Summer Training Project ReportUndertaken at

“PRE-SALE BOOKING SYSTEM - ANALYSIS”

Submitted in Partial Fulfillment of the Requirement for the Award of the Degree of

Master of International BusinessBy

Mohammad Maaz Uddin11MIB 2402-0098

Under the Supervision of

AJAY SHARMA & NAVEEN SHARMA

At

CENTER FOR MANAGEMENT STUDIESJAMIA MILLIA ISLAMIA, NEW DELHI-11OO25

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Declaration

I, MOHAMMMAD MAAZ UDDIN, a bonafide student of Master of International Business

at Centre for Management Studies, Jamia Millia Islamia, New Delhi, hereby declare that I

have undergone the Summer Training at VARUN BEVERAGES Pvt.Ltd under the

supervision of Ajay sharma & Naveen sharma on and from 16 May to 16- July.

I also declare that the present project report is based on the above summer training and is my

original work. The content of this project report has not been submitted to any other

university or institute either in part or in full for the award of any degree, diploma or

fellowship.

Further, I assign the right to the university, subject to the permission from the organization

concerned, use the information and contents of this project to develop cases, caselets, case

leads, and papers for publication and/or for use in teaching.

Signature of StudentMOHAMMAD MAAZ UDDIN

11-MIB-24Place: New DelhiDate :

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ACKNOWLEDGMENT

At the outset, I would like to thank PEPSICO for giving me an opportunity to do this project in their environment.There is always a sense of gratitude one expressive to others for the helpful and needy service they render during all faces of life. I have completed this training with the help of different personalities. I wish to express my gratitude towards all of them.I am grateful to my company guide Mr. AJAY SHARMA (Marketing Executive) for all his guidance, helpful hints and valuable suggestions during the course of his project.I am deeply indebted to my faculty guide, who has very well coordinated in the project work and giving me all the valuable guidance and for his constant inspiration. This project could have not been possible without his help.I would also like to thank all the staff members of PEPSICO for their support and all the people who directly and indirectly helped me during the course of the project.

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TABLE OF CONTENTS

1. Part A of the Report: Brief Profile of the Company of Summer Training

a. Vision, Mission of the company …………………………………………………..5 b. Company profile…………………………………………………………..………..5c. Brief description of varun beverages limited……………………………………….24d. Organizational Structure……………………………………………………………..27e. Marketing activities……………………………………………………….…………33

2. Part B of the Report: Report on work experience and Task Accomplishment

a. Desk/Office/field based Training:i. Description of the assigned task and responsibilities……………………. 37

ii. Nature of Work, working hours…………………………………………….38

b. Survey/Research/Fieldwork based Training:i. Topic of the research………………………………………………………39

ii. Research Objective………………………………………………………..39iii. Research Methodology……………………………………………………39

Sampling………………………………………………………………40 Data Collection Tools………………………………………………....42 Data Collection Methodology

iv. Analysis and interpretation of data……………………………………….45v. Findings and Conclusion………………………………………………….57

3. Bibliography…………………………………………………………………………...59

4. Annexure and Appendices……………………………………………………………..60

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COMPANY PROFILE

PEPSI CO MISSION

“To be the world’s premier consumer products company focused on convenient

foods and beverages. We seek to produce healthy financial rewards to investors as

we provide opportunities for growth and enrichment to our employees, our business

partners and the communities in which we operate. And in everything we do, we

strive honesty, fairness and integrity.”

PEPSI CO VISION

Pepsi Co Sustainability Vision

Pepsi Co’s responsibility is to continually improve all aspects of the world in which

they operate- environment, social, economic eventually leading for a better tomorrow

than today.

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PEPSI CO COMPANY

Pepsi Co is a world’s leader in convenient foods and Beverages, with more than $55

billion revenues in the year 2008.

The company consists of Frito-Lay North America, Pepsi Co Beverages North

America, Pepsi Co International and Quaker Foods America. Pepsi

Co brands are available in nearly 200 countries and territories and generate sales at

the retail level of about $92 billion.

Some of the Pepsi Co brand names are over 100 years old, but the corporation is

relatively young. Pepsi Co was founded in the year 1965 through the merger of

Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and Pepsi Co merged

with Quaker Oats Company, including Gatorade in the year 2001.

Pepsi Co offers products choices to meet a broad variety of needs and preferences

from fun-for-you items to product choices that contribute to healthier lifestyles.

Pepsi Co’s mission is “To be the world’s premier consumer Products Company

focused on convenient foods and beverages. They seek to produce healthy financial

rewards to investors as they provide opportunities for growth and enrichment to their

employees, their business partners and the communities in which they operate. And

in everything they do, they strive honesty, fairness and integrity.”

Share holders:

Pepsi Co (symbol: PEP) shares are traded principally on the New York Stock

Exchange in the United States. The company is also listed on the Amsterdam,

Chicago and Swiss stock exchanges. Pepsi Co has consistently paid dividends since

the corporation was founded.

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Corporate Citizenship:

Pepsi Co believe that as a corporate citizen, it has a responsibility to contribute to

the quality of life in their communities. This philosophy is expressed in their

sustainability vision which states: “Pepsi Co’s responsibility is to continually improve

all aspects of the world in which they operate- environment, social, economic

eventually leading for a better tomorrow than today.”

Their vision is to put into action through programs and focus on environmental

stewardship, activities to benefit society, and a commitment to build shareholder

value by making Pepsi Co a truly sustainable company.

Pepsi Co Head Quarters:

Pepsi Co World Head Quarters is located in purchase, New York, approximately 45

minutes drive from New York City. The seven building headquarters complex was

designed by Edward Durrell Stone, one of America’s foremost architects. The

building occupies 10 acres of 144 acres complex which includes the Donald M.

Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden

setting.

The collection of works is focused on major twentienth century art, and features

works masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander

Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenburg. The gardens

originally were designed by the famous gardener planner, Russell Page, and have

been extended by Francois Goffinet. The grounds are open to the public, and a

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

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PEPSI CO INDIA

Pepsi Co has a setup with fully integrated operation in India manufacturing, research

and development, marketing, franchise and distribution covering fruit/vegetable

processing exports, snacks, foods and beverages. It has set up a holding company

to accelerate growth through new initiatives and joint venture. Pepsi is fully

committed to India and the national objective of development of Technology and

accelerating export and employment. Since its entry in the year 1989 it has brought

in over US $ 400 million in foreign exchange as well as technology and knows how

and used its global network to develop value added local export business. It has not

repatriated any money by way of royalty, know how or dividend. Pepsi Co is

proposing to invest another US $ 150 million over the next 3 years in its core

business to augment employment and exports.

Pepsi Co business in India is highly employment oriented. The company currently

provides direct/indirect employment to 48000 persons in its entire management and

work forces in India. Its beverages business is very distribution intensive. Pepsi

services every outlet at least 2 to 3 times a week in summer. Many outlets require to

be serviced both in the morning and evening. It currently supply soft drink to

approximately 7,50,000 outlets in India.

A company sales man along with two helpers provides services to 40 outlets per

day. In addition to that Pepsi has 20 company owned factories in India and 21

factories owned by its Indian bottling partners. It has put up 8 green fields sites all in

the backward regions of different states. Pepsi Co India has 40 bottling plants in the

country. Pepsi Co generates direct employment for more than 4000 people in India

and indirect employment for 60,000 people. Pepsi sells more than 200 million crates

annually. Pepsi Co generates estimated annual retail sales of US $ 700 million in

India. Pepsi Co’s annual reports from India are worth over US $ 60 million Pepsi Co

has invested US $ 1.5 million investment to cooperatively develop a comprehensive

agro technology program in partnership with the Punjab government to help farmers

improve the quality and yield of their crops. Pepsi Co supports sea weed cultivation

projects in Tamil Nadu which provide members of women’s self help groups with

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sustainable livelihoods. It has established zero waste centers and PET (Poly Ehyne

Titrate) recycling supply chains.

Organizational values of Pepsi:

Pepsi Co Commitment

Their values reflect their aspirations. They express their values in the form of a

commitment. Their commitment is:

Sustained Growth:Sustain growth is fundamental to motivating and measuring their success. Their

quest for sustained growth stimulates innovation, places a value on results, and

helps them understand whether today’s actions will contribute to their future. It is

about growth of people and company performance. It prioritizes making a difference

and getting things done.

Empowered People:Empowered People means they have the freedom to act and think in ways that

company feel will get the job done, while being consistent with the processes that

ensure proper governance and being mindful of the rest of the company’s needs.

Responsibility and Trust:Responsibility and Trust form the foundation for healthy growth. It’s about earning

the confidence that other people place in them as individuals and as a company.

Their responsibility means they take personal and corporate ownership for all they

do, to be good stewards of the resources entrusted to them. They build trust

between themselves and others by walking the talk and being committed to

succeeding together.

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Guiding Principles of Pepsi Co:This means ways in which they carry out their commitment. They must always strive

to:

Care for customers, consumers and the world they live in. They are driven by an

intense, competitive spirit in the marketplace, but they direct their spirit towards

solutions that achieve a win for each of their constituents as well as a win for the

corporation. Their success depends on a thorough understanding of their customers,

consumers and communities. Caring means going the extra mile. essentially, a spirit

of growing rather than taking.

Sell only products, company can be proud of:The test of their standards is that they must be able to personally endorse their

products without reservation and consume them themselves. This principle extends

to every part of the business, from the purchasing of ingredients to the point where

their products reach the consumer’s hand.

Speak with truth and candor: They speak up telling the whole picture, not just what is convenient to achieving

individual goals. In addition to being clear, honest and accurate, they take

responsibility to ensure their communications are understood.

Balance Short Term and Long Term:They make decisions that hold both short-term and long-term risks and benefits in

balance over time. Without this balance, they cannot achieve the goal of sustainable

growth.

Win with diversity and inclusion:They leverage a work environment that embraces people with diverse backgrounds,

traits and different ways of thinking. This leads to innovation, the ability to identify

new market opportunities, all of which helps develop new products and drives thier

ability to sustain their commitments to growth through empowered people.

Respect others and succeed together:

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This company is built on individual excellence and personal accountability, but no

one can achieve their goals by acting alone. They need great people who also have

the capability of working together, whether in structured teams or informal

collaboration. Mutual success is absolutely dependent on treating everyone who

touches the business with respect, inside and outside the company. A spirit of fun,

respect for others and the value they put on teamwork make them a company where

people enjoy being a part of, and this enables them to deliver world-class

performance.

PEPSI CO’s QUALITY POLICY

“Make, sell, and deliver the beverages to the consumers as it was designed, in order

to drive brand preferences.”

According to Pepsi Co, Pepsi is one of the safest beverages people drink today.

They said they follow regulations laid down by the Indian government which are

among the worlds most stringent. Pepsi Co India is in full compliance of one quality

standards for Pepsi globally.

Indian regulations are among the world’s best. Over the past few years the soft drink

industry has worked with the Government of India, the scientific community and

NGOs to establish stringent science based regulations.

The new regulations for the carbonated soft drinks notified by the health ministry on

July 15, 2004 are comparable to the most stringent international regulations,

including that of the European Union. All Pepsi Co products in India meet these

regulations.

