Prabhakar Project

Embed Size (px)

Citation preview

  • 8/3/2019 Prabhakar Project

    1/62

    A PROJECT REPORTON

    COMPARATIVE ANALYSIS OF DISTRIBUTION

    SYSTEM OF PEPSICO REGARDING ITS INCREASE OFMARKET SHARE IN PATNA

    WITH SPECIAL REFERENCE TO PEPSI INDIAAT

    LUMBINI BEVERAGES PVT LTD. BIHAR

    PROJECT REPORTSUBMITTED IN THE PARTIAL FULLFILMENT FOR THE AWARD OF DEGREE OF

    MASTER OF BUSINESS ADMINISTRATION(2008-2010)

    CONDUCTED BY

    DEPARTMENT OF BUSINESS ADMINISTRATION (MBA)

    Approved by AICTE, Ministry of HRD, Govt. of India & Magadh University, Bodh Gaya)

    A.N. COLLEGE, PATNA-13(NAACAccredited-AGrade & CPE Status by UGC)

    Under the guidance of Submitted by

    Dr. D.K.Singh PRABHAKAR KUMARFaculty Member MBA (Marketing with Finance)

    A.N. College, Patna Roll: 49Magadh University Session: 2008-10

  • 8/3/2019 Prabhakar Project

    2/62

    DECLARATION

    I Prabhakar Kumar hereby declare that the following project report titled

    COMPARATIVE ANALYSIS OF DISTRIBUTION SYSTEM OF PEPSICO

    REGARDING ITS INCREASE OF MARKET SHARE IN PATNA is an

    authentic work done by me. This is to declare that all my work indulged in the

    completion of this Project Report such as research, mapping of depot- 2,

    competitor analysis, sales promotion, team management is a profound and honestwork of mine.

    PRABHAKAR KUMARDATE: - MBA IV SEMPLACE: - A.N.COLLEGE PATNA

  • 8/3/2019 Prabhakar Project

    3/62

    COMPANY GUIDE CERTIFICATE

    This is to certify that the summer project titled COMPARATIVE

    ANALYSIS OF DISTRIBUTION SYSTEM OF PEPSICO REGARDING

    ITS INCREASE OF MARKET SHARE IN PATNA at Lumbini beverage

    Pvt Ltdis an original work of Mr.Prabhakar Kumar, student of A.N.COLLEGE,

    PATNA and is being submitted for partial fulfillment of the award of the Master

    of Business Administration (MBA) degree of Magadh University, Bodhgaya.

    The final compilation of the report was also done under my guidance and it has

    not been submitted earlier to anywhere else.

    Place: Patna (Sandeep Banerjee)Date: (GM), Pepsi

    Signature

  • 8/3/2019 Prabhakar Project

    4/62

    CERTIFICATE OF THE INSTITUTE GUIDE

    This is to certify that the project titled COMPARATIVE ANALYSIS OF

    DISTRIBUTION SYSTEM OF PEPSICO REGARDING ITS INCREASE

    OF MARKET SHARE IN PATNA is an original work ofMr. Prabhakar

    Kumar bearing University Registration Number 2121532/03 a student ofA.N.COLLEGE, Patna and is being submitted in partial fulfillment of the

    requirements for the award of the degree of Master of Business Administration

    of Magadh University , BodhGaya. The summer project report has not been

    submitted earlier to this University or to any other University / Institution for

    the fulfillment of the requirement of a course of study.

    .

    Date: (Dr. D.K.Singh)

    Place: signature

  • 8/3/2019 Prabhakar Project

    5/62

    PREFACEMarketing is a restless, changing and a dynamic field. In ever increased

    premium has been placed on making and marketing decisions. Companies are

    becoming more market-driven in this strategic decision making. For that

    companies require to determine the need and wants of specific target market and

    then delivering them.

    My aim remains to provide a research study of interest to those who are

    concerned. In doing this I have been able to incorporate many of the helpful

    suggestions. These were more than welcome. My target market was Patna,

    which is capital of Bihar.

    For a research to have an impact the business needs to take those demands and

    then into commercial proposition by adding design and operational

    understanding to meet the demands challenge profitability.

    Marketing research specifies the information manages and implements the data

    collection process, analysis and communicate the finding and their implication.

    This research study has been done under many constraints, in spite of that I

    have tried to analyze the problem with specific outlook.

    Hope, the report will help the top level managers as well as the bottom line to

    have a view of the market.

    Last but not the least, thanks to the suggestion and support. I have tried to do

    this training with my full interest, determination, honesty and sincerity. Any

    short coming in it is unintentional and due to my inexperience.

    VISHAL KALIAMBA-3rd SEM

  • 8/3/2019 Prabhakar Project

    6/62

    ACKNOWLEDGEMENT

    In the name of God, the most benevolent and the most merciful, First of all I am

    grateful to Director, Management Programme Department of AMBALIKAINSTITUTE OF MANAGEMENT & TECHNOLOGY(Lucknow) forconducting this project training.

    This project has been made possible through the direct and indirect cooperationof various person for whom I wish to express my appreciation and gratitude.

    First and foremost, my intellectual debt is to those academicians andpractitioners who have contribute significantly to the field of marketing research

    and methodology and have been used by me while doing the research work.

    I would like to express my indebtedness to N.K.PRASAD MANAGER-HRDLUMBINI BEVERAGES PVT LTD HAJIPUR For giving me opportunity tolearn and conduct research in there esteemed organization. Words are too littleto express my gratitude to them.

    I also express my per found sense of gratitude to MR. SANDEEPBANRJEE (GM-SALES)Patna of M/S Lumbini Beverages Pvt. Ltd, Hazipur,who provide me an opportunity to work and also guide me an opportunity towork and also guide me at every to work and also guide me at every step lf myproject. His proper direction and constant inspiration and constant inspirationprovide to be asset for this project.

    At first, I would like to express my sincere thanks and deep gratitude to myesteemed guide Dr.D.K. SINGH, for his kind initiative, guidance and valuablesuggestion without which the completion of this would have not been possible.

    I am beholden to my parents and family, my friends for the blessings and

    encouragements.

    However, I accept the sole responsibility for any possible errors.

    PRABHAKAR KUMAR

    MBA- IV SEM

  • 8/3/2019 Prabhakar Project

    7/62

    CONTENTS

    PREFACE

    ACKNOWLEDGEMENT

    EXECUTIVE SUMMARY

    1. INTRODUCTION TO THE STUDY 8-13

    RATIONALE

    OBJECTIVES

    IMPORTANCE AND RELEVANCE OF THE STUDY

    SCOPE

    LIMITATION

    2. ORGANISATION PROFILE 14-29

    HISTORY AND DEVELOPMENT

    VISION AND MISSION

    PRODUCT PORTFOLIO

    3. ORGANISATION STRUCTURE 30-35

    HISTORY AND ORGANISATIONAL STRUCTURE OF LUMBINI

    BEVERAGE PVT. LTD. HAZIPUR

    4. COMPETITORS ANALYSIS 36-39

    5. RESEARCH METHODOLOGY 40-41

    RESEARCH DESIGN

    SOURCES OF DATA

    DATA COLLECTION TOOLS

    SAMPLING DESIGN

    6. DATA ANALYSIS AND INTERPRETATION 42-48

    7. FINDINGS 52-53

    8. RECOMMENDATIONS 54-56

    APPENDIX 58-62

    DAILY CALL SHEET AND QUESTIONNAIRE

    BIBLIOGRAPHY

  • 8/3/2019 Prabhakar Project

    8/62

    CHAPTER 1

    INTRODUCTION TO THE STUDY

    RATIONALE

    OBJECTIVES

    IMPORTANCE AND RELEVANCE OF THE STUDY

    SCOPE

    LIMITATION

  • 8/3/2019 Prabhakar Project

    9/62

    INTRODUCTION

    Good marketing is no accident, but a result of careful planning and execution.

