133975140 PepsiCo Project

8/13/2019 133975140 PepsiCo Project

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LLOYD INSTITUTE OF MANAGEMENT AND TECHNOLOGY

A SUMMER TRAINING PROJECT REPORT ON

“DE LER SURVEY TO M P WIDTH ND DEPTH OF V RIOUSBR NDS OF PEPSICO IN LL H B D”

SUBMITED TOWARDS PARTIAL FULFILMENT OF

MASTER OF BUSINESS ADMINISTRATION

FACULTY GUIDE INDUSTRY GUIDE

Mr. Vibhore Khandelwal Mr. Sugandh Tripathi

(A.S.M PepsiCo)

Submitted By-

Prashant Kumar Chaubey

Lloyd Institute of management and technology



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PREFACE

The MBA programme is well structured and integrated course of business studies.

The main objective of practical training at MBA level is to develop skill in student by

supplement to the theoretical study of business management in general. Industrial training

helps to gain real life knowledge about the industrial environment and business practices.

The MBA programme provides student with a fundamental knowledge of business and

organizational functions and activities, as well as an exposure to strategic thinking of

management.

In every professional course, training is an important factor. Professors give us

theoretical knowledge of various subjects in the college but we are practically exposed of

such subjects when we get the training in the organization. It is only the training through

which I come to know that what an industry is and how it works. I can learn about

various departmental operations being performed in the industry, which would, in return,

help me in the future when I will enter the practical field.

Training is an integral part of MBA. And each and every student has to undergo

the training for 60 days in a company and then prepare a project report on the same after

the completion of training.

During this whole training I got a lot of experience and came to know about the

management practices in real that how it differs from those of theoretical knowledge and

the practically in the real life.

In todays globalize world, where cutthroat competition is prevailing in the market,

theoretical knowledge is not sufficient. Beside this one need to have practical knowledge,

which would help an individual in his/her carrier activities and it is true that ―Experience

is the best teacher”.



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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for PepsiCo

Holdings India Limited. It has been an enriching experience for me to undergo my

summer training at PEPSICO, which would not be possible without the goodwill and

support of the people around. As a student of LIMT I would like to express my sincere

thanks to all those who helped me during my practical training program.

Words are insufficient to express my gratitude toward Mr . Sugandh Tripathi, the

Assistant Sales Manager in PepsiCo Holdings India Limited and Mr. Vibhore

Khandelwal Project Guide.

My heartfelt thanks go to all who helped me to gain knowledge about the actual

working and the processes involved in various departments.

However, I accept the sole responsibility for any possible error of omission and

would be extremely grateful to the readers of this project report if they bring such

mistakes to my notice.

Thanking You





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INDEX

SR. NO. CONTENT PAGE NO.

1. EXECUTIVE SUMMARY 6

2. OBJECTIVE OF SUMMER TRAINING 7

3. INTRODUCTION OF PROJECT 8

4. HISTORY OF COMPANY

8-10

5. COMPANY PROFILE 11-20

6. GUIDELINES & PRINCIPLES 21

7

STRATEGY

22-27

8

VISION & MISSION

28-43

9

PRODUCT COMPARISON

44

10

DISTRIBUTION CHANNEL

44-52

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ADVERTISING & PUBLICITY

53-54

12

RESEARCH METHODOLOGY

54-63

13

STATISTICAL REPRESENTATION

63-72

14

DETAILS OF SURVEY

73

15

PROJECT ANALYSIS

74

16

. FINDING & SUGGESTION

75-77

17.

LIMITATION & CONCLUSION

78

18.

QUESTIONNAIRE

79

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BIBLIOGRAPHY

80



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EXECUTIVE SUMMARY

I, Prashant Kumar Chaubey felt privileged to be a part of LLOYD

Institute of Management and Technology, Greater Noida. I did my summer internship

training in PepsiCo Holdings India Limited a FMCG sector company. My project title is

―Each Dealer Survey to Map Width and Depth of Various Brands of PepsiCo in

Allahabad”.

The project’s basic objective is to analyz the demand of various brands’

product of PepsiCo and the area covered by the other competing product in the market

and the number of outlets under the distributorship of PepsiCo Holdings India Limited.

As compared to their brands.In this project I surveyed in areas of Allahabad and asked selected questions to the

outlet owners who were either not selling Pepsi products or selling in very less/high

quantity.

Out of my project I learnt these things:

Pepsi should understand the expectations of people If one wants to grow in FMCG

sector one should keep the following factors in mind that the products are easily available

to the consumers, to improve the quality of products from time to time, competitive

services should be provided to the retailers, the price of the product should be low andlast but not the least the visibility and the promotional strategy should be such that it hits

people’s mind.

OBJECTIVE OF THE SUMMER TRAINING

TOPIC: - “Each Dealer Survey to Map Width and Depth of Various Brands of PepsiCo

in Allahabad”

During my summer training I have worked on the topic “Each Dealer Survey To

Map Width And Depth Of Various Brands Of PepsiCo In Allahabad” In Pepsi Co India

Holding Pvt. Ltd the work of Survey was given to me. I have done this survey keeping

in mind the following objectives



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Which I have mentioned below

Study those outlets which are not promoting Pepsi products in the areas covered in

Allahabad

To analyze the reasons of not selling Pepsi at retailers level.

To study the retailers satisfaction.

To find out the ways to enhance the sale of Pepsi.

INTRODUCTION

Beverage industry is one of the fast growing industries in India .it can be divided

into two sections i.e. carbonated and non-carbonated. The carbonated drinks that can be

further classified into cola, lemon orange, mango, and apple segments.

Marketing includes all the activities like promotion, distribution, advertising etc. to

fulfill all the segments of consumers. Marketing is also to convert social needs into

profitable opportunities. So this topic provides all the essentials to theoretical knowledge

with practical knowledge and to inculcate the efficiency. It is also requirement for the

company to improve their service and product quality for achieving their ultimate goal.

As far as the soft drink market is concerned, it is facing the cut throat competition

because of the availability of a large number of indirect as well as direct competitors.

Single company offers the soft drink to the market in different taste and flavors. In this

industry entire range of flavors are produced by other competitors also. More often it

becomes impossible to differentiate between the same flavors of two different brands,when served in plane container, range also. All these factors together make the situation

complicated. besides both corresponding brands have the similar price.

COMPANY’S HISTORY

BEVERAGES

Pepsi Cola Company

Caleb Bradham, a New Bern, N.C. druggist who first formulated Pepsi-cola,founded Pepsi Co.’s beverage business at the turn of the century i.e. in the year 1890. A

young phannacist Called Bradham began experimenting in 1890 as a cure for dyspepsia

(indigestion) with combination of spices, 1 juice and syrups and created a refreshing

new drink to serve his customer. He succeeded beyond all expectations as he invented

the new beverage now known around the world as "PEPSICOLE"



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In 1902, he launched the Pepsi Cola Company in the back room of pharmacy,

and applied to U.S. patient office for Trade Mark. The business began to grow and on

June 16, 1993, Pepsi-Cola trademark was officially registered with U.S. office.

Bradham believed marketing would be the key to

PEPSI-COLA prosperity and in his first year of business he spent $1900 on advertising

when he sold 40,000 liters of syrup. In 1905 he built Pepsi fits bottling plant. Three

more plants followed soon and in 1907, he was selling 50,000 liters year.

Troubles started at the end of the First World War when Bradham over stocked

sugar at high price, which subsequently dipped in 1920. By 1922, the company was

insolvent by 1923, it went bankrupt and Bradham returned to pharmacy.

In 1931, the company went bankrupt for the second time. At this time Charles

Groth, president of a giant candy company both the trademark. His success came when

he offered a 12-ounce bottle at 5 cent while other colas were sold at the same price in 6

ounce bottles. In 1936, Pepsi has a $2 million net profit.

Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsi

and other Pepsi-Cola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew,

slice and Mugvrands- Account for nearly one third of total soft drink sales in the United

States, a consumer marker totaling about $56 billion.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. Today

Liption is the biggest selling ready to drink tea brand in the United States. Outside the

United States, Pepsi-Cola Company's soft drink operations include the business of even-

up International; Pepsi-Cola beverages are available in about 170 countries.

Pepsi-Cola began selling it products internationally in 1934 with its operations

in Canada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products

account for about a quarter of all soft drinks sold internationally. In addition to brands

marketed in the United States, Major products include Miranda and Pepsi Max.

Pepsi-Cola provides advertising, marketing, sales and promotional support to

Pepsi-Cola bottles and food service customers. This includes some of the world lovedand most recognized advertising. New advertising and exciting promotions keep Pepsi-

Cola brands young.

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



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to the price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record

and was recorded into fifty-five languages.

In 1964, Diet Pepsi was introduced.

