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“ANALYZING DISTRIBUTION GAPS FOR PEPSI IN CHENNAI CITY;

SUGGESTIONS FOR INCREASING OUTLET PENETRATION AND

PRODUCT AVAILABILITY.”

By

S. BOOPATHY KALEESWARAN



http://www.homeworkping.com/






(REG No: 35104067)

A PROJECT REPORT

Submitted to S.R.M School of Management

In partial fulfillment of the requirementsFor the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

SRM SCHOOL OF MANAGEMENTSRM INSTITUTE OF SCIENCE AND TECHNOLOGY

(DEEMED UNIVERSITY)KATTANKULATHUR -603203

MAY 2006

1

BONAFIDE CERTIFICATE

Certified that this project “ A STUDY ON CUSTOMER PREFERENCE

OF MUTUAL FUND SCHEMES THROUGH PRINCIPAL PUNJAB

NATIONAL BANK ” is the bonafide work of Mr.S.BHARATH KUMAR who has

carried out the research under my supervision. Certified further, that to the best of my

knowledge the work reported herein does not form part of any other project report or

disseratation on the basis of which degree or award conferred on an earlier occasion

on this or any other candidate.

Name of the guide, Name of the HOD,

Mr.S.SENTHIL KUMAR Dr.(Mrs)JAYSHREE

SURESH

EXTERNAL GUIDE

2

ACKNOWLEDGEME NT

I first and foremost thank the Lord God Almighty for giving us grace and knowledge

to complete this project work successfully.

I take this opportunity to convey my gratitude to the Hon’able Chancellor,

Mr. T.R PACHAMUTHU, SRM. Institute of Science and Technology for giving me

this opportunity to pursue this project.

I express my sincere gratitude to Prof. R. VENKATARAMANI, Principal, SRM

Institute of Science and Technology, Dr. JAYSHREE SURESH, DEAN, SRM

School of Management, for giving me this opportunity to develop this project.

I express my sincere thanks to our guide Mr.S.SENTHIL KUMAR, B.E, MBA,

Asst.Professor SRM School of Management for his valuable advice for the

completion of this project.

I am greatly privileged to express my sincere thanks to Mr. RAMESH KUMAR.R,

(HR) for PEPSI Ltd, Chennai for allowing me to do project in this esteemed

organization and for their encouragement and guidance for the completion of this

project.

I express my sincere thanks to all my friends and family members for their constant

support, blessings and co-operation, which they gave me at all steps of this project

work.

3

DECLARATION

I here declare that the dissertation entitled “ANALYZING DISTRIBUTION GAPS

FOR PEPSI IN CHENNAI CITY; SUGGESTIONS FOR INCREASING

OUTLET PENETRATION AND PRODUCT AVAILABILITY” submitted to

S.R.M School Of Management in partial fulfillment of the requirements for the

award of the Master of Business Administration is a record of original project work

done by me under the supervision and guidance of Mr.S.SENTHIL KUMAR B.E,

M.B.A, Asst.Professor of S.R.M School Of Management.

S.BOOPATHY KALEESWARAN

4

INDEX

CHAPTER TITLE PAGE NO

I INTRODUCTION

1.1 INTRODUCTION 1

1.2 OBJECTIVES 5

1.3 LIMITATIONS 6

1.4 SCOPE OF THE STUDY 7

1.5 COMPANY PROFILE 8

1.6 PRODUCT PROFILE 11

II REVIEW OF LITERATURE 14

III RESEARCH DESIGN AND METHODOLOGY 15

IV DATA ANALYSIS AND INTREPREATIOTION 19

V SUMMARY OF FINDINGS 73

VI SUGGESTION 74

VII CONCLUSION 75

BIBLIOGRAPHY

ANNEXURES

5

1.1 INTRODUCTION

“The future isn’t ahead of us .It has already happened.”

- Philip Kotler.

The study is about “ANALYZING DISTRIBUTION GAPS FOR PEPSI IN

CHENNAI CITY ; SUGGESTIONS FOR INCREASING OUTLET

PENETRATION AND PRODUCT AVAILABILITY.”

The purpose of the study is to know about the channels of distribution of the

soft drinks and compare it with the world’s no l brand Pepsi. To pinpoint the areas

where it falls shorts and find out the reasons for it. The areas preferred and chosen

here for the survey is the Chennai City.

DISTRIBUTION

In the field of marketing of distribution indicate routes or pathways through

which goods and services flow, or move from producers to consumers We can define

formally the distribution channel as the set of interdependent marketing institutions

participating in the marketing activities involved in the movement or the flow of

goods or services from the primary producer to the ultimate consumer.

Marketing institutions considered as channel components are:

o All kinds of merchant middlemen , such as wholesalers and retailers

o All Kinds of agent middlemen, such as commission agents, factors

brokers, warehouse – keepers and so on.

o All other facilitating agencies, such as common carriers, bankers

advertising agencies, and so on .The route or channel includes the

manufacture and the ultimate consumer as well as all intermediaries.

o These components are linked in the channel system by one or more of the

marketing flows, such as transfer of title or ownership, physical movement

of merchandise, transmission of marketing information and the flow of

money in the form of payment of prices and other dues. The channel

members right from the producer up to the consumer are interrelated and

6

we have the total distribution system which is responsible for distribution of goods or

service in order to satisfy consumer needs or desires.

