1

CHAPTER-1

INTRODUCTION TO

STUDY

2

1.1. Introduction

“Good marketing is no accident, but a result of careful planning and

execution. Marketing practices are continually being refined and reformed in

virtually all industries to increase the chances of success. Marketing

excellence is rare and difficult to achieve. Marketing is both “art” and

“science” –there is constant tension between the formulated side of

marketing and the creative side.”

India with a population of more the 105 crore is potentially one of the largest

consumer markets in the world with urbanization and development of

economy, tastes and interests of the people changes according to the advance

nation.

Beverage industry is one of the fast growing industries in India. It can be

divided into two sections i.e. carbonated and non-carbonated. The

carbonated drinks can be further classified into Cola, Lemon, Orange,

Cloudy-Lemon segments etc.

Marketing includes all the activities like promotion, distribution, advertising

etc. to fulfill the demands of all segments of consumers. Marketing is also

convert social needs into profitable opportunities. So this topic provides all

the essentials to the theoretical knowledge with practical knowledge and to

inculcate the efficiency. It is also a requirement for the company to improve

its service and product quality to achieve the ultimate goal.

Marketing is about winning this new environment. It is about understanding

what consumer’s wants a supplying its more efficiency and more

conveniently.

India where more than 50% of the total population exists below poverty line

the consumer can’t afford such high price for soft drinks. As a result the

trading activities of the soft drinks industry are concentrated in and around

3

big cities and town where the purchasing power of population is considered

comparatively high.

Soft drinks industries in India has annual sale of about 5000crores, with per

capita consumption of soft drinks at a low of eight bottles per annum is due

to price factor.

So, marketing is both philosophy and technology. It is technology because it

suggests ways and means for effective production and distribution of goods

and services in the market to give maximum satisfaction to the consumer.

In this regard the marketing management with have to apply to marketing

technology in the conceptual philosophy of a system. It is the process of

system analysis in the marketing management for effective research and can

be defined, “systematic objective and exhaustive study of tasks relevant to

any problem in the field of marketing”.

4

1.2. OBJECTIVE OF STUDY

Our main objective of the study on this project was to “To compare the

stock keeping unit (SKU) of PepsiCo with its competitor Coco-cola”.

Following are the some of the main objective of our report:

To test the effectiveness of the distribution network.

Comparative study of PepsiCo product availabilities in the market

with its main competitors.

To find out the market share of the different competing Brands in

the Beverage industry.

To know the importance of availability & visibility of product and

chiller.

To check the capacity of chiller of Pepsi and its competitors.

To check the Distribution of SKUs of PepsiCo and its competitors.

Selling and Monitor distribution of Beverages.

To provide the useful information to the “PepsiCo” regarding its

competitors.

Conduct Every Dealer Survey of the assigned Market.

To know other promotional measures that would be effective in

increase share.

To know the suggestive steps that would be beneficial to PepsiCo

in order to improve its distribution network.

Marketing of PepsiCo Products.

Looking to the problem of retailers regarding PepsiCo products

5

1.3. JOB ASSIGNED

To visit every dealers and retailers store where there is dealing of

soft drinks.

To know how many carats of Pepsi and Coke are been used by

each dealers and retailers.

To know SKUs of each dealers and retailers.

To take order of product from retailer.

To check the capacity of chiller of Pepsi and its competitors.

To know type and size of VISI Coolers used by retailers and

dealers.

To know their grievances, if any.

KEY RESPONSIBILITIES

Key responsibility is to take care of my account under my assigned

area.

Persuade retailer to sell PepsiCo product.

Convince retailer to transform the Visi- cooler as per his

requirement.

To have proper check on their SKU.

To take orders of soft drinks on behalf of PepsiCo.

Delivering the order on time.

Proper distribution of product.

6

1.4. Importance of study

Cold drinks were started with the idea of quenching the thirst of the

persons traveling. It was also felt that reliable good water was not

available everywhere. So people would really on their packed bottle and

with this idea its makers made these drinks available mostly, at those

places where water was not available i.e. on highways and long distance

trains.

But slowly and slowly with its beautiful taste these become very popular

and now they are available not only in the market and street corners, but

also people have started keeping it in their house.

The credit of popularizing the soft drink goes to Coca Cola. This was the

drink which is liked by all ladies, gents and children. Now day’s soft

drinks are quenching thirst looks more often; they are taken due to habits.

Gold Sport is considered as the first branded soft drinks, all empowering

Coca Cola faced competitions and its euphoric image built up in the

western countries helped it get ready clientele and clamor. Parle Export

Pvt. Ltd. Is regarded as the first Indian Company introducing Limca a

leman drink complementary to it this has also introduced Cola Pep one

which was withdrawn in the face of tough competition from Coca Cola.

When Coca Cola bid a Farwell in 1977, Indian market was open for

various new forward publishing different brands in the markets. This is

Indian market where there was no competition and high voltage

advertising was on each one was trying their best to become number one

company with ‘A’ class product in the field of Soft Drink business. Now

after a long gap government of India had given permission to Coca Cola,

which joined with Parle to do business in India. They are trying their best

to regain prestige which it had before. The much rival of Parle is Pepsi an

7

American concern. It started business on the Indian soil just a few years

ago.

Now Pepsi is going all out to prove that they are the best.

1.5. Scope

The geographical scope of my study is confined to Patna.

The bull’s eye is to have a cognizance of the level of satisfaction

regarding the distribution network of PepsiCo product to the depot

and retailer.

Limitations Retailers are reluctant to provide the information regarding the

sales volume and stock.

Some retailers in were not co-operative in their approach.

Retailers are not fully aware of the new schemes offered by the

Company.

Lack of time duration for the proper administration of research as

time duration of 60 days was not sufficient for the research.

Lack of financial resources as the researcher has to find his study

by his own financial sources.

Insufficient research experience.

Indifferent behavior of the retailers exhibited at times.

8

CHAPTER-2

OVERVIEW OF

INDUSTRY

9

2.1. History of PepsiCo

PepsiCo is a USA based company having its headquarters at New York

with the net worth of $30-40 million. The average sales of the company

are approx. 90 million bottles per month. Pepsi made it first international

move in Russia in 1959. During the Khrushchev era, within 32 years

Pepsi emerged as the biggest competitor for Coca Cola. Pepsi is available

in 155 countries.

In any soft drink, on the globe Pepsi food is one of the largest soft drink

companies in the world with its headquarters in New York. It was

invented by Pharmacist Culab D. Baradham in 1898 to cure the disease

“Dyspepsia”. It is from this word that its name was related to Pepsi. Soon

it entered the American market as soft drink, which at that time mostly

dominated by Coca Cola, but soon Pepsi able to dominate the Cola

market, and there after it never looked back. Pepsi and Coca Cola are

engaged in ferocious cola war that has taken the whole world by storm.

