competitve analysis of pepsi and coca cola
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Transcript of competitve analysis of pepsi and coca cola
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INTRODUCTION
PepsiCo organization initiated this project to assess the competitor activity between Pepsi and Coca
Cola in the present market. The main motive of this project is to identify the competitors various
activity such as retailer margin, promotional activity/ schemes, acceptability and service of their
leading competitors in the Bhubaneswar market.
The project methodology involved carrying out the preliminary research to gain insight into the
Bhubaneswar market, sub segment, current trends, growth and competitors. Through analyzing the
requirement and designing questionnaire. Collating & analyzing data and identifying leads that
qualifying for an offering and formulating recommendation for S.M.V. BEVERAGES Jagatpur,
Cuttack.
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.
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KEY AREAS
The key area of my summer training was Ready base & Order base delivery system in terms of
satisfaction of shopkeeper at Khandgiri (Bhubaneswar).
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 Khandgiri 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 or heart of a city.
In inner circle I 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 I 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 etc.
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PEPSICO COMPANY PROFILE
Mission and Vision
At PepsiCo, I believe being a responsible corporate citizen is not only the right thing to do, but the
right thing to do for our business.
Mission
Our mission is to be the world's premier consumer products company focused on convenient foods
and beverages. I seek to produce financial rewards to investors as I provide opportunities for growth
and enrichment to our employees, our business partners and the communities in which I operate.
And in everything I do, I strive for honesty, fairness and integrity.
Vision
"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.
Guiding Principles
We must always strive to:
Care for customers, consumers and the world we live in
Sell only products we can be proud of
Speak with truth and candor
Balance short term and long term
Win with diversity and inclusion
Respect others and succeed together
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Type: Public (NYSE: PEP)
Founded: 1965
Headquarters: New York, USA
Key people: Indra Nooyi, Chairman, President & CEO
Industry: Food and beverage
Products:
Pepsi
Pepsi max
Diet pepsi
Atom Pepsi
Tropicana Products
Slice
7up
Mountain Dew
Mirinda
Revenue: US$ 66.504 billion (2011)
Operating Income: US$ 9.633 billion (2011)
Net Income; US$6.42 billion (2011)
Total assets: US$ 72.882 billion (2011)
Total equity; US$ 20.899 billion (2011)
Employees : 297,000 (2011)
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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 the company was
established in the country. PepsiCo provides direct and indirect employment to 185,000 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.
Pepsi Co nourishes consumers with arrange 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, Miranda 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.
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In snacks segment-PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty
snack market and all Frito Lay products are free of trans- fat and MSG. It manufactures
Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure
and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted
snack options enhance the healthful choices available to consumers. Frito Lay’s core products,
Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce
saturated fats and all of its products contain voluntary nutritional labeling on their packets. The
group has built an expansive beverage and foods business. To support its operations, PepsiCo has
43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In
addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants.
Pepsi Co’s business is based on its sustainability vision of making tomorrow better than
today. PepsiCo’s commitment to living by this vision every day is visible in its contribution
to the country, consumers and farmers. Pepsi Co India's agri-partnerships with farmers help
farmer s across the country grow and earn more.
Pepsi Co's involvement in Indian agriculture stems from its vision of creating a cost-
effective, localized agri-base in India by lever aging farmers access to world class agricultural
practices. PepsiCo India worked with farmers and State Governments to improve agri sustainability,
crop diversification and raise farmer incomes. Pepsi Co helped transform the lives of thousands of
farmers by helping them refine their farming techniques and raise far m productivity, and
customized solutions to suit specific geographies and locations.
The most ambitious project is a joint program, launched in 1989, between PepsiCo India,
the Punjab Agriculture University (PAU) in Ludhiana and
Punjab Agro Industries Corporation (PAI C) in Chandigarh. The program focuses on evolving
agricultural practices to help Punjab farmers produce internationally competitive products. Over
the last five years, PepsiCo has also collaborated with the Thapar Institute of Technology to
develop a high quality potato seed program.
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PepsiCo was a pioneer in the concept of contract farming under which the company transfers
agricultural best practices and technology and procures the
Produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acre research and
demonstration far m in Punjab to conduct far m trials of new varieties of tomato, potato and other
crops. The program, which includes seed production, has successfully evaluated the following
crops,
Several varieties of basmati rice more than 200 varieties and hybrids of chilli
25 varieties and hybrids of corn
More than 60 varieties of peanut
More than 100 varieties and hybrids of tomato.
Additionally, the development of new tomato varieties has helped increase total annual.
Production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields
Additionally, the development of new tomato varieties has helped increase total annual production
of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have more than tripled
from 16 tons to 54 tons per hectare.
Under the program, 6 high-qualities, high- yield potato varieties have also been introduced to
Indian farmers. These new potato seeds have helped to increase far m income and enabled PepsiCo
to procure world class chip-grade potatoes for its Frito Lay snacks division. The company has
partnered with more than 10,000 farmers working in over 10,000 acres across Punjab, U.P.,
Karnataka, Jharkhand West Bengal, Kashmir and Maharashtra for the supply of potatoes. PepsiCo
India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie up with the
United Breweries Group.
PepsiCo India’s technical team also implemented a high quality seed program to deliver early
generation and disease free seeds to farmers.
Tropicana- Tropicana product is an American based company, and was founded in
1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by PepsiCo,
Inc. Pepsi offers the wide variety of products to meet the choice and preference from fun for your
items to the products choices that contribute to healthier life style.
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KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS PVT. LTD.
PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani 'Nimbooz by 7Up'
PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus 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 INR10,
INR 15 and INR 10 respectively.
