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A
PROJECT REPORT +++++++++++++++
AS A PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
SESSION : 2005- 2007
SUBMITTED BY SUBMITTED TO:Agam Shanti Dubey Mr. Rakesh SinghMBA-III Semester Faculty of MBARoll No: 0517270004
Lloyd Institute of Management & Technology, Knowledge Park-2,
Greater Noida
TABLE OF CONTENTS
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
1. COMPANY PROFILE
SWOT ANALYSIS OF COMPANY
MARKETING STRATEGY OF THE COMPANY
2. INTRODUCTION OF PROJECT
RESEARCH OBJECTIVE
3. RESEARCH METHODOLOGY
4. DATA ANALYSIS & FINDINGS
5. LIMITATIONS
6. RECOMMENDATIONS
7. CONCLUSIONS
8. ANNEXURE
QUESTIONNAIRE
9. BIBLIOGRAPHY
ACKNOWLEDGEMENTACKNOWLEDGEMENT
First of all. I thank almighty God for his goodness and
lovingness. I thank him because he has given me a beautiful and
wonderful chance and time, to express my sincere gratitude to all
faculty members of Lloyd Institute of Management & Technology,
thank to God because he has been helping me by giving good
teachers and friends.
Now I would like to thanks sincerely and grateful to my
revered guide Mr. Rakesh Singh (Faculty-MBA) who is gem of
my college and helped me in many ways in completion of this
project.
This project is the outcome of the great deal of co-This project is the outcome of the great deal of co-
operation of the retailers and consumers. I am very grateful tooperation of the retailers and consumers. I am very grateful to
Mr. Manmohan Mr. Manmohan (TDM Ghaziabad Region) (TDM Ghaziabad Region) under whom I startedunder whom I started
my summer training when he was ADC (Area Development Co-my summer training when he was ADC (Area Development Co-
ordinator) of the Ghaziabad Depot (Varun Beverages Ltd.,ordinator) of the Ghaziabad Depot (Varun Beverages Ltd.,
Ghaziabad) and Ghaziabad) and Mr. Vikas Gautam (Sr. Customer Executive)Mr. Vikas Gautam (Sr. Customer Executive)
and Mr. Pankaj Sharma (Customer Executive) and Mr. Pankaj Sharma (Customer Executive) for their friendlyfor their friendly
support as well as guidance. support as well as guidance.
AGAM SHANTI DUBEY MBA-III MBA-III SemesterSemester
EXECUTIVE - SUMMARY
This project was undertaken during the summer Training. A great deal of
effort has been put in preparing the questionnaire, in order to understand the
market better {Ghaziabad}.
Objectives: -
1. Extent to which merchandising assets are being used by the retailers
in promoting the brands.
2. Market demand of Pepsi vis-à-vis Coca Cola and Thums up.
3. Market demand of Mirinda-O vis-à-vis Fanta
4. Market demand of Mirinda-L vis-à-vis Limca, Mountain dew, Sprite
and 7up
5. Market demand of Slice vis-à-vis Maaza.
6. Market comparison of all the available brands of the soft drinks in the
market.
7. Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its
brands.
A BRIEF DESCRIPTION OF THE FINDINGS:
1. Extent to which merchandising assets are being used by the
retailers in promoting the brands: -
Retailer who are having DPS Boards / GSB and other display material like
stands, posters etc. were selected. Display material on the retailers shop was
given rank between 1, 2 and 3 according to their visibility. If the DPS
Boards / GSB and other display material were found visible at first sight
then they have been ranked '1st', if they were found visible at second sight
then they have been ranked '2nd' otherwise '3rd'.In the similar fashion ranks
were allotted to the refrigerators in the retailers shop.
While entering each shop it was taken care that the display materials are
properly ranked according to there visibility and incase of confusion,
opinion of the consumers were taken. Those shops with GSB’s were visited
during the evening in order to see there visibility. In these cases some
glaring facts were found. (Areas which were looking like monopoly markets
of Coca-Cola because of its Red-color during the day had altogether a
different look in the evening. They turned into Pepsi monopoly during the
evening because of the GSB's. Researcher have also tried to find out what
are the difficulties retailers are facing on using these brands up to 100% of
their strength.
2. Market demand of each of Pepsi’s product vis-à-vis to their
competitor flavours in Coca-Cola's artillery: -
For this, retailers were asked about the market demand of the different
brands and they have been asked to rank the brands with respect to their
competitive flavors. In this also some interesting facts came out like no
lemon brand exists in front of Pepsi. Our Mountain dew, which we were
thinking that it will be competing with Limca, actually it is grabbing the
Coca-Cola's Sprite’s market and Pepsi’s, 7up's market. In case of
Mirinda (O) and Coca-Cola's Fanta, Mirinda’s market is going up day by
day.
In case of mango drinks Slice even after entering the market so late has been
able to quickly pick up with Maaza. From the day Tetra Slice has entered
the market it has captured the market of Frooti.
In case of Aquafina, Coca-Cola's Kinley stands nowhere but brands which
are competing with kit are Paras, Bisleri, and Kingfisher.
3. Market comparison of all the available pickings of the soft drinks in
the market: -
In the market this study is done to find out that on which packing,
company should concentrate more. From the day company has introduced its
200ml packs, Pepsi is more economical for the lower income grade
consumers like Riksha-pullars and others.
4. Brands/ Pack availability of Coca-cola and its brands vis-à-vis Pepsi
and its brands: -
For this study, retailers were asked that how many bottles they are having in
their fridge and how many of them are of the brand whose fridge they are
having and about the capacity of their fridge. In spite of these findings
Researcher have worked on some other things like retailers expectations
from the company. He tried to find out how the company can increase the
sales. In the answer to this some funny recommendations came up (some
consumers recommended that Pepsi should change the percentage of the
sweetening content of its cola drinks).
About RKJ Group
Welcome to our Group website, designed to open up our
business and inform you about RKJ Group. With the rapid
advancement of technology, the Internet is the most
efficient way to give you up to date and easily accessible information. We
hope you find this website a useful and effective way of learning more about
RKJ Group.
About us:
It can be said with absolute certainty that the RKJ Group has carved out a
special niche for itself. Our 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 46 Pizza Hut Restaurants &
1 KFC Restaurant under its company.
We diversified into education by opening our 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
Our Success
Weatherup, President of Pepsi Cola Company.
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.
Our People
At RKJ we are creating an environment where our employees enjoy a
greater degree of empowerment - both individually and in their work teams.
Our 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.
