Upendra Kumar Shaw Project

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MERCHANDISING AND MARKET SHARE of pepsi and coke An Internship Training Report

BY :- SMV BEVERAGES PVT . LTD.[ JAMSHEDPUR] [A franchisee of Pepsico India Ltd.]

2010

UPENDRA KUMAR SHAW INSTITUTE FOR TECHNOLOGY AND MANAGEMENT WARANGAL , HYDREABAD 2009-2011

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CERTIFICATE

This is to certify that the project titled “MERCHANDISING AND MARKET SHARE OF PEPSI AND COKE ”

at SMV Beverages Pvt. Ltd is an original work of Upendra Kumar Shaw , a student of Institute For

Technology and Management ,Warangal and is being submitted in partial fulfillment for the award of

PGDM “Post Graduate Diploma in Management”.Degree of Institute For Technology and

Management. The report has been submitted earlier to this University or to any other

University/Institution for the fulfillment of the requirement of the course of study.

Mr. Mubasheruddin Ahmed.

Academic Guide

Session : 2009-2011

Date:

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Declaration

I, Upendra Kumar Shaw , doing PGDM from Institute For Technology and Management , Warangal

and have done summer internship from SMV Beverages Pvt .Ltd. Jamshedpur from dated 30/4/10 to

30/6/10 on topic “Merchandising and Market share of Pepsi and Coke” do hereby indemnify my

research work to be authentic and original in all respects of the process carried out in this project

Under any evitable circumstances, if my project could be scrutinized and screened which evades of

copying, I am liable for any demarcation /variation of marks whatsoever my guide of this project

deems fit.

DATE:

PLACE: SIGNATURE:-

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Acknowledgement

“Little drops of water makes a mighty ocean”. In the beginning I was tensed being in a new place and

new area. But I take this privilege to express my hearty gratitude and thanks to S.M.V.Beverages Pvt.

Ltd., “Franchisee of Pepsi Co.” for taking me as a Summer Trainee and extending us full support and

co-operation towards the completion of this project.

I express my profound gratitude to Mr. Vidyadhar (Human Resource Manager), Mr. Subrato

Chakraborty (Territory Development Manager), Mr. Arbind Tiwari (Marketing Development

Coordinator,Jamshedpur), Mr. Dhananjay Yadav(Marketing Executive), Mr. Kamal (Customer

executive), Mr Sonu (Merchandiser,Jugsalai) for their kind co-operation and guidance during my

summer internship project .I am also thankful to them for their support and all kind of corporation in

collection of information and giving suggestion to authenticate this project.

I would also like to convey my gratitude to my Director Dr. T.Dayakara Rao faculty guide

Mr.Mubasheruddin Ahmed (Internal Faculty Guide),Mr. Satish Chandra and all faculty members of

ITM warangal who made me walk all the steps of this project, intricately, and helped me in

formulating the entire framework of this analytical research.

I express my Gratitude to all my friends who directly or indirectly helped me in this project. And last

but not the least. I am grateful to all the dealers and the public of Jamshedpur for their kind support

because only due to their co-operation the project was successfully completed and it was a good

learning experience working with Pepsi to understand the real life working of the company.

Upendra Kumar Shaw

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Executive Summary

Theory is important because it enhances our understanding of business phenomena and helps

managers to think about what they should do. Summer training or internship training provides

opportunities to apply this theory into the real business.

In the project the nature of research is exploratory research whereby the efforts have been made by

executing the research in Jamshedpur regions. A systematic as well as well-designed approach has

been adopted while conducting research about market characteristics.

It is followed by the research methodology which is adopted has been defined with the of collected

data, a detailed interpretation about the company has been given there, the product profile is defined

covering the types and different flavors of the PEPSI CSDs. The next step was defining the sampling

design where by the sample size was taken for the dealers and the target area was Bistupur and

Jugsalai. Jamshedpur to facilitate the research work on questionnaire method was adopted for the

collection of the data as a primary research whereas the secondary data was collected from different

books, company library and the other trade / business websites.

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CONTENTS OF PROJECT

Part -1( INTRODUCTION) PAGE NO

1. BACKGROUND OF STUDY (COMPANY PROFILE AND INDUSTRY TRENDS) 9

a. History of Pepsi-Cola Industry 10

b. Mission And Vision 12

c. Branding of Pepsi 14

d. Soft drinks Industries in India 15

e. Company profile of SMV Beverages Pvt. Ltd 21

i. Introduction of soft drinks in Jamshedpur 22

ii. Chronology of achievements 23

iii. Vision and mission 23

iv. Organization chart of SMV Beverages Pvt .Ltd. 25

v. Product profile and production process. 29

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Part -2( TRAINING REPORT)

2. OBJECTIVE OF STUDY 44

3. RESEARCH DESIGN AND METHODOLOGY 46

4. MARKETING ACTIVITIES AT SMV BEVERAGES PVT. LTD. 49

a. Promotional activities 51

b. Distribution channel 54

c. Advertisements 60

5. MERCHANDISING AND MARKET SHARE OF PEPSI AND COKE 68

a. Merchandising policy 69

b. Visicooler planogram 71

c. Market survey 77

6. DATA ANALYSIS AND INTERPRETATION 80

7. SWOT ANALTSIS 86

8. FINDINGS AND CONCLUSION 88

9. RECOMMENDATION 89

10. APPENDIX 91

11. BIBLIOGRAPHY 92

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PART-1

INTRODUCTION

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INTRODUCTION TO THE STUDY

“Marketing is a basic that, it can’t be considered a separate function. It is the whole business seen from the

point of view of its final result that is the consumer point of view”.

Peter Drucker

Decades of sixties were for Engineers, seventies for Doctors, eighties for CA’s and the present is for MBA’s.

The world economy has undergone a radial transformation in the last two decades Geographical and cultural

distance have shrunk significantly with the improvements in the production, transportation and

communication. These advances have permitted companies to widen substantially both these markets and

their supplier sources. And thus the role of marketing becomes wide.

Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of

marketing is “meeting needs profitably.” Marketing is tricky, however, and it has been the Achilles’ heel of

many formerly prosperous companies. But making the right decisions is not always easy. Good marketing is no

accident, but a result of careful planning and execution.

The soft drink industry is no exception and is one of the most intensely fought industry with the two major

competitors PepsiCo and Coca-cola. This industry can be characterized by words like price wars, effective

distribution strategies, market share, sales promotion strategies etc. My field of study will delve upon the

following aspects viz.

Retailer’s participation in the selling process.

Penetration of different products of Pepsi in comparison to its competitors.

A number of variables come into play when we consider the sale of C.S.D. products. The basic reason for this is

seasonal affect on purchasing the product, slowly resulting in the consumer loyalty and the relationship

between dealers, distributors and the company.

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Some other important variables that affect the C.S.D. products are:-

Visibility of the product

Feasibility of the product

Availability of the product

Perceived quality of the product

Distribution channels used

BACKGROUND OF THE STUDY

INDUSTRY

History of Pepsi-Cola Industry.

The Pepsi-Cola story itself begins with a drugstore in New Bern, North Carolina, and a

pharmacist named Caleb Bradham. Bradham's aim was to create a fountain drink that

was both delicious and healthful in aiding digestion and boosting energy. It would be

free of the impurities found in many bottled health tonics, and it would contain none

of the stronger narcotics often added to popular fountain drinks.

As most pharmacies in 1896, Bradham's drugstore

housed soda fountain where the small-town

clientele would meet to socialize. Bradham's

establishment even featured a kind of primitive jukebox, which for

a nickel would entertain the listener with the latest musical

selections rendered by violin or piano or both It was at such

convivial gatherings that Bradham would offer his latest concoction. Over time, one of his recipes

became known as Brad's Drink. A member of the press declared, "It has sparkle and just enough acidity

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to make it pleasant." Soon its popularity would exceed the boundaries of New Bern The cellar of

Bradham's drugstore served as the original site of Pepsi-Cola syrup manufacturing. Electing to start his

new business on a small, manageable scale, Bradham based his operation on familiar territory.

Ingredients were hauled downstairs to cramped quarters where they were mixed together and then

cooked in a large kettle. The syrup was subsequently poured into one-gallon jugs and five-gallon kegs

to be shipped to customers. By 1902, the demand from surrounding drugstores increased so

dramatically it dawned on Bradham that Pepsi-Cola was something special. On December 24, 1902, he

filed incorporation papers with the state of North Carolina; in these, he indicated his plans for

corporate branches in Virginia, Maryland, Pennsylvania, and New York. PepsiCo, Inc. is currently one of

the most successful consumer products company in the world with annual revenues exceeding $30

billion and has more than 480,000 employees. PepsiCo, Inc. began as a successor to a company

incorporated in 1931, known as Loft Inc. Once known as PepsiCo Cola, the company expanded its

business and adopted its current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger

dramatically increased PepsiCo's market potential and set the foundation for the company's

tremendous growth. PepsiCo’s products are recognized and are most

respected all around the globe. Currently, PepsiCo divisions operate in three major US and

international businesses: beverages, snack foods, and restaurants. In each of these businesses, PepsiCo

has attained a leadership position as being the world leader in soft drink bottling, the world largest

snack chip producer, and the world largest franchised and company operated restaurant system. The

corporations increasing success has been based on high standards of performance, marketing

strategies, competitiveness, determination, commitment, and the personal and professionalintegrity of

their people, products and business practices.

PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New

York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of

America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the

Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting. The

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collection of works is focused on major twentieth century art, and features works by masters such as

Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro

and Claes Oldenberg. The gardens originally were designed by the world famous garden planner,

Russell Page, and have been extended by François Goffinet. The grounds are open to the public, and a

visitor's booth is in operation during the spring and summer.1990 saw the coming of the multinational

company PEPSI entering the Indian market. 11 years after the exit of Coca Cola. It had name, fame and

edge of being one of the best in the game and it also offered stiff competition to Parle and Coke. Pepsi

Cola Company founded by CALEB BRADHAM in 1890 at North Carolina in USA. Now it is ranked 86th

(1998) in the world with the asset of around $25000 million, having its head quarter at ATLANTA. Its

CEO is ROGER ENRICO and Pepsi co. India holding chairman is MR. RAJIV BAKSI. Pepsi Co. India’s HQ is

at Gurgaon. Presently is operating in 196 countries. In India it has 34 Bottling Plant of them 8 are COBO

and 26 are FOBO of which one in Tripty drinks Pvt. Ltd.

“I want people to look at pepsico and think of it as a model of how to conduct a business. We call it…

Performance With Purpose." - Indra .K.Nooyi

Our Vision and Mission

At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to do, but

the right thing to do for our Business.

Our Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate – environment,

social, economic – creating a better tomorrow than today."Our vision is put into action through programs and

a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder

value by making PepsiCo a truly sustainable company.

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Our Mission

Our mission is to be the world's premier consumer products company focused on convenient foods and

Beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and

Enrichment to our employees, our partners and the communities in which we operate. And in everything we do,

we strive for honesty, fairness and integrity.

Performance with Purpose

At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on

society – delivering what we call Performance with Purpose.Our approach to superior financial performance is

straightforward – drive shareholder value. By addressing social and environmental issues, we also deliver on our

purpose agenda, which consists of human, environmental, and talent sustainability.

