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Tuesday, January 26, 2010

PEPSI(MARKET ANALYSES OF PEPSI)

CONTENTS

1. DECLARATION

2. ACKNOWLEDGEMENT

3. PREFACE

4. COMPANY INTRODUCTION

5. COMPETITION OF PEPSI Vs COKE

6. ENTRY OF PEPSICO IN INDIA

7. RESEARCH DESIGN

8. RESEARCH METHODOLOGY

9. OBJECTIVE

10. SURVEY BY ISSUING QUESTIONNAIRE-

11. SUMMARY AND CONCLUSION

12. SWOTANALYSIS

13. RECOMMENDATION

14. ANNEXURE

15. BIBLIOGRAPHY

16. QUESTIONNAIRE
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PREFACE

Modern organizations are highly complex and dynamic systems. They operate under very

turbulent social economic and political environment. They are required to reconcile several

incompatible goals. Conflicting roads and divergent interests. They are also fraught with use

risk and uncertainties hence tactful management of such organization to plan execute,

guide, coordinate and control the performance people to achieve predetermine goal.

Management has to keep the organization vibrant moving and in equilibrium it has to

achieve goals which themselves are changing it is therefore a problem highly complex and

ticklish. To tackle these problems, information plays an important role. Marketing research

is the appropriate tool to get most useful information about the market. This information will

asset to acquire and analysis information and to make suggestions to management as to

how marketing problems should be solved.

The marketing research is the process which links to manufactures, dealers and individuals

through information an important part of curriculum of MBA programe is the project taken

by student in any business organization. After completion of IInd semester of the

programme. The objective of this project is to enable the student to understand the

application of academies in the real business life. I am fully confident that this project will

be extremely useful for the management.

COMPANY INTRODUCTION

PepsiCo is a world leader in convenient foods and beverages, with 2005 revenues of more

than $32 billion and more than 157,000 employees.

The company consists of Frito-Lay North America, PepsiCo Beverages North America,

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

nearly 200 countries and territories and generate sales at the retail level of about $85

billion.

Many of PepsiCo's brand names are more than 100-years-old, but the corporation is

relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-

Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,


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including Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-

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

PepsiCos mission is 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 for

honesty, fairness and integrity.

Shareholders

PepsiCo (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, Swiss and Tokyo

stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was

founded.

Corporate Citizenship

At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to

the quality of life in our communities. This philosophy is expressed in our sustainability

vision which states: PepsiCos responsibility is to continually improve all aspects of the

world in which we operate environment, social, economic -- creating a better tomorrow

than today.

Our vision is put into action through programs and a focus on environmental stewardship,

activities to benefit society, and a commitment to build shareholder value by making

PepsiCo a truly sustainable company.

PEPSICO HEADQUARTERS

PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes

from New York City. The seven building headquarters complex was designed by Edward

Durrell Stone, one of Americas foremost architects. The building occupies 10 acres of a 144

acre complex that includes the Donate M. Kendall Sculpture Gardens, a world acclaimed


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sculpture collection in a garden setting.

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

masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto

Giacometti, Arnaldo Pomodoro and Class Olden berg. The gardens were originally designed

by the world famous garden planner, Russelll Page, and have been extended by Francois

Goffinet. The grounds are open to the public, and a visitors booth is in operation during the

spring and summer.

PepsiCos beverage business was founded at the turn of the century by Caleb Bradham, a

New Bern, North Carolina druggist, who first formulated Pepsi Cola. Today consumers

spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products

including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug Brands-

account for nearly one-third of total soft drink sales in the United States, a consumer

market totaling about #60 billion.

Peps-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled

water, Fruit works and all Sport.

In 1992 Pepsi-Cola formed a partnership with Tomas J. Lipton Co. today Lipton is the

biggest selling ready-to drink tea brand in the United States. Pepsi-Cola also markets

Frappuccino ready-to drink coffee through a partnership with Starbucks.

In 2001 so be became a part of Pepsi-Cola. So be manufactures and markets an innovative

line to beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and

other beverages with herbal ingredients.

Outside the united states, Pepsi-Cola soft drink operations include the business of Seven-Up

International. Pepsi-Cola beverages are available in about 160 countries and territories.

Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada.

Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the

United States, major products include Mirinda and Pepsi-Cola North America includes the

United States and Canada. Key international markets include Argentina, Brazil, China, India,

Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. Pepsi-Co

Beverages International also produces, sells and distributes Gatorade sports drinks as well

as Tropicana and other juices internationally.


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Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola

bottlers and food service customers. This advertising. New advertising and exciting

promotions keep Pepsi-Cola brands young.

The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The

company also provides fountain beverage products.

Pepsi-Cos snack food operations had their start in 1932 when two separate events took

place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product

a corn chip and started an entirely new industry. The products was Fritos brand corn

chips, and his firm became the Frito Company.

