sales & promotion of pepsi
TRANSCRIPT
A
Project Report
On
Sales and Promotion of Pepsi
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION(UTTAR PRADESH TECHNICAL UNIVERSITY)
(2013-2015)
Submitted to: Submitted by: Mr. SANDEEP SHARMA KRISHNA KUMAR SRIVASTAVA (Faculty Guide) MBA 3rd Sem. MIMT Roll no. 1315270025
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(GREATER NOIDA)
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ACKNOWLEDEMENT
A task undertaken without offering prayers to almighty and talking blessings from the
elders is not a good beginning. Likewise the work completed without acknowledging the
assistance to those who were always by my sides to make my efforts fruitful in the task
left incomplete.
In the beginning, I would like to express my sincere thanks to my Institute teachers for
giving me an opportunity to take the practical experience of working life.
I convey my sincere thanks to Mr. Sameer Wali ADC (Admin), Varun Beverage Pvt.
Ltd., Okhla, New Delhi , and Mr. Sandeep Sharma , Mangalmay Institute of
Management Technology, Gr.Noida, both of them has been providing me the proper
guidance and current information throughout this summer training project effectively
and efficiently has been completed at the time of submission.
I would also like to pay thanks to all my classmates and friends and my family members
for co-operating with me and helping me to complete the project.
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KRISHNA KUMAR SRIVASTAVA
MBA 3rd Sem. Roll no. 1315270025
(2013-2015)
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Date
STUDENT’S DECLARATION
I hereby declare that summer internship project report entitled
“Sales and Promotion of Pepsi in Delhi.”.submitted for the
partial fulfillment of the requirements for the award of Master of
Business Administration is the outcome of original study
undertaken by me and the has not formed the basis for the award
of any degree, diploma or any other similar title.
Date: KRISHNA KUMAR SRIVASTAVAPlace: Roll no.-1315270025
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TABLE OF CONTENTS
DESCRIPTION PAGE NO
1. PREFACE 5
2. INTRODUCTION
I. Objective II. Company profile 14 * PepsiCo Company Profile
III. History of the Company 17 IV. Organizational Structure 30
2. RESEARCH METHODOLOGY
I. Research Design 56II. Market Research Process 57
III. Visi Purity 63
3. FINDING AND ANALYSISI. Findings & Observation 80
II. Graphical Analysis 83 III. Swot Analysis
4. CONCLUSIONS & RECOMMENDATIONS
I. Conclusion 95II. Recommendation 98
III. Limitation 105IV. Main Key Points 107
5. BIBLIOGRAPHY
I. Bibliography 112II. Annexure 114
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III. Questionnaire 116
PREFACE
Summer training project is necessary part for fulfillment of MBA course. The
emphasis in the project is providing the study and an insight into Indian FMCG Business
Scenario.
The summer training project is designed to provide participation of BBA
program as on the job experience. This has given a chance to try and apply the academic
knowledge and gain insight into corporate culture. This helps in developing decision-
making abilities and emphasizes on active participation by the student.
I undertook my Project in Varun Beverage Pvt. Ltd. Okhla, Delhi, a leading
Bottler and Marketing partner of the Pepsi Foods. During the training, I had worked on
the project “Sales & Promotion of PEPSI in Delhi.”
I gained valuable experience & knowledge during the survey. The Project
consists of my findings after tabulation of collected data, then analyzed conclusions were
drawn and finally suggestions were put forward.
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Executive Summary
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EXECUTIVE SUMMARY
The distribution network of PEPSI is well known for its efficiency but company
constantly strives for the betterment of their distribution network system. Emphasis of
our study was to focus on the customer of company i.e., the retailers.
The Retail Mapping of DELHI is an integral step for the assessment,
development and betterment of this system. The distribution system not only comprises
the movement of the products but also incorporates the merchandising of the product,
which is very broad in its purview.
The project incorporates the analysis of the performance of PEPSI and probing
into opportunities of increasing the market share in DELHI. The entire process had to be
in an organized manner in order to deliver meaningful results for the
Purpose of decision-making. The project was that of market research with
surveys and observations as its major phases with the objective of gathering of all
important information material for strengthening the position of PEPSI in DELHI.
PEPSI boasts of having the maximum market share in the beverage segment in
DELHI and is in constant process for the betterment of its product performance and
customer as well retailer’s satisfaction.
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I ntroduction
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INTRODUCTION
The Project “Sales promotion & Market Share of PEPSI in
DELHI” Is designed on the lines of basic investment decisions to be taken by the
senior officials of PEPSI for the purpose of amendments in the pre-existing distribution
network in order to review and strengthen the routes. The findings of the project are very
crucial for the increment of the market share of PEPSI in the DELHI & Beverage
Market.
Though the process is an ongoing one but the decisions have to be taken on a
strong base, supported by facts and figures and that too on papers. This support can only
be provided with the help of an extensive and through analysis of the market and the data
collected thereof.
The Marketing Development Co-ordinator who was the lead or the project head
delivered the objectives of the project to us expressly and we had to submit the day
report to him along with the draft report. He was the in charge of the project and gave
guidelines and directions to approach the project.
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O bjective
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To analyze, interpret and study the entire beverage market of DELHI
Comparative study of the various brands, packs and flavors available in the
market.
Analysis of the strong and weak point of the competitors products and compare it
with PEPSI.
To assess the reach and feasibility of the product and give the output for further
investment for enhancing the distribution network along with assessing the
efficiency of the current distribution system.
Assess the promotional measures in the context to the sales of PEPSI and
focusing our study on the customer of company i.e., the retailers.
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As obvious that any company is concern with the increase in sales of its products,
our project was in line with the companies’ objectives and all steps incorporate in the
project were directed to give an overview so as to attain its objectives
.
The market research conducted by us was in accordance to the company’s rules
and policies which were quite material for the efficient and effective results and
inferences to be drawn from the entire process.
The market research was conducted in compliance of the given guidelines delivered
to us expressly to achieve the given objectives, which were as under:
1. Profitability
2. Improvement
3 Sales
4. To satisfy the customers
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Company Profile
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COMPANY PROFILE
In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina,
begins experimenting with many different soft drink concoctions; patrons and friends
Sample them at his drug store soda fountain.
In 1898 One of Caleb's formulations, known as "Brad's Drink," a combination of
carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on
August 28, 1898. Pepsi-Cola receives its first logo.
Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment
beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo,
Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana,
Gatorade and Quaker Foods businesses in the United States and Canada.
Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi,
Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer
account for nearly one-third of total soft drink sales in the United States.
Pepsi-Cola North America's non-carbonated beverage portfolio includes
Aquafina, which is the number one brand of bottled water in the United States, Dole
single-serve juices and SoBe, which offers a wide range of drinks with herbal
ingredients.
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The company also makes and markets North America's best-selling, ready-to-drink iced
teas and coffees via joint ventures with Lipton and Starbucks, respectively.
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
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result of superior products, high standards of performance, distinctive competitive
strategies and the high level of integrity of our people.
There are many who feel that Pepsi-Cola had the first move advantage in India.
Little do they know about Pepsi-Cola’s initial foray into Indian soft drinks industry way
back in 1956?
