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CHAPTER – 1

INTRODUCTION TO THE STUDY

1.1 1.2 1.3

INTRODUCTION OBJECTIVE AND GENESIS IMPORTANCE

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1.1

INTRODUCTION “Marketing is the process of discovering and translating consumer

needs and wants into product and service specification; creating demand for these
product and services and then in turn expanding this demand -H.L.Hansen
Planning is the modern marketing concept starts with the consumers. Understanding
of the consumers is the first step in together to determination what the consumer
wants, how best to produce and sale the product, which can satisfy their wants and
also how to motivate the purchase of the product. Marketing is the process of
planning and executing the conception, pricing, promotion and distribution of
ideas, goods and services to create exchanges (with customers) that satisfying
individuals and organizational objectives Satisfying customer needs (creating
utility) through the exchange process Create a marketing mix (4 P’s)  Product 
Price  Promotion  Distribution (place) Marketing information is a critical
element in making effective marketing decision. The pace of technological
development and the globalization of trade mean that today’s environment changes
more quickly than ever before .Micro and macro environment sources –along with
internal data and marketing research –provide unprocessed data. Therefore it is of
the utmost importance for an organization to have a well developed information
gathering system In order to create useful information, data (unprocessed facts
and figures) must be collected and organized in some meaningful pattern.
Information is data that have been deliberately selected, processed and organized
to be useful .organisation gathers and store a vast amount of information as a
regular part of conducting their business. Internal information comes from within
the organization itself (internal environment).External information has been
generated from data outside the organization. The external 2
environment of marketing include many diverse information sources, such as
demographic, economic, legal technological and competitive The focus of the survey
is to take a sample to depict the wider picture of present position of two major
players in the field of aerated drinks in India. India’s aerated drinks market
divided between two global players PepsiCo and coca-cola both having set up
operations in India less than ten years ago. West and north India accounts for
more than 60% of the national market. More than 70% of the demand originates in
urban areas. The market is divided between coke, which leads in total volumes, but
not in any category, and Pepsi which leads in the cola segment, but has 45% of the
total market share. The product formats have expanded in recent times: returnable
glass bottle 300ml, PET bottles for outside consumption in 1 litt./1.5lit./2lit.
Packs, personal packs 600ml, aluminium cans 330ml and vending machines. Cola and
orange are the main consumer flavours Further,both pepsi and coca cola are
pursuing a generic approach of company owned bottling operations (COBO) and
franchise owned bottling operations(FOBO) ,are setting up integrated lines for a
range of carbonated beverages ,club soda and pure drinking water in plants built
to global standards

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1.2

OBJECTIVE AND GENESIS OF THE PROJECT

1) The basis of this project is the non availability of concrete knowledge about
the position of these two brands in Ranchi 3 region. The reason was that adequate
survey of out lets had been not carried out in the past in this area. So this was
the main reason for conducting study in this area. Also the timing of this project
in this area was quite appropriate as it was the peak period of sales of cold
drinks being the summer season. And thus it was more so necessary for Pepsi to
know that by how degree it has to improve its performance in this area with
respect of its competitor brands coca cola in this area. Also this project was
also considered to be useful in gauging the distribution patterns of these two
brands of this area. It helped in finding out the points of slackness in the
distribution channels of this area. 2) The focus of this project is to find out
yearly sales of brands of cold drinks of the pepsi and its competitor coca cola by
the outlet in Ranchi 3. It implies determining the share of market owned by both
the brands of cold drinks. It helps the describing the kind of competition between
these two giants of cold drinks in this area and thus concluding who is the market
leader of this area. Also the project aims at observing the magnitude of
facilities provided by these two companies in the outlets of this area, viz. glass
freezers and freezers without glass. It can help in determining the level of
concerns of these companies towards their retailers. Also it can show that whether
these facilities have an effect on their sales or not. Apart from that, another
objective of the project was to observe the number of outlets having the
billboards and painting on their walls advertising these two brands .It helped in
knowing the publicity consciousness of these brands in this area and its effect on
their sales particular outlets. in that

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1.3

IMPORTANCE
The training in the organization is very important for a student who is undergoing

with such course. This course is not the answer for all the problems, which arises
in the practical field. There is no certain formula for any particular problem,
but the aim of this study is to develop the ability of decision-making. Right
decision at right time itself helps an organization to run smoothly. This training
in an organization gives an idea how decisions are taken when any problem comes to
an Executive. So the way to problem solving, right decisions making and knowledge
of different type of making activities give much importance to the study. Though
in 45 days it was not possible to understand it in depth but an overall idea could
develop.

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CHAPTER – 2

ABOUT THE ORGANIZATION

1. 2. 3.

S.M.V BEVERAGES LIMITED STRUCTURE OF THE ORGANIZATION PRODUCT MIX a. INGREDIENT

4. 5.

PRODUCTION PROCESS SWOT ANALYSIS

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2.1

S M V BEVERAGE LIMITED

S.M.V. Beverage Pvt. Ltd, Adityapur, (Jamshedpur) a medium sector enterprise,


located amidst beautiful surroundings, on the TATA Kandra road in the Adityapur
Industrial Area, and producing PEPSI range of bottled soft drinks, viz. Pepsi, 7
Up, Mirinda, Teem, Mirinda Lemon, Mirinda Apple and Lehar Slice and had become a
household word in the Jharkhand State symbolizing achievement and advancement over
the years. Steel City Beverages was established in 1967 and production commenced
in March 1969. At the very outset the company installed state the art machines and
technology, for the production and bottling of soft drinks. The bottling plat with
a capacity of produce bottle 220 per minute is totally automatic and also had a
modern state of the art inter mix machine for binging forth the right blend of
flavors. The company continuous to adopt and innovate technology in keeping with
its policy of constant quality improvements. With the advent Pepsi Food Limited
for the production and sales of Pepsi range of soft drinks for Jharkhand. The
company symbolizes self reliant in technology and ranked as the Best bottling
company in the country in terms of Quality, Efficiency, Sale, Productivity and
KRD. Till 1998, it was under the guidance of its Chairperson, Smt. Kusum Kamani
and the able stewardship of its Managing Director, Shri. Nakul Kamani, the Co. has
consistently bagged on numerous occasions, awards for Quality Assurance and
Productivity, in 1993 it bagged top honors for being the best Quality conscious
Plat amongst all Pepsi Bottling companies in India. In March 1999, Steel City
Beverages Ltd. was taken over by Mr. S. K. Jaipuria from Mr. N.D. Kamani, along
with Rushabh Marketing Ltd., a marketing unit. Mr. S.K. Jaipuria started running
this plant very successfully. He was very much enthusiastic to increase the
production and sale and to capture the whole market of Jharkhand. He established
another plant in the name of SMV Beverages (Jsr) and increased the production from
this new plant. The capacity of this new plant is 600 bottles per minute.
Simultaneously,

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another marketing, company came up in the name of Hyderabad Marketing Company,
Which is catering the need of whole of Jharkhand state. The Company’s highly
sophisticated plant and quality control laboratory along with the dedication and
enterprise of its employees is more than evenly matched by the management’s sense
of understanding and compassion that has insured the company’s progress with every
passing day. The company has a sale of more than 24 million bottles. It has
maintained and nurtured a vast network of distribution for its product in
Jharkhand and currently holds way over more than 50% of the states consumer soft
drinks market with an estimated growth annual turnover of over Rs. 10 corers. The
company is currently in pursuit of the coveted ISO9002, which it is confident of
achieving and would hence become the first food product factory in India to do so.

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2.2

STRUCTURE OF THE ORGANIZATION

For the every concern a structure is necessary on which the complete organization
should be founded. To have a structure is not a choice of the organizer. The
choice is only of the form and pattern of the organization. Planned organizational
structure may be proved logical clear – cut and streamlined in order to meet the
present requirements. Otherwise it will merely be a makeshift arrangement and the
management in rendered difficult and ineffective because organizational structure
affects everyone in the organization. A good organizational structure facilitates
efficient management and the operation of enterprise and it encourages growth. It
helps organization to reach it’s predetermined goal. In order to make the
organizational structure more effectible one structure that can meet the demand of
various factors namely environment, technology, size and people. SMV Beverages
(Jsr) has duly considered these factors to build and efficient organization
structure. As it is a medium scale enterprise and fully automatic, the manpower
requirement is less. Hence, like any contemporary company, it has adopted a flat
structure. Following are the major features of the organizational structure of SMV
Beverages Ltd. • • • • • • • • • Clear lines of authority. Adequate delegation of
authority. Minimum Managerial skill level. Unity of Directors. Applications of
ultimate responsibility. Span of control. Simplicity. Flexibility. Due
consideration for top groups.

SMV Beverages (Jsr) has a management board headed by its’ unit manger & Director
Mr. P.S. Kumar. He is responsible for overall policies regarding managerial
decisions and all

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the executive functions. He looks after all the functional departments like
productions, Sales, account, personnel & purchase. Every department is headed by
their respective managers who sends reports to the unit manager and are
responsible to him in every sense of working. The Plant Manager is the head of the
production department. He looks after production i.e. bottling process,
inspection, and storage of new materials and maintenance of the plant as a whole.
He also Heads the quality control department through quality control manager. The
controller of accounts heads the accounts department; under him there is a chief
accountant. The purchase officer is in charge of all purchase activity of concern.
PAC (Product availability Co-ordinator) is in charge of shipping department,
coolers and PMX. Personnel department is headed by the personnel manager and looks
after the function of administration, industrial relation, legal jobs, security
welfare etc. The HMC Hyderabad Marketing Company In these two units, the Head of
Sale and Marketing is in charge of all the marketing activities i.e. sales
promotion, publicity, advertisement, market survey, and shipping. Though his main
function is to have a control over the outlets distribution, Sales Manager is
assisted by sales executive and sale supervisor.

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ORGANISATION CHART OF SMV BEVERAGE (JAMSHEDPUR) (A UNIT OF SMV AGENCIES (P) LTD.)
DIRECTOR

Personnel Dept.

Plant Manager

Purchase Dept.

PMT/Sivi Cooler Finance Dept. Dept.

Logistic Manager

Shipping Dept.