Pepsi entered the Indian soft drink in Kanpur in 1988 and began its

production in May 1990 and soon it was giving the local contenders run

for their money in soft drink market. It comes out with dazzling

marketing innovation that rocked the cola market, like selling the product

through function Pepsi outlets. Its advertisement agency was “Hindustan

Thomson Association” (HTA). Its advertisement budget for 1995-1996

was valued at Rs. 24 crores which is likely to be increased manifold in

coming years.

Pepsi food is one of the largest and best foreign investments in India. Till

today it has invested Rs. 500 crores in India to develop the local market.

Pepsi has distributed exclusive franchises in India to bottle its total

product. There are 28 bottling plant of Pepsi in India. Some are directly

controlled by Pepsi and rest is under various franchisees.

10

Pepsi stands 51st position among the fortune 500 companies of the world.

Its total capital is approx. $3000 crores and total sales annually is worth

$37 crores. Its total profit in the year 1996-97 was worth Rs. 458 crores

approx. The total number of employees engaged in the business is 45.25

lakhs globally.

2.2. LUMBINI BEVERAGE PVT. LTD.

Lumbini Beverages Pvt. Ltd is franchisee of PepsiCo. India. Lumbini

Beverages Pvt. Ltd, a rupees 25crores unit was promoted by the family of

KHILANI in the year 1996 with the proper infrastructure approved by

PepsiCo Headquarter and the unit went into production, subsequent and

marketing operation from 1997. Mr. Ravi Khilani is MD of this company

the plant has 57 production staff 30 executives and 32 team members

within marketing and seller functions during the pick session i.e.

Between April- July, the no. of production staff at times is increased to

take care of increased production functions.

The unit has capacity of bottling 400-600 bottles per minute or3000

crates of 24 bottles on a daily basis, i.e. when production schedule is on

through out the day with three shift production system. The plant follows

international quality audit standard for the purpose of maintaining quality

controls in the quality of the product because the quality control function,

by far is the most important criteria for purpose of competing in terms of

quality in the contest of the market competition.

This bottling unit at Hajipur has created a source of employment for a

large no. of population residing in the Bihar and has also come out with

quality/treated water resources, which is now being thought of diverting

in to nearby agriculture sector as an ongoing source to facilitate of

management. This unit in the year to come should one of the most

11

important industrial zones in this part of the country and this reality

manufacturing and marketing unit should be a set of attraction as far as

commercial activity are concerned.

Profile of LBPL

Company land area : 12 acres

Location and authority : EPIP, Industrial Area, Hajipur

Name of Managing Director : Mr. Charan Khilani

Name of the Directors : Mr. Ravi Khilani & Mr.Manoj Khilani

Name of Executive Director : Mr.Ashok Salaria

Name of CEO : Mr. G.P Singh

Name of FM : Mr. V.Mahesh

Name of HR manager : Mr. Bhupendra singh

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

Factory license no. – 66750/VLI

Date: 16.08.1997

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

Capacity : 1500 bottles per minute

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

Slice, Aquafina

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

Control board : No. 1877. Date – 07.04.1997

12

2.3. MISSION AND VISION OF PEPSICO

PepsiCo’s mission is “to be the world premier consumer Products

Company focused on convenient food and beverages. We seek to produce

healthy financial rewards to investors as we provide opportunities for

growth and enrichment to our employees, our business partners and the

communities in which we operate. And in everything’s wed, we strive for

honesty, fairness ail,

At PepsiCo, we believe that as a corporate citizen, we have a

responsibility to contribute to the quality of life in our communities. This

philosophy is expressed in our sustainability vision which states: -

“PepsiCo’s responsibility is to continually improve all aspects of the

world in us operate –environmental, social, and economical—creating a

better tomorrow than today.”

Our vision is put into action through programs and focus on

environmental stewardship, activities to benefit society, and a

commitment to build shareholder value by making PepsiCo a truly

sustainable Company.

13

2.4. OVERVIEW OF THE INDUSTRY

2.4.1. History of Pepsi-Cola industry

The Pepsi-Cola story itself begins with a drugstore in

New Bern, North Carolina, and a pharmacist named

Caleb Bradham. Bradham's aim was to create a

fountain drink that was both delicious and healthful in

aiding digestion and boosting energy. It would be free

of the impurities found in many bottled health tonics, and it would contain

none of the stronger narcotics often added to popular fountain drinks.

As most pharmacies in 1896, Bradham's drugstore housed soda fountain

where the small-town clientele would meet to socialize. Bradham's

establishment even featured a kind of primitive jukebox, which for a nickel

would entertain the listener with the latest musical selections rendered by

violin or piano or both It was at such convivial gatherings that Bradham

would offer his latest concoction. Over time, one of his recipes became

known as Brad's Drink. A member of the press declared,

"It has sparkle and just enough acidity to make it

pleasant." Soon its popularity would exceed the

boundaries of New Bern. The cellar of Bradham's

drugstore served as the original site of Pepsi-Cola syrup

manufacturing. Electing to start his new business on a

small, manageable scale, Bradham based his operation on familiar territory.

Ingredients were hauled downstairs to cramped quarters where they were

mixed together and then cooked in a large kettle. The syrup was

subsequently poured into one-gallon jugs and five-gallon kegs to be shipped

to customers. By 1902, the demand from surrounding drugstores increased

so dramatically it dawned on Bradham that Pepsi-Cola was something

special. On December 24, 1902, he filed incorporation papers with the state

14

of North Carolina; in these, he indicated his plans for corporate branches in

Virginia, Maryland, Pennsylvania, and New York. PepsiCo, Inc. is

currently one of the most successful consumer products company in the

world with annual revenues exceeding $30 billion and has more than

480,000 employees. PepsiCo, Inc. began as a successor to a company

incorporated in 1931, known as Loft Inc. Once known as PepsiCo Cola,

the company expanded its business and adopted its current name, PepsiCo,

after a merger with Frito-Lay in 1965. This merger dramatically increased

PepsiCo's market potential and set the foundation for the company's

tremendous growth. PepsiCo’s products are recognized and are most

respected all around the globe. Currently, PepsiCo divisions operate in three

major US and international businesses: beverages, snack foods, and

restaurants. In each of these businesses, PepsiCo has attained a leadership

position as being the world leader in soft drink bottling g, the world largest

snack chip producer, and the world largest franchised and company operated

restaurant system. The corporations increasing success has been based on

high standards of performance, marketing strategies, competitiveness,

determination, commitment, and the personal and professional integrity of

their people, products and business practices. PepsiCo's overall mission is to

increase the value of our shareholders' investments through sales growth,

investments and financial activities. PepsiCo believes their success depends

upon the quality and value of their products by providing a safe, whole

some, economically efficient and a healthy environment for their customers;

and by providing a fair return to their investors while maintaining the

highest standards of integrity.

