PRINCIPLES OF MARKETING

PROJECT REPORT ON

NEW

PRODUCT DEVELOPMENT

BY

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PREFACE

Marketing is matching customer needs with the offering of

the Company or in simple words it is “meeting needs profitably”.

There are different factors which influence the sale of goods. A

number of variables come into play when we consider the sale of

C.S.D.(Carbonated Soft Drink ) products. The basic reason for this

is seasonal affect on purchasing the product, slowly resulting in the

consumer loyalty and the relationship between dealers, distributors

and the company.

Some other important variables that affect the C.S.D. products

are:-

Visibility of the product

Feasibility of the product

Availability of the product

Perceived quality of the product

Distribution channels used

Distribution is the channel that bridges the gap between an

organization and the end user/customer. This bridge has to have a

strong foundation and has to be repaired from time to time. Those

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companies that pay too little attention to their distribution channels

suffer damaging results.

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KEY AREA

The key area of my research report was “The study of

promotional activities & channel distribution of PEPSI”. The

company had divided his retail outlets on the basis of area wise and

character wise. Each of the division is having mainly three types of

outlets.

1) AREA WISE: - The area of my Research report was “PEPSI.”

and according to the company the whole training area was inner

circle, outer circle, & intermediaries.

2) OUTSKIRTS: - These areas are quite away from the main

city and the main market, or the interior areas of the town.

3) CHAR ACTER WISE: Again there is a division of outlets on

the basis of characters (type of work done by the retailers) and

there are again three types of outlets.

CONVENIENCE OUTLET: - These types of outlets include

general stores, beetle shops, stationary shop, medical shop and

such type of other shops.

GROCERY OUTLETS: - These types of outlets include grocery

stores which indulge in selling of foods and related things used in

the home.

EATERY: - It includes restaurants, fast food joints etc

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SIGNIFICANCE AND THE NEED OF THE STUDY

Market research is concerned with the authentic and objective

collection, analysis and evaluation of information about specific

and practical aspects of marketing problems in order to help the

management in making effective decisions. Market research is not

an end in itself but it is a means to an end.

My study on this project will help us to know its strengths and

weaknesses with respect to the Packaged Water market and to

make strategic future decision to improve its market awareness and

penetration and thus finally enhance its sales.

Primarily this study will enable the company to evaluate its

position among the competitors in respect to all the

important factors related.

Secondarily this study will enable the company to develop a

fruitful correspondence with the leads generated during the

tenure of the study conducted.

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OBJECTIVE

To study the Marketing Strategy market share of PEPSI

Aquafina.

To study the dealers and retailers sales trend, of Package

Drinking Water industry and their products.

To determine the visibility of the Aquafina on the dealer

outlets.

To determine the preference levels of Aquafina in

comparison to the others.

To find out the dealers’ perception about the Pepsi product.

To find out the various factors influencing purchase of the

Pepsi

To find out the expectations of the dealers from the company.

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LIMITATION

As a student of management it is very essential for me in

shaping my practical knowledge about the existing market

position of the various brands of Packaged Water.

However this study has certain limitations which can be

attribution to various factors.

Time limit is not sufficient enough to collect all the data to

complete the project report. The topic itself is quite extensive

.It needs comparative analysis and study, which is quite

impossible within the time limit.

Some confidential information are not allover to be analyzed

which might have more relevance from the study angle.

Some retailers are not alternative when they will fill up the

questionnaires.

The Major limitation is that the retailers as well as some

people are hesitant to provide certain information.

. This project done in Ranchi but it doesn't include the rural

areas. As we did not get an opportunity to go outside of

Ranchi.

The project done in Ranchi may not represent the figure of

whole India.

The study was small in size together accurate information

about the project.

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METHODOLOGY

Marketing research is the backbone of marketing. The main

objective of my study was to get information from the dealer

regarding the sales of the Aquafina Packaged Drinking water of

Pepsi, and to look at the other feasible channel for the sales of

those products.

Meaning of Research: Research in common parlance refers to a

search of knowledge. One can also define research as a scientific

research for pertinent knowledge or information on a specific

topic. This is a systematic and objective identification, collection

of data, analysis, dissemination and use of information for the

purpose of assisting management in decision making related

identification and solution of problem in the market.

