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SUMMER INTERNSHIP PROJECT REPORT
Udai Institute of Management Studies
Jaipur
BATCH: PGDM 2010-2012
“COMPARATIVE ANALYSIS OF SOFT DRINK (PEPSICO) DELIVERY SYSTEM BETWEEN READY BASE AND ORDER BASE IN TERMS OF SATISFACTION OF
SHOP KEEPER AT
BISTUPUR AND SAKCHI (JAMSHEDPUR)”
COMPANY PROJECT GUIDE:
MR. SUBROTO CHAKRABORTY
COLLEGE PROJECT GUIDE:
PROF. RAJESH SHARMA
ACKNOWLEDGEMENT
In any project one has to take cooperation and assistance of many people. It is
difficult to mention all of them. However, it is necessary to quote some of them who
provided initial support and assistance and having completed the project.
It is indeed a great moment of pleasure to express my sense of profound gratitude &
indebtedness to all the people who have been instrumental in making it a rich
experience. I found it to be a challenging project that gave me a real practical
exposure to the corporate world and it is almost impossible to do the same without
the guidance of peoples around me.
Specifically the summer training of from 20th of May to 20th of June that is generally
termed as the partial fulfillment of my PGDM program holds extreme importance for
my whole career
It gives me immense pleasure to acknowledge PEPSI CO PVT Ltd., which has been
nice enough to give me a chance to do my summer training and providing me
wonderful support through out my training period and afterward.
I am grateful to Mr. P.S. Kumar (Director), SMV Beverage Jamshedpur for
giving me a chance to do my summer training in SMV
Beverage PVT Ltd INDIA,
2
SUBMITTED TO:
PROF. RAJESH SHARMA
SUBMITTED BY:
CHANDAN DAS
I am grateful to Mr. Subroto Chakraborty(T.D.M) have learned the meaning of
marketing and professionalism from this great personality.
I am grateful to Smt. Mukti Rani(HR Manager) of S.M.V. Beverages I his
exceptional support for my study throughout these 4 weeks.
I also owe my regards to Mr. Ravi Bhaskar (CE) and Adarsh agency (Distributor)
for their co-operation in the successful completion of the project.
I am also grateful to my internal project guide Prof. Rajesh Sharma, UIMS Jaipur,
for giving his guidance through out my training project. The entire experience has
been very encouraging and will certainly help me stand in good stead throughout my
career in future.
I am also thankful to my college director Dr. Neeran Gautam and whole UIMS
family for giving me chance to get such an experience and giving me chance to get an
industrial experience.
3
PREFACE
In this global and competitive era all business activity needs more complex superior
and enhanced technology.
The Beverage industry has been growing tremendously in past few years in the
present scenario the beverage industry become more consumers oriented.
Research becomes a necessary for business activity to accelerate the business
in a greater pace. Researcher shows the current position as well as strength and
weakness of an organization and product, which helps in the formation of business
plan. In the other hand opponents are waiting for us to take erroneous decision and
take advantages of the situation. I can counter their move only through dynamic and
effective tool of marketing research.
So it was a great pleasure to contribute to the dynamic field of marketing in the
Beverage industry.
The name Pepsi co itself is a multinational Brand which does need any sort of
introduction, this brand has been positioned in the mind of customers very well.
4
EXECUTIVE SUMMARY:
PepsiCo organization initiated this project to assess the market potentiality of Pepsi in
the present market. The main motive of this project is to identify the potentiality of
the Pepsi and their other product those they are producing.
The project methodology involved carrying out the preliminary research to gain
insight into the present market sub segment, current trends, growth, players and
potential. Analyzing the requirement and designing questionnaire. Taking interviews,
conducting personal interviews of different type of demographic factors under like
age, income, status. Collating & analyzing data and identifying leads that qualifying
for an offering and formulating recommendation for S.M.V. Beverage Jamshedpur.
In the findings researchers got that Pepsi company is one of the best soft drink
company, because it maintain the quality, taste and also the Company is
maintain good relationship with retailers and they are also distributing their product
to their retailers when they want and the Company also provide them in time.
Theory is important, because it enhances our understanding of business
phenomena and helps managers to think about what they should do. Summer training
or internship training program provides opportunities to apply this theory into the real
business practice.
In the present scenario of competitive marketing, every business institution requires to prepare strategies for efficiently utilizing their available resources and environmental opportunities. At this stage of my learning process I also feel needs for knowing different business strategies that a business organization follows. In this training period I got opportunities to study on some marketing strategies of PepsiCo. And in this report I am going to explain some of those strategies which I had applied in practical during my summer training program.
5
CONTENT
PAGE NO
1. Cover Page
2. Faculty guide Certificate
3. Acknowledgement 14. Preface 3
5. Executive Summary 4
6. Table of Index 5
A. Introduction
a. Introduction to Industry and Company 6
b. Introduction to Topic 21
B. Research process 44
1. Review Literature 49
2. Hypothesis 50
3. Data analysis and interpretation use of statistical tools 51
4. Conclusions & findings 59
5. Recommendation 60
6. Limitations 61
7. Annexure 63
8. Bibliography 65
6
INTRODUCTION
PepsiCo organization initiated this project to assess the market potentiality of Pepsi in
the present market. The main motive of this project is to identify the potentiality of
the Pepsi and their other product those they are producing.
The project methodology involved carrying out the preliminary research to gain
insight into the present market, sub segment, current trends, growth, players and
potential. Analyzing the requirement and designing questionnaire. Taking interviews,
conducting personal interviews of different type of demographic factors under like
age, income, status. Collating & analyzing data and identifying leads that qualifying
for an offering and formulating recommendation for S.M.V. Beverage Jamshedpur.
In the findings researchers got that Pepsi company is one of the best soft drink
company, because it maintain the quality, taste and also the Company is maintain
good relationship with retailers and they are also distributing their product to their
retailers when they want and the Company also provide them in time.
Theory is important, because it enhances our understanding of business
phenomena and helps managers to think about what they should do. Summer training
or internship training program provides opportunities to apply this theory into the real
business practice.
In the present scenario of competitive marketing, every business institution requires to prepare strategies for efficiently utilizing their available resources and environmental opportunities. At this stage of my learning process I also feel needs for knowing different business strategies that a business organization follows. In this training period I got opportunities to study on some marketing strategies of PepsiCo. And in this report I am going to explain some of those strategies which I had applied in practical during my summer training program.
7
KEY AREAS
The key area of my summer training was Ready base & Order base delivery system in terms of satisfaction of shopkeeper at Bistupur and Sakchi (Jamshedpur).
The company had divided his retail outlets on the basis of area wise and character wise. Each of the division is having mainly three types of outlets.
AREA WISE: - The area of my summer training was Jamshedpur and according to the company the whole training area was divided into three parts.
INNER CIRCLE: - These are the main selling point of a company or heart of a city.
In inner circle I mainly consider those selling point or retailers shops which come under the main market area.
OUTER CIRCLE: - These areas are adjacent to the main market area, which is a mixture of residential areas and market areas. In these areas I mainly talk about those retailers shops, which are place d in the residential areas and quite away from the main market...
OUTSKIRTS: - These areas are quite away from the main city and the main market, or the interior areas of the towns.
CHATACTER WISE: - Again there is a division of outlets on the basis of characters
(Type of work done by the retailers) and there are again three types of outlets.
CONVENIENCE OUTLET: - These types of outlets include general stores, beetle shops, stationary shop, medical shop and such type of other shops.
