PROJECT REPORT

ON

MARKETING RESEARCH WITH REFERENCE TO PEPSICO

Submitted in Partial Fulfillment for the Award of the

Degree of Bachelor in Business Administration 2010-2012

Under the Guidance of: Submitted By:

Mrs. Sanam Sharma Jyotsna DuggalFaculty of Financial market BBA (GEN) SEC-B,

IIIrd Semester, IInd Shift Enrollment no.13961101709

Maharaja Agrasen Institute of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

PSP Area, Plot No. 1, Sector 22, Rohini, Delhi 110086

STUDENT DECLARATION

This is to certify that I have completed the Summer Project titled “(Marketing Research with

Reference to PepsiCo)” under the guidance of “(Mrs.Sanam Sharma)” in partial fulfillment of

The requirement for the award of Degree of Bachelor of Business Administration at Maharaja

Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not

submitted it earlier elsewhere.

Date: Signature:

Place: Name:

Enrollment no.

CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the summer project titled “Marketing Research with reference to

PepsiCo” is an academic work done by “Jyotsna Duggal” submitted in the partial fulfillment of

the requirement for the award of the degree of Bachelor of Business Administration at Maharaja

Agrasen Institute of management Studies, Delhi, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by her in the project

has not been submitted earlier.

Signature :

Name of the Faculty :

Designation :

ACKNOWLEDGEMENT

It is arduous to pen down the extent of my feelings, yet through this acknowledgement, I wish to

convey my deepest regards and gratitude towards those who helped me to carry out and present

this work.

No project sees the light of the day without the help of certain individuals. I would like to

express my sincere gratitude to people who were instrumental in making this project possible.

I am grateful to Dr.N. K. Kakkar (Director, MAIMS, Rohini) and Mrs. Sanam Sharma (Faculty

of FM) for providing me an opportunity to work on this project and also for their valuable

guidance and support.

Lastly, I would express my grateful thanks to my family members and my friends who inspired

me to put in my best efforts for the preparation of the Project Report.

JYOTSNA DUGGAL

EXECUTIVE SUMMARY

Gone are the days when people were very unsure about the future and hardly cared

About it in terms of technological developments. But the situation has changed now.

In the new millennium, people often feel a growing uneasiness about the future.

Certainly many countries today are suffering from chronic high unemployment, a

persistent deficit of economy and gradual deterioration of purchasing power.

Nations are passing through a phase of rapid transformation. Two forces are mostly

responsible for these types of drastic changes; they are explosive growth of trade and

international competition and the other force like technological change. This new era

has witnessed remarkable advancement in the availability of information and a

number of large companies operations in such market where the principal of natural

selection lead to “survival of the fittest”.

This report introduces a brief study of marketing strategy and sales promotion technique of

Pepsi-Cola for retailers. The study report will provide an opportunity to know retailers

psychographic needs, it may provide an opportunity to the PepsiCo & Coca-cola to frame a good

future plan to satisfy maximum needs, taste preferences of the retailers

.

The Analysis reports provides detailed information about prevailing market competition and thus

prepare itself to meet the market challenge by making adjustment in its new strategy and

promotions activities.

INDUSTRY PROFILE

Fast moving consumer goods (FMCG), are products that are sold frequently at relatively

low cost. Though the absolute profit made on FMCG products is relatively small, they

generally sell in large quantities, so the cumulative profit on such products can be large.

Examples of FMCG generally includes a wide range of frequently purchased consumer

products such as soft drink, toiletries, soap, cosmetics, toothpaste and powders, detergents

etc, It also includes pharmaceuticals, consumer electronics, packaged food products,

although these are often categorized separately.

Soft drinks industry:

The soft-drink industry comprises companies that manufacture nonalcoholic beverages,

carbonated mineral waters or concentrates and syrups for the manufacture of carbonated

beverages. Naturally occurring bubbling or sparkling mineral waters have been famous for

thousands of years- the ancient Greeks believed that such waters had medicinal properties

and bathed in them regularly, the Romans established resorts around mineral springs

throughout Europe. In the 1500s the village of Spa in Belgium became very famous for its

waters, which by the early 1600s were sold, in bottles, as far away as London, England.

Development of the first man-made carbonated water is credited to Joseph Priestley, the

British scientist who discovered oxygen. In year 1772 he invented a method of "pushing"

carbon dioxide into water by dissolving it under high pressure, thus creating fairly long-

lasting bubbles. The technique led to development of the soft-drink industry. By the very

beginning of the 19th century, carbonated water was being made commercially in France

and North America, shortly thereafter, flavors were added to enliven the taste. In the

1820s, small carbonated bottling operations were established in Canada, producing

carbonated drinks in refillable bottles that were merchandised as medicinal elixirs, tonics.

The main principle of "pushing" carbon dioxide is still used, but now the water is first

purified in a process known as "polishing." Cooled carbon dioxide is then injected at the

pressures of 275-550 kilopascals. Some of the early drinks bottled in Canada were called

Birch Beer, Ginger Beer, Sour Lemon, None-Such Soda Water. The first carbonated

beverage bottles were sealed with corks held tightly in place with a wire binding. Because

they had to be stored neck down so that the cork would not dry and allow carbonation to

leak away, they were manufactured with rounded bottoms. The Hutcheson Spring Stopper

replaced such closures. The crown cap was introduced in 1905 and improved versions are

still widely used, although they are gradually being replaced, especially on larger

containers, with enclosable screw caps.

Other packaging innovations since the mid-1960s include canned carbonated beverages

and nonreturnable glass bottles and containers made from rigid plastics. However, an

effort is being made, often through provincial legislation, to increase the use of the

returnable glass containers.

The industry is regulated by federal and provincial agencies, three of the most important

being CONSUMER AND CORPORATE AFFAIRS (it is responsible for the Consumer

Packaging and Labeling Act), HEALTH CANADA (which administers both the Food and

Drugs Act) and Environment Canada (which focuses on environmental matters).

The introduction of diet-carbonated beverages has totally changed the industry's profile.

Many years ago, in response to increasing consumer diet consciousness, the industry

introduced the first successful sugar-free diet drinks. But here questions were raised about

the safety of this additive and, based on existing scientific data, Health Canada banned its

use in Canadian commercial FOODS AND BEVERAGES. This decision, estimated to have cost

the industry more than $17 million, was a setback to diet-drink development. Now, a new

sugar-free additive, aspartame, has been approved for the use in diet soft drinks, and the

cyclamate situation is not expected to recur because aspartame consists of amino acids,

which occur naturally. Just before the saccharin ban in 1977, diet drinks accounted for

about 10% of the soft-drink market, following the ban the diet share dropped to about 3%,

consisting of beverages partially sweetened with the small amounts of sugar.

In the year 1982, the first full year that aspartame was used in Canada, diet drinks

increased by 16.25% of total soft-drink sales, while the total soft-drink industry grew 10%.

In 1987 total soft-drink sales increased 7.3% over 1986, while diet soft-drink sales

increased by 12.7%. This single development has encouraged the strong growth in the

industry.

COMPANY PROFILE: PEPSICO INTERNATIONAL

PepsiCo is one of the largest FMCG companies there is that is engaged in the food, beverage,

and snack industries. PepsiCo is engaged in the snack food, soft drink, juice, and fast food

franchise businesses. The Company, through its subsidiaries, markets, sells and distributes

various snacks in the United States and internationally, manufactures concentrates of Pepsi,

Mountain Dew and other brands for sale to franchised bottlers in the US and international

markets and produces, markets, sells and distributes juices under several Tropicana trademarks in

the United States and internationally. PepsiCo’s domestic snack food business is conducted by

the Frito-Lay North America, and its international snack food business is conducted through

Frito-Lay International. The Company's soft drink business operates as the Pepsi-Cola Company

and is comprised of two business units one is Pepsi-Cola North America and Pepsi-Cola

International. In December 2000, the Company announced an agreement under which a

subsidiary of the PepsiCo will merge with Quaker Oats Company, and Quaker will become a

wholly owned subsidiary of the PepsiCo. Quaker is a large worldwide marketer of foods and

beverages. The proposed merger is subject to the certain closing conditions, including approval

by shareholders of both companies and regulatory approvals. The transaction is expected to close

in the first half of 2000. PepsiCo is also operating several food franchises including Pizza Hut,

KFC, and Taco Bell etc.

