A
Dissertation
Report
On
"SALES PROMOTION ACTIVITIES and MARKET SHARE OF PEPSI in
VERAVAL"
By
PANJA SAHEZAD NOORMOHAMMEDMaster of Business
Administration(Marketing)Roll No.6401
Under the guidance of
Prof. MOHAMMAD TALHA AHMED"
Submitted to
ANJUMAN KHAIRUL ISLAMS POONA INSTITUTE OF MAMAGEMENT SCIENCES
& ENTREPRENEURSHIPK. B. Hidayatullah Road, Camp,
PUNE-411001.
]
acknowledgement
The Dissertation report is a sincere attempt to carefully and
systematically gather facts about the Sales Promotion Activity and
Market Share of Pepsi Ltd in VERAVAL. For the completion of my
project report many person directly or indirectly assisted me.At
first, I would like to express my sincere thanks and deep gratitude
to my esteemed guide Mr. MOHAMMAD TALHA AHMED for his kind
initiative, guidance and valuable suggestion without which the
completion of this would not have been possible.Last but not the
least I would like to thank my parents and friends for their direct
or indirect support.
(Sahezad Panja)
List Of Contents
SR. NO.TITLEPAGE NO.
1INTRODUCTION
EXECUTIVE SUMMARY
1 3
OBJECTIVES OF THE STUDY
13 14
2REVIEW OF LITERATURE
3RESEARCH METHODOLOGY
15 33
QUESTIONNAIRE
LIMITATIONS
4DATA ANALYSIS
34 50
5FINDINGS & OBSERVATIONS
51 53
7.SUGGESTIONS & CONCLUSIONS
54 55
INTRODUCTION
HISTORY OF PEPSIPepsiCo is a world leader in convenient snacks,
foods and beverages with revenues of more than $39 billion and over
185,000 employees.The company consists of PepsiCo Americas Foods
(PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International
(PI).PAF includes Frito-Lay North America, Quaker Foods North
America and all Latin America food and snack businesses. PAB
includes PepsiCo Beverages North America and all Latin American
beverage businesses. PI includes all PepsiCo businesses in the
United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo
brands are available in nearly 200 countries and generate sales at
the retail level of more than $98 billion. PEPSI Co. is a USA based
Company having its head quarters at New York with the net worth of
$ 39474 million. The average sales of the company are approx 90
million bottles per month. PEPSI made its first international move
in Russia in 1959, during the KRUSCHEV era. Within 32 years PEPSI
emerged as the biggest competitor for Coca Cola.
Pepsi food is one of the largest soft drink companies in the
world. It was invented by Pharmacist Culab D. Baradham in 1898 to
cure the disease disparsia. It is from this word that its name was
related to Pepsi. It entered the American market as soft drink,
which at that time was mostly dominated by Coca Cola, but soon
Pepsi was able to dominate the Cola market and there after it has
been no looking back. Pepsi and coca cola are engaged in ferocious
cola war that has taken the whole world by storm.
HISTORY OF SOFT DRINKS 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 India Limited. This joint venture
marketed and sold Lehar Pepsi until 1991. When the use of foreign
brands were allowed; PepsiCo bought out its partners and ended the
joint venture in 1994. Others claim that firstly Pepsi was banned
from import in India, in 1970, for having refused to release the
list of its ingredients, and in 1993, the ban was lifted, with
Pepsi arriving on the market shortly afterwards. These
controversies are a reminder of Indias sometimes acrimonious
relationship with huge multinational companies. Indeed, some argue
that PepsiCo and the Coca-Cola Company have been major targets in
part because they are well-known foreign companies that draw plenty
of attention.
Pepsi food is one of the largest foreign investments in India.
Till today, it has invested over Rs. 500 Crores in India to bottle
its total product. It came out with dazzling marketing innovations
that rocket the cola market line, selling the product through Pepsi
exclusive outlets. Pepsis success in creating a brand almost from
scratch in India is the stuff that marketing case studies are made
of. Given the problems of doing business in markets like ours,
Pepsi entered the market as an under-dog. Its first advantage was
considerable reduced by the enormous export obligations stepped on
the company.
