College Pepsico Final Report

Project report on PepsiCo

CHAPTER (1)

EXECUTIVE SUMMARY

I, Chetan Solanki felt privileged to be a part of L J institute of management studies,

Ahmedabad. I did my summer internship training in PepsiCo Holdings India Limited a

FMCG sector company. My project title is “Analyses of success of Retail Initiator in Baroda

city and Suggestion on Go forwards”. The project basic objective is to analyze the program

which has been introduced in march-2010 the duration of the program is of 8 month till

october-2010. Name of the program is “Full Fayeda” In this project I surveyed different

areas of the Baroda city and visit retail store and ask about the scheme who were either not

subscribed or they don’t know the terms and condition of the program.

The program is basically sales promotional program. The full fayeda program is basically

introduced for selected city and for selected number of retailer who is having capacity to

increase the sale further. In this program retailer has to follow some rule and he/she can win

gift voucher of PepsiCo. The value of the voucher is up to Rs. 400 pre month if they achieve

target and extra money if they achieve more then target. In the past this program will start

with name golf club and this year the name is been changed it became full fayeda. There are

some addition and subscription of some rules and regulation in the full fayeda. Results of

golf club help us to design a program called Full Fayeda initiative. This program encourages

you to sell more product of PepsiCo and increase awareness among the retailer about new

product Joshilo Pepsi. This program is rolled out in different areas of Ahmadabad, Baroda

and Surat so as to cover all page group, income class and different culture. Initially the

owners of the outlet are enrolled with this program and take rewards which are associated

worth this program after completion of the target criteria.

In order to conduct research for this project we choose questionnaire as data collection

device and non-probability (Judgmental) sampling. As PepsiCo has mass marketed its

product so the whole population of retailers of Baroda has been targeted for research. There

are many out lets of PepsiCo product in the Baroda City out of the 100 outlet is given for the

survey purpose questionnaire has been filled with these retailers and there is some findings

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Summer internship report - LJMBA


and suggestion for them. In this project there are some old reports and companies magazine

is been used for the reference purpose.

As we go through conclusion of this project most of the retailers are satisfied with this

program and they expect more and more program like this. During my survey most of the

retailers gives good response so this will show us that company has a good relation with

their retailers.

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CHAPTER (2)

INTRODUCTION OF PROJECT

I was assigned to study the topic “Analysis of retail initiator in Baroda city and suggestion

and go forwards” of PepsiCo India Holdings Pvt. Ltd. These activities play a grater role in

the entire marketing effort being carried out by PepsiCo India Holdings Pvt. Ltd. To

generate more sales as well as to create and maintain an image of its product thus PepsiCo

India holdings Pvt. Ltd carried out its Promotional activities as controlled and integrated

program of communication and material design to present its soft drink to the prospective

customer. Its also help in communication the need satisfying qualities of soft drink to

facilitate the sales and eventually to contribute towards the profit in long range. Soft drink

industry is one of the fastest growing industries in India It can be divided into two segment

i.e. carbonated drinks and non carbonated drinks that can further classified into Cola,

Lemon, Orange, Mango and apple.

This study titled as above aims at exploring the strategies followed by PepsiCo India to

manage its retailer in Baroda. This study will also explore what changes PepsiCo is bringing

in order to increase its visibility and market presence to tackle the ever increasing hold of

Coca Cola on the Indian beverage market.

This study aims to explore the overall functioning of PepsiCo India in the marketplace. It

also aims to know retailer perception regarding PepsiCo India. To know about these facts

this report will primarily focus on the retailer relationship management and how retailer

promote PepsiCo brand.

To know the overall functioning of PepsiCo is important in order to get an understanding of

the topic. It is also important because is will explore the sales and services of Pepsi which

are provided to the retailer which is considered to be one of the strongest part of company

selling. This project also covers a detailed observation and study of the FULL FAYEDA

campaign and the various retail initiatives.

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(2.1) FULL FAYEDA PROGRAM-2010

There are some criteria for the cooler score:

PepsiCo cooler score has been divided into three parts

(1) 50% that is 7.5 point for cooler charging

Retailer has to keep in mind that 75% PepsiCo cooler should be filled with PepsiCo

brand and other 25% of other brand or that should be empty.

(2) 30% for the purity of cooler i.e. 4.5 point.

PepsiCo cooler should be 100% pure that means the PepsiCo cooler has been filled

with PepsiCo brand and not with other brand.

(3) 20% P.O.G Stock keeping Unit 3 Points.

It is basically the visibility or alteration of the PepsiCo cooler PepsiCo provide each

and every retailer that to keep bottle in cooler that is called planograme and that

should be as per bottle size.

Criteria for the rack charges

(1) 20 points are given for the proper rack charges.

Condition for the rack charges

80% place in the rack should be filled with the PepsiCo brand and remaining

20% of other brand or it should be empty.

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Volume criteria

This criterion has the highest point and which is 50 points this can be achieved by the

retailer very easily. Over here target has been set by the C.E. of the particular retailer and

C.E. will distribute target month wise. If target is achieved then retailer will get 50 point in

those particular months.

Display bonus

To getting the benefit of the display bonus the retailer should have two things

1. At least 2 air hangers

2. Cooler top display.

Bird eye view on the FULL FAYEDA

(1) Cooler score 15 points

(2) Rack charges 20 points

(3) Volume 50 points

(4) Display bonus 15 points

Per month100 points for 8 month 800 points

Reward system

If retailer achieved merchanting and volume criteria, has been given PepsiCo voucher.

Voucher and gift should be given on the following basis.

Rewards-merchaning (cooler score + Rack score + Display)

Full score - Rs. 400 PepsiCo gift voucher per months

60% score – Rs. 200 PepsiCo gift voucher per months

Volume criteria (Target should be achieved) Rs. 50 gift voucher for 10 caret/p.m.

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CHAPTER (3)

FMCG SECTOR IN INDIA

The FMCG sector represents consumer goods required for daily or frequent use. The main

segments of this sector are personal care (oral care, hair care, soaps, cosmetics, and

toiletries), household care (fabric wash and household cleaners), branded and packaged

food, beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates,

bakery products) and tobacco.

The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth

largest sector in the economy and is responsible for 5% of the total factory employment in

India. The industry also creates employment for 3 million people in downstream activities,

much of which is disbursed in small towns and rural India. This industry has witnessed

strong growth in the past decade. This has been due to liberalization, urbanization, increase

in the disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled

by the reduction in excise duties, de-reservation from the small-scale sector and the

concerted efforts of personal care companies to attract the burgeoning affluent segment in

the middle-class through product and packaging innovations.

Unlike the perception that the FMCG sector is a producer of luxury items targeted at the

elite, in reality, the sector meets the every day needs of the masses. The lower-middle

income group accounts for over 60% of the sector's sales. Rural markets account for 56% of

the total domestic FMCG demand.

Many of the global FMCG majors have been present in the country for many decades. But in

the last ten years, many of the smaller rung Indian FMCG companies have gained in scale.

As a result, the unorganized and regional players have witnessed erosion in market share.

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(3.1) History of FMCG in India

In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant

force in the FMCG sector well supported by relatively less competition and high entry

barriers (import duty was high). These companies were, therefore, able to charge a premium

for their products. In this context, the margins were also on the higher side. With the gradual

opening up of the economy over the last decade, FMCG companies have been forced to fight

for a market share. In the process, margins have been compromised, more so in the last six

years. (FMCG sector witnessed decline in demand)

(3.2) Current Scenario

The growth potential for FMCG companies looks promising over the long-term horizon, as

the per-capita consumption of almost all products in the country is amongst the lowest in the

world. As per the Consumer Survey by KSA-Technopak, of the total consumption

expenditure, almost 40% and 8% was accounted by groceries and personal care products

respectively. Rapid urbanization, increased literacy and rising per capita income are the key

growth drivers for the sector. Around 45% of the population in India is below 20 years of

age and the proportion of the young population is expected to increase in the next five years.