Coca–Cola had entered the country just a year back in 1955. But later Pepsi-Cola
withdrew from the country in 1961 due to bottling problems. Pepsi-Cola entered India in
April 1989 by setting operation in beverages, snacks & agribusiness. At this time Parle
had 70% of the market share of the total soft drink market.
Initially it faced some trouble in entering the market due to strong resistance from
most of the domestic soft drink industry and the advocates of “Swadeshi”. The Indian
economy was not liberalized and proved to be another barrier. Pepsi-Cola removed these
barriers by:
Promising the government to focus considerable selling efforts in the rural area to
help economic development.
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“Promising to help boost the expert of agricultural products”
Offering to transfer the food processing, packaging & water treatment technology
to India.
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THE HISTORY OF PEPSI-COLA
1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions; patrons and friends sample
them at his drugstore soda fountain.
1898:One of Caleb's formulations, known as "Brad's Drink," a combination of
carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on
August 28, 1898. Pepsi-Cola receives its first logo.
1902: The instant popularity of this new drink leads Bradham to devote all of his energy
to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with
the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company.
The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly
Journal
1903:"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented
warehouse; he sells 7,968 gallons of syrup in the first year of operation.
Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion."
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1904: Bradham purchases a building in New Bern known as the "Bishop Factory" for
$5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six-
ounce bottles. Sales increase to 19,848 gallons.
1905: Pepsi-Cola's first bottling franchises are established in Charlotte and Durham,
North Carolina.
Pepsi receives its new logo, its first change since 1898.
1906: Pepsi gets another logo change, the third in eight years. The modified script logo
is created with the slogan, "The Original Pure Food Drink."
There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada.
Syrup sales rise to 38,605 gallons.
The federal government passes the Pure Food and Drug Act, banning substances such as
arsenic, lead, barium, and uranium, from food and beverages. This forced many soft
drink manufacturers, including Coca-Cola, to change their formulas. Pepsi-Cola, being
free of any such impurities, claimed they already met federal requirements.
1907: Pepsi-Cola Company continues to expand; the company's bottling network grows
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to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.
Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons.
1908: Pepsi-Cola becomes one of the first companies to modernize delivery from horse
drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract
to make and sell Pepsi-Cola.
1909: Automobile race pioneer Barney Old field endorses Pepsi-Cola in newspaper ads
as "A bully drink...refreshing, invigorating, a fine bracer before a race."
1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.
1920: Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy
you."
1923: Pepsi-Cola Company is declared bankrupt and its assets are sold to a North
Carolina concern, Craven Holding Corporation, for $30,000.
Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will
from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.
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1928: After five continuous losing years, Megargel reorganizes his company as the
National Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi
trademark.
1931:U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola
Company bankrupt, the second bankruptcy in Pepsi-Cola history.
The Loft candy company acquires the National Pepsi-Cola Company. Charles G. Guth,
president of Loft, assumes leadership of Pepsi and commands the reformulation of
Pepsi-Cola syrup formula.
1933: By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of
moves, he acquires Mega gel’s interest in the company, giving himself 91% ownership
of Pepsi.
1934: A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales,
the company begins selling its 12-ounce drink for five cents (the same cost as six ounces
of competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant
success. The cost savings proves irresistible to Depression-worn Americans and sales
skyrocket nationally.
Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th,
1867-February 19th, 1934)
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1935: Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and
sets up national territorial boundaries for the Pepsi bottler franchise system.
1936: Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.
1938: Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of
the Pepsi-Cola Company. Mack, who considers advertising the keystone of the soft drink
business, turns Pepsi into a modern marketing company.
1939: The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel"
theme in newspapers.
Pepsi-Cola Company names Mack as CEO
The Board of Directors removes Guth from the Pepsi payroll after he plans
1940: Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first
advertising jingle ever broadcast nationwide on radio.
1941: The New York Stock Exchange trades Pepsi's stock for the first time.
In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.
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1943: Pepsi’s theme line becomes "Bigger Drink, Better Taste."
1948: Corporate headquarters moves from Long Island City, New York, to midtown
Manhattan.
1950: Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife,
Hollywood movie star Joan Crawford, is instrumental in promoting the company's
product line.
Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is
the fifth in Pepsi history.
1955: Herbert Barnet is named President of Pepsi-Cola.
1959: Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice
President Nixon share a Pepsi.
1960: Young adults become the target consumers and Pepsi's advertising keeps pace
with "Now it's Pepsi, for those who think young."
1963: After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall
is named CEO of Pepsi-Cola Company.
Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the
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12-ounce bottle gives way to the 16-ounce size.
1964: Diet Pepsi, America's first national diet soft drink, debuts.
Pepsi-Cola acquires Mountain Dew from the Tip Corporation.
1965: Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and
Pepsi-Cola merge, forming PepsiCo, Inc.
Military 12-ounce cans are such a success that full-scale commercial distribution begins.
Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your
innards."
1970: The Pepsi World Headquarters moves from Manhattan to NY.
1974: First Pepsi plant opens in the U.S.S.R.
Television ads introduce the new theme line, "Hello, Sunshine, and Hello Mountain
Dew."
1977: At 37, marketing genius John Sculley is named President of Pepsi-Cola.
1978: The Company experiments with new flavors. Twelve-pack cans are introduced.
1980: Pepsi becomes number one in sales in the take home market.
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1983: Mountain Dew launches the "Dew it to it" theme.
1984: Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New
Generation."
1985: After responding to years of decline, Coke loses to Pepsi in preference tests by
reformulating. However, the new formula is met with widespread consumer rejection,
forcing the re-introduction of the original formulation as "Coca-Cola Classic."
The cola war takes "one giant sip for mankind," when a Pepsi "space can" is
successfully tested aboard the space shuttle.
1986: Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway.
Pepsi-Cola acquires Mug Root Beer.
1987: Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwid
Beverages.
1988: Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.
1989: Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation
Ahead."
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1990: American Music Award and Grammy winner rap artist Young MC writes and
performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi
family by endorsing Diet Pepsi. The slogan is "You Got The Right One Baby."
1991: Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada
becomes part of the company's North American operations.
Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate
(or PET) into the marketplace. The development marks the first time recycled plastic is
used in direct contact with food in packaging.
1992: Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding
"Choice of a New Generation."
Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will distribute single serve
Lipton Original and Lipton Brisk products.
Crystal Pepsi: a refreshing, clear soda that is caffeine free, has 100% natural flavors, no
preservatives and is low in sodium, goes national.
Mountain Dew introduces the popular theme line, "Get Vertical."
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1993: Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi".
Pepsi-Cola profits surpass $1 billion.
1994: New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi
CEO Craig Weatherup explaining the relationship between freshness and superior taste
to consumers.
Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo
Foods and Beverages Company.
1995: In a new campaign, the company declares "Nothing else is a Pepsi" and takes top
honors in the year's national advertising championship.
1996: In February of this year, Pepsi makes history once again, by launching one of the
most ambitious entertainment sites on the World Wide Web. Pepsi World eventually
surpasses all expectations, and becomes one of the most landed and copied, sites in this
new media, firmly establishing Pepsi's presence on the Internet.
1997: In the early part of the year, Pepsi pushes into a new era with the unveiling of the
Generation Next campaign. Generation Next is about everything that is young and fresh;
a celebration of the creative spirit. It is about
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1998: Pepsi celebrates its 100th anniversary.
