INTRODUCTION

Indian Beverages industry’s size is Rs. 8000 Crores and it is dominated by two

players viz PEPSI & Coke only. This high profile industry has lot of potential for growth

as per capita consumption in India is 9 bottles a year as compared to 20 bottles in Sri

Lanka, 14 in Pakistan, while 12 bottles a person in Nepal.

The RKJ group is India's leading supplier of retailer brand Carbonated and Non-

Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its

experience in the beverage industry dates back to the sixties when it had the first

franchise at Noida .

The family manufactures and markets Carbonated and Non-Carbonated Soft

Drinks and Mineral Water under PEPSI brand. The various flavors and sub-brands are

PEPSI, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, Slice

Orange, and Aquafina. It has the license to supply beverages in the territories of

Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of

Maharashtra, 13 districts of Karnataka and whole of Nepal. The group has in total 18

bottling plants in India & Nepal and is responsible for producing and marketing 44% of

PEPSI requirement in India.

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VARUN BEVERAGE TRADERS

With the urbanization in 1991, about 13 years after the exit of Coca-cola from Indian

scene an MNC (Multinational Company) globally known as PCI (Pepsi Cola

International) entered the Indian market with its name PFL (Pepsi Food Ltd.). It stated

bottling its product in UP, Delhi on 24th March 1991. Late D N Kamani installed this

very bottling unit in 1969. the company entered the soft drink with the introduction of

Coca-Cola and used to cater for the market of Bihar, Parts of Bengal, Orissa and Nepal.

The company was the pioneer of soft- d rinks in UP.

Due to urbanization and Behavioural changes the no. of soft drink consumers increase.

The Steel City Beverages Ltd. Delhi was unable to meet the dead of supply as per the

disability graph in Delhi due to this increase in the no. of consumers. To fulfill the

demand in that very region PFL established a plant in industrial area, .

It is one of those bottling unit of PFL, which comes under FOBO (Franchise Owned

Bottling Operation)

S.M.V. Beverage Pvt. Ltd, DAYALBAGH, (UP) a medium sector enterprise, located

amidst beautiful surroundings, on the DAYAL BAGH Area, and producing PEPSI range

of bottled soft drinks, word in the DEHLI.viz. Pepsi, 7 Up, Mirinda, Teem, Mirinda

Lemon, Mirinda Apple and Lehar Slice become a household and had

DEHLI was established in 1967 and production commenced in March 1969. At the very

outset the company installed state the art machines and technology, for the production

and bottling of soft drinks. The bottling plat with a capacity of produce bottle 220 per

minute is totally automatic and also had a modern state of the art inter mix machine for

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binging forth the right blend of flavors. The company continuous to adopt and innovate

technology in keeping with its policy of constant quality improvements. With the advent

Pepsi Food Limited for the production and sales of Pepsi range of soft drinks for Dehli.

The company symbolizes self reliant in technology and ranked as the Best bottling

company in the country in terms of Quality, Efficiency, Sale, Productivity and KRD. Till

1998, it was under the guidance of its Chairperson, Smt. Kusum Kamani and the able

stewardship of its Managing Director, Shri. Nakul Kamani, the Co. has consistently

bagged on numerous occasions, awards for Quality Assurance and Productivity, in 1993

it bagged top honors for being the best Quality conscious Plat amongst all Pepsi Bottling

companies in India. In March 1999, Steel City Beverages Ltd. was taken over by Mr. S.

K. Jaipuria from Mr. N.D. Kamani, along with Rushabh Marketing Ltd., a marketing

unit. Mr. S.K. Jaipuria started running this plant very successfully. He was very much

enthusiastic to increase the production and sale and to capture the whole market of

Dehli.He established another plant in the name of SMV Beverages (Jsr) and increased the

production from this new plant. The capacity of this new plant is 600 bottles per minute.

The Company’s highly sophisticated plant and quality control laboratory along with the

dedication and enterprise of its employees is more than evenly matched by the

management’s sense of understanding and compassion that states consumer soft drinks

market with an estimated growth annual turnover of over Rs. 10 corers. The company is

currently in pursuit of the coveted ISO9002, which it is confident of achieving and would

hence become the first food product factory in India to do so.has insured the company’s

progress with every passing day.

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PEPSICO COMPANY

PEPSICO is world leader in convenient foods & beverages, with high annually

turnover. The company consist of the snacks business of Frito-Lay North America &

the beverages & the foods business of PEPSICO beverages & foods , which

includes PEPSICO Beverages North America & Quaker Foods North America.

PEPSICO brands are available in nearly 200 countries & territories many of

PEPSICO brands names are over 100 year old, but the corporation is relatively

young. PEPSICO was founded in 1965 with the merger

of PEPSI-COLA & FRITO-LAY. Tropicana was

acquired in 1998 & PEPSICO merged with the

QUAKER OATS, including Gatorade in 2001.

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PEPSICO IN INDIA

Pepsico gained to India in 1988 by creating a joint venture with the Punjab government –

owned Punjab Agro Industrial Corporation (PAIC) AND Voltas India Limited .This joint

venture marketed and sold LEHAR Pepsi until1991,when the use of foreign brands was

allowed ; PepsiCo bought out its partners and ended the joint venture in 1994.Others

claim that firstly Pepsi was banned from import in India, in 1970 ,for having refused to

release the list of its ingredients and in 1993,the ban was lifted ,with Pepsi arriving on the

market shortly after wards .These controversies are a remainder of “India’s some times

acrimonious relationship with huge multinational companies. ” Indeed some argue that

PepsiCo and The Pepsi Co and Coca-Cola company have “been major in part because

they are well-known foreign companies that draw plenty of attention. ”

In 2003, the Center for Science and Environment (CSE ) ,a non –governmental

organization in New Delhi ,said aerated waters produced by soft drink manufacturers in

India ,including multinational giants PepsiCo and Coca Cola Company ,contained

toxins ,including DDT , malathion and chlorpyrifos –pesticides that can contribute to

cancer.

The Coca Cola Company and PepsiCo angrily denied allegation that their products

manufactured in India contained toxin level a far above the norms permitted in the

developed world .But an Indian parliamentary committee , in 2004 ,backed up CSE’s

findings and a government- appointed committee, is now trying to develop the world’s

first pesticides standards for soft drinks. On December 7,2004 ,India’s Supreme Court

ruled that both Pepsi Co and competitor the Coca-cola company must label all and bottles

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of the respective soft drinks with a consumer warning after tests showed unacceptable

levels of residual pesticides.

The Coca cola Company and Pepsi Co together hold 95% market share of soft –drink

sales in India.

In 2006,the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had

high levels of pesticides in their drinks .PepsiCo and The Coca –Cola Company maintain

that their drinks are safe for consumption and have published newspaper advertisements

that say pesticide level in their products are less than those in other foods such as

tea ,fruits and dairy products .In the Indian state of Kerala, sale and production of Pepsi-

cola ,along with other soft drinks, was banned by the state government in 2006,but this

waqs revised by the Kerala High Court merely a month later. Five other Indian states

have announced partial bans on the drinks in schools, colleges and hospitals

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CUSTOMERS OF PEPSICO

As we all know that PEPSI sell more than 1 billion drinks per day globally which shows

its huge customer base throughout the globe. In India, Pepsi have big market share where

it caters customer base of over 1 billion. Apart of end-consumer, Pepsi Company divides

its customer on the basis of different criteria which are as follows:

Distributors & Sub-Distributors

Channels

Volume

Income

Distributors & Sub-Distributors:

These are responsible for the distribution of drinks from bottling plant to different

channel or outlets through itself or sub-distributor.

Channels:

Company divides the channels in three segments according to the need of end-user which

are as follows:

Grocery outlets.

Convenience outlets.

E & D (Eating and Drinking) outlets.

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Volume:

These outlets categories according to VPO (Volume per outlet) of these outlets which are

as

Diamond (VPO greater than 800 case annually)

Gold (VPO between 500 to 799 case annually)

Silver (VPO between 200 to 499 case annually)

Bronze (VPO less than 200 case annually)

Income:

Consumer market clustered according to the income level of the locality which are as:

Higher Income Locality

Medium Income Locality

Lowest Income Locality

Professional (VISHWA)

PEPSICo’s success is the result of superior products , high standards of

performance , distinctive competitive strategies & high integrity of our people.

ENTRY OF PEPSICO IN INDIA

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In 1977, a change in the govt. at the center lead to the exit of COCA COLA

which is preferred to quit rather to dilute its equity to 40% in Compliance with the

Foreign Exchange Regulation Act( FERA).

The beginning of 80’s saw a birth of another cola drinks “Thums Up” in 1978 PEPSI

leads the Indian markets (share33%) with its Goldspot & Limca brands . In 1987 pure

drinks share came down to 21% a result of growing popularity of Limca & Thums

Up. At the same time the threat to the Indian soft drinks market was that of fruit drinks.

In 1988, fruit drinks market was valued at Rs.40crores & was growing at the

rate of2% . In year 1985, the government rejected a proposal with R.P.Goenka group.

This involved the export of fruit juice concentrates from Punjab in return for the import

of the cola concentrates .The deal offered was3:1 export - import ratio in return for being

allowed to market PEPSI in India.The Rs.22 crore PEPSICO project was the second bid

by the U.S. headquarter MNC to enter India. PEPSICO would have an equity holding of

39%, Punjab Agro Industries Ltd.(PAIC) 20% & Voltas24%.