    Marketing practices are continually being refined and reformed in virtually all

    industries to increase the chances of success. Marketing excellence is rare and

    difficult to achieve. Marketing is both art and science there is constant

    tension between the formulated side of marketing and the creative side.

    The world economy has undergone a radical transformation in the last two decades

    Geographical and cultural distance have shrunk significantly with the

    improvements in the production, transportation and communication. These

    advances have permitted companies to widen substantially both these markets and

    their supplier sources. And thus the role of marketing becomes wide.

    Marketing is the specialization subject of MBA curriculum. When a flood of

    consumer products are coming into the market, every company needs people

    specialized in marketing to promote their product.Marketing deals with identifying and meeting human and social needs. One

    of the shortest definitions of marketing is meetings needs profitably.

    The 21st century is the era of Advertising, Marketing and Sales Production;

    Marketing is to convert social needs into profitable opportunities. As it is said

    Marketing thinking starts with the human needs and wants. Apart from

    basic necessities of air, water, shelter and clothing, every person has strong desirefor recreation and entertainment. They have strong preference for particular brand

    of basic and services. Marketing serves as the link between the societys needs and

    its pattern of Industrial response.

    Beverage industry is one of the fast growing industries in India. We can divide

    Beverages into two sections i.e. Alcoholic & Non-alcoholic. The non-alcoholic

    drinks are soft drinks that can be further classified Cola, Lemon, Orange, Mango

    and Apple segment.

  • 8/3/2019 Prabhakar Project

    10/62

    Rat ionale

    To determine the market position of PepsiCo product in Patna region.

    To determine the scope improvement in market position.

    To determine the weakness of distribution channel of PepsiCo products.

    To determine the customer/Retailers response towards PepsiCo Products.

    Objectives of Study

    Management is a course which teaches the student to get the work done

    properly from different available sources viz. man, machine, material, money

    etc. So there can be a satisfaction from the organization side and the workers

    side who play a significant role in achieving success. So far the fulfillment or

    the management course, it gives emphasis to project work and students learn

    how to plan in practical terms rather in terms of theory only. Student tends to

    develop analytical and problem solving skill. We necessary become motivated

    and competitive, in fact all the learning that goes on for the two year term

    become so much the part of our thinking that we developed a well all rounded

    personality.

    The following are the objectives and purpose of the study

    For the fulfillment of MBA programme as realized by the

    A.N.COLLEGE, PATNA (AICTE approved).

    To care and contact with the working of an organization and to see the

    different types of marketing activities. The main emphasis is on the

    distribution Channel aspect of the organization.

  • 8/3/2019 Prabhakar Project

    11/62

    Whatever the subject taught in the class room of MBA course that is

    completely theoretical. So during the training period we compare how the

    marketing research (sales) activities (practical) of our organization with

    the theories.

    To test the effectiveness of the distribution network.

    To know the importance of availability & visibility of product and chiller.

    To check the capacity of chiller of Pepsi and its competitors.

    To check the SKUS of PepsiCo and its competitors.

    Selling and distribution of Beverage Product.

    To provide the useful information to the PepsiCo regarding its

    competitors.

    To know the per day sale of Pepsi brand and its competitors in crates.

    To know the Outlet & location from where the consumer buy product.

    To know other promotional measures that would be effective in increase

    share.

    To know the suggestive steps that would be beneficial to PepsiCo in order

    to improve its distribution network.

    Marketing of PepsiCo Products.

    Looking to the problem of retailers regarding PepsiCo products.

    Finding the gap between retailer and Depot.

  • 8/3/2019 Prabhakar Project

    12/62

    IMPORTANCE AND RELEVANCE OF THE

    STUDY

    Cold drinks were started with the idea of quenching the thirst of the persons

    traveling. It was also felt that reliable good water was not available everywhere.

    So people would really on their packed bottle and with this idea its makers

    made these drinks available mostly, at those places where water was not

    available i.e. on highways and long distance trains.

    But slowly and slowly with its beautiful taste these become very popular and

    now they are available not only in the market and street corners, but also people

    have started keeping it in their house.

    The credit of popularizing the soft drink goes to Coca Cola. This was the drink

    which is liked by all ladies, gents and children. Now days soft drinks are

    quenching thirst looks more often; they are taken due to habits.

    Gold Sport is considered as the first branded soft drinks, established 53 years

    ago before all empowering Coca Cola faced competitions and its euphoric

    image built up in the western countries helped it get ready clientele and clamor.

    Parle Export Pvt. Ltd. Is regarded as the first Indian Company introducing

    Limca a leman drink complementary to it this has also introduced Cola Pep one

    which was withdrawn in the face of tough competition from Coca Cola.

    When Coca Cola bid a Farwell in 1977, Indian market was open for various

    new forward publishing different brands in the markets. Parle people introduced

    their Cola, Thums Up with a mighty saying Happy days are here again as if

    happy days went away with Coca Cola. Pure drinks of Delhi also without lasing

    much introduced pure drinks were producing and marketing Coca Cola earlier

    Campa Cola with Campa orange and MCampa lemon. Modern Bakeries entered

    the market with Double Cola Seven, Mohan Makings with Merry & Plkup and

    McDowell with Thrill, Rush and Sprint. This is Indian market where there was

    no competition and high voltage advertising was on each one was trying their

  • 8/3/2019 Prabhakar Project

    13/62

    best to become number one company with A class product in the field of Soft

    Drink business. Now after a long gap government of India had given permission

    to Coca Cola, which joined with Parle to do business in India. They are trying

    their best to regain prestige which it had before. The much rival of Parle is

    Pepsi an American concern. It started business on the Indian soil just a few

    years ago.

    Now Pepsi is going all out to prove that they are the best. But now due to some

    factors competition among them has become stiffen. So in this way the

    important activities have increased.

    SCOPE

    1.The geographical scope of my study is confined to Patna.

    2. The bulls eye is to have a cognizance of the level of satisfactionregarding the distribution network of PepsiCo product to the depot andretailer.

    LIMITATIONS

    Retailers are reluctant to provide the information regarding the sales

    volume and stock.

    Some retailers in were not co-operative in their approach.

    Retailers are not fully aware of the new schemes offered by the

    Company.

    Lack of time duration for the proper administration of research as timeduration of 45 days was not sufficient for the research.

    Lack of financial resources as the researcher has to find his study by his

    own financial sources.

    Insufficient research experience.

    Indifferent behavior of the retailers exhibited at times.

  • 8/3/2019 Prabhakar Project

    14/62

    CHAPTER 2

    ORGANISATION PROFILE

    HISTORY AND DEVELOPMENT

    VISION AND MISSION

    PRODUCT PORTFOLIO

  • 8/3/2019 Prabhakar Project

    15/62

    1.INDUSTRY

    1.1 HISTORY OF PEPSI-COLA INDUSTRY.The Pepsi-Cola story itself begins with a drugstore in New

    Bern, North Carolina, and a pharmacist named Caleb

    Bradham. Bradham's aim was to create a fountain drink that

    was both delicious and healthful in aiding digestion and

    boosting energy. It would be free of the impurities found in

    many bottled health tonics, and it would contain none of the

    stronger narcotics often added to popular fountain drinks.