Personnel Manager

Production Manager

Purchase Manager (Equip) Finance Mng. Manager

Shipping in Charge Shipper Staff

Personnel Officer Staff Security Dept.

Maintenance Engineer Blow Moulder (O & M) Engg. Laboratory Store Supervisor Staff

Asst. Purchase Staff

Account Officer Asst. Account Officer Accountant Jr. Account Executive Cashier

Electrical Engg. Executive

Manager (Q.C) Chemist Asst. Chemist

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2.3

PRODUCT MIX

The product Manufactured by SMV Beverages Pvt. Ltd, are very limited in range as
it is not independent to diversify its products when required. This is because it
is a unit of PEPSI FOODS LIMITED, which supplies the concentrates for different
brands of soft drinks. • • • • • • • PEPSI (Cola Flavor) MIRINDA (Orange, apple &
lemon flavor) 7 UP (Clean lemon flavor) SLICE 30:70) SODA EVERNESS PEPSI AHA PEPSI
BLUE (mango flavor, having concentration of Alphansol, Totapuri Mango

The chief consumers are young masses. Beside direct consumer, hoteliers,
restaurants owners and various other soft drinks peddlers also use them. Thus it
can be said that these are the product for mass consumption.

2.3.
PEPSI SL.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

(a)

INGREDIENT
UNIT SIZE Theoretical Sugar Excess Sugar Total Activated Carbon Hyflo supercel
Filter plastic to be used Hyflo supercel for precoat Brin on which water
calculated Water to be taken into tank Water to be taken for washing 1 1128 25
1153 2.3 2.3 10 7 NA NA NA 2 2256 25 2281 4.6 4.6 10 7 65.5 1200 800 3 3384 25
3409 6.8 6.8 10 7 65.5 1800 1250 4 4512 25 4537 9.1 9.1 10 7 63.5 2600 1450

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7 UP SL.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

UNIT SIZE Theoretical Sugar Excess Sugar Total Activated Carbon Hyflo supercel
Filter plastic to be used Hyflo supercel for precoat Brin on which water
calculated Water to be taken into tank Water to be taken for washing

3 1297.2 25 1322.2 2.6 2.6 10 7 72 500 300 3 1188.6 25 1214 2.4 2.4 10 7 70 500
400 3 1428.3 25 1453.3 2.9 2.9 10 7 70 600 600

6 259.4 25 2619.4 5.2 5.2 10 7 72 1000 600 6 2377.2 25 2402 4.8 4.8 10 7 71 1000
800 6 2865.6 25 2881.6 5.8 5.8 10 7 69 1300 1000

9 3891.4 25 3916.6 7.8 7.8 10 7 72 1500 900 9 3665.8 25 3591 7.2 7.2 10 7 71 1500
1200 9 4284.9 25 4309.9 8.6 8.6 10 7 67 2100 1450 12 4754.4 25 4779 9.6 9.6 10 7
71 2000 1600

Mrinda Lemon SL.NO UNIT SIZE 1. Theoretical Sugar 2. Excess Sugar 3. Total 4.
Activated Carbon 5. Hyflo supercel 6. Filter plastic to be used 7. Hyflo supercel
for precoat 8. Brin on which water calculated 9. Water to be taken into tank 10.
Water to be taken for washing Mrinda Orange SL.NO UNIT SIZE 1. Theoretical Sugar
2. Excess Sugar 3. Total 4. Activated Carbon 5. Hyflo supercel 6. Filter plastic
to be used 7. Hyflo supercel for precoat 8. Brin on which water calculated 9.
Water to be taken into tank 10. Water to be taken for washing Notes: • • •

Please drain excess water after precoat filter press. Maintain raw syrup tank
tempt. 81 °c+/-2 °c Total A. Carbon contact time 30 minutes at 81 °c+/-2 °c 13
• • •

Hot leaching must be done after filtration. Simple syrup tempts. Must be
maintaining between 21 °c – 25 °c after P.H.E. Hot water must be passed through
all equipments before start up of syrup preparation.

STEPS TO BE FOLLOWED
• • • • • • 2 °C • filter press. • minutes. • • • • Check clarity of raw syrup
through 0.45 micro- filters. If OK start syrup transfer of raw syrup to filtered
syrup tank. Re-circulate raw syrup through filter press to raw syrup tank for 15
Precoat the filter press and drain excess water after precoat from Hot water (85-
90) to be passed through all equipments.

Take initial treated water (as per syrup making chart) into raw tank.

Raise the tempt + - of water up to 81 °C+/-2 °C Add sugar into raw syrup tank as
per syrup making chart. Wait for tempt. Compensate after sugar addition.

Add activated carbon of hyposupercel & maintain 30 min. contact time at 81°C+/-

Maintain raw syrup tempt. After P.H.E. between - 21 °c to 25 °c. Do not reaching
after complete transfer of raw syrup.

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2.4

PRODUCTION PROCESS

The bottling process at STEEL CITY BEVERAGES is automatic. The various units of
this plant are: WATER TREATMENT UNIT Water in the STEEL CITY BEVERAGES LTD. Come
from Sitarampur dam and is stored in a reservoir. Before ensuring production, this
raw water is treated in the water treatment plant.The process involved is known as
coagulation process. Main chemicals, which are used, are ferrous Sulphate (FeSo4),
calcium hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all
these chemicals in the treatment tank and becomes turbid. All impurities get
settled at the base and remove the turbidity. Next it is sent to a sand filter to
remove the turbidity. Then it is sent to the CARBON TANK where all the
microorganism and chlorine is removed the water so obtained is completely free
from any king of impurity and is ready to be used in further processing the
maximum alkalinity is maintained until it is as much as 50 p.p.m. ROLL CONVEYOR
This automatic operation machine takes the dirty empty bottles for washing. A
person is required to put the empty bottles on the roller conveyor.

CLEANING (THE BOTTLES) UNIT

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Used bottles returning from the market are stealthy. It is completely an outer
process, which takes place within a machine. The machine has three compartments.
Bottles for washing placed on conveyor come inside the machine and get successive
treatment. Bottles are treated with 4% caustic soda in the frost compartment at
the temperature, 100115F. Next these are conveyed to the second compartment where
bottles are again treated with 2% caustic soda at the temperature 120F. In the
third compartment bottles are treated with sort ware. Time duration in the each
compartment is 10 minutes. CONVEYOR CHAIN These are for the movement of sterilized
empty, filled and crowned bottles. LIGHT SCREEN To check if any dirty part is
unwashed in the sterilized bottles, which are coming through conveyor chain? This
checking is again crowning. SYRUP ROOM Syrup room is situated on the first floor.
Here syrup is prepared from filtered water, sugar and the concentrate. The room is
well equipped with several tanks and filter press. The first one is heating tank
is which syrup is actually prepared. Calculated amount of sugar along with
concentrate and water is heated up to 850C. Thus a saturated solution is prepared.
Next it is sent through a machine called filter press. Syrup is filtered here.
Filtered syrup is next passed through a Para – flow cooler, where by recycling and
glycol method, the temperature of the syrup is cooled down. Cooled syrup is then
stored in a syrup tank. Syrup then comes to the traumatic machine. Here syrup is
mixed with carbonated water under pressure in a definite proportion.

FILLER MACHINE Washed empty bottles enter into this through conveyor chain and
then they are filled with exact quantity of beverages. 16
CROWNER The filled bottles are crowned with metallic caps to protect the purity of
content. Then the bottles are given the batch no., year, etc. with the help of
laser machine.

Thus the whole process from washing to crowning is automatic. The filled bottles
are lifted manually from conveyor and placed in crates. The bottling of beverages
is carried out at a rate of 240 bottles/min. The new bottling unit has been
established in order to pace the bottling process in the month of February. After
establishing the now production unit the rate per minute raised to 600. Before it
was 440 bottles per minute.

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Bottle Process Layout
Roller Conveyor

Conveyor Chain

Bottle Washing Machine

Dirty Empty Bottles in Crates

Empty Washed Bottle Inspection Bottles Loaded

Coding Machine Filter Machine Filter Bottle Inspection Empty Crates

Filled bottle Inspection 18 Ware House


Pet Bottle Process Chart
Treated Water Sugar Bottles Flavor Concentrate Simple Syrup Airveyor

Syrup Rinser Treated Water

Treated Water

Filter

Treated Riser

Cap

Hopper

capper

Water

Warmer

Chemicals

labeller

Palletiser

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2.5

SWOT ANALYSIS

STRENGTH:
Comparative study of the two close rivals pepsi and coke in the soft drink market
is necessary for taking the future course of action for the improvement in the
product line and services 1. 2. 3. It also shows the actual market share of the
company New outlet opening and sales promotion has also been done during the
project training Many problems has been removed during this project training

WEAKNESS:
1. 2. 3. 4. 5. 6. Sales promotional activity is lacking as compared to its nearest
rival in the market. Brand Pepsi of cola flavour is its one of the popular product
lagging behind with its nearest competitor only due to less thrilling test More
emphasis is given to the fat dealers only. In cola flavour segment Thumps up is
the winner so Pepsi cola flavour should be improved Schemes and other sales
promotional item are not reaching to the small outlets Glow shine board, stand,
umbrella and other sales promotional items have not reached to the Ranchi 6 market
for the last two years as coca cola providing these items on regular basis. 7. 8.
The concept of fat dealers is good for the rural and far flung area but it is
harmful for the urban areas. Number of van should be more so that the frequency
can be increased.

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OPPORTUNITIES:
1. There is a huge potential in Ranchi 6 and its surroundings rural area for
tapping up this, promotional camps schemes and other promotional activities must
be carried out. 2. 3. It should give more incentives to the dealers in the rural
areas, where there is a huge market potential. Many shops and outlet holder do not
keep Pepsi and its product only due to the commitment those companies have made
during the peak season but it did not fulfilled thereafter so it is necessary to
pay attention towards this. 4. Apart from sponsoring films, cricket and music it
should also sponsor to different fashion shows, quizzes and debates in schools and
colleges.

THREATS:
1. 2. 3. Thumps-up has the biggest share in cola flavour where as 7up is facing
stiff competition from its counter part sprite of the coca cola. Coca-cola’s
expenditure on sales promotional activity and advertisement is far ahead than the
SMV. One of the biggest threat to the SMV BEVERAGES is that distribution channel
in the rural area is not up to the mark.

