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SUMMER TRAINING PROJECT REPORT ON


“ DEVELOPING MODEL MARKET FOR PEPSICO”
SUBMITED TOWARDS PARTIAL FULFILMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT


(Approved by AICTE, Govt. of India)
(Equivalent to MBA)
ACADMIC SESSION
2009-11

SUBMITTED BY-
ADITYA AGARWAL
(BM-09241)
SUBMITTED TO-

FACULTY GUIDE INDUSTRY GUIDE


Mr. MANOJ SAPORI MR. VIPIN BHATIA
CRC HEAD TDM
IMS GHAZIABAD PEARL DRINKS LTD.

INSTITUTE OF MANAGEMENT STUDIES


C-238, BULANDSHAHAR ROAD,
LAL QUAN, PB. NO .57
GHAZIABAD – 201009

ACKNOWLEDGEMENT
It is arduous to pen down the extent of my feelings, yet through this
acknowledgement, I wish to convey my deepest regards and
gratitude towards those who helped me to carry out and present
this work.

I am grateful to Dr. R. K. Bharadwaj (Director General, IMS


Ghaziabad) and Prof. Timira Shukla (Chairperson, PGDBM), and Prof.
Sachin Malhotra (Chairperson, PGDM-IT) for providing me an
opportunity to work on this project and also for their valuable
guidance and support.

I am deeply indebted to my guide and mentor, Mr. Manoj Sapori

(crc head) for the valuable guidance, constant encouragement &


constructive criticism he provided, without which, it would have
been impossible to complete this project.

I am also grateful to my Industry guide, Mr. Vipin Bhatia (TDM PDL)


under whom I was allocated the project and his excellent guidance
and continuous support gave me knowledge and energy to
complete the project accurately on time.

I take this opportunity to thank all the customers and retailers all
those peple who spared their precious time to provide me with
valuable inputs for project without which it would have not been
possible.

Lastly, I would express my grateful thanks to my family members


and my friends who inspired me to put in my best efforts for the
preparation of the Project Report.

Aditya Agarwal

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CERTIFICATE

This is to certify that the project titled “DEVELOPING


MODEL MARKET FOR PEPSICO” is a bonafied work
carried out by Mr. ADITYA AGARWAL in partial fulfillment
of the requirement for the completion of the post graduation
deploma in business management from Institute of Management
Studies Ghaziabad, under the guidance and direction.

Internal Guide: Industrial Guide


Mr. Manoj Sapori Mr. Vipin Bhatiya

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DECLARATION

I, ADITYA AGARWAL, do hereby declare that the summer internship project report
submitted by me for the partial fulfillment of requirement for the Post Graduate
Diploma in Management of Institute of Management Studies Ghaziabad has not
been submitted to any other university/ institution, company for the reward of any
degree/ diploma certificate.

Aditya agarwal
Enrollment No (BM-09241)

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LIST OF CONTENT

TITLE PAGE……………………………………………………… 1
ACKNOWLEDGMENT………………………………………….. 2
CERTIFICATE…………………………………………………… 3
DECLERATION………………………………………………….. 4
LIST OF TABLES & FIGURE…………………………………... 5
EXECUTIVE SUMMARY……………………………………….. 6
CHAPTER 1. OBJECTIVE OF PROJECT WORK…………….7
CHAPTER 2. INTRODUCTION…………………………………8
 Working methodology………………………………..9
CHAPTER 3. ABOUT PEPSICO COMPANY
 Industry profile………………………………………...10
 Company profile……………………………………….13
 Mission & values……………………………………….17
 Pepsico India………………………………………….. 20
SWOT ANALYSIS………………………………………………..29
PEST ANALYSIS…………………………………………………31
DISTRIBUTION CHANNEL & STRATEGIES………………..35
ADVERTISING & PUBLICITY…………………………………39
PEPSI V/S COKE…………………………………………………40
CHAPTER 4. RESEARCH METHODOLGY
Research design…………………………………………..44
Data collection……………………………………………45
List of outlets……………………………………………..47
Data analysis……………………………………………...49
FINDINGS……………………………………………………......57
CONCLUSION…………………………………………………...58
SUGGESTIONS…………………………………………………..59
LIMITATION OF STUDY………………………………………60
BIBLIOGRAPHY…………………………………………………61
ANNEXURE………………………………………………………63

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EXECUTIVE SUMMARY

Gone are the days when people were very unsure about the future and hardly cared
About it in terms of technological developments. But the situation has changed now.
In the new millennium, people often feel a growing uneasiness about the future.
Certainly many countries today are suffering from chronic high unemployment, a
persistent deficit of economy and gradual deterioration of purchasing power.
Nations are passing through a phase of rapid transformation. Two forces are mostly
responsible for these types of drastic changes; they are explosive growth of trade and
international competition and the other force like technological change. This new era
has witnessed remarkable advancement in the availability of information and a
number of large companies operations in such market where the principal of natural
selection lead to “survival of the fittest”.
This report introduces a brief study of marketing strategy and sales promotion
technique of Pepsi-Co for retailers. The study report will provide an opportunity to
know retailers psychographic needs, it may provide an opportunity to the PepsiCo to
frame a good future plan to satisfy maximum needs, taste preferences of the retailers.
The Analysis report provides detailed information about prevailing market
competition and thus prepare itself to meet the market challenge by making
adjustment in its new strategy and promotions activities.

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CHAPTER 1

OBJECTIVE OF PROJECT WORK

1.To increase the brand loyalty among the retailers.

2.To increase the retailer satisfaction.

3.To ensure the availability & visibility of products in outlets.

4. To ensure visi purity and charging.

5. To know the right picture of market of saket(south delhi).

6.To know retailers expectation from company.

7. To find out loop holes in existing system and execute solution steps.

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CHAPTER 2

INTRODUCTION OF PROJECT

Beverage industry is one of the fast growing industries in India .it can be divided into
two sections i.e. carbonated and non-carbonated. the carbonated drinks that can be
further classified into cola, lemon orange, mango and apple segments.

Marketing includes all the activities like promotion, distribution, advertising etc. To
fulfill all the segments of consumers. Marketing is also to convert social needs into
profitable opportunities. So this topic provides all the essentials to theoretical
knowledge with practical knowledge and to inculcate the efficiency. It is also
requirement for the company to improve their service and product quality for
achieving their ultimate goal.

As far as the soft drink market is concerned, it is facing the cut throat competition
because of the availability of a large number of indirect as well as direct competitors.
Single company offers the soft drink to the market in different taste and flavors. In
this industry entire range of flavors are produced by other competitors also. More
often it becomes impossible to differentiate between the same flavors of two different
brands, when served in plane container, range also. All these factors together make
the situation complicated. Besides both corresponding brands have the similar price.

This project is made on the project title is

“Developing model market for PepsiCo”

The purpose of this project is to know about: the Consumption Of soft drinks has
increased tremendously in India. Every age of group like it, now days it become a
household necessary item. In field of marketing much kind of surveys are conducted
by PepsiCo India from time to time. This is end & last feedback for any kind of

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organization. By the specific survey, which was conducted by organization want to
know about the right picture of market of saket.

This work-study provides extensive information about the position of company’s


brand in saket that comes under south Delhi.

