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Research Methodology Project Report
PROJECT REPORT
ON
VISI PURITY & MARKET STRENGTH OF PEPSI IN LUCKNOW TERRITORY
Submitted By
STUDENT DECLARATION
______________ students of Intg. B.B.A+M.B.A (O&G), Sem. IV, Here by
declared the project report titled “VISI PURITY & MARKET STRENGTH OF
PEPSI IN LUCKNOW TERRITORY” is completed and submitted under the guidance
of Mr. RAKESH SHUKLA (T D M) & Mr. MANOJ PANDEY (CE) original work.
The empirical findings in this report are based on the data collected by us and true
to the best of our knowledge.
Manuj Gupta Lovey TyagiIshita Sood Irfan Ali
PREFACE
Marketing research is the appropriate tool to get most useful information about the market. This information will asset to acquire and analysis information and to make suggestions to management as to how marketing problems should be solved.
The marketing research is the process which links to manufactures, dealers and individuals through information an important part of curriculum of MBA program
we undertook our Project in PepsiCo India Holdings (p) Ltd, a leading Bottling plant of the Pepsi Foods in Bazpur distt- Udham Singh Nagar in Uttrakhand. During the Research, We worked on the project “VISI PURITY & MARKET STRENGTH OF PEPSI IN LUCKNOW TERRITORY.”
We gained valuable experience & knowledge during the survey. The Project consists of Our findings after tabulation of collected data, then analyzed conclusions were drawn and finally suggestions were put forward.
ACKNOWLEDGEMENT
We would like to give my deep sincere regards to those who helped us in the successful completion of the project and preparation of the report.
We would like to thank Mr. Manoj pandey (C. E. PepsiCo), who imparted help support & experience even at the cost of heavy demand of his precious time & busy schedule. Without his help, it would not have been possible to complete this project.
We would also acknowledge Mr. Rakesh Shukla (T.D.M. PepsiCo) for his directions of EDS format.
We would also like to thank all distributor & all Route Agents for their continuous support.
Lastly we would also acknowledge my parents for his well wishes in successful completion of this project. We thank all persons above for the successful completion of my project.
Manuj Gupta Lovey TyagiIshita Sood Irfan Ali
CONTENTS
Executive Summary
Company Profile
History of Company
Product Profile
Organization Structure
Objective Of The Project
Locations Of Bottling Plants Of Pepsi In India
The Market Research Process
Market Area
Descriptive Research Design
Sampling Plan
Data Collection
Analysis of Finding and Observation
SWOT Analysis
Suggestions and Recommendations
Conclusion
Questionnaire
Bibliography
EXECUTIVE SUMMARY
The distribution network of PEPSI is well known for its efficiency but company
constantly strives for the betterment of this system... Channels already exist, what we are
doing is focusing our study on the customer of company i.e., the retailers.
The project VISI PURITY & MARKET STRENGTH OF PEPSI is an integral
step for the assessment, development and betterment of this system. The distribution
system not only comprises the movement of the products but also incorporates the
merchandising of the product, which is very broad in its purview.
The project incorporates the analysis of the performance of PEPSI and probing
into opportunities of increasing the market share in LUCKNOW. The entire process had
to be in an organized manner in order to deliver meaningful results for the purpose of
decision-making. The project was that of market research with surveys and observations
as its major phases with the objective of gathering of all important information material
for strengthening the position of PEPSI in LUCKNOW.
PEPSI boasts of having the maximum market share in the in LUCKNOW and is
in constant process for the betterment of its product performance and customer as well
retailer’s satisfaction.
THE COMPANY PROFILE: PEPSI CO.
Pepsi Cola Beverage business was founded at turn of the century by Caleb
Bradham a New Bern N.C druggist who formulated Pepsi Cola. Pepsi Cola Company
now produces and markets nearly 200 refreshment beverages to retail, restaurants and
food service customers in more then 190 countries and territories around the world and
generates revenue of over 18 billion dollars PepsiCo World Headquarters is located in
Purchase, New York.
Pepsi Co. is the world leader in the food chain business. It consists of many
companies amongst which the prominent ones are Pepsi Cola, Frito-lay, Pepsi food
international, Pizza-hut, KFC and Taco bell. The group is presently into three most
profitable businesses namely, Beverages Snacks foods and Restaurants.
The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and
other brands worldwide and 7UP outside the U.S.market. They are positioned in close
competition with Coca Cola inc. of USA.
The Snacks food divisions manufacture and distribute and markets others snacks
worldwide.
The restaurant segment primarily consists of the operations of the worldwide
Pizza-Hut, Taco bell and KFC chains PFS, PepsiCo’s restaurant distribution operation,
supplies to Company owned and Franchise restaurants in the U.S.
When Coca Cola changed its formula in 1985, Pepsi Stepped up its competition
with its long time archrival claiming victory in the Cola-wars. Coke and Pepsi expended
their rivalry to tea in 1991 when Pepsi formed a venture with No.1 Lipton in response to
Coke’s announced venture with Nestle (Nestea).
“Pepsi Co is going blue”. This was the new color adopted by company to
strengthen its brand globally. Also the company is changed colors from Generation X to
GENERATION NEXT.
Although Pepsi holdings over the years have become diverse in such fields as the
Snacks industry and Restaurants industry, this portfolio will discuss its core business and
its highly successful business of Beverages. The soft drink industry customer base is
SXprobably the widest and deepest base in a world that is flooded with some many
categories. According to Beverage Digest the customer base for soft drinks is a whopping
95% of regular users in the United States. This represents a large field of potential
customers for Pepsi Cola.
Pepsi prefers to segment itself as the beverage choice of the “New
Generation”, “Generation Next”, or just as the “Pepsi Generation”. These terms
adopted in Pepsi’s advertising campaigns are referring to the markets that marketers refer
to as Generation X. The Generation X consumer is profiled to be between the ages of 18
to 29. They have high expectations in life and are very mobile and active. They adopt a
lifestyle of living for today and not worrying about long-term goals. Those Pepsi’s main
emphasis on this segment they also have a focus on the 12 to 18
Year old market. Pepsi believes if they can get this market to adopt their product then
they could establish a loyal customer for life.
Pepsi Cola throughout its 100 years of existence has developed much strength.
One of the strengths that has developed Pepsi into such a large corporation is a strong
franchise system. The strong franchise system was the backbone of success along with a
great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring
Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of
1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder advertising
and promotions. This large budget also allows Pepsi to introduce new products and very
quickly make the consumer become aware of their new products.
Pepsi also has had the good fortune of making very wise investments. Some of the
best investments have been in their acquiring several large fast food restaurants. They
have also made wise investments in snack food companies like Frito Lay, which at
present time is the largest snack company in the world. Probably high on the list of
strengths is Pepsi’s beverage line up.
