A STUDY ON DEALERSHIP SATISFACTION (A study with reference to PEARL BOTTLING PVT LIMITED, VISAKHAPATNAM) A Project report submitted in partial fulfillment for award of the degree of MASTER OF BUSINESS ADMINISTRATION By U.Sanjeev Kumar Regd. No. 1225111157 Under the Esteemed Guidance of Dr.y.v.v.s.s.s. vara Prasad (ASSISTANT PROFESSOR) DEPARTMENT OF MANAGEMENT STUDIES GITAM UNIVERSITY 1
1) To know the various promotional, selling and distribution strategies adopted by PEARL BOTTLING PVT LTD
2) To analyze the reasons of selling Pepsi at retailers level.
3) To study the dealers satisfaction.
4) To find out the ways to enhance the sale of Pepsi
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
A STUDY ON DEALERSHIP SATISFACTION
(A study with reference to PEARL BOTTLING PVT LIMITED, VISAKHAPATNAM)
A Project report submitted in partial fulfillment for award of the degree of
MASTER OF BUSINESS ADMINISTRATIONBy
U.Sanjeev Kumar
Regd. No. 1225111157
Under the Esteemed Guidance of
Dr.y.v.v.s.s.s. vara Prasad
(ASSISTANT PROFESSOR)
DEPARTMENT OF MANAGEMENT STUDIES
GITAM UNIVERSITY(Established U/S 3 of UGC Act, 1956)
Visakhapatnam-45
2011-2012
1
ACKNOWLEDGEMENT
It is my pleasure to acknowledge and express my gratitude to all those who
helped me throughout in the successful completion of this project.
I am very thankful to Sri. C.RAJASEKHAR Vice President (marketing), of Pearl
bottling Private Limited, Madhurawada, Visakhapatnam, for extending support
throughout the project.
I am thankful to Sri B.SRINIVAS Dy.Manager (F&A), of TSPL, Visakhapatnam, for
providing information regarding the project.
I wish to express my gratitude to Prof K Siva Rama Krishna, Dean & Principal,
GITAM Institute of Management, GITAM University, Visakhapatnam, for giving me
this valuable opportunity to experience the work culture in an organization.
I am grateful to Dr.y.v.v.s.s.s. Vara Prasad, assistant professor, GITAM Institute of Management, GITAM University, Visakhapatnam for his/her continuous
guidance to accomplish this project work, successfully.
U.sanjeev Kumar
1225111157
2
3
DECLARATION
I, u.sanjeev Kumar, a student of Masters of Business Administration (M.B.A.),
GITAM Institute of Management (GIM), GITAM University, hereby declare that the
project work initiated on at ______________________ is a genuine work done
by me in partial fulfillment for the requirement of the degree of Masters of
Business Administration. I confirm this has not been published or submitted
elsewhere for the award of any degree in part or in full.
U.sanjeev Kumar
10-08-2012
4
CERTIFICATE
This is to certify that the project Report titled “-------------------------------------” is an original work carried out by ----------------- (Enrollment No 1225111157), under my guidance and supervision, in partial fulfillment for the award of the degree of Masters of Business Administration by GITAM Institute of Management, GITAM University, Visakhapatnam, during the Academic year 2011-12. This report has not been submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.
Signature of Guide
Name and Address of the Guide:
Dr.y.v.v.s.s.s. vara Prasad
Assistant professor
GITAM Institute of Management
Visakhapatnam
5
CONTENTS
CHAPTER – I
Introduction
Need for the study Objectives Methodology Limitations
CHAPTER - II
Industry Profile Company Profile
CHAPTER – III
Theoretical frame of study
CHAPTER – IV
Tabulation and Analysis
CHAPTER – V
Summary Findings Suggestions
BIBLOGRAPHY
ANNEXURES
6
CHAPTER- I
7
INTRODUCTION
Modern age i s fu l l o f compet i t ion. Today on ly way of success i s your continuous efforts towards the growing market needs and in sat i s fy ing them. I t i s the marketer job to know what the market s p e a k s i . e . t h e e v e r - c h a n g i n g n e e d s o f t h e c u s t o m e r t h r o u g h m a r k e t r e s e a r c h & a d o p t t h e m f r u i t f u l l y . I t i s m u s t f o r a l l t h e companies to make pol ic ies accord ing to the customers and theg o v t . T o d a y t o s u c c e e d f o r a n y o r g a n i z a t i o n h a s t o t a r g e t i t s customer needs, to create a culture in the organization i.e. market conscious & responsive to customer needs. Sof t dr inks industry has become b ig bus iness in Ind ia in recent years.The soft drink business underwent major change with the entry of PEPSI and re-entry of COCA-COLA in Ind ia in the late 80s when Par ley wi th brands l i ke Thumsup, L imca & Gold spot was a c lear leader . Coca-Cola took up the product l ine of par ley in 1993-94; today both brands are the Indians favorite soft drinks
` STUDY IS CONDUCTED CONSIDERING THE FOLLOWING ACCEPTS: Firstly, visage is a representative of soft drink market, which is highly promoting with a lot of potential, which is apt to be tapped. Secondly , the behav ior of the reta i ler i s very much inf luenced by the additional benefits he is getting for selling the products having. Th i rd ly , to understand the market condi t ion of the sof t dr inks in the present scenario and the competition level in the market. Cons idered the key ro le of the reta i ler in present day market as an at tempt was made to s tudy the impact of company’s schemes of of fer ing coolers to the retailers.
8
NEED FOR THE STUDY
The Indian soft drink industry has been growing at a healthy average o 12%
per annum. The industry sells millions of crates every year giving sales revenue of
cores the per capita consumption of soft drink is certain to expand. Hence, the
manufacturers are making innovations in production & the distribution process as
well as in advertising & creating new kind of attractive packaging to accelerate
their growth. Soft drink market is very vast like an ocean as the demand is
enormous, day-to-day changes in tasters, fashions, trends, etc., lead to tap the
unexplored markets. However it is a pity that to have our own indigenous soft
drink brand name of Indian origin through the length and breadth of the country.
The entry of carbonated soft drink into the Indian soil is relatively new. The credit
for introducing branded soft drink goes to pure drinks private limited, Delhi. Later
on, this company became the franchised bottler of Coca-Cola, exports
corporations.
