A STUDY ON DEALERSHIP SATISFACTION

(A study with reference to PEARL BOTTLING PVT LIMITED, VISAKHAPATNAM)

A Project report submitted in partial fulfillment for award of the degree of

MASTER OF BUSINESS ADMINISTRATIONBy

U.Sanjeev Kumar

Regd. No. 1225111157

Under the Esteemed Guidance of

Dr.y.v.v.s.s.s. vara Prasad

(ASSISTANT PROFESSOR)

DEPARTMENT OF MANAGEMENT STUDIES

GITAM UNIVERSITY(Established U/S 3 of UGC Act, 1956)

Visakhapatnam-45

2011-2012

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ACKNOWLEDGEMENT

It is my pleasure to acknowledge and express my gratitude to all those who

helped me throughout in the successful completion of this project.

I am very thankful to Sri. C.RAJASEKHAR Vice President (marketing), of Pearl

bottling Private Limited, Madhurawada, Visakhapatnam, for extending support

throughout the project.

I am thankful to Sri B.SRINIVAS Dy.Manager (F&A), of TSPL, Visakhapatnam, for

providing information regarding the project.

I wish to express my gratitude to Prof K Siva Rama Krishna, Dean & Principal,

GITAM Institute of Management, GITAM University, Visakhapatnam, for giving me

this valuable opportunity to experience the work culture in an organization.

I am grateful to Dr.y.v.v.s.s.s. Vara Prasad, assistant professor, GITAM Institute of Management, GITAM University, Visakhapatnam for his/her continuous

guidance to accomplish this project work, successfully.

U.sanjeev Kumar

1225111157

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DECLARATION

I, u.sanjeev Kumar, a student of Masters of Business Administration (M.B.A.),

GITAM Institute of Management (GIM), GITAM University, hereby declare that the

project work initiated on at ______________________ is a genuine work done

by me in partial fulfillment for the requirement of the degree of Masters of

Business Administration. I confirm this has not been published or submitted

elsewhere for the award of any degree in part or in full.

U.sanjeev Kumar

10-08-2012

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CERTIFICATE

This is to certify that the project Report titled “-------------------------------------” is an original work carried out by ----------------- (Enrollment No 1225111157), under my guidance and supervision, in partial fulfillment for the award of the degree of Masters of Business Administration by GITAM Institute of Management, GITAM University, Visakhapatnam, during the Academic year 2011-12. This report has not been submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.

Signature of Guide

Name and Address of the Guide:

Dr.y.v.v.s.s.s. vara Prasad

Assistant professor

GITAM Institute of Management

Visakhapatnam

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CONTENTS

CHAPTER – I

Introduction

Need for the study Objectives Methodology Limitations

CHAPTER - II

Industry Profile Company Profile

CHAPTER – III

Theoretical frame of study

CHAPTER – IV

Tabulation and Analysis

CHAPTER – V

Summary Findings Suggestions

BIBLOGRAPHY

ANNEXURES

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CHAPTER- I

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INTRODUCTION

Modern age i s fu l l o f compet i t ion. Today on ly way of success i s your continuous efforts towards the growing market needs and in sat i s fy ing them. I t i s the marketer job to know what the market s p e a k s i . e . t h e e v e r - c h a n g i n g n e e d s o f t h e c u s t o m e r t h r o u g h m a r k e t r e s e a r c h & a d o p t t h e m f r u i t f u l l y . I t i s m u s t f o r a l l t h e companies to make pol ic ies accord ing to the customers and theg o v t . T o d a y t o s u c c e e d f o r a n y o r g a n i z a t i o n h a s t o t a r g e t i t s customer needs, to create a culture in the organization i.e. market conscious & responsive to customer needs. Sof t dr inks industry has become b ig bus iness in Ind ia in recent years.The soft drink business underwent major change with the entry of PEPSI and re-entry of COCA-COLA in Ind ia in the late 80s when Par ley wi th brands l i ke Thumsup, L imca & Gold spot was a c lear leader . Coca-Cola took up the product l ine of par ley in 1993-94; today both brands are the Indians favorite soft drinks

` STUDY IS CONDUCTED CONSIDERING THE FOLLOWING ACCEPTS: Firstly, visage is a representative of soft drink market, which is highly promoting with a lot of potential, which is apt to be tapped. Secondly , the behav ior of the reta i ler i s very much inf luenced by the additional benefits he is getting for selling the products having. Th i rd ly , to understand the market condi t ion of the sof t dr inks in the present scenario and the competition level in the market. Cons idered the key ro le of the reta i ler in present day market as an at tempt was made to s tudy the impact of company’s schemes of of fer ing coolers to the retailers.

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NEED FOR THE STUDY

The Indian soft drink industry has been growing at a healthy average o 12%

per annum. The industry sells millions of crates every year giving sales revenue of

cores the per capita consumption of soft drink is certain to expand. Hence, the

manufacturers are making innovations in production & the distribution process as

well as in advertising & creating new kind of attractive packaging to accelerate

their growth. Soft drink market is very vast like an ocean as the demand is

enormous, day-to-day changes in tasters, fashions, trends, etc., lead to tap the

unexplored markets. However it is a pity that to have our own indigenous soft

drink brand name of Indian origin through the length and breadth of the country.

The entry of carbonated soft drink into the Indian soil is relatively new. The credit

for introducing branded soft drink goes to pure drinks private limited, Delhi. Later

on, this company became the franchised bottler of Coca-Cola, exports

corporations.

Accordingly, in 1950, Coca-Cola made its first debut of soft drink in India.

However, the company left India in 1961, as it could not get the expected

business in the market. The exit of Coke, the undisputed leader in the soft drink

market, this company too was forced to leave Indian due to its non-competence

with the & regulations of the Government-I 1977. Then coke became a boon to

national manufacturers & all the players started increasing their business among

the many national players, as if pure drinks emerged as the leader in the Indian

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soft drink market. It believed that by the end Parle captured more than 75% of

the National soft drink market.

Pepsi-Cola North America, Headquartered in Purchase, N.Y., is the

refreshment beverage unit of PepsiCo Beverages and Foods North America, a

division of PepsiCo Beverages and Foods North America also comprises PepsiCo’s

Tropicana, Gatorade and Quaker Foods business in the United State and Canada.

Pepsi-Cola North America has carbonated soft drinks, including Pepsi, Diet Pepsi,

Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root

Beer account for nearly one-third of total soft drink sales in the United States.

Pepsi-Cola North America’s non-carbonated beverage portfolio includes

Aquarian, which is the number one brand of bottled water in the United States,

Dole single-serve juices and Soda, which offers a wide range of drinks with herbal

ingredients. The company also makes and markets North America’s best-selling,

ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks,

respectively.

Consumers adjust purchasing behavior based on their individual needs and

interpersonal factors. In order to understand these influences, researchers try to

ascertain what happens inside consumer’s minds and to identify physical and

social exterior influences on purchase decisions. On some levels, consumer choice

can appear to be quite random. However, each decision that made has some

meaning behind it, even if that choice does not always appear to be rational.

Purchase decisions depend on personal emotions, social situations, goals, and

values. People buy to satisfy all types of needs, not just for utilitarian purposes.

Prestige is another intangible need, and those concerned with status will pay for

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it. However, goods appealing to this type of need must view as high-profile

products that others will see in use. One benefit of targeting this type of market is

that the demand curve for luxury products is typically the reserve of the standard;

high status products sell better with higher prices. Some equate the type of need

to meet with certain classes of goods. For instance, a need for achievement might

drive people to perform difficult tasks, to exercise skills and talents, and to invest

in products such as tools, do-it-yourself materials, and self-improvement

programs, among others. The need to nurture or for nurturing leads consumers to

buy products associated with things such as parenthood, cooking pets,

houseplants, and charitable service appeals. Personality traits and characteristics

are also important to establish how consumers meet their needs. Pragmatists will

buy what is practical or useful, and they make purchases based more on quality

and durability than on physical beauty. The aesthetically inclined consumer, on

the other hand, has drawn to objects that project symmetry, harmony, and

beauty. Intellectuals are more interested in obtaining knowledge and truth and

tend to be more critical.

They also like to compare and contrast similar products before making the

decision to buy. Politically motivated people seek out products and services that

will give them an “edge”, enhancing power and social position. Moreover, people

who are more social can best motivated by appealing to their fondness for

humanity with advertising that suggests emp0athy, kindness, and nurturing

behavior.

PepsiCo, Inc. founded in 1965 through the merger of Pepsi-Cola and Frito-

Lay. Tropicana acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats

Company, creating the world’s fifth-largest food and beverage company, with 15

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brands – each generating more than $1 billion in annual retail sales. PepsiCo

success is the result of superior products, high standards of performance,

distinctive competitive strategies and the high level of integrity of our people.

In modern days, market plays a vital role in rapidly changing industrial scenario. The marketing decline is undergoing reappraisal in the light of vast goals, technological, economic and social changes being faced by the today companies. The order to known the changes in the field of marketing it are necessary to conduct market survey.

