CHAPTER-1 INTRODUCTION TO THE STUDY Beverage industry is one of the fast growing industries in India. It can be divided in to two sections i.e. carbonated and non-carbonated. The carbonated drinks that further classified in to cola, lemon, orange, mango and apple segments. Marketing includes all the activities like promotion, distribution, advertising etc. Marketing is also to convert social needs in to profitable opportunities. So this topic provides all the essentials to theoretical as well as practical knowledge and to inculcate its efficiencies. It will help the company ultimately to achieve their goals. The soft drinks companies are experiencing a boom in soft drinks, although growth of other cold drinks is not quite encouraging. The markets of soft drinks are mainly triggered by the entry of two players i.e. coca cola and Pepsi. PepsiCo India is striding ahead rapidly towards enabling the global vision to be the world's premier consumer products company focused on convenience foods and beverages. PepsiCo India seeks to produce healthy financial rewards for investors as it provide 1 | Page
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CHAPTER-1
INTRODUCTION TO THE STUDY
Beverage industry is one of the fast growing industries in India. It can be divided in to
two sections i.e. carbonated and non-carbonated. The carbonated drinks that further
classified in to cola, lemon, orange, mango and apple segments. Marketing includes all
the activities like promotion, distribution, advertising etc. Marketing is also to convert
social needs in to profitable opportunities. So this topic provides all the essentials to
theoretical as well as practical knowledge and to inculcate its efficiencies. It will help
the company ultimately to achieve their goals. The soft drinks companies are
experiencing a boom in soft drinks, although growth of other cold drinks is not quite
encouraging. The markets of soft drinks are mainly triggered by the entry of two players
i.e. coca cola and Pepsi.
PepsiCo India is striding ahead rapidly towards enabling the global vision to be the
world's premier consumer products company focused on convenience foods and
beverages. PepsiCo India seeks to produce healthy financial rewards for investors as it
provide opportunities of growth and enrichment to its employees, business partners and
the community’s in. Which it operates. PEPSI has gained its dominance in terms of
beverages as well as food. In partial fulfillment of the above mentioned course a
project was undertaken by me on the topic SALES AND DISTRIBUTION, . To know
the facts regarding the above topic, I visited a market and outlets that given to me
during my training that includes retailers and distributors ant Pepsi outlets in Patna. My
interest was to have a look on sales and distribution procedure practices by Pepsi and
have a look on sales strategy adopted by Pepsi Patna …
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The company wants to give maximum satisfaction to its customers, so that they
can get good value for their capital. The company wants to know whether the
consumers are satisfied with their services or not? Whether consumers have faced any
problem with the product and if any then what type of problem they are facing?
Whether the retailers are satisfied with the promotional schemes of the
company? What should be the changes that will improve the quality of services? What
are the competitive advantages the company has over the competitors and where the
company lacks? What are the opportunity and threats in the external environment and
how the company scheme for the opportunity and how the company overcome this
threats?
Since this study was aimed at knowing the customer retailer’s satisfaction
dissatisfaction level and therefore it required to collect information related to quality of
services provided by PepsiCo Company as well as about its competitors.
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IMPORTANCE OF THE STUDY
The project report titled “SALES AND DISTRIBUTION special reference to
PATNA only can be of great importance to the organization.
It will help the company in following major ways
To identify their competitors and about their strength and weaknesses
To design their market strategies
In other way it can also influence decision on the requirement of the sales
and distribution & comparison between Pepsi and coca cola.
Though I have tried to do my
Project study honestly and sincerely and in case, if there is any weaknesses and
shortcomings, those are unintentional.
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OBJECTIVE OF THE STUDY
Every project is carried out with a view to attain certain predetermines objectives.
Following are the objectives of this project:-
To know the brand perception of PEPSI CO BEVERAGES.
To know the stock position of PEPSI and its competitors at different outlets
To know the reason for specific brand preference
To ascertain the satisfaction level of consumers
To ascertain the strength and weaknesses of the competitors.
To help the company in designing their market strategies
To know the grievances of retailers and distributors
To identify the products image
Find the depth and width of distribution channel adopted by Lumbini
Beverages Pvt. Ltd. Hajipur and compare them with those followed by
competitors.
To ascertain the consumer brand perception of cold drinks with respect to
price, product, quantity and advertising.
Whatever the subject taught in the class room of MBA course that is
completely theoretical. So during the training period we compare how the
marketing research (sales) activities (practical) of our organization with the
theories.
