Final Pepsi Report Submitted

8/8/2019 Final Pepsi Report Submitted

1/52

SUMMER PROJECT REPORTON

CONVERSION OF TRADITIONAL MARKET INTO

MODERN MARKET

WITH

REFERENCE TO PEPSICO

SUBMITTED TO- SUBMITTED BY-

MR. ASHEETH RAJIV RAVI KUMAR

MARKET DEVELOPMENT MANAGER GJU09262 JULY09-11

Performance with Purpose 1


2/52

FACULTY GUIDEMr. MAHENDRA SRIVASTAVA (Professor Marketing)

PREFACE

I appreciate NIILM SCHOOL OF BUSINESS (NSB), to introduce project work

and widen the academic knowledge to bring the student closer to the practical

work. This is undoubtedly a valuable and appreciable addition to the institution

education. The most important part of Master Degree is co-ordination between

theory and practical. I studied CONVERSION OF TRADITIONAL MARKET

INTO MODERN MARKET WITH REFERENCE TO PEPSI. I will be

happy if this report serves the purpose efficiently and meaningful.



3/52

AKNOWLEDGEMENT

I take this opportunity to acknowledge the efforts of the many individuals who helped me make

this project possible. First and foremost, I would like to express my gratitude to my Industry

guide MR. Asheeth Rajiv, Market Development Manager, for his valuable guidance which

was a good learning experience in order to make my efforts successful. He has helped provide

the scope and direct the research in a manner to make it most beneficial. The project would have

been impossible without his expert guidance.

I thank all the Pearl Drinks LTD employees, for their kind assistance on field visits. Special

thanks to MR. Vipin Bhatia, Territory Development Manager PDL, Mr. Vikas Kumar,

Assistant Sales Development Manager, Jagmohan Joshi Customer Executive, Sanjay

Mohanthy, Merchandiser for their constant supervision and guidance.

Heartfelt thanks to all the 87 respondents who helped me conduct a fruitful research for the

company by giving their honest responses.

I also thank the Faculty Guide for the project, Mr. MAHENDRA SRIVARTAVA for his

valuable inputs from time to time.

I would also like to thank the NIILM SCHOOL OF BUSINESS, DELHI, for providing us the

opportunity to do an internship at PEPSICO.



4/52

RAVI KUMAR



5/52

TABLE OF CONTENTS

PARTICULARS PAGE

INTRODUCTION 5

INDUSTRY PROFILE 6-8

ANALYSIS AND INDUSTRIAL CHALLENGES 9

COMPANYS OVERVIEW 10-20

ORGANIZATIONAL STRUCTURE 21

PEPSIS DISTRIBUTION SYSTEM 22

RETAIL CHANNEL 23

BUYING BEHAVIOUR OF THE SOFT DRINK INDUSTRY 24

RETAILERS PERCEPTION 25

OBJECTIVES OF CONDUCTING THE ABOVE STUDY 26-27

OUTLET ANALYSIS 28-38

COMPARISION OF MARKET SHARE 39-43

RECOMMENDATION 44

CONCLUSION 45

QUESTIONNAIRE 46-48

BIBILOGRAPHY 49



6/52

REFERENCES 50

INTRODUCTION OF THE STUDY

Having food is the necessity of human being and taking various kinds of beverages is todays

fashion, more than the necessity. This gives food & Beverage industry a high level of market

segment, a variety of products, and a number of companies. Food and Beverage Industry

represents fresh, frozen, chilled, and long shelf-life food and beverage products. My study is also

related to the same industry. PEPSICO is a Fortune 500, Americanmultinational corporation

with interests in manufacturing and marketing a wide variety of carbonated and non-carbonated

beverages. 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.

In Tier 1, 2 and 3 cities in India, 29% of Indian consumers report consuming carbonated

beverages/soft drinks during a fixed time of the day suggesting consumption has become aroutine part of their day, with most consumption taking place during the 'afternoon to evening'

time period. Not surprisingly, consumption is highest in Tier I cities such as Mumbai, Delhi,

Kolkata, Chennai, Hyderabad and Bangalore. The level of consumption is seen to increase with

rising household incomes (with the exception of the highest income level) while decreasing with

age.

