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Shri Jairambhai Patel Institute of Business Management & Computer Application A Summer Project on Awareness & Utilization Of Pepsi Asset in East Ahmedabad {In partial fulfillment of requirement of MBA program 2008-10 of Gujarat University, Ahmedabad} With PepsiCo India Holding Pvt. Ltd. Ahmedabad. Submitted by: Shahejad Gujarati roll no. 17(a) Shreedhar Trivedi roll no. 57(b) Submitted to: I. PepsiCo India Pvt Ltd. Page 1

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this report may help you to use market research and analysis of various statistics techniques. For more help you can contact me on my email id or mob no.- Shahejad Gujarati+91-9974088404+91-9904412505

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Page 1: PepsiCo Report

Shri Jairambhai Patel Institute of Business Management & Computer Application

A

Summer Project on

Awareness & Utilization

Of

Pepsi Asset in East Ahmedabad

{In partial fulfillment of requirement of MBA program 2008-10 of Gujarat University, Ahmedabad}

With

PepsiCo India Holding Pvt. Ltd.

Ahmedabad.

Submitted by:

Shahejad Gujarati roll no. 17(a)

Shreedhar Trivedi roll no. 57(b)

Submitted to:

Shri Jairambhai Patel Institute of Business Management & Computer Application (Post

Graduation Center of Gujarat University), Gandhinagar

I. PepsiCo India Pvt Ltd. Page 1

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Shri Jairambhai Patel Institute of Business Management & Computer Application

PREFACE

Practical training is a part of every professional course. Theoretical concepts get relevance only when they are practically implemented. Practical training gives a glimpse of real picture of any job.

Practical training, which is a part of management studies, intends to provide a student with sufficient knowledge to develop an equation to connect theory and practical. As a part of partial fulfillment of the Course M.B.A. (Master of Business Administration), the candidate is required to undertake a project that would help him to enhance his knowledge.

It is with great sincerity and enthusiasm that we take up the challenge that this field has placed before us and hope to succeed with guidance from our professors.

I. PepsiCo India Pvt Ltd. Page 2

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Shri Jairambhai Patel Institute of Business Management & Computer Application

ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude to all esteemed people who helped me in the preparation of this project which has been a great learning experience for me.

First of all I would like to thank Mr. Irfan Sheikh (Asst. Manager- Sales Development) PepsiCo India Holdings Pvt. Ltd, Ahmedabad territory, for giving me this opportunity to work on the project ‘AWARENESS & UTILIZATION OF PEPSI ASSETS (VISICOOLERS)’ which has enabled me to get an insight into the Beverage Industry & also gave an opportunity to study aspects such as Brand Advertising.

I am thankful to Prof. (Dr.) S.O. Junare, Director Shri Jairambhai Patel Institute, and Prof. Nisarg Joshi, placement coordinator who gave me the opportunity to work with PepsiCo India Pvt. Ltd. I am also thankful to Prof. (Dr.) Harishchandra Rathod to guide us during this project. I respect the precious knowledge obtained from my Professors at SJPI PGIBM which helped me practical during my training program.

Lastly, I am highly obliged to all those who have helped us directly or indirectly in successful completion of this project.

Shahejad Gujarati Shreedhar Trivedi

Date:

Place:

I. PepsiCo India Pvt Ltd. Page 3

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Shri Jairambhai Patel Institute of Business Management & Computer Application

EXECUTIVE SUMMARY

This project is focused in measuring the utilization of Pepsi’s Visi coolers in Easter Ahmedabad , as the title suggests the project based on the Increasing product visibility for the company’s products in the Ahmedabad city. This is the project that not only involves measuring the utilization of Visi coolers but also to rate product visibility in the market. This helps us in analyzing that how presentation of the product does play an important role in the buying decision of the consumers.

