A

Project Report

On

“Feasibility Study on Scope of Institutional Marketing and Distribution

of Soft Drinks for Aurangabad City”

For

PepsiCo India Ltd,Aurangabad.

By

Mr. Ramesh S. SirsathRoll No. M-9

Deogiri Institute of Management Studies, AURANGABAD

Submitted to

Dr. Babasaheb Ambedkar Marathwada University, Aurangabad

Towards Partial Fulfillment ofMaster’s Degree in Business Administration.

2011-2012

1

Declaration

This is to certify that, In plant Training Report is genuine which has

been prepared by undersigned after successful completion of 5 weeks

training in “PepsiCo India Ltd, Aurangabad.” which is partial

fulfillment of Master of Business Administration.

It is not copied or used any where academic purpose.

Mr. Ramesh S. Sirsath MBA (4th SEM)

2

ACKNOWLEDGEMENT

At the out set I started off with my project, I was bewildered and very much ensured of

the plans which PEPSI had laid out. The organization had preplanned all the programs;

from the inspection to he completion which was a long journey. During this period if

there has been a thing that kept me moving was the phenomenal support and warm co-

operation that I received from the whole PEPSI team.

I am very indebted to Mr. Akshay Kulkarni (TDM), PEPSI Aurangabad for giving me the

opportunity to undergo my summer project with them and also being my project guide.

Inspire of being extensively busy, he was always ready to spare time for me. A

considerate and dynamic guide as he was had given us full freedom and equal amount of

responsibility, which made me feel that my opinion really mattered.

I am also thankful to Mr. Rameshwar Jadhav (Sales executive), Mr. Aslam (Customer

Executive) Pepsi without whose co-operation and support my project would have been

incomplete.

On home grounds, special thanks are due to our HOD Mr. Harshali Deshmukh and

coordinator Prof. Medha Kulkarni for there support and thorough help for the completion

of my project.

Last but not the least, I am thankful to my parents, without whose support I would not

have been able to complete my summer project.

Working with Pepsi for two months has been a wonderful learning experience and one

that is sure to help me in my career.

Mr. Ramesh S. Sirsath

3

INDEX

Chapter No

Title Page No

1 Executive Summary 1

2 Introduction 3

3 Company Profile 10

4 Research Methodology 20

5 Data Analysis & Interpretation 23

6 Findings 23

7 Recommendations 45

8 Questionnaire 48

9 Bibliography 53

4

EXECUTIVE SUMMARY

Need of study: To find out scope for the organization to enter the industrial

canteens.

To find out the loopholes in the distribution process in

specific areas of Cidco region in Aurangabad.

Objectives:

To study the availability and consumption of Pepsi in the

industrial canteens.

To find out the scope of penetrating in the areas of

unavailability in the industrial belt in and around Aurangabad.

To find out the reasons for low sales of Pepsi products in the

retail outlets in the area of Cidco.

To find out quick & efficient means of transportation for the

supply Pepsi to the areas of unavailability.

Research Methodology:

Research in common parlance refers to a search for knowledge. One can also define

research as scientific and systematic search for pertinent information on a specific topic.

In fact, research is an art of scientific investigation.

Sample Size: The sample size was determined to be 20 each from

the two industrial regions. The samples were selected where in the

canteen facility was the sample size for the second survey of the

5

retail outlets in the area of Cidco was selected to be 25. This

sample was selected randomly in the area.

Questionnaire: The questionnaires were designed so as to extract

complete information required. The answers thus derived gave an

in depth information about the status of Pepsi products in the

industrial canteens.

The second questionnaire was prepared for the retail outlets

Provide the information about the available stock, the frequency

of supply to the outlets and the sale of the same. The information

thus gathered through this questionnaire helped to device new

transportation means so that the supply was regular and thus

increase the sales.

Analysis of data:

The analysis was done through clustering the data. The data then was presented in the

form of pie charts & bar diagrams so as to provide a clear picture of the available

information. The analysis thus was done both diagrammatically & verbally to get a clear

view.

Brief about the project:

The project was done for PepsiCo India ltd; Aurangabad. The project was completed in

two parts. The first being the study about the availability of soft drinks in the industrial

canteens & the consumption pattern. The survey also studied the frequency of buying the

soft drinks from the dealer. The main objective being to find whether there was any scope

for the company to expand its business in this non traditional channel.

6

The second survey carried out was to know the loopholes in the distribution network in

the area of Cidco in Aurangabad. It also studied the options that were present for efficient

transportation for the company to increase its constantly falling business.

Limitations:

The time distributed for each of the phase of survey was limited,

which did not give time for in depth research.

The project was in the area of Soft drinks which sells the most in the

summer seasons and the project was conducted in the rainy season

which posed a hindrance in the research.

7

INTRODUCTION

Marketing Channels & Value Networks:

Most producers do not sell their goods directly to the final users; between them stands a

set of intermediaries performing a variety of functions. These intermediaries constitute a

marketing Channel (also called a trade channel or distribution channel). Formally

marketing channels are sets of interdependent organizations involved in the process of

marketing a product or service available for use or consumption. They are the set of

pathways a product or service follows after production, culminating in purchase and use

by the final end user.