That same year in Nashville, Tennessee, Herman W. Lay started his own business

distributing potato chips. Mr. Lay later bought the company that supplied him with product

and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company

merged in 1961 to become Frito-Lay, Inc.

Today, Frito-Lay brands account more than half of the U.S. snack chip industry.

PepsiCo began its international snack food operations in 1966. Today, with operations in

more than 40 countries, it is the leading multinational snack chip company, accounting for

more than one quarter of international retell snack chip sales. Products are available in

some 120 countries. Frito-Lay international markets include Australia Brazil, Mexico the

Netherlands, South Africa the United Kingdom and Spain.

Often Frito-Lay products are known by local names. These names include Matutana in

Spain, Sabritas and Gamesa in Mexico, Flma Chips in Brazil, Walkers in the United Kingdom

and others. The company markets Frito-Lay brands on a global level, and introduces unique

products for local tastes.

Major Frito-Lay products include Ruffles, Lays and Doritos brands snack chips. Other major

brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips,

Rold Gold pretzels and Sun Chips multigrain snacks. Frito-Lay also sells a variety of snack

dips and cookies, nuts and crackers.


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GATORADE & TROPICANA

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. The

company entered the concentrate orange juice business in 1949, registering Tropicana as a

trademark.

In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time,

consumers could enjoy the fresh taste of not-from-concentrate 100% Florida orange juice in

a ready0to serve package the juice, Tropicana Pure Premium, became the companys

flagship product.

In 1957 the name of the company was changed to Tropicana Products, headquartered in

Bradenton, Florida. The company went public in 1957, was purchases by Beatrice Foods Co.

in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to the seagram Company

Ltd. in 1988. Seagram purchased Dole global juice business in 1995. PepsiCo acquired

Tropicana, including the Dole juice business, in August 1998.

Today the Tropicana brand is available in 63 countries. Principal brands in North America

are Tropicana Pure premium, Tropicana Seasons Best, Dole Juices and Tropicana Twister.

Internationally, principal brands include Tropicana Pure Premium and Dole juices along with

FruiVita, Looza and Copella. Tropicana Pure Premium is the third largest brand of all food

products sold in grocery stores in the United States.

Gatorade sports drinks was acquired by the Quaker Oats Company in 1983 and become a

part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. created

in 1965 by researchers at the University of Florida for the schools football team, The

Gators, Gatorade is now the worlds leading sports drink.

QUAKER FOODS

The Quaker Oats company was formed in 1901 when several American pioneers in oat

milling came together to incorporate. in Ravenna; Ohio, Henry D. Seymour and William

Heston had established the Quaker Mill Company and registered the now famous trademark.

Seymour wanted his product to be symbol of honesty, integrity and strength. the figures of

a man in Quaker clothes became the first registered trademark for breakfast cereal and

remains the hallmark for Quaker Oats today.


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in Cedar Rapids, lowa, John Stuart and son, Robert, and their partner, George Douglas,

operated the largest cereal mill of the time. Ferdinand Schumacher, known as The Oatmeal

King, had founded German Mills American Oatmeal Company in 1856.

Combining the Quaker Mill Company with the Stuart and Schumacher businesses brought

together the top oats milling expertise in the country as the Quaker Oats Company.

The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is

today the leading manufacturer of pancake mixes and syrup.

In 1986, the Quaker Oats Company acquired the Golden Grain Company, producers of Rice-

A-Roni.

PepsiCo merged with the Quaker Oats Company in 2001. Its products still have the

eminence of wholesome, good-for-you food, as envisioned by the company over a century

ago.

Slogans and Logos

Click on thumbnail to see larger picture.

1898 Brad's Drink

1903 Exhilarating, Invigorating, Aids Digestion

1906 Original Pure Food Drink

1908 Delicious and Healthful

1915 For All Thirsts - Pepsi:Cola

1919 Pepsi:Cola - It makes you Scintillate

1920 Drink Pepsi:Cola - It Will Satisfy You

1928 Peps You Up!

1929 Here's Health!

1932 Sparkling, Delicious

1933 It's the Best Cola Drink


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1934 Double Size

Refreshing and Healthful

1938 Join the Swing to Pepsi

1939 Twice as Much for a Nickel

1943 Bigger Drink, Better Taste

1947 It's a Great American Custom

1949 Why Take Less When Pepsi's Best?

1950 More Bounce to the Ounce

1954 The Light Refreshment

Refreshing Without Filling

1958 Be Sociable, Have a Pepsi

1961 Now It's Pepsi for Those Who Think Young

1963 Come Alive! You're in the Pepsi Generation

1967 Taste that Beats the Others Cold, Pepsi Pours It On.

1969 You've Got a Lot to Live, Pepsi's Got a Lot to Give

1973 Join the Pepsi People Feelin' Free

1976 Have a Pepsi Day!

1979 Catch That Pepsi Spirit

Take the Pepsi Challenge

1981 Pepsi's Got Your Taste for Life

1983 Pepsi Now!

1984 The Choice of a New Generation

1987 America's Choice

1989 A Generation Ahead

1992 Gotta Have It

1993 Be Young, Have Fun, Drink Pepsi

1995 Nothing Else is a Pepsi


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1997 Generation Next

1998 Same Great Taste

1999 The Joy of Cola

2000 The Joy of Pepsi

COMPETITION OF PEPSI VS COKE

COMPETITON

(Real war between Pepsi & coke)

