Final Dissertation Project Report-2013

Sales & Distribution of PepsiCo

Undertaken At:

SMV BEVERWGE,Pvt.Ltd.JAGATPUR, CUTTACK

Submitted for partial fulfillment of award ofB.B.A

BYJayagopal pandit

Rollno-66301ct10012

INTERNAL GUIDE Chandana Bharati

INSTITUTE OF PROFESSIONAL STUDIES AND RESEARCHCDA,SECTOR-6

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ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the opportunity to complete this project. I would like to thank my Institute authorities & my internal guide Chandana Bharati for providing me the opportunity to work with one of the most prestigious organization. I want to thank the Head of Training Department Mr. Sanjay Gupta for giving me permission to commence this dissertation project in the first instance, to do the necessary research work & to use departmental data & resources. I am deeply indebted to my Internal Guide Chndana Bharati whose constant help, stimulating suggestions & encouragement helped me in giving the final shape to this project .I would like to give my special thanks to my parents whose constant support enabled me to complete this project work.

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DECLARATION

I Jayagopal Pandit hereby declare that the Topic entitled- Sales &

distribution of PepsiCo is submitted in partial fulfillment of the

requirements for the degree of Bachelor in Business Administration,

IPSAR, Cuttack. Dissertation project is an original piece of work done by

me under the guidance of Chandana Bharati, Faculty, IPSAR; and has

not been submitted or published anywhere before. All educational

material collected in this study has been declared in the reference and

all the information given in the project is according to the best of my

knowledge and belief.

Place:Date: Jayagopal pandit IPSAR – 2010-2013

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Institute of Professional Studies and Research

CDA, SECTOR-6, CUTTACK

PREFACE

Marketing is merely a civilized form of warfare in which better are on with & gain words, disciplined thinking, and power of original ideas, forward vision & quick action couple with keeping in mind the customer desire. Having merely an understanding of customer is not enough today. The most difficult part of the whole nation is to retain those customers as brand loyal. In sharing sixties, companies could ignore their competitors because most markets were growing. The product is the most important tool in the marketing mix. Without a product, there is no question of marketing. The whole marketing programme is based on the product. The buyer purchases a product only because it serves the customer by satisfying his needs &

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desire & therefore, he pays for it. Thus, a product is a bundle of potential utility, because customer is more interested in the benefits he gets from the product rather than the product characteristics in a physical sense. Distribution channel & retail activity is a term in which every company & competitors are trying to eat each other’s share away. It is my great advantage that SMV Beverege Pvt.Ltd has given me this opportunity to understand the sales & Distribution activity of the company. I am highly obliged to receive this existing opportunity to work experience from such immensely cooperative, dynamic a challenging organization. I hope that you will appreciate with my work.

EXECUTIVE SUMMARY

PROJECT TITLE : SALES&DISTRIBUTION OF PEPSI

NAME OF THE COMPANY

: PEPSICO

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PLACE OF WORK : JAGATPUR,CUTTACK,ORISSA

ORGANISATION GUIDE

: Mr. SANJAY KU. GUPTA

INTERNAL GUIDE : CHANDANA BHARATI

MAJOR OBJECTIVE : TO KNOW THE OPPURTUNITY AND THREAT IN THE FIELD OF MARKETING

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CONTENTS

SL NO PARTICULARS PAGE NO

1 Introduction2 Objective of the study3 Scope of study4 Limitation of the study5 Research Methodology6 Company Profile7 History of PepsiCo8 About Soft Drinks Industry

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9 All PepsiCo Brands10 Mission, Vision of PepsiCo11 SMV Beverege Pvt.Ltd

12 Product Line of PepsiCo13 Brand of PepsiCo14 About the Topic15 SWOT Analysis16 Life Project in Cuttack.17 Data Analysis18 Suggestion19 Conclusion20 Bibliography

INTRODUCTION OF MARKETING :-

“The process of ascertaining consumer needs, converting them into a product or service & then moving the product or service to the final consumer or user to satisfy such needs & wants of specific customer segment or segments with emphasis on profitability, ensuring the optimum use of resources available to the organization. According to kotler “Marketing is a social &managerial function which includes

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individual&organization as a group obtains what they need, desire and what their organization could create through creating, offering and exchanging of products of value to others”. According to Stanton “marketing is a total system of interacting business activities design to plan, price and to promote the distribute want satisfying products &services to present& potential consumers”. According to me “marketing means, push the product to the market & pull the customer towards the business. we can say that the main aim of the marketer is to convert the want of the customer to the need of the customer. “Thus marketing job is to convert societal needs into profitable opportunities. Hence, marketing occupies an important position in the organization of a business unit. Today marketer, to courage face the same tough decisions but today’s market place is more complex. Domestic markets, at one time safe from foreign invaders are now happy hunting grounds of Giant Corporation as well as niche specialists. Major strides in technology have considerably shortened time& distance. New products are launched &astonished pace and are available worldwide in a short time. Communicating ones media are

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proliferating new distribution channels and formats keep appearing. Competitors are everywhere-and hungry.

