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CHAPTER-1
INTRODUCTION TO THE STUDY
Beverage industry is one of the fast growing industries in India. It can be divided in to
two sections i.e. carbonated and non-carbonated. The carbonated drinks that further
classified in to cola, lemon, orange, mango and apple segments. Marketing includes all
the activities like promotion, distribution, advertising etc. Marketing is also to convert
social needs in to profitable opportunities. So this topic provides all the essentials to
theoretical as well as practical knowledge and to inculcate its efficiencies. It will help
the company ultimately to achieve their goals. The soft drinks companies are
experiencing a boom in soft drinks, although growth of other cold drinks is not quite
encouraging. The markets of soft drinks are mainly triggered by the entry of two players
i.e. coca cola and Pepsi.
PepsiCo India is striding ahead rapidly towards enabling the global vision to be the
world's premier consumer products company focused on convenience foods and
beverages. PepsiCo India seeks to produce healthy financial rewards for investors as it
provide opportunities of growth and enrichment to its employees, business partners and
the community’s in. Which it operates. PEPSI has gained its dominance in terms of
beverages as well as food. In partial fulfillment of the above mentioned course a
project was undertaken by me on the topic SALES AND DISTRIBUTION, . To know
the facts regarding the above topic, I visited a market and outlets that given to me
during my training that includes retailers and distributors ant Pepsi outlets in Patna. My
interest was to have a look on sales and distribution procedure practices by Pepsi and
have a look on sales strategy adopted by Pepsi Patna …
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The company wants to give maximum satisfaction to its customers, so that they
can get good value for their capital. The company wants to know whether the
consumers are satisfied with their services or not? Whether consumers have faced any
problem with the product and if any then what type of problem they are facing?
Whether the retailers are satisfied with the promotional schemes of the
company? What should be the changes that will improve the quality of services? What
are the competitive advantages the company has over the competitors and where the
company lacks? What are the opportunity and threats in the external environment and
how the company scheme for the opportunity and how the company overcome this
threats?
Since this study was aimed at knowing the customer retailer’s satisfaction
dissatisfaction level and therefore it required to collect information related to quality of
services provided by PepsiCo Company as well as about its competitors.
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IMPORTANCE OF THE STUDY
The project report titled “SALES AND DISTRIBUTION special reference to
PATNA only can be of great importance to the organization.
It will help the company in following major ways
To identify their competitors and about their strength and weaknesses
To design their market strategies
In other way it can also influence decision on the requirement of the sales
and distribution & comparison between Pepsi and coca cola.
Though I have tried to do my
Project study honestly and sincerely and in case, if there is any weaknesses and
shortcomings, those are unintentional.
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OBJECTIVE OF THE STUDY
Every project is carried out with a view to attain certain predetermines objectives.
Following are the objectives of this project:-
To know the brand perception of PEPSI CO BEVERAGES.
To know the stock position of PEPSI and its competitors at different outlets
To know the reason for specific brand preference
To ascertain the satisfaction level of consumers
To ascertain the strength and weaknesses of the competitors.
To help the company in designing their market strategies
To know the grievances of retailers and distributors
To identify the products image
Find the depth and width of distribution channel adopted by Lumbini
Beverages Pvt. Ltd. Hajipur and compare them with those followed by
competitors.
To ascertain the consumer brand perception of cold drinks with respect to
price, product, quantity and advertising.
Whatever the subject taught in the class room of MBA course that is
completely theoretical. So during the training period we compare how the
marketing research (sales) activities (practical) of our organization with the
theories.
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IMPORTANCE AND RELEVANCE OF
THE 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, established 53 years ago before
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 Peptones 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. Parle People
introduced their Cola, Thumps Up with a mighty saying “Happy days Are here again”
as if happy days went away with Coca Cola. Pure drinks of Delhi also without lasing
much introduced pure drinks were producing and marketing Coca Cola earlier Campa
Cola with Campa orange and Campa lemon. Modern Bakeries entered the market with
Double Cola Seven, Mohan Makings with Merry & Plkup and McDowell with Thrill,
Rush and Sprint. 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
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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 American
concern. It started business on the Indian soil just a few years ago.
Today, it has occupied 62% shares of Soft Drinks market in India. Now Pepsi is
going all out to prove that they are the best. But now due to some factors competition
among them has become stiffen. So in this way the important activities have increased.
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LIMITATIONS OF RESEARCH
As I was asked to carry on my vocational training I found the following limitations
during my training period. So I could not collect all information regarding my topic.
1) It was not possible to understand thoroughly about the different marketing
aspects of soft drinks in a span of two months.
2) The survey was conducted in the peak season when the sale was too high by
this I cannot get the appropriate result.
3) Money –as no stipend was given, it was difficult to cover a wide area.
4) All the work was limited in Patna area, so the finding should not be
generalized .the finding of survey will be strictly based on the response of
consumer, retailer/dealers since it is difficult to ascertain the authenticity of
their statement.
5) Shortage of time factor was one of the biggest constraints.
6) Most stress was given on the primary data as it was difficult to collect
secondary data from the organization and distribution since it is difficult to
ascertain the authenticity of their statements.
7) All the observation and recommendation will be made on the feedback
obtained from survey.
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PEPSICO MISSION AND VISION
At PepsiCo, we believe being a responsible corporate citizen is not only the right thing
to do, but the right thing to do for our business.
OUR MISSION
Our mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to produce financial rewards to investors as
we provide opportunities for growth and enrichment to our employees, our business
partners and the communities in which we operate. And in everything we do, we strive
for honesty, fairness and integrity.
OUR VISION
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate - environment, social, economic - creating a better tomorrow than today."Our
vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
PepsiCo a truly sustainable company.
FUTURE PLANS
Every company will have the future plans; in the same way Pepsi Company also has its
future plans to increase its sales and the market share in the soft drinks industry. After a
long research work they will go for the new plans. Some of the future plans were given
below. In order to capture Indian food market PepsiCo India is planning to launch
indigenous food products. PepsiCo is going to make an investment of around $110
million in its beverages business in India to increase the production capacity and the
quality of the products. On future plans, the company will launch Lipton ice tea all over
the country this summer.
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The company is also seriously considering bringing some products from Quaker Oats
into the country. PepsiCo’s beverage business has also decided to invest $220 million in
the current year.
Ms. Indra Nooyi, PepsiCo’s Indian face, says the $27-billion foods and beverages giant
will invest $300m-$500 millions into its India operations over the next five years and
clearly indicated that the fast-growing snack foods business was going to be the growth
driver in the country.
Clearly, the snacks business — which has grown five-fold in the past four years — is
lifting PepsiCo’s fortunes. The CEO of Pepsi India, Ms. Nooyi says the company is
now looking at tripling this business in the next three years or so, and is even testing
Leher Kurkure for the US and UK markets. It is learnt that the total investment for the
beverage business of PepsiCo
India for the next three year will be around $350 million. PepsiCo India on Monday
announced Rs 1,000-crore investment for this calendar year that will see the food and
beverage major expanding its manufacturing capacity and supply chain, among others,
in the country. In this way Pepsi India Company is taking steps to increase their sales
and their market share in the soft drinks industry.
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HISTORY OF PEPSI
Pepsi-Cola Company founded by CALEB D. BRADHAM in 1890 at North Carolina
in USA. Its CEO is ROGER ENRICO and in India is Pepsi Co. holding its chairman
Mr. RAJIV BAKSHI. The head quarter of Pepsi- Co. in India at Guargaon. Priestly it
is operated in 196 countries. Pharmacist CALEB invented it to cure the disease
“DISPARSIA”. It is from this word that was related to Pepsi. Soon it entered the
American market as soft drink which at that time was mostly dominated by Coca-Cola,
but soon Pepsi was able to dominate the cola market & thereafter it has been no
looking back. Pepsi & Coca-Cola re engaged in ferocious cold war that has taken the
whole world by storm. Pepsi stands 51st position among the fortunate 500 companies
of the World. Its total capital is approx $3000 crore total sales annually is worth $37
crore, half of which comes from beverages and other half from division. The beverages
arm of the Pepsi Co. is Pepsi-Cola Co. and the snack food country is called Frinto-Lay-
Inc. The year 1998 is the centennial year of Pepsi. Its total profit in the year 1996-
1997 was worth Rs. 45 crore approx. The total number of employees engaged in this
business is 4.25 lakhs globally.
