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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

INTRODUCTION OF THE PROJECT

I did my project in Lumbini Beverages Pvt .Ltd. Patna. In my project I learned how the distribution activities are running in the market & how it affect sales of the product.

The study is concerned with the distribution of all the products of Pepsi to the retailers and asking them the problem they are facing which has given the true picture of current position of PEPSI.

PROJECT TITLE

“STUDY OF DISTRIBUTION NETWORK”

REASON OF SELECTING THIS PROJECT & COMPANY

The reason for selecting this project is to gain more knowledge in the field of Marketing.

LOCATION

LUMBINI BEVERAGES PRIVATE LIMITED,HAJIPUR, PATNA

DURATION OF THE PROJECT

The duration of the project was of 8 week (i.e. 2 months)

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INTRODUCTION OF THE STUDY

The World economy has undergone a radial transformation in the last two decades. Geographical and cultural distance have shrunk significantly with the improvement in the production, transportation and communication. These advances have permitted companies to widen substantially both their market and their supplier sources. And thus the role of marketing becomes wide.

“Marketing starts with the Human needs & wants”

Apart from basic necessities of air, water,shelter,clothing & sex, every person has strong desire for recreation & entertainment. They have strong preference for particular brand of basic goods & services. Marketing serves as the link between the society’s needs and its pattern of industrial response.

Beverage industry is one of the fast growing industries in India. We can divide beverages into two section i.e. Alcoholic & non-alcoholic. The non- alcoholic drinks are soft drink that can be further classified in cola,lemon,orange and mango segment.

In present scenario, market has become a perfect competition market. Mere survival has become the primary objective of any business organization. Marketing activities are designed to plan, price, promote, and distribute need satisfying products and services to the existing and potential customers. In other words, we can say that marketing is all about delivering goods and services to the society for consumption and satisfaction but only at profit.

As far as the soft drink market is concerned, it is facing the cut throat competition because of the availability of a large number of indirect as well as direct competitors. Single company offers the soft drinks to the market in different taste and flavors. In this industry entire range of flavors are produced by other competitors also. More often than not it becomes impossible to differentiate between the same flavors of two different brands, when served in a plane container. Besides, both corresponding brands have the price range also. All these factors together make the situation complicated.

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HOW I CARRY OUT MY PROJECT ?

In my project I learned how the distribution channel are run in the market and how it affect sale. The study is concerned with physical distribution of various product of Pepsi brand and asking retailer the problem which they are facing that shows the true picture of current position of Pepsi.

There are about 4000 retailer of soft drinks in Patna, so a sample size of 600 was sufficient for the study. I was given certain area to visit where I interviewed the retailers to fill the questionnaire. Primary data was collected through survey method by the help of structured interview and filling schedule design. Whereas secondary data was collected from various website, business magazine, newspaper etc

I visited various outlets and checked which type of displays are present there and according to this place whether this display is suitable or not.

During my Project I found that

COCA COLA distribution is more better than PEPSI Retailers are not satisfied with the services of distributor. In many areas Pepsi is direct distributing its products through various Dipo. Demand of Pepsi is more than COCA COLA. Retailers are satisfied with PEPSI racks and various scheme.

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IMPORTANCE OF STUDY

The training in an organization is very much important for a student who is undergoing with such course. This course is not the answer to all the problems, which arises in the practical field . There is no certain formula for any particular problems, but the aim of this study is to develop the ability of decision making. A right decision at right time itself helps an organization to run smoothly.

This training in an organization gives an idea how decisions are taken tact fully when any problem comes to an executive. So the way of problem solving, right decision making and knowledge of different type of marketing activities gives much importance to the study. Though only in two month it was not possible to understand it so deeply but an overall idea could develop.

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THEORETICAL FRAMEWORK

This chapter mainly focuses on the theoretical aspect of marketing which includes market research, consumer behavior and channel of distribution in relation to PEPSI.

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This chapter enables us to know the current position of Pepsi and gives clear cut information about how this project has been gone through for better understanding of the distribution network of Pepsi.

Introduction

Marketing activities begins and ends with the need of ultimate customers. Here the aim is not to find the right customer for your product but to make the right product for your customers.Marketing tools do not achieve marketing objectives by themselves. There is an intermediate step between the deployment of marketing tools and achievement of marketing objectives. A Marketing network consists of the company and its supporting stakeholders(customers, suppliers, distributors, retailers, ad-agencies and others) the operating principle is simple; build an effective network of relationships with key stakeholders and profit will follow.

A set of marketing tools, the firm uses to pursue its marketing objectives are called marketing mix. These tools can be classified into four groups which are called the 4p’s of marketing.

PRODUCT PRICE PLACE PROMOTION

Soft drink is a FMCG product which has a wide and scattered market. Thus in order to such companies needs to breakdown their marketing activities into sub-parts to effectively meet customer needs.The entire marketing in this case is divided into three parts;

Route marketing Home marketing At work marketing

ROUTE MARKETING

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Outlet coming under this market cater to the needs of those customers who are engaged in shopping, eating out in restaurants, going to and from work, in amusement centre etc. in simpler words this marketing is what we called bazaar.

HOME MARKETING

Outlets coming under this market cater to the needs of those customers who buy softdrink predominantly for home consumption either by glass bottles, pet bottles.The shops targeted under this category are those which are located inside residential complex or are located nearer to the residential areas. These shops predominantly sale pet bottles.

AT WORK MARKETING

Outlets coming under this market cater to the needs of those customers who are working in offices, factories, etc. i.e. the outlets targeted are the canteens mainly.

DISTRIBUTION CHANNEL

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Physical distribution is a process of reaching a product to consumer. It consists of all the activities in the physical transfer of goods from manufacturer to ultimate customer. Distribution are one of the 4’Ps of marketing mix.

Theoretical Aspect;

Main problem of a manufacturer can broadly be divided into two parts. Production and distribution. After production the next problem faced by the producer is that to distribute those goods which are made to satisfy the consumer’s needs. So it must reach to the consumer for whom it is made.

Thus a way through which goods flows from the producer to consumer is called “channel of distribution”.

FACTOR AFFECTING THE CHOICE OF DISTRIBUTION CHANNEL

There are number of channel available for a company to choose, but the company choose only those distribution channel which is less costly and more profitable also which suits the marketing strategy of the company. The channel chosen achieve ideal market exposure and should meet the

DISTRIBUTION CONSUMPTION PRODUCTION

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target consumers need and preferences. In choosing an ideal channel, the producer always has to struggle between what is ideal & what is available need not necessarily be ideal because here are number of factor which limits the choice, generally the lowest cost channel may be considered to be the best it is not always so. The main consideration is selecting the channel must be satisfaction of customers and therefore, sometimes relatively high cost channel may proof profitable.

