Pepsi summer project
-
Upload
vikas-gupta -
Category
Business
-
view
2.044 -
download
0
description
Transcript of Pepsi summer project
www.GamesWala.com
Project report on Basics of Financial
Accounting
Submitted by :- Pooja Bhoria
Submitted to :- Mrs. Mehak
Preeti Dhiman
Suman Chaudhary
www.GamesWala.com
www.GamesWala.com
Class :Final Year (Diploma in Finance, Account and Auditing)
Jai Shree Ram, Dostoi am vikas gupta, age 31 years . i start a gaming website named www.GamesWala.com which has PR4 and ratings below 4 lakh.
i need here 1 help from you, as i have no money to promote my gaming site,i am running graphic shop with 1 PC (yes 1 PC :) think how i am surviving with 1 PC and a family with 2 kids :P ), I do not know much about how to promote my website, so i decided to talk with you friends to come and join my site and play all the games for free, all games are personally selected by me from thousands of games.
www.GamesWala.com
www.GamesWala.com
I am updating my website daily with lots of awesome games.You can play without register or register you id or you also can play with your facebook ID.hope you all will like my site and play free online games there, and don't forgot to tell your friends about my
www.GamesWala.com :)
C O N T E N T S
1) ACKNOWLEDGEMENT
2) CONSUMER BEHAVIOUR
3) SAMPLING
4) RECOMMENDATIONS
5) CONCLUSIONS
www.GamesWala.com
www.GamesWala.com
7) ANALYSIS
8) ISSUES IN SHAMPOO ADVERTISING
9) SCENARIO OF INDIAN SHAMPOO MARKET
Acknowledgement
www.GamesWala.com
www.GamesWala.comI “SHIKHA”take this opportunity to express my deep sense of gratitude to my Teacher “Miss Abina” for their guidance for extending their valuable support and help in the preparation of this project report. I am also thankful to my family, friends for extending their co-operation in completion of this project report.
Date:
Place: Signature
INTRODUCTION
www.GamesWala.com
www.GamesWala.comThe 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, 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
www.GamesWala.com
www.GamesWala.comwitnessed 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-Technopak, of
the total consumption expenditure, almost 40% and 8% was accounted by groceries
and personal care products respectively. Rapid urbanization, increased literacy and
rising per capita income are the key growth drivers for the sector. Around 45% of
the population in India is below 20 years of age and the proportion of the young
population is expected to increase in the next five years. Aspiration levels in this age
group have been fuelled by greater media exposure, unleashing a latent demand
with more money and a new mindset. In this backdrop, industry estimates suggest
that the industry could triple in value by 2015 (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
Shoprite, we are confident that the FMCG sector has a bright future.
Budget Measures to Promote FMCG Sector 2% education cess corporation tax, excise duties and custom duties Concessional rate of 5% custom duty on tea and coffee plantation machinery
Budget Impact
www.GamesWala.com
www.GamesWala.comThe education cess will add marginally to the tax burden of all FMCG companies The dividend distribution tax on debt funds is likely to adversely effect the other income components of companies like Britannia, Nestle and HLL The measure to abolish excise duty on dairy machinery is a positive for companies like Nestle Concessional rate for tea and coffee plantation machinery is a positive for Tata Tea, HLL, Tata Coffee and other such companies Duty reduction in food grade hexane will have a marginally positive impact on companies like Marico and HLLArea specific excise exemptions for North East, J&K, Himachal Pradesh will continue to encourage FMCG companies to relocate to these areas.
Budget over the years
Budget 2001-02 Budget 2002-03 Budget 2003-04
From 35-55% to 75% for crude edible oil
From 45-65% to 85% for refined edible oil
From 35% to 70% for copra, coconut, tea and coffee
From 25% to 55% for crude palm oil
Development allowance of tea industry raised to 40% from 20%
All food preparations based on fruits and vegetables (pickles, sauces, ketchup, juices, jams etc.) made completely exempt from excise duty
Excise on cosmetics and toiletries halved to 16%
Increased focus on agricultural reforms with an aim to integrate the countrywide food market
Deregulation of the milk processing capacity
Excise duty structure largely untouched. Only for tea, the duty was reduced from Rs 2 per Kg to Re 1
Customs duty on tea and coffee doubled to 100%
Duty on imported pulses upped to 80%
Import duty on wine and liquor slashed from 210% to 180%
Excise on biscuits reduced to 8% from 16%. Excise on soft drinks and sugar boiled confectionery also reduced
All states to switch to VAT in FY04 (deadline now has been extended till end FY05)
Loans to agriculture and to small-scale sector will now be available at maximu 2% above prime lending rate (PLR)
Development plans for roads, ports, railways and airports
Customs duty on alcoholic beverages reduced
India offers a large and growing market of 1 billion people of which 300 million are
middle class consumers. India offers a vibrant market of youth and vigor with 54% of
www.GamesWala.com
www.GamesWala.compopulation below the age of 25 years. These young people work harder, earn more,
spend more and demand more from the market, making India a dynamic and
aspirational society. Domestic demand is expected to double over the ten-year
period from 1998 to 2007. The number of households with "high income" is
expected to increase by 60% in the next four years to 44 million households.