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CHAPTER –3

AN OVERVIEW OF SOFTDRINKS INDUSTRY

3.1 3.2 3.3

Soft Drinks Industries in India History Profile of S. M. V. Beverages

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3.1

SOFT DRINK INDUSTRIES IN INDIA

India had “strange bedfellows” kind of relationship with MNC’s, which gave a
significant opportunities to drink industry of Indian when coco-cola decide to
wind up its operations in 1977 rather than bowing to the India govt. insistence
on: • • • Dilution of equity, as the Govt. felt that the lots of foreign currency
were being drained. Manufacturing of the top-secret concentrate (syrup in India).
Disclosure of the chemical composition of the essence.

After the winding of Coca-cola a large space was left in the vast soft drink
market and vista was opened for any company with the requisite, technical
marketing and organization skill. Three or four groups of Indian bottling
companies had the requisite production capacity started their own branch of COLA,
LEMON &ORANGE flavors, but failed to achieve their respective goals on the
national prospective. OWNER COMPANY Mc Dowell Parle Pure Drinks Modern Bakeries
Double Coal Lipton Punjab Agro Ltd. PRODUCTS Thrill, Rush, Sprint, Kissan Gold
Spot, Limca, Mazza Campa-Cola, Campa-Orange, Campalemon, Tripp. 777,Tingler Sky,
Lemon, Orejoy Lemon, Mcman Soda Tree top Vol fruit

Their well equipped bottling plants and the distribution networks were of no use
until 1977 when they developed a new formula to survive and they gradually came up
with Lemon, Orange and Coal Flavors. No doubt in this era the race winner is Pepsi
with its another product 7up Mirinda and Mountain Dew Under its umbrella.

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Parle products viz, Gold Spot and Limca became the market leader in their
respective segments. Thumps up was the front-runner of Parle brands blazing its
way bearing the slogan “Happy times are here again” indicating the coke
replacement. Thumps up to very great extent retrieved the coke addicts from the
so-called “Cola Shock” of “Coladepression”. In spite of all these, the soft drink
market is still has large gap, as claim by soft drink manufacturers. To fill the
gap, there may soft drinks concentrate and squashes flooding the market. The
Indian soft drink market basically offered three flavors, i.e. Orange, Lemon and
Coal now after long gap government of India invited Pepsi Cola Company in 1990 and
it pumped Rs. 1000/- Crores into India’s Operation. Pepsi Cola Company founded by
cable Brandham in 1890 at North Carloina in U.S.A. Now it is ranker 86th (1996) in
the world with an assert of around $25000 million, having its headquarter at New
York. Its in Indian it has more then 24 bottling plants of them 10 are COBO and
are FOBO of which one is in Jharkhand at Jamshedpur. Along with Pepsi Coca-Cola
also entered India in 1993 and has joined with Parle to do the business on Indian
soil to regain its lost prestige. A soft drink is a non-alcoholic beverage. It is
artificially flavored and it contains no fruitextracts of pulp. India, having a
population of over 1 billion (approximately) is potentially one of the largest
consumer markets in the worked possibly after China. Soft drink is a typical
consumer good for refreshment. It is one of the fastest mobbing items among the
all FMCG (fast moving consumer goods) products. Searching for the point of origin
of Indian soft drink, we first document on gold-spot, which was the first branded
soft drink in India. It was introduced by Parle during the later part of the 40’s.
Cola giant, coca cola was the first foreign soft drink to be introduced in India
in 1965. Coca-Cola made a very good beginning, as it had no competition to face.
The marketing people did not even require promoting coca cola, for it was sold
like the proverbial hot cake. The not so usual success of soft drink was due to
two main reasons: a) Absence of contemporary competitive brand, and

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b) Euphoric mage built up in the western countries preceded the entry in Indian
market. PARLE EXPORT (P) LTD later introduced in 1970 introduced Limca in cloudy
lemon segment. Before limca’s introduction, they had introduced Cola Pepino, which
they had to withdraw soon due to some confrontation with coca-cola. Before the
exit of coca cola many groups of Indian bottling company started producing their
own brand of coal, lemon and orange drinks, but failed to achieve their goals on
national basis. The exit of coca cola from India in 1978 accelerated the growth of
several Indian companies who had been striving since a long time gain a major
share in the Indian sort drink market. New soft drink in the form of tetra pack
entered the market, among which FROOTI, JUMP-IN and TREETOP were the prominent
ones. The year 1990 saw the coming of multinational PEPSI, which entered into the
Indian market 14 years after the exit of Coca-Cola. It had name, fame and edge of
being one of the best in the game and it offered stiff competition to PARLE and
COKE. In 1993, Mr. Ramesh Chauhan, Managing Director of Parle Exports sold all
rights to Coca-Cola and hence Parle was taken over by Coca-Cola. The product line
of Pepsi and Coca-cola are as follows: SEGMENT COLA ORANGE CLEAN LEMON CLOUDY
LEMON MANGO PEPSI PEPSI MIRINDA 7-UP, MOUNTAIN DEW MIRINDA LEMON SLICE COCA-COLA
THUMPS UP, COKE FANTA SPRITE LIMCA MAAZA

Though Pepsi has entered the Indian market only 13 years ago, it has captured a
big market share of soft drinks, removing the monopoly of the Coca-Cola, which
ruled for more than 12 years.

3.2

HISTORY

Caleb Bradhan, a new, North Caorlina druggist, who first formulated Pepsi-coal,
founded Pepsi Co’s beverages business at the turn of the century. Pepsi-cola began
selling 25
its production in 1934. Anthony Rossi as a Florida fruit packaging business
founded Tropicana in 1947. in 1995 Pepsi co acquired Tropicana, including the Dole
juice business, in Aug 1998. Gatorade sports drinks were acquired by the Quaker
Oats Company in 1983 and became a part of Pepsi co with the merger in 2001.
Gatorade is the first isotonic sports drink. Created in 1965 by researcher at the
university of Florida for the school’s football team, “ the Gators,” Gatorade is
now the World’s leading sport’s drink. Pepsi Co’s snack food operations had their
start in 1932 when two separate events take place. In San Antonio, Texas, Elmer
Doolin bought the recipe for an unknown food product- a corn chip- and started an
entirely new industry. The product was Fritos brand corn chips, and his firm
became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay
started his own business distributing potato chips. Mr. Lay later bought the
company that supplied him with product and change its name to H.W. Lay Company.
The Frito Company and H.W. Law Company merged in 1961 to become Frito-Lay, Inc.
The Quaker Oats Company was formed in 1901 when several American pioneers in oat
milling came together to incorporate. In Ravenna, Ohlo, Henry D. Seymour and
William Heston had registered the now famous trademark. Pepsi co merged with the
Quaker Oats Company in 2001.

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3.3

PROFILE OF SMV BEVERAGES PVT. LTD.

With the urbanization in 1991, about 13 years after the exit of Coca-cola from
Indian scene an MNC (Multinational Company) globally known as PCI (Pepsi Cola
International) entered the Indian market with its name PFL (Pepsi Food Ltd.). It
stated bottling its product in Bihar by Steel City Beverages, Jamshedpur, on 24 th
March 1991. Late D N Kamani installed this very bottling unit in 1969. the company
entered the soft drink with the introduction of Coca-Cola and used to cater for
the market of Bihar, Parts of Bengal, Orissa and Nepal. The company was the
pioneer of soft- drinks in Bihar. Due to urbanization and behavioral changes the
no. of soft drink consumer’s increase. The Steel City Beverages Ltd. Jamshedpur
was unable to meet the dead of supply as per the disability graph in north Bihar
due to this increase in the no. of consumers. To fulfill the demand in that very
region PFL established a plant in industrial area, Hajipur. Under the auspicious
guidance of Sri Charant Khialni in Dec. 1997 famous a Lumbini Beverages Pvt Ltd.
It is one of those bottling unit of PFL, which comes under FOBO (Franchise Owned
Bottling Operation) The product range produces by SMV beverages Pvt. Ltd. Is as
under:  Pepsi  Mirinda  Mountain Dew  7Up  Slice  Leher Soda(evervess)

27
CHAPTER –4 MARKETING ACTIVITY/MARKETING STRATEGY

4.1

Introduction

4.2
4.3 4.4 4.5

Market Analysis & Sales Promotion


Merchandising Policy Method of Merchandising Advertising Strategy of the
Organization.

28
4.1

INTRODUCTION

The soft drink being a FMCG has a wider scattered market. Thus to enable
concentrated effort of marketing activities in different scattered market, for
effectively setting the entire market is broken into the following segments. • • •
Route Market Home Market At Work Market

Route Market: Outlet in this market cater to those people who are engaged in
shopping, eating, outgoing to and from work, in amusement centers etc. Home
Market: Outlets in this market cater to people buying predominantly for home
consumption, either by case or loose bottles. At Work Market: Outlet in this
market cater to people working in offices, factories etc. an attempt is always
made to make soft drinks readily and conveniently available all day long while
people are actively working.

