Cool drinks

Download Cool drinks

Post on 09-May-2015




2 download

Embed Size (px)


<ul><li>1.UNDERSTANDING AND ANALYZING THE WORKING OF HUL SVS AS POTENTIAL FOR PEPSICOS LRB. Report By ASHISH CHADHA (Roll No. 8007) Work Carried out at PEPSICO INDIA HOLDINGS PVT. LIMITED, LUCKNOWSubmitted in partial fulfillment of the requirement ofSummer Internship Program Under the SupervisionOf Mr. Rahul SrivastavMarketing Development Coordinator, PepsiCo india Holdings Pvt. Ltd.VIth Floor,Raj Chambers, Hazratganj,LucknowSDM Institute for Management DevelopmentMysore, Karnataka, India i</li></ul><p>2. CERTIFICATEii 3. EXECUTIVE SUMMARYDISSERTATIONTITLE: UNDERSTANDING ANDANALYZING THE WORKING OF HUL SVS ASPOTENTIAL FOR PEPSICOS LRB.Supervisor:Mr.RahulSrivastavaNameofthestudent:AshishChadhaRollNo.8007This report Understanding and analyzing the working of HUL SVS aspotential for PepsiCos LRB aims at providing insights about the high profile kiranastores , how HUL categorized them and their business potential with respect ofstockingPepsiCosLRB.Pepsi has a strong presence in almost all cool corners, cafe parlours,restaurants, eating joints, prominent bakeries, etc. Therefore for developing newbusiness it was searching for options. Since, in a business environment most FMCGcompaniesareawareofhowtheirpeersarestrategizing,theSVSstoreconceptofHULwasstudied.CompanybelievedthatifwecananalyzethestrengthofthehighprofileSVS,theycanbeahugebusinessopportunity.My project dealt with Understanding and analyzing HULSVS, wherein Iidentified the four major distributors of HUL in the city, interviewed them trying togather what apart from monthly sales made them categorize an outlet as SVS. Thesedistributorswerealsoastoreformysamplegatheringi.e.thelistofallSVSoutletsinLucknowcity.Combiningallthesefourdistributors,ImadealistofSVSoutlets,whichwasthetotalsamplesizeoftheproject.After going through the field research for the same in Lucknow, a lot ofpointscameoutregardingHULanditssatisfactionlevels.Iwasevenabletoconvinceanumber of outlets to stock PepsiCos LRB and thus contributed to the companysbusiness,theofficialexecutionofwhichiscurrentlybeingcarriedout.The project, which was a blend of research and business development wasquitealearningandsatisfyingexperience.SignatureofStudent:SignatureoftheSupervisor:AshishChadhaMr.RahulSrivastava,MarketingDevelopmentCoordinator(MDC)PepsiCoIndiaHoldingsPvt.Ltd,Lucknow iii 4. ACKNOWLEDGEMENTIwishtoexpressmysincereregardsanddeepsenseofgratitudetomyprojectguide,Mr.RahulSrivastava,MarketingDevelopmentCoordinator,PepsiCoIndiaHoldingsPvt.Ltd. Lucknow, who has always been a great source of inspiration, for his guidance,constanthelpandencouragementthroughouttheinvestigationandpreparationoftheproject report. I am thankful to my faculty guide Prof. Sridhar Chari who helped tocompletemyprojectsuccessfully.I would like to express my gratefulness and sincere thanks to Mr. Vikas Tandon,Account Development Coodinator,PepsiCo,lucknow for his help and extended supportatvariousstagesofthework.Withouthishelpandvaluablesuggestionsmyprojectwouldnothavebeenasuccess.Last but not the least; I thank God Almighty, from whom flows all wisdom andknowledge.ASHISHCHADHA iv 5. LISTOFSYMBOLS/ABBREVIATIONS:SVS:SuperValueStoresw.r.t.:withreferencetoS.K.U.:StockKeepingUnitPVC:PolyVinylChlorineLRB:LiquidRefreshmentBeveragev 6. LISTOFCHARTS/DIAGRAMS:1 Photograph of Indra Nooyi 32. Marketing Mix73. Product-Price table for Pepsi products 94. Purchasing soft drinks 275. Soft drink purchased more276. Soft drink sold most 277. Ranks of non carbonated drinks 288.Service as the most important criteria299. Service satisfaction with companys salesman 2910. Interaction with salesman 3011. Frequency of salesmans visit 3112. Satisfaction with HULs