India is rated as the fifth most attractive emerging retail market. It has been
ranked second in a Global Retail Development Index of 30 developing countries
drawn up by A T Kearney. A.T. Kearney has estimated India's total retail market at
$202.6 billion, is expected to grow at a compounded 30 per cent over the next five
years. The share of modern retail is likely to grow from its current 2 per cent to 15-
20 percent over the next decade, analysts feel.
The Indian FMCG sector is the fourth largest sector in the economy with a
total market size in excess of US$ 13.1 billion. The FMCG market is set to treble from
US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per
capita consumption in most product categories like jams, toothpaste, skin care, hair
wash etc in India is low indicating the untapped market potential. Burgeoning Indian
population, particularly the middle class and the rural segments, presents an
opportunity to makers of branded products to convert consumers to branded
products.
India is one of the world’s largest producers for a number of FMCG products
but its FMCG exports are languishing at around Rs 1,000 crore only. There is
significant potential for increasing exports but there are certain factors inhibiting
this. Small-scale sector reservations limit ability to invest in technology and quality
up gradation to achieve economies of scale. Moreover, lower volume of higher value
added products reduce scope for export to developing countries.
The FMCG sector has traditionally grown at a very fast rate and has generally
out performed the rest of the industry. Over the last one year, however the rate of
growth has slowed down and the sector has recorded sales growth of just five per
cent in the last four quarters.
The outlook in the short term does not appear to be very positive for the
sector. Rural demand is on the decline and the Centre for Monitoring Indian
www.GamesWala.com
www.GamesWala.comEconomy (CMIE) has already downscaled its projection for agriculture growth in the
current fiscal. Poor monsoon in some states, too, is unlikely to help matters.
Moreover, the general slowdown in the economy is also likely to have an adverse
impact on disposable income and purchasing power as a whole. The growth of
imports constitutes another problem area and while so far imports in this sector
have been confined to the premium segment, FMCG companies estimate they have
already cornered a four to six per cent market share. The high burden of local taxes
is another reason attributed for the slowdown in the industry
At the same time, the long term outlook for revenue growth is positive. Give the
large market and the requirement for continuous repurchase of these product
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)
GROUP OF COMPANIES
www.GamesWala.com
www.GamesWala.com Frito-Lay North America
PepsiCo Beverages North America,
PepsiCo International
Quaker Foods North America
Mission
The
main
objective of the company is to provide best quality products to its
consumer. Another objective is to provide healthy rewards to its
investor, good reward to its employee and other investor and partners
who financially help the company
www.GamesWala.com
www.GamesWala.com
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.
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, pepsin and cola nuts.
www.GamesWala.com
www.GamesWala.com
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.
1906 - Pepsi gets another logo change, the third in
eight years. The modified script logo is created with the slogan, "The Original Pure
Food Drink."
1908 - Pepsi-Cola becomes one of the first companies to
modernize delivery from horse drawn carts to motor vehicles.
Two hundred fifty bottlers in 24 states are under contract to make and sell Pepsi-
Cola.
1910 - The first Pepsi-Cola bottlers' convention is held in
New Bern, North Carolina.
www.GamesWala.com
www.GamesWala.com1920 - Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy
you."
1928 - After five continuous losing years, Megargel reorganizes his company as the
National Pepsi-Cola Company, becoming the fourth parent company to own the
Pepsi trademark.
1934 - A landmark year for Pepsi-Cola. The drink is a hit and to attract even more
sales, the company begins selling its 12-ounce drink for five cents (the same cost as
six ounces of competitive colas). The 12-ounce bottle debuts in Baltimore, where it
is an instant success. The cost savings proves irresistible to Depression-worn
Americans and sales skyrocket nationally.
Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th,
1867-February 19th, 1934).
1935 - Guth moves the entire Pepsi-Cola operation to Long Island City, New York,
and sets up national territorial boundaries for the Pepsi bottler franchise system.
1936 - Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.
In 1940, the Pepsi Cola company made history when the first advertising jingle was
broadcast nationally on the radio. The jingle was "Nickel Nickel" an advertisement
for Pepsi Cola that referred to the price of Pepsi and the quantity for that price
"Nickel Nickel" became a hit record and was recorded into fifty-five languages.
1941 - The New York Stock Exchange
trades Pepsi's stock for the first time. In
support of the war effort, Pepsi's bottle
crown colors change to red, white, and
blue.
1942 - One on many company sponsored
efforts to allow soldiers to communicate
with friends or family. This record was
www.GamesWala.com
www.GamesWala.commade in New York City but often booths would be set up with mobile recording
equipment that was bought to where the soldiers were. Shell material on solid core.
78 rpm.
1943 - Pepsi's theme line becomes "Bigger Drink, Better Taste."
1948 - Corporate headquarters moves from Long Island City, New York, to midtown
Manhattan.