PepsiCo India Holdings Pvt. Ltd. t o Launch Lemon Drink
PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the lemon drinks
category and has plans to introduce a product under 7up brand ahead of the summer
season. The new product would be less carbonated and is targeted at the mass market for on-the-
move consumers.
Headquarter: New York, U.S.
Area served: Worldwide.
Industry type: Food and non alcoholic beverages.
Products:
Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice, Tropicana, Atom Pepsi,
Nimbooz juice, Aquafina.
Key person : Miss Indra Krishnamurthy Nooyi (president), and (CEO).
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S.M.V. BEVERAGES Pvt. Ltd.
SMV Beverages Pvt. Ltd. Cuttack is a franchise owned bottling plant (FOBO) is located on
the near NH-6 Jagatpur bank of Mahanadi producing Pepsi range of bottled soft drinks, viz. Pepsi,
Mrinda, 7up, Mountain Dew, Slice and Soda and it has now become a house hold word in the state
Odisha. Year of establishment 1969. It was taken over by Mr. S.K. Jaipuria in March1999. He was
very much enthusiastic to increase the production and sales and to nature the whole market of
Odisha. S.K. Jaipuria holds the top position but the overall policies regarding managerial decision
and all the executive function are performed and look after by the Director Mr.H.K.PATRA .He has
been given the power and authority to manage the company affairs. Therefore, Mr. H. K. PATRA
can be recognized as the Chief Executive. The Director look after all the functional department like
production, sales, accounts, personnel, purchase etc. Every department sends report directly to the
director and are responsible to him in sense of working. In spite of this all department are in direct
control of the director. Plant superintendent is the head of the production department. He look after
production, that is bottling process, inspection, storage of new materials and though there is a
quality control manager. The controller of accounts heads the accounts department. Manager
(Personal & Administration) looks after the function of administration, industrial relation , legal
jogs security, welfare etc. 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 Odisha. Right now there is only one bottling plant of Pepsi in
Odisha and it cater the need of all the Pepsi products in Odisha. Entire state is divided into
territories and one territory development officer controls each territory.
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
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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. considers the impact of the different events, trends, issues, and expectation on its strategic
management process. Since the environment 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 an organization’s activities, government
policy statements pertaining to S.M.V. BEVERAGES Pvt. Ltd. business and industry and soon,
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. 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 and
strides forth towards progress and prosperity for the fulfillment of the ideas of its revered
founder.
Pepsi production process:
Any cold drinks (soft drinks) generally contains
Water
Sugar
Flavors or fruit pulp
Chemicals
CO2 gas (in carbonated soft drinks)
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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. Jagatpur also the same ingredients are used to prepare Pepsi and its
other brands. All these ingredients are added at different stages by different processes. The diagram
in the next page represents the flow or sequence of steps involved in S.M.V. Beverages Pvt. Ltd.
Jagatpur for manufacturing of Pepsi products. 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.
During my visit to S.M.V. Beverages Pvt. Ltd. Jagatpur, I saw
Water treatment plant, where water is purified.
Bottle washing plant, where used glass bottles are washed.
Syrup room, where syrup is prepared from sugar.
Bottle filling plant, where bottles are filled with the final product.
Acid room, where caustic soda is kept, which is used for cleaning the equipments and
pipelines after every batch of production.
Yard for keeping empty bottles and ware houses for storing the filled bottles.
The brief introduction of each Plant is given bellow:
Water treatment plant:
Water in S.M.V. Beverages Pvt. Ltd. Jagatpur, is coming from the Mahanadi River. It is stored in a
reservoir. This raw water is being treated in the water treatment plant, before the production process
starts. Coagulation process is used here for this purpose. Main chemicals used are ferrous sulphate
(FeSO4), calcium hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these
chemicals in the treatment tank and becomes turbid. All the impurities get settled at the base and
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remove the turbidity. Then, it is sent to the carbon tank where all the microorganisms and chlorines
are removed. The water so obtained is completely free from any kind of impurities and used
in further processing. The maximum alkalinity maintained until as much as 50 ppm.
Bottle washing plant:
Used bottles returning from the market are stealthy. Before filling these empty bottles with new
product, these bottles are passed through the bottle washing plant where these dirty bottles are
washed. It is completely an auto process which takes place within a machine called washer
machine. The machine has three compartments. Bottle for washing are placed on the conveyer
come inside the machine and get successive treatment. Bottles are treated with 4% caustic
soda in the first compartment at a temperature of 100-150Û C. Next these are conveyed to the
second compartment, where bottles are again washed with hot water at a temperature of 80-
100Û C, in the third compartment bottles are treated with cold or normal water at room
temperature. Time duration in each compartment is 10 minutes. Bottles are then sent through the
inspection center, where these are closely watched against white rays of light. Bottles containing
any dust or other unwanted things are removed from the line here.
Syrup room:
Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a specified ratio
into closed container. The temperature of this prepared sugar remains between 80-100ÛC. This
syrup contains some impurities as, sometimes there are some impurities presents in sugar, so this
syrup is filtered to remove all those contaminations.
Before storing in syrup tanks this syrup it is passed through the cooler where syrup
temperature is reduced to 25-30ÛC. This temperature is maintained throughout the whole process.
Here next flavors are added at a specified quantity with the syrup used for preparation of
Pepsi or other brands.
