a study on

A STUDY ON

“Visi Purity & Execution Program”

SUMMER TRAINING PROJECT REPORT

SUBMITTED TOWARDS PARTIAL FULFILLMENT

OF

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

(Approved by AICTE, Govt. of India)

(Equivalent to MBA)

ACADEMIC SESSION

2009-2011

Submitted By:

Raghvendra Singh

Roll No. : BM-09160

Under the Guidance of :

External Supervisor: Internal Supervisor:

Mr. Souvik Saha Prof. Anagha Shukre

Marketing co-ordinator in Varun beverage Faculty, IMS, Ghaziabad

INSTITUTE OF MANAGEMENT STUDIES

C-238, BULANDSHAHR ROAD,

LAL QUAN, POST BOX NO. 57,

1

GHAZIABAD – 201009

DECLARATION

I hereby declare that this project report entitled “ VISI PURITY AND

EXECUTION PROGRAM” is written and submitted by me is original work.

The findings and interpretations in the report are based on both primary and

secondary data collection. This project is not copied from any source or other

project submitted for similar purpose.

STUDY CONDUCTED BY

RAGHVENDRA SINGH

BM-09160

2

CERTIFICATE FROM INDUSTRY GUIDE

This is to certify that Mr. Raghvendra Singh , student of post graduate diploma

in business management (PGDM) from Institute Of Management Studies,

Ghaziabad has completed his Summer Internship Project title “Visi Purity &

Execution Program , to know the retailers preferences while asking for visi and

check it that visi is pure or not.” under my guidance and supervision.

I wish him all the best for his future endeavors.

Mr. Souvik Saha

Marketing coordinator

Varun Beverage Limited

3

CERTIFICATE FROM FACULTY GUIDE

This is to certify that Mr. Raghvendra Singh, student of postgraduate diploma in

business management (PGDM) from Institute Of Management Studies,

Ghaziabad has completed his Summer Internship Project title “Visi Purity &

Execution Program” under my guidance and supervision.

I wish him all the best for his future endeavors.

Prof. Anagha Shukre

IMS, Ghaziabad

4

ACKNOWLEDGEMENT

The satisfaction and the happiness that accompanies the successful completion

of any task would be incomplete without expression of appreciation and

gratitude to those people who made it possible.

Indeed, I consider it as a pleasant duty, though equally difficult to acknowledge

the motivating efforts of several people who have helped me in bringing this

project report to find its delight.

I express my sincere thanks to my faculty guide Prof. Anagha Shukre, industry

guide Mr. Souvik Saha & Mr. Neetesh Sharma, without their support and co-

operation, the completion of this project would have been close to impossible. I

am immensely grateful to them for showing all round guidance and personal

interest in my work.

I am thankful to many others who either directly or indirectly have helped me in

successful completion of this project.

Finally, I owe my gratitude to my beloved parents and my dear most friends who

have always stood by me and have been my moral support with sheer zeal and

enthusiasm at the worry and I dedicate my work to them.

Sincerely

Raghvendra Singh

5

BM-09160

CONTENTS

S.NO. Page No.

1. Preface ……………………………………………………..8

2. Objective of project…………………………………………9

3.Chapter 1(Profile of organization)…………………………..10

4. Chapter 1.1(About the company)……………………………11

5. Chapter 1.2(Product of company)…………………………...13

6. Chapter 1.3 Devyani Food LTD…………………………….16

7.Chapter 1.4 Varun beverage limited…………………………21

8.Chapter 1.5 Origin of VBL under RKJ group………………..23

9.Chapter 1.6 Vision……………………………………………25

10.Chapter 1.7 Pepsi cola international strategy……..………..26

11.Chapter 1.8 Company profile Indian scenario………………28

12.Chapter 1.9 Advertisement & add concept………………….31

13. Chapter 1.10 Sales and Marketing hierarchy have Pepsico India…...35

14 Chapter 1.11 Company profile……………………………….37

15 Chapter 1.12 Origin of Pepsi…………………………………38

16 Chapter 1.13 Pepsi Product…………………………………..39

17 Chapter 1.14 Corporate value………………………………..40

18 Chapter 2 Facility provided by company to retailers……..…42

19 Chapter 2.1 Sales & distribution network of Pepsi…………..44

20 Chapter 2.2 Structure of bottling plant……………………….47

21 Chapter 3 Visicooler Planogram………………………………50

22 Chapter 3.1…………………………………………………….52

23 Chapter 3.2 Limitations……………………………………….53

6

24 Chapter 4 Research Methodology………………………...…..56

25 Chapter 4.1 Research Design…………………………………57

26 Chapter 4.2 Sample design…………………………………..57

27 Chapter 4.3 Sampling Technique……………………………57

28 Chapter 4.4 Data collection………………………………….58

29Chapter 4.5 Data Analysis……………………………………59

30 Chapter 4.6 Day wise improvement in visi………………….61

31 Chapter 4.7 Factor analysis…………………………………..65

32 Chapter 4.8 Cross tabs……………………………………….73

33 Chapter 5 Finding & Conclusion……………………………..78

34 Chapter 6 Recommendations…………………………………80

35 Chapter 7 Limitations of the study……………………………81

36 Chapter 8 Bibliography……………………………………….82

37 Chapter 9 Annexure……………………………………………83

7

PREFACE

This study has been conducted on the topic “Visi purity and execution program” in

Jhansi region.

To make the result as accurate and comprehensive as possible, the study covered

various aspects of the various branch experiences, like the sales process, after

sales service, product quality, product performance and design, cost of

ownership and brand image, while ranking the contenders. Most researchers

assume that the better product performs the more satisfied to owner would be.

Whoever that is not always the case. Satisfaction also depends on which thing of

the product performing well. Demand acceleration is an example of the first type

of performance, where there is a direct link between return after certain period of

time.

Marketing plays a very important role in the success of any

organization, through we can do sales promotion, and this helps us in the

formulation of strategies according to the current scenario. This is the only thing,

which helps us to maintain our existence in the market. Now a day’s market very

uncertain it changes with the change in time so far maintaining our grip we have

to get ready to face any challenge of the market, like what ever change has been

occurred in the demand of the consumers. The company has to get ready to face

these rapid changes in my report I have tried to touch all the important points

relevant to the project. I hope those who will go through it will appreciate the

report.

8

OBJECTIVES OF PROJECT

This study offers an opportunity to the student of management to develop the

required skill and insights for making the best use of experiment and judgment to

practical life. To gain an insight into why individuals act in certain consumption

related way and learning. What external influence compels them to act as they

do? So main objective is to study of visi cooler and its purity execution program

in Jhansi?

1.To find out the popularity of Pepsi products among retailers.

2.To study the customer satisfaction for PepsiCo. Product from a retailer’s point of

view.

3.To improve the visi cooler purity.

4.To increase the sell of PepsiCo. Products with the help of visi purity and

execution program.

9

CHAPTER:1- PROFILE OF ORGANIZATION

R J CORPORATION:

Type Public (BSE)

Industry Food

Beverages (Alcoholic & Non-alcoholic)

Country of origin India

Founder Ravi Kant Jaipuria

Key People Ravi Kant Jaipuria

(Chairperson & CEO)

Products Pizza

Costa Coffee

KFC

Pepsi

Diet Pepsi

Mountain Dew

Aquafina

7up

Mirinda

Slice

10

Tropicana

Revenue 15 billion INR

Website www.rjcorp.in

CHAPTER 1.1:- ABOUT THE COMPANY

RJ Corp is a well-diversified Indian MNC, with business interests in soft

beverages, breweries, real estate, hospitality, healthcare, education, dairy, food

service and retail, with an annual turnover of over 15 billion rupees.

The first sign of economic liberalization signaled the entry of Pepsi into India in

1991 and with it started the journey of partnering Pepsi in their beverages

business in India through its existing plant at Agra under Agra Beverages

Corporation Ltd.

In 1993 Devyani Beverages Ltd was set up to take the Pepsi bottling operations

forward with the first plant at in Greater Noida. In 1995 Varun Beverages Ltd

was created and Devyani Beverages was merged with it in October 2004.

