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PROJECT REPORT

ON

Market research

OF

Pepsi in jamshedpur

(FRANCHISEE OF PEPSICO INDIA LIMITED)

A REPORT SUBMITTED IN FULLFILMENT OF THE

REQUIREMENTS FOR

MASTER IN BUSINESS ADMINISTRATION

COMPANY GUIDE- MR. Subroto Chakarwarty

DURATION 2nd MAY TO 30TH JUNE

SUBMITTED BY:-

DEEPAK KUMAR

Institute for Technology and Management

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Warangal institute of management,Warangal

(A unit of ITM group of institutions)

PREFACE

Practical training is considered to be an essential part of all the professional institutions

and those who are aspiring for master of business administration, on job training assumes

even more significances.

As an aspect of management education which is receiving increased attention from

institutes as well as from recruiters on job training is imparted to the students to

acclimatize the student with the actual environment of business management.

It is also a widely accepted theory that this aspect of management education widens ones

thinking about the different concepts of management philosophy, difference between

different concepts and ground realities.

This project has been done in the field of marketing and project work has been done

under the supervision of S.M.V Beverages Pvt. Ltd. which the franchise is owned

bottling plant of PepsiCo India limited. The bottling plant is located at Adityapur

industrial area (AIDA), Adityapur.

I have done my training in Jamshedpur under the guidance of the executives of S.M.V

Beverages Pvt. Ltd. The report gives a true picture of the practical activities done by me

within the jurisdiction of the area assigned to me.

The study area was restricted to Sakchi, a part of Jamshedpur. Hence the results of the

study are applicable to Sakchi in particular and Jamshedpur in general.

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Ref. No. ..Date ..

CERTIFICATE

This is to certify that Mr. Deepak kumar has undergone 60

days summer training from MARICO Ltd., New Delhi from 01-05-2010

to 30-06-2010. The topic of his project was Market reaserch of

pepsi in Jamshedpur.

This is to certify further that the present project has not been

undertaken by anyone else for similar award in any other institute or

university to the best of my knowledge.

(Prof.

Muzahid Ali)

AcademicGuide

Session2009-11

Date :

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DECLARATION

I Deepak kumar hereby declare that my internship training reportentitled PEPSICO STRATEGY & MARKET SHARE submitted

to S.M.V. Beverages Pvt. Ltd, Jamshedpur for the award of thecertificate of the training program and to ITM Business School,Warangal for the award of the degree Post Graduation Diploma inManagement. This report has not been submitted to any otherorganization, either in part or in full for any purpose.

Name:

Signature:

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ACKOWLEDGEMENTS

Before I get into the thick of the things I would like to add a few heartfelt words for the

people who were part of this project in numerous ways.people who gave unending

support right from the stage the project was started, appreciated and encouraged when

being depressed.

In this context I would like to express my gratitude towards my parents and family

members who have constantly supported and played a pivotal role in shaping my career.

I take this opportunity to express my gratitude to Mr. P.S. Kumar (Director), Mr. Subroto

chakarwarty (T.D.M) and Mr. S.K. Bahl (Manager, HR) of S.M.V. Beverages who have

given me the opportunity to do the project in their esteemed organization.

I would also like to thank Mr. shukla (A.D.C.) of SMV Beverages without whose

support this project couldnt have been in the form in which it is now. I owe more than

what I can mention.mostly for teaching me to see the silver lining in every dark cloud.

I also owe my regards to Mr. Harmeet Singh(CE) and Adarsh agency (Distributor) for

their co-operation in the successful completion of the project.

This has been one long project and naturally many people get associated with it. Any

bouquet for the merit in this book should go to their door. I would like to thank the staffs

and officials of SMV Beverages for their co-operation in providing us with all the

information, which were required by us.

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I owe my sincere gratitude towards my faculty guide Prof. MR MUZAHID ALI and

Mr. T.D RAO (DIRECTOR) ofITM,WARANGAL for extending the support towards

the completion of the project.

And finally I would like to thank my friends for their unending support.

CONTANT

PART-1 PAGE NO

Executive Summary 9

Key Areas 10

Pepsi Co. 11

Soft Drinks Industry In India 12

PEPSI Co. in India 14

Origin of Soft drink in Jamshedpur 18

SMV Beverage Ltd. 19

One day in plant 20

Pepsi Co packaging process 24

Organisation chart of the company 26

Organisation chart of Hydrabad marketing 27

Every dealer survey (EDS) 28

PLAN - O - GRAM 30

Distribution Channel 33

SWOT Analysis 37

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PART 2

Introduction 41

Description of field 42

Research Methodology 44

Market Research 48

Marketing Activity 53

ANALYSIS PART

Analysis of market research 67

Analysis of Pepsi product in Jamshedpur market 75

Findings 83

Sugessitions 84

Limitations 85

Conclusion 86

Bibliography 88

Questionnaire 89

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PART-1

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EXECUTIVE SUMMARY

PepsiCo organization initiated this project to assess the market

potentiality of Pepsi in the present market. The main motive of this

project is to identify the potentiality of the Pepsi and their other

product those they are producing.

The project methodology involved carrying out the preliminary

research to gain insight into the present market sub segment,

current trends, growth, players and potential. Analyzing the

requirement and designing questionnaire. Taking interviews,

conducting personal interviews of different type of demographic

factors under like age, income, status,. Collating & analyzing data andidentifying leads that qualifying for an offering and formulating

recommendation for S.M.V. Beverage Jamshedpur.

In the findings researchers got that Pepsi company is one of the

best soft drink company , because it maintain the quality, taste and

also the Company is maintain good relationship with retailers and they

are also distributing their product to their retailers when they want and

the Company also provide them in time.

Theory is important, because it enhances our understanding of business phenomena

and helps managers to think about what they should do. Summer training or internship

training program provides opportunities to apply this theory into the real business

practice.

In the present scenario of competitive marketing, every business institution requiresto prepare strategies for efficiently utilizing their available resources and environmentalopportunities. At this stage of my learning process I also feel needs for knowing differentbusiness strategies that a business organization follows. In this training period I got

opportunities to study on some marketing strategies of PepsiCo. And in this report I amgoing to explain some of those strategies which I had applied in practical during mysummer training program.

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KEY AREAS

The key area of my summer training was PEPSICO STRATEGY OFMARKET SHARE.The company had divided his retail outlets on the basis of area wise

and character wise. Each of the division is having mainly three types of

outlets.

AREA WISE : - The area of my summer training was

Jamshedpur and according to the company the whole training area

was divided into three part.INNER CIRCLE : - These are the main selling point of a company

or heart of a city. In inner circle we mainly consider those selling point

or retailers shops which come under the main market area.

OUTER CIRCLE: - These areas are adjacent to the main market

area, which is a mixture of residential areas and market areas. In these

areas we mainly talk about those retailers shops, which are placed in

the residential areas and quite away from the main market..

OUTSKIRTS: - These areas are quite away from the main city

and the main market, or the interior areas of the towns.

CHATACTER WISE: - Again there is a division of outlets on the

basis of characters (type of work done by the retailers) and there are

again three types of outlets.

CONVENIENCE OUTLET: - These types of outlets include

general stores, beetle shops, stationary shop, medical shop and such

type of other shops.

GROCERY OUTLETS: - These types of outlets include grocery

stores which indulge in selling of foods and related things used in the

home.

EATERY: - It includes restaurants, fast food joints etc.

