INDEX

Chapter Contents Page No.

1

1.1 Retailing1.2 Cold drink retailing industry1.3 Buying behavior 1.4Sales Promotion & Marketing1.5 Need of the Project

6 6 7810

22.1 Company Profile2.2 Organization Chart2.3 Mission2.4 Vision

16 182020

3

4

5

Objectives

4.1 Research Methodology4.2 Research Approach4.3 Project Implementation4.3.1 Description4.3.3 Meaning of Marketing research4.3.4 Stages in the process of marketing research process4.4 Sampling4.5 Data collection method4.6 Limitations

Marketing-mix

22

24 24 25 26 2626 27

3031

346 6.1 Data analysis and Interpretation 43

7 Finding

8 Recommendations 73

9

10

Conclusion

10.1 Questionnaire for retailers10.2 Questionnaire for Distributors

75

77 78

11 Bibliography 80

EXECUTIVE SUMMARY

PROJECT TITLE: - “SALES PROMOTION AND MARKETING”

ORGANISATION: - “JAI BEVERAGES Pvt. Ltd.”

PepsiCo is a world leader in a convenient food and beverages in 2007, with

revenues of more than & 32 billion and more than 1, 57, 000 employees. The company

consists of Frito-lay North America PepsiCo Beverages North America, PepsiCo

International and Quaker Foods North America. PepsiCo brands are available in nearly 200

countries and territories and generate sells and the retail level of about & 85 billion. PepsiCo

is the world’s premier consumer Products Company focused on convenient foods and

beverages.

PepsiCo is India produces healthy financial rewards to investors as it provides opportunities

for growth and enrichment to employees, business partners and the communities in which it

operate.

The project was done in Jai Beverages soft drinks limited, a franchise of PepsiCo limited to

increase the sales of PepsiCo brands in the market of Jammu & outer Jammu by using

different sales promotion activities as Coupon System, Scheme System & by the sales

promotion drive called as POG drive 2010..

The POG drive was aimed to improve the visibility of all the brands of Pepsi in Vissicoolers of Pepsi in different parts of Jammu town. Under the program me, aim was to improve the visibility of those brands that were having low sales as the program me has the tag line “jo dhikta hai woh bikta hai” i.e. any product which is visible is bound to be sold. The drive includes increasing the SKUs (Stock Keeping Unit) of PepsiCo in a planned manner. This result into availability of space in the Vissicooler and visibility of different brands of Pepsi and thus the sales increased. Retailers were motivated by way of prize distribution & schemes so that they keep the PepsiCo brands according to POG (Plannogram).

The natures of respondents, which are selected, are the retailers ant the distributors of the company. The area of project work is Jammu city including both rural and urban area, forming a sample size of 130 retailers and 16 distributors.

Chapter-1

1.1 What is Retailing ?

The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. Department stores, like Burdines and Macy's, discount stores like Wal-Mart and K-Mart are all examples of retail stores.  Service providers, like dentists, hotels and hair salons, and on-line stores, like Amazon.com, are also retailers.

Manufacturer

Distributors/Wholesalers

Retailers

Consumers

1.2 Cold-drink Retailing industry in INDIA

Non alcoholic soft drink beverage market can be divided into fruit drink and soft

drink. Soft drinks can be further divided into carbonated and non carbonated drinks. Colas,

lemon and oranges are carbonated drinks while mango drinks come under non-carbonated

drinks.. The soft drinks market till early 1990’s was in hands of domestic players like Coke,

Thumps Up, Limca etc. but with the opening up of economy and coming of MNC players

Pepsi and Cock the market has totally under their control. Worldwide, Cock is the leader in

carbonated drinks market. In India it is Pepsi, which scores over cock but this difference is

fast decreasing. Pepsi entered Indian market in 1991. Cock re-entered (after they were thrown

out in 1977, by then central government) in 1993.

Pepsi has been targeting the youth and the sales have been doing well by sticking to

this youth segment. Cock on the other hand struggled initially in establishing itself in the

market. In a span of 7 years of its operations in the country it changed its CEO four times

they seem to have started understanding the pulse of Indian consumers

1.3Buying Behavior in Soft Drink Industry:

Soft drinks come under the category of products on impulse. This attitude of impulse

buying is slowly changing to occasion-led buying and also to some extent

consumption through home refrigeration particularly in urban areas.

