piyush singhal(pepsico)

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A Project Study Report On Training Undertaken at PepsiCo “DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS’’ Submitted in partial fulfillment for the Award of degree of Master of Business Administration 2012-2014 Submitted by: Submitted by: Piyush agrawal Deepti Hariramani Enrollment no.12MARXX623 Asstt. Professor 1

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DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS’’ .........................................................................................................................................................................................................................................................................................

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Page 1: Piyush singhal(pepsico)

A

Project Study Report

On

Training Undertaken at

PepsiCo

“DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS’’

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

2012-2014

Submitted by: Submitted by:

Piyush agrawal Deepti Hariramani

Enrollment no.12MARXX623 Asstt. Professor

Arya College of Engineering & I.T.

Kukas Jaipur.

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DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “A STUDY

ON DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS”.

Written and submitted by me to University of Rajasthan in partial fulfillment of

the requirement for the award of the degree of Bachelor of business

administration was done under the guidance of Mrs. Deepti Hariramani

This my original work and the conclusions drawn therein are based on the

material collected for the purpose mentioned.

Piyush agrawal

M.B.A 2nd year

PREFACE

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Experience is one of the most important parts for success. From internship training

programs one acquires knowledge by experience. So, practical training is considered to

be an essential part in all of the best leading business school and other professional

institutions. As a part of a management course, students have to undergo a project,

which deigned keeping the prerogative and preferences of industry in mind. This

particular training allows a student to implement what he has learned within the four

walls of class room. It is here, the caliber of the student is tested to find his potentiality

for various tasks assigned to him in future. This report that I am submitting intends to

highlight my capability in sustaining the pulls and pressure of the day to day

professional life and put to perspective the facts that I am capable enough to deliver

whenever a challenge is thrown to me. I have done my training in Jaipur under the

guidance of the executives of Varun Beverages Pvt. Ltd. Which the franchise is owned

bottling plant of PepsiCo India Limited. The bottling plant is located at Chhata

(Mathura).

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ACKNOWLEDGEMENT

“Acknowledgement is an art, one can write glib stanzas without meaning a word,

and on the other hand one can make a simple expression of gratitude”

This is to offer gratitude to all those people without whom this project would have

never seen the light of day. First of all I would like to acknowledge my sincere

gratitude and indebtedness to Mr. Pankaj Kumar garg (Marketing executive) of

Varun Beverages Pvt. Ltd.I take this opportunity to express my heartfelt thanks to

Mr. Sunil Kumar (Marketing executive) Mathura Marketing Company, without whose

support it was impossible to complete this training program. In spite of being busy in

his job, he helped and guided me whenever I required. I would like to express my

deepest gratitude to Prof. Mrs.Deepti Hariramani for his expert guidance and

support throughout the project. I express my sincere thanks and gratitude to the

above stated person who have helped me directly and also to those who have

helped me indirectly.

PIYUSH AGRAWAL

MBA 2ND YEAR

EXECUTIVE SUMMARY

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The following report by me discusses the detail of distribution channel

management of Mathura. Marketing Company which is a marketing unit of

Varun Beverages Pvt. Ltd. The main purpose of this analysis is to study the

distribution strategy of company and expectation of dealers. It aims at finding

the retailer satisfaction level and the problem faced by him.

During my tenure at my training, I came to know about the company along with

their distribution channel network. As mentioned before in context of aim of

project we studied the problem (Problem faced by retailers).

In order to do so we conducted a survey (using non probability sampling) of

around 150 retailers. Hence after extensive survey we studied the result.

Consequently we came to know the various problems which are being faced by

retailers and also gave suggestions so that those problems can be resolved and

hence company can use its distribution channel in best possible manner for

better market penetration

CONTENTS

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S.NO. PARTICULAR

 

Page No.1 INTRODUCTION TO INDUSTRY

2 INTRODUCTION TO THE ORGANIZATION3 RESEARCH METHODOLOGY

Title of the study Duration of the project Objective of the study Types of research Sample size and method of

selecting sample Scope of study Limitation of study

4 FACTS AND FINDINGS 5 ANALYSIS AND INTERPRETATION 6 SWOT 7 CONCLUSION 8 RECOMMENDATION AND SUGGESTION 9  APPENDIX10 BILOLIOGRAPHY

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CHAPTER-1

Introduction to Industry

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SOFT DRINK INDUSTRY IN INDIA

India with a population of more than 1.1 billion is potentially one of the largest

consumer markets in the world after china. The consumer market is popularly

known as the FMCG market or the fast moving consumer goods market. Soft

drinks come under this category. Soft drink is basically purchased in India

basically for two reasons namely to quench thirst and for refreshment. The

Indian economy currently is passing through a bullish phase with increasing per

capita income. Subsequently the lifestyle of the Indian consumer is also

changing with increased spending on entertainment, refreshment etc. that is

why soft drink companies are looking forward to India with great enthusiasm in

the future to increase their revenue.

The soft drink industry in India dates back to the 1940’s when Parle introduced

the first branded soft drink called gold spot. Cola giant Coca-cola was the first

foreign soft drink company to setup its shop in India in 1965. Coca-cola made a

very good beginning and dominated the market right from the word go. It faced

no competition at that time. The marketing people did not even need to

publicize Coca-cola. This extraordinary success of Coca-cola can be attributed

to the following factors,

Absence of contemporary competitive brand.

The giant image of Coca-cola in the western countries preceded their entry

into the Indian market.

Indians at that time were very fond of foreign goods.

Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca

in 1970. Before this they had introduced a cola flavored drink called pepping

which they had to withdrew in the face of stiff competition from Coca-cola. But

the overtly conservative Indian government of that time with special interest in

safe guarding the interest of the Indian companies started insisting that Coca-

cola should agree on the following points in order to continue in India. Coca-

cola decided to windup its operations in 1977 rather than bowing to the Indian

government. The main demands of the Indian government were –

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Dilution of equity, as the government felt that lots of foreign currency was

being wasted.

Manufacturing of the secret concentrate in India.

Disclosure of the chemical composition of the concentrate.

