Sales & Distribution and Comparison between PepsiCo & Coca-Cola AHUTOSH DWIVEDI.docx

8/14/2019 Sales & Distribution and Comparison between PepsiCo & Coca-Cola AHUTOSH DWIVEDI.docx

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A SUMMER TRAINING PROJECT REPORT

ON

Sales & Distribution and Comparitive analysis

between PepsiCo & Coca-Cola Product offers(A study of the cola product offers in the city of Allahabad- UP, India)

Submitted To

Lloyd Institute of Management and Technology- Greater Noida- UP, for

the partial fulfillment of the degree of Masters of Business

Administration, from Mahamaya Technical University- NOIDA)

FACULTY GUIDE: SUBMITTED BY

DR. VIVEK KUMAR ASHUTOSH DWIVEDI

ROLL,NO:1217270018

Lloyd Institute of Management & Technology

Plot No-11,Knowledge park-ll,Greater Noida

U.P-201306


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ACKNOWLEDGEMENT.

I am very much thankful to Dr.VivekKumar Associate Professor at Lloyd institute of

Management& Technologyfor excellent guidance and also provided me with this great

opportunity to work organization.

I am grateful to PepsiCo for allowing me to undertake my summer training in the organization.

I take this opportunity to place on record my grateful thanks and sincere gratitude to Sarwesh

Mishrafield officer (Allahabad) who has given me this opportunity to conduct this project work

in organization. My study would not have been completed if I had not been able to get the

support and guidance of Mr.ShyamPrakash(MDM) and other employees of the organization.

I thank the ALMIGHTY,my family and friends for being with me during my project

work and motivating me to successfully completing the project.


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DECLARATION

I hereby declare that the project report entitledSales& Distribution

andComparative Analysis between PepsiCo.& Coca-Cola product

offersAt Lumbini Beverage Ltd.Allahabad (U.P.). Under the guidance

of Dr. VivekkumarAssociate Professor, LIMT Greater Noida is the original

work done by me.

Submitted in partial fulfillment of the requirement for the degree of MBA

toLloyd Institute of Management and Technology, Greater Noida is my

original work and not submitted for the award of any other degree, diploma,

fellowship, or any other similar title or prizes.

Place: - Greater Noida ASHUTOSH DWIVEDI

Date:-_________


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CONTENTS

Name of Topic Page No.Executive summary 9

Chapter 1

Introduction 10-15

The company profile (PepsiCo) 16-20

Organizational Structure (LumbiniBeveragePvt.Ltd.) 21-24

Product Profile 25-26

Pepsi Brand and Pack profile 27-31

Production Department 32-34

Product Positioning of PepsiCo 35

Pepsi Logos 36-40

Importance of Study 41

Introduction to the Study42-43

Chapter 2

Government policies 44-46

Marketing Mix 47-49


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Competitors 50-52

National & International Image 53-62

Future Planning 63-67

The RKJ group 68-69

Chapter 3

Objective of The Study 70-71

Improtance& Relevance of the study 71-75

Chapter 4

Research Methodology 76-79

Channel of distribution of LBPL 80-82

Inventory Decision 83-84

Distribution of Pepsi 85-88

Decesion Making For Channel of Distribution 88-89

Distribution Performance of Patna 90

Data Analysis and interpretation

~Study of product and their Pricing Strategy 91-92

~Interpretation of Outlets 93

~Market share 94

~Over all market share of PCI & CCX in Patna 95

~Market share of different Soft drink 96

~The Orange Flavor Soft drink 97

~Clear Lime Market Share 98

~Mango flavor Market Share 99

~Market share of Juice 100

~Percentage share of Chilling Equipment 101

~Percentage of Glow-Sign Board 102

~Percentage Share of Satisfied Distributors 103


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Limitation 104

SWOT Anaysis 105

Suggestion 106-108

Chapter 5Conclusion 109-110

Chapter 6-References 111

Chapter 7- Annexure

Questionnare 112-114


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PREFACE

Project is an integral part of the MBA degree curriculum and the students of management

have to go under a training session in a business organization for eight weeks to gain

some valuable practical knowledge in their areas of specialization to gain some working

experience and to have better interaction between industry and academics. The summer

training provides a student an opportunity to think, analyze and understand the real life

working environment which is a little bit different to normal theory classes.

Practical handling of problem gives perfection of knowledge. Our acquaintance with

principle of management can be accomplished only when we bring them in practice.

Learning is a continuous process. In other words, our plan of work should be definite and

goal-oriented. With this view in mind I decided to go for practical training in a concern of

repute like PepsiCo. Working with PepsiCo was a matter of pride for me. During the

project study in PepsiCo, I gained in terms of experience and knowledge. After

accomplishment of project I am sure that awareness and efficiency has gained

momentum.

Summer Training is a part of MBAProgramme. We student of MBA course are

required to undergo summer Training in any organization to gain some experience.

The project report titledSALES AND DISTRIBUTION; COMPARATIVE ANALYSIS

BETWEEN PEPSI AND COCA COLA PRODUCT OFFERS with special reference to

ALLAHABAD has been prepared after successful completion of project training with

PEPSICO COMPANY, in ALLAHABAD. Though I have tried to do it honestly and

sincerely and any weakness and shortcoming is unintentional.


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The main purpose of this study was to find out the Brand image of PEPSICOwith

different brands and whether the brand PEPSICO occupies a desired position. Further to

help the reader in understanding the findings, graphical representation, conclusions and

suggestions are also included, which is very much helpful for Lumbini Beverages Pvt.

Ltd., Allahabad to know where it stands in the soft drinks market. What is the market

share of Pepsi products and what Pepsi is doing against Coca-Cola?

The experience gained by me during that period which I anticipate will help me a lot in

the future.

ASHUTOSH DWIVEDI


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EXECUTIVE SUMMARY

This project titled SALES AND DISTRIBUTION, AND COMPARATIVE

ANALYSIS BETWEEN PEPSI AND COCA COLA PRODUCT OFFERS has been

prepared in the fulfillment of MBA degree provided by LLOYD INSTITUTE OF

MANAGEMENT & TECHNOLOGY, GREATER NOIDA.

Through my project I have tried my level best to bring to the knowledge of the

management of PEPSICO COMPANY the needs and the demands of its customers, its

retailers and distributors, so that some steps could be taken to satisfy those needs and

increase customers. The basic objective of this project was to find out the SALES AND

DISTRIBUTIONCOMPARATIVE ANALYSIS BETWEEN PEPSI AND

COCACOLA PRODUCT OFFERS of PEPSICO COMPANY IN ALLAHABAD.

The project also included the study of consumer preference, consumers loyalty, their

expectation and grievances from PEPSICO as well as demands of retailers. It includes

everything which affects the sale of the product of PEPSICO. This was done by detailed

market survey, which included visiting web worlds, web world expresses, retailers and

interaction with individual customers. The feedback of the retailers was taken by visiting

their respective outlets and the feedback of the customer is taken by interacting with them

at the retailers outlets.

Then finally the collected data was tabulated and analyzed and interpreted to drive

conclusion from them, which enabled me to give my suggestions.


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Chapter 1

INTRODUCTION

trademarked on June 16, 1903. There have been many Pepsi, Pepsi Twist, Pepsi Max,

Pepsi Samba, Pepsi Blue, Pepsi Gold, Holiday Spice, Pepsi Jazz, Pepsi X (available in

Finland and Brazil), Pepsi Next (available in Japan and South Korea), Raw, Pepsi Retro

in Mexico and Pepsi Ice Cucumber in Japan.