4.2

MARKET ANALYSIS & SALES PROMOTION

MARKET SURVEY :One of the most effective tools of the market research technique is
Market survey. We can know the actual facts and figures regarding. The product
through market survey. Any business organisation has to sell its product in the
market. The largest share of market a company has the better its profit margin
will be. To increase the market

29
share the company should come out with a product which best satisfies the customer
need. To find out the customer need and market demand the company should survey
the market and the process is knows as market survey. In the training period I was
engaged

MARKETING MIX OF PEPSI


PepsiCo is one of the world’s largest food and beverage companies, with 2007
annual revenues of more than $39 billion. The company employs approximately
185,000 people worldwide, and its products are sold in approximately 200 countries
through four P’s of the marketing mix which are following. 1. Product 2. Promotion
3. Place 4. Price

Pepsi Products
International Brand Pepsi Pepsi Caffeine Free Pepsi Diet Pepsi Caffeine Free Diet
Pepsi • Diet Pepsi Max • Jazz Diet Pepsi • Diet Pepsi Lime • Diet Pepsi Vanilla •
Pepsi Wild Cherry • Diet Pepsi Wild Cherry • Pepsi ONE
• • • •

Sierra Mist
• Sierra Mist • Diet Sierra Mist • Sierra Mist

Cranberry Splash • Sierra Mist Free Cranberry Splash Tropicana


• Tropicana lemonade

and punches • Tropicana Light lemonade and punches

30
• Tropicana

Twister

• AMP

Energy

sodas Ocean Spray (License)


• Ocean Spray juices • Ocean Spray juice

Traction • AMP Energy Elevate • AMP Energy Shot SoBe


• SoBe

drinks More
• Ethos

Water

(License) • Manzanita Sol • Slice • FruitWorks juice drinks

juice drinks, dairy, and teas • SoBe Lean diet juice drinks, dairy, and teas •
SoBe Life Water • SoBe Adrenaline Rush Aquafina
• Aquafina • Aquafina

FlavorSplash • Aquafina Sparkling Mountain Dew


• Mountain Dew • Diet Mountain Dew • Caffeine Free

Starbucks (Partnership)
• Frappuccino

ready-

Mountain Dew • Mountain Dew Red • Diet Mountain Code Red • Mountain LiveWire •
Mountain Voltage AMP Energy

Code Dew Dew Dew

to-drink coffee • Starbucks Doubleshot • Starbucks Doubleshot Energy • Starbucks


Iced Coffee

Lipton (Partnership)
• Lipton Brisk • Lipton Iced Tea • Lipton Pure Leaf

• AMP Energy • AMP Energy Sugar

Free • AMP Overdrive • AMP Relaunch

Energy Energy

Mug Root Beer


• Mug Root Beer • Diet Mug Root Beer

31
• Mug Cream Soda • Diet Mug Cream

• Life cereal • Quaker

Soda No Fear
• No Fear • No Fear Motherload • Sugar Free No Fear

Motherload Dole (License)


• Dole juices and juice

drinks • Dole Plus fortified juices Outside North America


• • • • • • • • • • • • • • • • •

Mirinda 7UP (International) Pepsi Limón Kas Teem Pepsi Max Pepsi Light Manzanita
Sol Paso de los Toros Fruko Everness Yedigun Shani Fiesta D&G (License) Mandarin
(License) Radical Fruit

Oatmeal Brown Sugar Bliss • Quaker Oatmeal Honey Nut Heaven • Quaker 100% Natural
cereal • Quaker Squares cereal • Quisp cereal • King Vitaman cereal • Quaker Oh's!
Cereal • Mother's cereal • Quaker grits • Quaker Oatmeal-toGo • Aunt Jemima mixes
& syrups • Quaker rice cakes • Quaker rice snacks (Quakes)
• Quaker

Chewy

Quaker Brands
• Quaker Oatmeal • Quaker Instant

Oatmeal • Quaker Oatmeal Breakfast Squares • Cap'n Crunch cereal

granola bars • Quaker Dipps granola bars • Rice-A-Roni side dishes • Pasta Roni
side dishes • Near East side dishes • Puffed Wheat • Harvest Crunch cereal •
Quaker Baking Mixes • Spudz snacks • Crisp'ums baked crisps • Quaker Fruit &
Oatmeal bars • Quaker Fruit & Oatmeal Bites • Quaker Fruit and Oatmeal Toastables
• Quaker Soy Crisps

32
• Quaker Bakeries

33
Indian Brand AMP Energy (More power to you) Aquafina (Make your body happy!) Dole
juice (Healthy juices on the go) Ethos Water (Helping children get clean water)
Gatorade (Is it in you?) G2(Off field hydration) Lipton Brisk (It’s bold. It’s
refreshing. It’s Lipton Brisk.) Lipton Iced Tea (Refreshment comes in many
flavors.) Lipton Pure Leaf Tea (Lipton Tea can do that) Mountain Dew (Do the Dew)
Diet Mountain Dew (How Dew does diet) Mug Root Bear (The taste you crave) No Fear
(Mug up!) Pepsi (It’s the cola) Pepsi Max (The Invigorating Cola) Propel (Made for
bodies in motion) Sierra Mist (It’s that refreshing) SoBe (Healthy refreshment)
SoBe Life Water (Thrillicious) Starbucks Coffee Drinks (A new way to fresh) TAVA
(Is your TAVA open?)
Products in Ranchi
Pepsi Pepsi Diet Tropicana Twister Mirinda 7UP Mountain Dew Slice Aquafina Lehar
Soda (Everness) Quality Pepsi follows one quality standard across the globe. Pepsi
has a long-standing commitment to protecting the consumers whose trust and
confidence in its products is the bedrock of its success. In order to ensure that
consumers stay informed about the global quality of all Pepsi products sold in
world, Pepsi products carry a quality assurance seal on them. The ‘One Quality
Worldwide’ assurance seal appears on the entire range of Pepsi beverage. What goes
into a soft drink? Composition of a Sugar-containing Soft Drink • • • • Water: 86-
90% Sugar: 10-13% CO2: 0.3-0.7% Concentrate: 0.2-0.4%

Water Quality: Incoming Water Water accounts for the bulk of all beverages
including colas. In other words, the water used in PepsiCo soft drinks must be as
safe as possible for human consumption.
How do Pepsi ensure this? • • Every water source used for PepsiCo beverages must
first be analytically qualified, which includes using accredited laboratories to
test for at least 100 parameters At every plant, Pepsi require the incoming water
to be purified even further, using a variety of processes. At a minimum, every
plant in world employs a dual back-toback carbon filter.

Water Quality: water treatment system for carbonated soft drinks (Draw a figure) •
• • • • Chlorination-6-8 PPM chlorine in contact for two hours delivers
substantial reduction in micro-organisms. Coagulation-Reduces alkalinity,
organics, debris, metals (like iron, manganese and so on), bacteria and viruses.
This process also makes it tasteless, odourless and colourless. ACF-Reduces many
pesticide residues and removes off taste and odour, colour, THMs, organics and
chlorine Micron Polisher-Reduces fine particles UV Light-Delivers at least three
log (99.996) reduction in bacteria. Secondary infection)

Standards for Flavours and other ingredients • • • • Pepsi flavour concentrates,


which make up less than 1% of Pepsi finished beverages, also are diligently
controlled Each supplies must submit written verification that each lot of
ingredient shipped to Pepsi facilities meets Pepsi strict specifications In
addition to water, sugar, and flavour testing, other ingredients, including non
agricultural have been analyzed by outside laboratories All ingredients including
flavours, emulsifiers, preservations, colours, acidulates, antioxidants and low-
calorie sweeteners are food grade and have been approved by global food standards
like the JECFA/CODEX, USFDA and EU Scientific Committee for Foods. All ingredients
used also conform to standards laid out by the Prevention of Food Adulteration Act
under the healthy ministry
Sugar • • Sugar accounts for 10 to 13% of a soft drinks Sugar must meet high
standards of quality, which are uniform for all of Pepsi beverage plants across
the globe. All of Pepsi sugar manufacturers must undergo the same supplier
qualification process • To add to Pepsi already high quality standards, all of
Pepsi plants in World further purify sugar with hot activated carbon and fine
filtration.

Quality of Sugar At Pepsi, sugar is bought only from approved sugar mills after a
rigorous supplier qualification process described below Self Assessment Perform
self-assessment tool to evaluate current sugar situation and knowledge base •
Provide supplier with Pepsi sugar specification • Get requests into from supplier:
o Type of sugar Paper Audit • • o Manufacturing flow chart o Supplier’s Quality
process & checkpoints Supplier submits information Quality and procurement review
supplier data & if complete, proceed to next stage • Sample Submission • • • On-
site Audit • • • • Supplier to send test sample to independent outside lab Lab
informs supplier of results Supplier shares data with Pepsi Review data & decide
whether to proceed to the next stage Audit supplier’s plant Review their quality
procedures Determine ability to supply COC/COA Ensure that the supplier is capable
& willing to
consistently comply with the Pepsi sugar specifications • Conditional Approval • •
• “Conditional” approval Supplier can being supplying from approved refinery Pepsi
or outside lab tests first 10 deliveries against COA Supplier submits sample from
beginning, middle and end of session to outside lab • Pepsi/supplier share results
of analyses “Final approval status granted after supplier has met COA Full
Approved requirement on 10 separate lots of sugar and has submitted sample from
beginning, middle and end of production session Maintain Approved Status to an
outside lab and all have been approved • Supplier sends sample from beginning,
middle and end of production season to outside lab for complete analysis • • • Lab
informs supplier of results If sample fails, Pepsi & supplier meet to develop
corrective action plan If problem is not solved, revocation of “Approval” &
shipments are halted After sugar is received in the beverage plant, it is
subjected to further treatment to reduce impurities, colour, odour, and microbes
to achieve Pepsi’s Global Specification. Note, however, that while milled sugar
has no standard for pesticide residue as it is a processed agri-product. Carbon
Dioxide • • The CO2 in each bottle of Pepsi surpasses that recognized for medical
applications Pepsi achieve this by subjecting each supplier to a rigorous supplier
qualification process, which includes a complete audit of refineries and testing
from approved international laboratories • • Further, each batch carries
certificates of analysis and compliance Once the CO2 reaches a bottling plant, it
undergoes further purification
Summary • • • Pepsi products are safe Pepsi analyze water, sugar and flavouring in
accordance with the best international guidelines Pepsi products comply with most
stringent international regulations, including the new regulations for carbonated
soft.

Pepsi Promotion
Promotion is a key element of marketing program and is concerned with effectively
and efficiently communicating the decisions of marketing strategy, to favourably
influence target customer’s perceptions to facilitate exchange between the
marketer and the customer that may satisfy the objective of both customer and the
company. A Company’s promotional efforts are the only controllable means to create
awareness among publics about itself, the products and services it offers, their
features and influence their attitudes favourably. Advertising Advertising is any
paid form of non-personal mass communication through various media to present and
promote product, services and ideas etc. by an identified sponsor. PepsiCo has
advertised its products through many different ways and media. Through TV we have
seen different advertisement of its products such as Pepsi or Dew. PepsiCo also
advertise its products by targeting those favourable television programs, like
sports, series and also PepsiCo uses some events like ‘Pepsify Karogey?” to
promote its products. Through newspapers like Jung and Dawn, PepsiCo has
advertised a wide range of products its offers to its customers. And also through
Posters a message has been sent to lot of people to be aware of the products which
PepsiCo offers.

