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STUDY AND IMPLEMENTATION
OF ACTION PLAN REQUIRED TO INCREASE BUSINESS IN
SLUGGISH MARKET
FOR
PEPSICO INDIA HOLDINGS PVT LTD., BANGALORE
A DISSERTATION
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE
UNIVERSITY
SUBMITTED BYHARSHAL BORGAON
REG. NO.:- 03XQCM6042
UNDER THE GUIDANCE OFPROF. S RAMGOPAL
(FACULTY, M P BIRLA INSTITUTE OF MANAGEMENT, BANGALORE /
INTERNAL GUIDE)
MR. B N SATISH(ASST. MANAGER, PEPSICO INDIA HOLDINGS PVT. LTD., BANGALORE
/ EXTERNAL GUIDE)
M P BIRLA INSTITUTE OF MANAGEMENT, BANGALORE
ASSOCIATE BHARATIYA VIDYA BHAVAN
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DECLARATION
I hereby declare, that this project report titled Study and
implementation of action plan required to increase the business in sluggish
market at PepsiCo India Holdings Pvt. Ltd., Bangalore has been successfully
completed under the guidance of Prof. S Ramgopal, Professor, M P Birla Institute of
Management and Mr. B N Satish, Asst. Manager, PepsiCo India Holdings Pvt. Ltd.,
Bangalore, in partial fulfillment of Masters in Business Administration degree at
Bangalore University.
I further declare that this project report is the result of my own efforts and
that it has not been submitted to any other university for the award of a degree or does
not form the basis of any degree or diploma of other similar title of recognition in any
other university.
Place: Bangalore Harshal Borgaon
Date: 03XQCM6042
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ACKNOWLEDGEMENT
I am extremely grateful to all those who have shared their views,
opinions, ideas and experiences which have significantly improved this Project Report. I
would like to express my sincere thanks to Dr. K V Prabhakar, Professor, M P Birla
Institute of Management, Bangalore for his guidance and sincere efforts towards
bringing in years of his vast industrial experience into this project.
I would also like to express my sincere thanks to Mr. B N Satish, Asst.
Manager, PepsiCo India Holdings Pvt. Ltd., Bangalore, without whose constant support
and cooperation, this project would have simply remained a mere one.
I would fail in my duty, should I not extend my sincere gratitude towards
Mr. Anuj Chada, Marketing Manager, PepsiCo India Holdings Pvt. Ltd., Bangalore, who
showed me the way in the initial stages and critical phases throughout the project.
Last but not the least, I would like to extend my warm regards to my
family, friends and well wishers for their tremendous backing and valuable suggestions.
Harshal Bor gaon
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CONTENTS
CHAPTER I
EXECUTIVE SUMMARY 1
CHAPTER II
PROFILE OF THE COMPANY 4
Product Profile 9
Organizational Structure 10
CHAPTER III
RESEARCH DESIGN
Statement of the Problem 24
Objective of the Study 24
Scope of the Study 25
Operational definition of Concepts. 26
Sampling design 34
Methodology 35
Data Collection Tools 36
Limitation of the Study. 38
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CHAPTER IV
DATA ANALYSIS &INFERENCE
Retailers Data 39
CHAPTER V
CONCLUSIONS AND RECOMMENDATIONS
Major Findings 50
Recommendations 51
Conclusions 53
ANNEXURE
Select Bibliography
Questionnaire
Direction for further research
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LIST OF TABLES
PG
NO.TABLES
PAGE
NOS.
1 Tables Showing The Analysis Of 3 Territories
Class A 40
Class B 40
Class C 40
2 Tables Showing The Frequency Of Purchase Of Class A
Accounts In 3 Territories
42
3 Tables Showing The Frequency Of Purchase Of Class B
Accounts In 3 Territories
43
4 Tables Showing The Frequency Of Purchase Of Class C
Accounts In 3 Territories
44
5 Tables Showing The Retailers Would Like To Sell Only
Non-Aerated Soft Drinks
45
6 Table Showing The Most Popular Brands
Class A 46
Class B 46
Class C 46
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7 Table Showing Pepsi Visi Cooler
Class A 47
Class B 47
Class C 47
8 Table Showing The Important Reasons For Retailers To
Stock A Particular Brand
Class A 48
Class B 48
Class C 48
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LIST OF GRAPHS
PG
NO.TABLES
PAGE
NOS.
1 Graphs Showing The Analysis Of 3 Territories
Class A 40
Class B 40
Class C 40
2 Graphs Showing The Frequency Of Purchase Of Class A
Accounts In 3 Territories
42
3 Graphs Showing The Frequency Of Purchase Of Class B
Accounts In 3 Territories
43
4 Graphs Showing The Frequency Of Purchase Of Class C
Accounts In 3 Territories
44
5 Graphs Showing The Retailers Would Like To Sell Only
Non-Aerated Soft Drinks
45
6 Graphs Showing The Most Popular Brands
Class A 46
Class B 46
Class C 46
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7 Graphs Showing Pepsi Visi Cooler
Class A 47
Class B 47
Class C 47
8 Graphs Showing The Important Reasons For Retailers To
Stock A Particular Brand
Class A 48
Class B 48
Class C 48
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EXECUTIVE SUMMARY
The enigma of Marketing is that it is one of Mans oldest activities and yet
regarded as the most recent of the business disciplines
-Michael J. Baker.
Hadh Se Badi hai yeh pyaas
Sabse badi hai yeh pyaas
-Pepsi
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EXECUTIVE SUMMARY
War War War is it a battlefield? No, its a cool and cola war. Yes,
90s have seen a cold war with the entrants of Pepsi and coca cola, the two leading
soft drinks marketing companies that have their presence all over the world.