Currently there are 9 bottling plants operating across the country. Our PepsiCo

plants are in North-East, Western Uttar Pradesh, Rajasthan and Goa, Nepal,

Angola, Uganda and Mozambique. We have now recently bought PepsiCo

India’s West Bengal bottling plant in Sonarpur too. The current capacity is 35

million cases per annum during the peak season.

In 1996 the group forayed into the restaurant business-Devyani International Ltd

with an agreement with YUM in 1996 and the first Pizza Hut outlet was opened

up in Ganpathy Plaza in Jaipur. In July 2005 the first KFC outlet was opened in

11

http://www.rjcorp.in/

Salt Lake in Kolkata. Today we have 70 Pizza Huts outlets in the north of India

and East of India and 7 KFC outlets in the north and east of India. The restaurant

business was further strengthened with our partnership with Costa Coffee (part

of the Whitbread group). Currently we have 47 outlets across the country, and

this is a segment poised for rapid growth. Recently launched Food Court

operational at Domestic Airport, Delhi; opening shortly at International Airport,

Delhi. Devyani International Limited is the food service arm of group and is

uniquely placed with a portfolio of 3 international brands in the quick service

restaurant space.

The year 1992 heralded our appearance in the ice cream industry with Gaylord.

After being a key supplier to HLL in India for many years, in 2003 we launched

Creambell ice creams with Candida of France in 2003. With a manufacturing

facility in Baddi to start with, we are now on threshold of starting another unit in

Panda district in Goa.

RJ Corp has also entered the healthcare sector by setting up a Cord

Blood Stem Cell bank in Gurgaon. Cryobanks International India is a Joint

Venture between Cryobanks International USA and RJ Corp established in 2006,

under the leadership of Mrs. Dhara Jaipuria and guidance of Mr. Naresh Trehan

(country’s best known cardiac surgeon). Cryobanks International provides a

Private Cord Blood Storage Program for expecting families that wish to privately

store their baby's precious stem cells and a Public Cord Blood Donation Program

for those who prefer to donate.

In May 2006 the RJ Corp tied up with InBev (the largest beer company globally)

to form a joint venture to launch their beers in the country, beers brands like

Becks, Stella Artois, Tennents, Budweiser, Leffe and Hoegaarden in the country.

Group has been associated with 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 Secondary & pre-school

education is in line with educational projects of the group. The Group has

12

entered into a joint venture partnership with Modern Montessori International

(MMI) Singapore, to open pre-school educational institutions across the country

and franchise agreement with DPS at Gurgaon and Jaipur.

CHAPTER1.2

PRODUCT OF THE COMPANY

i. Pepsi with Varun Beverages Ltd

ii. KFC (Devyani International Ltd)

iii. Costa Coffee (Devyani International Ltd)

iv. Pizza (Devyani International Ltd)

v. Becks (InBev India International Ltd)

Industrial Profile

Food

Beverages

Medical

Education

1.Food:-Devyani International Limited:

Devyani International Ltd. (DIL) is key associate company of RJ Corp and is

engaged in running Pizza Hut, KFC, Costa Coffee and Disney Artist outlets in

various parts of the country.

Operations at DIL is well oriented keeping in view the groups mission that is

“To be people centric, customer focused and process driven operations, striving

for excellence, day in day out with a beat year ago and turn around mentality.”

Products of Devyani International Ltd.: -

13

Pizza Hut

KFC

Costa Coffee

Pizza Hut: -

Pizza Hut and KFC two known and popular names originally called

Tricon Restaurants are brands of YUM International: part of PepsiCo Group.

Pizza Hut has constantly and consistently delighted its’ clients across

demographic spectrum. And as per marketing surveys, it has been rated as the

most trusted brand in India for three consecutive years (2006-2008).

Pizza Hut outlets operate in three formats:

EDI: Enhanced Dine In. These outlets provide a fine dine in experience to

discerning customers.

PHD: Pizza Hut Delivery. PHD outlets outreach customers in their home.

RBD: Restaurant Based Delivery provides all three variations: dine in,

Carry out and delivery.

KFC: -

KFC outlets under DIL umbrella bring forth delicious and finger licking

chicken products in major cities of north and East India.DIL is proud owner and

operator of these 70plus food outlets of Pizza Hut and KFC across North and

East India. And is also entrusted with the responsibility of sourcing ingredients

and raw materials, which is done by reputed supplier from both India and

abroad. Also DIL stresses not only on the quality check of these raw materials

but also pay close attention of the hygienic and sanitation practices in its

operations as well. Before deploying the manpower of these outlets, the

employee undergoes set training modules- ranging from21 days to 90 days.

Senior managers and leaders constantly learn and orient them with modules

14

designed by YUM University to provide world class and standardize food and

service experience in any outlet- from Jodhpur to Bhubaneswar. And the mantra

“Maniacal mindsets to serve, delight and wow customers” is followed by the

entire Pizza Hut and KFC customer service staff.

Costa Coffee: -

In order to delight the Indian coffee aficionados, DIL inked an

alliance with Whitbread Group UK in 2005 and packeted the rights to initiate

Indian operations of its brands Costa coffee, under DIL umbrella in September

2005. Today DIL has more than 40 outlets of Costa coffee in NCR, Mumbai.

Kolkata, Chandigarh, Ludhiana, Jaipur, Lucknow and other prominent cities.

DIL is ambitious about its growth plans and aims 80 plus outlets of Costa coffee

to add to the pleasure of its customer by the end of 2009.

The ambiance of all Costa coffee outlets have been designed to provide comfort

to its’ mature and discerning customers. In addition to the ambience the

customers get personalized service, which gives them space to engage in serious

business as well as friendly chitchat.

The coffee beans at Costa coffee are imported and roasted in its in house

roastery. This ensures that its’ value customers get best coffee in the world. In

addition to its’ signature coffee, customers also find its’ food palatable, light and

hygienic. Every food products available in Costa coffee outlets are made at its’

HACCP certified commissary- food factory at Gurgoan, Haryana. Food items

made available in non-NCR stores are sourced locally from HACCP certified

and proven commissaries.

Costa coffee leadership believes in educating and training its’ baristas in art and

science of coffee making as well as customer satisfaction. Team Costa coffee

believes in making every minute in Costa coffee a memorable experience and

caters to “Life Style” of our customers.

15

CHAPTER1.3: - Devyani Food Industries Ltd.: -

The year 2003 marked the inception of Cream

Bell, a joint venture of RJ Corp with a “French Dairy Major”-Candia. Cream

Bell stands for innovation and manufactures ice cream, which can match up, any

international standards. This core brand philosophy has led to the introduction of

over 50 rich blend of exotic international and traditional Indian Ice –cream for

Indian palate that too, in a short span of 5 years.

To name a few variants, there are: Joosticks (Real juice

on Stick), Choco Vanilla, Double (Ice-Cream layered with fruits), Range of

mouth watering centre treat, Ripple, Kachha Aam & Pakka Aam and so on. The

other highly accepted products are nuts and raisins, Saffron and Almonds, Fruit

bonanza, King Alfanso, Swiss Butter Scotch.

The international favorites includes strawberry Farm, Belgian Chocolate, Cream

Bell tender all the segment of ice-cram business namely.

1. Impulse

2. Home

3. Catering (Hotel and Institution).

Cream Bell has its state of art manufacturing facilities in Buddi (Himanchal

Pradesh), which is spread over an area of more than 30 acres. The plant is

equipped with all modern facilities to produce world-class product with

precision. The plant at buddi has capacity to produce 3 million liters of ice cream

in a month. After consolidating North Indian cream bell has set its eye on Goa

where a plant with capacity of 2.1million liters is set and started feeding the

16

western market.

2. Medical: - (We at RJ Corp believe in the Cycle of Life. Today we are

proud to have an extended family of the who’s who in corporate world). -

Cryobanks International, India: -

Cryobanks International USA, a leader in the

stem cell banking with its high aims and ambitions to have a footing in India,

laid their trust in RJ Corp and signed a JV in 2006. And thus came into existence

Cryobanks International India.

The Cryobanks India under the leadership of Mrs. Dhara Jaipuria and with the

able guidance of Dr Naresh Trehan, one of the countries best-known cardiac

surgeons, has set up the first modern, state of the art cord blood stem cell blood

bank in North India Gurgoan. It aims to become one largest cord stem cell and a

highly specialized training centre in the field of cord blood banking. Cryobanks

India will have special focus on research of stem cell therapies as a potential

treatment for cardiac diseases and diabetes.