The market is slowly moving from non alcoholic carbonated drinks to fruit based

drinks and also to plain bottled water due to lower price and ready availability.

Consumers purchase soft drinks primarily quench thirst therefore people traveling and

not having access to hygienic water reach out for soft drink. This accounts for a large

part of the sales.

Brand awareness plays a crucial rule in purchase decisions.

Availability in the chilled from also plays a crucial role in purchase decisions. This

has made both the companies to push its sales and to increase its retail distribution by

offering Visi cooler to retailers.

Why there is no aversion to consumption of soft drinks buys any age group, the main

consumer of this market are people in the age group of 30 and below.

Product differentiation is very low, as all the products taste the same. But brand

loyalty is high in the case of kids and people in the age group of 20-30 years.

According to NCAER survey, lower, lower-middle, upper-middle class people do

91% of the total consumption of soft drinks in the country

Major Players in Soft drinks Industries

The two global majors Pepsi and Coca Cola dominate the soft drink market in India. Coca

Cola, which would up its operations during the introduction of the FERA regime, reentered

India 16 years later in 1993. Coca Cola acquired a major chunk of soft drink market by

buying out local brands Thumps up, Limca, Maaza and Gold spot from Pearl beverages, Coca

Cola has also acquired Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport

Cola in early 1999 and now recently in Oct.2008 .It acquires distribution rights of these

brands from IFB Agro Ltd . Pepsi stated a couple of years before Coca Cola manufactures

came up with their own market share figures and claimed to have increased their share.

1.4 SALES PROMOTION AND MARKETING

The tools used by Jai Beverages Pvt. Ltd, for fulfilling the various purposes of its promotional

activities are the following:-

Coupon System

Dealer’s sales contest

Sales promotion through Schemes

Coupon System:

This method of sales promotion was used by the Jai Beverages Pvt. Ltd. To increase the sales of

PepsiCo brands by giving discount coupons to the retailers on the purchase of PepsiCo brands

i.e. on one case of Pepsi, one discount coupon of Rs15 was given to the retailer and so on.

Dealer’s sale contest:

Another method of sales promotion being used by the Jai Beverages Pvt. Ltd., through its

distributors is to conduct dealer’s sales contest during the peak seasons i.e. during April to July.

In it the dealers are given prize in the form of cases of soft drinks and other special gifts. In the

contest at first his or her respective distributors according to their categorize each dealer. And

then each distributor fixes a target of minimum sale for each category to which every dealer

according to his or her category has to achieve during the contest period and also the dealers

have to Charge & Pure their Pepsi Vissicoolers.

The dealers achieving highest sales over and above the target set and keeping their Pepsi

Vissicoolers Pure i.e.Vissicooler of Pepsi should contain only Pepsi brands and keeping Pepsi

Vissicoolers Charged i.e. Pepsi Vissicooler should be equipped fully by only brands of Pepsi

were given the awards and the special gifts. This sales promotional drive was called as Pepsi

POG Drive 2010.

Sales Promotion through Schemes:

Another method of sales promotion used by Jai Beverages Pvt. Ltd. Was the Scheme System.

In this promotional activity different schemes were offered to retailers on purchase of

PepsiCo brands like Aquafina bottle on purchase of one pack of 500 ml pet bottle & so on.

This promotional activity was very effective in maximization of sales of PepsiCo brands in

Jammu town.

MERCHANDISING/ DISPLAYS

Proper merchandising and display at the store level promotes sales; it promotes the consumer to

switch over to the displayed brand ignoring existing brand loyalties; it persuades him to buy

“now” rather than latter; and it makes him buy more than the originally intended quantity. All

these are essentially sales promotional functions. While advertising can only make a consumer

aware of the product or generate a desire for it, merchandising/ display often motivates a

consumer to buy a product instantly. Point of purchase displays are one of the most widely used

sales promotions tools. With the proliferation of brands, innovative displays have become a

prerequisite for success. In the store brands compete with each other for consumer’s attention.

Display Enhance Counter Pull

Display at the point of purchase can be rightly describe has a “clincher” in the marketing

process. When awareness and interest has been created in the consumers mind through

advertising and other promotional measures, a good display in the store can help to clinch a sale.

