A

PROJECT REPORT +++++++++++++++

AS A PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SESSION : 2005- 2007

SUBMITTED BY SUBMITTED TO:Agam Shanti Dubey Mr. Rakesh SinghMBA-III Semester Faculty of MBARoll No: 0517270004

Lloyd Institute of Management & Technology, Knowledge Park-2,

Greater Noida

TABLE OF CONTENTS

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

1. COMPANY PROFILE

SWOT ANALYSIS OF COMPANY

MARKETING STRATEGY OF THE COMPANY

2. INTRODUCTION OF PROJECT

RESEARCH OBJECTIVE

3. RESEARCH METHODOLOGY

4. DATA ANALYSIS & FINDINGS

5. LIMITATIONS

6. RECOMMENDATIONS

7. CONCLUSIONS

8. ANNEXURE

QUESTIONNAIRE

9. BIBLIOGRAPHY

ACKNOWLEDGEMENTACKNOWLEDGEMENT

First of all. I thank almighty God for his goodness and

lovingness. I thank him because he has given me a beautiful and

wonderful chance and time, to express my sincere gratitude to all

faculty members of Lloyd Institute of Management & Technology,

thank to God because he has been helping me by giving good

teachers and friends.

Now I would like to thanks sincerely and grateful to my

revered guide Mr. Rakesh Singh (Faculty-MBA) who is gem of

my college and helped me in many ways in completion of this

project.

This project is the outcome of the great deal of co-This project is the outcome of the great deal of co-

operation of the retailers and consumers. I am very grateful tooperation of the retailers and consumers. I am very grateful to

Mr. Manmohan Mr. Manmohan (TDM Ghaziabad Region) (TDM Ghaziabad Region) under whom I startedunder whom I started

my summer training when he was ADC (Area Development Co-my summer training when he was ADC (Area Development Co-

ordinator) of the Ghaziabad Depot (Varun Beverages Ltd.,ordinator) of the Ghaziabad Depot (Varun Beverages Ltd.,

Ghaziabad) and Ghaziabad) and Mr. Vikas Gautam (Sr. Customer Executive)Mr. Vikas Gautam (Sr. Customer Executive)

and Mr. Pankaj Sharma (Customer Executive) and Mr. Pankaj Sharma (Customer Executive) for their friendlyfor their friendly

support as well as guidance. support as well as guidance.

AGAM SHANTI DUBEY MBA-III MBA-III SemesterSemester

EXECUTIVE - SUMMARY

This project was undertaken during the summer Training. A great deal of

effort has been put in preparing the questionnaire, in order to understand the

market better {Ghaziabad}.

Objectives: -

1. Extent to which merchandising assets are being used by the retailers

in promoting the brands.

2. Market demand of Pepsi vis-à-vis Coca Cola and Thums up.

3. Market demand of Mirinda-O vis-à-vis Fanta

4. Market demand of Mirinda-L vis-à-vis Limca, Mountain dew, Sprite

and 7up

5. Market demand of Slice vis-à-vis Maaza.

6. Market comparison of all the available brands of the soft drinks in the

market.

7. Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its

brands.

A BRIEF DESCRIPTION OF THE FINDINGS:

1. Extent to which merchandising assets are being used by the

retailers in promoting the brands: -

Retailer who are having DPS Boards / GSB and other display material like

stands, posters etc. were selected. Display material on the retailers shop was

given rank between 1, 2 and 3 according to their visibility. If the DPS

Boards / GSB and other display material were found visible at first sight

then they have been ranked '1st', if they were found visible at second sight

then they have been ranked '2nd' otherwise '3rd'.In the similar fashion ranks

were allotted to the refrigerators in the retailers shop.

While entering each shop it was taken care that the display materials are

properly ranked according to there visibility and incase of confusion,

opinion of the consumers were taken. Those shops with GSB’s were visited

during the evening in order to see there visibility. In these cases some

glaring facts were found. (Areas which were looking like monopoly markets

of Coca-Cola because of its Red-color during the day had altogether a

different look in the evening. They turned into Pepsi monopoly during the

evening because of the GSB's. Researcher have also tried to find out what

are the difficulties retailers are facing on using these brands up to 100% of

their strength.

2. Market demand of each of Pepsi’s product vis-à-vis to their

competitor flavours in Coca-Cola's artillery: -

For this, retailers were asked about the market demand of the different

brands and they have been asked to rank the brands with respect to their

competitive flavors. In this also some interesting facts came out like no

lemon brand exists in front of Pepsi. Our Mountain dew, which we were

thinking that it will be competing with Limca, actually it is grabbing the

Coca-Cola's Sprite’s market and Pepsi’s, 7up's market. In case of

Mirinda (O) and Coca-Cola's Fanta, Mirinda’s market is going up day by

day.

In case of mango drinks Slice even after entering the market so late has been

able to quickly pick up with Maaza. From the day Tetra Slice has entered

the market it has captured the market of Frooti.

In case of Aquafina, Coca-Cola's Kinley stands nowhere but brands which

are competing with kit are Paras, Bisleri, and Kingfisher.

3. Market comparison of all the available pickings of the soft drinks in

the market: -

In the market this study is done to find out that on which packing,

company should concentrate more. From the day company has introduced its

200ml packs, Pepsi is more economical for the lower income grade

consumers like Riksha-pullars and others.

4. Brands/ Pack availability of Coca-cola and its brands vis-à-vis Pepsi

and its brands: -

For this study, retailers were asked that how many bottles they are having in

their fridge and how many of them are of the brand whose fridge they are

having and about the capacity of their fridge. In spite of these findings

Researcher have worked on some other things like retailers expectations

from the company. He tried to find out how the company can increase the

sales. In the answer to this some funny recommendations came up (some

consumers recommended that Pepsi should change the percentage of the

sweetening content of its cola drinks).

About RKJ Group

Welcome to our Group website, designed to open up our

business and inform you about RKJ Group. With the rapid

advancement of technology, the Internet is the most

efficient way to give you up to date and easily accessible information. We

hope you find this website a useful and effective way of learning more about

RKJ Group.

About us:

It can be said with absolute certainty that the RKJ Group has carved out a

special niche for itself. Our services touch different aspects of commercial

and civilian domains like those of Bottling, Food Chain and Education.

Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to

expertise and leadership in the fields of education, food and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi

Foods Limited to manufacture and market Pepsi brand of beverages in

geographically pre-defined territories in which brand and technical support

was provided by the Principals viz., Pepsi Foods Limited. The

manufacturing facilities were restricted at Agra Plant only.

Varun Beverages Ltd. is the flagship company of the

group.

The group also became the first franchisee for Yum

Restaurants International [formerly PepsiCo

Restaurants (India) Private Limited] in India. It has exclusive franchise

rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants &

1 KFC Restaurant under its company.

We diversified into education by opening our first school in Gurgaon under

management of Delhi Public School Society. The schools of the group are

run under a Registered Trust namely Champa Devi Jaipuria Charitable Trust.

Companies are medium sized, professionally managed, unlisted and closely

held between Indian Promoters and foreign collaborators.

The group added another feather to its cap when the prestigious PepsiCo

“International Bottler of the Year” award was presented to Mr. R. K.

Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s

centennial year celebrations at Hawaii, USA. The award was presented by

Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr.

George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of

the Board & C.E.O., PepsiCo Inc. and Mr. Craig

Our Success

Weatherup, President of Pepsi Cola Company.