Accordingly, in 1950, Coca-Cola made its first debut of soft drink in India.
However, the company left India in 1961, as it could not get the expected
business in the market. The exit of Coke, the undisputed leader in the soft drink
market, this company too was forced to leave Indian due to its non-competence
with the & regulations of the Government-I 1977. Then coke became a boon to
national manufacturers & all the players started increasing their business among
the many national players, as if pure drinks emerged as the leader in the Indian
9
soft drink market. It believed that by the end Parle captured more than 75% of
the National soft drink market.
Pepsi-Cola North America, Headquartered in Purchase, N.Y., is the
refreshment beverage unit of PepsiCo Beverages and Foods North America, a
division of PepsiCo Beverages and Foods North America also comprises PepsiCo’s
Tropicana, Gatorade and Quaker Foods business in the United State and Canada.
Pepsi-Cola North America has carbonated soft drinks, including Pepsi, Diet Pepsi,
Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root
Beer account for nearly one-third of total soft drink sales in the United States.
Pepsi-Cola North America’s non-carbonated beverage portfolio includes
Aquarian, which is the number one brand of bottled water in the United States,
Dole single-serve juices and Soda, which offers a wide range of drinks with herbal
ingredients. The company also makes and markets North America’s best-selling,
ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks,
respectively.
Consumers adjust purchasing behavior based on their individual needs and
interpersonal factors. In order to understand these influences, researchers try to
ascertain what happens inside consumer’s minds and to identify physical and
social exterior influences on purchase decisions. On some levels, consumer choice
can appear to be quite random. However, each decision that made has some
meaning behind it, even if that choice does not always appear to be rational.
Purchase decisions depend on personal emotions, social situations, goals, and
values. People buy to satisfy all types of needs, not just for utilitarian purposes.
Prestige is another intangible need, and those concerned with status will pay for
10
it. However, goods appealing to this type of need must view as high-profile
products that others will see in use. One benefit of targeting this type of market is
that the demand curve for luxury products is typically the reserve of the standard;
high status products sell better with higher prices. Some equate the type of need
to meet with certain classes of goods. For instance, a need for achievement might
drive people to perform difficult tasks, to exercise skills and talents, and to invest
in products such as tools, do-it-yourself materials, and self-improvement
programs, among others. The need to nurture or for nurturing leads consumers to
buy products associated with things such as parenthood, cooking pets,
houseplants, and charitable service appeals. Personality traits and characteristics
are also important to establish how consumers meet their needs. Pragmatists will
buy what is practical or useful, and they make purchases based more on quality
and durability than on physical beauty. The aesthetically inclined consumer, on
the other hand, has drawn to objects that project symmetry, harmony, and
beauty. Intellectuals are more interested in obtaining knowledge and truth and
tend to be more critical.
They also like to compare and contrast similar products before making the
decision to buy. Politically motivated people seek out products and services that
will give them an “edge”, enhancing power and social position. Moreover, people
who are more social can best motivated by appealing to their fondness for
humanity with advertising that suggests emp0athy, kindness, and nurturing
behavior.
PepsiCo, Inc. founded in 1965 through the merger of Pepsi-Cola and Frito-
Lay. Tropicana acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats
Company, creating the world’s fifth-largest food and beverage company, with 15
11
brands – each generating more than $1 billion in annual retail sales. PepsiCo
success is the result of superior products, high standards of performance,
distinctive competitive strategies and the high level of integrity of our people.
In modern days, market plays a vital role in rapidly changing industrial scenario. The marketing decline is undergoing reappraisal in the light of vast goals, technological, economic and social changes being faced by the today companies. The order to known the changes in the field of marketing it are necessary to conduct market survey.
12
OBJECTIVES OF THE STUDY
1) To know the various promotional, selling and distribution strategies adopted by PEARL BOTTLING PVT LTD
2) To analyze the reasons of selling Pepsi at retailers level.
3) To study the dealers satisfaction.
4) To find out the ways to enhance the sale of Pepsi
13
METHODOLOGY
The requisite data been gathered through two important sources:
1. Primate Data
2. Secondary Data
Primary Data:
Information, which has been gathering for the first time, called as primary
data. PRIMARY DATA is data that has not been previously published, i.e. the data
is derived from a new or original research study and collected at the source, e.g.,
in marketing, it is information that is obtained directly from first-hand sources by
means of surveys, observation or experimentation.
Secondary Data:
Secondary data is the data collected by others, for the purpose other than
the solution at hand. As for the study of secondary data was collected from
company reports, reference books, magazines, newspapers, trade and Govt.
publications and various books and records from the marketing departments. As
the study aims at finding out the customer satisfaction, it needed to conduct a
survey. The required collected with help of a questionnaire schedule.
14
LIMITATIONS OF THE STUDY
Data collection had some hurdles due to large size of organization.
The scope of the study is limited to some areas.
First, there was time constraint since this study had to complete in a limited
period of 45 days
Some retailers were extremely unhappy with the company support and after sales service
Some of them could not get total flavors due to which they nagged
A number of retailers (pan-shop) being illiterate, it took us lot of time in collecting information.
The mere information, which we get from the retailers, is not sufficient to arrive at a conclusion.
The seasonal changes affect the sell
15
CHAPTER-II
INDUSTRY PROFILE
COMPANY PROFILE
16
SOFT DRINK INDUSTRY
Soft Drink:
A soft drink is a drink that does not contain alcohol, as opposed to hard
drinks, that do. In general, the term has used only for cold beverages. Hot
chocolate, tea, and coffee have not considered as soft drinks. The term originally
referred exclusively to carbonated drinks (soda), and still commonly used in this
manner.
Marketing:
Soft drinks have commonly sold in stores in bottles and cans. Sales earn a
significant amount of money for the producers and distributors. Most famous
name-brand soft drinks have produced and bottled by local or regional
independent bottling companies. These companies license the name, and they
usually sold the main ingredients, with syrup made by the main manufacturing
plants of the trademark holders. In the past, most cola flavor and other soft drink
ha sweetened with ordinary sugar (sucrose), but to save on production costs,
most companies in the USA have turned to the more economical HFCS (High-
Fructose Corn Syrup) as a sweetener, because of the high price of sugar in the
USA due to sugar quotas. In some countries outside the United States, sugar is
still used. Competition in the industry among soft drink producers is widely
referred to as the “Cola Wars”.
