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1
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/ 73
Sections
SectionsSection 1 of 63
1.1 Introductionp. 1
1.2.1 Carbonated beveragesp. 3
1.2.2 Overview of the industryp. 4
1.2.3 Soft drinksp. 5
1.2.4 Statistical Growth Ratesp. 7
1.2.6 Market Segmentationp. 8
1.2.7.2 Percentage growth of various Non-Cola drink productsp. 10
1.3.2 Historyp. 12
1.3.3 PepsiCo Headquartersp. 13
1.3.4 PepsiCo India Holdings Ltdp. 13
1.3.5 Pepsi in Indiap. 13
1.3.6 Various functional departments 1. Production Departmentp. 18
1.3.7 ORGANISATION STRUCTUREp. 20
1.3.8 Ingredientsp. 21
1.3.9 Nutrientsp. 21
1.3.10 Competitorsp. 22
1.3.11 Product wise comparison of Pepsi with competitor Coca-Colap. 22
2.1 Special conceptsp. 23
2.2 Literature Reviewp. 24
3.1 Scope of the studyp. 26
3.2 Need for the studyp. 26
3.3 Objectives of the studyp. 26
3.4 Sample designp. 27
3.5 Sources of Data Collectionp. 27
3.6 Area of the studyp. 27
3.7 Tools used for Analysisp. 27
3.8 Period of the studyp. 28
3.9 Limitations of the studyp. 28
4.1 Introductionp. 29
4.2 Age group of Consumersp. 29
4.3 Gender of the Consumersp. 30
4.4 Salary of the consumersp. 31
4.5 Education of the consumersp. 32
4.6 Occupation of the consumersp. 33
4.7 Likeliness of Soft drinksp. 34
4.8 Factors induces the consumer to buy Soft Drinksp. 34
4.9 Soft drinks really give the consumers a liftp. 35
4.10 Type of refreshment which experienced by the consumersp. 36
4.11 Quantity of soft drinks consumed regularly by the consumersp. 37
4.12 Favourite soft drink of consumersp. 38
4.13 Mostly consuming product in Pepsip. 39
4.14 Preference of Brandp. 40
4.15 Various occasions soft drinks are frequently usedp. 41
4.16 Consumption of soft drinks is more than water per dayp. 43
4.17 Unit of soft drinks which consumed per dayp. 44
4.19 Advertisement induces the consumers to purchase the soft drinksp. 44
4.20 Type of advertisement induces you to purchase soft drinksp. 45
4.21 Word of mouth induces neighbours or friends or relatives to buy Pepsip. 46
4.22 Satisfaction level of consumersp. 47
4.23 Expected changes in Pepsi by consumersp. 48
4.24 Soft drink is healthy or notp. 49
4.25 Consumer’s preferable drink other than Soft drinks and waterp. 51
4.27 Consumers give more value to which type of juicesp. 52
4.28 Various occasions fresh juices are frequently usedp. 53
4.29 Frequency of Pepsi in shop with other productsp. 53
4.30 Consumer can get their preferred quantity instantlyp. 54
4.31 Attractive package enhancing the consumer to buy Pepsip. 55
4.32 Comparison of soft drinks with fresh juicesp. 56
4.33 WEIGHTED AVERAGE METHODp. 57
5.1 Findingsp. 66
5.2 Suggestionsp. 71
5.3 Conclusionp. 72
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CHAPTER-I
INTRODUCTION
1.1 Introduction
Soft drink consumption has become a highly visible and controversial public health and
public policy issue. Soft drinks are viewed by many as a major contributor to obesity and
related health problems and have consequently been targeted as a means to help curtail
the rising prevalence of obesity, particularly among children. Soft drinks have been
banned from schools in Britain and France, and in the United States, school systems as
large as those in Los Angeles, Philadelphia, and Miami have banned or severely limited
soft drink sales. Many US states have considered statewide bans or limits on soft drink
sales in schools, with California passing such legislation in 2005. A key question is
whether actions taken to decrease soft drink consumption are warranted given the
available science and whether decreasing population consumption of soft drinks would
benefit public health. The issue is not new.
In 1998, the Center for Science in the Public Interest published a report entitled Liquid
Candy: How Soft Drinks are Harming Americans' Health. The report examined statistics
relating to the soaring consumption of soft drinks, particularly by children, and the
consequent health ramifications including tooth decay, nutritional depletion, obesity,
diabetes, and heart disease. It also reviewed soft drink marketing and made various
recommendations aimed at reducing soft drink consumption. These beverages lead to
energy over consumption; whether they displace other foods and beverages and, hence,
nutrients; whether they contribute to diseases such as obesity and diabetes; and whether
soft drink marketing practices represent commercial exploitation of children.
Similar positions have been taken by other trade associations such as the British Soft
Drinks Association and the Australian Beverages Council. Legislative and legal
discussions focusing on soft drinks sales often take place on political and philosophical
grounds with scant attention to existing to existing science.
1
Our objectives were to review the available science, examine
studies that involved the use of a variety of methods, and address whether soft drink
consumption is associated with
Increased energy intake,
Increased body weight,
Displacement of nutrients,
Increased risk of chronic diseases.