Company overview PepsiCo is a world leader in convenient foods and beverages, with

2006 revenues of more than $35 billion and more than 168,000 employees across the

world. Its world renowned brands are available in nearly 200 countries and territories.

Building for the future PepsiCo is among the worlds largest consumer products

companies focused on convenient foods and beverages. They were proud on their

products are some of the worlds best known brands and they are enjoyed by billions of

people around the world every day. There products are recognized for their quality, taste

and value, and increasingly, for their contribution to healthier diets.

Intergradient in Pepsi:

Pepsi-Cola contains basic ingredients found in most other similar drinks including

carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine,

citric acid and natural flavors. The caffeine-free Pepsi-Cola contains the same ingredients

minus the caffeine.

The original Pepsi-Cola recipe was actually available from documents filed with the court

at the time that the Pepsi-Cola Company went.


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SOFT DRINK

A soft drinks is a non-alcoholic beverages. It is artificially flavored and contains no

fruit juice or pulp. India with population of more than 100 crore is one of the largest

consumer markets in the world after China. Soft drinks is a typical consumer product

purchased by individuals to quench thirst and secondly for refreshment.

Searching for the point of origin of Indian soft drinks I first document on Gold

Spot, which was the first brand soft drinks in India? It was introduced by PARLE

during later part of 40s. Cola giant, Coca-Cola was the first foreign soft drink to be

introduced in India in 1965, Coca Cola made a very good beginning and dominated the

whole scheme right from the world go. It (Coca-Cola) faced no competition at that

time.

This extraordinary success of soft drinks can be attributed to the following

factors:

(a) Absence of contemporary competitive brand.

(b) Euphoric image build up in the Western countries preceded the entry into

India Market

(c) Indians are very found by nature of foreign goods, services etc.due to

prolonged foreign rules.

PARLE EXPORTS PVT.LTD.Later in 1970 introduced Limca, Lemony Soft

drinks. BeforeLimcaintroduced they had tentatively introduced Cola, Pepino,


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which they had to withdraw in the face of battering confrontation with Coca-

Cola soon.

Three of four groups of Indian companies, which had the required

productioncapacity, started their own brands of Cola. Lemon, Orange, but failed

to achieve their goal on a national basis.

The existence of Coca-Cola from India in 1977 accelerated the growth of

several Indian soft drinks. New soft drink in the form of Tetra pack enters the market

among Frooti, Jump-In, and Tree-top Ire the prominent once. Till 1977 their equipped

bottling plants and the distribution network a longing to be of no use. It took them one

year to develop new formula to survive and gradually came up with Campa,Lemon,

Orange and Cola that order.

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

prominence with their product Thumps-Up, bearing the slogan Happy Days

arehereagain. This particular slogan helped to win over the loyalists or addicts to

Coca-Cola. Soon the Indian Soft drinks industries started at a phenomenal rate, and all

Parle products Gold-Spot, Limca and Thumps-Up became the brand leader in their own

segment.

In spite of all these the drinks market still has large gap, as claim by soft

drink manufacturers. To fill these gaps there are many soft drinks concentrate and

squashes flooded the market. The Indian soft market basically offered three flavors i.e.

Orange, Lemon, and Cola.


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The year 1988 was the coming of the multinational company, PEPSI entering the Indian

market eleven years after the existence of Coca-Cola. It had name, fame and edge of

being one of the best in the game and it also offered stiff competition to Parle and

Coke. Now Pepsi is going all out to prove that they are the best


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OBJECTIVE

To analyze, interpret and study the entire beverage market of Greater Noida

Comparative study of the various brands, packs and flavors available in the market.

Analysis of the strong and weak point of the competitors products and compare it with

PEPSI.

To assess the reach and feasibility of the product and give the output for further

investment for enhancing the distribution network along with assessing the efficiency of

the current distribution system.

Assess the promotional measures in the context to the sales of PEPSI and focusing our

study on the customer of company i.e., the retailers.

As obvious that any company is concern with the increase in sales of its products, our project was

in line with the companies objectives and all steps incorporate in the project were directed to

give an overview so as to attain its objectives

The market research conducted by us was in accordance to the companys rules and

policies which were quite material for the efficient and effective results and inferences to be

drawn from the entire process.

The market research was conducted in compliance of the given guidelines delivered to us

expressly to achieve the given objectives, which were as under:

1. Profitability

2. Improvement

3. Sales

4. To satisfy the customers


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THE COMPANY PROFILE:-

PEPSI COMPANYCalebBradham a New Bern N.C druggist who

formulated Pepsi Cola founded Pepsi Cola Beverage business at turn of the century. Pepsi

Cola Company now produces and markets nearly 200 refreshment beverages to retail,

restaurants and food service customers in more then 190 countries and territories around

the world and generates revenue of over 18 billion dollars PepsiCo World Headquarters

is located in Purchase, New York.

Pepsi Co. is the world leader in the food chain business. It consists of many

companies amongst which the prominent ones are Pepsi Cola, Frito-Lay, Pepsi food

international, Pizza-hut, KFC and Taco bell. The group is presently into three most

profitable businesses namely, Beverages Snacks foods and Restaurants.

The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and

other brands worldwide and 7UP outside the U.S. market. They are positioned in close

competition with Coca Cola Inc. of USA.

The Snacks food divisions manufacture and distribute and markets others snacks

worldwide.

The restaurant segment primarily consists of the operations of the worldwide

Pizza-Hut, Taco bell and KFC chains PFS, PepsiCos restaurant distribution operation,

supplies to Company owned and Franchise restaurants in the U.S.


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When Coca Cola changed its formula in 1985, Pepsi Stepped up its competition

with its long time archrival claiming victory in the Cola-wars. Coke and Pepsi expended

their rivalry to tea in 1991 when Pepsi formed a venture with No.1 Lipton in response to

Cokes announced venture with Nestle (Nestea).

Pepsi Co is going blue. This was the new color adopted by the company to

strengthen its brand globally. Also the company is changed colors from Generation X to

GENERATION NEXT.

Although Pepsi holdings over the years have become diverse in such fields as the

Snacks industry and Restaurants industry, this portfolio will discuss its core business and

its highly successful business of Beverages. The soft drink industry customer base is

probably the widest and deepest base in a world that is flooded with some many

categories. According to Beverage Digest the customer base for soft drinks is a whopping

95% of regular users in the United States. This represents a large field of potential

customers for Pepsi Cola.

Pepsi prefers to segment itself as the beverage choice of the New Generation,

Generation Next, or just as the Pepsi Generation.These terms adopted in Pepsis

advertising campaigns are referring to the markets that marketers refer to as Generation

X. The Generation X consumer is profiled to be between the ages of 18 to 29. They have

high expectations in life and are very mobile and active. They adopt a lifestyle of living

for today and not worrying about long-term goals. Those Pepsis main emphasis on this

segment they also have a focus on the 12 to 18 year old market. Pepsi believes if they can

get this market to adopt their product then they could establish a loyal customer for life.


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Pepsi Cola throughout its 100 years of existence has developed much strength.

One of the strengths that have developed Pepsi into such a large corporation is a strong

franchise system. The strong franchise system was the backbone of success along with a

great entrepreneur spirit. Pepsis franchise system and distributors is credited to bring

Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of

1997.

Pepsi also has the luxury to spend 225 million dollars in advertising a year. This

enormous ad budget allows Pepsi to reinforce their products with reminder advertising

and promotions. This large budget also allows Pepsi to introduce new products and very

quickly make the consumer become aware of their new products.