Pepsi Place
Decisions with respect to distribution channel focus on making the product
available in adequate quantities at places where customers are normally expected
to shop for them to satisfy their needs. Depending on the nature of the product,
marketing management
decides to put into place an exclusive, selective or intensive network of
distribution, while selecting the appropriate dealers or wholesalers. • Direct
Distribution: o Delivery of post mix cylinders & handling of key accounts: the key
accounts are different wholesalers, restaurants and hotels like Pizza Hut, KFC,
Metro which serve as a place for key sale. These are known as national key
accounts and are very important in term of competition. o Export Parties •
Indirect Distribution: o Through base market distributors o Through outstation
distribution Before delivering the product some certain guiding principles are
followed for the assessment of distributor’s capacity: o Applicant must have 20 to
25 vehicles (depending on the area) o Applicant must have 20,000 cases of empty
bottles o Applicant must deposit Rs. 1,00,000 as a security This is usually done
through taking over key revenue areas. If the distributor does not achieve its
sales target, the distribution is taken back and an addition of new distributor is
done. Therefore Pepsi’s supply is low supply uncertainty. Some of its supply
source capabilities are: • • • • Less breakdowns High quality Flexible supply
capacity Mature production process

Pepsi Price
Pricing decisions are almost always made in consultation with marketing
management. Price is the only marketing mix variable that can be altered quickly.
Price variables such as dealer price, retail price, discounts, allowances, credit
terms etc. influence the development of marketing strategy, as price is a major
factor that influence the assessment of value obtained by customers. Supplier à
Manufacturer à Distributor à Retailer à Customer

Customers directly relate price to quality, particularly in case of products that


ate ego intensive of technology based. Pepsi being a company which emphasizes
product quality, it tends to sell its products with price range from moderately
low to high prices, depending on the use and the targeted customers.

Sample List of Price PEPSI Category Regular Pepsi Regular Pepsi Pepsi Can Pepsi
Disposable Pepsi Pepsi Diet Pepsi Quantity 200 ml 300 ml 300 ml 600 ml 1.5 Lt 2 Lt
300 ml Rs. 9.00 11 22 20 52 552 Colour Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-
Sugar Burnt-Sugar Burnt-Sugar Burnt-Sugar

MIRINDA Category Quantity Rs. Colour


Regular Mirinda Orange Mirinda Orange Mirinda Orange Mirinda Orange Mirinda Orange
Mirinda Orange Miranda Lemon Mirinda Lemon Mirinda Lemon Mirinda Lemon Mirinda
Lemon Mirinda Lemon

200 ml 300 ml 600 ml 1 Lt 1.5 Lt 2 Lt 200 ml 300 ml 600 ml 1 Lt 1.5 Lt 2 Lt

9 11 20 52

Sunset Sunset Sunset Sunset Sunset Sunset Sunset Sunset Sunset Sunset Sunset
Sunset

SLICE Category Regular Slice Slice Disposable Slice Slice Quantity 250 ml 250 ml
500 ml 1 Lt Rs 11 15 Colur Yellow Yellow Yellow Yellow

7 UP Category Regular 7UP 7UP 7UP 7UP 7UP 7UP Nimboo 7UP Nimboo 7UP Quantity 200
ml 300 ml 600 ml 1 Lt 1.5 Lt 2 Lt 200 ml 300 ml Rs Colour Non colour Non colour
Non colour Non colour Non colour Non colour Non colour Non colour
Nimboo 7UP Nimboo 7UP Nimboo 7UP Nimboo 7UP MOUNTAIN DEW Category Regular Mountain
Dew Mountain Dew Mountain Dew Disposable Mountain Dew Mountain Dew AQUAFINA
Category Aquafina

600 ml 1 Lt 1.5 Lt 2 Lt

Non colour Non colour Non colour Non colour

Quantity 200 ml 300 ml 600 ml 1.5 Lt 2 Lt

Rs 9 11 22 52

Colour Non colour Non colour Non colour Non colour Non colour

Quantity 1 Lt

Rs 13

Colour Non colour

Everness Soda Category Everness Soda Everest Lehar Disposable Quantity 300 ml 500
ml Rs White White

PROMOTIONAL ACTIVITIES
Sales promotion is a key ingredient in marketing campaigns, consists of a diverse
collection of incentive tools, mostly short-term design to stimulate quicker and
greater purchase of particular products of services by consumers. To generate more
sales as well as create and maintain its products, S.M.V.Beverages carried out
several promotional activities, which play greater and vital role in marketing.
SMV Beverages private limited carried out its promotional activity as a control
and integrated programme of communication and material design to present its
product to the
prospective customers. It also help in communicating the needs satisfying
qualities of soft drinks to facilitates the sales and eventually to contribute
Towards the profit in long range. Several tools used by the SMV Beverages Pvt. Ltd
for fulfilling the various purposes of its promotional activities are: 1) Dealer
sales scheme. 2) Rack display contest, “Dil se sajao milega more” 3) Salesmen
contest that is personal selling. 4) Money back scheme to the lucky consumer. 5)
Retailer sales scheme. 6) Visicooler Planogram (P-O-G) 7) First Ball Ka Captain.
(Road Show)

Dealer sales scheme: In this contest at first each dealer is categorized by their
respective distributors according to their past sales performance and then each
distributor fixes a target to minimum sales of each category to, which dealer
according to their category have to achieve during the contest period. The dealer
achieving highest sale over and about the target set is given the award as
announced by the company (earlier it was achieved by proprietors of Kaveri
restaurant). Rack display contest: “Dil se sajao milega more” Pepsi selected a
tactics for the outlets that are sure to increase the sales. In this scheme when
the rack and Visi-cooler is fully displayed with purity that is visi-cooler with
Pepsi product will score runs every month. Maximizing the runs ensures to get the
best gift.
Achieving all 500 runs for the quarters will get the man of the series and
achieving a minimum of 300 runs for the quarters will get the man of the match
gift.

Sales man contest: This scheme is undertaken to motivate the salesman. In this
salesman are given the monetary incentives on the basis of sales made in their
given route. Money back scheme: In this scheme the consumer during their
consumption when open the bottle they get the coded amount of money, which is
mentioned, in the inner side of the bottle cap.

Retailer sales scheme: The most beneficial scheme for promoting the sales is the
retailer sales scheme as implied by the SMV.B Pvt Ltd. According to this scheme
the retailer who so ever he or she make a purchase of two pack of nine pet jars in
each pack of two ltr that is eighteen pet, one pet free is supplied. Visicooler
Planogram (P-O-G): In this Scheme company PSR’s or CE’s arrange in sequence the
visicooler in retailer shop and tell all the planogram steps. Step 1: Empty the
Cooler. Step 2: Clean the Cooler. Step 3: Clean the bottles with duster. Step 4:
Place the Product in the Shelf first. Step 5: Keep a gap of 2 inches between shelf
above bottles and repeat the Process.
Step 6: Charge as per P-O-G Then Company PSR and CE Visit three times in retailer
shop, if Visicooler is pure then they give Cheque of Rs. 150/- and it is a gift of
retailer. It is very beneficial in sales promotion.

First Ball ka Captain (Road Show) : Company promotes the sales through the
Roadshow with new concept “First Ball Ka Captain” in 20-20 world cup.Through the
Road show Company Executives Introduce to scheme and collect some orders.
4.3

MERCHANDISING POLICY
In the era of globalization and liberalization the competition in the market has
become very tough to beat the competitor the company has to improve itself, and
see how customer can be best satisfied or how customer can be delighted. Each
company has to develop strategy for the following purposes. 1. Aware the customer
about the product. 2. Make the customer feel that they are important and company
is giving best of the product. 3. The services associated with the product its if
high quality. For this retailer survey was conducted and the merchandising policy
was reviewed to find out the following factor.

Case display: This is one of the important and fore most merchandising activity in
which we relate to one of the promotional activities that bring about is store
displays. It is the matter of the fact that the Pepsi coal, carets, which is the
plastic container, which is designed in such a way that it can contain in bottles
at a time are displayed properly and effectively in front of the counter or shop.
This will make aware to the customer, that Pepsi product ism available in the
counter. At the same time it enables the retailer to know about the stock
available in his shop. So, we were assigned the task to check up the display and
help it to visualize the case display properly. Warm case display: These are the
empty cases, which is to be display in the from of the outlet, so that the people
could easily recognize that Pepsi product is sold here. So here our work was to
display the warm case in from of the outlet.

Cooler charging:
Generally the consumers demand the soft drinks in the chilled conditions, which is
only possible to have a Pepsi chilling apparatus either fridge or icebox. So we
were assigned to check whether the cooling apparatus is performing well and good
up to mark with the Pepsi products. Cooler Purity: By cooler purity we mean to say
that the cooling apparatus that is either fridge or icebox is fully charged with
the Pepsi product only. Here we were assigned a job to check out whether the
cooling apparatus is best utilized by the Pepsi product or not. If not that
arrange the cooler with the particular product of Pepsi. Rack display: Special
type of Tack, which has been provided by the company in order to keep the pet jars
of 1 ltr, 1.5 ltr, and 500 ml. It’s a plastic stand with some racks which is used
to display pet-jars available at the particular outlet. This serves the dual
purpose. First as a mode of advertisement and the other utility is use to keep all
the pet jars available in the outlets. Out job were assigned to check out whether
the retailers are utilizing the stand properly or not,. Then we would have to
arrange it properly with the visually.

4.4

METHOD OF MERCHANDISING

In today’s fast mobbing industry and highly competitive market, only those
products are likely to be purchases, which are capable to hitting the impulse of
the consumers. The
products appeal should be able to penetrate and get embedded in to the perceptual
space of the consumer’s mind. The concerned product should induce to the
consumers. Pepsi believes that “Jo Dikhta Hai Wo Bikta Hai “ i.e. any product
which is visible is bound to be sold.