    As most pharmacies in 1896, Bradham's drugstore housed soda fountain where the

    small-town clientele would meet to socialize. Bradham's establishment even

    featured a kind of primitive jukebox, which for a nickel would entertain the listener

    with the latest musical selections rendered by violin or piano or both It was at such

    convivial gatherings that Bradham would offer his latest concoction. Over time,

    one of his recipes became known as Brad's Drink. A memberof the press declared, "It has sparkle and just enough acidity

    to make it pleasant." Soon its popularity would exceed the

    boundaries of New Bern. The cellar of Bradham's drugstore

    served as the original site of Pepsi-Cola syrup manufacturing.

    Electing to start his new business on a small, manageable

    scale, Bradham based his operation on familiar territory. Ingredients were hauled

    downstairs to cramped quarters where they were mixed together and then cooked

    in a large kettle. The syrup was subsequently poured into one-gallon jugs and five-

    gallon kegs to be shipped to customers. By 1902, the demand from surrounding

    drugstores increased so dramatically it dawned on Bradham that Pepsi-Cola was

    something special. On December 24, 1902, he filed incorporation papers with the

    state of North Carolina; in these, he indicated his plans for corporate branches in

    Virginia, Maryland, Pennsylvania, and New York. PepsiCo, Inc. is currently one

  • 8/3/2019 Prabhakar Project

    16/62

    of the most successful consumer products company in the world with annual

    revenues exceeding $30 billion and has more than 480,000 employees. PepsiCo,

    Inc. began as a successor to a company incorporated in 1931, known as Loft Inc.

    Once known as PepsiCo Cola, the company expanded its business and adopted its

    current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger

    dramatically increased PepsiCo's market potential and set the foundation for the

    company's tremendous growth. PepsiCos products are recognized and are most

    respected all around the globe. Currently, PepsiCo divisions operate in three major

    US and international businesses: beverages, snack foods, and restaurants. In each

    of these businesses, PepsiCo has attained a leadership position as being the worldleader in soft drink bottling g, the world largest snack chip producer, and the world

    largest franchised and company operated restaurant system. The corporations

    increasing success has been based on high standards of performance, marketing

    strategies, competitiveness, determination, commitment, and the personal and

    professional integrity of their people, products and business practices. PepsiCo's

    overall mission is to increase the value of our shareholders' investments throughsales growth, investments and financial activities. PepsiCo believes their success

    depends upon the quality and value of their products by providing a safe, whole

    some, economically efficient and a healthy environment for their customers; and

    by providing a fair return to their investors while maintaining the highest standards

    of integrity.

    1.2 Pepsico headquarterPepsiCo world headquarters is located in purchase, New York, approximately 45

    minutes from New York City. Edward Durrell stone, one of Americas foremost

    architects, designed the seven-building headquarters complex. 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.

    Masters such as august Rodin, henrys Laurens, Henry Moore, Alexander Calder,Alberta Giacometti, Renaldo pomander and Claes Oldenburg focus the collection

  • 8/3/2019 Prabhakar Project

    17/62

    of works on major twentieth century art, and features works. the gardens originally

    were designed by the world famous garden planner, Russell page, and have been

    extended by Franois goffinet1. the grounds are open to the public, and a visitor's

    booth is in operation during the spring and summer.1990 saw the coming of the

    multinational company Pepsi entering the Indian market. 11 years after the exit of

    coca cola. it had name, fame and edge of being one of the best in the game and it

    also offered stiff competition to parley and coke. Pepsi cola company founded by

    Cleb Badham in 1890 at north Crolina in USA now it is ked 86th (1998) in the

    world with the asset of around $25000 million, having its head quarter at Atlanta.

    Its CEO is roger enrico and Pepsi co. India holding chairman is Mr. Rajiv Baksi.Pepsi co. Indias is at gurgaon. Presently is operating in 196 countries. in India it

    has 34 bottling plant of them 8 are cobo and 26 are fobo of which one in Trity

    Drinks Pvt Ltd.

    1.3- SOFT DRINK INDUSTRIES IN INDIA

    A soft drink is a non-alcoholic beverage. It is artificially flavored and contains no

    fruit or pulp. India with population of more than 100 crores is potentially one of

    the largest consumer markets in the world after China. The consumer market can

    be defined as the market for products and services that are purchased by

    individuals as house holds goods for their personal consumption. Soft drink is a

    typical consumer product purchased by individuals to quench thirst and secondly

    for refreshment. Searching for the point of Indian soft drinks we first document on

    Gold Spot, this was the first brand soft drink in India. It was introduced by PARLE

    during later part of 40s.

    Cola giant, Coca-Cola was the first foreign soft drink to be introduced in India in

    1965, Coca-Cola make a very good beginning and dominated the whole scheme

    right from the word go. It (Coca-Cola) faced no competition at that time. COCA

    COLA entered India in the year 1993 In collaboration with PARLE INDIA LTD.

  • 8/3/2019 Prabhakar Project

    18/62

    The marketing people did not even receive to publicize Coca-Cola for it

    sold first like probability not-cakes. This extraordinary success of soft

    drinks can be attributed to the following factors:-

    Absence of contemporary competitive brand.

    Euphoric image built up in the Western countries proceeded the entry

    into Indian Market; and

    Indians are very found by nature of foreign goods, services etc. due to

    prolonged foreign rules.

    Parle Exports (P) Ltd, later in 1970 introduced Limca, Lemony Soft drinks. Before

    Limca introduce, they had tentatively introduced Cola, Pepino, which they had to

    soon withdraw in the face of battering confrontation with Coca-Cola.

    Three of four groups of Indians companies who had the required production

    capacity started their own brands of Cola, Lemon, Orange, but failed to achieve

    their goal on a national basis. India always has love and hate relationship with

    MNCs which gave a significant opportunities to soft drink industries in India

    when Coca-Cola decided to windup its operation in 1977 rather than bowing to the

    Indian government insisting on:-

    Dilution of equity, as the government felt that lots of foreign currency was

    being wasted.

    Manufacturing of the top-secret concentration in India.

    Disclose of the chemical composition of the essence.

    This left a large vacuum in the popular soft drink market, and a vista was opened to

    any company with the requisite, technical, marketing and organizational skills.

    The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian

    Soft Drink. New soft drink in the form of Tetra pack entered the market among

    Frooti, Jump-In and Treetop were the prominent once. Till 1977 their equipped

    bottling plants and the distribution network a longing to be of no use. It took them

  • 8/3/2019 Prabhakar Project

    19/62

    one year to develop new formula to survive and gradually came up with Campa,

    Lemon, Orange and Cola that order.

    However Parle, the pioneer in the soft drinks, blazed its way to national

    prominence with their product Thumps Up bearing the slogan Happy Days Are

    Here Again. This particular slogan helped to win over the loyalists or addicts to

    Coca-Cola, who was in the state of Cola Shock or Cola Depression. Soon the

    Indian Soft drink industry started at a phenomenal rate, and all Parle Products Gold

    Spot, Limca and Thumps Up became the brand leader in their own segment.

    In spite of all these, the drink market still has large gap, as claim by soft drink

    manufacturers. To fill these gaps there are many soft drinks concentrate andsquashes flooded the market. The Indian soft markets basically offered three

    flavours i.e. Orange, Lemon and Cola.

    PEPSIThe Indian Experience

    Previously there were two ads. Tags Yehi Hai Right Choice Baby, Nothing

    Official about It & Yeh Dil mange More, which immediately ring a Bell its

    to be a Pepsi. But today this ad. Tag has been changed and now its "Yeh hai

    Youngistaan Meri Jaan!"

    Pepsi is a short span of its operations in India has found a place in hearts and minds

    of the Indian Consumers. The success has primarily been due to the innovative and

    passionate Indian team which has been built over the years. Pepsi is a trendsetter

    managed and run by Indians, where important decisions are taken locally.