17
Diet Soft Drinks:
In recent years, there has been a growing demand for alternatives to sugar-
heavy soft drinks. “Regular” soft drinks largely contain sugar or corn syrup, and
been blamed in recent years for contributing to obesity. Sugars, like other
carbohydrates stimulate the production of the hormone insulin, which causes the
body to store far rather than burn it. “Diet” soft drinks are sweetened with
chemicals, such as aspartame and saccharin, which are perceived as sweet by
most people, yet do not stimulate insulin production or have any food energy or
nutritional value.
In some other areas, these drinks called “Soda pops”, while in and around
Boston, Massachusetts, they often called “tonic”, particularly among older
generations. In North Carolina, the terms “drink” and “soft drink” commonly used
along with “soda” and “coke” to refer to non-alcoholic cold drinks. Some older
generations of Southerners refer to such drinks as “dope”. See the Great Pop Vs
Soda Controversy for maps and geographical trends.
At many restaurants in the U.S., One finds that the products of only a single
major beverage producer such as The Coca-Cola Company or PepsiCo are
available. While a patron who requests a “Coke” may be truly indifferent as to
which cola brand he receives, the careful order taker will confirm intent with a
question like “Is Pepsi OK?” Similarly, “7 Up” or “Sprite” may indicate whichever
clear, carbonated, citrus-flavored drink happens to be at hand. The generic use of
these brands does not affect the local usage of the works “pop” or “soda”, to
mean any carbonated beverage.
18
Mixed Soft Drinks:
A graveyard/ suicide/ pop bomb/ swamp water/ garbage soda is made by
mixing many soft drinks together, usually from a soda fountain.
A float created by dropping a scoop of ice cream into a soft drink. In the
Midwestern United States, a soft drink with ice cream added most often
called a “soda” thus leading to quizzical looks from wait staff when people
ask for a “soda” instead of pop. The most common of these is the root beer
float. In Australia and New Zealand, it has known as a Spider.
In Brazil, a scoop of ice cream into a soft drink may have different names:
Starbucks Double sot®Is the only “get you going” beverage that has the delicious intensity of chilled Starbucks espresso and cream? Product Informationwww.soubleshot.com
Tropicana Twister SodaTropicana Twister TM Soda gives you the intense fruit flavors you are looking for. Available in Orange, Diet Orange Strawberry and Grape.
Pepsi Food Indian Limited drinks is owned by multinational giant of
beverages of company incorporation; of New York, USA – which has a turnover of
$ 28 billion and an average sales volume of $ 10 billion in the world. Prior of
liberalization in 1990, corporation entered into a joint venture with TATA group
company Voltas with 24% equity under the Punjab agro industry corporation with
36% equity and with an investment of $ 98 million. After LIBERLISATION of our
economy, Voltas share has acquired by leaving only 8% to the Punjab agro
industries and later on, it bought all the equity shares and converted food from a
three – way joint venture to a fully owned subsidiary.
Pepsi Foods Indian Limited is head quartered in New Delhi. It has 11
companies – owned bottling plants and 15 franchises throughout the country.
Company earlier used “Lehar” as a prefix to each of its brand names. Later it had
asked by the government to drop the prefix. Another challenge is that Parle has
come from Coca-cola.
The Parle and Coke dominated the Indian soft drink market in the ensuing
days. Coca-Cola purchased Parle’s brand such as Thumps Up, Limca, etc., along
with its distribution network in 1993, at present has a market share of 48.5% and
ranks number one in total sales of soft drinks, where as Pepsi has a market share
of 47.8% and ranks next.
38
PROFILE OF PEARL BOTTLING PRIVATE LIMITED
PBPL incorporated in 1982 at Madhurawada in Visakhapatnam District of
Andhra Pradesh for the purpose of manufacturing soft drinks.
It was since then the company had started commercial production of
company cola products. It produced cola, orange and lemon flavors under the
brand names of thrill, rush, and sprint. It also produces, Mc-Dowell, Bagpiper
soda.
It produced these drinks under franchise agreement, but the company
could not exist in the market due to the stiff competition from parley products. In
February 1992, the company signed to manufacture and market products under
franchise agreements. Franchise is a contract, which gives the company the right
to do the business under the name and image of principal’s. According to this
agreement, PBCL has given its consent…
To manufacture soft drinks using the concentrate supplied by Pepsi foods.
To sell soft drinks and prices fixed by.
To advertise and market within specified areas for the products.
From 23rd April, PBPL started distributing the stocks received from Cuttack
Plant. Commercial production started in PBPL from June 1992 onwards.
Initially four brands viz., Seven-Up, Mirinda, and Lehar soda were bottled
and distributed where as slice have supplied by Cuttack plant. In May 1993, a
cloudy lemon flavor called “TEEM” was introduced which was not very well
received by consumers because of the well established “LIMCA”.
39
In April 1998 a new cloudy lemon flavor, namely Miranda Lemon has
introduced after discounting TEAM.
PBPL limited appointed as franchise by foods limited, in activities originally
constructed by Campa-Cola soft drinks in 1980 at Madhurawada due to losses
suffered by Campa-Cola, the unit became insolvent.
As a result, Andhra Pradesh State Finance Corporation auctioned the
premises, in 1990, after which it has purchased by PBPL. It started production in
1991. Initially it produced Mc-Dowell company’s brands – THRILL, RUSH, SPRINT,
MC-DOWELL’S SODA and BAGPIPER SODA. In February 1992, PBPL signed a
memorandum of understanding with foods. The product has launched in 1992.
From April 23rd, it started its distribution on receiving stocks from Cuttack.
However, commercial production started at Visakhapatnam from June 1992
onwards. In the beginning FOUR drinks were bottled namely; PEPSI, MIRINDA,
LEHAR SODA, SEVEN-UP were bottled and distributed were as SLICE continued to
be supplied from Guntur Plant.
