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A

PROJECT REPORT

ON

Advertising Effectiveness on Consumer Behavior

With special reference to Pepsi

Submitted for partial fulfillment of requirement for the award of degree

Of

Bachelor of Business Administration

Of

PUNJAB TECHNICAL UNIVERSITY, JALANDHAR

Session 2010-13

Supervision by Submitted by

Mr.Roshan kumar Puneet Gupta

(Lect. GNA-IMT) 10-25

BBA 6th

GNA-Institute of Management & Technology

Phagwara, Punjab

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Declaration

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled

Advertising Effectiveness on Consumer Behavior With special reference to Pepsi is based

my own work carried out during the course of my study under the supervision of Mr. Roshan

Kumar

I assert that the statements made and conclusions drawn are an outcome of the project work. I

further declare that to the best of my knowledge and belief that the project report does not

contain any part of any work which has been submitted for the award of any other

degree/diploma/certificate in this University or any other University.

__________________

(Signature of the Candidate)

Puneet Gupta

10-25

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CERTIFICATE BY GUIDE

This to certify that the report of the project submitted is the outcome of the project work entitled

Advertising Effectiveness on Consumer Behavior With special reference to Pepsi carried out

by Puneet Gupta bearing Roll No 10-25 & Enrollment No.:.. Carried by under my

guidance and supervision for the award of Degree in Bachelor of Business Administration of

Punjab Technical University, Jalandhar, Punjab.

To the best of the my knowledge the report

i) Embodies the work of the candidate him/herself,ii) Has duly been completed,iii) Fulfils the requirement of the ordinance relating to the BBA degree of the University

and

iv) Is up to the desired standard for the purpose of which is submitted.

_______________________

(Signature of the Guide)

Mr.Roshan Kumar

Lect. GNA IMT

GNA-IMT Phagwara,Punjab

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ACKNOWLEDGEMENT

I am thankful to many people whose timely help and guidance has helped us to conduct thisresearch successfully. I would also like to express my thankfulness to Prof. Roshan Kumar

Faculty of GNA-IMT Phagwara, for giving me an opportunity to pursue this project.

I also wish to thank all those respondents who were patient enough in giving answer to the

questionnaire.

Finally, I would like to extend my grateful thanks to all my friends and Faculty members GNA-IMT Phagwara whose assistance has a lot to me personally for the completion of this research.

____________________

(Signature of the student)

Puneet Gupta

10-25

BBA 6th

Semester

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TABLE OF CONTENTS

Chapter 1

Introduction1.1 Introduction

1.2 History

1.3 Pepsi Headquartar

1.4 Board of Directors

1.5 Mission

1.6 Vision

1.7 Pepsi Objectives

1.8 Background and Objectives of Research

1.9 Method Use in this Research

1.10 Conclusion

Chapter 2

Literature Review

2.1 Introduction2.2 Pepsi in India

2.3 Beverages

2.4 Production Process

2.5 Consumer Behavior

2.5.1 Culture

2.6 Branding

2.7 Conclusion

Chapter 3

Research Methodology

3.1 Introduction

3.2 Marketing Research

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3.2.1 Primary and Secondary Date-

Chapter 4

Data Analysis and Finding

4.1 Introduction

4.2 Marketing Strategy

4.2.1 Geographic

4.2.2 Demographic

4.2.3 Psychographic

4.2.4 Behavioral

4.3 4Ps and 4Cs

4.3.1 Products

4.3.2 Prices

4.3.3 Places

4.3.4 Promotion

4.4 4Cs

4.4.1 Consumer

4.4.2 Cost

4.4.3 Convenience

4.4.4 Communication

4.5 Market Share21

Chapter 5

5.1 Findings

5.2 Suggestions5.3 Conclusion

5.4 Bibliography

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ChapterI

Introduction

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Chapter 1

INTRODUCTION

1.1 INTRODUCTION

Pepsi-Cola was first made in New Bern, North Carolina in the United States in the early 1890s