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Pepsi works on ‘SMART’ formula:

SPECIFIC- Helps the sales force understand exactly what is expected out of them.

MEASUREABLE- ensure that management can track individuals & team performance.

ACHIEVABLE- increase the level of challenges & motivation within the sales force.

RELEVANT- translates the company’s initiatives into market place execution.

TIME BOUND- avoids dragging and ensure meeting deadlines.

BRANDING OF PEPSI

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Soft Drink Industries in India.

A soft drink is a non-alcoholic beverage. It is artificially flavored and contains no fruit or pulp. India with

population of more than 100 crores is potentially one of the largest consumer markets in the world

after China. The consumer market can be defined as the market for products and services that are

purchased by individuals as house holds goods for their personal consumption. Soft drink is a typical

consumer product purchased by individuals to quench thirst and secondly for refreshment. Searching

for the point of Indian soft drinks we first document on Gold Spot, this was the first brand soft drink in

India. It was introduced by PARLE during later part of 40’s.

Cola giant, Coca-Cola was the first foreign soft drink to be introduced in India in 1965, Coca-Cola make

a very good beginning and dominated the whole scheme right from the word go. It (Coca-Cola) faced

no competition at that time. COCA COLA entered India in the year 1993 in collaboration with PARLE

INDIA LTD.

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The marketing people did not even receive to publicize Coca-Cola for it sold first like probability not-

cakes. This extraordinary success of soft drinks can be attributed to the following factors:-

Absence of contemporary competitive brand.

Euphoric image built up in the Western countries proceeded the entry into Indian

Market; and

Indians are very found by nature of foreign goods, services etc. due to prolonged foreign

rules.

Parle Exports (P) Ltd, later in 1970 introduced Limca, Lemony Soft drinks. Before Limca introduce, they

had tentatively introduced Cola, Pepino, which they had to soon withdraw in the face of battering

confrontation with Coca-Cola.

Three of four groups of Indians companies who had the required production capacity started their own

brands of Cola, Lemon, Orange, but failed to achieve their goal on a national basis. India always has

love and hate relationship with MNC’s which gave a significant opportunities to soft drink industries in

India when Coca-Cola decided to windup its operation in 1977 rather than bowing to the Indian

government insisting on:-

Dilution of equity, as the government felt that lots of foreign currency was being wasted.

Manufacturing of the top-secret concentration in India.

Disclose of the chemical composition of the essence.

This left a large vacuum in the popular soft drink market, and a vista was opened to any company with

the requisite, technical, marketing and organizational skills.

The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian Soft Drink. New soft

drink in the form of Tetra pack entered the market among Frooti, Jump-In and Treetop were the

prominent once. Till 1977 their equipped bottling plants and the distribution network a longing to be

of no use. It took them one year to develop new formula to survive and gradually came up with Campa,

Lemon, Orange and Cola that order.

However Parle, the pioneer in the soft drinks, blazed its way to national prominence with their product

“Thumps Up” bearing the slogan “Happy Days Are Here Again”. This particular slogan helped to win

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over the loyalists or addicts to Coca-Cola, who was in the state of “Cola Shock” or Cola Depression.

Soon the Indian Soft drink industry started at a phenomenal rate, and all Parle Products Gold Spot,

Limca and Thumps Up became the brand leader in their own segment.

In spite of all these, the drink market still has large gap, as claim by soft drink manufacturers. To fill

these gaps there are many soft drinks concentrate and squashes flooded the market. The Indian soft

markets basically offered three flavours i.e. Orange, Lemon and Cola

Nature of market competition & strategy.

Pepsi – the Indian experience Previously there were two ads. Tags”Yehi Hai Right Choice Baby”, “Nothing Official about It” & “Yeh

Dil mange More”, which immediately ring a Bell – it’s to be a Pepsi. But today this ad. Tag has been

changed and now it’s “Yeh hai yougistaan meri jaani”.

Pepsi is a short span of its operations in India has found a place in hearts and minds of the Indian

Consumers. The success has primarily been due to the innovate and passionate Indian team which has

been built over the years. Pepsi is a trendsetter managed and run by Indians, where important

decisions are taken locally.

Pepsi started its operations in India in 1989 and since Pepsi Co. has set up a fully integrated operation

India viz. manufacturing, research and development, marketing, distribution and franchising covering

fruit/vegetable processing, export, snack foods and beverages. In 1993 Pepsi Co. set up a hold

company to further accelerate growth the future through new initiatives and joint ventures. Pepsi Co.

fully committed to India and the national objective of development of technology and accelerating

exports and employment. It has brought in over $500 million in foreign exchange as well as technology,

which is used for its global network by way of royalty, know how of dividends.

Pepsi Co. has a turnover $25 billion, half of which comes from beverages and the other half from the

snacks foods divisions. The beverages arm of the Pepsi Co. is Pepsi Cola Company and the snacks foods

company is called Frito – Lay Inc. The year 1998 is the centennial year of Pepsi.

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Beverages:

Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur, Punjab, with an investment of

$ 5 million the state of the art Plant houses a world – class laboratory where soft drinks from all over

the world are tested. This concentrate plant supplies Pepsi, 7Up, Team, Miranda, Orange, Apple &

Lemon flavors to all the Pepsi Bottling plant in South Asia.

Pepsi has 40 Bottling plant in India, out of which 16 are company owned and 24 are owned by Indian

franchisees, Pepsi Co. has invested heavily on up gradation of these bottling plants and has put 5 green

fields projects in backward areas such as Jainpur and Bazpur in U.P. Bharuch in Gujarat, Sonarpur in

West Bengal and Naclamangala in Karnataka.

New project are coming up in Maharastra and Tamilnadu. In addition to the Company’s own Bottling

Operations (COBO), Pepsi has 24 Franchisee Owned Bottling Units in India. These franchisee

manufacturers are also planning to install substantial additional capacities. In last two years Pepsi Co.’s

franchisees have put new bottling plant at Jaipur, Bhopal, Hajipur (Bihar), Guntur (A.P) and Gawahati

(Assam) with further investments. Pepsi Co.’s franchisees are amongst the best in the Pepsi world and

the 1998 two Indian Franchisees were chosen for being the Bottler of the Year amongst all

International Bottlers.

Juices:

Pepsi Co. plans to launch juices in a bog way in India, there by helping the farmers in fruit

procurement. Pepsi Co. Agriculture Scientists has undertaken research on Mango, Guava and Oranges

and these fruits would be the priority area for the juice launch in India. Presently Pepsi has one juice

brands Slice, which are presently mango juice brands. Pepsi Co. also has bottling lines in most of the

plants.

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Developing Sports:

Pepsi today is one of the main sponsor’s related activities in India and has counted to promote

upcoming new players Cricket, Hockey and Football. In Mohali, Pepsi has developed a Pepsi Cricket

Academy, which would develop over 500 Young Cricket enthusiasts in next five years. Similarly Pepsi

cricket coaching camps and clinics are held to coach young boys in North & South.

Community Relation:

Most of the bottling plants are located in backward areas, thereby giving huge employment

opportunities in these areas. Pepsi as a responsible company undertakes social projects in and around

the bottling plants. These include supports to the education centers, sponsors, inoculation camps,

providing free health checkup, initiating sanitation, drives, promoting literacy drives and helping village

to put up bus shelter etc.

Revenue Generation

It is estimated that Pepsi Co. and its franchisees generates over Rs. 500 Crores (in 1997) to the

exchequer by the collection of excise duty and sales tax.

Real Consumers

According to per day selling report of the Pepsi product we can easily search the real consumers of the

company. It is a FMCG product so general people to high-class people drink it. As temperature of the

environment is grow its selling is automatically increase. We can see that Pepsi Product is present

everywhere because of its good distribution channel. In every Pan shop to a good restaurant we can

easily get the chilled Pepsi Product. Pepsi Product has launched its different flavors to attract the

consumers. Company knows that what people want to drink.

Purchase Method:

As we can see that Pepsi Product is present everywhere, so every people can buy it. Pepsi has launched

its product in different range for convenient to every class people. The 200ML & 300ML bottle is

available for single person and 500ML, 1250ML, 1500ML & 2000ML pet is available for family pack.

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PepsiCo India's agri-partnerships with farmers help farmers across the country grow and earn more

PepsiCo's involvement in Indian agriculture stems from its vision of creating a cost-effective, localised agri-base in India by leveraging farmers’ access to world class agricultural practices. PepsiCo India worked with farmers and State Governments to improve agri sustainability, crop diversification and raise farmer incomes. PepsiCo helped transform the lives of thousands of farmers by helping them refine their farming techniques and raise farm productivity, and customized solutions to suit specific geographies and locations.

The most ambitious project is a joint programme, launched in 1989, between PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana and Punjab Agro Industries Corporation (PAIC) in Chandigarh. The programme focuses on evolving agricultural practices to help Punjab farmers produce internationally competitive products. Over the last five years, PepsiCo has also collaborated with the Thapar Institute of Technology to develop a high quality potato seed programme.

PepsiCo was a pioneer in the concept of contract farming under which the company transfers agricultural best practices and technology and procures the produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acre research and demonstration farm in Punjab to conduct farm trials of new varieties of tomato, potato and other crops.

The programme, which includes seed production, has successfully evaluated the following crops:

several varieties of basmati rice more than 200 varieties and hybrids of chilli 25 varieties and hybrids of corn more than 60 varieties of peanut more than 100 varieties and hybrids of tomato.

Additionally, the development of new tomato varieties has helped increase total annual production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have more than tripled from 16 tons to 54 tons per hectare.

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INTRODUCTION OF SOFT DRINK IN JAMSHEDPUR

Later Charan Singh is credited with initiative to set up Soft drink industry in the city. He was a resident

of Phagwara, Punjab and he used to sell soft drink in carts. Domestic tensions forced him to march to

Jamshedpur 50 years ago to seek a living for him. Then he set up his own machine and started bottling

without any brand name. Today his son Mr. Sunder Gurudev is carrying out the legacy, which his father

had left behind. This plan operates only 3 months (summer). Even today Jamshedpur remembers the

great exponent THANDAWALA.

The credit of establishing Jamshedpur in the soft drink map goes to late Dharamchand Narbheram

Kamani. During the course of his business trips he was struck with the idea of setting up of a soft drink

industry in Bihar. June 1967 was significant for soft drink industry in Jamshedpur.

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CHRONOLOGY OF ACHIEVEMENT

* First plant to achieve 100% result on Pepsi norm (Japan) and got an Award.

* Ist plant to pack large packs---500ML.

* Commissioning of Kamani Foods- 1988

* Started Operating for Bottling Pepsi Products as a Franchise Operation (FOBO) Under Kusum

Kamani-1990

* First Plant to Achieve 100% Result on Pepsi Norm and got an Award-1991

* Excellence in Quality award-1992

* IQA Bronze Cash Award -1993

* IQA Bronze Cash Award -1994

* In 2001 received IQA Gold status.

* In 2002 received IQA Bronze Award

* In 2003 new pet Plant capacity of 60 BPM commissioned.

* In 2004 received IQA silver Award.

