CONTENTS

PREFACE ACKNOWLEDGEMENT EXECUTIVE SUMMARY 1. INTRODUCTION TO THE STUDY RATIONALE OBJECTIVES IMPORTANCE AND RELEVANCE OF THE STUDY SCOPE LIMITATION 2. ORGANISATION PROFILE HISTORY AND DEVELOPMENT VISION AND MISSION PRODUCT PORTFOLIO 3. ORGANISATION STRUCTURE 30-35 HISTORY AND ORGANISATIONAL STRUCTURE OF LUMBINI BEVERAGE PVT. LTD. HAZIPUR 4. COMPETITORS ANALYSIS 5. RESEARCH METHODOLOGY RESEARCH DESIGN SOURCES OF DATA DATA COLLECTION TOOLS SAMPLING DESIGN 6. DATA ANALYSIS AND INTERPRETATION 7. FINDINGS 8. RECOMMENDATIONS APPENDIX DAILY CALL SHEET AND QUESTIONNAIRE BIBLIOGRAPHY 42-48 52-53 54-56 58-62 36-39 40-41 14-29 8-13

CHAPTER 1
INTRODUCTION TO THE STUDY RATIONALE OBJECTIVES IMPORTANCE AND RELEVANCE OF THE STUDY SCOPE LIMITATION

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. We can divide Beverages into two sections i.e. Alcoholic & Non-alcoholic. The non-alcoholic drinks are soft drinks that can be further classified Cola, Lemon, Orange, Mango and Apple segment.

Rationale
To determine the market position of PepsiCo product in Patna region. To determine the scope improvement in market position. To determine the weakness of distribution channel of PepsiCo products. To determine the customer/Retailers response towards PepsiCo Products.

Objectives of Study
Management is a course which teaches the student to get the work done properly from different available sources viz. man, machine, material, money etc. So there can be a satisfaction from the organization side and the workers side who play a significant role in achieving success. So far the fulfillment or the management course, it gives emphasis to project work and students learn how to plan in practical terms rather in terms of theory only. Student tends to develop analytical and problem solving skill. We necessary become motivated and competitive, in fact all the learning that goes on for the two year term become so much the part of our thinking that we developed a well all rounded personality.

The following are the objectives and purpose of the study For the fulfillment of MBA programme as realized by the A.N.COLLEGE, PATNA (AICTE approved). To care and contact with the working of an organization and to see the different types of marketing activities. The main emphasis is on the distribution Channel aspect of the organization.

 Whatever the subject taught in the class room of MBA course that is completely theoretical. So during the training period we compare how the marketing research (sales) activities (practical) of our organization with the theories. To test the effectiveness of the distribution network. To know the importance of availability & visibility of product and chiller. To check the capacity of chiller of Pepsi and its competitors. To check the SKUS of PepsiCo and its competitors. Selling and distribution of Beverage Product. To provide the useful information to the PepsiCo regarding its competitors. To know the per day sale of Pepsi brand and its competitors in crates. To know the Outlet & location from where the consumer buy product. To know other promotional measures that would be effective in increase share. To know the suggestive steps that would be beneficial to PepsiCo in order to improve its distribution network. Marketing of PepsiCo Products. Looking to the problem of retailers regarding PepsiCo products. Finding the gap between retailer and Depot.

IMPORTANCE AND RELEVANCE OF THE STUDY

Cold drinks were started with the idea of quenching the thirst of the persons traveling. It was also felt that reliable good water was not available everywhere. So people would really on their packed bottle and with this idea its makers made these drinks available mostly, at those places where water was not available i.e. on highways and long distance trains. But slowly and slowly with its beautiful taste these become very popular and now they are available not only in the market and street corners, but also people have started keeping it in their house. The credit of popularizing the soft drink goes to Coca Cola. This was the drink which is liked by all ladies, gents and children. Now days soft drinks are quenching thirst looks more often; they are taken due to habits. Gold Sport is considered as the first branded soft drinks, established 53 years ago before all empowering Coca Cola faced competitions and its euphoric image built up in the western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. Is regarded as the first Indian Company introducing Limca a leman drink complementary to it this has also introduced Cola Pep one which was withdrawn in the face of tough competition from Coca Cola. When Coca Cola bid a Farwell in 1977, Indian market was open for various new forward publishing different brands in the markets. Parle people introduced their Cola, Thums Up with a mighty saying Happy days are here again as if happy days went away with Coca Cola. Pure drinks of Delhi also without lasing much introduced pure drinks were producing and marketing Coca Cola earlier Campa Cola with Campa orange and MCampa lemon. Modern Bakeries entered the market with Double Cola Seven, Mohan Makings with Merry & Plkup and McDowell with Thrill, Rush and Sprint. This is Indian market where there was no competition and high voltage advertising was on each one was trying their

best to become number one company with A class product in the field of Soft Drink business. Now after a long gap government of India had given permission to Coca Cola, which joined with Parle to do business in India. They are trying their best to regain prestige which it had before. The much rival of Parle is Pepsi an American concern. It started business on the Indian soil just a few years ago. Now Pepsi is going all out to prove that they are the best. But now due to some factors competition among them has become stiffen. So in this way the important activities have increased.

SCOPE
1. The geographical scope of my study is confined to Patna. 2. The bulls eye is to have a cognizance of the level of satisfaction regarding the distribution network of PepsiCo product to the depot and retailer.

LIMITATIONS
Retailers are reluctant to provide the information regarding the sales volume and stock. Some retailers in were not co-operative in their approach. Retailers are not fully aware of the new schemes offered by the Company. Lack of time duration for the proper administration of research as time duration of 45 days was not sufficient for the research. Lack of financial resources as the researcher has to find his study by his own financial sources. Insufficient research experience. Indifferent behavior of the retailers exhibited at times.

