harshal borgaon-0315-plan for increase business in sluggish mkt

8/12/2019 Harshal Borgaon-0315-Plan for Increase Business in Sluggish Mkt.

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STUDY AND IMPLEMENTATION

OF ACTION PLAN REQUIRED TO INCREASE BUSINESS IN

SLUGGISH MARKET

FOR

PEPSICO INDIA HOLDINGS PVT LTD., BANGALORE

A DISSERTATION

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE

UNIVERSITY

SUBMITTED BYHARSHAL BORGAON

REG. NO.:- 03XQCM6042

UNDER THE GUIDANCE OFPROF. S RAMGOPAL

(FACULTY, M P BIRLA INSTITUTE OF MANAGEMENT, BANGALORE /

INTERNAL GUIDE)

MR. B N SATISH(ASST. MANAGER, PEPSICO INDIA HOLDINGS PVT. LTD., BANGALORE

/ EXTERNAL GUIDE)

M P BIRLA INSTITUTE OF MANAGEMENT, BANGALORE

ASSOCIATE BHARATIYA VIDYA BHAVAN


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M P Birl a Instit ute of Management, Bangalore - 2 -

DECLARATION

I hereby declare, that this project report titled Study and

implementation of action plan required to increase the business in sluggish

market at PepsiCo India Holdings Pvt. Ltd., Bangalore has been successfully

completed under the guidance of Prof. S Ramgopal, Professor, M P Birla Institute of

Management and Mr. B N Satish, Asst. Manager, PepsiCo India Holdings Pvt. Ltd.,

Bangalore, in partial fulfillment of Masters in Business Administration degree at

Bangalore University.

I further declare that this project report is the result of my own efforts and

that it has not been submitted to any other university for the award of a degree or does

not form the basis of any degree or diploma of other similar title of recognition in any

other university.

Place: Bangalore Harshal Borgaon

Date: 03XQCM6042


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ACKNOWLEDGEMENT

I am extremely grateful to all those who have shared their views,

opinions, ideas and experiences which have significantly improved this Project Report. I

would like to express my sincere thanks to Dr. K V Prabhakar, Professor, M P Birla

Institute of Management, Bangalore for his guidance and sincere efforts towards

bringing in years of his vast industrial experience into this project.

I would also like to express my sincere thanks to Mr. B N Satish, Asst.

Manager, PepsiCo India Holdings Pvt. Ltd., Bangalore, without whose constant support

and cooperation, this project would have simply remained a mere one.

I would fail in my duty, should I not extend my sincere gratitude towards

Mr. Anuj Chada, Marketing Manager, PepsiCo India Holdings Pvt. Ltd., Bangalore, who

showed me the way in the initial stages and critical phases throughout the project.

Last but not the least, I would like to extend my warm regards to my

family, friends and well wishers for their tremendous backing and valuable suggestions.

Harshal Bor gaon


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CONTENTS

CHAPTER I

EXECUTIVE SUMMARY 1

CHAPTER II

PROFILE OF THE COMPANY 4

Product Profile 9

Organizational Structure 10

CHAPTER III

RESEARCH DESIGN

Statement of the Problem 24

Objective of the Study 24

Scope of the Study 25

Operational definition of Concepts. 26

Sampling design 34

Methodology 35

Data Collection Tools 36

Limitation of the Study. 38


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CHAPTER IV

DATA ANALYSIS &INFERENCE

Retailers Data 39

CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

Major Findings 50

Recommendations 51

Conclusions 53

ANNEXURE

Select Bibliography

Questionnaire

Direction for further research


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LIST OF TABLES

PG

NO.TABLES

PAGE

NOS.

1 Tables Showing The Analysis Of 3 Territories

Class A 40

Class B 40

Class C 40

2 Tables Showing The Frequency Of Purchase Of Class A

Accounts In 3 Territories

42

3 Tables Showing The Frequency Of Purchase Of Class B


43

4 Tables Showing The Frequency Of Purchase Of Class C


44

5 Tables Showing The Retailers Would Like To Sell Only

Non-Aerated Soft Drinks

45

6 Table Showing The Most Popular Brands

Class A 46

Class B 46

Class C 46


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7 Table Showing Pepsi Visi Cooler

Class A 47

Class B 47

Class C 47

8 Table Showing The Important Reasons For Retailers To

Stock A Particular Brand

Class A 48

Class B 48

Class C 48


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LIST OF GRAPHS

PG

NO.TABLES

PAGE

NOS.

1 Graphs Showing The Analysis Of 3 Territories

Class A 40

Class B 40

Class C 40

2 Graphs Showing The Frequency Of Purchase Of Class A


42

3 Graphs Showing The Frequency Of Purchase Of Class B


43

4 Graphs Showing The Frequency Of Purchase Of Class C


44

5 Graphs Showing The Retailers Would Like To Sell Only

Non-Aerated Soft Drinks

45

6 Graphs Showing The Most Popular Brands

Class A 46

Class B 46

Class C 46


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7 Graphs Showing Pepsi Visi Cooler

Class A 47

Class B 47

Class C 47

8 Graphs Showing The Important Reasons For Retailers To

Stock A Particular Brand

Class A 48

Class B 48

Class C 48


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EXECUTIVE SUMMARY

The enigma of Marketing is that it is one of Mans oldest activities and yet

regarded as the most recent of the business disciplines

-Michael J. Baker.

