172673780 pepsi project report

8/12/2019 172673780 Pepsi Project Report

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A SUMMER TRAINING PROJECT REPORT ON

“ANALYSIS OF ANTI PEPSI BEHAVIOUR OF

RETAIL OUTLETS”

SUBMITED TOWARDS PARTIAL FULFILMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY-

PRADEEP PANKAJ SINGH

PGDM(2008-10)

ENROLMENT NO-2029742128.

FACULTY GUIDE INDUSTRY GUIDE

MR. VISHAL AGGARWAL MR. RAVEND BIJLANI ASSOCIATE PROFESSOR C.E. SHUKLA SALES

BLS INSTIUTE OF MANAGEMENT PEPSICO HOLDINGS INDIA

LIMITED, LUCKNOW,

BLS INSTITUTE OF MANAGEMENT

Opposite Mohan Meakin Factory,

Mohan Nagar, Ghaziabad.

http://www.blsim.org/



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PREFACE

The PGDM programme is well structured and integrated course of business studies. The main objective of practical training at PGDM level is to

develop skill in student by supplement to the theoretical study of businessmanagement in general. Industrial training helps to gain real life knowledge

about the industrial environment and business practices. The PGDM programme

provides student with a fundamental knowledge of business and organizational

functions and activities, as well as an exposure to strategic thinking of

management.

In every professional course, training is an important factor. Professorsgive us theoretical knowledge of various subjects in the college but we are

practically exposed of such subjects when we get the training in the organization.

It is only the training through which I come to know that what an industry is andhow it works. I can learn about various departmental operations being performed

in the industry, which would, in return, help me in the future when I will enter the

practical field.

Training is an integral part of PGDM and each and every student has to

undergo the training for 2 months in a company and then prepare a project reporton the same after the completion of training.

During this whole training I got a lot of experience and came to know

about the management practices in real that how it differs from those oftheoretical knowledge and the practically in the real life.

In today’s globalize world, where cutthroat competition is prevailing in the

market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities

and it is true that “Experience is the best teacher”.



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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for

Pepsico Holdings India Limited. It has been an enriching experience for me toundergo my summer training at PEPSI, which would not have possible without

the goodwill and support of the people around. As a student of BLSIM I would

like to express my sincere thanks too all those who helped me during my

practical training programme.

Words are insufficient to express my gratitude toward Mr. Ravend

Bijlani, the Customer Executive of Shukla Sales, Lucknow, Mr. Vishal

Aggarwal Project Guide and Mr. Kuldeep Kaul (Marketing Head ofDepartment Of BLSIM)

My heartfelt thanks go to all who helped me to gain knowledge about the

actual working and the processes involved in various departments.

However, I accept the sole responsibility for any possible error of omission

and would be extremely grateful to the readers of this project report if they bring

such mistakes to my notice.

Thanking You

Pradeep Pankaj Singh

Enrollment No. 2029742128



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DECLARATION

I, Pradeep Pankaj Singh, do hereby declare that the summer internship

project report submitted by me for the partial fulfillment of requirement for the

Post Graduate Diploma in Management of BLS Institute of Management

Ghaziabad. This has not been submitted to any other university/ institution for the

reward of any degree/ diploma certificate.

Pradeep Pankaj Singh



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INDEX

Sr.No. Content Page No.

1. Executive Summary 6

2. Objective of Summer Training 7

3. Introduction of Project 8

4. History of Company 9-11

5. Company Profile 11-41

6. Research Methodology 42-48

7. Project Analysis 49-61

8. Finding & Suggestion 61-62

9. Conclusion 63

10. Questionnaire 64

11. Bibliography

65



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EXECUTIVE SUMMARY

I, Pradeep Pankaj Singh felt privileged to be a part of BLS Institute

of Management Mohan Nagar, Ghaziabad. I did my summer internship training

in Pepsico Holdings India Limited a FMCG sector company. My project title is

“ANALYSIS OF ANTI PEPSI BEHAVIOUR OF RETAIL OUTLET”.

The project’s basic objective is to analyzing the anti Pepsi behavior

of retail outlets under the distributorship of Shukla Sales, sitapur road, lucknow.

In this project I surveyed in areas of Shukla Sales and asked selected questionsto the outlet owners who were either not selling pepsi products or selling in very

less quantity.

Out of my project I learnt these things:

Pepsi should understand the expectations of people If one wants to grow in

FMCG sector one should keep the following factors in mind that the products areeasily available to the consumers, to improve the quality of products from time to

time, competitive services should be provided to the retailers, the price of the product should be low and last but not the least the visibility and the promotional

strategy should be such that it hits people’s mind.



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OBJECTIVE OF THE SUMMER TRAINING

TOPIC : - “Analysis of Anti Pepsi Behaviour of the Retail Outlets”

During my summer training I have worked on the topic “Analysis of Anti

Pepsi Behaviour of the Retail Outlets”

In Pepsi Co India Holding Pvt. Ltd the work of Anti Pepsi Outlet Survey was given

to me . I have done this survey keeping in mind the following objectives

which I have mentioned below

Study those outlets which are not promoting Pepsi products in the area covered in

Shukla Sales, Lucknow

To analyze the reasons of not selling Pepsi at retailers level.

To study the retailers satisfaction.

To find out the ways to enhance the sale of Pepsi.



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COMPANY’S HISTORY

BEVERAGES

Pepsi Cola Company

Caleb Bradham, a New Bern, N.C. druggist who first formulated Pepsi-cola,founded Pepsi Co.’s beverage business at the turn of the century i.e. in the year 1890. Ayoung phannacist Called Bradham began experimenting in 1890 as a cure fordyspepsia (indigestion) with combination of spices, 1 juices and syrups and created a

refreshing new drink to serve his customer. He succeeded beyond all expectations as heinvented the new beverage now known around the world as "PEPSICOLE"

In 1902, he launched the Pepsi Cola Company in the back room of pharmacy,and applied to U.S. patient office for Trade Mark. The business began to grow and onJune 16,1993, Pepsi-Cola trademark was officially registered with U.S. office. Bradhambelieved marketing would e the key to

PEPSI-COLA prosperity and in his first year of business he spent $1900 on advertisingwhen he sold 40,000 liters of syrup. In 1905 he built Pepsi fits bottling plant. Three moreplants followed soon and in 1907, he was selling 50,000 liters year.

Troubles started at the end of the First World War when Bradham over stockedsugar at high price, which subsequently dipped in 1920. By 1922, the company wasinsolvent by 1923, it went bankrupt and Bradham returned to pharmacy.

In 1931, the company went bankrupt for the second time. At this time charlessGroth, president of a giant candy company both the trademark. His success came whenhe offered a 12-ounce bottle at 5 cent while other colas were sold at the same price in 6ounce bottles. In 1936, Pepsi has a $2 million net profit.

Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsiand other Pepsi-Cola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew,slice and Mugvrands- Account for nearly one third of total soft drink sales in the UnitedStates, a consumer marker totaling about $56 billion.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. TodayLiption is the biggest selling ready to drink tea brand in the United States. Outside theUnited States, Pepsi-Cola Company's soft drink operations include the business of even-up International; Pepsi-Cola beverages are available in about 170 countries.

Pepsi-Cola began selling it products internationally in 1934 with its operations inCanada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola productsaccount for about a quarter of all soft drinks sold internationally. In addition to brands



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marketed in the United States, Major products include Mirinda and Pepsi Max.

Pepsi-Cola provides advertising, marketing, sales and promotional support to

Pepsi-Cola bottles and food service customers. This includes some of the world lovedand most recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young.

In 1940, history was made when the first advertising jingle was broadcastnationally. The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred tothe price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record andwas recorded into fifty-five languages.

In 1964, Diet Pepsi was introduced.

THE BUSINESS

PepsiCo. Has a worldwide operation in 3 fields

Non Alcoholic beverage Snack Foods. Fruit Juices

Pepsi company profile

PepsiCo is a world leader in convenient snacks, foods and beverages, withrevenues of more than $39 billion and over 185,000 employees.

PepsiCo is a world leader in convenient snacks, foods and beverages, withrevenues of more than $39 billion and over 185,000 employees.

The company consists of PepsiCo Americas Foods (PAF), PepsiCo AmericasBeverages (PAB) and PepsiCo International (PI).

PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses inMexico. PAB includes PepsiCo Beverages North America and all Latin Americanbeverage businesses. PI includes all PepsiCo businesses in the United Kingdom,Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200countries and generate sales at the retail level of more than $98 billion.

Some of PepsiCo's brand names are more than 100-years-old, but the corporationis relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola andFrito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker OatsCompany, including Gatorade, in 2001.



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PepsiCo offers product choices to meet a broad variety of needs and preference --from fun-for-you items to product choices that contribute to healthier lifestyles.

