1

TABLE OF CONTENTS

DESCRIPTION

PAGE NO

1. PREFACE

2. INTRODUCTION
I.
II.

Objective
Company profile
* PepsiCo Company Profile
III. History of the Company
IV. Organizational Structure

14
17
30

2. RESEARCH METHODOLOGY
I.
Research Design
II.
Market Research Process
III.
Visi Purity

56
57
63

3. FINDING AND ANALYSIS

I.
Findings & Observation
II.
Graphical Analysis
III.
Swot Analysis

80
83

4. CONCLUSIONS & RECOMMENDATIONS

I.
II.
III.
IV.

Conclusion
Recommendation
Limitation
Main Key Points

95
98
105
107

5. BIBLIOGRAPHY
I.
II.
III.

Bibliography
Annexure
Questionnaire

112
114
116

Introductio
n

INTRODUCTION

The Project Sales promotion & Market Share of PEPSI in

ANANATHAPURAMU Is designed on the lines of basic investment decisions to

be taken by the senior officials of PEPSI for the purpose of amendments in the preexisting distribution network in order to review and strengthen the routes. The findings of
the project are very crucial for the increment of the market share of PEPSI in the
ANANATHAPURAMU & Beverage Market.

Though the process is an ongoing one but the decisions have to be taken on a
strong base, supported by facts and figures and that too on papers. This support can only
be provided with the help of an extensive and through analysis of the market and the data
collected thereof.

The Marketing Development Co-ordinator who was the lead or the project head
delivered the objectives of the project to us expressly and we had to submit the day report
to him along with the draft report. He was the in charge of the project and gave guidelines
and directions to approach the project.

Objectives:

To analyze, interpret and study the entire beverage market of ANANATHAPURAMU

Comparative study of the various brands, packs and flavors available in the
market.

Analysis of the strong and weak point of the competitors products and compare it
with PEPSI.

To assess the reach and feasibility of the product and give the output for further
investment for enhancing the distribution network along with assessing the
efficiency of the current distribution system.

Assess the promotional measures in the context to the sales of PEPSI and focusing
our study on the customer of company i.e., the retailers.

As obvious that any company is concern with the increase in sales of its products,
our project was in line with the companies objectives and all steps incorporate in the
project were directed to give an overview so as to attain its objectives

.
The market research conducted by us was in accordance to the companys rules
and policies which were quite material for the efficient and effective results and
inferences to be drawn from the entire process.

The market research was conducted in compliance of the given guidelines delivered
to us expressly to achieve the given objectives, which were as under:

1. Profitability
2. Improvement
3

Sales

4. To satisfy the customers

Compan
y Profile

10

COMPANY PROFILE

In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina,
begins experimenting with many different soft drink concoctions; patrons and friends
Sample them at his drug store soda fountain.

In 1898 One of Caleb's formulations, known as "Brad's Drink," a combination of

carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on
August 28, 1898. Pepsi-Cola receives its first logo.

Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment

beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo,
Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana,
Gatorade and Quaker Foods businesses in the United States and Canada.

Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi,
Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer
account for nearly one-third of total soft drink sales in the United States.
Pepsi-Cola North America's non-carbonated beverage portfolio includes
Aquafina, which is the number one brand of bottled water in the United States, Dole
single-serve juices and SoBe, which offers a wide range of drinks with herbal ingredients.

11

The company also makes and markets North America's best-selling, ready-to-drink iced
teas and coffees via joint ventures with Lipton and Starbucks, respectively.

PepsiCo, Inc. is one of the world's largest food and beverage companies.
The company's principal businesses include:

Frito-Lay snacks

Pepsi-Cola beverages

Gatorade sports drinks

Tropicana juices

Quaker Foods
PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and FritoLay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats
Company, creating the worlds fifth-largest food and beverage company, with 15 brands
each generating more than $1 billion in annual retail sales. PepsiCos success is the result
of superior products, high standards of performance, distinctive competitive strategies
and the high level of integrity of our people.

12

There are many who feel that Pepsi-Cola had the first move advantage in India.
Little do they know about Pepsi-Colas initial foray into Indian soft drinks industry way
back in 1956?

CocaCola had entered the country just a year back in 1955. But later Pepsi-Cola
withdrew from the country in 1961 due to bottling problems. Pepsi-Cola entered India in
April 1989 by setting operation in beverages, snacks & agribusiness. At this time Parle
had 70% of the market share of the total soft drink market.

Initially it faced some trouble in entering the market due to strong resistance from
most of the domestic soft drink industry and the advocates of Swadeshi. The Indian
economy was not liberalized and proved to be another barrier. Pepsi-Cola removed these
barriers by:
Promising the government to focus considerable selling efforts in the rural area to
help economic development.
Promising to help boost the expert of agricultural products
Offering to transfer the food processing, packaging & water treatment technology
to India.

13

THE HISTORY OF PEPSI-COLA

1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions; patrons and friends sample
them at his drugstore soda fountain.

1898:One of Caleb's formulations, known as "Brad's Drink," a combination of

carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on
August 28, 1898. Pepsi-Cola receives its first logo.

1902: The instant popularity of this new drink leads Bradham to devote all of his energy
to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the
U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company.

The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly
Journal
1903:"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented
warehouse; he sells 7,968 gallons of syrup in the first year of operation.
Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion."

14

1904: Bradham purchases a building in New Bern known as the "Bishop Factory" for
$5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in sixounce bottles. Sales increase to 19,848 gallons.

1905: Pepsi-Cola's first bottling franchises are established in Charlotte and Durham,
North Carolina.

Pepsi receives its new logo, its first change since 1898.

1906: Pepsi gets another logo change, the third in eight years. The modified script logo is
created with the slogan, "The Original Pure Food Drink."

There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada.
Syrup sales rise to 38,605 gallons.

The federal government passes the Pure Food and Drug Act, banning substances such as
arsenic, lead, barium, and uranium, from food and beverages. This forced many soft drink
manufacturers, including Coca-Cola, to change their formulas. Pepsi-Cola, being free of
any such impurities, claimed they already met federal requirements.
1907: Pepsi-Cola Company continues to expand; the company's bottling network grows

15

to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.

Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons.

1908: Pepsi-Cola becomes one of the first companies to modernize delivery from horse
drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract
to make and sell Pepsi-Cola.

1909: Automobile race pioneer Barney Old field endorses Pepsi-Cola in newspaper ads
as "A bully drink...refreshing, invigorating, a fine bracer before a race."

1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.

1920: Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy
you."

1923: Pepsi-Cola Company is declared bankrupt and its assets are sold to a North
Carolina concern, Craven Holding Corporation, for $30,000.

Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will
from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

16

1928: After five continuous losing years, Megargel reorganizes his company as the
National Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi
trademark.

1931:U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola
Company bankrupt, the second bankruptcy in Pepsi-Cola history.

The Loft candy company acquires the National Pepsi-Cola Company. Charles G. Guth,
president of Loft, assumes leadership of Pepsi and commands the reformulation of PepsiCola syrup formula.