WORKING METHODOLOGY

ROUTE VISIT:

We visited the route with the company’s vehicle where the company supplies the
products.
I observed the display norms for outlets in all route & each type of outlet. Found out
which outlets owner want to buy & sell PepsiCo products. We tried to solve retailer’s
problems & we checked sales promotion schemes they are getting.
We also checked signboard, wall painting, rack, stand rack, counter rack &posters.
In last I took retailers feedback. On weekly bases I filled this information in a special
format for reporting provided by organization and sent it to the concerned person.
On weekly bases I discussed the various problems with the territory development
manager of that particular area.

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CHAPTER 3

INDUSTRY PROFILE

Fast moving consumer goods (FMCG), are products that are sold
frequently at relatively low cost. Though the absolute profit made on
FMCG products is relatively small, they generally sell in large
quantities, so the cumulative profit on such products can be large.
Examples of FMCG generally includes a wide range of frequently
purchased consumer products such as soft drink, toiletries, soap,
cosmetics, toothpaste and powders, detergents etc, It also includes
pharmaceuticals, consumer electronics, packaged food products,
although these are often categorized separately.

Soft drinks industry:

The soft-drink industry comprises companies that manufacture


nonalcoholic beverages, carbonated mineral waters or concentrates
and syrups for the manufacture of carbonated beverages. Naturally
occurring bubbling or sparkling mineral waters have been famous
for thousands of years- the ancient Greeks believed that such
waters had medicinal properties and bathed in them regularly, the
Romans established resorts around mineral springs throughout
Europe. In the 1500s the village of Spa in Belgium became very
famous for its waters, which by the early 1600s were sold, in
bottles, as far away as London, England.

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Development of the first man-made carbonated water is credited to
Joseph Priestley, the British scientist who discovered oxygen. In year
1772 he invented a method of "pushing" carbon dioxide into water
by dissolving it under high pressure, thus creating fairly long-lasting
bubbles. The technique led to development of the soft-drink
industry. By the very beginning of the 19th century, carbonated
water was being made commercially in France and North America,
shortly thereafter, flavors were added to enliven the taste. In the
1820s, small carbonated bottling operations were established in
Canada, producing carbonated drinks in refillable bottles that were
merchandised as medicinal elixirs, tonics.

The main principle of "pushing" carbon dioxide is still used, but now
the water is first purified in a process known as "polishing." Cooled
carbon dioxide is then injected at the pressures of 275-550
kilopascals. Some of the early drinks bottled in Canada were called
Birch Beer, Ginger Beer, Sour Lemon, None-Such Soda Water. The
first carbonated beverage bottles were sealed with corks held
tightly in place with a wire binding. Because they had to be stored
neck down so that the cork would not dry and allow carbonation to
leak away, they were manufactured with rounded bottoms. The
Hutcheson Spring Stopper replaced such closures. The crown cap
was introduced in 1905 and improved versions are still widely used,
although they are gradually being replaced, especially on larger
containers, with enclosable screw caps.

Other packaging innovations since the mid-1960s include canned


carbonated beverages and nonreturnable glass bottles and
containers made from rigid plastics. However, an effort is being
made, often through provincial legislation, to increase the use of the
returnable glass containers.

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The industry is regulated by federal and provincial agencies, three
of the most important being CONSUMER AND CORPORATE AFFAIRS
(it is responsible for the Consumer Packaging and Labeling Act),
HEALTH CANADA (which administers both the Food and Drugs Act)
and Environment Canada (which focuses on environmental
matters).

The introduction of diet-carbonated beverages has totally changed


the industry's profile. Many years ago, in response to increasing
consumer diet consciousness, the industry introduced the first
successful sugar-free diet drinks. But here questions were raised
about the safety of this additive and, based on existing scientific
data, Health Canada banned its use in Canadian commercial FOODS
AND BEVERAGES. This decision, estimated to have cost the industry
more than $17 million, was a setback to diet-drink development.
Now, a new sugar-free additive, aspartame, has been approved for
the use in diet soft drinks, and the cyclamate situation is not
expected to recur because aspartame consists of amino acids,
which occur naturally. Just before the saccharin ban in 1977, diet
drinks accounted for about 10% of the soft-drink market, following
the ban the diet share dropped to about 3%, consisting of
beverages partially sweetened with the small amounts of sugar.

In the year 1982, the first full year that aspartame was used in
Canada, diet drinks increased by 16.25% of total soft-drink sales,
while the total soft-drink industry grew 10%. In 1987 total soft-drink
sales increased 7.3% over 1986, while diet soft-drink sales
increased by 12.7%. This single development has encouraged the
strong growth in the industry.

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COMPANY PROFILE: PEPSICO INTERNATIONAL

PepsiCo is one of the largest FMCG companies there is that is


engaged in the food, beverage, and snack industries. PepsiCo is
engaged in the snack food, soft drink, juice, and fast food franchise
businesses. The Company, through its subsidiaries, markets, sells
and distributes various snacks in the United States and
internationally, manufactures concentrates of Pepsi, Mountain Dew
and other brands for sale to franchised bottlers in the US and

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international markets and produces, markets, sells and distributes
juices under several Tropicana trademarks in the United States and
internationally. PepsiCo’s domestic snack food business is
conducted by the Frito-Lay North America, and its international
snack food business is conducted through Frito-Lay International.
The Company's soft drink business operates as the Pepsi-Cola
Company and is comprised of two business units one is Pepsi-Cola
North America and Pepsi-Cola International. In December 2000, the
Company announced an agreement under which a subsidiary of the
PepsiCo will merge with Quaker Oats Company, and Quaker will
become a wholly owned subsidiary of the PepsiCo. Quaker is a large
worldwide marketer of foods and beverages. The proposed merger
is subject to the certain closing conditions, including approval by
shareholders of both companies and regulatory approvals. The
transaction is expected to close in the first half of 2000. PepsiCo is
also operating several food franchises including Pizza Hut, KFC, and
Taco Bell etc.

PepsiCo- The Parent Company:

PepsiCo, is one of the world's largest food and beverage companies.


The company's principal businesses include

1. Frito-Lay snacks

2. Pepsi-Cola beverages

3. Gatorade sports drinks

4. Tropicana juices

5. Quaker Foods

PepsiCo Milestones:

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 2005, PepsiCo, Launches Pepsi Limon in Peru

 2005, PepsiCo India re-launches Mirinda cold drink

 2006, Tropicana debuts Tropicana Pure a new line of 100%


premium juices

 2006, Ms. Indra Nooyi named Chief Executive Officer of


PepsiCo as of October 1, 2006

 2006, Pepsi signs five-year sponsorship renewal with Major


League Baseball Properties making Pepsi the "Official Soft
Drink of Major League Baseball"

 2007, Aquafina launches Aquafina Alive - a low calorie,


vitamin-enhanced water beverage

 2007, Tropicana launches The Tropicana Fruit Squeeze, a 20-


calorie drink with real Tropicana fruit juice

 2007, Pepsi launches "Design Our Pepsi Can" National


Promotion

 2007, The Indra Nooyi receives the Outstanding American by


Choice Award

 2007, PepsiCo makes in Fortune magazine's '100 Best MBA


Employers' list

 2007, Diet Pepsi Launches in New Look, New Ad Campaign


and New Attitude - Diet Pepsi's "More Cola Taste"

 2007, Mountain Dew Unveils unique, limited edition


aluminum bottles

 2007, PepsiCo named a 2007 Working Mother 'Best Company


for Multicultural Women'

 2007, Pepsi wins Webby Award for its execution of the "Best

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Sports Website"

 2008, Frito-Lay Turkey builds the world's first organic waste


treatment facility

 2008, PepsiCo honored by the Environmental Protection


Agency as water efficiency leader

 2008, PepsiCo recognized as the Food & Beverage Packaging


magazine's 2008 Beverage Packager of the Year

 2008, Forbes names PepsiCo among its 'Best Big Companies'

 2009, PepsiCo is named to the 'Best Companies for Multi


Cultural Women' list by Working Mother magazine

 2009, Pepsi wins 'Football Promoter of the Year' award in


Nigeria for its involvement with the development of the
grassroots football

 2009, PepsiCo International introduces world first non-


alcoholic, flavored malt drink, Bario, into Saudi market

 2009, PepsiCo is listed in the top 20 'Ideal Employer MBA


Ranking' in Fortune magazine

 2009, PepsiCo introduces three new products in market—


Pepsi Natural, Pepsi Throwback and Mountain Dew
Throwback, all sweetened with natural sugar

 2009, PepsiCo India launches The Nimbooz by 7Up, a


beverage inspired by India's favorite lemonade drink

 2009, PepsiCo introduces the first climate-friendly vending


machines to the U.S.