Their products comply with the Prevention of Food Adulteration Act (PFA) directive

on the use of water in the preparation of the soft drinks. They also comply with the

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Bureau of Indian Standards (BIS) for packaged drinking water. They use a six stage

water purification process to deliver this standard consistently.

Independent government data has shown that pesticide residues present in soft

drinks are at safe levels.

PEPSICO PRODUCTS IN INDIA:

Pepsi Co has a wide range in products in the FMCG sector. In the beverages sector

Pepsi Co is a leader in the market in India, delivering products that are of extreme

demand in the market.

During the summer time, which is considered as the season time the sales of Pepsi

Co is humongous. Since the beverages are basically soft Drinks, the sales is

maximum during this time.

Among the Soft Drinks the various Flavors that are provided the company are:

1) Pepsi Cola.

2) Pepsi Diet.

3) Mirinda Orange.

4) Mirinda Lemon.

5) Seven Up.

6) Seven Up Nimbooz.

7) Mountain Dew.

8) Slice.

9) Lehar Soda.

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10) Tropicana.

11) Aquafina Mineral Water.

All these flavors are provided at different sizes which gives the company greater

chances to tap the market. There are certain outlets which prefer certain quantity of

flavors, for this reason the quantities vary.

All these beverages are packed & supplied in the following forms:

PET (Poly Ethyne Titrate)

RGB (Returnable Glass Bottle)

CSD (Carbonated Soft Drink)

BSD (Bottled Soft Drink)

LRB (Light Refreshing Beverages)

PEPSI CO MANAGEMENT HEIRARCHY:Vertically moving from Top to Bottom the management hierarchy follows as under:

MUM (Multi Unit Manager)

HOS (Head Of Sales)

TDM (Territory Development Manager)

ADC (Area Development Coordinator)

ME (Marketing Executive)

CE (Customer Executive)

PSR (Pre Sales Representative)

Salesman

The above mentioned hierarchy is maintained in India and all over the world. This is

the way in which the product is reached to the customer.

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Concept of VISI Coolers:

VISI Coolers are actually the Fridges which are provided to the customer so as to

satisfy the need of the customer and increasing the sales. The simple reason for the

increase of sales is that since the VISI Coolers will be present the customer will have

a continuous idea of the sales and will regularly purchase the flavors. This would

definitely increase the sales and customer satisfaction.

There is an agreement which is signed by the customer stating the various

conditions beneficial for the increase of sales. Among all the most important is

PURITY. Purity means apart form the flavors given by PEPSI CO no other flavor

would be kept in the cooler. These VISI Coolers come in different sizes and the

company decides the size depending upon the capability of the customer.

The various sizes of VISI Coolers are:

220 liters.

330 liters.

400 liters.

600 liters.

1200 liters. (Double Door)

The tracking of the progress of the company is done by comparing the sales of a

particular month with the sales of that particular month in the past year. This will give

a clear idea about the progress of the company in one year.

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INDIAN BEVERAGE MARKET

Beverage market in India is divided into Alcoholic beverage and Non Alcoholic

beverage.

1) Alcoholic Beverage Market:

Introduction:

In India the total alcohol production is doubled to 800 million liters between 1993 and

1996. The unrecorded consumption was estimated to be more than 1200 liters in

India in the recent years. A study carried thier in India reported that drinking families

from lower income groups spend 15%-45% of their incomes on alcohol.

Production Area:

Haryana, Punjab, Rajasthan, Uttar Pradesh, Kerela and mostly all Indian

metropolitan cities have alcohol industry establishment. The southern region of India

has abundant consumptions of alcohol.

Growth Promotional Activities:

In earlier years the policy of the Indian government was to discourage the

consumption of alcoholic beverage. This even went so far as to involve total

prohibition in some states. However, the resulting problems of illicit distillation, the

leakage of government excise revenue and the problems involved in enforcement,

led to review of this policy. The importation of portable alcohol is subject to

government licensing. But, again the government is striving hard to discourage this

practice as it has stopped the advertising of alcohol products.

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Type:

Liquor manufactured in India is categorized as beer, country liquor and Indian Made

Foreign Liquor (IMFL). IMFL production includes wines, whisky, rum, vodka, zin and

brandy. Draught beer and canned beer has been recently introduced and has done

well in the places where introduced.

WINE

Introduction:

Both the Indian wine market and the indigenous wine industry are in their nascent

stages but growing by leaps and bounds. Fifteen years ago, there was no locally

made wine that was drinkable. Now, there are three significant wine makers, all

family owned business, the Grovers, the Chou gules and the Samants. There is also

great interest in wine makers from France, Italy, Australia, South Africa, America and

Chile to enter the Indian Market.

Production Area:

The Indian wine market mainly in cities is growing by leaps and bounds. The biggest

consumptions are in Mumbai, Delhi, Bangalore, Pune and the foreign tourist

dominated states like Goa. Some Indian wine makers have also started importing

foreign made wine and bottling and selling it here in India.

Growth Promotional Activities:

With the government planning to showcase “wines of India” across the globe the

agriculture and Processed Food Products Export Development Authority (APEDA) is

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working out the strategy and the campaign will be finalized soon. India is exporting

its wine to US and Indian wines were also being served in restaurants both western

and Indian. The Kingfisher brand of beer is widely consumed in the US, Britain, New

Zealand and the South East Asia and would also be included in the promotional

campaign. The promotional strategy includes analyzing the internal support

mechanism including easing tariff barriers for liquor. The promotional campaign

targets the U.S, the European Union, South Africa and Southeast Asia in a major

way.