Every food companies have their competition. Pepsis main competitor is Coca-Cola co. Both

have been selling thirst quenchers for 100 years that are now global brands. Their bottles

move through the worlds most pervasive distribution network.

Coke is mainly a franchise driven operation with a company supplying its soft drink

concentrate to its soft bottles around the world Coke management releases that a soft drink

is a convenience as well as an impulse product. According the companys expertise lies

in consumers marketing. Idea is to reduce the effect span as Also coke will be

experimenting with mobile dispensing units at beaches and stadiums going out towards

consumers the much as possible. Cokes infrastructure plan include setting up new


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subsidiaries. It is also considering a 35 Greenfield venture to set-up a model plant in

westerns corridor most likely in Gujarat. This will have 4 product lines with a capacity of 600

bottles per minutes with a build in flexibility to about top different and flavors and sizes.

Another option for building capacity is to bringing in bottlers from overseas to invent jointly

in fresh capacity. The company wants to go a stem further and set-up COCA-COLA institute

a training facility for bottlers. Coke continues to stay with its multi brand strategy. This

enhances the ability to leverage self-space at the retail outlet. It also gives then flexibility to

offer price on brand others then lead once. Coke has launched MAJA pineapple and MAJA

orange. As far as new product launched is concerned coke plans a dual brand approach by

bringing in FANTA lemon. This comes about because volumes of LIMCA have increased by

20% shares, which have an 80% - share of the cloudy lemon segmentSo this dual brand

approach will extend to that flavors too. Pepsis decision to take in company owned bottling

operation (COBO) alongside franchise has proved to be winning edge over its competitor. By

1994 Pepsis has bought over five bottles in the key markets. This ensuring maximum

control. The franchise now sees the company not just as advisor but also as carrying the

weight of experience. Company system and franchisee system can now be properly aligned

to meet the required objectives.

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 in higher of

countrywide and they offer consumers a whole new way experience soft drinks. Also

expanding teach and availability. Coke tied up with Indian oil to set up dispensing units at

petrol pumps. Pepsi followed suit by striking a deal with Bharat Petroleum.

Pepsi has mainly focused a 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 there

might behind the brand Pepsi as the flagship brand. In 1987, Pepsi ranked 29 in the fortune

list of the 500 largest industrial corporation 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 missive

public out cry, the company had to reintroduce the original coke classic. Pepsi has so far

made in roads in 151countries (150 before India) including the much-publicized ventures in

the soviet Union and China. Patience in Pepsi Co.s long suit. At the base of every beverage

business lies the all important secret formula of success the Concentrate. In India the

concentrate is prepared by Pepsi food limited representatives of Pepsi-Cola international.

They came, spent, and conquered. The size of their combined business adds up to more


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than Rs. 5500 Crore. The equity investment put in it tots up to a humungous $ 1347 million

(Rs. 5700 crore). Yet almost 10 year after Pepsi Coca-cola Company entered India, birth are

yet to turn a profit. Their accumulated losses are estimated to over Rs. 800 Crore. In a bid

to comer a larger market share, invariably, either Pepsi or Coke ends up raising the stakes

to a point where the math simply doesnt add up. Just that the two cola giants have been in

an unseemly hurry to grow the Indian market and, at the same time deny each other any

advantages, irrespective of whether it makes economics sense. In the mid 90s breakeven

was pegged at 40 million cases. Today, both players together do 150 million cases, but

break-even is still elusive. The battle spilled into almost every area of operations in early

1999, that discounts were also unleashed. If the industry norm was around three to four

bottles free with every case, the Cola majors began to offer six to seven bottles. In 2000

particularly in the month coke went berserk, giving 500/0 discounts.

Both cola warriors targeted a clutch of key accounts about 67% of the total retail base,

primarily restaurants, movie halls and hotels. In many cases the owner would play one

against the other and drive a hard bargain. In may cases the cola companies. Paid close to

Rs. 100 per case of expected off take as advance to secure a monopoly over the key

account.

The gross margins o~ a case of returnable glass bottles was just Rs. 40. In India, a single-

serve P & T bottles was simply not cost effective.