Production of innovative, high quality retail branded beverages combined

with world-class packaging.

Driven by a management team with a relentless focus on achieving superior

customer service, driving earnings improvement and increasing shareholder

value.

Our People

At RKJ we are creating an environment where our employees enjoy a

greater degree of empowerment - both individually and in their work teams.

Our employees are equipped with the necessary tools, training and

management backup for strong performance and accountability, as well as

with an environment of open communication and involvement.

Business Segments

The RKJ Group is divided into three business segments- Beverage,

Food and Education. It has a leading market position in each of its

three business segments. Our balanced portfolio produced a solid

business performance. Products and services which look to the

future ensure that we will be well-placed in growth markets.

FOOD

The last decade has been a period of dynamic growth for

non-alcoholic drinks and has witnessed completely new

segment of the food market in India taking shape. To

capitalize on the RKJ group’s significantly important

relationship with Pepsi Foods, it decided to venture into

Foods sector, which is second largest business for Pepsi all

over the world. Fast food is the most happening things

across the world. The group became the first franchisee for

Yum Restaurants International [formerly PepsiCo

Restaurants (India) Private Limited] in India. It has exclusive

franchise rights for Northern & Eastern India. Out of 56

operational Pizza Hut restaurants in the country 27

restaurants are owned and run by its company. These

restaurants are located at Defence Colony, Alaknanda, Vikas

Puri, Green Park, Karol Bagh, New Friends Colony,

Connaught Place, Basant Lok, Greater Kailash, Jaipur (2),

Agra, Noida (2), Faridabad (2), Chandigarh (2), Ludhiana,

Jallandhar, Amritsar, Gurgaon (3), Kushambi(Ghaziabd) and

Kolkatta (2).

All these restaurants are making good profits & are

dominating the market. The name of business entity is varun

International Private Limited.

Ice Creams under “Candia” brand

The group has its presence in the Ice Cream segment since 1991, when it

started manufacturing and marketing Ice Cream under the brand name of

“Gaylord” in the state of U.P. During 1996 it sold its brand to

Brooke Bond and started supplying Ice Cream to Hindustan

as their Ice Cream sourcing plant. After working for 10 years

in this field, during launched its own brand in technical and

marketing collaboration with Candia of France

EDUCATION

The R K J Group has been associated with

excellence in education. It strongly believes that

investment in quality care and education for

young minds is essential for the future growth and

development of our country. The group’s foray into the

school education is intended to provide exceptional

opportunities for the development of the academic abilities

of the students. The schools run by the group encourage

students to become creative, innovative and imaginative.

They have a wide range of co-curricular activities, which are

as important as the academic disciplines.

School life merges with a plethora of activities to suit every

schedule, talent and interest in the areas like indoor and

outdoor games, swimming, art and culture, music and

drama, Yoga and martial arts, community service, etc. The

school's approach to education has been designed to ensure

that the students realise their true potential and grow up to

become complete individuals and responsible citizens.

The group’s foray into pre-school education is in line with

educational projects of the group. “We see no competition

because pre-school education is a niche market. There is no

specialized way of teaching pre-schoolers here”, says

Jaipuria. The year 2001 witnessed the further spread of the

group’s portfolio with the opening of its first school at

Gurgaon under the management agreement with Delhi

Public School Society. To expand in the field of education it

opened its second school at Jaipur under the management of

same society.

The Group has entered into a join venture

partnership with Modern Montessori

International (MMI) Singapore, to open pre-school

educational institutions across the country. Forming a new

entity, Modern Montessori International (MMI) India in which

the Group will have 51 per cent equity stake, the company

invests Rs 200-crore investment in the Indian operations in

the next five years.

MMI India plans to open four schools by April 2004 and as

many as 14 schools by 2005. The company will be opening

its first school in Gurgaon. The long-term agenda includes

The R K J Group has been associated with excellence in

education. It strongly believes that investment in quality

care and education for young minds is essential for the

future growth and development of our country. The group’s

foray into the school education is intended to provide

exceptional opportunities for the development of the

academic abilities of the students. The schools run by the

group encourage students to become creative, innovative

and imaginative. They have a wide range of co-curricular

activities,

VARUN BEVERAGES LTD.

COMPANY PROFILE

Varun Beverages Ltd. is a FOBO – Franchisee Oriented Bottling

Operation of Pepsi, headed by Mr. Ravi jaipuria.

Year of establishment 1993

Corporate Office F-34, Sec-6 Noida (U.P.)

Manufacturing Facilities (a) Varun Beverages Ltd.

Surajpur plant, Greater Noida (U.P.)

(b) Agra Beverages Agra (U.P.)

(C) Varun beverages, Jaipur (Raj.)

Operating Are areas : Whole of east Delhi

Noida, Ghaziabad, Haridwar,

Agra, Aligarh, Mathura,

Faridabad, Gurgaon,

Ballabhgarh, Jaipur etc.

Production Capacity 1400 Bottles Per Minute.

(Surajpur Plant Greater Noida)

VARUN BEVERAGES LTD.

COMPANY PROFILE

Mr.. R.K. Jaipuria who heads Varun Beverages Ltd. and has been

adjudged Best Pepsi Bottler of the world for the current year. He was

presented with the Donaid M. Kondell Bottler of the year award, the

highest honour to any franchisee.

He is thoroughly experienced in setting-up and running Pepsi Cola

Bottling Plant in India. The past experience of the family in beverage

industry is since the sixties when it had the first franchise at Agra.

Family has in total 12 bottling plants in Indian and produces and

markets 40% of the Pepsi requirement in India. The plants are

located at Greater Noida, Jaipur, Delhi, Agra, Nagpur, Hyderabad,

Raipur, Vishakapatnam, Guntur, Bhopal and Cuttack. Group also has

got franchise for Kwality Walls Ice Cream from Brooke Bond Lipton

India Limited. As Franchisee for Kwality Walls Ice Cream from M/s

Brooke Bond Ltd

1.The group caters to the ice creams demand for the state of U.P…

The group owns state-of- art facilities to manufacture Ice Cream at

Agra. Recently Group has also signed a franchise agreement with

Tricon Rstaurants (India) Pvt. Ltd., to start a chain of restaurants in

northern India under the name of PIZZA HUT by opening 15

restaurants. The first four of its Restaurants are already operational at

(i) Ganpati Plaza, M.I. Road Jaipur, Rajasthan (ii) Defence Colony,

New Delhi (iii) Handicraft, Nagar Faterhabad Road, Agra and (iv)

Connaught Place, New Delhi and are making profits. One other

Restaurant at Sector-18 Noida (U.P.) will also be shortly opened for

public.

The Group companies are doing very well in terms of Profitability,

Growth, Market leadership and enjoy good credibility with its business

associated including Pepsi Foods Ltd., the companies enjoy

substantial sales-tax exemptions under the local laws leading to

additional profit margins.

The beverage industry has withessed a phenomenal growth over the

last four years necessitating capacity increase and building up to

commensurate infrastructure to meet the business growth, which is

accordingly matched.

COMPANY PROFILE

VISION OF THE COMPANY:

Satisfying the end consumer, and provide value to each penny he is

spending in buying cold drink.

MISSION OF THE COMPANY:

 To provide quality soft drink to the consumer or market.

PEPSI-COLA COMPANY, HEADQUARTERED IN

NEW YORK IS THE GLOBAL BEVERAGE DIVISION OF

PEPSICO. INC.

