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PROJECT REPORT
ON
Comparatitive study of mango flavor on Pepsi and coca
cola
atM/s Varun Beverages Limited
SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE
DEGREE OF PGDM
Submitted to Submitted byProf. SMIRTI BAJPAI Shashi shekhar pratapFaculty of MIM PGDM-15th
Roll No. -14046Session- (2009-2010)
MAHARISHI INSTITUTE OF MANAGEMENT
Maharishi Nagar, Noida-Dadri Road- 201304
Tel: (0120) 2567603 Fax : 0120-2562652Website:maharishiinstituteofmanagement.com
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PREFACE
Today the Soft Drinks market is flooded with different brands of soft drink resulting into
fierce competition. The companies have to adopt different marketing strategies in order to
compete in this era to cope in the prevailing situation. In order the companies always strive to
successfully introduce their products in the market with innovative ideas and pioneering strategies.
As soon as the Indian Economy opened up the economy, the cola giants, PEPSI &
COCA-COLA jumped in and then conquered the Indian soft drinks market with their aggressive
and ever changing strategies. They attacked almost all segments of the Indian consumer market
that has now resulted into multiphase expansion of the Indian soft drink market.
The amount of investment made by these companies in this short duration in India speaks
for itself. Both Coke as well as Pepsi has already made an investment of more than US$
700 million alone in the Indian market. Although these cola giants have worldwide presence but
their focus in the Indian market is phenomenal. With its effective and efficient distribution
network it is covering the need of entire population of the country.
With ever changing customer tastes and preferences, it is very difficult to develop an
effective programme. Proper sales promotion strategies should be set up in accordance to the
market location. Top-notch service and regular feedback also helps in keeping up the pace.
.
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ACKNOWLEDGEMENT
It was a great experience to be attached to such a reputed organization, which is a soft
drinks market leader in India. I express my deep sense of gratitude to M/s VARUN
BEVERAGES LIMITED (franchisee of Pepsi) for providing me an opportunity to
complete my summer training project.
I would like to thank Mr. H.S. Rana (Marketing Development Coordinator), Mr.
Hitesh Sardana (Account Development Coordinator), Mr. Prashant Sharma
(Customer Executive) and Mr. Praveen Kumar (Marketing Executive) for their
constant support and providing the itinerary at all stages of the project.
I also offer my sincere gratitude to DIRECTOR . Dr .K.B.Mehra and prof. smriti
bajpai Faculty ofMaharishi Institute of Management, for his useful suggestions, help
and support.
With regards,
SHASHI SHEKHAR PRATAP
PGDM -15Roll no. 15O46
Session -2008-10
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CONTENTS
PARTICULARS PAGE NO.
Company Profile
Introduction of PepsiCo
Suggestions
Conclusion
Bibliography
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EXECUTIVE SUMMARY
This project was undertaken for a period of eight weeks at M/s Varun Beverages Ltd (a Franchisee
of PepsiCo) for the partial fulfillment of the PGDM (Post Graduate Diploma in Management)
course from Maharishi Institute of Management, Noida. The objective of the project was to find out
what are the constraints and adherence in applying the Visicooler plannogram and how to tackle
them. To make retailers aware about the PepsiCo VisicoolerPlannogram and ensure that they do
follow it regularly to lure more customers and to ultimately increase its market share and their profit
(by 30%). To complete this project, a survey was conducted on retailers with the help of a
questionnaire in the region of East Delhi. The sample size was decided by Mr. H.S. Rana, which was
of 150 retailers. All retailers selected in the sample had been asked about PepsiCo Visicooler
Plannogram. After the survey, it was observed that PepsiCoVisicooler Plannogram has a vital
role in increasing sales of the company and that the same would directly have an impact on the market
share of the company. In East Delhi region, a lot of sales promotion activities had been already
initiated by the company. Among these activities, PepsiCo Visicooler Plannogram was an
absolutely new concept and it had an innovative way to attract both retailers & customers.
The basic purpose of the sales promotion activities is to enhance the demand of products by
temporarily increasing their value to the purchaser. A major area of improvement that the company
should look at is retailers awareness about the new Visicooler Plannogram. The same came to
light during the survey, wherein it was observed that most of the retailers do not have proper
information even about retailer centric promotions (POG) being offered by the company. The
Customer Executives, Salesman and Merchandiser of the company need to act as a bridge between
retailers and company. They should be properly equipped by complete knowledge of the schemes so
that they can give proper knowledge to the retailers.
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Type Public (NYSE:PEP)
Founded New York, U.S.(1965)
Headquarters Purchase, New York , U.S.
Area Served Worldwide
Key people Indra Krishnamurthy Nooyi (Chairwoman),
(President) & (CEO)
Industry Food & Non-alcoholic beverage
Products Pepsi, Diet pepsi, Mountain Dew, Mirinda,
7UP, Nimbooz, Aquafina (mineral water),
Gatorade (sports drink), Slice, Tropicana
Products, Lehar (soda water), Quaker Oats,
Frito-Lay, Cheetos, Kurkure, Uncle Chipps
Revenue USD 43.251 Billion (2008)
Employees 185,000 (2008)
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Divisions PepsiCo America (PepsiCo Americas Food,
PepsiCo Americas Beverages ), PepsiCo
International
Website PepsiCo.com
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INTRODUCTION
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27
billion and over 147, 00 employees. The company consists of the snack business of Frito-
Lay North America and the beverage and food businesses of PepsiCo Beverages and
Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and
Gatorade/Tropicana North America0 and Quaker Foods North America. PepsiCo
International includes the snack businesses of Frito-Lay International and beverage
businesses of PepsiCo Beverages International. Pepsi Co brands are available in nearly
200 countries and territories.
