final report

DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH WHICH

PEPSICO INDIA CAN DRIVE INCREMENTAL SALES THROUGH PO1

14BSPHH011206

PepsiCo India Holdings Pvt. Ltd.

“The Belvedere”, H.No.6-3-891 & 892, 2

A REPORT

ON



By

Rishu Gupta

Enrollment No.

14BSPHH011206


891 & 892, 2nd Floor, Raj Bhavan Road, Somajiguda, Hyderabad

Tele: +91 (0)40 30979999

1 | P a g e



Floor, Raj Bhavan Road, Somajiguda, Hyderabad-500082

DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH WHICH PEPSICO INDIA

Enrollment No:


A Report submitted in partial fulfilment of

the requirements of MBA Program of

Mr. Aditya Ahuja

Dr. Surjit Kumar Kar (Faculty Guide)

Date of Submission: 20

A Constituent of the ICFAI Foundation for Higher Education

(A Deemed to be University under section 3 of UGC Act, 1956)

A REPORT

ON

DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH WHICH PEPSICO INDIA CAN DRIVE INCREMENTAL SALES

THROUGH PO1

By

Rishu Gupta

Enrollment No: 14BSPHH011206



the requirements of MBA Program of

IBS Hyderabad

Distribution List:

Mr. Aditya Ahuja (Company Guide)

Dr. Surjit Kumar Kar (Faculty Guide)

Date of Submission: 20th May, 2015

A Constituent of the ICFAI Foundation for Higher Education

(A Deemed to be University under section 3 of UGC Act, 1956)

2 | P a g e

DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH CAN DRIVE INCREMENTAL SALES


This is to certify that this report is submitted in partial fulfilment of the requirement of

program of IBS, Hyderabad. The report is submitted to my faculty guide Dr.

Kar (Faculty Member, IBS-Hyderabad).

This report document titled “

PepsiCo India can drive incremental sales through PO1” is made by Miss. Rishu Gupta

part of the completion of the study at “

internship program under the

Manager, PepsiCo) as the company guide.

This report has been verified and authenticated by:

Dr. Surjit Kumar Kar

Faculty Guide

IBS, Hyderabad.

Authorization

report is submitted in partial fulfilment of the requirement of

program of IBS, Hyderabad. The report is submitted to my faculty guide Dr.

Hyderabad).

This report document titled “Designing and executing various avenues through which

PepsiCo India can drive incremental sales through PO1” is made by Miss. Rishu Gupta

part of the completion of the study at “PepsiCo India Holdings Pvt. Ltd.” during her

the guidance of Mr. Aditya Ahuja (Market

the company guide.

This report has been verified and authenticated by:

3 | P a g e

report is submitted in partial fulfilment of the requirement of MBA

program of IBS, Hyderabad. The report is submitted to my faculty guide Dr. Surjit Kumar

Designing and executing various avenues through which

PepsiCo India can drive incremental sales through PO1” is made by Miss. Rishu Gupta as a

PepsiCo India Holdings Pvt. Ltd.” during her

Mr. Aditya Ahuja (Market Development

ACKNOWLEDGEMENT

“Too often we are so preoccupied with the

An understanding study like this is never an outcome of the efforts of a single person. The

satiation and euphoria that accompany the successful completion of this project would be

incomplete without the mention of the people who made it possible. I would like to express

a word of thanks to all those whose sincere advice, and information made my internship

period educative and informative.

I would like to take the opportunity to thank and

Company guide Mr Aditya Ahuja (Market Development Manager)

me this wonderful opportunity to work with PepsiCo India Holding and to gain

valuable learning experience from it. I am extr

sharing his vision, experiences &

supervision guided me at every stage of the project.

I am greatly indebted to my faculty guide

continuous guidance, insights and encouragement which acted as a continuous source of

support for me during this entire period.

Every endeavour requires an effort or contribution from many people and this is no

different. I wish to express my sincere thanks to Miss Harika Chappa (Management

Trainee, Mr Pavan Kumar Nomula (

Reddy who in spite of their busy schedule has co

their valuable contribution and guidance have been certainly indispensible for my project

work. Last but not the least

Customer Executives and the PSRs (Presales Representatives) for their cooperation and

assistance during the course of my project.

I hope that I can build upon the experience and knowledge th

valuable contribution towards this industry in coming future.

ACKNOWLEDGEMENT

“Too often we are so preoccupied with the destination, we forget the guiding light.”



the mention of the people who made it possible. I would like to express


period educative and informative.

I would like to take the opportunity to thank and express my deep sense of gratitude to my

Mr Aditya Ahuja (Market Development Manager)


valuable learning experience from it. I am extremely grateful to him for continuously

sharing his vision, experiences & for his unconditional support. His

supervision guided me at every stage of the project.

I am greatly indebted to my faculty guide Dr. Surjit Kumar Kar


support for me during this entire period.


ess my sincere thanks to Miss Harika Chappa (Management

Mr Pavan Kumar Nomula (Market Development Executive) and Mr. Srinivas

Reddy who in spite of their busy schedule has co-operated with me continuously and indeed,

luable contribution and guidance have been certainly indispensible for my project

Last but not the least I owe my whole hearted thanks and appreciation to all the


ssistance during the course of my project.

I hope that I can build upon the experience and knowledge that I have gained

valuable contribution towards this industry in coming future.

4 | P a g e

destination, we forget the guiding light.” –

Anonymous



the mention of the people who made it possible. I would like to express


express my deep sense of gratitude to my

Mr Aditya Ahuja (Market Development Manager) for giving


emely grateful to him for continuously

his unconditional support. His patience and

for providing me



ess my sincere thanks to Miss Harika Chappa (Management

Market Development Executive) and Mr. Srinivas

operated with me continuously and indeed,

luable contribution and guidance have been certainly indispensible for my project

I owe my whole hearted thanks and appreciation to all the


at I have gained and make a

PepsiCo Hyderabad is the only unit across world chos

begins with the unique ability to connect with consumers. According to an internal study of

the company, about 60 percent of the time people consume a salty snack along with a

refreshment beverage where as only 30 perce

snack and also buy a refreshment beverage. So PO1 is an initiative to leverage the existing

gap of 30 percent which we can capitalize on the leading positions of our iconic brands in

both categories to drive the

globally, this idea is more powerful than ever.

PepsiCo Hyderabad has initiated a small pilot in which we are offering PO1 combos in

certain bakery outlets and trying to understand its impact on tr

I have designed certain collaterals and tied up with some outlets to ensure the success of the

initiative. The outlets have been chosen on the basis of Sale and whether they are Mix or

Exclusive.

I will be tracking the sales of the outlet and design a Questionnaire to see the trend and gather

learning which can help the company to expand it to the rest of the unit.

ABSTRACT

PepsiCo Hyderabad is the only unit across world chosen for PO1 project.



refreshment beverage where as only 30 percent of the time it is when people buy a salty



purchase of our snacks and beverages together. As we grow

globally, this idea is more powerful than ever.


certain bakery outlets and trying to understand its impact on trade, shopper and the consumer.



of the outlet and design a Questionnaire to see the trend and gather

learning which can help the company to expand it to the rest of the unit.

5 | P a g e

en for PO1 project. The Power of One



nt of the time it is when people buy a salty



purchase of our snacks and beverages together. As we grow


ade, shopper and the consumer.



of the outlet and design a Questionnaire to see the trend and gather

I. Authorization

II. Acknowledgement

III. Abstract

1. Introduction

1.1 Background

1.2 Objective

1.3 Scope of the Study

1.4 Limitations

1.5 Methodology

2. Industry Analysis

2.1 Categories of Beverage

2.2 Categories of Snack

3. Company Analysis

3.1 Company Overview

3.2 Portfolio of PepsiCo

3.3 The Joint Venture

4. The Distribution Process

4.1 The different channels of PepsiCo

4.2 8 steps of a Sales Call

4.3 The Market Model

5. Traditional Trade

5.1 Modus Operandi

5.2 Classification of Routes

5.3 Customer Executive

5.4 Pre Sales Representative

5.5 SAMNA

Table of Content

Authorization

Acknowledgement

Introduction

Scope of the Study

Methodology

Industry Analysis

Categories of Beverage

Categories of Snack

Company Analysis

Company Overview

PepsiCo

The Joint Venture

The Distribution Process

The different channels of PepsiCo

8 steps of a Sales Call

The Market Model

Traditional Trade

Modus Operandi

Classification of Routes

Customer Executive

Pre Sales Representative

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3

4

5

10 - 12

10

10

11

11

12

13 - 15

14

15

16 - 27

16

17

26

27 - 31

28

28

31

32 - 36

32

32

32

32

33

5.6 Pricing structure and Margin structure of beverage

5.7 Pricing structure and Margin structure of food SKU’s

6. Organised Trade

6.1 On Premise

6.2 Modern Trade

7. Difference between the different channels

8. Project specific Analysis

8.1 PO1

8.2 Background of the project

8.3 Considerations for selecting the Sample outlets

8.4 Survey to understand the choice of Combo

8.5 Designing of the Perfect combo

8.6 Designing of the Collaterals

8.7 Execution Phase

8.8 Spot Testing

8.9 Sales Analysis

9 Recommendations and Suggestions

10 Annexure

11 References

12 Glossary

Pricing structure and Margin structure of beverage

Pricing structure and Margin structure of food SKU’s

Organised Trade

Modern Trade

Difference between the different channels

Project specific Analysis

Background of the project

Considerations for selecting the Sample outlets

Survey to understand the choice of Combo

Designing of the Perfect combo

Designing of the Collaterals

Execution Phase

Spot Testing

Sales Analysis

Recommendations and Suggestions

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34

Pricing structure and Margin structure of food SKU’s 36

39 - 40

39

40

41

42 - 64

42

43

43

46

51

53

57

58

64

65

66

69

70

Figure 1 Categories of Beverages

Figure 2 Categories of Snack

Figure 3 PepsiCo Overview

Figure 4 Different Channels of PepsiCo

Figure 5 Planogram of PepsiCo

Figure 6 Market Model

Figure 7 PSR with SAMNA

Figure 8 Categories of On

Figure 9 Categories of Modern Trade

Figure 10 Details of the 30 Sample Bakery Outlets

Figure 11 POS Message

Figure 12 Outlets with Banner

Figure 13 Outlets with Tent Cards on Table Top

Figure 14 Outlets with Live Display

Figure 15 Sample of Customer detail form and Manual Bill

Figure 16 Tally record during Pilot testing

Figure 17 Spot testing in a Small Outlet

Figure 18 Spot Testing in a Big Outlet

List of Figures

Categories of Beverages

Categories of Snack

PepsiCo Overview

Different Channels of PepsiCo

Planogram of PepsiCo

Market Model

PSR with SAMNA

Categories of On - Premise

Categories of Modern Trade

Details of the 30 Sample Bakery Outlets

POS Message

Outlets with Banner

Outlets with Tent Cards on Table Top

Outlets with Live Display

Sample of Customer detail form and Manual Bill

Tally record during Pilot testing

Spot testing in a Small Outlet

Spot Testing in a Big Outlet

8 | P a g e

14

15

16

28

30

31

33

39

40

45

55

55

56

56

56

58

59

60

1. INTRODUCTION

1.1. BACKGROUND

The Project comprises of designing and executing various avenues through which

PepsiCo India can drive incremental sales through PO1 that is integration of snacks and

beverages, with a major focus on bakery channel

The integration of drink and Snack is very much like Bundling of the product

Selling. This activity of cross selling

and behaviour and has traditionally been used to increase sales and consumer

about the company’s brand and product.

adopted by the companies for selling an additional product to an existing customer

Selling strategy is employed by companies in different industries and

of markets.

1.2. OBJECTIVE

Study the Master

contribution to the company

Design different combos for the outlet on a customized basis.