1933: By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of
moves, he acquires Mega gels interest in the company, giving himself 91% ownership of
Pepsi.

1934: A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales,
the company begins selling its 12-ounce drink for five cents (the same cost as six ounces
of competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant
success. The cost savings proves irresistible to Depression-worn Americans and sales
skyrocket nationally.
Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th,
1867-February 19th, 1934)

17

1935: Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and
sets up national territorial boundaries for the Pepsi bottler franchise system.

1936: Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.

1938: Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of
the Pepsi-Cola Company. Mack, who considers advertising the keystone of the soft drink
business, turns Pepsi into a modern marketing company.

1939: The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel"
theme in newspapers.

Pepsi-Cola Company names Mack as CEO

The Board of Directors removes Guth from the Pepsi payroll after he plans

1940: Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first
advertising jingle ever broadcast nationwide on radio.

1941: The New York Stock Exchange trades Pepsi's stock for the first time.
In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.
1943:

Pepsis

theme

line

becomes

18

"Bigger

Drink,

Better

Taste."

1948: Corporate headquarters moves from Long Island City, New York, to midtown
Manhattan.

1950: Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife,
Hollywood movie star Joan Crawford, is instrumental in promoting the company's
product line.
Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is
the fifth in Pepsi history.

1955: Herbert Barnet is named President of Pepsi-Cola.

1959: Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice
President Nixon share a Pepsi.

1960: Young adults become the target consumers and Pepsi's advertising keeps pace with
"Now it's Pepsi, for those who think young."

1963: After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall
is named CEO of Pepsi-Cola Company.

Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the
12-ounce bottle gives way to the 16-ounce size.

19

1964: Diet Pepsi, America's first national diet soft drink, debuts.
Pepsi-Cola acquires Mountain Dew from the Tip Corporation.

1965: Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and
Pepsi-Cola merge, forming PepsiCo, Inc.

Military 12-ounce cans are such a success that full-scale commercial distribution begins.
Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your
innards."
1970: The Pepsi World Headquarters moves from Manhattan to NY.

1974: First Pepsi plant opens in the U.S.S.R.

Television ads introduce the new theme line, "Hello, Sunshine, and Hello Mountain
Dew."
1977: At 37, marketing genius John Sculley is named President of Pepsi-Cola.

1978: The Company experiments with new flavors. Twelve-pack cans are introduced.

1980: Pepsi becomes number one in sales in the take home market.

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1983: Mountain Dew launches the "Dew it to it" theme.

1984: Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New
Generation."

1985: After responding to years of decline, Coke loses to Pepsi in preference tests by
reformulating. However, the new formula is met with widespread consumer rejection,
forcing the re-introduction of the original formulation as "Coca-Cola Classic."
The cola war takes "one giant sip for mankind," when a Pepsi "space can" is
successfully tested aboard the space shuttle.

1986: Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway.

Pepsi-Cola acquires Mug Root Beer.

1987: Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwid

Beverages.

1988: Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.

1989: Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation
Ahead."

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1990: American Music Award and Grammy winner rap artist Young MC writes and
performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi
family by endorsing Diet Pepsi. The slogan is "You Got The Right One Baby."

1991: Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada

becomes part of the company's North American operations.

Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate
(or PET) into the marketplace. The development marks the first time recycled plastic is
used in direct contact with food in packaging.

1992: Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding
"Choice of a New Generation."

Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will distribute single serve Lipton
Original and Lipton Brisk products.

Crystal Pepsi: a refreshing, clear soda that is caffeine free, has 100% natural flavors, no
preservatives and is low in sodium, goes national.

Mountain Dew introduces the popular theme line, "Get Vertical."

22

1993: Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi".
Pepsi-Cola profits surpass $1 billion.

1994: New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi
CEO Craig Weatherup explaining the relationship between freshness and superior taste
to consumers.
Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo
Foods and Beverages Company.

1995: In a new campaign, the company declares "Nothing else is a Pepsi" and takes top
honors in the year's national advertising championship.

1996: In February of this year, Pepsi makes history once again, by launching one of the
most ambitious entertainment sites on the World Wide Web. Pepsi World eventually
surpasses all expectations, and becomes one of the most landed and copied, sites in this
new media, firmly establishing Pepsi's presence on the Internet.

1997: In the early part of the year, Pepsi pushes into a new era with the unveiling of the
Generation Next campaign. Generation Next is about everything that is young and fresh;
a celebration of the creative spirit. It is about

1998: Pepsi celebrates its 100th anniversary.

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PepsiCo. Chairman and CEO Roger A. Enrico donate his salary to provide scholarships
for children of PepsiCo employees.
Pepsi introduces Pepsi One - the first one calorie drink without that diet taste!

2000: Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills
and hard work elsewhere (for more money of course!), therefore putting an end to his
Pepsi page!

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Organizational Structure

Chairman
President
Unit Manager
TDM
ADC
Customer Executive

Customer Executive

Distributers A,B,C

Distributers E,F

Route Agents

Route Agents

Helper

Helper

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Product
Profile

26

PRODUCT POSITIONING OF PEPSI CO.

Pepsi prefers to position itself as the beverage choice of the New

Generation, Generation Next, or just as the Pepsi Generation.

These terms adopted in Pepsis advertising campaigns are referring to the markets
that marketers refer to as Generation X. The Generation X consumer is profiled to be
between the ages of 18 to 29. They have high expectations in life and are very mobile and
active. They adopt a lifestyle of living for today and not worrying about long-term goals.
Though Pepsis main emphasis is on this segment but they also have a focus on the 12 to
18 year old market.

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The rich deep blue coloring represents eternal youthfulness and openness.
Marketing plans like Yeh Dil Maange More, Got Another Pepsi, Ye

Pyass Hai Badi have made Pepsi one of the coolest brands recognized among teens
in the top five and the only beverage product in this category.

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PEPSI-COLA LOGOS

The Pepsi-Cola logo has changed many times over the years. Here's a
chronological history of the various logos.

29

30

Slogans and Logos

1898

Brad's Drink
Exhilarating,

Invigorating,

Aids

1903
Digestion
1906

Original Pure Food Drink

1908

Delicious and Healthful

1915

For All Thirsts - Pepsi:Cola

1919

Pepsi:Cola - It makes you Scintillate

Drink Pepsi:Cola - It Will Satisfy

1920
You
1928

Peps You Up!

1929

Here's Health!

1932

Sparkling, Delicious

1933

It's the Best Cola Drink

Double

1934
Refreshing and Healthful
1938

Join the Swing to Pepsi

1939

Twice as Much for a Nickel

1943

Bigger Drink, Better Taste

1947

It's a Great American Custom

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Size

1949

Why Take Less When Pepsi's Best?

1950

More Bounce to the Ounce

The

Light

Refreshment

1954
Refreshing Without Filling
1958

Be Sociable, Have a Pepsi

Now It's Pepsi for Those Who

1961
Think Young
Come Alive! You're in the Pepsi
1963
Generation
Taste that Beats the Others Cold,
1967
Pepsi Pours It On.
You've Got a Lot to Live, Pepsi's
1969
Got a Lot to Give
1973

Join the Pepsi People Feelin' Free

1976

Have a Pepsi Day!