GROCERY OUTLETS: - These types of outlets include grocery stores which indulge in selling of foods and related things used in the home.
EATERY: - It includes restaurants, fast food joints etc.
8
PEPSI CO
Mission and Vision
At PepsiCo, I believe being a responsible corporate citizen is not only the right thing
to do, but the right thing to do for our business.
Mission
Our mission is to be the world's premier consumer products company focused on
convenient foods and beverages. I seek to produce financial rewards to investors as I
provide opportunities for growth and enrichment to
our employees, our business partners and the
communities in which I operate. And in everything I
do, I strive for honesty, fairness and integrity.
Vision
"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.
Guiding Principles
We must always strive to:
9
Care for customers, consumers and the world we live in
Sell only products we can be proud of
Speak with truth and candor
Balance short term and long term
Win with diversity and inclusion
Respect others and succeed together
Type: Public (NYSE: PEP)
Founded: 1965
Headquarters: New York, USA
Key people: Indra Nooyi, Chairman, President & CEO
Industry: Food and beverage
Products:
Pepsi
Tropicana Products
Gatorade
Lay's
Doritos
Frappuccino (for Starbucks)
Mountain Dew
Operating income: $9.51 billion USD (2011)
Gross Profit margin: 57.8%
Employees: 153,000(2005)
10
GROUP OF COMPANIES :
Frito- Lay North America
PepsiCo Beverages North America, PepsiCo International
Quaker Foods North America
11
SOFT DRINK INDUSTRY IN INDIA
India with a population of more than 1.1 billion is potentially one of the largest
consumer markets in the world after china. The consumer market is popularly known
as the FMCG market or the fast moving consumer goods market. Soft drinks come
under this category. Soft drink is basically purchased in India basically for two
reasons namely to quench thirst and for refreshment. The Indian economy currently is
passing through a bullish phase with increasing per capita income. Subsequently the
lifestyle of the Indian consumer is also changing with increased spending on
entertainment, refreshment etc. that is why soft drink companies are looking forward
to India with great enthusiasm in the future to increase their revenue.
The soft drink industry in India dates back to the 1940’s when Parle introduced the
first branded soft drink called gold spot. Cola giant coca-cola was the first foreign
soft drink company to setup its shop in India in 1965. Coca-Cola made a very good
beginning and dominated the market right from the word go. It faced no competition
at that time. The marketing people did not even need to publicize coca- cola. This
extraordinary success of coca-cola can be attributed to the following factors,
Absence of contemporary competitive brand.
The giant image of coca-cola in the western countries preceded their
entry into the Indian market.
Indians at that time were very fond of foreign goods.
Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in
1970. Before this they had introduced a cola flavored drink called pepping which
12
they had to withdrew in the face of stiff competition from coca- cola. But the
overtly conservative Indian government of that time with special interest in safe
guarding the interest of the Indian companies star ted insisting that coca-cola should
agree on the following points in order to continue in India. Coca-cola decided to
windup its operations in 1977 rather than bowing to the Indian government. The
main demands of the Indian government were,
Dilution of equity, as the government felt that lots of foreign
currency was being wasted.
Manufacturing of the secret concentrate in India.
Disclosure of the chemical composition of the concentrate.
The exit of coca-cola left a large vacuum in the soft drink market.
But this also accelerated the growth of several Indian soft drinks. Many new soft
drinks like Frooti, jump- in etc were launched in the form of tetra pack. However the
bottling plants and the distribution networks of these companies were not up to the
mark and left much to be desired. It took these companies almost one year to come
up with new flavors like Campa cola, Rush etc. to survive in the industry.
However Parle, the pioneer in the soft drinks market blazed its way to national
prominence with their product Thumps Up bearing the slogan µhappy days are here
again which became a craze. This particular slogan helped to win over the loyalists of
coca-cola who were in a state of cola shock or cola depression! Soon the soft
drink industry started registering phenomenal growth rates and all parley products
namely Gold Spot, Limca and Thumps Up became the brand leaders in their own
segments. In spite of this the soft drink market had a huge untapped potential. In 1990,
coming of the multinational brand Pepsi and immediately started giving stiff
competition to Parley and Coke. The parent company of Pepsi was founded in 1890 at
13
North Carolina in USA. Its CEO is Roger Enrico. Pepsi Co India Holdings Pvt. Ltd. In
headquartered in Gurgaon and its CEO is Ms. Indra Nyui. In India it has 34 bottling
plants of which 8 are company owned bottling outlets (COBO) and 26 are
franchise owned bottling outlet (FOBO). SMV Beverages is a franchise owned
bottling outlet. Coca-cola reentered the Indian market in 1993 in collaborations with
Parley India Ltd.
14
PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government- owned Punjab Agro Industrial Corporation ( PAIC) and Voltas
India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the
use of foreign brands was allowed; PepsiCo bought out its partners and ended the
joint venture in 1994. Others claim that firstly Pepsi was banned from import in
India, in 1970, for having refused to release the list of its ingredients and in 1993,
the ban was lifted, with Pepsi arriving on the market shortly afterwards. These
controversies are a reminder of "India's sometimes acrimonious relationship with
huge multinational companies." Indeed, some argue that PepsiCo and The Coca- Cola
Company have "been major targets in part because they are well-known foreign
companies that draw plenty of attention." PepsiCo has grown to become one of the
country’s 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.
PepsiCo India and its partners have invested more than U.S. $1 billion since the
company was established in the country. PepsiCo provides direct and indirect
employment to 185,000 people including suppliers and distributors.
PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including Pepsi
Foods Ltd, Frito- Lay India, and Tropicana Beverages Company. The company,
through its subsidiaries manufactures, bottles, and exports fruit juices and carbonated
beverages and packaged snacks such as Lays, Ruffles, Fritos, and Cheetos. PepsiCo
India is based in Gurgaon, India.
15
Pepsi Co nourishes consumers with arrange of products from treats to healthy eats
that deliver joy as well as nutrition and always, good taste. PepsiCo India’s
expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Miranda 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, Tropicana100% fruit juices, and juice based drinks - Tropicana Nectars,
Tropicana Twister, Slice, and the new brand Nimbooz by 7up with real lemon juice.
Local brands-Lehar Evervess Soda,
Dukes Lemonade and Mangola add to the diverse range of brands.
In snacks segment-PepsiCo’s foods company, Frito-Lay, is the leader in the
branded salty snack market and all Frito Lay products are free of trans- fat
and MSG. It manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle
Chips and traditional snacks under the Kurkure and Lehar brands. The company’s
high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options
enhance the healthful choices available to consumers. Frito Lay’s core products,
Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to
significantly reduce saturated fats and all of its products contain voluntary nutritional
labeling on their packets. The group has built an expansive beverage and foods
business. To support its operations, PepsiCo has 43 bottling plants in India, of which
15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s
Frito Lay foods division has 3 state-of-the-art plants.
Pepsi Co’s business is based on its sustainability vision of making tomorrow
better than today. PepsiCo’s commitment to living by this vision every day is
16
visible in its contribution to the country, consumers and farmers. Pepsi Co
India's agri-partnerships with farmers help farmer s across the country grow and earn
more.
Pepsi Co's involvement in Indian agriculture stems from its vision of
creating a cost-effective, localized agri-base in India by lever aging farmers
access to world class agricultural practices. PepsiCo India worked with farmers and
State Governments to improve agri sustainability, crop diversification and raise
farmer incomes. Pepsi Co helped transform the lives of thousands of farmers by
helping them refine their farming techniques and raise far m productivity, and
customized solutions to suit specific geographies and locations.
