A STUDY ON

ANALYSIS ON PEPSI RETAILOR SIGANGE OF BOARD AND ROP

With special reference to

PEARL BOTTELING PVT LTDVISAKHAPATNAM

SUBMITTED BY

M.ASHOK KUMAR(Regd.No.09521E0024)

UNDER THE GUIDANCE OF

MR.J.S.NAIDU, M.B.A

(ASSISTANT PROFESSOR)

DEPARTMENT OF MANAGEMENT STUDIES

VISWANADHA INSTITUTE OF TECHNOLOGY AND MANAGEMENT

(AFFLIATED TO JNTU, KAKINADA, ANDHRA

PRADESH)

VISAKHAPATNAM

(2009-2011)

Acknowledgement

“Acknowledgement is an art, one can write glib stanzas without meaning a word, and on the other hand one can make a simple expression of gratitude”

I take this opportunity to express my deep sense of gratitude to I express my sincere thanks to Dr.N.Viswanadham, head of the department and my respected guide Asst.Prof. J.S.Naidu for permitting me to do my project at “PEARL BOTTELING PVT LTD” Visakhapatnam and for their guidance and other staff of the organization for extending their valuable support and help in the preparation of this project report. I am also thankful to my family and friends for extending their co-operation in completion of this project report.

M.ASHOK KUMAR

CERTIFICATE

This is to certify that project report entitled

“ANALYSIS ON PEPSI RETAILER OUTLET SIGNAGE OF BOARD AND

ROP” in ”PEARL BOTTELING PVT LTD”, Visakhapatnam, ” is a

bonafied work done by Mr.ASHOK KUMAR during the academic year

2009-2011, under my supervision and guidance.

Place: Visakhapatnam.

Date:

(Signature of project guide)

Declaration

I “M.Ashok Kumar” declare that this project report entitled “Each retailer Survey and Relationship Management with retailers in Visakhapatnam original piece of work done and submitted by me towards partial fulfillment of my Post Graduate Diploma in Management, under the guidance of “Asst.Prof. J.S.Naidu garu” and PepsiCo India Ltd.

Date:

Place: (M.ASHOK KUMAR)

CONTENTS

CHAPTER-1

INTRODUCTION EXECUTIVE SUMMARY OBJECTIVE OF THE STUDY SCOPE OF PROJECT

NEED OF THE STUDY RESEARCH METHODOLOGY LIMITATIONS OF THE STUDY

CHAPTER-2

The FMCG Sector ABOUT THE SOFT DRINK ABOUT THE PEPSI SOFT DRINK MISSION VISION PEPSICO IN INDIA HEIGHLIGHTS OF PEPSICO IN INDIA ORGANIZATIONAL STRUCTURE PRODUCT PROFILE

CHAPTER-3

THEORITICAL BACKGROUND

MARKETING MIX MERCHANDISING POLICY PEPSI-THE INDIAN EXPERIENCE SWOT ANALYSIS PEST Analysis

CHAPTER-4

DATA ANALYSIS & INTERPRETAION

FINDINGS

SUGGESTIONS

KEY POINTS

CONCLUSION

QUESTIONARY

BIBLIOGRAPHY

CHAPTER-1…………………………………

o INTRODUCTION

o EXECUTIVE SUMMARY

o OBJECTIVE OF THE STUDY

o SCOPE OF PROJECT

o NEED OF THE STUDY

o RESEARCH METHODOLOGY

o LIMITATIONS OF THE STUDY

INTRODUCTION

Modern age is full of competition. Today only way of success is your continuous efforts towards the growing market needs and in satisfying them. It is the marketer job to know what the market speaks i.e. the ever changing needs of the customer through market research & adopt them fruitfully. It is must for all the companies to make policies according to the customers and the govt. Today to succeed for any organization has to target its customer needs, to create a culture in the organization i.e. market conscious & responsive to customer needs.

Soft drinks industry has become big business in India in recent years.

The soft drink business under went major change with the entry of PEPSI and re-entry of COCA-COLA in India in the late 80s when Parley with brands like Thumsup, Limca & Gold spot was a clear leader. Coca-Cola took up the product line of parley in 1993-94; today both brands are the Indians favorite soft drinks

EXECUTIVE SUMMARYI have done the project in PEPSI company which is situated in Visakhapatnam

.In my project I learned how the sales promotion activities are run in the

market and it affects sale. The study is concerned with ANALYSIS ON OUTLET

SIGNAGE OF PEPSI RETAILER

“ANALYSIS ON PEPSI RETAILER OUTLET SIGNAGE OF BOARD AND ROP”

In “Shankaramatam Road, Gurudwara, Sitampeta, Dwarakanagar” Visakhapatnam

Channels of signage are an important aspect of marketing strategy. Channels chosen for the company’s products effect every other marketing decision.

On 3rd DECEMBER I start my project under the guidance of MR.J.S.NAIDU, M.B.A (ASSISTANT PROFESSOR). I have been allocated the above four areas for survey in Visakhapatnam Number of Retailers Covered: - 140

Market Area of Visakhapatnam:-

1. Shankaramatam Road

2. Gurudwara

3. Sitampeta

4. Dwarakanagar

In the duration of 45 days I Gathered 140 samples from Pepsi retailer shops

and found out that maximum of market is acquired by PEPSI

OBJECTIVE OF THE STUDY

To know the various promotional, selling and distribution strategies adopted by PEARL BOTTLING PVT LTD

To determine the visibility of the Pepsi products and SKUs on the Dealer outlets, and check the total flavors available in the outlets

To determine the market share of Pepsi in comparison to Coke.

To find out the sales level of Pepsi in comparison to the Coke.

To find out the retailers satisfaction about the Pepsi products service and signage.

To find out the expectations of the retailers from the company.

SCOPE OF PROJECT

Detailed study of the noncarbonated soft drinks industry in India

Analysis of Pepsi’s performance against the other prevailing noncarbonated Soft drinks brands in the country.

Evaluate the performance of Agency performance and compare with the market size in the area.

Find out the problems in the area related to retailers.

NEED OF THE STUDY

In modern days, market plays a vital role in rapidly changing industrial

scenario. The marketing decline is under going reappraisal in the light of vast

goals, technological, economic and social changes being faced by the today

companies. The order to known the changes in the field of marketing it are

necessary to conduct market survey.

STUDY IS CONDUCTED CONSIDERING THE FOLLOWING ACCEPTS:

Firstly, visage is a representative of soft drink market which is highly

promoting with a lot of potential which is at to be tapped.

Secondly the behavior of the retailer is very much influenced by the

additional benefits he is getting for selling the products having.

Thirdly to understand the market condition of the soft drinks in the

present scenario and the competition level in the market.

Considered the key role of the retailer in present day market as an

attempt was made to study the impact of company’s schemes of offering

coolers to the retailers.

RESEARCH METHODOLOGY

The methodology used for collecting the data is considered to the primary for any report.