With a fierce competition ranging amongst various companies involved in the field of soft
drink, brand awareness and promotion are indispensable for the future growth prospects.
In this project, I m going to discuss and analyze the awareness and positioning of SLICE
In the field of juice based product in the market and the taste & preference of consumer
In this project, based upon marketing research, I defined the problem, collected, organized
and analyzed the data; making deductions and evaluations; thereby reaching the
conclusions.
Brand awareness is not such an easy task; therefore, I m going to adopt a multiple strategy
in defining the problem, evaluating the data and suggesting the recommendations.
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Multiple strategy includes an extensive research on secondary data i.e. data which has
already been collected by someone else; thereby making it much more valuable and
appropriate by analyzing it in the perspective of new and the first hand data i.e. Primary
Data, which happens to be original in character.
It is absolutely essential to determine the various ways for the business to grow and
succeed in a dynamic way and finding the root cause for the available problem, to discard
it.
Methodologically, marketing research uses several types of research designs namely;
Qualitative techniques, Quantitative techniques, Conceptual and Empirical techniques,
Descriptive and Analytical techniques etc. Researchers may adopt more than one research
designs i.e. a multiple research design strategy, but to achieve the aim and objective of the
project, Quantitative Research Design has been adopted- which is generally used to draw
conclusions, uses random sampling techniques to as to infer from the sample to the
population- involves a large number of respondents- examples include Surveys and
Questionnaires.
Therefore, the entire marketing research project depended hugely for its success on an
appropriate an effective Questionnaire as it is very rightly called the heart of the entire
survey operation. If it is not properly set up: -
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Then the survey and its outcomes are bound to fail. Hence first and foremost, I m going to
define and explain the relevance and appropriateness of each and every questions which
was made a part of the Questionnaire and how it moved the project towards its pre-
determined objectives. To understand that better, we must have a look at the
Questionnaire compiled.
Brand awareness is the ability of potential buyer to recognize or recall that a brand is a
part of a product category. In other words, the customer should be able to identify a firms
product in the retail store or able to recall its brand whenever he or she thinks of the
product class. Brand awareness has to be thought of as a continuous range from an
uncertain felling that a brand is recognize to a belief that it is the only one in the product
class. At the top end of the continuum is the brand that exists at the top of the customers
mind. This is the happy and most desired condition that any marketer seeks. The next
level is of all the other brands that are recalled by the customer in an unaided form. The
customer is asked to recall as many as he or she is able to whenever one thinks of aproduct.
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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.
HISTORY OF PEPSI
Caleb Bradham of New Bern, North Carolina was a pharmacist.
Like many pharmacists at the turn of the century he had a soda
fountain in his drugstore, where he served his customers refreshing
drinks, that he created himself. His most popular beverage was
something he called "Brad's drink" made of carbonated water,
sugar, vanilla, rare oils, pepsin and cola nuts.
"Brad's drink", created in the summer of 1893, was later renamed
Pepsi Cola in 1898 after the pepsin and cola nuts used in the recipe. In 1898, Caleb
Bradham wisely bought the trade name "Pepsi-Cola" for $100 from a competitor from
Newark, New Jersey that had gone broke.
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and
applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and
sold it exclusively through soda fountains. But soon Caleb recognized that a greater
opportunity existed to bottle Pepsi so that people could drink it anywhere.
The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered
with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme
line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to
bottle Pepsi to independent investors, whose number grew from just two in 1905, in the
cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907.
By the end of 1910, there were Pepsi-Cola franchises in 24 states.
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Pepsi-Cola's first bottling line resulted from some less-
than-sophisticated engineering in the back room of Caleb's
pharmacy. Building a strong franchise system was one of
Caleb's greatest achievements. Local Pepsi-Cola bottlers,
entrepreneurial in spirit and dedicated to the product's
success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola
enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per
year.
Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the
town of New Bern pictured it on a postcard. Famous racing car driver Barney Old field
endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer
before a race."
After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the
fluctuations of sugar prices during W.W.I, believing that sugar prices would continue to
rise but they fell instead leaving Caleb Bradham with an overpriced sugar inventory. Pepsi
Cola went bankrupt in 1923.
In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G.
Guth who reformulated the popular soft drink. Guth struggled to make a success of Pepsi
and even offered to sell Pepsi to the Coca-Cola company, who refused to offer a bid.
In 1940, history was made when the first advertising jingle was broadcast nationally. The
jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of
Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was
recorded into fifty-five languages.
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ORIGIN OF VARUN BEVERAGES LTD. UNDER RKJ GROUP
It can be said with absolute certainty that the RKJ Group has carved out a
special niche for itself. Its services touch different aspects of commercial and
civilian domains like those ofBottling, Food Chain and Education. Headed
by Mr. R. K. Jaipuria, the group as on today can laid claim to expertise and
leadership in the fields of education, food and beverages.
The business of the company was started in 1991 with a tie-up with Pepsi
Foods Limited to manufacture and market Pepsi brand of beverages in
geographically pre-defined territories in which brand and technical supportwas provided by the Principals viz., Pepsi Foods Limited. The manufacturing
facilities were restricted at Agra Plant only.
Varun Beverages Ltd. is the flagship company of the group.
The group also became the first franchisee for Yum Restaurants
International [formerly PepsiCo Restaurants (India) Private Limited] in
India. It has exclusive franchise rights for Northern & Eastern India. It has
total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company.
It diversified into education by opening our first school in Gurgaon
under management of Delhi Public School Society. The schools of the group
are run under a Registered Trust namely Champa Devi Jaipuria Charitable
Trust. Companies are medium sized, professionally managed, unlisted andclosely held between Indian Promoters and foreign collaborators.