The displays are also effective in inducing brand switching. A consumer normally goes to a retail

outlet to purchase his usual brand. At the retail outlet, a good display of a competition brand can

command his attention and he may buy the competing brand. In other word Good display can

lead to impulse buying and brand switching. A good display is the surest way to attract the

consumers. It pulls the consumers to the consumers. In fact, displays have their origins in the age

old saying that “goods well displayed are half sold”.

Display can be of various types- window display, wall display, counter display, aerial display, or

floor display, depending on where it is fixed. Display materials to constitute a large spectrum,

like posters, danglers, stickers, mobile wobblers, steamers, balloons, etc. To enhance the display

effect, manufacturers use several gadgets and approaches. Illuminated designs, motion displays,

sky writings, etc., add to the display effect. Some companies organize display units locate them

at vantage points within the store to attract store traffic. Skillfully designed and strategically

located display units can enhance the

Sales appeal. More and more firms are going in for innovative displays to give their brands

visibility in today’s crowded shop shelves.

Pepsi Cool Zone: Pepsi, for instance, set up “cool zones” in outlets to create a visual effect. These zones house

Pepsi display racks next to its visicoolers, both stocking the entire Pepsi range in a preset format-

the products horizontally, at eye level, and in different sizes down the racks with selling price on.

Companies are also using the technique of mass display. Within the limited space available in the

retail store, big stocks of a given brand are artistically arranged to gain attention. Customized

racks are also being used for display effect. Now the Pepsi has launches a POG (Plano gram)

2010 on this regard. POG Drive 2010 is a trade promotion which is internal affair between the

company and its trade.

1.5 NEED OF THE PROJECT:

The training in the organization is very important for a student who is undergoing with such

course. This course is not the answer for all the problems, which arises in the practical fields.

There is no certain formula for any particular problems, but the aim of this study is to develop

the ability of decision-making. A right decision at right time itself helps an organization to run

smoothly.

This training in an organization gives an idea how decisions are taken tact fully when any

problem comes to an executive. So the way of problem solving, right decisions making and

knowledge of different type of marketing activities give much importance to the study. Though

only in two months it was not possible to understand it so deeply but an overall idea could

develop

Chapter-2

2.1 COMPANY-PROFILE

a) Name of the unit: - JAI BEVERAGES PVT. LIMITED

b) Location/Address of the unit

SIDCO INDUSTRIAL COMPLEX, ISMAILPUR ROAD,BARI BRAHMANA, JAMMU-181133PHONES: 20284, 21384 FAX: 01923 – 20184E-mail: jbpl@nde.vsnl.net.in

REGD. OFFICE: 52, JANPATH, NEW-DELHI-110001

PHONES: 3321098, 3353625 FAX: 3324769

E-mail: jbpl@vsnl.com

c) Brief History of the unit & present position:-

The year was 1999 and PEPSI Company in India was very eager to improve its extremely

poor market share (less then 3%) in the state of Jammu and Kashmir. That was when it

approached the soft-drink maestros of India - the Jaipuria family, and Mr. C.K. Jaipuria in

particular, for starting a plant in J&K. In spite of all the odds, the non-inductive climate in

the state for a new business venture, he took a bold step and went ahead with accepting

the challenge and taking the franchise in the name of his elder son - Mr.Anuraag Jaipuria,

and Jai Beverages Private Ltd. Was born.

 

From the day of the decision, to this day in 2001, there has been no looking back. In this

short span of time, the company has been formed, sprawling compound of erstwhile M/S

Hindustan Levers Ltd. taken over from a supportive SIDCO, a prestigious unit in J&K,

after an initial investment of Rs.27.1 Crores, has been established with full backing of the

Ministry of Industries (J&K government), and an ultra-modern plant is in full swing. The

boiler used is oil-fired, with a 33m high chimney and an effluent treatment plant which

releases all the effluent water after full treatment at very reasonable, and much under the

Pollution Board's maximum acceptable BOD and COD levels. In fact, work in on to stop

all the treated effluent from going out and instead to utilize this water internally for

horticulture. In other words, the water is being put back into the earth to retain the water

table. Further,

Work has been done to grow more trees within the premises, in line with the universal

endeavor of making the earth green.