Right from the beginning, Pepsi demonstrated a far more focused
approached. So while it entered the market like any other MNC, it
was quick to adapt. It realized that consumers, particularly the
youth, to whom it consciously reached out. It would identify better
with a brand that they see as global, yet Indian.Pepsi was built as
a desi brand. Hence its deliberate attempt to build and campaigns
using the popular Hinglish in the process, slogans like, YAHI HAI
RIGHT CHOICE BABY and YEH DIL MAANGE MORE AHA became part of Indias
popular consciousness. When Pepsi lost the bidding battle to
sponsor a Cricket tournament to coke, the loss was turned into
triumph with the catch line, NOTHING OFFICIAL ABOUT IT It cashed in
the untapped consumer aspiration in smaller towns, the hinterlands
of metropolitan cities and said YEH PYAAS HAI BADI
It showed a rare ability not only to survive, but also grow
through Indias tortuous policy twists and turns, which threw many
other MNCs off balance. Its top management team did not suffer from
the frequent changes seen at rival, Coke. Consequently, it was able
to unlike coke, which paid enormous prices to buy out established
local brands. Pepsi brought its own stuff over, and pushed those
aggressively with dealers, retailers and consumers. Right now, it
can bark its outstanding success in building a brand that has
become synonymous with soft drinks across the length and breadth of
the country.
EXECUTIVE SUMMARY
There is a famous saying, "The Theory without practical is lame
and practical without theory is blind".This modern era is an era of
consumers. Consumers satisfy themselves according to their needs
and desires, so they choose those commodities from where they
extract maximum satisfaction.
The title of my project is A Brief Study of Sales Promotions
Activities and Market Share of Pepsi in VERAVAL.
HOW DID I CARRY OUT THIS PROJECT? To carry out this project, I
choose VERAVAL area as a sample. For the collection of information
I met distributors, retailers and customers. For this I prepared a
questionnaire and conducted several personal interviews which
helped me in collecting primary data for my project. My sample size
is 105. While performing the specific research/study the following
steps had been followed:1. Define the research problem &
research objective1. Develop research plan1. Collect the data1.
Analyze the data1. Interpret and present the findings1. Suggestions
based on findingsThe data can be categorized in two types, i.e.
Primary data and Secondary data. Retailers were interviewed for the
primary data and their requirements were understood. Customer
preferences were understood through the data collected from
retailers. This was done because retailers directly communicate
with customers and can visualize their needs and preferences.
Secondary data are collected from company websites and magazines
& newspapers.
RESULTS:
Pepsi rules the market which is bigger than all other brands of
Pepsi taken together, but the company wants to get an idea about
its consumers, their taste, consumption pattern, choice and
awareness about promotional schemes. All these are incorporated in
my survey which paints a lucid picture of Pepsi and its brands.
All though it was a hard nut to crack for me to collect a lot of
consumers views during this short span of time, I tried to cover
maximum number of distributors, retailers to know consumers
preference, taste and satisfaction.
OBJECTIVES OF THE STUDY
1. To find out the companys position in the soft drink market.
1. Calculate the market share of Pepsi.1. To find out the exclusive
outlets of Pepsi and its competitors.1. To find out the promotional
activities of Pepsi.1. To study the advertising techniques used by
Pepsi.1. To determine the factors, which persuade the retailers for
sale of Pepsi products.1. To ascertain the consumer brand
perception of soft drink with respect to price, product, taste,
quantity and advertising..1. To assess the strength of consumers
satisfaction about the brands, pricing, distributions etc,
awareness about the Pepsi products.
REVIEW OF LITERATURE
Review of LiteratureMarketing:Marketing is human activity that
is directed at satisfies needs and wants through exchange
proceed.Marketing has been viewed as on-going or dynamic process
involving a set of various activities involved in generation of
markets and also satisfying customer through the distribution of
quality products and services. It deals with market information,
product development .pricing physical distribution and decisions.