Cryobanks India has set up 28,000 sq feet, state of the art stem cell processing

and banking facility in Gurgoan, Haryana. Within two years of operation and

initial investment of 25crore, Cryobanks India has in store more than 4,000 stem

cells. It provide facility of collection from all major cities in India and follows

the “Close bag” collection for harvesting cord blood stem cells which greatly

reduce the possibility of contamination of cord blood. Cryobanks has a team of

medical professionals who have been intensively trained, certified and educated

in cord blood process and Quality Assurance process at Cryobanks International,

Inc, USA. And the company is working towards national and international

collaboration to provide the best of class facilities in stem cell industry in India.

17

3.Education: -

Delhi Public School (DPS): -

The Delhi Public School (DPS) Gurgoan has

been established in the fond memories of an exceptional human being- Smt.

Mala Jaipuria, who held close to her heart the spreading of value-based

education to every corner of the country?

It was Ravi Jaipuria, the well-known industrialist, social worker and

educationist, along with wife Dhara Jaipuria who envisioned this chain of

exceptional schools that are passionately committed to the cause of quality

education. This vision today takes shape through Delhi Public school society,

with the dynamism of its chairman.

The DPS society abiding by its traditional legacy has proved that private

enterprises in education can produce the greatest results with no strain on

country’s exchequer. DPS throughout have succeeded in producing men and

women who are great zeal and zest who are ready to be the torch bearer of a

resurgent India of the 21st century.

Modern Montessori School (Modern Montessori International India): -

Modern Montessori International (MMI) India is RJ Corp’s initiative that

promises to impart “education by means of liberty in a prepared environment”.

The environment that consists of good infrastructure and resources that are

displayed in ordered fashion, so that the child learns independence, self-direction

18

and sharing from the pre-school itself.

MMI India has four schools in Gurgoan, Delhi & Jaipur. And on 1st August’09,

MMI celebrated its 6 years (changed the no of years from 5 to 6 years as per ’09)

of success and excellence in preschool education.

In order to broaden the horizons of access to its schools MMI plans 14 more

school by 2010 (please confirm the data and process). The group will bear 51 per

cent of equity stake and will invests are Rs.200crore in Indian operations in the

next five years. In the long run the group is targeting to initiate 20 schools each

year with an investment of Rs.5 crore per school.

MMI conditions and moulds its student as per its five traditional areas of

education, which are:

Practical Life Exercise: - aimed to provide real life; practical and wholesome

range of activities that would help the child imbibes and develops several control

and coordination traits.

Sensorial Training: - aimed to sensitize the child about its five senses and

develop an understanding of smell, sight, sound, touch and taste that lay

foundation for Mathematics, Geometry, Geography, Botany, Art, Music, etc.

Further the child gradually develops to use the multi-sensory approach that

combines phonics, stories and language experiences to bring meaning to the

learning of reading and writing. This equips the child to utilize all his/her senses

to help him/her read and write with proper understanding and not simply mug up

things by heart.

Montessori Mathematics: - is an activity-based programmed that allows your

child to have hands-on experience in learning mathematical concept.

Apart from Modern Montessori International (MMI) India, RJ Corp also has its

franchise agreement with DPS at Gurgoan and Jaipur.

19

4.Beverages: -

(“Proud to bring home, the COOLEST DRINK to the YOUNGISTAN”)

InBev India International Pvt Ltd.: -

The true global spirit: -

When beer major InBev came scouting in the country for partner for a partner to

join hands to tap the growing beer segment, they willfully chose RJ Corp, which

by then had established a reputation of having successfully partnered the world’s

leading brands in India and abroad. Thus in 2006 a joint venture were signed

between RJ Corp and InBev to give rise to InBev India Private Limited.

InBev is global brewer, with leading position in the US, Europe and Asia. It

ranks amongst the top 2 from 20 key beer markets in the world. InBev has a

profound portfolio of over 200 brands, which includes iconic brands like Stella,

Artois, Leffe, Beck’s, Hoegaarden, Tennents and Budweiser to name a few. And

have enough to match “The perfect spirit of a truly global Indian”.

20

CHAPTER1.4

Varun Beverages Ltd.: -

Pepsi

The flavour of the youth

PepsiCo entered India in 1989 and grew to become one of the countries leading

food and beverage companies. As one of the multinational investors in country,

PepsiCo has developed a portfolio of brands that seek to refresh and excite

Indian customers. RJ Corp has associated with PepsiCo since the latter’s entry

into India. In 1991 a license agreement was signed between the two companies

and RJ Corp became PepsiCo’s largest bottling business partner in India through

its entity, Varun Beverage Ltd

(VBL). We seek to serve our customers with a passion to insure Pepsi’s

beverage brands retain their position as market leaders in our franchise areas.

The group manufacturers and markets carbonated and non-carbonated soft drinks

and package drinking water under the Pepsi brand umbrella. The beverage

portfolio includes iconic refreshment brands Pepsi, 7UP, Miranda, and Mountain

Dew, in addition to low calorie option such as diet Pepsi hydrating and

nutritional beverages such as Aquafina drinking water, juice based drinks-

Tropicana, Tropicana Twister and Slice. Also Lehar Verves Soda among local

brands. The total turnover of the beverages division is about 800 cores & enjoys

a healthy market share of 52% vis-à-vis competition in the geographical domains

that the group operates. This is possible through rigorous & robust distribution

21

set-up & aggressive input deployments in the market place.

VBL has selling and distribution rights in territories of East Delhi, Western U.P.,

part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 states of Maharashtra,

North East and entire country of Nepal. The group has in total 9 bottling and

manufacturing plants in India and Nepal and is responsible for producing and

marketing 30% of Pepsi’s business in India. The bottling plants of group in India

and Nepal are located at the following sites:

• Greater Noida

• Kosi (Mathura)

• Chaupanki (Bhiwadi)

• Alwar

• Jodhapur

• Guwahati

• Nepal

• West Bengal

To serve and meet the growing demand for non-carbonated beverages, our

Greater Noida plant has been equipped with world-class manufacturing facilities

to produce juice and juice based drinks.

Our state of art, can manufacturing line runs out of Chaupanki plant which is

supplying 50% of India’s Pepsi can package needs. The group has its own

manufacturing unit of PET performs, crowns, plastic lugs, PET closures. PET

performs are manufactured at Kosi plant was commissioned in 2000 and

produces 254 million performs annually.

In March 2004 the group commissioned new facility to manufacture crown

corks, plastic shells and lug caps. A brand new SACMI crown line was thus

22

imported to set the ball rolling. It had an annual production capacity of 144000

cases (each case containing 100 Gross), and a brand new Crabtree printing line

with follow on coater, which is the latest technology internationally. It also had a

lug cap line installed, to meet the demand of Gherkins exporters. This line was

commissioned in July 2006.

No wonder, we at VBL have been consistently winning accolades in the Pepsi

world right from being Best Bottler of the World to the Best Bottler in South

Asia. Having bagged a number of Quality Awards clearly signifies our

technological prowess and ability to meet any specification and yet be

competitive.

CHAPTER 1.5

“ORIGIN OF VARUN BEVERAGES LTD. UNDER RKJ GROUP”

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

niche for itself. Its 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 laid 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.

23

It 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. Mr. Donald M. Kendall, founder of PepsiCo Inc,

presented the award. 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 Weatherup, President of Pepsi Cola Company.

24

CHAPTER 1.6

Vision: -

Being the best in everything we touch and handle.

Mission: -

Continuously excel to achieve and maintain leadership position in the chosen

businesses; and delight all stakeholders by making economic values in all

corporate functions.

Their Success: -

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.

Their People: -

At RKJ Group they are creating an environment where our employees enjoy a

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

Their employees are equipped with the necessary tools, training and

management backup for strong performance and accountability, as well as in an

environment of open communication and involvement.

