A SUMMER TRAINING REPORT

ON

MARKET EVALUATION OF PEPSI

Submitted in partial fulfillment of the requirement for the degree of Master of Business Administration

SUBMITTED TO: SUBMITTED BY:

Ms. SHWETA SINGH SYED YASIR IQBALDirector-C-MAT Roll No. 0914970056

MBA-3rd SemBatch: 2009-11

UNDER THE GUIDANCE OF

MR. KIRTI SINHA

CENTRE FOR MANAGEMENT TECHNOLOGYPlot No. 25, 27, 28, Knowledge Part-I, Gr. Noida

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ACKNOWLEDGEMENT

Surpassing milestones towards a mission sometimes gives us such degree of jubilance that we tend to forget the precious guidance and help extended by the people to whom the success of mission is solely dedicated.

I would also like to thank Mr. Kirti Sinha, [Course Coordinator] in C-MAT, Greater NOIDA who helped me in the completion of this project.

(SYED YASIR IQBAL)

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TABLE OF CONTENTS

Preface 003

Acknowledgements 006

Certificate 011

Introduction 012

Company profile 015

History 020

Objective of study 037

Product offered 052

Swot Analysis 055

Research methodology 057

Presentation of data 064

Analysis 086

Findings 089

Conclusion 092

Limitations 094

Recommendations 096

Bibliography 099

Questionnaire(annexure) 101

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PREFACE

4

PREFACE

Summer training is an integral part of management courses. Summer

training experience refers to knowledge and skills acquired by a

student by participation in activities performed by professional. It is

distinct from an education in which theoretical knowledge is acquired.

The ability to develop solutions to practical through application

of theoretical knowledge is acquired by management students in the

course of their summer training. It also helps the students to develop

professional competence and related skills as also to imbibe certain

ethical values and norms expected of professionals.

The soft drink industry has entered to booming phase and soft

drink is available everywhere like water. To monopolize market

powerful projects are undertaken. This project is an endeavor in that

direction.

The development of soft drink market it is necessary to touch all

areas and the soft drink should be available in rural areas as well as in

urban sector, now the companies are focusing on rural market and the

strategies for that are made and market research for the promotion is

needed. These are mainly PEPSICO. INDIA HOLDINGS (PVT.) LTD

and COCA COLA (PVT) LTD.

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The soft drink industry is also characterized by small players in

the local market who produce soft drinks and fruit beverages to meet

the local demand. At present Indian market is also less organized & not

much branded. The Indian consumers, on an average, has also not

awakened to the fact that there are a numbers of soft drinks and fruit

beverage available in tetra packs and glass are hygienic and healthy to

consume.

To grab the rural market share, all the players are doing

continues innovation on every front of marketing mix ranging form

product, place, prince, promotions and packaging in various colors,

sizes, flavors & packages.

In the process of marketing distributors, retailers & consumers

all are considered as major elements, on the motivation of these

channels have gained a lot of importance.

Pepsi’s contribution of soft drinks and grabbing the market share

make it more renowned among the competitors. The company

targeting, the major competitors of soft drinks with the weapons of

marketing mix tools. Due to its position as would be leader in soft drink

in urban areas, this fact faster the smooth increase in rural market of

soft drinks in India.

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This project focuses on the rural sales promotion and mapping

in Itaunja, Kursi road Chinhat, and malihabad tehsils in Lucknow

districts in months of June, July .

The contents of this report have been carefully planned. All the

analysis is based on primary data.

The report has been written in lucid language and necessary

data and chart are used for easy understanding.

I am hopeful that the reader will find this project useful in

preparing strategy for rural areas.

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ACKNOWLEDGEMENTS

8

ACKNOWLEDGEMENTS

The training will be incomplete without acknowledge giving my sincere,

gratitude to all persons who have helped me in the preparation of this

dissertation.

First of all, I thank “GOD ALIMIGHTY” for the blessings

showered on me throughout this project work, which has helped me in

the successful completion of the training.

I feel privileged in expressing profound sense of gratitude and

indebt ness of Mr. Rajat Lakhani (T.D.M) PepsiCo. Holdings India

(Pvt.) Ltd., Lucknow, who gave me excellent opportunity to work with

Pepsi Family.

I am thankful to Ms. Mallika (A.D.C.) PepsiCo. India Holdings

(Pvt.) Ltd, Lucknow who gave me my project title and guided me to

complete my project. Her valuable guidance, constant encouragement

and inspiration were instrumental in the complexion of this report. She

always allowed me to encroach upon her precious time and showed

her generosity with ideas. I’m thankful to the Mr. Pawan Salooja (CE),

Lucknow constant cooperation and assistance during the project

period.

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I take this opportunity to extend my sincere gratitude and

profound obligation towards my guidance Ms .Kamini Singh , Lecturer

centre for Management tecnology,GR. NOIDA for giving me valuable

suggestions & his inestimable help rendered to me throughout the

project and all other faculty members for without their encouragement

and continuing support, this project would not have been possible.

GAURAV

SRIVASTAVA

M.B.A.III rd Sem

C-MAT GR.NOIDA

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INTRODUCTION

Introduction

“The Goal of PepsiCo – India” is to grabs the market share of soft

drinks as much as possible from the competitors in rural as well as in

urban areas.

The company likes PepsiCo. India is expecting a growth rate

40% in near future in the market of fruit drinks.The soft drink market

has recently witnessed expansion with the entry of several new

players.

Traditionally soft drinks were aimed at Urban areas only but

newly marketing strategies are focused on all areas urban as well as

rural because nearly 70% population of India live in rural areas.

Today, in soft drink market, the market leader is PEPSI with its

Pepsi, Mirinda , 7up dew, 7up ice, Slice, Aquafina and other

competitors are Coca cola with its brands Sprite, Coca cola Thums up,

Maaza, Limca , Bislery (water) and local brands.

Still, the Pepsi Company holds a competitive position in the

market. The company has adopted a mix of strategies to grab the

market shares.

The Pepsi Co. has come up with different flavors of soft drinks

with different packages of 200ml; 300ml, 500ml, 2lt and tetra pack also

various brands available in the soft drink market.

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As the soft drink market is growing with a very fast rate the main

aim behind the launching of new flavors in different packs and different

rural areas leader in the soft drink market.

Vision

To be the best consumer products company in the eyes of the

suppliers, customer, employees and shareholder.

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COMPANY PROFILE

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The Company

The company is divided into business units [BU] with headquarter in

New York. There are nine bus in the whole world. India comes under

the southeast business unit, which also covers the Nepal, Bangladesh

and Sri Lanka.

The Indian headquarter are located at Gurgaon: each business

unit has some market units [MU] under it. In India there are three MUs:-

1. South market unit [SOMU] – whole of south

2. West market unit [WEMU] – Mumbai rest of Maharastra and

Gujrat.

