ram dayal gupta project
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A
PROJECTReport0n
At
Submitted In Partial Fulfillment for the Degree ofMaster of Business Economics&finance
BUNDELKHAND UNIVERSITY, JHANSI
Submitted to: SubmittedBy:
Dr. ANUP Singh RAMDAYAL GUPTA
ASSI.PRO,IEF, B.U., JHANSI MBEF 2nd year
ROLL NO-10502013
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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 acomplete 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.
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Acknowledgement
This project report had been possible through the direct and indirect co-operationof various person for whom I wish to express my appreciation and gratitude.
First and fore most I am devoted for the concern by which I found a chance tothe study.
It is always pleasurable or feeling an excitement of doing work under guidanceof teachers. I am grateful to Dr. ANUP Singh for his valuable anencouragement in my Academic endeavor.I am thankful to all faculty members colleagues friend and respondent ofBAZPUR city whose cooperation helped me for complete my project.
I am beholden to my parents and other family member for their blessing andencouragement, Last but not least my sincere thanks to my mentor toDr.ANUP SINGH who allowed me permission to work under his guidanceand played a role of torch bearer to make this report.
RAM DAYAL GUPTA
M.B.E.F 4rd SemB.U. ,JHANSI
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PROJECT PROPOSAL SHEET
PROJECT TITLE:
A THOUGHTFUL STUDY OF PEPSI IN BAZPUR AND NEARBY AREA
MARKET
NAME OF ORGANIZAYION: - PEPSICO INDIA HOLDING LTD
.
NAME OF STUDENT: - RAM DAYAL GUPTA
INCHARGE OF PROJECT: - Dr.ANUP SINGH
FACULTY GUIDE: - Dr. ANUP SINGH
PROJECT DURATION: - 30 DAYS
RESEARCH AREA: - BAZPUR
METHODOLOGY APPLIED: - PERSONAL INTERVIWE WITH
OUTLET
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STUDENT DECLARATION
This project has been undertaken as a partial fulfillment of the requirement for
the degree ofM.B.E.FofBUNDELKHAND UNIVERSITY JHANSI
This project was executed during the written break offer the third semester underthe supervision of Dr. ANUP Singh further I declared that this project in myoriginal work & the analysis and finding are academic purpose only.
RAM DAYAL GUPTAM.B.E.F 4rd Sem
B.U. ,JHANSI
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INDEXPrefaceAcknowledgement Project proposal sheetStudent declaration
Table of Contents
CHAPTER -1Introduction
CHAPTER-2Company profile
Origin of Pepsi
Indian story of Pepsi .
PepsiCo India
Pepsi India journey
Pepsi India turnover Pepsi bottling plant Bazpur
Different flavors of Pepsi
Department in PepsiCo .....
Organization structure
Channels of distributor in PepsiCo
Pepsi Business ....`
Front line
Market unit
Business unit Organization structure
Franchise Organization structure
Support center
Beverage consumption
Products
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People
The product mix of Pepsi
Pepsi language
Objective
Market concepts ....
CHAPTER-3Research Methodology
CHAPTER-5S W O T analysis
CHAPTER-6My findings
CHAPTER-7My suggestion .
CHAPTER-8Limitation
CHAPTER-9
Conclusion
Questionnaire Bibliography
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INTRODUCTION
This project report is prepared for the submission to the BUNDELKHANDUNIVERSITY, JHANSI.
This project was prepared during the summer training conducted in consecutiveeight week in PEPSICO INDIA HOLDING PVT. LTD It was based ontheoretical/practical knowledge gained by the survey.The theme of the survey is the measurement of market share of Pepsi inBAZPUR.
The soft drink industry is sure to enter a booming phase in near future and thedrinks will be available any where. To dominate the market share. Properstrategy should be formulated, and for this a pulse of the market should be takenconsistently, since there is no independent market research agency that tracksretail sales, so from time to time research projects are undertaken and this
project was a endeavor in that direction previously there was no competition inthe Indian soft drinks market, but will all these companies coming in the Indianmarket, a huge competition was taken place with high voltage advertisement.