Business Segments
The RKJ Group is divided into three business segments- Beverage,
Food and Education. It has a leading market position in each of its
three business segments. Our balanced portfolio produced a solid
business performance. Products and services which look to the
future ensure that we will be well-placed in growth markets.
FOOD
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 varun
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
as their Ice Cream sourcing plant. After working for 10 years
in this field, during launched its own brand in technical and
marketing collaboration with Candia of France
EDUCATION
The R K J Group has been associated with
excellence in education. It strongly believes that
investment in quality care and education for
young minds is essential for the future growth and
development of our country. The group’s foray into the
school education is intended to provide exceptional
opportunities for the development of the academic abilities
of the students. The schools run by the group encourage
students to become creative, innovative and imaginative.
They have a wide range of co-curricular activities, which are
as important as the academic disciplines.
School life merges with a plethora of activities to suit every
schedule, talent and interest in the areas like indoor and
outdoor games, swimming, art and culture, music and
drama, Yoga and martial arts, community service, etc. The
school's approach to education has been designed to ensure
that the students realise their true potential and grow up to
become complete individuals and responsible citizens.
The group’s foray into pre-school education is in line with
educational projects of the group. “We see no competition
because pre-school education is a niche market. There is no
specialized way of teaching pre-schoolers here”, says
Jaipuria. The year 2001 witnessed the further spread of the
group’s portfolio with the opening of its first school at
Gurgaon under the management agreement with Delhi
Public School Society. To expand in the field of education it
opened its second school at Jaipur under the management of
same society.
The Group has entered into a join venture
partnership with Modern Montessori
International (MMI) Singapore, to open pre-school
educational institutions across the country. Forming a new
entity, Modern Montessori International (MMI) India in which
the Group will have 51 per cent equity stake, the company
invests Rs 200-crore investment in the Indian operations in
the next five years.
MMI India plans to open four schools by April 2004 and as
many as 14 schools by 2005. The company will be opening
its first school in Gurgaon. The long-term agenda includes
The R K J Group has been associated with excellence in
education. It strongly believes that investment in quality
care and education for young minds is essential for the
future growth and development of our country. The group’s
foray into the school education is intended to provide
exceptional opportunities for the development of the
academic abilities of the students. The schools run by the
group encourage students to become creative, innovative
and imaginative. They have a wide range of co-curricular
activities,
VARUN BEVERAGES LTD.
COMPANY PROFILE
Varun Beverages Ltd. is a FOBO – Franchisee Oriented Bottling
Operation of Pepsi, headed by Mr. Ravi jaipuria.
Year of establishment 1993
Corporate Office F-34, Sec-6 Noida (U.P.)
Manufacturing Facilities (a) Varun Beverages Ltd.
Surajpur plant, Greater Noida (U.P.)
(b) Agra Beverages Agra (U.P.)
(C) Varun beverages, Jaipur (Raj.)
Operating Are areas : Whole of east Delhi
Noida, Ghaziabad, Haridwar,
Agra, Aligarh, Mathura,
Faridabad, Gurgaon,
Ballabhgarh, Jaipur etc.
Production Capacity 1400 Bottles Per Minute.
(Surajpur Plant Greater Noida)
VARUN BEVERAGES LTD.
COMPANY PROFILE
Mr.. R.K. Jaipuria who heads Varun Beverages Ltd. and has been
adjudged Best Pepsi Bottler of the world for the current year. He was
presented with the Donaid M. Kondell Bottler of the year award, the
highest honour to any franchisee.
He is thoroughly experienced in setting-up and running Pepsi Cola
Bottling Plant in India. The past experience of the family in beverage
industry is since the sixties when it had the first franchise at Agra.
Family has in total 12 bottling plants in Indian and produces and
markets 40% of the Pepsi requirement in India. The plants are
located at Greater Noida, Jaipur, Delhi, Agra, Nagpur, Hyderabad,
Raipur, Vishakapatnam, Guntur, Bhopal and Cuttack. Group also has
got franchise for Kwality Walls Ice Cream from Brooke Bond Lipton
India Limited. As Franchisee for Kwality Walls Ice Cream from M/s
Brooke Bond Ltd
1.The group caters to the ice creams demand for the state of U.P…
The group owns state-of- art facilities to manufacture Ice Cream at
Agra. Recently Group has also signed a franchise agreement with
Tricon Rstaurants (India) Pvt. Ltd., to start a chain of restaurants in
northern India under the name of PIZZA HUT by opening 15
restaurants. The first four of its Restaurants are already operational at
(i) Ganpati Plaza, M.I. Road Jaipur, Rajasthan (ii) Defence Colony,
New Delhi (iii) Handicraft, Nagar Faterhabad Road, Agra and (iv)
Connaught Place, New Delhi and are making profits. One other
Restaurant at Sector-18 Noida (U.P.) will also be shortly opened for
public.
The Group companies are doing very well in terms of Profitability,
Growth, Market leadership and enjoy good credibility with its business
associated including Pepsi Foods Ltd., the companies enjoy
substantial sales-tax exemptions under the local laws leading to
additional profit margins.
The beverage industry has withessed a phenomenal growth over the
last four years necessitating capacity increase and building up to
commensurate infrastructure to meet the business growth, which is
accordingly matched.
COMPANY PROFILE
VISION OF THE COMPANY:
Satisfying the end consumer, and provide value to each penny he is
spending in buying cold drink.
MISSION OF THE COMPANY:
To provide quality soft drink to the consumer or market.
PEPSI-COLA COMPANY, HEADQUARTERED IN
NEW YORK IS THE GLOBAL BEVERAGE DIVISION OF
PEPSICO. INC.
Pepsi-Cola was founded at the turn of the century by Caleb Bradham, a
New Bern, N.C. druggist who first formulated the beverage. Today,
Brand Pepsi and other Pepsi-Cola North America products – including
Diet Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands – account
for nearly one-third of total soft drink sales in the United States, a
consumer market totaling about $56 billion. Pepsi-Cola beverages are
available in about 170 countries.
Pepsi-Cola North America also makes and markets ready-to-drink iced
teas and coffees, respectively, via joint ventures with Lipton and
Starbucks.
PepsiCo. Inc. is among the most successful consumer products
company in the world, with 1998 revenues of over $22 billion and
151,000 employees. The company consists of:
Pepsi-Cola Company, the world's second-largest beverage company
Frito-Lay Company, the world's largest manufacturer and distributor of snack
chips
Tropicana Products, Inc., the world's largest marketer and producer of branded
juices
PepsiCo. Mission Statement:
PepsiCo's overall mission is to increase the value of our shareholder's
investment. We do this through sales growth, cost controls and wise
investment of resources. We believe our commercial success depends
upon offering quality and value to our consumers and customers;
providing products that are safe, wholesome, economically efficient
and environmentally sound; and providing a fair return to our investors
while adhering to the highest standards of integrity.
