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Marketing equipment excellence in Jalandhar territory for PepsiCo India Bachelor of Business Administration (Marketing) Submitted in partial fulfillment of the requirements for award of Bachelor of Business Administration Submitted by

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Page 1: Pepsico Limited

Marketing equipment excellence in Jalandhar territory for PepsiCo India

Bachelor of Business Administration (Marketing)

Submitted in partial fulfillment of the requirements for award of Bachelor of Business Administration

Submitted by

Page 2: Pepsico Limited

Marketing equipment excellence in Jalandhar territory for PepsiCo India

Certificate of Internal Guide

This is to certify that the project titled Marketing Equipment Excellence in

Jallandar Territory for PepsiCo is a bonafide work carried out by _____________

a candidate for the award of Bachelor of Business Administration of MAIMS

under my guidance and direction.

Signature of guide

Date: Name:

Place: Designation:

Institute:

Page 3: Pepsico Limited

Marketing equipment excellence in Jalandhar territory for PepsiCo India

A

REPORT

ON

“Marketing equipment

excellence in Jalandhar

territory for PepsiCo India”

Date of submission:-

SUBMITTEDBY:-

Page 4: Pepsico Limited

Marketing equipment excellence in Jalandhar territory for PepsiCo India

Report submitted in partial fulf i lment of the

requirements of BBA program of

ABSTRACT

Market ing Equipment Excel lence i s de f ined as c rea t ing an

env i ronment in and a round the ou t le t tha t t r i ggers shopper /consumer

impu lse to purchase o r consume Peps ico p roduc ts .

I t re fe rs to the p rocess whereby the v is ib i l i t y o f Peps iCo p roduc ts i s

inc reased by address ing the i ssue o f p lacement o f co r rec t p roduc t

and merchand ise a t the r igh t loca t ion ( i .e .V is i -coo le rs , racks a t the

r igh t p lace) , spec ia l l y the p ro jec t dea ls w i th “R igh t V is i -coo le r in

r igh t ou t le t ” accord ing to accord ing to annua l sa le vo lume o f ou t le t .

Out le ts can range f rom a Pan /B id i Shop , Dhabas , Sweet Shop,

STD/PCO’s , Con fec t ionary Shop, Depar tmenta l S to re , and Grocery

S to re to a ho te l . An ou t le t shou ld have p roper V is i -Coo le r to ca te r

the need o f i t s consumers demand in bo th aspec ts quan t i t y and

qua l i t y (coo lness) w ise o f Peps iCo ’s p roduc ts . V is i -coo le r and racks

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

pure and fu l l y s tocked and r igh t l y p laced i .e . on ly Peps i p roduc ts in

i t and shou ld be p laced accord ing to a P lano g ram.

Use o f D isp lay Schemes, S t i ckers (POS) , Po in te rs , Cu t -ou ts ,

S ignage ’s , Racks , F langes , F lex ’s , A i r Hangers , Board ’s , Menu

Cards , Pos te r ’ s , S tandee ’s , She l f -S t r ips , Combo Shots , Wa l l

Pa in t ings and G low S igns( lo l l i pops) he lp Peps ico to genera te

pos i t i ve impu lse in consumer ’s m ind .

The use o f these cus tomer inc idences depends on the

sa les vo lume accoun tab i l i t y and p ro f i t tu rnover o f a par t i cu la r s to re

as these a re g iven f ree o f cos t by the company to the ou t le t . The

s tudy a ims a t f i r s t l y to p rov ide exce l len t ava i lab i l i t y o f p roper

capac i t y ’ s ch i l l i ng equ ipment fo r coo l ing co ld d r inks and f ru i t j u i ces

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

packs and bo t t les in ou t le ts accord ing to the i r annua l sa le vo lume

and f requency o f purchase c r i te r ion .

Second ly , t r y ing to f i gu re ou t accord ing to the above

aspec t , how can we inc rease the sa le o f the p roduc t and share by

inc reas ing the ava i lab i l i t y o f a l l t he s tock keep ing un i t (SKU’S) and

i s the i r any p robab i l i t y o f conver t ing tha t ou t le t i n to a b lue zone

Acknowledgements

With u tmos t reverence , I wou ld l i ke to thank ____________ ,MAIMS,

fo r g iv ing me an oppor tun i t y to do my Summer In te rnsh ip Program a t

Aradhana Dr inks& Beverages Pv t . L td (A Subs id ia ry Of Peps ico Ind ia

Ho ld ings Pv t . L td . ) Ja landhar .

I am h igh ly indeb ted to Mr. Ra j Sr in ivas (Manager -Sa les

Deve lopment ) A radhana Dr inks& Beverages Pv t . L td . , Ja landhar and

who has been ins t rumenta l i n mak ing my Summer In te rnsh ip Program

happen.

I t i s my d is t inc t honor to thank Mr. V imal D ix i t (Ass t .

Manager -Sa les Deve lopment ) , A radhana Dr inks& Beverages Pv t .

L td . , Ja landhar my company gu ide and my p roud p r i v i l ege to thank

Prof . Mr . Manoj verma my Facu l t y gu ide who a re cons tan t source o f

counse l ing , insp i ra t ion and inva luab le gu idance in course o f my

p ro jec t .

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

I am espec ia l l y thank fu l to my paren ts and my f r iends who a re

a lways a cons tan t source o f insp i ra t ion fo r me.

Rea l i za t ion o f th i s p ro jec t in to rea l i t y has p rov ided me

w i th a ra re chance to express in a l l ea rnes tness my s incere thanks

to one and a l l o thers whose sugges t ions f rom t ime to t ime has

resu l ted in the cu l t i va t ion o f th i s s tudy .

TABLE OF CONTENTS

Acknowledgements 1Abstract 2

Introduction

i. Company Profileii. Historical Background

iii. Products and Brandiv. Performance with Purpose

Main Text

i. Objectiveii. Scope, Purpose and Limitations of the Study

iii. Methodology

Market audit & Visi excellence

The Importance of Visual Merchandising

4 Ps

Pre-se l l Process

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

Bottling Operation

Packaging trend

Agri Business Operation

Slice Re-launch

INTRODUCTION

Company Profile

Pepsi-Cola

Type Cola

Manufacturer PepsiCo, Inc.

Country of Origin United States

Introduced 1903

Related products Coca-Cola

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

PepsiCo is a world leader in convenience foods and beverages, with 2007

revenues of more than $39 billion and more than 185,000 employees across the

world. Its world renowned brands are available in nearly 200 countries and

territories.

The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas

Beverages (PAB) and PepsiCo International (PI).

PAF includes Frito-Lay North America, Quaker Foods North America and all Latin

America food and snack businesses, including Sabritas and Gamesa businesses in

Mexico. PAB includes PepsiCo Beverages North America and all Latin American

beverage businesses. PI includes all PepsiCo businesses in the United Kingdom,

Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200

countries and generate sales at the retail level of more than $98 billion.

Some 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.

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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Marketing equipment excellence in Jalandhar territory for PepsiCo India

PepsiCo’s mission is “To be the world's premier consumer

Products Company focused on convenient foods and

beverages.  PepsiCo seek to produce healthy financial

rewards to investors as PepsiCo provide opportunities for

growth and enrichment to its employees, PepsiCo

business partners and the communities in which PepsiCo

operate.  And in everything PepsiCo do, PepsiCo strive for

honesty, fairness and integrity.”

PepsiCo World Headquarters is located in Purchase, New York, approximately 45

minutes from New York City. The seven-building headquarters complex was

designed by Edward Durrell Stone, one of America's foremost architects. The

building occupies 10 acres of a 144-acre complex that includes the Donald M.

Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden

setting.

PepsiCo has four divisions worldwide:

Frito-Lay North America (FLNA)

PepsiCo Beverages North America (PBNA)

Quaker Foods North America (QFNA)

PepsiCo International (PI)

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PepsiCo entered India in 1989 and has grown to become the

country’s largest selling food and beverage companies. One of the largest

multinational investors in the country, PepsiCo has established a business which

aims to serve the long term dynamic needs of consumers in India.

Organizational Values

PepsiCo’s Commitment:

PepsiCo’s values reflect its aspirations - the kind of company we want Pepsico to

be. Pepsico express its values in the form of a commitment.

PepsiCo commitment is:

Sustained Growth is fundamental to motivating and measuring its success.

PepsiCo’s quest for sustained growth stimulates innovation, places a value on

results, and helps us understand whether today's actions will contribute to

PepsiCo’s future. It is about growth of people and company performance. It

prioritizes making a difference and getting things done.

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

Empowered People means we have the freedom to act and think in ways that we

feel will get the job done, while being consistent with the processes that ensure

proper governance and being mindful of the rest of the company's needs.

Responsibility and Trust form the foundation for healthy growth. It's about

earning the confidence that other people place in us as individuals and as a

company. Our responsibility means we take personal and corporate ownership for

all we do, to be good stewards of the resources entrusted to us. We build trust

between ourselves and others by walking the talk and being committed to

succeeding together.