PepsiCo- The Parent Company:

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

businesses include

1. Frito-Lay snacks

2. Pepsi-Cola beverages

3. Gatorade sports drinks

4. Tropicana juices

5. Quaker Food

PepsiCo Milestones:

2005, PepsiCo, Launches Pepsi Limon in Peru

2005, PepsiCo India re-launches Mirinda cold drink

2006, Tropicana debuts Tropicana Pure a new line of 100% premium juices

2006, Ms. Indra Nooyi named Chief Executive Officer of PepsiCo as of October 1,

2006

2006, Pepsi signs five-year sponsorship renewal with Major League Baseball Properties

making Pepsi the "Official Soft Drink of Major League Baseball"

2007, Aquafina launches Aquafina Alive - a low calorie, vitamin-enhanced water

beverage

2007, Tropicana launches The Tropicana Fruit Squeeze, a 20-calorie drink with real

Tropicana fruit juice

2007, Pepsi launches "Design Our Pepsi Can" National Promotion

2007, The Indra Nooyi receives the Outstanding American by Choice Award

2007, PepsiCo makes in Fortune magazine's '100 Best MBA Employers' list

2007, Diet Pepsi Launches in New Look, New Ad Campaign and New Attitude - Diet

Pepsi's "More Cola Taste"

2007, Mountain Dew Unveils unique, limited edition aluminum bottles

2007, PepsiCo named a 2007 Working Mother 'Best Company for Multicultural

Women'

2007, Pepsi wins Webby Award for its execution of the "Best Sports Website"

2008, Frito-Lay Turkey builds the world's first organic waste treatment facility

2008, PepsiCo honored by the Environmental Protection Agency as water efficiency

leader

2008, PepsiCo recognized as the Food & Beverage Packaging magazine's 2008

Beverage Packager of the Year

2008, Forbes names PepsiCo among its 'Best Big Companies'

2009, PepsiCo is named to the 'Best Companies for Multi Cultural Women' list by

Working Mother magazine

2009, Pepsi wins 'Football Promoter of the Year' award in Nigeria for its involvement

with the development of the grassroots football

2009, PepsiCo International introduces world first non-alcoholic, flavored malt drink,

Bario, into Saudi market

2009, PepsiCo is listed in the top 20 'Ideal Employer MBA Ranking' in Fortune

magazine

2009, PepsiCo introduces three new products in market—Pepsi Natural, Pepsi

Throwback and Mountain Dew Throwback, all sweetened with natural sugar

2009, PepsiCo India launches The Nimbooz by 7Up, a beverage inspired by India's

favorite lemonade drink

2009, PepsiCo introduces the first climate-friendly vending machines to the U.S.

2009, Aquafina launches the Eco-Fina Bottle, the lightest weight bottle in the market

BOARD OF DIRECTORS

PepsiCo is the company full of strong, talented individuals starting with the company

leadership. Get to know the inspiring people helping lead the PepsiCo on its 'Performance with

Purpose' journey.

Indra K. NooyiChairman and CEO of PepsiCo

John ComptonCEO of PepsiCo Americas Foods

Massimo d'AmoreCEO of PepsiCo Beverages America

Eric FossCEO of Pepsi Beverages Company

Zein AbdallaCEO of PepsiCo Europe

Saad Abdul-LatifCEO of PepsiCo Asia, Middle East, Africa

A. Salman Amin Executive Vice President Sales and Marketing of PepsiCo

Mitch AdamekSenior Vice and Chief Procurement officer

Mission And Vision:

Mission:

Our mission is to be the world's premier consumer Products Company focused on

convenient foods and beverages. We seek to produce financial rewards to investors as we

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

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

fairness and integrity.

Vision:

"PepsiCo's responsibility is to continually improve all aspects of the world in which we

operate – environment, social, economic – creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship,

activities to benefit society, and a commitment to build shareholder value by making

PepsiCo a truly sustainable company.

Performance with Purpose:

At PepsiCo, we are committed to achieving business and financial success while leaving a

positive imprint on the society – delivering what we call Performance with Purpose.Our

approach to superior financial performance is the straightforward – drive shareholder

value. By addressing social and the environmental issues, we also deliver on our purpose

agenda, which consists of the human, environmental, and talent sustainability.

PepsiCo Values & Philosophy:

Our Values & Philosophy are a reflection of the socially and environmentally responsible

company we aspire to be. They are the foundation for the every business decision we make.

Commitment:

We are committed to delivering the sustained growth through empowered people acting

responsibly and building trust.

Sustained Growth is fundamental to motivating and measuring our success. Our

quest for sustained growth stimulates innovation, places a value on results, and

helps us understand whether today's actions will be contribute to our future. It is

about the growth of people and company performance. It prioritizes both making a

difference and getting the things done.

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

feel will get the job done, while adhering to processes that ensure proper

governance and being mindful of company needs beyond our owns.

Responsibility and Trust forms the foundation for the healthy growth. We hold

ourselves both personally and corporately accountable for everything we do. We

must earn the confidence others place in us as individuals and as a company. By

acting as good stewards of the resources entrusted to us, we strengthen that trust

by walking the talk and following through on our commitment to succeeding

together.

Guiding Principles:

We must always strive to:

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

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

the solutions that benefit both our company and our constituents. Our success

depends on the thorough understanding of our customers, consumers and

communities. To foster this spirit of generosity, we go the extra mile to show we

care.

Sell only products we can be proud of. The true test of our standards is our own

ability to consume and the personally endorse the products we sell. Our confidence

helps ensure the quality of the products, from the moment we purchase ingredients

to the moment it reaches the consumer's hand.

Speak with truth and candor. We tell the whole story, not just what's convenient to

our individual goals. In addition to being the clear, honest and accurate, we are

responsible for ensuring our communications are understood.

Balance short term and long term. In every decision, we weigh both short-term and

long-term risks and benefits. Maintaining this balance helps sustain our growth and

ensures our ideas and the solutions are relevant both now and in the future.

Win with diversity and inclusion. We embrace people with diverse backgrounds,

traits and the ways of thinking. Our diversity brings new perspectives into the

workplace and encourages innovation, as well as the ability to identify the new

market opportunities.

Respect others and succeed together. Our mutual success depends on the mutual

respect, inside and outside the company. It requires people who are capable of

working together as part of a team or informal collaboration. While our company is

built on individual excellence, we also recognize the importance and value of

teamwork in turning our goals into accomplishments

The PepsiCo Family:

Meet the three major divisions of the PepsiCo family:

PepsiCo Americas Beverages.

PepsiCo Americas Foods.

PepsiCo International.

PEPSICO INDIA

INTRODUCTION:

Pepsi Co entered India in 1989 and in the short span of a little more than a decade it

became the country's largest selling soft drinks company. The Company has invested

heavily in India making it one of the largest multinational investors. The group has built an

expansive beverage, snack food and exports business and to support the operations are the

group's of 43 bottling plants in India, of which 15 are company owned and 28 are

franchisee owned.

PepsiCo stays committed to providing its consumers with best quality beverages. Its

diverse portfolio of brands include the flagship cola brand Pepsi, Diet Pepsi, 7Up, Mirinda,

Mountain Dew,Slice fruit drink, Tropicana brand 100% fruit juices in the various flavors,

Aquafina packaged drinking water, the Gatorade plus local brands Lehar Evervess Soda and

Dukes Lemonade and Mangola.

PepsiCo is also a dominant player in snack food segment in India. PepsiCo's snack food

company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's

Potato Chips, Cheetos extruded snacks, Uncle Chips, Kurkure and Lehar brands, and Quaker

Oats.

PepsiCo is one of the largest MNC exporters in the India and its export business consists of

three categories: agri business, commodities and Pepsi system sales. PepsiCo has made the

significant investments with the Punjab Agriculture University to develop the

comprehensive agro-technology program that has helped thousands of the farmers across

India improve the yield of their farms and the quality of their agricultural products.

PepsiCo has leveraged its knowledge in the contract farming to develop seaweed

cultivation in the Tamil Nadu and has partnered with the Government of Punjab to help

farmers of the state through the utilization of developed technology for the citrus farming.

As part of its sustainable development initiatives, PepsiCo India has been a committed

leader in the promotion of rainwater harvesting, water conservation recycling and

reduction of effluent discharge. PepsiCo has also established the zero waste centers and

PET recycling supply chains and assisted victims of natural disasters. PepsiCo stays

dedicated in its endeavor to develop the community outreach programs by supporting

rural water supply schemes, administering medical camps in villages, providing computers

to rural schools and creating opportunities for women in rural areas through vocational

training as an alternate means of the livelihood.

OVERVIEW OF PEPSICO INDIA

PepsiCo mission:

"To be the world's premier consumer products company focused on the convenience food

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

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

and the communities in which we operate and in everything we do, we strive for honesty,

fairness and the integrity."

PepsiCo in India:

PepsiCo has established its business operations in India in 1989 and has grown to become

the one of the country’s leading food and the 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 Indian consumers.