4.5 ADVERTISMENT STRATEGY


“ Advertising is any paid form of the non-personal promotion of goods and the
services by a firm who are to be identified.” Advertising, indisputably, makes for
the single most important and fascinating aspect of marketing. The smooth
operation and flourishing of a business go hand in hand with a healthy advertising
strategy. The purpose of advertising is to make the potential customer aware of
the product and persuade them to respond favorably. Advertising processes demands
identification and understanding of the market trends and conforming to the
consumer behavior. The desired effect of advertising is to reforce the possible
existing idea that the product being promoted is better off the other products and
reduce the every likelihood of the customer switching over to the alternative
products. Advertising is what we perceive through one or more human senses. These
are: The sense of sight The sense of hearing The combination of two i.e.
Magazines, Newspapers etc. i.e. Radio etc. i.e. Television, cinema etc.

FIVE Ms OF ADVERTISING In the process of development of any advertising program


five major decisions must be taken into account, known as the FIVE Ms OF
ADVERTISING. These are:
MISSION MONEY MESSAGE MEDIA MEASUREMENT

: Identification of advertising objects. : Deciding the amount that can Be


spent. : What should be the message being sent : What media should be used? :
Method of evaluation of Result.

Apart from these five Ms, TIMING also has a crucial role to play. The various
advertising modes can be enlisted as:
A) DIRECT ADVERTISING        B) INDIRECT ADVERTISING     Shop
painting Wall painting Visi-cooler Vehicle painting Ad film Ad in radio Ad on
newspaper Ad in magazine Hording Glow sign etc. Sponsorship
YEAR WISE ADVERTISING POLICY OF PEPSI SINCE 1990
After entering in Indian market Pepsi started their advertising in planned way to
fulfill the objectives expressed by Vibha Risi, executive Vice President,
marketing Pepsi India Ltd. as “I believed in advertising that leaves a smile on
your face”. In 1991- The first commercial came on the screen with actress Juhi
Chawla and Pop singer Remo. The theme was “Feel the music, Are you ready for the
magic?” went the jingle and this ad ends with opening of Pepsi bottle. In 1992-
The famous and unforgettable punch line “Yeh hai right choice baby… Ahaa! was
introduced with Remo and twelve years Penny Vaz. In 1993- This time also Aamir
Khan, Aishwarya Rai and Sanjana have done the commercial on the theme “Can I Have
Another Pepsi”. In 1994- Here Pepsi introduced cricket star Sachin Tendulkar,
Vinod Kambli and Md. Azharuddin in which Sachin and Kambli fights for Pepsi bottle
and meanwhile Azhar comes out and take the bottle. This ad also ended with the
same punch line “Yeh hai right choice baby…Ahaa!” In 1995- In this commercial when
Akshay Kumar is given another soft drink. Then the kid in the audience shouts “Hai
Akshay Pepsi” and he gets back and he gets back with his magic and this ad also
with the same punch line. In 1996-Here the commercial shows the enthusiasm of
Shahrukh Khan to get his Pepsi for his girl friend. He dodges the dog and with
this tries he tries to show that Pepsi is the active choice to get, for which the
customers can do anything, and it is also revealed by the line “Pepsi to Mai Pee
Ke Rahunga”. In the same year the slogan “Nothing Official About It”., was
introduced by Sachin, Azhar and Kambli.
In 1997- in this year Pepsi celebrated has the 50 years of Indian Independence by
the slogan “Azaadi Dil Ki” with Shahrukh and Azhar. In 1998- in this year Pepsi
has again involved many cricket stars for commercial with slogans “More Cricket
More Pepsi”, “Get a Pepsi Keep Your Head Cool” and “Generation Next”. Beside this
it has also flashed many commercials with Mahesh Bhupati and Leander Paes for
Mirinda (Orange) i.e., Mirindaaaa…. For Mirinda (Lemon), the commercial was done
by the Bollywood mega-star Amitabh Bachchan, gave tremendous real “Jhatka” to its
competitor with the help of memorable punch line “Jor Ka Jhatka Dhire Se Lage”,
which is ruling heart throbbing of millions. Apart from this entire commercial,
Pepsi has sponsored Sharjah Cup at Sharjah. It also sponsors the following:• • •
Pepsi Independence Cup in India YANNI concern in Agra Asia Cup in Sri Lanka

In 1999- Pepsi sponsored World Cup ’99- the ad featured Shahrukh Khan and Sachin
Tendulkar and the punch line “Yeh Dil Maange More” become very popular. In 2000-
Ad featuring Shahrukh Khan, punch line “Yeh Dil Maange More”. In 2002-Ad featuring
Shahrukh Khan, Amitabh Bachchan, Kareena Kapoor, Sachin Tendulkar, Adnan Sami with
the same punch line. In 2003- Ad featuring Fardeen Khan, Saif Ali Khan, Kareena
Kapoor, Preeti Zinta with the punch line “ Mousam Gram Hai Pepsi Ke Liye Hum
Besharam Hain”. In 2003- ICC World Cup was also sponsored by Pepsi, featuring
Shahrukh Khan in the ad. Also an ad featuring Sachin Tendulkar, Shane Warne & Carl
Hooper punch line “Bagha Diya Na”.
In 2004- Ad featuring Shahrukh Khan who done the Army uniform to promote the new
positioning “Yeh Pyaas Hai Badi”. In 2005-Ad featuring Shahrukh Khan with the
punch line “Oye Bubley…”. In 2008- Ad featuring Ranvir Kapoor and Dipeeka Padukone
and Shahrukh Khan with the punch line “Yeh Hai Youngistaan Meri Jaan!” In 2008- Ad
featuring Mahendra Singh Dhoni with the punch line “ Yeh Hai Youngistaan Meri
Jaan!”.
CHAPTER – 5

CUSTOMER RELATIONSHIP MANAGEMENT

5.1 5.2 5.3 5.4

Introduction Company goals Strategies for Customer Loyalty Development Customer


Relationship Management Process
5.1

INTRODUCTION

Today firms have realized that their ability to compete is dependent on their
relationship with their target customers. Customer relationship management (CRM),
therefore, is a buzzword today. There is nothing new to this concepts as we have
seen our street corner grocery shops owner known his customers by name, their
preference and behavior as, also their usage experience with different brands.
Based on this understanding he is able to customize his offer in such a way that
the customer finds more value in buying from him rather than the neighboring shop
or a large retail store. It is the concept of understanding and tracking customer
behavior and experiences to customize the offer that forms the basis of any CRM
programme in a large company.

5.2

COMPANY GOALS

We all know that corporate goals are generally spelled out as sales, market share,
profit and return on investment (ROI). Each of these goals has different
implications for marketing strategy. For example, if the company’s priority is
sales maximization, then the strategy revolves around aggressive selling. It is
presumed that the rout to customer acquisition and retention is aggressive
salesmanship, low prices, and attractive payment terms, advertising and sales
promotion. Here the company allocates it resources to creation this edge on an on
going basis in R&D, competitive advertising, pricing, distribution models and
after sales service. The assumption here is that the firm, in order to remain al
leader or retain its position in the market place has to continuously
differentiate its offer. The customer is believed to value this differentiation
and is hence willing to pay a premium or a higher price to such an enterprise. In
a highly competitive and complex market, there are four categories of customers in
any organizations portfolio: a) b) c) Those who are resistant to change
(“laggards”)/”hate” trying another brand or source and are comfortable with their
current purchase. Those who perceive the company’s product as being in good value
for money at its existing price. Customers who perceive companies offer a better
value for money than completion.
d)

Customers who like the company and its offer because they see it as reflecting
their needs and aspiration and meeting their expectation. Market leaders focus of
following goals:

a) b) c)

Enhancing customer loyalty Maximizing returns on customer segments or customer


account Creating strong interdependence between the customer and company.

5.3

STRATEGIES FOR CUSTOMER LOYALTY DEVELOPMENT:

Each organization professes to encourage customer loyalty. Loyalty is an outcome


of customer faith and confidence in the company’s offer. The customer believe and
continues to buy or select it for the region that he\she sees it reflecting
his\her value. The basis for continuity in relationship between the company and
the customer over a period of time is value maximization. Loyal customers are more
profitable because: a) b) c) d) e) They are willing to p a premium as they
perceive the offer to be superior in value Loyal customer help in acquiring new
business Cost saving take place Acquisition cost of new business to also goes down
Generally a loyal customer’s basket of products from the same source expands over
a period of time. Thus customer loyalty is a good business goal to pursue.
Customer Acquisition Higher cash reserves and investments Superior customer values
Customer Loyalty

Cost Advantage

Motivated Employees Growth in sales & Market share

Compensation

Investor Loyalty

Enhanced investors confidence

Higher Profits
Return on Customer Segment\Account as a Goal This goal helps in focusing on
maximizing returns over a period of time in a customer segment\account. This is
based on the assumption that over a period of time it is possible to maximize
profits from a customer segment or account only if the company pursues a loyalty
based business model. This goal also recognizes the relationship between lifetime
value of the customer and profits. The simplest way to understand the average
customer tenure is by calculating customer attrition rate and inverting the
fraction. The way to do it is to count the number of customers who defect over say
three months\six months, then annualize it and express it as fraction of the base
number of the customers at the beginning of the year. While working out the
customer retention value, one must keep in the mind that attrition rates are
generally in the early years of relationship. But as the customer life increase,
attraction rates go down. Also on must analyze movement of customer segments being
acquired and those leaving the company portions. Strategies for Customer Loyalty
Development Customer loyalty is more than just customer retention. We need to
appreciate that loyalty is built over a period of time. In fact there are three
stages of loyalty, which are observed in the average life of a customer, in the
organization. They are: a) Customer acquisition b) Customer retention c) Strategic
customer care Acquisition stage Here the focus of the company is generally on
transactions and the product mix sold to each customer account the measurement of
preference at this stage is the total number of customer acquisitions over a
period of time. The sales turnover is one of the measures. Profitability is
assessed by the inventory of the unsold product mix at a given point in time and
the profit margin generated in various sales transactions.
Retention phase Here loyalty is assessed through measurement tools like customer
satisfaction surveys and the development of satisfaction index. Generally
profitability is assessed on the basis of a product or brand’s share in the
customer’s total purchases. Strategic customer care It involves integration
information on customer needs, Aspirations and expectations in corporate processes
like new product development, product up gradation or modification and
distribution changes. In a way this information is used for the purpose of making
corporate processes more customers centric. This measure of profitability is
generally considered as the share of company’s brands in the purchases made over
the lifetime of the customer. Hence the issue of building up preferences and
making them available at the right time, at the right place, at the right price
and in the right size, have to be focal point of a strategic thinking. Now this is
possible only if the company has been able to use CRM processes, which measures
not just the quantitative but also the qualitative aspect of consumption. The
strategies for loyalty development concentrate on segmentation analysis. Typically
one may observe that there are four segments of customers requiring very different
kind of treatment, if one were to consider loyalty and profitability of each
customer group. It also forces the marketer to consider the strategy of
customerization. This is not possible unless and until the company has deployed a
strategic CRM process another strategy is to strength interdependency between the
customers and the organization. In a way this involves creation dependency of the
customer on the organization and its processes. One of the important inputs to
developing this inter-dependency is the investment in and us of technology. Today
all organizations who are operating in the strategic customer care phase realize
that. a) b) Not all customers are the same and don’t require or deserve same level
of services. Technology, efficient processes and empowered people are important
value drivers.
c)

