SUMMER TRAINING REPORT

ON

A COMPARATIVE ANALYSIS OF SALES AND DISTRIBUTION OF PEPSI AND COKE IN PATNA DEEPOT 2 AREA
UNDER

LUMBINI BEVERAGES PVT.LTD. HAJIPUR, PATNA

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION

(Session 2009-2011) PATNA UNIVERSITY, PATNA

2011
Under the Supervision and Guidance of Submitted by

Prof. (DR.) B. N. PANDEYMANOHAR KUMAR

Head & Director Management Programme Deptt.Of A.E. & Commerce, PU Roll- 15 MBA (2009-11)

CERTIFICATE OF THE SUPERVISOR

This is to certify that Mr. MANOHAR KUMAR, Class Roll No. 15, Session:2009-11, has prepared the summer training report entitled A COMPARATIVE ANALYSIS OF SALES AND DISTRIBUTION OF PEPSI AND COKE IN PATNA DEEPOT 2 AREA under my general supervision in the partialfulfillment of the requirement of the MBA course of the PATNA UNIVERSITY..

Signature of the Supervisor

Prof. (DR.) B. N. PANDEY Head & Director Management Programme

Deptt.of A.E. & Commerce, P.U.

ACKNOWLEDGMENT
This humble endeavor bears the imprint of many persons who were in one way or the other helpful in the completion of our report. We would like to take this opportunity to present our vote of thanks to our guide who acted as lighting pillar to enlighten our way through out this study. This study would not have been possible without the kind assistance and guidance of many people who indeed were helpful, cooperative and kind during the entire course of our project. We have tried our best to study A COMPARATIVE ANALYSIS OF SALES AND DISTRIBUTION OF PEPSI AND COKE IN PATNA DEEPOT 2 AREA. First and foremost, I express deep sense of gratitude to my honourable professor Dr. B.N.Pandey, Director, Mgt.programme, Deptt. of A.E. & Commerce, P.U., who assigned me the task of completing this summer training report. In this research we are highly grateful to our honourable supervisor Dr. B.N.PandeyDirector, Mgt.programme, and other faculties of our department for his support and encouragement throughout the project. Besides this we are also thankful to all the respondents, who have cooperated with us in answering our queries and filling the questionnaire. This project has been a great source of learning and experience.

Submitted By MANOHAR KUMAR

MBA (2009-11), ROLL-15

PATNA UNIVERSITY

PREFACE
Training as we know is essential to supplement to theoretical knowledge with the practical knowledge and to inculcate efficiency. It was observed

that due to lack of practical knowledge most of the managers are ineffective in their job. Due to this reason Summer Training of eight weeks has beenmade an integral part of the syllabus of MBA by Patna University. Summer training report is considered a major component of the training. Summer training remains incomplete till the report has been presented and/or written. The purpose of summer training is not well served unless the findings and experiences gained are made known to others. Writing of report is the last step in the Summer Training Programme. Thus, the purpose of training and subsequent of report writing is meant both as a mean of gaining first hand experience in the organization and also an academic exercise. In the above mentioned context, an attempt has been made for getting this practical training. The training is done under LUMBINI BEVERAGES PVT.LTD. Hajipur, Patna. The Summer Training Report, which is prepared after eight weeks of training period, is here for the partial fulfillment for the award of the degree of MBA (Marketing). The topic A COMPARATIVE ANALYSIS OF SALES AND DISTRIBUTION OF PEPSI AND COKE IN PATNA DEEPOT 2 AREA, has been selected to understand the market share of both the companies in soft drinks market and to understand the effectiveness of the sales and distribution strategy of both the companies in the depot 2 area,i.e., Boring Canal Road Area. Through this study an attempt has been made to understand the strategies regarding sales, promotion, customer satisfaction, placing of these two companies. I would like to express my sincere gratitude to all those persons who directly or indirectly helped me in the preparation of the summer training report.

MANOHAR KUMAR

CONTENT
Letter of the Department Certificate of the Organization Certificate of the Supervisor Acknowledgement Preface (i) (ii) (iii) (iv) (v)

PARTICULARS Chapter I: Introduction Introduction of the Study Importance of the Study Objectives of the Study Scope of the Study Research Methodology Hypothesis of the Study Limitation of the Study Chapter II:Introduction to Soft Drink Industry

PAGE Nos.