Hadh Se Badi hai yeh pyaas

Sabse badi hai yeh pyaas

-Pepsi


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EXECUTIVE SUMMARY

War War War is it a battlefield? No, its a cool and cola war. Yes,

90s have seen a cold war with the entrants of Pepsi and coca cola, the two leading

soft drinks marketing companies that have their presence all over the world.

A century ago, the world would have never expected that the syrup

that cured the stomach disorders would quench the thirst of millions of people in

the form of aerated beverages. The soft drinks, which we normally consume in our

day-to-day life, were initially developed, as syrup for cure of stomach disorder

problems. The syrup was inadvertently mixed with carbonated water rather than

plain water. The syrup was later known as cola.

It is a defining moment in the worlds most ruthless corporate war,

yes they both sell sugar water, but PepsiCo and coca cola never were as similar as

most people believed. In recent years they have veered in completely oppositedirections while PepsiCo diversified increasingly into restaurants and snacks, coke

focused on soft drinks.

The Indian soft drinks market became a hot battle field when in 1993

coca cola came once again to India through venture with Parle and acquired Parle

brands which gave it access to the latter 53 odd bottling franchiser and

competition grew with Pepsi holding its strong grip in Indian soft drink market.

Perhaps nothing matters with the cola war, as far as the companies are providing

the Indian consumers the taste for their price and the market becoming more

competitive.


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The project titled study and implementation of action plan required to

increase the business in sluggish market is done to identify the market potential

and market share of Pepsi in these areas.

Dealers still rate Pepsi as the best brand available in the market but

60% of the dealers are not happy with the promotion activities of the company.

60% of the dealers are ready to invest more money during the promotion activities

of the company. 70% of the dealers have informed to the researchers that Pepsi

schemes are not conveyed to them on time.


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PROFILE OF THE COMPANY

Good guesses, Hunches, or Gut Calls do not spring from nowhere. They are

grounded in the information available and are formulated on the basis of how that

information is assessed

-Walker & Smith.

Yeh Dil Maange More!

-Pepsi


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INDIAN OPERATIONS

Pepsi began its efforts to enter the Indian market in the mid-1980s,

but was able to make an entry into the Indian cola market only in 1990. In early

1985, a proposal with the RPG group was rejected by the then government. This

involved the export of fruit juice concentrates from Punjab in return for the import

of cola concentrates. After more than five years of legal battles, Pepsi was finally

launched in India in June 1990.

The project was promoted by PepsiCo, Punjab Agro Industries

Corporation (PAIC) and Voltas. Later on July 21, 1993, Pepsi bought out Voltas'

entire stake of Rs 35.5 crore in Pepsi Foods for Rs 49 crore. This meant that Pepsi

now controlled as much as 92 per cent of the Rs.105 crore equity. Pepsi India is

engaged in seven areas of operation beverage manufacturing, bottling, backward

integration for vegetables and fruits, up gradation of food processing, exports and

export-led activities. Pepsi had a very significant first mover advantage in the

Indian market and quickly gained market share in the two years that precededCoca-Colas reentry into India. Currently, Pepsi India has a turnover of Rs. 2600

crore (Exhibit 2). It has a current annual growth rate (CAGR)of 29% .

The Pepsi cola international has three companies in India namely

Pepsi foods

PepsiCo India holdings

Pepsi cola India marketing company

The Pepsi food company sells the concentrate to the PepsiCo India

holdings where they Manufacture the product and sell the products to the Pepsi

cola marketing company who Finally sell the products through the help of

distribution to the dealers. There are nearly 33 units under which 16 units are


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company owned bottling operations whereas 17 units are franchisee owned

bottling operations.

Inform at ion about sales of pepsi

Total sales of Pepsi in Karnataka are 53 Lakh (approx.) last year.

Total sales of coke in Karnataka is 45 Lakh (approx)

Capacity of Nelemangla plant is 1200 bottles/ minute.

Contribution of sales of Pepsi product in Karnataka.

Kormangala territory - 24 Lakh salesYeshwanthpur territory - 12 Lakh sales

Upcountry territory - 17 Lakh sales

Market share of Pepsi in India is around 56%.


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EXHIBIT 2: PepsiC os Evolut ion in India

Year Milestones

1990 First Pepsi Produced

1991 7up and Mirinda Launched

1993 Slice and Teem Launched

1994 COBOization Starts - 3 in first year

19952 more COBOs ; Pepsi Cola emerges the Market

leader1996 Mirinda emerges Leader in Orange flavor

1998 Mirinda Lemon Launched

1999500 ml / 2 ltr pet bottles in use; Aquafina / diet

Pepsi launched

2000 Launch of 200 ml variants

2001 Mirinda Apple Launched

2002 Tropicana launched

2003 Mountain Dew launched


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EXHIBIT 3

Current annual growth rate (CAGR) = 29%


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PRODUCT PROFILE

Whats in Pepsi?

Pepsi (8 fl. Oz)

Contains: carbonated water, high

fructose corn syrup and / or sugar,

caramel color, phosphoric acid, caffeine,

citric acid and natural flavors

Calories 100

Total fat (g) 0

Sodium (mg) 25

Potassium (mg) 10

Total carbohydrates (g) 27

Sugars (g) 27

Protein (g) 0

Caffeine (mg) 25


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ORGANIZATION STRUCTURE

2.4.1 Regional Divisions

South Asian Business Unit

India

NorthMarketing

Unit

EastMarketing

Unit

SouthMarketing Unit

WestMarketing

Unit

Central

MarketingUnit

MaduraiBangaloreChennai

Up CountryYeshwantpurKormangala


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2.4.2 Bangalore Unit

Bangalore Unit

Up CountryYeshwantpurKormangala

Marketing

Manager

Operations

Manager

Finance Manager

Territory Development

Manager

CustomerCoordinator

Account DevelopmentCoordinator

CustomerExecutive

CustomerExecutive

CustomerExecutive

CustomerExecutive

Distributor Distributor DistributorDistributor


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M P Birl a Instit ute of Management, Bangalore 21

2.4.3 Flow of Goods

PatialaConcentrate

Plant

Nelemangala

Distributor

Retailer

Consumers


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India has been divided into three market units each acting as an

individual profit center. The regions can be broadly classified as South, west and

north and east combined. There are 5-6 manufacturing plant under one head. This

division is done based on size of each territory and various factors such as

potential sales, number of outlets, area etc.

