pepsico graph chart 2

CHAPTER -I

INTRODUCTION

1.1 History of PepsiCo 1.2 SMV Beverage Ltd

DAYANANDA SAGAR BUSINESS SCHOOL

HISTORY OF PEPSICO

In the year 1898, one of Caleb’s formulation, known as brads drink, a combination of carbonated water, sugar vanilla, rare oils and cola nuts is renamed Pepsi cola On August 28.

1898. Pepsi cola receives its first logo. IN 1902, br adham applies for a trademark with the U.S. patent office Washington d.c

and forms the first Pepsi cola company. In 1905, Pepsi cola’s first bottling franchises are established in Charlotte and Durham,

competitive colas. In1941, the New York stock exchange trades Pepsi’s stock for the first time. in support of

the war effort, Pepsi bottle crown colour change to red white and blue. In 1960, young adults become the target consumers and Pepsis advertising keeps pace

with now it’s Pepsi, for those who think young. In 1970, Pepsi introduces the industry’s first two (2)-liters bottles. Pepsi is also the first

company to respond to consumer preference with light _ weight, recyclable, plastic bottles.

In 1984, Pepsi advertising takes a dramatic turn as Pepsi becomes _the choice of a new generation.

In 1991, pepsi introduces the first beverages bottles containing recycled polyethyleneterephy thalate (or pet) into the market places. The development marks the first time recycled plastic is used in direct contact with food in packaging.

In 1992, Pepsi cola and Lipton tea partnership is formed. Pepsi will distribute single serve Lipton original and Lipton brisk products.

In 1994, Pepsi -food international and Pepsi -cola international merge, creating the PepsiCo foods and Beverage Company.

In 1997, PepsiCo announces that it will spin off its restaurant division to form tricon global restaurant, inc. Including pizza hut, taco bell and kfc. It will be the largest restaurant company in the world in units and second largest in sales.

In 1998, Pepsi celebrates its 100 th anniversary. In 2006, PepsiCo acquired izze beverage company naked juice and stacks pita chip

company in the us, star food in Poland, and bluebird food in new Zeeland. it has expanded its presence in the non-carbonated drinks as well as snacks.

In 2006, the companies volume grew by 5.5%, compared with 2005 in 2007, the company plans to expand its market share through further acquisition and joint ventures


SMV BEVERAGE LTD

SMV BEVERAGE LTD, Adityapur, (Jamshedpur) a medium sector enterprise, located amidst beautiful surroundings, on the TATA Kandra road in the Adityapur Industrial Area, and producing PEPSI range of bottled soft drinks, viz. Pepsi, 7 Up, Miranda, Teem, Miranda Lemon, Miranda Apple and Lehar Slice and had become a household word in the Jharkhand State symbolizing achievement and advancement over the years. Steel City Beverages was established in 1967 and production commenced in March 1969. At the very outset the company installed state the art machines and technology, for the production and bottling of soft drinks. The bottling plant with a capacity of produce bottle 220 per minute is totally automatic and also had a modern state of the art inter mix machine for bringing forth the right blend of flavors. The company continuous to adopt and innovate technology in keeping with its policy of constant quality Improvements. With the advent Pepsi Food Limited for the production and sales of Pepsi range of soft drinks for Jharkhand. The company symbolizes self reliant in technology and ranked as the Best bottling company in the country in terms of Quality, Efficiency, Sale, Productivity and KRD. Till 1998, it was under the guidance of its Chairperson, Smt. Kusum Kamani and the able stewardship of its Managing Director, Shri. Nakul Kamani, the Co. has consistently bagged on numerous occasions, awards for Quality Assurance and Productivity, in 1993 it bagged top honors for being the best Quality conscious Plat amongst all Pepsi Bottling companies in India. In March 1999, Steel City Beverages Ltd. was taken over by Mr. S. K. Jaipuria from Mr. N.D. Kamani, along with Rushabh Marketing Ltd., a marketing unit. Mr. S.K. Jaipuria started running this plant very successfully. He was very much enthusiastic to increase the production and sale and to capture the whole market of Jharkhand. He established another plant in the name of SMV Beverages (Jsr) and increased the production from this new plant. The capacity of this new plant is 600 bottles per minute. Simultaneously, another marketing, company came up in the name of Hyderabad Marketing Company, Which is catering the need of whole of Jharkhand state. The Company’s highly sophisticated plant and quality control laboratory along with the dedication and enterprise of its employees is more than evenly matched by the management’s sense of understanding and compassion that has insured the company’s progress with every passing day. The company has a sale of more than 24 million bottles. It has maintained and nurtured a vast network of distribution for its product in Jharkhand and currently holds way over more than 50% of the states consumer soft drinks market with an estimated growth annual turnover of over Rs. 10 corers. The company is currently in pursuit of the coveted ISO9002, which it is confident of achieving and would hence become the first food product factory in India to do so.


Operation of enterprise and it encourages growth. It helps organization to reach it’s predetermined goal. In order to make the organizational structure more effectible one structure that can meet the demand of various factors namely environment, technology, size and people. SMV Beverages (Jsr) has duly considered these factors to build and efficient organization structure. As it is a medium scale enterprise and fully automatic, the manpower requirement is less. Hence, like any contemporary company, it has adopted a flat structure.

Following are the major features of the organizational structure of SMV Beverages Ltd.

Clear lines of authority.

Adequate delegation of authority.

Minimum Managerial skill level.

Unity of Directors.

Applications of ultimate responsibility.

Span of control.

Simplicity.

Flexibility.

