Lays Potato Chips, Doritos Tortilla Chips, Tropicana Pure
Premium Orange Juice, 7-UP (Outside USA), Cheetos Cheese Flavoured Snacks,
Quaker Cereals, Aquafina Bottled Water, Ruffles Potato Chips, Mirinda, Tostitos
Tortilla Chips, Sierra Mist (Diet & Regular) and Fritos Corn Chips.
Culture and Values
OUR GUIDING PRINCIPLES:
We always strive to Care for customers, consumers and the world we live in. We
are driven by an intense, competitive spirit in the marketplace, but we direct this spirit
towards solutions that achieve a win for each of our constituents as well as a win for the
corporation. The test of our standards is that we must be able to personally endorse our
products without reservation and consume them ourselves. This principle extends to
every part of the business, from the purchasing of ingredients to the point where our
products reach the consumer’s hands.
Speak with truth and candor. We speak up, telling the whole picture, not just what is
convenient to achieving individual goals. In addition to being clear, honest and
accurate, we take responsibility to ensure our communications are understood.Balance
short term and long term. We make decisions that hold both short-term and long-term
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risks and benefits in balance over time. Without this balance, we cannot achieve the
goal of sustainable growth. Win with diversity and inclusion. We leverage a work
environment that embraces people with diverse backgrounds, traits and different ways
of thinking. This leads to innovation, the ability to identify new market opportunities,
all of which helps develop new products and drives our ability to sustain our
commitments to growth through empowered people.
Respect others and succeed together. This company is built on individual
excellence and personal accountability, but no one can achieve our goals by acting
alone. We need great people who also have the capability of working together, whether
in structured teams or informal collaboration. A spirit of fun, our respect for others and
the value we put on teamwork make us a company people enjoy being part of, and this
enables us to deliver world-class performance
PEPSI COLA INTERNATIONAL SRATEGY
Focus on Business growth
Target core brands
Satisfy Market Priorities
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Pepsi's Global Strategy
When the "You're in the Pepsi Generation"
advertising campaign launched in 1963, it may have been the first time a brand was
marketed primarily with an association to its consumers' aspirational attitudes. A
decidedly youth-oriented strategy, the campaign hoped to hook young Baby Boomers
while they were still young. In 1984 Pepsi launched another long-running campaign,
"The Choice of a New Generation," and in 1997 they debuted the "GeneratioNext"concept.
The newest campaign slogan, introduced this year, is "More Happy," which
definitely coincides with one concrete example of "more" in the packaging of Pepsi
products today — more designs. Many more. At least 35 distinct design ideas will grace
the packaging of Pepsi's cans and bottles this year alone, and this design strategy may
continue indefinitely.
Though not "generational" in word, the campaign certainly has a youth-oriented
feel with package designs, advertising, and websites that are fun and playful. PepsiCoworked closely with Peter Arnell and Arnell Group, based in New York City, to devise
a comprehensive new strategy that would connect with Pepsi's core consumers. Arnell
reinvented the Pepsi package as a meaningful and appealing communications tool for
the latest generation of youth that are not overwhelmed by media, music, or digital
distractions.
Experimental packaging
Arnell Group (a wholly-owned subsidiary of Omnicom Group) is a design and
brand creation firm specializing in experiential design and product innovation,
preferring to take complete branding and packaging projects from first concept to
complete market solutions. Peter Arnell, currently chairman and chief creative officer of
Arnell Group, formed the Arnell Group Innovation Lab in 1999 to place invention and
innovation at the forefront in a collaborative laboratory for corporations interested in
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
designing for next generation products and experiences. Arnell applied many of his
philosophies in the Pepsi project.
Peter has taken a classic and turned it into a modern, innovative, and relevantmarketing and communications tool," said Ron Coughlin, chief marketing officer,
beverages, PepsiCo International. The new global look launched in February with eight
new package designs across cans and bottles, and the campaign is unfolding in a similar
manner overseas. The can designs roll out one at a time approximately three weeks
apart to enhance the anticipation of discovery and to pique the interest of collectors.
Product innovation today must be driven by deep consumer meaning and
connectivity," says Arnell. "It is less about unmet needs and more about giving people
what they haven't asked for but are dying to have. Using design to turn packaging into
personal consumer-powered media helps create the ultimate supportive and inspiring
relationship between Pepsi and its youth audience."
Thinking globally
The Pepsi can designs roll out one at a time, but the two-liter Pepsi bottles will
have three or four designs out at any given time.
Mike Doyle, creative director at Arnell Group, explains that there was a great
depth of exploration and research that was conducted before even beginning to
formulate a new Pepsi packaging strategy. PepsiCo and Arnell Group traveled
extensively to emerging markets to find key consumer product drivers for youth
cultures and to learn how the Pepsi brand was perceived in different countries.
They found, somewhat surprisingly, that there were very few differences around
the world in how consumers felt about Pepsi's fun, effervescent brand image. "The
brand equity is really consistent," says James Miller, marketing director, Pepsi-Cola
North America. They also found many consistencies in youth cultures around the world
in how today's youth is preoccupied with newness, discovery, and personalization of
their possessions. Miller describes the design campaign's goal as "sustainable
discovery," where the consumer audience is constantly intrigued and engaged.
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Designers at Arnell Group created the dozens of new and vibrant designs with
only a handful of blue and gray shades. Each design tells a story of sorts and each can
design has a unique website address on the side of the can. The first one on the "Your
Pepsi" can allows web users to design a digital billboard that will appear in Times
Square, and one coming shortly will allow users to mix their own music online.
"We redefined packaging as media in the marketplace for Pepsi," says Doyle. "It
speaks to youth in their language." Doyle believes that the designs succeed because they
are able to capture the audience's mind space. "The designs are reflecting back to the
culture instead of talking to the culture or imposing on it."
Reassuringly Pepsi
Pepsi actually asked their loyal consumers what brand elements would have to
remain so that they would be intuitively reassured that their favorite drinks were not
changing and the brand they trusted was still essentially the same. Their answer was
direct and consistent. Pepsi-lovers needed to see three elements for sure — the Pepsi
"globe," the iconic Pepsi blue, and the familiar tilted Pepsi capital letters.
Arnell Group updated the primary logo substantially and cleverly without really
redesigning its key elements. The most recent logo design had the Pepsi wordmark on
top of and slightly overlapping the iconic Pepsi red-white-and-blue "globe." On the
previous can design, the wordmark wrapped halfway around the can, and the globe was
off-center. The new cans and bottles have un-bundled the word and globe, making the
newly centered globe more of the hero, and the smaller Pepsi wordmark less prominent.