3. Northeast market unit [NEMU] – West Bengal U.P. and

Uttrakhand. Pepsi Co. has world wide operation in three fields:

Business

1. Non-alcoholic beverage

2. Snack food and Fruit Juice

PEPSI Co. Beverage includes:

Pepsi cola North Amer

Pepsi co icala International

In INDIA Pepsi operates as:

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Pepsi foods ltd.

Pepsi India holdings ltd.

Pepsi India marketing company

A north coralina pharmist CALEBBRADHAM concocted Pepsi-cola in

the year 1890 as cure dyspepsia (indigestion).

In 1903, Pepsi-cola trademark was registered Bradham believed

marketing would be the key to Pepsi-cola prosperity and in his first year

of business he spent $1900 on advertising when he sold only 40,000

liter of syrup.

Bradham’s business strategy worked and in 1905, he built

Pepsi’s first bottling plant. There were some more plants followed soon

and in 1907 he was selling 50,000 liters per year in 1909 he hired a

New York advertising agency for promoting the syrup prepared.

Troubles started at the end of the world war when Bradham

overstocked sugar at high price which subsequently dipped to rock

bottom in 1920 by 1922, The Company was insolvent and by 1923, it

went bankrupt, Bradham returned to his pharmacy.

A well street broker ROY MAGARELL stepped in recognized the

company. However the company was running at loss each year and

with the stock market crash in 1929, Megarell was not able to upkeep

the company any longer in 1931, the company went bankrupt a second

time.

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At this Charles Guth president Giant Candy Company, aloft inch

bought the trademark, he experimented without success a number of

options including formula change and sale of company to coca cola.

His success came when he offered 12 ounce at 5% while other

cola were sold at the same price in six ounce bottle.

Yet Richar Tedlow, a harward business school professor says

two soft drinks giants Pepsi and coke have unwritten agreements to

avoid price competition as much as possible.

He says the Pepsi the challenger that showed that the consumer

preferred Pepsi taste in blind test, “was never embarrassed by Pepsi

that the one would have expected”, because executive feared coke

would strike by slashing price and running it.

The retirement of way no call away Pepsi ailing chief executive

at 60 and his replacement by Roger Enrich a 51 year old Pepsi veteran

better known as beverage marketing superstar, commenced analyst

the most exiting one yet.

Merrill lynch Allan Kaplan agrees, “Pepsi is a good company. It

has growth as fast as coke every year for the last ten years infact the

stock has been sow over bought I am not recommending either

company”. Coke trade at 31 times 1996, earning and Pepsi at 22 times.

Pepsi has gone for a change. It ditched its red can as a part of a

part of major global over-haul, backed by the most expensive

advertising blitz ever undertaken after 54 years as a lovable light red

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white and blue can; Pepsi-cola goes electric blue. Pepsi’s blue look

signal a sharpening of the companies focus on its core teenage

audience the new color signifies modernity and everything good,

exciting and dynamic. It is a color that convoy’s refreshment.

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HISTORY

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History

PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief

Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and

Chief Executive Officer of Frito-Lay, through the merger of the two

companies. Pepsi-Cola was created in the late 1890s by Caleb

Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by

the 1961 merger of the Frito Company, founded by Elmer Doolin in

1932, and the H. W. Lay Company, founded by Herman W.Lay, also in

1932. Herman Lay is chairman of the Board of Directors of the new

company; Donald M. 1Kendall is president and chief executive officer.

The new company reports sales of $510 million and has 19,000

employees.2

Major products of the new companies are:

Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi

(1964) and Mountain Dew (introduced by Tip Corporation in 1948.

 Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in

1932), Lay's brand potato chips (created by Herman W. Lay in 1938),

Cheeotos brand cheese flavored snacks (1948), Ruffles brand potato

chips (1958) and Rold Gold brand pretzels (acquired 1961)

1

2

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  1966

Doritos brand tortilla chips are introduced. They are destined to

become the most popular snack chip in the U.S.Pepsi enters Japan

and Eastern Europe.

1967

Pepsi Generation advertising, "Come Alive! You're in the Pepsi

Generation" campaign that named and claimed a whole generation

(1963-67) , introduces new theme: "Taste that beats the others cold

Pepsipours it on

  1968

North American Van Lines (NAVL), a premier transportation company,

joins PepsiCo. NAVL remains a strong contributor to PepsiCo until it is

divested in 1984.

  1969

Bold, modern Pepsi-Cola packaging using red, white and blue is

introduced. "You've got a lot to live, Pepsi's got a lot to give," becomes

the advertising theme Frito-Lay introduces Funyuns brand onion

flavored snacks. Mountain Dew changes its slogan to "Get That

Barefoot Feel in' Drink in ' Mountain Dew."

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1970

PepsiCo sales pass the $1 billion mark. The company has 36,000

employees. PepsiCo moves from New York City to new world

headquarters in Purchase, N.Y. The new corporate headquarters

feature a building by one of America's foremost architects, Edward

Durrell Stone (1902-1978), set on a campus of 144 acres amid an

outdoor sculpture garden. Pepsi is the first company to respond to

consumer preference with light weight recyclable, plastic bottles.

 1971

PepsiCo Chief Executive Officer Donald M. Kendall assumes the

position of chairman of the Board of Directors on the retirement of

Herman W. Lay. Lay maintains an active role in the corporation until his

death December 6, 1982.Andrall E. Pearson is appointed president of

PepsiCo, a position he holds until his retirement in 1984.

1972

Mountain Dew, acquired by Pepsi-Cola in 1964, switches its

advertising and package graphics from hillbillies to action-oriented

scenes. Sales climb and Mountain Dew will become one of the 10 best-

selling soft drinks in the United States

1973

Foods International, later called PepsiCo Foods International (PFI) and

subsequently named Frito-Lay International, is established to market

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snack foods around the world. The third Mountain Dew slogan appears

"Put A Little Yahoo in Your Life."

1974

PepsiCo sales pass the $2 billion mark. Pepsi-Cola becomes the first

American consumer product to be produced, marketed and sold in the

former SovietUnion.

  1975

PepsiCo has 49,000 employees. Pepsi Light, with a distinctive lemon

taste, is introduced as an alternative to traditional diet colas.” Hello

Sunshine" becomes the slogan for Mountain Dew. 

1976

The Pepsi Challenge, introduced in Dallas, Tex. in 1975, becomes a

national campaign. Around the nation, consumers select Pepsi-Cola as

the best tasting cola. Pepsi-Cola becomes the single largest selling soft

drink brand sold in U.S. supermarkets. Advertising campaign is "Have

a Pepsi day!" "Puppies," becomes one of America's best-loved ads.

