MARKETING STRATEGIES Pepsi Noida.docx

8/20/2019 MARKETING STRATEGIES Pepsi Noida.docx

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A

Summer Training Project Report

On

MARKETING STRATEGIESOf

PEPSI AT NOIDA

Submitted for the partial fulfillment towards the of degree

Post graduate diploma in management

Approved by AICTE

Submitted By:Pradeep kumar

(Pg!"

#$der t%e Super&i'i$ f Dr)S%a*i$i Sri&a'ta&

Departme$t f ma$ageme$t

P't graduate dip*ma i$ ma$ageme$t (PGDM"8, Knowledge par!l, Institutional Area, "reater #oida"autam $uddh #agar %&P', India! ()*+)

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-EC.A/ATI0#

I here by declare that summer training report entitled“1A/KETI#" ST/ATE"IES of PEPSI at

#0I-A” submitted to the HIT! "reater #oida !appro$ed by AI%T& go$t o' India! 'or the partial 'u

'illment o' P0ST "/A-&ATE -IP.01A I# 1A#A"E1E#T %P"-1' degree in an original and

authenticrecord o' my o(n (or) carried out 'or the*+ ,ays under the super$ision o' r- Pradeep .atyal

/A,%! 0arun be$erage #OI,A-

2inally! in the best o' my )no(ledge! it has not published earlier any(here or presented to any

institution3uni$ersity 'or an end o' any degree-

P/A-EEP K&1A/

P"1411

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ACK#02.E-"E1E#T

A tas) underta)en (ithout o''ering prayers to almighty and tal)ing blessings 'rom the elders is not a

good beginning- 6i)e(ise the (or) completed (ithout ac)no(ledging the assistance to those (ho (ere

al(ays by my sides to ma)e my e''orts 'ruit'ul in the tas) le't incomplete-

In the beginning! I (ould li)e to e7press my sincere than)s to 0arun 8e$erage 6td /2ranchisee o' Pepsi

'or gi$ing me an opportunity to ta)e the practical e7perience o' (or)ing li'e-

I con$ey my sincere than)s to ,r-Shalini Sri$asta$ 3AC&.T4 03 5I1T! "reater #oida! r 6 Sharad

7atss %1areting -evelopment 1anager', 1r6 1ano /awat %7arun $everage', 1r6 Pradeep

Katyal%A-C 7arun $everage,#oida' Industry "uide and all family of 7arun $everage 'or

pro$iding me the proper guidance 'or pro$iding me the opportunity to carry out my summer training

project e''ecti$ely and e''iciently- I (ould also li)e to pay than)s to all my boo)s!classmates! 'riends and

my 'amily members 'or co9operating (ith me and helping me to complete the project

PRA,&&P .:AR

Roll #o-P"1411

8A /4rd

Sem

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P/E3ACE

Research project is necessary part 'or 'ul'illment o' P", course- The emphasis in the project is

pro$iding the study and an insight into Indian 2%" 8usiness Scenario-

The summer training project is designed to pro$ide participation o' P", program as on the job

e7perience- This has gi$en a chance to try and apply the academic )no(ledge and gain insight into

corporate culture- This helps in de$eloping decision9ma)ing abilities and emphasi;es on acti$e

participation by the student-

I undertoo) my project in 0arun 8e$erage-! #oida a leading 8ottler and ar)eting partner o' the

Pepsi 2oods- ,uring the training! I had (or)ed on the project 91A/KETI#" ST/ETE"IES 03

PEPSI AT #0I-A:

I gained $aluable e7perience < )no(ledge during the sur$ey- The Project consists o' my 'indings

a'ter tabulation o' collected data! then analy;ed conclusions (ere dra(n and 'inally suggestions (ere

put 'or(ard-

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TA$.E 03 C0#TE#TS

C5APTE/ *

• Introduction

= Objecti$es o' the Study

= 6imitations

C5APTE/ (

• Industrial Pro'ile

= Pepsi India9 Our 0ision

= Pepsi Strategy to Reach Increased #umber o' %ustomers

C5APTE/ +

• Research ethodology

C5APTE/ ;

• 2indings < Analysis

C5APTE/ <

• %onclusion

= 8ibliography

= Anne7ure

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C5APTE/ *

I#T/0-&CTI0#

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About the Topi=

The distribution net(or) o' 0arun 8e$erage is (ell )no(n 'or its e''iciency but company constantly

stri$es 'or the betterment o' their distribution net(or) system- &mphasis o' our study (as to 'ocus

on the customer o' company i-e-! the retailers-

The Retail apping o' #oida is an integral step 'or the assessment! de$elopment and betterment o'

this system- The distribution system not only comprises the mo$ement o' the products but also

incorporates the merchandising o' the product! (hich is $ery broad in its pur$ie(-

The project incorporates the analysis o' the per'ormance o' 0arun 8e$erage and probing

into opportunities o' increasing the mar)et share in #OI,A- The entire process had to be in an

organi;ed manner in order to deli$er meaning'ul results 'or the purpose o' decision9ma)ing- The

project (as that o' mar)et research (ith sur$eys and obser$ations as its major phases (ith the

objecti$e o' gathering o' all important in'ormation material 'or strengthening the position o' 0arun

8e$erage at #oida-

P&PSI boasts o' ha$ing the ma7imum mar)et share in the be$erage segment at noida and is in

constant process 'or the betterment o' its product per'ormance and customer as (ell retailer?s

satis'action-

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5IST0/4 03 PEPSI

%aleb 8radham o' #e( 8ern! #orth %arolina (as a pharmacist- 6i)e many pharmacists at the turn o'

the century he had a soda 'ountain in his drugstore! (here he ser$ed his customers re'reshing drin)s! that

he created himsel'- 5is most popular beverage was something he =alled >$rad?s drin> made of

=arbonated water, sugar, vanilla, rare oils, pepsin and =ola nuts6

8radBs drin)! created in the summer o' 1CD4! (as later renamed Pepsi %ola in 1CDC a'ter the pepsin

and cola nuts used in the recipe- In 1CDC! %aleb 8radham (isely bought the trade name Pepsi9%ola 'or

E1FF 'rom a competitor 'rom #e(ar)! #e( Gersey that had gone bro)e-

In 1DF5! he launched the Pepsi9%ola %ompany in the bac) room o' his pharmacy! and applied to the :-S

Patent O''ice 'or a trademar)- At 'irst! he mi7ed the syrup himsel' and sold it e7clusi$ely through soda

'ountains- 8ut soon %aleb recogni;ed that a greater opportunity e7isted to bottle Pepsi so that people

could drin) it any(here-

The business began to gro(! and on Gune 1>! 1DF4! Pepsi9%ola (as o''icially registered (ith the :-S-

Patent O''ice- That year! %aleb sold @!D>C gallons o' syrup! using the theme line &7hilarating

In$igorating! Aids ,igestion- He also began a(arding 'ranchises to bottle Pepsi to independent

in$estors! (hose number gre( 'rom just t(o in 1DF+! in the cities o' %harlotte and ,urham! #orth

C

http://inventors.about.com/library/bl_by_state_inventors.htm#North%20Carolinahttp://inventors.about.com/library/bl_by_state_inventors.htm#North%20Carolina


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%arolina! to 1+ the 'ollo(ing year! and *F by 1DF@- 8y the end o' 1D1F! there (ere Pepsi9%ola

'ranchises in 5* states-

Pepsi9%olaBs 'irst bottling line resulted 'rom some less9than9sophisticated engineering in the bac) room

o' %alebBs pharmacy- 8uilding a strong 'ranchise system (as one o' %alebBs greatest achie$ements-

6ocal Pepsi9%ola bottlers! entrepreneurial in spirit and dedicated to the productBs success! pro$ided a

sturdy 'oundation- They (ere the cornerstone o' the Pepsi9%ola enterprise- 8y 1DF@! the ne( company

(as selling more than 1FF!FFF gallons o' syrup per year-

"ro(th (as phenomenal! and in 1DFD %aleb erected a headuarters so

spectacular that the to(n o' #e( 8ern pictured it on a postcard- 2amous

racing car dri$er 8arney Old 'ield endorsed Pepsi in ne(spaper ads as "A

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

A'ter se$enteen years o' success! %aleb 8radham lost Pepsi %ola- He had gambled on the 'luctuations o'

sugar prices during --I! belie$ing that sugar prices (ould continue to rise but they 'ell instead lea$ing

%aleb 8radham (ith an o$erpriced sugar in$entory- Pepsi %ola (ent ban)rupt in 1D54-

In 1D41! Pepsi %ola (as bought by the 6o't %andy %ompany 6o't president! %harles "- "uth (ho

re'ormulated the popular so't drin)- "uth struggled to ma)e a success o' Pepsi and e$en o''ered to sell

Pepsi to the %oca9%ola company! (ho re'used to o''er a bid-

In 1D*F! history (as made (hen the 'irst ad$ertising jingle (as broadcast nationally- The jingle (as

#ic)el #ic)el an ad$ertisement 'or Pepsi %ola that re'erred to the price o' Pepsi and the uantity 'or

that price- #ic)el #ic)el became a hit record and (as recorded into 'i'ty9'i$e languages-

D

http://inventors.about.com/library/inventors/blcocacola.htmhttp://inventors.about.com/library/inventors/blcocacola.htm


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0$@ECTI7E03 T5E

ST&-4

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The Project 91areting Strategy of PEPSI at #oida City6: (as designed on the lines o' basic

in$estment decisions to be ta)en by the senior o''icials o' P&PSI 'or the purpose o' amendments in the

pre9e7isting distribution net(or) in order to re$ie( and strengthen the routes- The 'indings o' the project

are $ery crucial 'or the increment o' the mar)et share o' P&PSI at the 0arun 8e$erage #oida! ar)et-

Though the process is an ongoing one but the decisions ha$e to be ta)en on a strong base!

supported by 'acts and 'igures and that too on papers- This support can only be pro$ided (ith the help o'

an e7tensi$e and through analysis o' the mar)et and the data collected thereo'-

The objecti$es o' the project (ere deli$ered to us e7press sly by the ar)eting ,e$elopment

coordinator (ho (as the lead or the project head and (e had to submit the day report to him along (ith

the dra't report- He (as the in charge o' the project and ga$e guidelines and directions to approach the

project-

The obe=tives of the proe=t are

To analy;e! interpret and study the entire be$erage mar)et o' #oida-

%omparati$e study o' the $arious brands! pac)s and 'la$ors a$ailable in the mar)et-