Aluminum cans too suffered from the same problem effective. Aluminum cans too suffered

from the same problem. Now every year, both companies had to invest in fresh glass

capacity and crates. Back-of-the envelop calculations suggested that to put an additional

million bottles in the market required close to Rs. 40 crore investment in glass and carats,

and glass bottles had to be replaced every four year after they had done 40 cycles, during

which time depreciation had been charged. Till the cola companies began to concentrate on

the urban centers. As soon as they pushed into the winter land, the first sings of problems

surfaced. In a state like Tamil Nadu the off take per 1000 people was barely 0.9 as a result,

when a Pepsi or a coke truck went into interior markets, the glass simply wouldnt come

black fast, either consumption was low or the volumes were being split between the

volumes were being spilt between the two competitors as a market. But that would have

been completely out or character for the company. it is a bit like asking the Brazilian

Soccer team to adopt German-Style total football. Across global market Pepsi has always

reveled in grabbing share away from coke. But in India it finds itself in a peculiar position. It


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is the Numero Uno brand, outselling both coke and Thums up put together. Thats helped

Pepsis Indian team to build quite a reputation. Pepsi has managed to constantly find ways

to connect with the 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 of15-29.

ENTRY OF PEPSICO IN INDIA

In 1977, a change in the government at the center led to the exit of coca-cola which

preferred to quit rather to dilute its equity to 40% in compliance with the Foreign Exchange

Regulations Act (FERA).

The beginning of 1980s saw the birth of another cola drink Thums Up the Gold Spot

people launched it in 1978-79 as Refreshing Cola; in 1978 Parle led the Indian soft drinks

market (share33%) with its Gold Spot and Limca brands. In 1987 pure drinks share came

down to21% as a result of growing popularity of Limca and Thums 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 was growing at the rate

0/20%. In early 1985, the government rejected a proposal with the R.P Goenka Group. This

involved the export of fruit juice concentrated 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/package was the second bed by

the U.S. headquarters MNC to inter India. Pepsi Co would have an equity holding of 39%,

Punjab Agro Industries Corporation (PAIC) 20% and Voltas 24%. The bad to be financed

privately from loans. A. project approval board was finally set in February 1988.

Pepsis shares which have 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 in

1977. Thus Pepsi not only accepted the conditions but also went much further. Now the

victory for Pepsi who after more than 5 years of acrimonious battle was launched in June

1990 selectively in Rajasthan, Punjab, Uttar Pradesh and South as SAHAR-PEPSI.

In 1991, saw a major launch of 7Up and Mirinda in India, which was warmly received by


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Indian customers & consumers. 1993 was new beginning for fountain Pepsi (PMX). Pepsi

achieved the no.1position in India. In 1996 Mirinda attained no. 1 position in orange

beverages category.

May 1998 saw major launch of Mirinda lemon in India around 70% of the total sales came

from established markets of North America.

Pepsi has major branch namely:

Pepsi: Diet-Pepsi; Mountain Dew

7-UP: Slice and Miranda (orange.& lemon)

Mr. Ramesh Vengal was the first Managing Director who was here till April 1992. Mr. Suman

Sinha the current

President took over from him after a long inning with Hindustan. Lever Ltd. (HLL) During

these years the beverages business has grown rapidly from 3 million cases to 60 million

cases and is paced for annually through 7,50,000 retail outlet across the country. It

generates annual sales of approximately Rs.2, 500 Crores (which includes exports of Rs.

300crore) and a presence in the nascent juice market with Tropicana (sales, Rs. 50 crore).

PEPSICO INDIA

Pepsi is one of the most well known brands inthe world today available in over 160

countries. The company has an extremely positive outlook for India. Outside North America

two of our largest and fastest growing businesses are in India and China, which include

more than of the worlds population. (PepsiCos annual report, 1999)

This reflects thatIndia holds a central position in pepsis corporate strategy. India is a key

market for PepsiCo and at the same time the company has added value to Indian

agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three focus

areas- Soft drink concentrate snack foods and vegetable and food processing.

Faced with the existing policy framework at the time, thecompany entered the India

market through a joint venture with Voltas and Punjab Agro Industries. With the

introduction of the labialisation policies since 1991, Pepsi took complete control f its

operations. The government has approved more than Us$ 400 million worth of investments

of which over US$ 330 million have already flown in.

One of PepsiCos key strategies was to develop acompletely local management team.

Pepsi has 19 company owned factories while their Indian bottling partners own 21. The


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company has set up 8 Greenfield sites in backward regions of different states. PepsiCo

intends to expand its operations and is planning an investment of approximately US$ 150

million in the next two-three years.

Introduction

With a legacy of decades in the industrial arena. The Jaipuria Group of Companies now

stands at the one thousand five hundred Crore mark. The group boasts of its several world-

class business arenas like those of Textiles, Bottling. Education, information technology,

food chain and Retailing, apart from numerous other business segments.

