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TABLE OF CONTENTS

DESCRIPTION PAGE NO

1. PREFACE 5

2. INTRODUCTION

I. Objective II. Company profile 14 * PepsiCo Company Profile

III. History of the Company 17 IV. Organizational Structure 30

2. RESEARCH METHODOLOGY

I. Research Design 56II. Market Research Process 57

III. Visi Purity 63

3. FINDING AND ANALYSISI. Findings & Observation 80

II. Graphical Analysis 83 III. Swot Analysis

4. CONCLUSIONS & RECOMMENDATIONS

I. Conclusion 95II. Recommendation 98

III. Limitation 105IV. Main Key Points 107

5. BIBLIOGRAPHY

I. Bibliography 112II. Annexure 114

III. Questionnaire 116

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I ntroductio

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INTRODUCTION

The Project “Sales promotion & Market Share of PEPSI in

ANANATHAPURAMU ” Is designed on the lines of basic investment decisions to

be taken by the senior officials of PEPSI for the purpose of amendments in the pre-

existing distribution network in order to review and strengthen the routes. The findings of

the project are very crucial for the increment of the market share of PEPSI in the

ANANATHAPURAMU & Beverage Market.

Though the process is an ongoing one but the decisions have to be taken on a

strong base, supported by facts and figures and that too on papers. This support can only

be provided with the help of an extensive and through analysis of the market and the data

collected thereof.

The Marketing Development Co-ordinator who was the lead or the project head

delivered the objectives of the project to us expressly and we had to submit the day report

to him along with the draft report. He was the in charge of the project and gave guidelines

and directions to approach the project.

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Objectives:

To analyze, interpret and study the entire beverage market of ANANATHAPURAMU

Comparative study of the various brands, packs and flavors available in the

market.

Analysis of the strong and weak point of the competitors products and compare it

with PEPSI.

To assess the reach and feasibility of the product and give the output for further

investment for enhancing the distribution network along with assessing the

efficiency of the current distribution system.

Assess the promotional measures in the context to the sales of PEPSI and focusing

our study on the customer of company i.e., the retailers.

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As obvious that any company is concern with the increase in sales of its products,

our project was in line with the companies’ objectives and all steps incorporate in the

project were directed to give an overview so as to attain its objectives

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The market research conducted by us was in accordance to the company’s rules

and policies which were quite material for the efficient and effective results and

inferences to be drawn from the entire process.

The market research was conducted in compliance of the given guidelines delivered

to us expressly to achieve the given objectives, which were as under:

1. Profitability

2. Improvement

3 Sales

4. To satisfy the customers

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Company Profile

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COMPANY PROFILE

In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina,

begins experimenting with many different soft drink concoctions; patrons and friends

Sample them at his drug store soda fountain.

In 1898 One of Caleb's formulations, known as "Brad's Drink," a combination of

carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on

August 28, 1898. Pepsi-Cola receives its first logo.

Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment

beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo,

Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana,

Gatorade and Quaker Foods businesses in the United States and Canada.

Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi,

Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer

account for nearly one-third of total soft drink sales in the United States.

Pepsi-Cola North America's non-carbonated beverage portfolio includes

Aquafina, which is the number one brand of bottled water in the United States, Dole

single-serve juices and SoBe, which offers a wide range of drinks with herbal ingredients.

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The company also makes and markets North America's best-selling, ready-to-drink iced

teas and coffees via joint ventures with Lipton and Starbucks, respectively.

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

The company's principal businesses include:

Frito-Lay snacks

Pepsi-Cola beverages

Gatorade sports drinks

Tropicana juices

Quaker Foods

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

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

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

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

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

strategies and the high level of integrity of our people.

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There are many who feel that Pepsi-Cola had the first move advantage in India.

Little do they know about Pepsi-Cola’s initial foray into Indian soft drinks industry way

back in 1956?

Coca–Cola had entered the country just a year back in 1955. But later Pepsi-Cola

withdrew from the country in 1961 due to bottling problems. Pepsi-Cola entered India in

April 1989 by setting operation in beverages, snacks & agribusiness. At this time Parle

had 70% of the market share of the total soft drink market.

Initially it faced some trouble in entering the market due to strong resistance from

most of the domestic soft drink industry and the advocates of “Swadeshi”. The Indian

economy was not liberalized and proved to be another barrier. Pepsi-Cola removed these

barriers by:

Promising the government to focus considerable selling efforts in the rural area to

help economic development.

“Promising to help boost the expert of agricultural products”

Offering to transfer the food processing, packaging & water treatment technology

to India.

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THE HISTORY OF PEPSI-COLA

1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins

experimenting with many different soft drink concoctions; patrons and friends sample

them at his drugstore soda fountain.

1898:One of Caleb's formulations, known as "Brad's Drink," a combination of

carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on

August 28, 1898. Pepsi-Cola receives its first logo.

1902: The instant popularity of this new drink leads Bradham to devote all of his energy

to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the

U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company.

The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly

Journal

1903:"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented

warehouse; he sells 7,968 gallons of syrup in the first year of operation.

Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion."

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1904: Bradham purchases a building in New Bern known as the "Bishop Factory" for

$5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six-

ounce bottles. Sales increase to 19,848 gallons.

1905: Pepsi-Cola's first bottling franchises are established in Charlotte and Durham,

North Carolina.

Pepsi receives its new logo, its first change since 1898.

1906: Pepsi gets another logo change, the third in eight years. The modified script logo is

created with the slogan, "The Original Pure Food Drink."

There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada.

Syrup sales rise to 38,605 gallons.

The federal government passes the Pure Food and Drug Act, banning substances such as

arsenic, lead, barium, and uranium, from food and beverages. This forced many soft drink

manufacturers, including Coca-Cola, to change their formulas. Pepsi-Cola, being free of

any such impurities, claimed they already met federal requirements.

1907: Pepsi-Cola Company continues to expand; the company's bottling network grows

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to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.

Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons.

1908: Pepsi-Cola becomes one of the first companies to modernize delivery from horse

drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract

to make and sell Pepsi-Cola.

1909: Automobile race pioneer Barney Old field endorses Pepsi-Cola in newspaper ads

as "A bully drink...refreshing, invigorating, a fine bracer before a race."

1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.

1920: Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy

you."

1923: Pepsi-Cola Company is declared bankrupt and its assets are sold to a North

Carolina concern, Craven Holding Corporation, for $30,000.

Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will

from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

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1928: After five continuous losing years, Megargel reorganizes his company as the

National Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi

trademark.

1931:U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola

Company bankrupt, the second bankruptcy in Pepsi-Cola history.

The Loft candy company acquires the National Pepsi-Cola Company. Charles G. Guth,

president of Loft, assumes leadership of Pepsi and commands the reformulation of Pepsi-

Cola syrup formula.

1933: By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of

moves, he acquires Mega gel’s interest in the company, giving himself 91% ownership of

Pepsi.