Catch

That

Pepsi

1979
Take the Pepsi Challenge
1981

Pepsi's Got Your Taste for Life

1983

Pepsi Now!
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Spirit

1984

The Choice of a New Generation

1987

America's Choice

1989

A Generation Ahead

1992

Gotta Have It

1993

Be Young, Have Fun, Drink Pepsi

1995

Nothing Else is a Pepsi

1997

Generation Next

1998

Same Great Taste

1999

The Joy of Cola

2000

The Joy of Pepsi

2003
2004

Pepsi. It's the Cola

a2005
2006

33

STRENGTH & WEAKNESSES

OF PEPSI CO.

Pepsi Cola throughout its 100 years of existence has developed much strength.
One of the strengths that have developed Pepsi into such a large corporation is a strong
franchise system. The strong franchise system was the backbone of success along with a
great entrepreneur spirit. Pepsis franchise system and distributors is credited to bring
Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of
1997.

Pepsi also has the luxury to spend 225 million dollars in advertising a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder advertising
and promotions. This large budget also allows Pepsi to introduce new products and very
quickly make the consumer become aware of their new products.

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

Pepsi-Cola bottlers and food service customers. This includes some of the world's bestloved and most-recognized advertising. New advertising and exciting promotions keep

34

Pepsi-Cola brands young. The company manufactures and sells soft drink
concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage
products.

Pepsi also has had the good fortune of making very wise investments. Some of the
best investments have been in their acquiring several large fast food restaurants. They
have also made wise investments in snack food companies like Frito Lay, which at
present time is the largest snacks company in the world.

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Probably high on the list of strengths is Pepsis beverage line up. Pepsi has four
soft drinks in the top ten beverages in the world. These brands are Pepsi, Mountain Dew,
Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the No.1 tea in the United
States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana, Starbucks,
Aquafina and a license agreement with Ocean Spray Juices.

Pepsi Cola like any company has weaknesses. Ironically, the one strength that has
been credited for most of its success in the past has now become a weakness for Pepsi.
This former strength is the franchise system. The franchise system in Pepsi Corporate
view has become a liability. Pepsi in todays market must be able to act as one instead of
several separate units.

The franchise system has become a hurdle to Pepsi because many of these
franchises have become very strong and will not be dictated by PepsiCo on how to handle
their operations. Some of these franchises are unwilling to support certain Pepsi products
and at times produce their own private label products that are in direct competition with
Pepsi products.

Secondly the franchisees are not willing to make capital expenditures to keep up
with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola
at present time does not operate a franchise bottling system).
36

As mentioned earlier Pepsi has tried to elevate this problem by spinning off their
interest in fast food restaurants but at present time are still guilty by association to many
of the large fountain accounts. The franchise system has also affected fountain sales due
to the fact franchisees are not willing to buy expensive fountain equipment to place in
accounts mainly because the profit margin is so low and could take years to recoup their
investment. Pepsi also has a weakness in the international beverage market.

Unfortunately for Pepsi they were a Johnny Come Lately into this arena. Pepsi
has tried to enter this market by trying to do in three years what took Coke 50 years to do.
This area will take years for Pepsi to mature simply due to Cokes dominance in the
international market and the strong ties that Coke has developed with these markets and
their governments.
Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi
customers buy their products because of taste, price, packaging and promotional factors
and of a wide variety of brands. Pepsi customers also buy their products due to the high
accessibility of Pepsi brands.

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Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi
buys large shelf area and display areas so the customer can find them easier, viz,
Convenience stores, Restaurants, Movie theaters and almost and other conceivable spots.

Pepsi has a competitive advantage over Coke because of the image it portrays.
Pepsi promotes itself as the choice of the New Generation. Pepsi gets this advantage
by implementing such large marketing projects like Project Globe. This marketing
plan, which Pepsi spent 637 million dollars over five years, is to introduce the new rich
deep blue coloring of its packaging. The rich deep blue coloring represents eternal
youthfulness and openness. Marketing plans like this made Pepsi one of the coolest
brands recognized among teens in the top five and the only beverage product in this
category.

Another competitive advantage that Pepsi has is in their product Mountain Dew.
Mountain Dew has grown a staggering 74.1% over the last five years. Mountain Dew has
a 6.3% market share and has recently become the No.4 soft drink in America. At this
current pace Mountain Dew will be come the first non-cola to reach the 1billion gallon
mark in one year.

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Pepsi also has an advantage as an innovator in their field. They are the first soft
drink makers to introduce a new one-calorie soda called Pepsi-One with, just approved by
the FDA, Ace-K.

This new sweetener is slated to be a break through for diet soda in which it limits
the after taste associated with diet soda and brings a more cola taste to the product. Pepsi
has always been a strong No.2 against Coke and have become one of the worlds largest
Companies. As far as market share is concerned Pepsi stands strong.

39

PEPSI-THE INDIAN EXPERIENCE

Pepsi is one of the most well known brands in the world today available in over
160 countries. The company has an extremely positive outlook for India. "Outside
North America two of our largest and fastest growing businesses are in India and
China, which include more than a third of the worlds population." (PepsiCos
annual report, 1999)
This reflects that India holds a central position in Pepsis corporate strategy.
India is a key market for PepsiCo, and at the same time the company has added value to
Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in
three focus areas Soft drink concentrate, Snack foods and Vegetable and Food
processing.
Faced with the existing policy framework at the time, the company entered the
Indian market through a joint venture with Voltas and Punjab Agro Industries. With the
introduction of the liberalization policies since 1991, Pepsi took complete control of

its

operations. The government has approved more than US$ 400 million worth of
investments of which over US$ 330 million have already flown in.
40

 One of PepsiCos key strategies was to develop a completely local management

team. Pepsi has 19 company owned factories while their Indian bottling partners own 21.

The two advertisements tags: yehi

hai right choice baby and nothing official

about it immediately ring a bell- its got to be Pepsi.

The advertisement tag

yehi hai right choice baby

was the first

Hinglish slogan ever used in the in the Indian market. This slogan proved to be the
best suited one for Pepsi and it was a mega hit and at that moment of time.

Pepsi in a short span of its operations in India has found a place in the hearts and
minds of the Indian consumers. The success has primarily been due to the innovative and
passionate Indian team, which has been built over the years. Pepsi is a trendsetter
managed and run by Indians, where important decisions are taken locally.
Pepsi started its operations in India in 1989 and since then PepsiCo has set up a
fully integrated operation in India viz. Manufacturing, Research & Development,
Marketing, Distribution and Franchising- covering fruit/vegetable processing, Exports,
Snack Foods & Beverages. In the mean time Pizza Hut and Frito Lays are the examples
in this regard only.

Pepsi has 40 bottling plants in India, out of which 16 are company owned and 24 are
owned by Indian franchisees. One of the major players in franchisee is RKJ Group.