The exit of Coca-cola left a large vacuum in the soft drink market. But this also

accelerated the growth of several Indian soft drinks. Many new soft drinks like

frooti, jump-in etc. were launched in the form of tetra pack. However the bottling

plants and the distribution networks of these companies were not up to the

mark and left much to be desired. It took these Companies almost one year to

come up with new flavors like Campa cola, rush etc. To survive in the

industry.However Parle, the pioneer in the soft drinks market blazed its way to

national prominence with their product Thumps Up bearing the slogan ‘happy

days are here again’ which became a craze. This particular slogan helped to

win over the loyalists of Coca-cola who were in a state of cola shock or cola

depression! Soon the soft drink industry started registering phenomenal growth

rates and all parley products namely Gold Spot, Limca and Thumps Up became

the brand leaders in their own segments. In spite of this the soft drink market

had a huge untapped potential.In 1990, coming of the multinational brand Pepsi

and immediately started giving stiff competition to Parley and Coke. The parent

company of Pepsi was founded in 1890 at North Carolina in USA. Its CEO is

Roger Enrico. PepsiCo India Holdings Pvt. Ltd. in headquartered in Gurgaon

and its CEO is Ms. Indira Nooyi. In India it has 34 bottling plants of which 8 are

company owned bottling outlets (COBO) and 26 are franchise owned bottling

outlet (FOBO). SMV Beverages is a franchise owned bottling outlet. Coca-cola

reentered the Indian market in 1993 in collaborations with Parley India Ltd.

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Origin of Soft Drink in Jaipur

Late Charan Singh is credited with initiative to set up soft drink industry in the city.

He was a resident of Phagwara, Punjab and he used to sell soft drink in carts.

Domestic tension forced him to march to Jaipur 50 years ago to seek a living for

him. Then he set up his own machine and started bottling without any brand name.

Today his son Mr. Sunder Gurudev is carrying out the legacy, which his father had

left behind. This plant operates only 3 months (summer)..

The credit of establishing Jaipur in the soft drink map goes to late Dharamchand

Kamani.During the course of his business trips he was struck with the idea of

setting up of a soft drink industry in Rajasthan. June 1967 was significant for soft

drink industry in Jaipur.

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CHAPTER-2

Introduction to organization

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PEPSICO IN INDIA

PepsiCo gained entry to India in 1988 by creating a joint venture with the

Punjab government- owned Punjab Agro Industrial Corporation (PAIC) and

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 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 huge multinational companies." Indeed, some

argue that PepsiCo and The Coca-Cola Company have "been major targets in

part because they are well-known foreign companies that draw plenty of

attention." PepsiCo has grown to become one of the country’s leading 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.

PepsiCo India and its partners have invested more than U.S. $1 billion since the

company was established in the country. PepsiCo provides direct and indirect

employment to 185,000 people including suppliers and distributors

.

PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including

Pepsi Foods Ltd, Frito - Lay India, and Tropicana Beverages Company. The

company, through its subsidiaries manufactures, bottles, and exports fruit juices

and carbonated beverages and packaged snacks such as Lays, Ruffles, Fritos,

and Cheetos. PepsiCo India is based in Gurgaon, India.

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

eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s

expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda

and Mountain Dew, in addition to low calorie options such as Diet Pepsi,

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hydrating and nutritional beverages such as Aquafina drinking water, isotonic

sports drinks –

Gatorade, Tropicana100% fruit juices, and juice based drinks - Tropicana

Nectars, Tropicana Twister, Slice, and the new brand Nimbooz by 7up with real

lemon juice. Local brands - Lehar Evervess Soda, Dukes Lemonade and

Mangola add to the diverse range of brands.

In snacks segment- PepsiCo’s foods company, Frito-Lay, is the leader in

the branded salty snack market and all Frito Lay products are free of trans-fat

and MSG. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle

Chips and traditional snacks under the Kurkure and Lehar brands. The

company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted

snack options enhance the healthful choices available to consumers. Frito Lays

core products, Lays, Kurkure, Uncle Chips 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 34 bottling plants in India, of which 8 are

company owned and 26 are franchisee owned. In addition to this, PepsiCo’s

Frito Lay foods 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 its contribution to the country, consumers and farmers. 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, localized agri-base in India by leveraging

farmer’s access to world class agricultural practices. PepsiCo India worked with

farmers and State Governments to improve agri sustainability, crop

diversification and raise farmer incomes. PepsiCo helped transform the lives of

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thousands of farmers by helping them refine their farming techniques and raise

farm productivity, and customized solutions to suit specific geographies and

locations.

The most ambitious project is a joint program, launched in

1989, between PepsiCo India, the Punjab Agriculture University (PAU) in

Ludhiana and Punjab Agro Industries Corporation (PAIC) in Chandigarh. The

program focuses on evolving agricultural practices to help Punjab farmers

produce internationally competitive products. Over the last five years, PepsiCo

has also collaborated with the Thapar Institute of Technology to develop a high

quality potato seed program.

PepsiCo was a pioneer in the concept of contract farming

under which the company transfers agricultural best practices and technology

and procures the produce at a guaranteed price. 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

program, which includes seed production, has successfully evaluated the

following crops,

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.

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Under the program, 6 high-qualities, 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

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

Jharkhand West Bengal, Kashmir and Maharashtra for the supply of potatoes.

PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate

barley in a tie up with the United Breweries Group. PepsiCo India’s technical

team also implemented a high

quality seed program to deliver early generation and disease free seeds to

farmers. Tropicana: - Tropicana product is an American based company, and

was founded in 1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since

1998, it has been owned by PepsiCo, Inc. Pepsi offers the wide variety of

products to meet the choice and preference from fun for your items to the

products choices that contribute to healthier life style.

KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS PVT.LTD.

PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani

'Nimbooz by 7Up'

PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus Paani

'Nimbooz by 7Up'. The product, with real lemon juice, no fizz and no artificial

flavors’, will be available in three packaging formats of 200 ml returnable glass

bottles, 350 ml PET and 200 ml tetra packs, priced at INR 10, INR 15 and INR

10 respectively.

PepsiCo India Holdings Pvt. Ltd. to Launch Lemon Drink.

PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the

lemon drinks category and has plans to introduce a product under 7up brand

ahead of the summer season. The new product would be less carbonated and

is targeted at the mass market for on-the-move consumers.

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Headquarter : New York, U.S.

Area served : Worldwide.

Industry type : Food and non alcoholic beverages.

Products : Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice,

Tropicana products : Nimbooz juice, Aquafina, Fritos, Cheetos, and Lays.

Key person : Indira Krishnamurthy Nooyi (president), and (CEO)

Distribution channel is the chain of businesses or intermediaries through which a

good or service passes until it reaches the end consumer. A distribution

channel can include wholesalers, retailers, distributors and even the internet.

Channels are broken into direct and indirect forms, with a "direct" channel

allowing the consumer to buy the good from the manufacturer and an “indirect"

channel allowing the consumer to buy the good from a wholesaler. Direct

channels are considered "shorter" than "indirect" ones.