 2009, Aquafina launches the Eco-Fina Bottle, the lightest

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weight bottle in the market

Board of Directors: PepsiCo is the company full of strong,


talented individuals starting with the company leadership. Get to
know the inspiring people helping lead the PepsiCo on its
'Performance with Purpose' journey.

Indra K. Nooyi John Compton


Chairman and CEO of CEO of PepsiCo Americas
PepsiCo Foods

Massimo d'Amore Eric Foss


CEO of PepsiCo CEO of Pepsi Beverages
Beverages America Company

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Zein Abdalla Saad Abdul-Latif
CEO of PepsiCo Europe CEO of PepsiCo Asia,
Middle East, Africa

A. Salman Amin Mitch Adamek


Executive Vice Senior Vice and Chief
President Sales and Procurement officer
Marketing of PepsiCo

Mission And Vision:

Mission:

Our mission is to be the world's premier consumer Products


Company focused on convenient foods and beverages. We seek to
produce financial rewards to investors as we provide opportunities

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for growth and enrichment to our employees, our business partners
and the communities in which we operate. And in everything we do,
we strive for honesty, fairness and integrity.

Vision:

"PepsiCo's responsibility is to continually improve all aspects of the


world in which we operate – environment, social, economic –
creating a better tomorrow than today."

Our vision is put into action through programs and a focus on


environmental stewardship, activities to benefit society, and a
commitment to build shareholder value by making PepsiCo a truly
sustainable company.

Performance with Purpose:

At PepsiCo, we are committed to achieving business and financial


success while leaving a positive imprint on the society – delivering
what we call Performance with Purpose.Our approach to superior
financial performance is the straightforward – drive shareholder
value. By addressing social and the environmental issues, we also
deliver on our purpose agenda, which consists of the human,
environmental, and talent sustainability.

PepsiCo Values & Philosophy:

Our Values & Philosophy are a reflection of the socially and


environmentally responsible company we aspire to be. They are the
foundation for the every business decision we make.

Commitment:

We are committed to delivering the sustained growth through


empowered people acting responsibly and building trust.

Sustained Growth is fundamental to motivating and


measuring our success. Our quest for sustained growth

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stimulates innovation, places a value on results, and helps us
understand whether today's actions will be contribute to our
future. It is about the growth of people and company
performance. It prioritizes both making a difference and
getting the things done.

Empowered People means we have the freedom to act and


think in ways that we feel will get the job done, while adhering
to processes that ensure proper governance and being
mindful of company needs beyond our owns.

Responsibility and Trust forms the foundation for the healthy


growth. We hold ourselves both personally and corporately
accountable for everything we do. We must earn the
confidence others place in us as individuals and as a
company. By acting as good stewards of the resources
entrusted to us, we strengthen that trust by walking the talk
and following through on our commitment to succeeding
together.

Guiding Principles:

We must always strive to:

 Care for our customers, our consumers and the world we live
in. we are driven by the intense, competitive spirit of the
marketplace, but we direct this spirit toward the solutions that
benefit both our company and our constituents. Our success
depends on the thorough understanding of our customers,
consumers and communities. To foster this spirit of
generosity, we go the extra mile to show we care.

 Sell only products we can be proud of. The true test of our
standards is our own ability to consume and the personally

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endorse the products we sell. Our confidence helps ensure the
quality of the products, from the moment we purchase
ingredients to the moment it reaches the consumer's hand.

 Speak with truth and candor. We tell the whole story, not just
what's convenient to our individual goals. In addition to being
the clear, honest and accurate, we are responsible for
ensuring our communications are understood.

 Balance short term and long term. In every decision, we weigh


both short-term and long-term risks and benefits. Maintaining
this balance helps sustain our growth and ensures our ideas
and the solutions are relevant both now and in the future.

 Win with diversity and inclusion. We embrace people with


diverse backgrounds, traits and the ways of thinking. Our
diversity brings new perspectives into the workplace and
encourages innovation, as well as the ability to identify the
new market opportunities.

 Respect others and succeed together. Our mutual success


depends on the mutual respect, inside and outside the
company. It requires people who are capable of working
together as part of a team or informal collaboration. While our
company is built on individual excellence, we also recognize
the importance and value of teamwork in turning our goals
into accomplishments

The PepsiCo Family:

Meet the three major divisions of the PepsiCo family:

 PepsiCo Americas Beverages.

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 PepsiCo Americas Foods.

 PepsiCo International.

PEPSICO INDIA

INTRODUCTION:

Pepsi Co entered India in 1989 and in the short span of a little more
than a decade it became the country's largest selling soft drinks
company. The Company has invested heavily in India making it one
of the largest multinational investors. The group has built an
expansive beverage, snack food and exports business and to
support the operations are the group's of 43 bottling plants in India,
of which 15 are company owned and 28 are franchisee owned.

PepsiCo stays committed to providing its consumers with best


quality beverages. Its diverse portfolio of brands include the flagship
cola brand Pepsi, Diet Pepsi, 7Up, Mirinda, Mountain Dew,Slice fruit
drink, Tropicana brand 100% fruit juices in the various flavors,
Aquafina packaged drinking water, the Gatorade plus local brands
Lehar Evervess Soda and Dukes Lemonade and Mangola.

PepsiCo is also a dominant player in snack food segment in India.


PepsiCo's snack food company Frito-Lay is the leader in the branded
potato chip market. It manufactures Lay's Potato Chips, Cheetos
extruded snacks, Uncle Chips, Kurkure and Lehar brands, and
Quaker Oats.

PepsiCo is one of the largest MNC exporters in the India and its
export business consists of three categories: agri business,
commodities and Pepsi system sales. PepsiCo has made the
significant investments with the Punjab Agriculture University to

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develop the comprehensive agro-technology program that has
helped thousands of the farmers across India improve the yield of
their farms and the quality of their agricultural products. PepsiCo
has leveraged its knowledge in the contract farming to develop
seaweed cultivation in the Tamil Nadu and has partnered with the
Government of Punjab to help farmers of the state through the
utilization of developed technology for the citrus farming.

As part of its sustainable development initiatives, PepsiCo India has


been a committed leader in the promotion of rainwater harvesting,
water conservation recycling and reduction of effluent discharge.
PepsiCo has also established the zero waste centers and PET
recycling supply chains and assisted victims of natural disasters.
PepsiCo stays dedicated in its endeavor to develop the community
outreach programs by supporting rural water supply schemes,
administering medical camps in villages, providing computers to
rural schools and creating opportunities for women in rural areas
through vocational training as an alternate means of the livelihood.