* Achieve ‘Best Plant Team’ in 2004

VISION

“Description of something (an organization corporate culture, a business, a technology, an activity)

in the future” -Philip kotler.

S.M.V. Beverages Pvt. Ltd. Says its Vision “S.M.V. Beverages Pvt. Ltd enters the next few years with

the confidence of a learning knowledge based and happy organization”.

We will establish our selves as a supplier of choice by delighting our customers with our service and

our products. In the coming decade, we will become the most cost competitive Beverages Plant and so

serve the community and the nation.

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MISSION

“Essential purpose of the organization, concerning particularly why it is in existence, the nature of

the business it in, and the customers it seeks to serve and satisfy”

-Thomson

S.M.V. Beverages Pvt. Ltd. derive their mission statements from a particular set of tasks. They are

called upon to perform in the light of their individual, national or global priorities.

MISSION STATEMENT OF S.M.V. BEVERAGES PVT. LTD.

Consistent with the Mission and values of the founder, Late D.N.Kamani. S.M.V. Beverages Pvt. Ltd.

Strives to strengthen India’s industrial base through the effective utilization of men and materials.

The means envisaged to achieve this are high technology and productivity, consistent with modern

management practices.

S.M.V. Beverages recognizes that while honesty and integrity are the essential ingredients of a strong

and stable enterprise, profitability provides the main spark for economics activity.

Overall, the company seeks to scale the heights of excellence in all that it does in all atmospheres free

from fear and thereby reaffirms the faith in democratic values.

PHILOSOPHY

The Philosophy of S.M.V. Beverages Pvt. Ltd. Establishes the value, believes & guidelines for the

manner in which the S.M.V. Beverages Pvt. Ltd. Is going to conduct its business. Usually the officers of

the S.M.V. Beverages Pvt. Ltd. Lay down the corporate Philosophy, which an organization follows in its

strategic and operational activities. Such a Philosophy may not be consciously and formally stated but

may gradually evolve due to the officer’s actions.

Generally an officer has a perception of the type of organization that he wants his company to be the

executive committees of S.M.V. Beverages Pvt. Ltd.

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GOAL SETTING

Goals denote what an organization hopes to accomplish in a future period of time. They represent a

future state or an outcome of the effort put in now. A broad category of financial and non-financial

issues is addressed by the goals that a firm sets for it. P.S. Kumar, Director of S.M.V. Beverages Pvt. Ltd.

expressed the purpose of his organization as “our goal is to be the most competitive and progressive

institution in our (i.e., Beverages) industry.” The company stated goals were “growth, innovativeness,

high profits as a barometer of efficiency highly involved employees distinctively charged with pride…”

The main goals of S.M.V. Beverages Pvt. Ltd. is as follows:-

Growth had been achieved in terms of customers & average business per employee, Good product

quality & service.

Innovativeness was reflected in a number of new schemes.

A high Profit between its competitors and become industry leader.

Employee involvement had been sought through the delegation of authority and devolution of

power to grassroots levels through a change in administrative structure and the creation of circle.

STRUCTURE OF THE ORGANIZATION

For the every concern a structure is necessary on which the complete organization should be founded.

The existence of a structure as obvious in every organization whether planed/unplanned or ill planed.

To have a structure is not a choice of the organizer. The choice is only of the form and pattern of the

organization. Planed organization structure may be proved logical clear- cut and streamlined in order

to meet the present requirement.

Otherwise it will merely be a makeshift arrangement and the management is rendered difficult and

ineffective because organizational structure affects everyone in the organization. A good

organizational structure facilitates management’s management and the operation of enterprise and it

encourages growth. It helps organization to reach its common goal. In order to make the organizational

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structure more effective one structure that can meet the demand of various factors namely

environment, technology, size and people.

S.M.V. Beverages was taken over by Mr. S.K.Jaipuria in March1999 from Mr.D.N.Kamani along with

Rushab Marketing Limited, a marketing unit. M/s S.K.Jaipuria running this plant very successfully.

He is very much enthusiastic to increase the production and sales and to capture the Whole marker of

South Bihar, now Jharkhand State. He established another plant in the name SMV Beverages,

Jamshedpur and increased production from this new plant is 600 bottles per minute.

S.M.V. Beverages Jamshedpur has a management boars headed by Mr.S.K.Jaipuria. He holds the top

position but the overall policies regarding managerial decision and all the executive function are

performed and look after by the Director Mr.P.S.Kumar .He has been given the power and authority to

manage the company affairs. Therefore, Mr. P. S. Kumar can be recognized as the Chief Executive. The

Director look after all the functional department like production, sales, accounts, personnel, purchase

etc. Every departments sends report directly to the director and are responsible to him in sense of

working . Inspite of this all department are in direct control of the director. Plant superintendent is the

head of the production department. He look after production, that is bottling process, inspection,

storage of new materials and though there is a quality control manager. The controller of accounts

heads the accounts department.

Manager (Personal & Administration) looks after the function of administration, industrial relation,

legal jogs security, welfare etc. The purchase officer In charge of all purchase activities of concern.

S.M.V. Beverages, Jamshedpur is proud of winning Pepsi I.Q.A (Gold), International Quality Award,

Gold for the year 2001.

S.M.V. Beverages also setup a PET bottle plant in March 2003. it has a capacity of bottling 40 PET

bottles per minute. It is bottling 500ml, 1.5 lt., 2 lt. PET bottles of different flavors namely Pepsi,

Mirinda, 7up, Mountain dew,Slice. At present SMV Beverages (Jamshedpur) (a unit of SMV Agencies (P)

Ltd.) has following Sister concerns.

Steel City Beverages Pvt. Ltd

27

Hyderabad Marketing Company

Earlier it had M/s Kamani Food which was only bottling SLICE and in 2004. M/s Kamani Food was

merged with SCBPL now SCBPL is producing SLICE along with other brands of PEPSI. It is mainly bottling

300ml and 250ml,1.2 lr (Slice)

Core Capabilities

Product Leadership:

Refers to the ability to develop creative, premium products through specialized new

technologies.

Market Leadership:

Refers to the ability to achieve the "PEPSI brand is No. 1" goal backed by its formidable

market presence worldwide.

People Leadership:

Refers to talented people who perform excellently by internalizing and practicing

innovations.

Corporate Culture:

Though a company implements perfect management strategies and boasts of outstanding

and talented people, it should have an appropriate corporate culture to unleash the

power of these capabilit ies.

No 'No'- Challenge: We foster a corporate culture whereby we suggest an alternative before

saying "no" and aggressively work towards fulfilling our goal.

'We' not 'I': We pursue a corporate culture whereby we embrace a strong teamwork.

Fun to work: We create a workplace where individuals' creativity and freedom are

respected and working is made fun.

28

DIRECTOR

(SMV BEVERAGE)

Logistic

Dept.

Plant Mgmt. Personal

Dept.

Purchase

Dept.

PMTMI Scooler Dept. Finance Dept.

Personal

Manager

Personal

Officer

Staff

Security DEPT.

Production

Manger

Supervisors

Staff

Lab

Purchase

Manager

Supervisors

Staff

Store

Equipment Manager Finance

Manager

Account

Executive

Accountant

Logistic

Manager

Staff

FOLLOWING ARE THE MAJOR CONSIDERATIONS

Clear lines of authority

Adequate delegation of authority

Minimum managerial level

Unity of directors

Application of ultimate responsibility

Span of control

Simplicity

Flexibility

Proper emphasis on shift activities.

ORGANIZATION CHART OF SMV.BEVERAGES JAMSHEDPUR

29

PEPSI

PRODUCTS

PROFILE

30

PRODUCT PROFILE

The products manufactured and supplied by SMV Beverages Pvt. Ltd, are very limited in range as it is

not independent to diversify its products when required. This is because it is a unit of PEPSI FOODS

LIMITED, which supplies the concentrates for different brands of soft drink.

These are:-

PEPSI (cola flavour)

7 UP (Clean lemon flavour)

MIRINDA (orange)

MOUNTAIN DEW

SLICE(mango flavour ,having concentration of ALPHANSO & TOTAPURI Mango 30:70 )

NIMBOOZ(Indian lemon flavour)

The chief consumers are young masses. Beside direct consumer, hoteliers, restaurants owners and

various other soft drinks peddlers also use them. Thus it can be said that these are the product for

mass consumption.

CARBONATED SOFT DRINKS:-

COLA:

Pepsi

REFRESH EVERYTHING

Contains: Carbonated water, high fructose corn syrup, caramel color, phosphoric acid, caffeine, citric

acid and natural flavors

31

Diet Pepsi

0 carbs. 0 calorie. It’s the diet cola.

Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate

(preserves freshness), caffeine, citric acid and natural flavors.

Calories 0

Total Fats (g) 0

Sodium (mg) 25

Potassium (mg) 20

Total Carbohydrates (g) 0

Calories 100

Total Fat (g) 0

Sodium (mg) 25

Potassium (mg) 10


Sugars (g) 27

Protein (g) 0

Caffeine (mg) 25

32

Sugars (g) 0

Protein (g) 0

Caffeine (mg) 24

ORANGE:-

Mirinda Orange

SPARK YOUR IMAGINATION

Contains: Carbonated water, high fructose corn syrup, citric acid, purity gum, potassium benzoate and

potassium sorbate (preserves freshness), ester gum, natural flavor, yellow 6, ascorbic acid and calcium

disodium EDTA (to protect flavor), sodium citrate.

Calories 120

Total Fats (g) 0

Sodium (mg) 25


Sugars (g) 32

Protein (g) 0

Caffeine (mg) 0

33

Mountain Dew

DARR KE AGE JEET HAI

The fastest-growing soft drink of the decade, Mountain Dew currently ranks as the nation's leading soft

drink in retail outlets. Doing the "Dew" is like no other soft drink experience because of its daring, high-

energy, high-intensity, active, extreme citrus taste.

Contains: Carbonated water, high fructose corn syrup, concentrated orange juice and other natural

flavors, citric acid, sodium benzoate (preserves freshness), caffeine, sodium citrate, gum arabic, yellow

5, erythorbic acid (preserves freshness), calcium disodium EDTA (to protect flavor) and brominated

vegetable oil.

Calories 110

Total Fats (g) 0

Sodium (mg) 50

Potassium (mg) 0


Sugars (g) 31

Protein (g) 0

34

Caffeine (mg) 36

LEMON:

7up

Cool 7up

Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate

(preserves freshness), caffeine, citric acid and natural flavors

Calories 100

Total Fats (g) 0

Sodium (mg) 25

Potassium (mg) 20


Sugars (g) 31

Protein (g) 0

Caffeine (mg) 24

35

Nimbu paani, Nimbooz

PepsiCo India has launched packaged nimbu paani, Nimbooz by 7UP. The product has been created

to suit Indian tastes. PepsiCo claims that Nimbooz, an offering with real lemon juice, no fizz, and no

artificial flavours will be available in trendy, convenient packs very soon in Jamshedpur .

FRUIT JUICE:-

Slice

Mango Aamasutra

Contains: Carbonated Water, High Fructose Corn Syrup, Mango Juice From Concentrate, Citric Acid,

Potassium Benzoate (Preserves Freshness), Modified Food Starch, Natural & Artificial Flavors,

Potassium Sorbate (Preserves Freshness), Ascorbic Acid (Vitamin C),Yellow 6, Glycerol Ester of Wood

Rosin, Calcium Disodium EDTA (To Protect Flavor), Sodium Citrate.