Competition

The Coca-cola Company has historically been considered PepsiCo’s primary

competitor in the beverage market,[ and in December 2005, PepsiCo

surpassed The Coca-Cola Company in market value for the first time in 112

years since both companies began to compete. In 2009, the Coca-Cola

Company held a higher market share in carbonated soft drink sales within

the U.S. In the same year, PepsiCo maintained a higher share of the U.S.

refreshment beverage market, however, reflecting the differences in productlines between the two companies. As a result of mergers, acquisitions and

partnerships pursued by PepsiCo in the 1990s and 2000s, its business has

shifted to include a broader product base, including foods, snacks and

beverages. The majority of PepsiCo's revenues no longer come from the

production and sale of carbonated soft drinks. Beverages accounted for less

than 50 percent of its total revenue in 2009. In the same year, slightly more

than 60 percent of PepsiCo's beverage sales came from its primary non-

carbonated brands, namely Gatorade and Tropicana.

PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the

U.S. snack food market, accounting for approximately 39 percent of U.S.

snack food sales in 2009.One of PepsiCo's primary competitors in the snack

food market overall is Kraft Foods, which in the same year held 11 percent

of the U.S. snack market share

THE BUSINESS

PepsiCo. Has a worldwide operation in 3 fields

Non Alcoholic beverage

Snack Foods.

Fruit Juices

http://en.wikipedia.org/wiki/Coca-Cola_Company



http://en.wikipedia.org/wiki/Soft_drink



http://en.wikipedia.org/wiki/Gatorade



http://en.wikipedia.org/wiki/Tropicana_Products



http://en.wikipedia.org/wiki/Frito-Lay



http://en.wikipedia.org/wiki/Quaker_Oats



http://en.wikipedia.org/wiki/Kraft_Foods












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Pepsi company profile

PepsiCo is a world leader in convenient snacks, foods and beverages, with revenuesof more than US$65.504 (2011) billion and over 285,000 employees.

PepsiCo is a world leader in convenient snacks, foods and beverages, with

revenues of more than US$ 66.504 billion (2011) and over 285,000 employees.

The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas

Beverages (PAB) and PepsiCo International (PI).

PAF includes Frito-Lay North America, Quaker Foods North America and all Latin

America food and snack businesses, including Sabritas and Gamesa businesses in

Mexico. PAB includes PepsiCo Beverages North America and all Latin American

beverage businesses. PI includes all PepsiCo businesses in the United Kingdom,

Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200

countries and generate sales at the retail level of more than $98 billion.

As of January 2012, 22 of PepsiCo's product lines generated retail sales of more

than $1 billion each, and the company’s products were distributed across more than 200countries, resulting in annual net revenues of $43.3 billion. Based on net revenue,

PepsiCo is the second largest food & beverage business in the world. Within North

America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.

Some of PepsiCo's brand names are more than 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.

PepsiCo offers product choices to meet a broad variety of needs and preference --from fun-for-you items to product choices that contribute to healthier lifestyles.

PepsiCo’s mission is ―To be the world's premier consumer products company

focused on convenient foods and beverages. We seek to produce healthy financial

rewards to investors as we provide opportunities for growth and enrichment to our

http://en.wikipedia.org/wiki/1000000000_(number)



http://en.wikipedia.org/wiki/Net_revenue







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employees, our business partners and the communities in which we operate. And in

everything we do, we strive for honesty, fairness and integrity.‖

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.

Corporate Citizenship

At PepsiCo, we believe that as a corporate citizen, we have a responsibility to

contribute to the quality of life in our communities. This philosophy is expressed in our



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sustainability vision which states: ―PepsiCo’s responsibility is to continually improve

all aspects of the world in which we operate – environment, social, economic -- creating

a better tomorrow than today.‖

Our vision is put into action through programs and a focus on environmental

stewardship, activities to benefit society, and a commitment to build shareholder value

by making PepsiCo a truly sustainable company.

PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York, approximately 45

minutes from New York City. The seven-building headquarters complex was designed

by Edward Durrell Stone, one of America's foremost architects. The building occupies

10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens,

a world- acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and features

works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander

Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens

originally were designed by the world famous garden planner, Russell Page, and have

been extended by François Goffinet. The grounds are open to the public, and a visitor's

booth is in operation during the spring and summer.

PEPSICO BEVERAGES NORTH AMERICA (PBNA)

PepsiCo’s beverage business was founded 1898 by Caleb Bradham, a New

Bern, North Carolina druggist, who first formulated Pepsi-Cola.

Today, Brand Pepsi is part of a portfolio of beverage brands that includes

carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks,

isotonic sports drinks, bottled water, and enhanced waters. PBNA has well known brand

such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina

http://www.pepsico.com/PEP_Company/Overview/





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water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana

Twister and Tropicana Season’s Best.

PBNA manufactures and sells concentrate for some of these brands to licensed

bottlers, who sell the branded products to independent distributors and retailers. PBNA

provides advertising, marketing, sales, and promotional support for its brands. This

includes some of the world's best-loved and most-recognized advertising.

In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-

to-drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-

drink coffee through a partnership with Starbucks.

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging

business. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first

time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida

orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became

the company’s flagship product. PepsiCo acquired Tropicana, including the Dole juice

business, in August 1998.

So Be became a part of PBNA in 2001. SoBe manufactures and markets aninnovative line of beverages including fruit blends, energy drinks, dairy-based drinks,

exotic teas and other beverages with herbal ingredients.

Gatorade thirst quencher sport drinks were acquired by The Quaker Oats

Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is

the first isotonic sports drink. Created in 1965 by researchers at the University of



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Florida for the school's football team, "The Gators," Gatorade is now the world's

leading sports drink.

PepsiCo Beverages North America includes the United States and Canada.

LATIN AMERICA BEVERAGES

The Latin Americas Beverage business features a powerful suite of powerhouse

brands and distinct products tailored for the market. Gatorade outsells the nearest

competitor more than five to one and, in Sao Paulo---7UP H2Oh! --- a lightly

carbonated, is dominating the competition in its lead market.

PepsiCo Americas Foods

FRITO-LAY NORTH AMERICA

PepsiCo's snack food operations had their start in 1932 when two separate events took

place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food

product – a corn chip – and started an entirely new industry. The product was Fritos

brand corn chips, and his firm became the Frito Company.

That same year in Nashville, Tennessee, Herman W. Lay started a business

distributing potato chips. Mr. Lay later bought the company that supplied him with

product and changed its name to H.W. Lay Company. The Frito Company and H.W.

Lay Company merged in 1961 to become Frito-Lay, Inc.

Major Frito-Lay products include Lay’s potato chips, Doritos flavored tortilla

chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles

potato chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix,









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Lay’s Stax potato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito-Lay

also sells a variety

of branded dips, Quaker Fruit & Oatmeal bars, Quaker Quakes corn and rice

snacks,Grandma’s cookies, nuts and crackers. Frito-Lay North America includes

Canada and the United States



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QUAKER FOODS NORTH AMERICA

The Quaker Oats Company was formed in 1901 when several American pioneers

in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and

William Heston had established the Quaker Mill Company. The figure of a man in

Quaker clothes became the first

registered trademark for breakfast cereal and remains the hallmark for Quaker Oats

today.

In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner,

George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher,

known as "The Oatmeal King," had founded German Mills American Oatmeal

Company in 1856.






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Combining The Quaker Mill Company with the Stuart and Schumacher businesses

brought together the top oats milling expertise in the country as The Quaker Oats

Company.

The first major acquisition of the company was Aunt Jemima Mills Company in

1926, which is today the leading manufacturer of pancake mixes and syrup. Gatorade

was acquired in 1983.

In 1986, The Quaker Oats Company acquired the Golden Grain Company,

producers of Rice-A-Roni.

PepsiCo merged with The Quaker Oats Company in 2001.

LATIN AMERICA BEVERAGES

The Latin Americas Foods business includes operations in Brazil, Argentina,

Colombia, Peru and Venezuela. This business continues to grow organically and

through acquisitions like the Lucky snacks business in Brazil.






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PEPSICO INTERNATIONAL

PepsiCo International includes all PepsiCo businesses in the United Kingdom, Europe,

Asia, Middle East and Africa.Pepsi-Cola began selling its products outside the United

States and Canada in the mid-1930s, opening in the United Kingdom in 1936.

Operations grew rapidly beginning in the 1950s. Today, PepsiCo beverages are

available in more than 170 countries and territories. Brands include Aquafina, Gatorade

and Tropicana.

In addition to brands marketed in the United States, PepsiCo International brands

include Mirinda, Seven-Up and many local brands.

PepsiCo began its international snack food operations in 1966. Today, products are

available in nearly 170 countries. Often PepsiCo snack food products are known by

local names. These names include Gamesa and Sabritas in Mexico, Walkers in the

United Kingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and






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others. The company markets Frito-Lay brands on a global level, and introduces unique

products for local tastes.

PepsiCo. Has a worldwide operation in 3 fields

Non Alcoholic beverage

Snack Foods.