The company has four main departments, they are

1) Production Department

2) Marketing Department

3) Personnel Department

4) Financial Department

PRODUCTION DEPARTMENT

Observation:

It was observed that the backbones of any plant for the matter are

following three departments.

a. Maintenance Department

b. Quality Control Department

c. Production Department

In absence of any of the above these are huge production losses. The

manufacturing plant is run by a plant manager, who is responsible for the entire

functioning of the plant. In this endeavor he is assisted by various other

department and their personnel like the General Manger, Production Manager,

Quality Control Manager, Engineers, Supervisor, shipping Executives and team

members in general. As the plant is fully automated plant the number of personnel

workers is minimum in around 160 to 175 workers who work in 3 shifts. That

means the plant is operated all 24 hours. Besides these the supporting departments


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are like the personnel and Industrial relation department, which looks after the

interest of the employees. Finance department, which takes care of the financial

department of the plant. During my 2 days visit to the plant, I have concentrated

on below mentioned 3 main department i.e., Maintenance, Quality Control and

Production department. The following are the observations department wise:

a) Maintenance department:

This is a very important department because is basically looks into

the smooth functioning of the Plant. All the 24 hours in the plant, the department

sees to it that the Boilers, the Refrigeration plant, Air Compression and Diesel

Generator are functioning smoothly. It has to work hard in glove with the other

two departments.

b) Quality Control Department:

Being a beverage plant and the product having only 3 months shelf

time the quality of the product has to be 100%. And water being the main content

of the product it has to be free from all the microorganisms. To take care of this

they use various types of filters, boilers and various water purifying agents like

chlorine etc. There is a full-fledged quality control Laboratory to check the

process. It was observed that if the quality of the product is lost at any point of

time the entire batch has to be discarded. This again leads to heavy losses in

production.

c) Production Department: This department gives the end result to the product only if the above-

mentioned departments have carried out their jobs properly. This is the department

where the actual filling of the bottles is been observed which is followed by

labeling, packing and filling into creates. As the product is filled in various


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capacity of bottles and pets. Care is taken where exact quantity of beverage is

filled in, the capping, the labeling is done properly. The actual process and the

procedure followed in the plant are as follows:

The shipping department first checks the total crates available and sorts the

bottles. It removes the broken or unwanted pieces and the crates are filled with the

empty bottles and sent to the production department.

The bottles are bought with the help of the forklift to the production

department where some members recheck for any foreign particles available, this

inspection is known as Deep Pallet. Later the loading of bottles takes place for

washing under different temperature of 70C, 75C and 80C and final touch with

clean and cold water.

The water is available from the bore-wells, as well as from the

tankers, the water is divided into two categories

Treated Water

Software

The treated water is used for making beverages where as the

software is used generating steam and bottle washing. The Quality control

department checks for micro organisms in the cold storage, if a free organism then

it is sent to the production to the ratio assigned to different drinks like Pepsi has

1:5 ratio where as 7 UP was 1:4 where 1 is the syrup and 5 or 4 is the water. These

diluted liquid is filled in the bottles.

At various stages random micro biological sampling is done to check

for micro organisms. The bottles are selected with the caps on which the rates are

written. Few members check whether all the bottles are having the same measure


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of liquid contents, whether the sealing is done properly or if there is any leakages

make final inspection.

The shipping department keeps a note of the total bottles available

and the total bottles dispatched, which later are sent to the warehouse and finally

to the dealers.


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BOTTLE WASHING PROCESS

BottlesEntry

PRE-RINSE WASHVol: 1200 litersTemp: 45deg

No detergent used

SOAK 1Vol: 6800 litersTemp: 50-55deg

1.5-2.5% caustic

PRE WASHVol: 6800 liters

Temp: 60-65deg2-2.5% caustic

MAIN SOAKVol: 23500 litersTemp: 70-75deg

3.5% caustic

HYDRO WASH

Temp: 50-55deg

No detergent used

PRE-FINAL WASH

Temp: 40deg

No detergent used

FINAL WASH

With ambient

temperature

Bottles ent

into fille


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MARKETING DEPARTMENT

The major types of Pepsi produced and marketed by Pepsi-Cola

India Marketing Company are as follows:

i. Pepsi

ii. 7 UP

iii. Slice

iv. Mirinda Orange

v. Mirinda Lemon

vi. Soda

vii. Pepsi Diet

viii. Mirinda Diet

ix. Aqua Fina (Mineral Water)

x. Mountain Dew

xi. Pepsi Blue

Marketing Pattern:

Once the Pepsi and the other related products have been produced

they undergo the finishing process i.e., to check the total bottles being dispatched

and the stock remaining. The shipping department in the manufacturing plant does

this work. Later the goods are sent to the warehouse or the Pepsi-Cola India

Marketing Company. The goods are distributed according to the orders given by

the dealers. The distribution pattern assigned to the route agents who are given a

fixed sale target for a day. They are assigned few areas where they cover up the

distribution of the whole range of products. The warehouses in the Pepsi-Cola

India Marketing hold more sock incase of excess demand. The promotion of the

product is done through different means. They are done during events like Rock


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Shows, Dhandia, etc. Conducting contest like Toss ka Boss or Sales force

contest does local trade promotion. The company provides free boards, banners

and hoardings leaflets to its dealers, which help in promoting the product. Any

new product, which is going to be launched, is done with a preplan where every

division conducts a meeting with the team members. The company even holds a

key account, which means the company itself organizes and sponsors shows in

places like resorts, clubs or any star hotels. The main Headquarters in Delhi takes

Magazine and Theatre, and the same in followed up further by the regional offices.

Major competitors of Pepsi-Cola India are:

The Coco-Cola, which produces different product, like Coco-Cola, Thumps

Up, Sprite, Mazza, Kinley Soda and Fanta.

PERSONNEL DEPARTMENT

Personnel Department of any organization mainly depends upon the

development of personnel in the Organization. Separate Department has been set

up in the Organization personnel or lately as Human Resource Development

Department. Pepsi has an excellent track record in Human Resource Management

and Development, since employees are the backbone of the organization, it has

development many programs and polices for its department in order to improve

employees morale as well as to achieve organizations over all objectives as a

whole.

Motivational training and welfare are accorded top priority in developing Human

resources. Employees are trained in Multi skills to upgrade their potential to

achieve targets. Investment in manufacturing facilities has been accompanied by

development of safe work practices. Facilities for healthcare, canteen, education,

and sports have been provided to increase motivational and performance.


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Objectives of Personnel Department:

i. Growth and satisfaction of the employees of the organ.

ii. Maintain an organizational climate conductive to human growth,

satisfaction and contribution.

iii. Create necessary environment for teamwork, energy and involvement of

all personnel for presenting the companys objectives.

Recruitment and Selection Procedure:

Pepsi follows a systemic procedure for the recruitment of their

personnel. They are two types PCI (PepsiCo India) and non-PCI. The company

maintains different grades of employees.

Training:

One of the key elements of HRD plan of the company is a

comprehensive training programme. Once the selection completed the employees

undergo a series of training programmes. This type of training is termed as, on the

job training measures:

Pepsi has various welfare measures for its employees:

i. Employing local men for skilled and unskilled jobs.

ii. Providing medical facility / camps and hospitals.

iii. Attendance Bonus.

iv. Incentive paid for reach the targets assigned.

v. Particularly for women they have started tailoring camps where they are

trained to sew and be as independent as possible.vi. The effluent water treatment plant where the water after treatment is

released for agricultural.

vii. Also through various sponsorship programmes they give chance to

upcoming talent and donate money for good cause like the Kargil Fund.


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e. General administrative expenses like traveling expenses and staff

Welfare expenses.

f. Insurance

g. Fleet cost like fuel cost, repairs and maintenance and depreciation.

h. Marketing equipment managing like repair and maintenance and

depreciation.


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RESEARCH DESIGN

The idea that you can merchandise for candidates for high office, like Break fast,

cereal, is the ultimate indignity of the Democratic process.

- Adlai Stevenson.

Life is Short.Live it up

- 7up


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Statement of the problem:-

Study and Implementation of action plan required to increase the business

in sluggish market (D J Halli).

Objective of the study:-

a) To know demand and supply of Pepsi in D.J. Halli area.

b) To list down the entire retailer name, address, phone no and to

know about their purchasing pattern.

c) To know consumer usage pattern, population, size, different subroute and different action required like what are problems of

retailer.

d) To make the availability of Pepsi product to retailer and compare

sales of our product from competitors.


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Scope of the study:-

Many Companies conduct market research to take some strategic

decisions like to Measure market potential characteristics of their markets and so

on Enhance credibility and reduce risk and there by making better profits.

The study under taken is very helpful and beneficial from PepsiCo

point of view because it helps in understanding customer preferences and attitudes

and there by helping in implement effective combo packages in restaurants. Also it

helps the company to know the feasibility and effectiveness of the project, and

would be a reference for similar kind of projects. All the above objective of this

research study provides a wide scope of benefit for the company.

This study is also beneficial to students and other organizations that

takes soft drink industry as a research study and also could be used for secondary

data or for reference.


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Operational definition of Concepts: -

1. Action:-

We collected retailer shop name, phone no and address. We

promoted Pepsi product. We asked the reasons why they do not have stocks of

Pepsi. According to them there was no supply, so our company opened a

distributor and gave different schemes on Pepsi. For selection of distributor we

listed out around 8 big retailers and at last we selected a retailer as a sub

distributor.

2. Observation:- First three days the sales were extremely good that was up to 35 to

40 crates. The next three days the sale was not too much due to climate (rain). We

have observed following sales trend of 10 days.

3. Statistics/ Recommendation:-

Market :Population : around 6000 to 8000

Area :Very small lanes and bylanes movement of 4 wheeler very difficult as the

roads are very narrow

Trade :highly credit oriented, and crates and credit at a high risk.

Market potential;: around 25000 c/s industry.

Mode of operation :one small auto 4 tri cycle.


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Action Plan:-

w Supply to start with 2-3 tricycle, from the sub-distributor.

w Scheme to be given for the general market on 200ml of 1c/s 2 bottle

openers will be given to all the outlets.

w Sub distributors to be given garget and additional cash or kind

incentive.