Various factors affect the choice of channel of distribution may be classified as follows;-

Factor relating to product characteristics-1. Purchase frequency2. Weight & technology of the product3. Selling price of the product4. Standardized product

Market factor or consumer factor-1. Consumer of industrial goods2. Number of purchase3. Geographical distribution of customers4. Size of orders

Companies or enterprise factor-1. Financial resources2. Size of the company3. Product mix4. Attitude of company executive5. Marketing policies

Middle consideration-1. Services provided by the middleman2. Middleman attitude3. Availability of middleman4. Sale volume potential5. Cost of channel usage

Environmental factor-1. Economical condition2. Legal restriction

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3. Social & ethical consideration

Thus the above factors influence the channel decision. The producer must consider these factor before engaging any channel of distribution. It is therefore right to say that the producer is not always free to enjoy complete freedom in selection of channel of distribution.

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COMPANY PROFILE

HISTORY OF PEPSI

HISTORY OF SOFT DRINK IN INDIA

HISTORY OF SOFT DRINK IN BIHAR

ORGANIZATIONAL PROFILE OF LUMBINI BEVERAGE

ORGANIZATIONAL STRUCTURE

PRODUCTION PROCESS

DISTRIBUTION NETWORK

PROCESS OF DISTRIBUTION

SWOT ANALYSIS

HISTORY OF PEPSI

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CALEB BRADHAM a new Bern, N.C. druggist, created Pepsi-Cola in late 1890s.Pepsico was founded in 1965 through the merger of Pepsi-Cola and Frito-Lays. Its CEO is STEVE REINEMUND and in India its CEO is INDRA K. NOOYI.

The company consists of Frito-lay North America. PepsiCo Beverages North America, and PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo’s brand names are more than 100-years old, but the corporation is relatively young.

Pepsi Cola began its product outside the UNITED-STATES and CANADA in the mid1930s, opening in the UNITED KINGDOM in 1936. Operation grew rapidly beginning in the 1950s. Today PepsiCo beverages are available in more than 170 countries and territories. Brands include Aquafina, Gatorade and Tropicana.

In addition to brand marketed in UNITED STATES, PepsiCo international brands include Mirinda, 7-UP and many local brands.

PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-

you items to product choices that contribute to healthier lifestyles.

PEPSICO’S MISSION is “To be the world’s premier consumer product company focused on convenient foods and beverages. Pepsi seek to produce healthy financial rewards to investors as it provides opportunities for growth and enrichment to its employees, business partners and the communities in which it operate. And in everything it do, it strive for honesty, fairness and integrity.”

PepsiCo is a world leader in convenient foods and beverages, with 2008 revenues of more than $35 billion and 157,000 employees.

Pepsi plans are on to add 100,000 outlets every year to its current network of around 600,000 across the country.

Shareholders

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Chicago and Swiss stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

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Corporate Citizenship

At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: “PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic -- creating a better tomorrow than today.”

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

PepsiCo Headquarters

PepsiCo World Headquarters is located in 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, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were designed by the world famous garden planner, Russell Page, and have been extended by François Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.

SUSTAINABLE ADVANTAGE

Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace.

1) Big muscular brands.2) Proven ability to innovate and create differentiate products.3) Powerful go to market system.

GUIDING PRINCIPAL OF PEPSICO;

This is how we carryout our commitment. We must always strive to care for customers, Consumers and the world we live in. We are driven by an intense, competitive spirit in the marketplace, but we direct spirit towards solutions that achieve a win for each of our constituents

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as well as a win for us. Our success depends on a through understanding of our customers, consumers, and communities. Essentially this is a spirit of growing rather than taking.Sell only products we can be proud of . The test of our standards is that we must be able to personally endorse our products without reservation and consume them ourselves, from the purchasing of ingredients to the point where our products reach the consumer’s hands.

Speak with truth and candor. We speak up, telling the whole pictures, not just what is convenient to achieving individual goals. In addition to being clear, honest and accurate, we take responsibility to ensure our communications are understood.

Balance short term and long term. We make decisions that hold both short-term risks and benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable growth.

Win with diversity and inclusion. We leverage a work environment that embraces people with diverse traits and different ways of thinking. This leads to innovation, the ability to identify new market opportunities, all of which help develop new products and drives our ability to sustain our commitments to growth through empowered people.

Respect others and succeed together. The company is built on individual excellence and personal accountability, but no one can achieve our goals by acting alone. We need great people who also have the capability to work together, whether in structured teams or informal collaboration. Mutual success is absolutely dependent on treating everyone who touches the business with respect, inside and outside the company. A spirit of fun, our respect others and the value we put on teamwork make us a company people enjoy being a part of, and this enables us to delivered

world-class performance.

HISTORY OF SOFT DRINK IN INDIA

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With the urbanization and development in the economy of India, the soft drink industries are also flourishing with an increasing pace. The economic policy has been made more flexible, the trade policy, Exim policy and industrial policy has been liberalized.

It is potentially one of the largest consumer market in the world with a population of more than one billion. Soft drink is a typical consumer products purchased by an individual to quench thirst and refreshment. In older days people used to quench their thirst by taking “Water” and “Ganna juice” which is still prevailing in the market. But as the people become more and more sophisticated means of satisfying thirst, which ultimately gave way to the production of modern soft drink.

There are mainly two silent feature of the consumers markets in India. Generally the consumers have low purchasing power and the fact that the urban consumer represents a meager percentage of the total population.

Introduction of soft drink in the name of Coca-cola was first created in 1886 in U.S.A. Dr.John S.Peferton perfected the formula for Coca-cola. The Parle came up by introducing ‘Gold Spot’ in orange flavor. It was really a challenging task for Parle to position its product i.e. Gold Spot in the market against the Coca-cola because people were habituated of using foreign brands. So, first of all it was launched in Bombay and free sampling was done in hotels, restaurants, offices and clubs to make the people aware about the taste and quality because it was quite different from Coca-cola in these two attributes.

After a tedious effort of about twenty yrs. It succeed in establishing its separate identity. It increased its production unit up to 29 which was more than Coca-cola that had only two production unit at that time.