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HISTORY OF PEPSI IN INDIA
Soft drink PepsiCo gained entry to India in 1988 by creating a joint venture with the
Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India
Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of
foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture
in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for
having refused to release the list of its ingredients and in 1993, the ban was lifted, with
Pepsi arriving on the market shortly afterwards. These controversies are a reminder of
"India's sometimes acrimonious relationship with huge multinational companies."
Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major
targets in part because they are well-known foreign companies that draw plenty of
attention."
Soon it was giving the local contenders the run for their money in the soft drink market.
It comes out with dazzling marketing innovation that rocket the cola market line selling
the product through function, Pepsi outlets. Pepsi’s success in creating a brand almost
from scratch in India is the stuff that marketing case studies are made off. Given the
problems of doing business in markets like ours, Pepsi entered the market as an under-
dog. Its first even advantage- it entered before Coke returned was considerable reduced
by the enormous export obligations stepped on the company. Yet right from the
beginning, Pepsi demonstrated a far more focused approached. So while it entered the
market like any other MNC, it was quick to adapt, it realized that consumers,
particularly the youth, to whom it consciously reached out, would identify better with a
brand that they see as globe, yet Indian, Pepsi was built as a desi brand.
Hence its deliberate attempt to build advertises campaigns using the Popular Hinglish in
the process. Slogans like, ‘YEHI HAI RIGHT CHOICE BABY’,
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“YEH DIL MAANGE MORE –AHA” and “YEH PYASS HAI BADI” became part of
India’s popular consciousness. When Pepsi lost the bidding battle to sponsor a cricket
tournament to Coke, the loss was turned into triumph with the catch line, “NOTHING
OFFICIAL ABOUT IT”. It cashed in on the untapped consumer aspiration in smaller
towns, the hinterlands of metropolitan cities and now days the slogan which is on air is
“YE HAI YOUNGISTAAN MERI JAAN”. It showed a rare ability not only to survive,
but also grow through India’s tortuous policy twists and turns, which threw many other
MNC’s off balance. Its top management team did not suffer from the frequent changes
seen at rival. Coke consequently, it was able to unlike Coke, which paid enormous
prices to buy out established local brands, Pepsi brought its own stuff over and pushed
those aggressively with dealers, retailers and consumers. Right now, it can bark
outstanding success in building a brand that has become synonymous with soft drinks
across the length and breadth of the country. Pepsi-Cola Company was founded by
CALEB D BRADHAM in 1890 at North Carolina in USA. It’s CEO is Indira
Nooyi and in India PepsiCo. Holding its chairman is Mr.Rajiv Bakshi. The head office
of PepsiCo in India is at Gurgaon. Presently it operates in 196 countries. Pharmacist
CALEB it to cure the disease “DISPARSIA”, It is from this word that was related to
Pepsi. Soon it entered the American market as soft drink which at that time was mostly
dominated by Coca-Cola, but soon Pepsi was able to dominate the Cola market and
thereafter it has been no looking back. Pepsi and Coca-Cola are engaged in a ferocious
cold war that has taken the whole world by storm. Pepsi stands 51st position among the
fortunate 500 companies of the world. Its total capital is approx $3000crore and total
sales annually are worth $37crore, half of which comes from beverages and other half
from food division. The beverages arm of the PepsiCo. Is Pepsi-Cola company and the
snack food company is called Frinto-lay-Inc.
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RECENT DEVELOPMENTS
Recently Indra Nooyi
(PepsiCo Chairman and
CEO) has announced
that PepsiCo would
invest USD 500 million
in its India operations
over the next three years
to triple revenues over
the next five years.
These investments would
be spread into
manufacturing capacity,
market infrastructure,
environment
sustainability initiatives,
R&D, new product development, and agriculture. It was declared by Ms. Indra Nooyi
when she was addressing a press conference in Delhi.
Ms. Nooyi said that PepsiCo would also be looking at acquiring local brands or
companies. Along with Ms. Nooyi, the 26 member PepsiCo Executive Committee was
on a three day visit to India. In the current year PepsiCo’s total system investment in its
Indian beverage business will now exceed $220 million. Of this, PepsiCo India will
invest over $170 million, with its bottling partners investing the balance. This is by far
the largest investment made by PepsiCo in its beverage business since its entry
intoIndia. Mr. Sanjeev Chadha, Chairman and CEO, PepsiCo, India Region said that
PepsiCo’s beverage business momentum had steadily accelerated over the last nine
quarters.
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“They were extremely pleased with their performance in 2008. Our beverage volume
was growing around 30 per cent in that year. He added “To sustain this growth, I am
happy to report that we have decided to revise our earlier investment plans upwards, and
are now more than doubling our investments over last year”. PepsiCo is now the fastest
growing beverage business in India. These new investments will be spread across
manufacturing capacity, market infrastructure, supply chain, fruit processing,
agriculture, and R&D. This is over and above the significant capacity additions made by
PepsiCo last year. Over the next three years, capacities will be augmented in other
locations, including the setting up of new Greenfield plants. The company has already
begun scouting around for suitable locations, and will focus on states that offer the best
investment environment. PepsiCo’s strong growth has been spread across the
company’s diverse portfolio, with all categories: carbonated drinks, juices, juice-based
drinks, sports drinks, as well as water showing strong momentum. The growth has been
driven by investments in market infrastructure, innovative marketing campaigns, a
stronger distribution network. The excise reduction by the Indian government as part
of its fiscal stimulus package has played a critical role in enabling the company to
withstand cost pressures and maintain price stability of its products. PepsiCo wants its
new investments to be in place to capture the higher growth potential that it expects
India will offer. Besides the new investment which is expected to contribute 50,000 new
direct and indirect jobs to the Indian economy, PepsiCo has also announced a pilot
program in India which directly delivers against the United Nations’ Millennium
Development Goal to eradicate extreme poverty and hunger by 2015.
Addressing the same press conference, Dr. Manhood Khan Chief Scientific Officer,
PepsiCo, said, “Millions of people – here in India and elsewhere – suffer major
deficiencies of key micronutrients, like iron, Vitamin A and zinc, which lead to serious
health problems.
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We recognize that almost 50 percent of young women are iron deficient in India placing
them and their children at risk for physical and mental impairments. PepsiCo is working
toward developing nutritious fortified products to reduce micronutrient deficiencies in
select developing countries, to address the huge challenge of malnutrition among the
poor, leveraging our core competencies including R&D, product development,
marketing, sales and distribution”. The initial work would focus on reaching young
women with a nutritious product. Regarding the water balance, PepsiCo Vice Chairman,
Mike White reaffirmed that its India operations were on track to achieve a positive
water balance by 2009. This means that PepsiCo India will save and recharge more
water than it will use in its beverages plant throughout the year.
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SOFT DRINKS INDUSTRIES IN INDIA
Soft drinks are non-alcoholic beverages. It is artificially flavored and
contains no fruit juice or pulp. India with population of more than 100 crore is one of
the largest consumers market in the world after china. Soft drinks is atypical consumer
product purchased by individuals to quench thirst and secondly for refreshment.
Searching for the point of origin of Indian soft drinks I first brand soft drinks in India?
It was introduced by PARLE during later part of 40’ s Coca giant, Coca-Cola was the
first foreign soft drink to be introduced in India in 1965, Coca-Cola made a very good
dominated the whole scheme right from the world go. It (Coca-Cola) faced no
competition at that time.