Pepsi also has had the good fortune of making very wise investments. Some of the

best investments have been in their acquiring several large fast food restaurants. They

have also made wise investments in snack food companies like Frito Lay, which at

present time is the largest snack company in the world. Probably high on the list of

strengths is Pepsis beverage line up.


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Pepsi has four soft drinks in the top ten beverages in the world. These brands are Pepsi,

Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Some other strong brands

are All Sport, Slice, Tropicana, Starbucks, Aquarian and a license agreement with Ocean

Spray Juices.

Vision:

Our mission is to be the world's premier consumer Products Company focused on

convenient foods and beverages. We seek to produce financial rewards to investors as we

provide opportunities for growth and enrichment to our employees, our business partners

and the communities in which we operate. And in everything we do, we strive for

honesty, fairness and integrity.


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Mission Statement:

PepsiCo's responsibility is to continually improve all aspects of the world in which we

operate - environment, social, economic - creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship,

activities to benefit society, and a commitment to build shareholder value by making

PepsiCo a truly sustainable company.

OUR CORE VALUES

CUSTOMER FOCUS

We treat each of our customer equality & as the most important person while we interact

with him/her. We must ensure that we do everything to meet and exceed the customers

expectations with perfect to times, accuracy & quality services.

EMPLOYEE RESPECT & DIGNITY

We treat each of our employees with fairness, which includes giving constructive

feedback for their development. We celebrate diversity and seek suggestions from all

employees for improvement. We ensure that responsibility & fairness in all our decision-

making.

TEAM BASED APPROACH

We work towards achievement of our vision & mission as a combines group. We


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power of attorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who is

well advised by the MD.

The director Mr. Ravi Khilani looks after all functional departments that sales production,

account, personnel and purchase. Though the manager all the functional departments has

specially designated as head of personnel department.Every department has to report

directly to the managing director and is responsible to his only for working in spite of this

all departments is under the control of the director Mr. Ravi Khilani. Because he is the

Chief Executive of the company cited earlier.

BRIEF HISTORY OF L.B.P.L.

I. Lumbini Beverage Pvt. Ltd. is situated at Industrial Area, Allahabad in

district Allahabad U.P. Mr. CharanKhilani, , established it in the year 1997.

It is one of the Pepsi Foods bottling Plants in Bihar.Anand-Marketing Pvt.

Ltd., was a marketing divisionsofLumbini Beverages Pvt. Ltd. but

now.doesits marketing itself.

PROFILE OF LUMBINI BEVERAGES PVT. LTD.

Company Land Area : 9.30 Acres

Location and Authority: EPIP, Industrial Area, Allahabad- 844101

Name of Director/Occupier : Ravi Khilani


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Name of CEO : Mr. G. P. Singh

Industrial License No. : Regn. No.H 12475(C)

Factory License No. : 66750/VLI

Date : 16.08.97

F.P.O. License No.: 10607/97

Capacity : 1500 bottles per minute

Nature of product: Soft drink, Pepsi, Mirinda, Soda, Slice, Aquafina

No of employees: : 150+150(max.) Seasonal labors any

day in the season

Control Board : NO. 1877. Date07.04.97


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Organization Structure

CEO

TDM

CE

PSR

TDM- Territory development manager.

CECustomer executive

PSR- Presales representativ


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PRODUCT PROFILE:

The product profile ofLUMBINI BEVERAGE PVT.LTD.Is:

No. of product &Flavour Quantity Color

(a) Pepsi 200 ml. Burnt-Sugar

(b) PepsiCola 300 ml. Burnt-Sugar

(c) PepsiCola600 ml. Burnt-Sugar

(d) PepsiCola 2000 ml. Burnt-Sugar

(e) Mirinda Orange 200 ml. Sunset

(f) Mirinda Orange 300 ml. Sunset

(g) MirindaOrange600 ml. Sunset

(h) Mirinda Orange 2000 ml Sunset

(i) Mirinda Lemon200 ml. Tetrazin

(j) MirindaLemon 300 ml. Tetrazin

(k) Mirinda Lemon 600 ml. Tetrazin

(l) MirindaLemon 2000 ml. Tetrazin.

(m) 7up Lime 200 ml. Shelaty

(n) 7up Lime 300 ml. Shelaty


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(o) 7up Lime 600 ml. Shelaty

(p) 7up Lime 2000 ml. Shelaty

(q) Laher soda Lemon 300 ml. Shelaty

(r) Laher soda Lemon 600 ml Shelaty

(s) Mountain Dew Lemon 300 ml. Shelaty

(t) Mountain Dew Lemon 600 ml. Shelaty

(u) Mountain Dew Lemon 2000 ml. Shelaty

(v) Slice Mango250 ml. Mango

(w) SliceMango 500 ml. Mango

(x) SliceMango 1200 ml. Mango

(y) TopicanaJuice200 mlJuice

(z) TopicanaJuice 1000 ml. Juice


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PEPSI BRANDS AND PACK PROFILE

BRAND PACKS:

The products are generally available in three kinds of

packaging:

GLASS BOTTLES

DISPOSABLE CANS


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PET JARS

FLAVOUR PACKS:

COLA (Carbonated Soft Drink):


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PEPSI

MIRANDA ORANGE

ORANGE:

MANGO


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MOUNTAIN DEW

7UP

MANGO FLAVOUR

SLICE MANGO


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NIMBOOZ LEMON

MINERAL WATER:

AQUAFINA


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PRODUCTION DEPARTMENT:

Production is like a back bone in any manufacturing organization. In VBL the main

Production materials are

Sugar

Co2

Water

Ammonia etc.

All the raw material which is used in the production process is approved by the Pepsi cola

international. These materials should be according to the standards of the PCI. If in any

case the material does not match with the standards of the PCI has a right to return it to

the supplier. In this case the entire cost of the material is bearded by the supplier. This

strong check on the material is because of maintaining the high quality in the products

which is the credentials of the Pepsi cola products..

Quality control

Quality control is the basic organizational objective of VBC. Quality check is made from

zero level to final products. For this purpose samples are taken from the production to

check the quality. This sampling is done after each an hour or half an hour. The se

samples are tested according to the PCI standards

Production staff

Employees are directly involved in the production process. Whereas the helpers are the

indirect employees Moreover direct supervisor and helpers are also there. Indirect


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employees are about 350 in number, who are not directly involved in the production

process but they are essential part of the production department.

Laboratory

In order to maintain the high quality the plant has a well equipped lab. Laboratory is

sufficient to measure the standards and to test syrup of different flavors. The well

equipped lab enables the smooth flow of production process.

Product line

The major brand of NBC is Pepsi 250 ml, having highest market share which is 47% as

Compared to other brands. The other brands produced by the organization are

Pepsi

Pepsi diet

Miranda

7up

7up diet

Mountain dew

Slice

Aquafina

Nimbooz


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Production process

The steps involved in the production process are:-

First the fork lift supplies the empty bottles which are collected from the

distributions.

Then depalletising is done i.e. separating cases filled or empty bottles

from the wooden planks.

Uncasing is done by separating empty bottles from the cases/carats.

Empty bottles are then fed into the bottle washer where stream with some

chemical is used for washing.

Washed bottles are then send to the filler where premix (Composed of

syrup, treated water bulk CO2)is filled in it.

The whole concentrated is chilled with glycol before filling and then

crowning is done.

The filled bottles are passed through inkjet coder for printing price and

date.

Then again the filled bottles are send for final light inspection and from

there they are collected on a table.


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PRODUCT POSITIONING OF PEPSI CO.

Pepsi prefers to position itself as the beverage choice of the New Generation,

Generation Next, or just asthe Pepsi Generation.