Pepsi-Cola was founded at the turn of the century by Caleb Bradham, a

New Bern, N.C. druggist who first formulated the beverage. Today,

Brand Pepsi and other Pepsi-Cola North America products – including

Diet Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands – account

for nearly one-third of total soft drink sales in the United States, a

consumer market totaling about $56 billion. Pepsi-Cola beverages are

available in about 170 countries.

Pepsi-Cola North America also makes and markets ready-to-drink iced

teas and coffees, respectively, via joint ventures with Lipton and

Starbucks.

PepsiCo. Inc. is among the most successful consumer products

company in the world, with 1998 revenues of over $22 billion and

151,000 employees. The company consists of:

Pepsi-Cola Company, the world's second-largest beverage company

Frito-Lay Company, the world's largest manufacturer and distributor of snack

chips

Tropicana Products, Inc., the world's largest marketer and producer of branded

juices

PepsiCo. Mission Statement:

PepsiCo's overall mission is to increase the value of our shareholder's

investment. We do this through sales growth, cost controls and wise

investment of resources. We believe our commercial success depends

upon offering quality and value to our consumers and customers;

providing products that are safe, wholesome, economically efficient

and environmentally sound; and providing a fair return to our investors

while adhering to the highest standards of integrity.

Environmental Commitment

Pepsico. Inc. serves consumers in two major businesses: beverages and

snack foods. The company consists of Pepsi-Cola Company, the

world’s second largest beverage company, Tropicana Products, Inc. the

world’s largest marketer and producer of branded juices and Frito-Lay

Company, the world’s largest manufacturer and distributor of snack

chips. Pepsico. brand names are among the best known and our

operations reach every corner of the world.

As a consumer products company, Pepsico. does not have the major

environmental problems of heavy industry. Our biggest environ-mental

challenge is packaging generated by our products. Packaging is

important to public health and a critical component of the distribu-tion

system that delivers products to consumers and commercial

establishments. To meet both consumer demand and safeguard the

environment, we recycle, reuse and reduce packaging wherever

possible. Each business is also committed to responsible use of

resources required in manufacturing our products.

Pepsico. is proud of our environmental record. Each of our divisions

and facilities is empowered to find solutions to its unique environ-

mental challenges. This report addresses the environmental prin-ciples

presented in our Code of Conduct and examines our progress.

CORPORATE OVERVIEW:

Pepsico. Inc. is among the most successful consumer products

company in the world, with 1999 revenues of over $20 billion and

116,000 employees. The company consists of: Frito-Lay Company, the

largest manufacturer and distributor of snack chips; Pepsi-Cola

Company, the second largest soft drink business and Tropicana

Products, the largest marketer and producer of branded juice. Pepsico.

brands are among the best known and most respected in the world and

are available in about 190 countries and territories.

Some of Pepsico.'s brand names are 100 years old, but the corporation

is relatively young. Pepsico. Inc. was founded in 1965 through the

merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998.

Pepsico.'s success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high integrity of

our people.

Our overriding objective is to increase the value of our shareholders'

investment through integrated operating, investing and financing

activities. Our strategy is to concentrate our resources on growing our

businesses, both through internal growth and carefully selected

acquisitions. Our strategy is continually fine-tuned to address the

opportunities and risks of the global marketplace. The corporation's

success reflects our continuing commitment to growth and a focus on

those businesses where we can drive our own growth and create

opportunities.

PEPSICO. HEADQUARTERS:

Pepsico. Inc. World Headquarters is located in New York City. The

seven-building headquarters complex was designed by Edward Durrell

Stone, one of America's foremost architects. The building occupies 10

acres of a 144-acre complex that includes the Donald M. Kendall

Sculpture Gardens, a world acclaimed sculpture collection in a garden

setting.

The collection of works is focused on major twentieth century art, and

features works by masters such as Auguste Rodin, Henri Laurens,

Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo

Pomodoro and Claes Oldenberg. The gardens were originally designed

by the world famous garden planner, Russell Page. The grounds are

open to the public, and a visitor's booth is in operation during the spring

and summer.

BEVERAGES

Pepsi-Cola Company:

Pepsico.'s beverage business was founded at the turn of the century by

Caleb Bradham, a New Bern, NC druggist who first formulated Pepsi-

Cola. Today consumers spend about $32 billion on Pepsi-Cola

beverages. Brand Pepsi and other Pepsi-Cola products - including Diet

Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands - account for

nearly one-third of total soft drink sales in the United States, a

consumer market totaling about $58 billion.

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

Today Lipton is the biggest selling ready-to-drink tea brand in the

United States.

Outside the United States, Pepsi-Cola Company's soft drink operations

include the business of Seven-Up International. Pepsi-Cola beverages

are available in about 160 countries.

Pepsi-Cola provides advertising, marketing, sales and promotional

support to Pepsi-Cola bottlers and food service customers. This

includes some of the world's best-loved and most recognized

advertising. New advertising and exciting promotions keep Pepsi-Cola

brands young.

The company manufactures and sells soft drink concentrate to Pepsi-

Cola bottlers. The company also provides fountain beverage products.

Pepsico. Products:

Pepsico. has hundreds of brands. These are some of the best known.

Pepsi-Cola Brands

Pepsi-Cola

Diet Pepsi

Mirinda

Mountain Dew

Lipton Teas (Partnership)

Aquafina Water

7 Up (utside USA)

Slice

Tropicana

INDUSTRY PROFILE (INDIA)

Pepsi, for once on the defensive, is getting lucky – the men in blue aren’t

just looking cute, they’re rocking.”

The glass will not crack this summer. Crates will not melt either, as coke and

Pepsi vow to keep them chilled and moving all the time. There’s frenzied

excitement at Pepsi. This year, believe analyst, will be different. After all,

soft drinks have hit the magical price point of Rs 5. And the two cola majors

see hords of sticky consumer looming large. The agenda before the two cola

giants is to expand the market, rather than indulge in a muddy street fight.

For years, soft drink rivals have been gnawing at each other, sneering at each

other’s claim and counter claim, comparing market shares, finding flaws in

the methodologies of retail audits – and making a noise about them,

whenever they are favorable. In this age old rivalry there was little for

consumers to cheer about.

They found it about as interesting as you’d find a neighborhood brawl.

But something changed a few months ago. In October last year coke slashed

price by an aggressive 15 to 25 %, forcing Pepsi to follow Suit. It becomes a

price war that gave consumers a reason to smile. It was not easy for either

player. They could do it only by packing efficiency into their operations:

cost cutting and restructuring to withstand price cuts.

Coke and Pepsi want to use their new pricing to drive growth, slurping up

new consumers and penetrating deeper into the existing market. The winner

will clearly be the one that gain initial advantage in the race and make no

mistake, the gain could well decide the fate of the brand over the long term,

but the two rivals believe that the fight over the new consumer base may

turn out fiercer.

Current situation is that the soft drinks have hit the magical price of Rs. 5;

agenda is to expand the market penetration deeper into the existing one.

KEY POINTSKEY POINTS

BASIS COKE PEPSI

1) Strategies used

2) Investment

3) Advertising

4) Brand Range

5) New Launch

Firstly, it reduced the price to Rs.5 for 200ml to attract new customer with rural market support by making it available at the price of Tea, Coffee etc.