Due consideration for top groups. SMV Beverages (Jsr) has a management board headed by its’ unit manger & Director Mr. P.S. Kumar. He is responsible for overall policies regarding managerial decisions and all the executive functions. He looks after all the functional departments like productions, Sales, account, personnel & purchase. Every department is headed by their respective managers who sends reports to the unit manager and are responsible to him in every sense of working. The Plant Manager is the head of the production department. He looks after production i.e. bottling process, inspection, and storage of new materials and maintenance of the plant as a whole. He also Heads the quality control department through quality control manager.

The controller of accounts heads the accounts department; under him there is a chief accountant. The purchase officer is in charge of all purchase activity of concern. PAC (Product availability Co-ordinator) is in charge of shipping department, coolers and PMX. Personnel department is headed by the personnel manager and looks after the function of administration, industrial relation, legal jobs, security welfare etc. The HMC Hyderabad Marketing Company In these two units, the Head of Sale and Marketing is in charge of all the marketing activities i.e. sales promotion, publicity, advertisement, market survey, and shipping. Though his main function is to have a control over the outlets distribution, Sales Manager is assisted by sales executive and sale supervisor.


1. PEPSI

2. PEPSI DIET

3. MIRINDA

4. 7 UP

5. MOUNTAIN DEW

6. SLICE

7. AQUAFINA

8. TROPICANA TWISTER

9. LEHAR SODA

10 NIMBOOZ

Water in the SMV BEVERAGE LTD Come from SITARAMPUR DAM and is stored in a reservoir. Before ensuring production, this raw water is treated in the water treatment plant.The process involved is known as coagulation process. Main chemicals, which are used, are ferrous Sulphate (FeSo4), calcium hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these chemicals in the treatment tank and becomes turbid. All impurities get settled at the base and remove the turbidity. Next it is sent to a sand filter to remove the turbidity. Then it is sent to the CARBON TANK where all the microorganism and chlorine is removed the water so obtained is completely free from any king of impurity and is ready to be used in further processing the maximum alkalinity is maintained until it is as much as 50 p.p.m.

ROLL CONVEYOR

This automatic operation machine takes the dirty empty bottles for washing. A person is required to put the empty bottles on the roller conveyor.

CLEANING {THE BOTTELE} IN UNIT

Used bottles returning from the market are stealthy. It is completely an outer process, which takes place within a machine. The machine has three compartments. Bottles for washing placed on conveyor come inside the machine and get successive treatment. Bottles are treated with 4% caustic soda in the frost compartment at the temperature, 100-115F. Next these are conveyed to the second compartment where bottles are again treated with 2% caustic soda at the temperature 120F. In the third compartment bottles are treated with sort ware. Time duration in the each compartment is 10 minutes.


CONVEYOR CHAIN

These are for the movement of sterilized empty, filled and crowned bottles.

LIGHT SCREEN

To check if any dirty part is unwashed in the sterilized bottles, which are coming through conveyor chain? This checking is again crowning.

SYRUP ROOM

Syrup room is situated on the first floor. Here syrup is prepared from filtered water, sugar and the concentrate. The room is well equipped with several tanks and filter press. The first one is heating tank is which syrup is actually prepared. Calculated amount of sugar along with concentrate and water is heated up to 850C. Thus a saturated solution is prepared. Next it is sent through a machine called filter press.

FILLER MACHINE

Washed empty bottles enter into this through conveyor chain and then they are filled with exact quantity of beverages.

CROWNER

The filled bottles are crowned with metallic caps to protect the purity of content. Then the bottles are given the batch no., year, etc. with the help of laser machine. Thus the whole process from washing to crowning is automatic. The filled bottles are lifted manually from conveyor and placed in crates. The bottling of beverages is carried out at a rate of 240 bottles/min. The new bottling unit has been established in order to pace the bottling process in the month of February. After establishing the now production unit the rate per minute raised to 600. Before it was 440 bottles per minute.


PLAN -O- GRAME


CHAPTER –II

DESIGN OF THE STUDY

2.1 Objective of the study

2.2 Scope of the study

2.3 Statement of the problem

2.4 Research Methodology of the study

2.5 Research Instrument

2.1 OBJECTIVE OF THE STUDY


Whatever we have learned in our courseware can only be more effective when we know how to apply them in real practice. Application of theoretical learning to the practical exposure leads to further learning. Here the main objective of internship is to apply the theories and skills learned, practically in an organization, and be open to learn more.

The objective behind doing is to get first Corporate exposure where we can apply our theoretical knowledge, learned in our courseware till now ,and get a closure look to the ‘Work Culture’and learn ‘Corporate Ethics’. This is supposed to be beneficial for us in future when we will start working with an organization, after completion of our course.

As an intern we can develop knowledge, competencies and real time corporate experience, which directly make an impact on setting our career goal.

Besides working on the project during .we also get opportunity to link with the employees of the organization. There are numerous things which helped us in improving our educational, professional and social network to set the things done in a right and systematic manner.We come to know how to make long term relation with others.

To know the consumer preferences.

To know the percentage share of PepsiCo cooling equipments.

To know the market share of Pepsi’s product.

To know the distribution methods adopted by the organization.

2.2Scope of the Study

To study in classroom for theoretical knowledge purpose is valuable but, it may be volatile. Therefore, it is necessary for practical assessment to make it in volatile. Attachment of student to any organization which provides student’s satisfaction at desired level. I got permission with project report to study on “RETAILERS AND CUSTOMERS OF SOFT DRINK” in PEPSICO. I will try my best and I hope my completed report will help the students in future.

2.3 Statement of the problem

The purpose of study is to being the gap between theoretical and practical concept. This study is carried out to analysis the “RETAILERS AND CUSTOMERS OF SOFT DRINK” at PEPSICO in DHANBAD and to understand the gap in distribution by the distributors at different level, area-wise, and according to stores also.

The other purpose of undertaken project is as follows

To obtained market scenario and other information’s of PEPSICO.


