A RESEARCH PROJECTA RESEARCH PROJECT REPORT ON REPORT ON

BRAND POSITIONING OF PEPSI CO. IN

BHUBANESWAR

SUBMITTED BY

SUBRAT KUMAR BEHERA

REG. NO: - 08/OR/KBS/PGDM/FT/023

(2008-2010)

Under The Guidance Of

Mr. ANUJA ROY (MARKETING)

KOUSTUV BUSINESS SCHOOL, BHUBANESWAR

SUBMITED TO

TRIPTY DRINKS PRIVATE LIMITED.

Jagatpur, Cuttack.

DECLARATION

I, SUBRAT KUMAR BEHERA hereby declare that the project report written and

submitted to KOUSTUV BUSINESS SCHOOL, BHUBANESWAR by me is my own and

its equal copy has not been reproduced to any other institution/university or published

anywhere else. I understand that such reproducing is liable for punishment in any way

the university deem fit.

Place: BHUBANESWAR SUBRAT KUMAR

BEHERA

Date:-

ACKNOWLEDGEMENT

I would like to express my sincere gratitude to the following people without whose help, support

and encouragement; the successful completion of project would not have been possible. I want to

thank Mr. Anuja Roy my faculty guide, for helping me and clarifying my doubts as and when

they arose.

I am highly indebted to all the Dealers and Consumers who were a part of my survey,

helped in my endeavor and spurred me to achieve something worthwhile and enduring. The

success of this project is because of the cooperation of all. I take no credit for this achievement

but take the responsibility of any mistakes and inaccuracies. I thank GOD, for being so kind to

me and blessing me with you all.

Subrat Kumar Behera

(PGDM 2008-2010)

KOUSTUV BUSINESS SCHOOL

(BHUBANESWAR)

TABLE OF CONTENTS

CHAPTER –I

Preface

Key area

Executive summary

Significance and need of the Study

Objective

Methodology

CHAPTER--II

Industry profile

Pepsico in India subcontinent

Product profile

CHAPTER—III

Market activity

Distribution Channel

Data interpretation

CHAPTER—IV

SWOT Analysis

Findings

Recommends & suggestions

Conclusion

CHAPTER--V

Bibliography

Questionnaire

CHAPTER –I

PREFACE

KEY AREA

EXECUTIVE SUMMARY

SIGNIFICANCE AND NEED OF THE STUDY

OBJECTIVE

METHODOLOGY

PREFACE

Marketing is matching customer needs with the offering of the Company or in simple

words it is “meeting needs profitably”. There are different factors which influence the sale of

goods. A number of variables come into play when we consider the sale of C.S.D.(Carbonated

Soft Drink ) 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.

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

Distribution is the channel that bridges the gap between an organization and the end

user/customer. This bridge has to have a strong foundation and has to be repaired from time to

time. Those companies that pay too little attention to their distribution channels suffer damaging

results.

KEY AREA

The key area of my research report was “The study of different selling outlets of

PEPSI. “ 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.

1) AREA WISE: - The area of my Research report was “PEPSI CO.” and according to the

company the whole training area was divided into three parts….

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.

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.

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

interior areas of the town.

CHAR ACTER 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.

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

stationary shop, medical shop and such type of other shops.

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

selling of foods and related things used in the home.

EATERY: - It includes restaurants, fast food joints etc

EXECUTIVE SUMMARY

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

made by executing the research in Pepsi co. 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

help 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 the sample size of 70 was taken for the dealers and

the target area was Pepsi co. 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.

Questionnaire contains both open ended questions and close ended questions, on the basis

of the feedback the analysis was done with the help of the clear graphical representation by using

pie charts, and other graphs. The next step was the most important step for analysis at the actual

findings of the project and recommend to the company what can be incorporated for further

improvement.

SIGNIFICANCE AND THE NEED OF THE STUDY

Market research is concerned with the authentic and objective collection, analysis and evaluation

of information about specific and practical aspects of marketing problems in order to help the

management in making effective decisions. Market research is not an end in itself but it is a

means to an end.

My study on this project will help the company to know its strengths and weaknesses with

respect to the CSD market and to make strategic future decision to improve its market awareness

and penetration and thus finally enhance its sales.

Primarily this study will enable the company to evaluate its position among the

competitors in respect to all the important factors related.

Secondarily this study will enable the company to develop a fruitful correspondence with

the leads generated during the tenure of the study conducted.

OBJECTIVE

To study the dealers and retailers sales trend, of CSD industry and their products. To

make comparative analysis between Pepsi and Coke..

To determine the visibility of the Pepsi on the dealer outlets.

To determine the preference levels of Pepsi in comparison to the Coke.

To find out the satisfaction level of Pepsi in company.

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

To find out the dealers’ perception about the Pepsi product.

To find out the various factors influencing purchase of the Pepsi or Coke.

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

METHODOLOGY

Marketing research is the backbone of marketing. The main objective of my study was to

get information from the dealer regarding the sales of the CSD and non CSD products of Pepsi,

and to look at the other feasible channel for the sales of those products.

