STUDY OF MARKET SHARE AND PROMOTION ACTIVITIES OF PEPSI WITH REFERENCE TO PEPSICO (TIRUPATI AGENCIES) LATUR, MAHARASHATRA.

A PROJECT REPORT SUBMITTED TO

SWAMI RAMANAND TEERTH MARATHWADA UNIVERSITY, NANDED FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

UNDER THE FACULTY OF MANAGEMENT SCIENCE BY Mr. KAMBLE AMITKUMAR MARUTI UNDER THE GUIDENCE OF

Prof. BHANJI MADAM DAYANAND COMMERCE COLLEGE LATUR SWAMI RAMANAND TEERTH MARATHWADA UNIVERSITY, LATUR. DECLARATION I hereby declare that the thesis entitled STUDY OF MARKET SHARE AND PROMOTION ACTIVITIES OF PEPSI WITH REFERENCE TO PEPSICO (TIRUPATI AGENCIES ) Latur, Maharashtra. Completed by me has not previously formed the basis for the award of any degree or diploma or other similar title of this or any other University or examining body.

Place: Date: maruti

Student Name. Mr. Kamble Amitkumar

CERTIFICATE This is to certify that the thesis entitled STUDY OF MARKET SHARE AND PROMOTION ACTIVITIES OF PEPSI WITH REFERENCE TO PEPSICO ( TIRUPATI AGENCIES ) LATUR, MAHARASHTRA.

Which is being submitted here with for the award of the degree of Bachelor of Business Administration of Swami Ramanand Teerth Marathwada University, Nanded . The result of original research work completed by Mr. Kamble Amitkumar Maruti under my supervision and guidance..

Project Guide
Prof. BHANJI MADAM

H.O.D
Prof. SATPUTE MADAM

Principal

Dr. ATMARAM PALNITKAR GRATITUDE

work an accomplished fact to which I Several remain persons have contributed to make this research indebted I wish to record my sincere thanks to all of them, who has given me constant strength by their heavenly blessings throughout my life.

..Mr. Kamble Amitkumar Maruti

INDEX

Sr.No 1.

CONTENTS CHAPTER: I

Page No.

INTRODUCTION: 1.1 1.2 1.3 Introduction to study Objective of study Importance of study adoptedUniverse,

1.4 Methodology sampling etc

2.

CHAPTER II RESEARCH METHODOLOGY 2.1 Tools of data collection

A] Primary data B] Secondary data

2.2 3. 4.

Scope of the study

2.3 Limitations of the study CHAPTER: III Theoretical Frame Work CHPPTER: IV Organizational Profile

5. 6. 7. 8.

CHPPTER:V Data Presentation, Analysis & Interpretation CHAPTER: VI Conclusion CHAPTER: VII Finding & Suggestion CHAPTER: VIII Questionery & Bibliography

CHAPTER-I

INTRODUCTION

1.1

INTRODUCTION : In todays world of competition, it is not

possible for a company to survive by complacency about its products and markets. It is not possible for a company to simply produce its

goods but prime importance is focused towards customer satisfaction, satisfying customer needs, extending customer delight etc. Here, is where the importance of the Marketing Management lies. Marketing Management is about winning in this new environment. It is about understanding what consumers want and supplying it more efficiently, more conveniently, more attractively than competitors. It concerns itself with the whole combination of consumer satisfaction which leads to the choice of one brand in preference to another. Marketing also relates to the communication of facts/ideas in favour of ones own brand. All this is clubbed under the title of marketing . A Product is anything that can be offered to a market to satisfy a need or want. It is the thing which helps in earning revenues for the company. It constitutes the physical product, brand name, label etc.

Promotion activities include all the activities that the company undertakes to communicate and promote its products to the target market. The Promotion further includes the tools which helps a company to convey its message to customers. These tools include Advertising, Personal Selling, Publicity and Sales Promotion, among all these tools the most extensively used tools are advertising and sales promotion. Most of the companies are nowadays spending near about 40% of their total budget for promotion through sales promotion schemes. Sales promotion consists of a diverse collection of incentives tools, mostly short term, designed to stimulate and/or greater purchase of particular/services by consumers or the trade.

So these sales promotion schemes are generally targeted to directly consumers and for the retailers or the traders. These schemes can be in any form like Free Samples, Coupons, Cash

refund offers, Price offs, Premiums, Prizes, Free trials, Point of Purchase displays and demonstrations etc.

