shashi pepsi project report 2010

8/6/2019 Shashi Pepsi Project Report 2010

1/67

PROJECT REPORT

ON

Comparatitive study of mango flavor on Pepsi and coca

cola

atM/s Varun Beverages Limited

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE

DEGREE OF PGDM

Submitted to Submitted byProf. SMIRTI BAJPAI Shashi shekhar pratapFaculty of MIM PGDM-15th

Roll No. -14046Session- (2009-2010)

MAHARISHI INSTITUTE OF MANAGEMENT

Maharishi Nagar, Noida-Dadri Road- 201304

Tel: (0120) 2567603 Fax : 0120-2562652Website:maharishiinstituteofmanagement.com

1Maharishi Institute of Management , Noida


2/67

PREFACE

Today the Soft Drinks market is flooded with different brands of soft drink resulting into

fierce competition. The companies have to adopt different marketing strategies in order to

compete in this era to cope in the prevailing situation. In order the companies always strive to

successfully introduce their products in the market with innovative ideas and pioneering strategies.

As soon as the Indian Economy opened up the economy, the cola giants, PEPSI &

COCA-COLA jumped in and then conquered the Indian soft drinks market with their aggressive

and ever changing strategies. They attacked almost all segments of the Indian consumer market

that has now resulted into multiphase expansion of the Indian soft drink market.

The amount of investment made by these companies in this short duration in India speaks

for itself. Both Coke as well as Pepsi has already made an investment of more than US$

700 million alone in the Indian market. Although these cola giants have worldwide presence but

their focus in the Indian market is phenomenal. With its effective and efficient distribution

network it is covering the need of entire population of the country.

With ever changing customer tastes and preferences, it is very difficult to develop an

effective programme. Proper sales promotion strategies should be set up in accordance to the

market location. Top-notch service and regular feedback also helps in keeping up the pace.

.



3/67

ACKNOWLEDGEMENT

It was a great experience to be attached to such a reputed organization, which is a soft

drinks market leader in India. I express my deep sense of gratitude to M/s VARUN

BEVERAGES LIMITED (franchisee of Pepsi) for providing me an opportunity to

complete my summer training project.

I would like to thank Mr. H.S. Rana (Marketing Development Coordinator), Mr.

Hitesh Sardana (Account Development Coordinator), Mr. Prashant Sharma

(Customer Executive) and Mr. Praveen Kumar (Marketing Executive) for their

constant support and providing the itinerary at all stages of the project.

I also offer my sincere gratitude to DIRECTOR . Dr .K.B.Mehra and prof. smriti

bajpai Faculty ofMaharishi Institute of Management, for his useful suggestions, help

and support.

With regards,

SHASHI SHEKHAR PRATAP

PGDM -15Roll no. 15O46

Session -2008-10



4/67

CONTENTS

PARTICULARS PAGE NO.

Company Profile

Introduction of PepsiCo

Suggestions

Conclusion

Bibliography



5/67

EXECUTIVE SUMMARY

This project was undertaken for a period of eight weeks at M/s Varun Beverages Ltd (a Franchisee

of PepsiCo) for the partial fulfillment of the PGDM (Post Graduate Diploma in Management)

course from Maharishi Institute of Management, Noida. The objective of the project was to find out

what are the constraints and adherence in applying the Visicooler plannogram and how to tackle

them. To make retailers aware about the PepsiCo VisicoolerPlannogram and ensure that they do

follow it regularly to lure more customers and to ultimately increase its market share and their profit

(by 30%). To complete this project, a survey was conducted on retailers with the help of a

questionnaire in the region of East Delhi. The sample size was decided by Mr. H.S. Rana, which was

of 150 retailers. All retailers selected in the sample had been asked about PepsiCo Visicooler

Plannogram. After the survey, it was observed that PepsiCoVisicooler Plannogram has a vital

role in increasing sales of the company and that the same would directly have an impact on the market

share of the company. In East Delhi region, a lot of sales promotion activities had been already

initiated by the company. Among these activities, PepsiCo Visicooler Plannogram was an

absolutely new concept and it had an innovative way to attract both retailers & customers.

The basic purpose of the sales promotion activities is to enhance the demand of products by

temporarily increasing their value to the purchaser. A major area of improvement that the company

should look at is retailers awareness about the new Visicooler Plannogram. The same came to

light during the survey, wherein it was observed that most of the retailers do not have proper

information even about retailer centric promotions (POG) being offered by the company. The

Customer Executives, Salesman and Merchandiser of the company need to act as a bridge between

retailers and company. They should be properly equipped by complete knowledge of the schemes so

that they can give proper knowledge to the retailers.



6/67


7/67

Type Public (NYSE:PEP)

Founded New York, U.S.(1965)

Headquarters Purchase, New York , U.S.

Area Served Worldwide

Key people Indra Krishnamurthy Nooyi (Chairwoman),

(President) & (CEO)

Industry Food & Non-alcoholic beverage

Products Pepsi, Diet pepsi, Mountain Dew, Mirinda,

7UP, Nimbooz, Aquafina (mineral water),

Gatorade (sports drink), Slice, Tropicana

Products, Lehar (soda water), Quaker Oats,

Frito-Lay, Cheetos, Kurkure, Uncle Chipps

Revenue USD 43.251 Billion (2008)

Employees 185,000 (2008)

http://en.wikipedia.org/wiki/File:Pepsico_logo.svg


8/67

Divisions PepsiCo America (PepsiCo Americas Food,

PepsiCo Americas Beverages ), PepsiCo

International

Website PepsiCo.com



9/67

INTRODUCTION

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27

billion and over 147, 00 employees. The company consists of the snack business of Frito-

Lay North America and the beverage and food businesses of PepsiCo Beverages and

Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and

Gatorade/Tropicana North America0 and Quaker Foods North America. PepsiCo

International includes the snack businesses of Frito-Lay International and beverage

businesses of PepsiCo Beverages International. Pepsi Co brands are available in nearly

200 countries and territories.