OBJECTIVE OF THE STUDYTITLE:

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SALES AND DISTRUBUTION OF PEPSICO:

Geographical scope of the study is the Cuttack city. The data I have collected from 179 different outlets in different areas of the city. The main objective of the study is mainly concerned with Pepsi Company in finding out the position of the PEPSI Company in Cuttack market in the present scenario.

PRIMARY OBJECTIVE:

Find out the position of PEPSI Company in Pepsi market and the distribution of the company.

SECONDARY OBJECTIVE:

Find out the marketing channel of Pepsi Company and the mode of distribution.

To acquire the knowledge about how the different soft drinks are divided in the market of Orissa.

To know the stock position of Pepsi & its competitors.

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

To ascertain the performance of the Pepsi brand.

To know the market share of Pepsi product.To analyze the strength &weakness of Pepsi

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SCOPE OF STUDY:-Through this study company can know about

its growth.This study will also help to the company to

know about their new concepts position in the market.

This study will also help to the company to its promotional activities.

Through this study company will know about the availability of its products in the market.

LIMITATION OF THE STUDY:-

The major limitation of the study was that in depth study in the subject couldn’t be done due to time consideration.

The other limitations are:

The company doesn’t declare all the data and internal data are kept confidential.

Though every sincere and possible effort has been made to collect the data, some retailers, mostly betel shops were uncooperative in providing the data.

Even though some of the retailers were scolded me when I was talking about Pepsi.

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The study was small in size to gather accurate information about the project.

The project is done in Cuttack city may not represent the whole India.

Since the data collected was representative based, the accuracy was questionable.

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY:-

Research in common parlance refers to a search for knowledge.

Research may be defined a scientific and systematic search for pertinent

information on a specific topic. In face research is an art of scientific

investigation. Research is an academic activity and as such the term

should be used in a technical sense. According to Clifford Woody

research comprises defining and redefining problems, formulating

hypothesis or suggested solution; collecting, organizing and evaluating

data; making deductions and reaching conclusion; and at last carefully

testing the conclusions to determine whether they fit the formulating

hypothesis. Research is, thus, an original contribution to the existing

stock of knowledge making for its advancement.

The data can be collected in two ways:

i. Primary Data:

The data which is collected by the researcher personally from the

first-hand experience is known as Primary Data. Primary data were collected through the open end & a close

ii. Secondary Data:

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The data which is published or collected in the past or collected by other

parties is known as Secondary Data. Secondary data were

collected from the website of pepsi.com and some

management organizations.

Research plan :

To find out the stock of different flavor I divided Cuttack city some geographical areas and each part I visit 5 times to find out a particular sale of carets,pets,my can etc.

Research instrument:

Here the common research instrument is the questionnaire through which primary data is collected from different retail counters.

Contact method:

At first I directly met the retail counters and introduced myself as B.B.A student and then collected the data required for my project work such as name of outlet, address, type of shop, working hours, monopoly counter of Pepsi or coca cola or general, problems demands of each counter and at last quantity of each brand.

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Respondent:

General store.Betel shop.Restaurant.Fast food centre.Juice centre.Ice cream parlors.Grocery shop.Other shops.

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COMPANY PROFILE

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COMPANY PROFILE

Pepsi is one of the world's most famous brands

much like coca cola its rival Pepsi Cola was

originally called Brad's Drink after its creator,

Caleb Bradham, a pharmacist from North Carolina.

Pepsi was a carbonated soft drink he created to

serve his drugstore's customers. The new name,

Pepsi-Cola, was first used on August 28. The Pepsi

logo is a simple globe with the Pepsi colors in the

background and the word Pepsi in the foreground.

Pepsi has changed its logo and its slogans a

number of times since its introduction in 1898. The

Pepsi slogans through the years are listed below

 

1909-1939: Delicious and Healthful.