The FMCG Industry in India Beverage Industry in India-A Brief Insight Major Players of Soft Drink Industry Pepsi Company profile Chapter III: Organizational Profile Introduction of LBPL About the PEPSI Brands About competitors Brand

Chapter IV: Data Analysis and Interpretation Interpretation of Outlets. Market Share of Different Outlets. Market Share of Cooling Percentage Share of GSB of Different Soft Drinks. Percentage Share of Satisfaction.from Distribution

Chapter V:Conclusion and Suggestions Conclusion Suggestions

Annexure:
Bibliography Questionnaire

CHAPTER-I
INTRODUCTION
Good marketing is no accident, but a result of careful planning and execution. Marketing practices are continually being refined and reformed in virtually all industries to increase the chances of success. Marketing excellence is rare and difficult to achieve. Marketing is both art and science there is constant tension between the formulated side of marketing and the creative side.

The world economy has undergone a radical transformation in the last two decades Geographical and cultural distance have shrunk significantly with the improvements in the production, transportation and communication. These advances have permitted companies to widen substantially both these markets and their supplier sources. And thus the role of marketing becomes wide. Marketing is the specialization subject of MBA curriculum. When a flood of consumer products are coming into the market, every company needs people specialized in marketing to promote their product. Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is meetings needs profitably. The 21st century is the era of Advertising, Marketing and Sales Production; Marketing is to convert social needs into profitable opportunities. As it is said Marketing thinking starts with the human needs and wants. Apart from basic necessities of air, water, shelter and clothing, every person has strong desire for recreation and entertainment. They have strong preference for particular brand of basic and services. Marketing serves as the link between the societys needs and its pattern of Industrial response. 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. When I was told to select the topic I was a bit nervous because I was new in the marketing field, but after a minute I suggest our group leader to select this topic for study. This topic is an important activity of any business organization. This topic was very helpful to collect information about current happening in the market. It also helps to make improvements in service and quality of the product, for their long time existence in the market and getting profit. Simultaneously, it is also helpful for me to learn the consumer behavior and retailers behavior and observe their attitude towards demand of particular products practica

OBJECTIVES OF THE STUDY

1. To know the stock position of Pepsi and its competitors. 2. To study the marketing and promotional activities at various retail outlets.

3.To know the per day sale of PEPSI brand and its competitors in crates. 4. To study the percentage share of Pepsis cooling equipments. 5.To know how many outlets are covered with glow signboard of PEPSI. 6.To know the satisfaction level of retailers regarding distribution strategy of PEPSI. . scope of the study may be as follows:The main scope of this research is ascertaining the various methods to increase the sales volume and distribution activity of the concern. The methods include regular measure to make the brand position in the market and taking measures to confirm the brand in position. One of the most important aspects of this study is also to increase the market segment and share of the products.

1. 2. 3. 4. 5. 6.

To Target market segment. To evaluate awareness about Pepsi Company. To Compare of Pepsi products to competitors. To Identify of market potential. To evaluate customers need with company product. To Collect suggestions for product improvements etc.

Methodology
All the findings and conclusion obtained are based on the survey done in the working area. Within the time limit, an attempt has been made to select the sample representative of the whole group. During my job training I maintained different routes during my dealer survey. I had to collected data

from the distributers of Patna under Lumbini Beverages Pvt. Ltd., Patna and the organization itself.
Data Source:Retailers and Dealers (Cold Drinks stalls, Ice Stalls, Hotels, Restaurants, Sweet Shops, Pan Shops, General Stores, Telephone Booths etc), Distributor internal Companys records, websites of the companies etc. Data Type:The Secondary data will be collected. The primary data may also be used. Research Approaches:Observation Method, Analytical Research and Survey Method Sampling Procedure:Simple Random Sampling and Census Sampling Primary data collection:All the dealers/retailers would be personally visited and interviewed. There would be a format for collecting the details of the dealers. The format will be filled by taking the information from the dealer or by monitoring the shops.

Secondary data collection:The secondary data would be collected on the basis of organizational files, official bulletins and records, official journals, published data in the annual general report and through various preserved information in the data base at the Pepsi sites e.g., www.pepsico.com, www.pepsizone.com, www.cocacolaindia.com, etc.

