Namrata Final Summer Report

PEPSICO INDIA HOLDING PVT. LTD.

1. Introduction :

1.1 Definition of project ?

The project is about knowing the working pattern of beverage company i.e. PepsiCo, to find out prospects so as to increase the clientele base and to know how different promotions and merchandising is important for the organization (PepsiCo).

The entire report is divided into two phase, i.e.

Market Prospecting/ mapping through A.C.Neilson data.

Promotions and merchandising through Full Fayeeda Scheme & Jakaad Ke Pakad Scheme.

1.2 Purpose of the Project?

The main purpose of the project was :

To find out potential market for PepsiCo through A.C. Neilson database.

To promote different schemes to the retailers and

To do merchandising to penetrate improvised product (new PET bottle of Pepsi) into the market.

As mentioned above the entire project is divided into two parts. :-

The first part dealt with finding out new potential markets i.e. prospecting for PepsiCo with the help of A.C.Neilson data. The reason behind this survey was to increase the clientele base which would increase the market share of PepsiCo through boosts in sales by these new accounts. The another reason behind these survey was upgrade the route planner i.e. to find out accounts (outlets) which were already served by the company sales representative but had no records in the route planner. To identify the areas where the distribution channel is challenged. To know the share of Visi, GRB and PET bottles in each outlet of PepsiCo as well as of Coca Cola.

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The second part dealt with different kind of promotions done by the company such as Full Fayeeda Scheme and Jakaad Ke Pakad Scheme to penetrate different products in the market. The other reason was to increase the visibility of the new Pepsi PET bottle and other products in the market through merchandising which would also push sales up. Another reason was to keep the Visi and Rack pure and arranged as per the Planogram because it is the heart of promoting products into highly competitive market.

1.3. Scope and Salient Contribution of the project?

The scope and salient features of both the projects are as follows:-

1) A.C. Neilson Survey:- Market Mapping (Prospecting)

After exploring new market, the company can increase its existing clientele base.

This will lead to increase in market share of PepsiCo, thus leading the expansion of the industry as a whole.

This will also portray the competitors reach and its share in the new explored market.

Route planner will get updated.

Complaints of the existing customers will be resolved, hence leading into customer satisfaction.

Distribution channel and providing services will be improved.

2) Promotions and Merchandising:- (Full Fayeeda Scheme & Jakaad K Pakad)

Increase in the visibility of the PepsiCo products.

Sales will boost as different brands will be pushed into the market as a part of merchandising.

Visi and rack will be kept pured always and will be arranged as per the planogram.

There will be high penetration of new Pepsi Pet bottle in the market, leading into hike of sales and high visibility of PepsiCo product into market.

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1.4. Outline of the project report?

The entire project is divided into two phase.

The flow of the first phase will be: what is A.C.Neilson all about, its importance with respect to PepsiCo, objectives of the project, the research done, the interpretation of the data found and finally recommendations.

The second phase will all about different schemes revealed by the company, its details, objective of these schemes, use of data, interpretation of data and finally recommendations.

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2. Company Overview:-

2.1 Introduction:-

PepsiCo was established in 1898 by Caleb Bradham in New Bern, North California. It was initially named as Brad’s Drink and was then changed to Pepsi-Cola which is now known as PepsiCo. The brand was trademarked on June 16. Today Pepsi has its presence in more than 200 countries.

From its humble beginnings over a century ago, Pepsi-Cola has grown to become one of the best-known, most-loved products throughout the world. And the company behind it—PepsiCo—has grown as well, standing today as the premier marketer of refreshment beverages, juices and snack foods. PepsiCo got its start in 1965, when Pepsi- Cola and Frito-Lay merged to create a new company. Since PepsiCo. Inc. has continued to grow, adding new brands and product lines. Tropicana Products Inc. joined the PepsiCo portfolio in 1998 and gave PepsiCo the strongest brand name in juice category. The company hit a grand slam with its merger with The Quaker Oats Company in 2001, bringing together two incredibly strong and successful food and beverage companies. The PepsiCo-Quaker union added the powerful Gatorade thirst quencher and its Quaker brand, a symbol of healthy eating that extends PepsiCo’s reach into breakfast, on-the-go foods, and snacks for kids.

Now the company offers more than 500 beverages and snacks, that appeals to every consumer age group and demographic category, spanning every time of the day. It is a well known and loved global brand that delights and nourishes consumers. PepsiCo ranks among top companies on Corporate Social Responsibility Index by the Boston College Center for Corporate Citizenship. It is consistently recognized for its corporate citizenship, philanthropic efforts and diversity programs.

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2.2 Indian Operations:-

Establishment :

PepsiCo established its business operations in India in 1989 and 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. It is now the 3rd largest consumer products company in India.

Investment:

PepsiCo India and its partners have invested more than USD1 billion since the company was established in the country. The company got its Break Even in 2007.

Employment :

PepsiCo India provides direct and indirect employment to 150,000 people including suppliers and distributors.

Plants :

PepsiCo has more than 42 bottling plants in India, of which 13 are company owned bottling plants. & 29 are franchisee owned. Three States have food plants i.e. in Punjab, Maharashtra and West Bengal.

Company Owned Bottling Operations (COBO):- PepsiCo has 30% company owned bottling plants, out of total bottling units in India.

Franchisee Owned Bottling Operations (FOBO):- FOBO contributes around 70% of bottling operations out of total bottling units. Here the entire system (i.e. franchisee) is handled by company owned manager, rest all things are handled by the franchiser.

Competitors :

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The main competitor of PepsiCo in India in carbonated based drinks is Coca Cola which also has wide range of products such as Thumbs Up, Coca Cola, Fanta, Limca, Minute Maid, Mazaa, Kinley Soda. For each category of product PepsiCo has Coca Cola has similar range of products. Eg:- Pepsi- Thumps Up & Coca Cola, Mirinda- Fanta, 7Up- Limca, Slice- Mazaa etc. Mountain Dew is the only product known as neon product in PepsiCo’s portfolio which does not have direct substitutes (neck to neck competition). Whereas in fruit based drinks Parle Agro is the strong competitor which has Frooti against Mangola and Slice.

In water segment PepsiCo has very fierce competition with Bisleri, Himalaya, Kinley and Oxyrich.

Pepsi Products Coca Cola Products

Pepsi Thumps Up, Coke

Diet Pepsi, Pepsi Max Diet Coke

Mirinda Fanta

7Up Limca, Sprite

Dukes Soda Kinley soda

Slice Mazaa

Nimbooz Minute Maid

Aquafina Kinley

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2.3 Mission and Vision Statement of PepsiCo:-

PepsiCo’s Mission

Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce 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.