The group added another feather to its cap when the prestigious
PepsiCo International Bottler of the Year award was presented to Mr.
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R. K. Jaipuria for the year 1998 at a glittering award ceremony at
PepsiCos centennial year celebrations at Hawaii, USA. The award was
presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the
presence of Mr. George Bush, the 41st
President of USA, Mr. Roger A.
Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig
Weatherup, President of Pepsi Cola Company.
Vision
Being the best in everything we touch and handle.
Mission
Continuously excel to achieve and
maintain leadership position in the
chosen businesses; and delight all
stakeholders by making economic
values in all corporate functions.
Their Success
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Production of innovative, high quality retail
branded beverages combined with world-class
packaging.
Driven by a management team
with a relentless focus on achieving superior
customer service, driving earnings improvement and increasing
shareholder value.
Their People
At RKJ Group they are creating an environment
where our employees enjoy a greater degree of
empowerment both individually and in their work
teams.
Their employees are equipped
with the necessary tools, training
and management backup for strong performance and
accountability, as well as in an environment of open
communication and involvement.
RKJ GROUP OWNED BUSINEES IN INDIA AND
WORLDWIDE
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COMPANY PROFILE WORLDWIDE
COMPANY VISION
To become truly global company, by continuing to build a competitive and
profitable worldwide refreshment beverage business.
PEPSI COLA INTERNATIONALS STRATEGY
Target core Brand
Focus on business growth.
Satisfy market priorities
Focus on franchising with building core of company owner.
A North Carolina Pharmacist established Pepsi Cola in 1980 as a cure for
Dyspepsia (indigestion). Under the supervision of Mr. Bradhman Pepsis
first bottling plant was build 1905.
In 1977, when Coca-cola left the country then Pepsi Co. began to lay
plans to enter this huge Indian soft drink market. Pepsi working with Indian
business groups to seek government approval for its entry in the India soft
drink market. Pepsi offered Indian Government to help in the exports of
some of its agricultural products in a volume that would cover the cost of
importing soft drink concentrate.
Pepsi Company is established in Indian in 1989. At that particular time it
was know as a non-Cobo (Company owned bottling operations) company. In
January 1995 Pepsi took over and it is now known as a Cobo (Company
owned bottling operations) company. It joined hands with Voltas Ltd with
60%equity. But now it has become a fully owned subsidiary.
Pepsi Company is broad based food and Beverages Company, servingmore than 60% of its sales and operation profits from its snack- foods and
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restaurants business. Established with a turnover of $ 28 billion in 1989, thecompanys beverage business has grown 50% streets ahead of the market;which has expanded by 20%. It poured in vast sums to whip up its visibilityat the retail level, so that consumes were greeted virtually at very streetcorner by Pepsis blue-red and white colors. Behind the hype, in effortinvisible to consumers, Pepsi pumped in Rs.300 Crore to add muscle to itsinfrastructure in bottling and distribution. This is apart from the money thatup grading the plants.
April 1993, Voltas and Punjab Agros equity stakes were bought over
converting Pepsi Foods from a joint venture to fully own subsidiary. Weak
bottlers who did nit have the finance were given massing support in from of
interest- free loans to upgrade their operations. But the big strategy, which
has proved to be winner was the position Pepsi, decided taken company
owned Bottling operations (COBO). For this another subsidiary Pepsi co.
India Holding was set up as investment vehicle capitalized at $9.5 million.
1991 saw a major launch of 7-up in India, which was warmly received by
India customers and consumers.
1994 Pepsi achieved the number 1 position in cola brand India.
1995 2new COBOs were opened in UP & Gujarat.
1996 Mirinda attend No 1 Position in orange beverage category.
May 1998 was major launch of Mirinda Lemon in India.
Pepsi is trying very hard to maintain the lead it made over its competitors
in the India sift drink market. It is expanding its business in the other fields
also. It is in the business of export of beverages concentrates. This year Pepsi
has achieved a 100% growth in the export turnover in the first quart of 1998
over the corresponding period for the previous year. Pepsi has taken a lead in
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the beverage concentrate exports from potential in the near future. Pepsi has
also developed agricultural linkages to boot its export thrust and as a move in
the direction, its plant at Sonepat has become the first rice-processing facility
in India.
Pepsi mean while added a new range of products to its agro-export
Portfolio. These include Baron, a bread of peanut butter marketed in U.S.,
Branded red and green chili, Puree, ginger and garlic paste &cooking paste
under the seasons Harvest home, which is also the name of its branded
basmati rice.
At present Pepsi is trying very hard to maintain its position in the market. Itis operating in a very well managed manner. Some of its strategies itfollowed to be competitive in the market area follows
EMPOWERMENT
One of the strongest weapons in the Pepsis armory is the flexibility it has
empowered with its people. Every manger and sales person has the
authorities to take whatever steps he feels will make consumer aware of the
brand and increase its consumption.
CHANNEL MANAGEMENT
Pepsi has a very well managed distributive system. It is said the Pepsi dont
have bottlers, it has partners. Pepsi has a well-aligned bottling network. It
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operates through COBO (Company owned bottling operations) and FOBO
(Franchise owned Bottling Operations)
It is this way a Pepsi Co., India Strengthens its marketing that gives it anedge. Every number of its sales team is meticulously taught themerchandising and display skills that can leverage the reach of thecompanys bottling network to achieve high visibility for the product.