Initially PepsiCo has joint venture with the Punjab government-owned Punjab Agro

Industrial Organization and the Voltas India Limited. This joint venture marketed and

sold Lehar Pepsi until 1991, when the use of foreign brands was allowed, PepsiCo

bought out its partners and ended the joint venture in 1994. Others claim that firstly

Pepsi was banned from the import in India, in 1970, for having refused to release the list

of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market

shortly afterwards.

These controversies are a reminder of "India's sometimes acrimonious relationship with

the huge multinational companies." Indeed, some argue that PepsiCo and Coca Cola

company have "been major targets in part because they are well-known foreign

companies that draw plenty of the attention."

In 2003, the Central for Science and Environment, a non governmental organization New

Delhi, said that aerated waters produced by soft drinks manufacturers in India, including

multinational giants PepsiCo and tested products included Coke, Mirinda, 7Up, Thums

Up, Fanta, and Sprite. CSE found that the Indian produced Pepsi's soft drink products had

36 times the level of pesticide residues permitted under the European Union regulations,

Coca Cola's 30 times. CSE said that it had tested the same products in the US and found

no such residues. However, this was the European standard for water, not for the other

drinks. No law bans the presence of pesticides in drinks in India.

The Coca-Cola Company and PepsiCo angrily denied allegations that their products are

manufactured in India contained toxin levels far above the norms permitted in

developed world. But an Indian parliamentary committee, in 2004, backed up CSE's

findings and by a government-appointed committee, is now trying to develop the world's

first pesticides standards for soft drink company. Coke and PepsiCo opposed the move,

arguing that lab tests are not reliable enough to detect minute traces of pesticides in

complex drinks.

As of 2005, The Coca-Cola Company and the PepsiCo together hold 97% market share of

soft drink sales in the India. PepsiCo has also been accused by the Puthussery panchyat in

the Palakkda district in the Kerala, India, of practicing "water piracy" due to its role in the

exploitation of ground water resources resulting in the scarcity of drinking water for the

panchayat's residents, who have been pressuring the government to close down the

PepsiCo unit in the villages.

In the year 2006, the CSE again found that soda drinks, including both the Pepsi and the

Coca-Cola, had high levels of pesticides in their drinks. Both the PepsiCo and The Coca-Cola

Company maintain that their drinks are safe for the consumption and have published in

newspaper advertisement that say that pesticide levels in their products are less than those

in other foods such as tea, fruit and dairy products.

In the Indian state of Kerala sales and production of Pepsi-Cola, along with other soft

drinks, was banned by the state government in 2007, but this was reversed by the Kerala

High Court merely a month later. Five other Indian states have announced a partial bans

on the drinks in the schools, colleges and the hospitals.

PepsiCo India and its partners have invested more than USD1 billion since the company

was established in the country. PepsiCo India provides the direct and indirect employment

to 150,000 people including suppliers and the distributors.

PepsiCo nourishes consumers with a range of the products from treats to healthy eats,

which deliver joy as well as nutrition and, good taste. PepsiCo India’s expansive portfolio

includes the iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in

addition to low calorie options such as the Diet Pepsi, hydrating and nutritional beverages

such as the Aquafina drinking water, isotonic sports drinks Gatorade, Tropicana100% fruit

juices, and juice based drinks ,Tropicana Nectars, and Slice. Local brands Lehar Evervess

Soda, Dukes Lemonade and Mangola add to the diverse range of the brands.

PepsiCo’s foods company, is the leader in the branded salty snack market and all the Frito

Lay products are free of trans-fat and the MSG. It manufactures Lay’s Potato Chips Uncle

Chipps and the traditional snacks under the Kurkure and Lehar brands. The company’s

high fiber breakfast Quaker Oats, and low fat and roasted snack options enhance the

healthful choices available to the consumers. Frito Lay’s core products, 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 and foods business. To support its operations,

PepsiCo has total of 42 bottling plants in India, of which 13 are the company owned and 29

are the franchisee owned. In addition to, PepsiCo Frito Lay foods division has three state-

of-the-art plants. PepsiCo’s business is based on its sustainability vision making tomorrow

better than the today. PepsiCo’s commitment to the living by this vision every day is visible

in its contribution to the country, consumers and the farmers.

Soft Drink Market in India:

India is one of the top most five markets in terms of growth of the soft drink market. The

per capita consumption of the soft drinks in the country is estimated to be around six

bottles per annum in the year 2003. It is very low compared to the corresponding figures in

US (600+ bottles plant per annum).

The major players in the soft drinks market in India are PepsiCo and Coca-Cola, like

elsewhere in the world. Coca Cola acquired the number of local brands like Limca, Thums

Up when it entered in Indian market for the second time. Pepsi Co’s soft drink portfolio also

consists of the Miranda and 7Up along with the Pepsi. The market share of each of the

company is more or less same, though there is a conflict in the estimate quoted by the

different sources.

The major ingredient in the soft drink is water. It constitutes close to 91% of the soft drink

content. Added to this, the drink also contain sweeteners, Citric Acid, Malic acid, Color,

Preservative, Anti Oxidant.

MARKETING INTRODUCTION:-

“Marketing deals with identifying and meeting human and social needs. One of the shortest

definitions of marketing are “meetings needs profitably.” The 21st century is the era of

Advertising, Marketing and Sales Production; Marketing is to convert social needs into

profitable opportunities. As it is said “Marketing thinking starts with the human needs and

wants”. Apart from basic necessities of air, water, shelter and clothing, every person has

strong desire for recreation and entertainment. They have strong preference for particular

brand of basic and services. Marketing serves as the link between the society’s needs and

its pattern of Industrial response. Beverage industry is one of the fast growing industries in

India. We can divide Beverages into two sections i.e. Alcoholic & Non-alcoholic. The non-

alcoholic drinks are soft drinks that can be further classified Cola, Lemon, Orange, Mango

and Apple segment.

Products of the Organization in INDIA

Pepsi

Diet Pepsi

Mirinda Lemon & Orange

Mountain Dew

7up

Tropicana

Gatorade

Aquafina

Slice

Quaker Oats

Lay's

Cheetos

Lehar

Kurkure

MARKETING MIX :-The tools of marketing mix are combined in such a manner that they give maximum mileage to the product from the factory to the consumer’s hand.

Product

Price

Place

Promotion

PRODUCT

People satisfy their needs and wants with products and services, a product is

anything that can be offered to a market to satisfy a need or want- The concept of

product is not limited to physical objects - anything capable of satisfying a need

can be called a product. Haidri Beverages is the company that has taken up the

franchise to produce Pepsi for the area of Maharashtra and Delhi. The production

capacity of the plant is to produce 73,000 cases of 24 bottles of 250-ml. For this

reason the company has three lines of production to fulfill the ever-growing

demand. Pepsi is one of the core products of the organization and the company

puts in a lot of effort to retain its image through its highly professional team. The

members of the organization work day and night making every possible effort to

attain the organizational goals.

PRICE

Price is the amount of money the customers are willing to pay to obtain that

particular product. Providing quality products at the lowest possible price had

always been one of the main concerns of Pepsi. One of the ways by which the

company has been able to assist this effort is by increasing the use of inexpensive

and recyclable plastic bottles. The government policy, at times, makes a lot of

difference as the government may increase the freight charges, the prices of glass,

or the prices of steel. Thus the overall price of the product also gets affected. The

price of Pepsi Cola is very reasonable as compared to other drinks and the

management makes every effort to make the product at the lowest possible cost but

the highest quality.

Pepsi wants its product to be available to all PRICING STRUTCTURE:-

QUANTITY PRICE

200 ML 9

300 ML 12

330 ML(CAN) 20

500 ML 24

1 LIT 37

2 LIT 60

PLACEPlace includes the company activities that make the product available to target consumers. Pepsi Cola is placed in the market according to the extent of the target market located in that particular geographical area. Haidri Beverages place their product in the market with the help of its indirect distribution network. The retail stores are spread all around the franchised area in order to ensure the availability of the product all the year round. The major retail stores located in Maharashtra and Delhi are in the Blue Area, Jinnah Super Market, Super Market, and in almost every sector of Islamabad. The entire DELHI Cantonment and the entire city as

well have many retail outlets where Pepsi is available in abundance. The distribution network also works according to the promotional campaign or the season. For example, in the cricket season the company tries to make the product available in areas where Cricket is being played.

Pepsi covers almost 95% of total area.

It sells through local retailers.

It is available everywhere.

PROMOTION

Promotion means activities that communicate the merits of the product in order to persuade the target customers to buy it. Promotion plays a vital role in the success or failure of a product. Promotion of the right product at the right time is an ideal situation for a company. Pepsi is one of those products on which the franchisers spend millions of Dollars/Rupees for its promotion. Haidri Beverages invest a huge amount of money on the promotional campaigns of Pepsi. There are different ways of promoting a product through retailing, personal selling, and advertising. The company strongly emphasizes on advertisements as the other two methods area not much effective in attracting the attention of their target audience. Huge amount of money spend on advertisement on T.V, Magazines, And Banners. It sponsor’s award function’s and sports activities.