These terms adopted in Pepsis advertising campaigns are referring to the markets

that marketers refer to as Generation X. The Generation X consumer is profiled to be

between the ages of 18 to 29. They have high expectations in life and are very mobile and

active. They adopt a lifestyle of living for today and not worrying about long-term goals.

Though Pepsis main emphasis is on this segment but they also have a focus on the 12 to

18 year old market.

The rich deep blue coloring represents eternal youthfulness and openness.

Marketing plans like YehDil Mange More, Got Another Pepsi, Ye

PyassHaiBadi have made Pepsi one of the coolest brands recognized among teens in

the top five and the only beverage product in this category.


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PEPSI-COLA LOGOS

The Pepsi-Cola logo has changed many times over the years. Here's a

chronological history of the various logos.

Slogans and Logos

1898 Brad's Drink

1903 Exhilarating, Invigorating, Aids Digestion

1906 Original Pure Food Drink

1908 Delicious and Healthful

1915 For All ThirstsPepsi: Cola
http://www.pepsinut.com/images/logos/logo07.jpghttp://www.pepsinut.com/images/logos/logo03a.jpghttp://www.pepsinut.com/images/logos/logo03.jpghttp://www.pepsinut.com/images/logos/logo07.jpghttp://www.pepsinut.com/images/logos/logo03a.jpghttp://www.pepsinut.com/images/logos/logo03.jpghttp://www.pepsinut.com/images/logos/logo07.jpghttp://www.pepsinut.com/images/logos/logo03a.jpghttp://www.pepsinut.com/images/logos/logo03.jpghttp://www.pepsinut.com/images/logos/logo07.jpghttp://www.pepsinut.com/images/logos/logo03a.jpghttp://www.pepsinut.com/images/logos/logo03.jpghttp://www.pepsinut.com/images/logos/logo07.jpghttp://www.pepsinut.com/images/logos/logo03a.jpghttp://www.pepsinut.com/images/logos/logo03.jpg


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1919 Pepsi: Cola - It makes you Scintillate

1920 Drink Pepsi: Cola - It Will Satisfy You

1928 Peps You Up!

1929 Here's Health!

1932 Sparkling, Delicious

1933 It's the Best Cola Drink

1934Double Size

Refreshing and Healthful

1938 Join the Swing to Pepsi

1939 Twice as Much for a Nickel

1943 Bigger Drink, Better Taste

1947 It's a Great American Custom

1949 Why Take Less When Pepsi's Best?

1950 More Bounce to the Ounce
http://www.pepsinut.com/images/logos/logo51.jpghttp://www.pepsinut.com/images/logos/logo43.jpghttp://www.pepsinut.com/images/logos/logo43b.jpghttp://www.pepsinut.com/images/logos/logo36.jpghttp://www.pepsinut.com/images/logos/logo24.jpghttp://www.pepsinut.com/images/logos/logo51.jpghttp://www.pepsinut.com/images/logos/logo43.jpghttp://www.pepsinut.com/images/logos/logo43b.jpghttp://www.pepsinut.com/images/logos/logo36.jpghttp://www.pepsinut.com/images/logos/logo24.jpghttp://www.pepsinut.com/images/logos/logo51.jpghttp://www.pepsinut.com/images/logos/logo43.jpghttp://www.pepsinut.com/images/logos/logo43b.jpghttp://www.pepsinut.com/images/logos/logo36.jpghttp://www.pepsinut.com/images/logos/logo24.jpghttp://www.pepsinut.com/images/logos/logo51.jpghttp://www.pepsinut.com/images/logos/logo43.jpghttp://www.pepsinut.com/images/logos/logo43b.jpghttp://www.pepsinut.com/images/logos/logo36.jpghttp://www.pepsinut.com/images/logos/logo24.jpghttp://www.pepsinut.com/images/logos/logo51.jpghttp://www.pepsinut.com/images/logos/logo43.jpghttp://www.pepsinut.com/images/logos/logo43b.jpghttp://www.pepsinut.com/images/logos/logo36.jpghttp://www.pepsinut.com/images/logos/logo24.jpghttp://www.pepsinut.com/images/logos/logo51.jpghttp://www.pepsinut.com/images/logos/logo43.jpghttp://www.pepsinut.com/images/logos/logo43b.jpghttp://www.pepsinut.com/images/logos/logo36.jpghttp://www.pepsinut.com/images/logos/logo24.jpg


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1954The Light Refreshment

Refreshing Without Filling

1958 Be Sociable, Have a Pepsi

1961

Now It's Pepsi for Those Who Think Young

1963 Come Alive! You're in the Pepsi Generation

1967Taste that Beats the Others Cold, Pepsi Pours It

On.

1969You've Got a Lot to Live, Pepsi's Got a Lot to

Give

1973 Join the Pepsi People Feel in' Free

1976 Have a Pepsi Day!

1979Catch That Pepsi Spirit

Take the Pepsi Challenge

1981 Pepsi's Got Your Taste for Life

1983 Pepsi Now!
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1984 The Choice of a New Generation

1987 America's Choice

1989 A Generation Ahead

1992 Gotta Have It

1993 Be Young, Have Fun, Drink Pepsi

1995 Nothing Else is a Pepsi

1997 Generation Next

1998 Same Great Taste

1999 The Joy of Cola

2000 The Joy of Pepsi

2003

2004

2005

2006

Pepsi. It's the Cola
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2006

2007

Why you Doggin me

2007

2008

More Happy

2008 Some For Everyone

2009 Yehhaiyoungistaanmerijaan

2010 Every Pepsi Refreshes The World

2011 Change the game
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The project report titled SALES AND DISTRIBUTION, AND COMPARATIVE

ANALYSIS BETWEEN PEPSI AND COCA COLA PRODUCT OFFERS special

reference to ALLAHABAD only can be of great importance to the organization.

It will help the company in following major way:-

To ascertain the satisfaction level of consumers

To identify their competitors and about their strength and weaknesses

To design their market strategies

In other way it can also influence decision on the requirement of the sales

and distribution & comparison between Pepsi and coca cola.

Though I have tried to do my

Project study honestly and sincerely and in case, if there is any weaknesses and

shortcomings, those are unintentional.


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Introducton to the Study:

Beverage industry is one of the fast growing industries in India. It can be divided in to

two sections i.e. carbonated and non-carbonated. The carbonated drinks that

furtherclassified in to cola, lemon, orange, mango and apple segments.

In partial fulfillment of the above mentioned course a project was undertaken by me on

the topicSALES AND DISTRIBUTION , AND COMPARATIVE ANALYSIS

BETWEEN PEPSI AND COCA COLA PRODUCT OFFERS. To know the facts

regarding the above topic, I did a market survey particularly for customers, retailers and

distribution in Allahabad.My interest was Marketing includes all the activities like

promotion, distribution, advertising etc.Marketing is also to convert social needs in to

profitable opportunities. So this topic provides all the essentials to theoretical as well as

practical knowledge and to inculcate its efficiencies. It will help the company ultimately

to achieve their goals.

The soft drinks companies are experiencing a boom in soft drinks, although growth of

other cold drinks is not quite encouraging. The markets of soft drinks are mainly

triggered by the entry of two players i.e. coca cola and Pepsi.

PepsiCo India is striding ahead rapidly towards enabling the global vision to

be the world's premier consumer products company focused on convenience foods and

beverages. PepsiCoIndia seeks to produce healthy financial rewards for investors as it

provide opportunities of growth and enrichment to its employees, business partners and


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the communities in which it operates. PEPSI has gained its dominance in terms of

beverages as well as food.

to look in to customer perception and satisfaction level about PepsiCo with other

beverages present in the market.