Analysis o' the strong and (ea) point o' the competitors products and compare it (ith 0arun

8e$erage-

To assess the reach and 'easibility o' the product and gi$e the output 'or 'urther in$estment 'or

enhancing the distribution net(or) along (ith assessing the e''iciency o' the current distribution

system-

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Assess the promotional measures in the conte7t to the sales o' 0arun be$erage and 'ocusing our

study on the customer o' company i-e-! the retailers-

As ob$ious that any company is concern (ith the increase in sales o' its products! our project

(as in line (ith the companies? objecti$es and all steps incorporate in the project (ere directed to gi$e

an o$er$ie( so as to attain its objecti$es-

The mar)et research conducted by us (as in accordance to the company?s rules and policies

(hich (ere uite material 'or the e''icient and e''ecti$e results and in'erences to be dra(n 'rom the

entire process-

The mar)et research (as conducted in compliance o' the gi$en guidelines deli$ered to us

e7pressly to achie$e the gi$en objecti$es! (hich (ere as underJ

1- Pro'itability 4- Impro$ement

5- Sales *- To satis'y the customers

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.I1ITATI0#S

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.I1ITATI0#S

• The retailers in many cases reluctant to ans(ered many uestions-

• The respondents may be biased on in'luenced by some other 'actors-

• Time and money (ere the greatest limitation in carrying out the sur$ey-

• A number o' retailers /pan9shop being illiterate! it too) us lot o' time in collecting

in'ormation-

• The mere in'ormation (hich (e get 'rom the retailers is not su''icient to arri$e at a

conclusion-• The seasonal changes a''ect the sales-

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C5APTE/ (

I#-&ST/4

P/03I.E

The Competitor 1aret Share B Strength

In cold drin)s segment! Pepsi has large potential 'or the sales o' their products-

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As 'ar as cold drin)s products is concerned the so't drin)s industry has only t(o9product

supplier-

1-%oca9cola

5- Pepsi

Ho(e$er! considering the $olume o' sales and perception o' the consumer the main competitor 'or Pepsi

(ould be! %oca9cola

%ocacola has a good number o' sale $olumes- A clearer picture o' (ho is eating out Pepsi?s share can be

obtained by 'inding out the mar)et share o' each player- .eeping in mind the same obtained the mar)et

share o' each supplier o' Pepsi products-

The mar)et has too many players (ith a number o' unbranded ones- I ha$e put together these unbranded

ones as the K6ocal? brand- The mar)et share is calculated purely in terms o' $olumes sold! there'ore it

(as imperati$e to calculate the mar)et share 'or each o' the Pepsi products apart 'rom the o$erall mar)et

share (here all the Pepsi products (ere put together and summation (as ta)en- Indi$idual product?s

share (as calculated so that Pepsi?s position in each o' the products may be )no(n-

/ivalry with Co=a!Cola

hile some people claim that Pepsi tastes e7actly the same as %oca9%ola! other people say they can tell

a di''erence in the t(o sodas- In the past! the di''erence in taste bet(een Pepsi and The %oca9%ola

%ompanyBs %oca9%ola (as e$en greater than it is today-

In 1DC+! The %oca9%ola %ompany! amid much publicity! changed the 'ormula- Some authorities belie$e

that #e( %o)e! as the re'ormulated drin) came to be )no(n! (as in$ented speci'ically to respond to

Pepsi- #umerous blind taste tests suggested that more consumers pre'erred the taste o' Pepsi /(hich is

belie$ed to ha$e more lemon oil! less orange oil! and uses $anillin rather than $anilla to %o)e- In taste

1>

http://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Coca-Cola_formulahttp://en.wikipedia.org/wiki/New_Cokehttp://en.wikipedia.org/wiki/Blind_taste_testhttp://en.wikipedia.org/wiki/Lemonhttp://en.wikipedia.org/wiki/Orange_(fruit)http://en.wikipedia.org/wiki/Vanillinhttp://en.wikipedia.org/wiki/Vanillahttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Coca-Cola_formulahttp://en.wikipedia.org/wiki/New_Cokehttp://en.wikipedia.org/wiki/Blind_taste_testhttp://en.wikipedia.org/wiki/Lemonhttp://en.wikipedia.org/wiki/Orange_(fruit)http://en.wikipedia.org/wiki/Vanillinhttp://en.wikipedia.org/wiki/Vanilla


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tests! drin)ers (ere more li)ely to respond positi$ely to s(eeter drin)s! and Pepsi had the ad$antage

o$er %oca9%ola because it is much s(eeter-

%oca9%ola outsells Pepsi in the :S o$erall because %oca9%ola is sold e7clusi$ely in more locations!

such as restaurants that sell %oca9%ola! but not Pepsi-

8y most accounts! %oca9%ola (as IndiaBs leading so't drin) until 1D@@ (hen it le't India a'ter a ne(

go$ernment ordered the company to turn o$er its secret 'ormula 'or %oca9%ola and dilute its sta)e in its

Indian unit as reuired by the 2oreign &7change Regulation Act /2&RA- In 1DCC! Pepsi gained entry to

India by creating a joint $enture (ith the Punjab go$ernment9o(ned Punjab Agro Industrial %orporation

/PAI% and 0oltas India 6imited- This joint $enture mar)eted and sold 6ehar Pepsi until 1DD1 (hen the

use o' 'oreign brands (as allo(edL Pepsi bought out its partners and ended the joint $enture in 1DD*- In

1DD4! %oca9%ola returned in pursuance o' IndiaBs 6iberali;ation policy- In 5FF+! %oca9%ola and Pepsi

together held D+M mar)et share o' so't9drin) sales in India- %oca9%ola IndiaBs mar)et share (as >F-DM-

Others claim that due to rumors o' the use o' cocaine! %o)e (as banned 'or a long time in India and

recently the ban (as li'ted! ho(e$er! Pepsi had maintained a commanding mar)et share-

Pepsi had long been the drin) o' %anadian 2rancophone?s and it continues to hold its dominance by

relying on local Nubcois celebrities /especially %laude eunier ! o' 6a Petite 0ie 'ame to sell its

product- Pepsi e$entually became an o''ensi$e nic)name 'or 2rancophone?s $ie(ed as a lo(er class by

Anglophones in the middle o' the 5Fth century- The term is no( used as a historical re'erence to 2rench9

&nglish linguistic animosity /,uring the partitions debate surrounding the 1DD+ re'erendum! a pundit

(rote! And a (all (ill be erected along St96aurent street the traditional di$ide bet(een 2rench and

&nglish in ontralQ because some people (ere thro(ing %o)e bottle one (ay and Pepsi bottles the

other (ay-

1@

http://en.wikipedia.org/wiki/1977http://en.wikipedia.org/wiki/1988http://en.wikipedia.org/w/index.php?title=Punjab_Agro_Industrial_Corporation&action=edithttp://en.wikipedia.org/w/index.php?title=Voltas_India_Limited&action=edithttp://en.wikipedia.org/w/index.php?title=Voltas_India_Limited&action=edithttp://en.wikipedia.org/wiki/1994http://en.wikipedia.org/wiki/1993http://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Cocainehttp://en.wikipedia.org/wiki/Francophonehttp://en.wikipedia.org/wiki/Qu%C3%A9b%C3%A9coishttp://en.wikipedia.org/w/index.php?title=Claude_Meunier&action=edithttp://en.wikipedia.org/w/index.php?title=Claude_Meunier&action=edithttp://en.wikipedia.org/wiki/La_Petite_Viehttp://en.wikipedia.org/wiki/La_Petite_Viehttp://en.wikipedia.org/wiki/Nicknamehttp://en.wikipedia.org/wiki/Anglophonehttp://en.wikipedia.org/wiki/1977http://en.wikipedia.org/wiki/1988http://en.wikipedia.org/w/index.php?title=Punjab_Agro_Industrial_Corporation&action=edithttp://en.wikipedia.org/w/index.php?title=Voltas_India_Limited&action=edithttp://en.wikipedia.org/wiki/1994http://en.wikipedia.org/wiki/1993http://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Cocainehttp://en.wikipedia.org/wiki/Francophonehttp://en.wikipedia.org/wiki/Qu%C3%A9b%C3%A9coishttp://en.wikipedia.org/w/index.php?title=Claude_Meunier&action=edithttp://en.wikipedia.org/wiki/La_Petite_Viehttp://en.wikipedia.org/wiki/Nicknamehttp://en.wikipedia.org/wiki/Anglophone


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According to %onsumer Reports! in the 1D@FBs! the ri$alry continued to heat up the mar)et- Research

pro$ed that Pepsi is pre'erred o$er %oca9%ola- The (ay that they pro$ed this (as by blind taste tests that

(ere conducted in stores- These tests (ere called %hallenge 8ooths- The sales o' Pepsi started to

climb! and Pepsi )ic)ed o'' the %hallenge across the nation-

ore importantly! Pepsi outsells its ri$al in grocery and con$enience stores in the :-S- /regarded as an

indicator o' consumer pre'erence! (ith %oca9%olaBs dominance in e7clusi$e restaurant! mo$ie theater

amusement par)! college! and stadium deals gi$ing %o)e the o$erall sales ad$antage- In the :-S-! PepsiBs

total mar)et share (as about 41-@ percent in 5FF*! (hile %o)eBs (as about *4-1 percent-

In Russia! Pepsi once had a larger mar)et share than %oca9%ola- Ho(e$er! PepsiBs dominance in Russia

(as undercut as the %old ar ended- Pepsi had made a deal (ith the So$iet :nion 'or scale production

o' Pepsi in 1D@5- hen the So$iet :nion 'ell apart! Pepsi! (as associated (ith the old So$iet system!

and %oca %ola! just ne(ly introduced to the Russian mar)et in 1DD5! (as associated (ith the ne(

system- Thus! %o)e rapidly captured a signi'icant mar)et share a(ay 'rom Pepsi that might other(ise

ha$e needed years to build up- 8y Guly 5FF+! %oca9%ola enjoyed a mar)et share o' 1D-* percent!