Highlights:

The market for wine in India saw a significant growth between “1998-2003” growing

at an average annual rate of 22 %. The biggest consumers of wine in India in 2003

were people aged 25-34. The age group that consumes least wine was the 55+

group.

2) Non Alcoholic Beverage Market:

COFFEE:

India produces 260 million Kg of coffee per year. India coffee production has a yield

of 800-900 Kg per hectare, which is low compared to the world average of 1,100 Kg

per hectare. Over the year 1998-99 the yield has increased from 740 Kg per hectare

to more than 850 Kg per hectare in 1999-2000. The area under coffee cultivation is

approximately 3.1 lakh hectare.

Production Area:

In India, coffee bean cultivation is largely confined to the hilly region of the southern

states of Karnataka, Tamil Nadu and Kerala.

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Growth Promotional Activities:

Only one fifth of the coffee bean produced in India every year is consumed in the

domestic markets while rest of it is exported. Most of the exports are to Russian

Federation, Germany, Italy and U.S. Earlier coffee growers with a total coffee

cultivation area of above 10 hectares were required to sell a minimum of 30 % of

their production to the coffee board but this quota has now been abolished to

encourage exports and now growers can export 100% of their production. In order to

boost up the consumption of coffee, coffee industry has started emphasizing on

three channels of distribution namely Café chain, vending machines and to drink

products.

Type:

Coffee market can be segmented as instant and filter coffee. Filter coffee can further

be segmented into pure and chicory blend coffee.

TEA

Introduction:

India is the largest producer and consumer in the world. India also leads in global

R&D in tea industry. India is the largest manufacturer and exporter of tea machinery.

Other major tea producer nations source equipment and technology from India. The

tea plantation was started in the middle of 19 th century under British management.

Farm ownership however is fragmented. The annual tea leaf production has been

around 800 Mn Kg for the last two years.

Production Area:

Tea production in India is concentrated in the North east region i.e., Assam,

Meghalaya, and West Bengal etc. In the south region of Kerala and Tamil Nadu

produces tea. North eastern region account for 76% of the total tea production. In the

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North east the yield is lower but the quality of tea leaf is superior. The foothills of

Darjeeling stretching along the Bhutan border up to the Assam border and the areas

of Arunachal Pradesh, Meghalaya, Nagaland, Orissa, Sikkim and Uttrakhand have

abundant tea plantation.

Types:

Darjeeling tea, Assam tea, flavored tea, green tea, Nilgiri tea, whole leaf tea, broken

tea, fanning and dust leaf tea and granular tea.

Packaging:

Total domestic market amounts to 870 thousand tones. The packaged segment

accounts for an estimated 237 thousand tones. The value of the packaged tea

market comes to round Rs 33 billion. The Compounded Annual Growth Rate

(CAGR) 48:52 from 1995 to 51:49 in 2000. The tea market can be divided into

various segments on the basis of the pack size. Available pack sizes range from 50

grams to 2 Kg. the contribution of 200/250 gram pack is 38% followed by 50 gram

pack with 31% contribution.

Real India shows preference for small pack size, which can be seen from the

absence of 1 Kg and 2 Kg packs from the rural market. The smaller packs of 50

grams and less exhibit an increasing trend with their respective contributions

increasing from 32% to 45% from 1995 to 2000 respectively.

Whereas in urban India the preference is for 200/250 gram which contributes 48% to

the total market. The urban-rural split has changed form the pack types prevailing in

the industry today are jars, bottles, boxes, sachets, pouches, strips, envelops and

tins. Poly pouches introduced in 1985 has captured 12 % of the tea market from the

loose tea segment as they were not only cost effective, but were also effective in

retaining freshness.

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The number of players in the organized sector is 40 having 80 brands in all. The

number of packs has increased from 897 to 1025. There are 17 pack types and 21

pack sizes prevailing in the category.

MILK

India today is the largest producer of milk in the world. Its production has touched 83

million tones. It is a sector which is essentially governed by the cooperative

structure, harnessing millions of farmers across the country. Only 12% of the milk is

packaged and branded. The rest is loose or converted into milk products, both by

organized and unorganized sector.

Milk and its vitamins are likely to top the diet charts of Indians owing to larger

availability, changing life style and higher income.

SOFT DRINKS:

Soft drink market size for is around 270 million cases (6480 million bottles). The

market witnessed 5-6% growth in early 90’s. Presently the market growth rate of 7-

8% per annum compared to 22% growth rate in the previous year. The market size

for the next financial year is expected to be 70000 billion bottles.

Soft Drink Production Area:

The market preference is highly regional based. While cola drinks have main

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

flavored drinks are popular in the southern states. Sodas too are largely in southern

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states besides sale through bars. Western states has preference towards mango

flavored drink.

Growth Promotional Activities:

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

industry a boost and promote the Indian brands internationally, although the import

and manufacture of international brands like Pepsi and Coca-Cola is enhanced in

India.

Types:

Soft drinks are available in glass bottles, aluminum cans and PET (Poly Ehyne

Titrate) bottles for home consumption. The glass bottle segment contribution is

highest with around 82% followed by PET with 12%. The tetra pack effort to boost

bottom lines as top lines continues to struggle.

Foundations also display them in disposable containers. Soft drinks market can be further divided into carbonated and non-carbonated soft drinks. Pepsi, lemon and oranges are carbonated while mango drinks comes under non carbonated category. The market can be segmented on the basis of types of products into Cola products and non cola products. Pepsi, diet Pepsi, Pepsi Blue comes in the category of Cola products while orange, lime, dew and mango comes under non-Cola category.