25

CHAPTER 1.7

PEPSI COLA INTERNATIONAL’S STRATEGY

1. Target core Brand

2. Focus on business growth.

3. Satisfy market priorities

4. Focus on franchising with building core of company owner.

A North Carolina Pharmacist established Pepsi Cola in 1980 as a cure for

Dyspepsia (indigestion). Under the supervision of Mr. Caleb Bradhman Pepsi’s

first bottling plant was build 1905.

In 1977, when Coca-cola left the country then Pepsi Co. began to lay plans to

enter this huge Indian soft drink market. Pepsi working with Indian business

groups to seek government approval for its entry in the India soft drink market.

Pepsi offered Indian Government to help in the exports of some of its

agricultural products in a volume that would cover the cost of importing soft

drink concentrate.

Pepsi Company is established in Indian in 1989. At that particular time it was

know as a non-COBO (Company owned bottling operations) company. In

January 1995 Pepsi took over and it is now known as a COBO.

Company owned bottling operations) company. It joined hands with

Voltas Ltd. 60%equity. But now it has become a fully owned subsidiary.

Pepsi Company is broad based food and Beverages Company, serving more than

60% of its sales and operation profits from its snack- foods and restaurants

26

business. Established with a turnover of $ 28 billion in 1989, the company’s

beverage business has grown 50% streets ahead of the market; which has

expanded by 20%. It poured in vast sums to whip up its visibility at the retail

level, so that consumes were greeted virtually at very street corner by Pepsi’s

blue-red and white colors. Behind the hype, in effort invisible to consumers,

Pepsi pumped in Rs.300 Crore to add muscle to its infrastructure in bottling and

distribution. This is apart from the money that up grading the plants.

April 1993, Voltas and Punjab Agro’s equity stakes were bought over converting

Pepsi Foods from a joint venture to fully own subsidiary. Weak bottlers who did

nit have the finance were given massing support in from of interest- free loans to

upgrade their operations. But the big strategy, which has proved to be winner

was the position Pepsi, decided taken company owned Bottling operations

(COBO). For this another subsidiary Pepsi co. India Holding was set up as

investment vehicle capitalized at $9.5 million.

1991 saw a major launch of 7-up in India, which was warmly received by India

customers and consumers.

1994 Pepsi achieved the number 1 position in cola brand India.

1995 2new COBOs were opened in UP & Gujarat.

1996 Mirinda attend No 1 Position in orange beverage category.

May 1998 was major launch of Mirinda Lemon in India.

Pepsi is trying very hard to maintain the lead it made over its

competitors in the India sift drink market. It is expanding its business in the other

fields also. It is in the business of export of beverages concentrates. This year

Pepsi has achieved a 100% growth in the export turnover in the first quart of

1998 over the corresponding period for the previous year. Pepsi has taken a lead

in the beverage concentrate exports from potential in the near future. Pepsi has

also developed agricultural linkages to boot its export thrust and as a move in the

27

direction, its plant at Sonepat has become the first rice-processing facility in

India. Pepsi mean while added a new range of products to its agro-export

Portfolio. These include Baron, a bread of peanut butter marketed U.S., Branded

red and green chili, Puree, ginger and garlic paste &cooking paste under the

season’s Harvest home, which is also the name of its branded basmati rice.

CHAPTER 1.8

“COMPANY PROFILE IN INDIAN SCENARIO”

Since the entry of Pepsi co. to India in 1987, the soft drink Industry has

undergone a radical change. When Pepsi entered parley was the leader with

‘Thumps UP’ being its flagship brand. Other product offerings by parley

included Limca & Gold Spot. Another upcoming player in the market was the

erstwhile bottle of Coca-Cola, Pure Drinks. Its offerings included Campa Cola,

Camps Lemon and Campa Orange.

With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for more

aggressive marketing to sustain its market share. The chronology the initial

phase of the “Coal Wars” in India was:

July 1986

An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas and

Punjab Agro is submitted to the government after an earlier proposed alliance-

1985, between Pepsi and Duncan’s of the Goenkas fails to take off.

Sept.1988

Final approval for the Pepsi Foods Limited (P.F.L) project granted by the

Cabinet Committee on Economic Affairs of the Rajeev Gandhi Government.

March 1990

Pepsi Cola and Seven up Launched in limited market in North India.

May 1990

28

The government clears the Pepsi project again but with a change in brand name

to Lehar Pepsi. Simultaneously it rejects the Coca-Cola application. Citra form

the Parle stable hits the market.

Dec 1991

Pepsi extends its soft drinks reach on national scale. Products launched Delhi

and Bombay.

Jan 1992

Brito Foods application cleared by the FTPB. Pepsi and Parle start initial

negotiations for strategic alliance but talks break off after a while.

1993

Pepsi launches Teem and Slice. captures about 25.30% of the soft drinks market

in about two years.

July 1993 Volta’s pulls out of PFL joint venture. Reports of coke – Parle

negotiations gain strength.

1994

Pepsi brought Dukes& Sons

1995

Pepsi launched Cans having capacity of 330 ml in various flavors.

1997

Pepsi brought Mirinda Orange opposite to Fanta.

1998

Pepsi launched Lemon Mirinda to give taught competition to Limca.

29

1999

Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for health

conscious people.

1997

Refusing to dilute its equity state Coca-Cola winds up operations in the country.

Parle launches Thumps Up and Drinks launches Campa Cola.

2001

Pepsi launched Aquafina.

2003

Pepsi launched Mountain Dew

2005

Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.

2006

Bubbly Pepsi was launched.

2007

Pepsi Gold was launched

30

CHAPTER1.9

Advertisement and Add Concept: -

Advertisements are cost effective means to communicate messages and ideas to

build brand preferences and awareness and it is one of the most important tools

which a company uses to direct persuasive communication to directive buyers in

public or to educated people to avoid hard drink and so on. The basic objective

of advertising is sales promotion sales promotion expenditure have been

increasing as a percent of budget expenditure annually and the growth is likely to

continue in future. Our celebrities signed by the PepsiCo

For PepsiCo.

Cricketers: -

• Sachin Tendulkar

• Rahul Dravid

• Mohd. Kaif.

• Yuvraj Singh

• Harbhajan Singh.

• Sourav Ganguly.

• Zaheer Khan

31

• Ajit Agarkar

Cine Stars

• Kareena Kapoor

• Shahrukh

• Kajol

• Adnan Sami

• Fardeen Khan

• Amitabh Bachhan

• Govinda

• Rani Mukherjee.

. Ranbir Kapoor

Tennis Stars: -

• Leander Paes

• Mahesh Bhupati

Football Players

32

• Cyrus Broacha

• Bhaichung Bhutia

CHAPTER 1.10

SALES AND MARKETING HIERARCHY HAVE

PEPSICO INDIA

CHAIRMAN

(Mr. RAVI JAIPURIA)

MARKET UNIT MANAGER

UNIT MANAGER

GENERAL MGR. TERRITORY DEV. MANAGER

MANAGER

(Markt. Deptt.)

PRODUCTION MGR. AREA DEV. Coordinator

QUALITY CONTROL

MANAGER

MARKETING EXECUTIVE CUSTOMER

33

EXECUTIVE

SHIPPING MGR.

SALESMAN

TRANSPORT MGR.

MUM – Marketing Unit Manager:

In charge of specific zones (e.g. north, south, east, west) and report to the

corporate office.

UM - Unit Manager:

In charge of day-to-day operations and supervision of all the functions within the

organizations including operations, logistics, sales and distribution, marketing.

The Unit Manager reports to the MUM.

TDM - Territory Development Manager:

TDM is the in charge of the sales and distribution network of a particular

territory within a zone. Responsible for the daily, monthly and annual sales

within the territory decides the daily schemes for products and incentives for

salespersons. He is also responsible for cost effectiveness, profit generation and

profit maximization within the territory.

MDM - Marketing Development Manager:

MDM is responsible for all the marketing activities and their effectiveness

within a territory. Decides the format and time frame of the marketing and

promotional activities and the incentives given to the retailers.

ADC - Area Development Coordinator:

Reports to the TDM, and is in charge of a C & F center and the distributor point

in the area. He is directly responsible for any issues in the area and is supposed

34

to ensure the smooth functioning of the entire sales and distribution network in

the area. ADC is responsible for timely disposal of any issue faced by the

retailers. He decides and approves the boards, displays and hoardings in the area.

