Pepsi Project

MARKET RESEARCH, SALES PROMOTION, ADVERTISEMENT &

COMPETITOR ACTIVITY IN PATNA

WITH REFRENCE TO

SUBMITTED TO

MANAGEMENT PROGRAMMEUNIVERSITY 0F MYSORE

FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SESSION: 2007-2009

UNDER THE GUIDENCE OF: SUBMITTED BY:

Mr. ARUN KUMAR AMIT KUMAR

TDM (Patna) ROLL.NO. - 29 (MARKETING)

LUMBINI BEVERAGES PVT. LTD.

[LUMBINI BEVERAGE PVT. LTD]

LUMBINI BEVERAGES PVT.LTD

DATE: 30-06-2008

To Whom It May Concern

This is to certify that Mr. Amit Kumar Student of MBA, of K.R. Manglam Global Institute of Management, Delhi session 2007-2009 has completed his summer training during 04-05-08 to 04-06-08 on the topic of “Market research, Advertisement, Competitor activity and Sales & distribution system” under LUMBINI BEVERAGES PVT.LTD. (PEPSICO), Hajipur at Patna. He successfully undertook the above dissertation with total sincerity and dedication to our satisfaction. His conduct during the training period was good.

We wish him all the best & hope that this training might help in his professional career.

For LUMBINI BEVERAGES Pvt. Ltd

(Arun Kr. Singh)

Trading Development Manager

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[LUMBINI BEVERAGE PVT. LTD] Regd. Office: P-214, C.I.T. Scheme VI(M), Kolkata – 700 054, Tel.: (033) 2229 5762, Fax: (003) 2229 5762, Email: [email protected],Plant: H-2, EPIP, Industrial Area, Hajipur – 844101, Tel.: (06224) 274873,274836, Fax: (06224) 275927, Email: [email protected]

PREFACE

The present era is an era of Brand Marketing the business of brand marketing can be compared to the game of chassis this area of marketing brand name, packaging, and distribution and advertising plays similar role as that of pawn on the board of chess.

To achieve the purpose I have done my summer project training from Lumbini Beverages pvt. Ltd.Hajipur, unit the topic given me is “A BRIEF STUDY ON SALES & DISTRIBUTION SYSTEM, MARKET RESEARCH, CONSUMER BEHVIOUR, and COMPITITOR ACTIVITY OF PEPSI IN PATNA (BIHAR).

Knowledge attains maturity and perfection through application in practical field. Application of management principle in all branches whether product. Personal marketing, etc. result is more efficient and efficient and effective utilization of available resources.

This report has been compiled firstly in partial fulfillment of the requirement for MBA, secondary to share the practical knowledge and experience gained as result of continued association with company’s marketing branch. The details mentioned in this report are based on real situation.

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mailto:[email protected]

[LUMBINI BEVERAGE PVT. LTD] Since the reader would like to know the general details of two cola giants. Therefore a chapter includes theoretical aspects of comparative study and its application for the industry in marketing is also include. Further to help the reader in understanding the findings, graphical representation, conclusions and suggestions are also includes, which very much helps Lumbini Beverages Pvt. Ltd. Hajipur to know where he stands in the soft drinks market. What is the market share of Pepsi? And what Pepsi is doing against Coca-cola.

I frequently hope that this project report would be considerable help to the management for developing strategies in those areas.

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ACKNOWLEDGEMENT

This project report is a sincere attempt to carefully and systematically gather facts about and evaluate the sales promotion, distribution and market research of LUMBINI BEVERAGES PVT. LTD. HAJIPUR as a part of the course curriculum of “SALES & DISTRIBUTION SYSTEM,MARKET RESEARCH ,CONSUMER BEHVIOUR ,COMPITITOR ACTIVITY OF PEPSI IN PATNA(BIHAR)”.which is of eight weeks duration for the completion of my project report many persons directly or indirectly assisted me.

First of all, I would like to thank almighty God, without his blessing the whole report could not have been completed.

In this context I, Amit Kumar student of K.R.Manglam Global Institute of Management, University of Mysore, Bangalore .Would first of all like to express my thankfulness to parents and family members, who have constantly deported and encouraged me in shaping my career.

I also express my profound sense of gratitude to Mr. G.P Singh [CEO], Arun Kr. Singh [TDM], Binay Kumar [Deputy TDM], & CE Banwari Shukla, Patna of Lumbini Beverages pvt. Ltd., Hajipur, who provided me an opportunity to work and also guide me at every step of my

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[LUMBINI BEVERAGE PVT. LTD] project. Their proper direction and constant inspiration proved to be an asset for this project.

I am also grateful to Mr. N.K. Prasad [HR manager] Lumbini beverage pvt. Ltd, For giving me an opportunity to learn and conduct research in their esteemed organization, Words are too little to express my gratitude.

I would like to thank Mr. Vikash Kumar, Mr. Nitin Kumar, Mr. Amar Sinha & Depot, In charge Mr.j.L.Rajpal for their kind co-operation to compile my project.

Since the reader would like to know the general details of two cola giants, therefore, chapter includes as discussion of theoretical aspects and its application is included. Further to help the reader to understand the finding with graphical representation. Conclusions and suggestion are also included, which very much helps to know that where LUMBINI BEVERAGES Pvt. ltd., stands in the soft drink market what is market share of Pepsi and how Pepsi is doing against coca-cola.

I hope this report will be special interest to the marketing students, who are on look such real life situations beyond their classroom studies.

Amit Kumar

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CONTENTS

Chapter 1: Introduction to the Study

1.0 Introduction

1.1 Purpose of the Study

1.2 Importance and Relevance of the Study

1.3 Research objective

1.4 Scope of Study

1.5 Characteristics of soft drinks

1.6 Methodology to be used

1.7 Limitations of Study

Chapter 2: Industry Profile

2.0 Overview

2.1 Mission and vision of PepsiCo

2.2 History of Pepsi

2.3 Pepsi the Indian experience

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[LUMBINI BEVERAGE PVT. LTD] Chapter 3: Introduction of the organization

3.0 Lumbini beverage Pvt. Ltd.

3.1 Profile of LBPL

3.2 Organizational hierarchy

3.3 Production process

3.4 Product profile

3.5 SWOT analysis

Chapter 4: Marketing Strategy & Distribution Channel

4.0 Marketing strategy

4.1 Marketing mix

4.2 Promotional activities

4.3 Advertising & sales promotion L.B.P.L

4.4 Merchandising policy

4.5 Distribution channel of LBPL

Chapter 5: Product Performance of Pepsi

5.0 Targeting product comparison

5.1 Product availability

5.2 Pricing of product

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[LUMBINI BEVERAGE PVT. LTD] 5.3 Pepsi performance in comparison

Chapter 6: Data Analysis and Interpretation

6.0 Interpretation of outlets

6.1 Market share

6.2 Market share of different soft drinks

6.3 Market share of equipments

6.4 Percentage share of glow sign board

6.5 Percentages of satisfied distributers

Chapter 7: Market survey

7.0 Research methodology

7.1 Dealer survey

7.2 Limitations of the research

Chapter 8: Conclusions and Suggestions

8.0 Conclusions

8.1 Suggestions

Annexure

Glossary of terms

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[LUMBINI BEVERAGE PVT. LTD] Questionnaire

Bibliography

Chapter 1: Introduction to the study

1.0 Introduction

1.1 Purpose of the Study

1.2 Importance and Relevance of the Study

1.3 Research objective

1.4 Scope of Study

1.5 Characteristics of soft drinks

1.6 Methodology to be used

1.7 Limitations of Study

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INTRODUCTION

India with a population of more the 100crore is potentially one of the largest consumer markets in the world with urbanization and development of economy, tastes and interests of the people changes according to the advance nation.

Beverage industry is one of the fast growing industries in India. It can be divided into two sections i.e. carbonated and non -carbonated. The carbonated drinks can be further classified into Cola, Lemon, Orange, Mango & Apple segments etc.

Marketing includes all the activities like promotion, distribution, advertising etc. to fulfill the demands of all segments of consumers. Marketing is also convert social needs into profitable opportunities. So this topic provides all the essentials to the theoretical knowledge with practical knowledge and to inculcate the efficiency. It is also a requirement for the company to improve its service and product quality to achieve the ultimate goal.

Marketing is about winning this new environment. It is about understanding what consumer’s wants a supplying its more efficiency and more conveniently.