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Type Public (NYSE: PEP)

Founded 1965

Headquarters New York, USA

Key people Indra Nooyi,

Chairwoman, President & CEO

Industry Food and beverage

Products:

Pepsi

Tropicana Products

Gatorade

Lay's

Doritos

Frappuccino (for Starbucks)

Mountain Dew

Operating income$6.44 billion USD (2006)

Net income $5.64 billion USD (2006)

profit margin 16.06%

Employees 153,000(2005)

GROUP OF COMPANIES

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http://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Publichttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/lcddata.html?ticker=PEPhttp://en.wikipedia.org/wiki/1965http://en.wikipedia.org/wiki/Purchase%2C_New_Yorkhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Indra_Nooyihttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Beveragehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Lay'shttp://en.wikipedia.org/wiki/Doritoshttp://en.wikipedia.org/wiki/Frappuccinohttp://en.wikipedia.org/wiki/Starbuckshttp://en.wikipedia.org/wiki/Mountain_Dewhttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Image:Pepsico-top_r1_c1.gifhttp://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Publichttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/lcddata.html?ticker=PEPhttp://en.wikipedia.org/wiki/1965http://en.wikipedia.org/wiki/Purchase%2C_New_Yorkhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Indra_Nooyihttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Beveragehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Lay'shttp://en.wikipedia.org/wiki/Doritoshttp://en.wikipedia.org/wiki/Frappuccinohttp://en.wikipedia.org/wiki/Starbuckshttp://en.wikipedia.org/wiki/Mountain_Dewhttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Employment

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Frito-Lay North America

PepsiCo Beverages North America,

PepsiCo International

Quaker Foods North America

SOFT DRINK INDUSTRY IN INDIA

India with a population of more than 1.1 billion is potentially one of the largest

consumer markets in the world after china. The consumer market is popularly known as

the FMCG market or the fast moving consumer goods market. Soft drinks come underthis category. Soft drink is basically purchased in India basically for two reasons namely

to quench thirst and for refreshment. The Indian economy currently is passing through a

bullish phase with increasing per capita income. Subsequently the lifestyle of the Indian

consumer is also changing with increased spending on entertainment, refreshment etc.

that is why soft drink companies are looking forward to India with great enthusiasm in

the future to increase their revenue.

The soft drink industry in India dates back to the 1940s when Parle introduced the first

branded soft drink called gold spot. Cola giant coca-cola was the first foreign soft drink

company to setup its shop in India in 1965. Coca-cola made a very good beginning and

dominated the market right from the word go. It faced no competition at that time. The

marketing people did not even need to publicize coca-cola. This extraordinary success of

coca-cola can be attributed to the following factors,

Absence of contemporary competitive brand.

The giant image of coca-cola in the western countries precededtheir entry into the Indian market, and

Indians at that time were very fond of foreign goods.

Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970.

Before this they had introduced a cola flavored drink called pepping which they had to

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withdrew in the face of stiff competition from coca-cola. But the overtly conservative

Indian government of that time with special interest in safe guarding the interest of the

Indian companies started insisting that coca-cola should agree on the following points in

order to continue in India. Coca-cola decided to windup its operations in 1977 rather than

bowing to the Indian government. The main demands of the Indian government were,

Dilution of equity, as the government felt that lots of foreign

currency was being wasted.

Manufacturing of the secret concentrate in India.

Disclosure of the chemical composition of the concentrate.

The exit of coca-cola left a large vacuum in the soft drink market. But this also

accelerated the growth of several Indian soft drinks. Many new soft drinks like frooti,

jump-in etc were launched in the form of tetra pack. However the bottling plants and the

distribution networks of these companies were not up to the mark and left much to be

desired. It took these companies almost one year to come up with new flavors like Campa

cola, Rush etc. to survive in the industry.

However Parle, the pioneer in the soft drinks market blazed its way to national

prominence with their product Thumps Up bearing the slogan happy days are here

again which became a craze. This particular slogan helped to win over the loyalists of

coca-cola who were in a state of cola shock or cola depression! Soon the soft drink

industry started registering phenomenal growth rates and all parley products namely Gold

Spot, Limca and Thumps Up became the brand leaders in their own segments. In spite of

this the soft drink market had a huge untapped potential.

In 1990, coming of the multinational brand Pepsi and immediately started giving stiff

competition to Parley and Coke. The parent company of Pepsi was founded in 1890 at

North Carolina in USA. Its CEO is Roger Enrico. PepsiCo India Holdings Pvt. Ltd. in

headquartered in Gurgaon and its CEO is Ms. Indra Nyui. In India it has 34 bottling

plants of which 8 are company owned bottling outlets (COBO) and 26 are franchise

owned bottling outlet (FOBO). SMV Beverages is a franchise owned bottling outlet.

Coca-cola reentered the Indian market in 1993 in collaborations with Parley India Ltd.

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PEPSICO IN INDIA

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab

government- owned Punjab Agro Industrial Corporation (PAIC) and Voltas IndiaLimited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use offoreign brands was allowed; PepsiCo bought out its partners and ended the joint venturein 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, forhaving refused to release the list of its ingredients and in 1993, the ban was lifted, withPepsi arriving on the market shortly afterwards. These controversies are a reminder of"India's sometimes acrimonious relationship with huge multinational companies." Indeed,some argue that PepsiCo and The Coca-Cola Company have "been major targets in partbecause they are well-known foreign companies that draw plenty of attention." PepsiCohas grown to become one of the countrys leading food and beverage companies. One ofthe largest multinational investors in the country, PepsiCo has established a business

which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S. $1 billion since the companywas established in the country. PepsiCo provides direct and indirect employment to185,000 people including suppliers and distributors.

PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including Pepsi FoodsLtd, Frito - Lay India, and Tropicana Beverages Company. The company, through itssubsidiaries manufactures, bottles, and exports fruit juices and carbonated beverages andpackaged snacks such as Lays, Ruffles, Fritos, and Cheetos. PepsiCo India is based inGurgaon, India.

PepsiCo nourishes consumers with a range of products from treats to healthy eats thatdeliver joy as well as nutrition and always, good taste. PepsiCo Indias expansiveportfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew,in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beveragessuch as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruitjuices, and juice based drinks Tropicana Nectars, Tropicana Twister, Slice, and the new

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brand Nimbooz by 7up with real lemon juice. Local brands Lehar Evervess Soda,Dukes Lemonade and Mangola add to the diverse range of brands.

In snacks segment - PepsiCos foods company, Frito-Lay, is the leader in the brandedsalty snack market and all Frito Lay products are free of trans-fat and MSG. It

manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditionalsnacks under the Kurkure and Lehar brands. The companys high fibre breakfast cereal,Quaker Oats, and low fat and roasted snack options enhance the healthful choicesavailable to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chipps andCheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of itsproducts contain voluntary nutritional labeling on their packets. The group has built anexpansive beverage and foods business. To support its operations, PepsiCo has 43bottling plants in India, of which 15 are company owned and 28 are franchisee owned. Inaddition to this, PepsiCos Frito Lay foods division has 3 state-of-the-art plants.PepsiCos business is based on its sustainability vision of making tomorrow better thantoday. PepsiCos commitment to living by this vision every day is visible in its

contribution to the country, consumers and farmers. PepsiCo India's agri-partnershipswith farmers help farmers across the country grow and earn more.

PepsiCo's involvement in Indian agriculture stems from itsvision of creating a cost-effective, localized agri-base in India by leveraging farmersaccess to world class agricultural practices. PepsiCo India worked with farmers and StateGovernments to improve agri sustainability, crop diversification and raise farmerincomes. PepsiCo helped transform the lives of thousands of farmers by helping them

refine their farming techniques and raise farm productivity, and customized solutions tosuit specific geographies and locations.

The most ambitious project is a joint program, launched in1989, between PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana andPunjab Agro Industries Corporation (PAIC) in Chandigarh. The program focuses onevolving agricultural practices to help Punjab farmers produce internationallycompetitive products. Over the last five years, PepsiCo has also collaborated with the

Thapar Institute of Technology to develop a high quality potato seed program.

PepsiCo was a pioneer in the concept of contract farming underwhich the company transfers agricultural best practices and technology and procures the

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produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acreresearch and demonstration farm in Punjab to conduct farm trials of new varieties oftomato, potato and other crops. The program, which includes seed production, hassuccessfully evaluated the following crops,

Several varieties of basmati rice more than 200 varieties andhybrids of chilli

25 varieties and hybrids of corn

More than 60 varieties of peanut

More than 100 varieties and hybrids of tomato.

Additionally, the development of new tomato varieties has helped increase total annualproduction of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yieldshave more than tripled from 16 tons to 54 tons per hectare.

Under the program, 6 high-qualities, high-yield potato varieties have also been

introduced to Indian farmers. These new potato seeds have helped to increase farmincome and enabled PepsiCo to procure world class chip-grade potatoes for its Frito Laysnacks division. The company has partnered with more than 10,000 farmers working inover 10,000 acres across Punjab, U.P., Karnataka, Jharkhand West Bengal, Kashmir andMaharashtra for the supply of potatoes. PepsiCo India has also partnered with 1,200farmers in Rajasthan to cultivate barley in a tie up with the United Breweries Group.PepsiCo Indias technical team also implemented a high quality seed program to deliverearly generation and disease free seeds to farmers.