Rs 1000 crore for capacity expansion and infrastructure.

Thanda Matlab Coca Cola

Paach matlab Chota Coke

Jo chaho ho jaaye coca cola enjoy- By Amir Khan as a Brand AMBAssador

Coca-Cola Thums-up Limca Fanta

Chota Coke at Rs 5

It followed that to catch new consumer and to increase availability of product to satisfy demand which finally will lead to have in-depth penetration in homes.

Rs 400 crore for capacity expansion and infrastructure.

Yeh Dil Maange More -By Sachin Teldulkar as a Brand AMBAssador

Pepsi Mirinda 7-up Mountain Dew

500 ml Pepsi ( Diet Pepsi)

Mountain Dew 2 liter PET Bottle

COMPANY PROFILE: -

VISION OF THE COMPANY

Satisfying the end consumer, and provide value to each penny he is spending

in buying cold drink.

MISSION OF THE COMPANY

To provide quality soft drink to the consumer or market.

PEPSICO AT A GLANCE

PepsiCo is a world leader in convenient foods and beverages, with revenues

of about $25 billion and over 142,000 employees. The company consists of

the snack businesses of Frito-Lay North America and Frito-Lay

International; the beverage businesses of Pepsi-Cola North America,

Gatorade/Tropicana North America and PepsiCo Beverages International;

and Quaker Foods North America, manufacturer and marketer of ready-to-

eat cereals and other food products. PepsiCo brands are available in nearly

200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation

is relatively young. PepsiCo was founded in 1965 through the merger of

Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo

merged with The Quaker Oats Company, including Gatorade, in 2001.

PepsiCo’s success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high integrity of our

people.

Our mission is to be the world's premier consumer products company

focused on convenience foods and beverages.  We seek to produce healthy

financial rewards to investors as we provide opportunities for growth and

enrichment to our employees, our business partners and the communities in

which we operate.  And in everything we do, we strive for honesty, fairness

and integrity.

SHAREHOLDERS

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock

Exchange in the United States. The company is also listed on the

Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has

consistently paid cash dividends since the corporation was founded.

CORPORATE CITIZENSHIP

PepsiCo believes that as a corporate citizen, it has a responsibility to

contribute to the quality of life in our communities. This philosophy is put

into action through support of social agencies, projects and programs. The

scope of this support is extensive – ranging from sponsorship of local

programs and support of employee volunteer activities, to contributions of

time, talent and funds to programs of national impact. Each division is

responsible for its own giving program. Corporate giving is focused on

giving where PepsiCo employees volunteer.

PEPSICO HEADQUARTERS

PepsiCo World Headquarters is located in Purchase, New York,

approximately 45 minutes from New York City. Edward Durrell Stone, one

of America’s foremost architects, designed the seven building headquarters

complex. The building occupies 10 acres of a 144-acre complex that

includes the Donald M. Kendall Sculpture Gardens, a world acclaimed

sculpture collection in a garden setting.

Masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander

Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg focus

the collection of works on major twentieth century art, and features works.

The gardens were originally designed by the world famous garden planner,

Russell Page, and have been extended by François Goffinet. The grounds are

open to the public, and a visitor's booth is in operation during the spring and

summer.

GLOBAL PARTNERS

Frito-Lay North America and Frito-Lay International

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

events took place. In San Antonio, Texas, Elmer Doolin bought the recipe

for an unknown food product – a corn chip – and started an entirely new

industry. The product was Fritos brand corn chips, and his firm became the

Frito Company.

That same year in Nashville, Tennessee, Herman W. Lay started his own

business distributing potato chips. Mr. Lay later bought the company that

supplied him with product and changed its name to H.W. Lay Company.

The Frito Company and H.W. Lay Company merged in 1961 to become

Frito-Lay, Inc.

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

industry.

PepsiCo began its international snack food operations in 1966. Today, with

operations in more than 40 countries, it is the leading multinational snack

chip company, accounting for more than one quarter of international retail

snack chip sales. Products are available in some 120 countries. Frito-Lay

North America includes Canada and the United States. Major Frito-Lay

International markets include Australia, Brazil, Mexico, the Netherlands,

South Africa, the United Kingdom and Spain.

Often Frito-Lay products are known by local names. These names include

Matutano in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil,

Walkers in the United Kingdom and others. The company markets Frito-Lay

brands on a global level, and introduces unique products for local tastes.

Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack

chips. Other major brands include Cheetos cheese flavored snacks, Tostitos

tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips

multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies,

nuts and crackers.

Pepsi-Cola North America and PepsiCo Beverages International

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

Pepsi-Cola, founded PepsiCo’s beverage business at the turn of the century.

Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand

Pepsi and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One,

Mountain Dew, Slice, Sierra Mist and Mug brands – account for nearly one-

third of total soft drink sales in the United States, a consumer market totaling

about $60 billion.

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

Aquafina bottled water, Fruitworks and All Sport.

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

Lipton is the biggest selling ready-to-drink tea brand in the United States.

Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a

partnership with Starbucks.

In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets

an innovative line of beverages including fruit blends, energy drinks, dairy-

based drinks, exotic teas and other beverages with herbal ingredients.Outside

the United States, Pepsi-Cola soft drink operations include the business of

Seven-Up International. Pepsi-Cola beverages are available in about 160

countries and territories.

Pepsi-Cola began selling its products internationally in 1934 with its

operations in Canada. Operations grew rapidly beginning in the 1950s. In

addition to brands marketed in the United States, major products include

Mirinda and Pepsi Max. Pepsi-Cola North America includes the United

States and Canada. Key international markets include Argentina, Brazil,

China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the

United Kingdom. PepsiCo Beverages International also produces, sells and

distributes Gatorade sports drinks as well as Tropicana and other juices

internationally.

Pepsi-Cola provides advertising, marketing, sales and promotional support

to Pepsi-Cola bottlers and food service customers. This includes some of the

world's best-loved and most-recognized advertising. New advertising and

exciting promotions keep Pepsi-Cola brands young.

The company manufactures and sells soft drink concentrate to Pepsi-Cola

bottlers. The company also provides fountain beverage products.

Gatorade/Tropicana North America

Anthony Rossi as a Florida fruit packaging business founded Tropicana in

1947. The company entered the concentrate orange juice business in 1949,

registering Tropicana as a trademark.In 1954 Rossi pioneered a

pasteurization process for orange juice. For the first time, consumers could

enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice

in a ready-to-serve package. The juice, Tropicana Pure Premium, became the

company’s flagship product.In 1957 the name of the company was changed

to Tropicana Products, headquartered in Bradenton, Florida. The company

went public in 1957, was purchased by Beatrice Foods Co. in 1978, acquired

by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company

Ltd. in 1988. Seagram purchased the Dole global juice business in 1995.

PepsiCo acquired Tropicana, including the Dole juice business, in August

1998.

Today the Tropicana brand is available in 63 countries. Principal brands in

North America are Tropicana Pure Premium, Tropicana Season’s Best, Dole

Juices and Tropicana Twister. Internationally, principal brands include

Tropicana Pure Premium and Dole juices along with Frui'Vita, Loóza and

Copella. Tropicana Pure Premium is the third largest brand of all food

products sold in grocery stores in the United States.Gatorade sports drinks

were acquired by the Quaker Oats Company in 1983 and became a part of

PepsiCo with the merger in 2001.