Meaning of Research: Research in common parlance refers to a search of knowledge. One can

also define research as a scientific research for pertinent knowledge or information on a specific

topic. This is a systematic and objective identification, collection of data, analysis, dissemination

and use of information for the purpose of assisting management in decision making related

identification and solution of problem in the market.

Method of study

I have divided my all study into three phases which are

1. Rout visit

2. Outlet survey

3. Product survey

I have selected 70 outlet of simple and make comparative study between Pepsi and Coca Cola. There are several method for data collection, I have adopted one of them i.e. Sample Size. Through questionnaire I have collected data for study. I have collect the data from retail outlet and take personal interview to distributor.

Research instrument

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

Number of total outlets:

Total number of outlets – 120

I have taken the sample--70

Outlet type Outlet numbers

CONVINIENCE 42

GROCERY 10

EATERY 18

Commencement of Fieldwork:-

The fieldwork included the process of getting the questionnaires filled up and also getting all the

relevant information regarding the visibility of PEPSI for future business decisions.

My fieldwork included extensive coverage of the following areas:-

MARKET BUILDING

KHARBEL NAGAR

Unit-111

My data collection process included in-depth interviews with the dealers and consumers getting

as much as relevant information as could be.

CHAPTER—II

Industry profile

PepsiCo in India

Product profile

INDUSTRY PROFILE

There is a very huge market size of the soft drink industries and as per the market size the

numbers of competitors are also very huge. In the present scenario there are many soft drink

industries in India. Many of them work at the state level and they distribute their product in those

areas only. These types of players are known as local players. Apart from these industries there

are few more industries which works on the national level or global level and these industries are

known as a national companies and multinational companies.

There are following national or multinational companies:-

1. Coca-Cola India Ltd

2. Dabur Foods Ltd

3. Parle Bisleri Pvt Ltd

4. PepsiCo India Holdings Pvt Ltd

Pepsi Cola Company was launched in 1902 the back room of pharmacy and applied to U.S

patent office for trademark. The business began to grow. On 16 th June 1903 “Pepsi Cola” was

officially registered with U.S. patent office. That year Caleb Brand Ham sold 7.968 gallons of

syrups, later on he began awarding franchise to bottle Pepsi to independent investors, whose

number grew from just two in 1905 in the cities of Charlotte and Durham North Carolina, to 15

following year and 40 by 1907.

Today PepsiCo is a well-established New York (U.S.A.) based American ($30.40 million)

multinational company. Presently Pepsi Cola is selling on an average of ninety millions bottles

per month. Pepsi made its first international move to Russia in 1959. With in thirty years Pepsi

emerged as the biggest competitors of Coca-Cola with its presence in 155 countries and working

under its CEO Steven S. Reinmund.

The philosophy of the Pepsi company is always

“If you think like No. 2, you will always No. 2”

The phenomenal sales growth of carbonated soft drinks Pepsi (about 30 to 35 per cent) and

Coca-Cola (40 per cent and above) in the months of April and May 2007 has proved that there is

a right price for everything. The remaining percentage of the market share is distributed among

the other national and local companies of soft drink industry.

In fact, since PepsiCo and Coca-Cola, the two US-based companies, set up operations in India,

never have they achieved the kind of sales growth with their carbonated soft drink (CSD) brands

as they have in the past two months.

The soft drink industry in India dates to the 1940’s when Parle introduced the first branded soft

drink called gold spot. Cola giant coca-cola was the first foreign soft drink company to setup its

shop in India in 1965. Coca-cola made a very good beginning and dominated the market right

from the word go. It faced no competition at that time. The marketing people did not even need

to publicize coca-cola.

Soft Drink: The market size for FY2001 was around 7000 mn bottles. The market

segmentation is based on the flavor volume. The cola products have nearly 51 to 52 percent soft

drink market. The non cola products have nearly 46% market of soft drink it is segmented into

Lemon, Orange & Mango flavor.

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption.

Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market

can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated

and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks

come under non carbonated category of the soft drink.

FINACIAL ANALYSIS

MARKET SHARE OF PEPSI

The marker share of Pepsi IndiaCo Ltd. Is 49% according to financial year 2009. India has a

developed capital market so all the Beverage company try to capture the market.

Total common share outstanding in September 2007 is 1,610 US Million Doller.

MARKET SHARE OF COKE

Coca Cola is the leader of the Beverage industry and market share of Coca Cola in Indian contest

is about 51%. Is was leader and trying to be leader in future

PEPSICO IN INDIAN

Gold Spot is considered as the first branded soft drink to be introduced by Parle in the early

forties. Coca-Cola was the first foreign soft drink to be introduced in Indian markets. The Coca -

Cola company entered India in early fifties when four bottling plant were set up at Bombay,

Kolkata, Delhi and Kanpur. Coca-Cola enjoyed a good beginning and dominant market. Parle

exports private limited, the major domestic player, later in 1970 introduced Limca a lemon soft

drink and Cola Peppino. ..