Sources of Data :

Data, which is a vital aspect in any research, has been

colleted through various resources. The sources range from the

company to the customers. This has been segregated under two

heads.

Primary Data :

Primary data is the first hand information which has been

collected directly from the retailers. This data has been obtained by

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administering two questionnaires: one for Every Dealer Survey and

the other for Brand-Pack Availability.

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Secondary Data :

The Secondary data are an integral part of any research study

or a research report as it provides information on key variables,

which play a major part in the actual research. From internet,

journals, magazine, newspaper, data provided by the company.

Method of study

I have divided my all study into three phases which are

1. Rout visit2. Outlet survey3. Product survey

.

Research instrument

Questionnaire

Personal interview

Sampling design

Sampling design is a conductive approach, which gives the

research work a factual as well as conclusive framework. It

contains sample size, which is basically a true representation of the

target population

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Outlet type Outlet numbers

CONVINIENCE 96

GROCERY 61

EATERY 23

Commencement of Fieldwork:-

The fieldwork included the process of getting the questionnaires

filled up and also getting all the relevant information regarding the

visibility of Aquafina for future business decisions.

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HISTORY

PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's

principal businesses include:

Frito-Lay snacks

Pepsi-Cola beverages

Gatorade sports drinks

Tropicana juices

Quaker Foods

PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.

Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats

Company, creating the world’s fifth-largest food and beverage company, with 15 brands

– each generating more than $1 billion in annual retail sales. PepsiCo’s success is the

result of superior products, high standards of performance, distinctive competitive

strategies and the high level of integrity of our people.

PepsiCo brands are available in nearly 200 countries and territories and generate sales at

the retail level of about $85 billion.

Many of PepsiCo's brand names are more than 100-years-old, but the corporation is

relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and

Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats

Company, including Gatorade, in 2001.

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PepsiCo offers product choices to meet a broad variety of needs and preference -- from

fun-for-you items to product choices that contribute to healthier lifestyles.

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INTRODUCTION

At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute

to the quality of life in our communities. This philosophy is expressed in our

sustainability vision which states: “PepsiCo’s responsibility is to continually improve all

aspects of the world in which we operate – environment, social, economic -- creating a

better tomorrow than today.”

At Pepsi-Cola Company, consumer satisfaction is of the utmost importance. In response

to consumer interest, this page is designed to provide ingredient information frequently

requested by our consumers. We are initially providing information on caffeine as set

forth below and we expect to add information in the future about other product

ingredients such as sweeteners and colors.

PepsiCo is a world leader in convenient foods and beverages, with 2005 revenues of

more than $32 billion and more than 157,000 employees.

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PEPSICO IN INDIA

Gold Spot is considered as the first branded soft drink to be

introduced by Parle in the early forties. Coca-Cola was the first

foreign soft drink to be introduced in Indian markets. The Coca -

Cola company entered India in early fifties when four bottling

plant were set up at Bombay, Kolkata, Delhi and Kanpur. Coca-

Cola enjoyed a good beginning and dominant market. Parle exports

private limited, the major domestic player, later in 1970 introduced

Limca a lemon soft drink and Cola Peppino.

PepsiCo entered in Indian market in 1990, and then Pepsi

started its bottling plant and corporate colour blue as the

advertisement. When Pepsi entered in Indian market Parle was

holding 70% market share in total soft drinks so Pepsi concentrated

on availability of its brands and continuous attachment by its

advertisement.

In the year 1991, production of ‘Mirinda’ and ‘7’up’ started

and the production of ‘Slice’, ‘Teem’ and Coca-Cola came back

and launched its product in Agra with Parle Exports Private and

gradually took over the same company.

Pepsi entered into the cloudy Lemon category by launching

its ‘Mirinda Lemon’ in1988.

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In 1993 Pepsi had thirteen bottling plant units. In 1996 the

number went up to twenty seven .More plants are being set up.

Recently in May, 2001 production of ‘Aquafina’ was started

by Pepsi. In the same year, another flavor of Mirinda ‘Apple’ was

also launched.

Pepsi is one of the major sponsors of cricket tournaments in

India as well as other sports like football and hockey. In Mohali,

Punjab, it has set up a Cricket academy to develop young budding

cricketers.