1950 - Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife,
Hollywood movie star Joan Crawford, is instrumental in promoting the company's
product line.
Pepsi receives its new logo, which incorporates the "bottle cap" look. The
new logo is the fifth in Pepsi history.
1953 - "The Light Refreshment" campaign capitalizes on a change in the product's
formula that reduces caloric content.
1955 - Herbert Barnet is named President of Pepsi-Cola.
1959 - Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice
President Nixon share a Pepsi.
1960 - Young adults become the target consumers and Pepsi's advertising keeps
pace with "Now it's Pepsi, for those who think young."
1962 - Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle
cap logo debuts, accompanying the brand's groundbreaking "Pepsi Generation" ad
campaign.
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
www.GamesWala.com
www.GamesWala.com16-ounce size. Twelve-ounce Pepsi cans are first introduced to the military to
transport soft drinks all over the world.
1964 - Diet Pepsi, introduced as America's first national diet soft
drink. Pepsi-Cola acquires Mountain Dew from the Tip
Corporation.
1965 - Expansion outside the soft drink industry begins. Frito-Lay of
Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc.
Military 12-ounce cans are such a success that full-scale commercial distribution
begins.
Mountain Dew launches its first campaign, "Yahoo Mountain
Dew...It'll tickle your innards."
1970 - Pepsi leads the way into metrics by introducing the
industry's first two-liter bottles. Pepsi is also the first
company to respond to consumer preference with light-
weight, recyclable, plastic bottles. Vic Bonomo is named
President of Pepsi-Cola. The Pepsi World Headquarters
moves from Manhattan to Purchase, NY.
1974 - First Pepsi plant opens in the U.S.S.R. Television ads introduce the new
theme line, "Hello, Sunshine, Hello Mountain Dew."
1976 - Pepsi becomes the single largest soft drink brand sold in American
supermarkets. The campaign is "Have a Pepsi Day!" and a classic commercial,
"Puppies," becomes one of America's best-loved ads. As people get back to basics,
Pepsi is there as one of the simple things in life.
1977 - At 37, marketing genius John Sculley is named President of Pepsi-Cola.
www.GamesWala.com
www.GamesWala.com
1978 - The company experiments with new flavors. Twelve-pack cans are
introduced.
1980 - Pepsi becomes number one in sales in the take home market.
1981 - PepsiCo and China reach agreement to manufacture soft drinks, with
production beginning next year.
1982 - Pepsi Free, a caffeine-free cola, is introduced nationwide. Pepsi Challenge
activity has penetrated 75% of the U.S. market.
1984 - Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a
New Generation." Lemon Lime Slice, the first major soft drink with real fruit juice, is
introduced, creating a new soft drink category, "juice added." In subsequent line of
extensions, Mandarin Orange Slice goes on to become the number one orange soft
drink in the U.S. Diet Pepsi is reformulated with NutraSweet (aspertame) brand
sweetener.
1985 - After responding to years of decline, Coke loses to Pepsi in preference tests
by reformulating. However, the new formula is met with widespread consumer
rejection, forcing there-introduction of the original formulation as "Coca-Cola
Classic." The cola war takes "one giant sip for mankind," when a Pepsi "space can"
is successfully tested aboard the space shuttle. By the end of 1985, the New
Generation campaign earns more than 58 major advertising and film-related
awards. Pepsi's campaign featuring Lional Richie is the most remembered in the
country, according to consumer preference polls..
1987 - Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo
Worldwide Beverages. Pepsi-Cola World Headquarters moves from Purchase to
Somers, New York. After a 27 year absence, Pepsi returns to Broadway with the
lighting of a spectacular new neon sign in Times Square.
1988 - Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.
www.GamesWala.com
www.GamesWala.com
1989 - Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation
Ahead." Chris Sinclair is named President of Pepsi-Cola International. Pepsi-Cola
introduces an exciting new flavor, Wild Cherry Pepsi.
1990 - American Music Award and Grammy winner rap artist Young MC writes and
performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the
Pepsi family by endorsing Diet Pepsi. The slogan is "You Got The Right One Baby."
1991 - Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada
becomes part of the company's North American operations. Pepsi introduces the
first beverage bottles containing recycled polyethylene terephthalate (or PET) into
the marketplace. The development marks the first time recycled plastic is used in
direct contact with food in packaging.
1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the
longstanding "Choice of a New Generation."
1993 - Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi." Pepsi-
Cola profits surpass $1 billion. Pepsi introduces an innovative 24-can multipack that
satisfies growing consumer demand for convenient large-size soft drink packaging.
"The Cube" is easier to carry than the traditional 24-pack and it fits in the
refrigerator.
1994 - New advertising introducing Diet Pepsi's freshness dating initiative features
Pepsi CEO Craig Weatherup explaining the relationship between freshness and
superior taste to consumers. Pepsi Foods International and Pepsi-Cola International
merge, creating the PepsiCo Foods and Beverages Company.
1995 - In a new campaign, the company declares "Nothing else is a Pepsi" and takes
top honors in the year's national advertising championship.
