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A PROJECT REPORTON
MARKET SHARE OF PEPSI IN DEHRADUN
Submitted in partial fulfillment of the
requirement for the award
Of degree
Of
Master of Business AdministrationOf
(Sikkim Manipal University)
Session: 2011-2013
SUPERVISED BY: SUBIMITTED BY:
MR. AJAY CHAUHAN ANKIT SHARMA
FACULTY OF MANAGEMENT STUDIES
Graphic Era University,Dehradun
STUDENT DECLARATION
I Ankit Sharma of Class MBA (Marketing) of “Graphic Era University” hereby declare that the report entitled-
“MARKET SHARE OF PEPSI IN DEHRADUN”is an original work and the same has not been submitted to any other institute for the award of any other degree.
Signature of Candidates:
Ankit Sharma
CERTIFICATE BY GUIDE
I have the pleasure in certifying MR/MS __________________________________ are the students of Graphic Era University of the Master’s of Business Administration (MBA).Their university Roll No ________________________.
They have completed their project work title as “ ____________________________________________” under my guidance.
I certify that this is their original effort and has not been copied from any other source. This project has not also been submitted in any other university for the purpose of award of any degree.
This project fulfills the requirement of the curriculum prescribed by the Graphic Era University, Dehradun for the said course.
I recommend this project work for evaluation and consideration for the award of degree to the student.
Signature: Name of the Guide:
ACKNOWLEDGEMENT
I would like to thank Mr. Amit Kumar, Marketing Manager (MARKET SHARE OF PEPSI IN DEHRADUN) who allowed me to do this project in Max life insurance successfully.
I would like to express my gratitude towards Mr. Ajay Chauhan faculty of
Management for their kind co-operation and encouragement which help
me in completion of this project.
My parents need special mentions here for their constant support and love
in my life. I also thank my friends and well wishers, who have provided
their whole hearted support to me in this exercise. I believe that this
Endeavor has prepared me for taking up new challenging
opportunities in future.
DATED: RESEARCHER:
Index
Name of contents Page No.
Introduction ………………………… 1-2Preface……………………………… 3-4Project proposal sheet………………… 5-6Student declaration……………………… 7Acknowledgement ……………………… 8-9Pepsi bottling plant Bazpur ……………… 10-11Different flavors of Pepsi ……………… 12Department in PepsiCo ………………………..... 13Organization structure ………………………… 14Channels of distributor in PepsiCo …………… 15-16Pepsi Business ……………………………....` 17-18Origin of Pepsi ……………………………… 19-20Indian story of Pepsi …………………………. 21-28PepsiCo India ………………………………… 29Pepsi India journey ………………………… 30Pepsi India turnover ………………… 31-33Front line …………………………… 34Market unit …………………………… 35Business unit …………………………… 36Organization structure ………………… 37-39Franchise Organization structure ……… 40Support center …………………… 41Beverage consumption …………… 42Products …………………………… 43-44People ……………………………… 45-48The product mix of Pepsi …………… 49-50Pepsi language ……………………… 51-52Objective …………………………… 53-55Market concepts ………………….... 56-59Research Methodology …………… 60-62
S W O T analysis …………………… 63Limitation …………………………… 64-66My findings ………………………… 67-69Questionnaire ……………………… 70-71My suggestion ……………………. 72-74Conclusion ………………………… 75-76Bibliography …………………………… 77-78
INTRODUCTION
This project report is prepared for the submission to the “Uttarakhand Technical University Dehradun”This project was prepared during the summer training conducted in consecutive six week in Varun Beverages Ltd. It was based on theoretical/practical knowledge gained by the survey.
The theme of the survey is the measurement of market share of Pepsi in Dehradun Market.
The soft drink industry is sure to enter a booming phase in near future and the drinks will be available anywhere. To dominate the market share. Proper strategy should be formulated, and for this a pulse of the market should be taken consistently, since there is no independent market research agency that tracks retail sales, so from time to time research projects are undertaken and this project was a endeavor in that direction previously there was no competition in the Indian soft drinks market, but will all these companies coming in the Indian market, a huge competition was taken place with high voltage advertisement.
The industry is in the midst of mature phase and his distribution network dominates keeps on shifting from company to another. But it is almost a duopoly market. In which players are PEPSICO INDIA HOLDING PVT LTD. and COCA-COLA (INDIA) LTD.
Preface
There is more than one factor at work, which can ensure the true
compaction of project report it is not the idea held on certain topic that
matter but it is a complete psychological process and there for requires
and in depth knowledge of the process of a project.
The project includes an overview of Soft Drink Company. Pepsi
Language Channel of distribution research methodology analysis and
outlet interview. I have thoroughly scientifically discussed all these
topics.