'ollo(ed by Pepsi (ith 14 percent-

According to %onsumer Reports! the o$erall ad$ertising o' the t(o companies still in$ol$e t$

commercials that endorse the image o' youth! beauty! 'amily togetherness! 'un! pleasure! celebrity and

patriotism- These components are e7pected to bring positi$es to the company so that the ri$alry (ill

continue on

3/&IT $E7E/A"ES 1A/KET

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The 'rui t drin) mar)et has recently (itnessed e7pansion (ith the entry o' se$eral ne(

players- The mar)et has been progressing in terms o' product content and there are

three major product contents a$ailable-

* Drinks: Guice (ith pulp content less than *FM

* Nectars: Guice (ith pulp content bet(een *F9CFM

@ui=esJ juice (ith pulp content more than CFM

ith de$elopment in the tetra9pac) mar)et! there is a natural

progression 'rom drin)s to nectars to juices- h ile traditionally 'ruit drin)s (ere

aimed at children! the ne( brands l i)e Onjus! Real ! and 6i'e ha$e 'ocused on young

adul ts and pro'essionals - Ta)e the case o' mar)et l eader Parl e Agro (hich has

launched

Apply (ith a ne( slim pac) to attract youngsters- Although 'ruit drin)s 'ocus strongly

on out9o' 9home consumpt ion ! the juices and nectar s ha$e been concentra ting on

ta)ea(ays or in9home consu mption- ith more choice coming in! the tetra9pac) mar)et

is li)ely to (itness 'urther segmentation-

1A/KET SIE , "/02T5 A#- -E1A#-

The total ' ru it be$erage mar)et i s p laced a t Rs- 55 b il lion (ith the ' ru i t based

be$erage mar)et constituting 5+M o' the o$erall mar)et- Thus the 'ruit based mar)et

has current ly a potent ial o' Rs -+-+9> bi l l ion- :nt i l 4 years ago! the mar)et ! (hich

largely consisted o' 'ruit drin)s! (as gro(ing at 4FM due to its lo( base- 8ut (ith the

1D


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launch o' ne( products in the niche segments l i)e nectars and juices! the 'rui t drin)

mar)et gro(th reduced to 1FM as compared to 4FM gro(th rate o' juices and nectars-

The pure 'ruit juices segment is estimated at 1FF crores and is gro(ing at *F M gro(th

rate (hile the synthetic segment is at 1F M only- The per capita consumption o' juices

in India is estimated at 5FF ml (hich is e7pected to rise gi$en %hina has

at tained a consumpt ion le$el o' 1+FFml- As per the s tudy by c.insey and %o and

%II! the mar)et s i;e o' al l 'rui t be$erages is projected to gro( $ery 'ast to Rs 5F 8ln

le$el by the year 5FFF 'rom Rs 4-+ 8ln le$el currently- This ' igure is not inclusi$e o'

e7por ts - The (or th o' tet ra9pac) mar)et i s current ly es t imated to be around Rs -*FF

crore! (hich is 1FM o' the total so't drin) mar)et- At present! the tetra9pac) mar)et is

gro(ing at a rate o' 1FM915M! and in the near 'uture! companies l i)e Peps i%o Inc-

/Tropicana are e7pecting a gro(th rate o' *FM- 8ut "odrej 2oods is s)eptical o' the

gro(th rates and estimates it to be at 1+M due to onslaught o' carbonated so't drin)s-

In9 home pac)s do not (i tness any seasonal i ty in the mar)et and there dis t r ibut ion

patterns remain normal throughout the year- Out9o'9home pac)s li)e 5+F ml 'ace a lot

o' pea)s and troughs and there is a lot o' seasonali ty! (hich has to be loo)ed a'ter to

manage demand and shoot pro'its-

,emands Past < 2uture

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2rom the abo$e table! the gro(th in

mar)et can be seen as

Increasing constantly 'rom @ to

1> M in 5FFD95F1F- In the ne7t si7 to

se$en years! the mar)et is poised to

gro( at 5FM appro7imately-

The 'ruit be$erages mar)et in the Indian

continent is segmented ;one9(ise as 'ollo(sJ

one (ise Shares

S e g m e n t S h a r e % D '

# o r t h I n d i a ( <

E a s t I n d i a ( )

2 e s t I n d i a + *

S o u t h I n d i a ( ;

51

4 e a r ? ) ) ) 1 T

* F ! 8 * + F 6

* 8 ! * ; F 6 ;

* ! ) ) * < F 6 <

( ) ) ) ! ) * * F 6

( ) ) * ! ) ( ( * * 6 )

( ) ) ( ! ) + ( ( 6 (

( ) ) + ! ) ; ( 8 6 (

( ) ) ; ! ) < + ; ) 6 )

( ) ) < ! ) + ) 6

( ) ) ! ) F ; ; F 6

( ) ) F ! ) 8 < * ) 6 +

( ) ) ! * ) < F 6 (

( ) * ( ! * + * ) ; + 6 F

( ) * + ! ( ) * ; * ( 8 + 6 F


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Thus the 'rui t be$erage mar)et has more acceptance in #orthern and estern India!

(hich is due to the cl imact ic condi t ions pre$ai l ing there relat i$e to the res t o' the

country-

Soft -rins Industry

In India! so't drin)s are readily a$ailable in $arious public places 'rom roadside stalls /(arungs to small

shops- They are (idely consumed by all le$els os society! education and (or) groups

Studies by an independent research institution /6P& o' the :ni$ersity o' Indonesia and mar)eting

research agency ,&.A ha$e sho(nJ

55

* ) ! * ! * ! F * + 6 8 D

* ! F G ( ) ) ( ! ) + * ; 6 ( D

()) F!) 8 ! ( )* + ! * ; ( < 6 < D


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In 1DDD! C+M o' monthly so't drin) consumers had an a$erage household income o' less than R p 1 million /:SE 1FF per month- O' these *>M (as less than Rp +FF!FF /:SE +F

Se$enty9t(o percent o' (ee)ly consumers had an a$erage household

income o' less than Rp- 1 million per month- O' these o$er *FM are either

students! partially employed people or pensioners-

Amongst (ee)ly consumers! so't drin)s are consumed as o'ten as syrupand

snac) 'oods and 'ar more than ice cream-

ith the (ide consumption o' so't drin)s! the industry o''ers an enormous yet untapped potential (ith

its lo( per capita consumption and the large young population-

Today! the country has one o' the lo(est rates o' consumption o' %oca9%ola company products /only 14

Co;9ser$ings per person per year! compared to alaysia /44! Philippines /155 and Singapore /1*1-

8ecause so't drin)s sales are sensiti$e to price! e$ery e''ort has been made to maintain a''ordability- In

1DD@ you could buy 11 small bottles o' carbonated so't drin)s or ready9to9drin) tea (ith the daily

minimum (age in Ga)arta and 14 in 5FF1- Ho(e$er! you could buy 5F+ candies (ith the same minimum

(age in 1DD@ and only 14> in 5FF1-

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In terms o' job creation opportunity! the so't drin) industry has a high employment multiplier- At *-F5+

times! it ran)s 1*th against the other >> industry sectors in the country- This means that 'or e$ery one job

created! or lost! in the so't drin) industry then 'our (ill be created! or lost! at the national le$el-

2or e$ery one job created in the so't drin) industry! 'our (ill be created at

the national le$el

&ighty percent o' so't drin) sales are made through retailers and

(holesalers! o' (hich DFM are considered small9scale businesses- 2or

these small9scale businesses! so't drin) products are their most important merchandise 9 contributing

4+M o' total sales and generating 4*M o' pro'it-

Other supporting industries a''ected by the acti$ity in the so't drin) industry include glass! bottle

closures! transport and media- CFM o' so't drin) sales are made through retailers and (holesalers.

PepsiCo In=6 / #S&J P&P is an American multinational corporation headuartered in Purchase! #e(

or)! :nited States! (ith interests in the manu'acturing! mar)eting and distribution o' grain9based snac)

'oods! be$erages! and other products- Pepsi%o (as 'ormed in 1D>+ (ith the merger o' the Pepsi9

%ola %ompany and 2rito96ay! Inc- Pepsi%o has since e7panded 'rom its namesa)e product Pepsi to a

broader range o' 'ood and be$erage brands! the largest o' (hich include an acuisition o' Tropicana in

1DDC and a merger (ith Nua)er Oats in 5FF1 U (hich added the "atorade brand to its port'olio as (ell-

As o' 5FFD! 1D o' Pepsi%oBs product lines generated retail sales o' more than E1 billion each! and the

company?s products (ere distributed across more than 5FF countries! resulting in annual net re$enues o'

E*4-4 billion- 8ased on net re$enue! Pepsi%o is the second largest 'ood < be$erage business in the

5*

http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=pephttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Purchase,_New_Yorkhttp://en.wikipedia.org/wiki/Pepsi-Colahttp://en.wikipedia.org/wiki/Pepsi-Colahttp://en.wikipedia.org/wiki/Frito-Layhttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Net_revenuehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=pephttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Purchase,_New_Yorkhttp://en.wikipedia.org/wiki/Pepsi-Colahttp://en.wikipedia.org/wiki/Pepsi-Colahttp://en.wikipedia.org/wiki/Frito-Layhttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Net_revenue


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(orld- ithin #orth America! Pepsi%o is ran)ed /by net re$enue as the largest 'ood and be$erage

business-

Indra .rishnamurthy #ooyi has been the chie' e7ecuti$e o' Pepsi%o since 5FF>! and the company

employed appro7imately 5C+!FFF people (orld(ide as o' 5F1F- The company?s be$erage distribution

and bottling is conducted by Pepsi%o as (ell as by licensed bottlers in certain regions- Pepsi%o is a SI%

5FCF/be$erage company-

The recipe 'or Pepsi! the so't drin)! (as 'irst de$eloped in the 1CDFs by a #e( 8ern! #orth

%arolina pharmacist and industrialist! %aleb 8radham! (ho named it Pepsi9%ola in 1CDC- As the cola

de$eloped in popularity! he created the Pepsi-Cola Company in 1DF5 and registered a patent 'or his

recipe in 1DF4- The Pepsi9%ola %ompany (as 'irst incorporated in the state o' ,ela(are in 1D1D-The

company (ent ban)rupt in 1D41 and on Gune C o' that year the trademar) and syrup recipe (as bought

by %harles "uth (ho o(ned a syrup manu'acturing business in 8altimore! aryland- "uth (as also the

president o' 6o't! Incorporated! a leading candy manu'acturer and used the companyBs labs and chemists

to re'ormulate the syrup- He 'urther contracted to stoc) the soda in 6o'tBs large chain o' candy shops and

restaurants! (hich (ere )no(n 'or their soda 'ountains! used 6o't resources to promote Pepsi! and

mo$ed the soda company to a location close by 6o'tBs o(n 'acilities in #e( or) %ity- In 1D4+ the

shareholders o' 6o't sued "uth 'or his D1M sta)e o' Pepsi%o in the landmar) "uth $- 6o't Inc-- 6o't (on

the suit and on ay 5D! 1D*1 'ormally absorbed Pepsi into 6o't! (hich (as then rebranded as Pepsi%o-