Guiding Principles:

This is how PEPSICO’s carry out it/s commitment. PSPSICO must always strive to:

Care for customers, consumers and the world we live in. We are driven by an

intense, competitive spirit in the marketplace, but we direct this spirit toward

solutions that achieve a win for each of our constituents as well as a win for the

corporation. Our success depends on a thorough understanding of our customers,

consumers and communities. Caring means going the extra mile. Essentially, this

is a spirit of growing rather than taking.

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Sell only products we can be proud of. The test of our standards is that we must

be able to personally endorse our products without reservation and consume

them ourselves. This principle extends to every part of the business, from the

purchasing of ingredients to the point where our products reach the consumer's

hands.

Speak with truth and candor. We speak up, telling the whole picture, not just

what is convenient to achieving individual goals. In addition to being clear, honest

and accurate, we take responsibility to ensure our communications are

understood.

Balance short term and long term. We make decisions that hold both short-term

and long-term risks and benefits in balance over time. Without this balance, we

cannot achieve the goal of sustainable growth.

Win with diversity and inclusion. We leverage a work environment that

embraces people with diverse backgrounds, traits and different ways of thinking.

This leads to innovation, the ability to identify new market opportunities, all of

which helps develop new products and drives our ability to sustain our

commitments to growth through empowered people.

Respect others and succeed together. This company is built on individual

excellence and personal accountability, but no one can achieve our goals by

acting alone. We need great people who also have the capability of working

together, whether in structured teams or informal collaboration. Mutual success

is absolutely dependent on treating everyone who touches the business with

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respect, inside and outside the company. A spirit of fun, our respect for others

and the value we put on teamwork make us a company people enjoy being part

of, and this enables us to deliver world-class performance.

Customers

PepsiCo as a company is committed to marketing their products to all groups,

treating all customers with respect, sensitivity and fairness, while providing some

of the greatest products on earth. Early in its history -- as far back as the 1940s --

Pepsi-Cola recognized the importance of diversity. Pepsi pioneered targeted

marketing and national lifestyle advertising featuring minorities. They developed

education and sports programs spotlighting minorities. The company also

partnered with many groups to create programs that contribute to minority

communities. Over the years, its success has been recognized with numerous

awards. Most importantly, their products are purchased and enjoyed by all

groups of consumers.

Suppliers

PepsiCo is committed to welcome business partners who represent all people and

purchasing quality products and services from a diverse supplier base. It is a

leader in seeking out and working with minority and women suppliers. In 2004,

the company spent $831 million with minority and women vendors.

Employees and Careers

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PepsiCo is committed to hiring and retaining the best talent to fill each and every

job in the corporation. And it is equally committed to fostering an atmosphere of

caring, open communication and candor among its employees, where every one is

treated with respect.

PepsiCo has been nationally recognized as one of the top places for women and

minorities to work. We were one of the first companies to begin hiring minorities

in professional positions, as far back as the 1940s. We were the first Fortune 500

Company to have an African-American vice president.

That commitment to diversity continues today. The organization places a great

deal of emphasis on personal integrity and believe in long-term results, from real

accomplishments, are the only fair way to judge performance. PepsiCo respects

individual differences in culture, ethnicity and color. It is committed to equal

opportunity for all employees and applicants.

Three major sustainable advantages give PepsiCo a competitive edge as they

operate in the global marketplace:

Big, muscular brands

Proven ability to innovate and create differentiated products

Powerful go-to-market systems.

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PepsiCo India and its partners have invested more than U.S.$700 million since the

company was established in the country in 1989. In India, PepsiCo provides direct

employment to 4,000 people and indirect employment to 60,000 people including

suppliers and distributors.

PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7

UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi and

7Up Light; hydrating and nutritional beverages such as Aquafina drinking water,

isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based

drinks – Tropicana, Tropicana Twister and Slice. Our local brands – Lehar Everess

Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brands.

Historical Background

Pepsi was first made in New Bern, North Carolina in the United States in the early

1890s by pharmacist Caleb Bradham. In 1898, "Brad's drink" was changed to

"Pepsi-Cola" and later trademarked on June 16, 1903.There are several theories

on the origin of the word "pepsi".

The only two discussed within the current PepsiCo website are the following:

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

1. Caleb Bradham bought the name "Pep Kola" from a local competitor and

changed it to Pepsi-Cola.

2. "Pepsi-Cola" is an anagram for "Episcopal" - a large church across the street

from Bradham's drugstore. There is a plaque at the site of the original

drugstore documenting this, though PepsiCo has denied this theory.

The word Pepsi comes from the Greek word "pepsi" (πέψη), which is a medical

term, describing the food dissolving process within one's stomach. It is also a

medical term, that describes a problem with one's stomach to dissolve foods

properly.

Another theory is that Caleb Bradham and his customers simply thought the

name sounded good or the fact that the drink had some kind of "pep" in it

because it was a carbonated drink, they gave it the name "Pepsi".

It was made of carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether

the original recipe included the enzyme pepsin is disputed.

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a

rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year,

Pepsi was sold in six-ounce bottles and sales increased to 19,848 gallons. In 1924,

Pepsi received its first logo redesign since the original design of 1905. In 1926, the

logo was changed again. In 1929, automobile race pioneer Barney Oldfield

endorsed Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating,

a fine bracer before a race".

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In 1929, the Pepsi-Cola Company went bankrupt during the Great Depression- in

large part due financial losses incurred by speculating on wildly fluctuating sugar

prices as a result of World War I. Assets were sold and Roy C. Megargel bought

the Pepsi trademark.

Eight years later, the company went bankrupt again. Pepsi's assets were then

purchased by Charles Guth, the President of Loft Inc. Loft was a candy

manufacturer with retail stores that contained soda fountains. He sought to

replace Coca-Cola at his stores' fountains after Coke refused to give him a

discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola

syrup formula.

Rise in popularity

During the Great Depression, Pepsi gained popularity following the introduction in

1929 of a 10-ounce bottle. Initially priced at 10 cents, sales were slow, but when

the price was slashed to five cents, sales increased substantially. With 12 ounces a

bottle instead of the six ounces Coca-Cola sold, Pepsi turned the price difference

to its advantage with a radio advertising campaign, featuring the jingle "Pepsi cola

hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too /

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Pepsi-Cola is the drink for you," encouraging price-watching consumers to switch

to Pepsi, while obliquely referring to the Coca-Cola standard of six ounces a bottle

for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at the

same price. Coming at a time of economic crisis, the campaign succeeded in

boosting Pepsi's status. In 1936 alone 500,000,000 bottles of Pepsi were

consumed. From 1936 to 1938, Pepsi Cola's profits doubled.

Pepsi's success under Guth came while the Loft Candy business was faltering.

Since he had initially used Loft's finances and facilities to establish the new Pepsi

success, the near-bankrupt Loft Company sued Guth for possession of the Pepsi

Cola company. A long legal battle, Guth v. Loft, then ensued, with the case

reaching the Delaware Supreme Court and ultimately ending in a loss for Guth.

Loft now owned Pepsi, and the two companies did a merger, then immediately

spun off the Loft company.

Marketing

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where

PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During

these blind taste tests the majority of participants picked Pepsi as the better

tasting of the two soft drinks. PepsiCo took great advantage of the campaign with

television commercials reporting the test results to the public.

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In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By

2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders"

that "helped redefine promotion marketing.”

In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first

time, included more than thirty different backgrounds on each can, introducing a

new background every three weeks.

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

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Products and Brands

S ince Peps i ’ s entry into the Ind ian market in 1989,

severa l brands f rom i ts port fo l io have become estab l i shed

category leaders . Brand Peps i i s now the 2nd b iggest brand in

the country . Peps iCo’s port fo l io of beverage brands in Ind ia

inc ludes the f lagsh ip co la brand Peps i ; D iet Peps i ; two f lavours

of Mir inda – Orange and Lemon; S l i ce , 7UP; Mounta in Dew;

packaged dr ink ing water - Aquaf ina; var iants of the f ru i t dr ink

brand S l i ce ; the 100 per cent f ru i t ju ice brand Tropicana in

severa l var iants and the wor ld ’s lead ing sports dr ink Gatorade.

I t has more than 40 products in i t s product l ines

bas ica l ly ava i lab le in RGB ( returnable g lass bott les ) i .e .200ml ,

250ml , 300ml , 330ml , and Pets i .e . 1 l t r , 500/600 ml , 1 .2 l t r , 2 l t r .

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PepsiCo launched in India its international fruit drink brand ‘Tropicana Twister’ on

Jan 28, 2008. Available in two sizes — 350ml at Rs. 22 and 1.2 litre at Rs. 70 —

Tropicana Twister is targeted at young adults seeking natural refreshment

beverage options.

Performance with Purpose

Performance with Purpose articulates PepsiCo India's belief that its businesses are

intrinsically connected to the communities and world that surrounds it.

Performance with Purpose means delivering superior financial performance at the

same time as we improve the world.

To deliver on this commitment, PepsiCo India will build on the incredibly strong

foundation of achievement and scale up its initiatives while focusing on the

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following 4 critical areas that have a business link and where Pepsico believe that

we can have the most impact.

1. PepsiCo India continues to expand its expertise in water conservation.

2. PepsiCo India’s Agri-partnerships with farmers help farmers across the

country grow and earn more.