Environmental Commitment
Pepsico. Inc. serves consumers in two major businesses: beverages and
snack foods. The company consists of Pepsi-Cola Company, the
world’s second largest beverage company, Tropicana Products, Inc. the
world’s largest marketer and producer of branded juices and Frito-Lay
Company, the world’s largest manufacturer and distributor of snack
chips. Pepsico. brand names are among the best known and our
operations reach every corner of the world.
As a consumer products company, Pepsico. does not have the major
environmental problems of heavy industry. Our biggest environ-mental
challenge is packaging generated by our products. Packaging is
important to public health and a critical component of the distribu-tion
system that delivers products to consumers and commercial
establishments. To meet both consumer demand and safeguard the
environment, we recycle, reuse and reduce packaging wherever
possible. Each business is also committed to responsible use of
resources required in manufacturing our products.
Pepsico. is proud of our environmental record. Each of our divisions
and facilities is empowered to find solutions to its unique environ-
mental challenges. This report addresses the environmental prin-ciples
presented in our Code of Conduct and examines our progress.
CORPORATE OVERVIEW:
Pepsico. Inc. is among the most successful consumer products
company in the world, with 1999 revenues of over $20 billion and
116,000 employees. The company consists of: Frito-Lay Company, the
largest manufacturer and distributor of snack chips; Pepsi-Cola
Company, the second largest soft drink business and Tropicana
Products, the largest marketer and producer of branded juice. Pepsico.
brands are among the best known and most respected in the world and
are available in about 190 countries and territories.
Some of Pepsico.'s brand names are 100 years old, but the corporation
is relatively young. Pepsico. Inc. was founded in 1965 through the
merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998.
Pepsico.'s success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of
our people.
Our overriding objective is to increase the value of our shareholders'
investment through integrated operating, investing and financing
activities. Our strategy is to concentrate our resources on growing our
businesses, both through internal growth and carefully selected
acquisitions. Our strategy is continually fine-tuned to address the
opportunities and risks of the global marketplace. The corporation's
success reflects our continuing commitment to growth and a focus on
those businesses where we can drive our own growth and create
opportunities.
PEPSICO. HEADQUARTERS:
Pepsico. Inc. World Headquarters is located in 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 a 144-acre complex that includes the Donald M. Kendall
Sculpture Gardens, a world acclaimed 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 Claes Oldenberg. The gardens were originally designed
by the world famous garden planner, Russell Page. The grounds are
open to the public, and a visitor's booth is in operation during the spring
and summer.
BEVERAGES
Pepsi-Cola Company:
Pepsico.'s beverage business was founded at the turn of the century by
Caleb Bradham, a New Bern, NC druggist who first formulated Pepsi-
Cola. Today consumers spend about $32 billion on Pepsi-Cola
beverages. Brand Pepsi and other Pepsi-Cola products - including Diet
Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands - account for
nearly one-third of total soft drink sales in the United States, a
consumer market totaling about $58 billion.
In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co.
Today Lipton is the biggest selling ready-to-drink tea brand in the
United States.
Outside the United States, Pepsi-Cola Company's soft drink operations
include the business of Seven-Up International. Pepsi-Cola beverages
are available in about 160 countries.
Pepsi-Cola provides advertising, marketing, sales and promotional
support to Pepsi-Cola bottlers and food service customers. This
includes some of the world's best-loved and most recognized
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.
Pepsico. Products:
Pepsico. has hundreds of brands. These are some of the best known.
Pepsi-Cola Brands
Pepsi-Cola
Diet Pepsi
Mirinda
Mountain Dew
Lipton Teas (Partnership)
Aquafina Water
7 Up (utside USA)
Slice
Tropicana
INDUSTRY PROFILE (INDIA)
Pepsi, for once on the defensive, is getting lucky – the men in blue aren’t
just looking cute, they’re rocking.”
The glass will not crack this summer. Crates will not melt either, as coke and
Pepsi vow to keep them chilled and moving all the time. There’s frenzied
excitement at Pepsi. This year, believe analyst, will be different. After all,
soft drinks have hit the magical price point of Rs 5. And the two cola majors
see hords of sticky consumer looming large. The agenda before the two cola
giants is to expand the market, rather than indulge in a muddy street fight.
For years, soft drink rivals have been gnawing at each other, sneering at each
other’s claim and counter claim, comparing market shares, finding flaws in
the methodologies of retail audits – and making a noise about them,
whenever they are favorable. In this age old rivalry there was little for
consumers to cheer about.
They found it about as interesting as you’d find a neighborhood brawl.
But something changed a few months ago. In October last year coke slashed
price by an aggressive 15 to 25 %, forcing Pepsi to follow Suit. It becomes a
price war that gave consumers a reason to smile. It was not easy for either
player. They could do it only by packing efficiency into their operations:
cost cutting and restructuring to withstand price cuts.
Coke and Pepsi want to use their new pricing to drive growth, slurping up
new consumers and penetrating deeper into the existing market. The winner
will clearly be the one that gain initial advantage in the race and make no
mistake, the gain could well decide the fate of the brand over the long term,
but the two rivals believe that the fight over the new consumer base may
turn out fiercer.
Current situation is that the soft drinks have hit the magical price of Rs. 5;
agenda is to expand the market penetration deeper into the existing one.
KEY POINTSKEY POINTS
BASIS COKE PEPSI
1) Strategies used
2) Investment
3) Advertising
4) Brand Range
5) New Launch
Firstly, it reduced the price to Rs.5 for 200ml to attract new customer with rural market support by making it available at the price of Tea, Coffee etc.
Rs 1000 crore for capacity expansion and infrastructure.
Thanda Matlab Coca Cola
Paach matlab Chota Coke
Jo chaho ho jaaye coca cola enjoy- By Amir Khan as a Brand AMBAssador
Coca-Cola Thums-up Limca Fanta
Chota Coke at Rs 5
It followed that to catch new consumer and to increase availability of product to satisfy demand which finally will lead to have in-depth penetration in homes.
Rs 400 crore for capacity expansion and infrastructure.
Yeh Dil Maange More -By Sachin Teldulkar as a Brand AMBAssador
Pepsi Mirinda 7-up Mountain Dew
500 ml Pepsi ( Diet Pepsi)
Mountain Dew 2 liter PET Bottle
COMPANY PROFILE: -
VISION OF THE COMPANY
Satisfying the end consumer, and provide value to each penny he is spending
in buying cold drink.