OVERVIEW OF PEPSICO INDIA

PepsiCo mission:

"To be the world's premier consumer products company focused on


the convenience food and beverages. We seek to produce healthy
financial rewards to the investors as we provide opportunities for
growth and enrichment to our employees, our business partners and
the communities in which we operate and in everything we do, we
strive for honesty, fairness and the integrity."

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PepsiCo in India:

PepsiCo has established its business operations in India in 1989 and


has grown to become the one of the country’s leading food and the
beverage companies. One of the largest multinational investors in
the country, PepsiCo has established a business, which aims to
serve the long term dynamic, needs of Indian consumers.

Initially PepsiCo has joint venture with the Punjab government-


owned Punjab Agro Industrial Organization and the Voltas India
Limited. This joint venture marketed and sold Lehar Pepsi until
1991, when the use of foreign brands was allowed, PepsiCo
bought out its partners and ended the joint venture in 1994.
Others claim that firstly Pepsi was banned from the import in
India, in 1970, for having refused to release the list of its
ingredients and in 1993, the ban was lifted, with Pepsi arriving on
the market shortly afterwards.

These controversies are a reminder of "India's sometimes


acrimonious relationship with the huge multinational companies."
Indeed, some argue that PepsiCo and Coca Cola company have
"been major targets in part because they are well-known foreign
companies that draw plenty of the attention."

In 2003, the Central for Science and Environment, a non


governmental organization New Delhi, said that aerated waters
produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and tested products included Coke,
Mirinda, 7Up, Thums Up, Fanta, and Sprite. CSE found that the
Indian produced Pepsi's soft drink products had 36 times the level
of pesticide residues permitted under the European Union
regulations, Coca Cola's 30 times. CSE said that it had tested the

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same products in the US and found no such residues. However,
this was the European standard for water, not for the other drinks.
No law bans the presence of pesticides in drinks in India.

The Coca-Cola Company and PepsiCo angrily denied allegations


that their products are manufactured in India contained toxin
levels far above the norms permitted in developed world. But an
Indian parliamentary committee, in 2004, backed up CSE's
findings and by a government-appointed committee, is now trying
to develop the world's first pesticides standards for soft drink
company. Coke and PepsiCo opposed the move, arguing that lab
tests are not reliable enough to detect minute traces of pesticides
in complex drinks.

As of 2005, The Coca-Cola Company and the PepsiCo together hold


97% market share of soft drink sales in the India. PepsiCo has also
been accused by the Puthussery panchyat in the Palakkda district in
the Kerala, India, of practicing "water piracy" due to its role in the
exploitation of ground water resources resulting in the scarcity of
drinking water for the panchayat's residents, who have been
pressuring the government to close down the PepsiCo unit in the
villages.

In the year 2006, the CSE again found that soda drinks, including
both the Pepsi and the Coca-Cola, had high levels of pesticides in
their drinks. Both the PepsiCo and The Coca-Cola Company maintain
that their drinks are safe for the consumption and have published in
newspaper advertisement that say that pesticide levels in their
products are less than those in other foods such as tea, fruit and
dairy products.

In the Indian state of Kerala sales and production of Pepsi-Cola,


along with other soft drinks, was banned by the state
government in 2007, but this was reversed by the Kerala High

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Court merely a month later. Five other Indian states have
announced a partial bans on the drinks in the schools, colleges
and the hospitals.

PepsiCo India and its partners have invested more than USD1 billion
since the company was established in the country. PepsiCo India
provides the direct and indirect employment to 150,000 people
including suppliers and the distributors.

PepsiCo nourishes consumers with a range of the products from


treats to healthy eats, which deliver joy as well as nutrition and,
good taste. PepsiCo India’s expansive portfolio includes the iconic
refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in
addition to low calorie options such as the Diet Pepsi, hydrating and
nutritional beverages such as the Aquafina drinking water, isotonic
sports drinks Gatorade, Tropicana100% fruit juices, and juice based
drinks ,Tropicana Nectars, and Slice. Local brands Lehar Evervess
Soda, Dukes Lemonade and Mangola add to the diverse range of the
brands.

PepsiCo’s foods company, is the leader in the branded salty snack


market and all the Frito Lay products are free of trans-fat and the
MSG. It manufactures Lay’s Potato Chips Uncle Chipps and the
traditional snacks under the Kurkure and Lehar brands. The
company’s high fiber breakfast Quaker Oats, and low fat and
roasted snack options enhance the healthful choices available to the
consumers. Frito Lay’s core products, Kurkure, Uncle Chipps and
Cheetos are cooked in Rice Bran Oil to significantly reduce saturated
fats and all of its products contain voluntary nutritional labeling on
their packets.

The group has built an expansive beverage and foods business. To


support its operations, PepsiCo has total of 42 bottling plants in
India, of which 13 are the company owned and 29 are the
franchisee owned. In addition to, PepsiCo Frito Lay foods division

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has three state-of-the-art plants. PepsiCo’s business is based on its
sustainability vision making tomorrow better than the today.
PepsiCo’s commitment to the living by this vision every day is
visible in its contribution to the country, consumers and the farmers.

Soft Drink Market in India:

India is one of the top most five markets in terms of growth of the
soft drink market. The per capita consumption of the soft drinks in
the country is estimated to be around six bottles per annum in the
year 2003. It is very low compared to the corresponding figures in
US (600+ bottles plant per annum).

The major players in the soft drinks market in India are PepsiCo and
Coca-Cola, like elsewhere in the world. Coca Cola acquired the
number of local brands like Limca, Thums Up when it entered in
Indian market for the second time. Pepsi Co’s soft drink portfolio
also consists of the Miranda and 7Up along with the Pepsi. The
market share of each of the company is more or less same, though
there is a conflict in the estimate quoted by the different sources.

The major ingredient in the soft drink is water. It constitutes close to


91% of the soft drink content. Added to this, the drink also contain
sweeteners, Citric Acid, Malic acid, Color, Preservative, Anti Oxidant.

27
PRICE LIST OF PRODUCTS:

PEPSI 200ML Rs. 10


300ML Rs..13
600ML Rs.22
2LT Rs.60
MIRINDA 200ML Rs. 10
300ML Rs..13
600ML Rs.22
2LTR Rs.60
MOUNTAIN DEW 200ML Rs. 10
300ML Rs..13
600ML Rs.22
2LTR Rs.60
7 UP 200ML Rs. 10
300ML Rs..13
600ML Rs.22
2LTR Rs.60

28
SLICE 250ML Rs. 13
600ML Rs..25
1.25LTR Rs.50

NIMBOOZ 200ML Rs. 10


350ML Rs..15

TROPICANA 200ML Rs.15

600ML Rs.30

AQUAFINA 1LTR. Rs.14

29
Consumption Partner in India:

The Indian soft drinks market is not under any kind of regulation.
Prevention of the Food adulteration act 1954 does not include the
soft drinks. None of the BIS standards that existed before the
August 2003 had any guidelines or any set of criteria for the residue
levels of pesticides in the soft drinks. But different lie agencies have
set standards for the residue levels of the pesticides. The European
Economic Community sets the maximum admissible concentration
of the individual pesticides and related products in the drinking
water at 0.2 parts per billion to ensure that the toxicity is not the
dangerous to human beings. For a few pesticides like aldrin,
heptachlor epoxide the admissible limit is even more stringent, i.e.,
0.04 parts per billion.