COMPANY PROFILE IN INDIAN SCENARIO
Since the entry of Pepsi co. to India in 1987, the soft drink Industry hasundergone a radical change. When Pepsi entered parley was the leader withThumps UP being its flagship brand. Other product offerings by parley
included Limca & Gold Spot. Another upcoming player in the market wasthe erstwhile bottle of Coca-Cola, Pure Drinks. Its offerings included CampaCola, Camps Lemon and Campa Orange.
With the re-entry of Coca-Cola in the Indian market, Pepsi had to go infor more aggressive marketing to sustain its market share. The chronologythe initial phase of the Coal Wars in India was:
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July 1986
An application for soft drinks-cum-snack food joint venture by Pepsi,
Voltas and Punjab Agro is submitted to the government after an earlier
proposed alliance- 1985, between Pepsi and Duncans of the Goenkas fails to
take off.
Sept.1988
Final approval for the Pepsi Foods Limited (P.F.L) project granted by
the Cabinet Committee on Economic Affairs of the Rajeev Gandhi
Government.
March 1990Pepsi Cola and Seven up Launched in limited market in North India.
May 1990
The government clears the Pepsi project again but with a change in brand name to Lehar Pepsi. Simultaneously it rejects the Coca-Colaapplication. Citra form the Parle stable hits the market.Dec 1991
Pepsi extends its soft drinks reach on national scale. Productslaunched Delhi and Bombay.
Jan 1992
Brito Foods application cleared by the FTPB. Pepsi and Parle start
initial negotiations for strategic alliance but talks break off after a while.
1993
Pepsi launches Teem and Slice. Captures about 25.30% of the softdrinks market in about two years.
July 1993
Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to92% Reports of coke Parle negotiations gain strength.1994
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Pepsi brought Dukes& Sons
1995
Pepsi launched Cans having capacity of 330 ml in various flavors.
1997
Pepsi brought Mirinda Orange opposite to Fanta.
1998
Pepsi launched Lemon Mirinda to give taught competition to Limca.
1999
Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for
health conscious people.
1997
Refusing to dilute its equity state Coca-Coal winds up operations inthe country. Parle launches Thumps Up and Drinks launches Campa Cola.2001
Pepsi launched Aquafina.2003
Pepsi launched Mountain Dew
2005
Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.
2006
Bubbly Pepsi was launched.
2007
Pepsi Gold was launched.
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ABOUT ORGANIZATION AND ITS OBJECTIVES
By the word organization we generally mean, a structural framework of
duties and responsibilities required of a personnel in achieving the
predetermined goals.
An organization of VBL is a simple yet complex in terms of the
different designations provided to its employees.
Companys overall view of organization can be successfully dealt as follows:
The people at PBG reflect the Companys emphasis on superior salescapability and service. In North America, more than one-half of PBG
employees work in sales, followed by nearly one-third in operation. Their
organizational structure, based on a general management model, reflects the
same priorities. The Vice President/General Managers of PBGs market units
lead marketing and sales efforts in contiguous geographic areas with
common major customers. They designed their organization to give their
market units the autonomy to serve the needs of individual customers,
develop market-specific strategies, and respond to local marketplace
dynamics. From the General Manager to the frontline customer
representative, the entire PBG sales force competes on a local level to serve
existing customers and to win new accounts.
Their aims are:
We compete locally.Small in big/small companyVisible community leadershipMindset of an entrepreneurKnow/Service every customer
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Sense of urgencyThere is no tomorrow.Fix it today.Our success is built upon passion.
Every front-line job has targets.Reinforce goals, plan performancePrioritize, focus, simplifyClear accountability for resultsNo excuses.
Treat everyone fairly, and with dignity.Operate with integrity and justice.Every individual is important.
OBJECTIVES OF VARUN BEVERAGES
The objectives of VBL are:
To observe the implementation and working of
sales club programme at different sections in
Noida. To monitor whether it is successfully
implemented in the market.
To monitor the customer awareness about the
sales club programme whether they are fully
aware about the programme or not.
To check out that all the required materials for
sales club programmed are given to customer/
retailer or not.
To find out the effect on increasing the sales b/z
of sales club programmed at partial shop.
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To monitor the purity of vis-cooler at sales club
account.
To monitor the purity of sack at sales club
account.
To monitor whether updates in the programmed
book is clan in time or not.
To make the books available to the customers.
OTHER INFORMATIONS ABOUT VBLEARNINGS RELASES
Pepsi Cos 2004 quarterly earnings releases are expected to be issued the
week of April 12
July 12, September 27, 2005 and January 30, 2005.
COMPANY DOCUMENTS
Investor relations: - Security analysts and other members the professional
financial community who have question Pepsi Cos investor relations
department at (914) 253-3035 or (914) 253-2155.
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SHAREHOLDERS: - Pepsi Cos (symbol: PED) shares are traded
principally on the New York Stock Exchange in US. The company is also
listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. Pepsi
Cos has consistently paid cash dividends since the corporation was founded.
MISSION STATEMENT
Our mission is to be the worlds premier consumer products company
focused on convenient foods and beverages. We seek to produce healthy
financial rewards to invest as we provide opportunities for growth and
enrichment. Our employees, our business partners and the communities in
which we operate. And in everything we do, we strive for honesty, fairness
and integrity! as exclaimed by Pepsi Cos.
CORPORATE CITIZENSHIP
Pepsi Cos believe that they are corporate citizen; it has a responsibility to
contribute to the quality of life in our commodities. This philosophy is put
into action through support of social agencies, projects and programs. The
scope of this support is extensive-ranging from sponsorship of local
programs and support of employees voluntary activities to contribute to
time, talent and funds to programs of national impact. Each division is
responsible for its own giving program. Corporate giving is focused on
giving where Pepsi Cos employees volunteer.