3. PepsiCo India continues to strengthen its Solid Waste Management

initiatives. These award winning initiatives will establish Zero Solid Waste

centres in districts throughout the country.

4. PepsiCo India will stay committed to the health and well-being of children.

It will continue to provide children with a healthy and fun portfolio while

simultaneously tackling the calories out’ side of the equation by expanding

its Get Active programme for kids, especially for school going children.

PepsiCo has initiated the Get Active programme that promotes active

lifestyles and healthy nutritional habits among children in approximately

120 schools located in Delhi and Mumbai.

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PEPSICO’s role in Conserving the world's

most precious asset: Water

PepsiCo is committed to minimizing the impact of its business on the

environment and recognizes that corporations can play a key role in using

scarce resources such as water with care and responsibility.

While agriculture utilizes the bulk of fresh water in India (83%), industry uses

6% of which the beverage industry uses but a mere 0.04%. But every drop

counts and PepsiCo India's primary focus in its beverage and snacks plants

has been on conserving water at each stage of the manufacturing process.

Positive Water Balance

In 2003 PepsiCo India embarked on its journey to achieve Positive Water

Balance by 2009. In other words, the total water that is conserved or

recharged at the plant and community level should exceed the total water

usage.

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Reducing water debit

The pursuit of the vision to

achieve Positive Water Balance

resulted in water as a resource

being "revalued" across the

organization...

Strengthening water credit

Having reduced the "debit" side of the

water balance equation significantly,

attention was focused on earning the

"credits" to achieve Positive Water

Balance...

Reducing water debit

The pursuit of the vision to achieve Positive Water Balance resulted in water

as a resource being "revalued" across the organization. This, in turn,

catalyzed a comprehensive movement to conserve and optimize water usage

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within the manufacturing process (or the debit side). The multi-pronged

approach across manufacturing plants included innovative reuse and

recycling initiatives in the manufacturing process that focused on the

reduction of water usage. In the last five years, these initiatives in India have

enabled PepsiCo India to reduce water use in manufacturing plants by over

60%, and--in the last two years alone-- the company has saved over 2 billion

liters of water.

In-plant water recharge and harvesting

The multi-pronged approach comprises awareness, commitment and metrics,

installation of water recovery equipment and improved water management

practices. Thanks to significant contributions from our beverage plants, along

with the tremendous amount of water recycled through the starch recovery

process used in our snack plants, PepsiCo reduced water use in

manufacturing plants by over 60% and in the last two years itself the

company has saved over

2 billion litres of water by reusing water for processes such as cooling towers,

watering gardens and flushes, PepsiCo India plants achieved a total

reduction in waste water of over 80% in 2006 and 2007.

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Zero Water Discharge

Harvesting Water

Rain or roof water harvesting methods have become standard practice for all

PepsiCo plants in order to maintain and strengthen water reserves in the

surrounding areas. Examples consist of the Jainpur, Bazpur, Bharuch,

Palakkad, Panipat and Neelamangala plants, along with the snack plants in

Channo and Pune, which harvest and collect rain water in excavated lakes

and ponds while the Mamundar, Mahul and Panipat plants use roof water

harvesting to rejuvenate the surrounding aquifers.

Strengthening water credit

Having reduced the "debit" side of the water balance equation significantly,

attention was focused on earning the "credits" to achieve Positive Water

Balance. Rain and roof water harvesting structures were constructed

whereever feasible. Community water projects were initiated, and

comprehensive watershed management programmes in partnership with

TERI (The Energy Resources Institute) in diverse and challenging geographic

locations were started. Next on the agenda was the untapped potential for

significant water reductions through interventions in agriculture.

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Community Projects

Providing water to surrounding communities has been another key focus

area for PepsiCo India plants in Neelamangala in Karnataka, Palakkad in

Kerala, and Sangareddy and Mamandur in Tamil Nadu. Due to acute water

scarcity in these villages, thousands of villagers had to walk a distance of 1 to

2 kms each way to collect water. With PepsiCo's support, villagers

participated and actively contributed to the construction of taps, water

tanks, bore wells and submergible pumps in their villages.

The benefits of PepsiCo’s community water initiatives in these villages were

tremendous. In Mamandur and Sangareddy, the lives of more than

7,500 community members have become considerably easier. Through the

efforts of the PepsiCo Palakkad plant, clean water was provided to more than

2,000 village members while PepsiCo's Neelamangala plant supported rural

water projects in 2 villages which covered 2,500 people in these locations

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Water conservation in agriculture

Agricultural interventions are another opportune area to achieve water

balance. Over the last three years, PepsiCo India, in partnership with the

Punjab Government, has been involved in trials of direct seeding versus

conventional transplantation in rice fields. The direct seeding methodology

has shown the potential to reduce water consumption significantly.

The common method of growing Paddy is by first raising a nursery and then

manually transplanting it to a field "puddled" with three to four inches of

water. As opposed to this water intensive method, the direct seeding method

sows the seeds directly in the fields. This method results in a higher yield due

to the higher seeding density.

Over the last three years, PepsiCo India has conducted trials of various paddy

varieties in farmer's fields to validate the technology. A seeding machine

which can sow paddy seeds at a specified gap and at a uniform depth has

also been developed. Repeated direct seeding methodology trials have

demonstrated water savings of 30% (2.5 million litres/acre). A large-scale

implementation of this initiative has the potential to achieve huge water

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savings.

TERI-PepsiCo project in Karnataka and Uttaranchal

In 2004, PepsiCo partnered with The Energy and Resources Institute (TERI), a

scientific research organization, to study and rejuvenate local water bodies.

The aim of this project was to enhance the quality and access of water to

villagers in Neelamangala, Karnataka and around Dehradun and Mukteswar

in Uttaranchal and currently recharges 300 million litres of water every year.

The results of the partnership were commendable. Currently, PepsiCo’s

community project in Karnataka provides water, health and sanitation

services to 3,000 people residing in 4 villages.

Co

mmunity participation played an important role in the success of the project.

Local Government bodies, community youth groups and women’s self help

groups played a critical role in the construction of 128 toilets, 5 vermin

compost pits and 1 community vermin compost pit. To promote the

collection of solid waste, approximately 500 dustbins have been distributed

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to community members.

Agricultural programmers initiated in these areas also serve to improve

irrigation systems. Drip irrigation has been implemented in farmer’s fields

while a farm pond for storing water and using it to replenish a vegetable

garden is currently in the process of being constructed. Other ongoing

projects include the construction of a water recharge structure and a

rainwater harvesting structure for a school.

In addition to this, high yield cash crops and integrated pest management

systems are being promoted. Best practices on organic approaches are

shared with community members along with methods to improve moisture

content of the soil. The initiatives implemented in these communities also

include public education about sanitation and hygiene along with provision of

health care facilities and health education to improve awareness levels of

community members.

To supplement these programmes in a more holistic manner, enterprise and

sustainable livelihood development is also promoted and villagers are trained

in mushroom processing while self help groups are trained in various income

generation activities to help create a viable local economy. Besides being

deeply involved in the implementation of the various community projects,

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community members have also contributed financially to the ongoing work.

Progress made in Uttaranchal

In Uttarkhand, PepsiCo's partnership with TERI has been successful in

rejuvenating traditional water harvesting structures in villages. This initiative

has transformed 4 villages in Uttarkhand into model villages. The villagers

have also benefited immensely from the health and sanitation initiatives

developed with the support of PepsiCo and TERI along with a programme to

promote renewable energy. The results of this integrated watershed

development programme have created a holistic and sustainable change in

the villages.

Waste to Wealth by PEPSICO

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PepsiCo-Exnora's solid waste management programme

PepsiCo India continues to strengthen its Solid Waste Management initiatives in

partnership with Exnora, an environmental NGO. This award winning, income

generating partnership currently impacts more than 1,00,000 people in Tamil Nadu

and Panipat.

Award winning Zero Waste Management Programme in Pammal, Tamil

Nadu

Effective and environmentally friendly disposal of municipal waste is a major challenge

for local Government bodies. In partnership with the Government, NGOs and

community members, PepsiCo India continues to implement waste management

projects in various districts in the country.

Despite the creation of a detailed policy on Solid Waste Management and Handling

rules in 2000, very few municipalities in the country were able to completely comply

with these rules. PepsiCo India and EXNORA effectively implemented a model project in

Pammal district in Tamil Nadu that adhered to the Government policy on waste

management. The project created a visible difference in the local environment of the

region.

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Implemented in a few wards of the Pammal district and impacting a population of over

22,000, the programme imparted training on recycling waste rather than simply

relocating it. The programme involved the creation of infrastructure, usage of superior

grade EXORCO compost, recycling of plastic and steel waste, road cleaning, street

beautification, sanitation awareness programmes and a tree plantation programme

that include the concept of 'Each Child Adopt a Tree'.

Households were encouraged to segregate their bio-degradable waste from their

recyclable waste. The bio-degradable waste was converted into high quality organic

manure through the process of vermi-culture. The sale of recyclable waste provided a

stream of income to sustain the project which improved the ambience of Pammal

district.

Every aspect of the programme was built around maximum community and

Government participation which helped the programme evolve into a self sustaining

model. This unique initiative was awarded the environmental Golden Peacock Award

for Innovation in 2006 and was recognized as a model project by UNICEF in 2007.