This project is about conducting a survey on Pepsi Asset Utilization. The project makes survey of every retailer of East Ahmedabad which sells soft drink at their shops. The main aim behind the survey is to identify the asset utilization level in the market, thereby rate product visibility. Efforts have been made by us to cover maximum possible retailers which have Pepsi Asset or those which keep Pepsi but don’t have Asset. The focus was also made on discovering the prospective retailers interested in keeping Visi coolers.

This report gives a picture of the present market position of the Pepsi cola with their rivals. The report also presents details regarding under utilization of the asset by retailers. We have tried to find out the grievances which are prevailing in the retailers of Pepsi. Their complains have been voiced which will help company in overcoming their weakness and hence improve their sales. We have also tried to find out overall satisfaction of the retailers in respect to delivery services provided by the Pepsi.

To accomplish this project we designed a questionnaire which was circulated with each retailer. This questionnaire consists of variety of questions intended for finding out all the characteristics enlisted above. This questionnaire was filled by us with the inputs provided by the retailers.

I. PepsiCo India Pvt Ltd. Page 4

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Shri Jairambhai Patel Institute of Business Management & Computer Application

CONTENTS OF PROJECT

PREFACE 2

ACKNOWLEDGEMENT 3

EXECUTIVE SUMMARY 4

1 Introduction to Beverage Industry & PepsiCo

i. Company profile

ii. PepsiCo journey & History

iii. Regional hierarchy

iv. Products offer by PepsiCo India 13

v. PepsiCo Global Brands 15

06

2 Introduction to project

i. Explanation of title 19

ii. Objective of project 20

20

3 Research Methodology

i. Research Instruments

ii. Questionnaire

iii. Time Frame

22

4 Data Analysis & Data Interpretation 29

5 Listing Facts/ Problems of retailers 32

6 SWOT Analysis 34

7 Recommendations & Conclusion 36

8 Bibliography 38

I. PepsiCo India Pvt Ltd. Page 5

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Shri Jairambhai Patel Institute of Business Management & Computer Application

1.INTRODUCTION TO BEVERAGE INDUSTRY & PEPSICO

India is one of the top five markets in terms of growth of the soft drinks market. The per capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum in the year 2003. It is very low compared to the corresponding figures in US (600+ bottles per annum). But being one of the fastest growing markets and by the sheer volumes, India is a promising market for soft drinks. The major players in soft drinks market in India are PepsiCo and Coca-Cola Co. like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot and Thumps-Up when it entered Indian market second time. Pepsi Co’s soft drink portfolio consists of Miranda and 7Up along with Pepsi. The market share of each of the company is more or less the same, though there is a conflict in the estimates quoted by different sources

The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malice acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc.

There are others like Dabur Foods, Parle foods, Manikchand Beverages and Amul that also operate in the niche but none of them have as large a portfolio as the above mentioned companies. Both Coca cola and Pepsi apart from being involved in the cola wars have also declared war among other products, like juices and bottled water. The actual beverage market is being dominated by tea and coffee drinkers and the current customers are diverting to places like Café coffee day, Barista, Tea centers, etc. But the Beverage companies are even trying to even foray in to these areas by launching their versions of the products.

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The PepsiCo Group was one of the earliest entrants into the Indian Beverage Markets. Though due to some political hindrances PepsiCo had to leave the Indian shores in early 1985, it again entered the beverage market in 1990 with the globalization trends picking up. Since then it has been 17 years in the Indian market and the company has managed to capture a market share of 52% all over India. With a product portfolio of about 17 strong brands the company stands at a very strong place in the Indian market. With such a huge portfolio we can easily make out that the company has a good reputation with the citizens of India.

In 1991 when PepsiCo entered into India, it entered into a joint venture with Lehar Beverages and started with the name Lehar Pepsi. Slowly and steadily PepsiCo India Holdings Pvt Ltd took over the full business of the company and now it’s totally under the control of the parent company. Pepsi today is a number one company in India in the Foods and Beverages Industry. The company has come through many ups and downs, like the pesticide issue recently, but has deliberately emerged as a successful candidate with the help of its strong brand image and public support. The company has already created a strong image in the market with its products like Pepsi, Mirinda, Slice, 7Up and is trying to strengthen it further with products like Tropicana and Gatorade.