Performance with purpose:

Performance with the Purpose articulates PepsiCo India's belief that


its businesses are the intrinsically connected to the communities
and the world that surrounds it. Performance with the Purpose
means delivering superior financial performance at the same time
as we improve the world.

30
To deliver on commitment, the PepsiCo India will build on the
incredibly strong foundation of the achievement and scale up its
initiatives while focusing on the following 4 critical areas that have a
business link and where we believe that we must have the most
impact.

Product offered by PepsiCo under beverages section in


India:

Our Goal is to nourish the consumers with a range of products that


deliver great taste, convenience and affordability from the simple
treats to healthy offerings. A range of products that deliver the
great taste, convenience and affordability from the simple treats to
healthy offerings.

PepsiCo India's expansive portfolio includes the iconic refreshment


beverages such as Pepsi, 7UP, Nimbooz, Mirinda, Slice and in
addition to low calorie options such as the Diet Pepsi, hydrating and
nutritional beverages such as the Aquafina drinking water, isotonic
sports drinks, Tropicana 100%, Tropicana Twister fruit juices.

31
SWOT analysis of PepsiCo:

Strength: Pepsi has a broader product line and the outstanding


reputation.

 Merger of the Quaker Oats produced synergy across the


board.
 Record revenues and the increasing market share.
 Lack of capital constraints
 Great brands, strong distribution and innovative capabilities
 Number one maker of snacks, such as corn chips and the
potato chips

32
 PepsiCo sells its three products through the same distribution
channel.
For example, combining the production capabilities of the Pepsi,
Gatorade and Tropicana is a big opportunity to reduce the costs,
improve efficiency and smooth out the impact of the seasonal
fluctuations in demand for the particular product.

Weakness:

 Pepsi hard to inspire vision and the direction for large global
company.
 Not all the PepsiCo products bear the company name
 PepsiCo is far away from the leader Coca-cola in the
international market demand is highly elastic.
Opportunity:

 Food division should be expand internationally


 Noncarbonated drinks are fastest-growing part of the industry
 There are increasing trend toward the healthy foods
 Focus on the most important customer trend - "Convenience".

Threats:

 F&B industry is now mature


 Pepsi is blamed for pesticide residues in their products in one
of their most promising emerging market like in India
 Over 50% of the company's sales come from Frito-Lay; this is

33
a threat if the market takes a downturn
 PepsiCo now competes with the Cadbury Schweppes, Coca-
Cola, and Kraft foods (because of broader product line) which
are well-run and the financially sound competitors.
 Size of the company will demand a varied marketing
program; Social, cultural, economic, political and
governmental constrains.

PEST Analysis:

The PEST analysis examines changes in a marketplace caused by


Political, Economical, Social and Technological factors.

34
P: Political change, from one party to another in control- for
example the rise in private healthcare and the privatizations under
Conservative governments.

Political Analysis for Pepsico

Non-alcoholic beverages fall within the food category under the


FDA. The government plays a role within the operation of
manufacturing these products in terms of the regulations. There are
potential fines set by the government on companies if they do not
meet the standard of laws.

The following are some of the factors that could cause pepsico
company's actual results to differ materially from the expected
results described in their underlying company's forward statement
are:-

 Changes in laws and regulations, including changes in the


accounting standards, taxation requirements, and
environmental laws in domestic or foreign jurisdictions.

 Changes in the non-alcoholic business environment. These


include, without limitation, competitive product and the
pricing pressures and their ability to gain or maintain share of
sales in the global market as a result of action by competitors.

 Political conditions, especially in the international markets,


including civil unrest, government changes and restrictions on
the ability to transfer capital across borders.

 Their ability to penetrate the developing and emerging

35
markets, which also depends on the economic and political
conditions, and how well they are able to acquire or form
strategic business alliances with local bottlers and make the
necessary infrastructure enhancements to the production
facilities, distribution networks, sales equipment and
technology.

E: Economic change, for example a recession creating increased


activity at the lower ends of the product price ranges. Rate of
interest rises depressing business and causing redundancies and
lower spending level.

Economic Analysis for pepsico

Last year the U.S. economy was the strong and nearly every part of
it was growing and doing well. However, things changed. Most
economists loosely define a recession as the two consecutive
quarters of contraction, or negative GDP growth. On Monday 26, the
government officially declared that the U.S. has been in recession
since March.

However, because of the aggressive action by the Federal Reserve


and the Congress it will be short and mild. The economy will return
to the sustained, positive growth in the first half of 2002.

Future Outlooks

 The Federal Reserve is doing all that it can help the economy
to recover. They have cut the interest rate ten times in this
year. The rate now lies at a 40-year low of 2.1%. Lowering the
interest rates will ultimately excite consumer demand in the
economy. Companies will expand and increase use of debt as
a result of the low borrowing rate. Pepsico can borrow money
for investing in some other product as the interest rates are

36
low. It can use the borrowing on the research of new products
or technology. As researching for new products would cost
less the pepsico Company will sell its products for less and the
people will spend as they would get cheap products from the
pepsico.

 Before the attacks on September 11, 2001, the US was


starting to see the economy recover slightly and it is only just
recently that they achieved economic levels. Consumers are
now the resuming their normal habits, going to the malls, car
shopping, and eating out at restaurant. However, many are
still handling their money cautiously. They believe that with
the lower inflation still to come, consumers will recover their
confidence over the next year.

 The non-alcoholic beverage industry has high sales in


countries outside the U.S. According to the Standard and
Poor's Industry surveys,"For major soft drink companies, there
has been the economic improvement in the many major
international markets, such as Japan, Brazil, and Germany."
These markets will be continue to play a major role in the
success and the stable growth for a majority of the non-
alcoholic beverage industry.

S: Social change involves changing attitudes and the lifestyles.


The increasing number of women going out to work, for example,
led to the need for the time-saving products for the home.

Social Analysis for pepsico

 Many U.S. citizens are practicing healthier the lifestyles. This


has affected the non-alcoholic beverage industry in that many

37
are switching to the bottled water and diet colas instead of
beer and other alcoholic beverages. Also, time management
has increased and is at the approximately 43% of all
households. The need for the bottled water and other more
convenient and healthy products are in important in the
average day-to-day life.

 Consumers from the ages of 37yr-55yr are also increasingly


concerned with the nutrition. There is a large population of the
age range known as the baby boomers. Since many are the
reaching an older age in life they are becoming more
concerned with the increasing their longevity. This will
continue to affect the non-alcoholic beverage industry by
increasing demand overall and in the healthier beverages.

T: Technological change - creates opportunities for new products


and the product improvements and of course new marketing
techniques- the Internet.

Technological Analysis for pepsico

Some factors that cause company's actual results to differ the


materially from the expected results are as follows:

 The effectiveness of the company's advertising, marketing


and promotional programs. The new technology of the
internet and television which use special effects for
advertising through media. They make some products look
attractive. This helps in the selling of the products. This
advertising makes the product attractive. This technology is
being used in the media to sell their products.

 Introduction of cans and plastic bottles have increased the


sales for pepsico as these are easier to carry and you can bin

38
them once they are used.