Calories 120

Total Fats (g) 0

Sodium (mg) 25

Potassium (mg) 35


36

Sugars (g) 35

Protein (g) 0

caffeine (mg) 0

PACKAGED DRINKING WATER

Aquafina

Pure Water. Perfect Taste.

Enjoy the crisp, refreshing taste of Aquafina – 100% pure, non-carbonated, purified drinking water. The

consistent purity and great taste of Aquafina are guaranteed by means of a state-of-the-art purification

process that includes reverse osmosis and carbon filtration. Since its debut in 1995, Aquafina has won

over consumers with its great taste and purity.

Aquafina is the official bottled water of Major League Soccer and the PGA of America. Aquafina is distributed nationwide and can be enjoyed in 500 ml., 1-liter and 1.5-liter bottles. Aquafina. Purity Guaranteed. Contains: Purified water

Calories 0

Total Fats (g) 0

Sodium (mg) 0

Potassium (mg) 0


Sugars (g) 0

37

DIFFERENT FLAVOURS OF PEPSI

PRODUCT

WITH ITS

SKUs

(STOCK KEEPING UNITS)

SKUs OF 7UP

GLASS 200ml, 300ml

Can 250ml, 330ml

Pet 600ml , 2 ltr

SKUs OF MOUNTAIN DEW

GLASS 200ml

Can 250ml, 330

Pet 600ml , 2 ltr

38

SKUs OF MIRINDA

Glass 200ml , 300ml

Can 250ml, 330ml

Pet 600ml, 2 ltr

SKUs OF DIET PEPSI

CAN 250ml, 330ml

Pet 500ml

SKUs OF SLICE

Glass 250ml

Pet 500ml, 1.2 ltr

Tetra 200ml

39

SKUs OF AQUAFINA

PET 500ml, 1 ltr, 2 ltr

SKUs OF TWISTER

PET 350 ml, 1.2 ltr

SKUs OF TROPICANA

TETRA PACKS 200ml (pineapple , mixed fruit,

mango nectar, guava nectar, Lychee, Peach

orange nectar, Strawberry, Apricot)

TETRA PACKS 1 LTR ( pineapple , mixed fruit,

mango nectar, tomato, guava nectar, Lychee,

Peach orange nectar, Strawberry, Apricot)

40

THE PRODUCTION PROCESS

The production process being carried on the SMV Beverages (Jamshedpur) in for batch type. The entire

process is almost automatic and it requires huge amount of water and electricity. The production process

is divided into following steps”

Water treatment

Bottle washing

Syrup preparation

Filling

Shipping

WATER TREATMENT

SMV Beverages (Jamshedpur) gets water from Sitarampur Dam. This wager being collected in huge tanks

undergoes two different treatments resulting in soft water and treated water.

SOFT WATER

The municipal l water is passed through sand filter, carbon purified and salt charged softener (to remove

hardness). The water obtained after this treatment is called soft water. This soft water being kept with 2-

4 PPM c12 in storage tank is used for bottle washing and the water being stored with c12 goes the boiler.

TREATED WATER

The municipal water is at first treated with Ferrous Sulphate (feSO4) lime and Chlorine. This process

involved is called Coagulation and it takes place in the reaction tank. From reaction tank the water moves

on to the intermediate tank to be stored in storage tank. From there it passes through the sand filter,

carbon purifier, and Ultra-Violet Light. Water obtained after this much treatment is called treated water

and is used preparation of drinks.

BOTTLE WASHING

Bottles coming back from market need to be washed before filling. Washing of bottles is a completely

automatic process. This takes place in machine having three chamber. Bottles are put on the conveyor

41

and as they enter the machine they undergo three successive treatments. At first, they are treated with

4% caustic soda at 100-150 F. in the next chamber, they are treated with 2% caustic soda at 120 F and in

the third chamber they are treated with soft water. The cleaned bottled are sent to inspection, where the

upper and lower portions of the bottle are watching successively against light.

Bottle washing

SYRUP PREPARATION

The room is well equipped with several tanks and filter press. The Syrup is prepared with calculated

amount of sugar and water being heated up to 85 C. This syrup is passed through filter press.

Thfiltered syrup is passed through a Para flow cooler whereby recycling and glycol method the syrup is

cooled down to 20-25C. The cooled syrup is stored in syrup tank.

FILLING

The syrup mixed with carbonated water under pressure in a Traumatic Machine. Inspected bottles

gradually come under the “Filler machine” where the carbonated syrup is poured into the bottles and

the crowner machine helps in closing the bottles completely airtight. Ready bottle are once again

inspected to check the quantity and from there they are collected.

42

SHIPPING

After the whole process of bottling is completed, filled bottles in cases (creates) are sent to the

shipping department and it sends them to different destinations for Sales.

43

PART -2

TRAINING REPORT

44

OBJECTIVE OF STUDY

PRIMARY OBJECTIVE:

The project is about to know the “Merchandising and Market share of Pepsi and Coke” adopted by S.M.V BEVERAGES PVT.LTD (FRANCHISEE OF PEPSI CO INDIA)

SECONDARY OBJECTIVE:

To know the various promotional , selling and distribution strategies adopted by SMV BEVERAGES s

PVT .LTD

To determine the visibility of the Pepsi products and SKUs on the Dealer outlets, and check the

total flavours available in the outlets

To check the charging and purity on the dealers outlets.

To determine the market Gap.

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

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

To find out the dealers’ satisfaction about the Pepsi products and service.

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

The ultimate objective of this project is to gain practical knowledge and experience on different

marketing activities.

The principal methodology adopted in the project was a conclusive survey, which was conducted

with help of a questionnaire and in depth interview with the retailers for collection of primary data.

45

LIMITATIONS OF THE STUDY

** SSoommee ooff tthhee oouuttlleettss wweerree rreelluuccttaanntt ttoo ggiivvee tthhee rreelleevvaanntt iinnffoorrmmaattiioonn dduuee ttoo eexxcceessssiivvee hheeaatt..

** WWhheenn tthhee ccuussttoommeerrss wweerree iinn tthhee oouuttlleettss ,, II hhaadd ttoo wwaaiitt ppaattiieennttllyy ttoo ggeett iinnffoorrmmaattiioonn..

** SSoommee ooff tthhee oouuttlleettss sshhoowweedd tthhee aattttiittuuddee ttoowwaarrddss mmee.. IItt ttooookk ttiimmee ttoo ggeett tthheeiirr ccoonnffiiddeennccee..

** SSoommee ddeeaalleerrss wweerree eexxttrreemmeellyy uunnhhaappppyy wwiitthh tthhee ccoommppaannyy ssuuppppoorrtt aanndd aafftteerr ssaalleess sseerrvviivvee..

** SSoommee ooff tthheemm ccoouulldd nnoott ggeett ttoottaall ffllaavvoouurrss dduuee ttoo wwhhiicchh tthheeyy nnaaggggeedd..

** MMaannyy ddeeaalleerrss wweerree ffoouunndd iiggnnoorraanntt ooff tthhee sscchheemmee ggiivveenn bbyy tthhee ccoommppaannyy..

** PPeeppssii sscchheemmee ggiivveenn bbyy tthhee ccoommppaannyy wweerree ffoouunndd ddiiffffeerreenntt ffrroomm ppllaaccee ttoo ppllaaccee dduuee ttoo wwhhiicchh

rreettaaiilleerrss wweerree ddiissssaattiissffiieedd..

** SSoommee ddeeaalleerrss nnaaggggeedd ffoorr tthhee rreeppllaacceemmeenntt ooff tthhee eexxppiirryy aanndd ddeeffeecctteedd pprroodduuccttss..

46

RESEARCH DESIGN AND METHODOLOGY

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

The research design of this report is exploratory i.e. formulating a problem from more precise investigation. The

major emphasis is on the discovering of ideas and insights. The formulate research design is characterized by

great amount of flexibility. It contains of is characterized by great amount of provide opportunity for considering

different aspect of a problem undertaken in the study.

COLLECTION OF DATA:-

Data was collected on the basis of primary & secondary .Primary Data: The data, which is being collected for

the first, is known as primary data. These data were collected by concerning to the retailers by various

questionnaires and concerning the senior marketing executives . Secondary Data: The data, which is already

assembled, is the secondary data i.e. magazines, web sites and organization report.

DATA COLLECTION METHODS

Questionnaire

Personal interview

Sampling design

Sampling design is a conductive approach, which gives the research work a factual as well as conclusive

framework. It contains sample size, which is basically a true representation of the target population

MTHODOLOGY OF THE STUDY:-

Exploratory:

To get the information different outlets exploratory research method are adopted. A survey form was

prepared and the retailers were asked to answer them during the course of their interview.

47

Schedule Method:

Dealer’s responses were conducted with the help of a prepared schedule. Samples are taken at

different locations of Jamshedpur like Bistupur , and Sakchi

Field Observation:

During training period I did extensive survey of the outlets and consumer to observe the marketing

operation and other activities performed by the organization.

KEY AREAS OF TRAINING

The key area of my summer training was “To know the merchandising and ,market share of pepsi and

Coke “ in SMV Beverages Pvt.Ltd . The company had divided his retail outlets on the basis of area

wise and character wise. Each of the division is having mainly three types of outlets.

AREA WISE

The area of my summer training was “Jamshedpur” and according to the company the whole training

area was divided into three parts…

o INNER CIRCLE: - These are the main selling point of a company or heart of a city. In inner circle

we mainly consider those selling point or retailers shops which come under the main market

area.

o OUTER CIRCLE: - These areas are adjacent to the main market area, which is a mixture of

residential areas and market areas. In these areas we mainly talk about those retailers’ shops,

which are placed in the residential areas and quite away from the main market..

o OUTSKIRTS: - These areas are quite away from the main city and the main market, or the

interior areas of the towns.

48

CHARACTER WISE

Again there is a division of outlets on the basis of characters (type of work done by the retailers)

and there are again three types of outlets.

o CONVENIENCE OUTLET: - These types of outlets include general stores, beetle shops, stationary

shop, medical shop and such type of other shops.

o GROCERY OUTLETS: - These types of outlets include grocery stores which indulge in selling of

foods and related things used in the home.

o EATERY: - It includes restaurants, fast food joints etc.

Target Area

Includes extensive area of Jugsalai and Bistupur .

Sample Size

During my training period I visited the outlets of Jugsalai and Bistupur.

AREA NO OF OUTLETS

JUGSALAI 52

BISTUPUR 117

49

MARKETING ACTIVITIES

AT

SMV BEVERAGES PVT .LTD

MAJOR PLAYERS AND THEIR STRATEGY

MARKETING ACTIVITIES

Marketing is a social process by which individual and group obtain what then need and want through creating

offering and freely exchanging products and services of values with others.

-Philips Kotler

The tools of marketing mix are combined in such a manner that they give maximum mileage to the

product from the factory to the consumer’s hand.