Apart from the business Pepsi concentrated its mind in the

social problem of India. (E.g. unemployment, poverty etc.). Most

of the bottling plants of Pepsi are located in the backward areas

thereby giving huge employment opportunities in these areas.

Pepsi is a responsible company undertaking many social projects

in and around the bottling plants. These include supports to the

education centers, sponsoring inoculation camps, providing free

health checkups, sanitation drives etc.

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PEPSI DELIVERS:

Consumer preferred brands

Equipment that delivers top quality Pepsi-Cola beverages

Marketing that keeps Beverages sales growing

Service never down

VISION & MISSION

Mission

“To be the world's premier consumer products company focused on convenient foods

and beverages. We seek to produce healthy financial rewards to investors as we provide

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

communities in which we operate. And in everything we do, we strive for honesty,

fairness and integrity.”

Vision

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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PEPSI COLA BRANDS

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AQUAFINA- PRODUCT INFORMATION

Enjoy the crisp, refreshing taste of Aquafina – 100% pure, non-carbonated, purified

drinking water. The consistent purity and great taste of Aquafina are guaranteed by

means of a state-of-the-art purification process that includes reverse osmosis and carbon

filtration. Since its debut in 1995, Aquafina has won over consumers with its great taste

and purity. Aquafina is currently America's #1 selling bottled water brand in measured

retail channels.

It’s true. Water is good for you. The more you drink, the better you feel and since our

state-of-the-art HYDRO 7TM purification system removes substances most other bottled

waters leave in, you get pure water and perfect test every time.

INDIVIDUAL SIZES:

500- ml bottle

1.5- liter bottle

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HOW PURIFY?

To bring you water as pure as Aquafina, they create the state of the art Hydro-7 TM

purification system. See 7 step of Aquafina to pure water and perfect taste.

1. Perfiltration

With this first filter, that says

Goodbye to tiny-sized particles

in water.

2. Polishing Filter

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Any smaller particle that gets through,

this first round of polishing filter will

catch them.

3. High-intensity Light

At this stage, a burst of high-intensity

light imparts energy to the water stream

to protect against naturally occurring

organic substances in the water.

4. Reverse Osmosis (R.O.)

Reverse Osmosis uses pressure and a

hyperfilter to remove over 98% of

the Total Dissolved Solids (TDS)

from our water.

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5. Charcoal Filtration

Time to isolate those trace

elements that can affect the taste

of water by using a charcoal

filter.

6. Polishing Filter

Here’s where every H & O gets a

nice polish. Not with a soft cloth.

But with a polishing filter that’s

designed to make your water

crystal clear.

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Ozonation

Company’s final seals in the purity.

By passing purified oxygen

molecules are brought together as

assurance that unwanted particles are

kept away.

After they’ve done their job, they

revert back to double oxygen

molecules ensuring you enjoy pure

water and perfect taste with every

bottle of Aquafina.

Pure Satisfaction

That’s what you get when the only

thing you taste in your water is water.

Pure water, Perfect taste, Aquafina.

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WATER FACTS

What is Aquafina?

Aquafina purifies its water with the HydRO-7TM purification system.

The HydRO-7TM purification system delivers water with an average TDS of 4

ppm, which is 2.5 times lower than the FDA standard of 10 ppm.

Aquafina delivers pure water with perfect taste every time.

What’s bottled water?

Bottled water is regulated under standards set by both the Environmental

protection agency and food & drug administration.

The food & drug administration total dissolved solids TDS as a measure for

purity.

TDS is sum of all dissolved solids in water measured in parts per million (ppm)

All bottled water contains TDS.

Spring water is delivered from an underground formation from which water flows

to the earth’s surface and is treated to remove bacteria and other organic material.

FDA regulations mandate a maximum TDS of 500 ppm for spring water.

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Purified water is sourced from EPA regulated water systems that already provide

safe drinking water. FDA regulations mandate a maximum TDS of 10 ppm for

purified water.

HEALTHY HABITS

Keeps the water flowing year round, even during cold months

When it’s cold outside, your body needs extra energy to maintain the right temperature.

Drinking water can do that and help keep you warm.

Make sure your children drink enough water

Children drink water to balance their intake of other beverages- especially during

activities.

Drink plenty of water throughout the day

Make it easy. Carry a bottle of water when you commute to work or run errands.