Pepsi has four soft drinks in the top ten beverages in the world. These brands
are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Some other strong
brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and a license agreement with
Ocean Spray Juices.
PEPSI BOTTLING PLANT BAZPUR
1) In India venture of PepsiCo Inc, United States opened.
2) Its bottling plant in Bazpur distt- Udham Singh Nager in Uttaranchal in the year 1997
and bottling started from the 5 may, 1998.
3) The plant of Pepsi co India holdings (p) ltd, at Bazpur has Effective manpower of 122
that includes both line and Authorities.
4) The bottling plant capacity of India holdings (p) ltd, at Bazpur plant is 1,000 per
minute every day. There are About 60,000 cases of bottles, which are kept for
Bottling purpose.
5) The achievement of the plant include international Quality award (IQA) for house
keeping.
HISTORY
Pepsi is a world leader in convenient foods and beverages, with revenues of about
$25 billion and over 142,000 employees. The company consists of the snack business of
Frito-Lay North America and the beverage and food businesses of Pepsi Beverages and
Foods, which includes Pepsi Beverages North America (Pepsi-Cola North America and
Gatorade/Tropicana North America) and Quaker Foods North America. Pepsi
International includes the snack business of Frito-Lay International and beverage
business of Pepsi Beverages International. Pepsi brands are available in nearly 200
countries and territories.
Many of Pepsi's brand names are over 100-years-old, but the corporation is
relatively young. Pepsi was founded in 1965 through the merger of Pepsi-Cola and Frito-
Lay. Tropicana was acquired in 1998 and Pepsi merged with The Quaker Oats Company,
including Gatorade, in 2001.
Pepsi success in the result of superior products, high standards of performance,
distinctive competitive strategies and the high integrity of our people.
Our 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 employee, our
business partners and the communities in which we operate. And in everything we do, we
strive for honesty, fairness and integrity.
SHAREHOLDERS
Pepsi (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; Pepsi has consistently paid cash dividends since the
corporation was founded.
CORPORATE CITIZENSHIP
Pepsi believes that as a corporate citizen, it has a responsibility to contribute to
the quality of life in our communities. This philosophy is put into action through support
of social agencies, projects and programs. The scope of this support is extensive - ranging
from sponsorship of local programs and support of employee volunteer activities, to
contributions of time, talent and funds to programs of national impact. Each division is
responsible for its own giving program. Corporate giving is focused on giving where
Pepsi employees volunteer.
PEPSI HEADQUARTERS
Pepsi World Headquarters is located in Purchase, New York, approximately 45
minutes from 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, and Alexander
Calder. Alberto Giacometti, Arnaldo pomodoro and Claes oldernberg. The gardens were
originally designed by the world famous garden planner, Russell page, and have been
extended by Francois Goffinet. The grounds are open to the public, and a visitor's booth
is in operation during the spring and summer.
FRITO-LAY NORTH AMERICA AND FRITO - LAY INTERNATIONAL
Pepsi's snack food operations had their in 1932 when two separate events tool
place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food
product - a corn chip - and started an entirely new industry. The product was Fritos brand
corn chips, and his firm became the Frito Company.
That same year in Nashville, Tennessee, Herman W. Lay started his own business
distributing potato chips. Mr. Lay later bought the company that supplied him with
product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay
Company merged in 1961 to become Frito-Lay, Inc.
Today, Frito-Lay brands account more than half of the U.S. snack chip industry.
Pepsi began its international snack food operations in 1966. Today, with
operations in more than 40 countries, it is the leading multinational snack chip company,
accounting for more than one quarter of international retail snack chip sales. Products are
available in some 120 countries. Frito-Lay North America includes Canada and the
United States. Major Frito-Lay International markets include Australia, Brazil, Mexico,
the Netherlands, South Africa, the United Kingdom and Spain.
Often Frito-Lay products are known by local names. These names include
Matutano in Spain, Sabritas and Gamesa, Elma Chips in Brazil, Walkers in the United
Kingdom and others. The company markets Frito-Lay brands on a global level, and
introduces unique products for local tastes.
Major Frito-Lay products included Ruffles, Lay's and Doctos brands snacks chips.
Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips,
Santitas tortilla chips, Rold Gold pretzels and Sun Chips multigrain snacks. Frito-Lay
also sells a variety of snacks dips and cookies, nuts and crackers.
PEPSI-COLA NORTH AMERICA AND PEPSI BEVERAGES
INTERNATIONAL
Pepsi's beverage business was founded at the turn of the century by Caleb
Bradham, a New Bern, North Carolina druggist who first formulated Pepsi-Cola. Today
consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other
Pepsi-Cola products - including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist
and Mug brands - account for nearly one-third of total soft drink sales in the United
States, a consumer market totaling about $60 billion.
Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina
bottled water, Fruit works and All Sport.
In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Liptan
is the biggest selling ready-to-drink tea brand in the United States Pepsi-Cola also
markets Frappuccino ready-to drink coffee through a partnership with Starbucks.
In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an
innovative line of beverages including fruit blends, energy drinks, dairy-based drinks,
exotic teas and other beverages with herbal ingredients.
Outside the United States, Pepsi-Cola soft drink operations include the business of
Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and
territories.
Pepsi-Cola began selling its products internationally in 1934 with its operations in
Canada. Operations grew rapidly begining in the 1950s. In addition to brands marketed in
the United States, major products include Mirinda and Pepsi Mas. Pepsi-Cola North
America includes the United States and Canada. Key international markets include
Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and
the United Kingdom, Pepsi Beverages International also products, sells and distributes
Gatorade drinks as well as Tropicana and other juices internationally.
Pepsi-Cola provides advertising marketing, sales and promotional support to
Pepsi-Cola bottlers and food service coutomers. This includes some of the world's best-
loved and most-recognized advertising. New advertising and exciting promotions keep
Pepsi-Cola brands young.
The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers.
The company also provides fountain beverages products.
GATORADE/TROPICANA NOTH AMERICA
Tropicana was founded in 1947 by Anthony Rossi as a
Florida fruit packaging business. The company entered the concentrate orange juice
business in 1949, registering Tropicana as a trademark.
In 1954 Rossi pioneered a pasteurization process for orange juice. For the first
time, consumers could enjoy the fresh taste of pure not-form-concetrate 100% Florida
orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became
the company's flagship product.
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 Kohlderg Kravis & Roberts in 1986 and sold
to The Seagram Company Ltd. in 1988. Segram purchased the Dole global juice business
in 1995. Pepsi acquired Tropicana, including the Dole juice business, in August 1998.
Today the Tropicana brand is available in 63 countries. Principal brands in North
America are Tropicana Pure Premium, Tropicana Season's Best, Dole Juices and
Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and
Dole juices along with Fru'Vita, Looza and Copella. Tropicana Pure Premium is the third
largest brand of all food products sold in grocery stores in the United States.