Global 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.

National Vision:-

"To build India’s leading total beverage company, delighting consumers by best meeting their everyday beverage needs, and stakeholders, by delivering performance with purpose, through our talented people."

PepsiCo Sustainability 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.

“Tomorrow better than Today”

Performance with Purpose:-

At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society - delivering what we call Performance with Purpose.

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2.3.1 PEPSICO Core Values and Principles:-

Organizational Values: Our commitment is to deliver sustained growth, through empowered people, acting with responsibility and building trust.

PEPSICO Commitment:

“Our values reflect our aspirations - the kind of company we want PepsiCo to be. We express our values in the form of a commitment. “

Sustained Growth :

Sustained Growth is fundamental to motivating and measuring their success. Their quest for sustained growth stimulates innovation, places a value on results, and helps them understand whether today's actions will contribute to their future. It is about growth of people and company performance. It prioritizes making a difference and getting things done.

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Empowered People :

Empowered People means to have the freedom to act and think in ways that they feel will get the job done, while being consistent with the processes that ensure proper governance and being mindful of the rest of the company's needs.

Responsibility & Trust :

Responsibility and Trust form the foundation for healthy growth. It's about earning the confidence that other people place in them as individuals and as a company. Their responsibility means they take personal and corporate ownership for all they do, to be good stewards of the resources entrusted to them. They build trust between themselves and others by walking the talk and being committed to succeeding together.

2.3.2 GOALS:-

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Current Goal of the Company:-

The current goal of the PepsiCo India is to acquire 55% market share.

The company has set different targets to gain its desired market share.

The first step towards it was the launch of Slice in 2008.

The second step was to target grocers and bars, which was done through launch of new Pepsi (PET) bottle to cater grocers (Jakad ke Pakad Programme) and new Soda bottles to target all the bars (Club Soda Dhamaka).

Gradually steps will be taken to achieve the remaining targets i.e. increasing sales of GRB by increasing distribution and conquering cold market.

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2.4 Product Portfolio Of PepsiCo:-

Introduction:

PepsiCo is one of the world’s largest food and beverage companies, with revenues of nearly $60 billion. PepsiCo offers the world’s largest portfolio of billion-dollar food and beverage brands, including 19 different product lines that each generates more than $1 billion in annual retail sales. Our main business - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade – also make hundreds of other nourishing, tasty foods and drinks that bring joy to our consumers in more than 200 countries.

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Beverages Range :-

PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up. Local brands – Lehar Everest Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

Food (Snacks) Range :-

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 Chipps and traditional snacks under the Kurkure and Lehar brands and the recently launched ‘Aliva’ savoury crackers. 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.

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2.5 History and Advantages of different Beverages :-

1. Pepsi :-

Brand History

Pepsi is a hundred year old brand loved by over 200 million people worldwide. It is one of the largest selling soft drink brands in India.

Youngistan loves it. But what has made Pepsi the single largest selling soft drink brand in India is actually a formula concocted a century ago in a far away continent.

1886, United States of America. Caleb Bradman, the man with a plan, got on to formulate a blockbuster digestive drink and decided to call it Brad’s drink. It was this doctor’s potion that was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903.

Brand Advantage

Pepsi has become a friend to the youth and has led many youth cultures. Youngsters over the generations have grown up with Pepsi and share an emotional connect with it, unlike any other cola brand. Be it parties, hangouts, or just another day at home, a day is never complete without the fizz of Pepsi!

Pepsi, Cricket and Bollywood have been joined at the hip since the beginning. Shah Rukh Khan, Sachin Tendulkar, M. S. Dhoni, John Abraham, Ranbir Kapoor and Deepika Padukone, Katrina Kaif are a few celebrities who will go any length for a chilled Pepsi.

The Pepsi My Can is undoubtedly the most popular cola pack of all times. It is not just a pack but a style statement for today’s youth.

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2. Mirinda :-

Brand History

Mirinda is an international soft drink brand from Spain that was launched in India in 1991.

Now when we think Mirinda, we think orange. But this soft drink brand has many other fruit flavors. Mirinda has always been about a great orange taste, which is now synonymous with the brand. These were communicated through our great campaigns; the memorable Mirinda Men to Taste Aisa Chaye Character Fisla Jaye.

Brand Advantage

In 2008, the brand decided to up the ante on the brand from a being led by physical attribute-taste, to deliver a brand philosophy that resonates with the audience. Now, Miranda’s bold and vibrant colour, great orangey taste and sparkling bubbles encourages one to be more carefree, spontaneous and playful.

With an endeavor to give our consumers a great tasting product to delight them continuously, we have reformulated & improved its taste. Mirinda is now made without any artificial flavour in it!

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3. 7 UP :-

Brand History

7UP, the refreshing clear drink with natural lemon and lime flavour was created in 1929. 7UP was launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as a cool drink for youngsters. Fido became an instant hit with his trendy look, laid back attitude and refreshing take on life. During the brand’s early years in India, 7UP gained market leader status in the lemon lime category by being one of the first to be nationally distributed as well as being marketed as a healthier alternative to other soft drinks.

Brand Advantage

For the past 2 years, 7UP’s ambition as a brand has been to capture and own the lemon refreshment territory within the clear lime category. Lemon has proven to be a clear and relevant differentiator for the brand. Further, it has allowed the brand to ladder up to an emotional payoff of uplifting refreshment.

After establishing itself as “The Lemon Drink ", in Jan 2009, 7UP continued to build further on the theme of mood upliftment with its new tagline "Mood ko do Lemon ka Lift”

7UP’s brand communication is premised on the product’s natural lemon flavor, guaranteed to provide uplifting lemon refreshment that raises one’s spirit.

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4. Slice :-

Brand History

Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a leading player in the category.

In 2008, Slice was relaunched with a 'winning' product formulation which made the consumers fall in love with its taste. With refreshed pack graphics and clutter breaking advertising, Slice has driven strong appeal within the category.

Brand Advantage

With the launch of “Aamsutra” campaign in 2008 along with a winning taste & most appealing pack graphics, Slice created disruptive excitement in the category and celebrated mango indulgence like no other.

While other players have portrayed mango as a simple and innocent fruit, Slice celebrates the indulgence and sensuality of consuming a Mango. The creative idea “Aamsutra” communicates the art of experiencing pure mango pleasure through the taste of Slice.

