final report on pepsi's merchandising)

MANAGEMENT THESIS FINAL REPORT

ON

“A STUDY ON THE MERCHANDISING STRATEGIES OF PEPSI FOR ITS COLD DRINKS”

A report submitted in partial fulfillment of requirements Of

MBA PROGRAM (CLASS OF 2007-09)

SUBMITTED TO: - SUBMITTED BY:-Ms.Chanchal Sharma Umesh Tanwar(Faculty Guide) (7NBBKO30)


CONTENT

CHAPTER -1

INTRODUCTION CHAPTER- 2

OBJECTIVE OF THE STUDY

CHAPTER- 3

METHODOLOGY

CHAPTER- 4

ANALYSIS AND INTERPRETATION

CHAPTER- 5

LIMITATIONS

CHAPTER-6

CONCLUSION

ANNEXURE


ACKNOWLEDGEMENT

It is great pleasure for me to express my hearty and sincere gratitude to

my Faculty Guide, Ms. Chanchal Sharma. (Faculty of Soft skill trainer

of INC, Bikaner). Under whose genuine and inspiring guidance the

present piece of investigation could get its present shape within such a

limited range of time.

I am highly thankful to Mr. Vipul Verma (Territory Development

Manager) who guided me in the survey the area and to the management of

PepsiCo for permitting me to carry out the present research work.

Special thanks are also due to all the employees, customers, retailers and

distributors related to PepsiCo Company for their precious co-operation

provided to the investigator during the period of data collection.

More than anyone I wish to records my feeling of gratefulness to my

family members. I am thankful to my father Mr. Bajarang lal Tanwar &

my friends. Their inspirations, affection, care and whose blessings have

given me necessary enthusiasm and encouragement to complete this

work.

Place: Bikaner Umesh Tanwar

7NBBK030


DECLARETION

I Umesh Tanwar declaring that all the information given in this report is correct and all the data given by me in this report are true as far as I know. I am Also declaring that all the work done in this report is my real work and I did not copy it from anywhere.

Umesh Tanwar7NBBK030INC Bikaner


Chapter- 1

INTRODUCTION OF PEPSICO

Profile of Pepsi International

Pepsi is situated at Somars New York in U.S.A , Indra K Nooyi is chairman

and CEO of Pepsi.

Calab bradham A North Carolina pharmacist concocted Pepsi-cla in the year

1890 as a cure Dyespsia (indignation), in 1903, business strategy worked & in

1905 he built in 1909 he had a New York advting agency. PepsiCo Food &

Beverages International, a full fledge co. earn s more then half of its global

revenues from snack foods & fast foods. PepsiCo’s major Business includes

Pepsi foods, KFC, pizza hut, taco bell & California pizzas is a world leader in

restaurant business also. PepsiCo gained entry to India in 1988 by creating a

joint venture with the Punjab government-owned Punjab Agro Industrial

Corporation (PAIC) and Voltas India Limited. PepsiCo is a world leader in

convenient foods and beverages, with 2006 revenues of more than $35 billion

and 168,000 employees. PepsiCo brands are available in nearly 200 countries

and territories and generate sales at the retail level of about $92 billion

PepsiCo’s mission is “To be the world's premier consumer products

company focused on convenient foods and beverages.


SALES AND MARKETING DEPARTMENT

Sales and marketing department which controls all the activities relating to

marketing and sales. All the order of supplying drinks are received by this

department. It maintains the adequate supply to its agencies. Sales force has

the direct link with customers. It collects the marketing information and try to

acquaint with his to higher management.

The sales forces comprises following staff.

Managing Director

General Manager (Marketing)

Regional Manager

Area Manager

Territory Manager

Senior Sales Executive

Sales Executive

Management Trainees

Sales and Marketing Manager control the entire sales forces. Sales supervisors

perform the following tasks:

Sales supervisors find and cultivate new customers.

Sales supervisors skillfully communicate information about the

company’s product and Services.

Sales supervisors know the art of salesmanship approaching presenting

answering objections and closing sales.

Sales supervisors provide various services to the customers consulting

of their problems rendering technical assistance, arranging financing and

expending delivery. Sales supervisor’s carryout market research and

intelligence work and fill in call report.


PRODUCT MIX

Products

The group manufactures and markets Carbonated and Non-Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi, Pepsi My Can, Pepsi Diet, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, Slice Orange, Evervess Soda and Aquafina, Tropicana, Tropicana Twister.