To develop different marketing tools for the advertisement in the chosen

outlets.

To monitor the sales, measure the outcome and take corrective measures there

by.

INTRODUCTION

BACKGROUND



focus on bakery channel in the market of Hyderabad

The integration of drink and Snack is very much like Bundling of the product

cross selling the product aims at influencing consumer’s attitude

r and has traditionally been used to increase sales and consumer

about the company’s brand and product. Cross selling is a common marketing strategy

adopted by the companies for selling an additional product to an existing customer

strategy is employed by companies in different industries and

Master data and prioritize the outlets on the basis of their business

contribution to the company for the pilot testing.


different marketing tools for the advertisement in the chosen


9 | P a g e



in the market of Hyderabad.

The integration of drink and Snack is very much like Bundling of the product and Cross

the product aims at influencing consumer’s attitude

r and has traditionally been used to increase sales and consumers awareness

is a common marketing strategy

adopted by the companies for selling an additional product to an existing customer. Cross

strategy is employed by companies in different industries and on different kinds

data and prioritize the outlets on the basis of their business


different marketing tools for the advertisement in the chosen


1.3. SCOPE OF THE

It broadly contains certain avenues through which PepsiCo India

Po1, and design collaterals which is best suited for combo packs

The aim of this project is to find out the ways or the avenues through which PepsiCo India

can increment its sales through Power of One. Majorly it focuses on the factors tha

the sales parameters and also understand the impact of combos on the trade, shopper and the

consumer.

Understanding of the trend through tracking the sales of combo

Questionnaire in order to help the company to expand to

concern.

1.4. LIMITATIONS

Though I have put in all my earnest efforts in

project and I have received

helpful and cooperative in this regard. I would still like to

under which the study was conducted.

Time was one of the major constraints that affected the study

Not familiar with the local

The Retailer’s survey covers only few parts of Hyderabad

analysis or regional analysis from any other part may vary with these findings.

Tracking the Sale was one of the major challenge as we coul

beverage and the food packet as the beverage need to be charged on the

cooler.

SCOPE OF THE STUDY

certain avenues through which PepsiCo India can increment

design collaterals which is best suited for combo packs


can increment its sales through Power of One. Majorly it focuses on the factors tha


Understanding of the trend through tracking the sales of combos and also maintaining a

Questionnaire in order to help the company to expand to the rest of the Unit is the main

LIMITATIONS

Though I have put in all my earnest efforts in the attempt to penetrate deep into the

received a lot of support from the company employees who were

helpful and cooperative in this regard. I would still like to list down certain limitations

under which the study was conducted.

Time was one of the major constraints that affected the study

Not familiar with the local language was one of the biggest challenge.

The Retailer’s survey covers only few parts of Hyderabad, so the national


Tracking the Sale was one of the major challenge as we coul


10 | P a g e

can increment sales through


can increment its sales through Power of One. Majorly it focuses on the factors that influence


s and also maintaining a

the rest of the Unit is the main

attempt to penetrate deep into the

employees who were very

list down certain limitations

Time was one of the major constraints that affected the study.

language was one of the biggest challenge.

, so the national


Tracking the Sale was one of the major challenge as we could not Bundle the


1.5. METHODOLOGY

The complete study of the market is based on the primary data i.e. the total business made by

the outlet by referring to the master datab

SKU details at each store by maintaining excel sheets, followed by d

collaterals for combo packs based on the maximum demanded SKU.

the combos the selling story,

outlet is to be designed. Once the pilot is imple

maintained to record the combo sales by the end of the pilot. A ceiling of 30% of the total

sales is kept for the combos in order to control the pilot.

The nature of this type of research is explorato

and collected the various required details from the store

observed the customers and t

influencing their sales. Parallel to it I was also

for the outlet. I was also asked to notice the SKU’S with maximum sale in a particular outlet

and along with it design different marketing tools for the particular outlet.

In the starting days I tried to understand the

operations in order to execute the pilot efficiently and effectively.

into 2 parts. Firstly ,I went to the market and

learning from the CE’s and PSR’s about various benchmarks on execution of Traditional

trade (TT) .This period was the longest

of the Beverages industry and the Food industry. Here, I

visits to the outlets.

In the second phase I was introduced to a whole new dimension of the business called

Organised Trade (OT). Organised trad

chains, Malls and 5 star hotels .There is a stark contrast in the way business is conducted in

both TT and MT.

METHODOLOGY


the outlet by referring to the master database of the company and collecting the sales and

SKU details at each store by maintaining excel sheets, followed by d

combo packs based on the maximum demanded SKU. After the designing of

the combos the selling story, the communication and advertisement material for the chosen

. Once the pilot is implemented, a manual bill with the outlet is

the combo sales by the end of the pilot. A ceiling of 30% of the total

the combos in order to control the pilot.

The nature of this type of research is exploratory. For this purpose, I visited different stores

and collected the various required details from the store owners. In the initial weeks I

observed the customers and their buying behaviour; analyzed the stores and the fac

influencing their sales. Parallel to it I was also studying and designing on various collaterals

also asked to notice the SKU’S with maximum sale in a particular outlet

ong with it design different marketing tools for the particular outlet.

tried to understand the functioning of the Customer Executives

in order to execute the pilot efficiently and effectively. This phase was d

went to the market and assessed the situation ,got the


trade (TT) .This period was the longest and the most edifying ,giving me the complete picture

and the Food industry. Here, I collected primary data from the

introduced to a whole new dimension of the business called

Organised Trade (OT). Organised trade meant dealing with big retailers like Super market


11 | P a g e


ase of the company and collecting the sales and

SKU details at each store by maintaining excel sheets, followed by designing different

After the designing of

communication and advertisement material for the chosen

bill with the outlet is

the combo sales by the end of the pilot. A ceiling of 30% of the total

visited different stores

owners. In the initial weeks I

analyzed the stores and the factors

ing on various collaterals

also asked to notice the SKU’S with maximum sale in a particular outlet

functioning of the Customer Executives and their

This phase was divided

assessed the situation ,got the preliminary


the complete picture

collected primary data from the

introduced to a whole new dimension of the business called

e meant dealing with big retailers like Super market


2. INDUSTRY ANALYSIS

If we consider FMCG industry, selling a soap bar is completely

of Pepsi. The difference lies in how the particular product is sold and more importantly, how

it is distributed. So if we talk about food or beverage industry in particular it comes with an

expiry date which ranges from

other FMCG products have expiry date in years. Food and beverage products need extra

careful handling. A slight damage in packaging is enough for their rejection. Especially in

beverage industry where drinks are sold in glass bottles, proper handling is very

important due to fragile nature of the glass bottles. In recent time’s food and beverage

industry has undergone large scale transformation, huge advertisement spending,

awareness campaign about the products and brands. But the key factors to success remains

still the same as distribution and advertising. All the above factors have made sales and

distribution of food and beverages products very different from other FMC

sales person, the primary responsibility is to ensure optimal re

among the retailers in the assigned area. Simply, they must ensure that all the brand

all the products manufactured/marketed by the em

outlets as possible in their area. If stock exhaustion happens in any of the outlets,

company is likely to lose end

buy a product - he is likely to switch, and even if he is not inclined to do so, the retailer will

make them switch as he hates losing a customer to his competitor down the street. This

automatically means distributor should be stocked in sufficient quantity in

packs, allowing for seasonal fluctuations and production vagaries.

Majority of sales in beverage industry comes from Soft drinks

part and parcel of the Indian

Indian soft drinks are enjoyed by one and all in the country. Especially after the influx of a

number of fast food joints in India soft drinks have gained more popularity.

Consumer lifestyle has chang

almost every meal that one has outside his/her home.

The soft drink industry in India is categorized on the basis of

carbonated drinks. The carbonated drinks include flavours like cola, lemon and orange and

the non carbonated drinks segment includes mostly mango flavours along with fruit

INDUSTRY ANALYSIS

If we consider FMCG industry, selling a soap bar is completely different than selling a bottle



expiry date which ranges from few days to few months (3 to 8 months), where as



ry where drinks are sold in glass bottles, proper handling is very





distribution of food and beverages products very different from other FMC

sales person, the primary responsibility is to ensure optimal re-distribution of the product

among the retailers in the assigned area. Simply, they must ensure that all the brand

all the products manufactured/marketed by the employer are available in as many retail


company is likely to lose end-consumers. The Indian consumer rarely marches a mile to

s likely to switch, and even if he is not inclined to do so, the retailer will


automatically means distributor should be stocked in sufficient quantity in

packs, allowing for seasonal fluctuations and production vagaries.

Majority of sales in beverage industry comes from Soft drinks which has nowadays

f the Indian lifestyle. Be it children, the college kid or the mid



Consumer lifestyle has changed significantly and now day’s soft drinks are enjoyed with

almost every meal that one has outside his/her home.

The soft drink industry in India is categorized on the basis of carbonated

. The carbonated drinks include flavours like cola, lemon and orange and


12 | P a g e

different than selling a bottle



few days to few months (3 to 8 months), where as



ry where drinks are sold in glass bottles, proper handling is very





distribution of food and beverages products very different from other FMCG products. So for

distribution of the product

among the retailers in the assigned area. Simply, they must ensure that all the brand-packs of

ployer are available in as many retail


consumers. The Indian consumer rarely marches a mile to

s likely to switch, and even if he is not inclined to do so, the retailer will


automatically means distributor should be stocked in sufficient quantity in all brand-

which has nowadays become

ge kid or the middle aged



t drinks are enjoyed with

carbonated and non

. The carbonated drinks include flavours like cola, lemon and orange and


juices and squashes. The Top Soft Drink Brands in India are Coca

Up. The other popular soft drink brands in India include Mirinda, 7Up, F

etc. In order to cater to all the segments of the society these top soft drink brands are

available in numerous sizes starting from the age old 300 ml

ml ones and also the 500 ml and 1liter plastic bottles. Soft drinks are available in almost

every size desired by the consumer. Soft drinks do not only rule the urban markets they

have successfully managed to pene

ml are higher than the PET bottles.

Market is changing continuously due to consumer taste and preference and also due to rise of

competition by many new brands and local beverage manufacturers.

2.1. Categories of Beverage

Figure 1: Categories of Beverage

LRB

(Liquid Refreshmnet

Beverage)

juices and squashes. The Top Soft Drink Brands in India are Coca-Cola, Pepsi and Thumps

Up. The other popular soft drink brands in India include Mirinda, 7Up, F


available in numerous sizes starting from the age old 300 ml glass bottles to the 200


consumer. Soft drinks do not only rule the urban markets they

have successfully managed to penetrate the rural areas as well where sale of 200 ml and 300

ml are higher than the PET bottles.


competition by many new brands and local beverage manufacturers.

Categories of Beverage

Figure 1: Categories of Beverage

BSD

(Bottled Soft Drink)

CSD

(Carbonated Soft Drink)

JBD

(Juice BasedDrink)Juices

Water

13 | P a g e

Cola, Pepsi and Thumps

Up. The other popular soft drink brands in India include Mirinda, 7Up, Fanta, Sprite, Limca


glass bottles to the 200


consumer. Soft drinks do not only rule the urban markets they

trate the rural areas as well where sale of 200 ml and 300


Cola

Lemon

Orange

2.2. Categories of Snacks

POTATO CHIPS

Categories of Snacks

Figure 2: Categories of Snack

SNACKS

COLLET

(Kurkure)EXTRUDED

(Cheetos)TRADITIONAL

14 | P a g e

TRADITIONAL OTHERS

3. COMPANY ANALYSIS

PEPSICO INDIA

PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage

businesses in India. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi,

Lay’s, Kurkure, Tropicana 100%, Gatorade and Quaker.

Lay, is the leader in the branded salty snack market.

