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HOUSEHOLD DISTRIBUTION OF PEPSI At PEPSICO INDIA HOLDING PVT.

LTD A Study Project Submitted to Sinhgad Institute of Business Administration & Comp uter Application in partial fulfillment of the Award of PGDM COURSE 2009 2010 Su bmitted by Raju Kumar sagar Project Guide Prof. Vaibhav Kale SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND COMPUTER APPLICATION, LONAVALA 1

DECLARATION I hereby declare that this project entitled- HOUSEHOLD DISTRIBUTION OF PEPSI sub mitted in partial fulfillment for the award of the Post Graduate Diploma In Mana gement, is a bonafide record and no part of this project has been submitted by m e, for any other degree, diploma or for any other title. (Raju Kumar Sagar) 2

PREFACE Summer Training is an integral part of the PGDM Degree Curriculum and the studen ts of Management have to undergo a training session in a Business Organization f or at least 60 days to gain some practical knowledge in their area of specializa tion as well as some working experience. In globalization process, the rush of m ultinationals into the Indian market has become a common phenomenon. For the sur vival in the market, marketing is playing a vital role and even has become a nec essity for such business firms. Branding, pricing promotion, quality, distributi on, service and customer have become vital components of marketing and most of t he business firms are realizing that if they dont have competitive strengths, the y can not survive. The undertaken project is one of its kinds and is a smart and bold step taken by PEPSICO INDIA HOLDING PVT. LTD to penetrate into the markets . 3

ACKNOWLEDGEMENT I, MR. Raju Kumar Sagar, have great pleasure in presenting my project report on H OUSEHOLD DISTRIBUTION OF PEPSI as partial fulfillment of PGDM COURSE programme un der AICTE at Sinhgad Institute of Business Administration and Computer Applicati on (SIBACA), Lonavala. I would like to thank Mr. N.K.PRASAD, the Mgr. of HR Depa rtment, for his valuable guidance. Also, I would like to thank the Sr.Customer E xecutive, Mr. Samarandra Kumar Singh, who guided me at every step during the cou rse of the project and gave their valuable suggestion which led to the successfu l completion of the project. I am extremely grateful to the all executive employ ees and head of department, because without whose support and co-operation, the project would have been simply impossible. I am thankful to Lumbini Beverages Pv t. Ltd for placing me as a trainee and giving me an opportunity to be of some us e to the organization. Last but not the least, I am thankful to our Director, Mr . Prag Kalker and Placement Cell to gave me this opportunity for completed my pr oject in Pepsi (Lumbini Beverage Pvt. Ltd) due to which, I applied my theoretical knowledge in practically as well as learns the various things which would be of use in the near future. (RAJU KUMAR SAGAR) 4

INDEX S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Objectives Topic Executive Summary Introduction Company Profile Research Methodology Data Analysi s and Interpretation Observation and Findings Recommendations & Suggestions Conc lusion Annexure Bibliography Page 6 7-8 9-12 13-37 38-44 45-56 57-58 59-61 62-63 64-66 67-68 EXECUTIVE SUMMARY 5

In this summer training project report, I would like to brief on various portion of the report .this report is on the topic Household Distribution of Pepsi covere d some of the following important subtopics. The first subtopic is the brief stu dy of History, Types of Soft drink and Different types of soft drinks in India. Second subtopic is Company Profile i.e. Company Profile - In this section there is a detail about Product, Price, and Marketing Strategy etc. Third section cont ain detailed study of existing Household Distribution of Pepsi i.e. in this sect ion all about Survey which done. Though Observation and findings on the basis of the questionnaires which is filled by Retailers. Through discussion and persona l interview. Last but not the least, in this section Suggestion taken by Retaile rs, My Point of view and Bibliography is given. 6

CHAPTER # 1 OBJECTIVE OBJECTIVE OF THE PROJECT 7

1. 2. To have an overall view of the Household Distribution of Pepsi. To get a first h and knowledge as regards to the proper implementation of the Household Distribution in Hajipur and its preparedness to meet the new challenge s in the area of Household. 3. 4. 5. Pepsi. To examine the implementation of Hou sehold Distribution in Retail Shops. To recognize the Strengths and weaknesses o f Household Distribution of Pepsi. To Know the Retailer Comments or Suggestion o n Household Distribution of 8

CHAPTER # 1 INTRODUTION DIFFERENT TYPES OF SOFTDRINK IN INDIA PEPSI 9

COCA COLA

CAMPA COLA

FROOTI

PEPSI Type Manufacturer Country of Origin Introduced Related products Cola PepsiCo, In c. United States 1903 Coca-Cola RC Cola Pepsi-Cola, commonly called Pepsi, is a cola soft drink produced and man ufactured by PepsiCo. It is sold worldwide in stores, restaurants and from vendi ng machines. The drink was first made in the 1890s by pharmacist Caleb Bradham. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years, including Diet Pepsi, Pepsi Max, Pepsi Samba, Pepsi Blu e, Pepsi Gold, Pepsi Jazz, Pepsi Next (available in Japan and South Korea), and Pepsi Easter Hop. COCA COLA Type Manufacturer Country of Origin Introduced Related products Cola The Coca-Co la Company United States 1886 Pepsi RC Cola Coca-Cola is a cola (a type of carbonated soft drink) sold in stores, restaurant s and vending machines in more than 200 countries. It is produced by The Coca-Co la Company (NYSE: KO[1]), which is often referred to as simply Coca-Cola or Coke . Coke is one of the worlds most recognizable and widely sold commercial brands. 10