Role of Channels of Distribution

In an ever – widening market, particularly in consumer goods market,

distribution channels have a distinctive role in the successful implementation of

marketing plans and strategies. These channels perform the following marketing

functions in the machinery of distribution:

The searching out of buyers and sellers (Contacting)

Matching goods to the requirements of the market(Merchandising)

1. Offering products in the form of assortments or packages of items usable

and acceptable by the consumer /users.

2. Persuading and influencing the prospective buyers to favor a certain

product and its maker(personal selling / sales promotion)

3. Implementation pricing strategies in such a manner that would be

acceptable to the buyers and ensure effective distributions.

4. Looking after all physical distribution functions.

5. Participating actively in the creation and establishment of market for a new

product.

6. Offering pre-and after – sale services to customers.

7. Transferring of new technology to the users along with the supply of

products and paying the role of change agents

8. Providing feedback information, marketing intelligence and sales

forecasting services for their regions to their suppliers.

9. Offering credit to retailers and consumers

10. Risk – bearing with reference to stock holding / transport

Sub- Divisions of Distribution system

Distribution system has two sub-divisions:

1. Channel of distribution

2. Physical distribution. The channel members such as mercantile agents,

wholesalers and retailers are middlemen in distribution and they perform

all marketing functions. Such middlemen are specialized in one or a few

marketing functions. These middlemen facilitate the process of exchange

7

and create time, place and possession utilities through matching and

sorting process. Sorting enables meeting or matching the supply with

consumer.

Physical distribution looks after physical handling of goods, and assures

maximum customer Service. It aims at offering delivery of right goods at the right

time and place to customers.

1. Order Processing

2. Handling of goods

3. Packaging

4. Ware housing

5. Transportation

6. Inventory control and

7. Customer service all middlemen in distribution perform these function , and

they assure putting the product within an arms length of customer desire and

demand.

Middlemen in Distribution

There are two types of middlemen in distribution:

1. Merchant middlemen buy and sell goods on their own account and at their

own risk of loss (e.g.) wholesaler and retailer

2. Agent middlemen who do not take ownership title to good but actively

negotiate the transfer of ownership right from the seller to the buyer. (e.g.)

Selling commission agent or broker.

In his channel management, a manufacturer has to make three decisions:

1. Selection of general channel of distribution to be adopted

2. Number of middlemen at each level and in each market

3. Selection of a particular middlemen for selling ‘ goods ‘ with or without ant

exclusive rights of distribution

Channel System

8

By convention channel of distribution included only merchant middlemen,

agents and brokers. Facilitating agencies such as banks, common carriers, advertising

agencies, warehousing companies were excluded from the channel concept as these

would not take title to or negotiate the purpose and sale of products.

Under the system approach the channel is now recognized as a system

involving flow of

1. Information

2. Marketing communications

3. materials

4. manpower

5. Capital equipment and money. It is no longer merely a collection of

independent business establishment It is a system of flows

6. Flow of goods and people

7. flow of ownership and risk of loss

8. flow of information

9. flow of promotion

10. Flow of negotiation and transaction, ownership, possession and

promotion move forward. Ordering and payment move from

consumers backward. Risk of loss, negotiating activity and

information move forward as well as backward.

Manufacturer – Agent – Wholesaler – Retailer - Consumer

In this channel the producer uses the service of agent middlemen such as s sole

selling agent for the initial dispersion of goods. The agent in turn may distribute to

wholesaler, who in turn sell to retailers. Many textile mills have sole agents for

distribution. We may have a large national distributor such as volt as acting as sole

sales agent for many manufactures. Agent middlemen generally operate at the

wholesale level. They are common in agricultural marketing

In marketing manufactured goods, agent middlemen are used by manufactures

to make themselves free from marketing tasks. An agent middleman sells on

commission basis directly to wholesaler or large retailer.

1.2 OBJECTIVES

9

™ To identify the efficiency of existing distribution system in Pepsi™ To identify the reasons for successfulness of competitor distribution

structure.

™ To identify innovative ways to increase outlet penetration.™ To identify the Pepsi product availability in Chennai City.

10

1.3 LIMITATIONS OF THE STUDY

¾ The study was conducted within limited days because of time concern.So less

samples are taken.¾ The study is only within the Chennai city and not the full market.¾ The comparison is done only with the familiar brands available in the market.¾ The data given by the retailers are only partly truthful.¾ Because of the periodic sale of the soft drinks market there is some

fluctuations in the market within the survey period itself.

¾ The majority of the question in the questionnaire is of choosing. Only the

given options may be narrowed in deriving the data.

1.4 SCOPE OF STUDY

.• It helps to asses the real opinion and mind set of store keeper about the

distribution level they needed.

• It makes the distributers to understand the efficiency of existing

service providers .so that it can create the root for further

improvement.

• It helps to meet the expectation in future in turn that will increase the

volume of sales.• The study is to analyze the distribution gaps and to over come the

complaints of storekeeper.

11

1.5 COMPANY PROFILE

Pepsi-Cola North America, headquartered in Purchase, N.Y., is the

refreshment beverage unit of PepsiCo Beverages and Foods North America, a division

of PepsiCo, Inc. PepsiCo Beverages and Foods North America also comprises

PepsiCo's Tropicana, Gatorade and Quaker Foods businesses in the United States and

Canada.

Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet

Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug

Root Beer account for nearly one-third of total soft drink sales in the United States.