A century ago, the world would have never expected that the syrup
that cured the stomach disorders would quench the thirst of millions of people in
the form of aerated beverages. The soft drinks, which we normally consume in our
day-to-day life, were initially developed, as syrup for cure of stomach disorder
problems. The syrup was inadvertently mixed with carbonated water rather than
plain water. The syrup was later known as cola.
It is a defining moment in the worlds most ruthless corporate war,
yes they both sell sugar water, but PepsiCo and coca cola never were as similar as
most people believed. In recent years they have veered in completely oppositedirections while PepsiCo diversified increasingly into restaurants and snacks, coke
focused on soft drinks.
The Indian soft drinks market became a hot battle field when in 1993
coca cola came once again to India through venture with Parle and acquired Parle
brands which gave it access to the latter 53 odd bottling franchiser and
competition grew with Pepsi holding its strong grip in Indian soft drink market.
Perhaps nothing matters with the cola war, as far as the companies are providing
the Indian consumers the taste for their price and the market becoming more
competitive.
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The project titled study and implementation of action plan required to
increase the business in sluggish market is done to identify the market potential
and market share of Pepsi in these areas.
Dealers still rate Pepsi as the best brand available in the market but
60% of the dealers are not happy with the promotion activities of the company.
60% of the dealers are ready to invest more money during the promotion activities
of the company. 70% of the dealers have informed to the researchers that Pepsi
schemes are not conveyed to them on time.
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PROFILE OF THE COMPANY
Good guesses, Hunches, or Gut Calls do not spring from nowhere. They are
grounded in the information available and are formulated on the basis of how that
information is assessed
-Walker & Smith.
Yeh Dil Maange More!
-Pepsi
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INDIAN OPERATIONS
Pepsi began its efforts to enter the Indian market in the mid-1980s,
but was able to make an entry into the Indian cola market only in 1990. In early
1985, a proposal with the RPG group was rejected by the then government. This
involved the export of fruit juice concentrates from Punjab in return for the import
of cola concentrates. After more than five years of legal battles, Pepsi was finally
launched in India in June 1990.
The project was promoted by PepsiCo, Punjab Agro Industries
Corporation (PAIC) and Voltas. Later on July 21, 1993, Pepsi bought out Voltas'
entire stake of Rs 35.5 crore in Pepsi Foods for Rs 49 crore. This meant that Pepsi
now controlled as much as 92 per cent of the Rs.105 crore equity. Pepsi India is
engaged in seven areas of operation beverage manufacturing, bottling, backward
integration for vegetables and fruits, up gradation of food processing, exports and
export-led activities. Pepsi had a very significant first mover advantage in the
Indian market and quickly gained market share in the two years that precededCoca-Colas reentry into India. Currently, Pepsi India has a turnover of Rs. 2600
crore (Exhibit 2). It has a current annual growth rate (CAGR)of 29% .
The Pepsi cola international has three companies in India namely
Pepsi foods
PepsiCo India holdings
Pepsi cola India marketing company
The Pepsi food company sells the concentrate to the PepsiCo India
holdings where they Manufacture the product and sell the products to the Pepsi
cola marketing company who Finally sell the products through the help of
distribution to the dealers. There are nearly 33 units under which 16 units are
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company owned bottling operations whereas 17 units are franchisee owned
bottling operations.
Inform at ion about sales of pepsi
Total sales of Pepsi in Karnataka are 53 Lakh (approx.) last year.
Total sales of coke in Karnataka is 45 Lakh (approx)
Capacity of Nelemangla plant is 1200 bottles/ minute.
Contribution of sales of Pepsi product in Karnataka.
Kormangala territory - 24 Lakh salesYeshwanthpur territory - 12 Lakh sales
Upcountry territory - 17 Lakh sales
Market share of Pepsi in India is around 56%.
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EXHIBIT 2: PepsiC os Evolut ion in India
Year Milestones
1990 First Pepsi Produced
1991 7up and Mirinda Launched
1993 Slice and Teem Launched
1994 COBOization Starts - 3 in first year
19952 more COBOs ; Pepsi Cola emerges the Market
leader1996 Mirinda emerges Leader in Orange flavor
1998 Mirinda Lemon Launched
1999500 ml / 2 ltr pet bottles in use; Aquafina / diet
Pepsi launched
2000 Launch of 200 ml variants
2001 Mirinda Apple Launched
2002 Tropicana launched
2003 Mountain Dew launched
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EXHIBIT 3
Current annual growth rate (CAGR) = 29%
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PRODUCT PROFILE
Whats in Pepsi?
Pepsi (8 fl. Oz)
Contains: carbonated water, high
fructose corn syrup and / or sugar,
caramel color, phosphoric acid, caffeine,
citric acid and natural flavors
Calories 100
Total fat (g) 0
Sodium (mg) 25
Potassium (mg) 10
Total carbohydrates (g) 27
Sugars (g) 27
Protein (g) 0
Caffeine (mg) 25
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ORGANIZATION STRUCTURE
2.4.1 Regional Divisions
South Asian Business Unit
India
NorthMarketing
Unit
EastMarketing
Unit
SouthMarketing Unit
WestMarketing
Unit
Central
MarketingUnit
MaduraiBangaloreChennai
Up CountryYeshwantpurKormangala
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2.4.2 Bangalore Unit
Bangalore Unit
Up CountryYeshwantpurKormangala
Marketing
Manager
Operations
Manager
Finance Manager
Territory Development
Manager
CustomerCoordinator
Account DevelopmentCoordinator
CustomerExecutive
CustomerExecutive
CustomerExecutive
CustomerExecutive
Distributor Distributor DistributorDistributor
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2.4.3 Flow of Goods
PatialaConcentrate
Plant
Nelemangala
Distributor
Retailer
Consumers
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India has been divided into three market units each acting as an
individual profit center. The regions can be broadly classified as South, west and
north and east combined. There are 5-6 manufacturing plant under one head. This
division is done based on size of each territory and various factors such as
potential sales, number of outlets, area etc.