The organization may not necessarily have all the necessary resources to service
different segments of he customers and yet may not like to lose any of them for
this purpose it is necessary that strategic alliances be created with other
organizations that could provide same level of service to the customers and hence
strengthen the brand in the market place.

d)

Developments of marketing information systems which help identify customers who


are most receptive to new value propositions and offers of the company.

e) f)

Profitability analysis of customer accounts. Creation of knowledge management


system that helps the company to collect analyses and disseminate information
related to the customer groups.

g)

Development of application tools specifically geared to support organization


functions like sales force, customer support, service quality, competition and
customer intelligence.
5.4

CUSTOMER RELATIONSHIP MANAGEMENT PROCESS

Customer relationship management, therefore, is process whose objective is to


enhance customer loyalty.

a) Creation and management of data mines and ware houses b) Development of


appropriate organizational structures c) Investment in technology d) People
development CRM PROCESS

Data Mining and Warehousing

People

Loyalty

Structure Alliances Call centers

Technology Web Voice Mail Telephone


CHAPTER – 6 DISTRIBUTION CHANNEL

6.1 6.2

Theoretical Aspects of Distribution Channel Distribution Channel of SMV Beverages


Ltd.
6.1

THEORETICAL ASPECTS OF DISTRIBUTION CHANNEL

The whole business of manufacturing can be broadly divided into two parts-
production and distribution. When the production process is completed the next
step is to distribute the processed soft drinks, so that it should reach the
consumer by one and the several means, in order to satisfy the needs of consumer.
Thus the flow of the goods from the producer that is from the plant to the
consumer following a certain path, which is known as channel of distribution.

There are several management scholars who defined Channel of distribution in


several ways: -

Philip kotler defined the channel of distribution as “every producer seeks to line
together the set of marketing intermediaries that about to fulfill the forms
objective. This set of marketing intermediaries is called the marketing channel
also trade channel of distribution”.

According to Richard Buskink “the distribution channel are the system of economic
institution through which the producers of goods deliver them into the user
hands.” Channel of distribution is the important organizational tool use to move
the goods from the processing unit to the consumer. There are several means which
entitles to the good is transferred from the manufacturing unit to the end user
that is consumer.
6.2

DISTRIBUTION CHANNEL OF SMV BEVERAGES LTD.


Channel of distribution followed by the SMV Beverages Pvt. Ltd.

The channel of distribution is one of the essential activities, which is the


responsibility of the sales department. The best alternative strategy is followed
by the sales department of SMV Beverages private limited to distribute the
processed soft drink so that product is available at right time and at right
price. The company uses the following marketing distribution channel: -

Manufacturing Unit

Distributor or Whole seller

Retailer or Outlet

End Users

The product after processing is firstly supplied to the distributor or wholesalers


from the plant or manufacturing unit. The whole area in around Ranchi is divided
into the several zones and routes. Thus the retailer cannot take the delivery
directly from the manufacturing unit. They have to take it from their respective
distributor in the particular zone of route. The distributors are selected on the
basis of assurance given by them regarding the minimum sales, which they have
targeted annually. Depending upon the market each distributor in its
initial stage has deposited some security money this amount varies between the
distributor-todistributor and area-to-area. There is not any fixed criterion for
retailer or outlet but some time its selection is dome on the basis of sales of
caret per day. There is no direct relationship between the retailer and the
company. There are lots many of exclusive outlet which is given more preference in
order to meet product available. Most of the retailer are beetle shop, restaurant,
grocery shop, STD booth, Medicine shops etc. who are having the stall for the
sales soft drinks. These retailers have to give the assurance to the concerning
distributor for better sales and the time of thanking delivery. They have
deposited the security for the empty carets with specified retailer purchasing
price. The distributor at first have to seek the permission of the sales
department for the number of cases of soft drinks required by them. After getting
the proper authority from the sales department the distributor then sent their
delivery through route vehicles to the respective outlets that so ever have paid
the requisite sum of money either by cash or draft and deliver the filled carats
and get back the empty carats.
CHAPTER – 7 RESERACH METHODOLOGY

 Market Survey  Findings  Limitations


7.1

INTRODUCTION

MARKET SURVEY :One of the most effective tools of the market research technique is
Market survey. We can know the actual facts and figures regarding. The product
through market survey. Any business organisation has to sell its product in the
market. The largest share of market a company has the better its profit margin
will be. To increase the market share the company should come out with a product
which best satisfies the customer need. To find out the customer need and market
demand the company should survey the market and the process is knows as market
survey. Based on this survey the company goes for following function. 1. 2. Market
Development Function. Product Development Function.

The Report on over all Marketing activities in Ranchi is based on two different
types of survey:(a) Retailer Survey.

The retailer survey as the word indicates is the survey of every retailers of soft
drink in the area. For my practical purpose the dealer only includes the
authorized dealer appointed by the company, but it also includes the retailer- big
or small grocery shops, stationary, restaurant, betel shop etc. beside these, the
various exclusive stalls and sales of pantry cars also included in it. In a
nutshell, by dealer we mean, those who are dealing in soft drink in some way or
the other, in large our study, directly or indirectly. Thus our study includes all
such dealers. EDS includes various aspects: • Route-wise no. of dealers • Crate
strength • Per day sales • Chilling aid • Advertisement
• •

Nature of outlets Scheme and pay-offs etc.

While conducting the survey of dealers, a format was provided to me, which ask to
fill up by the dealer so that it meets the requirements of the organization. The
dealer survey as mentioned earlier includes a variety of dealers. I have tried to
visit each and every outlet and personally interviewed them. In order to know the
market share of Pepsi. I have conducted a survey at Ranchi and its surrounding
areas. The numbers of outlets, which are covered by me in different area of
Ranchi, are as follows:S. No. Location (Ranchi) Booty More Radium Road Kanke Road
Bariatu Morhabadi Main Road Bahu Bazaar Niwaranpur H. B. Road Lalpur Kokar
Circular Road Ratu Road Upper Bazaar Piska More Dhruwa Hinoo Doranda Harmu Bye
Pass Kanta Toli Namkum Lowadih Total No. of Outlets 78 22 42 93 23 28 12 10 30 30
20 13 52 35 15 25 15 10 35 20 20 10 638
(B) Dealer Survey. The numbers of outlets, which are covered by in different
distributor areas, in Ranchi, are as follows:S. No. 1 2 3 4 5 6 7 8 Location
(Ranchi) ESC Marketing Ashriti Enterprises Ram Avtar Enterprises Mayuri Marketing
Manoj Enterprises PR Enterprises Krishna Traders MH Marketing Total No. of Outlets
68 70 75 70 65 165 65 60 638

since Retailers/Dealers are supposed to be very close to the consumer. They can
know the choice and taste of a consumer very well.The following important
information we come to know by Dealer/ Retailer Survey.  Market position of Pepsi
 Distribution effectiveness.  Price effectiveness.  Service of chilling
equipments  Schemes Availability. In Ranchi 3 me have survey all parts of this
small town In Ranchi 3 area Karamtoli to Booty More and on the national highway
Booty more to Chutupalu. We have surveyed about 165 outlets/Shops in Ranchi 3.
1.

MARKET POSITION OF PEPSI.


From our survey we find that Pepsi faces a tough competition from its rival
Company

Coca-Cola. Thumps-Up a product of the Coca-Cola Company gives a stiff competition


to Pepsi. We find that Thumps-up gives a tough competition to Pepsi Cola. Sprite
gives a tough competition to Mountain Dew. But Dew is also is saleable than
sprite. Mirinda and slice is also more Saleable than Maaza. Because of the better
taste slice is more demanded in the market. The Customers of slice includes the
females and middle aged persons; who just want to taste the Mango Juice. Mirinda
is also more demanded by the female consumers. On the basis of the survey we come
to know that it is due to the sweetness of Pepsi which makes its market power a
weaker one. On the other hand Thumps-up hardness gives it more value at the
market.

2.

DISTRIBUTION EFFECTIVENESS :We find that the summer season is the Peak season for
the Cold Drinks. That's why a

special case should be taken for the distribution of Pepsi products. These
includes that the supply should be regular. Irregular supply effects the marketing
of Pepsi. The Retailers says that it is upto then for the selling of a product.
Whatever product is available to them they will sell that item. if Coca cola-
supply is regular they can sell the Cola-Cola product if the Pepsi supply is not
regular and good. That's why the Retailer wants the regular supply and best
service from the company during the peak reason. "From our survey we found that
the supply of Pepsi products is regular. Although in some areas like.Sikidiri,
Chhutu Villege, Borya the supply is not regular because of less number of
vehicals. The Retailers, however, manages to get Pepsi from other other side
dealer. We find that during the peak season sometimes supply problem occurs.But
according to my thinking the main reason of irregular supply is shortage of pepsi
products in distributor godown. However, Retailers also know that the supply
sometimes hampers during the peak season. But in this year (2009). The supply is
regular in almost all areas of Ranchi 3.
3.

PRICE EFFECTIVENESS :From our survey with regard to price we come to know that the
increase in price of

200ml (Pepsi) does effect the selling of Pepsi. However this increase in price
does not effect too much to the selling of Pepsi Products.However, the price is
same as that of the Coca-Cola products.Hence we find that the increase in price
affects the marketing of both the products i.e. Pepsi and Coca-Cola.