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[LUMBINI BEVERAGE PVT. LTD] India where more than 50% of the total population exists below poverty line the consumer can’t afford such high price for soft drinks. As a result the trading activities of the soft drinks industry are concentrated in and around big cities and town where the purchasing power of population is considered comparatively high.

Soft drinks industries in India has annual sale of about 5000crores, with per capita consumption of soft drinks at a low of eight bottles per annum is due to price factor.

So, marketing is both philosophy and technology. It is technology because it suggests ways and means for effective production and distribution of goods and services in the market to give maximum satisfaction to the consumer.

In this regard the marketing management with have to apply to marketing technology in the conceptual philosophy of a system. It is the process of system analysis in the marketing management for effective research and can be defined, “systematic objective and exhaustive study of tasks relevant to any problem in the field of marketing “.

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PURPOSE OF STUDY

A project cum training is an essential part of MBA +PGDM curriculum. This study was conducted on “A comparative assessment of the Pepsi performance in the cold drink market in Patna and promotional activities in Patna central region.

It also helps to make improvements in service and quality of the Pepsi product, for their long term existence in the market and earning profit.

Simultaneously, it is also helpful to me to learn about the consumer’s behavior and their demand for the beverages in particular area (market).

Executive training was undertaken on the following objectives:

To know the brand acceptance of Pepsi in the cold drink market in Patna.

To determine the factors which persuade the retailer for sale of Pepsi?

To know the effects of anti-cola advertisement on sale of Pepsi. To find out the company’s position & market share in the soft

drink market. To find out the exclusive outlets of Pepsi & its competitors. To find out the various competitors of Pepsi & their strategy. To find out promotional activities of Pepsi & its competitors.

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[LUMBINI BEVERAGE PVT. LTD] To understand the acceptance of Pepsi as compared to coke To identify the organizational features of Pepsi.

IMPORTACE OF THE STUDY

The topic has been already given to the company to collect information about current happening in the market. It also helps to makes improvement in service and quality of the product, for their long term existence in the market and earning profit.

Simultaneously, it is also helpful for me to learn the consumer behavior and observe their attitude toward demand of particular products practically.

RESEARCH AND OBJECTIVES

The following were the main objectives of the research:

To know the stock position of Pepsi and its competitors at different outlets.

To study the marketing and promotional activities at various retail outlets.

To know per day sale of Pepsi brand and its competitors in crates. To study the percentage share of Pepsi‘s cooling equipments. To know how many outlets are covered with glow signboard of

Pepsi? To know the market share of Pepsi products.

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SCOPE OF STUDY

The main scope of this research is ascertaining the various methods to increase the sales volume and distribution activity of concerned company. The methods include regular measures to make the position in the market and taking measures to confirm the brand position. One of the most important aspects of this study is also to increase the market segment for the products.

OTHER SCOPE OF THIS TOPIC MAY BE AS FOLLOW:

Target market segment Comparison of Pepsi products with its competitors. Identification of market potential. Evaluating customers need with company products. Collecting suggestions for product improvement etc. Evaluating awareness about Pepsi Company.

CHARECTERISTICS OF THE SOFT DRINKS

Unfinished goods (required chilling before consumption). Two way transportation (one filled bottles to market and

second empty bottles from market Heavy expenses on advertisement and promotions More attention to retailer .several schemes and other facilities

provided to them New flavor are introduced from time to time

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[LUMBINI BEVERAGE PVT. LTD] Highly competitive market with only two equally strong players

METHODOLOGY OF THE RESEARCH

For the purpose of gathering data from various dealers and consumer, I preferred collection of primary data with the help of open and close-ended questionnaires.

Defining the problem and the research objectives. Developing the research plan. Questionnaires. Sample size.

LIMITATION OF THE STUDY

The finding of the study may not be applicable to other places except Patna.

The respondents were too busy to give exact answer to all questions.

There is chance of under estimation of sales and income as it is the nature of human beings.

This study analysis is opinion of retailers only. The results may not hold good in the long run as taste and

preference of human beings are subject to change over a period of time.

There are chances of sampling error. Chances of biased data collections to respondents.

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Chapter 2: Industry Profile

2.0 Overview

2.1 Mission and vision of PepsiCo

2.2 History of Pepsi

2.3 Pepsi the Indian experience

OVERVIEW

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[LUMBINI BEVERAGE PVT. LTD] PepsiCo is a world leader in convenient foods and beverages, with 2006.Revenues of more than $35 billion and more than 168,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories.

Building for the future

PepsiCo is among the world’s largest consumer products companies focused on convenient foods and beverages. They were proud on their products are some of the world’s best known brands and they are enjoyed by billions of people around the world every day. There products are recognized for their quality, taste and value, and increasingly, for their contribution to healthier diets.

ABOUT US: the Pepsi Bottling Group (PBG) is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages, Some of the world's most recognized consumer brands. PBG became a publicly-traded company in March 1999 through one of the largest initial public offerings in the history of the New York Stock Exchange.

PBG generates nearly $11 billion in annual sales. It operates in the United States, Canada, Greece, Mexico, Russia, Spain and Turkey, accounting for more than one-half of the Pepsi-Cola beverages sold in North America,

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[LUMBINI BEVERAGE PVT. LTD] and about 40 percent of the Pepsi-Cola system volume worldwide.

OUR CUSTOMERSIn the U.S. and Canada, most of PBG's volume is sold in supermarkets, followed by the convenience and gas channel, where Pepsi brands have the market-share lead. The balance of volume is sold in mass merchandising outlets, restaurants and other fountain accounts.

In the U.S., Canada and Mexico, our sales people interact directly with most customers to sell and promote Pepsi products (Direct Store Delivery). In other international territories, PBG serves customers with a combination of Direct Store Delivery and third-party distributors.

Among the services we provide to our customers are proven methods to grow not only Pepsi brand sales, but sales in the overall beverage category. Ultimately, our goal is to help our customers grow their beverage business by making our strong product line-up readily available to consumers at every shopping occasion.

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[LUMBINI BEVERAGE PVT. LTD] OUR ORGANIZATIONThe people at PBG reflects the Company's emphasis on superior sales capability and service. In North America, more than one-half of PBG employees work in sales, followed by nearly one-third in operations.

Our organizational structure, based on a general management model, reflects the same priorities. The Vice President/General Managers of PBG's market units lead marketing and sales efforts in contiguous geographic areas with common major customers. We designed our organization to give our market units the autonomy to serve the needs of individual customers, develop market-specific strategies, and respond to local marketplace dynamics. From the General Manager to the frontline customer representative, the entire PBG sales force competes on a local level to serve existing customers and to win new accounts.

The Pepsi Bottling Group is a fast-paced, customer-focused company, with an entrepreneurial spirit. We offer careers in sales and sales operations, manufacturing, finance, human resources, information technology, field marketing, and general management. The Company's success hinges on the thousands of face-to-face transactions our frontline employees conduct with customers every day. That is an exciting, empowering career proposition for the individuals who

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[LUMBINI BEVERAGE PVT. LTD] make up PBG's sales force — and for the teams that support and lead them. The Company is an equal opportunity employer and values the diversity of its workforce

PBG AND PEPSICOPBG became an independent, publicly-traded company in March 1999. PepsiCo retains an equity interest in PBG of about 40 percent.

As an independent entity, PBG benefits from a much sharper definition of its role and is able to execute its business strategy more effectively on a local market level. PepsiCo's focus is on what it does best, which is developing innovation, building its powerful brands and creating the world-class marketing programs to support them. And, as PepsiCo's largest bottler, we at PBG can do what we do best: making, selling and delivering more of those brands, more profitably than ever before.

PepsiCo world headquarters is located in purchase, New York, approximately 45 minutes from New York City. The seven-building headquarter complex was designed by Edward Durrell Stone, one of America’s foremost architects. The building occupies 10 acres of a 144- acre complex that includes the Donald M. Kendall sculpture Gardens, a world acclaimed sculpture collection in a garden setting. PepsiCo global CEO is Indira K. Nooyi and Sanjiv Chadha is Indian PepsiCo CEO.

MISSION AND VISION OF PEPSICO

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[LUMBINI BEVERAGE PVT. LTD] PepsiCo’s mission is “to be the world premier consumer Products Company focused on convenient food 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’s wed, we strive for honesty, fairness ail,

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; “PepsiCo’s responsibility is to continually improve all aspects of the world in we operate –environmental, social, economical—creating a better tomorrow than today.”