Tropicana Tropicana product is an American based company, and was founded in1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by

PepsiCo, Inc. Pepsi offers the wide variety of products to meet the choice and preferencefrom fun for your items to the products choices that contribute to healthier life style.

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KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS

PVT.LTD.

PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani 'Nimbooz by

7Up'

PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus paani 'Nimbooz by7Up'. The product, with real lemon juice, no fizz and no artificial flavors, will beavailable in three packaging formats of 200 ml returnable glass bottles, 350 ml PET and200 ml tetra packs, priced at INR 10, INR 15 and INR 10 respectively.

PepsiCo India Holdings Pvt. Ltd. to Launch Lemon Drink

PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the lemondrinks category and has plans to introduce a product under 7up brand ahead of thesummer season. The new product would be less carbonated and is targeted at the massmarket for on-the-move consumers.

Headquarter : New York, U.S.

Area served : Worldwide.

Industry type : Food and non alcoholic beverages.

Products : Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice, Tropicanaproducts

Nimbooz juice, Aquafina, Fritos, Cheetos, and Lays.

Key person : Indra Krishnamurthy Nooyi (president), and (CEO).

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ORIGIN OF SOFT DRINK IN JAMSHEDPUR

Late Charan Singh is credited with initiative to set up Soft drink industry in thecity. He was a resident of Phagwara, Punjab and he used to sell soft drink in carts.Domestic tension forced him to march to Jameshedpur 50 years ago to seek a living forhim. Then he set up his own machine and started bottling without any brand name. Todayhis son Mr. Sundar Gurudev is carrying out the legacy, which his father had left behind.This plant operates only 3 months (summer). Even today Jamshedpur remembers thegreat exponent THANDA WALA.

The credit of establishing Jamshedpur in the soft drink map goes to late DharamchndKamani. During the course of his business trips he was struck with the idea of setting upof a soft drink industry in Bihar. June 1967 was significant for soft drink industry in

Jamshedpur.

S.M.V. BEVERAGES Pvt. Ltd.

Introduction:

M/s SMV Beverages Pvt. Ltd., Jamshedpur is a franchise owned bottling plant(FOBO) is located on the Tata Kandara road in Adityapur Industrial Area at Jamshedpurand producing Pepsi range of bottled soft drinks, viz. Pepsi, Mrinda, 7up, MountainDew, Slice and Soda and it has now become a house hold word in the state of Jharkhand.The previous name of SMV was STEEL CITY BEVERAGES, but in March 1999 steelcity beverage taken over by Mr. S. K. Jaipuria From Mr. N. K. Kamani along withRushab Marketing company. He was very much enthusiastic to increase the productionand sales and to nature the whole market of Jharkhand. He established another plant inthe same name of SMV Beverages Pvt. Ltd. And increase the production from his new

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plant is 600 bottles per minute. Simultaneously a new market came in name ofHyderabad Marketing Company, which is creating the needs of whole Jharkhand state.The company symbolizes self reliance in technology and ranked as the best bottlingcompany of the country in terms of quality, efficiency, and productivity. Till 1998 it wasunder its chairperson Smt Kokum Kamani and the country has constantly bagged

numerous awards in various occasions for quality assurance and productivity. In 1993 itbagged top honors for the best quality conscious plant among all the Pepsi bottlingcompanies in India. Steel City Beverages Pvt. Ltd. Was established in the year 1967 andproduction commenced in March 1969. At the very start company installed state of artmachines and technology for the production and bottling of soft drink. The bottling plantwith a capacity of 220 bottles per minutes was totally automatic and also had a modernstate of art intermix machine for bringing forth the right blend of flavors. The companyconstitutes to adopt innovative technology in keeping with its policy of constant enteredinto an agreement with Pepsi food limited for the production and sales of soft drinks forthe people of Jharkhand. Right now there is only one bottling plant of Pepsi in Jharkhandand it cater the need of all the Pepsi products in Jharkhand. Entire state is divided into

three territories Jamshedpur, Ranchi, and Dhanbad, and one territory development officercontrols each territory.

ENVIRONMENT SCANNING:

The process by which organization monitors their relevant environment to identifyopportunities and threats affecting their business are known as environment scanning.The external environment in which S.M.V. Beverages Pvt. Ltd. exists consists of abewildering variety of factors. These factors (may also be termed as influences) areevents, trends, issues, and expectation of different interested groups. These factors areexplained below.

Events are important and specific occurrences taking place indifferent environment sectors.

Trends are the general tendencies or the courses of action along

which events takes place.

Issues are the current concern that arises in response to events

and trends.

Expectations are the demands made by interested groups in the

light of their concern for issues.

By monitoring the environment though environmental scanning, the S.M.V.BEVERAGES Pvt. Ltd. consider s the impact of the different events, trends, issues, andexpectation on its strategic management process. Since the environment facingorganization is complex and its scanning is absolutely essential, strategist has to dealcautiously with the process of environmental scanning is collected systematically.Information related to markets and customers, the changes in legislation and regulationswhich have a direct impact on an organizations activities, government policy statements

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pertaining to S.M.V. BEVERAGES Pvt. Ltd. business and industry and so on , could becollected continuously to monitor changes and take the relevant factors into account.S.M.V. BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with specific

environmental issues from time to time. Such studies may be conducted, for instance,

when S.M.V. BEVERAGES Pvt. Ltd. has to undertake special projects, evaluate existingstrategies, or devise new strategies. Changes due to unforeseen development may also be

investigated with regard to their impact on the organization. Today S.M.V. Beverages

Pvt. Ltd. stands as a proud monument the great visionary its founder Late D.N. Kamani

and strides forth towards progress and prosperity for the fulfillment of the ideas of its

revered founder.

ONE DAY IN PEPSI PLANT

In summer, when the mercury level crosses 40F we wish to have ice creams orcold drinks only. And it is as like a dream, if one gets the chance to visit the productionunit of a cold drink plant, and also gets opportunity to have cold drinks without any limitand cost on such a hot day. Tuesday, 19th of May 2009 was one of the hottest days inJamshedpur of this years summer and also a dreams day for me when I got such anopportunity to visit the production unit of pepsi of S.M.V. Beverages Pvt. Ltd.Jamshedpur.

Here I want to share my experience of visiting the production unit of pepsi and

knowledge I gained after seeing the production processes of different brands of pepsi.But before going into the deep I would like to thankMr. Dhananjay Kumar (M.E), whochanged the hottest day into my dreams day and also to all staffs ofS.M.V. BeveragesPvt. Ltd. Jamshedpur for guiding me during this visit and sharing their vast knowledgeand experience with me.

Pepsi production process:

Any cold drinks (soft drinks) generally contains

Water

Sugar

Flavors or fruit pulp

Chemicals

CO2 gas (in carbonated soft drinks)

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The below four ingredients are added with the first ingredient i.e. water and cold drink isprepared. Here in S.M.V. Beverages Pvt. Ltd. Jamshedpur also the same ingredientsare used to prepare pepsi and its other brands. All these ingredients are added atdifferent stages by different processes. The diagram in the next page represents the flowor sequence of steps involved in S.M.V. Beverages Pvt. Ltd. Jamshedpur for

manufacturing of pepsi products. Pepsi products are available in different SKUs (stockkeeping units) or packs, e.g. glass bottle, pet bottle, metal can, tetra pack etc. thepreparation of main liquid or drink is same but the machines and equipments used forfilling in different SKUs are different.

Process flow diagram

Treatedwater fromwater treatment plantTreatedwater

SteamgenerationSteamlineCristal sugarfromsugar store

Sugar storeroom,containingsugarstocks

Syruppreparation(Syruptank)

Syrupfiltrationunit

Syrupchillingunit

1 2 3

4 5 6

7 8 9

1. CausticSoda2. Hot water3.Coldwater

4. Syruptank5. Syruptank6. Syruptank

Flavor addition

CO2Addition

Bottlefiller

Crowningmachine

Emptybottles

Bottlewashingplant7-CausticSoda, 8-Hot water, 9-Coldwater

Washedbottles

Filledbottles

During my visit to S.M.V. Beverages Pvt. Ltd. Jamshedpur, I saw1. Water treatment plant, where water is purified.