    Pepsi started its operations in India in 1989 and since Pepsi Co. has set up a fully

    integrated operation India viz. manufacturing, research and development,

    marketing, distribution and franchising covering fruit/vegetable processing, export,

    snack foods and beverages. In 1993 Pepsi Co. set up a hold company to further

    accelerate growth the future through new initiatives and joint ventures. Pepsi Co.

    fully committed to India and the national objective of development of technology

    and accelerating exports and employment. It has brought in over $500 million in

  • 8/3/2019 Prabhakar Project

    20/62

    foreign exchange as well as technology, which is used for its global network by

    way of royalty, know how of dividends.

    Pepsi Co. has a turnover $25 billion, half of which comes from beverages and the

    other half from the snacks foods divisions. The beverages arm of the Pepsi Co. is

    Pepsi Cola Company and the snacks foods company is called Frito Lay Inc. The

    year 1998 is the centennial year of Pepsi.

    Beverages:Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur, Punjab,

    with an investment of$ 5 million the state of the art Plant houses a world class

    laboratory where soft drinks from all over the world are tested. This concentrate

    plant supplies Pepsi, 7Up, Team, Miranda, Orange, Apple & Lemon flavors to

    all the Pepsi Bottling plant in South Asia.

    Pepsi has 40 Bottling plant in India, out of which 16 are company owned and 24

    are owned by Indian franchisees, Pepsi Co. has invested heavily on up gradation of

    these bottling plants and has put 5 green fields projects in backward areas such as

    Jainpur and Bazpur in U.P. Bharuch in Gujarat, Sonarpur in West Bengal and

    Naclamangala in Karnataka.

    New project are coming up in Maharastra and Tamilnadu. In addition to the

    Companys own Bottling Operations (COBO), Pepsi has 24 Franchisee Owned

    Bottling Units in India. These franchisee manufacturers are also planning to install

    substantial additional capacities. In last two years Pepsi Co.s franchisees have put

    new bottling plant at Jaipur, Bhopal, Hajipur (Bihar), Guntur (A.P) and Gawahati

    (Assam) with further investments. Pepsi Co.s franchisees are amongst the best in

    the Pepsi world and the 1998 two Indian Franchisees were chosen for being the

    Bottler of the Year amongst all International Bottlers.

  • 8/3/2019 Prabhakar Project

    21/62

    Juices:

    Pepsi Co. plans to launch juices in a bog way in India, there by helping the farmers

    in fruit procurement. Pepsi Co. Agriculture Scientists has undertaken research on

    Mango, Guava and Oranges and these fruits would be the priority area for the

    juice launch in India. Presently Pepsi has one juice brands Slice, which are

    presently mango juice brands. Pepsi Co. also has bottling lines in most of the

    plants.

    Developing Sports:

    Pepsi today is one of the main sponsors related activities in India and has counted

    to promote upcoming new players Cricket, Hockey and Football. In Mohali, Pepsi

    has developed a Pepsi Cricket Academy, which would develop over 500 Young

    Cricket enthusiasts in next five years. Similarly Pepsi cricket coaching camps and

    clinics are held to coach young boys in North & South.

    Community Relation:

    Most of the bottling plants are located in backward areas, thereby giving huge

    employment opportunities in these areas. Pepsi as a responsible company

    undertakes social projects in and around the bottling plants. These include supports

    to the education centers, sponsors, inoculation camps, providing free health

    checkup, initiating sanitation, drives, promoting literacy drives and helping village

    to put up bus shelter etc.

    Revenue Generation:

    It is estimated that Pepsi Co. and its franchisees generates over Rs. 500 Crores (in

    1997) to the exchequer by the collection of excise duty and sales tax.

    Marketing mix followed by Pepsi

    The tools of marketing mix are combined in such a manner that they give

    maximum mileage to the product from the factory to the consumers hand.

  • 8/3/2019 Prabhakar Project

    22/62

    Product

    Price

    Place

    Promotion

    Position

    Probing

    Perpetual Mapping

    The soft drink being a FMCG has a wider and scattered market. Thus to enable

    concentrated effort of marketing activities in different scattered market, for

    effectively setting the entire market is broken down into the following segments. Route market

    Home market

    At work market

    Route market:

    Outlet in this market caters to those people who are engaged in shopping, eating

    outgoing to and from work, in amusement center etc.

    Home market:

    Outlets in this market cater to people buying predominantly for home

    consumption, either by case or loose bottles.

    At work markets:

    Outlets in this market cater to people working in offices, factories etc. an attempt is

    always made to make soft drinks readily and conveniently available all day long

    while people are actively working.

  • 8/3/2019 Prabhakar Project

    23/62

    1.4- MARKET GROWTH RATE AND DEMAND TREND

    The Soft Drink industry was estimated at 6.5bn bottles in FY05. Volumes have

    been growing at 14-15% pa in the last two years. Per capita consumption in India

    is among the lowest in the World at 6 bottles as against 17 in Pakistan and 21 in

    China and Sri Lanka. Growth has slowed down in the current year to 8%, despite

    the low level of per capita consumption and the industry is expected to register

    sales of 7.5bn bottles in FY07.

    The demand for soft drinks is highly price sensitive. A study conducted by

    NCAER has shown that a 10% increase in soft drink prices, leads to a demand

    reduction of over 17%. Given the cutthroat competition, price changes by any one

    player induce similar price adjustment by other players too. Sales growth of the

    two large players have been driven by a high level of promotions and price wars

    and increasing investments being made in expansion of the distribution

    infrastructure. Both the leading players are yet to make profits. The industry hasreceived the largest amount of Foreign Direct Investment in the country of almost

    Rs4.7bn (US$1bn). The industry employs more than 125,000 people directly and

    indirectly. Additional investment of rs20bn in expected over the next three years,

    with a potential to create additional 95,000 jobs directly over the periods of

    marketing.

  • 8/3/2019 Prabhakar Project

    24/62

    Our Mission and Vision

    At PepsiCo, we believe being a responsible corporate citizen is not only theright thing to do, but the right thing to do for our business.

    Our Mission

    Our mission is to be the world's premier consumer products company focusedon convenient foods and beverages. We seek to produce financial rewards toinvestors as we provide opportunities for growth and enrichment to ouremployees, our business partners and the communities in which we operate.And in everything we do, we strive for honesty, fairness and integrity.

    Our Vision

    "PepsiCo's responsibility is to continually improve all aspects of the world inwhich we operate - environment, social, economic - creating a better tomorrowthan today."

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

  • 8/3/2019 Prabhakar Project

    25/62

    PRODUCT PORTFOLIO

    The products manufactured by Lumbini beverage Pvt. Ltd, are very limited in

    range as it is not independent to diversify its products when required. This is

    ecause it is a unit of PEPSI FOODS LIMITED, which supplies the concentrates

    or different brands of soft drink.

    These are:-

    PEPSI (cola flavour)

    MIRINDA (orange, apple & lemon flavour)

    7 UP (Clean lemon flavour)

    SLICE (Mango flavour, having concentration of

    ALPHANSO,TOTAPURI

    Mango 30:70)

    MOUNTAIN DEW

    TROPICANA(JUICE)

    The chief consumers are young masses. Beside direct consumer, hoteliers,

    restaurants owners and various other soft drinks peddlers also use them. Thus it

    can be said that these are the product for mass consumption.