Thus Coca-cola was the first foreign brand introduced in India during 1965 and the first Indian branded soft drink was Gold Spot, which was launched in the later part of 1940’s

During the reign of Janta party in 1978, the Indian Govt. cancelled collaboration with U.S.A. Coca-cola company. So the Coca-cola decided to wind up its operation rather than bowing to Indian government. This very factor accelerated the growth of several Indian companies who had aggressively competing with each other to capture a major share of the Indian soft drinks market. New soft drinks entered into the market among which FROOTI,JUMPIN(Godrej) and Treetop(Lipton) entered in tetra pack package and they started grabbing the market share in absence of the Cola giant.

In 1991, about thirty yrs after the exist of Coca-cola from Indian scene an MNC(multinational company), globally known as P.C.I(Pepsi Cola International)entered the

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Indian market with PFL(Pepsi Foods Ltd.) its president. Christopher found a larger scope for this soft drink in India.

Both PFL and Parle were the two main battlers in the soft drink arena. There was a cut throat competition between them. Now (in1993)Coca-cola has re-entered into the Indian market and has acquired five brands of Parle i.e. Thumsup, Limca, Citra, Mazza and Gold spot. Thus Coca-cola India has become the competitors of PFL and they are fighting each other to gain a clear edge over the other.

The Indian Soft drink market basically offers three flavors i.e. Cola, Orange and Lemon. The Indian soft drink industry is estimated at whooping Rs..2000 crore and growing at an encouraging pace of 16 % per annum.

PEPSI-THE INDIAN EXPERIENCE

Pepsi entered the Indian soft drink market in 1988 and began its production in may 1990 and soon it was giving the local contenders the run for their memory in the soft drinks market. It came out with dazzling marketing innovation that rocket the Cola market live selling the product through functional Pepsi outlets. Its advertisement agency was “Hindustan Thomson Association(HTA).”

Pepsi good is one of the largest and best foreign investment in India. Pepsi has distributed exclusive franchises in India to bottle its products. At present it has 40 bottling lines in the country. Pepsi owns 16 units and the rest are owned by franchises. The two silent features of the consumers market in India, are generally prevailing, low purchasing capacity of consumers and the fact that urban consumers responding about 30% of the total population account for nearly 70% of the consumers expenditure. The government of India has considered the soft drinks industry as non essential. As a result of the excise duty levied by the government on the bottled-soft drink is very high.

The soft drink industries in India has an annual sales exceeding more than Rs. 300 crores and most of the bottling companies have been coursing well. The exit of Coca cola from India has

accelerated the growth of several Indian companies have grown and expanded their activities by placing more and more of their soft drinks in the market and by moving refrigeration by

supplying ICE-BOX and visi-coolers and one fridge to their retailers.

HISTORY OF SOFT DRINK IN BIHAR

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The soft drink market in India is quite wide. The production of soft drink was started on 27 th

march,1967 with the installation of a Coca-cola bottling plant of Jamshedpur under the auspicious guidance of late industrialist Shree Dharam Chand Kamani named as Steel City Beverages Ltd. The company controlled the lion’s share in the soft drink market for nearly 10 yrs. Parle also entered this field in bihar with installation of a bottling unit in collation with Mr. Rajendra Poddar in the name of Orient Beverages Ltd. in Patna industrial state in the year 1973. It (Parle) has also a bottling unit at Jamshedpur named as Jamshedpur Beverages Ltd. In 1977 with the advent of Janta party govt. it created trouble for Coca-cola which led to the withdrawal of its operation from India.

After the withdrawal of Coca-cola from India, Parle monopolized the soft drink market in Bihar and took the lion’s share of the projects from the industry that even after Mc.dowell’s pure drinks and local drinks entered into the market they could not compete with Parle.

Once again with the liberalization of economy in 1991 Pepsi food Ltd. Entered in the Indian market. It started bottling its products in Bihar by Steel City Beverage’s company on 24 th

march, 1991 owned by Kamanis in collaboration with the Birla group which was once the bottling plant of Coca-cola. Though Parle range of product stills captures a large share of Bihar’s soft drink market yet Pepsi range of product is giving a tough competition in all flavors i.e. Cola, Orange and Lemon.

In 1997, another bottling plant was installed at Hazipur industrial Area by PFL named as Lumbini Beverages Pvt. Ltd. to meet the requirement of Pepsi range of products not fulfilled by Steel City Beverage Ltd. due to increased demand of these brands.

At present in Bihar there are four bottling plants, two of them i.e. Jamshedpur Beverages Ltd. and Steel City Beverages Ltd. are located at Jamshedpur, one for Parle and another for Pepsi range of products. In the other two, the Orient Beverages Ltd. for Parle is at Patna and Lumbini Beverages Pvt. Ltd. for Pepsi range of products is located at Hazipur industrial area-Patna

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ORGANISATIONAL PROFILE OF LUMBINI BEVERAGES PVT. LTD.

In the year1995, Lumbini Beverages Pvt. Ltd. was formed into a business company with legal status. The company is situated at industrial area Hazipur, district-Vaishali in the state of Bihar; a state notified category ‘A’ backward area at a distance of about 25 kilometers from Patna, the capital city of Bihar. The steel city beverages Ltd. Situated in Jamshedpur steel city comes next to Pepsi in bottling process. In the year 1995, as park franchisee, Lumbini Beverages Pvt. Ltd. With reference to which the study is being conducted was started. It is a public Ltd. Company with registered office situated at p-214 scheme VIM, Kolkata-700054.

In 1998, the company started its operation by producing only 300 ml. bottle and the other sizes products are also being produced afterwards.

The market of north and central part of Bihar is covered by this company. The products distribution is being carried out through a network of 42 distributors under the guidance of Pepsi foods Ltd.

The Lumbini beverage Ltd. Is situated at an area of 10 acres. Limited beverages capacity of production is 1200 bottles per minute and annual capacity of 98 million bottles (4 million crates.) The present capacity is 1000-1200 bottles per minute.

Lumbini owns its 500 ml, 600ml, 1.5lt and 2lt big bottling plant. It produces 1200 bottles per hour.

At present the company produces PEPSI, 7-UP, MOUNTAIN DEW, MIRINDA, SLICE, LEHAR SODA and AQUAFINA MINERAL WATER. Out of the total production , the share of PEPSI is about 45% and while that of MIRINDA is about 20%, MOUNTAIN DEW is about 20% and the rest (7-UP, AQUAFINA AND SLICE etc.) accounts for about 15%.