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2. Bottle washing plant, where used glass bottles are washed

3. Syrup room, where syrup is prepared from sugar.

4. Bottle filling plant, where bottles are filled with the final product.

5. Acid room, where custic soda is kept, which is used for cleaning

the equipments and pipelines after every batch of production.

6. Yard for keeping empty bottles and ware houses for storing the

filled bottles.

The brief introduction of each plants are given bellow.1. Water treatment plant:

Water in S.M.V. Beverages Pvt. Ltd. Jamshedpur, is coming from the Sitarampur dam

on the Kharkai river. It is stored in a reservoir. This raw water is being treated in thewater treatment plant, before the production process starts. Coagulation process is used

here for this purpose. Main chemicals used are ferrous sulphate (FeSO4), calcium

hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these chemicals in

the treatment tank and becomes turbid. All the impurities get settled at the base and

remove the turbidity. Then, it is sent to the carbon tank where all the microorganisms and

chlorines are removed. The water so obtained is completely free from any kind of

impurities and used in further processing. The maximum alkalinity maintained until as

much as 50 ppm.

2. Bottle washing plant:

Used bottles returning from the market are stealthy. Before filling these empty bottles

with new product, these bottles are passed through the bottle washing plant where these

dirty bottles are washed. It is completely an auto process which takes place within a

machine called washer machine. The machine has three compartments. Bottle for

washing are placed on the conveyer come inside the machine and get successive

treatment. Bottles are treated with 4% caustic soda in the first compartment at a

temperature of 100-150 C. Next these are conveyed to the second compartment, where

bottles are again washed with hot water at a temperature of 80-100 C, in the third

compartment bottles are treated with cold or normal water at room temperature. Time

duration in each compartment is 10 minutes. Bottles are then sent through the inspection

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center, where these are closely watched against white rays of light. Bottles containing

any dust or other unwanted things are removed from the line here.

3. Syrup room:

Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a

specified ratio into a closed container. The temperature of this prepared sugar remains

between 80-100C. This syrup contains some impurities as, sometimes there are some

impurities presents in sugar, so this syrup is filtered to remove all those contaminations.

Before storing in syrup tanks this syrup it is passed through the cooler where syrup

temperature is reduced to 25-30C. This temperature is maintained throughout the whole

process. Here next flavors are added at a specified quantity with the syrup used for

preparation of pepsi or other brands.

4. Bottle filling plant:

Next, for preparation of carbonated soft drinks brands like pepsi, mirinda, 7UP, and

mountain dew, carbondioxide gas ( CO2) is mixed with this prepared solution. And for

the brand like slice, fruit pulp is added. Now the solution is ready for filling into the

bottles. The washed empty bottles are filled by automatic filler machine. This machine

can fill 60 bottles in one minute. After filling, crowns or caps are fitted on the filled

bottles with the help of crowning machine. Now these filled bottles are ladled and then

sent for packing and storing in the godowns.

5. Acid room:

There are three tanks in this room. The first tank contains caustic soda, the 2nd tank

contains hot water and the third tank contains cold water. After finishing every batch of

production the whole production lines and containers/tanks are washed. And for this

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purpose, first of all caustic soda is passed through the pipeline, next hot water and at the

last cold water.

6. Yard for keeping empty bottles:

S.M.V. Beverages Pvt. Ltd. Jamshedpur has a large area in side its premises. A large

part of its open area is used for keeping the empty bottles.

7. Warehouse:

S.M.V. Beverages Pvt. Ltd. Jamshedpur has its own warehouse in side its premises for

storing the produced products. The produced products are sent to the customers from

these warehouses. For transferring the filled bottles inside the company fork-lifts are

used.

PEPSICO PACKAGING PROCESS

PepsiCo is an industry leader in packaging- helping to promote and implementstandards for sustainable packaging.

PepsiCo distribute the products in a variety of packages, each carefully designed todeliver convenience and appeal to the consumers while protecting the integrity of theproducts. The team of engineers and packaging suppliers are dedicated to findingpreferable designs, and are working continuously towards improving the packagingperformance while reducing the packaging footprint. PepsiCo are committed to bringingthe environmental responsibilities to all areas of the business. PepsiCo are continuouslyimproving the environmental programs and exploring solutions to environmentalchallenges through socially responsible, scientifically based and economically sound

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methods. Pepsi pass this commitment along to his suppliers and the consumers in aneffort to do our part. The goals are to design and develop packaging systems that areenvironmentally responsible throughout their entire life cycle, inspire consumers whowant to live more environmentally sustainable lives by promoting recycling, and partnerwith leading organizations to promote sustainable packaging and recycling practices.

Through ongoing engagement with the packaging suppliers, we are working towards aposition where all of our operations use the most environmentally suitable packagingavailable in their country of operation.

PepsiCo follow five principles of sustainable packaging design:

Reduce : Using less material in the packaging, to conserve natural resources.

Reuse : Increasing use of reusable packaging and increasing the amount ofrecycled material in the packaging.

Recycle : Designing packaging for recycling and developing biodegradable andcompostable packaging solutions.

Remove : Eliminating environmentally sensitive materials and processes from thepackaging.

Renew : Increasing use of renewable resources.

In an effort to meet his goals, PepsiCo have launched a global sustainable packagingpolicy and formed a Sustainable Packaging Council dedicated to:

Developing sustainable packaging strategies, goals, and targets

Developing alternative packaging material technologies

Supporting responsible disposal practices

Using Less Material in our Packaging

Although beverage containers are the most recycled consumer packaging in the United

States and they are designed for recycling, we continue to look for ways to reduce theamount of packaging used for the products. And we are achieving success. PepsiCoscientists and packaging specialists have led the way in reducing packaging materialsthrough cost-effective changes in design and production, known in the industry as "light-weighting." Light-weighting reduces the amount of raw materials and energy used tomake our packages and generates less waste after the products are enjoyed.

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PepsiCo introduced new packaging for half-liter bottles of Lipton iced tea, Tropicanajuice drinks, Aquafina Flavor Splash and Aquafina Alive that contain at least 20 percentless plastic than the original package. Aquafina has trimmed the amount of plastic used inits most popular bottle - the half-liter (16.9 oz) bottle - by 35 percent since 2002. Thissaves more than 50 million pounds of plastic annually. Aquafina's half-liter bottle weight

has changed from 15 grams to 13.2 grams putting it among the lightest water bottles onthe U.S. market.

Reducing and Recycling the Waste

At Frito-Lay, route sales employees return empty cartons from stores to our plants for

reuse or recycling and delivery boxes are used an average of six to seven times, saving

nearly 5 million trees a year and keeps 56 million pounds of cardboard away from

landfills. For Frito-Lay's North American and International products, Frito-Lay recycles

packaging film waste from our suppliers' sites for use in various other products (parkbenches, boards, etc). Our Quaker Oats facility in Cupar, Scotland has reduced the

amount of corrugate used by 30% over the past 5 years by moving to cases with open

tops and reduced sides. Over the last five years, PepsiCo U.K. has reduced the amount of

plastic used to make Tropicana and Copella juice bottles by 18 percent. In Mexico, our

snack business saves more than 100 million boxes per year by using every box about

seven times between the distribution center and point of sale. By recycling our boxes up

to seven times, we save on average each year about 45,000 trees, 1,800,000 mz of water

and 1,620,000 liters of fuel. The Latin America Beverages business has optimized

beverage packaging projects across Mexico, Peru, Columbia, Bolivia, Brazil, Argentina,

Honduras and Guatemala, resulting in the removal of over 800 tons of packing annually,

specifically reducing the need for PET resin for bottles, corrugate boxes, bottle-top

closures and glass. The average Pepsi bottle contains 10% recycled plastic, more than

any other national soft drink brand. Pepsi-Cola's bottles and cans are among the most

recycled packages made since 1990; more than 150 billion Pepsi containers have been

recycled. Across all our U.S. divisions, initiatives conducted in 2007 to reduce

packaging have resulted in more than 20 million pounds of material reduction across PET

bottles, paperboard and corrugated materials.