PEPSI’s share which have been originally just under 40% was whittled to

about 35% & PAIC’s share was hiked to 40% these were mainly the in which COKE

had left India in1977.Thus PEPSI not only accepted the conditions but also went

much further . Finally their was a victory for PEPSI who after more than 5 years of

acrimonious battle was launched in June 1990 selectively in Rajasthan, Punjab, Uttar

Pradesh & South as a “LAHAR-PEPSI”.

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

the Indian customers& consumers. 1993 was a new beginning for fountain

PEPSI(PMX) .In 1994 PEPSI achieved the No.1 position in cola brands in India .In

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1996 the Mirinda attained the No.1 position in orange beverages category’s Mr.Ramesh

Vengal was the first Managing Director who was there till a April1992; Mr. Suman

Sinha the current president took over from him after a long inning with Hindustan Lever

Ltd (HUL).

COMPETITORS

Coca-Cola FLAVOUR

COLA FLAVORS

Cola is a most popular flavor in any group of age. This is the most saleable flavor

in the world. Both PEPSICO has its own cola flavor. PEPSICO has a cola flavor named

PEPSI. PEPSI COLA is a cash cow brand for the company in terms of sales revenue.

PEPSI has two competitive brands in the cola flavor.

PEPSI:

“LIME & LEMON FLAVORS”

This segment of flavor is very likely in the children and aged person. PEPSICO

has one brands. The PEPSI’s brands are MOUNTAIN DEW, MIRINDA LEMON and

7UP.

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MIRINDA LEMON is considered to be lemon in taste, comes under the category

of cloudy lemon because of its colour which is similar to that of clouds. It has to yield

good revenue.

MOUNTAIN DEW is sweet lemon soft drink in India and in a few countries. It is

mostly demands by the children.

7UP is lemon-lime soft drink. Sale of 7UP is third largest carbonated soft drink

brand in the U.S. most consumers prefer 7UP as a their favourite brand than any other

non-cola.

PEPSI:“ORANGE FLAVORS”

This is another type of flavor in the soft drink industry. The taste is like orange. In this

segment PEPSI has a brand named MIRINDA whether COCACOLA has its FANTA in

orange. This flavour is mostly preferred by children and women.PEPSI:

“MANGO FLAVORS”

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In this category’s of flavor is like a Mango. This flavor is now becoming more

popular in India. In Mango flavor PEPSI has a well known name SLICE whether

COCACOLA has a MAZAA in this segment.

PEPSI:

NEW BRANDS LAUNCHED BY

PEPSICO

7UP ICE:-

PEPSICO India recently launched a new flavour named “7UP ICE” in Indian

market. It is hard than 7UP. The taste of 7UP ICE is mint.

MIRINDA BAT BERRY: -

PEPSICO is recently launched MIRINDA BAT BERRY. The taste of MIRINDA BAT

BERRY is like Glicodin

COMPOSITION OF AD ON VARIOUS ASPECTS

Soft drinks is perhaps the most hard fought product categories in India in every

respect - media, events, distribution, pricing, communication, endorsements and so on

Every year it consistently emerges as one of the top 10 categories on television. We, at

AdEx India, have looked at year 2003 to understand the year that was for this

exceptionally competitive segment!

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One clear and predictable pattern in 2003 was the two clear peaks of ad spend -

one during the world cup and the other during the festive time. Interestingly, while Pepsi

dominated media budgets during World Cup, Coca-Cola seems to have been the

dominant spender in the month of September.

However, this time we at AdEx thought of dwelling on aspects of advertising in

terms of strategy adopted by the different players in this category and the duration of

advertising across genres on TV and press.

This paper tries to throw some light on the following aspects: -

channel wise advertising on TV

Advertising strategy adopted by the aerated soft drink players on TV and press

Zone wise and advertising on press

It is evident from the findings that feature film attract the customers most in term

of advertisement composition, the next important events are cricket matches , music

shows and dramas soaps.

Action thrillers, film trailers, from some other ten important composition from of

advertisement.

Mountain Dew

Mountain Dew, currently stylized predominantly as Mtn Dew, is a soft drink distributed

by PepsiCo, but remains its own brand. The formula was made and first marketed in

Marion, VA, Knoxville and Johnson City, Tennessee, USA through the 1940s, then in

Fayetteville, North Carolina by Barney and Ally Hartman. By 1964, it was being

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distributed across United States. The formula still used today was created by Bill

(William) Jones.

As of 2007, Mountain Dew was the 4th best selling carbonated soft drink in the United

States, behind Coca-Cola Classic, Pepsi-Cola, and Diet Coke. Mountain Dew's Diet

version ranked 9th in sales.

On October 15, 2008, Mountain Dew's official logo was redesigned to "Mtn Dew", as a

result of a PepsiCo rebranding of its core products.

Currently in the UK, a new drink called 'Mountain Dew Energy' has been introduced into

the energy drink market. Mountain Dew was previously marketed in the UK in 1995, with

a TV spot having the strapline "Wild colour, smooth taste." It was unsuccessful, and the

sale of Mountain Dew in the UK was discontinued (except for imports) by 1997.

Nutrition facts

Serving size 8 fl oz (240 mL)

Servings per container 1

Amount per serving

Calories 110 Calories from fat 0

% Daily value*

Total fat 0 g 0%

   Saturated fat 0 g 0%

   Trans fat 0 g

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Cholesterol 0 mg 0%

Sodium 40 mg 2%

Potassium 0 mg 0%

Total carbohydrate 31 g 10%

   Dietary fiber 0 g 0%

   Sugars 31 g

Protein 0 g

Vitamin A 0%      Vitamin C 0%

Calcium 0%      Iron 0%

*Percent daily values are based on a 2,000-calorie diet. Your daily values may be higher or lower depending on your calorie needs.

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HISTORY

7 Up was created by Charles Leiper Grigg who launched his St. Louis-based company

The Howdy Corporation in 1920. Grigg came up with the formula for a lemon-lime soft

drink in 1929. The product, originally named "Bib-Label Lithiated Lemon-Lime Soda",

was launched two weeks before the Wall Street Crash of 1929. It contained lithium

citrate, a mood-stabilizing drug. It was one of a number of patent medicine products

popular in the late-19th and early-20th centuries. Specifically it was marketed as a

hangover cure.

Philip Morris bought 7 Up in 1978, and sold it in 1986, to a group led by the investment

firm Hicks & Haas. 7 Up merged with Dr Pepper in 1988; Cadbury Schweppes bought

the combined company in 1995. The Dr Pepper Snapple Group was spun off from

Cadbury Schweppes in 2008.

Formula

7 Up has been reformulated several times since its launch in 1929. In 2006, the version of

the product sold in the U.S. was re-formulated so that it could be marketed as being

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"100% Natural". This was achieved by eliminating the preservative calcium disodium

EDTA, and replacing sodium citrate with potassium citrate in order to reduce the

beverage's sodium content. This re-formulation contains no fruit juice and is still

sweetened with high-fructose corn syrup (HFCS). The manufacturing process used in the

production of HFCS has led some public health and advocacy groups to challenge the ad

campaign's "natural" claims. In 2007, after the Center for Science in the Public Interest

threatened to sue 7 Up, it was announced that 7 Up would stop being marketed as "100%

natural". Instead, It is now promoted as having "100% Natural Flavors". The controversy

does not extend to other countries, such as the United Kingdom, where the high fructose

corn syrup is not generally used in foods, including 7 Up. 7 Up is a common folk remedy,

for example relieving stomach aches.

There exists a myth that the 7 Up name comes from the "fact" of the drink having a pH

over 7. That would make it neutral or alkaline on the scale; however, this is not the case,

as the 7 Up ph is close to 3.79, similar to other drinks of the type.

Variations

Diet 7 Up

Originally introduced in 1963 as Like[ (not to be confused with 7 Up's Like Cola from

the 1980s), it was discontinued in 1969 due to the U.S. government ban of cyclamate

sweetener. After reformulation, it was reintroduced as Diet 7 Up in 1970. It was renamed

Sugar Free 7 Up in 1973 then back to Diet 7 Up in 1979. Diet 7 Up has also been

reformulated recently where it was packaged and advertised as now made with Splenda

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sweetener (sucralose) but now the formula has been re-tooled and lists the following

ingredients: filtered carbonated water, natural flavors, citric acid, potassium citrate,

potassium benzoate, aspartame, acesulfame potassium, calcium disodium EDTA. The

ingredients for Diet 7 Up with Splenda are listed: filtered carbonated water, natural

flavors, citric acid, potassium citrate, potassium benzoate, calcium disodium EDTA,

acesulfame potassium, sucralose.[11] The 7 Up company claims they switched back to

aspartame because they conducted a nation-wide study showing that people preferred the

'aspartame taste' over the taste of Splenda-brand Sweetener. 7 Up Plus is still sweetened

with Splenda, and they announce no intention of switching it to aspartame.

Cherry 7 Up

Cherry 7 Up flavor, with these ingredients listed: Carbonated water, high fructose corn

syrup, citric acid, natural and artificial flavors, potassium benzoate, red 40. One known

ingredient that falls under "natural and artificial flavors" is apple juice.