PepsiCo’s mission is ―To be the world's premier consumer products companyfocused on convenient foods and beverages. We seek to produce healthy financial

rewards to investors as we provide opportunities for growth and enrichment to ouremployees, our business partners and the communities in which we operate. And ineverything we do, we strive for honesty, fairness and integrity.‖

Shareholders

PepsiCo (symbol: PEP) shares are traded principally on the New York StockExchange in the United States. The company is also listed on the Chicago and Swissstock exchanges. PepsiCo has consistently paid cash dividends since the corporationwas founded.

Corporate Citizenship

At PepsiCo, we believe that as a corporate citizen, we have a responsibility tocontribute to the quality of life in our communities. This philosophy is expressed in oursustainability vision which states: ―PepsiCo’s responsibility is to continually improve allaspects of the world in which we operate – environment, social, economic -- creating abetter tomorrow than today.‖

Our vision is put into action through programs and a focus on environmentalstewardship, activities to benefit society, and a commitment to build shareholder valueby making PepsiCo a truly sustainable company.

PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York, approximately 45minutes from New York City. The seven-building headquarters complex was designedby Edward Durrell Stone, one of America's foremost architects. The building occupies 10acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, aworld- acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and featuresworks by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander

Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardensoriginally were designed by the world famous garden planner, Russell Page, and havebeen extended by François Goffinet. The grounds are open to the public, and a visitor'sbooth is in operation during the spring and summer.

PEPSICO BEVERAGES NORTH AMERICA (PBNA)

http://www.pepsico.com/PEP_Company/Overview/





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PepsiCo’s beverage business was founded 1898 by Caleb Bradham, a NewBern, North Carolina druggist, who first formulated Pepsi-Cola.

Today, Brand Pepsi is part of a portfolio of beverage brands that includescarbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks,

isotonic sports drinks, bottled water and enhanced waters. PBNA has well known brandsuch as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water,Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twisterand Tropicana Season’s Best.

PBNA manufactures and sells concentrate for some of these brands to licensedbottlers, who sell the branded products to independent distributors and retailers. PBNAprovides advertising, marketing, sales and promotional support for its brands. Thisincludes some of the world's best-loved and most-recognized advertising.

In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-to-

drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks.

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business.In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time,consumers could enjoy the fresh taste of pure not-from-concentrate 100% Floridaorange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, becamethe company’s flagship product. PepsiCo acquired Tropicana, including the Dole juicebusiness, in August 1998.



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SoBe became a part of PBNA in 2001. SoBe manufactures and markets aninnovative line of beverages including fruit blends, energy drinks, dairy-based drinks,exotic teas and other beverages with herbal ingredients.

Gatorade thirst quencher sport drinks was acquired by The Quaker Oats Company

in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the firstisotonic sports drink. Created in 1965 by researchers at the University of Florida for theschool's football team, "The Gators," Gatorade is now the world's leading sport's drink.

PepsiCo Beverages North America includes the United States and Canada.

LATIN AMERICA BEVERAGES

The Latin Americas Beverage business features a powerful suite of powerhouse

brands and distinct products tailored for the market. Gatorade outsells the nearestcompetitor more than five to one and, in Sao Paulo---7UP H2Oh! --- a lightly carbonated,is dominating the competition in its lead market.

PepsiCo Americas Foods

FRITO-LAY NORTH AMERICA

PepsiCo's snack food operations had their start in 1932when two separate events took place. In San Antonio, Texas, Elmer Doolin bought therecipe for an unknown food product – a corn chip – and started an entirely new industry.The product was Fritos brand corn chips, and his firm became the Frito Company.

That same year in Nashville, Tennessee, Herman W. Lay started a businessdistributing potato chips. Mr. Lay later bought the company that supplied him withproduct and changed its name to H.W. Lay Company. The Frito Company and H.W. LayCompany merged in 1961 to become Frito-Lay, Inc.

Major Frito-Lay products include Lay’s potato chips, Doritos flavored tortilla chips,Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles potatochips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, Lay’s Staxpotato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito-Lay also sells avariety









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ofbranded dips, Quaker Fruit & Oatmeal bars, Quaker Quakes corn and rice snacks,Grandma’s cookies, nuts and crackers.

Frito-Lay North America includes Canada and the United States

QUAKER FOODS NORTH AMERICA

The

Quaker Oats Company was formed in 1901 when several American pioneers in oatmilling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and WilliamHeston had established the Quaker Mill Company. The figure of a man in Quakerclothes became the first

registered trademark for breakfast cereal and remains the hallmark for Quaker Oatstoday.






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In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner,George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher,known as "The Oatmeal King," had founded German Mills American Oatmeal Companyin 1856.

Combining The Quaker Mill Company with theStuart and Schumacher businesses brought together the top oats milling expertise in thecountry as The Quaker Oats Company.

The first major acquisition of the company was Aunt Jemima Mills Company in1926, which is today the leading manufacturer of pancake mixes and syrup. Gatoradewas acquired in 1983.

In 1986, The Quaker Oats Company acquired the Golden Grain Company,producers of Rice-A-Roni.

PepsiCo merged with The Quaker Oats Company in 2001.

LATIN AMERICA BEVERAGES

The Latin Americas Foods business includes operations in Brazil, Argentina,Colombia, Peru and Venezuela. This business continues to grow organically andthrough acquisitions like the Lucky snacks business in Brazil.






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PEPSICO INTERNATIONAL

PepsiCo International includes all PepsiCo businessesin the United Kingdom, Europe, Asia, Middle East and Africa.

Pepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the

1950s. Today, PepsiCo beverages are available in more than 170 countries andterritories. Brands include Aquafina, Gatorade and Tropicana.

In addition to brands marketed in the United States, PepsiCo International brandsinclude Mirinda, Seven-Up and many local brands.

PepsiCo began its international snack food operations in 1966. Today, products areavailable in nearly 170 countries. Often PepsiCo snack food products are known by localnames. These names include Gamesa and Sabritas in Mexico, Walkers in the UnitedKingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and others. The

company markets Frito-Lay brands on a global level, and introduces unique products forlocal tastes.

PepsiCo. Has a worldwide operation in 3 fields

Non Alcoholic beverage Snack Foods. Fruit Juices






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PepsiCo India Holdings Private Limited

PepsiCo, the world leader in convenient foods and beverages, welcomes you toa community of over 157,000 employees spread over more than 200 countries and

territories across the globe with annual revenues in excess of $33 billion. As part of itssustainable development initiatives, PepsiCo India has been a committed leader in thepromotion of rain water harvesting, water conservation recycling and the reduction ofeffluent discharge. Thus, we seek to produce healthy financial rewards to investors aswe provide opportunities for growth and enrichment to our employees, our businesspartners and the communities in which we operate. And in everything we do, we strivefor honesty, fairness and integrity.

Company Facts

Company Name:PepsiCo India Holdings Private Limited

Industry:Food & Beverage / Catering / Restaurant

Type of Company:Private Limited Company, Foreign Based Company

Location:

DLF Corporate Park, S Block, Qutab Enclave, Phase III Gurgaon 122 002

History

Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCoentered India in 1989 and in the span of a little more than a decade, has grown tobecome the country’s largest selling soft drinks company as well as dominant player inthe snack food segment (Frito-Lay is the leader in the branded potato chips market). Tosupport the operations are the group’s 38 bottling plants in India, of which 16 arecompany owned and 22 are franchisee owned.

Product and Services

PepsiCo’s mission is to be the world’s premier consumer Products Companyfocused on convenient foods and beverages. The company seeks to produce healthyfinancial rewards to investors as it provides opportunities for growth and enrichment toits employees, business partners and the communities in which it operates. PepsiConow has many global brands, which include: Pepsi-Cola, Diet Pepsi, Mountain Dew (Diet& Regular), Gatorade, Walkers, Lays Potato Chips, Doritos Tortilla Chips, TropicanaPure Premium Orange Juice, 7-UP (Outside USA), Cheetos Cheese Flavoured Snacks,

Quaker Cereals, Aquafina Bottled Water, Ruffles Potato Chips, Mirinda, Tostitos TortillaChips, Sierra Mist (Diet & Regular) and Fritos Corn Chips.



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Culture and Values

Our Guiding Principles:

We always strive to Care for customers, consumers and the world we live in. We

are driven by an intense, competitive spirit in the marketplace, but we direct this spirittowards solutions that achieve a win for each of our constituents as well as a win for thecorporation. The test of our standards is that we must be able to personally endorse ourproducts without reservation and consume them ourselves. This principle extends toevery part of the business, from the purchasing of ingredients to the point where ourproducts reach the consumer’s hands. Speak with truth and candor. We speak up, telling the whole picture, not just what isconvenient to achieving individual goals. In addition to being clear, honest and accurate,we take responsibility to ensure our communications are understood.Balance short term and long term. We make decisions that hold both short-term andlong-term risks and benefits in balance over time. Without this balance, we cannot

achieve the goal of sustainable growth.