Product

Price

Place

Promotion

Position

Probing

Perpetual Mapping

The soft drink being a FMCG has a wider and scattered market. Thus to enable concentrated effort of

marketing activities in different scattered market, for effectively setting the entire market is broken

down into the following segments.

50

Route market

Home market

At work market

Route market:

Outlet in this market caters to those people who are engaged in shopping, eating outgoing to and from

work, in amusement center etc.

Home market:

Outlets in this market cater to people buying predominantly for home consumption, either by case or

loose bottles.

At work markets:

Outlets in this market cater to people working in offices, factories etc. an attempt is always made to

make soft drinks readily and conveniently available all day long while people are actively working

51

PROMOTIONAL ACTIVITIES

Sales promotion a key ingredient in marketing campaigns consists of a collection of incentive tools,

mostly short term, designed to stimulate quicker or greater purchase of particular products or services

by customers.

Promotional activities play a key role in the entire marketing effort being carried out by S.M.V.

Beverages which are in sync with those of PepsiCo India. These promotional activities generate more

sales as well as create a good image of the product in the mind of the customer.

The promotional tools used by SMV Beverages for its marketing activities are

Point of sale display

Incentives to retailers

Sales promotion through sponsoring special events

Sales promotion through various schemes

Advertising

POINT OF SALE DISPLAY

Advertising

Sales

Promotion

Direct

Marketing

Personal

Selling

Public

Relation

52

“There are many ways to communicate with consumers at the point of sale. In-store advertising includes

shopping carts, cart straps, aisles and shelves. The appeal of the point of sale advertising lies in the fact that

in many categories consumers make the bulk of their final decision regarding purchase in the shop.”

- Marketing management. Kotler, 12e

This is particularly true for those brands which have very low customer loyalty. Soft drink is one such

product in which most of the time buying decision is made at the spur of the moment based on the

brand which is readily available and catches the eye of the customer. For this reason S.M.V. Beverages

invest heavily in this category by supplying the shop owners with stands so that they can keep the

bottles outside on those stands so that customers have an eye contact with them as he/she is entering

the shop. Also Pepsi supplies the shop with visi coolers with a glass front so that cooled bottles can be

seen by the customer when he/she is making a decision on the flavor that the person is going to buy.

Apart from these SMV Beverages takes keen interest in other type of strategies like painting the walls

of the shops with the Pepsi logo, putting up glow signs and dash boards with the Pepsi logo and the

shop name. This increases the visibility of the brand among the customer when he/she enters the

shop.

INCENTIVE TO RETAILERS

Another method of sales promotion being used by SMV Beverages is by running special incentive

schemes for retailers. This type of promotional strategy is conducted mainly during the peak season

i.e., from March to July. In this the company with the help of its distributor in the respective areas

categorizes the retailers into different categories based on sales. After this the retailers are given a

target regarding the minimum number of crates that they have to sale in that period. On achieving the

target the dealer is given the prizes which ranges from free bottles, gift items etc.

SPONSORING SPECIAL EVENT

Another promotional strategy which is very heavily used by Pepsi and as such by SMV Beverages is

sponsoring various events which include cricket matches, local events like quiz competitions, parties,

local sports events etc. While sponsoring international cricket matches require huge investments the

decision regarding the same is taken by the parent company and SMV only acts as an intermediary to

53

it. Sponsorship decisions which are taken by SMV are more localized in nature which includes local

sport events, parties, music shows etc which require relatively smaller investments. This type of

promotional activities helps in creating a positive image of the company and the brand. By becoming

part of a special and more personally relevant moment in consumer’s lives, involvement with events

can broaden and deepen the relationship of a company with the target market.

SALES PROMOTION THROUGH VARIOUS SCHEMES

SMV Beverages keeps on running various schemes from time to time which are mostly those promoted

by Pepsi and some by SMV Beverages. These include schemes for both the retailers as well as the

consumers. Schemes which are given to the retailers include free bottles for every crate purchased;

discount schemes under which discounts mostly monetary in nature are given to the retailers, scratch

card scheme which include monetary gains as well as gifts are given to the retailers on buying stocks in

bulk quantities. There are also other promotional schemes like UTC (under the crown).

PROMOTION BY UTC(under the crowns) BY PEPSI

There was another one such promotional schemes given by Pepsi in UTC. In the 7up 200ml crowns

there was a consumer scheme.

In our training period all the students were divided into groups and there were given a particular area

to do the advertisements for 7up 200ml . For that we had to put the stickers and bunting on the

outlets of Sakchi. There was a consumer offer in 7up 200ml crowns. In that crowns there was a chance

to win a “gold nimbu” or the chance to win some a cash prize under the crown.

These type of activities is done to increase the sales of 7up. Primary focus is on Branding and secondary

focus is on sales. It gives the mileage to the product. The motto behind it is to create a position in

consumers mind to buy the product. The posters , stickers and bunting was put in the outlets by

looking into the factor that there is the maximum visibility.

54

DISTRIBUTION CHANNEL

Physical distribution is a process of reaching a product to consumer. It consist of all the activities in the physical

transfer of goods from manufacturer tom the ultimate consumer. Distribution is one of the main aspect of

marketing.

Theoretical Aspect:

Main problem of a manufacturer can broadly be divided into two parts, production and distribution. After

production, the next main problem faced by the producer is that selling distributing because the production is

made to safety the needs of consumers, so it must reach the consumers for whom it is made.

Thus a way through which goods flows from the producer to the consumer is called “Channel of Distribution”.

The term “Channel of Distribution” has been defined by many eminent authors as follows:-

“Every producer seeks to line together the set of marketing intermediaries that about fulfill the firm’s

objectives.This set of marketing intermediaries is called the marketing channel also trade channel of

distribution. -Philip Kotler

55

Function of channels of Distribution:

The following are certain functions, which generally are performed by different channel of distribution or

middlemen.

Helpful in price determination

Channel of distribution are very helpful in determining the price of the product because they are in direct touch

of consumer. They can estimate paying capacity of the middleman while determining the price of his product.

To manage finance

All the manufactures have limited financial resources. A middleman helps manufactures in adequate financial

resources available.

To manage the process of distribution easy

It is not possible for a producer particularly a producer of consumer goods to be in direct touch of all consumers.

Therefore, it is not very practical for the producer to distribute the goods produced by the producer at the tight

time and at right place to the right consumer.

Promotional Activities

Channel of distribution help the producer not only in the distribution of goods and services but also in

promoting the sales of these producers. Wholesalers advertised for the goods dealt by them and retailers help in

increasing the sales by adopting the method of sales promotion.

Helpful in communication

It is the time of changes. Habits, tastes, nature and attitudes of the consumers keep on changing frequently. In

the light of these changes it becomes imperative for every producer to make necessary changes in these

products. Channel of distribution help producer by communicating the changes in the products to the

consumers and also communicating the changes in habits, tastes, liking and preferences of the manufacturers.

Matching the demand & supply Most important function of the middleman is to collect and services from many producers so that consumers

may select from a large number of alternatives. In the words of WORE ALDERSON – “The goal of marketing is

the matching of demand and supply. Thus the middleman plays the game of matching demand and supply

demand and supply of goods and services in the market.”

56

Other functions Other functions of channel of distribution may be as follows: -

To stabilize the prices

To help in forecasting the demand for a product.

To help in market research.

To help in production activities.

CHANNEL OF DISTRIBUTION IN SMV BEVERAGES PVT. LTD.

To make its products available at the right place, at the right time in the market, at the right price, the sales

department of the company pays major attention towards controlling the channel of distribution.

The company right from its beginning stage maintains single type of marketing channel. The nature of channel is

as follows:-

Factors affecting the choice of the channel of Distribution:

There are number of channel & company is to choose any one of them that makes best in the

marketing strategy followed by the company. The channel chosen achieve ideal market exposure and

COMPANY DISTRIBUTER OR

WHOLESELER

RETAILERS OR

DEALERS CONSUMERS

57

should meet target consumers needs and preferences. In choosing an ideal channel, the producer

always has to struggle between what is ideal and what is available, what available need is not

necessarily be ideal because here are number of factor limit the choices.

Channel may be considered to be the best but it not always so. The main consideration in selecting the

channel must be satisfaction of customers and therefore, sometimes relatively high cost channel may

prove profitable.

Various factors which affect the choice of channel of distribution may be classified as factors relating to

Factors relating to Product Characteristics

Purchase Frequency.

Perish ability.

Weight & Technology of the product.

Selling price per unit.

Standardized Product.

Market Factors or Consumers factors

Consumer of industrial product.

Number of purchasers.

Geographical Distribution of customers.

Size.

Companies or Enterprise Factor

Financial Resources.

Size of the Company.

Product Mix.

Attitude of the Company Executive.

Marketing Policies.

58

Middle Consideration

Services provided by the middleman.

Middleman attitude.

Availability of middleman.

Sales Volume potential.

Cost of channel usage.

Environment Factors

Economical Conditions.

Legal Restriction.

Social & Ethical Consideration.

Thus the above factors influence the channel decision. The producer must consider these factors

before engaging any channel for distribution. It is therefore right to say that the producer is not always

free to enjoy complete freedom in selecting channels of distribution

At first soft drinks is supplied to distributors directly. Retailers cannot take the delivery directly from the

company. They have to take it from their respective or nearest distributors. The distributors selected on the

basis of assurance given by them regarding minimum sales, which they have mention annually. The selection is

also done on the basis of the financial position and reputation of distributing in the market. As for the example,

in appointing distributors first priority is given to those people who are in cigarette business.

Depending upon market each distributor in its initial stage deposit some security money. This amount varies

between five thousand and ten thousand. The distributor selects the retailers. There is no relation between the

companies its retailers.

On the other hand there is no definite and fixed criteria for the selection for appointment of retailers from the

side of distributors. Any one likes ”Panwala, Cigarette Shop” Or any other shopkeeper can have the stall for the

sale of soft drinks and they are called retailers or dealers. They have to give assurance to the concerning

distributors for better sales and at the time of taking delivery they have to deposit the security that is the

change for the empty bottle with specified purchasing price.

59

The distributors at first have to seek the permission of the sales department for the number of cases of soft

drinks required by them. After getting for the proper authority from the sales department, they take the delivery

from the shipping department paying the requisite either in cash or as demand draft.

Generally there is no compulsion on that part of distributors to provide the transportation facilities to their

retailers. But the distributors of the big areas like Dhanbad, Jamshedpur, Bokaro and Ranchi etc. provide the

transportation facilities to their respective retailers.

The distributors and retailers are independent to sell as they want but are controlled to some extent by the

company also, as they have to give some assurance regarding minimum sales. It happens so because they are

given some incentives also. They are fully independent to gear up the market, as they want. The company does

the gearing job itself also and some times it advises them to the gearing up in a way, which is more profitable for

all of them.

The distributors can be dropped if they fail to achieve the required target of sales. They can be also dropped

when they don’t follow the instruction given by the company or when they charge high price or when they are

engaged in black marketing, loading etc. But the company has not dropped any of its distributors till now.

The supply of soft drink, to the distributors depends upon the Ups and Downs in sales. But, in the initial stages

the distributors have to sell up to a minimum target set by the company or as decided by an agreement between

the company and distributors. In the later stages soft drink is supplied as and when demanded by the

distributors.