PepsiCo-EXNORA's Zero Waste Management initiative in Pammal

recognized as a model project by UNICEF

PepsiCo-EXNORA's pioneering Zero Waste Management project in Pammal, Tamil Nadu

was selected by UNICEF as a model project and a centre for international learning in the

area of Urban Solid Waste Management.

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With an aim to

understand the planning, process, implementation and impact of the program, a team

of 21 UNICEF delegates from 9 countries, which consisted of Denmark, Egypt, Zambia,

Phillipines, Indonesia, Nepal, East Jerusalem, Djibouti and Ethiopia, visited the Pammal

project and recognized it as being a unique initiative which demonstrates a strong

partnership between community members, the Government, NGOs and the corporate

sector.

In 2007, UNICEF included urban solid waste management as part of its sanitation pillar

and it selected Pammal's Zero Waste Management centre as a best case study for it

team of international delegates. This prestigious recognition by UNICEF follows the

Golden Peacock Award For Innovation received by PepsiCo India and Exnora for their

partnership in this unique waste recycling program.

The Environmental Training Institute - promoting knowledge and

building capacity in solid waste management

EXNORA and PepsiCo inaugurated the Environmental Training Institute (EXPEETI) in

2007.

The Training Institute acts as a knowledge centre and creates awareness in the area of

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solid waste management for stakeholders and various decision makers. An integral

responsibility of this initiative is to spread knowledge on how to adapt existing

technologies and customize them to suit specific local conditions. The Training Institute

serves to support and strengthen the capacity of the local Government and conducts

training programmes for all stakeholders, promotes information exchange mechanisms

and helps bring together a network of professionals working in the area of solid waste

management.

Recycling initiatives in Nagapattinam, Cuddalore, Tenkasi, Sangareddy in

Tamil Nadu and Panipat in Haryana

The inauguration of the PepsiCo India-EXNORA Zero Waste Management Project in

Nagapattinam marked the expansion of PepsiCo India and Exnora's efforts to manage

domestic solid waste in an environmentally-friendly manner.

Continuous door-to-door campaigns, rallies and street plays are carried out to motivate

people to segregate organic and inorganic garbage at source. The organic waste is

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converted into compost using vermi-culture and the inorganic waste is sorted into

categories for recycling.

The innovative project not only promotes sanitary surroundings, but provides several

opportunities for micro-enterprises such as PET bottle, waste paper and tetra pack

recycling.

Along with this project in Nagapattinam, the PepsiCo Foundation also initiated similar

projects in Cuddalore, Tenkasi and Sangareddy in Tamil Nadu and in 2007, inaugarated

the programme in Panipat, Haryana.

PepsiCo India's agri-partnerships with farmers help

farmers across the country grow and earn more

PepsiCo's involvement in Indian agriculture stems from its vision of creating a

cost-effective, localised agri-base in India by leveraging its access to world

class agricultural practices. During the process of working in close

cooperation with State Governments, PepsiCo helped transform the lives of

thousands of farmers by helping them refine their farming techniques and

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raise farm productivity.

The most ambitious project is a joint programme, launched in 1989, between

PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana and

Punjab Agro Industries Corporation (PAIC) in Chandigarh. The programme

focuses on evolving agricultural practices to help Punjab farmers produce

crops that would make Indian products internationally competitive.

PepsiCo pioneered the concept of contract farming under which the PepsiCo

team transfers agriculture technology to farmers who, in turn, produce raw

material for PepsiCo products. To support the initiative PepsiCo set up a 27-

acre research and demonstration farm in Punjab to conduct farm trials of

new varieties of tomato, potato and other crops.

The programme, which includes seed production, has successfully evaluated

the following crops:

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several varieties of basmati rice more than 200 varieties and hybrids of

chilli

25 varieties and hybrids of corn

more than 60 varieties of peanut

more than 100 varieties and hybrids of tomato.

Additionally, the development of new tomato varieties has helped increase

total annual production of tomato varieties from 28,000 tons to over 200,000

tons in Punjab. Yields have more than tripled from 16 tons to 54 tons per

hectare.

Under the programme, 6 high-quality, high-yield potato varieties have also

been introduced to Indian farmers. These new potato seeds have helped to

increase farm income and enabled PepsiCo to procure world class chip-grade

potatoes for its Frito Lay snacks division. The company has partnered with

more than 15,000 farmers working in over 10,000 acres across Punjab, U.P.,

Karnataka, Jharkand West Bengal and Maharashtra for the supply of

potatoes.

A juicy opportunity-PepsiCo Citrus Project Extending the

initiative………

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The PepsiCo/Tropicana and PAGREXCO (Punjab Agri Export Corporation)

Citrus Development Programme has emerged as one of the most successful

models of public-private partnerships in Indian agri-business.PepsiCo

supported the Punjab Government on the citrus project which served

to improve the quality of life for thousands of farmers and also created a

localised supply base for citrus juice under Tropicana, the world's largest

juice brand. PepsiCo was also interested in exploring the export potential of

the local produce. The project, signed in 2002, served to deepen PepsiCo's

involvement in Punjab agriculture which started in 1989. It also marked a

step forward in fulfilling its commitment to improving the quality of life for

thousands of farmers.

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Today, farmers can choose from 16 varieties of rootstock and 32 varieties of

citrus. This is one of the largest collections at a commercial nursery, creating

a world-class source of planting material for Punjab's farmers. This is a

mutually beneficial situation for PepsiCo and the farmers of Punjab.

PepsiCo also provided technical support and expertise to the Punjab

Government to set up two fruit processing plants in Hoshiarpur and Abohar

which are prime citrus growing areas in Punjab. Each plant is capable of

processing multiple fruits, offering an advantaged supply chain for fruit juice

concentrates. Each Plant contains cold stores with a capacity of 2400 tons for

finished products. Trials have been carried out with Kinnow, Musambi,

Tomatoes, Mangoes, Melons and Strawberries.

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PEPSICO for Healthy Kids

PepsiCo India stays committed to the health and well-being of children.

It will continue to provide children with a healthy and fun portfolio while

simultaneously tackling the 'calories out' side of the equation by

expanding its Get Active programme for kids.

PepsiCo India believes that in order to build its business in a sustainable

manner, it has a responsibility to ensure that its consumers are

nourished in multiple dimensions. PepsiCo India has been proactive in

taking a variety of steps to sustain and strengthen this platform of

human sustainability.

PepsiCo's diverse portfolio

PepsiCo’s diverse portfolio reflects its commitment to provide

consumers with nutritious options. The wide spectrum of nutritious

options offered by PepsiCo includes its range of Tropicana juices,

rehydrating Gatorade sports drinks and Aquafina packaged drinking

water. Frito Lay’s healthy snack options include the high-fibre breakfast

cereal, Quaker Oats, while the nutritious Lehar Lite range of snacks

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contains 25% less oil. Its core products, Lay’s Kurkure, Uncle Chipps and

Cheetos are cooked in Rice Bran Oil to significantly reduce saturated

fats. The Lehar “roasted” line of namkeens uses oil sparingly in its

products and only in the seasoning. None of Frito Lay’s products contain

MSG or transfats and all of them contain voluntary J

The Health and Wellness agenda is focused on several fronts to make its

existing core products healthier with reduced fats, fewer calories and no

caffeine as well as expanding it range of 'good for you' products such as

Quaker Oats, Tropicana and Gatorade.

PepsiCo India is focusing its innovation, and Research and Development

efforts to make its core offerings healthier. For example products such

as Lay's, Kurkure and Cheetos are now healthier as they are cooked in

Rice bran oil which has successfully reduced the saturated fat in these

brands by 40%,

PepsiCo India is also committed to expand it's range of healthy products

which include the high-fiber breakfast cereal, Quaker Oats, while it

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continuing to work on expanding its range of Tropicana juice variants.

Another key effort lies in tackling the ‘calories out’ side of the equation

by encouraging active lifestyles especially for school going children.

PepsiCo has initiated the Get Active programme that promotes active

lifestyles and healthy nutritional habits among children in approximately

120 schools located in Delhi and Mumbai.

Calories Out - Getting Active!

One of the ways to battle the growing issue of obesity is to tackle the

'calories out' side of the equation by encouraging active lifestyles

especially for school going children.

Launched in 2006, Get Active is a partnership between PepsiCo India

and Swashrit Society, an NGO. The programme currently covers 1,00,000

children enrolled in 120 schools in Mumbai and Delhi.

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Through the Get Active programme, PepsiCo's snack and beverage

businesses collaborate with the National Advisory Board - comprising

medical practitioners, nutritionists and public health policy experts - to

work towards our vision of improving the health and well-being of our

children. The Get Active programme promotes active lifestyles and

healthy nutritional habits among children in schools.

In 2007, a Get Active seminar was organised by Swashrit in association

with the Indian Medical Association (IMA) to facilitate a discussion

between leading NGOs, principals and representatives from CBSE on

how to incorporate an essential balance of physical activities into school

curriculums. This first of its kind seminar reflected PepsiCo's

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commitment to spreading awareness and creating a holistic network of

professionals working in areas relevant to this issue.