Marketing is process by which individuals and group obtain what
they need and want by creating exchanging [products and values with
each other. Marketing is a societal process by which individuals
and groups obtain what they want and need through creating,
offering and freely exchanging products and services of value with
others. Its role is to deliver a higher standard of living.-Philip
KotlerBUYING BEHAVIOUR: It blends elements from psychology,
sociology, social anthropology, marketing and economics. It
attempts to understand the decision-making processes of buyers,
both individually and in groups such as how emotions affect buying
behaviour. It studies characteristics of individual consumers such
as demographics and behavioural variables in an attempt to
understand people's wants. It also tries to assess influences on
the consumer from groups such as family, friends, reference groups,
and society in general.Customer behaviour study is based on
consumer buying behaviour, with the customer playing the three
distinct roles of user, payer and buyer. Research has shown that
consumer behaviour is difficult to predict, even for experts in the
field. Relationship marketing is an influential asset for customer
behaviour analysis as it has a keen interest in the re-discovery of
the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. A greater importance is also
placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social
functions can be categorized into social choice and welfare
functions.Each method for vote counting is assumed as social
function but if Arrow possibility theorem is used for a social
function, social welfare function is achieved. Some specifications
of the social functions are decisiveness, neutrality, anonymity,
monotonicity, unanimity, homogeneity and weak and strong Pareto
optimality. No social choice function meets these requirements in
an ordinal scale simultaneously. The most important characteristic
of a social function is identification of the interactive effect of
alternatives and creating a logical relation with the ranks.
Marketing provides services in order to satisfy customers. With
that in mind the productive system is considered from its beginning
at the production level, to the end of the cycle, the consumer
(Kioumarsi et al., 2009).A consumers buyer behaviour is influenced
by four major factors:1) Cultural, 2) Social3) Personal4)
Psychological.
CULTURAL factors include a consumers culture, subculture and
social class. These factors are often inherent in our values and
decision processes.SOCIAL factors include groups (reference groups,
aspirational groups and member groups), family, roles and status.
This explains the outside influences of others on our purchase
decisions either directly or indirectly.PERSONAL factors include
such variables as age and lifecycle stage, occupation, economic
circumstances, lifestyle (activities, interests, opinions and
demographics), personality and self-concept. These may explain why
our preferences often change as our `situation'
changes.PSCHOLOGICAL factors affecting our purchase decision
include motivation (Maslow's hierarchy of needs), perception,
learning, beliefs and attitudes.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Marketing research is the collection and interpretation of facts
that help marketing management to get products more efficiently
into the hands of customers. Market research encompasses all
information pertinent to this task, with appropriate techniques
Green and Tull have defined Marketing Research as, The
systematic and objective search for and analysis of information
relevant to the identification and solution of any problem in the
field of marketing
According to the American Marketing Association (AMA), research
is the systematic gathering, recording and analyzing of data about
problems relating to the marketing of goods and services.
There are various types of research design:0. Exploratory
Research Design0. Descriptive Research Design0. Experimental
Research Design
1. Exploratory Design: - An exploratory marketing data has to be
obtained with regard to a predetermined objective or a hypothesis
or an assumption and to test the hypothesis to arrive at a
conclusion.
1. Descriptive Design: - In a descriptive marketing research
data pertaining to the ongoing state of market affairs is obtained
and to study the market situation in a SWOT frame work.
1. Experimental Design: - This research is a design in which a
cause and effect study is carried out by conducting an experiment
in the market to understand, what is happening in the market.
Depending upon the objective of research, marketing research
design is selected.According to the research objective I plan to
choose exploratory research.