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ORGANIZATION CHART OF SMV.BEVERAGES

JAMSHEDPUR

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ORGANIZATION CHART OF HYDERABAD MARKETING

COMPANY

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EVERY DEALER SURVEY (EDS)

The design of competitive marketing strategies begins with competitoranalysis. The main competitor of PepsiCo is Coca-Cola. In market wesee three types of outlets where cold drinks are sold; those areexclusive outlet of PepsiCo, exclusive outlet of Coca cola and mixedoutlet of PepsiCo and Coca cola. Every Dealer Survey refers to thesurvey of all the three types of outlets of a market segment. In thissurvey we collect the data of various promotional and selling tools (casestock, number of glow sign, dealer board, bunting etc, and number of visicooler)provided by PepsiCo as well as Coca cola present at the outlets.Dealer survey is primary method by which on gets first hand information with respect tothe following factors:Knowledge of market in terms of:

Name and number of dealers

Location of dealers.

Type of dealers.

Market output i.e. case stock, number of glow sign, dealer board,

bunting etc, and number of visicooler.

Distribution Effectiveness:

From the dealer survey we can find out the number of dealers and the stock and the otherdetails. Non buyers also be located. Activation of non buyers should be doneimmediately. With the above knowledge on can increase the number of routes to getincreased dealers coverage and hence also increased more effective sales. Also details ofthis have help to check upon the route selling of salesman, so that we can control them byclosely monitoring their performance.Training group for future executive:

Good investigation from these surveys can be recruited to take up future jobs. Thesepeople will ideally suitable, as they would know the market thoroughly.

They should visit the counter on the daily basis including the remote

areas.

Salesman should visit to every outlet on weekly basis.

How to increase distribution effectiveness:

After the above survey, the company can improve the distributionnetwork.

Immediately activeness of non- buyers.

Improve the dealer coverage.

Increase the realignment of routes.

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Better control thorough route card.

Availability of goods on time.

Therefore, Every Dealer Survey is important keeping in mind that distribution forms

the major marketing activity in our industry and also that through these survey oneacquires knowledge of the market. It should also be added here that continuous dealersurveys are required because of the following reasons.

As our turn over increase we require skills to tackle problem and dealer

survey help in acquiring first hand as to use the skills effectively.

With our increased growth , investment of money are increased for

various marketing inputs e.g. case stock, advertising, merchandising

etc. and by survey we can get an indication of the areas in which

investment should be made to get the maximum benefits.

Importance of EDS (every dealer survey):

Market Knowledge:Dealer survey gives the total profile of the market by knowing Location of dealers.

The type of dealer.

Number of dealer who keep Pepsi and coca cola and comparing the

stock and awareness of brand.

Take the information about distribution process of company.

Take the information to dealer that which brand of product more sell or

popular.

Gather the information about scheme which is given by company to

dealers.

The marketing inputs with respect to:-

i. Advertising

ii. Visi cooler size

iii. Customer service

Though PepsiCo has entered the market only 15 years ago but it has captured a bigmarket share and ends the monopoly of coca cola, which has ruled for 13 years. Thissurvey enables us to know,

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How many exclusive outlets of PepsiCo, Coca cola and howmany mixed outlets of both brands are there in a particular

market segment?

What are the promotional kits presents at all of these threetypes of outlets provided by PepsiCo and Coca cola?

What are the gaps? I.e. what are those promotional tools, whichcan be used to increase the sale of PepsiCo?

How retailers can be motivated to sale PepsiCo products instead

of Coca cola?

Apart from these, this survey also provide us the information about the sales everyoutlets. And this report is useful for planning or taking decision about how much amountshould be spent for sales promotion for each outlet.From these aspects we can know how good we are in the market place and those areas

where we are lacking. It also helped to found that in some place or areas where only thecompetitor brand available, then by the help of survey we can find out the reason behindnon availability of PepsiCo product in that specific area. The knowledge of case stockwill indicate our case- in trade and that of competitors. This will also indicate our casevelocity which helps to plan our bottle as well as whether our distribution is effective ornot. If our case stock is low then we may decide upon a case stocking campaign.Therefore, appropriate marketing strategies can be worked out depending upon thefindings.

PLAN - O- GRAMPEPSICO STRATEGY

PepsiCo provides visicoolers (Refrigerators fitted with glass door) to Pepsioutlets, so that the retailers can provide chilled Pepsi drinks to consumers. This alsoincreases the sale of Pepsi products. Visi coolers are of various sizes for instance 165,200, 220, 300, 320, 400, 440, 650, 1200 and so on. Plan O Gram is theprocess of filling of visi cooler with the Pepsi, and other Pepsi products i.e. 7UP,Mirinda, Slice, Mountain Dew, Aquafina, and Tropicana fruit juice according to thesequence prescribed by PepsiCo.As per the research conducted by PepsiCo, Pepsi is the most selling brand followed by7Up, Mirinda, Mountain Dew and Slice. And on the basis of this research PepsiCohas developed a sequence of different brands for filling up the visicooler and also forplacing in to the shelves. Sequence is as under.

Pepsi 7Up Mirinda Mountain Dew Slice AquafinaPepsi products are available in glass bottles, pet bottles, metal cans and tetra packs. Thenumber of bottles, cans and packets filled in visi coolers varies as per the size andcapacity of the visi cooler. The figure in the next page shows different brands,sequentially filled in a visi cooler.

Objectives

To keep the visicooler pure.

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People what see, that people buy. I.e. to attract consumers by

displaying their favorite brands or to help the consumers in

finding their favorite flavor or brand.

To attract consumers by displaying different brands.

To promote the sale of all flavors or brands.

To motivate the retailers for effective utilization of visicooler for

selling Pepsi brands.

To beat the competitors and to lessen the sale of substitute

products available in the market.

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Products are charged according to theP O G

200 ml glass bottlePepsi and 7UP are in 1stshelve.

Glass bottles ofMirinda, Dew, Sland 600 ml pet b

of Pepsi, 7Up,anmirinda are keptthe 2nd shelve.

2.0 pet bottlesPepsi, Mirinda a7UP are kept in lower shelve.

PepsiCo visicooler

Procedure

Visicooler plan o gram (P O G) includes the following three processes.I. Visi pure and visi cleaning.

II. Charging.

III. Planogram.

l. Visi pure and visi cleaning:

Sometimes retailers use to keep products like chocolates, ice creams, and other substituteand competitors products like fruity, jumpin, horlicks chilled doodh , and coco colaproducts in the visicooler. These products grabs the places of pepsi, again this increasesthe selling of substitute products. Here visi pure means, removing all items except pepsi

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from the pepsi visicooler. And visi cleaning is simply cleaning of visicooler with aduster. Visi cleaning helps to keep the products clean and also attract the consumers.ll. Charging:

This process involves the transfer of pepsi from warm stock to cold stock. Or in otherwords we can say charging is nothing but filling of visicooler with pepsi products from

the stock available at the outlet. This helps in following ways, Helps in effective utilization of the visicooler.

Helps in maintaining the stocks of chilled pepsi products every

time.

Attract consumers.

Helps in keeping the visicooler pure.

Increases sale of pepsi.

Bottles/cans/tetra packets are first cleaned with a clean duster and dusts are removed andthen filled into the visicooler.lll. Planogram:

This is a process which involves sequentially placing of bottles/cans/tetra packs ofdifferent flavors or brands in the visicooler. The sequence of different flavors or brandsis prescribed by Pepsico, and it is discussed earlier. Planogram helps in following ways,

Helps the consumers in finding their favorite flavor or brand.

Attracts consumers by displaying different brands.

Promotes in selling all flavors or brands.

Acts as window display in the outlets.

Under mentioned are the few steps for planogram,# Steps for 1st time planogram i.e. in new cooler.

Step 1: Empty the cooler.

Step 2: Clean the cooler.

Step 3: Clean the bottles/cans/tetra packs with a duster.

Step 4: Place the products in lower shelve first.

Step 5: Maintain a gap of 2 Inches between the bottles and

the upper shelve.

Step 6: Repeat this process.

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Step 7: Charge the products according to the prescribed

sequence of P O - G.