3.1. COMPANY OVERVIEW

Name PepsiCo

Industries Served Beverages, Food

Indian

Headquarters

Gurgaon, Haryana

Facilities 38 bottling plants and 3 food plants

Employees Presently employs 6400 people and provides indirect employment

almost 2

Main Competitor Coca-

Mission To be the world's premier consumer Products Company focused on

convenient foods and

Vision To continually improve all aspects of the world in which we operate

environmental, social, economic

today

COMPANY ANALYSIS



Lay’s, Kurkure, Tropicana 100%, Gatorade and Quaker. PepsiCo’s foods compan

Lay, is the leader in the branded salty snack market.

COMPANY OVERVIEW

PepsiCo

Beverages, Food

Gurgaon, Haryana

38 bottling plants and 3 food plants

Presently employs 6400 people and provides indirect employment

almost 200,000 people

-Cola Company, Parle and local brands

To be the world's premier consumer Products Company focused on

convenient foods and beverages.

To continually improve all aspects of the world in which we operate

environmental, social, economic – creating a better tomorrow than

today

Figure 3: PepsiCo Overview

15 | P a g e



PepsiCo’s foods company, Frito-

Presently employs 6400 people and provides indirect employment to

To be the world's premier consumer Products Company focused on

To continually improve all aspects of the world in which we operate –

creating a better tomorrow than

3.2. THE PORTFOLIO OF PEPSICO

The diverse portfolio of brands include the flagship cola brand

Mirinda, Mountain Dew, Nimbooz, Slice fruit juices, Tropicana brand with their delight and

premium fruit juices ranges in various flavours, Aquafina packaged drinking

Lehar Soda.

The Big 3 rightly named by PepsiCo are Pepsi, 7up and Mirinda because of high volumes of

sales.

Besides all this, PepsiCo is in charge of the marketing of Lipton tea and Himalayan water.

PepsiCo is also a dominant player in th

company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's

Potato Chips, Cheetos, Uncle Chips, traditional snacks under the Kurkure and Lehar brands

and also Quaker Oats.

PEPSI

One of the largest selling soft drink brand in India which is more than

hundred-year-old which is loved by 200 million people worldwide.

Flagship brand of PepsiCo which has become an iconic youth brand as it

promotes its brand with help of

Indian youth very fast.

Segment For all people seeking a soft drink for regular occasions,

parties

Target group All age groups l

Positioning An iconic youth brand

USP The

Tagline Live it Abhi

THE PORTFOLIO OF PEPSICO

The diverse portfolio of brands include the flagship cola brand – Pepsi, Diet Pepsi, 7Up,


premium fruit juices ranges in various flavours, Aquafina packaged drinking



PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack food

Lay is the leader in the branded potato chip market. It manufactures Lay's



old which is loved by 200 million people worldwide.


promotes its brand with help of famous celebrities which can connect to

For all people seeking a soft drink for regular occasions,

parties

All age groups lower, middle and upper class people

An iconic youth brand

The single largest selling soft drink brand

Live it Abhi

16 | P a g e

Pepsi, Diet Pepsi, 7Up,


premium fruit juices ranges in various flavours, Aquafina packaged drinking water; Gatorade,



e snack food segment in India. PepsiCo's snack food

Lay is the leader in the branded potato chip market. It manufactures Lay's



old which is loved by 200 million people worldwide.


famous celebrities which can connect to


ower, middle and upper class people

7UP

7UP was launched in India in 1990 and its international

mascot Fido Dido was used for advertising in 1992 to

position the brand as a cool drink for youngsters. 7up initially

started it’s marketing centred around the famous mascot

DIDO but then with time dropped the famous mascot and began

to concentrate on the lemon factor and came up with a new

tagline " The lemon drink' .

Segment For all people seeking a soft drink for regular occasions,

parties

Target Group All age

Positioning The cool Lemon Drink (Coolness factor)

USP Refreshing clear drink with a natural lemon and lime flavo

Tagline Dil Bole I Feel UP

MIRINDA

Mirinda is a brand of soft drink originally created in Spain which is owned by PepsiCo since

1970, and was launched in India in 1991.Mirinda

has always stood for great

encouraged one to be more carefree, spontaneous

and playful and occasionally give in to an

impulse of uninhibited fun

Segment For all people seeking a soft drink for regular occasions, parties

Target Group All age groups Lower, middle and upper class people

Positioning The carefree, spontaneous and playful soft drink

USP Orange based aerated soft drink

Tagline Pagal Panti bhi Zarrori Hai

7UP was launched in India in 1990 and its international

mascot Fido Dido was used for advertising in 1992 to

position the brand as a cool drink for youngsters. 7up initially

started it’s marketing centred around the famous mascot FIDO

DIDO but then with time dropped the famous mascot and began

to concentrate on the lemon factor and came up with a new


parties

All age groups lower, middle and upper class people

The cool Lemon Drink (Coolness factor)

Refreshing clear drink with a natural lemon and lime flavo

Dil Bole I Feel UP

is a brand of soft drink originally created in Spain which is owned by PepsiCo since

1970, and was launched in India in 1991.Mirinda

has always stood for great bold taste that

encouraged one to be more carefree, spontaneous

ionally give in to an

For all people seeking a soft drink for regular occasions, parties

All age groups Lower, middle and upper class people

The carefree, spontaneous and playful soft drink

Orange based aerated soft drink

Pagal Panti bhi Zarrori Hai

17 | P a g e


ower, middle and upper class people

Refreshing clear drink with a natural lemon and lime flavour

is a brand of soft drink originally created in Spain which is owned by PepsiCo since



Mountain Dew

Original formula was invented in Virginia and drink was first sold in Tennessee in 1948. It

was launched in India in 2003

campaign ‘Cheetah Bhi Peeta Hai’.

always tried to portray bold, adventurous and

rebellious spirit of youth by showing high

adrenaline advertising and its connection to

outdoor adventure.

Segment Aerated beverages and soft

Target Group Young individuals from the upper

Positioning Celebrating the bold, adventurous and rebellious spirit of youth

USP High energy Extreme citrus taste

Tagline Darr ke Aage Jeet hai

Slice

Slice was launched in India in 1993 as a refreshing mango drink and

to become a leading player in

the category. While other

players have portrayed the

mango as a simple and

innocent fruit, Slice

celebrates the sheer

indulgence and sensuality

involved in consuming a mango

portfolio.


was launched in India in 2003 with ad

Peeta Hai’. Brand has

always tried to portray bold, adventurous and

rebellious spirit of youth by showing high-

adrenaline advertising and its connection to

Aerated beverages and soft drinks

Young individuals from the upper and middle class

Celebrating the bold, adventurous and rebellious spirit of youth

High energy Extreme citrus taste

Darr ke Aage Jeet hai

Slice was launched in India in 1993 as a refreshing mango drink and

to become a leading player in

the category. While other

players have portrayed the

mango as a simple and

innocent fruit, Slice

celebrates the sheer

indulgence and sensuality

involved in consuming a mango. It had recently added Tropicana Slice Alphonso to the

18 | P a g e


and middle class

Celebrating the bold, adventurous and rebellious spirit of youth

Slice was launched in India in 1993 as a refreshing mango drink and quickly went on

lice Alphonso to the

Segment For all people seeking fruit drink for regular occasions, parties

Target Group Youth in their late teens and twenties

Positioning Pure Mango Pleasure

USP Mango for all seasons

Tagline Alphonso

Nimbooz

Nimbooz was launched in India on the 28th of

as India’s first nationally ava

The product has been created to suit Indian tastes. Nimbooz

will be relevant and affordable offering for

go because of its ready-to

convenient and hygienic.

Segment For all people seeking a soft drink for regular occasions, parties


Positioning Lemon based freshness drink

USP Non aerated lemon drink

Tagline Ekdum Asli Indian

For all people seeking fruit drink for regular occasions, parties

Youth in their late teens and twenties

Pure Mango Pleasure

Mango for all seasons

Alphonso the king of Mangoes

Nimbooz was launched in India on the 28th of February 2009

available packaged Nimbu Pani.

The product has been created to suit Indian tastes. Nimbooz

affordable offering for consumers on the

to-drink format that is both



Lemon based freshness drink

Non aerated lemon drink

Ekdum Asli Indian

19 | P a g e

For all people seeking fruit drink for regular occasions, parties



Tropicana

Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off

It is committed to fostering

healthy lifestyles by ensuring

that its products are naturally

nutritious and provide the daily

benefits that one needs.

In India, Tropicana comes in

two categories: 100% Juices

(sold as Tropicana 100%) and

Juice Beverages (sold as

Tropicana).

Segment Fruit based beverage

Target Group Youth of middle income

Positioning Healthy fruit juice to give the nutrients required daily

USP High quality juice beverages and nectar

Tagline Let’s make breakfast 100%

Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off

It is committed to fostering

healthy lifestyles by ensuring

that its products are naturally

nutritious and provide the daily

In India, Tropicana comes in

two categories: 100% Juices

(sold as Tropicana 100%) and

ld as

Fruit based beverage

Youth of middle income

Healthy fruit juice to give the nutrients required daily

High quality juice beverages and nectar

Let’s make breakfast 100%

20 | P a g e

Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off-trade volume.

AQUAFINA

As soon as it was launched in the US in 1994 it became the bestselling brand in the

country due to its unique purification

system and great taste. In India it got

launched nationally by 2000 and became

one of India’s leading brands of bottled

water due to strength of its brand appeal

and distribution.

Segment For all people seeking hygienic drinking water


Positioning Pure and great taste of water

USP 5 step state

pure water and perfect taste

Tagline The purest part of you

GATORADE

Gatorade is World’s No.1 Sports Drink which was launched in India in 2004. It is an optimal

mix of water, carbohydrates and essential mineral salts

get absorbed instantly to rehydrate, replenish and refuel

like no other beverage can. It has become an integral part of

the kitbags of many leading sportspersons.


country due to its unique purification

system and great taste. In India it got

launched nationally by 2000 and became

nds of bottled

water due to strength of its brand appeal

For all people seeking hygienic drinking water


Pure and great taste of water

step state-of-the-art purification process to give consumers

pure water and perfect taste

The purest part of you


mix of water, carbohydrates and essential mineral salts that

rehydrate, replenish and refuel

has become an integral part of

the kitbags of many leading sportspersons.

21 | P a g e



art purification process to give consumers


Segment Sportsmen/Youngsters preferring flavo

Target Group Young sportsperson

Positioning Replenishes energy of a sportsman/athlete/young men and women

USP World’s No.1 Sports Drink

Tagline Rehydrate replenish refuel

Lays

Lay’s is the world’s largest

itself as an indispensable part of India’s snacking culture since its launch in 1995. Lay’s has

established itself as a youth brand and

continues to grow in the hearts and mind

of its consumers. Lay’s is made with

India’s best-quality fresh potatoes,

simply sliced and cooked in edible

vegetable oils, and then seasoned with

delicious flavours.

Segment Snack Food

Target Group Youth

Positioning Youth Brand

Tagline Pal Banaye Magical

Sportsmen/Youngsters preferring flavoured sports drink

Young sportsperson

Replenishes energy of a sportsman/athlete/young men and women

World’s No.1 Sports Drink

Rehydrate replenish refuel

largest and favourite snack food brand. It has steadily established


established itself as a youth brand and

continues to grow in the hearts and mind

of its consumers. Lay’s is made with

quality fresh potatoes,

simply sliced and cooked in edible

vegetable oils, and then seasoned with

Snack Food

Youth

Youth Brand

Pal Banaye Magical

22 | P a g e

red sports drink

Replenishes energy of a sportsman/athlete/young men and women

. It has steadily established


Kurkure

Kurkure is a crunchy new-age namkeen snack

brand which symbolizes light

Launched in 1999, its a perfect ‘namkeen’

snack, developed entirely in India, has come to

be identified with fun and lovable human

quirks.