QUAKER FOODS NORTH AMERICA

The Quaker Oats Company was formed in 1901 when several American

pioneers in oat milling came together to incorporate. In Ravenna, Ohio,

Henry D. Seymour and William Heston had established the Quaker Mill

Company and registered the now famous trademark. Seymour wanted his

product to be a symbol of honesty, integrity and strength. The figures of a

man in Quaker clothes became the first registered trademark for breakfast

cereal and remain the hallmark for Quaker Oats today. In Cedar Rapids,

Iowa, John Stuart and his son, Robert, and their partner, George Douglas,

operated the largest cereal mill of the time. Ferdinand Schumacher, known

as "The Oatmeal King," had founded German Mills American Oatmeal

Company in 1856.

Combining The Quaker Mill Company with the Stuart and Schumacher

businesses brought together the top oats milling expertise in the country as

The Quaker Oats Company. The first major acquisition of the company was

Aunt Jemina Mills Company in 1926, which is today the leading

manufacturer of pancake mixes and syrup.

In 1986, The Quaker Oats Company acquired the Golden Grain Company,

producers of Rice-A-Roni.

PepsiCo merged with The Quaker Oats Company in 2001. Its products still

have the eminence of wholesome, good-for-you food, as envisioned by the

company over a century ago.

CAREER OPPORTUNITIES AT

PEPSICO. WORLDWIDE HEADQUARTERS:

Pepsico., Inc. is a worldwide leader in vast and growing markets: beverages,

snack foods and juices. Our company's brands, which include Pepsi-Cola,

Frito-Lay and Tropicana, are among the best known and most successful in

the world.

Our continued growth has created outstanding career opportunities for

talented professionals in a variety of specialized fields at our corporate world

headquarters, located in NEW YORK. We are always looking for good

people in the areas of:

Information Technology

Treasury

Tax

Human Resources

Law

Accounting

Public Affairs

Audit all successful applicants share a commitment to Pepsico.'s goals

and an ability to thrive in a fast-paced, results-oriented environment.

In exchange, we offer a highly competitive compensation and benefits

package.

SWOT ANALYSIS

STRENGTHS: Company belongs to the FMCG sector so the demand will never die.

A large and strong distribution network. (In comparison to the other

competitive brand Pepsi is having better reach to the market.)

Professional and dedicated manpower. (Starting from the higher-level

management to the sales-man Pepsi’s employees is having great

degree of dedication and professional attitude towards selling the

products. On the other hand companies’ operational staff always try

their maximum strength to meet the demand and utilize the recourses

to maximum.)

More emphasis on market penetration (Companies efforts of

providing the Pepsi and other products to the customer’s doorstep are

working vis-à-vis wherever the transportation is not possible dealers

are appointed).

In comparison to Coca-Cola’s red color, which is brighter and have

more visibility Pepsi’s blue color provide sense of relax ness in the

bright sunny day.

In the rural areas and outskirts of the city where there is maximum

population is illiterate, Pepsi is having an edge. (As compared to

Coca-Cola, pronouncing Pepsi is lot more easy reason for more

demand of the Pepsi and its brands.)

More popularity among the kids and female youth. (Because of the

sweetened taste Pepsi and its other brands attracts the kids and female

more. Mirinda is found more popular among kids.).

Retain ability of the T.V. advertisements of Pepsi is far more in

comparison to Coca-Cola. (Pepsi’s T.V. advertisement in which

Sachin Tendulkar whistles at the end has maximum retain ability.

Other than this world cup 2003 advertisement campaign that

comprises of Sachin Tendulkar, Shane Warne and Carl Hooper,

advertisement campaign which compraises of Amitabh Bachhan,

Karina Kapoor and Adnan Sami and latest advertisements of Pepsi

and Mountain Dew (Do the Dew) are very famous. On the other hand

Coca-Cola’s advertisement campaign of “thanda matlab Coca-Cola”

and Amir Khan’s five rupees ad have the maximum retainability.

WEAKNESS:

Coca-Cola’s red color has more visibility than Pepsi’s blue color.

(Because of the bright color of Coca-Cola it is more visible even from

the distance as compared to Pepsi)

Pepsi’s sinages are far more scattered as compared to Coca-Cola.

(Because of this at some places it looks that the market is captured by

Coca-Cola.).

Low plant capacity because of which company is not able to meet its

demand during the peak season (Varun Beverages India Ltd., Pepsi’s

Greater Noida plant has one continuous assembly line for preparing

tetra and four continuous assembly lines’ which are filling around

15,000 bottle/day, which is insufficient to complete the demand

during the peak seasons.).

Lesser plant utilization during the off-peak seasons (During the winter

season as the demand is very low, plant and resource utilization goes

down.)

Lack of automaton in the administrative department in the plant,

which results in wastage of time and sometimes in resources also.

OPPORTUNITIES:

 Demand is more than the production. (Because of the heat the

demand of the soft drink raised drastically which is the good

opportunity for the company a the rival brands are also finding it

difficult to complete the demand. Therefore Pepsico.. has to increase

the production.)

In the rural areas Pepsico.’s distribution network is far stronger vis-à-

vis to any of the competitor. Therefore it is viable to make it more

stronger, as this can restrict the entry of the other brands in the rural

market.

Kids demand for the Mirinda more as compared to any other orange

flavor soft drink brand.

With the launch of slice tetra Pepsico. has entered in to one more

segment o soft drink beverages, which was more or less captured by

the “Frooti” till now.

THREATS:

Not able to meet the market demand during the peak season. (As the

plant capacity is very low the company is not able to meet the existing

demand during the peak seasons).

There is lot of complaints are coming up about the impurities or

leakage of gas or leakage of carbonated water. (Within the last 30

days I met around 50 such complaints because of which retailers were

very angry with the company).

There is no proper policy of distributing the merchandising assets of

the company to the retailers. (Many of the retailers have so many

things though their sales are low but few of them don’t have anything

inspite of large sales.).

MARKETING STRATEGIES

1) Pepsi sales club:

This club is for the retailers. In this approach retailers are given some points

once in a month depending upon how they are using the display material

provided by the company to them. This material consists of Fridges, DPS

Boards, Glow Sign Boards, Display Bottles (500ml. 1lt. 2lt, Commodity

Packs, Stands, Posters etc. Depending upon these points retailers are

rewarded by certain gifts from the company.

The retailers are participating in these schemes curiously. But few of the

retailers found furious and angry because they had lost the points because of

miscommunication or lack of guidance. Therefore they need some kind of

guidance from the company. It would be a better idea that our salesman who

are distributing the beverages to the retailers can be equipped by the

appropriate training so that they can guide the retailers about how to use

their display material to 100% of their strength and able to tell about the new

schemes convincingly.

2) Schemes:

Pepsi Beverages India comes out with the schemes on their different

products many times in a year. Most of these schemes are made to benefit

the retailers. Some of the schemes are as follows:

1 bottle of 2lt. free with one 2lt bottle pet.

3 bottles of 500ml free with one 500ml bottle pet

4 tetra packets of tetra slice mango free with one tetra 24 pieces of

slice mango.

1bottles of Aquafina free with one pet of Aquafina.

These schemes keep on changing depending upon the stock. Beverages

companies are giving these schemes despite of acute shortage of soft drink

in every segment to meet the competition, to make sure the availability their

brands and sometimes to satisfy and benefit the retailers and the end

consumers.