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IMPORTANCE AND RELEVANCE OF
THE STUDY
Cold drinks were started with the idea of quenching the thirst of the persons traveling. It
was also felt that reliable good water was not available everywhere. So people would
really on their packed bottle and with this idea its makers made these drinks available
mostly, at those places where water was not available i.e. on highways and long
distance trains. But slowly and slowly with its beautiful taste these become very popular
and now they are available not only in the market and street corners, but also people
have started keeping it in their house. The credit of popularizing the soft drink goes to
Coca Cola. This was the drink which is liked by all ladies, gents and children. Now
day’s soft drinks are quenching thirst looks more often; they are taken due to habits.
Gold Sport is considered as the first branded soft drinks, established 53 years ago before
all empowering Coca Cola faced competitions and its euphoric image built up in the
western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. is
regarded as the first Indian Company introducing Limca a leman drink complementary
to it this has also introduced Cola Peptones which was withdrawn in the face of tough
competition from Coca Cola. When Coca Cola bid a Farwell in 1977, Indian market was
open for various new forward publishing different brands in the markets. Parle People
introduced their Cola, Thumps Up with a mighty saying “Happy days Are here again”
as if happy days went away with Coca Cola. Pure drinks of Delhi also without lasing
much introduced pure drinks were producing and marketing Coca Cola earlier Campa
Cola with Campa orange and Campa lemon. Modern Bakeries entered the market with
Double Cola Seven, Mohan Makings with Merry & Plkup and McDowell with Thrill,
Rush and Sprint. This is Indian market where there was no competition and high voltage
advertising was on each one was trying their best to become number one company with
‘A’ class product in the field of
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Soft Drink Business. Now after a long gap government of India had given permission to
Coca Cola, which joined with Parle to do business in India. They are trying their best to
regain prestige which it had before. The much rival of Parle is Pepsi an American
concern. It started business on the Indian soil just a few years ago.
Today, it has occupied 62% shares of Soft Drinks market in India. Now Pepsi is
going all out to prove that they are the best. But now due to some factors competition
among them has become stiffen. So in this way the important activities have increased.
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LIMITATIONS OF RESEARCH
As I was asked to carry on my vocational training I found the following limitations
during my training period. So I could not collect all information regarding my topic.
1) It was not possible to understand thoroughly about the different marketing
aspects of soft drinks in a span of two months.
2) The survey was conducted in the peak season when the sale was too high by
this I cannot get the appropriate result.
3) Money –as no stipend was given, it was difficult to cover a wide area.
4) All the work was limited in Patna area, so the finding should not be
generalized .the finding of survey will be strictly based on the response of
consumer, retailer/dealers since it is difficult to ascertain the authenticity of
their statement.
5) Shortage of time factor was one of the biggest constraints.
6) Most stress was given on the primary data as it was difficult to collect
secondary data from the organization and distribution since it is difficult to
ascertain the authenticity of their statements.
7) All the observation and recommendation will be made on the feedback
obtained from survey.
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PEPSICO MISSION AND VISION
At PepsiCo, we believe being a responsible corporate citizen is not only the right thing
to do, but the right thing to do for our business.
OUR MISSION
Our mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to produce financial rewards to investors as
we provide opportunities for growth and enrichment to our employees, our business
partners and the communities in which we operate. And in everything we do, we strive
for honesty, fairness and integrity.
OUR VISION
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate - environment, social, economic - creating a better tomorrow than today."Our
vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
PepsiCo a truly sustainable company.
FUTURE PLANS
Every company will have the future plans; in the same way Pepsi Company also has its
future plans to increase its sales and the market share in the soft drinks industry. After a
long research work they will go for the new plans. Some of the future plans were given
below. In order to capture Indian food market PepsiCo India is planning to launch
indigenous food products. PepsiCo is going to make an investment of around $110
million in its beverages business in India to increase the production capacity and the
quality of the products. On future plans, the company will launch Lipton ice tea all over
the country this summer.
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The company is also seriously considering bringing some products from Quaker Oats
into the country. PepsiCo’s beverage business has also decided to invest $220 million in
the current year.
Ms. Indra Nooyi, PepsiCo’s Indian face, says the $27-billion foods and beverages giant
will invest $300m-$500 millions into its India operations over the next five years and
clearly indicated that the fast-growing snack foods business was going to be the growth
driver in the country.