PepsiCo. Chairman and CEO Roger A. Enrico donate his salary to provide scholarships
for children of PepsiCo employees.
Pepsi introduces Pepsi One - the first one calorie drink without that diet taste!
2000: Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills
and hard work elsewhere (for more money of course!), therefore putting an end to his
Pepsi page!
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O rganizational S tructure
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Chairman
President
Unit Manager
TDM
ADC
Customer Executive Customer Executive
Distributers A,B,C
Route Agents
Distributers E,F
Route Agents
Helper Helper
Product Profile
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PRODUCT POSITIONING OF PEPSI CO.
Pepsi prefers to position itself as the beverage choice of the “New
Generation”, “Generation Next”, or just as the “Pepsi Generation”.
These terms adopted in Pepsi’s advertising campaigns are referring to the
markets that marketers refer to as Generation X. The Generation X consumer is profiled
to be between the ages of 18 to 29. They have high expectations in life and are very
mobile and active. They adopt a lifestyle of living for today and not worrying about
long-term goals. Though Pepsi’s main emphasis is on this segment but they also have a
focus on the 12 to 18 year old market.
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The rich deep blue coloring represents eternal youthfulness and openness.
Marketing plans like “Yeh Dil Maange More”, “Got Another Pepsi”, “Ye
Pyass Hai Badi” have made Pepsi one of the coolest brands recognized among teens
in the top five and the only beverage product in this category.
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PEPSI-COLA LOGOS
The Pepsi-Cola logo has changed many times over the years. Here's a
chronological history of the various logos.
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Slogans and Logos
1898 Brad's Drink
1903Exhilarating, Invigorating, Aids
Digestion
1906 Original Pure Food Drink
1908 Delicious and Healthful
1915 For All Thirsts - Pepsi:Cola
1919 Pepsi:Cola - It makes you Scintillate
1920Drink Pepsi:Cola - It Will Satisfy
You
1928 Peps You Up!
1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink
1934Double Size
Refreshing and Healthful
1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel
1943 Bigger Drink, Better Taste
1947 It's a Great American Custom
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1949 Why Take Less When Pepsi's Best?
1950 More Bounce to the Ounce
1954The Light Refreshment
Refreshing Without Filling
1958 Be Sociable, Have a Pepsi
1961Now It's Pepsi for Those Who
Think Young
1963Come Alive! You're in the Pepsi
Generation
1967Taste that Beats the Others Cold,
Pepsi Pours It On.
1969You've Got a Lot to Live, Pepsi's
Got a Lot to Give
1973 Join the Pepsi People Feelin' Free
1976 Have a Pepsi Day!
1979Catch That Pepsi Spirit
Take the Pepsi Challenge
1981 Pepsi's Got Your Taste for Life
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1983 Pepsi Now!
1984 The Choice of a New Generation
1987 America's Choice
1989 A Generation Ahead
1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
1997 Generation Next
1998 Same Great Taste
1999 The Joy of Cola
2000 The Joy of Pepsi
2003
2004
a2005
2006
Pepsi. It's the Cola
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STRENGTH & WEAKNESSES
OF PEPSI CO.
Pepsi Cola throughout its 100 years of existence has developed much strength.
One of the strengths that have developed Pepsi into such a large corporation is a strong
franchise system. The strong franchise system was the backbone of success along with a
great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring
Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of
1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder advertising
and promotions. This large budget also allows Pepsi to introduce new products and very
quickly make the consumer become aware of their new products.
Pepsi-Cola provides advertising, marketing, sales and promotional support to
Pepsi-Cola bottlers and food service customers. This includes some of the world's best-
loved and most-recognized advertising. New advertising and exciting promotions keep
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Pepsi-Cola brands young. The company manufactures and sells soft drink
concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage
products.
Pepsi also has had the good fortune of making very wise investments. Some of
the best investments have been in their acquiring several large fast food restaurants.
They have also made wise investments in snack food companies like Frito Lay, which
at present time is the largest snacks company in the world.
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Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has four
soft drinks in the top ten beverages in the world. These brands are Pepsi, Mountain
Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the No.1 tea in the
United States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana,
Starbucks, Aquafina and a license agreement with Ocean Spray Juices.
Pepsi Cola like any company has weaknesses. Ironically, the one strength that
has been credited for most of its success in the past has now become a weakness for
Pepsi. This former strength is the franchise system. The franchise system in Pepsi
Corporate view has become a liability. Pepsi in today’s market must be able to act as one
instead of several separate units.
The franchise system has become a hurdle to Pepsi because many of these
franchises have become very strong and will not be dictated by PepsiCo on how to
handle their operations. Some of these franchises are unwilling to support certain Pepsi
products and at times produce their own private label products that are in direct
competition with Pepsi products.
Secondly the franchisees are not willing to make capital expenditures to keep up
with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola
at present time does not operate a franchise bottling system).
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As mentioned earlier Pepsi has tried to elevate this problem by spinning off their
interest in fast food restaurants but at present time are still guilty by association to many
of the large fountain accounts. The franchise system has also affected fountain sales due
to the fact franchisees are not willing to buy expensive fountain equipment to place in
accounts mainly because the profit margin is so low and could take years to recoup their
investment. Pepsi also has a weakness in the international beverage market.
Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena. Pepsi
has tried to enter this market by trying to do in three years what took Coke 50 years to
do. This area will take years for Pepsi to mature simply due to Coke’s dominance in the
international market and the strong ties that Coke has developed with these markets and
their governments.
Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi
customers buy their products because of taste, price, packaging and promotional factors
and of a wide variety of brands. Pepsi customers also buy their products due to the high
accessibility of Pepsi brands.
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Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi
buys large shelf area and display areas so the customer can find them easier, viz,
Convenience stores, Restaurants, Movie theaters and almost and other conceivable spots.
Pepsi has a competitive advantage over Coke because of the image it portrays.
Pepsi promotes itself as the choice of the “New Generation”. Pepsi gets this advantage
by implementing such large marketing projects like “Project Globe”. This marketing
plan, which Pepsi spent 637 million dollars over five years, is to introduce the new rich
deep blue coloring of its packaging. The rich deep blue coloring represents eternal
youthfulness and openness. Marketing plans like this made Pepsi one of the coolest
brands recognized among teens in the top five and the only beverage product in this
category.
Another competitive advantage that Pepsi has is in their product Mountain Dew.
Mountain Dew has grown a staggering 74.1% over the last five years. Mountain Dew
has a 6.3% market share and has recently become the No.4 soft drink in America. At this
current pace Mountain Dew will be come the first non-cola to reach the 1billion gallon
mark in one year.
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Pepsi also has an advantage as an innovator in their field. They are the first soft
drink makers to introduce a new one-calorie soda called Pepsi-One with, just approved
by the FDA, Ace-K.
This new sweetener is slated to be a break through for diet soda in which it limits
the after taste associated with diet soda and brings a more cola taste to the product. Pepsi
has always been a strong No.2 against Coke and have become one of the world’s largest
Companies. As far as market share is concerned Pepsi stands strong.
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PEPSI-THE INDIAN EXPERIENCE
• Pepsi is one of the most well known brands in the world today available in over
160 countries. The company has an extremely positive outlook for India. "Outside
North America two of our largest and fastest growing businesses are in India and
China, which include more than a third of the world’s population." (PepsiCo’s
annual report, 1999)
• This reflects that India holds a central position in Pepsi’s corporate strategy.