3) Advertising:

Through the consumers survey it has been proved that the T.V. commercials

and sinages affect the consumer buying behaviour by approximately 70%.

May be only Pepsico. is investing huge finances in the T.V. commercials

and other sinages, big names of Indian film industries and sports hero’s are

being proposed to become the brand promoters and brand ambassadors.

Sachin Tendulkar, Amitabh Bachhan, Karina Kapoor and more are being

offered huge amount for carrying out the promotions. Pepsi’s T.V.

advertisement in which Sachin Tendulkar whistles at the end has maximum

recall value. Other than this world cup 2003 advertisement campaign that

comprises of Sachin Tendulkar, Shane Warne and Carl Hooper,

advertisement campaign which comprises of Amitabh Bachhan, Karina

Kapoor and Adnan Sami and latest advertisements of Pepsi and Mountain

Dew (Do the Dew) are very famous. Few of the areas through which

advertising is being done are as follows:

Television commercials

Posters

DPS boards

Glow Sign boards

Date calendars

Food and fizz

Space clube

4) Promotion through restaurants and cinema hall

holdings:

Pepsi co. is tying up with different chains of restaurants and fast food

centers like Pizza Hut to promote the Pepsi and its other brands like

Mirinda, Mountain Dew etc. these restaurants are authorized to keep and

use the merchandising assets of Pepsi. Usually these kinds of restaurants

and fast food chains are in contract with the Pepsi Co., so that they

cannot promote any other brand.

5) Merchandising assets:

Pepsi Co. also try to promote their brands by providing their retailers and

dealers some display items. Some of such items are as follows:

1. Fridges

2. Pepsi/mountain due stands

3. Display bottles

4. Posters 

Pepsi Co. provide the above things to the retailers to use them in promoting

companies brands and products, and provide refrigerators to the retailers in

the hope that these retailers only use these assets in promoting the Pepsi’s

products and they will chill the Pepsi’s products so that its products will

always be available to the end consumers. But it is not true in most of the

cases. Retailers usually use the merchandising asset of one company

in such a way that it benefits another company. Sometime they do it

unknowingly, sometimes they do it knowingly and sometimes because of the

deficiencies of the company itself. These deficiencies are as follows: -

1. Irregularity of the salesman to the retailers shop.

2. Shortage of the different products and different packages.

3. Sometimes because of the rude behavior of the salesman.

6) Strengthen distribution network and promotions

through word of mouth through sales man:

Unlike the rival brand Coca-Cola, Pepsi Co. Basically depends upon its sales

man for promoting and launching the new as well as old brands because

instead of doing the business through dealer’s network like Coca-Cola,

Pepsico. believes in making and maintaining relations with retailers directly.

Therefore salesman is the very important part of Pepsico. marketing

strategy.

INTRODUCTION

Every year with the start of summers in India the real race to quench the

thirst of the consumers begins in the soft drink beverages industry. Every

year millions participate in it, either in the hot sun or sitting at home

watching their, sipping the soft drink and watching the newly launched

advertisements.

Soft drinks manufacturers in India face a number of major problems, such as

distribution difficulties. Access to the 500,000 villages is limited due to the

poor road network. Inconsistent tax policies, the prevalence of duplicates,

hefty packaging costs and India's seasonal nature are other factors holding

back growth.

During New Year the two of the largest soft drink giants in India Pepsi and

Coca-Cola start experiments with products, packages, flavors and prices in

an effort to boost their market share. For this the biggies make huge

investments in terms of advertising, setting up new and more productive and

modernized plants, improving the distribution network to get better reach to

the end consumer.

One of the areas where these companies are making huge investments is

merchandising. This is the area where companies try to get the maximum

display in the consumer’s eyes at the retailers shop through refrigerators,

glow signboards, DPS boards, stands, posters, display bottles etc. But the

question arises that whether these retailers are making the proper use of

these materials, which the company is providing them. Are they using these

materials to their optimum level in promoting the product of the company

that has provided them the merchandising material? Are the companies

getting the optimum results of the investments they are making in this area?

Researcher have tried to find out answers to the above questions in his

research work, which researcher has conducted during his summer training

during the partial fulfillment of his MBA programme. The objective of

report is as follows: -

RESEARCH OBJECTIVE

To find out to which extent merchandising assets are being used by

the retailers in promoting the products of the Pepsi.

To find out market demand of Pepsi vis-à-vis Coca Cola and Thums

up.

To find out market demand of Mirinda-O vis-à-vis Fanta

To find out market demand of Mirinda-L vis-à-vis Limca, Mountain

dew, Sprite and 7up.

To find out market demand of Slice vis-à-vis Maaza.

To find out market comparison of all the available brands of the soft

drinks in the market.

Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its

brands.

RESEARCH METHODOLOGY

Researcher began his survey with route riding, i.e. travelling along with the

sales persons on his daily trip to service the retailers. Researcher asked the

retailers about their uses of Pepsi merchandises and try to Asses the market

share the Pepsi’s different brands. This is very important point as it gave me

an inside view of the whole setup and further on during the planning of any

of the promotions. Researcher was aware of the limitations and strengths of

the environment he would be working in. The various methods and

principles adopted are listed below:

Research Plan:

Date sources: sources of information are as follows:

(1) Primary sources

Who’s the primary source??

Consumers are the primary source.

(2) Secondary sources – Researcher collected secondary information from

magazines.

Research Approach:

Researcher followed one approach to collect the information

(1) Survey – Researcher contacted the retailers in the market place to gather

the relevant information.

ROOT RIDING

Sector- 23

Wall City

Pratap Vihar

Gandhi Nagar

Sanjay Nagar

Vijay Nagar

Raj Nagar

Maliwara

Kavi Nagar

Railway Station

Highway IIHighway I Bus Stand Patel Nagar Lohiya Nagar

Dealer RouteNandgramTurab Nagar

Shastri Nagar Govindpuram

Dadri RoadG.T Road

Number of Retailers contacted – 400 Retailers.

Research instrument:

Researcher used questionnaire as his instrument for conducting the survey.

Sampling Plan

(1) Sampling unit – Retailers

(2) Sampling procedure- Simple Random Sampling Procedure.

Contact Method

Researcher personally contacted the retailers.

DATA ANALYSIS & FINDINGS

FFIGUREIGURE 1 1

Out of Coca-Cola and Pepsi Beverages India Limited whose GSB do you have ?

PBI11%

Coca-Cola14%

Both 5%

None70%

PBI

Coca-Cola

Both

None

Out of the sample size which has been covered only 11 % of the shops

had Pepsi’s GSB’s vis a vis to 14 % of Coca-Cola’s GSB’s.

14 % of the sample size had the GSB’s of both the major players of

the soft drink industry.

70% of the sample size didn’t have any of the GSB’s displayed.

FFIGUREIGURE 2 2

Ranking according to visibility - Pepsi ?

72%

14%

14%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

49%

38%

13%

Rank 1

Rank 2

Rank 3

72% of the shops having Pepsi GSB’s got the 1st rank according to

their visibility status on the other hand only 14% of the retailers got

the rank 2nd and 3rd each. This shows that retailers who got the GSB

as display material from the company are using them satisfyingly.

49% of the shops having Coca-Cola GSB’s got the rank 1st according

to their visibility status on the other hand 38% of the retailers got the

rank 2nd and only 13% of the retailers got the rank 3rd. This shows

that in comparison to Coca-Cola, Pepsico.’s GSB are being used in

more proper way.