1934: A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales,

the company begins selling its 12-ounce drink for five cents (the same cost as six ounces

of competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant

success. The cost savings proves irresistible to Depression-worn Americans and sales

skyrocket nationally.

Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th,

1867-February 19th, 1934)

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1935: Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and

sets up national territorial boundaries for the Pepsi bottler franchise system.

1936: Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.

1938: Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of

the Pepsi-Cola Company. Mack, who considers advertising the keystone of the soft drink

business, turns Pepsi into a modern marketing company.

1939: The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel"

theme in newspapers.

Pepsi-Cola Company names Mack as CEO

The Board of Directors removes Guth from the Pepsi payroll after he plans

1940: Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first

advertising jingle ever broadcast nationwide on radio.

1941: The New York Stock Exchange trades Pepsi's stock for the first time.

In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.

1943: Pepsi’s theme line becomes "Bigger Drink, Better Taste."

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1948: Corporate headquarters moves from Long Island City, New York, to midtown

Manhattan.

1950: Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife,

Hollywood movie star Joan Crawford, is instrumental in promoting the company's

product line.

Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is

the fifth in Pepsi history.

1955: Herbert Barnet is named President of Pepsi-Cola.

1959: Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice

President Nixon share a Pepsi.

1960: Young adults become the target consumers and Pepsi's advertising keeps pace with

"Now it's Pepsi, for those who think young."

1963: After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall

is named CEO of Pepsi-Cola Company.

Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the

12-ounce bottle gives way to the 16-ounce size.

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1964: Diet Pepsi, America's first national diet soft drink, debuts.

Pepsi-Cola acquires Mountain Dew from the Tip Corporation.

1965: Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and

Pepsi-Cola merge, forming PepsiCo, Inc.

Military 12-ounce cans are such a success that full-scale commercial distribution begins.

Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your

innards."

1970: The Pepsi World Headquarters moves from Manhattan to NY.

1974: First Pepsi plant opens in the U.S.S.R.

Television ads introduce the new theme line, "Hello, Sunshine, and Hello Mountain

Dew."

1977: At 37, marketing genius John Sculley is named President of Pepsi-Cola.

1978: The Company experiments with new flavors. Twelve-pack cans are introduced.

1980: Pepsi becomes number one in sales in the take home market.

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1983: Mountain Dew launches the "Dew it to it" theme.

1984: Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New

Generation."

1985: After responding to years of decline, Coke loses to Pepsi in preference tests by

reformulating. However, the new formula is met with widespread consumer rejection,

forcing the re-introduction of the original formulation as "Coca-Cola Classic."

The cola war takes "one giant sip for mankind," when a Pepsi "space can" is

successfully tested aboard the space shuttle.

1986: Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway.

Pepsi-Cola acquires Mug Root Beer.

1987: Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwid

Beverages.

1988: Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.

1989: Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation

Ahead."

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1990: American Music Award and Grammy winner rap artist Young MC writes and

performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi

family by endorsing Diet Pepsi. The slogan is "You Got The Right One Baby."

1991: Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada

becomes part of the company's North American operations.

Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate

(or PET) into the marketplace. The development marks the first time recycled plastic is

used in direct contact with food in packaging.

1992: Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding

"Choice of a New Generation."

Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will distribute single serve Lipton

Original and Lipton Brisk products.

Crystal Pepsi: a refreshing, clear soda that is caffeine free, has 100% natural flavors, no

preservatives and is low in sodium, goes national.

Mountain Dew introduces the popular theme line, "Get Vertical."

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1993: Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi".

Pepsi-Cola profits surpass $1 billion.

1994: New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi

CEO Craig Weatherup explaining the relationship between freshness and superior taste

to consumers.

Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo

Foods and Beverages Company.

1995: In a new campaign, the company declares "Nothing else is a Pepsi" and takes top

honors in the year's national advertising championship.

1996: In February of this year, Pepsi makes history once again, by launching one of the

most ambitious entertainment sites on the World Wide Web. Pepsi World eventually

surpasses all expectations, and becomes one of the most landed and copied, sites in this

new media, firmly establishing Pepsi's presence on the Internet.

1997: In the early part of the year, Pepsi pushes into a new era with the unveiling of the

Generation Next campaign. Generation Next is about everything that is young and fresh;

a celebration of the creative spirit. It is about

1998: Pepsi celebrates its 100th anniversary.

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PepsiCo. Chairman and CEO Roger A. Enrico donate his salary to provide scholarships

for children of PepsiCo employees.

Pepsi introduces Pepsi One - the first one calorie drink without that diet taste!

2000: Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills

and hard work elsewhere (for more money of course!), therefore putting an end to his

Pepsi page!

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O rganizational S tructure

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Chairman

President

Unit Manager

TDM

ADC

Customer Executive Customer Executive

Distributers A,B,C

Route Agents

Distributers E,F

Route Agents

Helper Helper

Product Profile

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PRODUCT POSITIONING OF PEPSI CO.

Pepsi prefers to position itself as the beverage choice of the “New

Generation”, “Generation Next”, or just as the “Pepsi Generation”.

These terms adopted in Pepsi’s advertising campaigns are referring to the markets

that marketers refer to as Generation X. The Generation X consumer is profiled to be

between the ages of 18 to 29. They have high expectations in life and are very mobile and

active. They adopt a lifestyle of living for today and not worrying about long-term goals.

Though Pepsi’s main emphasis is on this segment but they also have a focus on the 12 to

18 year old market.

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The rich deep blue coloring represents eternal youthfulness and openness.

Marketing plans like “Yeh Dil Maange More”, “Got Another Pepsi”, “Ye

Pyass Hai Badi” have made Pepsi one of the coolest brands recognized among teens

in the top five and the only beverage product in this category.

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PEPSI-COLA LOGOS

The Pepsi-Cola logo has changed many times over the years. Here's a

chronological history of the various logos.

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Slogans and Logos

1898 Brad's Drink

1903Exhilarating, Invigorating, Aids

Digestion

1906 Original Pure Food Drink

1908 Delicious and Healthful

1915 For All Thirsts - Pepsi:Cola

1919Pepsi:Cola - It makes you

Scintillate

1920Drink Pepsi:Cola - It Will Satisfy

You

1928 Peps You Up!

1929 Here's Health!

1932 Sparkling, Delicious

1933 It's the Best Cola Drink

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1934Double Size

Refreshing and Healthful

1938 Join the Swing to Pepsi

1939 Twice as Much for a Nickel

 

1943 Bigger Drink, Better Taste

1947 It's a Great American Custom

1949 Why Take Less When Pepsi's Best?

 

1950 More Bounce to the Ounce

1954The Light Refreshment

Refreshing Without Filling

1958 Be Sociable, Have a Pepsi

1961Now It's Pepsi for Those Who

Think Young

  

1963Come Alive!  You're in the Pepsi

Generation

1967Taste that Beats the Others Cold,

Pepsi Pours It On.