Fruit Juices

PepsiCo India Holdings Private Limited

PepsiCo, the world leader in convenient foods and beverages, welcomes you to a

community of over 157,000 employees spread over more than 200 countries and

territories across the globe with annual revenues in excess of $33 billion. As part of its

sustainable development initiatives, PepsiCo India has been a committed leader in the

promotion of rain water harvesting, water conservation recycling and the reduction of

effluent discharge. Thus, 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, we strive

for honesty, fairness and integrity.

Company Facts

Company Name:

PepsiCo India Holdings Private Limited

Industry:

Food & Beverage / Catering / Restaurant

Type of Company:

Private Limited Company, Foreign Based Company

Location:



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DLF Corporate Park, S Block, Qutab Enclave, Phase III Gurgaon 122 002

History

Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCo

entered India in 1989 and in the span of a little more than a decade, has grown to

become the country’s largest selling soft drinks company as well as dominant player in

the snack food segment (Frito-Lay is the leader in the branded potato chips market). To

support the operations are the group’s 38 bottling plants in India, of which 16 are

company owned and 22 are franchisee owned.

Product and Services

Pe psiCo’s mission is to be the world’s premier consumer Products Company

focused on convenient foods and beverages. The company seeks to produce healthy

financial rewards to investors as it provides opportunities for growth and enrichment to

its employees, business partners and the communities in which it operates. PepsiCo now

has many global brands, which include: Pepsi-Cola, Diet Pepsi, Mountain Dew (Diet &

Regular), Gatorade, Walkers, Lays Potato Chips, Doritos Tortilla Chips, Tropicana Pure

Premium Orange Juice, 7-UP (Outside USA), Cheetos Cheese Flavoured Snacks,

Quaker Cereals, Aquafina Bottled Water, Ruffles Potato Chips, Mirinda, Tostitos

Tortilla Chips, Sierra Mist (Diet & Regular) and Fritos Corn Chips.

Culture and Values

OUR GUIDING PRINCIPLES:

We always strive to Care for customers, consumers and the world we live in. We

are driven by an intense, competitive spirit in the marketplace, but we direct this spirit

towards solutions that achieve a win for each of our constituents as well as a win for the

corporation. The test of our standards is that we must be able to personally endorse our

products without reservation and consume them ourselves. This principle extends to

every part of the business, from the purchasing of ingredients to the point where our

products reach the consumer’s hands.

Speak with truth and candor. We speak up, telling the whole picture, not just what is

convenient to achieving individual goals. In addition to being clear, honest and

accurate, we take responsibility to ensure our communications are understood.Balance

short term and long term. We make decisions that hold both short-term and long-term



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risks and benefits in balance over time. Without this balance, we cannot achieve the

goal of sustainable growth. Win with diversity and inclusion. We leverage a work

environment that embraces people with diverse backgrounds, traits and different ways

of thinking. This leads to innovation, the ability to identify new market opportunities,

all of which helps develop new products and drives our ability to sustain our

commitments to growth through empowered people.

Respect others and succeed together. This company is built on individual

excellence and personal accountability, but no one can achieve our goals by acting

alone. We need great people who also have the capability of working together, whether

in structured teams or informal collaboration. A spirit of fun, our respect for others and

the value we put on teamwork make us a company people enjoy being part of, and this

enables us to deliver world-class performance

PEPSI COLA INTERNATIONAL SRATEGY

Focus on Business growth

Target core brands

Satisfy Market Priorities



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Pepsi's Global Strategy

When the "You're in the Pepsi Generation"

advertising campaign launched in 1963, it may have been the first time a brand was

marketed primarily with an association to its consumers' aspirational attitudes. A

decidedly youth-oriented strategy, the campaign hoped to hook young Baby Boomers

while they were still young. In 1984 Pepsi launched another long-running campaign,

"The Choice of a New Generation," and in 1997 they debuted the "GeneratioNext"concept.

The newest campaign slogan, introduced this year, is "More Happy," which

definitely coincides with one concrete example of "more" in the packaging of Pepsi

products today — more designs. Many more. At least 35 distinct design ideas will grace

the packaging of Pepsi's cans and bottles this year alone, and this design strategy may

continue indefinitely.

Though not "generational" in word, the campaign certainly has a youth-oriented

feel with package designs, advertising, and websites that are fun and playful. PepsiCoworked closely with Peter Arnell and Arnell Group, based in New York City, to devise

a comprehensive new strategy that would connect with Pepsi's core consumers. Arnell

reinvented the Pepsi package as a meaningful and appealing communications tool for

the latest generation of youth that are not overwhelmed by media, music, or digital

distractions.

Experimental packaging

Arnell Group (a wholly-owned subsidiary of Omnicom Group) is a design and

brand creation firm specializing in experiential design and product innovation,

preferring to take complete branding and packaging projects from first concept to

complete market solutions. Peter Arnell, currently chairman and chief creative officer of

Arnell Group, formed the Arnell Group Innovation Lab in 1999 to place invention and

innovation at the forefront in a collaborative laboratory for corporations interested in



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designing for next generation products and experiences. Arnell applied many of his

philosophies in the Pepsi project.

Peter has taken a classic and turned it into a modern, innovative, and relevantmarketing and communications tool," said Ron Coughlin, chief marketing officer,

beverages, PepsiCo International. The new global look launched in February with eight

new package designs across cans and bottles, and the campaign is unfolding in a similar

manner overseas. The can designs roll out one at a time approximately three weeks

apart to enhance the anticipation of discovery and to pique the interest of collectors.

Product innovation today must be driven by deep consumer meaning and

connectivity," says Arnell. "It is less about unmet needs and more about giving people

what they haven't asked for but are dying to have. Using design to turn packaging into

personal consumer-powered media helps create the ultimate supportive and inspiring

relationship between Pepsi and its youth audience."

Thinking globally

The Pepsi can designs roll out one at a time, but the two-liter Pepsi bottles will

have three or four designs out at any given time.

Mike Doyle, creative director at Arnell Group, explains that there was a great

depth of exploration and research that was conducted before even beginning to

formulate a new Pepsi packaging strategy. PepsiCo and Arnell Group traveled

extensively to emerging markets to find key consumer product drivers for youth

cultures and to learn how the Pepsi brand was perceived in different countries.

They found, somewhat surprisingly, that there were very few differences around

the world in how consumers felt about Pepsi's fun, effervescent brand image. "The

brand equity is really consistent," says James Miller, marketing director, Pepsi-Cola

North America. They also found many consistencies in youth cultures around the world

in how today's youth is preoccupied with newness, discovery, and personalization of

their possessions. Miller describes the design campaign's goal as "sustainable

discovery," where the consumer audience is constantly intrigued and engaged.



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Designers at Arnell Group created the dozens of new and vibrant designs with

only a handful of blue and gray shades. Each design tells a story of sorts and each can

design has a unique website address on the side of the can. The first one on the "Your

Pepsi" can allows web users to design a digital billboard that will appear in Times

Square, and one coming shortly will allow users to mix their own music online.

"We redefined packaging as media in the marketplace for Pepsi," says Doyle. "It

speaks to youth in their language." Doyle believes that the designs succeed because they

are able to capture the audience's mind space. "The designs are reflecting back to the

culture instead of talking to the culture or imposing on it."

Reassuringly Pepsi

Pepsi actually asked their loyal consumers what brand elements would have to

remain so that they would be intuitively reassured that their favorite drinks were not

changing and the brand they trusted was still essentially the same. Their answer was

direct and consistent. Pepsi-lovers needed to see three elements for sure — the Pepsi

"globe," the iconic Pepsi blue, and the familiar tilted Pepsi capital letters.

Arnell Group updated the primary logo substantially and cleverly without really

redesigning its key elements. The most recent logo design had the Pepsi wordmark on

top of and slightly overlapping the iconic Pepsi red-white-and-blue "globe." On the

previous can design, the wordmark wrapped halfway around the can, and the globe was

off-center. The new cans and bottles have un-bundled the word and globe, making the

newly centered globe more of the hero, and the smaller Pepsi wordmark less prominent.

Television ad campaigns are reinforcing the globe-centric approach by featuring

a boulder-sized Pepsi globe in various settings careening to and fro like a pinball. In the

ads and on the front of most of the new packages is the reassuring tag line: "Same Pepsi

inside, new look outside." Miller explains that it is customary and important to reassure

consumers for at least six months in situations like this.

Miller also sees today's youth as demanding authenticity from the products they

come into contact with in their day-to-day experiences. The new Pepsi design strategy is

versatile because it can be authentic and stay current, and it could also make introducingspecial seasonal or regional designs more intriguing and less disruptive. "This is a new

way of using packaging as media," explains Miller. "The consumer is looking for more

variety and expecting more from their brands. They want to have a dialogue with their

favorite brands."