/6o't restaurants and candy stores (ere spun o'' at this time- In the early 1D>Fs the company product

line e7panded (ith the creation o' ,iet Pepsi and purchase o' ountain ,e(-

Separately! the Frito Company and H.. !ay Company U t(o American potato and corn chip snac)

manu'acturers U began (or)ing together in 1D*+ (ith a licensing agreement allo(ing H-- 6ay to

5+

http://en.wikipedia.org/wiki/Indra_Nooyihttp://en.wikipedia.org/wiki/SIC_2080http://en.wikipedia.org/wiki/SIC_2080http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/New_Bernhttp://en.wikipedia.org/wiki/North_Carolinahttp://en.wikipedia.org/wiki/North_Carolinahttp://en.wikipedia.org/wiki/Caleb_Bradhamhttp://en.wikipedia.org/wiki/Charles_Guthhttp://en.wikipedia.org/wiki/Loft,_Incorporatedhttp://en.wikipedia.org/wiki/Guth_v._Loft_Inc.http://en.wikipedia.org/wiki/Diet_Pepsihttp://en.wikipedia.org/wiki/Mountain_Dewhttp://en.wikipedia.org/wiki/Indra_Nooyihttp://en.wikipedia.org/wiki/SIC_2080http://en.wikipedia.org/wiki/SIC_2080http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/New_Bernhttp://en.wikipedia.org/wiki/North_Carolinahttp://en.wikipedia.org/wiki/North_Carolinahttp://en.wikipedia.org/wiki/Caleb_Bradhamhttp://en.wikipedia.org/wiki/Charles_Guthhttp://en.wikipedia.org/wiki/Loft,_Incorporatedhttp://en.wikipedia.org/wiki/Guth_v._Loft_Inc.http://en.wikipedia.org/wiki/Diet_Pepsihttp://en.wikipedia.org/wiki/Mountain_Dew


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distribute 2ritos in the Southeastern :nited States- The companies merged to become Frito-!ay, #nc. in

1D>1-

In 1D>+! the Pepsi9%ola %ompany merged (ith 2rito96ay! Inc- to become PepsiCo, #nc.! the company it

is )no(n as at present- At the time o' its 'oundation! Pepsi%o (as incorporated in the state

o' ,ela(are and headuartered in anhattan! #e( or)- The companyBs headuarters (ere relocated to

its still9current location o' Purchase! #e( or) in 1D@F! and in 1DC> Pepsi%o (as reincorporated in the

state o' #orth %arolina-

A=Huisitions and divestments

8et(een the late91D@Fs and the mid91DDFs! Pepsi%o e7panded $ia acuisition o' businesses outside o'

its core 'ocus o' pac)aged 'ood and be$erage brandsL ho(e$er it e7ited these non9core business lines

largely in 1DD@! selling some! and spinning o'' others into a ne( company named Tricon "loba

Restaurants! (hich later became )no(n as umV 8rands! Inc- Pepsi%o also pre$iously o(ned se$era

other brands that it later sold! in order to allo( it to return 'ocus to its primary snac) 'ood and be$erage

lines! according to in$estment analysts reporting on the di$estments in 1DD@- 8rands 'ormerly o(ned by

Pepsi%o includeJ Pi;;a Hut! Taco 8ell! .2%! Hot Bn #o(! &ast Side arioBs! ,BAngelo Sand(ich

Shops! %he$ys 2resh e7! %ali'ornia Pi;;a .itchen!Stolichnaya /$ia licensed agreement! ilson

Sporting "oods and #orth American 0an 6ines-

The di$estments concluding in 5FF@ (ere 'ollo(ed by multiple large9scale acuisitions! as Pepsi%o

began to e7tend its operations beyond so't drin)s and snac) 'oods into other lines o' 'oods and

be$erages- Pepsi%o purchased the orange juice company Tropicana Products in 1DDC! and merged

(ith Nua)er Oats %ompany in 5FF1! adding (ith it the "atorade sports drin) line and other Nua)er Oats

brands such as %he(y "ranola 8ars and Aunt Gemima! among others-

5>

http://en.wikipedia.org/wiki/Fritoshttp://en.wikipedia.org/wiki/Delawarehttp://en.wikipedia.org/wiki/Manhattanhttp://en.wikipedia.org/wiki/Purchase,_New_Yorkhttp://en.wikipedia.org/wiki/North_Carolinahttp://en.wikipedia.org/wiki/Tricon_Global_Restaurantshttp://en.wikipedia.org/wiki/Tricon_Global_Restaurantshttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/Pizza_Huthttp://en.wikipedia.org/wiki/Taco_Bellhttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Hot_'n_Nowhttp://en.wikipedia.org/wiki/East_Side_Mario'shttp://en.wikipedia.org/wiki/East_Side_Mario'shttp://en.wikipedia.org/wiki/D'Angelo_Sandwich_Shopshttp://en.wikipedia.org/wiki/D'Angelo_Sandwich_Shopshttp://en.wikipedia.org/wiki/Chevys_Fresh_Mexhttp://en.wikipedia.org/wiki/Chevys_Fresh_Mexhttp://en.wikipedia.org/wiki/California_Pizza_Kitchenhttp://en.wikipedia.org/wiki/Stolichnayahttp://en.wikipedia.org/wiki/Stolichnayahttp://en.wikipedia.org/wiki/Wilson_Sporting_Goodshttp://en.wikipedia.org/wiki/Wilson_Sporting_Goodshttp://en.wikipedia.org/wiki/North_American_Van_Lineshttp://en.wikipedia.org/wiki/Orange_juicehttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Chewy_Granola_Barshttp://en.wikipedia.org/wiki/Aunt_Jemimahttp://en.wikipedia.org/wiki/Aunt_Jemimahttp://en.wikipedia.org/wiki/Fritoshttp://en.wikipedia.org/wiki/Delawarehttp://en.wikipedia.org/wiki/Manhattanhttp://en.wikipedia.org/wiki/Purchase,_New_Yorkhttp://en.wikipedia.org/wiki/North_Carolinahttp://en.wikipedia.org/wiki/Tricon_Global_Restaurantshttp://en.wikipedia.org/wiki/Tricon_Global_Restaurantshttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/Pizza_Huthttp://en.wikipedia.org/wiki/Taco_Bellhttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Hot_'n_Nowhttp://en.wikipedia.org/wiki/East_Side_Mario'shttp://en.wikipedia.org/wiki/D'Angelo_Sandwich_Shopshttp://en.wikipedia.org/wiki/D'Angelo_Sandwich_Shopshttp://en.wikipedia.org/wiki/Chevys_Fresh_Mexhttp://en.wikipedia.org/wiki/California_Pizza_Kitchenhttp://en.wikipedia.org/wiki/Stolichnayahttp://en.wikipedia.org/wiki/Wilson_Sporting_Goodshttp://en.wikipedia.org/wiki/Wilson_Sporting_Goodshttp://en.wikipedia.org/wiki/North_American_Van_Lineshttp://en.wikipedia.org/wiki/Orange_juicehttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Chewy_Granola_Barshttp://en.wikipedia.org/wiki/Aunt_Jemima


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In August 5FFD! Pepsi%o made a E@ billion o''er to acuire the t(o largest bottlers o' its products in

#orth AmericaJ Pepsi 8ottling "roup and PepsiAmericas- In 5F1F this acuisition (as completed

resulting in the 'ormation o' a ne( (holly o(ned subsidiary o' Pepsi%o! Pepsi $everages Company- In

2ebruary 5F11! the company made its largest international acuisition by purchasing a t(o9thirds

/majority sta)e in imm98ill9,ann 2oods! a Russian 'ood company (hich produces mil)! yogurt! 'ruit

juices and dairy products- hen it acuired the remaining 54M sta)e o' imm98ill9,ann 2oods in

October 5F11! Pepsi%o became the largest 'ood and 8e$erage %ompany in Russia-

Competition

The %oca9%ola %ompany has historically been considered Pepsi%o?s primary competitor in the be$erage

mar)et! and in ,ecember 5FF+! Pepsi%o surpassed The %oca9%ola %ompany in mar)et $alue 'or the 'irst

time in 115 years since both companies began to compete- In 5FFD! the %oca9%ola %ompany held a

higher mar)et share in carbonated so't drin) sales (ithin the :-S- In the same year! Pepsi%o maintained

a higher share o' the :-S- re'reshment be$erage mar)et! ho(e$er! re'lecting the di''erences in product

lines bet(een the t(o companies- As a result o' mergers! acuisitions and partnerships pursued by

Pepsi%o in the 1DDFs and 5FFFs! its business has shi'ted to include a broader product base! including

'oods! snac)s and be$erages- The majority o' Pepsi%oBs re$enues no longer come 'rom the production

and sale o' carbonated so't drin)s- 8e$erages accounted 'or less than +F percent o' its total re$enue in

5FFD- In the same year! slightly more than >F percent o' Pepsi%oBs be$erage sales came 'rom its primary

non9carbonated brands! namely "atorade and Tropicana-

Pepsi%oBs 2rito96ay and Nua)er Oats brands hold a signi'icant share o' the :-S- snac) 'ood mar)et!

accounting 'or appro7imately 4D percent o' :-S- snac) 'ood sales in 5FFD- One o' Pepsi%oBs primary

competitors in the snac) 'ood mar)et o$erall is .ra't 2oods! (hich in the same year held 11 percent o'

the :-S-

5@

http://en.wikipedia.org/wiki/Pepsi_Bottling_Grouphttp://en.wikipedia.org/wiki/Pepsi_Bottling_Grouphttp://en.wikipedia.org/wiki/PepsiAmericashttp://en.wikipedia.org/wiki/Wholly_owned_subsidiaryhttp://en.wikipedia.org/wiki/Wholly_owned_subsidiaryhttp://en.wikipedia.org/wiki/Wimm-Bill-Dann_Foodshttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Kraft_Foodshttp://en.wikipedia.org/wiki/Kraft_Foodshttp://en.wikipedia.org/wiki/Pepsi_Bottling_Grouphttp://en.wikipedia.org/wiki/PepsiAmericashttp://en.wikipedia.org/wiki/Wholly_owned_subsidiaryhttp://en.wikipedia.org/wiki/Wimm-Bill-Dann_Foodshttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Kraft_Foods


