A PROJECT REPORT ON “STUDY OF DISTRIBUTION GAP IN PEPSICO INDIA LTD (FRITO-LAYS)” WITH SPECIAL REFRENCE TO NAGPUR REGION -: SUBMITTED BY:- MR. DINESH B. EKUNKAR -:UNDER THE GUIDANCE OF:- PROF. SHYAM SHUKLA CENTRAL INSTITUTE OF BUSINESS MANAGEMENT RESERCH AND DEVELOPMENT, NAGPUR.
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APROJECT REPORT
ON
“STUDY OF DISTRIBUTION GAP IN PEPSICO INDIA LTD (FRITO-LAYS)”
WITH SPECIAL REFRENCE TO NAGPUR REGION
-: SUBMITTED BY:-
MR. DINESH B. EKUNKAR
-:UNDER THE GUIDANCE OF:-
PROF. SHYAM SHUKLA
CENTRAL INSTITUTE OF BUSINESS MANAGEMENT RESERCH
AND DEVELOPMENT, NAGPUR.
(RASHTRASANT TUKDOJI MAHARAJ UNIVERSITY, NAGPUR
(2008 - 2010)
CERTIFICATE
This is certify that, this dissertation titled“STUDY OF DISTRIBUTION GAP IN PEPSICO INDIA LTD (FRITO-
LAYS)”WITH SPECIAL REFRENCE TO NAGPUR REGION
Submitted in partial fulfillment of requirement of the Bachelor Of Bussiness Administration program of the Nagpur University embodied the result of the bonafied research work carried out by
Mr. DINESH B. EKUNKAR
I also certify that the work is complete, comprehensive and of sufficiently high standard to warrant its presentation for examination.
I further certify that the work has been carried out under my guidance and has not submitted earlier to any other university for degree or diploma.
DIRECTOR PROJECT GUIDE Prof. SHYAM SHUKLA Prof. SHYAM SHUKLA
Central Institute Of Business Management Research & Development, Nagpur
ACKNOWLEDGEMENT
Any research works is never an individual effort. It is a contribution of
effort of many hearts, heads. It is my pleasure to express from the depth of my
heart, the gratitude and thanks to all those who whole – heartedly supported
and helped me in the completion of my project.
To being with I feel to express my deep gratitude and sincere thanks to
my Academic project guide Prof. Shyam Shukla for his priceless and
valuable guidance, encouragement for completion of work.
I would like to thank his excellence Mr. Rajendra Gimonkar (Sinior Sales
Officer) who guided as a Internship Guide and encouraged to successfully
understand and implementing the various concepts involve in the project
report.
With full respect and honor I am also thankful to Mr. Shyam Shukla,
Executive Director of CIBMR&D, Nagpur for providing me all the
possible help and facilities, which were available at his disposal.
Place:- Nagpur DINESH B.EKUNKAR
DECLARATION
I DINESH B. EKUNKAR a student of Central Institute of
Business Management & RESEARCH, Nagpur here by
declare that the project
entitled STUDY OF DISTRIBUTION GAP IN PEPSICO INDIA LTD (FRITOLAYS)”
WITH SPECIAL REFRENCE TO NAGPUR REGION or part there of has
not been previously submitted by me for any other degree or
diploma of any university or scientific organization. The project
is the result of my Bonafide work and the sources of literature
used and all assistance received during the course of
investigations
have been duly acknowledged.
Nagpur: Signature
of student
Date: DINESH
EKUNKAR
IVth
Semester
CONTENT
1.INTRODUCTION
2.HISTORY
3.OBJECTIVES
4.SCOPE OF STUDY
5.RESEARCH METHODOLOGY
6.DATA INTERPRETATION
7.LIMITATION
8.CONCLUSION & SUGGESION
9.QUESTIONNAIRE
10.BIBILIOGRAPHY
INTRODUCTION
Frito lay’s
The project purpose to decipher the satisfaction level as well as the preferences of consumers pertaining to the various flavors of Lay’s a new range of savory snacks launched by C.
We aim to analyse the success, marketability and future growth prospects of LAY’S. Basically we intend to find out the most popular flavor of LAY’S in the market from our sample.Snacks as such are a very minor part of the food processing industry because snacks sample. Snacks as such are sector is largely unorganized.
Here we will also look into the market For this a survey was conducted in Nagpur where respondents were asked to fill a questionnaire. The data was collected and analyzed to obtain conclusions
This report carries an introduction of the company profile, detail of the methodology followed detailed data analysis and the results so obtained with the variety of graphs along with given.
.
Mission, Vision & Values
VISION
As we stand at the crossroads of the new millennium, it's time to eradicateOur 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."
"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 BestThe best in connecting with the customer ad 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.
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 reflection of the socially and environmentally responsible company We are committed to delivering sustained growth through empowered people acting responsibly and building trust.
Partnership with Farmers
PepsiCo India’s Agri-partnerships with farmers help more than 15,000 farmers across the country earn more...
Brands & Flavours
a. LAYS (Chips)
b. KURKURE
c. UNCLE CHIPS
d. DESI BEATS
e. CHEETOS
f. LEHER (Namkeen)
g. ALIVA (Biscuits)
h. QUAKER (Oats)
The various brands of FRITO-LAY’S are available in various flavours .The brands are available in various size packets as –
1. Ultra Small (Rs.3/)
2. Small (Rs. 5/)
3. Medium (Rs. 10/)
4. Large (Rs. 20/)
5. Extra Large (Rs. 25/)
a. LAYS (CHIPS)
FLAVOURS
SIZE (Rs.)