25


SHAREHOLDERS

Pepsi-co. Inc. (Symbol: Pep) shares are traded principally the New York Stock

Exchange in the United Stated. The company is also listed on the Amsterdam, Midwest,

Swiss, and Tokyo stock exchange. Pepsi Co has consistently paid cash dividends since

the corporation was founded.

CORPORATE CITIZENSHIP

Pepsi Co. believes that as a corporate citizen, it has a responsibility to contribute

to the quality of life in its communities. 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 employee

volunteer activities, to contributions of time, talent, and funds to programs of national

impact. Each division is responsible for its own growth program.

GROWTH GOALS

Set a winner's growth goals. If you act like no. 2, you will always be no.2

Employment

Hiring people who love to work and thrive on risk.

Target Core Brands

Put emphasis on the firmly established products and try to increase their market share.

Market Priorities

Establish market priorities and work towards achieving the maximum good for the

priorities.

PEPSI GLOBAL LOGO



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While taking to consumers some years back, Pepsi carried one exercise

consumers, "Take a piece of paper and draw what Pepsi means to you".

Interestingly, a lot of consumers especially kids drew the Pepsi's globe.

What is the globe? Well, its red, white and blue which says a lot of things.

Secondly, It has an incredible balance, modem kids says it has some incredible yin and

yang.

Thirdly, it has a quality of complete harmony.

Lastly, it speaks about openness and eternal youthfulness.

The biggest thing about the globe is that it is 3 dimensional logo, which no other brand

has.

In the Pepsi logo, blue colour has been underlined and used as a background colour.

Blue colour. Blue colour is associated with cold and refreshment. Blue Jeans are afavorite piece of clothing for the youth's worldwide. Thus the colour hits the 2

dimensions:

It supports the product quality-Refreshment

It reinforces consumer's affection for their favorite things.



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Our Mission, Values and Guiding Principles

VISION

As we stand at the crossroads of the new millennium, it's time to eradicate our

focus and energy single-mindedly to our Vision... The Vision to be the Best.

And what is that vision?

"To be the best consumer products company in the eyes of our suppliers, consumers,

employees and shareholders."



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"To become truly global company, by continuing to build a competitive and profitable

word wide refreshment beverage business."

The Pepsi challenge of the Millennium will be the test of the Best

The best in connecting with the customer and the consumer, the best in marketing, the

best in selling, the best in quality, the best in processes and the best in people and

teamwork.



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Mission

We aspire to make PepsiCo the world’s premier consumer Products Company,

focused on convenient foods 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, we strive to act with honesty, openness, fairness and integrity.

The behaviors that will help us achieve our mission are articulated in our Values

Statement.

Values

PepsiCo Values & Philosophy

Our Values & Philosophy are a

reflection of the socially and

environmentally responsible company



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We are committed to delivering sustained growth through empowered people acting

responsibly and building trust.

What It Means

Sustained Growth is fundamental to motivating and measuring our success. Our quest

for sustained growth stimulates innovation, places a value on results, and helps us

understand whether today's actions will contribute to our future. It is about the growth

of people and company performance. It prioritizes both making a difference and getting

things done .

Empowered People means we have the freedom to act and think in ways that we feel

will get the job done, while adhering to processes that ensure proper governance and

being mindful of company needs beyond our own.

Responsibility and Trust form the foundation for healthy growth. We hold

ourselves both personally and corporately accountable for everything we do. We must

earn the confidence others place in us as individuals and as a company. By acting as

good stewards of the resources entrusted to us, we strengthen that trust by walking the

talk and following through on our commitment to succeeding together.

Guiding Principles

We uphold our commitment with six guiding principles. We must always strive to: Care

for our customers,our consumers and the world we live in. We are driven

by the intense, competitive spirit of the marketplace, but we direct this spirit towardsolutions that benefit both our company and our constituents. Our success depends on a

thorough understanding of our customers, consumers and communities. To foster this

spirit of generosity, we go the extra mile to show we care.Sell only products we can be

proud of. The true test of our standards is our own ability to consume and personally

endorse the products we sell. Without reservation. Our confidence helps ensure the



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quality of our products, from the moment we purchase ingredients to the moment it

reaches the consumer's hand.

Speak with truth and candor. We tell the whole story, not just what's convenient to our

individual goals. In addition to being clear, honest and accurate, we are responsible for

ensuring our communications are understood. Balance short term and long term. In every

decision; we weigh both short-term and long-term risks and benefits. Maintaining this

balance helps sustain our growth and ensures our ideas and solutions are relevant both

now and in the future.

Win with diversity and inclusion. We embrace people with diverse backgrounds, traits

and ways of thinking. Our diversity brings new perspectives into the workplace and

encourages innovation, as well as the ability to identify new market opportunities.

Respect others and succeed together. Our mutual success depends on mutual respect,

inside and outside the company. It requires people who are capable of working together

as part of a team or informal collaboration. While our company is built on individual

excellence, we also recognize the importance and value of teamwork in turning our goals

into accomplishments.

COMMITMENT

Diversity isn't just the right thing to do. It's the right thing to do for our business,

and we're committed to making diversity and inclusion a way

of life at PepsiCo.

In our business, understanding different cultures is a major advantage. In fact, we

view diversity as a key to our future. Our brands appeal to an extraordinarily diverse

array of customers. And they are sold by an equally diverse group of retailers.

To truly understand the needs of our customers and consumers -- and succeed in the

marketplace -- PepsiCo must reflect that diversity in our employees, our suppliers and

in everything we do.

Offering a workplace where diversity is valued helps us build the top-quality workforce

so crucial to our success -- by enabling us to attract and retain great people from a wide

spectrum of backgrounds.

http://www.pepsico.com/index.cfm





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open communication, and candor among our employees, where we treat each other with

respect.

PepsiCo has been nationally recognized as one of the top places for women and

minorities to work. We were one of the first companies to begin hiring minorities in

professional positions, as far back as the 1940s. We were the first Fortune 500 company

to have an African-American vice president.

That commitment to diversity continues today. We place a great deal of emphasis

on personal integrity and believe long-term results, from real accomplishments, are the

only fair way to judge performance. We respect individual differences in culture,

ethnicity and color. PepsiCo is committed to equal opportunity for all employees and

applicants. We are committed to providing a workplace free from all forms of

discrimination. We respect the right of individuals to achieve professional and personal

balance in their lives.

PepsiCo's commitment is underlined by our current diversity initiatives. They

have been formulated to ensure that we attain our core value of diversity as acompetitive advantage.

Dedicated executives for managing diversity within our operating divisions.

Multi-year strategic plans for diversity are developed with the same vigor and goalsetting process as other business issues. Goals include diverse recruitment, improved

retention and fostering a more inclusive culture.

External Diversity Advisory Boards consisting of educators, politicians, practitioners

and customers to advise PepsiCo senior management on a variety of issues relating to

diverse audiences.

Annual employee performance reviews incorporating inclusion-related goals for all

managers.

Mandatory annual Affirmative Action Planning process.

Bi-annual organizational health survey incorporating diversity questions and requiring

analysis at the minority and female level. Senior management is held accountable forresults.

Corporate-sponsored multi-level program for training employees to work and manage in

an inclusive environment.

Employee networks to mentor and support diverse employees.



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SUSTAINABLE ADVANTAGE

Three major sustainable advantages give PepsiCo a competitive edge as we operate in

the global marketplace.

Three major sustainable advantages give PepsiCo a competitive edge as we operate in

the global marketplace:

1. Big, muscular brands;

2. Proven ability to innovate and create differentiated products; and

3. Powerful go-to-market systems.

Making it all work are our extraordinarily talented and dedicated people.

When we take these competitive advantages and invest in them with dollars generated

from top-line growth and cost-saving initiatives, we sustain a value cycle for our

shareholders.

In essence, investing in innovation fuels the building of our brands.

This in turn drives top-line growth.

Dollars from that top-line growth are strategically reinvested back into new products

and other innovation, along with cost-savings projects.

Thus, the cycle continues.





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Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo. Mrs. Nooyi

leads one of the world’s largest convenient food and beverage companies, with 2007

annual revenues of more than $39 billion. The company operates in nearly 200

countries, and employs more than 185,000 people worldwide. Its principal businesses

include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana

juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1

billion or more each in annual retailsales.