MISSION OF THE COMPANY
To provide quality soft drink to the consumer or market.
PEPSICO AT A GLANCE
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 and Frito-Lay
International; the beverage businesses of Pepsi-Cola North America,
Gatorade/Tropicana North America 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 PepsiCo's brand names are over 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.
PepsiCo’s success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of our
people.
Our mission is to be the world's premier consumer products company
focused on convenience 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
PepsiCo believes that as a corporate citizen, it has a responsibility to
contribute to the quality of life in our communities. This philosophy is put
into action through support of social agencies, projects and programs. The
scope of this support is extensive – ranging from sponsorship of local
programs and support of employee volunteer activities, to contributions of
time, talent and funds to programs of national impact. Each division is
responsible for its own giving program. Corporate giving is focused on
giving where PepsiCo employees volunteer.
PEPSICO HEADQUARTERS
PepsiCo World Headquarters is located in Purchase, New York,
approximately 45 minutes from New York City. Edward Durrell Stone, one
of America’s foremost architects, designed the seven building headquarters
complex. The building occupies 10 acres of a 144-acre complex that
includes the Donald M. Kendall Sculpture Gardens, a world acclaimed
sculpture collection in a garden setting.
Masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander
Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg focus
the collection of works on major twentieth century art, and features works.
The gardens were originally designed by the world famous garden planner,
Russell Page, and have been extended by François Goffinet. The grounds are
open to the public, and a visitor's booth is in operation during the spring and
summer.
GLOBAL PARTNERS
Frito-Lay North America and Frito-Lay International
PepsiCo's 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 product 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 retail
snack chip sales. Products are available in some 120 countries. Frito-Lay
North America includes Canada and the United States. Major 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
Matutano in Spain, Sabritas and Gamesa in Mexico, Elma 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, Lay's and Doritos brands snack
chips. Other major brands include Cheetos cheese flavored snacks, Tostitos
tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips
multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies,
nuts and crackers.
Pepsi-Cola North America and PepsiCo Beverages International
Caleb Bradham, a New Bern, North Carolina druggist, who first formulated
Pepsi-Cola, founded PepsiCo’s beverage business at the turn of the century.
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.
Pepsi-Cola also offers a variety of non-carbonated beverages, including
Aquafina bottled water, Fruitworks and All Sport.
In 1992 Pepsi-Cola formed a partnership with Thomas 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 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets
an innovative line of 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 Max. 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. PepsiCo Beverages International also produces, sells and
distributes Gatorade sports drinks as well as Tropicana and other juices
internationally.
Pepsi-Cola provides advertising, marketing, sales and promotional support
to Pepsi-Cola bottlers and food service customers. This includes some of the
world's best-loved and most-recognized 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.
Gatorade/Tropicana North America
Anthony Rossi as a Florida fruit packaging business founded Tropicana in
1947. 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 pure not-from-concentrate 100% Florida orange juice
in a ready-to-serve package. The juice, Tropicana Pure Premium, became the
company’s 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 purchased by Beatrice Foods Co. in 1978, acquired
by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company
Ltd. in 1988. Seagram purchased the 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 Season’s Best, Dole
Juices and Tropicana Twister. Internationally, principal brands include
Tropicana Pure Premium and Dole juices along with Frui'Vita, Loóza 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
were acquired by the Quaker Oats Company in 1983 and became a part of
PepsiCo with the merger in 2001.
QUAKER FOODS NORTH AMERICA
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 a symbol of honesty, integrity and strength. The figures of a
man in Quaker clothes became the first registered trademark for breakfast
cereal and remain the hallmark for Quaker Oats today. In Cedar Rapids,
Iowa, John Stuart and his 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.
CAREER OPPORTUNITIES AT
PEPSICO. WORLDWIDE HEADQUARTERS:
Pepsico., Inc. is a worldwide leader in vast and growing markets: beverages,
snack foods and juices. Our company's brands, which include Pepsi-Cola,
Frito-Lay and Tropicana, are among the best known and most successful in
the world.
Our continued growth has created outstanding career opportunities for
talented professionals in a variety of specialized fields at our corporate world
headquarters, located in NEW YORK. We are always looking for good
people in the areas of:
Information Technology
Treasury
Tax
Human Resources
Law
Accounting
Public Affairs
Audit all successful applicants share a commitment to Pepsico.'s goals
and an ability to thrive in a fast-paced, results-oriented environment.
In exchange, we offer a highly competitive compensation and benefits
package.
SWOT ANALYSIS
STRENGTHS: Company belongs to the FMCG sector so the demand will never die.
A large and strong distribution network. (In comparison to the other
competitive brand Pepsi is having better reach to the market.)
Professional and dedicated manpower. (Starting from the higher-level
management to the sales-man Pepsi’s employees is having great
degree of dedication and professional attitude towards selling the
products. On the other hand companies’ operational staff always try
their maximum strength to meet the demand and utilize the recourses
to maximum.)
More emphasis on market penetration (Companies efforts of
providing the Pepsi and other products to the customer’s doorstep are
working vis-à-vis wherever the transportation is not possible dealers
are appointed).
In comparison to Coca-Cola’s red color, which is brighter and have
more visibility Pepsi’s blue color provide sense of relax ness in the
bright sunny day.
In the rural areas and outskirts of the city where there is maximum
population is illiterate, Pepsi is having an edge. (As compared to
Coca-Cola, pronouncing Pepsi is lot more easy reason for more
demand of the Pepsi and its brands.)
More popularity among the kids and female youth. (Because of the
sweetened taste Pepsi and its other brands attracts the kids and female
more. Mirinda is found more popular among kids.).
Retain ability of the T.V. advertisements of Pepsi is far more in
comparison to Coca-Cola. (Pepsi’s T.V. advertisement in which
Sachin Tendulkar whistles at the end has maximum retain ability.
Other than this world cup 2003 advertisement campaign that
comprises of Sachin Tendulkar, Shane Warne and Carl Hooper,
advertisement campaign which compraises of Amitabh Bachhan,
Karina Kapoor and Adnan Sami and latest advertisements of Pepsi
and Mountain Dew (Do the Dew) are very famous. On the other hand
Coca-Cola’s advertisement campaign of “thanda matlab Coca-Cola”
and Amir Khan’s five rupees ad have the maximum retainability.
WEAKNESS:
Coca-Cola’s red color has more visibility than Pepsi’s blue color.