# Steps for planogram during 2nd time and onward visits.

Step 1: Check the cooler.Step 2: Determine the number of bottles of each brand or flavor required to fill the

cooler according to the P O G sequence.Step 3: Clean the bottles/cans/tetra packs with a duster.Step 4: Place the products in lower shelve first.Step 5: Maintain a gap of 2 Inches between the bottles and the upper shelve.Step 6: Repeat this process.Step 7: Charge the products according to the prescribed sequence of P O - G.Step 8: Ensure that cooler is 100% charged.

How retailers are motivated to maintain P O G, and visi pure?

Planogram and making the visicooler pure is the job responsibility of merchandiser. Amerchandiser is a person who visits the outlets on daily basis. He checks the visicooler,makes it pure and charges the product according to the planogram. But, sometimesretailers use to keep other products also (non pepsi products) in the visicooler providedby Pepsico ands they do not show any interest to follow the planogram. So to motivateretailers to follow planogram, PepsiCo provides attractive incentive/pacages to theretailers.I did P o G for two weeks in two different market areas Parsudih and Telco during mytraining period. The P O G reports of these two areas are given in the next pages.Problems, we faced during P O G:

1. Unavailability of all flavors at some outlets.

2. Technical problems of visicooler, such as

Cooling problem.

Cooler was not working.

3. Some retailers were not interested for P O G.

4. Some outlets use to sale only few flavors or brands of pepsi andnot all.

How we solved those problems?

During our training period for P O G, we faced above problems. And with the help,guide and direction of the C.E (Customer Executive) of respective area and ourTrainer(Mr. Dhananjay Kumar) we solved some of those problems.

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1. When there was a shortage of any flavor at any outlet, we

informed to the respective distributor to supply that flavor.

2. After getting information from the concerned C.E, technical

people solved the technical problems of visicoolers at outlets.

3. Some retailers were not interested for P O G. To motivate

them for the same we explained the benefits of P O G and

various skims which were available for the retailers for P O G

and maintaining visi pure.

Pepsi Cool Zone is one of such skim, which was available during that period oftime for the retailers.

4. Outlets, where only few flavors or brands of pepsi are sold not all

the flavors, we placed one available flavors in each shelve of the

cooler.

e.g. Cheer Bar restaurants, where only three brands of

pepsi are sold. which are Pepsi, 7Up, and Pepsi Soda

water.

DISTRIBUTION CHANNEL:-

My field of study will look into upon the following aspects viz. market research of

distribution strategy and market share.

The main purpose of trade is to supply goods to the consumers living in far off places. As

goods and services move from producer to consumer they may have to pass through

various individuals. The middlemen are connecting links between producers of goods and

consumers. They perform several functions such as buying, selling, storage, etc. The

middlemen constitute the channels of distribution of goods. Thus, a channel of

distribution is the route or path along which goods move from producers to ultimate

consumers.

The route taken by goods as they move from producer to consumer is known as Channel

of Distribution.

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From the above diagram it can be found that there is just one direct channel i.e. from

producer to the consumer. There are many indirect channels like:

(1) PRODUCER DISTRIBUTOR RETAILER CONSUMER

(2) PRODUCER CONSUMER

(3) PRODUCER DISTRIBUTOR CONSUMER

The route normally used by FMCG companies especially by the soft drink companies is

the second one i.e. (ii). In this case the wholesaler is usually called distributor.

If the producer is producing goods on a large scale, it may not be possible for him to sell

goods directly to consumers. As such, he sells goods through middlemen. These

middlemen may be wholesalers or retailers. A wholesaler is a person who buys goods in

large quantities from producers; where as a retailer is one who buys goods fromwholesalers and producers and sells to ultimate consumers as per their requirement. The

involvement of various middlemen in the process of distribution constitute the indirect

channel of distribution. Let us look into some of the important indirect channels of

distribution.

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DISTRIBUTOR

Distributors are one of the important middlemen in the channel of distribution who deals

with the goods in bulk quantity. They buy goods in bulk from the producers and sell them

in relatively smaller quantities to the retailers. In some cases they also sell goods directly

to the consumers if the quantity to be purchased is more. They usually deal with a limited

variety of items and also in a specific line of product, like iron and steel, textiles, paper,

electrical appliances, etc. Let us know about the characteristics of distributors.

CHARACTERISTICS OF DISTRIBUTORS

The followings are the characteristics of distributors:

(i) Distributors buy goods directly from producers or manufacturers.

(ii) Distributors buy goods in large quantities and sells in relatively smaller quantities.

(iii) They sell different varieties of a particular line of product. For example, a distributor

who deals with soft drinks is expected to keep all varieties of soft drinks viz. 200ml,

300ml, 500ml, pet bottles, mineral water, soda etc.

(iv) They may employ a number of agents or workers for distribution of products.

(v) Distributors need large amount of capital to be invested in his business.

(vi) They generally provide credit facility to retailers.

(vii) He also provides financial assistance to the producers or manufacturers.

FUNCTIONS OF DISTRIBUTORS

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Let us now know what the functions of distributors are.

(a) Collection of goods: A distributor collects goods from manufacturers or producers in

Large quantities.

(b) Storage of goods: A distributor collects the goods and stores them safely in

warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are stored

in cold storage.

(c) Distribution: A distributor sells goods to different retailers. In this way, he also

performs the function of distribution.

(d) Financing: The distributor provides financial support to producers and manufacturers

by sending money in advance to them. He also sells goods to the retailer on credit. Thus,

at both ends the distributor acts as a financier.

(e) Risk taking: The distributor buys finished goods from the producer and keeps themin the warehouses till they are sold. Therefore, he assumes the risks arising out ofchanges in demand, rise in price, spoilage or destruction of goods.

SWOT ANALYSIS

In order to get clear understanding of the position of Diet Pepsi in the various markets wedid a SWOT analysis from the data obtained from the survey and the various retailerinterviews

STRENGTHS

PACKAGING AND PRICING :- Pepsi has the advantage of having provided the samekind of health based carbonated drink the Slim Diet Pepsi Can which in comparison tothe Diet coke is a much more attractive offering because it is slim sleek equally healthyand way cheaper.

DISTRIBUTION :- As already mentioned Pepsi India has one strongest and mostefficient sales and distribution networks not only in India but also throughout the globe.Also in the particular market where the survey was done the sales people have developednetwork which is powerful enough to make or break sales for Pepsi in any given quarterP R One of the most important factors of success of PepsiCo in India is the relationshipthe company and its constituents have with the channel partners. The Company officialsand even the employees of FOBO have very good rapport and relations with the Channel

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partners. Also the recently introduced retailer benefit schemes such as the gold cardmembership and other free gifts and offerings not only motivate the retailers but alsohelped us create visibility for the Slim Diet Can range in a profound. The experience ofworking with people who welcome us with a smile rather than a frown will always beremembered.

NON-CARBONATED:- This is one those strengths of Pepsi that often goes unnoticedbut plays a very important role in success of Pepsi in India and even around the globe.The non-carbonated segment is dominated by Pepsi, Tropicana is the market leader infruit juices. In the mineral water segment, Aquafina clearly outsells Kinley without anyfuss.

Bottling Pepsi has the advantage of being in partnership with the largest bottler in India,the R K Jaipuria Group. RKJ Group controls almost 65% of the bottling operations ofPepsiCo in India. At times this is also seen as a weakness of Pepsi in India attributing tothe fact that the Jaipuria group is so strong that in certain circumstances it can even defy

the parent Company. Pepsi Pepsi Cola is the biggest strength of Pepsi as it is the marketleader in the Cola segment and clearly outsells both the products the Coca Cola Companynamely Coke and Thums Up. Pepsi controls almost 60% market share in the Colasegment.

WEAKNESS :

SECOND MOVER DISADVANTAGE:- Diet Pepsi Cola does have the first moveradvantage which Diet Coke has and this may prove to be a major shortcoming also in theAgra Market no Extensive efforts have been made to popularize it.Brand On a comparative scale Diet Coke proves to have a better brand image incustomers mind than. This compels to incur extra expenditure in Advertising, Promotionsand Sponsorship.

MCDONALDS:- This is one of the most important reason why Diet Coke outsells Pepsiworldwide and specially in the United States. Similarly, in India Diet Pepsi may suffersin sales because of institutional sales. Now Pepsi is trying very to bridge this gap in thenear future.