A Distribution channel is the most important part of the

Beverage industry, especially in India where more than 60% population live in the

rural areas or outside of the main cities so it is not easy to continuous or timely

distribution of products to the end users.

Most firms, particularly large organizations with multiple divisions or business units

like PepsiCo, mainly focus on the effective implementation of distribution channel.

PepsiCo’ distribution strategy specifies:-

What (Objective to be accomplished)

Where (On which product-market to focus)

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How (which resources to allocate and which activities to perform to each

product- market to meet environmental opportunities and threats and to gain a

competitive advantage).

In this project we studied the distribution channel management of PepsiCo

product in uttar pradesh. Generally distribution system deals with the

effectively reach of your product to the consumers and how to divide the areas

in different sub areas to cover as much consumers as possible whereas this

project focused on improving the distribution channels.

Apart of this, project also includes a survey on analysis of the effectiveness of

the distribution channel of the company as compare to the nearest rival coca

cola.

Company Name and Introduction

“VARUN BEVERAGES Pvt. Ltd.”

Introduction:

Varun beverage Ltd. was the new start, which was born in 1999 among in

jaipur group.Mr. Ravi Kant Jaipuria launched the best biggest plant among

all other plant, which comes under jaipuria Group.this is the rising sun of

jaipuria Group.Mr.Ravi Kant jaipuria who is the chairman of this bottling plant

has good result.

The main object of this is manufacturing, production, selling,

distribution and bottling of beverages a created water soft drink etc. Mr Ravi

Kant Jaipuria got best PEPSI bottler award in 1998 for the best bottler of the

world. The best Pepsi award is th highest honorable award to any franchisee.

The complete new plant Varun Beverage Ltd. Has structured in

plot number 477-477, 107 K.M, stone Agra-Delhi National highway, village

Dautana, tehsil- chhata, Disst-Mathura,uttar Pradesh. This is not only the

bottling plant here,pet bottles are also manufactured. The present filling

capacity of this plant is 1000 bottles per minutes with two lines.

The two lones are glass bottles lines. One more line is of pet bottled

and its capacity is 85 bottles per minute. The annual capacity of this plant is

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around 95 Lacks create bottled soft drink. The end product of this plant is

bottled carbonates soft drinks. The beverages market under different brands

named as Pepsi, mirinda lemon, mirinda orange,7up mountain dew, lehar

soda and slice. Varun Beverage is growing to new height, annual turn over of

plant is abiut 110 crores.

JAIPUR MARKETING COMPANY

In this unit, the head of sales and Marketing is in charge of all the marketing

activities i.e. sales promotion, Publicity, Advertisement, Market Survey. Though

his main function is to have a control over the outlets distribution.

ENVIRONMENT SCANNING:

The process by which organization monitors their relevant environment to

identify opportunities and threats affecting their business are known as

environment scanning.

The external environment in which Varun Beverages Pvt. Ltd. exists consists of

a bewildering variety of factors. These factors (may also be termed as

influences) are events, trends, issues, and expectation of different interested

groups. These factors are explained below.

Events are important and specific occurrences taking place in different

environment sectors.

Trends are the general tendencies or the courses of action along which

events take place.

Issues are the current concern that arises in response to events and trends.

Expectations are the demands made by interested groups in the light of their

concern for issues.

By monitoring the environment though environmental scanning, the VARUN

BEVERAGES Pvt. Ltd. considers the impact of the different events, trends,

issues, and expectation on its strategic management process. Since the

environment facing organization is complex and its scanning is absolutely

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essential, strategist has to deal cautiously with the process of environmental

scanning is collected systematically. Information related to markets and

customers, the changes in legislation and regulations which have a direct

impact on an organization’s activities, government policy statements pertaining

to VARUN BEVERAGES Pvt. Ltd. business and industry and so on, could be

collected continuously to monitor changes and take the relevant factors into

account.

VARUN BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal

with specific environmental issues from time to time. Such studies may be

conducted, for instance, when VARUN BEVERAGES Pvt. Ltd. has to undertake

special projects, evaluate existing strategies, or devise new strategies.

Changes due to unforeseen development may also be investigated with regard

to their impact on the organization. Today Varun Beverages Pvt. Ltd. stands

as a proud monument the great visionary its founder Late D.N. Kamani and

strides forth towards progress and prosperity for the fulfillment of the ideas of its

revered founder.

Chemicals

CO2 gas (in carbonated soft drinks)

The below four ingredients are added with the first ingredient i.e. water and cold

drink is prepared. Here in Varun Beverages Pvt. Ltd. Jaipur also the same

ingredients are used to prepare Pepsi and its’ other brands. All these

ingredients are added at different stages by different processes. The diagram in

the next page represents the flow or sequence of steps involved in Varun

Beverages Pvt. Ltd. Jaipur for manufacturing of Pepsi products. Pepsi products

are available in different SKUs (stock keeping units) or packs, e.g. glass bottle,

pet bottle, metal can, tetra pack etc. the preparation of main liquid or drink is

same but the machines and equipments used for filling in different SKUs are

different.

During my visit to Varun Beverages Pvt. Ltd. Jaipur, I saw

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1. Water treatment plant, where water is purified.

2. Bottle washing plant, where used glass bottles are washed

3. Syrup room, where syrup is prepared from sugar.

4. Bottle filling plant, where bottles are filled with the final product.

5. Acid room, where caustic soda is kept, which is used for cleaning the

equipments and pipelines after every batch of production.

6. Yard for keeping empty bottles and ware houses for storing the filled bottles.

The brief introduction of each plant is given below.

1. Water treatment plant:

Water In Varun Beverages Pvt. Ltd. Jaipur, is coming from the Bandi river. It is

stored in a reservoir. This raw water is being treated in the water treatment

plant, before the production process starts. Coagulation process is used here

for this purpose. Main chemicals used are ferrous sulphate (FeSO4), calcium

hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these

chemicals in the treatment tank and becomes turbid. All the impurities get

settled at the base and remove the turbidity. Then, it is sent to the carbon tank

where all the microorganisms and chlorines are removed. The water so

obtained is completely free from any kind of impurities and used in further

processing. The maximum alkalinity maintained until as much as 50 ppm.