Aspiration levels in this age group have been fuelled by greater media exposure, unleashing

a latent demand with more money and a new mindset. In this backdrop, industry estimates

suggest that the industry could triple in value by 2015.

In our view, testing times for the FMCG sector are over and driving rural penetration will be

the key going forward. Due to infrastructure constraints (this influences the cost-

effectiveness of the supply chain), companies were unable to grow faster. Although

companies like HLL and ITC have dedicated initiatives targeted at the rural market, these

are still at a relatively nascent stage.

The bottlenecks of the conventional distribution system are likely to be removed once

organized retailing gains in scale. Currently, organized retailing accounts for just 3% of total

retail sales and is likely to touch 10% over the next 3-5 years. In our view, organized

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retailing results in discounted prices, forced-buying by offering many choices and also opens

up new avenues for growth for the FMCG sector. Given the aggressive expansion plans of

players like Pantaloon, Trent, Shopper’s Stop and Shoprite, we are confident that the FMCG

sector has a bright future.

India offers a large and growing market of 1 billion people of which 300 million are middle

class consumers. India offers a vibrant market of youth and vigor with 54% of population

below the age of 25 years. These young people work harder, earn more, spend more and

demand more from the market, making India a dynamic and inspirational society. Domestic

demand is expected to double over the ten-year period from 1998 to 2007. The number of

households with "high income" is expected to increase by 60% in the next four years to 44

million households.

India is rated as the fifth most attractive emerging retail market. It has been ranked second in

a Global Retail Development Index of 30 developing countries drawn up by A T Kearney.

A.T. Kearney has estimated India's total retail market at $202.6 billion, is expected to grow

at a compounded 30 per cent over the next five years. The share of modern retail is likely to

grow from its current 2 per cent to 15-20 percent over the next decade, analysts feel.

The Indian FMCG sector is the fourth largest sector in the economy with a total market size

in excess of US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in

2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in

most product categories like jams, toothpaste, skin care, hair wash etc in India is low

indicating the untapped market potential. Burgeoning Indian population, particularly the

middle class and the rural segments, presents an opportunity to makers of branded products

to convert consumers to branded products.

India is one of the world’s largest producers for a number of FMCG products but its FMCG

exports are languishing at around Rs 1,000 core only. There is significant potential for

increasing exports but there are certain factors inhibiting this. Small-scale sector reservations

limit ability to invest in technology and quality up gradation to achieve economies of scale.

Moreover, lower volume of higher value added products reduce scope for export to

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developing countries. The FMCG sector has traditionally grown at a very fast rate and has

generally out performed the rest of the industry. Over the last one year, however the rate of

growth has slowed down and the sector has recorded sales growth of just five per cent in the

last four quarters.

The outlook in the short term does not appear to be very positive for the sector. Rural

demand is on the decline and the Centre for Monitoring Indian Economy (CMIE) has

already down scaled its projection for agriculture growth in the current fiscal. Poor monsoon

in some states, too, is unlikely to help matters. Moreover, the general slowdown in the

economy is also likely to have an adverse impact on disposable income and purchasing

power as a whole. The growth of imports constitutes another problem area and while so far

imports in this sector have been confined to the premium segment, FMCG companies

estimate they have already cornered a four to six per cent market share. The high burden of

local taxes is another reason attributed for the slowdown in the industry at the same time, the

long term outlook for revenue growth is positive. Give the large market and the requirement

for continuous repurchase of this product.

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CHAPTER (4)

COMPANY PROFILE

PepsiCo international

Type public (New York stock exchange)

Industry: Food, Non- alcoholic beverage

Headquarters: Purchase, New York, U.S.

Area served: Worldwide

Key people Indra Nooyi (Chairperson and CEO)

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PepsiCo (International) Products

Diet Pepsi Fritos

Mountain Dew Rold Gold

AMP Energy Ruffles

Aquafina Tostitos

Sierra Mist Slice

SoBe Cheetos

Starbucks Frappuccino Kurkure

Lipton Iced Tea Doritos

7UP Tropicana Products

Mirinda Quaker Oats Company

Izze Gatorade

Copella Naked Juice

Propel Fitness Water Lay’s

Revenue: US $ 44.3 billion

Operating income: US $ 7.3 billon

Net income: US $ 6.24 billion

Total assets: US $ 39.8 Billion (F.Y 2009)

Total equity US $ 16.8 Billion (F.Y. 2009)

Employees: 203000 (2010)

PepsiCo international Website: Pepsico.com

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http://en.wikipedia.org/wiki/Izze


GROUP OF COMPANIES

Frito-Lay North America

PepsiCo Beverages North America,

PepsiCo International

Quaker Foods North America

Tropicana.

Headquartered in Purchase, New York, with Research and Development Headquarters in

Valhalla, The Pepsi Cola Company began in 1898 by a NC Pharmacist and Industrialist

Caleb Bradham, but it only became known as PepsiCo when it merged with Frito Lay in

1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food

restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo

purchased Tropicana in 1998, and Quaker Oats in 2001. In December 2005, PepsiCo

surpassed Coca-Cola Company in market value for the first time in 112 years since both

companies began to compete.

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http://en.wikipedia.org/wiki/Coca-Cola_Company

http://en.wikipedia.org/wiki/Quaker_Oats

http://en.wikipedia.org/wiki/Tropicana

http://en.wikipedia.org/wiki/Yum!_Brands

http://en.wikipedia.org/wiki/Tricon_Global_Restaurants

http://en.wikipedia.org/wiki/Fast-food_restaurant

http://en.wikipedia.org/wiki/Fast-food_restaurant

http://en.wikipedia.org/wiki/Taco_Bell

http://en.wikipedia.org/wiki/Pizza_Hut

http://en.wikipedia.org/wiki/KFC

http://en.wikipedia.org/wiki/Frito_Lay

http://en.wikipedia.org/wiki/Caleb_Bradham

http://en.wikipedia.org/wiki/Valhalla,_New_York

http://en.wikipedia.org/wiki/Purchase,_New_York


(4.1) MISSION

The main objective of the company is to provide best quality products to its consumer.

Another objective is to provide healthy rewards to its investor, good reward to its employee

and other investor and partners who financially help the company.

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(4.2) VISION

The vision of the company is to improve in all aspects in which they operate. By improving

in social and economical environment, they want to make tomorrow better than today.

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(4.3) A BRIEF PEPSI HISTORY

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

Carolina, begins experimenting with many different soft drink

concoctions. Like many pharmacists at the turn of the century he had a

soda fountain in his drugstore, where he served his customers refreshing

drinks, that he created himself. His most popular beverage was

something he called "Brad's drink" made of carbonated water, sugar,

vanilla, rare oils, and pepsin and cola nuts.

One of Caleb's formulations, known as "Brad's drink", created in the summer of 1893, was

later renamed Pepsi Cola after the pepsin and cola nuts used in the recipe. In 1898, Caleb

Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from

Newark, New Jersey that had gone broke. The new name was trademarked on June 16th,

1903. Braham’s neighbor, an artist designed the first Pepsi logo and ninety-seven shares of

stock for Bradham's new company were issued.

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

water, sugar, vanilla, rare oils and cola nuts, is renamed

"Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its

first logo.

1905 - Pepsi-Cola's first bottling franchises are

established in Charlotte and Durham, North Carolina.

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

1906 - Pepsi gets another logo change, the third in eight

years. The modified script logo is created with the slogan,

"The Original Pure Food Drink."

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

from horse drawn carts to motor vehicles. Two hundred fifty bottlers in 24

states are under contract to make and sell Pepsi-Cola.