To study about the schemes and facilities provided to the retailers by PEPSICO. To know about the cooling equipments and promotional equipments provided by the

company to the retailers. To know about the product visibility and availability of the retailers. To what extent retailers are satisfied with delivery on promises.

2.4 Research Methodology of the Study

The different methodologies that I used to collect data from different places are given under:-

I have done market survey for collection of primary data. I used inter-net to collect the information of PepsiCo. I got secondary data from PepsiCo official. I got to know valuable information’s from shopkeepers. I gathered information from the customers.

2.6 RESEARCH INTRUMENT

Method of study I have divided my all study into phases which are :

Bibliography Interview method Observation method Questionnaire method


CHAPTER – III

PROFILE

3.1 Industrial Profile

3.2 Profile of the Organization

3.3 Organization Structure

3.4 Product Profile

3.5 Product Sample

3.6 Product Process


3.1 Industrial Profile

Type Public (NYSE: PEP)

Founded 1965

Headquarters New York, USA

Key people Indra Nooyi, Chairwoman, President & CEO

Industry Food and beverage

Products :

Pepsi

Tropicana Products

Gatorade

Lay's

Doritos

Frappuccino (for Starbucks)

Mountain Dew

Operating income $6.44 billion USD (2012)

Net income $5.64 billion USD (2012)

profit margin 16.06%

Employees 153,000(2012)

GROUP OF COMPANIES Frito-Lay North America

PepsiCo Beverages North America,

PepsiCo International

Quaker Foods North America


http://en.wikipedia.org/wiki/Profit_margin

http://en.wikipedia.org/wiki/2006

http://en.wikipedia.org/wiki/United_States_Dollar

http://en.wikipedia.org/wiki/Net_income


http://en.wikipedia.org/wiki/United_States_Dollar

http://en.wikipedia.org/wiki/Earnings_before_interest_and_taxes

http://en.wikipedia.org/wiki/Mountain_Dew

http://en.wikipedia.org/wiki/Starbucks

http://en.wikipedia.org/wiki/Frappuccino

http://en.wikipedia.org/wiki/Doritos

http://en.wikipedia.org/wiki/Lay's

http://en.wikipedia.org/wiki/Gatorade

http://en.wikipedia.org/wiki/Tropicana_Products

http://en.wikipedia.org/wiki/Pepsi

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Beverage

http://en.wikipedia.org/wiki/Food

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/Indra_Nooyi

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Purchase%2C_New_York


http://www.nyse.com/about/listed/lcddata.html?ticker=PEP

http://en.wikipedia.org/wiki/New_York_Stock_Exchange

http://en.wikipedia.org/wiki/Public

http://en.wikipedia.org/wiki/Category:Types_of_companies

http://en.wikipedia.org/wiki/Image:Pepsico-top_r1_c1.gif

SOFT DRINK INDUSTRY IN INDIA

India with a population of more than 1.1 billion is potentially one of the largest consumer

markets in the world after china. The consumer market is popularly known as the FMCG market

or the fast moving consumer goods market. Soft drinks come under this category. Soft drink is

basically purchased in India basically for two reasons namely to quench thirst and for

refreshment. The Indian economy currently is passing through a bullish phase with increasing

per capita income. Subsequently the lifestyle of the Indian consumer is also changing with

increased spending on entertainment, refreshment etc. that is why soft drink companies are

looking forward to India with great enthusiasm in the future to increase their revenue.

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

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

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

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

to publicize coca-cola. This extraordinary success of coca-cola can be attributed to the following

factors,

Absence of contemporary competitive brand.

The giant image of coca-cola in the western countries preceded their entry into the Indian

market, and

Indians at that time were very fond of foreign goods.

Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970. Before

this they had introduced a cola flavored drink called pepping which they had to withdrew in the

face of stiff competition from coca-cola. But the overtly conservative Indian government of that

time with special interest in safe guarding the interest of the Indian companies started insisting

that coca-cola should agree on the following points in order to continue in India. Coca-cola

decided to windup its operations in 1977 rather than bowing to the Indian government. The main

demands of the Indian government were,

Dilution of equity, as the government felt that lots of foreign currency was being wasted.


Manufacturing of the secret concentrate in India.

Disclosure of the chemical composition of the concentrate.

The exit of coca-cola left a large vacuum in the soft drink market. But this also accelerated the

growth of several Indian soft drinks. Many new soft drinks like frooti, jump-in etc were launched

in the form of tetra pack. However the bottling plants and the distribution networks of these

companies were not up to the mark and left much to be desired. It took these companies almost

one year to come up with new flavors like Campa cola, Rush etc. to survive in the industry.

However Parle, the pioneer in the soft drinks market blazed its way to national prominence with

their product Thumps Up bearing the slogan ‘happy days are here again’ which became a craze.

This particular slogan helped to win over the loyalists of coca-cola who were in a state of cola

shock or cola depression! Soon the soft drink industry started registering phenomenal growth

rates and all parley products namely Gold Spot, Limca and Thumps Up became the brand leaders

in their own segments. In spite of this the soft drink market had a huge untapped potential.

In 1990, coming of the multinational brand Pepsi and immediately started giving stiff

competition to Parley and Coke. The parent company of Pepsi was founded in 1890 at North

Carolina in USA. Its CEO is Roger Enrico. PepsiCo India Holdings Pvt. Ltd. in headquartered in

Gurgaon and its CEO is Ms. Indra Nyui. In India it has 34 bottling plants of which 8 are

company owned bottling outlets (COBO) and 26 are franchise owned bottling outlet (FOBO).

SMV Beverages is a franchise owned bottling outlet. Coca-cola reentered the Indian market in

1993 in collaborations with Parley India Ltd.


PEPSICO IN INDIA

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government- owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention." PepsiCo has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S. $1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 185,000 people including suppliers and distributors.

PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including Pepsi Foods Ltd, Frito - Lay India, and Tropicana Beverages Company. The company, through its subsidiaries manufactures, bottles, and exports fruit juices and carbonated beverages and packaged snacks such as Lays, Ruffles, Fritos, and Cheetos. PepsiCo India is based in Gurgaon, India.

PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister, Slice, and the new brand Nimbooz by 7up with real lemon juice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

In snacks segment - PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its


operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. PepsiCo India's agri-partnerships with farmers help farmers across the country grow and earn more.

PepsiCo's involvement in Indian agriculture stems from its vision of creating a cost-effective, localized agri-base in India by leveraging farmers’ access to world class agricultural practices. PepsiCo India worked with farmers and State Governments to improve agri sustainability, crop diversification and raise farmer incomes. PepsiCo helped transform the lives of thousands of farmers by helping them refine their farming techniques and raise farm productivity, and customized solutions to suit specific geographies and locations.

The most ambitious project is a joint program, launched in 1989, between PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana and Punjab Agro Industries Corporation (PAIC) in Chandigarh. The program focuses on evolving agricultural practices to help Punjab farmers produce internationally competitive products. Over the last five years, PepsiCo has also collaborated with the Thapar Institute of Technology to develop a high quality potato seed program.

PepsiCo was a pioneer in the concept of contract farming under which the company transfers agricultural best practices and technology and procures the produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acre research and demonstration farm in Punjab to conduct farm trials of new varieties of tomato, potato and other crops. The program, which includes seed production, has successfully evaluated the following crops,

Several varieties of basmati rice more than 200 varieties and hybrids of chilli 25 varieties and hybrids of corn More than 60 varieties of peanut More than 100 varieties and hybrids of tomato.


Additionally, the development of new tomato varieties has helped increase total annual production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have more than tripled from 16 tons to 54 tons per hectare.

Under the program, 6 high-qualities, high-yield potato varieties have also been introduced to Indian farmers. These new potato seeds have helped to increase farm income and enabled PepsiCo to procure world class chip-grade potatoes for its Frito Lay snacks division. The company has partnered with more than 10,000 farmers working in over 10,000 acres across Punjab, U.P., Karnataka, Jharkhand West Bengal, Kashmir and Maharashtra for the supply of potatoes. PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie up with the United Breweries Group. PepsiCo India’s technical team also implemented a high quality seed program to deliver early generation and disease free seeds to farmers.

Tropicana – Tropicana product is an American based company, and was founded in 1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by PepsiCo, Inc. Pepsi offers the wide variety of products to meet the choice and preference from fun for your items to the products choices that contribute to healthier life style.


KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS PVT.LTD.

PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani 'Nimbooz by 7Up'

PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus paani 'Nimbooz by 7Up'. The product, with real lemon juice, no fizz and no artificial flavors’, will be available in three packaging formats of 200 ml returnable glass bottles, 350 ml PET and 200 ml tetra packs, priced at INR 10, INR 15 and INR 10 respectively.

PepsiCo India Holdings Pvt. Ltd. to Launch Lemon Drink

PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the lemon drinks category and has plans to introduce a product under 7up brand ahead of the summer season. The new product would be less carbonated and is targeted at the mass market for on-the-move consumers.

Headquarter : New York, U.S.

Area served : Worldwide.

Industry type : Food and non alcoholic beverages.

Products : Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice, Tropicana products

Nimbooz juice, Aquafina, Fritos, Cheetos, and Lays.

Key person : Indra Krishnamurthy Nooyi (president), and (CEO).

3.2 PROFILE OF THE ORGANISATION


S.M.V. BEVERAGES Pvt. Ltd.

Introduction:

M/s SMV Beverages Pvt. Ltd., Jamshedpur is a franchise owned bottling plant (FOBO) is located on the Tata Kandara road in Adityapur Industrial Area at Jamshedpur and producing Pepsi range of bottled soft drinks, viz. Pepsi, Mrinda, 7up, Mountain Dew, Slice and Soda and it has now become a house hold word in the state of Jharkhand. The previous name of SMV was STEEL CITY BEVERAGES, but in March 1999 steel city beverage taken over by Mr. S. K. Jaipuria From Mr. N. K. Kamani along with Rushab Marketing company. He was very much enthusiastic to increase the production and sales and to nature the whole market of Jharkhand. He established another plant in the same name of SMV Beverages Pvt. Ltd. And increase the production from his new plant is 600 bottles per minute. Simultaneously a new market came in name of Hyderabad Marketing Company, which is creating the needs of whole Jharkhand state.

The company symbolizes self reliance in technology and ranked as the best bottling company of the country in terms of quality, efficiency, and productivity. Till 1998 it was under its chairperson Smt Kokum Kamani and the country has constantly bagged numerous awards in various occasions for quality assurance and productivity. In 1993 it bagged top honors for the best quality conscious plant among all the Pepsi bottling companies in India. Steel City Beverages Pvt. Ltd. Was established in the year 1967 and production commenced in March 1969. At the very start company installed state of art machines and technology for the production and bottling of soft drink. The bottling plant with a capacity of 220 bottles per minutes was totally automatic and also had a modern state of art intermix machine for bringing forth the right blend of flavors. The company constitutes to adopt innovative technology in keeping with its policy of constant entered into an agreement with Pepsi food limited for the production and sales of soft drinks for the people of Jharkhand. Right now there is only one bottling plant of Pepsi in Jharkhand and it cater the need of all the Pepsi products in Jharkhand. Entire state is divided into three territories Jamshedpur, Ranchi, and Dhanbad, and one territory development officer controls each territory.

ENVIRONMENT SCANNING:


The process by which organization monitors their relevant environment to identify opportunities and threats affecting their business are known as environment scanning.