2. Bottle washing plant:

Used bottles returning from the market are stealthy. Before filling these empty

bottles with new product, these bottles are passed through the bottle washing

plant where these dirty bottles are washed. It is completely an auto process

which takes place within a machine called washer machine. The machine has

three compartments. Bottle for washing are placed on the conveyer come inside

the machine and get successive treatment. Bottles are treated with 4% caustic

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soda in the first compartment at a temperature of 100-150Û C. Next these are

conveyed to the second compartment, where bottles are again washed with hot

water at a temperature of 80-100Û C, in the third compartment bottles are

treated with cold or normal water at room temperature. Time duration in each

compartment is 10 minutes. Bottles are then sent through the inspection center,

where these are closely watched against white rays of light. Bottles containing

any dust or other unwanted things are removed from the line here.

3. Syrup room:

Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals

in a specified ratio into a closed container. The temperature of this prepared

sugar remains between 80-100ÛC. This syrup contains some impurities as,

sometimes there are some impurities presents in sugar, so this syrup is filtered

to remove all those contaminations. Before storing in syrup tanks this syrup it is

passed through the cooler where syrup temperature is reduced to 25-30ÛC.

This temperature is maintained throughout the whole process. Here next flavors

are added at a specified quantity with the syrup used for preparation of Pepsi or

other brands.

4. Bottle filling plant:

Next, for preparation of carbonated soft drinks brands like Pepsi, mirinda, 7UP,

and mountain dew, carbon dioxide gas ( CO2) is mixed with this prepared

solution. And for the brand like slice, fruit pulp is added. Now the solution is

ready for filling into the bottles. The washed empty bottles are filled by

automatic filler machine. This machine can fill 60 bottles in one minute. After

filling, crowns or caps are fitted on the filled bottles with the help of crowning

machine. Now these filled bottles are ladled and then sent for packing and

storing in the godowns.

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5. Acid room:

There are three tanks in this room. The first tank contains caustic soda, the 2nd

tank contains hot water and the third tank contains cold water. After finishing

every batch of production the whole production lines and containers/tanks are

washed. And for this purpose, first of all caustic soda is passed through the

pipeline, next hot water and at the last cold water.

6. Yard for keeping empty bottles:

Varun Beverages Pvt. Ltd. Jaipur has a large area in side its premises. A

large .part of its open area is used for keeping the empty bottles.

7. Warehouse:

Varun Beverages Pvt. Ltd. Jaipur has its own warehouse in side its premises

for storing the produced products. The produced products are sent to the

customers from these warehouses. For transferring the filled bottles inside the

company fork-lifts are used.

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Packaging Process

PepsiCo is an industry leader in packaging- helping to promote and implement

standards for sustainable packaging

PepsiCo distribute the products in a variety of packages, each carefully

designed to deliver convenience and appeal to the consumers while protecting

the integrity of the products. The team of engineers and packaging suppliers

are dedicated to finding preferable designs, and are working continuously

towards improving the packaging performance while reducing the packaging

footprint. PepsiCo are committed to bringing the environmental responsibilities

to all areas of the business. PepsiCo are continuously improving the

environmental programs and exploring solutions to environmental challenges

through socially responsible, scientifically based and economically sound

methods. Pepsi pass this commitment along to his suppliers and the consumers

in an effort to do our part. The goals are to design and develop packaging

systems that are environmentally responsible throughout their entire life cycle,

inspire consumers who want to live more environmentally sustainable lives by

promoting recycling, and partner with leading organizations to promote

sustainable packaging and recycling practices. Through ongoing engagement

with the packaging suppliers, we are working towards a position where all of our

operations use the most environmentally suitable packaging available in their

country of operation.

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PepsiCo follow five principles of sustainable packaging design:

Reduce Using less material in the packaging, to conserve natural resources.

Reuse increasing use of reusable packaging and increasing the amount of

recycled material in the packaging.

Recycle Designing packaging for recycling and developing biodegradable and

compostable packaging solutions.

Remove Eliminating environmentally sensitive materials and processes from

the packaging.

Renew Increasing use of renewable resources.

In an effort to meet his goals, PepsiCo have launched a global sustainable

packaging

policy and formed a Sustainable Packaging Council dedicated to:

Developing sustainable packaging strategies, goals, and targets

Developing alternative packaging material technologies

Supporting responsible disposal practices.

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PRODUCT PROFILE:

Brand Name Flavors SKU Volume

PEPSI

GlassGlassPetPetPetCanCan

200 ml300 ml600 ml1.5 l2.0 l250 ml330 ml

MIRINDAOrangelemon

GlassGlassPetPetPetCan

200 ml300 ml600 ml1.5 l2.0 l330 ml

7UPGlassGlassPetPetPetCanCan

200 ml300 ml600 ml1.5 l2.0 l250 ml330 ml

SLICETetra PackGlassGlassPetPet

200 ml200 ml250 ml500 ml1.20 l

MOUNTANDEW

GlassGlassPetPetCan

200 ml300 ml600 ml2.0 l

350 ml

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DIET PEPSI

PetCan

600 ml300 ml

TROPICANA

Pineapple,Mixed fruit,

Mango nectar,Guava nectar,

Lychee,Peach,

Strawberry,Orange nectar,

Grapes.

Tetra packTetra pack

200 ml1.0 l

TWISTER Orange PetPet

350 ml1.20 l

NIMBOOZ LemonTetra packGlassPet

200 ml200 ml350 ml

AQUAFINA

PetPetPet

500 ml1.0 l2.0 l

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CONCEPTUAL BACKGROUND

“Marketing channels are sets of interdependent organization involved in the

process of making a product or service available for use or consumption.”

The main objective of the marketing process is to distribute the products to the

actual users. This function involves a number of sub-functions to be performed

by a producer or manufacturer. These two functions are most important first, the

creation of demand is made through the process of advertising and sales

promotion activities. On the other hand the distribution through the channels of

distribution. The decision relating to the channel of distribution is a very

important decision from the firm point of view because the selected channels

affect considerable other marketing decision. Such decisions are of long term

nature and exercise their impact on the cost structure of the firm also.

By channel distribution mean the intermediaries or the process through which

the goods products are transferred from the producer to the ultimate users.

Now a day any of the producers possibly do not sell their goods directly to the

final users. There are a lot of intermediaries between producers and consumer,

bearing a variety of name performing various kinds of function. Some

intermediaries like wholesalers and retailers buy and resale taking the bill. They

are known as merchant middle men and other are brokers, representative sales

agent who seeks or search for customers and negotiate on the behalf of the

producer but do not take of goods. These are called as middlemen.