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http://www.speedace.info/partners.htm


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1910 - The first Pepsi-Cola bottlers' convention is held in New Bern,

North Carolina.

1920 - Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola,

it will satisfy you."

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

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

trademark.

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

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

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

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

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

27th, 1867-February 19th, 1934).

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

up national territorial boundaries for the Pepsi bottler franchise system.

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

In 1940, the Pepsi Cola Company made history when the first advertising jingle was

broadcast nationally on the radio. The jingle was "Nickel Nickel" and advertisement for

Pepsi Cola that referred to the price of Pepsi and the

quantity for that price "Nickel Nickel" became a hit

record and was recorded into fifty-five languages.

1941 - The New York Stock Exchange trades Pepsi's

stock for the first time. In support of the war effort,

Pepsi's bottle crown colors change to red, white, and

blue.

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1942 - One on many company sponsored efforts to allow soldiers to communicate with

friends or family. This record was made in New York City but often booths would be set up

with mobile recording equipment that was bought to where the soldiers were. Shell material

on solid core. 78 rpm.

1943 - Pepsi's theme line becomes "Bigger Drink, Better Taste."

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

Manhattan.

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

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

line.

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

logo is the fifth in Pepsi history.

1953 - "The Light Refreshment" campaign capitalizes on a change in the product's formula

that reduces caloric content.

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

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

President Nixon share a Pepsi.

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

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

1962 - Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated'

bottle cap logo debuts, accompanying the brand's groundbreaking "Pepsi

Generation" ad campaign.

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http://www.budweiser-beer.net/beer_guide.htm


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

named CEO of Pepsi-Cola Company. Pepsi-Cola continues to lead the soft drink industry in

packaging innovations, when the 12-ounce bottle

gives way to the 16-ounce size. Twelve-ounce Pepsi cans are first introduced to the military

to transport soft drinks all over the world.

1964 - Diet Pepsi, introduced as America's first national diet soft drink. Pepsi-Cola acquires

Mountain Dew from the Tip Corporation.

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

Pepsi-Cola merge, forming PepsiCo, Inc. Military 12-ounce cans are such a success that full-

scale commercial distribution begins. Mountain Dew launches its first campaign, "Yahoo

Mountain Dew...It'll tickle your innards."

1970 - Pepsi leads the way into metrics by introducing the industry's first two-liter bottles.

Pepsi is also the first company to respond to consumer preference with light-weight,

recyclable, plastic bottles. Vic Bonomo is named president of Pepsi-Cola. The Pepsi World

Headquarters moves from Manhattan to Purchase, NY.

1974 - First Pepsi plant opens in the U.S.S.R. Television ads introduce the

new theme line, "Hello, Sunshine, Hello Mountain Dew."

1976 - Pepsi becomes the single largest soft drink brand sold in American

supermarkets. The campaign is "Have a Pepsi Day!" and a classic

commercial, "Puppies," becomes one of America's best-loved ads. As people get back to

basics, Pepsi is there as one of the simple things in life.

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

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

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

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http://www.solarnavigator.net./sponsorship/sponsors.htm


1981 - PepsiCo and China reach agreement to manufacture soft drinks, with production

beginning next year.

1982 - Pepsi Free, a caffeine-free cola, is introduced nationwide. Pepsi Challenge activity

has penetrated 75% of the U.S. market.

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

Generation." Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced,

creating a new soft drink category, "juice added." In subsequent line of extensions, Mandarin

Orange Slice goes on to become the number one orange soft drink in the U.S. Diet Pepsi is

reformulated with NutraSweet (aspartame) brand sweetener.

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

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

forcing there-introduction of the original formulation as "Coca-Cola Classic." The cola war

takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the

space shuttle. By the end of 1985, the New Generation campaign earns more than 58 major

advertising and film-related awards. Pepsi's campaign featuring Lional Richie is the most

remembered in the country, according to consumer preference polls.

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

Beverages. Pepsi-Cola World Headquarters moves from Purchase to Somers, New York.

After a 27 year absence, Pepsi returns to Broadway with the lighting of a spectacular new

neon sign in Times Square.

1988 - Craig Weather up is appointed President/CEO of Pepsi-Cola Company.

1989 - Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead."

Chris Sinclair is named President of Pepsi-Cola International. Pepsi-Cola introduces an

exciting new flavor, Wild Cherry Pepsi.

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

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

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

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http://www.solarnavigator.net/aviation_and_space_travel/space_shuttle.htm

http://www.speedace.info/pepsi_cola.htm


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

part of the company's North American operations. Pepsi introduces the first beverage bottles

containing recycled polyethylene terephthalate (or PET) into the marketplace. The

development marks the first time recycled plastic is used in direct contact with food in

packaging.

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

"Choice of a New Generation."

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

profits surpass $1 billion. Pepsi introduces an innovative 24-can multipack that satisfies

growing consumer demand for convenient large-size soft drink packaging. "The Cube" is

easier to carry than the traditional 24-pack and it fits in the refrigerator.

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

CEO Craig Weatherup explaining the relationship between freshness and superior taste to

consumers. Pepsi Foods International and Pepsi-Cola International merge, creating the

PepsiCo Foods and Beverages Company.

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

honors in the year's national advertising championship.

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

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

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

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

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

the Generatio Next campaign. Generatio Next is about everything that is young and fresh; a

celebration of the creative spirit. It is about the kind of attitude that challenges the norm with

new ideas, at every step of the way.

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PepsiCo announces that, effective October 6th, it will spin off its restaurant division to

form Tricon Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, and it will be

the largest restaurant company in the world in units and second-largest in sales.

1998 - Pepsi celebrates its 100th anniversary. PepsiCo Chairman and CEO Roger A. Enrico

donate his salary to provide scholarships for children of PepsiCo employees. Pepsi

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

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

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

page! For more information about Pepsi, choose a search engine and search for 'Pepsi' or

visit www.pepsi.com or www.pepsico.com.

2005 - Pepsi invited to introduce new brand cola and Frito-Lay Launches Quaker Oats in India

2006 - PepsiCo India re-launches Mirinda in the Indian market and PepsiCo, National

Hockey League and National Hockey League Players Association sign multi-year deal,

giving PepsiCo exclusive rights in the beverage, sports beverage, bottled water and snack

categories. With this deal, Gatorade becomes the official sports drink of NHL

2007 - PepsiCo signs Maria Sharapova for International endorsement of Gatorade and

Tropicana

2008 - PepsiCo India Foods launches Cheetos Whoosh, the first snack in India made with

whole grains and vegetables. PepsiCo is awarded the 'New Freedom Initiative' Award by the

U.S. Department of Labor for efforts to improvement employment opportunities for people

with disabilities.

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

Mother magazine.

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http://www.pepsico.com/


(4.4) PEPSICO IN INDIA

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

government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.

This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands

was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others

claim that firstly Pepsi was banned from import in India, in 1970, for having refused to

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

market shortly afterwards. These controversies are a reminder of "India's sometimes

acrimonious relationship with huge multinational companies." Indeed, some argue that

PepsiCo and The Coca-Cola Company have "been major targets in part because they are

well-known foreign companies that draw plenty of attention."

In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in

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

multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including

lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer, a

breakdown of the immune system and cause birth defects. Tested products included Coke,

Pepsi, 7 Up, Mirinda, Fanta, Thums Up, Limca, and Sprite. CSE found that the Indian-

produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted

under European Union regulations; Coca Cola's 30 times. CSE said it had tested the same

products in the US and found no such residues. However, this was the European standard for

water, not for other drinks. No law bans the presence of pesticides in drinks in India.