The company has four main departments, they are
1) Production Department
2) Marketing Department
3) Personnel Department
4) Financial Department
PRODUCTION DEPARTMENT
Observation:
It was observed that the backbones of any plant for the matter are
following three departments.
a. Maintenance Department
b. Quality Control Department
c. Production Department
In absence of any of the above these are huge production losses. The
manufacturing plant is run by a plant manager, who is responsible for the entire
functioning of the plant. In this endeavor he is assisted by various other
department and their personnel like the General Manger, Production Manager,
Quality Control Manager, Engineers, Supervisor, shipping Executives and team
members in general. As the plant is fully automated plant the number of personnel
workers is minimum in around 160 to 175 workers who work in 3 shifts. That
means the plant is operated all 24 hours. Besides these the supporting departments
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are like the personnel and Industrial relation department, which looks after the
interest of the employees. Finance department, which takes care of the financial
department of the plant. During my 2 days visit to the plant, I have concentrated
on below mentioned 3 main department i.e., Maintenance, Quality Control and
Production department. The following are the observations department wise:
a) Maintenance department:
This is a very important department because is basically looks into
the smooth functioning of the Plant. All the 24 hours in the plant, the department
sees to it that the Boilers, the Refrigeration plant, Air Compression and Diesel
Generator are functioning smoothly. It has to work hard in glove with the other
two departments.
b) Quality Control Department:
Being a beverage plant and the product having only 3 months shelf
time the quality of the product has to be 100%. And water being the main content
of the product it has to be free from all the microorganisms. To take care of this
they use various types of filters, boilers and various water purifying agents like
chlorine etc. There is a full-fledged quality control Laboratory to check the
process. It was observed that if the quality of the product is lost at any point of
time the entire batch has to be discarded. This again leads to heavy losses in
production.
c) Production Department: This department gives the end result to the product only if the above-
mentioned departments have carried out their jobs properly. This is the department
where the actual filling of the bottles is been observed which is followed by
labeling, packing and filling into creates. As the product is filled in various
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capacity of bottles and pets. Care is taken where exact quantity of beverage is
filled in, the capping, the labeling is done properly. The actual process and the
procedure followed in the plant are as follows:
The shipping department first checks the total crates available and sorts the
bottles. It removes the broken or unwanted pieces and the crates are filled with the
empty bottles and sent to the production department.
The bottles are bought with the help of the forklift to the production
department where some members recheck for any foreign particles available, this
inspection is known as Deep Pallet. Later the loading of bottles takes place for
washing under different temperature of 70C, 75C and 80C and final touch with
clean and cold water.
The water is available from the bore-wells, as well as from the
tankers, the water is divided into two categories
Treated Water
Software
The treated water is used for making beverages where as the
software is used generating steam and bottle washing. The Quality control
department checks for micro organisms in the cold storage, if a free organism then
it is sent to the production to the ratio assigned to different drinks like Pepsi has
1:5 ratio where as 7 UP was 1:4 where 1 is the syrup and 5 or 4 is the water. These
diluted liquid is filled in the bottles.
At various stages random micro biological sampling is done to check
for micro organisms. The bottles are selected with the caps on which the rates are
written. Few members check whether all the bottles are having the same measure
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of liquid contents, whether the sealing is done properly or if there is any leakages
make final inspection.
The shipping department keeps a note of the total bottles available
and the total bottles dispatched, which later are sent to the warehouse and finally
to the dealers.
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BOTTLE WASHING PROCESS
BottlesEntry
PRE-RINSE WASHVol: 1200 litersTemp: 45deg
No detergent used
SOAK 1Vol: 6800 litersTemp: 50-55deg
1.5-2.5% caustic
PRE WASHVol: 6800 liters
Temp: 60-65deg2-2.5% caustic
MAIN SOAKVol: 23500 litersTemp: 70-75deg
3.5% caustic
HYDRO WASH
Temp: 50-55deg
No detergent used
PRE-FINAL WASH
Temp: 40deg
No detergent used
FINAL WASH
With ambient
temperature
Bottles ent
into fille
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MARKETING DEPARTMENT
The major types of Pepsi produced and marketed by Pepsi-Cola
India Marketing Company are as follows:
i. Pepsi
ii. 7 UP
iii. Slice
iv. Mirinda Orange
v. Mirinda Lemon
vi. Soda
vii. Pepsi Diet
viii. Mirinda Diet
ix. Aqua Fina (Mineral Water)
x. Mountain Dew
xi. Pepsi Blue
Marketing Pattern:
Once the Pepsi and the other related products have been produced
they undergo the finishing process i.e., to check the total bottles being dispatched
and the stock remaining. The shipping department in the manufacturing plant does
this work. Later the goods are sent to the warehouse or the Pepsi-Cola India
Marketing Company. The goods are distributed according to the orders given by
the dealers. The distribution pattern assigned to the route agents who are given a
fixed sale target for a day. They are assigned few areas where they cover up the
distribution of the whole range of products. The warehouses in the Pepsi-Cola
India Marketing hold more sock incase of excess demand. The promotion of the
product is done through different means. They are done during events like Rock
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Shows, Dhandia, etc. Conducting contest like Toss ka Boss or Sales force
contest does local trade promotion. The company provides free boards, banners
and hoardings leaflets to its dealers, which help in promoting the product. Any
new product, which is going to be launched, is done with a preplan where every
division conducts a meeting with the team members. The company even holds a
key account, which means the company itself organizes and sponsors shows in
places like resorts, clubs or any star hotels. The main Headquarters in Delhi takes
Magazine and Theatre, and the same in followed up further by the regional offices.
