Sharad Vijayvargiya@Pepsico

Faculty of Management StudiesInstitute of Rural Management

SUMMER INTERNSHIP PROGRAM – 2009

A PROJECT REPORT ON

PEPSI GOLD CLUB (IMPACT OF RETAIL INATIATE SCHEME ON PEPSI SALE)

At

CORPORATE GUIDE: FACULTY GUIDE:Mr. Ritesh Arora Dr. Preeti Yadav(Market development Coordinator) Faculty,Pepsi, Jaipur. Jaipur.

PRESENTED BY:Sharad VijayvargiyaEnroll. No: BM/JULY/O8/21/1737

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PGDBM (2008-10)

CERTIFICATE

This is to certify that this project report entitled “IMPACT

OF RETAIL INATITE SCHEME ON PEPSI SALE

(GOLD CLUB AUDIT)” is a record of project work done

independently by Sharad Vijayvargiya, under my guidance

& supervision and that it has not previously formed the basis

for the award of any degree, fellowship or associateship to

him.

Date:

(Prof. Preeti Yadav)

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DECLARATION

I hereby declare that this project work titled “IMPACT OF

RETAIL INTIATE SCHEME ON PEPSI SALE (GOLD CLUB AUDIT)”

conducted at PEPSICO (Varun Beverages) is submitted by

me to the Faculty of Management Studies- Institute of Rural

Management in partial fulfillment of requirements of MBA

programme is a bonafide work carried by me under the

guidance of Dr. Preeti Yadav.

This has not been submitted earlier to any other

university or Institution for the award of any

degree/diploma/certificate or published any time before.

Sharad Vijayvargiya

PGDBM (FMS-IRM)

Jaipur.

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ACKNOWLEDGEMENT

I would like to express my sincere thanks to my Project

Guide Mr. Ritesh Arora (F.M.O.) for his guidance and support

throughout my training at PepsiCo Ltd.(Varun Beverages).

His calm demeanor and willingness to teach has been a great

help in our successfully completing the project. My learning has

been immeasurable and working under him was a great

experience.

I extend my sincere thanks to all the staff members of PepsiCo

for providing a very hospitable and helpful work environment

and making my summer training an exciting and memorable

event.

My heartfelt gratitude to respected Faculty Guide,

Dr. Preeti Yadav. Without her continuous help the project

would not have been materialized in the present form. Her

valuable suggestions helped me at every step.

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Finally, I thank our Institute FMS-IRM for making this

experience of summer training in an esteemed organization like

PepsiCo Ltd. (Varun beverages).

TABLE OF CONTNTS

S.NO. CHAPTER PAGE NO.

1 Introduction To The Topic 8-9

2 Objective Of Study 10-12

3 Executive Summary 13

4 Industry Analysis 14-29

5 SWOT Analysis 30-31

6 Research Methodology 32-33

7 Gold Club Audit 34-37

8 Data Analysis 38-63

9 Limitation 64

10 Economical Utility Of Study 65-69

11 Findings 70-71

12 Recommendations 72-73

13 Questionnaire 74

14 Bibliography 75

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List of Tables and Diagrams

S.No

. Diagrams/Table’s Heading Page No.

1Distribution of locations (Pie Chart)

39

2( Location A ) Visi Size Table and Column Diagram

40

3( Location A ) Rack Type Table and Pie Chart

41

4

( Location A ) Visi/Rack Purity & Visi POG Table and Column

Diagram 42

5( Location A ) Rack/Visi Charging Table and Column Diagram

43

6(Location B ) Visi Size Table and Column Diagram

44

7 (Location B) Rack Type Table and Pie Chart 45

8

(Location B) Visi/Rack Purity & Visi POG Table and Column

Diagram 46

9(Location B) Rack/Visi Charging Table and Column Diagram

47

10(Location C) Visi Size Table and Column Diagram

48

11(Location C) Rack Type Table and Pie Chart

49

12

(Location C) Visi/Rack Purity & Visi POG Table and Column

Diagram50

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13 (Location C) Rack/Visi Charging Table and Column Diagram 51

14 (Location D)Visi Size Table and Column Diagram 52

15 (Location D) Rack Type Table and Pie Chart 53

16

(Location D) Visi/Rack Purity & Visi POG Table and Column

Diagram 54

17 (Location D ) Rack/Visi Charging Table and Column Diagram 55

18 (Location E ) Visi Size Table and Column Diagram 56

19(Location E ) Rack Type Table and Pie Chart

57

20

(Location E ) Visi/Rack Purity & Visi POG Table and Column

Diagram58

21(Location E ) Rack/Visi Charging Table and Column Diagram

59

22(Location F) Visi Size Table and Column Diagram

60

23 (Location F) Rack Type Table and Pie Chart 61

24

(Location F ) Visi/Rack Purity & Visi POG Table and Column

Diagram62

25(Location F) Rack/Visi Charging Table and Column Diagram

63

26Economical Analysis: Table 1 & Diagram

66


68


69

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INTRODUCTION TO THE

TOPIC

PepsiCo Pvt. Ltd. is world leader in convenient snacks, foods

and beverages. It produces many foods beverage products like

Frito-Lay, Mountain dew, Mirinda, Slice, 7up, Nimbooz,

Tropicana, Pepsi etc.