27


http://en.wikipedia.org/wiki/Pesticide

http://en.wikipedia.org/wiki/Europe

http://en.wikipedia.org/wiki/European_Union

http://en.wikipedia.org/wiki/Sprite_(soft_drink)

http://en.wikipedia.org/wiki/Limca

http://en.wikipedia.org/wiki/Thums_Up

http://en.wikipedia.org/wiki/Fanta

http://en.wikipedia.org/wiki/Mirinda

http://en.wikipedia.org/wiki/7_Up

http://en.wikipedia.org/wiki/Pepsi

http://en.wikipedia.org/wiki/Coca-Cola

http://en.wikipedia.org/wiki/Birth_defect

http://en.wikipedia.org/wiki/Immune_system

http://en.wikipedia.org/wiki/Cancer

http://en.wikipedia.org/wiki/Pesticides

http://en.wikipedia.org/wiki/Chlorpyrifos

http://en.wikipedia.org/wiki/Malathion

http://en.wikipedia.org/wiki/DDT

http://en.wikipedia.org/wiki/Lindane

http://en.wikipedia.org/wiki/Toxins

http://en.wikipedia.org/wiki/New_Delhi

http://en.wikipedia.org/wiki/Non-governmental_organization

http://en.wikipedia.org/wiki/Centre_for_Science_and_Environment

http://en.wikipedia.org/wiki/The_Coca-Cola_Company

http://en.wikipedia.org/wiki/1994


http://en.wikipedia.org/w/index.php?title=Lehar_Pepsi&action=edit

http://en.wikipedia.org/w/index.php?title=Voltas_India_Limited&action=edit

http://en.wikipedia.org/w/index.php?title=Punjab_Agro_Industrial_Corporation&action=edit

http://en.wikipedia.org/wiki/Punjab_(India)



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

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

world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and a

government-appointed committee is now trying to develop the world's first pesticides

standards for soft drinks. Coke and PepsiCo opposed the move, arguing that lab tests aren't

reliable enough to detect minute traces of pesticides in complex drinks. On December 7,

2004, India's Supreme Court ruled that both PepsiCo and competitor.

The Coca-Cola Company must label all cans and bottles of the respective soft drinks with a

consumer warning after tests showed unacceptable levels of residual pesticides.[citation

needed] both companies continue to maintain that their products meet all international safety

standards without yet implementing the Supreme Court ruling.[citation needed] As of 2005,

The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in

India. PepsiCo has also been alleged[attribution needed] to practice "water piracy" due to its

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

natives of Puthussery panchayat in the Palakkad district in Kerala, India. Local residents

have been pressuring the government to close down the PepsiCo unit in the village.

In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had

high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company

maintain that their drinks are safe for consumption and have published newspaper

advertisements that say pesticide levels in their products are less than those in other foods

such as tea, fruit and dairy products. In the Indian state of Kerala, sale and production of

28


http://en.wikipedia.org/wiki/Kerala

http://en.wikipedia.org/w/index.php?title=Newspaper_advertisements&action=edit

http://en.wikipedia.org/w/index.php?title=Newspaper_advertisements&action=edit


http://en.wikipedia.org/wiki/Kerala

http://en.wikipedia.org/wiki/Palakkad

http://en.wikipedia.org/wiki/Panchayat

http://en.wikipedia.org/wiki/Ground_water

http://en.wikipedia.org/wiki/Soft-drink

http://en.wikipedia.org/wiki/As_of_2005

http://en.wikipedia.org/wiki/Wikipedia:Citation_needed

http://en.wikipedia.org/wiki/Wikipedia:Citation_needed

http://en.wikipedia.org/wiki/Supreme_Court_of_India


http://en.wikipedia.org/wiki/December_7



Pepsi-Cola, along with other soft drinks, has been banned. Five other Indian states have

announced partial bans on the drinks in schools, colleges and hospitals.

Highlights of PepsiCo in India:

World leader - Convenient Foods and Beverages

Revenues of more than $35 billion

More than 1,68,000 employees

Available in nearly 200 countries and territories

Group’s 37 bottling plants in India

16 are company owned and 21 are franchisee owned

Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats

Company in 2001

Generates direct employment for more than 4000 people in India and indirect

employment for 60,000 people set up 8 green field sites in backward regions of

different states. PepsiCo intends to expand its operations and is planning an

investment of approximately US$ 150 million in the next two-three years.

Annual exports from India are worth over U.S$60 million

PepsiCo Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay

PepsiCo entered India in 1989

29



(4.5) SALES AND MARKETING HIERARCHY OF PEPSICO INDIA

30


MUM

UM

TDM

ADC

CE

PSR DA


31



MUM – Marketing Unit Manager – He/She is in charge of specific zone (e.g.

North, South, East, and West.) and report to the corporate office.

UM – Unit Manager –He/She is in charge of the day to day operation and supervision

of all the function within the organization including operation, logistics, sales and

distribution, marketing. The Unit manager reports to the MUM.

TDM – Territory Development Manager – TDM is in charge of sales and

distribution network of particular territory within a zone Responsible for daily monthly and

annual sales within the territory decides the daily scheme for the products and incentives for

the salesperson. He is also responsible for the cost effectiveness, profit generation and profit

maximization for territory.

ADC – Area Development Coordinator – Reports to the TDM and in charge of a

center and distributor point in area he is directly responsible for any issues in the area and

supposes to ensure the smoothly functioning of the entire sales and distribution network in

the area. ADC is responsible for timely disposal of any issue faced by the retailers. He

decides to approve the boards, display and hoardings in the area.

CE – Customer Executive – He is reports to the ADC and in charge of the salesperson.

He is requiring visiting the market and accompanying every salesperson as frequently as

possible. He is the first person to get the information about the market/ area and is the first

contact if sales person or retailers faced any issue. He is responsible for assigning and

achieving daily sales target given to salespersons.

PSR – Pre-Sales Representative – They are the most important assets of the company

as they sales the product of the company, they are responsible for acquiring new the new

customer and retain the old one their work also include informing retailers about

promotional schemes. They are also responsible to push the sale of any new product launch

and make sure that retailers are following the company guideline regarding the launch and

maintenance of VISI- cooler. They reports to CE.

32



DA – Delivery Agent – These are the people who are responsible for delivering the

PepsiCo product to the retailers at their outlet with the help of delivery van. Their duty is to

supply the product on the basis of invoice issued by company.

33



(4.6) PRODUCTS OF PEPSICO INDIA

Company products are basically divided into two pars that are food and beverages.

PepsiCo Beverages

Pepsi-Youngistan meri jaan (Mother brand)

Pepsi is a hundred year old brand loved by over 200 million people worldwide. The largest

single selling soft drink brand in India is the ubiquitous 'socialiser' at every occasion.

Youngistan loves it. 200 million people worldwide love it. But what has made Pepsi the

single largest selling soft drink brand in India is actually a formula concocted a century ago

in a far away continent.1886, United States of America. Caleb Bradman, the man with a

plan, got on to formulate a blockbuster digestive drink and decided to call it Brad’s drink. It

was this doctor’s potion that was to become Pepsi Cola in 1898, and eventually, Pepsi in

1903. Pepsi has always played on the front foot and since its inception has come out with

revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the enviable

My Can.

34



7 UP - Mood KO Do Lemon Ka Lift

7UP, the refreshing clear drink with natural lemon and lime flavor was created in 1929. 7UP

was launched in India in 1990 and its international mascot Fido Dido was used for

advertising in 1992 to position the brand as a cool drink for youngsters. Fido became an

instant hit with his trendy look, laid back attitude and refreshing take on life. During the

brand’s early years in India, 7UP gained market leader status in the lemon lime category by

being one of the first to be nationally distributed as well as being marketed as a healthier

alternative to other soft drinks. After establishing itself as “The Lemon Drink ", in Jan

2009, 7UP continued to build further on the theme of mood upliftment with its new tagline

"Mood ko do Lemon ka Lift”

Mountain Dew - Darr Ke Aage Jeet Hai

The main formula of Mountain Dew was invented in Virginia, named and first marketed in

Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain Dew set the

soft drink category ablaze in 2003 with their iconic launch campaign “Cheetah Bhi Peeta

35



Hai”. It is a soft drink that exhilarated like no other because of its daring, high-energy,

active, extreme citrus taste. Challenge, a can do attitude, adventure and exhilaration is

deeply entrenched in its brand DNA and the brand has always celebrated the bold and

adventurous spirit of the youth.