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OBJECTIVES OF THE STUDY

1) To know the various promotional, selling and distribution strategies adopted by PEARL BOTTLING PVT LTD

2) To analyze the reasons of selling Pepsi at retailers level.

3) To study the dealers satisfaction.

4) To find out the ways to enhance the sale of Pepsi

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METHODOLOGY

The requisite data been gathered through two important sources:

1. Primate Data

2. Secondary Data

Primary Data:

Information, which has been gathering for the first time, called as primary

data. PRIMARY DATA is data that has not been previously published, i.e. the data

is derived from a new or original research study and collected at the source, e.g.,

in marketing, it is information that is obtained directly from first-hand sources by

means of surveys, observation or experimentation.

Secondary Data:

Secondary data is the data collected by others, for the purpose other than

the solution at hand. As for the study of secondary data was collected from

company reports, reference books, magazines, newspapers, trade and Govt.

publications and various books and records from the marketing departments. As

the study aims at finding out the customer satisfaction, it needed to conduct a

survey. The required collected with help of a questionnaire schedule.

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LIMITATIONS OF THE STUDY

Data collection had some hurdles due to large size of organization.

The scope of the study is limited to some areas.

First, there was time constraint since this study had to complete in a limited

period of 45 days

Some retailers were extremely unhappy with the company support and after sales service

Some of them could not get total flavors due to which they nagged

A number of retailers (pan-shop) being illiterate, it took us lot of time in collecting information.

The mere information, which we get from the retailers, is not sufficient to arrive at a conclusion.

The seasonal changes affect the sell

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CHAPTER-II

INDUSTRY PROFILE

COMPANY PROFILE

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SOFT DRINK INDUSTRY

Soft Drink:

A soft drink is a drink that does not contain alcohol, as opposed to hard

drinks, that do. In general, the term has used only for cold beverages. Hot

chocolate, tea, and coffee have not considered as soft drinks. The term originally

referred exclusively to carbonated drinks (soda), and still commonly used in this

manner.

Marketing:

Soft drinks have commonly sold in stores in bottles and cans. Sales earn a

significant amount of money for the producers and distributors. Most famous

name-brand soft drinks have produced and bottled by local or regional

independent bottling companies. These companies license the name, and they

usually sold the main ingredients, with syrup made by the main manufacturing

plants of the trademark holders. In the past, most cola flavor and other soft drink

ha sweetened with ordinary sugar (sucrose), but to save on production costs,

most companies in the USA have turned to the more economical HFCS (High-

Fructose Corn Syrup) as a sweetener, because of the high price of sugar in the

USA due to sugar quotas. In some countries outside the United States, sugar is

still used. Competition in the industry among soft drink producers is widely

referred to as the “Cola Wars”.

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Diet Soft Drinks:

In recent years, there has been a growing demand for alternatives to sugar-

heavy soft drinks. “Regular” soft drinks largely contain sugar or corn syrup, and

been blamed in recent years for contributing to obesity. Sugars, like other

carbohydrates stimulate the production of the hormone insulin, which causes the

body to store far rather than burn it. “Diet” soft drinks are sweetened with

chemicals, such as aspartame and saccharin, which are perceived as sweet by

most people, yet do not stimulate insulin production or have any food energy or

nutritional value.

In some other areas, these drinks called “Soda pops”, while in and around

Boston, Massachusetts, they often called “tonic”, particularly among older

generations. In North Carolina, the terms “drink” and “soft drink” commonly used

along with “soda” and “coke” to refer to non-alcoholic cold drinks. Some older

generations of Southerners refer to such drinks as “dope”. See the Great Pop Vs

Soda Controversy for maps and geographical trends.

At many restaurants in the U.S., One finds that the products of only a single

major beverage producer such as The Coca-Cola Company or PepsiCo are

available. While a patron who requests a “Coke” may be truly indifferent as to

which cola brand he receives, the careful order taker will confirm intent with a

question like “Is Pepsi OK?” Similarly, “7 Up” or “Sprite” may indicate whichever

clear, carbonated, citrus-flavored drink happens to be at hand. The generic use of

these brands does not affect the local usage of the works “pop” or “soda”, to

mean any carbonated beverage.

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Mixed Soft Drinks:

A graveyard/ suicide/ pop bomb/ swamp water/ garbage soda is made by

mixing many soft drinks together, usually from a soda fountain.

A float created by dropping a scoop of ice cream into a soft drink. In the

Midwestern United States, a soft drink with ice cream added most often

called a “soda” thus leading to quizzical looks from wait staff when people

ask for a “soda” instead of pop. The most common of these is the root beer

float. In Australia and New Zealand, it has known as a Spider.

In Brazil, a scoop of ice cream into a soft drink may have different names:

Vaca preta (black cow) – ice cream in cola.

Vaca amarela (yellow cow) – ice cream in guarana flavored soft drink.

Pantera cor de Rosa (the Pink Panther) – Strawberry ice cream in lemon

lime soft drink.

In the U.S., some floats have specific names as a Brown Cow or Black Cow,

vanilla ice cream in root beer, or Boston cooler, vanilla ice cream in Vernor’s

ginger ale.

Controversy:

Studies showing a correlation between soft drinks and obesity

A study from Harvard shows that soft drinks may be responsible for the

doubling of obesity in children over the last 15 years. From 1991 ad 1995,

adolescent boys, in the US, on the average, increased their intake of soft drinks

from 345 ml to 570 ml. Most soft drinks have sweetened with sugar or corn syrup,

and not artificial sweeteners.

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Dr. David Ludwig of the Boston Children’s Hospital showed that schoolchildren

drinking at least eight U.S. fluid ounces (240 ml) or more of regularly sweetened

drinks daily. Moreover, they are consuming 835 calories (3,500 kilojoules) more

than those avoiding soft drinks, i.e., children who drink soft drinks loaded with

sugar tend to eat much more food than those who avoid soft drinks. Either those

taking sugared drinks lack the same restraint on foods, or sugared drinks cause a

rise in insulin that makes adolescents hungrier, causing them to eat more. Soft

drinks (including diet soft drinks) also typically consumed with other high-calorie

foods such as fast food. Children who drink soft drinks regularly are therefore

fatter on average, in addition to being more likely to develop diabetes later in life

(see below).

This finding is controversial, because children in much of the Third World

also consume large number of soft drinks with even more sugar, and do not share

the same obesity rates as American children, suggesting that other factors are

involved aside from sugar consumption in soft drinks. Suggested factors include

physical activity, and the fact that American soft drinks sweetened with high

fructose corn syrup instead of cane sugar. Monosodium glutamate (MSG), which

used to enhance the sweetness of some soft drink beverages, could also play a

role by stimulating appetite.

Availability:

Some argue that soft drinks are too widely available, from every restaurant,

Movie Theater, vending machine, and similar locations. The wide availability has

said to cause young people to somewhat mistake soft drinks for a major food

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group. Other believe that the high price of soft drinks should offer a significant

disincentive to impulse buy such beverages and prevents sale to children without

parental approval. They also believe that a small amount of will power on the part

of the individual is all that is required to reduce consumption and that one should

take personal responsibility for their own purchasing decisions.

Soft Drink Formula:

Disclaimer:

Making soft drinks is not for the faint of heart, nor the dirty of finger. It is a

solemn enterprise not to enter into lightly, as with marriage or buying used farm

machinery.

With any food-prep, failure to observe basic hygienic principles, follow

directions, and exercise common sense can have grave consequences. Open Cola

assumes no liability for any problems that arise out of the use of this document,

proceed at your own risk. No one is putting a gun to your head, so do not bother if

you cannot boil water. Improper use of cola might result in blunt trauma,

puncture wounds physical illness, mental illness, caffeine dependency, dental

necrosis, acid reflux, death, devastation, and random tax audits. Alternatively, it

might not.

A list of warnings been provided below. We did not include them or our

health- we included them for yours. Read them. Know them. Follow them. Tattoo

them to your backside.

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Just in case you have any doubt, following the directions below may be

hazardous to your health and property. You assume any rick arising from the

manufacture and consumption of cola.

An important note: this is not the receipt for “Open Cola”- that is, the

canned beverage from Open Cola that you may have received at a trade show, or

other venue or outlet. Making canned cola requires millions of dollars in abstruse

gear and manufacturing gizmos. It is easier to make nerve gas than manufacture

cola. You can make a kitchen-sink recipe all on your own. It is our kitchen-sink

recipe. We figured it out somewhere between coding the COLA SDK and

debugging the Linux build of the clever.

Anyway, we have tried to be nice about the disclaimer. If it is not good

enough for your health, here’s what our lawyers have said about the whole

shooting’ match.