quality 3113. Replacement of damaged stock3214. Visit of C.E./A.D.C3215. Providing enough accessories3316. Meeting with salesman creates a healthy environment3417. Product Availability at all times3418. Products in sufficient quantity 3529. Enrollment in companys plans3620. Solving problems in short times3721. Changing Faulty accessories immediately 3822. In total,service match with expectations3823. Satisfaction with companys schemes and products 3924. Rate HULs service out of 10 4025. SVS outlet details51vi 7. TABLEOFCONTENTSChNo.TitlePageNo.i)Certificateiiii) Executive summary iiiiii) Acknowledgementiviv)List of symbol/abbreviationsvv)List of chart/diagramsvivi) Table of contents vii1.IntroductionIndustry overview 1Company Profile3Social Initiatives4 Sales and Marketing5 Marketing mix 7SWOT analysis12Competition Profile14 SVS as a HUL concept 162.Project proposalObjectives of the study 17 Scope of the study18 Limitation of the study193.Problem DefinitionStatement of the Problem 20Source of error21vii 8. 4 Research MethodologyType of research design 22Information needed23Scaling techniques24Sampling25 Target population Sampling frame Sampling technique Sample sizeSurvey &amp; Observation method 265. Data analysisFinding and Observation 276. Recommendation 437. Conclusion 448. Annexures459. References 58viii 9. CHAPTER 1: INTRODUCTION INDUSTRY OVERVIEWThe soft drinks industry continued on its path to recovery from the low growth seen between2005 and 2006, with higher volume growth in 2008 than that seen in 2007. The maturesectors of bottled water, fruit/vegetable juice and carbonates saw a dynamic year, withcompanies refreshing their products brand image and packaging to attract new consumers.Emerging product categories, such as energy drinks and reconstituted 100% juice, saw highdouble-digit growth rates, as companies increased their products penetration in India. Off-trade volume growth was slightly higher than on-trade volume growth, as convenient on-the-go packaging, company sponsored chillers in kiranas and attractive supermarket displaysfuelled off-trade sales across the market.With the industry back on the upward growth curve, companies refreshed their brands byintroducing new and more premium packaging designs, pack sizes and communicationcampaigns. In 2008, bottled water was especially dynamic, with all the major national brandsfollowing the cue of Bisleris rebranding in late 2007. Carbonates and juice drinks were alsoreinvigorated with new pack sizes that targeted on-the-go consumption by young adults.With naturally healthy becoming a key focus for consumers and manufacturers,fruit/vegetable drinks companies focused their efforts on highlighting their products freshfruit content and health attributes. Companies put in motion plans to extend their productportfolios to emerging categories such as 100% juice, energy drinks and flavoured water.The multinationals Coca-Cola India and PepsiCo India Holdings saw their off-trade valueshares of soft drinks in India decline over the review period, as other national and regionalplayers updated their brand portfolios and increased the penetration of their brands in India.Bottled water players, such as Parle Bisleri and Dhariwal Industries, were particularlysuccessful in expanding their consumer base through a concerted effort to increase theirmanufacturing capacity and move to newer regions within India. Dabur India and Parle Agrobenefited from their first mover advantage in being present in high-growth emerging productcategories, such as 100% juice and other non-cola carbonates.With companies increasing their spend on below-the-line marketing activities, the ubiquitouskiranas were the beneficiaries of efforts such as branded glass door