1996 - In February of this year, Pepsi makes history once again, by launching one of
the most ambitious entertainment sites on the World Wide Web. Pepsi World
www.GamesWala.com
www.GamesWala.comeventually surpasses all expectations, and becomes one of the most landed, and
copied, sites in this new media, firmly establishing Pepsi's presence on the Internet.
1997 - In the early part of the year, Pepsi pushes into a new era with the unveiling of
the GeneratioNext campaign. GeneratioNext 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.
PepsiCo. announces that, effective October 6th, it will spin off its restaurant division
to form Tricon Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will
be the largest restaurant company in the world in units and second-largest in sales.
1998 - Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A.
Enrico donates his salary to provide scholarships for children of
PepsiCo employees. Pepsi introduces PepsiOne - the first one
calorie drink without that diet taste!
2000 - Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his
skills and hard work elsewhere (for more money of course!), therefore putting an
end to his Pepsi page! For more information about Pepsi, choose a search engine
and search for 'Pepsi' or visit www.pepsi.com or www.pepsico.com.
2005 - Pepsi invited to introduce new brand cola
PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India
Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use
of foreign brands was allowed; PepsiCo bought out its partners and ended the joint
venture in 1994. Others claim that firstly Pepsi was banned from import in India, in
1970, for having refused to release the list of its ingredients and in 1993, the ban
was lifted, with Pepsi arriving on the market shortly afterwards. These controversies
www.GamesWala.com
www.GamesWala.comare a reminder of "India's sometimes acrimonious relationship with huge
multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola
Company have "been major targets in part because they are well-known foreign
companies that draw plenty of attention."
In 2003, the Centre for Science and Environment (CSE), a non-governmental
organization in New Delhi, said aerated waters produced by soft drinks
manufacturers in India, including multinational giants PepsiCo and The Coca-Cola
Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos —
pesticides that can contribute to cancer, a breakdown of the immune system and
cause birth defects. Tested products included Coke, Pepsi, 7 Up, Mirinda, Fanta,
Thums Up, Limca, and Sprite. CSE found that the Indian-produced Pepsi's soft drink
products had 36 times the level of pesticide residues permitted under European
Union regulations; Coca Cola's 30 times. CSE said it had tested the same products in
the US and found no such residues. However, this was the European standard for
water, not for other drinks. No law bans the presence of pesticides in drinks in India.
The Coca-Cola Company and PepsiCo angrily denied allegations that their products
manufactured in India contained toxin levels far above the norms permitted in the
developed world. But an Indian parliamentary committee, in 2004, backed up CSE's
findings and a government-appointed committee, is now trying to develop the
world's first pesticides standards for soft drinks. Coke and PepsiCo opposed the
move, arguing that lab tests aren't reliable enough to detect minute traces of
pesticides in complex drinks. On December 7, 2004, India's Supreme Court ruled
that both PepsiCo and competitor.
The Coca-Cola Company must label all cans and bottles of the respective soft drinks
with a consumer warning after tests showed unacceptable levels of residual
pesticides.[citation needed]
Both companies continue to maintain that their products meet all international
safety standards without yet implementing the Supreme Court ruling.[citation
needed] As of 2005, The Coca-Cola Company and PepsiCo together hold 95%
market share of soft-drink sales in India. PepsiCo has also been alleged[attribution
needed] to practice "water piracy" due to its role in exploitation of ground water
resources resulting in scarcity of drinking water for the natives of Puthussery
www.GamesWala.com
www.GamesWala.companchayat in the Palakkad district in Kerala, India. Local residents have been
pressuring the government to close down the PepsiCo unit in the village.
In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola,
had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola
Company maintain that their drinks are safe for consumption and have published
newspaper advertisements that say pesticide levels in their products are less than
those in other foods such as tea, fruit and dairy products. In the Indian state of
Kerala, sale and production of 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.
3.1 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
www.GamesWala.com
www.GamesWala.com
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.
www.GamesWala.com
www.GamesWala.comPepsi 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:
Most businesses use a "cost plus" method for setting the prices of their products. This involves determining unit production costs and then adding in a profit margin. However, many other factors are involved. Consider "perceived price" (what you think consumers will be prepared to pay), demand elasticity (is it elastic or inelastic?), competitors' pricing (can you afford to undercut their prices?), pricing objectives (what do you want to achieve Ð increased market share? increased profits? market leadership? etc.)
Example 2 Perfume
מ How much does it cost to make?
מ Can businesses afford a "price war"?
מ Why is Coca Cola so successful?