Segment

Target Group

Tagline

Cheetos

Cheetos, a global brand, launched in India in 1995

has been positioned as a brand which inspires

imagination and a sense of adventure and fun.

Chester Cheetah is Cheetos’ brand mascot. Chester

Cheetah is the “Cool Cat” who accompanies kids

in their adventures.

Segment Snacks

Target Group Kids

Tagline Take a Cheetos break with Cheetos

age namkeen snack

brand which symbolizes light-hearted fun.

Launched in 1999, its a perfect ‘namkeen’

in India, has come to

be identified with fun and lovable human

Namkeen Snack

Youth

Tedha hai par mera hai

, a global brand, launched in India in 1995

has been positioned as a brand which inspires

imagination and a sense of adventure and fun.

Chester Cheetah is Cheetos’ brand mascot. Chester

Cheetah is the “Cool Cat” who accompanies kids

Take a Cheetos break with Cheetos

23 | P a g e

Uncle Chipps

Launched in 1992, Uncle Chipps

brand was acquired from Amrit

Agro Ltd. in 2000 by Frito-Lay

India.. Uncle Chipps is warm,

playful, lively, companionable

and traditional at heart, just like

the good-natured uncle.

Segment Potato Chips

Target Group All age group people

Tagline Bole mere Lips I love Uncle Chipps

Lehar

Lehar was launched in 1996

brand positioned itself by

emphasizing its irresistible taste and

using modern imagery. It promised

to deliver good taste through the use

of fresh oil in the manufacturing

process. They have 35 range of

varied namkeen.

Segment Traditional Namkeen

Target Group All age group people

Tagline Khushiyon ka khazana

Chipps was a pioneer in branded potato chips

brand was acquired from Amrit

Lay

Chipps is warm,

playful, lively, companionable

and traditional at heart, just like

Potato Chips

All age group people

Bole mere Lips I love Uncle Chipps

1996, with innovative small packs and traditional flavours. The

brand positioned itself by

emphasizing its irresistible taste and

using modern imagery. It promised

to deliver good taste through the use

of fresh oil in the manufacturing

nge of

Traditional Namkeen

All age group people

Khushiyon ka khazana

24 | P a g e

chips in India.The

innovative small packs and traditional flavours. The

Quaker Oats

The brand Quaker is more than 130 years old and is a world leader in the oatmeal segment.

Quaker Oats was launched in India in

and has a range of Quick Cooking Oats. Quaker Oats is a 100%

wholegrain and natural source of carbohydrates and dietary fibre

Segment Oatmeal

Target Group Person looking for balanced, active and healthy

lifestyle

Tagline For a healthier, happier you

3.3. THE JOINT VENTURES

PEPSI LIPTON INTERNATIONAL

It is a 50:50 joint venture between Pepsi and Unilever to manufacture and markets Lipton Ice

Tea variants in 67 countries.

product portfolio.

Lipton Ice Tea is a global product that offers a

combination of great taste and refreshment on

the go. It is available in two variants: Green Tea

in Mint & Lemon flavour; and Black Tea in

Lemon flavour.


Quaker Oats was launched in India in 2006. It has a national presence

and has a range of Quick Cooking Oats. Quaker Oats is a 100%

wholegrain and natural source of carbohydrates and dietary fibre

Oatmeal

Person looking for balanced, active and healthy

lifestyle

For a healthier, happier you

THE JOINT VENTURES

PEPSI LIPTON INTERNATIONAL

venture between Pepsi and Unilever to manufacture and markets Lipton Ice

Tea variants in 67 countries. The Lipton ice tea will add to PepsiCo's health and wellness

Lipton Ice Tea is a global product that offers a

combination of great taste and refreshment on

available in two variants: Green Tea

in Mint & Lemon flavour; and Black Tea in

25 | P a g e


venture between Pepsi and Unilever to manufacture and markets Lipton Ice

health and wellness

NOURISHCO

A joint venture between Tata Global Beverages Limited and PepsiCo India Holdings Private

Limited, NourishCo aims to provide meaningful hydration solutions in the non

ready-to-drink beverages segment in India and around the world. The

through a joint venture agreement between Tata and PepsiCo India. NourishCo has a vision

for growth and has tremendous potential with ‘good for you’ products.

NourishCo will be keenly focused on enhancing the hydration category in In

portfolio includes 3 Products which straddle the Top & Bottom End of the Pyramid in the

Beverages space:

Tata Gluco Plus, a glucose based drink in

an affordable cup format, Himalayan

Natural Mineral Water, pristine source

water and now Tata Water Plus, Nutrient

Water, an innovative product that seeks to

provide essential micronutrients. The

group has built an expansive pipeline of

innovations that will be used to fuel

growth and create newer hydration

solutions.


Limited, NourishCo aims to provide meaningful hydration solutions in the non

drink beverages segment in India and around the world. The JV was formed in 2010


for growth and has tremendous potential with ‘good for you’ products.

NourishCo will be keenly focused on enhancing the hydration category in In


Tata Gluco Plus, a glucose based drink in

an affordable cup format, Himalayan

Natural Mineral Water, pristine source

r Plus, Nutrient

Water, an innovative product that seeks to

provide essential micronutrients. The

group has built an expansive pipeline of

innovations that will be used to fuel

growth and create newer hydration

26 | P a g e


Limited, NourishCo aims to provide meaningful hydration solutions in the non-carbonated,

JV was formed in 2010


NourishCo will be keenly focused on enhancing the hydration category in India. The


4. THE DISTRIBUTION PROCESS

4.1. The DIFFERENT CHANNELS OF PEPSICO

Figure 4: Different Channels of PepsiCo

4.2. 8 STEPS OF A SALES CALL

Pepsi follows a certain practice when it goes for its sales call. The PSR’s are taught to take

orders only in a certain manner. Now this is done for 2

Increase Sales/call.

Avoid any sort of damages as much as possible.

Since Pepsi is in the business of beverages, there needs to be attention given to spoilage

.Almost all the products under the

related to Slice brand has only 3 months. To avoid this they follow the FIFO method of

arranging the beverages.

Market Channels

THE DISTRIBUTION PROCESS

e DIFFERENT CHANNELS OF PEPSICO

Figure 4: Different Channels of PepsiCo

8 STEPS OF A SALES CALL


orders only in a certain manner. Now this is done for 2 reasons:

Avoid any sort of damages as much as possible.


.Almost all the products under the Pepsi portfolio has a life of 6 months where in anyth


Market Channels

Traditional Trade

Convenience

Grocery

Eating & Dining

Oganised Trade

On-

Modern Trade

27 | P a g e

THE DISTRIBUTION PROCESS



months where in anything


Convenience

Grocery

Eating & Dining

-Premise

Modern Trade

FIFO method of merchandising would mean last week’s stocks would be replaced from the

store room to the warm display and the following week

from the warm display into the cooler.

1) PREPERATION

This is when the PSR reaches the DB point. They are required to know the pending credit

bills. There is usually a Gate meeting wherein the CE addresses all his PSR’s for

targets and shops that require attention.

2) GREET THE CUSTOMER

The whole business model only works well if the relationship is maintained well throughout.

PSR’s are asked to always greet the customer by their name and talk to them regarding the

local happenings and build a good rapport with the shopkeeper.

3) STORE CHECKING

Store checking is very important while determining an order. The shop might have its

storeroom most of the times behind the outlet, hence the PSR needs to go to the storeroom

behind the shop in order to get an idea of the amount of stock the shop keeper has and

accordingly take orders.

4) MERCHANDISING

Merchandising is done on the cooler. During merchandising the Planogram is followed.

Merchandising is the process where coolers a

arranged and stacked in the cooler according to the Planogram. Now the second process is

replacing the warm display with stock from the store room.

This arrangement of the cooler is called the Planogram which

serves 3 purposes


store room to the warm display and the following week that same stock would be replaced

from the warm display into the cooler.


bills. There is usually a Gate meeting wherein the CE addresses all his PSR’s for

targets and shops that require attention.

GREET THE CUSTOMER



cal happenings and build a good rapport with the shopkeeper.

STORE CHECKING




MERCHANDISING


Merchandising is the process where coolers are charged. The stock from the warm display is


replacing the warm display with stock from the store room.

This arrangement of the cooler is called the Planogram which is given by the company. This

28 | P a g e


that same stock would be replaced


bills. There is usually a Gate meeting wherein the CE addresses all his PSR’s for the day’s







re charged. The stock from the warm display is


is given by the company. This

It is easier to locate the flavour of your choice.

Since it is easier to locate your flavour, there is quick opening and closing of the

cooler, thereby preventing any loss of cooling.

Every product line gets

Figure 5: PLANOGRAM OF PEPSICO

5) DETERMINATION OF THE ORDER

Next step would be to check the amount of stock kept in the warm display and accordingly

ask the shop keepers for more

to make sure he gets the right orders. This step is called order determination. Here the PSR

would have to make sure the particular flavour asked for is in stock with the distributor.

6) PRESENTATION OF THE ORDER

The next step involves explaining the variable schemes available and cross checking with the

shop keeper .The orders that are taken cannot be mistaken and hence it is always cross

checked thereby preventing any chance of confusion.

It is easier to locate the flavour of your choice.


cooler, thereby preventing any loss of cooling.

Every product line gets its own shelf space, thereby not encroaching into other spaces.

Figure 5: PLANOGRAM OF PEPSICO

DETERMINATION OF THE ORDER


ask the shop keepers for more orders. The PSR here would have to check what is in the store



TION OF THE ORDER



checked thereby preventing any chance of confusion.

29 | P a g e


its own shelf space, thereby not encroaching into other spaces.


orders. The PSR here would have to check what is in the store





7) KERBESIDE DEBRIEF

This stands for anything that needs to be done extra in order to satisfy the customer .It is

basically an assessment of what went wrong and how it could have been avoided.

8) ADMINISTRATION

In this step the PSR returns back to the DB, wherein he is required to print the bills for the

next day .The PSR’s once back, call up outlet owners who they missed on their routes and

collect orders on the phone.

4.3. THE MARKET MODEL

Primary Level

So, here lies the major difference between our business (beverages) and the other FMCG

business that cooling effect is very import

Cooler comes in between Retailer and the Consumer whereas in other FMCG business it

directly gets transferred from retailers to customers.

Plant

(Sangareddy)

Distributor Point (DC)

IDE DEBRIEF



ADMINISTRATION



THE MARKET MODEL

Secondary Level Tertiary Level

Figure 6: Market Model


business that cooling effect is very important in beverages and hence, in the Value chain


directly gets transferred from retailers to customers.

Distributor Point (DC)

Retailer Cooler

30 | P a g e





Secondary Level Tertiary Level


ant in beverages and hence, in the Value chain


Cooler Consumer

5. TRADITIONAL TRADE

5.1. MODUS OPERANDI

It means the “Method of Operation”

Pepsi’s distribution systems is their approach. A PSR visits a shop one day and the very next

day the supply is delivered by the delivery team. Now this creates an everyday contact with

the retailer. Every day the retailers are in touch with either the PSR’s or the delivery people,

thereby addressing any sort of issues like damages etc.

5.2. CLASSIFICATION OF ROUTES

Every PSR follows a Route and there are sub

Now since it’s a 6 day week, every PSR visits an outlet twice in a week.

5.3. CE- CUSTOMER EXECUTIVE

CE Reports to the ASM and is in charge of the PSR’s. He is the person in charge of one

Distribution point. He is required to visit the market and accompany eve

routes. The PSR’s gives all the information to the CE first hand. If it’s an issue that can’t be

handled by the CE, then he/she can ask for assistance from the TDM or ASM.