Conventional distribution channel:

A conventional marketing channel comprises an independent producer,

Wholesaler(s), and retailer(s).Each is a separate business seeking to maximize it’s

DistributionChannel

ConventionalChannel

Non – ConventionalChannel

8

own profits, even if this goal reduces profit for the system as a whole. No channel

member has complete or substantial control over other members.

The hierarchy in the conventional marketing channel is as follows:

0 – level 1 – level 2 – level 3 - level

Non – conventional distribution channel:

Sweeping changes in the structure of distribution channels are having a dramatic impact

on the business model and go to market strategies of produce supplier.

Gone are the days where a shipper could execute a single “one size fits all” strategy that

aligned with the business models of largely homogenous traditional customers.

Non traditional channel partners are professionals who specialize in focus their practices

on retail sales.

Manufacturer

Consumer

Manufacturer

Consumer

Retailer

Manufacturer

Consumer

Retailer

Wholesaler

Manufacturer

Wholesaler

Jobber

Retailer

Consumer

9

They are offering goods and services from a location or in format that differs from what

the franchise system typically does.

Why engage in non conventional distribution channel?

Brand awareness: Non conventional outlets in high visibility locations can

significantly increase brand’s public awareness.

Untouched market: Non conventional outlets may allow a franchisor an

opportunity to reach new customer who otherwise might be untouched.

Market expansion: It provides the franchisees, distributors &other middlemen in

the chain of distribution an opportunity to expand there market .

Market saturation: Non conventional distribution channel gives the marketer a

chance to sustain in the market with his products though the conventional areas

are in the verge of saturation.

Low cost of operating: Non conventional outlets may offer lower operating costs

and may be less susceptible to value pricing demands thus allowing margins.

Speed: Non conventional outlets often open up faster than traditional outlets.

Non conventional channel of distribution includes following channels:

Education: School and college canteens

Transportation :Airlines, Airport stalls, Bus stands and Railway stations

Entertainment: Theaters, amusement parks, clubs, tourist spots and

Multiplexes

10

Canteens: Institutions like Offices, Hospitals and Caterers.

Petrol pumps: Stores and Food courts

Hotels and Restaurants

Food services: Mobile Vending, hawkers, juice centers, cybercafé and

wine shops.

How a distributor increases efficiency?

(a) Number of contacts M X C = 3 X 3 = 9

(b) Number of contacts M + C = 6

M = Manufacturer C = Consumer D = Distributor

M C

M C

M C

D

11

M

M

C

C

M C

Soft drinks can trace their history back to the mineral water found in springs.

Soft drinks can trace their history back to the mineral water found in natural springs.

Bathing in natural springs has long been considered a healthy thing to do; and mineral

water was said to have curative powers. Scientists soon discovered that gas carbonium or

carbon dioxide was behind the bubbles in natural mineral water.

The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were

made from water and lemon juice sweetened with honey. In 1676, the Compagnie de

Limonadiers of Paris were granted a monopoly for the sale of lemonade soft drinks.

Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft

drink to thirsty Parisians.

Joseph Priestley:

In 1767, the first drinkable man-made glass of carbonated water was created by

Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern

Bergman invented a generating apparatus that made carbonated water from chalk by the

use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced

in large amounts.

John Mathews:

In 1810, the first United States patent was issued for the "means of mass manufacture of

imitation mineral waters" to Simons and Rundell of Charleston, South Carolina.

However, carbonated beverages did not achieve great popularity in America until 1832,

when John Mathews invented his apparatus for the making carbonated water. John

Mathews then mass-manufactured his apparatus for sale to soda fountain owners.

12

Health properties of mineral water:

The drinking of either natural or artificial mineral water was considered a healthy

practice. The American pharmacists selling mineral waters began to add medicinal and

flavorful herbs to unflavored mineral water. They used birch bark, dandelion,

sarsaparilla, and fruit extracts. Some historians consider that the first flavored carbonated

soft drink was that made in 1807 by Doctor Philip Syng Physick of Philadelphia. Early

American pharmacies with soda fountains became a popular part of culture. The

customers soon wanted to take their "health" drinks home with them and a soft drink

bottling industry grew from consumer demand.

The Soft Drink Bottling Industry:

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink

bottle tops during the early days of the bottling industry. Carbonated drink bottles are

under a lot of pressure from the gas. Inventors were trying to find the best way to prevent

the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was

patented by William Painter, a Baltimore machine shop operator. It was the first very

successful method of keeping the bubbles in the bottle.

Automatic Production of Glass Bottles

In 1899, the first patent was issued for a glass-blowing machine for the automatic

production of glass bottles. Earlier glass bottles had all been hand-blown. Four years

later, the new bottle-blowing machine was in operation. It was first operated by the

inventor, Michael Owens, an employee of Libby Glass Company. Within a few years,

glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.

Hom-Paks and Vending Machines:

During the 1920s, the first "Hom-Paks" were invented. "Hom-Paks" are the familiar six-

pack beverage carrying cartons made from cardboard. Automatic Vending machines also

began to appear in the 1920s. The soft drink had become an American mainstay.