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Pepsi logos

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The battle of two giants

• Coke and Pepsi are two giants in the soda industry, and there has been competition between them for years.   People disagree what tastes better of the two, and there are many people who are unsure. However, Coke and Pepsi will always be loved.

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Brief Description of Varun Beverage Limited

The group is India's leading supplier of carbonated and Non-Carbonated soft drinks under Pepsi brand. It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Varun Beverage’s services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to expertise and leadership in the fields of education, food and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only.

Varun Beverages Ltd. is the flagship company of the group.

The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 70+ Pizza Hut Restaurants & KFC Restaurant under its company.

They diversified into education by opening thier first school in Gurgaon under management of Delhi Public School Society. The schools of the group are run under a Registered Trust namely Champa Devi Jaipuria Charitable Trust.

Companies are medium sized, professionally managed, unlisted and closely held between Indian Promoters and foreign collaborators.

The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company.

Beverages

Indian Beverages industry’s size is Rs. 8000 Crores and it is dominated by two players viz Pepsi & Coke only. This high profile industry has lot of potential for

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growth as per capita consumption in India is 8 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal.

The RKJ group is India's leading supplier of retailer brand carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra.

The complete new plant Varun Beverage Ltd. has structured in plot number 477-479,107 K.M. Stone Agra –Delhi National Highway, village-Dautana,Tehsil-Chatta , Distt. -Mathura, Uttar Pradesh.

This is not only the bottling plant here PET bottles are also manufactured. The present filling capacity of this plant is 1000 bottles per minutes with two lines. The two lines are glass bottles lines. One more line is of pet bottled and its capacity is of 80 bottles per minute.

The annual capacity of this plant is around 88 Lakhs create of bottled soft drink. The end product of this plant is bottled carbonates soft drink. These beverages marketed under different brands named as pepsi, Mirinda Lemmon, Mirinda Orange, 7Up & 7up nimbooz, Lehar Soda etc.

Varun Beverages is growing to new height; annual turn over of the plant is about 100 crores.

The group manufactures and markets Carbonated and Non-Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavor’s and sub-brands are Pepsi, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, Slice Orange, Evervess Soda , Aquafina and 7up nimbooz.

It has the license to supply beverages in the territories of East Delhi, Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in total 9 bottling plants in India & Nepal and is responsible for producing and marketing 30% of Pepsi requirement in India.

Food

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The last decade has been a period of dynamic growth for non-alcoholic drinks and has

witnessed completely new segment of the food market in India taking shape. To capitalize on the RKJ group’s significantly important relationship with Pepsi Foods, it decided to venture into Foods sector, which is second largest business for Pepsi all over the world. Fast food is the most happening things across the world.

The group became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. Out of 56 operational Pizza Hut restaurants in the country 27 restaurants are owned and run by its company. These restaurants are located at Defence Colony, Alaknanda, Vikas Puri, Green Park, Karol Bagh, New Friends Colony, Connaught Place, Basant Lok, Greater Kailash, Jaipur (2), Agra, Noida (2), Faridabad (2), Chandigarh (2), Ludhiana, Jallandhar, Amritsar, Gurgaon (3), Kushambi(Ghaziabd) and Kolkatta (2).

All these restaurants are making good profits & are dominating the market. The name of business entity is Devyani International Private Limited.

Ice Creams under “Candia” brand

The group has its presence in the Ice Cream segment since 1991, when it started manufacturing and marketing Ice Cream under the brand name of “Gaylord” in the state of U.P.

During 1996 it sold its brand to Brooke Bond and started supplying Ice Cream to Hindustan Lever as their Ice Cream sourcing plant. After working for 10 years in this field, during 2003 it has launched its own brand in technical and marketing collaboration with Candia of France.

Vision

Company boasts of “Being the best in everything they touch and handle”.

Mission

“To be popular centric, customer focused and process driven operations, striving for excellence, day in day out with a best year ago and turn around mentality…”

Their Success

Production of innovative, high quality retail branded beverages combined with world-class packaging.

Driven by a management team with a relentless focus on achieving superior customer service, driving earnings improvement and increasing shareholder value.

RKJ’s People

At RKJ they are creating an environment where their employees enjoy a greater degree of empowerment - both individually and in their work teams.

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Their employees are equipped with the necessary tools, training and management

backup for strong performance and accountability, as well as with an environment of open communication and involvement.

Organisation Structure

Location of Bottling Plants of Pepsi in India

The bottling plant of the group in India and Nepal are located as following sites:

Greater Noida Kosi (Mathura)

Chaupanki(Bhiwadi)

Alwar

Jodhpur

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Chairman

President

Unit Manager

Territory Development Manager

Area Development Coordinator

Helper

Route Agent

Distributors

Customer ExecutiveCustomer Executive

Distributors

Route Agent

Helper

Jaipur

Goa

Guwahati

Nepal

West Bengal

INGREDIENTS OF SOFT DRINK

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They only use the finest ingredients to make Pepsi cola products. To guarantee their consumer consistent quality, each ingredients must pass their high standards, vigorous quality control tests and strict bottling procedures.

Pepsi cola product contains natural flavor, including extracts of the kola nut ND flavour oil derived from natural sources such as citrus and other fruits, adds colour and flavour to their colas. Other ingredients add a refreshing taste: phosphoric acid in colas; citric acid and sodium citrate in mountain dew, slice and diet Pepsi.