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Bottle filling plant:
Next, for preparation of carbonated soft drinks brands like Pepsi, Mirinda, 7UP, and mountain dew,
carbon dioxide gas (CO2) is mixed with this prepared solution. And for the brand like slice, fruit
pulp is added. Now the solution is ready for filling into the bottles. The washed empty bottles are
filled by automatic filler machine. This machine can fill 60 bottles in one minute. After filling,
crowns or caps are fitted on the filled bottles with the help of crowning machine. Now these filled
bottles are ladled and then sent for packing and storing in the godowns.
Acid room:
There are three tanks in this room. The first tank contains caustic soda, the 2nd tank contains hot
water and the third tank contains cold water. After finishing ever y batch of production the whole
production lines and containers/tanks are washed. And for this purpose, first of all caustic soda is
passed through the pipeline, next hot water and at the last cold water.
Yard for keeping empty bottles:
S.M.V. Beverages Pvt. Ltd. Jagatpur has a large area in side its premises. A large Part of its open
area is used for keeping the empty bottles.
Warehouse:
S.M.V. Beverages Pvt. Ltd. Jagatpur has its own warehouse in side its premises for storing the
produced products. The produced products are sent to the customers from these warehouses. For
transferring the filled bottles inside the company for k-lifts are used.
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PEPSICO PACKAGING PROCESS
PepsiCo is an industry leader in packaging- helping to promote and implement standards for
sustainable packaging.
PepsiCo distribute the products in a variety of packages, each carefully designed to deliver
convenience and appeal to the consumers while protecting the integrity of the products. The
team of engineers and packaging suppliers are dedicated to finding prefer able designs, and
are working continuously towards improving the packaging performance while reducing the
packaging footprint. PepsiCo are committed to bringing the environmental responsibilities to all
areas of the business. PepsiCo are continuously improving the environmental programs and
exploring solutions to environmental challenges through socially responsible, scientifically
based and economically sound methods. Pepsi pass this commitment along to his suppliers
and the consumers in an effort to do our part. The goals are to design and develop packaging
systems that are environmentally responsible throughout their entire life cycle, inspire
consumers who want to live more environmentally sustainable lives by promoting recycling, and
partner with leading organizations to promote sustainable packaging and recycling practices.
Through ongoing engagement with the packaging suppliers, I are working towards a position
where all of our operations use the most environmentally suitable packaging available in their
country of operation.
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.
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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
Supporting responsible disposal practices
Using Less Material in our Packaging
Although beverage containers are the most recycled consumer packaging in the United States ±
and they are designed for recycling, I continue to look for ways to reduce the amount of packaging
used for the products. And I are achieving success. PepsiCo scientists and packaging
specialists have led the way in reducing packaging materials through cost-effective changes in
design and production, known in the industry as "light- weighting." Light-weighting reduces the
amount of raw materials and energy used to make our packages and generates less waste after
the products are enjoyed.
PepsiCo introduced new packaging for half- liter bottles of Lipton iced tea, Tropicana juice
drinks, Aquafina Flavor Splash and Aquafina Alive that contain at least 20 percent less plastic than
the original package. Aquafina has trimmed the amount of plastic used in its most popular bottle -
the half-liter (16.9 oz) bottle - by 35 percent since 2002. This saves more than 50 million pounds
of plastic annually. Aquafina's half-liter bottle weight has changed from 15 grams to 13.2 grams
putting it among the lightest water bottles on the U.S. market.
Reducing and Recycling the Waste
At Frito-Lay, route sales employees return empty cartons from stores to our plants for reuse or
recycling and delivery boxes are used an aver age of six to seven times, saving nearly 5 million
trees a year and keeps 56 million pounds of cardboard away from landfills. For Frito-Lay's
North American and Inter national products, Frito-Lay recycles packaging film waste from our
suppliers' sites for use in various other products (park benches, boards, etc). Our Quaker Oats
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facility in Cupar, Scotland has reduced the amount of corrugate used by 30% over the past 5
years by moving to cases with open tops and reduced sides. Over the last five years, PepsiCo U.K.
has reduced the amount of plastic used to make Tropicana and Copella juice bottles by 18 percent.
In Mexico, our snack business saves more than 100 million boxes per year by using every
box about seven times between the distribution center and point of sale. By recycling our boxes up
to seven times, we save on average each year about 45,000 trees, 1,800,000 mz of water and
1,620,000 liters of fuel. The Latin America Beverages business has optimized beverage packaging
projects across Mexico, Peru, Columbia, Bolivia, Brazil, Argentina, Honduras and Guatemala,
resulting in the removal of over 800 tons of packing annually, specifically reducing the need for
PET resin for bottles, corrugate boxes, bottle-top closures and glass. The average Pepsi bottle
contains 10% recycled plastic, more than any other national soft drink brand. Pepsi-Cola's bottles and
cans are among the most recycled packages made since 1990; more than 150 billion Pepsi container s
have been recycled. Across all our U.S. divisions, initiatives conducted in 2007 to reduce packaging
have resulted in more than 20 million pounds of material reduction across PET bottles, paper board
and corrugated materials.
EVERY DEALER SURVEY (EDS)
The design of competitive marketing strategies begins with competitor analysis. The main
competitor of PepsiCo is Coca- Cola. In market I see three types of outlets where cold drinks are
sold; those are exclusive outlet of PepsiCo, exclusive outlet of Coca - cola and mixed outlet of
PepsiCo and Coca - cola. Every Dealer Survey refers to the survey of all the three types of outlets
of a market segment. I n this survey I collect the data of various promotional and selling tools
(case stock, number of glow sign, dealer board, bunting etc, and number of visicooler) provided by
PepsiCo as well as Coca - cola present at the outlets. Dealer survey is primary method by which
on gets first hand information with respect to the following factors:
Knowledge of market in terms of:
Name and number of dealers
Location of dealers.
