Final Project by Gulam Chisty

8/6/2019 Final Project by Gulam Chisty

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JHARKHAND

2011

A

THESIS REPORT

ON

PARTNER RELATIONSHIP MANAGEMENT

OF

PEPSICO INDIA

BY:

GULAM CHISTY

09JU00200028

MBA-(2009-11)

IUJ, RANCHI


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A

THESIS REPORT

ON

PARTNER RELATIONSHIP MANAGEMENT

OF

PEPSICO INDIAS

JHARKHAND

SUBMITTED TO:- SUBMITTED BY:-

Dr.Kaushik Dutta Gulam Chisty

IUJ, Ranchi 09JU00200028MBA(2009-11)


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ACKNOWLEDGMENT

Im grateful to Mr. Subroto Chakraborty (TDM) JHARKHAND , PepsiCo India

Limited, Jharkhand for making this research a wonderful and an enlightening

experience for me. Who really suggested me to work on this topic and helped me

to collect the relevant datas and get the real gist of current scenario and also

helped me throughout the project and encouraged to take this project in future

course for my career.

I would like to express my sincere gratitude and thanks to Dr. Kaushik Dutta for

his constant support and cooperation at each step during the project and for

providing me an enlightened perspective and a very conducive environment.

I would also like to express my heartfelt thanks to all those persons who gave me

valuable guidance and support in every stage throughout the course of my entire

project work.

Gulam Chisty


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TABLE OF CONTENTS

INTRODUCTION

HISTORY OF PEPSI

SMV BEVERAGES Ltd.

STRUCTURE OF ORGANIZATION PRODUCT PRODUCTION PROCESS CUSTOMER COMPETITOR

ADVERTISEMENT

PEPSI PROMOTION

SWOT ANALYSIS

OBJECTIVE OF PROJECT

MARKET SURVEY

DEALER SURVEY

MARKET SHARE

METHODOLOGY

DATA ANALYSIS

QUESTTIONAIRE

FINDINGS

CONCLUSION

RECOMMENDATION

BIBLIOGRAPHY


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INTRODUCTION

PepsiCo entered India in 1989 and in the span of a little more than a decade it

became the country's largest selling soft drinks company. The Company has

invested heavily in India making it one of the largest multinational investors. The

group has built an expansive beverage, snack food and exports business and to

support the operations are the group's 43 bottling plants in India, of which 15 are

company owned and 28 are franchisee owned.

PepsiCo stays committed to providing its consumers with top quality beverages. Its

diverse portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up;

Mirinda; Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in

various flavors; Aquafina packaged drinking water; Gatorade plus local brands

Lehar Evervess Soda, Dukes Lemonade and Mangola.

PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's

snack food company Frito-Lay is the leader in the branded potato chip market. It

manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips;

traditional namkeen snacks under the Kurkure and Lehar brands; and Quaker Oats.

PepsiCo is one of the largest MNC exporters in India and its export business

consist of three

categories - agri business, commodities and Pepsi system sales. PepsiCo has made

significant investments with the Punjab Agriculture University to develop a

comprehensive agro-technology program that has helped thousands of farmers

across India improve the yield of their farms and the quality of their agricultural

products. PepsiCo has leveraged its knowledge in contract farming to develop

seaweed cultivation in Tamil Nadu and has partnered with the Government of

Punjab to help farmers of the state through the utilization of developed technology


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for citrus farming. 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. PepsiCo has also

established zero waste centers and PET recycling supply chains and assisted

victims of natural disasters. PepsiCo stays dedicated in its endeavor to develop

community outreach programs by supporting rural water supply schemes,

administering medical camps in villages, providing computers to rural schools and

creating opportunities for women in rural areas through vocational training as an

alternate means of livelihood.


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HISTORY OF PEPSICO

IN THE YEAR 1898, ONE OF CALEBS FORMULATION, KNOWN ASBRADS DRINK, A COMBINATION OF CARBONATED WATER,

SUGAR VANILLA, RARE OILS AND COLA NUTS IS RENAMED

PEPSI COLA ON AUGUST 28, 1898. PEPSI COLA RECEIVES ITS

FIRST LOGO.

IN 1902, BR ADHAM APPLIES FOR A TRADEMARK WITH THE U.S.PATENT OFFICE WASHINGTON D.C AND FORMS THE FIRST PEPSI

COLA COMPANY

IN 1905, PEPSI COLAS FIRST BOTTLING FRANCHISES AREESTABLISHED IN CHARLOTTE AND DURHAM, COMPETITIVE

COLAS.

IN 1941, THE NEW YORK STOCK EXCHANGE TRADES PEPSISSTOCK FOR THE FIRST TIME. IN SUPPORT OF THE WAR EFFORT,

PEPSI BOTTLE CROWN COLOUR CHANGE TO RED WHITE AND

BLUE.

IN 1960, YOUNG ADULTS BECOME THE TARGET CONSUMERS ANDPEPSIS ADVERTISING KEEPS PACE WITH NOW ITS PEPSI, FOR

THOSE WHO THINK YOUNG.

IN 1970, PEPSI INTRODUCES THE INDUSTRYS FIRST TWO (2)-LITERS BOTTLES. PEPSI IS ALSO THE FIRST COMPANY TO

RESPOND TO CONSUMER PREFERENCE WITH LIGHT WEIGHT,

REOYCLABLE, PLASTIC BOTTLES.

IN 1984, PEPSI ADVERTISING TAKES A DRAMATICS TURN AS PEPSIBECOMES THE CHOICE OF A NEW GENERATION.

IN 1991,PEPSI INTRODUCES THE FIRST BEVERAGES BOTTLESCONTAINING RECYCLED POLYETHYLENETEREPHY THALATE (OR

PET) INTO THE MARKET PLACES. THE DEVELOPMENT MARKS THE


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FIRST TIME RECYCLED PLASTIC IS USED IN DIRECT CONTACT

WITH FOOD IN PACKAGING.