CHAPTER 2
ORGANISATION PROFILE
HISTORY AND DEVELOPMENT VISION AND MISSION PRODUCT PORTFOLIO

1. INDUSTRY
1.1 HISTORY OF PEPSI-COLA INDUSTRY.
The Pepsi-Cola story itself begins with a drugstore in New Bern, North Carolina, and a pharmacist named Caleb Bradham. Bradham's aim was to create a fountain drink that was both delicious and healthful in aiding digestion and boosting energy. It would be free of the impurities found in many bottled health tonics, and it would contain none of the stronger narcotics often added to popular fountain drinks.

As most pharmacies in 1896, Bradham's drugstore housed soda fountain where the small-town clientele would meet to socialize. Bradham's establishment even featured a kind of primitive jukebox, which for a nickel would entertain the listener with the latest musical selections rendered by violin or piano or both It was at such convivial gatherings that Bradham would offer his latest concoction. Over time, one of his recipes became known as Brad's Drink. A member of the press declared, "It has sparkle and just enough acidity to make it pleasant." Soon its popularity would exceed the boundaries of New Bern. The cellar of Bradham's drugstore served as the original site of Pepsi-Cola syrup manufacturing. Electing to start his new business on a small, manageable scale, Bradham based his operation on familiar territory. Ingredients were hauled downstairs to cramped quarters where they were mixed together and then cooked in a large kettle. The syrup was subsequently poured into one-gallon jugs and fivegallon kegs to be shipped to customers. By 1902, the demand from surrounding drugstores increased so dramatically it dawned on Bradham that Pepsi-Cola was something special. On December 24, 1902, he filed incorporation papers with the state of North Carolina; in these, he indicated his plans for corporate branches in Virginia, Maryland, Pennsylvania, and New York. PepsiCo, Inc. is currently one

of the most successful consumer products company in the world with annual revenues exceeding $30 billion and has more than 480,000 employees. PepsiCo, Inc. began as a successor to a company incorporated in 1931, known as Loft Inc. Once known as PepsiCo Cola, the company expanded its business and adopted its current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger dramatically increased PepsiCo's market potential and set the foundation for the company's tremendous growth. PepsiCos products are recognized and are most respected all around the globe. Currently, PepsiCo divisions operate in three major US and international businesses: beverages, snack foods, and restaurants. In each of these businesses, PepsiCo has attained a leadership position as being the world leader in soft drink bottling g, the world largest snack chip producer, and the world largest franchised and company operated restaurant system. The corporations

increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices. PepsiCo's overall mission is to increase the value of our shareholders' investments through sales growth, investments and financial activities. PepsiCo believes their success depends upon the quality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity.

1.2 Pepsico headquarter

PepsiCo world headquarters is located in purchase, New York, approximately 45 minutes from New York City. Edward Durrell stone, one of Americas foremost architects, designed the seven-building headquarters complex. 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. Masters such as august Rodin, henrys Laurens, Henry Moore, Alexander Calder, Alberta Giacometti, Renaldo pomander and Claes Oldenburg focus the collection

of works on major twentieth century art, and features works. the gardens originally were designed by the world famous garden planner, Russell page, and have been extended by Franois goffinet1. the grounds are open to the public, and a visitor's booth is in operation during the spring and summer.1990 saw the coming of the multinational company Pepsi entering the Indian market. 11 years after the exit of coca cola. it had name, fame and edge of being one of the best in the game and it also offered stiff competition to parley and coke. Pepsi cola company founded by Cleb Badham in 1890 at north Crolina in USA now it is ked 86th (1998) in the world with the asset of around $25000 million, having its head quarter at Atlanta. Its CEO is roger enrico and Pepsi co. India holding chairman is Mr. Rajiv Baksi. Pepsi co. Indias is at gurgaon. Presently is operating in 196 countries. in India it has 34 bottling plant of them 8 are cobo and 26 are fobo of which one in Trity Drinks Pvt Ltd.

1.3- SOFT DRINK INDUSTRIES IN INDIA

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 consumer 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 house holds 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. It was introduced by PARLE during later part of 40s. Cola giant, Coca-Cola was the first foreign soft drink to be introduced in India in 1965, Coca-Cola make a very good beginning and dominated the whole scheme right from the word go. It (Coca-Cola) faced no competition at that time. COCA COLA entered India in the year 1993 In collaboration with PARLE INDIA LTD.

The marketing people did not even receive to publicize Coca-Cola for it sold first like probability not-cakes. This extraordinary success of soft drinks can be attributed to the following factors: Absence of contemporary competitive brand. Euphoric image built up in the Western countries proceeded the entry into Indian Market; and Indians are very found by nature of foreign goods, services etc. due to prolonged foreign rules. Parle Exports (P) Ltd, later in 1970 introduced Limca, Lemony Soft drinks. Before Limca introduce, they had tentatively introduced Cola, Pepino, which they had to soon withdraw in the face of battering confrontation with Coca-Cola. Three of four groups of Indians companies who had the required production capacity started their own brands of Cola, Lemon, Orange, but failed to achieve their goal on a national basis. India always has love and hate relationship with MNCs which gave a significant opportunities to soft drink industries in India when Coca-Cola decided to windup its operation in 1977 rather than bowing to the Indian government insisting on: Dilution of equity, as the government felt that lots of foreign currency was being wasted. Manufacturing of the top-secret concentration in India. Disclose of the chemical composition of the essence. This left a large vacuum in the popular soft drink market, and a vista was opened to any company with the requisite, technical, marketing and organizational skills. The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian Soft Drink. New soft drink in the form of Tetra pack entered the market among Frooti, Jump-In and Treetop were the prominent once. Till 1977 their equipped bottling plants and the distribution network a longing to be of no use. It took them