Our vision is put into action through programs and focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable Company.

History of Soft drinks in India

Soft drinks are a non- alcoholic beverage. It is artificially flavored and contains no fruit or pulp. India with more than 110crores population is one of the largest consumer markets in the world after China. Soft drinks is a typical consumer product purchased by individuals to quench thirst and secondly for refreshment.Searching for the point of origin of Indian soft drinks, I first document on gold spot this was the first brand soft drink in India. it was introduced by Parle during later part 40’s .cola giant ,coca cola was the

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[LUMBINI BEVERAGE PVT. LTD] foreign soft drink to be introduced in India in 1965.CocaCola made a very good beginning and dominated the whole scheme right from the world go. It faced no competition at that time.

The extraordinary success of soft drinks can be attributed to the following factors;

Absence of contemporary competitive brand. Euphoric image build up in the western countries proceeded

the entry into Indian market,and Indians are very fond of foreign goods, services etc. due to

prolonged foreign rules.

Parle exports Pvt. Ltd. introduced Limica, Lemony soft drink in later 1970. Before Limca was introduced they had tentatively introduced Cola, Pepino, which they had to withdraw soon in the face of battering conformation with CocaCola.

Three of four groups of Indian companies, which had the required production capacity, started their own brand of Cola, orange, Lemon but failed to achieve their goal on national basis.

India always has love and hate relationship with MNC”S which gave a significant opportunities to soft drink industries in India when Coca-Cola decided to bind up it was being wasted.

Operation in 1977 rather than bowing to Indian government insisting on:-

Dilution of equity, as the government felt that list of foreign currency

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[LUMBINI BEVERAGE PVT. LTD] Manufacturing of the top secret concentrate in India Disclosure of the chemical composition of the essence

This left a large vacuum in popular soft drink market, and a vista was opened to any company with requisite technical, marketing and organizational skills.

The existence of coca cola from India in 1977 accelerated the growth of several Indian soft drinks in the form of tetra pack entered the market, among the Frooti, jump-in, and tree top where the prominent one. Till 1977, there equipped bottling plants and the distribution network were of no use. It looks them one year to develop new formula to survive and gradually came up with Campa, lemon, orange, and cola.

However Parle the pioneer in the soft drinks blazed its way to national prominence with their product “thumbs-up” bearing the slogan “Happy days are here again”. This particular slogan helped to win over the loyalists or addicts to Coca-Cola.

Indian soft drink industry started at a phenomenal rate, and all Parle products, Gold Spot, Limca and Thums-up became the brand leader in their own segment.

In spite of all these, the drink market still had large gaps, as claimed by soft drink manufacturers. To fill these gaps, many soft drink concentrate and squashes flooded the market .The Indian soft market basically offered three flavors i.e. Orange, Lemon and Cola.

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[LUMBINI BEVERAGE PVT. LTD] 1988 saw the entry of the multinational company PEPSI to the Indian market, 11 years after the existence of Coca-Cola. It had name, fame and edge of being one of the best in the game and it also offered stiff competition to Parle and Coke.

HISTORY OF PEPSI

Pepsi-Cola Company was founded by CALEB D BRADHAM in 1890 at North Carolina in USA. Its CEO is Indira k.Nooyi and in India PepsiCo. Holding its chairman is Mr.Rajiv Bakshi. The head office of PepsiCo in India is at Gurgaon. Presently it operates in 196 countries.

Pharmacist CALEB it to cure the disease “DISPARSIA”, It is from this word that was related to Pepsi. Soon it entered the American market as

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[LUMBINI BEVERAGE PVT. LTD] soft drink which at that time was mostly dominated by Coca-Cola, but soon Pepsi was able to dominate the Cola market and thereafter it has been no looking back. Pepsi and Coca-Cola are engaged in a ferocious cold war that has taken the whole world by storm.

Pepsi stands 51st position among the fortunate 500 companies of the world. Its total capital is approx $3000crore and total sales annually are worth $37crore, half of which comes from beverages and other half from food division. The beverages arm of the PepsiCo. Is Pepsi-Cola company and the snack food company is called Frinto-lay-Inc.

PEPSI THE INDIAN EXPERIENCE

Previously there were three tag “Yehi Hai Right Choice Baby”, “Nothing Official about It”& “yeh Dil Mange More” which was immediately ring a bell-it’s to be a Pepsi. Pepsi in short span of its operations in India has found a place in hearts and minds of the Indian consumers. The success has primarily been due to the innovative and passionate Indian team which has been built over the years. Pepsi is a trendsetter managed and run by Indians, where important decision is taken locally.

Pepsi started its operation in India in 1988in Kanpur and since PepsiCo. Has set up a fully integrated operation India viz. manufacturing, research and development, marketing distribution and franchising – covering fruit/vegetable processing, export, snack and food beverages, In 1993 PepsiCo. Set up a holding company to further accelerate growth through new initiatives and joint ventures PepsiCo is fully

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[LUMBINI BEVERAGE PVT. LTD] committed to India and the national objectives of development of technology and accelerating exports and employment. It has invested 500crore in India to develop the local market. Pepsi has distributed exclusive franchises in India to bottle its total products. There 34 bottling plant of Pepsi in India. Pepsi directly controls some and rest is under various franchises.

Some special features in Indian scenario

Pepsi has set up a concentrate plant at Channo, District Sangur, Punjab, with an investment of 55million. The state of the art plant house a world – class laboratory where soft drinks from all over the world are tested. This concentrate plant supplies Pepsi. 7-up teem, Miranda, Orange, Apple & Lemon flavors to all Pepsi bottling plant in south Asia. Pepsi has 34 bottling plant in India out of which 8company are owned and 26 are owned by Indian franchises. PepsiCo has invested heavily on up- gradation of this bottling plant and has put 5 green field projects in backward areas such as Jaipur, Bazapur in U.P., Bharuch in Gujrat, and Sonapur in W.B.and Naclamangala in Kernatka. New project are coming out Maharashtra and Tamil Nadu.

In addition to the company owned bottling operation [COBO], Pepsi has 26 Franchises owned bottling company [FOBO] units in India. These franchises manufacturers are also planning to install substantial additional capacities. I last two years PepsiCo’s franchisees have put up nee bottling plant in Jaipur, Bhopal, Hajipur [Bihar], Guntur [A.P.] and

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[LUMBINI BEVERAGE PVT. LTD] Guwahati [Assam] with further investments. PepsiCo Franchisees are amongst the best in the Pepsi world.

JUICES:

Pepsi Co. plans to launch juices in big way in India, there by helping the farmer in fruit procurement. PepsiCo agriculture scientist has undertaken research on mango, guava and orange and these fruits would be the priority area for the juices launch in India. Presently Pepsi has one juisic brand.

EMPLOYMENTS OPPERTUNITIES:

Pepsi provide direct and indirect employment to person in supplying it’s raw material, packing materials, distribution vehicles, glass bottle, plastic carets, display rack, fridge etc. and to small artisans, painting and small trader in market places activity. All the Pepsi business in India is either in industries with backward linkages with farmer or in service industry being highly distribution oriented. The Pepsi system operate over 300 trucks (direct operations), 8000 three wheeler (distributers) and at least 1000 push carts, serving over half a million outlets in India. By the year 2005 the no. of outlets to be served are expected to be doubled.

DEVELOPING SPORTS:

Today Pepsi is one of the main sponsors for sports related activities in India. It has continued to promote up coming new players of cricket,

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[LUMBINI BEVERAGE PVT. LTD] football, hockey etc. Pepsi was the official sponsors of the world cup 2007.

Pepsi has developed a Pepsi cricket academy, which would develop over 500 young cricket enthusiasts in next 5 years. Similarly Pepsi cricket coaching camps and clinics are held to coach young boys in north and south.

COMMUNITY RELATIONS:

Most of the bottling plant Pepsi is located in backwards area, there by giving huge employment opportunities in this area. Pepsi, as responsible company, undertakes social project in and around the bottling plant. These include support to the education centre, sponsors inoculation camps, providing free health check up, initiating sanitation, drives, promoting literacy drives and helping villages to put up bus shelter etc.

REVENUES GENERATIONS:

It is estimated that PepsiCo, and its franchises generates over Rs.600crores to the exchequer by the collection of excise and sales tax.