In 2008, Get Active will be implemented nationally in all 6 metros.

Environment Awards

PepsiCo takes pride in its achievements

PepsiCo-Exnora waste management programme in Chennai wins

Environmental Golden Peacock Award for Innovation in 2006

PepsiCo’s Palakkad plant won Golden Peacock National Award for

Environment Management in 2005

Neelamangala plant selected for the Parisara Mithra Award for

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environment in 2005

PepsiCo Madurai plant won Golden Peacock National Award for

Environment Management in 2001 and 2002

PepsiCo’s snack food company, Frito-Lay, is the leader in the branded potato chip

market and was amongst the first companies to eliminate the use of trans fats

and MSG in its products. It manufactures Lay’s Potato Chips; Cheetos extruded

snacks, Uncle Chipps and traditional namkeen snacks under the Kurkure and

Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, along with

Lehar Lites, low fat and roasted snack options enhance the choices available to

the growing health and wellness needs of our consumers. Frito Lay’s core

products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to

significantly reduce saturated fats and all of its products contain voluntary

nutritional labeling on their packets.

The group has built an expansive beverage, snack food and exports business and

to support the operations are the group’s 37 bottling plants in India, of which 16

are company owned and 21 are franchisee owned. In addition to this, PepsiCo’s

Frito Lay snack division has 3 state of the art plants. PepsiCo’s business is based

on its sustainability vision of making tomorrow better than today. PEPSICO’S

commitment to living by this vision every day is visible in our contribution to our

country, consumers, farmers and our people.

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Main Text

OBJECTIVE

To understand the funct ion ing and d is t r ibut ion channels of

Peps iCo.

To ana lyze the ut i l i zat ion and ef fect iveness of var ious

market ing equipments on reta i l out lets prov ided by the

company.

To categor ize var ious out lets in the Ja landhar reg ion as per

the i r sa les/vo lume and f requency of purchase.

To f igure out the problemat ic out lets and take correct ive

measures wi th he lp of our sen iors .

To understand the t rade market ing ef fort of Peps iCo Ltd in

Ja landhar reg ion.

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To have a comparat ive ana lys i s o f d i f ferent market p layers in

sof t dr inks industry which he lps to company for improv ing

i t se l f on weak po ints .

Analys i s o f the current market promot ional programmes run

by major p layers which he lps to organizat ion for improv ing

i t se l f .

To g ive some suggest ions and recommendat ions .

Scope & Purpose of the Study

This s tudy g ives one and a l l an ins ight into the market ing of

Peps i - Co la Ind ia a long with the carry ing on the bus iness of a

beverage industry f i rm.

Limitations of the Study

As the market i s wide i t i s not feas ib le to cover up ent i re

market of Ja landhar Terr i tory .

Some errors occurred, dev iat ing resu l ts f rom actua l i ty .

Data may be mis interpreted by reta i lers somet imes.

Some important po ints may be missed out .

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Market share in out lets i s dependent on severa l factors which

make market very vo lat i le such as t ime of de l ivery , da i ly wise

promot ional schemes lunched by a l l major p layers .

Some t ime the reta i lers does not reve l the t rue in format ion

and negot iate in terms of the serv ices prov ided by company.

METHODOLOGY

Pr imary data co l lect ion-

This s tudy i s descr ipt ive as wel l as exp loratory in nature

Reta i lers and the company of f i c ia l s compr ise the populat ion

of th is s tudy.

We use non-probabi l i ty sampl ing techniques i .e .

convenience, judgement and snowbal l sampl ing .

Pr imary data co l lect ion by v i s i t ing out let l i ke asset number

of v i s i , annual sa le vo lume, Peps i & coke share , s tatus of

locat ion, pur i ty& fu l lness of v i s i , rack & a i r hanger ,

ava i lab i l i ty of brand length and width in out let .

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El ic i t ing the customer i ssues and f ind ing out reasons for a

low sa les share .

Discuss ing the i ssues wi th the ADC and TDM for negot iat ing

a so lut ion.

Vis i t ing the out lets repeatedly to ensure a proper supply

and no compla ints f rom the s ide of company.

Track ing the growth in sa les share in each out let by f ind ing

out the DRINKAGE.

Secondary data co l lect ion-

Secondary data i s co l lected by internet , o f f i c ia l records ,

magaz ines etc .

Marketing Equipment Excellence in Jalandhar

Territory

Phase -1: Route riding & Market audit:-

Dur ing in i t ia l days of my S IP , the task ass ign to me was to do

route r id ing & market audi t on d i f ferent routes of d i f ferent

d is t r ibutors as prescr ibed by my company gu ide. The mot ive

behind the task ass igned to me was to make me fami l iar wi th the

d is t r ibut ion channels of Peps iCo in Ja landhar terr i tory and a lso

ana lys ing the pos i t ion of market ing equipments as to how

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appropr iate ly are they ut i l i sed, the cr i ter ia for ana lys ing reta i l

out lets as ass ign to me were d is t ingu ished as fo l lowed.

Vis i -Coolers Locat ion

Rack locat ion

Vis i Pur i ty ( i t should be 100%pure with Peps iCo product )

Rack Pur i ty ( i t should be 100%pure with Peps iCo product )

Vis i fu l lness( i t should be at least 90%ful l )

Rack fu l lness( i t should be at least 90%ful l )

Proper A i r -hanger

Proper Counter top

Proper S ignage

Market audi t are l i ke a survey which was done in order to

ana lyze the investment benef i t the company can get in future

and a lso for the purpose of gett ing a better d isp lay of the brand

in the market .

The demand for any product depends upon these 3 factors :

Avai labi l i ty

Access ib i l i ty

Qual i ty

Avai lab i l i ty means that product i s be ing of fered to the customer

in the market at the t ime he wants i t . Access ib i l i ty means the

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access ib i l i ty to the market where the product i s ava i lab le and

last but not the least i s qua l i ty . Qual i ty means the f reshness of

the product and presence of other features which make i t worth

to be bought at the pr ice of fered. These reta i l in i t iat ives a im at

a l l these 3 factors to increase the v i s ib i l i ty of the brand and

hence promote the sa le .Both space c lub and grocery c lub are

product d isp lay schemes (merchandis ing) which of fer the

customers ( shopkeepers , here) some rewards in terms of g i f t s or

d i scounts i f they d isp lay the products in the respect ive p laces

ment ioned in the ru les and norms of the scheme. These d isp lay

schemes have a certa in durat ion t i l l which the d isp lay needs to

be mainta ined in order to win g i f ts and d iscounts .

Phase 2: Visi-Excellence :-

Market ing equipments l i ke V is i -cooler , Racks , A i r hanger ,

Counter tops , f ry ing Counter , S ignage, Umbre l la , etc are very

usefu l and ef fect ive in impulse generat ion, per fect combinat ion

of these equipments and promos (posters & pa int ings) c reate

BLUE ZONE (PEPSI ZONE) in out let which create good buy ing

atmosphere in out let which can d i rect ly enhance to sa les in any

out let . PEPSICO’s s logan JO DIKHTA HAI WO BIKTA HAI! Also

resemble th is concept . The bas ic a im of the company i s to

increase the sa les as wel l the maximum ut i l i sat ion of Peps iCo’s

assets to increase sa le .

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In co ld dr ink industry cool ing equipments p lay very cruc ia l and

important ro le . They d i rect ly e f fects on sa les of products in

out lets , so organizat ion l i ke Peps ico and coke spend a lot of

budget on i t s purchase and maintenance.

In my pro ject I am major ly concern ing on V is i -coolers per fect ion

in out lets where PEPSICO’s products sa les are go ing on,

accord ing to annual sa le vo lume and f requency of purchase

cr i ter ion, in Ja landhar terr i tory .

V is i vo lume (S i ze) should be just i f ied accord ing to VPO (vo lume

per out let ) and hurd le rate which have set by company accord ing

to vo lume of v i s i , condi t ion of v i s i should very good, coolness of

bott le d i rect e f fect to sa le because customer wants ch i l led bott le

of co ld-dr inks .

In my pro ject , I am co l lect ing pr imary data f rom out lets

regard ing v i s i s i ze (vo lume) , condi t ion and check the i r annual

sa le (VPO) to make sure su i tab i l i ty of v i s i s i ze in that out let , i f

reta i ler te l l s any problem regard ing v i s i -cooler ; I g ive

in format ion to our technica l team (he lp l ine) for qu ick recovery .

At the end of day I ana lyse the data and d iscuss i t wi th

Asst . Manager-sa le & deve lopment , a f ter ana lys i s we take

dec is ion for any rep lacement (can be large or smal l accord ing to

VPO and compet i tor ’ s V is i - s i ze) and propose for new v is i . I a l so

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make model wise summery for serv ice part requi red.

The Importance of Visual Merchandising

Visua l merchandis ing today forms a cr i t i ca l e lement of reta i l ing . Bes ides

the facade and windows, which are c lear ly done up with an object ive to

at t ract passer -bys and induce walk- ins , there i s a l so in -store decor that i s

des igned to enhance the customer ’s comfort and convenience whi le

shopping and overa l l , o f fer a super ior shopping exper ience.