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1969You've Got a Lot to Live, Pepsi's

Got a Lot to Give

1973 Join the Pepsi People Feelin' Free

1976 Have a Pepsi Day!

1979Catch That Pepsi Spirit

Take the Pepsi Challenge

1981 Pepsi's Got Your Taste for Life

1983 Pepsi Now!

1984 The Choice of a New Generation

1987 America's Choice

1989 A Generation Ahead

  

1992 Gotta Have It

1993 Be Young, Have Fun, Drink Pepsi

1995 Nothing Else is a Pepsi

1997 Generation Next

 

1998 Same Great Taste

1999 The Joy of Cola

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2000 The Joy of Pepsi

2003

2004

a2005

2006

Pepsi.  It's the Cola

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STRENGTH & WEAKNESSES

OF PEPSI CO.

Pepsi Cola throughout its 100 years of existence has developed much strength.

One of the strengths that have developed Pepsi into such a large corporation is a strong

franchise system. The strong franchise system was the backbone of success along with a

great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring

Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of

1997.

Pepsi also has the luxury to spend 225 million dollars in advertising a year. This

enormous ad budget allows Pepsi to reinforce their products with reminder advertising

and promotions. This large budget also allows Pepsi to introduce new products and very

quickly make the consumer become aware of their new products.

Pepsi-Cola provides advertising, marketing, sales and promotional support to

Pepsi-Cola bottlers and food service customers. This includes some of the world's best-

loved and most-recognized advertising. New advertising and exciting promotions keep

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Pepsi-Cola brands young. The company manufactures and sells soft drink

concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage

products.

Pepsi also has had the good fortune of making very wise investments. Some of the

best investments have been in their acquiring several large fast food restaurants. They

have also made wise investments in snack food companies like Frito Lay, which at

present time is the largest snacks company in the world.

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Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has four

soft drinks in the top ten beverages in the world. These brands are Pepsi, Mountain Dew,

Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the No.1 tea in the United

States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana, Starbucks,

Aquafina and a license agreement with Ocean Spray Juices.

Pepsi Cola like any company has weaknesses. Ironically, the one strength that has

been credited for most of its success in the past has now become a weakness for Pepsi.

This former strength is the franchise system. The franchise system in Pepsi Corporate

view has become a liability. Pepsi in today’s market must be able to act as one instead of

several separate units.

The franchise system has become a hurdle to Pepsi because many of these

franchises have become very strong and will not be dictated by PepsiCo on how to handle

their operations. Some of these franchises are unwilling to support certain Pepsi products

and at times produce their own private label products that are in direct competition with

Pepsi products.

Secondly the franchisees are not willing to make capital expenditures to keep up

with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola

at present time does not operate a franchise bottling system).

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As mentioned earlier Pepsi has tried to elevate this problem by spinning off their

interest in fast food restaurants but at present time are still guilty by association to many

of the large fountain accounts. The franchise system has also affected fountain sales due

to the fact franchisees are not willing to buy expensive fountain equipment to place in

accounts mainly because the profit margin is so low and could take years to recoup their

investment. Pepsi also has a weakness in the international beverage market.

Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena. Pepsi

has tried to enter this market by trying to do in three years what took Coke 50 years to do.

This area will take years for Pepsi to mature simply due to Coke’s dominance in the

international market and the strong ties that Coke has developed with these markets and

their governments.

Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi

customers buy their products because of taste, price, packaging and promotional factors

and of a wide variety of brands. Pepsi customers also buy their products due to the high

accessibility of Pepsi brands.

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Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi

buys large shelf area and display areas so the customer can find them easier, viz,

Convenience stores, Restaurants, Movie theaters and almost and other conceivable spots.

Pepsi has a competitive advantage over Coke because of the image it portrays.

Pepsi promotes itself as the choice of the “New Generation”. Pepsi gets this advantage

by implementing such large marketing projects like “Project Globe”. This marketing

plan, which Pepsi spent 637 million dollars over five years, is to introduce the new rich

deep blue coloring of its packaging. The rich deep blue coloring represents eternal

youthfulness and openness. Marketing plans like this made Pepsi one of the coolest

brands recognized among teens in the top five and the only beverage product in this

category.

Another competitive advantage that Pepsi has is in their product Mountain Dew.

Mountain Dew has grown a staggering 74.1% over the last five years. Mountain Dew has

a 6.3% market share and has recently become the No.4 soft drink in America. At this

current pace Mountain Dew will be come the first non-cola to reach the 1billion gallon

mark in one year.

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Pepsi also has an advantage as an innovator in their field. They are the first soft

drink makers to introduce a new one-calorie soda called Pepsi-One with, just approved by

the FDA, Ace-K.

This new sweetener is slated to be a break through for diet soda in which it limits

the after taste associated with diet soda and brings a more cola taste to the product. Pepsi

has always been a strong No.2 against Coke and have become one of the world’s largest

Companies. As far as market share is concerned Pepsi stands strong.

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PEPSI-THE INDIAN EXPERIENCE

• Pepsi is one of the most well known brands in the world today available in over

160 countries. The company has an extremely positive outlook for India. "Outside

North America two of our largest and fastest growing businesses are in India and

China, which include more than a third of the world’s population." (PepsiCo’s

annual report, 1999)

• This reflects that India holds a central position in Pepsi’s corporate strategy.

India is a key market for PepsiCo, and at the same time the company has added value to

Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in

three focus areas – Soft drink concentrate, Snack foods and Vegetable and Food

processing.

• Faced with the existing policy framework at the time, the company entered the

Indian market through a joint venture with Voltas and Punjab Agro Industries. With the

introduction of the liberalization policies since 1991, Pepsi took complete control of its

operations. The government has approved more than US$ 400 million worth of

investments of which over US$ 330 million have already flown in.

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• One of PepsiCo’s key strategies was to develop a completely local management

team. Pepsi has 19 company owned factories while their Indian bottling partners own 21.

The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official

about it’ immediately ring a bell- it’s got to be Pepsi.

The advertisement tag ‘yehi hai right choice baby’ was the first

‘Hinglish’ slogan ever used in the in the Indian market. This slogan proved to be the

best suited one for Pepsi and it was a mega hit and at that moment of time.

Pepsi in a short span of its operations in India has found a place in the hearts and

minds of the Indian consumers. The success has primarily been due to the innovative and

passionate Indian team, which has been built over the years. Pepsi is a trendsetter

managed and run by Indians, where important decisions are taken locally.

Pepsi started its operations in India in 1989 and since then PepsiCo has set up a

fully integrated operation in India viz. Manufacturing, Research & Development,

Marketing, Distribution and Franchising- covering fruit/vegetable processing, Exports,

Snack Foods & Beverages. In the mean time Pizza Hut and Frito Lay’s are the examples

in this regard only.

Pepsi has 40 bottling plants in India, out of which 16 are company owned and 24 are

owned by Indian franchisees. One of the major players in franchisee is RKJ Group.