In July 1977, Coca-Cola left India following a public before over share holdings structure and

imports permits. As per FERA the company was to close their operation. Major shareholder

Parle extended its product line and introduced their Cola ‘Thumps up’. Pure Drinks introduced

their new products ‘Double seven’, ‘Thrill’, ‘Rush’ and ‘Sprint’.

After Coca-Cola, PepsiCo began to lay plans to enter this huge market and ninety years after its

introduction of what was to become one of the best favored soft drink globally in 1988, Pepsi

entered of India flanked with heavy resources and on riding the winds of change of newly

opened economy. This snacked food and beverage giant managed to stabilize itself in the

country, but only after overcoming obstacles from a bureaucratic government.

PepsiCo entered in Indian market in 1990, and then Pepsi started its bottling plant and corporate

colour blue as the advertisement. When Pepsi entered in Indian market Parle was holding 70%

market share in total soft drinks so Pepsi concentrated on availability of its brands and

continuous attachment by its advertisement.

In the year 1991, production of ‘Mirinda’ and ‘7’up’ started and the production of ‘Slice’,

‘Teem’ and Coca-Cola came back and launched its product in Agra with Parle Exports Private

and gradually took over the same company.

Pepsi entered into the cloudy Lemon category by launching its ‘Mirinda Lemon’ in1988.

In 1993 Pepsi had thirteen bottling plant units. In 1996 the number went up to twenty

seven .More plants are being set up and existing one will be expanded with a mission to change

taste of Indians who ,when came to refreshing drinks would go back to traditional ‘Nimbu Pani’,

’Jaljeera’. Pepsi was all set to give Indian consumer a taste of internationally famous soft drinks

brand.

PepsiCo setup operations in India for beverages and snacks food business under Managing

Director ‘Mr. Ramesh Vangal’ who was CEO till April, 1992 .At that time number of employees

working in PepsiCo India were only five. In 1994 number of employees increased up to 200 and

in 1997 PepsiCo India force has gone up to 2400.

Recently in May, 2001 production of ‘Aquafina’ was started by Pepsi. In the same year, another

flavor of Mirinda ‘Apple’ was also launched.

Pepsi is one of the major sponsors of cricket tournaments in India as well as other sports like

football and hockey. In Mohali, Punjab, it has set up a Cricket academy to develop young

budding cricketers.

Apart from the business Pepsi concentrated its mind in the social problem of India. (E.g.

unemployment, poverty etc.). Most of the bottling plants of Pepsi are located in the backward

areas thereby giving huge employment opportunities in these areas. Pepsi is a responsible

company undertaking many social projects in and around the bottling plants. These include

supports to the education centers, sponsoring inoculation camps, providing free health checkups,

sanitation drives etc.

PRODUCT PROFILE

CARBONATED SOFT DRINKS:-

The Joy of Pepsi.

COLA PEPSI

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

citric acid and natural flavors

DIET PEPSI 0 carbs. 0 calorie. It’s the diet coll.

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

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

ORANGE:

MIRINDA ORANGE Savor Your Mirinda.

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

MOUNTAIN DEW Do The Dew

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

CLEAR LEMON Aandaj sabse nirala

7up

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

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

FRUIT JUICE:-

SLICE

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.

PACKAGED DRINKING WATER

Pure Water Perfect Test

AQUAFINA

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

PRODUCTION PROCESS

WATER TREATMENT PLANT:-

Water in the Company BL is coming from the Sitarampur dam. It is stored in a reservoir. Before

ensuring production, this raw water is being treated by coagulation process. Main chemicals used

are ferrous sulphate (FeSO4), calcium hydroxide (CaOH) and chlorine (Cl). All the

impurities get settled at the base and remove the turbidity and than used in further processing.

BOTTLED WASHING PLANT:-

Used bottles returning from the market are stealthy. It is completely an auto process which takes

place within a machine called washer machine. The machine has three compartments. Bottles are

treated with 4% caustic soda in the first compartment at a temperature of 100-150 F again 2%

castic soda at 120 F and lastly with soft water. Bottles are then sent through the inspection

center, where these are watched against strong light

SYRUP ROOM:-

Syrup room is situated in the first floor. Here syrup is prepared from filtered water, sugar and the

concentrate. The room is well equipped with several tanks and filter press. First the syrup is

concentrated and than it heated at 85C.The solution is saturated and passed through a para flow

cooler, syrup is cooled down to 20-25 C.. Syrup comes to the traumatic machine. Here syrup is

mixed with carbonated water under pressure in definite proportion. Carbonated syrup by this

time fills the filter machine. From this machine syrup is poured into the bottles in calculated

amount. The exact rate of filling is 620 bottles per minute. Meanwhile crow machine helps in

closing the bottle mouth with caps which makes them completely air tight.

CHAPTER—III

Market activity

Distribution Channel

Observation and Analysis

MARKETING ACTIVITIES

PRODUCT

PRICE

PLACE

PROMOTIOOOOOON

INTRODUCTION

Marketing needs a framework that begins and ends with the customer. There is an

intermediate step between the deployment of marketing tools and the achievement of marketing

objectives. A marketing network consists of the company and its supporting stakeholders

(customers, suppliers, distributors, retailers, ad agencies, and others). A set of marketing tools

the firm uses to pursue its marketing objectives are called marketing mix. These tools can be

classified into four groups which are called the four Ps of marketing.