Raspberry 7 Up

This flavor was available for a short time in Norway, Denmark (and possibly other

European countries) during the late 80s. It was released at the same time as Orange 7 Up.

It was a clear colored lemon, lime and raspberry flavoured soft-drink. It was pulled off

the market after 2–3 years.

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7 Up briefly sponsored the Jordan Formula One team in their first year during the

1991 season.

You Like It, It Likes You (1936)

The Fresh Up Family Drink (1952)

Fresh up with 7 Up (1957)

Nothing does it like 7 Up! (1958)

Get real action, 7 Up your thirst away (1963–1964)

Wet 'n' Wild (1965, 1966)

The (Diet) Uncola. (1967-1990s) (some with charismatic actor Geoffrey Holder)

Crisp refreshing 7 Up (1960s-1970s)

It's 7 Up, it's Uncola (1975)

UNdo it with 7 Up (1977–78)

America is turning 7 Up (1978–79)

Feelin' 7 Up (1980)

Canada's turning 7 Up (1980) Canada

7 Up, The Difference is Clear (1982)

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Never Had It, Never Will (1980s, reference to 7 Up not containing caffeine)

The feeling of Christmas. (December 1980s)

Put some Un in your life (diet). (early 1990s)

When you want the taste of UN, there's only one (early 1990s, used concurrently

with previous slogan)

On the spot. (late 1980s - early 1990s)

Now that's refreshing. (1990s)

It's cool to be clear - 7 Up (early 1990s)

6 Up was not enough. We went one louder. (1994)

It's an up thing. (1995)

Make 7 Up Yours. (1999)

Are you an Un? (Late 1990s-Early 2000s)

Seven flavors in one drink. (2008)

"Bheja fry .. 7 Up try" (2008)

"It's way more better than cola, it's 7 Up (Secondary Slogan used with Richard

Karn to promote summer 7 Up commercials)

Ridiculously Bubbly. (2010, in spots with Brad Garrett) Fresh-Up Freddie in

person.

In conjunction with the 1999 marketing slogan "Make 7 Up Yours," 7 Up distributed

shirts that said "Make Seven" on the front and "Up Yours" on the back. Television and

radio ads featured Orlando Jones walking down a street talking about 7 Up with people

seemingly angry or shocked by the risqué phrase "up yours". The ads and slogan quickly

became popular, and the campaign lasted until 2005.[citation needed]

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The television cartoon character Fido Dido was used as a mascot from the late 1980s

through the early 1990s, and was re-introduced in international markets in the early

2000s.

Fresh-Up Freddie was the rooster mascot for 7 Up in 1950s. He gave viewers lessons

about how to plan successful parties and picnics by having a plenty of 7 Up on hand. The

commercials were produced by Disney, giving the character that specific Disney look of

the time. Freddie was a crossover between Panchito rooster from The Three Caballeros

and zany Aracuan Bird from the same film. Fresh-Up Freddie often was dressed in

human clothes. Freddie also appeared in Zorro 1957 series commercial intermissions.

Here, he was put against Pete the Cat. Fresh-Up Freddie also had a minor merchandise of

his own. He was voiced by Paul Frees.

just two years. The new design, which features yet another new revision of the main

Sprite logo, bears much resemblance to the 1994 revamp. Sprite Zero bottles from this

era feature grey packaging, a first for the brand.

In the UK, it is recognized by its slogan "Get the Right Sprite," based on ads containing

an alternate sprite, a green sickly goblin that causes irritation and trouble to those who

acquire it accidentally.

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Brand Portfolio

Name Launched Discontinued Notes

Sprite

Zero

1974 This sugar-free version was originally produced in

the United States as "Sugar Free Sprite" in 1974,

then was renamed to "Diet Sprite" in 1983. In

other countries, it was known as "Sprite Light." In

September 2004, it was rebranded as "Diet Sprite

Zero." Since then, it has become "Sprite Zero

(Sprite Z)" in Argentina, Australia, Bolivia, Brazil,

Chile, mainland China, Europe, Paraguay, Peru,

Uruguay, and New Zealand. "Diet" was dropped

from the product's name, to become simply "Sprite

Zero," when new logos debuted in June 2006. The

"Zero" designation for low-calorie sodas from the

Coca-Cola Company was first used on Diet Sprite

Zero before being used on the flagship Zero

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product, Coca-Cola Zero.

Sprite

Ice2002

A mint-flavored Sprite that made its debut in

Korea in 2002 as "Sprite Blue," "Sprite Ice" in

Canada, and '"Sprite Ice Cube" in Belgium in

2003. "Sprite Ice Blue" was introduced in Italy,

Taiwan, and mainland China in 2004, and in Chile

in the summer of 2005. There is also "Sprite

Lemon Lime Mint."

Sprite

Super

Lemon

2003 Introduced in Hong Kong in 2003

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Pepsi

This article is about the beverage. For its manufacturer, see PepsiCo. For the singer, see

Pepsi Demacque.

Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was

first made in the 1890s by pharmacist Caleb Davis Bradham in New Bern, North

Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi

variants produced over the years since 1898.

Origins

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The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a New Bern

exhibition in the Historical Museum of Bern.

It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb

Bradham, who made it at his pharmacy where the drink was sold. It was later named

Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the recipe.

[1] Bradham sought to create a fountain drink that was delicious and would aid in

digestion and boost energy.

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented

warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was

sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race

pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A

bully drink...refreshing, invigorating, a fine bracer before a race". The advertising theme

"Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi

received its first logo redesign since the original design of 1905. In 1929, the logo was

changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered

bankruptcy - in large part due to financial losses incurred by speculating on wildly

fluctuating sugar prices as a result of World War I. Assets were sold and Roy C.

Megargel bought the Pepsi trademark. Eight years later, the company went bankrupt

again. Pepsi's assets were then purchased by Charles Guth, the President of Loft Inc. Loft

was a candy manufacturer with retail stores that contained soda fountains. He sought to

replace Coca-Cola at his stores' fountains after Coke refused to give him a discount on

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syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula. I love

Pepsi so much that I wish I could have sex with it.

On three separate occasions between 1922 and 1933, the Coca-Cola Company was

offered the opportunity to purchase the Pepsi-Cola company and it declined on each

occasion.

Pepsi-Cola trademark

The original stylized Pepsi-Cola logo

The second stylized Pepsi-Colalogo

The original trademark application for Pepsi-Cola was filed on September 23, 1902 with

registration approved on June 16, 1903. In the application's statement, Caleb Bradham

describes the trademark as an, "arbitrary hyphenated word "PEPSI-COLA," and indicated

that the mark was in continuous use for his business since August 1, 1901. The Pepsi-

Cola's description is a flavoring-syrup for soda water. The trademark expired on April 15,

1994.

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A second Pepsi-Cola trademark is on record with the USPTO. The application date

submitted by Caleb Bradham for the second trademark is Saturday, April 15, 1905 with

the successful registration date of April 15, 1906, over three years after the original date.

Curiously, in this application, Caleb Bradham states that the trademark had been

continuously used in his business "and those from whom title is derived since February

15, 1896." While Pepsi-Cola was filed in the same category of personal and legal and

social services in both applications, in the 1905 application the description submitted to

the USPTO was for a tonic beverage. The federal status for the 1905 trademark is

registered and renewed and is owned by Pepsico, Inc. of Purchase, New York.

Rise

During the Great Depression, Pepsi gained popularity following the introduction in 1936

of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was

slashed to five cents, sales increased substantially. With a radio advertising campaign

featuring the jingle "Pepsi-Cola hits the spot / Twelve full ounces, that's a lot / Twice as

much for a nickel, too / Pepsi-Cola is the drink for you," arranged in such a way that the

jingle never ends. Pepsi encouraged price-watching consumers to switch, obliquely

referring to the Coca-Cola standard of six ounces per bottle for the price of five cents (a

nickel), instead of the 12 ounces Pepsi sold at the same price. Coming at a time of

economic crisis, the campaign succeeded in boosting Pepsi's status. From 1936 to 1938,

Pepsi-Cola's profits doubled.

Pepsi's success under Guth came while the Loft Candy business was faltering. Since he

had initially used Loft's finances and facilities to establish the new Pepsi success, the

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near-bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A

long legal battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme

Court and ultimately ending in a loss for Guth.

RESEARCH METHODOLOGY

Methodology, for a study like this is the most important part. The method of study

adopted by me is totally is to increase & to gather the more information regarding this

project.

The major emphasis in such studies is on the discovery of the ideas & fruitful

relevant information. As such the research design appropriate for such studies must be

flexible enough to provide opportunity for considering different aspects of a problem

under study.

METHODS OF DATA COLLECTION:

PRIMARY DATA:

Survey method -- This method was adopted because it helped in securing detail

information from a sample of respondents. The information received from the

respondents is recorded on a form called the questionnaire. This is only method to

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measure attitude & motivation directly. Open framed discussion with managers.

SECONDARY DATA:

I have also used the secondary data, which included the written document of the

organization & other places.