The research design of this report is exploratory i.e. formulate problem from more precise investigation. The major emphasis is on the discovering of ideas and insights. The formulate research design is characterized by great amount of flexibility. It’s contains is characterized by great amount of provided opportunity for considering different aspect of a problem undertaken in the study.

1. COLLECTING OF DATA

Data was collected on the basis of primary and secondary.

Primary Data: The data which is being collected for the first is known as primary data. In case of the above study the primary source was retailers.

Schedule Method: Dealer responses were conducted with help of a prepared schedule. Samples are taken at different location of Visakhapatnam.

Field Observation :

During training period we did extensive survey of the distribution outlets and consumer to observe the marketing operation perform by the organization

RESEARCH INSTRUMENT: - Printer questionnaire was used as the

research instrument to collect the required information. Separate

questionnaires were prepared for retailer survey and interview was taken by

the help of the questionnaire.

AREA OF SURVEY: - The survey was conducted in the different

localities of Visakhapatnam city.

SAMPLING PLAN: - SAMPLING PLAN CONSISTS OF:

a) SAMPLING UNIT: - The retailer of grocery shop, general store, betel

shop, medicine store was selected from different place of Visakhapatnam.

b) SAMPLE SIZE: - for retailer’s survey, 140 retailers were taken as

sample size.

c) SAMPLING PROCEDURE: - Cluster sampling producer was followed.

d) SAMPLING METHOD: - Data were collected by retailers. The retailer

directly conducted and interviewed at their retail counter and the different

areas for the distribution

e) TIME PERIOD OF STUDY: - The survey was conducted during 3rd

December to 17 Th January 2011.Primary data is collected from the retailers

through a structured questionnaire. It includes the first hand information from

the outlets. It can view as a survey. The questionnaire was especially designed

to find out the market share of the soft drinks and problems and weakness of

Pepsi in that particular area. The chapter deals with main analysis part of the

study and the dealer outlets covered in the study is

Shankaramatam road

Dwarakanagar

sitampeta

Gurudwara

2. SECONDARY DATA

Secondary sources include the information collected from the annual

reports, published and unpublished records of the company .various books

and journals and internet also being used for collecting the relevant data

After gathering the data from those two sources the data was analyzed,

tabulated and interpreted and finally suggestions were offered for the

betterment of the company.

RESEARCH DESIGN:-

In this research descriptive, research design was used because it finds out the

diagnostic information by asking the question like:

(a) What is it?

(b) Why is it?

(c) What it will be?

(d) What is should be?

Here it has been tired to analyze and describe about the reason behind the

customer satisfaction in Visakhapatnam market and what measures should be

applied.

SELECTION OF SAMPLES:-

When a small group is taken as the representative of the whole, the study is

taken as sampling study. The whole group from which the samples have been

drawn is technically known as universe or population and the group selected

for the study is known as sample.

In the present study the universe is the total population if the four

selected areas:

Shankaramatam road

Dwarakanagar

sitampeta

Gurudwara

As the universe is too much large so I decided to take only 140 retailers in the

Visakhapatnam market as our size for the convenience of my study. The

sample is very small as compared to the universe which may inconvenient yet

it fulfills the aim of the topic selected to be studied. As sampling method

simple random sampling design was taken. Because the samples or the

respondents were selected on the random basis without any bios.

DATA COLLECTION (TOOL AND TECHNIQUES USED)

Data are of two types i.e. Primary and Secondary. To collect primary

data from different source, along with samples, different tools and techniques

will be used.

To collect data from a universe, along with samples, different tools and

techniques are used.

The methods of primary data collection i.e. adopted that that present

study are interview method (structured), questionnaires method (both open

and closed ended) and also the observation method.

Also the secondary data were collected through newspapers, articles,

and Internet.

DATA ANALYSIS (STATISTICAL TECHNIQUE)

The Statistical techniques used in the study are:-

Pi-Chart

DATA ANALYZING TOOLS:

After gathering the data from the Primary and secondary sources the

data was analyzed, tabulated and interpretations were written down with the

help of graphs and charts, with the help of Microsoft Excel and Microsoft Word

LIMITATIONS OF THE STUDY

I have done my market survey only in areas of Shankaramatam road, sitar peat, Gurudwara, and Dwarakanagar of Visakhapatnam.

When the customers were in the outlets I had to wait patiently to get information

Some of the outlets showed the attitude towards me. I took time to get their confidence

Some retailers were extremely unhappy with the company support and after sales service

Some of them could not get total flavors due to which they nagged

Pepsi schemes given by the company were found different from place to place due to which retailer were not satisfied

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

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

The seasonal changes affect the sell.

CHAPTER-2………………………………

The FMCG Sector

ABOUT THE SOFT DRINK

ABOUT THE PEPSI SOFT DRINK

MISSION

VISION

PEPSICO IN INDIA

HEIGHLIGHTS OF PEPSICO IN INDIA

ORGANIZATIONAL STRUCTURE

PRODUCT PROFILE

INTRODUCTION

The FMCG Sector

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 m 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.

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).

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-Technical, 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 (by some estimates, the industry could double in size by 2010). 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 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 Shop rite, we are confident that the FMCG sector has a bright future.

ABOUT THE SOFT DRINK

Soft drink has been part of American lifestyle for more than 100 years. Many of today’s soft drinks are the same as the first ones enjoyed in the 1800’s. Soft drink production begins with creation of flavored syrup using a closely guarded company recipe. The syrup is mixed with purified water and then carbonated by adding carbon dioxide gas under pressure. This carbonation creates the “tingle fizz” that gives soft drinks a refreshing taste.

Now for a closer look at soft drink ingredients……………Like other foods, the ingredients that are used in making soft drink are approved and closely regulated by the US Food and Drug Administration (FDA). All the ingredients used in soft drinks are found in a variety of other foods.

WATERSoft drink production starts with a pure source of water. Regular

soft drink contains 90% water while diet soft drink contains up to 99% water Drinking water contains trace amount of various elements that affect its taste. You have probably noticed that top differ in carious regions of the county. Bottler use sophisticate filtering and other treatment equipments to remove any residual impurities and to standardize the water used to make soft drinks. That’s why your favorite soft drink tastes the name in New York as it dies in India.

CARBON DIOXIDEA colorless and odorless gas, carbon dioxide is the essential

characterizing ingredient in all “carbonated” beverages. It is given off when we breathe and is used by the plants to product oxygen. When dissolved in water, carbon dioxide imparts taste. For that reason natural sources of carbonated. Of effervescent, mineral water were once highly prized. These rare mineral water were once also believed to have beneficial medicinal properties. Efforts to make and sell “artificial effervescent mineral water” underway Europe and US by 1800. It was the innovative step of adding flavors to these popular “soda water” that gave birth to the soft drink beverages we enjoy today. In these days of soft drink manufacturing, carbon dioxide was made from sodium salts. This is why carbonated beverages were called, sodas or “soda water”.