OBJECTIVES OF THE STUDY-

To understand the stock position of Pepsi brand and its competitors at different outlets. To study the brand awareness of PepsiCo among the customers.

To know about the reason of irregular supply in the outlets.

To identify the retailers opinion towards Pepsi products.

http://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/w/index.php?title=Punjab_Agro_Industrial_Corporation&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Punjab_Agro_Industrial_Corporation&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Voltas_India_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/w/index.php?title=Punjab_Agro_Industrial_Corporation&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Voltas_India_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Fortune_500


7/52

To analysis its Supply chain and customer relationship management

To know visis condition such as its size, type, maintenance problem.

To increase the visibility.

To about Visi audit (Visi purity, Visi charging, Visi POG).

Sell the products to the retailers who are not willing to buy Pepsi product.

INDUSTRY PROFILE

Fast moving consumer goods (FMCG), are products that are sold quickly at relatively low cost.Though the absolute profit made on FMCG products is relatively small, they generally sell in

large quantities, so the cumulative profit on such products can be large. Examples of FMCG

generally includes a wide range of frequently purchased consumer products such as toiletries,

soap, cosmetics, toothpaste and powders, detergents etc, It also includes pharmaceuticals,

consumer electronics, packaged food products and drinks, although these are often categorized

separately.

Soft drinks industry:

Non alcoholic soft drink beverage market can be divided into fruit drink and soft drink. Soft

drinks can be further divided into carbonated and non carbonated drinks. Cola, lemon and



8/52

oranges are carbonated drinks while juices come under non-carbonated category. The soft drinks

market till early 1990s was in hands of domestic players like Thumps Up, Limca, Campa cola

etc. but with the opening up of economy and coming of MNC players Pepsi and Coca Cola the

market is totally under their control. Worldwide, Coke is the leader in carbonated drinks market.

Pepsi entered Indian market in 1991 and Coke re-entered in 1993.



9/52

SEGMENTATION:

The soft drink market can be segmented on the basis of place of consumption and on the basis of

type of products.

The segmentation on the basis of place of consumption divides the market into three parts: On-premise- consumption of soft drinks in. restaurants, railway stations, cinemas etc,

At-home consumption of the soft drink purchased for consumption at home.

The market can also be segmented on the basis of types of products into Cola products and

non-cola products.

Cola products account nearly 62% of the total soft drinks market. The brands that fall in

this category are Pepsi, cola, Thumps Up, Diet Pepsi etc.

Non-cola segment, which constitutes 36%, cam be divide into 4 categories based on the

type of flavour available, namely:

Orange

Cloudy lime

Clear lime

Mango

Orange flavour based soft drinks constitutes around 17% of the market. The segment is largely

dominated by national brands like Fanta of Coca-cola Co. and Mirinda Orange of Pepsi Co. restof the market is in hands of smaller brands like Crush (earlier Cadbury Schweppes and now of

Coca Cola), Gold Spot etc.



10/52

Cloudy Lime flavour constitutes 14% of the market and is largely dominated by Limca of Coca

Cola and Miranda Lemon of Pepsi Co.

Clear Lime this segment of the market witnessed good growth initially with all; the players

launching their brands in the segment. But now the growth in the segment has slowed down. The

brands available in this segment are 7 Up , Mountain dew of Pepsi, Sprite of Coca-Cola and

Canada Dry( earlier of Cadbury Schweppes and now of Coca Cola). The segment constitutes

3% of the total soft drinks market.

Mango flavour segment constitutes 2% of the total soft drinks market and it directly competes

with mango based fruit drinks like Fruity. The leading brands in this segment are: Maaza of

Coca Cola and Slice of Pepsi.

There is very thin line of difference between the clear and cloudy lime. The most obvious feature

is that clear lime has to be bottled in green bottles as sunlight harms the drink and changes the

taste.

There are some small local brands at city or regional levels. Most of these are either merging

with two big players (Coca Cola and Pepsi) or they command a very small less than 3% of the

total market in their respective areas.

The soft drink being a FMCG has a wider and scattered market. Thus to enable concentrated

effort of marketing activities in different scattered market, for effectively setting the entire

market is broken down into the following segments.