 As the technology is getting advanced there has been


introduction of the new machineries all the time. Due to
introduction of this machineries the production of pepsico
company has increased tremendously then it was few years
ago

 CCE has six factories in Britain which use the most stat-of
the-art drinks technology to ensure the top product quality
and speedy delivery. Europe's largest soft drinks factory was
opened by the CCE in Wakefield, Yorkshire in 1990. The
Wakefield factory has the technology to produce cans of the
pepsico faster than bullets from a machine gun.

Distribution Channel and strategies

“Marketing channels are sets of interdependent organizations


involved in the process of making a product or service available for
use or consumption”

Distribution (Place) Strategies

Product availability where and when customers want them.

Involves all activities from raw materials to finished products

Basic Channels of Distribution

39
Place
Manufacturers/products

Agents/brokers

Wholesalers/distributors

Retailers Retailers

Consumers and organizational end users

Distribution Objective

• Minimize total distribution costs for a given service output

• Determine the target segments and the best channels for


each segment

• Objectives may vary with product characteristics

e.g. perishables, bulky products, non-standard items, products


requiring installation & maintenance

DISTRIBUTION CHANNELS (Pepsi)

There are two marketing channels that involve in the transfer of


product from the producer to the consumer. The intermediaries
involved in the transfer are distributors and retailers.

DISTRIBUTORS:

Distributors are appointed agents of the company who make orders

40
to the company by paying in advance through drafts, stock the
products in their godowns and supply them to outlets through their
fleet of delivery was and a team of salesmen and drivers. They are
allowed to sell to company's product to the retailers in a specified
area. The company divides this area into routes. Each route is
covered by one unit i.e. one de livery van, one salesman one driver,
one helper etc. These units and godown are their main investment.
Distributors have to invest in empty bottles and crates too, so t hat
they can maintain a specified quantity of reserve stock and facilitate
the quick ratation of glass crates.

The company evaluates its distributors at the end of the year


and makes plans for the next year. Company fixes the targets for
each distributor according to market size, last year’s sales, potential
growth assumption based on deposit of empties and installation of
coolers at outlets. Distributors are awarded with a fair margin of RS.
10 per crate for their service. This margin could be increased for the
sale above the targets, company offers are met with distributors
before appointing them. Distributor complying with many schemes
and contests for its customers for pushing different brands and
giving various services. Company also offers many gifts like,
briefcase, and handbags. T-shirts, caps etc.to encourage the
distributors. If distributor does not agree with the conditions of
these agreement company may reduce the area of distributor or
may even terminate the relationship.

RETAILERS:

The sale of particular soft drinks depends a lot entirely on retailer’s


wish. Like if he does not keep Aquafina and if his shop is at the

41
prime location then certainly the customer with turn towards other
cola drinks like Bisleri, Bailley ,Kinley etc. This all goes to prove that
retailer is king. So retailers require special focus from the company.
Pepsi Co. helps the retailers to serve its customer better by
providing good margin to them for storing its product using
merchandising to improve in-store product display, installing cooling
equipment in outlets to make the product ready to drink and
offering different promotion schemes to them time to time to push
different brands, Pepsi Co. Provides a fair margin of RS. 24 per crate
to the retailers.

CUSTOMER SERVICE DEPARTMENT

Customer Service is a support function to sales and marketing


Department and is concerned with effectively dealing with all
customer complaints

This starts from: Ensuring Receipt, Documentation and Follow Up of


all complaints to be take care of within a specified time in order to
achieve the ensure Customer (retailer) distributor and consumer
Satisfaction. The Customer complains directly through phone or
pager or through the sales team visiting them.

Types of Complaints handled are related to:

• Consumer

• Signage and Schemes

• Supply and Service

• Quality of Product

• Cooling Equipment

42
MARKETING DEPARTMENT

Marketing department is mainly concerned with promoting "TOM"


i.e.” Top of the Mind Awareness for Pepsi as it is a consumer
oriented organization. It performs the following functions to build
consumer and customer preference.

Signage: This includes putting up of glow gings, banners, wall


paintings, hoardings, kiosks etc.

Promotions: This includes ad campaigns, sales promotions, new


packages and brand launches. Events this includes sponsoring
events at national, state, district and city level e.g. sports
tournaments, rock shows Musical Nights, Dance competitions,
School and college annual festivals etc.

All these activities are carried out by the unit office with the help of
guidelines issued by the BU in the form of an annual marketing
calendar and budget.

43
ADVERTISING & PUBLICITY

Pepsi Co. is one of the biggest and spenders in India. It is also one of
the biggest global ad spenders. It has long a list of endorsers from
pop star Ricky martin to file stars Shahrukh Khan, Amitabh Bacchan
etc. & Cricket stars Sachin Tendulkar, V.V.S Laxman, Harbhajan
Singh etc. Hindustan Thompsom Associates, the big gets advertising
agency of India has the account of Pepsi Co. is known for its board
cast advertising but it also spends a lot in non board cast
advertising i.e. hoarding, banners, posters stickers, specialties,
hangar,dealer board, glow signboards, wall painting and news
paper. The expenses on these type of advertising are made at
territory or unit level. LUCKNOW territory has assigned two local
advertising agencies R.D. Associates and Krishna for its territorial
advertising.

44
PEPSI VS COKE/ RIVALRY WITH COKE

Pepsi ads often focused on celebrities, choosing Pepsi over Coke,


supporting Pepsi's positioning as "The Choice of a New
Generation." In 1975, Pepsi began showing people doing taste
tests called Pepsi Challenge in which they preferred one product
over the other, and then they began hiring more popular
spokespersons to promote their products.

45
Coke dispenser flown aboard the Space Shuttle Endeavour in
1996.In the late 1990s, Pepsi launched its most successful long-
term strategy of the Cola Wars, i.e. Pepsi Stuff. Consumers were
invited to "Drink Pepsi, collect Pepsi Points on billions of
packages. They could redeem the points for free Pepsi lifestyle
merchandise.

After researching and testing the program for over two years to
ensure that it resonated with consumers, Pepsi launched Pepsi
Stuff, which was an instant success. Tens of millions of consumers
participated. Pepsi outperformed Coke during the summer of the
Atlanta Olympics - - where Coke was a lead sponsor of the
Games. Due to its success, the program was expanded to include
Mountain Dew. The company continued to run the program for
many years, continually innovating with new features each year.

In 1985, Coca-Cola and Pepsi were launched into space aboard


the Space Shuttle Challenger on STS-51-F. The companies had
designed special cans (officially the Carbonated Beverage
Dispenser Evaluation payload or CBDE) to test packaging and
dispensing techniques for use in zero G conditions. The
experiment was classified a failure by the shuttle crew, primarily
due to the lack of both refrigeration and gravity. A Coca-Cola
fountain dispenser (officially a Fluids Generic Bio processing
Apparatus-2 or FGBA-2) was developed for use on the Space
Shuttle Endeavour as a "a test bed to determine if carbonated
beverages can be produced from separately stored carbon
dioxide, water and flavored syrups and determine if the resulting
fluids can be made available for consumption without bubble
nucleation and resulting foam formation". The unit flew in 1996
aboard STS-77 and held 1.65 liters each of Coca-Cola and Diet
Coke.

46
TECHNIQUES FOR SALES PROMOTION
1.) Product availability
It means all the flavors of Pepsi should be available at one time.
By which customer can able to give any flavor to the consumer
and can give the satisfaction.

2.) 100% rich - It means that Company’s top management should


always worry about the quality of all the brands. If any organization
wants to service in the market and wants to better its image then
quality play a very integral role so for sales promotion quality
should be 100% and good.