Clearly, the snacks business — which has grown five-fold in the past four years — is
lifting PepsiCo’s fortunes. The CEO of Pepsi India, Ms. Nooyi says the company is
now looking at tripling this business in the next three years or so, and is even testing
Leher Kurkure for the US and UK markets. It is learnt that the total investment for the
beverage business of PepsiCo
India for the next three year will be around $350 million. PepsiCo India on Monday
announced Rs 1,000-crore investment for this calendar year that will see the food and
beverage major expanding its manufacturing capacity and supply chain, among others,
in the country. In this way Pepsi India Company is taking steps to increase their sales
and their market share in the soft drinks industry.
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HISTORY OF PEPSI
Pepsi-Cola Company founded by CALEB D. BRADHAM in 1890 at North Carolina
in USA. Its CEO is ROGER ENRICO and in India is Pepsi Co. holding its chairman
Mr. RAJIV BAKSHI. The head quarter of Pepsi- Co. in India at Guargaon. Priestly it
is operated in 196 countries. Pharmacist CALEB invented it to cure the disease
“DISPARSIA”. It is from this word that was related to Pepsi. Soon it entered the
American market as soft drink which at that time was mostly dominated by Coca-Cola,
but soon Pepsi was able to dominate the cola market & thereafter it has been no
looking back. Pepsi & Coca-Cola re engaged in ferocious cold war that has taken the
whole world by storm. Pepsi stands 51st position among the fortunate 500 companies
of the World. Its total capital is approx $3000 crore total sales annually is worth $37
crore, half of which comes from beverages and other half from division. The beverages
arm of the Pepsi Co. is Pepsi-Cola Co. and the snack food country is called Frinto-Lay-
Inc. The year 1998 is the centennial year of Pepsi. Its total profit in the year 1996-
1997 was worth Rs. 45 crore approx. The total number of employees engaged in this
business is 4.25 lakhs globally.
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HISTORY OF PEPSI IN INDIA
Soft drink PepsiCo gained entry to India in 1988 by creating a joint venture with the
Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India
Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of
foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture
in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for
having refused to release the list of its ingredients and in 1993, the ban was lifted, with
Pepsi arriving on the market shortly afterwards. These controversies are a reminder of
"India's sometimes acrimonious relationship with huge multinational companies."
Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major
targets in part because they are well-known foreign companies that draw plenty of
attention."
Soon it was giving the local contenders the run for their money in the soft drink market.
It comes out with dazzling marketing innovation that rocket the cola market line selling
the product through function, Pepsi outlets. Pepsi’s success in creating a brand almost
from scratch in India is the stuff that marketing case studies are made off. Given the
problems of doing business in markets like ours, Pepsi entered the market as an under-
dog. Its first even advantage- it entered before Coke returned was considerable reduced
by the enormous export obligations stepped on the company. Yet right from the
beginning, Pepsi demonstrated a far more focused approached. So while it entered the
market like any other MNC, it was quick to adapt, it realized that consumers,
particularly the youth, to whom it consciously reached out, would identify better with a
brand that they see as globe, yet Indian, Pepsi was built as a desi brand.
Hence its deliberate attempt to build advertises campaigns using the Popular Hinglish in
the process. Slogans like, ‘YEHI HAI RIGHT CHOICE BABY’,
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“YEH DIL MAANGE MORE –AHA” and “YEH PYASS HAI BADI” became part of
India’s popular consciousness. When Pepsi lost the bidding battle to sponsor a cricket
tournament to Coke, the loss was turned into triumph with the catch line, “NOTHING
OFFICIAL ABOUT IT”. It cashed in on the untapped consumer aspiration in smaller
towns, the hinterlands of metropolitan cities and now days the slogan which is on air is
“YE HAI YOUNGISTAAN MERI JAAN”. It showed a rare ability not only to survive,
but also grow through India’s tortuous policy twists and turns, which threw many other
MNC’s off balance. Its top management team did not suffer from the frequent changes
seen at rival. Coke consequently, it was able to unlike Coke, which paid enormous
prices to buy out established local brands, Pepsi brought its own stuff over and pushed
those aggressively with dealers, retailers and consumers. Right now, it can bark
outstanding success in building a brand that has become synonymous with soft drinks
across the length and breadth of the country. Pepsi-Cola Company was founded by
CALEB D BRADHAM in 1890 at North Carolina in USA. It’s CEO is Indira
Nooyi and in India PepsiCo. Holding its chairman is Mr.Rajiv Bakshi. The head office
of PepsiCo in India is at Gurgaon. Presently it operates in 196 countries. Pharmacist
CALEB it to cure the disease “DISPARSIA”, It is from this word that was related to
Pepsi. Soon it entered the American market as soft drink which at that time was mostly
dominated by Coca-Cola, but soon Pepsi was able to dominate the Cola market and
thereafter it has been no looking back. Pepsi and Coca-Cola are engaged in a ferocious
cold war that has taken the whole world by storm. Pepsi stands 51st position among the
fortunate 500 companies of the world. Its total capital is approx $3000crore and total
sales annually are worth $37crore, half of which comes from beverages and other half
from food division. The beverages arm of the PepsiCo. Is Pepsi-Cola company and the
snack food company is called Frinto-lay-Inc.