MDC - Marketing Development Coordinator:

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

the area. He is responsible for the execution and success of marketing and

promotional activities. Coordinates with the outside agencies for displays,

boards, and checks conducted in the market. He is also responsible to keep a

check on the expenditure of the marketing activities in the market.

CE - Customer Executive:

Reports to the ADC and is in charge of the salespersons. He is required to visit

the market and accompany every salesperson as frequently as and is the first

contact if the salespersons or retailers face issue. Responsible for assigning and

achieving daily sales target given to the salespersons.

ME - Marketing Executive:

Reports to the MDC and is responsible for the daily functioning of the marketing

activities in the including awareness of promotions in the market and the

response in the market

Salesperson:

They are the most important assets for the company as they are the ones who sell

the products, are responsible for acquiring new customers, and retain the old

ones. Their work also includes informing the retailers about the promotions and

any new scheme launched. They are also required to push for the sale of any new

product launched in the market and make sure that the retailers are following the

35

company guidelines regarding the launch and the maintenance of Visicoolers.

They report to the CE.

Merchandiser:

Reports to the ME and is responsible for the distribution and usage of the

displays and boards in the area. Also has to check whether retailers are following

the guidelines of the company regarding promotional displays, other displays

and displays in the Visicoolers. They report to the ME.

Pepsi is one of the most well known brands in the world today available

in over 160 countries. The company has an extremely positive outlook for India.

"Outside North America two of our largest and fastest growing businesses are in

India and China, which include more than a third of the world’s population."

(PepsiCo’s annual report, 1999) This reflects that India holds a central position

in Pepsi’s corporate strategy. India is a key market for PepsiCo, and at the same

time the company has added value to Indian agriculture and industry. PepsiCo

entered India in 1989 and is concentrating in three focus areas – Soft drink

concentrate, snack foods and vegetable and food processing. Faced with the

existing policy framework at the time, the company entered the Indian market

through a joint venture with Voltas and Punjab Agro Industries. With the

introduction of the liberalization policies since 1991, Pepsi took complete

control of its operations.

The government has approved more than US$ 400 million worth of

investments of which over US$ 330 million have already flown in possible. He

is the first person to get information about the market area One of PepsiCo’s key

strategies was to develop a completely local management team. Pepsi has 15

36

company owned factories while their Indian bottling partners own 28. The

company has set up 8 greenfield sites in backward regions of different states.

PepsiCo intends to expand its operations and is planning an investment of

approximately US$ 500 million in the next three years

CHAPTER1.11

Pepsi

Company Profile:-

Type Cola

Manufacturer PepsiCo.

Country of origin United States

Introduced 1898 (as Brad’s Drink)

June 16, 1903 (as Pepsi-Cola)

1961 (as Pepsi)

Related products Coca-Cola

Fanta

Dr Pepper

7 Up

Irn Bru

Cola Turka

Big Cola

37

Market Share 31.4% of total market share

Website http://pepsi.com

CHAPTER1.12

Origin of Pepsi:-

It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898

by Caleb Bradham, who made it at his pharmacy where the drink was sold. It

was later named Pepsi Cola, possibly due to the digestive

enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a

fountain drink that was delicious and would aid in digestion and boost energy.

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a

rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next

year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons.

In 1909, automobile race pioneer Barney Oldfield was the first celebrity to

endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a

fine bracer before a race". The advertising theme "Delicious and Healthful" was

then used over the next two decades. In 1926, Pepsi received its first logo

redesign since the original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered

bankruptcy - in large part due to financial losses incurred by speculating on

wildly fluctuating sugar prices as a result of World War I. Assets were sold and

Roy C. Megargel bought the Pepsi trademark. Eight years later, the company

went bankrupt again. Charles Guth then purchased Pepsi’s assets; the President

of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda

fountains. He sought to replace Coca-Cola at his stores' fountains after Coke

38

refused to give him a discount on syrup. Guth then had Loft's chemists

reformulate the Pepsi-Cola syrup formula.

On three separate occasions between 1922 and 1933, the Coca-Cola Company

was offered the opportunity to purchase the Pepsi-Cola company and it declined

on each occasion.

CHAPTER 1.13

PRODUCT OF PEPSI:-

39

CHAPTER1.14

CORPORATE VALUES

The PepsiCo group has always been a value driven organization. These

values continue to direct the group’s growth and business. The five core PepsiCo

40

values underpinning the way we do business are as follows:

Integrity:

We must conduct our business fairly, with honesty and transparency.

Everything we do must stand the test of people scrutiny

Understanding:

We must be caring, respectful, compassionate and humanitarian towards

our colleagues and customers round the world and always work for the benefit of

India.

Excellence:

We must constantly strive to achieve the highest possible standard in our

day-to-day work and in the quality of goods and services we provide.

Unity:

We must work cohesively with our colleague across the group and with our

customers and partners around the world to built strong relationship based on

tolerance, understanding and mutual co-operation.

Responsibility:

We must continue to be responsible and sensitive to the country, communities

and environments in which we work always ensuring that what comes from the

people goes back to the people many times over.

Mission:

Our mission is to be the world's premier consumer Products Company

focused on convenient foods and beverages. We seek to produce financial

rewards to investors as we provide opportunities for growth and enrichment to

41

our employees, our business partners and the communities in which we operate.

And in everything we do, we strive for honesty, fairness and integrity.

Vision:

"PepsiCo's responsibility is to continually improve all aspects of the world

in which we operate – environment, social, economic – creating a better

tomorrow than today."

Our vision is put into action through programs and a focus on environmental

stewardship, activities to benefit society, and a commitment to build shareholder

value by making

CHAPTER 2

FACILITIES PROVIDED BY THE COMPANY TO THE

RETAILER

42

1. VISI COOLER

65 Liter

110 Liter

120 Liter

165 Liter

200 Liter

210 Liter

220 Liter

300 Liter

320 Liter

330 Liter

500 Liter

According to outlet nature, volume & investment of the outlet.

2. SCHEMES OF VOLUME PURCHASE

Cash discount

Card discount (sampling)

3. DISPLAY MATERIAL

Stickers

Banners

G.S. Boards

43

D.P.S. Boards

Racks

Counters

Umbrella

CHAPTER 2.1

FIG. 4 – SALES AND DISTRIBUTION NETWORK

OF PEPSICO INDIA.

44

COMPANY

Initially the focus of the Company remains on reaching all the markets and then

the company shifts its focus on increasing the frequency of sales in the

respective markets so that the sales and profitability of the company can be

increased. Company (PepsiCo): PepsiCo India provides the salt to all the bottling

45

COBOFOBO

WAREHOUSE

C&F DISTRIBUTER

SALESMAN SALESMAN

WHOLESALERSLUMS

RETAILER

RETAILER

CUSTOMER

CUSTOMER

CUSTOMER

plants in the country that carry out the bottling operations.

COBO: These are Company owned bottling operations operating directly under

the Company. Out of 32 bottling plants, PepsiCo owns 15.

FOBO: These are Franchise owned bottling operations. R K Jaipuria group does

all the franchisee-bottling operations for PepsiCo India; currently R K J Group

has 17 bottling plants for Pepsi.

Warehouses: These are Company or franchisee owned warehouses spread over

various locations that cover the respective territories and come under the

purview of their respective Area or Territory Offices. Stocks are sent from the

bottling plants to these warehouses, from where they are sent to the C & F

centers and Distributor Points.

C & F Centers: These are the biggest centers in the distribution network and

receive proper assistance from the Company (either COBO or FOBO). The C &

F center is owned by a private player and not by the Company. The vehicles

(Delivery Vans) are owned by the Company, and the Salesmen at the C & F

points are on the Company Payroll.

Distributors: These are small, compared to C & F centers. Everything at the

distributor point owned and managed by the distributor, even the salespersons

are on the Distributors payroll.

Wholesalers: These are smaller than C & F centers and Distributor points and

get the stock directly from the Company or Franchisee. They get their stock

directly from the Company and thus get special rates and extra discounts from

the Company.

46

Slums: They are generally smaller than the Wholesalers are. However, they get

special discounts from the C & F centers and Distributor points. All the different

players in the distribution channel namely C & F centers, Distributor points,

Wholesalers and Slums have different designated markets and are not supposed

to operate in the market designated to any other player.