The external environment in which S.M.V. Beverages Pvt. Ltd. exists consists of a bewildering variety of factors. These factors (may also be termed as influences) are events, trends, issues, and expectation of different interested groups. These factors are explained below.

Events are important and specific occurrences taking place in different environment sectors.

Trends are the general tendencies or the courses of action along which events takes place. Issues are the current concern that arises in response to events and trends. Expectations are the demands made by interested groups in the light of their concern for

issues.

By monitoring the environment though environmental scanning, the S.M.V. BEVERAGES Pvt. Ltd. consider s the impact of the different events, trends, issues, and expectation on its strategic management process. Since the environment facing organization is complex and its scanning is absolutely essential, strategist has to deal cautiously with the process of environmental scanning is collected systematically. Information related to markets and customers, the changes in legislation and regulations which have a direct impact on an organization’s activities, government policy statements pertaining to S.M.V. BEVERAGES Pvt. Ltd. business and industry and so on , could be collected continuously to monitor changes and take the relevant factors into account.

S.M.V. BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with specific

environmental issues from time to time. Such studies may be conducted, for instance, when

S.M.V. BEVERAGES Pvt. Ltd. has to undertake special projects, evaluate existing strategies, or

devise new strategies. Changes due to unforeseen development may also be investigated with

regard to their impact on the organization. Today S.M.V. Beverages Pvt. Ltd. stands as a proud

monument the great visionary its founder Late D.N. Kamani and strides forth towards progress

and prosperity for the fulfillment of the ideas of its revered founder.


ONE DAY IN PEPSI PLANT

In summer, when the mercury level crosses 40˚F we wish to have ice creams or cold drinks only. And it is as like a dream, if one gets the chance to visit the production unit of a cold drink plant, and also gets opportunity to have cold drinks without any limit and cost on such a hot day. Tuesday, 29th of May 2012 was one of the hottest days in Jamshedpur of this year’s summer and also a dream’s day for me when I got such an opportunity to visit the production unit of Pepsi of S.M.V. Beverages Pvt. Ltd. Jamshedpur.

Here I want to share my experience of visiting the production unit of pepsi and knowledge I gained after seeing the production processes of different brands of pepsi. But before going into the deep I would like to thank Mr. ABHISHEK KUMAR (M.E), who changed the hottest day into my dream’s day and also to all staffs of S.M.V. Beverages Pvt. Ltd. Jamshedpur for guiding me during this visit and sharing their vast knowledge and experience with me.

Pepsi production process:

Any cold drinks (soft drinks) generally contains

Water Sugar Flavors or fruit pulp Chemicals CO2 gas (in carbonated soft drinks)

The below four ingredients are added with the first ingredient i.e. water and cold drink is prepared. Here in S.M.V. Beverages Pvt. Ltd. Jamshedpur also the same ingredients are used to prepare pepsi and its’ other brands. All these ingredients are added at different stages by different processes. The diagram in the next page represents the flow or sequence of steps involved in S.M.V. Beverages Pvt. Ltd. Jamshedpur for manufacturing of pepsi products. Pepsi products are available in different SKUs (stock keeping units) or packs, e.g. glass bottle, pet bottle, metal can, tetra pack etc. the preparation of main liquid or drink is same but the machines and equipments used for filling in different SKUs are different.


DIRECROR(SMV BEVERAGE)

Logistic Dept.

Logistic Manager

Staff

Plant Mgmt.

Production Manger

Supervisors

Staff

Lab

Store

Personal Dept.

PersonalManager

Personal Officer

Staff

Security Dept.

Purchase Dept.

Purchase Manager

Supervisors

Staff

Store

PMTMI Scooler Dept.

Equipment Manager

Finance Dept.

Finance Manager

Account Executive

Accountant

3.3 ORGANISATION STRUCTURE OF SMV BEVERAGE ,JAMSHEDPUR


DIRECTER(SMV BEVERAGE)

HEAD OF SALES

Finance Department

Finance Manager

Account Executive

Accountant

Shipping Department

Supervisors

Staff

Marketing Development

Manager

Marketing Officer

Merchandiser

Territory Development

Manger

Account Development

coordinator

Sr. Customer Executive

Customer Executive

Salesman

Loaders

PERSONAL DEPARTMENT

ORGANIZATION CHART OF HYDERABAD MARKETING COMPANY


3.4 PRODUCT PROFILE

PEPSI DIET PEPSI MOUNTAIN DEW MIRINDA 7 UP SLICE MASALA SODA WHITE SODA NIMBOOZ AQUAFINA TROPICANA JUICE


3.5 PRODUCT SAMPLE


3.6 PRODUCT PROCESS

Pepsi production process:

Any cold drinks (soft drinks) generally contains

Water Sugar Flavors or fruit pulp Chemicals CO2 gas (in carbonated soft drinks)

The below four ingredients are added with the first ingredient i.e. water and cold drink is prepared. Here in S.M.V. Beverages Pvt. Ltd. Jamshedpur also the same ingredients are used to prepare Pepsi and its’ other brands. All these ingredients are added at different stages by different processes. The diagram in the next page represents the flow or sequence of steps involved in S.M.V. Beverages Pvt. Ltd. Jamshedpur for manufacturing of pepsi products. Pepsi products are available in different SKUs (stock keeping units) or packs, e.g. glass bottle, pet


bottle, metal can, tetra pack etc. the preparation of main liquid or drink is same but the machines and equipments used for filling in different SKUs are different.

Process flow diagram


During my visit to S.M.V. Beverages Pvt. Ltd. Jamshedpur, I saw

1. Water treatment plant, where water is purified.2. Bottle washing plant, where used glass bottles are washed3. Syrup room, where syrup is prepared from sugar.4. Bottle filling plant, where bottles are filled with the final product.5. Acid room, where custic soda is kept, which is used for cleaning the equipments and

pipelines after every batch of production.6. Yard for keeping empty bottles and ware houses for storing the filled bottles.