4.

SERVICE OF CHILLING EQUIPMENT OF PEPSI :The service of Chilling equipment of Pepsi


is not satisfactory to all the

users/Retailers/Shopkeeper.The mechanic of the company is not regular at the place


where required.Retailer/Dealers/Shopkeepers complains about the less cooling of
Pepsi freeze. But they satisfied from the cooling equipments of Pepsi.

5.

SCHEME AVAILABILITY :We find that the dealers guts the schemes regularly. These
Schemes lead to the more

selling of Pepsi products. The dealers Say that schemes provided by the Company,
encourages them to sell the Pepsi products more and more, however, sometimes. The
retailor cannot know about the schemes because the schemes are of very short
period. That's why they want to know about. The exact information and timing of
Schemes. So that they can avail these scheme
FINDINGS
1. The most popular flavour in the market is cola & cloudy Lemon which accounts
70% of the market Thumps up is the front runner in the cola segment where as there
is a stiff competition between 7up & sprite 2. The Pepsi is dominating in both the
areas Ranchi 3 ,1& 2. Almost 70% of both the area Ranchi 3, 1&2. is captured by
the pepsi . 3. The concept of fat dealers is good for the rural and interior
market but harmful for the urban market 4. 5. Many times small outlet holders do
not get schemes, this must be sorted out There is a lot of confusion in the market
regarding leakage of bottles cap scheme of glass bottles and wrapper scheme of PET
bottles. 6. During the observation it was found that schemes is not running up to
the root level that is up to the small outlet. 7. Since monsoon came before its
schedule time there fore sale in the last month of the season is less as compared
to the last years of the same time. 8. 9. Delays in handling complaints and
placement regarding the chilling equipments. During the observations it was found
that response to schemes is not according to expectations. 10. The tough
competition between Pepsi and Coca-Cola made the retailers to enjoy the situation.
11. 12. 13. The share in the market fluctuates every time with different schemes.
Commitment has become can important word in the market. Price charged by the
retailers depends upon the local area and the type of outlet where it is sold.
LIMITATIONS
1. 2. 3. We have done our market survey only in the Peak season. 45 days are very
less to know the each and every aspect of marketing activities. Respondents
Covered by us could not give the accurate result it only provide some idea.
CHAPTER - 8

• • •

DATA ANALYSIS CONCLUSION SUGGESTIONS


Market share of Pepsi & Coke in Ranchi 3.
S. NO. 1. PEPSI 66.62 % COKE 33.38%

33% Pepsi Coke 67%


Flavour Wise Comparison of Soft drinks in Ranchi 3.
THUMS UP PEPSI MOUNTAIN DEW SPRITE MIRINDA 7 UP SLICE OTHERS 20% 20% % 8% 13% 10%
6% 12 % 10 %

12% 11%

20%

Thums up Pepsi Mountain Dew Sprite Mirinda

6% 10% 13% 8%

20%

7 Up Others Slice

Overall Comparison of Pepsi & Coke in Ranchi 3.


PEPSI COKE 67 % 33 %

33% Pepsi Coke 67%


Comparison of Pepsi & Coke in Glass Bottles in Ranchi 3.

PEPSI COKE

67 % 33 %

33% Pepsi Coke 67%

Comparison of Pepsi & Coke in Pet Bottles in Ranchi 3.


PEPSI COKE 66 % 34 %

34% Pepsi Coke 66%


Comparison of Pepsi & Coke in Empty Bottles in Ranchi 3.
PEPSI COKE 58 % 42 %

42% Pepsi Coke 58%

Comparison of Pepsi & Coke in VG Chilling Equipment in Ranchi 3


PEPSI COKE 48 % 52 %

48% Pepsi 52% Coke


Comparison of Pepsi & Coke in OYC Equipment in Ranchi 3.
PEPSI COKE OWN 8% 11 % 81 %

8%

11% Pepsi Coke Own

81%

Comparison of Pepsi & Coke in Service Frequency in Ranchi 3.


PEPSI COKE 58% 42 %

42% Pepsi Coke 58%


Comparison of Pepsi & Coke in Schemes in Ranchi 3
PEPSI COKE 76 % 24 %

24%

Pepsi Coke

76%
CONCLUSION
Market share of Pepsi is increased because of effective distribution channel and
demand of the consumers. Since in Ranchi 3 and its surrounding area heat descends
more as compared to other parts of the states so obviously demand is more in this
region. The marketing activities of SMV beverages are good but there is a need of
some more promotional activities. Besides this there is certain more conclusions
which are as follows:1. Pepsi has got far better position and giving the tough
competition to its competitor coke. 2. 3. Almost all the age group of the consumer
like Pepsi and its different flavours. Mirinda is the market leader in orange
flavour while Thumps-up is the leader in cola flavour and 7up is the leader in
cloudy lemon flavour. 4. In pet bottles segment Pepsi is dominating Pepsi has
acquired almost 70-75% share in this segment. 5. 200ml of almost all the flavor
has got a significant position in the market and are in high demand. 5. The young
generation is very crazy about the Pepsi and its various products because of its
sponsharship of different cricket tournament and bollywood stars like Shahrukh
khan Kareena Kapoor and Prianka Chopra. 6. Pepsi "YEH PYAAS HAI BADI" and “OYE
BUBBLY” are excellent.
SUGGESTIONS
1. The most popular flavor in the market is Cola. Regarding Pepsi it is less
strong; therefore youth prefer Thumps Up. So Pepsi should be stronger in taste. 2.
3. Counter which is regular for the whole year should be given full attention. The
executives should take the feed back about sales man from the retailers, which is
very necessary to improve the market. 4. 5. Salesman's good interaction with the
retailer is needed for increase in sales. Pepsi should not be complacent with its
performance and keep improving upon it to get a sizeable lead over coca cola. 6.
As the flavor and ingredients of cola in the market are similar and the most
active consumer is the young people, the production of Pepsi should be diversified
to meet the different need of the consumers. It means it should be customer
oriented. 7. Advertisement must be done properly especially in the rural area and
should launch the special campaign 8. Special gifts should be given to the owner
of the shop in order to motivate them like T-Shirts, Caps, and Umbrellas etc. 9.
Wholesalers in the interiors should be recognizing which would increase the supply
and also will reduce the cost of daily transportation. 10. In many outlets it has
not provided freezers despite the huge sales so this is causing dissatisfaction
among the retailers. It should look in this area. 11. There was a lot of complain
regarding the late delivery of crates in the outlets. It implies it should
strengthen its distribution channel in this region. 12. Also grievances of the
retailers should be regularly looked in, especially regarding the defective
freezers.
13. Also it has not done extensive promotion of its brands through billboards and
paintings on the walls. So it should look into that more seriously. 10. Pepsi
fridge and racks should be made easily available for the retailer because this
would serve the purpose of visibility. "JO DIKHEGA WOHI BIKEGA". 11. We should try
to have a contract with beer bars in N.H.-33, actually on the national highway
situated many restaurants and Dhabas and drinkers always use cold drinks in wine.

GLOSSARY FOBO COBO FMCG MNC'S SMVB PGDBM : : : : : : Franchise owned Bottling
Operation. Company Owned Bottling Operation. Fast Moving consumer goods.
Multinational Companies. SMV Beverage Pvt. Ltd. Post Graduate Diploma in Business
Management.
BIBLIOGRAPHY Reference Books Concepts of Marketing. 1) 2) 3) MARKETING MANAGEMENT
MARKETING RESEARCH OTHERS SOURCES • News Paper • Magazine • Internet : : : Philip
Kotler C. B. Kothari
DESIGN OF THE QUESTIONNAIRE
A detailed questionnaire is prepared to achieve the objective of the study. It was
maintained that along with fulfilling the objective of the study, additional
information should also be gathered as much as possible. Following are the
questions in the questionnaire that are partly answered by the retailers and
partly by personal.

PEPSI
A STUDY OF RETAIL OUTLETS AND THEIR PROMOTION QUESTIONNAIRE FOR RETAILERS:

Name of the
shop/outlet: ..................................................................
Address/Location Type of outlet (a) General Store (c) Sweet Shop (e) Dhaba
/Canteen l .Q. Which brand of soft drinks you deal in ? (a) Pepsi (c) Both (b)
Coca-cola (d)
Other : ....................................................................... :
.............................................................. (b) Pan Shop (d)
Lassi /Juice Shop (f) Others

2.Q. Which brand of cola provides you better facility ? (a) Pepsi (b)Coca-cola (c)
Both

3.Q. How many crates of Pepsi & Coca-Cola you sell/day ? (a) 0-1 crates (c) 2-3
crates (b) 1-2 crates (d) 3 & above
4.Q. Which company’s signage you have in your outlet ? (a) Pepsi (c) Both (b)
Coca-Cola (d) No signage

5.Q. Which company’s visi - cooler you have in your outlet? (a) Pepsi (d) Own (b)
Coca-Cola (e) Mixed (c) both

6.Q. Which medium effects the sales most? (a) Television (c) Display (b)
Magazines/Newspapers (d) Wall paintings/Hoardings

7.Q. Do you think that aggressive advertising further increase the sales volume of
Pepsi? (a) Yes (b) No

8.Q.What kind of promotional activities affect sale mostly? (a) Free bottle scheme
(c) Discount Crates (b) Prize (d) Other

9.Q.Your recommendation for further sales


mostly? ..........................................................................
........ 10 Q Contact person & contact number for further queries?

………………………………………………………………………. 11Q What is the total number of empty glass bottles


of Pepsi & Coke? •
Pepsi 12Q.

Coke

What is the total number of Pet (Plastic) bottles in your outlet?

………………………………………………………………………… 13Q. How many VG coolers of Pepsi & Coke in your


outlet? Pepsi 14Q • Coke • Own •

What is the number of OYC freeze of Pepsi, Coke & Own in the outlets?

………………………………………………………………………… 15Q. Service frequency of the Van in your outlets of


Pepsi & Coke?

………………………………………………………………………….. 16Q. Which company, Pepsi or Coke gives more


schemes?

…………………………………………………………………………… 17Q. Soda of which Company do you keep.? Pepsi •


Coke •