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The RKJ group is India's leading supplier of retailer brand Carbonated and Non-

Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its

experience in the beverage industry dates back to the sixties when it had the first

franchise at Agra.

It has the license to supply beverages in the territories of Western U.P., part of

M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of

Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal

and is responsible for producing and marketing 44% of Pepsi requirement in India.

This group has brought name and fame to the Pepsi as in all this regions Pepsi is

at the commanding position and in the mean this group has diversified itself into ice

cream, suiting and shirting’s, restaurants, beer plant in Mauritius & edible oil plant in Sri

Lanka

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PEPSI-COLA IN INDIAN SCENARIO

Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has under

gone a radical change. When Pepsi-Cola entered, Parle was the leader with the

Thumps-up being its flagship brand. Other products offering by Parle included

Limca & Gold spot, another upcoming player in the market was, the erstwhile

bottler of Coca-Cola, “pure drinks”. Its offering includes Campa- Cola,

Campa-Lemon & Campa-Orange.

With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in

for more aggressive marketing to sustain its market share. The chronology of the

initial phase of the Cola wars in India was:

1977: Parle launched Thums-up and pure drinks launched Coca-Cola.

1998: In September, final approval for the Pepsi Foods Ltd. Project granted by the

“Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt.”

1990: In March, “Pepsi-Cola and 7-up” launched markets in north India.

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1990: In May, The government cleared the Pepsi-Cola project again but with a

change in brand name to “Lehar Pepsi”, simultaneously it rejects the Coca-Cola

application “Citra” from the Parle, stable hited the market.

1991: Pepsi-Cola extended its soft drinks business and reached at national scale.

Pepsi-Cola launched its product in ANANATHAPURAMU and Bombay.

1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and

Parle start initial negotiation for a strategic alliance but took break off after a

while.

1993: Pepsi-Cola launched “Slice and Teem” captured about 25-30% of the soft

drink market in about 2 years.

1994: Pepsi bought “Dukes & Sones”.

1995: Pepsi-Cola lunched cans, having capacity of 330ml in various flavors

1996: Pepsi-Cola domestic and international operations combined into a

Pepsi-Cola Company. International and domestic operations combined into one

business unit called “Frito-lay Company”.

44

1997: Pepsi-Cola brought “Mirinda Orange” opposite to “Fanta”.

1998: Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”.

1999: Pepsi-Cola launched “Diet Pepsi” in can and 1.5 Lit. “PET” bottle for

health conscious people.

2001: Pepsi-Cola launched Slice in “Tetra” Pack.

2003: Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season.

2005: Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of

movie Batman.

2005: Pepsi-Cola launched 7-up as “7-up ice”.

Pepsi-Cola launched “Mountain Dew” to be more competitive with Coca-Cola

45

PEPSI-COLA PHRASES

The Pepsi-Cola marketing phrase has also changed many times

1909-1939:    Delicious and Healthful

1939-1950: Twice As Much For A Nickel Too

1950-1963: The Light Refreshment

1953-1961: Be Sociable

1961-1963: Now It's Pepsi For Those Who Think Young

1963-1967: Come Alive! You're In The Pepsi Generation

1967-1969: Taste That Beats The Others Cold

1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give

1973-1975: Join The Pepsi People Feeling' Free

1975-1978: Have A Pepsi Day

1978-1981: Catch That Pepsi Spirit

1981-1982: Pepsi's Got Your Taste For Life!

1983-1983: Pepsi Now!

1984-1990:

1990- 1994:

1995- 2004

2004- now

Pepsi, The Choice Of A New Generation

Pepsi nothing official about it

Yeh dil mange more (Pepsi India)

My Pepsi my world

46

.

PEPSI – BRANDS AND PACK PROFILE

47

BRAND PACKS:

The products are generally available in three kinds of

packaging:

48

GLASS BOTTLES

DISPOSABLE CANS

49

PET JARS

FLAVOUR PACKS:

50

COLA (Carbonated Soft Drink):

PEPSI

MIRANDA ORANGE

ORANGE:

51

.

MOUNTAIN DEW

7UP

52

MANGO:

SLICE MANGO

MINERAL WATER:

AQUAFINA

53

THE RKJ GROUP

It can be said with absolute certainty that the RKJ Group has carved out a special niche for

itself. Their services touch different aspects of commercial and civilian domains like those

of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on

today can lay claim to expertise and leadership in the fields of education, food and

beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods

Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined

territories in which brand and technical support was provided by the Principals viz., Pepsi

Foods Limited. The manufacturing facilities were restricted at Agra Plant only.

The group also became the first franchisee for Yum Restaurants International

[formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise

rights for Northern & Eastern India. It has total 27 Pizza Hut Restaurants under its

company.

54

The group added another feather to its cap when the prestigious PepsiCo

“International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year

1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii,

USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in

the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico,

Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of

Pepsi Cola Company.

55

Credentials

56

MAJOR CREDENTIALS

PEPSICO HOLDINGS PVT. LTD. RECEIVED “GOLD STANDARD

AWARD” FOR PRODUCTION & QUALITY CONTROL FOR THE YEAR

1996-1997.

JAIPURIA GROUP WAS ADJUDGED “BEST BOTTLER” OUT OF

MORE THAN 2000 BOTTLERS ALL OVER THE WORLD FOR THE

YEAR 1996-97.

57

LOCATIONS OF BOTTLING PLANTS OF

PEPSI IN INDIA

53

Research Methodol

ogy

54

 

RESEARCH METHODOLOGY 

OBJECTIVE OF RESEAECH:-  

The Main objective of research in this project was to get the detailed analysis of

the market position and sales promotion of the PEPSI PRODUCTS. 

RESEARCH PROBLEM:-  

To what extent does the penetration level of the PepsiCo product's and the other

merchandising objects like cooling equipments, Ice Boxes, Glow signs, Dealer

boards, Paintings and Racks leads the penetration of such things from, Coca-

Cola during the summer period in the period in the year 2015 in

ANANATHAPURAMU and Its rural area and urban area, distributed via direct

and indirect routes. What were the factors responsible for this level of

penetration? 

TYPE OF STUDY:-  

Primary study.  

55

 

RESEARCH DESIGN  

The Design Of our research is statistical as it concerns the items are to be

observed and how the information and data gathered are to be analyzed.  

SAMPLE DSSIGN:-  

For the project we used non-probabilistic sampling that can also be termed as

we only targeted the shops which sells waters.  

METHODS OF DATA COLLECTION 

The data collected for the project was primary data. The data was collected

through personals interviews, which was in the form of direct personal

investigation. The interview was very structured because we only ask the

question as per the EDS format.  

Types of data

1. Primary data

56

2. Secondary data

  THE MARKET RESEARCH PROCESS

The entire project was divided into five phases and each phase had its individual

significance and supplemented each other. The process had to be started from the grass

root level and it was very important to understand the market for this FMCG product,

which is very fast in production, distribution and consumption.