Data Collection method
Since the study is exploratory in nature, a personal interview
with each retailer and aid of questionnaire were selected as the
method of obtaining data. The questionnaire was used in Sitamadhi
to facilitate tabulation and analysis of data was designed for
segment retailers.The questionnaire was prepared by researcher
himself. For interview as far as those languages were used which
they can understand clearly; such as Hindi & English. The
researcher used to stand in front of the randomly chosen retail
outlet. This is a comprehensive master plan of the study
undertaken, given a general statement of the method used and
procedure followed. Data Sources: The various source of information
broadly divided in 2 categories:1. Primary sources: Sources from
where first hand information is gathered directly are called
primary source and information thus collected is called primary
data. Primary data collection involved: Distributors, Retailers,
and Customers. Research Approaches: Survey Research Instrument:
Interview Schedule 1. Secondary sources: The data that are
collected for other purposes already existing somewhere is called
secondary data. With regard to my study the secondary sources were
records of the company, websites of the company, magazines and
newspapers. The samples were on judgment and convenience. A sample
size of 105 respondents was taken. The sampling unit was retailers
of Sitamadhi and its adjacent rural areas. The sample consisted of
retailers spread over the entire area of the distributor.For
Analysis & interpretation of data the research used:
100Percentage = No. of respondent Total No. of respondents
Sample size 105
QUESTIONNAIRE
Name
-------------------------------------------------------------------------Address-----------------------------------------------------------------------
Contact No.
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1. Type of Outlet: .(a) General Store (b) Pan Shop(c) Sweet Shop
( (d) Lassi/Juice Shop(e) Dhaba/Canteen (f)Others
2. Which brand of soft drinks is available in the outlet? (a)
Pepsi (b) Coca Cola (c) Both (d) Others
3. Monthly Sales of Pepsi products (in Rs.) (a) Less than 5,000
(b) 5,000 to 10,000 (c) 10,000 to 15,000 (d) Above 15,000
4. Number of cerates sold per month of soft drinks. (a) 0 to 50
cerates (b) 50 to 100 cerates (c) 100 to 150 cerates (d) 150 to 200
cerates
5. Which companys visi-cooler do you have in your outlet?(a)
Pepsi (b) Coca-Cola (c) Both
6. Which companys signage do you have in your outlet? (a)
Pepsi(b) (b) Coca-Cola (c) Both (d) No signage
7. When any one comes to your shop which brand of soft drinks
does he/she demand? (a) Pepsi (b) Coca-Cola (c) Other
8. Which companys soft drink is demanded most? (a) Pepsi (b)
Coca-Cola (c) Others
9. Which factors affects the sales most? (a) Advertisement (b)
Schemes (c) Presence (d) Taste (e) Price (f) Others
10. What kind of promotional activities affect sales most? (a)
Free bottle scheme (b)Prize (c) Discounts (d)Other 11. Which medium
affects the sales most?(a) Television (b) Magazines/Newspapers(c)
Display (d) Wall painting/Hoardings
12. Do you think that aggressive advertising can further
increase the sales volume of Pepsi? (a) Yes (b)No (c) Cant say
13. Your recommendation for further sales:..
14. Any suggestion for betterment of Pepsi:..
LIMITATIONS OF THE STUDY
1. Shortage of time factor was one of the biggest constraints.
1. Since the product under study was a consumer goods which
requires a large sample to have a correct study, a sample size of
105 respondents was too small for it. But time & money did not
allow researcher to have a large sample and also to manage a large
sample would be difficult by researcher alone.1. Most stress was
given on primary data, as it was difficult to collect Secondary
data from organization & distributors.1. The sample selected is
not purely random, but it is convenient so that the result of the
survey doesnt have any high degree of statistical significance. 1.
The results of survey are based upon crucial assumptions like -1.
The respondents know right answers to the questions put to
them.(II)They are willing to give the right answer.(III) Strictly
based on the responses of the retailers.(IV) Difficult to ascertain
the authenticity of their statement. (f) Region i.e., Urban area
therefore the result are applicable to Pune region only. These
findings may not have much relevance in other regions of the
country.