(Because of the bright color of Coca-Cola it is more visible even from
the distance as compared to Pepsi)
Pepsi’s sinages are far more scattered as compared to Coca-Cola.
(Because of this at some places it looks that the market is captured by
Coca-Cola.).
Low plant capacity because of which company is not able to meet its
demand during the peak season (Varun Beverages India Ltd., Pepsi’s
Greater Noida plant has one continuous assembly line for preparing
tetra and four continuous assembly lines’ which are filling around
15,000 bottle/day, which is insufficient to complete the demand
during the peak seasons.).
Lesser plant utilization during the off-peak seasons (During the winter
season as the demand is very low, plant and resource utilization goes
down.)
Lack of automaton in the administrative department in the plant,
which results in wastage of time and sometimes in resources also.
OPPORTUNITIES:
Demand is more than the production. (Because of the heat the
demand of the soft drink raised drastically which is the good
opportunity for the company a the rival brands are also finding it
difficult to complete the demand. Therefore Pepsico.. has to increase
the production.)
In the rural areas Pepsico.’s distribution network is far stronger vis-à-
vis to any of the competitor. Therefore it is viable to make it more
stronger, as this can restrict the entry of the other brands in the rural
market.
Kids demand for the Mirinda more as compared to any other orange
flavor soft drink brand.
With the launch of slice tetra Pepsico. has entered in to one more
segment o soft drink beverages, which was more or less captured by
the “Frooti” till now.
THREATS:
Not able to meet the market demand during the peak season. (As the
plant capacity is very low the company is not able to meet the existing
demand during the peak seasons).
There is lot of complaints are coming up about the impurities or
leakage of gas or leakage of carbonated water. (Within the last 30
days I met around 50 such complaints because of which retailers were
very angry with the company).
There is no proper policy of distributing the merchandising assets of
the company to the retailers. (Many of the retailers have so many
things though their sales are low but few of them don’t have anything
inspite of large sales.).
MARKETING STRATEGIES
1) Pepsi sales club:
This club is for the retailers. In this approach retailers are given some points
once in a month depending upon how they are using the display material
provided by the company to them. This material consists of Fridges, DPS
Boards, Glow Sign Boards, Display Bottles (500ml. 1lt. 2lt, Commodity
Packs, Stands, Posters etc. Depending upon these points retailers are
rewarded by certain gifts from the company.
The retailers are participating in these schemes curiously. But few of the
retailers found furious and angry because they had lost the points because of
miscommunication or lack of guidance. Therefore they need some kind of
guidance from the company. It would be a better idea that our salesman who
are distributing the beverages to the retailers can be equipped by the
appropriate training so that they can guide the retailers about how to use
their display material to 100% of their strength and able to tell about the new
schemes convincingly.
2) Schemes:
Pepsi Beverages India comes out with the schemes on their different
products many times in a year. Most of these schemes are made to benefit
the retailers. Some of the schemes are as follows:
1 bottle of 2lt. free with one 2lt bottle pet.
3 bottles of 500ml free with one 500ml bottle pet
4 tetra packets of tetra slice mango free with one tetra 24 pieces of
slice mango.
1bottles of Aquafina free with one pet of Aquafina.
These schemes keep on changing depending upon the stock. Beverages
companies are giving these schemes despite of acute shortage of soft drink
in every segment to meet the competition, to make sure the availability their
brands and sometimes to satisfy and benefit the retailers and the end
consumers.
3) Advertising:
Through the consumers survey it has been proved that the T.V. commercials
and sinages affect the consumer buying behaviour by approximately 70%.
May be only Pepsico. is investing huge finances in the T.V. commercials
and other sinages, big names of Indian film industries and sports hero’s are
being proposed to become the brand promoters and brand ambassadors.
Sachin Tendulkar, Amitabh Bachhan, Karina Kapoor and more are being
offered huge amount for carrying out the promotions. Pepsi’s T.V.
advertisement in which Sachin Tendulkar whistles at the end has maximum
recall value. Other than this world cup 2003 advertisement campaign that
comprises of Sachin Tendulkar, Shane Warne and Carl Hooper,
advertisement campaign which comprises of Amitabh Bachhan, Karina
Kapoor and Adnan Sami and latest advertisements of Pepsi and Mountain
Dew (Do the Dew) are very famous. Few of the areas through which
advertising is being done are as follows:
Television commercials
Posters
DPS boards
Glow Sign boards
Date calendars
Food and fizz
Space clube
4) Promotion through restaurants and cinema hall
holdings:
Pepsi co. is tying up with different chains of restaurants and fast food
centers like Pizza Hut to promote the Pepsi and its other brands like
Mirinda, Mountain Dew etc. these restaurants are authorized to keep and
use the merchandising assets of Pepsi. Usually these kinds of restaurants
and fast food chains are in contract with the Pepsi Co., so that they
cannot promote any other brand.
5) Merchandising assets:
Pepsi Co. also try to promote their brands by providing their retailers and
dealers some display items. Some of such items are as follows:
1. Fridges
2. Pepsi/mountain due stands
3. Display bottles
4. Posters
Pepsi Co. provide the above things to the retailers to use them in promoting
companies brands and products, and provide refrigerators to the retailers in
the hope that these retailers only use these assets in promoting the Pepsi’s
products and they will chill the Pepsi’s products so that its products will
always be available to the end consumers. But it is not true in most of the
cases. Retailers usually use the merchandising asset of one company
in such a way that it benefits another company. Sometime they do it
unknowingly, sometimes they do it knowingly and sometimes because of the
deficiencies of the company itself. These deficiencies are as follows: -
1. Irregularity of the salesman to the retailers shop.
2. Shortage of the different products and different packages.
3. Sometimes because of the rude behavior of the salesman.
6) Strengthen distribution network and promotions
through word of mouth through sales man:
Unlike the rival brand Coca-Cola, Pepsi Co. Basically depends upon its sales
man for promoting and launching the new as well as old brands because
instead of doing the business through dealer’s network like Coca-Cola,
Pepsico. believes in making and maintaining relations with retailers directly.
Therefore salesman is the very important part of Pepsico. marketing
strategy.
INTRODUCTION
Every year with the start of summers in India the real race to quench the
thirst of the consumers begins in the soft drink beverages industry. Every
year millions participate in it, either in the hot sun or sitting at home
watching their, sipping the soft drink and watching the newly launched
advertisements.
Soft drinks manufacturers in India face a number of major problems, such as
distribution difficulties. Access to the 500,000 villages is limited due to the
poor road network. Inconsistent tax policies, the prevalence of duplicates,
hefty packaging costs and India's seasonal nature are other factors holding
back growth.
