starting pages of pepsi project
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A
PROJECT REPORT
+++++++++++++++
AS A PARTIAL FULFILLMENT FOR THE AWARD
OF THE DEGREE OF
BACHELOR OF MANAGEMENT STUDIES
SESSION : 2010- 2011
SUBMITTED BY SUBMITTED TO:Vinod . N . Malviya ..
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ACKNOWLEDGEMENTACKNOWLEDGEMENT
.... Mr. Vikas Gautam (Sr. Customer Executive) and Mr. Pankaj SharmaMr. Vikas Gautam (Sr. Customer Executive) and Mr. Pankaj Sharma
(Customer Executive) ..(Customer Executive) ..
NAME.
T.Y.BMS.T.Y.BMS.
EXECUTIVE - SUMMARY
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Market demand of Mirinda-O vis--vis Fanta
Market demand of Mirinda-L vis--vis Limca, Mountain dew, Sprite and 7up
Market demand of Slice vis--vis Maaza.
Market comparison of all the available brands of the soft drinks in the market.
Brands availability of Coca-cola and its brands vis--vis Pepsi and its brands.
A BRIEF DESCRIPTION OF THE FINDINGS:
1. Extent to which merchandising assets are being used by the
retailers in promoting the brands: -
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evening in order to see there visibility. In these cases some glaring facts were found.
(Areas which were looking like monopoly markets of Coca-Cola because of its Red-
color during the day had altogether a different look in the evening. They turned into
Pepsimonopoly during the evening because of the GSB's. Researcher have also tried
to find out what are the difficulties retailers are facing on using these brands up to 100%
of their strength.
2. Market demand of each of Pepsis product vis--vis to their
competitor flavours in Coca-Cola's artillery: -
For this, retailers were asked about the market demand of the
different brands and they have been asked to rank the brands with respect to their
competitive flavors. In this also some interesting facts came out like no lemon brand
exists in front of Pepsi.
OurMountain dew, which we were thinking that it will be competing
with Limca, actually it is grabbing the Coca-Cola'sSprites market and Pepsis,7up's
market. In case ofMirinda (O) and Coca-Cola's Fanta, Mirindas market is going up
day by day.
In case of mango drinks Slice even after entering the market so late
has been able to quickly pick up with Maaza From the day Tetra Slice has entered the
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4. Brands/ Pack availability of Coca-cola and its brands vis--vis
Pepsi and its brands: -
For this study, retailers were asked that how many bottles they are
having in their fridge and how many of them are of the brand whose fridge they are
having and about the capacity of their fridge. In spite of these findings Researcher have
worked on some other things like retailers expectations from the company. He tried to
find out how the company can increase the sales. In the answer to this some funny
recommendations came up (some consumers recommended that Pepsi should change
the percentage of the sweetening content of its cola drinks).
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ABOUT RKJ GROUP
Welcome to our Group website, designed to open up our
business and inform you about RKJ Group. With the
rapid advancement of technology, the Internet is themost efficient way to give you up to date and easily
accessible information. We hope you find this website a
useful and effective way of learning more about RKJ
Group.
ABOUT US:
It can be said with absolute certainty that the RKJ Group has
carved out a special niche for itself. Our 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.
Th b i f th t t d i 1991 ith ti ith P i F d
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We diversified into education by opening our first school in
Gurgaon under management of Delhi Public School Society. The schools of the
group are run under a Registered Trust namely Champa Devi Jaipuria
Charitable Trust.
Companies are medium sized, professionally managed,
unlisted and closely held between Indian Promoters and foreign collaborators.
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 PepsiCos
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
Our Success
Weatherup, President of Pepsi Cola Company.
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Our People
At RKJ we are creating an environment where our employees
enjoy a greater degree of empowerment - both individually and in their work
teams.
Our employees are equipped with the necessary tools, training
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FOOD.
The last decade has been a period of dynamic growth for non-
alcoholic drinks and has witnessed completely new segment of
the food market in India taking shape. To capitalize on the RKJ
groups significantly important relationship with Pepsi Foods, it
decided to venture into Foods sector, which is second largest
business for Pepsi all over the world. Fast food is the most happening things
across the world. The group 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. Out of 56 operational
Pizza Hut restaurants in the country 27 restaurants are owned and run by its
company. These restaurants are located at Defence Colony, Alaknanda, Vikas
Puri, Green Park, Karol Bagh, New Friends Colony, Connaught Place, Basant
Lok, Greater Kailash, Jaipur (2), Agra, Noida (2), Faridabad (2), Chandigarh (2),
Ludhiana, Jallandhar, Amritsar, Gurgaon (3), Kushambi(Ghaziabd) and Kolkatta
(2).