PepsiCo Pvt. Ltd. is running many Retail Initiate Schemes such

as Gold Club, Prestige Club, and Exclusive Club etc. Each

scheme has its own format. We got Gold Club Scheme which is

also known as Space Club. It is a retail initiate scheme which

impacts sale. In Jaipur, Gold Club is having 500 retailers of

Pepsi, which gives highest sale to company.

Company provides Visi coolers to these retailers. Visi coolers

are commonly known as Pepsi Fridge. Gold club

Scheme is a kind of audit where we check visi at several bases.

For it there is a format, which we can see on next page.8

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Today Visi Purity, Rack purity, Rack Charging, Visi Charging

and Visi POG are major problem for company. Our study is

based upon it and our results show this. PepsiCo Pvt. Ltd. wants

to know its visis conditions as well as art of use by retailers.

Company has a format for it.

S.No. Outlet

Name

Location Visi

Size

Rack

Type

Visi

Purity

Visi

Charging

Visi

POG

Rack

Purity

Rack

Charging

No. of

SKU

Available

FMO

Count

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OBJECTIVE OF STUDY

There were various objectives to conducting this study, we can

mention them by following points:-

To know visi’s condition such as its size, type, maintenance

problem: - Company wanted an accurate database of visis. They

were having database but it was not accurate such as in some

outlets visi is PVC but in record it was GRAVITY. In some

outlets visi is 300 liters. But it was 200 or 400 Liters in records.

In other hand company wanted to check visis condition like are

they having any maintenance problem or not?

To know retailers problem regarding supply, scheme and

others: - What types of problems retailers are facing? It was

company’s one of the main objective. Are they getting proper

supply or not? Are they getting schemes or not? Suppliers’

behavior is perfect or not?

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To know about Visi audit (visi purity, visi charging, visi

POG): - Company also wanted to know that are retailers using

visis for PepsiCo products or not? Are they using it for personal

use or for keeping other company’s products?

To know about Rack audit (rack purity, rack charging): -

Company wanted to know how many retailers is using rack audit

norm? It means are they arranging rack in appropriate manner

and filling visi according to company’s policies?

To know about SKU availability: - Company also wanted to

know how many retailers are having full products and in various

sizes like Pepsi (200ml. , 300ml. ,1 liter, 2 liters), Pepsi My Can,

Mirinda (200ml. , 300ml. ,1 liter, 2 liters), Nimbooz (200ml. ,

300ml. ,1 liter, 2 liters),same case in Tropicana, Mountain dew

etc.

To know about FMO count (PEPSI, MIRINDA): How much

stock retailers are having of Mirinda, Pepsi? Through this

company estimates its sales. In it we calculate no. of bottles like

Joshi Cold Drink is having 50 bottles of 500ML, and 15 bottles

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of 2 liters of Pepsi. In this case I will mention 65 in Pepsi FMO

count.

To analysis its Supply chain and customer relationship

management: - Company wanted to know that are Retailers

getting PepsiCo products by proper supply chain? And in other

hand are retailers getting full satisfaction by customer

relationship management?

To know about market condition of its visis as compare to

competitors: - Company wanted to know that competitor’s visis

{coca-cola} are serving in what manner. It means are they

providing any special size or features? Company can improve

the quality, features of its visi’s by analysis its competitors

strategy.

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Executive Summary

Soft drinks are non-alcoholic water-based flavored drinks that

are optionally sweetened, acidulated and carbonated, some

carbonated soft drinks also contains caffeine; mainly the brown-

colored cola drinks.

In India PepsiCo and Coca cola are major player of soft drink

industry. Varun Beverage Ltd. is the main bottlers for Pepsi in

India. Varun Beverages Limited is a group company of R.J.

Group.

RJ Corp has business interests in restaurants (Pizza Hut and

KFC), coffee chain (Costa Coffee), and Walt Disney group

company Disney Artist, ice cream(Cream Bell), liquor (through

a JV with beer major In Beverage), real estate, hotels and

education. All food, retail and franchise operations are

consolidated under group company Devyani International.

In January 2009, the government cleared the decks for a $50-

million (about Rs 250 crore) infusion of foreign direct

investment by PepsiCo Holdings into the India arms.

