WEEKLY REPORT-1

By,

NAGENDAR SINGH,

ROLL NO:2T3-36(NRP); TPS-A

FACULTY GUIDE: Dr. N C Rajya Lakshmi (Professor & Associate Chairperson)

EMAIL I.D: rajyalakshmi@ssim.ac.in

INDUSTRY GUIDE: Mr. Vijay Rayangoudar

DESIGNATION: Franchise Operations -General Manager

EMAIL I.D:vijay.rayanagoudar@pepsico.com

PHONE NO: 9176454746

WEEKLY REPORT-4 “TO FORMULATE COST EFFECTIVE SALES PROMOTION STRATEGIES

FOR ACQUAFINA BULK WATER SALES FOR RETAIL SECTOR IN HYDERABAD”

SNO. DESCRIPTION OF THE TASKS

4.1 DRAFT OF REPORT ON ORGANIZATIONAL STUDY

BASIC DETAILS OF THE ORGANIZATION:

PepsiCo Inc. is an American multinational food and beverage corporation

headquartered in Purchase, New York, United States, with interests in the

manufacturing, marketing and distribution of grain-based snack foods, beverages, and

other products. It has a product portfolio of 22brands and as of January 22, 2012

PepsiCo's product lines generated retail sales of more than $1 billion each. The

company's products were distributed across more than 200 countries, resulting in

annual net revenues of more than $65 billion. Based on net revenue, PepsiCo is the first

largest food and beverage business in the world. Within North America, PepsiCo is

ranked (by net revenue) as the largest food and beverage business.

Indra Krishnamurthy Nooyi has been the chairperson and chief executive officer of

PepsiCo since 2006, and the company employed approximately 274,000 people

worldwide as of 2013. The company's beverage distribution and bottling is conducted

by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC 2080

(beverage) company.

Establishment of the Corporate:

PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay

Inc. The company reports sales of $150 million and has 19,000 employees. PepsiCo

entered India in 1989 and in a short period, has grown into one of the largest food and

beverage businesses in the country. PepsiCo growth in India has been guided by its

global vision of “Performance with Purpose”.

Mission and Vision: At PepsiCo, we believe being a responsible corporate citizen is not

only the right thing to do, but the right thing to do for our business.

Mission: Its mission is to be the world's premier consumer Products Company focused

on convenient foods and beverages. They seek to produce financial rewards to

investors even as they provide opportunities for growth and enrichment to its

employees, business partners and the communities in which they operate. And in

everything they do, they strive for honesty, fairness and integrity.

Vision: PepsiCo's responsibility is to continually improve all aspects of the world in

which they operate – environmental, social, economic – creating a better tomorrow

than today.

Their vision is put into action through programs and a focus on environmental

stewardship, activities to benefit society and a commitment to build shareholder value

by making PepsiCo a truly sustainable company.

Performance with Purpose

At PepsiCo, they are committed to achieve business and financial success while leaving

a positive imprint on society – delivering what they call Performance with Purpose.

Their approach to superior financial performance is straightforward–drive shareholder

value.

Products of the Organization:

PepsiCo has a Product Portfolio of 22 products Worldwide and 16 brands in India.

FOODS include: Cheetos, Kurkure, Lay’s, Lehar Namkeen, Quaker Oats, Uncle Chips

BEVERAGES include: 7UP, Aquafina, Duke's, Gatorade, Mirinda, Mountain Dew,

Nimbooz, Pepsi, Slice, Tropicana

Targeted Customers:

THEORETICAL FRAME WORK:

Demographics:

Age – more than 12 years

Income – more than INR 20,000

Generation - Generation Y

Psychographic:

Personality – Sincere, Competent, Sophisticated

Life Style – Health Conscious, Hygiene Sensitive

Behavioral:

Readiness Stage – Informed/interested

Attitude toward the product – Positive

- Aquafina target market is all the generation Y individuals who are Health Conscious,

Hygiene Sensitive.

Target market for 20 liter water jars in non IT/ITES companies are the companies which

have good number of generation Y employees, maintaining good hygiene factors for

the employees and organizations which are quality, employee health conscious rather

than cost conscious.

Competitors to the products/services :

IN THE GLOBAL MARKET: Its primary competition includes Aqua (Indonesia), Aqua

Minerale (Greece), Dasani (United States), Aqua Pura (United Kingdom) and Aqua

source (Australia).

IN THE LOCAL MARKET: Tough Competition is form Kinley, Bisleri, OxyRich, Dr.Water

and other local brands.