Chapter 3: Introduction of the organization

3.0 Lumbini Beverage Pvt. Ltd.

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[LUMBINI BEVERAGE PVT. LTD] 3.1 Profile of LBPL

3.2 Organizational hierarchy

3.3 Production process

3.4 Product profile

LUMBINI BEVERAGE PVT. LTD

Lumbini Beverages pvt. Ltd is franchisee of PepsiCo. India. Lumbini Beverages pvt. Ltd, a rupees 25crores unit was promoted by the family of KHILANI in the year 1996 with the proper infrastructure approved by

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[LUMBINI BEVERAGE PVT. LTD] PepsiCo Headquarter and the unit went into production, subsequent and marketing operation from 1997. Mr. Ravi Khilani is MD of this company the plant has 57 production staff 30 executives and 32 tem members within marketing and seller functions during the pick session i.e. Between April- July, the no. of production staff at times is increased to take care of increased production functions.

The unit has capacity of bottling 400-600 bottles per minute or3000 crates of 24 bottles on a daily basis, i.e. when production schedule is on through out the day with three shift production system. The plant follows international quality audit standard for the purpose of maintaining quality controls in the quality of the product because the quality control function, by far is the most important criteria for purpose of competing in terms of quality in the contest of the market competition.

This bottling unit at Hajipur has created a source of employment for a large no. of population residing in the Bihar and has also come out with quality/treated water resources, which is now being thought of diverting in to near by agriculture sector as an ongoing source to facilitate of management. This unit in the year to come should one of the most important industrial zones in this part of the country and this reality manufacturing and marketing unit should be a set of attraction as far as commercial activity are concerned.

Profile of LBPL

Company land area : 12 acres

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[LUMBINI BEVERAGE PVT. LTD] Location and authority : EPIP, Industrial Area, Hajipur

Name of Director/Occupier : Mr. Charan Khilani

Name of the MD : Mr. Ravi Khilani

Name of CEO : Mr. G.P Singh

Name of FM : Mr. Dhawan

Name of HR manager : N.K Prasad

Industrial license no. : Regn. No. - H 12475(c)

Factory license no. – 66750/VLI

Date: 16.08.1997

F.P.O. License no. -10607/97

Capacity : 1500 bottles per minute

Nature of product : Soft drinks, Pepsi, Mirinda, Soda, Slice,

Aquafina

No. of employees : 200 +150 (max) seasonal labors

Control board : No. 1877. Date – 07.04.1997

BOARD OF DIRECTORS

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[LUMBINI BEVERAGE PVT. LTD] 1. Mr. Charan Khilani (Director)

2. Mr. Ravi Khilani (Managing Director)

3. Mr. Manoj Khilani (Plant Director)

4. Mr. G.P.Singh (CEO)

5. Mr. Arun Kumar Singh (TDM, Patna)

ORGANIZATIONAL HIERARCHY

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The process of manufacturing of aerated water (soft drink) like pepsi brand product is divided into five main parts such as:-

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[LUMBINI BEVERAGE PVT. LTD] 1) WATER TREATMENT.2) SYRUP MAKING.3) BOTTLE WASHING.4) FILLING.5) TESTING OF PRODUCT.

WATER TREATMENT

Water treatment is very essential in soft drinks plant as the nature and quality of varies from place to place. To set uniform and standard water, the process of treatment is carried on. The water taken out from bore well having depth of 500m by the help of motor pump & pipe lines. are connected to the storage tank where is pre-chlorinated by chlorinator & then by the help of pipeline comes to a treatment tank called “Coagulation tank” where to this water, solution of different strength of bleaching powder, ferrous sulphate, hydrated lime are added through dosing pump to reduce the alkalinity hardness, kills the bacteria and the pH become 7.5.Mechanical stripper mixes the chemical & then suspended matter settles down as sludge& clear water passes to retention tank. From this tank the water passes through sand filter containing fine sand and pebbles & carbon filter containing granular carbon & finally through the water polisher ,micron filter, UV lamp to ensure clear & sanitary water for use. Further water is used in bottle washer &boiler needs softening .For this purpose, the water from storage tank after passing through two water filter beds containing fine sand and granular carbon respectively comes through a bed of resin where it is softened.

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[LUMBINI BEVERAGE PVT. LTD] This softened water is essential to use in the boiler & bottle.Water to reduce scale formation inside the machines.

Description of the above ray diagram

36

[LUMBINI BEVERAGE PVT. LTD] Firstly the water should be taken out from the earth through motor from bore well which is about 500m deep. After that it store in the underground tank which is also know as storage tank having capacity of 1.5lakh litre at that time the hardness of water is 6.8 ppm.it has two in number. Then it reaches at coagulation tank having capacity of 80,000 litres in which ferrous, lime and bleaching powder is there which is used to remove the hardness of the ground water then it reaches to intermediate tank and after that it passes through sand filter in which small pebbles and fine sands are there ,where they remove small particles and transfer to the ACF i.e. activated carbon filter in which mainly chlorine is used having volume of 30 cubic meter per gram then it passes through 5 micron cartilage and UV light to remove small microbes.

SYRUP MAKING

37

[LUMBINI BEVERAGE PVT. LTD] For the syrup making of the particular brand, calculated quality of sugar, water, activated carbon (powder) & by flow super cell known as filter aid are taken into a sugar space to enter stream & also filter by motor with agitated sugar syrup called raw syrup is prepared by dissolving the sugar with continues stirring and heating by steam supplied by oil fried boiler. This hot syrup by the help of pump is filtered through a filter press attached with the series of quality filter paper to separate out carbon particles. Clear hot syrup by the help of SS pipeline passes through water P.H.E. for cooling then another P.H.E. circulated by glycol for further cooling. The chilled syrup comes to the mixing tank, which is cleaned and sanitized prior to use. After circulation of sugar quantity by Brix Hygrometer, concentrate are added and mixed thoroughly by the mechanical stirrer filter to the tank. This syrup is known as finished syrup ready to drink the concentration mainly. The liquid part are also kept in a cold store, the temperature of the finished syrup is fixed in the room temperature is also maintained by air conditioner. all the containers used in the syrup making are cleaned and sanitized by sodium bi- carbonate, strong chlorine and hot caustic soda solution.

BOTTLE WASHING

Bottle washing is an important part in the soft drink plant. The empty durable and restorable bottles used are returned from market in plastic crates, and fed to bottle washing machine (washer). The machine has double end system with circular chain to carry the bottles. Caustic soda, tri sodium –phosphate, sodium glyconate are added to the caustic tanks filled in with water heated by stream supplied by bathe boiler. The empty bottles enter to the caustic solution and finally

38

[LUMBINI BEVERAGE PVT. LTD] washed with water through spray-jets fitter dared discharged in other end. The washed bottles after proper inspection are directed to filling machines through conveyor. Cleaning and smooth running of chain carrying bottles. SU-260 and SU-773 are used for bottle cleaning, shinning and mold removing concentration.

FILLING

Finished syrup and treated water lime are concentrated to a dosing pump, which mixes syrup and water in the ratio of 1:5 and syrup mixed with water enters to carbonate tank to mix with carbon di oxide gas., which are preserved in cylinders for use. The cylinder is connected through carbon di oxide pressure and temperature of liquid; we use recording control (Taylor). The syrup passed through PHE that is cooled itself by the circulation of chilled glycol supplied by chilling compressor. To run the machine for chilling F-22 gas is used. The syrup being chilled easily mixes with carbon di oxide and enters to filter for billing .The filter is fitted with filing valves and lift cylinders. The lift cylinders function pressure of air supplied by an air compressor. The syrup known as beverages in this stage is filled in the cleaned bottle, which ar4e durable in the nature and returnable by the buyer. By the filling machine by a counter pressure of carbon di oxide gas. After beverages is filled in bottle goes it goes to the crowner where with the help of crown corks the bottle are sealed(crowned) to protect the carbonation, flavor outside contamination and spoilage. The finished product are coded decoding machine and inspected properly by inspection light while passing through the conveyor fitted with SS chains. The empty plastic rated passing through a conveyor enter to crates, which are durable in

39

[LUMBINI BEVERAGE PVT. LTD] nature and returnable by buyer, put on plates and sent shipping for shipment. The entire container in contact with syrup are properly cleaned and sanitized by soda-bio-carb, hot water, hot Caustic soda solution and strong chlorine base.