The industry is in the midst of mature phase and his distribution networkdominates keeps on shifting from company to another. But it is almost a duopolymarket. In which players are PEPSICO INDIA HOLDING PVT LTD. and
COCA-COLA (INDIA) LTD.
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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 Pepsis 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 NewIreland City, New York In 1931, the company went bankrupt a
second time.
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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.
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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 1980s 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. Pepsis share which has been originally just under 40% was
whittled to about 35% and PAICs 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
farmers imagination.
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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 TROPICANNA (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.
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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 its 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 PepsiCos 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.
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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 90s breakeven was pegged at 40 million
faces. Todays 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 baseprimarily 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,
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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. Thats helped Pepsis Indian team to build quite a
reputationPepsi 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.
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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
Plant-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 3 rd
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.
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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
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PEPSI INDIA TURN OVER (RS. MM)
INCLUDING FOBO SALES WE ARE A +3000 CRORE COMPANIES
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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
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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
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PEPSI BOTTLING PLANT BAZPUR
An India venture of the Pepsi co Inc United States opened its
bottling plant at Bazpur Distt. - Udham Singh Nagar in Uttarakhandin year 1997 and bottling started from the 5 May 1998.
The plant of PepsiCo India Holding (P) Ltd. At Bazpur haseffective manpower of 122 that includes both line and authorities
The bottling capacity of India Holding (P) Ltd. At Bazpur plant is1,000 bottles per minute everyday. There are about 60,000 cases of
bottles, which are kept for bottling purpo
The achievement of the plants include internationalQuality Award (IQA) for house keeping.
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DIFFERENT FLAVOURS OF PEPSI
In the plant of PepsiCo India holding (P) Ltd. There are produceddifferent flavors in 200ml, 300ml, 1 Ltr, 1.5 Ltr.-6b, pet 18 Ltr-6b quantities.
That flavors are as-
PEPSI
PEPSI AHA
MIRINDA LEMON
MIRINDA ORANGE
MIRINDA APPLE
7UP
LEHAR SODA
AQUAFINA DIET PEPSI
MOUNTAIN DEW
DEPARTMINT IN PEPSI CO INDIA HOLDING (PVT) LTD
HUMAN RESOURCES MARKETING
MANUFACTURING
PURCHASE ACCOUNTS
QUALITY CONTROLSHIPPING
ORGNISATIONAL STRUCTURE28
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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
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FRONT LINE Serve the customer
Territory = group of customer
Four main fronts line position
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Territorycoordinator
Customerrepresentation
Territory
developmentmanager
Accountdevelopmentrepresentation
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MARKET UNITSExecute flawlessly
Market units = common geographical area
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Territorycoordinator
Customerrepresentation
Accountdevelopment
representation
Plantmanager
Marketingequipmentmanager
Unitmanager
Territorydevelopment
manager
Marketdevelopment
manager
Humanresource
Finance
Marketunit
Marketunit
Marketunit
manager
Marketunit
Marketunit
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Business units implement resource & support
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Territorycoordinator
Customerrepresentation
Accountdevelopmentrepresentation
Plantmanager
Marketingequipmentmanager
Unitmanager
Territorydevelopment
manager
Marketdevelopment
manager
Humanresource
Finance
Marketunit
Marketunit
Marketunit
manager
Marketunit
Marketunit
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Building the business, day by day
Millions of transaction everyday, 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
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ORGNIZATION STRUCTURE
(1) SalesWorks with customers to ensure they are satisfied
develops & communicates customers strategy
organizes promotion schedule
(2) FinancePlans manager & reports finances
Plans & manages financial decisions
Financial reporting
Information technology
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Lime lemon regular cola25% 45%
Orange15%
Otherflavors15%
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3) Human ResourcesDevelops employees skills and capabilities
Recruitment
Compensation and benefits
Training and development
4) Marketing Builds consumer and customer preference
Studies consumers, market trends, consumptiondata, 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
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Franchise organization structure
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Franchise bottlers
Marketunit
OperationSales MarketingHumanresource
Marketunit
Franchisedirector
franchisemanager
Marketunit
Marketunit
Finance Corporateaffairs
Businessunit
Businessunit BUGM
Businessunit
Businessunit
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Support Center
Located in purchase, New York
Provides resources, leadership, guidance
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Territorycoordinator
Customerrepresentation
Accountdevelopment
representation
Plantmanager
Marketingequipmentmanager
Unitmanager
Territorydevelopment
manager
Marketdevelopment
manager
Humanresource
Finance
Marketunit
Marketunit
Marketunit
manager
Marketunit
Marketunit
OperationSales MarketingHumanresource
Corporate
affairs
Businessunit
Businessunit BUGM
Businessunit
Businessunit
Finance
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BEVERAGE CONSUMPTION (Liter/capita)
0
510
15
20
25
30
35
40
45
50
JUICE WATER SOFT
DRINK
COFFEE TEA
WORLD
INDIA
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PRODUCTS
PERFORMANCE AND GROWTH
Two type of growth: vertical & horizontal
Horizontal growth: gaining ground geographically
PERFORMANCE AND GROWTH
Vertical growth = growing per capita consumptioSo 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.