ORGANIZATIONAL STRUCTURE:

According to PepsiCo’s SEC (Securities Exchange Commission) filings, it is a

multinational food and beverage company, present in more than 200 countries and

regions, organized in four business units:

1.PepsiCo Americas Foods (PAF),which includes Frito-Lay North America (FLNA), Quaker

Foods North America (QFNA), and all of the Latin American food and snack businesses

(LAF)

2.PepsiCo Americas Beverages (PAB), which includes all North American and Latin

American beverage businesses

3.PepsiCo Europe, which includes all beverage, food and snack businesses in Europe

4. PepsiCo Asia, Middle East and Africa (AMEA), which includes all beverage, food and

snack businesses in AMEA (PepsiCo, 2012).

PepsiCo is well known for its Pepsi beverage products. This multinational corporation is

also responsible for the production of Frito-Lay, Gatorade, and Tropicana and Quaker

products. Under Indra’s leadership, in November 2007 marked a change in the

company's organizational structure from two units to three.

As per the diagram above, PepsiCo is a decentralized structure with each markets and

business units independent to make decisions but they must uphold the organizations

policy and goals. PepsiCo is an adaptive organization, as they are continuously seeking

constant improvement and keeping new ideas in the marketplace while its products

progress along their life cycles.

PepsiCo has a decentralized organizational structure, with operational decisions made

within the separate business units while being governed by policies at the corporate

level.

DETAILS OF BOARD OF MEMBERS:

1.Zein Abdalla

President, PepsiCo

2.Saad Abdul-Latif Chief Executive Officer

PepsiCo Asia, Middle East and Africa

3.Albert P. Carey Chief Executive Officer

PepsiCo Americas Beverages

4.Brian C. Cornell Chief Executive Officer

PepsiCo Americas Foods

5.Marie T. Gallagher

Senior Vice President and Controller, PepsiCo

6.Thomas R. Greco Executive

Vice President, PepsiCo; President, Frito-Lay North America

7.Enderson Guimaraes

Chief Executive Officer, PepsiCo Europe

8.Hugh F. Johnston Executive

Vice President and Chief Financial Officer, PepsiCo

9.Mehmood Khan

Executive Vice President, PepsiCo Chief Scientific Officer, Global Research and

Development

10.Indra K. Nooyi

Chairman and Chief Executive Officer, PepsiCo

11.Larry Thompson

Executive Vice President, Government Affairs, General Counsel and Corporate

Secretary

12.Cynthia M. Trudell

Executive Vice President, Human Resources and Chief Human Resources Officer,

PepsiCo

DETAILS OF ORGANIZATIONAL LEADERSHIP:

1.Indra K. Nooyi

Chairman and Chief Executive Officer, PepsiCo

2.Zein Abdalla

President, PepsiCo

3.Albert P. Carey

Chief Executive Officer, PepsiCo Americas Beverages

4. Sanjeev Chadha

Chief Executive Officer, PepsiCo Asia, Middle East and Africa

5.Marie Gallagher

Senior Vice President and Controller, PepsiCo

6.Tom Greco

President, Frito-Lay North America

7. Hugh F. Johnston

Executive Vice President and Chief Financial Officer, PepsiCo

8.Dr. Mehmood Khan

Executive Vice President, PepsiCo Chief Scientific Officer, Global Research and

Development

9.Larry Thompson

Executive Vice President, Government Affairs, General Counsel and Corporate Secretary

10.Cynthia M. Trudell

Executive Vice President, Human Resources and Chief Human Resources Officer,

PepsiCo

ORGANIZATIONAL CHART OF PEPSICO, INDIA ( HYDERABAD BRANCH):

I’m placed in the marketing department of the company in Hyderabad branch for

working on Aquafina sales and promotion.

The organizational structure of the Hyderabad based company is as follows:

The basic job descriptions of the top people concerned are:

1.Indra Nooyi,(PepsiCo Chairman and Chief Executive Officer):

1. Ms. Indra K. Nooyi has been the Chairman and Chief Executive Officer of PepsiCo, Inc.

since May 2, 2007 and October 1, 2006 respectively.

2. Ms. Nooyi served as the President of PepsiCo, Inc. since May 2001, its Chief Financial

Officer and Senior Vice President since February 2000 and also served as its Senior Vice

President of Strategic Planning, Corporate Strategy and Development from 1994 to

2000.