Today bottlers buy pure carbon dioxide as a compressed gas in the high-pressure cylinders. Carbon dioxide gas is absorbed into flavored soft drink in a carbonator machine just before the container is

sealed. While under pressure and chilled, soft drink may absorb up to four times the beverage volume of carbon dioxide.

FLAVORS One of the most important ingredients in the soft drinks is flavoring. Most soft drink bottles mix many individual flavors to create distinctive tastes. Natural

Flavors in the soft drink come from spices, natural extracts and oils. Fruit –flavored soft drink such as orange and lemon-lime often contains natural fruit extracts. Other flavors such as root beer and ginger are contain flavoring made from herbs and spices.

There are also some artificial or man made flavoring used in soft drinks. Nature does not produce enough of some flavors to satisfy world demand. Also some flavors are limited geographically and seasonally.

COLORS Many people do not realize important color is to taste perception.

Color affects our psychological impression of food. If you don’t believe it. Try eating a familiar food in the dark. The color used in the food and beverages comes both from natural and synthetic sources.

CAFFEINE Caffeine is substance that occurs naturally in more than 60 plants

including coffee beans, tealeaves, kola nuts and cocoa beans. In some cases, small amounts of caffeine are added to soft drinks as a part of the flavor profile. The amount of caffeine in soft drinks is only a fraction of that found in an equal amount of coffee or tea.

Caffeine has a classic bitter taste that enhances other flavors. It has been part of almost every cola and pepper type beverage since they were first formulated more than 100 years ago and has been enjoyed in coffee, tea and chocolate beverages for centuries.

Even though some people feel the effects of caffeine are harmful, scientific research has refused these claims. The ling history of caffeine’s use confirms that it is safe when consumed in moderation. For people who wish to restrict their caffeine intake, many caffeine free soft drinks are available.

ACIDULANTS

Similar to fruit juices and many other food products, most drinks are slightly acidic. Acidulates add a pleasant tartness to soft drinks for one or two common food acidulates (phosphoric acid and citric acid) occasionally; other acidulates such as malice acid is also used.

PRESERVATIVE Soft drinks do not normally get spoiled because of their acidity and

carbonation. However, storage conditions and storage tome can sometimes impact taste and flavor.

For this reason some vs. contains small amounts of preservatives that are commonly used in many foods.

POTASSIUM

Potassium is another essential nutrients found in many natural and man made food ingredient like sodium, potassium exists naturally in drinking water and therefore, in soft drinks. Small amount of potassium are also found in some of the flavoring agents and other ingredients used in soft drinks.

SODIUM Because the name “soda pop” and “soda water” were associated

with early soft drinks. Many people falsely believe that carbonated beverages contains significant amount of sodium. That is true.

Sodium, the name form of various salts, is present in many natural and man made compounds. It is an essential nutrient responsible for regulating and transferring body fluids. As well as other important body functions. Although an adequate daily intake of sodium is necessary for good health, excessive consumption has been to high blood pressure in some people.

SWEETENERS Non-diet soft drinks

Most regular (non-diet) soft drinks are sweetened with either sucrose or high fructose corn syrup, (HFCS). A mixture of these sweeteners many also be used. Sucrose, the familiar sweetener in your sugar bowl, cines firm sugarcane or sugar beets.

SOFT DRINKS CAN BE MADE BY FOLLOWING STEPS Process flow d

During my visit to Pearl bottling pvt.Ltd Visakhapatnam, I saw

1. Water treatment plant, where water is purified.2. Bottle washing plant, where used glass bottles are washed3. Syrup room, where syrup is prepared from sugar.4. Bottle filling plant, where bottles are filled with the final product.5. Acid room, where custic soda is kept, which is used for cleaning the equipments and pipelines after every batch of production.6. Yard for keeping empty bottles and ware houses for storing the filled bottles.

1START WITH PURE WATER!

Soft drinks begin with purified water (much clearer than the tap water you drink at home). The soft drink manufacturer filters tap water through fine, clean sand and gravel to get rid of any undisclosed impurities that may pass through the finished drink and ensures that the water does not contain any unwanted particles.

2ADD THE FLAVOUR

Once the water is purified, flavorings are added. These are prepared from natural and nature identical sources and are added to a mixture of sugar and purified water to make syrup. This forms the soft drink base.

3NEXT STEP, ADD THE BUBBLES

The purified water and syrup base are then blended together to form a 'still' drink and then mixed with carbon dioxide gas (CO2) in a machine called a carbonator.

4FILLING THE BOTTLES

After the drink has been carbonated, it is transferred under pressure to the filling machine. Here, the bottles or cans are filled and are then passed by conveyor belt to the sealing machine.

5THE FINAL STAGE

The sealed bottles and cans are still quite cold at this stage, and if packed at this temperature, moisture which forms on the container because of condensation would cause the cartons to become wet and less manageable. To prevent this, the bottles and cans are passed through a hot water spray to bring them up to 'room' temperature.

6LABELS & PACKAGING

Most soft drink bottles have labels applied by a labeling machine. There are still some bottles, mostly returnable, which have the label information printed directly on to the glass. Cans also have the label printed on them, before they arrive at the soft drink manufacturing plant.

ABOUT THE PEPSI SOFT DRINK

Pepsi is a soft drink produced and manufactured by PepsiCo. It is sold in

many places such as retail stores, restaurants, schools, cinemas and from

vending machines. The drink was first made in the 1880s by pharmacist

Caleb Bradham in New Bern, North Carolina. The brand was trademarked

on June 16, 1903. There have been many Pepsi variants produced over the

years since 1898.

In October 2008, Pepsi announced they would be redesigning its logo and

re-branding many of its products by early 2009.Countries such as Australia

and Incontinent to use the old design on all packaging.

PepsiCo entered India in 1989 and has grown to become one of the

country’s leading food and beverage companies. One of the largest

multinational investors in the country, PepsiCo has established a business

which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S.$1 billion since

the company was established in the country. PepsiCo provides direct and

indirect employment to 150,000 people including suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats to

healthy eats that deliver joy as well as nutrition and always, good taste.

PepsiCo India’s expansive portfolio includes iconic refreshment beverages

Pepsi, 7 UP, Miranda and Mountain Dew,

in addition to low calorie options such as Diet Pepsi, hydrating and

nutritional beverages such as Aquafina drinking water, isotonic sports

drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks –

Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lahar

Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of

brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty

snack market and all Frito Lay products are free of trans-fat and MSG. It

manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chips

and traditional snacks under the Kurkure and Lahar brands. The company’s

high fiber breakfast cereal, Quaker Oats, and low fat and roasted snack

options enhance the healthful choices available to consumers. Frito Lay’s

core products, Lay’s, Kurkure, Uncle Chips and Cheetos are cooked in Rice

Bran Oil to significantly reduce saturated fats and all of its products contain

voluntary nutritional labeling on their packets.

The group has built an expansive beverage and foods business. To support

its operations, PepsiCo has 43 bottling plants in India, of which 15 are

company owned and 28 are franchisee owned. In addition to this, PepsiCo’s

Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is

based on its sustainability vision of making tomorrow better than today.