Health Effects:
The consumption of sugar-sweetened soft drinks is associated with
Obesity,
Diabetes,
Dental cavities,
Low nutrient levels.
Experimental studies tend to support a causal role for sugar-sweetened soft drinks
in these ailments, though this is challenged by other researchers.
Many soft drinks contain ingredients that are themselves sources of concern: caffeine is
linked to anxiety and sleep disruption when consumed in excess, and the health effects of
high-fructose corn syrup and artificial sweeteners remain controversial. Sodium benzoate
has been investigated as a possible cause of DNA damage and hyperactivity. Other
substances have negative health effects, but are present in such small quantities that they
are unlikely to pose any substantial health risk. Benzene belongs to this category: the
amount of benzene in soft drinks is small enough that it is unlikely to pose a health risk.
1.2 Industry Profile
2
A soft drink is a beverage, often carbonated, that does not contain alcohol. Carbonated
soft drinks are more commonly known as soda, pop, tonic, or soda pop in parts of the
United States and Canada, or fizzy drinks in the U.K.; sometimes called minerals in
Ireland.
A soft drink is a non-alcoholic beverage. It is artificially flavored and contains no fruit or
pulp. India with population of more than 100 crores is potentially one of the largest
consumers markets in the world after China. The consumer market can be defined as the
market for products and services that are purchased by individuals as households goods
for their personal consumption. Soft drink is a typical consumer product purchased by
individuals to quench thirst and secondly for refreshment. Searching for the point of
Indian soft drinks we first document on Gold Spot, this was the first brand soft drink in
India.
1.2.1 Carbonated beverages
In late 18th Century, scientists made important progress in replicating naturally
carbonated mineral waters. In 1767 Englishman Joseph Priestley first discovered a
method of infusing water with carbon dioxide to make Carbonated water. When he
suspended a bowl of distilled water above a beer vat at a local brewery in Leeds,
England. His invention of Carbonated water, is the major and defining component of
most soft drinks. Priestley found water thus treated had a pleasant taste and he offered it
to friends as a refreshing drink. In 1772 Priestley published a paper entitled Impregnating
Water with Fixed Air in which he describes dripping oil of vitriol onto chalk to produce
carbon dioxide gas, and encouraging the gas to dissolve into an agitated bowl of water
Another Englishman, John Mervin Nooth, improved Priestley’s design and sold his
apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented
a generating apparatus that made Soft drink carbonated water from chalk by the use of
sulfuric acid.
3
Bergman’s apparatus allowed imitation mineral water to be produced in large
amounts. Swedish chemist Jöns Jacob Berzelius started to add flavors (spices, juices and
wine) to carbonated water in the late 18th century.
1.2.2 Overview of the industry
The beverage market is worth $55 billion worldwide. The tides are turning for many
beverage categories. While the carbonated soft drink and beer categories are merely
treading water with flat sales, the energy drink category is surging ahead like never
before. Bottled water, ready-to drink coffee, ready-to-drink tea and sports drinks follow
close behind with substantial sales increase- drinks without added sugar, no beer, along
with developments in juice drinks and dairy-based drinks, are helping to turn around sales
in these categories. What follows is a category-by-category look at the state of the
beverage industry, including the top brands, new products, innovations and future
trendsetters.
In order to be successful in the marketplace, one has to think in terms of health
innovation, flavor innovation, ingredient innovation and specific age groups. These are
the factors that will shape the future of the beverage industry.
“Today’s consumers are concerned with overall health and wellness. As a result, there is
significant impact on food and beverage purchases. Many studies have shown that
consumers are as concerned with good health as they are about maintaining a high quality
of life.”
“The soft drink industry is training people to seek out new products, even the big guys
are coming out with limited-edition flavors, and consumers are beginning to see that there
is more flavor activity going on in the category. Whether that really nets anybody any
sales gains is another thing, but it is teaching consumers to seek out and try new products.
It’s also trying to create some excitement there.”
In spite of several challenges and restrictions faced by this industry, it is a ‘roll’ like
never before. Customer preferences may have shifted, but they are still always on the
look out for a can of ‘coke’ or a new ‘flavored’ drink to quench their thirst.
4
1.2.3 Soft drinks
Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with
Pepsi and Coca-cola dominating the market. The entire part of the drink is based on its
artificial flavors and sweetening agents as no natural juice is used.
a) Soft Drink Industry at Global Level
The earliest soft drinks weresherbets developed by Arabic chemists and originally served
in the medieval Near East. These were juiced soft drinks made of crushed fruit, herbs, or
flowers. From around 1265, a popular drink known asD andelion
& Burdock appeared in England, made from fermented dandelion (Taraxacum officinale)
and burdock (Arctium lappa) roots, and is naturally carbonated. The drink (similar to
sarsaparilla) is still available today, but is made with flavorings and carbonated water,
since thes afrole in the original recipe was found to becarcinogeni c.
The first marketed soft drinks (non-carbonated) in the Western world appeared in the
17th century. They were made from water and lemon juice sweetened with honey. In
1676, the Compagnie des Limonadiers of Paris was granted a monopoly for the sale of
lemonade soft drinks. Vendors carried tanks of lemonade on their backs and dispensed
cups of the soft drink to thirsty Parisians.