  • 8/3/2019 Prabhakar Project

    26/62

    PRODUCT MANUFACTUREDThe product manufactured by Lumbini Beverages Pvt. Ltd. are very limitedranges as it is not independent to diversity its products. It is a unit of Pepsifood Pvt. Ltd. which supplies concentrates for drinks. They are:-

    Products Quantity Color Flavour

    Pepsi

    Mirinda

    Mirinda(Org)

    Mirinda(lmn)

    7 Up

    MountainDew

    Slice

    Lehar soda

    Pet

    Pet

    Can

    Aquafina(MineralWater)

    300 ml, 200ml

    300 ml, 200ml

    300 ml, 200ml

    300 ml, 200ml

    300 ml, 200ml

    300 ml, 200ml

    300 ml

    300 ml

    500ml,6ooml

    1lt,2 lt.

    250ml,330 ml

    1 lt.

    Brunt sugar

    Sun-set

    Tetrazine

    Tetrazine

    Colorless

    Colorless

    Sunset

    Tetrazine

    Brunt sugar

    Brunt sugar

    Brunt sugar

    Colorless

    Cola

    Orange

    Lime

    Mango

    Lemon

    Lemon

    Mango

    Lemon

    Cola

    Cola

    Cola

    White

    CONSUMERSThe main consumers of these products naturally are youth. Besides the directconsumer it is also used for the some purpose of providing it to the mass byhoteliers, restaurant owners and various other soft drink peddlers. Theseproducts are the choice of the new generation. Thus it can be said that it is aproduct of mass consumption.

  • 8/3/2019 Prabhakar Project

    27/62

    DISTRIBUTION CHANNEL AND MARKETINGSTRATEGY

    COBO(Company Owned business Operation )

    The company has total control of its decision and its implementation but ithas to invest own money.

    The COBO structure is as under. has 17 COBO Plants PepsiCo food limited and Pepsi India holding (Production & Plant) Pepsi India Marketing Co. Marketing sales and Distribution.

    FOBO (Franchise Owned Business Operation):

    India has 32 FOBO Plants:

    The company can hold its ideas to the franchise who may be reluctant to seecompany. Point of view, it greater exporter.

    NORTHERN LEVEL

    Pepsi Company has divided North India into three regions-Western. Centraland Eastern regions are known as the COBO (Company owned bottlingOperation).

    The Western region comprises of the FOBO. The FOBO bottling operationComprises of those in:-

    1.Barabani - (UP)

    2.Barelly - (UP)

    3.Varanasi - (UP)

    4.Agra - (UP)

    5.Panagarh, Burdwan - (W.B)

    6.Ferozabad - (UP)

    7.Panagarh,Calcutta - (W.B)8.Hajipur, Vaishali - (Bihar), Lumbini Beverges Pvt. Ltd.

  • 8/3/2019 Prabhakar Project

    28/62

    DISTRIBUTION CHANNEL OF LUMBINIBEVERAGE PVT. LTD

    To make its products available at the right place, at te right time in the market,the sales department of the company plays major attentation towards controllingthe channel of distribution.The company right from its beginning stage maintains single type of marketingchannel. The nature of channel is as follows:

    COMPANY

    DIPO

    RETAILER

    CONSUMER

    MARKETING `STRATEGY

    Marketing strategy is complete and unbeatable plan designed specifically forattaining the marketing objective of the firm. The markets objectives indicates,what the firm wants to achieves, the marketing strategy provides for achievingthem.

    The marketing strategy is not able idea. It is a well outlined plan, and there aredifferent ways to formulating it. Basically formulating of marketing strategyconsists of two main steps.

    Selecting a target market.

    Assembling the Marketing mix,

    Actually, the target marketing and marketing mix together constitute themarketing strategy of the firm.

    When the Pepsi Food Company entered in the Indian soft drink market, themarket was already prevailed by coke and previously it was Parle, Pepsi tried toestablish in India with a unique marketing policy. Pepsi took into consideration of

  • 8/3/2019 Prabhakar Project

    29/62

    youth segment target market. Through the advertisement of Pepsi highlight thestyle of living of young generation with different walk of life. Pepsi brought in its

    advertisement different stalwarts personality from fields like young cine

    stars. Sports stars and famous personality from fields. It has attracted the youngorganized the national and international sports programmed to attract the younggeneration.

  • 8/3/2019 Prabhakar Project

    30/62

    CHAPTER 3

    ORGANISATION STRUCTURE

    HISTORY AND ORGANISATIONAL STRUCTURE OF LUMBINI

    BEVERAGE PVT. LTD. HAZIPUR

  • 8/3/2019 Prabhakar Project

    31/62

    HISTORY OF LUMBINI BEVERAGES PVT. LTD. HAJIPUR

    History of Lumbini Beverages Pvt. Ltd.

    Steel City beverages Pvt. Ltd. is situated at Adityapur Kandra Road in

    Jamshedpur. Rushabh Marketing Pvt. Ltd. is the marketing division of Steel

    City beverages. Steel City beverages Pvt. Ltd. is a mother unit and its whole

    marketing activities are done through Rushabh Marketing Pvt. Ltd. Steel City

    beverages is one of the Pepsi foods Bottling plants in the country and one of the

    three in Eastern India. The other two Calcutta and Guwahati. But from 01-04-

    1997 Pepsi Foods Ltd. India determines to open another bottling plant which

    is situated at Hajipur namely Lumbini Beverages Pvt. Ltd. It is only for North

    Bihar.

    Steel City beverages Pvt. Ltd. was established by Late Mr. Dharam Chand

    Kamani in the month of June 1967. The machineries of its main plant were

    imported in 1968 and production started in March 1969.

    Before the establishment of Steel City beverages Pvt. Ltd. Coca Cola was

    not much popular among people of Bihar state as pure soft drink. Because at

    that time the bottles of Coca Cola was supplied by the outsiders who were

    unable to make Coca Cola

    popular in Bihar. So after considering the needs and desires of people Mr.

    Dharma Chand Kamani brought in Bihar. With this effort Coca Cola become

    popular among the people of Bihar.

    But in 1977 due to the sudden change I the policies of the Government the

    import license for the concentrate of Coca Cola was stopped. So Steel City

    beverages Pvt. Ltd. had to walk over to Indian Concentrate Companies. They

    were modem food industries

    supplied concentrate of double seven and non ice cream soda. In 1983 the

    company introduced a cola drink THRILL of Mc-Dowell & Co. Ltd. in the

  • 8/3/2019 Prabhakar Project

    32/62

    place of Double seven and triangular and in the very next year two soft drink

    RUSH an orangeflavoured and SPRINT as lemon flavoured of Mc-Dowell

    & Co. Ltd were introduced.

    Before some months Ananda Marketing Pvt. Ltd. was the marketing

    division of Lumbini Beverages Pvt. Ltd. But at this time, Lumbini Beverages

    Pvt. Ltd. is doing marketing with its own name.

    Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made

    tremendous move towards the introduction and development of soft drinks

    industries on the whole, and North Bihar in particular. It has made production

    of perfect hygiene and standard Soft Drink as main objective.

  • 8/3/2019 Prabhakar Project

    33/62

    ORGANIZATIONAL STRUCTURE OFLUMBINI BEVERAGES PVT. LTD.

    An ideal organizational structure facilities management and the operation

    of the enterprise and it help the organization in achieving its goal.

    In a simple term in various parts or component are interrelated or

    interconnected and this way it is the established pattern or relationship among

    various function of the organization in the established manner.

    The managing director holds the top position. At present, the managing

    director of Lumbini Beverages Pvt. Ltd. is Mr. Charan Khilani. But the overall

    policies regarding management decisions and all executives function or

    performance look after by the day to day decision and general administration as

    well as management. The MD has given the power of attorney and authority to

    director Mr. Ravi Khilani. Mr. Ravi Khilani who is well advised by the MD.