41

The RKJ group is India's leading supplier of retailer brand Carbonated and NonCarbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its
experience in the beverage industry dates back to the sixties when it had the first
franchise at Agra.

It has the license to supply beverages in the territories of Western U.P., part of
M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of
Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal
and is responsible for producing and marketing 44% of Pepsi requirement in India.

This group has brought name and fame to the Pepsi as in all this regions Pepsi is
at the commanding position and in the mean this group has diversified itself into ice
cream, suiting and shirtings, restaurants, beer plant in Mauritius & edible oil plant in Sri
Lanka

42

PEPSI-COLA IN INDIAN SCENARIO

Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has under
gone a radical change. When Pepsi-Cola entered, Parle was the leader with the

Thumps-up

being its flagship brand. Other products offering by Parle included

Limca & Gold spot,

bottler of

Coca-Cola,

another upcoming player in the market was, the erstwhile

pure drinks. Its offering includes

Campa- Cola,

Campa-Lemon & Campa-Orange.

With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in

for more aggressive marketing to sustain its market share. The chronology of the
initial phase of the Cola wars in India was:

1977: Parle launched Thums-up and pure drinks launched Coca-Cola.

1998: In September, final approval for the Pepsi Foods Ltd. Project granted by the
Cabinet Committee on economic affairs of the Rajeev Gandhi Govt.

1990: In March, Pepsi-Cola and 7-up launched markets in north India.

43

 1990: In May, The government cleared the Pepsi-Cola project again but with a
change in brand name to Lehar Pepsi, simultaneously it rejects the Coca-Cola
application Citra from the Parle, stable hited the market.

1991: Pepsi-Cola extended its soft drinks business and reached at national scale.
Pepsi-Cola launched its product in ANANATHAPURAMU and Bombay.

1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and
Parle start initial negotiation for a strategic alliance but took break off after a
while.

1993: Pepsi-Cola launched Slice and Teem captured about 25-30% of the soft
drink market in about 2 years.

1994: Pepsi bought Dukes & Sones.

1995: Pepsi-Cola lunched cans, having capacity of 330ml in various flavors

1996: Pepsi-Cola domestic and international operations combined into a

Pepsi-Cola Company. International and domestic operations combined into one
business unit called Frito-lay Company.

44

 1997: Pepsi-Cola brought Mirinda Orange opposite to Fanta.

1998: Pepsi-Cola launched Mirinda Lemon opposite to Limca.

1999: Pepsi-Cola launched Diet Pepsi in can and 1.5 Lit. PET bottle for
health conscious people.

2001: Pepsi-Cola launched Slice in Tetra Pack.

2003: Pepsi-Cola launched Pepsi Blue to get the favour of world cup season.

2005: Pepsi-Cola launched Mirinda in Straw Berry flavour to get the favour of
movie Batman.

2005: Pepsi-Cola launched 7-up as 7-up ice.

Pepsi-Cola launched Mountain Dew to be more competitive with Coca-Cola

45

PEPSI-COLA PHRASES
The Pepsi-Cola marketing phrase has also changed many times
1909-1939:

Delicious and Healthful

1939-1950:

Twice As Much For A Nickel Too

1950-1963:

The Light Refreshment

1953-1961:

Be Sociable

1961-1963:

Now It's Pepsi For Those Who Think Young

1963-1967:

Come Alive! You're In The Pepsi Generation

1967-1969:

Taste That Beats The Others Cold

1969-1973:

You've Got A Lot To Live, Pepsi's Got A Lot To Give

1973-1975:
1975-1978:

Join The Pepsi People Feeling' Free

Have A Pepsi Day

1978-1981:

Catch That Pepsi Spirit

1981-1982:

Pepsi's Got Your Taste For Life!

1983-1983:

Pepsi Now!

1984-1990:

Pepsi, The Choice Of A New Generation

1990- 1994:

Pepsi nothing official about it

1995- 2004

Yeh dil mange more (Pepsi India)

2004- now

My Pepsi my world

46

PEPSI BRANDS AND PACK PROFILE

47

BRAND PACKS:
The products are generally available in three kinds of
packaging:

48

GLASS BOTTLES

DISPOSABLE CANS

49

PET JARS

FLAVOUR PACKS:

50

COLA (Carbonated Soft Drink):

PEPSI

MIRANDA ORANGE
ORANGE:

51

.
MOUNTAIN DEW

7UP

52

MANGO:
SLICE MANGO

MINERAL WATER:
AQUAFINA

53

THE RKJ GROUP

It can be said with absolute certainty that the RKJ Group has carved out a special niche for
itself. Their services touch different aspects of commercial and civilian domains like those
of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on
today can lay claim to expertise and leadership in the fields of education, food and
beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods
Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined
territories in which brand and technical support was provided by the Principals viz., Pepsi
Foods Limited. The manufacturing facilities were restricted at Agra Plant only.

The group also became the first franchisee for Yum Restaurants International
[formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise
rights for Northern & Eastern India. It has total 27 Pizza Hut Restaurants under its
company.

54

The group added another feather to its cap when the prestigious PepsiCo
International Bottler of the Year award was presented to Mr. R. K. Jaipuria for the year
1998 at a glittering award ceremony at PepsiCos centennial year celebrations at Hawaii,
USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in
the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico,
Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of
Pepsi Cola Company.

55

Credenti
als
56

MAJOR CREDENTIALS

PEPSICO HOLDINGS PVT. LTD. RECEIVED GOLD STANDARD

AWARD FOR PRODUCTION & QUALITY CONTROL FOR THE YEAR
1996-1997.

JAIPURIA GROUP WAS ADJUDGED BEST BOTTLER OUT OF

MORE THAN 2000 BOTTLERS ALL OVER THE WORLD FOR THE
YEAR 1996-97.

57

LOCATIONS OF BOTTLING PLANTS OF

PEPSI IN INDIA

53

Research
Methodol
ogy

54

RESEARCH METHODOLOGY
OBJECTIVE OF RESEAECH:The Main objective of research in this project was to get the detailed analysis of
the market position and sales promotion of the PEPSI PRODUCTS.

RESEARCH PROBLEM:To what extent does the penetration level of the PepsiCo product's and the other
merchandising objects like cooling equipments, Ice Boxes, Glow signs, Dealer
boards, Paintings and Racks leads the penetration of such things from, CocaCola during the summer period in the period in the year 2015 in
ANANATHAPURAMU and Its rural area and urban area, distributed via direct
and indirect routes. What were the factors responsible for this level of
penetration?

TYPE OF STUDY:Primary study.

55

RESEARCH DESIGN
The Design Of our research is statistical as it concerns the items are to be
observed and how the information and data gathered are to be analyzed.

SAMPLE DSSIGN:For the project we used non-probabilistic sampling that can also be termed as
we only targeted the shops which sells waters.

METHODS OF DATA COLLECTION

The data collected for the project was primary data. The data was collected
through personals interviews, which was in the form of direct personal
investigation. The interview was very structured because we only ask the
question as per the EDS format.