PEPSI HEADQUARTERS
Pepsi Cos world headquarters is located in purchase, New York,
approximately 45 minutes from New York City. Edward Darell Stone, one of
Americas foremost architects, designed the seven building headquarters
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complex. The building occupies 10 acres complex that includes the Donald
Mkendall sculpture gardens, a world acclaimed sculpture collection in garden
setting. The collection of work is focused on major twentieth century art, and
features work by such as Augusta Rodin, Henri Laurens, Henery Moore,
Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes
Oldenberg. The gardens were originally designed by the world famous
garden planner, Russel Page, and have been a visitors booth in operation
during the summer and spring.
TRAINING AND DEVELOPMENT
It provide following to employee:
On Job Training Program
In House Training Program
Out door Training Program
WELFARE ACTIVITIES
Company provides welfare activities to its employees like:
Uniform
Transportation facilities
Canteen
Annual meet etc.
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QUALITY POLICY
The best delivery.
The best product in the market place
The highest quality
The best testing.
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PROBLEM UNDERTAKEN/STUDIED
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Quite often we all hear that A problem clearly stated is a problem half solved. This
statement signifies the need for defining a research problem. The problem to be
investigated must be defined unambiguously for that will help to discriminate relevant
data from the irrelevant ones. Defining a problem involves the task of laving down
boundaries with in which the researchers shall study the problems with predetermined
objectives in view. The techniques for the purpose involve the undertakings of the
following steps:
Understanding the problem
Understanding the mature
Surveying the available nature
Developing the ideas to through discussion
Rephrase the research problem
While conducting the survey in PEPSI and making a glance on the titles of the report i.e.
BRAND POSITIONING OF SLICE, following problems are pointed out under given
headings.
IDENTIFY THE PROBLEM:
1. The main problem is to know the awareness of the SLICE in the market.
2. To analyze the position of the SLICE in the juice based drink
3. To estimate the market share of the SLICE.
4. To find out the future demand of the product.
5. Advertising is effective to create impact on consumer or not.
6. To find out the expectation level of the consumer.
7. To know whether the company is able to met the demand of the product with
an effective supply chain method or not.
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8. To know whether the company have effective distribution system or not.
9. To know whether company have successfully analyze there weak routes.
IDENTIFY THE POSSIBLE CAUSES OF PROBLEM:
To identify the possible causes of problem a detailed study is done. The various possible
causes that come into focus are:
1. Lack of proper means of promotional activity or advertising.
2. Lack of proper analysis of week route area.
PROBLEM SOLVING TECHNIQUES:
The company should have to monitor these variables:
Market share of product.
Taste and preferences of customer.
Promotional activities.
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What's Inside Carbonated Soft Drinks
Soft drink production begins with the creation of flavored syrup using a closely-guarded
company recipe. The syrup is mixed with water and then carbonated by adding
carbon dioxide gas under pressure. This carbonation creates the "tingly fizz" that gives
soft drinks a refreshing taste. As with other foods, ingredients used in soft drinks are
approved and closely regulated by the U.S. Food and Drug Administration (FDA). The
ingredients used in soft drinks are found in a variety of foods. Ingredients may include:
Water: Soft drink production starts with a pure source of water. Regular soft drinks
contain 90 percent water, while diet soft drinks may contain up to 99 percent water.
Drinking water often includes trace amounts of various elements that affect its taste.
Because of this, bottlers use sophisticated filtering and other treatment equipment to
remove residual impurities and standardize the water used to make soft drinks.
Carbon Dioxide: When you open a soft drink bottle or can, the "pop" you hear and the
"fizz" you see is the rapid escape of carbon dioxide gas caused by the sudden release of
pressure on the beverage. Carbon dioxide, a colorless and odorless gas, is the essential
characterizing ingredient in all carbonated beverages. It is given off when we breathe and
is used by plants to produce oxygen. But when dissolved in water, carbon dioxide imparts
a unique taste. Bottlers buy pure carbon dioxide as a compressed gas in high-pressure
cylinders. Carbon dioxide gas is absorbed into the flavored soft drink in a carbonator
machine just before the container is sealed.
Flavors: One of the most important ingredients in soft drinks is flavoring. Most soft drink
bottlers mix many individual flavors to create distinctive tastes. Natural flavors in soft
drinks come from spices, natural extracts and oils. Fruit-flavored soft drinks such as
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orange and lemon-lime often contain natural fruit extracts. Other flavors such as root beer
and ginger ale contain flavorings made from herbs and spices. There are also some
artificial or man-made flavorings used in soft drinks since some natural flavors are limited
geographically, seasonally, or high demand.
Colors: Many people don't realize how important color is to taste perception. Color
affects our psychological impression of food. If you don't believe it, try eating a familiar
food in the dark. The colors used in foods and beverages come from both natural and
synthetic sources.
Acidulants: Similar to fruit juices and many other food products, most soft drinks are
slightly acidic. Acidulants add a pleasant tartness to soft drinks and act as a preservative.
Some soft drinks contain a small amount of one or two common food acidulants -
Phosphoric Acid and Citric Acid. Occasionally, other acidulants such as malic acid or
tartaric acid are also used.
Preservatives: Soft drinks do not normally spoil because of their acidity and carbonation.
However, storage conditions and storage time can sometimes impact taste and flavor. For
this reason, some soft drinks contain small amounts of preservatives that are commonly
used in many foods.
Potassium: Potassium is another essential nutrient found in many natural and man-made
food ingredients. Like sodium, potassium exists naturally in drinking water and, therefore,
soft drinks. Small amounts of potassium are also found in some of the flavoring agents
and other ingredients used in soft drinks.