13

COMPANY PROFILE

PepsiCo is a world leader in convenient foods and beverages, with 2009 revenues of

more than $29 billion and 153,000 employees. The company consists of Frito-Lay

North America, PepsiCo Beverages North America, PepsiCo International and

Quaker Foods North America. PepsiCo brands are available in nearly 200 countries

and territories and generate sales at the retail level of about $78 billion.

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

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

Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats

Company, including Gatorade, in 2001.

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

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

PepsiCo’s Mission:

“To be the world's premier consumer products company focused on convenient foods and

beverages.  We seek to produce healthy financial rewards to investors as we provide

opportunities for growth and enrichment to our employees, our business partners and the

communities in which we operate.  And in everything we do, we strive for honesty,

fairness and integrity.”

PepsiCo’s Vision:

14

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

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

sustainability vision which states: “PepsiCo’s responsibility is to continually improve all

aspects of the world in which we operate – environment, social, economic -- creating a

better tomorrow than today.”

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

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

making PepsiCo a truly sustainable company.

Shareholders:

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in

the United States. The company is also listed on the Amsterdam, Chicago, Swiss and

Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the

corporation was founded.

PepsiCo Headquarters:

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

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

Edward Durrell Stone, one of America's foremost architects. The building occupies 10

acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a

world- acclaimed sculpture collection in a garden setting.

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

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

Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were

designed by the world famous garden planner, Russell Page, and have been extended by

François Goffinet. The grounds are open to the public, and a visitor's booth is in

operation during the spring and summer.

PepsiCo’s Sustainable Advantage:

15

Three major sustainable advantages give PepsiCo a competitive edge as we operate in the

global market place:

(1) Big muscular brands

(2) Proven ability to innovate and create differentiated products; and

(3) Powerful go-to-market systems.

Making it all work are their extraordinarily talented and dedicated people.

When they take these competitive advantages and invest in them with dollars generated

from top-line growth and cost-saving initiatives, they sustain a value cycle for their

shareholders.

In essence, investing in innovation fuels the building of their brands.

This in turn drives top-line growth.

Dollars from that top-line growth are strategically reinvested back into new products and

other innovation, along with cost-savings projects.

Thus, the cycle continues. These are very exciting times for PepsiCo. With more than

140,000 employees around the world, they’re all part of a strong and successful business.

And although they're in different divisions and countries, they share a common set of

values and goals. they all know that success takes the work of talented and dedicated

people who are committed to making an impact every day. Their ability to grow year

after year is driven by their ability to attract, develop, and retain world-class people who

will thrive in their environment. This is why they are committed to making PepsiCo the

best consumer products company in the world in every aspect of their business. PepsiCo -

Taste The Success! symbolizes what they stand for as an organization.

Goal for the future:

16

Their goal is to capture and convey the excitement of being part

of a dynamic, results-oriented company, with powerful brands and world class people.

Career opportunities at PepsiCo:

A career in the PepsiCo organization is intended to be an accumulation of challenging

experiences over the course of many years - with each experience contributing to the

growth of the individual and organization. Their objective is to match great talent with

important opportunities to build their business.

When thinking about new opportunities and potential moves, they typically consider five

factors. These are: proven results, leadership capability, and functional excellence,

knowing the business cold and key experiences. These elements are evaluated against the

current set of opportunities and their longer-term commitment to growth and

development of their employees.

Major Milestones:

1965 Milestones

PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief

Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief

Executive Officer of Frito-Lay, through the merger of the two companies.

Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern,

N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito

Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company,

founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the

Board of Directors of the new company; Donald M. Kendall is president

and chief executive officer. The new company reports sales of $510 million

and has 19,000 employees.

17

Major products of the new companies were:

Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964)

and Mountain Dew (introduced by Tip Corporation in 1948).

Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932),

Lay's brand potato chips (created by Herman W. Lay in 1938), Cheeotos

brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and

Rold Gold brand pretzels (acquired 1961).

Mountain Dew launches its first campaign "Yahoo Mountain Dew ... it'll

tickle your innards."

1970 Milestones

PepsiCo sales pass the $1 billion mark. The company has 36,000 employees.

PepsiCo moves from New York City to new world headquarters in Purchase,

N.Y. The new corporate headquarters feature a building by one of America's

foremost architects, Edward Durrell Stone (1902-1978), set on a campus of

144 acres amid an outdoor sculpture garden.

Frito-Lay begins a program of expansion. Over the next decade, the company

opens, on average, more than one new plant a year.

W.C. Fritos is introduced as Frito-Lay's new advertising mascot.

Wilson Sporting Goods, a top name in sports equipment, joins PepsiCo. It is

divested in 1985.

Pepsi introduces the industry's first two-liter bottle.

Pepsi is the first company to respond to consumer preference with lightweight,

recyclable, plastic bottles.

1985 Milestones

PepsiCo is now the largest company in the beverage industry. The company

has revenues of more than $7.5 billion, more than 137,000 employees.

Pepsi-Cola products are available in nearly 150 countries and territories

around the world. Snack food operations are in 10 international markets.