In the United States, soft drinks are sold in 3,2, 1.5, 1 liter, 500 ml, 8,
12, 20 and 24 U.S. fluid ounce plastic bottles, 12 U.S. fluid ouncecans, and short eight-
ounce cans. Some Coca-Cola products can be purchased in 8 and 12 U.S. fluid ounce
glass bottles. Jones Soda and Orange Crush are sold in 16 U.S. fluid ounce (1 U.S. pint)
glass bottles. Cans are packaged in a variety of quantities such as six packs, 12 packs and
cases of 24, 36 and 360. With the advent of energy drinks sold in eight-ounce cans in the
US, some soft drinks are now sold in similarly sized cans. It is also common for
carbonated soft drinks to be served as fountain drinks in which carbonation is added to a
concentrate immediately prior to serving.
5
InEurope, soft drinks are typically sold in 2, 1.5, 1 litre, 330 ml plastic
or 500 ml glass bottles; aluminums cans are traditionally sized in 330 ml, although 250
ml slim cans have become popular since the introduction of canned energy drinks and
355 ml variants of the slim cans have been introduced by Red Bull more recently. Cans
and bottles often come in packs of six or four. Several countries have standardrecyclable
packaging with a container deposit, typically ranging from€ 0.15 to 0.25. The bottles are
smelted, or cleaned and refilled; cans are crushed and sold as scrap aluminium.
InAu s tralia, soft drinks are usually sold in 375 ml cans or glass or plastic
bottles. Bottles are usually 390 ml, 600 ml, 1.25 or 2 litres. However, 1.5 litres bottles
have more recently been used by the Coca-Cola Company. South Australia is the only
state to offer a container recycling scheme, recently having lifted the deposit from 5 cents
to 10 cents. This scheme is also done in thePhilippines; people usually buy glass bottles
and return them in exchange for a small amount of money.
In Canada, soft drinks are sold in cans of 236 ml, 355 ml, 473 ml, and
bottles of 591 ml, 710 ml, 1 l, 1.89 l, and 2 l. The odd sizes are due to being themetric
near-equivalents to 8, 12, 16, 20, 24 and 64 U.S. fluid ounces. This allows bottlers to use
the same-sized containers as in the U.S. market. This is an example of awider
phenomenon in North America. Brands of more international soft drinks such as Fanta
and Red Bull are more likely to come in round-figure capacities.
b) Soft Drinks in India
In India, soft drinks are available in 200 ml and 300 ml glass bottles, 250 ml
and 330 ml cans, and 600 ml, 1.25 l, 1.5 l and 2 l plastic bottles. The multinationals
Coca-Cola India and PepsiCo India Holdings saw their off-trade value shares of soft
6

drinks in India decline over the review period, as other national and regional players
updated their brand portfolios and increased the penetration of their brands in India.
Bottled water players, such as Parle Bisleri and Dhariwal Industries, were particularly
successful in expanding their consumer base through a concerted effort to increase their
manufacturing capacity and move to newer regions within India. Dabur India and Parle
Agro benefited from their first mover advantage in being present in high-growth
emerging product categories, such as 100per cent juice and other non-cola carbonates.
Rising temperatures across the sub continent promises a hotter Indian summer than the
last, boosting sales of beverages and ice-cream and making sugar costly. Most parts of
the country recorded temperature 2-4 degrees Celsius above normal in the last 1- 1/2
months, and in certain places it exceeded 40 degrees C.
c) Market size and growth
•
Cola products account for nearly 61-62 per cent of the total soft drinks
market.
•
Two global majors’ Pepsi and coke dominate the soft drink market.
•
The market is worth around Rs.5000 crores with growth rate of around
10-15 per cent.
•
The production as soft drinks has increased from 5670 million bottles
in 1998-99 to 6230 million bottles in 1999-2000 industry sources.
•
Growth market this year is expected to be 10-15per cent in value terms
and 20-22per cent in volume terms.
•
However, the market for carbonated drinks is stagnating and not
growing as expected.
1.2.4 Statistical Growth Rates
Statistical analysis refers to a collection of methods used to process large amounts
of data and report overall trends. Statistical analysis is particularly useful when dealing
7

with noisy data. Statistical analysis provides ways to objectively report on how unusual
an event is based on historical data.
1.2.4.1
Market growths of the Soft Drinks in India
An increase in the demand for a particular product or service over time. Market growth
can be slow if consumers do not adopt a high demand or rapid if consumers find the
product or service useful for the price level.
Table 1.1
Market growths of the Soft Drinks in India
Financial Year
Market growth of soft drinks in Per cent
1990-91 - 1996-97
9
1996-97 - 2001-02
8
2001-02 - 2006-07
6
2004-05 - 2009-10
5
Source: www.mofpi.nic.in
This table shows that the market growth of the soft drinks from 1990-2010 in
India. The growth of soft drinks is not satisfied one because it is decreasing every seven
years. It is because the consumers are aware about the soft drinks.