Route market :

Outlet in this market caters to those people who are engaged in shopping, eating outgoing to

and from work, in amusement center etc.

Home market :

Outlets in this market cater to people buying predominantly for home consumption, either by

case or loose bottles.



11/52

At work markets :

Outlets in this market cater to people working in offices, factories etc. an attempt is always

made to make soft drinks readily and conveniently available all day long while people are

actively working.

Analysis and Industry Challenges:

In order to survive in this environment, companies must consider the market trends that will

likely shape the industry over the next few years. This will help soft drink companies to

understand the challenges they will encounter and to turn them into opportunities for process

improvement, enhanced flexibility and, ultimately, greater profitability.

Market trends for the soft drink industry can be summarized by six fundamental themes:

Changing consumer beverage preferences, featuring a shift toward health-oriented

wellness drinks

Growing friction between bottlers and manufacturers in the distribution system

Continually increasing retailer strength

Fierce competition

Complex distribution system composed of multiple sales channels Beverage safety concerns and more-stringent regulations

Consumers turn to wellness and healthy drinks



12/52

In much of the developed world, a significant portion of the population is overweight or obese.

This includes two-thirds of Americans and an increasing number of Europeans. Consequently,

many people have started to actively manage their weight and change their lifestyles, a shift that

is reflected in their choices in the beverage aisles:

Demand has increased for beverages that are perceived to be healthy

Energy drink consumption has also climbed, due to the increasingly active lifestyles of

teenagers.

This trend towards healthier drinks has created a number of new categories, and changed

the consumption trends of the beverage industry as a whole.

While previously dominated by carbonated soft drinks, the industry is now more evenly

balanced between carbonates, and product categories with a healthier image, such as

bottled water, energy drinks and juice

COMPANYS OVERVIEW

International

Pepsi Company is a large conglomerate with interests in manufacturing, marketing and

selling a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and

grain-based snacks, and other foods. PepsiCo is a world leader in convenient snacks, foods and

beverages, with revenues of more than $39 billion and over 185,000 employees.

PepsiCo International (PI)

PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and

Africa.



13/52

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 sustainability

vision which states:

PepsiCos 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. Edward Durrell Stone, one of Americas foremost architects, designed the

seven-building headquarters complex. 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.



14/52

Company leadership

PepsiCo's History Timeline

Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W.

Lay, Chairman and Chief Executive Officer of Frito-Lay found PepsiCo, Inc., through the

merger of the two companies. Caleb Bradham, a New Bern, N.C. pharmacist, created pepsi-Cola

in the late 1890s. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded

by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in

1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M.

Kendall is president and chief executive officer. The new company reports sales of $510 million

and has 19,000 employees.

PepsiCo brands are available in nearly 200 countries and generate sales at the retail level

of more than $98 billion. Some of PepsiCo's brand names are more than 100-years-old, but the

corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola



15/52

and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats

Company, including Gatorade, in 2001 Headquartered in Purchase, New York, with Research

and Development Headquarters in Valhalla, NY, The Pepsi Cola Company began in 1898, but it

only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also

owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon

Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998 and Quaker

Oats in 2001.PepsiCos mission is To be the world's premier consumer Products Company

focused on convenient foods and beverages.

The company consists of

Frito-Lay and Pepsi Join

In February 1965, the Board of Directors for Frito-lay, Inc. and Pepsi-Cola announced a

plan for the merger of the two companies. On June 8, 1965,

shareholders of both companies approved the merger of Frito-Lay and Pepsi-Cola Company, and

a new company called PepsiCo, Inc. was formed. At the time of the merger, Frito-Lay owned 46

manufacturing plants nationwide, had more than 150 distribution centers across the United

States, and was listed on the New York Stock Exchange.

Frito-Lay North America and Frito-Lay International

PepsiCo's snack food operations had their start in 1932 when two separate events took

place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product a

corn chip and started an entirely new industry. The product was Fritos brand corn chips, and

his firm became the Frito Company.