I. PepsiCo India Pvt Ltd. Page 7

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Shri Jairambhai Patel Institute of Business Management & Computer Application

COMPANY PROFILE

PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of more than $39 billion and more than 185,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories. In 1990 when PepsiCo entered into India, it entered into a joint venture with Lehar Beverages and started with the name Lehar Pepsi. Slowly and steadily PepsiCo India Holdings Pvt. Ltd. took over the full business of the company and now it’s totally under the control of the parent company. Pepsi today is a number one company in India in the Foods and Beverages Industry. The company has come through many ups and downs, like the pesticide issue recently, but has deliberately emerged as a successful candidate with the help of its strong brand image and public support.

PepsiCo India and its partners have invested more than U.S. $700 million since the company was established in the country in 1989. In India, PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors. PepsiCo serves to nourish consumers with a range of products from treats to healthy eats, to offer products that deliver joy as well as nutrition – and always, good taste.

PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks – Tropicana, Tropicana Twister and Slice. Some local brands – Lehar Everest Soda, Dukes Lemonade and Slice Mangola complete its diverse spectrum of brands. The Company has also made its way into the hearts of the Indian public by sponsoring their favorite shows and also their favorite game.

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Shri Jairambhai Patel Institute of Business Management & Computer Application

PEPSICO’S JOURNEY

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in Bethesda, Maryland. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan.

HISTORY

Pepsi was first made in New Bern, North Carolina, in the United States in the early 1890s by pharmacist Caleb Bradham. In 1898, "Brad's drink" was changed to "Pepsi-Cola" and later trademarked on June 16, 1903.

The word Pepsi comes from the Greek word "Pepsi", which is a medical term, describing the food dissolving process within one's stomach. It is also a medical term that describes a problem with one's stomach to dissolve foods properly.

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PEPSICO INDIA HOLDINGS PVT LTD

Indra Nooyi [Chairman & CEO – PepsiCo International]

Sanjeev Chadha [CEO – PepsiCo India Beverages]

India Headquarters: Gurgaon,Haryana

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PEPSICO MISSION

"To be the world's premier consumer Products Company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

PEPSICO VISION

"PepsiCo's responsibility is to continually improve all aspects of the world in which co. operate – environment, social, economic – creating a better tomorrow than today."

PepsiCo’s 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.

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Shri Jairambhai Patel Institute of Business Management & Computer Application

This is how we carry out our commitment. We must always strive

to:

Care for customers, consumers and the world we live in. We are driven by an intense, competitive spirit in the marketplace, but we direct this spirit toward solutions that achieve a win for each of our constituents as well as a win for the corporation. Our success depends on a thorough understanding of our customers, consumers and communities. Caring means going the extra mile. Essentially, this is a spirit of growing rather than taking.

Sell only products we can be proud of. The test of our standards is that we must be able to personally endorse our products without reservation and consume them ourselves. This principle extends to every part of the business, from the purchasing of ingredients to the point where our products reach the consumer's hands.

Speak with truth and candor. We speak up, telling the whole picture, not just what is convenient to achieving individual goals. In addition to being clear, honest and accurate, we take responsibility to ensure our communications are understood.

Balance short term and long term. We make decisions that hold both short-term and long-term risks and benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable growth.

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Win with diversity and inclusion. We leverage a work environment that embraces people with diverse backgrounds, traits and different ways of thinking. This leads to innovation, the ability to identify new market opportunities, all of which helps develop new products and drives our ability to sustain our commitments to growth through empowered people.

Respect others and succeed together. This company is built on individual excellence and personal accountability, but no one can achieve our goals by acting alone. We need great people who also have the capability of working together, whether in structured teams or informal collaboration. Mutual success is absolutely dependent on treating everyone who touches the business with respect, inside and outside the company. A spirit of fun, our respect for others and the value we put on teamwork make us a company people enjoy being part of, and this enables us to deliver world-class performance.