The five phases into which the project was divided were :

A. Route Riding

B. Retail Tracking

C. Corporate Tracking

D. Analysis of finding and observations

E. Segregating ANANATHAPURAMU for WAP and SAP

57

The entire process was more of a Descriptive Research type and incorporated a

formal study of the specific problems faced by most FMCG companies an exploring the

opportunities in the untapped market. The survey was conducted on the basis of PEPSI

product preference and evaluation of sales forecast in the new and underdeveloped

market including the evaluation of the advertising and promotional measures. The data

collected had to be systematically arranged, analyzed and reported in a form congenial to

take on the spot decisions.

The observation approach was adopted in the process by gathering the data

essential and material for the decision-making and with clear objective of increasing the

market share of PEPSI in the ANANATHAPURAMU market. Customer preferences

and satisfaction was also important in assessing the market share but that was very clear

that customers generally do not have loyalty towards the product in the Beverage industry

rather what matters the most is the product availability which will be discussed later.

All the phases mentioned above have been discussed along with the observations,

problems, and other dimensions which have been encountered and experience in detail in

the following pages.

58

A. ROUTE RIDING :

The Beverage Industry or to be more specific, the Soft Drinks Industry has one of

the most active network in term of its production, supply, distribution, marketing,

consumption and also personal relations at the very second level of its distribution

network. That is the reason why it is sometimes said to be “Very Fast Moving

Consumer Goods”.

Due to the above stated reason it becomes very essential to study and analyze the

market of these products from the grass root level. So in the Soft Drinks Company as

PEPSI, route riding becomes the first and foremost step in any of the activities to be

undertaken be it any official so we were no exceptions.

During the very initial days we were required to exercise Route Riding, the

objective of which was:

To understand and analyze the market in its raw and basic form.

59

To gain an in depth knowledge of the merchandising and processing activities of

the Route Agents and understand the Beverage market.

To undertake the comparative study of the various brands and flavor packs of all

existing beverages or soft drinks

market and the market share and growth potential of each brand individually.

To develop innovative ideas to enhance the distribution system.

Route Riding is basically accompanying Pepsi Vans along with the route agents

and understanding the way they conduct merchandising activities right from the charged

vans leave the depot to the entry of empty vans back to the depot. The Route Riding

phase was for the initial twenty days in which we had covered twenty different routes.

60

The Route Riding is a crucial phase because the actual dealing with the retailers

and their dealing with the customers can be very efficiently understood through this

process which is important at all levels of decision making in the industry.

The Routes i.e., the Pepsi Vans were charged and left the depot by 7:30 in the

morning, accompanied by the Route Agent (Ra’s). The RA’s were given the route

planners and the particulars of the products, flavors, and quantities along with the billing

materials. The vans had to cover the entire route and the RA had to do the merchandising

and sales against cash, which was a significant feature of this industry. The targets were

given twice or thrice in a week that was a challenge for them and after achieving these

targets the RA’s was awarded with some special incentives. As there exists a player like

Coca Cola. So it had a lot to do with schemes, discounts and other incentives.

61

VISI PURITY

62

The routes were allocated on the basis of individual areas and the demand of the

product in that particular area. The RA’s been responsible for the accomplishment of

their sales target on their routes and was given incentives on achieving the targets. Not

only this, the RA’s also had the responsibility of moving the flavors and packs in

proportion along with the proper display of the products for proper visibility and

arrangement of products in brand order along with “VISI purity”.

The RA’s had the responsibility of setting up Monopoly PEPSI Sales Counters

where no products except that of PEPSI would be available amongst the soft drinks and

especially of Coca Cola. These monopoly sales counters enjoyed special benefits in terms

of discounts, schemes, VISI’s (fridges), display boards, glow signboards, wall paintings,

banners, posters and other incentives

The RA’s had to achieve their sales target and surrender the daily sales proceeds

with the concerned Customer Executives along with the route planner and billing

materials and gate pass along with the details of sales on their route.

63

The entire activities of the RA’s was controlled by the Customer Executives, who

also assisted the RA’s in achieving their targets and were in charge of the sales

performance in their assigned areas. A Customer Executive had nine to ten RA’s under

him and was responsible for their performances as well. He was also concerned with the

promotional activities on his routes and handling of policy matters in the corporate

regarding supply to industrial canteens and cafeterias

We as Research trainees were required to study and analyze the activities of the

RA’s and be familiar with the market. We had been provided Market Analysis Sheets by

the MDC in which we were required to record the observations of the retail outlets on a

particular route.

The observations, which were required to be recorded in, were:

The quantity of the cold and warm stocks of all brands and flavors available at the

outlet along with the outlet details.

64

Inquiring about the satisfaction of the retailers in terms of sales of PEPSI

products, schemes, discounts, combo offers, and the benefits of promotional

activities.

Inquiring about the satisfaction by the current distribution network in context to

product availability of all flavors packs or individual flavors according to demand

of customers, rates billings.

Inquiring about the behavior and merchandising of RA’s in accordance with the

companies’ regulations and record complaints against RA’s, company or

products, if any.

Inquire about the performance of various brands and flavors packs and customer’s

response to those brands or flavors and also to educate the retailers about various

schemes and incentives to increase sales volume.

Last but not the least, assessment of the effectiveness of, assessment of the

effectiveness of promotional materials and activities like, display boards, glow

signs, signage, wall paintings, posters, banners, racks, shelves, counters, VISI’s,

and also impact of nation wide advertising on brand loyalty by the customers.

65

The information so collected was required to be filled in the Market Analysis

Sheet (specimen on the next page) and reported to the MDC along with other information

in order of their seriousness.

66

RETAIL MAPPING OF

ANANATHAPURAMU :

The Retail Mapping is the integral part of the project and the most crucial is

taking significant decisions regarding the enhancement of the distribution network

involving heavy investment on account of increasing the routes and starting new routes

and promotional measures on those routes to increase its market share in

ANANATHAPURAMU . The new routes, exploring new markets required the decision

to be supported with facts and figures which had to be provided by the Research trainees

on the basis of the survey conducted in the market and processed data there of.

The retail mapping had to be conducted on the basis of the Retail Tracking Sheet

(RTS), which had been developed by the Marketing Development Coordinator and

Customer Executives of the ANANATHAPURAMU unit which incorporated the retail

outlets, their addresses, proprietor, respondent etc and served as a vital database for all

market since then for PEPSI in ANANATHAPURAMU and had to be incorporated in

the project in accordance to the companies policies.

67

Objectives of Retail Mapping:

Segregating entire ANANATHAPURAMU for Strong Area Programme and

Weak Area Programme i.e., SAP and WAP.

Assessment of retailer’s performance.

Assessment of the level of promotional measures required for increasing market

share of PEPSI.

Collection of required information for making investment decisions for the

enhancement of existing routes and opportunities for new routes in existing

market as well as exploring new market.