3.) Good relation – Company’s executive, sales man should make


good relation from dealer, whole seller and retailer. There is only
20% brand loyal person. Remaining 80% impulse selling is going
on. It means in India in cold drinks line which ever brand consumer
see first of all that brand is demanded by user.

4.) Proper signage- Proper shin age also play a key roll in more
selling.

5.) Fulfill the commitment– if executive promise to the customer


of any type. Then executive shovel fulfill his promise, such as.

47
Executive say that to the retailer if you will sell 1000 carrot in this
month then I will give you a coke fridge. If retailer has sold out
1000 carrot in the month then executive should fulfill his
commitment. By this manner selling will also improve.

SCHEME AS AN EXAMPLE OF SALES PROMOTION

1. 2 bottle 200ml free on 300ml/ Pepsi, Dew, 7up Mirinda


2. 2 bottle 600ml free on 2000ml/ Pepsi, Dew, 7up Mirinda
3. 2 bottle 500ml free on 500ml Lehar soda

PRODUCT PER CARTOON FLAVORS MARKET POSITION PRICE


OFFER

PEPSI 9 Bottles Carbonated Good


459/Carrot 2 600ml/Carrot

COKE 9 Bottles Carbonated Good


452/Carrot No offer

48
CHAPTER 5
RESEARCH MEHODOLOGY

1. RESEARCH DESIGN

TYPE OF RESEARCH: Explorative research


The research used is explorative research since I am exploring the area by getting into
the topic and finding the problems.
The problem is known but the reason behind that is still hidden that is why
explorative research is needed.
It is qualitative research since I am gathering through that research is first hand
qualitative data and is very important.

REASEACH OBJECTIVE:
1.To determine the market share of PepsiCo in SAKET (south Delhi).

2.To find the taste and preferences of consumer by means of sales volume of various
retailers.

3. To determine the company image in the market by finding how frequently


company solves the problems of retailers, how is the availability of material into the
market.

4. Various other problems retailers are facing.

5. To find out any loop holes in system

SAMPLE DESIGN:
(i) Sample unit: 1 retailer whether it is a eatery, grocery, covino & trolley is
considered as one entity and would be considered as a 1 sample unit.

49
(ii) Sample size: sample size is large it would consist of 46 retailers. It contains
small and big retailers owners.

(iii) Sampling technique: sampling technique here used is non-probability simple


random sampling. We considered it as area sampling since the research is focus onto a
particular area.

(iv) Sampling area: the research given to me is SAKET


that is in south Delhi which consist of three markets that is pvr saket ,select city saket
and j block market.

2. DATA COLLECTION:

Data sources:
1.) Primary data:
Interview method: The first hand data is collected by doing personally
interviewing the retailers of saket and data is record in the foam of questioner. I filled
the alternatives in the question personally.

Observation method: some data is recorded by observing the items displayed


in the shop by during visit.

2.) Secondary data:


Internal data: some secondary data is also gathered in order to get finding from
the research this consist of data taken from organization internally.

External data: The remaining secondary data is taken from company website
and some other website.

Tools:
Various statics tools like pie chart, line chart, bar charts are used to represent the
data available in tabulated foam and then its interpretation will be done.
A questionnaire is being prepare for data collection.

50
PURPOSE

DETAILS OF THE SURVEY

As per the topic of report is concern that is “developing model


market for PepsiCo” I conducted a market research study about
retailer satisfaction to find out what problems retailer are facing
from day to day in terms of demand and supply and also to find the
effectiveness of various promotional strategies followed by PepsiCo
into the market.

Instead of sales my work is to look at the exposure part of market in


terms of visi purity, brand loyalty, advertising through various types
as through providing the retailer signboard.

The work is confined up to the particular market assigned to me


that is SAKET. Work is done through root riding, visiting the shops
personally and by talking to the retailer and asking which brand he
is selling more and did he face any problem related to supply of
material in right quantity at right time.

The task is going around ensuring the purity and charging of Pepsi
visi kept in the shop. Ensuring that the customer never returned
back with an negative compliment due any reason weather it is not
availability of particular brand of Pepsi of his choice or he /she may
not get chilled cold soft drink.

51
Our work is to find out the problem and shot the problem by making
it aware to higher authorities’ and make sure that the work is done
by constantly reminding them about the problems. Our work is to
increase the exposure into the market getting customer attracted
getting insight of customer by talking to them and to increase the
brand loyalty among the retailer already selling Pepsi and getting
new retailer.

LIST OF OUTLETS

1.CISF CANTEEN

2.MADAN GENERAL STORE

3. BANARSI PAN BHANDAR

4. PAPPU PAN

5. DELHI FRUITS

6. DURGA PAN

7. CHAURASIA PAN BHANDAR

8. PRAKASH PAN

9. SHRAVAN PAN

10. PRINCE PAN

11. PAWAN PAN

12. RAJKUMAR PAN

13. SHUKLA PAN PLACE

52
14. JAIN PAN

15. HARIOM PAN

16. KATHI KABAB RESTAURANT

17. HARIOM PAN

18. FUN & FROLIC

19. MAHESH PAN

20. SKG PAN

21. VIKAS PAN

22. TIWARI KING PAN

23. CELEBRATIONS

24. AGGARWAL SWEETS


25. SAKET CLUB

26. RACHNA GENERAL STORE

27. SWEET CENTRE

28. BIG BANANA RESTAURANT

29. BIKANER MISHTHAN

30. FRIENDS TELECOM

31. MADHUBAN DINING

32. RK TEA

33. SAKET SPORTS CENTRE

34. RANDHIR PAN

35. PRIYANKA GENERAL STORE

36. HOTEL PALMGREENS

37. MIRCH MASALA

38. AMITY INTERNATIONAL SCHOOL

39. GM MODI HOSPITAL

40. VERMA STORE

41. DURGA PAN

42. ESSENTIALZ

53
43. JKM STORE

44. ANAND MORNING STORE

45. SATTVIK

46. PUNJAB GRILL RESTAURANT

DATA ANALYSIS

QUESTION-1: WHICH COMPANY BEVEREGES YOU SELL?

PEPSI 22

COKE 12

BOTH 10

OTHERS 2

5.1

54
G1 MARKET SHARE

PEPSI 21

COKE 13

BOTH 8

OTHERS 4

TOTAL RETAILERS 46

INTERPRETATION:-

According to research conducted pepsico hold 48% of


market exclusively,21% in share with coke and market
share of coke is 26%. 4% market is captured by other
soft drink companies like ‘rc cola’ , ‘banta’ etc.

QUESTION- 2: WHICH COMPANY VISI YOU HAVE?


5.2

55
G2 VISI AVAILABILITY

INTERPRETATION: -

According to research conducted 45% retailers have pepsico’s visi, 28%


ve coke’s visi, 17% ve got both coke & pepsico’s visi and lastly 8% of
retailers ve their own visi.
# From above interpretation its very much clear that pepsico is selling its
beverages even in coke’s visi & this is termed as ‘RED TAPISM’.
QUESTION 3. WHICH BRAND OF PEPSICO YOU SELL MORE?

PEPSI 12

SLICE 9

DEW 5

7UP 4

MIRINDA 2

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5.3

G3 MAXIMUM SELLING BRAND

# Pepsi is the highest selling brand of pepsico. Following are slice,dew,7up,mirinda


etc.

QUESTION- 4: IN HOW MANY DAYS DOES PEPSICO SORT OUT YOUR


PROBLEMS?