15

2.4.2. PepsiCo headquarter

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 august Rodin,

henrys Laurens, Henry Moore, Alexander Calder, Alberta Giacometti,

Renaldo pomander and Claes Oldenburg focus the collection of works on

major twentieth century art, and features works. The gardens originally were

designed by the world famous garden planner, Russell page, and have been

extended by François goffinet1. The grounds are open to the public, and a

visitor's booth is in operation during the spring and summer.1990 saw the

coming of the multinational company Pepsi entering the Indian market. 11

years after the exit of coca cola. It had name, fame and edge of being one of

the best in the game and it also offered stiff competition to parley and coke.

Pepsi Cola Company founded by ClebBadham in 1890 at north Crolina in

USA now it is ked 86th

(1998) in the world with the asset of around $25000

million, having its head quarter at Atlanta. Its CEO is roger enrico and Pepsi

co. India holding chairman is Mr. Rajiv Baksi. Pepsi co. India’s is at

gurgaon. Presently is operating in 196 countries. In India it has 34 bottling

plant of them 8 are cobo and 26 are fobo of which one in Trity Drinks Pvt

Ltd.

16

2.4.3. SOFT DRINK INDUSTRIES IN INDIA

A soft drink is a non-alcoholic beverage. It is artificially flavored and

contains no fruit or pulp. India with population of more than 100 crores is

potentially one of the largest consumer markets in the world after China.

The consumer market can be defined as the market for products and services

that are purchased by individuals as households goods for their personal

consumption. Soft drink is a typical consumer product purchased by

individuals to quench thirst and secondly for refreshment. Searching for the

point of Indian soft drinks we first document on Gold Spot, this was the first

brand soft drink in India. It was introduced by PARLE during later part of

40’s.

Cola giant, Coca-Cola was the first foreign soft drink to be introduced in

India in 1965, Coca-Cola make a very good beginning and dominated the

whole scheme right from the word go. It (Coca-Cola) faced no competition

at that time. COCA COLA entered India in the year 1993 in collaboration

with PARLE INDIA LTD.

The marketing people did not even receive to publicize Coca-Cola for it sold

first like probability not-cakes. This extraordinary success of soft drinks can

be attributed to the following factors:-

Absence of contemporary competitive brand.

Euphoric image built up in the Western countries proceeded the entry

into Indian Market; and

Indians are very found by nature of foreign goods, services etc. due to

prolonged foreign rules.

Parle Exports (P) Ltd, later in 1970 introduced Limca, Lemony Soft drinks.

Before Limca introduce, they had tentatively introduced Cola, Pepino, which

they had to soon withdraw in the face of battering confrontation with Coca-

Cola.

17

Three of four groups of Indians companies who had the required production

capacity started their own brands of Cola, Lemon, Orange, but failed to

achieve their goal on a national basis. India always has love and hate

relationship with MNC’s which gave a significant opportunities to soft drink

industries in India when Coca-Cola decided to windup its operation in 1977

rather than bowing to the Indian government insisting on:-

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

was being wasted.

Manufacturing of the top-secret concentration in India.

Disclose of the chemical composition of the essence.

This left a large vacuum in the popular soft drink market, and a vista was

opened to any company with the requisite, technical, marketing and

organizational skills.

The exit of Coca-Cola from India in 1977 accelerated the growth of several

Indian Soft Drink. New soft drink in the form of Tetra pack entered the

market among Frooti, Jump-In and Treetop were the prominent once. Till

1977 their equipped bottling plants and the distribution network a longing to

be of no use. It took them one year to develop new formula to survive and

gradually came up with Campa, Lemon, Orange and Cola that order.

However Parle, the pioneer in the soft drinks, blazed its way to national

prominence with their product “Thumps Up” bearing the slogan “Happy

Days Are Here Again”. This particular slogan helped to win over the

loyalists or addicts to Coca-Cola, who was in the state of “Cola Shock” or

Cola Depression. Soon the Indian Soft drink industry started at a

phenomenal rate, and all Parle Products Gold Spot, Limca and Thumps Up

became the brand leader in their own segment.

In spite of all these, the drink market still has large gap, as claim by soft

drink manufacturers. To fill these gaps there are many soft drinks

18

concentrate and squashes flooded the market. The Indian soft markets

basically offered three flavours i.e. Orange, Lemon and Cola.

PEPSI – The Indian Experience

Previously there were two ads. Tags “Yehi Hai Right Choice Baby”,

“Nothing Official about It” & “Yeh Dil mange More”, which immediately

ring a Bell – it’s to be a Pepsi. But today this ad. Tag has been changed and

now it’s "Yeh hai Youngistaan MeriJaan!"

Pepsi is a short span of its operations in India has found a place in hearts and

minds of the Indian Consumers. The success has primarily been due to the

innovative and passionate Indian team which has been built over the years.

Pepsi is a trendsetter managed and run by Indians, where important

decisions are taken locally.

Pepsi started its operations in India in 1989 and since Pepsi Co. has set up a

fully integrated operation India viz. manufacturing, research and

development, marketing, distribution and franchising covering

fruit/vegetable processing, export, snack foods and beverages. In 1993 Pepsi

Co. set up a hold company to further accelerate growth the future through

new initiatives and joint ventures. Pepsi Co. fully committed to India and the

national objective of development of technology and accelerating exports

and employment. It has brought in over $500 million in foreign exchange as

well as technology, which is used for its global network by way of royalty,

know-how of dividends.

Pepsi Co. has a turnover $25 billion, half of which comes from beverages

and the other half from the snacks foods divisions. The beverages arm of the

Pepsi Co. is Pepsi Cola Company and the snacks foods company is called

Frito – Lay Inc. The year 1998 is the centennial year of Pepsi.

19

Beverages:

Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur,

Punjab, with an investment of $ 5 million the state of the art Plant houses a

world – class laboratory where soft drinks from all over the world are tested.

This concentrate plant supplies Pepsi, 7Up, Team, Miranda, Orange,

Apple & Lemon flavors to all the Pepsi Bottling plant in South Asia.

Pepsi has 40 Bottling plant in India, out of which 16 are company owned

and 24 are owned by Indian franchisees, Pepsi Co. has invested heavily on

up gradation of these bottling plants and has put 5 green fields projects in

backward areas such as Jainpur and Bazpur in U.P. Bharuch in Gujarat,

Sonarpur in West Bengal and Naclamangala in Karnataka.