CAMPA COLA Type Manufacturer Country Cola Pure Drinks & Campa Beverages India of Origin Introduced 1977 Related products Coca-Cola, Schweppes Cola, Peps i Cola Campa Cola was a soft drink brand in India until 2000. It was a market leader in some regions for a pe riod spanning several years until the advent of the foreign players Pepsi and Co ca-Cola after the liberalisation policy of P. V. Narasimha Rao Government in 199 1. Campa Cola was a drink created by the Pure Drinks Group Pvt. Ltd. in the 1970 s. The Pure Drinks Group pioneereed the India soft drink industry when it introd uced Coca-Cola into India in 1949, and were the sole manufacturers and distribut ors of Coca-Cola till the 1970s when Coke was asked to leave. The Pure Drinks G roup and Campa Beverages Pvt. Ltd. virtually monopolized the entire Indian soft drink industry for about 20 years, and then started Campa Cola during the absenc e of foreign competition. FROOTI Frooti is a drink available in and exported from India. It is available in both Tetra Pak packages and PET bottles, and is offered in 3 different flavours: mang o, Chatpatta Mango and guava. 11

Parle Agro Pvt Ltd produces Indias leading mango beverage brand, Frooti. It has u sed Tetra Pak packages and filling machines since 1985. Frooti is made with wate r, mango pulp, sugar, citric acid, ascorbic acid and approved colouring and flav ouring. It is marketed as the leading on the go drink in India 12

CHAPTER # 2 COMPANY PROFILE INTRODUCTION OF PEPSI Type Founded Headquarters Key people Public (NYSE: PEP) 1965 Purchase, New York, USA Indra Nooyi, Chairwoman, President & CEO 13

Industry Products Food and beverage Pepsi Tropicana Products Gatorade Lays Doritos Frappuccino (f or Starbucks) Mountain Dew Revenue Operating income Net income $35.137 billion USD (2006) $6.44 billion USD (2006) $5.64 billion USD (2006) 16. 06% profit margin Employees 153,000(2005) PepsiCo, Inc. is currently one of the most successful consumer products company in the world with annual revenues exceeding $30 billion and has more than 480,00 0 employees. PepsiCo, Inc. began as a successor to a company incorporated in 193 1, known as Loft Inc. Once known as Pepsi-Cola, the company expanded its busines s and adopted its current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger dramatically increased PepsiCos market potential and set the founda tion for the companys tremendous growth. 14

PepsiCos products are recognized and are most respected all around the globe. C urrently, PepsiCo divisions operates in three major US and international busines ses: beverages, snack foods, and restaurants. In each of these businesses, Pepsi Co has attained a leadership position as being the world leader in soft drink bo ttling g, the world largest snack chip producer, and the world largest franchise d and company operated restaurant system. The corporations increasing success ha s been based on high standards of performance, marketing strategies, competitive ness, determination, commitment, and the personal and professional integrity of their people, products and business practices PepsiCos overall mission is to in crease the value of our shareholders investments through sales growth, investme nts and financial activities. PepsiCo believes their success depends upon the qu ality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity. HISTORY OF PEPSI PepsiCos beverage business was founded in 1898 by a pharmacist named Caleb Brad ham who created a special beverage, a soft drink, in the back room of his drug s tore in New Bern, North Carolina. This new soft drink called "Brads Drink" had a unique mixture of kola nut extract, vanilla and rare oils. 15

Caleb began to advertise his new creation with the theme "Exhilarating, Invigora ting, Aids Digestion" and renamed it as "Pepsi-Cola." Caleb Bradham began his co la operation in 1902. The Pepsi Cola Company was headquartered in the back room of his drug store where he packaged the syrup for sale to other soda fountains. The business increased, and on June 16, 1903, "Pepsi-Cola" was officially regist ered with the US Patent Office. And as a result, Caleb Bradham began to franchis e Pepsi-Cola to many independent investors. By the end of 1910, Pepsi-Cola was f ranchised in 24 states. Until World War I, Pepsi-Cola Company achieved 17 years of success and a new theme was introduced, "Drink Pepsi-Cola. It will satisfy yo u." However, after the war years, Caleb Bradham suffered bankruptcy. As a result , Pepsi-Cola became a subsidiary to Loft Incorporated, a large chain of candy st ores and soda fountains. Today, Pepsi-Cola Company is a major division of PepsiC os corporate structure. Pepsi-Cola Company now produces and markets a wide rang e of beverages to retail, restaurants and food services in more than 191 countri es and territories around the world and brings in an annual revenue of $10 billi on. There are 200 plants in the US and Canada, as well as, 530 plants throughout the rest of the world, that produces Pepsi-Colas beverages. Since the creation of Pepsi-Cola in 1898, Pepsi-Cola Company has introduced 13 b everages that wear the Pepsi-Cola trademark. Five of Pepsi-Colas brand names: P epsi, Diet Pepsi, Mountain Dew, 7 UP, and Mirinda, each brings in annual revenue in consumer sales of $1 billion. In 1992, a partnership between Thomas J. Lipto n and Pepsi was formed. This partnership produces, markets, and distributes Lipt on Brew, Lipton Brisk and Lipton Fountain Ice-Tea. And in 1993, Pepsi Max a low calorie cola was created and introduced only for the international markets. Peps i Max is now produced in over 40 countries and is the third largest-selling cola brand outside the US. 16