Retailer: Retailers are the most important chain in the distribution channel of

Pepsi as they are the only point of contact with the customers. Retailers get their

stock from all the other channel members in the distribution channel.

CHAPTER2.2

STRUCTURE OF BOTTLING PLANT

47

COBO FOBO

There are 43 bottling plants have exist in different parts of India.

From which 15 bottling plants are company owned such as COBO & 28 bottling

plants are franchise based like FOBO.

COBO:

COBO stands for company owned bottling operations, the company has

total control f its decisions & the implementation but it has to invest its own

money on plant and machinery, glass & infrastructure. There are 3 bottling plant

in UP which is based on COBO.

1. Jonpur

2. Sathariya

3. Bazpur

Jonpur plant covers Lucknow & Kanpur.

Sathariya is serving Gorakhpur, Allahabad & Banaras.

48

Bazpur plant gives their services to Bareilly.

Jonpur is the third largest COBO plant in India. It has three production

lines, mentioned as under.

Kettner- 600 Bottles per Minute (BPM)-Carbonated Soft Drink (CSD)

Sasib-400 bottles per minute (BPM) - Carbonated Soft Drink (CSD)

Slice Line- 200 Bottles per Minute The COBO structure is as under.

Pepsi food limited (PFL)

PepsiCo India Holding (Production & plant)

PepsiCo India Market (Support Infrastructure, Marketing Sales &

Distribution)

In U.P. there are six warehouses at the following places.

1. ALLAHABAD2. BANARAS3. BAREILLY4. GORAKHPUR5. KANPUR6. LUCKNOW

FOBO:-

FOBO stands for franchise owned bottles operations in India Pepsi

have franchise. In case the company supplies its soft drink concentrate to its

49

bottle syrup. Pepsi has taken a more capital-intensive route of owning and

running its own plants alongside those of its franchises.

Getting into FOBO has helped PepsiCo on several fronts. First, it has

enabled Pepsi to focus on marketing operation as much as it has an

operational front. Another gain of (bottles) & infrastructure the cost burden

has been reduced.

The FOBO structure is as under.

Pepsi Food limited (PFL)

Syrup

Franchise (bottlers)

Franchise invent in plants & machines, glass (bottles)

There are FOBO’S in many cities in India some of them are

AGRA

BIHAR

BHUBNESHWAR

HYDERABAD

GOA

DELHI

NAGPUR

PUNJAB

CHAPTER 2.3

PRICE LIST OF PRODUCTS

50

PEPSI 200ML

300ML

600ML

2LT

Rs. 10

Rs..13

Rs.22

Rs.60

MIRINDA 200ML

300ML

600ML

2LTR

Rs. 10

Rs..13

Rs.22

Rs.60

MOUNTAIN DEW 200ML

300ML

600ML

2LTR

Rs. 10

Rs..13

Rs.22

Rs.60

7 UP 200ML

300ML

600ML

2LTR

Rs. 10

Rs..13

Rs.22

Rs.60

SLICE 250ML

600ML

1.25LTR

Rs. 13

Rs..25

Rs.50

NIMBOOZ 200ML

350ML

Rs. 10

Rs..15

51

TROPICANA 200ML

600ML

Rs.15

Rs.30

AQUAFINA 1LTR. Rs.14

CHAPTER 3

VISICOOLER PLANOGRAM

52

Introduction of Plan-o-Gram

PepsiCo visi plan-o-gram has its own importance. It focuses on the all

brands of Pepsi. It is also known as brands execution. It is also very useful to

identify and choose the brand for the customer. In this plan-o-gram the brands

are kept in an order in visi cooling equipments.

There are different types of visi cooling equipments and for each type of visi

different types of plan-o-Gram is used.

POG plays a vital role on terms of sale of many plant as we aware of POG

activity (more display more selling).

CHAPTER 3.1

PLAN-O-GRAM FOR 220 VISI COOLER DISPLAYS

53

PLAN-O-GRAM FOR 300 LITER VISI COOLER DISPLAY

55

PLAN-O-GRAM FOR 400 LITER VISI COOLER DISPLAY

56

CHAPTER 3.2

LIMITATIONS OF PLANOGRAM

Most of the retailers are unaware about the benefits of

planogram (POG) so they are not taking much interest in this activity. All of the

retailers having very keen interest in visi charging but many of for more them

don’t care about visi-purity, because they are putting other local brands of

eatables profit.

SUGGESTIONS

Most of the retailers are unaware about the benefits of planogram

(POG) so they are not taking much interest in this activity. All of the retailers

having very keen interest in visi charging but many of for more them don’t care

about visi-purity, because they are putting other local brands of eatables profit.

It must be the responsibility of pre sales representative & other officials of

PepsiCo to motivate the shopkeeper about the benefits of visi purity. Planograms

also included in that conversation.

CHAPTER 4

57

RESEARCH METHODOLOGY

CHAPTER 4.1- Research Design

Research design is a framework or blueprint for conducting the market research

project. It specifies the details of the procedures necessary for obtaining the

information needed to structure and /or solve marketing research problem.

Research design is descriptive for this project, which comes under conclusive

research design. Conclusive research design is to assist the decision maker In

determining, evaluating and selecting the best course of action to take in a given

situation. And a descriptive research has its major objectives the description of

something- usually market characteristics or functions. It is used to determine

the perceptions of people toward product.

CHAPTER 4.2- Sample Design

Sample Unit

Sample units are all the restaurant, grocery shops, provisional stores who uses Pepsi visi cooler.

Sample Size

Sample size of this research project is 50. The sample size have diversified

sampling units in terms of type. Grocery stores have high percentage in mix i.e.

CHAPTER 4.3- Sampling Technique

Here sampling technique used by me for this project is random sampling.

CHAPTER 4.4

58

Data Collection

Source

Primary data is collected through questionnaire in Jhansi city during the

promotion of product.