The company wants to give maximum satisfaction to its customers, so that they

can get good value for their capital. The company wants to know whether the consumers

are satisfied with their services or not? Whether consumers have faced any problem with

the product and if any then what type of problem they are facing? Whether the retailers

are satisfied with the promotional schemes of the company? What should be the changes

that will improve the quality of services? What are the competitive advantages the

company has over the competitors and where the company lacks? What are the

opportunity and threats in the external environment and how the company scheme for the

opportunity and how the company overcome this threats?

Since this study was aimed at knowing the customer as well as retailers satisfaction

dissatisfaction level and therefore it required to collect information related to quality pf

services provided by PepsiCo Company as well as about its competitors.


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Chapter 2

Policies

As one of the worlds leading food and beverage companies, public policy affects

PepsiCos ability to operate a successfulbusiness, and continue to provide shareholder

value. For this reason, we believe that active participation in public policy is essential and

appropriate for companies in open societies. To demonstrate transparency, PepsiCo has

adopted a variety of policies that are publicly available on our website below.

Government Policy:

The health of democratic societies depends on citizens being responsibly engaged in the

political process. The PepsiCo Concerned Citizens Fund (CCF) receives voluntary

employee contributions to make political campaign contributions to U.S. federal and state

political parties, committees and candidates. The CCF and the company's corporate

contributions provide an important opportunity for PepsiCo, and its employees, to

participate in the democratic process.

The PepsiCo Concerned Citizens Fund (CCF) receives voluntary employee contributions

to make political campaign contributions to U.S. federal and state political parties,

committees and candidates. The CCF and the company's corporate contributions provide


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an important opportunity for PepsiCo, and its employees, to participate in the democratic

process. We believe that providing financial support to responsible pro-business

candidates is an important means by which we help improve the business climate, our

quality of life and the society in which we live, enabling us to succeed as a company

committed to integrity, innovation and value.

The following criteria will be used in connection with all contributions:

The candidate's or entity's commitment to improving the business climate;

The candidate's or entity's position or voting record on issues of direct concern to

PepsiCo;

The location of PepsiCo facilities or employees within the candidate's district or state;

The candidate's position on key committees where legislation of importance to PepsiCo is

considered or the candidate's demonstrated leadership - or potential for leadership -

within the U.S. Congress or a State Legislature.

The candidate's need for campaign financial assistance.

The public policy issues we face as a company and our engagement in the public policy

process, including contributions as part of the political process, are discussed with and

reviewed by the Nominating and Corporate Governance Committee of the company's

Board of Directors.

Details on PepsiCo's political contributions will be posted on its website on an annual

basis. This will occur in conjunction with the release of PepsiCo's Corporate Citizenship

Report each year.


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All contributions and support of U.S. or state political parties, committees or candidates

from the CCF or corporate funds must be made in accordance with applicable campaign

finance and disclosure laws. Coercion of any employee to contribute to the CCF or to

make any political contribution of any kind is unacceptable.

Our employees have the right to be engaged in the political process in their individual

capacity as they see fit, and make political contributions of their own time and money to

the candidates or parties of their choice. Of course, those efforts must not in any way

suggest PepsiCo's support.

Management and supervisory employees who are citizens of the United States may

voluntarily contribute to the CCF.

PepsiCo employees must obtain approval of the Corporate Vice President Public Policy

& Government Affairs before making political contributions of corporate funds.

All contributions must be reviewed by the corporate law department to ensure legal

compliance.

All payments from the CCF to support U.S. or state political parties, committees or

candidates must be approved by the CCF Executive Committee.

PepsiCo generally does not provide contributions from corporate funds to candidates

outside the United States. Any exception to this would require a written recommendation

by PepsiCos regionalgovernment affairs representative and approval by (1) the

Corporate Vice President of Public Policy & Government Affairs and (2) the corporate

and regional law departments to ensure strict legal compliance.


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MARKETING MIX

Marketing is the task of creating, promoting and delivering goods and services to

consumers and businesses. Organizations identify and profile distinct group of buyers

who might prefer or require varying products and marketing mixes. The customer seeks

for value and satisfaction. The organizations can increase the value of the customer

offering in several ways e.g. raising benefits, reducing costs etc. marketing mix is a set of

marketing tools that the firm uses to pursue its marketing objectives in the target market.

These marketing tools are known as 4 ps of marketing.

1. Product

2. Price

3. Place

4. Promotion

To identify the customer needs and fulfilling hem is the basic objective of an

organization. Marketing is not just satisfying your customers, you have to delight themed

this can be done by acting upon this phrase.

Under Promise and Over Deliver

Beverage Ltd. provides a winning combination of products and services to its prime

customers. PepsiCo is one of the world leading companies, which ensures complete

security, and reliability in all transactions


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PRODUCTS

A product is anything that can be offered to a market to satisfy want or need and a service

is an act or performance that is essentially intangible and does not result in the ownership

ofanything. What products or services have to be offered to the target market depends on

the market requirement and also the organizations profits. The organization will offer

those products and services, which result in maximum profits and minimum costs

PRICE

It is second important tool of marketing mix because it plays a major role in determining

The customers choice. Also it is the only marketing tool that results into revenue. The

Customer makes a comparison between the prices offered by other companies and

PepsiCo and then selects the most suited offer. Following is the list of prices of different

products Beverage Ltd. normally use son going price strategy by seeing its major

competitor Coca Cola besides this company also uses Discount price strategy during

special occasions.

PLACE

The location of the organization plays a vital role in making its operations profitable. If

the organization outlets are located in some near markets then it will be very easy for it to

attract people. Therefore Beverage Ltd. has most of its outlets at places where it can

reach its.


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PROMOTION

Pepsi Company is actively participating in promotion of its products and services through

advertisement and other promotional schemes. PepsiCo spends a major portion of its

budget on advertising. Advertising is done through different ways like:

Point of Purchase Promotion:

Personalizes Marketing


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COMPETITORS:

TheCoca-Cola Company has historically been considered PepsiCo

s primary competitor in the beverage market, and in December 2005, PepsiCo surpassed

The Coca-Cola Company in market value for the first time in 112 years since both

companies began to compete. In 2009, the Coca-Cola Company held a higher market

share in carbonatedsoft drink sales within the U.S.In the same year, PepsiCo maintained

a higher share of the U.S. refreshment beverage market, however, reflecting the

differences in product lines between the two companies. As a result of mergers,
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acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has

shifted to include a broader product base, including foods, snacks and beverages. The

majority of PepsiCo's revenues no longer come from the production and sale of

carbonated soft drinks. Beverages accounted for less than 50 percent of its total revenue

in 2009. In the same year, slightly more than 60 percent of PepsiCo's beverage sales came

from its primary non-carbonated brands, namelyGatorade andTropicana

Two primary reasons contributed to domination of Coca Cola in the international market,

with one as mentioned above was the strategy Coca-Cola used when investing in a

foreign market. Coca-Cola entered foreign markets differently than Pepsi, providing it an

edge over Pepsi. While Pepsi invested heavily in foreign markets, Coca-Colas appointed

bottlers with significant experience easily neutralized any threat PepsiCo could pose. The

second reason Coca-Cola holds such a dominant position in world market is due to World

War II. During World War II, Coca-Cola offered American servicemen its product for 5

Cents, wherever they were and whatever the costs the company would incur. The

company would establish bottling plants (subsidized by US government), and send its

product overseas wherever US troops went. With its inexpensive price, and widespread

popularity among servicemen, coupled with the eventual victory of US in Europe and

Asia, the product was widely adopted throughout Europe and Asia. Due to familiarity of

the product, Coca-Cola still retains a dominant position throughout Europe and Asia.
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Quick and prompt to their service.