PepsiCo is continuing to expand and introduce new alternative beverages in the m arket. There are four alternative beverages that are currently being tested in o ur market today. Mazagran, a cold sparkling coffee based beverage, Aquafina, bot tled water, and a low fat milk shake called Smooth Moos. The latest beverage was launched on May 22, 1996 in Philadelphia. Pepsi-Kona, a new cola is a combinati on of the Pepsi-Cola flavor and the Kona blend of coffee. PEPSICO IN INDIA PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $35 billion and more than 168,000 employees across the world. Its w orld renowned brands are available in nearly 200 countries and territories. Peps iCo entered India in 1989 and in the span of a little more than a decade, has gr own to become the countrys largest selling food and beverage companies. One of th e largest 17

multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. The group has built an expansive beverage, snack food and exports business and to support the operations are the groups 37 bottling plants in India, of which 16 are company ow ned and 21 are franchisee owned. In addition to this, PepsiCos Frito Lay snack di vision has 3 state of the art plants. PepsiCos business is based on its sustainab ility vision of making tomorrow better than today. Our commitment to living by t his vision every day is visible in our contribution to our country, consumers, f armers and our people. Providing consumers with balance and choice PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up Light, hy drating and nutritional beverages such as Aquafina drinking water, isotonic spor ts drinks Gatorade, and 100% natural fruit juices and juice based drinks Tropica na and Slice. Our local brands Lehar Everest Soda, Dukes Lemonade and Mangola co mplete our diverse spectrum of brands. PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market and was amongst the first companie s to eliminate the use of trans fats and msg in its products. It manufactures .Lays Potato Chips; Cheetos extruded snacks, Uncle Chips and traditional namkeen snac ks under the Kurkure and Lehar brands. Quaker Oats, Lehar Lites, low fat and roa sted snack options enhance the choices available to the growing health and welln ess needs of our consumers.

PepsiCo India has 40 bottling plants in India. PepsiCo generates direct employme nt for more than 4000 people in India and indirect employment for 60,000 people. India. 18 Sells more than 200 m illion crates annually PepsiCo generates estimated annual retail sales of U.S$70 0 million in

PepsiCos annual exports from India are worth over U.S$60 million. PepsiCo has i nvested U.S$1.5 million investment to cooperatively develop a comprehensive agro technology program in partnership with the Punjab g overnment to help farmers improve the quality and yield of their crops. PepsiCo supports sea weed cultivation projects in Tamil Nadu which provide members of womens self help groups with sustainable livelihoods. o has established zero waste centers and PET recycling supply chains. BOARD OF DIRECTORS 19 PepsiC

Dina Dublon Victor J. Dzau Ray L. Hunt Alberto Ibargen Arthur C. Martinez Indra K. Nooyi Sharon Percy Rockefeller James J. Schiro D. White Daniel Vasella Michael COMMITTES 20

Nominating and Corporate Governance Committee Members Ray L. Hunt, Chairman Vict or J. Dzau, MD Arthur C. Martinez Sharon Percy Rockefeller Daniel Vasella Audit Committee James J. Schiro, Chairman Dina Dublon Alberto Ibargen Compensation Committee Arthur C. Martinez, Chairman nt Sharon Percy Rockefeller Daniel Vasella Victor J. Dzau, MD Ray L. Hu

At present Mr. Rajeev Bakshi is the Chairman of PepsiCo India Holdings Pvt. Ltd. in India in which position he has responsibility for the companys business in India, Nepal, Bhutan, Bangladesh and Sri Lanka. PRODUCT OF PEPSI 21

PEPSI Crystal Pepsi Pepsi Blue epsi Lime Wild Cherry Pepsi MIRINDA Mirinda Sorbet Mirinda Orange

Pepsi Gold

Pepsi Twist

Pepsi ONE

Pepsi Max

Pepsi Diet

MOUNTAIN DEW 22

7 UP 7 UP 23

SLICE

TROPICANA

AQUAFINA

LEHAR SODA

Type Manufacturer Country of Origin Introduced Variants Related products Lemon-lime soda Cadburys (U.S.), PepsiCo (elsewhere) United States 1929 dnL, 7 U p Plus Dr Pepper, Sprite 7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the brand are held by Cadbury Schweppes Americas Beverages in the United Stat es, and by PepsiCo in the rest of the world (sublicensed to Britvic in the Unite d Kingdom and C&C in Ireland). Mirinda Mirinda is a brand of soft drink available in fruit varieties including orange, grapefruit, apple, strawberry, pineapple, banana, and grape flavors. It is part of a beverage area often referred to as the flavor segment, comprising carbonate d and non-carbonated fruit-flavored beverages. The orange flavor of Mirinda repr esents the majority of Mirinda sales worldwide. Mirinda is owned by PepsiCo and is primarily commercialized outside of North Ame rica. It competes with Coca-Colas Fanta brand and with flavor brands local to i ndividual countries. 24