Classification of all retail outlets in ANANATHAPURAMU into five broad

categories viz, On Route, Non Existence, Non Potential, Reachable and Non

Reachable under the head, Potential Retail Outlets.

68

The duration for the completion of the Retail mapping took duration of 20 days.

The entire survey was guided and directed by the Customer Executive and Daily report

had to be presented to him after assessment and analysis along with other findings and

observations. The Data had to be classified in a systematic manner and presented in a

predefined format, which was further reviewed by the Marketing Development

Coordinator.

The Retail Mapping process incorporated of including of new outlets, which have

been omitted or newly opened, and the product availability on all these outlets. The major

thrust was on segregating the market for Strong Area Programme and Weak Area

Programme.

The Strong Area refers to the routes on which the sales targets are met without

much effort and have continuous demand for the products. These areas are performing to

the standards and are contented with the level of promotion schemes and other sales

boosting measures. The marketing efforts are nominal in these areas because of the

surplus demand and the area of concern is only to ensure the proper and efficient supply

of the products to meet the demand. In the ANANATHAPURAMU market

approximately 32% of the market can be said to be strong areas and these areas include

the well-developed markets as shopping malls, movie theatres, convenes, hotels,

69

restaurants and bars etc. For these Strong areas, SAP only aims at maintaining the

performance of the product and enhancing the sales volume. It is not the area of serious

concern for the company.

On the contrary the Weak Area refers to those areas or routes, which are critically low in

sales and the targets, are tough to achieve and require aggressive marketing support. The

demand in these areas is fluctuating or rather feeble. The routes are the area of concern

for the company as the demand is very low due to many reasons and the major one is the

existence of the player like Coca Cola in the market. Other reasons could be poor

distribution network, inadequate availability of the products on the outlet, inadequate

promotional measures and marketing support, undeveloped market as that of the interiors

etc.

These weak areas had to be identified and the cause of their inferior performance had to

be traced through the Retail Mapping and the company had to be provided with the facts

and figures to take legitimate measure on the basis of the findings of the deficient

performance of the product in these areas. This involved the aggressive marketing

strategy and heavy investment decisions to strengthen these markets. For this purpose the

classification of the outlets into five categories was very crucial along with the other

findings and observations discussed later. These five heads of classification have been

discussed as under.

ON ROUTE :

70

It refers to the retail outlets, which are covered by the Route Agents and visited

daily for sales and merchandising. The outlet is visited daily and actively involved

in the sales of all brands and flavor packs of PEPSI.

71

NON EXISTENCE:

It refers to the outlets which were merchandising the product are no more in

existence, i.e., they have diversified their business activity or have closed.

NON POTENTIAL :

It refers to those outlets, which are in existence but have very low potential in

terms of sales or are not keenly interested in merchandising the products of soft

drink.

A careful assessment had to be done in case of Non Potential outlets, as they

would turn to be potential in near future. It was also the area of operation of

project to motivate these Non Potential outlets to undertake the merchandising of

PEPSI.

72

POTENTIAL OUTLETS :

It refers to those outlets, which have the potential for the merchandising of PEPSI

and have the required investment capabilities and can be the profitable Point

Of Purchase of PEPSI by the customers. There were cases in case of these

potential outlets, which were already merchandising PEPSI, and those, which

did not, dealt with beverage products. The possibilities of setting monopoly

counter were very fair at these outlets and were given special attention. The

Potential outlets had to be further classified in two heads as below:

73

o REACHABLE POTENTIAL OUTLETS :

It refers to those Potential outlet which are reachable i.e., the products can

be made available with the PEPSI vans. The reachability decision had to

be taken in context to the accessibility of the vans at these outlets.

o NON REACHABLE POTENTIAL OUTLETS :

It refers to those Potential outlets which are not accessible by the PEPSI

vans. These outlets had to be considered because the sales volume can be

increased at these outlets and so alternative method of distribution and

promotional activities have to be evaluated and worked upon.

74

C. CORPORATE MAPPING :

ANANATHAPURAMU being an entirely industrial city had huge potential for

the sales of PEPSI in corporate as these concerns had factories, offices and canteens and

the officials and workers base was very strong. The process of Retail Mapping was

followed by the Corporate Mapping, which incorporated of tracing of the organizations

and assessing the market for PEPSI in these areas. Apart from these the database had to

be updated to turn the non-potential market in the corporate into profitable liaisons for the

increment of sales volume.

75

THE OBJECTIVES OF CORPORATE MAPPING WERE:

Trace the organizations with and without canteens and cafeterias and estimate

the market for PEPSI.

Estimate the brand preference of PEPSI and COKE in the corporate and the

reasons thereof.

To review the product performance and satisfaction along with the

expectations of the customers in corporate including PEPSI Dispenser

Equipments.

To assess the product availability and demand of the product (Traffic) in these

organizations as well as when the product has the optimum consumption e.g.

daily, delegations, meetings, parties, or other occasions and the customers i.e.,

whether the officials or workers or both.

To ensure efficient supply and record any complaints or grievances thereof.

To assess the promotional measures being adopted by Coca Cola for tapping

these markets and locate the weak points in corporate having Coca Cola

counters to convert them into profitable opportunities.

76

The Corporate Mapping was the supplementary programmed in the project to

boost the sales performance of PEPSI in ANANATHAPURAMU and capture the

market share of its nearest competitor. The analysis and findings were recorded on the

format provide by the company accompanied by the list of findings and observations in

order or their preference and seriousness along with all the relevant details about the

organization. The matters were discussed and analyzed carefully by the MDC.

The corporate matters had to be given a special care as these had huge potential

for the product. The specimen copy of the Corporate Mapping format is attached for

reference. The findings and observations have been discussed in the coming pages.

77

D. ANALYSIS OF FINDINGS AND

OBSERVATIONS:

The main objective of the company is to increase the brand preference and market

share so any information material form this point of view had to be take into account

along with the formats provided by the company for predefined information recording

and analysis of those recordings and present the information in an organize and

systematic manner in a condensed form reflecting the actual position of the market.

The information had to be recorded in the format along with the relevant

information as per the objectives of the research and an analysis of that information had

to be made and present them in an understandable format so that immediate inferences

can be drawn. Generally those information had to be presented in percentages and the

other findings and observations had to be evaluated and a list of findings had to be

arranged in order of their seriousness and areas of serious concern along with the outlet

details.

After the analysis sheets and formats have been surrendered to the C.E’s after

analysis by the trainees it was further analyzed and evaluate by him and a brief analysis

was made each day of the daily report. The CE’s further forwarded these reports after

retaining the reference copy, to MDC for further review and reference.

78

SEGREGATION OF

ANANTHAPURAMU :

As discussed earlier that the major objective of the Retail Mapping of

ANANATHAPURAMU was to segregate the market for PEPSI for the Strong Area

Programme and the Weak Area Programme. These Programmers have been discussed

under the Retail Mapping Head. The Data and fact collected by the survey had to be

analyzed and presented in a systematic form in order to draw meaningful inferences.