Brand available in 200ml.1. Pepsi2. Mirinda Orange3. Mountain Dew4. 7up5. Tropicana Premium Gold

Brand available in 250ml.1. Slice2. Tropicana Twister3. Pepsi My Can4. 7 Up Can

Brand available in 300ml.1. Pepsi2. Mirinda Orange3. Mirinda Lemon4. Mountain Dew5. 7up6. Soda


Brand Available in (330ml)

1. Pepsi Can

2. Mountain Dew Can

3. 7UP Can

4. Mirinda Can

5. Pepsi Diet Can

Brand Available in (350ml)1. Tropicana Twister

Brand Available in (500ml)1. Slice

2. Pepsi Diet

3. Aquafina

Brand available in (600ml)1. Pepsi2. Mirinda Orange3. Mountain Dew 4. 7up 5. Soda

Brand Available in (1Ltr)1. Tropicana Premium Gold2. Aquafina Water3. Lehar Soda

Brand Available in (1.2 Ltr)1. Slice2. Tropicana Twister


Brand available in (2 Ltr)1. Pepsi2. Mirinda Orange3. Mirinda Lemon4. Mountain Dew5. 7up

Price of the product

Product Bottle in MT Price200 ml 24 168200 ml Tropicana Premium Tetra

30 397

200 ml Slice Tetra Pack 24 216300 ml 24 215250 ml Can 24 330330 ml Can 24 580350 ml Twister 24 468500 ml Aquafina 24 168500 ml Slice 24 498600 ml Soda 24 216600 ml PET 24 4441Ltr. Aquafina 12 1041Ltr. Tropicana Premium 12 7131.2 Ltr Slice 12 5101.5 Ltr Soda 12 2072 Ltr PET 9 414


CHANNEL OF DISTRIBUTION IN VARUN BEVERAGE

LIMITED

Channel of distribution means flow of goods from manufacturer to

ultimate consumer in practice there are various kind of channel of

distribution.

Varun Beverage Limited use two level channel of distribution i.e a

distribution and retailer between V.B.L and consumer.

Diagrammatical we can represent as:-

V.B.L

Distribution

Retailer

Consumer


AVERAGE TRANSPORTATION TIME PER

CASE OF TEMPO IN BIKANER

Total no. of case include in transportation = 70 case

Total travelling time taken by tempo = 360 minute

Average travelling time per case =

Total no. of case involve in transportation

Total travelling time taken by tempo

360

70 = 5.15 minute/ case


AVERAGE TRANSPORTATION TIME PER

CASE BETWEEN RETAILER AND SALESMAN

Total no. of case include in transportation = 70 case

Total transportation time = 540 minute

Average transportation time per case =

Total transportation time

Total no. of case involve in transportation

540 70

= 7.71 minute/ case


AREA OF DISTIRBUTION:

Agra

Mathura

Gwalior

Etawah

Dholpur

Aligrah

Firozabad

Jhansi

Delhi

Lalitpur

Raipur

Vishakhapattnam

Alwar

Bhiwadi

Jaipur

Jodhpur

Goa

Uttar Pradesh(Kosi)


AGENCY`s NAME OWNER NAME ADDRESS

S. R. TRADERS Mr.Manmohan Modern Market

YASHWRDAN

ENTERPRISE

Mr.Mukesh Joshi Modern Market

RAJESH ENTERPRISE Mr. Rajesh Khatri J.N.V Colony


PEPSI AGENCIE’S IN BIKANER MARKET

Chapter- 2

OBJECTIVE OF THE STUDY

The main objective of the present study was to know the merchandising

strategies of pepsi for its cold drinks. There were some of the secondary

objectives of the present study. There were as under:

To develop the related psychometric test and questionnaires for

measuring the merchandising pattern of Pepsi company.

To study the customers demand for products of company.

To explore the preferential attitude of customers towards the

products of company.

To investigate the problems of retailers and customers with regard

to products of company.

To analyze the facilities/services which are being provided to the

employees, customers and retailers by company.

To analyze the schemes which are being provided to the customers

& retailers by company?

To familiarize the concerning companies, the employees, the

retailers, the salesman and the customers with the features of the

results obtained in the present research and to encourage them to

modify their activities/behaviors according to the obtained results.