The various and varied aspect of the problem has been logically discuss
and systematically presented in a simple language, event the minute
problem have been highlighted.
At certain places alternative solution of the problem have also been
made to widen we does horizon. In order to facilitate recapitulation and
better grasp of the project, the assignment has been categorized as
theoretical and practical assignment.
PROJECT PROPOSAL SHEET
PROJECT TITLE:-
“COLD STOCK SHARE OF PEPSI IN DEHRADUN MARKET”
NAME OF ORGANIZAYION: - PEPSICO INDIA HOLDING LTD.
NAME OF STUDENT: - ARVIND KUSHWAHA
INCHARGE OF PROJECT: - MR. AVNEESH CHATURVEDI
FACULTY GUIDE: - MR.KARAN SINGH KHATI
PROJECT DURATION: - 1st JUly-15TH AUGUST
RESEARCH AREA: - DEHRADUN
METHODOLOGY APPLIED: - PERSONAL INTERVIWEW WITH OUTLET
PEPSI BOTTLING PLANT DEHRADUN
An India venture of the Pepsi co Inc United States opened its bottling plant at Dehradun Distt. - Dehradun in Uttarakhand in year 1997 and bottling started from the 5 May 1998.
The plant of PepsiCo India Holding (P) Ltd. At Dehradun has effective manpower of 122 that includes both line and authorities.
The bottling capacity of India Holding (P) Ltd. at Dehradun plant is 1,000 bottles per minute everyday. There are about 60,000 cases of bottles, which are kept for bottling purpose.
The achievement of the plants includes international Quality Award (IQA) for house keeping.
DIFFERENT FLAVOURS OF PEPSI
In the plant of PepsiCo India holding (P) Ltd. There are produced different flavors in 200ml, 300ml, 1 Ltr, 1.5 Ltr.-6b, pet 18 Ltr-6b quantities.
That flavors are as-
PEPSI
MIRINDA LEMON
MIRINDA ORANGE
7UP
LEHAR SODA
AQUAFINA
DIET PEPSI
MOUNTAIN DEW
DEPARTMINT IN
PEPSI CO INDIA HOLDING (PVT) LTD
HUMAN RESOURCES
MARKETING
MANUFACTURING
PURCHASE
ACCOUNTS
QUALITY CONTROL
SHIPPING
ORGNISATIONAL STRUCTURE
UNIT MANAGER
P.A.M. T.D.M. U.H.R.M.
PLANT MANAGER
HUMAN RESOURCES
MARKETING
MANUFECTURING
PURCHASE
ACCOUNT
SHIPPING
U.F.M.
QUALITY CONTROL
UNIT MANAGER
P.A.M. T.D.M. U.H.R.M.
PLANT MANAGER
HUMAN RESOURCES
MARKETING
MANUFECTURING
PURCHASE
ACCOUNT
SHIPPING
U.F.M.
QUALITY CONTROL
ORIGIN OF PEPSI
In North Carolina, Mr. Caleb Braham who was a pharmacist by
profession invented a new beverage in year 1889, which was called
“Brads Drinks”. This brads drinks was later called ‘PEPSI COLA’.
Pepsi cola trademark was registered in 1903. Braham believed
marketing would be the key to Pepsi cola. He spent $1900 on advertising
when he sold only 40,000 liters of syrup.
In 1905, Braham build Pepsi’s first bottling plant. Three more
plants followed soon and in 1907. He sold 50,000 liters per year. In
1909, he hired a new advertising agency.
Troubles started at the end of the world war 1st when Braham
overstocked sugar at high price which subsequently dipped to rock
bottom in1920, by 1922, the company was insolvent. Braham returns to
his pharmacy.
ROY MERARGEL, a well street broker stopped in and
reorganized in the company.
However the company was running a loss each year and with the
stock market crash in 1929.
In 1930, Pepsi started its operation with its head office in New
Ireland City, New York.
In 1931, the company went bankrupt a second time.
The very basic strategy used by Pepsi was the price
competitiveness i.e. Rs.5. per year 1965 marked the success story for
Pepsi Co. when it merged with Frito-lag to constitute Pepsi co
international with coming together of DON KENDALL and Herman
Lye.
PEPSICO INDIA HOLDING (P) LTD
Head quarter-Gorgon
Present C.E.O. of PepsiCo India-Mr. Rajeev Bakshi
Retirement age in Pepsico-65 years
Employees-3000
Plat-40
Owned-20
Franchised-23
THE PEPSI INDIA JOURNEY IS A SUCCESS STORY
We are only a 15-year-old company. In this short time frame we have come from now here to become the
3rd largest FMCG Company in India. Brand Pepsi is the 3rd largest overall brand in India. It is also the largest food and beverage brand.
Pepsi India markets three if the strongest brand in the world.