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INDUSTRY- ANALYSIS

(The originator of PEPSI Caleb D. Bradham)

Global level: - Caleb Bradham, a New Bern, North

Carolina, druggist, who first formulated Pepsi-Cola, founded

PepsiCo’s beverage business in 1898.

Today, Brand Pepsi is part of a portfolio of beverage brands that

includes carbonated soft drinks, juices and juice drinks, ready-

to-drink teas and coffee drinks, isotonic sports drinks, bottled

water and enhanced waters. PNAB (PepsiCo North American

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Beverages) has well known brands such as Mountain Dew, Diet

Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water,

Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice,

Dole, Tropicana Twister and Tropicana Season's Best.

PNAB manufactures and sells concentrate for some of these

brands to licensed bottlers, who sell the branded products to

independent distributors and retailers. PNAB provides

advertising, marketing, sales and promotional support for its

brands. This includes some of the world's best-loved and most-

recognized advertising.

In 1992, PNAB formed a partnership with Thomas J. Lipton Co.

to sell ready-to-drink tea brands in the United States. Pepsi-Cola

also markets Frappuccino ready-to-drink coffee through a

partnership with Starbucks.

Anthony Rossi as a Florida fruit packaging business founded

Tropicana in 1947. In 1954, Rossi pioneered a pasteurization

process for orange juice. For the first time, consumers could

enjoy the fresh taste of pure not-from-concentrate 100% Florida

orange juice in a ready-to-serve package. The juice, Tropicana

Pure Premium, became the company's flagship product. PepsiCo

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acquired Tropicana, including the Dole juice business, in August

1998.

SoBe became a part of PNAB in 2001. SoBe manufactures and

markets an innovative line of beverages including fruit blends,

energy drinks, dairy-based drinks, exotic teas and other

beverages with herbal ingredients.

Gatorade thirst quencher sport drinks, was acquired by The

Quaker Oats Company in 1983 and became a part of PepsiCo

with the merger in 2001. Gatorade is the first isotonic sports

drink. Created in 1965 by researchers at the University of

Florida for the school's football team, "The Gators," Gatorade is

now the world's leading sports drink.

PepsiCo International is comprised of all PepsiCo businesses in

Europe, Asia, Africa and Australia.

Historically, Pepsi-Cola began selling its products in Europe in

the 1930s and expanded international beverage operations

rapidly beginning in the 1950s. PepsiCo formally established an

international food unit in 1973, and 30 years later, in 2003 the

company combined the food and beverage businesses to form

PepsiCo International.

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Today, the employees of PepsiCo International make, sell and

deliver a variety of great tasting foods and beverages around the

world, including Lay’s potato chips, Doritos, Cheetos, Quaker

Oats, Pepsi-Cola, Gatorade, Lipton ready to drink teas, and

Tropicana juices. Brands sold exclusively in international

markets include 7-Up and Mirinda beverages and many popular

local snack brands, including Walkers in the United Kingdom,

Matutano in Iberia, Duyvis nuts in Western Europe, Marbo and

Star snacks in Eastern Europe, Lebedyansky juices in Russia,

Simba in South Africa and Smith’s in Australia. The company

also regularly introduces unique products for local tastes.

PepsiCo International has a well-earned reputation of giving

back to the communities in which its products are sold, with a

focus on health and wellness, environmental sustainability and

education. Specific programs are aimed at promoting active

lifestyles for children; recycling and environmental cleanup in

local communities; and book and computer donations to libraries

and schools.

Indian level: - PepsiCo entered India in 1989 and has

grown to become one of the country’s leading food and

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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, Mirinda 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, Tropicana 100

percentage fruit juices, and juice-based drinks – Tropicana

Nectars, Tropicana Twister and Slice. Local brands – Lehar

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

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extruded snacks, Uncle Chipps and traditional snacks under the

Kurkure and Lehar brands. The company’s high fibre 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 Chipps 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 three 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

farmers.

Performance with Purpose. Performance with Purpose

articulates PepsiCo India's belief that its businesses are

intrinsically connected to the communities and world that

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surrounds it. Performance with Purpose means delivering

superior financial performance at the same time as we improve

the world. To deliver on this commitment, PepsiCo India will

build on the incredibly strong foundation of achievement and

scale up its initiatives while focusing on the following four

critical areas that have a business link and where we believe that

we can have the most impact.

OUR CUSTOMERS

Our customers include authorized bottlers and independent

distributors, including foodservice distributors and retailers. We

normally grant our bottlers exclusive contracts to sell and

manufacture certain beverage products bearing our trademark

within a specific geographic area. These arrangements provide

us with the right to charge our bottlers for concentrate, finished

goods and Aquafina royalties and specify the manufacturing

process required for product quality.