Win with diversity and inclusion. We leverage a work environment that embracespeople with diverse backgrounds, traits and different ways of thinking. This leads toinnovation, the ability to identify new market opportunities, all of which helps developnew products and drives our ability to sustain our commitments to growth throughempowered people.

Respect others and succeed together. This company is built on individualexcellence and personal accountability, but no one can achieve our goals by actingalone. We need great people who also have the capability of working together, whether

in structured teams or informal collaboration. A spirit of fun, our respect for others andthe value we put on teamwork make us a company people enjoy being part of, and thisenables us to deliver world-class performance

PEPSI COLA INTERNATIONAL SRATEGY

Focus on Business growth Target core brands

Satisfy Market Priorities

Pepsi's Global Strategy



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When the "You're in the Pepsi Generation"advertising campaign launched in 1963, it may have been the first time a brand wasmarketed primarily with an association to its consumers' aspirational attitudes. Adecidedly youth-oriented strategy, the campaign hoped to hook young Baby Boomerswhile they were still young. In 1984 Pepsi launched another long-running campaign,"The Choice of a New Generation," and in 1997 they debuted the "GeneratioNext"concept.

The newest campaign slogan, introduced this year, is "More Happy," whichdefinitely coincides with one concrete example of "more" in the packaging of Pepsiproducts today—more designs. Many more. At least 35 distinct design ideas will grace

the packaging of Pepsi's cans and bottles this year alone, and this design strategy maycontinue indefinitely.

Though not "generational" in word, the campaign certainly has a youth-orientedfeel with package designs, advertising, and websites that are fun and playful. PepsiCoworked closely with Peter Arnell and Arnell Group, based in New York City, to devise acomprehensive new strategy that would connect with Pepsi's core consumers. Arnellreinvented the Pepsi package as a meaningful and appealing communications tool forthe latest generation of youth that are not overwhelmed by media, music, or digitaldistractions.

Experiental packaging

Arnell Group (a wholly-owned subsidiary of Omnicom Group) is a design andbrand creation firm specializing in experiential design and product innovation, preferringto take complete branding and packaging projects from first concept to complete marketsolutions. Peter Arnell, currently chairman and chief creative officer of Arnell Group,formed the Arnell Group Innovation Lab in 1999 to place invention and innovation at theforefront in a collaborative laboratory for corporations interested in designing for nextgeneration products and experiences. Arnell applied many of his philosophies in thePepsi project.

Peter has taken a classic and turned it into a modern, innovative, and relevantmarketing and communications tool," said Ron Coughlin, chief marketing officer,beverages, PepsiCo International. The new global look launched in February with eightnew package designs across cans and bottles, and the campaign is unfolding in asimilar manner overseas. The can designs roll out one at a time approximately threeweeks apart to enhance the anticipation of discovery and to pique the interest ofcollectors.



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Product innovation today must be driven by deep consumer meaning andconnectivity," says Arnell. "It is less about unmet needs and more about giving peoplewhat they haven't asked for but are dying to have. Using design to turn packaging intopersonal consumer-powered media helps create the ultimate supportive and inspiringrelationship between Pepsi and its youth audience."

Thinking globally

The Pepsi can designs roll out one at a time, but the two-liter Pepsi bottles willhave three or four designs out at any given time.

Mike Doyle, creative director at Arnell Group, explains that there was a greatdepth of exploration and research that was conducted before even beginning to

formulate a new Pepsi packaging strategy. PepsiCo and Arnell Group traveledextensively to emerging markets to find key consumer product drivers for youth culturesand to learn how the Pepsi brand was perceived in different countries.

They found, somewhat surprisingly, that there were very few differences aroundthe world in how consumers felt about Pepsi's fun, effervescent brand image. "The brandequity is really consistent," says James Miller, marketing director, Pepsi-Cola North America. They also found many consistencies in youth cultures around the world in howtoday's youth is preoccupied with newness, discovery, and personalization of theirpossessions. Miller describes the design campaign's goal as "sustainable discovery,"where the consumer audience is constantly intrigued and engaged.

Designers at Arnell Group created the dozens of new and vibrant designs withonly a handful of blue and gray shades. Each design tells a story of sorts and each candesign has a unique website address on the side of the can. The first one on the "YourPepsi" can allows web users to design a digital billboard that will appear in TimesSquare, and one coming shortly will allow users to mix their own music online.

"We redefined packaging as media in the marketplace for Pepsi," says Doyle. "Itspeaks to youth in their language." Doyle believes that the designs succeed becausethey are able to capture the audience's mind space. "The designs are reflecting back tothe culture instead of talking to the culture or imposing on it."

Reassuringly Pepsi

Pepsi actually asked their loyal consumers what brand elements would have toremain so that they would be intuitively reassured that their favorite drinks were notchanging and the brand they trusted was still essentially the same. Their answer wasdirect and consistent. Pepsi-lovers needed to see three elements for sure—the Pepsi"globe," the iconic Pepsi blue, and the familiar tilted Pepsi capital letters.

Arnell Group updated the primary logo substantially and cleverly without reallyredesigning its key elements. The most recent logo design had the Pepsi wordmark ontop of and slightly overlapping the iconic Pepsi red-white-and-blue "globe." On theprevious can design, the wordmark wrapped halfway around the can, and the globe was



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off-center. The new cans and bottles have un-bundled the word and globe, making thenewly centered globe more of the hero, and the smaller Pepsi wordmark less prominent.

Television ad campaigns are reinforcing the globe-centric approach by featuringa boulder-sized Pepsi globe in various settings careening to and fro like a pinball. In the

ads and on the front of most of the new packages is the reassuring tag line: "SamePepsi inside, new look outside." Miller explains that it is customary and important toreassure consumers for at least six months in situations like this.

Miller also sees today's youth as demanding authenticity from the products theycome into contact with in their day-to-day experiences. The new Pepsi design strategy isversatile because it can be authentic and stay current, and it could also makeintroducing special seasonal or regional designs more intriguing and less disruptive."This is a new way of using packaging as media," explains Miller. "The consumer islooking for more variety and expecting more from their brands. They want to have adialogue with their favorite brands."

SHAREHOLDERS

Pepsi-co.Inc. (Symbol: Pep) shares are traded principally the New York StockExchange in the United Stated. The company is also listed on the Amsterdam, Midwest,Swiss and Tokyo stock exchange. Pepsi Co has consistently paid cash dividends sincethe corporation was founded.

CORPORATE CITIZENSHIP

Pepsi Co. believes that as a corporate citizen, it has a responsibility to contributeto the quality of life in its communities. This philosophy is put into action through supportof social agencies, projects and programs. The scope of this support is extensive-ranging from sponsorship of local programs and support of employee volunteeractivities, to contributions of time, talent, and funds to programs of national impact. Eachdivision is responsible for its own growth program.

GROWTH GOALS

Set a winner's growth goals. If you act like no. 2, you will always be no.2

Employment

Hiring people who love to work and thrive on risk.

Target Core Brands

Put emphasis on the firmly established products and try to increase their market share.

Market Priorities



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Establish market priorities and work towards achieving the maximum good for thepriorities.

PEPSI GLOBAL LOGO

While taking to consumers some years back, Pepsi carried one exercise

consumers, "Take a piece of paper and draw what Pepsi means to you".

Interestingly, a lot of consumers especially kids drew the Pepsi's globe.

What is the globe? Well, its red, white and blue which says a lot of things.

Secondly, It has an incredible balance, modem kids says it has some incredible yin andyang.

Thirdly, it has a quality of complete harmony.

Lastly, it speaks about openness and eternal youthfulness.

The biggest thing about the globe is that it is 3 dimensional logo, which no other brandhas.

In the Pepsi logo, blue colour has been underlined and used as a background colour.Blue colour. Blue colour is associated with cold and refreshment. Blue Jeans are afavorite piece of clothing for the youth's worldwide. Thus the colour hits the 2dimensions:

It supports the product quality-Refreshment It reinforces consumer's affection for their favorite things.



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Our Mission, Values and Guiding Principles

VISION

As we stand at the crossroads of the new millennium, it's time to eradicate our

focus and energy single-mindedly to our Vision... The Vision to be the Best.

And what is that vision?

"To be the best consumer products company in the eyes of our suppliers, consumers,employees and shareholders."



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"To become truly global company, by continuing to build a competitive and profitable

word wide refreshment beverage business."

The Pepsi challenge of the Millennium will be the test of the Best

The best in connecting with the customer ad the consumer, the best in marketing, thebest in selling, the best in quality, the best in processes and the best in people andteamwork.



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Mission

We aspire to make PepsiCo the world’s premier consumer Products Company,focused on convenient foods and beverages. We seek to produce healthy financialrewards to investors as we provide opportunities for growth and enrichment to ouremployees, our business partners and the communities in which we operate. And ineverything we do, we strive to act with honesty, openness, fairness and integrity.