India is a key market for PepsiCo, and at the same time the company has added value to
Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in
three focus areas – Soft drink concentrate, Snack foods and Vegetable and Food
processing.
• Faced with the existing policy framework at the time, the company entered the
Indian market through a joint venture with Voltas and Punjab Agro Industries. With the
introduction of the liberalization policies since 1991, Pepsi took complete control of its
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operations. The government has approved more than US$ 400 million worth of
investments of which over US$ 330 million have already flown in.
• One of PepsiCo’s key strategies was to develop a completely local management
team. Pepsi has 19 company owned factories while their Indian bottling partners own 21.
The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official
about it’ immediately ring a bell- it’s got to be Pepsi.
The advertisement tag ‘yehi hai right choice baby’ was the first
‘Hinglish’ slogan ever used in the in the Indian market. This slogan proved to be the
best suited one for Pepsi and it was a mega hit and at that moment of time.
Pepsi in a short span of its operations in India has found a place in the hearts and
minds of the Indian consumers. The success has primarily been due to the innovative and
passionate Indian team, which has been built over the years. Pepsi is a trendsetter
managed and run by Indians, where important decisions are taken locally.
Pepsi started its operations in India in 1989 and since then PepsiCo has set up a
fully integrated operation in India viz. Manufacturing, Research & Development,
Marketing, Distribution and Franchising- covering fruit/vegetable processing, Exports,
Snack Foods & Beverages. In the mean time Pizza Hut and Frito Lay’s are the examples
in this regard only.
48
Pepsi has 40 bottling plants in India, out of which 16 are company owned and 24 are
owned by Indian franchisees. One of the major players in franchisee is RKJ Group.
The RKJ group is India's leading supplier of retailer brand Carbonated and Non-
Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its
experience in the beverage industry dates back to the sixties when it had the first
franchise at Agra.
It has the license to supply beverages in the territories of Western U.P., part of
M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of
Karnataka and whole of Nepal. The group has in total 18 bottling plants in India &
Nepal and is responsible for producing and marketing 44% of Pepsi requirement in
India.
This group has brought name and fame to the Pepsi as in all this regions Pepsi is
at the commanding position and in the mean this group has diversified itself into ice
cream, suiting and shirting’s, restaurants, beer plant in Mauritius & edible oil plant in
Sri Lanka
49
PEPSI-COLA IN INDIAN SCENARIO
Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has under
gone a radical change. When Pepsi-Cola entered, Parle was the leader with the
Thumps-up being its flagship brand. Other products offering by Parle included
Limca & Gold spot, another upcoming player in the market was, the erstwhile
bottler of Coca-Cola, “pure drinks”. Its offering includes Campa- Cola,
Campa-Lemon & Campa-Orange.
With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in
for more aggressive marketing to sustain its market share. The chronology of the
initial phase of the Cola wars in India was:
• 1977: Parle launched Thums-up and pure drinks launched Coca-Cola.
• 1998: In September, final approval for the Pepsi Foods Ltd. Project granted by
the “Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt.”
• 1990: In March, “Pepsi-Cola and 7-up” launched markets in north India.
50
• 1990: In May, The government cleared the Pepsi-Cola project again but with a
change in brand name to “Lehar Pepsi”, simultaneously it rejects the Coca-Cola
application “Citra” from the Parle, stable hited the market.
• 1991: Pepsi-Cola extended its soft drinks business and reached at national scale.
Pepsi-Cola launched its product in Delhi and Bombay.
• 1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and
Parle start initial negotiation for a strategic alliance but took break off after a
while.
• 1993: Pepsi-Cola launched “Slice and Teem” captured about 25-30% of the soft
drink market in about 2 years.
• 1994: Pepsi bought “Dukes & Sones”.
• 1995: Pepsi-Cola lunched cans, having capacity of 330ml in various flavors
1996: Pepsi-Cola domestic and international operations combined into a
Pepsi-Cola Company. International and domestic operations combined into one
business unit called “Frito-lay Company”.
51
• 1997: Pepsi-Cola brought “Mirinda Orange” opposite to “Fanta”.
• 1998: Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”.
• 1999: Pepsi-Cola launched “Diet Pepsi” in can and 1.5 Lit. “PET” bottle for
health conscious people.
• 2001: Pepsi-Cola launched Slice in “Tetra” Pack.
• 2003: Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season.
• 2005: Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of
movie Batman.
• 2005: Pepsi-Cola launched 7-up as “7-up ice”.
Pepsi-Cola launched “Mountain Dew” to be more competitive with Coca-Cola
52
PEPSI-COLA PHRASES
The Pepsi-Cola marketing phrase has also changed many times
1909-1939: Delicious and Healthful
1939-1950: Twice As Much For A Nickel Too
1950-1963: The Light Refreshment
1953-1961: Be Sociable
1961-1963: Now It's Pepsi For Those Who Think Young
1963-1967: Come Alive! You're In The Pepsi Generation
1967-1969: Taste That Beats The Others Cold
1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give
1973-1975: Join The Pepsi People Feeling' Free
1975-1978: Have A Pepsi Day
1978-1981: Catch That Pepsi Spirit
1981-1982: Pepsi's Got Your Taste For Life!
1983-1983: Pepsi Now!
1984-1990:
1990- 1994:
1995- 2004
2004- now
Pepsi, The Choice Of A New Generation
Pepsi nothing official about it
Yeh dil mange more (Pepsi India)
My Pepsi my world
53
.
PEPSI – BRANDS AND PACK
PROFILE
54
BRAND PACKS:
The products are generally available in three kinds of
packaging:
55
• GLASS BOTTLES
• DISPOSABLE CANS
56
• PET JARS
FLAVOUR PACKS:
57
COLA (Carbonated Soft Drink):
• PEPSI
• MIRANDA ORANGE
58
ORANGE:
.
MOUNTAIN DEW
• 7UP
59
60
MANGO:
• SLICE MANGO
MINERAL WATER:
• AQUAFINA
61
THE RKJ GROUP
It can be said with absolute certainty that the RKJ Group has carved out a special niche for
itself. Their services touch different aspects of commercial and civilian domains like those
of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on
today can lay claim to expertise and leadership in the fields of education, food and
beverages.
The business of the company was started in 1991 with a tie-up with Pepsi Foods
Limited to manufacture and market Pepsi brand of beverages in geographically pre-
defined territories in which brand and technical support was provided by the Principals
viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only.
62
The group also became the first franchisee for Yum Restaurants International
[formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise
rights for Northern & Eastern India. It has total 27 Pizza Hut Restaurants under its
company.
The group added another feather to its cap when the prestigious PepsiCo
“International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year
1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii,
USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in
the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico,
Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of
Pepsi Cola Company.
63
Credentials64
MAJOR CREDENTIALS
PEPSICO HOLDINGS PVT. LTD. RECEIVED “GOLD STANDARD
AWARD” FOR PRODUCTION & QUALITY CONTROL FOR THE
YEAR 1996-1997.
JAIPURIA GROUP WAS ADJUDGED “BEST BOTTLER” OUT OF
MORE THAN 2000 BOTTLERS ALL OVER THE WORLD FOR THE
YEAR 1996-97.