The company distributes its products in five districts, they are:
VISAKHAPATNAM
SRIKAKULAM
VIZIANAGARAM
EAST GODAVARI
WEST GODAVARI
40
FINANCIAL STRUCTURE
Any company, which has to start and operate its business, has to invest its
capital in fixed assets and floating assets and it is has to meet the daily
requirements of the company. However, depending on the nature of the business
and the product offered by the company, the ratio of investment of capital in
fixed and floating assets differs.
The following shows the financial structure of the pearl bottling limited
TYPES OF CAPITAL AMOUNT (IN LAKHS)
Funds employed 60
Working capital 15
Institution finance 40
PLANT LAYOUT
The layout of the bottling plant of PBPL confines for all the products based
on the line layout. The machines and equipment have imported from Germany,
which produces the best capital equipment in the world. The machinery and all
the equipment has arranged as per the sequence of operations. The machines
and workers are specialized in operations such as the preparations of syrup,
cleaning the bottles, filling the bottles, aerating and sealing the bottles with
crowns. All these carried on a continuous movement. The reasons for choosing
the product layout are
41
There is continuous supply of material.
The brands are all standardized products.
The demand for the products brand is reasonably stable.
The volume of production is adequate for the reasonable utilization of
equipment.
Due to the above reasons, the product layout offers certain advantages.
The product cycle speeded up since the company follows a continuous operation
movement; the cost of material handling goes low. The total floor space is
required by the machine is less than for other types of plant layout.
PLANT CAPACITY
The company installed latest up to date automatic plant confirming to plant
layout. The capacity of the plant is 24000 bottles per hour i.e., at the speed of 400
bottles per minute. The months from March to June, the plant is used to its full
capacity by running three shifts every day. Each shift consists of eight hrs of so,
during the summer season, the plant runs round the clock. This is because the
demand reaches its peak in these summer months hence the company has to
produce enough bottles of soft drinks at a speed to keep in pace with the
disappearance of soft drinks from the shelves of the retailers.
PRODUCTION SCHEDULE
The production schedule has fixed by taking into consideration the present
or current market demand. It also caters to the availability of empty bottles and
the inventory position of filled up bottles of varying flavors.
42
The production schedule for each brand fixed daily i.e., filling up of the bottles of
each brand and flavor. This has an advantage wherein the banded products can
manufactured one at a time. The glass bottles used for filling the soft drink are of
the volumes capable of containing 300 ml of soft drink. There are also bottle of
200ml, 500ml 1 ltr, 1.5 ltr and 2 ltr capacities to fill by soft drinks.
QUALITY CONTROL
PBPL takes great care to maintain the quality by controlling the products in
their factory. The bottles have usually examined for impurities continuously as the
bottles move out. Samples have checked after every 10 minutes of the production
time by the chemist for its quality and hygienic condition. The chemical analysis
has made for flavors and the gas content checked. If any defects have noticed, the
production is suspended and the corrective and the corrective measures have
taken to set right the bottling, process irregularities. Samples have taken from
each week for quality checkup. Moreover, the agency of the company also lifts
samples from the market at random for quality check up at anytime to make sure
that the quality has maintained to the exact standard of the parent company.
At the end of the production schedule, daily all the equipment plant floor
and we patches cleared with bleaching powder or some other solution. The
standard of hygiene maintained inside the production steps is commendable.
43
SYRUP MAKING
In this process the syrup of a particular type is prepared by heating sugar
with activated carbon powder and filter aid (by flousuper cell’) in the treatment
tank for a specified time and up to a particular temperature. During the
treatment, most of the color, odor, and some organic impurities have removed
from the sugar syrup. This treated syrup then passes through the filter press,
fitted with; filter papers and heat exchanges, and then the clear syrup has
collected in the syrup-making tank. The essence of particular products will be
added for which a required amount of sugar is taken treatment Sugar syrup and
essence are then mixed in the tank with the help of a mechanical stirrer and
eventually the favor syrup is ready to be used in the end use of the product.
WATER TREATMENT
This is the second stage. In the process of soft, drink manufacture. Water is
the basic ingredient in the soft drink, which comprised up to 90% of the quantity.
Hence, the quality of water is of great significance to the soft drinks
manufacturer. Here, when water has brought to the treatment tank, it has
treated with a few chemicals such as hydrated lime, bleaching power and ferrous
sulphate, which have mixed thoroughly with the help of a mechanical stirrer.
The reasons for water treatment are as follows:
It removes the hardness of water and converts it into soft water.
It frees the water from microorganisms.
It reduces the alkalinity to a required level.
44
This treated water passes through the specially designed filtration plant
containing chemicals such as activated carbon (granular) and finally the
manufacturer will get the water suitable for soft drink bottling. Soda bicarbonate
used for maintaining the equipments in hygiene conditions.
BOTTLING
In this process, both the concentrate and the purified water has mixed
along will carbon dioxide gas and then bottled. In the soft drink field, only
reasonable glass bottles are sterilized to make them sparkling clean, before the
beverage is filled in the for this purpose, the company makes use of machine
known as ‘BOTTLED WORKER’. For cleaning up of the bottles, washing chemicals
such as caustic soda sand tri-sodium phosphate are used. In the bottle washing
system, through one end of eh worker the dirty bottles has fed which are washed
automatically while passing through various designed chambers containing
chemical solutions at different temperatures and concentration. Hot water has
used for cleaning the bottles. The bottles, after sterilization are collected at the
other end of the washer. They have sent towards the filter on conveyor belts.
Before the beverage reaches the filling machine, it saturated with carbon dioxide
gas. This carbon dioxide gas gives “fizz” to the soft drinks and alongside prolongs
the shelf life of the products. The bottlers and then moved on the conveyor belts
to the filling machines where the beverage is filled under pressure. From there
the bottles are sent to the crowner where sealing of the bottle in done with the
help of crowns. The crowns have used to retain the carbon dioxide flavors as well
as to protect the products from spoilage and contamination.
45
CRATING
The bottles collected from conveyor belts have placed manually into plastic
crates. Each plastic case has a capacity of 24 bottles only. These crates protect the
bottles form breakage as well as it ensures easy handling of the bottle. These
crates put on specially designed vans for carrying the bottles to their various
consumption points.