DATA ANALYSIS
0. EXCLUSIVE OUTLETSProductsNo.Percentage
Pepsi65.71%
Coca-cola1211.43%
Both(Pepsi & Coke)8782.86%
Total105100%
From graph it is clear that number of exclusive outlets of
Coca-Cola is more than that of Pepsi. 87% of outlets having both
company products.
0. AWARNESS:
ProductsNo.Percentage
Pepsi105100%
Mirinda105100%
7up105100%
Slice & Soda7875%
All people are aware about the products of Pepsi like Pepsi,
Mirinda, 7up, but some are not aware about the Slice & Soda
product.
0. MONTHLY SALES of Pepsi products (in Rs.)
SalesNo.Percentage
Less than 50002523.81%
5000 100002019.00%
10000 150004542.85%
Above 150001514.29%
Total105100%
Most of the retailers sold Pepsi products about Rs. 10000 to Rs.
15000. Few retailers like restaurants were selling more than Rs.
15000 per month.
0. MARKET SHARE (Monthly sales in no. of bottles) Sales (No. of
bottles)
No.Percentage
Pepsi361039.19%
Coca-cola503554.69%
Others5656.13%
Total9210100%
From the above graph it is clear that market share of Pepsi
product is about 42% and Coca-Cola about 58%. So it shows dominancy
of Coca-Cola over Pepsi in the market
0. Number of cerates sold per month of soft drinks. Sales (No.
of Cerates)No.Percentage
Less than 50 cerates109.52%
50 1007369.52%
100 1501817.14%
Above 15043.81%
Total105100%
Most of the retailers sold 50 to 100 cerates of soft drinks per
month. One cerate contains 24 bottles of 300ml of soft drinks.
0. VISI COOLERS Visi coolersNo.Percentage
Only Pepsi2120%
Only Coca cola1817.14%
Both Pepsi & Coca cola98.57%
Own Visi coolers5249.52%
No Visi coolers54.76%
Total105100%
It is clear that the visi coolers in Pepsi exclusive outlets are
20% as compared to 17.14% visi coolers of Coca-Cola. Percentage of
outlets having own visi coolers is 49.52% and percentage of outlets
having no visi coolers is 4.76%. Percentage of outlets having both
Pepsi and Coca-Cola is 8.57%
0. Signage:
SignageNo.Percentage
Only Pepsi signage2019.05%
Only Coke signage1413.33%
Both signage21.90%
No signage6965.71%
Total105100%
Pepsi signage is 19.05% as compared to that of Coca-Cola i.e.
13.33%. Number of outlets having both Pepsi and Coca-Cola signage
is very less (1.90%) and 65.71% outlets having no signage.
8. When any one comes to your shop which brand of soft drinks
does he/she demand? ProductsNo.Percentage
Pepsi3735.24%
Coca-cola4845.71%
Others2019.05%
Total105100%
37 (i.e. 35.24%) retailers out of 105 say that customers demand
Pepsi products, when they come to the shop.
1. Which FACTOR affects sales most?FactorsNo.Percentage
Advertisement3735.24%
Schemes2725,71%
Presence1817.14%
Taste109.52%
Price87.62%
Others54.76%
Total105100%
Most of the retailers were agreed that advertisement affects
sales most. Some were agreed on schemes given. Only 7.62% retailers
are agreed with price as an effective tool.
1. PROMOTIONAL ACTIVITIES that affect sales most
ActivitiesNo.Percentage
Free bottle scheme6259.04%
Prize2120%
Discount1716.19%
Others54.76%
Total105100%
It is clear that free bottle scheme is the most popular
promotional activity that affects sales volume. 59.04% retailers
were agreed with that scheme. While 20% retailers agreed with
prize.