With a fierce competition ranging amongst various companies involved in the field of soft

drink, brand awareness and promotion are indispensable for the future growth prospects.

In this project, I m going to discuss and analyze the awareness and positioning of SLICE

In the field of juice based product in the market and the taste & preference of consumer

In this project, based upon marketing research, I defined the problem, collected, organized

and analyzed the data; making deductions and evaluations; thereby reaching the

conclusions.

Brand awareness is not such an easy task; therefore, I m going to adopt a multiple strategy

in defining the problem, evaluating the data and suggesting the recommendations.



10/67

Multiple strategy includes an extensive research on secondary data i.e. data which has

already been collected by someone else; thereby making it much more valuable and

appropriate by analyzing it in the perspective of new and the first hand data i.e. Primary

Data, which happens to be original in character.

It is absolutely essential to determine the various ways for the business to grow and

succeed in a dynamic way and finding the root cause for the available problem, to discard

it.

Methodologically, marketing research uses several types of research designs namely;

Qualitative techniques, Quantitative techniques, Conceptual and Empirical techniques,

Descriptive and Analytical techniques etc. Researchers may adopt more than one research

designs i.e. a multiple research design strategy, but to achieve the aim and objective of the

project, Quantitative Research Design has been adopted- which is generally used to draw

conclusions, uses random sampling techniques to as to infer from the sample to the

population- involves a large number of respondents- examples include Surveys and

Questionnaires.

Therefore, the entire marketing research project depended hugely for its success on an

appropriate an effective Questionnaire as it is very rightly called the heart of the entire

survey operation. If it is not properly set up: -



11/67

Then the survey and its outcomes are bound to fail. Hence first and foremost, I m going to

define and explain the relevance and appropriateness of each and every questions which

was made a part of the Questionnaire and how it moved the project towards its pre-

determined objectives. To understand that better, we must have a look at the

Questionnaire compiled.

Brand awareness is the ability of potential buyer to recognize or recall that a brand is a

part of a product category. In other words, the customer should be able to identify a firms

product in the retail store or able to recall its brand whenever he or she thinks of the

product class. Brand awareness has to be thought of as a continuous range from an

uncertain felling that a brand is recognize to a belief that it is the only one in the product

class. At the top end of the continuum is the brand that exists at the top of the customers

mind. This is the happy and most desired condition that any marketer seeks. The next

level is of all the other brands that are recalled by the customer in an unaided form. The

customer is asked to recall as many as he or she is able to whenever one thinks of aproduct.

Shareholders

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

the United States. The company is also listed on the Chicago and Swiss stock exchanges.

PepsiCo has consistently paid cash dividends since the corporation was founded.



12/67

.

HISTORY OF PEPSI

Caleb Bradham of New Bern, North Carolina was a pharmacist.

Like many pharmacists at the turn of the century he had a soda

fountain in his drugstore, where he served his customers refreshing

drinks, that he created himself. His most popular beverage was

something he called "Brad's drink" made of carbonated water,

sugar, vanilla, rare oils, pepsin and cola nuts.

"Brad's drink", created in the summer of 1893, was later renamed

Pepsi Cola in 1898 after the pepsin and cola nuts used in the recipe. In 1898, Caleb

Bradham wisely bought the trade name "Pepsi-Cola" for $100 from a competitor from

Newark, New Jersey that had gone broke.

In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and

applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and

sold it exclusively through soda fountains. But soon Caleb recognized that a greater

opportunity existed to bottle Pepsi so that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered

with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme

line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to

bottle Pepsi to independent investors, whose number grew from just two in 1905, in the

cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907.

By the end of 1910, there were Pepsi-Cola franchises in 24 states.

http://inventors.about.com/library/bl_by_state_inventors.htm#North%20Carolinahttp://inventors.about.com/library/bl_by_state_inventors.htm#North%20Carolina


13/67

Pepsi-Cola's first bottling line resulted from some less-

than-sophisticated engineering in the back room of Caleb's

pharmacy. Building a strong franchise system was one of

Caleb's greatest achievements. Local Pepsi-Cola bottlers,

entrepreneurial in spirit and dedicated to the product's

success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola

enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per

year.

Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the

town of New Bern pictured it on a postcard. Famous racing car driver Barney Old field

endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer

before a race."

After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the

fluctuations of sugar prices during W.W.I, believing that sugar prices would continue to

rise but they fell instead leaving Caleb Bradham with an overpriced sugar inventory. Pepsi

Cola went bankrupt in 1923.

In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G.

Guth who reformulated the popular soft drink. Guth struggled to make a success of Pepsi

and even offered to sell Pepsi to the Coca-Cola company, who refused to offer a bid.

In 1940, history was made when the first advertising jingle was broadcast nationally. The

jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of

Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was

recorded into fifty-five languages.

http://inventors.about.com/library/inventors/blcocacola.htmhttp://inventors.about.com/library/inventors/blcocacola.htm


14/67



15/67



16/67

ORIGIN OF VARUN BEVERAGES LTD. UNDER RKJ GROUP

It can be said with absolute certainty that the RKJ Group has carved out a

special niche for itself. Its services touch different aspects of commercial and

civilian domains like those ofBottling, Food Chain and Education. Headed

by Mr. R. K. Jaipuria, the group as on today can laid claim to expertise and

leadership in the fields of education, food and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi

Foods Limited to manufacture and market Pepsi brand of beverages in

geographically pre-defined territories in which brand and technical supportwas provided by the Principals viz., Pepsi Foods Limited. The manufacturing

facilities were restricted at Agra Plant only.

Varun Beverages Ltd. is the flagship company of the group.