The brief introduction of each plants are given bellow.

1. Water treatment plant:

Water in S.M.V. Beverages Pvt. Ltd. Jamshedpur, is coming from the Sitarampur dam on the

Kharkai river. It is stored in a reservoir. This raw water is being treated in the water treatment


plant, before the production process starts. Coagulation process is used here for this purpose.

Main chemicals used are ferrous sulphate (FeSO4), calcium hydroxide (CaOH) and chlorine

(Cl). Initially water is treated with all these chemicals in the treatment tank and becomes turbid.

All the impurities get settled at the base and remove the turbidity. Then, it is sent to the carbon

tank where all the microorganisms and chlorines are removed. The water so obtained is

completely free from any kind of impurities and used in further processing. The maximum

alkalinity maintained until as much as 50 ppm.

1. Bottle washing plant:

Used bottles returning from the market are stealthy. Before filling these empty bottles with new

product, these bottles are passed through the bottle washing plant where these dirty bottles are

washed. It is completely an auto process which takes place within a machine called washer

machine. The machine has three compartments. Bottle for washing are placed on the conveyer

come inside the machine and get successive treatment. Bottles are treated with 4% caustic soda

in the first compartment at a temperature of 100-150˚ C. Next these are conveyed to the second

compartment, where bottles are again washed with hot water at a temperature of 80-100˚ C, in

the third compartment bottles are treated with cold or normal water at room temperature. Time

duration in each compartment is 10 minutes. Bottles are then sent through the inspection center,

where these are closely watched against white rays of light. Bottles containing any dust or other

unwanted things are removed from the line here.

2. Syrup room:

Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a specified

ratio into a closed container. The temperature of this prepared sugar remains between 80-100˚C.

This syrup contains some impurities as, sometimes there are some impurities presents in sugar,

so this syrup is filtered to remove all those contaminations. Before storing in syrup tanks this

syrup it is passed through the cooler where syrup temperature is reduced to 25-30˚C. This

temperature is maintained throughout the whole process. Here next flavors are added at a

specified quantity with the syrup used for preparation of pepsi or other brands.

3. Bottle filling plant:


Next, for preparation of carbonated soft drinks brands like pepsi, mirinda, 7UP, and mountain

dew, carbondioxide gas ( CO2) is mixed with this prepared solution. And for the brand like slice,

fruit pulp is added. Now the solution is ready for filling into the bottles. The washed empty

bottles are filled by automatic filler machine. This machine can fill 60 bottles in one minute.

After filling, crowns or caps are fitted on the filled bottles with the help of crowning machine.

Now these filled bottles are ladled and then sent for packing and storing in the godowns.

4. Acid room:

There are three tanks in this room. The first tank contains caustic soda, the 2nd tank contains hot

water and the third tank contains cold water. After finishing every batch of production the whole

production lines and containers/tanks are washed. And for this purpose, first of all caustic soda

is passed through the pipeline, next hot water and at the last cold water.

5. Yard for keeping empty bottles:

S.M.V. Beverages Pvt. Ltd. Jamshedpur has a large area in side its premises. A large part of

its open area is used for keeping the empty bottles.

7. Warehouse:

S.M.V. Beverages Pvt. Ltd. Jamshedpur has its own warehouse in side its premises for storing

the produced products. The produced products are sent to the customers from these warehouses.

For transferring the filled bottles inside the company fork-lifts are used.

PEPSICO PACKAGING PROCESS


PepsiCo is an industry leader in packaging- helping to promote and implement standards for sustainable packaging.

PepsiCo distribute the products in a variety of packages, each carefully designed to deliver convenience and appeal to the consumers while protecting the integrity of the products. The team of engineers and packaging suppliers are dedicated to finding preferable designs, and are working continuously towards improving the packaging performance while reducing the packaging footprint. PepsiCo are committed to bringing the environmental responsibilities to all areas of the business. PepsiCo are continuously improving the environmental programs and exploring solutions to environmental challenges through socially responsible, scientifically based and economically sound methods. Pepsi pass this commitment along to his suppliers and the consumers in an effort to do our part. The goals are to design and develop packaging systems that are environmentally responsible throughout their entire life cycle, inspire consumers who want to live more environmentally sustainable lives by promoting recycling, and partner with leading organizations to promote sustainable packaging and recycling practices. Through ongoing engagement with the packaging suppliers, we are working towards a position where all of our operations use the most environmentally suitable packaging available in their country of operation.

PepsiCo follow five principles of sustainable packaging design:

Reduce : Using less material in the packaging, to conserve natural resources.

Reuse : Increasing use of reusable packaging and increasing the amount of recycled material in the packaging.

Recycle : Designing packaging for recycling and developing biodegradable and compostable packaging solutions.

Remove : Eliminating environmentally sensitive materials and processes from the packaging.

Renew : Increasing use of renewable resources.


In an effort to meet his goals, PepsiCo have launched a global sustainable packaging policy and formed a Sustainable Packaging Council dedicated to:

Developing sustainable packaging strategies, goals, and targets Developing alternative packaging material technologies Supporting responsible disposal practices

Using Less Material in our Packaging

Although beverage containers are the most recycled consumer packaging in the United States – and they are designed for recycling, we continue to look for ways to reduce the amount of packaging used for the products. And we are achieving success. PepsiCo scientists and packaging specialists have led the way in reducing packaging materials through cost-effective changes in design and production, known in the industry as "light-weighting." Light-weighting reduces the amount of raw materials and energy used to make our packages and generates less waste after the products are enjoyed.