Hypothesis of the Study

Null Hypothesis (Ho):Pepsi is the market leader in the sales of soft drink industry. Alternate Hypothesis (H1):Pepsi is not the market leader in the sales of soft drink industry.

Limitations of the Study

1.It will not be possible to understand thoroughly about the different marketing aspects of liquor industry in a span of two months. 2.All the work shall be limited in Patna area, so, the findings should not be generalized. The findings of survey will be strictly based on the response of consumers, retailers, since it is difficult to ascertain the authenticity of their statement. 3.Many of the time the respondents were not ready to cooperate. 4.Some of the time the exact figure of brands will notbe revealed by the respondents.

CHAPTER-II

Introduction to the Soft Drink Industry

A BRIEF INSIGHT:- THE FMCG INDUSTRY IN INDIA
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers'

personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.

The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source:

HCCBPL, Monthly Circular, March)

The FMCG sector consists of the following categories: Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble. Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman. Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur.

 Spirits and Tobacco:- the major players being; ITC, Godfrey, Philips and UB.

BEVERAGE INDUSTRY IN INDIA:- A BRIEF INSIGHT

In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

BEVERAGES

Alcoholic

Non-Alcoholic

Carbonated

Non-Carbonated

Cola

Non-Cola

Non-Cola

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: Alcoholic, non-alcoholic and sports beverages. Natural and Synthetic beverages. In-home consumption and out of home on premises consumption.

 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens. Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption. If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.

Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.

 Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.

MAJOR PLAYERS OF SOFT DRINK INDUSTRY

1. Cadbury Schweppes plc Major global beverage and confectionery company. Manufactures, markets, and distributes branded products around the world. Including Schweppes, Dr Pepper, and Snapple.

2. Clearly Canadian One of the pioneers of the New Age or Alternative beverage industry, bottling natural and flavored sparkling water.

3. Coca-Cola Syrups, concentrates and beverage bases for Coca-Cola and over 160 other company soft-drink brands are manufactured and sold by The Coca-Cola Co. and its subsidiaries in nearly 200 countries around the world. 4. Cott Corporation Leading worldwide supplier of premium retailer branded beverages and the world's fourth largest soft drink company.

5. Dr. Pepper/Seven Up Dr. Pepper is the oldest major soft drink in the U.S. and the principal brand of Dr. Pepper/Seven Up, Inc. 6. Nantucket Nectars The Juice Guys started their business delivering soft drinks and other useful items to visiting yachtsmen in Nantucket Harbor in 1989. They now supply 35 states, Canada, and other countries.

7. Pepsi Bottling Group World's largest manufacturer, seller and distributor of PepsiCola beverages with operations in the U.S., Canada, Greece, Russia, Spain and Turkey.

8. PepsiCo Pepsi-Cola Company, Frito-Lay Company, and Tropicana Products, Inc.

9. Vermont Pure Springs Bottlers of Vermont Pure Natural Spring Water, taken from the Green Mountains of Vermont after being naturally filtered for up to 20 years.

PEPSI-COMPANY PROFILE
Pepsi Co. Inc., headquartered in New Virginia, USA started its operations in 1898 under the leadership of Mr. Peter Thompson. Since then, Pepsi Co. Inc. has reached new heights. Later a snack foods division and fruit juice division were also started, namely Frito Lay Company and Tropicana Company. Currently, Mr. Steve Reinamond holds the chairmanship of the Pepsi Co. Inc. Pepsi Co. Inc. is amongst the top 100 corporations worldwide. Core Business Net sales Operations in 1. Pepsi Cola Company Beverage and Snack foods US $ 20 Billion + (Rs. 80,000 Cr.) > 1,50,000

Employee Strength -

> 190 countries Beverages

The parent company, Pepsi Co. Inc. has three sub divisions: Net Sales - US$ 10.5 Billion Only one major competitor Market leader in > 40 countries. 2. Frito Lay Company - Packaged Foods Net Sales US $ 10.4 Billion World's largest Snack Food Company 3. Tropicana Company - Fruit and Vegetable juices Net Sales - US $ 2.2 Billion Employee strength - > 4,000 Dominant market share in U.S. Operations in > 29 countries Pepsi Cola company has two sub divisions: (a) Pepsi Cola International (PCI) (b) Pepsi Cola North America