Nimbooz - Ekdum Asli Indian

Nimbooz was launched in India this year on the 28th of February 2009. Latest addition to

portfolio of Pepsi Beverages. Nimbooz is a great tasting product which has capitalized on

the existing familiarity & behavior of high frequency consumption of unpackaged / Home

made nimbu pani. It has been true to its Asli Indian Identity by owning and appropriating

nimbu pani Codes such as the Matka (Earthen Pot) and Squeezer.

Slice - Pure Mango Pleasure

36



Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to

become a leading player in the category. In 2008, Slice was relaunched with a 'winning'

product formulation which made the consumers fall in love with its taste. With refreshed

pack graphics and clutter breaking advertising, Slice has driven strong appeal within the

category. Slice took INDULGENCE to a new level in 2009 with the launch of the ‘Slice

Pure Pleasure Holidays’, giving its consumers a chance to win luxuriant all-expense-paid

holidays to their dream European destinations like Paris, Vienna, Greece and Venice.

Tropicana-100%

Tropicana was founded in Bradenton, Florida, USA, in 1947. And is now enjoyed almost

everywhere in the world. Carefully nurtured for over 50 years, it has matured into one of the

most respected beverage brands. Today it is the World's no. 1 juice brand and is available in

63 countries. Since 1998, it has been owned by PepsiCo, Inc. Tropicana Premium Gold

was re-launched as Tropicana 100% in year 2008. It continues to select the best in fruit to

craft high-quality juices, create original products, pioneer innovative processes and explore

new markets for its products. It is devoted towards a healthful lifestyle by ensuring that the

products are naturally nutritious and provide the daily benefits that one needs.

37



Mirinda - Orange Dikha To Mooh Bola Mirinda

Mirinda is an international soft drink brand from Spain that was launched in India in 1991.

Now when we think Mirinda, we think orange. But this soft drink brand has many other fruit

flavours; Mirinda Lemon was launched in 1998 & other flavors like Apple & Batberry that

were launched as in & outs. Mirinda has always been about a great orange taste, which is

now synonymous with the brand.

Aquafina - The Purest part of you

38



Aquafina was first launched in USA in the year 1994 and with its unique purification system

and great taste; Aquafina soon became the best selling brand in the country. In India,

Aquafina’s journey began with the Bombay launch in 1999 and it was rolled out nationally

by the year 2000. On the strength of its brand appeal and distribution, Aquafina has become

one of India's leading brands of bottled water in a relatively short span. Aquafina goes

through a 5 step state-of-the-art purification process to give consumers pure water and

perfect taste every time. Aquafina has been built through refreshing and edgy advertising.

The ‘What a Body’ campaign has enabled the brand to drive modern, premium, and youthful

brand imagery in an otherwise undifferentiated category.

Gatorade

Gatorade is an optimal mix of water, carbohydrates and essential mineral salts that get

absorbed instantly to rehydrate, replenish and refuel like no other beverage can. Gatorade is

unlike any other Beverage or Energy Drink! Gatorade quickly puts back what body

losses in sweat. Its scientific formulation instantly helps the body restore essential minerals,

salts, water & energy lost when it is active. Gatorade thus helps go ‘Stronger for Longer’. It

contains less than ½ of the sugar that is normally found in energy drinks/ soft drinks and

even juices.

39



PepsiCo Foods

Aliva - Chatpate crackers with wheat and daal

With the launch of Aliva, FritoLay India aims to create a new segment of great tasting baked

savoury crackers. After Kurkure's enormous success, Aliva marks FritoLay India's creation

of yet another category – borrowing ingredients & textures from biscuits & flavorful

experiences from namkeens. Aliva is a product range developed in India especially for the

Indian consumer & is a significant step in the company’s journey of portfolio transformation

towards providing healthier and tasty snacking options in line with local consumer needs.

Cheetos

40



Cheetos, a global brand, launched in India in 1995 has been positioned as a brand which

inspires imagination and a sense of adventure and fun. All Cheetos products are made with

healthier oil - Rice Bran Oil. This has led to a reduction in saturated fat by 40% in Cheetos

products. In two of our biggest variants (Masala balls & Cheese Puffs) we have reduced fat

by 10% through product improvement initiatives even as we maintain their taste profiles. In

the third main variant - Tangy Loops, the product has been improved by using wholegrain in

its manufacture. The new launch under Cheetos Whoosh is a source of Vitamin A.

Kurkure - Tedha Hai Par Mera Hai

Kurkure has constantly re-invented to keep itself relevant to the Indian ethos and culture.

Not only has Kurkure provided an inimitable taste and superior quality, but it has also

strived to do more for its consumers. It has brought fame and joy to many through its 'Chai-

time-achievers' face on pack initiative. Kurkure Desi Beats - Kurkure Desi Beats is an

exciting new range of crunchy triangular snacks offering irresistible Indian tastes. This

newly launched sub-brand for the Youth personifies the inherent 'Desi (Indian)' spirit in all

of us and gives one the license to be 'Desi'. Desi Beats celebrates the contemporary Indian

youth who straddles both tradition and modernity and is confident in his Indian identity.

Kurkure, a Snack Smart product, is a new age Namkeen and contains Rice meal, Corn meal,

41



Gram Meal, Edible oil, Seasonings, Salt, Spices and Condiments and Flavors (some or all in

variants of Kurkure).

42



Lay’s - Be a Little Dillogical

Lay’s - world’s largest and favorite snack food brand, has also steadily established itself as

an indispensable part of the “snacking culture” in India since its launch in 1995. Lay’s, with

its irresistible tastes, international & Indian flavors and young imagery has established itself

as a youth brand and continues to grow in the hearts and mind of its consumer! In June 2009,

Lay's launched its new positioning platform - Lay's be a little Dillogical. The new Dillogical

concept makes a strong connect with youth caught in the divergent pressures of the desire to

succeed and the desire to stay actively engaged with those life filling moments. This friction

is like a game between the heart and the head, a struggle between what you wish to do

versus what you have to do. It is all about making things that matter to the heart, happen.

Lehar Namkeen

43



Lehar was launched in 1996; Innovated through small packs and new traditional Flavours

was built on communication, irresistible taste and modern imagery. Lehar was re-launched

in 2006 and positioned on the plank of "Taste zyaada kyonki oil taza" with a promise to

deliver good taste through the use of fresh oil in manufacturing. With tag line “Kya Karein

control nahi hota” brand promises to deliver irresistible indulging namkeens to consumers.

Lehar Namkeen- 'Taste zyada kyunki Oil taaza ' Lehar Namkeens great taste, good quality,

Indian & Fresh! Lehar Namkeens are made from rice bran oil and hence have:

o 40 % less saturated fats that regular namkeens , with the same great taste

o Zero Transfats

Quaker Oats - Say Good Morning to your Hearts

PepsiCo had acquired Quaker Oats globally in 2001. Quaker Oats was launched nationally

in India in 2006 and has seen various successes in the last few years. Quaker Oats are

Australian Oats which goes through quality control standards for raw grains and finished

oatmeal

In Australia Once received in the Indian plant, the consignment is scrutinized and

mandatorily sent through a protocol of fumigation certified by PCI. All processes thereafter

are as per internal quality control protocol of Frito Lay, which includes Checks and

measures for receipts and clearances laid down by Quaker globally Strict hygiene and

44



sanitation standards followed for the equipments, processes and facility Packing under

controlled temperature, humidity and hygiene conditions Micro-biological testing of

ingredients/products on receipt at the factory and during final clearance Complete facility of

bulk storage, transfers, packing and clearances are under surveillance for infestation as per

Frito Lay standards.