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C01PA#4 P/03I.E

5C


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Pepsi pre'ers to position itsel' as the be$erage choice o' the 9#ew "eneration:, 9"eneration

#et:, or ust as the 9Pepsi "eneration:6 These terms adopted in Pepsi?s ad$ertising campaigns are

re'erring to the mar)ets that mar)eters re'er to as "eneration J- The "eneration W consumer is pro'iled

to be bet(een the ages o' 1C to 5D- They ha$e high e7pectations in li'e and are $ery mobile and acti$e-

They adopt a li'estyle o' li$ing 'or today and not (orrying about long9term goals- Though Pepsi?s main

emphasis is on this segment but they also ha$e a 'ocus on the 15 to 1C year old mar)et-

The rich deep blue coloring represents eternal youth'ulness and openness- ar)eting plans li)e

“-ar e Aage @eet hai”! “"ot another Pepsi”! “Change the game” ha$e made Pepsi one o' the coolest

brands recogni;ed among teens in the top 'i$e and the only be$erage product in this category-

ST/E#"T5 B 2EAK#ESSES

Pepsi %ola throughout its 1FF years o' e7istence has de$eloped much strength- One o' the

strengths that ha$e de$eloped Pepsi into such a large corporation is a strong 'ranchise system- The

strong 'ranchise system (as the bac)bone o' success along (ith a great entrepreneur spirit- Pepsi?s

'ranchise system and distributors is credited to bring Pepsi 'rom a @!D>C gallons o' soda sold in 1DF4 to

nearly + billion gallons in the year o' 1DD@-

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Pepsi also has the lu7ury to spend 55+ million dollars in ad$ertising a year- Thisenormous budget

allo(s Pepsi to rein'orce their products (ith reminder ad$ertising and promotions- This large budget

also allo(s Pepsi to introduce ne( products and $ery uic)ly ma)e the consumer become a(are o' their

ne( products-

0arun 8e$erage pro$ides ad$ertising! mar)eting! sales and promotional support to Pepsi9

bottlers and 'ood ser$ice customers- This includes some o' the (orldBs best9lo$ed and most9recogni;ed

ad$ertising- #e( ad$ertising and e7citing promotions )eep Pepsi9%ola brands young- The company

manu'actures and sells so't drin) concentrate to Pepsi9 bottlers- The company also pro$ides 'ountain

be$erage products-

Pepsi also has had the good 'ortune o' ma)ing $ery (ise in$estments- Some o' the best

in$estments ha$e been in their acuiring se$eral large 'ast 'ood restaurants- They ha$e also made (ise

in$estments in snac) 'ood companies li)e 3rito .ay! (hich at present time is the largest snac)s

company in the (orld-

Probably high on the list o' strengths is pepsi be$erage line up- Pepsi has 'our so't drin)s in the

top ten be$erages in the (orld- These brands are Pepsi, 1ountain -ew, -iet Pepsi, and Caffeine 3ree

-iet Pepsi- Pepsi also has the #o-1 tea in the :nited States! 6ipton Tea- Some other strong brands are

All Sport! Slice! Tropicana! Starbuc)s! AHuafina and a license agreement (ith Ocean Spray Guices-

Pepsi %ola li)e any company has (ea)nesses- Ironically! the one strength that has been credited

'or most o' its success in the past has no( become a (ea)ness 'or Pepsi- This 'ormer strength is the

'ranchise system- The 'ranchise system in Pepsi %orporate $ie( has become a liability- Pepsi in today?s

mar)et must be able to act as one instead o' se$eral separate units-

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The 'ranchise system has become a hurdle to Pepsi because many o' these 'ranchises ha$e

become $ery strong and (ill not be dictated by Pepsi%o on ho( to handle their operations- Some o'

these 'ranchises are un(illing to support certain Pepsi products and at times produce their o(n pri$ate

label products that are in direct competition (ith Pepsi products-

Secondly the 'ranchisees are not (illing to ma)e capital e7penditures to )eep up (ith %oca9%ola

(ho is a 'irm belie$er in rein$esting into their in'rastructure /%oca %ola at present time does not operate

a 'ranchise bottling system-

As mentioned earlier Pepsi has tried to ele$ate this problem by spinning o'' their interest in 'ast

'ood restaurants but at present time are still guilty by association to many o' the large 'ountain accounts-

The 'ranchise system has also a''ected 'ountain sales due to the 'act 'ranchisees are not (illing to buy

e7pensi$e 'ountain euipment to place in accounts mainly because the pro'it margin is so lo( and could

ta)e years to recoup their in$estment- Pepsi also has a (ea)ness in the international be$erage mar)et-

:n'ortunately 'or Pepsi they (ere a “Gohnny %ome 6ately” into this arena- Pepsi has tried to

enter this mar)et by trying to do in three years (hat too) %o)e +F years to do- This area (ill ta)e years

'or Pepsi to mature simply due to %o)e?s dominance in the international mar)et and the strong ties that

%o)e has de$eloped (ith these mar)ets and their go$ernments-

Pepsi customers buy nearly 'i$e billion gallons o' so't drin)s per year- Pepsi customers buy their

products because o' taste! price! pac)aging and promotional 'actors and o' a (ide $ariety o' brands

Pepsi customers also buy their products due to the high accessibility o' Pepsi brands-

Pepsi products are distributed to many outlets- 2or e7ample! supermar)ets (here Pepsi buys large shel'

area and display areas so the customer can 'ind them easier! $i;! %on$enience stores! Restaurants! o$ie

theaters and almost and other concei$able spots-

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Pepsi has a competiti$e ad$antage o$er %o)e because o' the image it portrays- Pepsi promotes

itsel' as the choice o' the 9#ew "eneration:6 Pepsi gets this ad$antage by implementing such large

mar)eting projects li)e “Project "lobe”- This mar)eting plan! (hich Pepsi spent >4@ million dollars

o$er 'i$e years! is to introduce the ne( rich deep blue coloring o' its pac)aging- The rich deep blue

coloring represents eternal youth'ulness and openness- ar)eting plans li)e this made Pepsi one o' the

coolest brands recogni;ed among teens in the top 'i$e and the only be$erage product in this category-

Another competiti$e ad$antage that Pepsi has is in their product ountain ,e(- ountain ,e(

has gro(n a staggering @*-1M o$er the last 'i$e years- ountain ,e( has a >-4M mar)et share and has

recently become the #o-* so't drin) in America- At this current pace ountain ,e( (ill be come the

'irst non9cola to reach the 1billion gallon mar) in one year-

Pepsi also has an ad$antage as an inno$ator in their 'ield- They are the 'irst so't drin) ma)ers to

introduce a ne( one9calorie soda called Pepsi9One (ith! just appro$ed by the 2,A! Ace9.-

This ne( s(eetener is slated to be a brea)through 'or diet soda in (hich it limits the a'ter taste

associated (ith diet soda and brings a more cola taste to the product- Pepsi has al(ays been a strong

#o-5 against %o)e and ha$e become one o' the (orld?s largest %ompanies- As 'ar as mar)et share is

concerned Pepsi stands strong-

= Pepsi is one o' the most (ell )no(n brands in the (orld today a$ailable in o$er 1>F countries-

The company has an e7tremely positi$e outloo) 'or India- Outside #orth America t(o o' our largest

and 'astest gro(ing businesses are in India and %hina! (hich include more than a third o' the (orld?s

population-/Pepsi%o?s annual report! 1DDD

= This re'lects that India holds a central position in Pepsi?s corporate strategy- India is a )ey

mar)et 'or Pepsi%o! and at the same time the company has added $alue to Indian agriculture and

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industry- Pepsi%o entered India in 1DCD and is concentrating in three 'ocus areas U So't drin)

concentrate! Snac) 'oods and 0egetable and 2ood processing-

= 2aced (ith the e7isting policy 'rame(or) at the time! the company entered the Indian mar)et

through a joint $enture (ith 0oltas and Punjab Agro Industries- ith the introduction o' the

liberali;ation policies since 1DD1! Pepsi too) complete control o' its operations- The go$ernment has

appro$ed more than :SE *FF million (orth o' in$estments o' (hich o$er :SE 44F million ha$e already

'lo(n in-

= One o' Pepsico?s )ey strategies (as to de$elop a completely local management team- Pepsi has 1D

company o(ned 'actories (hile their Indian bottling partners o(n 51- The t(o ad$ertisements tagsJ Kdar

)ea age jeet hai? and Knothing o''icialabout it? immediately ring a bell9 it?s got to be Pepsi-

The ad$ertisement tag ‘dar ke aage jeet hai’ (as the 'irst e$er used in the Indian mar)et- This

pro$ed to be the best suited one 'or Pepsi and it (as a mega hit and at that moment o' time-

Pepsi in a short span o' its operations in India has 'ound a place in the hearts and minds o' the

Indian consumers- The success has primarily been due to the inno$ati$e and passionate Indian team!

