1.COMPANY PROFILE-PEPSI CO. (US)
PepsiCo is a world leader in convenient foods and beverages, with
revenues of about $27 billion and over 143,000 employees. The
company consists of the snack business of Frito-Lay North America
and the beverage and food businesses of PepsiCo Beverages and
Foods, which includes PepsiCo Beverages North America (Pepsi-Cola
North America and Gatorade/Tropicana North America) and Quaker
Foods North America. PepsiCo International includes the snack
businesses of Frito-Lay International and beverage businesses of
PepsiCo Beverages International. PepsiCo brands are available in
nearly 200 countries and territories.
Many of PepsiCo's brand names are over 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, in2001.Pepsi-Cola Company- Pepsi-Cola
(formulated in 1898), Diet Pepsi (1964) and Mountain Dew
(Introduced by Tip Corporation in 1948). Frito-Lay, Inc. - Fritos
brand corn chips (created by Elmer Doolin in 1932), Lay's brand
potato chips (created by Herman W. Lay in 1938), Cheetos brand
cheese flavored snacks (1948), Ruffles brand potato chips(1958) and
Rolled Gold brand pretzels (acquired 1961).
Pepsi co is the world leader in the food chain business. It
consists of many companies amongst which the prominent one is Pepsi
cola, frito lay, Pepsi food international, pizza hut, and KFC and
taco bell. The group is presently into three most profitable
businesses namely, beverages, snack foods and restaurants. It has
scores of big brand available in nearly150 countries across the
globe.
The beverages segment primarily market Pepsi diet, mountain dew and
other brands worldwide and 7UP outside the U.S. market. They are
positioned in close competition with Coca-Cola inc. of USA. A point
to be noted is that coca cola get 80% of its profit from
international loperation while same figure of Pepsi co. stand at
6%, the segment is alsoin the bottling plants and distribution
facilities.
When Coca-Cola changed its formula in 1985, Pepsi stepped up
itscompetition with its long time archival claiming victory in the
cola wars.Coke and Pepsi expanded their rivalry to tea in 1991 when
Pepsi formeda venture with #1 Lipton in response to cokes announced
venture with
nestle (Nestea) it has won over 30% of the ready to drink tea
market, a
part of the so called "new age beverages segment.
The beverage industry has witness the phenomenal growth over the
lastfew years necessitating capacity increase and builds up of
commensurateinfrastructure to meet the businessgrowth, which is
accordingly matched.
PepsiCos success is the result of superior products, high standards
ofperformance, distinctive competitive strategies and the high
integrity of our people.
PepsiCo India
PepsiCo entered India in 1989 and has grown to become the countrys
largest selling food and Beverage Company. 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 nourishes consumers with a range of products from treats to
healthy eats that deliver joy as well as nutrition and always, good
taste. PepsiCo Indias expansive portfolio includes iconic
refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in
addition to low calorie options such as Diet Pepsi, hydrating and
nutritional beverages such as Aquafina drinking water, isotonic
sports drinks - Gatorade, Tropicana 100% fruit juices, and juice
based drinks Tropicana Nectars, Tropicana Twister and Slice,
non-carbonated beverage and a new innovation Nimbooz by 7Up. Local
brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to the
diverse range of brands.
PepsiCos 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 Lays Potato Chips, Cheetos extruded
snacks, Uncle Chipps and traditional snacks under the Kurkure and
Lehar brands and the recently launched Aliva savoury crackers. The
companys high fibre breakfast cereal, Quaker Oats, and low fat and
roasted snack options enhance the healthful choices available to
consumers. Frito Lays core products, Lays, 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 36 bottling plants in India, of
which 13 are company owned and 23 are franchisee owned. In addition
to this, PepsiCos Frito Lay foods division has 3 state-of-the-art
plants. PepsiCos business is based on its sustainability vision of
making tomorrow better than today. PepsiCos commitment to living by
this vision every day is visible in its contribution to the
country, consumers and farmers.