PepsiCo’s commitment to living by this vision every day is visible in its

contribution to the country, consumers and farmer

MISSION STATEMENT:

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

Type Public ( NYSE :   PEP )

Founded 1965

Headquarters New York , USA

Key   people Indra Nooyi , Chairwoman,

President & CEO

Industry Food and beverage

Products :

Pepsi

Tropicana Products

Gatorade

Lay's

Doritos

Frappuccino (for Starbucks )

Mountain Dew

Operating income $6.44 billion USD ( 2006 )

Net income $5.64 billion USD ( 2006 )

profit margin 16.06%

Employees 153,000(2005)

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 Pepsi 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.

Bradham'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.

1936 - Pepsi grants 94 new U.S. franchises and year-end profits reach

$2,100,000.

1941 - The New York Stock Exchange trades Pepsi's stock for the first

time.  In support of the war effort, Pepsi's

bottle crown colors change to red, white,

and blue. 

 

1943 - Pepsi's theme line becomes "Bigger

Drink, Better Taste."

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

midtown Manhattan.

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.

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.

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."

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

unveiling of the Generation Next campaign. Generation Next is about

everything that is young and fresh; a celebration of the creative spirit. It is

about the kind of attitude that challenges the norm with

new ideas, at every step of the way.

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!

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

Volta’s India Limited. This joint venture marketed and sold Lahar 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 linden, DDT,

marathon 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, Miranda, 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.

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 Case’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.

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 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 Greenfield 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

ORGANIZATIONAL STRUCTURE

DIRECTOR

CEO PSRMERCHANDISER

MD

HR HOSTDM MDM BDMMECE

TDM- Treteric development manager.TDM- Treteric development manager.

MDM-Marketing development managerMDM-Marketing development manager

BDM- Business development managerBDM- Business development manager

ADC- Account development co- coordinators ADC- Account development co- coordinators

CE - Chief executiveCE - Chief executive

ME- Merchandising executiveME- Merchandising executive

PSR- Presales representativePSR- Presales representative

RA- Route agentRA- Route agent

MDC- Marketing development co-coordinator MDC- Marketing development co-coordinator

MFM- Merchandising friezing managerMFM- Merchandising friezing manager

LOGOS OF THE COMPANY

PRODUCT PROFILE

PEPSI

Crystal Pepsi

Pepsi Blue

Pepsi Gold

Pepsi ONE

Pepsi Max

Pepsi Diet

Pepsi Lime

MIRINDA

Miranda Sorbet

Miranda Orange

MOUNTAIN DEW

7 UP

SLICE

TROPICANA

AQUAFINA

LEHAR SODA Lahar Soda

This is a soda drink. It has no color and no flavors. It is generally used with

alcohol and used by adults.

7 UP

Type Lemon-lime soda

ManufacturerCadburys (U.S.),

PepsiCo (elsewhere)

Country of

Origin United States

Introduced 1929

Variants dell, 7 Up Plus

Related

productsDr Pepper, Sprite

Miranda

Mirinda is a brand of soft drink available in fruit varieties including

orange, grapefruit, apple, strawberry, pineapple, banana, and grape

flavors. It is part of a beverage area often referred to as the flavor

segment, comprising carbonated and non-carbonated fruit-flavored

beverages. The orange flavor of Mirinda represents the majority of

Mirinda sales worldwide.

Mountain Dew

Type Citrus soft drink

Manufacturer PepsiCo, Inc.

Country of origin  United States

Introduced 1964 (nation-wide)

Variants

Diet Mountain Dew

Caffeine Free Diet

Mountain Dew

Caffeine Free Mountain

Dew

Mountain Dew Code Red

Slice

Type Flavored soft drink

Manufacturer PepsiCo, Inc.

Country of

originUSA

Introduced 1984

Related

products

Sierra Mist, Sprite, Fantail,

Teem

Aquafina

Type Water Beverage

Manufacturer PepsiCo, Inc.

Country of origin  United States

Introduced 1994

Products

Quantity

New MRP Trade Price

Pepsi 200ml 8 168

Pepsi 300ml 10 214.00

Pepsi 600ml 20 454.00

Pepsi 2L 55 459.00

Pepsi(CAN) 250ml 15 330.00

Pepsi (DIET) 330ml 25 564.00

7up 200ml 8 168.00

7up 300ml 10 214.00

7up 600ml 20 454.00

7up 2 L 55 459.00

7up (can) 250ml 15 330.00

Mirinda 200ml 8 168.00

Mirinda 300ml 10 214.00

Mirinda 600ml 20 454.00

Mirinda 2 L 55 459.00

Mirinda

(CAN)

250ml 15 330.00

Mountain

Dew

200ml 8 168.00

Mountain

Dew

600ml 20 454.00

Mountain

Dew

2 L 55 459.00

PRICE

SliceSlice 500ml500ml 2222 498.00498.00

SliceSlice 1.2 L1.2 L 4848 532.00532.00

Slice(tetra Slice(tetra

pack)pack)

200ml200ml 1212 285.00285.00

SodaSoda 300ml300ml 55 108.00108.00

SodaSoda 600ml600ml 1212 264.00264.00

AquafinaAquafina 1515 144.00144.00

TropicanaTropicana 200ml200ml 1515 391.00391.00

TropicanaTropicana 1l1l 7070 735.00735.00

Slogans

1939: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 1958: "Be Sociable, Have a Pepsi" 1961: "Now It's Pepsi for Those Who Think Young" 1963: "Come Alive, You're in the Pepsi Generation". 1967: "(Taste that beats the others cold) Pepsi Pours It On". 1969: "You've Got a Lot to Live, Pepsi's Got a Lot to Give". 1973: "Join the Pepsi people (feeling free)". 1975: "Have a Pepsi day". 1979: "Catch that Pepsi spirit". David Lucas composer 1981: "Pepsi's got your taste for life". 1983: "Pepsi's Now!" 1984: "The Choice of a New Generation". 1986: "We've Got The Taste" (Commercial with Tina Turner) 1991: "Gotta Have It." 1995: "Nothing Else is a Pepsi". 1997: "Generation Next". 1999: "Ask for More"/"The Joy of Pepsi-Cola". 2003: "It's the Cola"/"Dare for More". 2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez & Beyoncé Knowles) 2007: "More Happy"/"Taste the one that's forever young".

This chapter has touched through some of the concept of market research,

consumer behavior and channel of distribution in relation to PEPSI. This

chapter will tell you how the project has been gone through to achieve its

ultimate aim ‘increased sales’.

CHAPTER-3………………………………..

THEORITICAL BACKGROUND

o MARKETING MIX

o MERCHANDISING POLICY

o PEPSI-THE INDIAN EXPERIENCE

o SWOT ANALYSIS

o PEST ANALYSIS

Introduction

Marketing needs a framework that begins and ends with the

customer; marketing tools by themselves do not achieve

marketing objectives. There is an intermediate step between the

deployment of marketing tools and achievements of marketing

objectives. A marketing network consists of the company and its

supporting stakeholders (customers, suppliers, distributors,

retailers, ad-agencies and other) the operating principle is

simple: build an effective network of relationships with key

stakeholders and profit will follow.