The behaviors that will help us achieve our mission are articulated in our ValuesStatement.

Values

PepsiCo Values & Philosophy

Our Values & Philosophy are a reflection of the socially and environmentallyresponsible company



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We are committed to delivering sustained growth through empowered people actingresponsibly and building trust.

What It MeansSustained Growth is fundamental to motivating and measuring our success. Our questfor sustained growth stimulates innovation, places a value on results, and helps usunderstand whether today's actions will contribute to our future. It is about the growth ofpeople and company performance. It prioritizes both making a difference and gettingthings done .

Empowered People means we have the freedom to act and think in ways that we feelwill get the job done, while adhering to processes that ensure proper governance andbeing mindful of company needs beyond our own.

Responsibility and Trust form the foundation for healthy growth. We holdourselves both personally and corporately accountable for everything we do. We mustearn the confidence others place in us as individuals and as a company. By acting asgood stewards of the resources entrusted to us, we strengthen that trust by walking thetalk and following through on our commitment to succeeding together.

Guiding Principles

We uphold our commitment with six guiding principles.

We must always strive to:

1. Care for our customers, our consumers and the world we live in.We are driven by the intense, competitive spirit of the marketplace, but we direct thisspirit toward solutions that benefit both our company and our constituents. Our successdepends on a thorough understanding of our customers, consumers and communities.To foster this spirit of generosity, we go the extra mile to show we care.

2. Sell only products we can be proud of.The true test of our standards is our own ability to consume and personally endorse theproducts we sell. Without reservation. Our confidence helps ensure the quality of ourproducts, from the moment we purchase ingredients to the moment it reaches theconsumer's hand.

3. Speak with truth and candor.

We tell the whole story, not just what's convenient to our individual goals. In addition tobeing clear, honest and accurate, we are responsible for ensuring our communicationsare understood.

4. Balance short term and long term.In every decision, we weigh both short-term and long-term risks and benefits.Maintaining this balance helps sustain our growth and ensures our ideas and solutionsare relevant both now and in the future.

5. Win with diversity and inclusion.We embrace people with diverse backgrounds, traits and ways of thinking. Our diversitybrings new perspectives into the workplace and encourages innovation, as well as theability to identify new market opportunities.

6. Respect others and succeed together.Our mutual success depends on mutual respect, inside and outside the company. It



27

requires people who are capable of working together as part of a team or informalcollaboration. While our company is built on individual excellence, we also recognize theimportance and value of teamwork in turning our goals into accomplishments.

COMMITMENT

Diversity isn't just the right thing to do. It's the right thing to do for our business,and we're committed to making diversity and inclusion a way

of life at PepsiCo.

In our business, understanding different cultures is a major advantage. In fact, weview diversity as a key to our future. Our brands appeal to an extraordinarily diversearray of customers. And they are sold by an equally diverse group of retailers.To truly understand the needs of our customers and consumers -- and succeed in themarketplace -- PepsiCo must reflect that diversity in our employees, our suppliers and ineverything we do.Offering a workplace where diversity is valued helps us build the top-quality workforce socrucial to our success -- by enabling us to attract and retain great people from a widespectrum of backgrounds.

CommunityWe are committed to celebrating and supporting diversity in our community

through our corporate giving and community programs. PepsiCo gives to the

community through the PepsiCo Foundation, the PepsiCo Community AffairsDepartment and PepsiCo divisions. The PepsiCo Foundation and our operating divisionsgave grants to more than 1,000 community organizations, of which a significant portionwere organizations championing diversity. We also support organizations through giftsin-kind, such as product, premiums, printing, meeting arrangements, equipmentdonations, support of events, conventions, journals and meetings.

CustomersWe are committed to marketing our products to all groups, treating all customers

with respect, sensitivity and fairness, while providing some of the greatest products onearth. Early in its history -- as far back as the 1940s -- Pepsi-Cola recognized the

importance of diversity. Pepsi pioneered targeted marketing and national lifestyleadvertising featuring minorities. We developed education and sports programsspotlighting minorities. We partnered with many groups to create programs thatcontribute to minority communities. We sponsored major music tours by entertainerssuch as Tina Turner. We support minority media and interests. Over the years, oursuccess has been recognized with numerous awards. Most importantly, our products arepurchased and enjoyed by all groups of consumers.

SuppliersWe are committed to welcoming business partners who represent all people and

purchasing quality products and services from a diverse supplier base. PepsiCo is a

leader in seeking out and working with minority and women suppliers. In 2006, wesurpassed $1 billion in spending with minority and women vendors. It is our policy to

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promote the utilization of eligible M/WBE vendors in all aspects of the company'sbusiness.

Employees and Careers

We are committed to hiring and retaining the best talent to fill each and every jobin the corporation. And we are equally committed to fostering an atmosphere of caring,open communication and candor among our employees, where we treat each other withrespect.PepsiCo has been nationally recognized as one of the top places for women and

minorities to work. We were one of the first companies to begin hiring minorities inprofessional positions, as far back as the 1940s. We were the first Fortune 500 companyto have an African-American vice president.

That commitment to diversity continues today. We place a great deal of emphasison personal integrity and believe long-term results, from real accomplishments, are theonly fair way to judge performance. We respect individual differences in culture, ethnicityand color. PepsiCo is committed to equal opportunity for all employees and applicants.We are committed to providing a workplace free from all forms of discrimination. Werespect the right of individuals to achieve professional and personal balance in theirlives.

PepsiCo's commitment is underlined by our current diversity initiatives. They have

been formulated to ensure that we attain our core value of diversity as a competitiveadvantage.

Dedicated executives for managing diversity within our operating divisions.

Multi-year strategic plans for diversity are developed with the same vigor and goalsetting process as other business issues. Goals include diverse recruitment, improvedretention and fostering a more inclusive culture.

External Diversity Advisory Boards consisting of educators, politicians, practitioners andcustomers to advise PepsiCo senior management on a variety of issues relating todiverse audiences.

Annual employee performance reviews incorporating inclusion-related goals for allmanagers.

Mandatory annual Affirmative Action Planning process. Bi-annual organizational health survey incorporating diversity questions and requiring

analysis at the minority and female level. Senior management is held accountable forresults.

Corporate-sponsored multi-level program for training employees to work and manage inan inclusive environment.



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Employee networks to mentor and support diverse employees.

SUSTAINABLE ADVANTAGE

Three major sustainable advantages give PepsiCo acompetitive edge as we operate in the global marketplace.

Three major sustainable advantages give PepsiCo a competitive edge as we operate inthe global marketplace:

1. Big, muscular brands;2. Proven ability to innovate and create differentiated products; and3. Powerful go-to-market systems.

Making it all work are our extraordinarily talented and dedicated people.

When we take these competitive advantages and invest in them with dollars generatedfrom top-line growth and cost-saving initiatives, we sustain a value cycle for ourshareholders.

In essence, investing in innovation fuels the building of our brands.

This in turn drives top-line growth.

Dollars from that top-line growth are strategically reinvested back into new products andother innovation, along with cost-savings projects.

Thus, the cycle continues.

Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo. Mrs. Nooyileads one of the world’s largest convenient food and beverage companies, with 2007annual revenues of more than $39 billion. The company operates in nearly 200countries, and employs more than 185,000 people worldwide. Its principal businessesinclude: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1





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billion or more each in annualretailsales.

PepsiCo’s commitment to sustainable growth, defined by Mrs. Nooyi asPerformance with Purpose is focused on generating healthy financial returns while givingback to communities the company serves. This includes

meeting consumer needs for a spectrum of convenient foods and beverages,replenishing the environment through water, energy and packaging initiatives, andsupporting its employees through a diverse and

inclusive environment that recruits and retains world-class talent. The company is listedon the Dow Jones North America Sustainability Index.Mrs. Nooyi was named President and CEO on October 1, 2006, and assumed the role ofChairman on May 2, 2007. She has directed the company's global strategy for over adecade and was the primary architect of PepsiCo's restructuring, including thedivestiture of its restaurants into the successful YUM! Brands, Inc., the spin-off andpublic offering of company-owned bottling operations into anchor bottler Pepsi Bottling

Group (PBG), acquiring Tropicana, and the merger with Quaker Oats that brought thevital Quaker and Gatorade businesses to PepsiCo. Recently, she has been drivingcritical cross-business initiatives to enhance operations and enable PepsiCo to meet thechanging needs of consumers and retailers.Prior to becoming CEO, Mrs. Nooyi served as President and Chief Financial Officersince 2001, when she was also named to PepsiCo's board of directors. In this position,she was responsible for PepsiCo’s corporate functions, including finance, strategy,business process optimization, corporate platforms and innovation, procurement,investor relations and information technology.

Between February 2000 and April 2001, Mrs. Nooyi was Senior Vice President andChief Financial Officer of PepsiCo. Between 1996 and 1999, Mrs. Nooyi was Senior VicePresident of Corporate Strategy and Development.