Jaipuria Group is a Rs. 1500 Crore, family controlled, reputed business house with over a

century of operations in diversified fields.

The group as on today can boast of expertise and leadership in the fields of food and

beverages, textiles and real estate development with varied interests in a wide range of

products and services.

The Jaipuria Group under the leadership of the three brothers SK Jaipuria, RK Jaipuria and

CK Jaipuria has today become one of the leading business houses of the country. The

following are the major areas of operations of the Jaipuria Group:

Food and Beverages

Textiles

Information Technology

Real Estate

Education

Presence of Jaipuria Group in India:

Offices & Plants: 1. New Delhi 2. Mumbai 3. Kolkata 4. Chennai 5. Hyderabad 6. Agra 7.

Guwahati 8. Chandigarh 9. Lucknow 10. Varanasi 11. Patna 12. Jaipur 13. Indore 14.

Bhopal 15. Gwalior 16. Vishakhapattanam 17. Udaipur 18. Goa 19. Dharwad 20.

Jamshedpur 21. Noida 22. Cuttack

Jaipuria With Pepsi

The Jaipuria Group, since 1975 has been a renowned and reputed name in the field of soft

drink bottling. Since its foray into this field the Group has bottled almost all the major soft


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drink brands that existed in India like Coca Cola. Thumsup, Limca and Pepsi etc.

Today the Jaipuria Group commands almost 60% of the Pepsi business in India. With an

impressive turnover and plants equipped with the latest technology the Jaipuria Group can

boast of being the biggest name in the country when it comes to soft drink manufacturing.

The Group has major presence in most part of the country, with its 22 fully operational

plants running successfully across the country.

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25

billion and over 142,000 employees. The company consists of the snack businesses of Frito-

Lay North America, Gatorade/Tropicana North America and Frito-Lay international; the

beverage businesses of Pepsi-Cola and PepsiCo Beverages International and Quaker Foods

North America, manufacturer and marketer of ready-to-eat cereals and other food products.

PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCos brand names are Voer 100-years-old, but the corporation is relatively

young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay

Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,

including Gatorade, in 2001.

PepsiCos success is the result of superior products, high standards of performance,

distinctive competitive strategies and the high integrity of our people.

RESEARCH DESIGN

The research process designed was conclusive and statistical in nature. Which would enable


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the company to take rational decision? This is because the sample size taken was large and

the techniques adopted were for mass data. The date obtained from each locality was

tabulated and the results were obtained in from of percentages.

Data collection sources

I Primary sources

Observation non observation and direct

Survey- which include various categories of retailers.

Personal interview

II- Observation

The observation was done by the following meted

Keeping the markets in view

Keeping the customers and consumers in view

Interacting with various group of retailers and consumers

III- Survey

Various retailers and consumer with the help of questionnaire

IV- Personal interviews

This method of date collection involves the interviewers asking question in a face to face

con tact situation there in direct personal investigation and the interview inn properly

structured as it involves the use of set of predetermined questions which are asked in the

form and order pre-decided. This technique is preferred as it is economical; more

informative, non responses are low, spontaneous reaction which are realistic. Lots of

supplementary information comes up.

V- Secondary Data

Secondary data consists of information that already exists some where and may have

collected for a different purpose, it provide a starting point.

To select the localities a map of Aligarh was used. The list of retailers was obtained from

company officials, designed by company.

RESEARCH METHODOLOGY

Under Research Methodology there are three types of methods for marketing research. They

are as follows:

a) The observation method

b) The experimental method

c) The survey method inclusive of panel method.


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In observation method data are collected on the direct observation. No talks take place. By

observing the person the analysis makes the inventory as to product used by him at his

home or kept as retailers stocks. In experimental method it is based on the concept that

small-scale experiment is useful to indicate the expectations of large-scale experiment. The

survey method information is gathered directly from individuals I three ways:

1. Telephone

2. E-Mail

3. Personal Interview

The survey method is also mentioned as the Questionnaire Technique they are also

segregated by:

1) In factual survey

2) Opinion survey

3) Interpretative survey

For my project point of view, the method mainly used are:

1) Survey by route ride

2) Personal interview by questionnaire technique.

1. The survey method by route ride I usually went with Pepsi van also with salesman. I met

the retailers from outlets to outlets. This survey method helps me a lot to understand about

the distribution system and to understand the problem of retailers and other people.

2. In addition to the personal interview by questionnaire technique. In this survey method I

saw that the respondent was shown the exhibit and advertisement to give his personal

opinion and attitude. In this method the direct interaction of occurred with the retailers and

I could collect the reliable information from them it has also cost disadvantage thats why

some were difficult to covered.


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OBJECTIVE

Objective

To measure the satisfaction and dissatisfaction level of Pepsis customers.

SWOT Analysis.

To find the reason behind dissatisfaction if any.

Remedies to clear the dissatisfaction.