As far as the pricing goes, the 300 ml Pepsi bottle is priced at Rs. 10. But the company soon realized that this pricing worked in the urban markets but not in the rural markets as in the rural markets, Pepsi is not a necessity but a luxury. They found out that people in the rural markets bought cold drinks only if there was some occasion. A price point of Rs 10 for a 300 ml bottle has proved a major deterrent: it has kept away new consumers in the urban and semi-urban pockets, and it has blanked out the far larger rural markets where annual per capita consumption is less than a bottle. So the Rs. 10 bottle was not that successful. But their sales increased after introducing the “chota Pepsi”. This 200ml Pepsi was reasonably priced between Rs.5- Rs.7. This was a major weapon for the expansion of the rural market. Pepsi expects the small-size offering to account for 30 per cent of volumes this year compared with 18 per cent last year. But there are other areas of concern — principally that the 200 ml offering should not cannibalize 300 ml sales. In that case, there will be no market growth. That is why pricing could be crucial. Pepsi, for instance, has reckoned that giving consumers 33 per cent (100 ml) less cola at 50 per cent of the price (Rs 5) is not a sustainable option and can, at best, be used as an introductory offer. The conclusion is based on hard facts. Last year, the beverage giants test-marketed 200 ml bottles at a price of Rs 5. Instead of growth, Pepsi discovered that 300 ml drinkers merely shifted to the 200 ml variant, the market remained stagnant and everyone lost money. The conclusion was clear: cutting prices does not necessarily expand the market.
www.GamesWala.com
www.GamesWala.com
Place
This generally refers to the physical locations of product sales as well as the methods of distribution. However, it is also considered to be the "place" or "position" in the market of the product; refer to information below. Businesses need to make many decisions related to "place": access, parking, competition, physical location etc.
It’s the most important P in the cola wars — Place. And nothing evokes more passion in Pepsi and Coke than distribution. Major innovation is underway on the distribution front at Pepsi, pre-selling being the biggest of all. It’s been successfully test marketed in Bangalore, Baroda and Coimbatore — and may soon roll out nationally.
In case of the distribution network, there is no involvement of wholesalers in the distribution of products. It is more like an agent network. The companies have divided the country into various regions and established a franchisee in each region. The franchisees have their own bottling plants and manage all the day-to-day operations. However, of late, the soft drinks companies have started setting up company owned bottling units have been acquiring some of its franchise bottles.
In the current system, the strike rate in the Delhi market is about 40 per cent, which can be improved to 80 per cent in the peak season, claims a franchise director. The result for Pepsi could be significant
savings. “Colas service just 7.5-8 lakh accounts compared to the other FMCG players who service three times the number. Innovation in our distribution system will take us closer to the 21 lakh figure,” says Vats, a franchise director.
Pepsi believes in direct distribution whereas Coke doesn’t. It mainly concentrates on dealers and most importantly cutting costs. “There are plenty of innovations possible in distribution that can cut costs”, says a Pepsi official.
For Pepsi, the rural market is a chosen thrust this year. It has targeted to reach 20 to 28 per cent of the rural population in the first year of this operation. In the first stage, the corporation is planning a massive roll out in villages
www.GamesWala.com
www.GamesWala.comwith populations of 5000. To do this effectively, Pepsi is focusing on establishing a cold chain.
The company has developed special freezers that allow its products to stay chilled despite power cuts of three to four hours. It will also use traditional iceboxes to sell its product in rural India. For the rural markets, Pepsi is looking at the wholesale route since the logistics of direct distribution are too huge to handle in the interiors.
Promotion
This refers to the promotion of the product to the target market. This is achieved through a combination of: advertising: use of electronic and print media. The "reach" (how many people will see the advert), frequency (how many times will I advertise the product?) and impact of the advertising must also be evaluated.
Personal selling: what happens in the "shop", contact between sales people and consumers or customers.
Sales promotion: use of gimmicks and incentives e.g. competitions. Sponsorship and promotional licensing: including specific products sold under license that promotes the business (e.g. football jumpers). Publicity or public relations: "adversarial" in local papers or special promotional materials.
Due to the cola wars promotion, and advertising has always been an integral part for both the cola cos: Pepsi and Coke. But for the first time perhaps in the history of cola wars, the strategies of the two giant cos are diverging in India. Whether it’s business or product strategies or the critical distribution game plan, the archrivals are taking roads that do not meet. Mr. Bakshi of Pepsi Co. is bringing a change in their distribution and marketing strategies. Now days where Coke is concentrating more on the 200ml bottle, Mr. Bakshi of Pepsi says “The 200ml bottle gets zero demand in the rural market.” He is concentrating on the 1.0 liter bottles of Pepsi. The Pepsi Co. had used an excellent marketing strategy here. During the Lagaan mania they were distributing free tickets in the rural markets along with their 1.5-liter PET bottles. Pepsi made this 1.5-liter PET bottle very famous for their special festive occasions and marriage.