Since Lumbini beverages Pvt. Ltd. Is a franchisee of Pepsi Foods Ltd. The technical know how required the chief ingredients for manufacturing the Beverages namely essence will be supplied by PepsiCo. Again since the Lumbini Beverages Pvt. Ltd. Is situated in backward area the Government also provides some incentives available to the units which are as under;

a) Exemption of sales tax on purchase of raw materials within the state.b) Exemption of sales tax on sales of finished goods within the state.c) Many other incentives as applicable to such units feeling under the area declared as most

backward area in the state.

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The company is headed by Director (Ravi khilani) who is direct Accountable to Chairman cum Managing Director (Charan khilani) besides this there is a post of Chief Executive Officer (G.P.Singh) who reports to the Director\Managing Director. There are besides the office and Department in units i.e. sales and marketing, Production Department, Account\Finance Department, Administration and Purchase Department and Shipping Department.

All the Executives are reported by the Salesman then they report to the Assistant Manager who finally reports to the Manager. If required, the manager can also contact directly to these executives. Similar is the case with other Department also; these managers in turn reports to Chief Executive Officer, who reports to Director then to Managing Director. The higher Official may also contact directly to lower level official for any relevant information if needed.

The Board of directors of the Company comprising of Mr. Charan Kumar Khilani, Mr. Sanjay Kumar Khilani, Mr. Manoj Kumar Khilani, Mr. Ravi Khilani and Mr. S.M.Surana takes overall decision related to any problem. Sometimes any major decisions are also being taken up in consultation of different heads by board of directors.

The work force of the company is around 250 among which 70% are permanent which includes managers and higher officers also and the rest are supplied by the local contractors. This work force is headed by Mr. N.K.Prasad(manager-HRD)

The Advertisement for different products is being carried out by the PepsiCo as well as Lumbini Beverages Ltd. The all India level Advertisement is being handled by PepsiCo and the local advertisement is being done through different ad agency namely-Kalptaru, Happy adverts, cosmeric adverts etc.

The total turnover of Lumbini Beverages Pvt. Ltd. Is Rs 45 crores.

Some sales promotion schemes are also there, like 1 bottle free on purchase of each carat, key-rings, T-shirts, Openers, watches & ISI-Cooler etc.

The major equipments of Lumbini beverages Ltd. Consists of filler, Mojonnier, Bottle washer, uncase, Caser, Conveying system, refrigeration system, Water treatment plant, Plastic bottles production and other auxiliaries which are imported from USA. On the other hand, the auxiliary equipments including utility items are being taken from local Indian markets. The local contractors under the supervision of foreign technician led to the set-up of PepsiCo. The maintenance is being done by the company itself through local contractors.

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ORGANISATIONAL STRUCTURE

BOARD OF DIRECTOR

MANAGING DIRECTOR

C.E.O

H.R. MANAGER

FINANCE MANAGER

PLANT MANAGER

ACCOUNT OFFICER

ACCOUNT EXECUTIVE

H.R. ASSISTANT

SHIPPING OFFICER

HOS

TDM MDM

BDM MDC

ADC MEE

C.E. MERCHANDISE

PSR

RE

DIRECTOR

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PRODUCTION PROCESS

WATER TREATMENT PLANT

Water in the Lumbini Beverages is coming from underground. Before ensuring production, this raw water is being treated in the water treatment plant. The process involved is known as coagulation process. Main chemicals used are ferrous sulphate (Feso4), calcium Hydroxide (CaOH), & Chlorine (CL).Initially water is treated with all these chemicals in the treatment tank and becomes turbid. All impurities get settled at base and remove the turmidity. Then it sent to the carbon tank where all the micro-organisms and chlorine’s are removed. The water so obtained is completely free from any kind of impurities and can be used for further processing. The maximum alkalinity maintained until as much as 50 ppm.

BOTTLE WASHING PLANT

Used bottles returning from the market are stealthy. It is completely an auto process which takes place within a machine called washer machine. The machine has three compartments. Bottles for washing are places on the conveyer come inside the machine and get successive treatment. Bottles are treated with 4% caustic soda in the first compartmental a temperature 100-150F. Next these were conveyed to the second compartmental, where bottles are again treated with2% caustic soda at temperature of 120F, in the third compartment bottles are treated with soft water. Time duration in each compartment is 10 min. Bottles are then sent through the inspection center, where are watched against strong light.

SYRUP ROOM

Here syrup is prepared from filtered water, sugar and the concentration. The room is well equipped with several tanks and filter press. The first one is “Heating Tank” in which syrup is actually prepared. Calculated amount of syrup along with concentrate and water are being heated up to85 degree C. Thus a saturated solution is being prepared. Next it is sent through a machine called Filter press syrup is filtered here.

Filtered syrup is next passed through a Para flow cooler, when by recycling glycol methods, the temperature of syrup is cooled down to 20-25 degree C cooled syrup is then stored in the syrup tank. Syrup comes to the Traumatic machine. Here syrup is mixed with carbonated water under pressure in definite proportion. Inspected bottles gradually come under the “Filtration machine” carbonated syrup by this time fills the filler machine. From this machine, syrup is poured into the

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bottles in calculated amount. The exact rate of filling is 620 bottles per minute. Meanwhile crowner machine helps in closing the mouth with helps of the caps completely air tight.

Ready bottles are again sent through an inspection center for through examination on conveyer. Next they were carried on a round table they are collected.

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Our Distribution Network & Our competition

Our products are brought to market through direct-store-delivery (DSD),broker-warehouse and foodservice and vending distribution networks. The distribution system used depends on customer needs, product characteristics and local trade practices.

Direct-Store-Delivery.

We, our bottlers and our distributors operate DSD systems that deliver snacks and beverages directly to retail stores where the products are merchandised by our employees or our bottlers. DSD enables us to merchandise with maximum visibility and appeal. DSD is especially well-suited to products that are restocked often and respond to in-store promotion and merchandising.

Broker-Warehouse

Some of our products are delivered from our manufacturing plants and warehouses to customer warehouses and retail stores.

These less costly systems generally work best for products that are less fragile and perishable, have lower turnover, and are less likely to be impulse purchases.

Foodservice and Vending

Our foodservice and vending sales force distributes snacks, foods and beverages to third-party foodservice and vending distributors and operators. Our foodservice and vending sales force also distributes certain beverages through our bottlers. This distributionsystem supplies our products to schools, businesses, stadiums, restaurants and similar locations.

Our businesses operate in highly competitive markets. We compete against global, regional, local and private label manufacturers on the basis of price, quality, product variety and distribution. In U.S. measured channels, we have a similar share of CSD consumption and a larger share of liquid refreshment beverages consumption, as compared to our chief beverage competitor, The Coca-Cola Company.