5.4. PSR- PRE SALES REPRESENTATIVE

PSR’s reports directly to their

company as they are the ones who sell the products, and are responsible for acquiring new

customers, and in retaining the old ones. Their job requires them to be Street

many orders as possible. Their work includes informing the retailers about the promotions

and any new schemes launched if any. They are also required to push for the sale of any new

product launched in the market and make sure that the retailers are following the com

guidelines regarding the launch and the maintenance of Coolers. They basically deal with:

TRADITIONAL TRADE

MODUS OPERANDI

It means the “Method of Operation” followed. PepsiCo follow Pre Sales Method. The USP of



ery day the retailers are in touch with either the PSR’s or the delivery people,

thereby addressing any sort of issues like damages etc.

CLASSIFICATION OF ROUTES

Every PSR follows a Route and there are sub-routes in every person’s route i.e. A, B, C.

w since it’s a 6 day week, every PSR visits an outlet twice in a week.

CUSTOMER EXECUTIVE


Distribution point. He is required to visit the market and accompany eve



PRE SALES REPRESENTATIVE

directly to their respective CE’s. They are the most important asset for the


customers, and in retaining the old ones. Their job requires them to be Street

as possible. Their work includes informing the retailers about the promotions


product launched in the market and make sure that the retailers are following the com


31 | P a g e

followed. PepsiCo follow Pre Sales Method. The USP of



ery day the retailers are in touch with either the PSR’s or the delivery people,

routes in every person’s route i.e. A, B, C.


Distribution point. He is required to visit the market and accompany every PSR’s on their



respective CE’s. They are the most important asset for the


customers, and in retaining the old ones. Their job requires them to be Street-smart and get as

as possible. Their work includes informing the retailers about the promotions


product launched in the market and make sure that the retailers are following the company


Order Booking

Charging i.e. placing stock into cooler

Figure 7:

PSR I worked with having SAMNA on his hand

5.5. SAMNA

The FMCG industry generally faces a

SAMNA (Sales Automation Management for the New Age) is used to track consignments.

With the help of SAMNA, PSR’s could find out stock available with the distributor, helps to

check various schemes available.

Order Booking

Charging i.e. placing stock into cooler

Figure 7:

PSR I worked with having SAMNA on his hand

The FMCG industry generally faces a hurdle in the sales and distribution side of the business.



s available.

32 | P a g e

hurdle in the sales and distribution side of the business.



5.6. ANALYSIS OF THE ENTIRE BEVERAGE PRODUCT RANGE, PRICING

STRUCTURE, AND THE MARGIN STRUCTURE

The beverage in PepsiCo is divided into three categories:

GRB

PET

Aquafina

The study of is done under Raj Mohan Enterprises which is one of the stable depot of

beverages in Hyderabad.

GRB (Glass Returnable Bottle)

SKU's MRP

200ml(GRB)

PEPSI 10

MIRINDA 10

7UP 10

MOUNTAIN DEW 9

SLICE 10

250ml(GRB)

SLICE 16

300ml(GRB)

PEPSI 16

MIRINDA 16

7UP 16

ANALYSIS OF THE ENTIRE BEVERAGE PRODUCT RANGE, PRICING

STRUCTURE, AND THE MARGIN STRUCTURE

The beverage in PepsiCo is divided into three categories:

GRB – Glass Refillable Bottle

PET – Polyethylene Terephthalate

Aquafina

is done under Raj Mohan Enterprises which is one of the stable depot of

GRB (Glass Returnable Bottle)

Case Capacity Trade Price Reatilers Profit

24 214 26

24 214 26

24 214 26

24 193 23

24 214 26

24 349 35

24 346 38

24 346 38

24 346 38

33 | P a g e

ANALYSIS OF THE ENTIRE BEVERAGE PRODUCT RANGE, PRICING

is done under Raj Mohan Enterprises which is one of the stable depot of

Reatilers Profit Reatilers Margin (%)

10.83

10.83

10.83

10.65

10.83

9.11

9.90

9.90

9.90

PET(Polyethylene Terephtholate)

SKU's MRP

250ml(PET)

PEPSI 15

7UP 15

500ml(PET)

PEPSI 25

MIRINDA 25

7UP 25

MOUNTAIN DEW 25

600ml(PET)

PEPSI 36

MIRINDA 36

7UP 36

MOUNTAIN DEW 36

SLICE 35

LEHAR SODA 12

1L(PET)

PEPSI 40

MIRINDA 40

7UP 40

LEHAR SODA 22

1.2L(PET)

SLICE 62

2.25L(PET)

PEPSI 80

MIRINDA 80

7UP 80

SKU's MRP

250ml(CANS)

PEPSI 25

DIET PEPSI 25

MIRINDA 25

7UP 25

MOUNTAIN DEW 25

NIMBOOZ

350ml(PET) 20

PET(Polyethylene Terephtholate)


24 312 48

24 312 48

24 560 40

24 560 40

24 560 40

24 560 40

24 817 47

24 817 47

24 817 47

24 817 47

24 773 67

24 216 72

12 442 38

12 442 38

12 442 38

12 234 30

12 683 61

9 670 50

9 670 50

9 670 50


24 555 45

24 555 45

24 555 45

24 555 45

24 555 45

24 440 40

34 | P a g e


48 13.33

48 13.33

40 6.67

40 6.67

40 6.67

40 6.67

47 5.44

47 5.44

47 5.44

47 5.44

67 7.98

72 25.00

38 7.92

38 7.92

38 7.92

30 11.36

61 8.20

50 6.94

50 6.94

50 6.94


7.50

7.50

7.50

7.50

7.50

8.33

AQUAFINA

SKU's MRP

AQUAFINA

500ml 10

1L 20

2L 32

5.7. ANALYSIS OF THE ENTIRE FOOD PRODUCT RANGE, PRICING

STRUCTURE AND THE MARGIN STRUCTURE

The study of food is done under Gayathri Enterprises which is one of the stable depot of food

in Hyderabad.

Here everyday PSR’s cover different routes in a week, and hence they visit one store once a

week which makes 4 visits in a month.

The entire product range of food is as follow:

Lays

Chile Lemon

French Salt and Cracked Pepper

Classic Salted

American Style Cream & Onion

Magic Masala

Spanish Tomato Tango

West Indies Hot n Sweet Chill


24 204 36

12 215 25

9 256 32

ANALYSIS OF THE ENTIRE FOOD PRODUCT RANGE, PRICING

STRUCTURE AND THE MARGIN STRUCTURE


everyday PSR’s cover different routes in a week, and hence they visit one store once a

week which makes 4 visits in a month.

The entire product range of food is as follow:

Lays Baked

Original Salted

French Salt and Cracked Pepper Sunkissed Tomato

Cream Herb & Onion

American Style Cream & Onion Lay's Flat Thi Sweet Chill

Lay's Flat Swiss Grilled Cheese

West Indies Hot n Sweet Chill

35 | P a g e


15.00

10.42

11.11

ANALYSIS OF THE ENTIRE FOOD PRODUCT RANGE, PRICING


everyday PSR’s cover different routes in a week, and hence they visit one store once a

Kurkure

Papad O Nutz Jeera Hing

Papad O Nutz Chilli Masala

Masala Munch

Green Chutney Rajasthani Style

Naughty Tomato

Hyderabad Hungama

Chilli Chatka

Uncle Chipps

Krunchy Tangles Mango Pickle

Krazy Twists Chatpata Masala

Plain Salted

Spicy Treat

Bombaat Chilli Masala

Jhakaas Tomato Twist

Quaker Original Flavour Quaker Flavoured Oats

200g Refill Classic Elaichi & Raisins

400g Refill Mild Pepper & Dal

500g Jar Homestyle Masala with Vegetables

600g Refill Strawberry Flavour with Apple

1kg Refill Kesar flavour with Kishmish

1kg Jar Lemony Veggie Mix with Capsicum

1.5Kg Refill

Kurkure-Puffed Range Kurkure Solid Masti

KK ZigZag Mad Masala Masala

KK ZigZag Yummy Cheese Teekha Meetha Khatta

KK Corn Cups Yummy Cheese

Green Chutney Rajasthani StyleKK Monster Smileez

KK Puffcorn Yummy Cheese

KK Puffcorn Mad Masala

Monster Paws Mad Masala

Monster Paws Funky Tomato

Kurkure Crunchy Rings

Cheetos Lehar

Krunchy Tangles Mango Pickle Cheesy Krunchy Aloo Bhujia

Krazy Twists Chatpata Masala Cheez Puffs Shahi Mix

Cheese Balls Chatpata Mix

Masala Balls Moong Dal

Tangy Loops Bikaneri Bhujia

Karare Peanuts

Navratan Mix

Khatta Meetha

Nut Cracker

Quaker Flavoured Oats

Classic Elaichi & Raisins

Mild Pepper & Dal

Homestyle Masala with Vegetables

Strawberry Flavour with Apple

Kesar flavour with Kishmish

Lemony Veggie Mix with Capsicum

36 | P a g e

Kurkure Solid Masti

Teekha Meetha Khatta

Aloo Bhujia

Chatpata Mix

Moong Dal

Bikaneri Bhujia

Karare Peanuts

Navratan Mix

Khatta Meetha

Nut Cracker

The details on the pricing, capacity and the margin structure is as follow:

SKU's Marked Price

Lays 5

10

15

20

35

60

Kurkure 5

10

15

20

Uncle Chipps 5

10

20

Cheetos 5

10

Quaker Oats 15

41

62

68

158

198

The details on the pricing, capacity and the margin structure is as follow:

Marked Price Trade Price Capacity Retailers Profit

4.55 224 0.45

9.09 120 0.91

13.64 80 1.36

18.18 64 1.82

31.82 48 3.18

54.55 28 5.45

4.55 225 0.45

9.09 128 0.91

13.64 80 1.36

18.18 60 1.82

4.17 164 0.83

9.09 120 0.91

18.18 80 1.82

4.17 164 0.83

9.09 120 0.91

13.64 1.36

37.27 3.73

56.36 5.64

61.82 6.18

143.64 14.36

171.43 26.57

37 | P a g e

Retailers Profit Retailers Margin

9.0

9.1

9.1

9.1

9.1

9.1

9.0

9.1

9.1

9.1

16.6

9.1

9.1

16.6

9.1

9.1

9.1

9.1

9.1

9.1

13.4

6. ORGANISED TRADE

6.1. ON PREMISE

These include outlets like KFC’s, Pizza Hut where in the product is consumed on premise

and there is no taking home generally they enjoy Monopoly in On

like 2l and 1.5l will be absent. Here is where BIBS (Bag in Box/Concentrated

the beverage) comes into play. Here the BIBS is mixed with water and CO2 to create

what’s called the Fountain Pepsi in PMX machines(Post mixture machine).

The different categories are:

Figure 8:

Quick Serving Restaurants

(QSR)

Entertainment

Hotels

Fine Dine and Restaurant

Travel and Transport

Institutions

ORGANISED TRADE


and there is no taking home generally they enjoy Monopoly in On-Premise. Hence SKU’s

like 2l and 1.5l will be absent. Here is where BIBS (Bag in Box/Concentrated



Figure 8: Categories of On-Premise

•Pizza Hut

•KFC

•Big Cinemas

•PVR

•TAJ

•Green Park

•Urban Asia

•Cuba Libre

•Airport

•Railways

•Google

•Microsoft

38 | P a g e


Premise. Hence SKU’s

like 2l and 1.5l will be absent. Here is where BIBS (Bag in Box/Concentrated syrup of



6.2. MODERN TRADE

Modern trade is working with big hyper markets such as the Big Bazaar, D Mart etc. In these

retail setups, wherein footfall is going to be very high, the game takes a whole new

dimension. If the rule of the game in TT was to create a glitch

wherein the company is in constant touch with the shop keepers, the game plan in modern

trade is to ‘get as much attention as possible’ and coupled with this scheme like BOGO.