Types of data
1. Primary data
2. Secondary data
56

THE MARKET RESEARCH PROCESS

The entire project was divided into five phases and each phase had its individual
significance and supplemented each other. The process had to be started from the grass
root level and it was very important to understand the market for this FMCG product,
which is very fast in production, distribution and consumption.

The five phases into which the project was divided were:
A. Route Riding
B. Retail Tracking
C. Corporate Tracking
D. Analysis of finding and observations
E.

Segregating ANANATHAPURAMU

57

for WAP and SAP

The entire process was more of a Descriptive Research type and incorporated a
formal study of the specific problems faced by most FMCG companies an exploring the
opportunities in the untapped market. The survey was conducted on the basis of PEPSI
product preference and evaluation of sales forecast in the new and underdeveloped
market including the evaluation of the advertising and promotional measures. The data
collected had to be systematically arranged, analyzed and reported in a form congenial to
take on the spot decisions.

The observation approach was adopted in the process by gathering the data
essential and material for the decision-making and with clear objective of increasing the
market share of PEPSI in the ANANATHAPURAMU

market. Customer preferences

and satisfaction was also important in assessing the market share but that was very clear
that customers generally do not have loyalty towards the product in the Beverage industry
rather what matters the most is the product availability which will be discussed later.

All the phases mentioned above have been discussed along with the observations,
problems, and other dimensions which have been encountered and experience in detail in
the following pages.

58

A. ROUTE RIDING :

The Beverage Industry or to be more specific, the Soft Drinks Industry has one of
the most active network in term of its production, supply, distribution, marketing,
consumption and also personal relations at the very second level of its distribution
network. That is the reason why it is sometimes said to be Very Fast Moving
Consumer Goods.

Due to the above stated reason it becomes very essential to study and analyze the
market of these products from the grass root level. So in the Soft Drinks Company as
PEPSI, route riding becomes the first and foremost step in any of the activities to be
undertaken be it any official so we were no exceptions.

During the very initial days we were required to exercise Route Riding, the
objective of which was:

To understand and analyze the market in its raw and basic form.

59

To gain an in depth knowledge of the merchandising and processing activities of

the Route Agents and understand the Beverage market.

To undertake the comparative study of the various brands and flavor packs of all
existing beverages or soft drinks
market and the market share and growth potential of each brand individually.

To develop innovative ideas to enhance the distribution system.

Route Riding is basically accompanying Pepsi Vans along with the route agents
and understanding the way they conduct merchandising activities right from the charged
vans leave the depot to the entry of empty vans back to the depot. The Route Riding
phase was for the initial twenty days in which we had covered twenty different routes.

60

The Route Riding is a crucial phase because the actual dealing with the retailers
and their dealing with the customers can be very efficiently understood through this
process which is important at all levels of decision making in the industry.

The Routes i.e., the Pepsi Vans were charged and left the depot by 7:30 in the
morning, accompanied by the Route Agent

(Ras). The RAs were given the route

planners and the particulars of the products, flavors, and quantities along with the billing
materials. The vans had to cover the entire route and the RA had to do the merchandising
and sales against cash, which was a significant feature of this industry. The targets were
given twice or thrice in a week that was a challenge for them and after achieving these
targets the RAs was awarded with some special incentives. As there exists a player like
Coca Cola. So it had a lot to do with schemes, discounts and other incentives.

61

VISI
PURITY

62

The routes were allocated on the basis of individual areas and the demand of the
product in that particular area. The RAs been responsible for the accomplishment of their
sales target on their routes and was given incentives on achieving the targets. Not only
this, the RAs also had the responsibility of moving the flavors and packs in proportion
along with the proper display of the products for proper visibility and arrangement of
products in brand order along with VISI purity.

The RAs had the responsibility of setting up Monopoly PEPSI Sales Counters
where no products except that of PEPSI would be available amongst the soft drinks and
especially of Coca Cola. These monopoly sales counters enjoyed special benefits in terms
of discounts, schemes, VISIs (fridges), display boards, glow signboards, wall paintings,
banners, posters and other incentives

The RAs had to achieve their sales target and surrender the daily sales proceeds
with the concerned Customer Executives along with the route planner and billing
materials and gate pass along with the details of sales on their route.

63

The entire activities of the RAs was controlled by the Customer Executives, who
also assisted the RAs in achieving their targets and were in charge of the sales
performance in their assigned areas. A Customer Executive had nine to ten RAs under
him and was responsible for their performances as well. He was also concerned with the
promotional activities on his routes and handling of policy matters in the corporate
regarding supply to industrial canteens and cafeterias
We as Research trainees were required to study and analyze the activities of the
RAs and be familiar with the market. We had been provided Market Analysis Sheets by
the MDC in which we were required to record the observations of the retail outlets on a
particular route.

The observations, which were required to be recorded in, were:

The quantity of the cold and warm stocks of all brands and flavors available at the
outlet along with the outlet details.

Inquiring about the satisfaction of the retailers in terms of sales of PEPSI

products, schemes, discounts, combo offers, and the benefits of promotional
activities.

64

Inquiring about the satisfaction by the current distribution network in context to

product availability of all flavors packs or individual flavors according to demand
of customers, rates billings.

Inquiring about the behavior and merchandising of RAs in accordance with the
companies regulations and record complaints against RAs, company or products,
if any.

Inquire about the performance of various brands and flavors packs and customers
response to those brands or flavors and also to educate the retailers about various
schemes and incentives to increase sales volume.

Last but not the least, assessment of the effectiveness of, assessment of the
effectiveness of promotional materials and activities like, display boards, glow
signs, signage, wall paintings, posters, banners, racks, shelves, counters, VISIs,
and also impact of nation wide advertising on brand loyalty by the customers.

The information so collected was required to be filled in the Market Analysis

Sheet (specimen on the next page) and reported to the MDC along with other information
in order of their seriousness.

65

RETAIL MAPPING OF
ANANATHAPURAMU :

The Retail Mapping is the integral part of the project and the most crucial is
taking significant decisions regarding the enhancement of the distribution network
involving heavy investment on account of increasing the routes and starting new routes
and promotional measures on those routes to increase its market share in
ANANATHAPURAMU . The new routes, exploring new markets required the decision
to be supported with facts and figures which had to be provided by the Research trainees
on the basis of the survey conducted in the market and processed data there of.

The retail mapping had to be conducted on the basis of the Retail Tracking Sheet
(RTS), which had been developed by the Marketing Development Coordinator and
Customer Executives of the ANANATHAPURAMU unit which incorporated the retail
outlets, their addresses, proprietor, respondent etc and served as a vital database for all
market since then for PEPSI in ANANATHAPURAMU and had to be incorporated in
the project in accordance to the companies policies.

66

Objectives of Retail Mapping:

Segregating entire ANANATHAPURAMU

for Strong Area Programme and

Weak Area Programme i.e., SAP and WAP.

Assessment of retailers performance.

Assessment of the level of promotional measures required for increasing market

share of PEPSI.

Collection of required information for making investment decisions for the

enhancement of existing routes and opportunities for new routes in existing
market as well as exploring new market.