\

TARGET CONSUMERS

However some academicians feel that the four Ps of marketing have become redundant and

needs to be replaced by the four As or the four Cs of market

Soft drink is a FMCG product which has a wide and scattered market.

Thus it is divided into sub-parts to effectively meet the customer needs.

The entire market in this case is divided into three parts viz.:-

ROUTE MARKET

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

shopping, eating out in restraints, going to and from work, in amusement centers etc. In simpler

words this market is what we call the bazaar.

HOME MARKET

Outlets coming under this market cater to the customers who buy soft drinks predominantly for

home consumption either by glass bottles or pet bottles. The shops targeted under this category

are those which are located inside residential complex.

AT WORK MARKET

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

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

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.

Advertising

Sales Promotion

Direct Marketing

PersonalSelling

Public Relation

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

Company. 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 company 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

“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, Killer, Koushik and Jha

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

company 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 company 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 companyis 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.

ADVERTISING

“Advertising is any paid form of non-personal presentation and promotion of ideas, goods

or services by an identified sponsor.”

Marketing management Abraham Kawshik & jha.

Advertising is also known as a process of Telling & Selling.

Drawing the attention of consumers to any product, object, purpose or idea by using non

personal media of communication is termed as Advertising.

Through advertising the advertiser intends to spread his ideas about his

products/offerings among the customers and prospects.

Advertising can also defined as” the action of attracting public attention to a Product or

business," is one of many marketing tools you can use to draw in more customers with

greater frequency.

What Advertising Can Do For Your Business

Remind customers and prospects about the benefits of your product or service

Establish and maintain your distinct identity or "personality"

Enhance your reputation

Encourage existing customers to buy more of what you sell

Attract new customers and replace lost ones

Slowly build sales to boost your bottom line

1. Using Other Promotional Avenues

The theme of your advertising reflects your special identity or personality, and the particular

benefits of your product or service. For example, cosmetics ads almost always rely on a

glamorous theme. Many food products opt for healthy, all-American-family campaigns.

Automobile advertising frequently concentrates on how the car makes you feel about owning or

driving it rather than performance attributes.

Five “M” of advertising:

A very important part of advertising is to decide the medium of advertising and how much to

spend on each medium.

The different mediums used by Pepsi are:

TV

Hoarding

Newspaper/Magazines

Radio

Product of sales material(painting, glow signs, D. Board)

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

Shahrukh Khan – Pepsi

Sachin Tendulkar – Pepsi

MISSIONWhat are the advertising objectives?

MISSIONWhat are the advertising objectives?

MONEYHow much can

be spent?

MONEYHow much can

be spent?

MESSAGEWhat message should be sent?

MESSAGEWhat message should be sent?

MEDIAWhat media should be

used?

MEDIAWhat media should be

used?

MEASUREMENTHow should the

result be evaluated?

MEASUREMENTHow should the

result be evaluated?

Amitabh Bachchan – Pepsi

John Abraham – Diet Pepsi

Zayed Khan – Mirinda

Mallika Sherawat – 7up

OBJECTIVES OF THE ADVERTISING STRATEGY:-

Informative advertising means telling the market about new product, suggesting new uses for a

product, informing the market about the price change, explaining how the product works etc.

Persuasive advertising means building brand preference, encouraging customers to switch to

their product, changing customer’s perception.

Reminding consumer that the product may be needed in the near future, reminding consumers

where to buy it.

Thus advertising is a fascinating and important aspect of marketing. Advertising appeals to all

irrespective of age, caste, sex, borders etc. Words which can be associated with advertising are

fun, humor, warm, entertaining, persuasive, boring, and irritating. Advertising in simpler words

is communication and persuasive and leaves a mark in the mind of the consumer. Thus it is

natural to look to theories, concepts and research findings from psychology to understand and

mange the whole process.

DISTRIBUTION CHANNEL

All the marketing intermediaries (Sole selling agents, whole sellers, distributors, retailers etc.)

used by the producer for the purpose of making their products available to users are collectively

constituting the distribution channel.

Role of Distribution Channel

Provide Distribution Efficiency to manufacturers

Supply products in required Assortments

Provide Salesmanship

Help Merchandising the product

Help implement the Price Mechanism

Physical Distribution & Financing

Change Agent & generate Demand

Physical distribution of goods and products is a process of reaching out to the customer. After

the production process is over the main concern for a company is how to make that product

a[]vailable at the nearest shop of the target customer. For this the company needs to have an

effective distribution network which is cost effective, reaches to every nook and corner of the

target market and delivers the goods to the shops on time so that there is no scarcity. Thus a

company needs to have a very clear cut understanding of the geographies of that particular area

for an effective distribution channel. Basically there are two types of market viz. urban market

and rural market. Both the markets are very different from each other in terms of preference,

frequency of goods sold, price and quality. With respect to soft drinks it has been seen that the

frequency of sale is faster in the urban market. Thus the distribution network has to be more

prudent in the urban market. The area that was given to me comes under the urban market.The

company had divided his retail outlets on the basis of area wise and each of the division is having

mainly three types of outlets.