Pepsi-Cola North America's non-carbonated beverage portfolio includes

Aquafina, which is the number one brand of bottled water in the United States, Dole

single-serve juices and SoBe, which offers a wide range of drinks with herbal

ingredients. The company also makes and markets North America's best-selling,

ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks,

respectively.

PepsiCo, Inc. is one of the world's largest food and beverage companies. The

company's principal businesses include:

• Frito-Lay snacks• Pepsi-Cola beverages• Gatorade sports drinks• Tropicana juices• Quaker Foods

PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-

Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats

Company, creating the world’s fifth-largest food and beverage company, with 15

brands – each generating more than $1 billion in annual retail sales. PepsiCo’s success

12

is the result of superior products, high standards of performance, distinctive

competitive strategies and the high level of integrity of our people.

PepsiCo is a world leader in convenient foods and beverages, with 2004

revenues of more than $29 billion and 153,000 employees. The company consists of

Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International

and Quaker Foods North America. PepsiCo brands are available in nearly 200

countries and territories and generate sales at the retail level of about $78 billion.

Many of PepsiCo's brand names are more than 100-years-old, but the

corporation is relatively young. PepsiCo was founded in 1965 through the merger of

Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with

The Quaker Oats Company, including Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needs and

preference -- from fun-for-you items to product choices that contribute to healthier

lifestyles.

PepsiCo’s mission is “To be the world's premier consumer Products Company

focused on convenient foods and beverages. We seek to produce healthy financial

rewards to investors as we provide opportunities for growth and enrichment to our

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

everything we do, we strive for honesty, fairness and integrity.”

Shareholders

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock

Exchange in the United States. The company is also listed on the Amsterdam,

Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash

dividends since the corporation was founded.

Corporate Citizenship

At PepsiCo, we believe that as a corporate citizen, we have a responsibility to

contribute to the quality of life in our communities. This philosophy is expressed in

our sustainability vision which states: “PepsiCo’s responsibility is to continually

13

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.

PepsiCo Headquarters

PepsiCo World Headquarters is located in New York City. The seven-building

headquarters complex was designed by Edward Durrell Stone, one of America's

foremost architects. The building occupies 10 acres of a 144-acre complex that

includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture

collection in a garden setting.

The collection of works is focused on major twentieth century art, and features

works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander

Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens

originally were designed by the world famous garden planner, Russell Page, and have

been extended by François Goffinet. The grounds are open to the public, and a

visitor's booth is in operation during the spring and summer.

PepsiCo International

Pepsi-Cola began selling its products outside the United States and Canada in

the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly

beginning in the 1950s. Today, PepsiCo beverages are available in more than 170

countries and territories. Brands include Aquafina, Gatorade and Tropicana. In

addition to brands marketed in the United States, PepsiCo International brands include

Mirinda, Seven-Up and many local brands.

PepsiCo began its international snack food operations in 1966. Today, products are

available in nearly 170 countries. Often PepsiCo snack food products are known by

local names. These names include Gamesa and Sabritas in Mexico, Walkers in the

United Kingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and

14

others. The company markets Frito-Lay brands on a global level, and introduces

unique products for local tastes.

1.6 PRODUCT PROFILE

Soft Drink

A soft Drink is a drink that contains no (or very little) alcohol, as opposed to a

hard drink, which does contain alcohol. In general, the term is used only for cold

beverages. The term originally refered to carbonated drinks.

Soft drinks contribute to the diet in two ways. Because they are predominately

water, they can help quench thirst and meet the body’s fluid requirement – about two

quarts of liquid a day. In addition, soft drinks sweetened with sugar provide

carbohydrates, which are readily available to the body for quick energy. Although soft

drinks make these nutritional contributions to the diet, the Company markets them as

a source of simple refreshment. Consumers wishing to control their caloric intake can

also choose from our variety of low-calorie soft drinks and bottled water that are

available in most markets.

As long as Individuals balance their food choices, any food (including soft

drinks) can be part of a healthy, enjoyable diet.

The Pepsi company is the world’s leading manufacturer, marketer and

distributor of nonalcoholic beverage concentrates and syrups , used to produce nearly

400 beverage brands.

Brands of Pepsi India

Leading Indian brands of Pepsi are Mirinda, Slice, Mountain dew, Aquafina.

Brands in India

Pepsi:

7 Up:

It is available in SKUs of 200ml RGB, 300ml RGB, 500ml.Pet, and 2l.pet


Mountain dew


Mirinda


15

The Pepsi system adheres not only to national laws on food processing and

labeling, but also to strict standards for exceptional quality.

The companies monitor our success through its customer and consumer

feedback and their in-trade monitoring programs, and this information enables us to

continuously improve their already demanding system.

Awards and Proud Of Pepsi⇒ In early 2003, Pepsi India collected advertiser of the year and campaign of

the year awards for the Pepsi media campaign

⇒ The Company ranking up “First” in the introduction of canned and pet soft

drinks , vending machines and backpack dispensers for crowds of cricket

supporters .

Quality Management System:

16

The Framework of the Pepsi Quality System is very much like our business,

multifaceted with quality at its core. The Pepsi Quality System as shown in the

pyramid above has layers, starting with the Pepsi promise at its pinnacle. The other

layers include Policy, Assurance and Control.

Awards

The Dasna unit near Delhi in Ghaziabad has been awarded the prestigious

“Golden Peacock Environment Management Award – 2004 (GPEMA-2004)” for

excellent environment practices and effective control of environment impact.