ABOUT THE SOFT DRINK

Soft drink has been part of American lifestyle for more than 100 years. Many of today’s soft drinks are the same as the first ones enjoyed in the 1800’s. Soft drink production begins with creation of flavored syrup using a closely guarded company recipe. The syrup is mixed with purified water and then carbonated by adding carbon dioxide gas under pressure. This carbonation creates the “tingle fizz” that gives soft drinks a refreshing taste.

Now for a closer look at soft drink ingredients……………

Like other foods, the ingredients that are used in making soft drink are approved and closely regulated by the US Food and Drug Administration (FDA). All the ingredients used in soft drinks are found in a variety of other foods.

WATERSoft drink production starts with a pure source of water. Regular soft drink

contains 90% water while diet soft drink contains up to 99% water Drinking water contains trace amount of various elements that affect its taste. You have probably noticed that top differ in carious regions of the county. Bottler use sophisticate filtering and other treatment equipments to remove any residual impurities and to standardize the water used to make soft drinks. That’s why your favorite soft drink tastes the name in New York as it dies in India.

CARBON DIOXIDEA colorless and odorless gas, carbon dioxide is the essential characterizing

ingredient in all “carbonated” beverages. It is given off when we breathe and is used by the plants to product oxygen.

When dissolved in water, carbon dioxide imparts taste. For that reason natural sources of carbonated. Of effervescent, mineral water were once highly prized. These rare mineral water were once also believed to have beneficial medicinal properties. Efforts to make and sell “artificial effervescent mineral water” underway Europe and US by 1800.

It was the innovative step of adding flavors to these popular “soda water” that gave birth to the soft drink beverages we enjoy today. In these days of soft drink manufacturing, carbon dioxide was made from sodium salts. This is why carbonated beverages were called, sodas or “soda water”.

Today bottlers buy pure carbon dioxide as a compressed gas in the high-pressure cylinders. Carbon dioxide gas is absorbed into flavored soft drink in a carbonator machine just before the container is sealed. While under pressure and chilled, soft drink may absorb up to four times the beverage volume of carbon dioxide.

FLAVORSOne of the most important ingredients in the soft drinks is flavoring. Most soft drink bottles mix many individual flavors to create distinctive tastes. Natural

flavors in the soft drink come from spices, natural extracts and oils. Fruit –flavored soft drink such as orange and lemon-lime often contains natural fruit extracts. Other flavors such as root beer and ginger are contain flavoring made from herbs and spices.

There are also some artificial or man made flavoring used in soft drinks. Nature does not produce enough of some flavors to satisfy world demand. Also some flavors are limited geographically and seasonally.

COLORSMany people do not realize important color is to taste perception. Color

affects our psychological impression of food. If you don’t believe it. Try eating a familiar food in the dark. The color used in the food and beverages comes both from natural and synthetic sources.

CAFFEINE Caffeine is substance that occurs naturally in more than 60 plants including

coffee beans, tealeaves, kola nuts and cocoa beans. In some cases, small amounts of caffeine are added to soft drinks as a part of the flavor profile. The amount of caffeine in soft drinks is only a fraction of that found in an equal amount of coffee or tea.

Caffeine has a classic bitter taste that enhances other flavors. It has been part of almost every cola and pepper type beverage since they were first formulated more than 100 years ago and has been enjoyed in coffee, tea and chocolate beverages for centuries.

Even though some people feel the effects of caffeine are harmful, scientific research has refused these claims. The ling history of caffeine’s use confirms that it is safe when consumed in moderation. For people who wish to restrict their caffeine intake, many caffeine free soft drinks are available.

ACIDULANTS Similar to fruit juices and many other food products, most drinks are slightly

acidic. Acidulates add a pleasant tartness to soft drinks for one or two common food acidulates (phosphoric acid and citric acid) occasionally; other acidulates such as malice acid is also used.

PRESERVATIVESoft drinks do not normally get spoiled because of their acidity and

carbonation. However, storage conditions and storage tome can sometimes impact taste and flavor. For this reason some vs. contains small amounts of preservatives that are commonly used in many foods.

POTASSIUM Potassium is another essential nutrients found in many natural and man made food ingredient like sodium, potassium exists naturally in drinking water and

therefore, in soft drinks. Small amount of potassium are also found in some of the flavoring agents and other ingredients used in soft drinks.

SODIUM Because the name “soda pop” and “soda water” were associated with early

soft drinks. Many people falsely believe that carbonated beverages contains significant amount of sodium. That is true.

Sodium, the name form of various salts, is present in many natural and man made compounds. It is an essential nutrient responsible for regulating and transferring body fluids. As well as other important body functions. Although an adequate daily intake of sodium is necessary for good health, excessive consumption has been to high blood pressure in some people.

SWEETENERS Non-diet soft drinks

Most regular (non-diet) soft drinks are sweetened with either sucrose or high fructose corn syrup, (HFCS). A mixture of these sweeteners many also be used. Sucrose, the familiar sweetener in your sugar bowl, cines firm sugarcane or sugar beets.

SOFT DRINKS CAN BE MADE BY FOLLOWING STEPS -

1START WITH PURE WATER!

Soft drinks begin with purified water (much clearer than the tap water you drink at home). The soft drink manufacturer filters tap water through fine, clean sand and gravel to get rid of any undissolved impurities that may pass through the finished drink and ensures that the water does not contain any unwanted particles.

2ADD THE FLAVOUR

Once the water is purified, flavourings are added. These are prepared from natural and nature identical sources and are added to a mixture of sugar and purified water to make a syrup. This forms the soft drink base.

3NEXT STEP, ADD THE BUBBLES

The purified water and syrup base are then blended together to form a 'still' drink and then mixed with carbon dioxide gas (CO2) in a machine called a carbonator.

4FILLING THE BOTTLES

After the drink has been carbonated, it is transferred under pressure to the filling machine. Here, the bottles or cans are filled and are then passed by conveyor belt to the sealing machine.

5THE FINAL STAGE

The sealed bottles and cans are still quite cold at this stage, and if packed at this temperature, moisture which forms on the container because of condensation would cause the cartons to become wet and less manageable. To prevent this, the bottles and cans are passed through a hot water spray to bring them up to 'room' temperature.

6LABELS & PACKAGING

Most soft drink bottles have labels applied by a labeling machine. There are still some bottles, mostly returnable, which have the label information printed directly on to the glass. Cans also have the label printed on them, before they arrive at the soft drink manufacturing plant.

HEALTH WITH PEPSI

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 a diverse range of fun and healthy products, making the healthy choice an easier choice.  As PepsiCo grows, the portfolio transformation will continue with a systematic plan to reduce added sugar, sodium and saturated fats in its products. Today, the portfolio includes several healthier treats and some hydrating and nourishing products. 

Tropicana 100 % juice range that provides essential nutrition and vitamins. Tropicana nectars and juice based drinks – Tropicana Twister, Slice and Slice Mangola.

Products with reduced sugar or calories such as Diet Pepsi and 7UP Light Gatorade, the worlds leading sports drink, has valuable re-hydration

benefits and is scientifically formulated to quench thirst, replace fluids and electrolytes and provide carbohydrate energy.

Aquafina packaged water and bulk water Breakfast cereal, Quaker Oats, which  is rich in soluble fibre, beta-glucan,

Vitamin B complex and helps in lowering cholesterol

 

Improving core products

Frito Lay’s core products, Lay’s Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce the saturated fat in these brands by 40%

The nutritious Lehar Lite range of snacks contains 25% less oil The Lehar “roasted” line of namkeens uses oil sparingly in its products and

only in the seasoning Frito Lay’s products are MSG and trans-fat free and contain on pack

voluntary nutritional labeling

Offering Portion Choices:  Most of PepsiCo’s products are available in a range of packages e.g small packs, so consumers can select a size suited to particular occasions and dietary needs.

Promoting active lifestyles to kids: 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.

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 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 commitment to spreading awareness and creating a holistic network of professionals working in areas relevant to this issue.

http://upload.wikimedia.org/wikipedia/commons/0/0b/SWOT_en.svg

If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is SCAN analysis. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

Strengths: attributes of the organization that are helpful to achieving the

objective.

Weaknesses: attributes of the organization that are harmful to

achieving the objective.

Opportunities: external conditions that are helpful to achieving the

objective.

Threats: external conditions which could do damage to the business's

performance.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

Following SWOT analysis is based on the researcher’s observation of the market while conducting the research and project’s data analysis. This information does not come within the preview of the research.

SWOT analysis of PepsiCo:

Strength: Pepsi has a broader product line and the outstanding reputation.