As with most soft drinks, Mirinda is available in multiple formulations dependin g on the taste of individual markets. Mountain Dew Type Manufacturer Country of origin Introduced Citrus soft drink PepsiCo, Inc. U nited States 1964 (nation-wide) Diet Mountain Dew Caffeine Free Diet Mountain De w Caffeine Free Mountain Dew Mountain Dew Code Red Diet Mountain Dew Code Red Va riants Mountain Dew LiveWire Mountain Dew Pitch Black Mountain Dew Pitch Black I I Mountain Dew Baja Blast Mountain Dew MDX Mountain Dew AMP 25

Mountain Dew is a caffeinated, sweet, citrus-flavored soft drink produced by Pep siCo, Inc. It was invented in Marion, Virginia and first marketed in Knoxville, Tennessee in 1948, then by the Minges family in Fayetteville, North Carolina and across the United States in 1964. [1] When removed from its characteristic gree n bottle, Mountain Dew is bright yellow-green and semi-opaque. Slice Type Manufacturer Country of origin Introduced Related products Flavored soft dr ink PepsiCo, Inc. USA 1984 Sierra Mist, Sprite, Fanta, Teem Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introd uced in 1984, with the Lemon-Lime and Mandarin Orange flavors Aquafina Type Manufacturer Country of origin Introduced Water Beverage PepsiCo, Inc. Unit ed States 1994 Aquafina is a popular brand of bottled water. It was first distributed in Wichit a, Kansas in 1994, and was distributed across the United States , Canada , Turke y and Vietnam by 1997. As of 2003, it had become the United States top-selling bottled water brand in measured retail channels. 26

The water is standard tap water but goes through an extensive purification proce ss that includes charcoal filtration, reverse osmosis and ozonation. Aquafina is sold in 12-ounce, 500-mL (16.9-ounce), 20-ounce, 24-ounce, 1-liter, and 1.5-lit er bottles. PRICE 27

SKU 200 ml 300 ml 600 ml 2 Ltr. PEPSI BIB MIRANDA BIB 7UP,DEW BIB Can-330 ml Can Diet 330 ml Can Diet 330 ml 5+1 M/DEW CAN 330 ml 5+1 Slice 200 ml Slice 250 ml Slice Pet 500 ml Slice Pet 1000 ml Soda 300 ml Soda 600 ml Aquafina 750 ml Aquaf ina 1 Ltr.12 Aquafina 500 ml New MRP 7 10 20 48 20 25 10 10 22 45 6 12 20 13 8 Distributor Rate 141.00 206.00 436.00 391.00 2440.00 1220.00 610.00 441.00 545.0 0 448.00 361.00 208.00 206.00 488.00 495.00 118.00 258.00 260.00 215.00 160.00 Trade Price 150.00 216.00 450.00 405.00 450.00 560.00 460.00 370.00 220.00 216.00 498.00 505.00 128.00 268.00 270.00 224 .00 172.00 ABOUT PRICE Providing quality products at the lowest possible price has always been one of t he main concerns of Pepsi. For example, in some parts of the country a two-liter bottle of Pepsi cost 99 cents a decade ago and still does today. One of the way s weve been able to assist this effort is by expanding our use of inexpensive a nd recyclable plastic bottles. The soft drink industry today is confronted with a bewildering array of price increases. Our expenditures for labor, ingredients, transportation and more all continue to rise. The cost of 28

aluminum alone has increased dramatically since last year. Across our entire sys tem however, we have been cutting overhead and re-engineering our manufacturing process in order to keep our prices competitive. It is our policy to limit any p rice increases to the retail trade to the lowest possible extent. MISSION 29

PEPSICO MISSION Pepsi Is One Of The Safest Beverages You Can Drink Today. We follow regulations laid down by the indian Government which are amongst the worlds most stringent. PepsiCo India is in full compliance One Quality Standard For Pepsi Globally. 30

Indian regulations are amongst the worlds best. Over the past few years the sof t drink industry has worked with the Government of India, the scientific communi ty and NGOs to establish stringent science-based regulations. The new regulation s for carbonated soft drinks notified by the Health Ministry on July 15, 2004 ar e comparable to the most stringent international regulations, including that of the European Union. All PepsiCo products in India meet these regulations. Our be verages are safe Our products comply with the Prevention of Food Adulteration Ac t (PFA) directive on the use of water in the preparation of soft drinks. We also comply with the Bureau of Indian Standards (BIS) for packaged drinking water. W e use a six-stage water purification process to deliver this standard consistent ly. The pesticide question? Manufacturer of food products adds pesticides to their p roducts. Do we live in a pesticide free world? Pesticides are used to protect agricultura l crops from insects and pests. Minute quantities of these pesticides enter the ground water and remain in the agricultural crops which ultimately find their wa y into our food. Do pesticide residues compromise safety of food products? 31