 

With the coming of this prestigious plant, there has been an upsurge in the economy of

the people of the area, in particular, and the state in general. The direct, and indirect,

employment generated by the unit has already surpassed a figure of 650, and is growing

steadily. The excise deposited to the Government exchequer has already crossed an amount

of Rs.361 Lacks, and is again growing. The once semi-deserted main road of the industrial

complex has become very busy and would soon be required to be widened.

  In short, the coming of Jai Beverages Pvt. Ltd into the state of Jammu and Kashmir has

surely made a big mark into the industrialization of the state, with many big industrial houses

watching eagerly the outcome of this prestigious unit.

JAI BEVERAGES PVT.LTD is a part of the diversified Jaipuria Group being the major

franchisee of PEPSI in India. The group has Pepsi’s bottling plants in India and Nepal. It also

has the franchise for Modern Bread, Pizza Hut, besides business interests in Information

technology, Education, Healthcare and Textile retailing.

The co. is producing and marketing the complete range of Pepsi for the State of

JAMMU & KASHMIR.

. The fully automatic plant is being run by a team of professionals who have already made a

mark for themselves by creating history in the international PEPSI system by achieving the

GOLD MEDAL in the first year of operation from among over 400 plants worldwide.

The company is committed toward environment safety and is trying to convert its empty

space in to green and recycling waste water and has a modern working Effluent Treatment

Plant.

As per market share at present Pepsi is enjoying 42% market share whereas leader since 15

years in Jammu market on 58%.At present on the basis of commitments, quality, skills and

energetic team we feel give neck to neck fight to our rivals.

2.2 ORGANISATIONAL STRUTURE

VICE PRESIDENT

CHAIRMAN

MANAGING DIRECTOR

Headquartered in Purchase, New York, with Research and Development Headquarters in Valhalla, The Pepsi Cola Company began in 1898 by a Pharmacist and Industrialist Caleb Brad ham, but it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998 and Quaker Oats in 2001. In December 2005, PepsiCo surpassed Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. Pepsi-Cola, Venezuela

H. R .D.Manager

FinanceManager

MarketingManager

GeneralManagerWard

TimeOfficer

Security Officer

StoresOfficer

Marketing Trainee

Pilot Salesmen

Area DevelopmentManager

Market DevelopmentManager

Production

Purchasing

QualityManager

PlantManager

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."

.Soft drinks market in India

India is one of the top five markets in terms of growth of the soft drinks market. The per capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum in the year 2003. It is very low compared to the corresponding figures in US (600+ bottles per annum). But being one of the fastest growing markets and by the sheer volumes, India is a promising market for soft drinks.

The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot and Thums Up when it entered Indian market for the second time. Pepsi Co’s soft drink portfolio also consists of Miranda and 7Up along with Pepsi. The market share of each of the company is more or less the same, though there is a conflict in the estimates quoted by different sources

Chairman and CEO

IndraK.Nooyi

Chairman, CEO

Massimo.F.d'AmoreCEOPepsiCoAmericas Beverages

John.C.ComptonCEO,PepsiCo Americas Foods

Michael D. WhiteCEO,PepsiCo Intl. &Vice Chairman, PepsiCo

2.3 Our Mission

Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

2.4 Our Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company

Chapter-3

OBJECTIVES OF THE PROJECT:

To increase the visibility of PepsiCo brands by way of sales promotional activity called as PEPSI POG DRIVE 2010.

To break the Coke monopoly by way of sales promotional activity called as Scheme system in which different schemes were offered by Pepsi.

To increase the sales of PepsiCo brands by way of sales promotional activities i.e. Coupon System & by offering different Schemes.