Today, Frito-Lay brands account more than half of the U.S. snack chip industry. PepsiCo began

its international snack food operations in 1966. Today, with operations in more than 40countries, it is the leading multinational snack chip company, accounting for more than one

quarter of international retail snack chip sales. Products are available in some 120 countries.

Pepsi-Cola North America and PepsiCo Beverages International



16/52

Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola,

founded PepsiCos beverage business at the turn of the century. Today consumers spend about

$33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products including

Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands account for nearly

one-third of total soft drink sales in the United States, a consumer market totaling about $60

billion.

Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled

water, Fruitworks and All Sport.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the

biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola also markets

Frappuccino ready-to-drink coffee through a partnership with Starbucks

Quaker Foods North America:

The Quaker Oats Company was formed in 1901.

PepsiCo Americas Beverages (PAB)



17/52

PAB includes PepsiCo Beverages North America and all Latin American beverage

businesses.

PepsiCo Americas Foods (PAF)

PAF includes Frito-Lay North America, Quaker Foods North America and all Latin

America food and snack businesses, including Sabritas and Gamesa businesses in Mexico.

Gatorade/Tropicana North America :



18/52

Vision of PepsiCo



19/52

"To be the world's premier consumer Products Company focused on conveniencefoods and beverages. We seek to produce healthy financial rewards to investors as we

provide opportunities for growth and enrichment to our employees, our business partners

and the communities in which we operate. And in everything we do, we strive for honesty,

fairness and integrity."

PepsiCo in India

PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues ofmore than $39 billion and more than 185,000 employees across the world. Its world-renowned

brands are available in nearly 200 countries and territories. PepsiCo gained entry to India in

1989 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial

Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi

until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and

ended the joint venture in 1994. Firstly Pepsi was banned from import in India, in 1970, for

having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi

arriving on the market shortly afterwards.



20/52

PepsiCo has grown to become the countrys largest selling food and beverage companies.

One of the largest multinational investors in the country, PepsiCo has established a business,

which aims to serve the long term dynamic, needs of consumers in India.

PepsiCo India and its partners have invested more than U.S. $700 million since the

company was established in the country in 1989. In India, PepsiCo provides direct employment

to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.

The group has built an expansive beverage, snack food and exports business and to support the

operations are the groups 43 bottling plants in India, of which 15 are company owned and 28

are franchisee owned. In addition to this, PepsiCos Frito Lay snack division has 3 state of the

art plants. PepsiCos business is based on its sustainability vision of making tomorrow better

than today. Our commitment to living by this vision every day is visible in our contribution to

our country, consumers, farmers and our people.

Refreshment beverages:

MOOD KO DO LEMON KA LIFT ORANGE DIKHA MOOH BOLA MIRINDA



21/52

THE PUREST PART OF YOU

DARR KE AAGE JEET HAI YEH HAI YOUNGISTAAN MERI JAAN

REHYDRATE, REPELNISH, REFUEL

100% natural fruit juices



22/52

PURE MANGO PLEASURE

PepsiCos snack food company

PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market

and was amongst the first companies to eliminate the use of trans fats and MSG in its products.

It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional

namkeen snacks under the Kurkure and Lehar brands. The companys high fiber breakfast



23/52

cereal, Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the

choices available to the growing health and wellness needs of our consumers. Frito Lays core

products, Lays, 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.

Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up

Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports

drinks - Gatorade, and 100% natural fruit juices and juice based drinks Tropicana, Tropicana

Twister and Slice. Our local brands Lehar Evervess Soda, Dukes Lemonade and Mangola.

The market can also be segmented on the basis of types of products into cola products and non-

cola products. Cola products account for nearly 61-62% of the total soft drinks market. The

brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke, Diet Pepsi etc.

Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of

flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.

PepsiCo SKUs



24/52


Stock keeping unit issomething which makesPEPSICO different fromothers; it has almost all thepossible SKU.