I. PepsiCo India Pvt Ltd. Page 13

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PepsiCo regional hierarchy

I. PepsiCo India Pvt Ltd. Page 14

Unit Manager

Territory Development

Manager

Marketing Development

manager

Assistant Sales and

Distribution manager

Development

Manager

Marketing Development

Coordinator

Customer Executives

Sales Executives

Sales Trainees

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Shri Jairambhai Patel Institute of Business Management & Computer Application

PRODUCTS OFFERED BY

PEPSICO INDIA

1. Pepsi2. Mirinda Orange

3. Mirinda Lemon

4. 7Up

5. Nimbooz

6. Mountain Dew

7. Slice

8. Pepsi Diet

9. Lehar Soda

10. Aquafina

11. Tropicana

12. Lehar Namkeen

13. Lays

14. Kurkure

15. Uncle chips

16. Tropicana Twister

Of all the Products listed above we had to cover the Beverage products, the products on which our project is actually concentrated on. Of the beverage products the brands highly famous among the Indians are Pepsi, Mirinda, and 7Up and Slice. PepsiCo has also created a benchmark in the Indian Quick bite market by launching some of the most famous brands in the country like Kurkure, Lays etc.

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Shri Jairambhai Patel Institute of Business Management & Computer Application

PEPSICO BEVERAGE BRANDS

I. PepsiCo India Pvt Ltd. Page 16

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PEPSICO GLOBLE BRANDS

PEPSI FRINTOLAY GATORADE

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TROPICANA QUAKER

Frito-Lay True North

Frito-Lay has cracked the nut aisle with True North, a contemporary line of 100 percent natural, great tasting nut snacks that are a good source of protein. By elevating the "simple nut" into three unique nut snacks – nut clusters, nut crisps and nut crunches – each True North variety offers consumers a different snacking experience fit for a wide range of occasions.

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Shri Jairambhai Patel Institute of Business Management & Computer Application

Mountain Dew Voltage

The people have spoken. Voltage has been elected the new Mountain Dew flavor line extension. Charged with raspberry citrus flavor and ginseng, Voltage will officially take office in January 2009 when it will begin appearing on store shelves nationwide.

Pepsi-Cola North America is the refreshment beverage unit of PepsiCo, Inc., in the United States and Canada. Its U.S. brands include Pepsi, Mountain Dew, and Aquafina, Sierra Mist, IZZE, SoBe, Mug, Tropicana Twister Soda, Tropicana Juice Drinks, Dole and Ocean Spray single-serve juices. The company also makes and markets North America's best-selling ready-to-drink iced teas and coffees, respectively, via joint ventures with Lipton and Starbucks.

From its humble beginnings over a century ago, Pepsi-Cola has grown to become one of the best-known, most-loved products throughout the world. Today, the company continues to innovate, creating new products, new flavors and new packages in varying shapes and sizes to meet the growing demand for convenience and healthier choices. Pepsi is constantly on the lookout for ways to ensure their consumers get the products they want, when they want them and where they want them.

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2. INTRODUCTION TO PROJECT

Project consists of survey of those retailers of east Ahmedabad city which has Pepsi Visicoolers at their premises. This survey intended to find out and rate the utilization of Visicoolers and also ensure visibility of the coolers.

Apart from this survey also intended to find out problems faced by retailers in sorting various issues like supply quantity and regular distribution done by the company. This survey is focused on improving the visibility of coolers by solving various problems faced by retailers. This project envisages helping the retailers in improving the sales of Pepsi by enhancing the visibility of the product through visibility.

EXPLANATION OF TITLE

Our survey contains mainly details of Visi Coolers (Pepsi Assets) in East Ahmedabad and the main purpose of project was to check the utilization of it in Ahmedabad.

Company provides visi coolers to retailers with reasonable deposit to promote product, but many retailers did not use it effectively. So Company decided to get information from market about this situation and find out the reality.