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ADVERTISEMENTS

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ADVERTISING POLICY

Advertising is a fascinating and important aspect of marketing. The health of many businesses depends

on the generations of effective advertising. Advertising catches the imagination of people outside the

industry. Everyone seems to have opinions on the advertisement and finds it easy to attach levels to

them, such as fun, humors, warm, entertaining, persuasive, boring, contriver or irritating.

Advertising is basically communication and persuasive and such as long leaved on the insight of

psychology and the study of consumer behavior. Thus, it is natural to look to theories, concept and

research findings from psychology help to understand and manage the process. In all phases of

advertising process from objective setting through campaign creation and media selection to copy of

campaign evolution, research provides the thrust. Major institutions involved in the field of Advertising

Process.

Advertising is heavily focused on the analysis, planning, control and decision making of the core

institution – ‘The advertiser’ provides the overall managerial direction and financial support for the

development of advertising and the purpose of media time and space. Even though, many other

institutions are involved in the process.

The resulting is usually aired are placed several times and the resulting schedule of exposure is referred

to as an advertising campaign. Thus identification and understanding of markets and consumer

behaviors is also a vital part of advertising process.

TYPES OF ADVERTISEMENTS

DIRECT ADVERTISING

Ad films, radio, newspaper ,Ad in magazine, Hoardings, Glow sign, Sponsorship

INDIRECT ADVERTISING

Shop painting , Wall panting, Visi coolers , Vehicle paintings

SIGNIFICANT OF ADVERTISING

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Advertising is a non-personal promotion of goods and services, by a sponsor (a firm or person) who

can be identified and who has paid for this communication.

The purpose of advertising is to lead to an immediate sale, or a sale at home later date when the

customer may find a need for the product. The purpose of advertising is to sell something; this gole is

reached by specific objective that can be expressed in individual ads that incorporated into advertising

campaign.

Recall again from the buying decision process that buyer go through a series of stages from awareness

to purchas es. Thus an immediate objective of an advertisement may be to move target customers

to the next stage in the hierarchy-say from awareness to interest.

Objective of advertising strategy:

Support personal Selling

Advertising may be used to acquaint prospects with the sellers, company and products, easing the way

for the sales force.

Improve Dealer Relations

Wholesaler and retailer like to see a manufacturer support its product.

Introduce a New Product

Consumers need to perform even about line extensions that make use of familiar brand names.

Expanding the use of Product

Advertising may be used to lengthen the season of the product increase the frequency of replacement

or increase the variety of products uses.

Counteract substitution

Advertising reinforces the decision of existing customers and reduces the likelihood that they will

switch over to the alternative brands.

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ADVERTISING STRATEGY OF THE COMPANY

The main motive behind the purpose of advertising of the bottles of PEPSI Co. is to maintain the brand

loyalty through recalling the memory of the users of soft drinks as to attract the potential consumers

who consume a soft drink on the spur of the moment.

All the bottles of India to advertise he produces Pepsi, 7Up, Mirinda, Slice, mountain dew as per the

norms and guidance of the Pepsi Co. of India. On the national basis using a number of media. The

media extensively used are: Newspaper, short advertising films, Radio, TV.

Out of these Pepsi invests heavily in advertising through TV. Brand ambassadors of Pepsi include film

stars, cricketers and other sport persons. PepsiCo gives these brand ambassadors hefty sums running

into many corers to endorse their brands.

Some of the brand ambassadors of PepsiCo associated with the different brands is:

Shahrukh Khan – Pepsi

Sachin Tendulkar – Pepsi

Sanjay Dutt -Pepsi

Amitabh Bachchan – Pepsi

John Abraham – Diet Pepsi

Zayed Khan – Mirinda

Mallika Sherawat – 7up

Mahinder Singh Dhoni – 7up

Kareena Kapoor - Pepsi

Govinda –Mirinda

Preeti Zinta - Pepsi

Ranveer Kapoor - Pepsi

Katrina Kaif - Slice

Asin - Mirinda

Bappi lahiri - 7up

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YEAR WISE ADVERTISING OF PEPSI SINCE 1990

After entering in India PEPSI started their advertising is planned way to fulfill the objectives expressed

by Vibha Rishi, Executive Vice President, and Marketing Pepsi India, as “We believe in advertising that

leaves a smile on your face”.

In 1990 – The first commercial came on screen with actress Juhi and Pop Singer Remo. The theme was

“Feel the music”. “Are you Ready for the Magic!” Went the jungle and this ad ends with opening of

Pepsi Bottle.

In 1992 – The famous and unforgettable punch line”Yehi Hai Right Choice Baby…Aha!” was introduced

with Remo and twelve years old Penny Vaz.

In 1993 – “Can I have Another Pepsi”.

In 1994 – Here Pepsi introduced cricket star Sachin Tendulkar, Vinod Kambli and Azhar in which Sachin

and Kambli fight for Pepsi bottle and in the meanwhile Azhar comes and takes the bottles this ad also

ended with the same punch line “Yehi Hai Right Choice Baby…Aha!”.

In 1995 – In this commercial when Akshay is given another soft drink. Then the kid in the audience

shouts” Hai Akshay Pepsi” and he gets back his magic and this ad also ends with the same punch line.

In 1996 – Here the commercial shows the enthusiasm of Shahrukh to get pepsi for his girl friend. He

dodges the dog and with this he tries to show that Pepsi is the active choice to get foe which the

customer can do anything, and it is also revealed by the line “Pepsi To Mai Pe Ke Rahunga”. In the

same year Sachin, Azhar and Kambli introduced the slogan “Nothing Official About it”.

In 1997 – In this year Pepsi celebrate the 50 years of Indian Independence by the slogan “Azadi Dil Ki”

with Shahrukh and Azhar.

In 1998 – In this year Pepsi has again involved many cricket stars for commercial with slogans “More

Cricket More Pepsi”, “Got a keep a cool ahead”, and “Generation Next ”. Beside this it has also

flashed many commercials Leander Pace & Mahesh Bhupati for Mirinda (Orange) Mirindaaa… for

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Mirinda (Lemon) – The commercial for Mirinda lemon done by the bollywood star Amitabh Bachchan

gave tremendous real”Jhatka” to competitor with the help of memorable punch line “Jor Ka Jhatka

Dhere Se Lage”which is ruiling heart throbbing of millions. Apart from all these commercial Pepsi has

sponsored many Sharjah Cup at Sarjah.

PEPSI Independence Cup in INDIA

YANNI Concert in AGRA

Asia Cup in SRILANKA

In 1999 – World Cup ’99 was sponcered by Pepsi – The ad featured Shahrukh Khan and Sachin

Tendulkar and the punch line “Yeh Dil Mangay More” become very famous.

In 2000 – Ad featuring Shahrukh Khan, punch line “Yeh…more”

In 2002 – Ad featuring Shahrukh Khan, Amitabh Bachchan, Kareena Kapoor, Sachin Tendulkar , Adnam

with the same punch line.

In 2003 – Ad featuring Fardeen Khan, Saif Ali Khan, Kareen Kapoor, Preeti Zinta with the punch line

“Mousam Gram Hai Pepsi ke Liye Hum Besharam Hain”.

In 2003 – ICC World Cup was also sponsored by Pepsi, featuring Shahrukh Khan in the ad. Also an ad

was featuring Sachin Tendulkar, Shane Warne & Carl Hooper punch line “Bagha Diya Na”.

In 2004 - Ad featuring Shahrukh Khan who done the Army uniform to promote the new positioning”Ye

Pyase Hai Badi”.

In 2005 - Ad featuring Shahrukh Khan with the punch line “Oye Bubley…”.

In 2006- Ad featuring Shahrukh Khan and John Abraham “Its my Can” .

In 2008- Ad featuring Ranveer Kapoor with a punch line “yeh hai youngistaan meri jaan”

In 2009- punch line “har street ko jeet”.

In 2010-punch line “Youngistan ka wow

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CBD ACTIVITIES

CBD activity is “Chalo Bazaar Day”. Its basically focus on Sales. The main objective of its sales activity is

600collect the order or do POG. Its related to the presales order. Its main motto is to promote the sales and

give mileage to the products. In this all the students were divided into groups and they were send to different

places of Jamshedpur. Sales day is taken up to promote sales on a particular day with the help of

schemes. I have also taken part in 4 bazaar days which happened during my training period. The scheme

was different each time.

Company announces a special offer for the retailers to increase its sales like

Two bottles free on purchase every carret of 2000ml of all product of pepsico.

Two bottles of 600ml pet bottles free on purchase of every case of 600ml of pepsi , mirinda ,

7up, and mountain dew.

Six bottles of 600ml bottles free on purchase of every case of 2 ltr pet bottles of pepsi, mirinda ,

7up, mountain dew.

1st CBD

It was on 03/5/10 . That day the focus was on POG in Jugsalai. Altogether in 12 outlets we did POG.

2nd CBD

It was on 20/5/10. It was a sales day. We had to take orders in Bistupur. We took orders of 450 cases.

3rd CBD

It was on 10/6/10. It was a sales day and we took orders in Jugsalai. We took orders of 275 cases.

4th CBD

It was on 23/6/10. It was a sales day and we took orders in Jugsalai . We took the orders of 175 cases

and we had to do the work without schemes.

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MERCHANDISING

AND

MARKET SHARE OF PEPSI AND COKE

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MERCHANDISING

“ JO DIKTHA HAI , WO BIKTA HAI”

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MERCHANDISING POLICY

In today’s fast moving industry and highly competitive market, only those products are likely to be

purchased which are capable of hitting the impulse of the consumers. The products appeal should be

able to penetrate and embedded into the perceptual space of the consumer’s mind. The concerned

product should induce to the consumers. Pepsi believes that “Jho Dikhta Hai Who Bikta Hai” i.e. any

product which is visible is bound to be sold.

METHODS OF MERCHANDISING

These are methods of increase the visibility of product:-

o Visi-cooler placement

o Glow signboard

o Paintings

o Crate Stacking

o Umbrella

o Banners

o Danglers

o Sun Packs

o Display Scheme

o Special Schemes

In the era of globalizing and liberalization the competition in the market has become very tough to

beat the competitor the company has to improve itself, and see how customer can be best satisfied or

how customer can be delighted. Each company has to develop strategy for the following purposes.

Aware the customer about the product

Make the customer feel that they are important and company is given best of the products.

The services associated with the product is if high quality.

To increase its growth and sales and be market leader.

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CASE DISPLAY

This is one of the important and foremost merchandising activity in which we relate to one of the

promotional activities that bring about in store displays. It is the matter of the fact that the Pepsi Cola

carets, which is the plastic container, which is designed in such a way that it can contains in bottles at a

time are displayed properly and effectively in front of the counter or shop. This will make aware to the

customer, that Pepsi product is available in the counter. At the same time it enables the retailer to

know about the stock available in his shop. So, we were assigned the task to check up the display and

help it to visualize the case display properly.

WARM CASE DISPLAY

These are the empty cases, which is to be display in front of the outlet, so that the people could easily

recognize that Pepsi Product is sold here. So, here our work was to display the warm case in from of

the outlet.