2. REVIE W OF LITERATURE

When the statement of problem is formulated, a literary survey was

undertaken to find new insights in connection to this research problem. For this at

first published journals, conference proceedings, company websites were tapped

in relevance to my research problem. Apart from journals and magazines, data are

collected from companies, and other project reports, which are briefed in

Bibliographies.

17

3. RESEARCH METHODOLOGY

Objectives of Research

The main aim of research is to identify the truth which is hidden and which

has not been discovered as yet. The objective of carrying out a research is:

• To gain familiarity with a phenomenon or to achieve new insights into

it.• To portray accurately the characteristics of a particular individual

situation or a group

• To determine the frequency with which something occurs or with

which it is associated with something else• To test a hypothesis of a casual relationship between variables.

Research Design

The formidable problem that follows the task of defining the research problem

is the preparation of the design of the research project, popularity known as the

‘research design’. Decisions regarding what, where, when how much, by what means

concerning an enquiry or a research study conditions a research design. A research

design is the arrangement of the conditions for the collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in

procedure .The study in question is based on ‘descriptive research ‘

Descriptive Research

Descriptive research includes surveys and fact – finding enquires of different

kinds. The major purpose of descriptive research in description of state of affairs, as it

exists as present. The main characteristics of this method are that the researcher has

no control over the variables; he can only report what has happened or what is

happening. The methods of research utilized in descriptive research are survey

methods of all kinds including comparative and correlation methods.

Methods of Data Collection

18

While deciding about the method of data collection the researcher should keep

in mind two types of data viz., primary and secondary.

Primary Data

The primary data are those, which are collected afresh and for the first time

and thus happen to be original in character. There are several methods of collecting

primary data some of them are observation methods, interview method, through

questionnaires, through schedules etc,.

Secondary Data:

The secondary data, on the other hand are those, which have already been

collected and passed through the statistical process, Secondary data may either be

published data or unpublished data.

Collection of Data through questionnaire

This method of data collection is quite popular. In this method a questionnaire

is sent to the persons concerned, with a request to answer the questions and return the

Questionnaire. A questionnaire consists of a number of questions printed in a definite

order on form or a set of forms. The questionnaire is given or provided to the

respondents who are expected to read and understand the questions and write down

the answers in the space meant for the purpose in questionnaire itself. The

respondents have to answer the questionnaire on their own.

Questionnaire Design:

The study was conducted among the share brokers, businessmen, agents and

housewives. The data was collected by means of questionnaire and was classified and

analyzed carefully. Questionnaire is constructed so that the objectives are clear to the

respondents.

In this research, the questionnaire was formed as a direct and structured one.

The type of questions that were included was:

Close-ended questions:

The type of question has only two answers in the form of Yes/No or true/false.

Multiple-choice questions:

19

In this case, the respondent is offered two or more choices. The respondent has

to indicate which is applicable in his case.

Sampling:

When field studies are undertaken, considerations of time and cost almost

invariably lead to selection of respondents i.e., selection of only a few items. Such a

part of the population or a subject of unit, which is provided by some process or other

usually by deliberate selection with the object of investigation, is called a sample. The

selection process is called “sampling technique”. The survey conducted is known as

sample survey.

Here the sample survey is conducted for collection the date for checking ‘the

level of awareness and career opportunity in life insurance industry’ among the

public.

Analysis:

It is done on simple percentage basis. The researcher has introduced simple

percentage system for the analysis of the study. After getting the number of

respondents, who have answered for each scale, percentage for each scale is

calculated and this is the result obtained by means of simple percentage system.

Universe and Sampling:

Sampling

A sample of 50 distributors is drawn from the Chennai city.

Tools for Data Collection:

The method of Date collection applied in the Research work is primary Date

collection method, by using the Questionnaire type of Data collection. Questionnaire

is framed according to the researcher’s need and due care is taken to satisfy the Coca-

cola company’s prime objective to identify the distribution gap in the Chennai city.

Pre-Test:

A researcher need number of visits to the Coco-Cola distribution point which

is located at Chennai and had formal discussion with Area Sales Manager, Executive

20

in Chennai, Distributors, Salesman, Retailers to know about feasibility to conduct the

study.

Data Collection Process:

The questionnaire was distributed to the retailers the researcher assured them

that this study is purely for academic purpose and the details will kept be confidential.

Statistical Analysis:

The Data Collected were carefully analyzed and processed. For this study

percentage analysis were applied to draw meaningful inferences.

4. DAT A ANAL YSIS AND I NTE RPRE TAT ION

TABLE NO.1

RESPONDENTS OP I N ION AB O U T S P EC I FICATION OF SOFT DRINK

OFFER E D IN THEIR STORE

Brand No of respondents Percentage

Pepsi 18 36

Coke 9 18

Both 23 46

Total 50 100

21

INFERENCE:

From the above table it is inferred that out of 5o respondents, 18 respondents

offer pepsi and 9 respondents offer coke in their stores. The remaining 23 respondents

offer both the soft drinks.