HEAD OFFICE (VBL)

INTERNET

PAPERS & RECORDS

The data collected from the above mentioned sources helped me in getting

information about the brief history of PEPSICo

SAMPLING PLAN:

Target population : Retailer’s of the area of

Or Universe khandari,

Agra

Sampling Size : 100

Sampling Method : Simple Random Sampling

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Area of Survey : Agra region

SIGNIFICANCE OF THE TOPIC

To determine the sales of DEW, 7UP, SPRITE brands in total soft drink sales at

Agra.

To ensure optimum use of existing sales efforts.

Find out that point in which company should improve itself rather than coke.

To link the comparative analysis with organizational planning.

To provide a basis for the sales improvement programme.

It is widely accepted that theory broadens ones thinking & helps in idea generation. But

practical & practices indicates the feasibility of their ideas & how far theory can be

applied in a situation successfully.

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OBJECTIVE OF THE STUDY

To know the consumption rate of green glasses.

TO know that which green glass product is mostly liked.

To know the costumer demand in green glasses dew, 7up, sprite.

To know the comparison between tow companies pepsi & cocacola

To know the sale of green glasses.

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“EMPLOYEE RETENTION”

The picture states the latest statement that corporate believes in “Love them or Lose them”

Employee Retention involves taking measures to encourage employees to remain

in the organization for the maximum period of time. Corporate is facing a lot of problems

in employee retention these days. Hiring knowledgeable people for the job is essential for

an employer. But retention is even more important than hiring. There is no dearth of

opportunities for a talented person. There are many organizations which are looking for

such employees. If a person is not satisfied by the job he’s doing, he may switch over to

some other more suitable job.

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In today’s environment it becomes very important for organizations to retain their

employees. The top organizations are on the top because they value their employees and

they know how to keep them glued to the organization. Employees stay and leave

organizations for some reasons. The reason may be personal or professional. These

reasons should be understood by the employer and should be taken care of. The

organizations are becoming aware of these reasons and adopting many strategies for

employee retention.

Employees today are different. They are not the ones who don’t have good

opportunities in hand. As soon as they feel dissatisfied with the current employer or the

job, they switch over to the next job. It is the responsibility of the employer to retain their

best employees. If they don’t, they would be left with no good employees. A good

employer should know how to attract and retain its employees. Retention involves five

major things:

                                             

  <<Compensation>>                        <<Environment>>                        <<Growth>>

       

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                 <<Relationship>>                                                       <<Support>>

Employee retention would require a lot of efforts, energy, and resources but the results

are worth it.

Compensation

Compensation constitutes the largest part of the retention process. The employees always

have high expectations regarding their compensation packages. Compensation packages

vary from industry to industry. So an attractive compensation package plays a critical role

in retaining the employees.

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Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options,

bonuses, vacations, etc. While setting up the packages, the following components should

be kept in mind:

Salary and monthly wage: It is the biggest component of the compensation package. It

is also the most common factor of comparison among employees. It includes

o Basic wage

o House rent allowance

o Dearness allowance

o City compensatory allowance

                     

Salary and wages represent the level of skill and experience an individual has. Time to

time increase in the salaries and wages of employees should be done. And this increase

should be based on the employee’s performance and his contribution to the organization.

Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.

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Economic benefits: It includes paid holidays, leave travel concession, etc.

Long-term incentives: Long term incentives include stock options or stock grants. These

incentives help retain employees in the organization's startup stage.

Health insurance: Health insurance is a great benefit to the employees. It saves

employees money as well as gives them a peace of mind that they have somebody to take

care of them in bad times. It also shows the employee that the organization cares about

the employee and its family.

After retirement: It includes payments that an Employee gets after he retires like EPF

(Employee Provident Fund) etc.

Miscellaneous compensation: It may include employee assistance programs (like

psychological counseling, legal assistance etc), discounts on company products, use of a

company cars, etc.

Growth and Career

Growth and development are the integral part of every individual’s career. If an employee

can not foresee his path of career development in his current organization, there are

chances that he’ll leave the organization as soon as he gets an opportunity.

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The important factors in employee growth that an employee looks for himself are:

Work profile: The work profile on which the employee is working should be in sync

with his capabilities. The profile should not be too low or too high.

Personal growth and dreams: Employees responsibilities in the organization should

help him achieve his personal goals also. Organizations can not keep aside the individual

goals of employees and foster organizations goals. Employees’ priority is to work for

themselves and later on comes the organization. If he’s not satisfied with his growth, he’ll

not be able to contribute in organization growth.

Training and development: Employees should be trained and given chance to improve

and enhance their skills. Many employers fear that if the employees are well rained,

they’ll leave the organization for better jobs. Organization should not limit the resources

on which organization’s success depends. These trainings can be given to improve many

skills like:

Communications skills

Technical skills

In-house processes and procedures improvement related skills

C or customer satisfaction related skills

Special project related skills

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Need for such trainings can be recognized from individual performance reviews,

individual meetings, employee satisfaction surveys and by being in constant touch with

the employees.

Support

Lack of support from management can sometimes serve as a reason for employee

retention. Supervisor should support his subordinates in a way so that each one of them is

a success. Management should try to focus on its employees and support them not only in

their difficult times at work but also through the times of personal crisis. Management

can support employees by providing them recognition and appreciation.

Employers can also provide valuable feedback to employees and make them feel valued

to the organization.

The feedback from supervisor helps the employee to feel more responsible, confident and

empowered. Top management can also support its employees in their personal crisis by

providing personal loans during emergencies, childcare services, employee assistance

programs, counseling services.

Employers can also support their employees by creating an environment of trust and

inculcating the organizational values into employees. Thus employers can support their

employees in a number of ways as follows:

By providing feedback

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By giving recognition and rewards

By counseling them

By providing emotional support

Importance of Relationship in Employee Retention Program

Sometimes the relationship with the management and the peers becomes the reason for an

employee to leave the organization. The management is sometimes not able to provide an

employee a supportive work culture and environment in terms of personal or professional

relationships. There are times when an employee starts feeling bitterness towards the

management or peers. This bitterness could be due to many reasons. This decreases

employee’s interest and he becomes de-motivated. It leads to less satisfaction and

eventually attrition.

A supportive work culture helps grow employee professionally and boosts employee

satisfaction. To enhance good professional relationships at work, the management should

keep the following points in mind.

Respect for the individual: Respect for the individual is the must in the organization.

Relationship with the immediate manager: A manger plays the role of a mentor and a

coach. He designs ands plans work for each employee. It is his duty to involve the

employee in the processes of the organization. So an organization should hire managers

who can make and maintain good relations with their subordinates.

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Relationship with colleagues: Promote team work, not only among teams but in

different departments as well. This will induce competition as well as improve the

relationships among colleagues.

Recruit whole heartedly: An employee should be recruited if there is a proper place and

duties for him to perform. Otherwise he’ll feel useless and will be dissatisfied.

Employees should know what the organization expects from them and what their

expectation from the organization is. Deliver what is promised.

Promote an employee based culture: The employee should know that the organization

is there to support him at the time of need. Show them that the organization cares and

he’ll show the same for the organization. An employee based culture may include

decision making authority, availability of resources, open door policy, etc.

Individual development: Taking proper care of employees includes acknowledgement

to the employee’s dreams and personal goals. Create opportunities for their career growth

by providing mentorship programs, certifications, educational courses, etc.

Induce loyalty: Organizations should be loyal as well as they should promote loyalty in

the employees too. Try to make the current employees stay instead of recruiting new

ones.

Organization Environment

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It is not about managing retention. It is about managing people. If an organization

manages people well, retention will take care of itself. Organizations should focus on

managing the work environment to make better use of the available human assets.

People want to work for an organization which provides

Appreciation for the work done

Ample opportunities to grow

A friendly and cooperative environment

A feeling that the organization is second home to the employee

Organization environment includes

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies

Trust

Types of environment the employee needs in an organization

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Learning environment: It includes continuous learning and improvement of the

individual, certifications and provision for higher studies, etc.

Support environment: Organization can provide support in the form of work-life

balance. Work life balance includes:

o Flexible hours

o Telecommuting

o Dependent care

o Alternate work schedules

o Vacations

o Wellness

Work environment: It includes efficient managers, supportive co-workers,

challenging work, involvement in decision-making, clarity of work and

responsibilities, and recognition.

Lack or absence of such environment pushes employees to look for new opportunities.

The environment should be such that the employee feels connected to the organization in

every respect.

Importance Of Employee Retention

The process of retention will benefit an organization in the following ways:

1. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of

money to a company's expenses. While it is difficult to fully calculate the cost of turnover

(including hiring costs, training costs and productivity loss), industry experts often quote

25% of the average employee salary as a conservative estimate.

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2. Loss of Company Knowledge: When an employee leaves, he takes with him

valuable knowledge about the company, customers, current projects and past

history (sometimes to competitors). Often much time and money has been spent

on the employee in expectation of a future return. When the employee leaves, the

investment is not realized.

3. Interruption of Customer Service: Customers and clients do business with a

company in part because of the people. Relationships are developed that

encourage continued sponsorship of the business. When an employee leaves, the

relationships that employee built for the company are severed, which could lead

to potential customer loss.

4. Turnover leads to more turnovers: When an employee terminates, the effect is

felt throughout the organization. Co-workers are often required to pick up the

slack. The unspoken negativity often intensifies for the remaining staff.