After this the most important aspect in the field of cold drink industry is make a close eye on the market share and the market position. Having exact information regarding the current and previous market share provides a better platform for the company to make further strategies and plans regarding to the achievement of new targets. As we know that in cold drinks industry it is not possible to have exact information regarding to the market share, so any information regarding to the market position will help the top management to take further steps.

1.2

IMPORTANCE OF PROJECT:-

Research problem is important from researchers own as well as companys point of view because it is the need of the hour to know about the present market condition and the effect of the promotional scheme on such conditions. From companys point of view the research has much more importance. The findings and suggestions given by the researcher may help the company to take the future decisions in order to achieve the companys goals.

1.3 STATEMENT OF PROBLEM Promotion activity have influence on market share? Which type of promotion is easily understand by customer?

1.4 OBJECTIVES OF THE STUDY:-

1.

To find out the market share/position of Pepsi products in Latur

city.
2.

To promote the sales promotional schemes launched by the

company in the market of Latur City.

3.

To find out the problems in the implementation of a sales

promotional scheme.
4.

To find out the impact of schemes on sales and behavior of

retailers.
5.

To find out the variables that affects a sales promotion scheme.

1.5 METHODOLOGY ADDOPTED Data is assimilated fact about the market information & is recorded experience that is useful for decision-making. In the research program the information required is both qualitative and quantitative.

The information required for the said research was about the outlet base status in which data about the name & address of outlet, the position of the Pepsi products in the outlet crate-wise. Information relating to the refrigerator, racks, sign-boards & the Display made by the shopkeeper.

a) Type of research Exploratory as well as conclusive. Exploratory research refers to that research which put emphasis on the development of hypothesis rather than on their testing. b) Period of research 20 jan to 31march 2013. These two months work has been done in starting of peak season for soft drink industry.

c) Sampling Units Dealers/outlets of Pepsico)

CHAPTER II

RESEARCH METHODOLOGY
Data Source The data was collected for this project with the help of both primary as well as secondary data. The secondary data was collected through internet and from the company but this secondary data was not sufficient for the purpose of the project, so it was necessary to go for the primary data, which was collected through market survey. Information from the dealers retailers/outlets. Dealers were asked questions and interviewed for the structured EDS (each dealer survey) format made to get the information by the Company. Information about market position for the route analysis, route mapping, extensive survey was made by visiting Pepsis outlet with salesman. Tools Of Data Collection

Researcher collected data with the help of following methods i) ii) iii) Interview method Observation method Schedule method In this method data is collected by Dealers and REAILERS .

Interview method :interviewing the

Observation method :- In this method researcher observed the visibility of The product and presence of glow signboard, Tin board, Stands, Banners.

Schedule Method:and dealers.

In this method researcher visited the dealers asked close ended and open questions to

Data Collection Instrument: -

Primary data was collected through each dealer survey (EDS) prepared with the help of customer executive (CE). This is an instrument through which the data related to the actual position of the stock is to be measured, with the help of which the market share is to be calculated.

Market Survey:Market survey essentially done through field work and by visiting market outlets with salesmans (route riding).

Preliminary Work

Discussion with Territory development manager (TDM), customer executive (CE) and desk research led to the formulation of topic. EDS (Each dealer Survey) Design:EDS (Each dealer survey) format was done by Company Officers TDM (territory development manager), CE (customer executive). Pilot study was done in the nearby area to the distributor. This market survey for the project was undertaken by covering about 100 outlets from Latur city to get the necessary information. The retailers were asked as to the amount of stock they have kept, the soft drinks they patronized, their customers preference etc. On the promotion side it was noted that whether the outlet had a wall painting and racks of a particular soft drink, in this case it was found that there was either Coca-Colas or Pepsis. Similar was the case of display boards. Bottle Coolers like EBCs (Electric bottle cooler),

Visi coolers and OYC (Own Your Cooler) were also checked as to which of the retailers possessed them. Since segment of market outlets was visited there was a mixed response from the retailers, some were quite cooperative, some of them were indifferent but on the whole each one was eager to provide information as to the queries asked. The resultant market share received was through the following soft drinks as being in the market.

PEPSI Pepsi Pepsi Mountain 7up

V/S

COCA-COLA Coca-cola Thums-up Dew &

Sprite

Mirinda Lemon Slice Mirinda orange Aquafina

Limca Maaza Fanta Kinley

The stock noted down from the survey was based on per Crate.

2.4 1

SCOPE OF THE STUDY:-

The geographical scope of study limits to LATUR city

of MAHARASHTRA state of INDIA.