During New Year the two of the largest soft drink giants in India Pepsi and
Coca-Cola start experiments with products, packages, flavors and prices in
an effort to boost their market share. For this the biggies make huge
investments in terms of advertising, setting up new and more productive and
modernized plants, improving the distribution network to get better reach to
the end consumer.
One of the areas where these companies are making huge investments is
merchandising. This is the area where companies try to get the maximum
display in the consumer’s eyes at the retailers shop through refrigerators,
glow signboards, DPS boards, stands, posters, display bottles etc. But the
question arises that whether these retailers are making the proper use of
these materials, which the company is providing them. Are they using these
materials to their optimum level in promoting the product of the company
that has provided them the merchandising material? Are the companies
getting the optimum results of the investments they are making in this area?
Researcher have tried to find out answers to the above questions in his
research work, which researcher has conducted during his summer training
during the partial fulfillment of his MBA programme. The objective of
report is as follows: -
RESEARCH OBJECTIVE
To find out to which extent merchandising assets are being used by
the retailers in promoting the products of the Pepsi.
To find out market demand of Pepsi vis-à-vis Coca Cola and Thums
up.
To find out market demand of Mirinda-O vis-à-vis Fanta
To find out market demand of Mirinda-L vis-à-vis Limca, Mountain
dew, Sprite and 7up.
To find out market demand of Slice vis-à-vis Maaza.
To find out market comparison of all the available brands of the soft
drinks in the market.
Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its
brands.
RESEARCH METHODOLOGY
Researcher began his survey with route riding, i.e. travelling along with the
sales persons on his daily trip to service the retailers. Researcher asked the
retailers about their uses of Pepsi merchandises and try to Asses the market
share the Pepsi’s different brands. This is very important point as it gave me
an inside view of the whole setup and further on during the planning of any
of the promotions. Researcher was aware of the limitations and strengths of
the environment he would be working in. The various methods and
principles adopted are listed below:
Research Plan:
Date sources: sources of information are as follows:
(1) Primary sources
Who’s the primary source??
Consumers are the primary source.
(2) Secondary sources – Researcher collected secondary information from
magazines.
Research Approach:
Researcher followed one approach to collect the information
(1) Survey – Researcher contacted the retailers in the market place to gather
the relevant information.
ROOT RIDING
Sector- 23
Wall City
Pratap Vihar
Gandhi Nagar
Sanjay Nagar
Vijay Nagar
Raj Nagar
Maliwara
Kavi Nagar
Railway Station
Highway IIHighway I Bus Stand Patel Nagar Lohiya Nagar
Dealer RouteNandgramTurab Nagar
Shastri Nagar Govindpuram
Dadri RoadG.T Road
Number of Retailers contacted – 400 Retailers.
Research instrument:
Researcher used questionnaire as his instrument for conducting the survey.
Sampling Plan
(1) Sampling unit – Retailers
(2) Sampling procedure- Simple Random Sampling Procedure.
Contact Method
Researcher personally contacted the retailers.
DATA ANALYSIS & FINDINGS
FFIGUREIGURE 1 1
Out of Coca-Cola and Pepsi Beverages India Limited whose GSB do you have ?
PBI11%
Coca-Cola14%
Both 5%
None70%
PBI
Coca-Cola
Both
None
Out of the sample size which has been covered only 11 % of the shops
had Pepsi’s GSB’s vis a vis to 14 % of Coca-Cola’s GSB’s.
14 % of the sample size had the GSB’s of both the major players of
the soft drink industry.
70% of the sample size didn’t have any of the GSB’s displayed.
FFIGUREIGURE 2 2
Ranking according to visibility - Pepsi ?
72%
14%
14%
Rank 1
Rank 2
Rank 3
Ranking according to visibility - Coca Cola ?
49%
38%
13%
Rank 1
Rank 2
Rank 3
72% of the shops having Pepsi GSB’s got the 1st rank according to
their visibility status on the other hand only 14% of the retailers got
the rank 2nd and 3rd each. This shows that retailers who got the GSB
as display material from the company are using them satisfyingly.
49% of the shops having Coca-Cola GSB’s got the rank 1st according
to their visibility status on the other hand 38% of the retailers got the
rank 2nd and only 13% of the retailers got the rank 3rd. This shows
that in comparison to Coca-Cola, Pepsico.’s GSB are being used in
more proper way.
FFIGUREIGURE 3 3
Out of Coca-Cola and Pepsi Beverages India Limited whose DPS Board do you have ?
PBI27%
Coca-Cola8%
Both 3%
None62%
PBI
Coca-Cola
Both
None
Out of the sample size which has been covered 27 % of the shops had
Pepsi’s DPS Boards vis -a -vis to 8 % of Coca-Cola’s DPS’s.
3 % of the sample size had the DPS Boards of both the major players
of the soft drink industry.
62% of the sample size didn’t have any of the DPS Boards displayed.
FFIGUREIGURE 4 4
Ranking according to visibility - Pepsi ?
82%
18%0%
Rank 1
Rank 2
Rank 3
Ranking according to visibility - Coca Cola ?
70%
18%
12%
Rank 1
Rank 2
Rank 3
82% of the shops having Pepsico. DPS Boards got the rank 1st
according to their visibility status on the other hand 18% of the
retailers got the ranks 2nd and nobody got the 3rd. This shows that
retailers who got the DPS Boards as display material from the
company are using them satisfyingly.
70% of the shops having Coca-Cola DPS Boards got the rank 1st
according to their visibility status on the other hand 18% of the
retailers got the rank 2nd and only 12% of the retailers got the rank
3rd. This shows that in comparison to Coca-Cola, Pepsico.’s DPS
Boards are being used in far more satisfyingly.
FFIGUREIGURE 5 5
Out of the sample size, which has been covered 32 % of the shops,
had Pepsi’s refrigerator vis a vis to 30 % of Coca-Cola’s refrigerator.
This shows that percentage distribution of the refrigerator is almost
equal for both the companies.
11 % of the sample size had the refrigerator of both the major players
of the soft drink industry.
27% of the sample size didn’t have any of the company’s
refrigerators; they are using their own refrigerators for the chilling
purpose.
Out of Coca-Cola and Pepsi Beverages India Limited Whose Refrigerator do you have ?
PBI32%
Coca-Cola30%
Both 11%
Own 27%
PBICoca-ColaBoth Own
FIGURE 6FIGURE 6
Ranking according to visibility - Pepsi ?