The group also became the first franchisee for Yum Restaurants

International [formerly PepsiCo Restaurants (India) Private Limited] in

India. It has exclusive franchise rights for Northern & Eastern India. It has

total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company.

It diversified into education by opening our first school in Gurgaon

under management of Delhi Public School Society. The schools of the group

are run under a Registered Trust namely Champa Devi Jaipuria Charitable

Trust. Companies are medium sized, professionally managed, unlisted andclosely held between Indian Promoters and foreign collaborators.

The group added another feather to its cap when the prestigious

PepsiCo International Bottler of the Year award was presented to Mr.



17/67

R. K. Jaipuria for the year 1998 at a glittering award ceremony at

PepsiCos centennial year celebrations at Hawaii, USA. The award was

presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the

presence of Mr. George Bush, the 41st

President of USA, Mr. Roger A.

Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig

Weatherup, President of Pepsi Cola Company.

Vision

Being the best in everything we touch and handle.

Mission

Continuously excel to achieve and

maintain leadership position in the

chosen businesses; and delight all

stakeholders by making economic

values in all corporate functions.

Their Success



18/67

Production of innovative, high quality retail

branded beverages combined with world-class

packaging.

Driven by a management team

with a relentless focus on achieving superior

customer service, driving earnings improvement and increasing

shareholder value.

Their People

At RKJ Group they are creating an environment

where our employees enjoy a greater degree of

empowerment both individually and in their work

teams.

Their employees are equipped

with the necessary tools, training

and management backup for strong performance and

accountability, as well as in an environment of open

communication and involvement.

RKJ GROUP OWNED BUSINEES IN INDIA AND

WORLDWIDE



19/67



20/67

COMPANY PROFILE WORLDWIDE

COMPANY VISION

To become truly global company, by continuing to build a competitive and

profitable worldwide refreshment beverage business.

PEPSI COLA INTERNATIONALS STRATEGY

Target core Brand

Focus on business growth.

Satisfy market priorities

Focus on franchising with building core of company owner.

A North Carolina Pharmacist established Pepsi Cola in 1980 as a cure for

Dyspepsia (indigestion). Under the supervision of Mr. Bradhman Pepsis

first bottling plant was build 1905.

In 1977, when Coca-cola left the country then Pepsi Co. began to lay

plans to enter this huge Indian soft drink market. Pepsi working with Indian

business groups to seek government approval for its entry in the India soft

drink market. Pepsi offered Indian Government to help in the exports of

some of its agricultural products in a volume that would cover the cost of

importing soft drink concentrate.

Pepsi Company is established in Indian in 1989. At that particular time it

was know as a non-Cobo (Company owned bottling operations) company. In

January 1995 Pepsi took over and it is now known as a Cobo (Company

owned bottling operations) company. It joined hands with Voltas Ltd with

60%equity. But now it has become a fully owned subsidiary.

Pepsi Company is broad based food and Beverages Company, servingmore than 60% of its sales and operation profits from its snack- foods and



21/67

restaurants business. Established with a turnover of $ 28 billion in 1989, thecompanys beverage business has grown 50% streets ahead of the market;which has expanded by 20%. It poured in vast sums to whip up its visibilityat the retail level, so that consumes were greeted virtually at very streetcorner by Pepsis blue-red and white colors. Behind the hype, in effortinvisible to consumers, Pepsi pumped in Rs.300 Crore to add muscle to itsinfrastructure in bottling and distribution. This is apart from the money thatup grading the plants.

April 1993, Voltas and Punjab Agros equity stakes were bought over

converting Pepsi Foods from a joint venture to fully own subsidiary. Weak

bottlers who did nit have the finance were given massing support in from of

interest- free loans to upgrade their operations. But the big strategy, which

has proved to be winner was the position Pepsi, decided taken company

owned Bottling operations (COBO). For this another subsidiary Pepsi co.

India Holding was set up as investment vehicle capitalized at $9.5 million.

1991 saw a major launch of 7-up in India, which was warmly received by

India customers and consumers.

1994 Pepsi achieved the number 1 position in cola brand India.

1995 2new COBOs were opened in UP & Gujarat.

1996 Mirinda attend No 1 Position in orange beverage category.

May 1998 was major launch of Mirinda Lemon in India.

Pepsi is trying very hard to maintain the lead it made over its competitors

in the India sift drink market. It is expanding its business in the other fields

also. It is in the business of export of beverages concentrates. This year Pepsi

has achieved a 100% growth in the export turnover in the first quart of 1998

over the corresponding period for the previous year. Pepsi has taken a lead in



22/67

the beverage concentrate exports from potential in the near future. Pepsi has

also developed agricultural linkages to boot its export thrust and as a move in

the direction, its plant at Sonepat has become the first rice-processing facility

in India.

Pepsi mean while added a new range of products to its agro-export

Portfolio. These include Baron, a bread of peanut butter marketed in U.S.,

Branded red and green chili, Puree, ginger and garlic paste &cooking paste

under the seasons Harvest home, which is also the name of its branded

basmati rice.

At present Pepsi is trying very hard to maintain its position in the market. Itis operating in a very well managed manner. Some of its strategies itfollowed to be competitive in the market area follows

EMPOWERMENT

One of the strongest weapons in the Pepsis armory is the flexibility it has

empowered with its people. Every manger and sales person has the

authorities to take whatever steps he feels will make consumer aware of the

brand and increase its consumption.

CHANNEL MANAGEMENT

Pepsi has a very well managed distributive system. It is said the Pepsi dont

have bottlers, it has partners. Pepsi has a well-aligned bottling network. It



23/67

operates through COBO (Company owned bottling operations) and FOBO

(Franchise owned Bottling Operations)

It is this way a Pepsi Co., India Strengthens its marketing that gives it anedge. Every number of its sales team is meticulously taught themerchandising and display skills that can leverage the reach of thecompanys bottling network to achieve high visibility for the product.