3. She was responsible for PepsiCo's worldwide strategic planning function, including

developing and coordinating business plans for PepsiCo's operating divisions.

4. Ms. Nooyi served as Vice President and Director of Corporate Strategy and Planning

at Motorola Solutions, Inc. (also known as Motorola Inc.). Prior to joining PepsiCo, she

spent four years as Senior Vice President of Strategy, Planning and Strategic Marketing

PepsiCo, Inc. since May 2001.

She serves as a Director of U.S. Soccer Federation, Inc. She serves as a Director of the

serves as a Trustee of The Yale Corporation.

5. She serves as a Member of International Advisory Board at Planet

serves as a Director of the PepsiCo Foundation, US-China Business Council, Inc., Catalyst

Inc. and Loctite Corp. She served as a Director of The Federal Reserve Bank of New

York. 6. She served as a Member of Advisory Board at The Yale School of Management.

She served as Member of Special Advisory Board at PepsiCo, Inc.

7. She served as an Independent Director of Motorola Solutions, Inc. from 2002 to May

7, 2007.

8. She served as the Chairman of the Board of U.S.-India Business Council. She serves as

a Director of U.S.-India Business Council.

9. She serves as Successor Fellow at Yale Corporation and is on the Advisory Board of

Yale University President's Council of International Activities.

10. She served as a Trustee of Asia Society. Ms. Nooyi graduated from Madras Christian

College in India with a degree in Chemistry, Physics and Math and earned a Master's

Degree in Finance and Marketing from the Indian Institute of Management in Calcutta

and a Master's Degree in Public and Private Management from Yale University's School

of Organization and Management.

Mr. Vijay Rayangoudar, Franchise Operations -General Manager:

He is my corporate mentor who is the General Manager of the Franchise of PepsiCo

located in Hyderabad. He is responsible for various activities in Hyderabad. His job

description is as follows:

1. He is responsible for the business development operations in Hyderabad

2. He is responsible for managing various business operations of Hyderabad.

3. He takes care of the promotional operations of various brands in Hyderabad.

4. He has to make sure the brand value is maintained throughout his role in Hyderabad.

Environment(Political, Economic, Social, Technological, Legal):

POLITICAL:

- There are various political parties protesting against the pricing of mineral water.

- The government imposed price ceiling on the bottled water

ECONOMICAL:

- There is an increase in per capital income

- Most of the population is of middle and upper middle class

- Expansion of multinationals, IT, BPO companies in 1 and 2 tire cities

SOCIAL:

- Bottled water is previously considered as a status symbol

- In these days Bottled water is the only source of purified drinking water

- Increased health consciousness among the population

TECHNOLOGICAL:

- The bundling of technologies like distillation, reverse osmosis, activated carbon filter

etc. helps in better quality of water

- Recycling of Jars and pet bottles helps in reducing environmental pollution

SWOT Analysis of the Corporate:

STRENGHTS:

1. One of the most popular and globally recognized brands in foods and beverages

2. One of the most diversified product portfolio

3. Popular subsidiary brands like Frito Lay, Gatorade, Pepsi, Quaker, Tropicana, and

Yum! Brands, etc.

4. Global reach with presence in over 200 countries

5. An employee strength of around 300,000 people

6. CSR through PepsiCo Foundation, which works in the sector of education, health,

water conservation, education etc.

7. Pepsi Refresh Project that funds new ideas or ventures that have the potential to

benefit the society

8. Strong and efficient supply chain network, ensuring that all the products are

available even in the most remote places

9. Excellent branding and advertising with global celebrity as brand ambassadors

10. Tie-ups, sponsorships with global sports events, music concerts, etc.

WEAKNESS:

1. Strong competition in the aerated drinks segment from Coca Cola means high brand

switching

2. Cases against products have been blown out of proportion, thereby affecting brand

image.

OPPORTUNITIES:

1. Increase penetration into developing countries and capture their market

2. Increase its product portfolio by acquisition of other brands

3. To expand the Yum! Brands eatery in untapped countries and regions like tier 2 cities

4. To improve its brand image by involving in more CSR activities to benefit the locals

THREATS:

1. Health consciousness amongst people can take a toll on its aerated drinks and

snacks food market.

2. Compliance with different government regulations and norms in different countries

3. Inflation, economic slowdown and instability causes decline in the purchasing power

of consumers

4. Strong competition from other brands in each segment of its operation

4.2 Status of the given Goals and Targets & Fulfillment (with reference to 1.2, 2.2 &3.4)

:

1. In this week I had been to various retail outlets. I even met the different types of

retailers. Retailers who sell Aquafina along with other products and retailers who are

completely into bulk water sales (called FAT DEALERS).