Uncle Chipps – Bole Mere lips, I love Uncle Chipps

Brand was launched in 1992; Uncle Chipps was a pioneer in branded potato chips in India .

The brand was acquired from Amrit Agro Ltd. in 2000 by Frito-Lay India. The extremely

popular brand has grown from strength to strength post acquisition with consumers feeling a

very strong connection with it. Uncle Chipps is’ warm playful, lively, companionable and

traditional-at-heart', just like the Uncle everyone in the family related to and no family

gathering is complete without!

45


Convenience

ChannelGrocery Channel

Eatery Channel


(4.7) RETAIL CHANNEL

PepsiCo has basically three type Retail channel that is Convenience channel, Grocery

channel and Eatery channel. PepsiCo is targeting this type of store in big cities of India and

PepsiCo get huge business from them.

Convenience channel includes different kiosks are which is

convenient to general public.

Grocery channel includes different grocery shops.

Eatery channel includes different hotels, restaurants etc.

46



CHAPTER (5)

LITERATURE REVIEW AND STUDY OF INDUSTRY

Literature Review:

To explore the reason behind these development this study will analyze the marketing

initiatives and policies of PepsiCo India in detail with partner relationship management.

Above mentioned objective can be achieved by carrying a proper and planned research

involving different types and methods. The data collected for laid the foundations for the

study and gave a platform for the analysis and findings which lead to the fulfillment of the

objectives.

The data collected for research is primary and secondary. Primary data is collected by

interviews and questionnaires while secondary data is collected from internet through

different case studies and report on CSD (carbonated soft drink) industry primary data is

used to know that how successful Full fayeda program and secondary is to support to make

this report.

Soft drink industry in India

The Indian soft drink market is very wide and big to control as India has all types of natural

seasons and different locations have different culture. The northern part is cool, whereas in

south the heat is out of control and people are more need of soft drink like Pepsi and coca-

cola. The market share of any soft drink varies from location to location and season to

season Domestic form in India, which one enjoyed the benefits of sheltered markets, is

increasingly facing competition from global giant in 1990s. Sheltered market has one allows

47



Indian entrepreneur to develop strong brand that have held their own against the onslaught

of the MNCs. Some domestic firms have chosen the strategy of tie up with the MNCs.

Others have tried to meet competition head on. Whatever route Indian firm takes to be with

competition from MNCs, it is imperative for them to keep track of global strategy of these

firms. Often strategies undertaken at local level.

48



CHAPTER (6)

OBJECTIVES OF STUDY

For any study it is important to know that what is their objective and why that study is to be

conducted. As my topic over here suggest that analysis of success of retail initiator in

Baroda city and suggestion on go forwards. PepsiCo introduce one scheme for the purpose

of sales promotion which named as full fayeda. In this project my object is to find out how

much full fayeda scheme is successfully run. How retailer promote PepsiCo brand, there are

certain criteria and rules and regulation for the scheme which has been followed by them or

not, how much the retailer care for this scheme. This program has been design to keep in

mind those retailers who have capacity to increase the sale, and most of the enrollment for

this program is done them only.

Problem statement:

What is satisfaction level of retailers for full fayeda program introduced by

PepsiCo in BARODA city?

There are certain objectives company wanted to know about the full fayeda program which

are as follows.

OBJECTIVES

Level of awareness of retailers about Full fayeda program

Retailers enrollment in this program

Overall service of PepsiCo and Retailers satisfaction

49



Find out retailers perception For PepsiCo and their employee.

CHAPTER (7)

RESEARCH METHODOLOGY

(7.1) Introduction

The soft drink is a non-alcoholic beverage. It is artificially flavored and contains no fruit or

pulp. India with population of more then 100 cr. is potentially one of the largest markets in

the world after china. The consumer market can be defined as the market for product and

services that are purchase by individual to satisfied their thirst and secondly for refreshment

in today’s competitive market only those product are likely to be purchased which are

capable of hitting the impulse of the consumers product appeal should be penetrated and get

embedded into the perceptual space of the consumer’s mind the concerned product should

induce to the consumers. Pepsi believes that “Jo Dikhta hay woh bikata hay” i.e. any product

which is visible is bound to be sold that is method to increase the visibility of product like

Visicooler placement, Glow signboard, Paintings crate stacking, Umbrella, Banners, Display

scheme, special scheme and Rack.

Marketing Research is a process of collecting and analyzing marketing and ultimately to

arrive at a certain conclusion. Company is a concern which is Marketing the product haring

different brand of soft drink, thus a survey method of marketing research is essentially

exploratory in nature thus I opted for “questionnaire” method for conductive survey about

the marketing of PepsiCo Through retailer in Baroda city.

50



(7.2) Data source:

The various sources of Information Broadly divided in two categories

Primary source: Source from where first hand information is gathered directly are called

primary data in this study collected is called primary data. In this study the primary data was

collected from retailer.

Secondary source: The data that collected for other purpose already exists somewhere is

called secondary data. With regard to my study the secondary sources where records of the

company magazines, websites, previous research on relevant topic and news papers.

(7.3) Research type:-

Exploratory research: Exploratory research provides insight into and comprehension of an

issue or situation. It should draw definitive conclusions only with extreme caution

Exploratory research is a type of research conducted because a problem has not been clearly

defined.

(7.4) Data collection technique:-

(1) Primary data:- Questionnaire method.

(2) Secondary data: - website, Books, company publication and previous year

projects.

(7.5) Sample Description:-

(1) Sampling technique:-

Non-probability sampling (Judgmental).

(2) Sample size:-

100 retailers of PepsiCo brand in Baroda city.

(3) Sample profile:-

Retailers of PepsiCo brand in Baroda city.

51



52



(7.6) Data collection

PepsiCo full fayeda scheme started in the month of march-2010 and it will end in Oct-2010.

Every month PepsiCo authorized auditor visits to that retailer who were participating in this

Program and examine the condition. I myself and one other of my friend were assigned in

the area of Baroda and Ahmedabad respectively. Mr. K. Binjit Kumar (MDM- Gujarat) had

given us responsibility and helps us to know the terms and conditions of PepsiCo Fullfayeda

scheme. I am getting 100 outlets for knowing the condition of the scheme. I had visited 100

outlets in the different area of Baroda city. I have visited Wagodhya, Ajwa Road, New VIP

Road, Akota, Alkapuri, Old padra Road, Gotri Road, Ellora park, Sama, Makarpura and

Majalpur, etc...To enter in retail outlet first thing I cheaked that weather the retailer displays

the Pepsi soft drinks properly or not, Do they keep the cooler clean, How many other brand

their in the cooler. Data collection was done through questioner and personal interview.

After editing, Coding and tabulating data was compiled accurate and meaning full manner.

Data collected by questioner was analyzed, interpreted with the help of chart.

53



CHAPTER (8)

DATA INTERPRETATION

Data interpretation is the most important part of the project. On the basis of survey following

data has been collected and interpret in table and graph form so that it can be understand

easily.

(Q.1) Are you aware about the full fayeda initiative of PepsiCo?

94

6

chart 1

AwareNot aware

Brief findings: In questionnaire 1st question is about awareness of the program. Out

of 100 visited store there are 94 people who know about program. Awareness of the

program is very high because order processing and delivery processing system is

excellent and so retailer can directly interact with sales man of company and can

know about scheme directly.

54


YES 94

NO 6


(Q.2) Have you filled the enrollment form for the full fayeda initiative?