Since we do not sell directly to the consumer, we rely on and

provide financial incentive to our customers to assist in the

distribution and retailers, these incentives include volume- based

rebates, product placement fees, promotions and displays. For

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our bottlers, these incentives are referred to as bottler funding

and are negotiated annually with each bottler to support a variety

of trade and consumer programs, such as consumer’s incentives,

advertising support, new product support, and vending and

cooler equipment placement. Consumer incentives include

coupons, pricing discount and promotions, and other

promotional offers .advertising support is directed at advertising

programs and supporting bottler media. New product support

includes targeted consumer and retailers incentives and direct

marketplace support, such as point- of – purchase materials,

product placement fees, media and advertising. Vending and

cooler equipment placement program support the acquisition

and placement of vending machine and cooler equipment. The

nature and type of programs vary annually.

Retail consolidation and the current economic environment

continue to increase the importance of major customers. In

2008, sales to wal-mart stores, inc. (wal-mart), including Sam’s

club, represented approximately 12% of our total net revenue.

Our top five retail customers represented approximately 32% of

our 2008 North American net revenue, with wal-mart (including

Sam’s) representing approximately 18%. These percentages

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include concentrate sales to our bottlers, which are used in

finished goods sold by them to these retailers. In addition, sales

to PBG represented approximately 8% of our total net revenue

in 2008.

OUR RELATED PARTY BOTTLERS

We have ownership interests in certain of our bottlers. Our

ownership is less than 50% and since we do not control these

bottlers, we do not consolidate their results. We have designated

three related party bottlers, PGB, Pepsi Americas, ins. (pas) and

Pepsi bottling ventures LLC (PBV), as our anchor bottlers. We

include our share of their net income based on our percentage of

income ownership in our income statement as bottling equity

income. Our anchor bottlers distribute approximately 60% of

our North American beverage volume and approximately 17%

of our beverage volume outside of North America. Our anchor

bottlers participate in the bottler funding programs described

above. Approximately 6% of our total 2008 sales incentives

were related to these bottlers our share of net income from other

no controlled affiliates is recorded as a component of selling,

general and administrative expenses.

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OUR DISTRIBUTION NETWORK

Our products are brought to market through direct-store-delivery

(DSD), customer warehouse and foodservice and vending

distribution networks. The distribution system used depends on

customer needs, product characteristics and local trade practices.

DIRECT-STORE-DELIVERY - We are bottlers and our

distribution operates DSD system that delivers snacks and

beverages directly to retail stores where the products are

merchandised by our employees or our bottlers. DSD enables us

to merchandise with maximum visibility and appeals is

especially well suited to products that are restocked often and

respond to in-store promotion and merchandising.

CUSTOMER WAREHOUSE - Some of our products are

delivery from our manufacturing plants and warehouse to

customer warehouse and retail stores. These less costly systems

generally work best for products that are less fragile and

perishable, have lower turnover, and are less likely to be impulse

purchases.

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FOODSERVICE AND VENDING - Our foodservice and

vending sales force distributes snacks, foods and beverages to

third-party foodservice and vending distributors and operators.

Our foodservice and vending sales force also distribution certain

beverages through our bottlers. This distribution system supplies

our products to schools, businesses, stadiums, restaurants and

similar locations.

OUR COMPETITION

Our businesses operate in highly competitive markets. We

compete against global, regional, local and private label

manufacturers based on price, quality, product variety and

distribution. In U.S. measured channels, our chief beverage

competitor, the coca-cola company, has a larger share of

carbonated soft drinks (CSD) consumption, while we have a

larger share of liquid refreshment beverages consumption. In

addition, the coca cola company has a significant CSD share

advantage in many markets outside the United States. Further,

our snack brands hold significant leadership positions in the

snack industry worldwide. Our snack brands face local and

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regional competitors, as well as national and global snack

competitors, and compete based on price, quality, product

variety and distribution. Success in this competitive environment

is dependent on effective promotion of existing products and the

introduction of new products. We believe that the strength of our

brands, innovation and marketing, coupled with the quality of

our products and flexibility of our distribution network, allow us

to compete effectively.

OUR RELATIONSHIP

Certain members of our board of directors also serve on the

boards of certain vendor and customers. Those board members

do not participate in our vender selection and negotiations nor in

our customer negotiations. Our transaction with these vendors

and customers are in the normal course of business and are

consistent with terms negotiated with other vendors and

customers. In addition, certain of our employees serve on the

boards of our anchor bottlers and other affiliated companies and

do not receive incremental compensation for their board

services.

PepsiCo MissionPage | 25

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“To be the world’s premier consumer products company focused

on convenience foods and beverages. We seek to produce

healthy financial rewards to investors as we provide

opportunities for growth and enrichment to our employees, our

business partners and the communities in which we operate. And

in everything we do, we strive for honesty, fairness and

integrity.”