As a first ever by any brand in the Juice and Juice Drinks Category, Bollywood’s reigning Diva, Katrina Kaif was signed on as the Brand Ambassador on Slice.

Slice took INDULGENCE to a new level in 2009 with the launch of the ‘Slice Pure Pleasure Holidays’, giving its consumers a chance to win luxuriant all-expense-paid holidays to their dream European destinations like Paris, Vienna, Greece and Venice.

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5. Nimbooz :-

Brand History

Nimbooz was launched in India this year on the 28th of February 2009. Latest addition to portfolio of Pepsi Beverages.

Brand Advantage

The brand delivers very strongly on certain expectations. These are

Locally Relevant Taste

Nimbooz is a great tasting product which has capitalized on the existing familiarity & behavior of high frequency consumption of unpackaged / Home made nimbu pani. It has been true to its Asli Indian Identity by owning and appropriating nimbu pani Codes such as the Matka (Earthen Pot) and Squeezer.

Convenience and Great Value

The product is available in 3 convenient formats, 350ml PET, 200ml RGB and 200ml Tetra at magic price points of Rs.15, Rs. 10 and Rs. 10 respectively.

Accessibility

Nimbooz is India’s first nationally available packaged Nimbu Pani.

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6. Tropicana :-

Brand History

Tropicana was founded in Bradenton, Florida, USA, in 1947. And is now enjoyed almost everywhere in the world. Carefully nurtured for over 50 years, it has matured into one of the most respected beverage brands. Today it is the World's no. 1 juice brand and is available in 63 countries. Since 1998, it has been owned by PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100% in year 2008

Brand Advantage

It continues to select the best in fruit to craft high-quality juices, create original products, pioneer innovative processes and explore new markets for its products. It is devoted towards a healthful lifestyle by ensuring that the products are naturally nutritious and provide the daily benefits that one needs.

Categories in India, Tropicana comes in 2 varieties: 100% Juices (sold as Tropicana 100%) and Juice beverages & nectars (sold as Tropicana).

7. Aquafina :-

PepsiCo also has mineral water in their portfolio known as Aquafina.

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2.6 Distribution Network of PepsiCo:-

Sales & Distribution Channel of PepsiCo:-

There are two ways in which PepsiCo does its sales and distribution i.e. direct route and indirect route:

Direct Route : - In direct route the delivery of goods is done to the outlets. The company’s delivery vans loads the goods directly from the company warehouse and distributes it to the customers.

Indirect Route : - In indirect routes goods are delivered from ware house to the distributor’s and whole seller’s point and then distributor sells it to its customer. It is generally known as Spokes market where PepsiCo appoints the distributors and the whole sellers to distribute its products, so as to make its reach everywhere.

Very few companies use both the form together. In India, only two multinational companies uses this two methods together i.e. PepsiCo and Coca Cola.

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3) Review of Literature/ Theoretical Background

3.1 SWOT Analysis:-

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3.2 Porter’s Five Force Model

Bargaining power of buyers:

The level of bargaining power differs among groups of buyers. The bottlers, retailers

and distributors have significantly greater bargaining power than the end consumer. Large

retailer such as Reliance, Big Bazaar, etc. are able to extract profits from the Company

through incentives such as volume-based purchases, promotions and displays. This is

particularly true for pet bottles. But, this can also be harmful for the retailers and they

losing customers if they refuse to stock a particular brand.

The bargaining power of the consumer is low. They are a fragmented group and no

one individual’s purchase accounts for a significant portion of manufacturer’s profit.

Although the presence of substitutes does serve to increase buyer power for consumers,

but a high degree of brand loyalty mitigates this loyalty. In short, we can say that the end

consumer has medium bargaining power.

Bargaining power of suppliers:

There are very few suppliers for the entire soft drink industry. The end product is

comprised of few ingredients, which are largely commodities. In addition, it is safe to

assume that Pepsi accounts for a large percentage of the suppliers total revenues. Thus, it

is important for the suppliers to contain whatever bargaining power they have. The

overall bargaining power of the suppliers is considered low.

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Threat of Substitutes:

There are many substitutes to sweetened carbonated beverages. Specially in India

there are several substitutes that pose a threat to PepsiCo. They are bottled water, juices,

energy drinks, tea, coffee, energy drinks and CSD from its main competitor Coca Cola

India. The challenge lies in increasing brand loyalty within these substitute markets,

because the substitute products are, for the most part, contained with each manufacturer’s

product portfolio. In India the local beverages like tea and nimbu paani pose a threat to

some extent to the established players. Therefore the threat of substitutes is very high

specially because of negligible switching costs.

Threat of new entrant:

Pepsi’s product differentiation caused by their marketing strategy has limited the

threat of new entrants. Also the heavy start up costs of manufacturing and packaging

plants would be a deterrent. But, the biggest deterrent is brand image and reputation; a

new company would be very hard pressed to take market share away from established

players like Pepsi, Coke etc. More importantly, the access to distribution channels is

currently one of the biggest barriers to entry, and this barrier remains because both Coke

and Pepsi maintain very strong relation with their channel partners.

Existing Rivalry among firms:

There is intense rivalry between Coke and Pepsi. This rivalry leads to a downward

pressure on prices and significant investment in advertising in an attempt to build and

maintain brand loyalty. In a maturing market such as domestic carbonated drinks, the only

way to gain market share is to steal from one’s rival. Thus, Coke and Pepsi fight heatedly

over prices, suppliers, spokespeople and retail space importantly, the taste buds of

consumers.

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4.1 Introduction

Before starting our main project we were sent on route riding. This is very first important step through which one can understand how beverage industry works. Here we were told to observe and analyze how PepsiCo works in its territory (i.e. Chembur). We observed following things in route riding:-

The procedure of loading and unloading of goods from ware house.

The working of distribution channel i.e. direct route and indirect route (spokes area).

Distributing number of outlets on different routes.

The working and roles of front line sales people i.e. PSR’s and QSM’s.

How sales calls are made and how FIFO is applied by the sales people.

How PepsiCo’s promotional schemes work in the market.

How visi and racks are cleaned.

How different promotional tools are used to increase the visibility of products.

After route riding, the next important parameter was the hierarchical structure of PepsiCo. The importance of different departments such as Marketing, Human Resource, Finance and their hierarchy was explained to us. Even the roles and responsibilities of different people at different hierarchical level were explained.

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Marketing Hierarchy:- (In India)

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Different Roles in PepsiCo:-

1. Role of Territory Development Manager (TDM) :- TDM is the manager who handles a particular territory decided by the top level management such as Unit Manager, Head of Sales. The role of TDM is as follows:

To handles the entire sales and distribution of its territory.