WE MAKE CSDs IN TWO VERITIES
Cola and Flavors
Cola and Pepsi Almost 150 countries 2.0 billion cases yearly
Orange-Mirinda 340 million cases yearly Orange is most popular flavor
Available in over 17 other flavor
Lemon-lime-7Up Over 125 countries Over 400 million cases yearly
PEPSI INDIA TURN OVER (RS. MM)
INCLUDING FOBO SALES WE ARE A +3000 CRORE COMPANIES
Distribution is critical
Right product
Right place
Right time
Everyday
Growth strategy
Emerging markets
Leading markets
Critical mass markets
Low share market
Local Growth strategy
Building infrastructure ahead of curve
Bottling capacities
Market equipment
Strengthening bottler network
Relationship
Best practice sharing
Training
Reach & penetration in Rural, suburban markets
Exploiting indirect distribution
Consumer focused marketing program
Events
Packaging
Discounts
Inverting the traditional pyramid Support our customer
Support our franchise bottlers
Support our employees
Focus on the front line
Employees who interface customers
Key to our daily success
Every other employee supports the front line
Each role matters
Each role matters to make PCI smoothly
Each has a clear line of sight to the customer
Each supports the work of serving the customer
FRONT – LINE – Serve the customer
Territory = group of customerFour main fronts – line position
Territory coordinator
Customer representation
Territory development manager
Account development representation
MARKET UNITS – Execute flawlessly
Market units = common geographical area
Territory coordinator
Customer representation
Account development representation
Plant manager
Marketing equipment manager
Unit manager
Territory development
manager
Market development
manager
Human resource
Finance
Market unit
Market unit
Market unit
manager
Market unit
Market unit
Business units – implement resource & support
Territory coordinator
Customer representation
Account development representation
Plant manager
Marketing equipment manager
Unit manager
Territory development
manager
Market development
manager
Human resource
Finance
Market unit
Market unit
Market unit
manager
Market unit
Market unit
ORGNIZATION STRUCTURE
Building the business, day by day Millions of transaction every day, each sale counts Each person plays an important role Excellence is a given
PRODUCTS
Definition of a consumer Pepsi drinkers Purchase product from our customer Pepsi plays attention to what they buy, where, when and how
much Anticipate consumers trends
PRODUCTS
Carbonated soft drink
International CSD industry-18.5 billion cases PBI-3.1 billion cases Pepsi cola 18% global CSD Regular CSDs are far more popular than Diet Three biggest segment of CSD industry-Cola, Orange, Lemon-
lime
Organization Structure
(1)Sales Works with customers to ensure they are satisfied
develops & communicates customers strategy organizes promotion schedule
(2)Finance Plans manager & reports finances
Plans & manages financial decisions Financial reporting Information technology
Lime lemon regular cola25% 45%
Orange15%
Other flavors 15%
3) Human Resources Develops employees skills and capabilities
Recruitment Compensation and benefits Training and development
4) Marketing Builds consumer and customer preference
Studies consumers, market trends, consumption data, consumption
Advertising and promotion
5) Operation Manages production, packing, distribution
Maintains plant and warehouse Enforces quality standards Maintains vehicles
6) Corporate Affairs Work with government media, external agencies
Legal / Regulatory matters Approvals Public / media images
Franchise organization structure
Franchise bottlers
Market unit
OperationSales MarketingHuman resource
Market unit
Franchise director
franchise manager
Market unit
Market unit
Finance Corporate
affairs
Business unit
Business unit
BUGM Business unit
Business unit
Support Center –
Located in purchase, New York Provides resources, leadership, guidance
Territory coordinator
Customer representation
Account development representation
Plant manager
Marketing equipment manager
Unit manager
Territory development
manager
Market development
manager
Human resource
Finance
Market unit
Market unit
Market unit
manager
Market unit
Market unit
OperationSales MarketingHuman resource
Corporate
affairs
Business unit
Business unit
BUGM Business unit
Business unit
Finance
BEVERAGE CONSUMPTION (Liter/capita)
PRODUCTS
PERFORMANCE AND GROWTH
Two type of growth: vertical & horizontal
Horizontal growth: gaining ground geographically
PERFORMANCE AND GROWTH
Vertical growth = growing per capita consumption
So that each person drinks more
servings.
Per Capita Consumption:
Number of beverage servings each person has per year in a certain
reason.
Huge opportunity on emerging markets.
Per capita consumptionFor carbonated soft drinks(8 oz. Severing)
Products
Merchandising & point of purchase Merchandising: Making our product look their best on the shelves. POP: Sings, Posters & Banners that advertising our products.
PEOPLE
Our vision
Our vision is to be a truly global company by continuing to build
a competitive and profitable worldwide refreshment beverage
business.