Major competitors of Pepsi-Cola India are:
The Coco-Cola, which produces different product, like Coco-Cola, Thumps
Up, Sprite, Mazza, Kinley Soda and Fanta.
PERSONNEL DEPARTMENT
Personnel Department of any organization mainly depends upon the
development of personnel in the Organization. Separate Department has been set
up in the Organization personnel or lately as Human Resource Development
Department. Pepsi has an excellent track record in Human Resource Management
and Development, since employees are the backbone of the organization, it has
development many programs and polices for its department in order to improve
employees morale as well as to achieve organizations over all objectives as a
whole.
Motivational training and welfare are accorded top priority in developing Human
resources. Employees are trained in Multi skills to upgrade their potential to
achieve targets. Investment in manufacturing facilities has been accompanied by
development of safe work practices. Facilities for healthcare, canteen, education,
and sports have been provided to increase motivational and performance.
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Objectives of Personnel Department:
i. Growth and satisfaction of the employees of the organ.
ii. Maintain an organizational climate conductive to human growth,
satisfaction and contribution.
iii. Create necessary environment for teamwork, energy and involvement of
all personnel for presenting the companys objectives.
Recruitment and Selection Procedure:
Pepsi follows a systemic procedure for the recruitment of their
personnel. They are two types PCI (PepsiCo India) and non-PCI. The company
maintains different grades of employees.
Training:
One of the key elements of HRD plan of the company is a
comprehensive training programme. Once the selection completed the employees
undergo a series of training programmes. This type of training is termed as, on the
job training measures:
Pepsi has various welfare measures for its employees:
i. Employing local men for skilled and unskilled jobs.
ii. Providing medical facility / camps and hospitals.
iii. Attendance Bonus.
iv. Incentive paid for reach the targets assigned.
v. Particularly for women they have started tailoring camps where they are
trained to sew and be as independent as possible.vi. The effluent water treatment plant where the water after treatment is
released for agricultural.
vii. Also through various sponsorship programmes they give chance to
upcoming talent and donate money for good cause like the Kargil Fund.
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e. General administrative expenses like traveling expenses and staff
Welfare expenses.
f. Insurance
g. Fleet cost like fuel cost, repairs and maintenance and depreciation.
h. Marketing equipment managing like repair and maintenance and
depreciation.
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RESEARCH DESIGN
The idea that you can merchandise for candidates for high office, like Break fast,
cereal, is the ultimate indignity of the Democratic process.
- Adlai Stevenson.
Life is Short.Live it up
- 7up
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Statement of the problem:-
Study and Implementation of action plan required to increase the business
in sluggish market (D J Halli).
Objective of the study:-
a) To know demand and supply of Pepsi in D.J. Halli area.
b) To list down the entire retailer name, address, phone no and to
know about their purchasing pattern.
c) To know consumer usage pattern, population, size, different subroute and different action required like what are problems of
retailer.
d) To make the availability of Pepsi product to retailer and compare
sales of our product from competitors.
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Scope of the study:-
Many Companies conduct market research to take some strategic
decisions like to Measure market potential characteristics of their markets and so
on Enhance credibility and reduce risk and there by making better profits.
The study under taken is very helpful and beneficial from PepsiCo
point of view because it helps in understanding customer preferences and attitudes
and there by helping in implement effective combo packages in restaurants. Also it
helps the company to know the feasibility and effectiveness of the project, and
would be a reference for similar kind of projects. All the above objective of this
research study provides a wide scope of benefit for the company.
This study is also beneficial to students and other organizations that
takes soft drink industry as a research study and also could be used for secondary
data or for reference.
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Operational definition of Concepts: -
1. Action:-
We collected retailer shop name, phone no and address. We
promoted Pepsi product. We asked the reasons why they do not have stocks of
Pepsi. According to them there was no supply, so our company opened a
distributor and gave different schemes on Pepsi. For selection of distributor we
listed out around 8 big retailers and at last we selected a retailer as a sub
distributor.
2. Observation:- First three days the sales were extremely good that was up to 35 to
40 crates. The next three days the sale was not too much due to climate (rain). We
have observed following sales trend of 10 days.
3. Statistics/ Recommendation:-
Market :Population : around 6000 to 8000
Area :Very small lanes and bylanes movement of 4 wheeler very difficult as the
roads are very narrow
Trade :highly credit oriented, and crates and credit at a high risk.
Market potential;: around 25000 c/s industry.
Mode of operation :one small auto 4 tri cycle.
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Action Plan:-
w Supply to start with 2-3 tricycle, from the sub-distributor.
w Scheme to be given for the general market on 200ml of 1c/s 2 bottle
openers will be given to all the outlets.
w Sub distributors to be given garget and additional cash or kind
incentive.
Here in D.J.Halli, the average sale is around 25 to 30 creates per day.
We can increase the sales by giving more schemes on our product. We should give
Pepsi board and other gifts properly. At last but not the least a trusted and loyal
salesman we should recruit for that area.
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HOW WE HAVE DONE
STEP 1
We collected retailer shop name, phone no and address. We promoted
Pepsi product. We asked the reasons why they do not have stocks of Pepsi..