68%
24%
8%
Rank 1
Rank 2
Rank 3
Ranking according to visibility - Coca Cola ?
33%
67%
0%
Rank 1
Rank 2
Rank 3
68% of the shops having Pepsico. refrigerators got the rank 1st
according to their visibility status on the other hand only 24% of the
retailers got the ranks 2nd and 8% of the retailers got the rank 3rd. This
shows that retailers who got the refrigerators as display material from
the company are not using them satisfyingly.
Only 33% of the shops having Coca-Cola refrigerators got the rank
1st according to their visibility status on the other hand 67% of the
retailers got the rank 2nd and none of the retailers got the rank 3rd.
This shows that in comparison to Coca-Cola, Pepsico.’s refrigerators
are being used in far more proper way.
FIGURE 7FIGURE 7
PBI, 4260
Coca-Cola, 3368
0500
1000
1500
2000
2500
3000
3500
4000
4500
PBI Coca-Cola
How many Bottles of PBI/ Coca-Cola do you have in your fridge
PBI
Coca-Cola
FFIGUREIGURE
the Pepsico.’s refrigerators 44% of the Coca-Cola bottles were found.
This shows that Pepsico.’s refrigerators are not being used to optimum
by the retailers in promoting Pepsico.’s products.
Availabity Comparision between Pepsi and Coca-Cola at the Outlets - using Pepsi Merchandising Asset
PBI56%
Coca-Cola44% PBI
Coca-Cola
FFIGUREIGURE 9 9
Reasons for not optimum use of Refrigerator / Ice Box at outlets ?
Shortage 13%
Problem of the Empty bottle
17%
Irregularity of the Salesman
34%
Other36%
Shortage
Problem of the Emptybottle
Irregularity of the Salesman
Other
FFIGUREIGURE 10 10
While giving the reasons for not using the Pepsico.’s refrigerators
34% of the retailers blame it to the lack of regular services from the
company (irregularity of the salesman), 17% of the retailers voted to
the problem of the empty bottles of Pepsi Beverages India, 13% voted
for the shortage of the different packing.
Despite of all the above reasons a huge segment 36% blame it to
different other reasons for below optimum use of refrigerators.
Out of the 36% other major reasons low demand (33%) and lesser
capacity refrigerators (34%) got the maximum share.
Despite of all the above there are even major number of retailers who
lame it to the unfulfilled promises from the company professionals.
Other Reasons for low optimum use of Pepsi's Assets
Low Demand34%
Smaller Fridge 33%
Unfulfilled promises from the Company
Representatives22%
Others11% Low Demand
Smaller Fridge
Unfulfilled promises from theCompany RepresentativesOthers
FFIGUREIGURE 11 11
Approximate sale of the retailer
0
1020
3040
50
6070
8090
100
0.5 to 2 3 to 5 6 to 10 More Than 10
FFIGUREIGURE 12 12
Approximate sale of the retailer
0.5 to 28%
3 to 546%
6 to 1028%
More Than 1018%
The sample size shows that maximum portion (around 46 %) of the retailers
whose sale are between 3 to 5 crates daily and only 8 % are the ones who are
selling less that two crates.
FFIGUREIGURE 13 13
How the retailler gets display material from the company ?
0
10
20
30
40
50
60
70
Schemes Gift Sharing / Draft Other
FFIGUREIGURE 14 14
How the retailler gets display material from the company ?
Schemes33%
Gift 40%
Sharing / Draft 21%
Other6%
The sample size gives us the brief idea about the pattern of
distribution of merchandising assets by the companies. Most of the
retailers (around 73%) are getting the display material through
different schemes or as the gifts.
FFIGUREIGURE 15 15
This gives us an indication, where the better prospects lies. In which
particular type of packing little innovation can do wonders. This
provides us with an idea where we should concentrate.
The sample size shows that there is huge demand of 2lt pack (26%)
and 200ml bottles (30%).
300ml bottles with 23% shares the 3rd position and 500ml. Shares the
4th position of the demand total demand with the market demand of
14%
FFIGUREIGURE 16 16
0
100
200
300
400
500
Pepsi Coca-Cola Thums-up
S1
Market Demand of Softdrink ( Cola )
Pepsi
Coca-Cola
Thums-up
FFIGUREIGURE 17 17
Market Demand of Softdrink ( Cola )
Pepsi 39%
Coca-Cola37%
Thums-up 24%
Pepsi
Coca-Cola
Thums-up
Sample size shows the comparison between the market demands of
each of cola drink.
Pepsi is on the top, shares the demand of 39% from the market.
Coca-Cola seconds with the shares of the demand of 39% from the
market beating Thums up with the remaining 24%
FFIGUREIGURE 18 18
Mirinda-O, 260
Fanta, 285
240
250
260
270
280
290
Mirinda-O Fanta
S1
Market Demand of Softdrink ( Orange )
FFIGUREIGURE 19 19
Market Demand of Softdrink ( Orange )
Mirinda-O48%
Fanta52%
Sample size shows the comparison between the market demands of
each of Orange drink.
Mirinda and Fanta are almost head to head with 48% and 52% market
demand. Though Fanta is having 4% more share than Mirinda Orange.
60%
40%
FFIGUREIGURE 20 20
FFIGUREIGURE 21 21
Sample size shows the comparison between the market demands of
each of Lemon drinks available in the market
Limca in the lemon flavour with the market demand share of 31% is
beating all the giants.
Pepsi’s two products Mirinda Lemon and Mountain Dew together
with the market demand share of 55% are competing with the Limca.
The new entrant to the market, Mountain Dew is gaining the market
share more dynamically than its competitor brands.
Sprite and 7 up are lacking behind with just the share of 14%.
FFIGUREIGURE 22 22
FFIGUREIGURE 23 23
Market Demand of Softdrink ( Mango )
Slice, 300
Mazza, 290
Sample size shows the comparison between the market demands of
each of Mango drinks available in the market
Slice and Mazza is almost head to head with 52% and 48% market
demand. Though Slice is having 4% more share than Mazza.
LIMITATION
Despite the possible efforts in conducting the research, there were some
unavoidable situations, which limited the scope of the project.
Considering the population, the sample taken for present study seems
small and hence further investigation may be required.
The sample taken for study was not of equal distribution so a
comparative study cannot be made.
Some of the retailers were non-cooperative in giving information,
which hampered the actual calculation.
Time available for research was very short so certain aspects have
been overlooked.
Retailers were hesitant to provide the complete information due to
fear of misuse of information.
Respondents may sometimes misinterpret the questions, leading to a
different answer.