SMALL
Rs. 5/
MEDIUM
Rs. 10/
LARGE
Rs. 20/
EXTRA-LARGE
Rs. 25/
SPANISH TANGY TOMATO
YES YES YES YES
CLASSIC SALTED
YES YES YES YES
AMERICAN CREAM & ONION
YES YES YES YES
MAGIC MASALA
YES YES YES YES
LIME &MASTI
YES YES YES YES
b. KURKURE
FLAVOURS
SIZE (Rs.)
ULTRA-SMALL
Rs. 3/
SMALL
Rs. 5/
MEDIUM
Rs. 10/
LARGE
Rs. 20/
MASALA MUNCH
YES YES YES YES
RAJASTANI NO YES YES YES
RED CHILLY CHATKA
NO YES YES YES
HYDERABADI HUNGAMA
NO YES YES YES
SOLID MASTI NO YES YES NO
C. UNCLE CHIPS
FLAVOURSSMALL
Rs. 5/
MEDIUM
Rs. 10/
LARGE
Rs. 20/
PLAIN SALTED YES YES YES
SPICY TREAT YES YES YES
d. DESI BEATS
FLAVOURSSMALL
Rs. 5/
MEDIUM
Rs. 10/
FLIRTY LIME YES YES
DEEWANA TAMATAR YES YES
DILDAR MASALA YES YES
Distribution Channel and strategies
“Marketing channels are sets of interdependent organizations involved in theprocess of making a product or service available for use or consumption”
- Philips Kotler
Distribution (Place) Strategies
● Product availability where and when customers want them.● Involves all activities from raw materials to finished productsBasic Channels of Distribution
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 requiringinstallation & maintenance
DISTRIBUTION CHANNELS (Pepsi)
There are two marketing channels that involve in the transfer ofproduct from the producer to the consumer. The intermediaries involved in the transfer are distributors and retailers.
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 godowns 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 delivery van, one salesman one driver, one helper etc. These units and godown are their main investment. Distributors have to invest in cases, so that they can maintain a specified quantity of reserve stock and facilitate the quick rotation of cases. 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 empties 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 complying 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 agree with the conditions of these agreement company may reduce the area of distributor or may even terminate the relationship.
RETAILERS
The sale of particular snacks product depends a lot entirely on retailer’s wish. This all goes 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,
.
HISTORY
Lay's is the brand name for a number of potato chip varieties as well as the name of the company that founded the chip brand in 1938. Lay's chips are marketed as a division of Frito-Lay, a company owned by PepsiCo Inc. since 1965. Other brands in the Frito-Lay group include Fritos, Doritos, Ruffles, Cheetos and Rold Gold pretzels. Contents
In 1932 salesman Herman W. Lay opened a snack food operation in Nashville, Tennessee and, in 1938; he purchased the Atlanta, Georgia potato chip manufacturer "Barrett Food Company," renaming it "H.W. Lay & Company." Lay criss-crossed the Southern United States selling the product from the trunk of his car. In 1942, Lay introduced the first continuous potato processor, resulting in the first large-scale production of the product.
The business shortened its name to "the Lay's Company" in 1944 and became the first Snack food manufacturer to purchase television commercials, with Bert Lahr as a celebrity spokesman. His signature line, "so crisp you can hear the freshness," became the chips' first slogan along with "de-Lay-sious!" As the popular commercials aired during the 1950s, Lay's went national in its marketing and was soon supplying product throughout the United States.
In 1961, the Frito Company founded by Elmer Doolin and Lay's merged to form Frito-Lay Inc., a snack food giant with combined sales of over $127 million annually, the largest of any manufacturer. Shortly thereafter, Lays introduced its best-known slogan "betcha you can't eat just one." Sales of the chips became international, with marketing assisted by a number of celebrity endorsers.
In 1965, Frito-Lay merged with the Pepsi Cola Company to form PepsiCo, Inc. and a barbecue version of the chips appeared on grocery shelves. A new formulation of chip was introduced in 1991 that was crisper and kept fresher longer. Shortly thereafter, the company introduced the "Wavy Lays" products to grocer shelves. In the mid to late 1990s, Lay's modified its barbecue chips formula and rebranded it as "K.C. Masterpiece," named after a popular sauce, and introduced a lower calorie baked version and a variety that was completely fat-free (Lay's WOW chips containing the fat substitute olestra).
Project Details
Name of Organization: PepsiCo India Holdings Pvt. Ltd. (Frito-lay Division)
Address : PepsiCo India Holdings Pvt. Ltd. (Frito-lay Division)
Post Box No. 27
DLF Qutub Enclave,
Phase – 1 , Gurgaon – 122002
Department : Sales
Area : Nagpur
Project Guide : Mr. Rajeev Gimonkar
Project Title : “STUDY OF DISTRIBUTION GAP IN PEPSICO INDIA LTD (WITH SPECIAL REFRENCE TO NAGPUR REGION)
Scope : 1) To find out the distribution gap.
2) To find out the areas to increase the sale.
3) To increase the number of outlets in specific areas.
Selling and Distribution System
Company Representive: 1) Mr. Biju Datta (Area Sales Manager)