Type of dealers.
Market output i.e. case stock, number of glow sign, dealer board, bunting etc, and Number
of visicooler.
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Importance of EDS (Every Dealer Survey):
Market Knowledge:
Dealer survey gives the total profile of the market by knowing
Location of dealers.
The type of dealers.
Number of dealers 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 from dealer that which brand of product is more popular or consumed.
Gather the information about scheme which is given by company to dealers.
The marketing inputs with respect to:-
i. Advertising
ii. Vise cooler size
iii. Customer service
Though PepsiCo has entered the market only 15 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 enabled us to know,
How many exclusive outlets PepsiCo. , Coca cola and how many mixed outlets of brands
are there in a particular market segment?
What are the promotional kits present at all 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?
Apart from these, this survey also provide us the information about the sales every outlets. And this
report is useful for planning or taking decisions about how much amount should be spent for sales
promotion for each outlet.
From these aspects I can know how good I am in the market place and those areas where I are
lacking. It also helps us to find out that in some place or areas were the competitors brand is only
available, then by the help of survey I can find out the reason behind the non availability of PepsiCo
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products in that specific area. The knowledge of case stock will indicate our “case-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 we 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 L, 200L, 220L, 300L, 400L, 440L,
650L, 1200L, and so on. Plan-O-Gram is the process of filling of visi-cooler with 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 into the shelves.
Sequence is as under:
7UP > Mirinda > Mountain Dew > Slice > Aquafina
Pepsi products are available in glass bottles, pet bottles, metal cans, and tetra packs. The number of
bottles, cans and packets filled in visi-cooler.
Objectives
To keep the visi cooler pure.
To attract consumers by displaying their favorite brands or to help the consumers in finding
their favorite flavor and brand.
To attract consumers by displaying different brands.
To promote the sales of all flavors or brands.
To motivate the retailers for effective utilization of visicooler fro selling Pepsi brands
To beat the competitors and to lessen the sale of substitute brands available in the market.
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DISTRIBUTION CHANNEL
The main purpose of trade is to supply goods to the consumers living in far off places. As goods
and services moves from producer to consumers they may have to pass through different
individuals. The middlemen are the connecting links between producers and consumers. They
perform different functions such as buying, selling, storage, etc. the middlemen constitute the
channel of distribution of goods. Thus, a channel of distribution is the route or path along which
goods move from producers to ultimate consumers.
The rout taken by goods as they move from producers to consumers is known as Channel of
Distribution.
From the below diagram I can see that there is just one direct channel i.e. from producer to the
consumer. There are many indirect channels like:
1) PRODUCER > DISTRIBUTER > RETAILOR > CONSUMER
2) PRODUCER > CONSUMER
3) PRODUCER > DISTRIBUTER > CONSUMER
If the producer is producing the product on large scale, it may not be possible for him to sell goods
directly to consumers. As such, it sells goods through middlemen. These middlemen may be
wholesalers or retailers. A wholesaler is a person who buys goods in large quantity from producers:
where as a retailer is one who buys goods from wholesalers and producers and sells to ultimate
consumers as per there requirement. The involvement of various middlemen in the process of
distribution constitutes the indirect channel of distribution. Let us look in to some of the important
indirect channels of distribution.
PRODUCER
DISTRIBUTER RETAILER CONSUMER
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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 quantity to 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 & steel, textile, paper, electric appliances, etc. let us know about
the characteristics of the distributors.
Characteristics of distributors:
i. Distributors buy goods directly from producers and manufacturers.
ii. Distributors buy goods in large quantities and sell in relatively smaller quantity.
iii. They sell different varieties of a particular line of product.
iv. They may employ a number of agents or workers for distribution of products.
v. Distributors need large amount of capital to invest in there business.
vi. They generally provide credit facility to retailers.
vii. He also provides financial assistance to the producers or manufacturers.
FUNCTIONS OF DISTRIBUTORS
a) Collection of goods: A distributor collects goods from producers in large quantity.
b) Storage of goods: A distributor collects the goods and stores them safely in warehouse, till
they are sold out.
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 good to the retailers on credit.
e) Risk taking: The distributor buys finished goods from the manufacturer and keeps them in
warehouse till they are sold.
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SWOT ANALYSIS OF PEPSICO
In order to get clear understanding of the position of Diet Pepsi in the various markets I did
a SWOT analysis from the data obtained from the survey and the various retailer
interviews.
STRENGTHS
Product diversity
Extensive distribution channel
Corporate Social Responsibility (CSR) projects
Competency in mergers and acquisitions
22 brands earning more than $1 billion a year
Successful marketing and advertising campaigns
Complementary product sales
Proactive and progressive
WEAKNESS
Overdependence on Wal-Mart
Questionable practices (using tap water but labelling it as mountain spring water)
Much weaker brand awareness and market share in the world beverage market compared to
Coca-Cola
Too low net profit margin
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OPPORTUNITIES
Growing beverages and snacks consumption in emerging markets (especially BRIC)
Increasing demand for healthy food and beverages
Further expansion through acquisitions
Bottled water consumption growth
Savoury snacks consumption growth
THREATS
Changes in consumer tastes
Water scarcity
Decreasing gross profit margin
Legal requirements to disclose negative information on product labels
Strong dollar
Increased competition from Snyder’s
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COCA –COLA COMPANY PROFILE
Keeping in view of tapping the Indian soft drink market and also developing soft drinks as a
drinking product among Indians. The Coca-Cola in India has setup an independent organizations
which is H.C.C & B.C.C with a capital of 350 U.S.$ each by virtue of sellout decision of the passed
managing director Sh. S. C. Aggarwal.