To forecast the demand and plan the volume accordingly.

Sets the objective and target for its down line management i.e. ADC and CE’s.

Understand the changing customer needs by maintaining a presence in the market and interacting with the customers.

To decide daily schemes and different incentives for its frontline.

Track the competitor’s activities and trends in its market.

To coach its sales team.

2. Role of Assistant Manager – Market Development (ADC) :- ADC is the person who assists TDM. He is appointed by both Unit Manager and Territory Development Manager. The roles Of ADC are as follows:-

To drive primary growth so as to increase the market share of its territory.

To analyze and drive growth opportunities in various channels through special programs.

To identify and select new spokes and distributors if required.

To review distributor’s investment and costs, and improve profitability.

Executing and tracking trade and consumer initiative, schemes such as Full Fayeeda etc.

To do effective execution of merchandising and stock availability.

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3. Role of MDM - Marketing Development Manager :

MDM is responsible for all the marketing activities and their effectiveness within a territory.

Decides the format and time frame of the marketing and promotional activities and the incentives given to the retailers.

4. Role of MDC - Marketing Development Coordinator :

Reports to MDM, and is in charge of carrying out all the marketing activities in the area.

Responsible for the execution and success of marketing and promotional activities.

Coordinates with the outside agencies for displays, boards, checks conducted in the market.

Responsible to keep a check on the expenditure of the marketing activities in the market.

5. Role of CE - Customer Executive :

Reports to TDM and ADC (in absence of TDM) and is in charge of the salespersons (PSR or QSM).

He is required to visit the market and accompany salesperson to build relation with the retailer and to check how his market is performing.

Responsible for assigning and achieving daily sales target given to the salespersons.

He is required to find out suspects and change them into prospects (i.e. to open new accounts).

He is required to fill TSB (Territory Score Board) and coach his front line too.

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6. Role of Summer Trainee :

Reports to TDM and ADC (only on absence of TDM)

Executes different programs such as Full Fayeeda Scheme & Jakaad Ke Pakad through PSR’s.

Explaining the retailers about the schemes and making them realize the relevance and importance of the programs reveled by the company.

Resolving basic issues of the retailers like requirement or problem of visi or rack, receipt of gifts etc with the help of TDM and ADC.

Giving regular updates to the TDM and ADC about the happenings of the project.

7. Role of PSR - Pre Sales Representative :

They report to the CE.

Fill TSB (Territory Score Board) regularly and even maintain route book properly.

They are the most important asset for the company as they are the ones who sell the products, are responsible for acquiring new customers, and retain the old ones.

Their work also includes informing the retailers about the promotions and any new scheme launched.

To clean the visi and rack and arrange it according to Plannogram.

There are steps that a PSR has to follow everyday when he is on route. They are known as “PepsiCo 8 step Sales Call”. It is explained below:

Preparation Greet the customer Store Check Merchandise Determine the order Presentation

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Curbside Debrief Administration

8. Role of QSM :

Reports CE.

Maintains route book regularly

Regularly interacts with the CE and Whole seller.

Visits 34-40 outlets per day depending upon the route.

Takes care of basic issues of the wholesalers and resolves their problems (if any) by consulting ADC

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Following are the main things which are used by PepsiCo Sales Department

1. Visi :

Visi are the coolers or refrigerators provided by the company to its retailers. It is considered as an artificial sales person and a most important merchandising tool. It is very important to keep these visi pure and clean (i.e. no product of another brand should be there in PCI visi). Therefore PepsiCo has Plannogram in place. Plannogram is a method of arranging PCI stocks in visi according to brands and its different SKU’s. It is the responsibility of PSR’s to clean the visi and arrange it according to Plannogram.

2. Rack/ Standees :

Rack is another important asset and merchandising tool of the company. These racks are generally visible in retail outlets such as grocery, convenience, eateries stores etc. Even these racks are arranged and cleaned by PSR.

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3. Delivery Vans :

These are company owned vehicles which are used for direct sales. That means these vans loads goods from the company ware house and sales them directly to the retailers. These vans have print ads on their shelter, which is considered one of the effective ways of promotion.

4. Shelf Display :

PepsiCo gives high importance to shelf display. It is considered as important way of visual merchandising. Every month company has FMO (Focus Month Objective) for different brands. Company keeps special schemes for this display.

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5. Signage & Bill boards: Signage’s are used on highways and road, where as bill boards are used as the name boards of outlets. Even electronic and Digital signages are used by PepsiCo.

6. These kinds of stalls are used in cinema halls, malls etc.

7. GRB (Glass Returnable Bottels) :

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Soft drinks which comes into glass bottles are known are GRB.

The customer has to return empty glass bottles while purchasing filled once, therefore it is known as Glass Returnable Bottles.

Each case contains 24 bottles.

The customer has to keep deposit of Rs.240 (120Rs. for glass bottles without liquid and 120Rs. for the cases in which these bottles are kept) for each cases purchased.

No of filled cases purchased is equal to number of empty cases given.

8. PET Share :-

Soft drinks that comes into advanced quality plastic bottles are known as PET bottles.

No deposit is kept against PET bottles. Number of bottles in cases differs according to different SKU’s (Stock Keeping Units)

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Phase 1

A.C.Neilson Survey

Introduction of A.C. Neilson:-

The Nielsen Company (erstwhile ACNielsen) was established in the United States in 1923 by Arthur C. Nielsen, Sr., one of the founders of the modern marketing research industry.

They provide companies with many opportunities and techniques to examine trends and understand the impact of the market forces that influence consumers’ purchasing decisions.

They also provide their customers, critical information on the use of promotional activities at the retail level, such as special displays or pricing, and on distribution and stock conditions in retail stores.

Their analytical and modeling services provide companies with a range of options to evaluate and understand why marketing campaigns succeed or fail, and to address specific future marketing opportunities and issues, such as promotion optimization, pricing, consumer targeting and marketing mix optimization.

Nielsen offers integrated suites of market information gathered from a wide range of sources, advanced information management tools, sophisticated analytical systems and methodologies and find the best paths to growth.

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Importance of A.C.Neilson with respect to PepsiCo:-

Importance of A C Nielsen with respect to PepsiCo:

Measure the market performance :Sales to consumers of fast-moving consumer packaged goods, gathered at the point of

sale in retail stores of all types and sizes. A.C.N provides with all essential facts on how PepsiCo products are performing in the market as compared to its competitors, and also provides trends and changes in market conditions and sales results. It also provides critical information on the use of promotional activities by PepsiCo at the retail level, such as special displays or pricing, and on distribution and stock conditions in retail stores.