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EDUCATION
The R K J Group has been associated with excellence in
education. It strongly believes that investment in quality
care and education for young minds is essential for the
future growth and development of our country. The
groups foray into the school education is intended to
provide exceptional opportunities for the development of the academic abilities of
the students. The schools run by the group encourage students to become
creative, innovative and imaginative. They have a wide range of co-curricular
activities, which are as important as the academic disciplines.
School life merges with a plethora of activities to suit every
schedule, talent and interest in the areas like indoor and outdoor games,
swimming, art and culture, music and drama, Yoga and martial arts, community
service, etc. The school's approach to education has been designed to ensure
that the students realize their true potential and grow up to become complete
individuals and responsible citizens.
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The Group has entered into a join venture partnership withModern Montessori International (MMI) Singapore, to open
pre-school educational institutions across the country.
Forming a new entity, Modern Montessori International (MMI)
India in which the Group will have 51 per cent equity stake,
the company invests Rs 200-crore investment in the Indian operations in the nextfive years.
MMI India plans to open four schools by April 2004 and as
many as 14 schools by 2005. The company will be opening its first school in
Gurgaon. The long-term agenda includes.
The R K J Group has been associated with excellence ineducation. It strongly believes that investment in quality care and education for
young minds is essential for the future growth and development of our country.
The groups foray into the school education is intended to provide exceptional
opportunities for the development of the academic abilities of the students. The
schools run by the group encourage students to become creative, innovative andimaginative. They have a wide range of co-curricular activities,
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VARUN BEVERAGES LTD.
COMPANY PROFILE
Varun Beverages Ltd. is a FOBO Franchisee Oriented Bottling Operation of
Pepsi, headed by Mr. Ravi jaipuria.
Year of establishment 1993
Corporate Office F-34, Sec-6 Noida (U.P.)
Manufacturing Facilities (a) Varun Beverages Ltd.
Surajpur plant, Greater Noida (U.P.)
(b) Agra Beverages Agra (U.P.)
(c) Varun beverages, Jaipur (Raj.)
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VARUN BEVERAGES LTD.
Mr.. R.K. Jaipuria who heads Varun Beverages Ltd. and has
been adjudged Best Pepsi Bottler of the world for the current year. He was
presented with the Donaid M. Kondell Bottler of the year award, the highest
honour to any franchisee.
He is thoroughly experienced in setting-up and running
Pepsi Cola Bottling Plant in India. The past experience of the family in beverage
industry is since the sixties when it had the first franchise at Agra. Family has in
total 12 bottling plants in Indian and produces and markets 40% of the Pepsi
requirement in India. The plants are located at Greater Noida, Jaipur, Delhi,
Agra, Nagpur, Hyderabad, Raipur, Vishakapatnam, Guntur, Bhopal and Cuttack.
Group also has got franchise for Kwality Walls Ice Cream from Brooke Bond
Lipton India Limited. As Franchisee for Kwality Walls Ice Cream from M/s Brooke
Bond Ltd
1. The group caters to the ice creams demand for the state
of U.P The group owns state-of- art facilities to manufacture Ice Cream at
Agra. Recently Group has also signed a franchise agreement with Tricon
Restaurants (India) Pvt Ltd to start a chain of restaurants in northern India
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COMPANY PROFILE
VISION OF THE COMPANY:
Satisfying the end consumer, and provide value to each
penny he is spending in buying cold drink.
MISSION OF THE COMPANY:
To provide quality soft drink to the consumer or market.
PEPSI-COLA COMPANY, HEADQUARTEREDIN NEW YORKISTHEGLOBALBEVERAGEDIVISION
OFPEPSICO. INC.
Pepsi-Cola was founded at the turn of the century by Caleb
Bradham, a New Bern, N.C. druggist who first formulated the beverage. Today,
Brand Pepsi and other Pepsi-Cola North America products including Diet
Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands account for nearly
one-third of total soft drink sales in the United States, a consumer market totalingabout $56 billion. Pepsi-Cola beverages are available in about 170 countries.