18

Frito-Lay expands into new headquarters in Plano, Texas.

PepsiCo's first line of sweet snacks, Sonrics, is added in Mexico.

The cola war takes "one giant sip for mankind," when a Pepsi "space can" is

successfully tested aboard the space shuttle.

Pepsi's successful "Entertainment Marketing" strategy is extended, with

singers Lionel Richie and Tina Turner and actor Michael J. Fox, among

others.

Pepsi distributes products in China.

Pepsi-Cola began selling its products outside the United States and Canada in

the mid-1930s, opening in the United Kingdom in 1936. Operations grew

rapidly beginning in the 1950s. Today, PepsiCo beverages are available in

more than 170 countries and territories. Brands include Aquafina, Gatorade

and Tropicana. In addition to brands marketed in the United States, PepsiCo

International brands include Mirinda, Seven-Up and many local brands.

PepsiCo began its international snack food

operations in 1966. Today, products are available in nearly 170 countries.

Often PepsiCo snack food products are known by local names. These names

include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom,

Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and others.

19

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

unique products for local tastes

PROFILE OF PEPSICO AT AURANGABAD

Pepsi the leading soft drink company in India has devised a strong distribution system

that caters both its urban and rural customer.

The hub (warehouse) serves as the nodal point for a particular region and supplies to

various distributors and they cater to all surrounding market.

At Aurangabad there is only one hub which is the main warehouse and there are number

of distribution points.

There are number of distribution in Aurangabad attached to the main warehouse which is

the C and F agent wherein the bottles come from the bottling plan.

The Trade Distribution Channel at Pepsi (Aurangabad)

Distribution

Distribution Distribution

Distribution

HUB

20

There are two categories of plants such as Franchisee Owned Bottling Operation (FOBO)

and Company Owned Bottling Operation (COBO) where the bottling takes place and

from here, the soft drink is supplied to different destinations. There are plants at Paithan,

Chembur and Roha where the bottles are filled and dispatched to Aurangabad warehouse

where loading and unloading of bottles take place.

Filling of bottles take place at the bottling plant and from here the bottles are dispatched

to various warehouse then to the distributors situated at various points in the city. From

here it goes to the retailers and then to the final customers.

Bottling Plant

Distributors

Warehouse

Retailers

21

Sales Hierarchy:

The Entire Aurangabad city is been monitored by Territory Development Manager

(TDM). The Aurangabad region owns a warehouse which is managed by Account

Development Coordination (ADC) as an independent profit center. The ADC is assisted

by 2-3 customer executives (CE). Finally at the end of the hierarchy there is Route

Agents (RA) who is hired by the distributors to sell the products to the retailers.

TDM

ADC

CE CE

QSM QSM QSM QSM

22

Share of Pepsi for retail trade survey in Aurangabad:

SHARE OF PEPSI IN RTS IN NASHIK

0%

10%

20%

30%

40%

50%

60%

70%

PEPSI COCO-COLA

Share of Pepsi in the field survey in Aurangabad:

23

Aurangabad

SHARE OF PEPSI IN THE FS IN NASHIK

46%

47%

48%

49%

50%

51%

52%

53%

PEPSI COCO-COLA

RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also define

research as scientific and systematic search for pertinent information on a specific topic.

In fact, research is an art of scientific investigation. The Advanced Learner’s Dictionary

of Current English lays down the meaning of research as “a careful investigation or

inquiry especially through search for new facts in any branch of knowledge.”

Research Problem

Pepsi wanted to find out the scope for the company to enter the institutional canteens. So

the survey was conducted to find out which of the company canteens have soft drinks

served for there employees.

The second problem faced by the company was that of distribution in the area of Cidco

due to which the sale had dropped drastically. The survey was conducted to find out the

stock of products from both the companies (i.e. coke &Pepsi).

Type of research

24

Aurangabad

The type of research conducted was a descriptive research. The survey method followed

was of structured data collection.

Sample Design

In the survey of the industrial region of Satpur and Ambad, 50 Companies

were visited, and 10 of the nearby outlets were visited to find out the

potential for the Pepsi.

In the second face of the project the survey was conducted in the area of

Cidco, where in 50 of the outlets were visited to find out the problems faced

by them.

The sample size was decided on the basis of suitability and suggestion by the

project guide (TDM of Pepsi, Aurangabad).

Research Design

A formal questionnaire was administered and the questions were asked in a pre-arranged

order, thus it was a direct design. In the questionnaire most of the questions were fixed

alternative questions type.

Data Collection

The sources of information are generally classified as primary and secondary. The

sources of information can be classified in to documentary source and field source.

Books, manuscript, diaries letters etc., from the secondary or documentary sources while

the information given /collected by individuals and groups constitute primary or field

sources. The difference between primary and secondary data is a matter of relativity;

data, which are primary in the hands of one, become secondary in the hands of other.

25

Primary data:

Primary data refers to information that is generated to meet the specific requirements of

the investigation at hand. On the other hand, secondary data is

Information that is collected for a purpose other than to solve

the specific problem.

Older investigation.

During the project the primary data was collected through the following ways of data collection.