Classification of all retail outlets in ANANATHAPURAMU

into five broad

categories viz, On Route, Non Existence, Non Potential, Reachable and Non
Reachable under the head, Potential Retail Outlets.

67

The duration for the completion of the Retail mapping took duration of 20 days.
The entire survey was guided and directed by the Customer Executive and Daily report
had to be presented to him after assessment and analysis along with other findings and
observations. The Data had to be classified in a systematic manner and presented in a
predefined format, which was further reviewed by the Marketing Development
Coordinator.

The Retail Mapping process incorporated of including of new outlets, which have
been omitted or newly opened, and the product availability on all these outlets. The major
thrust was on segregating the market for Strong Area Programme and Weak Area
Programme.

The Strong Area refers to the routes on which the sales targets are met without
much effort and have continuous demand for the products. These areas are performing to
the standards and are contented with the level of promotion schemes and other sales
boosting measures. The marketing efforts are nominal in these areas because of the
surplus demand and the area of concern is only to ensure the proper and efficient supply
of the products to meet the demand. In the ANANATHAPURAMU

market

approximately 32% of the market can be said to be strong areas and these areas include
the well-developed markets as shopping malls, movie theatres, convenes, hotels,
68

restaurants and bars etc. For these Strong areas, SAP only aims at maintaining the
performance of the product and enhancing the sales volume. It is not the area of serious
concern for the company.
On the contrary the Weak Area refers to those areas or routes, which are critically low in
sales and the targets, are tough to achieve and require aggressive marketing support. The
demand in these areas is fluctuating or rather feeble. The routes are the area of concern
for the company as the demand is very low due to many reasons and the major one is the
existence of the player like Coca Cola in the market. Other reasons could be poor
distribution network, inadequate availability of the products on the outlet, inadequate
promotional measures and marketing support, undeveloped market as that of the interiors
etc.
These weak areas had to be identified and the cause of their inferior performance had to
be traced through the Retail Mapping and the company had to be provided with the facts
and figures to take legitimate measure on the basis of the findings of the deficient
performance of the product in these areas. This involved the aggressive marketing
strategy and heavy investment decisions to strengthen these markets. For this purpose the
classification of the outlets into five categories was very crucial along with the other
findings and observations discussed later. These five heads of classification have been
discussed as under.
ON ROUTE :

69

It refers to the retail outlets, which are covered by the Route Agents and visited
daily for sales and merchandising. The outlet is visited daily and actively involved
in the sales of all brands and flavor packs of PEPSI.

70

 NON EXISTENCE:

It refers to the outlets which were merchandising the product

are no more in

existence, i.e., they have diversified their business activity or have closed.

NON POTENTIAL:

It refers to those outlets, which are in existence but have very low potential in
terms of sales or are not keenly interested in merchandising the products of soft
drink.
A careful assessment had to be done in case of Non Potential outlets, as they
would turn to be potential in near future. It was also the area of operation of
project to motivate these Non Potential outlets to undertake the merchandising of
PEPSI.

71

 POTENTIAL OUTLETS :

It refers to those outlets, which have the potential for the merchandising of PEPSI
and have the required investment capabilities and can be the profitable Point
Of Purchase of PEPSI by the customers. There were cases in case of these
potential outlets, which were already merchandising PEPSI, and those, which
did not, dealt with beverage products. The possibilities of setting monopoly
counter were very fair at these outlets and were given special attention. The
Potential outlets had to be further classified in two heads as below:

72

o REACHABLE POTENTIAL OUTLETS :

It refers to those Potential outlet which are reachable i.e., the products can
be made available with the PEPSI vans. The reachability decision had to
be taken in context to the accessibility of the vans at these outlets.

o NON REACHABLE POTENTIAL OUTLETS :

It refers to those Potential outlets which are not accessible by the PEPSI
vans. These outlets had to be considered because the sales volume can be
increased at these outlets and so alternative method of distribution and
promotional activities have to be evaluated and worked upon.

73

C.

CORPORATE MAPPING :

ANANATHAPURAMU being an entirely industrial city had huge potential for

the sales of PEPSI in corporate as these concerns had factories, offices and canteens and
the officials and workers base was very strong. The process of Retail Mapping was
followed by the Corporate Mapping, which incorporated of tracing of the organizations
and assessing the market for PEPSI in these areas. Apart from these the database had to
be updated to turn the non-potential market in the corporate into profitable liaisons for the
increment of sales volume.

74

THE OBJECTIVES OF CORPORATE MAPPING WERE:

Trace the organizations with and without canteens and cafeterias and estimate
the market for PEPSI.

Estimate the brand preference of PEPSI and COKE in the corporate and the
reasons thereof.

To review the product performance and satisfaction along with the

expectations of the customers in corporate including PEPSI Dispenser
Equipments.

To assess the product availability and demand of the product (Traffic) in these
organizations as well as when the product has the optimum consumption e.g.
daily, delegations, meetings, parties, or other occasions and the customers i.e.,
whether the officials or workers or both.

To ensure efficient supply and record any complaints or grievances thereof.

To assess the promotional measures being adopted by Coca Cola for tapping
these markets and locate the weak points in corporate having Coca Cola
counters to convert them into profitable opportunities.

75

The Corporate Mapping was the supplementary programmed in the project to

boost the sales performance of PEPSI in ANANATHAPURAMU

and capture the

market share of its nearest competitor. The analysis and findings were recorded on the
format provide by the company accompanied by the list of findings and observations in
order or their preference and seriousness along with all the relevant details about the
organization. The matters were discussed and analyzed carefully by the MDC.
The corporate matters had to be given a special care as these had huge potential
for the product. The specimen copy of the Corporate Mapping format is attached for
reference. The findings and observations have been discussed in the coming pages.

76

D. ANALYSIS OF FINDINGS AND

OBSERVATIONS:
The main objective of the company is to increase the brand preference and market
share so any information material form this point of view had to be take into account
along with the formats provided by the company for predefined information recording
and analysis of those recordings and present the information in an organize and
systematic manner in a condensed form reflecting the actual position of the market.

The information had to be recorded in the format along with the relevant
information as per the objectives of the research and an analysis of that information had
to be made and present them in an understandable format so that immediate inferences
can be drawn. Generally those information had to be presented in percentages and the
other findings and observations had to be evaluated and a list of findings had to be
arranged in order of their seriousness and areas of serious concern along with the outlet
details.

After the analysis sheets and formats have been surrendered to the C.Es after
analysis by the trainees it was further analyzed and evaluate by him and a brief analysis
was made each day of the daily report. The CEs further forwarded these reports after
retaining the reference copy, to MDC for further review and reference.
77

SEGREGATION OF
ANANTHAPURAMU :

As discussed earlier that the major objective of the Retail Mapping of

ANANATHAPURAMU

was to segregate the market for PEPSI for the Strong Area

Programme and the Weak Area Programme. These Programmers have been discussed
under the Retail Mapping Head. The Data and fact collected by the survey had to be
analyzed and presented in a systematic form in order to draw meaningful inferences.