New project are coming up in Maharastra and Tamilnadu. In addition to the

Company’s own Bottling Operations (COBO), Pepsi has 24 Franchisee

Owned Bottling Units in India. These franchisee manufacturers are also

planning to install substantial additional capacities. Pepsi Co.’s franchisees

are amongst the best in the Pepsi world and the 1998 two Indian Franchisees

were chosen for being the Bottler of the Year amongst all International

Bottlers.

Juices:

Pepsi Co. plans to launch juices in a bog way in India, there by helping the

farmers in fruit procurement. Pepsi Co. Agriculture Scientists has

undertaken research on Mango, Guava and Oranges and these fruits would

be the priority area for the juice launch in India. Presently Pepsi has one

juice brands Slice, which are presently mango juice brands. Pepsi Co. also

has bottling lines in most of the plants.

.

20

Marketing mix followed by Pepsi:

The tools of marketing mix are combined in such a manner that they give

maximum mileage to the product from the factory to the consumer’s hand.

Product

Price

Place

Promotion

Position

Probing

Perpetual Mapping

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

enable concentrated effort of marketing activities in different scattered

market, for effectively setting the entire market is broken down into the

following segments.

Route market

Home market

At work market

Route market:

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

eating outgoing to and from work, in amusement center etc.

Home market:

Outlets in this market cater to people buying predominantly for home

consumption, either by case or loose bottles.

At work markets:

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

attempt is always made to make soft drinks readily and conveniently

available all day long while people are actively working.

21

2.4.4. Market growth rate and demand trend

The Soft Drink industry was estimated at 7.5bn bottles in FY10. Volumes

have been growing at 14-15% pa in the last two years. Per capita

consumption in India is among the lowest in the World at 6 bottles as against

17 in Pakistan and 21 in China and Sri Lanka. Growth has slowed down in

the current year to 8%, despite the low level of per capita consumption and

the industry is expected to register sales of 8.5bn bottles in FY12.

The demand for soft drinks is highly price sensitive. A study conducted by

NCAER has shown that a 10% increase in soft drink prices, leads to a

demand reduction of over 17%. Given the cutthroat competition, price

changes by any one player induce similar price adjustment by other players

too. Sales growth of the two large players have been driven by a high level

of promotions and price wars and increasing investments being made in

expansion of the distribution infrastructure. Both the leading players are yet

to make profits. The industry has received the largest amount of Foreign

Direct Investment in the country of almost Rs5.7bn (US$1.2bn). The

industry employs more than 125,000 people directly and indirectly.

Additional investment of Rs20bn in expected over the next three years, with

a potential to create additional 95,000 jobs directly over the periods of

marketing.

22

Logo change over years…

23

CHAPTER-3

PRODUCTION PROCESS

24

3.1. Production process

The process of manufacture of Aerated water (soft drink) like Pepsi brand

product is divided into mainly five parts such as

1. Water Treatment

2. Syrup Making

3. Bottle Washing

4. Filling

5. Testing of Product

1. Water Treatment: - Water treatment is very essential in soft drinks

plants as the nature and quality of water varies from place to place. To set

uniform and standard water the process of treatment is carried on. The

water taken out from bore well by the help of motor pump and pipe line

are collected in storage tank where is pre chlorinated by chlorinators and

by the help of pipe lines comes to treatment tank called coagulation tank

where to this water solutions of different strength of bleaching powder,

ferrous sulphate, hydrated lime are added through dosing pump to reduce

alkalinity, hardness, kill the bacteria .The chemical are mixed by

mechanical stripper and then the suspend mattress settle down as sludge

and clear water passes to retention tank. From this tank, the water passes

through sand filter containing fine sand and pebbles and carbon filter

containing granular carbon and finely through water polisher, micron

filter, and UV lamp to ensure clear and sanitary water for use. Further

water used in bottle washer and boiler need softening .for this purpose

,the water from storage tank ,after passing through two filter beds contain

fine sand and granular carbon respectively comes to pass through bad

resin were it is softened .this soft water is essential to use in and bottle

washer to reduce scale formation inside the machines.

25

2. Syrup Making:- For syrup making of particular brand, calculate

quantity of sugar water activated carbon and high flow super cell known

as filter aid taken in to sugar to enter steam and also filled by a motor

with agitator. Sugar syrup called raw-syrup is prepared by dissolving the

sugar with continuous stirring and heating by steam supplied by fired

boiler. This hot syrup by the help of pump is filtered through a filter press

attached with a series of quality filter paper to separate out carbon

particles. Clear hot syrup by the help of SS pipe lines passes through

water P.H.E. for cooling and the then another P.H.E. circulated by glycol

for further cooling. The chilled syrup comes to a mixing tank to use

calculating of sugar quantity by Brix Hydrometer, concentrate added and

mix thoroughly by a mechanical Stirrer fitted to the tank. This syrup is

now finished syrup ready for use. The concentrate mainly, the liquid part

are kept in a cold store, the temperature of finished syrup is also

maintained by air-conditioner. All the containers used for syrup making

are cleaned and sanitized by Soda-Bi-Crab, strong chlorine solution and

hot caustic soda solution.

3. Bottle Washing: Bottle washing is an important part in soft drink

plant. The empty durable and returnable bottle used are returned from

market in plastic carats are fed to a bottle washing machine (washer). The

machine has double end system with circular chain to carry the bottles.

Caustic soda Tri-Sodium Phosphate, Sodium Glausonate is adding to the

caustic by the supplied. The Caustic tank filled in with water heated by

steam supplied by the boiler. The empty bottles enter to the hot Caustic

tank in one end and after being cleaned by hot Caustic solution and

finally washed with water through spray jets fitted are discharged in other

end. The washed bottle proper inspections are SU 319 and SU 853 used

26

for conveyor cleaned and smooth running of chain carrying bottles. SU

260 and SU 773 is used for bottle cleaning, shining, and mold removing.