This extraordinary success of soft drinks can be attributed to the following factors:-
Absence of contemporary competitive brand.
Euphoric image build up in the Western countries preceded the entry into India
Market
Indians are very found by nature of foreign goods, services etc. due to
prolonged foreign rules.
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PARLE EXPORTS PVT. LTD:-
Later in 1970 introduced Limca, Lemony Soft drinks. Before Limca introduced they
had tentatively introduced Cola, Pepino, which they had to withdraw in the face of
battering confrontation with Coca-Cola soon. Three of four groups of Indian
companies, which had the required production capacity, started their own brands of
Coca-Cola. Lemon, Orange, but failed to achieve their goal on a national basis.India
always has brotherhoods relationship with MNC’S which gave a significant
opportunities to soft drink industries in India when Coca-Cola decided to windup its
operations 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 concentrate 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 existence of Coca-Cola from India in 1977 accelerated the growth of several
Indian soft drinks. New soft drink in the form of tetra pack enters the market among
Frooti, Jump-In, and Tree-top Ire the prominent once. Till 1977 their equipment
bottling plants and the distribution network a longing to be of no use. It took them one
year to develop 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. Soon the Indian soft drinks industries
started at a phenomenal rate, and all Parle products Gold-Spot, Limca and Thumps-up
became leader in their own segment.
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In spite of all the drinks market still has large gap as claim by soft drink manufacturers.
To fill these gaps there are many soft drinks concentrated and squashes flooded the
market. The Indian soft market basically offered three flavors i.e. Orange, Lemon, &
Cola. The year 1988 was the coming of the multinational company, Pepsi entering the
Indian market elevens years after the existence of Cola-Coca. It had name, fame and
edge of being one of the best in the game and it also offered stiff competition to Parle
& Coke. Now Pepsi is going all out to prove that they are the best.
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PEPSI- THE INDIAN EXPERIENCE
Previously there were two ad tags “Yehi Hai right Choice Baby” & “Nothing official
About It”, which immediately ring a bell-it’s to be a Pepsi. But today this has been
changed and it’s “Yeh Dil Mange More.”Pepsi started its operation in India in 1988 in
Kanpur and since pepsi Co. has set up a fully integrate operation India viz.
Manufacturing, Research & 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 through new development of
technology and accelerating exports and employment. It has 500crore in India to
develop the local market of Pepsi has distributed exclusive franchises in India to bottle
its total product. There are 34 bottling plants of Pepsi in India. Pepsi directly controls
some and rests are under various franchises.
Some special features in India scenario:-
1. BEVERAGES :-
Pepsi has set up a concentrate plant in 1989 at Chan no, District
Sangrur, Punjab, With an investment of55 million the state of the art Plant houses a
world class laboratory where soft drinks from all over the world are tested. This
concentrated plant supplies Pepsi. 7up team, Mirinda, Orange, Apple & Lemon
flavors to all the Pepsi bottling plant in South Asia. Pepsi has34bottling plant in
India, out of which 8 are company owned and by Indian franchisee, Pepsi co. has
has invested heavily on up up graduation of these bottling plants and has put 5
green field project in backwards area such as Jaipur and Bazapur in U.P Bharuch in
Gujarat, Sonapur in west Bengal and Naclamangala in Karantka. New project is
coming up in Maharashtra and Tamilnadu. In addition to the company’s own
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Bottling operation (COMBO), Pepsi has 26 franchisees manufactures are also
planning to install substantial additional capacities. In last two year Pepsi Co.’s
franchisees have put new bottling plan at Jaipur, Bhopal, Hajipur (Bihar) Guntur
(A.P) and Guwahati (Assam) with further investments. Pepsi Co.’s franchisees
amongst the best in the Pepsi world.
2. JUICES :-
Pepsi Co. plants to launch juices in a bog way in India, thereby
helping the farmers in fruit procurement Pepsi Co. Agriculture scientists have
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 brand.
3. EMPLOYMENT OPPORTUNITIES :-
Pepsi provides direct and indirect employment to persons in
supplying it’s raw materials, packing materials, distribution vehicles, glass bottles,
plastic crates, display racks etc. And to small artisans, paintings and small traders
in market places activities. All the Pepsi’s business India either in industries with
backward linkages with farmers or in services industries, being highly distribution
oriented. Pepsi system operates over300 trucks (direction operations) 8000 three
wheeler (distributors) and at least 1000 push carts, serving over half million outlet
in India. By the year 2005 the no. of outlets served is expected to be doubled.
4. DEVELOPING :-
Pepsi today is one of the main sponsors related activities in India
has continued to promote upcoming new players of cricket, Hockey and Football.
In Mohali; Disclose of the chemical composition of the essence. Pepsi has
developed a Pepsi Cricket Academy, which would develop over 500 Young
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Cricket enthusiasts in next five years. Similarly Pepsi; cricket coaching camps
clinics are held to coach young boys in North and South
5. COMMUNITY RELATIONS :-
Most of the bottling plants of Pepsi are located in backwards areas thereby
giving huge employment opportunities in these areas. Pepsi as a responsible
company undertakes social projects in and around the bottling plants. These include
supports to the education centres. Sponsors inoculation camps, providing free
health check-up, initiating sanitation, drives, promoting literacy drives and helping
villages to put up bus shelter etc.
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CHARACTERSISTICS OF SOFT DRINKS
Unfinished goods (Required chilling before consumption)
Two -way transportation (Once filled bottles to market and
Second empty bottles from market).
Heavy expenses on advertisement and promotions.
More attention to retailers. Several schemes and other facilities provided to
them.
Next flavours are introduced time to time.
Highly competitive market with only two equally strong Players
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CHAPTER-3
HISTORY OF LUMBINI BEVERAGES
PVT.LTD
With the urbanization of economy in 1991, about 13 year after the exit of Coca Cola
from Indian seen, an MNC globally known as PCI (Pepsi Cola International) entered the
Indian market with its name PFL (Pepsi Foods Ltd.).It started bottling its products in
Bihar by Steel City Beverages, Jamshedpur on 24th March 1991. Late D. N. Kamani
installed this bottling unit in 1969. The company entered the soft drink with the
introduction of Coca Cola and used to enter for the market of Bihar, parts of Bengal,
Orissa and Nepal. The company was the pioneer of soft drink in Bihar.
Due to urbanization and behavioral changes the number of soft drink consumers
increased. The Steel City Beverages Ltd. Jamshedpur, was unable to meet the demand
of supply as per the seasonally graph in North Bihar due to increases in the number of
consumers. To fulfil the demand in that every region PFL established a plant in Hajipur,
under the auspicious guidance of Mr. Charan Khilani in December, 1997 famous as
Lumbini Beverages Pvt. Ltd.
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It is one of those bottling units of PFL which comes under FOBO (Franchise Owned
Bottling Operation).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 throughout 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 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. PLACE- Lumbini Beverage Pvt. Ltd. Is situated at Industrial
Area, Hajipur in Vaishali district of Bihar. Mr. Charan Khilani, who is a resident
of Kolkata, established it in the year 1997.
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ORGANIZATIONAL STRUCTURE
OF LUMBINI BEVERAGES PVT.LTD
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:
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PROFILE OF LUMBINI BEVERAGES
Company Land Area : 9.30 Acres
Location & Authority : EPIP, Industrial Area, Hajipur
Name of Director/occupier : Mr. Ravi Khilani
Name of the MD : Mr. Charan Khilani
Name of the CEO : Mr. G. P. Singh
Name of the HOS : Mr. Madan Nagar
Name of T.D.M : Mr. Gyanesh Awasthi
Name of H.R.M : Mr. N. K Prasad
Industrial License No. : Registration No. – H 12475 (C)
Factory License No. : 66750/VLI
F. P. O. No. : 10607/97
Capacity : 850 bottles per minute
Nature of product : Soft Drinks
Control Board : No. 1877
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ORGANIZATIONAL HIERARCHY
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PEPSI
UNIT MANAGER FINANCE
UNIT MANAGERHRD
UNIT MANAGER F.O.B.O.