The most ambitious project is a joint program, launched in 1989, between
PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana and
Punjab Agro Industries Corporation (PAI C) in Chandigarh. The program focuses
on evolving agricultural practices to help Punjab farmers produce internationally
competitive products. Over the last five years, PepsiCo has also collaborated with the
Thapar Institute of Technology to develop a high quality potato seed program.
PepsiCo was a pioneer in the concept of contract farming under which the company
transfers agricultural best practices and technology and procures the
Produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acre
research and demonstration far m in Punjab to conduct far m trials of new varieties of
17
tomato, potato and other crops. The program, which includes seed production, has
successfully evaluated the following crops,
Several varieties of basmati rice more than 200 varieties and hybrids of chilli
25 varieties and hybrids of corn
More than 60 varieties of peanut
More than 100 varieties and hybrids of tomato.
Additionally, the development of new tomato varieties has helped increase
total annual.
Production of tomato varieties from 28,000 tons to over 200,000 tons in
Punjab. Yields
Additionally, the development of new tomato varieties has helped increase total
annual production of tomato varieties from 28,000 tons to over 200,000 tons in
Punjab. Yields have more than tripled from 16 tons to 54 tons per hectare.
Under the program, 6 high-qualities, high- yield potato varieties have also been
introduced to Indian farmers. These new potato seeds have helped to increase far m
income and enabled PepsiCo to procure world class chip-grade potatoes for its Frito
Lay snacks division. The company has partnered with more than 10,000 farmers
working in over 10,000 acres across Punjab, U.P., Karnataka, Jharkhand West
Bengal, Kashmir and Maharashtra for the supply of potatoes. PepsiCo India has also
partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie up with the
United Breweries Group.
PepsiCo India’s technical team also implemented a high quality seed program to
deliver early generation and disease free seeds to farmers.
18
Tropicana- Tropicana product is an American based company, and was
founded in 1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has
been owned by PepsiCo, Inc. Pepsi offers the wide variety of products to meet the
choice and preference from fun for your items to the products choices that contribute
to healthier life style.
KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS PVT. LTD.
PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani 'Nimbooz
by 7Up'
PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus paani 'Nimbooz
by 7Up'. The product, with real lemon juice, no fizz and no artificial flavors, will be
available in three packaging formats of 200 ml returnable glass bottles, 350 ml PET
and 200 ml tetra packs, priced at INR10, INR 15 and INR 10 respectively.
PepsiCo India Holdings Pvt. Ltd. t o Launch Lemon Drink
PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the
lemon drinks category and has plans to introduce a product under 7up brand
ahead of the summer season. The new product would be less carbonated and is
targeted at the mass market for on-the-move consumers.
Headquarter: New York, U.S.
Area served: Worldwide.
19
Industry type: Food and non alcoholic beverages.
Products: Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice, Tropicana
Products:
Nimbooz juice, Aquafina, Fritos, Cheetos, and Lays.
Key person : Indra Krishnamurthy Nooyi (president), and (CEO).
20
ORIGIN OF SOFT DRINK IN JAMSHEDPUR
Late Charan Singh is credited with initiative to set up Soft drink industry in the
city. He was a resident of Phagwara, Punjab and he used to sell soft drink in carts
Domestic tension forced him to march to Jamshedpur 50 year s ago to seek a living
for him. Then he set up his own machine and started bottling without any brand
name. Today his son Mr. Sundar Gurudev is carrying out the legacy, which his father
had left behind. This plant operates only 3 months (summer). Even today Jamshedpur
remembers the great exponent THANDA WALA.
The credit of establishing Jamshedpur in the soft drink map goes to late
Dharamchnd Kamani. During the course of his business trips he was struck with the
idea of setting up of a soft drink industry in Bihar. June 1967 was significant for soft
drink industry in Jamshedpur.
21
S.M.V. BEVERAGES Pvt. Ltd.
SMV Beverages Pvt. Ltd., Jamshedpur is a franchise owned bottling plant
(FOBO) is located on the Tata Kandara road in Adityapur Industrial Area at
Jamshedpur and producing Pepsi range of bottled soft drinks, viz. Pepsi, Mrinda, 7up,
Mountain Dew, Slice and Soda and it has now become a house hold word in the state
of Jharkhand. The previous name of SMV was STEEL CITY BEVERAGES, but in
March 1999 steel city beverage taken over by Mr. S. K. Jaipuria from Mr. N. K.
Kamani along with Rushab Marketing company. He was very much enthusiastic to
increase the production and sales and to nature the whole market of Jhar khand. He
established another plant in the same name of SMV Beverages Pvt. Ltd. And increase
the production from his new plant is 600 bottles per minute. Simultaneously a new
market came in name of Hyderabad Marketing Company, which is creating the needs
of whole Jharkhand state. The company symbolizes self reliance in technology
and ranked as the best bottling company of the country in terms of quality,
efficiency, and productivity. Till 1998 it was under its chairperson Smt. Kokum
Kamani and the country has constantly bagged numerous awards in various
occasions for quality assurance and productivity. In 1993 it bagged top honor s for
the best quality conscious plant among all the Pepsi bottling companies in India.
Steel City Beverages Pvt. Ltd. Was established in the year 1967 and production
commenced in March 1969. At the very start company installed state of art machines
and technology for the production and bottling of soft drink. The bottling plant with a
capacity of 220 bottles per minutes was totally automatic and also had a modern State
of art inter mix machine for bringing forth the right blend of flavors. The company
constitutes to adopt innovative technology in keeping with its policy of constant
22
entered into an agreement with Pepsi food limited for the production and sales of soft
drinks for the people of Jharkhand. Right now there is only one bottling plant of
Pepsi in Jharkhand and it cater the need of all the Pepsi products in Jharkhand. Entire
state is divided into three territories Jamshedpur, Ranchi, and Dhanbad, and one
territory development officer controls each territory.
ENVIRONMENT SCANNING:
The process by which organization monitors their relevant environment to
identify opportunities and threats affecting their business are known as environment
scanning. The external environment in which S.M.V. Beverages Pvt. Ltd. exists
consists of a bewildering variety of factors. These factors (may also be termed as
influences) are events, trends, issues, and expectation of different interested
groups. These factors are explained below.
Events are important and specific occurrences taking place in different
environment sectors
Trends are the general tendencies or the courses of action along which
events takes place
Issues are the current concern that arises in response to events and trends.
Expectations are the demands made by interested groups in the light of their
concern for issues
By monitoring the environment though environmental scanning, the S.M.V.
BEVERAGES Pvt. Ltd. considers the impact of the different events, trends, issues,
and expectation on its strategic management process. Since the environment facing
organization is complex and its scanning is absolutely essential, strategist has to deal
cautiously with the process of environmental scanning is collected
23
systematically. Information related to markets and customers, the changes in
legislation and regulations which have a direct impact on an organization’s activities,
government policy statements pertaining to S.M.V. BEVERAGES Pvt. Ltd. business
and industry and soon, could be collected continuously to monitor changes and take
the relevant factors into account S.M.V. BEVERAGES Pvt. Ltd. conducts special
surveys and studies to deal with specific environmental issues from time to time. Such
studies may be conducted, for instance, when S.M.V. BEVERAGES Pvt. Ltd. has to
undertake special projects, evaluate existing strategies, or devise new strategies.