Every can and bottle of Pepsi cola products has a nutrition facts panel, which shows the number of calories and other nutrition per serving. There is essentially no fat in any Pepsi cola product. The main ingredients found in Pepsi cola product include carbonated water, carbohydrates, sugar, sodium, potassium and caffeine. For a complete breakdown by ingredients by product, see their product information for Pepsi, diet Pepsi, mountain dew, slice and Aquafina. Some of them are described below:

Ascorbic acidAnother name of ascorbic acid is vitamin –c. the ascorbic acid used in their carbonated soft drinks function as an antioxidant to protect the flavour, colour ,and taste. In some beverages they also add it to provide the nutritive value found in vitamin –c

Aspartame

Asparatame is a sugar substitute used in their diet beverages and many other food products. Aspartame is made of the same building blocks as protein, so it is considered a “nutritive sweetener”, but the very small amount used in diet drinks contribute no calories.

Blue1

Blue 1 is a FDA approved food coloring used in a variety of product such as jellies, condiments, puddings, and beverages.

Brominated vegetable oil (BVO)29

BVO has been used by the soft drink industry since 1931 /. It is a widely used food additive that has been extensively tested and approved by the U.S food & drug administration.

BVO is derived from soyabean oil that has been modified in order to keep the flavouring oils well blended.

caffeinecaffeine provides a characteristic flavour to soft drinks. Caffeine is naturally found in coffee, tea and chocolate. For comparison an 8-oz cup of brewed coffee can have from 85-120 mg of caffeine on average, while on 8-oz. serving of Pepsi contains about 25mg of caffeine. an 8-0z .cup of coffee therefore contains three four time as much caffeine found in a caffeinated colon.

There is no caffeine in caffeine free Pepsi, caffeine free diet Pepsi, Aquafina, slice, mountain dew or mirinda.

caramel

Citric acid can be in citrus fruits such as lemons and oranges. citric acid is used to bring out the flavour of other ingredients and imparts a tang or tartness to beverages. citric acid is not vitamin c. the same fruits that have citric acid often have vitamin c but the technical name for vitamin c is ascorbic acid.

Natural Flavourings

Natural flavourings are flavouring ingredients that are the essences or extract derived from natural plant sources.Natural flavouring is what gives a product its distinctive flavour and taste. Pepsi products are the only products with these distinct flavour blends, which are considered part of their secret formula. The term natural flavour is defined by the food and administration and all of their natural flavourings meet this definition.

Phosphoric Acid

A small amount of phosphoric acid is added to their drinks. However, it is greatly diluted and is fully approved by the U.S.Food and Drug Administration for use in soft drinks. Phosphoric acid provides tartness, essential to a well-rounded flavour.Phosphorus, like calcium, is an essential mineral in bone. It is widely distributed in the food supply, including fish, milk, meat, eggs and cereal grains.

Potassium

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Potassium is a Pepsi cola product may come from water as part of certain ingredients .for example; potassium may be combined with benzoic acid, which helps prevent spoilage and flavour changes. Potassium is an electrolyte that helps meet the mineral needs of active people.

Red 40

Red 40 is a FDA –approved food colouring used in beverages.Sodium

All of their product are of low sodium and contain less than 110 mg per eight fluid ounce serving. A number of beverages have less than 35 mg sodium per serving, so they are considered very low sodium products.

Sugar

Regular soft drinks and sports drinks are sweetened with sugar. there are many type of sugar available today .in soft drinks and sports drinks , the sugar is primarily high fructose corn syrup , which comes from corn.

Total carbohydrates

Total carbohydrates includes the sugar and any carbohydrates like parts of ingredients such as organic acid .although diet drinks may have no sugar , they may contain more than half gram of carbohydrates.

Promotional activities

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Sales promotion This is the most frequent used form of promotion which is used to increase the sale of the selected product. These promotions are used from time to time depending upon the sale of the product. If the sale of any particular product decline or shows a declining trend then a suitable sales promotion campaign is launched to increase the sale of that product.

Advertising

Advertising is done by PepsiCo. COBO (company owned bottling operations) and FOBO (franchise owned bottling operations) have no say in the advertising campaign and their planning. The advertising account of Pepsi is handled by JWT in association with the corporate office of PepsiCo India.

Sales force

There is a dedicated sales force at every C&F and distributor point .every salesman is assigned a specific route that he has to cover every day. The salesman has to take care of all the shops on the designated route and address and inform about any issue any retailers has on the route. The retailers regarding the daily schemes and the details of all the promotion schemes launched from time to time .these including informing the retailers about the promotional schemes, registration for the scheme , terms and conditions of the scheme etc. the salesman is also assigned the task of registration maximum possible outlets on his assigned route.

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Promotion

Sales promotion

Advertising

Sales force

Public relation

Direct marketing

Public relation

This one important aspect related to the success of PepsiCo in India .Pepsi believes in maintaining good and health relation with all its channel partners and every other person in value chain. This has helped Pepsi in maintaining an extremely competitive position in the market in spite of the continuous onslaught from coca cola.

Schemes of volume purchase

Cash discount Card discount (sampling)

Display material

Sticker Banners G.S.boards DPS. Boards Racks Counters Umbrellas

Advertisement and add concept

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Advertisement are cost effective means to communicate messages and ideas to build brand preferences and awareness and it is one of the most important tools which a company used to direct persuasive communication to directive buyers in public or to educated people to avoid hard drink and so on.The basic objective of advertising sales promotion expenditure have been increasing as a percentage of budget expenditure annually and the growth is likely to continue in future . Celebrities signed by the PepsiCo are as follows:

For Pepsico.

Cricketers;

Sachin TendulkarRahul DravidM.S. DhoniMohd.KaifYuvraj SinghHarbhajan SinghSourabhGangulyZaheer Khan AjitAgarkar

Cine Stars

KareenaKapoorShahrukhKajolAdnan SwamiFardeen KhanAmitabh BachchanGovindaRani Mukherjee.