MANAGING DIRECTOR
CEO
FINANCE
H.O.F.
A/C AND FINANCE MANAGER
A/C ASSISTANT
PRODUCTION
PLANT MANAGER
SHIFT ENGINEER CHEMIST
SALES
H.O.S.
T.D.M.
A.S.M
C.E.
ROUTE ADVISER MERCHANDISER SALES MAN
H.R.D.
HR EXECUTIVE PERSONAL EXECUTIVE
UNIT MANAGER MARKETING
PRODUCTION PROCESS
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 sending 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.
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.
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SWOT ANALYSIS OF THE ORGANISATION
STRENGTHS: -
Lumbini Beverages Pvt. Ltd is Franchaise Owned Operation (FOBO) of
world’s most famous soft drink Pepsi Co.
LBPL uses state of the art and fully automatic machines and technology for
the production and building of soft drinks.
It has very strong network and built market and currently holds all the parts of
the state.
It has wide range of product varieties
WEAKNESS: -
No cost cutting program for the products.
A promotional activity in the rural market is not unto the mark as compared to
the urban market.
Brand Pepsi In cola flavor is one of the popular lagging behind with its nearest
Competitor, only due to high sugar content and less thrilling taste.
Not availability of the entire product on demand.
OPPORTUNITIES: -
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LBPL makes the buying process more convenient of efficient (it provides the
Pepsi products at required places i.e. direct to distributors & retailers through
distributors)
The executives of company meet the need for more information and advice to
distributors/retailers/customers.
It takes return the leakage, burst bottles etc.
THREATS:-
One of the products of their competitor in Time flavor as a very good market
share due to its taste
Coca-Cola is now spending more and more to boost up the
sale.
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THE PRODUCT PROFILE OF
LUMBINI BEVERAGE PVT.LTD
PepsiCo makes products like Doritos, Lay's, Cheetos, Fritos, Ruffle potato chips,
Tostitos, Quaker Chewy granola bars, Sun Chips, Rold Gold pretzels, Stacy's pita chips,
Smart food popcorn, Pepsi, Mountain Dew, Gatorade, Tropicana Pure premium, Sierra
Mist, Propel, Tropicana juice drinks, Dole, SOBE Life Water, Aquafina, Capon Crunch,
Life cereal, Starbucks ready to drink coffee, Lipton read to drink tea, Quaker oatmeal,
Aunt Jemina pancake syrup. The major brand categories owned by PepsiCo, Inc.
include Pepsi, Frito-Lay, Gatorade, Quaker Oats and Tropicana. Each of these has
numerous other product offerings in their respective categories, both U.S. and
internationally. For example, the Pepsi-cola family includes over two dozen beverage
brands, such as Mountain Dew, Mug (root beer) and several partnerships (e.g., Lipton
ice tea). Quaker Oats includes Rice-a-Roni side dishes, Aunt Jemima mixes and syrups,
etc.
CORE BRANDS:-
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1. PEPSI
2. DIET PEPSI
3. MIRINDA
4. SLICE
5. MOUNTAIN DEW
6. 7UP
7. 7UP -NIMBOOZ
8. AQUAFINA
9. SODA
10. TROPICANA JUICE
DISCRIPTION OF THE PRODUCTS:-
Pepsi:-
Pepsi-Cola, commonly called Pepsi, is a cola soft drink produced
and manufactured by PepsiCo. It is sold worldwide in stores, restaurants and from
vending machines. The drink was first made in the 1890s by pharmacist Caleb
Bradham. The brand was trademarked on June 16, 1903.
There have been many Pepsi variants produced over the years, including Diet Pepsi,
Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Jazz, Pepsi Next (available in
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Japan and South Korea, and Pepsi Easter Hop.
Calories 100
Total Fat (g) 0
Sodium (mg) 25
Potassium (mg) 10
Total Carbohydrates 27
Sugar (g) 27
Protein (g) 0
Caffeine (mg) 25
7 Up:-
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7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the
brand are held by Cadbury Schweppes Americas Beverages in the United States, and by
PepsiCo in the rest of the world (sublicensed to Britvic in the United Kingdom and
C&C in Ireland).
Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium
benzoate (preserves freshness), caffeine, citric acid and natural flavors.
Calories 100
Total Fat (g) 0
Sodium (mg) 25
Potassium (mg) 20
Total Carbohydrates 25
Sugar (g) 27
Protein (g) 0
Caffeine (mg) 24
Mountain Dew:-34 | P a g e
Mountain Dew is a caffeinated, sweet, citrus-flavored soft drink produced by
PepsiCo, Inc. It was invented in Marion, Virginia and first marketed in
Knoxville, Tennessee in 1948, then by the Minges family in Fayetteville, North
Carolina and across the United States in 1964. When removed from its
characteristic green bottle, Mountain Dew is bright yellow-green and semi
opaque
Type flavored soft drink
Manufacture Pepsi Co., Inc.
Country of Origin USA
Related Products Sierra Mist, Sprite, Fanta, teem
Calories 100
Total Fat (g) 0
Sodium (mg) 25
Potassium (mg) 15
Total Carbohydrates 25
Sugar (g) 25
Protein (g) 0
Caffeine (mg) 20
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Nimbu paani, Nimbooz:-
PepsiCo India has launched packaged Nimbu paani, Nimbooz by 7UP. The
product has been created to suit Indian tastes. PepsiCo claims that Nimbooz, an
offering with real lemon juice, no fizz, and no artificial flavors will be available
in trendy.
Calories 100
Total Fat (g) 0
Sodium (mg) 25
Potassium (mg) 10
Total Carbohydrates 20
Sugar (g) 20
Protein (g) 0
Caffeine (mg) 20
FRUIT JUICE:- 36 | P a g e
Slice Mango Flavor
Contains: Carbonated Water, High Fructose Corn Syrup, Mango Juice From
Concentrate, Citric Acid, Potassium Benzoate (Preserves Freshness), Modified
Food Starch, Natural & Artificial Flavors, Potassium Sorbate (Preserves
Freshness), Ascorbic Acid (Vitamin C),Yellow 6, Glycerol Ester of Wood
Rosin, Calcium Disodium EDTA (To Protect Flavor), Sodium Citrate.
Calories 120
Total Fat (g) 0
Sodium (mg) 25
Potassium (mg) 35
Total Carbohydrates 35
Sugar (g) 35
Protein (g) 0
Caffeine (mg) 0
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THE PRODUCT PROFILE OF LUMBINI BEVERAGE
PVT.LTD
Product Name Quantity
PEPSI : 200ml, 300ml, 600ml, and 2000ml
MIRINDA : 200ml, 300ml, 600ml, and 2000ml
SLICE : 200ml, 250ml, 500ml, and 1200ml
MOUNTAIN DEW : 200ml, 600ml, and 2000ml
7UP : 200ml, 300ml, 600ml, and 2000ml
NIMBOOZ : 350ml
AQUAFINA : 1000ml
SODA : 350ml, 500ml, and 1000ml
TROPICANA JUICE : 250ml, 200ml, and 1000ml
MY CAN : 250ml
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PRICE PER CARAT:-
Carat/Price 200ml 250ml 300ml 350ml 500ml 600ml 1000ml 1200ml 2000ml
Pepsi Rs.190 Rs.262 Rs.560 Rs.498
7Up Rs.190 Rs.262 Rs.560 Rs.498
Slice Rs.216 Rs.258 Rs.630 Rs.618
Mirinda(o) Rs.190 Rs.262 Rs.560 Rs.498
Mounten Dew
Rs.190 Rs.560 Rs.498
Aquafina Rs.140
My Can Rs.330
Nimbooz Rs.330
Tropicana Juice
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CHAPTER-4
MARKET SEGMENTATION
The soft drink being a FMCG product has a wider and scattered market. Thus to
enable concentrated effort of marketing activities in different scattered market, the
entire market is broken down into the following segments.