Changes due to unforeseen development may also be investigated with regard to their
impact on the organization. Today S.M.V. Beverages Pvt. Ltd. stands as a proud
monument the great visionary its founder Late D.N. Kamani and strides forth towards
progress and prosperity for the fulfillment of the ideas of its revered founder.
ONE DAY IN PEPSI PLANT
In summer, when the mercury level crosses 40ÛF we wish to have ice creams or
cold drinks only. And it is as like a dream, if one gets the chance to visit the
production unit of a cold drink plant, and also gets opportunity to have cold drinks
without any limit and cost on such a hot day. Tuesday, 19th of May 2009 was one of
the hottest days in Jamshedpur of this year’s summer and also a dream’s day for
me when I got such an opportunity to visit the production unit of Pepsi of
S.M.V. Beverages Pvt. Ltd.
Jamshedpur. Here I want to share my experience of visiting the production
unit of Pepsi and knowledge I gained after seeing the production processes of
24
different brands of Pepsi. But before going into the deep I would like to thank Mr.
Dhananjay Kumar (M.E), who changed the hottest day into my dream’s day and also
to all staffs of S.M.V. Beverages Pvt. Ltd. Jamshedpur for guiding me during this
visit and sharing their vast knowledge and experience with me.
Pepsi production process:
Any cold drinks (soft drinks) generally contains
Water
Sugar
Flavors or fruit pulp
Chemicals
CO2 gas (in carbonated soft drinks)
The below four ingredients are added with the first ingredient i.e. water and cold drink is
prepared. Here in S.M.V. Beverages Pvt. Ltd. Jamshedpur also the same ingredients are
used to prepare Pepsi and its other brands. All these ingredients are added at
different stages by different processes. The diagram in the next page represents the flow
or sequence of steps involved in S.M.V. Beverages Pvt. Ltd. Jamshedpur for
manufacturing of Pepsi products. Pepsi products are available in different SKUs (stock
keeping units) or packs, e.g. glass bottle, pet bottle, metal can, tetra pack etc. the
preparation of main liquid or drink is same but the machines and equipments used
for filling in different SKUs are different.
25
During my visit to S.M.V. Beverages Pvt. Ltd. Jamshedpur, I saw
Water treatment plant, where water is purified.
Bottle washing plant, where used glass bottles are washed.
Syrup room, where syrup is prepared from sugar.
Bottle filling plant, where bottles are filled with the final product.
Acid room, where caustic soda is kept, which is used for cleaning the
equipments and pipelines after every batch of production.
Yard for keeping empty bottles and ware houses for storing the filled bottles.
The brief introduction of each Plant is given bellow:
Water treatment plant:
Water in S.M.V. Beverages Pvt. Ltd. Jamshedpur, is coming from the Sitarampur
dam on the Kharkai River. It is stored in a reservoir. This raw water is being treated
in the water treatment plant, before the production process starts. Coagulation process
is used here for this purpose. Main chemicals used are ferrous sulphate (FeSO4),
calcium hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these
chemicals in the treatment tank and becomes turbid. All the impurities get settled at
the base and remove the turbidity. Then, it is sent to the carbon tank where all the
microorganisms and chlorines are removed. The water so obtained is completely
free from any kind of impurities and used in further processing. The maximum
alkalinity maintained until as much as 50 ppm.
26
Bottle washing plant:
Used bottles returning from the market are stealthy. Before filling these empty
bottles with new product, these bottles are passed through the bottle washing plant
where these dirty bottles are washed. It is completely an auto process which takes
place within a machine called washer machine. The machine has three compartments.
Bottle for washing are placed on the conveyer come inside the machine and
get successive treatment. Bottles are treated with 4% caustic soda in the first
compartment at a temperature of 100-150Û C. Next these are conveyed to the
second compartment, where bottles are again washed with hot water at a
temperature of 80-100Û C, in the third compartment bottles are treated with
cold or normal water at room temperature. Time duration in each compartment is
10 minutes. Bottles are then sent through the inspection center, where these are
closely watched against white rays of light. Bottles containing any dust or other
unwanted things are removed from the line here.
Syrup room:
Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a
specified ratio into closed container. The temperature of this prepared sugar remains
between 80-100ÛC. This syrup contains some impurities as, sometimes there are
some impurities presents in sugar, so this syrup is filtered to remove all those
contaminations.
Before storing in syrup tanks this syrup it is passed through the cooler where
syrup temperature is reduced to 25-30ÛC. This temperature is maintained throughout
the whole process. Here next flavors are added at a specified quantity with the
syrup used for preparation of Pepsi or other brands.
27
Bottle filling plant:
Next, for preparation of carbonated soft drinks brands like Pepsi, Mirinda, 7UP, and
mountain dew, carbon dioxide gas (CO2) is mixed with this prepared solution. And
for the brand like slice, fruit pulp is added. Now the solution is ready for filling into
the bottles. The washed empty bottles are filled by automatic filler machine. This
machine can fill 60 bottles in one minute. After filling, crowns or caps are fitted on
the filled bottles with the help of crowning machine. Now these filled bottles are
ladled and then sent for packing and storing in the godowns.
Acid room:
There are three tanks in this room. The first tank contains caustic soda, the 2nd tank
contains hot water and the third tank contains cold water. After finishing ever y
batch of production the whole production lines and containers/tanks are washed. And
for this purpose, first of all caustic soda is passed through the pipeline, next hot water
and at the last cold water.
Yard for keeping empty bottles:
S.M.V. Beverages Pvt. Ltd. Jamshedpur has a large area in side its premises. A large
Part of its open area is used for keeping the empty bottles.
Warehouse:
S.M.V. Beverages Pvt. Ltd. Jamshedpur has its own warehouse in side its premises
for storing the produced products. The produced products are sent to the customers
from these warehouses. For transferring the filled bottles inside the company for k-
lifts are used.
28
PEPSICO PACKAGING PROCESS
PepsiCo is an industry leader in packaging- helping to promote and implement
standards for sustainable packaging.
PepsiCo distribute the products in a variety of packages, each carefully
designed to deliver convenience and appeal to the consumers while protecting
the integrity of the products. The team of engineers and packaging suppliers
are dedicated to finding prefer able designs, and are working continuously
towards improving the packaging performance while reducing the packaging
footprint. PepsiCo are committed to bringing the environmental responsibilities to all
areas of the business. PepsiCo are continuously improving the environmental
programs and exploring solutions to environmental challenges through socially
responsible, scientifically based and economically sound methods. Pepsi pass
this commitment along to his suppliers and the consumers in an effort to do our
part. The goals are to design and develop packaging systems that are
environmentally responsible throughout their entire life cycle, inspire consumers
who want to live more environmentally sustainable lives by promoting recycling, and
partner with leading organizations to promote sustainable packaging and
recycling practices. Through ongoing engagement with the packaging suppliers, I
are working towards a position where all of our operations use the most
environmentally suitable packaging available in their country of operation.
29
Pepsico follow five principles of sustainable packaging design:
Reduce: Using less material in the packaging, to conserve natural resources.
Reuse : Increasing use of reusable packaging and increasing the amount of
recycled material in the packaging.
Recycle: Designing packaging for recycling and developing biodegradable and
compostable packaging solutions.
Remove: Eliminating environmentally sensitive materials and processes from the
packaging.
Renew : Increasing use of renewable resources.