1939-1950: Twice As Much For A Nickel Too.

1950-1963: The Light Refreshment.

1953-1961: Be Sociable.

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1961-1963: Now It's Pepsi For Those Who Think

Young.

1963-1967: Come Alive! You're In The Pepsi

Generation.

1967-1969: Taste That Beats The Others Cold.

1969-1973: You've Got A Lot To Live, Pepsi's Got

A Lot To Give.

1973-1975: Join The Pepsi People Feelin' Free.

1975-1978: Have A Pepsi Day.

1978-1981: Catch That Pepsi Spirit.

1981-1982: Pepsi's Got Your Taste For Life!

1983-1983: Pepsi Now!

1984-now: Pepsi, the Choice of a New

Generation.

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HISTORY OF PEPSICO

PEPSICO HEADQUARTER:

PepsiCo world headquarters is located in purchase, New York. Edward Durrell, one of America’s foremost architects, designed the seven building complex. PepsiCo is a world in convenient foods and beverages, with revenue of about$27 billion and over 1, 43,000 employees. The building occupies 10 acres out of a 144 acre complex that includes the Donald M.kendall sculpture gardens, a gardens were originally designed by world famous garden planner, Russell page, and have been extended by François goffinet .the ground are open

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to the public, and a visitors booth is in operation during the spring &summer.

HISTORY:

The Pepsi cola company began in 1898, but it only became known as PepsiCo when it merged with Frito lay in 1965. PepsiCo purchased Tropicana in 1998, and Quaker oats in 2001.the brand was trademarked on june16, 1903, though pharmacist celeb Braham first made the drink on august 28, 1898.pepsi was originally intended to cure stomach pains.

In 1903, Braham moved the bottling of Pepsi cola from his drug store into a rented warehouse. This year Braham sold 7968 gallons of syrup. The next year Pepsi was sold six ounce bottles and sales increased to 19848 gallons. In 1905 Pepsi received its first logo redesigned from the original design of 1898.in 1923 Pepsi went bankrupt due to higher sugar prices as a result of World War 1,assets were sold and Roy c Megeral bought the Pepsi trademark. Eight years later, the company went bankrupt again, resulting in a reformulation of the peps cola syrup formula.

During the great depression, Pepsi gained popularity fallowing the introduction in 1929 of a

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10-ounce bottle initially priced at 10 cents, sales were slow, but when the price was slashed to 5 cents, sales increased substantially. During the year 1936-1938 the profit was doubled.

Founded: New York

Head quarter: Purchase, USA

Area survey: World Wide

Key people: Indrakrshinamurty Nooyi (CEO)

Industry: Food &Non Alcoholic Beverages

Revenue: USD43.251 Billion

Total Employee: 1, 85,000

Total Assets: USD 35.994 Billion

Total Equity: USD12.106

Net Income: USD 5.142 Billion

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CORPORATE CITIZENSHIP

PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive-ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PepsiCo employees volunteer.

FRITO- LAY

PepsiCo’s snacks food operations had their start in 1932 when two separate events took place. In San

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Antonio, Texas, Elmer doling bought the recipe for an unknown food product- a com chip-and started an early an entirely new industry. The product was Fritos brand com chips, and his firm became the Frito Company.

That same year in Nashville, Tennessee, Herman w.fay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with the product and changed its name to H.W. lay company. The Frito Company and H.W.lay Company merged in 1961 to become Frito-lay Inc.

Major Frito-lay products include ruffles, la/s and dortis brands snack chips. Other major brands include cheetos cheese flavored snacks, Tostitos tortilla chips, santitas tortilla chips, Rold gold pretzels and sun chips multigrain snacks. Frito-lay also sells a variety of snacks dips and cookies, nuts and crackers.

PEPSICOLA

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Caleb Bradham, a New Bern, north druggist, who first formulated Pepsi-cola, founded PepsiCo’s beverage business about at the turn of the century. Today consumers spend $33 billion on Pepsi cola beverges.Brand Pepsi and other peps cola products including Diet Pepsi, Pepsi one, mountain dew , slice sierra mista and mug brands – account for nearly one- third of total soft drinks sales in the united states, a consumer marker totaling about $60 billion.

Pepsi-cola also offers a variety of non carbonated beverages including Aquafina bottled water, fruit works and all sport.

Pepsi-cola began selling its products internationally in 1934 with aerations in Canada. Operations grew rapidly beginning in the addition to brands marketed in the United States like Miranda and Pepsi max.