Route Market
Home Market
At Work Market
ROUTE MARKET:-
Outlets in this market cater to those people who are engaged in shopping, eating, outgoing to and from work, in amusement enters etc.
HOME MARKET:-
Outlets in this market cater to people buying prominently for home consumption either by case loose bottles.
AT WORK MARKET:-
Outlets in this market cater to people working in office, factories etc., An attempt is always made to make soft drinks readily and conveniently available all day long while people are actively working.
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THEORITICAL PERSPECTIVE
RESPONSIBILITY:-
Its responsibility is to continuously improve all aspects of the world in which we
operate in – creating a better tomorrow for future generations.
Environment Sustainability:-Environment Sustainability is based on PepsiCo’s commitment to be responsible
stewards of our planet’s resources. We are reducing water usage through conservation,
reuse, and replenishment and we work with local communities to provide access to
clean water.
Sustainability:-It’s Everybody’s Business
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Sustainability Vision:-
PepsiCo’s responsibility is to continually improve all aspects of the world in which we
operate - environment, social, economic - creating a better tomorrow than today.
Tomorrow Today
CSR – India:-
PepsiCo India continues to build on its strong foundation of achievements on the
Purpose or CSR agenda and scale up its initiatives while focusing on the following 3
critical areas in Environment Sustainability that are linked to its business and where it
can have the most impact.
Replenishing Water:-
PepsiCo is committed to conserving and recharging resources in the environment and
recognizes that corporations can play a key role in using scarce resources such as water
with care and responsibility
Waste to Wealth:-42 | P a g e
Waste to Wealth –PepsiCo India’s unique Waste to Wealth initiatives to convert bio-
degradable waste into high quality organic manure and recyclable waste is recycled.
Partnership with Farmers:-
PepsiCo India continues to strengthen its partnerships with Farmers across the country to boost their productivity and income.
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Corporate Social Responsibility – India:-
Performance with Purpose articulates PepsiCo India’s belief that its businesses are
intrinsically connected to the community and world that surrounds it.
Replenishing Water:-
In 2009, through our various initiatives of replenishing water we were able to give back
to the community more than consumed in our manufacturing processes.
Waste to Wealth:-
PepsiCo India’s unique Waste to Wealth initiatives to convert bio-degradable waste into
high quality organic manure and recyclable waste is recycled.
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Partnership with Farmers:-
PepsiCo India continues to strengthen its partnerships with Farmers across the country
to boost their productivity and income.
Healthy Kids:-
PepsiCo’s ‘Get Active’ a Good nutrition and Active Lifestyle Program for Children has
seen robust growth and implementation PepsiCo India stays committed to the health and
well-being.
Partners in CSR:-
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PepsiCo partners who have been associated with various CSR initiatives
Community Voices:-
Our partners and beneficiaries talk about how various PepsiCo’s CSR initiatives
changed their lives.
Other Community Initiatives:-
PepsiCo India has been involved in series of initiatives towards the Community
development and supporting the local population.
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COMPETITOR COCA-COLA REASON
FOR DOMINATING COCA-COLA
The Coca-Cola Company has historically been considered PepsiCo’s primary
competitor in the beverage market, and in December 2005, PepsiCo surpassed The
Coca-Cola Company in market value for the first time in 112 years since both
companies began to compete. In 2009, the Coca-Cola Company held a higher market
share in carbonated soft drink sales within the U.S. In the same year, PepsiCo
maintained a higher share of the U.S. refreshment beverage market, however, reflecting
the differences in product lines between the two companies. As a result of mergers,
acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business
has shifted to include a broader product base, including foods, snacks and beverages.
The majority of PepsiCo's revenues no longer come from the production and sale of
carbonated soft drinks. Beverages accounted for less than 50 per cent of its total revenue
in 2009. In the same year, slightly more than 60 per cent of PepsiCo's beverage sales
came from its primary non-carbonated brands, namely Gatorade and Tropicana.
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Two primary reasons contributed to domination of Coca Cola in the international
market, with one as mentioned above was the strategy Coca-Cola used when investing
in a foreign market. Coca-Cola entered foreign markets differently than Pepsi, providing
it an edge over Pepsi. While Pepsi invested heavily in foreign markets, Coca-Cola’s
appointed bottlers with significant experience easily neutralized any threat PepsiCo
could pose. The second reason Coca-Cola holds such a dominant position in world
market is due to World War II. During World War II, Coca-Cola offered American
servicemen its product for 5 Cents, wherever they were and whatever the costs the
company would incur. The company would establish bottling plants (subsidized by US
government), and send its product overseas wherever US troops went. With its
inexpensive price, and widespread popularity among servicemen, coupled with the
eventual victory of US in Europe and Asia, the product was widely adopted throughout
Europe and Asia. Due to familiarity of the product, Coca-Cola still retains a dominant
position throughout Europe and Asia.
COMPETITOR COCA-COLA
Quick and prompt to their service.
This company is more dominant and securing a positive image in the market.
Regular to their service.
More chillers are made available in comparison to Pepsi.
Scheme is properly conveyed to shopkeepers.
Close watch on current market trends.
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PROMOTIONAL ACTIVITIESPromotional activities play a greater and important role in the marketing effort carried out by PEPSI Co. It is for more create and maintain an image of its products.
PROMOTIONAL ACTIVITIES CARRIED OUT BY "LUMBINI BEVERAGES PVT. LTD"
L.B.P.L. carries out its promotional activities as a controlled and integrated program of communication and material design to present its soft drink to the prospective customer.
The Tools used by “Lumbini Beverage Pvt. Ltd.” For fulfilling the various purposes of its
(i) Point of purchase :
A sensible man does not has to go for too find out whatever a common pan wala knows that People buy with their eyes. Every item of sale in a shop is displayed in front where people can see it at the first sight. It is the same with all the shops vendors in towns either selling Consumer goods or selling soft drinks. Rather in selling a product like PEPSI display is more help it is an essential element because soft drink is bought a impulse on the spur of the movement. Thus the product is tested when it is brought at people's attention.
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(ii) Special event market:-
The dealer at special event sport places the banners and stall of Pepsi's products. Like picnic, Cricket match, social activities are also used to cater the people. It helps in promoting the sale as well as in creating an image of products.
(iii) Media planning :-
A very important part of advertising is to decide the medium of advertising and how much to spend in each media:
Newspaper
Radio
Television
Hoarding
Product of sales materials (paintings, glow signs D. Board)
Advertising is one of the important factors which all put together results sales. It has to be backed by the distribution network, effective servicing, dealer, goodwill and so on. Thus advertising has to be very carefully woven with the entire demands of marketing.
PROMOTIONAL ACTIVITIES CARRIED IN PATNA
Point of purchase (POP)
Special events (fair show, Road show etc.)
Hoarding
By newspaper, TV, radio etc.
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MERCHANDISING POLICYIn today’s fast moving industry and highly competitive market, only those products are likely to be
purchased which are capable of hitting the impulse of the consumers. The products appeal should be
able to penetrate and get embedded into the perpetual space of the consumer’s mind. The concerned
product should induce to the consumers. Pepsi believes that “Jo Dikhta Hai Wahi Bikta Hai” i.e any
product which is visible is bound to be sold.
METHODS OF MERCHANDISING:-
Visi-cooler placement
Glow sign board
Paintings
Crate stacking
Umbrella
Display
Special Schemes
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ADVERTISING STRATEGY OF THE COMPANY
The main motive behind the purpose of advertising of the Pepsi Co. is to
maintain the brand loyalty though recalling the memory of the users of soft drinks as to
attract the potential consumers who consume a soft drink. On the national basis the
media extensively used are: Newspaper, short advertising films, Radio, T.V etc.