  1977

PepsiCo acquires Pizza Hut; Inc. Pizza Hut was founded in 1958 by

Dan and Frank Carney. It is spun off along with Taco Bell and KFC

businesses as Tricon Global Restaurants, Inc. in 1997.PepsiCo passes

the $3 billion mark in sales. PepsiCo stock splits three-for-one.

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  1978

Taco Bell is acquired. Taco Bell was established in the mid 1960s by

Glen Bell. It is spun off along with Pizza Hut and KFC businesses as

Tricon Global Restaurants, Inc. in 1997. Later becomes YUM.

1979

Opening of PepsiCo Research and Technical Center in Valhalla, N.Y.

 PepsiCo reaches $5 billion in sales. Pepsi introduces twelve-pack

cans.

1980

PepsiCo Food Service International (PFSI) is formed to focus on

overseas development of restaurants. Pepsi is #1 in sales in take-

home market.

  1981

PepsiCo passes $7 billion in sales.” Pepsi’s got your taste for life!" is

the new campaign. PepsiCo launches PepsiCo Food Systems (PFS),

its restaurant supply company. PFS is sold to AmeriSource in

1997."Give me Dew" succeeds the slogan "Reach for the Sun, Reach

for a Mountain Dew."

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1982

Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free

colas, are introduced. Inauguration of the first Pepsi-Cola operation in

China.  

1983

The Bottler Hall of Fame is established to recognize the achievement

and dedication of international bottlers.” Dew It to It," theme is

incorporated to brand Mountain Dew.  

1984

PepsiCo isrestructured to focus on its three core businesses: soft

drinks, snack foods and restaurants. Transportation and sporting goods

senses are sold. Wayne Calloway becomes president of PepsiCo.

Herman W. Lay Award of Excellence established at Frito-Lay to

recognize world-class selling excellence

    1985

PepsiCo is now the largest company in the beverage industry. The

company has revenues of more than $7.5 billion, more than 137,000

employees. Pepsi's successful "Entertainment Marketing" strategy is

extended, with singers Lionel Richie and Tina Turner and actor Michael

J. Fox, among others. Pepsi distributes products in China. 

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1986

Wayne Calloway becomes chairman of the Board of Directors and

chief executive officer in May when Donald M. Kendall retires. Pepsi-

Cola sponsors the first Western-produced consumer commercial in the

Soviet Union, appearing during the Goodwill Games. PepsiCo Board of

Directors visits the People's Republic of China to mark the opening of

Pepsi's second bottling plant in China.

  1987

"Mustang," a Diet Pepsi commercial, becomes the first ad ever to

appear in a home video cassette. The cassette, "Top Gun," becomes

the largest-selling video ever. Pepsi sponsors tours of major music

stars, including Miami Sound Machine, David Bowie and Tina Turner.

  1988

Pepsi-Cola International enters a landmark joint venture agreement in

India. Worldwide retails sales of Doritos brand tortilla chips hit $1

billion. It is the world's largest selling snack chips brand.  PepsiCo

introduces Share Power Stock Option program for all employees,

becoming the first large corporation to award stock options too virtually

all full-time employees.

1989

PepsiCo acquires Walkers Crisps and Smith Crisps, two of the United

Kingdom's leading snack food companies. PepsiCo enters top 25 of

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Fortune 500 ranking with sales of $15.4 billion, it is number 23. The

Company has more than 300,000 employees.

1990

PepsiCo stock splits three-for-one. PepsiCo acquires a controlling

interest in Gamesa, Mexico's largest cookie company.  PepsiCo profits

exceed $1 billion for the first time.

  1991

PepsiCo acquires an equity interest in Wedel SA, the leading

manufacturer of chocolate and confectionery in Poland Snacks now

include operations in 23 countries. PepsiCo purchases an equity

position in Carts of Colorado, Inc., the leading manufacturer and

marketer of mobile merchandising equipment. It is sold in 1995.

1992

PepsiCo purchases an equity interest in California Pizza Kitchen. It is

sold in 1997. Pepsi-Cola introduces new "Got to Have It" advertising

theme and launches the "Got to Have It" card. Pepsi introduces new

slogan "Be Young - Have Fun - Drink Pepsi." Pepsi-Cola begins

distribution of Lipton's line of ready-to-drink teas nationwide.

1993

Frito-Lay launches new Doritos brand Tortilla Thins. Within five months

of launch, Tortilla Thins breaks into the ranks of the 10 largest-selling

snack chips in the U.S. Pepsi-Cola International introduces Pepsi Max,

a soft drink with unique blend of sweeteners that delivers maximum

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cola taste in a no-sugar product. Frito-Lay nationally launches Wavy

Lay's Original and Au Gratin flavors. Pepsi-Cola introduces Aquafina

bottled water into test market.

  1994

Pepsi-Cola is first major soft drink maker to begin producing and

distributing its product in Vietnam. PepsiCo sales reach $30.4 billion.

There are 470,000 employees worldwide, making PepsiCo the third

largest employer.

1995

Pepsi-Cola introduces "Nothing else is a Pepsi" theme line. Pepsi-Cola

is top ad scorer in Super Bowl. PepsiCo will introduce Lay's brand

potato chips in 20 markets throughout the world. PepsiCo is on-line at

http://www.pepsico.com

1996

Pepsi-Cola launches Pepsi World at http://www.pepsi.com 

"Pepsi Stuff" unveiled. Consumers save points for merchandise.

PepsiCo announces plans to spin off its restaurant businesses as an

independent publicly-traded company sell its food distribution company

and focus on its core beverage and snack food businesses. The spin-

off is completed October 6, 1997. Shareholders receive one share in

the new restaurant company, Trion Global Restaurants, Inc., for every

10 shares they hold in PepsiCo, Inc.PepsiCo is now a $20 billion

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company with approximately 140,000 employees worldwide.

  1997

Pepsi-Cola introduces new advertising campaign with the theme

"Generation Next." Pepsi-Cola North American bottling operations

become a separate unit called The Pepsi-Cola Bottling Co. Pepsi-Cola

celebrates 100th Anniversary with first worldwide bottler’s conference,

held in Hawaii. The event is held during the same time as first bottler's

conference.

  1998

Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle"

that makes it easier to grip and pour.” PepsiCo products contribute

more than any other packaged goods company to the sales growth in

U.S. supermarkets, mass merchandisers and chain drug

stores. Tropicana Products, Inc. acquires Alimentos Del Valle S.A., one

of Spain's leading chilled juice and soup companies.

1999

Pepsi launches "The Joy of Cola" advertising campaign. In March, The

Pepsi Bottling Group, the world's largest Pepsi bottler, begins trading

on the New York Stock Exchange. It is listed under the symbol PBG.