by pharmacist Caleb Bradham. On August 28, 1898 , "Brad's drink" was changed to "Pepsi-Cola" and later trademarked onJune16,1903 Caleb Bradham bought the name"Pep Kola" from

a local competitor and changed it to Pepsi-Cola. "Pepsi-Cola" is an anagram for"Episcopal" - a

large church across the street From Bradham's drugstore. Caleb Bradham and his customers

simply thought the name Sounded well or the fact that the drink had some kind of"pep" in itbecause it was a carbonated drink they gave the name pepsi.

As Pepsi was initially intended to cure stomach pains, many believe Bradham coined the

Name Pepsi from either the condition dyspepsia (stomachache or indigestion) or the possible

One-time use of pepsin root as an ingredient (often used to treat upset stomachs). It was madeOf carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the original recipe

Included the enzyme pepsin is disputed.

1.2 HISTORY

Pepsi is a world leader in convenient snacks, foods and beverages. Its revenue is more than 39

billion Dollars and over 185, 000 employees. The company consists of Pepsi Co Americas Foods

(PAF), Pepsi Co Americas Beverages (PAB) and Pepsi Co International (PI) Pepsi Co AmericasFoods includes all Latin America Food and snacks businesses and all business in Mexico. Pepsi

Co America Beverages includes Pepsi Co Beverages all North America and all Latin AmericanBeverage Businesses. Pepsi Co International includes in the United Kingdom, Europe, Africa

Middle East and Asia. Pepsi Co Brands are available in 200 Countries .Some of the Pepsi CoBrands names are more than 100 year old but the corporation is relative young. Pepsi Co was

founded in 1965. Pepsi and Coca cola merge with each other and the name of the product is

Pepsi Cola. Pepsi Co merged with the Quaker oats Company in 2001.

1.3 PEPSI HEADQUARTER

Pepsi Headquarter is located in New York. The Seven Building Headquarter is designed by

Edward Durrell Stone.

1.4 BOARD OF DIRECTORS

PepsiCos business strategy and affairs are overseen by the Board of Directors,which is comprised of two executive directors and ten independent outside directors.

Only independent outside directors make up our three standing Board Committees,

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Board of Directors (left to right): Victor J. Dzau, Arthur C. Martinez, Sharon Percy Rockefeller,

Daniel Vasella, Alberto Ibargen, Lloyd G. Trotter, Dina Dublon, Michael D. White, Ray L.

Hunt, Indra K. Nooyi, Ian M. Cook, James J. Schiro

1.5 MISSION

"To be the world's premier consumer Products Company focused on convenientfoods and beverages. We seek to produce healthy financial rewards to investors as

we provide opportunities for growth and enrichment to our employees, our business

partners and the communities in which we operate. And in everything we do, westrive for honesty, fairness and integrity."

1.6 Vision

Pepsi cos responsibility is to continually improve all aspects of the world in which we

Operate environment, social, economic-creating a better tomorrow then today. We believeSustainability lives at the instruction of public and corporate interest. It encompasses citizens

nd corporate social responsibility, which are about doing the right things for the society and

f or the business. It encompasses the heath of the company, which is about fulfilling our

Mission of creating financial rewards and growth. We have articulated what we stand for andthe core values we are committed to support.

1.7 OBJECTIVES

The Objectives that the Pepsi Company wishes to achieve is that it wants to remain andcontinue to be the best or number one beverage company in India. As Pepsi is already the

number one beverage company in India but it has to maintain its position power and

status to in order to achieve their target market 1.8 Background and Objectives of theResearch How Pepsi Industry apply 4Ps and 4Cs and how they deal with customer and how

they introduced its product in the market. The main theme of this research is related to all

Marketing Operation. Main objective of the research is to know SWOT analysis of Pepsi. I chosethis industry because it has strong marketing strategy. My Objectives is to learn about

Pepsis marketing management and relationship with its customers. My main objective is

how a marketer handled all the marketing Operations.