The manufacturer and its distributive outlets share common objective to sell the

manufactured products at a profit. No doubt its objective differs with the

marketing circumstance. Even though many variation of specific objective fits

into some categories. These are as follows:-

To built distribution network loyalty

To stimulate distribution

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To develop managerial efficiency in distribution organization

To identify the source of supply for the product line at the final buyer’s level.

The channel of distribution is a structure which organized and presents a choice

among alternative channels of distribution of the different marketing situations faced

by retailers, whole sellers and producers within the structure. It may be considered

as series of function which must be performed in order to make producers

efficiency.

To bearing maximum profits of all institutions concerned a channel of distribution

should be treated as a unit of total system of action. The activities of the

manufacturer need to be coordinated with these middlemen used in the distribution

of given product.

The important of middlemen in channel of distributional can be over emphasized.

Collects concentrate the output of various producers,

subdivides these into lot desired by the customers gathers various items

together

in the assortment wanted and

Disperses the assortment to consumer industrial buyers.

The role of middlemen that of specialist in concentration equalization and

dispersion

besides he side in the creation of the time from and procession utilities.

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Types of Marketing Channels

1. Direct marketing channel: A marketing channel that has no intermediaries

level

2.Indirect marketing channel: Channels containing one or more intermediaries

Marketing Channels

Channel 1. Manufacturer………………………………………………..…

Consumer

Channel 2. Manufacturer……………Retailer……………………………

Consumer

Channel 3. Manufacturer……...Wholesaler………….Retailer…………

Consumer

Channel 4. Manufacture…….Wholesaler……Jobber……

Retailer…….Consumer

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CHANNEL DYNAMICS

Distribution channel do not stand still. New wholesaling and retailing institution

emerge and new channel system evolves. There are four types of marketing

channels.

1. Conventional Distribution Channel

A Channel consist one or more independent wholesaler and retailers. Each is a

separate business seeking to maximize its own profits even if this goal reduces

profit for the system as a whole. No. of channel members has complete or

substantial control over the other members.

2. Vertical Marketing Channel

This is most recent marketing channel. A distribution channel system as

producers, wholesaler and retailers act as unified systems. One channel

member, the channel captain owns the others or franchises them or has so

much power that they all co-operate. The channel captain can be the producer,

the wholesaler or the retailer.

3. Horizontal Marketing Channel

A distribution channel system in which two or more unrelated companies put

together resources or programs to exploit an emerging marketing opportunity.

4. Multi Channel Marketing

In the past, many companies sold to single market through a single channel.

Multichannel marketing occurs when a single firm uses two or more marketing

channels to reach one or more customer segments.

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WHOLESALER

Wholesaler acts as a connecting link between manufacturer and retailer and

other merchants. Wholesalers buy the goods from manufacturer and resell the

same to the retailers. Normally, Wholesaler do not cater the small requirements

of the ultimate customer but he can entertain large requirement of industrial

customers.

DEALERS and DISTRIBUTORS

Dealers normally buy and resale products at wholesale or retail level. Whereas

distributor is the term used for wholesaler.

RETAILING

Includes all the activities involved in selling goods or services directly to final

consumers for personal non-business use. A retailer or retail store is any

business enterprise whose sales volume comes primarily from retailing.

Retailers are the last but not the least in the marketing channel through whom

the eventual transfer of ownership of goods take place. The use of retailer boils

down to their superior efficiency in making goods widely available and

accessible to target markets. In most of the cases the retailers performs the

important functions mentioned as under.

1.Information

2. Promotion

3. Negotiation

4. Ordering

5. Financing

6. Risk Taking

7. Physical Possession

8. Payment

9. Title

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The major types of retailer are as following:-

1. Specialty Store: - They sell narrow product line with deep assortment.

2. Departmental stores: - They sell several product lines with each line

operated as separate department managed by specialist buyers or

merchandisers.

3. Super market: - They are relatively large, low cost, low margin, high volume

self service operation designed to serve total needs for food, laundry and

household maintenance product.

4. Convenience Store: - These are relatively small store located near

residential areas, open long hours, seven days a week and carrying an united

lines of high turnover convenience products at slightly higher prices.

5. Discount Store: - These sell standard merchandise at lower prices with

lower

margins and higher volumes.

6. Off price Retailers: - These sell the merchandise which are bought at less

than regular wholesale prices and sold as less than retail. These may be of

three types mentioned as under:

a) Factory orders

b) Independent off price retailers

c) Warehouse clubs (Wholesale clubs)

Channel of Distribution of Varun Beverages Pvt. Ltd.

To make its products available at the right places at the right time in the market,

the sales department of the company pays major attention on controlling the

channels of distribution.

Single type of markets channel is maintained by the company right from its

Pioneering stage. The nature of the channel is as follows:-

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Company

Distributors

Retailers

Consumers

At first the soft drinks supplied to the distributors directly. Retailers or owners of

any outlet cannot take the delivery from company. They have to take the

products from their respective or nearest distributor.

There are about 50 distributors and innumerable number of retail outlets

operating with the company in its entire market areas which contains total

Jharkhand. In all the important places of entire territory this company has its

distributors.

These distributors selected on the basis of assurance given by them regarding

the minimum sales which they have to maintain annually. The selection is also

done on the basis of the financial position and reputation of distributor in the

market. As for example in appointing a distributor first engaged in soft drink

business second priority is given to those people who are in cigarette selling

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business. Depending upon the market, each distributor in the initial stage has to

deposit some security money.

The retailers are selected by the distributor fixed criteria for the selection or

appointment or retailers from the side of the distributor. Any one like Panwala,

Cigarettewala or any other shopkeeper can have the stall for the sale of soft

drinks and they are called retailers or outlet owners. They have to give

assurance to the concerning distributor for better sale and at the time of taking

delivery they have to deposit the security i.e. the charges if the empty bottles

with specified retailers purchasing price. The charges if the empty bottles with

specified retailers purchasing price. The distributor at first has to seek the

permission of sales department for the number of cases of soft drinks required

by them. After getting the proper authority from sales department paying the

requisite amount either cash or demand draft.

DISTRIBUTOR

Distributors are one of the important middlemen in the channel of distribution

who deals with the goods in bulk quantity. They buy goods in bulk from the

producers and sell them in relatively smaller quantities to the retailers. In some

cases they also sell goods directly to the consumers if the quantity to be

purchased is more.

RETAILERS

Retailers are the traders who buy goods from wholesalers or distributor or

sometimes directly from the producers and sell them to the consumers. They

usually operate through a retail shop and sell goods in small quantities. They

keep a variety of items of daily use.