In an effort to meet his goals, PepsiCo have launched a global sustainable
packaging policy and formed a Sustainable Packaging Council dedicated to:
Developing sustainable packaging strategies, goals, and targets
Developing alternative packaging material technologies
Supporting responsible disposal practices
Using Less Material in our Packaging
Although beverage containers are the most recycled consumer packaging in the
United States ± and they are designed for recycling, I continue to look for ways to
reduce the amount of packaging used for the products. And I are achieving
success. PepsiCo scientists and packaging specialists have led the way in
30
reducing packaging materials through cost-effective changes in design and
production, known in the industry as "light- weighting." Light-weighting reduces
the amount of raw materials and energy used to make our packages and
generates less waste after the products are enjoyed.
PepsiCo introduced new packaging for half- liter bottles of Lipton iced tea,
Tropicana juice drinks, Aquafina Flavor Splash and Aquafina Alive that contain at
least 20 percent less plastic than the original package. Aquafina has trimmed the
amount of plastic used in its most popular bottle - the half-liter (16.9 oz) bottle -
by 35 percent since 2002. This saves more than 50 million pounds of plastic
annually. Aquafina's half-liter bottle weight has changed from 15 grams to 13.2
grams putting it among the lightest water bottles on the U.S. market.
Reducing and Recycling the Waste
At Frito-Lay, route sales employees return empty cartons from stores to our
plants for reuse or recycling and delivery boxes are used an aver age of six to seven
times, saving nearly 5 million trees a year and keeps 56 million pounds of
cardboard away from landfills. For Frito-Lay's North American and Inter national
products, Frito-Lay recycles packaging film waste from our suppliers' sites for
use in various other products (park benches, boards, etc). Our Quaker Oats
facility in Cupar, Scotland has reduced the amount of corrugate used by 30%
over the past 5 years by moving to cases with open tops and reduced sides. Over the
last five years, PepsiCo U.K. has reduced the amount of plastic used to make
Tropicana and Copella juice bottles by 18 percent. In Mexico, our snack business
saves more than 100 million boxes per year by using every box about seven
times between the distribution center and point of sale. By recycling our boxes up to
seven times, we save on average each year about 45,000 trees, 1,800,000 mz of water
31
and 1,620,000 liters of fuel. The Latin America Beverages business has
optimized beverage packaging projects across Mexico, Peru, Columbia, Bolivia,
Brazil, Argentina, Honduras and Guatemala, resulting in the removal of over 800
tons of packing annually, specifically reducing the need for PET resin for
bottles, corrugate boxes, bottle-top closures and glass. The average Pepsi
bottle contains 10% recycled plastic, more than any other national soft drink
brand. Pepsi-Cola's bottles and cans are among the most recycled packages made
since 1990; more than 150 billion Pepsi container s have been recycled. Across
all our U.S. divisions, initiatives conducted in 2007 to reduce packaging have
resulted in more than 20 million pounds of material reduction across PET bottles,
paper board and corrugated materials.
EVERY DEALER SURVEY (EDS)
The design of competitive marketing strategies begins with competitor analysis.
The main competitor of PepsiCo is Coca- Cola. In market I see three types of outlets
where cold drinks are sold; those are exclusive outlet of PepsiCo, exclusive
outlet of Coca - cola and mixed outlet of PepsiCo and Coca - cola. Every Dealer
Survey refers to the survey of all the three types of outlets of a market segment. I n
this survey I collect the data of various promotional and selling tools (case stock,
number of glow sign, dealer board, bunting etc, and number of visicooler) provided
by PepsiCo as well as Coca - cola present at the outlets. Dealer survey is primary
method by which on gets first hand information with respect to the following
factors:
32
Knowledge of market in terms of:
Name and number of dealers
Location of dealers.
Type of dealers.
Market output i.e. case stock, number of glow sign, dealer board, bunting etc,
and Number of visicooler.
Distribution Effectiveness:
From the dealer survey I can find out the number of dealer s and the stock and the
other details. Non buyers also are located. Activation of non buyers should be done
immediately. With the above knowledge on can increase the number of routes to get
increased dealers coverage and hence also increased more effective sales. Also details
of this have help to check upon the route selling of salesman, so that I can control
them by closely monitoring their performance.
Training group for future executive:
Good investigation from these surveys can be recruited to take up future jobs.
These people will ideally suitable, as they would know the market thoroughly.
They should visit the counter on the daily basis including the remote areas.
Salesman should visit to every outlet on weekly basis.
How to increase distribution effectiveness:
After the above survey, the company can improve the distribution network.
Immediately activeness of non- buyers.
Improve the dealer coverage.
33
Increase the realignment of routes.
Better control thorough route card.
Availability of goods on time.
Therefore, Every Dealer Survey is important keeping in mind that distribution forms
the major marketing activity in our industry and also that through these survey
one acquires knowledge of the market. It should also be added here that continuous
dealer surveys are required because of the following reasons.
As our turn over increases I require skills to tackle problem and dealer survey
help in acquiring first hand as to use the skills effectively.
With our increased growth, investment of money has increased for various
marketing inputs e.g. case stock, advertising, merchandising etc. and by survey
I can get an indication of the areas in which investment should be made to get
the maximum benefits.
Importance of EDS (Every Dealer Survey):
Market Knowledge:
Dealer survey gives the total profile of the market by knowing
Location of dealers.
The type of dealers.
Number of dealers who keep Pepsi and Coca cola and comparing the stock and
awareness of brand.
Take the information about distribution process of company.
Take the information from dealer that which brand of product is more popular or
consumed.
34
Gather the information about scheme which is given by company to dealers.
The marketing inputs with respect to:-
i. Advertising
ii. Vise cooler size
iii. Customer service
Though PepsiCo has entered the market only 15 years ago but it has captured a big
market share and ends the monopoly of Coca cola, which has ruled for 13 years. This
survey enabled us to know,
How many exclusive outlets PepsiCo. , Coca cola and how many mixed outlets
of brands are there in a particular market segment?
What are the promotional kits present at all these three types of outlets
provided by PepsiCo and Coca cola?
What are the gaps? I.e. what are those promotional tools, which can be used to
increase the sale of PepsiCo?
How retailers can be motivated to sale PepsiCo. products instead of Coca cola?
Apart from these, this survey also provide us the information about the sales every
outlets. And this report is useful for planning or taking decisions about how much
amount should be spent for sales promotion for each outlet.
From these aspects I can know how good I am in the market place and those areas
where I are lacking. It also helps us to find out that in some place or areas were the
competitors brand is only available, then by the help of survey I can find out the
reason behind the non availability of PepsiCo products in that specific area. The
knowledge of case stock will indicate our “case-in trade” and that of competitors.
35
This will also indicate our “case velocity” which helps to plan our bottle as well as
whether our distribution is effective or not. If our case stock is low then we may
decide upon a “case stocking” campaign. Therefore, appropriate marketing strategies
can be worked out depending upon the findings.
PLAN -O- GRAM
PEPSICO STRATEGY
PepsiCo provides visicoolers (Refrigerators fitted with glass door) to Pepsi outlets, so
that the retailers can provide chilled Pepsi drinks to consumers. This also increases
the sale of Pepsi Products. Visi- Coolers are of various sizes for instance 165 L,
200L, 220L, 300L, 400L, 440L, 650L, 1200L, and so on. Plan-O-Gram is the
process of filling of visi-cooler with Pepsi products i.e. 7UP, Mirinda, Slice,
Mountain Dew, Aquafina, and Tropicana fruit juice according to the sequence
prescribed by PepsiCo.
As per the research conducted by PepsiCo, Pepsi is the most selling brand followed
by 7UP, Mirinda, Mountain Dew, and Slice. And on the basis of this research
PepsiCo has developed a sequence of different brands fro filling up the visicooler and
also for placing into the shelves. Sequence is as under:
7UP > Mirinda > Mountain Dew > Slice > Aquafina
Pepsi products are available in glass bottles, pet bottles, metal cans, and tetra packs.