IN 1992, PEPSI COLA AND LIPTON TEA PARTNERSHIP IS FORMED.PEPSI WILL DISTRIBUT SINGLE SERVE LIPTON ORIGINAL AND

LIPTON BRISK PRODUCTS.

IN 1994, PEPSI -FOOD INTERNATIONAL AND PEPSI -COLAINTERNATIONAL MERGE, CREATING THE PEPSICO FOODS AND

BEVERAGE COMPANY.

IN 1997, PEPSICO ANNOUNCES THAT IT WILL SPIN OFF ITSRESTAURANTD DIVISION TO FORM TRICON GLOBAL

RESTAURANT, INC. INCLUDING PIZZAHUT, TACO BELL AND KFC.

IT WILL BE THE LARGEST RESTAURENT COMPANY IN THEWORLD IN UNITS AND SECOND LARGEST IN SALES.

IN 1998, PEPSI CELEBRATES ITS 100 th ANNIVERSARY.

IN 2006, PEPSICO ACQUIRED IZZE BEVERAGE COMPANYN NAKEDJUICE AND STACYS PITA CHIP COMPANY IN THE US, STAR FOOD

IN POLAND, AND BLUEBIRD FOOD IN NEW ZELAND. IT HAS

EXPANDED ITS PRESENCE IN THE NON-CARBONATED DRINKS AS

WELL AS SNACKS.

IN 2006, THE COMPANYS VOLUME GREW BY 5.5%, COMPAREDWITH 2005 IN 2007, THE COMPANY PLANS TO EXPAND ITS

MARKET SHARE THROUGH FURTHER ACQUISITION AND JOINTVENTURES.


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SMV BEVERAGES LTD.

S.M.V. Beverage Pvt. Ltd, Adityapur, (Jamshedpur) a medium sector enterprise,located amidst beautiful surroundings, on the TATA Kandra road in the Adityapur

Industrial Area, and producing PEPSI range of bottled soft drinks, viz. Pepsi, 7 Up,

Mirinda, Teem, Mirinda Lemon, Mirinda Apple and Lehar Slice and had become a

household word in the Jharkhand State symbolizing achievement and advancement

over the years.

Steel City Beverages was established in 1967 and production commenced in March

1969. At the very outset the company installed state the art machines and

technology, for the production and bottling of soft drinks. The bottling plat with a

capacity of produce bottle 220 per minute is totally automatic and also had amodern state of the art inter mix machine for binging forth the right blend of

flavors. The company continuous to adopt and innovate technology in keeping

with its policy of constant quality improvements. With the advent Pepsi Food

Limited for the production and sales of Pepsi range of soft drinks for Jharkhand.

The company symbolizes self reliant in technology and ranked as the Best bottling

company in the country in terms of Quality, Efficiency, Sale, Productivity and

KRD. Till 1998, it was under the guidance of its Chairperson, Smt. Kusum Kamani

and the able stewardship of its Managing Director, Shri. Nakul Kamani, the Co.

has consistently bagged on numerous occasions, awards for Quality Assurance andProductivity, in 1993 it bagged top honors for being the best Quality conscious Plat

amongst all Pepsi Bottling companies in India.

In March 1999, Steel City Beverages Ltd. was taken over by Mr. S. K. Jaipuria

from Mr. N.D. Kamani, along with Rushabh Marketing Ltd., a marketing unit. Mr.

S.K. Jaipuria started running this plant very successfully. He was very much

enthusiastic to increase the production and sale and to capture the whole market of

Jharkhand. He established another plant in the name of SMV Beverages (Jsr) and

increased the production from this new plant. The capacity of this new plant is 600

bottles per minute. Simultaneously, another marketing, company came up in thename of Hyderabad Marketing Company, Which is catering the need of whole of

Jharkhand state.

The Companys highly sophisticated plant and quality control laboratory along

with the dedication and enterprise of its employees is more than evenly matched by


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the managements sense of understanding and compassion that has insured the

companys progress with every passing day.

The company has a sale of more than 24 million bottles. It has maintained and

nurtured a vast network of distribution for its product in Jharkhand and currently

holds way over more than 50% of the states consumer soft drinks market with an

estimated growth annual turnover of over Rs. 10 corers. The company is

currently in pursuit of the coveted ISO9002, which it is confident of achieving

and would hence become the first food product factory in India to do so.


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STRUCTURE OF THE ORGANIZATION

For the every concern a structure is necessary on which the complete organizationshould be founded. To have a structure is not a choice of the organizer. The choice

is only of the form and pattern of the organization. Planned organizational structure

may be proved logical clear cut and streamlined in order to meet the present

requirements. Otherwise it will merely be a makeshift arrangement and the

management in rendered difficult and ineffective because organizational structure

affects everyone in the organization. A good organizational structure facilitates

efficient management and the operation of enterprise and it encourages growth. It

helps organization to reach its predetermined goal.

In order to make the organizational structure more effectible one structure that can

meet the demand of various factors namely environment, technology, size and

people. SMV Beverages (Jsr) has duly considered these factors to build and

efficient organization structure. As it is a medium scale enterprise and fully

automatic, the manpower requirement is less. Hence, like any contemporary

company, it has adopted a flat structure.

Following are the major features of the organizational structure of SMV Beverages

Ltd.

y Clear lines of authority.y Adequate delegation of authority.

y Minimum Managerial skill level.

y Unity of Directors.

y Applications of ultimate responsibility.

y Span of control.

y Simplicity.

y Flexibility.

y Due consideration for top groups.

SMV Beverages (Jsr) has a management board headed by its unit manger &

Director Mr. P.S. Kumar. He is responsible for overall policies regarding

managerial decisions and all the executive functions. He looks after all the

functional departments like productions, Sales, account, personnel & purchase.