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However, The Coca-Cola Company has a significant CSD share advantage in many markets outside the U.S. Further, our snack brands hold significant leadership positions in the snack industry worldwide. Our snack brands face local and regional competitors, as well as national and global snack competitors, and compete on the basis of price, quality, product variety and distribution.

Success in this competitive environment is dependent on effective promotion of existing products and the introduction of new products. We believe that the strength of our brands, innovation and marketing, coupled with the quality of our products and flexibility of our distribution network, allow us to compete effectively.

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DISTRIBUTION CHANNEL OF LUMBINI BEVERAGE PVT. LTD.

To make its product available at the right place, at right time in market, at right price, the sales department of the company plays major attention towards controlling the channel of distribution.

The company right from its beginning stage maintain single type of marketing channel. The nature of channel is as follows;

COMPANY

DISTRIBUTOR RETAILERS

CONSUMERS

At first soft drinks is supplied to distributors directly. Retailers cannot take the delivery directly from the company. They have to take it from their respective or nearest distributors. The distributors selected on the basis of assurance given by them regarding minimum sales, which they have mention annually, the selection is also done on the basis of financial position and reputation of distributing in the market. As for the example, in appointing distributor first priority is given to those who are in cigarette business.

Depending upon the market each distributor, in its initial stage deposit some security money. This amount varies between five thousand and ten thousand. The distributor selects the retailers. There is no relation between the company and its retailers. On the other hand there is no definite and fixed criteria for the selection of the retailers from the side of distributors. One like “ Panwala, cigarette shop” or any other shopkeeper can have the stall for the sale of soft drinks and they are called the retailers or dealers. They have to give assurance to the concerning distributors for better sales and at the time of taking delivery they have to deposit the security that is the change for the empty bottle with specified purchasing price.The distributors at first have to seek the permission of the sales department for the number of cases of soft drinks required by them. After getting the proper authority from the sales

department they take the delivery from the shipping department paying the requisite either in

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cash or as demand draft. Generally there is no compulsion on that part of distributors to provide the transportation facilities to the retailers.

But the distributors of the big cities provide the transportation facilities to their respective retailers. The distributors and the retailer are independent to sell as they want but are controlled to some extent by the company also as they have to give some assurance regarding minimum sales. It happens so because they are given some incentives also. They are fully independent to gear up the market, as they want. The company does the gearing job itself also and some times it advises them to gearing up in a way which is more profitable for all of them.

The distributor can be dropped if they fails to achieve the required target of sales. They can also be dropped when they don’t follow the instruction given by the company or when they charge high price or when they are engaged in black marketing, loading etc.

The supply of soft drinks, to the distributors depends upon the ups and downs in sales. But in the initial stages the distributors have to sell up to a minimum target set by the company or as decided by agreement between the company and the distributors. In the later stages soft drink is supplies as and when demanded by the distributors.

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Process of Distribution

Lumbini beverages Pvt. Ltd. distributes its products in the above mentioned ways. But in Patna City, it has mainly focused on direct store delivery method and distributorship method.

In Patna, Lumbini Beverage Pvt. Ltd. have two warehouse and three distributors from where it distribute its products to the retailers. One of its warehouses is located at Kumhrar Park and the other one is at Patliputra.

As I have done my project from one of its warehouse so my report is mainly concentrated on the distribution of Pepsi products from the warehouse to the retailers.

At first, the products are brought to the warehouse by the trucks and after inspection they are stored there. These products are supplied to the retailers as per their demand raised through the salesman. Each salesman of this warehouse has been given his own particular area in which he has to visit each and every outlet selling soft drinks. These salesmen take orders from the retailers and provide them the products as per their demand. Now these products are brought to the market by the vehicles provided by the company to this warehouse. On each vehicle there is a driver and a loader which helps in the distribution of the Pepsi products from the warehouse to the retailers. These retailers are selected by the C.E. of the company. There is no relation between the company and its retailers. On the other hand there are no definite and fixed criteria for the selection of the retailers from the side of distributors. One like “Panwala, cigarette shop” or any other shopkeeper can have the stall for the sale of soft drinks and they are called the retailers or dealers. They have to give assurance to the concerning C.E. for better sales and at the time of taking delivery they have to deposit the security that is the change for the empty bottle with specified purchasing price. The retailer are independent to sell as they want but are controlled to some extent by the company also as they have to give some assurance regarding minimum sales. It happens so because they are given some incentives also. They are fully independent to gear up the market, as they want. The company does the gearing job itself also and some times it advises them to gearing up in a way which is more profitable for all of them.

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SWOT ANALYSIS

STRENGTH;

PepsiCo is the second largest food and beverage company in the world. It owns 17 mega brands which are known around the world. It has well positioned itself in the mind of the customer. It has a well defined group of consumers. It has a well built market and currently holds almost all parts of the state.

WEAKNESS;

The Visi-cooler has not been distributed as per the demand of retailers. Focus mainly on the big dealer.

OPPORTUNITY;

It should give more incentive to the dealers in the rural areas. More schemes should be launched, especially during off-season. So as to attract more and

more customers. More and more fridge should be provided to the retailers. The consumption rate is higher in Bihar.

THREATES;

Company is spending more on Advertisement, especially in Urban areas, to increase its sales.

Baba Ramdev’s preach cause a huge fall in sales volume. Company is facing a strong competition from the local products. Attitude of the salesman is not appreciable.

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PRODUCT PROFILEPRODUCTS OF LUMBINI BEVERAGE

PRICE LIST OF PRODUCTS

PRODUCTS OF LUMBINI BEVERAGE PVT.LTD.