PERCENTAGE OF FLAVOR MOVEMENT IN THE MARKET
PEPSI 46.65%
THUMS UP 19.45%
LIMCA 12.44%
7 UP 12.22%
MANGO 9.22%
MANUFACTURING PROCESS OF A SOFT DRINK
For manufacturing a soft drink, the following raw materials are required.
1. Water
2. Sugar
3. Activate carbon powered
4. Hyflousuper cell
5. Filter paper
6. Essence
7. Hydrated line
8. Bleaching power
46
9. Ferrous sulphate
10.Activate carbon (granular)
11.Soda-bio-carbonate
12.Carbon- dioxide gas
13.Tri sodium phosphate
14.Plastic crates
15.Caustic soda
The process of manufacturing soft drinks has mainly divided into four parts, they
are:
1. Syrup making
2. Water treatment
3. Bottling
4. Crating
In syrup making process, the syrup of a particular product is prepared by
heating sugar with activated carbon power and filter (Hyflousuper cell) in the
treatment tank for a specified time up to a particular temperature. During
treatment, most of the color, odor, and some organic impurities have removed
from the sugar syrup. This treated passes through the filter press filter with
papers and heat exchanges and the clear syrup is collected in the syrup moving
tank where the essence of a particular product will be added for which a required
amount of sugar is taken for treatment. The essence and sugar syrup has mixed
into the tank with the help a mechanical stirred and finally the flavor syrup is
ready for use in finished products.
47
The second process is water treatment. As an added ingredient, water can
compromise up to 90% of a soft drink. The quality of water is thus of a particular
importance to the soft drinks manufacturers. In this process, water has brought
to the treatment tank and then water treatment chemicals such as hydrated lime,
bleaching power and ferrous sulphate has added to the tank and moved
thoroughly by the help of mechanical stirrer. The treated water-is then passed
through the specially designed filtration plant containing chemicals such as
activated carbon (granular) and finally the manufactured will get the standard
water i.e., suitable for soft and then bottles are moved towards crowner where
the sealing is done w3ith the help of crowns. The crowns used in order to retain
the carbonation flavors as well as to protect the products from outside
contamination and spoilage. The bottles have checked for maintaining the
required standard. Finally, the filled bottles have checked for maintaining the
required standard. Finally, the filed bottles have collected in plastic crates from
the conveyor. The marketable le lot is only comprised of a crate and filled with 24
bottles in each plastic crate. This crate is mainly useful to protect the bottles and
keep them in good condition and eliminates breakage and collected back in the
same crates. Then the finished products have transferred to the shipping
department of shipment.
ORGANIZATION STRUCTURE AND MANAGEMENT
The word organization has two common meanings. The first meaning
signifies institution or functional group, and the second one refers to the process
of organizing the way of work, which has arranged and allocated among members
of the organization, so that the goal of the organization can achieved efficiently.
48
The organizing process involves balancing the company’s need; both for stability
on one hand and change on t3he other hand. Na organization structure gives
stability and reliability of its goals. While altering an organization structure can be
a means of adopting and bringing in about a change, which could otherwise be a
source of resistance to change.
Organizing involves analysis of activities to be performed for achieving
organizational objectives grouping them into various individual’s and delegation
them with appropriate authority so that they can carry on their work properly.
Organization structure can defined as an arrangement and relationship of
component parts, which also helps to determine the position or company. An
organization structure specifies the division of work activities and shows us how
different activities linked.
Organization structure is a basic framework within which the manager’s
decision-making behavior takes place. Structure deals with relationships. It is an
important scientific concept. In simple terms-it has defined as a pattern in which
various parts or compounds are inter-related or inter-connected.
Five elements comprise an organization structure:
Specialization of activities
Standardization of activities
Coordination of activities
Centralization and decentralization of activities
Size of the work unit
49
The Managing Director, Mr. Haranath Reddy, is the Head of the
organization, which had assisted by a team of Senior, well-qualified and
experienced managing personnel.
LIST OF STAFF
Sl. No.
Description No. of Employees
1 VICE PRESIDENT - FINANCE 1
2 COMMERCIAL MANAGER 1
3 MARKETING DEVELOPMENT MANAGER 1
4 SENIOR GENERAL MANAGER – SALES 1
5 TERRITORY DEVELOPMENT MANAGER 4
6 ACCOUNTS DEVELOPMENT COORDINATOR 3
7 TRADING MANAGER 1
8 ASSISTANT TRADING MANAGER 1
9 MARKET EQUIPMENT MANAGER 1
10 GENERAL MANAGER (OPERATIONS) 1
11 ASSISTANT PERSONAL MANAGER 1
12 STORE EXECUTIVES 3
13 CUSTOMER CENTRAL EXECUTIVE 25
14 TERRITORY COORDINATOR 1
15 ROUTE AGENTS 50
16 SALES TRAINEE 1
17 CHEMISTS 3
50
18 ACCOUNTS 5
19 SUPERVISORS 8
20 CLERKS 8
21 OPERATIONS 10
22 ELECTRICALS 3
23 FITTERS 2
24 COMPUTER CUM TELEPHONE OPERATORS 12
25 SECURITY GUARDS 6
26 OFFICE BOYS 13
27 SWEEPERS AND HELPERS 3
(NOTE: ACCORDING TO 2011 COMPANY’S INFORMATION)
The above table shows the descriptions of employees along with their designation
and the total no. of employees that constitute each designation.