This company is more dominant and securing a positive image in the market.

Regular to their service.

More chillers are made available in comparison to Pepsi.

Scheme is properly conveyed to shopkeepers.

Close watch on current market trends.


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NATIONAL AND INTERNATIONAL IMAGE:

PEPSI-THE INDIAN EXPERIENCE

Pepsi is one of the most well known brands in the world today available in over

160 countries. The company has an extremely positive outlook for India.

"Outside North America two of our largest and fastest growing businesses

are in India and China, which include more than a third of the worlds

population." (PepsiCos annual report, 1999).

This reflects that India holds a central position in Pepsis corporate strategy. India

is a key market for PepsiCo, and at the same time the company has added value to

Indian agriculture and industry. PepsiCo entered India in 1989 and is

concentrating in three focus areas Soft drink concentrate, Snack foods and

Vegetable and Food processing.

Faced with the existing policy framework at the time, the company entered the

Indian market through a joint venture with Voltas and Punjab Agro Industries.

With the introduction of the liberalization policies since 1991, Pepsi took

complete control of its operations. The government has approved more than US$

400 million worth of investments of which over US$ 330 million have already

flown in.

One of PepsiCos key strategies was to develop a completely local management

team. Pepsi has 19 company owned factories while their Indian bottling partners

own 21. The two advertisements tags: yehihai right choice baby and nothing

official about it immediately ring a bell- its got to be Pepsi.


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The advertisement tag yehihai right choice baby was the first Hinglish slogan

ever used in the in the Indian market. This slogan proved to be the best suited one

for Pepsi and it was a mega hit and at that moment of time. Pepsi in a short span

of its operations in India has found a place in the hearts and minds of the Indian

consumers. The success has primarily been due to the innovative and passionate

Indian team, which has been built over the years. Pepsi is a trendsetter managed

and run by Indians, where important decisions are taken locally.

Pepsi started its operations in India in 1989 and since then PepsiCo has set

up a fully integrated operation in India viz. Manufacturing, Research &

Development, Marketing, Distribution and Franchising- covering fruit/vegetable

processing, Exports, Snack, and Foods & Beverages. In the mean time Pizza Hut

and Frito Lays are the examples in this regard only.

Pepsi has 40 bottling plants in India, out of which 16 are company owned

and 24 are owned by Indian franchisees. One of the major players in franchisee is

RKJ Group.

The RKJ group is India's leading supplier of retailer brand Carbonated and

Non-Carbonated soft drinks, with beverage manufacturing facilities in India and

Nepal. Its experience in the beverage industry dates back to the sixties when it

had the first franchise at Agra.

It has the license to supply beverages in the territories of Western U.P., part of

M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9

districts of Karnataka and whole of Nepal. The group has in total 18 bottling


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plants in India & Nepal and is responsible for producing and marketing 44% of

Pepsi requirement in India.

This group has brought name and fame to the Pepsi as in all this regions Pepsi is

at the commanding position and in the mean this group has diversified itself into

ice cream, suiting and shirtings, restaurants, beer plant in Mauritius & edible oil

plant in Sri Lanka


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PEPSI-COLA IN INDIAN SCENARIO

Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has under

gone a radical change. When Pepsi-Cola entered, Parle was the leader with the Thumps-

up being its flagship brand. Other products offering by Parle included Limca& Gold spot,

another upcoming player in the market was, the erstwhile bottler of Coca-Cola, pure

drinks. Its offering includes Campa- Cola, Campa-Lemon &Campa-Orange.

With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in for more

aggressive marketing to sustain its market share. The chronology of the initial phase of the

Cola wars in India was:

1977:Parle launched Thums-up and pure drinks launched Coca-Cola.

1998:In September, final approval for the Pepsi Foods Ltd. Project granted by the

Cabinet Committeeon economic affairs of the Congress Govt.

1990: In March, Pepsi-Cola and 7-uplaunched markets in north India.

1990: In May, The government cleared the Pepsi-Cola project again but with a

change in brand name to Lehar Pepsi,simultaneously it rejects the Coca-Cola

application Citrafrom the Parle, stable hited the market.

1991:Pepsi-Cola extended its soft drinks business and reached at national scale.

Pepsi-Cola launched its product in Delhi and Bombay.

1992:In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and

Parle start initial negotiation for a strategic alliance but took break off after a

while.


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1993:Pepsi-Cola launched Slice and Teemcaptured about 25-30% of the soft

drink market in about 2 years.

1994:Pepsi bought Dukes &Sones.

1995:Pepsi-Cola lunched cans, having capacity of 330ml in various flavors.

1996: Pepsi-Cola domestic and international operations combined into a Pepsi-

Cola Company. International and domestic operations combined into one

business unit called Frito-Lay Company.

1997:Pepsi-Cola brought Miranda Orangeopposite to Fanta.

1998:Pepsi-Cola launched Miranda Lemonopposite to Limca.

1999: Pepsi-Cola launched Diet Pepsi in can and 1.5 Lit. PET bottle for

health conscious people.

2001:Pepsi-Cola launched Slice in TetraPack.

2003: Pepsi-Cola launched Pepsi Blueto get the favour of world cup season.

2005: Pepsi-Cola launched Miranda in Straw Berryflavour to get the favour of

movie Batman.

2005:Pepsi-Cola launched 7-up as 7-up ice.

Pepsi-Cola launched Mountain Dewto be more competitive with Coca-Cola


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PEPSICO INTERNATIONAL

In everything we do, we strive for honesty, fairness and integrityPepsiCo India is striding

ahead rapidly towards enabling the global vision to be the world's premier consumer

products company focused on convenience foods and beverages. PepsiCo India seeks to

produce healthy financial rewards for investors as it provide opportunities of growth and

enrichment to its employees, business partners and the communities in which it operates

Establishment

PepsiCo established its business operations in India in 1989 and has grown to become

one of the countrys leading food and beverage companies. One of the largest

multinational investors in the country, PepsiCo has established a business which aims to

serve the long term dynamic needs of consumers in India

Employment

PepsiCo India provides direct and indirect employment to 150,000 people including

suppliers and distributors.

PepsiCo established its business operations in India in 1989.

Invested more than USD 1 Billion since inception.

Well known and loved global brands that delight and nourish consumers

It provides direct and indirect employment to 150,000 people in India

It has more than 42 bottling plants in India, of which 13 are company owned &

29 franchisee owned.

3 State-of-the-art food plants in Punjab, Maharashtra and West Benga


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PEPSICO BOILERPLATE

PepsiCo offers the worlds largest portfolio of billion-dollar food and beverage brands,

including 18 different product lines each generating more than $1 billion in annual retail

sales. Our main businesses Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade

also make hundreds of other nourishing, tasty foods and drinks that bring joy to our

consumers in over 200 countries. With more than $43 billion in 2008 revenues, PepsiCo

employs 285,000 people who are united by our unique commitment to sustainable

growth, called Performance with Purpose. By dedicating ourselves to offering a broad

array of choices for healthy, convenient and fun nourishment, reducing our

environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo

balances strong financial returns with giving back to our communities worldwide.

BRAND FACTS

PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats

that deliver enjoyment, nutrition, convenience as well as affordability

The group has built an expansive beverage and foods business. To support its operations,

PepsiCo has 42 bottling plants in India, of which 13 are company owned and 29 are

franchisee owned. In addition to this, PepsiCos Frito Lay division has 3 state -of-the-art

plants. PepsiCos business is based on its sustainability vision of making tomorrow better

than today. PepsiCos commitment to living by this vision every day is visible in its

contribution to the country, consumers and farmers.