By copying and/ or distributing the program, you hereby agree to the

following:

Indemnity: You should indemnify, defend, and hold harmless Open Cola,

its affiliates, directors, officers, and employees from and against ay third-party

claim, demand, cause of action, debt, liability, cost or expense (including, but not

limited to, reasonable attorney’s fees) arising out of your use of the recipe, or any

derivative thereof. Including, but not limited to, any claims arising from your

distribution of soft drink based on the recipe or any derivatives thereof.

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How soft drinks made?

Water, Water, Everywhere:

Soft drinks are mostly water. Therefore, the quality of the water going into

your favorite soft drink is very important. A series of filtration systems produces

the high quality water that is fresh, clean, and clear.

The Flavor Secret:

Here is where the magic happens. From secret recipes, flavorings have

added to give each soft drink its unique taste. By combing sweeteners, herbs,

berries, and many other ingredients, a syrup base has created which have added

to the pure water.

Adding Bubbles is a Gas:

After the flavors have added to the water, the result is a great taste, but

slightly boring beverage. Now, the bottler brings it to life by adding carbon

dioxide, a tasteless, odorless, natural gas, with machine called a carbonator.

Filler Up:

Now we are ready to put the great tasting bubbly into a container. It has

transferred under pressure to a filling machine. The filling machine squirts just the

right amount into squeaky-clean containers, which has immediately sealed for

freshness.

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Now for the Warm-up:

Throughout the manufacturing process, soft drinks are usually chilled. If

they transferred this way, condensation would form on the outside of the

container and make cartons and cases wet. Therefore, every container has

sprayed with warm water to bring it to room temperature and dried before

moving on to shipping.

Name it and Send it Packing:

Many soft drink containers have labels pre-printed before they arrive at the

soft drink plant. If not, they have applied, placed in cartons or trays, bundled into

large pallets, and whisked away to you.

SOFT DRINKS NORMS & CONTENTS

Product Information – Ingredients

We only use the finest ingredients to make Pepsi-Cola products. To

guarantee our consumers consistent quality, each ingredient must pass our high

standards, rigorous quality control tests, and strict bottling procedures.

All ingredients have listed on the label in order of decreasing amount.

Pepsi-Cola products contain natural flavors, including extracts of the kola nut,

vanilla beans and flavor oils derived from natural sources such as citrus and other

fruits. Caramel (made from corn sugar) adds color and flavor to our colas. Other

ingredients add a refreshing taste: phosphoric acid in colas; citric acid and sodium

citrate in Mountain Dew, Slice, and Diet Pepsi.

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We also put a freshness date on every can and bottle. Soft drinks may lose

some flavor over time so our freshness date tells consumers when the product is

freshest and best tasting.

Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel,

which shows the number o calories and other nutrients per serving. There is

essentially no fat in any Pepsi-Cola products. The main ingredients found in Pepsi-

Cola products include carbonated water, carbohydrates, sugar, sodium,

potassium, and caffeine. For a complete breakdown by ingredients by product,

see our product information for Pepsi, Diet Pepsi, Pepsi ONE, Mountain Dew,

Slice, Mug Root Beer, or Aquafina.

Acesulfame-K

Also known as Acesulfame-K, ASK and the brand name Sunett.

A non-nutritive, calorie-free sweetener discovered in 1967. Since

Acesulfame- Potassium is 200 times sweetener than sucrose (table sugar), only a

small amount needed to sweeten a product.

Acesulfame-Potassium is currently used in some of our diet beverages and

in more than 1,000 products around the world i.e., desserts, baked goods, soft

drinks, candies, canned foods and pharmaceutical products) and has been the

subject of approximately 90 scientific studies to ensure is safety.

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Ascorbic Acid:

Another name for Ascorbic Acid is Vitamin C. The ascorbic acid used in our

carbonated soft drinks functions as an antioxidant to protest the flavors, color,

and taste. In some beverages, we also add it to provide the nutritive value found

in Vitamin C. Check out of the amount of Vitamin C that Aquafina Essentials

provides by clicking onto its website.

Aspartame:

Aspartame is a sugar substitute used in our diet beverages and many other

food products. Aspartame is made of the same building blocks as protein, so has

considered a “nutritive sweetener”, but the very small amounts used in diet

drinks contribute no calories.

Blue-1:

Blue-1 is an FDA-approved food coloring used in a variety of products such

as jellies, condiments, puddings, and beverages.

For the past 50 years, health professionals have carefully evaluated the

safety and suitability of colors for use in foods. The types of food colorings we use

here at Pepsi have been review by reputable scientific organizations and are safe

for consumers to use.

Here at Pepsi, in our products we only use ingredients that have fully

approved and deemed safe for use in foods by the Food and Drug Administration.

For more information about Blue-1, we encourage you to contact to

following organization.

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Brominated Vegetable Oil (BVO):

Brominated Vegetable Oil had been use by the soft drink industry since

1931. A widely used food additive have extensively tested and approved by the

U.S. Food & Drug Administration.

Brominated Vegetable Oil derived from soybean oil that has modified in

order to keep the flavoring oils well blended.

Caffeine:

People have enjoyed foods and beverages contain caffeine for thousands of

years. Caffeine is a substance that occurs naturally in more than 60 plants

including coffee beans, tealeaves, kola nuts and cocoa beans, where caffeine is

actually not occurring in a beverage, caffeine has added to certain soft drinks as

part of the flavor profile. Caffeine has a classic bitter taste that enhances some

flavors and balances the sweetness of other flavors. The amount of caffeine in a

soft drink is only a fraction of that found in an equal amount of coffee or tea. The

long history of caffeine’s use confirms that it is safe when consumed in

moderation. Moderate amounts of caffeine intake have deemed safe by the

American Medical Association, the American Cancer Society, and the U.S. Food

and Drug Administration. For people who wish to restrict their caffeine intake,

many caffeine-free soft drinks are available.

Carbonated Soft Drinks:

More than 5,560 million liters of carbonated soft drinks have consumed

every year in the U.K. Such drinks are crammed full of sugars and acid that attack

our teeth and may result in dental decay.

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Tooth decay happens when teeth have attacked by acid, and this can

happen in two ways. Acid attacks can happen because of plaque bacteria acting

on the sugars in our diet, or as a direct result of the acids in food dissolving away

the enamel on the surfaces of our teeth. As carbonated soft drinks tend to

contain high amounts of both sugars and acids, they are the worst possible

combination for dental health.

Not only are sugary drinks detrimental for oral health, they are caloric and

provide little in the way of nutrients. Even those drinks that have labeled as ‘sugar

free’, ‘reduced sugar’ or ‘low sugar’ can still contain enough sugar to cause

damage to your teeth, d have the same acids as the standard carbonated drinks.

Therefore, it has recommended replacing carbonated drinks in the diet with other

options where possible.

Energy Drinks:

There are three basic types of energy drinks:

Refreshment energy – formulated to replenish energy levels for someone

who had perhaps run down or recovering from illness.

Sports drinks – formulated to rapidly replace fluids during exercise and

maintain the body’s blood glucose levels.

Functional energy – aimed at anyone who wants to gain a quick burst of energy

and alertness.

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Energy drinks contain complex carbohydrates – a blend of slow, medium-

and fast-acting sugars – and are able supply energy to the body over an extended

period. They may also contain ‘energy enhancing’ ingredients such as caffeine or

turbine to boost alertness.

The safety of energy drinks, in particular their energy enhancing

ingredients, has investigated by a European committee. When it comes to

caffeine, the majority o energy drinks have found to contain the same amount as

a cup of filter coffee. The committee therefore felt there was no concern about

the contribution of energy drinks for non-pregnant adults.

However, it is recommended that pregnant women should moderate their

caffeine intake overall and this means not more than four cans of energy drink per

day. Caffeine in energy drinks may also lead to overexposure in children, who do

not normally consume much tea or coffee and are therefore more susceptible to

the effects of caffeine on the body.

In relation to other energy enhancing ingredients, such as turbine, the

committee was unstable to conclude that the level reported in energy drinks was

within any upper safety limit. It concluded that further studies are required in

order to establish an upper safe level for daily intake.

Soft Drinks Linked to Diabetes:

In 2004, a study of 50,000 nurses over a period of 8 years found that

drinking one or more sugar-sweetened soft drinks per day increases one’s risk of

developing diabetes by 80%, when compared to those who drank less than one

soft drink per month. This finding was independent of other lifestyle factors.

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In the same study, a similar observation has made for fruit juice consumption.

This finding is controversial.

Soft Drinks in India

Euro monitor International’s Soft Drinks in India report offers a

comprehensive guide to the size and shape of the market at a national level. It

provides the latest retail sales data, allowing you to identify the sectors driving

growth. It identifies the leading companies, the leading brands and offers

strategic analysis of key factors influencing the market- be the new product

developments, packaging innovations, economic/ lifestyle influences, distribution

or pricing issues. Forecasts illustrate how the market is set to change.

Soft Drinks in Indian Market

Introduction

Soft drink market size for FY00 was around 270 m.n. cases (6480 mn

bottles). The market witnessed 5-6% growth in the early ‘90s. Presently the

market growth has growth rate of 7-8% per annum compared to 22% growth rate

in the previous year. The market size for FY01 expected to be 7000 mn bottles.