Pepsi Cola North America also makes and markets ready to drink iced teas and
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PepsiCo. Mission Statement:
PepsiCo's overall mission is to increase the value of our
shareholder's investment. We do this through sales growth, cost controls and
wise investment of resources. We believe our commercial success depends
upon offering quality and value to our consumers and customers; providing
products that are safe, wholesome, economically efficient and environmentally
sound; and providing a fair return to our investors while adhering to the highest
standards of integrity.
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Environmental Commitment
Pepsico. Inc. serves consumers in two major businesses:
beverages and snack foods. The company consists of Pepsi-Cola Company, the
worlds second largest beverage company, Tropicana Products, Inc. the worlds
largest marketer and producer of branded juices and Frito-Lay Company, the
worlds largest manufacturer and distributor of snack chips. Pepsico. brand
names are among the best known and our operations reach every corner of the
world.
As a consumer products company, Pepsico. does not
have the major environmental problems of heavy industry. Our biggest environ-
mental challenge is packaging generated by our products. Packaging is
important to public health and a critical component of the distribu-tion system that
delivers products to consumers and commercial establishments. To meet both
consumer demand and safeguard the environment we recycle reuse and
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CORPORATE OVERVIEW:
Pepsico. Inc. is among the most successful consumer products company in the
world, with 1999 revenues of over $20 billion and 1,16,000 employees. Thecompany consists of: Frito-Lay Company, the largest manufacturer and
distributor of snack chips; Pepsi-Cola Company, the second largest soft drink
business and Tropicana Products, the largest marketer and producer of branded
juice. Pepsico. brands are among the best known and most respected in the
world and are available in about 190 countries and territories.
Some of Pepsico.'s brand names are 100 years old, but the
corporation is relatively young. Pepsico. Inc. was founded in 1965 through the
merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998.
Pepsico.'s success is the result of superior products, high
standards of performance distinctive competitive strategies and the high integrity
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PEPSICO. HEADQUARTERS:
PepsiCo. Inc. World Headquarters is located in New York
City. The seven-building headquarters complex was designed by Edward Durrell
Stone, one of America's foremost architects. The building occupies 10 acres of a
144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a
world acclaimed sculpture collection in a garden setting.
The collection of works is focused on major twentieth
century art, and features works by masters such as Auguste Rodin, Henri
Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro
and Claes Oldenberg. The gardens were originally designed by the world famous
garden planner, Russell Page. The grounds are open to the public, and a visitor's
booth is in operation during the spring and summer.
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BEVERAGES
Pepsi-Cola Company:_-
PepsiCos beverage business was founded at the turn of the
century by Caleb Bradham, a New Bern, NC druggist who first formulated Pepsi-Cola. Today consumers spend about $32 billion on Pepsi-Cola beverages. Brand
Pepsi and other Pepsi-Cola products - including Diet Pepsi, Pepsi-One, Mountain
Dew, Slice and Mug brands - account for nearly one-third of total soft drink sales
in the United States, a consumer market totaling about $58 billion.
In 1992 Pepsi-Cola formed a partnership with Thomas J.
Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the
United States. Outside the United States, Pepsi-Cola Company's soft drink
operations include the business of Seven-Up International. Pepsi-Cola
beverages are available in about 160 countries.
Pepsi Cola provides advertising marketing sales and
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Pepsico. Products:
PepsiCo. Has hundreds of brands. These are some of the best known.
Pepsi-Cola Brands
Pepsi-Cola
Diet Pepsi
Mirinda
Mountain Dew
Lipton Teas (Partnership)
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INDUSTRY PROFILE (INDIA)
Pepsi, for once on the defensive, is getting lucky the men in blue arent
just looking cute, theyre rocking.
The glass will not crack this summer. Crates will not melt either,
as coke and Pepsi vow to keep them chilled and moving all the time. Theres
frenzied excitement at Pepsi. This year, believe analyst, will be different. After all,
soft drinks have hit the magical price point of Rs 5. And the two cola majors see
hords of sticky consumer looming large. The agenda before the two cola giants is
to expand the market, rather than indulge in a muddy street fight.
For years, soft drink rivals have been gnawing at each other, sneering at each
others claim and counter claim, comparing market shares, finding flaws in the
methodologies of retail audits and making a noise about them, whenever they
are favorable. In this age old rivalry there was little for consumers to cheer about.
They found it about as interesting as youd find a neighborhood
brawl.But something changed a few months ago. In October last year coke
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Current situation is that the soft drinks have hit the magical priceof Rs. 5; agenda is to expand the market penetration deeper into the existing
one.