VISICOOLER CHARGING

Generally, the consumers demand the soft drinks in the chilled conditions, which is only possible to

have a Pepsi Chilling apparatus either fridge or icebox . So, we were assigned to check whether the

cooling apparatus is performing well and good up to mark with the Pepsi Product.

VISICOOLER PURITY

By cooler purity we mean to say that the cooling apparatus that is either fridge or icebox is fully

charged with the Pepsi Product only. Here we were assigned a job to check out whether the cooling

apparatus is best utilized by the Pepsi products or not. If not then arrange the cooler with the

particular product of Pepsi.

RACK DISPLAY

Special type of Rack, which as been provided by the company in order to keep the pet jars of 1 ltrs, 1.5

ltrs, 2 ltrs and 500 ml,600ml. It’s a plastic stand with sonic racks, which is used to display pet jars

available at the particular outlet. This serves the dual purpose. First as a mode of advertisement and

the other utility is used to deep all the pet jars available in the outlets. Our job were assigned to check

out whether the retailers are utilizing the stand properly or not, if not then we would have to arrange it

properly

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VISICOOLER PLANOGRAM (p-O-G)

Visicooler Planogram is a part of merchandising where main focus was to check the purity, charging

and visibility of the visicooler. Different size of visicooler had different types of arrangement of

flavours of pepsi products. The different sizes of visicooler are 220ltr,300ltr,320ltr, 400ltr, 440ltr,650ltr,

1200ltr etc. Planogram is a process of filling of visicooler with the Pepsi and pepsi products. Its is

mandatory that the Apart from this we also look into the factor the visi is kept on the correct place to

enhance its visibility because Pepsi believes that “Jho Dikhta Hai Who Bikta Hai” i.e. any product

which is visible is bound to be sold. Moreover we know that only “COLD IS SOLD”.

The main aspects of the Planogram are

100% Purity

Charging .

Visibility.

100% PURITY IN VISICOOLER

By cooler purity we mean to say that the cooling apparatus that is either fridge or icebox is fully

charged with the Pepsi Product only because some retailers keeps the other products like coke

products , fruity , milk etc. Here we were assigned a job to check out whether the cooling apparatus is

best utilized by the Pepsi products or not. If not then arrange the cooler with the particular product of

Pepsi and other extra product were removed.

CHARGING

Generally, the consumers demand the soft drinks in the chilled conditions, i.e, only “COLD IS SOLD”

which is only possible to have a Pepsi Chilling apparatus either fridge or icebox . So, we were assigned

to check whether the cooling apparatus is performing well and good up to mark with the Pepsi

Product. These helps in effective utilization of visicooler . While charging the visicooler we had to put

the flavours of Pepsi in a sequence like Pepsi, 7up, Mirinda , Mountain dew, Slice , Nimbooz,

Aquafina and it was cleaned properly before putting into the visicooler.

VISIBILITY AND POG

To check that visicooler is kept on the correct place of the outlets so that it increases the visibility and

sales. And POG involved the sequential placing of bottles/cans/tetra packs of different flavours.

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The retailers who maintained the POG gets the monthly incentives of Rs 300 and 500 by the company

depending on the size of visicooler when the auditing was done. These motivates the retailers to

maintain the visicooler according to the POG.

Steps in Planogram when it is implemented for the first time:

I. Empty the visicooler

II. Clean the visicooler

III. Clean the bottles with duster.

IV. Pepsi products are kept first on the down shelve of the visicooler.

V. Then the bottles are kept on the upper shelve with the distance of 2 inches between the racks.

VI. Then according to P-O-G the visicooler is charged as the picture shown below.

POG IN VISI SIZE 220 Ltr , 300 Ltr

According to the POG there should be

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Pepsi – 40% , 7up- 35%, Mirinda- 10%, Dew- 5%, Slice- 10%

The percentage of Pepsi is more to maintain the identity and brand of Pepsi.

Steps in Planogram when it is implemented for the second time:

I. Check the cooler .

II. Determine the number of bottles of each brand or flavour required to fill the cooler according to

the POG sequence.

III. Clean the bottles/cans/tetra packs with the duster.

IV. Place the products in the lower shelve first

V. Maintain a gap of 2 inches between the bottles and the upper shelve

VI. Repeat the process

VII. Charge the products according to the prescribed sequence of POG

VIII. Ensure that the cooler is 100% charged.

The positive aspects/functions of planogram are as follows:

It accelerates the visibility of the products. Products of all the flavours are displayed in the

visicooler in a sequence . thus it increases the sales. Increases the range selling.

It helps to determine the market gap. Market Gap is flavour of pepsi not found in the outlets. The

aggregate of all the outlets helped to determine the market gap.

Helps to take the orders of the products to the PSR(pre sales representatives)

Helps to know the SKUs sold more in a particular outlets and the aggregate of that determines that

of the market demand.

Customer can choose the flavour with ease.

Some highlights of Planogram:

It’s a studied and researched Planogram for each market ( based on cooler and sale in each

market)

There is more stocking for fast selling SKUs ‘s.

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It’s a win –win solution for retailers, Salesman , and Pepsico.. because if the retailers sales

increases , the salesperson target is achieved and thus the target of the company too. If followed

well an average retailer can get 50% increase in its sale and there can be 40% stock rotation .

There is no changes in the Planogram i.e, there is one Planogram followed throughout the year.

Thus it is rightly said that .. “Planogram se sajaane me hi hai bhalai ,

zaara si mehnat aur dher saari kamaai !!!!”

FINDINGS AND ANALYSIS

PLACE TOTAL OUTLETS

VISITED

POG DONE VISI NOT

WORKING

LOW STOCK NOT

ALLOWED

BISTUPUR 80 58 - 8 -

JUGSALAI 57 38 4 13 2

KADMA 35 22 5 8 1

SONARI 27 21 - 5 1

Problems faced while doing P-O-G

Some of the outlets did not allowed us to enter into the outlets to check the visicooler and

do the P-O-G.

Some did not allow us to do P-O-G when the customers were in the outlets and we had to wait

patiently.

In some of the outlets there were low stocks due to which P-O-G could not be done.

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Complains of the outlets determined while doing P-O-G

Distribution problems of the products .Products not reached to the outlets in the peak period .

Visicooler not working in some of the outlets.

Some of the outlets had problems with scheme given by the distributer.

How did we solved the problem

During our training period for POG , we faced problem while doing POG. We solved by the following

ways:

When there was a shortage of flavour at any outlets we informed to the respective distributer

and the customer executive of the respective place.

We informed the problems to the concerned customer executive of the place to solve the

technical problems related to visicooler

Some retailers were not interested in POG . to motivate them for the same we explained the

benefits of POG and various schemes which were available for the retailers for POG and

maintaining visi pure.

‘pepsi cool zone’ is one of such scheme, which was available during that period of time for the

retailers

Outlets where only few flavours or brands of pepsi are sold not all flavours, we placed one

available flavour in each shelve of the cooler.

E g. in jugsalai swarnrekha store , where only three brands of pepsi are sold , which are pepsi,

7up, and pepsi- soda water.

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Questionaires for POG

Dear Customer/Retailers,

I am Upendra Kumar Shaw of Pepsico; represent the sales and merchandising department. I am here to

check the POG status of your Pepsico visicooler and charge it. Also conducting a survey on POG .

Q1. Name of outlet

Q2. Location of outlet

Q3. Outlet type

Q4. Do you have Pepsi visicooler ? yes/no

Q5. Do you coke visicooler ? yes/no

Q6. Is there any technical problem in your visicooler? Yes/no. if yes then , type of problem is ……

Q7. Do you follow POG ? yes/no. if no then , reason………….

Thank you , for sharing your valuable time

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MMAARRKKEETT SSUURRVVEEYY

Market share of Pepsi and Coke with reference to warm stock, cold stock, and empty stocks

In present scenario the size of market and number of competitors iscontinuously increasing with a

accelerated rate. To prepare a competitive strategy it is required to know about the competitors. In

Jamshedpur market there are many substitute products of pepsi like frooti, real fruit juice, jumpin,

amul cool, lassi, etc. but the main competitor is coca cola , so before going to implement any strategy it

is necessary to analyze the present market situation. Objective of market share analysis,

To know the present situation

To analyze the present situation

To evaluate the gaps

To find solutions to eliminate or to reduce caps

The report on “ MARKET SHARE OF PEPSI AND COKE” in S.M.V. Beverages Pvt. Ltd.” is based on two

different type of survey:-

MARKET SURVEY Market Survey is one of the most widely used marketing research techniques. Its purpose is collecting

specific data concerning the market that cannot be obtained from the company’s internal record or

from external published source of data market survey may be of various types like-census survey etc.

DEALER SURVEY

Dealer survey as the word indicates is the survey of every dealer of soft drink in the area. For practical

purpose the dealer not only includes the authorized dealer appointed by the company but it also

includes the retailers – big or small grocery shops, stationary, restaurant, betel shop etc. Besides these

the various exclusive stalls and sales of pantry cars are also included in it. In a nutshell, by dealer we

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mean those who are dealing with the soft drink in someway or the other in large or small quantity,

directly or indirectly.

Thus our study includes all such dealers which include various aspects:-

Route wise no. of dealers

Crate strength

Per day sale

Chilling aid

Advertising

Nature of outlets

Schemes & Pay-Offs.

Dealer survey is primary method by which one gets first hand information with respect to the

following factors:-

Knowledge of market in terms of:-

o Number of dealers

o Location of dealers

o Type of dealers

o Market output i.e. case stock, no. of glow sign, no. of visi cooler.

From this we know how good we are in the market place and in the areas where we are lacking. It

may be found that in some place only the competitor brand available, then by the help of survey we

can find out the reason behind non-availability of PEPSI brand in that specific area.

The knowledge of case stock will indicate our “case-in-trade” and that of competitors. This will

indicate our “case velocity” which will help to plan our bottle as well as whether our distribution is

effective or not. If our case stock is low then we may decide upon a “case stocking” campaign.

Feedback from the market place regarding servicing of dealers will help us to improve our servicing

in the weaker areas.

Therefore, appropriate marketing strategies can be worked out depending upon the findings.

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Distribution Effectiveness:-

From the dealer survey we can find out the number of dealers and the stock and other details. Non-

buyers will also be located. Activation of non-buyers can be done immediately. With the above

knowledge one can increase the number of routes to get increased dealer coverage and hence more

effective distribution and higher sales. Also details of this will help to check up on the route selling of

salesman, so that we can control them by closely monitoring their performance.

Training group for future executive:

Good investigators from these surveys can be recruited to take up future jobs. These people will

ideally suitable, as they would know the market thoroughly.

o They should visit the counter on the daily basis including the remote places.

o Salesman should visit the counter on weekly basis.

How to increase distribution effectiveness:

After the above survey, the company can improve the distribution network.

Immediate activeness of non-buyers

Improve the dealer coverage

Increase the realignment of routes

Therefore ”Dealer surveys” are important keeping in mind that distribution forms the major

marketing activity in our industry and also that through these surveys one acquires knowledge of the

market.