PepsiCo’s commitment to sustainable growth, defined by Mrs. Nooyi as Performance

with Purpose is focused on generating healthy financial returns while giving back to

communities the company serves. This includes meeting consumer needs for a spectrum

of convenient foods and beverages, replenishing the environment through water, energy

and packaging initiatives, and supporting its employees through a diverse and

Inclusive environment that recruits and retains world-class talent. The company is listed

on the Dow Jones North America Sustainability Index. Mrs. Nooyi was named

President and CEO on October 1, 2006, and assumed the role of Chairman on May 2,

2007. She has directed the company's global strategy for over a decade and was the

primary architect of PepsiCo's restructuring, including the divestiture of its restaurants

into the successful YUM! Brands, Inc., the spin-off and public offering of company-

owned bottling operations into anchor bottler Pepsi Bottling Group (PBG), acquiring

Tropicana, and the merger with Quaker Oats that brought the vital Quaker and Gatorade

businesses to PepsiCo. Recently, she has been driving critical cross-business initiatives

to enhance operations and enable PepsiCo to meet the changing needs of consumers and

retailers. Prior to becoming CEO, Mrs. Nooyi served as President and Chief Financial

Officer since 2001, when she was also named to PepsiCo's board of directors. In this

position, she was responsible for PepsiCo’s corporate functions, including finance,

strategy, business process optimization, corporate platforms and innovation,

procurement, investor relations and information technology. Between February 2000

and April 2001, Mrs. Nooyi was Senior Vice President and Chief Financial Officer of



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PepsiCo. Between 1996 and 1999, Mrs. Nooyi was Senior Vice President of Corporate

Strategy and Development. Before joining PepsiCo in 1994, Mrs. Nooyi spent four

years as Senior Vice President of Strategy, and Strategic Marketing for A sea Brown

Boveri. She was part of the top management team responsible for the company's U.S.

business as well as its worldwide industrial businesses, generating about one-third of

ABB's $30 billion in global sales. Between 1986 and 1990, Mrs. Nooyi worked for

Motorola, where she was Vice President and Director of Corporate Strategy and

Planning, having joined the company in 1986 as the business development executive for

its automotive and industrial electronic group. Prior to Motorola, she spent six years

directing international corporate strategy projects at the Boston Consulting Group. Her

clients ranged from textiles and consumer goods companies to retailers and specialty

chemicals producers. Mrs. Nooyi began her career in India, where she held product

manager positions at Johnson & Johnson and at Mettur Beardsell, Ltd., a textile firm. In

addition to being a member of the PepsiCo board of directors, Mrs. Nooyi serves as a

member of the boards of the Federal Reserve Bank of New York, the InternationalRescue Committee and Lincoln Center for the Performing Arts in New York City. She

is a Successor Fellow of Yale Corporation, member of the Board of Trustees of

Eisenhower Fellowships, a member of the Executive Committee of the Trilateral

Commission and currently serves as Chairman of the US-India Business Council.She

holds a BS from Madras Christian College in Madras, an MBA from the Indian Institute

of Management in Calcutta and a Master of Public and Private Management from Yale

University. Mrs. Nooyi is married and has two daughters.27-April-08.Massimo F.

d’Amore was named Chief Executive Officer of PepsiCo Americas Beverages in

November 2007. PepsiCo Americas Beverages has a beverage portfolio including

Pepsi-Cola North America, Gatorade, Tropicana, all of PepsiCo’s Latin American beverage businesses, and its North America PepsiCo Food Service division.

Previously, Mr. d’Amore was Executive Vice President Commercial for PepsiCo

International, a position he assumed in November, 2005, after serving as President,

Latin America Region for 4 years and SVP, Corporate Strategy & Development for

PepsiCo for 2 years. Mr. d’ Amore was also Senior Vice President and Chief Marketing

Officer for Pepsi-Cola International (PCI), a position he assumed in 1998 and Business

Unit General Manager (BUGM),Turkey/Centra Asia since1999. Prior to PepsiCo, Mr.

d’Amore had a 15-year international career with Procter & Gamble in Operations,

Marketing and General Management in Europe and NorthA frica.Mr. d’Amore is a

native of Italy and an engineering graduate from the Swiss Polytechnic Institute in

Lausanne, where he also earned a Master of Science Degree. He has lived in Italy,

Switzerland, Germany, Belgium, Morocco, France and for the last 13 years in the U.S.

He is fluent in English, Italian and French; and has a working command of Spanish and

German. He has three children and resides in Westchester.

PepsiCo is one of the world’s largest convenient food and beverage companies, with



37


2007 revenues of more than $39 billion. The company operates in nearly 200 countries,

and employs more than 185,000 people worldwide. The PepsiCo portfolio includes 18

brands that generate $1 billion or more each in annual retail sales.

PepsiCo India’s commitment to Performance with Purpose

Performance with Purpose articulates PepsiCo India's belief that its businesses are

intrinsically connected to the community and world that surrounds it. Performance with

Purpose is about delivering more than financial performance, it’s about staying

committed to continuously giving back to the community and helping enrich society.

To deliver on this commitment, PepsiCo continues to build on its strong foundation of

achievements and scale up its initiatives while focusing on the following 4 critical areas

that are linked to its business and where it can have the most impact.

Replenishing water

PepsiCo India continues to replenish water and aims to achieve positive water balance

by 2009, which means it is committed to saving and recharging more water than it uses

in its beverage plants

Waste to Wealth

PepsiCo India continues to convert Waste to Wealth,

to make cities cleaner. This award winning initiative has established Zero Solid Waste

centers that benefit more than 2,00,000 community members throughout the country



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Partnership with Farmers

PepsiCo India’s Agri-partnerships with farmers

help more than 15,000 farmers across the country earn more...

Healthy Kids

PepsiCo India stays committed to the health

and well-being of kids. It will continue to provide children with a diverse, healthful and

fun portfolio, while simultaneously encouraging active lifestyle by expanding its Get

Active program for kids, especially for school going children.

THE INDIAN SOFT DRINK HISTORY

Gold Spot is considered as the first branded soft drink in India it was introduced

by Parle in early forties. Coca-Cola was the foreign soft drink to be introduced in Indian

markets. The Coca-Cola Company entered India in the early fifties, when four bottling

plants were set up at Mumbai, Kolkata, Delhi, and Kanpur. Coca-Cola enjoyed a good

beginning and dominated the market. Parle exports private limited, the major domestic

player, and later in 1970 introduced ―Limca‖ lemon soft drink. Before Limca’s they had

attentively introduced ―cola Pepino‖ which was soon withdrawn from the market

following the confrontation with Coca- Cola.

In July 1977 Coca-Cola left India following a public dispute over shareholding

Structure and imports permits. Coca-Cola left a big gap, which was filled by several

companies who came forward pushing different brands in market. Parle Products

introduced their Cola ―Thumps Up‖, pure drinks introduced



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―Double Seven‖ ―Thrill‖, ―Rush‖, ―Sprint‖. At the same time various regional soft

brands played an independent role in their respective territories like ―Duke‖,

―mangola‖.

After coke was asked to leave India Pepsi began to lay plans to enter this huge market.

Pepsi started its operations in April 1989 for beverages snack foods and export business.

In 1990 first Pepsi Cola was produced in India. In the next year 1991, production of

Mirinda and 7up started, the production of Slice Teem, Fountain Pepsi started in 1993.

Coca-Cola came back again in India in October 1993 and was launched in Agra.It

joined hands with Parle Exports Pvt. Ltd. To enter India and gradually took over the

same company. The nineties also saw a new foreign entrant Cadbury Schweppes that

rolled out Canada dry and Crush in metropolitan cities. Pepsi entered the cloudy lemon

market category by launching its Mirinda lemon in 1998.

In May 1999 a notification, presented the prevention of food adulteration (fourth

amendment) Rules 1999, allowed the use of the artificial Sweeteners, aspartame and

acesulfame potassium in The formulation of soft drinks-which was what made the entry

of Diet Pepsi and Diet Coke. Coca-Cola also rolled out its popular clear lemon drink

Sprite in India in the same year 1999.

Soft drinks can trace their history back to the mineral water found in springs.

Soft drinks can trace their history back to the mineral water found in natural

springs. Bathing in natural springs has long been considered a healthy thing to do; and

mineral water was said to have curative powers. Scientists soon discovered that gascarbonium or carbon dioxide was behind the bubbles in natural mineral water.

The first marketed soft drinks (non-carbonated) appeared in the 17th century.

They were made from water and lemon juice sweetened with honey. In 1676, the

Compagnie de Limonadiers of Paris were granted a monopoly for the sale of lemonade

soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups

of the soft drink to thirsty Parisians.

Joseph Priestley

In 1767, the first drinkable man-made glass of carbonated water was created byEnglishmen Doctor Joseph Priestley.

Three years later, Swedish chemist Torbern Bergman invented a generating

apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's

apparatus allowed imitation mineral water to be produced in large amounts.

http://inventors.about.com/library/inventors/blJosephPriestley.htm






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John Mathews

In 1810, the first United States patent was issued for the "means of mass

manufacture of imitation mineral waters" to Simons and Rundell of Charleston, South

Carolina. However, carbonated beverages did not achieve great popularity in America

until 1832, when John Mathews invented his apparatus for the making carbonated

water. John Mathews then mass-manufactured his apparatus for sale to soda fountain

owners.

HEALTH PROPERTIES OF MINERAL WATER

The drinking of either natural or artificial mineral water was considered a

healthy practice. The American pharmacists selling mineral waters began to add

medicinal and flavorful herbs to unflavored mineral water.