1 DAY 2

2 DAYS 11

3 DAYS 14

MORE THEN A WEEK 5

5.4

57
G4 PROBLEM SOLVING TIME

# Study done on ‘time taken for fixation of problem’ reveals that pepsico take lot of
time in solving retails problems.
Though most of the retailers are taken care within 2 – 3 days but some retailer face
problem in fixing up of their problems.

QUESTION 5: WHAT DO YOU THINK ABOUT THE SERVICE SUPPLY OF


PEPSICO AT YOUR OUTLET?

VERY GOOD 5

GOOD 9

NORMAL 12

BAD 4

VERY BAD 2

5.5

58
G5 SERVICE SUPPLY

INTERPRETATION:
Most of the retailers are satisfied with supply of beverages. Around 18%
are not satisfied with supply.
These retailers want supply at or before 10:AM so that beverages can be
cooled up early in the morning.
QUESTION 6: HOW MANY TIMES IN A WEEK YOU FACE THE
SHORTAGE OF POPULAR BRAND OF PEPSICO?

1 TIME 11

2 TIMES 14

3 TIMES 5

MORE THEN 3 TIMES 2

5.6

59
G6 SHORTAGE OF POPULAR BRANDS

INTERPRETATION:
Retailers do face shortage of popular drinks sometimes.
PEPSI,DEW,SLICE & NIMBOOZ are some brands which retailers mostly
ask for.
In summers retailers generally face this problem because of heavy
demand. So authorites must pay attention for proper supply of beverages.

QUESTION 7. WHICH TYPE OF SCHEME PROVIDED BY PEPSICO


ATTRACTS YOU MOST?

DAILY SCHEME ON BRANDS 14

MONOPOLY SCHEME 3

MONTHLY CARD SCHEME 10

DISPLAY SCHEME 5

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5.7

G7 DIFFERENT SCHEMES

INTERPRETATION:
In the study it is found that 3 respondents said they sell PepsiCo
Brands becauseey get monopoly discount. Display schemes and monthly
card is for every one also the daily scheme is for everyone. The major
difference is created by monopoly discount.

QUESTION 8. DOES ADVERTISEMENT OF PEPSICO AFFECTS YOUR


SELL?

YES 24

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NO 8

5.8

G8 AFFECT OF ADVERTISMENT

INTERPRETATION:
According to my study around 75% of retailers said that advertisments of
pepsico affects their sell.

Over All Findings of the Survey

1. There is good hold of PepsiCo in SAKET region.

2. Maximum selling brand is PepsiCo, dew and slice.

3. People who eat non-vegetarian food like Pepsi and dew.

4. Every retailer want supply to be delivered in early morning( before 10am) so that
bottles can be cooled up soon.

62
5. Some of the retailers also complained about visi cooler. Cooling problems are
mentioned by retailers.
6. Majority of retailers ask about Boards, Openers & Counters.

7. Delay in replacement of burst bottles.

8. At some places Pepsi’s signages are still hanging despite of no transactions with
those outlets.

9. The retailer should be given same preference either it is the small shop or the big
one.

10. Big retailers also ask for credit most of the times.

CONCLUSON

1.) During timely interaction with retailers i found out that they are not happy with
time at which they will get supply.
Material should be reach at right place in right quantity at right time.
My suggestion is that truck should reach 2 hours before the time at which it came that
is 11 am.

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2.) Company does not respond to the problems of retailers at time. Most of the visi
into are not cooling properly. Sometimes the customer return empty handing
because he or she not get chilled cold drink.

3. Some small retailers who have potential of selling some 2 to 3 carrots of cold
drink demand material on credit on daily basis. Customer executive of the
market should pay emphasis on them.

4. There is tough competition between retailers basically eatery shops. All of them
wanted material on same time.
My suggestion is that there is need of pre sales representative in that area or there
should be 3 helpers with the truck.

5. Most of the time the change in scheme does not reach up to retailer due to illegal
nature of truck driver. The authorities should concentrate towards this.

6. There is no visit of official in that area. There is no one to negotiate and listen to
the problems of retailers.

7. Most of the visi coolers in market are less then 75% pure.

8. Saket being posh locality pet bottles are sold more here, so the truck should carry
more pet bottles

SUGGESTIONS

• Pepsico can launch some health drinks like milk products. During
interaction with customers & retailers I found out that educated people
prefer health drinks like lassi, chaah, coffee, flavored milk, coconut water,
ice tea over soft drinks.

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• Pepsico should focus more on its advertising strategies. Coke, Pepsico’s
biggest competitor target its ads on whole family by showing whole family
in ads, also coke tries to connect emotionally with consumers by using
words like “khushian”. On the other hand pepsi’s ads are only targeted on
youth & young generation(youngistan) of India. So pepsico should also
focus on its advertising strategies.

• Pepsico should launch products against thumbs up & limca of Coke.


Thumbs up & Limca are two product of coke which Pepsi is not able to
compete with.

LIMITATIONS OF STUDY

1. In most of the shops we didn’t find the actual owner of the shop.
2. There is time bound.
3. Outlets that sale coke and some other retailer also are not willing to talk or

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respond so certain data filled here is through observation.
4. During interaction with retailers we cannot ask them direct question.
5. Work bound most of the time we have to do organization related work.

BIBLIOGRAPHY:

1. Malhotra, Naresh K. Marketing research and applied orientation, (2010),


Prentice Hall, New Delhi, Vol.5, pp.613-623, pp.468.

2. Kotler, Philip and Armstrong, Gary, Principles of marketing, Pearson Publication.

3. Robbins, Stephen P. Organizational Behavior, (2006), Pearson Publication.

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Website:
1. http://www.scribd.com/doc/21528450/Pepsico-Final-Ppt

2. http://www.scribd.com/doc/21528551/SURVEY-OF-VISI-PURITY-
CHARGING

3. www.rjcorp.in

4. www.pepsiindia.com

5. www.pepsizone.com

6. http://www.ics.purdue.edu/~pbawa/421/pepsi%20cola%20pest%20case
%20study.htm

ANNEXURE

QUESTIONARE

OUTLET NAME:

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OUTLET TYPE:
OWNERS NAME:
MARKET NAME:

1.Which company beverages you sell?


(a) PepsiCo (b) coca-cola (c) both (d) others

2.Which brand of PepsiCo you sell more?


(a) Pepsi (b) slice (c) dew (d) 7 up
(e) Mirinda

3.Which company visi you have?


(a) PepsiCo (b) coca-cola (c) both (d) others

4.What is the impact of location of visi cooler on your


sale?
Ans…………………………………………………

5.In how many days PepsiCo sort out your problems?


(a) 1 day (b) 2day (c) 3 day
(d) more than a week

6.What do you think about the service supply of


beverages at your outlet?
(a) Very good (b) good (c) normal (d) bad
(e) very bad

7. How many times you face the shortage of popular


brand of PepsiCo at your outlet in a week?

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(a) 1time (b) 2times (c) 3 times (d) more than 3 times

8. Which type of scheme provided by PepsiCo attract


you?
(a) Daily Scheme on brands
(b) Monopoly discount
(c) Monthly card scheme
(d) Display schemes

9.How is the behavior of PepsiCo official?


(a) Very good (b) good (c) normal (d) bad
(e) very bad

10.Did advertisement of PepsiCo affect your sell?


(a) Yes (b) No

11. What sort of others problems you are having?

Ans. ……………………………………………

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