The $2.3 billion public offering is among the biggest initial public

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offerings in stock market history.

  2000

Pepsi-Cola revives its "Pepsi Challenge" advertising campaign.

Challenge includes Pepsi One and Diet Coke as well as regular cola.

Pepsi-Cola teams up with Yahoo Inc., the biggest web navigation

company, in a multimedia marketing campaign aimed at teens and

young adults. PepsiCo launches Diversity@work

http://www.pepsico.com/diversity website.

2001

Pepsi-Cola Company launches Dole single-serve juices in vending

machines, coolers and other retail outlets throughout

 the United States. Pepsi-cola”s flagship brand will have new tagline,

“The Joy of pepsi”. Pepsico introduce new corporate logo. Diet Sierra

Mist is introduce.

2002

Frito-Lay introduces Go Snacks, canisters that truly go

anywhere. Tropicana Pure Premium and Quaker Oatmeal launch the

Heart and Soul Mates Support Network featuring nutrition tips,

motivational messages and coaching advice, to help consumers turn

healthy habits into life-long changes.

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  2003

Pepsi-Cola launches Sierra Mist nationally. PepsiCo launches "Get

Active/Stay Active'' program. Pepsi Vanilla is launched in the United

States. Pepsi unveils a new tagline: "Pepsi. It's the Cola." It is the

brand's first major campaign shift since 1999 and highlights how Pepsi

goes with everything from food to fun.

  2004

Wall Street Journal names Indra Nooyi one of 50 Women to Watch

(In Line to Lead) Margo Posey, president of the DFW MBDC presented

Bob Gonzalez with President’s Award for meritorious service to the

council over the years. PepsiCo is mentioned among 26 companies

that earned Governance Metrics International’s (GMI) highest

governance rating.

National Minority Supplier Development Council (NMSDC)

names PepsiCo one of the “Corporations of the Year.” Minority

Business News names PepsiCo Chairman and CEO Steve

Reinemund “Executive of the Year.” Pepsi-Cola to launch Pepsi Edge,

the first full-flavored cola with 50% less sugar, carbohydrates and

calories than regular cola. PepsiCo publishes first Corporate

Citizenship report in its 2003 Annual Report.

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2005

For the year, reported net revenue up 8% and, excluding the impact of

the extra reporting week in 2005, net revenue increased more than 9%.

The company recorded a pretax charge $83 million in the fourth

quarter of 2005 related to cost reduction action, principally headcount

reduction.

Corporate unalloted expenses declined by $39 million in fourth

quarter, driven by absence in the current year of a $12million charge

related to the 2005 restructuring action, and net favorable impact of

certain other corporate items.

The company reported a net tax benefits of $144 million in the

fourth quarter,which included non-cash benefits of approximately $600

million , substantially all of which related to internal revenue service

examination of companys consolidated income tax returns for the year

1998 through 2002.

2006

Excluding all these items for 2006, the company earning were $3.00

per share in 2006 , an increase of 14%.

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PepsiCo announced that it has agreed to acquire comercio

de Doces Lucky Ltda.,a Brazilion snack company. Lucky makes

and sales a variety of snack product in Brazil, including the popular

brands Toricida and Fofura, which together account for the bulk of the

company revenues.

The company employs approximately 168,000 people worldwide,

and its products are sold in approximately 200 countries. Its principal

businesses include : Frito-Lay snacks, Pepsi-Cola beverages,

Gatorade sports drinks, Tropicana juices and Quaker foods. The

PepsiCo portfolio includes 17 brands that generate $1billion or more

each in annual retail sales. Leverages complementary strengths of

unilevers Lipton brand and tea know-how with Pepsi bottling and

distribution network.

PURCHASE, N.Y.;Sep. 14/PRNewswire-FirstCall/- PepsiCo and

unilever announced they have agreed to expand their international

partnership for the marketing and distribution of ready-to –drink tea

products unde the Lipton brand, the worlds best selling tea brand.

The new agreement adds 11 countries to the partnerships existing

Lipton ready-to-drink tea business. The business in these countries

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eight in Europe (Germany , Italy, France , Netherlands, Switzerland,

Austria, Belgium , and Portugal ) as well as Korea, Taiwan and South

Africa- had combined systems sales to the trade of around Euro 300m

in 2006. The new agreement effectively completes the partnership and

creates the leading global ready-to –drink tea business.

2007

TO Support the Declaration launched today at the United Nations

calling for the achievement of the Millennium Development Goals

(MDGs) by 2015 . INDRA NOOYI, Chairman and CEO of PepsiCo,

supported the Declaration, which was announced by UK Prime

Minister Gordon Brown, and urged the private sector to join with

governments, civil society and faith groups to work together toward

meeting the MDGs.

PepsiCo , Inc. has been named a global sustainability leader as it

was added to the Dow Jones Sustainability World Index (DJSI World)

for the first time this year, as welll as retaining its place on the Dow

Jones Sustainability North America Index (DJSI North America).

34

The U.S. Enviromental Protection Agency (EPA) has named

PepsiCo (NYSE: PEP) as a 2007 ENERGY STAR Partner of the year

for outstanding energy management and reductions in greenhouse gas

emissions , and the agency honored the company yesterday at an

awards ceremony in Washington, D.C.

2008-

PepsiCo Foundation announces two major new grants

to WaterPartners and Safe Water Network programs to

provide access to safe water and sanitation in developing

countries.

PepsiCo Foodservice and Naked Juice Expand Starbucks Presence .

Gatorade Sports Science Institute Gathers World's Leading Researchers on Protein Nutrition

PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award

35

OBJECTIVE OF STUDY

36

OBJECTIVE OF STUDY

The purpose of research is to discover answers to questions through

the application of the sciencetific procedures the main aim is to

find out the truth which is hidden and which is not been discovered

yet .

Our main objective is to find out the solution of those problems which

are the main barriers in the promotion of Pepsi in rural market.

Our others sub objectives are:

To find out the sources of promotion for rural market.

To find out the activated villages and their activation year.

To locate the potential rural market for Pepsi.

To identify new sources for sales promotion

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The RDP and mapping program is designed for the promotion of

soft drinks in rural areas and overcome the main barriers for soft

drinks market in rural ,the work which is being done for RDP is

described as fallows .

To find out the activated and non activated areas ; initially we see

that how many areas are activated and how many are non

activated . Here activated areas are those areas and villages where

soft drinks are being sold in the same way those villages are under

non activated areas where soft drink is not being sold , for activated

village there must be at least one or more outlets . along with this

year of activation is also noted interaction with the distributors and

sub distributor ; distributor , sub distributor and retailer can tell the

real problem faced in the market because they are in the in the direct

contact of consumer and know their liking and disliking in a better

way, Problems and their solution in rural market ; ultimately we have

to increase the sale of soft drinks in rural areas for this it is

mandatory to remove the problems like transportation consumer

awareness .these problems could be find out by doing survey of that

particular area .