Every department is headed by their respective managers who sends reports to the

unit manager and are responsible to him in every sense of working.


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The Plant Manager is the head of the production department. He looks after

production i.e. bottling process, inspection, and storage of new materials and

maintenance of the plant as a whole. He also Heads the quality control department

through quality control manager.

The controller of accounts heads the accounts department; under him there is a

chief accountant. The purchase officer is in charge of all purchase activity of

concern. PAC (Product availability Co-ordinator) is in charge of shipping

department, coolers and PMX.

Personnel department is headed by the personnel manager and looks after the

function of administration, industrial relation, legal jobs, security welfare etc.

The HMC Hyderabad Marketing Company In these two units, the Head of Sale

and Marketing is in charge of all the marketing activities i.e. sales promotion,

publicity, advertisement, market survey, and shipping. Though his main function is

to have a control over the outlets distribution, Sales Manager is assisted by salesexecutive and sale supervisor.


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PRODUCT

PRODUCT IN JAMSHEDPUR

y PEPSI

y PEPSI DIET

y MIRINDA

y 7 UP

y MOUNTAIN DEW

y SLICE

y AQUAFINA

y TROPICANA TWISTER

y LEHAR SODA

y NIMBOOZ


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PRODUCTION PROCESS

The bottling process at STEEL CITY BEVERAGES is automatic. The variousunits of this plant are:

WATER TREATMENT UNIT

Water in the STEEL CITY BEVERAGES LTD. Come from Sitarampur dam

and is stored in a reservoir. Before ensuring production, this raw water is treated in

the water treatment plant.The process involved is known as coagulation process.

Main chemicals, which are used, are ferrous Sulphate (FeSo4), calcium hydroxide

(CaOH) and chlorine (Cl). Initially water is treated with all these chemicals in the

treatment tank and becomes turbid. All impurities get settled at the base and

remove the turbidity. Next it is sent to a sand filter to remove the turbidity. Then it

is sent to the CARBON TANK where all the microorganism and chlorine is

removed the water so obtained is completely free from any king of impurity and is

ready to be used in further processing the maximum alkalinity is maintained until it

is as much as 50 p.p.m.

ROLL CONVEYOR

This automatic operation machine takes the dirty empty bottles for washing. A

person is required to put the empty bottles on the roller conveyor.

CLEANING (THE BOTTLES) UNIT

Used bottles returning from the market are stealthy. It is completely an outer

process, which takes place within a machine. The machine has three

compartments. Bottles for washing placed on conveyor come inside the machine

and get successive treatment. Bottles are treated with 4% caustic soda in the frost

compartment at the temperature, 100-115F. Next these are conveyed to the second

compartment where bottles are again treated with 2% caustic soda at the

temperature 120F. In the third compartment bottles are treated with sort ware.

Time duration in the each compartment is 10 minutes.

CONVEYOR CHAIN

These are for the movement of sterilized empty, filled and crowned bottles.


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LIGHT SCREEN

To check if any dirty part is unwashed in the sterilized bottles, which are coming

through conveyor chain? This checking is again crowning.

SYRUP ROOM

Syrup room is situated on the first floor. Here syrup is prepared from filtered

water, sugar and the concentrate. The room is well equipped with several tanks and

filter press. The first one is heating tank is which syrup is actually prepared.

Calculated amount of sugar along with concentrate and water is heated up to 850C.

Thus a saturated solution is prepared. Next it is sent through a machine called filter

press.

FILLER MACHINE

Washed empty bottles enter into this through conveyor chain and then they arefilled with exact quantity of beverages.

CROWNER

The filled bottles are crowned with metallic caps to protect the purity of content.

Then the bottles are given the batch no., year, etc. with the help of laser machine.

Thus the whole process from washing to crowning is automatic. The filled bottles

are lifted manually from conveyor and placed in crates. The bottling of beverages

is carried out at a rate of 240 bottles/min. The new bottling unit has been

established in order to pace the bottling process in the month of February. After

establishing the now production unit the rate per minute raised to 600. Before it

was 440 bottles per minute.


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DISTRIBUTION CHANNEL OF SMV BEVERAGES LTD.


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Channel of distribution followed by the SMV Beverages Pvt. Ltd.

The channel of distribution is one of the essential activities, which is the

responsibility of the sales department. The best alternative strategy is followed by

the sales department of SMV Beverages private limited to distribute the processedsoft drink so that product is available at right time and at right price. The company

uses the following marketing distribution channel: -

The product after processing is firstly supplied to the distributor or wholesalers

from the plant or manufacturing unit. The whole area in around Ranchi is divided

into the several zones and routes. Thus the retailer cannot take the delivery directly

from the manufacturing unit. They have to take it from their respective distributorin the particular zone of route. The distributors are selected on the basis of

assurance given by them regarding the minimum sales, which they have targeted

annually. Depending upon the market each distributor in its initial stage has

deposited some security money this amount varies between the distributor-to-

distributor and area-to-area. There is not any fixed criterion for retailer or outlet

Manufacturing

Unit

Distributor orWhole seller

Retailer orOutlet

End Users


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but some time its selection is dome on the basis of sales of caret per day. There is

no direct relationship between the retailer and the company.

There are lots many of exclusive outlet which is given more preference in order to

meet product available. Most of the retailer are beetle shop, restaurant, grocery

shop, STD booth, Medicine shops etc. who are having the stall for the sales soft

drinks. These retailers have to give the assurance to the concerning distributor for

better sales and the time of thanking delivery. They have deposited the security for

the empty carets with specified retailer purchasing price. The distributors at first

have to seek the permission of the sales department for the number of cases of soft

drinks required by them. After getting the proper authority from the sales

department the distributor then sent their delivery through route vehicles to the

respective outlets that so ever have paid the requisite sum of money either by cash

or draft and deliver the filled carats and get back the empty carats.