Consumer behav iour s tud ies have conf i rmed that the lure of a beaut i fu l ly

done up show window and a tastefu l ly decorated facade, more of ten than

not , prove i r res i s t ib le as they walk in to check out what i s on of fer . I t a l so

ensures exc lus iv i ty s ince no two stores should look a l ike . Bes ides , when

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the mood and theme of such d isp lays change at regu lar interva ls , i t makes

certa in that the s tore remains top of mind. Loya l customers have of ten

been known to anx ious ly wai t for the next d isp lay . ‘S t i ck iness ’ in reta i l

formats i s a l so ensured by the imaginat ive use of co lours , l i ght ing , space,

furn i ture and v i sua l e lements wi th regard to in -s tore d isp lays .

Once customers walk in , i t i s but imperat ive to ensure that they en joy

the i r f i r s t encounter wi th the s tore . Af ter a l l , repeat v i s i t s wi l l on ly

happen i f a customer ’s f i r s t v i s i t i s a memorable one. The log ica l

ar rangement of counters , wi th c lear passageways a l lows for easy access to

merchandise .

Rather than gett ing lost in the mazo that most large s tores are , the

customer fee ls more in contro l . Space i s a l located to var ious product

categor ies tak ing into account the number of SKUs s tocked and

she lv -es/counter space requi rements are worked out accord ing ly .

C lear passages are prov ided for products , which requi re touch and fee l . A l l

impulse purchase dr iven products are a l so c lear ly d i sp layed so that the

customers can reach them without any h indrance. A lso , i t has been

observed that when a person enters a room, the human eye moves in a Z

pattern , i .e . f rom rear le f t o f the room to r ight rear , fo l lowed by f ront le f t

o f the room to f ront r ight . Care should be taken to do up the rear le f t end

of the room in an appeal ing manner so as to gu ide the d i rect ion of v i s ion

and keep a shopper v i sua l ly interested.

A great dea l o f research has been undertaken on the impact of l ight ing on

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a customer ’s purchase behav ior . Resu l ts c lear ly ind icate that in genera l ,

s tores that are br ight ly l i t , w i th the l ights c lever ly b lending wi th the

inter iors lead to h igher customer comfort , and as such, more sa les .

Sales increase and Merchandising

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Research has shown that sales increase by as much as 12% with effective merchandizing

Availability,

Visibility,Freshness

Availability, Visibility, Freshness

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Benefit of merchandising:

attracts the attention of the consumers to Pepsi-Cola products

reminds the consumers to buy Pepsi-Cola products

reinforces Pepsi-Cola advertising & marketing strategies

Makes it convenient for consumers to buy.

Merchandising plays a key role in sales and building Brand Image, It

Generates more traffic

Drives impulse

Conversion…no. of consumers

Consumption…size of purchases

Helps consumers learn about our products

Amplifies repeat business

Drives Brand image

Adds flavor to store’s interior

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Principles of great merchandising:

Location : High traffic area / first place

Position : Uniform appearance/consistent

Space to Sales : SKU proportionate to sales

Vertical striping: bill board effect

Facings: Logo facing the consumer

POP : Clean & current

Pricing: Clear price mark / value message

Rotation & cleaning : Maintain FIFO

Innovation: warm display – make it attractive

Tracking : Track & follow-up/maintain

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Merchandising Checklist

Ensure appropriate products and packages are available

Obtain best locations for Pepsi products including, displays, visi-coolers, racks

Bundle all Pepsi brands together

Ensure bottle labels are facing consumers

Clean shelves, bottles and POP material

Get a fair share of space for Pepsi products

Remove competitors products from our crates/visi-coolers

Place POP in visible and high traffic areas

Make our pricing apparent to the consumer

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Arrange stocks in back room

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PRE-SELL Process

From bottling plant to consumer

Metal Poster Calendar

Visi-Cooler

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Importance to Customers

• Improved service• Right products every

time• Higher off-take due to

improved execution• Higher category

Importance to the Company

• Higher Volume & Profits

• Improved Asset Utilization

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PRESELL PROCESS FLOW

Against Competitor

• Improved competitive advantage

• Ability to attract higher caliber people vs. comp

• More sustainable

Importance to Consumer

• Full range availability in more outlets

• More relevant promotions

• Better value

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PSR Grading/Identifying Training Needs: Made a scale and

Graded the PSR on the Basis of that scale, and then categor iz ing

them into:

• Trainer level

• Good on most parameters (needs improvement on few).

• Needs improvement on many parameters (potent ia l case for

replacement) .

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SMART Objectives HELP

During the rout r ides with the PSR’s fol lowing work with

checkl ist was maintained by us and in the evening account by

account feedback was given to the CE fol lowed by the ADC and

TDM.

WORK *WITH Checklist                    

Conducting the Work*WITH                  

                           

Sales Development Package Distribution Executional Standards

Visi Purity Comments

             No. of SKU    

 

                       

                           

                           

Name of the PSR

Focus Brands of the Month

No of accounts done on a route

To check whether the scheme is

properly executed to the outlet

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8 Steps of the Call fallowed by

Pre Sales Executive in each outlet

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Bottling Operations

Composition of a Sugar-containing Soft Drink

Water: 86-90%

Sugar: 10-13%

CO2: 0.3-0.7%

Concentrate: 0.2-0.4%

Steps of manufacturing Per 100 ml

1. Ingredient Delivery

2. Washing and Rinsing

3. Mixing and Blending

4. Filling

5. Labeling

6. Coding

7. Inspection

8. Packaging

9. Warehousing and Delivery

Energy 196.5 kJ

Fat 0 g

Sodium 0.98 mg

Carbohydrates 11.74 g

Sugar 11.04 g

Protein 0 g

Caffeine 10 mg

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1-Ingredient Delivery

Sweetener

Team of professionals, work on selecting, auditing, sampling, testing, approving and then

authorizing the sugar suppliers and the list of such authorized suppliers with approved sugar

lots and along with the certificate of analysis are sent across to all the bottling unit for

procurement.

Secret Formula

Created in special concentrate plants, it's delivered, held and used under strict controls to

maintain its integrity and security. Each unit of concentrate is especially identifiable to allow

the "history" of each component to be researched at any stage of production, storage or use.

CO2 Formula

when delivered to the plant, carbon dioxide, or CO2, comes in cylinders for easy delivery and

storage. But what is it? In essence, it's a colorless and odorless gas that provides the "fizz" for

beverages. But it's also a by-product of breathing and used by plants and trees to produce

oxygen.

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Water

since water is a key component to all beverages, its quality is critical. And, since public water

quality varies around the world, each plant further treats the water it uses. This means that

before water is added to any of beverages; it's rigorously filtered and cleansed. Then

continuously sample the water to ensure it meet PepsiCo’s standards.

Materials

Ingredients are not the only things delivered to the plant. Other materials such as bottles,

cans, labels and packaging are also delivered. Pepsico plants in India use refillable bottles,

CANS, PET etc. in the Production Process, when bottles and cans are delivered to the plant;

they are carefully inspected to ensure that they meet exacting standards. Once these have

passed initial inspection, they move on to be washed and/or rinsed.

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2-Washing and Rinsing

To ensure quality, each bottle is washed, sanitized and rinsed before being filled.

While this sounds simple, the actual steps can differ by bottling plant. In India,

PepsiCo’s plants use refillable glass, cans or PET bottles. To ensure they meet

PepsiCo’s cleanliness standard, bottles are first hit with prerinse jets which remove

any dirt or debris. They are then soaked in a high-temperature deep cleaning

solution that removes any remaining dirt and sanitizes them. The bottles then

move to the "hydrowash" where they are washed again with a deep cleaning

pressure-spray.

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3-Mixing and BlendingH2O and Sugar

Mixing and blending begin with the steps of mixing pure water with refined sugar,

which creates simple syrup. The syrup is then measured for the correct amount of

sugar.

Secret Formula

PepsiCo’s secret formula is... still secret! That's right; the secret formula remains a

mystery to the millions of people in nearly 200 countries that enjoys refreshing

beverages everyday.

H20 and Syrup

With the syrup nearing its final state,mix it with pure water, creating the finished

uncarbonated beverage. However, the water and syrup must be mixed in right

ratio. This is done by the beverage proportioning equipment. It accurately

measures the correct ratio for each and sends this mixture to the carbonator.

CO2 Adding

Adding CO2 or carbon dioxide gas is the final touch that carbonates the

beverages. Carbon dioxide not only gives our beverages their effervescent zest,

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but it also adds to the distinctive and familiar taste everyone has come to expect

from PepsiCo’s beverages.

4-Filling

Once all the ingredients have been mixed and blended and the bottles have been

cleaned and sanitized, it ready to start filling. This is a surprisingly complex process

requiring precision at each step. To begin with, bottles must be carefully timed as

they move to the filler - synchronization is key. Once at the filler, bottles are either

held securely in place by flexible grippers or precisely placed under filling valves by

centering devices. Before the bottles can be filled, the inside of the bottles must be

pressurized. This allows for the force of gravity itself to draw the beverage into the

bottle - a process that ensures the smooth flow of liquid, with little to no foaming.