The finding of the Route Riding and the Survey conducted during the Retail
Mapping and the Corporate Mapping were combined together and analyzed together to
reach a final report ie, the RETAIL MAPPING SUMMARY or THE CONDENSED
DRAFT REPORT, which gave the entire picture of the actual position if PEPSI in
ANANATHAPURAMU . The report so prepared was on the basis of the Retail Tracking
Sheet and the other supplementary finding and observations were considered to reach a
consensus of declaring the route as a weak area or a strong area.

The reports were analyzed thoroughly by the Customer Executives and a meeting
was held for the assessment of the routes and the reasons of unfavorable performance in
78

the weak areas and how to improve the sales on those routes. The discussion comprised
of the further investments for the enhancement and extension of the routes and the level
of promotional measures required in these areas. The performance of Coca Cola was also
reviewed simultaneously and a comparative study was made to assess the performance
and growth in the industry. These data and figures were compared with that of the last
year and a growth percentage was reached which also served as a basis of declaring an
area as a Weak Area.

As already mentioned PEPSI is a VFMCG so the marketing strategies are going to

be very dynamic in nature. The Customer Executives had to formulae day to day
strategies and these were communicated to RAs in the morning when they were going to
leave the depot and this interaction among R.A.and C.E. was to be known as Gate
Meeting.

The programmers were to be based on the seriousness of the problems and

accordingly a mild or aggressive marketing, promotional and investment programmed
was to be formulated.

79

Findings
&
Observati
on
80

FINDINGS & OBSERVATION

The reports of each phase of the project had to be supplemented by the
information, data, facts and figures and significant findings and observation to
support the feasibility of decisions to be taken on the basis of the Retail
mapping Summary or the CDR. The information so recorded in each phases of
the project had to be listed in order of their relevance and seriousness and
presented in a form to facilitate immediate inference.

Some of the important observations have been listed below:

Soft drink businesss behavior is not governed by brand loyalty so the availability
of the right brand, at the right place, at the right time is the key for winning
consumer in soft drink business.

The most important and satisfying observation was that, PEPSI had
approximately

64%

ANANATHAPURAMU

market

share

in

the

soft

drinks

market

in

and some of its brands like Mirinda Orange and

Mountain Dew were performing above standards apart from PEPSI Cola in spite
of the Coca Cola with two cola flavor packs i.e., Coke and Thumps up.

81

The present distribution system of PEPSI is the best in the entire FMCG industry
in ANANATHAPURAMU and the major strength
of PEPSI. The enhancement in the distribution network would definitely increase
the market share of PEPSI.

The retailers played a very critical role in the increment in the sales volume of the
product and the had to be kept satisfied in order to increase the market share by
offering better schemes, discounts, display materials such as VISIs, racks,
counter, signage, wall paintings and better amount for purchase of shelf space for
display.

The existence of sub-dealers and super stockiest are also the major area of
problem, as they do not move the schemes and other display materials and
incentives information to the retailers, which is one of the reasons for the
dissatisfaction of retailers.

82

The cut throat competition between PEPSI and COKE had lead to the never
ending cola war and price war which has brought down the profit margins which
is one of the major grievances apart from the common complains pertaining to
schemes, incentives and display materials.

The other major issue was the supply of PEPSI from the bottling plants in
ANANATHAPURAMU and Punjab against the company policies. These plants
supplied the products at discounted rates and violated merchandising principles of
PEPSI.

Another critical issue was the presence of duplicate products of PEPSI in the
market. The details of these outlets have been surrendered to the company for
action against these outlets.

The position of PEPSI in the corporate was not up to the mark and Coca Cola had
a better scene in this context. One of the reasons can be assigned to the product
positioning of PEPSI and Coca Cola.

83

84

Analysi
s

85

MARKET STATUS OF PEPSI PRODUCT

PEPSI-COLA PRODUCTS
Aquafina
7%

Lehar 7-Up
9%
Pepsi
24%

Lehar
Soda
4%

Mirinda
Orange
14%

Slice
20%

Mountain
Dew
19%

86

Mirinda
Lemon
3%

PREFERENCE OF SOFT DRINKS IN

QUANTITY

2 LT.
24%

200 ML
37%

330 ML
(CAN)
2%
600 ML
12%
300 ML
25%

87

RATIO OF CONSUMPTION OF SOFT DRINKS

PER 100 CONSUMERS

Once in a
week
Never
3%
1%
Occasional
y
4%

Twice in a
week
12%

Daily
13%

Often
67%

88

The other Statistics and finding have been presented in the form of
various charts on the coming pages:

DEMAND OF SOFT DRINK

89

CONSUMTION OF PEPSI BRAND

90

RATIO OF PEPSI AND

COKE IN ANANATHAPURAMU

91

Which brand purchase is the most?

.

PEPSI Vs COKE

43
57%

92

PEPSI
COKE

Swot Analysis

93

SWOT ANALYSIS

STRENGTH:
1) Good market penetration.
2) Motivated channel partner.
3) Well defined routes.

WEAKNESS:
1) All brands were not available in at least 80% shops.
2) Complaint handling was not up to mark.
3) Supply in certain area is very irregular and also route agents are not covering full
routes.
4) Poor signage and display is making the routes week for the sale of Pepsi.
5) Interpersonal relationship with the company officials and the route agent is not
satisfactory.

OPPORTUNITY:
1) It is observed that in some newly establishing areas many new outlets are opening
, Pepsi needs to concentrate on these new outlets and can gradually increase its
sale in these area.

94

2) Large number of mix outlets can be changed to Pepsi exclusive and coke
exclusive to mix only by luring them good and efficient supply, glow sign and
cooling equipments.

THREATES:
1) Coke is the only nearest competitor and it is catching up in the market penetration
through price skimming and other promotional scheme.
2) Some local brands commonly known as kancha , Tip Top , Shine and the launch
of Catch soft drink a product of DS group are causing decrease in sale in some
areas.

95

Conclusi
on

96

CONCLUSION

The business of Soft Drink industry is significantly based upon the impulse
buying, so it is very necessary to Merchandise products of PEPSI efficiently and present
them in such a manner so that it can motivate the consumer and generate a thirst in
consumer to consummate it.

Though, PEPSI has a strong position in ANANATHAPURAMU with the support

of its efficient distribution network, aggressive marketing efforts and advertisements
along

with

attractive

ANANATHAPURAMU

schemes

but

there

still

exists

potential

market

in

to be exploited and a suitable Weak Area Programme or the

Strong Area Programme has to be formulated to improve its market share depending
upon the area under consideration.

Soft drink businesss behavior is not governed by brand loyalty so the emphasis is
not only on creating the market but also on retaining it. The availability of the right brand
and flavor pack, at the right place, at the right time is a key for winning the customer in
soft drink business. Keeping these facts in mind it becomes very important to treat the
retailers with concern and satisfy them by various measures and so that they are loyal
towards PEPSI. Public relation is also critically important in this industry.