They used birch bark, dandelion, sarsaparilla, and fruit extracts. Some historiansconsider that the first flavored carbonated soft drink was that made in 1807 by Doctor

Philip Syng Physick of Philadelphia. Early American pharmacies with soda fountains

became a popular part of culture. The customers soon wanted to take their "health"

drinks home with them and a soft drink bottling industry grew from consumer demand.

The Soft Drink Bottling Industry

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the

carbonated drink bottle tops during the early days of the bottling industry. Carbonated

drink bottles are under a lot of pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In 1892, the "Crown

Cork Bottle Seal" was patented by William Painter, a Baltimore machine shop operator.

It was the first very successful method of keeping the bubbles in the bottle.

Automatic Production of Glass Bottles

In 1899, the first patent was issued for a glass-blowing machine for the

automatic production of glass bottles. Earlier glass bottles had all been hand-blown.

Four years later, the new bottle-blowing machine was in operation. It was first operated

by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few

years, glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.

Ninety years after the invention of what become one of the most favored drinks

globally in 1988. Pepsi entered India flanged with heavy resources and riding the winds

of change of a newly opened economy. First, Pepsi has only franchise unit. Pepsi gave

http://inventors.about.com/od/mstartinventors/a/John_Mathews.htm


http://inventors.about.com/od/sstartinventions/a/soda_fountain.htm






41


his concentrate to small factory and they make beverage.

In 1988, Pepsi set up its offices in India. In this company Pepsi operates as

PEPSI Foods Pepsi Co. India Holdings and Pepsi India marketing.

The mission was to change the tastes and life style of a common Indian, whoidentified soft drinks and beverages as a few available cold drinks, squashes and

concentrates.

When it came to a refreshing drink conservative consumers would back to

traditional nimboo pani, jaljeeram lassi etc.

Although India has a per capita consumption as low as 3 per person as compared

to 400 in USm India has one of the largest number of potential consumers in a world

with a population of an arab, Every Indian guzzles 27 bottles of soft drink every year,

an increase of one bottle per capita consumption would mean stating 900 bottles extra.

India soft drink is of worth RS. 1800 crores with annual growth at the rate of20% to

25%.

All the activities of Pepsi Foods Pepsi Co, India Holdings and Pepsi India

Marketing Company are controlled by business Unit (BU) located at GURGAON. This

BU is divided into various marketing units (MU's). All except the North and Market

Units have common borders with states comprising them.

The market units demarcate the areas, which are "Coboised" i.e.Have Company

owned bottling operations(COBO). In these units there are company owned bottling

plants while in other areas the operations are run by a franchisee these areas are referred

to as Fanchisee Owned Bottling Operations (FOBO'S) and some and in some others

Joint Venture operate.

COBO - In the COBO, the company has total control of the decisions and

implementations undertaken, but for this the company has to invest its own money.

FOBO - The FOBO’S are independent to tak e their own marketing and operational

decisions with no major interference form the company.

The FOBO's are supplied the concentrate from the company and they have to

run the show, there after. Pepsi maintains ownership of the trademarks and is primarily

responsible for ownership in a local bottling operation. This helps Pepsi maintain strong

trademark on the other party's resource and expertise. The PCI workflow concentrates



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on Selling, Making and Delivering Pepsi- Cola.

Pepsi -Cola is a company with a "Low margin, high volume business" Pepsi Co.

deals in the carbonated Soft Drinks (CSD's) Market.

CSD's fall in two categories-Cola and flavors. Coals concentrate on Pepsiwhereas flavors deal with orange and Lemon. In India the flavors are Mirinda Orange

and Lime. Slice is a fruit Juice concentrate based Drink.

Starting out in 1989, with that name of "Lehar Pepsi", the company has grown

leaps and bounds ever since with competition increasing with reentry of coke a few

years ago. Thanks to an early lead and a better understanding of the market, India

remains amounts the handful of markets worldwide where Pepsi is ahead of its archival

Coke.

Despite being the global Pepsi has build its success on meeting out the Indian

customer's needs. Pepsi has made its brand synchronize with localized events and

traditions. Pepsi maintained its top of mind awareness with roadside signage and

reminders. The partner type relationship with bottles, FOBOs as well as COBOs cover

most of the company adequacy.

One of the strongest weapons in Pepsi's armory is the flexibility it has

empowered its people with. Ht Pepsi every employee, may be a manager of a salesman,

have an authority to take whatever steps he or she feels will make the consumers aware

of the brand and increase its consumption. Thus Pepsi believed in establishing and

nurturing creditability of the salesman and making the joint commitment to grow

business in accounts, All these factors together led to a high froth in the Indian market

and constantly increasing market share.



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PRODUCT WISE COMPARISON OF PEPSI WITH COMPETITOR COCA-

COLA:

Pepsi Coke, Thumps Up

Pepsi Aha

Mirinda ( orange+lemon+apple) Fanta(orange),Limca

Teem Soda

Slice Maaja

7UP Sprite

Mountain dew Kinley(soda)

Diet Pepsi Diet Coke

Aquafina(mineral water) Kinley (mineral water)

Distribution Channel and strategies

―Marketing channels are sets of interdependent organizations involved in the process of

making a product or service available for use or consumption‖

Philip Kotler

Distribution (Place) Strategies

● Product availability where and when customers want them.

● Involves all activities from raw materials to finished products

Basic Channels of Distribution



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Distribution Objective

Minimize total distribution costs for a given service output

Determine the target segments and the best channels for each segment

Objectives may vary with product characteristics

e.g. perishables, bulky products, non-standard items, products requiring installation &

maintenance

Manufacturers/ roducts

Agents/brokers

Wholesalers/distributors

RetailersRetailer

Consumers and organizational end users

Place





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Output

Supply

1. Determine inventory of ingredients to order new supplies.

2. Maintain purified water supply so ensure continuance of production.

Manufacturing

1. Ensure proper packaging to ensure quality and freshness in products.

2. Maintain quick local distribution to ensure freshness and quality products.

Sales

1. Keep positive distribution levels to all sales outlets to maintain positive sales.

2. Meet any new demand or competition with products and consumer needs.

DISTRIBUTION CHANNELS (Pepsi)

There are two marketing channels that involve in the transfer of product from

the producer to the consumer. The intermediaries involved in the transfer are

distributors and retailers.

THE DIFFERENT DISTRIBUTION CHANNELS USED:-

There are basically three distribution channels used. The distribution channels’ are

elected as they are shortest and cheapest, that how easily and timely transportation could

be done and the transportation cost could be the least.

The distribution channels are-

E- The fastest and the cheapest channel.

C- The slowest and the most costly distribution channel.

G- The average distribution channel.



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PepsiCo is adopting E distribution channel.

DISTRIBUTORS

Distributors are appointed agents of the company who make orders to the company

by paying in advance through drafts, stock the products in their go-downs and supply

them to outlets through their fleet of delivery was and a team of salesmen and drivers.

They are allowed to sell to company's product to the retailers in a specified area. The

company divides this area into routes. Each route is covered by one unit i.e. one de

livery van, one salesman one driver, one helper etc. These units and go-down are their

main investment. Distributors have to invest in empty bottles and crates too, so t hat

they can maintain a specified quantity of reserve stock and facilitate the quick rotation

of glass crates.

The company evaluates its distributors at the end of the year and makes plans for

the next year. Company fixes the targets for each distributor according to market size,

last year’s sales, potential growth assumption based on deposit of em pties and

installation of coolers at outlets. Distributors are awarded with a fair margin of Rs. 10

per crate for their service. This margin could be increased for the sale above the targets,

company offers are met with distributors before appointing them. Distributor

comployning with many schemes and contests for its customers for pushing different

brands and giving various services. Company also offers many gifts like, briefcase, and

handbags. T-shirts, caps etc. to encourage the distributors. If distributor does not agreewith the conditions of these agreement company may reduce the area of distributor or

may even terminate the relationship.

RETAILERS

The sale of particular soft drinks depends a lot entirely on retailer’s wish. Like if he

does not keep Aquafina and if his shop is at the prime location then certainly the

customer with turn towards other cola drinks like Bisleri, Bailey ,Kinley etc. This allgoes to prove that retailer is king. So retailers require special focus from the company.

Pepsi Co. helps the retailers to serve its customer better by providing good margin to

them for storing its product using merchandising to improve in-store product display,

installing cooling equipment in outlets to make the product ready to drink and offering

different promotion schemes to them time to time to push different brands, Pepsi Co.

Provides a fair margin of Rs. 24 per crate to the retailers.