2. Then I knew the importance of visibility to a product like Aquafina.

3. Then I framed a questionnaire that would help me gather the facts that are required

to the understand the promotions used in the retail segment

4. I am still in the analyzing stage where I’m going to:

a) Gather all data required for knowing the present promotion tools

b) Find the competitors promotional strategies

c) Analyze which promotional strategy is cost effective to the retailers and PepsiCo and

why.

4.3 Status of Research plan and Interaction with Faculty Guide (with reference to 2.4

&3.6) :

Research Title:

There was a change in my research title due to the complexity of the research work and

due constraint of time. So my corporate mentor simplified my title to the below one.

“To formulate cost effective sales promotion strategies for Aquafina (bulk water

sales) for retail segment in Hyderabad”

Research Objectives:

As there is change in my research title, my objectives also changed accordingly:

1. To formulate cost effective sales promotion strategies for retail segment:

My objective is to formulate cost effective sales promotion strategies for 20ltr Aquafina

jars for retail. I used Trade promotions, a tool used to persuade resellers to carry our

brand, give it visibility, promote, advertise it and push it to customers formulated cost

effective sales promotion strategy by identifying costs and offering price-offs,

allowances, by giving retailers free specialty advertising items that carry company’s

name - such as pens, pencils, calendars, paper weights, memo pads etc. as mentioned

earlier.

2. To maximize bulk water sales:

This is done by interacting with various retailers and fat dealers and analyzing their

need and motivating them to increase the visibility of Aquafina jars for better sales. I

am also finding out the various promotion tools adopted by the retailers for promoting

the product.

3. To evaluate the current promotion tools adopted by the retailers and thereby

identifying competitors promotional strategies :

For this I have prepared a questionnaire that would enable to gather the relevant data.

I am finding the basic difference between the competitors and PepsiCo’s promotional

strategy.

Research methodology:

Introduction of the problem: A Study to formulate cost effective sales promotion

strategies for Aquafina, bulk water sales for retail segment in Hyderabad.

Research design: I selected the combination of both Descriptive and exploratory

research design as mentioned earlier.

Sampling design:

I. Population:

Retail Outlets using 20 liter water jars for sales purpose in Hyderabad.

II. Sample Unit:

Retail Outlets in Hyderabad

III. Sample size:

Expected sample size is 30 Respondents.

IV. Sampling method:

Cluster Sampling Method will be used to conduct this research. The clusters given to

me are:

1.Old city, Hyderabad

2.Dilsukhnagar

3.Secunderabad

Data Collection method:

I. Primary Data :

Research Instrument: Questionnaire –

I have framed a standard questionnaire with the guidance of my corporate and faculty

guide. I’m in the process of collecting responses from the retail segment.

II. Secondary Data:

For the study: Internet is used for collecting secondary data and various magazines and

newspapers from which the data is collected

INTERACTION WITH THE FACULTY GUIDE:

I have been to college a quite number of times to meet my faculty guide and have been

reporting the progress of my work through calls. My faculty guide has given approval to

the questionnaire and is aware of the tasks that I have done so far.

I could not interact with the faculty guide on a continuous basis due to the nature of my

job. But I made it sure that I keep her posted regarding my progress.

4.4

Self- Assessment with respect to performance in Training & Learning thereof :

In this week, I have learned many new aspects such as:

1. FAT DEALERS are the retailers who completely deal with one kind or brand of a

product

2. The retail segment needs a completely different approach than the corporate sector

which I have visited last few weeks

3. Importance of visibility to a product and its promotion

4. Retail segment high requirement of profit margin which is a major thing to be kept in

mind while promotion.

5. The procedure to formulate the questionnaire. My corporate mentor has advised me

that a questionnaire should consist of the following:

WHAT WHY HOW

SALES DISPLAY

PROMOTION INTEREST QUANTITY PER SHARE

VISIBILITY SALES INCENTIVES

SELF ASSESSMENT:

I have become more familiar with the market. I know how to approach them as a

representative of Aquafina. I became flexible with my work and I’m able to organize my

work effectively. It had increased the scope of my knowledge to a great extent. My

corporate mentor’s experience and his guidance are helping me to view the potential

market which gives me the confidence to achieve my goals.