CHART NO.1

CHART S HOWING THE RE SP ONDEN T S SPECIFICATION OF SOFT

DRINK OFFERE D IN THEIR ST ORE

50454035302520151050

PERCENTAGE

Pepsi Coke Both

22

TABLE NO.2

RESPONDENTS OP I N ION AB O U T DIF FE R ENT F L AVOURS O F BRAND

OFFERED

Pepsi Brand No Of

Respondents

Percentage Coke Brand No Of

Respondents

Percentage

Mirinda 41 82 Fanta 32 64

Mountain Dew 35 70 Maaza 32 64

Slice 41 82 Thumsup 20 40

Lipton ice tea 30 60 Limca 25 50

7up 41 82 Sprite 32 64

INFERENCE:

From the above table it is inferred that out of the 50 respondents, in Pepsi

brand 41 respondents offer Mirinda, only 30 of them offer Lipton ice tea. In coke

brand 32 respondents offer Fanta, only 20 respondents offer Thumsup.

23

CHART NO.2.1

CHART S HOWING THE RE SP ONDEN T 'S OPINION ABOUT DIFFERENT

FLAVOURS OF A BRAND (COKE)

70

60

50

40

30

20

10

0Percentage

Fanta Maaza Thumsup Limca Sprite

24

CHART NO.2.2

CHART S HOWING THE RE SP ONDEN T 'S OPINION ABOUT DIFFERENT

FLAVOURS OF A BRAND (PEP SI)

908070605040302010

0Percentage

Mirinda Mountain dew SliceLipton Ice Tea7up

25

TABLE NO.3

RESPONDENTS OP I N ION AB O U T THE B RAND WHICH THEY ARE

STORING MORE

BRAND

NO OF

RESPONDENTS PERCENTAGE

Pepsi 33 66

Coke 17 34

Total 50 100

INFERENCE:

From the above table it is inferred that out 50 respondents interviewed, 33

respondents store Pepsi in their stores. The remaining 17 respondents store coke in

their stores among those surveyed.

26

CHART NO.3

CHART S HOWING THE RE SP ONDEN T S OPINION ABOUT THE BRAND

STORING

70

60

50

40Pepsi

30 Coke

20

10

0PERCENTAGE

27

TABLE NO.4

RESPONDENTS OP I N ION AB O U T THE F A ST MOV I NG FLAVOURS IN A

PARTI CULAR BRAND

Flavors (Pepsi) Percentage Flavors (Coke) Percentage

Mirinda 76 Limca 80

Mountain dew 24 Sprite 20

Total 100 Total 100

INFERENCE:

From the above table it is inferred that out of the respondents interviewed, in

Pepsi brand 76 % of respondents feel that Mirinda is fast moving, and then comes

mountain dew with only 24 respondents. In coke brand 80 respondents feel that Limca

is fast moving then comes sprite with 20 respondents among those surveyed.

28

CHART NO.4.1

CHART S HOWING THE RE SP ONDEN T S OPINION ABOUT THE FAST

MOVING FLAVOURS IN A PA RTICULAR BRAND (COKE)

80

70

60

50

40 LimcaSprite

30

20

10

0Percentage

29

CHART NO.4.2

CHART S HOWING THE RE SP ONDEN T S FEEL I NG ABOUT THE FAST

MOVING FLAVOURS IN A PA RTICULAR BRAND (PEPSI)

80

70

60

50

40

30

20

10

0Percentage

MirindaMountain dew

30

TABLE NO. 5

RESPONDENTS OPI NION ABO UT THE F AST MOVI NG BRAND

BRAND

NO OF


Pepsi 35 70

Coke 15 30

Total 50 100

INFERENCE:

From the above table it is inferred that out of the respondents interviewed,

33 respondents feel that pepsi is fast moving their stores. 17 respondents feel that

coke is fast moving in their stores among those surveyed.

31

CHART NO.5

CHART S HOWING THE RE SP ONDEN T S OPINION ABOUT THE FAST

MOVING BRAND

70

60

50

40

Pepsi30

Coke

20

10

0NO OF

RESPONDENTSPERCENTAGE

32

TABLE NO.6

RESPONDENTS OPI NION ABO UT THE Q UANTITY OF THE BOTTLES

QUANTITY

NO OF


200 ml 38 76

300 ml 5 10

500 ml 7 14

1.5 L 0 0

2 L 0 0

Total 50 100

INFERENCE


38respondents prefer 200 ml. 5 respondents prefer 300 ml and 500 ml is preferred by

only 7 respondents among those surveyed.

33

CHART NO.6

CHART S HOWING THE RE SP ONDENTS OPINION ABOUT TH E

QUANTIT Y OF THE BOTTL ES

200 ml

300 ml

500 ml

1.5 L

2 L

34

TABLE NO.7

CHART S HOWING THE RE SP ONDENTS OPINION ABOUT TH E NON-

AERATE D SOFT DRI NKS

BRAND

NO OF


Slice 40 80

Maaza 10 20

Total 50 100

INFERENCE:

From the above table it is inferred that out of the respondents interviewed, 40

respondents prefer slice among non-aerated soft drinks. Only 10 respondents prefer

Maaza among the non-aerated soft drinks among those surveyed.

35

CHART NO.7

CHART S HOWING THE RE SP ONDENTS OPINION ABOUT TH E NON-

AERATE D SOFT DRI NKS

Slice

Maaza

36

TABLE NO.8

RESPONDENTS OPI NION ABO UT TH E B RAND GIVING MORE PROFIT

BRAND

NO OF


Pepsi 29 58

Coke 21 42

Total 50 100

INFERENCE:


29 respondents feel that pepsi is giving more profit. The remaining 21 respondents

feel that coke is giving more profit among those surveyed.