Soft Drink Production Area

The market presentence is regional based. While cola drinks have main

markets in metro cities and northern states of UP, Punjab, Haryana, etc., Orange

flavored drinks are popular in southern states. Sodas too have sold largely in

southern states besides sales through bars. Western markets have preference

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towards mango-flavored drinks. Diet coke presently constitutes just 0.7% of the

total carbonated beverage market.

Growth promotional activities:

The government has adopted liberalized policies for the soft drink trade to

give the industry a boast and promote the Indian brands internationality.

Although the import and manufacture of international brands like Pepsi and Coke

have enhanced in India, the local brands are being stabilized by advertisements

good quality and low cost.

The soft drinks market until early 1990s was in hands of domestic players

like Campa, Thumps Up, Limca etc., but with opening of economy and coming of

MNC players Pepsi and Coke the market has come totally under their control. The

distribution network of Coca Cola had 6.5 lakhs outlets across the country in FY00,

which the company is planning to increase to 8.0 lakhs by FY01. On the other

hand, Pepsi Co’s distribution network had 6.0 lakhs outlets across the country

during FY00 which it is planning to increase to 7.5 lakhs by FY01.

Types:

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 has divided into fruit drinks and soft drinks.

Soft drinks have further divided into carbonated and non-carbonated drinks. Cola,

Lemon and Oranges are carbonated drinks while mango drinks come under non-

carbonated category.

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The market can also segment based on types of products into Cola products

and non-cola products. Cola products account for nearly 61-62% of the total soft

drinks market. The brands that fall in this category are Pepsi, Coca-Cola, Thumps

Up, Diet Coke, Diet Pepsi etc., Non-Cola segment which constituents 36% can

divided into 4 categories based on the types of flavors available, namely: Orange,

Cloudy Lime, Clear Lime, and Mango.

PEPSI WORLD PROFILE

Pepsi-Cola North America, Headquartered in Purchase, N.Y., is the

refreshment beverage unit of PepsiCo Beverage and Foods North America, a

division of PepsiCo, Inc. PepsiCo Beverage and Foods North America also

comprises PepsiCo’s Tropicana, Gatorade and Quaker Foods business in the

United States and Canada.

Pepsi-Cola North America has carbonated soft drinks, including Pepsi, Diet

Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug

Root Beer account for nearly one-third of total soft drink sales in the United

States.

Pepsi-Cola North America’s non-carbonated beverage portfolio includes;

Aquafina, which is the number one brand of bottled water in the United States,

Dole single-serve juices, and SoBe, which offers a wide range of drinks with herbal

ingredients. The company also makes and markets North America’s bestselling,

ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks,

respectively.

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PepsiCo, Inc. is one of the world’s largest food and beverage companies.

The company’s principal businesses include:

Frito-Lay snacks

Pepsi-Cola beverages

Gatorade sports drinks

Tropicana juices

Quaker foods

PepsiCo, Inc. founded in 1965 through the merger of Pepsi Cola and Frito-

Lay. Tropicana has acquired in 1998. In 2001, PepsiCo merged with the Quaker

Oats Company, creating the world’s fifth-largest food and beverage company,

with 15 brands – each generating more than $ 1 billion in annual retail sales.

PepsiCo’s success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high level of integrity of

our people.

OVER VIEW

PepsiCo is a world leader in convenient foods and beverages with 2004

revenues of more than $ 29 billion and 153,000 employees.

The company consists of Frito-Lay North America, PepsiCo Beverages North

America, PepsiCo International, and Quaker Foods North America. PepsiCo brands

are available in nearly 200 countries and territories and generate sales at the

retail level of about $ 78 billion.

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Many of PepsiCo’s brand names are more than 100- years old, but the

corporation is relatively young. PepsiCo has founded in 1965 through the merger

of Pepsi-Cola and Frito-Lay. Tropicana has acquired in 1998 and PepsiCo merged

with the Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers

product choices to meet a broad variety of needs and preferences – from fun-for-

you items product choices that contribute to healthier lifestyles.

PepsiCo’s mission is “To be the world’s premier consumer Products

Company focused on convenient foods and beverages. We seek produce healthy

financial rewards to investors as we provide opportunities for growth and

enrichment to our employees, our business partners and the communities in

which we operate. And in everything we do, we strive for honesty, fairness and

integrity”.

PepsiCo Headquarters

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

from New York City. The seven-building headquarters complex has designed by

Edward Durrell Stone, one of America’s foremost architects. The building occupies

10 acres of a 144-acre complex that includes the Donald M. Mendel Sculpture

Gardens, a world-acclaimed sculpture collection in a garden setting.

Masters such as Augusta Rodin, Henri Laurens, Henry Moore, Alexander

Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Olden berg, focus the

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collection of works on major twentieth century art, and features works. The

gardens originally has designed by the world famous garden planner, Russell

Page and have been extended by Francois Goff net. The grounds are open to the

public, and a visitor’s booth is in operation during the spring and summer.

PEPSI PRODUCTSPepsiThe Joy of Pepsi.Product Informationwww.pepsico.com

Mountain DewProduct Informationwww.mountaindew.com

Pepsi LimeHave the Lime of Your Life.Product Informationwww.pepsilime.com

Diet Mountain DewProduct Informationwww.mountaindew.com

Diet Pepsi LimeHave the Lime of Your lifeProduct Informationwww.pepsilime.com

Code Red A sensation As real as the Streets.Product Informationwww.codered.com

Diet Pepsi O carbs. O calories. It’s the diet colaProduct Informationwww.dietpepsi.com

Diet Code Red Product Informationwww.codered.com

Pepsi TwistA Twist on a Great ThingProduct Informationwww.pepsitwist.com

LivewireProduct Informationwww.mountaindew.com/ livewire

Diet Pepsi TwistProduct InformationA Twist on a Great Thing

AMPMmmm.EnergyProduct Informationwww.ampenergy.com

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Diet Pepsi VanillaThe Not-So-Vanilla VanillaProduct Information

AquafinaPurity Guaranteed Product Informationwww.aquafina.com

Wild Cherry PepsiCheck Out The CherryProduct Information

Mug Root BeerThe Taste You Carve.Product Informationwww.mugrootbeer.com

Diet Wild Cherry PepsiProduct Information

Diet Mug Root BeerProduct Information www.mugrootbeer.com

Pepsi ONEBring together great taste with one calorie. One if.Product Informationwww.oneify.com

Mirinda OrangeSavor Your Mirinda Product InformationOther Mirinda Flavors

Sierra MistShockingly Refreshing Product Informationwww.sierramist.com

Tropicana Juice DrinksProduct Informationwww.tropicana.com

Sierra Mist Free Product Informationwww.sieramist.com

FrappuccinoThe taste that makes the break.Product Informationwww.starbucks.com

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Mountain Dew Product Information www.mountaindew.com

Pepsi VanillaThe Not-So-Vanilla VanillaProduct Informationwww.pepsivanilla.com

Starbucks Double sot®Is the only “get you going” beverage that has the delicious intensity of chilled Starbucks espresso and cream? Product Informationwww.soubleshot.com

Tropicana Twister SodaTropicana Twister TM Soda gives you the intense fruit flavors you are looking for. Available in Orange, Diet Orange Strawberry and Grape.

Aquafina Flavor SplashPurity GuaranteedProduct Informationwww.flayorspalsh.com

Lipton BriskProduct Informationwww.liptonbrisk.com

Aquafina SparklingPurity GuaranteedProduct Informationwww.aquafina.com

SoBeProduct Information

Lipton Iced TeaProduct Informationwww.liptont.com

Quaker Milkier ChillersProduct Informationwww.milkchillers.com

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PROFILE OF PEPSI FOODS INDIA LIMITED

AND PEARL BOTTLING PRIVATE LIMITED

Pepsi Food Indian Limited drinks is owned by multinational giant of

beverages of company incorporation; of New York, USA – which has a turnover of

$ 28 billion and an average sales volume of $ 10 billion in the world. Prior of

liberalization in 1990, corporation entered into a joint venture with TATA group

company Voltas with 24% equity under the Punjab agro industry corporation with

36% equity and with an investment of $ 98 million. After LIBERLISATION of our

economy, Voltas share has acquired by leaving only 8% to the Punjab agro

industries and later on, it bought all the equity shares and converted food from a

three – way joint venture to a fully owned subsidiary.

Pepsi Foods Indian Limited is head quartered in New Delhi. It has 11

companies – owned bottling plants and 15 franchises throughout the country.

Company earlier used “Lehar” as a prefix to each of its brand names. Later it had

asked by the government to drop the prefix. Another challenge is that Parle has

come from Coca-cola.

The Parle and Coke dominated the Indian soft drink market in the ensuing

days. Coca-Cola purchased Parle’s brand such as Thumps Up, Limca, etc., along

with its distribution network in 1993, at present has a market share of 48.5% and

ranks number one in total sales of soft drinks, where as Pepsi has a market share

of 47.8% and ranks next.