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ORGANIZATION STRUCTURE

EXECUTIVE DIRECTOR

V.P. (Operation) (U.P.Unit)

Sales Manager M/s Manager CFO Plant Personal Manager Manager

Asst. Sales M/s Executive

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Sales Executive Asst. personal Manager

Finance A/C Plant SS Sales A/Cs

Shipping Quality Production

ORGANISATION HIERARCHY

SALES DEPARTMENT

UNIT HEAD

TDM TDM TDM TDM

ADC ADC ADC ADC

CE CE CE CE

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CE CE CE CE

CE CE CE CE RSP RSP RSP RSP

TDM (Territory Development Manager)

ADC (Accounts Development Coordinator)

CE (Customer Executive)

RSP (Rural Sales Promoter)

No. of CE’s Depends upon the size structure of a territo

SUPPLY CHAIN OF PEPSI IN RURAL AREAS

Plant

Warehouse

Distributors

41

Direct

Routes

S.D. S.D. S.D. S.D. S.D.

Retailers Retailers

Consumers Consumers

42

Pepsi’s entry in INDIA

Pepsi cola entered in India in April 1989 by setting operation in

beverages ‘snacks and agribusiness. At this time parley had 70% of

the market share of the total soft market.

Initially it faced some trouble in entering the market due

to strong resistance from most of the domestic soft drink industry and

advocates of the Swadeshi. The Indian economy was not liberalized

and proved to be another barrier. Pepsi removed these barriers by.

4. Promising the governments to focus considerable selling

efforts in the rural area to help economic developments.

5. Promising to help boost the exports of agricultural product.

6. Offering to transfer the food processing, packing and water

treatment technology to India.

Success Story in INDIA

Started as an exclusively franchise operating and a non COBO

company it gradually expanded its wings. It has now five COBO, Pepsi

is a broad based food and beverage company, delivering more than

60% of its sales and operating profits from its snacks foods and

resultant business. Established with a turnover of $20 billion in 1989

Pepsi co has achieved a continuing record of growth.

43

This record is based on high standard of performance, distinctive

competitive strategies superbly executed and the personal and

professional integrity of its people business practice and products.

In 1997 Pepsi co spun of its three principal restaurants

business-pizza-hut, KFC and TACO bell into and independent publicly

held company called TRICON Global Restaurants Inc. Pepsi Co. Inc.

world headquarter is located in purchase. N.Y., approximately 45

minute from New York City.

Pepsi’s Business

Pepsi has its operation in 3 fields-

1. Non alcoholic beverages

2. Snack foods

3. Fruit juices

PepsiCo’s beverage division includes

Pepsi Cola North America

Pepsi Cola International

PepsiCo’s operations were established in 1988 as franchisee based

set-up under Pepsi Cola international In India Pepsi operates as:

Pepsi Foods Ltd.

Pepsi Co India Holdings

Pepsi India Marketing Company

44

Pepsi Cola is a world class company in low margin high volume

business, which means sales of high volume of the product in order

to be profitable and compete in the global market. Pepsi Co deals in

carbonated soft drink market CSDs fall in two categories-cola and

flavor. Colas concentrate on Pepsi where as flavors deal with

orange and lemon and other flavors.

In order to successfully manage these Pepsi operate through:

COMPANY OWNED BOTTLING OPERATIONS (COBO)

FRANCHISE OWNED BOTTLING OPERATIONS (FOBO)

JOINT VENTURE OPERATION (JV)

In COBO Pepsi and own the business i.e. makes sells and delivers the

product. This allows for consistent process and ensures quality of our

products. In JV Pepsi and at least one party share the ownership in a

local bottling operation. This helps Pepsi in maintaining strong trade

mark on the other party’s recourses and expertise. Concentrate is the

critical ingredient in the production of Pepsi product and is

manufactured in 15 plants around the world including India. This

concentrate is mixed with water to make Pepsi product.

PCI WORK FLOW CONCENTRATE ON 3 ACTIVITIES

Selling Pepsi cola

Making Pepsi cola

45

Delivering Pepsi cola, Pepsi’s three core brands are Pepsi Miranda and 7-Ups .

Soft Drink – A Brief History

From 1976 till 1990 all the soft drink in India were indigenous i.e. they

are Indian brands. Since 1976 the year of exit of coke from the country

to the year 1990 was the period when the soft drinks market was

dominated by Parle were Thums-up, Limca, Gold spot, Citra and

Maaza. Other soft drinks were campa cola Campa-Orange, Lemon Mc

dowells, Thrill Sprint, Crust and Mc Dowell’s soda.

Modern food industries (Govt of India under-taking) have its

product “77”. At the same time various regional soft drink brand played

an independent role in their respective territory e.g. Duke, etc.

But from June 3, 1990 the launch of Pepsi in India, the

whole scenario of soft drink industry has changed. There has been a

re-entry of Coca-cola in October 1993. Being multinational and broadly

recognized all over the world both the company has created a soft

drink war India either by acquisition (duke by Pepsi and Thums-up

Limca Gold Spot Citra, Maaza etc. by Coca-cola) or by introduction of

their international brands.

Ever since these two giants (Pepsi and coke) have

clashed headlong and all other companies have been thrown through

46

the sidelines either as every insignificant player or as marginal regional

player. India’s per

capita consumption soft drink was serving in 1993 which has risen to

5.5% serving in 1995-1996 soft drink industry has are recorded growth

food 20% to 25% as compared to 5% to 6% growth in 1994.

With the anticipated direct involvement of coca cola

ithe immediate future all aspects of distribution, marketing

administration seem to have acquired a very

sophisticated and highly scientific and today the companies are

looking at long term contribution by way of investment i.e. by

providing the visicooler’s EBC making new outlets and introducing

new flavors and packs. This creates more consumer loyalty by

improving quality in their service, which will soon transfer into

market strength high share and enahance volume and thus building

company imagE

47

GLOBAL STRATEGIES ADOPTED BY WHICH PEPSI

BECOME NO.1 DRINK TODAY

Pepsi policy of listening closely to its salesman.

Pepsi reacts immediately to suggestions.

PepsiCo is providing financial support to the week bottles in the

form of interest free loans to upgrade their operation.

Pepsi selling marketing effort has become cola centric.

Apart from the capital cost of the plant and equipment, the

bottler has to invest in bottles, carat, trucks and the cooling

structure ( Visi cooler, icebox) at the retail point.

To plan the proper utilization of manpower.

To identify the activities where we can save time.

Emphasis should be given on quality value and satisfaction.

Customer retention is essential.