TESTING OF PRODUCT

Finally the finished syrup during bottling is tested in laboratory to meet the parameters and also to get the standard and quality product. To maintain the standard and uniformility in products, the sugar contents and carbonation in the filled bottle are checked in regular intervals by Brink hydrometers refract meter and pressured gauge. A digital pH meter tests the pH. Electronic digital balance is used to the weight chemical to conduct test in the lab. The purity of carbon dioxide is checked by a carbon dioxide purity tester. The microbiology test of the products and water used in syrup making and production are also done to ensure that the product is free from any bacteriological contamination. To conduct the micro test, hot sterilizer incubator autoclave, pads filler membranes are product used. the diesel generator is operated in case of electricity failure for smooth operation of the plant and for drawn electricity from the state electricity board the transformer is used.

RAW MATERIAL INPUTS :-

A soft drink bottling plant the following things as a raw materials:-

40

[LUMBINI BEVERAGE PVT. LTD] Sugar Flavor Water Carbon di oxide Crown cork Glass bottle Plastic crate.

Sugar

High purity crystal sugar is required to produce the sugar syrup for soft drink. The main supplier of sugar for Lumbini beverages Pvt. Ltd. is M/s KCP Ltd.chennai. The usual requirement of sugar is around 800 gm par carat for all flavors.

Flavor

Pepsi food Ltd. is supplying all essence of flavor for Lumbini Beverages Pvt. Ltd. from their plant Chennai, Bhavnagar (Punjab).

Water

The required water of Lumbini Beverages Pvt. Ltd. is being met from the high yielding deep boring well with pumps. Adding softening plant & DM Plant so as to meet the required quality of water then treats the raw water taken out from these well. Water quality is being strictly adhered through regular sampling & analysis.

Carbon dioxide

41

[LUMBINI BEVERAGE PVT. LTD] Carbon di oxide gas of required purity is being carried on from Hindustan Gas India Ltd. and also from IOC Patna and Barauni, as per requirement of flavor. The usual consumption of carbon di oxide is 1 kg per 10 carats in case of Pepsi, 1 kg per 5 carats of Soda water and the rest flavor 1 kg per 114 carats.

Crown Cork

Lumbini Beverages Pvt. Ltd. takes crown cork from Manksic Crown Ltd., Bhopal and Ghaziabad respectively.

Glass Bottle

Lumbini Beverages Pvt. Ltd. takes flint and green glass bottle from Hindustan National Glass Ltd. Tapovan (Hrishikesh).

Plastic carats

Lumbini Beverages Pvt. Ltd. takes plastic crates from Neelkamal Plastic Ltd., Nasik and Supreme Industries Ltd., Nasik.

42

[LUMBINI BEVERAGE PVT. LTD] PRODUCT PROFILE

Products

•

43

[LUMBINI BEVERAGE PVT. LTD] 3.5 SWOT ANALYSIS

After doing 8 weeks field work and survey I can take it out the SWOT analysis for Lumbini Beverages Pvt. Ltd. and Pepsi Brand.

Strength

Lumbini Beverages Pvt..Ltd. is Franchisee Owned Bottling Organization (FOBO) of world’s famous cold drink company Pepsi.

LBPL uses state art and fully automatic machines and technology for the production and bottling of the soft drink.

It has a very strong network and built market and currently holds all the parts of the state.

It has wide range of product varieties & takes back breakage, burst bottles etc.

Though it has strong brand equity, brand image , it can survive in the most competitive situation.

It has built market & market share and holds more % with respect to its competitors.

Customer retention and satisfaction after sales is good.

Weakness No cost cutting program for the products. Promotional activities in the rural market are not up to the

mark as compared to the urban market.

44

[LUMBINI BEVERAGE PVT. LTD] Brand Pepsi in the cola flavor is one of the popular lagging

behind its nearest competitor, only due to high sugar content and less thrilling taste.

Not availability of all the products on demand. Lacking of communication with retailers. Timing of distribution is not very good. The cooling system is not distributed properly.

Opportunities

Although in the cola market there are many competitors, Pepsi still has the opportunity to enlarge its market share because the cola in the market is quite monotonic. Most of the end user is young people. There are still some people who do not like the taste of the cola. So we can try to provide some other taste of cola such as adding some lime juice. We can change the flavor in order to meet different taste of different people.

New innovative idea for advertisement like road show like “ bheja fry 7up try” & mountain dew campaign

45


Threats

As to the threats, all of us know that Pepsi-Cola and Coca-Cola have the completion for about 80 years. Although Pepsi-Cola have won several times during this completion. The market share of Pepsi-Cola is a little bit smaller than Coca-Cola.

There is another threat nowadays, some local cold drinks such as sudha dairy and anuj dairy cola have takes their feet in the market.

One of the products of their competitors in clear lime and lime flavor as a very good in market share due to its taste.

Coca-Cola is now spending more & more to boost up the market share & sale.

46


Chapter 4: Marketing Strategy & Distribution Channel

4.0 Marketing strategy

4.1 Marketing mix

4.2 Promotional activities

4.3 Advertising & sales promotion L.B.P.L

4.4 Merchandising policy

4.5 Distribution channel of LBPL

47


MARKETING STRATEGY:

Marketing Strategy is the complete and unbeatable plan designed

specifically for attaining the marketing objective of the firm. The

market objective indicates what the firm indicates, what the firm

wants to achieves, the marketing strategy provides for achieving

them.

The marketing is not just idea. It is a well outlined plan, and there

are different ways to formulating it. Basically formulating of

marketing strategy consists of two main steps.

Selecting a target market, assembling the marketing mix, actually,

the target marketing and marketing mix together constitute the

marketing strategy of the firm.

When the Pepsi food company entered in the Indian soft drink

market, the market was already prevailed by coke and previously it

was Parle. Pepsi tried to establish in India with a unique marketing

policy. Pepsi took into consideration of youth segment target

market. Though the advertisement of Pepsi highlighted the style of

living of young generation with different walk of life, Pepsi

brought in its advertisement different stalwart’s personalities from

fields like young cine stars, sport stars and famous personalities

from different fields. It has attracted the young generation and of

48

[LUMBINI BEVERAGE PVT. LTD] course increase the sale of Pepsi, also organized many national and

international sports events to attract the young generation.

MARKET MIX OF L.B.P.L

The set of controllable tactical tools:

A product, place, service and promotion (4p’s) that the firm blends

to produce the response it wants in the target market. These are the

following 4ps.

Products: - That could meet the identified needs of chosen

consuming groups.

Place: - It performs various functions like transportation,

warehousing, channel management etc. so the products easily

reach the consumer.

Promotion: - The firm carries out a no. measure like

personal selling, advertising and sales promotion

programmed with view to communicate to the consumer and

promoter of the product.

It is the mechanism to achieve the consumptions of

marketing process, striking the level of price that is accepted to the

firm as well as consumer.

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[LUMBINI BEVERAGE PVT. LTD] 4P’s policies of the Pepsi products:

1. Product: - There are five lines of products of soft drink in India

that is almost matched with international quality product line.

Pepsi - 200 ml, 300ml, 600ml. and 2000 ml.

Miranda - 200 ml, 300ml, 600ml. and 2000 ml.

7 up - 200 ml, 300ml, 600ml. and 2000 ml.

Mountain Dew - 200 ml, 600ml. and 2000 ml.

Slice - 250 ml, 500ml, and 1000 ml.

2. Price: - Product price are fixed by Pepsi Co India according to

competitors product price.

3. Place: - Pepsi has a strong channel of distribution, and

intermediaries command the distribution work.

Plant - Depot - Distributor - Consumer.

By this simple distribution, Pepsi is doing well. The company is

trying to reach every remote village area. The company has

succeeded to some extent in reaching its target.

3. Promotion :- In the specific, sales promotion methods are those

sales activities that supplement both - personal selling and

advertising and co-ordinate them and help to make them effective

such as display, shows and exposition and demonstrations and

other recurrent selling efforts not in ordinary route.

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[LUMBINI BEVERAGE PVT. LTD] Pepsi has variety of tools and techniques of sales

promotion. Like for example sales promotion letters, catologs,

point of purchase (POP), display, customer service program and

demonstration of free sample.

PROMOTIONAL ACTIVITIES (FOR RETAILERS)

Promotional activities consist of various means of communicating

persuasively with the target audience. The important methods are:

Advertisement: - Where an identified sponsors pays media

(such as TV) to transmit to target consumer.

Personal selling:- Where sales representative employed by the

firm engage in interpersonal communication with individual

consumers and prospective customers.