CRTS VISI STOCK
SL.NO OUTLET NAME Pepsi Coke Pepsi Coke Pepsi Coke
1 Al-Amin store 0 3 - - - 1
2 Zam-L store 0 3 - - - 1
3 SLN store 0 8 - Yes - 8
4 Billal store 0 6 - Yes - 2
5 new modern store 0 4 Yes - - 10
6 Fiza store 0 2 - - - 1
7 Sadiq store 0 15 - Yes - 10
8 S.R store 0 4 - - - 2
9 H.F.S store 0 4 - Yes - 410 IFRA store 0 7 - - - 3
11 Saddiq store 0 4 - Yes - 5
12 Anwar store 0 7 - - - 8
13 National store 0 3 Yes - - 2
14 Dilkush dhaba 0 3 - - - 2
15 New khan store 0 4 - - - 2
16 Hussain store 0 9 - - - 4
17 Shakil store 0 10 - Yes - 2
18 Shakuntala store 0 10 - Yes - 3
19 Majid store 0 5 - - - 2
20 Sakhder store 0 2 - - - 1
21 Afrar store 0 4 - Yes - 2
22 Zehar cool bf 0 4 - - - 2
23 New jyoti Bakery 0 4 - Yes - 5
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CRTS VISI STOCK
SL.NO OUTLET NAME Pepsi Coke Pepsi Coke Pepsi Coke
26 RK store 0 5 Yes - 5 1
27 ZR store 0 3 - - 2 2
28 Kapil store 0 1 Yes Yes 4 4
29 K.G Enterprise 0 6 Yes - 1 1
30 Bashi ahamed store 0 2 - - - 3
31 Bismilla store 0 7 Yes - - 2
32 Farooq store 0 4 - - - 1
33 Aftab store 0 4 - - - 3
34 CNTNM store 0 2 - - - 3
35 Shajahan store 0 5 - Yes - 3
36 S.U.K store 0 4 - - - 2
37 Natoonal store stre 0 2 - - - 2
38 Madeena store 0 2 - - - 2
39 Fathima store 0 6 - Yes - 2
40 Shilpa store 0 3 Yes Yes - 2
41 Shafi store 0 30 - - - 15
42 Fazil store 0 5 - - - 2
43 D.Kamarnam store 0 3 - - - 2
44 N.K Traders 0 4 - - - 2
45 Iqbal store 0 4 - - - 2
46 Roshni store 0 3 - - - 2
47 Damaya store 0 10 - - - 3
48 habib store 0 5 - Yes - 1
49 Imtiaz Bakery 0 6 - - - 1
50 Anees Bakery 0 4 - - - 3
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STEP 2:
In second step we asked the reasons why they do not have stocks of Pepsi.
According to them there was no supply, so our company opened a distributor and
gave different schemes on Pepsi. For selection of distributor we listed out around 8
big retailers and at last we selected a retailer as a sub distributor. After that sales
increased. We have taken survey and found stocks of Pepsi at various retailer.
CRATES
SL.NO OUTLET NAME PEPSI COKE
1 Al-Amin store 2 3
2 Zam-L store 4 2
3 SLN store 1 2
4 Billal store 1 2
5 new modern store 3 1
6 Fiza store 4 2
7 Sadiq store 1 5
8 S.R store 1 3
9 H.F.S store 1 2
10 IFRA store 1 3
11 Saddiq store 2 3
12 Anwar store 2 4
13 National store 1 1
14 Dilkush dhaba 6 7
15 New khan store 6 6
16 Hussain store 3 9
17 Shakil store 2 4
18 Shakuntala store 3 2
19 Majid store 1 2
20 Sakhder store 1 3
21 Afrar store 2 4
22 Zehar cool bf 4 4
23 New jyoti Bakery 4 6
24 Azam store 1 8
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25 Richu Corner 1 2
26 RK store 1 4
27 ZR store 1 3
28 Kapil store 1 3
29 K.G Enterprise 2 4
30 Bashi ahamed store 1 2
31 Bismilla store 1 3
32 Farooq store 2 2
33 Aftab store 1 3
34 CNTNM store 1 3
35 Shajahan store 3 2
36 S.U.K store 2 2
37 Natoonal store stre 1 2
38 Madeena store 2 4
39 Fathima store 2 3
40 Shilpa store 3 3
41 Shafi store 1 1
42 Fazil store 1 2
43 D.Kamarnam store 1 2
44 N.K Traders 2 3
45 Iqbal store 1 1
46 Roshni store 1 2
47 Damaya store 1 3
48 habib store 2 3
49 Imtiaz Bakery 4 4
50 Anees Bakery 4 2
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STEP 3 :
In third step we observed that first three days the sales were
extremely good (up to 35 to 40 crates per day). The next three days the sale was
not too much due to climate (rain).
We have observed following sales trend for 10 days.
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SAMPLING DESIGN: -
1. Sample type & size: -
Sample size 50 (urban area)
Territory included Frazer Town (D J Halli)
2. Sample Type & size: -
Sample size 50 (Both rural & urban area)
Territory included Sunkadakatte.
3. Sample Type & size
Sample size 50 (Urban area)
Territory included Chamaraj pet
4. Field Work: -
The sample size for retailers was 50 in chamarajpet, 50 in
sunkadakatte & 50 in frazer town.
The respondent took 10 15 minutes to fill up the questionnaire.
Each respondent was personally met & explained the purpose of the study
& data was collected from them in a systematic manner.
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METHODOLOGY
1) Survey Method: -
Having decided to adopt a survey method to collect data for this
study, the next step is to decide on the type of survey consistence on resources like
time & money which leads to the sample survey. The survey is classified in to two
parts, viz.,
Exploratory study.
Descriptive study.