Modern trade focuses on festive seasons, during these se

Modern trade focuses on putting up displays during these festive seasons by giving an offer

or two, Hence not only creating awareness but also getting sales.30% of the consumption in

urban areas come from Modern Trade. It

everyone’s attention. In modern trade most of the outlets are high sales outlets compared to

traditional trade. The different categories in modern trade are:

Figure 9: Categories of Modern Trade

FIVE STEPS CALL PROCESS OF MODERN TRADE

Win Cold

Win Display

Win Shelf

Win POSM (Point of Sale Material)

Win PO1(Power of One i.e. both snacks and beverages)

• Big Bazaar

• SpencersNational Modern

Trade

• RatnadeepRegional Modern

Trade

Stand Alone Modern Trade(SAMT)



dimension. If the rule of the game in TT was to create a glitch-free distribution system



Modern trade focuses on festive seasons, during these seasons people purchase a lot more.



urban areas come from Modern Trade. It is about creating awareness in the outlet and get


traditional trade. The different categories in modern trade are:

Figure 9: Categories of Modern Trade

STEPS CALL PROCESS OF MODERN TRADE

Win Display

Win POSM (Point of Sale Material)


Big Bazaar

Spencers

Ratnadeep

39 | P a g e



ree distribution system



asons people purchase a lot more.



is about creating awareness in the outlet and get



7. THE MAJOR DIFFFERENCES BETWEEN DIFFERENT CHANNELS OF TRADE

TRA

DIT

ION

AL

TRA

DE

• It involves planned buying

• Consumers might touch and feel the good or might not

• The goods are sold to consumers at Marked Price

• It is managed on personal relation

• The onus of service is on sales person

•The consumer might get credit purchase

• No membership facilities

• The product is sold in original form

• Company give very low credit period to TT

• Promotions are done seasonally

• Just the visibility is ensured

• Sales are high during the season/festive

MAJOR DIFFFERENCES BETWEEN DIFFERENT CHANNELS OF TRADE

MO

DER

N T

RA

DE

•Impulse purchase

•consumers can touch and feel

•Sold at price lower than MP

•No personal relation exist

• Self service by the consumers

•Credit purchase is not entertained

•Membership facility

•In original form

•Credit duration is longer

•Promotions are done monthly or weekly basis

•Innovative merchandising is ensured

• Sales are high throughout

ON

-PR

EMIS

E

• Planned purchase

• cannot touch and feel

• sold at a premium price

• personal relation might exist

• served by the house keeping person

• No credit Purchase

• The original form of the product might get changed

•Credit duration is longer compared to TT

•Promotions are rarely done

• Merchandising is not importnat

• Seasonality does not effect the sale

40 | P a g e

MAJOR DIFFFERENCES BETWEEN DIFFERENT CHANNELS

Planned purchase

cannot touch and

sold at a premium price

personal relation might exist

served by the house keeping person

No credit Purchase

The original form of the product might get changed

Credit duration is longer compared

Promotions are rarely done

Merchandising is not importnat

Seasonality does not effect the sale

8. PROJECT SPECIFIC ANALYSIS

8.1. PO1

The Power of One begins with the unique ability to connect with consumers.

the first and the only unit across world chosen for PO1 project.

According to an internal study of the company, about 60 percent of the time people consume

a salty snack along with a refreshment beverage where as only 30 percent of the time it is

when people buy both of it together. So PO1 is an initiative to leverage the existing gap of 30

percent which we can capitalize on the leading positions of our iconic brands in

categories to drive the purchase of our snacks and beverages together. As we grow globally,

this idea is more powerful than ever.

This project of Power of One in Hyderabad has been allocated a total fund of 800 Cr, the

breakup of which is 450 Cr for

expenses.

Andhra Pradesh and Telangana is the state with largest category market for beverage, where

as PepsiCo has the lowest beverage share in the state compared to other states in the country.

Talking about the food, the state enjoys the strongest food market across country. And these

are the sole reasons why Hyderabad has been chosen for the Power of One Project.

There are thousand plus employees working towards the power of one initiative in

Hyderabad. A total of 60,000 and plus beverage and food retailers individually are under the

purview of this project amongst which 30% of the outlet are the common outlets know as

PO1 outlets having both beverage and food and there by affecting a total of 10,0

channel partners.

Considering all, there are two benefit synergies for selecting this area for the Power of One

project i.e.

The beverages rides on food in the Urban

The foods rides on Beverage in Rural

And there by providing a platform to


The Power of One begins with the unique ability to connect with consumers.

the first and the only unit across world chosen for PO1 project.


ck along with a refreshment beverage where as only 30 percent of the time it is


percent which we can capitalize on the leading positions of our iconic brands in


this idea is more powerful than ever.


breakup of which is 450 Cr for beverage, 250 Cr for food and remaining 100 Cr for other



king about the food, the state enjoys the strongest food market across country. And these



rabad. A total of 60,000 and plus beverage and food retailers individually are under the


PO1 outlets having both beverage and food and there by affecting a total of 10,0

there are two benefit synergies for selecting this area for the Power of One

The beverages rides on food in the Urban

The foods rides on Beverage in Rural

And there by providing a platform to leverage both the Urban and the rural effectively

41 | P a g e


The Power of One begins with the unique ability to connect with consumers. Hyderabad is


ck along with a refreshment beverage where as only 30 percent of the time it is


percent which we can capitalize on the leading positions of our iconic brands in both



beverage, 250 Cr for food and remaining 100 Cr for other



king about the food, the state enjoys the strongest food market across country. And these



rabad. A total of 60,000 and plus beverage and food retailers individually are under the


PO1 outlets having both beverage and food and there by affecting a total of 10,000 and plus

there are two benefit synergies for selecting this area for the Power of One

ural effectively.

8.2. BACKGROUND OF THE PROJECT

The Project comprises of designing combos

to understand its impact on the trade, shopper and the consumer. The 30 outle

the basis of Sale amongst which there

Coke and few Pepsi Exclusive outlets.

CROSS SELLING

The combos are integration of beverage and Snack which is very much like

The Cross selling is the activity or practice of selling an additional product to an existing

customer. In cross-selling complimentary products

It is a tactics that allow grabbing a larger share of wallet (SOW) of the customers.

This activity of Cross selling

behaviour and has traditionally been used to increase sales and consumers awareness about

the company’s brand and product. It is a very common marketing strategy adopted

companies, where two or more products are sold together.

8.3. CONSIDERATIONS FOR SELECTING THE SAMPLE OUTLETS

In the initial days the master database was studied and the outlets were prioritized on the

basis of their contribution. The Outlets

Thereby the prioritized outlets were given a visit in order to develop the relation and the deal

in order to run the combo which required a great support from the retailers end.

The basic considerations for selecting the outlet for Perfect Combo were:

Outlet with

Touch Points

BACKGROUND OF THE PROJECT

The Project comprises of designing combos, and executing them in 30 bakery outlets in order

to understand its impact on the trade, shopper and the consumer. The 30 outle

e basis of Sale amongst which there are few mixed account that is having both Peps

Pepsi Exclusive outlets.

The combos are integration of beverage and Snack which is very much like

is the activity or practice of selling an additional product to an existing

complimentary products are sold to a customer.

grabbing a larger share of wallet (SOW) of the customers.

This activity of Cross selling the product aims at influencing consumer’s attitude and

r and has traditionally been used to increase sales and consumers awareness about

the company’s brand and product. It is a very common marketing strategy adopted

companies, where two or more products are sold together.



basis of their contribution. The Outlets with maximum contribution were given preference.



selecting the outlet for Perfect Combo were:

PO1 Outlet

Location Outlet Type

42 | P a g e

and executing them in 30 bakery outlets in order

to understand its impact on the trade, shopper and the consumer. The 30 outlets are chosen on

mixed account that is having both Pepsi and

The combos are integration of beverage and Snack which is very much like Cross Selling.

is the activity or practice of selling an additional product to an existing

are sold to a customer.

grabbing a larger share of wallet (SOW) of the customers.

s at influencing consumer’s attitude and

r and has traditionally been used to increase sales and consumers awareness about

the company’s brand and product. It is a very common marketing strategy adopted by the



with maximum contribution were given preference.



Outlet Type

Outlets with touch points

Touch points are our brand’s points of customer contact.

potential customer or customer comes in contact with the brand.

The outlets with touch points

decision.

PO1 outlet

By PO1 outlet we mean an outlet having PepsiCo SKU’s of both Bev and Snacks in order to

ensure the execution of combo successfully.

Outlet type

By outlet type we mean whether

in both kinds on equal proportion.

Location

An outlet in a good location was given the priority. It was done to ensure that the entrants

become the prospective consumers of the combo repeatedly.

Many prospective bakery outlets fall under UBC account which has tie up with Coke

for CBD

In Nearly 7 outlets the food supply needed to be started.

The Credit in the Food was stopped by the distributor which was one of the major

fight in many outlets

The Market instability was one of the major cons

CHALLENGES

Outlets with touch points

Touch points are our brand’s points of customer contact. A touch point is any time a

potential customer or customer comes in contact with the brand.

The outlets with touch points were essential in order to influence the consumers buying


ensure the execution of combo successfully.

By outlet type we mean whether an outlet is Mixed or PI as the combo needed to be executed

in both kinds on equal proportion.


become the prospective consumers of the combo repeatedly.


In Nearly 7 outlets the food supply needed to be started.


The Market instability was one of the major constraint.

43 | P a g e

point is any time a

were essential in order to influence the consumers buying


an outlet is Mixed or PI as the combo needed to be executed




Below is the list of 30 bakery outlets selected for the execution of Combos. It covers 6

Distributors and 7 Beverage Customer Executives. All the outlets have an Unique

Identification Number which he

Figure 10: Details of the 30 Sample Bakery Outlet



Identification Number which helps us to track the Sales of that particular outlet.

: Details of the 30 Sample Bakery Outlet

44 | P a g e



lps us to track the Sales of that particular outlet.

: Details of the 30 Sample Bakery Outlet

8.4. SURVEY TO UNDERSTAND THE CHOICE OF COMBO PACKS ON

CONSUMER BUYING DECISION

MAIN OBJECTIVE OF THE SURVEY

To know the consumers preference

order to design the combo.

To study the awareness of the consumers regarding the different brands of PepsiCo

To know of how many people are aware that Frito

To study whether the Combo promotion in any particular outlet will influence the

buying decision of a prospective customer.

ANALYSIS OF THE SURVEY

Our prime focus is to understand how a consumer is influence by cross selling offers and

how this influence the buyi

http://goo.gl/forms/3ewqi1hyWa

During the whole research study, approach was taken to indulge the sample

to fill a questionnaire. The total

consumers.

Out of the Sample size following are the demographic information.

55%45%

GENDER RATIO


CONSUMER BUYING DECISION

MAIN OBJECTIVE OF THE SURVEY

To know the consumers preference towards a particular brand of CSD and Snack in

order to design the combo.

To study the awareness of the consumers regarding the different brands of PepsiCo

To know of how many people are aware that Frito-Lay comes from PepsiCo stable.

the Combo promotion in any particular outlet will influence the

ision of a prospective customer.

ANALYSIS OF THE SURVEY


how this influence the buying pattern and perception of the consumer.

http://goo.gl/forms/3ewqi1hyWa is the link of the Google form.

During the whole research study, approach was taken to indulge the sample

to fill a questionnaire. The total sample size was 105 number of different age group

Out of the Sample size following are the demographic information.

GENDER RATIO

Male

Female

6%

71%

18%

5%

AGE GROUP

45 | P a g e


towards a particular brand of CSD and Snack in

To study the awareness of the consumers regarding the different brands of PepsiCo.