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.

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.

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

interior areas of the town.

FACTORS AFFECTING THE CHOICE OF DISTRIBUTION CHANNEL:-

There are a number of channels from which a company can choose from. The different channels

have already been mentioned in the introduction. The channel chosen should achieve the ideal

market exposure and should be able to meet the target customer’s needs and preferences. In

choosing the ideal channel, the company always has to struggle between what is ideal and what

is available. What is available need not be the ideal because there are a number of factors that

limits the choice.For this reason auto or matador is the best alternative for distributor but it can

carry fewer loads. An ideal channel should also be the best cost channel and keeping the entire

shortcoming in view a company should choose the best cost channel as its ideal channel. But it is

also a little tricky as this can lead to customer dissatisfaction and therefore sometimes a

relatively high cost channel can prove more profitable.

Various factors which affect the choice of the distribution channel are:

OUTSKIRTS

OUTER CIRCLE

INNER CIRCLE

Factors relating to product characteristics

Purchase frequency

Selling price per unit

Standardized product

Market factors and consumer factors

Consumer of industrial products

Number of purchasers

Geographical distribution of consumers

Size of the order

Company factor

Financial resources

Size of the company

Product mix

Attitude of the company executives

Marketing policies

Environmental factors

Economical considerations

Legal restrictions

Social and ethical considerations

Middle man consideration

Service provided by the middleman

Attitude of the middleman

Availability of the middleman

Sales volume potential

Cost of channel usage

Thus the above factors influence the decision regarding the distribution channel. It is therefore

right to say that a company is not always free to enjoy complete freedom in selecting the

distribution channel.

FACTORYFACTORY

INSTITUTIONAL OPERATIONINSTITUTIONAL OPERATIONHML (FACTORY DEPOT) DIRECTOR OPERATION

HML (FACTORY DEPOT) DIRECTOR OPERATION

DISTRIBUTORS DISTRIBUTORS

DEALERSDEALERS

MARINSMARINSRAILWAYSRAILWAYSCSDCSD

DISTRIBUTION CHANNEL

3- LEVEL DISTRIBUTION CHANNEL 2- LEVEL DISTRIBUTION CHANNEL

DATA INTERPRETATION

Market survey is one of the most widely used marketing research techniques. Its purpose is

collection of specific data concerning to the market that cannot come from the company’s

internal records or from external published source of data. The only way to get accurate data

regarding the target market is by physically moving around in that area along with the Pepsi

vehicle. There are various types of surveys out of which the one that I used was the census

survey. The report on marketing activities of company is based on a survey.

DEALER SURVEY

Dealer survey or retailer survey is one of the most accurate methods to know about the market

share of a company and it is especially true for soft drinks companies. Soft drink market is

typically characterized by changes in the stock position everyday.

In order to have a good knowledge about the market and the route it was important for me to

move along with the Pepsi vehicle. This helped me to know about:

1. Number of dealers in the market

2. Location of the dealers

3. Type of dealers

4. Market share

Learning in the classrooms and learning practically are two different things. So for the first 15

days I moved along with the Pepsi vehicle interacting with the retailers and trying to build up a

rapport with them. From this I also came to know how to deal with different types of retailers

and how to convince them. 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 will help the company to improve its services and as such increase retailer

satisfaction which in turn results in better sales and revenue generation. Thus appropriate

marketing strategies can be worked out based upon the findings.

While conducting the survey of the dealers a format was provided to me by the company which I

personally filled up by interviewing all the retailers in the company area.

NUMBER OF OUTLETS:

In the Company area there are 120 outlets selling soft drinks out of which around 15 are Pepsi

exclusive outlets and 8 are coca-cola exclusive outlets. Rests are selling both the brands. Also

there are three types of outlets in the area which are:

Number of total outlets:

Total number of outlets – 120

Outlet type Outlet numbers

CONVININCE 72

GROCERY 18

EATERY 30

Convenience outlet which includes general stores, beetle shops, medical stores and other

types of shops

Grocery outlet which includes shops selling grocery

Eatery which includes restaurants, fast food joints etc

MARKET SHARE OF COMPANY

Market Share of Product

Market Share of Filled stock

SL No Product Est. Mark. Share

1 Pepsi 48.00%

2 Coca Cola 51.00%

Interpretation

About 70% of the dealers are well aware about the Pepsi product this indicates Good market

share.

Market Share of Product

Market Share of Chilled stock

Market Share of Filled stock Est. Mark. Share

1coca cola

2 Pepsi

SL No Product Est. Mark. Share

1 Pepsi 41.60%

2 Coca Cola 52.40%

Interpretation

About 70% of the dealers are well aware about the Pepsi product this indicates Good market

share.