Observation method Interview method Through questionnaire

Secondary data:

The secondary data was collected through the following sources:

Website of the company. Company reports of the previous years for the Aurangabad region.

Analysis:

The facts and figures collected were processed with a view to reducing them to

manageable proportion. Only by such a careful and systematic processing, the data

collected will lend itself for statistical treatment and meaningful interpretation leading to

formulation of a theory or a finding. Thus, the data processing comprises of editing,

coding, categorization, and tabulation.

Presentation and Report:

After the analysis and tabulation is completed, the next step is usually a presentation of

the major findings to the sponsor of the study. This includes a presentation of all the

26

major tabulations in percentage terms. It may also include a summary of major findings

and some recommendations. A formal report is then followed by the presentation.

DATA PRESENTATION & INTERPRETATION

FOR THE INDUSTRIAL REGION OF SATPUR

1. Number of workers in the organization:

NO OF WORKERS IN THE ORGN

76%

12%

8%4%

>250

250 - 500

500 - 750

750 - 1000

Of the 25 companies visited in the area of Satpur 19Co’s have workers less than

250,3Co’s had workers ranging in between 250-500,2Co’s had workers ranging in

between 500 -750,and 1 among them had workers more than 750.

27

2. Number of staff members in the organization:

NUMBER OF STAFF MEMBERS IN THE ORGANISATION

56%

44%

0%

>100

100 - 250

250 - 400

Out of the 25 companies surveyed 14Co’s had staff members less than 100.11 of

them had members ranging from 100-250 and none of the companies had staff

members more than 250.

3. Facility of canteen’s in the organizations:

CATEEN FACILITY IN THE ORGANISATION

52%48% YES

NO

Out of the 25 Co’s surveyed 13Co’s had the canteen facility and12 among them did not

provide the employees with the canteen facility.

28

4. Availability of soft drinks in the canteens:

AVAILABILITY OF SOFT DRINKS IN THE CANTEENS

23%

77%

YES

NO

Out of the 13Co’s that had the canteen facility only 3 of the companies served their

employees with soft drinks.

5. Brands of Pepsi that are available in the canteens:

BRANDS OF PEPSI AVAILABLE

60%

0%0%0%0%

20%

20%0% PEPSI

MIRINDA/O

MIRINDA/L

7'UP

MOUNTAIN DEW

MANGOLA

DUKES

AQUAFINA

The popular brands that the canteens had were Pepsi, Mangola and Dukes. All the

canteens had Pepsi, one of them also served Mangola and one served Dukes as in

addition to Pepsi.

29

6. Brands of Coca-cola those are available in the canteens:

BRANDS OF COCO-COLA

50%

25%

0%

25%

0%

0%

0%

COCO-COLA

THUMPS UP

LIMCA

SPRITE

FANTA

MAAZA

KINLEY

The brands that were available of Coco-cola were Coco-cola, Thumps-Up and Sprite.

Two of the Co’s had Coco-cola, along with it one of the canteens served Thumps-Up and

one served Sprite.

7. Stock of the product at a given point of time:

STOCK OF PEPSI BRANDS IN THE CANTEENS AT A GIVEN TIME

67%

33%

1-5 CRATES

5-10 CRATES

Two of the Co’s out of the 3Co’s having the soft drinks available had a stock between 1-5

crates and one of them had the stock of 5-10 crates at a regular basis for the products of

Pepsi.

30

8. Stock of the coke products at a given point of time:

STOCK OF COCO-COLA BRANDS IN THE CANTEENS AT A GIVEN TIME

50%50%1-5CRATES

5-10CRATES

Out of the two Co’s having coke products the stock of there brands was 1-5 crates in one

of the canteen and 5-10 crates in the other.

9. Frequency in purchase for Pepsi products:

FREQUENCY OF PURCHASE OF PEPSI BRANDS

34%

33%

33%EVERY WEEK

EVERYFORTHNIGHT

EVERY MONTH

31

The frequency of purchase of Pepsi Brands was distributed equally. One of the

companies preferred to re-stock every week, the other every fortnight while the

remaining one preferred it every month.

Frequency in purchase of Coco-cola products:

FREQUENCY OF PURCHASE OF COCO-COLA BRANDS

50%

0%

50%

EVERY WEEK

EVERYFORTHNIGHT

EVERY MONTH

The frequency of purchase of Coco-cola brands was distributed between weekly and

monthly purchases. One of the Co’s purchased it once a week, while the other preferred it

once a month.

10. Companies interested in buying mineral water jars :

COMPANYS PREFERING TO BUY MINERAL WATER JARS

52%48%YES

NO

32

Out of the 25 companies surveyed, 13 companies gave a positive response to buy the

mineral water jars that would be provided by PepsiCo and 12 preferred to arrange it

through other means.

11. Availability of outlets outside the company:

AVAILABILITY OF OUTLETS OUTSIDE THE COMPANY

56%

44% YES

NO

Out of the 25companies surveyed 14 companies had outlets outside there campus, while

11 of them did not have any such facility.