WAREHOUSING

Every company has to store its finished goods until they sold. A strong facility is

necessary because production and consumption cycles rarely match.

Warehousing is not a simply storing activity but a package of services that

enables the smooth running of the industry.

The stores must be in constant touch with the use department in order to

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provide uninterrupted services to the manufacture and its decision since

working capital is locked up in the warehousing stores in equal to money.

The stores functions can be organized in the following manner:-

a) To receive raw material components equipments etc.

b) To meet the demand of use department by issuing the order

c) Accounting the transaction properly.

d) Minimizing obsolescence surplus and scrap by right identification and

using correct preservation method.

The company supply finished products frequently to different distributors as per

the demand.

Every distributor keeps a minimum stock of different products of the product line

so that the uninterrupted supply could not affect. In the industrial sector service

of optimization where boils down to any exercise of optimization where limited

available resources are to be distributed equitably. The problem arises from the

material that are in stock the form of capital cost, storage loss, pilferage

obsolescence, insurance, handling, documentation etc. Services level that can

be maintained and hence the concept stores in money should be understood by

everybody in the organization.

INVENTORY DECISION

(1) Branding and Packaging

Out of the total market activities some are directly performed and controlled by

“Varun Beverages Pvt. Ltd.” itself some are followed according to the standing

instruction of “Pepsi Foods Pvt. Ltd.

So far as the process of branding and packaging is concerned the “Varun

Beverages Pvt. Ltd.” Along with the authorized bottle in India adopt the same

pattern.

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(2) Wholesaling

Wholesaling includes all the activities involved in selling goods or services to

those who buy for resale or business use. Manufactures use wholesalers

because wholesalers can perform function better and more cost effectively than

the manufacture can. These functions are not limited to selling and promoting,

buying and assortment building bulk barking, warehousing, transporting

financial risk bearing dissemination of marketing information and provision of

management services and consulting. Like retailers wholesaler must decide on

target market, product assortment and services promotion and place. The most

successful wholesalers are those who adopt their services to meet and target

customer’s needs, recognizing that existing to add value to the channel.

(3) Retailing

Retailing includes all the activities involved in selling goods or services directly

to find consumer for their personal non-business use. A retailer or retail store is

any enterprise which sales volume comes primarily from retailing. All marketer

retailers must prepare marketing plans that include decision on target market.

So the marketing channels can be viewed as a set of interdependent

organization with high potential for conflict. Then why would any business

chosen to become part of channel system.

TRANSPORTATION

Transportation is life blood of business management and commerce. The

purchase office’s job in incomplete until and unless he ensures that the material

is shipped from the vendor’s premises located in different areas to his

organization. Purchasing the transportation is a key element in his job

particularly in the context of the transportation cost.

In deciding to transporting models shippers can choose from private contract

and common carriers.

Transport decisions must consider the complex tradeoff between various

transportation mode and their implications for other distribution elements such

as warehousing and inventory.

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VISION AND MISSION OF THE ORGANISATION

VISION

“To build India’s leading total beverages company, delighting consumers by

best meeting their everyday beverages needs, and stakeholders, by delivering

performance with purpose, through our talented people”.

PepsiCo Sustainability Vision

“PepsiCo’s responsibility is to continually improve all the aspects of the world in

which we operate – environment, social, economic- creating a better tomorrow

than today”

MISSION

“To be the world’s premier consumer products company focused on

convenience food and beverages. We seek to produce healthy financial

rewards to investors as we provide opportunities for growth and enrichment to

our employees, our business partners and the communities in which we

operate. And in everything we do, we strive for honesty, fairness and integrity.”

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Chapter-3

Research & Methodology

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3.1 TITLE OF THE STUDY:

“DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO

PRODUCTS “

3.2Duration of the project

Duration of project is 45 days.

3.3 Objectives of the study

To know the distribution strategy adopted by company.

To know the problems of Retailers during distribution.

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

To find out the per day sale of PepsiCo products.

To find out the retailer satisfaction about regular supply of soft drinks

services provided by the company.

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3.4 TYPES OF RESEARCH

PRIMARY DATA:-

It was collected by surveying the retailers in the four areas of Ranchi.

Ram nagar

Retailers

Arya nagar

Delhi Agra HIGHWAY

Kosi kalan

Market survey

Market survey is one of the most widely used marketing research techniques.

Its purpose is collection of specific data concerning to the market that cannot

come from the company’s internal records or from external published source of

data. The only way to get accurate data regarding the target market is by

physically moving around in that area along with the1 Pepsi vehicle. There are

various types of surveys out of which the one that I used was the census

survey. The report on marketing activities of Varun Beverages is based on a

survey which is known as a:

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Dealer survey (retailer survey)

Dealer survey or retailer survey is one of the most accurate methods to known

about the overall condition of a company and it is especially true for soft drinks

companies. Soft drink market is typically characterized by changes in the stock

position every day.

In order to have a good knowledge about the market and the route it was

important for me to move along with the Pepsi vehicle. This helped me to know

about:

1. Number of Retailer in the Ram nagar, kosi kalan, Delhi agra highway, arya

nagar areas.

2. Location of the Retailer

3. Type of Retailer

Learning in the classrooms and learning practically are two different things. So

for the first 10 days I moved along with the Pepsi vehicle interacting with the

retailers and trying to build up a rapport with them. From this I also came to

know how to deal with different types of retailer and how to convince them.

Feedback from the retailers helped me to find out where the Company was

lacking in terms of service provided and also how the competitors fared on the

same parameters. These feedbacks help the company to improve its services

and as such increase retailer satisfaction which in turn results in better sales

and revenue generation. Thus appropriate marketing strategies can be worked

out based upon the finding.

Tools and Techniques used for the collection of Primary Data

 A questionnaire was formulated and circulated to the retailers. Hence the

survey method is the tool used here for data collection.

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2) SECONDARY DATA: -

It was collected from, General library research source like marketing book.

Advertising journals like magazines and newspaper.

Internet: PepsiCo website, Wikipedia.

3.5 SAMPLE SIZE AND METHODS OF SAMPLING

Sample Size: 150

Sampling Method: Non –probability sampling (Convenience sampling)

Place of Study : kosi kalan(Mathura)

3.6 SCOPE OF THE STUDY

The main scope of this study is to ascertain the effectiveness of channel of

distribution and analyzing the PEPSICO’S performance. This study will be

also applied to analyze the problem faced by retailers and to know about

delivery of PepsiCo’s products satisfactory or not.