PBI’S Strategy
Focus on:
Building core brands
Developing resources according to market priorities
“Franchising” as our primary route to market
Building operating capabilities
The Pepsi team
Challenging and rewarding work
Strong leadership
Great Team
Quality products
Play to win
Our people
Career growth
Training opportunity
Today Is the first step
Welcome to Pepsi team
Winning at PBI
Strong global brands.
A growing list of strong markets.
A respected and admired partner to our customers.
Healthy financial returns and steady profit growth for our share
holders.
A great place for work.
WORKING FOR PEPSICO
Powerful brands
Market leaders in brands
20 of the team are either No. 1 or No. 2
Know and respected in every part of the world
Passion for growth
Drive growth through innovation
Satisfy ever changing consumer needs
Our focus on growth creates big challenges and financially.
Culture of shared principles
Pepsi has a unique and admirable culture a community of
talented people guided by shared principles. With our informal,
inclusive work environment, we make it easier to get things done,
and we take pride in doing things the right way.
Commitment to results
At PepsiCo, we like to win, we are committed to bring market
leaders and strengthening our go-to-market system all over to world
at the PepsiCo results are recognize and rewarded.
INDIAN STORY OF PEPSI
In 1977, a change in government at the center led to the exit of Coca-
cola, which proffered to quite rather to dilute its equity to 40% in
compliance with the foreign Exchange regulation Act (FERA).
The banging 1980’s saw the birth of another cola drink “Thumps
up”. The Gold Spot people launched it in 1978-79, as “Refreshing Cola” in
1978; Parle led the Indian soft-drinks market (share 33%) with the GOLD
SPOT and LIMCA brands, in 1978, and pure drinks share came down
to21% as a result of growing popularity of Limca and Thumps Up. At the
same time the threat to the Indian soft drinks market was that of fruit
drinks.
In 1988 fruit drinks market was valued at Rs.40 crores and grew at
the rate of 20%, in early 1985, the government rejected the proposal R.P.
Goenka Group. This involved the export the fruit juice concentrates from
Punjab in return for the import of cola-concentrates. The deal offered was
3:1 export-import ratio in return for being allowed to market Pepsi in India.
The Rs.22 crores Pepsi co project packaged was the second did by
the U.S. headquarters MNC to enter India. Pepsi co would have an equity
holding of 39%, Punjab Agro Industries Corporation (PAIC) 20% and
Voltas 24%. The balanced to be financed privately from loans, a project
approval board was finally set in February 1988. Pepsi’s share which has
been originally just under 40% was whittled to about 35% and PAIC’s
share was hiked to 40% these were mainly the issue in which Coke had left
India in1977. Thus Pepsi not only accepted the 1977 conditions but also
went much further. Now the Pepsi project had captured the farmer’s
imagination.
There was victory for Pepsi who after more then 5 years of
acrimonious battle was launched in June 1990 selectively in Rajasthan,
Punjab, Uttar-Pradesh and south as “LEHER-PEPSI” in 1991.Saw a major
launch of 7UP and MIRINDA in India, which was warmly received by
Indian customers and consumer.
1993 was a new beginning for fountain Pepsi (PMX).
In 1994, Pepsi achieved he no.1 position in Cola branch in India in
1996 Mirinda attained No-1 position in orange beverages category.
May 1998 saw a major launch of Mirinda lemon in India 70% of the
total sales came from established markets of NORTH AMERICA.
Pepsi has sin major branch namely Pepsi; Diet Pepsi; Mountain Dew;
7Up;Slice and Mirinda (Orange and Lemon).
Mr. Ramesh Vengal was the first managing director who was here till
1992 Mr. Suman Sinha the current president took over from him after a long
inning with HINDUSTAN LEVER LTD. During these years the beverages
business has grown rapidly from 3-million cases to 60 million cases and is
praised for countrywide leadership.
PEPSI selfs upwards of 160 million cases annually through 7,
50,000 retail outlets across the country. It generates annuals sales of
approximately Rs.2500 crores which includes exports of Rs.300 crore,
plus a growing snack foods business in Frito lay(Sales Rs.300 crores)
and a presence in the nascent juice market with TRPICANA (sales, Rs
50 Crore).
Franchise now sees the company not just as advisor as caring
weight of experience. Company system and franchise system can now be
properly aligned to meet required objective.
On expanding reach and availability 80% of all cold drinks are
consumed at the point of purchase (POP) rather than at home. The
fountain initiative has paid off higher of countrywide and they offer
consumers a whole new way experience soft drink also expending reach
and availability.
Coke tied up with Indian oil to setup dispensing units at petrol
pumps. Pepsi followed suit by striking a deal with Bharat petroleum.