A set of marketing tools, the firm uses to pursue its marketing

objectives are called marketing-mix. These tools can be

classified into four groups which are called the 4 P’s of

marketing.

THE MARKETING MIX-4 P’S WITH SPECIAL REFERENCE TO PEPSI:

Product:

A business needs to consider the products that it produces and the stage of the product life cycle that a product is at. Marketing strategies will vary according to the type of product and its stage in the life cycle.

In case of Pepsi, in the rural markets, the 300ml bottle and now days the new small or commonly known as the “chota Pepsi” is very much popular. The Pepsi Co. is even thinking of introducing their new Pepsi-Aha, but presently they are concentrating more on the normal Pepsi as the rural market is a niche market. Pepsi is even successful in introducing the big 1-1.5 liter PET bottles in the rural markets. These big bottles are very popular during big festivals and marriages.

Price:

PRICING POLICIES

The company first has to decide what it wants to accomplish with its particular

product offer. If the company has selected its target market and market

positioning carefully, then its marketing mix strategy-including price – will be

fairly straight forward.

DETERMINING DEMAND

Each price that the company might charge will lead to a different level of demand

and will therefore have a different impact on its marketing objectives. The

relation between alternative prices that might be charged in the current time

period. In the normal case, demand and price are inversely related. That is, the

higher the price, the lower the demand, and the lower the price, the higher the

demand.

Demands set a selling on the price that the company can charge for its product.

And company costs set the floor. The company wants to charge a price that

covers its cost of producing, distributing, and selling the product, including a fair

return of its effort and risk.

SELECTING A PRICING METHOD

Given the three C’s the customer’s demand schedules, the cost function and

competitors the company is now ready to select a price. Within the range of

possible determined by market demand and costs, competitors costs, prices, and

possible price reaction help the firm establish where to set its price. The PepsiCo

Pvt. Ltd needs to benchmark its costs against its competitor’s costs to learn

whether it is a operating at a cost advantage or disadvantage. The company also

needs to learn the price and quality of competitor’s offers. The firm sends out

comparison shoppers to price and assess competitor’s offers, acquire competitor’s

price lists, buy competitor’s equipments and take it apart, and ask buyers how

they perceive the price and quality of each competitor’s offer.

Once the company is aware of competitor’s prices and offers, it uses them as an

orienting point for its own pricing. If the firm’s offer is similar to a major

competitors offer, then the firm will have to price close to the competitor’s or

lose sales. If the firm’s is inferior, the firm will not be able to charge more than

the competitors. If the firms offer is superior, the firm can charge more than the

competitors.

The firm must be aware, however, that competitor’s might change their prices in

response to the firm’s price. In other words we can say that the Lumbini

Beverages adopt the going rate pricing method. In going rate pricing, the firm

pays les attention to its own costs or demand and bases its price largely on

competitor’s prices.

Place

The entire marketing in this case is divided into three parts:-

Route marketing

Home marketing

At work marketing

ROUTE MARKETING:-

Outlets coming under this market cater to the needs of those customers who are

engaged in shopping, eating out in restaurants, going to and from work, in

amusement centre etc. in simpler words this marketing is what we call the bazaar.

HOME MARKETING:-

Outlets coming under this market cater to the needs of those customers who buy

soft drink predominantly for home consumption either by the glass bottles, pet

bottles.

The shops targeted under this category are those which are located inside

residential complex or are located nearer to the residential areas. These shops

predominantly sale pet bottles.

AT WORK MARKETING:-

Outlets coming under this market cater to the needs lf those customers who are

working in offices, factories etc. i.e. the outlets targeted are the canteens mainly.

Promotion

SALES PROMOTIONAL ACTIVITY

Sales promotion a very ingredients in the marketing companies consists of

a collection of incentive tools, mostly short term, designed to stimulate

quicker or grater purchase of particular product or services by customers.

Promotional activities play a key role in the entire marketing effort being

carried out by LUMBINI BEVERAGA which is in sync with those of PEPSI CO.

INDIA. These promotional activities generate more sales as well as create a

good image of the Product in the mind of customers. .

Promotion tools used by PEPSI company of its marketing activities are:

1. Point of sale display

2. Incentive to Retailers

3. Sales promotion through sponsoring special events.

4. Sales promotion through various schemes.

5. Advertising.

6. Scratch coupon card

7. Free gift items.

Point of sale display: -

As it is mentioned that soft drink are kept in FMCG category so it is very

necessary to make a proper display of its product. General consumer

demands the thing which he looks first. Because in FMCG product

consumer is not too much concern about product. So outlet owners are

suggested to keep bottles in stand and keep it out of the shop. So that

customers have an eye contact with product as he enters the shop. This is

particularly true for those brands which have very low customer loyalty soft

drink is one such product in which most of the time buying decision is made

at the spur rand which is readily available and catches the customer. For

this reason PepsiCo invest heavily in this categories by supplying the shop

owners with stands so that they can keep the bottles outside on those

stands so that customer have an eye contact with them as he/she is

entering the shop. Also PEPSI supply the shop with visi-coolers with a glass

front so that cooled bottles can be seen by the customers for making the

decision on the flavor that person is going to buy. Apart from these PepsiCo

takes keen in the other type strategies like painting the walls of the shops

with the PEPSI logo and the shop name. This increases the visibility of the

brand among the customer when he/she enter the shop.

Incentive to Retailers:-

Another method of sales promotion is to give incentive scheme to retailer,

under this promotional method retailers are given a target regarding the

minimum no. of crates that they have to sale in that period, on achieving

the target the dealer is given attractive prizes which ranges from free

bottles, gift items.

SPONSORING SPECIAL EVENT:-

PEPSI is sponsoring various events which include cricket

matches, local events like quiz competitors, Parties, local sports, Orchestra,

cultural programmed etc.

Advertising Policy:-

Advertising is considered the most important tool to increase sales. PEPSI

uses various methods to advertise its product; advertising is made through

TV channels, Radio, magazines, Newspaper, Banners etc.

Scratch Coupon Card:-

Scratch card is another type of tool which helps to increase sales. In

scratch card the name of the gift item is printed and a layer is covered

that prize name. Outlet owner are given that card and after scratching

whatever they get company distribute it among them.

PEPSI has distributed scratch card by which outlets owners are facilitated

by torch, 600ml pet, 300ml liquid etc.

“MERCHANDISING POLICY”

In today’s fast moving industry and highly competitive market,

only those products are likely to be purchased which are capable of hitting

the impulse of the consumers. The products appeal should be penetrate of

consumers mind. The concerned product should induce to consumers.

PEPSI believes that “JHO DIKHTA HAI WO BIKTA HAI” i.e. any product

which is visible is bound to be sold.