4. Filling: - Finished syrup and treated water lime are commixed to a

dosing pump which mixes syrup and water with ratio of 1:5 and the syrup

mixed with water enters to carbonator tank to mix CO2 gas, which is

preserved in cylinder for use. The cylinders are connected through CO2

manifold to tank to use requisite quantity of gas. To control CO2 pressure

and temperature of liquid; we used recording control (Taylor). The syrup

passed through a P.H.E. which is called itself by circulation of chilled

glycol supplied chilling F-22 gas used. The syrup being chilled easily

mixed with CO2 gas and enters to filter for bottling. The filter is

connected with filling valves and lift cylinders. The lift cylinder functions

by pressure of air supplied by an air composer. The syrup is known as

beverage in this stage is filled in the cleaned bottles which are durable in

nature and returnable by buyer filling machine (filter) by a counter

pressure of carbon dioxide gas. After beverage filled in bottle it goes to

the crowner where with the help of crown crocks the bottles are sealed

(crowned) to project the carbonation, flavor, outside contamination and

spoilage. The finished products are coded by a coding machine and

inspected properly by inspection light while passing through the conveyor

where finished product are accumulated enters to carat washer machine

and it is washed moves through the conveyor where finished product are

accumulated.

Then the products are kept in plastic carats which are durable in nature

and returnable by buyer, put on palates and sent to shipping for shipment.

The entire container in contact with syrup are properly cleaned and

sanitized by Soda-Bi-Carbonate, hot water, caustic soda solution and

strong chlorine does.

27

5. Testing of product:-Finally the finished syrup during bottle is

tested in laboratory to meet the parameters and also to get a standard and

quality products to maintain the standard and information and uniformity

in products the sugar contents and carbonation in the bottle are checked in

regular intervals by Brix-hydrometers, Refrectometer and pressure gauge.

The dead weight tested is used to calculate pressure gauge to know the

correct pressure. TA &Ph are tested by digital Ph meter. Electronic digital

balanced is used to weight chemical to conduct test in lab. The purity of

CO2 is checked by CO2 purity tester. The chlorine comparators. The

microbiology test of the product and water used in syrup making and

production are also done to ensure that the product is free from any

bacteriological contamination. To conduct the micro test hot sterilizer

incubator, autoclave, pads filter membranes, media are produced and

used.

3.2. The steps involved in the production process are-

First the fork lift supplies the empty bottles which are collected

from the distributions.

Then depalletising is done i.e. separating cases filled or empty

bottles from the wooden planks.

Uncasing is done by separating empty bottles from the cases/carats.

Empty bottles are then fed into the bottle washer where stream with

some chemical is used for washing.

Washed bottles are then send to the filler where premix (Composed

of syrup, treated water bulk CO2) is filled in it.

The whole concentrated is chilled with glycol before filling and

then crowning is done.

28

The filled bottles are passed through inkjet coder for printing price

and date.

Then again the filled bottles are send for final light inspection and

from there they are collected on a table.

Lastly the filled bottles are arranged in the crates (casing) and then

palletizing is done for storing it in the warehouse.

PREPARATION OF SYRUP

Treated water + Sugar + Flavor = soft-drink

3.3. Raw material used

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

Sugar

Flavor

Water

Carbon di oxide

Crown cork

Glass bottle

Plastic crate.

Sugar

High purity crystal sugar is required to produce the sugar syrup for soft

drink. The main supplier of sugar for Lumbini beverages Pvt. Ltd. is M/s

KCP Ltd. chennai. The usual requirement of sugar is around 800 gm par

carat for all flavors.

Flavor

Pepsi food Ltd. is supplying all essence of flavor for Lumbini Beverages

Pvt. Ltd. from their plant Chennai, Bhavnagar (Punjab).

29

Water

The required water of Lumbini Beverages Pvt. Ltd. is being met from the

high yielding deep boring well with pumps. Adding softening plant &

DM Plant so as to meet the required quality of water then treats the raw

water taken out from these well. Water quality is being strictly adhered

through regular sampling & analysis.

Carbon dioxide

Carbon di oxide gas of required purity is being carried on from Hindustan

Gas India Ltd. and also from IOC Patna and Barauni, as per requirement

of flavor. The usual consumption of carbon di oxide is 1 kg per 10 carats

in case of Pepsi, 1 kg per 5 carats of Soda water and the rest flavor 1 kg

per 114 carats.

Crown Cork

Lumbini Beverages Pvt. Ltd. takes crown cork from Manksic Crown Ltd.,

Bhopal and Ghaziabad respectively.

Glass Bottle

Lumbini Beverages Pvt. Ltd. takes flint and green glass bottle from

Hindustan National Glass Ltd. Tapovan (Hrishikesh).

Plastic carats

Lumbini Beverages Pvt. Ltd. takes plastic crates from Neelkamal Plastic

Ltd., Nasik and Supreme Industries Ltd., Nasik

30

3.4. Product manufactured

The product manufactured by “Lumbini Beverages Pvt. Ltd. are very limited

ranges as it is not independent to diversity its products. It is a unit of Pepsi

food Pvt. Ltd. which supplies concentrates for drinks. They are:-

Products Quantity Colour Flavour

Pepsi

Mirinda

Mirinda

Mirinda

7 Up

Mountain Dew

Slice

Lehar soda

Pet

Pet

Can

Aquafina

(Mineral Water)

300 ml, 200ml

300 ml, 200ml

300 ml, 200ml

300 ml, 200ml

300 ml, 200ml

300 ml, 200ml

300 ml

300 ml

1.5 lt.

2 lt.

330 ml

1 lt.

Brunt sugar

Sun-set

Tetrazine

Tetrazine

Colorless

Colorless

Sunset

Tetrazine

Brunt sugar

Brunt sugar

Brunt sugar

Colorless

Cola

Orange

Lime

Mango

Lemon

Lemon

Mango

Lemon

Cola

Cola

Cola

White

31

CHAPTER-4

ORGANIZATIONAL

STRUCTURE OF L.B.P.L.

32

Organizational structure of L.B.P.L.

An ideal organizational structure facilities management and the operation of

the enterprise and it help the organization in achieving its goal. In a simple

term in various parts or component are interrelated or interconnected and

this way it is the established pattern or relationship among various function

of the organization in the established manner.

The managing director holds the top position. At present, the managing

director of Lumbini Beverages Pvt. Ltd. is Mr. Charan Khilani. But the

overall policies regarding management decisions and all executives function

or performance look after by the day to day decision and general

administration as well as management. The MD has given the power of

attorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who is

well advised by the MD.

The director Mr. Ravi Khilani looks after all functional departments that

sales production, account, personnel and purchase. Though the manager all

the functional departments has specially designated as head of personnel

department.

Every department has to report directly to the managing director and is

responsible to his only for working in spite of this all departments is under

the control of the director Mr. Ravi Khilani. Because he is the Chief

Executive of the company cited earlier. The overall organizational structure

can be shown as:

33

BOARD OF DIRECTOR

MANAGING DIRECTOR

EXECUTIVR DIRECTOR

FINANCE PLANT P.A.M. H.R.

MANAGER MANAGER

MANAGER

SHIPPING

A/C SHIFT ENGINEER COORDINATOR H.R.