Diagnose and solves marketing and sales problems : A.C.N really helps PepsiCo to diagnose and solve various issues related to marketing

and sales as it has various tools to generate database, that PepsiCo might require importantly.

Identify and capture growth opportunities : Nielson’s researched data helps PepsiCo to identify, analyze, capture and activate

those outlets which are not documented before. This increases the chances of growth in all terms.

Knowing the effectiveness of Advertising & Promotion :PepsiCo spends huge amount in advertising and promotion. So it becomes important

for the company to know its effectiveness and attractiveness. Hence AC Nielsen serves this purpose.

Indicates the market share with respect to its competitor’s :

After doing research of companies A.C.N indicates the market share of the individual company and its competitors. So PepsiCo can get its indicated market share from A.C.N.

Exploring Distribution gaps and opportunities : A.C.N helps PepsiCo to reduce distribution gap and find opportunities to enhance its

network and expand it.

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http://in.nielsen.com/company/what.shtml%20%5C%20measure

http://in.nielsen.com/company/what.shtml%20%5C%20identify

http://in.nielsen.com/company/what.shtml%20%5C%20diagnose


Objectives regarding A.C.Neilson Survey:-

To analyze the potential market for PepsiCo.

To know the details of outlets in ACN data whether they exist in the market or not.

To identify the existing markets, closed outlets, CCX monopoly outlets and outlets whose names are changed from the AC Nielson list.

If these outlets exist then to analyze whether PepsiCo is servicing or not. If not then get it activated through PSR. If serving than upgrading the route planner.

To improve the distribution network.

To stretch the soft drink industry. (For PepsiCo)

To tap uncattered market.

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5. Research Methodology

5.5.1. Type of Research:

The type of research is Exploratory Research. Only the names of the outlets with the landmarks were given and we were required to locate these outlets individually. Hence, a lot of things were analyzed and found which could b possible only because of exploratory research.

Also, exploratory research saves a lot of time and work is done at minimum cost.

5.5.2 Data Collection Tool:

1) Primary Source :

We used primary tools such as rout planner, distributors, QSM’s, PSR’s to locate the outlets.

Route planner: It is a book were entire details of the outlets is given. We used this book to separate unidentified outlets from the existing once.

Distributors: PepsiCo operates its indirect operations through distributors. Therefore we went to distributors to find out proper location of the outlets.

QSM’S and PSR’s:- QSM’s are Quality Sales Manager who works in indirect channel. And PSR’s are Pre Sales Representatives who work for direct route. We were accompanied by them while finding the A.C.N outlets.

2) Secondary Source :

No Secondary Source

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5.5.3. Sampling plan:

5.5.3.1.Sampling Unit: Who is to be surveyed?

Geographical sampling unit - Urban Retailer outlets

5.5.3.2. Sample Size: How many outlets to be surveyed?

A data base of 1800 outlets was given which was outsourced from A.C. Neilson. These 1800 outlets stretched from Matunga to Mulund, which were further segregated as follows:

Chembur 700 outletsGhatkopar & Vidyavihar 250 outlets

Kurla 150 outletsVikroli 100 outletsMulund 300 outletsBhandup 200 outlets

5.5.3.3. Procedure:

We, summer trainees were divided in the team of 3. We had to visit all the above outlets according to the segregated areas.

A check list was prepared to find the details of the A.C.N outlets. Following parameters were included for making check list. They are as follows:

Name of the oulet.

Complete address of the outlets.

Visi (cooler) whether they have PCI visi or CCX visi or the owners own visi.

Number of cases of PCI or CCX with respect to GRB(Glass Returnable Bottles) only.

Number of cases of PCI or CCX with respect to PET only.

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Name of the person giving PCI or CCX service in that area.

Contact details of the outlets.

Comments given by the owner of these outlets.

CHECK LIST for market mapping :

From above;

Pci = PepsiCoCcx = Coca ColaVisi = Cooler/Fridge which is double/single doorPet = Plastic BottlesGlass = Glass BottlesService Provider = PSR or QSM who caters these outlets.

On the basis of this Check List we were suppose to visit the outlets area wise and jot down the details and comments.

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5.5.3.4. Assumptions:

The analysis is done on the sample of 1800 A.C.N outlets only.

Therefore the findings are based on the sample only.

We were provided all lower end outlets i.e. spokes area which were basically Convenience, Grocery and Eatery and Drinking.

Physical count of cases is done.

The survey is made on the current day stock basis which is subject to change depending on the season as PepsiCo is a seasonal based company.

The market share may fluctuate as it operates in a dynamic market. (A seasonal based industry)

Data is derived from the found outlets only.

Exclusive outlets are not taken into consideration.

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6. Data Interpretation, Findings and Analysis :

6.1 Regional Bar Diagram :-

** (Regional Bar Diagram for all the areas in the Chembur Territory)

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Data Analysis , Results and Interpretation :

6.1 Regional Bar Diagram:-

1. Ghatkopar:

Data Interpretation:-

The GRB Share in Ghatkopar for both PCI & CCX is at par.

The PET Share of PCI is 4% Lower than that of CCX. This means that the intake of PET bottles of Coke by the retailers is more than Pepsi in Ghatkopar region.

Due to this, overall share (GRB & PET) of PepsiCo has dipped by 2% i.e.at 49%.

Finding & Analysis:

The reason for this dip was because in the low-lying areas like Indira nagar and Laxmi nagar, the service was inefficient and not well maintained by the appointed distributor. So, the aggregate GRB+PET share of PepsiCo is a little less than that of Coke.

In the areas like Sakinaka, Bhatwadi, Asalfa (NSS Road), the visibility, preference and acceptability of PepsiCo is much higher than that of Coke.

The distribution in the areas of Ramabai Colony & Kamraj nagar are quite better in terms of service provided by the wholesaler and distributor.

It was also noticed that in the areas like Odeon, M.G.Road, Vallabh Baug lane and Vikrant circle the presence of coke was more than PepsiCo.

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2. Vidyavihar:


In Vidyavihar, Coke is dominating by 55% in GRB share. Whereas, PepsiCo is lower in GRB share almost by 10% which is a crucial figure.

In case of PET also, PepsiCo’s share is extremely less by whopping 26%. The share of Coke is comparatively very high at 63%.