COMPANY PROFILE IN INDIAN SCENARIO

Since the entry of Pepsi co. to India in 1987, the soft drink Industry hasundergone a radical change. When Pepsi entered parley was the leader withThumps UP being its flagship brand. Other product offerings by parley

included Limca & Gold Spot. Another upcoming player in the market wasthe erstwhile bottle of Coca-Cola, Pure Drinks. Its offerings included CampaCola, Camps Lemon and Campa Orange.

With the re-entry of Coca-Cola in the Indian market, Pepsi had to go infor more aggressive marketing to sustain its market share. The chronologythe initial phase of the Coal Wars in India was:



24/67

July 1986

An application for soft drinks-cum-snack food joint venture by Pepsi,

Voltas and Punjab Agro is submitted to the government after an earlier

proposed alliance- 1985, between Pepsi and Duncans of the Goenkas fails to

take off.

Sept.1988

Final approval for the Pepsi Foods Limited (P.F.L) project granted by

the Cabinet Committee on Economic Affairs of the Rajeev Gandhi

Government.

March 1990Pepsi Cola and Seven up Launched in limited market in North India.

May 1990

The government clears the Pepsi project again but with a change in brand name to Lehar Pepsi. Simultaneously it rejects the Coca-Colaapplication. Citra form the Parle stable hits the market.Dec 1991

Pepsi extends its soft drinks reach on national scale. Productslaunched Delhi and Bombay.

Jan 1992

Brito Foods application cleared by the FTPB. Pepsi and Parle start

initial negotiations for strategic alliance but talks break off after a while.

1993

Pepsi launches Teem and Slice. Captures about 25.30% of the softdrinks market in about two years.

July 1993

Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to92% Reports of coke Parle negotiations gain strength.1994



25/67

Pepsi brought Dukes& Sons

1995

Pepsi launched Cans having capacity of 330 ml in various flavors.

1997

Pepsi brought Mirinda Orange opposite to Fanta.

1998

Pepsi launched Lemon Mirinda to give taught competition to Limca.

1999

Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for

health conscious people.

1997

Refusing to dilute its equity state Coca-Coal winds up operations inthe country. Parle launches Thumps Up and Drinks launches Campa Cola.2001

Pepsi launched Aquafina.2003

Pepsi launched Mountain Dew

2005

Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.

2006

Bubbly Pepsi was launched.

2007

Pepsi Gold was launched.



26/67

ABOUT ORGANIZATION AND ITS OBJECTIVES

By the word organization we generally mean, a structural framework of

duties and responsibilities required of a personnel in achieving the

predetermined goals.

An organization of VBL is a simple yet complex in terms of the

different designations provided to its employees.

Companys overall view of organization can be successfully dealt as follows:

The people at PBG reflect the Companys emphasis on superior salescapability and service. In North America, more than one-half of PBG

employees work in sales, followed by nearly one-third in operation. Their

organizational structure, based on a general management model, reflects the

same priorities. The Vice President/General Managers of PBGs market units

lead marketing and sales efforts in contiguous geographic areas with

common major customers. They designed their organization to give their

market units the autonomy to serve the needs of individual customers,

develop market-specific strategies, and respond to local marketplace

dynamics. From the General Manager to the frontline customer

representative, the entire PBG sales force competes on a local level to serve

existing customers and to win new accounts.

Their aims are:

We compete locally.Small in big/small companyVisible community leadershipMindset of an entrepreneurKnow/Service every customer



27/67

Sense of urgencyThere is no tomorrow.Fix it today.Our success is built upon passion.

Every front-line job has targets.Reinforce goals, plan performancePrioritize, focus, simplifyClear accountability for resultsNo excuses.

Treat everyone fairly, and with dignity.Operate with integrity and justice.Every individual is important.

OBJECTIVES OF VARUN BEVERAGES

The objectives of VBL are:

To observe the implementation and working of

sales club programme at different sections in

Noida. To monitor whether it is successfully

implemented in the market.

To monitor the customer awareness about the

sales club programme whether they are fully

aware about the programme or not.

To check out that all the required materials for

sales club programmed are given to customer/

retailer or not.

To find out the effect on increasing the sales b/z

of sales club programmed at partial shop.



28/67

To monitor the purity of vis-cooler at sales club

account.

To monitor the purity of sack at sales club

account.

To monitor whether updates in the programmed

book is clan in time or not.

To make the books available to the customers.

OTHER INFORMATIONS ABOUT VBLEARNINGS RELASES

Pepsi Cos 2004 quarterly earnings releases are expected to be issued the

week of April 12

July 12, September 27, 2005 and January 30, 2005.

COMPANY DOCUMENTS

Investor relations: - Security analysts and other members the professional

financial community who have question Pepsi Cos investor relations

department at (914) 253-3035 or (914) 253-2155.



29/67

SHAREHOLDERS: - Pepsi Cos (symbol: PED) shares are traded

principally on the New York Stock Exchange in US. The company is also

listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. Pepsi

Cos has consistently paid cash dividends since the corporation was founded.

MISSION STATEMENT

Our mission is to be the worlds premier consumer products company

focused on convenient foods and beverages. We seek to produce healthy

financial rewards to invest as we provide opportunities for growth and

enrichment. Our employees, our business partners and the communities in

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

and integrity! as exclaimed by Pepsi Cos.

CORPORATE CITIZENSHIP

Pepsi Cos believe that they are corporate citizen; it has a responsibility to

contribute to the quality of life in our commodities. This philosophy is put

into action through support of social agencies, projects and programs. The

scope of this support is extensive-ranging from sponsorship of local

programs and support of employees voluntary activities to contribute to

time, talent and funds to programs of national impact. Each division is

responsible for its own giving program. Corporate giving is focused on

giving where Pepsi Cos employees volunteer.