GATORADE &TROPICANA

The company entered the concentrate orange juice Tropicana which was founded in 1947 by Anthony

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Rossi as a Florida fruit packaging business in 1949, registering Tropicana as a trademark.

The Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana pure premium, Tropicana seasons best, Dole juice and Tropicana twister. Internationally, principal brands include Tropicana pure premium and Dole juices along with fruit vita, looza and Copella. Tropicana pure premium is the third largest brand of all food products sold in grocery stores in the United States.

Gatorade sports drinks were acquired by the Quaker oats company in 1983 and became a part of PepsiCo with the merger in 2001.Gatorade is the first isotonic sports drink, created in 1965 by researchers at the university of Florida for the school’s football team, “The Gators”, Gatorade is now the world’s leading sport drink.

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QUAKER FOODS

The Quaker Oats company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry d. Seymour and William heston had established the Quaker mill company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figure of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker oats today.

In Cedar Rapids, lowa, john Stuart and his son Robert, and their partner George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as the oatmeal king, had founded German mills American Oatmeal Company in 1856.

The first major acquisition of the company was aunt jemina Mills Company in 1926, which is today leading manufacturer of pancake mixes and syrup.

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In 1986, the Quaker oats company acquired the golden grain company, producers of rice-a-roni.Pepsico merged with the Quaker oats company in 2001.

MISSION OF PEPSI

“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.”

VISION OF PEPSI

“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.

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PERFORMANCES WITH PURPOSE

At PepsiCo, we are committed to achieving business and financial success while leaving a positive imprint on society – delivering what we call performance with purpose.

Our approach to superior financial performances is straightforward- drive shareholder value. By addressing the environmental issues, we also deliver on our purpose agenda, which consists of human, environmental and talent sustainability.

ALL PEPSI COLA BRANDS

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ABOUT SMV DRINKS

M/s SMV drinks (p) limited is a well known manufacturing organization in the state of Orissa for manufacturing and sales of soft drinks since last 32 years. This unit was incorporated itself as a manufacturing unit in the year 1968 and started its production in1969. Since its inception the unit is engaged in manufacturing soft drinks of different brands.Intially they grew by manufacturing “coca” brands of the product. There after they took the franchise of “Mc Dowell” and since 1991 they have been

manufacturing “Pepsi” brand products.

It is the only bottling unit of “Pepsi” brand of product. In the state of Orissa Pepsi is brought to you by the renowned smv drinks pvt ltd, jagatpur (Cuttack) best professionally managed company promoted by the jaipuria group .the promoters for the last thirty five years in manufacturing national and world renowned brands such as Pepsi ,7up , slice, mirinda, mountain dew ,etc.has helped deliver to the customer consistent quality comparable to the best of international standards.

Today’s fast paced life style and ever changing Drinks style demand superior quality, ready to use in convenient packaging. The Pepsi drinks meet these demands.

PEPSI is the ideal choice for the both classes as well the masses for the individual consuming low quantities as well as high establishment. The seemingly vast gap in catering to a vast and varied consumer base

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has been bridged by introducing “contain no fruit in a hygienic convenient bottle packages.”

LOCATION AND AREA COVRRAGES BY SMV DRINKS

M/s SMVDrinks pvt ltd is located at jagatpur industrial area, 7 km away from Cuttack city, the old capital of the state of Orissa and heart of business activities in the state. The factory is situated on the bank of the river “Mahanadi”, the largest river in the state and in the side of National highway -5. The factory is also close to railway station and correctly located for transport of raw materials and finished products. The factory acquires 7.6 acres of land out of which 2.5 acres are built up for factory s plant and machinery and administrative offices.

SILENT FEATURE OF THE COMPANY:-

1. Date of incorporation :12.05.19672. Commencement of production :16.07.19683. Registered office :

jagatpur,cuttack-7540214. Production capacity : 38 lakhs crates

per annum 5. Go down stock capacity :1,20,000 crates6. Total land area : 7.6 acres

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7. Built up area : 2.5 acres8. Market covered : Orissa state

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DEPARTMENT OF SMVDRINKS

The bottling plant jagatpur, Cuttack is a franchisee operated bottling operation plant and is owned by the jaipuria group. Previously the goenka owned it .but it was brought over by the jaipuria and many infrastructures have been added since, not to mention the state of art plans with major automation.

