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SUMMER TRAINING
PROJECT REPORT
ON
DISTRIBUTION STRATEGY AND MARKET SHARE OF
PEPSI
LUMBINI BEVERAGES PVT. LTD
PEPSI
MASTER OF BUSINESS ADMINISTRATION
Submitted By :
Mr. RAJENDRA PRASAD
Under The Guidance
MANISH SINGH
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TABLE OF CONTENTS
1. INTRODUCTION :-
2. . COMPANY PROFILE-IN U.S. COMPANY PROFILE-IN INDIA
BUSINESS SEGMENT
BEVERAGE INDUSTRY
FOOD INDUSTRY
ADVERTISEMENT AND ADD CONCEPT
2. DISTRIBUTION NETWORK
NETWORK DESIGN
DISTRIBUTION STRATEGIES
DISTRIBUTION CHANNELS
3. OBJECTIVE OF THE STUDY
4. RESARCH METHODOLOGY
5. DATA ANALYSIS
MARKET FINDINGS
ROUTEWISE
QUESTIONNAIREWISE
6. SWOT ANALYSIS
7. CONCLUSION
8. LIMITATIONS
9. RECOMMENDATIONS/SUGGESTIONS
10. BIBLIOGRAPHY
11. ANNEXURE QUESTIONNAIRE
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EVERY DEALER SURVEY (EDS)
LOGO OF THE PEPSI BRAND
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EXECUTIVE SUMMARY
Analyzing the Distribution Strategy of PEPSI in PATNA
Channels of distribution are an important aspect of marketing strategy.Channels chosen for the companys products effect every other marketingdecision.
On 19th JULY I start my project under the guidance of Mr. MANISHSINGH (S.O.)PATNA. I have been allocated the area for survey inKANKARBAGH(PATNA).
Number of Retailers Covered:- 640
Market Area Of KANKARBAGH :-1.ASHOK NAGAR
2.HANUMAN NAGAR
3.PROFESSER COLONY
4.BHOTHNATH ROAD
5.PROFESSER COLONY
6.DOCTORS COLONY
7.RAJENDRA NAGAR
8.CHANWARI ROAD
9.KANTI FACTORY ROAD
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ACKNOWLEDGEMENT
I express our thanks to Lumbini Beverages Pvt. Ltd for granting me thepermission to work with the esteem organization. I am also thankful toMr. Manish Singh(S.O.), Lumbini Beverage Pvt. Ltd. who guided andhelped us in all possible ways they could, at every stage of the project.
My humble thanks are due to all our professors for guiding me during thetwo months training as my training mentor.
I would also like to thank all the Executives, distributors & staff ofKankarbagh area who provided us all the relevant information and theirkind support, on the basis of which this report has been prepared.
Lastly I would like to pay our special regards to my parents for theirencouragement and full support for completion of this project work.
RAJENDRA PRASAD
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INTRODUCTION
Modern age is full of competition. Today only way of success is yourcontinuous efforts towards the growing market needs and in satisfyingthem. It is the marketer job to know what the market speaks i.e. the everchanging needs of the customer through market research & adopt themfruitfully. It is must for all the companies to make policies according tothe customers and the govt. Today to succeed for any organization has totarget its customer needs, to create a culture in the organization i.e.market conscious & responsive to customer needs.
Soft drinks industry has become big business in India in recent years.
The soft drink business under went major change with the entry of PEPSIand re-entry of COCA-COLA in India in the late 80s when Parley with
brands like Thumsup, Limca & Gold spot was a clear leader. Coca-Colatook up the product line of parley in 1993-94; today both brands are theIndians favorite soft drinks
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COMPANY PROFILE-PEPSI CO. (US)
PepsiCo is a world leader in convenient foods and beverages, with
revenues of about $27 billion and over 143,000 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 America) and Quaker Foods North
America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages
International. PepsiCo brands are available in nearly 200 countries and
territories.
Many of PepsiCo's brand names are over 100-years-old, but the
corporation is relatively young. PepsiCo was founded in 1965 through the
merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and
PepsiCo merged with The Quaker Oats Company, including Gatorade, in
2001.
Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi
(1964) and Mountain Dew (Introduced by Tip Corporation in 1948).
Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in
1932), Lay's brand potato chips (created by Herman W. Lay in 1938),
Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips
(1958) and Rolled Gold brand pretzels (acquired 1961)
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Pepsi co is the world leader in the food chain business. It consists of
many companies amongst which the prominent one is Pepsi cola, frito
lay, Pepsi food international, pizza hut, and KFC and taco bell. The group
is presently into three most profitable businesses namely, beverages,
snack foods and restaurants. It has scores of big brand available in nearly
150 countries across the globe.
The beverages segment primarily market Pepsi diet, mountain dew and
other brands worldwide and 7UP outside the U.S. market. They are
positioned in close competition with Coca-Cola inc. of USA. A point to
be noted is that coca cola get 80% of its profit from international
operation while same figure of Pepsi co. stand at 6%, the segment is also
in the bottling plants and distribution facilities.The restaurant segment
primarily consists of the operations of the worldwide pizza hut, Taco
Bell and KFC. Long time no.2 player in the cola wars, Pepsi co. is
widening the play field, over the last years; the company has investedmore than $2billion in its worldwide operations. When Coca-Cola
changed its formula in 1985, Pepsi stepped up its competition with its
long time archival claiming victory in the cola wars. Coke and Pepsi
expanded their rivalry to tea in 1991 when Pepsi formed a venture with
#1 Lipton in response to cokes announced venture with nestle (Nestea) it
has won over 30% of the ready to drink tea market, a part of the so called"new age beverages segment.
The beverage industry has witness the phenomenal growth over the last
few years necessitating capacity increase and builds up of commensurate
infrastructure to meet the business growth, which is accordingly matched.
PepsiCos success is the result of superior products, high standards
of performance, distinctive competitive strategies and the high integrity
of our people.
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COMPANY PROFILE-JAIPURIA GROUP: IN INDIA
With a Legacy of decades in the industrial arena, the Jaipuria Group of
Companies now stands at the one thousand five hundred Crore marks.
The group boasts of its several world-class business arenas like those of
Textiles, Bottling, education, and information technology, Food Chain
and Retailing, apart from numerous other business segments
JAIPURIA GROUP is a Rs.1500 Crore, family controlled, reputed
business house with over a century of operations in diversified fields.
The group as on today can boast of expertise and leadership in the fields
of food and beverages, textiles and real estate development with varied
interests in a wide
range of products and services.
The Jaipuria Group under the leadership of the three brothers SK Jaipuria,
RK Jaipuria and CK Jaipuria has today become one of the leading
business houses of
the country.
The following are the major areas of operations of the Jaipuria Group:
Food and Beverages
Textiles
Information Technology
Real Estate
Education
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It can be said with absolute certainty that the RKJ Group has carved out a
special niche for itself. Our 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 lay
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
support was 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 27 Pizza Hut Restaurants under its company.
We 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 and
closely held between Indian Promoters and foreign collaborators.
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The group added another feather to its cap when the prestigious PepsiCo
International Bottler of the Year award was presented to Mr. 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 of the Company:
Being the best in everything we touch and handle.
Mission of the Company:
Continuously excel to achieve and maintain leadership position in thechosen businesses; and delight all stakeholders by making economic
value additions in all corporate functions.
MAIN CREDENTIALS
1. VARUN BEVERAGES LIMITED received" GOLD STANDARDAWARD" for the production and quality control for the year 1996-97.
2. Jaipuria group was adjudged Best Bottler out of more than 2000
bottles all over the world for the year 1996-97.
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bottles per minute, which would mainly cater to northern markets of
India. And in future, they will also be used to manufacture fruits mince-
based soft drinks like slice and mangola.
INGREDIENTS OF SOFT DRINK:
We only use the finest ingredients to make Pepsi-Cola products. To
guarantee our consumers consistent quality, each ingredient must pass our
high standards, rigorous quality control tests and strict bottling
procedures.
Pepsi-Cola products contain natural flavors, including extracts of the
kola nut ND flavor oils derived from natural sources such as citrus and
other fruits. Caramel (made from corn sugar) adds color and flavor to our
colas. Other ingredients add a refreshing taste: phosphoric acid in colas;
citric acid and sodium citrate in Mountain Dew, Slice and Diet Pepsi.
We also put a freshness date on every can and bottle. Soft drinks may
lose some flavor over time so our freshness date tells consumers when the
product is freshest and best tasting.
Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel,
which shows the number of calories and other nutrients per serving.
There is essentially no fat in any Pepsi-Cola a product. The main
ingredients found in Pepsi-Cola products include carbonated water,
carbohydrates, sugar, sodium, potassium and caffeine. For a complete
breakdown by ingredients by product, see our product information for
Pepsi, Diet Pepsi, Mountain Dew, Slice and Aquafina.