Sodium: Sodium, in the form of various salts, is present in many natural and man-made
compounds. It is an essential mineral nutrient responsible for regulating and transferring
body fluids, as well as other important body functions. Although an adequate daily intake
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of sodium is necessary for good health, excessive consumption has been tied to high blood
pressure in some people. Soft drinks are not significant sources of sodium in the diet. In
Soft drinks are classified by the Food and Drug Administration (FDA) as "low" or "very
low" sodium foods. Even people who are advised to restrict their intake of sodium by their
doctor can usually drink and enjoy soft drinks with their doctor's approval. Sodium-free
soft drinks are also available.
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PEPSI PRODUCTS
Pepsi makes carbonated soft drinks i.e. cola and non-cola flavor.
CORE BRANDS:
PEPSI
DIET PEPSI
PEPSI CAFECHINO
MIRINDA LEMON
MIRINDA ORANGE
SLICE
MOUNTAIN DEW
7UP
AQUAFINA
SODA
PACKAGES
Two Types: single serve and multi serve
67 packages sizes and types.
Materials: glass, plastic, cans.
Packages may be returnable or non-returnable.
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PRODUCT RANGE OF PEPSI
Gr.Noida plant in Varun Beverages plant is a dedicated plant for five major
products.
These are as follows:
PRODUCT BOTTLE
FILLING
PEPSI 300ml, 200ml
MIRINDA ORANGE 300ml, 200ml
MIRINDA LEMON 300ml, 200ml
SLICE 250ml
7-UP 300ml, 200ml
EVERVESS SODA 300ml
MOUNTAIN DEW 300ml, 200ml
Plant is producing 10 million cases every year.Plant has employed about 200 employees with separate company uniform on
permanent and causal basis. There are 40 managers/ officers/ supervisors and
rest of workmen. Plant is dispatching near about 125-150 tracks in peak
seasons per day to various location. This Plant spreads over 75 acres.
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AN OVERVIEW OF PEPSI-COLA BRANDS PRODUCED BYVBL
PEPSI
CONTENTS: -
CALORIES 100
TOTAL FAT 0gm
SODIUM 25mg
POTASSIUM 10mg
TOTAL CARBOHYDRATE 27g
SUGAR 27g
PROTEIN 0g
CAFFEINE 25mg
Pepsi contains carbonated water, high fructose com syrup and/or sugar,
Carmel color, phosphoric acid, caffeine, citric acid and natural flavors.
SLICE
Produced at 80.c and is prepared by VBL on large scale!
CONTENTS: -
CALORIES 130
TOTAL FAT 0g
SODIUM 35mg
POTASSIUM 70mg
TOTAL CARBOHYDRATE 34g
SUGAR 33g
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PROTEIN 0g
CAFFEINE 0g
Slice contains carbonated water, high fructose com syrup and/or citric
acid, potassium citrate, potassium benzoate (preserve freshness) gum
Arabic, malice acid, potassium sorbate (preserve freshness), yellow 6,
salt, ester gum, natural flavors, calcium disodium EDTA (to protect
flavor) and brominated vegetable oil.
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MARKETING STRATEGY:
Marketing Strategy is a complete and unbeatable plan designed
specifically for attaining the marketing objective of the firm. The marketobjective indicates what the firm wants to achieves, the marketing strategy
provides for achieving them.The marketing is not just idea. It is a well outlined plan, and there are
different 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,
the market was already prevailed by coke and previously it was Parle. Pepsitried to establish in India with a unique marketing policy. Pepsi took intoconsideration of youth segment target market. Though the advertisement ofPepsi highlighted the style of living of young generation with different walkof life, Pepsi brought in its advertisement different stalwarts personalitiesfrom fields like young cine stars, sport stars and famous personalities fromdifferent fields. It has attracted the young generation and of course increasethe sale of Pepsi, also organized many national and international sportsevents to attract the young generation.
MARKET MIX OF V.B.P.L
The set of controllable tactical tools:
A product, place, price and promotion (4ps) that the firm blends to produce the response it wants in the target market. These are thefollowing 4ps. Products: - That could meet the identified needs of chosen
consuming groups. Place: - It performs various functions like transportation,
warehousing, channel management etc. so the products easilyreach the consumer.
Price:- Affordable price of products for customers. Promotion: - The firm carries out a no. of measures like
personal selling, advertising and sales promotion programmedwith view to communicate to the consumer and promote the
product.
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It is the mechanism to achieve the consumptions of marketingprocess, striking the level of price that is accepted to the firm as wellas consumer.
4Ps policies of the Pepsi products:1. Product: - There are five lines of products of soft drink in India that is
almost matched with international quality product line.
Pepsi - 200 ml, 300ml, 600ml. and 2000 ml.
Miranda - 200 ml, 300ml, 600ml. and 2000 ml.
7 up - 200 ml, 300ml, 600ml. and 2000 ml.
Mountain Dew - 200 ml, 600ml. and 2000 ml.
Slice - 250 ml, 500ml, and 1000 ml.2. Price: - Product price are fixed by Pepsi Co India according to
competitors product price.3. Place: - Pepsi has a strong channel of distribution, and intermediaries
command the distribution work.
Plant - Depot - Distributor - Consumer.
By this simple distribution, Pepsi is doing well. The company is tryingto reach every remote village area. The company has succeeded tosome extent in reaching its target.
3. Promotion :- In the specific, sales promotion methods are those salesactivities that supplement both - personal selling and advertising andco-ordinate them and help to make them effective such as display,shows and exposition and demonstrations and other recurrent sellingefforts not in ordinary route.
Pepsi has variety of tools and techniques of salespromotion. Like for example sales promotion letters, catalogs, point ofpurchase (POP), display, customer service program and demonstrationof free sample.