EXPENDITURE:- Right from the very beginning Pepsi has hired the biggest and themost expensive stars in the country as its brand ambassadors and has spend heavily onadvertising which has affected its balance sheet.

Vizicoolers:- At presently this is one the biggest problems faced by Pepsi. Pepsi is notable to get refrigerators in India so they have to import it other namely Sri Lanka,Mauritius etc. Because of this, retailers are facing lot of problems in vigicoolers. They are

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not able to get new refrigerators, replacements for old ones, even the repair work takes lotof time because at times even the spares are not available on time.

OPPORTUNITIES

Lowest Per Capita Consumption:- Even after almost decades of presence in the market,there are growth opportunities for Diet Pepsi in India as here the per capita consumptionof carbonated beverages is one of the lowest in the world.Health Based: apart from its Juice Based drinks portfolio Pepsi can Use the Slim Diet canto the maximum by promoting it as a health drink at Cheaper prices.

THREATS:

NGOs:- NGOs like CSE can seriously hamper the sales and prospects of companiesoperating in this industry. This happened during the pesticide controversy involving bothcoke and Pepsi.

HEALTH:- Growing health awareness among people and some of ill effects ofcarbonated beverages have pursued many people to switch over to non-carbonatedbeverages that can seriously hamper the long-term prospects of the entire Industry andnot Pepsi.

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ENVIRONMENT:- Environmental concerns are often raised because of the massiveamount of water extracted by the bottling plants resulting in the drop in groundwaterlevel which affects the local population adversely. In India PepsiCo adopted the strategyof growth through intensification. In the intensification strategy, it used marketpenetration by developing one of the strongest sales and distribution network in the world

and utilizing it to the fullest.Pepsi did market development by making the aware of the best products available at theirdisposal, by using the best technology to produce the products, by properlycommunicating with the customer, and making the customer realize that he is important.Pepsi also explored new markets by venturing new segments like fruit based beverages,sports drinks, snack food division.Pepsi expanded and established itself in the market place by constantly developing newproducts to the customers, like Tropicana, Gatorade, and Pepsi Blue. In this way, Pepsiwas also able to effectively counter the threats posed by substitutes and new entrant

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PART-2

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INTRODUCTION

There is a project on market research and, which has been done by me for S.M.V

BREVELAGES. LTD, JAMESHEDPUR (A franchise of Pepsi India Ltd). Customer

satisfaction and the market research has the aim of building mutually satisfied long term

relation with key parties customer , suppliers, distributors in order to earn and retain

their business.

PURPOSE:

The purpose of the project is to gather information about the true market

position of the soft drink market in the Jamshedpur division. Its main objective is to find

out how strong the relationship between Pepsi co. and the customer is and what are the

problems faced by retailer & customer.

OBJECTIVE OF THE STUDY

To know the distribution strategy adapted by the organization.

To know the response of the dealer regarding the product of PepsiCo.

To find out the market share of Pepsi with respect to coca-cola in terms

of WARM STOCK, CHILLED STOCK AND EMPTHY STOCK.

TO estimate Per day sale of Pepsi brand and its competitors in

Jamshedpur

To analyze the problem of retailer and customer

To analyze customer satisfaction of Pepsi as compared to coke

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2. Description of the Field

2.1 Introduction

The field of the study is JAMSHEDPUR town of the JHARKHAND. The study was on

the market research on Pepsi customer and also about the retailers. As it is the GREEN

CITY of JHARKHAND, this region is very developing with every scope to boost the

living standard of people. As the situation is convenient for our investigation to study

MARKET RESEARCH ON PEPSI IN JAMSHEDPUR MARKET.

As field situation is crucial for the research, we find the field informative for a research

with the available heads.

2.2 DESCRIPTION OF THE FIELD:-

The field of my study covers MANGO areas of the JAMSHEDPUR town for customer

data and I have covered for the retailers in the Jamshedpur town around 6 areas. I have

collected some data from customers like that areas mango 1, mango 2, bistupur,

adityapur, persudih, jugsalai.

1. Kasidih:-

This area is at the near of highway. It is very populated and market area. SO I found all

type of respondents for my study. They gave different opinion which helped me to get

different views and different suggestion from the different types of the people.

2. Aam bagan:-

It is an official colony for TISCO employee & heart of Jamshedpur. So here I found

various govt. job holder respondents and also this area helps me in giving various

information regarding PEPSI and Pepsis other soft drinks as it is family oriented area.

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Also here all type of respondents were found who gave different opinions on the basis of

their economical status and daily needs.

3. Kalimati:-

It is very industrial area where every type of people comes from their busy life for

enjoying in work. So her there was a chance to get the authentic data regarding the study.

4. Sakchi market:-

It is very populated as well as peaceful area where the people come to get some peace at the very

time. So here is a greater chance to get different types of authentic data from different types of

respondents.

5. Tank road:-

It is market area which is full of every type of people i.e. different age groups different class, etc

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3. RESEARCH METHODOLOGY

3.1 INTRODUCTION

Every research needs a systematic or scientific study so that proper authentic data

can be found out.

By systematic it is mean that the study should be best on scientific analysis and

follows a proper and logical methodology.

In order to make our research empirically valid and scientifically relevant a proper

research methodology has been evolved which caters from research design,

research tools, techniques methods, to analysis and proper presentation on data.

In this present study, I have seen in six areas of Jamshedpur town and areas of

retailers in Jamshedpur. A consensus was made regarding the methodology to be

adopted before going to the field which would be intended with the selected topic.

Methods of data Collection:-

There are mainly two types of data:1- Primary Data

2- Secondary Data

1. Primary Data Collection:-

Primary data can be collected by three methods:

A) ObservationB) Experiment

C) Surveys

But here, only survey method of data collection is proffered which is very suitable to

reach the researchers motto.

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i) Research Instrument: - Printer questionnaire was used as the research

instrument to collect the required information. Separate questionnaires were

prepared for retailer survey and interview was taken by the help of thequestionnaire.

ii) Area of Survey: - The survey was conducted in the different localities of

Jamshedpur city.

Sampling Plan: - Sampling plan consists of:

a) Sampling Unit: - The retailer of grocery shop, general store, betel shop, medicine

store was selected from different place of Jamshedpur.

b) Sample Size: - for retailers survey, 500 retailers were taken as sample size and

for the customer survey I have collected 150 samples fro the customer.

c) Sampling Procedure: - Cluster sampling producer was followed.

d) Sampling Method: - Data were collected by retailers and customer survey. The

retailer and customer are directly conducted and interviewed at their retail counter

and the different areas for the customer.

e) Time Period of Study: - The survey was conducted during 1st may to 30th June

2010.

2. Secondary Data Collection: -

As secondary data were not available with stockiest or with company people, so these

were collected from different books, company journals, company records and other

magazines.

3.2 SELECTION OF THE FIELDI selected areas some different view according the convenience of my study and also

to get convent respondents for my research. The field was consisted of six areas of

customer in the Jamshedpur town i.e. mango 1, mango 2, bistuput, adityapur,

persudih, jugsalai and seven areas for retailers in the Jamshedpur town.

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These areas were taken as our field of my study because these areas are populated,

peaceful and also market and family oriented. Here mixed populations were found i.e.

educated, unemployed, all types of age groups etc.

Research Design:-

In this research descriptive, research design was used because it finds out the

diagnostic information by asking the question like:

(a) What is it?

(b) Why is it?

(c) What it will be?

(d) What is should be?

Here it has been tired to analyze and describe about the reason behind the customer

satisfaction in Jamshedpur market and what measures should be applied.

3.3 SELECTION OF SAMPLES:-

When a small group is taken as the representative of the whole, the study is taken as

sampling study. The whole group from which the samples have been drawn is technically

known as universe or population and the group selected for the study is known as sample.

In the present study the universe is the total population if the six selected areas:

(1) Sakchi market (main area of survey)

(2) Kalimati Road

(3) Tank road

(4) Kasidih

(5) Balubhasa

(6) Aam bagan

As the universe is too much large so I decided to take only 150 customers and 400

retailers in the Jamshedpur market as our size for the convenience of my study.