Pepsi Cola Company has its presence felt in 190 countries. PCI has its several business units worldwise i.e. in China, Burma, Australia, Pakistan, Bangladesh, Dubai, Africa, India, Nepal, Sri Lanka, Europe, Spain and Russia. The business units of Pepsi in India started as Pepsi Foods Limited in 1989. The turnover of pepsiIndia including FOBO sales is 3000 countries. The business of Pepsi is to make and supply the concentrate to

COBO

JV

FOBO

Pepsi

Pepsi & Partner

Local Bottler

Makes, sells and deliver product

Makes sells and deliver product

Makes, sales and deliver product

The concentrate is made around the world in Uruguay, Argentina, Brazil, Venezuela, Mexico, Peurto Rico, United States, Canada, Ireland, Turkey, Pakistan, India and China. The revenues received from selling the concentrate are used for advertisement, marketing and general administration. Pepsi Co's net sales exceed the ravishing figure of US $ 20 Billion. There are million of sales each day. Although the margin per case is quite low but large numbers make the revenues remarkable, so each sales counts.

MARKETING
The Carbonated soft drink market has become a major business in India in recent years with an annual turnover of nearly 2500 crores.

The industry is being dominated by key share players - New York based Pepsi Co. Inc. Atlanta based Coca Cola company and UK based Cadbury Schwepes. The marekt is estimated to be growing at a rate of 20% p.a. Throughout the globe these major players have been battling it out for a bigger chauntic of the evergrowingsoftdrink market now with the arrival of these giants. India is a part of the ongoing soft drink battle. Ever since Pepsi has entered the Indian market in 1990 it has pumped 1000 crores into its Indian operations, while Coke has committed to invest 2400 crores, with seven huge investments at stake we can rightly said that the battle of supermacy has just begun. In the carbonated soft drink market there are basic carry four categories or sectors which aer given below : 1. Cola 2. Orange 3. Cloudy Lemon 4. Clear Lemon Sector chose e.g., Pepsi, Coke, Thums Up. Fanta, Mirinda Orange Limca, Mirinda Lemon 7 Up, Sprite Cola

Major brands in the market sector and market share Coke - This brand is owned by Atlanta based Coca Cola company. It has a market share of 20.1% in India. Coke has been positioned as an all time an occasion drink and not as a special treat beverage. Pepsi - It is a brand owned by New York based PepsiCo Inc. Pepsi is being targeted at teens and twenty same things whom the company has identified as its core customers. It has a market share of 26.5%. Thums Up - Coca Cola owned Thums Up has a market share of 14.5%. It has acquired a macho image and much of its advertising targets the 20-29 age group. Other categories available in the market Category Orange Fanta - It is a brand owned by Coca Cola. It has a market share of 6% Fanta is being projected as a fun drink, the first love of 13 to 19 years old. Mirinda Orange - Pepsi owned Mirinda Orange has a total market share of 7.5%. It has been positioned to directly to compete with Coca Cola's Fanta.

Category -

Cloudy Lemon

Limca- It has a market share of 9%. Limca is owned by Coca Cola. Limca is to anyone who wants to take a breathe with its catchline ("Take it easy"). Mirinda Lemon - Pepsi owned Mirinda Lemon is trying to brake into the Cloudy lemon drink segment which constitutes 12% of the 2500 crore segment drink market and is growing at a rate of 11% p.a. Category Clear Lemon 7 Up - Pepsi relaunched 7 UP for the second time in Feb 1998, roping tenure stars. Mahesh Bhupati and Leander Paes to endorse the brand. This brand is being projected as a refreshing drink with its catch line. Doubly refreshing. It has a market share of 3%. Both the major players i.e. Pepsi and Coke see an enormous potential in this country where flashing a carbonated beverage is still considered a treat, virtually a luxury. Consequently by worlds standards India's percapita consumption of eight bottles is less than even than of Pakistan and Bangladesh where it is four times that much. Soft drinks which retail anywhere from 6-10 Rs. are expensive when compared against the purchasing power of the people. According to one study it takes an Indian 1.5 hrs of work to be able to buy a bottle of soft drink, in other countries this norm is minutes. But with the growing middle class (150-200) million. This situation is likely to change. The middle class is emerging as the consumption community of the country. The numbers of the middle class are better educted, and exposed to the life styles of the rich. Their aspirations have been constantly growing and they often spend more than what they earn to cope up with their new social image. Analysis has shown that over the years the expenditure on non food items is constantly on a rise with a change in the mindsets of people "Yesterdays luxuries are fast becoming todays necessities". Eating habits of consumers and taste changing on average Indian is now spending his income more liberally than ever before and this change has caused the growth of Fast Food and soft drink in India. In India 90% of the soft drinks are consumed outside the house on special occasions on with friends, the product is more of a life style statement than simple means of quenching thirst. It is also an impulse