12. Distance of the outlet from the company:

DISTANCE OF THE OUTLET FROM THE COMPANY

43%

50%

7%

JUST OUTSIDETHE COMPANY

100M AWAY

500M AWAY

6 of the 14 outlets were situated just outside the company, 7 were at the distance of 100m

from the company and 1 among them was at a distance of 500m.

33

FOR THE INDUSTRIAL REGION OF AMBAD

1. Number of workers in the organization:

NUMBER OF WORKERS IN THE ORGANISATION

76%

16%

4% 4%

>250

250 - 500

500 - 750

750 - 1000

Of the 25 Companies surveyed in the area of Ambad, 19 Companies had workers less

than 250,4 had workers ranging between 250-500,1 had workers in between 500-750, & 1

Company had workers more than 750 &less than 1000.

2. Number of staff members in the organization:

NUMBER OF STAFF IN THE ORGANISATION

84%

16%0%

>100

100 - 250

250 - 400

34

The staff members of 21Companies were less than 100, in 4 Companies the staff

members were in between 100-250 and there was no company having staff members

more than 250.

3. Availability of canteens in the organization:

CANTEEN FACILITY IN THE ORGANISATION

36%

64%

YES

NO

Out of the 25 companies surveyed in the Ambad region only 9 companies had canteen

facility for there employees which was less than 50% of the sample size.

4. Availability of soft drinks in the canteens:

AVAILABILITY OF SOFT DRINKS IN THE CANTEENS

44%

56%

YES

NO

35

Out of the 9 companies that had the canteen facility only 4 canteens provided their

customers with soft drinks and the other 5 canteens were with out soft drinks.

5. Brands of Pepsi that are available in the canteens:

AVAILABLE BRANDS OF PEPSI IN THE CANTEENS

66%0%0%0%0%

17%

17%0%

PEPSI

MIRINDA/O

MIRINDA/L

7'UP

MOUNTAIN DEW

MANGOLA

DUKES

AQUAFINA

The canteens that have soft drinks of Pepsi had the brands of Pepsi, Mangola, Dukes.4 of

the canteens had Pepsi, 1 had Mangola and 1 had Dukes in the canteens.

6. Brands of Coco-cola that are available in the canteens:

AVAILABLE BRANDS OF COCO-COLA

37%

36%

0%

9%

9%

0%9%

COCO-COLA

THUMPS UP

LIMCA

SPRITE

FANTA

MAAZA

KINLEY

36

In the canteens that made the Coco-cola products available had the brands of Coco-cola,

Thumps-Up, Sprite, Fanta and Kinley.

7. Stock of Pepsi products at a given point of time:

STOCK OF PEPSI BRANDS IN THE CANTEENS AT A GIVEN TIME

75%

25%

1-5 CRATES

5-10 CRATES

The canteens that had the products of Pepsi stocked 1-5 Crates in 3 canteens and 1 of the

canteens had the stock more than 5 crates and less than 10 crates t a given point of time.

8.Stock of coke products at a given point of time.:

STOCK OF COCO-COLA BRANDS IN THE CANTEEN AT A GIVEN POINT OF TIME

50%50%1-5CRATES

5-10CRATES

37

Two of the canteens out of four having soft drinks had the stock of coke products

between 1 - 5 crates and the other two maintained their stock between 5 - 10 crates.

9. Frequency of Purchase of Pepsi products:

FREQUENCY OF PURCHASE OF PEPSI BRANDS

25%

50%

25%

EVERY WEEK

EVERY FORTHNIGHT

EVERY MONTH

The frequency of replenishing the stock of soft drinks varied from one week in a

company, while the other two preferred once a fortnight while the remaining one

replenished it every month in case of Pepsi products.

10.Frequency of purchase for Coco-Cola products:

38

FREQUENCY OF PURCHASE OF COCO-COLA BRANDS

50%

0%

50%

EVERY WEEK

EVERY FORTHNIGHT

EVERY MONTH

The stock of Coco-Cola was restocked every week by two canteens while the other two

restocked it every month.

11. Companies preferring to buy mineral water jars:

COMPANIES PREFERING TO BUY MINERAL WATER JARS

40%

60%

YES

NO

In the survey it was found that out of the 25 companies, 10 of the companies were willing

to buy the water jars provided by Pepsi, while the other 15 were in the favour of their

own water purifying water equipments.

12. Availability of outlets outside the company:

39

AVAILABILITY OF OUTLETS OUTSIDE THE COMPANY

44%

56%

YES

NO

In the survey out of the 25 companies, 11 of them had outlets for food outside their

companies while the other 14 did not have any.

13. Distance of the outlet from the company premises:

DISTANCE OF THE OUTLET FROM THE COMPANY

46%

45%

9%

JUST OUTSIDE THECOMPANY

100M AWAY

500M AWAY

The distance of these outlets from the companies was observed to be, just outside the

premises in case of 5 companies, 100 meters away in case of the other 5 and 500 meters

in case of 1 company.

40

FOR RETAIL OUTLETS

1. Availability of Pepsi in the outlets:

AVAILABILITY OF PEPSI IN THE OUTLETS

70%

30%

YES

NO

Pepsi was made available in 7 of the outlets out of the 10 outlets surveyed in the areas of

Satpur and Ambad.