COMPANY PROILE :JAIPURIA GROUP IN INDIA
An ambitious venture originates in an ingenious idea. The Jaipuria
Group was a vision of its founder and it has transformed into a
corporate giant in India displaying impeccable credentials. Today,
its a multi-product, multi purpose business conglomerate.The future
holds promises for those who foresee the days ahead and adopt
corporate policies accordingly. The Jaipuria Group was always a
forerunner in this respect. Due to the business acumen and
farsightedness of the leadership, it has established a business
empire with diverse interests in food & beverages, textiles,
education, real estate, waste management & energyprocurement,
Ayurvedic products and manganese mining. Today Jaipurias portfolio
boasts of association with majors like PepsiCo as bottlers.
Leveraging on the trust of its associates, clients and employees,
the group is surging ahead towards a bright future.
JAIPURIA GROUP is a Rs.1500 Crore, family controlled, reputed
business house with over a century of operations in diversified
fields.
The group as on today can boast of expertise and leadership in the
fieldsof food and beverages, textiles and real estate development
with variedinterests in a wide range Of products and services.The
Jaipuria Group under the leadership of the three brothers SK
Jaipuria,RK Jaipuria and CK Jaipuria has today become one of the
leading business houses of the country.
PepsiCo Indias expansive portfolio
Refreshment beverages
PepsiCo India's expansive portfolio includes iconic refreshment
beverages Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain Dew; in
addition to low calorie options such as Diet Pepsi, hydrating and
nutritional beverages such as Aquafina drinking water, isotonic
sports drinks - Gatorade, Tropicana 100%, Tropicana Twister fruit
juices.
Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie
options Diet Pepsi and 7Up Light; hydrating and nutritional
beverages such as Aquafina drinking water, isotonic sports drinks -
Gatorade, and 100% natural fruit juices and juice based drinks
Tropicana, TropicanaTwister and Slice. Our local brands Lehar
Evervess Soda, Dukes Lemonade and Mangola complete our diverse
spectrum of brand.
PepsiCo's food division
Frito-Lay is the leader in the branded salty snack market and all
Frito-Lay's products are free of trans-fat and MSG. It manufactures
Lay's Potato Chips, Cheetos extruded snacks, Uncle Chipps and
traditional snacks under the Kurkure and Lehar brands. The companys
high fibre breakfast cereal, Quaker Oats and low fat and roasted
snack options like Aliva enhance the healthful choices available to
consumers.
PepsiCo SKUs
In 1957 the name of the company was changed to Tropicana
Products,headquartered in Bradenton, Florida. The company went
public in 1957,was purchased by Beatrice Foods Co. in 1978,
acquired by KohlbergKravis & Roberts in 1986 and sold to The
Seagram Company Ltd. in1988. Seagram purchased the Dole global
juice business in 1995.PepsiCo acquired Tropicana, including the
Dole juice business, inAugust 1998.
Today the Tropicana brand is available in 63 countries. Principal
brandsin North America are Tropicana Pure Premium, Tropicana
SeasonsBest, Dole Juices and Tropicana Twister. Internationally,
principalbrands include Tropicana Pure Premium and Dole juices
along withFrui'Vita, Loza and Copella. Tropicana Pure Premium is
the thirdlargest brand of all food products sold in grocery stores
in the UnitedStates.
Gatorade sports drinks were acquired by the Quaker Oats Company
in1983 and became a part of PepsiCo with the merger in 2001.
Gatorade isthe first isotonic sports drink. Created in 1965 by
researchers at theUniversity of Florida for the school's football
team, "The Gators,"Gatorade is now the world's leading sports
drink
Vision of PepsiCo
PepsiCo Mission
"To be the world's premier consumer Products Company focused
onconvenience foods and beverages. We seek to produce healthy
financialrewards to investors as we provide opportunities for
growth andenrichment to our employees, our business partners and
the communitiesin which we operate. And in everything we do, we
strive for honesty,fairness and integrity."
PepsiCo in India
PepsiCo is a world leader in convenience foods and beverages,
with2007 revenues of more than $39 billion and more than
185,000employees across the world. Its world renowned brands are
available innearly 200 countries and territories. PepsiCo gained
entry to India in1989 by creating a joint venture with the Punjab
government-ownedPunjab Agro Industrial Corporation (PAIC) and
Voltas India Limited.This joint venture marketed and sold Lehar
Pepsi until 1991, when theuse of foreign brands was allowed;
PepsiCo bought out its partners.