Lay comes from PepsiCo stable.

the Combo promotion in any particular outlet will influence the


ng pattern and perception of the consumer.

During the whole research study, approach was taken to indulge the sample population

different age group

AGE GROUP

Below 18

18 - 25

26 - 35

Above 35

http://goo.gl/forms/3ewqi1hyWa

More or less there is an equal distribution of Male and Female in the sample po

The sample mostly consists of student and employed people of 18

As PepsiCo doesn’t market its product to kids they were given less emphasis and the youth

were given importance during the analysis.

RESULTS

The people were asked of which brand of Cold drink they like amongst Pepsi and Coke. 57%

of the sample people said that they prefer Coke over Pepsi and nearly 43% of the sample said

that they prefer Pepsi over Coke.

The Questionnaire was designed to get a better understanding on the consumers brand

preference of Pepsi’s portfolio so as to design Perfect combo.

Pepsi Mirinda

35%

Which brand of PepsiCo Cold drink you prefer

More or less there is an equal distribution of Male and Female in the sample po

The sample mostly consists of student and employed people of 18 – 35 age group.


were given importance during the analysis.

d of which brand of Cold drink they like amongst Pepsi and Coke. 57%


that they prefer Pepsi over Coke.


preference of Pepsi’s portfolio so as to design Perfect combo.

8%

25%

61%

6%

OCCUPATION

Business

Employed

Student

Housewife

Mirinda 7Up Mountain Dew

Slice

14%8%

33%

10%

Which brand of PepsiCo Cold drink you prefer the most

46 | P a g e

More or less there is an equal distribution of Male and Female in the sample population.

35 age group.


d of which brand of Cold drink they like amongst Pepsi and Coke. 57%



Business

Employed

Student

Housewife

Which brand of PepsiCo Cold drink you prefer

Across sample the population shows more liking towards Pepsi the flagship brand and

Mountain Dew.

When asked about the SKU they prefer buying, across sample nearly 33% of the population

voted for 500ml or 600ml PET bottles which has got the maximum vote amongst all.

In order to design a perfect Combo the preference of Snacks along with the Cold drink were

being asked.

Around 63% of the people across sample voted for Lays as the best combination for Perfect

Combo.

2.25L PET

1L PET

500ml or 600ml PET

250ml Cans

200ml Glass

What size of packaging do you generally

LaysChipps

63%

What do you prefer having with the cold


asked about the SKU they prefer buying, across sample nearly 33% of the population




6%

8%

22%

What size of packaging do you generally prefer

Uncle Chipps

Kurkure Kurkure Puffed Corn

Cheetos

14% 18%5% 1%

What do you prefer having with the cold drink you have chosen

47 | P a g e


asked about the SKU they prefer buying, across sample nearly 33% of the population




33%

31%

What size of packaging do you generally

What do you prefer having with the cold

Across the sample, more than 50% of the population are in common consensus regarding the

Rs 10 SKU of Snack as the best combination with the Cold drink.

The consumer awareness about the company’s brand and product

the total population of the sample were not aware about the fact that Frito Lay comes from

the PepsiCo stable.

Rs 5

4%

Which pack of the food preferred above

Did you know Pepsi and Frito Puffed Corn, Uncle Chipps, Cheetos) come from the


10 SKU of Snack as the best combination with the Cold drink.

awareness about the company’s brand and product were tested. Nearly 53% of


Rs 10 Rs 15 Rs 20 Rs 35

53%

7%

33%

3%

Which pack of the food preferred above you generally buy

39%61%

Did you know Pepsi and Frito - Lay (Lays, Kurkure, KK Puffed Corn, Uncle Chipps, Cheetos) come from the

same Company ' PepsiCo '

48 | P a g e


were tested. Nearly 53% of


Which pack of the food preferred above

Lay (Lays, Kurkure, KK Puffed Corn, Uncle Chipps, Cheetos) come from the

Yes

No

Across the sample the combo deal has been appreciated by more than 50% of the total

population. It seems the perfect combo can generate an aspiration amongst the prospective

consumers.

FINDINGS

The best combination for the Perfect Combo would

with a pack of Snack of Rs 10.

The most demanded brand in the perfect combo would be Pepsi, Mountain Dew along

with Lays.

The Company might even consider 250ml Cans for the Perfect Combo as it is highly

preferred amongst the co

Though GRB is demanded, it should not be considered for Combo because the

consumers who prefer GRB’s are generally price sensitive and may not afford an

extra amount for combo.

To make sure the survey is an

we will “pilot test” the outcomes in the 30 chosen bakery outlets.

Will the above kind of offer in the outlet induce you to make an unplanned purchase



The best combination for the Perfect Combo would be 500ml or 600ml PET along




preferred amongst the consumers after 500ml PET




survey is an appropriate length and that the outcomes are clear

we will “pilot test” the outcomes in the 30 chosen bakery outlets.

58%42%


49 | P a g e



be 500ml or 600ml PET along





are clear and certain,


Yes

No

8.5. DESIGNING OF THE PERFECT COMBO

During the designing of the combos following perspectives were taken care of in order to

develop a right and an appropriate combo for the outlets.

Win-Win situation:

The combo should be designed in such that it should benefit the customer to the

utmost and should also favor the retailer and the Company and thereby making a win

-win situation for all the part

Opportunity:

Combos should offer new channel opportunities and exposure to new

customers; as it include products from different categories

Volume:

Combos typically should increase

bundled together. And as the survey just 500ml or 600ml PET along with pack of Rs

10 Snacks will be a best combination to increase the sales volume.

Margins:

Combo reduces the margin as it usually includes the discount

Risk:

If not executed in a proper way, combo

lower contribution margins and potential channel conflict.

Round Price:

Research has shown that consumers see products that use round prices as higher

quality. Another reason to use round prices goes back to the “lazy subtractor”

argument as it consumes less time of both retailer and the consumer.

A consumer who has come to bu

order to obtain the Round Price purchase.

DESIGNING OF THE PERFECT COMBO


nd an appropriate combo for the outlets.



win situation for all the parties involved.

offer new channel opportunities and exposure to new

include products from different categories.

should increase unit sales volume as there are two products



Combo reduces the margin as it usually includes the discounting.

ecuted in a proper way, combo may eat up more profitable sales, resulting in

lower contribution margins and potential channel conflict.




A consumer who has come to buy Cold drink lands up buying a pack of Snack in

order to obtain the Round Price purchase.

50 | P a g e




offer new channel opportunities and exposure to new potential

volume as there are two products



may eat up more profitable sales, resulting in




y Cold drink lands up buying a pack of Snack in

Taking above parameters into consideration the following two Combos were designed for the

30 sample Bakery Outlets.

The above combo designed is of 500ml PET bottl

the SKU contributes to the maximum movement compared to the other SKU. In this

particular design the consumer saves Rs 5 on grabbing the combo.

The above combo designed is of 1L PET along with a pack of Snack

the Combo the consumer saves Rs 5.

Rs 25500ML/600ML

(CSD)

Rs 10

(LAYS/ KK)

Rs.40

1L

(CSD)

Rs. 15

(LAYS/KK)


The above combo designed is of 500ml PET bottle along with a pack of Snack of Rs 10. Both


particular design the consumer saves Rs 5 on grabbing the combo.

The above combo designed is of 1L PET along with a pack of Snack of Rs 15. On grabbing

the Combo the consumer saves Rs 5.

Rs 30

SAVE

Rs.5

Rs.50

SAVE Rs.5

51 | P a g e


e along with a pack of Snack of Rs 10. Both


of Rs 15. On grabbing

8.6. DESIGNING OF THE COLLATERALS

Advertising is a form of communication whose purpose is to inform potential customer about

the product. Many advertisements are also designed to generate

through some promotion or offer.

Central goal of advertising is to convince the consumer and persuade them to purchase. The

ultimate objective of advertising is:

To some how attract consumer to the market offering of the Company.

Generating positive attitude.

Reinforce positive association and ultimately generate sales.

The A.I.D.A Model

The most often cited model was developed by Lavidge

the process by which advertising works for decades. The consumers go through a variety of

stages in responding to advertising and other persuasive marketing message. Advertising is

an investment in a long term process

stages beginning with product unawareness and ending with an actual purchase.

If you've ever been motivated to take action due to an advertisement, you've likely been

influenced by a technique called A.I.D

action."

8.6. DESIGNING OF THE COLLATERALS


the product. Many advertisements are also designed to generate increased consumption

through some promotion or offer.


ultimate objective of advertising is:


rating positive attitude.

Reinforce positive association and ultimately generate sales.

The most often cited model was developed by Lavidge and Steiner, and has been regarded as



an investment in a long term process that move consumers over time through a series of



influenced by a technique called A.I.D.A, which stands for "attention, interest, desire,

ATTENTION

INTEREST

DESIRE

ACTION

52 | P a g e


increased consumption



and Steiner, and has been regarded as



that move consumers over time through a series of



.A, which stands for "attention, interest, desire,

ATTENTION

The attention portion of the marketing message occurs at the beginning and is designed to

give the prospects a reason to take notice.

This was ensured in all the sample outlets

designed to ensure the attention of the entrants in a particular outlet were

Live Display

3D Display

Tent Cards

Dangler

Banner

Foam Board

INTEREST Once we have gained the prospects' attention, the next step is to maintain the interest in the

product or the offering to keep the recipients engaged.

So as the POSM have Pepsi and Lays, the develop interest amongst the prospects towards the offering.

DESIRE In the desire stage, our objective is to show the prospects how our product or offering can be

beneficial for them.

“Save Rs 5/-” was the message in all the POS to develop interest

for purchase.


give the prospects a reason to take notice.

This was ensured in all the sample outlets through innovative ideas. The different POS

designed to ensure the attention of the entrants in a particular outlet were

Once we have gained the prospects' attention, the next step is to maintain the interest in the

product or the offering to keep the recipients engaged.

as the POSM have Pepsi and Lays, the two brands together for the first timedevelop interest amongst the prospects towards the offering.

In the desire stage, our objective is to show the prospects how our product or offering can be

was the message in all the POS to develop interest and desire in the

53 | P a g e


through innovative ideas. The different POS

Once we have gained the prospects' attention, the next step is to maintain the interest in the

two brands together for the first time it might

In the desire stage, our objective is to show the prospects how our product or offering can be

and desire in the prospects

ACTION Now that we have created the desire to make a purchase, the prospect is persuaded to take

immediate action.

Below is the message of the POS put on the

Below are some of the Perfect Combo Outlets:

Now that we have created the desire to make a purchase, the prospect is persuaded to take

Below is the message of the POS put on the Outlets.

Figure 11: POS message

Below are some of the Perfect Combo Outlets:

Figure 12: Outlets with Banner

54 | P a g e

Now that we have created the desire to make a purchase, the prospect is persuaded to take

Figure 13:

Figure 14:

Figure 13: Outlets with Tent Cards on Table Top

Figure 14: Outlets with Live display

55 | P a g e

8.7. EXECUTION PHASE

1st Week

Redemption at the month end

In the initial week we had

Perfect Combo Outlet.

We had made an agreement with the outlet stating that we would reimburse them the

amount by the month end

In this method of execution the response was very dull as the retailers did not want to

bear the burden. And therefore from the second week the execution method was

changed.

2nd Week

From the very next week in order to motivate the retailers we gave the

separately to the Outlet. Nearly 30% of the total order was generated as Combo for

the initial phase and further the Combo Stock was given as per Sale.

We tried maintaining a Customer Detail Form and a Manual bill in the Outlets in

order to keep a strong Vigil.

Figure 15:

8.7. EXECUTION PHASE

the month end

week we had tried maintaining a Customer Details Form in

Perfect Combo Outlet.


amount by the month end according to the combo sale done.