Television ad campaigns are reinforcing the globe-centric approach by featuring
a boulder-sized Pepsi globe in various settings careening to and fro like a pinball. In the
ads and on the front of most of the new packages is the reassuring tag line: "Same Pepsi
inside, new look outside." Miller explains that it is customary and important to reassure
consumers for at least six months in situations like this.
Miller also sees today's youth as demanding authenticity from the products they
come into contact with in their day-to-day experiences. The new Pepsi design strategy is
versatile because it can be authentic and stay current, and it could also make introducingspecial seasonal or regional designs more intriguing and less disruptive. "This is a new
way of using packaging as media," explains Miller. "The consumer is looking for more
variety and expecting more from their brands. They want to have a dialogue with their
favorite brands."
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SHAREHOLDERS
Pepsi-co. Inc. (Symbol: Pep) shares are traded principally the New York Stock
Exchange in the United Stated. The company is also listed on the Amsterdam, Midwest,
Swiss, and Tokyo stock exchange. Pepsi Co has consistently paid cash dividends since
the corporation was founded.
CORPORATE CITIZENSHIP
Pepsi Co. believes that as a corporate citizen, it has a responsibility to contribute
to the quality of life in its communities. This philosophy is put into action through
support of social agencies, projects and programs. The scope of this support is
extensive-ranging from sponsorship of local programs and support of employee
volunteer activities, to contributions of time, talent, and funds to programs of national
impact. Each division is responsible for its own growth program.
GROWTH GOALS
Set a winner's growth goals. If you act like no. 2, you will always be no.2
Employment
Hiring people who love to work and thrive on risk.
Target Core Brands
Put emphasis on the firmly established products and try to increase their market share.
Market Priorities
Establish market priorities and work towards achieving the maximum good for the
priorities.
PEPSI GLOBAL LOGO
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While taking to consumers some years back, Pepsi carried one exercise
consumers, "Take a piece of paper and draw what Pepsi means to you".
Interestingly, a lot of consumers especially kids drew the Pepsi's globe.
What is the globe? Well, its red, white and blue which says a lot of things.
Secondly, It has an incredible balance, modem kids says it has some incredible yin and
yang.
Thirdly, it has a quality of complete harmony.
Lastly, it speaks about openness and eternal youthfulness.
The biggest thing about the globe is that it is 3 dimensional logo, which no other brand
has.
In the Pepsi logo, blue colour has been underlined and used as a background colour.
Blue colour. Blue colour is associated with cold and refreshment. Blue Jeans are afavorite piece of clothing for the youth's worldwide. Thus the colour hits the 2
dimensions:
It supports the product quality-Refreshment
It reinforces consumer's affection for their favorite things.
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Our Mission, Values and Guiding Principles
VISION
As we stand at the crossroads of the new millennium, it's time to eradicate our
focus and energy single-mindedly to our Vision... The Vision to be the Best.
And what is that vision?
"To be the best consumer products company in the eyes of our suppliers, consumers,
employees and shareholders."
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
"To become truly global company, by continuing to build a competitive and profitable
word wide refreshment beverage business."
The Pepsi challenge of the Millennium will be the test of the Best
The best in connecting with the customer and the consumer, the best in marketing, the
best in selling, the best in quality, the best in processes and the best in people and
teamwork.
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Mission
We aspire to make PepsiCo the world’s premier consumer Products Company,
focused on convenient foods and beverages. We seek to produce healthy financial
rewards to investors as we provide opportunities for growth and enrichment to our
employees, our business partners and the communities in which we operate. And in
everything we do, we strive to act with honesty, openness, fairness and integrity.
The behaviors that will help us achieve our mission are articulated in our Values
Statement.
Values
PepsiCo Values & Philosophy
Our Values & Philosophy are a
reflection of the socially and
environmentally responsible company
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We are committed to delivering sustained growth through empowered people acting
responsibly and building trust.
What It Means
Sustained Growth is fundamental to motivating and measuring our success. Our quest
for sustained growth stimulates innovation, places a value on results, and helps us
understand whether today's actions will contribute to our future. It is about the growth
of people and company performance. It prioritizes both making a difference and getting
things done .
Empowered People means we have the freedom to act and think in ways that we feel
will get the job done, while adhering to processes that ensure proper governance and
being mindful of company needs beyond our own.
Responsibility and Trust form the foundation for healthy growth. We hold
ourselves both personally and corporately accountable for everything we do. We must
earn the confidence others place in us as individuals and as a company. By acting as
good stewards of the resources entrusted to us, we strengthen that trust by walking the
talk and following through on our commitment to succeeding together.
Guiding Principles
We uphold our commitment with six guiding principles. We must always strive to: Care
for our customers,our consumers and the world we live in. We are driven
by the intense, competitive spirit of the marketplace, but we direct this spirit towardsolutions that benefit both our company and our constituents. Our success depends on a
thorough understanding of our customers, consumers and communities. To foster this
spirit of generosity, we go the extra mile to show we care.Sell only products we can be
proud of. The true test of our standards is our own ability to consume and personally
endorse the products we sell. Without reservation. Our confidence helps ensure the
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quality of our products, from the moment we purchase ingredients to the moment it
reaches the consumer's hand.
Speak with truth and candor. We tell the whole story, not just what's convenient to our
individual goals. In addition to being clear, honest and accurate, we are responsible for
ensuring our communications are understood. Balance short term and long term. In every
decision; we weigh both short-term and long-term risks and benefits. Maintaining this
balance helps sustain our growth and ensures our ideas and solutions are relevant both
now and in the future.
Win with diversity and inclusion. We embrace people with diverse backgrounds, traits
and ways of thinking. Our diversity brings new perspectives into the workplace and
encourages innovation, as well as the ability to identify new market opportunities.
Respect others and succeed together. Our mutual success depends on mutual respect,
inside and outside the company. It requires people who are capable of working together
as part of a team or informal collaboration. While our company is built on individual
excellence, we also recognize the importance and value of teamwork in turning our goals
into accomplishments.
COMMITMENT
Diversity isn't just the right thing to do. It's the right thing to do for our business,
and we're committed to making diversity and inclusion a way
of life at PepsiCo.
In our business, understanding different cultures is a major advantage. In fact, we
view diversity as a key to our future. Our brands appeal to an extraordinarily diverse
array of customers. And they are sold by an equally diverse group of retailers.