1.2.6 Market Segmentation
A market segment is a sub-set of a market made up of people or organizations sharing
one or more characteristics that cause them to demand similar product and/or services
based on qualities of those products such as price or function.
1.2.6.1 Percentage growth of the Soft Drinks in various segments as well as in
various areas
Annualized growth rate of revenue expressed as a percentage, used in measuring
the performance of a new firm with little or no record of earnings.
8

Table 1.2
Percentage growth of the Soft Drinks in various segments as well as in various areas
Segment
Share (per cent)
North
24
East
18
West
32
South
26
Rural
30
Urban
70
Source: www.mofpi.nic.in
The above table shows that the Percentage growth of the Soft Drinks in various segments
as well as in various areas. In Urban area consumers percentage is really high when
compared to the rural area. It indicates that the urban people like soft drinks more than
rural people and also in west percentage of share value is increase
1.2.7 Product Variation
Development or incorporation of attributes that a product's intended customers perceive
to be different and desirable. Advertising and promotion of a product is based on its
differentiating characteristics.
1.2.7.1 Percentage growth of various Soft drink products
Annualized growth rate of revenue expressed as a percentage, used in measuring
the performance of a new firm with little or no record of earnings.
a) Cola Drinks:
9
Table 1.3
Percentage growth of various Cola drink products
Company
Share (per cent)
Thums Up
29
Coca Cola
25
Pepsi
18
Fanta
9
Mirinda
8
Limca
9
Overall Colas
62
Source: www.mofpi.nic.in
This table shows that the Percentage growth of various Soft drink products. The share
value of Pepsi is less than Coca cola. This indicates the product variations in India.
b) Non-Cola Drinks
1.2.7.2 Percentage growth of various Non-Cola drink products
Annualized growth rate of revenue expressed as a percentage, used in measuring
the performance of a new firm with little or no record of earnings.
Table 1.4
Percentage growth of various Non-Cola drink products
Company
Share (per cent)
Lemon
10
10

Orange
17
Mango
3
Source: www.mofpi.nic.in
This table shows that the Percentage growth of various Soft drink products. The cola
drinks have more share value than non-cola drinks. This indicates the product variations
in India
1.3 Company Profile
Pepsi International is a world renowned brand. It is a very well organized multinational
company, which operates almost all over the world. They produce, one of best carbonated
drinks in the world. Pepsi is a symbol of hygiene, quality and service, all over the world.
Pepsi is producing Cola for more than 100 years and it has dominated the world market
for a long time. Its head office is in New York. Its CEO is Steve Reinemund and in India
its CEO is Indira Nooyi.
Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is
sold in stores, restaurants and from vending machines. The drink was first made in the
1890s by pharmacist Caleb Brad ham in New Bern, North Carolina in the United States.
On August 28, 1898 , "Brad's drink" was changed to "Pepsi-Cola" and later trademarked
on June 16, 1903 Caleb Brad ham bought the name "Pep Kola" from a local competitor
and changed it to Pepsi-Cola. "Pepsi-Cola" is an anagram for "Episcopal" - a large church
across the street from Brad ham’s drugstore. Caleb Brad ham and his customers simply
thought the name sounded well or the fact that the drink had some kind of "pep" in it
because it was a carbonated drink; they gave it the name "Pepsi". As Pepsi was initially
intended to cure stomach pains, many believe Brad ham coined the name Pepsi from
either the condition dyspepsia (stomach ache or indigestion) or the possible one-time use
of pepsin root as an ingredient (often used to treat upset stomachs). It was made of
carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the original recipe
included the enzyme pepsin is disputed.
11

The brand was trademarked on June 16, 1903.There have been many Pepsi variants
produced over the years., including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max,
Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available
in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw,
Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan. Pepsi cola is
situated is an Industry that is dominator by two Competitors Coca Cola and of course
themselves. Although Pepsi and Coke basically go after all consumers who purchase soft
drink beverage Coca Cola targets it product at the head of household. According to the
beverage digest the customer base for soft drinks is whopping 95per cent of regular user
in United States. This represents the large number if potential customers for Pepsi Cola.
The Pepsi's advertising the campaigns are referring to the markets that marketers refer to
as Generation X. The Generation X consumer is profiled to be between the age of 18 to
29. They have high expectations in life and very active. They adopt a lifestyle of living
for today and not worry about long term goal. They also have a focus on the 12 to 18 year
old market.
1.3.2 History
Pepsi is a world leader in convenient snacks, foods and beverages. Its revenue is
more than 39 billion Dollars and over 185, 000 employees. The company consists of
Pepsi Co Americas Foods (PAF),
Pepsi Co Americas Beverages (PAB) and
Pepsi Co International (PI) Pepsi Co Americas
Foods include all Latin America Food and snacks businesses and all business in Mexico.
Pepsi Co America Beverages includes Pepsi Co Beverages all North America and all
Latin American Beverage Businesses. Pepsi Co International includes in the United
Kingdom, Europe, Africa Middle East and Asia. Pepsi Co Brands are available in 200
Countries .Some of the Pepsi Co Brands names are more than 100 year old but the
corporation is relative young. Pepsi Co was founded in 1965. Pepsi and Coca cola merge
12
with each other and the name of the product is Pepsi Cola. Pepsi Co merged with the
Quaker oats Company in 2001.