Exploratory Study: -
The main objective of exploratory study is to get the feel of the
market, products, competitive consumer. This helps in gathering primary
information used for descriptive study.
Descriptive study: -
The exploratory study laid the foundation for the descriptive study &
paved a way to a systematic study which led to achieve the objectives of the study.
A structured questionnaire was prepared & questions were both
open-ended & close-ended.
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DATA COLLECTION TOOLS
Analysis & interpretation of data is based on both the primary data
& secondary data.
Primary data:
Primary data was collected by means of a structured questionnaires
along with personal interviews, since a few open-ended questions require
classifications. The questionnaire contains dichotomous, objective & open-ended
questions.
Secondar y data:
Secondary data was collected from books, newspapers & magazines.
The secondary data is also collected from usage of computer internet.
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PLAN OF ANALYSIS
First the questionnaires were collected from all the respondents
(consumers & retailers) & tabulation was done on the basis of the primary data
given by the respondents. All the data collected were first segmented into different
categories & tables were formulated using tally bar method into the each variable
explaining the characteristics. The tabulated data were analyzed using percentile
techniques & inferences were drawn based on the marketing concepts.
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LIMITATION OF STUDY
The study is not proposed to be an expert study as it was done by a
student for the purpose of a partial fulfillment of the course in the in plant training,
which is an integral part, in completion and reward of MBA. The Study was
conducted in a short period of six weeks, and so the finding cannot be generalized
for all times. Some of the information's being confidential was not included in the
study. The scope of the study, by and large is very vast. It is difficult to satisfy all
the areas; therefore an attempt is made to cover as much as possible.
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DATA ANALYSIS & INFERENCE
The idea that you can merchandise for candidates for high office, like Break fast,cereal, is the ultimate indignity of the Democratic process.
- Adlai Stevenson.
Life is Short.Live it up
- 7up
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Graphs showing the analysis of three territories
Graph 1a
Graph 1b
Graph 1c
Inference: Graphs illustrate that the number of accounts in each territory being
classified in to A, B and C in which class A refers to one of the high potential
AccountsNo. OfRespondents Percentage
A Class 24 32
B Class 17 22.67
C Class 34 45.33
AccountsNo. OfRespondents Percentage
A Class 17 17
B Class 44 44
C Class 39 39
AccountsNo. OfRespondents Percentage
A Class 34 34
B Class 28 28C Class 38 38
24
17
34
32
22.67
45.33
0
10
20
30
40
50
A Class B Class C Class
No. Of
Respondents
Percentage
17
4439
17
4439
0
10
20
30
40
50
A Clas s B Clas s C Class
Series1
Series2
34
28
3834
28
38
0
10
20
30
40
A Clas s B Clas s C Class
Series1
Series2
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accounts, class B to middle level accounts having mid-size of potentiality in
stocks, class C refers to an account where petty and small business accounts
maintained in which stock is put according to their requirements. The territory
here is divided into Chamarajpet (50), Sunkadakatte (50) and Frazer Town (50).
It is clearly observed that Sunkadakatte territory has the most
number of class A accounts and class B accounts.
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Graphs showing the frequency of purchase of class A
accounts in three territories
Graph 2a (class a)
Graph 2b
Graph 2c
Inference: The graphs show that the class A accounts usually prefer to purchase in
a lesser frequency as compared to the rest of the classes.
FrequencyTwice aweek
Thrice aweek
No. OfRespondents 16 8
Percentage 66.67 33.33
FrequencyTwice aweek
Thrice aweek
No. OfRespondents 11 6
Percentage 64.70 35.30
FrequencyTwice aweek
Thrice aweek
No. OfRespondents 23 11
Percentage 67.64 32.36
168
66.67
33.33
0
20
40
60
80
1 2
No. Of
Respondents
Percentage
116
64.7
35.3
0
10
20
30
40
50
60
70
1 2
No. Of
Respondents
Percentage
23
11
67.64
32.36
0
20
40
60
80
1 2
No. Of
Respondents
Percentage
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Graph 3a( class b)
Graph 3b
Graph 3c
Inference: : The graphs show that even class B accounts also prefer to purchase in
a lesser frequency as compared to class C.
Frequency
Twice a
week
Thrice a
weekNo. OfRespondents 11 6
Percentage 64.70 35.30
FrequencyTwice aweek
Thrice aweek
No. OfRespondents 32 12
Percentage 72.72 27.28
FrequencyTwice aweek
Thrice aweek
No. OfRespondents 20 8
Percentage 71.42 28.58
116
64.7
35.3
0
10
20
30
40
5060
70
1 2
No. Of
Respondents
Percentage
32
12
72.72
27.28
0
20
40
60
80
1 2
No. Of
Respondents
Percentage
20
8
71.42
28.58
0
20
40
60
80
1 2
No. Of
Respondents
Percentage
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Graph 4a( class c)
Graph 4b
Graph 4c
Inference: The graphs show that the class C accounts usually prefer to purchase in
a more frequent manner as compared to the rest of the classes.
FrequencyTwice aweek
Thrice aweek
No. OfRespondents 22 12
Percentage 64.70 35.30
FrequencyTwice aweek
Thrice aweek
No. OfRespondents 30 09
Percentage 76.92 23.08
FrequencyTwice aweek
Thrice aweek
No. OfRespondents 27 11
Percentage 71.05 28.95
116
64.7
35.3
0
10
20
30
40
5060
70
1 2
No. Of
Respondents
Percentage
30
9
76.92
23.08
0
20
40
60
80100
1 2
No. Of
Respondents
Percentage
27
11
71.05
28.95
0
20
40
60
80
1 2
No. Of
Respondents
Percentage
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Graph 5a
Graph 5b
Graph 5c
Inference: The graphs clearly indicate that none of the accounts would like to sell
only non-aerated soft drinks.