Besides the advertising being carried out by Pepsi Co. Lumbini Beverages
Pvt. Ltd., Hajipur also carries out its own promotional programme of which
advertisement is an important aspect. The Lumbini Beverages Pvt. Ltd. is free to use
any media, messages, copy etc. as and when required by them but single factor which
remains the same as used for each Pepsi Co's bottling company on national level. The
main slogan being used by PEPSI Co. bottle all over India for its Cola Products has
been "The choice of new Generation". The main Model in the advertising is the Best
Cricketer - MS.Dhoni, Best Actors – Amitabh Bachhan, Shahrukh Khan, and Best
Actress – Karenna Kapoor, Pretty Zinta, and Deepika Padukone.
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YEAR WISE ADVERTISING OF PEPSI SINCE 1990
After entering in India PEPSI started their advertising in planned way to
full fill the objectives expressed by Vibha Rishi, Executive Vice
President, Marketing Pepsi India “Believe in advertising that leaves a smile
on your face "
IN 1990:-
The first commercial came on screen with actress Juhi Chawala and
Pop singer Remo. The theme was "Feel the music". "Are you Ready for the
Magic?". Went in the jingle and this ad ends with opening of Pepsi bottle.
IN 1992:-
The famous and unforgettable Punch line "Yehi Hai Right Choice Baby .... Aha!" was introduced with Remo and twelve year's old Penny vaz.
IN 1993:-
This time also Amir Khan, Aishwarya & Sanjana have done
the commercial on the theme "Can I have Another Pepsi. "
IN 1995:-
In this commercial when Akshay Kumar is given another soft
drink, then the kid in the audience shouts "Hai Akshay Pepsi" and he
gets back his magic. And this aid also ends with the same punch line.
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IN 1996:-
Here, the commercial shows the enthusiasm of Shahrukh to get Pepsi
for his friend. He dodges the dog and with this he tries to show that Pepsi is
the active choice to get for which the customer can do anything, and it is also
revealed by the line "Pepsi to Mai Pee Ke Rahunga".
IN 1997:-
In this year Pepsi celebrated the 50 years of
Indian Independence by the slogan “ Azadi Dil Ki”
with Sharukh and Azhar.
IN 1998:-
In this year Pepsi has again involve many
cricket stars for commercial with slogans “More
Cricket More Pepsi “, “Got a keep a cool ahead”,
“Generation
Next “. Beside this it has flashed many commercials
with Leander Paes and Mahesh Bhupati for Mirinda
(Orange). Mirinda for Mirinda (lemon) the commerce aid
done by the Bollywood star Amitabh Bachan gave tremendous real "Jhatka" to
competitor with help of punch line Jor ka Jhatka Dhere Se Lage" which is
ruling heart “Jhatka” throbbing of millions. Apart from all these commercial
Pepsi has sponsored many Sharjah Cup at Sarjah.
Pepsi Independence Cup in India.
Yanni Concert in Agra.
Asia Cup in Srilanka.
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In 1999:-
Worlds Cup ’99 was sponsored by Pepsi Co.
the aid featured Shahrukh Khan and Sachin
Tendulkar and the Punch line “Yeh Dil Mangay
More” became very famous.
In 2000:-
Aid featuring Shahrukh Khan
with Punch line “Yeh……more”.
In 2003:-
Aid featuring Fardeen Khan, Saif Ali Khan, Kareena Kapoor, Preeti
Zinta with the Punch line “Mausam Garam ‘Hai Pepsi Ke Liye Hum Beshram
Hai”
In 2004:-
The Yojana "Toss ka ho s" has been. Sponsored by Pepsi for
"ICC Championship Trophy in England in September. The winner of this Yojana
would get the opportunity to watch the toss with Saurav Group on the pitch.
After the collection of hundred coupons of "Toss ka boss"
In 2005 :- This time the commercial advertisements has been done by
Amitabh Bachchan, Shahrukh Khan., Sachin Tendulkar, Yuvraj Singh, Zaheer
Khan, Mohd Kaif etc. on the theme : ({Oye Rubli Oye Bubli".
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In 2007:-
ICC world cup was also sponsored by Pepsi Gold .But they are got
loss due to Indian Cricket Team.
In 2008:-
Ye Hai Youngistan Mere jaan
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CHAPTER-5
DISTRIBUTION CHANNEL OF “LUMBINI BEVERAGES PVT. LTD”
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
warehouse
distributors
Different Outlet Owners
Consumers
At first the soft drinks supplied to the company’s warehouse 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 or company’s warehouse..
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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. 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.
WAREHOUSING:-
Every company has to store its finished goods until they sold. A strong facility is
necessary because production and consumption cycles rarely match.
Warehousing is not a simply storing activity but a package of services that enables the
smooth running of the industry.
The stores must be in constant touch with the use department in order to provide
uninterrupted services to the manufacture and its decision since working capital is locked up
in the warehousing stores in equal to money.
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The stores functions can be organized in the following manner:-
a) To receive raw material components equipment’s etc.
b) To meet the demand of use department by issuing the order
c) Accounting the transaction properly.
d) Minimizing obsolescence surplus and scrap by right identification and using
correct preservation method.
The company supply finished products frequently to different distributors as per the
demand.
Every distributor keeps a minimum stock of different products of the product line so
that the uninterrupted supply could not affect.
In the industrial sector service of optimization where boils down to any exercise of
optimization where limited available resources are to be
Distributed equitably. The problem arises from the material that are in stock the form
of capital cost, storage loss, pilferage obsolescence, insurance, handling, documentation etc.
Services level that can be maintained and hence the concept stores in money should be
understood by everybody in the organization.
INVENTORY DECISION:-
(1) Branding and Packaging:-
Out of the total market activities some are directly performed and controlled by
“Lumbini Beverages Pvt. Ltd.” itself some are followed according to the standing
instruction of “Pepsi Foods Pvt. Ltd.
So far as the process of branding and packaging is concerned the “Lumbini
Beverages Pvt. Ltd.” Along with the authorized bottle in India adopt the same
pattern.
(2) Wholesaling:-
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Wholesaling includes all the activities involved in selling goods or services to
those who buy for resale or business use. Manufactures use wholesalers because
wholesalers can perform function better and more cost effectively than the
manufacture can. These functions are not limited to selling and promoting, buying and
assortment building bulk barking, warehousing, transporting financial risk bearing
dissemination of marketing information and provision of management services and
consulting. Like retailers wholesaler must decide on target market, product assortment
and services promotion and place. The most successful wholesalers are those who
adopt their services to meet and target customer’s needs, recognizing that existing to
add value to the channel.
(2) Retailing:-
Retailing includes all the activities involved in selling goods or services
directly to find consumer for their personal non-business use. A retailer or retail store
is any enterprise which sales volume comes primarily from retailing. All marketer
retailers must prepare marketing plans that include decision on target market. So the
marketing channels can be viewed as a set of interdependent organization with high
potential for conflict. Then why would any business chosen to become part of channel
system.
TRANSPORTATION: - Transportation is life blood of business management and
commerce. The purchase office’s job in incomplete until and unless he ensures that the
material is shipped from the vendor’s premises located in different areas to his organization.
Purchasing the transportation is a key element in his job particularly in the context of the
transportation cost. In deciding to transporting models shippers can choose from private
contract and common carriers.
Transport decisions must consider the complex tradeoff between various
transportation mode and their implications for other distribution elements such as
warehousing and inventory.
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DISTRIBUTION OF PEPSI:-
Here there are four systems of distribution channels:-
Channel 1. Manufacturer…………………………………………………Consumer
Channel 2. Manufacturer……………Retailer……………………………Consumer
Channel 3. Manufacturer………Wholesaler………….Retailer…………Consumer
Channel of distribution of Lumbini Beverages Pvt. Ltd.