Pepsi has mainly focused on brand Pepsi their strategy has been to
keep pace with the market growth rate in non colas but to emerge as the
definite cola they have put their might behind brand Pepsi as the flagship
brand.
In 1987 Pepsi ranked 29 in the fortune list of 500 largest industrial
corporations in the U.S. Coca cola. Was way down at 54, while Pepsi
Co. improved it’s position from 34 in 1986, Coca cola tumbled to 38
after massive public out cry, the company had to reintroduce the original
coke classic.
Pepsi has so far made in roads 151 countries including the much-
publicized ventures in the Soviet Union and china patience in PepsiCo’s
long suit. At the base of every beverage business lays the all important
secret formula of success “concentrate”. In India concentrate is prepared
by Pepsi food Ltd. Representative of Pepsi cola international.
They come, they spent, and they conquered the size of their
combined business as up to more than 5500crore. The equity investment
put in it tots to a humongous $1347million. Yet, almost 10 years after
Pepsi and coca cola Company entered India, both are yet to turn a profit.
There accumulated losses are estimated to be over Rs.800crore.
In a bid to corner a large market share invariably, either Pepsi or
coke ends up raising the stakes to a point where the math simply does
not adds up. Just that the two cola giants have been in a unseemly hurry
to grow the Indian market at same time, deny each other and advantage
irrespective to whether it makes economical sense.” in the mid 90’s
breakeven was pegged at 40 million faces.” Today’s both player together
do 150 million cases, but breakeven is still elusive.
The battle spilled into almost every area of operations. In early
1999, trade discounts were also unlashed. If the industry norm was
around 3-4 bottles free with every case, the cola majors begin to offer 6-
7 bottles. In 2000, particularly in the month coke went berserk, giving
50% discount.
Both cola warriors targeted clutch of key account about 6-7% of
total retail base primarily restaurant, movie house and hotels.
In many case the owner would play one against the other and drive a
hard bargain. In many cases the cola companies paid close to between rs.
100 per case of expected off take at advance to secure the monopoly
over the key account.
The gross margin on a case returnable glass bottle was just rs. 40 in
India, the single-serve PET bottles were simply not cost effective.
Aluminum cans to suffer to same problem.
Now every year both company had to invest fresh glass capacity
and creates. Back of the envelop calculations suggest that to put an
additional million bottles in the market required close to Rs. 40crore
investment in glass and crates, and glass bottles had to be replaced every
four years after they had done 40 cycles, during which time depreciation
had been charged.
Tilter Cola Company begins to concentrate to the urban centers. As
soon as they posed in to the winter land, the first signs of problems
surface. In a state Tamilnadu, the off take per thousand people barely
0.9. As results, when Pepsi or coke truck went into interior markets,
glass simply would not come back fast, either consumption was low or
the volumes were being split between the tow competitors.
As a market leader Pepsi could have played the role of expanding
the market. But that would have been completely out of character for the
company. “It is a bit like asking Brazilian soccer team to adopt germen
style total football”. Across global market Pepsi has always reveled in
grabbing share away from coke. But in India it fines itself in a peculiar
position. It is the Numerous Undo brand, out selling both coke and
thumps up put together. That’s helped Pepsi’s Indian team to build quite
a reputation
Pepsi has managed to constantly find ways to connect with youth.
So it coke is the universal drink which cuts across age groups, Pepsi is
the icon of the real cola quaffers. Young people between the ages of 15-
29.
BATTEL ON THE WATER - FRONT
Water opens up a new battle – front for the competing Cola giants.
But given current pricing Pepsi is trying to shield.
Aquafina from the discounting war. But that’s not helping garner
share. Here’s the real threat in most Asian markets, with the exception of
the Philippines, water is a far bigger business than carbonated soft
drinks. Besides, waters can very easily ride on the seasonal stew in the
carbonated soft drink business.
Both coke Kenley and Pepsi’s Aquafina have to contend with
Ramesh Chauhan’s Bisleri which is discounting heavily to build
volumes in the low margin business. Aquafina has described to shield
itself from the gutter fight by adopting a premium tack and not offering
discounts. The fight has all the marketing of cola was as coke and Pepsi
have shown, there are no fear winners in such a battle, only losers.
THE PRODUCT MIX OF PEPSI
BOTTLES:-
PEPSI (Black) 200ml…300ml…500ml…1000ml…1500ml…2000ml.
MERINDA (Orange)200ml…300ml…500ml…1000ml…1500ml…2000ml.
MOUNTAION DEW 200ml…300ml…500ml…1000ml…1500ml…2000ml.
7UP 200ml…300ml…500ml…1000ml…1500ml…2000ml.
SLICE (Mango) 250ml…500ml…1000ml.
LEHAR (Soda) 300ml…500ml.