Recognizing that pesticide residues are present in the food chain, international agencies like WHO and national authorities establish strict norms based on thei r experience and scientific research. Is the safety of soft drinks compromised b y pesticide residues? Independent government data has shown that pesticide resid ues present in soft drinks are at safe levels. ENVIRONMENTAL COMMITMENT PepsiCo has a corporation-wide commitment to the environment. PepsiCo is committ ed to providing a safe and healthy environment for their employees as well as fo r the community. PepsiCo is dedicated to designing, constructing, maintaining, a nd operating facilities that protects their people and their physical resources. 32

PepsiCo commitment to reducing the impact of their businesses on the environment through conservation, recycling, and energy use programs that promote clean air and water and reduce landfill waste. PepsiCos dedication and commitment to the environment is stated in their "Worldwide Code of Conduct". The "Worldwide Code of Conduct" defines PepsiCos commitment based on the following environmental p rinciples: 1. Business is conducted by complying with all applicable laws and re gulations and provide a safe and healthy environment. 2. Minimizing the impact o f our businesses on the environment through methods that are socially responsibl e, scientifically based and economically sound, such as recycling and conservati on. 3. Developing programs that promote clean air and water, energy conservation , and reduce land fill waste. 4. By supporting programs that educate, train and motivate employees to help the environment. 6. By cooperating with different org anizations and governments to find solutions that reduce pollution and by suppor ting environmental policies. MARKETING STRATEGY Pepsi is known in the marketing world as a convenience product, one that is purc hased without much consideration. So how is it decided which brand of soft-drink to buy? Annually, softdrinks are a $5 billion business, that is why the techniq ues for market ing and ensuring Pepsis purchase are so important. 33

In response to last years success of the Pepsi Stuff Campaign, on May 13, 1997 they unveiled "Pepsi Stuff 97." This is a promotion in which you buy Pepsi prod ucts, receive points on the boxes and cans, and then redeem them for items in th eir catalogue. Pepsi was very successful last year with this campaign, attractin g over 30 million participants. One major problem though was 21 year old John Le onard taking serious a television commercial that jokingly offered a military j et as a prize for 1 billion Pepsi points. Pepsi points were also purchasable, so Leonard rounded up five investors to purchase enough points to acquire the jet. Pepsi is now involve in a legal battle over this matter, even though the Pentag on has stated i t is not possible to buy one of the jets. Taking into account th e controversy of the jet, Pepsi has taken consideration to offer prizes in "Peps i Stuff 97" that are legally attainable. They include "Fantasy Stuff" prizes, s uch as throwing out the first pitch at a World Series game or feeding the ball t o Shaquille Oneal for a $25,000 slam-dunk. Success in the soft-drink market als o involves forming strategic alliances with companies to capture market share. P epsi has secured two major deals this year, one with Warner Brothers Internatio nal Theaters, and the other with Major League Baseball. The Warner Brothers all iance gives Pepsi exclusive pouring rights at all existing and projected Warner Brothers International Theaters. This includes 358 movie screens at 43 theaters in 6 countries, including: Great Britain, Spain, Germany, Portugal, Italy , and Japan. The significance of this deal according to Vince Gennaro, President of t he Fountain Beverage Division at Pepsi, "Nearly half on the worlds movie fans a re between the ages of 15 and 24. Together with Warner Brothers, we intent to i nject a wh ole new dimension of excitement into their regular trip to the multip lex." Pepsis five year deal with Major League Baseball gives them exclusive rig hts to use baseballs trademarks and team logos in al advertising, packaging, me rchandising, and promotions. Pepsi has forged a reputation as appealing to the t eenage audience, which is why Major League Baseball believes its deal with Pepsi will attrac t a younger audience, which was partially lost 34

due to aggressive marketing campaigns by pro football and basketball, as well as the 1994 strike. "Project Blue" is an international venture the Pepsi hopes wil l transform its international marketplace presence. It represents a $500 million investment, including the system-wide conversion of bottles and cans, coolers a nd vending machines, as well as trucks and other transports. The new design feat ures a striking blue "grid" background; bold vertical typography; and a three di mensional globe that evokes the companys "ball" icon. Currently Coca-Cola is as sociated with red, which is why Pepsi is attempting to create brand association and awaren ess with the color blue. According to John Swanhaus, Pepsi-Cola Compa nys Senior Vice President of International Sales and Marketing, "Blue is modern and cool, exciting and dynamic, and most importantly its a color that powerful ly communicates refreshment. Ultimately, we believe that owning blue will give u s a significant competitive advantage in the marketplace. Pepsi, with their aggr essive marketing, also engage in creative ventures. Three such case include an i nnovative web site, the worlds first commercial in space, and buying screensave r ad space in schools. The web site, called Pepsi World, combines breakthrough t echnology with powerful content. If features movie previews, origin al interacti ve games, first-run articles, new music, digital art, national Net-Promotions an d more. This site allows Pepsi to aggressively market their brand name in a revo lutionary way. The site is constantly being re-inven ted to remain at the forefr ont of the Cyberculture. Pepsi is also breaking ground by filming the worlds fi rst commercial in space. It is part of Pepsis partnership with the Russian Mir Space Station. For the ad, two cosmonauts film the deployment of a large-scale r eplica of Pepsis new blue can, which w as described in the "Project Blue" secti on. The can itself is actually a fully orbital spacecraft built by International Space Enterprises. It was built to withstand temperature swings of -100 F to + 200 F. A Canadian school board, faced with the problem of large-scale funding cu tbacks ,have sold to Pepsi, McDonalds, and Trident advertising rights to a scre ensaver program that mixes educational messages, motivational words, and corpora te advertising. This subject is controversial, but all advertisements must agree to include an educationally motivating 35