A Gatorade sports drink was acquired by the Quaker Oats Company in 1983 and
became a part of Pepsi with the merger in 2001. Gatorade is the first isotonic sports drink.
Created in 1965 by researchers at the University of Florida for the school's football team,
"The Gators. "Gatorade is now the world's leading sport's drink.
QUAKER FOODS NORTH AMERICA
The Quaker Oats Company was formed in 1901 when several American pioneers
in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and
William Heston had established the Quaker Mill Company and registered the now
famous trademark. Seymour wanted his products to be a symbol of honesty, integrity and
strength. The figure of a man in Quaker clothes became the first registered for breakfast
cereal and remains the hallmark for Quaker Oats today.
In Cedar Rapids, lowa, John Stuart and his son, Robert, and their partner, George
Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher. Known as
"The Oatmeal King," had founded German Mills American Oatmeal Company in 1856.
Combining The Quaker Mill Company with the Stuart and Schumacher business
brought together the top oats milling expertise in the country as The Quaker Oats
Company.
The first major acquisition of the company was Aunt Jemina Mills Company is
1926, which to today the leading manufacturer of pancake mixes and syrup.
In 1986, The Quaker Oats Company acquired the Golden Grain Company,
producers of Rice-A-Roni.
Pepsi merged with The Quaker Oats Company in 2001. Its products still have the
eminence of wholesome, good-for-you food, as envisioned by the company over a
century ago.
PEPSI – BRANDS AND PACK PROFILE
BRAND PACKS:
The products are generally available in three kinds of packaging:
GLASS BOTTLES
DISPOSABLE CANS
PET JARS
FLAVOUR PACKS:
PRODUCT RANGE
COLA (Carbonated Soft Drink):
PEPSI
ORANGE:
MIRANDA ORANGE
LEMON:
MOUNTAIN DEW
7UP
MIRANDA LEMON
MANGO:
SLICE MANGO
DRINKING SODA :
EVERVESS SODA(LEHER)
MINERAL WATER :
AQUAFINA
Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known is one of the largest FMCG market in the whole world with the total annual sales of around $40 billion.
Organization Structure
MANAGING DIRECTOR
C.E.O.
Plant Manager
Finance Controller
Personnel Manager
Head of Sales
Quality Contrller Department
Account Officer
Security Officer
M.E.M. T.D.M. M.D.M
A.D.C.
Store Chief Officer Incharge C.E
Production Time Keeper SalesmanDepartment
Shipping Department
ORGANISATIONAL CHART OF SALES DEPARTMENT
DIRECTOR SALES
TERITORY
DEVELOPMENT
MANAGER
MARKETING
DEVELOPMENT
MANAGER
MARKETING
EQUIPMENT
MANAGER
ACCOUNTS
DEVELOPMENT
CO-ORDINATOR
MARKETING
DEVELOPMENT
CONTROLLER
MARKETING
EQUIPMENT
EXECUTIVE
CUSTOMER
EXECUTIVE
MARKETING
EXECUTIVE
SWOT ANALYSIS
STRENGTHS AND WEAKNESSES OF PEPSI CO.
1. Pepsi Cola throughout its 100 years of existence has developed much strength.
One of the strengths that has developed Pepsi into such a large corporation is a
strong franchise system. The strong franchise system was the backbone of success
along with a great entrepreneur spirit. Pepsi’s franchise system and distributors is
credited to bring Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5
billion gallons in the year of 1997.
2. Pepsi also has the luxury to spend 225 million dollars in advertising a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder
advertising and promotions. This large budget also allows Pepsi to introduce new
products and very quickly make the consumer become aware of their new
products.
3. Pepsi-Cola provides advertising, marketing, sales and promotional support to
Pepsi-Cola bottlers and food service customers. This includes some of the world's
best-loved and most-recognized advertising. New advertising and exciting
promotions keep Pepsi-Cola brands young. The company manufactures and sells
soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain
beverage products.
4. Pepsi also has had the good fortune of making very wise investments. Some of the
best investments have been in their acquiring several large fast food restaurants.
They have also made wise investments in snack food companies like Frito Lay,
which at present time is the largest snacks company in the world.
5. Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has four
soft drinks in the top ten beverages in the world. These brands are Pepsi,
Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the
No.1 tea in the United States, Lipton Tea. Some other strong brands are All Sport,
Slice, Tropicana, Starbucks, Aquafina and a license agreement with Ocean Spray
Juices.
6. Pepsi Cola like any company has weaknesses. Ironically, the one strength that has
been credited for most of its success in the past has now become a weakness for
Pepsi. This former strength is the franchise system. The franchise system in Pepsi
Corporate view has become a liability. Pepsi in today’s market must be able to act
as one instead of several separate units.
7. The franchise system has become a hurdle to Pepsi because many of these
franchises have become very strong and will not be dictated by PepsiCo on how
to handle their operations. Some of these franchises are unwilling to support
certain Pepsi products and at times produce their own private label products that
are in direct competition with Pepsi products.
8. Secondly the franchisees are not willing to make capital expenditures to keep up
with Coca-Cola who is a firm believer in reinvesting into their infrastructure
(Coca Cola at present time does not operate a franchise bottling system).
9. As mentioned earlier Pepsi has tried to elevate this problem by spinning off their
interest in fast food restaurants but at present time are still guilty by association to
many of the large fountain accounts. The franchise system has also affected
fountain sales due to the fact franchisees are not willing to buy expensive fountain
equipment to place in accounts mainly because the profit margin is so low and
could take years to recoup their investment. Pepsi also has a weakness in the
international beverage market.
10. Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena. Pepsi
has tried to enter this market by trying to do in three years what took Coke 50
years to do. This area will take years for Pepsi to mature simply due to Coke’s
dominance in the international market and the strong ties that Coke has developed
with these markets and their governments.
11. Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi
customers buy their products because of taste, price, packaging, promotional
factors and of a wide variety of brands. Pepsi customers also buy their products
due to the high accessibility of Pepsi brands.
12. Pepsi products are distributed to many outlets. For example, supermarkets where
Pepsi buys large shelf area and display areas so the customer can find them
easier, viz, Convenience stores, Gas stations, Convenios, Restaurants, Movie
theaters and almost and other conceivable spots.
13. Pepsi has a competitive advantage over Coke because of the image it portrays.
Pepsi promotes itself as the choice of the “New Generation”. Pepsi gets this
advantage by implementing such large marketing projects like “Project Globe”.
This marketing plan, which Pepsi spent 637 million dollars over five years, is to
introduce the new rich deep blue coloring of its packaging. The rich deep blue
coloring represents eternal youthfulness and openness. Marketing plans like this
made Pepsi one of the coolest brands recognized among teens in the top five and
the only beverage product in this category.