Don’t substitute caffeinated or alcoholic beverages for water

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Have a glass of water with each caffeinated or alcoholic beverage.

Develop good water drinking habits now

Your “thirst signal” decline with age, so it’s important to develop the habit of drinking

plenty of water even if you’re not thirsty.

Don’t wait until you are thirsty to drink water

By the time you feel thirsty, you’ve probably already lost two or more cups of your total

body water.

Start and end your day with water

Your body losses water when you sleep, so drink a glass of water before going to bed and

again when you wake up

THE IMPORTANCE OF WATER

Although a person can live without food for several days, a person can live

without water for just a few days.

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At normal activity levels, you lose 2-3 cups of water a day in perspiration. But

during an hour of vigorous exercise, you sweat out approximately a quart of

water.

Water plays a vital role in regulating your body temperature at a perfect 98.6

degrees, delivering nutrients and oxygen to cells, removing waste, cushioning

joints and protecting organs and tissues.

Up to 60% of your body is water. Your brain is 75% water, blood is 82% and

lungs are nearly 90% water.

Water ranks first as the single most abundant substance in the human body.

Next to oxygen, water is your body’s most important nutrient.

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KEY ACTIVITIES INVOLVED IN NEW PRODUCT DEVELOPMENT

PROCESS AT PEPSI COMPANY

a) Idea

b) Initial screening

c) Preliminary Investigation

d) Pre development business and financial analysis

e) Product development

f) In house product tests

g) Customer product tests

h) Trail production

i) Precommercialization business analysis

j) Product start-up

k) Market launch

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NEW PRODUCT DEVELOPMENT PROCESS AT PEPSI COMPANY

This process starts with the ideation for the new product or innovation in the existing line

of products. Mostly the source of the idea comes through the ongoing marketing planning

and as well as from the ongoing corporate planning. Afterwards the idea passes through

the first gate that is called the initial screen. At this point the idea is matched with the

policies of the company that whether it is strategically fit with the company’s policies and

approach or not.

1. INITIAL SCREENING

This is the first step after the ideation. The initial screening is a basic rough picture which

is much needed before the launch of any type of new product. Every company indulges

this step as a prior to all steps. PepsiCo does the same thing at the launch of their new

deals. The Aquafina water product was already researched as well as launched in North

America. In India they just imitated the previously launched product; in this they

captured new market; initial screening was the first step toward launching Aquafina in

India; the below figure shows the first gate of whole process is initial screening.

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Initial Screen

Ideation Preliminary Investigation

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Idea Stage 1

Gate 1

2. PRELIMINARY INVESTIGATION:

This is the first stage of the whole process, this stage thus provide the preliminary market

assessment as well as technical information- at low cost & in as short time- to enable a

cursory and first pass financial analysis as input to gate 2. because of a limited efforts

and depending on the size of the project, very often stage one can be handled by a team

of just several people perhaps from marketing and from technical group. The below

described preliminary market and technical assessment in Pepsi company.

a) PRELIMINARY MARKET ASSESMENT

A preliminary market assessment is one facet of stage 1 and involves a variety of

relatively inexpensive activities; In this stage Pepsi worked for identified market size,

market potential, and the scope of the water project in the India market, as they

researched that most of the disease start from the water that people drink that is not

favorable for their life; and selected major cities of the India. The preliminary market

assessment has been done by the Pepsi mostly in other countries.

This assessment is usually the in-house assessment where we convey message to the

headquarter at North America that there is a demand of drinking water, this assessment is

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done by our local managers, we observe that this particular drinking water should be

launched for this particular group, because people need it. There is so many local

companies serving major portion of the Indiai markets, only nestle company was

providing the better purified water, that’s productivity was not able to meet the demand

for their product. So on that basis market demand for water was high and supply was low,

customers ask for nestles but not available in market they use low quality product. So, we

organize analysis which are rough and that tells us that should we launch this new

product or not.

b) PRELIMINARY TECHNICAL ASSESMENT

It involves a quick & preliminary in-house appraisal of proposed product. In this stage

every company like Pepsi think about technical assessment, what technology will be used

to produce the product to satisfy customers need. In this process they gather information

related water purification system and they reached at the decision, Aquafina purifies its

water with the HydRO-7TM purification system. This system provides the customer with

quality drinking water as much as nestle provide to their customers.