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DATA ANALYSIS AND INTERPRETATION

In order to know the market share of Pepsi among its competitors. We conducted a survey in

BISTUPUR. To do the market survey we visited the outlets of Bistupur for 10 days. We interacted with

the retailers and build a rapport with them . We also came to know how to deal with the different

types of retailers .Feedback from the retailers helped me to find out where the Company was lacking in terms

of service provided and also how the competitors fared on the same parameters. These feedbacks help the

company to improve its services and as such increase retailer satisfaction which in turn results in better sales

and revenue generation.

Visiting the Bistupur market for 10 days and and took the information of outlets and took the average

stock of warm stocks, cold stocks, crowns and empty stocks the market share was determined .

MARKET SHARE OF PEPSI AND COKE BASED ON NUMBER OF OUTLETS IN

BISTUPUR

TOTAL NUMBER OF OUTLETS IN BISTUPUR SELLIN G COLD DRINKS: 117

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INTERPRETATIONS

In the bistupur market the no of Pepsi exclusive outlets are 41 which occupies the 56% of the market

and Coka-cola exclusive outlets are 32 which occupies the 44% of the market. And the rest 44

outlets are mixed outlets.It means that pepsi is market leader in bistupur in case of outlets.

MARKET SHARE OF PEPSI AND COKE BASED ON VISICOOLER

INTERPRETATIONS

In bistupur market the no of outlets having pepsi visicooler is 58 which occupies the 53% of the

market and coke visicooler is 52 that occupies the 47% of the market. And the rest 7 outlets are

without any visicooler.That means pepsi is the market leader in bistupur in case of visicooler.

MARKET SHARE OF PEPSI AND COKE BASED ON SIGNAGE

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INTERPRETATION

Based on signage i.e, glowsine board , Banners, Dealer board, fridge, Bunting, Painting, etc. Pepsi

occupies 52% while coke occupies 48%.

MARKET SHARE OF PEPSI AND COKE BASED ON STOCKS

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INTERPRETATION

Based on filled stocks of warm and cold ,and empty of both the product in mixed outlets of 44 ,we

analysed that pepsi occupies 54% and coke occupies 46% of the market.

FLAVOUR WISE MARKET SHARE OF PEPSI PRODUCTS IN BISTUPUR

INTERPRETATION

In bistupur market , in flavour wise demand of the Pepsi products we see that Pepsi(31%) demand is

more, than comes slice(21%) ,7up(19%),mirinda(16%) , mountain dew(13%) respectively.

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FLAVOUR WISE MARKET SHARE OF COCA –COLA

INTERPRETATION

Based on the flavour wise share of coca-cola products we found that thumps up leads , followed by

sprite, maaza, fanta, limca, coca-cola respectively.

Analysis of the Dealer Questionnaire:

Some of the question asked to the dealers of the bistupur are as follows:

What is sold more among the pepsi products?

We got the answer that it depends on consumer preference. Some said that demand of slice is more

because of its mango taste while other said that pepsi product are demanded due to its sweet taste.

And demand for 7up is more than dew

Whether they are satisfied with the distribution channel of Pepsi?

They replied that they are satisfied with the distribution channel. Bansal (the distributor) of bistupur

routes the market everyday and also fulfills the demand in case of emergency. Through this question

I tried to find out from the retailers whether they are aware of the schemes of the company. Through

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this I came to find that even in the interior area also the retailers are aware of the company schemes

and it is offered properly by the distributor and sales man. This showed the effectiveness of Pepsi

distribution channel.

Whether they are satisfied with the scheme given by the company and distributor?

Around 5% outlets were dissatisfied and complained that schemes are not informed to them by the

distributor . Rest are satisfied.

Do you get every S.K.U. (stock keeping units) pack wise on demand?

In this question stock keeping units means the entire flavor that mention in the cash-memo. After

analyzing this question I found that a dealer gets the entire flavor which are available in the market If

any time, any flavor is not available with the Pepsi vehicle then that gap gets fulfill in next 12 to 24

hours or according to the demand and necessity of the product.

What is sold more among water?

The most preferred local brand of mineral water is Hard rocks, Hi-tech and Kempty the reason for

which is its effective pricing policy along with good distribution strategy comparatively to Aquafina

.Aquafina has got a good demand. The reason for this is the low price of local brands w.r.t. Aquafina

and also lesser margin on each bottle of mineral water sold. If Aquafina can lower its price it can be the

No. 1 choice of the retailers.

Which company provides better service – Pepsi or Coca-cola?

We found that Pepsi is leader in case of giving schemes and sale of Pepsi volume wise is more than that

of coke but coke comes out as a clear winner in case of after sale service.There have been to many

grievances from the retailers of pepsi outlets . From the feedback that I got from the retailers I can

conclude that in the bistupur area if there is problem in visicooler it takes time for the mechanic to

operate on time.Again regarding the replacements of the products it takes time While this is good in

case of coke

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SWOT ANALYSIS

STRENGTHS:-

PEPSI has an excellent brand image.

PEPSI has effective and stronger base in India than its competitors like COKE who too have a good

name in soft drink market.

Retailer friendly schemes.

Continuous & strategic improvements in the promotional strategies.

Introduction of new flavors continuously from time to time(like nimbooz)

Large number of celebrity endorsed.

A very good sales force.

WEAKNESSES: -

Scheme and offers are not disclosed properly to all the outlets

Replacements of the products is time consuming and long procedure

PEPSI not able to keep the retailers satisfied as they are not providing with the coolers on time as

compared to COKE.

Interior part of the city is not looked after as the main city as the roads are not good enough for the

vehicles to reach there.

Support material not provided to the retailers as being provided by the competitor (Coke).

In terms of Stands, Dealer board, and other Add. Material Coke is ahead of PEPSI in Jamshedpur.

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OPPORTUNITIES:-

Enjoys top position in the “Jamshedpur” market in case of voluminous sale.

Consumers are showing increased interests in PEPSI products.

Promotional activities provide it an edge over the competitors

Top position in C.S.D. products in India gives it an advantage.

Pepsi can explore its distribution network in interior area also.

THREATS:-

Some dealers are not very satisfied with the services of Pepsi which directly affect the sale of product.

Competitor’s products already available in the market with similar schemes.

Tough competition from Coke.

Strategic pricing by competitors may affect the company’s wafer thin margins.

Pesticide controversy taking away the consumer.

Many religious Guru asking there followers not to consume soft drinks like Ramdev baba has named it

as a “toilet cleaner”.

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FINDINGS AND CONCLUSION

The collected data which were analyzed came out with the following conclusions:-

The numbers of Pepsi outlets is more in Bistupur and Jugsalai than the numbers of competitor’s outlets

that results in increase in sale of PEPSI products.

Selling of Pepsi is more volume wise while coke is market leader in case of after sales service and

promotional activities.

In cola segment Thumps-Up is the main competitor of PEPSI, In orange segment Fanta is the main

competitor of MIRINDA, In lime segment Sprite is the main competitor of 7UP & MOUNTAIN DEW, In

mango segment Maaza is the main competitor of SLICE.

There is distribution problem in Jugsalai. Some outlets in Bistupur had low stocks. We know that “cold

is sold” . When the product are not in the visicooler , then the retailer changes the mind of the

customer to buy the coke product and gradually the demand for Pepsi decreases.

There was acute shortage of slice and aquafina in the outlets.

Sometimes the sehemes is not properly known to the retailers.

The offer and other scratch cards were not provided to the outlets due to which retailers were

dissatisfied.

Most of the dealers want glow sign and chilling equipments, which they are asking from long time.

Most of the consumer doesn’t like the taste of PEPSI due to its Sweetness and low fizz.

Cost of each bottle of Aquafina is too high as compare to the competitors. So most of the dealers

prefer to sale other brands of competitors with the objective of having higher profit margin.

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The company should look after to foster the service well and efficiently to the outlets which are existing.

Because if the service is not effective in the outlet company may lose the outlets trust. I would like to

recommend that to maintain a higher market share and also to retain the trust of the retailers prompt service

should be provided and any grievance against the company should be immediately attended to. Supply of the

products should be properly maintained in order of not losing the customer.

The company should be particular about the gifts and incentives to be given on time to the retailers if

committed to them so that the trust is maintained. Company must distribute a gift and schemes through a

proper channel.

The standard of the after sales service provided by the Pepsi needs to improve.

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At present the company is slow regarding providing the glowsine boards, visi coolers, night cover ,maintaining the visicooler .I would like to recommend that a definite strategy should be worked out and a separate department should handle this.

Regular visit by the company technician to solve problems regarding visi cooler should be arranged to achieve

better sales.

There should be some criteria for the replacements of defected products. Company must provide a service for

the expiry goods.

Pepsi is a sweet and low fizz soft drink that everybody knows and so lots of people do not like so to catch the

customers Pepsi should come out with more fizz.

More improvement is required in the distribution network during the peak season . The company should

check to provide all the SKUs to the retailers.

Company must regularly monitor on the distributors. The distributors hides the schemes issued by the

company from them which may affect the sale volume. So the company should check it from time to time.

Company must provide a gift or bonus to the salesman and distributors who achieve the targets.

The company should Perform the corporate social responsibility to improve its image.

Pepsi should maintain the regularity of supply to meet the demand .It has been seen that the supply of

Mineral Water (Aquafina) and slice is irregular.

LIMITATIONS OF THE SURVEY

Nothing is 100% perfect . There is some loopholes or gaps which I tried to remove but still I found some

limitations .

1. Survey was done in summer (may-june) and it is the peak season foe any soft drink industry like pepsico, so

the figure of market share is not accurate for whole year of sales.

2.Only 10 days data is taken

3.The data can vary due to climatic factors.

LIMITATIONS OF THE TRAINING PROGRAM

Same marketing strategies do not last for long time. Because , every business industry keep changing their

strategies. So , two months time period is very less for studying the whole strategy of the company

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APPENDIX

QUESTIONNAIRE ASKED FROM DEALERS:-

Q1. Name and address of the dealer?

Q2. Number of carets sold per month of soft drinks.

(a) 0 to 50 caret (b) 50 to 100 carets

(c) 100 to 150 carets (d) 150 to 200 carets

Q3. When a comes to your shop your outlet which brand of soft drinks does he/she demands?

(a)Pepsi (b) Coca-Cola

(c) Others

Q4. Which company soft drink is demanded most?

(a) Pepsi (b) Coca –Cola

(c) Others

Q5. What is the frequency of the visit of Pepsi executive?

(a) Daily (b) Alternative day

(c) Weekly (d) Fortnightly

Q6. Which company Visi Cooler do you have?

(a) Pepsi (b) Coca Cola

(c) Both (d) Own

(e) Not having any

Q9. Has Pepsi Company provided you with Sign board/Display rack?

(a) Yes (b) No

Q10. Has Coke Company provided you with Sign board/Display rack?

(a) Yes (b) No

Q11. Are you satisfied with the service provided by pepsi?

(a)Yes (b) no

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BIBLIOGRAPHY

www.pepsizone.com

www.pepsiindia.com

www.pepsico.com

www.pepsichannel.com

www.Wikipedia.com

Marketing Research- Rajan Saxena

Marketing Management-Philip Kotler

Magazines(marketing management 4P’s)

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THANK YOU

Upendra Kumar Shaw Project

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Transcript of Upendra Kumar Shaw Project