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CUSTOMER SERVICE DEPARTMENT

Customer Service is a support function to sales and marketing Department and is

concerned with effectively dealing with all customer complaints

This starts from:

Ensuring Receipt, Documentation and Follow Up of all complaints to be take care

of within a specified time in order to achieve the ensure Customer (retailer) distributor

and consumer Satisfaction. The Customer complains directly through phone or pager or

through the sales team visiting them. Types of Complaints handled are related to:

Consumer

Signage and Schemes

Supply and Service

Quality of Product

Cooling Equipment

A Customer Service executive who in turn co-ordinates with five Customer Service

Representative positioned in the five sales divisions in UP-Allahabad, Kanpur,

Gorakhpur, ALLAHABAD and Bareilly heads customer service department at the unit

office. These Customer Service Representative handle customer service functions in

their respective territories.

MARKETING DEPARTMENT

Marketing department is mainly concerned with promoting "TOM" i.e.‖ Top of the

Mind Awareness for Pepsi as it is a consumer oriented organization. It performs the

following functions to build consumer and customer preference.

Signage: This includes putting up of glow gings, banners, wall paintings, hoardings,

kiosks etc.

Promotions: This includes ad campaigns, sales promotions, new packages and brand

launches. Events this includes sponsoring events at national, state, district and city level

e.g. sports tournaments, rock shows Musical Nights, Dance competitions, School and



49


college annual festivals etc.

All these activities are carried out by the unit office with the help of guidelines

issued by the BU in the form of an annual marketing calendar and budget.

Marketing department at the Unit Office is headed by a Marketing Manager andhas three Marketing Executives. The marketing department co ordinates with the five

sale division in UP-Allahabad, Kanpur, ALLAHABAD, Goarakhpur and Bareilly to

implements the various marketing programs

SALES AND MARKETING HIERARCHY OF PEPSICO INDIA.

MUM

UM

TDM MDM

MDC ADC

CE ME

UM

SALESPERSONS MARKETING

ASSISTANTS



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MUM-

Marketing unit manager, In charge of specific zones (e.g. north, south, east, west) and

report to the corporate office.

UM-

In charge of day to day operations and supervision of all the functions within the

organizations including operations, logistics, sales and distribution, marketing. The Unit

Manager reports to the MUM.

TDM- Territory Development Manager , TDM is the in charge of the sales and distribution

network of a particular territory within a zone. Responsible for the daily, monthly and

annual sales within the territory decides the daily schemes for products and incentives for

salespersons.

MDM –

Marketing Development Manager, MDM is responsible for all the marketing activities

and their effectiveness within a territory.Decides the format and time frame of the

marketing and promotional activities and the incentives given to the retailers.

ADC –

Area Development Coordinator, Reports to the TDM, and is in charge of a C & F center

and the distributor point in the area. He is directly responsible for any issues in the area

and is supposed to ensure the smooth functioning of the entire sales and distribution

network in the area.

MDC – Marketing Development Coordinator, Reports to MDM, and is in charge of carrying out

all the marketing activities in the area. He is responsible for the execution and success of

marketing and promotional activities.



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CE –

Customer Executive,Reports to the ADC and is in charge of the salespersons. He is

required to visit the market and accompany every salesperson as frequently as possible.

He is the first person to get information about the market / area and is the first contact if

the salespersons or retailers face issue. Responsible for assigning and achieving daily

sales target given to the salespersons

ME –

Marketing Executive, Reports to the MDC and is responsible for the daily functioning of

the marketing activities in the including awareness of promotions in the market and the

response in the market

Salesperson-

Who sell the products, are responsible for acquiring new customers, and retain the old

ones. Their work also includes informing the retailers about the promotions and any new

scheme launched.

Marketing Assistants-

Reports to the ME and is responsible for the distribution and usage of the displays and

boards in the area. Also has to check whether retailers are following the guidelines of the

company regarding promotional displays, other displays and displays in the Vigicoolers.They report to the ME.



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ADVERTISING & PUBLICITY

Pepsi Co. is one of the biggest and spenders in India. It is also one of the biggest global

ad spenders. It has long a list of endorsers from pop star Ricky martin to file stars

Shahrukh Khan, Amitabh Bacchan etc. & Cricket stars Sachin Tendulkar, V.V.S

Laxman, Harbhajan Singh etc. Hindustan Thompsom Associates, the big gets advertising

agency of India has the account of Pepsi Co. is known for its board cast advertising but it

also spends a lot in non board cast advertising i.e. hoarding, banners, posters stickers,specialties, hangar,dealer board, glow signboards, wall painting and news paper. The

expenses on these type of advertising are made at territory or unit level. ALLAHABAD

territory has assigned two local advertising agencies R.D. Associates and Krishna for its

territorial advertising.

http://en.wikipedia.org/wiki/File:Pepsicup.jpg



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RESEARCH METHODOLOGY

INTRODUCTION

Business research can be defined as a systematic and objective process of

gathering, recording, and analyzing data that provides information to guide business

decisions. It is used either to understand market trends, to find the optimal marketing

mix, to devise effective HR policies, or to find the best investment options.

In the present fast track business environment marked by cutthroat competition,

many organizations rely on business research to gain a competitive advantage and

greater market share. A good research study helps an organization understand

processes, products, customers, markets and competition and to develop policies,

strategies, and tactics that are most likely to succeed.

ROLE OF BUSINESS RESEARCH IN DECISION-MAKING

For effective planning and implementation of business decisions, accurate

information about the internal and external business environments is of primary

importance. The key objective of business research is to provide accurate, relevant, and

timely information to the top management, so that they can make effective decisions.



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The business decision-making process in an organization going through the

following key interrelated stages:

Problem/opportunity Identification

Problem/opportunity prioritization and selection

Problem/opportunity resolution

Implementing the selected course of action

Business Research helps the management in each of the stages by providing useful and

timely information

RESEARCH OBJECTIVE

Study the distribution network of Pepsi

To comparatively analyze the stock of Pepsi and coke with retailers of Pepsi.

To study the retailers satisfaction.

To find out the way to enhance the sale of Pepsi.

POPULATION OF SURVEY-

The population was of 200retailers but the sample selected to make the study was of 150

to find the result. The study aimed to find the demand of the product of PepsiCo in

various areas assigned

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to the research purpose which

economy in procedure. Main characteristics of research design can be summarized in

two words-

1- Anticipation

2- Specification

o Sample size 150

Retailers

o Sample unit dealers &

consumer.



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My research design is descriptive,

In my research, I conducted a market Survey of mapping the width and depth of

various brands of PepsiCo.

ROUTE MARKETING-

Outlets coming under this market cater to the needs of those customers who areengaged in shopping, eating out in restaurants, going to and from work, in

amusement centers etc. In simpler words this marketing is what we call the

bazaar.

1. 1. CIVIL LINES

2. RAJAPUR

3. SELUM SARAI

4. GOVINDPUR

5. TELIRGANJ

6. NEW CANTT

7. JHONSTANGANJ

8. LUKERGANJ

9. TAGORE TOWN

10. KHULDABAD

11. KARELI

12. DARYIBAD

13. KATRA

14. MUMFORDGANJ15. MUIRABAD.



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TYPE OF RESEARCH:

The basic types of research are as follows:

1. Descriptive research:

The major purpose of this research is description of the state of affairs as it exist at

present.

2. Analytical Research:

In this research, the researcher has to use facts or information already available these to

make, and analyze these to make a critical evaluation of the material.

3. Applied research:

It aims and finding a solution for an immediate problem facing a society or an

industry/business organization.

4. Fundamental research:

It mainly concerned with generalization & with the formulation of a theory

5. Quantitative Research:

It is based on the measurement of quantity or amount. It is applicable to phenomena that

can be expressed in terms of quantity.

6. Qualitative Research:



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It is concerned with the qualitative phenomenon, i.e., phenomena relating to or

involving or king.

7. Conceptual Research:

It is related to some abstract ideas or theory.

8. Empirical Research:

It is data- based research, coming with a conclusions which are Capable of being

verified by the observation and experiment.

9. Diagnostic Research:

Such a research follow case – study method or in depth approaches to reach the basic

casual relation.

10. Exploratory Research:

The objective of this research is the development of hypothesis rather than their testing.

Census Method

In this analysis Marketer have used census method instead of Sampling Method.

Marketer have surveyed all retailers which do not sale Pepsi or sell very less and come

under Shukla Sales Distributor at Sitapur Road , Allahabad.





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7. Preparing and presenting the Research Report

Source of Information

In our research we have made use of both primary and secondary data.

PRIMARY DATA:

Personal interview

Surveys

But here, only survey method of data collection is preferred which is very suitable to

reach the researchers motto.

SECONDARY DATA:

Article published in internet.

Internet.

SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment. It is

the first stage of planning and helps marketers to focus on key issues. SWOT stands for

strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal

factors. Opportunities and threats are external factors



60


S Things the company does well.

W Things the company does not do well.

O Conditions in the external environment

that favor strengths.