94

6

chart 2

Enrollnot enroll

Brief findings: As we see in the first chart that awareness level is very high retailer who

know about the program they all have enroll in the program.

(Q.3) Are you aware about the rewards which retailer will get on the successful completion

of the program?

55


YES 94

NO 6

YES 76

NO 18

NOT ENROLL 6


76

186

chart 3

AwareNot awareNot enroll

Brief findings: Most important thing is retailer’s knowledge of getting benefit at the end of

complication. If retailer knows about what reward they will get for achieving the entire

target. They became self motivate and ultimately company sales is increase over hare there

are 76 aware about what benefit they will get, 6 retailer don’t know about program and 18

don’t know about benefit.

(Q.4) Do you think the initiative of full fayeda will help retailers to increase sales?

56


YES 85

NO 9

NOT

ENROLL

6


85

96

chart 4

YESNONot enroll

Brief findings: In this question 85 retailer say that customer demand of PepsiCo brand as

they see in the visi-cooler rest of the people that is 9 retailers have not proper visi so they

sales is not increase but as it is.

(Q.5) Do you think Full fayeda initiative has increased the overall visibility of your outlet’s

offering to the end customers?

YES 85

NO 9

NOT ENROLL 6

57



85

96

chart 5

YESNONot enroll

Brief findings: Because of this program retailer increase their outlet visibility because of

PepsiCo VISI COLLER out of those 94 retailer 85 are agree that that will increase and 6 are

not agree with this.

(Q.6) Are you satisfied with the offerings the Full fayeda initiative of PepsiCo?

Extremely satisfied 18

Satisfied 61

Neither satisfied nor

dissatisfied

13

Dissatisfied 2

Extremely dissatisfied 0

Not enroll 6

58



18

61

13

26

chart 6

E. satisfiedSatisfiedNeither nor dissatis-fiedDissatisfiedE. dissatisfiedNot enroll

Brief findings: As in the objectives of the report one of the object is of satisfaction level

with the help of this questions result we come to know that satisfaction level is high because

there are 79 retailers completely satisfy with this program and they don’t have any issue with

this program.

(Q.7) how would you rate this PepsiCo Full Fayeda initiative?

59


EXCELLENT 5

VERY GOOD 37

GOOD 39

FAIR 10

POOR 1

VERY POOR 0

NOT ENROLL 6


538

40

10

16

chart 7

ExcellentV. goodGoodFairPoorV.poorNot enroll

Brief findings: How much FULL FAYEDA program is liked by retailers, in the above chart

large slices filled with excellent, good and very good so this program create positive image

in the market about Program.

60



(Q.8) Do you thinks PepsiCo should come up with more such schemes for the benefit of

retailers?

95

1

4

chart 8

YesNoNot enroll

Brief findings: Almost 95 present of retailer want more and more program and scheme need

from PepsiCo. These will help them to increase sales of company.

(Q.9) Are you satisfied with PepsiCo’s overall services?

61


YES 93

NO 1

NOT

ENROLL

6


97

3

chart 9

YesNo

62


YES 97

NO 3


Brief findings: Out of 100 retailer there are 97 retailer say that they are satisfy with over all

service of the PepsiCo there are only three retailer who are not satisfied with over all service

with PepsiCo which is very rare.

63



CHAPTER (9)

FINDINGS

There are certain things come out on the basis of survey which can be elaborated further in

following way.

On the basis of questionnaire and personal interview 94% of the retailers

know about the full fayeda program and all of them have enrolled with this

program.

The awareness of the benefit of this program in some area are less as out of

enroll retailer (i.e. 94) there are 81% retailers who know what benefit will

they get at the end of successfully complication of this program.

Company has to provide rack (which is tool to hang PepsiCo bottle out side

store) to each and every store so that visibility of PepsiCo can be increased.

PepsiCo’s compotator provide that so their sales are increased in some store.

Almost 100% of retailers who have enroll with this program said that sale of

PepsiCo is increase because of this program.

Out of enroll retailer 91% say that due to visibility of PepsiCo cooler will

generate more sales.

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About satisfaction level of those retailers who know the benefit and said

increase in sale are 96% about this program which is comparatively good but

other side who don’t know the benefit but they have enrolled in this program,

their satisfaction level is only 50%

About Overall services of the PepsiCo is very good, almost 100% of retailers

say that they don’t get any difficulty with service of PepsiCo.

During my survey I also observed that retailers are happy with PepsiCo

services. This will show us that PepsiCo has a good relation with their

Partners.

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CHAPTER (10)

SUGGESTION

As per personal interview and with the help of the questionnaire, Retailer gives many

suggestions out of them most common can be conclude as follows.

On the basis of findings PepsiCo should come up with more schemes because this

kind of program generates more and more sales.

There are some store who didn’t follow phonogram which given by PepsiCo for

good visibility.

There are some retailer who don’t know the benefit, they even don’t read booklet

given by company for them companies employee has to help them to understand the

whole program and constantly remind them so that they know about the target they

have to achieve and ultimately company’s sales increase.

Few retailers complaining about not fulfillment of commitment regarding their

leakage and breakage. Company should make sure that retailers will get fulfill their

commitment on this issue so that they will be satisfied.

Proper feed back system should be develop by its officials and ensure a randomly

visit of outlet by them. It will help to built strong and healthy relationship between

company and retailer.

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CHAPTER (11)

CONCLUSION

The project was a great experience for me in order to study the marketing aspects in

the world. It was a great opportunity for me to express what I have studied. This

industry is a place where two major players are there in the world. This Pepsi

Company gave me lot of opportunity and scope to understand the soft drink industry

and its marketing structure and distribution channels.

Lot of valuable information regarding the company and also the retailers have been

collected from the survey, which helped me to understand the real problems faced by

the marketers to distribute and also make retailers to sell the company’s products in

the market.

The suggestions made to the company were really applicable for the growth and

benefit for the company in order to increase its market share and to become the

market leader in the soft drink industry, because a large number of competitors

craving for the same market. Thus, finally it can be said that the industry needs a lot

of channel management activities to done along with various promotional strategies

for the customers. I wish the company to achieve its objectives achieved soon.

In future any survey regarding retailer must be conclusive instead of inclusive. I have

gathered only those questions which are most important. But further detailed study of

this subject is possible on individual basis; I can individually come to know how

many super stores are fully aware about the full fayeda program 2010 out of other

superstore in which I can study. Due to lack of time constraints given to me, only

two months with training in marketing, I am able to perform inclusively. I have

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ground reality experience in marketing profile offered to me.

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CHAPTER (12)

LIMITATION OF THE STUDY

There are certain limitations of studies which are as follows

Lack of awareness and scheme knowledge to the respondent.

Unavailability of right person at retail outlet.

There some dispute already going between some retailer and company who have no

connection with this program this makes difficult to collect the required information.

Time was one of the biggest constrain as so many area of Baroda city were to be

covered in short period.

Inability of some of the retailers to understand the importance of VISI made good

sales.

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Bibliography

Web sites:

http://faircompanies.com/reputation/view/pepsico/

www.pepsico.com

http://www.pepsiindia.co.in/

http://en.wikipedia.org/wiki/PepsiCo

www.google.com.

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http://www.google.com/

http://en.wikipedia.org/wiki/PepsiCo

http://www.pepsiindia.co.in/

http://www.pepsico.com/

http://faircompanies.com/reputation/view/pepsico/


Annexure

Questionnaire which is used in the survey is as follows.

Dear Sir / Madam,

I am a student of L J Institute of Management studies, Ahmedabad pursuing MBA program. As a

part of our curriculum, I have required to conduct a research. So kindly co-operate me to fill up this

questionnaire. I am doing my Summer Marketing Research Project on “Analysis of success of

Retail Initiator in Ahmadabad city & Suggestion on go forwards.”

The information provided by you would be used for study purpose only and

will be kept confidential.