“Awareness & utilization of Pepsi Assets in East Ahmedabad” describes contain and objective of the research. Company divided Ahmedabad in two parts in east and west, and company assign us East Ahmedabad. Company invests so much money after promotion with the help of Visi Coolers and Company wants to utilize that money. So, it is necessary to utilize Visi Coolers.

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OBJECTIVE OF PROJECT

Main objective of project to get some information from market as company find some problem in market regarding visi cooler user and competition.

To study the overall condition of soft drinks market in Ahmedabad To check the utilization of visi coolers (Pepsi Asset) at retail shops. Ascertain the level of visibility of coolers. To measures satisfaction level of the retailers & find out reasons for

under utilization of coolers.

PROJECT ACTIVITIES

Conduct survey of retailers of East Ahmedabad.

Make observations on Utilization and Visibility of coolers at retailer

premises.

To rate Visibility of asset.

To enlist reasons for under utilization of asset.

To check overall satisfaction of retailers for services delivered by Pepsi.

To find retailers interested in keeping Visi coolers.

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3. RESEARCH METHODOLOGYSAMPLE DESIGN

UNIVERSERetailers who sell branded and non-branded soft-drink in eastern part of Ahmedabad. (Immaterial of size, turnover, sex, locality, age, etc.)

So, criteria for our universe were cold-drink seller in eastern Ahmedabad.

SAMPLING UNITAny retailers selling branded or non-branded carbonated soft-drink in eastern part of Ahmedabad.

Eastern part of Ahmedabad consists of:

Kalupur, Sarangpur, Raipur, Maninagar, Relief road, Laldarwaja, Khanpur, Geetamandir, Jamalpur, Shahalam, Astodia, Khokhara, Hatkeshwar, Naroda, Kubernagar, Saijpur, Hirawadi, Bapunagar, Krushnagar, Meghnaninagar, Naroda rd, Odhav, CTM, Soni-ni-chali, Nikol, Saraspur, Viratnagar, Vatva, Isanpur, Ghodasar.

SAMPLING SIZEList of total population was given by company, which contain 2000 outlets and target was to survey 10% of it. 200 were our prospectus out of which we cover 180 outlets.

SAMPLING METHODWe arrange our population of 2000 outlets in alphabetic order and then with the help of random number table we choose 200 samples, as we had to cover 10% of population as told by company, out of which we can cover only 180 outlets because of time constrain.

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RESEARCH INSTRUMENT

For any research work, data collection and its interpretation is very important thing. For data collection, many methods can be used. The most popular method for data collection in research work is questionnaire. We prepared questionnaire on the basis of demand of the project given by company. Our main target is to check awareness and utilization of Pepsi Assets in East Ahmedabad.

With the help of questionnaire we collect data from the market. After the collection of data for the interpretation and analysis we use SPSS software with the help of it we can calculate hypothesis and other statistical method to analyze the data.

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QUESTIONNAIRE

1. Do you sell Pepsi?

Yes No

2. Do you have visi-coolers?

Yes No

3. Are you being informed about the different schemes of Pepsi?

Yes. No

4. Rate your overall Satisfaction about company.

Where,

I. PepsiCo India Pvt Ltd. Page 24

Not satisfied

at all

Moderately

dissatisfied

Moderately

satisfied

Satisfied

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Shri Jairambhai Patel Institute of Business Management & Computer Application

5. Tick mark (√) your opinion about PepsiCo.

Strongl

y Agree

Moderately

Agree

Moderately

Disagree

Strongly

Disagree

Neither

agree nor

disagree

Distribution

is

regular(on

time)

Supply

Quantity is

sufficient

(all brands)

Observations

6. Rate the Visibility of the of the Refrigerator of PepsiCo.

I. PepsiCo India Pvt Ltd. Page 25

Grade Percentage in visibility Achieved

A 75-100%

B 51-74%

C 25-50%

D 1-24%

E (there is no

refrigerator)

0%

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Shri Jairambhai Patel Institute of Business Management & Computer Application

7. Mark the Utilization of refrigerator for the purpose of storing PepsiCo

products.