37

CHART NO.8

CHART S HOWING THE RE SP ONDENTS OPINION ABOUT TH E BRAND

GIVING MORE PRO FIT

Pepsi

Coke

38

TABLE NO.9

RESPONDENTS OP I NION AB O UT T H E B RAND HAVING MORE RECALL

VAL UE

BRAND

NO OF


Pepsi 38 76

Coke 12 24

Total 50 100

INFERENCE:


35 respondents feel that pepsi is having more recall value. The remaining 15

respondents feel that coke is having more recall value among those surveyed.

39

CHART NO.9


HAVING MORE RE CAL L VALUE

80

70

60

50

40

30

20

10

0PERCENTAGE

PepsiCoke

40

TABLE NO .10

RESPONDENTS OP I N ION AB O U T THE B RAND WHICH IS PUSHED TO

BLIND CUSTOMERS

BRAND

NO OF


Pepsi brand 27 54

Coke brand 23 46

Total 50 100

INFERENCE:


respondents feel that pepsi brand is pushed to blind customers. The remaining 15

respondents feel that coke brand is pushed to blind customers among those surveyed.

41

CHART NO.10


WHICH IS PUSHED T O BLIND CUSTOME RS

60

50

40

30 Pepsi brandCoke brand

20

10

0PERCENTAGE

42

TABLE NO. 11

RESPONDENTS OPI NION ABO UT THE MO DE OF PURCHAS E

BRAND

NO OF


Cash 45 90

Credit 5 10

Total 50 100

INFERENCE:

From the above table it is inferred that out of the respondents

interviewed, 45 respondents buy the drinks in cash. The remaining 15 respondents

buy in credit among those surveyed.

43

CHART NO .11

CHART S HOWING THE RE SP ONDEN T S OPINION ABOUT TH E MODE

OF PURCHASE

90

80

70

60

50Pepsi

40 Coke

30

20

10

0PERCENTAGE

44

TABLE NO. 12

RESPONDENTS OPI NION ABO UT THE S UPPL Y OF PEPSI BR AND

DISTRIBUTION

NO OF


Whole seller 6 12

agency 44 88

Total 50 100

INFERENCE:


respondents get supply of soft drinks through wholesaler, The remaining 44

respondents get supply of soft drinks through agencies among those surveyed.

45

CHART NO. 12

CHART S HOWING THE RE SP ONDENTS OPINION ABOUT T HE SUPP L Y

OF PEPSI BRAND

90

80

70

60

50Whole seller

40 Agency

30

20

10

0PERCENTAGE

46

TABLE NO. 13

RESPONDENTS OPI NION ABO UT THE M O DE OF DISTRIB UT ION

VEHICLE

NO OF


Lorry 6 12

Van 28 56

Auto 16 32

Total 50 100

INFERENCE:


interviewed, 6 respondents distribute through lorry, 28 of them distribute through

van, only 16 of them distribute through the auto among those surveyed.

47

CHART NO. 13

CHART S HOWING THE RE SP ONDENTS OPINION ABOUT TH E MODE

OF DISTRI BUTION

60

50

40

Lorry30 Van

Auto20

10

0PERCENTAGE

48

TABLE NO .14

RESPONDENTS OP I NION AB O UT THE F REQU E NCY OF WE EK LY

DISTRI BUTION

WEEKLY

DISTRIBUTION

NO OF


Once 8 16

Twice 30 60

Thrice 12 24

Total 50 100

INFERENCE:

From the above table it is inferred that out 50 respondents interviewed,8

respondents gets the stock once in a week, 30 of them gets the stock twice in a week,

the remaining 12 of them gets the stock thrice in a week among .

49

CHART NO. 14


FREQUENCY OF WEEKLY DIS TRIBUTION

60

50

40

Once30

TwiceThrice

20

10

0PERCENTAGE

50

TABLE NO.15

RESPONDENTS OP I N ION AB O U T THE O RD E RS T H ROUGH PHONE FOR

PEPSI

ORDERS FOR

PEPSI

NO OF


Yes 39 78

No 11 22

Total 50 100

INFERENCE:


39 respondents said yes to orders through phone. The remaining 11 respondents said

no to orders through phone among those surveyed.

51

CHART NO.15

CHART S HOWING THE RE SP ONDEN T S OPINION ABOUT T HE ORD E RS

THROUGH PHONE FOR PEPSI

80

70

60

50

40 YesNo

30

20

10

0PERCENTAGE

52

TABLE NO.16

RESPONDENTS OPI NION ABO UT TH E AVAILABILITY OF COOLERS

AVAILABILITY

OF COOLERS

NO OF


Pepsi cooler 34 68

Coke cooler 24 48

Own cooler 22 44

Pepsi & coke cooler 29 58

Coke & own cooler 23 46

Pepsi & own cooler 28 56

All the above 26 52

INFERENCE:


34 respondents use pepsi coolers, 24 respondents use coke coolers, 22 own coolers, 26

respondents use all the above cooler among those surveyed.

53

CHART NO.16


AVAI LABI LITY OF COOLERS

Pepsi cooler

Coke cooler

Own cooler

Pepsi & coke cooler

Coke & own cooler

Pepsi & own

54

TABLE NO.17

RESPONDENTS OP I NION AB O UT THE T IME DURATION OF SERV I CE

FOR COOLERS

No of days

NO OF


3 days 0 0

1 week 11 22

2 weeks 39 78

Total 50 100

INFERENCE:

From the above table it is inferred that out of 50 respondents interviewed, 11

respondents said service is given once in a week and 39 respondents said once in two

weeks.