Hindustan Coca-Cola bottling (N-W) Pvt. Ltd. Najibabad took the complete possession of this
plant, land, machinery, & intellectuals on February 14’ 1998 and since then H.C.C, looking after all
its affairs under company owned bottling plant to establish integrated marketing system in the area.
CORE BRANDS:
Coca-Cola: Developed in a brass pot in 1886, coca-cola is the most recognized and admired
trademark around the globe. Not to mention the best selling soft drink in the world.
Sprite: In 1961, a citrus-flavored drink made its U.S debut, using “Sprite Boy “as inspiration for its
name. This elf with silver hair and a big smile was used in 1940s advertising for Coca-Cola. Sprite is
now the fastest growing major soft drink in U.S and the world’s most popular lemon-lime soft drink.
Fanta : The name “fanta “ was first registered as a trademark in Germany in 1941 ,when it was
used for a few year for a soft drink created from available materials and flavors . The name was
then revived in 1955 in Naples, Italy, when it was used for the:” fanta “orange drink we know
today. It is now the trademark name for a line of flavored drinks around the world.
Diet coke: The extension of the coca-cola name began in 1982 with the introduction of diet coke
(also called coca-cola light in some countries). Diet coke quickly becomes the number – one selling
low –calorie soft drink in the world.
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FABULOUS FACTS ABOUT COCA-COLA
1. The world’s largest spherical coca-cola sign is in Nagoya, Japan a top the dial – Nagoya
building in front of the Nagoya railway station. The sing is a double sphere constructed
from more then 46 tone of steel, more 940meter of neon tubing, and more then, 879 light
bulbs. The outer shape features the coca-cola logo and contour bottle, while the inner
sphere portrays a comic scene with twinkling planets and stars.
2. One of the world’s largest signs for coca-cola is located on a hill called “ELHACHA” in
America, Chile. It is 400 feet wide and 131 feet high and is made from 70,000, 26 ounce
bottles.
3. The first out door paint sign advertising coca-cola still exists. It was painted in 1894 in
Cartersville, Georgia.
4. Coca-cola is one of the world’s most recognizable trademarks recognized in countries that
account for 98 percent of the world’s population.
5. If all the coca-cola ever produced were in 8- ounce bottles. And these bottles were
distributed to each person in the world. There would be 678 bottles or over 42 gallons for
each person.
6. If all the coca-cola ever produced were in 8 – ounce bottles, placed side by side and end to
end to from a lane highway, it would wrap around the earth 82 times.
7. If all the coca-cola ever produced were flowing over Niagara fall at its normal rate of 105
million gallons per second instead of water, the falls would flow for about a day and a half
38 hours and 46 minutes.
8. The largest representation of the world’s best known package 100 foot tall glass contour
bottle is located at world of coca-cola, LAS VEGAS
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COCA-COLA IN INDIA
Coca-Cola, the corporation nourishing the global community with the world’s largest selling soft
drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving new thumbs
up to the Indian soft drink market. In the same year, the Company took over ownership of the
nation’s top soft-drink brand and bottling network. It’s no wondering our brands assumed an iconic
status in minds of world’s consumers.
A Healthy Growth to the Indian Economy
Ever since, Coca-Cola India has made significant investments to build and continually consolidate
its business in the country, including new production facilities, waste water treatment plants,
distribution systems, and marketing channels.
Coca-Cola India is among the country’s top international investors, having invested more than US$
1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its
operations.
A Pure Commitment to the Indian Economy
The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the
pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also
been instrumental in giving an exponential growth to the country’s job listings.
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CREATING ENORMOUS JOB OPPORTUNITIES
With virtually all the goods and services required to produce and market Coca-Cola being made in
India, the business system of the Company directly employs approximately 6,000 people, and
indirectly creates employment for more than 125,000 people in related industries through its vast
procurement, supply, and distribution system.
The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another
25 being owned by franchisees. That apart, a network of 21 contract packers manufactures a range
of products for the Company.
On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the narrow
alleyways of Indian cities – constantly keep our brands available in every nook and corner of the
country’s remotest areas.
These are only some of the facts that speak about our commitment to the growth of the Indian
Economy
PROMISE BY COCA-COLA
The coca-cola company exists to benefits and refreshes every one it touches. The basic proposition
of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our
stakeholders then we successfully nurture and protect our brand, particularly coca-cola. That is the
key to fulfilling our ultimate obligation to provide consistently attractive to the owner so four
business.
More then a billion times every day, thirsty people around the world reach for coca-cola products
for refreshment. They deserve the highest
Quality – every time. Our promise to deliver that quality is the most important promise we make.
and it involves a world-wide , yet distinctively local , network of bottling partner , supplier ,
distributor and retailers whose success is paramount to our own. Our investment in local
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communities in over 200 countries totals billions of dollars in jobs, facilities, marketing, the
purchase of local good and services, and local business partnership. Always and every where , we
pursue continuous innovation in the products we offer the processes we use to make them, the
package we develop and the way we bring them to market .
BRANDS IN INDIA
Coca-Cola
Diet Coke
Thums Up
Sprite
Fanta
Limca
Maaza
Minute Maid Pulpy Orange
Minute Maid Nimbu Fresh
Burn
Kinley Water
Kinley Soda
Schweppes
GEORGIA Gold
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BRAND IN INDIAN ORIGIN
GOLD SPOT: this orange carbonate soft drink was introduced in the early 1950c, and acquired by
the Coca-Cola company in 1993, its tangy taste has been popular with Indian teenagers
LIMCA: It is thirst-quenching beverage features a fresh and light lemon-lime taste and lighthearted
attitude. The limca brand was introduced in 1971 and acquired by the coca-cola company in 1993.