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The sample is very small as compared to the universe which may inconvenient yet it

fulfills the aim of the topic selected to be studied. As sampling method simple random

sampling design was taken. Because the samples or the respondents were selected on the

random basis without any bios.

3.4 DATA COLLECTION (Tool and Techniques used)

Data are of two types i.e. Primary and Secondary. To collect primary data from

different source, along with samples, different tools and techniques will be used.

To collect data from a universe, along with samples, different tools and

techniques are used.

The methods of primary data collection i.e. adopted that that present study are

interview method (structured), questionnaires method (both open and closedended) and also the observation method.

Also the secondary data were collected through newspapers, articles, and Internet .

3.5 DATA ANALYSIS (statistical technique)

The Statistical techniques used in the study are:-

Pi-Chart

Bar-Chart

PROBLEM ENCOUNTERED

1. Most of the people and retailers to whom I was trying to convenience, were

refusing to talk to me, because they thought that I had come from some

government organization or I was doing this only to earn money.

2. Female respondents were avoiding to my questions due to their shy nature and

also due to their conservativeness.

3. The responders were not giving the accurate data about income and about his

policy adopted.

4. Now they have the awareness towards the soft drinks they have adopted so it was

difficult for them to tell about looses and benefits of the drinks.

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5. Some time the respondents were feeling very irritated while talking with me.

6. Due to illiteracy and low education, some respondents were unable to tell

anything authentically and also they did not have any interest on my topic.

7. At that time one of the major problems was hot season. It was summer time and in

this time I have moving different areas for the data collection and created very big

problem to me.

MARKET REASERCH OF customer satisfaction

INTRODUCTION:-

Satisfaction is a person feeling of pleasure or disappointment resulting from comparing aproducts perceived performance( or outcome) in relation to his or her expectation.

As the definition makes clear, satisfaction is a function of perceived performance andexpectations. If the performance falls short of expectation, the customer is dissatisfied. Ifthe performance matches the expectation, the customer is satisfied. If the performanceexceeds expectation, the customer is highly satisfied or delighted.

Many company are aiming for high satisfaction because who are just satisfied still find iteasy to switch when a better offer comes along. Those who are highly satisfy are muchless ready to switch. High satisfaction or delight creates an emotional bond with thebrand, not just a rational preference. The result is high customer loyalty. Xeroxs seniormanagement believes that a very satisfied or delighted is worth 10th times as much to thecompany as a satisfied customer.

Some of todays most successful companies are raising expectation and deliveringperformance too much. These companies are aiming for total customer satisfaction.

HOW TO RETAIN CUSTOMERS?

As we know that the customer behavior is quite complex itself, so it is not easy tounderstand it completely and also make customer loyal towards the firm, but one canminimize those reasons responsible for brand switch over in some possible extent. Beforefinding some possible suggestion to retained a customer, we have to simplify the matrixof relationship one again. Generally we developed the maintain relationship in which

rewards are distributed in proportion of costs. When our share of rewards is less thenwhat is demanded we are likely to experience dissatisfaction and exit the relationship,vice-versa.

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CUSTOMER VALUE= BENEFITS+PRICE

Benefits = the sources of satisfaction provided by a product

Price= both financial and non financial costs (cost of using)

Source of Benefits= Product, Price, Promotion, Place, People, Process, Physical at

a level sustainable superior to competition.

Developing closer relationship with the customer and turning them into loyal ones,

the firm may consider the following suggestion:

Define clearly the company needs and objective

Define customers clearly with a deep understanding of their needs.

Define explicit priorities for access to customer database based on enterprise

benefits of each customer contact.

Establishing call centers which help in automating the operations off calls

generated between a firm and its customers, to build terms strategic relationshipswith them.

Personalization transforms a standard product or service into a specialized

solution for an individual.

Use technologies as the rapid growth of the Internet based techniques have

provided techniques where companies establishing one to one customer

relationship online.

The same set of customers will not be targeted too frequently, and interested

customers will not be ignored.

The aim of relationship marketing is to create strong, lasting relationship with group of

customers. It is to a firms advantage to develop long term relationship with existing

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customers because it is easier and less expensive to make an additional sale to an existing

customer than to make a new sale to a new customer.

Customer satisfaction is more than just nice to know its the leading indicator of your

companys financial success. Unlike traditional market research companies, the Service

Management Group (SMG), is a satisfaction and loyalty research and consulting

company dedicated to employee and customer satisfaction measurement and service

improvement for multi-unit companies in the retail, restaurant and hospitality industries

through customer surveys and employs surveys. Whether you manage 50 or 5000

location, SMG can unearth the necessary information though customer satisfaction

measurement to help elevate service levels, loyalty and sales figures-at each individual

location.

When customer rate their satisfaction with an element of companies need to recognize

that customers vary in how they define good delivery. It could mean early delivery, on

time delivery, order completeness, and so on. Yet if the company had to spell out every

element in details, customers would race a huge questionnaire. The company must also

realize that two customers can report being Highly Satisfied for different reasons. One

may be easily satisfied most of the time and the other might be hard to please but was

pleased on this occasion.

4.1 SOURCE OF CUSTOMER SATISFACTIN

Research tells that a customers satisfaction comes from four major sourceswhich are:-

Price of the product

Quality of the product

Approach of the Marketing Personnel

After Sales Services.

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So the company should fulfill these aspects so that customers buy their products.

Companies also should have to note that managers and sales people can manipulate their

ratings on customer satisfaction. They can also try to exclude unhappy customers from

the survey.

4.2 TOOLS FOR MEASURING CUSTOMER SATISFACTION

The following tools measure customer satisfaction:-

COMPLAINT AND SUGGESTION SYSTEM:-

A customer-centered organization makes it easy for its customers to deliver suggestion

and complains. These information flows provide companies with many good ideas and

enable them to act quickly to resolve the problems.

CUSTOMER SATISFACTION SURVEY:-

Responsive companys measure customer satisfaction directly by conduction periodic

surveys them questionnaires to make telephone calls to a random sample of customers.

They also solicit buyers view on their competitors performance. While collection

customer satisfaction data it is also useful to ask additional question to measure

repurchase intention, this will normally e high. It is also useful to measure the likelihood

or willingness to recommend the company and brand to others. A high positive word-of-

mouth score indicates that the company is productive high customer satisfaction.

GHOST SHOPPING:-

Companies can hire persons to pose as potential buyers to report on strong and weak

point experienced in buying the companies and competitors product. The ghost supper

can even certain problem to test whether the companys sales personnel handle the

situation well.

LOST CUSTOMER ANALYSIS:-

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Companies should contact customers who have stopped buying or who have! Switched

over to another superior to learn why this happened. Not only is it important to conduct

existing interviewers when customers first stop buying but it is also necessary to monitor

the customer loss rate. If is increasing this clearly indicates that the company is falling to

satisfy customer.

If general, customer satisfaction may be defined, as it is a person feeling of pleasure or

disappointment resulting for comparing a producers perceived performance or outcome

in relation to his or her expectations.

4.3 IMPORTANCE OF THE CUSTOMER

Customer satisfaction increased the companies business.

It creates an emotional bond with a brand

Customer satisfaction leads to higher profitability.

It helps the future growth of the company substantially.

MARKET RESEARCH

Research the immediate competitive environment of the marketplace, including customers,

competitors, suppliers, distributors and retailers.

MARKETING RESEARCH

Includes all above plus:

Companies and their strategies for product and markets.

The wider environment within which the firm operates. (e.g. political, social, etc)

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5. MARKETING ACTIVITES

INTRODUCTION

Marketing needs a framework that begins and ends with the customer. Marketing tools by

themselves do not achieve marketing objectives. There is an intermediate step betweenthe deployment of marketing tools and the achievement of marketing objectives. A

marketing network consists of the company and its supporting stakeholders (customers,

suppliers, distributors, retailers, ad agencies, and others). The operating principle is

simple: build an effective network of relationships with key stakeholders, and profits will

follow.

A set of marketing tools the firm uses to pursue its marketing objectives are called

marketing mix. These tools can be classified into four groups which are called the four

Ps of marketing

PRODUCT PLACE

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MARKETING MIX

TARGET MARKET

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PRICE PROMOTION

However some academicians feel that the four Ps of marketing have become redundant

and needs to be replaced by thefour as or