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5-Labeling

Once the bottles have been filled and capped, they move on to be labeled. A

special machine dispenses labels from large rollers, cuts them and place on the

bottles.

6-Coding

The bottle is now ready to be coded. Each one of our beverages is marked with a

special code that identifies specific information about it. The codes simply identify

the date the beverages was bottled or canned. These codes identify the date,

time, batch no. and the MRP. Product coding allows us to ensure that consumer

receive PepsiCo’s beverages at their flavorful best.

7-Inspection

PepsiCo inspect bottles at many points during the process. With refillable bottles,

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it happens they are first brought into the plant. They are also inspected after they

are washed and again after they are filled. Inspectors look for external bottle

imperfections and make sure each bottle has the right amount of beverages. Even

after filling, each plant samples bottles for analysis in its lab to ensure quality is up

to standards.

8-Packaging

Once filled beverages have passed final inspection, they are ready to be packaged

for delivery. Generally, packing can refer to everything from the unique "BOTTLE"

and "CAN" designs, to label designs, to cardboard boxes and containers, to plastic

rings.

Because the needs and tastes of consumers are so diverse, the packaging varies

depending on where the beverages are being sent.

9-Warehousing and Delivery

In order to make sure the freshest beverages possible get to customer, each

warehouse must efficiently manage the thousands of beverages cases produced

each day.

Beverage organization is key, though it's the bottle and can coding that allow for

the necessary precision. From the warehouse, we load beverages onto distinctive

trucks. Night and day, trucks are delivering PepsiCo’s refreshing beverages to

stores, soda fountains, and vending machines.

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Identifying Opportunities in an Outlet

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Re-launch of Slice in Jalandhar territory

PepsiCo India has announced the re-launch of its mango drink Slice as it plans

to take away market share in the fruit drink segment from competitors Frooti

and Maaza.

Slice has changed its logo and adopted a new tagline. The reformulated drink

with a tagline 'Absolutely Mangolicious' has roped in Katrina Kaif as the

brand ambassador because the main consumer segment of soft drinks

belongs to the age group of 5 – 40 yrs and it also popular among older person

. Specially In India where over the last few years where the juice segment is

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rapidly overpowering the soft drinks market.

"With the range of products available in the market, consumers are very

flirtatious. Even with the market share PepsiCo currently hold, PepsiCo felt

the need to re-evaluate its product,"

On 24th march 2008,Pepsico India re- launched of Slice .Slice is a very

important element of pepsico ‘s vast product portfolio ,

There many players In mango drinks segment such as Maaza, Frooti, Jumpin ,

Verka & Leh Berry and it was important for pepsico to make its active

presence felt in the market.

Slice promotion in Jalandhar territory

Slice was re-launched in Jalandhar region in yhe last week of march.This is

the perfect time to launch any new soft drink as this is the season when the

sales peak.

Slice was promoted by two ways in Jalandhar

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1)Focus on retailers

2) Focus on consumers

Focus on retailers

On the first day of the re-launch pepsico distributed only slice to its retailers.

Later they introduced better schemes for their retailers in slice to induce the

retailers to buy more and more slice for e.g. they gave away 3 bottles of slice

500 ml with every crate of pepsico soft drinks.

I was given the task to make the retailers aware about this new flavor of slice

and convince them to purchase and the sell more crates of slice .

Pepsico ‘s punchline is ‘jo dikhta hai who bikhta hai’ and we worked on this

line to improve the sales of slice. To generate impulse among the consumers

we created a lucrative environment by putting up huge displays of slice

bottles and posters in the shop.

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

Focus on Consumer

This was also done in two ways

1) Above the line promotion

2) Below the line promotion

Above the line promotion is any promotion which is related to print media.

This was done by putting up advertisements in local newspapers and giving

discount coupons in newspapers. Discount coupons of Rs. 10 were given in

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

dainik bhaskar, Punjab kesri and dainik jagran.

Below the line promotion is done by setting up kiosks or canopies. I was given

a certain area in Jalandhar where 4 canopies were set up and my task was to

supervise the promoters sitting there and then spread awareness among

the consumers by direct marketing . We gave away glasses of chilled slice to

consumers to make them aware of the new taste and impress them to buy

slice on the spot,we also provide them with discount coupons of rs 5 on

purchase of 1.2 l bottle of slice which had one day’s validity. This also

boosted the sales of slice. This was a week’s task and during this time we

reached out to around 7000 people and we had a conversion rate of 35-40%.

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Quality control Parameters

PepsiCo follows one quality standard across the globe.

PepsiCo’s soft drinks meet the local Indian standards (Health Ministry

Standards for carbonated beverages notified July 15, 2004) which compare

to the best-in-class and most stringent international standards being

followed anywhere in the world.

PepsiCo’s products comply with the Prevention of Food Adulteration Act

(PFA) directive on the use of water in the preparation of soft drinks. also

PepsiCo comply with Bureau of Indian Standards (BIS) for packaged drinking

water. PepsiCo’s use a six-stage water purification process to deliver this

standard consistently.

PepsiCo has a long-standing commitment to protecting the consumers whose

trust and confidence in its products is the bedrock of its success. In order to

ensure that consumers stay informed about the global quality of all PepsiCo

products sold in India, PepsiCo products carry a quality assurance seal on

them. The ‘One Quality Worldwide’ assurance seal appears on the entire

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range of PepsiCo’s beverages.

Water Quality: Incoming Water

Water accounts for the bulk of all beverages including colas. In other

words, the water used in soft drinks must be as safe as possible for

human consumption.

How do we ensure this?

Every water source used for PepsiCo beverages must first be

analytically qualified, which includes using accredited laboratories

to test for at least 100 parameters

At every plant, require the incoming water to be purified even

further, using a variety of processes. At a minimum, every plant in

India employs a dual back-to-back carbon filter.

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Standards for flavours and other ingredients

PepsiCo’s flavor concentrates, which make up less than 1% of

finished beverages, also are diligently controlled

Each supplier must submit written verification that each lot of

ingredient shipped to facilities meets PepsiCo’s strict

specifications

In addition to water, sugar, and flavor testing, other ingredients,

including non agricultural have been analyzed by outside

laboratories

All ingredients including flavours, emulsifiers, preservatives,

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colors, acidulants, anti-oxidants and low-calorie sweeteners are

food grade and have been approved by global food standards like

the JECFA/CODEX, USFDA and EU Scientific Committee for Foods.

All ingredients used also conform to standards laid out by the

Prevention of Food Adulteration Act under the health ministry

Sugar

Sugar accounts for 10 to 13% of a soft drink

Sugar must meet high standards of quality, which are uniform for

all of beverage plants across the globe. All of sugar manufacturers

must undergo the same supplier qualification process

To add to already high quality standards, all of PepsiCo’s plants in

India further purify sugar with hot activated carbon and fine

filtration.

Quality of sugar

At PepsiCo, sugar is bought only from approved sugar mills after a rigorous supplier

qualification process described below:

Self Assessment Perform self-assessment tool to evaluate current sugar situation and knowledge base

Paper Audit Provide supplier with Pepsi sugar specification

Get requests into from supplier:

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o Type of sugar

o Manufacturing flow chart

o Supplier's Quality process & checkpoints

Supplier submits information

Quality and Procurement review supplier data & if complete, proceed to next stage

Sample Submission

Supplier to send test sample to independent outside lab

Lab informs supplier of results

Supplier shares data with Pepsi

Review data & decide whether to proceed to the next stage

On-site Audit

Audit supplier's plant

Review their quality procedures

Determine ability to supply COC/COA

Ensure that the supplier is capable & willing to consistently comply with the Pepsi sugar specifications

Conditional Approval "Conditional" approval

Supplier can being supplying from approved refinery

Pepsi or outside lab tests first 10 deliveries

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against COA

Supplier submits sample from beginning, middle and end of session to outside lab

Pepsi/supplier share results of analyses

Full Approval

" Final approval status granted after supplier has met COA requirements on 10 separate lots of sugar and has submitted sample from beginning, middle and end of production session to an outside lab and all have been approved

Maintain Approved

Status

Supplier sends sample from beginning, middle and end of production season to outside lab for complete analysis

Lab informs supplier of results

If sample fails, Pepsi & Supplier meet to develop corrective action plan

If problem is not solved, revocation of "Approval" & shipments are halted

After sugar is received in the beverage plant, it is subjected to further

treatment to reduce impurities, colour, odour, and microbes to achieve

PepsiCo's Global Specifications. Note, however, that white milled sugar

has no standard for pesticide residue as it is a processed agri-product.

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Carbon Dioxide

The CO2 in each bottle of Pepsi surpasses that recognised for medical

applications.

We achieve this by subjecting each supplier to a rigorous supplier

qualification process, which includes a complete audit of refineries and

testing from approved international laboratories

Further, each batch carries certificates of analysis and compliance

Once the CO2 reaches a bottling plant, it undergoes further

purification

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Packaging trend in soft drink industry

The beverage industry is one among the front-liners where massive investments

are being made for expansion and technological upgradation. The packaging of

beverages carbonated and non- carbonated is a complex technological branch in

the Food Processing /Packaging industry. The traditional returnable glass bottle

has given way to newer Plastic containers as well as cartons. The current trend is

to improve the conventional containers, extend their share in the large market,

extend the shelf-life of the products, provide greater consumer convenience and

ultimately to produce economic packages.