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Decisions with respect to distribution channel focus on making the product

available in adequate quantities at places where customers are normally

expected to shop for them to satisfy their needs. Depending on the nature of the


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product, marketing management decides to put into place an exclusive,

selective or intensive network of distribution, while selecting the appropriate

dealers or wholesalers.

y Direct Distribution:

o Delivery of post mix cylinders & handling of key accounts: the keyaccounts are different wholesalers, restaurants and hotels like Pizza

Hut, KFC, Metro which serve as a place for key sale. These are

known as national key accounts and are very important in term of

competition.

o Export Parties

y Indirect Distribution:

o Through base market distributors

o Through outstation distribution

Before delivering the product some certain guiding principles are followed for the

assessment of distributors capacity:

o Applicant must have 20 to 25 vehicles (depending on the area)

o Applicant must have 20,000 cases of empty bottles

o Applicant must deposit Rs. 1,00,000 as a security

This is usually done through taking over key revenue areas. If the distributor doesnot achieve its sales target, the distribution is taken back and an addition of new

distributor is done. Therefore Pepsis supply is low supply uncertainty. Some of its

supply source capabilities are:

y Less breakdowns

y High quality

y Flexible supply capacity

y Mature production process


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CUSTOMER

In Tier 1, 2 and 3 cities in India, 29% of Indian consumers report consuming

carbonated beverages/soft drinks during a fixed time of the day suggesting

consumption has become a routine part of their day, with most consumption taking

place during the 'afternoon to evening' time period. Not surprisingly, consumption

is highest in Tier I cities such as Mumbai, Delhi, Kolkata, Chennai, Hyderabad and

Bangalore. The level of consumption is seen to increase with rising household

incomes (with the exception of the highest income level) while decreasing with

age.

The Indian soft drinks market is not under any regulation. Prevention of Food

adulteration act 1954 does not include soft drinks. None of the BIS standards thatexisted before August 2003 had any guidelines or set criteria for the residue levels

of pesticides in the soft drinks. But different lie agencies have set standards for the

residue levels of pesticides. The European Economic Community (EEC) sets the

maximum admissible concentration of individual pesticides and related products in

drinking water at 0.1 parts per billion to ensure that the toxicity is not dangerous to

human beings. For a few pesticides like aldrin, dieldin and heptachlor epoxide the

admissible limit is even more stringent, i.e., 0.03 parts per billion.

He is the person who is selling the same type of product in the market.Themarketing concept states that to be successful, a company must provide greater

customer value and satisfaction than its competitors do.


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COMPETITOR

Pepsi has a tough competition with Coca Cola while it faces a little competition

with the local producers like RC Cola, Shandi Cola etc. The local producers hardly

affect the sales of Pepsi in the market.There are different types of competitor in the market. Some of them in which our

product lies are discussed below:

Close Vs Distant Competitor:

Pepsi and Coke are close competitors. It means that both have direct competition in

the market, their products are close substitutes for one another. Both the products

can influence the market share of one another through effective strategies made to

cope up with their competitors.

Pepsi cola and Nestle juice are distant competitors of one another. It means that

their products satisfy the same want but they are in indirect competition with one

another.

Strong Vs Weak:

Coca Cola and Pepsi are strong competitors. Pepsi is the market leader and Coca

Cola is its competitor. The Pepsi makes defense strategies so that it can maintain

its position in the market. While Coca Cola is a challenger and it makes attack

strategies so that it can become the market leader.

Pepsi and Shandi Cola are weak competitors. Pepsi is the market leader and Shandi

Cola is the follower. Pepsi is not in direct competition with the Shandi Cola. It

means that Shandi Cola has little effect on the sales of Pepsi.

Pepsi Cola is situated in an industry that is dominated by two competitors, Coca-

Cola and of course themselves. Although Pepsi and Coke basically go after all


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consumers who purchase soft drink beverages Coca-Cola targets its products at the

head of household.

This is evident in many of the ad campaigns such as Always Coca - Cola which

refers to the traditional beverage heritige of its product. They also reinforce this in

the name Coca-Cola Classic which is inferring to the older consumer. This namereflects an image of value, reliabilty, and old time values. Pepsi Cola throughout its

100 years of existence has developed many strengths. One of the strengths that has

developed Pepsi into such a large corporation is a strong franchise system.

They have also made wise investments in snack food companies like Frito Lay,

which at present time is the largest snack company in the world. Probably high on

the list of strengths is Pepsis beverage line up. Pepsi has four soft drinks in the top

ten beverages in the world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and

Caffeine Free Diet Pepsi. Pepsi also has the #1 tea in the United States, Lipton Tea.Some other strong brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and

a license agreement with Ocean Spray juices. Pepsi Cola like any company has

weaknesses. Ironically, the one strength that has been credited for most of its

success in the past has now become a weakness for Pepsi. This former strength is

the franchise system. The franchise system in Pepsi Corporate view has become a

liability. Pepsi in todays market must be able to act as one instead of several

separate units. The franchise system has become a hurdle to Pepsi because many of

these franchises have become very strong and will not be dictated by PepsiCo on

how to handle their operations. Some of these franchises are unwilling to support

certain Pepsi products and at times produce their own private label products that

are in direct competition with Pepsi products. Secondly the franchisees are not

willing to make capital expenditures to keep up with Coca-Cola who is a firm

believer in reinvesting into their infrastructure (Coca Cola at present time does not

operate a franchise bottling system). Another weakness that Pepsi is inferior is in

the fountain soft drink division. This has always been a problem for Pepsi because

of their ownership in fast food restaurants. Coca Cola has for years been in the top

locations for fountain beverages because they simply tell the account Pepsi is their

competition because of their ownership in Taco Bell, Pizza Hut, KFC, and many

others. As mentioned earlier Pepsi has tried to eleiviate this problem by spinning

off their interest in fast food restaurants but at present time are still guilty by

association to many of the large fountain accounts. The franchise system has also

effected fountain sales due to the fact franchisees are not willing to by expensive