Chapter- 3

RESEARCH METHODOLOGY:

1. TYPE OF RESEARCH: Research is descriptive in nature.

2. POPULATION AND SELECTION OF SAMPLE

All the retailers who were dealing in the products of company in the main

areas of Bikaner city constituted the population for the present study. It

was not possible to include the whole population in the study. Therefore,

it was felt necessary to select a sample of the population which could

represent the whole population. A sample of 120 retailers related to Pepsi

Co. out of 850 retailers, was randomly selected from the ten routes of

main areas of Bikaner city.

3. DATA TYPE: Primary type

4. TOOLS FOR DATA COLLECTION: Questionnaire


MERCHANDISING STRATEGIES ADOPTED BY PEPSI

Creating awareness about the product.

Differentness in profit of Pepsi Products and Coca Cola

Discount in products

Provide Gravity Rack, Air Hanger, PVC Rack, Combo Shot

Provide Visi Cooler and OYC Cooler

Provide Board ( Glow Signs, Dealer Board)

Provide Shop Painting

Convincing the retailer to stock Pepsi products.

Display Scheme for Products

Discount in Products

Coupon Scheme

Visi Cooler and OYC Cooler Scheme

Rack Scheme

Provide Free MT

Yearly Target Achievement Gift Scheme

Provide membership of PEPSI GOLD CLUB PROMRAM

Auditing of Pepsi Gold Club Program 2008.

Audit the only those retailer who have got Pepsi Gold Club

membership.

1 Year Programme (February to June, July to October).

Type of outlet (Eatery, Grocery, Convenience).

Main outlet motivational scheme.

Check the condition of Pepsi Monopoly outlet.

Visi size compared with Coca Cola(Pepsi Visi > Coca Visi)

Check the purity of SKU (Stock Keeping Unit) of Pepsi Products.

Check the Impurity (Exp. - Real Juice, Amul Products, Treat and

Parle Product.


Chapter- 4

ANALYSIS AND INTERPRETATION

. Market Share of Pepsi in Soft drink Segment in Bikaner .

Pepsi = 32% Coca-Cola = 58% Other = 10%

Graph Showing Percentage of Retailer who sold exclusive Pepsi, Coke (Thums-Up) or Both Company Brand

Pepsi: - 25% Coke: - 20% Both Companies products: - 55%

. Graph Showing Percentage of Fridge Provided by Pepsi Company.


55%25%

20%

Pepsi Fridge: - 30% Cock Fridge: - 60% Own Fridge: - 10%

Graphical Showing Percentage of Gravity Rack Provided by Pepsi company.

Pepsi Gravity Rack: - 30%Coke Gravity Rack: - 45%Do not have Gravity Rack: - 25%

DATA INTERPRETATION


60%

10%30%

45%

25% 30%

Q. 1:- Do you purchase the soft drinks for your shop?

Q. 2:- Which soft drink you would like to purchase more in quantity?

Q. 3:- Are you satisfied by service given by salesman?

Q. 4:- What type of interaction you having with salesman or company’s man?


Q. 5:- Are you satisfied with the schemes given along with products?

Q. 6:- Do you want to improve in the service of the company?

Q. 7:- Is the salesman coming regular at your counter?


Q. 8:- Are you satisfied with company’s products and their quality?

Q. 9:- Does salesman easily change your damaged or outdated stock?

Q.10:-Is the company’s man (C.E. and ADC) come at your counter regular?


Q. 11:-Does company man listen and solve your service related problem?

Q. 12:-Does Company provides you enough accessories (helping tool)?

Q. 13:-Does the salesman take care of company’s accessories?


Q. 14:-Does service of the company match with your expectations to the actual service?

Q. 15:-Please indicate how strongly you agree or disagree with the following statement about company’s service?

1. Meeting with salesman is creating healthy environment.

2. Availability of all type of products at a time.


3. Availability of products in sufficient quantity.

4. Enrolled you in company’s various plans.

5. Solve your problem in very short time.


6. Change company’s faulty accessories immediately.

Q. 16:-Do you want any improvements company in


Chapter- 5

LIMITATIONS

Though the study is framed in a manner that it provides answer to the basic questions which are needed to study but sometimes it becomes a bit tougher to get the right answer from the respondents. Constraints which are there to limit the study are:-

Time of the respondents.

Lack of time to prepare the report.

Proper coordination from the side of respondents.

Understanding of the topic to the respondents.

Lack of presentation skills of respondents.

Biased answer given by respondents.