SMV drinks do the bottling and the marketing division is Tripty drinks pvt ltd. At the top of the organization hierarchy is Mr. P.S Kumar (CEO), between known as BUM and business unit in the state.

The four departments of Tripty Drinks are:-

1. FINANCE2.TECHNICAL

3.HUMAN RESOURCES

4.MARKETING AND SALES

MR. SANJAY KUMAR GUPTA is the head of the sales with 15 year experience backing him up. Under him the other supporting bodies are:

Marketing Development Manager(MDM)

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Territory Development Manager(TDM)

Account Development co-ordinates(ADC)

Customer Executives(CE)

THE PROCESS OF MANUFACTURING

The process of manufacturing of Aerated water (soft drinks) and fruits juice under Pepsi brand is divided into mainly five parts such as:

Water treatment Syrup making Bottle washing Filling Crowning and coding Testing of the product

MARKETING SYSTEM

Product:

“Pepsi” carbonated water, sugar & added flavor package drinking water. Introduction of natural color drink is on the cards.

Positioning:

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Besides retailing, the company focuses on institutional sales, special event to make the product available for additional mileages.

Price:

The company maintains a steady price due to tight competition. It encourages more retail margin as compared to the competitors. However, company does not believe in compromising the quality of the product.

Promotion:

Schemes and incentives are also given keeping on eye on the competitive activity from time to time. Company has also introduced a consumer’s awareness scheme to create better brand awareness of the product.

Publicity:

A company as promotional measure for value sale gives publicity. Adequate point of purchase materials, adequate display materials and participation of important local festival are also part of the promotional measure of the company.

Channel of distribution:

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Distributors are appointed all over Orissa for marketing the product. Customer executives appointed by the company support them.

Marketing strategy:

Besides stamping the urban market, the company focus is on penetration in the periphery rural area.

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BRAND OF PEPSICO

RGB PET

PRODUCT

200

ml

250

ml

300

ml

500

ml

600

ml

1

lit

1.2

Lit

1.5

lit

2

lit

TETRA MY CAN

PEPSI y y y y y Y

7UP y y y y y Y

SLICE y y Y y

MIRINDA(O)

y y y y y Y

MIRINDA(L) y y

M.DEW y y y y y Y

AQUAFINA y y

EVERNESS y y

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DISTRIBUTION CHANNEL OF PEPSI

A distribution channel is a set of interdependent involved in the process of making a product or service available for use or consumption or industrial user.

We know that consumer of any age or sex engaged in any activity needs a proper distribution to make available everywhere.

If there is a proper feeding of the dealers, the company is in the better position to supply and satisfy that impulses demand of the customers. As the number of dealer increases, the dealer index goes down and the sales increases. Then also product will be available in more places and more accessible areas, as a result the consumption of product will increase. Therefore, the per capita consumption that is the average number of bottles consumed by a person over a year will increase .this of course means an increase in total sales.

A distribution system must have adequate number of vehicles and to supply the

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product at each and every outlet first. In Pepsi the coordination between channels is very good.

In Pepsi the company tripty drinks pvt ltd sale its product directly in cash. There is no credit system .and the distributor sales the product through personal vehicle to the outlet. So the main objective of the distribution channel is to cover up the wise area at proper time and in adequate quantity clearing up of all transactions having no bad debts and reducing the channel conflict by proper task clarity with targeted sales figure, job and necessary supervision of the work by the executives.

FOCUS ON MARKETING STRATEGIES OF PEPSI

The marketing strategy used by Pepsi involves the fallowing.

Focus on availability of product in market

Focus on availability of products in outlet.

Pepsi products visible to customersRegular market vigilance by market

developerDistribution of according to locality

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Focus on monopoly outlets. Aggressive outlets.Target core brands.Satisfy market priorities.

Focus on availability of product in market:

Pepsi works on “DIKHEGA TO BIKEGA” philosophy. This is the main formula for marketing strategy to each company. So availability of product in market is clear. For this reason, the market developer daily comes to the market to check the product availability.

Focus on availability of product in outlet:

There is a difference between availability of product in market as well as in outlet. So Pepsi wants its product to be available in each outlet in the market.

Focus on visibility of Pepsi products in outlet:

The aim of Pepsi is that its product should visible to the customers so it gives VISI-COOLERS &rack to outlets. Availability of visi-coolers &rack ensure that more &more products are visible to the customers.

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Regular market vigilance by market developer:

To know the position of Pepsi products in the market, Pepsi appoints some executives those go to the market &check availability of products, take care of company assets, check visi-coolers, talk to outlet owners about any problem &take feedback about the product.