More emphasis on direct and on line marketing

Advertisement and Add Concept

Advertisements are cost effective means to communicate messages

and ideas to build brand preferences and awareness and it is one of

the most important tools which a company uses to direct persuasive

48

communication to directive buyers in public or to educated people to

avoid hard drink and so on.

The basic objective of advertising is sales promotion sales promotion

expenditure have been increasing as a percent of budget expenditure

annually and the growth is likely to continue in future. Our celebrities

signed by the PepsiCo are as follows:

For PepsiCo.

Cricketers:-

Sachin Tendulkar

Rahul Dravid

Mohd. Kaif.

Yuvraj singh

Harbhajan singh.

Sourav Ganguly.

Zaheer Khan

Ajit Agarkar

Cine Stars

Kareena Kapoor

Shahrukh

Kajol

Adnan Sami

Fardeen Khan

49

Amitabh Bachhan

Govinda

Rani Mukherjee.

Tennis Stars :-

Leander Paes

Mahesh Bhupati

Football Players

Cyrus Broacha

Bhaichung Bhutia

50

LOCATIONS OF BOTTLING PLANTS OF PEPSI IN INDIA

51

PRODUCT OFFERED

52

Pepsi Cola Brands

Pepsi-Cola

Caffeine Free Pepsi

Diet Pepsi

Caffeine Free Diet Pepsi

Pepsi Twist (regular & diet)

Wild Cherry Pepsi

Pepsi Blue

Pepsi ONE

Pepsi Vanilla

Diet Mountain Dew

Mountain Dew Code Red

Diet Mountain Dew Code Red

Mountain Dew LiveWire

Mountain Dew Blueshock

Mountain Dew AMP energy drink

Mug

Sierra Mist (Regular & Diet)

Slice

Lipton Brisk (Partnership)

Lipton Iced Tea(Partnership)

Dole juices and juice drinks (License)

53

FruitWorks juice drinks

Aquafina purified drinking water

Frappuccino ready-to-drink coffee (Partnership)

Starbucks DoubleShot (Partnership)

SoBe juice drinks, dairy, and teas

SoBe energy drinks (No Fear and Adrenaline Rush)

Outside North America

Mirinda

7UP (International)

Pepsi Limón

Kas

Teem

Pepsi Max

Pepsi Light

Manzanita Sol

Paso de los Toros

Fruko

Evervess

Yedigun

Shani

Fiesta

D&G (Licens l Fruit

54

SWOT ANALYSIS

Strength-

Good company Image

Well – trained and experienced workers and executives are

available

Strong distribution network

Brand ‘Pepsi’ alone cover the big market.

Adopted two types of distribution channels (Direct Route and

indirect Route)

Weakness-

Less personal contact with Retailers.

After Sales service is not so good.

No proper visit by officers to outlets.

The products are not getting at time during season.

Opportunity-

High growth rate for soft drink market

Rural areas great population of Youths in U.P.

Pepsi has good market share in rural area of India. Therefore

there is a need of maintaining this share in future.

55

Threats-

High growth of competitor’s products coca cola brands.

Better facilities provided by the competitor to their distributors

lead to switch over of Pepsi distributors towards competitors.

56

RESEARCH

METHODOLOGY

57

RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One

can also define research as a scientific and systematic search for

pertinent information on specific topic. In fact research is an art of

scientific topic. Some people consider research as a movement, a

movement from the known to unknown. Research is an academic

activity and as such the term should be used in a technical sense.

research comprises defining and redefining problems, formulating

hypothesis or suggested solutions ; collecting ,organizing and

evaluating data making deduction and reaching conclusion ; and at

last care fully testing the conclusion to determine whether they fit

the formulating hypothesis . social science define the research as the

manipulation of things , concepts or symbol s for purpose of

generalization to extend ,correct or verify the knowledge aids in

construction of theory or in the practice of an art .research is thus an

original contribution to t existing stock of know ledge making for its

advancement . The systematic approach concerning generalization

and the formulation of the theory is also research.

Defining the Problem:

58

Quite often we all here that problem half solved. This statement

signifies the need research problem properly is a perquisite for any

study and is a step of highest important. In fact formulation of problem

is mire essential than its solution. In rural sales promotion (RSP) our

ma in problem is how to increase the sale of Pepsi in rural areas and

strengths the roots of PepsiCo in soft drink industry. A part from this we

have it cores the rural area in a peoples way In terms of approach.

Objective of research:

Our main objective is to find out solution of the problems, which are the

main barriers in the promotion of Pepsi in rural market .

.Our Sub-Objective are:

1. To find out the sources of promotion for rural market.

2. To find out the activated villages and their activation year.

3. To locate the potential rural market for Pepsi.

Research design

A research design is the arrangement of conditions for collection and

analysis of date in a manner that aims to combine relevance to

research purpose with economy in procedure. Here we have used

descriptive research design. Since the aim is to obtain complete and

accurate information in the said studies.

59

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 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 entire set of various segments in the population comprises

all the retail store and outlets each retail store in the sampling frame

constitute the sampling unit in brief we can say overall sampling is

based on 340 outlets.

Sampling design

A sample design is a definite plan for obtaining a sample from a given

population. If it refers to the technique or the procedure the researcher

would adopt in selecting items for the sample. Sample design may as

well lay down the no of items to be included in the sample. The

60

researcher must prepar the sample design which should be reliable for

research study.

A part from all that mapping is also being done which covered

the entire area of operation. Mapping is nothing but the detailed

information about activated and non activated village along with the

activation year of correspondening village across area of operation. We

also collected the detailed information about Distributor and sub

distributor’s coverage area. In mapping the detail taken was

Name of outlet

Village name

Name of panchayat

Name of block

Name of tehsil

Name of district

Activated /Non Activated

Activation year

SD name and location

Name of Distributor and location.

Universe

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The universe is finite universe where number of items is finite in the

given problem the universe is finite and whole rural area of Lucknow

districts.

Sampling unit

Decision is taken after concerning the sampling unit, sampling unit may

be a geographical one such as state district village etc or a

construction unit such as house flat or it may be a social unit a club or

school. Here selected sampling unit for study is outlet of soft drink.

Source list

It contains all the items of universe in case of finite universe it is also

known as sampling frame.

Size of sample

It refers to the no of items selected from the universe to constitute a

sample. The size of sample is 340 outlets of 4 tehsils of Lucknow

districts.

Area of operation No. of Outlets

Itaunja 70

Kursi road 90

Chinhat 98

Malihabad 82

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total 340

Collections of primary data

The task of data collection begins after a research problem has been

defined and research plan chalked out. The primary data are those

which are collected a fresh and for the first time and thus happen to be

original in character.