To truly understand the needs of our customers and consumers -- and succeed in the
marketplace -- PepsiCo must reflect that diversity in our employees, our suppliers and
in everything we do.
Offering a workplace where diversity is valued helps us build the top-quality workforce
so crucial to our success -- by enabling us to attract and retain great people from a wide
spectrum of backgrounds.
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open communication, and candor among our employees, where we treat each other with
respect.
PepsiCo has been nationally recognized as one of the top places for women and
minorities to work. We were one of the first companies to begin hiring minorities in
professional positions, as far back as the 1940s. We were the first Fortune 500 company
to have an African-American vice president.
That commitment to diversity continues today. We place a great deal of emphasis
on personal integrity and believe long-term results, from real accomplishments, are the
only fair way to judge performance. We respect individual differences in culture,
ethnicity and color. PepsiCo is committed to equal opportunity for all employees and
applicants. We are committed to providing a workplace free from all forms of
discrimination. We respect the right of individuals to achieve professional and personal
balance in their lives.
PepsiCo's commitment is underlined by our current diversity initiatives. They
have been formulated to ensure that we attain our core value of diversity as acompetitive advantage.
Dedicated executives for managing diversity within our operating divisions.
Multi-year strategic plans for diversity are developed with the same vigor and goalsetting process as other business issues. Goals include diverse recruitment, improved
retention and fostering a more inclusive culture.
External Diversity Advisory Boards consisting of educators, politicians, practitioners
and customers to advise PepsiCo senior management on a variety of issues relating to
diverse audiences.
Annual employee performance reviews incorporating inclusion-related goals for all
managers.
Mandatory annual Affirmative Action Planning process.
Bi-annual organizational health survey incorporating diversity questions and requiring
analysis at the minority and female level. Senior management is held accountable forresults.
Corporate-sponsored multi-level program for training employees to work and manage in
an inclusive environment.
Employee networks to mentor and support diverse employees.
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
SUSTAINABLE ADVANTAGE
Three major sustainable advantages give PepsiCo a competitive edge as we operate in
the global marketplace.
Three major sustainable advantages give PepsiCo a competitive edge as we operate in
the global marketplace:
1. Big, muscular brands;
2. Proven ability to innovate and create differentiated products; and
3. Powerful go-to-market systems.
Making it all work are our extraordinarily talented and dedicated people.
When we take these competitive advantages and invest in them with dollars generated
from top-line growth and cost-saving initiatives, we sustain a value cycle for our
shareholders.
In essence, investing in innovation fuels the building of our brands.
This in turn drives top-line growth.
Dollars from that top-line growth are strategically reinvested back into new products
and other innovation, along with cost-savings projects.
Thus, the cycle continues.
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo. Mrs. Nooyi
leads one of the world’s largest convenient food and beverage companies, with 2007
annual revenues of more than $39 billion. The company operates in nearly 200
countries, and employs more than 185,000 people worldwide. Its principal businesses
include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana
juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1
billion or more each in annual retailsales.
PepsiCo’s commitment to sustainable growth, defined by Mrs. Nooyi as Performance
with Purpose is focused on generating healthy financial returns while giving back to
communities the company serves. This includes meeting consumer needs for a spectrum
of convenient foods and beverages, replenishing the environment through water, energy
and packaging initiatives, and supporting its employees through a diverse and
Inclusive environment that recruits and retains world-class talent. The company is listed
on the Dow Jones North America Sustainability Index. Mrs. Nooyi was named
President and CEO on October 1, 2006, and assumed the role of Chairman on May 2,
2007. She has directed the company's global strategy for over a decade and was the
primary architect of PepsiCo's restructuring, including the divestiture of its restaurants
into the successful YUM! Brands, Inc., the spin-off and public offering of company-
owned bottling operations into anchor bottler Pepsi Bottling Group (PBG), acquiring
Tropicana, and the merger with Quaker Oats that brought the vital Quaker and Gatorade
businesses to PepsiCo. Recently, she has been driving critical cross-business initiatives
to enhance operations and enable PepsiCo to meet the changing needs of consumers and
retailers. Prior to becoming CEO, Mrs. Nooyi served as President and Chief Financial
Officer since 2001, when she was also named to PepsiCo's board of directors. In this
position, she was responsible for PepsiCo’s corporate functions, including finance,
strategy, business process optimization, corporate platforms and innovation,
procurement, investor relations and information technology. Between February 2000
and April 2001, Mrs. Nooyi was Senior Vice President and Chief Financial Officer of
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
PepsiCo. Between 1996 and 1999, Mrs. Nooyi was Senior Vice President of Corporate
Strategy and Development. Before joining PepsiCo in 1994, Mrs. Nooyi spent four
years as Senior Vice President of Strategy, and Strategic Marketing for A sea Brown
Boveri. She was part of the top management team responsible for the company's U.S.
business as well as its worldwide industrial businesses, generating about one-third of
ABB's $30 billion in global sales. Between 1986 and 1990, Mrs. Nooyi worked for
Motorola, where she was Vice President and Director of Corporate Strategy and
Planning, having joined the company in 1986 as the business development executive for
its automotive and industrial electronic group. Prior to Motorola, she spent six years
directing international corporate strategy projects at the Boston Consulting Group. Her
clients ranged from textiles and consumer goods companies to retailers and specialty
chemicals producers. Mrs. Nooyi began her career in India, where she held product
manager positions at Johnson & Johnson and at Mettur Beardsell, Ltd., a textile firm. In
addition to being a member of the PepsiCo board of directors, Mrs. Nooyi serves as a
member of the boards of the Federal Reserve Bank of New York, the InternationalRescue Committee and Lincoln Center for the Performing Arts in New York City. She
is a Successor Fellow of Yale Corporation, member of the Board of Trustees of
Eisenhower Fellowships, a member of the Executive Committee of the Trilateral
Commission and currently serves as Chairman of the US-India Business Council.She
holds a BS from Madras Christian College in Madras, an MBA from the Indian Institute
of Management in Calcutta and a Master of Public and Private Management from Yale
University. Mrs. Nooyi is married and has two daughters.27-April-08.Massimo F.
d’Amore was named Chief Executive Officer of PepsiCo Americas Beverages in
November 2007. PepsiCo Americas Beverages has a beverage portfolio including
Pepsi-Cola North America, Gatorade, Tropicana, all of PepsiCo’s Latin American beverage businesses, and its North America PepsiCo Food Service division.