The number of bottles, cans and packets filled in visi-cooler.
Objectives
To keep the visi cooler pure.
36
To attract consumers by displaying their favorite brands or to help the
consumers in finding their favorite flavor and brand.
To attract consumers by displaying different brands.
To promote the sales of all flavors or brands.
To motivate the retailers for effective utilization of visicooler fro selling Pepsi
brands
To beat the competitors and to lessen the sale of substitute brands available in
the market.
DISTRIBUTION CHANNEL
My field of study will look into the following aspect:- Market research on
distribution strategy.
The main purpose of trade is to supply goods to the consumers living in far off
places. As goods and services moves from producer to consumers they may have to
pass through different individuals. The middlemen are the connecting links between
producers and consumers. They perform different functions such as buying, selling,
storage, etc. the middlemen constitute the channel of distribution of goods. Thus, a
channel of distribution is the route or path along which goods move from producers
to ultimate consumers.
The rout taken by goods as they move from producers to consumers is known as
Channel of Distribution.
From the below diagram I can sea that there is just one direct channel i.e. from
producer to the consumer. There are many indirect channels like:
1) PRODUCER > DISTRIBUTER > RETAILOR > CONSUMER
37
2) PRODUCER > CONSUMER
3) PRODUCER > DISTRIBUTER > CONSUMER
If the producer is producing the product on large scale, it may not be possible for him
to sell goods directly to consumers. As such, it sells goods through middlemen. These
middlemen may be wholesalers or retailers. A wholesaler is a person who buys goods
in large quantity from producers: where as a retailer is one who buys goods from
wholesalers and producers and sells to ultimate consumers as per there requirement.
The involvement of various middlemen in the process of distribution constitutes the
indirect channel of distribution. Let us look in to some of the important indirect
channels of distribution.
DISTRIBUTOR
Distributors are one of the important middlemen in the channel of distribution who
deals with the goods in bulk quantity. They buy goods in bulk from the producers and
38
PRODUCER
DISTRIBUTER RETAILER CONSUMER
sell them in relatively smaller quantity to retailers. In some cases they also sell goods
directly to the consumers if the quantity to be purchased is more. They usually deal
with a limited variety of items and also in a specific line of product: like iron & steel,
textile, paper, electric appliances, etc. let us know about the characteristics of the
distributors.
Characteristics of distributors:
i. Distributors buy goods directly from producers and manufacturers.
ii. Distributors buy goods in large quantities and sell in relatively smaller
quantity.
iii. They sell different varieties of a particular line of product.
iv. They may employ a number of agents or workers for distribution of
products.
v. Distributors need large amount of capital to invest in there business.
vi. They generally provide credit facility to retailers.
vii. He also provides financial assistance to the producers or manufacturers.
FUNCTIONS OF DISTRIBUTORS
a) Collection of goods: A distributor collects goods from producers in large
quantity.
39
b) Storage of goods: A distributor collects the goods and stores them safely in
warehouse, till they are sold out.
c) Distribution: A distributor sells goods to different retailers. In this way he
also performs the function of distribution.
d) Financing: The distributor provides financial support to producers and
manufacturers by sending money in advance to them. He also sells good to the
retailers on credit.
e) Risk taking: The distributor buys finished goods from the manufacturer and
keeps them in warehouse till they are sold.
SWOT ANALYSIS
In order to get clear under standing of the position of Diet Pepsi in the various
markets I did a SWOT analysis from the data obtained from the survey
and the various retailer interviews.
STRENGTHS
PACKAGING AND PRICING: - Pepsi has the advantage of having provided
the same kind of health based carbonated drink the Slim Diet Pepsi Can which
in comparison to the Diet coke is a much more attractive offering because it is
slim sleek equally healthy and way cheaper.
DISTRIBUTION: - As already mentioned Pepsi India has one strongest and
most efficient sales and distribution networks not only in India but also
throughout the globe. Also in the particular market where the survey was done
40
the sales people have developed network which is powerful enough to make or
break sales for Pepsi in any given quarter.
P R- One of the most important factors of success of PepsiCo in India is the
relationship the company and its constituents have with the channel partners. The
Company officials and even the employees of FOBO have very good rapport and
relations with the Channel partners. Also the recently introduced retailer
benefit schemes such as the gold card membership and other free gifts and
offerings not only motivate the retailers but also helped us create visibility for
the Slim Diet Can range in a profound. The experience of working with people
who welcome us with a smile rather than a frown will always be remembered.
NON-CARBONATED:- This is one those strengths of Pepsi that often goes
unnoticed but plays a very important role in success of Pepsi in India and even
around the globe. The non-carbonated segment is dominated by Pepsi,
Tropicana is the market leader in fruit juices. In the mineral water segment,
Aquafina clearly outsells Kinley without any fuss.
Bottling - Pepsi has the advantage of being in partner ship with the largest
bottler in India, the R K Jaipuria Group. RKJ Group controls almost 65% of
the bottling operations of PepsiCo in India. At times this is also seen as a
weakness of Pepsi in India attributing to the fact that the Jaipuria group is so
strong that in certain circumstances it can even defy the parent Company. Pepsi
± Pepsi Cola is the biggest strength of Pepsi as it is the market leader in the
Cola segment and clearly outsells both the products the Coca Cola Company
namely Coke and Thumbs Up. Pepsi controls almost 60% market share in the
Cola segment.
WEAKNESS
41
SECOND MOVER DISADVANTAGE:- Diet Pepsi Cola does have the first mover
advantage which Diet Coke has and this may prove to be major shortcoming also in
the Agra market no extensive efforts have been made to popularize it.
Brand – On a comparative scale Diet Coke proves to have a better brand image in
customer mid than. This compels to incur extra expenditure in advertising, Promotion
and Sponsorship.
MCDONALDS:- This is one of the most important reason why Diet Coke outsells
pepsi worldwide and specially in the United States. Similarly in India Diet Pepsi may
suffers in sales because of institutional sales. Now Pepsi is trying to bridge this gap in
the near future.
EXPENDITURE:- Right from the very beginning Pepsi has hired the biggest and
the most expensive stars in the country as its brand ambassadors and has spend
heavily on advertising which has affected its balance sheet.
VIZICOOLERS:- At presently this is one of the biggest problems faced by Pepsi.
Pepsi is not able to get refrigerators in India so they have to import it other namely
Srilanka, Mauritius etc. Because of this, retailers are facing lots of problems in
vizicoolers.They are not able to get new refrigerators, replacement for old ones, even
the repair work takes lot of time because at times even the spares are not available on
time.
OPPORTUNITIES
Lowest per Capita Consumption:- Even after almost decades of presence in the
market there are growth opportunities for Diet Pepsi in India as here the per capita
consumption of carbonated beverages is one of the lowest in the world .
42
Health Based : Apart from its Juice based drinks portfolio Pepsi can use the Slim diet
can to the maximum by promoting it as a health drink at cheaper prices.
THREATS
NGO’S:- NGO’s like CSE can seriously hamper the sales and prospects of
companies operating in the industry . This happened during the pesticide controversy
involving both coke and Pepsi.
HEALTH:- Growing health awareness among people and some of ill effects of
carbonated beverages have pursued many people to switch over to non-carbonated
beverages that can seriously hamper the long-term prospects of the entire Industry
and not Pepsi.