Market share of glow signs board:

Market Share of Glow Sign

SL No Product Est Mark. Share

1 Pepsi 75%

Market Share of Chilled stock Est. Mark. Share

1 Coca cola

2 Pepsi

2 Coca Cola 25%

Glow signs are the boards on the top of a shop with neon lights in the back ground with works as

a sign board for the shop. It is an effective marketing strategy.

Market Share of Glow Sign Est Mark. Share

1 Pepsi

2 Coca Cola

Interpretation

According to the research pepsi has a very good growth rate as it is 48% till April 2009.

Market share of VISI cooler:

Market Share of VISI Cooler

SL No Company Est.Mark. Share

1 Pepsi 46.50%

2 Coca Cola 54.50%

This is one of the most important supports for the dealers which help them to keep the product

chilled and fresh.

Interpretation

Cock has got a large market share (i.e. 54.5%) followed by the pepsi with market share of 46.5%.

How much of the business you do, from Pepsi?

Business from different Outlet

SL No Type of Outlet Est. Mark. Share

1 Convenience 60%

2 Grocery 15%

3 Eatery 25%

Market Share of VISI Cooler Est. Mark. Share

1 coca cola

2 Pepsi

These three kinds of market shows the total market area which is divided on the basis of the

character (type of work done by the retailer).

Business from different Outlet Est. Mark. Share

1 Conveience

2 Grocery

3 Eatery

Interpretation

Convenience shop has a highest percentage of business from Pepsi and followed by Eatery shop

and Grocery shop.

How frequently do you buy PEPSI?

Frequency of buying the Pepsi

SL No Time Period Percentage

1 Daily 20%

2 Alternative 70%

3 Weekly 10%

This is related to the frequency of Pepsi vehicle that a dealer wants, according to the need and

demand of the product in that particular area.

Frequence of buying the Pepsi Percentage

1 Daily

2 Alternative

3 Weekly

Interpretation

Most of the dealers want a frequency of Pepsi Vehicle on the basis of alternative days.

Which is your favorite C.S.D.?

Favorite C.S.D. of the Consumer

SL No Product Percentage

1 Pepsi 6%

2 7up 15%

3 M. Dew 11%

4 Slice 12%

5 Mirinda 10%

6 Coca Cola 5%

7 Thumps up 8%

8 Sprite 11%

9 Maaza 7%

10 Fenta 9%

11 Limca 6%

With the help of this question, I tried to find out the sale of a particular product at each counter.

Favourite C.S.D. of the Consumer Percentage

1 Pepsi

2 7up

3 M. Dew

4 Slice

5 Mirinda

6 Coca Cola

7 Thumps up

8 Sprite

9 Maaza

10 Fenta

11 Limca

Interpretation:-

Among the entire CSD product Mirinda,7up,slice occupy a first place in the choice of dealers

and followed by Coca-Cola, Sprite etc.

How many of each of the following brands of C.S.D. do you have?

Favorite C.S.D. of Pepsi Product

SL No Product Percentage

1 Pepsi 12%

2 7up 30%

3 M. Dew 18%

4 Slice 24%

5 Mirinda 16%

Favourite C.S.D. of Pepsi Product Percentage

1 Pepsi

2 7up

3 M. Dew

4 Slice

5 Mirinda

Interpretation:-

Among entire brand of Pepsi Cola, 7up is having a highest demand and followed by Slice,

Mountain Dew, Mirinda and Pepsi

ANALYSIS OF THE RETAILERS’ QUESTIONNAIRE:-

Questionnaire for “Sales Trend of Beverage Industry”:-

Q.1 How much of the business you do, from Pepsi?

With the help of this question I tried to find out that how much a businessman do a business from

the product of Pepsi, and I found that convenience shops (i.e. general stores, beetel shop,

stationary shop etc.) are having a great role in sale of Pepsi, in these shops, about 60% of

business comes from the sale of soft drink. This percentage of contribution or business of each

dealer depends upon the type of shop and the location of shop. As we have talked, that in this

survey we are having mainly three types of shops i.e. convenience, grocery and eatery. In these

categories, a convenience shops are having a very high percentages of business which they do

from Pepsi, there is very minimal effect of location on these types of shops. Like wise an eatery

shops are having a second position in this question and they do about 25% of business but their

business is effected from the location and similar in the grocery shops, having a least business

i.e. 15% and also affected from the location.

Q.2 Which is your favorite C.S.D.?

Through this question I tried to ask about the sale of an individual product of Pepsi and Coca-

Cola. The figure that I found is as:- among of all C.S.D. product 7UP is favorite C.S.D. among of

all the dealers with 15% of preference, Slice having the percentages of preference is 12%,

Mountain Dew and Sprite are having the percentage of preference are 11% these two C.S.D. is

followed by the another C.S.D. After that Mirinda and Fanta are having the preference of the

Consumers respectively 10% and 9%. Thumps up and Maaza are having the percentage of

preference are respectively 8% and 7% and Pepsi and Limca both having 6% preference and at

the end point Coca Cola having 5% of consumer preference.