PEPSI HEADQUARTERS

Pepsi Cos world headquarters is located in purchase, New York,

approximately 45 minutes from New York City. Edward Darell Stone, one of

Americas foremost architects, designed the seven building headquarters



30/67

complex. The building occupies 10 acres complex that includes the Donald

Mkendall sculpture gardens, a world acclaimed sculpture collection in garden

setting. The collection of work is focused on major twentieth century art, and

features work by such as Augusta Rodin, Henri Laurens, Henery Moore,

Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes

Oldenberg. The gardens were originally designed by the world famous

garden planner, Russel Page, and have been a visitors booth in operation

during the summer and spring.

TRAINING AND DEVELOPMENT

It provide following to employee:

On Job Training Program

In House Training Program

Out door Training Program

WELFARE ACTIVITIES

Company provides welfare activities to its employees like:

Uniform

Transportation facilities

Canteen

Annual meet etc.



31/67

QUALITY POLICY

The best delivery.

The best product in the market place

The highest quality

The best testing.



32/67

PROBLEM UNDERTAKEN/STUDIED



33/67

Quite often we all hear that A problem clearly stated is a problem half solved. This

statement signifies the need for defining a research problem. The problem to be

investigated must be defined unambiguously for that will help to discriminate relevant

data from the irrelevant ones. Defining a problem involves the task of laving down

boundaries with in which the researchers shall study the problems with predetermined

objectives in view. The techniques for the purpose involve the undertakings of the

following steps:

Understanding the problem

Understanding the mature

Surveying the available nature

Developing the ideas to through discussion

Rephrase the research problem

While conducting the survey in PEPSI and making a glance on the titles of the report i.e.

BRAND POSITIONING OF SLICE, following problems are pointed out under given

headings.

IDENTIFY THE PROBLEM:

1. The main problem is to know the awareness of the SLICE in the market.

2. To analyze the position of the SLICE in the juice based drink

3. To estimate the market share of the SLICE.

4. To find out the future demand of the product.

5. Advertising is effective to create impact on consumer or not.

6. To find out the expectation level of the consumer.

7. To know whether the company is able to met the demand of the product with

an effective supply chain method or not.



34/67

8. To know whether the company have effective distribution system or not.

9. To know whether company have successfully analyze there weak routes.

IDENTIFY THE POSSIBLE CAUSES OF PROBLEM:

To identify the possible causes of problem a detailed study is done. The various possible

causes that come into focus are:

1. Lack of proper means of promotional activity or advertising.

2. Lack of proper analysis of week route area.

PROBLEM SOLVING TECHNIQUES:

The company should have to monitor these variables:

Market share of product.

Taste and preferences of customer.

Promotional activities.



35/67

What's Inside Carbonated Soft Drinks

Soft drink production begins with the creation of flavored syrup using a closely-guarded

company recipe. The syrup is mixed with water and then carbonated by adding

carbon dioxide gas under pressure. This carbonation creates the "tingly fizz" that gives

soft drinks a refreshing taste. As with other foods, ingredients used in soft drinks are

approved and closely regulated by the U.S. Food and Drug Administration (FDA). The

ingredients used in soft drinks are found in a variety of foods. Ingredients may include:

Water: Soft drink production starts with a pure source of water. Regular soft drinks

contain 90 percent water, while diet soft drinks may contain up to 99 percent water.

Drinking water often includes trace amounts of various elements that affect its taste.

Because of this, bottlers use sophisticated filtering and other treatment equipment to

remove residual impurities and standardize the water used to make soft drinks.

Carbon Dioxide: When you open a soft drink bottle or can, the "pop" you hear and the

"fizz" you see is the rapid escape of carbon dioxide gas caused by the sudden release of

pressure on the beverage. Carbon dioxide, a colorless and odorless gas, is the essential

characterizing ingredient in all carbonated beverages. It is given off when we breathe and

is used by plants to produce oxygen. But when dissolved in water, carbon dioxide imparts

a unique taste. Bottlers buy pure carbon dioxide as a compressed gas in high-pressure

cylinders. Carbon dioxide gas is absorbed into the flavored soft drink in a carbonator

machine just before the container is sealed.

Flavors: One of the most important ingredients in soft drinks is flavoring. Most soft drink

bottlers mix many individual flavors to create distinctive tastes. Natural flavors in soft

drinks come from spices, natural extracts and oils. Fruit-flavored soft drinks such as

http://www.fda.gov/http://www.fda.gov/http://www.fda.gov/


36/67

orange and lemon-lime often contain natural fruit extracts. Other flavors such as root beer

and ginger ale contain flavorings made from herbs and spices. There are also some

artificial or man-made flavorings used in soft drinks since some natural flavors are limited

geographically, seasonally, or high demand.

Colors: Many people don't realize how important color is to taste perception. Color

affects our psychological impression of food. If you don't believe it, try eating a familiar

food in the dark. The colors used in foods and beverages come from both natural and

synthetic sources.

Acidulants: Similar to fruit juices and many other food products, most soft drinks are

slightly acidic. Acidulants add a pleasant tartness to soft drinks and act as a preservative.

Some soft drinks contain a small amount of one or two common food acidulants -

Phosphoric Acid and Citric Acid. Occasionally, other acidulants such as malic acid or

tartaric acid are also used.

Preservatives: Soft drinks do not normally spoil because of their acidity and carbonation.

However, storage conditions and storage time can sometimes impact taste and flavor. For

this reason, some soft drinks contain small amounts of preservatives that are commonly

used in many foods.

Potassium: Potassium is another essential nutrient found in many natural and man-made

food ingredients. Like sodium, potassium exists naturally in drinking water and, therefore,

soft drinks. Small amounts of potassium are also found in some of the flavoring agents

and other ingredients used in soft drinks.