51
CHAPTER-III
THEORITICAL FRAME WORK OF THE STUDY
52
Introduction4P’s of marketing Product:A business needs to consider the products that it p r o d u c e s a n d t h e s t a g e o f t h e p r o d u c t l i f e c y c l e t h a t a p r o d u c t i s a t . Marketing strategies will vary according to the type of product and its stage in the life cycle. In case of Pepsi, in the rural markets, the 300mlbott le and now days the new smal l or commonly known as the “chota Pepsi” is very much popular. The Pepsi Co. is even thinking of introducing the i r new Peps i -Aha, but present ly they are concentrat ing more on the n o r m a l P e p s i , a s t h e r u r a l m a r k e t i s a n i c h e m a r k e t . P e p s i i s e v e n s u c c e s s f u l i n i n t r o d u c i n g t h e b i g 1 - 1 . 5 l i t e r P E T b o t t l e s i n t h e r u r a l m a r k e t s . T h e s e b i g b o t t l e s A r e v e r y p o p u l a r d u r i n g b i g f e s t i v a l s a n d marriages.Price:PRICING POLICIESThe company first has to decide what it wants to accomplish with its particular product offer. If the company has selected its target market and market positioning carefully, then its marketing mix strategy-including price – will be straight DETERMINING DEMAND
Each price that the company might charge will lead to a different level of demand and will therefore have a different impact on its marketing objectives. The relation between alternative prices that might be charged in the current time. In the normal case, demand and price are inversely related. That is, the higher the price, the lower the demand, and the lower the price, the higher the demand. Demands set a selling on the price that the company can charge for its product. In addition, company costs set the floor. The company wants to charge a price that covers its cost of producing, distributing, and selling the product, including a fair return of its effort and risk.SELECTING A PRICING METHOD
53
Given the three C’s the customer’s demand schedules, the cost function and competitors the company is now ready to select a price. Within the range of possible determined by market demand and costs, competitors costs, prices, and possible price reaction help the firm establish where to set its price. The PepsiCoPvt. Ltd needs to benchmark its costs against its competitor’s costs to learn whether it is a operating at a cost advantage or disadvantage. The company also needs to learn the price and quality of competitor’s offers. The firm sends out comparison shoppers to price and assess competitor’s offers, acquire competitor’s price lists, buy competitor’s equipments and take it apart, and ask buyers how they perceive the price and quality of each competitor’s offer. Once the company is aware of competitor’s prices and offers, it uses them as an orienting point for its own pricing. If the firm’s offer is similar to a major competitors offer, then the firm will have to price close to the competitor has or lose sales. If the firm’s is inferior, the firm will not be able to charge more than the competitors will. If the firms offer is superior, the firm can charge more than the competitors can. PromotionSALES PROMOTIONAL ACTIVITYSales promotion a very ingredients in the marketing companies consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or grater purchase of particular product or services by customers. Promotional activities play a key role in the entire marketing effort being carried out by LUMBINI BEVERAGA, which is coordinated with those of PEPSI CO.INDIA. These promotional activities generate more sales as well as create a good image of the Product in the mind of customers. .Promotion tools used by PEPSI company of its marketing activities are:1. Point of sale display2. Incentive to Retailers3. Sales promotion through sponsoring special events.4. Sales promotion through various schemes.5. Advertising.6. Scratch coupon card7. Free gift items.Point of sale display: -
54
As it is mentioned that soft drink are kept in FMCG category so it is very necessary to make a proper display of its product. General consumer demands the thing, which he looks first. Because in FMCG product consumer is not too much concern about product. So outlet owners are suggested to keep bottles in stand and keep it out of the shop. So that customers have an eye contact with product as he enters the shop. This is particularly true for those brands which have very low customer loyalty soft drink is one such product in which most of the time buying decision is made at the spur rand which is readily available and catches the customer. For this reason PepsiCo invest heavily in this categories by supplying the shop owners with stands so that they can keep the bottles outside on those stands so that customer have an eye contact with themes he/she is entering the shop. Also PEPSI supply the shop with coolers with a glass front so that cooled bottles can be seen by the customers for making the decision on the flavor that person is going to buy. Apart from these, PepsiCo takes keen in the other type strategies like painting the walls of the shops with the PEPSI logo and the shop name. This increases the visibility of the brand among the customer when he/she enter the shop.Incentive to Retailers:-Another method of sales promotion is to give incentive scheme to retailer, under this promotional method retailers are given a target regarding the minimum no. of crates that they have to sale in that period, on achieving the target the dea ler i s g iven at t ract ive pr i zes which ranges f rom f ree bottles, gift items.SPONSORING SPECIAL EVENT:- PEPSI is sponsoring various events, which include cricket matches, local events like quiz competitors, Parties, local sports, Orchestra, cultural programmed etc.Advertising Policy:-Advertising is considered the most important tool to increase sales. PEPSI uses various methods to advertise its product; advertising is made through TV channels, Radio, magazines, Newspaper, Banners etc. Scratch Coupon Card:-Scratch card i s another type of too l , which he lps to increase sa les . In scratch card the name of the gift item is printed and a layer is covered that pr i ze name. Out let owner are g iven that card and af ter scratch ing whatever they get company distribute it among them. PEPSI has distributed scratch card by which outlets owners are facilitated by torch, 600ml pet, 300ml liquid etc.