message. The Pepsi ad will have a slogan that encourages children to "develop a thirst for knowledge." COMPETITOR Coca-Cola controlled the Indian market until 1977, when the Janata Party beat th e Congress Party of then Prime Minister Indira Gandhi. To punish Coca-Colas pri ncipal bottler, a Congress Party stalwart and longtime Gandhi supporter, the Jan ata government demanded that Coca-Cola transfer its syrup formula to an Indian s ubsidiary. 36

Coca-Cola balked and withdrew from the country. India, now left without both Coc a-Cola and Pepsi, became a protected market. In the meantime, Indias two larges t soft-drink producers have gotten rich and lazy while controlling 80% of the In dian market. These domestic producers have little incentive to expand their plan ts or develop the countrys potentially enormous market. Some analysts reason th at the Indian market may be more lucrative than the Chinese market. India has 85 0 million potential customers, 150 million of whom comprise the middle class, wi th disposable income to spend on cars, VCRs, and computers. The Indian middle cl ass is growing at 10% per year. To obtain the license for India, Pepsi had to ex port $5 of locally made products for every $1 of materials it imported, and it h ad to agree to help the Indian government to initiate a second agricultural revo lution. Pepsi has also had to take on Indian partners. In the end, all parties i nvolved seem to come out ahead: Pepsi gains access to a potentially enormous mar ket; Indian bottlers will get to serve a market that is expanding rapidly becaus e of competition; and the Indian consumer benefits from the competition from abr oad and will pay lower prices. Even before the first bottle of Pepsi hit the she lves, local soft drink manufacturers increased the size of their bottles by 25% without raising costs. 37

CHAPTER # 3 RESEARCH METHODOLOGY RESEARCH METHEDOLOGY 38

Research is a planned and systematic investigation and analysis of factual data to check, verify or disapprove guesses, clues, assumption. It supplements the ex isting body of knowledge and widens the frontiers of understanding. Edwin.b.flip po defines research as systematic and purposive investigation of facts with the o bject of determining cause and effect relationships among such facts. Method is t he scientific way of doing things to achieve the desired result. In this particu lar study, the researcher has followed the scientific steps as enumerated below: SELECTION OF THE TOPIC Research on Household Distribution of Pepsi is a tool utilized to identify how t he consumer buy and in what situation they buy and ratio of the people who buy T hese activities should be provided to the employees to improve their Retailer. I n order to get a constructive outcome, the focus should be placed on needs as op posed to desires of the consumer. SCOPE OF STUDY: As the researcher was placed in PEPSICO INDIA HOLDING PVT.LTD, HAJIPUR for under taking research as a requirement of the partial fulfillment for the award of the Post Graduate Diploma In Management, the universe of the study is limited to PE PSICO INDIA HOLDING PVT.LTD, HAJIPUR. OBJECTIVE OF STUDY: The main objective/aim of the study is to assess the how to increase the sell of PEPSI. 39

METHOD OF STUDY: The entire survey was planned with a view to collect data and provides feedback to PEPSICO INDIA HOLDING PVT. LTD., HAJIPUR about its household distribution of pepsi. For that purpose, household distribution of pepsi questionnaire which is developed by me with the help of my internal guide and my training officer of PE PSICO. About 12 questionnaires were administered to the Retailer by the research er. Any confusion regarding the questionnaire was promptly attended to by the re searcher. 09 questionnaires were returned to the researcher. The collection of d ata took a little over one week. SAMPLING: The universe was PEPSICO INDIA HOLDING PVT LTD., HAJIPUR. All retailers were the respondents in the present study. The questionnaires were administered none ran domly to the various Retailer. TOOLS OF STUDY The study based on information given by Retailers. This is done with the intervi ewing different personnels discussion getting information from the document and f iles .The primary preparation is from the different books. SOURCES OF INFORMATION In order to get a proper flow of informational list has drawn as to from where t o get sufficient and authentic information on the subject. For the present study , following are the sources for the study. 40

PRIMARY SOURCES Personal interview Observation Personal discussion and interacti on SECONDARY SOURCES Annual report Files/ document Manual of the organization Bo oks & Project reports On the basis of this, a training programme was designed in order to train the front line executives and Managerial staff in order to impro ve their competencies and thereby improve production. DEFINATION Research is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is done with the help of study, obse rvation, comparison and experiment. It is a scientific and systematic search for pertinent information on a specific topic. There is a topic, Household Distribution of Pepsi which is our summer project to pic in Pepsico India holding Pvt. Ltd., Hajipur (Bihar). Through investigation w e are trying to find new facts and ideas training needs. RESEARCH TYPE The type of Research which is used in the Household Distribution of Pepsi is pur ely a Descriptive Research. This kind of Research includes surveys and fact findin g enquiries of different kinds. 41