97

CONCLUSION
&
RECOMMEND
ATION

98

Recommendati
ons

99

RECOMMENDATIONS

The Project Retail Mapping was concerned only with providing the organization
with all the necessary information required to strengthen the position of PEPSI in
ANANATHAPURAMU

in the form of reports incorporating all information in an

analyzed and summarized form. But some critical and major issues, which have been
identified on account of extensive analysis, required suggestions to be put forward on the
basis of the current market scenario.

There should be uniformity in, schemes, and discounts, which are offered to the
retailers and should be based on a specific parameter such as sales volume, to
avoid dissatisfaction and biasness among the retailers.

Activities of sub dealers and super stockiest should be controlled and checked in
order to ensure fair prices and distribution of schemes and incentives to small
retailers to avoid discontent among smallholdings and outlets.

100

Every possible step should be taken for the satisfaction of the retailers, as they are
the most important supplement to the sales promotion measures and nationwide
advertising campaigns of the company in context of boosting the sales and
enhancement of the brand image of PEPSI.

The operations of the bottling plants of the surrounding territories should be

controlled in order to ensure that they do not supply the product in other territories
not under their area of operation.

101

The company should modify its advertising strategy and educate the customers about
its age-old existence and enhance its brand image. This will appeal to the target
customers of middle and older age groups apart from the younger generation in which
PEPSI has a good hold.

First and foremost things are that, whatever the policy is going to be formulated it
should not be same for all the areas. Different policies should be framed and
implemented at different areas by looking and keeping various variables in the
mind like buying habits, preferences, education level financial position of that
particular area and standard if living etc.

Rural market being a very potential segment needs very quick and prompt efforts
to be taken to capture this high volume market.

Many retailers complained regarding irregularly in visit by the executives. They

also said that executive give very bad response to their complaints. It is necessary
that executive should make frequent visit to cover each outlet and try to provide
them best

102

Pouches, foreign particles were found in few bottles, so proper quality control
measures should be implemented as companys reputation are at stake.

There is a great market of soda (1 Lit.) but the supply of this pack is very poor, so
the supply should be made possible quickly.

Quality of PET bottle should be improved so that most problems can be

minimized.

Soft drink is still considered a treat virtually a luxury, so it possible company

should cut down its price especially of cans.

Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets etc
should be made at regular interval.

103

Claim should be provided to the deserving retailers.

Wall painting should be made regularly in the area, as it is a good medium of

advertisement.

Proper attention should be given to the retailers problem so that they take interest
to increase the sale.

Proper advertisement should be made at railway station, bus stand, posh area,
major market and economies place etc.

104

A company may create favorable impression among the youth if they sponsors
small events like college festivals, university programs, school functions, fashion
shows, quiz programs etc.

Retailers need display material. To enhance the marketing of the product.

105

Limitations

106

LIMITATIONS
The retailers in many cases reluctant to answered many questions.

The respondents may be biased on influenced by some other factors.

Time and money were the greatest limitation in carrying out the survey.

A number of retailers (pan-shop) being illiterate, it took us lot of time in

collecting information.

The mere information which we get from the retailers is not sufficient to arrive at
a conclusion.

The seasonal changes affect the sell.

107

MAIN
KEY POINTS

108

MAIN KEY POINTS

Service aspect of agencies is very effective, they deliver their product according
to the demand a just in time.

After conducting the market survey of retailer in ANANATHAPURAMU city,

I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of PET.

After analyzing the market and calculate the weight age, the result comes out that
Mountain Dew is the leading product of Pepsi-Cola.

Consumers do have a demand for 200 ml and 2 lit. bottle.

Retailers have problem in display material.

Most of the place like cinema hall and educational institutions are dominated by
Pepsi-Cola.
109

 Retailers have complaint regarding the PET, that more better quality bottle should
be used.

Aquafina (Pepsi-Cola) in ANANATHAPURAMU city dominated Kinley (CocaCola) mineral water.

Retailers have a demand of some offers and free gifts.

110

 Kinley soda (Coca-Coal) is also dominated by Lehar soda (Pepsi-Cola) in

ANANATHAPURAMU ..

Maaza (Coca-Cola) is also dominated by Slice(Pepsi-Cola).

It was seen that Lehar Soda (1 lit.) in particular remains short during the season.

In the market there is only a retailer on which the sale of the different product of
different company depends

111

Bibliogra
phy

112

BIBLIOGRAPHY

MARKETING MANAGEMENT
KOTLER PHILIP
Pearson Education singapore 12th edition

MARKETING OF PRINCIPLE
.GARY ARMSTRONG

Pearson Education 11th edition

RESEARCH METHODOLOGY
.KOTHARI C. R.
New age international publisher
(ANANATHAPURAMU )
2nd revised edition 2004 reprint 2008

113

MAGAZINES:
Advertising Management
Business India
Business Today
Business World

WEBSITE:
www.pepsiworld.com
www.pepsico.com
www.google.com

114

ANEXURE

115

Questionn
aire

116

117

QUESTIONNAIRE
Name

____________________________________

Address

____________________________________
____________________________________

Contact No.

____________________________________

Q.1. Are your customer satisfied with Pepsi?

a. yes
b. no

Q.2. Do you provide home delivery of Pepsi ?

a. Yes
b. no

Q.3. How many houses?

118

Q.4. Which brand of soft drink do you sell?

a. Only Pepsi-Cola
b. Only Coca Cola

c. Both.

Q.5. Which quantity of soft drinks you have?

a. 200 ml
b. 300 ml
c. 500 ml
d. 2 lit.
e. All

Q.6. Which brand of soda do you sell?

a. Leher Soda (Pepsi-Cola)
b. Kinley(Coca Cola)
119

Q.7. Which brand of mineral water do you sell?

a. Aquafina (Pepsi-Cola)

b. Kinley (Coca Cola)

c. Others.

Q.8. Chilling equipment owned by you?]

a. Only Pepsi-Cola
b. Only Coca Cola
c. Both
.

Q.9. Do you get timely supply of these brands with proper schemes?

a. Yes
b. No.

120

Q.10. Is your chilling equipment working properly?

a. Pepsi-Cola

= Yes. No.

b. Coca-Cola =

Yes. No.

Q.11. During breakdown of chilling equipment who gives better service?

a. Only Pepsi-Cola

b. Only Coca Cola

Q.12. Whose racks do you own?

a. Only Pepsi-Cola
b. Only Coca Cola
c. Both.

Q.13. Is there increase in sales due to display of the racks?

a. Yes
b. No.
121

Q.14. Availability of glow boards provided by company through promotional scheme.

a. Yes
b. No.

Q.15. Are your customer SATISFIED of PEPSI schemes ?

a. Yes
b. No
c. Cant Say

Q.16. Is the brand of pepsi is high on your sale?

a. yes
b. no
c. cant say

Q.17. . What %tage increase in sale you get after the schemes offered by PEPSI?
a. 5-15%
b.25- 30%

122

c. more than 50

Q.18
200 ML
STOCK
PCI
REGULAR

600 ML
PCI

300ML
CCX

PCY

CCX

CCX

2 LIT
PCI

CCX

STOCK
PET

123