Well the popularity of the product has also increased due to their advertisements or basically famous cricket and bollywood personalities endorsing this product. For instance the Sachin “Aala re Aala” advertisement where even he is wearing a mask along with those rural kids. Or you can even take the new Sachin and Amitabh Bachchan advertisement where both of them say “ Yeh Dil Maange More!!!!!!!” Sachin has done many advertisements for Pepsi in the span of 10 years.
www.GamesWala.com
www.GamesWala.com Pepsi’s rural market advertisement- Pepsi has unveiled a major campaign in Andhra Pradesh, roping in top Telugu film star, Pawan Kalyan, even as the star's elder brother, Chiranjeevi, is into pushing Coca-Cola's Thums Up. Pawan Kalyan, however, ruled out any rivalry between him and his brother. Though he will sing Yeh Dil Maange more, his brother will say Yeh Dil Maange no more. “We have our lives and we have our own choices,” he said on the possible in-house cola feud
Pepsi also kicked off a rural campaign, spread over two months. Decorated Pepsi vans will roll out into market of the State. Every consumer drinking a Pepsi from these vans will get to play a game and win prizes. These include Pawan Kalyan memorabilia, T-shirts, autographed posters and calendars.
Explaining the reason for choosing Pawan Kalyan to endorse Pepsi, Mr. Rohit Ohri, Director HTA, Pepsi's ad agency, said Pepsi and Pawan Kalyan were going to be an ideal combination. “Both are so youthful, energetic and fun-loving,” he said. Mr. Vijay Shanker Subramaniam, Vice-President (Marketing), Pepsi Foods Ltd, said the company was starting an “aggressive campaign” in Andhra Pradesh. Apart from the van operations, which were flagged off by Pawan Kalyan, other campaigns have been lined up throughout the year.
Later, Pawan Kalyan presented a cheque for Rs 5 lakh to Mr. Mehmood Ali, a mechanic with the Andhra Pradesh State Road Transport Corporation for winning Pepsi's Mera number ayega campaign.
Lastly, we all know that though Coke ranks 1st with 57 % of the market share (which includes Thums –up too), Pepsi ranks 2nd with 43% of the market share. The Pepsi Co. has fought a bitter struggle upwards starting from a zero market share. When Pepsi entered the market in 1989, they faced the daunting task of pacifying Indian swadeshi activists alone. Their trucks were smashed and offices ransacked so as to dissuade them from entering the Indian market. Whereas when Coke entered (or re-entered) the Indian market in 1993, the situation had been smoothed out by Pepsi already, and the atmosphere was extremely conducive to foreign multinationals coming to India. Therefore, though Coke ranks 1st, it got this position only after introducing the Parle products who already had a 70% market share at that point of time. Presently Pepsi Co. is also concentrating on its other products like slice, mirinda and aquafina. Their next aim is to popularize their other products like sodas, then the new Pepsi Aha- the apple drink and beat coke to become the new market leader.
Highlights of Indian FMCG sector:
The Indian FMCG sector - the fourth largest sector in the economy –market
size > $13.1 bn
Strong MNC presence
www.GamesWala.com
www.GamesWala.com Well established distribution network
Intense competition between the organized and unorganized segments
200 million people expected to shift to processed and packaged food by 2010
Low operational cost.
India needs around $28 billion of investment in the food-processing industry.
FOOD AND BEVERAGES
Size of the Indian food processing industry- $ 65.6 billion, including $20.6
billion of value added products.
The health beverage industry -$230 million
Bread and biscuits at $1.7 billion
Chocolates at $73 million
Ice creams at $188 million.
The size of the semi-processed/ready-to-eat food segment - over $1.1 billion.
Three largest consumed categories of packaged foods are packed tea,
biscuits and soft drinks.
Total soft drink market is estimated at 284 million crates a year or $1 billion.
4. ORGANIZATIONAL STRUCTURE
www.GamesWala.com
Customer Executives
Assistant Sales and Development Manager
Territory Development Manager
Unit Manager
Marketing Development Manager
Sales Trainees
Marketing Development Coordinator
www.GamesWala.com
5. PEPSICO’S DISTRIBUTION SYSTEM
www.GamesWala.com
Consumer
Indenting
Primary Sale
Secondary SaleMarket / Retailers
Distributor
PepsiCo’s Plant
www.GamesWala.com
6. PEPSICO’S PRODUCTS
Following are main products of Pepsi co(india) pvt limited.
www.GamesWala.com
Convenience Channel
Grocery Channel
www.GamesWala.com Pepsi
Mirinda Orange
Mirinda Lemon
7 Up
Mountain Dew
Slice
Mirinda Sorbet (Limited Edition)
Pepsi Gold (Limited Edition)
Pepsi Diet
Lehar Soda
Aquafina
Tropicana
Gatorade
Lehar Namkeen
Lays
Kurkure
Uncle Chips
Cheetos
7. RETAIL CHANNEL
Convenience channel includes different
kiosks are which is convenient to general
public.
www.GamesWala.com
www.GamesWala.com
Grocery channel includes different grocery shops .
Eatery channel includes different hotels, restaurants etc.
Sales Management
Recruitment Procedure
There are three main line for recruitment of the Sales trainee of the company
Campus Interview
Consultant
Employee of the Company
Campus Interviews: The company recruits students from various institutes of
professional courses like MBA. The selection procedure includes GD & personal
interviews followed by HR interviews.
www.GamesWala.com
www.GamesWala.comConsultants: The company has tie-ups with professional consultants which provide a
high prospector base for recruitment. The low level & the middle level employees
are recruited through this procedure.