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RECENT DEVELOPMENTS
Recently Indra Nooyi
(PepsiCo Chairman and
CEO) has announced
that PepsiCo would
invest USD 500 million
in its India operations
over the next three years
to triple revenues over
the next five years.
These investments would
be spread into
manufacturing capacity,
market infrastructure,
environment
sustainability initiatives,
R&D, new product development, and agriculture. It was declared by Ms. Indra Nooyi
when she was addressing a press conference in Delhi.
Ms. Nooyi said that PepsiCo would also be looking at acquiring local brands or
companies. Along with Ms. Nooyi, the 26 member PepsiCo Executive Committee was
on a three day visit to India. In the current year PepsiCo’s total system investment in its
Indian beverage business will now exceed $220 million. Of this, PepsiCo India will
invest over $170 million, with its bottling partners investing the balance. This is by far
the largest investment made by PepsiCo in its beverage business since its entry
intoIndia. Mr. Sanjeev Chadha, Chairman and CEO, PepsiCo, India Region said that
PepsiCo’s beverage business momentum had steadily accelerated over the last nine
quarters.
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“They were extremely pleased with their performance in 2008. Our beverage volume
was growing around 30 per cent in that year. He added “To sustain this growth, I am
happy to report that we have decided to revise our earlier investment plans upwards, and
are now more than doubling our investments over last year”. PepsiCo is now the fastest
growing beverage business in India. These new investments will be spread across
manufacturing capacity, market infrastructure, supply chain, fruit processing,
agriculture, and R&D. This is over and above the significant capacity additions made by
PepsiCo last year. Over the next three years, capacities will be augmented in other
locations, including the setting up of new Greenfield plants. The company has already
begun scouting around for suitable locations, and will focus on states that offer the best
investment environment. PepsiCo’s strong growth has been spread across the
company’s diverse portfolio, with all categories: carbonated drinks, juices, juice-based
drinks, sports drinks, as well as water showing strong momentum. The growth has been
driven by investments in market infrastructure, innovative marketing campaigns, a
stronger distribution network. The excise reduction by the Indian government as part
of its fiscal stimulus package has played a critical role in enabling the company to
withstand cost pressures and maintain price stability of its products. PepsiCo wants its
new investments to be in place to capture the higher growth potential that it expects
India will offer. Besides the new investment which is expected to contribute 50,000 new
direct and indirect jobs to the Indian economy, PepsiCo has also announced a pilot
program in India which directly delivers against the United Nations’ Millennium
Development Goal to eradicate extreme poverty and hunger by 2015.
Addressing the same press conference, Dr. Manhood Khan Chief Scientific Officer,
PepsiCo, said, “Millions of people – here in India and elsewhere – suffer major
deficiencies of key micronutrients, like iron, Vitamin A and zinc, which lead to serious
health problems.
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We recognize that almost 50 percent of young women are iron deficient in India placing
them and their children at risk for physical and mental impairments. PepsiCo is working
toward developing nutritious fortified products to reduce micronutrient deficiencies in
select developing countries, to address the huge challenge of malnutrition among the
poor, leveraging our core competencies including R&D, product development,
marketing, sales and distribution”. The initial work would focus on reaching young
women with a nutritious product. Regarding the water balance, PepsiCo Vice Chairman,
Mike White reaffirmed that its India operations were on track to achieve a positive
water balance by 2009. This means that PepsiCo India will save and recharge more
water than it will use in its beverages plant throughout the year.
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SOFT DRINKS INDUSTRIES IN INDIA
Soft drinks are non-alcoholic beverages. It is artificially flavored and
contains no fruit juice or pulp. India with population of more than 100 crore is one of
the largest consumers market in the world after china. Soft drinks is atypical consumer
product purchased by individuals to quench thirst and secondly for refreshment.
Searching for the point of origin of Indian soft drinks I first brand soft drinks in India?