one year to develop new formula to survive and gradually came up with Campa, Lemon, Orange and Cola that order. However Parle, the pioneer in the soft drinks, blazed its way to national prominence with their product Thumps Up bearing the slogan Happy Days Are Here Again. This particular slogan helped to win over the loyalists or addicts to Coca-Cola, who was in the state of Cola Shock or Cola Depression. Soon the Indian Soft drink industry started at a phenomenal rate, and all Parle Products Gold Spot, Limca and Thumps Up became the brand leader in their own segment. In spite of all these, the drink market still has large gap, as claim by soft drink manufacturers. To fill these gaps there are many soft drinks concentrate and squashes flooded the market. The Indian soft markets basically offered three flavours i.e. Orange, Lemon and Cola.

PEPSI The Indian Experience

Previously there were two ads. Tags Yehi Hai Right Choice Baby, Nothing Official about It & Yeh Dil mange More, which immediately ring a Bell its to be a Pepsi. But today this ad. Tag has been changed and now its "Yeh hai Youngistaan Meri Jaan!" Pepsi is a short span of its operations in India has found a place in hearts and minds of the Indian Consumers. The success has primarily been due to the innovative and passionate Indian team which has been built over the years. Pepsi is a trendsetter managed and run by Indians, where important decisions are taken locally. Pepsi started its operations in India in 1989 and since Pepsi Co. has set up a fully integrated operation India viz. manufacturing, research and development, marketing, distribution and franchising covering fruit/vegetable processing, export, snack foods and beverages. In 1993 Pepsi Co. set up a hold company to further accelerate growth the future through new initiatives and joint ventures. Pepsi Co. fully committed to India and the national objective of development of technology and accelerating exports and employment. It has brought in over $500 million in

foreign exchange as well as technology, which is used for its global network by way of royalty, know how of dividends. Pepsi Co. has a turnover $25 billion, half of which comes from beverages and the other half from the snacks foods divisions. The beverages arm of the Pepsi Co. is Pepsi Cola Company and the snacks foods company is called Frito Lay Inc. The year 1998 is the centennial year of Pepsi.

Beverages:
Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur, Punjab, with an investment of $ 5 million the state of the art Plant houses a world class laboratory where soft drinks from all over the world are tested. This concentrate plant supplies Pepsi, 7Up, Team, Miranda, Orange, Apple & Lemon flavors to all the Pepsi Bottling plant in South Asia. Pepsi has 40 Bottling plant in India, out of which 16 are company owned and 24 are owned by Indian franchisees, Pepsi Co. has invested heavily on up gradation of these bottling plants and has put 5 green fields projects in backward areas such as Jainpur and Bazpur in U.P. Bharuch in Gujarat, Sonarpur in West Bengal and Naclamangala in Karnataka. New project are coming up in Maharastra and Tamilnadu. In addition to the Companys own Bottling Operations (COBO), Pepsi has 24 Franchisee Owned Bottling Units in India. These franchisee manufacturers are also planning to install substantial additional capacities. In last two years Pepsi Co.s franchisees have put new bottling plant at Jaipur, Bhopal, Hajipur (Bihar), Guntur (A.P) and Gawahati (Assam) with further investments. Pepsi Co.s franchisees are amongst the best in the Pepsi world and the 1998 two Indian Franchisees were chosen for being the Bottler of the Year amongst all International Bottlers.

Juices:
Pepsi Co. plans to launch juices in a bog way in India, there by helping the farmers in fruit procurement. Pepsi Co. Agriculture Scientists has undertaken research on Mango, Guava and Oranges and these fruits would be the priority area for the juice launch in India. Presently Pepsi has one juice brands Slice, which are presently mango juice brands. Pepsi Co. also has bottling lines in most of the plants.

Developing Sports:
Pepsi today is one of the main sponsors related activities in India and has counted to promote upcoming new players Cricket, Hockey and Football. In Mohali, Pepsi has developed a Pepsi Cricket Academy, which would develop over 500 Young Cricket enthusiasts in next five years. Similarly Pepsi cricket coaching camps and clinics are held to coach young boys in North & South.

Community Relation:
Most of the bottling plants are located in backward areas, thereby giving huge employment opportunities in these areas. Pepsi as a responsible company undertakes social projects in and around the bottling plants. These include supports to the education centers, sponsors, inoculation camps, providing free health checkup, initiating sanitation, drives, promoting literacy drives and helping village to put up bus shelter etc.

Revenue Generation:
It is estimated that Pepsi Co. and its franchisees generates over Rs. 500 Crores (in 1997) to the exchequer by the collection of excise duty and sales tax. Marketing mix followed by Pepsi The tools of marketing mix are combined in such a manner that they give maximum mileage to the product from the factory to the consumers hand.

 Product Price Place Promotion Position Probing Perpetual Mapping The soft drink being a FMCG has a wider and scattered market. Thus to enable concentrated effort of marketing activities in different scattered market, for effectively setting the entire market is broken down into the following segments. Route market Home market At work market

Route market:
Outlet in this market caters to those people who are engaged in shopping, eating outgoing to and from work, in amusement center etc.

Home market:
Outlets in this market cater to people buying predominantly for home consumption, either by case or loose bottles.

At work markets:
Outlets in this market cater to people working in offices, factories etc. an attempt is always made to make soft drinks readily and conveniently available all day long while people are actively working.