1. MEDIUM that affects sales most
MediumNo.Percentage
Television3836.19%
Magazine/Newspaper109.52%
Display2220.95%
Wall Paintings/Hoardings3533.33%
Total105100%
Wall paintings and hoardings capture 33.33% of markets as a
medium responsible for effecting sales volume. Display as a medium
effects 21%. Newspapers and magazines are about 9.52% and
television is 36.19%
Do the retailers think that aggressive advertising or scheme
further increase the sales volume of Pepsi? No.Percentage
Yes8176.14%
No1616.23%
None87.63%
Total105100%
Majority of retailers (i.e. 77.14%) is in favor of aggressive
advertising and schemes for further increases the sales volume of
Pepsi. 15% retailers are against of it and 8% cant say
anything.
1. ADVERTISING:Different advertising activities practiced by
Pepsi have great impact in consumers. Following data show the
impact.
No.Percentage
Affected 7370%
Indifferent3230%
Total105100%
70% of people were saying that the advertising has impact on
consumers, but rests were not satisfied with it.
1. PERSONAL SELLING:
Retailers who are affected
No.Percentage
Affected6360%
Indifferent4240%
Total105100%
Most of the retailers are affected by Personal selling, while
some are unaffected.
1. PUBLIC RELATION AND PUBLICITY: The extents to which buyers
are affected with publicity and public relation are shown
below:No.Percentage
Greater6360%
Good2220%
Some1010%
Indifferent1010%
Total105100%
The impact of Public relation and Publicity in sales improvement
is very good. Only 10% retailers are unsatisfied with public
relation and publicity.
. 1. PET BOTTLES available
Pet BottlesNo.Percentage
Pepsi2019.05%
Coca cola3028.57%
Both5552.38%
Total105100%
It is clear that most of the outlets having more no. of both
products pet bottles available in their shops. 52% retail outlets
having both company pet bottles available.
FINDINGS
1. Pepsi is second largest soft drink & coke is first.1. The
total market share of Pepsi is 39.19% & that of Coca-Cola is
54.69%, and others have 6.13%.1. The total percentage of exclusive
outlets of Pepsi is 5.71% and that of Coke is 11.43%.1. The total
percentage of visi-coolers of Pepsi is 20% and Coke is 17.14% &
both Pepsi & Coke is 8.57% and 49.52% is own.1. The total %
signage of Pepsi is 19.05% & Coke is 13.33%, both Pepsi &
Coke 1.90% & no signage is 65.71%.1. The medium that affects
the sales most are Television-36.19%, Magazine/NewsPaper-9.52%,
Display-20.95% and wall Paintings & Hoardings-33.33%.1. 77.14%
retailers think that aggressive advertisement or scheme further
increase the sales volume of Pepsi.1. The promotional activities
that affect the sales most are Free bottle scheme-59.04%,
Prize-20%, Discount/Carate-16.19% & other promotional
activities 4.76%.1. 35.24% retailers agreed that advertisement
affects sales most, while 25.71% agreed with schemes, 17.14% with
presence of the products, 9.52% with tastes, and 8% with price.
SUGGESTIONS & CONCLUSIONS
SUGGESTIONS
The following factors I found to be worthy for consideration by
the management:1. The company should establish at least one
warehouse in each and every district headquarters for easy delivery
of soft drinks. 1. Tricycles can be installed at various places
like parks, important chowks and at the citys commercial centers,
during the peak hours, care should be taken that soft drinks in the
ice-box are always chilled and ice readily available.1. Like
Fruity, Pepsi Foods Pvt. Ltd. should also introduce tetra pack
(disposable pack) for its various brands. 1. Time to time survey
about the companys strengths and weaknesses is very much essential
so that it can improve its service & quality. 1. Company
should, try to project quality superiority into the minds of
customers. It will last long and will pay for ever.
CONSLUSIONS
1. Pepsi has the entire flavor i.e. Lemon, Orange, Mango in the
market and its market share is comparatively lower than that of
Coke. 1. The majority of the retailers deal in all brands of Pepsi
and Coca-Cola.1. The major problem faced by the distributor is the
shortage of supply particularly of pet bottles. 1. Although the
Visi-cooler, Sign board/Display rack and Glass strength provided by
Pepsi are more than Coke but still there are number of retailers,
who are either not having these or others have provided them.
3