KEY POINTSKEY POINTS
BASIS COKE PEPSI
Strategies used
1) Investment
Firstly, it reduced the
price to Rs.5 for 200ml to
attract new customer
with rural market support
by making it available at
the price of Tea, Coffee
etc.
It followed that to catch
new consumer and to
increase availability of
product to satisfy demand
which finally will lead to
have in-depth penetration
in homes.
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Brand Range
New Launch
AMBAssador
Coca-Cola
Thums-up
Limca
Fanta
Chota Coke at Rs 5
Pepsi
Mirinda
7-up
Mountain Dew
500 ml Pepsi ( Diet Pepsi)
Mountain Dew
2 liter PET Bottle
COMPANY PROFILE: -
VISION OF THE COMPANY
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America, manufacturer and marketer of ready-to-eat cereals and other foodproducts. PepsiCo brands are available in nearly 200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of
Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged
with The Quaker Oats Company, including Gatorade, in 2001.
PepsiCos success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of our
people.
Our mission is to be the world's premier consumer products company focused on
convenience foods 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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GLOBAL PARTNERS
Frito-Lay North America and Frito-Lay International
PepsiCo's snack food operations had their start in 1932
when two separate events took place. In San Antonio, Texas, Elmer Doolinbought the recipe for an unknown food product a corn chip and started an
entirely new industry. The product was Fritos brand corn chips, and his firm
became the Frito Company.
That same year in Nashville, Tennessee, Herman W. Lay
started his own business distributing potato chips. Mr. Lay later bought thecompany that supplied him with product and changed its name to H.W. Lay
Company. The Frito Company and H.W. Lay Company merged in 1961 to
become Frito-Lay, Inc.
Today, Frito-Lay brands account more than half of the U.S.
snack chip industry.PepsiCo began its international snack food operations in
1966. Today, with operations in more than 40 countries, it is the leading
multinational snack chip company, accounting for more than one quarter of
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chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks.Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers.
Pepsi-Cola North America and PepsiCo Beverages International
Caleb Bradham, a New Bern, North Carolina druggist,
who first formulated Pepsi-Cola, founded PepsiCos beverage business at the
turn of the century. Today consumers spend about $33 billion on Pepsi-Cola
beverages. Brand Pepsi and other Pepsi-Cola products including Diet Pepsi,
Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands account for
nearly one-third of total soft drink sales in the United States, a consumer market
totaling about $60 billion.
Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina
bottled water, Fruitworks and All Sport.
In 1992 Pepsi-Cola formed a partnership with Thomas J.
Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the
United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee
through a partnership with Starbucks.
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PepsiCo Beverages International also produces, sells and distributes Gatoradesports drinks as well as Tropicana and other juices internationally.
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 Pepsi-Cola brands young.
The company manufactures and sells soft drink
concentrate to Pepsi-Cola bottlers. The company also provides fountain
beverage products.
Gatorade/Tropicana North America
Anthony Rossi as a Florida fruit packaging business
founded Tropicana in 1947. The company entered the concentrate orange juice
business in 1949, registering Tropicana as a trademark.In 1954 Rossi pioneered
a pasteurization process for orange juice. For the first time, consumers could
enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a
ready-to-serve package. The juice, Tropicana Pure Premium, became the
companys flagship product.In 1957 the name of the company was changed to
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acquired by the Quaker Oats Company in 1983 and became a part of PepsiCowith the merger in 2001.
QUAKER FOODS NORTH AMERICA
The Quaker Oats Company was formed in 1901 when several
American pioneers in oat milling came together to incorporate. In Ravenna, Ohio,
Henry D. Seymour and William Heston had established the Quaker Mill
Company and registered the now famous trademark. Seymour wanted his
product to be a symbol of honesty, integrity and strength. The figures of a man in
Quaker clothes became the first registered trademark for breakfast cereal and
remain the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart
and his son, Robert, and their partner, George Douglas, operated the largest
cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King,"
had founded German Mills American Oatmeal Company in 1856.
Combining The Quaker Mill Company with the Stuart and
Schumacher businesses brought together the top oats milling expertise in the
country as The Quaker Oats Company. The first major acquisition of the
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CAREER OPPORTUNITIES AT
PEPSICO. WORLDWIDE HEADQUARTERS:
Pepsico., Inc. is a worldwide leader in vast and growing markets: beverages,
snack foods and juices. Our company's brands, which include Pepsi-Cola, Frito-Lay and Tropicana, are among the best known and most successful in the world.