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BEVERAGES

PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi,

7 UP, Nimbooz, Mirinda and Mountain Dew, in addition to low calorie options such as

Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic

sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinksTropicana

Nectars, Tropicana Twister and Slice. Local brandsLehar Evervess Soda, Dukes

Lemonade and Mangola add to the diverse range of brands.


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FUTURE PLANNING

The company operates through well experienced, loyal and hardworking employee

exceeding. The first and the most basic plan it to train them according to the changing

technology and computerized environment, and satisfying their needs and requirements.

Upgrading the plant structure and installation of the new machinery are other plans. The

company is planning to increase its sales force and development in its infrastructure in

the coming time period.

Company has also recently purchased plants from Double Cola. There were 02 plants

installed for the production of 250ML (NR) bottles. Company is now changing these plants to

250ML (RB) Plants and also another plant is being installed there for the production of:

THEORITICAL PERSPECTIVE

Its responsibility is to continuously improve all aspects of the world in which we operate

increating a better tomorrow for future generations.

Environment Sustainability

Environment Sustainability is based on PepsiCos commitment to be responsible

stewards of our planets resources. We are reducing water usage through conservation,

reuse, and replenishment and we work with local communities to provide access to clean

water.


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Sustainability

Its Everybodys Business

Sustainability Vision

PepsiCos responsibility is to continually improve all aspects of the world in which we

operate - environment, social, economic - creating a better tomorrow than today.

Tomorrow Toda

PepsiCo India continues to build on its strong foundation of achievements on the Purpose

or CSR agenda and scale up its initiatives while focusing on the following 3 critical areas

in Environment Sustainability that are linked to its business and where it can have the

most impact.

PepsiCo is committed to conserving and recharging resources in the environment and

recognizes that corporations can play a key role in using scarce resources such as water

with care and responsibility


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Waste to Wealth

Waste to Wealth PepsiCo Indias unique Waste to Wealth initiatives to convert bio-

degradable waste into high quality organic manure and recyclable waste is recycled.

Partnership with Farmers

PepsiCo India continues to strengthen its partnerships with Farmers across the country to

boost their productivity and income.

Corporate Social Responsibility - India

Performance with Purpose articulates PepsiCo Indias belief that its businesses are

intrinsically connected to the community and world that surrounds it.


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Healthy Kids

PepsiCos Get Active a Good nutrition and Active Lifestyle Program for Children has

seen robust growth and implementation PepsiCo India stays committed to the health and

well-being.

Partners in CSR

PepsiCo partners who have been associated with various CSR initiatives

Community Voices


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Our partners and beneficiaries talk about how various PepsiCos CSR initiatives changed

their lives.

Other Community Initiatives

PepsiCo India has been involved in series of initiatives towards the Community

development and supporting the local population.


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THE RKJ GROUP

It can be said with absolute certainty that the RKJ Group has carved out a special niche for

itself. Their services touch different aspects of commercial and civilian domains like those

of Bottling,Food Chainand Education. Headed by Mr. R. K. Jaipuria, the group as on

today can lay claim to expertise and leadership in the fields of education, food and

beverages. The business of the company was started in 1991 with a tie-up with Pepsi Foods

Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined

territories in which brand and technical support was provided by the Principals viz., Pepsi

Foods Limited. The manufacturing facilities were restricted at Agra Plant only.

The group also became the first franchisee for Yum Restaurants International

[formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise

rights for Northern & Eastern India. It has total 27 Pizza Hut Restaurants under its

company.

The group added another feather to its cap when the prestigious PepsiCo

International Bottler of the Year award was presented to Mr. R. K. Jaipuria for the year

1998 at a glittering award ceremony at PepsiCos centennial year celebrations at Hawaii,

USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the

presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman

of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola

Company.


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MAJOR CREDENTIAL

PEPSICO HOLDINGS PVT. LTD. RECEIVED GOLDSTANDARD AWARD FOR

PRODUCTION & QUALITY CONTROL FOR THE YEAR 1996-1997.

JAIPURIA GROUP WAS ADJUDGED BESTBOTTLER OUT OF MORE

THAN 2000 BOTTLERS ALL OVER THE WORLD FOR THE YEAR 1996-97.


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Chapter 3

Objective of the study

Every project is carried out with a view to attain certain predetermines objectives.

Following are the objectives of this project:-

To know the brand perception of PEPSICO BEVERAGES.

To know the choice of brands of the consumers and reason for the same

To study the problems faced by the respondents with their beverages preferred

To know the stock position of PEPSI and its competitors at different outlets

To know the reason for specific brand preference

To ascertain the satisfaction level of consumers

To ascertain the strength and weaknesses of the competitors.

To help the company in designing their market strategies

To know the grievances of retailers and distributors

To identify the products image

Find the depth and width of distribution channel adopted by Lumbini Beverages

Pvt. Ltd. Hajipur and compare them with those followed by competitors.

To ascertain the consumer brand perception of cold drinks with respect to price,

product, quantity and advertising.


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Whatever the subject taught in the class room of MBA course that is completely

theoretical. So during the training period we compare how the marketing research

(sales) activities (practical) of our organization with the theories.

IMPORTANCE AND RELEVANCE OF THE STUDY

Cold drinks were started with the idea of quenching the thirst of the persons traveling. It

was also felt that reliable good water was not available everywhere. So people would

really on their packed bottle and with this idea its makers made these drinks available

mostly, at those places where water was not available i.e. on highways and long distance

trains.

But slowly and slowly with its beautiful taste these become very popular and now

they are available not only in the market and street corners, but also people have started

keeping it in their house.

The credit of popularizing the soft drink goes to Coca Cola. This was the drink

which is liked by all ladies, gents and children. Now days soft drinks are quenching

thirst looks more often; they are taken due to habits.

Gold Sport is considered as the first branded soft drinks, established 53 years ago

before all empowering Coca Cola faced competitions and its euphoric image built up in

the western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. is

regarded as the first Indian Company introducing Limca a leman drink complementary to


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it this has also introduced Cola Pepone which was withdrawn in the face of tough

competition from Coca Cola.

When Coca Cola bid a Farwell in 1977, Indian market was open for various new

forward publishing different brands in the markets. Parle people introduced their Cola,

Thumps Up with a mighty saying Happy days are here again as if happy days went

away with Coca Cola. Pure drinks of Delhi also without lasing much introduced pure

drinks were producing and marketing Coca Cola earlier Campa Cola with Campa orange

and Campa lemon. Modern Bakeries entered the market with Double Cola Seven, Mohan

Makings with Merry &Plkup and McDowell with Thrill, Rush and Sprint. This is Indian

market where there was no competition and high voltage advertising was on each one

was trying their best to become number one company with A class product in the field

of Soft Drink business. Now after a long gap government of India had given permission

to Coca Cola, which joined with Parle to do business in India. They are trying their best

to regain prestige which it had before. The much rival of Parle is Pepsi an American

concern. It started business on the Indian soil just a few years ago.

Today, it has occupied 62% shares of Soft Drinks market in India. Now Pepsi is

going all out to prove that they are the best. But now due to some factors competition

among them has become stiffen. So in this way the important activities have increased.


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Performance with purpose

At PepsiCo, Performance with Purpose means delivering sustainable growth by investing

in a healthier future for people and our planet. We bring that Purpose to every aspect of

our business.