25/52

Customer Executives (JagmohanJoshi)

Assistant Sales and Development Manager (Mr. VikasKumar)

Territory DevelopmentManager (Mr. Vipin

Bhatia)

UnitManager

MarketingDevelopment

Manager (Mr. DilipKaul)

(

SalesTrainees

Marketing DevelopmentCoordinator (Sandeep

Jha)

ORGANIZATIONAL STRUCTURE



26/52

PEPSICOS DISTRIBUTION SYSTEM



27/52

Consume

r

Market /

Retailers

Distributo

r

PepsiCos

Plant


Indenting

Primar

y Sale

Second

arySale


28/52

As shown in the above hierarchy how a product reaches from the Pepsis plant to the consumer.

I was allotted one of the bottler (Pearl Drinks limited) whose job is to receive the product from

the manufacturing plant and then supply the product to the retailers or consumers via various

methods of transportation. Before reaching to the consumers the beverage is already sold twice

as shown in the above hierarchy. Pepsi uses its own trucks to deliver the beverage to retailers,

which is also a good mode of promotion.


EateryGrocery Convenience


29/52

Eatery Channel:- Includes different hotels, restaurants etc.

Grocery Channel:- Includes different grocery shops.

Convenience Channel:- Includes different kiosks are which is convenient to generalPublic.

Buying Behavior of soft drink industry:

Soft drinks come under the category of products on impulse. This attitude of impulse

buying is slowly changing to occasion-led buying and also to some extent consumption

through home refrigeration particularly in urban areas.

The market is slowly moving from alcoholic carbonated drinks to fruit based drinks

and also plain bottled water due to lower price and ready availability . Consumers

purchase soft drinks particularly to quench thirst and therefore on travel not having

access to hygienic water reaches out for soft drinks.



30/52

Brand awareness plays a vital role in purchase decisions. Availability in the chilled

form also plays a crucial role in purchase decisions. This has made both the companies to

push its sales and to increase its retail distribution by offering Visi coolers to retailers

Why is there no aversion to consumption of soft drinks to any age group, the main

consumers of this market are people in the age group of 30 and below.

Product differentiation is very low, as all the products taste the same. But brand loyalty

is high in the case of kids and people in the age group of 20-30 years.

RETAILERS PERCEPTION:

A survey was conducted to study the retailers views of the present market, future trend and the

consumer behavior patterns. The findings of the survey are as follows:

Retailers stated that the consumers are loyal to the particular segment of the soft drink

i.e. cola, orange or lemon. But as far the loyalty for the brands in each segment is

concerned, it is not very significant.



31/52

43% of the retailers surveyed told that insoft drinks advertising is the key component in

driving sales. While 32% stated promotional schemes and 20% brand loyalty as the

reason.

As consumers are not very brand loyal where the purchase of soft drinks is concerned,

the retailer push becomes a critical issue. They usually sell the product in which they

get the maximum benefit. For this, the companies try to offer them higher margins.

While distributors get margin of Rs8-9 per crate (1 crate= 24 bottles) at 3-4% of MRP,

retailers are given a margin of 10-12% of MRP. The retailers are not happy with this, as

the cost of refrigeration is very high for soft drinks . To overcome this problem the

companies are offering visi-coolers schemes to their main retailers.

O bjectives of conducting the above study:-

To know visis condition such as its size, type, maintenance problem: - Company

wanted an accurate database of visis. They were having database but it was not accurate

such as in some outlets Visi is PVC but in record it was GRAVITY. In some outlets Visi



32/52

is 300 liters. But it was 200 or 400 Liters in records. In other hand company wanted to

check visis condition like are they having any maintenance problem or not?

To know retailers problem regarding supply, scheme and others: - What types of

problems retailers are facing? It was companys one of the main objective. Are they

getting proper supply or not? Are they getting schemes or not? Suppliers behavior is

perfect or not?

To know about Visi audit (Visi purity, Visi charging, Visi POG): - Company also

wanted to know that are retailers using visis for PepsiCo products or not? Are they using

it for personal use or for keeping other companys products?

To know about Rack audit (rack purity, rack charging): - Company wanted to know

how many retailers is using rack audit norm? It means are they arranging rack in

appropriate manner and filling Visi according to companys policies?

To know about SKU availability: - Company also wanted to know how many retailers

are having full products and in various sizes like Pepsi (200ml. , 300ml. ,1 liter, 2 liters),

Pepsi My Can, Miranda (200ml. , 300ml. ,1 liter, 2 liters), Nimbooz (200ml. , 300ml. ,1

liter, 2 liters),same case in Tropicana, Mountain dew etc.