Before joining PepsiCo in 1994, Mrs. Nooyi spent four years as Senior VicePresident of Strategy, and Strategic Marketing for Asea Brown Boveri. She was part ofthe top management team responsible for the company's U.S. business as well as itsworldwide industrial businesses, generating about one-third of ABB's $30 billion in globalsales.

Between 1986 and 1990, Mrs. Nooyi worked for Motorola, where she wasVice President and Director of Corporate Strategy and Planning, having joined thecompany in 1986 as the business development executive for its automotive andindustrial electronic group.Prior to Motorola, she spent six years directing international corporate strategy projects

at the Boston Consulting Group. Her clients ranged from textiles and consumer goodscompanies to retailers and specialty chemicals producers.



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Mrs. Nooyi began her career in India, where she held product manager positionsat Johnson & Johnson and at Mettur Beardsell, Ltd., a textile firm.In addition to being a member of the PepsiCo board of directors, Mrs. Nooyi serves as amember of the boards of the Federal Reserve Bank of New York, the InternationalRescue Committee and Lincoln Center for the Performing Arts in New York City. She is

a Successor Fellow of Yale Corporation, member of the Board of Trustees ofEisenhower Fellowships, a member of the Executive Committee of the TrilateralCommission and currently serves as Chairman of the US-India Business Council.She holds a BS from Madras Christian College in Madras, an MBA from the IndianInstitute of Management in Calcutta and a Master of Public and Private Managementfrom Yale University. Mrs. Nooyi is married and has two daughters.

27-April-08Massimo F. d’Amore was named Chief Executive Officer of PepsiCo AmericasBeverages in November 2007. PepsiCo Americas Beverages has a beverage portfolioincluding Pepsi-Cola North America, Gatorade, Tropicana, all of PepsiCo’s Latin

American beverage businesses, and its North America PepsiCo Food Service division.Previously, Mr. d’Amore was Executive Vice President Commercial for PepsiCoInternational, a position he assumed in November, 2005, after serving as President,Latin America Region for 4 years and SVP, Corporate Strategy & Development forPepsiCo for 2 years. Mr. d’Amore was also Senior Vice President and Chief MarketingOfficer for Pepsi-Cola International (PCI), a position he assumed in 1998 and BusinessUnit General Manager (BUGM), Turkey/Central Asia since 1999.Prior to PepsiCo, Mr. d’Amore had a 15-year international career with Procter & Gamblein Operations, Marketing and General Management in Europe and North Africa.Mr. d’Amore is a native of Italy and an engineering graduate from the Swiss PolytechnicInstitute in Lausanne, where he also earned a Master of Science Degree. He has lived in

Italy, Switzerland, Germany, Belgium, Morocco, France and for the last 13 years in theU.S. He is fluent in English, Italian and French; and has a working command of Spanishand German. He has three children and resides in Westchester.PepsiCo is one of the world’s largest convenient food and beverage companies, with2007 revenues of more than $39 billion. The company operates in nearly 200 countries,and employs more than 185,000 people worldwide. The PepsiCo portfolio includes 18brands that generate $1 billion or more each in annual retail sales.

PepsiCo India’s commitment to Performance with Purpose

Performance with Purpose articulates PepsiCo India's belief that its businesses areintrinsically connected to the community and world that surrounds it. Performance withPurpose is about delivering more than financial performance, it’s about stayingcommitted to continuously giving back to the community and helping enrich society.

To deliver on this commitment, PepsiCo continues to build on its strong foundation ofachievements and scale up its initiatives while focusing on the following 4 critical areasthat are linked to its business and where it can have the most impact.



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Replenishing water

PepsiCo India continues to replenish water and aims to achieve positive water balanceby 2009, which means it is committed to saving and recharging more water than it usesin its beverage plants

Waste to Wealth

PepsiCo India continues to convert Waste to Wealth, tomake cities cleaner. This award winning initiative has established Zero Solid Wastecentres that benefit more than 2,00,000 community members throughout the country

Partnership with Farmers

PepsiCo India’s Agri-partnerships with farmers helpmore than 15,000 farmers across the country earn more...

Healthy Kids

PepsiCo India stays committed to the health and

well-being of kids. It will continue to provide children with a diverse, healthful and fun



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portfolio, while simultaneously encouraging active lifestyle by expanding its Get Activeprogramme for kids, especially for school going children .

THE INDIAN SOFT DRINK HISTORY

Gold Spot is considered as the first branded soft drink in India it was introduced byParle in early forties. Coca-Cola was the foreign soft drink to be introduced in Indianmarkets. The Coca-Cola Company entered India in the early fifties, when four bottlingplants were set up at Mumbai, Kolkotta, Delhi, and Kanpur. Coca-Cola enjoyed a goodbeginning and dominated the market. Parle exports private limited, the major domesticplayer, and later in 1970 introduced ―Limca‖ lemon soft drink. Before Limca’s they hadattentively introduced ―cola Pepino‖ which was soon withdrawn from the market followingthe confrontation with Coca- Cola.

In July 1977 Coca-Cola left India following a public dispute over shareholding Structureand imports permits. Coca-Cola left a big gap, which was filled by several companieswho came forward pushing different brands in market. Parle Products introduced theirCola ―Thumps Up‖, pure drinks introduced

―Double Seven‖ ―Thrill‖, ―Rush‖, ―Sprint‖. At the same time various regional soft brandsplayed an independent role in their respective territories like ―Duke‖, ―mangola‖.

After coke was asked to leave India Pepsi began to lay plans to enter this huge market.Pepsi started its operations in April 1989 for beverages snack foods and exportbusiness. In 1990 first Pepsi Cola was produced in India. In the next year 1991,

production of Mirinda and 7up started, the production of Slice Teem, Fountain Pepsistarted in 1993.

Coca-Cola came back again in India in October 1993 and was launched in Agra.It joined hands with Parle Exports Pvt. Ltd. To enter India and gradually took over thesame company. The nineties also saw a new foreign entrant Cadbury Schweppes thatrolled out Canada dry and Crush in metropolitan cities. Pepsi entered the cloudy lemonmarket category by launching its Mirinda lemon in 1998.

In May 1999 a notification, presented the prevention of food adulteration (fourthamendment) Rules 1999, allowed the use of the artificial Sweeteners, aspartame and

acesulfame potassium in The formulation of soft drinks-which was what made the entryof Diet Pepsi and Diet Coke. Coca-Cola also rolled out its popular clear lemon drinkSprite in India in the same year 1999.

Soft drinks can trace their history back to the mineral water found in springs.

Soft drinks can trace their history back to the mineral water found in naturalsprings. Bathing in natural springs has long been considered a healthy thing to do; andmineral water was said to have curative powers. Scientists soon discovered that gascarbonium or carbon dioxide was behind the bubbles in natural mineral water.

The first marketed soft drinks (non-carbonated) appeared in the 17th century.

They were made from water and lemon juice sweetened with honey. In 1676, theCompagnie de Limonadiers of Paris were granted a monopoly for the sale of lemonade



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soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cupsof the soft drink to thirsty Parisians.

Joseph Priestley

In 1767, the first drinkable man-made glass of carbonated water was created byEnglishmen Doctor Joseph Priestley.

Three years later, Swedish chemist Torbern Bergman invented a generatingapparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman'sapparatus allowed imitation mineral water to be produced in large amounts.

John Mathews

In 1810, the first United States patent was issued for the "means of massmanufacture of imitation mineral waters" to Simons and Rundell of Charleston, SouthCarolina. However, carbonated beverages did not achieve great popularity in Americauntil 1832, when John Mathews invented his apparatus for the making carbonated water.John Mathews then mass-manufactured his apparatus for sale to soda fountain owners.

Health Properties of Mineral Water

The drinking of either natural or artificial mineral water was considered a healthypractice. The American pharmacists selling mineral waters began to add medicinal andflavorful herbs to unflavored mineral water.

They used birch bark, dandelion, sarsaparilla, and fruit extracts. Some historiansconsider that the first flavored carbonated soft drink was that made in 1807 by DoctorPhilip Syng Physick of Philadelphia. Early American pharmacies with soda fountains

became a popular part of culture. The customers soon wanted to take their "health"drinks home with them and a soft drink bottling industry grew from consumer demand.

The Soft Drink Bottling Industry

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonateddrink bottle tops during the early days of the bottling industry. Carbonated drink bottlesare under a lot of pressure from the gas. Inventors were trying to find the best way toprevent the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork BottleSeal" was patented by William Painter, a Baltimore machine shop operator. It was thefirst very successful method of keeping the bubbles in the bottle.

Automatic Production of Glass Bottles

In 1899, the first patent was issued for a glass-blowing machine for the automaticproduction of glass bottles. Earlier glass bottles had all been hand-blown. Four yearslater, the new bottle-blowing machine was in operation. It was first operated by theinventor, Michael Owens, an employee of Libby Glass Company. Within a few years,glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.