FFIGUREIGURE 3 3

Out of Coca-Cola and Pepsi Beverages India Limited whose DPS Board do you have ?

PBI27%

Coca-Cola8%

Both 3%

None62%

PBI

Coca-Cola

Both

None

Out of the sample size which has been covered 27 % of the shops had

Pepsi’s DPS Boards vis -a -vis to 8 % of Coca-Cola’s DPS’s.

3 % of the sample size had the DPS Boards of both the major players

of the soft drink industry.

62% of the sample size didn’t have any of the DPS Boards displayed.

FFIGUREIGURE 4 4

Ranking according to visibility - Pepsi ?

82%

18%0%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

70%

18%

12%

Rank 1

Rank 2

Rank 3

82% of the shops having Pepsico. DPS Boards got the rank 1st

according to their visibility status on the other hand 18% of the

retailers got the ranks 2nd and nobody got the 3rd. This shows that

retailers who got the DPS Boards as display material from the

company are using them satisfyingly.

70% of the shops having Coca-Cola DPS Boards got the rank 1st

according to their visibility status on the other hand 18% of the

retailers got the rank 2nd and only 12% of the retailers got the rank

3rd. This shows that in comparison to Coca-Cola, Pepsico.’s DPS

Boards are being used in far more satisfyingly.

FFIGUREIGURE 5 5

Out of the sample size, which has been covered 32 % of the shops,

had Pepsi’s refrigerator vis a vis to 30 % of Coca-Cola’s refrigerator.

This shows that percentage distribution of the refrigerator is almost

equal for both the companies.

11 % of the sample size had the refrigerator of both the major players

of the soft drink industry.

27% of the sample size didn’t have any of the company’s

refrigerators; they are using their own refrigerators for the chilling

purpose.

Out of Coca-Cola and Pepsi Beverages India Limited Whose Refrigerator do you have ?

PBI32%

Coca-Cola30%

Both 11%

Own 27%

PBICoca-ColaBoth Own

FIGURE 6FIGURE 6

Ranking according to visibility - Pepsi ?

68%

24%

8%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

33%

67%

0%

Rank 1

Rank 2

Rank 3

68% of the shops having Pepsico. refrigerators got the rank 1st

according to their visibility status on the other hand only 24% of the

retailers got the ranks 2nd and 8% of the retailers got the rank 3rd. This

shows that retailers who got the refrigerators as display material from

the company are not using them satisfyingly.

Only 33% of the shops having Coca-Cola refrigerators got the rank

1st according to their visibility status on the other hand 67% of the

retailers got the rank 2nd and none of the retailers got the rank 3rd.

This shows that in comparison to Coca-Cola, Pepsico.’s refrigerators

are being used in far more proper way.

FIGURE 7FIGURE 7

PBI, 4260

Coca-Cola, 3368

0500

1000

1500

2000

2500

3000

3500

4000

4500

PBI Coca-Cola

How many Bottles of PBI/ Coca-Cola do you have in your fridge

PBI

Coca-Cola

FFIGUREIGURE

the Pepsico.’s refrigerators 44% of the Coca-Cola bottles were found.

This shows that Pepsico.’s refrigerators are not being used to optimum

by the retailers in promoting Pepsico.’s products.

Availabity Comparision between Pepsi and Coca-Cola at the Outlets - using Pepsi Merchandising Asset

PBI56%

Coca-Cola44% PBI

Coca-Cola

FFIGUREIGURE 9 9

Reasons for not optimum use of Refrigerator / Ice Box at outlets ?

Shortage 13%

Problem of the Empty bottle

17%

Irregularity of the Salesman

34%

Other36%

Shortage

Problem of the Emptybottle

Irregularity of the Salesman

Other

FFIGUREIGURE 10 10

While giving the reasons for not using the Pepsico.’s refrigerators

34% of the retailers blame it to the lack of regular services from the

company (irregularity of the salesman), 17% of the retailers voted to

the problem of the empty bottles of Pepsi Beverages India, 13% voted

for the shortage of the different packing.

Despite of all the above reasons a huge segment 36% blame it to

different other reasons for below optimum use of refrigerators.

Out of the 36% other major reasons low demand (33%) and lesser

capacity refrigerators (34%) got the maximum share.

Despite of all the above there are even major number of retailers who

lame it to the unfulfilled promises from the company professionals.

Other Reasons for low optimum use of Pepsi's Assets

Low Demand34%

Smaller Fridge 33%

Unfulfilled promises from the Company

Representatives22%

Others11% Low Demand

Smaller Fridge

Unfulfilled promises from theCompany RepresentativesOthers

FFIGUREIGURE 11 11

Approximate sale of the retailer

0

1020

3040

50

6070

8090

100

0.5 to 2 3 to 5 6 to 10 More Than 10

FFIGUREIGURE 12 12

Approximate sale of the retailer

0.5 to 28%

3 to 546%

6 to 1028%

More Than 1018%

The sample size shows that maximum portion (around 46 %) of the retailers

whose sale are between 3 to 5 crates daily and only 8 % are the ones who are

selling less that two crates.

FFIGUREIGURE 13 13

How the retailler gets display material from the company ?

0

10

20

30

40

50

60

70

Schemes Gift Sharing / Draft Other

FFIGUREIGURE 14 14

How the retailler gets display material from the company ?

Schemes33%

Gift 40%

Sharing / Draft 21%

Other6%

The sample size gives us the brief idea about the pattern of

distribution of merchandising assets by the companies. Most of the

retailers (around 73%) are getting the display material through

different schemes or as the gifts.

FFIGUREIGURE 15 15

This gives us an indication, where the better prospects lies. In which

particular type of packing little innovation can do wonders. This

provides us with an idea where we should concentrate.

The sample size shows that there is huge demand of 2lt pack (26%)

and 200ml bottles (30%).

300ml bottles with 23% shares the 3rd position and 500ml. Shares the

4th position of the demand total demand with the market demand of

14%

FFIGUREIGURE 16 16

0

100

200

300

400

500

Pepsi Coca-Cola Thums-up

S1

Market Demand of Softdrink ( Cola )

Pepsi

Coca-Cola

Thums-up

FFIGUREIGURE 17 17

Market Demand of Softdrink ( Cola )

Pepsi 39%

Coca-Cola37%

Thums-up 24%

Pepsi

Coca-Cola

Thums-up

Sample size shows the comparison between the market demands of

each of cola drink.

Pepsi is on the top, shares the demand of 39% from the market.

Coca-Cola seconds with the shares of the demand of 39% from the

market beating Thums up with the remaining 24%

FFIGUREIGURE 18 18

Mirinda-O, 260

Fanta, 285

240

250

260

270

280

290

Mirinda-O Fanta

S1

Market Demand of Softdrink ( Orange )

FFIGUREIGURE 19 19

Market Demand of Softdrink ( Orange )

Mirinda-O48%

Fanta52%

Sample size shows the comparison between the market demands of

each of Orange drink.

Mirinda and Fanta are almost head to head with 48% and 52% market

demand. Though Fanta is having 4% more share than Mirinda Orange.

60%

40%

FFIGUREIGURE 20 20

FFIGUREIGURE 21 21

Sample size shows the comparison between the market demands of

each of Lemon drinks available in the market

Limca in the lemon flavour with the market demand share of 31% is

beating all the giants.