ASSISTANT

EXECUTIVE

WORKER /

A/C CLERK OPERATOR H.R.

ASSISTANT CLERK

ASSIS.

HOS

T.D.M. M.D.M

A.D.C. General Manager

C.E.

34

The marketing manager is in charge of all marketing activities i.e. sales

promotion, publicity and advertisement, marketing study and shipping. But

the main function of the marketing is to exercise the control over the channel

of distribution.

The marketing manager is assisted by sales executives, city sales executives

and rural sales executives and sales executive of shipping department as

follows:-

DIRECTOR

MANAGING DIRECTOR

HEAD OF SALES

T.D.M CITY SALES SALES SALES

A.S.M EXECUTIVES EXECUTIVES SUPERVISOR

Management

Trainee

35

CHAPTER-5

MARKETING MIX OF

L.B.P.L.

36

Marketing mix of L.B.P.L.

1. Product: -Product means the good and service combination of the

company offered to the target market. Company changes the sizes, variety,

flavor brand name of the product after one or two year.

2. Price: -Price is the amount of money which customers have to pay to

obtain the product calculates suggested retail prices that its dealers might

charge for sources. But dealers rarely charge the full sticker price.

3. Place:-They are mostly available in all place but easily available in the

Urban Market but not frequently found in Rural Market.

4. Promotion: -Promotion means activities that communicate the merit of

the product and persuade target customers to buy it. The measurement factor

to promote the Pepsi product is to increase good transportation in rural

market. If the Pepsi is available to capture the rural market then it is certain

that it will occupy first position of soft drinks industry.

37

5.1. Products manufacture by L.B.P.L.

Brand Pep

si

7up Mirin

da

Mountai

n dew

Laha

r

soda

Slic

e

Nimb

uj

Aqu

a

fina

Tro

pi

cana

200ml

250ml

300ml

350ml

500ml

600ml

1lit.

1.2lit.

2lit.

Tetrapack

200ml

Tetrapack

1lit.

Water

Carbonated product Juice based Juice

drink

38

Comparative Products

SL

No.

Major CSD Brands

Flavor PCI CCI

1. Cola Pepsi Coca-Cola,

Thums Up

2. Clear

Lime

7Up, Mountain

Dew Sprite

3. Cloudy

Lime Mirinda-Lime Limca

4. Orange Mirinda Fanta

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

companies try to substitute each-others product in the market. When a

company doesn’t fulfill the demand of market then other companies

substitute that product with their own product. In the market, offen it seen

that consumer demands a product according to his desire, but due to lack

of supply he switch over to substitute product. So, companies always

want to come out with substitute product for enlarging their market share.

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

substitute for 7UP and Mountain Dew, Fanta is substitute for Mirinda

& Limca is substitute for Mirinda Lime.

39

5.2. Price list of L.B.P.L

PACK MRP PRICE TO

RETAIL

CARBONATED SOFT DRINKS (CSD)

200 ML 10.00 212.00

200 ML 8.00 168.00

300 ML 12.00 258.00

300 ML SODA 6.00 130.00

600 ML 25.00 560.00

600 ML 27.00 606.00

600 ML 29.00 654.00

SODA 500 ML / 600 ML 12.00 264.00

1 LIT 35.00 376.00

1 LIT 38.00 420.00

2 LIT 53.00 441.00

2 LIT 59.00 491.00

2 LIT 65.00 543.00

CAN 250 ML 15.00 330.00

CAN 250 ML 18.00 402.00

CAN 330 ML 50.00 900.00

JUICE BASED DRINKS (JBD)

SLICE 200 ML 10.00 216.00

SLICE 250 ML 12.00 258.00

SLICE 500 ML 25.00 564.00

SLICE 500 ML 28.00 630.00

SLICE 1200 ML 55.00 612.00

SLICE TETRA 200 ML 12.00 328.00

SLICE 350 ML 22.00 498.00

NIMBOOZ 350 ML 18.00 402.00

WATER

AQUAFINA 1 LIT 16 152.00

40

5.3. Distribution channel of L.B.P.L.

To make its products available at the right places at the right time in the market,

the sales department of the company pays major attention on controlling the

channels of distribution. Single type of markets channel is maintained by the company right from its

pioneering stage. The nature of the channel is as follows:-

Company

Distributor Deopt Rural Distribution

Center

Interior Distribution

Center

Retailer

Consumers

At first the soft drinks supplied to the distributors directly. Retailers or owners of

any outlet cannot take the delivery from company. They have to take the products

from their respective or nearest distributor.

There are about 50 distributors and innumerable number of retail outlets operating

with the company in its entire market areas which contains total Bihar. In all the

important places of entire territory this company has its distributors.

41

These distributors selected on the basis of assurance given by them regarding the

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

on the basis of the financial position and reputation of distributor in the market. As

for example in appointing a distributor first engaged in soft drink business second

priority is given to those people who are in cigarette selling business. Depending

upon the market, each distributor in the initial stage has to deposit some security

money.

The retailers are selected by the distributor fixed criteria for the selection or

appointment or retailers from the side of the distributor. Any one like Panwala,

Cigarettewala or any other shopkeeper can have the stall for the sale of soft drinks

and they are called retailers or outlet owners. They have to give assurance to the

concerning distributor for better sale and at the time of taking delivery they have to

deposit the security i.e. the charges if the empty bottles with specified retailers

purchasing price. The charges if the empty bottles with specified retailers

purchasing price. The distributor at first has to seek the permission of sales

department for the number of cases of soft drinks required by them. After getting

the proper authority from sales department paying the requisite amount either cash

or demand draft.

Distributors:-

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

directly from the company. They have to take it from their respective or nearest

distributors. The distributors selected on the basis of assurance given by them

regarding minimum sales, which they have to maintain annually. The selection is

also done on the financial position and reputation of distribution in the market. As

for example, first priority is given to those people who are in cigarette business.

Depending upon market, each distributor in its initial stage, deposit some security

money. This amount varies between five thousands to the thousand. The

42

distributors, at first have to seek the permission of the sales department for the

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

the sales department, they take the delivery from the shipping department paying

the requisite either in cash or as demand draft.

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

They can be also dropped when they don’t follow the instructions given by the

company or when they charge high price or when they are engaged in black

marketing, loading etc. But the company has not dropped any of its distributors till

now.

The supply of soft drinks to the distributors depends upon the ups and downs in the

sales. But, in the initial stages, the distributors have to sell up to a minimum target

set by the company or as decided by an agreement between the company and the

distributors. In the last stages soft drink is supplied as and when demanded by the

distributors.