The aggregate of both the bottles is dominated by Coke’s share, wherein PepsiCo’s share is less than Coke by 16%.

Finding & Analysis:-

At vidyavihar (West), in the areas like Kirol Village the service of PepsiCo is extremely poor, which has reduced the share in GRB and PET to a great extend.

Also the Visi provided to the retailers were not well maintained by them. It was extremely impure and not arranged as per the planogram.

Hence, for these reasons, PepsiCo share in Vidyavihar has been reduced drastically.

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3. Kurla:


PepsiCo’s share in Kurla in GRB is higher than that of Coke by 11%.

While it is inverse in case of PET. The PET share of PepsiCo is lower than Coke by 12%. Coke’s share is much higher at 56% than that of PepsiCo which is at 44%.

Overall, it can be seen that, the share of GRB+PET of both the companies is almost same, wherein, PepsiCo is leading the share by mere 2%.

Findings and analysis:-

In the area of Quereshi nagar,the service is not provided properly. As this region is located on hill side, the distribution is little difficult.

In the areas like Kalina, Kajupada and New hill road, the share of PepsiCo was better than Coke. Also,it was noticed that many Hotel outlets had Pepsi monopoly.

Same is the case with area near Kurla Station (including station canteens), where GRB share was much higher than PET. The major reason being high consumption of these soft drinks by the commuters due to summer season.

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4. Chembur:

Data Interpretation:

Chembur is a major market of PepsiCo, where the share of PET and GRB is much better than Coke share.

PepsiCo is leading in GRB share by 57%, whereas that of Coke is 43%.

Again, PepsiCo is leading in PET share by 55%. Coke’s share in PET is only 45%.

Findings and analysis:

As PepsiCo has its warehouse in Chembur itself, the distribution here is excellent.

There are many PepsiCo monopoly outlets in Chembur.

The service provided to the retail outlets is also extremely efficient and effective.

The merchandising of PepsiCo products is also up to the mark and well adopted by the retailers.

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5. Vikroli:


In Vikroli, PepsiCo’s share in both GRB& PET is less by 14% & 24% respectively.

Due to this there is an overall affect of 18% in total market share of the PepsiCo in this region.


The major reason of this dip is due to lack of service as it is highly hilly area.

Even the Coke monopoly outlets are higher as compared to PepsiCo monopoly outlets.

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7. Kanjur Marg :


The GRB share of PepsiCo is higher than that of Coke by 12%.

Whereas on the other hand Coke’s PET share is higher than that of PepsiCo by 8%

However the overall share of PepsiCo is more than Coke by 5%


Under Chembur territory, PepsiCo has got another warehouse in Kanjur Marg also. Hence this provides a good access in and around Kanjur .

There is also an add on benefit that it provides good reach of PCI products in the vicinity areas of Kanjur Marg like Mulund & Bhandup.

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7. Bhandup:


The GRB share of Pci is 58%, whereas that of coke is 42%.

The PET share of PepsiCo is also greater than that of Coke at 55%.

The overall share is lead by PepsiCo by 14%.


A lot of outlets in Bhandup has Pepsi Monopoly compared to Coke.

It was found that the service is regularly provided by the salesperson every 2 days.

The service provided is relatively better than that of coke.

The retailers also keep visi pure.

Other merchandising activities are also done effectively.

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8. Mulund:


In Mulund, the share of coke’s GRB is quite high as compared to PepsiCo’s GRB share by 16%.

Same is the case with PET, where PepsiCo’s share is 47% and Coke is 53%.

Overall, Coke is leading by 14% as PepsiCo’s share in both GRB and PET is lower.


In many areas of Mulund, the service was not provided up to the mark.

It was also noticed that the Visi purity was poor.

However, PepsiCo is trying its level best to tap the areas majorly covered by Coke and also establish its monopoly there.

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6.2 Area Wise Bar Diagram (GRB, PET & TOTAL):-

Calculations:-

Total GRB Share:-

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Data Interpretation & Findings:

If we combine all the areas together, we notice that GRB share is good in the regions of Ghatkopar, Kurla, Chembur, Bhandup and Kanjurmarg. In all these regions, Coke’s share is lower than that of PepsiCo, that means Pepsi relatively has good amount of share in GRB category as compare to its competitors.

This is due to quality service rendered by PepsiCo in the above mentioned regions.

The level of presence of PCI product is good in areas like Kurla, Chembur, Bhandup and Kanjur.

Wherein areas like Vidyavihar, Mulund and Vikroli is challenged by the competitor.

This shows that in some parts Pepsi renders proper service than Coca-Cola.

Also, the merchandising activities are well carried out by retailers of these regions which indirectly help to boost the sales in the market.

Hence, these areas are the potential market for PepsiCo where it can enhance its network and increase its turnover widely.

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6.3 Total PET Share:

Calculation:

Total Pet Share:


PET share of PepsiCo is high only in the regions of Chembur and Bhandup. While Coke is doing very good in case of PET in other regions like Ghatkopar, Kurla, Mulund, Vikroli and Kanjurmarg.

It is observed that the share of PET is very low in Vidyavihar (only 37%) and Vikroli (only 38%).

Probably the reason for this could be the schemes and discounts offered by coke are more effective than that of PepsiCo.

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6.4 Total share (GRB + PET) for individual regions:-

Calculations:

Total Share (GRB + PET Share):-


PepsiCo’s total share (GRB + PET) is high only in 4 regions i.e. Kurla, Chembur, Bhandup and Kanjurmarg.

Remaining all the areas is dominated by Coke.

Areas like Vidyavihar, Vikroli and Mulund shows dip of almost 7 to 8% which can reduce the overall growth of the company.

These are the areas where service is not provided properly, this can be one of the major reason for this dip.

6.5 Monopoly Market:-

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Monopoly market is market where the outlets keep only PepsiCo or Coca Cola products. It is known as Pepsi or Coke exclusive account or outlet or store. Now the diagrams give below represents the monopolistic market share of both the PepsiCo and Coca Cola in terms of crates purchased by the retailer: -

Calculations:-

Regional Monopolistic Market share (In terms of Crates):-

Data Interpretation & Findings:-

The monopoly market is highly dominated by Coke’s product. This shows that Coke has strongly penetrated its product in its monopoly outlets.

There is not a single monopoly outlet in Vidyavihar region. This might be a region due to which the aggregate share of Pepsi in the monopolistic market must have been affected.

Only two areas i.e. Chembur and Bhandup has more number of monopoly outlets than Coke.