PEPSICO DISTRIBUTION SYSTEM
Distribution of PepsiCo products mainly starts from bottling plant where company
mixes drink ingredients and fills up cans and bottles with the drink. There are different
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channel and mode of distribution. All methods of distribution are same for both COBO
and FOBO
There are two type of bottling plant.
Company Operated Bottling Operation (COBO)
These are owned and operated by PepsiCo. The Pepsi Bottling Group is the
world's largest bottler of Pepsi-Cola beverages. PBG has the exclusive right to
manufacture, sell and distribute Pepsi-Cola beverages.
Franchisee Operated Bottling Operation (FOBO)
Franchising refers to the method of practicing and using another person's
philosophy of business. The "franchisor" that is PepsiCo authorizes the proven
methods and trademarks of his business to the "franchisee" that is RKJ Group in
India for a fee and a percentage of gross monthly sales. Various tangibles and
intangibles such as national or international advertising, training, and other support
services are commonly made available by the franchisor.
Type of distribution :
Direct in this method company supply products via direct routes.
Indirect in which company distributes through distributor.
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Distribution Network:-
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O rganizational STRUCTURE
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Chairman
President
Unit Manager
TDM
ADC
Customer Executive Customer Executive
Distributers A,B,C
Route Agents
Distributers E,F
Route Agents
Helper Helper
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A customer, also called client, buyer, orpurchaser, is usually used to refer
to a current or potential buyer or user of theproducts of an individual
ororganization, called the supplier, seller, orvendor. This is typicallythroughpurchasing orrentinggoods orservices.
The word derives from "custom," meaning "habit"; a customer was someone
who frequented a particular shop, who made it a habit to purchase goods of
the sort the shop sold there rather than elsewhere, and with whom the
shopkeeper had to maintain a relationship to keep his or her "custom,"
meaning expected purchases in the future.
The slogans "the customer is king" or "the customer is god" or "the customer
is always right" indicate the importance of customers to businesses -although the last expression is sometimes used ironically.
My customers are following:
Wholesaler
Retailer
Shopping mall
Shoppers & Hotels
Customer service is the provision ofservice to customers before, during and
after a purchase.
According to Jamier L. Scott. (2002) Customer service is a series of
activities designed to enhance the level of customer satisfaction that is, the
feeling that a product or service has met the customer expectation."
Its importance varies by product, industry and customer; defective or brokenmerchandise can be exchanged, often only with a receipt and within a
specified time frame. Retail stores will often have a desk or counter devoted
to dealing with returns, exchanges and complaints, or will perform related
functions at the point of sale.
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http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Distributor_(business)http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Vendorhttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Rentinghttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Distributor_(business)http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Vendorhttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Rentinghttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Customer8/6/2019 Shashi Pepsi Project Report 2010
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Customer service is a type of service in which company give service to their
product and after sale service to their customer. Pepsi company has very
strong customer service regarding his vigi and sales.
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Recruitment
It is the process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their
application are submitted. The result is a pool of applicants from which new
employees are selected.
Purposes for recruitment:
The general purpose of recruitment is to provide a pool of potentially qualified
job candidates, specifically, the purposes are to:
1. Determine the present and future requirement of the Tripty drinks Pvt.
Ltd in conjunction with its personnel planning and job analysis.
2. Increase the pool of job candidates at minimum cost.
3. Meet the organizations legal and social obligation regarding the
composition of its workforce.
4. Begin identifying and preparing potential job application who will be
appropriate candidates.
5. Increased organizational and individual effectiveness in the short term
and long term.
Recruitment Planning:
The first stage in the recruitment process is planning. Planning involves the
translation of likely job vacancies and information about the nature of these jobs
into a set of objectives or targets that specify the (I) number and (ii) type of
applicants to be contacted. In order to reduce costs, organization looks into
labour markets most likely to offer the required job seekers.
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Generally, Tripty drinks Pvt.Ltd look in to the national market for managerial
and professional employees, regional or local markets for technical employees
and local markets for clerical and blue-collar employees.
1. Internal Recruitment:
Internal recruitment seeks application for positions from those who are currently
employed. Internal sources include present employees, employee referrals,
former employees, and former applicants. There is major advantage of internal
recruitment. First, it is less costly than external recruiting. Second, organization
typically has a better knowledge of the internal candidates skill and abilities
than the ones acquired through external recruiting.
2. External Recruitment :
External sources far outnumber the internal methods. Specifically, sources
external to an organization are professional or trade associations,
advertisements, college/ university/institute placement services, walk-ins and
write-ins, displaced persons, acquisitions and mergers, and competitors.
Generally in Tripty drinks Pvt.Ltd the most common and least expensive
approach for candidates is direct applications, in which job seekers submit
unsolicited application letters or resumes. Direct applications can also provide a
pool of potential employees to meet future needs.
Selection
Selection is the process of picking individuals (out of the pool of job applicants)
with requisite qualifications and competence to fill jobs in the organizations.
In Tripty drinks pvt Ltd the main medium of selection is Interview method. The
applications received from job seekers would be subjected to scrutiny so as to
eliminate unqualified applicants. This is usually followed by a preliminary
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interview the purpose of which is more or less the same as scrutiny of
applications, that is, elimination of unqualified applications. Scrutiny enables
the HR specialists to eliminate unqualified job seekers based on the information
supplied in their application forms. Preliminary interview, on the other hand,
helps reject misfits for reasons, which did not appear in the application forms.
Interview has at least three objectives -(i) helps obtain additional information
from the applicant; (ii) facilitates giving general information to the applicant
such as company polices, job, products manufactured and the like ; and (iii)
helps build the companys image among the applicant.