driven purchase. Going by the trends in the market different brand are consumed by different sets of consumers for e.g. Orange brand is mostly consumed by children, Lemon drinks are mostly consumed by older age groups and Cola brands are generally consumed by teenagers and people in their twenties.

DISTRIBUTION CHANNEL
Distribution channel can be described by the number of channel is involved. Each layer of marketing intermediaries that performed same work in bringing the products and its ownership closes to the final buyer is a channel in the soft drink industry of different length are as follows. Single level channel or zero level channel This channel is called direct marketing channel, has no intermediary level. It consists of a company selling directly to consumer e.g. when we are delivering to the party order of certain number of crates of sof t drinks to consumer directly.

Second level channel We have three wheelers who are supplying not only to the small shopkeepers but also to the house the remaining channels are indirectly marketing channels. Second contain one intermediary level. In consumer markets, this level is typically a retailers.e.g. We sell bottle to retail outlets that in turn sell them to find consumer. Third level channel Channel third contains two intermediary levels, a whole seller and retailers, in this system we sellers our products in large quantity to the wholesaler of called as agencies in our trade who them sell then to the small retailers. This type of system is adopted when we are not able to our agencies so that our product could reach to the retailers where our van or three wheelers scooter cannot go. Multi level channel

This channel contains three intermediaries level. The wholesalers, jobber and retailers. In this the job of the jobber is that, the purchase the crates from wholesalers and then sells them to the reta ilers. This system is adopted by in these cases where the agency does not have its own distribution system. A company can choose any of the following distribution type. Exclusive Distribution Selective Distribution Intensive Distribution Pepsi has adopted the intensive distribution strategy. Intensive Distribution A strategy of intensive distribution is characterized by placing the goods of service in as many outlets as possible, when the consumers requires a great deal of location convenience, it is important to after greater intensity of distribution. This strategy is generally used for convenience items such as tabacoo products, gasoline, and soap and snack foods and bubblegum. Manufacturing are constantly tempted to move from exclusive or selective distribution to more intensive distribution to increase their coverage and sales you could find Pepsi in nursing homes, confectionary shop, department stores, you name it and Pepsi as available.

SEGMENTATION VARIABLES
Major segmentation of soft drink market Region - The Carbonated soft drink market on be segmented on the basis of different regions of the country. For e.g., Coca Cola scanned the four regions in the country to see which is the most preferred brands in each region based on the findings some brands were designed be more visible than others in a particular region. Today Calcutta and Mumbai see more of Thums Up while Chandigarh sees more of Coke. Demographic Age - Consumer wants change with age hence age is a major segmentation variable used by the carbonated soft drink manufacturers. Consequently different brands are targeted at consumers keeping their age requirment in mind. For e.g. Cola drinks are mostly targeted at teenagers and people. In their twenties.

Gender - It provides vital information with regards to an individuals taste and preference for e.g. females prefer non cola brands whereas males / men prefer Cola brands. P.L.C - In U.S. and U.K the carbonated softdrinks market with a per capita consumption of over 300 drinks is in the maturity stage of its product life cycle. The Indian market is in the growth stage with the market growing as a rate of nearly 20%. The volumes could reach one billion cares within 10 years. in the last summer reason Coca Cola gains it has sold over 70 million cares of all its light brands (Coca Cola, Fanta, Thums Up, Limca, Gold Spot, Maza, Citra, Kinley Soda). Individually too the brand has done well so far according to company data brand Coke for instance has grown by 3% Limca has grown by 23% and Fanta volumes have swelled by an unbelievable 70%. On the other hand Pepsi has recorded an impressive 42% growth over the last year. in April alone it showed a whooping 65% jump in its volume over 1999, and in May it has sold 19 million cases. If growth more or less keeps pace Pepsi hopes to close the year with total sales of 105 million cases. Coke and Pepsi have already invested 2400 cr and 1000 cr respectively in their Indian operations, such huge investments coupled with the market growth rate along with other related factors market is shore to grow at a zooming rate.