MAAZA: Maaza, launched in 1984 and acquired by the coca-cola company in 1993, is a non
carbonated mango soft drink with a rich, juice & natural mango taste.
THUMPS UP: in 1993, the Coca-Cola company acquired this brand, which was originally
introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian cola.
SWOT ANALYSIS OF COCA COLA
STRENGHT
The best global brand in the world in terms of value ($77,839 billion)
World’s largest market share in beverage
Strong marketing and advertising
Most extensive beverage distribution channel
Customer loyalty
Bargaining power over suppliers
Corporate social responsibility
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WEAKNESS
Significant focus on carbonated drinks
Undiversified product portfolio
High debt level due to acquisitions
Negative publicity
Brand failures or many brands with insignificant amount of revenues
OPPORTUNITY
Bottled water consumption growth
Increasing demand for healthy food and beverage
Growing beverages consumption in emerging markets (especially BRIC)
Growth through acquisitions
THREATS
Changes in consumer preferences
Water scarcity
Strong dollar
Legal requirements to disclose negative information on product labels
Decreasing gross profit and net profit margins
Competition from PepsiCo
Saturated carbonated drinks market
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SOFT DRINK INDUSTRY IN INDIA
India with a population of more than 1.25 billion is potentially one of the largest consumer markets
in the world after china. The consumer market is popularly known as the FMCG market or the fast
moving consumer goods market. Soft drinks come under this category. Soft drink is basically
purchased in India basically for two reasons namely to quench thirst and for refreshment. The
Indian economy currently is passing through a bullish phase with increasing per capita income.
Subsequently the lifestyle of the Indian consumer is also changing with increased spending on
entertainment, refreshment etc. that is why soft drink companies are looking forward to India with
great enthusiasm in the future to increase their revenue.
The soft drink industry in India dates back to the 1940’s when Parle introduced the first branded
soft drink called gold spot. Cola giant coca-cola was the first foreign soft drink company to setup its
shop in India in 1965. Coca-Cola made a very good beginning and dominated the market right from
the word go. It faced no competition at that time. The marketing people did not even need to
publicize coca- cola. This extraordinary success of coca-cola can be attributed to the following
factors,
Absence of contemporary competitive brand.
The giant image of coca-cola in the western countries preceded their entry into the
Indian market.
Indians at that time were very fond of foreign goods.
Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970. Before
this they had introduced a cola flavored drink called pepping which they had to withdrew in the
face of stiff competition from coca- cola. But the overtly conservative Indian government of that
time with special interest in safe guarding the interest of the Indian companies started insisting that
coca-cola should agree on the following points in order to continue in India. Coca-cola decided to
windup its operations in 1977 rather than bowing to the Indian government. The main demands of
the Indian government were,
Dilution of equity, as the government felt that lots of foreign currency was being
wasted.
Manufacturing of the secret concentrate in India.
Disclosure of the chemical composition of the concentrate.
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The exit of coca-cola left a large vacuum in the soft drink market. But this also
accelerated the growth of several Indian soft drinks. Many new soft drinks like Frooti, jump- in etc
were launched in the form of tetra pack. However the bottling plants and the distribution networks
of these companies were not up to the mark and left much to be desired. It took these companies
almost one year to come up with new flavors like Campa cola, Rush etc. to survive in the industry.
However Parle, the pioneer in the soft drinks market blazed its way to national prominence with their
product Thumps Up bearing the slogan µhappy days are here again which became a craze. This
particular slogan helped to win over the loyalists of coca-cola who were in a state of cola shock
or cola depression! Soon the soft drink industry started registering phenomenal growth rates and all
parley products namely Gold Spot, Limca and Thumps Up became the brand leaders in their own
segments. In spite of this the soft drink market had a huge untapped potential. In 1990, coming of
the multinational brand Pepsi and immediately started giving stiff competition to Parley and
Coke. The parent company of Pepsi was founded in 1890 at North Carolina in USA. Its CEO is Roger
Enrico. Pepsi Co India Holdings Pvt. Ltd. In headquartered in Gurgaon and its CEO is Ms. Indra
Nyui. In India it has 34 bottling plants of which 8 are company owned bottling outlets (COBO)
and 26 are franchise owned bottling outlet (FOBO). SMV Beverages is a franchise owned bottling
outlet. Coca-cola reentered the Indian market in 1993 in collaborations with Parley India Ltd.
DISTRIBUTION CHANNEL OF COCA-COLA
BOTTLING PLANT
DEPOT RETAILERS
DISTRIBUTORS CONSUMERS
RETAILERS
CONSUMERS
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RESEARCH
“Mapping the Leading competitor activity in Bhubaneswar
market”
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OBJECTIVE OF THE STUDY
Objective of study is to understand the leading competitor various activity such as; retailer margin
promotional activity/scheme, availability, acceptability, service etc.
Description of the Field
Introduction
The field of the study is Bhubaneswar town of the Odisha. The study was on the market research on
leading competitor and also about the retailers. As it is the Capital of Odisha, 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 “MAPPING THE LEADING COMPETITOR ACTIVITY IN
BHUBANESWAR MARKET”.
As field situation as crucial for the research, I find the field informative for research with the available
heads.
Field
The field of my study covers mix “B” counters retailers in Bhubaneswar city.
RESEARCH METHODOLOGY
INTRODUCTION
Every research needs a systematic or scientific study so that proper authentic data can be
found out.
By systematic it is mean that the study should be best on scientific analysis and follows a
proper and logical methodology.