Pepsi’s two products Mirinda Lemon and Mountain Dew together

with the market demand share of 55% are competing with the Limca.

The new entrant to the market, Mountain Dew is gaining the market

share more dynamically than its competitor brands.

Sprite and 7 up are lacking behind with just the share of 14%.

FFIGUREIGURE 22 22

FFIGUREIGURE 23 23

Market Demand of Softdrink ( Mango )

Slice, 300

Mazza, 290

Sample size shows the comparison between the market demands of

each of Mango drinks available in the market

Slice and Mazza is almost head to head with 52% and 48% market

demand. Though Slice is having 4% more share than Mazza.

LIMITATION

Despite the possible efforts in conducting the research, there were some

unavoidable situations, which limited the scope of the project.

Considering the population, the sample taken for present study seems

small and hence further investigation may be required.

The sample taken for study was not of equal distribution so a

comparative study cannot be made.

Some of the retailers were non-cooperative in giving information,

which hampered the actual calculation.

Time available for research was very short so certain aspects have

been overlooked.

Retailers were hesitant to provide the complete information due to

fear of misuse of information.

Respondents may sometimes misinterpret the questions, leading to a

different answer.

RECOMMENDATIONS

1. Company should do something to meet its demand in the

market. Because there is an acute shortage of Pepsi 2 Lt party

pack and tin pack because of the shortage, Pepsi is not only

loosing the present market share but also providing way to the

rivals. For this either plant size can be expanded or some more

production equipments can be installed.

2. Since the market capacity is huge salesman needs time at every

retailer to satisfy him and tell him about the different products,

packaging, schemes etc. it’s quite difficult for him to visit every

shop on his route everyday. Therefore, there is necessity to

divide his route into two parts and increase the total number of

routes.

3. Sometimes salesman for different routes keeps on changing

very frequently (in a very short period). This should be

prohibited because every sales man needs time to get adjusted

to a particular route and even to know all the shops on the

route.

4. Salesman is working for 15 to 16 hours regularly during the

peak season at very low reimbursement, which may sometimes

kill his interest. Therefore there is a need of fixing up his

5. Company professions must not make the false promises about

the merchandising assets with the retailers. These retailers must

get the proper information and guidance about the company

policies on the merchandising assets. So that there must be no

frustration generated.

6. Though the GSB’s and DPS Boards are being used by the

retailers satisfyingly but still there is need of the guidance for

the retailers.

7. Schemes should be transparent and made clear to the retaikers.

8. As maximum number of retailers are selling around 3 to 5

crates daily. Our schemes should be revolving around this

percentage only. And while formatting the different schemes

this should be kept in mind.

9. For this salesman can be provided with some kind of guidance/

training, so that they can clear the queries of the customers

about the different schemes/ proposals

10.Retailer benefit schemes, which the company launches time by

time during the whole year, must be made clear to all the

retailers.

11.Customers can be informed about the schemes through the

broachers. Broachers can be distributed to all the retailers for

the schemes that are being launched once in a year. And for the

daily schemes which get change on daily bases and which

depends on the stock availability providing details about the

day's schemes/ after a paper/ pamphlet on different products can

be sticked to the delivery van signed by the TDM or ASM or

anybody authorized. So that every retailer if needed/ required

can verify himself about the daily schemes.

12.Company professionals should visit the field more regularly

and they must try to visit every retailer at least once in a month.

13. A proper trust and relationship building process is required

with the retailers, which need to be worked on.

14.Above figures shows the market demand comparison between

the different products of all the flavors available in the market.

Which show that we can gain market share through Pepsi.

Mirinda- (O) and Mountain Dew. So we should concentrate

more in completing the market demand of these products.

15. Above figures shows the market demand comparison

between the different packs available in the market. Which

show that we can gain market share through concentrating more

on 2Lt. and 200ml. pickings. So we should concentrate more in

completing the market demand of these packing

16.Other products and packing like Mirinda-L and 7 Up and 300

ml. Whose demand is going down require proper attention and

strategy.

CONCLUSIONCONCLUSION

After conducting the research, Researcher found that there are two

categories of retailers. The first one is of those retailers, which just want to

increase their assets, for them the sale doesn’t matter according to them they

can only increase the sale if the company will invest in them or in their

shops. These types of retailers will only work for the company, which invest

in them hugely. And if at any moment they found company has lost or

lowered their interest in them they will again shift to other major player.

Other kinds of retailers are those who are more bothered about working hard

and build their reputation in the market. These types of retailers are using the

merchandising assets to their optimum level. And sometimes if they are

unable to do so it’s because of the irregularity of the salesman (when the

salesman on the route gets changed) or because of the shortage of the

different products/packing.

There is a requirement of the company professionals to visit these retailers

continuously. So, that they can understand the market and suggest changes

accordingly. Despite of this, salesman and other company professionals who

visit these retailers must not do the false promises. Due to this retailers loose

their confidence in the company.

There is also the need of the transparent schemes and marketing mix that the

retailers can understand more properly.

QUESTIONNAIRE

Name of the SHOP ____________________ Tel No. ___________________________

ADDRESS __________________________________________________________

1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?

A. PBI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

2 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE DPS BOARD DO YOU HAVE?

A. PBI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

3 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR DO YOU HAVE?

A. PBI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

4 HOW MANY BOTTLES OF PBI DO YOU HAVE IN YOUR FRIDGE?

PBI _____________________ TOTAL _______________________

5 WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX TO ITS FULL STRENGTH?

A. SHORTAGE B EMPTY PROBLEM C IRREGULARITY OF THE SALESMAN D OTHER

6 APPROXIMATELY HOW MANY CRATES DO YOU SALE?A. 0.5-2 B 3-5 C 6-10 D MORE THAN 10

7 HOW DO YOU GET THE DISPLAY MATERIAL FROM THE COMPANY?A. SCHEMES B GIFT C SHARING / DRAFT D OTHER

8 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?( ) 2 LT. ( ) 1 LT ( ) 500 ML ( ) 300 ML ( ) 200 ML

9 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?A. ( ) PEPSI ( ) COCA-COLA ( ) THUMS-UP B. ( ) MIRINDA-O ( ) FANTA C. ( ) MIRINDA –L ( ) LIMCA ( ) MOUNTAIN-DEW ( )

SPRITE ( ) 7-UP

D. ( ) SLICE ( ) MAAZA

BIBLIOGRAPHY

Name of the books used for the reference and their authors.

1. Principles of Marketing - Kotler Philip

2. Research Methodology - Kothari C.R.

3. Market Research - Sharma D.D.

Websites Referred

http://www.pepsico.comhttp://www.google.comhttp://www.rkg.comhttp://pepsizone.yahoo.com

MAGAZINES

4 PSTime Education Magazine Times of India

PRICE LIST

200 ML Rate-146/caret

300 ML Rate-192/caret

600 ML Rate-444/caret

600 ML(slice) Rate-456/caret

2000 ML Rate-369/pet

2000 ML(Miranda) Rate-324/pet

Tatra (slice) Rate –218 /pet

Aquafina Water Rate-103/Pet

EDS FORMAT

S.No.

Outlet Name

Address

Contact Person

Channel

Status PBI/ CCX

Glass VISI OYC ICE BOXSIGNAGE

Wall Paint DPS GSB

PBI CCX PBI CCX OWN PBI CCX PBI CCX PBI CCX PBI CCX PBI CCX