The changing Indian scenario, with implementation of various technologies and

market Promotion activities, has changed the scope for this industry

exponentially. The Indian soft drink market is worth Rs. 21,600 million a year with

a growth of around 7%. The production of soft drink has increased from 6230

million bottles in 1999-2000 to 1,05,000 million by the year 2005.Tetrapack drink

market Is currently growing at the rate of 10% with a total market share of 48%.

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Carbonated drinks contain carbonated water, flavour, colour, sweeteners and

preservatives.CO2 Gas from pure source is dissolved in water (amount varies with

different types of beverages). A variety of ingredients like flavouring agents,

colouring agents, preservatives, artificial sweeteners, antioxidants and foaming

agents are then added. Two major deteriorative changes that occur in carbonated

drinks are the loss of carbonation and rancidification of essential flavouring oils.

The first is largely a function of the effectiveness of the package in providing a

barrier to gas permeation, while the latter can be prevented by the use of high

quality flavourings and antioxidants, and de-aerating the mix prior to carbonation.

Oxidative rancidity is reduced by the effectiveness of the package in providing a

barrier to gas permeation. Hence, the carbonated drink package requires a

container that will hold pressure and not contribute off flavours. For many years

virtually all carbonated drink soft drink were packaged in glass bottles sealed with

crown cork. In recent years, non-returnable glass bottles are giving way to

refillable bottles. These have a foam plastic protective label of paper/poly or an all

plastic shrink sleeve, as a safety measure to prevent flying of glass fragments in

case of breakage of these containers. The crown closure has been replaced with a

roll-on aluminium screw cap with tamper proof facility.

Among the metal containers, the 3-piece tinplate containers have been used since

long for the packaging of carbonated beverages. These are being replaced now by

2-piece aluminium cans. These cans retain the integrity of lacquer better than tin

cans. Vinyl, epoxy and vinyl organosolcoatings are used as lacquers for aluminium

cans. Epoxy amine provides good adhesion, colourand flexibility to the can.

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Among the plastic containers, PET bottles are the most preferred packaging

material for packaging of soft drinks.

Soft drinks have a maximum permissible level of 20ppm for citrus flavoured

beverages and 40ppm for cola while the water loss is of the order of 1%. Also, the

loss of CO2 through the wall must be allowed for. While increasing thickness will

decrease the rate of CO2permeation, The cost of the bottle, will also increase and

so a compromise has to be made. Other problems to be considered in plastic

containers are creep and elastic deformation. The polyethylene terephthalate

(PET) bottle satisfies most of the requirements for packaging of carbonated soft

drinks. Improved blow moulding techniques and bi-axial stretching have made

PET container to be pressurised due to its strength, dimensional stability and

precision. Also, they have a glasslike appearance, good transparency, lustre,

chemical inertness and unbreakability.

Advantages of PET Containers

The advantages of PET container are:

• Superior packaging to product ratio: PET container being 63% and 47% more energy efficient than glass bottles and aluminium cans respectively.

• PET bottles are 32% more energy efficient than glass bottles during delivery of 1000 gallons of soft drinks.

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•Glass bottles and Aluminium-cans generate 230% and 175% times more atmosphere ice missions compared to PET.

•PET bottles contribute 68% and 18% less solid waste by weight compared to glass and aluminium containers.

•100 kg of oil is required to produce 1000 1-litre PET bottles as against 230 kg for 1000equivalent glass bottles.

•PET bottles help in fuel saving due to their lower weight.

The resins used in PET bottles to pack carbonated drinks are of a very special

quality. The PET bottles have to be extremely strong to contain the internal

pressure of CO2 Without distortion and expansion. This is obtained by using a

resin, which has high intrinsic viscosity and lower co-polymer levels. Currently,

more than 90% of PET is consumed in food packaging with beverages/drinks

forming nearly 80%.

The packaging requirements for all types of beverages are:

1. Absolutely leak-proof and prevent contamination.

2. Protect the contents against chemical deterioration no pick up of external

flavors.

3. Be hygienic and safe.

4. Retain carbonation in the case of carbonated beverages.

5. Good aesthetic appearance.

6. Economical, easy to use and dispose.

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Agri Business Operation

PepsiCo's involvement in Indian agriculture stems from its vision of creating a

cost-effective, localised agri-base in India by leveraging its access to world class

agricultural practices. During the process of working in close cooperation with

State Governments, PepsiCo helped transform the lives of thousands of farmers

by helping them refine their farming techniques and raise farm productivity.

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PepsiCo pioneered the concept of contract farming under which the PepsiCo team

transfers agriculture technology to farmers who, in turn, produce raw material for

PepsiCo products. Pepsico give yearly average 12000 rupees(+20% annual

increment) per acre to formers (depends on location and fertility of land).lease

period are generally 10 to 15 years for horticulture purpose (for fruit plants).Till

now Jalandhar unit has done contract of 1200 acres of land with farmers, till 2010

they plan for 5000 acres.

The PepsiCo/Tropicana and PAGREXCO (Punjab Agri Export Corporation) Citrus

Development Programme has emerged as one of the most successful models of

public-private partnerships in Indian agri-business.PepsiCo supported the Punjab

Government on the citrus project which served to improve the quality of life for

thousands of farmers and also created a localised supply base for citrus juice

under Tropicana, the world's largest juice brand. PepsiCo was also interested in

exploring the export potential of the local produce. The project, signed in 2002,

served to deepen PepsiCo's involvement in Punjab agriculture which started in

1989. It also marked a step forward in fulfilling its commitment to improving the

quality of life for thousands of farmers.

Today, farmers can choose from 16 varieties of rootstock and 32 varieties of

citrus. This is one of the largest collections at a commercial nursery, creating a

world-class source of planting material for Punjab's farmers. This is a mutually

beneficial situation for PepsiCo and the farmers of Punjab.

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PepsiCo also provided technical support and expertise to the Punjab Government

to set up two fruit processing plants in Hoshiarpur and Abohar which are prime

citrus growing areas in Punjab. Each plant is capable of processing multiple fruits,

offering an advantaged supply chain for fruit juice concentrates. Each Plant

contains cold stores with a capacity of 2400 tons for finished products. Trials have

been carried out with Kinnow, Musambi, Tomatoes, Mangoes, Melons and

Strawberries.

To support the initiative PepsiCo set up a 27-acre research and demonstration

farm in Punjab to conduct farm trials of new varieties of tomato, potato and other

crops.

The programme, which includes seed production, has successfully evaluated the

following crops:

several varieties of basmati rice more than 200 varieties and hybrids of

chilli

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25 varieties and hybrids of corn

more than 60 varieties of peanut

more than 100 varieties and hybrids of tomato.

Additionally, the development of new tomato varieties has helped increase total

annual production of tomato varieties from 28,000 tons to over 200,000 tons in

Punjab. Yields have more than tripled from 16 tons to 54 tons per hectare.

Under the programme, 6 high-quality, high-yield potato varieties have also been

introduced to Indian farmers. These new potato seeds have helped to increase

farm income and enabled PepsiCo to procure world class chip-grade potatoes for

its Frito Lay snacks division. The company has partnered with more than 15,000

farmers working in over 10,000 acres across Punjab, U.P., Karnataka, Jharkand

West Bengal and Maharashtra for the supply of potatoes.

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CONCLUSION

The customer i s not brand loya l espec ia l ly in summers when the

look out i s for ch i l led ava i lab i l i ty of product . Fo l lowing po ints

have to be kept in the mind

Importance of the re lat ionsh ip wi th the out let :

• Spending T ime

• Regular i ty

• Understanding and Trust

Importance of merchandis ing .

• Product

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• Vis ib i l i ty Factor

• Impulse Purchase

Timing of RA reach ing an out let

Sa les-Cash

• 8 Steps to the ca l l

Knowledge about Compet i t ion

• Pr ic ing

• Discounts

• Schemes

• Serv ice T iming

• Serv ice Frequency

• In s tore Competence

As of now there i s cut - throat compet i t ion between Peps i and Coke. In th is k ind of r iva l ry where the launch of a new product spans a war for the throne, the sa les increase when the out let i s wel l merchandised, the product i s ch i l led and there i s ava i lab i l i ty of a l l SKU’S and v ice versa .

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

Recommendations

Regular v i s i t s by the company of f i c ia l s

should be made to the market , to c lear the b lurred market

p ic ture . Th is wi l l a l so he lp them to know and so lve the problems

and f i l l the gaps f ru i t fu l ly wi th immediate success .

The company should g ive reta i lers some

incent ives for Creat ing B lue Zone Ef fect as i s done by Hutch,

A i r te l , Nest le , ITC and P&G etc for the i r products .

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Marketing equipment excellence in Jalandhar territory for PepsiCo India

REFERENCE

www.peps ico .com

www.peps i ind ia .org

www.google .co . in

www.wik ipedia .com

Kot ler Ph i l ip , Market ing Management

Page 107: Pepsico Limited

Marketing equipment excellence in Jalandhar territory for PepsiCo India