To know about FMO count (PEPSI, MIRINDA): How much stock retailers are

having of Miranda, Pepsi? Through this company estimates its sales. In it we calculate

no. of bottles like Joshi Cold Drink is having 50 bottles of 500ML, and 15 bottles of 2

liters of Pepsi. In this case I will mention 65 in Pepsi FMO count.



33/52

To analysis its Supply chain and customer relationship management: - Company

wanted to know that are Retailers getting PepsiCo products by proper supply chain? And

in other hand are retailers getting full satisfaction by customer relationship management?

To know about market condition of its visis as compare to competitors: - Company

wanted to know that competitors visis {coca-cola} are serving in what manner. It means

are they providing any special size or features? Company can improve the quality,

features of its visis by analysis its competitors strategy.

ANALYSIS ON THE BASIS OF SURVEY-



34/52

Methodology:

To achieve the objective of the project following methodology will be used. Data required for

the analysis and fulfillment of our objectives shall be collected from two sources. They are

Primary sources

Secondary sources

Primary Data:Primary data is collected from the customers through a structured questionnaire. It includes the

first hand information from the outlets. It can view as a survey. The questionnaire was especially

designed to find out what is the brand awareness and the main competitors of Pepsico.

Secondary Data

Secondary sources include the information collected from the search engines (through internet),

magazines, various books and journals are being used for collecting the relevant data

After gathering the data from those two sources the data was analyzed, tabulated and interpreted

and finally suggestions were offered for the betterment of the company.

Data Analyzing Tools:

After gathering the data from the Primary and Secondary sources the data was analyzed,

tabulated and interpretations were written down with the help of graphs and charts, with the help

of Microsoft Excel and Microsoft Word.



35/52

DATA ANALYSIS

There are 87 outlets in total covered by me. We can show no. of outlets according to the

different markets. Both the routes are being covered by the company the companys vehicle

only.

Location A = Lajpat Nagar Amar colony.

Location B = East of Kailash and Sant Nagar.

Location of the market Outlets

Location A 69

Location B 27

Locations Chart

LOCATION A:

Visi Size: - This location has 69 outlets. We can mention various sizes of Visi coolers with their

no. of outlets through following table:

Visi Size No. of Outlets

400Ltrs. 01340Ltrs. 18

280Ltrs. 15

220 Ltrs. 12

165Ltrs. 5



36/52

Visi Purity, Rack Purity and Visi POG: -These are the most important points in our research;

we can present it by following table.

Options Visi Purity Rack Purity Visi POG

Yes 42 42 06

No 24 24 60

(No. of Outlets)



37/52

Visi Charging and Rack Charging: -In this location we have 65 outlets, in this location we

got these values, which we can mention by following table.

Type 0% to 50% 51% to 75% 76% to 100%

Visi Charging 03 26 37

Rack Charging 07 29 30

(No. of Outlets)



38/52

LOCATION B:

Visi Size: -In this location 27 outlets are situated, we got following values.

Visi Size No. of outlets

400 Ltrs. 0

340 Ltrs. 13

280Ltrs. 05

220Ltrs. 06

Visi Purity, Rack Purity and Visi POG: -These are the most important points in our research;

we can present it by following table.

Options Visi Purity Rack Purity Visi POG

Yes 47 49 7



39/52

No 38 36 78

(No. of Outlets)

Visi Charging and Rack Charging: -In this location we came to know following results.

Options 0% to 50% 51% to 75% 76% to 100%

Visi Charging 15 23 47

Rack Charging 23 30 32

(No. of Outlets)

Implementation s to improve PIs Share



40/52

R egular Supply: As the number of outlets in the area was huge in numbers and it was

difficult for one vehicle to cover the both the markets so designed the route for both the areas

and segregated the market according to the demand of the retailers and after calculating the sale

per day. Now 45 shops are being covered by the distributor and rest 51 outlets are being covered

by the companys vehicle.