refrigerators, regionallanguage banners and displays, and the roll-out of on-the-go packaging for carbonates and1 10. juice drinks. Supermarkets, which are still something of a novelty in many small cities,continued to attract a combination of regular grocery shoppers and young impulse buyers.Bundling and discount promotions for fruit/vegetable juice and concentrates drove productsampling in supermarkets. Emerging categories, such as energy drinks and RTD tea,received a boost from impulse buyers in supermarkets, while attractive displays andimported products in upmarket shopping centres introduced consumers to new products,such as sports drinks and flavoured water.With rising consumer affluence and companies tailoring their product designs and marketingspecifically to target the young adult population group, the trend of robust double-digitannual volume growth is expected to continue over the forecast period. The foray of leadingnational players into emerging categories, such as energy drinks and 100% juice, will helpsustain high growth rates in the future. Competition from the unorganised sector is expectedto decline over the forecast period, as the national players make a concerted effort to educateconsumers about the health benefits of packaged drinks, and move into markets such as bulkbottled water, which are currently dominated by the unorganised sector. 2 11. INTRODUCTION OF PEPSICOProfileofPepsiInternationalPepsiissituatedatSomarsNewYorkinU.S.A,IndraKNooyiischairmanandCEOofPepsi.Calab bradham, a North Carolina pharmacist concocted Pepsicolain the year 1890 as a cure to Dyespsia (indignation). In 1903,businessstrategyworked&amp;in1909hehadaNewYorkadvertisingagency. PepsiCo Food &amp; Beverages International, a full fledge co.earnsmorethenhalfofitsglobalrevenuesfromsnackfoods&amp;fastfoods. PepsiCos major Business includes Pepsi foods, KFC,PizzaHut,tacobell&amp;Californiapizzaswhichisaworldleaderinrestaurantbusinessalso.PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjabgovernmentowned Punjab Agro Industrial Corporation (PAIC) and Voltas IndiaLimited. PepsiCo is a world leader in convenient foods and beverages, with 2006revenues of more than $35 billion and 168,000 employees. PepsiCo brands areavailableinnearly200countriesandterritoriesandgeneratesalesattheretaillevelofabout$92billion. PepsiCo Mission :"To be the worlds premier consumer productscompany focused on convenience foods and beverages. We seek to produce healthyfinancialrewardstoinvestorsasweprovideopportunitiesforgrowthandenrichmentto our employees, our business partners and the communities in which we operate.Andineverythingwedo,westriveforhonesty,fairnessandintegrity." 3 12. SOCIAL INITIATIVESPerformance with Purpose articulates PepsiCo Indias belief that its businesses areintrinsically connected to the communities and world that surrounds it. PerformancewithPurposemeansdeliveringsuperiorfinancialperformanceatthesametimeasweimprovetheworld.To deliver on this commitment, PepsiCo India will build on the incredibly strongfoundationofachievementandscaleupitsinitiativeswhilefocusingonthefollowing4criticalareasthathaveabusinesslinkandwherewebelievethatwecanhavethemostimpact.REPLENISHINGWATERPepsiCoIndiacontinuestoreplenishwaterandaimstoachievepositivewaterbalanceby2009,whichmeansitiscommittedtosavingandrechargingmorewaterthanitusesinitsbeverageplants. PARTNERSHIPWITHFARMERSPepsiCoIndiasAgripartnershipswithfarmershelpmorethan22,000farmersacrossthecountryearnmore. WASTETOWEALTHPepsiCoIndiacontinuestoconvertWastetoWealth,tomakecitiescleaner.Thisawardwinning initiative has established Zero Solid Waste centres that benefit more than2,00,000communitymembersthroughoutthecountryHEALTHYKIDSPepsiCo India will stay committed to the health and wellbeing of