By Lorry or Truck
A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION
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“Marketing channels are sets of interdependent organization involved in the process
of making a product or service available for use or consumption. “The main objective of the
marketing process is to distribute the products to the actual users. This function involves a
number of sub-functions to be performed by a producer or manufacturer. These two functions
are most important first, the creation of demand is made through the process of advertising
and sales promotion activities. On the other hand the distribution through the channels of
distribution. The decision relating to the channel of distribution is a very important decision
from the firm point of view because the selected channels affect considerable other marketing
decision. Such decisions are of long term nature and exercise their impact on the cost
structure of the firm also. By channel distribution mean the intermediaries or the process
through which the goods products are transferred from the producer to the ultimate users.
Now a day any of the producers possibly do not sell their goods directly to the final users.
There are a lot of intermediaries between producers and consumer, bearing a variety of name
performing various kinds of function. Some intermediaries like wholesalers and retailers buy
and resale taking the bill. They are known as merchant middle men and other are brokers,
representative sales agent who seeks or search for customers and negotiate on the behalf of
the producer but do not take of goods. These are called as middlemen. The manufacturer and
its distributive outlets share common objective to sell the manufactured products at a profit.
No doubt its objective differs with the marketing circumstance. Even though many variation
of specific objective fits into some categories. These are as follows:-
To build distribution network loyalty
To stimulate distribution
To develop managerial efficiency in distribution organization
To identify the source of supply for the product line at the
final buyers level
The channel of distribution is a structure which organized and presents a choice among
alternative channels of distribution of the different marketing situations faced by retailers,
whole sellers and producers within the structure. It may be considered as a series of function
which must be performed in order to make producers efficiency. To bearing maximum profits
of all institutions concerned a channel of distribution should be treated as a unit of total
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system of action. The activities of the manufacturer need to be coordinated with these
middlemen used in the distribution of given product.
The important of middlemen in channel of distributional can be over emphasized. It is that
who-
1. Collects concentrates the output of various producers,
2. Subdivides these into lot desired by the customers gathers various items together in
the assortment wanted and
3. Disperses the assortment to consumer industrial buyers.
The role of middlemen that of specialist in concentration equalization and dispersion
besides he side in the creation of the time from and procession utilities.
DECISION MAKING FOR CHANNEL
OF DISTRIBUTION
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The marketing executive must undertake to following steps in order to establish the channel
of distribution for a company.
1. He/She must understand the retail and wholesale market and type of middlemen
available in both.
2. He/She must understand the various conflicts which continually exist between and
within the channel.
3. He/She must select the general channel to be used keeping in mind the goals of the
company marketing programme and the job to be done by distribution system.
4. He/She must take decision regarding be intensity of the distribution (i.e. the number
of middlemen) to be used each level and each market.
5. He/She must select the specific firms which will handle his product and then manage
the day to day working relationship with them.
6. He/She must determine the methods and the procedure in firms (i.e. use of the
transportation and warehouse facilities and services in firms making programme) in
the physical distribution of the product.
Types of Marketing Channels:-
1. Direct marketing channel : A marketing channel that has no intermediaries level
2. Indirect marketing channel : Channels containing one or more intermediaries
Customer Marketing Channels:-
Channel 1.Manufacturer………………………………………………..…Consumer
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Channel 2.Manufacturer……………Retailer……………………………Consumer
Channel 3.Manufacturer……...Wholesaler………….Retailer…………...Consumer
PERFORMANCE IN PATNA
Patna has a significant role for Pepsi, in products are supplied by “Lumbini Beverages
Pvt. Ltd., Hajipur.’There are more than eight hundred including exclusive and nonexclusive
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outlets of Pepsi in proper Patna. The highest sale of this year ________35000__ cases was in
the month of May and total sale of this year was…250000…………..cases so far.
Hierarchy is also necessary to understand the capacity of Patna
Town.
HIERARCHY OF PATNA
Distributor Consumer Executive Sales Man Accountant Vehicle Labour
CHAPTER-6
REPORTANALYSIS
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CHANNEL TOTAL OUTLET PCI COKE PCI (%) COKE (%)
GROCERY 44 18 36 40 60
EATRY 24 9 15 37 63
COVENIENT 20 07 36 36 64
88
grocery eatery convenient0
10
20
30
40
50
60
70
PCI %COKE %
FINDINGS: - The above bar graph shows that 40% Pepsi is available in grocery
whereas coke is available with 60%.
37% Pepsi is available in entry whereas coke is available with 63%.
36% Pepsi is available in convenient whereas coke is available with 64%.
CHANNELS TOTAL PCI(AVG) COKE(AVG)
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OUTLET
Grocery 44 3 4
Eatery 24 3 3
Convenient 20 2 4
88
AVAILABILITY OF DIFFERENT BRANDS IN OUTLETS
3 3
2
4
3
4
00.5
11.5
22.5
33.5
44.5
CHANNELS
AV
ER
AG
E
PCI(AVG)
COKE(AVG)
FINDINGS: - The above bar graph shows that out of 88 outlets, the average brand of
Pepsi is 3 whereas coke is 4 in grocery.
In entry, the average brand of Pepsi as well as coke is same i.e. 3
In convenient the average brand of Pepsi is 2 whereas coke is 4.
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AVAILABILITY OF TOTAL PACKS "SKU" (AVG)
6 6
4
13
10
12
0
2
4
6
8
10
12
14
Grocery Eatry convenient
CHANNELS
AV
ER
AG
E
CHANNELS TOTAL OUTLETS
NO.OF PACKS(SKU)
PCI COKE
Grocery 24 13 06
Entry 20 10 6
convenient 44 12 4
88
FINDINGS: - The above graph shows that out of 88 outlets, the average number of
packs in pepsin is 13 whereas coke is 06 in grocery.
In entry, the average number of packs in Pepsi is 10 whereas coke is 06
In convenient, the average number of packs in Pepsi is 12 whereas coke is 04.
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FINDINGS:-The above bar graph shows that out of 88 outlets the average
chilling capacity of Pepsi is 118 whereas coke average is 259 in grocery.
In entry, the average chilling capacity of Pepsi is 106 whereas coke is 300.
In convenient, the average chilling capacity of Pepsi is 69
whereas coke chilling capacity is 82.
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GROCERY EATRY CONVENIENT0
50
100
150
200
250
300
350
Series 1Series 2Column1
CHANNELS TOTAL OUTLET CHILLING CAP.
PCI COKE
GROCERY 24 118 259
EATRY 20 106 300
CONVENIENT 44 69 82
88
STUDY ON RETAILERS
Retail Shop type:-
I. Monopoly Retail Shop : The shop selling only one company’s
Products
II. Mix Shop : The shop selling many company’s
Products
The retailers can build a great deal of goodwill for the firm. The marketing strength
depends on the strengths of retail dealers.
Research has conduct survey on different types of outlet like bakeries, cold drink
parlor, Booth and general stores etc.
According to his survey, the major reasons for selling Pepsi products are:
Brand Image 18%
Customer Demand 20%
Profit Margin 05%
Advertisement 30%
Good Quality 10%
Sales Promotion for Retailers 07%
Sales Promotion for Consumers 10%
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BRAND PREFRENCEPepsi products are most popular brand but Coke products are very dear brand of consumers
due to advertisement.
After the collection of different views from consumer which includes, servicemen,
students, and businessman and observing the sale of Pepsi products. The research has
calculated the preference consumption of different Pepsi products by the people of PATNA
Brand Preference of Consumers:-
Flavors % Consumption
Cola 49%
Orange 16%
Lemon 12%
Lime 07%
Mango 17%
49%
16%12%
7%
17%
15%
Cola
Orange
Lemon
Lime
Mango
7 Up
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Coca Cola
58%
Pepsi
42%
Pepsi
Coca Cola
STUDYING THE MARKET POTENTIAL
The market potential is an estimate of the maximum possible sales opportunities
present in a particular market segment and open to all sellers of a good and service or during
a stated future period. A market potential indicates how much of a particular product can be
sold to a particular market segment. Market potential can be determined by measuring the
sales in different areas. The data has collected from 100 outlets, which are situated in
different areas of Patna. According to that, the per day sale of Pepsi Products is 154 carats
and the per day sale of sale of Coke Products is 148 crates.