Here in D.J.Halli, the average sale is around 25 to 30 creates per day.

We can increase the sales by giving more schemes on our product. We should give

Pepsi board and other gifts properly. At last but not the least a trusted and loyal

salesman we should recruit for that area.


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HOW WE HAVE DONE

STEP 1

We collected retailer shop name, phone no and address. We promoted

Pepsi product. We asked the reasons why they do not have stocks of Pepsi..

CRTS VISI STOCK

SL.NO OUTLET NAME Pepsi Coke Pepsi Coke Pepsi Coke

1 Al-Amin store 0 3 - - - 1

2 Zam-L store 0 3 - - - 1

3 SLN store 0 8 - Yes - 8

4 Billal store 0 6 - Yes - 2

5 new modern store 0 4 Yes - - 10

6 Fiza store 0 2 - - - 1

7 Sadiq store 0 15 - Yes - 10

8 S.R store 0 4 - - - 2

9 H.F.S store 0 4 - Yes - 410 IFRA store 0 7 - - - 3

11 Saddiq store 0 4 - Yes - 5

12 Anwar store 0 7 - - - 8

13 National store 0 3 Yes - - 2

14 Dilkush dhaba 0 3 - - - 2

15 New khan store 0 4 - - - 2

16 Hussain store 0 9 - - - 4

17 Shakil store 0 10 - Yes - 2

18 Shakuntala store 0 10 - Yes - 3

19 Majid store 0 5 - - - 2

20 Sakhder store 0 2 - - - 1

21 Afrar store 0 4 - Yes - 2

22 Zehar cool bf 0 4 - - - 2

23 New jyoti Bakery 0 4 - Yes - 5


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CRTS VISI STOCK

SL.NO OUTLET NAME Pepsi Coke Pepsi Coke Pepsi Coke

26 RK store 0 5 Yes - 5 1

27 ZR store 0 3 - - 2 2

28 Kapil store 0 1 Yes Yes 4 4

29 K.G Enterprise 0 6 Yes - 1 1

30 Bashi ahamed store 0 2 - - - 3

31 Bismilla store 0 7 Yes - - 2

32 Farooq store 0 4 - - - 1

33 Aftab store 0 4 - - - 3

34 CNTNM store 0 2 - - - 3

35 Shajahan store 0 5 - Yes - 3

36 S.U.K store 0 4 - - - 2

37 Natoonal store stre 0 2 - - - 2

38 Madeena store 0 2 - - - 2

39 Fathima store 0 6 - Yes - 2

40 Shilpa store 0 3 Yes Yes - 2

41 Shafi store 0 30 - - - 15

42 Fazil store 0 5 - - - 2

43 D.Kamarnam store 0 3 - - - 2

44 N.K Traders 0 4 - - - 2

45 Iqbal store 0 4 - - - 2

46 Roshni store 0 3 - - - 2

47 Damaya store 0 10 - - - 3

48 habib store 0 5 - Yes - 1

49 Imtiaz Bakery 0 6 - - - 1

50 Anees Bakery 0 4 - - - 3


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STEP 2:

In second step we asked the reasons why they do not have stocks of Pepsi.

According to them there was no supply, so our company opened a distributor and

gave different schemes on Pepsi. For selection of distributor we listed out around 8

big retailers and at last we selected a retailer as a sub distributor. After that sales

increased. We have taken survey and found stocks of Pepsi at various retailer.

CRATES

SL.NO OUTLET NAME PEPSI COKE

1 Al-Amin store 2 3

2 Zam-L store 4 2

3 SLN store 1 2

4 Billal store 1 2

5 new modern store 3 1

6 Fiza store 4 2

7 Sadiq store 1 5

8 S.R store 1 3

9 H.F.S store 1 2

10 IFRA store 1 3

11 Saddiq store 2 3

12 Anwar store 2 4

13 National store 1 1

14 Dilkush dhaba 6 7

15 New khan store 6 6

16 Hussain store 3 9

17 Shakil store 2 4

18 Shakuntala store 3 2

19 Majid store 1 2

20 Sakhder store 1 3

21 Afrar store 2 4

22 Zehar cool bf 4 4

23 New jyoti Bakery 4 6

24 Azam store 1 8


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25 Richu Corner 1 2

26 RK store 1 4

27 ZR store 1 3

28 Kapil store 1 3

29 K.G Enterprise 2 4

30 Bashi ahamed store 1 2

31 Bismilla store 1 3

32 Farooq store 2 2

33 Aftab store 1 3

34 CNTNM store 1 3

35 Shajahan store 3 2

36 S.U.K store 2 2

37 Natoonal store stre 1 2

38 Madeena store 2 4

39 Fathima store 2 3

40 Shilpa store 3 3

41 Shafi store 1 1

42 Fazil store 1 2

43 D.Kamarnam store 1 2

44 N.K Traders 2 3

45 Iqbal store 1 1

46 Roshni store 1 2

47 Damaya store 1 3

48 habib store 2 3

49 Imtiaz Bakery 4 4

50 Anees Bakery 4 2


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STEP 3 :

In third step we observed that first three days the sales were

extremely good (up to 35 to 40 crates per day). The next three days the sale was

not too much due to climate (rain).

We have observed following sales trend for 10 days.


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SAMPLING DESIGN: -

1. Sample type & size: -

Sample size 50 (urban area)

Territory included Frazer Town (D J Halli)

2. Sample Type & size: -

Sample size 50 (Both rural & urban area)

Territory included Sunkadakatte.