Our continued growth has created outstanding career opportunities for talented
professionals in a variety of specialized fields at our corporate world
headquarters, located in NEW YORK. We are always looking for good people in
the areas of: Information Technology
Treasury
Tax
Human Resources
Law
A ti
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SWOT ANALYSIS
STRENGTHS:
Company belongs to the FMCG sector so the demand will never die.
A large and strong distribution network. (In comparison to the other
competitive brand Pepsi is having better reach to the market.)
Professional and dedicated manpower. (Starting from the higher-level
management to the sales-man Pepsis employees is having great degree
of dedication and professional attitude towards selling the products. On
the other hand companies operational staff always try their maximum
strength to meet the demand and utilize the recourses to maximum.)
More emphasis on market penetration (Companies efforts of providing the
Pepsi and other products to the customers doorstep are working vis--vis
wherever the transportation is not possible dealers are appointed).
In comparison to Coca-Colas red color, which is brighter and have more
visibility Pepsis blue color provide sense of relax ness in the bright sunny
day.
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WEAKNESS:
Coca-Colas red color has more visibility than Pepsis blue color. (Because
of the bright color of Coca-Cola it is more visible even from the distance
as compared to Pepsi)
Pepsis sinages are far more scattered as compared to Coca-Cola.
(Because of this at some places it looks that the market is captured by
Coca-Cola.).
Low plant capacity because of which company is not able to meet its
demand during the peak season (Varun Beverages India Ltd., Pepsis
Greater Noida plant has one continuous assembly line for preparing tetra
and four continuous assembly lines which are filling around 15,000
bottle/day, which is insufficient to complete the demand during the peak
seasons.).
Lesser plant utilization during the off-peak seasons (During the winterseason as the demand is very low, plant and resource utilization goes
down.)
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In the rural areas Pepsico.s distribution network is far stronger vis--vis toany of the competitor. Therefore it is viable to make it more stronger,
as this can restrict the entry of the other brands in the rural market.
Kids demand for the Mirinda more as compared to any other orange flavor
soft drink brand.
With the launch of slice tetra Pepsico. has entered in to one more segment o soft
drink beverages, which was more or less captured by the Frooti till now.
THREATS:-
Not able to meet the market demand during the peak season. (As theplant capacity is very low the company is not able to meet the existing
demand during the peak seasons).
There is lot of complaints are coming up about the impurities or leakage of
gas or leakage of carbonated water. (Within the last 30 days I met around
50 such complaints because of which retailers were very angry with thecompany).
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MARKETING STRATEGIES
1) Pepsi sales club:
This club is for the retailers. In this approach retailers are given some points
once in a month depending upon how they are using the display material
provided by the company to them. This material consists of Fridges, DPS
Boards, Glow Sign Boards, Display Bottles (500ml. 1lt. 2lt, Commodity
Packs, Stands, Posters etc. Depending upon these points retailers are
rewarded by certain gifts from the company.
The retailers are participating in these schemes curiously. But few of the retailers
found furious and angry because they had lost the points because of
miscommunication or lack of guidance. Therefore they need some kind of
guidance from the company. It would be a better idea that our salesman who
are distributing the beverages to the retailers can be equipped by the
appropriate training so that they can guide the retailers about how to use
their display material to 100% of their strength and able to tell about the new
schemes convincingly.
2) Schemes:
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These schemes keep on changing depending upon the stock. Beveragescompanies are giving these schemes despite of acute shortage of soft drink in
every segment to meet the competition, to make sure the availability their brands
and sometimes to satisfy and benefit the retailers and the end consumers.
3) Advertising:
Through the consumers survey it has been proved that the T.V. commercials and
sinages affect the consumer buying behaviour by approximately 70%. May be
only Pepsico. is investing huge finances in the T.V. commercials and other
sinages, big names of Indian film industries and sports heros are being
proposed to become the brand promoters and brand ambassadors. Sachin
Tendulkar, Amitabh Bachhan, Karina Kapoor and more are being offered hugeamount for carrying out the promotions. Pepsis T.V. advertisement in which
Sachin Tendulkar whistles at the end has maximum recall value. Other than this
world cup 2003 advertisement campaign that comprises of Sachin Tendulkar,
Shane Warne and Carl Hooper, advertisement campaign which comprises of
Amitabh Bachhan, Karina Kapoor and Adnan Sami and latest advertisements ofPepsi and Mountain Dew (Do the Dew) are very famous. Few of the areas
through which advertising is being done are as follows:
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4) Promotion through restaurants and cinema hall holdings:
Pepsi co. is tying up with different chains of restaurants and fast
food centers like Pizza Hut to promote the Pepsi and its other brands like
Mirinda, Mountain Dew etc. these restaurants are authorized to keep and use the
merchandising assets of Pepsi. Usually these kinds of restaurants and fast food
chains are in contract with the Pepsi Co., so that they cannot promote any otherbrand.