Chapter- 6

FINDINGS & CONCLUSION

Today is the area of competitions. The business is tremendously dominated by

the competitions. The sales force should be very effective to promote the sales

of the production for “Retailer’s” convenience; the concern has made the

arrangement to supply of the products to them at their shops. The trucks go to

market to make supply. Different schemes are introduced in the market to

promote the sale of cold drinks.

(i) Market share of Pepsi is just 32%, where coke stands with 58%.

(ii) Exclusive Pepsi outlets are 25% only.

(iii) Pepsi provides 30% Pepsi gravity racks

(iv) 65.88% retailers want improved services from the company

(v) Only 32.94% retailers are satisfied with company's services

(vi) Per counter regular visit percentage by a salesman is just 23.53

(vii) Easy replacement of damaged or outdated stock by company is

accepted by 8.24% retailers.

(viii) Only 29.41% retailers agree that they are enrolled by the company

in their various plans.


Conclusions withdrawn on the basis of Present Research Work

(ix) The Coke has more Market-Share rather than Pepsi.

(x) The Coke has been found to have more customers than the Pepsi.

(xi) Pepsi Company is not providing more and more attractive

schemes to its products in comparison to the Coca-Cola Co.

(xii) Relationship between Market-share & Packaging and Labeling,

provision of facilities, Quality Satisfaction, Liking of Flavors, and

Distribution Strategy & Customers’ Demand was found stronger

in case of Coca-Cola Co. in comparison to Pepsi Co.


Chapter- 7

ANNEXURE

QUESTIONNAIRE Service Quality Performance of Pepsi Company

In light of their merchandising strategy(Questionnaire for retailers & customers)

Supervisor: Investigator:Ms. Chanchal Sharma Umesh Tanwar

Faculty of ICFAI National College, MBA student

Bikaner (Raj.) ICFAI NATIONAL COLLEGE

Respected Sir,The questionnaire is being supplied to you for measuring the ‘the service quality performance in beverage industries with special reference of PepsiCo’. Please read the questions and give your responses by the tick-mark on one of the alternative. Your responses would be kept confidential. They will be used only for the research purpose.________________________________________________________________________

Question No. Questions________________________________________________________________________

Q. 1:- Do you purchase the soft drinks for your shop?

Yes Not

Q. 2:- Which soft drink you would like to purchase more in quantity?

PepsiCo Coca-Cola

Q. 3:- Are you satisfied by service given by salesman? Always Many a times

Somes Rarely NeverQ. 4:- What type of interaction you having with salesman or company’s man? Formal Friendly Rudely Interaction


Q. 5:- Are you satisfied with the schemes given along with products? Always Many a times Somes Rarely

Never

Q. 6:- Do you want to improve in the service of the company? Yes Not

Q. 7:- Is the salesman coming regular at your counter? Regular Frequent visit

Irregular Rarely NeverQ. 8:- Are you satisfied with company’s products and their quality? Always Many a times Somes Rarely Never Q. 9:- Does salesman easily change your damaged or outdated stock? Always Many a times Somes Rarely

Never

Q.10:-Is the company’s man (C.E. and ADC) come at your counter regular? Always Many a times Somes Rarely

Never

Q. 11:-Does company man listen and solve your service related problem? Always Many a times

Somes Rarely Never

Q. 12:-Does Company provides you enough accessories (helping tool)? Always Many a times

Somes Rarely Never

Q. 13:-Does the salesman take care of company’s accessories? Always Many a times

Somes Rarely Never


Q. 14:-Does service of the company match with your expectations to the actual service? Always Many a times Somes Rarely

Never

Q. 15:-Please indicate how strongly you agree or disagree with the following statement about company’s service?

1. Meeting with salesman is creating healthy environment. Strongly agree Agree Somewhat agree Disagree Strongly disagree

2. Availability of all type of products at a time. Strongly agree Agree Somewhat agree Disagree Strongly disagree

3. Availability of products in sufficient quantity. Strongly agree Agree Somewhat agree Disagree

Strongly disagree

4. Enrolled you in company’s various plans.Strongly agree Agree

Somewhat agree Disagree Strongly disagree

5. Solve your problem in very short time. Strongly agree Agree Somewhat agree Disagree Strongly disagree

6. Change company’s faulty accessories immediately. Strongly agree Agree

Somewhat agree Disagree Strongly disagree Q. 16:-Do you want any improvements company in

Time Management Service

Scheme Interaction


final report on pepsi's merchandising)

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