Organizational Values

Our values reflect our aspirations - the kind of company we

want PepsiCo to be. We express our values in the form of a

commitment. Our commitment is:

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Sustained Growth is fundamental to motivating and measuring

our success. Our quest for sustained growth stimulates

innovation, places a value on results, and helps us understand

whether today's actions will contribute to our future. It is about

growth of people and company performance. It prioritizes

making a difference and getting things done.

Empowered People means we have the freedom to act and think

in ways that we feel will get the job done, while being consistent

with the processes that ensure proper governance and being

mindful of the rest of the company's needs.

Responsibility and Trust form the foundation for healthy

growth. It is about earning the confidence that other people

place in us as individuals and as a company. Our responsibility

means we take personal and corporate ownership for all we do,

to be good stewards of the resources entrusted to us. We build

trust between others and ourselves by walking the talk and being

committed to succeeding together.

Guiding Principles

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This is how we carry out our commitment. We must always

strive to:

Care for customers, consumers and the world we live in. An

intense, competitive spirit in the marketplace drives us, but we

direct this spirit toward solutions that achieve a win for each of

our constituents as well as a win for the corporation. Our success

depends on a thorough understanding of our customers,

consumers and communities. Caring means going the extra mile.

Essentially, this is a spirit of growing rather than taking.

Sell only products we can be proud of. The test of our standards

is that we must be able to personally endorse our products

without reservation and consume them ourselves. This principle

extends to every part of the business, from the purchasing of

ingredients to the point where our products reach the consumer's

hands.

Speak with truth and candor. We speak up, telling the whole

picture, not just, what is convenient to achieving individual

goals. In addition to being clear, honest and accurate, we take

responsibility to ensure our communications are understood.

Balance short term and long term. We make decisions that hold

both short-term and long-term risks and benefits in balance over

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time. Without this balance, we cannot achieve the goal of

sustainable growth.

Win with diversity and inclusion. We leverage a work

environment that embraces people with diverse backgrounds,

traits and different ways of thinking. This leads to innovation,

the ability to identify new market opportunities, all of which

helps develop new products and drives our ability to sustain our

commitments to growth through empowered people.

Respect others and succeed together. This company is built on

individual excellence and personal accountability, but no one

can achieve our goals by acting alone. We need great people

who also have the capability of working together, whether in

structured teams or informal collaboration. Mutual success is

dependent on treating everyone who touches the business with

respect, inside and outside the company. A spirit of fun, our

respect for others and the value we put on teamwork make us a

company people enjoy being part of, and this enables us to

deliver excellent performance.

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SWOT ANALYSIS

Strengths –

(a) Pepsico is a well-known brand in FMCG sector.

(b) Pepsico is offering many attractive sales promotion schemes.

(c) Pepsico is having good market share.

(d) Pepsico is offering Varity of tastes to consume.

Weakness –

(a) Lack of effective Supply Chain Management.

(b) Retailers are not getting proper schemes of Pepsi.

(c) Visis are out of order. In Jaipur town there is no appropriate

maintenance services available.

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(d) Retailers were complaining about cooling. Visis are not

cooling well mainly 300 and 400 liters.

Opportunities: -

(a) Large beverage market.

(b) Popular in youth as well as children.

(c) New taste can be introduced like apple, even health drink

also.

(d) In India the major competitors of Pepsi are tea, coffee, lassi,

in this case Pepsi can come in 100 ml or even 50 ml at Rs.3 or 4.

Threats: -

(a) Increasing competitors day by day.

(b) Poor publicity by competitors.

(c) Numberless innovation’s area in beverage industry.

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RESEARCH METHODLOGY

Sources of data-The methodology adopted for this research

study is based on primary and secondary data.

Tools of data collection-

Primary data-The primary data collected for the study includes

the data collected from Retailers in Jaipur and near to Jaipur

town through observations and questionnaire.

Secondary data-Secondary data was collected from the

company manuals, internet, and journal.

Sampling unit-The sampling unit is the basic unit containing

the elements of the population to be sampled. Sampling unit for

the study include different retailers of Jaipur and near to Jaipur

town. (Gold club retailers)

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Sample size: -The sample size includes 478 retailers.

Sampling method: -Selective sampling method.

METHOD OF PROJECT FINDINGS

Tabular forms- Observations and inferences are presented in

table, as it makes easy to understand the findings at glance than

going through the lengthy descriptions.

Graphs- Each finding is presented in the form of the pie charts

or bar diagrams after the analysis for easy references. The main

features of frequency distribution are conveniently

communicated by representing the frequency in the form of the

diagram, since the diagram is more easily and more quickly

understood than a collection of numbers.

Description – After the analysis of the collected data,

interpretations are also given at the bottom of the tables.