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fountain equipment to placed in accounts mainly because the profit margin is so

low and could take years to recoup their investment. Pepsi also has a weakness in

the international beverage market. Unfortunately for Pepsi they were a Johnny

Come Lately into this arena. Pepsi has tried to enter this market by trying to do in

three years what took Coke 50 years to do. This area will take years for Pepsi tomature simply due to Cokes dominance in the international market and the strong

ties that Coke has developed with these markets and their governments. Pepsi

customers buy nearly five billion gallons of soft drinks per year. Pepsi customers

buy their products because of taste, price, packaging, promotional factors and of a

wide variety of brands. Pepsi customers also buy their products due to the high

accessibility of Pepsi brands. Pepsi products are distributed to many outlets. For

example, supermarkets where Pepsi buys large shelf area and display areas so the

customer can find them easier, Convenience stores, gas stations, delis, restaurants,movie theaters and almost and other conceivable spot. Pepsi has a competitive

advantage over Coke because of the image it portrays. Pepsi promotes itself as the

choice of the New Generation. Pepsi gets this advantage by implementing such

large marketing projects like Project Globe.


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ADVERTISING

Advertising is any paid form of non-personal mass communication through

various media to present and promote product, services and ideas etc. by an

identified sponsor.

PepsiCo has advertised its products through many different ways and media.

Through TV we have seen different advertisement of its products such as Pepsi

or Dew. PepsiCo also advertise its products by targeting those favourable

television programs, like sports, series and also PepsiCo uses some events like

Pepsify Karogey? to promote its products.

Through newspapers like Jung and Dawn, PepsiCo has advertised a wide range

of products its offers to its customers. And also through Posters a message has

been sent to lot of people to be aware of the products which PepsiCo offers.

PEPSI PROMOTION


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Promotion is a key element of marketing program and is concerned with

effectively and efficiently communicating the decisions of marketing strategy,

to favourably influence target customers perceptions to facilitate exchange

between the marketer and the customer that may satisfy the objective of both

customer and the company.

A Companys promotional efforts are the only controllable means to create

awareness among publics about itself, the products and services it offers, their

features and influence their attitudes favourably.

SWOT ANALYSIS


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In order to get clear understanding of the position of Diet Pepsi in the various

markets we did a SWOT analysis from the data obtained from the survey and

the various retailer interviews

STRENGTHS:

y PACKAGING AND PRICING Pepsi has the advantage of having

provided the same kind of health based carbonated drink the Slim Diet Pepsi

Can which in comparison to the Diet coke is a much more attractive offering

because it is slim sleek equally healthy and way cheaper.

y DISTRIBUTION As already mentioned Pepsi India has one strongest and

most efficient sales and distribution networks not only in India but also

throughout the globe. Also in the particular market where the survey was

done the sales people have developed a network which is powerful enough

to make or break sales for Pepsi in any given quarter

y

P R One of the most important factors of success of PepsiCo in India is therelationship the company and its constituents have with the channel partners.

The Company officials and even the employees of FOBO have very good

rapport and relations with the Channel partners. Also the recently introduced

retailer benefit schemes such as the gold card membership and other free

gifts and offerings not only motivate the retailers but also helped us create

visibility for the Slim Diet Can range in a profound. The experience of

working with people who welcome us with a smile rather than a frown will

always be remembered.

y NON-CARBONATED This is one those strengths of Pepsi that often

goes unnoticed but plays a very important role in success of Pepsi in India


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and even around the globe. The non-carbonated segment is dominated by

Pepsi, Tropicana is the market leader in fruit juices. In the mineral water

segment, Aquafina clearly outsells Kinley without ay fuss.

y Bottling Pepsi has the advantage of being in partnership with the largest

bottler in India, the R K Jaipuria Group. RKJ Group controls almost 65% of

the bottling operations of PepsiCo in India. At times this is also seen as a

weakness of Pepsi in India attributing to the fact that the Jaipuria group is so

strong that in certain circumstances it can even defy the parent Company.

y Pepsi Pepsi Cola is the biggest strength of Pepsi as it is the market leader

in the Cola segment and clearly outsells both the products the Coca Cola

Company namely Coke and Thums Up. Pepsi controls almost 60% market

share in the Cola segment.

WEAKNESS:

y SECOND MOVER DISADVANTAGE - Diet Pepsi Cola does have the

first mover advantage which Diet Coke has and this may prove to be a major

shortcoming also in the Agra Market no Extensive efforts have been made to

popularize it.

y Brand On a comparative scale Diet Coke proves to have a better brand

image in customers mind than. This compels to incur extra expenditure in

Advertising, Promotions and Sponsorship.

y MCDONALDS This is one of the most important reason why Diet Coke

outsells Pepsi worldwide and specially in the United States. Similarly, in


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India Diet Pepsi may suffers in sales because of institutional sales. Now

Pepsi is trying very to bridge this gap in the near future.

y EXPENDITURE Right from the very beginning Pepsi has hired the

biggest and the most expensive stars in the country as its brand ambassadors

and has spend heavily on advertising which has affected its balance sheet.

y Vizicoolers At presently this is one the biggest problems faced by Pepsi.

Pepsi is not able to get refrigerators in India so they have to import it other

namely Sri Lanka, Mauritius etc. Because of this, retailers are facing lot of

problems in Vizicoolers. They are not able to get new refrigerators,

replacements for old ones, even the repair work takes lot of time because at

times even the spares are not available on time.