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After this the concepts and things that are developed in the first stage are passed thought

the second gate that is second screen in which the thorough screening is done, e.g. the

technology is to be considered that whether the technology is present in the company or

not for the new product. Do the developed concepts strategically fit with the

organizations production process or not? Is there any need of this new idea in the market

or not? The perceptual mapping is done by the marketing research department.

Second Screen

Preliminary Investigation Detailed Investigation

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Stage 1Stage 2

Gate 2

2. DETAILED MARKET STUDY

After this gate the second stage of the product process starts that is detailed investigation.

As shown from the name detailed investigation in this stages the commercial viability of

the new product. The financials of the new product are made on the basis of past

experiences and the future estimates. The project evaluation is being done here.

Market study fir this new launch has been done but it is not that detailed as it should be

and as we do in other but few countries, in other countries like North America, China,

Japan etc. Detailed market study was conducted at India before the launch of Aquafina.

At that time it was analyzed that Aquafina would get a success in all market of India, the

Indiai market is well judged by the Pepsi Company and here basically people want to

change themselves very soon because Pepsi is well known brand worldwide, Aquafina

bottled water ads written that it’s product of Pepsi Company so it make good impression

for consumers.

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3. PRE-DEVELOPMENT BUSINESS & FINANCIAL ANALYSIS

There is not much pre-development business practices which they do because they

acquire simple strategy that how much we have to produce, in how much time, are almost

similar to over all their product, process of production is much similar to their other

beverages products so they didn’t faced any problems regarding machinery. Financial

work is completed and there was little risk involved in launching water product

(Aquafina). We have done several analyses at pre-development stage which we cannot

disclose to all.

Decision on Business Case

Detailed Investigation Development

(Build Business case)

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Stage 2 Stage 3Gat

e 3

In the third stage gate of the process for proceed further. After that the new product

concept is entered in the phase of development, the third phase of product development

process at Pepsi Company.

4. PRODUCT DEVELOPMENT

In the third stage, the development for the new product is done, the product specifications

are made and technicalities are being set for the production. The chief engineer heads the

new product team and played the following role:

Coordinating broadly, not just in engineering but also production and sales

Coordinating the entire project from concept to market

Specification, cost target, layout and major component choices, making sure that

each bottle contained similar minerals as written on the bottle.

Communicating directly and frequently with designers, top management and

engineers.

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Post Development

Preview

Development Testing & Validating

Aquafina has been made for the internal trials and test by the company has been done.

This all done in the testing and validation process, the fourth stage, which also includes

the customer tests. The company has got the database of their customers so they test their

products by trial test in-house and with customers.

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Stage 3 Stage 4

Gate 4

5. IN-HOUSE PRODUCT TEST

The Pepsi Company follows high TQM standard as it is certified with the ISO standards,

they maintain their quality they have quality control department, Quality assurance

department, having several laboratories for quality check. Aquafina product has it’s

separate all of the above written departments, Aquafina water bottle is certified with ISO

9001 standards. So in this they control their product quality performance every time.

Quality assurance department guarantied that every drop has same test, and quality.

6. CUSTOMER PRODUCT TEST

The fourth stage, which also includes the customer tests. The company has got the

database of their customers so they test their products by trial test in-house and with

customers. This was not held at Indiai market, we as member was the company’s

customers testing our product. This type of test held in North America, and Japan. Our

customers are fully aware of our taste; we know what they expect from us and what the

needs of our customers & we are actually providing to them.

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7. TRAIL PRODUCTION

The trial production is also done in this development process, because the main focus of

the company at the end of the process is based on three things that are as follows:

a) Customer satisfaction

b) Time to market

c) Cost

In the trial production the production time is being improved. Because the time to reach

the market is important for the company. At last the project is again analyzed after the

changes implemented in the development and validation & testing stages.

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8. PRECOMMERCIALIZATION BUSINESS ANALYSIS

As far as the commercialization is concerned, all the decisions are made that how it will

work and how we’ll be operating a certain thing. Business analysis are almost done and

financial analysis are also at the last stage and about to complete, as every business took

some time to finalize its decisions.