PepsiCo introduced new packaging for half-liter bottles of Lipton iced tea, Tropicana juice drinks, Aquafina Flavor Splash and Aquafina Alive that contain at least 20 percent less plastic than the original package. Aquafina has trimmed the amount of plastic used in its most popular bottle - the half-liter (16.9 oz) bottle - by 35 percent since 2002. This saves more than 50 million pounds of plastic annually. Aquafina's half-liter bottle weight has changed from 15 grams to 13.2 grams putting it among the lightest water bottles on the U.S. market.

Reducing and Recycling the Waste

At Frito-Lay, route sales employees return empty cartons from stores to our plants for reuse or

recycling and delivery boxes are used an average of six to seven times, saving nearly 5 million

trees a year and keeps 56 million pounds of cardboard away from landfills. For Frito-Lay's North

American and International products, Frito-Lay recycles packaging film waste from our

suppliers' sites for use in various other products (park benches, boards, etc). Our Quaker Oats

facility in Cupar, Scotland has reduced the amount of corrugate used by 30% over the past 5

years by moving to cases with open tops and reduced sides. Over the last five years, PepsiCo

U.K. has reduced the amount of plastic used to make Tropicana and Copella juice bottles by 18

percent. In Mexico, our snack business saves more than 100 million boxes per year by using

every box about seven times between the distribution center and point of sale. By recycling our

boxes up to seven times, we save on average each year about 45,000 trees, 1,800,000 mz of

water and 1,620,000 liters of fuel. The Latin America Beverages business has optimized


beverage packaging projects across Mexico, Peru, Columbia, Bolivia, Brazil, Argentina,

Honduras and Guatemala, resulting in the removal of over 800 tons of packing annually,

specifically reducing the need for PET resin for bottles, corrugate boxes, bottle-top closures and

glass. The average Pepsi bottle contains 10% recycled plastic, more than any other national soft

drink brand. Pepsi-Cola's bottles and cans are among the most recycled packages made – since

1990; more than 150 billion Pepsi containers have been recycled. Across all our U.S. divisions,

initiatives conducted in 2007 to reduce packaging have resulted in more than 20 million pounds

of material reduction across PET bottles, paperboard and corrugated materials.


CHAPTER –IV

DATA ANALYSIS

Type of outlets

Types of stores Number of stores


general store 35Grocery shop 12

Betel shop 18Eatery shop 23

40%

14%

20%

26%

general stores grocery shops betel shops eatery shops

Interpretation

In the above figure shows the percentage wise distribution of the stores taken as a sample size.

The total sample size is 88 which when taken as 100%,then 35 general stores shows 40%,12 grocery shops shows 14%, 18 betel shops shows 20% and 23 eatery shop shows 26%.

Q1 How much of the business you do, from PEPSIResponses Number of retailers

0-10% 011-25% 1326-50% 3151-75% 2376-90% 2191-100% 0


0% to 10%

11% to 25%

26%-50% 51%-75% 76%-90% 91%-100%

0

5

10

15

20

25

30

35

No.of retailer

INTERPRETATION

In the above figure shows the percentage wise Order placement by the retailers. 23 general stores shows up to 75%, 13 grocery shops shows up to 25%, 31 betel shops shows up to 50% and 21 eatery shop shows up to 90% of order.

Q2 How frequently do you buy PEPSI?

Order booking Number of retailersDaily 20

Alternate day’s 282-3 times a week 17

Once a week 18Less frequently 5


23%

32%19%

20%

6%

Daily Alternate day’s 2-3 times a weekOnce a week Less frequently

INTERPRETATION

In the above figure shows the percentage wise frequent user of PepsiCo, 28 general stores shows up to 32%, 18 grocery shops shows up to 20%, 17 betel shops shows up to 19% and 20 eatery shop shows up to 20% of order.

Q3 Which is your favorite C.S.D.?

Favorite C.S.D. No. of responsesPEPSI 237UP 16

MIRINDA (O) 13DEW 11SLICE 18

NIMBOOZ 7


26%

18%15%13%

20%8%

pepsi7UPmirindaDewSliceNimbooz

INTERPRETATION

In the above figure shows the percentage wise favorite C.S.D of PepsiCo In which Pepsi shows 26%, 7UP shows18%, Miranda shows 15%, Dew shows 13%, Slice shows 20% and Nimbooz shows 8% product visibility in market.

Q4 How satisfied are you with the VISI COOLER of PEPSI?

Satisfaction level No. of responsesVery satisfied 7Quite satisfied 16

Neither satisfied nor dissatisfied 26Quite dissatisfied 19Very dissatisfied 20


8%

18%

30%

22%

23%

Very satisfiedQuite satisfiedNeither satisfied nor dissat-isfiedQuite dissatisfiedVery dissatisfied

INTERPRETATIONIn the above figure shows the percentage wise Satisfaction level by the retailers. In which 8% are very satisfied, 18% are Quite satisfied, 29% are neither satisfied nor dissatisfied,22% are Quite dissatisfied and 23% are very dissatisfied due to the visi cooling and high consumption of voltage.

Q5 How satisfied are you with the CREDIT FACILITIES of PEPSI?

Facilities No of responsesVery satisfied 37Quite satisfied 34



39%

36%

3%

12%

10%


INTERPRETATION

In the above figure shows percentage wise credit facilities by PepsiCo in which 39% are very satisfied, 36% are Quite satisfied, 3% are neither satisfied nor dissatisfied,12% are Quite dissatisfied and 10% are very dissatisfied.

Q6 How satisfied are you with the SCHEMES of PEPSI?