5. Goodwill of the company: The goodwill of a company is maintained when the

attrition rates are low. Higher retention rates motivate potential employees to join

the organization.

6. Regaining efficiency: If an employee resigns, then good amount of time is lost in

hiring a new employee and then training him/her and this goes to the loss of the

company directly which many a times goes unnoticed. And even after this you

cannot assure us of the same efficiency from the new employee.

Employee Retention Strategies

The basic practices which should be kept in mind in the employee retention strategies are:

1. Hire the right people in the first place.

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2. Empower the employees: Give the employees the authority to get things done.

3. Make employees realize that they are the most valuable asset of the organization.

4. Have faith in them, trust them and respect them.

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels: Low, medium and high level.

             <Low>                               <Medium >                               <High> What Makes Employee Leave?

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Employees do not leave an organization without any significant reason. There are certain

circumstances that lead to their leaving the organization. The most common reasons can

be:

Job is not what the employee expected to be: Sometimes the job responsibilities

don’t come out to be same as expected by the candidates. Unexpected job responsibilities

lead to job dissatisfaction.

Job and person mismatch: A candidate may be fit to do a certain type of job which

matches his personality. If he is given a job

which mismatches his personality, then he won’t be able to perform it well and will try to

find out reasons to leave the job.

No growth opportunities: No or less learning and growth opportunities in the

current job will make candidate’s job and career stagnant.

Lack of appreciation: If the work is not appreciated by the supervisor, the

employee feels de-motivated and loses interest in job.

Lack of trust and support in coworkers, seniors and management: Trust is the

most important factor that is required for an individual to stay in the job. Non-

supportive coworkers, seniors and management can make office environment

unfriendly and difficult to work in.

Stress from overwork and work life imbalance: Job stress can lead to work life

imbalance which ultimately many times lead to employee leaving the

organization.

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Compensation: Better compensation packages being offered by other companies

may attract employees towards themselves.

New job offer: An attractive job offer which an employee thinks is good for him

with respect to job responsibility, compensation, growth and learning etc. can lead

an employee to leave the organization.

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“PERFORMANCE APPRAISAL”

People differ in their abilities and their aptitudes. There is always some difference

between the quality and quantity of the same work on the same job being done by two

different people. Therefore, performance management and performance appraisal is

necessary to understand each employee’s abilities, competencies and relative merit and

worth for the organization. Performance appraisal rates the employees in terms of their

performance.

Performance appraisals are widely used in the society. The history of performance

appraisal can be dated back to the 20th century and then to the second world war when

the merit rating was used for the first time. An employer evaluating their employees is a

very old concept. Performance appraisals are an indispensable part of performance

measurement.

Performance appraisal is necessary to measure the performance of the employees

and the organization to check the progress towards the desired goals and aims.

Performance appraisal takes into account the past performance of the employees

and focuses on the improvement of the future performance of the employees.

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CONTENTS OF PERFORMANCE APPRAISAL FORM:

1. Quality of work

• Consider accuracy, thoroughness, effectiveness.

• Pressure, ability to meet standards of quality.

• Use of time and volume of work accomplished.

• Work output matches the expectations established.

2. Quantity of work

• Competence, thoroughness, and efficiency of work regardless of volume.

• Neatness and accuracy.

3. Teamwork:

• Establish and maintain effective working relationship with others.

• Shares information and resources with others

• Follows instructions of supervisor and respond to requests from others in the team in a

helpful manner.

• Contributing work and effort to group performance to meet agreed upon objectives and

achieve team success

4. Job knowledge

• Application of appropriate level of technical and procedural knowledge in specific field

• Degree of technical competence

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• Understanding of job procedures, methods, facts and information related to

assignments.

• Perform duties with minimal supervision but seek guidance where and when

appropriate to the job, consults the appropriate staff

5. Initiative

• Consider the extent to which the employees sets own constructive work practice and

recommends and creates own procedures.

• Self-starter, develop and implement new methods, procedures, solutions, concepts,

designs and/or applications of existing designs or procedures.

• Accepts additional challenges and responsibilities and willingly assist others, self-

reliant.

• Completes assignment on time.

6. Interpersonal relations

• Consider the extent to which the employee is cooperative, considerate, and tactful in

dealing with supervisors, subordinates, peers, faculty, students and others.

7. Health and safety compliance

• The degree to which he or she complies with or over sees the compliance with

university safety rules.

• The following are also to be completed for supervisory personnel and members of the

administrative staff.

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8. Communications abilities

Performance appraisal of communications includes elements as:

• Ability to listen and understand information;

• Presents information in a clear and concise manner.

• Knows appropriate way of communicating with immediate superiors and the

management

• Demonstrates respect for all individuals in all forms of communication

• Regardless of their background or culture;

9. Planning and organizing:

• Adapting to changes and using resources effectively;

• Maintains confidentiality as appropriate.

• Setting objectives, establishing priorities, developing plans;

• Arranging work schedules and prioritizing work to meet deadlines.

• Know when to ask for clarification before proceeding on a work project.

10. Problem analysis and decision making

• Anticipating problems and facilitate problem resolution.

• Willingness to make necessary and immediate decisions given incomplete information.

• Understanding practical and workable solutions.

• Recognizing when a decision is necessary, asking for input, making decisions and

providing information and feedback in a timely manner.

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11. Staff development

• The extent to which the individual provides guidance and opportunities to his or her

staff for their development and advancement in the university.

12. Dependability

Performance appraisal of dependability includes elements as:

• Consider the extent to which the employee completes assignments on time and carries

out instructions.

• Starts work at appropriate time;

• Respects time allowed for breaks and lunch;

• Follows policies for requesting and reporting time off;

• Helps ensure work duties are covered when absent;

• Employee’s presence can be relied upon for planning purposes.

• Attendance and punctuality meets supervisor’s requirements.

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Process of Performance Appraisal

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the

standards which will be used to as the base to compare the actual performance of the

employees. This step requires setting the criteria to judge the performance of the

employees as successful or unsuccessful and the degrees of their contribution to the

organizational goals and objectives. The standards set should be clear, easily

understandable and in measurable terms. In case the performance of the employee cannot

be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards

to all the employees of the organization. The employees should be informed and the

standards should be clearly explained to the. This will help them to understand their roles

and to know what exactly is expected from them. The standards should also be

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communicated to the appraisers or the evaluators and if required, the standards can also

be modified at this stage itself according to the relevant feedback from the employees or

the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the performance appraisal process is measuring the actual

performance of the employees that is the work done by the employees during the

specified period of time. It is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful selection of the

appropriate techniques of measurement, taking care that personal bias does not affect the

outcome of the process and providing assistance rather than interfering in an employees

work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance.

The comparison tells the deviations in the performance of the employees from the

standards set. The result can show the actual performance being more than the desired

performance or, the actual performance being less than the desired performance depicting

a negative deviation in the organizational performance. It includes recalling, evaluating

and analysis of data related to the employees’ performance.

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DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on

one-to-one basis. The focus of this discussion is on communication and listening. The

results, the problems and the possible solutions are discussed with the aim of problem

solving and reaching consensus. The feedback should be given with a positive attitude as

this can have an effect on the employees’ future performance. The purpose of the meeting

should be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective actions, or the

related HR decisions like rewards, promotions, demotions, transfers etc.

Purpose of Performance Appraisal

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

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To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

According to a recent survey, the percentage of organizations (out of the total

organizations surveyed i.e. 50) using performance appraisal for the various purposes are

as shown in the diagram:

The most significant reasons of using Performance Appraisal are:

Making payroll and compensation decisions – 80%

Training and development needs – 71% Identifying the gaps in desired and actual performance and its cause – 76

OBJECTIVES OF PERFORMANCE APPRAISAL:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance. To help the management in exercising organizational control.

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Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the organization.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

Approaches to Performance Development

Performance appraisal - Traditional approach

Traditionally, performance appraisal has been used as just a method for

determining and justifying the salaries of the employees. Then it began to be used a

tool for determining rewards (a rise in the pay) and punishments (a cut in the pay)

for the past performance of the employees.

This approach was a past oriented approach which focused only on the past

performance of the employees i.e. during a past specified period of time. This

approach did not consider the developmental aspects of the employee performance

i.e. his training and development needs or career developmental possibilities. The

primary concern of the traditional approach is to judge the performance of the

organization as a whole by the past performances of its employees. Therefore, this

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approach is also called as the overall approach. In 1950s the performance appraisal

was recognized as a complete system in itself and the Modern Approach to

performance appraisal was developed.

Performance appraisal - Modern approach

The modern approach to performance development has made the

performance appraisal process more formal and structured. Now, the performance

appraisal is taken as a tool to identify better performing employees from others,

employees’ training needs, career development paths, rewards and bonuses and

their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations.

The results of performance appraisals are used to take various other HR decisions

like promotions, demotions, transfers, training and development, reward outcomes.

The modern approach to performance appraisals includes a feedback process that

helps to strengthen the relationships between superiors and subordinates and

improve communication throughout the organization.

The modern approach to performance appraisal is a future oriented approach

and is developmental in nature. This recognizes employees as individuals and

focuses on their development.