14. Another competitive advantage that Pepsi has is in their product Mountain Dew.
Mountain Dew has grown a staggering 74.1% over the last five years. Mountain
Dew has a 6.3% market share and has recently become the No.4 soft drink in
America. At this current pace Mountain Dew will be come the first non-cola to
reach the 1billion gallon mark in one year.
15. Pepsi also has an advantage as an innovator in their field. They are the first soft
drink makers to introduce a new one-calorie soda called Pepsi-One with, just
approved by the FDA, Ace-K.
16. This new sweetener is slated to be a break through for diet soda in which it limits
the after taste associated with diet soda and brings a more cola taste to the
product. Pepsi has always been a strong No.2 against Coke and have become one
of the world’s largest Companies. As far as market share is concerned Pepsi
stands strong.
OPPORTUNITY:
1. High growth rate of cold drink market.
2. Hotel ,restaurants, parks can have good consumption of flavour.
3. Nursing home offering fooding for patients can have good consumption of
mineral water.
4. Major outlet should arrange some schemes for parties marriage and
festivals.
5. Good and tasty flavours for healthy body.
THREATS:
1. Consumers are switching to good for health drink.
Here are just a few vitals of the International Market:
OVERALL MARKET SHARE 1. COCA-COLA 43.9%2. PEPSI COLA 30.9% 3. CADBURY SCHWEPPES 14.5%
BREAKDOWN OF MARKET SHARE 1. COCA-COLA CLASSIC 20.6% 2. PEPSI COLA 14.5% 3. DIET COKE 8.5% 4. MOUNTAIN DEW 6.3% 5. SPRITE 6.2% 6. DIET PEPSI 5.9% 7. 7-U 2.3% 8. CAFFIENE FREE DIET COKE 1.8% 9. CAFFIENE FREE DIET PEPSI 1.0% 10. DR. PEPPER 0.6%
FOUNTAIN SALES (FOUNTAIN SALES ARE CREDITED FOR 27% OF SODA SALES)
1. COCA-COLA 65% 2. PEPSI COLA 23%
MAJOR CREDENTIALS
VARUN BEVERAGES LIMITED RECEIVED “GOLD STANDARD AWARD” FOR PRODUCTION & QUALITY CONTROL FOR THE YEAR 1996-1997.
JAIPURIA GROUP WAS ADJUDGED “BEST BOTTLER” OUT OF MORE THAN 2000 BOTTLERS ALL OVER THE WORLD FOR THE YEAR 1996-97.
LOCATIONS OF BOTTLING PLANTS OF PEPSI IN INDIA
OBJECTIVES OF THE PROJECT
The Project “Visi Purity & Market Strength of PEPSI in LUCKNOW” was
designed on the lines of basic investment decisions to be taken by the senior officials of
PEPSI for the purpose of amendments in the pre-existing distribution network in order to
review and strengthen the routes. The findings of the project are very crucial for the
increment of the market share of PEPSI in the LUCKNOW Market.
Though the process is an ongoing one but the decisions have to be taken on a
strong base, supported by facts and figures and that too on papers. This support can only
be provided with the help of an extensive and through analysis of the market and the data
collected thereof.
The objectives of the project were delivered to us expressesly by the Territory
Development Manager who was the lead or the project head and we had to submit the
day report to him along with the draft report. He was the in charge of the project and gave
guidelines and directions to approach the project.
The objectives of the project are:
To analyze, interpret and study the entire beverage market of LUCKNOW.
Comparative study of the various brands, packs and flavours available in the
market.
Analysis of the strong and weak point of the competitors products and compare it
with PEPSI...
To assess the reach and feasibility of the product and give the output for further
investment for enhancing the distribution network along with assessing the
efficiency of the current distribution system.
Assess the promotional measures in the context to the sales of PEPSI and
focusing our study on the customer of company i.e., the retailers.
To check visi purity.
As obvious that any company is concern with the increase in sales of its products,
our project was in line with the companies’ objectives and all steps incorporate in the
project were directed to give an overview so as to attain its objectives.
THE MARKET RESEARCH PROCESS
The entire project was divided into five phases and each phase had its individual
significance and supplemented each other. The process had to be started from the grass
root level and it was very important to understand the market for this FMCG product
which is very fast in production, distribution and consumption.
The five phases into which the project was divided were:
A. Route RidingB. Retail TrackingC. Corporate TrackingD. Analysis of finding and observationsE. Segregating LUCKNOW for WAP and SAP F. Preparation of Draft Report
The entire process was more of a Descriptive Research type and incorporated a
formal study of the specific problems faced by most FMCG companies an exploring the
opportunities in the untapped market. The survey was conducted on the basis of PEPSI
product preference and evaluation of sales forecast in the new and underdeveloped
market including the evaluation of the advertising and promotional measures. The data
collected had to be systematically arranged, analyzed and reported in a form congenial to
take on the spot decisions.
The observation approach was adopted in the process by gathering the data
essential and material for the decision making and with clear objective of increasing the
market share of PEPSI in the LUCKNOW market. Customer preferences and satisfaction
was also important in assessing the market share but the was very clear that customers
generally do not have loyalty towards the product in the Beverage industry rather what
matters the most is the product availability which will be discussed later.
All the phases mentioned above have been discussed along with the observations,
problems, and other dimensions which have been encountered and experience in detail in
the following pages.
ROUTE RIDING
The Beverage Industry or to be more specific, the Soft Drinks Industry has one of
the most active network in term of its production, supply, distribution, marketing,
consumption and also personal relations at the very second level of its distribution
network so its can be said to be one of the Fastest Moving Consumer Goods Industry.
Due to the above stated reason it becomes very essential to study and analyze the
market of these products from the grass root level. So in the Soft Drinks Company as
PEPSI, route riding becomes the first and foremost step in any of the activities to be
undertaken is it any official so we were no exceptions.
During the very initial days we were required to exercise Route Riding, the
objective of which was:
To understand and analyze the market in its raw and basic form.
To gain an in depth knowledge of the merchandising and processing activities of
the Route Agents and understand the Beverage market.
To undertake the comparative study of the various brands and flavour packs of
all existing beverages or soft drinks market and the market share and growth
potential of each brand individually.
To develop innovative ideas to enhance the distribution system.
The observations which were required to be recorded in were:
The quantity of the cold and warm stocks of all brands and flavours available at
the outlet along with the outlet details.
Inquiring about the satisfaction of the retailers in terms of sales of PEPSI
products, schemes, discounts, combo offers, and the benefits of promotional
activities.
Inquiring about the satisfaction by the current distribution network in context to
product availability of all flavour packs or individual flavours according to
demand of customers, rates, billings.
Inquiring about the behavior and merchandising of RA’s in accordance with the
companies’ regulations and record complaints against RA’s, company or
products, if any.
Inquire about the performance of various brands and flavour packs and
customer’s response to those brands or flavours and also to educate the retailers
about various schemes and incentives to increase sales volume.