Sodium: Sodium, in the form of various salts, is present in many natural and man-made

compounds. It is an essential mineral nutrient responsible for regulating and transferring

body fluids, as well as other important body functions. Although an adequate daily intake



37/67

of sodium is necessary for good health, excessive consumption has been tied to high blood

pressure in some people. Soft drinks are not significant sources of sodium in the diet. In

Soft drinks are classified by the Food and Drug Administration (FDA) as "low" or "very

low" sodium foods. Even people who are advised to restrict their intake of sodium by their

doctor can usually drink and enjoy soft drinks with their doctor's approval. Sodium-free

soft drinks are also available.



38/67



39/67

PEPSI PRODUCTS

Pepsi makes carbonated soft drinks i.e. cola and non-cola flavor.

CORE BRANDS:

PEPSI

DIET PEPSI

PEPSI CAFECHINO

MIRINDA LEMON

MIRINDA ORANGE

SLICE

MOUNTAIN DEW

7UP

AQUAFINA

SODA

PACKAGES

Two Types: single serve and multi serve

67 packages sizes and types.

Materials: glass, plastic, cans.

Packages may be returnable or non-returnable.



40/67



41/67

PRODUCT RANGE OF PEPSI

Gr.Noida plant in Varun Beverages plant is a dedicated plant for five major

products.

These are as follows:

PRODUCT BOTTLE

FILLING

PEPSI 300ml, 200ml

MIRINDA ORANGE 300ml, 200ml

MIRINDA LEMON 300ml, 200ml

SLICE 250ml

7-UP 300ml, 200ml

EVERVESS SODA 300ml

MOUNTAIN DEW 300ml, 200ml

Plant is producing 10 million cases every year.Plant has employed about 200 employees with separate company uniform on

permanent and causal basis. There are 40 managers/ officers/ supervisors and

rest of workmen. Plant is dispatching near about 125-150 tracks in peak

seasons per day to various location. This Plant spreads over 75 acres.



42/67

AN OVERVIEW OF PEPSI-COLA BRANDS PRODUCED BYVBL

PEPSI

CONTENTS: -

CALORIES 100

TOTAL FAT 0gm

SODIUM 25mg

POTASSIUM 10mg

TOTAL CARBOHYDRATE 27g

SUGAR 27g

PROTEIN 0g

CAFFEINE 25mg

Pepsi contains carbonated water, high fructose com syrup and/or sugar,

Carmel color, phosphoric acid, caffeine, citric acid and natural flavors.

SLICE

Produced at 80.c and is prepared by VBL on large scale!

CONTENTS: -

CALORIES 130

TOTAL FAT 0g

SODIUM 35mg

POTASSIUM 70mg

TOTAL CARBOHYDRATE 34g

SUGAR 33g



43/67

PROTEIN 0g

CAFFEINE 0g

Slice contains carbonated water, high fructose com syrup and/or citric

acid, potassium citrate, potassium benzoate (preserve freshness) gum

Arabic, malice acid, potassium sorbate (preserve freshness), yellow 6,

salt, ester gum, natural flavors, calcium disodium EDTA (to protect

flavor) and brominated vegetable oil.



44/67



45/67

MARKETING STRATEGY:

Marketing Strategy is a complete and unbeatable plan designed

specifically for attaining the marketing objective of the firm. The marketobjective indicates what the firm wants to achieves, the marketing strategy

provides for achieving them.The marketing is not just idea. It is a well outlined plan, and there are

different ways to formulating it. Basically formulating of marketing strategyconsists of two main steps.

Selecting a target market.Assembling the marketing mix.

Actually, the target marketing and marketing mix together constitute themarketing strategy of the firm.

When the Pepsi food company entered in the Indian soft drink market,

the market was already prevailed by coke and previously it was Parle. Pepsitried to establish in India with a unique marketing policy. Pepsi took intoconsideration of youth segment target market. Though the advertisement ofPepsi highlighted the style of living of young generation with different walkof life, Pepsi brought in its advertisement different stalwarts personalitiesfrom fields like young cine stars, sport stars and famous personalities fromdifferent fields. It has attracted the young generation and of course increasethe sale of Pepsi, also organized many national and international sportsevents to attract the young generation.

MARKET MIX OF V.B.P.L

The set of controllable tactical tools:

A product, place, price and promotion (4ps) that the firm blends to produce the response it wants in the target market. These are thefollowing 4ps. Products: - That could meet the identified needs of chosen

consuming groups. Place: - It performs various functions like transportation,

warehousing, channel management etc. so the products easilyreach the consumer.

Price:- Affordable price of products for customers. Promotion: - The firm carries out a no. of measures like

personal selling, advertising and sales promotion programmedwith view to communicate to the consumer and promote the

product.



46/67

It is the mechanism to achieve the consumptions of marketingprocess, striking the level of price that is accepted to the firm as wellas consumer.

4Ps policies of the Pepsi products:1. Product: - There are five lines of products of soft drink in India that is

almost matched with international quality product line.

Pepsi - 200 ml, 300ml, 600ml. and 2000 ml.

Miranda - 200 ml, 300ml, 600ml. and 2000 ml.

7 up - 200 ml, 300ml, 600ml. and 2000 ml.

Mountain Dew - 200 ml, 600ml. and 2000 ml.

Slice - 250 ml, 500ml, and 1000 ml.2. Price: - Product price are fixed by Pepsi Co India according to

competitors product price.3. Place: - Pepsi has a strong channel of distribution, and intermediaries

command the distribution work.

Plant - Depot - Distributor - Consumer.

By this simple distribution, Pepsi is doing well. The company is tryingto reach every remote village area. The company has succeeded tosome extent in reaching its target.

3. Promotion :- In the specific, sales promotion methods are those salesactivities that supplement both - personal selling and advertising andco-ordinate them and help to make them effective such as display,shows and exposition and demonstrations and other recurrent sellingefforts not in ordinary route.