3.7LIMITATION OF THE STUDY:

Time constraint -The study was conducted in a short period of time and a

detailed study was not possible.

Cost constraint -This being an academic study suffers from cost constraint.

 Area constraint -The area of study is limited to only Ranchi city.

 

Sample constraint -The sample size was not large enough as planned, as the

time factor was the key limitation in the study.

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Confidential constraint -Due to confidential constraint certain information, not

all details could be obtained.

Chapter-4

Facts & Findings

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Findings

The Delivery of PepsiCo product are about to be timely.

Company executive timely visited in the outlets.

They timely inform about the schemes.

Some of the visi-cooler provided by company is not functioning properly,

complaints regularly, are entertained after a long time.

Maintaining good relationship with retailers is very important for having a strong

distribution channel.

The Advertisement and Presence of soft drinks affect the sales most.

Customers less prefer the taste of the PepsiCo’s product.

Problems which Retailers are facing:-

Company not repairs the visi-coolers timely.

Retailers do not want that company provides the same schemes to all

retailers.

PepsiCo has less flavors and Retailers have a few option to sell the

products.

Many times wholesalers not mention the schemes which are given by

PepsiCo company.

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Chapter-5

Analysis & Interpretation

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Q-1 What kind of outlets has been used by you?

S. NO.

Particulars No of Respondent

Percentage

1 Grocery 20 13%

2 Convenience outlet

75 50%

3 Eatery 55 37%

Total 150 100

13%

50%

37%

Types of outlets

GroceryConvenience outletEatery

INTERPRETATION: From the above table it can be observed that 50% are

convenience outlet, 37% are Eatery and 13% are Grocery.

It shows that the Convenience outlets are large in number and also the sale of

soft drinks is more in the convenience outlet than the other outlets.

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Q-2 what is the proportion of different companies soft drinks are available to you?

S. NO.

Particulars No of Respondent

Percentage

1 PepsiCo 15 10%

2 Mix (PepsiCo & Coca Cola)

135 90%

Total 150 100

10%

90%

Respose of Retailer

PepsiCoMix

INTERPRETATION: From the above table it can be observed that 90% of outlets have both coca cola and PepsiCo products while only 10% of them have only PepsiCo products. It shows that the mix outlets are more than the PepsiCo exclusive.

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Q- 3 Which is the most demanding soft drinks company by the customer?

S. NO.

Particulars No of Respondent

Percentage

1 PepsiCo 65 43%

2 Coca cola 85 57%

Total 150 100

43%

57%

Response of the Retailer

PepsiCOCoca cola

INTERPRETATION: If we see the table then we find that 57% customers prefer Coca cola and 43% prefer PepsiCo. In this we find that after having different products in PepsiCo, it can’t able to capture the market.

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Q-4 Is Schemes given by company are satisfactory?

S. NO.

Particulars No of Respondent

Percentage

1 Yes 135 90%

2 No 15 10%

Total 150 100

INTERPRETATION: From the above table it can be observed that 90% of the retailers are satisfied with the calls by a company during scheme timings and 10% are not satisfied with the calls. It shows that the company timely informing about the schemes to the retailers.

49

90%

10%

Response of Retailer

YesNo

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Q-5 Is that true that ‘’demanded product is available most’’?

S. NO.

Particulars No of Respondent

Percentage

1 Yes 105 70%

2 No 20 13%

3 sometimes 25 17%

Total 150 100

70%

13%

17%

Response of Retailer

YesNosometimes

INTERPRETATION: From the above table we find that out of 100% retailers only 70% retailers are agree to say whatever brand they demanded they easily get that while 17% retailers are saying that they sometimes getting the demanded brand but 13% retailers are saying that they are not getting their favorite brand whenever they needed or demanded more. Here area of concern that how company can make happy those retailers who don’t receive their stock in time. They should provide all the retailers on time, which help to make good distribution channel and well as build the positioning of the company.

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Q-6 Are you Satisfied with the delivery procedure of PepsiCo Products.?

S. NO.

Particulars No of Respondent

Percentage

1 Yes 120 80%

2 No 30 20%

Total 150 100

80%

20%

Response of Retailer

YesNo

INTERPRETATION: From the above table it can be observed that 80% of the retailers satisfied with the delivery of PepsiCo product and 20% of retailers are not satisfied with the delivery. The data shows that company have good distribution channel but should focus more on their distribution channel and try to satisfied more by providing them better services.

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Q-7 How many times a PepsiCo product has been purchased by you from distributor in a month?

S. NO.

Particulars No of Respondent

Percentage

1 0-5 times 45 30%

2 5-10 times 45 30%

3 More than 10 60 40%

Total 150 100

30%

30%

40%

Response of Retailer

0-5 times5-10 timesMore than 10

INTERPRETATION: If we see the table then we find that only 40% respondent are purchasing more than 10 times from the distributor in a month, 30% respondent are saying that they purchasing 0-5 times in a month and 30% of them saying that they purchasing 5-10 times in a month. Here we find that the 40% retailers purchasing the product more than 10 times, it means sale of soft drinks is quite satisfactory.

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Q-8 What kind of Factors affect the sales most?

S. NO.

Particulars No of Respondent

Percentage

1 Advertisement 60 40%

2 Scheme 5 3%

3 Presence 45 30%

4 Taste 40 27%

Total 150 100

40%

3%30%

27%

Response of Retailer

AdvertisementSchemePresenceTaste

INTERPRETATION: From the above table we can find that 40% respondent says that advertisement is major factor that affect the sale most while 30% of respondent says that presence is a factor that affect the sale most while 27% says taste is a factor and 3% says the scheme is a factor that affect the sale most. This proves that advertisement and presence play an important role in attracting the customer.

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Q-9 ‘’PepsiCo has good relationship with the you’’ give your views?

S. NO.

Particulars No of Respondent

Percentage

1 Strongly Agree 45 30%

2 Agree 70 47%

3 Disagree 35 23%

Total 150 100

30%

47%

23%

Response of Retailer

Strong AgreeAgreeDisagree

INERPRETATION: From the above table it can be observed that 47% of the retailer’s agrees that PepsiCo has a good relation with them and 30% strongly support the statement while 23% of the retailer was against the statement means they said PepsiCo doesn’t have good relation with them. It shows that company should think that how can they maintain better relationship with every retailers.

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Q-10 Are you Satisfied with the maintenance work of refrigerator done by PepsiCo?

S. NO.

Particulars No of Respondent

Percentage

1 Highly Satisfied 10 7%

2 Satisfied 35 23%

3 Less satisfied 25 17%

4 Not Satisfied 50 33%

5 Can’t say 30 20%

TOTAL 150 100

.