1.4- MARKET GROWTH RATE AND DEMAND TREND

The Soft Drink industry was estimated at 6.5bn bottles in FY05. Volumes have been growing at 14-15% pa in the last two years. Per capita consumption in India is among the lowest in the World at 6 bottles as against 17 in Pakistan and 21 in China and Sri Lanka. Growth has slowed down in the current year to 8%, despite the low level of per capita consumption and the industry is expected to register sales of 7.5bn bottles in FY07. The demand for soft drinks is highly price sensitive. A study conducted by NCAER has shown that a 10% increase in soft drink prices, leads to a demand reduction of over 17%. Given the cutthroat competition, price changes by any one player induce similar price adjustment by other players too. Sales growth of the two large players have been driven by a high level of promotions and price wars and increasing investments being made in expansion of the distribution infrastructure. Both the leading players are yet to make profits. The industry has received the largest amount of Foreign Direct Investment in the country of almost Rs4.7bn (US$1bn). The industry employs more than 125,000 people directly and indirectly. Additional investment of rs20bn in expected over the next three years, with a potential to create additional 95,000 jobs directly over the periods of marketing.

Our Mission and Vision

At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to do, but the right thing to do for our business.

Our 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 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.

Our 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.

PRODUCT PORTFOLIO
The products manufactured by Lumbini beverage Pvt. Ltd, are very limited in range as it is not independent to diversify its products when required. This is because it is a unit of PEPSI FOODS LIMITED, which supplies the concentrates for different brands of soft drink. These are: PEPSI (cola flavour) MIRINDA (orange, apple & lemon flavour) 7 UP (Clean lemon flavour) SLICE (Mango flavour, having concentration of ALPHANSO,TOTAPURI Mango 30:70) MOUNTAIN DEW TROPICANA(JUICE) The chief consumers are young masses. Beside direct consumer, hoteliers, restaurants owners and various other soft drinks peddlers also use them. Thus it can be said that these are the product for mass consumption.

PRODUCT MANUFACTURED
The product manufactured by Lumbini Beverages Pvt. Ltd. are very limited ranges as it is not independent to diversity its products. It is a unit of Pepsi food Pvt. Ltd. which supplies concentrates for drinks. They are:Products Pepsi Mirinda Mirinda(Org) Mirinda(lmn) 7 Up Mountain Dew Slice Lehar soda Pet Pet Can Aquafina (Mineral Water) Quantity 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml Color Brunt sugar Sun-set Tetrazine Tetrazine Colorless Colorless Flavour Cola Orange Lime Mango Lemon Lemon

300 ml 300 ml 500ml,6ooml 1lt,2 lt. 250ml,330 ml 1 lt.

Sunset Tetrazine Brunt sugar Brunt sugar Brunt sugar Colorless

Mango Lemon Cola Cola Cola White

CONSUMERS The main consumers of these products naturally are youth. Besides the direct consumer it is also used for the some purpose of providing it to the mass by hoteliers, restaurant owners and various other soft drink peddlers. These products are the choice of the new generation. Thus it can be said that it is a product of mass consumption.

DISTRIBUTION CHANNEL AND MARKETING STRATEGY

COBO(Company Owned business Operation ) The company has total control of its decision and its implementation but it has to invest own money. The COBO structure is as under. has 17 COBO Plants PepsiCo food limited and Pepsi India holding (Production & Plant) Pepsi India Marketing Co. Marketing sales and Distribution. FOBO (Franchise Owned Business Operation): India has 32 FOBO Plants: The company can hold its ideas to the franchise who may be reluctant to see company. Point of view, it greater exporter.

NORTHERN LEVEL
Pepsi Company has divided North India into three regions-Western. Central and Eastern regions are known as the COBO (Company owned bottling Operation). The Western region comprises of the FOBO. The FOBO bottling operation Comprises of those in:1.Barabani - (UP) 2.Barelly - (UP) 3.Varanasi - (UP) 4.Agra (UP)

5.Panagarh, Burdwan - (W.B) 6.Ferozabad - (UP) 7.Panagarh,Calcutta - (W.B) 8.Hajipur, Vaishali - (Bihar), Lumbini Beverges Pvt. Ltd.

DISTRIBUTION CHANNEL OF LUMBINI BEVERAGE PVT. LTD

To make its products available at the right place, at te right time in the market, the sales department of the company plays major attentation 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

DIPO

RETAILER

CONSUMER

MARKETING ``STRATEGY
Marketing strategy is complete and unbeatable plan designed specifically for attaining the marketing objective of the firm. The markets objectives indicates, what the firm wants to achieves, the marketing strategy provides for achieving them. The marketing strategy is not able idea. It is a well outlined plan, and there are different ways to formulating it. Basically formulating of marketing strategy consists of two main steps. Selecting a target market. Assembling the Marketing mix, Actually, the target marketing and marketing mix together constitute the marketing strategy of the firm. When the Pepsi Food Company entered in the Indian soft drink market, the market was already prevailed by coke and previously it was Parle, Pepsi tried to establish in India with a unique marketing policy. Pepsi took into consideration of

youth segment target market. Through the advertisement of Pepsi highlight the style of living of young generation with different walk of life. Pepsi brought in its advertisement different stalwarts personality from fields like young cine stars. Sports stars and famous personality from fields. It has attracted the young organized the national and international sports programmed to attract the young generation.