Method of merchandising

The following methods are used to increase the visibility of

product.

1. Visi-cooler placement

2. Glow Signboard

3. Paintings

4. Crate Stacking

5. Umbrella

6. Banners

Besides the advertisement being carried out by the Pepsi Food Pvt. Ltd.

the PepsiCo uses many media message, copy etc. when required by them

but one single factor which is very important is that the main head line or

slogan must remain the same as used by each Pepsi Food (Soft drink)

company on national level.

The main slogan being used by Pepsi food (soft drink) all over India for its

cola product has been. The choice of a new generation. But past two years,

it was dropped and introduced new slogan, “Yahi Hai Right Choice

Baby” and then “Yeh Dil Mange More”. These characters have been

used to advertisement from 1991 to 2003.

1. 1991 Remo Fernandis and Juhi Chawla

2. 1992 Kapil Dev with Growl Buddhist

3. 1993 Amir Khan

4. 1994 Md. Azharuddin, Sachin Tendulkar and Kambli

5. 1995 Akshay Kumar.

6. 1996 Md. Azharuddin and Sachin Tendulkar

7. 1997 Rahul Dravid

8. 1998 Shahrukh Khan & Amitabh Bacchan

9. 1999 Govinda & Rani Mukherjee

10. 1999 Sachin Tendulkar & Shahrukh Khan

11. 2000 Ajay Jadeja, Kajol 200 ml

12. 2001 Amitabh Bachchan & Sorav Ganguly

13. 2002 Fardeen Khan, Rahul Khanna

14. 2003 Ganguli, Dravid, Harbhazan, Zahir, Kaif, Shahrukh Khan.

15. 2003 Kareena Kapoor for Pepsi 200 ml.

16. 2005 Sahrukh Khan, for Pepsi 200 ml.

17. 2006 Sahrukh Khan, Kareena Kapoor, Priyanka Chopra

18. 2007 Sahrukh Khan, Kareena Kapoor,

19. 2008 Sahrukh Khan, John Abraham

20. 2009 Mahendra Sing Dhoni Deepika padukone.

The other advertisement for its product slice is “Jab Gale Se Jayada Pet

Ho Pyasa” Pepsi is “Oye Babli Hai Babli” and Mirinda Lemon is “Jor Ka

Jhatkha Dhire Se Lage”.

PEPSI-THE INDIAN EXPERIENCE

Pepsi entered the Indian soft drink market in 1988 and began its production

in May 1990 and soon it was giving the local contenders the run for their

memory in the soft drinks market. It came out with dazzling marketing

innovation that rocket the Cola market live selling the product through

functional Pepsi outlets. Its advertisement agency was “Hindustan Thomson

Association (HTA)”.

Pepsi good is one of the largest and best foreign investments in India. Pepsi

has distributed exclusive franchises in India to bottle its products. At

present it has 40 bottling lines in the country. Pepsi owns 16 units and the

rest are owned by franchises. The two salient features of the consumers

market in India are generally prevailing, low purchasing capacity of

consumer and the fact that urban consumer responding about 30% of the

total population account for nearly 70% of the consumers of the consumer

expenditure. The government of India has considered the soft drinks

industry as non-essential. As a result of the excise duty levied by the

government on bottled-soft drink is very high.

The soft drinks industries in India has an annual sales exceeding more than

Rs. 300 crores and most of the bottling companies have been coursing well.

The exit of Coca cola from India has accelerated the growth of several

Indian companies have grown and expanded their activities by placing

more and more of their soft drinks in the market and by moving

refrigeration by supplying ICE-BOX and VISI COOLER and one fridge

to their retailers.

S trengths : attributes of the organization that is helpful to

achieving the objective.

W eaknesses : attributes of the organization that is harmful to

achieving the objective.

O pportunities : external conditions that is helpful to achieving the

objective.

T hreats : external conditions which could do damage to the

business's performance.

STRENGTH:

1) Good market penetration.

2) Motivated channel partner.

3) Well defined routes.

WEAKNESS:

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

2) Complaint handling was not up to mark.

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

covering full routes.

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

5) Interpersonal relationship with the company officials and the route agent

is not satisfactory.

OPPORTUNITY:

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

are opening , Pepsi needs to concentrate on these new outlets and can

gradually increase its sale in these area.

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

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

and cooling equipments.

THREATES:

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

penetration through price skimming and other promotional scheme.

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

the launch of Catch soft drink a product causing decrease in sale in some

areas.

PEST Analysis:

The PEST analysis examines changes in a marketplace caused by Political,

Economical, Social and Technological factors.

P: Political change, from one party to another in control- for example the

rise in private healthcare and the privatizations under Conservative

governments.

Political Analysis for PepsiCo

Non-alcoholic beverages fall within the food category under the FDA. The

government plays a role within the operation of manufacturing these

products in terms of the regulations. There are potential fines set by the

government on companies if they do not meet the standard of laws.

The following are some of the factors that could cause PepsiCo company's

actual results to differ materially from the expected results described in

their underlying company's forward statement are:-

Changes in laws and regulations, including changes in the accounting

standards, taxation requirements, and environmental laws in domestic or

foreign jurisdictions.

Changes in the non-alcoholic business environment. These include,

without limitation, competitive product and the pricing pressures and their

ability to gain or maintain share of sales in the global market as a result of

action by competitors.

Political conditions, especially in the international markets, including

civil unrest, government changes and restrictions on the ability to transfer

capital across borders.

Their ability to penetrate the developing and emerging markets, which

also depends on the economic and political conditions, and how well they

are able to acquire or form strategic business alliances with local bottlers

and make the necessary infrastructure enhancements to the production

facilities, distribution networks, sales equipment and technology.

E: Economic change, for example a recession creating increased activity

at the lower ends of the product price ranges. Rate of interest rises

depressing business and causing redundancies and lower spending level.

Economic Analysis for PepsiCo

Last year the U.S. economy was the strong and nearly every part of it was

growing and doing well. However, things changed. Most economists loosely

define a recession as the two consecutive quarters of contraction, or

negative GDP growth. On Monday 26, the government officially declared

that the U.S. has been in recession since March.

However, because of the aggressive action by the Federal Reserve and the

Congress it will be short and mild. The economy will return to the

sustained, positive growth in the first half of 2002.

Future Outlooks

The Federal Reserve is doing all that it can help the economy to recover.

They have cut the interest rate ten times in this year. The rate now lies at a

40-year low of 2.1%. Lowering the interest rates will ultimately excite

consumer demand in the economy. Companies will expand and increase

use of debt as a result of the low borrowing rate. PepsiCo can borrow

money for investing in some other product as the interest rates are low. It

can use the borrowing on the research of new products or technology. As

researching for new products would cost less the PepsiCo Company will sell

its products for less and the people will spend as they would get cheap

products from the PepsiCo.

Before the attacks on September 11, 2001, the US was starting to see

the economy recover slightly and it is only just recently that they achieved

economic levels. Consumers are now the resuming their normal habits,

going to the malls, car shopping, and eating out at restaurant. However,

many are still handling their money cautiously. They believe that with the

lower inflation still to come, consumers will recover their confidence over

the next year.