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6.6 Monopolistic market share of Chembur Territory (In terms of Crates):-

Data Interpretation & Findings: (of the above two charts)

The above 1.diagram i.e. region specific, clearly shows that there are more number of CCX monopoly outlets as compared to PCI monopoly outlets.

Except Chembur and Bhandup all regions are dominated by CCX monopoly outlets.

But according to the 2nd diagram i.e. territory as a whole, the market share of both the companies is same. This means that though PepsiCo has less number of outlets, the turnover generated from them is equal to the turnover generated by Coke from its more number of monopoly outlets.

PepsiCo does not have single monopoly outlets in area like Vidyavihar.

6.7 Monopoly outlets (PCI & CCX) and MIX Accounts (In terms of Outlets):-

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The above diagram shows the number of monopoly and mix outlets both the companies has out of 1600 outlets.

From the sample size i.e.1600 outlets PepsiCo has 336 monopoly outlets which is 5% more than the monopoly outlets of Coca Cola.

Whereas both the company share a huge figure in terms of mixed accounts.

This shows that out of 1600 outlets almost 992 outlets are mixed accounts.

This clears the fact that PepsiCo has a great potential market in this 62%. It can push its sales to make some of these mix accounts into monopoly accounts.

Pepsi can also increase its presence and market share by entering into Coke’s 17% market share.

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6.5 Visi Share of both the companies:-

Visi are the coolers provided by the companies to keep its product cool. It is also known as Artificial Sales Person. It is the most important tool and asset for the company.

Given below are the visi share of both PCI and CCX companies. That means how many outlets (out of 1800) has PCI visi, CCX visi and Owners own visi.

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Data Interpretation & Findings:-

Only 468 (26%) number of the outlets have Pepsi visi, wherein Coca-Cola has its visi in 558 outlets (31%) and the remaining outlets have their own visi’s.

This shows a positive sign for Pepsi as with few amount of investments the company is getting equal returns as compared to high investments done by CCX.

For PCI regions like Kurla and Vidyavihar is highly challenged market because these areas has more number of PCI visi outlets with less turnover as compared to fewer CCX visi outlet with high turnover.

This shows that many number of outlets don’t have PCI and CCX visi. Now this can be a potential market where PCI can increase its turnover and increase presence.

Limitations of the project:

The limitations of the project are as follows:-

The outlets surveyed were taken from the A.C.Neilson data only. So the findings (i.e. share) are restricted for those particular outlets in their respective areas only.

Therefore it is not the complete survey (existing+ new accounts) of that respective regions.

Physical count of cases is done.

The survey is made on the current day stock basis which is subject to change depending on the season as PepsiCo is a seasonal based company.

The market share may fluctuate as it operates in a dynamic market. (A seasonal based industry)

Data is derived from the found outlets only.

Exclusive outlets are not taken into consideration.

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Recommendations:-

Regular services should be provided in the areas like Indira Nagar, Laxmi Nagar, Qureshi nagar, etc by appointing trained spokes. These are the areas where demand is there but the supply (distribution) is irregular.

Retailers in Indira nagar, Park site etc buy products from the nearby mall’s i.e. R-City or R-Mall due to irregular service provided by the spokes people. Therefore a proper

Vidyavihar and Vikroli are the highly challenged and potential markets, both in terms of total share and visi purity share. So great attention is required in these areas. Visi should be pulled out from the outlets that does not keep Pepsi products and at the same time keeps other products in Pepsi visi cooler (impure visi).

Different schemes should be revealed to push PET products, so as to increase the sales in areas like Ghatkopar, Vidyavihar, Kurla, Vikroli, Kanjur Marg and Mulund were PET share is highly dominated by Coke.

PepsiCo has a large opportunity to increase its turnover by creating Pepsi monopoly accounts in the area like Vidyavihar were there is 100% Coke Cola’s domination.

Problems of the retailers regarding break down of visi coolers, racks etc should be solved as early as possible.

Visual merchandising plays a very important role in increasing the presence of products. Hence rack, visi cooler, standees should be provided to that retailer that regularly gives secondary sales.

A very high opportunity lies for PepsiCo to increase its market share by almost 17%, by creating PCI mix or monopoly accounts in Coca Cola’s market share.

Again a huge opportunity to expand lies in mix market share, where Pepsi can create new monopoly outlets.

Phase 2

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2.1 Merchandising and Promotional Marketing

(Full Fayeeda Scheme & Jakaad Ke Pakad Scheme)

1. Introduction :

Full Fayeeda Scheme:-

Full Fayeeda Program is a special (merchandising) scheme offered by the company for its clients/retailers specifically Grocers having mixed A/C i.e. the outlets having both PepsiCo as well Coke products. The retailers are short listed on the sales they give i.e. 600crats in half year. It is an 8 month programme which started from March 2010 to October 2010. Only top 120 outlets were selected from the following areas:-

o Matunga

o Sion

o Kurla

o Chembur

o Ghatkopar

o Vikroli

o Kanjurmarg

o Bhandup

o Mulund

The programme was supposed to start in March, but due to improper execution by the front line people the retailers were unaware of the programme. Even the enrolled retailers were not following the norms of the programme properly. Therefore company restarted these programme in June, where we were given the list of these selected outlets and we were suppose to convince the retailer for this particular programme and execute the further work through PSR’s.

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Every month all the enrolled outlets are audited by the external party which than forwards the results to Pepsi. The retailers get prizes or gift vouchers according to the audited results.

2. OBJECTIVE:

The main objectives of implementing this program by PepsiCo are mentioned below:

To increase the visibility through different merchandising tools such as Air Hanger, Rack, Cooler top Display, Counter display, etc. And even to break the clutter.

To push more PepsiCo products in the market.

To increase the market share.

.To retain the customers by providing them various schemes and incentives which in turn motivate them to enhance the visibility of PepsiCo.

Air Hangers Counter Display

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Shelf Display according to FMO:

To promote different brands every month by FMO (Focus Month Objective) Shelf display, in which company decides display of different brands each month.

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Visi not arranged as per Planogram and is Impure

Visi properly arranged as per Planogram and is pure and

fully charged.


To keep the PepsiCo Cooler i.e. Visi absolutely clean, pure and charged with PepsiCo products.

pure

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PROGRAM DETAILS:

In this program there are 3 criteria’s which is to be fulfilled by the Grocers and on that basis they would earn points. The criteria’s for the same are as follows:

A) COOLER SCORE :

Definition of Charging:

PepsiCo Cooler, at ant point of time, should be at least 75% full with PepsiCo products. That means the remaining 25% can either have PepsiCo Products or should be empty. There should not be any other product.