Distribution of product according to locality:

Pepsi distributes its product according to locality. Say for example it distributes more RGB in an area where there are more bars &restaurants.

Focus on monopoly counters:

Outlets which sales only Pepsi products are known as MONOPOLY outlets. These monopoly outlets give more sales to the company .so company gives extra schemes, discounts gifts to those outlets.

SCHEME IN PEPSI SOFT DRINKS

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REFILLING SCHEME: for the retailer purchase of 1 case of RGB (Returnable Glass Bottle) two or three bottle free.

SCRATCH CARD: For the retailer winning prize by scratching lucky coupon.

UTC: (under the crown) for both the retailer as well the customer will get the amount coded under the crown.

QPS: (quantity per sale) this scheme is only for the retailer to motivate for high selling volume. In this scheme the will get free bottles according to the cases of PET, RGB CAN and AQUAFINA.

KEY ACCOUNT: In this scheme the company ties up with mall, restaurant, big retail shop and hotel on the basis of annual sales volume. The company may tie up to Rs.10 or Rs.25 per case selling.

CARD ACCOUNT: Under the scheme the company ties up with betel shop, small shopkeeper, retail outlet at Rs.3 or Rs. 4 or Rs.5 per case of selling.

DISPLAY SCHEME: Under this scheme company give gift to the retailer who displays the Pepsi products in the visi very well.

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SWOT ANALYSIS

SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level &frequently appears in marketing plans.swot stands for strength, weakness, opportunities and threat.

STRENGTH:

Brand image of the company Market share of the company The staff of the companies are very

corporative Operational capacity of the company Variety of scheme for retailers

throughout the year

WEAKNESS:

Taste of Pepsi is not so good in compare to Thumps-up.

High demand low supply Low market share in peak season Poor feedback from the retailer

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OPPORTUNITY:

Giving more offer to the retailer Retailer will get the maximum profit Profit margin will be good by

adopting update &aggressive marketing strategy

THREATES:

Competitor may come with new strategy

External problem may affect company image

Breaking of Pepsi monopoly outlets Market demand very seasonal

LIVE PROJECT IN CUTTACK MARKET

During my project period, I worked in the Cuttack market with the fallowing team:

1) Mr. Sanjay Kumar Gupta(head of sales)2) Mr. Ashwini Dash (Territory development

manager)3) Mr. P. Swain (Account Development Co-

ordinate)4) Mr. Ashish Rath(Customer Executive)5) Lullu Behera(Sales Person)

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6) Muna Moharana (Sales Person)7) Chotu (Sales person)

PROCESS IN WHICH I WORKED:

First, I travelled with the Ashish sir (customer executive) to know the area covered by the distributer for two days.

After knowing the area properly, I tried to touch each and every PEPSI outlet everyday so that Pepsi monopoly counters get adequate stock every day.

During the period, I made sure that schemes are given properly to the retailers which included educating retailers to the benefits of the scheme &in the process increase the sales.

I did plannogram for visi-coolers and ensured that at least 5 plannograms are done per day.

Then I worked on to make Pepsi product available in and every outlet of my area

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.it was during this period when I cracked coke outlets.

I also visited coke counter to bring order by using the scheme offered that time.

I also developed new counters for Pepsi during my period of work.

During this period, I also maintained DSR &EDSR REPORT.

During the period, I motivated some of the coke counter to keep Pepsi products& finally they agreed to keep it.

I really thankful to Ashish sir for giving his support to me throughout project period in respect of both on the job &off the job case.

CUTTACK DISTRIBUTORS PROFILE

There are 12 distributors operating in Cuttack.The details about the distributor under which I worked.

Name: Sree Ram Associates.

Address: Badhei Sahi, Buxi Bazaar, Cuttack.

Staff employed: 7

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Manager: 1, Sales Person: 2, Drivers: 2, Officials: 1, Labors: 1

Vehicles: 2(1 Ace &1 Mahindra auto)

AREA COVERED

Mangalabag ,Rani Hat, Medical Road, Ring Road, Kathagola Sahi, Friends Colony, Nuapatana, Nayak Sahi, Bania Sahi etc.

SCHEMES GIVEN DURING THE PERIOD

PERIOD SCHEMES GIVEN

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13/08/2012 1BTL 600ML FREE ON 3CS 2BTL 200ML free on 1PET others.