65
LOCATIONS OF BOTTLING PLANTS OF
PEPSI IN INDIA
53
54
Research Methodology
55
RESEARCH METHODOLOGY
OBJECTIVE OF RESEAECH:-
The Main objective of research in this project was to get the detailed analysis
of the market position and sales promotion of the Tropicana juice.
RESEARCH PROBLEM:-
To what extent does the penetration level of the PepsiCo product's and the
other merchandising objects like cooling equipments, Ice Boxes, Glow signs,
Dealer boards, Paintings and Racks leads the penetration of such things from,
Coca-Cola during the summer period in the period in the year 2008 in Delhi
and Its rural area and urban area, distributed via direct and indirect routes.
What were the factors responsible for this level of penetration?
TYPE OF STUDY:-
Primary study.
56
RESEARCH DESIGN
The Design Of our research is statistical as it concerns the items are to be
observed and how the information and data gathered are to be analyzed.
SAMPLE DSSIGN:-
For the project we used non-probabilistic sampling that can also be termed as
we only targeted the shops which sells waters.
METHODS OF DATA COLLECTION
The data collected for the project was primary data. The data was collected
through personals interviews, which was in the form of direct personal
investigation. The interview was very structured because we only ask the
question as per the EDS format.
Types of data
1. Primary data
57
2. Secondary data
THE MARKET RESEARCH PROCESS
The entire project was divided into five phases and each phase had its individual
significance and supplemented each other. The process had to be started from the grass
root level and it was very important to understand the market for this FMCG product,
which is very fast in production, distribution and consumption.
The five phases into which the project was divided were :
A. Route Riding
B. Retail Tracking
C. Corporate Tracking
D. Analysis of finding and observations
E. Segregating DELHI for WAP and SAP
58
The entire process was more of a Descriptive Research type and incorporated a
formal study of the specific problems faced by most FMCG companies an exploring the
opportunities in the untapped market. The survey was conducted on the basis of PEPSI
product preference and evaluation of sales forecast in the new and underdeveloped
market including the evaluation of the advertising and promotional measures. The data
collected had to be systematically arranged, analyzed and reported in a form congenial to
take on the spot decisions.
The observation approach was adopted in the process by gathering the data
essential and material for the decision-making and with clear objective of increasing the
market share of PEPSI in the DELHI market. Customer preferences and satisfaction
was also important in assessing the market share but that was very clear that customers
generally do not have loyalty towards the product in the Beverage industry rather what
matters the most is the product availability which will be discussed later.
All the phases mentioned above have been discussed along with the observations,
problems, and other dimensions which have been encountered and experience in detail in
the following pages.
59
A. ROUTE RIDING :
The Beverage Industry or to be more specific, the Soft Drinks Industry has one of
the most active network in term of its production, supply, distribution, marketing,
consumption and also personal relations at the very second level of its distribution
network. That is the reason why it is sometimes said to be “Very Fast Moving
Consumer Goods”.
Due to the above stated reason it becomes very essential to study and analyze the
market of these products from the grass root level. So in the Soft Drinks Company as
PEPSI, route riding becomes the first and foremost step in any of the activities to be
undertaken be it any official so we were no exceptions.
During the very initial days we were required to exercise Route Riding, the
objective of which was:
• To understand and analyze the market in its raw and basic form.
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• To gain an in depth knowledge of the merchandising and processing activities of
the Route Agents and understand the Beverage market.
• To undertake the comparative study of the various brands and flavor packs of all
existing beverages or soft drinks
market and the market share and growth potential of each brand individually.
• To develop innovative ideas to enhance the distribution system.
Route Riding is basically accompanying Pepsi Vans along with the route agents
and understanding the way they conduct merchandising activities right from the charged
vans leave the depot to the entry of empty vans back to the depot. The Route Riding
phase was for the initial twenty days in which we had covered twenty different routes.
61
The Route Riding is a crucial phase because the actual dealing with the retailers
and their dealing with the customers can be very efficiently understood through this
process which is important at all levels of decision making in the industry.
The Routes i.e., the Pepsi Vans were charged and left the depot by 7:30 in the
morning, accompanied by the Route Agent (Ra’s). The RA’s were given the route
planners and the particulars of the products, flavors, and quantities along with the billing
materials. The vans had to cover the entire route and the RA had to do the merchandising
and sales against cash, which was a significant feature of this industry. The targets were
given twice or thrice in a week that was a challenge for them and after achieving these
targets the RA’s was awarded with some special incentives. As there exists a player like
Coca Cola. So it had a lot to do with schemes, discounts and other incentives.
62
VISI PURITY
63
The routes were allocated on the basis of individual areas and the demand of the
product in that particular area. The RA’s been responsible for the accomplishment of
their sales target on their routes and was given incentives on achieving the targets. Not
only this, the RA’s also had the responsibility of moving the flavors and packs in
proportion along with the proper display of the products for proper visibility and
arrangement of products in brand order along with “VISI purity”.
The RA’s had the responsibility of setting up Monopoly PEPSI Sales Counters
where no products except that of PEPSI would be available amongst the soft drinks and
especially of Coca Cola. These monopoly sales counters enjoyed special benefits in
terms of discounts, schemes, VISI’s (fridges), display boards, glow signboards, wall
paintings, banners, posters and other incentives
The RA’s had to achieve their sales target and surrender the daily sales proceeds
with the concerned Customer Executives along with the route planner and billing
materials and gate pass along with the details of sales on their route.
64
The entire activities of the RA’s was controlled by the Customer Executives, who
also assisted the RA’s in achieving their targets and were in charge of the sales
performance in their assigned areas. A Customer Executive had nine to ten RA’s under
him and was responsible for their performances as well. He was also concerned with the
promotional activities on his routes and handling of policy matters in the corporate
regarding supply to industrial canteens and cafeterias
We as Research trainees were required to study and analyze the activities of the
RA’s and be familiar with the market. We had been provided Market Analysis Sheets by
the MDC in which we were required to record the observations of the retail outlets on a
particular route.
The observations, which were required to be recorded in, were:
• The quantity of the cold and warm stocks of all brands and flavors available at
the outlet along with the outlet details.
• Inquiring about the satisfaction of the retailers in terms of sales of PEPSI
products, schemes, discounts, combo offers, and the benefits of promotional
activities.
65
• Inquiring about the satisfaction by the current distribution network in context to
product availability of all flavors packs or individual flavors according to
demand of customers, rates billings.
• Inquiring about the behavior and merchandising of RA’s in accordance with the
companies’ regulations and record complaints against RA’s, company or
products, if any.
• Inquire about the performance of various brands and flavors packs and
customer’s response to those brands or flavors and also to educate the retailers
about various schemes and incentives to increase sales volume.
• Last but not the least, assessment of the effectiveness of, assessment of the
effectiveness of promotional materials and activities like, display boards, glow
signs, signage, wall paintings, posters, banners, racks, shelves, counters, VISI’s,
and also impact of nation wide advertising on brand loyalty by the customers.
The information so collected was required to be filled in the Market Analysis
Sheet (specimen on the next page) and reported to the MDC along with other
information in order of their seriousness.
66
67
RETAIL MAPPING OF DELHI :
The Retail Mapping is the integral part of the project and the most crucial is
taking significant decisions regarding the enhancement of the distribution network
involving heavy investment on account of increasing the routes and starting new routes
and promotional measures on those routes to increase its market share in DELHI. The
new routes, exploring new markets required the decision to be supported with facts and
figures which had to be provided by the Research trainees on the basis of the survey
conducted in the market and processed data there of.