59

CHAPTER 4.5- DATA ANALYSIS VISICOOLER STATUS BEFORE

MY VISIT

S.NO. Date Area Outlet covered no. of visi pure

1 3/5/10 Jhansi 20 10

2 4/5/10 Jhansi 23 14

3 5/5/10 Jhansi 18 11

4 6/5/10 Jhansi 21 9

5 7/5/10 Jhansi 17 6

6 10/5/10 Jhansi 15 15

7 11/5/10 Jhansi 22 14

8 12/5/10 Jhansi 13 8

9 13/5/10 Jhansi 11 10

10 14/5/10 Jhansi 11 4

11 15/5/10 Jhansi 14 6

12 17/5/10 Jhansi 18 5

13 18/5/10 Jhansi 16 12

14 24/5/10 Jhansi 10 8

15 25/5/10 Jhansi 17 13

16 26/5/10 Jhansi 12 7

17 27/5/10 Jhansi 19 9

18 28/5/10 Jhansi 24 10

19 29/5/10 Jhansi 16 7

20 1\6\10 Jhansi 16 8

21 2/6/10 Jhansi 15 6

22 3/6/10 Jhansi 15 5

23 4/6/10 Jhansi 13 11

24 7/6/10 Jhansi 25 21

25 8/6/10 Jhansi 25 22

26 9/6/10 Jhansi 21 19

27 10/6/10 Jhansi 9 7

28 11/6/10 Jhansi 23 16

29 14/6/10 Jhansi 18 12

30 15/6/10 Jhansi 13 11

31 16/6/10 Jhansi 12 8

32 17/6/10 Jhansi 16 15

33 18/6/10 Jhansi 16 12

34 19/6/10 Jhansi 21 14

35 21/6/10 Jhansi 20 16

36 22/6/10 Jhansi 22 13

37 23/6/10 Jhansi 25 19

38 24/6/10 Jhansi 21 17

39 25/6/10 Jhansi 18 14

60

S.NO. Date Area Outlet covered no. of visi pure

1 3/5/10 Jhansi 20 18

2 4/5/10 Jhansi 23 19

3 5/5/10 Jhansi 18 16

4 6/5/10 Jhansi 21 15

5 7/5/10 Jhansi 17 14

6 10/5/10 Jhansi 15 15

7 11/5/10 Jhansi 22 21

8 12/5/10 Jhansi 13 11

9 13/5/10 Jhansi 11 11

10 14/5/10 Jhansi 11 6

11 15/5/10 Jhansi 14 9

12 17/5/10 Jhansi 18 14

13 18/5/10 Jhansi 16 15

14 24/5/10 Jhansi 10 10

15 25/5/10 Jhansi 17 13

16 26/5/10 Jhansi 12 10

17 27/5/10 Jhansi 19 16

18 28/5/10 Jhansi 24 21

19 29/5/10 Jhansi 16 14

20 1\6\10 Jhansi 16 12

21 2/6/10 Jhansi 15 9

22 3/6/10 Jhansi 15 14

23 4/6/10 Jhansi 13 13

24 7/6/10 Jhansi 25 24

25 8/6/10 Jhansi 25 23

26 9/6/10 Jhansi 21 20

27 10/6/10 Jhansi 9 9

28 11/6/10 Jhansi 23 20

29 14/6/10 Jhansi 18 16

30 15/6/10 Jhansi 13 12

31 16/6/10 Jhansi 12 12

32 17/6/10 Jhansi 16 15

33 18/6/10 Jhansi 16 14

34 19/6/10 Jhansi 21 18

35 21/6/10 Jhansi 20 17

36 22/6/10 Jhansi 22 17

37 23/6/10 Jhansi 25 22

38 24/6/10 Jhansi 21 18

39 25/6/10 Jhansi 18 17

61

CHAPTER 4.6

DAY WISE IMPROVEMENT OF VISI PURITY

Status of visi cooler in outlets from day 1-20

62

Status of visi cooler in outlets from day 21-40

NOTE- Here blue color bar shows the no. of visi pure before my visit

Red color shows the no. of busy pure after my visit

63

Status of visi cooler from day 41 to 60

NOTE- blue color shows no. of visi pure before my visit

Red color shows visi pure after my visit

Total no. of visi 25

64

CHAPTER 4.7

Factor Analysis

Table-1

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .502

Bartlett's Test of Sphericity Approx. Chi-Square 66.230

Df 45

Sig. .021

Interpretation- As the value of KMO is 0.502. The degree of common

variance among nine variables is miserable. It means the factors extracted will

account for fair amount of variance but in substantial amount.

66

Table-2

Communalities

Initial Extraction

Increase in sale 1.000 .639

Customer Relationship 1.000 .653

Offers 1.000 .752

Packaging 1.000 .626

Visibility 1.000 .561

Customer Attraction 1.000 .764

Policies 1.000 .688

Up gradation 1.000 .813

Security Amount 1.000 .813

Purity 1.000 .670

Extraction Method: Principal Component Analysis.

Interpretation- The total proportion of the variance by the five factors is known

as communality.

Note- In column initial values shows that initially we presume that the variable

is standardized to have a standard deviation is 1.And the variance of extracted

values are .639,.653,.752,.626,.561,.764,.688,.813,.813,.670.

67

Table-3

Total Variance Explained

Component

Initial Eigen valuesExtraction Sums of Squared Loadings

Rotation Sums of Squared Loadings

Total% of

VarianceCumulat

ive % Total% of

VarianceCumulat

ive % Total% of

VarianceCumulat

ive %

1 2.206 22.062 22.062 2.206 22.062 22.062 1.849 18.495 18.495

2 1.568 15.677 37.740 1.568 15.677 37.740 1.477 14.772 33.267

3 1.152 11.517 49.256 1.152 11.517 49.256 1.370 13.704 46.972

4 1.041 10.407 59.664 1.041 10.407 59.664 1.221 12.208 59.179

5 1.013 10.128 69.791 1.013 10.128 69.791 1.061 10.612 69.791

6 .897 8.968 78.759

7 .771 7.714 86.473

8 .651 6.509 92.982

9 .400 3.997 96.979

10 .302 3.021 100.000

Extraction Method:

Principal Component Analysis.

Interpretation- As it is shown in the table the initial five columns has the Eigen

value more than 1 which shows it has five factors which have variance value

more than 1.

Note- Factor 6 to 10 Eigen values are less than 1 & therefore explain less

variance that a single variable.

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Table 4

Component Matrixa

Component

1 2 3 4 5

Increase in sale -.452 -.352 .151 .490 .220

Customer Relationship

-.581 .360 -.061 -.098 .415

Offers .182 -.023 -.263 .277 .757

Packaging .678 .317 -.189 .048 .164

Visibility .081 -.643 -.341 -.153 .041

Customer Attraction .764 .392 .057 -.145 .058

Policies -.453 .504 -.003 .390 -.277

Up gradation -.361 .313 .494 -.494 .311

Security Amount .276 -.511 .678 -.041 .119

Purity .412 .182 .444 .520 -.006


a. 5 components extracted.

Interpretation- Component matrix shows the relationship of each variable with

each factor.

Example- Increase in sale has the highest factor loading in fourth factor, which

shows it is highly correlated with fourth factor and less correlated with all other

four factors.

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Table -5

Rotated Component Matrixa

Component

1 2 3 4 5

Increase in sale -.738 .073 -.042 .153 .251


-.236 -.398 .613 -.075 .241

Offers .041 .018 -.006 -.005 .866

Packaging .677 -.019 -.191 .172 .318

Visibility -.129 .271 -.359 -.573 .119

Customer Attraction .821 .135 -.041 .247 .097

Policies -.262 -.635 .091 .413 -.196

Up gradation -.011 .116 .886 .021 -.115

Security Amount -.117 .872 .022 .186 -.054

Purity .126 .211 -.178 .753 .101


Rotation Method: Varimax with Kaiser Normalization.

70

Rotated Component Matrixa

Component

1 2 3 4 5

Increase in sale -.738 .073 -.042 .153 .251


-.236 -.398 .613 -.075 .241

Offers .041 .018 -.006 -.005 .866

Packaging .677 -.019 -.191 .172 .318

Visibility -.129 .271 -.359 -.573 .119

Customer Attraction .821 .135 -.041 .247 .097

Policies -.262 -.635 .091 .413 -.196

Up gradation -.011 .116 .886 .021 -.115

Security Amount -.117 .872 .022 .186 -.054

Purity .126 .211 -.178 .753 .101

a. Rotation converged in 13 iterations.

Interpretation1- Factor 1 is highly associated with increase in sale, packaging

and customer attraction; these three variables have major effect on factor 1.

Interpretation2- Policies and security amount comes under factor 2.

71

Interpretation3- Customer relationship and up gradation comes under 3 factor.

Interpretation4- Purity and visibility comes under factor 4.

Interpretation5- Offers comes in factor 5.

Table -6

72

Component Transformation Matrix

Component

1 2 3 4 5

1 .769 .402 -.433 .181 .164

2 .472 -.630 .427 .444 -.030

3 -.150 .603 .423 .586 -.302

4 -.404 -.205 -.505 .649 .344

5 -.021 .192 .441 -.071 .873


Rotation Method: Varimax with Kaiser Normalization.

Here the value of KMO statistics 0.502 is greater than 0.5. Thus, factor analysis

may be considered an appropriate technique for analyzing.

On the basis of Eigen value approach, only the factors with Eigen values grater

than 1.0 are retained; the other factors are not included in the model. An Eigen

value represents the amount of variance associated with the factor.

By comparing the varimax rotated factor matrix with the unrotated matrix, this

simplifies and enhances interpretability. Whereas three variables correlated with

factor 1 , two variables correlated with factor2,3,4 respectively and 1 variable is

associated with factor 5. Naming of the factors is given as improvement, norms,

changeability, appearance and offers.

CHAPTER 4.8

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Crosstabs1

Table1:-Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

salincrs * offer 48 96.0% 2 4.0% 50 100.0%

74

Table 2:salincrs * offer Cross tabulation

Offer

Total1 2

Salincrs 1 Count 12 10 22

Expected Count 11.0 11.0 22.0

% within salincrs 54.5% 45.5% 100.0%

% within offer 50.0% 41.7% 45.8%

2 Count 12 14 26


% within salincrs 46.2% 53.8% 100.0%

% within offer 50.0% 58.3% 54.2%

Total Count 24 24 48


% within salincrs 50.0% 50.0% 100.0%

% within offer 100.0% 100.0% 100.0%

Interpretation- 12 out of 22 respondent agree with this that if retailers increase the

offers sale will increase which is the 54.5% of total respondent.