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GOLD/SPACE CLUB AUDIT

Gold club or space club is a group of approx 500 retailers of

Jaipur and near to Jaipur town. They all are having visis of

different size and type.

Gold club audit is a type of audit where a researcher judges

every retailers performance regarding visi. In this audit we were

having a format which has these columns.

Serial no: - In this Column we mention retailers number like 1,

2, 3, 4………………..

Name of outlet: -In it we put outlet name such as Joshi cold

drinks, Dev hotel etc.

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Location/Town: - In this we mention location of outlet such as

Ramganj, Jothwara, and Adrash Nagar etc. And in town we

mention Jaipur town.

Visi Size: - There are mainly three types of visis in PepsiCo

220,300,400 liters. But in some outlet they are having

160,1192litres visi size.

Rack Type: - There are two types of Rack first is Gravity and

second is PVC. A gravity rack is old visi and has iron body, in

other hand a PVC rack is new one, it has plastic body.

Visi Purity: - It means how much a visi is pure. If a visi has

only PepsiCo products it known as pure visi or if a visi has milk,

juices, butter or other company’s product like coca-cola, Thums

up it will be known as impure visi. In this Column we fill YES

or NO options.

Visi Charging: -It means how much visi is charged with

PepsiCo products. For example a visi is having only 2 bottles of

Pepsi and 1 bottle of Mirinda, in this case visi is not charged

full. In other hand a visi is full charged with its product then it

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will come under charged visi. We mention this detail by

percentage basis through observation method like 45%, 70% or

90% etc.

Visi POG: - It stands visicooler planogram.According to

company’s norms a visi should keep a certain sequence. This

sequence is different in various sizes. For example in 220 liters

size visi has 3 shelves;

In first shelf retailers should keep 1 row Pepsi My Can, 4 rows

of Pepsi (300ml.), 1 row of 7up (300ml.) and at last row for

Mirinda (300ml.)

In second shelf they should keep 2 row of Mirinda (300ml.), 2

row of Mountain Dew (300ml.), and 3 row of Slice (300ml.)

And in third shelf retailers should 2 row of Pepsi (500ml.), 1

row of Mirinda (500ml.), 1 row of Mountain dew (500ml.), 1

row of Pepsi (2 liters)

Rack purity: - It means how much a rack is pure. A visi has 2,

3 or 4 racks according to its size. If a rack is having products

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with certain size of PepsiCo according Company’s norms it will

be termed as a pure rack. In this we mention YES or NO

options.

Rack charging: - How much a rack or shelf is charged with

PepsiCo products according to norms. In this option we mention

Percentage.

No. of SKU available: - In this column we mention how many

brands of PepsiCo a retailer is having. For example Pepsi

200ml.300ml. , Pepsi My Can, Mirinda 200ml.2litres, Tropicana

(Mango, Apple), it means there are 08 SKU available.

FMO COUNT.

Pepsi FMO: -In this column we mention how much they

(Retailers) are having Pepsi stock. In this we put no. of bottles

like 50,100 0r 200 etc.

Mirinda FMO: - In this column we mention how much they

(Retailers) are having Mirinda stock. In this we put no. of bottles

like 50,100 or 200 etc.

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DATA- ANALYSIS

We divided Jaipur town in 06 locations. So that we can work

according area wise. We can mention these locations;

Location A: - This location includes Ramganj, Johri Bazaar,

Amer, Subash chowk, Ghatgate, Badi chopar, Choti chopar,

Tripoliya, Chaura Rasta, Chandi ki taksal, etc.

Location B: - This location includes Agra road, Gaunar,

Transport Nagar, Sethi colony, M.D. road, Rajapark, Jawahar

Nagar, Janta colony, Adrash Nagar, Brahmpuri, etc.

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Location C: - This location includes Chandpol, S.C. road,

Sindhicamp, Railway station, City parlor, M.I. road, Jalupura,

C-scheme etc.

Location D: - This location includes Malviya Nagar, Gourav

tower, Tonk road, Janta store, Gandhi Nagar, Bajaj Nagar,

Jagatpura, J.L.N. Marg, Barket Nagar, etc.

Location E: - This location includes Jothwara, Chomu road,

Ambawari, Ajmer road, Vaishali Nagar, Chitrkoot, Khatipura,

Jharkhand Mod, Shastri Nagar etc.

Location F: - This location includes Sanganar area.

There are 478 outlets in these locations, which come in Gold

Club. We can show no. of outlets according to area wise.

Locations – Chart

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LOCATION A:

Visi Size: - This location has 66 outlets. We can mention

various sizes of visis with their no. of outlets through following

table:

Visi Size No. of Outlets

400Lt. 27

300Lt. 20

220 Lt. 16

Others 03

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Rack Type: - As we know there are two types of rack,

(a) Gravity, (b) PVC. We can mention its result by

the table.