Techniques Of Performance Appraisal

The various methods and techniques used for performance appraisal can be

categorized as the following traditional and modern methods:

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A) Traditional Methods of Performance Appraisal

1. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as “Free Form method”

involves a description of the performance of an employee by his superior. The

description is an evaluation of the performance of any individual based on the facts

and often includes examples and evidences to support the information. A major

drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD

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This is one of the oldest and simplest techniques of performance appraisal.

In this method, the appraiser ranks the employees from the best to the poorest on the

basis of their overall performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this

method compares each employee with all others in the group, one at a time. After all

the comparisons on the basis of the overall comparisons, the employees are given the

final rankings.

4. CRITICAL INCIDENTS METHODS

In this method of performance appraisal, the evaluator rates the employee on

the basis of critical events and how the employee behaved during those incidents. It

includes both negative and positive points. The drawback of this method is that the

supervisor has to note down the critical incidents and the employee behavior as and

when they occur.

5. FIELD REVIEW

In this method, a senior member of the HR department or a training officer

discusses and interviews the supervisors to evaluate and rate their respective

subordinates. A major drawback of this method is that it is a very time consuming

method. But this method helps to reduce the superiors’ personal bias.

6. CHECKLIST METHOD

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The rater is given a checklist of the descriptions of the behavior of the

employees on job. The checklist contains a list of statements on the basis of which the

rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALE

In this method, an employee’s quality and quantity of work is assessed in a

graphic scale indicating different degrees of a particular trait. The factors taken into

consideration include both the personal characteristics and characteristics related to

the on-the-job performance of the employees. For example a trait like Job Knowledge

may be judged on the range of average, above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION

To eliminate the element of bias from the rater’s ratings, the evaluator is

asked to distribute the employees in some fixed categories of ratings like on a normal

distribution curve. The rater chooses the appropriate fit for the categories on his own

discretion.

B) Modern-Method

1. MANAGEMENT BY OBJECTIVES

The concept of ‘Management by Objectives’ (MBO) was first given by

Peter Drucker in 1954. It can be defined as a process whereby the employees and the

superiors come together to identify common goals, the employees set their goals to be

achieved, the standards to be taken as the criteria for measurement of their performance

and contribution and deciding the course of action to be followed.

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The essence of MBO is participative goal setting, choosing course of actions and

decision making. An important part of the MBO is the measurement and the comparison

of the employee’s actual performance with the standards set. Ideally, when employees

themselves have been involved with the goal setting and the choosing the course of action

to be followed by them, they are more likely to fulfill their responsibilities.

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered

employees who have clarity of the roles and responsibilities expected from them,

understand their objectives to be achieved and thus help in the achievement of

organizational as well as personal goals.

Some of the important features and advantages of MBO are:

Clarity of goals – With MBO, came the concept of SMART goals i.e. goals

that are:

Specific

Measurable

Achievable

Realistic,

Time bound.

The goals thus set are clear, motivating and there is a linkage between

organizational goals and performance targets of the employees.

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The focus is on future rather than on past. Goals and standards are set for the

performance for the future with periodic reviews and feedback.

Motivation – Involving employees in the whole process of goal setting and

increasing employee empowerment increases employee job satisfaction and

commitment.

Better communication and Coordination – Frequent reviews and interactions

between superiors and subordinates helps to maintain harmonious

relationships within the enterprise and also solve many problems faced during

the period.

2. 360-DEGREE-PERFORMANCE-APPRAISAL METHOD

360 degree feedback, also known as 'multi-rater feedback', is the most

comprehensive appraisal where the feedback about the employees’ performance comes

from all the sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e.

superior), subordinates, team members, customers, suppliers/ vendors - anyone who

comes into contact with the employee and can provide valuable insights and information

or feedback regarding the “on-the-job” performance of the employee.

360 degree appraisal has four integral components:

1. Self appraisal

2. Superior’s appraisal

3. Subordinate’s appraisal

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4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and

weaknesses, his achievements, and judge his own performance. Superior’s appraisal

forms the traditional part of the 360 degree appraisal where the employees’

responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters

like communication and motivating abilities, superior’s ability to delegate the work,

leadership qualities etc. Also known as internal customers, the correct feedback given by

peers can help to find employees’ abilities to work in a team, co-operation and sensitivity

towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore

360 degree appraisals have high employee involvement and also have the strongest

impact on behavior and performance. It provides a "360-degree review" of the

employees’ performance and is considered to be one of the most credible performance

appraisal methods.

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360 degree appraisal is also a powerful developmental tool because when

conducted at regular intervals (say yearly) it helps to keep a track of the changes others’

perceptions about the employees. A 360 degree appraisal is generally found more suitable

for the managers as it helps to assess their leadership and managing styles. This technique

is being effectively used across the globe for performance appraisals. Some of the

organizations following it are Wipro, Infosys, and Reliance Industries etc.

Arguments Against 360 Degree Performance Appraisal

Despite the fact that 360 degree appraisals are being widely used throughout the

world for appraising the performance of the employees at all levels, many HR experts

and professionals argument against using the technique of 360 degree appraisals. The

main arguments are:

360 performance rating system is not a validated or corroborated technique for

performance appraisal.

With the increase in the number of raters from one to five (commonly), it become

difficult to separate, calculate and eliminate personal biasness and differences.

It is often time consuming and difficult to analyze the information gathered.

The results can be manipulated by the employees towards their desired ratings

with the help of the raters.

The 360 degree appraisal mechanism can have an adversely effect the motivation

and the performance of the employees.

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360 degree feedback – as a process- requires commitment of top management and

the HR, resources (time, financial resources etc), planned implementation and

follow-up.

360 degree feedback can be adversely affected by the customers’ perception of

the organization and their incomplete knowledge about the process and the clarity

of the process.

Often, the process suffers because of the lack of knowledge on the part of the participants

or the raters.

3. ASSESSMENT CENTRES

An assessment centre typically involves the use of methods like social/informal

events, tests and exercises, assignments being given to a group of employees to assess

their competencies to take higher responsibilities in the future. Generally, employees are

given an assignment similar to the job they would be expected to perform if promoted.

The trained evaluators observe and evaluate employees as they perform the assigned jobs

and are evaluated on job related characteristics.

The major competencies that are judged in assessment centre are interpersonal

skills, intellectual capability, planning and organizing capabilities, motivation, career

orientation etc. assessment centre are also an effective way to determine the training and

development needs of the targeted employees.

4. BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which

combines the graphic rating scale and critical incidents method. It consists of

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predetermined critical areas of job performance or sets of behavioral statements

describing important job performance qualities as good or bad (for e.g. the qualities like

inter-personal relationships, adaptability and reliability, job knowledge etc). These

statements are developed from critical incidents.

In this method, an employee’s actual job behavior is judged against the desired

behavior by recording and comparing the behavior with BARS. Developing and

practicing BARS requires expert knowledge.

5. HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource

accounting method tries to find the relative worth of these assets in the terms of money.

In this method the performance of the employees is judged in terms of cost and

contribution of the employees. The cost of employees include all the expenses incurred

on them like their compensation, recruitment and selection costs, induction and training

costs etc whereas their contribution includes the total value added (in monetary terms).

The difference between the cost and the contribution will be the performance of the

employees. Ideally, the contribution of the employees should be greater than the cost

incurred on them.

Challenges Of Performance Appraisal

In order to make a performance appraisal system effective and

successful, an organization comes across various challenges and problems. The

main challenges involved in the performance appraisal process are:

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Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems faced

by the top management. The performance data to be considered for evaluation

should be carefully selected. For the purpose of evaluation, the criteria selected

should be in quantifiable or measurable terms

Create a rating instrument

The purpose of the performance appraisal process is to judge the

performance of the employees rather than the employee. The focus of the system

should be on the development of the employees of the organization.

Lack of competence

Top management should choose the raters or the evaluators carefully.

They should have the required expertise and the knowledge to decide the criteria

accurately. They should have the experience and the necessary training to carry

out the appraisal process objectively.

Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect

(i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep

in the appraisal process. Therefore the rater should exercise objectivity and

fairness in evaluating and rating the performance of the employees

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Resistance

The appraisal process may face resistance from the employees and the

trade unions for the fear of negative ratings. Therefore, the employees should be

communicated and clearly explained the purpose as well the process of appraisal.

The standards should be clearly communicated and every employee should be

made aware that what exactly is expected from him/her.

Performance Appraisal Software

The growing size of the organisations, the competition in the labour market and

the importance of the performance management and appraisals have given way to the use

of performance appraisal softwares. Many companies providing the HR services and the

software companies provide the performance appraisal softwares.

The performance appraisals softwares automate the appraisal processes and assist

the HR by adding online capacities to the processes. The performance appraisal software

can be customized according to the needs of the organisation. The various forms and

other processes can be designed in accordance to the practices being followed in the

organisation.

The software standardizes the appraisal process. The software applications also

have guidelines for the users to guide them throughout the process, alerting the users

about the errors and mistakes (if any), suggesting the appropriate language to be used,

provides a systematic records of the necessary documents to the rater and the HR

Department.

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Several software packages are available which also provide the 360-degree review

program so that employees can get a multi-rater feedback about their performance.