CHAPTER 3

ORGANISATION STRUCTURE
HISTORY AND ORGANISATIONAL STRUCTURE OF LUMBINI BEVERAGE PVT. LTD. HAZIPUR

HISTORY OF LUMBINI BEVERAGES PVT. LTD. HAJIPUR

History of Lumbini Beverages Pvt. Ltd. Steel City beverages Pvt. Ltd. is situated at Adityapur Kandra Road in Jamshedpur. Rushabh Marketing Pvt. Ltd. is the marketing division of Steel City beverages. Steel City beverages Pvt. Ltd. is a mother unit and its whole marketing activities are done through Rushabh Marketing Pvt. Ltd. Steel City beverages is one of the Pepsi foods Bottling plants in the country and one of the three in Eastern India. The other two Calcutta and Guwahati. But from 01-041997 Pepsi Foods Ltd. India determines to open another bottling plant which is situated at Hajipur namely Lumbini Beverages Pvt. Ltd. It is only for North Bihar. Steel City beverages Pvt. Ltd. was established by Late Mr. Dharam Chand Kamani in the month of June 1967. The machineries of its main plant were imported in 1968 and production started in March 1969. Before the establishment of Steel City beverages Pvt. Ltd. Coca Cola was not much popular among people of Bihar state as pure soft drink. Because at that time the bottles of Coca Cola was supplied by the outsiders who were unable to make Coca Cola popular in Bihar. So after considering the needs and desires of people Mr. Dharma Chand Kamani brought in Bihar. With this effort Coca Cola become popular among the people of Bihar. But in 1977 due to the sudden change I the policies of the Government the import license for the concentrate of Coca Cola was stopped. So Steel City beverages Pvt. Ltd. had to walk over to Indian Concentrate Companies. They were modem food industries supplied concentrate of double seven and non ice cream soda. In 1983 the company introduced a cola drink THRILL of Mc-Dowell & Co. Ltd. in the

place of Double seven and triangular and in the very next year two soft drink RUSH an orange flavoured and SPRINT as lemon flavoured of Mc-Dowell & Co. Ltd were introduced. Before some months Ananda Marketing Pvt. Ltd. was the marketing division of Lumbini Beverages Pvt. Ltd. But at this time, Lumbini Beverages Pvt. Ltd. is doing marketing with its own name. Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made tremendous move towards the introduction and development of soft drinks industries on the whole, and North Bihar in particular. It has made production of perfect hygiene and standard Soft Drink as main objective.

ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD.

An ideal organizational structure facilities management and the operation of the enterprise and it help the organization in achieving its goal. In a simple term in various parts or component are interrelated or interconnected and this way it is the established pattern or relationship among various function of the organization in the established manner. The managing director holds the top position. At present, the managing director of Lumbini Beverages Pvt. Ltd. is Mr. Charan Khilani. But the overall policies regarding management decisions and all executives function or performance look after by the day to day decision and general administration as well as management. The MD has given the power of attorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who is well advised by the MD. The director Mr. Ravi Khilani looks after all functional departments that sales production, account, personnel and purchase. Though the manager all the functional departments has specially designated as head of personnel department. Every department has to report directly to the managing director and is responsible to his only for working in spite of this all departments is under the control of the director Mr. Ravi Khilani. Because he is the Chief Executive of the company cited earlier. The overall organizational structure can be shown as:

OVERALL ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD., HAJIPUR

BOARD OF DIRECTOR

MANAGING DIRECTOR

CEO

FINANCE MANAGER

PLANT MANAGER

P.A.M.

H.R. MANAGER

A/C ASSISTANT

SHIFT ENGINEER

SHIPPING COORDINATOR H.R. EXECUTIVE

A/C CLERK ASSISTANT

WORKER / OPERATOR

H.R. CLERK ASSIS.

HOS

T.D.M.

M.E.M.

M.D.M.

Q.C.

A.D.C.

SENIOR TECHNICIAN

M.D.C.EXECUTIV

C.E.

TECHNICIAN

M.E.

The marketing manager is in charge of all marketing activities i.e. sales promotion, publicity and advertisement, marketing study and shipping. But the main function of the marketing is to exercise the control over the channel of distribution. The marketing manager is assisted by sales executives, city sales executives and rural sales executives and sales executive of shipping department as follows:-

DIRECTOR

MANAGING DIRECTOR

HEAD OF SALES

T.D.M A.S.M Management Trainee

CITY SALES EXECUTIVES

SALES EXECUTIVES

SALES SUPERVISOR

CHAPTER 4
COMPETITORS ANALYSIS

Competitors of PepsiCo in Bihar

1. COCO-COLA

THE MAIN COMPETITORS..COCO-COLA

HISTORY OF COMPETITION

This paper will detail the historical conflict between PepsiCo and Coca Cola, and the evolution of soft-drinks industry. The paper will also attempt to answer numerous questions, including - why concentrate producers yielded higher returns during 1950s, 1960s, and early 1970s; did the national launch of Pepsi challenge in 1977 change the nature of competition in the industry, how and did it harm or benefit Pepsi? Why Coca-Cola gained market share back from Pepsi and became more profitable in 1990s, and why Coca-Cola holds such a dominant position over Pepsi in the international marketplace. The flagship product of The Coca-Cola Company Coca-Cola was formulated in 1886 by a pharmacist named John Pemberton. The company expanded rapidly through independent bottling franchises, numbering 370 in 1910. Pepsi Cola was invented in 1893 by Caleb Bradham, also a pharmacist, and adopted Coca-Colas expansion methods. By 1910, Pepsi had a network of 270 franchised bottlers. Unlike Coca-Cola, PepsiCo struggled and declared bankruptcy twice - once in 1923, and again in 1932. The company rebounded in the midst of Great Depression by lowering price for its 12-ounce bottle to a nickel, compared to a nickel for 6.5 ounce bottle offered by Coca-Cola. As PepsiCo began gaining market share, Coca-Cola filed suit again PepsiCo claiming trademark infringement in 1938. After numerous lawsuits and counter-lawsuits, the case was ruled in favor of Pepsi in 1941. By 1940s, Pepsi surpassed Royal Crown and Dr Pepper, and only trailed Coca-Cola in terms of market share. With the appointment of Alfred Steele, a former Coca-Cola executive in 1950, Pepsi adopted aggressive tactics against Coca-Cola in terms of gaining market share. The company targeted family consumption by introducing new 26ounce bottles, positioned itself as a product for youth or young at heart with catchy slogans and intense commercials, and persuaded its bottlers to modernize their plants, and improve store delivery services. The new strategies paid off, and Pepsi narrowed Cokes lead by 2-to-1 margin. Pepsi raised stakes further in 1972 by introducing the Pepsi Challenge. The company ran a marketing campaign in Dallas, Texas where people participated in blind taste tests. The marketing campaign was successful, and