Merger of the Quaker Oats produced synergy across the board.

Record revenues and the increasing market share.

Lack of capital constraints

Great brands, strong distribution and innovative capabilities

Number one maker of snacks, such as corn chips and the potato chips

PepsiCo sells its three products through the same distribution channel.

For example, combining the production capabilities of the Pepsi, Gatorade and Tropicana is

a big opportunity to reduce the costs, improve efficiency and smooth out the impact of the

seasonal fluctuations in demand for the particular product.

Weakness:

Pepsi hard to inspire vision and the direction for large global company.

Not all the PepsiCo products bear the company name

PepsiCo is far away from the leader Coca-cola in the international market demand

is highly elastic.

Opportunity:

Food division should be expand internationally

Noncarbonated drinks are fastest-growing part of the industry

There are increasing trend toward the healthy foods

Focus on the most important customer trend - "Convenience".

Threats:

F&B industry is now mature

Pepsi is blamed for pesticide residues in their products in one of their most

promising emerging market like in India

Over 50% of the company's sales come from Frito-Lay; this is a threat if the market

takes a downturn

PepsiCo now competes with the Cadbury Schweppes, Coca-Cola, and Kraft foods

(because of broader product line) which are well-run and the financially sound

competitors.

Size of the company will demand a varied marketing program; Social, cultural,

economic, political and governmental constrains.

PEST Analysis:

The PEST analysis examines changes in a marketplace caused by Political, Economical,

Social and Technological factors.

P: Political change, from one party to another in control- for example the rise in private

healthcare and the privatizations under Conservative governments.

Political Analysis for Pepsico

Non-alcoholic beverages fall within the food category under the FDA. The government

plays a role within the operation of manufacturing these products in terms of the

regulations. There are potential fines set by the government on companies if they do not

meet the standard of laws.

The following are some of the factors that could cause pepsico company's actual results to

differ materially from the expected results described in their underlying company's

forward statement are:-

Changes in laws and regulations, including changes in the accounting standards,

taxation requirements, and environmental laws in domestic or foreign jurisdictions.

Changes in the non-alcoholic business environment. These include, without

limitation, competitive product and the pricing pressures and their ability to gain or

maintain share of sales in the global market as a result of action by competitors.

Political conditions, especially in the international markets, including civil unrest,

government changes and restrictions on the ability to transfer capital across

borders.

Their ability to penetrate the developing and emerging markets, which also

depends on the economic and political conditions, and how well they are able to

acquire or form strategic business alliances with local bottlers and make the

necessary infrastructure enhancements to the production facilities, distribution

networks, sales equipment and technology.

E: Economic change, for example a recession creating increased activity at the lower ends

of the product price ranges. Rate of interest rises depressing business and causing

redundancies and lower spending level.

Economic Analysis for pepsico

Last year the U.S. economy was the strong and nearly every part of it was growing and

doing well. However, things changed. Most economists loosely define a recession as the two

consecutive quarters of contraction, or negative GDP growth. On Monday 26, the

government officially declared that the U.S. has been in recession since March.

However, because of the aggressive action by the Federal Reserve and the Congress it will

be short and mild. The economy will return to the sustained, positive growth in the first

half of 2002.

Future Outlooks

The Federal Reserve is doing all that it can help the economy to recover. They have

cut the interest rate ten times in this year. The rate now lies at a 40-year low of

2.1%. Lowering the interest rates will ultimately excite consumer demand in the

economy. Companies will expand and increase use of debt as a result of the low

borrowing rate. Pepsico can borrow money for investing in some other product as

the interest rates are low. It can use the borrowing on the research of new products

or technology. As researching for new products would cost less the pepsico

Company will sell its products for less and the people will spend as they would get

cheap products from the pepsico.

Before the attacks on September 11, 2001, the US was starting to see the economy

recover slightly and it is only just recently that they achieved economic levels.

Consumers are now the resuming their normal habits, going to the malls, car

shopping, and eating out at restaurant. However, many are still handling their

money cautiously. They believe that with the lower inflation still to come,

consumers will recover their confidence over the next year.

The non-alcoholic beverage industry has high sales in countries outside the U.S.

According to the Standard and Poor's Industry surveys,"For major soft drink

companies, there has been the economic improvement in the many major

international markets, such as Japan, Brazil, and Germany." These markets will be

continue to play a major role in the success and the stable growth for a majority of

the non-alcoholic beverage industry.

S: Social change involves changing attitudes and the lifestyles. The increasing number of

women going out to work, for example, led to the need for the time-saving products for the

home.

Social Analysis for pepsico

Many U.S. citizens are practicing healthier the lifestyles. This has affected the non-

alcoholic beverage industry in that many are switching to the bottled water and diet

colas instead of beer and other alcoholic beverages. Also, time management has

increased and is at the approximately 43% of all households. The need for the

bottled water and other more convenient and healthy products are in important in

the average day-to-day life.

Consumers from the ages of 37yr-55yr are also increasingly concerned with the

nutrition. There is a large population of the age range known as the baby boomers.

Since many are the reaching an older age in life they are becoming more concerned

with the increasing their longevity. This will continue to affect the non-alcoholic

beverage industry by increasing demand overall and in the healthier beverages.

T: Technological change - creates opportunities for new products and the product

improvements and of course new marketing techniques- the Internet.

Technological Analysis for pepsico

Some factors that cause company's actual results to differ the materially from the expected

results are as follows:

The effectiveness of the company's advertising, marketing and promotional

programs. The new technology of the internet and television which use special

effects for advertising through media. They make some products look attractive.

This helps in the selling of the products. This advertising makes the product

attractive. This technology is being used in the media to sell their products.

Introduction of cans and plastic bottles have increased the sales for pepsico as

these are easier to carry and you can bin them once they are used.

As the technology is getting advanced there has been introduction of the new

machineries all the time. Due to introduction of this machineries the production of

pepsico company has increased tremendously then it was few years ago

MARKETING MIX :-The tools of marketing mix are combined in such a manner that they give maximum mileage to the product from the factory to the consumer’s hand.

Product

Price

Place

Promotion

PRODUCT

People satisfy their needs and wants with products and services, a product is

anything that can be offered to a market to satisfy a need or want- The concept of

product is not limited to physical objects - anything capable of satisfying a need

can be called a product. Haidri Beverages is the company that has taken up the

franchise to produce Pepsi for the area of Maharashtra and Delhi. The production

capacity of the plant is to produce 73,000 cases of 24 bottles of 250-ml. For this

reason the company has three lines of production to fulfill the ever-growing

demand. Pepsi is one of the core products of the organization and the company

puts in a lot of effort to retain its image through its highly professional team. The

members of the organization work day and night making every possible effort to

attain the organizational goals.

PRICE

Price is the amount of money the customers are willing to pay to obtain that

particular product. Providing quality products at the lowest possible price had

always been one of the main concerns of Pepsi. One of the ways by which the

company has been able to assist this effort is by increasing the use of inexpensive

and recyclable plastic bottles. The government policy, at times, makes a lot of

difference as the government may increase the freight charges, the prices of glass,

or the prices of steel. Thus the overall price of the product also gets affected. The

price of Pepsi Cola is very reasonable as compared to other drinks and the

management makes every effort to make the product at the lowest possible cost but

the highest quality.

Pepsi wants its product to be available to all PRICING STRUTCTURE:-

QUANTITY PRICE

200 ML 9

300 ML 12

330 ML(CAN) 20

500 ML 23

1 LIT 35

2 LIT 60

PLACEPlace includes the company activities that make the product available to target consumers. Pepsi Cola is placed in the market according to the extent of the target market located in that particular geographical area. Haidri Beverages place their product in the market with the help of its indirect distribution network. The retail stores are spread all around the franchised area in order to ensure the availability of the product all the year round. The major retail stores located in Maharashtra and Delhi are in the Blue Area, Jinnah Super Market, Super Market, and in almost every sector of Islamabad. The entire DELHI Cantonment and the entire city as well have many retail outlets where Pepsi is available in abundance. The distribution network also works according to the promotional campaign or the

season. For example, in the cricket season the company tries to make the product available in areas where Cricket is being played.

Pepsi covers almost 95% of total area.

It sells through local retailers.

It is available everywhere.

PROMOTION

Promotion means activities that communicate the merits of the product in order to persuade the target customers to buy it. Promotion plays a vital role in the success or failure of a product. Promotion of the right product at the right time is an ideal situation for a company. Pepsi is one of those products on which the franchisers spend millions of Dollars/Rupees for its promotion. Haidri Beverages invest a huge amount of money on the promotional campaigns of Pepsi. There are different ways of promoting a product through retailing, personal selling, and advertising. The company strongly emphasizes on advertisements as the other two methods area not much effective in attracting the attention of their target audience. Huge amount of money spend on advertisement on T.V, Magazines, And Banners. It sponsor’s award function’s and sports activities.