20/08/2012 1BTL 600ML FREE ON 3CS 2BTL 200ML free on 1PET others.

27/08/2012 1BTL 600ML FREE ON 3CS 2BTL 200ML free on 1PET others.

03/09/2012 1BTL 600ML FREE ON 3CS 2BTL 200ML free on 1PET others.

10/09/2012 1BTL 600ML FREE ON 3CS 2BTL 200ML free on 1PET others.

15/09/2012 1BTL 600ML FREE ON 3CS 2BTL 200ML free on 1PET others.

DATA ANALYSIS

In order to know the market share of the Pepsi, survey work was conducted in the month of AUGUST, 2012. The functioning of 320 outlets in Cuttack city was examined and the result after interception is revealed later in the study. I have

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personally visited to the 168 outlets in Cuttack city and collected the data through questionnaire and direct interviewing with the retailers. My data was regarding the selling of the two main brand in Orissa that is Pepsi-cola limited and Coca-cola limited.

After assimilating, recording, classifying, analyzing, interpreting and finding, final conclusion has been drawn. It is concluded that.

The demand of Pepsi is less than compared to the thumps-up.

The demand of slice is more than mazza. But in case of sprite, it is more demanded

than 7up.

So in order to increase the growth of market share and sales, taste and preferences of the consumers are to be highlighted and to be taken in to prior concentration. Hence in order to know the most preferred flavor according the stake a survey is organized.

For a successful survey work certain points are to be taken into consideration. It is of immense of importance that nobody spares valuable time for the survey purpose. For, this time factor is to be kept in mind and accordingly the questionnaire

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prepared. Since the research was conducted in Cuttack city being the busiest city, I had to plan the survey in such a way so that less time was required by a respondent to complete or fill up the questionnaire.

The analysis divided into to two subparts:

o Analysis of data collected through questionnaire.

o Analysis based on different shop in different areas.

A total of 179 outlets were surveyed with the fallowing questionnaire:

o Status of outleto Type of outleto Annual volume of the outleto Visi availability of outleto Total filled RGB in the outleto Total pet available at the outleto Total water cases available at the outleto Best distributor services providedo Best scheme giveno Best company people visito Availability of GLOW signboard

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o Promotional scheme that is appreciated by retailer

o Remarkso Service frequency

Number of cases available in the Cuttack market

Cuttack market

Coca-Cola PepsiCoProduct Total % Produc

tTotal %

Coke 180 4.73 Pepsi-Cola

530 14.48

Thums Up

750 27.59 7Up 1250 34.15

Fanta 420 11.03 Mirinda 525 14.34Sprite 1355 43.49 Slice 970 26.50Limca 140 3.67 M.Dew 385 10.51Mazza 360 9.46Total 3205 Total 3660

Coca-Cola & PepsiCo products availability in the market

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Position of both PepsiCo & Coca-Cola products in the Cuttack market

Market Position Products1 Sprite2 7up3 Thums up4 Slice5 Pepsi-Cola6 Mirinda7 Fanta8 Mountain Dew9 Maaza

10 Coke11 Limca

Market Share of Pepsi Vs Coca-Cola available in Cuttack

Brand Total Bottle found %PepsiCo 3660 57.00

Coke 3205 43.00

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6865 100

FINDINGS:

Getting customer is not a difficult task but to retain these customers is a difficult task.

The behavior of sales people highly matter for increase the sales

The sales person were cheated the retailers as they were not given the offers in a proper manner to the retailers.

Most of the outlets have been demanding the visi of Pepsi but they have not got it yet.

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Most of retailers complained that the products were not provided adequately during the peak or season period.

Short term sales increases required to reduce inventory promotion that give large immediately benefits such as money off or bonus pack.

Sales promotion offers like price –off or free gift induce customers to buy more and more products.

Most of the retailers were unhappy with the service frequency of Pepsi.

Sales promotion can be measured objectively to judge their success.

The survey revealed that about 90% of the total outlets are non –seasonal outlets, which means they sales the products throughout the year. On the other side about 10% of total out lets are sales our product on the season only.

This survey also revealed that most number of exclusive counter of Pepsi than that of coca –cola exclusive counter.

The out lets are mostly focusing on glass bottle (i.e.RGB) after that they focus on plastic bottle (i.e.PET, CAN, mineral water soda etc).

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The retailer appreciates mostly two type of promotional scheme (i.e.UTC or refilling) because these two schemes, outlets owner gets on the spot of purchase from the sales person.