3. Sample Type & size

Sample size 50 (Urban area)

Territory included Chamaraj pet

4. Field Work: -

The sample size for retailers was 50 in chamarajpet, 50 in

sunkadakatte & 50 in frazer town.

The respondent took 10 15 minutes to fill up the questionnaire.

Each respondent was personally met & explained the purpose of the study

& data was collected from them in a systematic manner.


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METHODOLOGY

1) Survey Method: -

Having decided to adopt a survey method to collect data for this

study, the next step is to decide on the type of survey consistence on resources like

time & money which leads to the sample survey. The survey is classified in to two

parts, viz.,

Exploratory study.

Descriptive study.

Exploratory Study: -

The main objective of exploratory study is to get the feel of the

market, products, competitive consumer. This helps in gathering primary

information used for descriptive study.

Descriptive study: -

The exploratory study laid the foundation for the descriptive study &

paved a way to a systematic study which led to achieve the objectives of the study.

A structured questionnaire was prepared & questions were both

open-ended & close-ended.


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DATA COLLECTION TOOLS

Analysis & interpretation of data is based on both the primary data

& secondary data.

Primary data:

Primary data was collected by means of a structured questionnaires

along with personal interviews, since a few open-ended questions require

classifications. The questionnaire contains dichotomous, objective & open-ended

questions.

Secondar y data:

Secondary data was collected from books, newspapers & magazines.

The secondary data is also collected from usage of computer internet.


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PLAN OF ANALYSIS

First the questionnaires were collected from all the respondents

(consumers & retailers) & tabulation was done on the basis of the primary data

given by the respondents. All the data collected were first segmented into different

categories & tables were formulated using tally bar method into the each variable

explaining the characteristics. The tabulated data were analyzed using percentile

techniques & inferences were drawn based on the marketing concepts.


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LIMITATION OF STUDY

The study is not proposed to be an expert study as it was done by a

student for the purpose of a partial fulfillment of the course in the in plant training,

which is an integral part, in completion and reward of MBA. The Study was

conducted in a short period of six weeks, and so the finding cannot be generalized

for all times. Some of the information's being confidential was not included in the

study. The scope of the study, by and large is very vast. It is difficult to satisfy all

the areas; therefore an attempt is made to cover as much as possible.


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DATA ANALYSIS & INFERENCE

The idea that you can merchandise for candidates for high office, like Break fast,cereal, is the ultimate indignity of the Democratic process.

- Adlai Stevenson.

Life is Short.Live it up

- 7up


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Graphs showing the analysis of three territories

Graph 1a

Graph 1b

Graph 1c

Inference: Graphs illustrate that the number of accounts in each territory being

classified in to A, B and C in which class A refers to one of the high potential

AccountsNo. OfRespondents Percentage

A Class 24 32

B Class 17 22.67

C Class 34 45.33


A Class 17 17

B Class 44 44

C Class 39 39


A Class 34 34

B Class 28 28C Class 38 38

24

17

34

32

22.67

45.33

0

10

20

30

40

50

A Class B Class C Class

No. Of

Respondents

Percentage

17

4439

17

4439

0

10

20

30

40

50

A Clas s B Clas s C Class

Series1

Series2

34

28

3834

28

38

0

10

20

30

40

A Clas s B Clas s C Class

Series1

Series2


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accounts, class B to middle level accounts having mid-size of potentiality in

stocks, class C refers to an account where petty and small business accounts

maintained in which stock is put according to their requirements. The territory

here is divided into Chamarajpet (50), Sunkadakatte (50) and Frazer Town (50).

It is clearly observed that Sunkadakatte territory has the most

number of class A accounts and class B accounts.


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Graphs showing the frequency of purchase of class A

accounts in three territories

Graph 2a (class a)

Graph 2b

Graph 2c

Inference: The graphs show that the class A accounts usually prefer to purchase in

a lesser frequency as compared to the rest of the classes.

FrequencyTwice aweek

Thrice aweek

No. OfRespondents 16 8

Percentage 66.67 33.33


Thrice aweek




Thrice aweek



168

66.67

33.33

0

20

40

60

80

1 2

No. Of

Respondents

Percentage

116

64.7

35.3

0

10

20

30

40

50

60

70

1 2

No. Of

Respondents

Percentage

23

11

67.64

32.36

0

20

40

60

80

1 2

No. Of

Respondents

Percentage


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Graph 3a( class b)

Graph 3b

Graph 3c

Inference: : The graphs show that even class B accounts also prefer to purchase in

a lesser frequency as compared to class C.

Frequency

Twice a

week

Thrice a

weekNo. OfRespondents 11 6



Thrice aweek




Thrice aweek



116

64.7

35.3

0

10

20

30

40

5060

70

1 2

No. Of

Respondents

Percentage

32

12

72.72

27.28

0

20

40

60

80

1 2

No. Of

Respondents

Percentage

20

8

71.42

28.58

0

20

40

60

80

1 2

No. Of

Respondents

Percentage


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Graph 4a( class c)

Graph 4b

Graph 4c

Inference: The graphs show that the class C accounts usually prefer to purchase in

a more frequent manner as compared to the rest of the classes.


Thrice aweek




Thrice aweek




Thrice aweek



116

64.7

35.3

0

10

20

30

40

5060

70

1 2

No. Of

Respondents

Percentage

30

9

76.92

23.08

0

20

40

60

80100

1 2

No. Of

Respondents

Percentage

27

11

71.05

28.95

0

20

40

60

80

1 2

No. Of

Respondents

Percentage


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Graph 5a

Graph 5b

Graph 5c

Inference: The graphs clearly indicate that none of the accounts would like to sell

only non-aerated soft drinks.