RESEARCH DESIGN The survey was conducted for the Pepsico India Holding Pvt., Hajipur (Bihar). RESEACH PROCEDURE 1. First of all, a list of competencies, for the Retailer as well as the Consume rs was prepared, which would be grounds for assessing them. 2. 3. 4. Then, quest ionnaires were prepared, one for Retailer as well as the Consumers At Lucknow va rious Shop are there Grocery shop, Retail Outlet, Shopping mall etc. Here the Re tailer and the Consumers were interviewed and then the questionnaires were fille d by them. 5. After filled the questionnaires by the all Retailer, we collected the questionnaires paper by self. 6. 7. 360 techniques were used for assessing t he all Retailer and the Consumers The collected data was analyzed and concluded were drawn accordingly. This was all done in excel sheets and word pad wherein t he conclusions have been supplemented with pictorial representations. SAMPLE DESIGN This survey was conducted at Pepsico India Holding Pvt. Ltd., Hajipur which are a part of Pepsico India Holding Pvt. Ltd., India. 42

Universe: Hajipur (Bihar). Sampling Unit: Retailer, Shopping Mall, Grocery Shops at Hajipur , Bihar Sampling Size: Retailer: - 20 Primary Data: Primary Data which gave the researcher a base for framing the Ques tionnaires, which then highlighted all the important aspects for consideration. Primary data was collected in form of questionnaires with interview. Questionnaires: Questionnaires were the main instrument regarding primary data c ollection. A copy of questionnaires has been enclosed in the Annexure. In additi onal to the questionnaires method, data was also collected by interviewing the r espondents face-to-face. This ensured that the data collected through questionna ires was accurate. In the process of conducting interviews, observation the resp ondents body language, facial expression. This was true in case of Pepsico India Holding Pvt. Ltd., Hajipur, Bihar Thus in this way data collection was done. 43

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CHAPTER # 4 DATA ANALYSIS AND INTERPRETATION ANALYSIS OF QUESTIONAIRE 1. What type of consumer mostly comes to your Shop? a. Permanent 45

b.Temporary Alternative Permanent Temporary Number of customer 14 6 Number of customer 14 12 10 8 6 4 2 0 Permanent Temporary Number of customer 2. What class of Consumer mostly comes? a. Service Class b. Business Class c. Ot hers 46

Alternative Service Class Business Class Other Number of customer 11 7 2 Number of customer Service Class Business Class Other 3. What type of soft drink you sale, Pepsi or Coca cola? a. Pepsi b. Coca Cola 47

c. Both Alternative Pepsi Coca cola Both Number of customer 6 4 10 Number of customer 10 9 8 7 6 5 4 3 2 1 0 Number of customer Pepsi Coca cola Both 4. What is the mode of business transaction you are following in your store? a. Cash b. Credit c. Both 48

Alternatives Cash Credit Both Response of Retailer 7 6 9 %age 35% 30% 45% Response of Retailer 41% 32% Cash Credit Both 27% 5. At which time consumers purchase more? a. Season b. Offers c. Regularly Alter natives Season Response of Retailer 11 49 %age 55%

Offers Regularly 6 3 30% 15% R e s p o n s e o f R e t a ile r R e s p o n s e o f R e t a ile r 12 10 8 6 4 2 0 S eas onal O ffe rs R e g u la r 6. Does consumer buy any cold drink along with monthly house hold item? a. yes b . no Alternative Yes Number of customer 16 50

No 4 16 14 12 10 8 6 4 2 0 Y es No Num ber of c us tom er 7. What type of cold drink does a consumer prefer the most? a. Coca cola product b. Pepsi product c. Both Alternative Coca cola product Number of customer 9 51

Pepsi product Both 7 4 Num ber of c us tom er 9 8 7 6 5 4 3 2 1 0 Num ber of c us tom er Coc a c ola produc t P eps i produc t B oth 8. Whom do you prefer to deliver Pepsi at home? a. Regular Consumers b. Volume B ased Consumers Alternatives Response of Retailer %age 52

Regular Consumers Volume Based Consumers 8 12 40% 60% R e s p o n s e o f R e ta ile r 12 10 8 6 4 2 0 R e g u la r C o n s u m e r s V o lu m e B a s e d C o n su m e rs R e g u la r C o n su m e rs, 8 V o lu m e B a s e d C o n su m e rs, 1 2 R e s p o n s e o f R e t a ile r 9. Are all flavor of Pepsi available during summers? a. Yes b. No Alternatives Y es No Response of Retailer 14 06 %age 70% 30% 53

R e s p o n s e o f R e t a ile r 14 12 10 8 6 4 2 0 Y es , 14 No, 6 R e s p o n s e o f R e t a ile r Y es No 10. How much you are satisfied with the PEPSI product? a. Fully satisfied b. Par tially satisfied c. Not at all satisfied Alternative Fully satisfied Partially satisfied Not at all satisfied Number of customer 3 6 11 54