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Caffeine
Caffeine provides a characteristic flavor to soft drinks. Caffeine is
naturally found in coffee, tea and chocolate. For comparison, an 8-oz. cup
of brewed coffee can have from 85-120 mg of caffeine on average, while
an 8-oz. serving of Pepsi contains about 25 mg of caffeine. An 8-oz. cup
of coffee therefore contains three to four times as much caffeine found in
a caffeinated colon.
There is no caffeine in Caffeine Free Pepsi, Caffeine Free Diet Pepsi,
Aquafina, Slice, Mountain Dew or Mirinda.
Caramel
Caramel is a flavoring that is added to some of our beverages.
Citric Acid
Citric Acid can be found in citrus fruits such as lemons and oranges.
Citric acid is used to bring out the flavor of other ingredients and imparts
a tang or tartness to beverages. Citric acid is not Vitamin C. the same
fruits that have citric acid often have Vitamin C but the technical name
for Vitamin C is ascorbic acid.
Gum Arabic
Gum Arabic is a purified natural vegetable gum obtained from the acacia
tree and is used in keeping our carbonated beverages well blended.
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Potassium
Potassium in Pepsi-Cola products may come from water or as part of
certain ingredients. For example, potassium may be combined with
benzoic acid, which helps prevent spoilage and flavor changes. Potassium
is an electrolyte that helps meet the mineral needs of active people.
Quillaia
Quillaia Extract is a purified extract derived from the bark of the Quillaia
tree. It is carefully selected based on its characteristics. It is cooked,
filtered and pasteurized. It is FDA-approved, non-hazardous. Quillaia is
found in some of our frozen drinks.
Red 40
Red 40 is a FDA-approved food coloring used in beverages.
Sodium
All of our products are "low sodium" and contains less than 110 mg per
eight-fluid-ounce serving. A number of beverages have less than 35-mg
sodium per serving, so they are considered "very low sodium" products.Sugar
Regular soft drinks and sports drinks are sweetened with sugar. There are
many types of sugar available today. In soft drinks and sports drinks, the
sugar is primarily high fructose corn syrup, which comes from corn.
Total Carbohydrates
Total carbohydrates include the sugars and any carbohydrate-like parts ofingredients, such as organic acids. Although diet drinks may have no
sugar, they may contain more than half a gram of carbohydrate.
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Ranveer kapoor
Fardeen Khan
Amitabh Bachhan
Govinda
Rani Mukherjee.
Tennis Stars :-
Leander Paes
Mahesh Bhupati
Football Players
Cyrus Broacha
Bhaichung Bhutia
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PRODUCT & PACK PROFILE
PRODUCT: -
Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularlyknown are one of the largest FMCG market in the whole world with thetotal annual sales around $40 billion. This product is generally availablein four kinds of packing.
Glass Bottles
Pet Bottles
Cans
Fountain rim
FLAVORS: -
Cola
Orange
Clear Lemon
Cloudy Lemon
Berry
Ginger
Mango Slice
Out of these products the 70% of the sales of the company come from theCola brand, which is the market leader in the most part of the country ofthese kinds of packaging in which the product is available make them80% of the sales come from these bottles. The businesses of returnable
bottles are very cumbersome and make the market very complex anddemanding.
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RECOMMENDATIONS:-
1. PEPSI, the choice of Generation next is not providing the first choice
of young generation. A young generation wants something strong in cold
drinks & thus prefers Thumsup. Pepsi should come out with some extra
strong taste to catch up maximum young generation & to become exactly
Generation Next drink.
2. Company should appoint competent & honest salesman so that they
could provide schemes to the entire retailers & cover their full route.
3. It is often seen that some salesman do not intimate schemes to the
retailer & few of the retailers complained about it. So there should be
frequent visits of Customer Executives to their respective areas to keep
the shopkeepers benefited with various schemes.
4. Delay in starting of supply vans from respective depot should be
checked & a proper time register should be maintained.
5. Most of the retailers are complaining about non-fulfillment of
commitments regarding their sampling. Company should make sure that
the retailers get the sampling on time so that they are satisfied.
6. Most of the retailers are complaining about delay & no replacement of
burst bottles. Marketing Management should sort some solutions to this
major problem of replacing burst bottles.
7. Half filled bottles should also be checked at the time of issue of goods
from the distributors godown to the respective routes.
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