55
“MERCHANDISING POLICY” In today’s fast moving industry and highly competitive market, only those products are likely to be purchased which are capable of hitting the impulse of the consumers. The products appeal should be penetrate of consumers mind. The concerned product should induce to consumers
STRENGTH:1) Good market penetration.2) Motivated channel partner.3) Wel l def ined routes .WEAKNESS:1) All brands were not available in at least 80% shops.2) Complaint handling was not up to mark.3) Supply in certa in area i s very i r regu lar and route agents are not covering full routes) 4 ) P o o r s i g n a g e a n d d i s p l a y i s m a k i n g t h e r o u t e s w e e k f o r t h e s a l e o f Pepsi.5 ) I n t e r p e r s o n a l r e l a t i o n s h i p w i t h t h e c o m p a n y o f f i c i a l s a n d t h e r o u t e agent is not satisfactory.OPPORTUNITY: 1) It is observed that in some newly establishing areas many new outlets are opening, Pepsi needs to concentrate on these new outlets and can gradually increase its sale in these area.2) Large number of mix outlets can be changed to Pepsi exclusive and coke exclusive to mix only by luring them good and efficient supply, glow sign and cooling equipments.THREATES: 1) Coke is the only nearest competitor and it is catching up in the market penetration through price skimming and other promotional scheme.2) Some local brands commonly known asKancha, Tip Top, Shineandthe launch of Catch soft drink product causing decrease in sale in some areas.PEST Analysis:The PEST analysis examines changes in a marketplace caused by Political, Economical, Social and Technological factors’: Political change, from one party to
56
another in control- for example the rise in private healthcare and the privatizations under Conservative governments Political Analysis for PepsiCoNon-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of the regulations. There are potential fines set by the government on companies if they do not meet the standard of laws. The following are some of the factors that could cause PepsiCo company’s actual results to differ materially from the expected results described in their underlying company's forward statement are-
Changes in laws and regulations, including changes in the accounting standards, taxation requirements, and environmental laws in domestic or foreign jurisdictions. Changes in the non-alcoholic business environment. These include, without limitation, competitive product and the pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. Political conditions, especially in the international markets, including civil unrest, government changes and restrictions on the ability to transfer capital across borders.Their ability to penetrate the developing and emerging markets, which also depends on the economic and political conditions, and how well they are able to acquire or form strategic business alliances with local bottlers and make the necessary infrastructure enhancements to the production facilities, distribution networks, sales equipment and technology.E: Economic change, for example, a recession creating increased activity at the lower ends of the product price ranges. Rate of interest raises depressing business and causing redundancies and lower spending level.Economic Analysis for PepsiCo Last year the U.S. economy was the strong and nearly every part of it was growing and doing well. However, things changed. Most economists loosely define a recession as the two consecutive quarters of contraction, or negative GDP growth. On Monday 26, the government officially declared that the U.S. has been in recession since March. However, because of the aggressive action by the
57
Federal Reserve and the Congress it will be short and mild. The economy will return to the sustained, positive growth in the first half of year .Future Outlooks
The Federal Reserve is doing all that it can help the economy to recover. They have cut the interest rate ten times in this year. The rate now lies at 40-year low of 2.1%. Lowering the interest rates will ultimately excite consumer demand in the economy. Companies will expand and increase use of debt because of the low borrowing rate. PepsiCo can borrow money for investing in some other product as the interest rates are low. It can use the borrowing on the research of new products or technology. As researching for new products would cost less the PepsiCo Company will sell its products for less and the people will spend as they would get cheap products from the PepsiCo.
Before the attacks on September year, the US was starting to seethe economy recover slightly and it is only just recently that they achieved economic levels. Consumers are now the resuming their normal habits, going to the malls, car shopping, and eating out at restaurant. However, many are still handling their money cautiously. They believe that with the lower inflation still to come, consumers will recover their confidence over the next year.
The non-alcoholic beverage industry has high sales in countries outside the U.S. According to the Standard and Poor's Industry surveys,” For major soft drink companies, there has been the economic improvement in the many major international markets, such as Japan, Brazil, and Germany. These markets will be continued to play a major role in the success and the stable growth for a majority of the non-alcoholic beverage industries: Social change involves changing attitudes and the lifestyles. The increasing number of women going out to work, for example, led to the need for the timesaving products for the home.Social Analysis for PepsiCo
Many U.S. citizens are practicing healthier the lifestyles. This has affected the non-alcoholic beverage industry in that many are switching to the bottled water and diet colas instead of beer and other alcoholic beverages. Also, time management has increased and is at the approximately 43% of all households. The need for the
58
bottled waters another more convenient and healthy products are in important in the average day-to-day life.
Consumers from the ages of 37yr-55yr are also increasingly concerned with the nutrition. There is a large population of the age range known as the baby boomers. Since many are the reaching an older age in life they are becoming more concerned with the increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing demand overall and in the healthier beverages’: Technological change - creates opportunities for new products, the product improvements, and of course new marketing techniques- the Internet.Technological Analysis for PepsiCoSome factors that cause company's actual results to differ the materially from the expected results are as follows:The effectiveness of the company's advertising, marketing and promotional programs. The new technology of the internet and televisionWhich use special effects for advertising through media They make some products look attractive. This helps in the selling of the products. This advertising makes the product attractive. This technology is being used in the media to sell their products. Introduction of cans and plastic bottles have increased the sales for PepsiCo as these are easier to carry and you can bin them once they are used
59
CHAPTER-IV
ANALYSIS AND TABULATION
60
The below data was taken and analyzed from 50 samples
Q1) Does the soft drink company provide you with refrigeration facilities?
TABLE 1
YES 38
NO 3
MIXED 6
OWN 3
CHART 1 REFRIDGERATION FACILITIES
56%
24%
16%
4%
YESNOMIXEDOWN
INTERPRETATION:
56 percent dealers are having refrigeration facilities provided by the company .company has to increase refrigeration facilities to tap untapped market
61
Q2) Dose the company provide you with mechanics for the repair and maintenance of fridges?
TABLE 2
YES 28
NO 12
MIXED 8
OWN 2
CHART 2 FRIDGE MAINTAINCE
56%
24%
16%
4%
YESNOMIXEDOWN
INTERPRETATION: only 56 percent dealers are getting mechanics for repairs so company have to focus making availability of more technical persons
Q3) what are the conditions of bottles provided by the company?
TABLE 3
EXCELLENT 8
GOOD 15
NEUTRAL 11
BAD 09
WORSE 6
62
CHART 3 conditions of bottles
16%
31%
22%
18%
12%
EXCELLENT GOODNEUTRAL BADWORSE
INTERPRETATION: about 47 percent dealers are happy with conditions of bottles .company has to take care of conditions of bottle to increase acceptance
Q4) If the bottles are broken in transit or in the shop due to natural causes or calamities then does the company bear the loss for you?
TABLE 4
YES 47
NO 3
63
CHART 4 BOTTLE DAMAGES
94%
6%
YESNO
INTERPRETATION: dealers of 94 percent are happy with company replacement Facilities Company has to retain the same image
Q5) If the products have crossed their expiry dates then dose the company replace the products for you?
TABLE 5
YES 39
NO 11
CHART 5 expiry date
78%
22%
YESNO
64
INTERPRETATION: about 78 percent dealers are satisfied with replacement of expiry products even some dealers having problems with stock left with them so company have to take necessary steps to reduce inventory levels at dealers
Q6) If yes then?
TABLE 6
Replace at reduced cost 16
Buy back 30
Replace products free of charge 4
CHART 6
32%
60%
8%
Buy back Replace products free of charge
INTERPRETATION: about 60 percent dealers willing company to buy back products so company should consider it
Q7) how many dealers of the company are there in your area?
TABLE 7
0-2 36
2-4 8
4-6 5
More than 6 1
65
CHART 7 NO OF DEALERS
72%
16%
10%
2%
INTERPRETATION: ABOUT 72 percents dealers were satisfied with completion from other dealers so company should retain its position
Q8) when do you replenish your stock?