Advertisement and Add Concept:-
Advertisements are cost effective means to communicatemessages and
ideas to build brand preferences andawareness and it is one of the
most important tools whicha company uses to direct persuasive
communication todirective buyers in public or to educated people to
avoidhard drink and so on.
The basic objective of advertising is sales promotion
salespromotion expenditure have been increasing as a percentof
budget expenditure annually and the growth is likely tocontinue in
future. Our celebrities signed by the PepsiCoare as follows:
For PepsiCo.
Cricketers:-
Sachin Tendulka
Rahul DravidMohd. Kaif.Yuvraj singhHarbhajan singh.Sourav
Ganguly.
Zaheer KhanAjit Agarkar
Cine Stars
Kareena Kapoor
Ranbeer KapoorShahrukhKajolAdnan SamiFardeen KhanAmitabh
Bachhan.
Tennis Stars :-
Leander Paes
Mahesh Bhupati
Football Players
Cyrus Broacha
Bhaichung Bhutia
KEY ELEMENTS OF THE TRADE
1.JO DIKHTA HAI WHO BIKTA HAI: -This is a company slogan,
it is to increase the visibility of the product, the company
stressesmore on increasing the number of outlets than on the
volumes of sales.That is the reason of the company providing
visibility courses to theshopkeepers.
2.A BOTTLE THAT IS CHILLED IS SOLD: -In the industry it is
considered that a bottle is chilled or putting in cooling
compartment issold. That is the reason the policy providing triages
come up becauseaccording to the contract the shopkeeper has to keep
only & onlyPepsis products in the visicooler.
3.A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI: -The
competition is so strong between the two companies i.e. fighting is
onfor each bottle that is to be sold in the market. Competitive
biddinggoes on for each & every prestigious outlet in their
region.Monopolizing entries & fat foods joint s is their first
priority.
4.EMPTY kA HI KHEL HAI: -[Empty plays an important role]: -
As
discussed earlier the distribution points keeps on putting up
distribution schemes for retailers i.e. like two bottles of
solution free.
with the purchase of every one carat of solution. Now these
schemeshave timed well keeping minding the environmental conditions
&schemes provided by the other company. These schemes are
oftwenty-four hours duration. If a scheme is launched & there
is noempty in the market for refill, the whole effort goes in vain
that is thereason is said ki sub empty ka khel hai.
DISTRIBUTION STRATEGIES
A Company can choose any of the following distribution types:
-
Exclusive Distribution
Selective Distribution
Intensive Distribution
PEPSI HAS ADOPTED THE INTENSIVE DISTRIBUTION
STRATEGY.
INTENSIVE DISTRIBUTION:
A Strategy of intensive distribution is characterized by placing
the goodsor services in as many outlets as possible. When the
consumer requires agreat deal of location convenience, it is
important to offer greaterintensity of Distribution. This strategy
is generally used for convenienceitems such as Tobacco, gasoline,
and soap, snack foods & bubblegum.
Manufactures are constantly tempted to move from exclusive or
selectivedistribution to more intensive distribution to increase
their coverage andsales and you could find Pepsi in nursing homes,
confectionery shops,departmental stores; you name it & Pepsi is
available there.
DISTRIBUTION CHANNEL REDIFINED
Pepsi has redefined distribution to strengthen their competitive
advantagein the emerging consumer and market scenario. Their
earlier focus was todrive wide availability and enable easy access
to their brands forconsumers. Now they seek to go well beyond this
distribution paradigm.Their new approach is more holistic touching
consumers in multiple waysat the point of purchase and more
importantly, creating opportunities forcustomers to receive brand
message and experience our brands.
They are proactively addressing these emerging trends by
approachingdistribution and channels in a much broader way. They
are shiftingemphasis from mere reach or availability expansion to
touchingconsumers with a 3- way convergence- of product
availability, brandcommunication and higher level of brand
experience.
They are thus going beyond delivering products and creating
greater
engagement and interaction around the purchasing experience.
Pepsis reinvention of distribution is built on an understanding
ofemerging consumer trends, the retail environment and the growth
driversof our brands.