Last but not the least, assessment of the effectiveness of, assessment of the
effectiveness of promotional materials and activities like, display boards, glow
signs, signage, wall paintings, posters, banners, racks, shelves, counters, VISI’s,
and also impact of nation wide advertising on brand loyalty by the customers.
The information so collected was required to be filled in the Market Analysis
Sheet (specimen on the next page) and reported to the TDM along with other information
in order of their seriousness. This information has been presented in a graphical form on
the following pages.
On the contrary the Weak Area refers to those areas or routes which are critically low in sales and the targets are tough to achieve and require aggressive marketing support. The demand in these areas is fluctuating or rather feeble. The routes are the area of concern for the company as the demand is very low due to many reasons and the major one is the existence of the player like Coca Cola in the market. Other reasons could be poor distribution network, inadequate availability of the products on the outlet, inadequate promotional measures and marketing support, undeveloped market as that of the interiors etc.
These weak areas had to be identified and the cause of their inferior performance
had to be traced through the Retail Mapping and the company had to be provided with the
facts and figures to take legitimate measure on the basis of the findings of the deficient
performance of the product in these areas. This involved the aggressive marketing
strategy and heavy investment decisions to strengthen these markets. For this purpose the
classification of the outlets into five categories was very crucial along with the other
findings and observations discussed later. These five heads of classification have been
discussed as under.
ON ROUTE :
It refers to the retail outlets, which are covered by the Route Agents and
visited daily for sales and merchandising. The outlet is visited daily and actively
involved in the sales of all brands and flavour packs of PEPSI.
NON EXISTENCE:
It refers to the outlets which were merchandising the product are no more in
existence, i.e., they have diversified their business activity or have closed.
NON POTENTIAL :
It refers to those outlets, which are in existence but have very low potential in
terms of sales or are not keenly interested in merchandising the products of soft
drink.
A careful assessment had to be done in case of Non Potential outlets as they
would turn to be potential in near future. It was also the area of operation of
project to motivate these Non Potential outlets to undertake the merchandising of
PEPSI.
POTENTIAL OUTLETS :
It refers to those outlets, which have the potential for the merchandising of PEPSI
and have the required investment capabilities and can be the profitable Point Of
Purchase of PEPSI by the customers. There were cases in case of these Potential
outlets which were already merchandising PEPSI and those which did not dealt
with beverage products. The possibilities of setting monopoly counter were very
fair at these outlets and were given special attention. The Potential outlets had to
be further classified in two heads as below:
REACHABLE POTENTIAL OUTLETS :
It refers to those Potential outlet which are reachable i.e., the products can be
made available with the PEPSI vans. The reach ability decision had to be
taken in context to the accessibility of the vans at these outlets.
NON REACHABLE POTENTIAL OUTLETS :
It refers to those Potential outlets which are not accessible by the
PEPSI vans. These outlets had to be considered because the sales volume
can be increased at these outlets and so alternative method of distribution
and promotional activities have to be evaluated and worked upon.
RESEARCH METHODOLOGY:
For defining Research Methodology there are three basic types of methods for
marketing research. They are as follows:
1. The observation method
2. The experimental method
3. The survey method inclusive of panel method
In observation method data are collected on the direct observation. No talks take
place. By observing the person the analysis makes the inventory as to product used by
him at his home or kept as retailers stocks. In experimental method it is based on the
concept that small-scale experiment is useful to indicate the expectations of large-scale
experiment.
The survey method information is gathered directly from individuals in three ways:
1. Telephone
2. Mail
3. Personal Interview
This survey method is also suffered to as the "Questionnaire Technique"
There are also aggregated by:
1. In factual survey
2. Opinion survey
3. Interpretative survey
In my project point of view I have taken mainly the method of
1. Survey by route ride
2. Personal interview by Questionnaire Technique
1. In the survey method by route ride I usually went with the Pepsi van also with Pepsi
sales man. I met the retailers from outlet to outlet. This survey method helps me a lot.
It saves time and made familiar to the way and outlet of the LUCKNOW.
2. In the personal interview by Questionnaire Technique I usually gathered information
by face to face interviewing. In this survey method I saw that the respondent was
shown the exhibit and advertisement to give his personal opinion and attitude. In this
method the direct interaction on occurred with the retailers and I could collect the
reliable information from them. It had also cost disadvantage that's why some areas
were difficult to cover.
Descriptive Research Design
Descriptive research studies are those studies which are concerned with described
the characteristics of particular individual. In descriptive as well as in diagnostic studies,
the researcher must be ale to definite clearly, what he wants to measure and must find
adequate methods for measuring it along with a clear cut definition of 'population' he
wants to study. Since the aim is to obtain complete and accurate information in the said
studies, the procedure to be used must be carefully planned. The research design must
make enough provision for protection against bias and must maximize reliability, with
due concern for the economical completion of the research study.
Research process
Defining Research Problem
Intensive Literature Survey (If applicable)
Research Design Feed back
Collection of Data
Analysis of Data
Recommendations and Report Writing
SAMPLING PLAN
1. The universe studied retailers in the areas of LUCKNOW.
2. Sampling unit is a single retail outlet which may be provisional store, stationary shop,
grocery shop, kiosks, eatery, chemist shop, others.
3. Elements: retailers
4. The geographical limit is the area of LUCKNOW
5. Keeping the number of retailers and consumer in mind, the sample size arrived at was
176.
6. The sampling method followed was judgmental sampling.
SAMPLING TECHNIQUES
No. of Sample Size - 100
Judgmental Sampling:
A method of non-probability sampling that is sometimes. Advocated is the
selection of universe items by means of expert judgment using this approach, specialist in
the subject matter of the survey choose what we believe to be the best sample for
particular study. This approach is not suitable for the large sample size. Despite this
limitation, this method may be useful when the total sample size is small.
Collection of Secondary Data
Secondary data means data that are already available i.e., they refer the data
which have already been collected and analyzed by someone else. When the researcher
utilizes secondary data, then he has to look into various sources from where he can obtain
them, IN this case he is certainly not confronted with the problems that are usually
associated with the collection of original data. Secondary data may either be published
data or unpublished data. Usually published data are available in:
(a) Various publications of the central, state and local governments;
(b) various publication of foreign government or of international bodies and their
subsidiary organization;
(c) Technical and trade journals:
(c) books, magazines and newspapers;
(d) reports and publications of various associations connected with business and
industry, banks, stock, exchanges etc.;
(e) Reports prepared by research scholars, universities, economists etc. in different
fields, and
(f) Public records and statistics, historical documents, and other sources of published
information.
The sources of unpublished data are many; they may be found in diaries, letters,
unpublished biographies and autobiographies and also may be available with scholars and
research workers, trade associations, labor bureaus and other public/private individuals
and organizations.