Retailers:-

The distributors select the retailers. There is no relation between the company and

its retailers. On the other hand there are no definite and fixed criteria for the

selection for appointment of retailers from the side of distributors. Any one like

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

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

concerning distributors for better sales and at the time of taking delivery they have

to deposit the security that is the change for the empty bottles with specified

purchasing price.

There is compulsion on the part of distributors to provide the transportation

facilities to their retailers IRRESPECTIVE OF SIZE OF MARKET. The

distributors and retailers are independent to sell as they want but are controlled to

some extent by the company also, as they have to give some assurance regarding

43

minimum sale. It happens so because they are given some incentives also. They are

fully independent to gear up the market, as they want.

The Retailers are categorized into three segments:

Grocers

Eatery

Convenience

5.4. Promotion

For increasing the market share and beating the competitors company provides

different schemes on different time. The schemes are of two types one for

Consumers and other for retailers.

Free Flavors sample to Retailers:-

Company offers few bottle flavors free to retailers on purchase of one carat of

flavor on some specific days. The free flavors scheme varies from one bottle to

many bottles.

Display Rack Scheme:-

This scheme is only for retailers. In this scheme company provides a Pepsi rack to

retailer. The rack is filled with different bottles of Pepsi. The retailers are

instructed that if they will maintain their racks in the same condition as it was

when it was purchased. After completion of one-month different gift packs are

distributed to the retailers.

44

CHAPTER-6

RESEARCH

METHODOLOGY

45

Research methodology

Achieving accuracy in any research requires in depth study regarding the subject.

As the prime objective of the project is to know stock keeping unit available

in market and how market share of PepsiCo in Patna in term of quantities with the

existing competitors in the market and the impact on Pepsi product. The research

methodology adopted is basically based on primary data via which the most recent

and accurate piece of first hand information could be collected. Secondary data has

been used to support primary data wherever needed.

Primary data was collected using the following technique

Questionnaire Method

Observation Method

Procedure of research methodology

Target geographic area was Patna ( NIT More, Mhendhru, Gya

Ghat, Tripolia, Nanmuniya More,Sultangang, Shar Sha Road

Finally the collected data and information was analyzed and

compiled to arrive at the conclusion.

Sources of secondary data

Used to obtain information on, PepsiCo and its competitor history, current issues,

policies, procedures etc, wherever required.

Internet

Magazines

Newspaper

46

CHAPTER-7

DATA ANALYSIS AND

FINDINGS

47

Data analysis and finding

SAMPLE SIZE – 100 RETAILERS

LOCATION - Patna

( NIT More, Mhendhru, Gya Ghat,

Tripolia, Nanmuniya More,

Sultangang, Shar Sha Road )

In this data interpretation, opening stock is when I have visited first time to take

survey and closing stock is survey taken at the end of project. In middle period of

time 60days I have take order from retailer and delivering the product to retailer.

So that market share of PepsiCo is increase.

48

DATA INTERPRETATION

(1) Market share of PepsiCo products and Coco-cola products.

Brand Opening stock in

quantities (case)

Closing stock in

quantities (case)

Total stock

Coco-cola 578 672 1250

PepsiCo 338 486 824

From above table and pie-chat, I found that Coco-cola was 60% market share in

Patna whereas PepsiCo 40%.

This was calculated on the basis of total stock availabilities on opening stock that

mean first outlet survey and closing stock availabilities last outlet survey.

Coco-cola 60%

PepsiCo 40%

Market share

49

(2) Change in market share from opening to closing stock in 8 week.

Brand Opening stock in

quantities (case)

Closing stock in

quantities (case)

Percentage

growth

Coco-cola 578 672 16.26%

PepsiCo 338 486 43.78%

In 2 months internship period, PepsiCo stock was increased by 44% whereas coco-

cola increased by only 16%. This huge increase due to taking order from retailer

and delivering the product in time.

If company takes order from retailer and deliver product on dailies basis then

automatically market share will increase.

0

100

200

300

400

500

600

700

Coco-cola PepsiCo

Opening stock

Closing stock

50

(3) From 2nd

question table, market share of PepsiCo at opening and closing stock.

At the opening stock market share of PepsiCo was 37% and coco-cola 63%.

At closing stock market share of PepsiCo was 42% whereas Coco-cola 58%. This

increased in market share of PepsiCo due to delivering product on time.

Coco-cola 63%

PepsiCo 37%

Market share at openingn stock

Coco-cola 58%

PepsiCo 42%

Market share at closing stock

51

(4) Change in stock keeping unit (SKU) in 8week.

Brand Opening SKU Closing SKU % increase in SKU

Coco-Cola 520 674 29.6%

PepsiCo 389 538 38.3%

From above table, I found that Stock Keeping Units (SKU) of PepsiCo increased

by 38.6% whereas Coco-cola increased only by 29.6% in 2 months.

0

100

200

300

400

500

600

700

800

Coco-cola PepsiCo

Change in SKU

Opening SKU

Closing SKU

52

(5) Stock keeping unit availabilities (SKU) of Pepsi and coco-cola in market on

closing date of project.

Brand Closing SKU Average SKU per outlet

Coco-cola 674 6.74

PepsiCo 538 5.38

Actually coco-cola is producing 38 types of pack product and PepsiCo is

producing 32 types of pack product.

Brand Average SKU per

outlet

Number of SKUs Percentage of

availabilities

Coco-cola 6.74 38 17.7%

PepsiCo 5.38 32 16.8%

PepsiCo has been 16.8% of SKUs Distributed against that available for

Distribution whereas Coco-cola has been 17.7% SKUs Distributed in market.

For both the companies there has been opportunity to grow their business by

increasing SKU availability in the market. PepsiCo has opportunities to increase

83.2% of its SKUs.

From the above graph and table it was clear that the availability of SKU and

Chilled Stocks of PepsiCo was 44% and coco-cola 56%. Actually L.B.P.L. is

producing 32 types of product stock but it’s having only 5.4 types of stock on an

average of per retailer outlet.

coco-cola, 6.74 pepsico, 5.38

53

(6) SKU availabilities carbonated soft drink (CSD) on basis of flavor.

PepsiCo Product

Flavor Product total SKU Number of

packs

% of

availabilities

Cola Pepsi 145 6 24.16%

Clear Lime 7Up,Mountain Dew 234 12 19.50%

Orange Mirinda 46 6 7.66%

Coco-cola Product

Flavor Product total SKU Number of

packs

% of

availabilities

Cola Coca-Cola,

Thums- Up

237 12 19.75%

Clear Lime Sprite 182 6 30.33%

Cloudy Lime Limca 35 6 5.83%

Orange Fanta 56 6 9.33%

From survey I had found that stock keeping unit in cola flavor of Coco-cola

product was more than PepsiCo product. But Coco-cola has two type of product in

cola flavor which was coco-cola and thums-up whereas PepsCo has only one

product pepsi.