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Name of product Quantity Color Flavor

Pepsi 200ml Burnt-sugar Cola

Pepsi 300ml Burnt-sugar Cola

Pepsi 600ml Burnt-sugar Cola

Pepsi 2000ml Burnt-sugar Cola

Mirinda 200ml Sunset Orange

Mirinda 300ml Sunset Orange

Mirinda 600ml Sunset Orange

Mirinda 2000ml Sunset Orange

Slice 200ml yellow mango

Slice 250ml Yellow Mango

Slice 300ml Yellow Mango

Slice 500ml Yellow Mango

Slice 1200ml yellow mango

7-UP 200ml Colourless Lime

7-UP 300ml Colourless Lime

7-UP 600ml Colourless Lime

7-UP 2000ml Colourless Lime

Everest Soda 300ml Colourless

Everest Soda 500ml Colourless

Mountain Dew 300ml Colourless lemon

Mountain Dew 600ml Colourless Lemon

Mountain Dew 2000ml Colourless lemon

Price(in may,2009)

Premium Volume MRP Price/case

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Pepsi 200ml 8.00 168.00

Pepsi 300ml 10.00 214.00

Soda 300ml 5.00 108.00

Slice 500ml 22.00 498.00

Slice 1.2 ltr 48.00 532.00

Mountain dew 600ml 20.00 454.00

Soda 600ml 12.00 264.00

Aquafina 1 ltr. 15.00 144.00

Mountain dew 2 ltr. 55.00 459.00

Pepsi 600ml 20.00 454.00

Pepsi 2 ltr. 55.00 459.00

Cane 250ml 15.00 330.00

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RESEARCH METHODOLOGY

INTRODUCTION

OBJECTIVE OF STUDY

COLLECTION OF DATA

METHODOLOGY OF STUDY

ENVIRONMENT SCANNING

TOTAL MARKET ENVIRONMENT

USES OF DEALER SURVEY

LIMITATIONS

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Research Objective

Developing Research Plan

Data Collection

Research Processing &Analyze

Findings

Recommendation

Conclusion

RESEARCH METHODOLOGY

The right combination of a detailed study, observation, cooperation and experiment is called

research. It is systematic generalization and formulation of the theory. The RESEARCH

METHODOLOGY involves the following

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OBJECTIVE OF THE STUDY

The Title of the project is “STUDY OF DISTRIBUTION NETWORK” in PEPSI company.

Objectives:

1. To know the distribution method adopted by the organization.

2. To know how much percent the retailers are satisfied with the distribution of Pepsi products.

3. To know the brand which are more preferred by the customers.

4. To know the percentage share of Pepsi cooling equipment.

5. To know how many outlets are covered with glow sign board of Pepsi.

6. To know the market share of Pepsi products.

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DATA COLLECTION

The methodology used for collecting the data is considered to the primary for any report. The research design of this report is exploratory i.e. formulate problem from more precise investigation. The major emphasis is on the discovering of ideas and insights. The formulate research design is characterized by great amount of flexibility. It’s contains is characterized by great amount of provided opportunity for considering different aspect of a problem undertaken in the study.

1. COLLECTING OF DATA

Data was collected on the basis of primary and secondary.

Primary data;The data which is being collected for the first is known as Primary data.

Secondary data;The data which is already assembled is the secondary data i.e. magazines, websites and organization report.

2. METHODOLOGY OF THE STUDY

Exploratory;To find the per day stock and per day sale at different outlets, exploratory research method was adopted. A survey form was prepared and the retailers were asked to answer them during the course of their interview.

Schedule method;Dealers response were conducted with the help of prepares schedule, sample are taken at different location of Patna.

Documentary observation; Books, annual report, websites, published and unpublished materials.

Field observation;During training period we did extensive survey of the distribution outlets and consumer to observe the marketing operation perform by the organization.

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ENVIRONMENT SCANNING

“The process by which organization monitors their relevant environment to identify opportunities and threats affecting their business are known as environment scanning.”

The external environment in which PEPSI beverage exist, consist of a bewildering variety of factors. These factors (may also termed as influences) are events, trends, issues and expectations of different interested groups. These factors are explained below;-

Events are important and specific occurrences taking place in different environment sectors..

Trends are the general tendencies or the courses of action along which events takes place.

Issues are the current concerns that arise in response to events and trends.

Expectations are the demands made by interested groups in the light of their concern for issues.

By monitoring the environment through environment scanning, the PEPSI considers the impact of the different events, trends, issues, and expectation on its strategic management process. Since the environment facing organization is complex and its scanning is absolutely essential, strategists have to deal cautiously with the process of environment scanning. Information for environment scanning is collected systematically. Information related to markets and customers, the changes in legislation and regulation which have a direct impact on an organization’s activities, government policy statements pertaining to PEPSI business and industry, and so on, could be collected continuously to monitor changes and take the relevant factors into account.

Lumbini Beverages conducts special survey and studies to deal with specific environment issues from time to time. Such studies may be conducted, for instance, when Lumbini Beverage has to undertake special projects, evaluate existing strategies, or devise new strategies. Changes and unforeseen developments may also be investigated with regard to their impact on the organization. Lumbini Beverages Pvt. Ltd. Information in a processed form, available from different sources both inside and outside the organization.

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TOTAL MARKET ENVIRONMENT

To know the total market environment I have done the market survey and dealer survey.

MARKET SURVEY

Market survey is one of the most widely used marketing research techniques. Its purpose is collecting specific data concerning the market that cannot be from the companies internal record or from external published source of data, market survey may be of various types like census survey etc.

DEALER SURVEY

In order to understand the Distribution network as well as market share of Pepsi among its competitors I conducted survey under the guidance of Mr.Kamal chadda(H.O.S. of Lumbini beverage), Mr. Manish Sahay(M.D.M.) and Mr. Haris kumar singh (C.E. of Lumbini beverage Pvt. Ltd.) .While conducting the survey, a format was provided to me, which was to be filled up the dealers so that it meets the requirements of the Organization. The dealer survey as mentioned earlier includes a variety of dealers.

I have tried to visit each outlet of the area given to me in order to understand the distribution network as well as the market share of Pepsi .The area given to me was Patna city where as I had to report daily to one of the warehouse of Lumbini beverage which is situated at Kumhrar Park.

Dealer survey as it increase the turnover of the company and also the investment of the money are increased from various marketing inputs such as case stock, advertisement.By the help of dealer survey we can get an idea, in which area investment is needed.

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INTRODUCTION;

Dealer survey method is primary method by which one get information with respect to following factor:-

1. Knowledge of market in terms of;-

Number of dealers Location of dealers Types of dealers Market output i.e. case stock, no. of glow sign board, no. of visi-cooler.

From this we know how good we are in the market place and in the areas where we are lacking . It may be found that in some place only the competitor’s brand s are available , then by the help of survey we can find out the reason behind non availability of Pepsi brands in specific area.The knowledge of case stock will indicate our “ case in trade” and that of competitors. This will indicate our case velocity which will help to plan our bottle as well as to know weather our distribution is effective or not. If our case stock is low then we may decide a case stocking campaign. Feedback from the market place regarding services of dealers will help us to improve our servicing in the weaker areas.Therefore, appropriate marketing strategy can be worked out depending upon the findings.