KindNo.OfRespondents Percentage

Aerated 73 73Non-

Aerated 0 0

Both 100 100


Aerated 86 86Non-

Aerated 0 0

Both 100 100


Aerated 79 79Non-

Aerated 0 0

Both 100 100

73

0

100

73

0

100

0

20

40

60

80

100

120

Aerate d Non-

Aerated

Both

Series1

Series2

86

0

10086

0

100

0

20

40

60

80

100

120

Aerate d Non-

Aerated

Both

Series1

Series2

79

0

100

79

0

100

0

20

40

60

80

100

120

Aerate d Non-

Aerated

Both

Series1

Series2


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Graph 6a

65

93

53

20 2650 39

72

16

4033

0

20

4060

80

100

Pepsi

Coca

-Cola

Thum

s-Up

Citra

Maaza

7Up

MountainDe

wSp

riteSlice

Fanta

Mirinda

Series1

Graph 6b

Percentage

91

64

43

20 26

50 4 8 4258

23

46

0

2040

6080

100

Pepsi

Coca

-Cola

Thum

s-Up C

itra

Maa

za 7Up

Mounta

inDe

Sprite

Slice

Fanta

Mirind

a

Graph 6c

61

93

66

20 2643

26

72

1640 33

020406080

100

Pepsi

Coca

-Cola

Thum

s-Up

Citra

Maaza

7Up

Mountain

Dew

Sprite

Slice

Fanta

Mirin

da

Brand

Percentage

Inference: The graphs show that Pepsi is the most popular brand

to be stocked by the Sunkadakatte territory retailers followed by Chamarajpet and

Frazer Town respectively.

Brand Percentage

Pepsi 65

Coca-Cola 93

Thums-Up 53Citra 20

Maaza 26

7Up 50

MountainDew 39

Sprite 72

Slice 16

Fanta 40

Mirinda 33

Brand Percentage

Pepsi 91

Coca-Cola 64

Thums-Up 43

Citra 20

Maaza 26

7Up 50MountainDew 48

Sprite 42

Slice 58

Fanta 23

Mirinda 46

Brand Percentage

Pepsi 61

Coca-Cola 93

Thums-Up 66

Citra 20

Maaza 26

7Up 43MountainDew 26

Sprite 72Slice 16

Fanta 40

Mirinda 33


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Graph 7a

Graph 7b

No. Of Respondents

56

2420

0

10

20

30

40

50

60

Pepsi Coca-Cola Own

No. Of

Respondents

Graph 7c

16

34

25

0

10

20

30

40

Pepsi Coca-Cola Own

Type

No.

Ofrespondents

No. Of

Respondents

Inference: The graphs show Pepsis Visi cooler in Sunkadakatte territory has more

percentage compared to the other territories.

CoolerNo. OfRespondents

Pepsi 28Coca-Cola 44

Own 28


Pepsi 56

Coca-Cola 24

Own 20


Pepsi 16Coca-Cola 34

Own 25

28

44

28

0

10

20

30

40

50

Peps i Coca-Cola Own

Series1


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Graph 8a

Graph 8b

34

67 78

20

020406080

100

Consumers

Demand

Discounts/Sc

hemes

Contractwith

thecompany

Lifeofthe

product

Graph 8c

Inference: It is clearly understood from the graphs that the most important reason

for the retailers to stock a particular brand is the Contract with the Company

followed by Discounts and Schemes provided by the respective companies.

Reasons No. OfRespondents

Consumers Demand 67

Discounts/Schemes 34Contract with thecompany 78

Life of the product 20

ReasonsNo. OfRespondents

Consumers Demand 34

Discounts/Schemes 67

Contract with thecompany 78

Life of the product 20

ReasonsNo. OfRespond

Consumers Demand

Discounts/Schemes

Contract with thecompany

Life of the product

67

34

78

20

020

406080

100

Consumers

Demand

Discounts/S

chemes

Contractwith

thecompany

Lifeofthe

product

Series1

31

72 65

20

020

4060

80

Consumers

Demand

Discounts/S

chemes

Contractwith

thecompany

Lifeofthe

product

Series1


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CONCLUSION AND RECOMMENDATIONS

Weakness comes from having to prepare against possible Attacks.Strength,

from compelling our adversary to make these Preparations against us.

-Sun Tzu

Yeh hi hai right choice baby! Aha

- Pepsi


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MAJOR FINDINGS

The study reveals about the promotional activity of PepsiCo, inBangalore rural and urban. There are two major companies of soft drinks industry

namely

o PEPSI

o COCA-COLA

There is a major fight between the two for the market share and each

will come out with different promotional strategies to lead the market. The

company services are excellent according to the accounts. It was found that

salesmen play a major role in the distribution and promotion of the product for

each of the company. It was also found that more than eighty percent of the outlets

sell soft drinks that include both Pepsi and Coca-Cola. The Pepsi companys Visi

cooler is having more percentage in Sunkadakatte while Coke enjoys more

percentage of its Visi cooler in Chamrajpet and Frazer Town. The retailers are

much interested about the company schemes rather than brand. The consumers

prefer their brand to be available at their arms length. So the company should aim

at reaching the consumers.


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RECOMMENDATIONS

1. Each sales man should be provided with cell phone for direct contacting

with T.D.M. & A.D.C.

2. A good relationship / family relation should be maintained by salesman

from retailers.