AQUAFINA (Water) 500ml…1000ml
CANS:-
MERINDA (Orange)330ml
PEPSI (Black) 330ml.
MOUNTAIN DEW 330ml.
FOUNTAIN PEPSI:-
PEPSI 300ml.
MERINDA (Orange)300ml.
7UP 300ml.
PEPSI LANGUAGE
A DISTRICT: Is a geographical area which includes a number of
outlets.
A ROUTE: Is a set of outlets called on by a salesman per day.
CALL FREQUENCY: Is a number of times, an outlet is scheduled
to be called on by a salesman in a week.
A CALL: Is the communication which takes place between the
seller the buyer.
SELLING: The active attempt of a salesman to sell the consumer.
LODING: Is the keeping of product on the truck at the plant and
warehouse.
DELIVERY: Physically delivered of the product to the buyer
MERCHANDISING: Activity is an outlet carried out to make the
product more visible, accessible and convenient to the consumer.
PRIMARY DISPLAY: Is the main beverages usually in the store
self.
SECONDARY DISPLAY: Is an additional opportunity to the
display Pepsi product and increase impulse sales.
FLOOR DISPLAY: Creates staked on the floor to improve
visibility and accessibility of the product.
PROMOTIONAL DISPLAY: Is specially done to draw attention
to new packs, product promotion and special offers done in a shop
window product arranged attractively using POP material.
POP: Pointing of purchase (POP) is marketing material used in
outlet of bring additional attention to the products.
OBJECTIVE OF STUDY
The objective of study of this survey in Dehradun, for fulfilling this
objective I have undergone with the following aspect:
1. To find sale of Pepsi with the other product in different outlets
2. To plan & execute a share gain drive in Dehradun.
3. To find out the growth and potent ional of soft drink (PEPSI) in
different outlets.
4. To acquiring the following about the position of Pepsi product in
relation to competitors product.
5. To study market share of PEPSI in Dehradun.
6. To study the different aspects of distribution channel adopted by
Pepsi.
7. To study the relationship between cold stock and sales.
8. To find the availability of chilling equipments, ice chest, glow
sings, dealer board, paintings & racks of different soft drinks
companies & other requirements related to Pepsi.
9. To find out the problem faced by the outlet related to Pepsi.
10. To measure the effectiveness of this distribution satisfies the
outlets.
11. One of the main purposes of study is to provide the exposure
to the marketing student in order to face actual problem in future.
MARKET CONCEPTS
To understand what marketing means, we must first understand the
above concepts.
NEED: Are the basic requirements
WANTS: Need become wanting when they are directed to
specific objects that might satisfy the need.
DEMANDS: Are Wants for specific products backed by an
ability to pay.
PRODUCTS: Need satisfying entity.
Or
Everything’s that we come across in our daily life.
EXCHANGE: Is the process of obtaining a desired product from
someone by offering something in return.
TRANSACTION: Is trade of values between two or more parties.
MARKET: Is a place buyer and seller meet with each other.
MARKETING: Is an art of selling products.
Marketing arises from the exchange concepts to acquiring the products.
The whole marketing is based on the process of exchange.
Enlarge process involves a lot hard work. Seller must search for buyers,
identify their needs, deign, the products, store and delivers them. Such
activities as product development, research, communication,
distributing, pricing and services are core marketing activities. Thus it is
human activates taking place in relation to market. It is the actualization
of potent ional exchange for the purpose satisfies and wants.
Definition:-
“Marketing in a human activity directed at satisfying need and wants
through the process of exchange.”
The latest definition of Marketing:-
“Marketing is an organizational function and a set of process creating,
communicating and delivers value to customer relationship in ways that
benefit the organization and its stakeholders.”
Scope of Marketing:-
In Business
In non profit sector
In government sector
By social awareness group
In international sector
RESEARCH METHODOLOGY
Marketing research is the systematic & objective investigation analysis
of information to the identification & solution of any problem in the
field of description & analysis inputs necessary for effective working.
Marketing research may be of two types:
1. Desk Research
2. Field Research
1. DESK RESEARCH: --- It consists of all secondary data which are
collected from the company record, Govt. publication libraries,
survey or report of different agencies.
2. FIELD RESEARCH: --- It consists of all primary data which
are collected by following method.
Post Interviews
1. Telephone Interview
2. Personal Interview
3. Group Interview
METHODS OF DATA COLLECTIONS
Data was collected through structured questionnaire by the Pepsi
Co India Pvt. Ltd.
I have MADE the personal discussion with the various departments of
organization help me getting detailed information about my task. I have
gone through the market observation in which I did the extensive survey
on various outlets of different routes in Dehradun and collected the
information and data.
I have also collected the data through primary and secondary data.