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PROFILE OF PEARL BOTTLING PRIVATE LIMITED

PBPL incorporated in 1982 at Madhurawada in Visakhapatnam District of

Andhra Pradesh for the purpose of manufacturing soft drinks.

It was since then the company had started commercial production of

company cola products. It produced cola, orange and lemon flavors under the

brand names of thrill, rush, and sprint. It also produces, Mc-Dowell, Bagpiper

soda.

It produced these drinks under franchise agreement, but the company

could not exist in the market due to the stiff competition from parley products. In

February 1992, the company signed to manufacture and market products under

franchise agreements. Franchise is a contract, which gives the company the right

to do the business under the name and image of principal’s. According to this

agreement, PBCL has given its consent…

To manufacture soft drinks using the concentrate supplied by Pepsi foods.

To sell soft drinks and prices fixed by.

To advertise and market within specified areas for the products.

From 23rd April, PBPL started distributing the stocks received from Cuttack

Plant. Commercial production started in PBPL from June 1992 onwards.

Initially four brands viz., Seven-Up, Mirinda, and Lehar soda were bottled

and distributed where as slice have supplied by Cuttack plant. In May 1993, a

cloudy lemon flavor called “TEEM” was introduced which was not very well

received by consumers because of the well established “LIMCA”.

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In April 1998 a new cloudy lemon flavor, namely Miranda Lemon has

introduced after discounting TEAM.

PBPL limited appointed as franchise by foods limited, in activities originally

constructed by Campa-Cola soft drinks in 1980 at Madhurawada due to losses

suffered by Campa-Cola, the unit became insolvent.

As a result, Andhra Pradesh State Finance Corporation auctioned the

premises, in 1990, after which it has purchased by PBPL. It started production in

1991. Initially it produced Mc-Dowell company’s brands – THRILL, RUSH, SPRINT,

MC-DOWELL’S SODA and BAGPIPER SODA. In February 1992, PBPL signed a

memorandum of understanding with foods. The product has launched in 1992.

From April 23rd, it started its distribution on receiving stocks from Cuttack.

However, commercial production started at Visakhapatnam from June 1992

onwards. In the beginning FOUR drinks were bottled namely; PEPSI, MIRINDA,

LEHAR SODA, SEVEN-UP were bottled and distributed were as SLICE continued to

be supplied from Guntur Plant.

The company distributes its products in five districts, they are:

VISAKHAPATNAM

SRIKAKULAM

VIZIANAGARAM

EAST GODAVARI

WEST GODAVARI

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FINANCIAL STRUCTURE

Any company, which has to start and operate its business, has to invest its

capital in fixed assets and floating assets and it is has to meet the daily

requirements of the company. However, depending on the nature of the business

and the product offered by the company, the ratio of investment of capital in

fixed and floating assets differs.

The following shows the financial structure of the pearl bottling limited

TYPES OF CAPITAL AMOUNT (IN LAKHS)

Funds employed 60

Working capital 15

Institution finance 40

PLANT LAYOUT

The layout of the bottling plant of PBPL confines for all the products based

on the line layout. The machines and equipment have imported from Germany,

which produces the best capital equipment in the world. The machinery and all

the equipment has arranged as per the sequence of operations. The machines

and workers are specialized in operations such as the preparations of syrup,

cleaning the bottles, filling the bottles, aerating and sealing the bottles with

crowns. All these carried on a continuous movement. The reasons for choosing

the product layout are

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There is continuous supply of material.

The brands are all standardized products.

The demand for the products brand is reasonably stable.

The volume of production is adequate for the reasonable utilization of

equipment.

Due to the above reasons, the product layout offers certain advantages.

The product cycle speeded up since the company follows a continuous operation

movement; the cost of material handling goes low. The total floor space is

required by the machine is less than for other types of plant layout.

PLANT CAPACITY

The company installed latest up to date automatic plant confirming to plant

layout. The capacity of the plant is 24000 bottles per hour i.e., at the speed of 400

bottles per minute. The months from March to June, the plant is used to its full

capacity by running three shifts every day. Each shift consists of eight hrs of so,

during the summer season, the plant runs round the clock. This is because the

demand reaches its peak in these summer months hence the company has to

produce enough bottles of soft drinks at a speed to keep in pace with the

disappearance of soft drinks from the shelves of the retailers.

PRODUCTION SCHEDULE

The production schedule has fixed by taking into consideration the present

or current market demand. It also caters to the availability of empty bottles and

the inventory position of filled up bottles of varying flavors.

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The production schedule for each brand fixed daily i.e., filling up of the bottles of

each brand and flavor. This has an advantage wherein the banded products can

manufactured one at a time. The glass bottles used for filling the soft drink are of

the volumes capable of containing 300 ml of soft drink. There are also bottle of

200ml, 500ml 1 ltr, 1.5 ltr and 2 ltr capacities to fill by soft drinks.

QUALITY CONTROL

PBPL takes great care to maintain the quality by controlling the products in

their factory. The bottles have usually examined for impurities continuously as the

bottles move out. Samples have checked after every 10 minutes of the production

time by the chemist for its quality and hygienic condition. The chemical analysis

has made for flavors and the gas content checked. If any defects have noticed, the

production is suspended and the corrective and the corrective measures have

taken to set right the bottling, process irregularities. Samples have taken from

each week for quality checkup. Moreover, the agency of the company also lifts

samples from the market at random for quality check up at anytime to make sure

that the quality has maintained to the exact standard of the parent company.

At the end of the production schedule, daily all the equipment plant floor

and we patches cleared with bleaching powder or some other solution. The

standard of hygiene maintained inside the production steps is commendable.

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SYRUP MAKING

In this process the syrup of a particular type is prepared by heating sugar

with activated carbon powder and filter aid (by flousuper cell’) in the treatment

tank for a specified time and up to a particular temperature. During the

treatment, most of the color, odor, and some organic impurities have removed

from the sugar syrup. This treated syrup then passes through the filter press,

fitted with; filter papers and heat exchanges, and then the clear syrup has

collected in the syrup-making tank. The essence of particular products will be

added for which a required amount of sugar is taken treatment Sugar syrup and

essence are then mixed in the tank with the help of a mechanical stirrer and

eventually the favor syrup is ready to be used in the end use of the product.

WATER TREATMENT

This is the second stage. In the process of soft, drink manufacture. Water is

the basic ingredient in the soft drink, which comprised up to 90% of the quantity.

Hence, the quality of water is of great significance to the soft drinks

manufacturer. Here, when water has brought to the treatment tank, it has

treated with a few chemicals such as hydrated lime, bleaching power and ferrous

sulphate, which have mixed thoroughly with the help of a mechanical stirrer.

The reasons for water treatment are as follows:

It removes the hardness of water and converts it into soft water.

It frees the water from microorganisms.

It reduces the alkalinity to a required level.

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This treated water passes through the specially designed filtration plant

containing chemicals such as activated carbon (granular) and finally the

manufacturer will get the water suitable for soft drink bottling. Soda bicarbonate

used for maintaining the equipments in hygiene conditions.

BOTTLING

In this process, both the concentrate and the purified water has mixed

along will carbon dioxide gas and then bottled. In the soft drink field, only

reasonable glass bottles are sterilized to make them sparkling clean, before the

beverage is filled in the for this purpose, the company makes use of machine

known as ‘BOTTLED WORKER’. For cleaning up of the bottles, washing chemicals

such as caustic soda sand tri-sodium phosphate are used. In the bottle washing

system, through one end of eh worker the dirty bottles has fed which are washed

automatically while passing through various designed chambers containing

chemical solutions at different temperatures and concentration. Hot water has

used for cleaning the bottles. The bottles, after sterilization are collected at the

other end of the washer. They have sent towards the filter on conveyor belts.

Before the beverage reaches the filling machine, it saturated with carbon dioxide

gas. This carbon dioxide gas gives “fizz” to the soft drinks and alongside prolongs

the shelf life of the products. The bottlers and then moved on the conveyor belts

to the filling machines where the beverage is filled under pressure. From there

the bottles are sent to the crowner where sealing of the bottle in done with the

help of crowns. The crowns have used to retain the carbon dioxide flavors as well

as to protect the products from spoilage and contamination.

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CRATING

The bottles collected from conveyor belts have placed manually into plastic

crates. Each plastic case has a capacity of 24 bottles only. These crates protect the

bottles form breakage as well as it ensures easy handling of the bottle. These

crates put on specially designed vans for carrying the bottles to their various

consumption points.

PERCENTAGE OF FLAVOR MOVEMENT IN THE MARKET

PEPSI 46.65%

THUMS UP 19.45%

LIMCA 12.44%

7 UP 12.22%

MANGO 9.22%

MANUFACTURING PROCESS OF A SOFT DRINK

For manufacturing a soft drink, the following raw materials are required.