5) Merchandising assets:
Pepsi Co. also try to promote their brands by providing their
retailers and dealers some display items. Some of such items are as follows:
1. Fridges
2. Pepsi/mountain due stands
3. Display bottles
4. Posters
Pepsi Co. provide the above things to the retailers to use them in promoting
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6) Strengthen distribution network and promotions through
word of mouth through sales man:
Unlike the rival brand Coca-Cola, Pepsi Co. Basically depends upon its sales
man for promoting and launching the new as well as old brands because instead
of doing the business through dealers network like Coca-Cola, Pepsico. believes
in making and maintaining relations with retailers directly. Therefore salesman is
the very important part of Pepsico. marketing strategy.
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INTRODUCTION
Every year with the start of summers in India the real race to quench the thirst of
the consumers begins in the soft drink beverages industry. Every year millions
participate in it, either in the hot sun or sitting at home watching their, sipping the
soft drink and watching the newly launched advertisements.
Soft drinks manufacturers in India face a number of major problems, such as
distribution difficulties. Access to the 500,000 villages is limited due to the poor
road network. Inconsistent tax policies, the prevalence of duplicates, hefty
packaging costs and India's seasonal nature are other factors holding back
growth.
During New Year the two of the largest soft drink giants in India Pepsi and Coca-
Cola start experiments with products, packages, flavors and prices in an effort to
boost their market share. For this the biggies make huge investments in terms of
advertising, setting up new and more productive and modernized plants,
improving the distribution network to get better reach to the end consumer.
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Researcher have tried to find out answers to the above questions in his researchwork, which researcher has conducted during his summer training during the
partial fulfillment of his MBA programme. The objective of report is as follows: -
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RESEARCH OBJECTIVE
To find out to which extent merchandising assets are being used by the
retailers in promoting the products of the Pepsi.
To find out market demand of Pepsi vis--vis Coca Cola and Thums up.
To find out market demand of Mirinda-O vis--vis Fanta
To find out market demand of Mirinda-L vis--vis Limca, Mountain dew,
Sprite and 7up.
To find out market demand of Slice vis--vis Maaza.
To find out market comparison of all the available brands of the soft drinks
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RESEARCH METHODOLOGY
Researcher began his survey with route riding, i.e. travelling along with the sales
persons on his daily trip to service the retailers. Researcher asked the retailers
about their uses of Pepsi merchandises and try to Asses the market share thePepsis different brands. This is very important point as it gave me an inside view
of the whole setup and further on during the planning of any of the promotions.
Researcher was aware of the limitations and strengths of the environment he
would be working in. The various methods and principles adopted are listed
below:
Research Plan:
Date sources: sources of information are as follows:
(1) Primary sources
Whos the primary source??
Consumers are the primary source.
(2) Secondary sources Researcher collected secondary information from
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Research instrument:
Researcher used questionnaire as his instrument for conducting the survey.
Sampling Plan
(1) Sampling unit Retailers
(2) Sampling procedure- Simple Random Sampling Procedure.
Contact Method
Researcher personally contacted the retailers.
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DATA ANALYSIS & FINDINGS
FFIGUREIGURE 11
Out of Coca-Cola and Pepsi Beverages India Limited
whose GSB do you have ?
PBI
11%
Coca-Cola
14%
Both
5%
None
70%
PBI
Coca-Cola
Both
None
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FFIGUREIGURE 22
Ranking according to visibility - Pepsi ?
72%
14%
14%
Rank 1
Rank 2
Rank 3
Ranking according to visibility - Coca Cola ?
49%
38%
13%
Rank 1
Rank 2
Rank 3
72% of the shops having Pepsi GSBs got the 1strank according to their
visibility status on the other hand only 14% of the retailers got the rank 2nd
and 3rd each. This shows that retailers who got the GSB as display
material from the company are using them satisfyingly.
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FFIGUREIGURE 33
Out of Coca-Cola and Pepsi Beverages India Limited
whose DPS Board do you have ?
PBI
27%
Coca-Cola
8%
Both
3%
None
62%
PBI
Coca-ColaBoth
None
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FFIGUREIGURE 44
Ranking according to visibility - Pepsi ?