3. Customer executive should talk to retailer person at least one time in

month.

4. Opener, poster, icebox, gifts and many schemes should be provided for

small shop & retailers.

5. Each salesman should have complaint register. Each retailers problem

should be noted down and it should be rectified within 15 days.

6. Company can evaluate sales person by knowing no. of days worked by

him.

7. Company can fix sales quota and classify retailer into A, B and C class.

A class can be categorized into coke monopoly B class can be categorizedinto Pepsi monopoly and C class can be classified into both (Pepsi &

coke) customers. So we should identify customer who buys our product

and thus we can give better satisfaction.

8. Some of the respondents are ready to change their brands in case of non

availability of their favorite brand. Hence it should be ensured by the

respective brand managers that the availability of soft drinks in as many

outlets as possible. If not there may be a switch in the brand preference.


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9. The company should concentrate on giving incentives and gifts to

retailers to boost sales on regular basis.

10. The company should concentrate on effective advertisement to make the

product fast moving in the market, which would intern help, the retailer to

sell the products.

11. The company should provide sufficient advertising material to the

retailers to display Pepsi is available & thus generate business.

12. The company people like territory development manager & customer

coordinators should make a visit to the outlets at least once in a month to

handle the queries especially in rural areas.

13. The company should inform the retailers on time regarding all the

schemes in advance so that they can benefit them.

14. Most of the consumers of the soft drinks are students. Hence sponsoring

educational events will be a good promotional measure.


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CONCLUSION

The main aim of this study was to find out the most selling brand ofsoft drinks, also to know the reasons from the retailers, why they prefer to sell

particular brand of soft drinks.

From the consumers point of view almost all the respondents are

aware of the different brands of soft drinks available in the market. Pepsi has been

the most consumed brand of soft drink followed by Coca-Cola and Thums Up.

The reasons for consuming the soft drinks are taste, thirst quenching and

satisfaction attribute in all the age group. If their favorite brand if soft drink was

not available, the respondents would like to go for an alternative brand, so it is

essential that the brand is available at all point of purchases. The market share of

Pepsi was high in Sunkadakatte as compared to Chamrajpet and Frazer Town.

The retail outlets prefer to sell both the brands of soft drinks Pepsi

and Coke. The company services are excellent according to the accounts (outlets)

and we can conclude that there is need to carry on this through to keep the clients

together and delight them there by creating an everlasting relationship. It was

really a good experience under corporate exposure and I came to know the sort of

business trend and how the distributor works in marketing the product,

merchandising, monitoring the schemes.

The companys path to becoming the market leader in the soft drinks

industry lies in leveraging its flexibility to launch new products. The company is

moving in the direct direction by diversifying its business, especially into the

traditional foods sector. There is an urgent need for improving public confidence

following the recent pesticide controversy. The company can do this through


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succinct advertising stating clearly about the quality levels conformed to. The rural

market that contributes a small percentage of the companys sales at present has to

be exploited especially in light of the growth in income levels due to the

tremendous growth that the Indian economy has been enjoying.


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ANNEXURE

Select Bibliography including the Web sites used

w www.pepsi.com

w www.pepsicenter.com

w www.pepsico.com

w Marketing Management, Philip Kotler Millennium Edition.

w Research Methodology, Cooper and Schindler

w Marketing Team in PepsiCo India Holdings Pvt. Ltd., Bangalore
http://www.pepsi.com/http://www.pepsicenter.com/http://www.pepsico.com/http://www.pepsico.com/http://www.pepsicenter.com/http://www.pepsi.com/


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Questionnaire for Retailers:

1] Name of the Outlet:

__________________________

2] Address: ___________________________

___________________________

3] Type of Outlet:

a) Bakery f) Restaurant

b) Condiments Shop g) College / Office Canteenc) General Stores h) Parlour

d) Super Market i) Theatre

e) Pub / Bar j) Others, specify

4] Do you stock soft drinks?

Yes No

5] If yes, what kind of soft drinks do you stock with?

a) Aerated

b) Non-aerated

c) Both

6] Tick from the following brands of soft drinks, which you stock with?

a)Pepsi d)Citra g)Mountain Dew j)Slice

b)Coca Cola e)Sprite h)Thums up k)Fanta

c)7up f)Maaza i)Mirinda l)Lehar Soda


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7] Do you have cooler to stock the soft drinks?

Yes No

If yes, which one of these

a) Pepsi Cooler

b) Coca Cola Cooler

c) Own Cooler

8] Among the mentioned above brands of soft drinks that you stock which are the

top 5 most moving brands of soft drinks.

__________ __________ __________ __________

__________

9] Specify the reasons from the following for choosing to stock the mentioned

brands of

soft drinks.

a) Consumers demand e) Larger life period of the product

b) Lesser price f) Displays/ paintings/ hoardings ..

c) Contract with the Company g) Others, please specify

d) Discounts / Schemes __________________________


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10] If you do not have the brand of soft drink that the consumer demands then do

you suggest him / her the other brand?

Yes No Sometimes

11] Please specify the packing size of soft drink you stock:

a) 200 ml d) 500 ml

b) 300 ml e) 1 litre

c) 330 ml f) 2 litres.

12] Out of the following, which is the most preferred mode of packing soft drinks?

a) Bottle

b) Tin

c) Tetra pack

d) PET bottles.

13] Do you stock Pepsi brands?

Yes No

14] Average number of crates of soft drink of Pepsi brand sold per week?

Specify ___________.

15] Does the supply of the soft drink is on time?

Yes No


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