    The director Mr. Ravi Khilani looks after all functional departments that

    sales production, account, personnel and purchase. Though the manager all the

    functional departments has specially designated as head of personnel

    department.

    Every department has to report directly to the managing director and is

    responsible to his only for working in spite of this all departments is under the

    control of the director Mr. Ravi Khilani. Because he is the Chief Executive of

    the company cited earlier. The overall organizational structure can be shown as:

  • 8/3/2019 Prabhakar Project

    34/62

    OVERALL ORGANIZATIONAL STRUCTURE OF LUMBINI

    BEVERAGES PVT. LTD., HAJIPUR

    BOARD OF DIRECTOR

    MANAGING DIRECTOR

    CEO

    FINANCE PLANT P.A.M. H.R.MANAGER MANAGER MANAGER

    SHIPPINGA/C SHIFT ENGINEER COORDINATOR H.R.

    ASSISTANT EXECUTIVE

    WORKER /A/C CLERK OPERATOR H.R.ASSISTANT CLERK ASSIS.

    HOS

    T.D.M. M.E.M. M.D.M. Q.C.

    A.D.C. SENIOR TECHNICIAN M.D.C.EXECUTIV

    C.E. TECHNICIAN M.E.

  • 8/3/2019 Prabhakar Project

    35/62

    The marketing manager is in charge of all marketing activities i.e. salespromotion, publicity and advertisement, marketing study and shipping. But the

    main function of the marketing is to exercise the control over the channel ofdistribution.

    The marketing manager is assisted by sales executives, city sales executives andrural sales executives and sales executive of shipping department as follows:-

    DIRECTOR

    MANAGING DIRECTOR

    HEAD OF SALES

    T.D.M CITY SALES SALES SALES

    A.S.M EXECUTIVES EXECUTIVES SUPERVISOR

    ManagementTrainee

  • 8/3/2019 Prabhakar Project

    36/62

    CHAPTER 4

    COMPETITORS ANALYSIS

  • 8/3/2019 Prabhakar Project

    37/62

    Competitors of PepsiCo in Bihar

    1. COCO-COLA

    THE MAIN COMPETITORS..COCO-COLA

    HISTORY OF COMPETITION

    This paper will detail the historical conflict between PepsiCo and Coca Cola,and the evolution of soft-drinks industry. The paper will also attempt toanswer numerous questions, including - why concentrate producers yielded

    higher returns during 1950s, 1960s, and early 1970s; did the national launch ofPepsi challenge in 1977 change the nature of competition in the industry, howand did it harm or benefit Pepsi? Why Coca-Cola gained market share backfrom Pepsi and became more profitable in 1990s, and why Coca-Cola holdssuch a dominant position over Pepsi in the international marketplace.

    The flagship product of The Coca-Cola Company Coca-Cola wasformulated in 1886 by a pharmacist named John Pemberton. The companyexpanded rapidly through independent bottling franchises, numbering 370 in1910. Pepsi Cola was invented in 1893 by Caleb Bradham, also a pharmacist,

    and adopted Coca-Colas expansion methods. By 1910, Pepsi had a networkof 270 franchised bottlers. Unlike Coca-Cola, PepsiCo struggled and declaredbankruptcy twice - once in 1923, and again in 1932. The company reboundedin the midst of Great Depression by lowering price for its 12-ounce bottle to anickel, compared to a nickel for 6.5 ounce bottle offered by Coca-Cola. AsPepsiCo began gaining market share, Coca-Cola filed suit again PepsiCoclaiming trademark infringement in 1938. After numerous lawsuits andcounter-lawsuits, the case was ruled in favor of Pepsi in 1941. By 1940s, Pepsisurpassed Royal Crown and Dr Pepper, and only trailed Coca-Cola in terms of

    market share.With the appointment of Alfred Steele, a former Coca-Cola executive in 1950,Pepsi adopted aggressive tactics against Coca-Cola in terms of gaining marketshare. The company targeted family consumption by introducing new 26-ounce bottles, positioned itself as a product for youth or young at heart withcatchy slogans and intense commercials, and persuaded its bottlers tomodernize their plants, and improve store delivery services. The newstrategies paid off, and Pepsi narrowed Cokes lead by 2-to-1 margin. Pepsiraised stakes further in 1972 by introducing the Pepsi Challenge. The

    company ran a marketing campaign in Dallas, Texas where peopleparticipated in blind taste tests. The marketing campaign was successful, and

  • 8/3/2019 Prabhakar Project

    38/62

    Pepsi used it to show that consumers preferred Pepsi over Coca-Cola. Themarketing campaign led to sales rise in Dallas, and Pepsi eventually rolled outthe campaign nationwide. The Pepsi Challenge eventually led Pepsi to passCoke in food start sales for the first time.

    Rapidly declining market share led Coca-Cola to introduce Diet Coke in 1982.The new brand became a phenomenal success and became the third largestselling soft drink in US. Coca-Cola attempted to imitate the taste of Pepsi, andintroduced a new flagship product abandoning its 99-year old formula. Theaction led to wide scale consumer backlash, forcing the company toreintroduce its old flagship cola drink as Coke Classic. The Coke Classiceventually led to sales increase, and became the flagship product of thecompany.To expand further, both companies started offering products besides theirflagship cola drinks in 1960s, essentially abandoning their one productstrategy. Coca-Cola introduced Fanta, Sprite, and low-calorie Tab. PepsiCofollowed suit by offering Teem, Mountain Dew, and Diet Pepsi. Bothcompanies also introduced 12-ounce metal cans, and further diversified intonon-soft drink industries. In 1960s, Coca-Cola felt that the domestic demandfor soft-drinks saturated, and thus focused on overseas market instead. Pepsion the other hand, focused aggressively on the domestic market, and doubledits market shared between 1950 and 1970.In 1980s, Coca-Cola and PepsiCo attempted to reorganize their fragmented

    and independent franchised bottlers. Both companies attempted to streamlinetheir bottlers by buying up loss-making or inefficient bottlers and resellingthem to profitable franchisors. Eventually, all bottling franchisees weremerged and new bottling companies were spun-off. In 1986, Coca Colaestablished CCE, and PepsiCo established Pepsi Bottling Group. Both of thenew companies handled majority of their respective parent companies bottlingrequirements.

    During 1990s, Coca Cola became

    increasingly profitable, and gained significant market share at the expense ofPepsiCo. Its flagship product controlled a steady market share of 20% whilePepsiCo declined from 17.3% in 1990 to 14.5% in 1998. Coca-Cola had aglobal market share of 51% compared to Pepsis 21%. As consumption in US

    declined from 6% in 1980s to 3% in 1990s, Coca-Cola was able to offsetlower domestic sales with higher revenues from abroad. As PepsiCoconcentrated on the domestic market, its margins declined due to changingtrend within the US economy. Also Coca-Cola entered foreign markets withlarge and experience bottlers in their respective companies and held a minority

    stake, and concentrated on streamlining local bottling networks. Pepsi on the

  • 8/3/2019 Prabhakar Project

    39/62

    other hand entered foreign markets through joint ventures, and many a timesshared only 50% revenue on sales

    T h e Coca-Cola Company

    The Coca-Cola Company exists to benefit and refresh everyone it touches.

    Founded in 1886, our Company is the world's leading manufacturer, marketer, and

    distributor of nonalcoholic beverage concentrates and syrups, used to produce

    nearly 400 beverage brands. Our corporate headquarters are in Atlanta, with local

    operations in over 200 countries around the world.