1.3.3 PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York, approximately 45
minutes from New York City. The seven-building headquarters complex was designed by
Edward Durrell Stone, one of America's foremost architects. The building occupies 10
acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a
world- acclaimed sculpture collection in a garden setting.
The collection of works is focused on major twentieth century art, and features works by
masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto
Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were
designed by the world famous garden planner, Russell Page, and have been extended by
François Goffinet. The grounds are open to the public, and a visitor's booth is in
operation during the spring and summer.
1.3.4 PepsiCo India Holdings Ltd
PepsiCo is the 18th largest American Company with an annual turnover of US$ 30
billion. PepsiCo has its worldwide operations in 190 countries. The Company employs
over half a million persons in its operations in Beverages and Snack Foods and
Restaurant across the world and is possible the largest employer.
1.3.5 Pepsi in India
PepsiCo has set up a fully integrated operation in India - manufacturing, research and
development, marketing, distribution, covering fruit / vegetable processing, exports,
snack foods and beverages, including franchising of Beverage territories for beverage
business and restaurants.
13
It has set up a holding company to further accelerate growth in future through new
initiatives and joint ventures. PepsiCo started its operations in India in 1989 with the
formation of Pepsi Foods Limited. PepsiCo is fully committed to India and the national
objective of development of technology, and accelerating exports and employment.
Since its entry in 1989, it has brought in over Rs. 1000 Crores in foreign exchange, as
well as technology and know-how and used its global network to develop value-added
local and export businesses. The Company plans to invest Rs. 500 Crores in the next 2-3
years for its operations in India.
All of Pepsi’s businesses are employment intensive. PepsiCo employs over 35000
persons directly and indirectly in its beverage business and other operations. Pepsi and its
franchisees have over 44 Bottling Plants.
New projects have recently come up in West Bengal, Rajasthan, Gujarat, Karnataka,
Maharashtra and Uttar Pradesh. A project is coming up in Kerala. In addition, the
Company has two Food Processing Units in Punjab manufacturing - Snack Foods and
Soft Drink Concentrate. The Company also has a modern Rice Processing Unit in
Sonepat (Haryana).
The Company’s export turnover has risen from Rs. 9.5 Crores in 1989 to Rs. 200 Crores
in 1996. The exports basket includes food items such as branded Basmati Rice, Chili
Paste, Tomato Paste, Soft Drink Concentrate, Glass Bottles, Custom made Trucks, PET
Performs, PET Resins, Plastic Crates and Packaging Material required by the various
PepsiCo system around the world.
PepsiCo today is the leader in the Cola and Orange segments of beverages in India and
enjoys leadership in soft drinks in many parts of the country. It has the following brands
– Pepsi Cola, 7-UP, Miranda, Dukes Mangola, Teem, Lehar Evervess, Dukes Lemonade,
Soda, Drinking water (Aquafina) & Pepsi Aha.
14
The Snack Foods category includes Cheetos, Frito Lays Ruffles and Lehar range of
Snack Foods. Pepsi today has the best team of employees and franchisees in the country
and in a short span of 7 years has become a household name.
1. Vision and Mission
Our Vision articulates our dreams and goals for our business. It is our inspiration for the
results that we strive to achieve and our Mission articulates the purpose of our business
for us and the society at large. It can be considered in large measure as an inflection point
that will take the India business to new heights. No matter what location or what
function, we are all driven by the same vision to continue to be the fastest growing
convenient food company in India.
2. Organization Commitment
Organization values reflect our aspirations - the kind of company we want PepsiCo
to be. We express our values in the form of a commitment.
1. Sustained Growth
2. Empowered People
3. Responsibility and Trust
4. Care for Customers
3. Partnership with the Firm
PepsiCo also has formed partnerships with several brands it does not own, in
order to distribute these or market them with its own brands.
•
Elma Chips, leader of the Brazilian chip’s market
•
Frappuccino
•
Starbucks Double Shot
•
Starbucks Iced Coffee
•
Mandarin (license)
•
D&G (license)
15
•
Lipton Brisk
•
Lipton Original Iced Tea
•
Lipton Iced Tea
•
Ben & Jerry’s Milkshakes
•
Dole juices & juice drinks (license)
•
Sunny Delight (produced by PepsiCo for Procter & Gamble) Enriching and
empowering lives.
4. Using local talent to run operations in India
Since its entry into India, PepsiCo has provided direct employment to more than 3,000
people in India. Indirect employment, including services, suppliers and distributors, is
estimated at more than 60,000 people.
•
The project will create employment for 50000 people nationally
•
74 percent of the total investment will be in food and agro- processing.
Manufacturing of soft drinks will be limited to only 25 percent
•
PepsiCo will bring advanced technology in food processing and provide thrust by
marketing Indian products abroad
•
State of the art technology would be provided in the fields of food processing and
soft drink manufacturing at no foreign exchange outflow
•
50 percent of the total value of production will be exported
•
The export-import ratio will be 5:1 over 10 years, which means that for every dollar
spends in foreign exchange on this project, the company will ensure an export earning of
5 dollars for 10 years
•
An agro-research center will be established by PepsiCo. No foreign brand name
will be used for domestic sales
•
A substantial increase in government revenue due to consumer market expansion
and tax collection.