Percentage of availabilities =

Opportunities mean every outlet has at least one unit product of each packs.

Percentage of opportunities = 100- percentage of availabilities

From above table I found that cola flavor of PepsiCo has availabilities 24.16%

whereas Coco-cola19.75%. Cola flavor of PepsiCo has opportunities 75.84%

54

market. PepsiCo can increase availabilities up to 100% by working on

opportunities 75.84% cola flavor market.

From data interpretation, cola flavor of PepsiCo was 22.36% more than cola flavor

of Coco-cola. But at the same time clear lime of Coco-cola was 55.55% more than

PepsiCo clear lime product. In orange flavor coco-cola was 21.73% more than

PepsiCo.

Cloudy lime is not manufacture by L.B.P.L. therefore in these flavor 100%

opportunities.

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Cola Clear Lime Orange Cloudy Lime

Chart Title

Coco-cola

PepsiCo

55

(7) Number of company’s cooler available in market.

Brand Number of cooler

Coco-cola 38

PepsiCo 51

Out of 100 retailer outlet, I have found that number of cooler of PepsiCo was 51

whereas coco-cola 38. PepsiCo had been 34% more cooler than coco-cola.

38

51

0

10

20

30

40

50

60

Coco-cola Pepsico

Number of cooler

Coco-cola

Pepsico

56

(8) Total cooler capacities available in market.

Brand Total cooler capacities

Coco-cola 18690

Pepsico 16100

Actually I have earlier found that PepsiCo has more cooler in compare of Coco-

cola. But here coco-cola has more capacities of cooler in compare of PepsiCo.

Coco-cola had 54% total cooling capacities whereas PepsiCo46%.

In capacities wise, coco-cola had 16% more cooling capacities then PepsiCo.

Coco-cola 54%

PepsiCo 46%

Percantage of cooler capacities

57

(9) Market share of carbonated soft drink (CSD) and juice base drink (JBD) in

Patna.

Market Opening stock

quantities in case

Closing stock

quantities in case

Total stock in case

CSD 774 897 1671

JBD 114 202 316

From above data interpretation I found that carbonated soft drink market share was

84% and juice base drink market share was 16%.

CSD product of coco-cola is coco-cola, sprite, thums-up, fanta, limica and soda.

CSD product of PepsiCo is pepsi, 7up, mountain dew, mrinda, soda.

CSD 84%

JBD 16%

Market share of CSD and JBD

58

(10) Market share of PepsiCo and coco-cola carbonated soft drink (CSD) in Patna.

Brand Average quantities in

case per outlet

Percentage of market

PepsiCo 3.50 42%

Coco-cola 4.85 58%

Market share of carbonated soft drink (CSD) in Patna was 84% in which coco-cola

had 58% market whereas PepsiCo 42% market shares in Patna.

PepsiCo, 3.5

Coco-cola, 4.85

59

(11) Market share of Juice base drink in Patna.

Brand Average quantities in case

per outlet

Percentage of JBD

Market

Coco-cola 1.20 85%

PepsiCo 0.38 15%

Market share of Juice base drink (JBD) in Patna was 16% in which coco-cola has

been 76% and PepsiCo 24% juice base market share.

JBD product of coco-cola is maaza and mint mind.

JBD product of PepsiCo is slice and nimbuj.

Coco-cola 76%

PepsiCo 24%

Market share of JBD

60

CHAPTER-8

CONCLUSION AND

RECOMMENDATIONS

61

Conclusion

From above analysis it is evident that there are only two companies dominating in

the soft drinks market - PepsiCo & Coca - Cola. There is neck-to-neck

competition between these two companies. After visiting 100 outlets in Patna

region it was found that the market share of PepsiCo was 40% and that of Coco-

cola 60%. Average availability of quantities per outlet in case of PepsiCo was

6.72cases per outlet and Coco-cola 4.86cases per outlet in this area. It was

observed that when number of coolers was compared, PepsiCo had 34% more

cooler than Coca cola limited but when total capacity is compared Coca cola had

16% more capacity than PepsiCo. Beverage industry is categorized into two

categories- CSD and JBD. Carbonated soft drink (CSD) had 84% market share and

juice base drink (JBD) 16%.

The study also focuses on retailer satisfaction and it was found that majority of the

retailers were selling coco-cola products and some of the retailers weren’t satisfied

with the distribution of PepsiCo products. There were complaints from retailers for

late delivery of product and less stock supply due to shortage.

Coca-cola has covered more market share because they provide better supply, and

has better provision of refrigerator supply to the retailer. Distribution of - coolers

and display of Glow Signs board was better than PepsiCo. So, more investment is

needed to break the brand establishment of Coco-cola product.

62

Recommendations

Coco-cola is the only competitor of PepsiCo. It is better to track every information

about Coco-cola i.e. price, scheme, policy etc… so that it will always help in

Decision making. Company should prepare future plan for maintaining its market

share as competitor can increase and can capture the market. Now a day with the

introduction of tetra packs such as fruity, Tree Top etc… Lumbini Beverages Pvt.

Ltd. should think of introducing such packs of its various flavors product.

It was observed that some retailers keep other companies products in the PepsiCo

fridge. Company should make a special department to check such activities and

inspect every shop 3 to 4 times in a month to check fridges. If it is found that

retailer don’t keep other companies product in PepsiCo fridge then they should

provide special scheme or incentive to retailers which may help in increasing

market share of PepsiCo.

A complaint Register should be assigned by the company to every distributor in

every route so that, retailers can write their problems. The complaint register

should be checked by Customer Executive (CE) and depot in-charge time to time.

Customer Executives should take the feedback from the salesman and the

distributors for solving retailer problem.

Retailers expect Computer generated bills from distributors where it was found that

the competitor is successful in providing this but Pepsi had not yet implemented

the same system, so it should be implemented. It was also found that number of

outlets is more. So it is required to short the route and extra vehicles/tricycles

provide in this route.

The above recommendations may help the company Lumbini Beverages Pvt. Ltd

to assess in a better way.

63

APPENDIX

64

Bibliography

Internet site

www.pepsico.com

www.cocacocla.com

www.pepsicoindia.com

www.wikipedia.com

www.ask.com

Magazine

Business today

Business and economy

Book

Marketing Management by Philip Kotler

Marketing Management by V.S. Ramaswamy

Business Statistics by S.P. Gupta

65

Excel data sheet

66