Employees of the company: Mostly the top level employees are selected from inside
the company since the company can get loyal persons having the experience of the
company’s work culture.
Training
There are mainly two types of method for giving training to their employee
On the Job training and
Classroom training through lectures.
Evaluation
There is a evaluation form in which different objectives of the company are written.
At the end of the year, immediate officer just tally whether a particular objectives of
which predetermine objectives are achieved or not.
Sales Quota
In company, sales quota is decided on the basis of the sales of the last year. After
considering sales of the company, they analyze the growth of the market. On the
basis of the sales and growth of the market, company decides sales quota for the
next year. On the basis of the sales quota, target of each area is decided.
Sales territory:
Sales territory is decided on the basis of the no. of the distributor in the particular
territory. Normally distributor has to cover 40 outlets per day per Route driver. In
particular territory, routes are decided by the company. Like Route A Route B Route
C. Route Driver (RD) of the company visits particular route twice in a week. Route
Driver distributes products as per requirements of the outlets.
LOAD INS:
www.GamesWala.com
www.GamesWala.com
RA to return to the Warehouse after completing the days runs as per the
Route Planner.
Requisition forms shall be updated with quantity of unsold stock and empties
brought back to Warehouse and shall be submitted to checker.
Checker shall independently verify the stock brought in by the RA and record
the physically verified Stock in the checkers report.
The Load in slip needs to be signed by the RA, Checker and the settlement
clerk.
Settlement clerk / Warehouse manager to reconcile physical stock vis- a-vis
stock as per Requisition Form.
Checker shall update the Gate Pass section of DSS with details of actual load
ins and empties and submit to the ASDOS clerk.
INVENTORY CONTROL – MANAGEMENT / ACCOUNTING OF EXPIRED
STOCKS
Warehouse Manager to ensure that expired stock is stored separately.
Stock supervisor to co-ordinate with Warehouse manager and submit report of
expired stock to TDM & SAM.
Details of all expired products needs to be sent to MU control Group as per
Authority Matrix
MU control group to forward the same to BU for approvals.
Post approval from BU, expired stocks will be drained at warehouses in
presence of PI employee.
Sales accounting Manager shall be the FPR for issuing instructions to
warehouses for draining of stocks.
MARKET AUDIT
www.GamesWala.com
www.GamesWala.comMarket audit is carried out through deployment of external resources/ internal
resources.
Market Audit must be done for the following claims:
Card Discounts
Scheme Discounts
Spoke Commission
Market Auditors to show the report to the CE and the TDM for their comments on the
market audit done and obtain their signature on the report.
At the end of every month, the market auditors must provide the report of each and
every distributor audited against the plan given at the beginning of the month to the
UFM/SAM
www.GamesWala.com
www.GamesWala.com“EACH DEALER SURVEY AND RELATIONSHIP
MANAGEMENT WITH RETAILERS”
SCOPE OF PROJECT
1. Detailed study of the noncarbonated soft drinks industry in India2. Analysis of Pepsi’s performance against the other prevailing noncarbonatedSoft drinks brands in the country.3. Evaluate the performance of Agency performance and compare with the market size in the area.4. Find out the problems in the area related to retailers.
OBJECTIVES OF THE PROJECT
1- Survey of each dealer and retailer in the area allotted.
2- Create good relationship with Retailers.
3. Sell the products to the retailers who are not willing to buy Pepsi product.
Research Methodology
SAMPLING
Basic sampling Term
www.GamesWala.com
www.GamesWala.com
SAMPLE AND SAMPLE SURVEY
o A part of a population, or a subset from a set of units, which is provided by
some process or other, usually by deliberate selection with the object of
investigating the properties of the parent population or set.
o Sample survey refers to the survey which is carried out using a sampling
method, i.e. in which a portion only, and not the whole population, is
surveyed.
POPULATION
o In statistical usage the term population is applied to any finite or infinite
collection of individuals.
o It has displaced the older term universe, which is derived from the universe of
discourse of logic.
o It is practically synonymous with aggregate and does not necessarily refer to a
collection of living organisms.
SAMPLING UNIT
o One of the units into which an aggregate is divided or regarded as divided for
the purposes of sampling, each unit being regarded as individual and
indivisible when the selection is made.
o The definition of unit may be made on some natural basis, or on some
arbitrary basis.
o In the case of multi-stage sampling the units are different at different stages
of sampling.
SAMPLING FRAME
www.GamesWala.com
www.GamesWala.como A list, map or other specification of the units, which constitute the available
information relating to the population designated for a particular sampling
scheme.
o The nature of the frame exerts a considerable influence over the structure of a
sample survey.
o In multi-stage sampling it is sometimes possible to construct the frame at
higher stages during the progress of the sample survey itself.
SAMPLING DESIGN
o A sample design is a definite plan for obtaining a sample from the sampling
frame.
o It refers to the technique or the procedure the researcher would adopt in
selecting some sampling units from which inferences about the population is
drawn.