Category Achieved

Perfect (100%)

Somewhat Perfect

Somewhat poor

Poor (100%)

8. Any Suggestions

PERSONAL DETAIL:

SHOP NAME: _______________________________________________________________________________

OWNER NAME: _______________________________________________________________________________

CONTACT NUMBER: __________________________________________________

SEX: Male: Female:

ADDRESS:

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TIME FRAME

On the first day of Internship i.e. 25th May, 2009 PepsiCo allocate us the project and give us the guidance for how to work. They explain us the whole project and it’s in and outs, they also provide us the information about the market and discuss main objective of the project.

For the further procedure of project, we have to prepare questionnaire. We prepare questionnaire and it take around 2 days and on 28th May 2009, we discuss our questionnaire with company executive and after some adjustment we go for pilot study.

For 3 days and 23 outlets we complete our pilot study on 1st Jun 2009. On pilot study we came to know that, 2 questionnaires were not useful and retailers also don’t response on that, so we deduct it from our questionnaire with the permission of company executive.

From 2nd Jun 2009 to 30th Jun 2009, we collect data from market and cover almost area of east Ahmedabad. During this collection of data we meet so many people and cover as many outlets as we can.

From 1st July 2009 to 5th July 2009, we prepare our report about our work what, we done and report of internship. On 6th July 2009 we submit all the things to Mr. Irfan Sheikh and get the certificate.

By this way, we complete 43 day of internship in company from 25th may 2009 to 6th July 2009.

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DATA ANALYSIS

For data analysis we used SPSS software and performed chi-square tests. We use hypothesis because, with the help of hypothesis we can know the relationship between two variables, and with the hypothesis we can say weather two variables are inter-related or not. And in our research there are problems and we wants to know the reasons of it. So, with the help of chi-square test we can know the reason of under-utilization of Pepsi Visicoolers.

We use SPSS software to check & calculate hypothesis. Because, with the help of SPSS there are less chances of mistakes and hypothesis can be easily calculated. We have taken significance level of .05 and confidence level of 95%.

This statistical method of analysis is largely used to find relationship and many companies use this method for their market survey and other research work.

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First test: STATING HYPOTHESIS

H0: There is no significance relationship between Utilization of Pepsi Visicoolers and supply quantity of Pepsi products delivered to retailers.

H1: There is a significance relationship between Utilization of Pepsi Visicoolers and supply quantity of Pepsi products delivered to retailers.

Solution:

CrosstabsCase Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percentutlization * Squantity 179 100.0% 0 .0% 179 100.0%

utilization * Squantity Crosstabulation

Squantity

Totalstrongly agreemoderately

agreeneither agree nor disagree

moderately disagree

strongly disagree

utlization perfect 13 23 0 0 4 40

somewhat perfect

13 42 19 8 0 82

somewhat poor

3 14 13 6 4 40

poor 2 5 5 3 2 17Total 31 84 37 17 10 179

Count

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)Pearson Chi-Square 38.206(a) 12 .000Likelihood Ratio 52.874 12 .000N of Valid Cases 179

a 9 cells (45.0%) have expected count less than 5. The minimum expected count is .95.

A low significance value (typically below 0.05) indicates that there may be some relationship between the two variables

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Second test: STATING HYPOTHESIS

H0: There is no significance relationship between Utilization of Pepsi Visicoolers and distribution service of Pepsi products delivered to retailers.

H1: There is a significance relationship between Utilization of Pepsi Visicoolers and distribution service of Pepsi products delivered to retailers.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percentutlization * distribution 179 100.0% 0 .0% 179 100.0%

utilization * distribution Crosstabulation

Distribution

Totalstrongly agreemoderately

agreeneither agree nor disagree

moderately agree

strongly disagree

utlization perfect 23 14 0 1 2 40

somewhat perfect

16 41 15 7 3 82

somewhat poor

5 17 12 3 3 40

poor 2 5 6 1 3 17Total 46 77 33 12 11 179

Count

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)Pearson Chi-Square 42.327(a) 12 .000Likelihood Ratio 44.905 12 .000N of Valid Cases 179

a 8 cells (40.0%) have expected count less than 5. The minimum expected count is 1.04.