Precommercialization

Business Analysis

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Stage 4 Stage 5

Gate 5

Testing & Validating Full Production &

Market Launch

In 5 stages the proper and full production process starts and the new products are ready to

enter in the market

9. PRODUCTION START-UP

Aquafina water bottles have fully started into production, have good capacity to satisfy

customers demand, still supply meets the market requirement, as soon as we capture

major market share we will enhance our plant.

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10. MARKET LAUNCH

For the launch the target market demographic has been studied and through various

channels the new product is launched. Now Aquafina have covered majors cities of India,

as in Karachi Aquafina is available in major stores, such as Aga’s, motas, cannes mart,

and sani’s supper store; we also other small stores, as well as institutes, restaurants,

hotels, etc. The main marketing task for this product is to make availability for customer.

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SWOT ANALYSIS

Strength:

Brands image

Financially sound

Distribution channel/coverage

Technology advancement

Quality

Price competitive

Personnel aspect

Market expertise

International component

High promotional activities

Weakness:

New to the company

Low market share

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Opportunities:

Capture the market

New areas

Market potential

Brand awareness

Increase in investment

Threats:

Higher availability of competitors

Direct competitors are about to enter in Indiai market.

Technological environment

New in market

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4 P’s OF AQUAFINA

PRODUCT

In many countries, Aquafina is preferred by the consumer who likes

quality goods.

.

Aquafina is certified with ISO 9001 standards.

Aquafina come with the new opportunity for the company to come

into market.

Aquafina serves consumer worldwide.

PRICE

As in India price allocated for the bottled product is very competitive as

nestle bottle water 500 ml Rs: 15 as Aquafina 500ml price Rs: 10 only, for

1.5 liters nestle priced Rs: 25, Aquafina 1.5 liters bottle Rs:20 only. But

in the international market may be higher then the Indiai market.

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PLACE

As Pepsi is a multinational company, Aquafina is one of the good selling brand, has a

proper coverage internationally and as well as domestically.

Aquafina has captured international market as well the following countries where you

will find Aquafina:

Australia

Brazil

Canada

China

Finland

France

Japan

Malaysia

India

Singapore

USA

PROMOTION

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In India Aquafina is advertised only thought the printed media, it

includes, signboards, newspapers ads, magazine ads, and so on. As the

printed media is the easy and less costly step toward publicity of the

product. So Aquafina is new in the market does not want to spent more on

the TV ads, as internationally they have ads on internationally TV

Channels. The standard of advertising they are maintaining through out

the world.

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PROMOTIONAL ACTIVITIES

Sales promotion a key ingredient in marketing campaigns consists

of a collection of incentive tools, mostly short term, designed to

stimulate quicker or greater purchase of particular products or

services by customers.

Promotional activities play a key role in the entire marketing effort

being carried out by company. These promotional activities

generate more sales as well as create a good image of the product

in the mind of the customer.

The promotional tools used by company for its marketing activities

are

Point of sale display Incentives to retailers Sales promotion through sponsoring special events Sales promotion through various schemes

Advertising

Sales Promotion

Direct Marketing

PersonalSelling

Public Relation

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Advertising

POINT OF SALE DISPLAY

“There are many ways to communicate with consumers at the point

of sale. In-store advertising includes shopping carts, cart straps,

aisles and shelves. The appeal of the point of sale advertising lies

in the fact that in many categories consumers make the bulk of

their final decision regarding purchase in the shop.”

Marketing management Kotler, Killer, Koushik and Jha

This is particularly true for those brands, which have very low

customer loyalty. Soft drink is one such product in which most of

the time buying decision is made at the spur of the moment based

on the brand, which is readily available and catches the eye of the

customer. For this reason company invest heavily in this category

by supplying the shop owners with stands so that they can keep the

bottles outside on those stands so that customers have an eye

contact with them as he/she is entering the shop. Also Pepsi

supplies the shop with visi coolers with a glass front so that cooled

bottles can be seen by the customer when he/she is making a

decision on the flavor that the person is going to buy. Apart from

this company takes keen interest in other type of strategies like

painting the walls of the shops with the Pepsi logo, putting up glow

signs and dashboards with the Pepsi logo and the shop name. This

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increases the visibility of the brand among the customer when

he/she enters the shop.