MARKETING STRATEGIES ADOPTED BY PEPSI

Pepsi has gone in for concentration segmentation since the beginning. Pepsi has targeted the youth segment instead [eg.here Generation Next, or Be young have fun drink Pepsi type slogans were all over the country.] trying to be something to all segments. Pepsi has since the beginning strove to achieve its international position as a drink for new generation, and has succeeded in positioning itself for the younger generation.Pepsi Colas Strategy is based on Target core brands Focus on business growth Satisfy market priorities Focus on franchising with building care of company owner. Pepsi also has a very well managed distribution system and coupled with aggressive marketing and advertising policy has achieved the number one position in Indian Soft drinks market. India is one very

few country where Pepsi had been able to beat its rival Coke for number one spot. Pepsi has adopted the intensive distribution strategy.

Intensive Distribution
A strategy of intensive distribution is characterized by placing the goods of service in as many outlets as possible, when the consumers requires a great deal of location convenience, it is important to after greater intensity of distribution. This strategy is generally used for convenience items such as tabacoo products, gasoline, and soap and snack foods and bubblegum. Manufacturing are constantly tempted to move from exclusive or selective distribution to more intensive distribution to increase their coverage and sales you could find Pepsi in nursing homes, confectionary shop, department stores, you name it and Pepsi as available.

PEPSI PRODUCTS
Category Brands Pepsi-Cola, Caffeine Free Pepsi, Diet Pepsi Caffeine Free Diet Pepsi, Pepsi Twist (regular & diet), Wild Cherry Pepsi, Pepsi Blue, Pepsi ONE Pepsi-Cola, Mountain Dew , Mug, Sierra Mist, Slice (soda); Lipton * (iced tea); Dole* (juices and fruit drinks); FruitWorks (juice drinks); Aquafina (water); Frappuccino*, Starbucks* (coffee drinks); SoBe (juice drinks and teas)l AMP (energy drink), Gatorade (sports drink), Propel Fitness Water (enahnced water) Tropicana (juices and smoothies, Loza (juices and nectars) Copella , Frui'Vita (juices), Alvalle ( fruit juices and vegetable juices) Mirinda, Pepsi Limn, Kas, Teem. Manzanita Sol, Paso de los Toros, Fruko , Evervess, Yedigun , Shani, Fiesta, D&G*, Mandarin*, Radical Fruit Lay's. Maui Style, Miss Vickie's , Ruffles, Sabritas (potato chips);

Pepsi

Other US beverages

Tropicana brands Other beverages (outside US) Frito-Lay

snacks

Quavers (potato snacks); Doritos, 3D, Santitas, Tostitos (tortilla chips), Fritos (corn chips). Cheetos, Niknaks (cheese snacks), Rold Gold (pretzels) Funyuns (onion rings), Go Snacks, Sunchips (multigrain chips), Sabritones, Bocabits (wheat snacks); Crack er Jack (candy coated popcorn), Chester's, Smartfood (popcorn), Gamesa . Grandma's (cookies), Baken-ets (fried pork skins), Oberto, Rustler's (meat snacks)l Churrumais, Crujitos, Fandangos, Wotsits (corn snacks), Frito-Lay (nuts); Frito-Lay, Ruffles, Fritos and Tostitos (dips and salsas); Frito-Lay, Doritos and Cheetos (crackers); Hamka's, Munchies, Sonric's (snacks) Munchos, Smith's, Walkers (potato crisps) Quaker (cereal, granola bars, snack foods, baking mixes) Cap'n Crunch, Life, Quisp, King Vitaman, Mother's, Sugar Puffs, Puffed Wheat, Harvest Crunch, Cruesli, Quake, Scott's Oats, Oat Bran Crispies (cereal), Harvese Chewy (granola bars), Aunt Jemima (mixes, Coqueiro (canned fish)and syrups), Crisp'ums, Spudz (snacks) Toddynho (chocolate drink),

Quaker brands

CHAPTER-III

Organizational Profile
Introduction of LBPL
A BRIEF HISTORY OF LUMBINI BEVERAGES PVT. LTD.
Lumbini Beverages Pvt. Ltd. is situated at Industrial Area, Hajipur in Vaishali district of Bihar. Mr. CharanKhilani, who is a resident of Kolkata, established it in the year 1997. It is one of the Pepsi Foods bottling Plants in Bihar. Ananda Marketing Pvt. Ltd., was a marketing division of LBPL. But now LBPL does its marketing itself.