A low significance value (typically below 0.05) indicates that there may be some relationship between the two variables

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INTERPRETATION

First test:

SINCE the Significance value is less than 0.05. So, there is some relation between two variables. The strength of this relation is weak.

Result:

So, the result is H0 is rejected. It means that there is a significance relationship between Utilization of Pepsi Visicoolers and supply quantity of Pepsi products delivered to retailers.

Second test:

SINCE the Significance value is less than 0.05. So, there is some relation between two variables. The strength of this relation is weak.

Result:

So, the result is H0 is rejected. It means that there is a significance relationship between Utilization of Pepsi Visicoolers and distribution service of Pepsi products delivered to retailers.

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Shri Jairambhai Patel Institute of Business Management & Computer Application

LISTING FACTS/PROBLEMS OF RETAILERS

After the survey of east Ahmedabad we came to know certain problem faced by retailer and the main reasons for dissatisfaction of retailer. It can be described as under:

MAJOR REASONS FOR UNDERUTILIZATION:

1. Delivery Problem:

Most of retailer complains about delivery which was low during peak season.

They also complain about shortage of products delivered.

2. Faulty Visi-Coolers:

Visi coolers weren’t working properly.

It consumed more electricity.

3. Stocking Multiple Products:

Retailers kept other perishable products which they stored in Visi coolers.

It’s because to save electricity bill.

4. Stopped Keeping PepsiCo’s Product:

Some Visi coolers were found fully empty as retailers stopped selling PepsiCo’s product.

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Shri Jairambhai Patel Institute of Business Management & Computer Application

MAJOR REASONS FOR DISSATISFACTION:

1. Delivery problem:

Most of retailers complain about irregular delivery schedules.

Giving lesser quantity of products then demanded.

2. Schemes delivery problem:

Retailer face problem of being not informed about different schemes by salesman.

We observed that many small retailers don’t get good schemes compared to big outlets

Retailers complained about salesman’s personalizing the benefits of schemes.

3. Under cutting:

Co. have the policy to give more benefits to big outlet, because of that big retailer manipulates market by undercutting. They get more benefits and transfer it to small retailers, and small retailers purchase directly from big outlets and ignore to buy from Co.’s distributors, and it creates dissatisfaction of retailers and loss to Co. We can understand ‘undercutting’ with an example that we observed in market.

Co. had the scheme to give 4 bottles per caret to big outlet and 2 bottles per caret to small outlet. Now big outlet sell with the scheme of 3 bottles to small outlet, and both big as well as small outlets get the benefits of the undercutting.

But after discussion with Co.’s executive we came to know that Co. itself adopt this policy, because with the help of undercutting Co. saves the distribution expenses and can increase the number of retailers.

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Page 34: PepsiCo Report

Shri Jairambhai Patel Institute of Business Management & Computer Application

SWOT ANALYSIS

SWOT Analysis means analysis of Strengths, Weaknesses, Opportunities and Threats.

It is important for every company to analyze their SWOT, because this gives a complete picture of the performance of the company. The company comes to know where it has room for improvement in which area it has its mastery, what are the opportunities which it has to grab and what are the threats that it has to face in near future.

SWOT Analysis of PepsiCo can be described as follows as per our survey.

Strengths:

Strengths of PepsiCo are:

Loyal Retailers are the main strength of the company, as in soft-drink market retailer can make big difference. And with the help of retailer any soft-drink company can increase its sales, and without support of retailers company cannot achieve its target sales. PepsiCo have the strong network of loyal retailers which is the one of the strongest strengths of the company.

Distribution Network of the company is state of the art, company have strong distribution wing, which covers every niche and corner of Ahmedabad city, even in remote area of city is covered by the distributors which allow PepsiCo’s product to reach to every people.