Pepsis distribution system is a key external resource. Normally it
hastaken years to build and cannot be easily changed. It ranks in
importancewith key internal resources such as manufacturing,
research, engineeringand field sales personals. It represents
significant corporate commitmentto set policies and practices that
constitute the basic fabric on which iswoven an extensive set of
long run relationship.
CHANNEL FUNCTION AND FLOWS
Marketing channel perform the following functions-
To gather the information about potential and current
customers,
and competitors.
To reach agreements on PriceTo list orders with manufacturers.They
provide the successive storage and movement of physical
products.
It can be defined as backward and forward integration i.e. starting
fromsupplier of the raw material to the end customer. The physical
flow ofPepsi from its manufacturing unit at Kosi (Varun Beverages)
to variousretailers in Sahibabad is as follows:
PRODUCT & PACK PROFILE
PRODUCT: -
Carbonated Soft Drinks (CSD) or Soft Drinks as they are
popularlyknown are one of the largest FMCG market in the whole
world with thetotal annual sales around $40 billion. This product
is generally availablein four kinds of packing.
Glass Bottles
Pet Bottles
Cans
Fountain rim
FLAVORS: -
ColaOrangeClear LemonCloudy LemonBerryGingerMango Slice
Out of these products the 70% of the sales of the company come from
theCola brand, which is the market leader in the most part of the
country ofthese kinds of packaging in which the product is
available make them80% of the sales come from these bottles. The
businesses of returnablebottles are very cumbersome and make the
market very complex anddemanding.
FACILITIES PROVIDED BY THE COMPANY TO THE
RETAILER
1. VISI COOLER
65 Liter110 Liter120 Liter165 Liter200 Liter210 Liter220 Liter300
Liter320 Liter330 Liter500 Liter
According to outlet nature, volume & investment of the
outlet.
2.SCHEMES OF VOLUME PURCHASE
Cash discount
Card discount (sampling)
3. DISPLAY MATERIAL
StickersBannersG.S. BoardsD.P.S. BoardsRacksCountersUmbrellas
FINDINGS & OBSERVATION
The reports of each phase of the project had to be supplemented by
theinformation, data, facts and figures and significant findings
and observation to supportthe feasibility of decisions to be taken
on the basis of the Retail mapping Summary or theCDR. The
information so recorded in each phases of the project had to be
listed in orderof their relevance and seriousness and presented in
a form to facilitate immediateinference.
Some of the important observations have been listed below:
Soft drink businesss behavior is not governed by brand loyalty so
the availability
of the right brand, at the right place, at the right time is the
key for winning
consumer in soft drink business.
The most important and satisfying observation was that, PEPSI
had
approximately 64% market share in the soft drinks market in
Dehradoonandsome of its brands like Mirinda Orange and Mountain Dew
were performingabove standards apart from PEPSI Cola in spite of
the Coca Cola with two colaflavor packs i.e., Coke and Thumps
up.
The present distribution system of PEPSI is the best in the entire
FMCG industry
in Dehradoonand the major strength
of PEPSI. The enhancement in the distribution network would
definitely increase
the market share of PEPSI.
The retailers played a very critical role in the increment in the
sales volume of the
product and the had to be kept satisfied in order to increase the
market share byoffering better schemes, discounts, display
materials such as VISIs, racks,counter, signage, wall paintings and
better amount for purchase of shelf space fordisplay.
The existence of sub-dealers and super stockiest are also the major
area of
problem, as they do not move the schemes and other display
materials and incentives information to the retailers, which is one
of the reasons for the
dissatisfaction of retailers.
The cut throat competition between PEPSI and COKE had lead to the
never
ending cola war and price war which has brought down the profit
margins whichis one of the major grievances apart from the common
complains pertaining toschemes, incentives and display
materials.
The other major issue was the supply of PEPSI from the bottling
plants in Delhi
and Punjab against the company policies. These plants supplied the
products at
discounted rates and violated merchandising principles of
PEPSI.
Another critical issue was the presence of duplicate products of
PEPSI in the
market. The details of these outlets have been surrendered to the
company for
action against these outlets.
The position of PEPSI in the corporates was not up to the mark and
Coca Cola
had a better scene in this context. One of the reasons can be
assigned to the
product positioning of PEPSI and Coca Cola.