Some of the coke counters are interested to keep the product of Pepsi. But there is no effort made by the Pepsi Company.

The study also suggested that most of the outlet owner demanded for large visi –cooler of Pepsi to keep huge amount of product.

SUGGESTION

Proper knowledge should be given to the salesman about the promotional scheme so

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that they can better understand the importance of promotional activities.

There should be proper regulation on time management for the distributors, so that distributor will open the agency on time.

The distribution should be a within proper interval, so that there is no shortage of products in the market.

There should be a regular meeting between distributor & company about the implementation of sales promotion.

The company should give priority the demand of the retailers.

The company should provide the necessity of visi -cooler to the aspired outlet owners.

Company should make an open interaction for the distribution so that they feel that they are the part of the organization &they will never hesitate to give scheme to the outlets.

There should be proper assessment classes for the distributor so that proper work should be maintained & up to dated.

There should be proper dress codes for the salesman and the driver/.

There should be time schedule for the meeting between top level management &C.E.

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Fast repairing of visi cooler will gain the faith &goodwill of the retailer.

Company should provide racks to keep pet bottles for display.

Company should give the facility to provide visi cooler outside the store so that the display will easily do &it is helpful for those stores where the space is a constraint.

Retailer’s feedback should be taken about the customer behavior about various brands.

Efforts should be made to bring more and more monopoly Pepsi counter.

The company should have to take a sincere effort for the supply of products in peak or season period.

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CONCLUSION

The aim of my project to learn about sales and distribution strategy of Pepsi Company. Because I have a deep interest to know the various sales and distribution of FMCG sector. My observation was the demand of Pepsi was slightly less than that of thumps-up. It also revealed that the shares of sprite have an advantage over maaza but slice is very low in the peak season that should be taken into consideration.

It was found that the have better scheme in Cuttack city as well as all over the world.pepsi has a wide variety of product line in comparison to coca cola ltd.M.S Dhoni the ambassador of PepsiCo has targeted the young generation.

The survey revealed the some of the points:

It was found that 40% outlets are coke exclusive, 20% outlets are Pepsi exclusive and the rest 40% are mix counters.

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It was found that 49% of the outlets were having visi of coke, 30% of the outlets were having pepsin visi and the rest 21% were having own visicoolers.

The mineral water availability of both Pepsi and coke stand at 10%, 12% respectively.

It was found that most of the outlets were keeping RGB of Pepsi as well as RGB of coke.

The availability of Pepsi pets were more than that of coke pets during the survey period.

In respect of scheme, the Pepsi has an edge over coke.

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BIBILOGRAPHY

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BIBILOGRAPHY PHILIPS KOTLER Principle of

marketing GARY ARMSTRONG principle of

marketing VSP RAO strategic

management V HARI KRISHNA strategic

management V S RAMASWAMY marketing

management S. NAMAKUMARI planning

&implementation

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S DAM RAJENDER The real pepsi,the real

Story (journals and magazines)

C.R KOTHARI Research methodology

WEBSITE ADDRESS:

www.pepsiworld.com

www .pepsico.com

www.pepsiindia.com www.pepsifoods.com s

www.pepsilogo.com www.google.com

QUESTIONNAIRE

OBJECTIVE: To find out the market share of Pepsi.

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(Please attempt the entire question by marking circle)

1.Name of the outlet:……………………………………………………………..

2.Address :………………………

……………………………………..………………………………………………………………………………………….

3.Name of the retailer:…………………………………………………………….

4.Contact number :………………………………………………………………

5.Which company product you are selling more?(a) Pepsi (b)coke

6.How much filled RGB stock of Pepsi you have? (Specify)……………………………………………………………………………………………

7.How much filled RGB stock of coke you have?(specify)…………………………………………………………………………………………….

8.How much filled pet stock of Pepsi you have?(specify)…………………………………………………………………………………………….

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9.How much filled pet stock of coke you have?(specify)…………………………………………………………………………………………….

10. Which company rack you have?(a) Pepsi (b) coke

11. Which company giving you better service?(a) Pepsi (b) coke

12. Which company giving you better scheme?(a) Pepsi (b) coke

13. Which brand of water do you sale more?(a) Pepsi (b) coke

14. What is your annual sale volume of Pepsi?(specify)

……………………………………………………………………………………….

15. What is your annual sale volume of coke?(specify) ………………………………………………………………………………………..

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BRAND AMBASSADOR OF PEPSI