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Per capita consumptionFor carbonated soft drinks
(8 oz. Severing)
0
50
100
150
200
250
300
350
400
USA U.K CHINA
SOFT DRINK
Products
Merchandising & point of purchase
Merchandising: Making our product look their best on the shelves.
POP: Sings, Posters & Banners that advertising our products.
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OUR VISION
Our vision is to be a truly global company by continuing to build a
competitive and profitable worldwide refreshment beverage business.
PBIS 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
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OUR PEOPLE
Career growth
Training opportunity
Today Is the first step
Welcome to Pepsi te
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.
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Culture of shared principles
Pepsi has a unique and admirable culture a community of talented people guidedby 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.
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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 thats not helping garner share.
Heres 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 Pepsis Aquafina have to contend with Ramesh
Chauhans 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.
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THE PRODUCT MIX OF PEPSI
BOTTLES:-
PEPSI (Black)
200ml300ml500ml1000ml1500ml2000ml .
PEPSI (Blue) 300ml500ml
MERINDA (Orange)
200ml300ml500ml1000ml1500ml2000ml.
MERINDA (Lemon)
200ml300ml500ml1000ml1500ml.
MOUNTAION DEW
200ml300ml500ml1000ml1500ml2000ml.
7UP 200ml300ml500ml1000ml1500ml2000ml.
SLICE (Mango) 250ml500ml1000ml.
LEHAR (Soda)300ml500ml.
AQUAFINA (Water) 500ml1000ml2000ml.
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CANS:-
PEPSI (Aaha) 330ml.
MERINDA (Orange) 330ml.
PEPSI (Diet) 330ml.
PEPSI (Black) 330ml.
MOUNTAIN DEW 330ml.
FOUNTAIN PEPSI:-
PEPSI 300ml.
MERINDA (Orange) 300ml.
7UP 300ml.
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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.
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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.
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OBJECTIVE OF STUDY
The objective of study of this survey in Bazpur, 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 Bazpur.
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 BAZPUR.
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.
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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
Everythings 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 meat with each other.
MARKETING:
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.
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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 Marketing:-
In Business
In non profit sector
In government sector
By social awareness group
In international sector
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RESEARCH METHODOLOGY
Marketing research is the systematic & objective investigation analysis of
information to the identification & solution of any problem in the field ofdescription & 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.
a. Post Interviews
b. Telephone Interview
c. Personal Interview
d. Group Interview
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METHODS OF DATA COLLECTIONS
Data was collected through structured Data Sheet Provided by the Pepsico
India Holding 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 BAZPUR 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.