55

CHART NO.17

CHART S HOWING THE RE SP ONDENTS OPINION ABOUT ATT E NDING

THE COOLER F AILURE

80

70

60

503 days

40 1 week

30 2 weeks

20

10

0PERCENTAGE

56

TABLE NO.18

RESPONDENTS OP I NION AB O UT T H E TIMELY IN FO RMATION OF

OFFERS

TIMELY

INFORMATION OF

OFFERS NO OF RESPONDENTS PERCENTAGE

Yes 43 86

No 7 14

Total 50 100

INFERENCE:


respondents said yes to the timely information of offers. The remaining 7 respondents

said no to the timely information offered among those surveyed.

57

CHART NO.18

CHART S HOWING THE RE SP ONDEN T S OPINION ABOUT THE TIMELY

INFORMATION OF OFFERS

90

80

70

60

50Yes

40 No

30

20

10

0PERCENTAGE

58

TABLE NO.19

RESPONDENTS OPI NION ABO UT THE CLEARING OF THE BAD STOCKS

CLEARING OF THE

BAD STOCKS NO OF RESPONDENTS PERCENTAGE

3 days 0 0

1 week 9 18

2 weeks 41 82

Total 50 100%

INFERENCE:

From the above table it is inferred that out of the 50 respondents, 41

respondents feels that clearing of bad stocks is done within one week, The remaining

nine respondents feel that clearing of bad stocks is done in 2 weeks.

59

CHART NO.19


CLE ARING OF THE BAD S TOCKS

90

80

70

60

50 3 days1 week

402 weeks

30

20

10

0PERCENTAGE

60

TABLE NO.20

RESPONDENTS OPI NION ABO UT THE O FFERS OF PEPSI CO MPANY

OFFERS OF PEPSI

COMPANY NO OF RESPONDENTS PERCENTAGE

Yes 44 88

No 6 12

Total 50 100

INFERENCE:


respondents said yes to offers to Pepsi Company. The remaining 6 respondents said

no to offers to Pepsi Company among those surveyed.

61

CHART NO.20

CHART S HOWING THE RE SP ONDEN T S OPINION ABOUT THE OFFERS

OF PEPSI COMPANY

Yes

No

62

TABLE NO. 21

ASSOCIATION BETWEEN THE FAST MOVING BRAND & BRAND

STORAGE:

FAST MOVING

BRAND

BRAND STORAGE

PEPSI COKE TOTAL PERCENT

AGE

Pepsi 20 11 31 60

Coke 13 6 19 40

Total 33 17 50

Percentage 66 34 100

INFERENCE:


33 respondents said that pepsi is the fast moving brand and 17 of them said coke is the

fast moving brand among those surveyed.

63

CHART NO.21

CHART S HOWING THE ASS O CIATION BET W EEN THE FA S T MOVING

BRAND & BRAND ST ORAGE:

20

18

16

14

12

10 PepsiCoke

8

6

4

2

0

TABLE NO.22

64

ASSOCIATION BETWEEN THE MORE P R OFITA B LE B RAND & BLIND

CUSTOME R:

MORE PROFITABLE

RAW CUSTOMER

PEPSI COKE TOTAL PERCENTAGE

Pepsi 20 13 33 66

Coke 9 8 17 34

Total 29 21 50

percentage 58 42 100

INFERENCE:


29 respondents said that pepsi has more profitable customers 21 of them said coke has

more profitable customers among those surveyed.

65

CHART NO.22

CHART S HOWING THE ASS O C I ATION BET W EEN THE MORE

PROFITABLE BRAND & BLIND CUSTOMER:

20

18

16

14

12

10PepsiCoke

8

6

4

2

0

66

TABLE NO.23

ASSOCIATION BETWEEN THE TIME L Y INFORMATION &

SATISF ACTION WITH THE OFFERS:

TIMELY

INFORMATION

SATISFACTION

WITH OFFERS

YES NO TOTAL PERCENTAGE

Yes 31 5 36 72

No 12 2 14 28

Total 43 7 50

percentage 86 14 100

INFERENCE:


interviewed, 43 respondents said yes to the timely information is satisfactory .7 of

them said no to the timely information among those surveyed.

67

CHART NO.23

CHART S HOWING THE ASS O C I ATION BET W EEN THE TIMELY

INFORMATION & SATISFACTION WITH THE OFFERS:

35

30

25

20YesNo

15

10

5

0

TABLE NO.24

68

ASSOCIATION BETWEEN THE M O RE S T ORING B RAND & B RAND

RECALL VAL UE:

MORE

STORING

BRAND

BRAND RECALL

VALUE

PEPSI X COKE Y TOTAL PERCENTAGE

Pepsi 21 9 30 60

Coke 14 6 20 40

Total 35 15 50

Percentage 70 30 100

INFERENCE:


interviewed, 35 respondents said pepsi has more recall value. 15 of them said only

coke has more recall value among those surveyed.

69

CHART NO.24

CHART S HOWING THE ASS O CIATION BET W EEN THE MORE STORING

BRAND & BRAND RECALLS VALUE:

25

20

15

PepsiCoke

10

5

0

70

More Profit Total

Pepsi Coke

19 10 29

14 7 21

33 17 50

TEST NO: 1

CHI- SQUARE ANALYSIS :

Relationship between Brand storing and more profit.