Previously, Mr. d’Amore was Executive Vice President Commercial for PepsiCo
International, a position he assumed in November, 2005, after serving as President,
Latin America Region for 4 years and SVP, Corporate Strategy & Development for
PepsiCo for 2 years. Mr. d’ Amore was also Senior Vice President and Chief Marketing
Officer for Pepsi-Cola International (PCI), a position he assumed in 1998 and Business
Unit General Manager (BUGM),Turkey/Centra Asia since1999. Prior to PepsiCo, Mr.
d’Amore had a 15-year international career with Procter & Gamble in Operations,
Marketing and General Management in Europe and NorthA frica.Mr. d’Amore is a
native of Italy and an engineering graduate from the Swiss Polytechnic Institute in
Lausanne, where he also earned a Master of Science Degree. He has lived in Italy,
Switzerland, Germany, Belgium, Morocco, France and for the last 13 years in the U.S.
He is fluent in English, Italian and French; and has a working command of Spanish and
German. He has three children and resides in Westchester.
PepsiCo is one of the world’s largest convenient food and beverage companies, with
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2007 revenues of more than $39 billion. The company operates in nearly 200 countries,
and employs more than 185,000 people worldwide. The PepsiCo portfolio includes 18
brands that generate $1 billion or more each in annual retail sales.
PepsiCo India’s commitment to Performance with Purpose
Performance with Purpose articulates PepsiCo India's belief that its businesses are
intrinsically connected to the community and world that surrounds it. Performance with
Purpose is about delivering more than financial performance, it’s about staying
committed to continuously giving back to the community and helping enrich society.
To deliver on this commitment, PepsiCo continues to build on its strong foundation of
achievements and scale up its initiatives while focusing on the following 4 critical areas
that are linked to its business and where it can have the most impact.
Replenishing water
PepsiCo India continues to replenish water and aims to achieve positive water balance
by 2009, which means it is committed to saving and recharging more water than it uses
in its beverage plants
Waste to Wealth
PepsiCo India continues to convert Waste to Wealth,
to make cities cleaner. This award winning initiative has established Zero Solid Waste
centers that benefit more than 2,00,000 community members throughout the country
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Partnership with Farmers
PepsiCo India’s Agri-partnerships with farmers
help more than 15,000 farmers across the country earn more...
Healthy Kids
PepsiCo India stays committed to the health
and well-being of kids. It will continue to provide children with a diverse, healthful and
fun portfolio, while simultaneously encouraging active lifestyle by expanding its Get
Active program for kids, especially for school going children.
THE INDIAN SOFT DRINK HISTORY
Gold Spot is considered as the first branded soft drink in India it was introduced
by Parle in early forties. Coca-Cola was the foreign soft drink to be introduced in Indian
markets. The Coca-Cola Company entered India in the early fifties, when four bottling
plants were set up at Mumbai, Kolkata, Delhi, and Kanpur. Coca-Cola enjoyed a good
beginning and dominated the market. Parle exports private limited, the major domestic
player, and later in 1970 introduced ―Limca‖ lemon soft drink. Before Limca’s they had
attentively introduced ―cola Pepino‖ which was soon withdrawn from the market
following the confrontation with Coca- Cola.
In July 1977 Coca-Cola left India following a public dispute over shareholding
Structure and imports permits. Coca-Cola left a big gap, which was filled by several
companies who came forward pushing different brands in market. Parle Products
introduced their Cola ―Thumps Up‖, pure drinks introduced
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―Double Seven‖ ―Thrill‖, ―Rush‖, ―Sprint‖. At the same time various regional soft
brands played an independent role in their respective territories like ―Duke‖,
―mangola‖.
After coke was asked to leave India Pepsi began to lay plans to enter this huge market.
Pepsi started its operations in April 1989 for beverages snack foods and export business.
In 1990 first Pepsi Cola was produced in India. In the next year 1991, production of
Mirinda and 7up started, the production of Slice Teem, Fountain Pepsi started in 1993.
Coca-Cola came back again in India in October 1993 and was launched in Agra.It
joined hands with Parle Exports Pvt. Ltd. To enter India and gradually took over the
same company. The nineties also saw a new foreign entrant Cadbury Schweppes that
rolled out Canada dry and Crush in metropolitan cities. Pepsi entered the cloudy lemon
market category by launching its Mirinda lemon in 1998.
In May 1999 a notification, presented the prevention of food adulteration (fourth
amendment) Rules 1999, allowed the use of the artificial Sweeteners, aspartame and
acesulfame potassium in The formulation of soft drinks-which was what made the entry
of Diet Pepsi and Diet Coke. Coca-Cola also rolled out its popular clear lemon drink
Sprite in India in the same year 1999.
Soft drinks can trace their history back to the mineral water found in springs.
Soft drinks can trace their history back to the mineral water found in natural
springs. Bathing in natural springs has long been considered a healthy thing to do; and
mineral water was said to have curative powers. Scientists soon discovered that gascarbonium or carbon dioxide was behind the bubbles in natural mineral water.
The first marketed soft drinks (non-carbonated) appeared in the 17th century.
They were made from water and lemon juice sweetened with honey. In 1676, the
Compagnie de Limonadiers of Paris were granted a monopoly for the sale of lemonade
soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups
of the soft drink to thirsty Parisians.
Joseph Priestley
In 1767, the first drinkable man-made glass of carbonated water was created byEnglishmen Doctor Joseph Priestley.
Three years later, Swedish chemist Torbern Bergman invented a generating
apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's
apparatus allowed imitation mineral water to be produced in large amounts.
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John Mathews
In 1810, the first United States patent was issued for the "means of mass
manufacture of imitation mineral waters" to Simons and Rundell of Charleston, South
Carolina. However, carbonated beverages did not achieve great popularity in America
until 1832, when John Mathews invented his apparatus for the making carbonated
water. John Mathews then mass-manufactured his apparatus for sale to soda fountain
owners.
HEALTH PROPERTIES OF MINERAL WATER
The drinking of either natural or artificial mineral water was considered a
healthy practice. The American pharmacists selling mineral waters began to add
medicinal and flavorful herbs to unflavored mineral water.
They used birch bark, dandelion, sarsaparilla, and fruit extracts. Some historiansconsider that the first flavored carbonated soft drink was that made in 1807 by Doctor
Philip Syng Physick of Philadelphia. Early American pharmacies with soda fountains
became a popular part of culture. The customers soon wanted to take their "health"
drinks home with them and a soft drink bottling industry grew from consumer demand.