PRIMARY DATA: ---
For the collection primary data, we have divided the whole city into
territories.
These are:-
1. Outlets of all city, restaurants, pan shop, juice corner.
2. Entire area of Dehradun.
SECONDARY DATA: ---
We collected it from various sources:-
1. Offline documents
2. From internet, landing papers and magazine:-
India Today, Times Of India, Economic Times, www.pepsico.com
SWOT ANALYSIS
S STRENGTHS
W WEAKNESS
O OPPORTUNITY
T THREATS
STRENGTHS:--
Strong brand name
Strong cold drink Company in India and U.S.A.
Glamorous, attractive and effectiveness local and national
advertisement company.
Strong distribution channel
Wide brand verity to face the competition and face serve the
masses
Attractive sales promotion schemes.
Excellent product design.
WEAKNESS:--
Company’s representatives have filled to convince retailers for
selling other brand of Pepsi.
Some retailers have not been aware of scheme.
Pepsi did not available according to demand.
Less grievance handling.
OPPORTUNITY:--
The per capital consumption in India will increase
Per capital is also increasing.
Rate of social is increasing.
The future of “FMCG’S” in India is very bright.
CHANNELS OF DISTRIBUTORS IN PEPSICO
INDIA HOLDING PVT. LTD.
In order to make its products available at the right place at the right
time in the market and at the right price, the sales department of the
company pays major attention towards controlling the channel of
distribution.
There are two ways of distribution, one as through Depot and other
is through the Agency.
Bottling Plant↓
_____________________________________________________ ↓ ↓Agency Depot
↓ ↓
Retailers Retailers
↓ ↓
Consumer Consumer
The product is distributed through the depot to the retailers and
after the consumer. The whole area is divided in to certain routes and
according to them there delivery vans, Tempos, Tata 207 DI and Truck
the distributes the products to the retailers.
There are no direct relation between distributor and its retailers.
The retailers are selected by the distributor on the other hand there is no
definite and fixed rules for the selection and appointment of retailers
from the side of distributors. Anyone like the tea stall, pan Bandar,
restaurant of any other shopkeeper can have the stall for the sale of soft
drinks and they are called retailers or outlets owners. They have to give
assurance to the concerned distributor for better sales and at the time of
taking delivery they have deposited the security amount that is charged
for the empty bottle with specified retailers purchasing price.
PEPSI BUSINESS
Pepsi company has worldwide operation in three fields:-
1. Non alcoholic Beverage
2. Snack Foods
3. Fruits Juices
PEPSI COMPANY↓
_______________________________________________↓ ↓ ↓
Non Alcoholic Beverage Snacks Foods Fruits Juices
Tropicana Lays
Pepsi Company’s India operations were established in 1988 as
franchisee based under Pepsi-Cola international in India Pepsi operates
as:
Pepsi Food ltd.
Pepsi Company India Holdings
Pepsi India marketing Company
Pepsi Cola is a world class company in “Low margin, High volume”
business which means sales of high volume of the product in the order to
be profitable and complete in the global market.
COMPANY OWNED BOTTLING OPERATION [COBO}
FRANCHISE OWNED BOTTILING OPERATION [FOBO]
LIMITATION
During research certain limitation came in many ways which are below:
Time:-
Six weeks are not sufficient to cover the various aspect outlines in study
because the area of research is wide and span of time was very short. So
it was not possible to go deep in study. Meticulous and diligent effort
has been.
Money:-
Personal survey method is highly expensive method as well as time
consuming. Being a student it is not possible to spend much money
because institution is also deprives me from stipend.
Secrecy:-
It has to be mentioned in case of official data. So it is difficult to go
relevant data from the office.
Response:-
During survey I found some people (Outlets and distribution) refused in
answering first of all because they had no interest in such sort of work
what consumed their precious time or some more reason, but after being
conceived or mentioned by me they ready to give answer.
Transportation:-
In these areas the transportation was also interrupted in popular survey.
Finding:-
Eatery system helps Pepsi to increase their sales in Dehradun.
Most of the outlets like the offer of eatery & grocery, so that’s why
the market share of coke is more than the comparison of Pepsi.
I visited near about 50 outlets & I found the customers are not
satisfied with the performance of the distribution.
After analysis of survey I come to know that most of the pullets
associate themselves with Coke in comparison to coke.
The potential market of cold drinks in Dehradun is high but the
Pepsi loose their market due to distributor loose performance.
The survey shows that the coke is market leader & Pepsi is market
challenger.
The survey shows that the share of Pepsi is 44% & the rest share of
coke.
The survey shows that there is 20% cooling equipment of outlets,
while Pepsi has provided 40% cooling equipments to outlets &
coke provided 40% cooling equipments.