Pepsi has variety of tools and techniques of salespromotion. Like for example sales promotion letters, catalogs, point ofpurchase (POP), display, customer service program and demonstrationof free sample.

PEPSICO DISTRIBUTION SYSTEM

Distribution of PepsiCo products mainly starts from bottling plant where company

mixes drink ingredients and fills up cans and bottles with the drink. There are different



47/67

channel and mode of distribution. All methods of distribution are same for both COBO

and FOBO

There are two type of bottling plant.

Company Operated Bottling Operation (COBO)

These are owned and operated by PepsiCo. The Pepsi Bottling Group is the

world's largest bottler of Pepsi-Cola beverages. PBG has the exclusive right to

manufacture, sell and distribute Pepsi-Cola beverages.

Franchisee Operated Bottling Operation (FOBO)

Franchising refers to the method of practicing and using another person's

philosophy of business. The "franchisor" that is PepsiCo authorizes the proven

methods and trademarks of his business to the "franchisee" that is RKJ Group in

India for a fee and a percentage of gross monthly sales. Various tangibles and

intangibles such as national or international advertising, training, and other support

services are commonly made available by the franchisor.

Type of distribution :

Direct in this method company supply products via direct routes.

Indirect in which company distributes through distributor.



48/67

Distribution Network:-



49/67



50/67

O rganizational STRUCTURE


Chairman

President

Unit Manager

TDM

ADC

Customer Executive Customer Executive

Distributers A,B,C

Route Agents

Distributers E,F

Route Agents

Helper Helper


51/67



52/67

A customer, also called client, buyer, orpurchaser, is usually used to refer

to a current or potential buyer or user of theproducts of an individual

ororganization, called the supplier, seller, orvendor. This is typicallythroughpurchasing orrentinggoods orservices.

The word derives from "custom," meaning "habit"; a customer was someone

who frequented a particular shop, who made it a habit to purchase goods of

the sort the shop sold there rather than elsewhere, and with whom the

shopkeeper had to maintain a relationship to keep his or her "custom,"

meaning expected purchases in the future.

The slogans "the customer is king" or "the customer is god" or "the customer

is always right" indicate the importance of customers to businesses -although the last expression is sometimes used ironically.

My customers are following:

Wholesaler

Retailer

Shopping mall

Shoppers & Hotels

Customer service is the provision ofservice to customers before, during and

after a purchase.

According to Jamier L. Scott. (2002) Customer service is a series of

activities designed to enhance the level of customer satisfaction that is, the

feeling that a product or service has met the customer expectation."

Its importance varies by product, industry and customer; defective or brokenmerchandise can be exchanged, often only with a receipt and within a

specified time frame. Retail stores will often have a desk or counter devoted

to dealing with returns, exchanges and complaints, or will perform related

functions at the point of sale.

http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Distributor_(business)http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Vendorhttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Rentinghttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Distributor_(business)http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Vendorhttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Rentinghttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Customer


53/67

Customer service is a type of service in which company give service to their

product and after sale service to their customer. Pepsi company has very

strong customer service regarding his vigi and sales.



54/67



55/67

Recruitment

It is the process of finding and attracting capable applicants for employment.

The process begins when new recruits are sought and ends when their

application are submitted. The result is a pool of applicants from which new

employees are selected.

Purposes for recruitment:

The general purpose of recruitment is to provide a pool of potentially qualified

job candidates, specifically, the purposes are to:

1. Determine the present and future requirement of the Tripty drinks Pvt.

Ltd in conjunction with its personnel planning and job analysis.

2. Increase the pool of job candidates at minimum cost.

3. Meet the organizations legal and social obligation regarding the

composition of its workforce.

4. Begin identifying and preparing potential job application who will be

appropriate candidates.

5. Increased organizational and individual effectiveness in the short term

and long term.

Recruitment Planning:

The first stage in the recruitment process is planning. Planning involves the

translation of likely job vacancies and information about the nature of these jobs

into a set of objectives or targets that specify the (I) number and (ii) type of

applicants to be contacted. In order to reduce costs, organization looks into

labour markets most likely to offer the required job seekers.



56/67

Generally, Tripty drinks Pvt.Ltd look in to the national market for managerial

and professional employees, regional or local markets for technical employees

and local markets for clerical and blue-collar employees.

1. Internal Recruitment:

Internal recruitment seeks application for positions from those who are currently

employed. Internal sources include present employees, employee referrals,

former employees, and former applicants. There is major advantage of internal

recruitment. First, it is less costly than external recruiting. Second, organization

typically has a better knowledge of the internal candidates skill and abilities

than the ones acquired through external recruiting.

2. External Recruitment :

External sources far outnumber the internal methods. Specifically, sources

external to an organization are professional or trade associations,

advertisements, college/ university/institute placement services, walk-ins and

write-ins, displaced persons, acquisitions and mergers, and competitors.

Generally in Tripty drinks Pvt.Ltd the most common and least expensive

approach for candidates is direct applications, in which job seekers submit

unsolicited application letters or resumes. Direct applications can also provide a

pool of potential employees to meet future needs.

Selection

Selection is the process of picking individuals (out of the pool of job applicants)

with requisite qualifications and competence to fill jobs in the organizations.

In Tripty drinks pvt Ltd the main medium of selection is Interview method. The

applications received from job seekers would be subjected to scrutiny so as to

eliminate unqualified applicants. This is usually followed by a preliminary



57/67

interview the purpose of which is more or less the same as scrutiny of

applications, that is, elimination of unqualified applications. Scrutiny enables

the HR specialists to eliminate unqualified job seekers based on the information

supplied in their application forms. Preliminary interview, on the other hand,

helps reject misfits for reasons, which did not appear in the application forms.