KindNo.OfRespondents Percentage
Aerated 73 73Non-
Aerated 0 0
Both 100 100
KindNo.OfRespondents Percentage
Aerated 86 86Non-
Aerated 0 0
Both 100 100
KindNo.OfRespondents Percentage
Aerated 79 79Non-
Aerated 0 0
Both 100 100
73
0
100
73
0
100
0
20
40
60
80
100
120
Aerate d Non-
Aerated
Both
Series1
Series2
86
0
10086
0
100
0
20
40
60
80
100
120
Aerate d Non-
Aerated
Both
Series1
Series2
79
0
100
79
0
100
0
20
40
60
80
100
120
Aerate d Non-
Aerated
Both
Series1
Series2
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Graph 6a
65
93
53
20 2650 39
72
16
4033
0
20
4060
80
100
Pepsi
Coca
-Cola
Thum
s-Up
Citra
Maaza
7Up
MountainDe
wSp
riteSlice
Fanta
Mirinda
Series1
Graph 6b
Percentage
91
64
43
20 26
50 4 8 4258
23
46
0
2040
6080
100
Pepsi
Coca
-Cola
Thum
s-Up C
itra
Maa
za 7Up
Mounta
inDe
Sprite
Slice
Fanta
Mirind
a
Graph 6c
61
93
66
20 2643
26
72
1640 33
020406080
100
Pepsi
Coca
-Cola
Thum
s-Up
Citra
Maaza
7Up
Mountain
Dew
Sprite
Slice
Fanta
Mirin
da
Brand
Percentage
Inference: The graphs show that Pepsi is the most popular brand
to be stocked by the Sunkadakatte territory retailers followed by Chamarajpet and
Frazer Town respectively.
Brand Percentage
Pepsi 65
Coca-Cola 93
Thums-Up 53Citra 20
Maaza 26
7Up 50
MountainDew 39
Sprite 72
Slice 16
Fanta 40
Mirinda 33
Brand Percentage
Pepsi 91
Coca-Cola 64
Thums-Up 43
Citra 20
Maaza 26
7Up 50MountainDew 48
Sprite 42
Slice 58
Fanta 23
Mirinda 46
Brand Percentage
Pepsi 61
Coca-Cola 93
Thums-Up 66
Citra 20
Maaza 26
7Up 43MountainDew 26
Sprite 72Slice 16
Fanta 40
Mirinda 33
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Graph 7a
Graph 7b
No. Of Respondents
56
2420
0
10
20
30
40
50
60
Pepsi Coca-Cola Own
No. Of
Respondents
Graph 7c
16
34
25
0
10
20
30
40
Pepsi Coca-Cola Own
Type
No.
Ofrespondents
No. Of
Respondents
Inference: The graphs show Pepsis Visi cooler in Sunkadakatte territory has more
percentage compared to the other territories.
CoolerNo. OfRespondents
Pepsi 28Coca-Cola 44
Own 28
CoolerNo. OfRespondents
Pepsi 56
Coca-Cola 24
Own 20
CoolerNo. OfRespondents
Pepsi 16Coca-Cola 34
Own 25
28
44
28
0
10
20
30
40
50
Peps i Coca-Cola Own
Series1
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Graph 8a
Graph 8b
34
67 78
20
020406080
100
Consumers
Demand
Discounts/Sc
hemes
Contractwith
thecompany
Lifeofthe
product
Graph 8c
Inference: It is clearly understood from the graphs that the most important reason
for the retailers to stock a particular brand is the Contract with the Company
followed by Discounts and Schemes provided by the respective companies.
Reasons No. OfRespondents
Consumers Demand 67
Discounts/Schemes 34Contract with thecompany 78
Life of the product 20
ReasonsNo. OfRespondents
Consumers Demand 34
Discounts/Schemes 67
Contract with thecompany 78
Life of the product 20
ReasonsNo. OfRespond
Consumers Demand
Discounts/Schemes
Contract with thecompany
Life of the product
67
34
78
20
020
406080
100
Consumers
Demand
Discounts/S
chemes
Contractwith
thecompany
Lifeofthe
product
Series1
31
72 65
20
020
4060
80
Consumers
Demand
Discounts/S
chemes
Contractwith
thecompany
Lifeofthe
product
Series1
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CONCLUSION AND RECOMMENDATIONS
Weakness comes from having to prepare against possible Attacks.Strength,
from compelling our adversary to make these Preparations against us.
-Sun Tzu
Yeh hi hai right choice baby! Aha
- Pepsi
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MAJOR FINDINGS
The study reveals about the promotional activity of PepsiCo, inBangalore rural and urban. There are two major companies of soft drinks industry
namely
o PEPSI
o COCA-COLA
There is a major fight between the two for the market share and each
will come out with different promotional strategies to lead the market. The
company services are excellent according to the accounts. It was found that
salesmen play a major role in the distribution and promotion of the product for
each of the company. It was also found that more than eighty percent of the outlets
sell soft drinks that include both Pepsi and Coca-Cola. The Pepsi companys Visi
cooler is having more percentage in Sunkadakatte while Coke enjoys more
percentage of its Visi cooler in Chamrajpet and Frazer Town. The retailers are
much interested about the company schemes rather than brand. The consumers
prefer their brand to be available at their arms length. So the company should aim
at reaching the consumers.
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RECOMMENDATIONS
1. Each sales man should be provided with cell phone for direct contacting
with T.D.M. & A.D.C.
2. A good relationship / family relation should be maintained by salesman
from retailers.