(hich has been built o$er the years- Pepsi is a trendsetter managed and run by Indians! (here important

decisions are ta)en locally-

Pepsi started its operations in India in 1DCD and since then Pepsi%o has set up a 'ully integrated

operation in India $i;- anu'acturing! Research < ,e$elopment! ar)eting! ,istribution and

2ranchising9 co$ering 'ruit3$egetable processing! &7ports! and Snac) 2oods < 8e$erages- In the mean

time Pi;;a Hut and 2rito 6ay?s are the e7amples in this regard only-

Pepsi has *F bottling plants in India! out o' (hich 1> are company o(ned and 5* are o(ned by Indian

'ranchisees- One o' the major players in 'ranchisee is R.G "roup-

44


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•

The R.G group is IndiaBs leading supplier o' retailer brand %arbonated and #on9%arbonated so't

drin)s! (ith be$erage manu'acturing 'acilities in India and #epal- Its e7perience in the be$erage

industry dates bac) to the si7ties (hen it had the 'irst 'ranchise at Agra-

It has the license to supply be$erages in the territories o' estern :-P-! part o' -P-! hal' o'

Haryana! (hole o' Rajasthan! "oa! 4 districts o' aharashtra! D districts o' .arnata)a and (hole o'

#epal- The group has in total 1C bottling plants in India < #epal and is responsible 'or producing and

mar)eting **M o' Pepsi reuirement in India-

This group has brought name and 'ame to the Pepsi as in all this regions Pepsi is at the commanding

position and in the mean this group has di$ersi'ied itsel' into ice cream! suiting and shirting?s

restaurants! beer plant in auritius < edible oil plant in Sri 6an)a-

0arun 8e$erage P$t- 6td is India based and gro(ing company- The bottling plants o' R.G group are

located at "R&AT&R #OI,A /0arun 8e$erage 6td! Gaipur! .oshi! .alan! Godhpur! Al(ar


35/80

•

Pepsi %o- is the (orld leader in the 'ood chain business- It consists o' many companies amongst

(hich the prominent ones are Pepsi Cola! 3rito!lay! Pepsi food international! Pia!hut! K3C and

Ta=o bell- The group is presently into three most pro'itable businesses namely! 8e$erages Snac)s 'oods

and Restaurants-

The be$erages segment primarily mar)et it Pepsi diet! Pepsi! ountain ,e( and other brands

(orld(ide and @:P outside the :-S- mar)et- They are positioned in close competition (ith %oca %ola

inc- o' :SA-

The Snac)s 'ood di$isions manu'acture and distribute and mar)ets others snac)s (orld(ide- The

restaurant segment primarily consists o' the operations o' the (orld(ide Pi;;a9Hut! Taco bell and .2%

chains P2S! Pepsi%o?s restaurant distribution operation! supplies to %ompany o(ned and 2ranchise

restaurants in the :-S-hen %oca %ola changed its 'ormula in 1DC+! Pepsi Stepped up its competition

(ith its long time archri$al claiming $ictory in the %ola9(ars- %o)e and Pepsi e7pended their ri$alry to

tea in 1DD1 (hen Pepsi 'ormed a $enture (ith #o-1 6ipton in response to %o)e?s announced $enture

(ith #estle /#estea-“Pepsi %o is going blue”- This (as the ne( color adopted by the company to

strengthen its brand globally- Also the company is changed colors 'rom "eneration W to

"E#E/ATI0# #EJT6Although Pepsi holdings o$er the years ha$e become di$erse in such 'ields as

the Snac)s industry and Restaurants industry! this port'olio (ill discuss its core business and its highly

success'ul business o' 8e$erages- The so't drin) industry customer base is probably the (idest and

deepest base in a (orld that is 'looded (ith some many categories- According to 8e$erage ,igest the

customer base 'or so't drin)s is a (hopping D+M o' regular users in the :nited States- This represents a

large 'ield o' potential customers 'or Pepsi %ola-

Pepsi pre'ers to segment itsel' as the be$erage choice o' the 9#ew "eneration:, 9"eneration #et:

or ust as the 9Pepsi "eneration:6 These terms adopted in Pepsi?s ad$ertising campaigns are re'erring

4+


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•

to the mar)ets that mar)eters re'er to as "eneration W- The "eneration W consumer is pro'iled to be

bet(een the ages o' 1C to 5D- They ha$e high e7pectations in li'e and are $ery mobile and acti$e- They

adopt a li'estyle o' li$ing 'or today and not (orrying about long9term goals- Those Pepsi?s main

emphasis on this segment they also ha$e a 'ocus on the 15 to 1C year old mar)et- Pepsi belie$es i' they

can get this mar)et to adopt their product then they could establish a loyal customer 'or li'e-

Pepsi %ola throughout its 1FF years o' e7istence has de$eloped much strength- One o' the

strengths that ha$e de$eloped Pepsi into such a large corporation is a strong 'ranchise system- The

strong 'ranchise system (as the bac)bone o' success along (ith a great entrepreneur spirit- Pepsi?s

'ranchise system and distributors is credited to bring Pepsi 'rom a @!D>C gallons o' soda sold in 1DF4 to

nearly + billion gallons in the year o' 1DD@-

Pepsi also has the lu7ury to spend 55+ million dollars in ad$ertising a year- This enormous ad

budget allo(s Pepsi to rein'orce their products (ith reminder ad$ertising and promotions- This large

budget also allo(s Pepsi to introduce ne( products and $ery uic)ly ma)e the consumer become a(are

o' their ne( products-

Pepsi also has had the good 'ortune o' ma)ing $ery (ise in$estments- Some o' the best

in$estments ha$e been in their acuiring se$eral large 'ast 'ood restaurants- They ha$e also made (ise

in$estments in snac) 'ood companies li)e 3rito .ay! (hich at present time is the largest snac) company

in the (orld- Probably high on the list o' strengths is Pepsi?s be$erage line up-

Pepsi has 'our so't drin)s in the top ten be$erages in the (orld- These brands are Pepsi, 1ountain -ew

-iet Pepsi, and Caffeine 3ree -iet Pepsi- Some other strong brands are All Sport! Slice! Tropicana!

Starbuc)s! Aua'ina and a license agreement (ith Ocean Spray Guices-

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PC5.I#ES

“&H ,I6 AA#"& OR&”99999999P&PSI

“GOR .A GHAT.A ,HIR& S& 6A"&”999IRI#,A ORA#"&

“"OO, 2OO, TAST&S 8&TT&R ITH P&PSI”999P&PSI

“%H&&TAH 8HI PITA HAI”999O:#TAI# ,&

“6&O# .I TAA"I! A,RA. AAR .&”999IRI#,A 6&O#

“T&RI TO "AA&”999P&PSI OR6, %:P

“ HA&S I6#& .I PASS HAI”9999P&PSI %O#T&ST

“#OTHI#" O22I%A6 A8O:T IT”9999P&PSI

4@


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“&H PASS HAI 8A,I”9999P&PSI

“O& 8:86YO& 8:86”9999P&PSI

“A#,AA SA8S& %OO6”99999@:P

“&H HAI RIT& %HOI%& 8A8999P&PSI

“8A,HA 8:86 %HA##&6 HAI”9999999P&PSI

“.ISS O2 %O22&& ITH A .I%. O2 %O6A”999999P&PSI %A2&%HI#O

“P&PSI :THAAO "HAR 6& GAO”99999999P&PSI

“A#,AA SA8S& %OO6! TOO %OO6”9999999999 @:P %:RR 8OTT6&

“O:TH .A .ARO "OO, :S&”999999999999 IRI#,A 6&O#

“P&PSI T0 6A"AA .A”99999999999P&PSI

“,O TH& ,&”99999999999999 O:#TAI# ,&

“P&PSI PIO OR6, %:P GAO 5FF@”9999999999999P&PSI

“&H HAI O:#"ISTAA# &RI GAA#”9999999999999P&PSI

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PEPSI CE.E$/ITIES

• -S- ,HO#I

• ,&&PI.A PA,:.O#&

• RA#8IR .APOOR

• .ATRI#A .AI2

•

SHR&&SA#TH

• SA%HI# T,:6.AR

• AITA8H 8A%HA#

• SHAHR:.H .HA#

• PRI&T I#TA

•.AR&A .APOOR

• PRIA#.A %HOPRA

• A,#A# SAI

• SHA#& AR#&

• SAI2 A6I .HA#

• HAR8HAGA# SI#"H

• :0RAG SI#"H

• SO:RA0 "A#":6I

• 8IPASHA 8AS:

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PEPSI P/0-&CTS

Pepsi ma)es carbonated so't drin)s i-e- cola and non9cola 'la$or-

C0/E $/A#-S

P&PSI

,I&T P&PSI

P&PSI %A2&%HI#O

IRI#,A 6&O#

IRI#,A ORA#"&

S6I%&

O:#TAI# ,&

@:P

AN:A2I#A

SO,A

PACKA"ES

T(o TypesJ single ser$e and multi ser$e

>@ pac)ages si;es and types-

aterialsJ glass! plastic! cans-

Pac)ages may be returnable or non9returnable-

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C5APTE/ +

/ESE/C5

1ET50-0.0"4

*1


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•

/esear=h -esigny topic o' project is “AR.&TI#" STRAT&" O2 P&PSI at #OI,A-” So here I

need to 'ind out the beha$ior o' retailers in terms o' their perception 'or so't drin)s- To 'ull 'ill the abo$e

reuirement here I am applying concept o'

-ata Colle=tion In this study internal and e7ternal source 'or data collection had been used- In

the internal and e7ternal sources o' data collection these t(o types o' data comes into pictures-

• Primary ,ata

Secondary ,ata

Primary -ata! All the primary data 'or the purpose o' the study (ere obtained by inter$ie(ing the

retailers (ith the help o' a uestionnaire- Nuestionnaires (ere 'ramed on the basis o' product - The

uestions (ere designed in such a (ay as to elicit ma7imum in'ormation and data-

• Se=ondary -ata! Secondary data has been collected by through boo)s < (ebsites-

i6 -ATA C0..ECTI0# T00.S ! In this study the uestionnaire (as used as a data collection

tool6

Luestionnaire The term uestionnaire re'ers to a sel'9administered process (hereby the respondents

himsel'3hersel' reads the uestions and records his3her ans(ers (ithout assistance o' an inter$ie(er-

The uestionnaire has been 'ramed by using the 'ollo(ing 'i$e stepsJ

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1- Speci'ying data reuirements

5- ,etermining the type o' uestions to be as)ed-

4- ,eciding the number and seuence o' uestions-

*- - Re$ising and pre9testing the uestionnaire

+- - Preparing the preliminary dra't o' uestionnaire

The uestions used in this study 'alls under the 'ollo(ing categoriesJ

1- Rating type uestions

5- ultiple choice uestions

4- %lose ended uestions

The entire project (as di$ided into 'i$e phases and each phase had its indi$idual signi'icance and

supplemented each other- The process had to be started 'rom the grass root le$el and it (as $ery

important to understand the mar)et 'or this 2%" product! (hich is $ery 'ast in production! distribution

and consumption-

The five phases into whi=h the proe=t was divided wereJ

A. Route Riding

B. Retail Tracking

C. Corporate Tracking

D. Analysis of finding and observations

. !egregating "#$DA for %A& and !A&

The entire process (as more o' a ,escripti$e Research type and incorporated a 'ormal study o'

the speci'ic problems 'aced by most 2%" companies an e7ploring the opportunities in the untapped

mar)et- The sur$ey (as conducted on the basis o' P&PSI product pre'erence and e$aluation o' sales

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•

'orecast in the ne( and underde$eloped mar)et including the e$aluation o' the ad$ertising and

promotional measures- The data collected had to be systematically arranged! analy;ed and reported in a

'orm congenial to ta)e on the spot decisions-

The obser$ation approach (as adopted in the process by gathering the data essential and material