INCENTIVE TO RETAILERS

Another method of sales promotion being used by companyis by

running special incentive schemes for retailers. This type of

promotional strategy is conducted mainly during the peak season

i.e., from March to July.

ADVERTISING

“Advertising is any paid form of non-personal presentation

and promotion of ideas, goods or services by an identified

sponsor.”

Marketing management Abraham Kawshik & jha.

Advertising is also known as a process of Telling & Selling.

Drawing the attention of consumers to any product, object,

purpose or idea by using non personal media of

communication is termed as Advertising.

Through advertising the advertiser intends to spread his ideas

about his products/offerings among the customers and

prospects.

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Advertising can also defined as” the action of attracting

public attention to a Product or business," is one of many

marketing tools you can use to draw in more customers with

greater frequency.

What Advertising Can Do For Your Business

Remind customers and prospects about the benefits of

your product or service

Establish and maintain your distinct identity or

"personality"

Enhance your reputation

Encourage existing customers to buy more of what you

sell

Attract new customers and replace lost ones

Slowly build sales to boost your bottom line

1.Using Other Promotional Avenues

The theme of your advertising reflects your special identity or

personality, and the particular benefits of your product or service.

For example, cosmetics ads almost always rely on a glamorous

theme. Many food products opt for healthy, all-American-family

campaigns. Automobile advertising frequently concentrates on

how the car makes you feel about owning or driving it rather than

performance attributes.

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Five “M” of advertising:

A very important part of advertising is to decide the medium of

advertising and how much to spend on each medium.

The different mediums used by Pepsi are:

TV

Hoarding

Newspaper/Magazines

Radio

Product of sales material(painting, glow signs, D. Board)

MISSIONWhat are the advertising objectives?

MISSIONWhat are the advertising objectives?

MONEYHow much can

be spent?

MONEYHow much can

be spent?

MESSAGEWhat message should be sent?

MESSAGEWhat message should be sent?

MEDIAWhat media should be

used?

MEDIAWhat media should be

used?

MEASUREMENTHow should the

result be evaluated?

MEASUREMENTHow should the

result be evaluated?

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OBJECTIVES OF THE ADVERTISING STRATEGY:-

Informative advertising means telling the market about new

product, suggesting new uses for a product, informing the

market about the price change, explaining how the product

works etc.

Persuasive advertising means building brand preference,

encouraging customers to switch to their product, changing

customer’s perception.

Reminding consumer that the product may be needed in the

near future, reminding consumers where to buy it.

Thus advertising is a fascinating and important aspect of

marketing. Advertising appeals to all irrespective of age,

caste, sex, borders etc. Words which can be associated with

advertising are fun, humor, warm, entertaining, persuasive,

boring, and irritating. Advertising in simpler words is

communication and persuasive and leaves a mark in the mind

of the consumer. Thus it is natural to look to theories,

concepts and research findings from psychology to

understand and mange the whole process.

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MIDDLEMAN - INTERMEDIARIES.

The various kinds of middlemen are:

1 Agent

There are middlemen who don't take any title to goods but have

possession of goods and take active part in the marketing

mechanism rendering all services required. They represent

either seller or buyer and not both.

2 Broker:

Brokers are agent who have no direct and physical control of

the goods in which they deal they represent either the buyer

or seller or both in negotiating purchases and sales for their

principals. Broker's powers as to price and terms of sale are

limited by the principal.

3 Dealers:

Dealers are persons who buy or -sale products at either retail

or wholesale basis.

Distributors:

It is generally tenl1 used to mean wholesalers.

4 Jobbers:

The term is used in certain trade and localities to designate

special types of wholesalers. They are usually found in stock

markets.

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5 Rack jobbers:

A whole selling business unit that markets specialized lines

merchandise to certain types of retail stores and also provide

special services such as arrangement, maintenance and

stocking of products in display racks. The rack jobbers,

usually not always put his merchandise in the store of the

retailer on consignment. Rack jobbers are most common in

the food business.

6 Resident Buyer:

An agent or a person who specializes in buying on a fee or a

commission basis chiefly for retailers is known as resident

buyer.

7 Retailers:

A merchant or occasionally on agent whose business is selling

directly to the ultimate consumer.