Rack type No. of outlets

Gravity 25

PVC 41

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Visi Purity, Rack Purity and Visi POG: - These are the most

important points in our research; we can present it by following

table.

Options Visi Purity Rack Purity Visi POGYes 40 42 06No 26 24 60

(No. of Outlets)

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Visi Charging and Rack Charging: - In Pepsi location we have 65

outlets, in this location we got these values, which we can mention by

following table.

Type 0% to 50% 51% to 75% 76% to 100%

Visi Charging 03 26 37

Rack Charging 07 29 30

(No. of Outlets)

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LOCATION B:

Visi Size: -In this location 85 outlets are situated, we got following values.

Visi Size No. of outlets400lt. 27300lt. 21

220lt. 35Others 02

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Rack Type: - Out of 85 outlets, we came at this result.


Gravity 38

PVC 47

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Visi Purity, Rack Purity and Visi POG: - These are the most

important points in our research; we can present it by following table.

Options Visi Purity Rack Purity Visi POG

Yes 47 49 7

No 38 36 78

(No. of Outlets)

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Visi Charging and Rack Charging: - In Mirinda location we

came to know following results.

Options 0% to 50% 51% to 75% 76% to 100%



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(No. of Outlets)

LOCATION C:

Visi Size: -In this location 87 outlets are situated, we got

following results.

Visi Size No. of outlets

400lt. 24

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300lt. 13

220lt. 41

Others 09

Rack Type: - As we know there are two types of rack, (a)

Gravity, (b) PVC. We can mention its result by the table.


Gravity 31

PVC 56

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Visi Purity, Rack Purity and Visi POG: - we can present it by

following table.


Yes 43 46 12

No 44 41 75

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Visi Charging and Rack Charging: - In Slice location, we

came to know following results.

Percentage 0% to 50% 51% to 75% 76% to 100%


Rack Charging

14 31 42

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LOCATION D:

Visi Size: -In this location 88 outlets are situated, we got

following values.


400lt. 29

300lt. 28

220lt. 27

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Others 04

Rack Type: - As we know there are two types of rack,

(a) Gravity, (b) PVC. We can mention its result by the

table.


Gravity 36

PVC 52

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following table.


Yes 43 46 12

No 44 41 75

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Visi Charging and Rack Charging: - In this location we came to

know following results.




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LOCATION E:

Visi Size: -In this location 114 outlets are situated, we got following results.


400lt. 45

300lt. 20

220lt. 40

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Others 09

Rack Type: - Out of 114 outlets we got 56 gravity rack and 58 PVC

rack.


Gravity 56

PVC 58

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following table.


Yes 73 76 19

No 41 38 95

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Visi Charging and Rack Charging: - In Mountain Dew location

we came to know following results.




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LOCATION F:

Visi Size:-In this location 38 outlets are situated, we got

following results.


400lt. 15

300lt. 07

220lt. 13

Others 03

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Rack Type: - Out of 38 outlets we came at this result.


Gravity 16

PVC 22

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following table.

Visi Purity Rack Purity Visi POG

Yes 26 26 9

No 12 12 29

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(No. of Outlets)

Visi Charging and Rack Charging: - In this location we came

to know following results.



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LIMITATIONS OF THE STUDY

(a) Difficult to contact the appropriate Retailers - It is

enigmatic task to collect the appropriate data to selective

retailers because we did not have proper address of outlets.

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(b) Difficulty in finding the information – Regarding visi’s

purity, rack purity, charging information, it was difficult to

observe because they are dynamic in nature.

(c) Time consuming- It was not an easy task as there is need

internal information about the concerned outlet and needs a

strong relationship building with appropriate person of the

outlet. We had to cover long distances like Gaunar, Kishangarh,

and RIICCO area.

(d) Lack of tools and techniques- We were not having any type

of tools and techniques in deciding visi purity, rack purity,

charging percentage. In this case we observed them by personal

observation method.

(e) Many times the concerned respondents from whom the

information has to take were having time constraints.

Economical Utility of Study

If we look the other side of picture, we can see economic utility

of our study. During our survey, we were also collecting

average volume sales data through a Questionnaire (see it at

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page no.74). After collecting this data from 100 outlets (Gold

club Retailers) we came to very strange results. Before

presenting those results, we can mention some assumption,

which we took during this survey.

Assumptions:

(a) Retailers gave right information regarding their

volume of sales.

(b) Researchers are very much efficient to calculate (observe)

without any tool.

(c) There is possibility that this positive relationship is only a

coincident.

(d) In our study, we assumed that one retailer is having one

Pepsi Visi

Now we can show results by following tables and diagrams.