OPPORTUNITIES:

y Lowest Per Capita Consumption Even after almost decades of presence in

the market, there are growth opportunities for Diet Pepsi in India as here the

per capita consumption of carbonated beverages is one of the lowest in the

world.

y Health Based: apart from its Juice Based drinks portfolio Pepsi can Use theSlim Diet can to the maximum by promoting it as a health drink at Cheaper

prices.


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THREATS:

y NGOs NGOs like CSE can seriously hamper the sales and prospects of

companies operating in this industry. This happened during the pesticide

controversy involving both coke and Pepsi.

y HEALTH Growing health awareness among people and some of ill

effects of carbonated beverages have pursued many people to switch over to

non-carbonated beverages that can seriously hamper the long-term prospects

of the entire Industry and not Pepsi.

y ENVIRONMENT Environmental concerns are often raised because of the

massive amount of water extracted by the bottling plants resulting in the

drop in groundwater level which affects the local population adversely.

y In India PepsiCo adopted the strategy of growth through intensification. In

the intensification strategy, it used market penetration by developing one of

the strongest sales and distribution network in the world and utilizing it to

the fullest.

y Pepsi did market development by making the aware of the best products

available at their disposal, by using the best technology to produce the

products, by properly communicating with the customer, and making the

customer realize that he is important. Pepsi also explored new markets by

venturing new segments like fruit based beverages, sports drinks, snack food

division.

y Pepsi expanded and established itself in the market place by constantly

developing new products to the customers, like Tropicana, Gatorade, and


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Pepsi Blue. In this way, Pepsi was also able to effectively counter the threats

posed by substitutes and new entrant


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OBJECTIVE OF THE STUDY

The main Objective of the study aims at exploring the strategies followed byPepsiCo India to manage its various partners both internal as well as external since

it started its operations in India. This study will also explore what changes PepsiCo

India is bringing in order to increase its visibility and market presence to tackle the

ever increasing hold of Coca Cola on the Indian beverage market.


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MARKET SURVEY

One of the most effective tools of the market research technique is Market survey.

We can know the actual facts and figures regarding. The product through market

survey.

Any business organisation has to sell its product in the market. The largest share of

market a company has the better its profit margin will be. To increase the market

share the company should come out with a product which best satisfies the

customer need.

To find out the customer need and market demand the company should survey the

market and the process is knows as market survey.

Based on this survey the company goes for following function.

1. Market Development Function.

2. Product Development Function.

The Report on over all Marketing activities in Ranchi is based on two different

types of survey:-

y Retailer Survey.

yThe retailer survey as the word indicates is the survey of every retailers of soft

drink in the area. For my practical purpose the dealer only includes the authorized

dealer appointed by the company, but it also includes the retailer- big or small

grocery shops, stationary, restaurant, betel shop etc. beside these, the various

exclusive stalls and sales of pantry cars also included in it. In a nutshell, by dealer

we mean, those who are dealing in soft drink in some way or the other, in large our

study, directly or indirectly.

Thus our study includes all such dealers. EDS includes various aspects:

y Route-wise no. of dealers

y Crate strength

y Per day sales

y Chilling aid


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y Advertisement

y Nature of outlets

y Scheme and pay-offs etc.

While conducting the survey of dealers, a format was provided to me, which ask tofill up by the dealer so that it meets the requirements of the organization. The

dealer survey as mentioned earlier includes a variety of dealers.


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DEALER SURVEY

Since Retailers/Dealers are supposed to be very close to the consumer. They can

know the choice and taste of a consumer very well.The following important

information we come to know by Dealer/ Retailer Survey.

Market position of Pepsi

Distribution effectiveness.

Price effectiveness.

Service of chilling equipments

Schemes Availability.

In Ranchi 3 me have survey all parts of this small town

In Ranchi 3 area Karamtoli to Booty More and on the national highway Booty

more to Chutupalu.

We have surveyed about 120 outlets/Shops in jamshedpur.

1.MARKET POSITION OF PEPSI.

From our survey we find that Pepsi faces a tough competition from its rival

Company Coca-Cola. Thumps-Up a product of the Coca-Cola Company gives a

stiff competition to Pepsi. We find that Thumps-up gives a tough competition to

Pepsi Cola.

Sprite gives a tough competition to Mountain Dew. But Dew is also is saleable

than sprite.

Mirinda and slice is also more Saleable than Maaza. Because of the better taste

slice is more demanded in the market.The Customers of slice includes the females and middle aged persons; who just

want to taste the Mango Juice.

Mirinda is also more demanded by the female consumers.


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On the basis of the survey we come to know that it is due to the sweetness of

Pepsi which makes its market power a weaker one. On the other hand Thumps-up

hardness gives it more value at the market.

2. DISTRIBUTION EFFECTIVENESS :-

We find that the summer season is the Peak season for the Cold Drinks. That's

why a special case should be taken for the distribution of Pepsi products. These

includes that the supply should be regular.

Irregular supply effects the marketing of Pepsi. The Retailers says that it is upto

then for the selling of a product. Whatever product is available to them they will

sell that item. if Coca cola- supply is regular they can sell the Cola-Cola product

if the Pepsi supply is not regular and good. That's why the Retailer wants the

regular supply and best service from the company during the peak reason.

"From our survey we found that the supply of Pepsi products is regular. Although

in some areas like. Imlichowk dandlibasti saldis basti the supply is not regular

because of less number of vehicals. The Retailers, however, manages to get Pepsi

from other other side dealer.

We find that during the peak season sometimes supply problem occurs. But

according to my thinking the main reason of irregular supply is shortage of pepsi

products in distributor godown. However, Retailers also know that the supply

sometimes hampers during the peak season.

PRICE EFFECTIVENESS :-

From our survey with regard to price we come to know that the increase in price

of 200ml (Pepsi) does effect the selling of Pepsi. However this increase in price

does not effect too much to the selling of Pepsi Products. However, the price is

same as that of the Coca-Cola products. Hence we find that the increase in price

affects the marketing of both the products i.e. Pepsi and Coca-Cola.