children. It willcontinue to provide children with a healthy and fun portfolio while simultaneouslytacklingthecaloriesoutsideoftheequationbyexpandingitsGetActiveprogrammefor kids, especially for school going children. PepsiCo will also launch and distributeproducts directly aimed at addressing nutritional deficiencies and will launch a pilotprogram that directly delivers against the United Nations Millennium DevelopmentGoaltoeradicateextremepovertyandhungerby2015.4 13. SALES AND MARKETING DEPARTMENTSales and marketing department controls all the activities relating to marketing andsales. All the order of supplying drinks are received by this department. It maintainsthe adequate supply to its agencies. Sales force has the direct link with customers. Itcollectsthemarketinginformationandtrytoacquaintwithhistohighermanagement.Thesalesforcescomprisesfollowingstaff. Managing Director General Manager (Marketing) Regional Manager Area Manager Territory Manager Senior Sales Executive Sales Executive Management TraineesSales and Marketing Manager control the entire sales forces. Sales supervisors perform thefollowing tasks: Sales supervisors find and cultivate new customers. Sales supervisors skillfully communicate information about the companys productand Services. Sales supervisors know the art of salesmanship approaching presenting answeringobjections and closing sales. Sales supervisors provide various services to the customers consulting of theirproblems rendering technical assistance, arranging financing and expending delivery.Sales supervisors carryout market research and intelligence work and fill in callreport.MERCHANDISING STRATEGIES ADOPTED BY PEPSI Creating awareness about the product. Differentness in profit of Pepsi Products and Coca Cola Discount in products5 14. Provide Gravity Rack, Air Hanger, PVC Rack, Combo Shot Provide Visi Cooler and OYC Cooler Provide Board ( Glow Signs, Dealer Board) Provide Shop Painting Convincing the retailer to stock Pepsi products. Display Scheme for Products Discount in Products Coupon Scheme Visi Cooler and OYC Cooler Scheme Rack Scheme Provide Free MT Yearly Target Achievement Gift Scheme Provide membership of PEPSI GOLD CLUB PROMRAM Auditing of Pepsi Gold Club Program 2008. Audit the only those retailer who have got Pepsi Gold Club membership. 1 Year Programme (February to June, July to October). Type of outlet (Eatery, Grocery, Convenience). Main outlet motivational scheme. Check the condition of Pepsi Monopoly outlet. Visi size compared with Coca Cola(Pepsi Visi &gt; Coca Visi) Check the purity of SKU of Pepsi Products. Check the Impurity (Exp. - Real Juice, Amul Products, Treat and Parle Product. 6 15. MARKETING MIX PRODUCTS:The group manufactures and markets Carbonated and Non-Carbonated Soft Drinks andMineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi, Pepsi MyCan, Pepsi Diet, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango,Slice Orange, and Aquafina, Tropicana, Tropicana Twister.Brands available in 200ml.1. Pepsi2. Mirinda Orange3. Mountain Dew4. 7up5. Tropicana Premium Gold 7 16. Brands available in 250ml.1. Slice2. Tropicana Twister3. Pepsi My Can4. 7 Up CanBrandsavailablein300ml. 1. Pepsi 2. Mirinda Orange 3. Mirinda Lemon 4. Mountain Dew 5. 7up 6. SodaBrandAvailablein(330ml) 1. PepsiCan 2. MountainDewCan 3. 7UPCan 4. MirindaCan 5. PepsiDietCanBrandAvailablein(350ml) 1. TropicanaTwisterBrandAvailablein(500ml) 1. Slice 2. PepsiDiet 3. AquafinaBrandavailablein(600ml) 1. Pepsi8 17. 2. Mirinda Orange 3. Mountain Dew 4. 7upBrand Available in (1Ltr) 1. Tropicana Premium Gold 2. Aquafina WaterBrand Available in (1.2 Ltr) 1. Slice 2. Tropicana TwisterBrand available in (2 Ltr) 1. Pepsi 2. Mirinda Orange 3. Mirinda Lemon 4. Mountain Dew 5. 7u...</p>