TConditions in the external environmentthat do not relate to existing strengths or

Internal

External



61


OOppppoor r ttuunniittiieess AAnndd

TThhr r eeaattss ((EEXXTTEERRNNAALL))

●Social

●Demographic

●Economic

●Technological

●Political/Legal

●Competitive

● Production Costs

● Marketing Skills

● Employee Capabilities

● Financial Resources

● Available Technology

● Company/Brand Image

SSttr r eennggtthhss aanndd

WWeeaakknneesssseess ( ( I I N N T T E E R R N N AALL ) )



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Distribution channel-

Channel 1 Manufacturer……………………………………………Consumer

Channel 2 Manufacturer……………Retailer……………………Consumer

Channel 3

Manufacturer……...Wholesaler…… Retailer…Consumer

Channel 4 Manufacture…….Wholesaler……Jobber…Retailer……Consume

STATISTICAL REPRESENTATION OF SURVEY-

Q.1 Market share of Pepsi and Coca Cola.

Finding-PepsiCo has covered 52% of market share while coke has covered 48% shre of

entire market

52%

48%

Market Share of Pepsi &Coca

Cola in Percentage

Pepsi

Coca Cola



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Q. 2 Market share of ice box comparison.

Findings:

In ice box comparison Pepsi is far behind from coke as it has only 38%share while coke

has 62% share.

Ice Box comparisons

Pepsi

Coca-cola



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Q.3 How many racks are available with dealers.

Findings

Pepsi lead in the distribution of racks to the dealers as it has 55% while that of coke is

45%.

Rack comparison

Pepsi

Coca-cola



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Q.4 How many are having glow sign.

Findings

Pepsi lags behind coke in the glow sign distribution as it has only 42% share.

Glow sign comparison

Pepsi

Coca-cola



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Q.5 Visi Share.

Findings

Out of the 150 dealers the 58 have 400 Ltr ,29 have220 Ltr,18 of165 Ltr15of 65 Ltr,20 of

320Ltr,4 of 65Ltr and 6of 1000Ltr.

VISI COOLER SHARE

400 Lt

220 Ltr

165 Ltr

110 LTR

320 Ltr

65 Ltr

1000 Ltr



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The pepsi visi cooler are not available with 80 dealers 30 have 400ltr, 10 have 220ltr,12

have 165,5 have 110ltr,8 have 320ltr,1 have 65ltr,4 have1000ltr.

Pepsi Visi Cooler

400 Ltr

220 Ltr

165 Ltr

110 Ltr

320 Ltr

65 Ltr

1000 Ltr

NA



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FINDINGS

Out of 150 dealers 70 does not posses visi coolers 28 have 400 ltr, 19 have 220 ltr,6have

165ltr,10 have110 Ltr,12 have320ltr,3 have65,2 have 1000ltr.

Coke Visi Cooler

400 Ltr

220 Ltr

165 Ltr

110 Ltr

320 Ltr

65 Ltr

1000 Ltr

NA



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Q6. Market analysis of Pepsi assets with dealers.

Market position of 7up as compared to sprite.

Pepsi assets being7 up is being faced with sprite as its main rival has max. number of

share in the market .

Sales

7up

Sprite



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Q.7 Market share of mountain dew as compared with sprite.

Finding-

Mountain dew is being the favorite drink of the youngsters in the city of Allahabad andthe next being that of sprite liked by them.

Sales

Mountain dew

Sprite



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SALES AND DISTRIBUTION NETWORK OF PEPSICO INDIA:-

PepsiCo is adopting the

COMPANY

COBO FOBO

WAREHOUSE

C & F DISTRIBUTOR

WHOLESALER SLUMS RETAILER

RETAILER CUSTOMER

CUSTOMER

SALESMEN SALESMEN



72

72

Project Analysis

Project

“Each Dealer Survey To Map Width And Depth Of Various Brands Of PepsiCo In

Allahabad”

Description

We were required to find out those outlets which are either not selling Pepsi or selling in very

less amount. Region for the project was Allahabad region. This project was aimed at finding

out the shops, which were not promoting Pepsi and selling competitor brands. It was also

aimed at knowing the reason for anti Pepsi behavior of outlets in the region, their

requirements from company and willingness to sell Pepsi brands.

Purpose

Main purpose for this project was to make management aware of the total no. Of outlets in

their region which were not selling Pepsi. It was also to plan their new course of action

keeping in mind the current market position of Pepsi as well as of Coke. This was viewing

the market share of Pepsi in comparison of Coke. This report gives information to

management about the outlets uncovered by Pepsi and their requirements to the company.

The marketing of its brand is excellent and is very successful to reach its brand in

Allahabad. Overall the market of PepsiCo brand is good in comparison with Coke. There are

very few outlets which are not selling Pepsi brands.

DETAILS OF THE SURVEY

The trainee was required to visit all the outlets in the specified area of his distributor,

which was told to us by the CE concerned. We were required to be given the route map of the

specified area. The area was to thoroughly survey without leaving any of the outlets.

Initially the survey was to start with the route vehicle of the distributor of that area. Two

days had to be devoted with the route vehicle and noting down the name of the outlets and

other particulars where ever their route vehicle visited the outlets. It was to get familiarized

with the area. The next couple of days had to be surveyed individually in the same area trying

to find out those outlets in that area which was not attended by the route vehicle. This was

how the whole survey was to be conducted.

The main aim of this survey was to find out those outlets which are either new or remain

unnoticed/unattended by the route vehicle or where the Pepsi products were not reaching.



73

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For Pepsi these outlets are going to be the main focus of the survey. It was to know the

exact strength of outlets of the area which were not selling Pepsi or selling very less. we were

required to collect the following information from each outlet he surveyed.

Name of the outlets

Address of the outlets

Status of the outlet Cooling Equipment

Sale of the outlet

Brands on sale

Requirement of outlet

Willingness to sale pepsi.

Reason for anti Pepsi

Name of the outlets:

We had to note down the name of the outlet visited

Address of the outlet:

Complete address of the outlets was to be noted by the trainee

Sale of the outlet

Sale of the outlet was to be noted on per day basis.

Brands on sale

Check out the brands available at the outlet.

Requirement of outlets

Ask what the shopkeeper wants from the Company.

Willingness to sale Pepsi

To know if shopkeeper wants to sell Pepsi or not.





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SUGGESTION REGARDING IMPROVEMENT

CE needs to personally contact with retailers who help in knowing the activities of the

distributors as well as help in Promoting the business.

It should focus its attention to the untapped market where it can considerably increase its

market share.

Distributors should from time to time take the pain of finding out the requirement of retailersand the problem they are facing.

The process of visi installation should be made easy.

There should attention be paid to the repairing of visi out of order.

Pepsi should work hard more to increase its market share in some areas like Pritam nagar

Road, Allahabad etc.

Advertisement and publicity in the untapped market by way of signage, racks, paintings,

banners, hoarding etc. should be expanded.

Margin to retailers should be taken care of and may be possible ought to be increased without

increasing the overall price. Distributors should check the working of route agents or salesman on regular basis.

Shortages of the product during the summer season if possible should be reduced. It

communicates bad message among the retailers as well as the consumers.

Signages & merchandise should be installed against the sale performance of the outlets as

well as the need of the market.

Survey by the top officials should be made in the un tapped areas to access the real situation

and should be done as a surprise visit instead of planned visit.



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LIMITATIONS OF STUDY

It is well known fact that constraint and limitations are bound to be present in any

study do this also has some limitation as:-

1- The survey has been conducted only in few areas of Allahabad due to limited time.

2- It is very difficult to make people understand the significance of conducting survey.

3- Lack of retailer’s interest to answer the questions is also an important limitation.

4- Lack of knowledge of area has affected the research.

5- the information given by the client may be false and biased.

CONCLUSON

“Each dealer survey to map width and depth of various brands of PepsiCo in India”

The summer training project was focused on ―‖

Pepsi is superior brand than coca-cola but from some time its market share has come

down due to various reasons. In India the company is running with very fast speed. The

popularity of Pepsi is better than coke. It has bright future.

It has democratic and communicative style of functioning.

Conclusion has been drawn:-

Proper approach to the retailers at the time of tie ups is required.

The retailer’s satisfaction is low.

Company does not provide schemes properly.

No provision for regular replacement of damage of bottles.

Many complains of retailers does not listen by the company.

Many retailers want monopoly but company does not provide.





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a) Average b) Good c) Very good

QUESTION- 8 What is the reason of being anti Pepsi?

a) Visi not provided b) Tie up with Coke/ coke approached first

c) Pepsi services not suits d) Schemes are not as good as Coke’s

BIBLOGRAPHY

Books:

Marketing Management – ―Philip Kotler‖

Research Methodology – ―C.R. Kothari‖

Web Sites

www.google.com

www.pepsico.com

www.coca-cola.com

www.ask.com

www.wikipedia.org

http://www.google.com/


http://www.pepsico.com/


http://www.coca-cola.com/


http://www.ask.com/

http://www.ask.com/

http://www.wikipedia.org/



http://www.ask.com/




133975140 PepsiCo Project

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