Pepsi used it to show that consumers preferred Pepsi over Coca-Cola. The marketing campaign led to sales rise in Dallas, and Pepsi eventually rolled out the campaign nationwide. The Pepsi Challenge eventually led Pepsi to pass Coke in food start sales for the first time. Rapidly declining market share led Coca-Cola to introduce Diet Coke in 1982. The new brand became a phenomenal success and became the third largest selling soft drink in US. Coca-Cola attempted to imitate the taste of Pepsi, and introduced a new flagship product abandoning its 99-year old formula. The action led to wide scale consumer backlash, forcing the company to reintroduce its old flagship cola drink as Coke Classic. The Coke Classic eventually led to sales increase, and became the flagship product of the company. To expand further, both companies started offering products besides their flagship cola drinks in 1960s, essentially abandoning their one product strategy. Coca-Cola introduced Fanta, Sprite, and low-calorie Tab. PepsiCo followed suit by offering Teem, Mountain Dew, and Diet Pepsi. Both companies also introduced 12-ounce metal cans, and further diversified into non-soft drink industries. In 1960s, Coca-Cola felt that the domestic demand for soft-drinks saturated, and thus focused on overseas market instead. Pepsi on the other hand, focused aggressively on the domestic market, and doubled its market shared between 1950 and 1970. In 1980s, Coca-Cola and PepsiCo attempted to reorganize their fragmented and independent franchised bottlers. Both companies attempted to streamline their bottlers by buying up loss-making or inefficient bottlers and reselling them to profitable franchisors. Eventually, all bottling franchisees were merged and new bottling companies were spun-off. In 1986, Coca Cola established CCE, and PepsiCo established Pepsi Bottling Group. Both of the new companies handled majority of their respective parent companies bottling requirements. During 1990s, Coca Cola became increasingly profitable, and gained significant market share at the expense of PepsiCo. Its flagship product controlled a steady market share of 20% while PepsiCo declined from 17.3% in 1990 to 14.5% in 1998. Coca-Cola had a global market share of 51% compared to Pepsis 21%. As consumption in US declined from 6% in 1980s to 3% in 1990s, Coca-Cola was able to offset lower domestic sales with higher revenues from abroad. As PepsiCo concentrated on the domestic market, its margins declined due to changing trend within the US economy. Also Coca-Cola entered foreign markets with large and experience bottlers in their respective companies and held a minority stake, and concentrated on streamlining local bottling networks. Pepsi on the

other hand entered foreign markets through joint ventures, and many a times shared only 50% revenue on sales T h e Coca-Cola Company

The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded in 1886, our Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. Our corporate headquarters are in Atlanta, with local operations in over 200 countries around the world. The product range of COCA-COLA Consists of: COLA COKE, ORANGE LIME FANTA LIMCA LIME SPRITE, SPRITE MANGO M.WATER MAAZA KINLEY

THUMS UPP 1. Coke

200ml, 300ml, 500ml, 1.5lt, 2l, 330ml(can) 2. Thumps up 200ml, 300ml, 500ml, 1.5lt, 2l, 330ml(can) 3. Limca 200ml, 300ml, 500ml, 1.5lt, 330ml(can) 4. Fanta 200ml, 300ml, 500ml, 1.5lt, 330ml(can) 5. Sprite 200ml, 300ml, 500ml, 1.5lt, 2l, 330ml(can) 6. Maaza 300ml, 500ml, 1lt 7. Kinley 500ml

CHAPTER 5

RESEARCH METHODOLOGY
RESEARCH DESIGN SOURCES OF DATA DATA COLLECTION TOOLS SAMPLING DESIGN

Research Design-The research design is descriptive as it intends to figure

out the existing market presence of Pepsi as against its competitors .

Sample- Retailers of Patna being visited by PSI. Sample Size- 80 outlets at different locality of Patna Station.
The research plan that was designed to enable me in collecting the required information is shown below. 1. 2. 3. Data source: Secondary data, Primary data Research Instruments: Questionnaire Contact Method: Direct Interaction

Data Source:
SECONDARY DATA
Secondary data consists of information that already exists somewhere, having been collected for another purpose. The secondary data source that was utilized by me in the project report were as follows. 1.Internal Sources: 2.External Sources;

PRIMARY SOURCE
Direct interaction with the retailers In Patna. Data collection tool- Questionnaire Sampling design- Retailers dealing with Beverage product.

CHAPTER 6

DATA ANALYSIS AND INTERPRETATION

DATA INTERPRETATION
SAMPLE SIZE LOCATION 80 RETAILERS Patna station

DATA INTERPRETATION 1. Availability of PepsiCo

CO. PEPSICO NO. OF OUTLETS(80) 42 PERCENTAGE 55%

AVAILABILITY OF PEPSI

45% 55% YES NO

Analysis the above graph and table

From the above graph and table it is clear that the availability of PepsiCo is 55% . 2. Availability of Coco-Cola
CO. COCO-COLA NO. OF OUTLETS(80) 72 PERCENTAGE 90%

AVAILABILITY OF COCO-COLA
10%

YES NO 90%

Analysis the above graph and table

From the above graph and table it is clear that the availability of its competitor Coco-Cola is 90%.