Ninety years after the invention of what become one of the most favored drinksglobally in 1988. Pepsi entered India flanged with heavy resources and riding the windsof change of a newly opened economy. First, Pepsi has only franchise unit. Pepsi gave

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his concentrate to small factory and they make beverage.

In 1988, Pepsi set up its offices in India. In this company Pepsi operates asPEPSI Foods Pepsi Co. India Holdings and Pepsi India marketing.

The mission was to change the tastes and life style of a common Indian, whoidentified soft drinks and beverages as a few available cold drinks, squashes andconcentrates.

When it came to a refreshing drink conservative consumers would back totraditional nimboo pani, jaljeeram lassi etc.

Although India has a per capita consumption as low as 3 per person ascompared to 400 in USm India has one of the largest number of potential consumers ina world with a population of an arab, Every Indian guzzles 27 bottles of soft drink everyyear, an increase of one bottle per capita consumption would mean stating 900 bottles

extra. India soft drink is of worth RS. 1800 crores with annual growth at the rate of20% to25%.

All the activities of Pepsi Foods Pepsi Co, India Holdings and Pepsi IndiaMarketing Company are controlled by business Unit (BU) located at GURGAON. ThisBU is divided into various marketing units (MU's). All except the North and Market Unitshave common borders with states comprising them.

The market units demarcate the areas, which are "Coboised" i.e.Have Company

owned bottling operations(COBO). In these units there are company owned bottlingplants while in other areas the operations are run by a franchisee these areas arereferred to as Fanchisee Owned Bottling Operations (FOBO'S) and some and in someothers Joint Venture operate.

COBO - In the COBO, the company has total control of the decisions andimplementations undertaken, but for this the company has to invest its own money.

FOBO - The FOBO’S are independent to take their own marketing and operationaldecisions with no major interference form the company.

The FOBO's are supplied the concentrate from the company and they have torun the show, there after. Pepsi maintains ownership of the trademarks and is primarilyresponsible for ownership in a local bottling operation. This helps Pepsi maintain strongtrademark on the other party's resource and expertise. The PCI workflow concentrateson Selling, Making and Delivering Pepsi- Cola.

Pepsi -Cola is a company with a "Low margin, high volume business" Pepsi Co.deals in the carbonated Soft Drinks (CSD's) Market.

CSD's fall in two categories-Cola and flavors. Coals concentrate on Pepsiwhereas flavors deal with orange and Lemon. In India the flavors are Mirinda Orange

and Lime. Slice is a fruit Juice concentrate based Drink.



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Starting out in 1989, with that name of "Lehar Pepsi", the company has grownleaps and bounds ever since with competition increasing with reentry of coke a fewyears ago. Thanks to an early lead and a better understanding of the market, Indiaremains amounts the handful of markets worldwide where Pepsi is ahead of its archivalCoke.

Despite being the global Pepsi has build its success on meeting out the Indiancustomer's needs. Pepsi has made its brand synchronize with localized events andtraditions. Pepsi maintained its top of mind awareness with roadside signage andreminders. The partner type relationship with bottles, FOBOs as well as COBOs covermost of the company adequacy.

One of the strongest weapons in Pepsi's armory is the flexibility it hasempowered its people with. Ht Pepsi every employee, may be a manager of a salesman,

have an authority to take whatever steps he or she feels will make the consumers awareof the brand and increase its consumption. Thus Pepsi believed in establishing andnurturing creditability of the salesman and making the joint commitment to growbusiness in accounts, All these factors together led to a high froth in the Indian marketand constantly increasing market share.

Product wise comparison of Pepsi with competitor Coca-Cola

Pepsi Coke, Thumps Up Pepsi Aha Mirinda ( orange+lemon+apple) Fanta(orange),Limca Teem Soda Slice Maaja 7UP Sprite Mountain dew Kinley(soda) Diet Pepsi Diet Coke Aquafina(mineral water) Kinley (mineral water)

Distribution Channel and strategies



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―Marketing channels are sets of interdependent organizations involved in the process ofmaking a product or service available for use or consumption‖

Philip Kotler

Distribution (Place) Strategies● Product availability where and when customers want them.● Involves all activities from raw materials to finished products

Basic Channels of Distribution

Distribution Objective Minimize total distribution costs for a given service output Determine the target segments and the best channels for each segment Objectives may vary with product characteristics e.g. perishables, bulky products, non-standard items, products requiring installation &

maintenance

DISTRIBUTION CHANNELS (Pepsi)

There are two marketing channels that involve in the transfer of product from theproducer to the consumer. The intermediaries involved in the transfer are distributorsand retailers.

DISTRIBUTORS

Distributors are appointed agents of the company who make orders to the companyby paying in advance through drafts, stock the products in their godowns and supplythem to outlets through their fleet of delivery was and a team of salesmen and drivers.

They are allowed to sell to company's product to the retailers in a specified area. Thecompany divides this area into routes. Each route is covered by one unit i.e. one de

Manufacturers/products

Agents/brokers

Wholesalers/distributors

RetailersRetailers

Consumers and organizational end users

Place



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livery van, one salesman one driver, one helper etc. These units and godown are theirmain investment. Distributors have to invest in empty bottles and crates too, so t hat theycan maintain a specified quantity of reserve stock and facilitate the quick ratation ofglass crates.

The company evaluates its distributors at the end of the year and makes plans forthe next year. Company fixes the targets for each distributor according to market size,last year’s sales, potential growth assumption based on deposit of empties andinstallation of coolers at outlets. Distributors are awarded with a fair margin of RS. 10 percrate for their service. This margin could be increased for the sale above the targets,company offers are met with distributors before appointing them. Distributor complyingwith many schemes and contests for its customers for pushing different brands andgiving various services. Company also offers many gifts like, briefcase, and handbags.T-shirts, caps etc.to encourage the distributors. If distributor does not agree with theconditions of these agreement company may reduce the area of distributor or may eventerminate the relationship.

RETAILERS

The sale of particular soft drinks depends a lot entirely on retailer’s wish. Like if he doesnot keep Aquafina and if his shop is at the prime location then certainly the customerwith turn towards other cola drinks like Bisleri, Bailley ,Kinley etc. This all goes to provethat retailer is king. So retailers require special focus from the company. Pepsi Co. helpsthe retailers to serve its customer better by providing good margin to them for storing itsproduct using merchandising to improve in-store product display, installing cooling

equipment in outlets to make the product ready to drink and offering different promotionschemes to them time to time to push different brands, Pepsi Co. Provides a fair marginof RS. 24 per crate to the retailers.

CUSTOMER SERVICE DEPARTMENT

Customer Service is a support function to sales and marketing Department and isconcerned with effectively dealing with all customer complaints

This starts from:

Ensuring Receipt, Documentation and Follow Up of all complaints to be take care ofwithin a specified time in order to achieve the ensure Customer (retailer) distributor andconsumer Satisfaction. The Customer complains directly through phone or pager orthrough the sales team visiting them. Types of Complaints handled are related to:

Consumer Signage and Schemes Supply and Service Quality of Product Cooling Equipment



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A Customer Service executive who in turn co-ordinates with five Customer ServiceRepresentative positioned in the five sales divisions in UP-Lucknow, Kanpur, Gorakhpur,LUCKNOW and Bareilly heads customer service department at the unit office. TheseCustomer Service Representative handle customer service functions in their respectiveterritories.

MARKETING DEPARTMENT

Marketing department is mainly concerned with promoting "TOM" i.e.‖ Top of the Mind Awareness for Pepsi as it is a consumer oriented organization. It performs the followingfunctions to build consumer and customer preference.

Signage: This includes putting up of glow gings, banners, wall paintings, hoardings,kiosks etc.

Promotions: This includes ad campaigns, sales promotions, new packages andbrand launches. Events this includes sponsoring events at national, state, district andcity level e.g. sports tournaments, rock shows Musical Nights, Dance competitions,School and college annual festivals etc.

All these activities are carried out by the unit office with the help of guidelinesissued by the BU in the form of an annual marketing calendar and budget.

Marketing department at the Unit Office is headed by a Marketing Manager andhas three Marketing Executives. The marketing department co ordinates with the five

sale division in UP-Lucknow, Kanpur, LUCKNOW, Goarakhpur and Bareilly toimplements the various marketing programs

ADVERTISING & PUBLICITY



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Pepsi Co. is one of the biggest and spenders in India. It is also one of the biggestglobal ad spenders. It has long a list of endorsers from pop star Ricky martin to file starsShahrukh Khan, Amitabh Bacchan etc. & Cricket stars Sachin Tendulkar, V.V.S Laxman,Harbhajan Singh etc. Hindustan Thompsom Associates, the big gets advertising agencyof India has the account of Pepsi Co. is known for its board cast advertising but it alsospends a lot in non board cast advertising i.e. hoarding, banners, posters stickers,specialties, hangar,dealer board, glow signboards, wall painting and news paper. The

expenses on these type of advertising are made at territory or unit level. LUCKNOWterritory has assigned two local advertising agencies R.D. Associates and Krishna for itsterritorial advertising.