ADVERTISING & PUBLICITY

Pepsi Co. is one of the biggest and spenders in India. It is also one of the biggest global ad

spenders. It has long a list of endorsers from pop star Ricky martin to file stars Shahrukh

Khan, Amitabh Bacchan etc. & Cricket stars Sachin Tendulkar, V.V.S Laxman, Harbhajan

Singh etc. Hindustan Thompsom Associates, the big gets advertising agency of India has the

account of Pepsi Co. is known for its board cast advertising but it also spends a lot in non

board cast advertising i.e. hoarding, banners, posters stickers, specialties, hangar,dealer

board, glow signboards, wall painting and news paper. The expenses on these type of

advertising are made at territory or unit level. LUCKNOW territory has assigned two local

advertising agencies R.D. Associates and Krishna for its territorial advertising.

PEPSI VS COKE/ RIVALRY WITH COKE

Pepsi ads often focused on celebrities, choosing Pepsi over Coke, supporting Pepsi's positioning as "The Choice of a New Generation." In 1975, Pepsi began showing people doing taste tests called Pepsi Challenge in which they preferred one product over the other, and then they began hiring more popular spokespersons to promote their products.

Coke dispenser flown aboard the Space Shuttle Endeavour in 1996.In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars, i.e. Pepsi Stuff. Consumers were invited to "Drink Pepsi, collect Pepsi Points on billions of packages. They could redeem the points for free Pepsi lifestyle merchandise.

After researching and testing the program for over two years to ensure that it resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success. Tens of millions of consumers participated. Pepsi outperformed Coke during the summer of the Atlanta Olympics - - where Coke was a lead sponsor of the Games. Due to its success, the program was expanded to include Mountain Dew. The company continued to run the

program for many years, continually innovating with new features each year.

In 1985, Coca-Cola and Pepsi were launched into space aboard the Space Shuttle Challenger on STS-51-F. The companies had designed special cans (officially the Carbonated Beverage Dispenser Evaluation payload or CBDE) to test packaging and dispensing techniques for use in zero G conditions. The experiment was classified a failure by the shuttle crew, primarily due to the lack of both refrigeration and gravity. A Coca-Cola fountain dispenser (officially a Fluids Generic Bio processing Apparatus-2 or FGBA-2) was developed for use on the Space Shuttle Endeavour as a "a test bed to determine if carbonated beverages can be produced from separately stored carbon dioxide, water and flavored syrups and determine if the resulting fluids can be made available for consumption without bubble nucleation and resulting foam formation". The unit flew in 1996 aboard STS-77 and held 1.65 liters each of Coca-Cola and Diet Coke.

TECHNIQUES FOR SALES PROMOTION

1.) Product availability

It means all the flavors of Pepsi should be available at one time. By which

customer can able to give any flavor to the consumer and can give the

satisfaction.

2.) 100% rich - It means that Company’s top management should always

worry about the quality of all the brands. If any organization wants to

service in the market and wants to better its image then quality play a very

integral role so for sales promotion quality should be 100% and good.

3.) Good relation – Company’s executive, sales man should make good

relation from dealer, whole seller and retailer. There is only 20% brand

loyal person. Remaining 80% impulse selling is going on. It means in India

in cold drinks line which ever brand consumer see first of all that brand is

demanded by user.

4.) Proper signage- Proper shin age also play a key roll in more selling.

5.) Fulfill the commitment– if executive promise to the customer of any

type. Then executive shovel fulfill his promise, such as. Executive say that

to the retailer if you will sell 1000 carrot in this month then I will give you a

coke fridge. If retailer has sold out 1000 carrot in the month then executive

should fulfill his commitment. By this manner selling will also improve.

SCHEME AS AN EXAMPLE OF SALES PROMOTION

1. 2 bottle 200ml free on 300ml/ Pepsi, Dew, 7up Mirinda

2. 2 bottle 600ml free on 2000ml/ Pepsi, Dew, 7up Mirinda

3. 2 bottle 500ml free on 500ml Lehar soda

Basic Channels of Distribution

Manufacturers/products

Agents/brokers

Wholesalers/distributors

RetailersRetailers

Consumers and organizational end users

Distribution Objective

Minimize total distribution costs for a given service output

Determine the target segments and the best channels for each segment

Objectives may vary with product characteristics

e.g. perishables, bulky products, non-standard items, products requiring installation &

maintenance

DISTRIBUTION CHANNELS (Pepsi)

There are two marketing channels that involve in the transfer of product from the producer

to the consumer. The intermediaries involved in the transfer are distributors and retailers.

DISTRIBUTORS:

Place

Distributors are appointed agents of the company who make orders to the company by

paying in advance through drafts, stock the products in their godowns and supply them to

outlets through their fleet of delivery was and a team of salesmen and drivers. They are

allowed to sell to company's product to the retailers in a specified area. The company

divides this area into routes. Each route is covered by one unit i.e. one de livery van, one

salesman one driver, one helper etc. These units and godown are their main investment.

Distributors have to invest in empty bottles and crates too, so t hat they can maintain a

specified quantity of reserve stock and facilitate the quick ratation of glass crates.

The company evaluates its distributors at the end of the year and makes plans for

the next year. Company fixes the targets for each distributor according to market size, last

year’s sales, potential growth assumption based on deposit of empties and installation of

coolers at outlets. Distributors are awarded with a fair margin of RS. 10 per crate for their

service. This margin could be increased for the sale above the targets, company offers are

met with distributors before appointing them. Distributor complying with many schemes

and contests for its customers for pushing different brands and giving various services.

Company also offers many gifts like, briefcase, and handbags. T-shirts, caps etc.to

encourage the distributors. If distributor does not agree with the conditions of these

agreement company may reduce the area of distributor or may even terminate the

relationship.

RETAILERS:

The sale of particular soft drinks depends a lot entirely on retailer’s wish. Like if he does

not keep Aquafina and if his shop is at the prime location then certainly the customer with

turn towards other cola drinks like Bisleri, Bailley ,Kinley etc. This all goes to prove that

retailer is king. So retailers require special focus from the company. Pepsi Co. helps the

retailers to serve its customer better by providing good margin to them for storing its

product using merchandising to improve in-store product display, installing cooling

equipment in outlets to make the product ready to drink and offering different promotion

schemes to them time to time to push different brands, Pepsi Co. Provides a fair margin of

RS. 24 per crate to the retailers.

CUSTOMER SERVICE DEPARTMENT

Customer Service is a support function to sales and marketing Department and is

concerned with effectively dealing with all customer complaints

This starts from: Ensuring Receipt, Documentation and Follow Up of all complaints to be

take care of within a specified time in order to achieve the ensure Customer (retailer)

distributor and consumer Satisfaction. The Customer complains directly through phone or

pager or through the sales team visiting them.

Types of Complaints handled are related to:

Consumer

Signage and Schemes

POPULAR SLOGANS :-

2006-2007

Yeh PYAAS Hai BADI!!

2007-2008

Yeh DIL Mange MORE!!

2008-2009

Yeh hai Youngistaan Meri Jaan!!

2010

Yeh Hai Youngistaan Ka WOW!!

WOW!!

CompetitorsCoke v/s Pepsi-Product

As seen above both the companies Coke and Pepsi have

a number of products . Many of these products a re innovat ions but there are a lso many products which are brought out jus t as a compet i t ive product for the o ther companies . Some of these products tha t a re brought in the market by both the companies to compete agains t each o ther a re

as fo l lows:

Coke Pepsi

The main dark cola drink of the company which

started the rivalry between

these companies.

Pepsi version of dark cola which

is the major primary

competitor to Coke.

F u l l T h r o t t l e i s a n e n e r g y d r i n k b r a n d p r o d u c e d b y

T h e C o c a - C o l a C o m p a n y . I t d e b u t e d i n

l a t e 2 0 0 4 i n N o r t h

A m e r i c a .

A M P i s a n e n e r g y d r i n k p r o d u c e d a n d

d i s t r i b u t e d b y P e p s i C o u n d e r t h e M o u n t a i n D e w s o f t

d r i n k b r a n d .

V a u l t i s a c a r b o n a t e d

b e v e r a g e t h a t w a s r e l e a s e d b y T h e C o c a -

C o l a C o m p a n y i n J u n e 2 0 0 5 .

M o u n t a i n D e w M D X i s

a n e n e r g y d r i n k

m a n u f a c t u r e d a n d

d i s t r i b u t e d b y P e p s i C o u n d e r t h e M o u n t a i n

D e w b r a n d . I t w a s

i n t r o d u c e d i n 2 0 0 5 .