COLLECTION OF PRIMARY DATA
QUESTIONNAIRE
The questionnaire is a list of question to be asked from the respondents, It also
contains a suitable space where the answers can be recorded.
"The term questionnaire usually refers a self-administered process where by the
respondent himself reads the question and records his answers without the assistance of
an interviewer." This is a narrow definition of a questionnaire.
A questionnaire is a method of obtaining specific information about a defined
problem so that the data, after analysis and interpretation, results in a better appreciation
of the problem. A questionnaire form, which has to be completed by an interviewer, is
often referred as schedule.
Type of Questionnaire :
a) Structured-non-disguised or direct
b) Structured-disguised or indirect
c) Non-structured-non-disguised
d) Non-structured-disguised
Structured, Non-disguised Questioning :
Most questionnaire studies make in marketing research are of the first type-they are
structured and are not disguised. If the sales manager for a musical instrument company
want to find out how may and what type of people play various types of instruments, a
formal list of questions may be set up that asks directly about the ownership and playing
of various instruments, Each of a selected group of persons is then asked this set of
questions in the given sequence. Answers are frequently limited to list of alternatives
which is stated or implied.
Structured, non-disguised studies can be handled by telephone, mail, or personal
interview. They are subject to the three limitations of the questionnaire method-
respondents may be unable to furnish the information desired, they may be unwilling to
furnish it, or the questioning process may tend to stimulate incorrect or misleading
answers.
INTERVIEWING
Personal or face-to-face interviewing is a core function of marketing research; much
of the quality of the entire research process rests on its effectiveness. Despite the growth
in popularity of telephone and mail surveys, personal interviewing retains its long-held
dominance across a wide spectrum of surveys - markets, social, political.
A personal interview is face to face communication with the respondent. the
interviewer gets in touch responsibility to records the answers obtained. It is the
interviewer's responsibility to record the answers either during the interview or after the
interview. The interview may be conducted at any place, but it is appropriate to meet the
respondent at his place of work or at his resident. The main purpose of this consideration
is that the answer must be recorded clearly and correctly. The personal interview may be
either structured or unstructured.
CORPORATE MAPPING :
LUCKNOW being an entirely industrial city had huge potential for the sales of
PEPSI in corporates as these concerns had factories, offices and canteens and the officials
and workers base was very strong. The process of Retail Mapping was followed by the
Corporate Mapping which incorporated of tracing of the organizations and assessing the
market for PEPSI in these areas. Apart from these the database had to be updated to turn
the non potential market in the corporate into profitable liaisons for the increment of sales
volume.
The objectives of Corporate Mapping were:
Trace the organizations with and without canteens and cafeterias and
estimate the market for PEPSI.
Estimate the brand preference of PEPSI and COKE in the corporates and the
reasons thereof.
To review the product performance and satisfaction along with the
expectations of the customers in corporates including PEPSI Dispenser
Equipments.
To assess the product availability and demand of the product (Traffic) in these
organizations as well as when the product has the optimum consumption eg.
Daily, delegations, meetings, parties, or other occasions and the customers
i.e., whether the officials or workers or both.
To ensure efficient supply and record any complaints or grievances thereof.
To assess the promotional measures being adopted by Coca Cola for tapping
these markets and locates the weak points in corporates having Coca Cola
counters to convert them into profitable opportunities.
The Corporate Mapping was the supplementary programme in the project to boost
the sales performance of PEPSI in LUCKNOW and capture the market share of its
nearest competitor. The analysis and findings were recorded on the format provide by the
company accompanied by the list of findings and observations in order or their
preference and seriousness along with all the relevant details about the organization. The
matters were discussed and analyzed carefully by the TDM. The corporate matters had to
be given a special care as these had huge potential for the product. The specimen copy of
the Corporate Mapping format is attached for reference. The findings and observations
have been discussed in the coming pages.
ANALYSIS OF FINDINGS ANDOBSERVATIONS :
The main objective of the company is to increase the brand preference and market
share so any information material form this point of view had to be take into account
along with the formats provided by the company for predefined information recording
and analysis of those recordings and present the information in an organize and
systematic manner in a condensed form reflecting the actual position of the market.
The information had to be recorded in the format along with the relevant
information as per the objectives of the research and an analysis of that information had
to be made and present them in an understandable format so that immediate inferences
can be drawn. Generally that information had to be presented in percentages and the other
findings and observations had to be evaluated and a list of findings had to be arranged in
order of their seriousness and areas of serious concern along with the outlet details.
After the analysis sheets and formats have been surrendered to the TDM after
analysis by the trainees it was further analyzed and evaluate by him and a brief analysis
was made each day of the daily report.
FINDINGS AND OBSERVATION
The reports of each phase of the project had to be supplemented by the information,
data, facts and figures and significant findings and observation to support the feasibility of
decisions to be taken on the basis of the Retail mapping Summary or the CDR. The
information so recorded in each phases of the project had to be listed in order of their
relevance and seriousness and presented in a form to facilitate immediate inference.
Some of the important observations have been listed below:
Soft drink business’s 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 LUCKNOW and
some of its brands like Mirinda Orange and Mountain Dew were performing
above standards apart from PEPSI Cola inspite of the Coca Cola with two cola
flavour packs i.e., Coke and Thumps up.
The present distribution system of PEPSI is the best in the entire FMCG industry
in LUCKNOW and 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 by
offering better schemes, discounts, display materials such as VISI’s, racks,
counter, signage, wall paintings and better amount for purchase of shelf space for
display.
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 which
is one of the major grievances apart from the common complains pertaining to
schemes, incentives and display materials.
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 corporate 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.
0%10%20%30%40%50%60%
COLA ORANGE LIME NLEMON
MANGO
PREFERENCE OF FLAVOURS
PREFERENCES COLA ORANGE LIME IN LEMON
MANGO
Percentage 60% 25% 12% 3%
1
Taste andpreference 0
20
40
60
REASON FOR INCREASE IN SALE OF JBD
Taste andpreference
Healthconsciousness
Extra push of GFYproducts
Decrease in priceof soft drinks
Status of Ice Chests in use in %
Status of cooling equipment of Pepsi & Coke in %
0%
10%
20%
30%
40%
50%
Series1 41% 36% 23%
Pepsi Coke Mixed
0%
10%
20%
30%
40%
50%
Series1 49% 13% 38%
Pepsi (P.C.I.)
Coke (C.C.X.)
Own
PREFERENCE AMONG PEPSI AND COKE
COKE45%
PEPSI55%
PREFERENCES COLA PEPSI
VISI PURITY IN %
VISI PURITY YES
VISI PURITY NO
Outlet survey
Name of the outlet. …… Contact person………
1)what is your annual sale this year……c/s(specify JBD …………)
2) What was your annual sale last year…...c/s(specify JBD……….).