    The product range of COCA-COLA Consists of: -

    COLA ORANGE LIME LIME MANGO M.WATER

    COKE, FANTA LIMCA SPRITE, MAAZA KINLEY

    THUMS U P SPRITE

    1. Coke

    200ml, 300ml, 500ml, 1.5lt, 2l, 330ml(can)

    2. Thumps up

    200ml, 300ml, 500ml, 1.5lt, 2l, 330ml(can)

    3. Limca

    200ml, 300ml, 500ml, 1.5lt, 330ml(can)

    4. Fanta

    200ml, 300ml, 500ml, 1.5lt, 330ml(can)

    5. Sprite

    200ml, 300ml, 500ml, 1.5lt, 2l, 330ml(can)

    6. Maaza

    300ml, 500ml, 1lt

    7. Kinley

    500ml

  • 8/3/2019 Prabhakar Project

    40/62

    CHAPTER 5

    RESEARCH METHODOLOGY

    RESEARCH DESIGN

    SOURCES OF DATA

    DATA COLLECTION TOOLS

    SAMPLING DESIGN

  • 8/3/2019 Prabhakar Project

    41/62

    Research Design-The research design is descriptive as it intends to figure

    out the existing market presence of Pepsi as against its competitors .

    Sample- Retailers of Patna being visited by PSI.

    Sample Size- 80 outlets at different locality of Patna Station.

    The research plan that was designed to enable me in collecting the required

    information is shown below.

    1. Data source: Secondary data, Primary data

    2. Research Instruments: Questionnaire

    3. Contact Method: Direct Interaction

    Data Source:

    SECONDARY DATA

    Secondary data consists of information that already exists somewhere, havingbeen collected for another purpose.The secondary data source that was utilized by me in the project report were asfollows.

    1.Internal Sources:2.External Sources;

    PRIMARY SOURCE

    Direct interaction with the retailers In Patna.

    Data collection tool- Questionnaire

    Sampling design- Retailers dealing with Beverage product.

  • 8/3/2019 Prabhakar Project

    42/62

    CHAPTER 6

    DATA ANALYSIS AND INTERPRETATION

  • 8/3/2019 Prabhakar Project

    43/62

    DATA INTERPRETATIONSAMPLE SIZE 80 RETAILERS

    LOCATION - Patna station

    DATA INTERPRETATION

    1. Availability of PepsiCo

    CO. NO. OF OUTLETS(80) PERCENTAGE

    PEPSICO 42 55%

    Analysis the above graph and table

    From the above graph and table it is clear that the availability of PepsiCo is55% .

    2. Availability of Coco-Cola

    CO. NO. OF OUTLETS(80) PERCENTAGE

    COCO-COLA 72 90%

    55%

    45%

    AVAILABILITY OF PEPSI

    YES

    NO

  • 8/3/2019 Prabhakar Project

    44/62

    Analysis the above graph and table

    From the above graph and table it is clear that the availability of its competitorCoco-Cola is 90%.

    3. Availability of both Company products in total outlet.

    CO. NO. OF OUTLETS(80) PERCENTAGE

    PEPSICO&COCO-COLA 35 44%

    Analysis the above graph and table

    From the above graph and table it is clear that the together availability of both

    company is 44%(Approx) in total outlets in this area.

    90%

    10%

    AVAILABILITY OF COCO-COLA

    YES

    NO

    44%46%

    AVAILABILITY OF BOTH CO'S.

    YES

    NO

  • 8/3/2019 Prabhakar Project

    45/62

    4. Availability of PepsiCo Brand.CO Average Percentage

    PEPSICO 3 46%

    Brand consideration for PCI- Pepsi, 7up, M Dew, Slice, Mirinda

    Analysis the above graph and table

    From the above graph and table it is clear that the Brand availability ofPepsiCo is 46%(Approx).

    5. Availability of Competitor Brand.CO Average Percentage

    COCO-COLA 5 83%

    Brand consideration for coke- Coco-cola, Thumps up, Limca, Mazza, Fanta, SpriteAnalysis the above graph and table

    From the above graph and table it is clear that the Brand availability of Coco-Cola is 83%(Approx).

    46%

    54%

    BRAND AVAILABILITY OF PEPSICO

    YES

    NO

    83%

    17%

    BRAND AVAILABILITY OF COCO-COLA

    YES

    NO

  • 8/3/2019 Prabhakar Project

    46/62

    6. Availability of Brand Channel wiseChannel No of Outlets Brands(Average)

    PCI COKE

    Grossery 10 2.40 5.5

    Eatry 32 3.28 4.16

    Convenience 37 2.86 4.89

    Analysis the above graph and table

    From the above graph and table it is clear that the average Brand availability

    channel wise of PepsiCo is( G-2, E-,C-3) and Coco-Cola is (G-5, E-4, C-5).

    7. Availability of SKUS & Chilled StocksCO Average(SKUS) Percentage

    PEPSICO 3 31%

    Analysis the above graph and table

    From the above graph and table it is clear that the availability of SKUS andChilled Stocks PepsiCo is 31%(Approx).

    2.4

    3.28

    2.86

    5.5

    4.16

    4.89

    0

    1

    2

    3

    4

    5

    6

    Grossery Eatry Convenience

    PCI

    COKE

    31%

    69%

    AVAILABILITY OF PEPSICO SKU'S

    YES

    NO

  • 8/3/2019 Prabhakar Project

    47/62

    8. Availability of SKUS & Chilled Stocks(its competitors)CO Average(SKUS) Percentage

    COCO-COLA 5 86%

    Analysis the above graph and table

    From the above graph and table it is clear that the individual availability ofSKUS and Chilled Stocksof Coco-Cola is 86%(Approx).

    9. Availability of SKUS & Chilled Stocks Channel WiseChannel No of Outlets SKUS(Average)

    PCI COKE

    Grossery 10 2.3 5.5

    Eatry 32 2.5 5.1

    Convenience 37 2.7 5.4

    Analysis the above graph and table

    From the above graph and table it is clear that the average availability channel

    wise of PepsiCo is(G-2,E-3, C-3) and Coco-Cola is(G-6, E5, C-6).

    86%

    14%

    AVAILABILITY OF COCO-COLA SKU'S

    YES

    NO

    2.3

    2.52.7

    5.5

    5.14.89

    0

    1

    2

    3

    4

    5

    6

    Grossery Eatry Convenience

    PCI

    COKE

  • 8/3/2019 Prabhakar Project

    48/62

  • 8/3/2019 Prabhakar Project

    49/62

  • 8/3/2019 Prabhakar Project

    50/62

    STRENGTHS Brand name PEPSICO

    PEPSICO has well built image of excellence and innovation

    Range of product.

    Loyalty of customers.

    Quality of the product

    LUMBINI drinks are franchisee owned Bottle Operation (FOBO) of

    worlds most famous soft drinks giant PepsiCo.

    LUMBINI drinks uses state of the art and fully automatic machines and

    technology for the product and bottling of soft drinks.

    WEAKNESSES

    o In adequate information to the retailers about companys sale offers.

    o Distribution channel is not efficient.

    o Delay in delivery of products causes revenue loss.

    o The present supply is not sufficient to fulfill the demand, which

    may be trapped

  • 8/3/2019 Prabhakar Project

    51/62

    OPPORTUNITIES

    LBPL makes the buying process more convenient of efficient

    (It provides the Pepsi products at required places i.e. direct to

    distributors and to retailers through distributors).

    Market growth.

    Known brand.

    It takes return the leakage, burst bottles etc.

    The executive of company meet the need for more information and

    advice to distributer/retailer/customer.

    THREATS

    COCO-COLA strong presence in this segment.

    Linc co. coming with new range of pen and pencil.

    COCO-COLA has better marketing strategy and distribution channel.