4.SERVICE OF CHILLING EQUIPMENT OF PEPSI :-

The service of Chilling equipment of Pepsi is not satisfactory to all the

users/Retailers/Shopkeeper.The mechanic of the company is not regular at the

place where required. Retailer/Dealers/Shopkeepers complains about the less

cooling of Pepsi freeze. But they satisfied from the cooling equipments of Pepsi.


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OVERALL MARKET SHARE

1.COCA-COLA 43.9%2. PEPSI COLA 30.9%

3. CADBURY SCHWEPPES 14.5%

BREAKDOWN OF MARKET SHARE

1. COCA-COLA CLASSIC 20.6%

2. PEPSI COLA 14.5%

3. DIET COKE 8.5%

4. MOUNTAIN DEW 6.3%

5. SPRITE 6.2%6. DIET PEPSI 5.9%

7. 7-UP 2.3%

8. CAFFIENE FREE DIET COKE 1.8%

9. CAFFIENE FREE DIET PEPSI 1.0%

10. DR. PEPPER 0.6%

FOUNTAIN SALES (FOUNTAIN SALES ARE CREDITED FOR 27% OF

SODA SALES)

1. COCA-COLA 65%

2. PEPSI COLA 23%.

MARKET SHARE OF VISI COOLER


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Chilling equipment is an important factor for selling soft & cold drinks.Without

freeze & VISI cooler the sale of soft drinks is not possible. Every dealer has an

chilling equipment. In some cases company also provide chilling equipment.

Company whatever provide chilling equipment it is totally different from general

freeze. In this case the freeze outsider has advertise the product e.g Pepsi Dew 7up

slice etc. for e.g in a market one of the dealer has good sales of soft drinks. He has

4ct , 3ct , 4ct various type or flavour soft drinks. His visi cooler has not sufficient

space to chilled the all product at a time. He tell the problem to the company and

request that to provide a visi cooler. Companies employee come to the dealer and

analyze that it is necessary to provide a visi cooler or not. Then company provides

the visi cooler to the dealer.

Market share of visi coolerSL.NO Company Est Mark. Share

1 Pepsi 54.50%

2 CocaCola 45.50%

This is one of the most important supports for the dealers which help them to keep

the product chilled and freash.

METHODOLOGY

PEPSI

54%

COCA COLA

46%

Market Share Of Visi cooler


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Data was collected as primary. Primary data is the data taken from the source itself

and is first hand knowledge of the same.

We were given the task of going to the respective outlets and collecting the data on

the per day sales, cold stock, warm stock and the refrigerator brand of the retailer.

Also any complaints and comments of the retailer was also to be recorded.

The steps involved were formulating a questionnaire, finding out the number of

retailers of Pepsi and coca cola in a given area then going to the outlet and

performing an each dealer survey of the area.

DATA COLLECTED


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I have tried to visit each and every outlet and personally interviewed them. In order

to know the market share of Pepsi. I have conducted a survey at Hinoo distributorpoint and its surrounding areas.

The numbers of outlets, which are covered by me in different area of Hinoo

distributor point , are as follows:-

S. No. Location (Ranchi) No. of Outlets

01 Dhurwa 1102 Hatia 2

03 Sector 2 9

04 J.P.market 4

05 Hinoo 7

06 Doranda 5

07 Niwaranpur 3

08 Kadru 5

09 Tipudana 4

10 N.O.P 5


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S.no Shop name Owner name Address

Brand

sold

Other

brand

Sale

per day

in carat

Fridge

brand

1 Gopal store Gopal Kadru pepsi coke 3 to 4

320

litres

2

Khushi

General. Store Ranjan Kumar Kadru pepsi coke 3

220

liters

3

Keshri cig.

Shop Ashok Pandey Kadru pepsi coke 2 no

4 Lalkar Video Manoj Kumar Kadru pepsi coke 2box

220

liters

5 Kadru Sweets Jeewan Bose Kadru pepsi coke 3

220

liters

6

Swadist

Mistanna

Bhandar Bimal Ghosh Kadru pepsi no 5 to 6

340

liters

7 Reliance Fresh

Mukesh

Ambani Kadru pepsi coke 6 boxes no

8 Priti Shringar S.K.Goswami Kadru pepsi no 1 no

9 Gujrat Sweets Rajesh Kumar Niwaranpur pepsi coke 2

340

liters

10 Matchless Md.Akhtar Niwaranpur pepsi no 2 to 3

220

liters

11

Hatia General

Store Dharampal Hatia pepsi no 1 no

12

Umar General

Store Ajay kumar Hatia pepsi coke 1 no

13

Jai Matadi

Store Gautam Doranda pepsi no 1 no

14

Munna

General Store Murad Doranda pepsi coke 5 no

15

Delhi General

Store Jasbeer Doranda pepsi coke 3 to 4

220

litres

16Purva General

Store Satyendra Doranda pepsi coke 1 no

17

Kwality

sweets Pradeep Hinoo pepsi coke 2 to 3

220

litres

18 Shankar store Deepak Hinoo pepsi coke 3 no

19

Chedi pan

dukan Raj Bahadur Hinoo pepsi coke 2 to 3

220

litres


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20

Dhurwa

sweets Baba Saheb Dhurwa pepsi coke 6 to 7

340

litres

21

Patel General

Store Rajesh Kumar Hinoo pepsi coke 2 no

22

Baba Peda

Dukan Shankar Dhurwa pepsi coke 2 to 3 no

23 Ray Phonex Raj Kumar Dhurwa pepsi no 2 no

24 Ranjan Std Ranjan Dhurwa pepsi coke 3 no

25 Sreekant Store Sreekant Dhurwa pepsi coke 2 no

26

Ramesh

General Store Ramesh Dhurwa pepsi coke 3 no

27Kumar

General Store Ashok kumar Dhurwa pepsi coke 3 to 4 no

28 Balaji store shila singh Hinoo pepsi no 4

220

litres

29 New pariwar rajeev gupta Hinoo pepsi coke 7 to 5

220

litres

30 Reliance fresh Hinoo pepsi coke 9 boxes no


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DATA ANALYSIS

After analyzing all the aspects of the data available and giving some important

recommendations a suitable conclusion which should be derived for this study.