1. Water

2. Sugar

3. Activate carbon powered

4. Hyflousuper cell

5. Filter paper

6. Essence

7. Hydrated line

8. Bleaching power

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9. Ferrous sulphate

10.Activate carbon (granular)

11.Soda-bio-carbonate

12.Carbon- dioxide gas

13.Tri sodium phosphate

14.Plastic crates

15.Caustic soda

The process of manufacturing soft drinks has mainly divided into four parts, they

are:

1. Syrup making

2. Water treatment

3. Bottling

4. Crating

In syrup making process, the syrup of a particular product is prepared by

heating sugar with activated carbon power and filter (Hyflousuper cell) in the

treatment tank for a specified time up to a particular temperature. During

treatment, most of the color, odor, and some organic impurities have removed

from the sugar syrup. This treated passes through the filter press filter with

papers and heat exchanges and the clear syrup is collected in the syrup moving

tank where the essence of a particular product will be added for which a required

amount of sugar is taken for treatment. The essence and sugar syrup has mixed

into the tank with the help a mechanical stirred and finally the flavor syrup is

ready for use in finished products.

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The second process is water treatment. As an added ingredient, water can

compromise up to 90% of a soft drink. The quality of water is thus of a particular

importance to the soft drinks manufacturers. In this process, water has brought

to the treatment tank and then water treatment chemicals such as hydrated lime,

bleaching power and ferrous sulphate has added to the tank and moved

thoroughly by the help of mechanical stirrer. The treated water-is then passed

through the specially designed filtration plant containing chemicals such as

activated carbon (granular) and finally the manufactured will get the standard

water i.e., suitable for soft and then bottles are moved towards crowner where

the sealing is done w3ith the help of crowns. The crowns used in order to retain

the carbonation flavors as well as to protect the products from outside

contamination and spoilage. The bottles have checked for maintaining the

required standard. Finally, the filled bottles have checked for maintaining the

required standard. Finally, the filed bottles have collected in plastic crates from

the conveyor. The marketable le lot is only comprised of a crate and filled with 24

bottles in each plastic crate. This crate is mainly useful to protect the bottles and

keep them in good condition and eliminates breakage and collected back in the

same crates. Then the finished products have transferred to the shipping

department of shipment.

ORGANIZATION STRUCTURE AND MANAGEMENT

The word organization has two common meanings. The first meaning

signifies institution or functional group, and the second one refers to the process

of organizing the way of work, which has arranged and allocated among members

of the organization, so that the goal of the organization can achieved efficiently.

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The organizing process involves balancing the company’s need; both for stability

on one hand and change on t3he other hand. Na organization structure gives

stability and reliability of its goals. While altering an organization structure can be

a means of adopting and bringing in about a change, which could otherwise be a

source of resistance to change.

Organizing involves analysis of activities to be performed for achieving

organizational objectives grouping them into various individual’s and delegation

them with appropriate authority so that they can carry on their work properly.

Organization structure can defined as an arrangement and relationship of

component parts, which also helps to determine the position or company. An

organization structure specifies the division of work activities and shows us how

different activities linked.

Organization structure is a basic framework within which the manager’s

decision-making behavior takes place. Structure deals with relationships. It is an

important scientific concept. In simple terms-it has defined as a pattern in which

various parts or compounds are inter-related or inter-connected.

Five elements comprise an organization structure:

Specialization of activities

Standardization of activities

Coordination of activities

Centralization and decentralization of activities

Size of the work unit

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The Managing Director, Mr. Haranath Reddy, is the Head of the

organization, which had assisted by a team of Senior, well-qualified and

experienced managing personnel.

LIST OF STAFF

Sl. No.

Description No. of Employees

1 VICE PRESIDENT - FINANCE 1

2 COMMERCIAL MANAGER 1

3 MARKETING DEVELOPMENT MANAGER 1

4 SENIOR GENERAL MANAGER – SALES 1

5 TERRITORY DEVELOPMENT MANAGER 4

6 ACCOUNTS DEVELOPMENT COORDINATOR 3

7 TRADING MANAGER 1

8 ASSISTANT TRADING MANAGER 1

9 MARKET EQUIPMENT MANAGER 1

10 GENERAL MANAGER (OPERATIONS) 1

11 ASSISTANT PERSONAL MANAGER 1

12 STORE EXECUTIVES 3

13 CUSTOMER CENTRAL EXECUTIVE 25

14 TERRITORY COORDINATOR 1

15 ROUTE AGENTS 50

16 SALES TRAINEE 1

17 CHEMISTS 3

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18 ACCOUNTS 5

19 SUPERVISORS 8

20 CLERKS 8

21 OPERATIONS 10

22 ELECTRICALS 3

23 FITTERS 2

24 COMPUTER CUM TELEPHONE OPERATORS 12

25 SECURITY GUARDS 6

26 OFFICE BOYS 13

27 SWEEPERS AND HELPERS 3

(NOTE: ACCORDING TO 2011 COMPANY’S INFORMATION)

The above table shows the descriptions of employees along with their designation

and the total no. of employees that constitute each designation.

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CHAPTER-III

THEORITICAL FRAME WORK OF THE STUDY

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Introduction4P’s of marketing Product:A business needs to consider the products that it p r o d u c e s a n d t h e s t a g e o f t h e p r o d u c t l i f e c y c l e t h a t a p r o d u c t i s a t . Marketing strategies will vary according to the type of product and its stage in the life cycle. In case of Pepsi, in the rural markets, the 300mlbott le and now days the new smal l or commonly known as the “chota Pepsi” is very much popular. The Pepsi Co. is even thinking of introducing the i r new Peps i -Aha, but present ly they are concentrat ing more on the n o r m a l P e p s i , a s t h e r u r a l m a r k e t i s a n i c h e m a r k e t . P e p s i i s e v e n s u c c e s s f u l i n i n t r o d u c i n g t h e b i g 1 - 1 . 5 l i t e r P E T b o t t l e s i n t h e r u r a l m a r k e t s . T h e s e b i g b o t t l e s A r e v e r y p o p u l a r d u r i n g b i g f e s t i v a l s a n d marriages.Price:PRICING POLICIESThe company first has to decide what it wants to accomplish with its particular product offer. If the company has selected its target market and market positioning carefully, then its marketing mix strategy-including price – will be straight DETERMINING DEMAND

Each price that the company might charge will lead to a different level of demand and will therefore have a different impact on its marketing objectives. The relation between alternative prices that might be charged in the current time. In the normal case, demand and price are inversely related. That is, the higher the price, the lower the demand, and the lower the price, the higher the demand. Demands set a selling on the price that the company can charge for its product. In addition, company costs set the floor. The company wants to charge a price that covers its cost of producing, distributing, and selling the product, including a fair return of its effort and risk.SELECTING A PRICING METHOD

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Given the three C’s the customer’s demand schedules, the cost function and competitors the company is now ready to select a price. Within the range of possible determined by market demand and costs, competitors costs, prices, and possible price reaction help the firm establish where to set its price. The PepsiCoPvt. Ltd needs to benchmark its costs against its competitor’s costs to learn whether it is a operating at a cost advantage or disadvantage. The company also needs to learn the price and quality of competitor’s offers. The firm sends out comparison shoppers to price and assess competitor’s offers, acquire competitor’s price lists, buy competitor’s equipments and take it apart, and ask buyers how they perceive the price and quality of each competitor’s offer. Once the company is aware of competitor’s prices and offers, it uses them as an orienting point for its own pricing. If the firm’s offer is similar to a major competitors offer, then the firm will have to price close to the competitor has or lose sales. If the firm’s is inferior, the firm will not be able to charge more than the competitors will. If the firms offer is superior, the firm can charge more than the competitors can. PromotionSALES PROMOTIONAL ACTIVITYSales promotion a very ingredients in the marketing companies consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or grater purchase of particular product or services by customers. Promotional activities play a key role in the entire marketing effort being carried out by LUMBINI BEVERAGA, which is coordinated with those of PEPSI CO.INDIA. These promotional activities generate more sales as well as create a good image of the Product in the mind of customers. .Promotion tools used by PEPSI company of its marketing activities are:1. Point of sale display2. Incentive to Retailers3. Sales promotion through sponsoring special events.4. Sales promotion through various schemes.5. Advertising.6. Scratch coupon card7. Free gift items.Point of sale display: -

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As it is mentioned that soft drink are kept in FMCG category so it is very necessary to make a proper display of its product. General consumer demands the thing, which he looks first. Because in FMCG product consumer is not too much concern about product. So outlet owners are suggested to keep bottles in stand and keep it out of the shop. So that customers have an eye contact with product as he enters the shop. 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 rand which is readily available and catches the customer. For this reason PepsiCo invest heavily in this categories by supplying the shop owners with stands so that they can keep the bottles outside on those stands so that customer have an eye contact with themes he/she is entering the shop. Also PEPSI supply the shop with coolers with a glass front so that cooled bottles can be seen by the customers for making the decision on the flavor that person is going to buy. Apart from these, PepsiCo takes keen in the other type strategies like painting the walls of the shops with the PEPSI logo and the shop name. This increases the visibility of the brand among the customer when he/she enter the shop.Incentive to Retailers:-Another method of sales promotion is to give incentive scheme to retailer, under this promotional method retailers are given a target regarding the minimum no. of crates that they have to sale in that period, on achieving the target the dea ler i s g iven at t ract ive pr i zes which ranges f rom f ree bottles, gift items.SPONSORING SPECIAL EVENT:- PEPSI is sponsoring various events, which include cricket matches, local events like quiz competitors, Parties, local sports, Orchestra, cultural programmed etc.Advertising Policy:-Advertising is considered the most important tool to increase sales. PEPSI uses various methods to advertise its product; advertising is made through TV channels, Radio, magazines, Newspaper, Banners etc. Scratch Coupon Card:-Scratch card i s another type of too l , which he lps to increase sa les . In scratch card the name of the gift item is printed and a layer is covered that pr i ze name. Out let owner are g iven that card and af ter scratch ing whatever they get company distribute it among them. PEPSI has distributed scratch card by which outlets owners are facilitated by torch, 600ml pet, 300ml liquid etc.