(Q.1) Are you aware about the Full Fayeda initiative of PepsiCo?

(a) Aware [ ] (b) Not Aware [ ]

(Q.2) Have you filled up the enrollment form for the Full Fayeda initiative?

(a) Yes [ ] (b) No [ ]

If Yes,

Then do you know about all criteria of that initiative?

No. Criteria of the Scheme Points

1 Cooler Score 15

2 Rack Charging 20

3 Volume 50

4 Display Bonus 15

Points (Month) 100

Points (Limit up to 8 months) 800

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(Q.3) Are you aware about the rewards which retailer will get on the successful completion of the

program?

a) Yes [ ] (b) No [ ]

If Yes,

Then do you know about the rewards involved in the initiative?

(Q.4) Do you think the initiative of Full Fayeda will help retailers to increase sales?

(a) Yes [ ] (b) No [ ]

(Q.5) Do you think Full Fayeda initiative has increased the overall visibility of your outlet’s

offerings to the end consumers?

(a) Yes [ ] (b) No [ ]

(Q.6) Are you satisfied with the offerings of the Full Fayeda initiative of PepsiCo?

(a)Extremely satisfied [ ] (b) Satisfied [ ] (c) Neither satisfied nor dissatisfied [ ]

(d)Dissatisfied [ ] (e) extremely dissatisfied [ ]

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Rewards + Merchandising criteria

(Cooler Score + Rack Score +

Display Score)

Full Score- Rs.400 PepsiCo Gift

Voucher per month

60% + Score-Rs.200 Gift Voucher

per month

Volume Criteria

(Required minimum Target)

Rs.50 Gift Voucher/10 Crat on the

basis of per month volume)


(Q.7) How would you rate this PepsiCo Full Fayeda initiative?

(a) Excellent [ ] (b) Very Good [ ] (c) Good [ ]

(d)Fair [ ] (e) Poor [ ] (f) Very Poor [ ]

Q.8) Do you think PepsiCo should come up with more such schemes for the benefit of retailers?

(a) Yes [ ] (b) No [ ]

If yes,

Then which types of Schemes you expect from PepsiCo. Please

specify___________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

______

Q.9) Are you satisfied with PepsiCo’s overall services?

(a) Yes [ ] (b) No [ ]

If No,

Please specify the reasons for the same

a)

b)

c)

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Q-10) Any suggestions to PepsiCo, for improvement.

Thank you for your valuable participation ……..!

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List of the store surveyed in the Baroda city

STORE NAMEAREA TARGET ACHIEVE

Successfully achieve

Hari om ice cream Wagodhya - -Shri Varun agency Warshi ring road 242 281 1Laukesh gen. store Ajwa road 265 295

Gitanjali store Ajwa road 200 286 2Jay kailama store Wagodhya 520 290Krishna Farshan Wagodhya 200 251 3

Royal Bekars New VIP road 235 283 4Sainath bekars Ajwa road 295 225

Shiv shakti departmental

str Tandalja 360 258Seema provision store Ajwa road 325 376

Jay bhavani store Wagodhya 230 368 5Monalisha coldrink Ajwa road 250 283 6

Prakash sweet Wagodhya 200 262 7Shree emporium Akota 305 310

Vidyarthi book and gen

store Tandalja 315 331Bajrang Farshan Ajwa road 295 296New break fast Vasana road 310 362 8

One top O.P. road 370 381Meadows store Tadlja 270 309 9Akota gen. store Akota 370 404

Jay jalaram ice cream Alkapuri 370 375Shriji super store O.P. road 305 321 10

Super pan Akota 305 317New Amar pan O.P. road 305 338 11Rupti sweets Gotri road 315 273

Vijay hunman store Gotri road 0 0

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Jay jagdish store Gotri road 305 212Shree Krishan store Gotri road 390 260

Maheswari ice cream Gotri road 315 354 12Nilkanth traders Ellora park 305 333

Shri Radhika store Ellora park 270 276 13Bansal corner Ellora park 370 411

Radhe emporium Gotri road 200 236 14Shakti prov. Store Ellora park 260 275

Thakur pan O.P. road 430 452Shri ram farshan mart O.P. road 290 330 15

Rajshree restaurant Sayajigunj 285 295Shiv shakti provision store Sama 270 350 16

Gayatri pan Sama 0 0Laxmi narayan provision Sama 240 281

Agraval super market Sama 245 319 17Jay ambe agency Gotri road 305 205Lucky soda center Pani gate 200 237 18

Nav durga Chawkhandi 200 497 19Jay ambe cold corner Khanderaw mkt 600 1086 20

Ambika storeSangam char

rasta 310 338City corner Raj Mahel road 200 376 21Shri sainath Ajwa road 295 231

Shri Gayatri milk Ajwa road 200 250 22Poonam provision store Ajwa road 400 215

Rohani Gen. store Ajwa road 200 245 23Kalapi farshan Wagodhya 220 262 24Krishna store Wagodhya 220 251 25Ravi telecom Wagodhya 265 319 26

Goverdhan prov. Store Wagodhya 230 290 27Modi general store Khodial nagar 240 237

J.K. corner Vadisiya 0 0Chistiya khaman Tandalja 380 391

Shree Gopinath gen. store Wagodhya 230 0Gurupark store Wagodhya 220 200

Bansal medicines Ajwa road 370 379

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Amar pan O.P. road 305 338 28New Raju pan Nizampura 220 258 29Siddhi Travels Nizampura 225 290 30

Porwal departmental store Nizampura 238 234Hari om pan Nizampura 231 293 31

Best Brakers stores Nizampura 245 274S.bumia store Fathehgunj 270 298

Sharhi super store Fathehgunj 370 386Charmi farshan Fathehgunj 430 489 32Cream corner Karelibag 0 0Radhe Brakers Karelibag 0 0

shivshakti super store Alkapuri 285 216Arya Alpahar Alkapuri 360 399 33

Darbar cold drink Akota-Munjmoda 370 401Mahalaxmi store Fathehgunj 270 292Maitri super store Akota-Munjmoda 305 211

Tickling test Akota-Munjmoda 305 309Kothari gen.store Jetalpur naka 305 320

Kailesh hindu hotel Alkapuri 270 285 34Ganghadhar prov. Store Alkapuri 280 199

Sweet corner R.C. Datt road 320 313Hariji namkin R.C. Datt road 430 485 35

Apexa dry food R.C. Datt road 270 287Jaysainath bakery Makarpura 240 225Anand verity store Makarpura 240 269 36Krishna stationary Makarpura 220 235 37

Shri ram dairy Majalpur 200 191Shri ram provision store Majalpur 200 319 38

shiv provision store Majalpur 200 272 39satyajivan store Karelibag 200 295 40

Shri ambika store O.P. road 285 222Rajasthan provision store Manjalpur naka 270 234

Bharat cold drink Makarpura 250 308Neelam pan Makarpura 200 194Kapole store O.P. road 270 314 41

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Awareness: 100

Yes: 94 No: 6

Enroll: 94 Not enroll: 0 Enroll: 0 Not enroll: 6

Benefit don’t know: 6

Benefit know: 0

Benefit don’t know: 18

Benefit know: 76

Not increase sales: 1

Increase sales: 75

Satisfied: 72

Not satisfied: 3

Satisfied: 1 Not satisfied: 0

Rate good: 72

Rate poor: 0

Rate good: 1 Rate poor: 0

Satisfied: 9 Don’t satisfied: 9

Rate good: 9 Rate poor: 9


Ambika general store GIDC 240 282 42Bharat dairy farm Akota 270 316 43

Jolly surprise Akota 370 214Shivam provision & Gen

stroe O.P. road 305 312

CHART WHICH USED FOR ANALYSIS PURPOSE

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College Pepsico Final Report

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