The Soft Drink Bottling Industry
Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the
carbonated drink bottle tops during the early days of the bottling industry. Carbonated
drink bottles are under a lot of pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In 1892, the "Crown
Cork Bottle Seal" was patented by William Painter, a Baltimore machine shop operator.
It was the first very successful method of keeping the bubbles in the bottle.
Automatic Production of Glass Bottles
In 1899, the first patent was issued for a glass-blowing machine for the
automatic production of glass bottles. Earlier glass bottles had all been hand-blown.
Four years later, the new bottle-blowing machine was in operation. It was first operated
by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few
years, glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.
Ninety years after the invention of what become one of the most favored drinks
globally in 1988. Pepsi entered India flanged with heavy resources and riding the winds
of change of a newly opened economy. First, Pepsi has only franchise unit. Pepsi gave
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
his concentrate to small factory and they make beverage.
In 1988, Pepsi set up its offices in India. In this company Pepsi operates as
PEPSI Foods Pepsi Co. India Holdings and Pepsi India marketing.
The mission was to change the tastes and life style of a common Indian, whoidentified soft drinks and beverages as a few available cold drinks, squashes and
concentrates.
When it came to a refreshing drink conservative consumers would back to
traditional nimboo pani, jaljeeram lassi etc.
Although India has a per capita consumption as low as 3 per person as compared
to 400 in USm India has one of the largest number of potential consumers in a world
with a population of an arab, Every Indian guzzles 27 bottles of soft drink every year,
an increase of one bottle per capita consumption would mean stating 900 bottles extra.
India soft drink is of worth RS. 1800 crores with annual growth at the rate of20% to
25%.
All the activities of Pepsi Foods Pepsi Co, India Holdings and Pepsi India
Marketing Company are controlled by business Unit (BU) located at GURGAON. This
BU is divided into various marketing units (MU's). All except the North and Market
Units have common borders with states comprising them.
The market units demarcate the areas, which are "Coboised" i.e.Have Company
owned bottling operations(COBO). In these units there are company owned bottling
plants while in other areas the operations are run by a franchisee these areas are referred
to as Fanchisee Owned Bottling Operations (FOBO'S) and some and in some others
Joint Venture operate.
COBO - In the COBO, the company has total control of the decisions and
implementations undertaken, but for this the company has to invest its own money.
FOBO - The FOBO’S are independent to tak e their own marketing and operational
decisions with no major interference form the company.
The FOBO's are supplied the concentrate from the company and they have to
run the show, there after. Pepsi maintains ownership of the trademarks and is primarily
responsible for ownership in a local bottling operation. This helps Pepsi maintain strong
trademark on the other party's resource and expertise. The PCI workflow concentrates
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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY
on Selling, Making and Delivering Pepsi- Cola.
Pepsi -Cola is a company with a "Low margin, high volume business" Pepsi Co.
deals in the carbonated Soft Drinks (CSD's) Market.
CSD's fall in two categories-Cola and flavors. Coals concentrate on Pepsiwhereas flavors deal with orange and Lemon. In India the flavors are Mirinda Orange
and Lime. Slice is a fruit Juice concentrate based Drink.
Starting out in 1989, with that name of "Lehar Pepsi", the company has grown
leaps and bounds ever since with competition increasing with reentry of coke a few
years ago. Thanks to an early lead and a better understanding of the market, India
remains amounts the handful of markets worldwide where Pepsi is ahead of its archival
Coke.
Despite being the global Pepsi has build its success on meeting out the Indian
customer's needs. Pepsi has made its brand synchronize with localized events and
traditions. Pepsi maintained its top of mind awareness with roadside signage and
reminders. The partner type relationship with bottles, FOBOs as well as COBOs cover
most of the company adequacy.
One of the strongest weapons in Pepsi's armory is the flexibility it has
empowered its people with. Ht Pepsi every employee, may be a manager of a salesman,
have an authority to take whatever steps he or she feels will make the consumers aware
of the brand and increase its consumption. Thus Pepsi believed in establishing and
nurturing creditability of the salesman and making the joint commitment to grow
business in accounts, All these factors together led to a high froth in the Indian market
and constantly increasing market share.
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PRODUCT WISE COMPARISON OF PEPSI WITH COMPETITOR COCA-
COLA:
Pepsi Coke, Thumps Up
Pepsi Aha
Mirinda ( orange+lemon+apple) Fanta(orange),Limca
Teem Soda
Slice Maaja
7UP Sprite
Mountain dew Kinley(soda)
Diet Pepsi Diet Coke
Aquafina(mineral water) Kinley (mineral water)
Distribution Channel and strategies
―Marketing channels are sets of interdependent organizations involved in the process of
making a product or service available for use or consumption‖
Philip Kotler
Distribution (Place) Strategies
● Product availability where and when customers want them.
● Involves all activities from raw materials to finished products
Basic Channels of Distribution
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Distribution Objective
Minimize total distribution costs for a given service output
Determine the target segments and the best channels for each segment
Objectives may vary with product characteristics
e.g. perishables, bulky products, non-standard items, products requiring installation &
maintenance
Manufacturers/ roducts
Agents/brokers
Wholesalers/distributors
RetailersRetailer
Consumers and organizational end users
Place
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Output
Supply
1. Determine inventory of ingredients to order new supplies.
2. Maintain purified water supply so ensure continuance of production.
Manufacturing
1. Ensure proper packaging to ensure quality and freshness in products.
2. Maintain quick local distribution to ensure freshness and quality products.
Sales
1. Keep positive distribution levels to all sales outlets to maintain positive sales.
2. Meet any new demand or competition with products and consumer needs.
DISTRIBUTION CHANNELS (Pepsi)
There are two marketing channels that involve in the transfer of product from
the producer to the consumer. The intermediaries involved in the transfer are
distributors and retailers.
THE DIFFERENT DISTRIBUTION CHANNELS USED:-
There are basically three distribution channels used. The distribution channels’ are
elected as they are shortest and cheapest, that how easily and timely transportation could
be done and the transportation cost could be the least.
The distribution channels are-
E- The fastest and the cheapest channel.
C- The slowest and the most costly distribution channel.
G- The average distribution channel.
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PepsiCo is adopting E distribution channel.
DISTRIBUTORS
Distributors are appointed agents of the company who make orders to the company
by paying in advance through drafts, stock the products in their go-downs and supply
them to outlets through their fleet of delivery was and a team of salesmen and drivers.