(Table: 1)

S.No. Rack Charging Average No. of Bottles Sold per Month

(300ml. and 2 litter)

1 50% to 70% 250-300

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2 70% to 90% 350-400

3 Above 90% 450-500

As we can see in our diagram SS curve is Positive that tells that

if we increase Rack and Visi charging then Number of bottles

sold in a month also increases. This result shows an important

combination between sales and purity. In economics language

we can say there is a positive relationship between sales and

Purity (Rack & Visi).

(Table: 2)

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Average No. of Bottles Sold Per Month

Rack/Visi Charging

SS Curve

31

S.No. Rack & Visi Purity Average No. of Bottles Sold per Month


1 No 300-400

2 Yes 400-425

In this table we are trying to show that there is also positive

relationship between Purity and volume sold, But this time SS

curve is around 25 to 30 degree, it means if there Purity is

increasing then sales will increasing but not so much. We can

show it by following diagram:

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SS Curve


Visi & Rack Purity

30

In our diagram, we can see SS curve is still positive, but

Increment in Number of Bottles is not as much as Purity

increment.

Table: 3

S.No. No. of Brands of

PepsiCo(beverages)

Average No. of Bottles Sold per Month


1 1-3 150-200

2 4-6 300-350

3 7-9 400-450

4 Above 9 500-600

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This diagram is telling us that there is a strong positive

relationship between no. of Pepsi brands and Average no. of

bottles sold per month. In other words, we can say that if

retailers are having more brands there are more chances of high

sales. We can see arrow keys are not similar.

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SS Curve


30

No. of PepsiBrands

FINDINGS

It was a great experience to accomplish this task. After

completing this task we got these findings: -

In some areas, retailers were not satisfied with supply. For

example Sindhi colony, Agra road etc.

According to retailers, they are not getting proper scheme of

Pepsi. In Amer road this problem was very common.

In some shops visis are out of order, these area are Main city

and Agra road.

In some shops, visis are not available. According to

company’s data some outlet should have visi, but in realistic

world they did not have visis.

Most of retailers were complaining about cooling. This

problem mainly is occurring with 300litres and

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400litres.According to them 165 liters visi is perfect for

cooling, but it is small.

In some shops, retailers are not using visis rightly. They are

using it for their personal use and keeping other products like

milk, butter and other soft drink.

Some of them were unhappy with replacement of products.

Some retailers were saying that there is no good replacement

plan in Pepsi; they have to wait 3-4 weeks for it.

The popularity of Pepsi is increasing day by day. Its new

products like Pepsi My Can, Nimbooz are getting success.

PepsiCo schemes are very popular. Now days its Pepsi gold

coin is on its peak.

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RECOMMONDATION

Supply problem should be solved immediately: - As we

mentioned earlier many of locations are suffering from lack of

supply. Either they are not getting all types of brands or at particular

time. Mainly these locations are Agra road, Amer road and Sindhi

colony etc. We can recommend this to company so that retailers

can easily get their desired products at right time.

Recommendation to the company for good replacement policy: -

According to the retailers, they are not having good replacement

policy from company side either company is taking very long time

or not changing them.

Transparency between company and retailers:-For the beneficial

of both side it is necessary that a clear picture will come in the play

mainly in the schemes related problem it quite should be

transparent.

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Target the untapped market: - Large part of market is still

uncovered .Basically in the villages Pepsi have to fight with local

brands like Lijjat, Mahak etc. These local players play with low

price.

Regular checking of visis: -There should be a schedule for

checking regularly of visis. We can suggest that it should be done

either weekly or fortnightly.

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Questionnaire

1. How many visis do you have?

(a) One

(b) Two

(c) More than Two

2. How many visis of Pepsi do you have?

(a) One

(b) Two

(c) More than Two

3. How many Pepsico brands do you have?

(a) 1-2 (c) 6-9

(b) 3-5 (d) Above 9

4. What is the average no. of bottles (300ml, 2liters) sale in a month?

(a) 100-150 (c) 300-450

(b) 150-300 (d) 450-550

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(e) Above 550

Bibliography

S.No. Name of Author Name of Book Publication Year

1. Kothari, C.R. Research Methodology Wishwa

Prakashan

(New Delhi)

1985

2. Sadhu,A.N. and

Singh,Amarjit

Research Methodology

in Social Sciences

Himalaya Publishing

House (Bombay)

1980

3. Ghosh, B.N. Scientific Methods and

Social Research

Sterling

Publication (New

Delhi)

1982

4. Gopal, M.H. Research Reporting in

Social Sciences

Dharwar

Publication

(Karnataka)

1965

5. Tandon, B.C. Research Methodology

in Social Science

Chaitanya

Publishing House

(Allahabad)

1979

Important Search Engine:

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www.pepsico.com www.google.com

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http://www.google.com/

http://www.pepsico.com/

Sharad Vijayvargiya@Pepsico

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