Market Evaluation System

It literally means that we evaluate the Market by various means from time to time. Our

evaluation system was based on the four factors:

1. Topography

2. Costumer survey through EDS(Every Dealer Survey)

3. Survey by issuing questionnaire to the customer.

4. Company Issues


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5. Limitations

6. Suggestions

Costumer Survey

Who are the customers?

Here the costumer is categorized on those who finally sells the companies product to the

consumers.

Companies customer are categorized in various sub channels .

The are:

1) Hyper market

2) Super market

3) Convenience and gas

4) Category A self service grocer

5) Cinema single screen

6) Cinema multiplex

7) Food service QSR

8) Food service food court

9) Food service food dine/pubs/bars


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10) Institution education

11) Institution office

12) Institute others

13) Transport railways

14) Transport bus stand

15) Transport airport & airline

16) Leisure amusement park

17) Leisure clubs

18) Eatery

19) Convenience

20) Grocery A category

21) Grocery rest

Literally we can say above are the places where companies distribution channel are putting

there efforts to place their product.

Every Dealer Survey(EDS)

The Every Dealer Survey commonly known as EDS is made every year by the company.

This survey is done every year by the company so that complete awareness about the

retailers and there attachment with he company is observed. The data of EDS helps in

knowing the companys position among the competitors as well as the competitors position.

The assessment is done in following ways:

The format of EDS is given as under:

Outlet Name: - Is the name of the outlet.

Contact person: - To whom the surveyor contacts.

Address: - Address of outlet.

Contact no:- Is the contact number of the outlet.

Channel : - Is the category of the outlet.


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SIGNAGE

One of the important topic covered under the EDS is signage. Here Signage refers to

visibility of brand names and different flavours in the outlet. There are various ways through

which the brand names and different flavours are made visible to the consumers. They are:

Dealer boards

Glow sign boards

Shop painting

Counter rack

Floor rack

One of the important philosophy company follows is: JO DIKHTA WO BIKTA HAI means

the thing which is visible in any outlet, consumer demands for it. And this philosophy of

company is very much true. Through the EDS the signage of the competitor is also

concluded. From the survey it was observed that the routes or outlets where there is good

signage the sale of product is also up to mark. Similarly it was also noticed that company

needs to put some more effort regarding signage in the week routes.

Chilling equipments

Under this category the chilling equipment of PEPSI and its competetor is estimated .There

are series of chilling equipment of Pepsi and its competitor. They are namely

PBI code Chilling machine provided by the company free of cost to the retailers having

goodwill in the soft drink market.

CCI code Provided by the competitor just as PBI Code.

Outlet own Chilling machine owned by the outlet.

PBI OYC & CCI OYC The equipments provided by Pepsi and its competitor respectively on

the payment and the mode of payment is draft.

Other initiative

The other initiative are those initiative which supports the signage and makes a perception

on the mind of a consumer. These initiatives are (display, combo, HAD etc). The common

initiatives are


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1. PHHP

2. FNF.

A Brief Summary Of Direct Interviews

A survey was conducted in which 10 best samples were collected from all the routes which

also include distributors and dealers.

Following are the questions and there evaluation according to the sample answer:

1) Which brand u purchase the most?

When it was asked about the brand preference from the customer the answer varied from

one route to another. In routes like route no-5,route no- 6,route no-7 etc. which are

considered the best route of Aligarh the figures are impressive. About 57% of costumer

prefer Pepsi and the remaining 33% goes in the hand of the competitors.

Where as when it was asked in the routes which company considers it as its week routes

there was marginal difference in the in the figures generated in comparison to strong

routes. The brand preference of customer in the week route is :

PEPSI 39%

COKE 61%

2)Is there Regular Supply of PEPSI:-

A) Yes b) No

When asked about the regular supply of PEPSI the response was very good the sales man

visited almost every day. The distribution system of Pepsi should be given credit for the

above reason. There are different kind vehicle which the company uses depending upon the

route. And sales man as a driver drives to their respective routes.


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3)Does PEPSI salesman behave properly

(stretch on interpersonal relationship)

Since the satisfaction level of customer is measured, so the behavior of sale personnel is

one of the important things to be measured in this context. So talking about interpersonal

relationship with the costumer it is quite satisfactory but some reasons are there which do

not supports the satisfaction of the customer that is the routes for a sales man is never

permanent so the sales man faces difficulty in establishing good relation with the

customers.


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4)Does salesmen provide you with right scheme given by the

Company

When the above question was asked the reply of the costumer was satisfactory.

About 60% said YES

About 15% said NO

And about 25% said CANT SAY

This is one of the important finding surveyed in different routes.

And some serious decision is to be taken for the cause of no and cant say.

One of the suggestions which is to be given for the cause is the scheme should be known to

the customer and the sales man should carry some proof regarding the schemes announced

by the company.