They are allowed to sell to company's product to the retailers in a specified area. The
company divides this area into routes. Each route is covered by one unit i.e. one de
livery van, one salesman one driver, one helper etc. These units and go-down are their
main investment. Distributors have to invest in empty bottles and crates too, so t hat
they can maintain a specified quantity of reserve stock and facilitate the quick rotation
of glass crates.
The company evaluates its distributors at the end of the year and makes plans for
the next year. Company fixes the targets for each distributor according to market size,
last year’s sales, potential growth assumption based on deposit of em pties and
installation of coolers at outlets. Distributors are awarded with a fair margin of Rs. 10
per crate for their service. This margin could be increased for the sale above the targets,
company offers are met with distributors before appointing them. Distributor
comployning with many schemes and contests for its customers for pushing different
brands and giving various services. Company also offers many gifts like, briefcase, and
handbags. T-shirts, caps etc. to encourage the distributors. If distributor does not agreewith the conditions of these agreement company may reduce the area of distributor or
may even terminate the relationship.
RETAILERS
The sale of particular soft drinks depends a lot entirely on retailer’s wish. Like if he
does not keep Aquafina and if his shop is at the prime location then certainly the
customer with turn towards other cola drinks like Bisleri, Bailey ,Kinley etc. This allgoes to prove that retailer is king. So retailers require special focus from the company.
Pepsi Co. helps the retailers to serve its customer better by providing good margin to
them for storing its product using merchandising to improve in-store product display,
installing cooling equipment in outlets to make the product ready to drink and offering
different promotion schemes to them time to time to push different brands, Pepsi Co.
Provides a fair margin of Rs. 24 per crate to the retailers.
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CUSTOMER SERVICE DEPARTMENT
Customer Service is a support function to sales and marketing Department and is
concerned with effectively dealing with all customer complaints
This starts from:
Ensuring Receipt, Documentation and Follow Up of all complaints to be take care
of within a specified time in order to achieve the ensure Customer (retailer) distributor
and consumer Satisfaction. The Customer complains directly through phone or pager or
through the sales team visiting them. Types of Complaints handled are related to:
Consumer
Signage and Schemes
Supply and Service
Quality of Product
Cooling Equipment
A Customer Service executive who in turn co-ordinates with five Customer Service
Representative positioned in the five sales divisions in UP-Allahabad, Kanpur,
Gorakhpur, ALLAHABAD and Bareilly heads customer service department at the unit
office. These Customer Service Representative handle customer service functions in
their respective territories.
MARKETING DEPARTMENT
Marketing department is mainly concerned with promoting "TOM" i.e.‖ Top of the
Mind Awareness for Pepsi as it is a consumer oriented organization. It performs the
following functions to build consumer and customer preference.
Signage: This includes putting up of glow gings, banners, wall paintings, hoardings,
kiosks etc.
Promotions: This includes ad campaigns, sales promotions, new packages and brand
launches. Events this includes sponsoring events at national, state, district and city level
e.g. sports tournaments, rock shows Musical Nights, Dance competitions, School and
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college annual festivals etc.
All these activities are carried out by the unit office with the help of guidelines
issued by the BU in the form of an annual marketing calendar and budget.
Marketing department at the Unit Office is headed by a Marketing Manager andhas three Marketing Executives. The marketing department co ordinates with the five
sale division in UP-Allahabad, Kanpur, ALLAHABAD, Goarakhpur and Bareilly to
implements the various marketing programs
SALES AND MARKETING HIERARCHY OF PEPSICO INDIA.
MUM
UM
TDM MDM
MDC ADC
CE ME
UM
SALESPERSONS MARKETING
ASSISTANTS
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MUM-
Marketing unit manager, In charge of specific zones (e.g. north, south, east, west) and
report to the corporate office.
UM-
In charge of day to day operations and supervision of all the functions within the
organizations including operations, logistics, sales and distribution, marketing. The Unit
Manager reports to the MUM.
TDM- Territory Development Manager , TDM is the in charge of the sales and distribution
network of a particular territory within a zone. Responsible for the daily, monthly and
annual sales within the territory decides the daily schemes for products and incentives for
salespersons.
MDM –
Marketing Development Manager, MDM is responsible for all the marketing activities
and their effectiveness within a territory.Decides the format and time frame of the
marketing and promotional activities and the incentives given to the retailers.
ADC –
Area Development Coordinator, Reports to the TDM, and is in charge of a C & F center
and the distributor point in the area. He is directly responsible for any issues in the area
and is supposed to ensure the smooth functioning of the entire sales and distribution
network in the area.
MDC – Marketing Development Coordinator, Reports to MDM, and is in charge of carrying out
all the marketing activities in the area. He is responsible for the execution and success of
marketing and promotional activities.
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CE –
Customer Executive,Reports to the ADC and is in charge of the salespersons. He is
required to visit the market and accompany every salesperson as frequently as possible.
He is the first person to get information about the market / area and is the first contact if
the salespersons or retailers face issue. Responsible for assigning and achieving daily
sales target given to the salespersons
ME –
Marketing Executive, Reports to the MDC and is responsible for the daily functioning of
the marketing activities in the including awareness of promotions in the market and the
response in the market
Salesperson-
Who sell the products, are responsible for acquiring new customers, and retain the old
ones. Their work also includes informing the retailers about the promotions and any new
scheme launched.
Marketing Assistants-
Reports to the ME and is responsible for the distribution and usage of the displays and
boards in the area. Also has to check whether retailers are following the guidelines of the
company regarding promotional displays, other displays and displays in the Vigicoolers.They report to the ME.
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ADVERTISING & PUBLICITY
Pepsi Co. is one of the biggest and spenders in India. It is also one of the biggest global
ad spenders. It has long a list of endorsers from pop star Ricky martin to file stars
Shahrukh Khan, Amitabh Bacchan etc. & Cricket stars Sachin Tendulkar, V.V.S
Laxman, Harbhajan Singh etc. Hindustan Thompsom Associates, the big gets advertising
agency of India has the account of Pepsi Co. is known for its board cast advertising but it
also spends a lot in non board cast advertising i.e. hoarding, banners, posters stickers,specialties, hangar,dealer board, glow signboards, wall painting and news paper. The
expenses on these type of advertising are made at territory or unit level. ALLAHABAD
territory has assigned two local advertising agencies R.D. Associates and Krishna for its
territorial advertising.
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RESEARCH METHODOLOGY
INTRODUCTION
Business research can be defined as a systematic and objective process of
gathering, recording, and analyzing data that provides information to guide business
decisions. It is used either to understand market trends, to find the optimal marketing
mix, to devise effective HR policies, or to find the best investment options.