On the other hand 10 out of 22 respondent says that offers has

no effect on sale on increase.

75

Crosstabs2:

Table3:Case Processing Summary

Cases

Valid Missing Total


Increaseinsale * Policies

50 100.0% 0 .0% 50 100.0%

Table 4:

Increaseinsale * Policies Crosstabulation

Count

Policies

Total1 2

Increaseinsale 1 30 7 37

2 12 1 13

Total 42 8 50

Interpretation:- Out of 50 respondents 30 says with good policies sale will also

increase.

On the other hand 12 respondents says with increase in sale good policies will

decrease.

.

76

Crosstabs3

Table5: Case Processing Summary

Cases

Valid Missing Total


Increaseinsale * Visibility

50 100.0% 0 .0% 50 100.0%

Table6:-

Increaseinsale * Visibility Crosstabulation

Count

Visibility

Total1 2

Increaseinsale 1 36 1 37

2 12 1 13

Total 48 2 50

Interpretation:- 36 respondent says with product visibility sale will increase.

On the other hand 12 respondent says with increase in sale visibility will reduce

Crosstabs4:

77

Table 7:Case Processing Summary

Cases

Valid Missing Total


Increaseinsale * Upgradation

50 100.0% 0 .0% 50 100.0%

Table8:

Increaseinsale * Upgradation Crosstabulation

Count

Upgradation

Total1

Increaseinsale 1 37 37

2 13 13

Total 50 50

Interpretation:- 37 Respondent says with up gradation in visi sale increases.

On the other side 13 because of increase in sale up gradation of visi will reduce.

CHAPTER 5:- FINDINGS AND CONCLUSION

78

The research is done on 50 retailers in Jhansi region, the target sample consist of

different type of respondents. The responses of respondents analyzed and it is

found that different variable affect the sale and consumer preferences while

buying a Pepsi product. After visiting more than 50 outlets I have found that

there is main reason of visi cooler impurity is water pouch, which is more

profitable to retailer in comparison to PepsiCo. Products.

According to visi strength in market like Sadar, Elite, Medical I found that visi

size of 400 liter is in more demand among the retailers. Although most of the

retailers have the 220 lit. Visi but they want to replace it with 400 lit. with some

amount of security.

Some of the retailers have agreed with this fact that increase in sale has a

positive relationship with offers given by the company.

Most of the customer attract to the packaging of the product. Visibility of

product also attracts to the customer and it is helpful in increasing the sale of the

product.

Today customer is not brand loyal so that if the product, which is visible to the

customer on retail, store consumer preference will change d according to that.

The study shows that the commitment of supplying gift items or incentives is not

carried out on scheduled time & replacement of damaged or breakage goods.

Number of route vehicles for delivery of goods is less than the required one for

proper coverage of whole area of Jhansi. Thus just I time and efficient delivery is

affected.

Services after sales of Pepsi is not up to the satisfaction level because, I found

that few retailers are active in display of visi cooler and advertisement glow sign

boards provided by the company. But in the few outlets display system is out of

order or not properly working for the last few months, thus Pepsi management

being causal in this area.

79

Summer season April to June is the peak season of selling of soft drink and other

energy products. At this time it is completely dependent on the retailers that

which brand has offer to the customer. Although the company has been able to

satisfy the retailers. The company must take the immediate step in order to

resolve its dispute with these retailers.

It was also found that the schemes that are brought up in the market by Pepsi

every couple of days is not making much effect on sale.

CHAPTER 6:- RECOMMENDATION

80

1.Cold drinks are a kind of product for what very less consumers are brand loyal,

so sale of cold drink has a great influence of visibility. That’s why PepsiCo.

must send their representative in every two or three days time period for

checking whether visi cooler is placed in shop and restaurant from where it is

visible to every consumer or not.

2.During survey time I found almost every retailer has problem regarding with

space so that visi cooler, which company give them must be designed in a

manner so that it occupied less space.

3.Most of the retailers are complaining about non-fulfillment of commitment

regarding their leakage and breakage. Company should make sure that retailers

get fulfill their commitment on this issue so that they will be satisfied.

4.Proper feedback system should be develop by its officials & insure a randomly

visit of outlet by them. It will help to build a strong & healthy relationship

between company & retailer.

5.PepsiCo. should try to some credit facility to the distributors & retailers so that

they can bring brands more than their credit worthiness and try to sell maximum

number of SKU from their outlets.

6. On the basis of factor analysis we can say very distinctly factor, which comes

out like appearance of product is really very helpful in changing the perception

of the customer by which sale will increase.

7. All the factors like changeability, offers, norms and improvement are really

very necessary to satisfy retailers as well as customers.

CHAPTER 7:- LIMITATIONS OF THE STUDY

81

1. Since the product under study was consumer goods, which requires a large

sample to have a correct study, a sample size of 50 respondents was too small for

it. But time did not allow researcher to have a large sample and also to manage a

large sample would also be difficult by researcher alone.

2. Mostly stress was given to collect on primary data, as it was difficult to collect

secondary data from organization & distribution.

3. Weather condition was not favorable.

4. Some of the respondents were not co-operative and many of them seem to be

having no interest.

5. It is impossible to find out the problem faced by PepsiCo in a time span of 2

months.

6. Area was specified.

7. It is extremely difficult to persuade retailer to respond to questionnaire.

8. The retailer knows us as people from Pepsi there by the responses could be

biased.

9. The time allowed for the project was short. It was impossible to study deeply

in that short period.

82

CHAPTER 8:- Bibliography

Kotler, P., Keller, Koshy, A. and Jha, M., Marketing Management: A south

Asian Perspective, 13th Edition, Pearson Education.

Malhotra, N.K., and Dash, S. (2009), Marketing Research An Applied

Orientation, Pearson Education.

www.rjcorp.in

www.pepsiindia.com

www.pepsizone.com

83

http://www.pepsizone.com/

http://www.pepsiindia.com/

http://www.rjcorp.in/

CHAPTER 9:-

ANNEXURE:

1. Name of the retailer:2. Do you own visi cooler

(i)Yes (ii) No

3. Which company’s visi cooler do you have?

(i) Pepsi (ii) Coke (iii) Others

4. Do you think visi cooler helps in increasing sale?

(i) Very high increase in sale (ii) increase in sale (iii) average

(iv) Decrease in sale (v) decrease in sale very high

5. Retailers prefer to have;

(i) Pepsi (ii) Dew (iii) Slice (iv) Others

6. Pepsi maintains customer relationship: Rate 1-5 (1 is highly satisfactory & 5 is highly dis-satisfactory)

(i) 1 (ii) 2 (iii) 3 (iv) 4 (v) 5

7. Pepsi offers are better and attractive then others: Rate 1-5(1 is best & 5 is worst)

(i) 1 (ii) 2 (iii) 3 (iv) 4 (v) 5

8. Pepsi new packaging strategy attracts you to keep huge stock: Rate 1-5 (1 is highly attract)

(i) 1 (ii) 2 (iii) 3 (iv) 4 (v) 5

9. Pepsi visi cooler helps to maintain or attracts huge customers: Rate 1-5 ( 1 is highly attracts)

(i) 1 (ii) 2 (iii) 3 (iv) 4 (v) 5

10. You follow planogram policy of Pepsi: Rate 1-5 (1 is strictly following)

(i) 1 (ii) 2 (iii) 3 (iv) 4 (v) 5

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11. New planogram policy of company helps to get more customers: Rate 1- 5 (1 is Highly and 5 least)

(i) 1 (ii) 2 (iii) 3 (iv) 4 (v) 5

12. Is retailer retaining visi cooler pure: Rate 1-5 (1 is retaining visi pure strictly)

(i) 1 (ii) 2 (iii) 3 (iv) 4 (v) 5

13. Would you like to upgrade your visi cooler with depositing security amount?

Rate 1-5 (1 is highly agree and 5 is highly disagree)

(i) 1 (ii) 2 (iii) 3 (iv) 4 (v) 5

85

a study on

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