PROFILE OF LUMBINI BEVERAGE PVT. LTD.

Company Land Area Location and Authority 844101. : : 9.30 Acres. EPIP, Industrial Area, Hajipur-

Name of the Director Name of the CEO Industrial License No.

: : :

Capacity Nature of the product No. of the Employees Control Board

: : : :

CharanKhilani. Mr. G.P. Singh. Registration No. H12475(C), Factory Lic. No. 66750/VLI, Date-16.08.1997, FPO License No. 10607/97. 1500 bottles per minute. Cola, juice based, lime based, water, Lemon Based, Orange flavored etc. 150+200(max.) Seasonal laboures on any day in the season. No. 1877. Date-07/04/1997.

Product Profile of the LBPL

Product Pepsi Pepsi Pepsi(CAN) Pepsi(CAN) Pepsi Pepsi Pepsi Diet (CAN) Pepsi Diet (CAN) Mirinda Mirinda Mirinda(CAN) Mirinda Mirinda Mirinda 7up 7up 7up 7up 7up 7up(CAN) Mountain Dew Mountain Dew Mountain Dew Flavour Cola Cola Cola Cola Cola Cola Cola Cola Orange Orange Orange Orange Lemon Orange Lime Lime Lime Lime Lime Lime Lemon Lemon Lemon Colour Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-Sugar sunset Sunset Sunset Sunset Tetrazin Sunset No colour No colour No colour No colour No colour No colour No colour No colour No colour Quantity 200ml 300ml 250ml 330ml 600ml 2lt 330ml 500ml 200ml 300ml 330ml 600ml 300ml 2lt 200ml 250ml 300ml 600ml 2lt 330ml 200ml 300ml 600ml

Mountain Dew Mountain Dew(CAN) Slice Slice Slice Slice Tropicana Twister Tropicana Twister Tropicana Tropicana Aqua Fina Aqua Fina Aqua Fina

Lemon Lemon Mango Mango Mango Mango Orange Orange Many Many NA NA NA

No colour No colour Yellow Yellow Yellow Yellow Sunset Sunset -------------------------------

2lt 330ml 200ml 250ml 500ml 1.2lt 350ml 1.2lt 200ml 1lt 500ml 1lt 2lt

Distribution Channel of Lumbini Beverage Pvt. Ltd.

To make its products available at the right place, at the right time in the market, at the right place, the sales department of the company plays major attention towards controlling the channel of distribution. The company right from its beginning stage maintains single type of marketing channel. The nature of channel is as follows: Company Distributors Retailers Consumers 1. About Distributors At first, soft drink is supplied to distributors. Retailers cannot

take the directly from the company. They have to take it from their respective of nearest distributors. The distributors selected on the basis of assurance given by them regarding minimum sales, which they have mention annually. The selection is also done on the financial position and reputation of distributing in the market. AS for the example, first priority is given to those people who are in cigarette business. Depending upon market each distributor in its initial stage, deposit some security money. This amount varies between five to ten thousand.

CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION:1. INTERPRETATION OF OUTLETS. 2. MARKET SHARE OF DIFFERENT OUTLETS.

3. MARKET SHARE OF COOLING. 4. EQUIPMENTS OF DIFFERENT SOFT DRINKS.

5. PERCENTAGE SHARE OF GLOW SIGN BOARD OF DIFFERENT SOFT DRINKS. 6. PERCENTAGE SHARE OF SATISFACTION OF DISTRIBUTION.

4.1: No. of outlets in different market areas in which the study

has been done are as follows:S. No. 1 2 3 4 Location RAJA POOL GOSAI TOLA KURJI DIGHA TOTAL No. of outlets 7 10 11 12 40

Interpretation:The company has broader coverage in this area as coke. The company must target this area to increase the sales volume.

Shop surveyed at different locations

RAJA POOL GOSAI TOLA KURJI DIGHA

4.2: Types of Outlet:S. No. 1 2 3 Type EATRY GROCERY CONVENIENT Total No. of outlets 9 15 16 40

Types of Outlet

Interpretation:The maximum number of outlet in this area of GROCERY CLASS. So the PEPSI must ensure the proper delivery of its products in GROCERY CLASS .