STATISTIC AND PARAMETER
o A statistic is a characteristic of a sample.
o A parameter is a characteristic of a population.
o To obtain the estimate of a parameter from a statistic constitutes the prime
objective of sampling analysis.
METHODOLOGY:
DATA COLLECTION
1) Primary Source · Retailers · Whole sellers
www.GamesWala.com
www.GamesWala.com
2) Secondary Source
· No Secondary Source
RESEARCH INSTRUMENTS
· Questionnaires
. FAQs (Frequently asked questions)
SAMPLING PLAN
1) Sampling Unit: Who is to be surveyed?
· Urban Retailers
2) Sample Size: How many people to be surveyed? · All retailers in the area (of all age groups)
3) Sampling Procedure:
We have taken sample from following areas:
1) Alambagh main
2) Azad Nagar
3) R.D.S.O
4) Tedhi Pulia
5) Geetapalli
www.GamesWala.com
Pepsi
coca-cola
www.GamesWala.com
Total Number of Shops In The Area - 246
Warm Stock-15543 units
Cold Stock in Refrigerator-6743 units
Total Stock- 22286 Units
Retailers’ preference (On the basis of the stocks they
have in the shop)
Pepsi 65%
Coca-cola 35%
35%
65%
www.GamesWala.com
sign board pepsi
sign board coca-cola
Visi Pepsi
Visi Coca-Cola
www.GamesWala.com
Sign Board on Shop
114 shops has signboards of any company
Pepsi 81% (75 Shops)
Coca-cola 19% (39 shops)
81%
Refrigerator in Shop-
80 shops has refrigerator
Pepsi-73% (58shops)
Coca-cola-27% (22 Shops)
www.GamesWala.com
warm StockPepsi
warm StockCoca-Cola
Visi Pepsi
Visi Coca-Cola
www.GamesWala.com
27%
73%
Warm Stock-
Pepsi-59%(9170 units)
Coca-Cola- 41%(6372 units)
41%
59%
Cold Stock-
Pepsi-55% (3708 units)
Coca-Cola-45% ( 3034 units)
www.GamesWala.com
Cold StockPepsi
Cold StockCoca-Cola
www.GamesWala.com
45%
55%
Through FAQs
1-The market position of the Pepsi is very strong in area
allotted to me near about 75%softdrinks sold belongs to
Pepsi.
2-Dew is the most selling brand in the area and at second
position is mineral water.
3-The sale varies between 25000 to 50000 rupees daily on
each route. There are three routes so total sales varies
between 75000 to 150000 daily in the agency.
www.GamesWala.com
www.GamesWala.com4-Retailers are not getting the benefits provided by the
company because agency is more interested in selling to the
whole sellers in bulk.
5-when there is any scheme launched by the company
agency sells all the stock to the whole sellers for some
benefit.
7-Whole sellers are selling at low price than Agency because
of the stock they bought in schemes.
8-The work force is not well compensated their salary is very
little(2500 Rs.)
9-Acceseries are provided to the big shops only and they
should be on the main road.
1. Monthly inspection should be done to find out the
problems of customers.
2. Schemes should be provided to the customers not to the
whole sellers.
3. Accessories should be provided on the basis of sale.
4. Check the selling of whole sellers at lower price than
agency.
www.GamesWala.com
www.GamesWala.com
5. Agency should be more honest in providing benefits to
retailers.
6. Salary of sales force should be increased so they may
not do fraud with retailers to earn more.
1-An inspection officer should be recruited who perform surprise inspection of the market and find out the problems.
2-Salary of the sales personals should be increased so they may not indulge in fraud to retailers.
3-The vehicles of the agency should be inspected so the delivery should be maintained.
4-The supply from the factory to the agency should be good especially the brands like DEW.
www.GamesWala.com
www.GamesWala.com
My Project gives me the true knowledge of customer relationship concepts & also helped
to understand the working environment of the Pepsico.
The major thing, which I found in my whole project, is as follow:
The market share of Pepsico is more than Coke
The distribution channel of both company is very bad.
Advertising policy of Pepsi is better than Coca Cola.
Retailers are highly dissatisfied with salesmen behavior.
Company relation with retailers is credit based.
There are very less effort for promoting sales.
There are no direct communication between retailers and company.
There are no any route incharge.
Retailers are not aware about company scheme and product development.
Scheme is not distributed honestly among retailers.
www.GamesWala.com
www.GamesWala.com
Bibliography
www.google.com
www.Pepsicoindia.com
www.Pepsico.com
Philip Kotler, Marketing Management, Twelfth Edition.
Paul E. Green, Donald S. Tull and Gerald Albaum-
Research For Marketing Decision,
G.C. Berry , Marketing Research
www.GamesWala.com
www.GamesWala.com
Questionnaire Design
s.no Sign board Shop name Adress Ph. No.
visi warm stock cold stockpci ccx pci ccx pci ccx
123456789
10111213141516171819202122232425262728293031323334
www.GamesWala.com
www.GamesWala.com
www.GamesWala.com