'or the decision9ma)ing and (ith clear objecti$e o' increasing the mar)et share o' 0arun be$erage at the

#OI,A mar)et- %ustomer pre'erences and satis'action (as also important in assessing the mar)et share

but that (as $ery clear that customers generally do not ha$e loyalty to(ards the product in the 8e$erage

industry rather (hat matters the most is the product a$ailability (hich (ill be discussed later-

All the phases mentioned abo$e ha$e been discussed along (ith the obser$ations! problems! and

other dimensions (hich ha$e been encountered and e7perience in detail in the 'ollo(ing pages-

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•

SI"#I3ICA#CE 03

T5E ST&-4

*+


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•

/0&TE /I-I#"

The 8e$erage Industry or to be more speci'ic! the So't ,rin)s Industry has one o' the most acti$e

net(or) in term o' its production! supply! distribution! mar)eting! consumption and also personal

relations at the $ery second le$el o' its distribution net(or)- That is the reason (hy it is sometimes said

to be “7ery3ast 1oving Consumer "oods:6

,ue to the abo$e stated reason it becomes $ery essential to study and analy;e the mar)et o' these

products 'rom the grass root le$el- So in the So't ,rin)s %ompany as 0arun 8e$erage! route riding

becomes the 'irst and 'oremost step in any o' the acti$ities to be underta)en be it any o''icial so (e (ere

no e7ceptions-

,uring the $ery initial days (e (ere reuired to e7ercise Route Riding! the objecti$e o' (hich (as

• To understand and analy;e the mar)et in its ra( and basic 'orm

• To gain an in depth )no(ledge o' the merchandising and processing acti$ities o' the Route

Agents and understand the 8e$erage mar)et-

• To underta)e the comparati$e study o' the $arious brands and 'la$or pac)s o' all e7isting

be$erages or so't drin)s

ar)et and the mar)et share and gro(th potential o' each brand indi$idually-

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•

• To de$elop inno$ati$e ideas to enhance the distribution system

Route Riding is basically accompanying Pepsi 0ans along (ith the route agents and

understanding the (ay they conduct merchandising acti$ities right 'rom the charged $ans lea$e the

depot to the entry o' empty $ans bac) to the depot- The Route Riding phase (as 'or the initial t(inty

days in (hich (e had co$ered t(inty-

The Route Riding is a crucial phase because the actual dealing (ith the retailers and their dealing

(ith the customers can be $ery e''iciently understood through this process (hich is important at all

le$els o' decision ma)ing in the industry-

The Routes i-e-! the Pepsi 0ans (ere charged and le't the depot by @J4F in the morning!

accompanied by the Route Agent /R-A-?s- The RA?s (ere gi$en the route planners and the particulars

o' the products! 'la$ors! and uantities along (ith the billing materials- The $ans had to co$er the entire

route and the RA had to do the merchandising and sales against cash! (hich (as a signi'icant 'eature o'

this industry- The targets (ere gi$en t(ice or thrice in a (ee) that (as a challenge 'or them and a'ter

achie$ing these targets the RA?s (as a(arded (ith some special incenti$es- As there e7ists a player li)e

%oca %ola- So it had a lot to do (ith schemes! discounts and other incenti$es-

The routes (ere allocated on the basis o' indi$idual areas and the demand o' the product in that

particular area- The RA?s been responsible 'or the accomplishment o' their sales target on their routes

and (as gi$en incenti$es on achie$ing the targets- #ot only this! the RA?s also had the responsibility o'

mo$ing the 'la$ors and pac)s in proportion along (ith the proper display o' the products 'or proper

$isibility and arrangement o' products in brand order along (ith “7ISI purity:-

The RA?s had the responsibility o' setting up %onopoly 0arun 8e$erage Sales %ounters (here no

products e7cept that o' 0arunZs 8e$erage product (ould be a$ailable amongst the so't drin)s and

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•

especially o' %oca %ola- These monopoly sales counters enjoyed special bene'its in terms o' discounts

schemes! 0ISI?s /'ridges! display boards! glo( signboards! (all paintings! banners! posters and other

incenti$es-

The RA?s had to achie$e their sales target and surrender the daily sales proceeds (ith the concerned

%ustomer &7ecuti$es along (ith the route planner and billing materials and gate pass along (ith the

details o' sales on their route-

The entire acti$ities o' the RA?s (as controlled by the %ustomer &7ecuti$es! (ho also assisted

the RA?s in achie$ing their targets and (ere in charge o' the sales per'ormance in their assigned areas- A

%ustomer &7ecuti$e had nine to ten RA?s under him and (as responsible 'or their per'ormances as (ell-

He (as also concerned (ith the promotional acti$ities on his routes and handling o' policy matters in

the corporate regarding supply to industrial canteens and ca'eterias-

e as Research trainees (ere reuired to study and analy;e the acti$ities o' the RA?s and be 'amiliar

(ith the mar)et- e had been pro$ided ar)et Analysis Sheets by the ,% in (hich (e (ere

reuired to record the obser$ations o' the retail outlets on a particular route-

The obser$ations! (hich (ere reuired to be recorded in! (ereJ

• The uantity o' the cold and (arm stoc)s o' all brands and 'la$ors a$ailable at the outlet along

(ith the outlet details-

• Inuiring about the satis'action o' the retailers in terms o' sales o' 0arun 8e$erage products!

schemes! discounts! combo o''ers! and the bene'its o' promotional acti$ities

• Inuiring about the satis'action by the current distribution net(or) in conte7t to product

a$ailability o' all 'la$ors pac)s or indi$idual 'la$ors according to demand o' customers! rates

billings-

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•

• Inuiring about the beha$ior and merchandising o' RA?s in accordance (ith the companies?

regulations and record complaints against RA?s! company or products! i' any-

• Inuire about the per'ormance o' $arious brands and 'la$ors pac)s and customer?s response to

those brands or 'la$ors and also to educate the retailers about $arious schemes and incenti$es to

increase sales $olume-

• 6ast but not the least! assessment o' the e''ecti$eness o'! assessment o' the e''ecti$eness o'

promotional materials and acti$ities li)e! display boards! glo( signs! signage! (all paintings

posters! banners! rac)s! shel$es! counters! 0ISI?s! and also impact o' nation(ide ad$ertising on

brand loyalty by the customers-

The in'ormation so collected (as reuired to be 'illed in the ar)et Analysis Sheet /specimen on

the ne7t page and reported to the ,% along (ith other in'ormation in order o' their seriousness-

$6 /ETAI. 1APPI#" 03 #0I-AJ

The Retail apping is the integral part o' the project and the most crucial is ta)ing signi'icant

decisions regarding the enhancement o' the distribution net(or) in$ol$ing hea$y in$estment on account

o' increasing the routes and starting ne( routes and promotional measures on those routes to increase its

mar)et share in #OI,A- The ne( routes! e7ploring ne( mar)ets reuired the decision to be supported

(ith 'acts and 'igures (hich had to be pro$ided by the Research trainees on the basis o' the sur$ey

conducted in the mar)et and processed data thereo'-

The retail mapping had to be conducted on the basis o' the Retail Trac)ing Sheet /RTS! (hich

had been de$eloped by the ar)eting ,e$elopment %oordinator and %ustomer &7ecuti$es o' the

#OI,A unit (hich incorporated the retail outlets! their addresses! proprietor! respondent etc and ser$ed

as a $ital database 'or all mar)et since then 'or 0arun 8e$erage at #OI,A and had to be incorporated in

the project in accordance to the companies policies-

*D


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•

0be=tives of /etail 1apping

Segregating entire #OI,A 'or Strong Area Programme and ea) Area Programme i-e-, SAPand

2AP6

• Assessment o' retailer?s per'ormance-

• Assessment o' the le$el o' promotional measures reuired 'or increasing mar)et share o' 0arun

8e$erage

• %ollection o' reuired in'ormation 'or ma)ing in$estment decisions 'or the enhancement o'

e7isting routes and opportunities 'or ne( routes in e7isting mar)et as (ell as e7ploring ne(

mar)et-

• %lassi'ication o' all retail outlets at #oida into 'i$e broad categories $i;! 0n /oute, #on

Eisten=e, #on Potential, /ea=hable and #on /ea=hable under the head! Potential /etai

0utlets6

The duration 'or the completion o' the Retail mapping too) duration o' 5F days- The entire

sur$ey (as guided and directed by the %ustomer &7ecuti$e and ,aily report had to be presented to him

a'ter assessment and analysis along (ith other 'indings and obser$ations- The ,ata had to be classi'ied

in a systematic manner and presented in a prede'ined 'ormat! (hich (as 'urther re$ie(ed by the

ar)eting ,e$elopment %oordinator-

The Retail apping process incorporated o' including o' ne( outlets! (hich ha$e been omitted

or ne(ly opened! and the product a$ailability on all these outlets- The major thrust (as on segregating

the mar)et 'or &trong Area programme and eak Area Programme.

The !trong Area re'ers to the routes on (hich the sales targets are met (ithout much e''ort and ha$e

continuous demand 'or the products- These areas are per'orming to the standards and are contented (ith

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•

the le$el o' promotion schemes and other sales boosting measures- The mar)eting e''orts are nominal in

these areas because o' the surplus demand and the area o' concern is only to ensure the proper and

e''icient supply o' the products to meet the demand- In the #OI,A mar)et appro7imately *+M o' the

mar)et can be said to be strong areas and these areas include the (ell9de$eloped mar)ets as shopping

malls, movie theatres! =onventions, hotels, restaurants and bars et=- 2or these Strong areas! SAP

only aims at maintaining the per'ormance o' the product and enhancing the sales $olume- It is not the

area o' serious concern 'or the company-

On the contrary the %eak Area re'ers to those areas or routes! (hich are critically lo( in sales

and the targets! are tough to achie$e and reuire aggressi$e mar)eting support- The demand in these

areas is 'luctuating or rather 'eeble- The routes are the area o' concern 'or the company as the demand is

$ery lo( due to many reasons and the major one is the e7istence o' the player li)e %oca %ola in the

mar)et- Other reasons could be poor distribution net(or)! inadeuate a$ailability o' the products on the

outlet! inadeuate promotional measures and mar)eting support! unde$eloped mar)et as that o' the

interiors etc-

These (ea) areas had to be identi'ied and the cause o' their in'erior per'ormance had to be

traced through the Retail apping and the company had to be pro$ided (ith the 'acts and 'igures to ta)e

legitimate measure on the basis o' the 'indings o' the de'icient per'ormance o' the product in these areas-

This in$ol$ed the aggressi$e mar)eting strategy and hea$y in$estment decisions to strengthen these

mar)ets- 2or this purpose the classi'ication o' the outlets into 'i$e categories (as $ery crucial along (ith

the other 'indings and obser$ations discussed later- These 'i$e heads o' classi'ication ha$e been

discussed as under-

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•

0# /0&TE

It re'ers to the retail outlets! (hich are co$ered by the Route Agents and $isited daily 'or sales

and merchandising- The outlet is $isited daily and acti$ely in$ol$ed in the sales o' all brands and

'la$or pac)s o' 0arun 8e$erage 6td-

#0# EJISTE#CE

It re'ers to the outlets (hich (ere merchandising the product are no more in e7istence! i-e-!

they ha$e di$ersi'ied their business acti$ity or ha$e closed-

#0# P0TE#TIA.