Research Methodology

INTRODUCTION

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Business research can be defined as a systematic and objective process ofgathering, recording and analyzing data that provides information to guide businessdecisions. It is used either to understand market trends, to find the optimal marketingmix, to devise effective HR policies, or to find the best investment options.

In the present fast track business environment marked by cutthroat competition,many organizations rely on business research to gain a competitive advantage andgreater market share. A good research study helps an organization understandprocesses, products, customers, markets and competition and to develop policies,strategies, and tactics that are most likely to succeed.

ROLE OF BUSINESS RESEARCH IN DECISION-MAKING

For effective planning and implementation of business decisions, accurateinformation about the internal and external business environments is of primaryimportance. The key objective of business research is to provide accurate, relevant, and

timely information to the top management, so that they can make effective decisions.

The business decision-making process in an organization going through the followingkey interrelated stages:

Problem/opportunity Identification Problem/opportunity prioritization and selection Problem/opportunity resolution Implementing the selected course of action

Business Research helps the management in each of the stages by providing useful and

timely information

RESEARCH OBJECTIVE

1- Study the distribution network of Pepsi

2- To comparatively analyse the stock of Pepsi and coke with retailers of Pepsi.

3- To study the retailers satisfaction.

4- To find out the way to enhance the sale of Pepsi.

RESEARCH DESIGN

A research design is the arrangement of conditioned for collection and analysis ofdata in a manner that aims to combine relevance to the research purpose which



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economy in procedure. Main characteristics of research design can be summarized intwo words-

1- Anticipation2- Specification

My research design is ―DISCRIPTIVE RESEARCH DESIGN‖

In my research, researcher has conducted a market Survey of the Anti PepsiOutlets in Lucknow area.

TYPE OF RESEARCH:

The basic types of research are as follows :

1. Descriptive research:

The major purpose of this research is description of the state of affairs as it exist atpresent.

2. Analytical Research:

In this research, the researcher has to use facts or information already available these tomake, and analyze these to make a critical evaluation of the material.

3. Applied research:

It aims and finding a solution for an immediate problem facing a society or anindustry/business organization.

4. Fundamental research:

It mainly concerned with generalization & with the formulation of a theory

5. Quantitative Research:

It is based on the measurement of quantity or amount. It is applicable to phenomena thatcan be expressed in terms of quantity.

6. Qualitative Research:

It is concerned with the qualitative phenomenon, i.e., phenomena relating to or involvingor king.

7. Conceptual Research:



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It is related to some abstract ideas or theory.

8. Empirical Research:

It is data- based research, coming with a conclusions which are Capable of being

verified by the observation and experiment.9. Diagnostic Research:

Such a research fallow case –study method or in depth approaches to reach the basiccasual relation.

10. Exploratory Research:

The objective of this research is the development of hypothesis rather than their testing.

Census MethodIn this analysis Marketer have used census method instead of Sampling Method.Marketer have surveyed all retailers which do not sale Pepsi or sell very less and comeunder Shukla Sales Distributor at Sitapur Road , Lucknow.

STEPS IN THE RESEARCH PROCESS

1. Identifying & Defining Problem/ Opportunity

2. Planning the Research Design

3. Selecting a Research Method

4. Selecting the Sampling Procedure



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5. Data Collection

6. Evaluating the Data

7. Preparing and presenting the Research Report

Source of Information

In our research we have made use of both primary and secondary data.

PRIMARY DATA: Schedule Personal interview Telephonic interaction e-mail

SECONDARY DATA:

Articles published in different magazines. Article published in internet. Internet.

SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is thefirst stage of planning and helps marketers to focus on key issues. SWOT stands forstrengths, weaknesses, opportunities, and threats. Strengths and weaknesses areinternal factors. Opportunities and threats are external factors



45

S Things the company does well.

W Things the company does not do well.

O

Conditions in the external environmentthat favor strengths.

TConditions in the external environmentthat do not relate to existing strengths orfavor areas of current weakness.

Internal

External

● Production Costs

● Marketing Skills

● Employee Capabilities

● Financial Resources● Available Technology

● Company/Brand Image

SSttr r eennggtthhss aanndd

WWeeaakknneesssseess

( ( I I N N T T E E R R N N AA LL ) )



46

Strengths-

1. Believe on the customer satisfaction.2. Pepsi has a broader product line and outstanding reputation.3. Record revenues and increasing market share4. Number one maker of snacks, such as corn chips and potato chips5. Great brands, strong distribution, innovative capabilities6. popular with younger people, wide array of brands7. has a big share , popular, well know by costumers, hier celebrities for promotion8. company has good market share in Lucknow.9. Company has a Brand Equity among Consumers.

Weaknesses-

1- No provision for regular replacement of damage of bottles.2- Distribution is not proper so we can say not justified .3- not as popular with older crowd, not associated with key restaurants (i.e. coke /

McDonalds', while Pepsi / Pizza Hut)

Opportunities-1. water related products, non-soft drinks, energy drinks

OOppppoor r ttuunniittiieess AAnndd

TThhr r eeaattss ((EEXXTTEERRNNAALL))

●Social

●Demographic

●Economic

●Technological

●Political/Legal

●Competitive



47

2. Increase the coverage areas.3. Increase market share by improving service4. Increase the target consumer every year.5. Company can go for more Monopoly counters .

Threats-

1. Disributors are reducing in Lucknow city.2. constant competition with coke. Olympic branding from coke.3. other drink companies are increasing competition.4. Decline in market reputation due to ineffectiveness & declaring service.5. Aggressive marketing strategies of Coke.

Project Analysis

Project

“Analysis of Anti Pepsi Behavior of the Retail Outlets”

Description

The trainee was required to find out those outlets which are either not selling Pepsi orselling in very less amount. Region for the project was LUCKNOW region. This projectwas aimed at finding out the shops, which were not promoting Pepsi and sellingcompetitor brands. It was also aimed at knowing the reason for anti Pepsi behavior ofoutlets in the region, their requirements from company and willingness to sell Pepsibrands.

Purpose

Main purpose for this project was to make management aware of the total no. Of outletsin their region which were not selling Pepsi. It was also to plan their new course of action



48

keeping in mind the current market position of Pepsi as well as of Coke. This wasviewing the market share of Pepsi in comparison of Coke. This report gives informationto management about the outlets uncovered by Pepsi and their requirements to thecompany.

The marketing of its brand is excellent and is very successful to reach its brand inLUCKNOW. Overall the market of PepsiCo brand is good in comparison with Coke.There are very few outlets which are not selling Pepsi brands.

DETAILS OF THE SURVEY

The trainee was required to visit all the outlets in the specified area of hisdistributor, which was told to us by the CE concerned. We were required to be given theroute map of the specified area. The area was to thoroughly survey without leaving any

of the outlets.

Initially the survey was to start with the route vehicle of the distributor of that area.Two days had to be devoted with the route vehicle and noting down the name of theoutlets and other particulars where ever their route vehicle visited the outlets. It was toget familiarized with the area. The next couple of days had to be surveyed individually inthe same area trying to find out those outlets in that area which was not attended by theroute vehicle. This was how the whole survey was to be conducted.

The main aim of this survey was to find out those outlets which are either new orremain unnoticed/unattended by the route vehicle or where the Pepsi products were not

reaching.

For Pepsi these outlets is going to be the main focus of the survey. It was to knowthe exact strength of outlets of the area which were not selling Pepsi or selling very less.The trainee was required to collect the following information from each outlet hesurveyed.

Name of the outlets Address of the outlets Status of the outlet Cooling Equipment Sale of the outlet Brands on sale Requirement of outlet Willingness to sale pepsi. Reason for anti Pepsi

Name of the outlets:

The trainee was to note down the name of the outlet visited

Address of the outlet:



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Complete address of the outlets was to be noted by the trainee

Sale of the outlet

Sale of the outlet was to be noted on per day basis.

Brands on sale

Check out the brands available at the outlet.

Requirement of outlets

Ask what the shopkeeper wants from the Company.

Willingness to sale Pepsi

To know if shopkeeper want to sell Pepsi or not.

Reason for anti Pepsi

To know why shopkeeper is not selling/selling less the Pepsi brands.

Status of the outlet:

The status of the outlet was to be enquired of from the outlet owner and also by

observation. Status here meant the nature of the outlet.

This was to know weather the outlet sold only Pepsi products or only Cokeproducts or either both of these. It will help to know the nature of market in that area.



50

COMPARATIVE ANALYSIS AND PEPSI STOCK SHARE

QUESTION-1 which company’s stock do you have?