1.9 Method use in this Research

W e adopted the following methods in this research

Visit Interviews Questionnaire Internet

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1.10 Conclusion

In this chapter we study the history of Pepsi and also studying headquarters of Pepsi. We

mention the objectives and background of the research. That what is Pepsi how it makes. I

mention the method of research and also the aim of the research, in this chapter.

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Chapter 2

L iterature Review

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CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

In this chapter the data which we collect from using Internet, survey,

2.2 Pepsi in India

PepsiCo established its business operations in India in 1989 and has grown to become one of

The countrys leading food and beverage companies. One of the largest multinational

Investors in the country, PepsiCo has established a business which aims to serve the long

term dynamic needs of consumers in India.

PepsiCo established it's business operations in India in 1989

Invested more than USD 1 Billion since inception Well known and loved global brands that delight and nourish consumers It provides direct and indirect employment to 150,000 people in India It has more than 41 bottling plants in India, of which 13 are company owned & 28 franchisee owned 3 State-of-the-art food plants in Punjab, Maharashtra and West Bengal

2.3 BEVERAGES

PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP,

Nimbooz, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsihydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks

Gatorade, Tropicana100% fruit juices, and juice based drinks Tropicana Nectars,

Tropicana Twister and Slice. Local brands Lehar Evervess Soda, Dukes Lemonade andMangola add to the diverse range of brands.

2.4 Production Process

PepsiCo Beverages produced the large number of product in a day. The production

criteria are on demand as well as the market situation. They produced 35, 000 cane perhour and 20, 000 disposal bottles per hour and the machinery run 22 hour in a day.

2.5 Consumer Behavior

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Consumer behavior is a key success of any Company. Consumer behavior is depending

upon culture, value, traditions. When marketers offer unique benefits in a new product theyencourage consumer to subtype. If successful marketer established a dominant position in a

new sub category. When Pepsi Co introduced a new product in a market it will change the

consumer behavior. When Pepsi attempted to introduce another category breakfastcolas by introduced Pepsi AM, it was less successful.

2.5.1 Culture

The soft drinks market in India enjoys dynamic growth in both volume and value terms.Carbonated drinks have become part of the culture in India and multinational companies have

maintained standards over the years to provide the nation with high-quality drinks. Rural areas of

India have driven sales of carbonated drinks to new heights as more than 60 percent of thepopulation resides in rural areas and young consumers are more attracted to advertising. Pepsi is

the most popular and leader brand in the India market and is consumed by children and adults

alike. Pepsi is a responsible corporate brand of India and

have contributed a lot to the economy.

2.6 Branding

There are a number of branding strategies Generic Brand Strategy, Individual Brand

Strategy, Family Brand Strategy, Manufacturing's Brand Strategy, Private Brand Strategy

and Hybrid Brand Strategy. Individual Brand Strategy is Marinda, 7up and Pepsi etc.they may presented as different line but it operate as under the name of Pepsi.

2.7 Conclusion

In this chapter we study the establishment of Pepsi Industries in India. ThePepsiCo India Pvt. Ltd is very famous name in Industries. In this chapter we

Know a branding Strategy of Pepsi and also studying the Consumers behavior,

Culture and value of the Consumers in India.

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Chapter 3

Research Methodology

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Chapter 3

RESEARCH METHODOLOGY

3.1 Marketing research

W hen attempting to implement a new market plan a business must address to its

target marketing and conduct the reverent information to insure the new marketing

plan. When conduct a marketing research the business must 1 defined the problemand then gathering the appropriate information to solve these problem. There are

three types of information a business can gather to solve its problems.

1. Exploratory Research

In this research the business clarifies the problem and the find the ways to address it.

2. Descriptive Research

In this research the business measure and describe the product characteristic ofthe target market.