We collect the primary data during the course of doing

experiments. In given problem the descriptive research is used so we

can obtain primary data either through observation or through direct

communication with respondent or through personal interviews.

For collecting primary data we used observation method,

interview method and interview through questionnaire.

Fieldwork

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

individual significance and supplemented each other.

The five phases into which the project was divided were :

1. Route Riding

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2. Retail Tracking

3. Each Distributor survey

4. Each SD survey

5. Analysis of finding and observations

64

PRESENTATION OF

DATA

PRESENTATION OF DATA

As we go along in the market we did our research in four steps:

1. Route Riding

2. Retail Mapping for Rural area Lucknow district

65

3. Each Distributor survey

4. Each SD survey

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:

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

form.

2. To gain an in depth knowledge of the merchandising and

processing activities of the Route Agents and understand

the Beverage market in rural areas.

66

To undertake the comparative study of the various brands

available and flavor packs of all existing beverages or soft

drinks

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 days in which we had covered different routes

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 (R.A.’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

67

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

incentives.

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.

68

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 five to six 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 summer trainees were required to study and analyze the

activities of the RA’s and be familiar with the market. We had been

provided Mapping Sheets by the ADC and schedule by own in which

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

particular route and full detail about village location.

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

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.

69

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

Full detail of promotion means in rural areas.

The information so collected was required to be filled in

the Mapping Sheet (specimen with the questionnaire) and reported to

the ADC along with other information in order of their seriousness.

Retail Mapping for Rural area of Lucknow

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 rural areas of

Lucknow . The new routes, exploring new markets required the

70

decision to be supported with facts and figures which had to be

provided by the summer trainees on the basis of the survey conducted

in the market and processed data thereof.

The retail mapping had to be conducted on the basis of the

Mapping Sheet, which had been developed by the Accounts

Development Coordinator (ADC) and Customer Executives (CE) of the

Lucknow which incorporated the retail outlets, their full address, etc

and served as a vital database for all market since then for PEPSI in

Lucknow and had to be incorporated in the project in accordance to

the companies policies.

Objectives of Retail Mapping:

Assessment of retailer’s performance.

Assessment of the level of promotional measures required for

increasing market 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 rural areas of Lcknow into 15

broad categories of SDs and 4 Distributors On Route, Non

Existence, Non Potential, Reachable and Non Reachable

under the head, Potential Retail Outlets.

71

The Mapping Sheet comprised of a total list of 340 outlets. The

duration for the completion of the mapping took duration of eight

weeks. 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 Accounts

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 Program and Weak Area Program.

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 rural market of Lucknow approximately 75% of the

72

market can be said to be strong areas and these areas include the

well-developed markets as Bus stops, Crossings, Hats, tae stalls,

hotels, etc. For these Strong areas, RDP 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

73

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 :

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.

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

74

also the area of operation of project to motivate these Non

Potential outlets to undertake the merchandising of PEPSI.

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

PEPS 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:

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 reach ability decision

had to be taken in context to the accessibility of the vans at these

outlets.

NON REACHABLE POTENTIAL OUTLETS :

75

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

Each distributor survey

The personal interaction with the distributor to understand the problems

faced by him in the promotion of Pepsi in rural area and in activation of

new villages problems faced in marketing of Pepsi and there interest in

rural areas and should be done by company to promote the Pepsi in

rural areas there suggestions.

Each SD survey

The personal interaction with SDs was done to understand the

problems and specially work in rural areas. What problems they face

from distributor side RSP side cooperation of company and other

problems there suggestions for the development of new areas and

knowing the routes.

76

PRESENTATION BY GRAPHS

1:- Do you sell soft drinks?

No. of Respondents. 340

77

Yes 95%No 5%

INTERPRETATION

1) Most of the outlets sell the cold drinks like PCOs , pan

Bhandars and sweets shops in summers season but 5% outlets

do not sell any soft drinks. (graph-1)

2:- Which Brand of soft drink do you sell ?

No. of Respondents. 340

78

Pepsi 8%Coke 7%Others 0Mixed 85%

INTERPRETATION

2) The percentage of only Pepsi , Coke and mixed is 8%,7and,

85% respectively. It shows that maximum no of outlets have

both the brands for the customer choice and availability o

brands.(graph-2)

3:- What is the main reason to store these brands?

Total Respondents 340

79

Supply 18% Profit Margin 16% Customer Demand 45% Schemes & Offers 21%

INTERPRETATION

3) Storage of different brands is mainly based on demand 45%,

21% on schemes ,18% on supply and rest on profit margin.

(graph -3)

4. How do you asses the product

quality of Pepsi?

Total Respondents 340

Very Good 84%

80

Good 12%Average 4%Below Average 0

INTERPRETATION

4) According to quality 84% of the shopkeepers responded that

the quality of Pepsi products is very good , 12% good and 4%

average and bellow average 0 so it is clear that quality is up to

the mark.

5:- How do you asses the customer demand for

Pepsi products?

81

Total Respondents 340

Very Good 84%Good 12%Average 4%Below Average 0

INTERPRETATION

5) The customer demand of Pepsi products is very high 84%

people prefer the Pepsi products and demand for it .

6:- What do you think about the profit margin of

Pepsi products?

82

Total Respondents 340

High 1%Medium 35%Low 64%

INTERPRETATION

6) The profit margin of retailer’s is very low 64% retailers say that

the margin is low,35% say it is average and 1% say the margin

high.

7:- Are you satisfied with the supply pattern of Pepsi

products?

83

Total Respondents 340

Yes 33%No

67%

INTERPRETATION

7- 33% are satisfied supply pattern of pepsi and 67% are not satisfied

the supply pattern of pepsi.

8:- What do you feel about the promotional strategies of

Pepsi in rural areas?

Total Respondents 340

Very Good 84%Good 12%

Average 4%Below Average 0

84

INTERPRETATION

8- The promotional strategies of Pepsi are very good according

84% respondents because they get off season discounts. 12%say

it is good and 4% say it is average. No respondent said it is below

average.

9:-Should Pepsi be introduced in new range of

products for rural areas?

Total respondents 340

85

Yes 16%

No 84%

INTERPRETATION

9- 84% of the respondents were not in favor of launching new

range of products for rural areas but 16% did the favor.

10:- What is the best means of promotion for Pepsi in

rural areas ?