82%
18%0%
Rank 1
Rank 2
Rank 3
Ranking according to visibility - Coca Cola ?
70%
18%
12%
Rank 1
Rank 2
Rank 3
82% of the shops having Pepsico. DPS Boards got the rank 1staccording
to their visibility status on the other hand 18% of the retailers got theranks2nd and nobody got the 3rd. This shows that retailers who got the
DPS Boards as display material from the company are using them
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FFIGUREIGURE 55
Out of the sample size, which has been covered 32 % of the shops, had
Out of Coca-Cola and Pepsi Beverages IndiaLimited
Whose Refrigerator do you have ?
PBI
32%
Coca-Cola30%
Both11%
Own27%
PBI
Coca-Cola
BothOwn
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FIGURE 6FIGURE 6
Ranking according to visibility - Pepsi ?
68%
24%
8%
Rank 1
Rank 2
Rank 3
Ranking according to visibility - Coca Cola ?
33%
67%
0%
Rank 1
Rank 2
Rank 3
68% of the shops having Pepsico. refrigerators got the rank 1staccording
to their visibility status on the other hand only 24% of the retailers got the
ranks2nd and 8% of the retailers got the rank 3rd. This shows that retailers
who got the refrigerators as display material from the company are not usingthem satisfyingly.
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FIGURE 7FIGURE 7
PB I, 426
Coca-Cola, 33
0
50 0
1000
1500
2000
2500
3000
3500
4000
4500
PB I Coca-Cola
How m any Bottles of PB I/ Coca-Cola do you
yo ur fridg e
P BI
Coca-Col
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FFIGUREIGURE88
Availabity Comparision between Pepsi and Coca-Cola atthe Outlets - using Pepsi Merchandising
Asset
PBI56%
Coca-Cola44% PBI
Coca-Cola
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FFIGUREIGURE 99
Reasons for not optimum use of Refrigerator / Ice Box
at outlets ?
Shortage
13%
Problem of the
Empty bottle
17%
Irregularity of theSalesman
34%
Other
36%
Shortage
Problem of the Empty
bottle
Irregularity of the Salesman
Other
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FFIGUREIGURE 1010
Other Reasons for low optimum use of Pepsi's Assets
Low Demand34%
Smaller Fridge33%
Unfulfilledpromises fromthe Company
Representatives22%
Others11% Low Demand
Smaller Fridge
Unfulfilled promises from theCompany Representatives
Others
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refrigerators.
Out of the 36% other major reasons low demand (33%) and
lesser capacity refrigerators (34%) got the maximum share.
Despite of all the above there are even major number of
retailers who lame it to the unfulfilled promises from thecompany professionals.
FFIGUREIGURE 1111
Approximate sale of the retailer
40
50
60
70
80
90
100
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FFIGUREIGURE 1212
Approximate sale of the retailer
0.5 to 2
8%
3 to 5
46%6 to 10
28%
More Than 10
18%
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FFIGUREIGURE 1313
How the retailler gets display material from the
company ?
30
40
50
60
70
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FFIGUREIGURE 1414
How the retailler gets display material from the
company ?
Gift
40%
Sharing / Draft
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FFIGUREIGURE 1515
Market Demand of different packings of Soft-Drinks
2lt
26%
1lt
7%
500ml
14%300ml
23%
200ml30% 2lt
1lt
500ml
300ml
200ml
This gives us an indication, where the better prospects lies. In which
particular type of packing little innovation can do wonders. This providesus with an idea where we should concentrate.
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FFIGUREIGURE 1818
Mirinda-O, 260
Fanta, 285
240
250
260
270
280
290
Mirinda-O Fanta
S1
Market Demand of Softdrink ( Orange )
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FFIGUREIGURE 1919
Market Demand of Softdrink ( Orange )
Mirinda-O
48%
Fanta
52%
Sample size shows the comparison between the market demands of each
of Orange drink.
60%
40%
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FFIGUREIGURE 2020
Market Demand of Softdrink ( Lemon )
Mirinda-L27%
Limca
31%
Mountain Dew28%
Sprite
9%
7 Up
5%
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FFIGUREIGURE 2121
Mirinda-L, 735
Limca, 865Mountain Dew,
770 Sprite, 235
7 Up, 123
0
200
400
600
800
1000
Mirinda-L Limca Mountain
Dew
Sprite7 Up
S1
Market Demand of Softdrink ( Lemon )
Sample size shows the comparison between the market demands of each
of Lemon drinks available in the market
Limca in the lemon flavour with the market demand share of 31% is
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FFIGUREIGURE 2323
Market Demand of Softdrink ( Mango )
Slice, 300
Mazza, 290
Sample size shows the comparison between the market demands of each
of Mango drinks available in the market
Slice and Mazza is almost head to head with 52% and 48% market
demand. Though Slice is having 4% more share than Mazza.