Distributors entry : Now as the half of the market is being covered by the distributor he has all

varieties of Pepsi is available in the market as he is new in the market so in order to sell more he

will keep all the varieties so ultimately the sale of all the varieties will in balance.

Centralized all the P an Wall a s : As the aquafinas share in the market was just 10% as

compare to Bisleri and Kinley the other brands, so to enter into their mind offered them free

umbrella and started the supply. Now almost all the pan walla of amar colony is selling

aquafinas water.

Entered into new segment : As the share of water was very low as compare to competitors, we

entered into the absolute new segment that is Chemists shop and Amuls shop where in their

demand was nothing and happily selling Aquafina and Nimbooz.

Installed new visis in the market : As the reach was also the problem and many shops werecapable of selling more Pepsi but due to communication gap they were selling less as compare totheir potential so replaced their visis and where new visis required given new visis to increasethe reach.



41/52


42/52

Newly Indentified Outlets

SNo. Outlet Name

1 Govinda store

2 DMS 321/322

3 Golden shop

4 Mansha store5 Mohit juice center

6 Sindhi omlette

7 Batra store

8 Amul shop

9 Vijay Pan

10 Ankur pan

11 Ravi Pan

12 Subneet Store

After the implementation of these activities the share of

Pepsi got changed from 30% to 54%. Here is the

attachment .



43/52


Outlet Name Pepsi's share as on

start date

Pepsi's share as on 11th June Improvement/

DegradationAhujha Store 30 44 14

Goldy Store 30 75 45

Kalka Bakery 30 66 36

gandhi store 45 50 5

Harish Store 0 33 33

Ishwar general store 0 50 50

Bisham store 50 54 4

Maa Jagdambe 0 25 25

Rajesh store 0 66 66

Hari Store 50 57 7

DMS 861 0 75 75

Hasija store 0 0 0

Kukreja(Wholeseller

)

50 54 4

Golden Hut 0 50 50

Lal Sai 30 37 7

makhani store 50 50 0

Raj store 30 75 45

Sachdeva Telecom 50 50 0

Laxmi store 30 66 36

Maa sakuntlam 50 72 22

Balaji Store 50 55 5

Taneja store 40 50 10

krishna store 30 75 45

Comparison of Pepsis Share as on the start and on the 11th June.


44/52

Distributor. Pan Wallas.

Regular Supply.Eateries.

Gr aphical Representation of the Market Share

Share Starting 11th June

0-25 20 3

26-50 61 48

51-75 2 28

76-100 1 5


Finding after Analysis


45/52

Centralization of all Pan Walla of Amar colony to increase the sales of Aquafina

(water).

Regular supply lead to increase in the sales.

4-5 coke monopoly shops are now selling Pepsi.

New eateries like Zaika, North Indian food, New Aggarwal Sweets found out and

supply got started lead to the new scope for Pepsi.

Supply started at Chemist shops.

Division of the route as the companys vehicle was covering two routes so divided

the route, now the supply is being done by the distributor.

Recommendation

First of all company will provide all its dealers and retailers to all sort of promotion

equipment such as glow sign board, banner, rack, freeze, etc. in time so that they increase

their sales which is benefited both retailer as well as company.

Salesman should have good interaction with the dealers, which result Company in

increase in sales. Company executives should visit the counter on weekly basis.

Executives should take the feedback from the dealers about the service of the sales man

and the distributors. Regular visit of technician is required to solve the problems of Freeze (Visi) in the

market at the right time.

The distribution channels need to be improving so that retailer/dealer will get soft drinks.



46/52

Promotional advertising must include some Indian stars (film & cricket).

Dealers are the good intermediaries so the company should give more packages to the

dealer, by which they can looks towards the high sales of this particular brand.

Kids constitute the second largest segment of the soft drink market. So, more & more fun

based advertisement for the brands should be necessary. Some life style based

advertisement is also necessary.

There should be more focus on 100% availability so that Pepsi dont lose sales & market

share.

The company should start survey time to time to know the grievances of retailer as wellas consumers.

More & more research should be made to find new segment & more profitable marketfor the product.

CONCLUSION

The project was a great experience for me in order to study the marketing aspects in the world. Itwas a great opportunity for me to apply what I have studied.