The finding of the Route Riding and the Survey conducted during the Retail

Mapping and the Corporate Mapping were combined together and analyzed together to

reach a final report ie, the RETAIL MAPPING SUMMARY or THE CONDENSED

DRAFT REPORT, which gave the entire picture of the actual position if PEPSI in

ANANATHAPURAMU . The report so prepared was on the basis of the Retail Tracking

Sheet and the other supplementary finding and observations were considered to reach a

consensus of declaring the route as a weak area or a strong area.

The reports were analyzed thoroughly by the Customer Executives and a meeting

was held for the assessment of the routes and the reasons of unfavorable performance in

79

the weak areas and how to improve the sales on those routes. The discussion comprised

of the further investments for the enhancement and extension of the routes and the level

of promotional measures required in these areas. The performance of Coca Cola was also

reviewed simultaneously and a comparative study was made to assess the performance

and growth in the industry. These data and figures were compared with that of the last

year and a growth percentage was reached which also served as a basis of declaring an

area as a Weak Area.

As already mentioned PEPSI is a VFMCG so the marketing strategies are going to

be very dynamic in nature. The Customer Executives had to formulae day to day

strategies and these were communicated to RA’s in the morning when they were going to

leave the depot and this interaction among R.A.and C.E. was to be known as Gate

Meeting.

The programmers were to be based on the seriousness of the problems and

accordingly a mild or aggressive marketing, promotional and investment programmed

was to be formulated.

80

Findings &

Observation

81

FINDINGS & OBSERVATION

The reports of each phase of the project had to be supplemented by the

information, data, facts and figures and significant findings and observation to support

the feasibility of decisions to be taken on the basis of the Retail mapping Summary or the

CDR. The information so recorded in each phases of the project had to be listed in order

of their relevance and seriousness and presented in a form to facilitate immediate

inference.

Some of the important observations have been listed below:

Soft drink business’s behavior is not governed by brand loyalty so the availability

of the right brand, at the right place, at the right time is the key for winning

consumer in soft drink business.

The most important and satisfying observation was that, PEPSI had

approximately 64% market share in the soft drinks market in

ANANATHAPURAMU and some of its brands like Mirinda Orange and

Mountain Dew were performing above standards apart from PEPSI Cola in spite

of the Coca Cola with two cola flavor packs i.e., Coke and Thumps up.

82

The present distribution system of PEPSI is the best in the entire FMCG industry

in ANANATHAPURAMU and the major strength

of PEPSI. The enhancement in the distribution network would definitely increase

the market share of PEPSI.

The retailers played a very critical role in the increment in the sales volume of the

product and the had to be kept satisfied in order to increase the market share by

offering better schemes, discounts, display materials such as VISI’s, racks,

counter, signage, wall paintings and better amount for purchase of shelf space for

display.

The existence of sub-dealers and super stockiest are also the major area of

problem, as they do not move the schemes and other display materials and

incentives information to the retailers, which is one of the reasons for the

dissatisfaction of retailers.

83

The cut throat competition between PEPSI and COKE had lead to the never

ending cola war and price war which has brought down the profit margins which

is one of the major grievances apart from the common complains pertaining to

schemes, incentives and display materials.

The other major issue was the supply of PEPSI from the bottling plants in

ANANATHAPURAMU and Punjab against the company policies. These plants

supplied the products at discounted rates and violated merchandising principles of

PEPSI.

Another critical issue was the presence of duplicate products of PEPSI in the

market. The details of these outlets have been surrendered to the company for

action against these outlets.

The position of PEPSI in the corporate was not up to the mark and Coca Cola had

a better scene in this context. One of the reasons can be assigned to the product

positioning of PEPSI and Coca Cola.

84

85

Analysis

86

MARKET STATUS OF PEPSI PRODUCT

87

PREFERENCE OF SOFT DRINKS IN QUANTITY

88

RATIO OF CONSUMPTION OF SOFT DRINKS PER 100 CONSUMERS

89

The other Statistics and finding have been presented in the form of

various charts on the coming pages:

DEMAND OF SOFT DRINK

90

40%

50%

10%

children

youth

old

CONSUMTION OF PEPSI BRAND

PEPSI, 40

M.DEW, 15MIRINDA, 15

SLICE, 15

7UP, 10OTHERS, 5

PEPSI

M.DEW

MIRINDA

SLICE

7UP

OTHERS

91

RATIO OF PEPSI AND

COKE IN ANANATHAPURAMU

PEPSI, 45

COCK, 44

OTHERS, 11 PEPSI

COCK

OTHERS

92

Which brand purchase is the most?

.

93

S wot A nalysis

94

SWOT ANALYSIS

STRENGTH:

1) Good market penetration.

2) Motivated channel partner.

3) Well defined routes.

WEAKNESS:

1) All brands were not available in at least 80% shops.

2) Complaint handling was not up to mark.

3) Supply in certain area is very irregular and also route agents are not covering full

routes.

4) Poor signage and display is making the routes week for the sale of Pepsi.

5) Interpersonal relationship with the company officials and the route agent is not

satisfactory.

OPPORTUNITY:

1) It is observed that in some newly establishing areas many new outlets are opening

, Pepsi needs to concentrate on these new outlets and can gradually increase its

sale in these area.

95

2) Large number of mix outlets can be changed to Pepsi exclusive and coke

exclusive to mix only by luring them good and efficient supply, glow sign and

cooling equipments.

THREATES:

1) Coke is the only nearest competitor and it is catching up in the market penetration

through price skimming and other promotional scheme.

2) Some local brands commonly known as kancha , Tip Top , Shine and the launch

of Catch soft drink a product of DS group are causing decrease in sale in some

areas.

96

Conclusi

on

97

CONCLUSION

The business of Soft Drink industry is significantly based upon the impulse

buying, so it is very necessary to Merchandise products of PEPSI efficiently and present

them in such a manner so that it can motivate the consumer and generate a thirst in

consumer to consummate it.

Though, PEPSI has a strong position in ANANATHAPURAMU with the support

of its efficient distribution network, aggressive marketing efforts and advertisements

along with attractive schemes but there still exists potential market in

ANANATHAPURAMU to be exploited and a suitable Weak Area Programme or the

Strong Area Programme has to be formulated to improve its market share depending

upon the area under consideration.

Soft drink business’s behavior is not governed by brand loyalty so the emphasis is

not only on creating the market but also on retaining it. The availability of the right brand

and flavor pack, at the right place, at the right time is a key for winning the customer in

soft drink business. Keeping these facts in mind it becomes very important to treat the

retailers with concern and satisfy them by various measures and so that they are loyal

towards PEPSI. Public relation is also critically important in this industry.