Definition of Purity:

PepsiCo cooler should be 100% pure. This means hat there should be only and only PepsiCo range of products in the cooler. Any other items like other beverage brands, milk, butter, curd, chocolates, etc. should not be there.

Definition of POG SKU Score:

No. of SKU ( Stock Keeping Units ) present in the cooler according to the planogram for that particular cooler size/unit.

Upon having achieved all of the above mentioned conditions, the grocer would win 20 points.

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B) RACK CHARGING:

Definition of Rack charging:

PepsiCo Rack at any point of time should be at least 80% full with PepsiCo products. That means the remaining 20% can either have PepsiCo products or should be empty. There should not be any other product.

C) VOLUME:

The average volume target will be communicated to the retailer by the CE. He will also break this up into achievable monthly targets.

D) DISPLAY BONUS:

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Full Fayeeda Programme:

Sr. No Content

1. Cooler Score 20

2. Rack Charging 15

3. Display Bonus 15

Maximum Points (Monthly) 50

Maximum Points (Total Doration) 400

1.4 REWARDS from the Program:

The retailers would be awarded with PepsiCo Gift Vouchers upon the fulfillment of Merchandising & Volume Criteria on a monthly basis.

The Voucher/gift value is a s given in the table below:

Outlet Size(Program Target Profile) VPO > 600 CS

Rewards - Merchandising Criteria

Full Score – Rs.400 PepsiCo Gift Voucher per month

Volume Criteria Rs.50 Gift voucher/10 cases

**Gift Voucher on volume is applicable only on full score.

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1.5 Methodology:-

We were given 120 mix high end account outlets with entire details.

These outlets were again divided into three people.

We visited these outlets with respective PSR’s and explained the retailer’s entire scheme again.

We reenrolled the interested retailers.

In these reenrolled outlets we made our respective PSR’s to clean the visi and arrange them according to Plannogram.

They also arranged the racks and kept bottles for display as per the requirements of the scheme.

We even made PSR’s to do shelf display or visi top display according to the FMO of that month.

Visi and racks were provided to those retailers who didn’t had either or both of them and were interested in the scheme.

Problems of the retailers regarding visi or rack are solved.

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1.6Findings, Analysis and Interpretation:-

1.6.1 Matunga & Sion:-

Data Analysis and Interpretation:-

33 top end outlets were selected and segregated from Matunga and Sion region.

Out of which only 16 retailers i.e. 48% agreed to get enroll for the scheme, to follow the norms of the programme throughout its tenure.

And remaining 52% denied to enroll.

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1.6.2 Chembur:-

Calculation:


In this area 68% retailers agreed to enroll for the scheme.

Racks and air hangers were provided to some of them who did not have while enrolling.

13% retailers denied enrolling due to inability to full fill the criteria’s set for the scheme.

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1.6.3 Ghatkopar & Kurla :-

Calculation:


Almost 50% of the retailers enrolled for the scheme, wherein others retailers denied.

Some of them were in ineligible for the scheme as they didn’t had visi.

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1.6.4 Mulund:-

Calculation:


42% in this area were not interested in the scheme.

This was because of the peak season where it was not possible for the retailer to keep the visi pure (according to the norm of the scheme).

On the other hand 58% enrolled themselves for the scheme and agreed to follow the norms.

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1.6.4 Total Area :-

Calculation:


Out of 125 outlets 57% of the outlets were qualified and even agreed for reenrollment.

Wherein this 43% included non-qualified and not interested outlets.

Around 70%-80% of the outlets didn’t had racks. Some of the enrolled retailers without rack were provided within 2-3 days.

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Recommendations:-

Being high end outlets Pepsi should provide racks and air hangers to non enrolled retailers at least as a merchandising tool to push the sales and increase the visibility of the stock.

Visi audit should be done on time and the results should be informed to the retailers accordingly through the respective PRS.

As PSR’s have multiple responsibilities, another set of people should be hire for cleaning and arranging visi and racks.

Problems of the retailers regarding visi and rack should be solved on time.

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2.2 Jakaad Ke Pakad Scheme

This scheme was introduced on 1st July. The duration for this scheme was 1 month. It was the Mega-Display of the new Pepsi (PET) grip bottle. Selected outlets having shelf space were targeted for this scheme. Audit was conducted for this merchandising on the basis of the following rules:-

Rules :-

(For Mega display only):-

Purchase a minimum of 5 cases of Pepsi 600ml grip pack at the time of enrollment.

Display at least 100 new Pepsi PET bottle in the shelf or in air hangers throughout the month.

An audit by an external party would be conducted once or twice a month of this mega display.

During this audit minimum 100 bottles should be there in display so as to get qualify for the scheme.

The eligible retailer would get Rs.10 on each bottle displayed, which sums up to Rs.1000 for keeping this display.

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Other Criteria’s for this scheme (excluding Mega-Display):-

Enrollment Criteria

Purchase minimum 2 cases of Pepsi 600ml grip pack

Get 6 bottles of Pepsi grip pack free.

Display Criteria

Display a minimum of 24 bottles (during entire month)

(12 bottles on counter & 12 on visi top).

Post Enrollment

Purchase 4 cases of Pepsi grip pack

Get 1 case of Dukes soda (600ml) free.

Purchase 10cases of Pepsi grip pack

Get 3 cases of Dukes soda free.

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Objectives:-

The main objective of the organization was to launch product in the market.

To do MEGA-DISPLAY so as to create the awareness of new Pepsi grip pack.

To push the new product in the market with an increase in visibility and merchandising.

To increase the turnover through new product.

Data Analysis:-

Some retailers agreed to keep mega-display in their outlets.

Whereas some denied to buy heavy stocks or no shelf space to display the stock.

Some didn’t want to invest large amount of stock.

Recommendations:-

To do display audit properly.

To provide some retailers with air change.

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Annexure

Full Fayeda Broacher:

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SLICE IN MUMBAI

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JAKAD KE PAKAD OFFER (PEPSI 600ml NEW GRIP PACK)

(1st- 31st July10’)

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DUKES club soda DHAMAKA (1st July-31st August)

DUKES club soda DHAMAKA (1st July-31st August)

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Offer on Planogram

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LIST OF TABLES

LIST OF FIGURES

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Bibliography

www.pepsico.com

PepsiCo Newsletter.

Magazine: Point of Purchase.

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Namrata Final Summer Report

Documents

Transcript of Namrata Final Summer Report