The demand of Dew & Mirinda (Pepsi) is more than the other
brand of Pepsi & it’s also competitors of coke’s Thumps up &
Limca.
Coke is giving more facilities like glow sign, dealer board &
painting, etc.
Max. Outlets are interested to sell cold drinks but they want to
have the facility of cooling equipment.
The late deliveries of the products to the outlets by the distributors
are also responsible the decrement market share of Pepsi.
After survey I came to know that the market strategy of the
company is not very in these areas.
And fixed rules for selection & appointment of retailers from the side of
distributors. Anyone like to tea stall, Pan Shop, restaurant of any other
shopkeeper can have the stall for the sale of soft drinks and they are
called retailers or outlets owners. They have to give assurance toy the
concerned distributors for better sales and the time of taking delivery
they have deposited the security amount is charged for the empty bottles
with specified retailer purchasing price.
QUESTIONNAIRES:-
To evaluate the market strength of Pepsi in the given market by the help of each distributor survey in near by region-
Q1. Name of the Distributor………………………………..
Q2. Name& address of outlet………………………………...
Q3. What is the total sale of outlet per day in respect of soft drink?
Q4. Sale of Pepsi per day?
Q5. What type of cooling equipment?
(a) Pepsi ( ) (b) coke ( ) (c) own ( )
Q6. What type of glow sign in & on the shop?
(a) Pepsi ( ) (b) coke ( )
Q7. Whether you are facing any problem in getting Pepsi/Coke?
(a) Yes ( ) (b) no ( )
Q8. Other facilities provided by the distributor?
(a) Yes ( ) (b) no ( )
Q9. Do you get soft drinks according your demand?
Q10. What type of response given by the distributor?
Q11. How many time CE visit in the shop in a month?
Q12. What type of demand made by the customer?
Q13.Are you satisfied with the behavior of vehicle staff& distributor?
(a) Yes ( ) (b) no ( )
Q14.which company provides you better facilities?
(a) Pepsi ( ) (b) coke ( ) (c) both of them
MY SUGGESTION:-
During my research with the retailers and shopkeepers I analysis the
behavior between dealer and distributor.
According to me company may be follow my these suggestions.
Every dealer plays an important role in distributing the product in
the market so selection of good distributor effects on the sales.
Every dealer must have good sales men because they help the
distributor for promoting the sales and behavior with the
customer must be good.
Supply of the product must be regular because in absence of our
products customers may purchase other brads (coca cola) so that
the sales will be effecting.
The customer executive must visit he retailers regularly, consult
their problem, and solve them.
Company provides full support and help to the customer
executive promoting the sales
Company must try to find new customers in their sales area
regularly.
Company must be provides new schemes and facilities to the
dealers and customers before any other company (coke).
The best dealer must be award by the company management for
his work and support in increasing the sales of the company
product because it also increases the confidence level of the
dealer.
Most of important thing is the distribution of the cooling
equipments on time after submitting the D.D by the dealer
because in absence of cooling equipment dealer go to the others.
Cooling equipment must be repair by the company on time.
Dealer board, glow sings, racks, provide each dealer.
Company must take care of small retailers like pan shop, tea stall
and some small eatery shops.
CONCLUSION
Real war between Pepsi & Coke
Every food companies have their competition. Pepsi main
competitor is Coco Cola Co. both have been sailing thirst quencher for
100 years. That is now global brands. Their bottles move through the
world’s most pervasion distribution network.
Coke is mainly a franchise driven operation with a company
supplying its soft drink concentrator to its soft bottlers around the world.
Coke management releases that a soft drink is a convenience as
well as an impulse product. According the company’s expertise lies in
consumers marketing.
Idea is to reduce the effect span as also coke will be experimenter
boachers and stadiums going out towards consumers the much as
possible.
Coke infrastructures plan include setting up new subsidiaries. It is
also considering a 35 Greenfield venture to sat-up a model plant in
western corridor most likely in Gujarat. This will have 4 product lines
with a
Capacity of 600 bottles per minute with a build in flexibility to about top
different of flavors and sizes. Another option for building capacity is to
bringing in bottlers from overseas to invest jointly in fresh capacity. The
company wants to a steam further and sat-up coco-cola institute a
training facility for bottlers.
BIBLIOGRAPHY
1. “PEPSI-COLA COMPANY, A DOMESTIC
HISTORICAL OUTLINE”. JAMES JONSAN, Chicago, IL. 1984.
2. “The other guy blinked how Pepsi won the cola
wars”. Roger Enrico. Jesse Kornbluth, bantam books, 1986.
3. “Pepsi-cola collectors club newsletters”, bob
Stoddard, editors, Covina, 1984 to 1988.
4. Marketing management 12th Edition-Philip
Kotler.
5. www.pepsicoindiaholding.com