The non-alcoholic beverage industry has high sales in countries outside

the U.S. According to the Standard and Poor's Industry surveys,” For major

soft drink companies, there has been the economic improvement in the

many major international markets, such as Japan, Brazil, and Germany."

These markets will be continued to play a major role in the success and the

stable growth for a majority of the non-alcoholic beverage industry.

S: Social change involves changing attitudes and the lifestyles. The

increasing number of women going out to work, for example, led to the

need for the time-saving products for the home.

Social Analysis for PepsiCo

Many U.S. citizens are practicing healthier the lifestyles. This has

affected the non-alcoholic beverage industry in that many are switching to

the bottled water and diet colas instead of beer and other alcoholic

beverages. Also, time management has increased and is at the

approximately 43% of all households. The need for the bottled water and

other more convenient and healthy products are in important in the

average day-to-day life.

Consumers from the ages of 37yr-55yr are also increasingly concerned

with the nutrition. There is a large population of the age range known as

the baby boomers. Since many are the reaching an older age in life they

are becoming more concerned with the increasing their longevity. This will

continue to affect the non-alcoholic beverage industry by increasing

demand overall and in the healthier beverages.

T: Technological change - creates opportunities for new products and the

product improvements and of course new marketing techniques- the

Internet.

Technological Analysis for PepsiCo

Some factors that cause company's actual results to differ the materially

from the expected results are as follows:

The effectiveness of the company's advertising, marketing and

promotional programs. The new technology of the internet and television

which use special effects for advertising through media. They make some

products look attractive. This helps in the selling of the products. This

advertising makes the product attractive. This technology is being used in

the media to sell their products.

Introduction of cans and plastic bottles have increased the sales for

PepsiCo as these are easier to carry and you can bin them once they are

used.

CHAPTER-

4 ………………………………………

DATA ANALYSIS & INTERPRETAION

FINDINGS

SUGGESTIONS

KEY POINTS

CONCLUSION

QUESTIONARY

BIBLIOGRAPHY

Pepsi products range occupied area

sl.no AREA OCCUPIED

1SHANKARAMATAM

ROAD 24

2 DWARAKANAGAR 42

3 SETAMPETA 54

4 GURUDWARA 20

INTERPRETATION:-

From the above table, it can be interpreted that Shankaramatam road occupied 17%, DWARAKANAGAR occupied 30%, SETAMPETA occupied 54% and GURUDWARA occupied 14%. These descriptions belongs to total Pepsi retailers occupied in 4 area

RANGE OF PEPSI PRODUCTS

product RangePepsi 1407up 140

Miranda 140slice 140

mountain dew 60aquafina 98

Miranda lemon 70lahars soda 100

nimbooz 40

INTERPRETATION:

In my survey of 140 outlets in four areas I found Pepsi brand of products are

occupied. In that percentage Pepsi occupying 15%, 7up is occupying 15%

and Miranda is occupying 15%, slice is occupied 15% mountain dew

occupying 6%, Miranda lemon occupying 18%, lahar soda occupying 11%,

aquafina occupying 11%, nimbooz occupying 4%.

PERCENTAGE OF RETAILER SELL BOTH PEPSI AND COCA-COLA

Only Pepsi products 93Pepsi and coca-cola

products 47

INTERPRETATION:

In my survey of 140 samples in four areas I found retailers who are selling Pepsi and coke products are occupying area wise like PEPSI occupied 66% ,

Percentage of signage in four areas

Area SignageSHANKARAMATAM

ROAD 58

DWARAKANAGAR 16

SETAMPETA 27

GURUDWARA 25

INTERPRETATION:

In my survey of 140 outlets in four areas I found SHANKARAMATAM ROAD

occupied 46%. DWARAKANAGAR occupying 13%, SETAMPETA occupying 21%

GURUDWARA occupied 20%

No of Pepsi and Coke retailers

Area Number

SHANKARAMATAM ROAD 24

DWARAKANAGAR 42

SETAMPETA 54

GURUDWARA 20

No of Pepsi and Coke retailers

SHANKARAMATAM ROAD 17%

DWARAKANAGAR 30%

SETAMPETA 39%

GURUDWARA 14%

SHANKARAMATAM ROAD

DWARAKANAGAR

SETAMPETA

GURUDWARA

INTERPRETATION:

In my survey of 140 samples in four areas I found retailers who are selling Pepsi and coke products are occupying area wise like SHANKARAMATAM ROAD occupied 24%, DWARAKANAGAR occupied 42%, A SITAMPETA occupied 39% and GURUDWARA occupied 30%.

AREA WISE DAILY SALES

AREA SHANKARAMATAM

ROADDWARAKA

NAGAR

SETAMPET

AGURUDWARA

TOTAL

1-CASE 18 2 1 1

88

2-CASE 25 12 3 2 30

3-CASE 35 11 5 3 12

4-CASE 10 5 3 2 8

81%

9%

5% 5%

SHANKARAMATAM ROAD DWARAKANAGAR SETAMPETA GURUDWARA

INTERPRETATION:

In my survey of 140 samples in four areas I found retailers who are selling

Pepsi brand products are occupying area wise like SHANKARAMATAM ROAD

occupied 81%, DWARAKANAGAR occupied 9%, SETAMPETA occupied 5% and

GURUDWARA occupied 5%.

PERCENTAGE OF CASE WISE SALES

AREA TOTAL

1-CASE 88

2-CASE 30

3-CASE 12

4-CASE 8

PERCENTAGE OF CASE WISE SALES

1-CASE63%

2-CASE 22%

3-CASE9%

4-CASE6%

1-CASE

2-CASE

3-CASE

4-CASE

INTERPRETATION:

In my survey of 10 samples in four areas I found totally 140 samples. In that

selling1 case retailers are 63%, 2 case are 17%, 9% are selling three cases,

6% are selling four cases.

Percentage of rope and board

signage name occupied area

rop 17

board 19

no signage 64

INTERPRETATION:

In my survey of 140 samples of four areas I found that ROP occupied 17%,

board occupied 19%, and no signage occupied by 64%.

Brand of Rop

Brand of rop numberPepsi 167up 5

Miranda 0slice 0

mountain dew 0aquafina 0

Miranda lemon 0lahar soda 0nimbooz 0

INTERPRETATION:

In my survey of 140 samples in four areas I found Pepsi brand of ROP is

occupying 61%, 7up is occupying 21% and Miranda is occupying 13% in the

total market in average. From this we can understand that the Pepsi brand

rop is more than remaining all products of PepsiCo.