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PROMOTIONAL ACTIVITIES (FOR RETAILERS)
Promotional activities consist of various means of communicatingpersuasively with the target audience. The important methods are:
Advertisement: - Where an identified sponsors pays media(such as TV) to transmit to target consumer.
Personal selling: - Where sales representative employed by the firmengage in interpersonal communication with individual consumers and
prospective customers.Sales promotion: - Where the market utilizes displays,
demonstrations, premiums, contests or similar devices.Publicity and Public relation: - Help to stimulate supportive news
items about the firm and its product that have greater credibility with public
than advertisement.Of all the methods of promotional activities that constitute the
promotion mix, sales promotion is the only one method that makes use ofincentives to complete the Push Pull
promotional strategy of motivating the sales force, the distributor and theconsumer transacting a sale.
According to American Marketing Association sales promotionrefers Those activities other than personal selling, advertising and publicity,that stimulate consumer Purchasing and dealer effectiveness, such as display,shows and exhibition, demonstration and various other non-recurrent sellingefforts not in ordinary. Sales promotion is also known by the name ofExtra Purchasing Value (E.P.V.).
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VISI COOLAR DISPLAY,OYE BUBBLY CAMPAIGN
MS DHONI, SHAHRUKH, DIPIKA
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MEANING AND OBJECTIVE OF SALES PROMOTION
SL.No
SalesPromotion
Meaning Objective
1 Price off offers
Offeringproduct at lower
thanthe normal price
Toencourageimmediate
sales, attract nonnusers,induce newproduct trial.
2.Quantityoff
offer
offeringmore quantityofthe same product at noextra cost or a verynominal increase inthe
price the larger quantitypack.
Toencourage longerdurationconsumption,highest or excess quantitymovement fromthefactory, trade upconsumer for higherquantitypacks size.
3. Primium
Offer of anarticle ofmerchandise as anincentive inorder tosell
product of service
Toencourage purchasestimulate loyalty, offseasonsales promotion,induce trial of premiumtothe consumer.
4. Coupans
Whenthe consumer isentiledtoredeemspecificstandeardcertifecate for aproduct free or inpart payment. Coupons areusedbyboththemanufacturers andthedealers for sales promotion. Coupons maybe distributedbye-mail,bymedia advertisements,door-to-door. Inside product package or bydealers onpurchase.
toencourage producttrial, buildloyalty, tradeupregular users stimulatere-purchase rate, solicitenquiries.
5.Consumer
contests andluckydraws
Whenindividuals areinvitedtocompete onbasisof creative skills. The latteris basedonthe chance orluckfactor.
Tocreate brandawareness andstimulateinterest inthe brandacquaint consumers withbrandusage andbenefits buildtraffic at the storeprecipitate brandpurchase. Obtainconsumer feedback,pjromote advertisimenttheme of the company.
6. DiscountsOther thannormal tradeandcashdiscounts.
Topushmore sales totrade earlycashrecovery
7.Point-of-Purchase
(POP)
Those special displays,racks banner, exhibits, thatare placedinthe retailstore tosupport the sale ofa a brand.
Toattract traffic at theretail stores, remindcustomers, encourageimpulse buying, ensurevisibilitytothe advertisingcampaign.
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ADVERTISING
Advertising is helpful to the consumer and also to the producers through the
advertisement producers provide information and create awareness about the products
among the consumers. There are different forms of advertisements - TV, radio, poster,
magazines, newspapers, banners, boards etc. Among these, the TV media is the most
popular. The great personalities of India are the brand ambassadors of the soft drinks.
Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola
bottlers and food service customers. This includes some of the world's best-loved and
most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola
brands young. At the base of every beverage business lays the secret formula of success,
the concentrate. In India Pepsi Food Ltd prepares the concentrate. The plant is located at
village Channo in Punjab. The company manufactures and sells soft drink concentrate to
Pepsi-Cola bottlers. The company also provides fountain beverage products.
Pepsi has continuously focused on the current teen generation and their
advertisement reflects in every possible way.
The company changes its advertisement strategy and image to reflect the
targets interests.
The advertisement strategy includes cool, hip promos to attract more of the
target audience.
The advertisement is mostly creative and has different elements like, music,
sports etc.
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SWOT ANALYSIS
STRENGTHS: -
o Strong Brand name
o Pepsi has a broader product line and outstanding reputation
o Great brands ,strong distribution ,innovative capabilities
o High demand of the product
o Number one maker of snacks , such as corn chips & potato chips
o Wide and effective distribution network and well-built market
o Highly educated and well experienced Top Management
WEAKNESS: -
o Purity and quality of the products are estimated manually.
o Promotional activities in the rural market are not up to the mark as compared to
the urban market.
o Rude behavior of the salesman
o More emphasis is given on the big dealers.
o PEPSI has only one cola flavour where as its competitor has Coke and Thumps-
Up.
o Not all pepsico products bear the company name
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OPPURTUNITIES: -
o
It should give more incentives to the dealers in the new areas, where there is ahuge market potential.
o There are increasing trend toward healthy foods.
o More lucrative schemes must be launched regularly, specially during off seasons
so as to attract more and more customers.
o Apart from sponsoring films, cricket and music it should also sponsor the different
fashion shows, quizzes and debates in schools and colleges.
o If improve the salesmanship it can attract more n more retailers.
THREATS: -
o Now the consumers are moving towards fruit juices.
o F & B industry is mature
o Big threat is from its rival Coke.
o Size of company will demand a varied marketing program ; social, cultural ,
economic , political and governmental constrains .
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PEPSI .. YEH DIL MAANGEMORE