3. Causal research

In this research the business used to test the hypothesis about the cause

and effect relationship.Pepsi through its market research has addressed all three types of

research to definethe problem raised by shareholder and gathered information to serve their needs.

3.3 primary and secondary Data

3.3.1 Primary Data

W e collect the primary data by using the following methods :

Interviewing Questioners Visit

3.3.3 Secondary Data

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Secondary data are those data which is already given. We collect the secondary

data by using these Methods

Internet TV Commercials Broachers Flyer

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Chapter 4

Data Analysis

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Chapter 4

DATA ANALYSIS AND FINDING

4.2 MARKETING STRATEGY

4.2.1 Geographic

world Region. Asia

Country India

City.. All Major city of India

Climate... Hot and Dry

4.2.2 Demographic

Age 14-30+

Gender...Male, Female

Marital Status Married ,Unmarried

Family Size.. 1-2, 3-4, 5+

Education . ..School, College, universities

Occupation.. For Middle class to Upper Class

Income . Rs. 10, 000 +

Nationality Indian

4.2.3 Psychographic

Social Class .. Middle Class, Upper Class

.2.4 Behavioral

Occasion... Party, birthday and regular

Position Status Strong

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Benefits Quality, Taste

4.3 4Ps and 4Cs:

PRODUCT CONSUMER

PRICE COST

PLACE CONVENNIENCE

PROMOTION COMMUNICATION

4.3.1 Products

Pepsi #

Diet Pepsi #

7 Up #

Aquafina#

Mirinda (Orange & Apple)#

Mountain dew#

Nimbooz#

Aquafina #

Slice#

4.3.2 Prices

Pepsi has adopted a market pentration price at the time when it was introduced.

Coca cola covered the large market in India but now the price of Pepsi cola is same

as of its competitors

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300 ml bottle... Rs. 15 #

250 ml bottle..Rs. 10#

My Can(2500 ml)...Rs.15#

Can(330 ml)...Rs.20#

1 liter (not disposable)..Rs 32 #

1.5 liter (Super Pack)...Rs. 42 #

2.00 liter (Jumbo Pack)Rs. 50 #

4.3.3 Places

Pepsi cola is available in more than 191 countries. Pepsi has 730 plants working

correctly around the world and in USA and Canada 200 plants are working there rest530 are working in other countries of the world as well as working in India. 4.3.4 Promotion

Pepsi does its promotion through media; electronic media as well as print media through

flyers, by sponsoring cricket matches and in many other places. Promotion is also done

through print media e.g. newspapers are design of Pepsi can. The first of many

new designs of Pepsi were released in 2007.

The Pepsi have signed some agreements with a very strong and expandedretailers such as Pizza hut and KFC when you go to Pizza hut or KFC you will find

only the Pepsi products and nor its competitors products. These agreements are

based on the Incentives that Pepsi offers to these retailers.

Pepsi has continued using product endorsement by using TV Actors/ Models andcricketers in order to promote their Products.

4.4 4Cs

4.4.2 Cost

Cost is the total expenses incurred in the production of pepsi\

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4.4.3 Convenience

It has most effective distribution system among all the soft drinks. It is easilyavailable everywhere even in cities or a village. You can easily get it. Special

refrigerators are placed at each and every shop or outlet.

4.4.4 Communication

Internet

Phone Call #

Surveys. #

4.6 Market share

Present market share in Beverage industry is 60.28%

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Chapter 5

SWOT Analysis and Pepsi

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SWOT ANALYSIS AND PEPSI

5.1 SWOT ANALYSIS

5.1.1 Strengths

The Pepsi image is displayed on T-shirt, Cap and Bat this extremely recognizable branding is

one of the greatest strengths. Pepsi bottling system is one of their greatest strengths.

5.1.2 Weaknesses

Pepsi has recently reported some declines in unit case volume in Indonesia andThailand due to reduce the consumer Purchasing power. Pepsi has effects on the

teeth which is an issue for health care.