8 Wholesalers:

A business unit which buys goods from the producer and resales

to a retailer and other merchants or to industrial, institutional

and commercial users but which doesn't sale significant amount

ultimate consumers.

9 Commission Houses:

These are also refereed to as Commission merchants or

agents. These agents usually exercise physical control over the

goods and negotiate the sale of goods. They handle the

commission house usually enjoys more powers over the prices,

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method and terms of sales than the brokers. They generally barrage

delivery extend necessary credit. Collect the sale price deduct there

fees (commission).

10 Oscillation Agency:

These agencies perform or assist in the performance of one

or more marketing functions, but they don't take title to goods nor

negatives purchase or sale. Common type of this kind is bank

insurance company, railways advertising agencies.

11 Consumer co-operative:

A retails business wound and operated by ultimate

consumers to purchase and distributes goods and services lamely

to the member

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SUSTAINABLE ADVANTAGE

Three major sustainable advantages give PepsiCo a competitive edge as we operate

in the global marketplace:

1.Big, muscular brands;

2.Proven ability to innovate and create differentiated products; and

3.Powerful go-to-market systems.

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Making it all work are our extraordinarily talented and dedicated people.

When we take these competitive advantages and invest in them with dollars generated

from top-line growth and cost-saving initiatives, we sustain a value cycle for our

shareholders.

In essence, investing in innovation fuels the building of our brands.

This in turn drives top-line growth.

Dollars from that top-line growth are strategically reinvested back into new products and

other innovation, along with cost-savings projects.

Thus, the cycle continues.

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MARKET SHARE OF COMPANY

Market Share of Product

Market Share of Filled stock

SL

No Product

Est. Mark.

Share

1 Pepsi 49%

2 Coca Cola 51%

pepsi

coca cola

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Market share of glow signs board:

Market Share of Glow Sign

SL

No Product Est Mark. Share

1 Pepsi 25%

2 Coca Cola 75%

Glow signs are the boards on the top of a shop with neon lights in

the back ground with works as a sign board for the shop. It is an

effective marketing strategy.

Coca cola

Pepsi

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Market share of VISI cooler:

Market Share of VISI Cooler

SL

No Company Est.Mark. Share

1 Pepsi 30%

2 Coca Cola 70%

This is one of the most important supports for the dealers which

help them to keep the product chilled and fresh.

pepsi

coca cola

62

How much of the business you do, from Pepsi?

Business from different Outlet

SL

No

Type of

Outlet

Est. Mark.

Share

1 Convenience 60%

2 Grocery 15%

3 Eatery 25%

These three kinds of market shows the total market area which is

divided on the basis of the character (type of work done by the

retailer).

Business from different Outlet Est. Mark. Share

1 Conveience

2 Grocery

3 Eatery

Interpretation

63

Convenience shop has a highest percentage of business from Pepsi

and followed by Eatery shop and Grocery shop.

How frequently do you buy PEPSI?

Frequency of buying the Pepsi

SL

No Time Period Percentage

1 Daily 20%

2 Alternative 70%

3 Weekly 10%

This is related to the frequency of Pepsi vehicle that a dealer

wants, according to the need and demand of the product in that

particular area

Frequence of buying the Pepsi Percentage

1 Daily

2 Alternative

3 Weekly

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Interpretation

Most of the dealers want a frequency of Pepsi Vehicle on the basis

of alternative days.

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CONCLUSION

In this 3 month research study I conclude the following things.

In India Pepsi Company launched water product, as water product was already available

in the market, the company saw in bottle water opportunity to come into the market by

serving people with better quality at low cost. It’s totally new to the company but it’s

already in the market.

Aquafina bottled water serves domestically as well as internationally, domestically they

serve major cities of India.

Aquafina have similar process steps that have written in the new product development

book, I have already discussed those steps in this report.

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RECOMMENDATIONS

Company should introduce their product into the other cities of India as like

as Pepsi Brand.

Company should maintain the quality of the bottle water

Government should reduce taxes on the manufacturing companies.

Company should be registered

They should introduce large bottle for family packs, such as 19 liter bottles,

12 liter bottles.

Maintain low cost as they are currently serving the markets of India.

Company should have recycled program

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BIBLIOGRAPHY

Internet:

www.pepsi.com

www.pepsiworld.com

www.pepsico.com

www.aquafina.com

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