16
The proposal concluded by stating how well the project fitted with broad objectives of
the economy and how it 'specifically supported national priorities in area such as exports,
agriculture, employment and technology.'
5. Sourcing and manufacturing base for exports
Today PepsiCo is amongst the major multinational exporters. Cumulative exports over
the last 10 years have crossed US$ 504 million. Pepsi’s export business today supports
the company’s core food and beverage businesses: Pepsi has emerged as a high quality,
competitive supplier to the worldwide.
6. Investment of the company
PepsiCo India and its partners have invested more than U.S.$1 billion since the company
was established in the country. PepsiCo provides direct and indirect employment to
150,000 people including suppliers and distributors.
7. Sister Concern of PepsiCo
PepsiCo has built an expansive beverage and foods business. To support its operations,
PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are
franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-
the-art plants.
8. Employee Details
Madurai has a total workforce of 120 employees including workmen strength
of 85.
9. Workforce
•
Executives & Managers – 43
•
Associates - 124
17
•
TPBI - 40 & TPCI – 10
•
NPCI – 600
10. Total Productive Maintenance
To aim at
•
Zero failure
•
Zero defects
•
Zero disaster
To allow all the workers to participate
To improve over all equipments efficiency and reduction in cost
To build bright and clean work place
To make documents defined and clear
To reduce storage volumes and know the importance of cleaning
To train eyes and awareness for orderliness and fitness
To remove all necessary articles and eliminate personnel and duplicated files
1.3.6Various functional departments
1. Production Department
Production department is producing the product in various processes. The production
team is deciding production plan. The production team is responsible for planning the
production & maintaining the resource availability i.e. (Men & Material). The various
activities in production are planning, water treatment syrup preparation bottle inspection,
filling, crowning, coding, filled bottle inspection and casings.
2. Marketing Department
•
Finding the marketing demand
•
Satisfying customers needs
•
Maintaining proper relation between company and dealers
•
Fulfilling the gap between the finished goods and sales
18
3. Human Resource Department
Human Resource department plays a role in maintaining the industry and its people to
stay in peace & unity. This department has to take up the responsibility of keeping the
W.R. in a warm comfort, for which they have to look after all the work, is starting from
industrial relation to house keeping. Human Resources department is very essential & as
to be handled with care since it is a very sensitive area.
4. Finance Department
The finance department has to make payment whenever it is needed. The purchase
department purchase materials in consultation. The PepsiCo Company is automated and
follows the procedure in SAP (System Applications Product).
Functions of finance department are
•
Purchase Accounting
•
Material issue
•
Distribution and Selling
•
Branch Accounting
•
Auditing
•
Sales Tax
5. Quality Control Department
PepsiCo follows one quality standard across the globe. PepsiCo’s soft drinks meet the
local Indian standards (Health Ministry Standards for carbonated beverages notified July
15, 2004) which compare to the best-in-class and most stringent international standards
being followed anywhere in the world.
PepsiCo products comply with the Prevention of Food Adulteration Act (PFA) directive
on the use of water in the preparation of soft drinks. PepsiCo also comply with Bureau of
Indian Standards (BIS) for packaged drinking water. PepsiCo use a six-stage water
purification process to deliver this standard consistently. PepsiCo products carry a
19
quality assurance seal on them. The ‘One Quality Worldwide’ assurance seal appears on
the entire range of PepsiCo’s beverages.
6. Purchase Department
Purchasing refers to a business or organization attempting to acquire goods or services to
accomplish the goals of the enterprise. Though there are several organizations that
attempt to set standards in the purchasing process, processes can vary greatly between
organizations.