3) If there is a decline / increase, in your vis-à-vis last year in juice based drink
section;the reason:
a) more health consciousness among consumers
b) effect of programs of Baba ramdev,etc
c) Price increase in soft drinks .
d) extra push of good for you category products in the market .
e if any other ,plz specify…………………………
4) How often do you purchase juice based drinks ,
a) once a day
b) once in two days
c) once in weeks
e) others…………………
5) Any suggestion to improve the sale of SLICE (PEPSI) in the market.
…………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………
The first two question gives the information about the increase or decrease in the
sale of outlet.
The outcomes are .
Carbonated soft drinks (CSD)
1) The sale of soft drinks has gone up in 10% outlet.
2) The sale of soft drinks remains same in 35% outlet.
3) The sale of soft drinks has gone down in 55% outlet.
Sale of CSD
10%
35%55%
Gone up
Same
Decrease
Juice based drink
1) The sale of JBD has gone down in 10% of outlet.
2) The sale of JBD has remains same in 35% of outlets.
3) The sale of JBD has gone up in 55% of outlets.
Sale of JBD
10%
35%55%
Gone down
Remain same
Increase
(3) If there is a decline / increase,in your vis-à-vis last year in juice based drink
section;the reason:
OUTCOMES:
The reasons for decrease in sale of JBD:
less demanded by the consumer
weather condition
program of Baba Ramdev.
The reasons for increase in sale of JBD :
45% of outlets says that sales increase due to Taste & preference of consumers.
30% of outlets says that sales increase due to health consciousness among the
consumer.
20% of outlets says that sales increase due to
extra push of good for you category product in the market.
5% of outlets says, due to price increase in soft drinks .
1
Taste andpreference 0
20
40
60
REASON FOR INCREASE IN SALE OF JBD
Taste andpreference
Healthconsciousness
Extra push of GFYproducts
Decrease in priceof soft drinks
4) How often do you purchase juice based drinks
The buying pattern of JBD is –
a) once a day
b) once in two days
c) once in weeks
e) others……
outcomes
1) 40% outlet takes once c/s in a day
2) 30% outlet takes once in two days.
3) 20% outlet takes once in a week.
4) 10% others.
Buying pattern of JBD
40%
30%
20%
10% Once in a day
Once in two days
Once in a week
Others
Suggestion to improve the sale of slice
1) One of the most important suggestion that is concluded to
advertisement.
The sale of slice can be improved by –
a) Advertisiment in the television
b) Board, Poster, Stickers ,Banners provided by the company.
2) Display scheme
Recently company has provided the display scheme to the customer. Like space
club, Mountain dew seasonal display which effect the sales very much .So there
must be such a display scheme of slice to improve the sales.
3) Under the crown offer (UTC) to consumer .
UTC offer consist of gifts prizes inside the crown of bottles. This will also effect
the sales very much. As we have already seen such a offer in the case of Thums Up .
4) Production of 200ml and 300ml bottles of slice
5) Introduction of small tetra pack of slice of Rs 3/-
6) Improvement in the packaging of SLICE bottles
7) Replacement of expire bottles.
8) Decrease in the price of slice
Consumer survey
Name of consumer. Age………. Sex…………
Occupation……………..
1) How often do you drink soft drink ( specify JBD )
CSD JBD
A) Once a day
B) Once in two days
C) Once in a week
D) Others
2)Have your consumption of JBD have gone up, remains same, gone down this year
compared to last :
a)gone up……….
Reasons:
1)more health consciousness.
2)programs of Baba RamDev
3)Extra push of GFY products in the market.
4)Any other reasons………………….
……………………………………
3)which pack you consume the most?
a)tetra pack
b)250 ml
c)600 ml
d)1.2 ltr
4) rank the following according to your taste and preference….
SLICE
MAAZA
FROOTI
JUMPIN
OTHER, Specify……………….
Collection of data
The outcomes derived from the data is as :data is collected by taking a sample of 700
consumers. The
The first question is :
1) How often do you drink soft drink ( specify JBD )
CSD JBD
a)Once a day
b) Once in two days
c Once in a week
d) Others
Outcomes
CARBONATED SOFT DRINK
The consumption pattern of consumer of CSD can be analyzed with the help of following
outcome.:
50% of consumer consumes once a day
30% of consumer consumes once in two days
15% of consumer consumes once in week.
5% others.
CONSUMPTION PATTERN OF CSD
50%
30%
15%5%
Once a day
Once in twodays
Once in aweek
Others
Consumption of JBD10% of consumer consume once a day
20% of consumer consumes once in two days
40% of consumer consumes ones in a weak
30% Others
Consumption Pattern of JBD
10%20%
40%
30% Once a day
once in two days
once in a week
ohers
The 2nd question is:
2)Have your consumption of JBD have gone up, remains same, gone down
this year compared to last :
Outcomes
30% increase in the consumption pattern
55% of consumption pattern remains same
15% has gone down.
Position of JBD
30%
55%
15%
increase
same
decrease
The third Question is :
3)Which pack you consume the most:
a)TETRA PACK
b)250 ml
c)600 ml
d)1.2 ltr
SIZE PREFERENCE OF CONSUMER
01020304050
TETRAPACK
250 ML 600 ML 1.2LTR
SIZE OF JBD
% O
F C
ON
SU
ME
R
Series1
The fourth Question is
4)rank the following according to your taste & preference
SLICE
MAAZA
FROOTI
JUMPIN
Other ,specify………..
Outcomes:
The outcomes of Brand Preference of Consumer in JBD shows that :
40% of consumer preferred for SLICE
30% of consumer preferred for MAAZA
10% of consumer preferred for FROOTI
5% of consumer preferred for JUMPIN
SLIC
E
MAA
ZA
FRO
OTI
JUM
PIN
S10
10203040
% OF CONSUME
R
BRAND NAME
BRAND PREFERENCE OF CONSUMER
Series1
RECOMMENDATIONS
The Project Retail Mapping was concerned only with providing the organization with all the necessary information required to strengthen the position of PEPSI in LUCKNOW in the form of reports incorporating all information in an analyzed and summarized form. But some critical and major issues which have been identified on account of extensive analysis required suggestions to be put forward on the basis of the current market scenario. Few suggestions which were put forward to the MDM have been listed below.
There should be uniformity in prices, schemes, and discounts, which are offered to the retailers and should be based on a specific parameter such as sales volume, to avoid dissatisfaction and biasness among the retailers.
Activities of sub dealers and super stockiest should be controlled and checked in order to ensure fair prices and distribution of schemes and incentives to small retailers to avoid discontent among small holdings and outlets.
Every possible step should be taken for the satisfaction of the retailers as they are the most important supplement to the sales promotion measures and nationwide advertising campaigns of the company in context of boosting the sales and enhancement of the brand image of PEPSI.
Strict actions should be taken against the organization producing duplicate PEPSI and sued. Measures should be taken to educate the customer about the existence of duplicate Pepsi.