4.3: MARKET SHARE OF DIFFERENT SOFT DRINKS

1. The Cola Markets: Products Pepsi-Cola Coca-Cola Thumps Up Total

% Share 20% 45% 35% 100%

The Cola Market

Pepsi-Cola Coca-Cola Thumps Up

Interpretation:There is dominancy of Thumps Up in the Cola segment of soft drinks in this market. Pepsi is its competitor.

2. The Orange Flavoured Soft Drinks:Products Mirinda Fanta Total % Share 40% 60% 100%

Market Share of orange Soft Drinks

Mirinda Fanta

Interpretation:The Graph shows that there is a majority of customers of Fanta in Orange Flavoured Soft Drink Market.

3. Clear Lime Market:Products 7 UP Sprite Total % Share 35% 65% 100%

Market Share in Clear Lime Market

7 UP Sprite

Interpretation:There is great dominancy of Sprite in this market. Customers firstly demand always Sprite. They take 7UP only as the substitute of Sprite.

4.4: PERCENTAGE SHARE OF CHILLING EQUIPMENTS

1. % Share of VISI Coolers:Company Name PEPSI Coca-Cola Own Total No. 18 25 10 53

% Share of VISI Coolers

PEPSI COCA-COLA OWN

Interpretation:From the above diagram we can conclude that the number of VISI coolers distributed from Coca-Cola is much more than PEPSI.

4.5: PERCENTAGE SHARE OF GLOW SIGN BOARD:Company Name PEPSI COCA-COLA TOTAL %Share 35% 65% 100%

% SHARE OF GLOW SIGN BOARD

PEPSI COCA-COLA

Interpretation:From the above diagram it is clear that 35% of glow sign board is of PEPSI while 65% is that of COCA-COLA .

4.6:RETAILORS SATISFACTION REGARDING

DISTRIBUTION:PRODUCT NAME RETAILORS PEPSI COCA-COLA SATISFIED 22 30

RETAILORS SATISFACTION REGARDING DISTRIBUTION

PEPSI COCA-COLA

Interpretation:Out of 40 retailers only 22 were satisfied with the distribution strategy of Pepsi in that area, where as 30 retailers were satisfied with the cokes distribution strategy.

CHAPTER V Conclusion
Coke is covering more share in the market in comparison of Pepsi. Most of the retailers are satisfied by the schemes of both the companies. Retailers willing to sell the Coke brand more over the Pepsi. The advertisement in that area by Pepsi is lower than the Coke. The availability of Pepsi product in that area was not satisfactory. The schemes from Pepsi are not properly delivered to its retailers.

 There is a great need to replace all small cooling machines with the new one. There are low retailers of Pepsi in that area.

Measures suggested to PEPSI (LBPL) Patna

Need to provide better schemes to the small retailers as well. Need to reduce the prices to improve their sales. Continuously they need to introduce new schemes. Pepsi need to target other age groups as well. There is a need for replacement of old and defective cooling machines with new and advanced one.

Bibliography

 Magazines Marketing strategies by Gyansingh http://www.slideshare.net/thismakesmyday/creativemarketing-battle-coca-cola-and-pepsi-cola-presentation621981 http://marketing.about.com/ http://www.freeessays.cc/db/29/mul22.shtml http://www.academon.com/lib/essay/marketing-strategypepsi.html

Annexure
QUESTIONNAIRE FOR RETAILERS
1) Which soft drink brand preferred by the consumers a. PEPSI b. COKE c. OTHERS 2) Are the retailers satisfied with schemes of coke?? a) YES b) NO 3) Are the Retailers satisfied with schemes of Pepsi?? a) YES b) NO 4) Customers preference depends upon????

a) b) c) d)

DISCOUNT ADVERTISEMENT AVAILABILITY BRAND NAME

5) Which brand retailers willing to sell?? a) COKE b) PEPSI

QUESTIONNAIRE FOR CONSUMERS

1) Which brand is preferred by the consumers???? a) PEPSI b) COKE 2) Are they satisfied by the promotional strategies of coke and Pepsi?? a) YES b) NO 3) Do you think home delivery distribution will affect on sales?? a) YES b) NO 4) Does u think that companies need to reduce their prices to improve their sales???? a) YES b) NO