7. Shipping Department
•
To receive order
•
To maintain the record of glass bottles
•
To appoint the fork lift operator
•
To maintain the stock status report
•
To prepare a production plan
1.3.7 ORGANISATION STRUCTURE
20
VICE
PRESIDENT
GENERAL MANAGER
OPERATIONS
GENERAL
MANAGER
FINANCE
1.3.8 Ingredients
1. Carbonated water
2. Sugar
3. High fructose corn syrup
4. Color (Caramel)
5. Phosphoric acid
6. Caffeine
7. Emulsifier
8. Natural flavors.
1.3.9 Nutrients
1.Calories
100
21
PRODUCTION
CO-ORDINATOR
SHIPPING
MANAGER
HR
MANAGER
QC
MANAGER
MANUFACTURING
MANAGER
QC
EXECUTIVE
HR
EXECUTIVE
SHIPPING
EXECUTIVE
FINANCE
EXECUTIVE
PRODUCTION
EXECUTIVE
FINANCE CO-
ORDINATOR
PURCHASE
EXECUTIVE
STORES
EXECUTIVE
MIS
EXECUTIVE
FINANCIAL
EXECUTIVE
OPERATORS

2.Total fat (g)

0
3.Sodium (mg)
25
4.Potassium (mg)
10
5.Total carbohydrates (g) 27
6.Sugars (g)
27
7.Protein (g)
0
8.Caffeine (mg)
25
1.3.10 Competitors
1. Coca Cola
2. Parle
3. Kali mark
1.3.11 Product wise comparison of Pepsi with competitor Coca-Cola
•
Pepsi Coke,
Thumps Up
•
Pepsi Aha
•
Mirinda ( orange+lemon+apple)
Fanta(orange),
•
Teem Soda
Limca
•
Slice
Maaza
•
7UP
Sprite
•
Mountain dew
Kinley(soda)
•
Diet Pepsi
Diet Coke
•
Aquafina(mineral water)
Kinley (mineral water)
22
CHAPTER-II
REVIEW OF LITERATURE
2.1 Special concepts
1. Consumers
Consumers are the person who buys and utilize the final products.
2. Attitude
Attitude is a learned predisposition to behave in a consistently favourable or
unfavourable way with respect to a given object.
3. Consumer attitude
23
Consumer attitude is a learned predisposition to behave the consumer in a
consistently favourable or unfavourable way with respect to a given product.
4. Consumer Behaviour
Consumer behavior is a key success of any Company. Consumer behavior is
depending upon culture, value, traditions.
5. Brand
According to Keller what a distinguish a brand from its unbranded commodity counter
parts are the consumer perception and the feelings about the products attributes and how
they perform ultimately a brand resides in the minds of consumer.
6. Purchasing behaviour
A marketing firm must ascertain the nature of the customers buying behaviour, if it is to
market its product properly. In order to persuade a consumer to buy a product, marketers
try to determine the behavioural process of how a given product is purchased.
7. Post-Purchase Experience
Post-Purchase Experience is the experience that the consumer gets after using the
product. Consumer will use the product again if he feels that his satisfaction after use is
more or equal to the price of the product.
2.2 Literature Review
The review that follows covers with one exception, writings published in the last years.
The review is organized around the major themes that occur in literature on consumer’s
attitude. All the business is trying to make their products to succeed in the market. But
most of them do not attain their aim because of several reasons. Among them most
important reason is consumer attitude towards the product. To understand and predict the
consumer attitude is too difficult. There are many studies are conducted by the
researchers and the manufactures to understand the various consumer attitude. These
studies are very much helpful for our study also.
24
Noe (2000) says that the purpose of this paper is the study of factors responsible for
brand preference in FMCG products, increasing competition, more due to globalization,
is motivating many companies to base their strategies almost entirely on building brands.
Brand preference means to compare the different brands and opt for the most preferred
brand. This brand preference is influenced by various factors. In the identification of
factors affecting the brand preference, it was concluded that brand persona is the most
effective factor that affects the brand preference. This brand persona deals with the
personality aspects or the external attributes of brand, thus it can be said that consumer
prefer any brand by looking at the external attributes of a brand.
Stephen (2008) the intensity of colour and the flavour are the key drivers behind
consumer acceptance of beverages says a new study involving DANONE. But packaging
and labelling are not as important for winning over consumers, according to findings
published in the journal Food Quality and Preference, The study involved consumers at
different stages of development and highlights the importance of adopting a “sensory
marketing approach,” said the researchers from French research organisation Adriant.
Beverly (1998) said that the relative contributions of taste and health considerations on
consumer liking and purchase intent of cola drink. Eight types of commercial cola drinks
were evaluated by 305 adult consumers who also completed a brief questionnaire on food
habits. Data were analyzed using factor analysis. These data suggest that in spite of
current concern about reducing dietary fat, health remains secondary to taste in the
selection of cola drinks for consumers in this population.
Gibson (1998) Sugar-sweetened soft drinks are a special target of many obesity-
prevention strategies, yet critical reviews tend to be more cautious regarding the
etiological role of Sugar-sweetened soft drinks in promoting excess body weight.
Progress in reaching a definitive conclusion on the role of Sugar-sweetened soft drinks in
obesity is hampered by the paucity of good-quality interventions which reliably monitor
diet and lifestyle and adequately report effect sizes.
25

Libuda (2004) said that the replacement of soft drinks and other sugar-containing
beverages such as fruit juices by non-caloric alternatives seems to be a promising
approach for the prevention of overweight in childhood and adolescence. However, as the
cause of overweight and obesity is multifactorial, the limitation of soft drink consumption
needs to be incorporated in a complex strategy for obesity prevention. There is evidence
for a detrimental effect of soft drink consumption on body weight in childhood.
Watt (1997) says that a large proportion of pre-school children consume considerable
quantifies of soft drinks which have little or no nutritional value and are high in
carcinogenic non-milk extrinsic sugars. This has implications for children's dental and
general health. Recommendations for drinks consumption should be included in food
policy guidelines for pre-school children. Soft drinks were the most commonly consumed
drinks followed by whole milk and diet or low sugar varieties of soft drinks
CHAPTER-III
RESEARCH DESIGN
3.1 Scope of the study
The purpose of the study is to make an in-depth analysis of the current problem
relating to consumer attitude towards Pepsi under the current scenario of the Indian
industry.
3.2 Need for the study
•
The need for this study is to find out the consumer attitudes towards company’s
products.