2. Distribution Effectiveness;

From the dealer survey we can find out the number of dealer and the stock and other details, non buyers will also be located. Activation of non buyer can be done immediately. With the above knowledge one can increase the number of routes to get increase dealer coverage and hence more effective distribution and higher sales. Also details of this will help to checkup on the route selling of sales man so that we can control them by closely monitoring their performance.

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3. Training group for future executive;

Good investigation towards this survey can be recruited to take a future job. This people will ideally suitable, as they would know the market thoroughly.

They should visit the counter on the daily basis including the remote places. Salesman should visit the counter on weekly basis.

4. How to increase distribution effectiveness;

After the above survey, the company can improve the distribution network. Immediate activeness of non buyers. Improve the dealers coverage. ccIncrease the realignment of routes.

Therefore , “dealers survey” are important keeping in mind that distribution forms the major marketing activity in our industry and also that through these surveys one acquires knowledge of the market.

It should be also added here that continuous dealer surveys are required because of the following reasons.

a) As our turnover increases we require skills to tackle the problem and dealer survey help in acquiring first hand as to use the skills effectively.

b) With our increased growth, investment of money are increased for various marketing inputs e.g. case stock, advertisement etc. and by survey we can get an indication of the areas in investment should be made to get the maximum benefits.

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USES OF DEALER SURVEY

1. Market knowledge;

Dealer survey gives the total profile of the market by knowing. Location of dealers The type of dealer No. of dealers who keep Coca-cola and Pepsi and comparing the stock Marketing inputs with respect to;-

a) Advertisement b) Servicingc) Visi-cooler

Dealer survey as the word indicates is the survey of every dealer of soft drink in the area. For practical purpose the dealers not only include the authorized dealer appointed by the company but it also includes the retailers- big or small grocery, shops, stationary, restaurant, betel shop etc. Beside these the various exclusive stalls and sales of pantry cars are also included in it. In a nutshell, by dealer we mean those who are dealing with the soft drink in some way or the other in large or small quantity, directly or indirectly.

Thus the study includes all such dealers which include various aspects;- Route wise no. of dealers Crate strength Per day sale Chilling aid Advertising Nature of outlets Schemes and pay-offs.

While conducting the survey of dealers, a format was provided to me, which has to fill up by the dealers so that it meets the requirements of the organization. The dealer survey as mentioned earlier includes a variety of dealers.

In order to understand the distribution network as well as the market share of Pepsi in Patna, I have tried to visit each and every outlets and where ever I went, I personally meet with retailers and tried to know their problem while selling Pepsi products.

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2. Real consumer;-

According to per day selling report of the Pepsi products, we can easily search the real consumer of the company. It is a FMCG product so general people to high-class people drink it. As temperature in the environment is grow its selling is automatically increase. We can see that Pepsi product is present everywhere because of its good distribution channel. In every betel shop to a good restaurant we can easily get the chilled Pepsi product. Pepsi has launched its products in different flavors to attract the consumers. Company knows what people want to drink.

3. Purchase method;-

As we can see that Pepsi product is present everywhere, so every people can buy it. Pepsi has launch its product in different range for convenient to every class people. The 200ml and 300ml is available for single person and 600ml and 1500ml is available for family pack. The company sales the 200ml and 300ml cold drink in glass bottle whereas 600ml,1500ml, 2000ml in plastic bottle. Here the consumer has to return the glass bottle where as there is no need to return the plastic bottle.

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LIMITATION OF THE STUDY

1. I have done my survey only in few areas of Patna.

2. Time period was very short to understand clearly about the company’s distribution network.

3. The behavior of the outlet owners was not appreciable.

4. Sometime they did not give the right information.

5. The report prepared by me is based on the collected information

6. The respondent may be biased.

7. Temperature- as the temp. was very high, we were forced to end our work as soon as possible per day.

8. Lack of fund was also one of the major obstruction to limit my survey to a small sample of respondent

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ANALYSIS AND INTERPRETATION

TYPES OF OUTLETS VISITED

RELATED MARKET SHARE

BRAND PREFERANCE

PERCENTAGE SHARE OF COOLING EQUIPMENT

COMPANY WHICH GIVES MORE SCHEME

PERCENTAGE SHARE OF SATISFACTION OF DISTRIBUTION

PERCENTAGE SHARE OF GLOW SIGNAGE

Total number and types of outlets visited

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Sr.no

Types of outlets

No. of outlets

1. General /kirana store 62

2. Sweet shop 46

3. Pan shop 44

4. hotels 26

5. Phone booth 58

6. Cold drink centers 33

7. Others 40

TOTAL 309

TYPES OF OUTLETS

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General/kirana store20%

sweet shop15%

Pan shop14%

hotels8%

Phone booth19%

cold drink centre11%

other13%

Interpretation; The maximum number of outlet in Patna is of General/kirana store then Phone booth & then others, so the distributors should distribute the product segment wise accordingly.

RELATED MARKET SHARE OF PEPSI & COCA-COLA

47

No.of outlet covered % (approx)

PEPSI 115 40%

COCA-COLA 184 60%

TOTAL 309 100%

PEPSI COCA-COLA0%

10%

20%

30%

40%

50%

60%

70%

Series 1

Interpretation;- From the above diagram it is clear that Coca-cola has captured more market than Pepsi.

BRAND PREFERANCE OF PEPSI PRODUCT

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PEPSI M.DEW SLICE 7-UP MIRINDA

Series 1 0.35 0.1 0.15 0.25 0.15

3%

8%

13%

18%

23%

28%

33%

38%

Series 1

Axis Title

Interpretation;- the above diagram shows the brands preferred by the customer, so the distributor should made available the product as per the demand of the retailers

PERCENTAGE SHARE OF VISI-COOLER

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Product name Number %( approx)

PEPSI 89 29%

COCA-COLA 164 53%

OWN 56 18%

TOTAL 309 100%

PEPSI COCA-COLA OWN0

20

40

60

80

100

120

140

160

180

PEPSI; 89

COCA-COLA; 164

OWN; 56

percentage share of VISI coolers

Interpretation: From the above diagram we can see that the % of visi coolers

distributed by Pepsi is low comparing to coca-cola.

PERCENTAGE SHARE OF ICE-BOX OF DIFFERENT SOFT DRINKS

PRODUCTS NO.OF BOXES %(APPROX)

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Pepsi 21 24%

Coca-cola 53 61%

Own 13 15%

Total 87 100%

PEPSI COCA-COLA OWN

Series 1 21 53 13

5

15

25

35

45

55

% share of ice boxes

Axis Title

Interpretation: - on the following diagram we can absorb that 53% of ice boxes are distributed

by coca-cola which is comparatively 23% higher than Pepsi, so we can say that coca-cola is

focusing more on cooling equipment that makes the goodwill of company between the retailers.