This industry is a place where two major players are there in the world. So with one player

makes any changes ultimately the other has to introduce that change willingly or unwillingly.

PepsiCo gave me an opportunity and scope to understand the soft drink industry and itsmarketing structure and distribution channels.



47/52

Lot of valuable information regarding the company and also the retailers, has been collected

from the survey, which helped me to understand the real problems faced by the marketers todistribute and also make retailers to sell the companys products in the market.

I understood the difficulties involved in marketing in the present scenario.

The suggestions made to the company were applied for the growth and benefit for the companyin order to increase its market share and to become the market leader in the soft drink industry,because a large number of competitors craving for the same market.

Thus, finally it can be said that the industry needs a lot of channel management activities to doalong with various promotional strategies for the customers. I wish the company achieves its

objectives soon.The strength or the positive side which I noticed during my project work was-

Strong Brand Image- There is a strong brand image of PEPSI among the youngsters as well asother people.

Quality and Taste- PEPSI provides good quality and taste of the products to the customers.

Few grounds on which the brand PEPSI needs to work upon are-

Customer satisfaction- As the most important thing is the satisfaction of the customers hence itneeds to be improved for both retailers and consumers.

Survey for Analysis

Name of the Shop/Owner: Date of Survey:

Phone No.:



48/52

1. Which company drinks are available in your shop:

Pepsi Miranda

Lemon Dew

7 Up Lehar Soda

Diet Pepsi Aquafina

Slice Nimbooz

Total

2. Coke Company drinks available in shop:

Thumps up Fanta

Coke Sprite

Kinely Water Kinely Soda

Limca Mazza

Diet Coke Minute Maid

Total

3. Your Sales in Bottle per day_________________ bottles.

A. Pepsi Bottles Sold________________

B. Coke Bottles sold_________________

4. Do you require Service by drinks Company as follows

A. Daily B. Alternate Days C. Weekly 2 times

5. Are you satisfied with Pepsi Service?

A. Good B. Satisfactory C. Bad

6. Are you satisfied with Coke Service?

A. Good B. Satisfactory C. Bad



49/52

7. Trade Schemes offered by which company is good to you?

Pepsi Coke

8. Consumer Promotions offered by which company is best, what is Pepsi

present Consumer promotion?

Pepsi Coke

____________________________________

9. Do you feel T.V advertisements by drink companies help in more sales of

Drinks?

Yes No

10. How are sales of drinks this year Vs 2009 in your shop?

Good Less Same

11. What is Percentage of juice based soft drinks sales in your shop?

30% 20% 10%

12. Condition of Pepsi Visi Cooler?

Full of Pepsi Drinks

Full of Pepsi+ Coke Drinks

Pepsi Drinks+ Other Packs

13. Why do you keep other products in Pepsi Cooler?

Electrical Bill



50/52

No Own Cooler

14. What is the percentage contribution of soft drinks business in your total

business?

_____________________________

15. What is the shop keeper suggestion to improve Pepsi Company Sales in

2009?

______________________________________________________________

16. Soft Drinks are consumed by mostly?

a) Male b) Female c) By All d) By Youth

17. How do you (Retailer) buy soft drinks?

a) Pepsi Cash Credit

b) Coke Cash Credit

After analyzing the survey I came to the conclusion that there are various problems in

both the markets:

Lack of regular supply in both the markets.

All the varieties of Pepsi are not available in the market.

Only 10% share of water in the market.

Visis are not pure.

No visibility of Pepsi in the market.

As there were so many problems in the market cokes share was 70%.



51/52

BIBILOGRAPHY

S.NO.

AUTHOR TITLE PUBLISHER

1 Philip Kotler Marketing Management Prentice

2 VS Ram Swami Marketing Mac Millan

3 Joel R. Evans Marketing Biztantra

4 Chunawalla S.A Advertising Hall of India



52/52

REFERENCES

www.pepsi.com

www.marketingteachers.com

Marketing Management by Kotler, Keller, Koshy, Jha.
http://www.marketingteachers.com/http://www.marketingteachers.com/

Final Pepsi Report Submitted

Documents

Transcript of Final Pepsi Report Submitted