Brand Storing

Pepsi

Coke

Total

Null Hypothesis (Ho) :

There is no significant relationship between Brand Storing and More profit,

towards using the brands Pepsi and Coke.

Alternative Hypothesis (H1):

There is close significant relationship between Brand Storing and More profit,

towards using the brands Pepsi and Coke.

71

CHI – SQUARE CALCULATION:

Calculated Chi-Square = 1.43

Degrees Of Freedom = 1

Table Value = 3.84

Significant Result = Significant at 5% Level

INFERENCE:

than

It is found from the above analysis that calculated Chi-Square value is lesser

the table value.

CONCLUSION:

There is no significant relationship between the Brand Storing and More

profit, towards using the brands Pepsi and Coke.

72

Fast moving brand Total

Pepsi Coke

27 8 35

11 4 15

38 12 50

TEST NO: 2

Relationship between More recall value and fast moving brand.

More recall value

Pepsi

Coke

Total

Null Hypothesis (Ho) :

There is no significant relationship between Fast moving brand and more

recall value, towards using the brands Pepsi and Coke.

Alternative Hypothesis (H1):

There is close significant relationship between Fast moving brand and more

recall value, towards using the brands Pepsi and Coke.

73

CHI – SQUARE CALCULATION:

Calculated Chi-Square = 2.01

Degrees Of Freedom = 1

Table Value = 3.84

Significant Result = Significant at 5% Level

INFERENCE:

than

It is found from the above analysis that calculated Chi-Square value is lesser

the table value.

CONCLUSION:

There is no significant relationship between the Fast moving brand and more

recall value, towards using the brands Pepsi and Coke

FINDING S

74

• From the research it is found that pepsi is much faster than coke.• The Pepsi dealers visit the retail shop twice a week, but the shop owners

respect frequent visit.

• 78% of the retailers using Pepsi coolers to keep their soft drinks• Majority of the Pepsi retailer expect variety of schemes.• Most of the Pepsi retailers expect the product should be supplied in the

credit system

• Pepsi brand Mirinda ranks first in the sale with 28% and the Coco Cola

brand Fanta next with 26%• Consumption rate of soft drinks is found to be decline after the pesticide

issue.

• Distributors are not nearer to the distribution point so time and money is

wasted.

75

SUGGESTI ONS

• Supply of the product in the credit system can further improve the sales• Collection of feed back from the retailers every month will be very help

full to keep the market steady

• The booked order from the shoppers should be delivered in time.• Number of vehicles used to distribute can be increased in order to

minimize time delay of supply.

76

CONCLUSION

From this project it has been analyzed that Pepsi should concentrate more in the

distribution side and have to increase the outlet in Chennai (Ware house 2). They

have to increase the schemes such that to reach the retailers. Globalization has

made the market system very competitive and the companies should always pay

concentration to satisfy the customer through their retail sellers and keep the

market always steady.

77

BIBLIOGRAPHY

o Kotler Philip , Principles of Marketing , Sultan Chand and Company Ltd

., New Delhi 2002

o Kothari . C . R ., Research Methodology , Wishwa Prakashan , New Delhi

1985 (Reprint 2003)

WEBSITES

www.pe psi.com

78

http://www.pepsi.com/

SALES & DISTRIBUTION OF PEPSI COMPANY

PRODUCTS IN CHENNAI CITY

Name:

Address:

1) Please specify the brand of soft drink offered in your store?

Pepsi Coke

2) Different flavors of brand offered by you?

Pepsi Brand Coke Brand

Mirinda Fanta

7UP Maaza

Slice Sprite

Lipton Ice Tea Thumsup

Mountain Dew Limca

3) Which brand you are storing more?

Pepsi Coke

4) List the fast moving flavors in a particular brand (Ranking Method)?


Mirinda Fanta

7UP Maaza

Slice Sprite

79

Lipton Ice Tea Thumsup

Mountain Dew Limca

5) In your opinion fast moving brand?

Pepsi Coke

6) Which quantity of bottle move fast?

200ml 300ml 500ml 1.5lit 2 lit

7) Among the first drinks (non-aerated) sell faster?

Slice Maaza

8) Which brand gives you more profit?

Pepsi Coke

9) As a seller which brand is having more recall value

Pepsi Coke

10) The brand you would like to give for “blind customer”(RAW customer)?

Pepsi Coke

11) Mode of Purchase (Pepsi)


12) Were you are getting the stock (Pepsi)?

Whole –seller Agency

80

13) Mode of Distribution (Pepsi)?

Lorry Van Auto

14) Frequency of Distribution per week (Pepsi)?

Once Twice Three

15) Can you able to get the supply, by ordering through the phone (Pepsi)?

Yes No

16) To cool the product which cooler are you using (Pepsi)?

Pepsi Cooler Coke Cooler Own Cooler

17) Mentioned the time duration of attending the cooler failure (Pepsi)?

3 days 1 Week 2 Weeks

18) Are you getting the timely information about the scheme (Pepsi)?

Yes No

19) What is the frequency of clearing the bad stocks from the shop (Pepsi)?

3 days 1 Week 2 Weeks

20) Are you satisfied with the offers given by the Pepsi Company (Pepsi)?

Yes No

21) If it is not? Specify the reasons

81

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