Product Line of the company is competent enough to compete with its main competitor which is Coca-Cola. Only in Drinks Company have more than 12 products, which provide better quality to people as well as better alternatives.

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Page 35: PepsiCo Report

Shri Jairambhai Patel Institute of Business Management & Computer Application

Weaknesses:

Weaknesses of PepsiCo are:

Delivery Problem which is created, because of shortfall in supply and which can be considers as biggest weakness of the company.

Service of company is reach to everywhere but main problem or weakness of the company is that it gives more important to big outlets and small outlets is being ignored, and there are many complains about sales executive with retailer, so it should be solve as soon as possible.

Opportunities :

Opportunities for company in near future can be:

Chances for New Prospects are there in Ahmedabad market as many new outlets are starting and many expansions is going on. So company should consider new prospects for more sales.

Tie-up with Business Organization is the common practice adopted by company, but as we observed in market there are many business organizations which are not covered by the company, if company will covered that area there is chance for more business.

Threats:

Threats from which company should be aware about, and consider during its strategic plan can be:

Coca-Cola as the biggest competitor of the company, company should have the watch on each and every steps taken by the Coca-Cola i.e. new products, schemes, expansion etc.

Unsatisfied Retailers should not be ignored, because as we know company’s business is done through these retailers. If the problem of the unsatisfied retailer will not solved immediately company can lose its business. There are also some retailers which stopped sale of PepsiCo’s product in this season because of problem of delivery.

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Page 36: PepsiCo Report

Shri Jairambhai Patel Institute of Business Management & Computer Application

RECOMMENDATIONS & CONCLUSION

After through survey of market we listed various facts in the topic above. IT is found that main reasons for under-utilization of Visicoolers are:

1) Irregular distribution

2) Inadequate quantity of the supply

3) Some retailers were dissatisfied because they were not conveyed schemes of Pepsi.

4) Some retailers were dissatisfied due to problems face by the company in the past.

Recommendations

Our recommendations to the company are

The company should improve it distribution schedule. There was massive complain about the delivery being not schedule timely. The company should review its distribution schedule. It is advisable that company sets its delivery schedule as per market demands so that retailers use Visicoolers to its optimum level.

The major reason for under-utilization of Visicoolers was found to be inadequate quantity supplied. This is a very serious problem because if the retailers don’t get the quantity that they demand they are likely to get switch to other brands. So company should try to avoid shortfall of quantity by proper planning and production of the various products.

The company should provide retailers attractive schemes and free gift to ensure that retailers gives full effort for improving sales by registering good market visibility of product. For this purpose company should adopt a Sales target strategy to retailers.

During the survey many retailers were found to be dissatisfied because of variety of reasons, company should try to solve this problem by appropriate counseling of such retailers.

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Page 37: PepsiCo Report

Shri Jairambhai Patel Institute of Business Management & Computer Application

Conclusion

This project has helped us a lot. We came across many aspects of beverage industry like,

How the beverage industry runs?

What are the factors that play important role in this industry?

We also came to know what are the “point of purchase” in this industry. It is very much important to maintain visibility in the market, since consumers buying decision very much depends upon products visibility. The main Mantra of this industry is

“Jo Dikhta hai who bikhta hai”

Hence it becomes very much important for the company to ensure continuous market visibility.

Through this project we came to know about important role of retailers in selling process. We also came to know about what are company’s as well as retailer’s efforts in increasing profitability and thereby increasing market share of the various products through increase in visibility of product by different means like Visicoolers, displays, and various promotional schemes. This project has helped us in understanding what are the difficulties and challenges faced by this industry. It was truly a learning experience for us. Since it gave us an outlook into corporate world.

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Page 38: PepsiCo Report

Shri Jairambhai Patel Institute of Business Management & Computer Application

BIBLIOGRAPHY

1. www.pepsico.com

2. Wikipedia.com

3. Marketing research- N.K.Malhotra

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