However, before starting the conclusion part, the objective of the research must be

kept in mind so that we can arrive at a befitting conclusion for the research

problem.

The primary objective of this research was to develop a complete understanding of

the overall functioning of PepsiCo India including the sales and distribution

network and marketing (Partner Relationship Management to be precise).

The data collected provided a sound base for understanding the overall

organizational set up of PepsiCo in India. By analyzing the data and the, following

conclusion was inferred:

y The Sales and Distribution Network of Pepsi is very strong and almost

flawless.

y

PepsiCo India had the first mover advantage when it entered the market andit capitalized on that advantage to grab the market.

y Franchisee based operations combined with the Companys operations add

strength to the overall presence of the Company in the market.

y Franchisee takes care of its operations and PepsiCo does not interfere in its

operations. The Franchisees are required to report to the Company at

specific time intervals.

y The Advertising Campaigns are conceived, implemented by the PepsiCo and

Franchisee has no say in that.

y Because of fierce competition PepsiCo has spend heavily on Ads in order to

increase the brand recall and successfully face the competition.


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QUESTTIONAIRE

QUESTIONNAIRE FOR RETAILERS: Name of the shop/outlet: ..................................................................

Address/Location :

.......................................................................

Type of outlet : ............... ............... ................ ........... .....

(a) General Store (b) Pan Shop

(c) Sweet Shop (d) Lassi /Juice Shop

(e) Dhaba /Canteen (f) Others

l .Q. Which brand of soft drinks you deal in ?(a) Pepsi (b) Coca-cola

(c) Both (d) Other

2.Q. Which brand of cola provides you better facility ?

(a) Pepsi (b) Coca-cola (c) Both

3.Q. How many crates of Pepsi & Coca-Cola you sell/day ?

(a) 0-1 crates (b) 1-2 crates

(c) 2-3 crates (d) 3 & above

4.Q. Which companys signage you have in your outlet ?

(a) Pepsi (b) Coca-Cola

(c) Both (d) No signage

5.Q. Which companys visi - cooler you have in your outlet?

(a)Pepsi (b) Coca-Cola

(c) Own (d) both

6.Q. Which medium effects the sales most?

(a) Television (b) Magazines/Newspapers

(c) Display (d) Wall paintings/Hoardings


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7.Q. Do you think that aggressive advertising further increase the sales volume of

Pepsi?

(a) Yes (b) No

8.Q.What kind of promotional activities affect sale mostly?

(a) Free bottle scheme (b) Prize

(c) Discount Crates

10 Q Contact person & contact number for further queries?

.

12Q. What is the total number of Pet (Plastic) bottles in your outlet?

13Q. How many VG coolers of Pepsi & Coke in your outlet?

Pepsi Coke Own

14Q. Which company, Pepsi or Coke gives more schemes?

15Q. Soda of which Company do you keep.?

Pepsi Coke


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FINDINGS

Satisfaction level is also good.

The dealers want more promotional scheme, gifts and quality service.

The dealers want a soft strategy for replacement of lickage bottles.

As per I have visited to dealers outlets, I found that most of the dealers are

selling only Pepsis products.

Some dealers are happy with Pepsi products. They got the products by the

company on time due to good distribution channel.


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CONCLUSION

Market share of Pepsi is increased because of effective distribution channel and

demand of the consumers. Since in Jamshedpur and its surrounding area heat

descends more as compared to other parts of the states so obviously demand is

more in this region. The marketing activities of SMV beverages are good but there

is a need of some more promotional activities. Besides this there is certain more

conclusions which are as follows:-

1. Pepsi has got far better position and giving the tough competition to its

competitor coke.

2. Almost all the age group of the consumer like Pepsi and its different flavors.

3. Mirinda is the market leader in orange flavour while Thumps-up is the

leader in sprit flavour and 7up is the leader in cloudy lemon flavour.

4. In pet bottles segment Pepsi is dominating Pepsi has acquired almost 70-

75% share in this segment.

5. 200ml of almost all the flavor has got a significant position in the market and

are in high demand.

6. The young generation is very crazy about the Pepsi and its various productsbecause of its sponsharship of different cricket tournament and bollywood

stars like Ranbir kapoor, Dhooni Deepika padukoan .

7. Pepsi "YEH PYAAS HAI BADI" and Yeh hai Youngistaan Meri jaan

slogans are excellent.


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RECOMMENDATION

Pepsi-Cola should improve the design of the package. As it is advertised as thechoice of new generation the design must be looked young and fresh. So the

colour should be more sharp and attractive.

Distributors should given attention towards the retailers in rural areas. As from the

survey I found that majority of the retailers in these areas preferred to sell Pepsis

products inadequate in number and on time.

I found that there is high demand for soft drinks products during the summer

season so by launching Mobile PepsiCo shop we can attract new customers

especially the college students.

As PepsiCo has always targeted the youth so new posters including the recent

cricketers endorsed for Pepsi AD can be distributed among the retailers to attract

the customer.

From a very long time PepsiCo products are coming with the same type of carat.

So there can be change in carats model as these are also means of ads for a retail

outlets.


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BIBLIOGRAPHY

www.PepsiCo.com

www.Pepsizone.com

www.Pepsiindia.com

www.google.com

Final Project by Gulam Chisty

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