In the present fast track business environment marked by cutthroat competition,
many organizations rely on business research to gain a competitive advantage and
greater market share. A good research study helps an organization understand
processes, products, customers, markets and competition and to develop policies,
strategies, and tactics that are most likely to succeed.
ROLE OF BUSINESS RESEARCH IN DECISION-MAKING
For effective planning and implementation of business decisions, accurate
information about the internal and external business environments is of primary
importance. The key objective of business research is to provide accurate, relevant, and
timely information to the top management, so that they can make effective decisions.
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The business decision-making process in an organization going through the
following key interrelated stages:
Problem/opportunity Identification
Problem/opportunity prioritization and selection
Problem/opportunity resolution
Implementing the selected course of action
Business Research helps the management in each of the stages by providing useful and
timely information
RESEARCH OBJECTIVE
Study the distribution network of Pepsi
To comparatively analyze the stock of Pepsi and coke with retailers of Pepsi.
To study the retailers satisfaction.
To find out the way to enhance the sale of Pepsi.
POPULATION OF SURVEY-
The population was of 200retailers but the sample selected to make the study was of 150
to find the result. The study aimed to find the demand of the product of PepsiCo in
various areas assigned
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose which
economy in procedure. Main characteristics of research design can be summarized in
two words-
1- Anticipation
2- Specification
o Sample size 150
Retailers
o Sample unit dealers &
consumer.
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My research design is descriptive,
In my research, I conducted a market Survey of mapping the width and depth of
various brands of PepsiCo.
ROUTE MARKETING-
Outlets coming under this market cater to the needs of those customers who areengaged in shopping, eating out in restaurants, going to and from work, in
amusement centers etc. In simpler words this marketing is what we call the
bazaar.
1. 1. CIVIL LINES
2. RAJAPUR
3. SELUM SARAI
4. GOVINDPUR
5. TELIRGANJ
6. NEW CANTT
7. JHONSTANGANJ
8. LUKERGANJ
9. TAGORE TOWN
10. KHULDABAD
11. KARELI
12. DARYIBAD
13. KATRA
14. MUMFORDGANJ15. MUIRABAD.
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TYPE OF RESEARCH:
The basic types of research are as follows:
1. Descriptive research:
The major purpose of this research is description of the state of affairs as it exist at
present.
2. Analytical Research:
In this research, the researcher has to use facts or information already available these to
make, and analyze these to make a critical evaluation of the material.
3. Applied research:
It aims and finding a solution for an immediate problem facing a society or an
industry/business organization.
4. Fundamental research:
It mainly concerned with generalization & with the formulation of a theory
5. Quantitative Research:
It is based on the measurement of quantity or amount. It is applicable to phenomena that
can be expressed in terms of quantity.
6. Qualitative Research:
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It is concerned with the qualitative phenomenon, i.e., phenomena relating to or
involving or king.
7. Conceptual Research:
It is related to some abstract ideas or theory.
8. Empirical Research:
It is data- based research, coming with a conclusions which are Capable of being
verified by the observation and experiment.
9. Diagnostic Research:
Such a research follow case – study method or in depth approaches to reach the basic
casual relation.
10. Exploratory Research:
The objective of this research is the development of hypothesis rather than their testing.
Census Method
In this analysis Marketer have used census method instead of Sampling Method.
Marketer have surveyed all retailers which do not sale Pepsi or sell very less and come
under Shukla Sales Distributor at Sitapur Road , Allahabad.
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7. Preparing and presenting the Research Report
Source of Information
In our research we have made use of both primary and secondary data.
PRIMARY DATA:
Personal interview
Surveys
But here, only survey method of data collection is preferred which is very suitable to
reach the researchers motto.
SECONDARY DATA:
Article published in internet.
Internet.
SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment. It is
the first stage of planning and helps marketers to focus on key issues. SWOT stands for
strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal
factors. Opportunities and threats are external factors
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S Things the company does well.
W Things the company does not do well.
O Conditions in the external environment
that favor strengths.
TConditions in the external environmentthat do not relate to existing strengths or
Internal
External
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OOppppoor r ttuunniittiieess AAnndd
TThhr r eeaattss ((EEXXTTEERRNNAALL))
●Social
●Demographic
●Economic
●Technological
●Political/Legal
●Competitive
● Production Costs
● Marketing Skills
● Employee Capabilities
● Financial Resources
● Available Technology
● Company/Brand Image
SSttr r eennggtthhss aanndd
WWeeaakknneesssseess ( ( I I N N T T E E R R N N AALL ) )
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Distribution channel-
Channel 1 Manufacturer……………………………………………Consumer
Channel 2 Manufacturer……………Retailer……………………Consumer
Channel 3
Manufacturer……...Wholesaler…… Retailer…Consumer
Channel 4 Manufacture…….Wholesaler……Jobber…Retailer……Consume
STATISTICAL REPRESENTATION OF SURVEY-
Q.1 Market share of Pepsi and Coca Cola.
Finding-PepsiCo has covered 52% of market share while coke has covered 48% shre of
entire market
52%
48%
Market Share of Pepsi &Coca
Cola in Percentage
Pepsi
Coca Cola
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Q. 2 Market share of ice box comparison.
Findings:
In ice box comparison Pepsi is far behind from coke as it has only 38%share while coke
has 62% share.
Ice Box comparisons
Pepsi
Coca-cola
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Q.3 How many racks are available with dealers.
Findings
Pepsi lead in the distribution of racks to the dealers as it has 55% while that of coke is
45%.
Rack comparison
Pepsi
Coca-cola
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Q.4 How many are having glow sign.
Findings
Pepsi lags behind coke in the glow sign distribution as it has only 42% share.
Glow sign comparison
Pepsi
Coca-cola
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Q.5 Visi Share.
Findings
Out of the 150 dealers the 58 have 400 Ltr ,29 have220 Ltr,18 of165 Ltr15of 65 Ltr,20 of
320Ltr,4 of 65Ltr and 6of 1000Ltr.
VISI COOLER SHARE
400 Lt
220 Ltr
165 Ltr
110 LTR
320 Ltr
65 Ltr
1000 Ltr
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The pepsi visi cooler are not available with 80 dealers 30 have 400ltr, 10 have 220ltr,12
have 165,5 have 110ltr,8 have 320ltr,1 have 65ltr,4 have1000ltr.