Number of customer 12 10 8 6 4 2 0 Fully satisfied Partially satisfied Not at al l satisfied Number of customer 11. Would you like to deal with the company in future? a. Yes b. No Alternative Yes No Number of customer 14 6 55

Number of customer 14 12 10 8 6 4 2 0 Yes No Number of customer CHAPTER # 5 56

OBSERVATION AND FINDINGS OBSERVATION AND FINDINGS Today, the aim of any business is to earn profit & making good relation with the consumer, Retailer wants to sell the product thats gives him good Profit with ho lding the consumer. According to the survey there are some the fact comes forwar d 1. 2. Most of the Retailer sells both Pepsi as well as coca-cola but there are some of the shop There are most of consumer who came in shop are regular they permanent as well as which are completely Pepsi or Coca-cola they dont sell other than that. temporary too. 57

3. In a retailer or grocery shop both the consumers comes service class as well as business The ratio of the consumer who buy on cash is higher than credit but not higher than credit Most of the consumer buys in season, after they think on off er and there are some of the The numbers of consumer who are purchasing pepsi ar e volume based consumer rather When a consumer comes in grocery shop they someti mes buy Pepsi. Most of the consumer gets delivery of its product on time. Pepsi is having 80% satisfied consumers which good for its growth. Most of the Retaile r want to deal with Pepsi in future also. class but ratio of business class is higher than service class. 4. 5. 6. 7. 8. 9. and cash. consumer who buys on regular basis. than regular consumer. 10. CHAPTER # 7 58

RECOMMENDATIONS AND SUGGESTIONS SUGGESTIONS BY RETAILER All flavors should be available in the peak season when it is demanded. More Off ers should be given on big pack (1.5L, 2 L). Competitive Prices should be there. The customer should be provided with the fridge for cooling purpose of cold dri nks. The customer should be provided hooding and glow sign board as a display to tell the consumer about the cold drink product that are sold their. 59

Delicacy Problem should be removed. Its is suggested by the most of retailers th e small pack of Pepsi should be available (150 ml/Rs 5). It is easy to sell in t he colonies. Launch more product and Product Line MY POINT OF VIEW To increase household distribution company should offer discount on family pack. Pepsi should do collaborative marketing with some companies which are playing

major role in house hold distribution. Pepsi should hire housewives to advertise cold drink.

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Pepsi should Introduce tetra packs (150 ml/Rs 5). Pepsi should introduce some mo re Flavours of its Product. Pepsi should give some tattoos to attract children ( age group 5 to 13). Pepsi should introduce PEPSI CLUB for Women for social gatheri ng.

CHAPTER # 8 61

CONCLUSION CONCLUSION PepsiCo India Holding India Pvt. Ltd. is one of the reputed companies amongst va rious cold drink Industry. PepsiCo is having different product with its product line. Pepsi has acquired a big share of market in India and in other countries b ecause of its competitive pricing, distribution system and through good customer relation. Like in other industry Pepsi is also having different competitors. In India Pepsi is having only one competitor that is coca-cola. As we know in summ er season demand of cold drink raised but in some cases it is unable to provide all flavors to its retailers. The quality of product is different in different c ountries. 62

Pepsi doesnt facilitate credit facility to its customer whereas customers have to provide credit facilities to its consumer so as to increase his selling and to maintain relation. Now, the President and CEO of Pepsi Indira Nooyi has announce d that there will be one quality for Pepsi all over and there will a symbol on a ll product of the Pepsi. This will help in increase the sale of Pepsi Product. D espite of all the strength and weakness it is also having some threats it is als o having Opportunity still to grow more and competitor with its competitor. Over all the company is a very good company and one of the leading and growing compa ny in India. 63

CHAPTER # 9 ANNEXURE QUESTIONNAIRE 1. Name of outlet? 2. What type of consumer mostly comes to your Shop? a. Permanent b.Temporary 3. What class of Consumer mostly comes? a. Service Class b. Business Class 64

c. Others 4. What type of soft drink you sale, Pepsi or Coca cola? a. Pepsi b. Coca Cola c . Both 5. What is the mode of business transaction you are following in your store? a. Cash b. Credit c. Both 6. Does consumer buy any cold drink along with monthly house hold item? a. yes b . no 7. What type of cold drink does a consumer prefer the most? a. Coca cola pr oduct b. Pepsi product c. Both 8. At which time consumers purchase more? a. Season b. Offers c. Regularly 9. Whom do you prefer to deliver Pepsi at home? 65

a. Regular Consumers b. Volume Based Consumers 10. Are all flavor of Pepsi available during summers? a. Yes b. No 11. How much you are satisfied with the PEPSI product a. Fully satisfied b. Part ially satisfied c. Not at all satisfied 12. Would you like to deal with the company in future? a. Yes b. No CHAPTER # 9 66

BIBLIOGRAPHY BIBLIOGRAPHY 1. www.pepsico.com 2. www.wikipedia.com 3. www.answer.com 4. www.google.com 5. w ww.pepsiindia.com 67

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