D i e t C o k e o r D i e t C o c a - C o l a i s a s u g a r - f r e e s o f t d r i n k p r o d u c e d a n d

d i s t r i b u t e d b y T h e C o c a - C o l a C o m p a n y . I t w a s i n t r o d u c e d i n t h e

U n i t e d S t a t e s i n J u l y 1 9 8 2 .

D i e t P e p s i i s a l o w - c a l o r i e c a r b o n a t e d c o l a . I t w a s i n t r o d u c e d i n 1 9 6 4 a s a v a r i a n t o f P e p s i - C o l a w i t h n o s u g a r .

P o w e r a d e i s a s p o r t s d r i n k b y T h e C o c a - C o l a C o m p a n y a n d c u r r e n t l y

n u m b e r t w o i n t h e s p o r t s d r i n k m a r k e t w o r l d w i d e .

G a t o r a d e i s a n o n - c a r b o n a t e d s p o r t s d r i n k m a r k e t e d b y Q u a k e r O a t s C o m p a n y , a d i v i s i o n o f P e p s i C o .

O r i g i n a l l y m a d e f o r a t h l e t e s , i t i s n o w o f t e n c o n s u m e d a s a s n a c k b e v e r a g e .

S p r i t e i s a c l e a r , l e m o n - l i m e f l a v o r e d , n o n - c a f f e i n a t e d s o f t d r i n k , p r o d u c e d b y t h e C o c a - C o l a C o m p a n y .

I t w a s i n t r o d u c e d t o t h e U n i t e d S t a t e s i n 1 9 6 1 .

7 Up is a brand of a lemon-lime flavored soft drink.

M i n u t e M a i d i s a p r o d u c t l i n e o f b e v e r a g e s , u s u a l l y a s s o c i a t e d w i t h

o r a n g e j u i c e , b u t n o w e x t e n d s t o s o f t d r i n k s o f m a n y k i n d s . T h e M i n u t e

M a i d c o m p a n y i s n o w o w n e d b y C o c a - C o l a , a n d i s t h e w o r l d ' s l a r g e s t m a r k e t e r o f f r u i t j u i c e s a n d d r i n k s .

I t i s h e a d q u a r t e r e d i n H o u s t o n , T e x a s .

T r o p i c a n a P r o d u c t s i s a n A m e r i c a n c o m p a n y b a s e d i n B r a d e n t o n , F l o r i d a ,

U S A , w h i c h i s o n e o f t h e w o r l d ' s l a r g e s t p r o d u c e r s a n d m a r k e t e r s o f o r a n g e j u i c e . I t h a s b e e n o w n e d b y

P e p s i C o , I n c . s i n c e 1 9 9 8 .

K i n l e y i s a b r a n d o f s t i l l o r c a r b o n a t e d w a t e r o w n e d b y T h e

C o c a - C o l a C o m p a n y .

Aquafina is a non-carbonated bottled water produced by PepsiCo.

PEPSI’S MARKETING STRATEGIES

Pepsi’s approach is radically different from that of Coke, Pepsi has gone in for

concentration segmentation. Pepsi has targeted the youth segment instead of trying to

be something to all segments.

Pepsi has since beginning strove to achieve its international position as `a drink

for the new generation’ in India. Helped by HTA’s forceful visuals and creative, Pepsi

has been successful in positioning itself for the younger generation.

SELLING PROCESS

Pepsi has a very well managed selling system. It takes as lot of care to ensure

that the products (Pepsi bottles) are available to the consumers.

Pepsi soft drinks are produced in our plant in different SKUs (Stock keeping

units) and distributed to our distributer and they further supply to the retailer.

Shahibabad (GZB) has been divided around 14 routes which are called direct routes.

For every route there is a Routs Agent. Route Agent moves with the company owned

truck and ensure that maximum shops are covered each day, so that regular supply of

Pepsi soft drinks is made.

Routs agents take the order from the shopkeepers and then with the help of loaders

they give the required number of crates to the retailer or shopkeeper & then move to

next.

Our plants also have some agency in each rout. They supply in the areas where

Pepsi’s trucks are not able to reach. These areas are called indirect-routes.

MICHAEL PORTER MODEL FOR PEPSI

POTENTIAL ENTRANTSBUYERS

SUPPLIERS SUBSTITUTES

INDUSTRY COMPETITORS

Sources: Phillip kotler’s Marketing Management

ENTRANTS

Two soft drink giants i.e. Pepsi, Coke, are already here, no other company plans to

enter in this capital-intensive industry at the moment. The investment in this industry is

more than Rs.100 per crate. This leaves no scope for small players who cannot match

the might of the two multinational giants. Thus at the moment there are no potential

entrants.

SUPPLIERS:

The bottling is done either by franchises or by company owned bottling plants. The

empty glass bottles and shells are sourced from local manufacturers. The ingredients

for the concentrate are sourced and manufactured locally. There is abundant supply of

water and sugar. Thus on the suppliers side Pepsi does not have a problem. Presently

the cans are imported and filled locally near Pune in Maharashtra. Seeing the potential,

various local manufacturers are setting up plants for manufacturing cans in India. Soon

this problem will also be resolved.

BUYERS

The following are the various market segments

1. On-premise market.

2. Home market.

3. At work market.

4. Youth market.

5. Special events market.

6. High visibility market.

SUBSTITUTES

Any drink, which quenches thirst, is a substitute. Thus this industry is highly competitive

as even water is substitute and almost a dozen products are launched every year.

Recently Dabar India Ltd. has launched “Real” - fruit juices and the makers of “Frooti”

have launched “Jolly Jelly”. But nowadays, people prefer carbonated drinks because of

the taste, fizz and the fun element attached with it.

COMPETITION: -

The other two major players in this industry are Coca Cola and Cadbury Schweppes.

The real competition is between Pepsi and Coke. Presence of competition will ensure

expansion of the market by collective efforts, which is growing at a rate of 25% annually.

There is tremendous potential considering the per capita consumption of India, which is

a measly 0.6 liters as compared to US where it is 83.5 liters. Presently Pepsi has stolen

a march over its rival because of its marketing efforts.

COCA-COLA

MARKETING STATEGIES OF COKE

a) PRODUCT

Coke was launched in India in Agra, October 24, in '93', soon after its

traditional all Indian launch of its Cola. At the sparking new bottling plants at Hathra

near Agra.Coke was back with a bang after its exit in 1977. Coke was planning to

launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite,

following later in the year.

Coke's product line includes, Coca-Cola, Thums Up, Fanta, Maaza, Sprite, Club Soda,

7-up,Limca,Fanta apple, Diet Coke.

PACKAGING

Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and

different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. and

bottles of 1 and 2 litre.

PRODUCT POSITIONING

One important thing must be noticed that Thums Up is a strong brand in western

and southern India, while Coca Cola is strong in Northern and Eastern India. With

volumes of Thums Up being low in the capital, there are likely chances of Coca Cola

slashing the prices of Thums Up to Rs. 5 and continue to sell Coca Cola at the same

rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands in

comparison to Pepsi which has just one.

Thums Up accounts for 40% of Coca Cola company's turn over, followed by

Coca Cola which has a 23% share and Limca which accounts for 17% of the turn over

of the company. We will sell whatever consumers wants us to". Coca Cola India has

positioned Thums up as a beverage associated with adventure because of its strong

taste and also making it compete with Pepsi as even Pepsi is associated with adventure

youth.

b) PRICE

The price being fixed by industry, leaving very little role for the players to play in

the setting of the price, in turn making it difficult for competitors to compete on the basis

of price.

The fixed cost structure in Carbonated Soft Drinks Industry, and the intense competition

make it very difficult to change or alter the prices. The various costs incurred by the

individual companies are almost unavoidable. These being the costs of concentrates,

standard bottling operations, distributor and bottlers commissions, distribution expenses

and the promotional and advertising expenditure (As far as Coke is concerned, it had to

incur a little more than Pepsi as Pepsi paved its way to India in 1989 while Coke made a

comeback in 1993.)

Currently a 300 ml. Coke bottle is available for Rs10 the 330 can was initially

available for Rs. 15 and now Rs.20. The prices of 500 ml, 1 litre. And 2ltr being Rs20

Rs.35 and Rs.50 respectively (according to the current survey).

However, the trends may have been in the early '90's, now the prices of Pepsi and Coke

are the same making it difficult in future and present to compete on the basis of price.

c) PLACE

Coke may have gained an early advantage over Pepsi since it took over Parle in

1994. Hence, it had ready access to over 2,00,000 retailer outlets and 60 bottlers.

Coke was had a better distribution network, owing to the wide network of Parle drinks all

over India. Coke has further expanded its distribution network.

Coke and its product were available in over 3,00,000 outlets (in contrast with

Pepsi's 2,75,000). Coke has a greater advantage in terms of geographical coverage.