Benefits of using performance appraisal softwares

By using the performance appraisal softwares, an organisation can reap the following

benefits:

The performance appraisal software can be implemented organisation wide,

covering all the employees at the levels (from lowest rank to top management)

and across all the branches of the organisation throughout the world.

Designed with the latest technologies, they are easy to understand and make

things structured, organized and standardized throughout the organisation.

Performance Measures, KPI and KRA’s, goals and objectives for each employee,

team and department can be weighted and listed according to their importance and

priority.

Use of the standard performance appraisal softwares can help to reduce the

subjectivity and the bias in the ratings of the appraisers.

It facilitates the calculations and adjustments of the performance related pay and

other related HR decisions.

Automatic reminders can be sent to the employees and the concerned authorities

for the due appraisals.

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It helps the HR department in appraising the performance and to manage the

performance of the employees efficiently and effectively.

Helps to improve the productivity of the employees and employee retention in the

organisation.

Keeps a detailed record of the past performances and the reviews of the

employees.

Performance Appraisal Process - Key to Change organizational Culture

The performance appraisal process provides an opportunity for introducing

organizational change. It facilitates the process of change in the organizational culture.

The interactive sessions between the management and the employees, the mutual goal

setting and the efforts towards the career development of the employees help the

organization to become a learning organization. Conducting performance appraisals on a

regular basis helps it to become an ongoing part of everyday practice and helps

employees to take the responsibility of their work and boosts their professional

development.

Various studies in the field of human resources have already proved that performance

appraisal process can affect the individual performance (in a negative or positive way),

thus having an impact on the collective performance.

Performance appraisal: An opportunity for an organisational culture shift

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Performance appraisal process focuses on the goal setting approach throughout

the organisation.

Performance appraisal helps the clarity and understanding of the roles and

responsibilities of the employees.

The performance appraisal processes have the potential positive effects on

recruitment

It increases organisational effectiveness i.e. what to do and how to do through a

formal and structured approach.

Some evidence of the beneficial effects of team rewards

Therefore, performance appraisal is also an important link in the process of change in

organization culture.

LINKING COMPENSATION TO PERFORMANCE

One of the latest strategies being followed in all sectors through out the world for

retention and talent management is “linking compensation to performance”. Commonly

known as “Performance pay” or “Performance based pay”, it links the compensation of

the employees to their performance and their contribution to the organizational goals.

Therefore, periodic performance reviews play a vital role and provide the basis of

performance related pay.

Commissions, incentives and bonuses, piece rate pay help the employer to pay the

employee according to their productivity and hard work.

The process of performance based pay involves:

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Deciding and clearly defining the performance goals and the performance

measures

Setting the target bonus for different levels of performances

Measuring the performance of the employee

Giving rewards and bonus according to performance

Organizations are also designing variable compensation plans for various roles and

positions in the organization.

Types of Performance Pay

Merit pay – The first step to performance pay, merit pay means setting some

basic salary according to the position and the rank of the employee and the

variable part of the salary is based on the periodic performance reviews.

Profit Sharing – Sharing the profits of the enterprise with the employees as

bonus.

Incentives and Performance Bonus – Rewards for special accomplishments or

fulfillment of the targets set such as sales commission.

Gain sharing - Sharing of gains as a result of the increased performance of the

employees with them.

Although performance related pay has always been a topic of discussions and

controversies with many arguments against it, but it has also been proved that

performance based pay motivates employees to perform better and earn, and encourages

learning, innovation, creativity, problem solving and empowerment which can be

facilitated through proper performance measurement and reviews.

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Relationship Between Performance Appraisal and Organizational Performance

Performance appraisal processes are one of the central pillars of the performance

management which is directly related to the organizational performance and have a direct

impact on it. Employee performance ultimately effects the organizational performance

and objectives.

According to a few HR professionals, the appraisals have no value for the

organisation as there is no direct relationship in performance appraisals and the

organizational performance. Also, there is no strong evidence to prove that appraisals

positively impact the performance of the employees. But the HR professionals who see

the organizational performance as a result or sum of the employee’s performance, argue

that apart from the direct benefits to the organisation, appraisals contribute to employee

satisfaction, which in turn leads to improved performance.

For an organisation to be effective, the goals, the standards and the action plans

need to be planned well in advance. Thus, performance appraisal facilitates the

achievement of organizational goals. It also facilitates the optimal use of the

organizational resources.

Performance appraisals – a double-edged sword

Performance appraisal is like a double edged sword for an organisation. Although

it has many benefits for the organisation, various studies have also revealed that

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performance appraisals have the equal probability of having a bad impact on the

organizational as well as the employee performance.

Where the performance appraisal improves the work performance and employee

satisfaction, it can also demotivate employees and leaving a bad impression on the good

employees. Most of the employees do not approve of continuous performance monitoring

and performance appraisals, and also consider it as a burdensome activity. According to

Professor Kuvaas “Performance appraisals and other tools which involve feedback

and target management should be adapted to the employee’s individual needs and

characteristics. Otherwise, there is a risk of harming the good employees without

being able to help the less good.”

Performance appraisal processes can create a sense of insecurity in the working

environment and can become an obstacle in achieving the required changes in the

attitudes and the performance of the employees. The element of bias in the appraisals can

also worsen the situation.

Therefore, performance appraisals can effect the organizational performance both

positively and negatively, and should be dealt with care and expert knowledge and

experience.

Performance Appraisal For Employees at Different Levels

Performance appraisal is important for employees at all levels throughout the

organization. The parameters, the characteristics and the standards for evaluation may be

different, but the fundamentals of performance appraisal are the same. But as the level of

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the employees’ increases, performance appraisal is more effectively used as the tools of

managing performance.

Performance appraisals of Managers:

Appraising the performance of managers is very important, but at the same time,

it is one of the most difficult tasks in the organization. It is difficult because most of the

managerial work cannot be quantified i.e. it is qualitative in nature like leading his/her

team, guiding, motivating, planning etc.

Therefore, the two things to be noted and evaluated for the purpose of appraisals are:

Performance in accomplishing goals, and

Performance as managers

Performance in accomplishing goals

Managers are responsible for the performance of their teams as a whole.

Performance in accomplishing goals would mean to look at the completion or

achievement of the goals set for a team of employees which is being assigned to or

working under a particular manager. The best measuring criteria for a manager are hi

goals, his plans of course of action to achieve them and the extent of achievement of the

goals.

Performance as managers

The responsibilities of managers include a series of activities which are concerned

with planning, organizing, directing, leading, motivating and controlling. Managers can

be rated on the above parameters or characteristics

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Criteria for measuring performance at different levels:

The criteria for measuring performance changes as the levels of the employees and

their roles and responsibilities change.

A few examples for each level are described below:

For top level management

Degree of organizational growth and expansion

Extent of achievement of organizational goals

Contribution towards the society

Profitability and return on capital employed

For middle level managers

Performance of the departments or teams

Co-ordination with other departments

Optimal use of resources

Costs Vs. revenues for a given period of time

The communication with superiors and subordinates

For front line supervisors

Quantity of actual output against the targets

Quality of output against the targets

Number of accidents in a given period

Rate of employee absenteeism

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Pre-requisites for Effective & Successful Performance Appraisal

The essentials of an effective performance system are as follows:

Documentation – Means continuous noting and documenting the performance. It

also helps the evaluators to give a proof and the basis of their ratings.

Standards / Goals – The standards set should be clear, easy to understand,

achievable, motivating, time bound and measurable.

Practical and simple format - The appraisal format should be simple, clear, fair

and objective. Long and complicated formats are time consuming, difficult to

understand, and do not elicit much useful information.

Evaluation technique – An appropriate evaluation technique should be selected;

the appraisal system should be performance based and uniform. The criteria for

evaluation should be based on observable and measurable characteristics of the

behavior of the employee.

Communication – Communication is an indispensable part of the performance

appraisal process. The desired behavior or the expected results should be

communicated to the employees as well as the evaluators. Communication also

plays an important role in the review or feedback meeting. Open communication

system motivates the employees to actively participate in the appraisal process.

Feedback – The purpose of the feedback should be developmental rather than

judgmental. To maintain its utility, timely feedback should be provided to the

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employees and the manner of giving feedback should be such that it should have

a motivating effect on the employees’ future performance.

Personal Bias – Interpersonal relationships can influence the evaluation and the

decisions in the performance appraisal process. Therefore, the evaluators should

be trained to carry out the processes of appraisals without personal bias and

effectively.

“PERFORMANCE RELATED PAY”

Performance Related Pay

• Performance Related Pay (PRP) or Variable Pay is the reward paid to individuals

based on performance against the predetermined objectives aligned to the

business.

• PRP is essentially a method of linking the pay of an individual to his/her

performance achieved at work (usually) against agreed objectives.

• It is a method to remove or bridge the gap between pay and performance.

• It is based on premise in general that top performers are funded at the cost of

lower/non-performer.

Ways of linking Pay to Performance

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• Varieties of ways such as cash bonuses, additional salary/increments, faster

incremental progression, all of which have their strong and weak points.

• Different plans each uniquely suited to different employee groups/departments.

• Separate from profit related pay, group incentive schemes or profit sharing scheme.