Total respondents 340 (a) T.V 25% (b) Radio 38%(c) Boards & posters 16%(d) New paper 10%

86

(e) Paintings 11%

INTERPRETATION

10- The best means of advertising in rural areas is radio due to its

coverage and availability of different bands . after radio 25% say T.V.

is helpful in advertising of Pepsi products. 16% posters and banners

11% painting and !0% news paper due to its limited approach in rural

areas

87

ANALYSIS

Analysis of graphs

88

On the basis of collected data we prepared graphs as per the results

we observed the analysis is based on that-

Most of the outlets sell the cold drinks like PCOs , pan

Bhandars and sweets shops in summers season but 5% outlets

do not sell any soft drinks. (graph-1)

The percentage of only Pepsi , Coke and mixed is 8%,7and,

85% respectively. It shows that maximum no of outlets have

both the brands for the customer choice and availability o

brands.(graph-2)

Storage of different brands is mainly based on demand 45%,

21% on schemes ,18% on supply and rest on profit margin.

(graph -3)

According to quality 84% of the shopkeepers responded that

the quality of Pepsi products is very good , 12% good and 4%

average and bellow average 0 so it is clear that quality is up to

the mark. .(graph -4)

The customer demand of Pepsi products is very high 84%

people prefer the t Pepsi products and demand for it .(graph -5)

The profit margin of retailer’s is very low 64% retailers say that

the margin is low,35% say it is average and 1% say the margin

high.(graph -6)

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67% respondents say that the supply pattern of Pepsi is poor

and rest say it is good mainly on direct routs the supply ids good

but during summer in interior areas do not get proper supply. .

(graph -7)

The promotional strategies of Pepsi are very good according

84% respondents because they get off season discounts.

12%say it is good and 4% say it is average. No respondent

said it is below average. .(graph -8)

84% of the respondents were not in favor of launching new

range of products for rural areas but 16% did the favor. .(graph

-9)

The best means of advertising in rural areas is radio due to its

coverage and availability of different bands . after radio 25%

say T.V. is helpful in advertising of Pepsi products. 16%

posters and banners 11% painting and !0% news paper due to

its limited approach in rural areas. .(graph -10)

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FINDINGS

91

Findings

In Typical soft drink market, Pepsi is distributed in around 95% of the

total rural Area.

1. Rests 5% of the rural areas are not activated.

2. Around 85% of the outlets visited sell the soft drinks of mixed

vanity.

3. Around 8% of the total outlets visited sell only the Pepsi

products.

4. 45% of the total retailers, store soft drinks products because of

cuts demand.

5. Schemes & discounts is another major reason for storage of the

any soft drink.

6. Around 84% of the retailers assess the product quality of Pepsi

very good.

7. About 76% retailers said that the cuts demand for Pepsi pcl. Is

very good.

8. Max (around 64%) of retailers said that profit margin for Pepsi

products is very low.

9. 67% of retailers are not satisfied with supply pattern of Pepsi.

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10.Major portion (51%) of retailers find promotional strategy of

Pepsi in rural areas as average.

11.84% of retailers believe that there is no need of new product for

rural areas and company should focus on its pursing brands.

12.Radio (38%) & TV (25%) are best means of promoter of product

in rural areas.

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CONCLUSION

94

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 Lucknow district with the

support of its efficient distribution network, aggressive marketing efforts

and advertisements along with attractive schemes but there still exists

potential market in rural areas of Lucknow district to be exploited and a

suitable Weak Area Program or the Strong Area Program has to be

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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.

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LIMITATIONS

LIMITATIONS

Every product has limitations it is wise to point them out instead of

glossing over them the analysis and recommendations of the report are

extremely crucial to the success of the PepsiCo India holdings (Pvt.)

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Ltd. Earnest efforts were made to extract true and genuine information

yet the findings are tied up in the following boundaries.

1. The research was conducted on small sample of respondents

which is not sufficient to predict a good result.

2. The research was conducted within the specific time duration.

3. The research was conducted in a comparatively small area,

which does not represent the overall market position with

respect to the psychology of the consumers of the soft drink.

4. Reluctance of retailers of Pepsi of import of any information of

some relevance was a major hindrance.

5. The figure given by the retailers totally depend upon word of

mouth.

6. Study for retailers survey was taken maximum of outlets.

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RECOMMENDATIONS

99

RECOMMENDATIONS

1. Company should invest money on advertising through media,

Internet and personal selling to promote the Pepsi products, to

increase Pepsi consumption in the market its already there.

2. Hoarding on outlets and publication in the prominent magazines

help in increasing its awareness among the consumer to evoke

the demand of their brand.

3. Policy of replacing of bursts &Leakages should be done timely

and the retailer should be accommodated immediately.

4. More attention and concern should be given to the highest

selling outlets of Pepsi and the chain should reach to the

consumer as well.

5. Allurement and discount schemes should be given to the highest

selling outlets of Pepsi and the chain should reach to the

consumer as well.

6. More glow sign and broad should be installed.

7. Contests sweep stakes and games should be arranged on

regular basis for the consumer involving incentives and prizes.

8. The sales executive should go to each outlet of their route once

in a week and try to cover outlet that are in a distributor network.

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9. Free trials of soft drinks should be offered to the retailers and

acquaint them about the brand’s quality and the reliability of the

Pepsi.

10.The net and free sample scheme should be the same for net

every retailers by the company.

11.Some credit facilities should be given to good sale providing

outlets.

12.The company should try to influence the wholesalers of Pepsi in

the city offering more profitable scheme and confidence building

measures. in rural areas .

13.Company should make proper schedule or particular days for

hearing the complaints of their customer and retailers.

101

BIBLIOGRAPHY

102

BIBLIOGRAPHY

Books Referred:

1.Kothari C. R.,

Research Methodology Methods and Techniques

New Delhi, Wishwa Prakashan,2003

2.Kotler Philip

Marketing Management

Patparganj,Delhi, Pearson Education,2005

Websites:

www.pepsico.com (25-07-09)

www.pepsiworld.com (25-07-09)

www.google.com (27-07-09)

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QUESTIONNAIRE

104

Questionnaire

1:- Do you sell soft drinks?

(a)Yes (b) No

2:- Which Brand Of soft drink do you sell?

(a)Pepsi (b) Coke (c) Others(d) Mixed

3:- What are the main reasons to store these brands?

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4:- How do you asses the product quality of Pepsi?

(a)V. Good (b) Good (c) Average (d) Below average

5:- How do you asses the customer demand for Pepsi products?

(a)V. Good (b) Good (c) Average (d) Below average

6:- What do you think about the profit margin of Pepsi products?

(a)High (b) Medium (c) Low

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7:- Are you satisfied with the supply pattern of Pepsi products?

(a)Yes (b) No

If No.Reason:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8:- What do you feel about the promotional strategies of Pepsi in rural areas?

(a)Very Good (b) Good (c) Average (d) Below average

9:- Should Pepsi be introduced in new range of products for rural areas-

(a)Yes (b) No

10:- What is the best means of promotion for Pepsi in rural areas?

(a) T.V (b) Radio (c) Boards & posters(d) News paper (e) Paintings

11:- Your suggestions for motivating retailers to store Pepsi products.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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