ENVIRONMENT:- Environmental concerns are often raised because of the massive
amount of water extracted by the bottling plants resulting in the drop in groundwater
level which affects the local population adversely. In India Pepsi Co adopted the
strategy of growth through intensification. In the intensification strategy, it used
market penetration by developing one of the strongest sales and distribution network
in the world and utilizing it to the fullest.
Pepsi did market development by making the aware of the best products available at
their disposal, by using the best technology to produce the products, by properly
communicating with the customer, and making the customer realize that he is
important. Pepsi also explored new markets by venturing new segments like fruit
based beverages, sports drinks, snack food division.
Pepsi expanded and established itself in the market place by constantly developing
new products to the customers like Tropicana, Gatorade and Pepsi Blue. In this way,
43
Pepsi was also able to effectively counter the threats posed by substitutes and new
entrance.
44
RESEARCH
“Comparative analysis of soft drink (pepsico) delivery system between ready base and order base in terms of satisfaction of
shop keeper at Bistupur and Sakchi (Jamshedpur)”
45
INTODUCTION
There is a comparative market research on Ready Base and Order Base delivery
system, which was done by us for S.M.V BREVERAGES LTD, JAMSHEDPUR
(A franchise of Pepsi India Ltd.)
OBJECTIVE OF THE STUDY
To know the distribution strategy & the response of retailers regarding the soft
drinks of PepsiCo.
Description of the Field
Introduction
The field of the study is JAMSHEDPUR town of the JHARKHAND. The study was on
the market research on Pepsi customer and also about the retailers. As it is the GREEN
CITY of JHARKHAND, this region is very developing with every scope to boost the
living standard of people. As the situation is convenient for our investigation to study
“COMPARATIVE ANALYSIS OF SOFT DRINK (PSPSICO)DELIVERY SYSTEM BETWEEN
READY BASE & ORDER BASE IN TERMS OF SATISFACTION OF SHOPKEEPER AT
BISTUPUR AND SAKCHI(JAMSHEDPUR)”.
As field situation as crucial for the research, I find the field informative for research
with the available heads.
Field
The field of my study covers Bistupur and Sakchi areas of Jamshedpur Town for
retailers.
46
RESEARCH METHODOLOGY
INTRODUCTION
Every research needs a systematic or scientific study so that proper authentic
data can be found out.
By systematic it is mean that the study should be best on scientific analysis and
follows a proper and logical methodology.
In order to make our research empirically valid and scientifically relevant a
proper research methodology has been which caters from research design,
research tools, techniques methods, to analysis and proper presentation on data.
In this present study, I have seen in six areas of Jamshedpur town and areas of
retailers in Jamshedpur. A consensus was made regarding the methodology to
be adopted before going to the field which would be intended with the selected
topic.
METHODS OF DATA COLLECTION
Primary Data
Secondary Data
Primary Data Collection:-
Primary data can be collected by three ways:
1. Observation
2. Experiment
3. Surveys
47
But here, only survey method of data collection is preferred which is very suitable to
reach the researchers motto.
Research Instrument: Printer questionnaire was used as the research instrument to
collect the required information. Separate questionnaires were prepared for retailers
survey and interview was taken by the help of the questionnaire.
Area of Survey: The survey was conducted in the different localities of Jamshedpur
City.
Sampling Plan: - Sampling plan consists of:
a) Sampling Unit: - The retailer of grocery shop, general store, betel shop,
medicine store was selected from different place of Jamshedpur.
b) Sample Size: - For retailer’s survey 100 retailers were taken as sample size.
c) Sampling Procedure: - Cluster sampling producer was followed.
d) Sampling Method: Data were collected by retailers survey. The retailer
directly conducted and interviewed at their retail counter.
48
SELECTION OF SAMPLES
When a small group is taken as the representative of the whole, the study is taken as
sampling study. The whole group from which the samples have been drawn is
technically known as universe or population and the group selected for the study is
known as sample. The sample is very small as compared to the universe which may
inconvenient yet it fulfills the aim of the topic selected to be studied. As sampling
method simple random sampling design was taken. Because the samples or the
respondents were selected on the random basis without any bios.
DATA COLLECTION (Tool and Techniques used)
Data are of two types, i.e. Primary and Secondary. To collect primary data
from different source, along with samples, different tool and techniques will be
used.
The methods of primary data collection i.e. adopted that present study are
interview method (structured), questionnaires method (both open and closed
ended) also the observation method.
49
REVIEW OF LITERATURE
To explore the reasons behind these developments this study will analyze the
marketing initiatives and policies of PepsiCo India in detail with particular focus on
its partner relationship management.
The above-mentioned objectives can be achieved by carrying a proper and planned
research involving different types and methods. The data collected followed the
foundations for the study and gave a platform for the analysis and findings which
lead to the fulfillment of the objectives.
The data collected for research is primary and secondary. Primary data is collected by
observation, interviews and questionnaires. While secondary data is collected from
the internet through different case studies and reports on the CSD industry.
Observation method was carried in Allahabad to know the market position and
market share of PepsiCo products. Interviews of people from the sales department
were conducted to know the sales and distribution network and marketing policies of
PepsiCo India, while questionnaire method was used to know about the customer
perception of the slim diet can portfolio. Secondary data is used to know about the
CSD industry and the Company i.e. PepsiCo.
The data collection and analysis paves way for the recommendation ad conclusion of
the study that reveals some important findings regarding the strategy and corporate
structure and strategy of PepsiCo India
50
HYPOTHESIS TESTING
Chi square Test:
Chi square test is a very important Non parametric test. It is widely used in understanding the fitness pattern of observed data and expected data. Thus it also called goodness of fit test. It also helps to determine the dependency of categorical variables.
Objective:
To identify whether there is any dependency of delivery system between ready base & order base at Bistupur and Sakchi (Jamshedpur).
Null Hypothesis:
“There is no significant difference Ready base & Order base delivery system in terms of satisfaction of shopkeeper at Bistupur and Sakchi (Jamshedpur)”
Satisfaction of shopkeeper on delivery system matrix:
OBSERVED Order base Ready base TOTAL
BISTUPUR 54 (A) 46 (C) 100 (x)
SAKCHI 53 (B) 47 (D) 100 (y)
107 (X) 93 (Y) 200 (T)
EXPECTED Order base Ready base TOTAL
BISTUPUR 53.7 (A’) 46.5 (C’) 100.2 (x’)
SAKCHI 53.5 (B’) 46.5 (D’) 100 (y’)
107.2 (X’) 93 (Y’) 200.2
Formula:
51
Expected Frequency: (X X x)/T
Group Observed Expected (O-E) (O-E)2 (O-E)2/E
A 54 53.7 0.3 0.09 0.0016
B 53 53.5 -0.5 0.25 0.0046
C 46 46.5 -0.5 0.25 0.0053
D 47 46.5 0.5 0.25 0.0053
χ2 = ∑(Oij – Eij) = 0.0168
Eij
INTERPRETATION:
At 95% of confidence level with (c-1)(r-1) = 1 degree of freedom the tabulated value
is 3.87
Our value is 0.0168<3.87. I can say that there is no difference of delivery system
between ready base & order base in terms of satisfaction of shopkeeper at Sakchi and
Kadma (Jamshedpur).
DATA ANALYSIS
52
I have collected the primary data through questionnaire & secondary data using
shopkeepers, print media, internet etc. Here I got total 200 respondents in which
different shopkeepers review at Bistupur and Sakchi. Among total 327 respondents
are belongs to this market.