Tennis stars

Leander PaesMahesh Bhupati

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Football players

Cyrus Broacha

Baichung Bhutia

Key elements of the trade

Jo Dikhta Hai who Bikta Hai: This is a company slogan , it is to increase the visibility of product, the company stresses more on increase the number of outlets than on the volume of the sales. That is the reason of the company providing visibility of sales. That is the reason of the company providing visibility courses to the shopkeepers.

Channels: Channels are independent organization involved in the process of making a product or service available for use or consumption. There are different intermediaries in channel that facilities the availability of goods to the consumers.

Coverage: Two things come under market coverage. These are market research and market Penetration. Market reach can be termed as accessibility and market penetration can be termed as frequency.

Description of the assigned task and responsibilities

“EXPANSION AND DISTRIBUTION OF PEPSI CO among the corporate in Delhi”

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Task and responsibilities

Comparative analysis between ready sale and pre sale booking system.

Retailer’s perception and response to sale booking system.

To evaluate performance of PSR.

To find out the problem retailer are facing.

Know about the stock position of Pepsi brand and its competitors at different outlets.

To increase the per day sale of Pepsi brand in crates and its competitors.

To know the distribution channel of Pepsi.

Study of the VISI-PURITY campaign.

Performance management of employee

Nature of work and working hours

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My job was to check PSR’s activities of whole day. PSR has to convince the retailer to take their product. He replaces the leaked bottles. I have to make a full day report of his activities and have to submit it to the supervisor.

Timing of my training was 8 A.M to 6 P.M, First 20 days I visited different retailers with different PSR,s . After 20 days I went with salesman who delivers orders to the retailers, last 20 days I visited depot to check pre sale activities such as demand coming from the market about specific product of Pepsi. Some of the major shops I had visited are;

Name of the shops :

Aggarwal sweets

Nitu bakers

Uncle cake

Vinayak restaurant

Shubham restaurant

Own choice

Shivam store

Raj bakery

INTRODUCTION OF THE RESEARCH TOPIC

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Modern age is full of competition. Today only way of success is your continuous efforts toward the growing market needs and in satisfying customers. It is the market job to know what the market speaks.

The ever changing needs of the customer through market research and adopt them fruitfully. It is necessary for all the companies to make policies according to the customers and the government. In order to succeed for any organization has to target its customers needs, to create a culture in the organization i.e. market conscious & responsive to customer need.

Soft drinks industries have become big business in India in recent years. Soft drinks are a typical consumer’s product purchased by individual in order to primarily quench their thirst and also for refreshment.

The soft drink business under went major change with the entry of PEPSI and re-entry of COCA COLA in India in the late 80s when parley with brand like thumsup, Limca & gold spot was a clear leader .COCA COLA took up the product line of parley in 1993-94, today both brands are the favourite soft drinks of Indians.

Indian beverages industry’s size is Rs 8000 crore and it is dominated by two players viz Pepsi& coke only. This high profile industry has a lot of potential for growth as per capita consumption in India is 8 bottles a year as compared to 20 bottles in srilanka , 14 bottles in Pakistan, while 12 bottle a person in Nepal.

Research objectives

The main objective of research in this project was to get the detailed analysis of the market position and sales promotion of Pepsi.

Research methodology

INTRODUCTION

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Research in common refers to a search of knowledge. One can also define research as a scientific & systematic for pertinent information of a specific topic. It is the pursuit of truth with the help of study observation, comparison &experiment. Every research methodology includes a research design which may be defined as the arrangement of condition of collection and analysis of data in a manner that aims to combine relevance process with economy in procedure.

Descriptive research methodology

In my market survey descriptive research process was carried out to describe the market characteristics, consumer profile, distribution strategies, and market potential.

Sample size for survey

The sample size collected for a various objectives where, from the total number of outlet the sample size determined was 100

Data collection method

The data collection mode used to get the desired information from primary sources & unstructured direct interviews & instrument used in the questionnaire. This research was collected through two deferent modes, namely

Primary data collection

Secondary data collection

Primary data collection: primary data was collected through questionnaires surveys and direct interviews.

Sampling plan

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The samples were on the judgment and convenience. A sample size of 100 respondents was taken. The sampling unit was retailers of Delhi for which this sample size was considered a fair of retailers spreads over the entire area of the distributor.

Limitations of study

This study was done in Varun Beverages Pvt.Ltd. Delhi.The survey covers a wide range of activities and factors, which influence the customer to buy the Pepsi product.

The survey suffers from following limitation:

The major limitation of project work under study is time, since it is to be completed during 16th may to 16th July and this time period may not be sufficient to undertake a comprehensive study.

The sample selected is not purely random sample but it is convenient sampling.

Being a project student, it created some hurdles in getting the true feedback from the respondent.

The geographical slope of my survey was limited to east Delhi only. The sample size of 95 respondents was taken to represent total retailers of

East Delhi zone. Time and money did not allow researcher to have a large sample and also to

manage a large sample would also be difficult by researcher alone. It is very difficult to influence and get right answer from old mentality retailers.

.FINDINGS OF DISTRIBUTION NETWORKS

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After visiting nearly 760 outlets I have found there are some common problems of retailers, which are:

1. The problem is of non- availability of 7up and dew flavours of Pepsi.

2. Every retailer wants that vehicles should come in the morning so that they will keep the bottles in the fridges as soon as possible.

3. One of the major problem is that most of the chilling equipment is not in good working conditions. Like VISI coolers.

4. Majority of retailers is asking about boards, openers,& counters.

5. Delay in replacement of burst bottles.

6. Some shopkeepers don’t get gift which are offered by special volume of package.

7. Some shopkeepers do not get scheme on time.

8. Some shopkeepers require signage.

9. All the retailers appraised the regular supply of the company’s products.

SWOT ANALYSIS

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STRENGTH

Pepsi is a well established co. , so it has a good reputation in the market.