2. Popular brands of Pepsi:

41

POPULAR BRANDS OF PEPSI

40%

18%

18%

24%

PEPSI

MIRINDA

7"UP

MOUNTAIN DEW

The brands that were available in these outlets were Pepsi which was the most popolar

one, Miranda, 7 Up, Mountain Dew among the others.

3. Combined Monthly Sale:

COMBINED MONTHLY SALE OF COCO-COLA AND PEPSI

30%

30%

20%

20%

1-50 CRATES

50-100 CRATES

100-150CRATES

150<

The monthly sale of soft drinks combining Pepsi and Coco-Cola were 1- 50 crates in case

of three outlets, 50 – 100 crates in three , 100 – 150 crates in two , 150 and above in two

of the other outlets.

42

4. Share of Pepsi in the monthly sale of soft drinks:

SHARE OF PEPSI

29%

71%

>50

<50

The share of Pepsi in the total sales of soft drinks was less than 50% in two of the outlets

and more than 50% in the other five outlets.

5. Time taken for executing the other:

TIME TAKEN FOR EXECUTING THE ORDER

86%

14%

1-2 WEEKS

2-4 WEEKS

The maximum time taken for executing the order was 1 – 2 weeks in case of six outlets

and 2-4 weeks in case of one of the outlets that provided Pepsi products.

43

FOR CIDCO AREA:

1. Availability of Pepsi products:

AVAILABILITY OF PEPSI PRODUCTS

86%

14%

YES

NO

Out of the 50 retail outlets surveyed in the Cidco area 43 of them had the Pepsi brands

and 7 of them did not prefer having them.

44

2. Availability of Aquafina:

AVAILABILITY OF AQUAFINA BY PEPSI (PACKAGED DRINKING WATER)

16%

84%

YES

NO

Aquafina was available only in 8 outlets and 42 of them had other brands of packaged

drinking water .

3. Stock of Cola’s at a given point of time:

STOCK OF COLA'S AT A GIVEN POINT OF TIME

70%

30%0%

1-10 CRATES

10-20 CRATES

20 & ABOVE

The stock that was available in the outlets was 1- 10 crates in 30 of them and 13 outlets

had stocks between 10 – 20 crates.

4. Stock of Aquafina at a given point of time:

45

STOCK OF AQUAFINA AT ANY GIVEN POINT OF TIME

74%

13%

13%

1- 10 BOXES

10-20 BOXES

20&ABOVE

The stock of Aquafina ranged from 1 – 10 boxes in six of the outlets and 10 – 20 boxes in

one of the outlets and the other one had stocked above 20 boxes.

5. Availabilty of Coco-Cola brands:

AVAILABILITY OF COCO-COLA BRANDS

84%

16%

YES

NO

As compared to Pepsi, Coke was available in 42 of the retail outlets and it was

unavailable in 8 of the outlets.

6. Stock of Coco-Cola brands at a given point of time:

46

STOCK OF COCO-COLA BRANDS AT A GIVEN POINT OF TIME

62%24%

14%

10-20 CRATES

20-30 CRATES

20 & ABOVE

The stock of Coco-Cola was 1 – 10 crates in 26 outlets, 10 – 20 crates in 10 outlets and

20 & above crates in six outlets.

7. Availability of VISI of Pepsi:

AVAILABILITY OF VISI (REFRIGERATOR) OF PEPSI

47%

53%

YES

NO

The Visi by Pepsi was available in 20 of the outlets out of 43 where Pepsi products were

sold.

8. Availability of signage boards of Pepsi:

47

AVAILABILITY OF SIGNAGE BOARDS OF PEPSI

76%

24%

YES

NO

The signages of Pepsi were available at 38 outlets of 50 outlets surveyed.

9. Number of signage boards in retail outlets:

NUMBER OF SIGNAGE BOARDS IN A RETAIL OUTLET

74%

26%

ONE

TWO

The number of signage was one in case of 28 outlets and two in case of 10 outlets.

48

RECOMMENDATIONS

For the area of Aurangabad:

Contact the industries having canteens and convince them to start keeping

soft drinks. The survey showed that approximately 32% of the canteens

had soft drinks, so Pepsi has a scope of increasing their sale by 68% in the

canteens itself.

Pepsi can start with vending machines in the medium scale and large scale

companies and can enter the institutions without their being facilities of

canteen.

PepsiCo should start with new schemes to attract the small hotels .As

compared to Pepsi Coco Cola has more schemes given to the hotel owners

that diverts them from the Pepsi products.

49

Separate distributor for the industrial area of Satpur and Ambad should be

appointed who would visit on alternate days and thus maintain a constant

supply of the products.

For the area of Cidco:

Complaints:

1. Deposit demanded is very high according to the company policy.

2. Dealer has not been regular in the season when the soft drinks were

on high demand.

3. Some of the retailers had problems with the distributors’

management.

4. The VISI provided by the company has not been maintained since

long.

5. Most of the retailers wanted more credit facility.

Recommendations:

50

1. To appoint a new distributor for the area of Cidco and the nearby areas

that faced regular distribution problem.