The retail mapping had to be conducted on the basis of the Retail Tracking Sheet
(RTS), which had been developed by the Marketing Development Coordinator and
Customer Executives of the DELHI unit which incorporated the retail outlets, their
addresses, proprietor, respondent etc and served as a vital database for all market since
then for PEPSI in DELHI and had to be incorporated in the project in accordance to the
companies policies.
68
Objectives of Retail Mapping:
• Segregating entire DELHI for Strong Area Programme and Weak Area
Programme i.e., SAP and WAP.
• Assessment of retailer’s performance.
• Assessment of the level of promotional measures required for increasing market
share of PEPSI.
• Collection of required information for making investment decisions for the
enhancement of existing routes and opportunities for new routes in existing
market as well as exploring new market.
• Classification of all retail outlets in DELHI into five broad categories viz, On
Route, Non Existence, Non Potential, Reachable and Non Reachable under
the head, Potential Retail Outlets.
69
The duration for the completion of the Retail mapping took duration of 20 days.
The entire survey was guided and directed by the Customer Executive and Daily report
had to be presented to him after assessment and analysis along with other findings and
observations. The Data had to be classified in a systematic manner and presented in a
predefined format, which was further reviewed by the Marketing Development
Coordinator.
The Retail Mapping process incorporated of including of new outlets, which
have been omitted or newly opened, and the product availability on all these outlets. The
major thrust was on segregating the market for Strong Area Programme and Weak Area
Programme.
The Strong Area refers to the routes on which the sales targets are met without
much effort and have continuous demand for the products. These areas are performing to
the standards and are contented with the level of promotion schemes and other sales
boosting measures. The marketing efforts are nominal in these areas because of the
surplus demand and the area of concern is only to ensure the proper and efficient supply
of the products to meet the demand. In the DELHI market approximately 32% of the
market can be said to be strong areas and these areas include the well-developed markets
70
as shopping malls, movie theatres, convenes, hotels, restaurants and bars etc. For
these Strong areas, SAP only aims at maintaining the performance of the product and
enhancing the sales volume. It is not the area of serious concern for the company.
On the contrary the Weak Area refers to those areas or routes, which are critically low in
sales and the targets, are tough to achieve and require aggressive marketing support. The
demand in these areas is fluctuating or rather feeble. The routes are the area of concern
for the company as the demand is very low due to many reasons and the major one is the
existence of the player like Coca Cola in the market. Other reasons could be poor
distribution network, inadequate availability of the products on the outlet, inadequate
promotional measures and marketing support, undeveloped market as that of the
interiors etc.
These weak areas had to be identified and the cause of their inferior performance had to
be traced through the Retail Mapping and the company had to be provided with the facts
and figures to take legitimate measure on the basis of the findings of the deficient
performance of the product in these areas. This involved the aggressive marketing
strategy and heavy investment decisions to strengthen these markets. For this purpose
the classification of the outlets into five categories was very crucial along with the other
findings and observations discussed later. These five heads of classification have been
discussed as under.
ON ROUTE :
71
It refers to the retail outlets, which are covered by the Route Agents and visited
daily for sales and merchandising. The outlet is visited daily and actively
involved in the sales of all brands and flavor packs of PEPSI.
72
NON EXISTENCE:
It refers to the outlets which were merchandising the product are no more in
existence, i.e., they have diversified their business activity or have closed.
NON POTENTIAL :
It refers to those outlets, which are in existence but have very low potential in
terms of sales or are not keenly interested in merchandising the products of soft
drink.
A careful assessment had to be done in case of Non Potential outlets, as they
would turn to be potential in near future. It was also the area of operation of
project to motivate these Non Potential outlets to undertake the merchandising of
PEPSI.
73
POTENTIAL OUTLETS :
It refers to those outlets, which have the potential for the merchandising of PEPSI
and have the required investment capabilities and can be the profitable Point
Of Purchase of PEPSI by the customers. There were cases in case of these
potential outlets, which were already merchandising PEPSI, and those, which
did not, dealt with beverage products. The possibilities of setting monopoly
counter were very fair at these outlets and were given special attention. The
Potential outlets had to be further classified in two heads as below:
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o REACHABLE POTENTIAL OUTLETS :
It refers to those Potential outlet which are reachable i.e., the products can
be made available with the PEPSI vans. The reachability decision had to
be taken in context to the accessibility of the vans at these outlets.
o NON REACHABLE POTENTIAL OUTLETS :
It refers to those Potential outlets which are not accessible by the PEPSI
vans. These outlets had to be considered because the sales volume can be
increased at these outlets and so alternative method of distribution and
promotional activities have to be evaluated and worked upon.
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C. CORPORATE MAPPING :
DELHI being an entirely industrial city had huge potential for the sales of PEPSI
in corporate as these concerns had factories, offices and canteens and the officials and
workers base was very strong. The process of Retail Mapping was followed by the
Corporate Mapping, which incorporated of tracing of the organizations and assessing the
market for PEPSI in these areas. Apart from these the database had to be updated to turn
the non-potential market in the corporate into profitable liaisons for the increment of
sales volume.
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THE OBJECTIVES OF CORPORATE MAPPING WERE:
Trace the organizations with and without canteens and cafeterias and estimate
the market for PEPSI.
Estimate the brand preference of PEPSI and COKE in the corporate and the
reasons thereof.
To review the product performance and satisfaction along with the
expectations of the customers in corporate including PEPSI Dispenser
Equipments.
To assess the product availability and demand of the product (Traffic) in
these organizations as well as when the product has the optimum
consumption e.g. daily, delegations, meetings, parties, or other occasions and
the customers i.e., whether the officials or workers or both.
To ensure efficient supply and record any complaints or grievances thereof.
To assess the promotional measures being adopted by Coca Cola for tapping
these markets and locate the weak points in corporate having Coca Cola
counters to convert them into profitable opportunities.
77
The Corporate Mapping was the supplementary programmed in the project to
boost the sales performance of PEPSI in DELHI and capture the market share of its
nearest competitor. The analysis and findings were recorded on the format provide by
the company accompanied by the list of findings and observations in order or their
preference and seriousness along with all the relevant details about the organization. The
matters were discussed and analyzed carefully by the MDC.
The corporate matters had to be given a special care as these had huge potential
for the product. The specimen copy of the Corporate Mapping format is attached for
reference. The findings and observations have been discussed in the coming pages.
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D. ANALYSIS OF FINDINGS AND
OBSERVATIONS:
The main objective of the company is to increase the brand preference and
market share so any information material form this point of view had to be take into
account along with the formats provided by the company for predefined information
recording and analysis of those recordings and present the information in an organize
and systematic manner in a condensed form reflecting the actual position of the market.
The information had to be recorded in the format along with the relevant
information as per the objectives of the research and an analysis of that information had
to be made and present them in an understandable format so that immediate inferences
can be drawn. Generally those information had to be presented in percentages and the
other findings and observations had to be evaluated and a list of findings had to be
arranged in order of their seriousness and areas of serious concern along with the outlet
details.