Advertising of pepsi is much more aggressive than coke.

Backed by the huge promotion at national &intertnational level.

Pepai believe in jodikhatahaiwobiktahai so, it has adopted intensive distribution channel strategy.

Pepsi had made contract with many metro outlets to sell only pepsi product.

WEAKNESS

Non-fulfillment of commitments on time, made to shopkeepers.

Incompetent salesman who do not give the scheme in the market regularly.

Unavailability of various demanded flavour like mountain dew,7up.

Not proper control over distribution network.

Not regular keeping touch with customer by other than salesperson.

At the time of selling the product there is a communication gap between customer and officers.

OPPORTUNITY

May tie up or liaison with major showrooms, computer centres &restaurants.

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Huge publicity of lemon Miranda / slice has created a lot of demand.

Company has brand equity in the eye of the customers , so its new products can easily penetrates in the market.

Untapped market.

Many new opening outlet to convince the customer in trading area by offering attractive schemes.

Gaining more market share with newly launched pepsico product after consideration of customers preferences.

THREAT

Threat of competitors new brand entry in the market in near future.

Restrictions made by govt. agencies that soft drinks are harmful & non-nutritive.

Natural juice are now available whose price are less or same as soft drinks. Many new product which is used by customers as substitutes .ex-mango sip ,

nimboo paani.

RETAILERS QUESTIONNAIRES

1) What method do you usually use to place your order?

a) Ready sale booking system

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b) Pre sale booking

c) Phone

2) How frequently you order?

a) Daily

b) Alternate

c) Weekly

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3) Accuracy of order fill?

a)100%

b)100-80%

c)50-80%

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d) Below 50

4) After implementation of pre sale order booking system how many times in

aweek it happened that you ran out of stock of particular product of pepsi?

a)Never

b)1-2 times

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c) More than-2

5) PSR’S way of telling about schemes and other information?

a) Poor

b) Average

c) Good

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6) Deliverymen’s professionalism (service & behaviour)?

a) Unprofessional

b) Formal

c) Very professional

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7) Do PSR’S give you complete information of new product , daily schemes and

other promotional offers?

a)Daily

b)Weekly

c)Occasionally

d)Rarely

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8) which brand is in demand ?

a) Pepsi

b) coke

c) both pepsi and coke

d)can’t say

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9) Which brand of soft drink do you sella) Only pepsi

b) Only coke

c) Both

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10) Is there increase in sales due to display of the racks?

a) Yes

b) No

c)Can’t say

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11) Are your customer satisfied by pepsi schemes?

a) Yes

b) No

c)Can’t say

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12) Is the brand of pepsi is high on your sale?

a) Yes

b) No

c)Can’t say

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Name of the retailer :Shop name :Phone no. :

Promotional campaign

“YEH HAI YOUNGISTAN MERI JAAN ’’

Conclusion and recommendation

• 70% of the vendors place ready sale order ,. The company should promote the PSR’S for making pre sale booking , which will help the company for finalizing and meeting the demand and supply chain.

• Almost 7% of the retailers are satisfied with the supply chain management.

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• Most of the time retailers run out of the stock for one or the other product , so the company should encourage the vendors for placing pre sale order so that both the company and retailers are in comfortable position.

• With most of the retailers not satisfied with the extent of communication PSR on the end of company is making with them , the company needs to enhance the communication with the channel partners.

• With retailers finding 33% of the sales force as unprofessional,its high time company provide its sales force with some training.

• Almost 55% retailers complained about not getting any or little information about the promotional offers, the company needs to rework on its communication strategies.

• It was also seen that pepsi brands is better than coke. but it is Thumsup which is making the major difference in the market.

The sales and distribution network of pepsi is very strong and almost flawless.

• Promotional activities within every territory are under the territory office and the officials of that office are responsible for the effectiveness and successful implementation of these campaigns.

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BIBLIOGRAPHY

WEBSITES :

www.pepsi.com

www.pepsico.com

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www.jaipuriagroup.com

Books:

Marketing management – radha swami

Research methodology-C.R Kothari

Principles of marketing-p .kotler

News papers:

The Times of India

The Economics times

Appendix

Retailer’s Questionnaire:

1) What method do you usually use to place orders?

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a. Ready sale booking

b. Pre sale booking

c. Phone

2) How frequently you order ?

a. Daily

b. Alternate days

c. Once in week

3) After implementation of pre sale order booking system how many times in a week it happened that you ran out of stock of particular product of pepsi?

a. Never

b. 1-2 times

c. More than 2

4) Accuracy of order fill ?

a. 100%

b. 100 – 80%

c. 50 – 80%

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d. Below 50%

5) Deliverymen’s professionalism

a. Good

b. Bad

c. Average

6) Ever missed your order Yes/No if yes than what may be main reason?

a. Wrong order

b. Sudden change in weather

c. Change in schemes

7) Are you satisfied with the PSR’s order taking timing? At what time you want him to come and take order .

a. YES

b. NO

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c. TIME after 2- 3pm

8) DPSR’S way of telling about schemes and information

a. POOR

b. AVERAGE

c. GOOD

9) Do PSR’S give you complete information of new products, daily schemes and other promotional offers ?

a. DAILY

b. SOMETIMES

c. NEVER

10) IS the products of Pepsi is high on the sale?

a. Yes

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b. No

c. Cant say

11) Among Pepsi and coke whose demand is more high?

a. Pepsi

b. Coke

c. Both

d. Cant say

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