2. To visit the retail shops personally by the CE ( Customer Executive)

who would solve the problems faced by the retailers.

3. Credit facility can be extended to a few selected loyal retailers.

4. Cidco being an area with narrow roads, the vehicle for distribution has

to be small rather than a truck .The company’s suggestion was to use a

cycle cart for the distribution on a daily basis which was not a feasible

solution. On the basis of the survey it was recommended to use a

goods auto whose advantages over a cycle cart are mentioned below.

CYCLE CART GOODS AUTOSlow distribution Fast distribution

Risky: manually driven Safe: engine drivenCannot carry large number of crates due to

limited spaceCan carry large number of crates

Does not have protection from the atmosphere as it cannot be enclosed

Safe from all weather conditions as it is enclosed

Time consuming and covers limited area Quick service and can cover a wide area

Economically not feasible Economically viableFear of pilferage Safe in all respects

From the above distinction it is very obvious that goods auto is a better option for

distribution of Pepsi products in the Cidco area.

51

ANNEXURE

QUESTIONNAIRES:

(a) For industrial area:

1. What is the number of employees in the organization?

(a)Workers……………………… (b)Staff……………………..

2. Does the organization provide a canteen facility?

(a)Yes (b) No

If No go to Q 9.

3. Are soft drinks made available in the canteen?

(a)Yes (b) No

4. What are the different brands of Coca-Cola &Pepsi available in the canteen?

PepsiCo Coca-Cola

Pepsi Coca-Cola

52

Miranda/O Thumps-Up

Miranda/L Limca

7'UP Sprite

Mountain Dew Fanta

Mangola Maaza

Dukes Kinley

Aquafina

5. What is the availability (A) of the brands and their consumption(C) in crates?

PepsiCo Coca-Cola

Quantity 200ml 300ml 500ml 200ml 300ml 500ml

A C A C A C A C A C A C

Pepsi Coca-Cola

Miranda/O Thumps-

Up

Miranda/L Limca

7'UP Sprite

Mountain

Dew

Fanta

Mangola Maaza

Dukes

6. What is the frequency of purchase?

(a)Pepsi ……………………………………….

(b)Coca-Cola………………………………….

7. Why are the other brands preferred than Pepsi?

53

(a)………………………………………

(b)………………………………………

8. If mineral water jars are made available from Pepsi, would you like to purchase it?

(a)Yes (b) No

9.If canteen facility is not available, are there outlets available outside the company?

(a)Yes (b) No

10. If yes, what is the distance from the company?

(a) Just outside the company

(b) 100m away

(c) 500m or more

11. What are the major companies surrounding the outlet?

(a)………………………………………………

(b)……………………………………………...

(c)………………………………………………

12. What is the daily consumption of soft drinks?

(a) Pepsi………………………………….

(b) Coco Cola …………………………….

13. Complaints/suggestions if any.

(a)………………………………………………

(b)……………………………………………..

(c)……………………………………………..

FIRM: ……………................................................

ADD: ……………………………………………...

……………………………………………..

CONTACT PERSON: ……………………………

DESIGNATION: …………………………………

54

PHONE NO: ………………………………………

(b) For retail outlet:

I am a student of J.D.C. Bytco IMSR, Aurangabad conducting a survey on scope of Pepsi

and allied products for institutional sales in Aurangabad city.

1. Name of the store/hotel_______________________

2. Are Pepsi products available at the outlet?

(a)Yes (b) No

3. Which are the most popular Pepsi products?

(a)_____________________

(b)_____________________

4. What is the monthly sale of soft drinks at your outlet?

______________________________

5. What is Pepsi’s share? __________________________________

55

6. What is the time taken by the Pepsi distributor to execute the order?

______________________________________

7. Suggestions or complaints, if any

(a)________________________

(b)_______________________

(c)_______________________

NAME: ______________________

CONTACT NO: _______________

( c ) For Cidco area:

1. Name of the retail outlet: __________________________

2. Are Pepsi products available in your outlet?

(a) Yes (b) No

3. Are the following range of products of Pepsi available?

(a) Pepsi Cola’s________________

(b) Aquafina __________________

4. What is the combined stock of Pepsi Cola’s available (in crates)?

(a) 1- 10

(b) 10 – 20

(c) 20 and above

5. What is the stock of Aquafina ( in boxes)?

(a) 1 – 10

(b) 10 – 20

(c) 20 and above

6. Are Pepsi products available in your outlet?

(a) Yes (b) No

7. What is the stock of Coco- Cola brands?

56

(a) 1- 10

(b) 10 – 20

(c) 20 and above

8. Is VISI of Pepsi provided to your outlet?

(a) Yes (b) No

9. Are their any signage boards for Pepsi?

(a) Yes (b) No

10. If yes, what are the number of signage’s available?

11. Remarks/ Suggestion:_______________________________

BIBLIOGRAPHY

Marketing Management—Philip Kotler

Principles of Marketing-- Philip Kotler and Gary Armstrong

Distribution Management—S. Eliton

Marketing Reseach—R. Nargundkar

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