After the analysis sheets and formats have been surrendered to the C.E’s after
analysis by the trainees it was further analyzed and evaluate by him and a brief analysis
79
was made each day of the daily report. The CE’s further forwarded these reports after
retaining the reference copy, to MDC for further review and reference.
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SEGREGATION OF LUCKNOW :
As discussed earlier that the major objective of the Retail Mapping of DELHI
was to segregate the market for PEPSI for the Strong Area Programme and the Weak
Area Programme. These Programmers have been discussed under the Retail Mapping
Head. The Data and fact collected by the survey had to be analyzed and presented in a
systematic form in order to draw meaningful inferences.
The finding of the Route Riding and the Survey conducted during the Retail
Mapping and the Corporate Mapping were combined together and analyzed together to
reach a final report ie, the RETAIL MAPPING SUMMARY or THE CONDENSED
DRAFT REPORT, which gave the entire picture of the actual position if PEPSI in
DELHI. The report so prepared was on the basis of the Retail Tracking Sheet and the
other supplementary finding and observations were considered to reach a consensus of
declaring the route as a weak area or a strong area.
The reports were analyzed thoroughly by the Customer Executives and a meeting
was held for the assessment of the routes and the reasons of unfavorable performance in
the weak areas and how to improve the sales on those routes. The discussion comprised
81
of the further investments for the enhancement and extension of the routes and the level
of promotional measures required in these areas. The performance of Coca Cola was also
reviewed simultaneously and a comparative study was made to assess the performance
and growth in the industry. These data and figures were compared with that of the last
year and a growth percentage was reached which also served as a basis of declaring an
area as a Weak Area.
As already mentioned PEPSI is a VFMCG so the marketing strategies are going
to be very dynamic in nature. The Customer Executives had to formulae day to day
strategies and these were communicated to RA’s in the morning when they were going
to leave the depot and this interaction among R.A.and C.E. was to be known as Gate
Meeting.
The programmers were to be based on the seriousness of the problems and
accordingly a mild or aggressive marketing, promotional and investment programmed
was to be formulated.
82
Findings &
Observation
83
FINDINGS & OBSERVATION
The reports of each phase of the project had to be supplemented by the
information, data, facts and figures and significant findings and observation to
support the feasibility of decisions to be taken on the basis of the Retail
mapping Summary or the CDR. The information so recorded in each phases
of the project had to be listed in order of their relevance and seriousness and
presented in a form to facilitate immediate inference.
Some of the important observations have been listed below:
Soft drink business’s behavior is not governed by brand loyalty so the
availability of the right brand, at the right place, at the right time is the key for
winning consumer in soft drink business.
The most important and satisfying observation was that, PEPSI had
approximately 64% market share in the soft drinks market in DELHI and some
of its brands like Mirinda Orange and Mountain Dew were performing above
standards apart from PEPSI Cola in spite of the Coca Cola with two cola flavor
packs i.e., Coke and Thumps up.
84
The present distribution system of PEPSI is the best in the entire FMCG industry
in DELHI and the major strength
of PEPSI. The enhancement in the distribution network would definitely increase
the market share of PEPSI.
The retailers played a very critical role in the increment in the sales volume of
the product and the had to be kept satisfied in order to increase the market share
by offering better schemes, discounts, display materials such as VISI’s, racks,
counter, signage, wall paintings and better amount for purchase of shelf space for
display.
The existence of sub-dealers and super stockiest are also the major area of
problem, as they do not move the schemes and other display materials and
incentives information to the retailers, which is one of the reasons for the
dissatisfaction of retailers.
85
The cut throat competition between PEPSI and COKE had lead to the never
ending cola war and price war which has brought down the profit margins which
is one of the major grievances apart from the common complains pertaining to
schemes, incentives and display materials.
The other major issue was the supply of PEPSI from the bottling plants in Delhi
and Punjab against the company policies. These plants supplied the products at
discounted rates and violated merchandising principles of PEPSI.
Another critical issue was the presence of duplicate products of PEPSI in the
market. The details of these outlets have been surrendered to the company for
action against these outlets.
The position of PEPSI in the corporate was not up to the mark and Coca Cola
had a better scene in this context. One of the reasons can be assigned to the
product positioning of PEPSI and Coca Cola.
86
87
Analysis
88
MARKET STATUS OF PEPSI PRODUCT
PEPSI-COLA PRODUCTS
Lehar 7-Up9%
Aquafina7%
Slice20%
Mountain Dew19%
Mirinda Orange
14%
Mirinda Lemon
3%
Lehar Soda
4%
Pepsi24%
89
PREFERENCE OF SOFT DRINKS IN QUANTITY
300 ML25%
600 ML12%
330 ML (CAN)
2%
2 LT.24%
200 ML37%
90
RATIO OF CONSUMPTION OF SOFT DRINKS PER 100 CONSUMERS
Often67%
Twice in a week12%
Never1%
Once in a week3%
Occasionaly
4%
Daily13%
91
The other Statistics and finding have been presented in the form of
various charts on the coming pages:
DEMAND OF SOFT DRINK
92
CONSUMTION OF PEPSI BRAND
PEPSI, 40
M.DEW, 15MIRINDA, 15
SLICE, 15
7UP, 10OTHERS, 5
PEPSI
M.DEW
MIRINDA
SLICE
7UP
OTHERS
93
RATIO OF PEPSI AND
COKE IN DELHI
PEPSI, 45
COCK, 44
OTHERS, 11 PEPSI
COCK
OTHERS
94
Which brand purchase is the most?
.
PEPSI Vs COKE
57%
43 PEPSI COKE
95
S wot A nalysis
96
SWOT ANALYSIS
STRENGTH:
1) Good market penetration.
2) Motivated channel partner.
3) Well defined routes.
WEAKNESS:
1) All brands were not available in at least 80% shops.
2) Complaint handling was not up to mark.
3) Supply in certain area is very irregular and also route agents are not covering full
routes.
4) Poor signage and display is making the routes week for the sale of Pepsi.
5) Interpersonal relationship with the company officials and the route agent is not
satisfactory.
OPPORTUNITY:
1) It is observed that in some newly establishing areas many new outlets are
opening , Pepsi needs to concentrate on these new outlets and can gradually
increase its sale in these area.
97
2) Large number of mix outlets can be changed to Pepsi exclusive and coke
exclusive to mix only by luring them good and efficient supply, glow sign and
cooling equipments.
THREATES:
1) Coke is the only nearest competitor and it is catching up in the market
penetration through price skimming and other promotional scheme.
2) Some local brands commonly known as kancha , Tip Top , Shine and the
launch of Catch soft drink a product of DS group are causing decrease in sale
in some areas.
98
Conclusion
99
CONCLUSION
The business of Soft Drink industry is significantly based upon the impulse
buying, so it is very necessary to Merchandise products of PEPSI efficiently and present
them in such a manner so that it can motivate the consumer and generate a thirst in
consumer to consummate it.
Though, PEPSI has a strong position in DELHI with the support of its efficient
distribution network, aggressive marketing efforts and advertisements along with
attractive schemes but there still exists potential market in Delhi to be exploited and a
suitable Weak Area Programme or the Strong Area Programme has to be formulated to
improve its market share depending upon the area under consideration.