Sales promotion:- Where the market utilizes displays,

demonstrations, premiums, contests or similar devices.

Publicity and Public relation:- Help to stimulate supportive news

items about the firm and its product that have greater credibility

with public than advertisement.

Of all the methods of promotional activities that constitute the

promotion mix, sales promotion is the only one method that makes

use of incentives to complete the “Push Pull promotional

strategy” of motivating the sales force, the distributor and the

consumer transacting a sale.

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[LUMBINI BEVERAGE PVT. LTD] According to “American Marketing Association” sales

promotion refers “Those activities other personal selling,

advertising and publicity, that stimulate consumer Purchasing and

dealer effectiveness, such as display, shows and exhibition,

demonstration and various other non-recurrent selling efforts not in

ordinary. “Sales promotion” is also known by the name of

“Extra Purchasing Value” (E.P.V.).

VISI COOLAR DISPLAY,OYE BUBBLY CAMPAIGN

MS DHONI, SHAHRUKH, DIPIKA

52

[LUMBINI BEVERAGE PVT. LTD] MEANING AND OBJECTIVE OF SALES PROMOTION

SL.No

SalesPromotion Meaning Objective

1 Price off offersOffering product at lowerthan the normal price

To encourageimmediatesales, attract non nusers,induce new product trial.

2. Quantity offoffer

offering more quantity ofthe same product at noe x t r a c o s t o r a v e r ynominal increase in theprice the larger quantitypack.

To encourage longerduration consumption,highest or excess quantitymo ve me nt fr o m t hef a c t o r y , t r a d e u pconsumer fo r higherquantity packs size.

3. Primium

O ffe r o f a n a r t ic le o fm e r c h a n d i s e a s a nincentive in order to sellproduct of service

To encourage purchasestimulate loyalty, offseason sales promotion,induce trial of premium tothe consumer.

4. Coupans

When the consumer isentiled to redeem specificstandeard certifecate for aproduct free or in partpayment. Coupons areu s e d b y b o t h t h emanufacturers and thed e a l e r s f o r s a l e spromotion. Coupons maybe distributed by e-mail,by media advertisements,doo r- to - door. Ins ideproduct package or bydealers on purchase.

to encourage producttrial, build loyalty, tradeup regular users stimulatere-purchase rate, solicitenquiries.

5.Consumer

contests andlucky draws

W he n ind ivid ua ls a reinvited to compete on basisof creative skills. The latteris based on the chance orluck factor.

T o c r e a t e b r a n dawareness and stimulateinte rest in the b randacquaint consumers withbrand usage and benefitsbuild traffic at the storep r e c ip i t a t e b r a n dp u r c h a s e . O b t a i nconsumer feedback ,pjromote advertisimenttheme of the company.

6. Discounts Other than normal tradeand cash discounts.

To push more sales totrade early cash recovery

7.Point-of-Purchase

(POP)

Those special displays,racks banner, exhibits, thatare placed in the retailstore to support the sale ofa a brand.

To attract traffic at there ta il s tores, remindcustomers, encourageimpulse buying, ensurevisibility to the advertisingcampaign.

53


ADVERTISING & SALES PROMOTION IN LBPL

Advertising and also promotion activities play a vital role in entire

marketing efforts. Without these aspects a quality product can not

survive in the market. Advertising and sales promotion tools are

most essential for the modern global marketing. This chapter has

therefore been devoted to the studies of advertising and sales

promotional activities in Lumbini Beverage Pvt. Ltd. The two

basic objectives for carrying out such various promotional

activities by Lumbini Beverages Pvt. Ltd. is “To generate more

sales as well as to create and maintain an image of its product”

L.B.P.L. carries out its promotional activities as controlled and

integrated programmers of communication and material design

present its soft drink to the perspective customers. It also helps in

communicating the need satisfying of soft drink to facilitate the

sales eventually to contribute towards the profit in long run.

The sales used L.B.P.L. for fulfilling the various purposes for

its promotional activities are the following:-

Food ‘N’ Fizz

Space Club

Payaas bujyhao profit badhao

Agreement

54

[LUMBINI BEVERAGE PVT. LTD] GOD(Glass on deposit)

Displaying equipments

Scratch card, lucky draw & prize.

MERCHANDISING POLICY

In today’s fast moving industry and highly competitive market,

only those products are likely to be purchased which are capable of

hitting the impulse of the consumers. The products appeal should

be able to penetrate and get embedded into the perpetual space of

the consumer’s mind. The concerned product should induce to the

consumers. Pepsi believes that “Jo Dikhta Hai Wahi Bikta Hai”

i.e. any product which is visible is bound to be sold.

METHODS OF MERCHANDISING

Visi cooler placement

Glow signboard

Paintings

Crate Stacking

Umbrella

Banners

Display

Special Schemes

55


DISTRIBUTION CHANNEL OF “L.B.P.L

To make its products available at the right place, at the right time

in the market, at the right place, the sales department of the

company plays major attention towards controlling the channel of

distribution.

The company right from its beginning stage maintains single type

of marketing channel. The nature of channel is as follows:

COMPANY

DEPOT

DISTRIBUTORS

RETAILERS

CONSUMERS

ABOUT DISTRIBUTORS

At first, soft drink is supplied to distributors. Retailers cannot take

the delivery directly from the company. They have to take it from

their respective or nearest distributors. The distributors selected on

56

[LUMBINI BEVERAGE PVT. LTD] the basis of assurance given by them regarding minimum sales,

which they have to maintain annually. The selection is also done

on the financial position and reputation of distribution in the

market. As for example, first priority is given to those people who

are in cigarette business. Depending upon market, each distributor

in its initial stage, deposit some security money. This amount

varies between five thousands to the thousand. The distributors, at

first have to seek the permission of the sales department for the

number of cases of soft required by them. After getting the proper

authority from the sales department, they take the delivery from

the shipping department paying the requisite either in cash or as

demand draft.

The distributors can be dropped if they fail to achieve the required

target to sales. They can be also dropped when they don’t follow

the instructions given by the company or when they charge high

price or when they are engaged in black marketing, loading etc.

But the company has not dropped any of its distributors till now.

The supply of soft drinks to the distributors depends upon the ups

and downs in the sales. But, in the initial stages, the distributors

have to sell up to a minimum target set by the company or as

decided by an agreement between the company and the

57

[LUMBINI BEVERAGE PVT. LTD] distributors. In the last stages soft drink is supplied as and when

demanded by the distributors.

ABOUT RETAILERS

The distributors select the retailers. There is no relation between

the company and its retailers. On the other hand there are no

definite and fixed criteria for the selection for appointment of

retailers from the side of distributors. Any one like “Panwala”,

“Cigarette shop” or any other shopkeeper can have the stall for the

sale of soft drinks and they are called or dealers. They have to give

assurance to the concerning distributors for better sales and at the

time of taking delivery they have to deposit the security that is the

change for the empty bottles with specified purchasing price.

Generally, there is no compulsion on the part of distributors to

provide the transportation facilities to their retailers, but the

distributors of the big areas like Patna, Muzzaffarpur, Patna

provides the transportation facilities to their respective retailers.

The distributors and retailers are independent to sell as they want

but are controlled to some extent by the company also, as they

have to give some assurance regarding minimum sale. It happens

so because they are given some incentives also. They are fully

independent to gear up the market, as they want.

58


Chapter 5: Product Performance of Pepsi

5.0 Training product comparison

5.1 Product availability

5.2 Pricing of products

5.3 Pepsi Performance in comparison

59


Comparative Products

SL.-No.

Major CSD Brands

Flavor PCI CCI

1. Clola PepsiCoca-Cola,Thums Up

2. Clear Lime 7 Up, Mountain Dew Sprite

3. Cloudy Lime Mirinda-Lime Limca

4. Orange Mirinda Fanta

In above table, I have shown product target in the market. Both

companies try to substitute each other product in the market. When

a company don’t fulfill the demand of market then other company

substitute that product with own product. In the market many time

seen that consumer demand a product according to his desire, but

due to lack of supply he switch over of substitute product. So,

companies always want with substitute product for enlarging his

market share.

Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is

substitute for 7 Up and Mountain Dew, Fanta is substitute for

Mirinda & Limca is substitute for Miranda Lime.