Pepsi29%
Coca Cola40%
Both31%
Q.1) Which company's soft drink you want to keep in your shop?
Q.2) Why do you like keep it?
53
2.Why do you like keep it ?
(COCA COLA)
Availability Delivery Scheme Behavior of vendor
Demand0
5
10
15
20
25
Series1
2.Why do you like keep it ?
(PEPSI)
Availability Delivery Scheme Behavior of vendor
Demand0
5
10
15
20
25
0
18
23
7
2
Series1
54
Pepsi co45%
Coca Cola47%
Both8%
Q.3) Which company's service you like most ?
43%
57%
Q.4) Which system of delivery you like most ?
4. Which system of delivery you like most ?Ready basedOrder based
55
Scheme16%
Desired amount
26%
All kind of soft drink23%
Different types of bottle13%
Get the soft drink in time21%
Q.5) In ready base what kind of facalies you get from vendor /company ?
Not get desired amount
23%
Not get all kind of soft drink20%
Not get different type bottle14%
Not get the supply in time16%
No problem27%
Q.6) In ready base what kind of problem you faced ?
56
Scheme20%
Desired amount
27%
All kind of soft drinks25%
Different type of bottle12%
Get the soft drink in time15%
Q.7) In order base what kind of facilities you get from vendor / company ?
Not get desirable amount9%
Not get all kind of soft drink14%
Not get different types of bottles
20%
Not get the supply in time24%
No problem33%
Q.8) In order base what kind of problem you faced ?
57
DELIVERY DISTRIBUTION AT BISTUPUR
ORDER BASED READY BASEDBISTUPUR
42
44
46
48
50
52
54
56
Series1
58
DELIVERY DISTRIBUTION AT SAKCHI
ORDER BASED READY BASEDSAKCHI
44
45
46
47
48
49
50
51
52
53
54
Series1
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha
Based on
Standardized
Items
N of Items
.681 .690 4
Case Processing Summary
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N %
Cases Valid 16 32.0
Excludeda 34 68.0
Total 50 100.0
a. Listwise deletion based on all variables in the
procedure.
Inter-Item Correlation Matrix
ORDER READY ORDER1 READY1
ORDER 1.000 .512 -.116 .688
READY .512 1.000 .308 .552
ORDER1 -.116 .308 1.000 .201
READY1 .688 .552 .201 1.000
Scale Statistics
Mean Variance Std. Deviation N of Items
12.4375 5.729 2.39357 4
Statistics
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ORDER READY ORDER1 READY1
N Valid 54 46 53 47
Missing 34 34 34 34
Mean 3.1875 3.0625 3.1250 3.0625
Median 3.0000 3.0000 3.0000 3.0000
Std. Deviation .98107 .77190 .80623 .77190
Skewness .547 -.113 .627 -.113
Std. Error of Skewness .564 .564 .564 .564
Kurtosis -.390 -1.194 .754 -1.194
Std. Error of Kurtosis 1.091 1.091 1.091 1.091
Descriptive Statistics
N Minimu
m
Maximu
m
Mean Std.
Deviation
Varian
ce
Skewness Kurtosis
Statisti
c
Statisti
c
Statistic Statisti
c
Statistic Statisti
c
Statisti
c
Std.
Error
Statisti
c
Std.
Error
ORDER 54 2.00 5.00 3.1875 .98107 .962 .547 .564 -.390 1.091
READY 46 2.00 4.00 3.0625 .77190 .596 -.113 .564 -1.194 1.091
ORDER1 53 2.00 5.00 3.1250 .80623 .650 .627 .564 .754 1.091
READY1 47 2.00 4.00 3.0625 .77190 .596 -.113 .564 -1.194 1.091
Valid N (listwise) 50
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KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .564
Bartlett's Test of Sphericity Approx. Chi-Square 17.474
Df 6.000
Sig. .008
INTERPRETATION:
The calculated value of KMO and Bartlett's Test is 0.564 which is near the expected value 0.6
Rotated Component Matrixa
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Component
1 2 3 4
ORDER -.115 .256 .891 .356
READY .175 .926 .236 .236
ORDER1 .982 .146 -.080 .085
READY1 .118 .256 .357 .890
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
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INTERPRETATION:
From the above two histogram of data, it can be observed that the distribution pattern
of data is normal and optimal. Thus the line over the line diagram is almost perfectly
curve shape. Other variables also show the same data distribution pattern.
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FINDINGS:
I went to know different shopkeeper to take their reviews of satisfaction on
delivery system at two places of Jamshedpur(Bistupur and Sakchi).
I found that the shopkeepers are not satisfied on any particular delivery system.
Order base delivery system is followed more than ready base delivery system.
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RECOMMENDATION:
I give the following suggestion that can be implemented to increase the shopkeeper
satisfaction, customer satisfaction and profitability of the company.
It should depend the partnership arrangement with suppliers and distributers
and make them feel as a part of the company.
More emphasis should be given in retaining and building loyalty among
retailers while at the same time new retailers should be encouraged to sell
Pepsi.
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LIMITATION:
1. Some of the retailer was not ready to be interviewed due to lack of time and
some are not interested in getting interviewed in fear of disclosing their privacy.
2. Sometimes retailers were not able to recall the fact which was asked the
question.
3. Scorching heat in the Jamshedpur city came as a barrier while doing the project.
4. Often retailers are reluctant to provide information related to my project.
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CONCLUSION:
Every thing in this world is made to utilize properly but should be reach at the
proper person or to the proper utilize areas. Otherwise the value added to those
things become in vein. As there is a proverb that, “Far from eye, far from heart” .
Thus marketing role play a very important role in achieving the objectives of a
company. Undoubtly , value utility is created by the manufacture of product or
service but time and place utilities are created by marketing role. According to
Drucker, “both the market and the distribution channels are offen more crucial
than the product”. They are primary and the product is secondary. In an economy
like that of India, where marginal shortages can lead to disproportion distortion in
prices, a dependable and efficient distribution distortion in prices, a dependable
and efficient distribution system is very much essential. The distribution system
creates a value added to all most all products.
All from the above study not withstanding its restructuring efforts, There is no
significant difference Ready base & Order base delivery system in terms of
satisfaction of shopkeeper at Bistupur and Sakchi (Jamshedpur).
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ANNEXURE
Survey: Delivery system of Soft drinks
1) Place:
2) Name of the Shop:
3) Name of the Retailer:
4) Which Company’s soft drink you want to keep in your Shop?
Pepsi co Coca Cola
5) Why would you like keep it?
Availability Delivery Scheme Behavior of vendor
6) Which company’s service you like most?
Pepsi co Coca Cola
7) Which system of delivery you like most?
Ready based Order base
8) In Ready base what kind of facilities you get from vendor/company?
(You can choose multiple options)
Scheme Desired amount All kind of soft drink
Different type of bottle Get the soft drink in time
9) In Ready base what kind of problem you faced? (You can choose multiple
options)
A) Not get desirable amount
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B) Not get all kind of soft drink
C) Not get different type of bottles
D) Not get the supply in time
10) In order base what kind of facilities you get from vendor/company?
Scheme Desired amount All kind of soft drink
Different type of bottle Get the soft drink in time
11) In order base what kind of problem you faced?
Not get desirable amount
B) Not get all kind of soft drink
C) Not get different type of bottles
D) Not get the supply in time
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BIBLIOGRAPHY:
www.pepsizone.com
www.pepsiindia.com
www.wikipedia.com
Phillipcotler
Magazine
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