•
To analyze the consumer perception about the product and impact of
advertisement of the company on the basis of questionnaire.
3.3 Objectives of the study
•
To find out the consumer perception about the product
•
To analyze the perception about Pepsi and its competitors
26

•
To study the advertisement impact of the product
•
To take advantage of the trend of health conscious consumers
•
To deliver consumer value and satisfaction
•
To convert our existing consumers into loyal consumers
•
To increase market share and attract new consumers
3.4 Sample design
a) Sampling method
The sampling method used in the study on Consumer attitude towards Pepsi is
convenient sampling method
b) Sample size
The sample size selected for the study is 200 consumers.
3.5 Sources of Data Collection
Primary and Secondary methods of data collection was employed for getting
data’s for this study.
a)
Primary data
Primary data’s were collected through questionnaires by direct interview and also
through online survey from the consumers.
b)
Secondary data
Secondary data's were collected through journals, websites and other text books.
3.6 Area of the study
The area of the study covers the ultimate consumers all over the Tamil Nadu
3.7 Tools used for Analysis
•
Simple Percentage method
27
•
Weighted average method
•
Multiple correlation
3.8 Period of the study
The period of the study is from 21st January 2010 to 15th May 2010
3.9 Limitations of the study
•
Time constraints
•
Some of the respondents refused to fill the questionnaires.
•
The responses may vary as some people did not want to come up with real
answers.
•
The people were busy in their own work so they might not have given
actual responses.
•
The survey is conducted only in few areas of Chennai, Madurai, Coimbatore, Tirunelveli,
Nagercoil. Hence the results may vary in other parts of the cities.
•
Small sample size.
•
And like any other research the limitation of personal bias of respondents
limits the scope of the study.
The findings are based on the survey conducted in the month of January to
March; the results may vary in other months.
28

CHAPTER-IV
ANALYSIS AND INTERPRETATIONS
4.1 Introduction
The following pages explain the analysis made based on the collected data’s. The
analysis regarding the following items are discussed, attitude of the consumers,
Demography wise analysis of the consumers, opinion of the consumers about the
variables. Various types of analysis are used. They are Simple percentage method,
weighted average method and multiple correlation analysis is expressed in the way of
tabulations.
4.2
Age group of Consumers
There are about 200 consumers taken in this survey to know the attitude about Pepsi. This
study was made to know the age of the consumers. This table shows the age of the
consumers since the age of the consumers vary from years shown below.
Table No.4.2
Age classification
Age group (in years)
No. of consumers
Percentage
15-18
6
3
19-22
29
14
29

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1.1 Introduction
1.2.1 Carbonated beverages
1.2.2 Overview of the industry
1.2.3 Soft drinks
1.2.4 Statistical Growth Rates
1.2.6 Market Segmentation
1.2.7.2 Percentage growth of various Non-Cola drink products
1.3.2 History
1.3.3 PepsiCo Headquarters
1.3.4 PepsiCo India Holdings Ltd
1.3.5 Pepsi in India
1.3.6 Various functional departments 1. Production Department
1.3.7 ORGANISATION STRUCTURE
1.3.8 Ingredients
1.3.9 Nutrients
1.3.10 Competitors
1.3.11 Product wise comparison of Pepsi with competitor Coca-Cola
2.1 Special concepts
2.2 Literature Review
3.1 Scope of the study
3.2 Need for the study
3.3 Objectives of the study
3.4 Sample design
3.5 Sources of Data Collection
3.6 Area of the study
3.7 Tools used for Analysis
3.8 Period of the study
3.9 Limitations of the study
4.1 Introduction
4.2 Age group of Consumers
4.3 Gender of the Consumers
4.4 Salary of the consumers
4.5 Education of the consumers
4.6 Occupation of the consumers
4.7 Likeliness of Soft drinks
4.8 Factors induces the consumer to buy Soft Drinks
4.9 Soft drinks really give the consumers a lift
4.10 Type of refreshment which experienced by the consumers
4.11 Quantity of soft drinks consumed regularly by the consumers
4.12 Favourite soft drink of consumers
4.13 Mostly consuming product in Pepsi
4.14 Preference of Brand
4.15 Various occasions soft drinks are frequently used
4.16 Consumption of soft drinks is more than water per day
4.17 Unit of soft drinks which consumed per day
4.19 Advertisement induces the consumers to purchase the soft drinks
4.20 Type of advertisement induces you to purchase soft drinks
4.21 Word of mouth induces neighbours or friends or relatives to buy Pepsi
4.22 Satisfaction level of consumers
4.23 Expected changes in Pepsi by consumers
4.24 Soft drink is healthy or not
4.25 Consumer’s preferable drink other than Soft drinks and water
4.27 Consumers give more value to which type of juices
4.28 Various occasions fresh juices are frequently used
4.29 Frequency of Pepsi in shop with other products
4.30 Consumer can get their preferred quantity instantly
4.31 Attractive package enhancing the consumer to buy Pepsi
4.32 Comparison of soft drinks with fresh juices
4.33 WEIGHTED AVERAGE METHOD
5.1 Findings
5.2 Suggestions
5.3 Conclusion
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