CHAPTER-4

4.1Research Methodology

Planning is an important aspect in regard to the commencement of any type of research investigation. A proper plan of action consisting of the investigation, the hypothesis to examine and the various methods to be adopted for collecting primary data, will have to be prepared. Such a plan provides an outline of the research work to be undertaken and also the nature of analysis of data that has to be carried out. A plan of action is called a research design. The main objective in preparing the research design is to enable a researcher to conserve his resources of time, money and energy for the main purpose of reaching the goals of research without any deviation from the main objective.Thus, a research design can be defined as an outline that provides the specification for the careful collection of relevant data and appropriate analysis so as to fulfill the objective of research with precision, economy and perfection.It is necessary to adhere to the following rules while planning research design:

1. The nature and scope of the problem of research has to be clearly and unambiguously stated. Further, the problem should be of a practical nature in term of time, money and energy. 2. For the purpose of collection of data, various sources of primary data and the methods that consist of direct personal investigation, indirect oral investigation, by questionnaire and schedules and also from local sources etc. should be clearly mentioned.3. The reason for selecting a particular time-period relating to the problem of study should be clarified. The geographical limits depending upon the problem should be stipulated.4. The nature of the sampling design that would be adopted should also be explained.

4.2 Research Approach

The investigation is concerned with the collection of data; this will be done in two stages: primary and secondary. The first stage will cover the secondary research which is a significant part of the study. This section refers to the compilations like published articles in books, journals, magazines or newspapers that already exist. The goal of this desk research is to provide the necessary background information for primary investigation; hence it is conducted before the primary research. The second stage after completing the secondary study will emphasize on the primary exploration, this is based on the primary sources, which refer to research that has been undertaken specifically for the problem or project at hand (Kent 1999).

4.2.1 Primary Research

“The purpose of primary research generally should be to fill gaps in existing knowledge.” (Stewart and Kamins1993). A qualitative research rather than quantitative is being pursued because it is more appropriate for the study that is exploratory in nature. Hence, the study does not require quantification of any element. This academic work aims at revealing the process rather than the structure which is done through qualitative research (Carson et al, 2001: 65). Also, the qualitative investigation is more suitable as it provides “rich and holistic data” answering the “why and how” questions (Birn, 1990).

4.2.2 Secondary research

Secondary investigation refers to the resources that already exist and may include: published articles in journals, books, newspapers or magazines (Kent, 1999). The secondary study helps define the agenda for subsequent primary research by suggesting which questions require answers that have not been obtained in previous research. It may also identify the means by which the primary research should be carried out in terms of questions that should be

addressed, measurement instruments (e.g. questionnaires), and relevant respondents. (Stewart and Kamins 1993)

Identifying what is already known and available in secondary information tends to enhance the efficiency of primary efforts. Thus the efforts are made only for the acquisition of new information. For these reasons, the secondary study is conducted before the primary.

4.3 PROJECT IMPLEMENTATION

As described in Chapter3, the effort made here in the project is to find out competitive analysis and market share of pepsi. Recommendations will be made at the end of this project with an aim to increase the profitability and business growth of the company. A systematic and methodical approach will be used for the same purpose. The execution of the project is mentioned further.

4.3.1 Description

For the research purpose, I had to find out the market position of Pepsi individually and in comparison with its arch rival Coca-cola. Information had to be collected about the like the number of bottles of PepsiCo and coco-cola in the retail outlet, type of signage, which company’s cooling system possessed by the retailer, problems being faced by the retailer ways to improve the market share of PepsiCo etc.. I also visited various distributors to get their opinion regarding the present market position of PepsiCo and the problems they are facing if any.A Questionnaire prepared by me was the source of getting the required information. The Questionnaire was prepared keeping the objectives in mind. Visiting all these retailers and distributors and collecting the information was a great learning experience, as I had to use my all theoretical knowledge and put them to practice.

4.3.3 Meaning of Market Research

Market Research is defined as "the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing".

(1) Define the research problem\ objectives

(2) Review the literature

(3) Formulate hypothesis

(4) Design Research (including sample design

(5) Collecting data

(6) Data Analysis

(7) Interpretations\Findings

(8) Preparing research report

4.3.4Stage in Market Research Process

Stage in Market Research Process

1. Formulating a Research Problem: At the very outset the researcher must single out the problem he wants to study, i.e. he

must decide the general area of interest or aspect of a subject-matter that he would like to inquire into. Initially the problem may be stated in a broad general way and then the ambiguities, if any relating to the problem be solved. Then the feasibility of a particular solution has to be considered before the working formulation of a problem can be set up. The formulation of general topic into a specific research problem, thus, constitutes the first step in a scientific inquiry. Essentially two steps are involved in formulating the research problem, viz, understanding the problem thoroughly, and rephrasing the same into meaningful terms for an analytical point of view.