Soft drink business’s behavior is not governed by brand loyalty so the emphasis
is not only on creating the market but also on retaining it. The availability of the right
brand and flavor pack, at the right place, at the right time is a key for winning the
customer in soft drink business. Keeping these facts in mind it becomes very important
to treat the retailers with concern and satisfy them by various measures and so that they
are loyal towards PEPSI. Public relation is also critically important in this industry.
100
CONCLUSION & RECOMMENDATION
101
Recommendations
102
RECOMMENDATIONS
The Project Retail Mapping was concerned only with providing the organization
with all the necessary information required to strengthen the position of PEPSI in Delhi
in the form of reports incorporating all information in an analyzed and summarized
form. But some critical and major issues, which have been identified on account of
extensive analysis, required suggestions to be put forward on the basis of the current
market scenario.
There should be uniformity in, schemes, and discounts, which are offered to the
retailers and should be based on a specific parameter such as sales volume, to
avoid dissatisfaction and biasness among the retailers.
Activities of sub dealers and super stockiest should be controlled and checked in
order to ensure fair prices and distribution of schemes and incentives to small
retailers to avoid discontent among smallholdings and outlets.
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Every possible step should be taken for the satisfaction of the retailers, as they
are the most important supplement to the sales promotion measures and
nationwide advertising campaigns of the company in context of boosting the
sales and enhancement of the brand image of PEPSI.
The operations of the bottling plants of the surrounding territories should be
controlled in order to ensure that they do not supply the product in other
territories not under their area of operation.
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The company should modify its advertising strategy and educate the customers about
its age-old existence and enhance its brand image. This will appeal to the target
customers of middle and older age groups apart from the younger generation in
which PEPSI has a good hold.
First and foremost things are that, whatever the policy is going to be formulated
it should not be same for all the areas. Different policies should be framed and
implemented at different areas by looking and keeping various variables in the
mind like buying habits, preferences, education level financial position of that
particular area and standard if living etc.
Rural market being a very potential segment needs very quick and prompt efforts
to be taken to capture this high volume market.
Many retailers complained regarding irregularly in visit by the executives. They
also said that executive give very bad response to their complaints. It is necessary
that executive should make frequent visit to cover each outlet and try to provide
them best
105
Pouches, foreign particles were found in few bottles, so proper quality control
measures should be implemented as company’s reputation are at stake.
There is a great market of soda (1 Lit.) but the supply of this pack is very poor,
so the supply should be made possible quickly.
Quality of PET bottle should be improved so that most problems can be
minimized.
Soft drink is still considered a treat virtually a luxury, so it possible company
should cut down its price especially of cans.
Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets etc
should be made at regular interval.
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Claim should be provided to the deserving retailers.
Wall painting should be made regularly in the area, as it is a good medium of
advertisement.
Proper attention should be given to the retailer’s problem so that they take
interest to increase the sale.
Proper advertisement should be made at railway station, bus stand, posh area,
major market and economies place etc.
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A company may create favorable impression among the youth if they sponsors
small events like college festivals, university programs, school functions, fashion
shows, quiz programs etc.
Retailers need display material. To enhance the marketing of the product.
108
Limitations
109
LIMITATIONS
The retailers in many cases reluctant to answered many questions.
The respondents may be biased on influenced by some other factors.
Time and money were the greatest limitation in carrying out the survey.
A number of retailers (pan-shop) being illiterate, it took us lot of time in
collecting information.
The mere information which we get from the retailers is not sufficient to arrive at
a conclusion.
The seasonal changes affect the sell.
110
MAIN
KEY POINTS
111
MAIN KEY POINTS
Service aspect of agencies is very effective, they deliver their product according
to the demand a just in time.
After conducting the market survey of retailer in Ghaziabad city,
I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of PET.
After analyzing the market and calculate the weight age, the result comes out that
Mountain Dew is the leading product of Pepsi-Cola.
Consumers do have a demand for 200 ml and 2 lit. bottle.
Retailers have problem in display material.
112
Most of the place like cinema hall and educational institutions are dominated by
Pepsi-Cola.
Retailers have complaint regarding the PET, that more better quality bottle
should be used.
Aquafina (Pepsi-Cola) in Ghaziabad city dominated Kinley (Coca-Cola) mineral
water.
Retailers have a demand of some offers and free gifts.
113
Kinley soda (Coca-Coal) is also dominated by Lehar soda (Pepsi-Cola) in Delhi..
Maaza (Coca-Cola) is also dominated by Slice(Pepsi-Cola).
It was seen that Lehar Soda (1 lit.) in particular remains short during the season.
In the market there is only a retailer on which the sale of the different product of
different company depends
114
Bibliography
115
BIBLIOGRAPHY
MARKETING MANAGEMENT “KOTLER PHILIP”
Pearson Education singapore 12th edition
MARKETING OF PRINCIPLE
.“GARY ARMSTRONG” Pearson Education 11th edition
RESEARCH METHODOLOGY
.“KOTHARI C. R.”New age international publisher (DELHI)2nd revised edition 2004 reprint 2008
116
MAGAZINES:
Advertising Management
Business India
Business Today
Business World
WEBSITE:
www.pepsiworld.com
www.pepsico.com
www.google.com
117
ANEXURE
118
Questionnaire
119
120
QUESTIONNAIRE
Name :____________________________________
Address :
____________________________________
____________________________________
Contact No. :____________________________________
Q.1. Are your customer satisfied with Pepsi?
a. yes
b. no
Q.2. Do you provide home delivery of Pepsi ?
a. Yes
b. no
Q.3. How many houses?
121
122
Q.4. Which brand of soft drink do you sell?
a. Only Pepsi-Cola
b. Only Coca Cola
c. Both.
Q.5. Which quantity of soft drinks you have?
a. 200 ml
b. 300 ml
c. 500 ml
d. 2 lit.
e. All
Q.6. Which brand of soda do you sell?
a. Leher Soda (Pepsi-Cola)
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b. Kinley(Coca Cola)
Q.7. Which brand of mineral water do you sell?
a. Aquafina (Pepsi-Cola)
b. Kinley (Coca Cola)
c. Others.
Q.8. Chilling equipment owned by you?]
a. Only Pepsi-Cola
b. Only Coca Cola
c. Both.
Q.9. Do you get timely supply of these brands with proper schemes?
a. Yes
b. No.
124
Q.10. Is your chilling equipment working properly?
a. Pepsi-Cola = Yes…. No….
b. Coca-Cola = Yes…. No….
Q.11. During breakdown of chilling equipment who gives better service?
a. Only Pepsi-Cola .
b. Only Coca Cola
Q.12. Whose racks do you own?
a. Only Pepsi-Cola
b. Only Coca Cola
c. Both.
Q.13. Is there increase in sales due to display of the racks?
a. Yes
125
b. No.
Q.14. Availability of glow boards provided by company through promotional scheme.
a. Yes
b. No.
Q.15. Are your customer SATISFIED of PEPSI schemes ?
a. Yes
b. No
c. Cant Say
Q.16. Is the brand of pepsi is high on your sale?
a. yes
b. no
c. cant say
Q.17. . What %tage increase in sale you get after the schemes offered by PEPSI?
a. 5-15%
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b.25- 30%
c. more than 50
Q.18
200 ML 300ML
STOCK REGULAR
PCI CCX PCY CCX
600 ML 2 LIT
STOCK PET
PCI CCX PCI CCX
127
128