It re'ers to those outlets! (hich are in e7istence but ha$e $ery lo( potential in terms o' sales or

are not )eenly interested in merchandising the products o' so't drin)-

A care'ul assessment had to be done in case o' #on Potential outlets! as they (ould turn to be

potential in near 'uture- It (as also the area o' operation o' project to moti$ate these #on

Potential outlets to underta)e the merchandising o' 0arun 8e$erage 6td-

P0TE#TIA. 0&T.ETS

It re'ers to those outlets! (hich ha$e the potential 'or the merchandising o' 0arun

8e$erage and ha$e the reuired in$estment capabilities and can be the pro'itable Point O'

Purchase o' P&PSI by the customers- There (ere cases in case o' these potential outlets!

(hich (ere already merchandising P&PSI! and those! (hich did not! dealt (ith be$erage

products- The possibilities o' setting monopoly counter (ere $ery 'air at these outlets and

(ere gi$en special attention- The Potential outlets had to be 'urther classi'ied in t(o heads as

belo(J

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/EAC5A$.E P0TE#TIA. 0&T.ETS

It re'ers to those Potential outlet (hich are reachable i-e-! the products can be made

a$ailable (ith the P&PSI $ans- The reach ability decision had to be ta)en in conte7t to the

accessibility o' the $ans at these outlets-

o #0# /EAC5A$.E P0TE#TIA. 0&T.ETS

It re'ers to those Potential outlets (hich are not accessible by the P&PSI $ans- These

outlets had to be considered because the sales $olume can be increased at these outlets

and so alternati$e method o' distribution and promotional acti$ities ha$e to be e$aluated

and (or)ed upon-

C0/P0/ATE 1APPI#"J

#OI,A being an entirely industrial city had huge potential 'or the sales o' 0arun 8e$erage in

corporate as these concerns had 'actories! o''ices and canteens and the o''icials and (or)ers base (as

$ery strong- The process o' Retail apping (as 'ollo(ed by the %orporate apping! (hich

incorporated o' tracing o' the organi;ations and assessing the mar)et 'or 0arun 8e$erage in these areas-

Apart 'rom these the database had to be updated to turn the non9potential mar)et in the corporate into

pro'itable liaisons 'or the increment o' sales $olume-

T5E 0$@ECTI7ES 03 C0/P0/ATE 1APPI#" 2E/E

Trace the organi;ations (ith and (ithout canteens and ca'eterias and estimate the mar)et

'or 0arun 8e$erage-

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&stimate the brand pre'erence o' P&PSI and %O.& in the corporate and the reasons

thereo'-

To re$ie( the product per'ormance and satis'action along (ith the e7pectations o' the

customers in corporate including P&PSI ,ispenser &uipments-

To assess the product a$ailability and demand o' the product /Tra''ic in these

organi;ations as (ell as (hen the product has the optimum consumption e-g- daily

delegations! meetings! parties! or other occasions and the customers i-e-! (hether the o''icials

or (or)ers or both-

To ensure e''icient supply and record any complaints or grie$ances thereo'-

To assess the promotional measures being adopted by %oca %ola 'or tapping these

mar)ets and locates the (ea) points in corporate ha$ing %oca %ola counters to con$ert them

into pro'itable opportunities-

The %orporate apping (as the supplementary programme in the project to boost the sales

per'ormance o' 0arun 8e$erage 6td at #OI,A and capture the mar)et share o' its nearest competitor

The analysis and 'indings (ere recorded on the 'ormat pro$ide by the company accompanied by the list

o' 'indings and obser$ations in order or their pre'erence and seriousness along (ith all the rele$ant

details about the organi;ation- The matters (ere discussed and analy;ed care'ully by the ,%-

The corporate matters had to be gi$en a special care as these had huge potential 'or the product-

The specimen copy o' the %orporate apping 'ormat is attached 'or re'erence- The 'indings and

obser$ations ha$e been discussed in the coming pages-

-6 A#A.4SIS 03 3I#-I#"S A#-0$SE/7ATI0#S

The main objecti$e o' the company is to increase the brand pre'erence and mar)et share so any

in'ormation material 'orm this point o' $ie( had to be ta)e into account along (ith the 'ormats pro$ided

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by the company 'or prede'ined in'ormation recording and analysis o' those recordings and present the

in'ormation in an organi;e and systematic manner in a condensed 'orm re'lecting the actual position o'

the mar)et-

The in'ormation had to be recorded in the 'ormat along (ith the rele$ant in'ormation as per the

objecti$es o' the research and an analysis o' that in'ormation had to be made and present them in an

understandable 'ormat so that immediate in'erences can be dra(n- "enerally those in'ormation had to be

presented in percentages and the other 'indings and obser$ations had to be e$aluated and a list o'

'indings had to be arranged in order o' their seriousness and areas o' serious concern along (ith the

outlet details-

A'ter the analysis sheets and 'ormats ha$e been surrendered to the %-&?s a'ter analysis by the

trainees it (as 'urther analy;ed and e$aluate by him and a brie' analysis (as made each day o' the daily

report- The %&?s 'urther 'or(arded these reports a'ter retaining the re'erence copy! to ,% 'or 'urther

re$ie( and re'erence-

E6 SE"/E"ATI0# 03 #0I-A 30/SAP A#- 2AP

As discussed earlier that the major objecti$e o' the Retail apping o' #OI,A (as to segregate

the mar)et 'or P&PSI 'or the Strong Area Programme and the ea) Area programme- These

Programmes ha$e been discussed under the Retail apping Head- The ,ata and 'act collected by the

sur$ey had to be analy;ed and presented in a systematic 'orm in order to dra( meaning'ul in'erences-

The 'inding o' the Route Riding and the Sur$ey conducted during the Retail apping and the

%orporate apping (ere combined together and analy;ed together to reach a 'inal report ie! the

R&TAI6 APPI#" S:AR or TH& %O#,S&, ,RA2T R&PORT! (hich ga$e the entire

picture o' the actual position i' 0arun 8e$erage at #OI,A- The report so prepared (as on the basis o'

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the Retail Trac)ing Sheet and the other supplementary 'inding and obser$ations (ere considered to

reach a consensus o' declaring the route as a (ea) area or a strong area-

The reports (ere analy;ed thoroughly by the %ustomer &7ecuti$es and a meeting (as held 'or

the assessment o' the routes and the reasons o' un'a$orable per'ormance in the (ea) areas and ho( to

impro$e the sales on those routes- The discussion comprised o' the 'urther in$estments 'or the

enhancement and e7tension o' the routes and the le$el o' promotional measures reuired in these areas-

The per'ormance o' %oca %ola (as also re$ie(ed simultaneously and a comparati$e study (as made to

assess the per'ormance and gro(th in the industry- These data and 'igures (ere compared (ith that o'

the last year and a gro(th percentage (as reached (hich also ser$ed as a basis o' declaring an area as a

ea) Area-

As already mentioned P'P is a (F%C) so the mar)eting strategies are going to be $ery

dynamic in nature- The %ustomer &7ecuti$es had to 'ormulae day to day strategies and these (ere

communicated to RA?s in the morning (hen they (ere going to lea$e the depot and this interaction

among R-A- and %-&- (as to be )no(n as "ate

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C5APTE/ ;

3I#-I#"S B

A#A.4SIS

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S20T A#A.4SIS

ST/E#"T5S !

o Strong 8rand name

o Pepsi has a broader product line and outstanding reputation

o "reat brands !strong distribution !inno$ati$e capabilities

o High demand o' the product

o #umber one ma)er o' snac)s ! such as corn chips < potato chips

o ide and e''ecti$e distribution net(or) and (ell9built mar)et

o Highly educated and (ell e7perienced Top anagement

2EAK#ESS !

o Purity and uality o' the products are estimated manually

o Promotional acti$ities in the rural mar)et are not up to the mar) as compared to the urban mar)et

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o Rude beha$ior o' the salesman

o ore emphasis is gi$en on the big dealers-

o P&PSI has only one cola 'la$our (here as its competitor has %o)e and Thumps9:p-

o #ot all Pepsi%o products bear the company name

OPP:RT:#ITI&SJ 9

o It should gi$e more incenti$es to the dealers in the ne( areas! (here there is a huge mar)et

potential-

o There are increasing trend to(ard healthy 'oods-

o ore lucrati$e schemes must be launched regularly! specially during o'' seasons so as to attract

more and more customers-

o Apart 'rom sponsoring 'ilms! cric)et and music it should also sponsor the di''erent 'ashion

sho(s! ui;;es and debates in schools and colleges-

o I' impro$e the salesmanship it can attract more n more retailers-

THR&ATSJ 9

o #o( the consumers are mo$ing to(ards 'ruit juices-

o 2 < 8 industry is mature

o 8ig threat is 'rom its ri$al %o)e-

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o Si;e o' company (ill demand a $aried mar)eting program L social! cultural ! economic ! political

and go$ernmental constrains -

/ATI0 03 C0#S&1PTI0# 03 S03T -/I#KS

PE/ *)) C0#S&1E/S

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Ofte$+ ,-.Daily; 13%

Once in a week; 3%

Never; 1%

Twice in a week; 12%

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The other Statistics and 'inding ha$e been presented in the 'orm o' $arious charts on

the coming pagesJ

-E1A#- 03 S03T -/I#K

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C0#S&1TI0# 03 PEPSI $/A#-

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I#TE/P/ETATI0#

03 -ATA

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Area surveyed!#oida

MARKETING STRATEGIES Pepsi Noida.docx

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