Per Day Sales in Crate of Products:-
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SWOT ANALYSIS
STRENGTH:-
The customer faith in Pepsi beverages results in creating a great demand for Pepsi in spite of
its weaknesses.
WEAKNESS:-
Improper supply of brand i.e. Pepsi
Low availability of chilled.
Timely supplies are not given to retailers.
OPPORTUNITIES:-
1. LBPL makes the process more convenient and efficient (it provides the Pepsi
product at required places i.e. direct to distributors and to retailers through
distribution).
2. The executive of company have more interaction with retailers to meet the need for
getting more information and advice for distributors/retailers/customers.
3. Replace market damages at regular intervals.
THREATS:-
1. Coca-Cola is putting up more chilling equipment’s to boost up the sale at all channels of
retails.
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CHAPTER-7
CONCLUSION
1. The whole analysis show that there are only two companies dominating in the soft
drink’s market Pepsi and Coca-Cola.
2. Coca-Cola has invested more in the market. Distribution of VISI coolers and display
of glow sign board but after that Pepsi give him very tuff competition.
3. Most of the dealers want glow signboard and chilling equipments, which they are
asking for long time.
4. In the cola segment thumbs-up and lime segment sprit is the main competitors of
Pepsi. But mountain dew lonely defeats them.
5. Due to high demand, there is crisis in the market.
6. Pepsi is more sweet and low fizz. Soft drinks that everybody knows and it is not like
by customer, to catch the customers.
7. Pepsi should provide more supporting goods which is helpful to enhance the market
share of the Pepsi.
8. Try to always satisfy the dialers which may be a big factor to enhance the market
share.
9. Should be a proper supply of Pepsi product in the market.
10. Should be proper interaction between dealers and company employee.
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11. Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in the market and its
market share is comparatively more than Coke.
12. The majority of the retailers deal in all brands of Pepsi and Coca-Cola.
13. One of the major drawbacks of Pepsi products is that all the flavors do not reach at
each and every retail outlets but competitors’ products do reach that is why
competitor enters in to Pepsi exclusive outlets.
14. It should be checked that whether our products is reaching to the outlets timely and
regularly or not.
15. There is irregular in the supply of Visi-cooler, some retailers, which sell more are not
provided Visi-cooler which some retailers, which sell less, are provided visi-cooler.
16. Most of the retailers are in need of board but not provided by the Pepsi Company.
17. Most of the retailer’s especially small retailers have complained that the sales man
does not inform about any sales promotional scheme.
18. The big retailers of Pepsi do not maintain the purity in the Visi-cooler and dictate
their own terms and conditions.
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SUGGESTION
Lumbini Beverages Pvt. Ltd. should introduce some change in its marketing function
and advertising to market more rational. The following factors to be worthy of
consideration:-
A complain Register should be provided by the company to every distributor in every
route so that, retailers/customers can write their problems. The complaint register
should be checked by consumer executive and depot in charge at time to time.
A clear notification should be given to teach distributor and each route agent to give
cash memo (with printed number) and maintain route card for every transaction.
Proper care should be given the company’s employees at the time of scheme close.
Signature of scheme receiving on the cash memo should be taken and it should be
also maintained in route card. Claim of scheme should be passed after the deeply
study of above three points i.e. difference between opening stock and closing,
signature of scheme receiving on the cash memo and sells maintained in the route
card.
Some retailers keep other companies products in the Pepsi’s fridge, while is provided
by the company. To check additional scheme be given in every month, in the peak
seasons After the checking of Pepsi’s Fridge (3or 4 times in every month ) if It is
found that retailer does not keep other companies products in the Pepsi’s Pepsi fridge
the claim of scheme should be passed . Thus we can improve/increase its sell and
employee’s activities.
The numbers of outlets are too much. So it is required to short the route and extra
vehicles/tricycles provide in this route.
Facilities provided by the company should be increased. Facilities requirements
should be fulfilled in all the rural and urban area properly after deeply study for
various aspects or retailers by the help of company employee and depot in charge.
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All these tricycles targeted the tired and thirsty consumer or the road and other place,
care should be taken that soft drinks in the ice box are always chilled and ice readily
available.
The vendors can also be provided with uniform by the company in order to give them
visibility.
An appropriate name should be given to these tricycles and properly advertisement
thus giving them some sort of identity.
Now a day with the introduction of tetra packs such as fruity, Tree Top etc. So
Lumbini Beverages Pvt. Ltd. should think of introducing such packs of its various
brands of beverages.
Lumbini beverages Pvt. Ltd. should be provided it’s the rural area also.
Coke is the only competitor of Pepsi. So we should try to keep every information
about Coke i.e. prices scheme, policy etc. always it will help in Decision making.
The company should promote its product through suitable benefits.
The company must respond quickly and constructively to the complaints to the
retailers, distributors as well as customers.
The company should provide its retailers the billboards for advertisement/ sales
promotion.
The company should take certain measures to improve its distribution channel in the
rural areas and various other places of Patna.
At last only this can be said that these suggestions are most important to use by the
Lumbini Beverages Pvt. Ltd. it would be pleasure for me and is certain that if these are
carried out by management , it will helpful in establishing the Lumbini Beverages Pvt.
Ltd. on a more stronger footing.
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APPENDIX
Glossary of Terms
Bibliography
GLOSSARY OF THE TERMS:-
FOBO - Franchise Owned Business Operation
COBO - Company Owned Business Operation
FMCG - Fast Moving Consumer Goods
MNCs - Multi National Company
GOD - Glass on Deposit
RBG - Return on Bottle G
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A STUDY OF RETAIL OUTLETS
AND THEIR
PROMOTION
QUESTIONNAIRE FOR RETAILERS
Name of the shop/outlet: ..................................................................
Address/Location : .......................................................................
Type of outlet : ........................................................................
(a) General Store (b) Pan Shop
(c) Sweet Shop (d) Lassi /Juice Shop
(e) Dhaba /Canteen (f) Others
l .Q. which is the Peak Season of Soft Drinks?
(a) Jan-Feb (b) March-June
(c) July-Sept (d) Oct- Dec
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3. Q. Are you satisfied with the behaviours of staff visit?
(a) Excellent (b) Good
(c) Satisfactory (d) Poor (e) Very poor
4. Q Do you receive the delivery of PepsiCo products in time?
(a) Yes (b) No
5. Q what is the percentage share of satisfaction of distribution of PepsiCo and coke?
(a) PepsiCo (b) Coca Cola
6. Q. What is percentage share of chilling equipment’s?
(a) Pepsi (b) Coca-Cola
(c) Own
7. Which company’s visi- coolers you have in your outlet?
(a) Pepsi (b) Coca-Cola
8. Q. Which products you always would like to have?
(a)PEPSICO
(b)Coke
(c) Both
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BIBLIOGRAPHY
In completing my project I have taken the help from following sources:-
INTERNET
From internet I have taken the help from various sites:-
www.pepsicoindia.com
www.pepsico.com
www.google.com
CONSUMERS, RETAILERS AS WELL AS DISTRIBUTORS
REFERENCES FROM BOOKS:-
Kotler, Philip, Keller, Lane (2005) "Marketing Management", Prentice Hall,
ISBN 0131457578.
Frey, A. (1961) Advertising, 3rd ed., Ronald Press, New York, 1961.
NEWS PAPERS & MAGZINE:-
The Times of India
The Economics Times
Hindustan Times
Business Today (July edition)
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