Pepsi 14

Coke 70

Both 14

Total retailer 70



51

INTERPRETATION:-

According to my study, 14 retailers have Pepsi stock, 70 have Coke stock and 14 haveboth.

QUESTION- 2 Which company’s VISI you have?

PEPSI 5

COKE 69

BOTH 5

TOTAL 70

14

70

14

0

10

20

30

40

50

60

70

Pepsi Coke Both

STOCK CHART

69

50

60

70

Visi chart



52

INTERPRETATION :-

According to my study of anti Pepsi outlets, 69 retailers have Coke VISI, 5 havePepsi visi and 5 have both Pepsi and coke visi.

QUESTION-3 Do you need Pepsi VISI?

YES 50

NO 20

T0TAL 70

NO 20

Pepsi visi requirement

YES

NO



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INTERPRETATION:-

According to my study, 50 retailers need Pepsi VISI.

QUESTION-4 Do you want to sell Pepsi?

YES 15

NO 55

TOTAL 70

15; 21%

Want to sell Pepsi

yes



54

INTERPRETATION:-

According to my study, 15 retailers says yes and 55 anti Pepsi retailers don’twant to sell Pepsi.

QUESTION- 5 Did you sell Pepsi before?

YES 58

NO 12

TOTAL 70

40

50

60

sold Pepsi before



55

INTERPRETATION:-

According to my study, 58 retailers have sold Pepsi earlier and now converted intocoke and 12 have never sold Pepsi.

QUESTION- 6 Is Pepsi providing right service or not?

YES 22

NO 48

TOTAL 70

22, 31%

SERVICE CHART

yes



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INTERPRETATION:-

According to my study 22 retailers said yes and 48 said no.

QUESTION- 7 What is the daily sale of your outlet?

Average 48

Good 16

Very good 06

Average=1-3 pt.; Good=3-5 pt.; Very good=more than 5 pt. daily in season.

6, 9%

sale of the outlet



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INTERPRETATION:- According to my study, 48 retailershave average sale, 16 have good sale and 06retailors have very good sale of soft drink.

QUESTION- 8 What is the reason of being anti Pepsi?

Visi not provided 25

Tie up with Coke/ coke approached first 17

Pepsi service not suits 16

Schemes are not as good as Coke’s 12

TOTAL 70



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INTERPRETATION:- According to my study, 25 retailers don’t sell Pepsi due to absence of Pepsi visi,

17 retailers due to coke tie ups and first approach, 16 due to bad service and 12 due tonot so good schemes.

FINDINGS:-

Shop owners have not been properly communicated about the Pepsi terms &

conditions of providing cooling equipment. They asked us as how they could get coolingequipment from the company.

Distributor is not very active regarding it.

SUGGESTIONS:

Pepsi can enhance its program of providing cooling equipment to more no. Ofoutlet owner which will compel them to keep only the Pepsi Products in thesecoolers/freezers.

IMPACT

25, 36%

17, 24%

16, 23%

12, 17%

Visi not provided

ie up with Coke/ coke

approached first

Pepsi service not suits

Schemes are not as good

as Coke’s



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It will increase the popularity &brand image of Pepsi in the eyes of outlet owners, whichis equally important for increase sale.

It will help the shopkeepers in providing chilled Pepsi products to the ultimate customersall the time by increasing their capacity of chilling.

STATUS

Status tells us the exact nature of outlets. It tells weather the outlets have only PEPSIproducts or only coke products or a mix of both. By studying this one can identify thoseshops, which has the potential and capacity of becoming the exclusive Pepsi outlet. Thiswill help in two ways:

1. It will increase the sale and market strength of Pepsi.

2. It will simultaneously sustain the sale of its competitor products.

The Anti Pepsi Outlets surveyed in LUCKNOW = 70

Exclusive PEPSI outlets = 0

Exclusive COKE outlets = 56

Outlets having both types of soft drinks = 14

0

56

14

0

10

20

30

40

50

60

Pepsi Coke Both

Status of outlet



60

Hence among 70 anti Pepsi outlets, 14 keep both Coke and Pepsi but Pepsi in very lessamount.

Suggestion

If proper attention is given then many of the shops in these areas have thecapacity & will to become the exclusive Pepsi outlets. In my View those shops whichhave a good regular sale of 5 to 10 cases per day should be targeted to convert them inexclusive outlets.

Over All Findings of the Survey

Survey of Anti Pepsi outlets shows that there are considerable no. of outlets which arenot selling Pepsi.

There are various reasons of anti Pepsi behavior of retailers as:- Large no. of retailers want visi coolers. Company does not provide schemes properly. Company does not provide discount properly. Some retailers want large size of Pepsi VISI. Some retailers are not satisfied with service of Pepsi so they are selling coke. All brands of Pepsi are not available so retailers suffers with shortage of stock. The no. of Pepsi is high in comparison of coke but some retailers prefer to sale coke

because of shortage of Pepsi and poor distribution channel. Retailers need display & schemes so that they can increase the sale of Pepsi. Retailers need the sign boards to attract customers. The distribution is not so proper or we can say not satisfactory. Many retailers want to tie up with Pepsi but company don’t approach them at right time. In some area Pepsi enjoying monopoly and somewhere coke. Retailers complain about lower margin on cold drinks due to rising electricity bills and

other expenses that are incurred. Route agents and salesman do not cover their routes properly. Retailers complaints about shortages during summer season and complained that route

agents and salesman do not visit their outlets during the summer season.

Some Outlets owners are very angry with the companies performance Our product start off late as result other brand reach the retailers &capture the markets.

Suggestion Regarding Improvement



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CE needs to personally contact with retailers who help in knowing the activities of thedistributors as well as help in Promoting the business.

It should focus its attention to the untapped market where it can considerably increaseits market share.

Distributors should from time to time take the pain of finding out the requirement of

retailers and the problem they are facing. The process of visi installation should be made easy. There should attention be paid to the repairing of visi out of order. Pepsi should work hard more to increase its market share in some areas like Cantt.

Road, Hazrat Ganj etc. Advertisement and publicity in the untapped market by way of signage, racks, paintings,

banners, hoarding etc. should be expanded. Margin to retailers should be taken care off and may be possible ought to be increased

without increasing the overall price. Distributors should check the working of route agents or salesman on regular basis. Shortages of the product during the summer season if possible should be reduced. It

communicates bad message among the retailers as well as the consumers. Signages & merchandise should be installed against the sale performance of the outlets

as well as the need of the market. Survey by the top officials should be made in the un tapped areas to access the real

situation and should be done as a surprise visit instead of planned visit.

LIMITATIONS OF STUDY

It is well know fact that constraint and limitations are bound to be present in anystudy do this also has some limitation as:-

1- The survey has been conducted only in few areas of Lucknow due to limited time.

2- It is very difficult to make people understand the significance of conducting survey.3- Lack of retailer’s interest to answer the questions is also an important limitation. 4- Lack of knowledge of area has affected the research.5- the information given by the client may be false and biased.

CONCLUSON



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The summer training project was focused on “Analysis of Anti Pepsi Behavior of

the Retail Outlets”

Pepsi is superior brand than coca-cola but from some time its market share hascome down due to various reasons. In India the company is running with very fastspeed. The popularity of Pepsi is better than coke. It has bright future.

It has democratic and communicative style of functioning.

Conclusion has been drawn:-

1- proper approach to the retailers at the time of tie ups is required.

2-The retailer’s satisfaction is low.

4- Company does not provide schemes properly.

5- No provision for regular replacement of damage of bottles.

6- Many complains of retailers does not listen by the company.

7- Many retailers want monopoly but company does not provide.

QUESTIONNAIRE FOR RETAILERS

Name of outlet: Name of the owner:

Address: Phone:

QUESTION-1 which company’s stock do you have?

a) Pepsi b) Coke c) Both

QUESTION- 2 Which company’s VISI you have?

a) Pepsi b) Coke c) Both

QUESTION-3 Do you need Pepsi VISI?a) Yes b) No



QUESTION-4 Do you want to sell Pepsi?

a) Yes b) No

QUESTION- 5 Did you sell Pepsi before?

a) Yes b) No

QUESTION- 6 Is Pepsi providing right service or not?

a) Yes b) No

QUESTION- 7 What is the daily sale of your outlet?

a) Average b) Good c) Very good

QUESTION- 8 What is the reason of being anti Pepsi?

a) Visi not provided b) Tie up with Coke/ coke approached first

c) Pepsi services not suits d) Schemes are not as good as Coke’s

BIBLOGRAPHY

Books:Marketing Management – ―Philip Kotler‖ Research Methodology – ―C.R. Kothari‖

Web Sites

www.google.com

www.pepsico.com

www.coca-cola.com

www.ask.com

http://www.google.com/


http://www.pepsico.com/


http://www.coca-cola.com/


http://www.ask.com/

http://www.ask.com/

http://www.ask.com/




172673780 pepsi project report

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