Since this is the comparative study the comparison of tested

product that is Pepsi has made with one of the leading national brand Coca-Cola. 3 The promotional scheme studied which was limited to the LATUR , MAHARASHTRA state only.

2.5

LIMITATIONS OF THE STUDY

1 Since a segment of market outlets was visited there was a mixed response from the retailers, some were quite cooperative, some of them were indifferent, some of them also provided based information regarding to their stock position which may create certain problems while calculating the exact stock position. 2 The research was conducted in Latur city, if the research would have been conducted in other city or over the country, the conclusion would have been different. 3 The companys rules and regulations didnt allow me to go to in depth regarding some confidential strategies.

4 The instrument used may not be 100 percent accurate.

CHAPTER-III

THEORETICAL FRAME WORK CONCEPT OF MARKET SHARE

Actual position of companies products in comparison to its competitors in a particular area is to be regarded as the market share of a particular product.

Techniques of finding market share As far as the soft drink industry is concerned there are mainly four techniques of finding the market share of the given products that are mentioned below as:1) Sale from distributors points 2) Sales figure from retail outlets 3) Availability of stock at retail outlets 4) Sample survey of used crowns Out of such given techniques third one Availability of stock at retail outlets is being used for finding out the market share.

A.a PROMOTION OF PEPSI Promotion is an important aspect of Marketing. As such, the soft drink industry does it in a big way. Soft drinks in order to capture the market have to be properly promoted so that they are able to garner a prominent market among its consumers. Hence during the survey conducted the objective was to know as to how Pepsi was promoting its products through its retailers. So, four main promotional aspects were covered:1. 2. 3. 4. Wall Painting (W.P) Display Boards (D.B) Electric Bottle Coolers (EBCs) Own Your Cooler (OYC)

Given below are the number of W.P , D.B, E.B.Cs, and OYCs noted from areas covered and their percentage distribution.

Sources of data:-EDS and through the information collected from distributors.

MODE OF PROMOTION WALL PAINTIN G PCI CC DISPLA Y BOARD PC CC PC CC PC I TOTAL PERCENTAGE DI ST.N 115 57% 87 43 % I 46 47 % I 18 44 % 23 56 % EBCS OYC

168 138 52 55 % 45 % 53 %

Analysis :- After the analysis of mode promotion it is found that wall painting and display boards is the main medium through which company is advertising more and by providing the equipments like EBCs and

VISI coolers the company is promoting its products indirectly by encouraging the retailers.

PROMOTIONAL STRATEGY Participation in celebrations like all festivals (Diwali, Lohri , Christmas etc), New Year celebrations etc. by sponsoring these major events. The company also promotes its products through POP, Danglers, posters, Stickers, GSBs, Dealer Boards etc. Various other schemes are also to be introduced from time to time according to competition.

 The company also promote its products through T.V ads, Newspapers(National and local) etc.

1 WALL PAINTINGS As per the Fig. 5.1 Pepsi has a share of 57% in wall paintings. This form of promotion is very effective in outlets like Stalls, Dhabas, Cinemas etc.

.2 DISPLAY BOARDS

This form of promotion is most popular and outlets with display boards of soft-drinks are able to get a good coverage for selling of soft drinks. Pepsi has a share of 55% to Coca-Colas 45%

.3 ELECTRIC BOTTLE COOLERS (EBC) Soft drink companies have introduced Bottle Coolers, as such Pepsis EBCs in the market are 53% as compared to that of CocaCola. .4 VISI COOLERS Another form of bottle coolers being provided by soft-drink companies in the market in which Pepsi has provided 60% and 40% by Coca-Cola.

.5 OWN YOUR COOLER (OYC)

These types of coolers are very few in the market in which Pepsi has provided 44% and 56% by Coca-Cola.

BOTTLE COOLER MACHINES PROVIDING COOLNESS FOR BOTTLES OF PEPSI

CAPACITY OF BOTTLE COOLER

AVERAGE NO. OF BOTTLES KEPT FOR COOLING

E.B.CS

100 Bottles or 4 crates 50 Bottles or 2 Crates

Visi Coolerss-I 100 Bottles or 4 crates 50 Bottles or 2 Crates Visi Coolers-II 200 Bottles or 8 crates 4 to 5 Crates

WALL PAINTINGS

DISPLAY BOARDS

VISI COOLERS

CHAPTER-IV
ORGANIZATIONAL PROFILE Introduction A) NAME OF THE UNIT: Tirupati agencies, Nanded road , latur, Maharashtra.