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LIMITATION
Despite the possible efforts in conducting the research, there were
some unavoidable situations, which limited the scope of the project.
Considering the population, the sample taken for present study seems
small and hence further investigation may be required.
The sample taken for study was not of equal distribution so a
comparative study cannot be made.
Some of the retailers were non-cooperative in giving information, which
hampered the actual calculation.
Time available for research was very short so certain aspects have
been overlooked.
Retailers were hesitant to provide the complete information due to fear
of misuse of information.
Respondents may sometimes misinterpret the questions, leading to a
different answer.
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6. Though the GSBs and DPS Boards are being used by the retailers
satisfyingly but still there is need of the guidance for the retailers.
7. Schemes should be transparent and made clear to the retaikers.
8. As maximum number of retailers are selling around 3 to 5 crates
daily. Our schemes should be revolving around this percentage
only. And while formatting the different schemes this should be kept
in mind.
9. For this salesman can be provided with some kind of guidance/
training, so that they can clear the queries of the customers about
the different schemes/ proposals
10.Retailer benefit schemes, which the company launches time by
time during the whole year, must be made clear to all the retailers.
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74
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CONCLUSIONCONCLUSION
After conducting the research, Researcher found that there are two categories of
retailers. The first one is of those retailers, which just want to increase their
assets, for them the sale doesnt matter according to them they can onlyincrease the sale if the company will invest in them or in their shops. These types
f t il ill l k f th hi h i t i th h l A d if t
75
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these retailers must not do the false promises. Due to this retailers loose their
confidence in the company.
There is also the need of the transparent schemes and marketing mix that the
retailers can understand more properly.
QUESTIONNAIRE
Name of the SHOP ____________________ Tel No.
___________________________
ADDRESS
__________________________________________________________
1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?
76
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RANKINGACCORDINGTOVISIBILITY?
1 2 3
3 OUTOFCOCA-COLAAND PEPSIBEVERAGES INDIALIMITEDWHOSEREFRIGERATORDOYOU
HAVE?
A. PBI B COCA-COLA C BOTH D NONE
RANKINGACCORDINGTOVISIBILITY?
1 2 3
4 HOWMANY BOTTLESOF PBI DOYOUHAVEINYOURFRIDGE?
PBI TOTAL
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7 HOWDOYOUGETTHEDISPLAYMATERIALFROMTHECOMPANY?
a. SCHEMES B GIFT C SHARING / DRAFT D OTHER
8 PLEASERANKTHEFOLLOWINGACCORDINGTOTHEMARKETDEMAND?
( ) 2 LT. ( ) 1 LT ( ) 500 ML ( ) 300 ML ( ) 200 ML
9 PLEASERANKTHEFOLLOWINGACCORDINGTOTHEMARKETDEMAND?
A. ( ) PEPSI ( ) COCA-COLA ( ) THUMS-UP
B. ( ) MIRINDA-O ( ) FANTA
C. ( ) MIRINDA L ( ) LIMCA ( ) MOUNTAIN-DEW ( ) SPRITE
( ) 7-UP
D. ( ) SLICE ( ) MAAZA
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BIBLIOGRAPHY
Name of the books used for the reference and their authors.
1. Principles of Marketing - Kotler Philip
1. Research Methodology - Kothari C.R.
2. Market Research - Sharma D.D.
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MAGAZINES
4 PS
Time Education Magazine
Times of India
PRICE LIST
200 ML Rate-146/caret
300 ML Rate-192/caret
600 ML Rate-444/caret
600 ML(slice) Rate-456/caret
2000 ML Rate-369/pet
2000 ML(Miranda) Rate-324/pet
Tatra (slice) Rate 218 /pet
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EDS FORMAT
S
.No.
Outlet
Name
Addres
s
Contact
Person
Chan
nel
Status
PBI/CCX
Glass VISI OYC ICE BOXSIGNAGE
Wall Paint DPS GSBPBI CCX PBI CCX OWN PBI CCX PBI CCX PBI CCX PBI CCX PBI CCX