COMPANY WHICH GIVES MORE SCHEMES

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PEPSI65%

COCA-COLA35%

Interpretation; from the above diagram it is clear that Pepsi has invested more on scheme as

compared to coca-cola

PERCENTAGE SHARE OF SATISFACTION OF DISTRIBUTION

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No. of retailers satisfied %(APPROX)PEPSI 139 45%

COCA-COLA 170 55%TOTAL 309 100%

PEPSI45%

COCA-COLA55%

INTERPRETATION: From the above diagram it is clear that retailers are not satisfied with distribution of Pepsi as compared to Coca-cola.

PERCENTAGE SHARE OF GLOW SIGNAGE

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PRODUCTS NO. OF SIGN BOARD %(APPROX)

Pepsi 96 37%

Coca-cola 164 63%

Total 260 100%

PEPSI37%

COCA-COLA63%

% share of glow sign board

INTERPRETATION: From the above diagram it is clear that 37% of glow sign board is of

Pepsi while 63% is that of coca-cola.

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FINDING, CONCLUSION, SUGGESTION

55

FINDINGS

The collected data which were analyzed came out with the following conclusion.

The number of Coca-cola outlet is more than that of Pepsi.

The retailers are not satisfied with the distribution of Pepsi products.

The distribution network of Pepsi is not as much strong as compared to Coca-cola.

The Pepsi products are not reaching to each and every corner of Patna.

Most of the dealers want glow signboard and chilling equipments, which they are asking from long time.

Pepsi has invested more on scheme for the retailers. Yet there is a need of large investment in visi-coolers and glow signboard.

All the products of Pepsi like mountain dew, slice, Tropicana is not provided when retailers demand it.

In cola segment Thumps-up is the main competitor of Pepsi, in lime segment Limca and Sprite is the main competitor of M.Dew and 7-Up, where as in juice(mango) segment Maaza is main competitor of Slice.

The young generation of people likes most Pepsi, 7-Up and Mountain Dew while women, children and older people like slice and Mirinda.

The Performance of visi-cooler is not satisfactory.

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CONCLUSION

We all know that Pepsi is the second largest soft drink company in the world. It enters into the Indian market after the exit of the Coca-cola from India. So it had a better chances to become the no. 1 atleast in India. But due to several reasons it fails to achieve that position. These reasons include the distribution network of the company.

Distribution network is a way through which the goods flow from the producer to the consumer. It plays a major role in success of a company because any good which has been produced should be distributed to the retailers so that they could be sold to the real consumers.

As a franchisee of PepsiCo in Bihar, Lumbini beverage has focused on Direct store delivery method for the distribution of its product in Patna. This is a method in which goods are distributed to the retailers from the different warehouses of company in the guidance of the company executives. The Lumbini beverages Pvt. Ltd. has two warehouses in Patna from where the goods are distributed .one is located at Kumhrar park and the other one is located at Patliputra.

This direct store delivery method is good in many ways like in this method the company executives have a direct interaction with the retailers by which they will come to know their problem while selling the product. But yet the company needs many correction in this area. Like the company vehicle is not reaching to each and every area of the city. Only 40% outlets are covered by the distributors. The areas like P.C. colony, Doctors colony, Nala road does also have the potential market but in these areas the company vehicle have not reached since last one & half year. In peak season like summer, the distributor could not make available all the products to the retailers. The signage of the company has not been distributed as per the demand of the retailers. And if we come to the distribution of Visi-cooler, it also has not been distributed as per the demand. It is just the half of what Coca-cola has distributed to its retailers. Moreover ,whatever visi-cooler has been distributed, its performance is not satisfactory.

So, if the company will focus on the above mentioned problem, it will be helpful for the company to capture more market share.

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SUGGESTIONS

More improvement is required in the distribution network in the outskirt and in remote areas, because in the peak season like summer the small dealer are taking goods twice or thrice and in between if the distributors could not supply them, the competitor will get the opportunity to supply the goods.

Company executives should visit the counter on daily basis.

Executive should take the feedback from the retailers about the service of the salesman and the distributors.

Salesman should have good interaction with the retailers which results company in increase in sales.

The criteria to provide Glow sign and Visi-cooler should be changed and a separate department should handle this.

Regular visit of technical person is required to solve the problems of visi-coolers on the market at the right time.

The entire Pepsi products should be displayed at one place so that the customer can aware about the different brands of Pepsi.

Due to its low fizz and sweetness, pepsi is not liked by every one . so Pepsi should come out with more fizz.

Mountain Dew should be made available in 200 ml also.

Pepsi should make available all its products at railway stations, bus stand or at highway because at these place people have not so much time to wait for.

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BIBILIOGRAPHY

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1. Philip Kotler, Marketing management(12th edition)

2. Ramaswamy and Namakumari, McMillan India,7th edition

3. www.Pepsi.com

4. www.Pepsizone.com

5. www.google.com

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ANNEXURE

PEPSI

A STUDY OF DISTRIBUTION NETWORK OF LUMBINI BEVERAGE PVT. LTD.

QUESTIONNAIRE FOR RETAILERS

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Name of the shop/outlet ;………………………………………….

Address/Location ;…………………………………………………..

Type of outlet ;……………………………………………………….

General store Pan shop

Sweet shop juice shop

Dhaba/Canteen Others

1. Which brand of soft drinks you deal in ?a) Pepsib) Coca-colac) Bothd) None

(if answer is D, outlet is terminated)

2. Which brand of cola provides you better facility ?a) Pepsib) Coca-colac) Both

3. How many crates of Pepsi & Coca-Cola you sell per day?a) 0-1 cratesb) 1-2 cratesc) 2-3 cratesd) 3 & above

4. Which company’s signage you have in your outlet?a) Pepsib) Coca-colac) Bothd) None

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5. Which company’s visi-cooler you have in your outlet?a) Pepsi b) Coca-colac) Bothd) Own

6. Does the distributors vehicle visits in this area regularly ?a) Yesb) No

7. After how many days you take delivery of soft drinks?a) Dailyb) After 1 dayc) After 2 daysd) 3 & abovee) Weekly

8. Are you satisfied with the distribution of Pepsi?a) Yesb) No

9. Which company gives you more schemes?a) Pepsib) Coca-cola

10. Any suggestion for the betterment of Pepsi?

……………………………………………………………………