Q.3 How many of each of the following brands of C.S.D. do you own?

This question focused on the store capacity and product availability at each counter, in this

question I tried to concentrated on only Pepsi products, (i.e. Pepsi, 7up, Mirinda(o), Mountain

Dew and Slice). I prepared a structure in a percentages form with the help of the response given

by the dealers. On the basis of given response 7up is having 40% of the storage, which is

followed by a product from an Cola segment, Pepsi with a 30%. After this orange segment, a

Mirinda is having a third position with 15% of storage preference by the dealers, and finally

Mountain Dew is having 8% of preference and lastly a Slice with 7% of preference level of

dealers.

For coca-cola, a retailer out of every dealer preferred to keep 40% bottles of Sprite, 25% bottles

of Thums up, 15% bottles of Maaza, 11% bottles of Coco Cola, and 9% bottles of Limca and

Fanta. Thus Sprite is the most preferred flavor along with Thums up while others are not of much

significance.

Q.4 How satisfied are you, with the VISI Cooler of PEPSI?

With the help of this type of question I tried to know the opinion of the dealers about the

facilities provided by the company and in this sequence I took “visi cooler” as a first facility

provided by the company. I divided the whole opinion of the dealers in mainly five parts, which

starts with the satisfactory and end with the dissatisfactory of the dealers. In between these two

opinions (i.e. very satisfactory and very dissatisfactory) there are three more opinion, which are

quite satisfied, neither satisfied nor dissatisfied and quite dissatisfied.

After analyzing this question I found that 8% of dealers are highly satisfied with visi cooler, 20%

of dealers are very satisfied with the visi cooler of Pepsi, 12% are quite satisfied, 10% are neither

satisfied nor dissatisfied, 50% of dealers are Not satisfied and with the Visi Cooler of Pepsi.

Q.5 How satisfied are you with the SCHEMES of PEPSI?

This is another question which tell us about the opinion of the dealers for Schemes, which is

provided by the company to push the product and generate the sale of product in the market. So

after analyzing this question I found that 62% of dealers are very satisfied with the schemes,

27% are quite satisfied, 6% dealers are neither satisfied nor dissatisfied, 5% of dealers are quite

dissatisfied and I glad to find out that there is no one dealer which is fully or very dissatisfied

with the schemes facility of Pepsi.

Q. 6 How satisfied are you with the GLOW SIGN BOARD of PEPSI?

This question talk about the glow sign board, which are the boards on the top of a shop with neon

lights in the back ground with works as a sign board for the shop. After analyzing this question I

found that 20% of the dealers are very satisfied with the glow sign board, 12% are quite satisfied,

10% are neither satisfied nor dissatisfied, 50% are Not satisfied and finally 8% of dealers are

very dissatisfied with the glow sign board.

Q.7 How would you rate COKE compared to PEPSI on SCHEMES?

In this I tried to find out the opinion of the dealers about the schemes of Pepsi in compare of

Coke and I found that for 23% of dealers told that Coke has good scheme in this season. 77%

dealers told that Pepsi provide good scheme in this summer as for example scratch card system.

Q.8 How satisfied are you with the quality of Pepsi?

In this question I tried to focus on the quality of the product of Pepsi, and I analyze that dealers

are not satisfied with the quality and the taste of the product and there is very less no of bottle

which are faulted.

Q.9 Support material (holders, displays etc.)?

With the help of this question I tried to found out that how many a dealers are satisfied with the

support material, provided by the Pepsi. The opinion of dealers are divided into three main parts,

which are, provided no support material, provided low quality of support material and assistance

and provided high quality of support material and assistance to help his business.

After analyzing this question I found that there are only two types of dealer, one who gets

support materials and assistance and another who does not get any support materials and

assistance. There are only 30% dealers who get support materials and 60% dealers do not get any

type of assistance.

CHAPTER—IV

SWOT Analysis

Findings

Recommends & suggestions

SWOT ANALYSIS

STRENGTHS:-

PEPSI has an excellent brand name, awareness & high quality image.

PEPSI has effective and stronger service than its competitors like COKE who too have a

good name in soft drink market.

Quality products at a competitive price.

PEPSI has an effective distribution system i.e. dealers have good contacts with the

customer executive.

Continuous & strategic improvements in the promotional strategies.

Strong dealer network

PEPSI has got goodwill in the market with regard to the brand name.

PEPSI has highest Market share of 69% in C.S.D. sector.

Market share of PEPSI is consistently increasing.

WEAKNESSES: -

The cola flavors of Pepsi have not so good test as previous (as the customer perceives it).

PEPSI dose not have any provision for expiry and fusty goods.

Restricted range of products.

The frequency of vehicle in peak season is not sufficient.

OPPORTUNITIES:-

Consumers are showing increased interests in PEPSI products.

New develop schemes like “Scratch card system ” provides it an edge over its

competitors

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

Pepsi can explore its distribution network in interior area also.

THREATS:-

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

Grubby packaging and storage in compare of Coke.

Tough competition from Coke.