Schemes No of responsesVery satisfied 13Quite satisfied 11



15%

13%

8%

27%

38%

Very satisfied Quite satisfiedNeither satisfied nor dissatisfied Quite dissatisfiedVery dissatisfied

INTERPRETATION

In the above figure shows percentage wise Scheme benefits of PepsiCo. In which 27% are very satisfied, 12% are quite satisfied, 8% are neither satisfied nor dissatisfied, 27% are quite dissatisfied and 15% are very dissatisfied.

Q7 How satisfied are you with the DASH BOARD of PEPSI?

Satisfactory level No of responses


Very satisfied 38Quite satisfied 27


43%

31%

11%

9%6%


INTERPRETATION

In the above figure shows percentage wise satisfaction level of dash board provided by the company in which 43% are very satisfied, 31% are quite satisfied, 11% are neither satisfied or dissatisfied, 9% are quite dissatisfied and 6% are very dissatisfied.

Q8 How satisfied is you with the GLOW SIGN BOARD of PEPSI?

Satisfactory level No of responses


Very satisfied 36Quite satisfied 27


41%

31%

16%

13%


INTERPRETATION

In the above figure shows percentage wise satisfaction level of glow sign board provided by PepsiCo in which 41% are very satisfied, 31% are quite satisfied, 16% neither satisfied nor dissatisfied, 12% quite dissatisfied, and 0% are very dissatisfied.

Q9. Do you think that aggressive advertising further increase the sales volume of

Pepsi?

a) Yes b) No c) can’t say

Responses yes No Can’t sayNo. of stores 73 9 6


83%

10%

7%

yesnocant say

INTERPRETATION

In the above figure 83% of the retailers says yes and agrees to the fact, 10% of the retailers says no and dis-agrees to the fact and 7% of the retailers does not says anything to the fact that aggressive advertising further increase the sales volume of Pepsi.

Q10. Which advertising media do you think affects the sales most?

Advertising No of responsesTelevision 30Display 24Magazines/Newspapers 21Wall paintings/Hoardings 13


34%

27%

24%

15%

TelevisionDisplayMagazines/NewspapersWall paintings/Hoardings

INTERPRETATION

The above figure shows percentage wise advertising media which influencing PepsiCo customers in which 34% from television, 27% display, 24% by magazines and newspaper and 15% influencing from hoarding and wall painting.

Q11. What kind of promotional activities affect sale mostly?

Promotional activities No of responsesFree bottle scheme 27

Discount Crates 38Prize 21Other 2


31%

43%

24%2%

Free bottle scheme Discount CratesPrizeOther

INTERPRETATION

The above figure shows percentage wise promotional activities which attracting retailers in which retailers preferred 31% free bottle scheme, 43% are preferred discount crates, 24% are liking prize and 2% are preferred other gifts.

Q12. Delivery on Promises?

a) Agree b) disagree


35%

65%

agreedisagree

INTERPRETATION

The above figure shows delivery promises to the retailer by the distributor in which 35% of retailers are strongly agree with distribution system and 65% are strongly disagree with distribution system.

FINDINGS


Coca Cola is market leader and Pepsi is the market challenger in the whole Dhanbad

market.

From the coca cola product thumps up and pepsi products slice is the highest selling

product in the Dhanbad market.

Coca cola is the market leader in overall Dhanbad market but in Railway

Station,Dhanbad and Hirapur are the selling of Pepsi is more than Coke.

In the case of Bartand and Saraidhela road market the selling of Pet bottle is more than

RGB.

In Chiragora market, Randhir verma chok road and refugee colony market supply of

Pepsi is not better than Coke.

In the case of mineral water under brand name Aquafina, is selling more than Kinley.

I have found that the retailers are giving more preference to the Coca Cola products.

In the case of scheme Pepsi is providing better schemes than Coca Cola.

SUGESSTION


We give the following suggestion that can be implemented to increase the customer satisfaction and the profitability of the company.

Supply distribution should improve during summer.

The sales should be trained and to be courteous with the retailer.

It should depend the partnership arrangement with suppliers and distributors and

make them feel as a part of the company.

Pepsi fridge and racks should be make easily available for the retailers so that

they survey the purpose of visibility as they say – “JO DIKHEGA WOHI

BIKEGA”.

More emphasis should be given in retaining and building loyalty among retailers

while at the same time new retailers should be encouraged to sell Pepsi.

Another brand of Cola flavour should be introduced and it should have strong

taste and more fizz so as to attract the customers who like Thumps up more than

Pepsi.

Supply should be in time.

Merchandising facility should be fulfill like board.

The company should concentrate on the brand awareness of its product.


LIMITATION

1:-Some of the retailer were not ready to be interviewed due to lack of time and

some are not interested in getting interviewed in fear of disclosing their privacy.

2:-Sometimes retailer were not able to recall the fact which were asked the

question.

3:-Scorching heat in the Jamshedpur city came as a barrier while doing the

project.

4:-Often retailers are reluctant to provide information related to my project.

CONCLUSION


Everything in this world is made to utilize properly but should be reach at the proper person or to

the proper utilize areas. Otherwise the value added to those things become in vein. As there is a

proverb that, “Far from Eye, far from Heart”.

Thus marketing role play a very important role in achieving the objectives of a company.

Undoubtly, value utility is created by the manufacture of product or service but time and place

utilities are created by marketing role. According to Drucker, “both the market and the

distribution channels are often more crucial than the product”. They are primary and the product

is secondary. In an economy like that of India, where marginal shortages can lead to

disproportation distortion in prices, a dependable and efficient distribution system is very much

essential. The distribution system creates a value added to all most all products.

All from the above study not withstanding its restructuring efforts, Pepsi steel had some distance

to cover to catch up with Coke.

BIBLIOGRAPHY


www.Pepsizone.com

www.Pepsiindia.com

Philipcotler

Magazine


http://www.pepsiindia.com/

http://www.pepsizone.com/

pepsico graph chart 2

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