7%

23%

17%33%

20%

Response of Retailer

Higly satisfiedSatisfiedLess satisfiedNot satisfiedCan't say

INTERPRETATION: From the above table it can be observed that 33% retailers are not satisfied with the maintenance work of refrigerator done by company while 23% retailers are satisfied, 20% can’t says, 17% retailers are less satisfied and 7% are highly satisfied. It means company is not focusing on the

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maintenance work of refrigerator thus the customer are not able to get the chilled soft drinks this may reduced the sale of the company.

Chapter-6

Swot Analysis

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STRENGTHS:-

PEPSICO has an excellent brand image.

Retailer friendly schemes.

Continuous & strategic improvements in the promotional strategies.

Strong dealer network.

PEPSI has got goodwill in the market with regard to the brand name.

It has a very wide product mix.

Large number of celebrity endorsed.

A very good sales force.

WEAKNESSES:-

PEPSI not able to keep the retailers satisfied as they are not providing with the

coolers on time as compared to others

Interior part of the city is not looked after as the main city as the roads are not

good enough for the vehicles to reach there.

Support material not provided to the retailers as being provided by the

competitor.

PEPSI has only cola flavor where its competitor has coca cola has coke and

Thumps up.

Its one of the Popular brands PEPSI in cola flavor is lagging behind with its

nearest competitor only due to high sugar content and less thrilling.

More emphasis is given to larger dealers.

In terms of Stands, Dealer board, and other Add. Material others are ahead of

PEPSI in Ranchi.

OPPORTUNITIES:-

Consumers are showing increased interests in PEPSI products.

Promotional activities provide it an edge over the competitors.

Top position in C.S.D. products in India gives it an advantage.

Pepsi can explore its distribution network in interior area also.

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THREATS:-

Some dealers are not very satisfied with the services of Pepsi which directly

affect the sale of product.

Competitor’s products already available in the market with similar schemes.

Tough competition from others.

Strategic pricing by competitor may affect the company’s margins.

Pesticide controversy taking away the consumer. Many religious Guru asking

their followers not to consume soft drinks.

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CHAPTER-7

CONCLUSION

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CONCLUSION

PepsiCo was found by CELEB BRADHAM in 1902 at North Carolina in USA, its

present CEO is INDIRA NOOYI and PepsiCo. India holding chairman is Mr.

RAJIV BAKSI. In India it has 34 bottling plant of them 8 are COBO and 26 are

FOBO, in which one is in (Mathura) Varun Beverages Pvt. Ltd.

chhata(Mathura). is a franchise owned bottling plant (FOBO), producing Pepsi

range bottled soft drinks.

The conclusion of this project report is that PepsiCo products are profitable and

having good distribution channel but should focus more on their distribution

channel and try to satisfied more by providing them better services. Pepsi still

had some distance to cover to catch up with Coke.

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Chapter-8

Recommendation and

Suggestion

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RECCOMONDATION & SUGGESTIONS

This is one of the most important and most difficult part of study. I arrived a certain

recommendation for a company after the analysis of data, some of the

recommendations are as follows:-

A complain Register should be provided by the company to every distributor in

every route so that, retailers/customers can write their problems. The complain

register should be checked by consumer executive and depot in charge at time

to time.

All brands should be making available in all outlets. The distributor can do this

with timeliness delivery. Availability will increase visibilities, which in turn

increase the sale.

Pepsi distributor can convince the more retailers for entering into agreement for

exclusive outlet with some extra benefit.

Immediate response should be given to the problems related to the visi coolers,

supply and also come up with the new strategies to cater the retailers as well as

consumers.

The damage Product should be replaced as soon as possible.

The Sign board should be provided to all the Retailers.

Another brand of Cola flavor should be introduced and it should have strong

taste and more fizz so as to attract the customers who like Thumps up more

than Pepsi.

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Chapter-9

Appendix

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APPENDIX

(1) Which type of outlet?

(a) Grocery

(b) Convenience outlet

(c) Eatery

(2) Which company’s soft drinks are available in the outlet?

(a) PepsiCo

(b) Mix

(3) When a customer comes to your shop which company’s soft drinks does he/she demands?

(Rank them)

(a) PepsiCo

(b) Coca Cola

(4) What is the frequency of the visit of PepsiCo executive?

(a) Daily

(b) Alternate Day

(c) Weekly

(5) Did you satisfied with the calls by company during scheme timings?

(a) Yes

(b) No

(6) Which Company’s route vehicle comes first to you?

(a) PepsiCo

(b) Coca cola

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(7) Do you get your favorite brand or product whenever you need or demand more?.

(a) Yes

(b) No

(c) Sometimes

(8) Are you satisfied with the delivery of PepsiCo Products?

(a) Yes

(b) No

(9) How often you purchase the product from distributor in a month?

(a) 0-5 times

(b) 5-10 times

(c) More than 10

(10) Number of carets sold per month of soft drinks?

(a) 0 - 50 carets

(b) 50 to 100 carets

(c) Above 100 carets

(11) Which factors affect the sale most?

(a) Advertisement

(b) Scheme

(c) Presence

(d) Taste

(12) PepsiCo has good relationship with the Retailers?

(a) Strongly Agree

(b) Agree

(c) Disagree

(13) Which company’s Visi-Cooler do you have?

(a) PepsiCo

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(b) Coca Cola

(c) Both

(d) Own

(14) Are you satisfied with the maintenance work of refrigerator done by PepsiCo?

(a) Highly Satisfied

(b) Satisfied

(c) Less Satisfied

(d) Not Satisfied

(e) Can’t say

(15) Have you been provided with sign board/display rack by PepsiCo?

(a) Yes

(b) No

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Chapter-10

Bibliography

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BIBLIOGRAPHY

BOOKS:

Philip Kotler, Marketing Management

G.C Beri, Marketing Research

C.R. Kothari, Research Methodology

Web SITES:

www.google.com

www.wikipedia

www.pepsico.com

ABBREVIATION

COBO - Company Owned Bottling Operation.

FOBO - Franchise Owned Bottling Operation.1

PAIC - Punjab Agro Industrial Corporation.

PAU- Punjab Agriculture University.

SKU- Stock Keeping Units.

CEO – Chief Executive Officer.

PPM – Parts Per Million.

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Suggestions (if any):-

_______________________________________________________________

_______________________________________________________________

__________

Thank You

Place:-……………………

Date:-……………………

Surveyed by:

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