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

FINDINGS

1. As per I have visited to dealers outlets I found that in outlets visibility of Pepsi

is avarage

2. Preference level is more of Pepsi products as comparison to coke. In coke the demand

Thumps up is more as comparison to Pepsi cola flavor.

3. satisfaction level is also good.

4. The sales level of Pepsi is less than coke. According to data I have been collected the

market share of Pepsi is 49%

5. Dealers are happy with Pepsi products. They got the products by the company at the

time due to good distribution channel.

6. The factors which influence purchase of Pepsi or coke is promotional activities like

scheme of free bottles with pet, gifts given by the company etc.

7. The dealers want more promotional scheme, gifts and quality service.

RECOMMENDATION

FOR DISTRIBUTION CHANNEL:-

Company must increase the frequency of vehicle for the distribution channel.

Company must explore the interior areas and try to make new outlets over there.

Company must keep regular monitoring on the distributors and supply, retains the

availability and continuity.

Company must provide a gift or bonus to the salesman and distributors.

Company must distribute a gift and schemes through a proper channel.

FOR SALES TREND:-

Company must provide better services and try to attend the suggestion and complain by

the retailers.

Company must provide general information about product and price in the outskirts

areas.

Company is requiring, providing support materials and accessories to the retailers in both

urban and outskirt areas.

Company must provide a service for the expiry goods.

Company must improve its packaging and storing process.

Company must provide or make avail products according to the demand.

Company is requiring, keeping eyes on retailers and going through to their problems.

Company must encourage the high selling counters by providing incentives and other

extra benefits.

CONCLUSION

After analyzing the fact we came to the conclusion that PEPSI is growing day by day.

This conclusion is based on overall information collected from various distributors, retailers,

markets and consumers. They are having an edge over other soft drink producer in the market.

They are doing very good in the current scenario, but they need some object oriented and bit

dynamism in the strategy in the outskirt.

The company just needs to reform its rules, create more global awareness, change its

policies in favour of more opportunities & encourage its major players to invest in the

companies.

However, the company, if concentrates on the following factors will be able to face tough

challenges:

Technology

Quality

Brand competition

Price competition

Good balance between production and sales

Different preferences for products by different age groups

R & D capacity

Distribution Network

Pre-Sales services

After-sales services

Thus the company has an upcoming bright future in the future years. The training at PEPSI

taught me that classroom study is not an end but is a mean to achieve your goals. The stint at

PEPSI will go a long way in enhancing my life as a student. As life is full of learning and one

being student throughout it.

CHAPTER—V

Bibliography

Questionnaire

BIBLIOGRAPHY

Sites Visited

www.google.com

www.pepsico.com

www.domain-b.com

www.yhaoo.com

Books Referred

Marketing Management by Kotler, Killer, Koushik and Jha

Marketing Management by Piter Dacken

Marketing Strategy Magazine

Marketing management Magazine

C. R. Khothari

QUESTIONNAIRE

Dear sir/ madam,

I BALGOPAL SAHU, a student of Frist year M.B.A. of “Institute of

business and computer studies”, a Research project on the Topic “ Over all Market activity

of Pepsi ”. I would be grateful to you if you could spare sometime from your busy schedule

and fill up the questionnaire. I assure you that whatever information you provide shall be

kept confidential and will be used for academic purpose.

Name of outlet _______________________________________________

Address __________________________________________________

Q1. Monthly Sales (in Rs.)

(a) Less than 5000 (b) Between 5000 to 10,000

(c) 10,000 to 15,000 (c) Above 15000

Q2. Number of *c/s – carets sold per month of soft drinks.

(a) 0 to 50 carets (b) 50 to 100 carets

(c) 100 to 150 carets (d) 150 to 200 carets

Q3. Which Type of outlets?

(a) Convenience (b) Grocery

(c) Eatery

Q4. Do you know about all flavors pack (size) and respective wholesale price of Pepsi soft

drinks

(a) Yes (b) No

Q5. Which flavors of Pepsi is more demanded by consumer?

(a) Pepsi Cola (b) Mirinda (O)

(c) Mirinda (L) (d) 7Up

(e) Slice (f) Mountain Dew

Q6. Which company soft drink is most demandable?

(a) Pepsi (b) Coca –Cola

(c) Others

Q7. What is the position delivery of Pepsi products?

(a) Very goo (b) Good

(c) Bad (d) Worse

Q8.What is the frequency of buy Pepsi product?

(a) Daily (b) Alternative day

(c) Weekly (d) Fortnightly

Q9. Which factors effects the sales volume?

(a) Advisements (b) Scheme

(c) Presence (d) Taste

(e) Price (f) Others

Q10. Which type of VISI Cooler / Cooler you have?

(a) Pepsi (b) Coca Cola

(c) Both (d) Own

(e) Not having any

Q11. What is the position of maintenance work of refrigerator done by Pepsi Company?

(a) Highly satisfactory (b) Satisfactory

(c) Less satisfactory (d) Not satisfactory

Q12. Which Company provide you Singes ?

(a) Pepsi (b) Coca Cola

(c) Both (d) Not satisfied