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“MERCHANDISING POLICY” In today’s fast moving industry and highly competitive market, only those products are likely to be purchased which are capable of hitting the impulse of the consumers. The products appeal should be penetrate of consumers mind. The concerned product should induce to consumers

STRENGTH:1) Good market penetration.2) Motivated channel partner.3) Wel l def ined routes .WEAKNESS:1) All brands were not available in at least 80% shops.2) Complaint handling was not up to mark.3) Supply in certa in area i s very i r regu lar and route agents are not covering full routes) 4 ) P o o r s i g n a g e a n d d i s p l a y i s m a k i n g t h e r o u t e s w e e k f o r t h e s a l e o f Pepsi.5 ) I n t e r p e r s o n a l r e l a t i o n s h i p w i t h t h e c o m p a n y o f f i c i a l s a n d t h e r o u t e agent is not satisfactory.OPPORTUNITY: 1) It is observed that in some newly establishing areas many new outlets are opening, Pepsi needs to concentrate on these new outlets and can gradually increase its sale in these area.2) Large number of mix outlets can be changed to Pepsi exclusive and coke exclusive to mix only by luring them good and efficient supply, glow sign and cooling equipments.THREATES: 1) Coke is the only nearest competitor and it is catching up in the market penetration through price skimming and other promotional scheme.2) Some local brands commonly known asKancha, Tip Top, Shineandthe launch of Catch soft drink product causing decrease in sale in some areas.PEST Analysis:The PEST analysis examines changes in a marketplace caused by Political, Economical, Social and Technological factors’: Political change, from one party to

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another in control- for example the rise in private healthcare and the privatizations under Conservative governments Political Analysis for PepsiCoNon-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of the regulations. There are potential fines set by the government on companies if they do not meet the standard of laws. The following are some of the factors that could cause PepsiCo company’s actual results to differ materially from the expected results described in their underlying company's forward statement are-

Changes in laws and regulations, including changes in the accounting standards, taxation requirements, and environmental laws in domestic or foreign jurisdictions. Changes in the non-alcoholic business environment. These include, without limitation, competitive product and the pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. Political conditions, especially in the international markets, including civil unrest, government changes and restrictions on the ability to transfer capital across borders.Their ability to penetrate the developing and emerging markets, which also depends on the economic and political conditions, and how well they are able to acquire or form strategic business alliances with local bottlers and make the necessary infrastructure enhancements to the production facilities, distribution networks, sales equipment and technology.E: Economic change, for example, a recession creating increased activity at the lower ends of the product price ranges. Rate of interest raises depressing business and causing redundancies and lower spending level.Economic Analysis for PepsiCo Last year the U.S. economy was the strong and nearly every part of it was growing and doing well. However, things changed. Most economists loosely define a recession as the two consecutive quarters of contraction, or negative GDP growth. On Monday 26, the government officially declared that the U.S. has been in recession since March. However, because of the aggressive action by the

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Federal Reserve and the Congress it will be short and mild. The economy will return to the sustained, positive growth in the first half of year .Future Outlooks

The Federal Reserve is doing all that it can help the economy to recover. They have cut the interest rate ten times in this year. The rate now lies at 40-year low of 2.1%. Lowering the interest rates will ultimately excite consumer demand in the economy. Companies will expand and increase use of debt because of the low borrowing rate. PepsiCo can borrow money for investing in some other product as the interest rates are low. It can use the borrowing on the research of new products or technology. As researching for new products would cost less the PepsiCo Company will sell its products for less and the people will spend as they would get cheap products from the PepsiCo.

Before the attacks on September year, the US was starting to seethe economy recover slightly and it is only just recently that they achieved economic levels. Consumers are now the resuming their normal habits, going to the malls, car shopping, and eating out at restaurant. However, many are still handling their money cautiously. They believe that with the lower inflation still to come, consumers will recover their confidence over the next year.

The non-alcoholic beverage industry has high sales in countries outside the U.S. According to the Standard and Poor's Industry surveys,” For major soft drink companies, there has been the economic improvement in the many major international markets, such as Japan, Brazil, and Germany. These markets will be continued to play a major role in the success and the stable growth for a majority of the non-alcoholic beverage industries: Social change involves changing attitudes and the lifestyles. The increasing number of women going out to work, for example, led to the need for the timesaving products for the home.Social Analysis for PepsiCo

Many U.S. citizens are practicing healthier the lifestyles. This has affected the non-alcoholic beverage industry in that many are switching to the bottled water and diet colas instead of beer and other alcoholic beverages. Also, time management has increased and is at the approximately 43% of all households. The need for the

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bottled waters another more convenient and healthy products are in important in the average day-to-day life.

Consumers from the ages of 37yr-55yr are also increasingly concerned with the nutrition. There is a large population of the age range known as the baby boomers. Since many are the reaching an older age in life they are becoming more concerned with the increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing demand overall and in the healthier beverages’: Technological change - creates opportunities for new products, the product improvements, and of course new marketing techniques- the Internet.Technological Analysis for PepsiCoSome factors that cause company's actual results to differ the materially from the expected results are as follows:The effectiveness of the company's advertising, marketing and promotional programs. The new technology of the internet and televisionWhich use special effects for advertising through media They make some products look attractive. This helps in the selling of the products. This advertising makes the product attractive. This technology is being used in the media to sell their products. Introduction of cans and plastic bottles have increased the sales for PepsiCo as these are easier to carry and you can bin them once they are used

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CHAPTER-IV

ANALYSIS AND TABULATION

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The below data was taken and analyzed from 50 samples

Q1) Does the soft drink company provide you with refrigeration facilities? 

TABLE 1

YES 38

NO 3

MIXED 6

OWN 3

CHART 1 REFRIDGERATION FACILITIES

56%

24%

16%

4%

YESNOMIXEDOWN

INTERPRETATION:

56 percent dealers are having refrigeration facilities provided by the company .company has to increase refrigeration facilities to tap untapped market

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Q2) Dose the company provide you with mechanics for the repair and maintenance of fridges? 

TABLE 2

YES 28

NO 12

MIXED 8

OWN 2

CHART 2 FRIDGE MAINTAINCE

56%

24%

16%

4%

YESNOMIXEDOWN

INTERPRETATION: only 56 percent dealers are getting mechanics for repairs so company have to focus making availability of more technical persons

Q3) what are the conditions of bottles provided by the company?

TABLE 3

EXCELLENT 8

GOOD 15

NEUTRAL 11

BAD 09

WORSE 6

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CHART 3 conditions of bottles

16%

31%

22%

18%

12%

EXCELLENT GOODNEUTRAL BADWORSE

INTERPRETATION: about 47 percent dealers are happy with conditions of bottles .company has to take care of conditions of bottle to increase acceptance

Q4) If the bottles are broken in transit or in the shop due to natural causes or calamities then does the company bear the loss for you?

TABLE 4

YES 47

NO 3

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CHART 4 BOTTLE DAMAGES

94%

6%

YESNO

INTERPRETATION: dealers of 94 percent are happy with company replacement Facilities Company has to retain the same image

Q5) If the products have crossed their expiry dates then dose the company replace the products for you?

TABLE 5

YES 39

NO 11

CHART 5 expiry date

78%

22%

YESNO

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INTERPRETATION: about 78 percent dealers are satisfied with replacement of expiry products even some dealers having problems with stock left with them so company have to take necessary steps to reduce inventory levels at dealers

Q6) If yes then?

TABLE 6

Replace at reduced cost 16

Buy back 30

 Replace products free of charge 4

CHART 6

32%

60%

8%

Buy back Replace products free of charge

INTERPRETATION: about 60 percent dealers willing company to buy back products so company should consider it

Q7) how many dealers of the company are there in your area? 