Coke and Pepsi have devised strategies to get rid of middlemen in the

distribution network. However, 50% of the industry unfortunately depends on these

middlemen. As of now, around 100 agents are present in Delhi. Bottlers of the 2

multinationals have strongly felt the need to remove these middlemen from the

distribution system, but very little success has been achieved in doing so.

d) PROMOTION

It must be remembered that soft drinks purchases are an "impulse buy low

involvement products" which makes promotion and advertising an important marketing

tool. The 2 arch rivals have spent a lot on advertising and on promotional activities.

According to Paul Stobart, Advertising encourages customers to recognize the

quality the company offers. Price promotions often produce short-term sales increases.

Coca Cola has entered new markets and also developing market economics (like India) with

much-needed jobs.

STRATEGIES ADOPTED

BY COKE AND PEPSI

The Pepsi Process: Despite being a global brand, Pepsi has built its success on

meeting the Indian consumer’s needs, particularly in terms of making the brand

synchronize with localized events and traditions. Instead of harping on its global

lineage, ergo, it tries to plug into ethnic festivals, use the vernacular indifferent part of

the country, and blend into the local fabric. Pepsi is using both national campaigns-such

as the Drink Pepsi, Get Stuff scheme, which offers large discounts on other products to

Pepsi-buyers as well as local .

The Coke Copy: Instead of creating a bond with the customers through small but high-

impact events, Coca-Cola chose to associate itself with national and international mega

events like the World Cup Cricket, 1996, and world cup football 1998. But now coke is

also entering into local actions. Coke is also trying to make their brand synchronize with

localized events traditions and festivals. Coca-Cola new tag line in this advertisement is

“Real shopping, Real refresher”. In this way Coke is copy Pepsi.

EMPOWERMENT

The Pepsi Process: Once of the strongest weapons in Pepsi’s armory is the flexibility it has empowered its people with. Every manager and salesperson has the authority to take whatever steps he, or she, feels will make consumers aware of the brand and increase its consumption.

The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by the need

for approvals from Atlanta for almost everything. In the past, this has shown up in its

stubborn insistence on junking the franchisee network it had acquired from Parle; in its

dependence on its own feedback mechanism over that of its bottlers;’ and on its

headquarters-led approach.

PRICE

The Pepsi process: Pepsi has consistently wielded its pricing strategy as in invitation

to sample, aiming to turn trial into addiction.

It launched the 500 ml bottle in 1994 at Rs. 18 versus Thums Up’s Rs. 9, in April, 1996,

its 1.5 litre bottle followed Coke into the marketplace at Rs. 30 – Rs 5 less than

Coke’s .But it couldn’t continue the lower price positioning for long.

The Coke Copy: Initially, coke carbon-copied the strategy by introducing its 330ml cans

in January 1996, at an invitation price of Rs. 15 before raising it to Rs.18. By this time, it

had realized that the Coca-Cola brand did not hold enough attraction for customers to

fork out a premium.

The Cola

Wars

OVER A CENTURY OF COLA SLOGANS, COMMERCIALS, BLUNDERS, AND

COUPS

There's little doubt that the most spirited and intense competition in the beverage world

is between Coca-Cola and Pepsi. These two American companies long ago took their

battle worldwide, and although there are other colas in the market, these giants occupy

this high-stakes arena by themselves. The impact of Coke and Pepsi on popular culture

is indisputable, and I have observed in my time managing this web site that America

has not become jaded about the cola wars. The memorabilia, the jingles, the trivia - all

still popular. So I am offering this page in an attempt to assuage a wee bit of the Coke

and Pepsi thirst that is thriving on our planet.

IT ALL STARTED . . . .

Coca-Cola was invented and first marketed in 1886, followed by Pepsi in 1898. Coca-

Cola was named after the coca leaves and kola nuts John Pemberton used to make it,

and Pepsi after the beneficial affects its creator, Caleb Bradham,

claimed it had on dyspepsia. For many years, Coca-Cola had the cola market cornered.

Pepsi was a distant, no threatening contender. But as the market got more and more

lucrative, professional advertising became more and more important. These soda

companies have been leading the way in advertising ever since.

ADVERTISING HISTORY & COMMERCIALS

Pepsi has definitely leaned towards the appeal of celebrities, popular music, and young

people in television commercials, while Coke relies more heavily on images of

happiness and togetherness, tradition, and nationalism, perpetually trying to cash in on

its original lead. In a simplified sense, you could sum up the strategies as Coke: Old,

Pepsi: New. In fact, as we will see, when Coca-Cola tried something new, it was

disaster.

The first magazine ad for Coca-Cola appeared in Munsey's in 1902. Advertisements

began to appear on billboards, newspapers, and streetcars. Soon there were serving

trays with images of people enjoying Coca-Cola, and glasses with the cola's name on

them. At this time, Coca-Cola and Pepsi were served in drugstore soda fountains.

In 1909, Pepsi used its first celebrity endorser, automobile race driver Barney

Oldfield, in newspaper ads. In 1921, Pepsi went bankrupt, but continued to appear on

the scene, although not nearly so successfully as Coca-Cola. In 1931, Pepsi went

bankrupt again, but the new owner, Roy Megargel, would hit upon an idea that would

finally give Coca-Cola some competition. In 1934, he marketed Pepsi in a 12-ounce

bottle for a nickle. At the time, Coca-Cola was sold in a 6-ounce bottle for ten cents.

Voila! Profits for Pepsi.

Pepsi racked up another first by airing the first radio jingle in 1939. It was so popular

that it was played in jukeboxes and became a hit recordCoca-Cola hit the airwaves in

1941.

In 1946, inflation forced Pepsi to increase prices. And in 1950, Pepsi offered a larger

26-ounce bottle to court the young American housewife.

In the 1960's, the cola ad wars moved to television. Coca-Cola employed a host of celebrity singers to promote the product, including Connie Francis , Tom Jones, The New Beats, Nancy Sinatra, and The Supremes. As we moved through the years, both colas incorporated some of their best slogans ("Pepsi Generation" and "the Real Thing") into subsequent commercials.

RESEARCH METHODOLOGY OF COMPARISION

Research in common language refers to a search for knowledge. One can also

define research as a scientific and systematic search for pertinent information

on specific topic.

In this era of cutthroat competition it is of vital importance for any company have

a strong foothold in the product market and having a strong distribution network,

effective sales promotion and advertising strategies. These pricing policies should also

be such which will help them in achieving their targets. Ever company strives to earn

profit through maximizing their sales according to varying needs of their customers. The

same applies to the soft-drink company also.

Both the two companies PepsiCo, Coca-Cola (I) Ltd. is aiming to rise well above their

competitors. So the researcher was entrusted to carry out marketing overview about

some of the most usually demand soft drink.

In order to clearly define the task we obtain ideas and insight through the survey

method from primary sources.Field research through observation of customers and

distribution channels.

Objective & Limitations

The subjects (companies) under study in this project are:-

i) PepsiCo

ii) Coca-Cola (I) Ltd.

Secondary Objectives

The secondary objective of the research is to gauge the image of PepsiCo Vis-a --Vis

Coca-Cola [I] Ltd. The research was planned to find the effect of the different brand

position strategies adopted from time to time on audience’s perception.

It is believed that the audience is perplexed by almost same appeal by both the

companies in their recent advertisements

The need is to identify new avenues and ways to project the image of their company.

To identify the difference in their tone, look and style of communication.

To do a comparative study of who comes up with more exciting and innovative

offers.

To find out the consumer’s perception about efficiency of marketing and the future

market leader.

To sketch the imagery of the consumers about various brands and both the

companies in totally.

For this purpose fieldwork as well as table work was done to complete the project. The

various facts and figures of the companies were studied and subsequently suggestions

are made, which keep the company the vendors and the consumers in mind.

CONLUSIONS

Pepsi is the market leader in terms of soft drinks in India, but comes second to Coca-Cola which consists of Coca-Cola brands.

Pepsi’s main target is obviously to be the market leader and leave its nearest competitor, Coca-Cola, far behind. To achieve this Pepsi seems to be relying on mass advertising. They spend about 60-70 crore rupees annually on marketing activities. The consumer is bombarded with Pepsi advertisements, sign, logo’s etc., everywhere.

Pepsi’s core market is the young –adult and Pepsi is taking great measures to change theperception of these young-adults., Pepsi wants that these consumers should associate all colas as Pepsi, the brand Pepsi and cola should be synonymous with each other. This they are trying to do by getting the heroes of these consumers to endorse their product e.g. Sachin Tendulkar and also by advertising for and by youngsters.

Pepsi drinks are available in almost the whole of India, this shows the importance paid to distribution. Brand loyalists are very few in the market. Thus the drink should be easily available, so that consumers cannot shift their preferences.