60


Products Availability of Pepsi

SL.No Products 200ml 250ml 300ml 330ml 500ml 600ml 1000ml 1200ml 2000ml

1 Pepsi

2. Pepsi diet

3. Pepsi Gold

4. Mirinda

5. Mrinda Lime

6. M. Sorbet

7. 7 Up

8. M. Dew

9. Pepsi Can

10. 7 Up Can

11. Mirinda Can

12. M. Dew Can

13. Diet Can

61

[LUMBINI BEVERAGE PVT. LTD] 14. Slice

15. Aquafina

16. Tropicana

17. Everest Lehar

Pepsi Products Price list for Retailers

SL.No Products 200ml 250ml 300ml 330ml 500 ml 600ml 1000ml 1200ml 2000ml

1 Pepsi

2. Pepsi diet

3. Pepsi Gold

4. Mirinda

5. Mrinda Lime

6. M. Sorbet

7. 7 Up

8. M. Dew

62

[LUMBINI BEVERAGE PVT. LTD] 9. Pepsi Can

10. 7 Up Can

11. Mirinda Can

12. M. Dew Can

13. Pepsidiet Can

14. Slice

15. Aquafina

16. Tropicana

17. Everest Lehar

Pepsi Products Price list for Customers

SL.No Products 200ml 250ml 300ml 330ml 500 ml 600ml 1000m 1200ml 2000ml

1 Pepsi

2. Pepsi diet

63

[LUMBINI BEVERAGE PVT. LTD] 3. Pepsi Gold

4. Mirinda

5. Mrinda Lime

6. M. Sorbet

7. 7 Up

8. M. Dew

9. Pepsi Can

10. 7 Up Can

11. Mirinda Can

12. M. Dew Can

64

[LUMBINI BEVERAGE PVT. LTD] 13. Pepsidiet Can

14. Slice

15. Aquafina

16. Tropicana

17. Everest Lehar

Coca-Cola Products Price list for Customers

SL.No Products 200ml 250ml 300ml 330ml 600ml 1000ml 1200ml 1500ml

1. Coca-Cola

2. Thums up

3. Sprite

4. Fanta

5. Limca

6. Maaza

7. Coca-Cola Can

65

[LUMBINI BEVERAGE PVT. LTD] 8. Thums Up Can

9. Sprite Can

10. Fanta Can

11. Coke Diet

12. Kinely Soda

13. Kinely

14. Fruit Jucie

SL.No. Months 2007 2008

arget Achieved % Target Achieved %

arch

pril

May

June

otal

66


0

20

40

60

80

100

120

Jan Feb M arch April

70

40

60

85

4565

105

6772 68

5567

M onths

Ta rg e t (0 00 )2 0 06 A ch iev ed2 0 07 A ch iev ed

After comparing these two year data I have reached this calculation that this year Pepsi team of Patna have preformed very well in compared to last year. This In Patna Pepsi investment is very short in comparing to coke but selling graph show Pepsi Market share increased in compare to last year.

CHAPTER 6: DATA ANALYSIS AND INTERPRETATION

6.0 Interpretation of outlets

6.1 Market share

6.2 Market share of different soft drinks

6.3 Market share of equipments

6.5 Percentage share of glow sign board6.6 Percentage of satisfied distributors

67


INTERPRETATION OF OUTLETS

TPYES OF OUTLETS

68

[LUMBINI BEVERAGE PVT. LTD] 10 O ther

9 Phone booths

8 Ice - cream /Ice-centers

7 cold drinkscentre

7 C inem a Hall

4 Restaurants

5 Hotel

3 Pan shop

2 sw eet shop

1 G eneral/ K irana stores

Interpretation : Many types of retailers in the market to sell the pepsi & Coke products I have taken that list form company & classified that shops according to company guidelines. General & Kirana stores are measure thing for company because their share in one - third So company always try to make good relationship ship with them because 20% sell come form them.

MARKET SHARE Over all market share of the cold drinks cos. in Patna

69

[LUMBINI BEVERAGE PVT. LTD] SL. No. Companies Name Total (%)

1. PCI 26

2. CCI 38

3. Parle agro 8

4. Amul 8

5. Other Local Player's 20

Total (%) 100

PCI

CCIParle agro

AmulOther

Interpretation: PCI market share is little bit short in comparing to Coke

for enlarging more market share PCI will have to invest more in the

market and it advertisement.

Over all market share of PCI & CCI in Patna

70


0%

5%

10%

15%

20%

Cola C lear Lim e

O rang

10 %

CloudyLim e

M ango

15%13 %

17 %

1 %

4 %

11 %9 %

8 %

12 %P C I

C C I

Interpretation :- On the basis of my collected data in Patna cold drink

market I have reached this stage that I can show overall market share of

all cold drink flavor.

MARKET SHARE OF DEFFERENT SOFT DRINKS

The Cola Market:

Product % Share

Pepsi - Cola 42 %

Coca-Cola 13 %

Thumps Up 45 %

Total 100 %

Market Share (%)

71


Pepsi-Cola

Coca-Cola

Thumps Up

Interpretation: There is dominancy of Thums Up in the cola segment of soft drinks in the market. Pepsi is its competitor.

The orange flavored soft drinks:

Product % Share

Mirinda 52 %

Fanta 38 %

Other 10 %

Total 100 %

Diff. orange flavor market share

72


Mirinda

Fanta

Other

Interpretation: The Graph shows that there is a majority of customers of Mirinda Orange flavor in the market. It dominates the market over Coca-Cola’s product Fanta.

Clear Lime Market share :

Product % Share

7 up 45 %

Sprite 55 %

Total 100 %

Market Share of clear lime

73


Dabur Real

Tropicana

Godrej

Others

Interpretation : There is great dominancy of Sprite in the market. Customers always demand. They take 7 Up only as a substitute of that.

Mango flavor market share :

Product % Share

Slice 30 %

Maaza 40 %

Frooti 30 %

Total 100 %

Market Share of Mango flavor

74


PCI

CCI

Slice 3

Interpretation : The Graph shows that there is a majority of customers of Maaza (mango) flavored in the market. It dominates the market over Pepsi’s product Slice.

Market share of Juice

Product % (Share)

Dabur Real 62 %

Tropicana 20 %

Godrej 8 %

Other 10 %

Total 100%

75


Market share of Juice

Dabur Real

Tropicana

Godrej

Others

Interpretation : The Graph shows that there is a majority of customers of Dabur real Juice in the market. It dominates the market over Pepsi’s product Tropicana.

PERCENTAGE SHARE OF CHILLING EQUIPMENTS :

Percentage Share of VISI Coolers :

Company No. (%)

PCI 26 1.60

CCI 1450 89.17

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[LUMBINI BEVERAGE PVT. LTD] Own 150 9.23 %

Total 1626 100 %

Market Share of Visi Cooler

0.00 % 20.00 % 40.00 % 60.00 % 80.00 % 100.00 %

%

O wn

CCI

PCI

9.23 %

89.17 %

1.60 %

Interpretation : From the above diagram, it is clear that 89 % of Vist cooler is of Coca-Cola while 1.6% is that of Pepsi and own is 9.23 %.

PERCENTAGE OF GLOW- SIGN BOARD

Company No. %

PCI 50 17 %

CCI 250 83 %

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[LUMBINI BEVERAGE PVT. LTD] Total 300 100 %

% of Glow board

PCI

CCI

Interpretation : From the above diagram it is clear that 17 % of glow

sign board is of Pepsi while 83 % is that of Coca-Cola.

PERCENTAGE SHARE OF SATISFIED DISTRIBUTORS :

Company No. of distributor Satisfied (%)

PCI 06 04 31

CCI 10 09 69

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[LUMBINI BEVERAGE PVT. LTD] Total 16 13

100%

Distributors Satisfication (%)

PCI

CCI

Interpretation :- During my training and research I have found Pepsi

distributors are not satisfied like Coke distributors. During my four

month’s research two distributors had quit to company due to some mis-

understanding.

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Chapter 7: Market survey

7.0 Research methodology

7.1 Dealer survey

7.2 Limitations of the research

RESEARCH METHODOLOGY:

All the findings and conclusion obtained on the survey done in the

working area. With the limit, I tried my best to select the sample

representative of the whole group. During my job training I

maintained different routes during my dealer survey. I have

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[LUMBINI BEVERAGE PVT. LTD] collected data from the Depot of Patna under the

organization itself.

Data-sources

Retailers/Dealers (Cold drinks stalls, Ice stalls, Hotels, Restaurants

Sweet shop, Pan Shop, General Stores, Telephone Booths etc.)