Scheme provided by the sales man:-

5) If in problem, Pepsi personnel rectifies

a. Within day

b. Within a week

c. Within a month

d. Never

When asked about problem rectification

65% says (b)

20% says ( c )


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10% says that there problem is never rectified, and again this is a serious problem which is

to be considered.

5% says within a day.

6) Are u satisfied by the packaging of the Pepsi product

When asked about the packaging of Pepsi majority of answers was positive, 90% said that

they were satisfied by the packaging of Pepsi products. 6% wanted change in the shape and

size of c/s, and 4% were not satisfied by the packaging of tetra and pet pack of slice.

7) Do your salesman aware you of the display and the seasonal schemes by

PEPSI.

About 70% said they get the awareness.

About 20% said NO.

And 10% said cant say. (They exactly dont remember).


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8)Are u satisfied with the display and the seasonal scheame..

This question resulted in one of the important finding.

About 75 % were not satisfied with the display and the seasonal scheme.

The main reason behind this is delay in the gifts given to the customers.

Rest 25% said yes.


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9) Which promotional scheme you do you prefer:

a) related to outlet

About 55% had given stretch on good signage

About 30% preferred daily scheme.

About 7% prefere discount.

8% had other reasons.

b) related to consumer

The answer of promotional scheme of consumer was moving around stress in

advertisement and scratch coupons But some answers were related to the price

of soft drink that is price should be decreased.

10) Rank PEPSI and COKE with respect to your satisfaction level

This was one of the toughest question for the customers .They faced hesitation on ranking

the two soft drink rivals but ultimately since the answer was to be given by the customers

so they answered:

they ranked :

RANK 1 to PEPSI

RANK 2 to COKE


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Survey by issuing questionnaire

Through questionnaire survey was conducted in which samples were collected form all the

routes which also include distributors and dealers.

Outlet name:- this is the name of the shop.

Owner name:- is the name of the owner of the shop.

Address:- is the address of the shop.

Contact no:-is the contact no of the shop.

Status:- This is to know the status of the shop that whether it only sales Pepsi or it only sale

Coke or mix. In our survey we find that mostly shops comes under the mix status

And there are only few shops who sales only Pepsi or Coke.

Channel:-it is the category of the shops for example- grocery shop, convenience shop, etery

shops etc.

Equipment:- Under this category the chilling equipment of PEPSI and its competetor is

estimated .There are series of chilling equipment of Pepsi and its competitor. They are

namely

PBI code Chilling machine provided by the company free of cost to the retailers having

goodwill in the soft drink market.

CCI code Provided by the competitor just as PBI Code.


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Outlet own Chilling machine owned by the outlet.

PBI OYC & CCI OYC The equipments provided by Pepsi and its competitor respectively on

the payment and the mode of payment is draft.

Signage:- One of the important topic covered under the EDS is signage. Here Signage refers

to visibility of brand names and different flavours in the outlet. There are various ways

through which the brand names and different flavours are made visible to the consumers.

They are: Dealer boards

Glow sign boards

Shop painting

Counter rack

Floor rack

One of the important philosophy company follows is: JO DIKHTA WO BIKTA HAI means

the thing which is visible in any outlet, consumer demands for it. And this philosophy of

company is very much true. Through the EDS the signage of the competitor is also

concluded. From the survey it was observed that the routes or outlets where there is good

signage the sale of product is also up to mark. Similarly it was also noticed that company

needs to put some more effort regarding signage in the week routes.

Program enrollment of Pepsi?

At present Pepsi has two sales promotion schemes first one is Food And Fizz and second one

is PHHP.

How much stock do you have in hand?

. This is done for both Pepsi and its competitor so that the current fulls availability can be

estimated.

Which are the top three products according to the shopkeeper?

. This is done for both Pepsi and Coke so that the top three brands of both the competitors

can be estimated according to our survey the top three products of Pepsi are i) Pepsi ii)Slice

and iii)Mirinda orange and in Coke i)Thumps UP ii)Limca and iii)Maaza

How do you rate both the companys on a scale of 0-10 for the parameters:-

a)Stock delivery

b)On emergency order

c)On equipment maintenance:-


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d)On availability of all packs and flavours:-

this question helps us to know the service quality of both the companies.

Age wise liking of the flavours, according to the shopkeeper?

It is to know age wise flavour liking of the peoples of different areas.

Which is the preferred pack on spot consumption at your shop?

Where there is a small market the consumption of the 200ml is more and in big markets or

big outlets the consumption of 300ml is more.

Which is the most preferred brand/pack/flavours in home delivery at your shop?

This is to know the most preferred brand/pack/flavour in home delivery.

Any suggestions:-

Some common suggestions are:

1) Scheme should be clear to costumers.

2) There should be uniformity in the schemes.

3) The outlet should be provided with proper signage index.

4) There should be regular visit of company officials for the problem hearings and the

remedies to the problem.