The operations of the bottling plants of the surrounding territories should be controlled in order to ensure that they do not supply the product in other territories not under their area of operation.
The company should modify its advertising strategy and educate the customers about its age-old existence and enhance its brand image. This will appeal to the target customers of middle and older age groups apart from the younger generation in which PEPSI has a good hold.
CONCLUSION
The business of Soft Drink industry is significantly based upon the impulse buying, so it is very necessary to Merchandise products of PEPSI efficiently and present them in such a manner so that it can motivate the consumer and generate a thirst in consumer to consummate it.
Though, PEPSI has a strong position in LUCKNOW with the support of its efficient distribution network, aggressive marketing efforts and advertisements along with attractive schemes but there still exists potential market in LUCKNOW to be exploited and a suitable Weak Area Programmed or the Strong Area Programmed has to be formulated to improve its market share depending upon the area under consideration.
Soft drink business’s behavior is not governed by brand loyalty so the emphasis is not only on creating the market but also on retaining it. The availability of the right brand and flavor pack, at the right place, at the right time is a key for winning the customer in soft drink business. Keeping these facts in mind it becomes very important to treat the retailers with concern and satisfy them by various measures and so that they are loyal towards PEPSI. Public relation is also critically important in this industry.
According to Our research for this company I found that company's financial position is very strong.
Company has increased its sales in current year than previous year.
This company is a soft drink company so people needs will increase day to day specially in summer season. It is very helpful in keeping cool mind of the people.
Observation of ratio shows that position of company is very good.
This company has been awarded with various awards at National and International level for the best quality and marketing in the world. It shows that reputation of company is very good in the world.
I am concluding by informing that during my visit company staff members was quite helpful and well nature in shaping my way to achieve my objectives. I am full satisfied with this company from all position.
SUGGESTION
Company's financial position is very strong. Company has increased its sales in current year than previous year. I think that my valuable suggestion for the company will give many benefits.
Company has increased its sales price in current year is satisfactory so company needs increase its sale double in each year through changing system of marketing.
o Distribution system of the company is a very long system. Expenses are more incurred on this system. This system should be reduced. If it is possible.
This company is a soft-drink manufacturing company. Their 80% products are seasonally. Therefore, Company needs to produce such product, which is non-seasonal product so that company could increase its high sales, and never come under loss.
Company should also increase or decrease its sales product according to market situation and seasons.
Company should launch new product every year and remove old product. If it is possible.
There is a tough competition in soft drink companies so company should produce some different product in the market for facing the competition.
Soft drink products are very dangerous product; therefore company should keep these products very safely and should conduct a Safety Audit every year.
Free Samples of Product should distribute in School/College/ Hotel and Picnic Spot so that the People have a fell of a Products.
o Documentary on the importance of Pepsi Products should be shown on Cinema Halls.
Proper maintenance and audit of cooling equipment & Ice chest of the Company on be held one’s in a month.
Limitations:
During research certain limitation came in many ways.
Time
o Time was not sufficient to cover the various aspect outlined in the study. Because the area of research was wide and span of time was very short. So it was not possible to go deep in the study. Meticulous and diligent effort has been taken to the main topic in detail.
Money
o Personal survey method is highly expensive method as well as time consuming. Being a student it is not possible to spend much money in research because institution also deprives me from stipend.
Transcription errors
o They also pertinent in doing the research work.
Secrecy
It has to be mentioned in case of official data. So kit is difficult to get relevant data from the office. Pepsi of Bajpur city gave me information what ever they could in approximation.
During survey we found some people (outlets owner & distributor) refused in answering first of all, because they had no interest in such sort of work what
consumed their precious time or some other reason. But after being convinced or motivated by us they ready to give the answer.
ANNEXURE
BIBLIOGRAPHY
Books
Philip Kotlar, Marketing Management ; Analysis Planning & Control; Prentice
Hall, 9th Edition
Saxena Ranjan, Marketing Management; TATA Mcgraw Hill, 4th Edition, 1999.
Dr. R.L. Varshney & Dr. S.L. Gupta, Marketing Management; An Indian
Perspective; Sultan Chand & Sons Education Publishers, New Delhi; 2nbd Ed.
2000.
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WEBSITES
www.pepsiindia.com
www.google.co.in
. WWW.PEPSI.COM
QUESTIONNAIRES
To evaluate the market strength of Pepsi in the given market by the help of each distributor survey in LUCKNOW and near by region-
Q1. Name of distributor:
Name of Outlet :
Address :
Q2. What channel do you prefer?
(a) Grocery ( ) (b) Convenience ( ) (c) Eatery ( )
(d) Leisure ( ) (e) Canteens ( )
Q3. Do you prefer cold drink?
(a) Yes (b) No
Q4. If yes, then which brand do you prefer?
(a) Pepsi (b) Coke (c) Both
Q5. What is the position of cold drink in your shop?
(a) No. of filled stock glass of 200 ml & 300 ml (b) No. of filled stock pet of 500 ml & 1 liter (c) Total No. of glass strength.
Q6. What is the total sale of Pepsi in May?
Q7. Do you have Aquafina?
(a) Yes (b) No
Q8. Which cooling equipment would you have?
(a) Pepsi (b) Coke (c) Own
Q9. You use Ice Chest of which company?
(a) Pepsi (b) Coke (c) Mixed
Q10. Rack in use?
(a) Pepsi (b) Coke (c) Both
Outlet survey
Name of the outlet. Contact person.
1)what is your annual sale this year……c/s(specify JBD …………)
2) What was your annual sale last year…...c/s(specify JBD……….).
3) If there is a decline / increase,in your vis-à-vis last year in juice based drink
section;the reason:
a) more health consciousness among consumers
b) effect of programs of Baba ramdev,etc
c) Price increase in soft drinks .
d) extra push of good for you category products in the market .
e if any other ,plz specify…………………………
4) How often do you purchase juice based drinks ,
a) once a day
b) once in two days
c) once in weeks
e) others…………………
5) Any suggestion to improve the sale of SLICE (PEPSI) in the market.
…………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………
Consumer survey
Name of consumer. Age………. Sex…………
Occupation……………..
2) How often do you drink soft drink ( specify JBD )
CSD JBD
E) Once a day
F) Once in two days
G) Once in a week
H) Others
2)Have your consumption of JBD have gone up, remains same, gone down this
year compared to last :
a)gone up……….
Reasons:
1)more health consciousness.
2)programs of Baba RamDev
3)Extra push of GFY products in the market.
4)Any other reasons………………….
……………………………………
3)which pack you consume the most?
a)tetra pack
b)250 ml
c)600 ml
d)1.2 ltr
.4) rank the following according to your taste and preference….
SLICE
MAAZA
FROOTI
JUMPIN
OTHER, Specify……………….