Depot internal Company’s Records etc.

Research - approaches

Survey

Research - instrument:

Interview Schedule

Sampling - plan :

Sampling unit Distributor Retailer

Sampling size 02 250

Sampling procedure :

Census survey

Contact method

Personal interview

Secondary Data Collection :

The secondary data was collected on the basis of organizational

files, official bulletins and records, official journals, published data

in the annual general report and through various preserved

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[LUMBINI BEVERAGE PVT. LTD] information in the data base at the Pepsi sites e.g.

www.pepsico.com, www.pepsizone.com etc.

Primary Data Collection:

All the dealers/ retailers were personally visited and interviewed.

There was a format for collecting the details of the dealers. The

format was filled by taking the information from the dealer of by

monitoring the shops.

DEALER-SURVEY

Dealer-survey, as the word indicates, is the survey of every dealer

of soft drinks in the area. For our practical purpose, the dealer not

only includes the authorized dealers, but it also includes all the

retailers-big or small grocery shops, stationery, restaurants, beetles

shop etc., besides these, the various exclusive stalls and sales of

pantry cars are also included in it. In a nutshell, by dealer survey, I

mean who is dealing with the soft drink in someway or the other in

large or small quantity directly or indirectly.

Thus, my study includes all such dealers, which includes

following aspects:

No of routes covered by Depot

Crate strength

Per day sale

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[LUMBINI BEVERAGE PVT. LTD] Chilling ad

Advertising

Nature of outlet

Schemes of Pay-off

I had to visit each and every outlet and personally interview them.

In order to know the market share of Pepsi and its competitors, I

have conducted a survey ap Patna and its surroundings area. By the

help of survey, I can find out the reason behind non-availability of

Pepsi in the specified area.

The knowledge of case-stock indicates our “case-in-trade” and that

of competitors. This will indicate our “case-velocity”, which will

help to plan our bottle as whether our distribution is effective or

not. If my case-stock is low then I may decide for a “case stocking

campaign”. Feedback from market place regarding servicing of

dealers will help us to improve our service in the lacked areas.

Therefore, appropriate marketing strategy can be worked out

depending upon the findings. Some more uses of Dealer-Survey:

Depot-effectiveness

The Survey can improve the distribution network in these ways:

Immediate activation of non-buyers

Improve the dealer coverage

Increase the realignment of routes

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[LUMBINI BEVERAGE PVT. LTD] Better control through route card

They should visit the counter on the daily basis including the

remote places.

Salesman should visit the counter on likely basis.

Market knowledge:

Dealer-Survey gives the total profit of the market by following:

Location of dealers

The type of dealer

No of dealers who keep Pepsi, Coca-Cola and comparing the

stock,

The marketing inputs with respect to

Advertising

VISI Cooler

Servicing

Training group for future executives:

Good investigators from these surveys can be recruited to take up

future jobs. These people will be ideally suitable, as they would

know the market thoroughly.

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LIMITATIONS OF THE RESEARCH

It was not possible to thoroughly understand the different

marketing aspects of soft drinks in a span of two months.

The survey was conducted in the peak season when the sale was

too high, by this I cannot get the appropriate result.

Money- as no stipend was given; it was difficult to cover a wide

area.

All the work was limited in Patna area, so the findings should not

be generalized. The finding of survey will be strictly based on the

response of consumers, retailers/dealers, since it is difficult to

ascertain the authenticity of their statement.

Chapter 8: Conclusion & Suggestion

Conclusion

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[LUMBINI BEVERAGE PVT. LTD] Suggestion

CONCLUSION

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[LUMBINI BEVERAGE PVT. LTD] (1) The whole analysis shows that are only two companies dominating

in the soft drinks market - Pepsi- Cola & Coca - Cola. There is

neck-to-neck competition between these two companies.

(2) Coke has invested more in the market. Distribution of - VISI

Coolers and display of Glow Signs board is far more than Pepsi.

So, more investment is needed to break the brand establishment of

Thums Up and Sprite.

(3) In all the areas in Patna, almost all the retailers are not satisfied

with the distribution network of the Pepsi products.

(4) Most of the retailers want glow signboard chilling equipments,

which they are asking from long time.

(5) In Cola segment, Thums-up and in lime segment, Sprite is the

main competitor of Pepsi.

(6) Most of the consumers don’t like the taste of Pepsi due to its

sweetness and low fizz.

(7) All the products of Pepsi like 7 up & Slice are not provided when

the retailers demand it.

SUGGESTIONS

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[LUMBINI BEVERAGE PVT. LTD] (1) Pepsi should come out with an advertisement, which can block the

customers’ mind and can change the customer’s perception about

the product.

(2) Pepsi is sweet and low fizz soft drink that everybody knows, so

lots of people do not like, therefore to catch the customers, Pepsi

should come with more fizz like Thums-up.

(3) Executives should take the feedback from the service of the

salesman and the distributors.

(4) Salesman should have better interaction with the retailers which

results in by company from time to time.

(5) The criteria to provide Glow Signboard, Flax board, VISI

Cooler, and OYC should be changed and a separate department

should handle this.

(6) All the Pepsi products should be provided at required level to

snatch the competitor’s market e.g. 7 up for Sprite, Mirinda for

Fanta and Slice for Mazza which is dominating the market at

present.

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ANNEXURE

Glossary of Terms

Questionnaire

Bibliography

GLOSSARY OF THE TERMS

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FOBO - Franchise Owned Bottling Operation.

COBO - Company Owned Bottling Operation.

FMCG - Fast Moving Consumer Goods.

MNCs - Multinational Companies

MMM - Master of Marketing Management.

GOD - Glass on deposit

RBG - Return on bottle glass.

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[LUMBINI BEVERAGE PVT. LTD] QUESTIONNAIRE

Name of the

outlet: ...........................................................................................

Address: ....................................................................................................

........

1. Q. Which brand of soft drinks you deal in?

(a) Pepsi-Cola (b) Coca-Cola

(c) Both (d) Other

2. Q. Which brand of cola provides you better facility?

(a) Pepsi-Cola (b) Coca-Cola

(c) Both

3. Q. How many crates of Pepsi-Cola & Coca-Cola you sell/day?

(a) 0-1 crates (b) 1-2 crates

(c) 2-3 crates (d) 3 & above

4. Q. Which company’s signage you have in your outlet?

(a) Pepsi (b) Coca-Cola

(c) Both (d) No signage

5. Q. Which type of Signage in your outlet?

(a) Flex-Board (b) Dealer Board

(c) Glow Sign Board (d) Both

6. Q. Which company’s Visi - cooler & Oye you have in your

outlet?

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[LUMBINI BEVERAGE PVT. LTD] (a) Pepsi-Cola (b) Coca-Cola

(c) Both (d) Own

7. Q. In your opinion which medium is more effective for the sales

advertisement?

(a) Television (b) Magazines/Newspapers

(c) Display (d) Wall paintings/Hoardings

8. Q. Do you think aggressive advertising further help you it

increase the sales volume of Cola?

(a) Yes (b) No

9. Q. What kind of promotional activities do you like most?

(a) Free bottle scheme (b) Prize

(c) Discount Crates (d) Other ............

10. Q. Your recommendation for further sales improvement in your

locality?

..........................................................................................................

11. Q. Give me two suggestions for betterment of Pepsi-Cola?

(a)....................................................................................

(b)....................................................................................

Thanking you

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[LUMBINI BEVERAGE PVT. LTD] BIBLIOGRAPHY:

Prof. A.K. Basu (Faculty Guide)

Mr. Arun Kr. Singh (TDM)

Mr. Binay Kr. (DEPT TDM)

Mr. Banwari Shukala (CE)

Marketing management (Phillip Kotler)

Marketing Management (DEP. APP. ECO. & COM)

Research Methodology (C.R. Kothari)

Research Methodology (A.K. Singh)

Business Research Methodology (DEP. APP. ECO. & COM)

WEBSITES:

www.pepsico.com

www.pepsizone.com

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http://www.pepsizone.com/

http://www.pepsico.com/

[LUMBINI BEVERAGE PVT. LTD] www.cocacola.com

www.amul.com

www.parle.com

www.fao.com

www.notjustsurveys.com

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http://www.fao.com/

http://www.parle.com/

http://www.amul.com/

http://www.cocacola.com/

Pepsi Project

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