In order to make our research empirically valid and scientifically relevant a proper research
methodology has been which caters from research design, research tools, techniques
methods, to analysis and proper presentation on data.
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METHODS OF DATA COLLECTION
Primary Data
Secondary Data
Primary Data Collection:-
Primary data can be collected by three ways:
1. Observation
2. Experiment
3. Surveys
But here, only survey method of data collection is preferred which is very suitable to reach the
researchers motto.
Research Instrument: Printed questionnaire was used as the research instrument to collect the
required information. Separate questionnaires were prepared for retailer’s survey and interview was
taken by the help of the questionnaire.
Area of Survey: The survey was conducted in the different area of Bhubaneswar City.
Sampling Plan: - Sampling plan consists of:
a) Sampling Unit: - The retailer of grocery shop, general store and betel shop was selected from
different place of Bhubaneswar.
b) Sample Size: - For retailer’s survey 60 “B” counter retailers were taken randomly as sample
size.
c) Sampling Procedure: - Cluster sampling producer was followed.
d) Sampling Method: Data were collected by retailer’s survey. The retailer directly conducted
and interviewed at their retail counter.
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SELECTION OF SAMPLES
When a small group is taken as the representative of the whole, the study is taken as sampling
study. The whole group from which the samples have been drawn is technically known as universe
or population and the group selected for the study is known as sample. The sample is very small as
compared to the universe which may inconvenient yet it fulfills the aim of the topic selected to be
studied. As sampling method simple random sampling design was taken. Because the samples or
the respondents were selected on the random basis without any bios.
DATA COLLECTION (Tool and Techniques used)
Data are of two types, i.e. Primary and Secondary. To collect primary data from different
source, along with samples, different tool and techniques will be used.
The methods of primary data collection i.e. adopted that present study are interview method
(structured), questionnaires method (both open and closed ended) also the observation
method.
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REVIEW OF LITERATURE
To explore the reasons behind these developments this study will analyze the marketing initiatives
and policies of PepsiCo India in detail with particular focus on its partner relationship management.
The above-mentioned objectives can be achieved by carrying a proper and planned research
involving different types and methods. The data collected followed the foundations for the study
and gave a platform for the analysis and findings which lead to the fulfillment of the objectives.
The data collected for research is primary and secondary. Primary data is collected by observation,
interviews and questionnaires. While secondary data is collected from the internet through different
case studies and reports on the CSD industry. Observation method was carried in Allahabad to
know the market position and market share of PepsiCo products. Interviews of people from the
sales department were conducted to know the sales and distribution network and marketing policies
of PepsiCo India, while questionnaire method was used to know about the customer perception of
the slim diet can portfolio. Secondary data is used to know about the CSD industry and the
Company i.e. PepsiCo.
The data collection and analysis paves way for the recommendation ad conclusion of the study that
reveals some important findings regarding the strategy and corporate structure and strategy of
PepsiCo India
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DATA ANALYSIS AND INTERPRETATION
I have collected the primary data through questionnaire & secondary data using shopkeepers, print
media, internet etc. Here I have taken total 60 mix “B” counter outlets respondents randomly at
Bhubaneswar market.
Q1. How do you rate the retailer’s margin of PepsiCo and coca cola?
Q.2) Why do you like keep it?
INTERPRETATION: The above chart shows that out of the surveyed outlets 60% are
satisfied with PepsiCo margin as compare to Coca Cola margin.
Highly satisfied27%
Satisfactory60%
Average13%
dissatisfactory0%
Highly dissatisfactory
0%
PepsiCo
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
Highly satisfied10%
Satisfactory43%
Average30%
dissatisfactory17%
Highly dissatisfactory
0%
Coca cola
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
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Q2. How do you rate the discount offered by the PepsiCo and coke on bulk purchase?
INTERPRETATION: The above chart shows that out of the surveyed outlets 70% are
satisfied with PepsiCo offered discount as compare to Coca Cola.
Highly satisfied20%
Satisfactory70%
Average10%
dissatisfactory0%
Highly dissatisfactory
0%
PepsiCo
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
Highly satisfied10%
Satisfactory50%
Average40%
dissatisfactory0%
Highly dissatisfactory
0%
Coca cola
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
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Q3. How much time it takes for delivery of PepsiCo and Coca-Cola?
INTERPRETATION: The above chart shows that 80% of the retailers surveyed had good
opinion towards the distributors of PepsiCo.
0
5
10
15
20
25
30
35
40
45
50
6-12 hours 1-2 days 2-7 days > 7 days
Pepsi
Coca Cola
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Q4. How do you rate the schemes delivered to the retailers?
INTERPRETATION: The above chart shows that out of the surveyed outlets 80% are
satisfied with PepsiCo schemes as compare to Coca Cola schemes .
Highly satisfied10%
Satisfactory80%
Average10%
dissatisfactory0%
Highly dissatisfactory
0%
PepsiCo
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
Highly satisfied
0%
Satisfactory50%
Average40%
dissatisfactory10%
Highly dissatisfactory
0%
Coca cola
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
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Q5. Does the company executive visit your shop regularly to convey schemes?
Q6. which brand do you prefer more in your store?
INTERPRETATION: The above chart shows that there is a more demand for Coke Products
in Bhubaneswar market.
0
10
20
30
40
50
60
Yes No
Pepsi
Coca Cola
0
10
20
30
40
Pepsi Coca Cola
21
39
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Q7. Does the company give proper response to queries?
INTERPRETATION: The above chart shows that out of the surveyed outlets 90% are
satisfied with PepsiCo proper response query.