5.1.3 Opportunities

Packing Changes is effected sales and industry positioning but in general, the public

has tended not to be affected by new product. Pepsi's bottling system also allows thecompany to take advantage of infinite growth opportunities around the world.

5.1.4 Threats

Consumer buying power is represents a key threats in the industry. The competition

between Pepsi and Coke has produce a very slow moving industry in which

management must continuously respond to the changing attitudes and demand for

their of face losing market share to competition, furthermore consumer can easilyswitch to other beverage with a little cost.

5.2 Ingredients

Carbonated water.

Sugar

High fructose corn syrup.

Color (Caramel)

Phosphoric acid.

Caffeine.

Emulsifier #

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5.3 MARKET DESCRIPTION

Pepsi has become the largest selling soft drink in the world. It has liked by the people

of all ages belonging to different field of life belonging different cast religion.A recent survey shows about the 90% of the population of the world use Pepsi. Itavailable in the market in different Flavor and different variety.

5.5 WHAT IS IN PEPSI?

5.6 Competitor24

Pepsi is the largest beverage company in India with 65% market shares. In 1994 the

Coca cola Company reduced the price to Rs.5 and Pepsi has to reduce the price inorder to compete. In doing this both companies had bear a huge losses. Coke had a

loss of 9 million whereas the Pepsi bearing a loss of 14 million.

The following are some competitors of the Pepsi

Coca cola Thumps Up Gladiators Nestle(only in mineral water)

5.7 Distribution Review

Pepsi applied two methods to distribute their products.

5.8.1 Direct Distribution:

Pepsi Direct distribute their Product to Whole Sellers, Restaurants, Hotels, Pizza hut, KFC, Saver Food and Metro etc. Export Parties

5.8.2 Indirect Distribution

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Through Base market Distributions #

Through Outstation Distributors #25

5.9 Placing Distribution

The distribution system of Pepsi Cola Company is organized as follows

There are branches in every city of India and these branches are controlled by the headbranches which is located in Mumbai. There is some Sales Manager and sales executives.

The sales executive is also known as Territory Development Manager (TDM) who is

responsible about the trucks. Then further down is the sales officer who has a wide authority and

then there is a sales supervisor who looks after the trucks and finally salesman. Eachsales manager handles 60 trucks. The distribution agencies are formed in every large city of

India. The trucks of the company supplies products to these distribution agencies and thenthese agent further supplies these products to the retailers.

Before delivering the products some certain guiding Principles are followed by Pepsi Co

Applicant must have 20-25 vehicles (Depending on the Area). # Applicant must have 20, 000 Cases of Empty Bottles. # Applicant must Deposit Rs. 1, 000, 000 as a security. #

5.10 Soft drinks in India

There are various kind of soft drink used in India Such as

o Pepsio Coca Colao Tropicanao LMNo Saint juiceo XLS

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Chapter 6

Finding Suggestions and Conclusion

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Finding

1. Pepsi gives lots of stress on marketing its product in the market.2. Pepsi provides many number of Beverages products in almost all region in

INDIA.3. It spends a lot of amount on advertising.4. Coca-cola is biggest competitor of Pepsi

Suggestions

1. It should reduce the prices of the product to penetrate in the market.2.New products should be launched to give competition to the new entrants.3. Try to reduce the cost of production of the products of Pepsi.

CONCLUSION

Pepsi has a long-standing commitment to protecting the consumer whose trust and confidence in

its products in the bedrock of its success. In order to ensure that Consumers stay inform about theglobal quality of all Pepsi product sold in the world, Pepsi product carry a quality assurance seal

on them. Pepsi commitment is to deliver sustained growth, through empowered people, acting

with responsibility and building trust.

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BIBLIOGRAPHY

Books

1. Marketing strategy by kotter2. Research Methodology by Smith.

Websites

1. Wikepedia.orgic2. Pepsi iNDIA.in3. Pepsi.co.in