    Coca-cola is now spending more and more to boost up the sale, so Lumbini

    drinks should also have to go a head and think about it.

  • 8/3/2019 Prabhakar Project

    52/62

    CHAPTER 7

    FINDINGS

  • 8/3/2019 Prabhakar Project

    53/62

    FINDINGS

    1.After visiting 80 outlets in my area I found that the availability of pepsi is

    55% and availability of coco-cola is 91%.

    2.Average availability of brands of PepsiCo is 3in5 and Coco-Cola is 5 in6 in

    this area.

    3.Majority of the retailers are selling coco-cola products.

    4.Penetration of PepsiCo products should be increased. Specially in sub

    urban areas.

    5.The service by PepsiCo to the outlets are satisfactory in major areas but not

    in the entered area.

    6.Retailers order every brands but he dont get on time.

    7.There is need of some replacement of chiller in this area.

    8.Coca-cola has covered more market share because they provide better

    supply, and easily provided refrigerator to the retailer.

    9. When they need pet bottles (7-up, Miranda) the distributor has not provided at

    that time.

    10.Some outlets were complaining about the racks and freeze which is not given

    to them by distributor but some place there is good response. So more or less

    there is a good response of retailer towards Pepsi distribution.

  • 8/3/2019 Prabhakar Project

    54/62

    CHAPTER 8

    RECOMMENDATIONS

  • 8/3/2019 Prabhakar Project

    55/62

    RECOMMENDATIONS First of all company will provide all its dealers and retailers to all sort of

    promotion equipment such as glow sign board, banner, rack, freeze, etc. in

    time so that they increase their sales which is benefited both retailer as well as

    company.

    The distribution channels need to be improving so that retailer/dealer will

    get soft drinks at time when they need.

    More improvement is required in the distribution network in the outskirt and

    in the remote areas, because in the peak seasons like summer the small dealers

    are taking goods twice or thrice and in between if the distributors could not

    supply them, the competitors will get the opportunities to supply the goods.

    There should be more focus on 100% avaibility so that Pepsi dont lose sales

    & market share.

    All mixed outlets which stock multiple products should be transferred to

    exclusive Pepsi outlets

    Supply of goods should be regular at all the routes.

    Dont miss any outlets in any area.

    Always have a good rapport with the retailers.

    Frequency of visit should be increase.

    The company should start survey time to time to know the grievances of

    retailer as well as consumers.

  • 8/3/2019 Prabhakar Project

    56/62

    Some times absence of stocks annoys retailer and consumers, so company

    should keep a watch to the availability of brand.

    Todays every type of channel want to keep soft-drink so if we provide

    them. Obviously increase market share of PepsiCo.

    Check whether the outlet require any signage.

    The company should cover those market which are not covered at yet to

    increase the market share

    There must be proper maintenance of refrigerator so that retailer shall chill

    drinks easily

    No. of vehicles for delivery of goods should be increased in no for proper

    catering in the entire area of Patna effectively and efficiently.

  • 8/3/2019 Prabhakar Project

    57/62

    REFLECTIONS

    The survey was conducted in Patna with sole objective to understand themarket, market effectiveness distribution network and competitors activity forPepsiCo products and providing the data interpreted to PepsiCo.

    I extend my thanks to all retailers who extended their support in providingme the extensive data without which the report had not been revealing.

    I also thank the superior of the organization who extended their time to timeguidelines and encouragement and helped me to conduct the survey in a positivenote.

    The data thus collected shall remain a functional guideline to increase ourmarket penetration, product positioning, pricing policy consideration andservice enhancement.

    PepsiCo is India produces healthy financial rewards to investors as itprovides opportunities for growth and enrichment to employees, business

    partners and the communities in which it operate.

    I once again thank Lumbini beverage Pvt. Ltd for providing me thisopportunity to conduct a survey which I could do with best of my enthusiasmand ability.

  • 8/3/2019 Prabhakar Project

    58/62

    APPENDIX

    DAILY CALL SHEET

    QUESTIONNAIRE BIBLIOGRAPHY

  • 8/3/2019 Prabhakar Project

    59/62

    DAILY CALL SHEET

    ROUTE-

    DAY- DATE-PEPSICO OF INDIA

    DAILY CALLSHEET

    AREA-

    DAY- DATE-

    S.

    NO

    OUTLET

    NAME AREA

    CHANNEL CHILLER

    NO OF

    BRANDS

    CHILLING

    CAPACITY

    CHILLED

    STOCK

    SERVICE

    INFRASTRUCTURE

    G/E/C/M PCI C PCI C PCI COKE PCI C PCI C PCI C

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    TOTAL

    AVERAGE

    PERCENTAGE

    No ofsku

  • 8/3/2019 Prabhakar Project

    60/62

    QUESTIONNAIRE

    Outlet name :

    Location :Date : phone no:

    1. Is the service of Pepsi available in your outlet?(a)Yes (b) No

    2. Which type of outlet?(a)Grocery (b) Convenience (c) Eatery (D) Modern Trade

    3. Which brand of soft drinks you deal in?(a)Pepsi (b) Coco-ColaBoth (d) Others

    4.How many skus are available in your outlet?(a)1 (b) 2 (c) 3 (d) 4 (e) 5 (f) 6 (g) 7 (h) 8

    5. Which type of PepsiCo brands available you have?

    (a)Pepsi (b) 7up (c) Slice(d) Mirinda (e) M Dew (f) Nimbus

    6. Are you satisfied with the supply of PepsiCo?(a) Yes (b) No

    7. Which brand of cola provides you better facility?(a) Pepsi (b) Coco-Cola (c) Both

    8. How many SKUs you chilled?(a) 2 (b) 3 (c) 4 (d) 5 (e) 6 (f) 7 (g) 8

    9. Which companys chiller you have?(a)Pepsi (b) Coco-Cola Own (d) Both

    10. What is the capacity of your chiller?(a) 110 (b) 280 (c) 320 (d) 400 (e) 600 (f) 1200

  • 8/3/2019 Prabhakar Project

    61/62

    11. When a customer comes to your shop which brand of soft drinks does

    he/she demands? (Rank them)(a) Pepsi (b) Coca Cola (c) Others

    12. What is the position delivery of Pepsi products?(a) Very Good (b) Good(c) Bad (d) Worse

    13. Which company Visi-Cooler do you have?(a) Pepsi (b) Coca Cola

    (c) Both (d) Own

    14. Which company gives better service?(a) PepsiCo (b) Coco-Cola

    15. Please give any suggestion for improvement regarding distribution, brand,bottling etc...

    ...........

  • 8/3/2019 Prabhakar Project

    62/62

    BIBLIOGRAPHY

    A. BOOKS:

    1. PHILIP KOTLER MARKETING MANAGEMENT,ANALYSIS, PLANNING ANDCONTROL (8th EDITIONPUBLICATIONPRENTICE

    HALL, PUBLISHED- 1994)

    2. DENNIS ADCOCK MARKETING PRINCIPALES &PRACTICE (SECOND EDITION,PUBLISHED1995,PITAM PUBLICATION)

    3. THERESE.L.BAKER DOING SOCIAL RESEARCH (2ndEDITION, PUBLISHED1995,MCGRAW HILLINTERNATIONAL EDITIONS)

    4. C.R.Kothari, 2007 "Resea rch Methodology", New AgeInternational Publishers.

    B. MAGAZINES:

    1. BUSINEES WORLD2. BUSINESS TODAY

    C. JOURNALS:

    1. TIMES OF INDIA2. BUSINESS STANDARDS.

    D. WEBSITE:

    1. www.google.com

    http://www.google.com/http://www.google.com/http://www.google.com/