1. Outlets of all city,
2. Restaurants, pan shop, juice corner.
3. Entire area of BAZPUR AND NEARBY AREA.
SECONDARY DATA: ---
We collected it from various sources:-
1. Offline documents
2. From internet
www.pepsico.com
landing papers and magazine
India Today,
Times Of India,
Economic Times,
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COMPARISION BETWEEN PEPSI & COCA COLA SALE ON BAZPUR DORAHA
58
SALE OF SIX MONTH'S(PEPSI)
0
500
1000
1500
2000
2500
3000
DIFFRENT RETAILERS
TOTALSAL
E(InCrates
ss s
SALE OF SIX MONTH'S (COLA COLA)
0
200
400
600
800
1000
1200
DIFFRENT RETAILERS
TO
TALSALE(InCrate
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COMPARISION BETWEEN PEPSI & COCA COLA SALEON RAMRAJ ROAD
59
SALE OF SIX MONTH'S(PEPSI)
0
200
400
600
800
1000
1200
1400
1600
DIFFRENT RETAILER
TOTALSALE
(incrates)
SALE OF SIX MONTH'S(COCA-COLA)
0
100
200
300
400
500
600
700
DIFFRENT RETAILERS
TOTALSALE(in-crates
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COMPARISION BETWEEN PEPSI & COCA COLA SALE
AT KELAKHERA & BERIYA
60
PEPSI SALE OF SIX MONTHS
0
500
1000
1500
2000
DIFFRENT RETAILERS
TOTALSALE(InCrates
SALE OF SIX MONTH'S(COCA COLA)
0
200
400
600
800
1000
1200
1400
DIFFRENT RETAILERS
TOTALSALE(InCrate
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COMPARISION BETWEEN PEPSI&COCA COLA SALE AT RATAN
CINEMA & MANPUR ROAD
61
SALE OF SIX MONTH'S(PEPSI)
0
200
400
600
800
1000
1200
1400
1600
PCI
DIFFRENT RETAILERS
TOTALSALE(In
Crate)
SALE OF SIX MONTH'S (COCA COLA)
0
100
200
300
400
500
600
700
DIFFRENT RETAILERS
T
OTALSALE
(In
Crate)
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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:--
Companys 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.
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OPPORTUNITY:--
The per capital consumption in India will increase
Per capital is also increasing.
Rate of social is increasing.
The future of FMCGS in India is very bright.
THREATS:--
The agencies worker may revolt against company for not proper supply ofcold drinks
Others popular brands are available in the market which may effect thesale of company products
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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.
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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.
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PEPSI BUSINESS
Pepsi company has worldwide operation in three fields:-
1. Non alcoholic Beverage2. Snack Foods
3. Fruits Juices
PEPSI COMPANY
_______________________________________________
Non Alcoholic Beverage Snacks Foods
Fruits Juices
Tropicana Lays
Pepsi Companys 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
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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]
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Finding:-
Eatery system helps Pepsi to increase their sales in Bazpur [Amar Drinks).
Most of the outlets like the offer of eatery & grocery, so thats why the
market share of coke is more than the comparison of Pepsi.
I visited near about100 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 Oullets associate
themselves with Coke in comparison to PEPSI.
The potential market of cold drinks in Bazpur is high but the Pepsi loosetheir 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 49.73 & the rest share of coke.
The survey shows that there is 20% cooling equipment of outlets, while
Pepsi has provided 41% cooling equipments to outlets & coke provided
39% cooling equipments.
The demand of Dew & Mirinda (Pepsi) is more than the other brand of
Pepsi & its also competitors of cokes 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.
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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.
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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 productscustomers 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.
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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.
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LIMITATIONS
During research certain limitation came in many ways which are below:
Time:-
Seven 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.
Accommodation:-
In these areas the transportation was also interrupted in popular survey.
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CONCLUSION
Real war between Pepsi & Coke
o 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 worlds most pervasion distribution network.
o Coke is mainly a franchise driven operation with a company
supplying its soft drink concentrator to its soft bottlers around the
world.
o Coke management releases that a soft drink is a convenience as
wall as an impulse product. According the companys expertise lies
in consumers marketing.
o Idea is to reduce the effect span as also coke will be experimenter
boachers and stadiums going out towards consumers the much as
possible.
o 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 capacity.
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QUESTIONNAIER:-
Q1. Name of the outlet?
Q2. What type 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?
Q6. What type of glow sign in & on the shop?
Q7. What type of dealer board on the shop?
Q8. Other facilities provided by the distributor?
Q9. What type of problem faced by the retailer?
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. Preference of customer?
Q14. Attitude of distributor?
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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
http://www.pepsicoindiaholding.com/http://www.pepsicoindiaholding.com/