3. Availability of both Company products in total outlet.

CO. PEPSICO&COCO-COLA NO. OF OUTLETS(80) 35 PERCENTAGE 44%

AVAILABILITY OF BOTH CO'S.

46%

44% YES NO

Analysis the above graph and table

From the above graph and table it is clear that the together availability of both company is 44%(Approx) in total outlets in this area.

4. Availability of PepsiCo Brand.

CO PEPSICO Average 3 Percentage 46%

BRAND AVAILABILITY OF PEPSICO

46% 54% YES NO

Brand consideration for PCI- Pepsi, 7up, M Dew, Slice, Mirinda

Analysis the above graph and table

From the above graph and table it is clear that the Brand availability of PepsiCo is 46%(Approx).

5. Availability of Competitor Brand.

CO COCO-COLA Average 5 Percentage 83%

BRAND AVAILABILITY OF COCO-COLA

17% YES NO 83%

Brand consideration for coke- Coco-cola, Thumps up, Limca, Mazza, Fanta, Sprite
Analysis the above graph and table

From the above graph and table it is clear that the Brand availability of CocoCola is 83%(Approx).

6. Availability of Brand Channel wise

Channel Grossery Eatry Convenience
6 5.5 5 4 3 2.4 2 1 0 Grossery Eatry Convenience 4.16 3.28 2.86 PCI COKE 4.89

No of Outlets 10 32 37

Brands(Average) PCI 2.40 3.28 2.86 COKE 5.5 4.16 4.89

Analysis the above graph and table

From the above graph and table it is clear that the average Brand availability channel wise of PepsiCo is( G-2, E-,C-3) and Coco-Cola is (G-5, E-4, C-5). 7. Availability of SKUS & Chilled Stocks
CO PEPSICO Average(SKUS) 3 Percentage 31%

AVAILABILITY OF PEPSICO SKU'S

31% YES NO 69%

Analysis the above graph and table

From the above graph and table it is clear that the availability of SKUS and Chilled Stocks PepsiCo is 31%(Approx).

8. Availability of SKUS & Chilled Stocks(its competitors)

CO COCO-COLA Average(SKUS) 5 Percentage 86%

AVAILABILITY OF COCO-COLA SKU'S

14% YES NO 86%

Analysis the above graph and table

From the above graph and table it is clear that the individual availability of SKUS and Chilled Stocksof Coco-Cola is 86%(Approx). 9. Availability of SKUS & Chilled Stocks Channel Wise
Channel Grossery Eatry Convenience
6 5.5 5 4 3 2 1 0 Grossery Eatry Convenience 2.3 2.5 2.7 PCI COKE 5.1 4.89

No of Outlets 10 32 37

SKUS(Average) PCI 2.3 2.5 2.7 COKE 5.5 5.1 5.4

Analysis the above graph and table

From the above graph and table it is clear that the average availability channel wise of PepsiCo is(G-2,E-3, C-3) and Coco-Cola is(G-6, E5, C-6).

10. Percentage of service of PepsiCo.

SERVICE OF PEPSICO

27% YES NO 73%

Analysis the above graph and table

From the above graph and table it is clear that the service of PepsiCo is 27% (Approx)and in this area. 11. Percentage of service of Coco-Cola.

SERVICE OF COCO-COLA
9% YES NO 91%

Analysis the above graph and table

From the above graph and table it is clear that the service of CoCO-COLA is 91% (Approx) in this area.

STRENGTHS

Brand name PEPSICO PEPSICO has well built image of excellence and innovation Range of product. Loyalty of customers. Quality of the product LUMBINI drinks are franchisee owned Bottle Operation (FOBO) of worlds most famous soft drinks giant PepsiCo.

LUMBINI drinks uses state of the art and fully automatic machines and technology for the product and bottling of soft drinks.

WEAKNESSES
o In adequate information to the retailers about companys sale offers. o Distribution channel is not efficient. o Delay in delivery of products causes revenue loss.

o The present supply is not sufficient to fulfill the demand, which may be trapped

OPPORTUNITIES
LBPL makes the buying process more convenient of efficient (It provides the Pepsi products at required places i.e. direct to distributors and to retailers through distributors). Market growth. Known brand. It takes return the leakage, burst bottles etc. The executive of company meet the need for more information and advice to distributer/retailer/customer.

THREATS
COCO-COLA strong presence in this segment. Linc co. coming with new range of pen and pencil. COCO-COLA has better marketing strategy and distribution channel. Coca-cola is now spending more and more to boost up the sale, so Lumbini drinks should also have to go a head and think about it.

CHAPTER 7

FINDINGS

FINDINGS
1. After visiting 80 outlets in my area I found that the availability of pepsi is 55% and availability of coco-cola is 91%. 2. Average availability of brands of PepsiCo is 3in5 and Coco-Cola is 5 in6 in this area. 3. Majority of the retailers are selling coco-cola products. 4. Penetration of PepsiCo products should be increased. Specially in sub urban areas. 5. The service by PepsiCo to the outlets are satisfactory in major areas but not in the entered area. 6. Retailers order every brands but he dont get on time. 7. There is need of some replacement of chiller in this area. 8. Coca-cola has covered more market share because they provide better supply, and easily provided refrigerator to the retailer. 9. When they need pet bottles (7-up, Miranda) the distributor has not provided at that time.
10. Some outlets were complaining about the racks and freeze which is not given

to them by distributor but some place there is good response. So more or less there is a good response of retailer towards Pepsi distribution.