Interview has at least three objectives -(i) helps obtain additional information

from the applicant; (ii) facilitates giving general information to the applicant

such as company polices, job, products manufactured and the like ; and (iii)

helps build the companys image among the applicant.



58/67



59/67

PROMOTIONAL ACTIVITIES (FOR RETAILERS)

Promotional activities consist of various means of communicatingpersuasively with the target audience. The important methods are:

Advertisement: - Where an identified sponsors pays media(such as TV) to transmit to target consumer.

Personal selling: - Where sales representative employed by the firmengage in interpersonal communication with individual consumers and

prospective customers.Sales promotion: - Where the market utilizes displays,

demonstrations, premiums, contests or similar devices.Publicity and Public relation: - Help to stimulate supportive news

items about the firm and its product that have greater credibility with public

than advertisement.Of all the methods of promotional activities that constitute the

promotion mix, sales promotion is the only one method that makes use ofincentives to complete the Push Pull

promotional strategy of motivating the sales force, the distributor and theconsumer transacting a sale.

According to American Marketing Association sales promotionrefers Those activities other than personal selling, advertising and publicity,that stimulate consumer Purchasing and dealer effectiveness, such as display,shows and exhibition, demonstration and various other non-recurrent sellingefforts not in ordinary. Sales promotion is also known by the name ofExtra Purchasing Value (E.P.V.).



60/67

VISI COOLAR DISPLAY,OYE BUBBLY CAMPAIGN

MS DHONI, SHAHRUKH, DIPIKA



61/67

MEANING AND OBJECTIVE OF SALES PROMOTION

SL.No

SalesPromotion

Meaning Objective

1 Price off offers

Offeringproduct at lower

thanthe normal price

Toencourageimmediate

sales, attract nonnusers,induce newproduct trial.

2.Quantityoff

offer

offeringmore quantityofthe same product at noextra cost or a verynominal increase inthe

price the larger quantitypack.

Toencourage longerdurationconsumption,highest or excess quantitymovement fromthefactory, trade upconsumer for higherquantitypacks size.

3. Primium

Offer of anarticle ofmerchandise as anincentive inorder tosell

product of service

Toencourage purchasestimulate loyalty, offseasonsales promotion,induce trial of premiumtothe consumer.

4. Coupans

Whenthe consumer isentiledtoredeemspecificstandeardcertifecate for aproduct free or inpart payment. Coupons areusedbyboththemanufacturers andthedealers for sales promotion. Coupons maybe distributedbye-mail,bymedia advertisements,door-to-door. Inside product package or bydealers onpurchase.

toencourage producttrial, buildloyalty, tradeupregular users stimulatere-purchase rate, solicitenquiries.

5.Consumer

contests andluckydraws

Whenindividuals areinvitedtocompete onbasisof creative skills. The latteris basedonthe chance orluckfactor.

Tocreate brandawareness andstimulateinterest inthe brandacquaint consumers withbrandusage andbenefits buildtraffic at the storeprecipitate brandpurchase. Obtainconsumer feedback,pjromote advertisimenttheme of the company.

6. DiscountsOther thannormal tradeandcashdiscounts.

Topushmore sales totrade earlycashrecovery

7.Point-of-Purchase

(POP)

Those special displays,racks banner, exhibits, thatare placedinthe retailstore tosupport the sale ofa a brand.

Toattract traffic at theretail stores, remindcustomers, encourageimpulse buying, ensurevisibilitytothe advertisingcampaign.



62/67

ADVERTISING

Advertising is helpful to the consumer and also to the producers through the

advertisement producers provide information and create awareness about the products

among the consumers. There are different forms of advertisements - TV, radio, poster,

magazines, newspapers, banners, boards etc. Among these, the TV media is the most

popular. The great personalities of India are the brand ambassadors of the soft drinks.

Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola

bottlers and food service customers. This includes some of the world's best-loved and

most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola

brands young. At the base of every beverage business lays the secret formula of success,

the concentrate. In India Pepsi Food Ltd prepares the concentrate. The plant is located at

village Channo in Punjab. The company manufactures and sells soft drink concentrate to

Pepsi-Cola bottlers. The company also provides fountain beverage products.

Pepsi has continuously focused on the current teen generation and their

advertisement reflects in every possible way.

The company changes its advertisement strategy and image to reflect the

targets interests.

The advertisement strategy includes cool, hip promos to attract more of the

target audience.

The advertisement is mostly creative and has different elements like, music,

sports etc.



63/67



64/67



65/67

SWOT ANALYSIS

STRENGTHS: -

o Strong Brand name

o Pepsi has a broader product line and outstanding reputation

o Great brands ,strong distribution ,innovative capabilities

o High demand of the product

o Number one maker of snacks , such as corn chips & potato chips

o Wide and effective distribution network and well-built market

o Highly educated and well experienced Top Management

WEAKNESS: -

o Purity and quality of the products are estimated manually.

o Promotional activities in the rural market are not up to the mark as compared to

the urban market.

o Rude behavior of the salesman

o More emphasis is given on the big dealers.

o PEPSI has only one cola flavour where as its competitor has Coke and Thumps-

Up.

o Not all pepsico products bear the company name



66/67

OPPURTUNITIES: -

o

It should give more incentives to the dealers in the new areas, where there is ahuge market potential.

o There are increasing trend toward healthy foods.

o More lucrative schemes must be launched regularly, specially during off seasons

so as to attract more and more customers.

o Apart from sponsoring films, cricket and music it should also sponsor the different

fashion shows, quizzes and debates in schools and colleges.

o If improve the salesmanship it can attract more n more retailers.

THREATS: -

o Now the consumers are moving towards fruit juices.

o F & B industry is mature

o Big threat is from its rival Coke.

o Size of company will demand a varied marketing program ; social, cultural ,

economic , political and governmental constrains .



67/67

PEPSI .. YEH DIL MAANGEMORE

shashi pepsi project report 2010

Documents