Age of Rop

Age of rop Yearsless than one yr 1

1 yr 72yr 9

3yr 24 yr 0

more than 4yr 2

AGE OF THE ROP

less than one yr5%

1 yr33%

2yr42%

3yr10%

4 yr0%

more than 4yr10%

less than one yr

1 yr

2yr

3yr

4 yr

more than 4yr

INTERPRETATION:

In my observation of 24 rop outlets in four areas I found that 5% of rop age

are less than one year, 33% of rop age are one year, 42% of rop age are

two years, 10% of rop age are three years, 0% of rop age are four years

and 10% of board age are more than four years

Brand of Board

Name of board NumberPepsi 117up 10

Miranda 0slice 2

mountain dew 0aquafina 0

Miranda lemon 0

lahar soda 0nimbooz 0

INTERPRETATION:

In my survey 140 samples in four areas I found Pepsi brand of board is

occupying 48%, 7up is occupying 43% in the total market in average. From

this we can understand that the Pepsi brand board is more than remaining all

products of PepsiCo

Type of board percentage

Type of board Numbernon lit 16front lit 5back lit 3loll lit 0

type of board percentage

front l it21%

back l it13%

lolly l it0%

non lit 66%

INTERPRETATION:

In my survey of 140 samples in four areas I found totally four types of boards

using. They are 21% of front lit, 13% of back lit, 66% of non lit, 0% lolly lit.

Age of Board

Age of board yearsless than one yr 0

1 yr 72yr 53yr 64 yr 0

more than 4yr 6

INTERPRETATION:

In my observation of 15 board outlets in four areas I found that 0% of board

age are less than one year, 29% of board age are one year, 21% of board

age are two years, 25% of board age are three years, 0% of board age are

four years and 25% of board age are more than four years.

Percentage of members ask signage of Pepsi products

Ask signage 32

didn't ask signage 11

INTERPRETATION:

In my survey of 140 samples in four areas I found 74% of persons ask for

signage and 26% of persons didn’t ask Pepsi products signage.

Percentage of people get signage

ASK SIGNAGE NUMBER

PROVIDE 55

DINT PROVIDE 20

INTERPRETATION:

In my survey of 140 samples in four areas I found 73% of persons ask for

signage and 27% of persons didn’t get Pepsi products signage.

After fixing signage growth of sales

Types Numbers

INCREASED 32

NOT INCREASED 11

after fixing signane growth of sales

INCRESED74%

NOT INCREASED

26%

INCRESED

NOT INCREASED

INTERPRETATION:

In my survey of 140 samples in four areas I found 74% of sales increased and

26% of sales not increased in after fixing Pepsi signage.

Daily sales in Pepsi products

Cases of Pepsi products Number

1-case 83

2-cases 37

3-cases 10

4-cases 2

more than 4 cases 10

Daily sales in pepsi products

one case59%

two cases26%

three cases7%

four cases1%

more thann four cases

7%

Other8%

one case

two cases

three cases

four cases

more thann four cases

INTERPRETATION:-

In my survey of 140 samples in four areas. I founded those 59 % cases of

sales in one case, 26% of cases sales in two cases. 7% sales in 3 case, 1%

sales in 4 cases, 7% sales in more than 4cases of daily sales

After fixing signage growth of sales

CASES NUMBERS

one case 23

two case 5

three cases 0

four cases 0

more than four cases 2

no change 6

After fixing signane growth of sales

one case63%

two case 14%

three cases0%

four cases0%

more than four cases

6%

no change17%

one case

two case

three cases

four cases

more than four cases

no change

INTERPRETATION:

In my survey of 140 samples in four areas. I founded that 63% sales

increased in one case, 14% sales increased in two case. 0% sales increased

in 3 case, 0% sales increased in 4 cases, 6% sales increased in more than

4cases and 17% of no change in sales

FINDINGS

The collected data which were analyzed and came out with the

following conclusion:

The numbers of PEPSI outlets is more than the numbers of competitor’s

outlets at Visakhapatnam that results in increase in sale of PEPSI

products.

In the city like Visakhapatnam, PEPSI products are reaching to every

corner where not a single bottle of PEPSI can be seen.

All the areas in Visakhapatnam, almost the retailers are satisfied with

the distribution network of the PEPSI product.

Most of the retailers want glow sign and chilling equipments, which they

are asking from long time.

In cola segment COCA-COLA is main competitor of PEPSI, in orange

segment MIRINDA is the main competitor of FANTA, in lime segment 7UP

and MOUNTAIN DEW is the main competitor of SPRITE, in juice (mango)

segment SLICE is main competitor of MAAZA.

Retailers are asking for the incentives and sales promotional schemes.

Some retailers stops selling PEPSI products because they are not

satisfied with the company, where COCA-COLA fulfill some of their

demand and got the opportunity to make exclusive counter for the soft

drinks.

The young generation of people likes most PEPSI, 7UP and M.DEW while

women, children and older people like SLICE and MIRINDA

Suggestions

An inspection officer should be recruited who perform surprise inspection of the market and find out the problems.

The vehicles of the agency should be inspected so the delivery should be maintained.

Schemes should be provided to the customers not to the whole sellers.

Accessories should be provided on the basis of sale. Check the selling of whole sellers at lower price than

agency. Agency should be more honest in providing benefits to

retailers.

Salary of sales force should be increased so they may not do fraud with retailers to earn more.

MAIN KEY POINTS

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

according to the demand a just in time.

After conducting the market survey of retailer in Ghaziabad city,

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

After analyzing the market and calculate the weightage, the result

comes out that Mountain Dew is the leading product of Pepsi-Cola.

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

Retailers have problem in display material.

Most of the place like cinema hall and educational institutions are

dominated by Pepsi-Cola.

Retailers have complaint regarding the PET, that more better quality

bottle should be used.

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

Cola) mineral water.

Retailers have a demand of some offers and free gifts.

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

Visakhapatnam city.

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

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

season.

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

product of different company depends.

CONCLUSION

1. After visiting nearly 140 outlets I found that Pepsi & its Brands is not doing a good job in the survey areas It is clear that Pepsi (58%) has lagging Coke (38%) in the soft drink market in Visakhapatnam region. If we compare it with Signage or display material than Pepsi has an edge over coke.

2. At this time it is solely depends on the retailer which brand he offers to the consumer? Although the company has been unable to satisfy the retailers. The company must take immediate steps in order to resolve its disputes with these retailers.

3. It was also found that the schemes that are brought up in the market by Pepsi & Coke after every couple of day is not making any net effect on the sale of Cola, whereas one is cannibalizing others market only.

4. It was also seen that Pepsi brand is better sold than coke. But it is Thumsup, which is making the major difference in the market.

5. The sale in age wise section, it was found that 200ml is sold in all the age groups with same frequency but 300ml is sold mostly in 16 to 45yr. of age group where as CAN is sold in hi younger generation only. Finally 2lit. Are used only for family or party purpose.

6. It was also seen that Pepsi brand is lagging the Coke especially in Muslim dominated area, which makes a major difference in the market.

BIBLIOGRAPHY

. www.pepsico.com

www.wikipedia.com

www.answer.com

www.google.com

www.indiaifoline.com

www.pepisco.com

Philip Kotler, Marketing Management

Thank you