RECOMMENDATIONS
1. Company should do something to meet its demand in the
market. Because there is an acute shortage of Pepsi 2 Lt party
pack and tin pack because of the shortage, Pepsi is not only
loosing the present market share but also providing way to the
rivals. For this either plant size can be expanded or some more
production equipments can be installed.
2. Since the market capacity is huge salesman needs time at every
retailer to satisfy him and tell him about the different products,
packaging, schemes etc. it’s quite difficult for him to visit every
shop on his route everyday. Therefore, there is necessity to
divide his route into two parts and increase the total number of
routes.
3. Sometimes salesman for different routes keeps on changing
very frequently (in a very short period). This should be
prohibited because every sales man needs time to get adjusted
to a particular route and even to know all the shops on the
route.
4. Salesman is working for 15 to 16 hours regularly during the
peak season at very low reimbursement, which may sometimes
kill his interest. Therefore there is a need of fixing up his
5. Company professions must not make the false promises about
the merchandising assets with the retailers. These retailers must
get the proper information and guidance about the company
policies on the merchandising assets. So that there must be no
frustration generated.
6. Though the GSB’s and DPS Boards are being used by the
retailers satisfyingly but still there is need of the guidance for
the retailers.
7. Schemes should be transparent and made clear to the retaikers.
8. As maximum number of retailers are selling around 3 to 5
crates daily. Our schemes should be revolving around this
percentage only. And while formatting the different schemes
this should be kept in mind.
9. For this salesman can be provided with some kind of guidance/
training, so that they can clear the queries of the customers
about the different schemes/ proposals
10.Retailer benefit schemes, which the company launches time by
time during the whole year, must be made clear to all the
retailers.
11.Customers can be informed about the schemes through the
broachers. Broachers can be distributed to all the retailers for
the schemes that are being launched once in a year. And for the
daily schemes which get change on daily bases and which
depends on the stock availability providing details about the
day's schemes/ after a paper/ pamphlet on different products can
be sticked to the delivery van signed by the TDM or ASM or
anybody authorized. So that every retailer if needed/ required
can verify himself about the daily schemes.
12.Company professionals should visit the field more regularly
and they must try to visit every retailer at least once in a month.
13. A proper trust and relationship building process is required
with the retailers, which need to be worked on.
14.Above figures shows the market demand comparison between
the different products of all the flavors available in the market.
Which show that we can gain market share through Pepsi.
Mirinda- (O) and Mountain Dew. So we should concentrate
more in completing the market demand of these products.
15. Above figures shows the market demand comparison
between the different packs available in the market. Which
show that we can gain market share through concentrating more
on 2Lt. and 200ml. pickings. So we should concentrate more in
completing the market demand of these packing
16.Other products and packing like Mirinda-L and 7 Up and 300
ml. Whose demand is going down require proper attention and
strategy.
CONCLUSIONCONCLUSION
After conducting the research, Researcher found that there are two
categories of retailers. The first one is of those retailers, which just want to
increase their assets, for them the sale doesn’t matter according to them they
can only increase the sale if the company will invest in them or in their
shops. These types of retailers will only work for the company, which invest
in them hugely. And if at any moment they found company has lost or
lowered their interest in them they will again shift to other major player.
Other kinds of retailers are those who are more bothered about working hard
and build their reputation in the market. These types of retailers are using the
merchandising assets to their optimum level. And sometimes if they are
unable to do so it’s because of the irregularity of the salesman (when the
salesman on the route gets changed) or because of the shortage of the
different products/packing.
There is a requirement of the company professionals to visit these retailers
continuously. So, that they can understand the market and suggest changes
accordingly. Despite of this, salesman and other company professionals who
visit these retailers must not do the false promises. Due to this retailers loose
their confidence in the company.
There is also the need of the transparent schemes and marketing mix that the
retailers can understand more properly.
QUESTIONNAIRE
Name of the SHOP ____________________ Tel No. ___________________________
ADDRESS __________________________________________________________
1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?
A. PBI B COCA-COLA C BOTH D NONE
RANKING ACCORDING TO VISIBILITY?
1 2 3
2 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE DPS BOARD DO YOU HAVE?
A. PBI B COCA-COLA C BOTH D NONE
RANKING ACCORDING TO VISIBILITY?
1 2 3
3 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR DO YOU HAVE?
A. PBI B COCA-COLA C BOTH D NONE
RANKING ACCORDING TO VISIBILITY?
1 2 3
4 HOW MANY BOTTLES OF PBI DO YOU HAVE IN YOUR FRIDGE?
PBI _____________________ TOTAL _______________________
5 WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX TO ITS FULL STRENGTH?
A. SHORTAGE B EMPTY PROBLEM C IRREGULARITY OF THE SALESMAN D OTHER
6 APPROXIMATELY HOW MANY CRATES DO YOU SALE?A. 0.5-2 B 3-5 C 6-10 D MORE THAN 10
7 HOW DO YOU GET THE DISPLAY MATERIAL FROM THE COMPANY?A. SCHEMES B GIFT C SHARING / DRAFT D OTHER
8 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?( ) 2 LT. ( ) 1 LT ( ) 500 ML ( ) 300 ML ( ) 200 ML
9 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?A. ( ) PEPSI ( ) COCA-COLA ( ) THUMS-UP B. ( ) MIRINDA-O ( ) FANTA C. ( ) MIRINDA –L ( ) LIMCA ( ) MOUNTAIN-DEW ( )
SPRITE ( ) 7-UP
D. ( ) SLICE ( ) MAAZA
BIBLIOGRAPHY
Name of the books used for the reference and their authors.
1. Principles of Marketing - Kotler Philip
2. Research Methodology - Kothari C.R.
3. Market Research - Sharma D.D.
Websites Referred
http://www.pepsico.comhttp://www.google.comhttp://www.rkg.comhttp://pepsizone.yahoo.com
MAGAZINES
4 PSTime Education Magazine Times of India
PRICE LIST
200 ML Rate-146/caret
300 ML Rate-192/caret
600 ML Rate-444/caret
600 ML(slice) Rate-456/caret
2000 ML Rate-369/pet
2000 ML(Miranda) Rate-324/pet
Tatra (slice) Rate –218 /pet
Aquafina Water Rate-103/Pet
EDS FORMAT
S.No.
Outlet Name
Address
Contact Person
Channel
Status PBI/ CCX
Glass VISI OYC ICE BOXSIGNAGE
Wall Paint DPS GSB
PBI CCX PBI CCX OWN PBI CCX PBI CCX PBI CCX PBI CCX PBI CCX
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