Pepsi Visi Cooler
400 Ltr
220 Ltr
165 Ltr
110 Ltr
320 Ltr
65 Ltr
1000 Ltr
NA
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FINDINGS
Out of 150 dealers 70 does not posses visi coolers 28 have 400 ltr, 19 have 220 ltr,6have
165ltr,10 have110 Ltr,12 have320ltr,3 have65,2 have 1000ltr.
Coke Visi Cooler
400 Ltr
220 Ltr
165 Ltr
110 Ltr
320 Ltr
65 Ltr
1000 Ltr
NA
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Q6. Market analysis of Pepsi assets with dealers.
Market position of 7up as compared to sprite.
Pepsi assets being7 up is being faced with sprite as its main rival has max. number of
share in the market .
Sales
7up
Sprite
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Q.7 Market share of mountain dew as compared with sprite.
Finding-
Mountain dew is being the favorite drink of the youngsters in the city of Allahabad andthe next being that of sprite liked by them.
Sales
Mountain dew
Sprite
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SALES AND DISTRIBUTION NETWORK OF PEPSICO INDIA:-
PepsiCo is adopting the
COMPANY
COBO FOBO
WAREHOUSE
C & F DISTRIBUTOR
WHOLESALER SLUMS RETAILER
RETAILER CUSTOMER
CUSTOMER
SALESMEN SALESMEN
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Project Analysis
Project
“Each Dealer Survey To Map Width And Depth Of Various Brands Of PepsiCo In
Allahabad”
Description
We were required to find out those outlets which are either not selling Pepsi or selling in very
less amount. Region for the project was Allahabad region. This project was aimed at finding
out the shops, which were not promoting Pepsi and selling competitor brands. It was also
aimed at knowing the reason for anti Pepsi behavior of outlets in the region, their
requirements from company and willingness to sell Pepsi brands.
Purpose
Main purpose for this project was to make management aware of the total no. Of outlets in
their region which were not selling Pepsi. It was also to plan their new course of action
keeping in mind the current market position of Pepsi as well as of Coke. This was viewing
the market share of Pepsi in comparison of Coke. This report gives information to
management about the outlets uncovered by Pepsi and their requirements to the company.
The marketing of its brand is excellent and is very successful to reach its brand in
Allahabad. Overall the market of PepsiCo brand is good in comparison with Coke. There are
very few outlets which are not selling Pepsi brands.
DETAILS OF THE SURVEY
The trainee was required to visit all the outlets in the specified area of his distributor,
which was told to us by the CE concerned. We were required to be given the route map of the
specified area. The area was to thoroughly survey without leaving any of the outlets.
Initially the survey was to start with the route vehicle of the distributor of that area. Two
days had to be devoted with the route vehicle and noting down the name of the outlets and
other particulars where ever their route vehicle visited the outlets. It was to get familiarized
with the area. The next couple of days had to be surveyed individually in the same area trying
to find out those outlets in that area which was not attended by the route vehicle. This was
how the whole survey was to be conducted.
The main aim of this survey was to find out those outlets which are either new or remain
unnoticed/unattended by the route vehicle or where the Pepsi products were not reaching.
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For Pepsi these outlets are going to be the main focus of the survey. It was to know the
exact strength of outlets of the area which were not selling Pepsi or selling very less. we were
required to collect the following information from each outlet he surveyed.
Name of the outlets
Address of the outlets
Status of the outlet Cooling Equipment
Sale of the outlet
Brands on sale
Requirement of outlet
Willingness to sale pepsi.
Reason for anti Pepsi
Name of the outlets:
We had to note down the name of the outlet visited
Address of the outlet:
Complete address of the outlets was to be noted by the trainee
Sale of the outlet
Sale of the outlet was to be noted on per day basis.
Brands on sale
Check out the brands available at the outlet.
Requirement of outlets
Ask what the shopkeeper wants from the Company.
Willingness to sale Pepsi
To know if shopkeeper wants to sell Pepsi or not.
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SUGGESTION REGARDING IMPROVEMENT
CE needs to personally contact with retailers who help in knowing the activities of the
distributors as well as help in Promoting the business.
It should focus its attention to the untapped market where it can considerably increase its
market share.
Distributors should from time to time take the pain of finding out the requirement of retailersand the problem they are facing.
The process of visi installation should be made easy.
There should attention be paid to the repairing of visi out of order.
Pepsi should work hard more to increase its market share in some areas like Pritam nagar
Road, Allahabad etc.
Advertisement and publicity in the untapped market by way of signage, racks, paintings,
banners, hoarding etc. should be expanded.
Margin to retailers should be taken care of and may be possible ought to be increased without
increasing the overall price. Distributors should check the working of route agents or salesman on regular basis.
Shortages of the product during the summer season if possible should be reduced. It
communicates bad message among the retailers as well as the consumers.
Signages & merchandise should be installed against the sale performance of the outlets as
well as the need of the market.
Survey by the top officials should be made in the un tapped areas to access the real situation
and should be done as a surprise visit instead of planned visit.
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LIMITATIONS OF STUDY
It is well known fact that constraint and limitations are bound to be present in any
study do this also has some limitation as:-
1- The survey has been conducted only in few areas of Allahabad due to limited time.
2- It is very difficult to make people understand the significance of conducting survey.
3- Lack of retailer’s interest to answer the questions is also an important limitation.
4- Lack of knowledge of area has affected the research.
5- the information given by the client may be false and biased.
CONCLUSON
“Each dealer survey to map width and depth of various brands of PepsiCo in India”
The summer training project was focused on ―‖
Pepsi is superior brand than coca-cola but from some time its market share has come
down due to various reasons. In India the company is running with very fast speed. The
popularity of Pepsi is better than coke. It has bright future.
It has democratic and communicative style of functioning.
Conclusion has been drawn:-
Proper approach to the retailers at the time of tie ups is required.
The retailer’s satisfaction is low.
Company does not provide schemes properly.
No provision for regular replacement of damage of bottles.
Many complains of retailers does not listen by the company.
Many retailers want monopoly but company does not provide.
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a) Average b) Good c) Very good
QUESTION- 8 What is the reason of being anti Pepsi?
a) Visi not provided b) Tie up with Coke/ coke approached first
c) Pepsi services not suits d) Schemes are not as good as Coke’s
BIBLOGRAPHY
Books:
Marketing Management – ―Philip Kotler‖
Research Methodology – ―C.R. Kothari‖
Web Sites
www.google.com
www.pepsico.com
www.coca-cola.com
www.ask.com
www.wikipedia.org