At PepsiCo, Performance with Purpose means delivering sustainable growth by investing

in a healthier future for people and our planet. As a global food and beverage company

with brands that stand for quality and are respected household namesQuaker Oats,

Tropicana, Gatorade, Lay's and Pepsi-Cola, to name a fewwe will continue to build a

portfolio of enjoyable and wholesome foods and beverages, find innovative ways to

reduce the use of energy, water and packaging, and provide a great workplace for our

associates. Additionally, we will respect, support and invest in the local communities

where we operate, by hiring local people, creating products designed for local tastes and

partnering with local farmers, governments and community groups. Because a healthier

future for all people and our planet means a more successful future for PepsiCo. This is

our promise.

Our Performance with Purpose agenda is comprised of three platforms:

1. Encourage people to live healthier by offering a portfolio of both enjoyable and

wholesome foods and beverages.

2. Protect the Earth's natural resources through innovation and more efficient use of

land, energy, water and packaging in our operations.


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3. Invest in our associates to help them succeed and develop the skills needed to drive

the company's growth, while creating employment opportunities in the

communities we serve.

The people behind PepsiCo's brands are working hard to address these sustainability

challenges, while partnering with key stakeholders to effect real change. While we have

taken significant strides on this journey, there is still more to learn and do. It is our intent

to lead the way.

Commitment

We are committed to delivering sustained growth through empowered people acting

responsibly and building trust.

What It Means ----Sustained Growthisfundamental to motivating and measuring our

success. Our quest for sustained growth stimulates innovation, places a value on results,

and helps us understand whether today's actions will contribute to our future. It is about

the growth of people and company performance. It prioritizes both making a difference

and getting things done.

Empowered Peoplemeans we have the freedom to act and think in ways that we feel

will get the job done, while adhering to processes that ensure proper governance and

being mindful of company needs beyond our own.

Responsibility and Trustform the foundation for healthy growth. We hold

ourselves both personally and corporately accountable for everything we do. We


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must earn the confidence others place in us as individuals and as a company. By

acting as good stewards of the resources entrusted to us, we strengthen that trust by

walking the talk and following through on our commitment to succeeding together.


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Chapter 4

Research MethodologyAll the findings and conclusion obtained on the survey done in the working area.With the

limit, I tried my best to select the sample representative of the whole group.During my

job training I maintained different routes during my dealer survey. I have collected data

from the Depot of Patna under the organization itself.

Data-sources:

Retailers/Dealers (Cold drinks

stalls,Icestalls,Hotels,Restaurants,Sweetshop,Panshop,GeneralStores,Telephone Booths

etc.) Depot internal companys records etc.

Research-approach:

~Survey

Research-instrument:

~Interview Schedule

Sampling-plan:

Sampling unit Distributor Retailer

Sampling size 02 96


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Sampling procedure:

~ Census survey

~ Contact method

~ Personal interview

Primary Data collection:

All the dealers/retailers were personally visited and interviewed. There was a format for

collecting the details of the dealers. The format was filled by taking the information from

the dealer by monitoring the shops.

DEALER-SURVEY:

Dealer-survey, as the word indicates, is the survey of every dealer of soft drinks in the

area. For our practical purpose, the dealer not only includes the authorized dealers, but it

also includes all the retailers-big or small grocery shops, stationary, restaurants, beetles

shop etc., besides these, the various exclusive stalls and sales of pantry cars are also

included in it. In a nutshell, by dealer survey, I mean who is dealing with the soft drink in

someway or the other in large or small quantity directly or indirectly.

Thus,my study includes all such dealers,which includes following aspects:

No.of routes covered by depot

Crate strength

Per day sale


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Chilling ad

Nature of outlet

Schemes of Pay-off

I had to visit each and every outlet and personally interview them. In order to know the

market share of Pepsi and its competitors. I have conducted a survey in Patna and its

surrounding area. By the help of survey, I can find out the reason behind non-availability

of Pepsi in the specified area.

The knowledge of case-stock indicates our case-in-trade and that of competitors. This

will indicate our case-velocity which will help to plan our bottle as whether our

distribution is effective or not. If my case-stock is low then may decide for a case

stocking campaign. Feedback from marketing place regarding servicing of dealers will

help us to improve our service in the lacked areas.

Therefore, appropriate marketing strategy can be worked out depending upon the

findings. Some more uses of dealer-survey,

Depot-effectiveness

The survey can improve the distribution network in these ways:

Immediate activation of non-buyers

Improve the dealer coverage

Increase the realignment of routes

Better control through route card

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


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Salesman should visit the counter on likely basis.

MARKET KNOWLEDGE

Dealer-survey gives the total profit of the market by following:

Location of dealers

The type of dealer

No. of dealers who keep Pepsi, Coca-Cola and comparing the stock.

The marketing inputs with respect to

Advertising

VISI Cooler

Servicing

Training group for future executives:

Good investigators from these surveys can be recruited to take up future jobs. These

people will be ideally suitable, as they would know the market thoroughly.


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Channel of Distribution of Lumbini Beverages Pvt. Ltd.

Allahabad

To make its products available at the right places at the right time in the market, the sales

department of the company pays major attention on controlling the channels of

distribution.

Single type of markets channel is maintained by the company right from its

pioneering stage. The nature of the channel is as follows:-

Company

Distributors

Dealers

Different Outlet Owners

Consumers


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At first the soft drinks supplied to the distributors directly. Retailers or owners of

any outlet can not take the delivery from company. They have to take the products from

their respective or nearest distributor.

There are about 50 distributors and innumerable number of retail outlets operating with

the company in its entire market areas which contains total Bihar. In all the important

places of entire territory this company has its distributors. These distributors selected on

the basis of assurance given by them regarding the minimum sales which they have to

maintain annually. The selection is also done on the basis of the financial position and

reputation of distributor in the market. As for example in appointing a distributor first

engaged in soft drink business second priority is given to those people who are in

cigarette selling business. Depending upon the market, each distributor in the initial stage

has to deposit some security money.The retailers are selected by the distributor fixed

criteria for the selection or appointment or retailers from the side of the distributor. Any

one like Panwala, Cigarettewala or any other shopkeeper can have the stall for the sale of

soft drinks and they are called retailers or outlet owners. They have to give assurance to

the concerning distributor for better sale and at the time of taking delivery they have to

deposit the security i.e. the charges if the empty bottles with specified retailers

purchasing price. The charges if the empty bottles with specified retailers purchasing

price. The distributor at first has to seek the permission of sales department for the

number of cases of soft drinks required by them. After getting the proper authority from

sales department paying the requisite amount either cash or demand draft.


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WAREHOUSING

Every company has to store its finished goods until they sold. A strong facility is

necessary because production and consumption cycles rarely match.

Warehousing is not a simply storing activity but a package of services that enables the

smooth running of the industry.

The stores must be in constant touch with the use department in order to provide

uninterrupted services to the manufacture and its decision since working capital is locked

up in the warehousing stores in equal to money.

The stores functions can be organized in the following manner:-

a) To receive raw material components equipments etc.

b) To meet the demand of use department by issuing the order

c) Accounting the transaction properly.

d) Minimizing obsolescence surplus and scrap by right identification and

using correct preservation method.

The company supply finished products frequently to different distributors as per the

demand.


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Every distributor keeps a minimum stock of different products of the product line so that

the uninterrupted supply could not affect.

In the industrial sector service of optimization where boils down to any exercise of

optimization where limited available resources are to be distributed equitably.The

problem arises from the material that are in stock the form of capital cost, storage loss,

pilferage obsole

Documents

Sales & Distribution and Comparison between PepsiCo & Coca-Cola AHUTOSH DWIVEDI.docx