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Summary and conclusion: -

Observation :-

1) Route vehicles are regular in almost all routes but they reaches to their destination late.

It is observed that the competitor vehicle reaches quite early and fills the empty glasses ,

this may be one of the reason of decrease in the sale.

2) Even key outlets are very unsatisfied with the signage efforts put on by company even all

Pepsi exclusives are not having signage.

3) Complains handling was not proper, there were some old cases or complaints.

4) Big retailer / fat agent are involved in undercutting which should be stopped

immediately.

5) Most of the cooling equipment are not working properly.

6) Due to the shortage of Pepsi product in the market in this season Pepsi could not reach

to that mark where it can reach.

SWOT ANALYSIS

STRENGTH:

1) Good market penetration.

2) Motivated channel partner.

3) Well defined routes.

WEAKNESS:

1) All brands were not available in at least 80% shops.


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2) Complaint handling was not up to mark.

3) Supply in certain area is very irregular and also route agents are not covering full routes.

4) Poor signage and display is making the routes week for the sale of Pepsi.

5) Interpersonal relationship with the company officials and the route agent is not

satisfactory.

OPPORTUNITY:

1) It is observed that in some newly establishing areas many new outlets are opening ,

Pepsi needs to concentrate on these new outlets and can gradually increase its sale in these

area.

2) Large number of mix outlets can be changed to Pepsi exclusive and coke exclusive to mix

only by luring them good and efficient supply, glow sign and cooling equipments.

THREATS:

1) Coke is the only nearest competitor and it is catching up in the market penetration

through price skimming and other promotional scheme.

2) Some local brands commonly known as kancha , Tip Top , Shine and the launch of Catch

soft drink a product of DS group are causing decrease in sale in some areas.


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RECOMMENDATION:

1) Signage :- Majority of outlets are not satisfied with signage and they are also very

unsatisfied with the shortage problem. This problem results in the multiple problems leading

to the marginal level of dissatisfaction. There for it is very necessary to provide with

effective signage to the outlets.

2) Uniformity in the routes of sales agent :- It was observed that none of the salesmen is

permanent to any route but to build up a good interpersonal relation proper interaction with

the outlets should be there so that company can position its product to the respective

routes and outlets.

3) Communication and motivational class :- There is need of proper communication and

motivational class for the sales agent and the employs so that the can give their best effort

and contribute to the target announced by the company.

4) Display and Seasonal scheme :- If display or seasonal scheme is allotted to any outlet it

is necessary to provide the outlets with the gifts items to encourage them , so that they can

follow the display or seasonal scheme in next season.

5)Complaint handling and its rectification:- To enhance the effectiveness in complain

handling about cooling equipment it is advised to authorized at least one shop per two route

, this will help in complain handling, which is biggest dissatisfaction in this season .

6) Awareness policies The outlets needs awareness about the routes and daily scheme

announced by the company . It is recommended that the sales agent should carry some

proof , document concerned with the daily scheme so as the outlets can be satisfied.


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Annexure

BIBLIOGROPHY

1. Research Methodology.. C.R.Kothary

2. Marketing Management. Philip Kotler

3. Statistical methods. S.P.Gupta

4. WWW.PEPSICO.COM

5. www.wikkipidia.com.


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Questionnaire

Outlet name:- Owner name:- ..

Address:- Contact no:-

...

Status:- i)Pepsi ii)Coke iii)Mix

Channel:- .

Pepsi Coke

Equipment:-

Signage:-

Q 1- Program enrollment of Pepsi:-

i) PHHP ii)FNF

Q 2- How much stock do you have in hand?

Pepsi Coke

a) Glass 200ml 300ml 200ml 300ml


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b)Pet 500ml 2ltr 500ml 2ltr

c)Diet

d)Tetra :- i)Slice .. ii)Maaza.. iii)Frooti.. iv)Others

e)Mineral water:- i)Aquafina.. ii)Kinley.. iii)Bislery...

iv)Others

Q 3- Which are the top three products according to the shopkeeper?

Pepsi:- i) ii) iii)..

Coke:- i)... ii) iii).

Q 4- How do you rate both the companies on a scale of 0-10 for the following parameters:-

a)Stock delivery:-

b)On emergency orders:-

c)On equipment maintenance:-

d)On availability of all packs and flavours:-

Q 5- Age wise liking of the flavours, according to the shopkeeper?

AGE

Flavours 5-15 16-25 26-40 40 and above

a) Cola:-


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b) Lemon:-

c) Orange:-

d) Mango:-

e) Diet:-

Q 6- Which is the preferred pack on spot consumption at your shop?

a) 200ml b) 300ml c) 500ml

Q 7- Which is the most preferred brand/pack/flavours in home delivery at your shop?

Any suggestions:-...............................................................................

Posted by muqeem khan at9:19 PM

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