TABLE 7

0-2 36

2-4 8

4-6 5

More than 6 1

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CHART 7 NO OF DEALERS

72%

16%

10%

2%

INTERPRETATION: ABOUT 72 percents dealers were satisfied with completion from other dealers so company should retain its position

Q8) when do you replenish your stock?

TABLE 8

WEEKLY 5FORTNIGHTLY 40MONTHLY 3QUATERLY 2

CHART 8 RELENISH PERIOD

10%

80%

6%4%

WEEKLYFORTNIGHTLYMONTHLY QUATERLY

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INTERPRETATION: ABOUT 80 percent dealers were replenishing stocks on fortnight basis so company has to focus on timely delivery of products Q9) Are you satisfied with your replenishment you get?

TABLE 9

Very Satisfied 6

 Satisfied 20 Neutral 12 Dissatisfied 10Very Dissatisfied 2

CHART 9 REPLENISH PERIOD

12%

40%

24%

20%

4%

Very Satisfied Satisfied Neutral DissatisfiedVery Dissatisfied

INTERPRETATION: about 52 percent are happy with replacement of stocks. Company has to increase sales force to make dealer more satisfied

Q10) Dose the company give you products you require or they follow their own rules and regulations.

TABLE 10

YES 38

NO 12

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CHART 10

76%

24%

YESNO

INTERPRETATION: dealers about 76 percent were satisfied with the products they demanded and company Norms Company has to retain its image in retaining dealers

Q11) How much time does it take to process an order? (Days)

TABLE 11

0-2 36

2-4 8

4-6 5

More than 6 1

CHART 11 ODER PROCESSING

72%

16%

10% 2%

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INTERPRETATION: dealers of about 72 percent are satisfied with oder processing period .company has to retain its position.

Q12) any schemes or discounts in bulk buying worth worthy?

TABLE 12

YES 43

NO 7

CHART 12 Discounts on bulk buying

86%

14%

YESNO

INTERPRETATION: about 86 percent of dealers are satisfied with discounts on bulk buying. The company has to retain this for sustainability

Q13) what are the payment conditions of the company.

TABLE 13

Pay in advance 5

 pay on arrival of the product 18

pay to the salesman later 27

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CHART 13 payment conditions

10%

36%54%

Pay in advance pay on arrival of the productpay to the salesman later

INTERPRETATION: about 54 percent dealers are willing to pay sales clerk later so the company should give some time for dealers for payment

Q14) Are you satisfied with the payment conditions?

TABLE 14

Very Satisfied 18

 Satisfied 22

 Neutral 5

 Dissatisfied 4

Very Dissatisfied 1

CHART 14

36%

44%

10%

8%

2%

Very Satisfied Satisfied Neutral DissatisfiedVery Dissatisfied

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INTERPRETATION: about 80 percent dealers were satisfied with payment conditions .company has to retain its image in dealers prospective

Q15) Are you satisfied with the margins given to you by the company?

TABLE 15

Very Satisfied 08

 Satisfied 12

 Neutral 25

 Dissatisfied 4

Very Dissatisfied 1

CHART 15

16%

24%

50%

8%

2%

Very Satisfied Satisfied Neutral DissatisfiedVery Dissatisfied

INTERPRETATION: about 50 percent dealers are neutral in margin satisfaction so company has to necessary steps to increase a little margin to dealers

Q16) According to you who factor plays a major role in achieving sales for Pepsi. (Rank 1-7)

TABLE 16

Brand name 13

price 10

Availability 15

loyalty 02

Quality 10

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CHART 16 roles in achieving sales

26%

20%30%

4%

20%

Brand namepriceAvailability loyaltyQuality

INTERPRETATION: about 30 percent and 24 percent dealers feel availability of product in every region and brand name played a key role in achieving sales

Q17) what kind of promotional activities will affect sales mostly? 

TABLE 17

 Free bottle scheme

18

 discount crates 14

 prizes 2

 coupons 16

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CHART 17 promotional activities

36%

28%

4%

32% Free bottle scheme discount crates prizes coupons

INTERPRETATION: about 36 percent of dealers prefer free bottle scheme rather than prizes so company focus on this incentive to increase sales

Q18. You will always buy carbonated drinks as your first choice and fruits drinks as next. ?

TABLE 18

yes 34

no 16

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CHART 18 carbonated drinks v/s fruits drinks

68%

32%

yesno

INTERPRETATION: about 68 percent dealers prefer carbonated Pepsi drinks over fruit

based drinks so company should retain image in carbonated segment and should introduce

more products to tap fruit based segment

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CHAPTER-V

FINDINGS

SUGGESTIONS

CONCLUSIONS

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FINDINGS:

1) The numbers of PEPSI outlets is more than the numbers of competitor’s outlets at Visakhapatnam that results in increase in sale of PEPSI products.

2) In the city like Visakhapatnam, PEPSI products are reaching to every corner where not a single bottle of PEPSI can be seen.

3) All the areas in Visakhapatnam, almost the retailers are satisfied with the distribution network of the PEPSI product.

4) Most of the retailers want glow sign and chilling equipments, which they are asking from long time.

5) In cola segment COCA-COLA is main competitor of PEPSI, in orange segment MIRINDA is the main competitor of FANTA, in lime segment7UP and MOUNTAIN DEW is the main competitor of SPRITE, in juice (mango) segment SLICE is main competitor of MAAZA.

6) Retailers are asking for the incentives and sales promotional schemes.

7) Some retailers stops selling PEPSI products because they are not satisfied with the company, where COCA-COLA fulfill some of their demand and got the opportunity to make exclusive counter for the soft drinks.

8) The young generation of people likes most PEPSI, 7UP and M.DEW while women, children and older people like SLICE and MIRIND

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SUGGESTIONS:

→An inspection officer should be recruited who perform surprise inspection of the market and find out the problems.→ The vehicles of the agency should be inspected so the delivery should be maintained.→after sales service has to be improved →incentives should provide based on sale.→Check the whole sellers who are selling lower price than agency.→Agency should be more honest in providing benefits to retailers.→Salary of sales force should increase so they may not do fraud with retailers to earn more.

CONCLUSIONS:

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

The retailer’s satisfaction is medium..

No provision for regular replacement of damage of bottles.

Many complains of retailers does not listen by the company.

Many retailers want monopoly but company does not provide.

Dealers are happy with Pepsi products. They got the products by the

company at the time due to good distribution channel

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Reference Books:

BIBLIOGRAPHY:

Philip Kotler (2002), “Marketing management” Prentice Hall of India,

New Delhi, Eleventh Edition.

Kotler and Armstrong (2001), “Principles of marketing” Prentice Hall of

India, New Delhi.

Gupta and Rajan Nair (2002),”Marketing Management” Sultan Chand

& Sons, New Delhi, Seventh Edition.

Memoria and joshi (1987), “Principles and practice of marketing” Mc

Graw Hill Company, Ryerson, Eighth Edition.

C.R. Kothari (2003), “Research methodology” Wishwa Prakashan,

Mumbai.

Web site:

http://www.pepsi.com

http://www.tropicana.com

http://www.pepsicoindia.com

www.google.com

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ANNEXTURE

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Questionnaire on Dealer’s satisfaction

Name of the shop / outlet:

Address /location:

Type of outlet:

Supermarket Restaurant

Pan shop others

Retail/Grocery store

The quantity you usually order:

Q1) Does the soft drink company provide you with refrigeration facilities?

Yes No own mixed

Q2) Dose the company provide you with mechanics for the repair and maintenance of fridges?

Yes No own mixed

Q3) what are the conditions of bottles provided by the company?

Excellent Good Neutral Bad Worse

Q4) If the bottles are broken in transit or in the shop due to natural causes or calamities then does the company bear the loss for you?

Yes No

Q5) if the products have crossed their expiry dates then dose the company replace the products for you?

Yes No

Q6) if yes then

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Replace at your own cost Buy Back Replace products free of charge

Q7) how many dealers of the company are there in your area?

0-2 2-4 4-6 more than 6

Q8) When do you replenish your stock?

Weekly Fortnightly Monthly Quarterly

Q9) Are you satisfied with your replenishment you get?

Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

Q10) Dose the company give you products you require or they follow their own rules and regulations.

Yes No

Q11) How much time does it take to process an order? (Days)

0-2 2-4 4-6 more than 6

Q12) any schemes or discounts in bulk buying?

Yes No

Q13) what are the payment conditions of the company?

Pay in advance pay on arrival of the product pay to the salesman later

Q14) Are you satisfied with the payment conditions?

Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

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Q16) Are you satisfied with the margins given to you by the company?

Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

Q17) According to you who factor plays a major role in achieving sales for Pepsi? (Rank 1-7)

Brand Name

Price

Availability

Loyalty

Quality

Packaging

Q17) what kind of promotional activities will affect sales mostly?

Free bottle scheme discount crates prizes coupons

Q18) you will always buy carbonated drinks as your first choice and fruits drinks as next.

Yes No

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