• Not to be confused with base pay adjustments.Benefits:

• Motivating people and creating performance oriented culture

• To attract, retain and utilize most talented or right people in the organization

• To catch top performers attention and sends a signal to a poor performing

employee

• Sends vital signals about the organization priorities and values

• Transforming reward from entitlement to achievement

• Close to 78% companies view that this has positive impact on business results

• Shifting compensation cost from fixed to variable expenses

• 20% people contributing 80% of the results should be suitably rewarded

• Best way to increase productivity to secure dominance in the market

• Paying for performance works much better in down times than in boom times

• It is right and proper to pay in accordance with the contribution made by

individual

Creating Effective PRP Plan

Full commitment from the management and senior executives

Compensation system that

Differentiates rewards, not just performance

Sets clear performance-reward linkage

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Support and involvement of senior executives and managers who will own,

educate and communicate the plan

Good “Performance Management Program (PMP)” in place which

Establishes clearly defined “SMART” individual objectives and competencies

aligned to overall organization goals

Encourages and supports open, honest feedback and review of all

Hold employees accountable for results

Hold managers for substandard performance and for improving or removing poor

performers

Formally recognizes and rewards the higher performance

Clear identification of the target group, department, level etc.

Requires high performance culture

“MEASURING PERFORMANCE”

GOALS 2007 December, 2007Name Job Title Qualification Reporting to Deptt. Date of joining

GOALS FOCUSING ON GROWING THE BUSINESS

GOALS/OBJECTIVES DESIRED RATING

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STRATEGICPRIORITIES/ACTION PLAN

1. SALES VOLUME/ MARKET SHARE

2. DISTRIBUTION LEADERSHIP

3. VISIT MANAGEMENT

25

8

10

12

80

4. PROFITABILITY/ COST/ DISCOUNT CONTROL

5. PROCESS ORIENTATION

12

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GOALS FOCUSING ON GROWING PEOPLE/ORG. CAPABILITY

OBJECTIVES DESIRED RATING(33)

STRATEGICPRIORITIES/ACTION PLAN

1. COACH AND DEVELOP FOR

2. SALES TRAINING

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PERFORMANCE RATING SCALES & LEVELS5 SAT Significant Above Target : Significantly exceeded expectations4 AT Above Target : Consistently exceeded expectations3 OT On Target : meet all & exceeded some expectations2 BT Below Target : Meet some, but not all, expectations1 SBT Significant Below Target : Significantly below expectations

“ARRIVING AT PERFORMANCE LEVEL”

PERFORMANCE LEVEL

PART - I PART - IIPERFORMANCE

LEVEL( TOTAL OF PART

I & II)

WEIGHTED AVERAGE

PERFORMANCE LEVEL

WEIGHTED AVERAGE

PERFORMANCE LEVEL

SAT 5 5 X 2 = 10 5 X 1 = 5 15151413

AT 4 4 X 2 = 8 4 X 1 = 4 121211

OT 3 3 X 2 = 6 3 X 1 = 3 91098

BT 2 2 X 2 = 4 2 X 1 = 2 6765

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SBT 1 1 X 2 = 2 1 X 1 = 1 3

4321

“ESTABLISHING LINKAGE OF PERFORMANCE TO REWARD”

PERFORMANCE LEVEL

PART - I PART - I ITOTAL OF PART I & II

BASE PAY RAISE (%)

VARIABLE PAY (%)

TOTAL

INCR

WEIGHTED AVERAGE

PERFORMANCE LEVEL

WEIGHTED AVERAGE

PERFORMANCE LEVEL

SAT 5 5 X 2 = 10 5 X 1 = 5 1515 15 15 3014 14 11 2513 13 7 20

AT 4 4 X 2 = 8 4 X 1 = 4 1212 12 4 1611 11 2 13

OT 3 3 X 2 = 6 3 X 1 = 3 910 10 0 109 9 0 98 8 0 8

BT 2 2 X 2 = 4 2 X 1 = 2 6 7 7 0 7

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6 6 0 65 5 0 5

SBT 1 1 X 2 = 2 1 X 1 = 1 3

4 0 0 03 0 0 02 0 0 01 0 0 0

DATA ANALYSIS AND INTERPRETATION

Number of Employees working at different levels in Pepsi

Employees Years2005 2006 2007 2008

Top-level Managers

14 17 23 22

Middle-level Managers

78 88 102 106

Front-line supervisors

23 22 22 41

Total 115 127 147 169

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Number of Top-level Managers in different departments in Pepsi

Managers Years2005 2006 2007 2008

HR 1 1 1 1Sales 4 6 7 8Marketing 1 1 1 1Production& Quality

5 4 7 7

Finance 1 2 2 2Shipping 1 1 2 1Purchase 0 1 1 1Head Office 1 1 1 0Store 0 0 1 1

Number of Employees placed at different Performance Level according to their roles and responsibilities change:

Top-Level Managers:

Year 2007=14 Managers

Year 2008=17 Managers

Year 2009=23 Managers

Year 20010=22 Managers

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Performance Level Years2007 2008 2009 2010

SAT 5 4 6 10 16AT 4 7 9 11 6OT 3 3 2 2 -BT 2 - - - -

SBT 1 - - - - In 2007, there were 14 Managers. 3 more Managers were joined in 2007 and 6

Managers were joined in 2007. But in 2008, there were only 22 Managers because one of

them is transferred to another State.

ANALYSIS:

Most of the Managers are at SAT (Significant Above Target)

Performance Level

Maximum of the Managers are at AT (Above Target) Performance

Level.

Some of the Managers are at OT (On Target) Performance Level.

This is due to their efficiency and contribution towards the organization.

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Middle-Level Managers:

Year 2005=78 Managers

Year 2006=88 Managers

Year 2007=102 Managers

Year 2008=106 Managers

Performance Level Years2006 2008 2009 2010

SAT 5 9 19 23 31AT 4 25 30 50 60OT 3 42 38 29 15BT 2 2 1 - -

SBT 1 - - - -

In 2005, there were 78 Managers. 10 more Managers were joined in 2007, 14

Managers in 2007 and 4 Managers in 2008 were joined. There is a continues increase in

the number of Middle Level Managers.

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ANALYSIS:

Poor Performance due to

Lack of alignment of individual and organizational goals.

Managers are not thrilled to deliver less then favorable news.

Influence of higher rating by other department.

But there were continues improvement in their Performance Level.

Front-Line Supervisors:

Year 2006=23 Supervisors

Year 2007=22 Supervisors

Year 2008=22 Supervisors

Year 2009=41 Supervisors

Performance Level Years2007 2008 2009 2010

SAT 5 5 7 10 21AT 4 5 6 8 15OT 3 10 7 3 5

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BT 2 3 2 1 -SBT 1 - - - -

In 2007, there were 23 Supervisors. 22 Supervisors in 2008 and in 2009 but in

2010, there was high increase in number i.e. 41 Supervisors. There is a continues increase

in the number of Front-Line Supervisors.

ANALYSIS:

Poor Performance due to

Lack of confidence and competence.

Lack of productivity and effectiveness, contributes least to organization bottom

line.

SUGGESTIONS AND RECOMMENDATION

1. Pepsi should build a strong management and development framework to stand the

vigorous competition from the various industries.

2. Paper work must be reduced, computerized work should be more.

3. There should be on-line information of all the employees regarding all the activities

performed by them like performance, communication skills, quality of work, over

time devoted by each employee, etc.

4. By adopting MBO method, Employees compete against each other and don’t help

others.

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CONCLUSION The Performance Appraisal methods vary from one organization to another.

Change in method of Performance Appraisal has observable and immediate side effect on

organizational processes like work task, job design, organizational structure, knowledge

and skill required, and values, attitudes and behavior of employees. Substantive changes

in one or more of the above factors leads to perceive or actual psychological threat of job

displacement, reduction in economic security, disruption of social arrangements and

redefining of authority relationships. These threaten the psychological and social status of

an employee, triggering off resistance to change.

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QUESTIONNAIRE

CONTACT PERSON:…………………….

ADDRESS:………………………………

Number of Employees working at different levels in Pepsi

Top-level Managers Middle-level Managers

Front-line supervisors Others

Number of Top-level Managers in different departments in Pepsi

HR Sales Marketing

Production& Quality Finance Shipping

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Purchase Head Office

Store

Number of Employees placed at different Performance Level according to their roles and

responsibilities change:

Year 2007=14 Managers Year 2008=17 Managers

Year 2009=23 Managers Year 2010=22 Managers

But there were continues improvement in their Performance Level.

Year 2007=23 Supervisors Year 2008=22 Supervisors

Year 2009=22 Supervisors Year 2010=41 Supervisors

Kind of shop:

Eatery Confectionary

Grocery Others

Which brand do you purchase:

PEPSI BOTH

COCA-COLA

Average monthly consumption of PEPSI & COCA-COLA:

PEPSI

COCA-COLA

Which company do you like to promote more ;

a) Pepsi

b) coke

If yes, then what type:

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…………………………………………………………………………………

…………………………………………………………………………………

Any suggestion to the company:

…………………………………………………………………………………

……………………………………………………………………………

BIBLIOGRAPHY

BOOKS

Marketing management - PHILIP KOTLER

Research Methodology - KOTHARI,C.R

WEBSITE

www.google.com

www.pepsico.in

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www.rkigroup.com

www.wikipedia.com

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