3. Customer executive should talk to retailer person at least one time in
month.
4. Opener, poster, icebox, gifts and many schemes should be provided for
small shop & retailers.
5. Each salesman should have complaint register. Each retailers problem
should be noted down and it should be rectified within 15 days.
6. Company can evaluate sales person by knowing no. of days worked by
him.
7. Company can fix sales quota and classify retailer into A, B and C class.
A class can be categorized into coke monopoly B class can be categorizedinto Pepsi monopoly and C class can be classified into both (Pepsi &
coke) customers. So we should identify customer who buys our product
and thus we can give better satisfaction.
8. Some of the respondents are ready to change their brands in case of non
availability of their favorite brand. Hence it should be ensured by the
respective brand managers that the availability of soft drinks in as many
outlets as possible. If not there may be a switch in the brand preference.
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9. The company should concentrate on giving incentives and gifts to
retailers to boost sales on regular basis.
10. The company should concentrate on effective advertisement to make the
product fast moving in the market, which would intern help, the retailer to
sell the products.
11. The company should provide sufficient advertising material to the
retailers to display Pepsi is available & thus generate business.
12. The company people like territory development manager & customer
coordinators should make a visit to the outlets at least once in a month to
handle the queries especially in rural areas.
13. The company should inform the retailers on time regarding all the
schemes in advance so that they can benefit them.
14. Most of the consumers of the soft drinks are students. Hence sponsoring
educational events will be a good promotional measure.
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CONCLUSION
The main aim of this study was to find out the most selling brand ofsoft drinks, also to know the reasons from the retailers, why they prefer to sell
particular brand of soft drinks.
From the consumers point of view almost all the respondents are
aware of the different brands of soft drinks available in the market. Pepsi has been
the most consumed brand of soft drink followed by Coca-Cola and Thums Up.
The reasons for consuming the soft drinks are taste, thirst quenching and
satisfaction attribute in all the age group. If their favorite brand if soft drink was
not available, the respondents would like to go for an alternative brand, so it is
essential that the brand is available at all point of purchases. The market share of
Pepsi was high in Sunkadakatte as compared to Chamrajpet and Frazer Town.
The retail outlets prefer to sell both the brands of soft drinks Pepsi
and Coke. The company services are excellent according to the accounts (outlets)
and we can conclude that there is need to carry on this through to keep the clients
together and delight them there by creating an everlasting relationship. It was
really a good experience under corporate exposure and I came to know the sort of
business trend and how the distributor works in marketing the product,
merchandising, monitoring the schemes.
The companys path to becoming the market leader in the soft drinks
industry lies in leveraging its flexibility to launch new products. The company is
moving in the direct direction by diversifying its business, especially into the
traditional foods sector. There is an urgent need for improving public confidence
following the recent pesticide controversy. The company can do this through
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succinct advertising stating clearly about the quality levels conformed to. The rural
market that contributes a small percentage of the companys sales at present has to
be exploited especially in light of the growth in income levels due to the
tremendous growth that the Indian economy has been enjoying.
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ANNEXURE
Select Bibliography including the Web sites used
w www.pepsi.com
w www.pepsicenter.com
w www.pepsico.com
w Marketing Management, Philip Kotler Millennium Edition.
w Research Methodology, Cooper and Schindler
w Marketing Team in PepsiCo India Holdings Pvt. Ltd., Bangalore
http://www.pepsi.com/http://www.pepsicenter.com/http://www.pepsico.com/http://www.pepsico.com/http://www.pepsicenter.com/http://www.pepsi.com/8/12/2019 Harshal Borgaon-0315-Plan for Increase Business in Sluggish Mkt.
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Questionnaire for Retailers:
1] Name of the Outlet:
__________________________
2] Address: ___________________________
___________________________
3] Type of Outlet:
a) Bakery f) Restaurant
b) Condiments Shop g) College / Office Canteenc) General Stores h) Parlour
d) Super Market i) Theatre
e) Pub / Bar j) Others, specify
4] Do you stock soft drinks?
Yes No
5] If yes, what kind of soft drinks do you stock with?
a) Aerated
b) Non-aerated
c) Both
6] Tick from the following brands of soft drinks, which you stock with?
a)Pepsi d)Citra g)Mountain Dew j)Slice
b)Coca Cola e)Sprite h)Thums up k)Fanta
c)7up f)Maaza i)Mirinda l)Lehar Soda
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7] Do you have cooler to stock the soft drinks?
Yes No
If yes, which one of these
a) Pepsi Cooler
b) Coca Cola Cooler
c) Own Cooler
8] Among the mentioned above brands of soft drinks that you stock which are the
top 5 most moving brands of soft drinks.
__________ __________ __________ __________
__________
9] Specify the reasons from the following for choosing to stock the mentioned
brands of
soft drinks.
a) Consumers demand e) Larger life period of the product
b) Lesser price f) Displays/ paintings/ hoardings ..
c) Contract with the Company g) Others, please specify
d) Discounts / Schemes __________________________
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10] If you do not have the brand of soft drink that the consumer demands then do
you suggest him / her the other brand?
Yes No Sometimes
11] Please specify the packing size of soft drink you stock:
a) 200 ml d) 500 ml
b) 300 ml e) 1 litre
c) 330 ml f) 2 litres.
12] Out of the following, which is the most preferred mode of packing soft drinks?
a) Bottle
b) Tin
c) Tetra pack
d) PET bottles.
13] Do you stock Pepsi brands?
Yes No
14] Average number of crates of soft drink of Pepsi brand sold per week?
Specify ___________.
15] Does the supply of the soft drink is on time?
Yes No
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