Yes90%
No10%
PepsiCo
Yes
No
Yes70%
No30%
Coca Cola
Yes
No
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Q8. How do rate as per the availability?
Highly satisfied10%
Satisfactory50%
Average30%
dissatisfactory10%
Highly dissatisfactory0%
Coca cola
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
Highly satisfied10%
Satisfactory80%
Average0%
dissatisfactory10%
Highly dissatisfactory
0%
PepsiCo
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
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Q9. How do you rate the Pepsi overall compare to Coke?
INTERPRETATION: The above chart shows that 99% of the retailers surveyed had good
opinion towards the overall service; therefore the company has to maintain the same.
Highly satisfied20%
Satisfactory70%
Average0%
dissatisfactory10% Highly dissatisfactory
0%
PepsiCo
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
Highly satisfied10%
Satisfactory40%
Average50%
dissatisfactory0% Highly dissatisfactory
0%
Coca cola
Highly satisfied
Satisfactory
Average
dissatisfactory
Highly dissatisfactory
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FINDINGS:
The basic problem is that the supply from the plant to the depot takes a long time therefore
distributors are not in the position the supply the required quantity to the retailers in time.
On an average the sales per week of the retailers is between 0-20 cases.
On an average the expected visits are daily.
The sales people and the distributor have not maintained good relationship with the retailers.
Margin of PepsiCo is better than Coca Cola.
Schemes are not properly convey to the retailer.
Acceptability of PepsiCo is less in the market.
Visicooler problems are not solving in time.
B counter are delivering less product.
There is no coordination between Pre sales representative and delivery agent.
Order base delivery system is followed more than ready base delivery system.
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RECOMMENDATION:
I give the following suggestion that can be implemented to increase the retailer satisfaction and
profitability of the company.
More emphasis should be given in retaining and building loyalty among retailers while at
the same time new retailers should be encouraged to sell Pepsi.
The PSRs are found to be highly demotivated to push to product in the market. Thus I
suggest the involvement of the concerned authorities to motivate them in an appropriate way
as per the boundaries of the organization.
The orders brought by the PSRs should be verified by the CE and ADC and to deliver the
same quantity as per the schemes to verify as well.
The demand for the product like SLICE, Mountain dew is found to be high and the products
are not in adequate amount to meet the demand. the reason I found is the lack in empty
bottles of the above mentioned products .thus the collection of empty bottles of these
products should be collected frequently from the retailers leading to filling it up again and to
meet the demand to some extent.
The curbside debrief is be collected from the PSRs and a random call to any of the retailer
should be given by the ADC to find out whether the curbside sheet is truly filled up or not.
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LIMITATION:
1. Some of the retailer was not ready to be interviewed due to lack of time and some are not
interested in getting interviewed in fear of disclosing their privacy.
2. Sometimes retailers were not able to recall the fact which was asked the question.
3. Scorching heat in the Bhubaneswar city came as a barrier while doing the project.
4. Often retailers are reluctant to provide information related to my project.
5. Due to time constant we are unable to cover whole outlets in Bhubaneswar market.
6. Sample size was taken randomly 60 outlets; it is less as compare to the market
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CONCLUSION:
Everything in this world is made to utilize properly but should be reach at 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, “Far from eye, far from heart” .
Thus marketing role play a very important role in achieving the objectives of a company.
Undoubtly, value utility is created by the manufacture of product or service but time and place
utilities are created by marketing role. According to Drucker, “both the market and the
distribution channels 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
disproportion distortion in prices, a dependable and efficient distribution distortion in prices, a
dependable and efficient distribution system is very much essential. The distribution system
creates a value added to all most all products.
All from the above study not withstanding its restructuring efforts, there is significant
difference between PepsiCo and Coca Cola; such as retailer margin promotional activity/scheme,
availability, acceptability, service in terms of satisfaction of shopkeeper at Bhubaneswar.
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ANNEXURE
Survey: Mapping the leading competitor activity in Bhubaneswar market.
Name of the Retailer:
Name of the Outlet:
Area
Relevant Channel:
[ ] Convenience
[ ] Grocery [ ] Eatery
[ ] Bar
1) How do you rate the retailers margin of PepsiCo and coca cola?
Highly satisfied Satisfactory Average dissatisfactory highly
dissatisfactory
PepsiCo
Coca Cola
2) How do you rate the discount offered by the PepsiCo and coke on bulk purchase?
Highly satisfied Satisfactory Average dissatisfactory Highly
dissatisfactory
Pepsi
Coca Cola
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3) How much time it takes for delivery of PepsiCo and coke?
PepsiCo co Coca Cola
6 – 12 hrs
1-2 days
2-7 days
more 7days
4) How do you rate the schemes delivered to the retailers?
Highly satisfied Satisfactory Average dissatisfactory Highly dissatisfactory
PepsiCo
Coca Cola
5) Do the company executive visit your shop regularly to convey schemes?
PepsiCo Coca Cola
Yes
No
6) which brand do you prefer more in your store?
PepsiCo [ ]
Coca Cola [ ]
7) Does the company give proper response to queries?
PepsiCo Coca Cola
Yes
No
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8) How do rate as per the availability?
Highly satisfied Satisfactory Average dissatisfactory Highly dissatisfactory
PepsiCo
Coca Cola
9) How do you rate the PepsiCo overall compare to Coke?
Highly satisfied Satisfactory Average dissatisfactory Highly dissatisfactory
PepsiCo
Coca Cola
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BIBLIOGRAPHY
www.pepsizone.com
www.pepsiindia.com
www.wikipedia.com
www.coca-colaindia.com