From the very next week in order to motivate the retailers we gave the




ep a strong Vigil.

Figure 15: Sample of Customer Detail Form and Manual Bill

56 | P a g e

Customer Details Form in all the




From the very next week in order to motivate the retailers we gave the Combo stock




Sample of Customer Detail Form and Manual Bill

Retailers can be asked to stop keeping 400 ml of Coke and we built an agreement to

supply 100% PI 500ml Combo stock.

We develop Perfect Combo Outlet where we provide 100%

cases and above every week.

Outlets can be supplied with Combo Stock separately. It can be a special net

packaging with locks so as to bundle the product safely.

8.8. SPOT TESTING

It is a test limited to a few key or sample

A test conducted on the spot to yield immediate results.

Spot testing was done in two of the outlets, both belonging to the Mixed account one being a big

outlet and the other being a small outlet in

The testing was done for 4 hrs in each of the outlet and records were maintained through tally. One of

the sample of the tally recording is as follow.

Figure 16: Sample of Tally record of Pilot Test

SUGGESTIONS


supply 100% PI 500ml Combo stock.

We develop Perfect Combo Outlet where we provide 100% Combo on an order of 5

cases and above every week.


packaging with locks so as to bundle the product safely.

limited to a few key or sample points or a relatively small percentage of random

to yield immediate results.


outlet and the other being a small outlet in order to derive the Combo Sale and draw insights on it.


the sample of the tally recording is as follow.

Figure 16: Sample of Tally record of Pilot Test

57 | P a g e


Combo on an order of 5


points or a relatively small percentage of random spots.


order to derive the Combo Sale and draw insights on it.


The results driven from the Spot testing has been attached below and further the analysis has

been done for the big outlet and the Small outlet individually.

Figure 17:


been done for the big outlet and the Small outlet individually.

Figure 17: Spot Testing in a Small Outlet

58 | P a g e


Figure 18:

gure 18: Spot testing in a Big Outlet

59 | P a g e

ANALYSIS OF THE SPOT TESTING

In a big outlet as there are many variants of fast food the movement of packed food is less.

In such outlets the PI food can be pushed to the PI bev

instance we can initially leverage the difference between the Bev and the Food that is 5% in

this case.

Where as in case of Small Outlet the sale

have very less variants of fast food.

And therefore a person willing to spend for food will be unwilling to grab the Combo as it

requires a larger share of Wallet.

ENTRANTS

Series1 100%

0%

20%

40%

60%

80%

100%

120%

ENTRANTS

Series1 100%

0%

20%

40%

60%

80%

100%

120%

ANALYSIS OF THE SPOT TESTING


In such outlets the PI food can be pushed to the PI bev customers through Combo. For


Where as in case of Small Outlet the sale of food is higher than bev unlike a big outlet as they

s of fast food.


quires a larger share of Wallet.

ENTRANTS % OF PI SNACKS % of PI Bev

100% 13%

BIG OUTLET

ENTRANTS % OF PI SNACKS % of PI Bev

48%

SMALL OUTLET

60 | P a g e


customers through Combo. For


ev unlike a big outlet as they


% of PI Bev

18%

% of PI Bev

38%

In a small outlet there are chances of winning over Coke through offering Combo. The

consumers prefer Combo as they are benefited more by a smaller share of wallet.

The testing was further done in the outlet to see the Cases where the Combo has won over the

Coke’s share.

Sales Initially

Sales after Combo Implementation

The above data was collected from the outlet and was even backed by

therefore it implies that there are cases where PI combo wins over Coke.

The Combo sale against the sale of PI 500ml is as follow

The combo sale in the big outlet during the Spot testing was 8 bottles when extrapolated fo

10 hrs should come to nearly 20 bottles.

But the daily sale of Combo in this outlet is

did not push much of the combo after the spot testing. And therefore in order to encourage

retailer to drive Combo he should be given some incentiv

36%

29%

0% 20% 40%

COMBO SALE IN BIG OUTLET


hey are benefited more by a smaller share of wallet.


Regular

72 bottles 24

Sales after Combo Implementation 72 bottles 10

TotalPI 500ml/600ml Sales

The above data was collected from the outlet and was even backed by the sales data. And

therefore it implies that there are cases where PI combo wins over Coke.

The Combo sale against the sale of PI 500ml is as follow

the big outlet during the Spot testing was 8 bottles when extrapolated fo

20 bottles.

But the daily sale of Combo in this outlet is nearly 10 bottles, which implies that the Retailers


should be given some incentive or 100 % stock on Combo.

60% 80% 100% 120%

COMBO SALE IN BIG OUTLET

Combo Sale during Spot Test

combo sale

Bought PI 500 ml

61 | P a g e


hey are benefited more by a smaller share of wallet.


Combo

48

24 38

PI 500ml/600ml SalesCoke

the sales data. And

the big outlet during the Spot testing was 8 bottles when extrapolated for

hich implies that the Retailers


e or 100 % stock on Combo.


combo sale

Bought PI 500 ml

A Small outlet does not need any

Sales.

In order to analyse if we can do a packaging and sale the Combos, we have tried analysing

the on premise and off premise consumption of combo. And as the result shows the company

might think of special net packaging as the off premise consumption is very high.

82%

32%

0 0.2 0.4 0.6

COMBO SALE IN SMALL OUTLET

On Premise Consumption

Off Premise Consumption

100%

On Premise and Off Premise Consumption

any incentive, as they drive combo in order to generate high


premise and off premise consumption of combo. And as the result shows the company


82%

0.6 0.8 1 1.2

COMBO SALE IN SMALL OUTLET


combo sale

Bought PI 500 ml

Big Outlet

On Premise Consumption 12% 11%

Off Premise Consumption 88% 89%

0%

20%

40%

60%

80%

100%


62 | P a g e

, as they drive combo in order to generate high


premise and off premise consumption of combo. And as the result shows the company



Bought PI 500 ml


8.9. SALES ANALYSIS

In nearly 70% of the outlet it lead to increase in the Sales

In 7 Outlets the beverage

We started with the food supply in nearly 8 outlets

An agreement was built in an outlet

100% Combo Stock

In nearly 70% of the outlet it lead to increase in the Sales of more than 30%

erage built was created through Combo

ood supply in nearly 8 outlets

was built in an outlet to stop 400ml Coke Supply and we give them

63 | P a g e

of more than 30%

and we give them

9. RECOMMENDATIONS AND

The combo should be designed so as to obtain a round price. It has been observed that

consumer who has come to buy Cold drink lands up buying a pack of Snack in order

to obtain the Round Price purchase.

Live Display and Tent Card were the

Pilot. And Tent Card if at all considered further should be re

tape on the bottom.


with a pack of Snack of




consumers who prefer GRB’s are generally p


Bottle tags and cooler stickers are the other suggestions that can be thought of as

POSM.

If at all company wants to push beverage sale through combo it will have to design

Rs 15/-250ml

PET

9. RECOMMENDATIONS AND SUGGESTIONS



to obtain the Round Price purchase.

Live Display and Tent Card were the most successful marketing collateral during the

Pilot. And Tent Card if at all considered further should be re-designed with a double










Rs 20/-

Snack

Rs 30/-Perfect Combo

64 | P a g e



most successful marketing collateral during the

designed with a double




rice sensitive and may not afford an



10. ANNEXURE

QUESTIONNAIRE

Understanding the choice of Combo Packs on Consumer Buying Decision

The questionnaire has been prepared to understand the consumers buying behaviour and preference towards the brand.

You are requested to kindly answer all the a brand.

DEMOGRAPHIC INFORMATION

Name

Age

Below 18

18 - 25

26 - 35

Above 35

Gender

Male

Female

Occupational Status

Student

Housewife

Employed

Business

BEVERAGE SPECIFIC INFORMATION

Which Brand of Cold drink do you like?

Which brand of Pepsi Cold drink you prefer the most

Pepsi

Mountain Dew

7Up

Mirinda

Slice


The questionnaire has been prepared to understand the consumers buying behaviour and preference

You are requested to kindly answer all the questions purely on your personal liking and preference towards

DEMOGRAPHIC INFORMATION

INFORMATION

Which Brand of Cold drink do you like?

Which brand of Pepsi Cold drink you prefer the most

Mountain Dew

65 | P a g e


The questionnaire has been prepared to understand the consumers buying behaviour and preference

questions purely on your personal liking and preference towards

How often do you consume Cold drink

Once a week

Twice a week

Once in 15 days

Once in a month


200ml Glass

250ml Cans

500ml or 600ml PET

1L PET

2.25L PET

SNACKS SPECIFIC INFORMATION


Lays

Kurkure

Kurkure Puffed Corn

Cheetos

Uncle ChippsAny Particular Flavour if preferrred

Which pack of food preferred above you generally buy

Rs 5

Rs 10

Rs 15

Rs 20

Rs 35

Did you know Pepsi and Frito Cheetos) come from the same

Yes

No

How often do you consume Cold drink

Once a week

Twice a week

Once in 15 days

Once in a month


200ml Glass

250ml Cans

500ml or 600ml PET

SNACKS SPECIFIC INFORMATION


Kurkure Puffed Corn

Uncle Chipps Any Particular Flavour if preferrred

Which pack of food preferred above you generally buy

Did you know Pepsi and Frito - Lay (Lays, Kurkure, KK Puffed Corn, Uncle Chipps, Cheetos) come from the same Company ' PepsiCo '

66 | P a g e

Lay (Lays, Kurkure, KK Puffed Corn, Uncle Chipps,

Perfect Combo Promotion


Yes

No

Perfect Combo Promotion - You Save Rs 5 on the purchase


67 | P a g e

You Save Rs 5 on the purchase


11. REFERENCES

Websites:

www.pepsico.com/annual11/modules/module6.html

www.cirkle.com/campaigns/

www.pepsiindia.co.in

www.investopedia.com/terms/c/

www.beverageindustry.in

www.learnmarketing.net/

Books:

“Principles of Marketing” by Dr. Philip Kotler

“Competitive strategies for analyzing the industry and competitor”

by Micheal E.Porter

.com/annual11/modules/module6.html

www.cirkle.com/campaigns/pepsico-power-of-one

.co.in

www.investopedia.com/terms/c/cross-sell.asp

www.beverageindustry.in

www.learnmarketing.net/AIDA.html

“Principles of Marketing” by Dr. Philip Kotler


by Micheal E.Porter

68 | P a g e


http://www.pepsico.com/annual11/modules/module6.html

http://www.cirkle.com/campaigns/pepsico-power-of-one

http://www.pepsiindia.co.in/

http://www.investopedia.com/terms/c/cross-sell.asp

http://www.beverageindustry.in/

http://www.learnmarketing.net/AIDA.html

12. GLOSSARY

POG Planogram

SKU Stock Keeping Unit

GRB Glass Refillable/Returnable bottles

CSD Carbonated Soft drinks

BSD Bottled Soft drinks

AF Aquafina

FMO Focus Month Objective

MT Modern Trade

TT Traditional Trade

OP On Premises

SAMT Standalone Modern

E&D Eat and Dine

TSB Territory Score Board

BIB Bag in Box (Concentrated Syrup)

COBO Company owned bottling operations

FOBO Franchise owned bottling Operations

YAGO Year Ago

PAGO Previous Ago

PSR Pre Sales Representatives

Planogram

Stock Keeping Unit

Glass Refillable/Returnable bottles

Carbonated Soft drinks

Bottled Soft drinks

Aquafina

Focus Month Objective

Modern Trade

Traditional Trade

On Premises

Standalone Modern trade

Eat and Dine

Territory Score Board

Bag in Box (Concentrated Syrup)

Company owned bottling operations

Franchise owned bottling Operations

Year Ago

Previous Ago

Pre Sales Representatives

69 | P a g e

final report

Documents