98

CONCLUSION & RECOMMENDATION

99

Recommendations

100

RECOMMENDATIONS

The Project Retail Mapping was concerned only with providing the organization

with all the necessary information required to strengthen the position of PEPSI in

ANANATHAPURAMU in the form of reports incorporating all information in an

analyzed and summarized form. But some critical and major issues, which have been

identified on account of extensive analysis, required suggestions to be put forward on the

basis of the current market scenario.

There should be uniformity in, schemes, and discounts, which are offered to the

retailers and should be based on a specific parameter such as sales volume, to

avoid dissatisfaction and biasness among the retailers.

Activities of sub dealers and super stockiest should be controlled and checked in

order to ensure fair prices and distribution of schemes and incentives to small

retailers to avoid discontent among smallholdings and outlets.

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Every possible step should be taken for the satisfaction of the retailers, as they are

the most important supplement to the sales promotion measures and nationwide

advertising campaigns of the company in context of boosting the sales and

enhancement of the brand image of PEPSI.

The operations of the bottling plants of the surrounding territories should be

controlled in order to ensure that they do not supply the product in other territories

not under their area of operation.

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The company should modify its advertising strategy and educate the customers about

its age-old existence and enhance its brand image. This will appeal to the target

customers of middle and older age groups apart from the younger generation in which

PEPSI has a good hold.

First and foremost things are that, whatever the policy is going to be formulated it

should not be same for all the areas. Different policies should be framed and

implemented at different areas by looking and keeping various variables in the

mind like buying habits, preferences, education level financial position of that

particular area and standard if living etc.

Rural market being a very potential segment needs very quick and prompt efforts

to be taken to capture this high volume market.

Many retailers complained regarding irregularly in visit by the executives. They

also said that executive give very bad response to their complaints. It is necessary

that executive should make frequent visit to cover each outlet and try to provide

them best

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Pouches, foreign particles were found in few bottles, so proper quality control

measures should be implemented as company’s reputation are at stake.

There is a great market of soda (1 Lit.) but the supply of this pack is very poor, so

the supply should be made possible quickly.

Quality of PET bottle should be improved so that most problems can be

minimized.

Soft drink is still considered a treat virtually a luxury, so it possible company

should cut down its price especially of cans.

Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets etc

should be made at regular interval.

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Claim should be provided to the deserving retailers.

Wall painting should be made regularly in the area, as it is a good medium of

advertisement.

Proper attention should be given to the retailer’s problem so that they take interest

to increase the sale.

Proper advertisement should be made at railway station, bus stand, posh area,

major market and economies place etc.

105

A company may create favorable impression among the youth if they sponsors

small events like college festivals, university programs, school functions, fashion

shows, quiz programs etc.

Retailers need display material. To enhance the marketing of the product.

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Limitations

107

LIMITATIONS

The retailers in many cases reluctant to answered many questions.

The respondents may be biased on influenced by some other factors.

Time and money were the greatest limitation in carrying out the survey.

A number of retailers (pan-shop) being illiterate, it took us lot of time in

collecting information.

The mere information which we get from the retailers is not sufficient to arrive at

a conclusion.

The seasonal changes affect the sell.

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MAIN

KEY POINTS

109

MAIN KEY POINTS

Service aspect of agencies is very effective, they deliver their product according

to the demand a just in time.

After conducting the market survey of retailer in ANANATHAPURAMU city,

I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of PET.

After analyzing the market and calculate the weight age, the result comes out that

Mountain Dew is the leading product of Pepsi-Cola.

Consumers do have a demand for 200 ml and 2 lit. bottle.

Retailers have problem in display material.

Most of the place like cinema hall and educational institutions are dominated by

Pepsi-Cola.

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Retailers have complaint regarding the PET, that more better quality bottle should

be used.

Aquafina (Pepsi-Cola) in ANANATHAPURAMU city dominated Kinley (Coca-

Cola) mineral water.

Retailers have a demand of some offers and free gifts.

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Kinley soda (Coca-Coal) is also dominated by Lehar soda (Pepsi-Cola) in

ANANATHAPURAMU ..

Maaza (Coca-Cola) is also dominated by Slice(Pepsi-Cola).

It was seen that Lehar Soda (1 lit.) in particular remains short during the season.

In the market there is only a retailer on which the sale of the different product of

different company depends

112

Bibliography

113

BIBLIOGRAPHY

MARKETING MANAGEMENT “KOTLER PHILIP”

Pearson Education singapore 12th edition

MARKETING OF PRINCIPLE

.“GARY ARMSTRONG” Pearson Education 11th edition

RESEARCH METHODOLOGY

.“KOTHARI C. R.”New age international publisher

(ANANATHAPURAMU )2nd revised edition 2004 reprint 2008

114

MAGAZINES:

Advertising Management

Business India

Business Today

Business World

WEBSITE:

www.pepsiworld.com

www.pepsico.com

www.google.com

115

ANEXURE

116

Questionnaire

117

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QUESTIONNAIRE

Name : ____________________________________

Address : ____________________________________

____________________________________

Contact No. : ____________________________________

Q.1. Are your customer satisfied with Pepsi?

a. yes

b. no

Q.2. Do you provide home delivery of Pepsi ?

a. Yes

b. no

Q.3. How many houses?

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Q.4. Which brand of soft drink do you sell?

a. Only Pepsi-Cola

b. Only Coca Cola

c. Both.

Q.5. Which quantity of soft drinks you have?

a. 200 ml

b. 300 ml

c. 500 ml

d. 2 lit.

e. All

Q.6. Which brand of soda do you sell?

a. Leher Soda (Pepsi-Cola)

b. Kinley(Coca Cola)

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Q.7. Which brand of mineral water do you sell?

a. Aquafina (Pepsi-Cola)

b. Kinley (Coca Cola)

c. Others.

Q.8. Chilling equipment owned by you?]

a. Only Pepsi-Cola

b. Only Coca Cola

c. Both.

Q.9. Do you get timely supply of these brands with proper schemes?

a. Yes

b. No.

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Q.10. Is your chilling equipment working properly?

a. Pepsi-Cola = Yes…. No….

b. Coca-Cola = Yes…. No….

Q.11. During breakdown of chilling equipment who gives better service?

a. Only Pepsi-Cola .

b. Only Coca Cola

Q.12. Whose racks do you own?

a. Only Pepsi-Cola

b. Only Coca Cola

c. Both.

Q.13. Is there increase in sales due to display of the racks?

a. Yes

b. No.

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Q.14. Availability of glow boards provided by company through promotional scheme.

a. Yes

b. No.

Q.15. Are your customer SATISFIED of PEPSI schemes ?

a. Yes

b. No

c. Cant Say

Q.16. Is the brand of pepsi is high on your sale?

a. yes

b. no

c. cant say

Q.17. . What %tage increase in sale you get after the schemes offered by PEPSI?

a. 5-15%

b.25- 30%

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c. more than 50

Q.18

200 ML 300ML

STOCK REGULAR

PCI CCX PCY CCX

600 ML 2 LIT

STOCK PET

PCI CCX PCI CCX

124