CHAPTER 8

RECOMMENDATIONS

RECOMMENDATIONS
First of all company will provide all its dealers and retailers to all sort of promotion equipment such as glow sign board, banner, rack, freeze, etc. in time so that they increase their sales which is benefited both retailer as well as company. The distribution channels need to be improving so that retailer/dealer will get soft drinks at time when they need. More improvement is required in the distribution network in the outskirt and in the remote areas, because in the peak seasons like summer the small dealers are taking goods twice or thrice and in between if the distributors could not supply them, the competitors will get the opportunities to supply the goods. There should be more focus on 100% avaibility so that Pepsi dont lose sales & market share. All mixed outlets which stock multiple products should be transferred to exclusive Pepsi outlets Supply of goods should be regular at all the routes. Dont miss any outlets in any area. Always have a good rapport with the retailers. Frequency of visit should be increase. The company should start survey time to time to know the grievances of retailer as well as consumers.

 Some times absence of stocks annoys retailer and consumers, so company should keep a watch to the availability of brand. Todays every type of channel want to keep soft-drink so if we provide them. Obviously increase market share of PepsiCo. Check whether the outlet require any signage. The company should cover those market which are not covered at yet to increase the market share There must be proper maintenance of refrigerator so that retailer shall chill drinks easily No. of vehicles for delivery of goods should be increased in no for proper catering in the entire area of Patna effectively and efficiently.

REFLECTIONS
The survey was conducted in Patna with sole objective to understand the market, market effectiveness distribution network and competitors activity for PepsiCo products and providing the data interpreted to PepsiCo. I extend my thanks to all retailers who extended their support in providing me the extensive data without which the report had not been revealing. I also thank the superior of the organization who extended their time to time guidelines and encouragement and helped me to conduct the survey in a positive note. The data thus collected shall remain a functional guideline to increase our market penetration, product positioning, pricing policy consideration and service enhancement. PepsiCo is India produces healthy financial rewards to investors as it provides opportunities for growth and enrichment to employees, business partners and the communities in which it operate. I once again thank Lumbini beverage Pvt. Ltd for providing me this opportunity to conduct a survey which I could do with best of my enthusiasm and ability.

 APPENDIX
DAILY CALL SHEET QUESTIONNAIRE BIBLIOGRAPHY

DAILY CALL SHEET

ROUTEDAYPEPSICO OF INDIA
DAILY CALLSHEET AREADAYNO OF PACKST

DATE-

DATENO OF CHANNEL CHILLER BRANDS

No of sku
PCI COKE

CHILLING CHILLED CAPACITY STOCK

INFRASTRUCTURE

S. OUTLET NO NAME AREA G/E/C/M 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TOTAL AVERAGE PERCENTAGE

PCI

PCI

PCI

PCI

SERVICE

PCI

QUESTIONNAIRE
Outlet name : Location : Date :
1. Is the service of Pepsi available in your outlet? (a)Yes (b) No 2. Which type of outlet? (a)Grocery (b) Convenience (c) Eatery (D) Modern Trade 3. Which brand of soft drinks you deal in? (a)Pepsi (b) Coco-Cola Both (d) Others 4.How many skus are available in your outlet? (a)1 (b) 2 (c) 3 (d) 4 (e) 5

phone no:

(f) 6 (g) 7 (h) 8

5. Which type of PepsiCo brands available you have? (a)Pepsi (b) 7up (c) Slice (d) Mirinda (e) M Dew (f) Nimbus 6. Are you satisfied with the supply of PepsiCo? (a) Yes (b) No 7. Which brand of cola provides you better facility? (a) Pepsi (b) Coco-Cola (c) Both 8. How many SKUs you chilled? (a) 2 (b) 3 (c) 4 (d) 5 9. Which companys chiller you have? (a)Pepsi (b) Coco-Cola Own (d) Both 10. What is the capacity of your chiller? (a) 110 (b) 280 (c) 320 (d) 400 (e) 600 (f) 1200

(e) 6

(f) 7 (g) 8

11. When a customer comes to your shop which brand of soft drinks does he/she demands? (Rank them) (a) Pepsi (b) Coca Cola (c) Others 12. What is the position delivery of Pepsi products? (a) Very Good (b) Good (c) Bad (d) Worse

13. Which company Visi-Cooler do you have? (a) Pepsi (b) Coca Cola (c) Both (d) Own 14. Which company gives better service? (a) PepsiCo (b) Coco-Cola 15. Please give any suggestion for improvement regarding distribution, brand, bottling etc. .. ...........

BIBLIOGRAPHY
A. BOOKS: 1. PHILIP KOTLER MARKETING MANAGEMENT, ANALYSIS, PLANNING AND CONTROL (8th EDITION PUBLICATION PRENTICE HALL, PUBLISHED- 1994)

2. DENNIS ADCOCK MARKETING PRINCIPALES & PRACTICE (SECOND EDITION, PUBLISHED 1995, PITAM PUBLICATION) 3. THERESE.L.BAKER DOING SOCIAL RESEARCH (2nd EDITION, PUBLISHED 1995, MCGRAW HILL INTERNATIONAL EDITIONS) 4. C.R.Kothari, 2007 "Research Methodology", New Age International Publishers.

B. MAGAZINES: 1. BUSINEES WORLD 2. BUSINESS TODAY

C. JOURNALS: 1. TIMES OF INDIA 2. BUSINESS STANDARDS. D. WEBSITE: 1. www.google.com 2. www.pepsico.com