TABLE 8
WEEKLY 5FORTNIGHTLY 40MONTHLY 3QUATERLY 2
CHART 8 RELENISH PERIOD
10%
80%
6%4%
WEEKLYFORTNIGHTLYMONTHLY QUATERLY
66
INTERPRETATION: ABOUT 80 percent dealers were replenishing stocks on fortnight basis so company has to focus on timely delivery of products Q9) Are you satisfied with your replenishment you get?
Very Satisfied Satisfied Neutral DissatisfiedVery Dissatisfied
INTERPRETATION: about 52 percent are happy with replacement of stocks. Company has to increase sales force to make dealer more satisfied
Q10) Dose the company give you products you require or they follow their own rules and regulations.
TABLE 10
YES 38
NO 12
67
CHART 10
76%
24%
YESNO
INTERPRETATION: dealers about 76 percent were satisfied with the products they demanded and company Norms Company has to retain its image in retaining dealers
Q11) How much time does it take to process an order? (Days)
TABLE 11
0-2 36
2-4 8
4-6 5
More than 6 1
CHART 11 ODER PROCESSING
72%
16%
10% 2%
68
INTERPRETATION: dealers of about 72 percent are satisfied with oder processing period .company has to retain its position.
Q12) any schemes or discounts in bulk buying worth worthy?
TABLE 12
YES 43
NO 7
CHART 12 Discounts on bulk buying
86%
14%
YESNO
INTERPRETATION: about 86 percent of dealers are satisfied with discounts on bulk buying. The company has to retain this for sustainability
Q13) what are the payment conditions of the company.
TABLE 13
Pay in advance 5
pay on arrival of the product 18
pay to the salesman later 27
69
CHART 13 payment conditions
10%
36%54%
Pay in advance pay on arrival of the productpay to the salesman later
INTERPRETATION: about 54 percent dealers are willing to pay sales clerk later so the company should give some time for dealers for payment
Q14) Are you satisfied with the payment conditions?
TABLE 14
Very Satisfied 18
Satisfied 22
Neutral 5
Dissatisfied 4
Very Dissatisfied 1
CHART 14
36%
44%
10%
8%
2%
Very Satisfied Satisfied Neutral DissatisfiedVery Dissatisfied
70
INTERPRETATION: about 80 percent dealers were satisfied with payment conditions .company has to retain its image in dealers prospective
Q15) Are you satisfied with the margins given to you by the company?
TABLE 15
Very Satisfied 08
Satisfied 12
Neutral 25
Dissatisfied 4
Very Dissatisfied 1
CHART 15
16%
24%
50%
8%
2%
Very Satisfied Satisfied Neutral DissatisfiedVery Dissatisfied
INTERPRETATION: about 50 percent dealers are neutral in margin satisfaction so company has to necessary steps to increase a little margin to dealers
Q16) According to you who factor plays a major role in achieving sales for Pepsi. (Rank 1-7)
TABLE 16
Brand name 13
price 10
Availability 15
loyalty 02
Quality 10
71
CHART 16 roles in achieving sales
26%
20%30%
4%
20%
Brand namepriceAvailability loyaltyQuality
INTERPRETATION: about 30 percent and 24 percent dealers feel availability of product in every region and brand name played a key role in achieving sales
Q17) what kind of promotional activities will affect sales mostly?
INTERPRETATION: about 36 percent of dealers prefer free bottle scheme rather than prizes so company focus on this incentive to increase sales
Q18. You will always buy carbonated drinks as your first choice and fruits drinks as next. ?
TABLE 18
yes 34
no 16
73
CHART 18 carbonated drinks v/s fruits drinks
68%
32%
yesno
INTERPRETATION: about 68 percent dealers prefer carbonated Pepsi drinks over fruit
based drinks so company should retain image in carbonated segment and should introduce
more products to tap fruit based segment
74
CHAPTER-V
FINDINGS
SUGGESTIONS
CONCLUSIONS
75
FINDINGS:
1) The numbers of PEPSI outlets is more than the numbers of competitor’s outlets at Visakhapatnam that results in increase in sale of PEPSI products.
2) In the city like Visakhapatnam, PEPSI products are reaching to every corner where not a single bottle of PEPSI can be seen.
3) All the areas in Visakhapatnam, almost the retailers are satisfied with the distribution network of the PEPSI product.
4) Most of the retailers want glow sign and chilling equipments, which they are asking from long time.
5) In cola segment COCA-COLA is main competitor of PEPSI, in orange segment MIRINDA is the main competitor of FANTA, in lime segment7UP and MOUNTAIN DEW is the main competitor of SPRITE, in juice (mango) segment SLICE is main competitor of MAAZA.
6) Retailers are asking for the incentives and sales promotional schemes.
7) Some retailers stops selling PEPSI products because they are not satisfied with the company, where COCA-COLA fulfill some of their demand and got the opportunity to make exclusive counter for the soft drinks.
8) The young generation of people likes most PEPSI, 7UP and M.DEW while women, children and older people like SLICE and MIRIND
76
SUGGESTIONS:
→An inspection officer should be recruited who perform surprise inspection of the market and find out the problems.→ The vehicles of the agency should be inspected so the delivery should be maintained.→after sales service has to be improved →incentives should provide based on sale.→Check the whole sellers who are selling lower price than agency.→Agency should be more honest in providing benefits to retailers.→Salary of sales force should increase so they may not do fraud with retailers to earn more.
CONCLUSIONS:
Proper approach to the retailers at the time of tie-ups is required.
The retailer’s satisfaction is medium..
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.
Dealers are happy with Pepsi products. They got the products by the
company at the time due to good distribution channel
77
Reference Books:
BIBLIOGRAPHY:
Philip Kotler (2002), “Marketing management” Prentice Hall of India,
New Delhi, Eleventh Edition.
Kotler and Armstrong (2001), “Principles of marketing” Prentice Hall of
India, New Delhi.
Gupta and Rajan Nair (2002),”Marketing Management” Sultan Chand
& Sons, New Delhi, Seventh Edition.
Memoria and joshi (1987), “Principles and practice of marketing” Mc