It was introduced by PARLE during later part of 40’ s Coca giant, Coca-Cola was the
first foreign soft drink to be introduced in India in 1965, Coca-Cola made a very good
dominated the whole scheme right from the world go. It (Coca-Cola) faced no
competition at that time.
This extraordinary success of soft drinks can be attributed to the following factors:-
Absence of contemporary competitive brand.
Euphoric image build up in the Western countries preceded the entry into India
Market
Indians are very found by nature of foreign goods, services etc. due to
prolonged foreign rules.
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PARLE EXPORTS PVT. LTD:-
Later in 1970 introduced Limca, Lemony Soft drinks. Before Limca introduced they
had tentatively introduced Cola, Pepino, which they had to withdraw in the face of
battering confrontation with Coca-Cola soon. Three of four groups of Indian
companies, which had the required production capacity, started their own brands of
Coca-Cola. Lemon, Orange, but failed to achieve their goal on a national basis.India
always has brotherhoods relationship with MNC’S which gave a significant
opportunities to soft drink industries in India when Coca-Cola decided to windup its
operations in 1977 rather than bowing to the Indian government insisting on :-
Dilution of equity, as the government felt that lots of foreign currency was being
wasted.
Manufacturing of the top-secret concentrate in India.
Disclose of the chemical composition of the essence.
This left a large vacuum in the popular soft drink market, and a vista
was opened to any company with the requisite, technical, marketing and organizational
skills. The existence of Coca-Cola from India in 1977 accelerated the growth of several
Indian soft drinks. New soft drink in the form of tetra pack enters the market among
Frooti, Jump-In, and Tree-top Ire the prominent once. Till 1977 their equipment
bottling plants and the distribution network a longing to be of no use. It took them one
year to develop one year to develop new formula to survive and gradually came up
with Campa, Lemon, Orange and Cola that order. However Parle, the pioneer in the
soft drinks, blazed its way to national prominence with their product “Thumps-up”,
bearing the slogan “Happy Days Are Here Again”. This particular slogan helped to
win over the loyalists or addicts to Coca-Cola. Soon the Indian soft drinks industries
started at a phenomenal rate, and all Parle products Gold-Spot, Limca and Thumps-up
became leader in their own segment.
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In spite of all the drinks market still has large gap as claim by soft drink manufacturers.
To fill these gaps there are many soft drinks concentrated and squashes flooded the
market. The Indian soft market basically offered three flavors i.e. Orange, Lemon, &
Cola. The year 1988 was the coming of the multinational company, Pepsi entering the
Indian market elevens years after the existence of Cola-Coca. It had name, fame and
edge of being one of the best in the game and it also offered stiff competition to Parle
& Coke. Now Pepsi is going all out to prove that they are the best.
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PEPSI- THE INDIAN EXPERIENCE
Previously there were two ad tags “Yehi Hai right Choice Baby” & “Nothing official
About It”, which immediately ring a bell-it’s to be a Pepsi. But today this has been
changed and it’s “Yeh Dil Mange More.”Pepsi started its operation in India in 1988 in
Kanpur and since pepsi Co. has set up a fully integrate operation India viz.
Manufacturing, Research & Development, Marketing distribution and franchising –
Covering fruit/vegetable processing, export, snack foods and beverages. In 1993 Pepsi
Co. set up a hold company to further accelerate growth through new development of
technology and accelerating exports and employment. It has 500crore in India to
develop the local market of Pepsi has distributed exclusive franchises in India to bottle
its total product. There are 34 bottling plants of Pepsi in India. Pepsi directly controls
some and rests are under various franchises.
Some special features in India scenario:-
1. BEVERAGES :-
Pepsi has set up a concentrate plant in 1989 at Chan no, District
Sangrur, Punjab, With an investment of55 million the state of the art Plant houses a
world class laboratory where soft drinks from all over the world are tested. This
The soft drink being a FMCG product has a wider and scattered market. Thus to
enable concentrated effort of marketing activities in different scattered market, the
entire market is broken down into the following segments.
Route Market
Home Market
At Work Market
ROUTE MARKET:-
Outlets in this market cater to those people who are engaged in shopping, eating, outgoing to and from work, in amusement enters etc.
HOME MARKET:-
Outlets in this market cater to people buying prominently for home consumption either by case loose bottles.
AT WORK MARKET:-
Outlets in this market cater to people working in office, factories etc., An attempt is always made to make soft drinks readily and conveniently available all day long while people are actively working.
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THEORITICAL PERSPECTIVE
RESPONSIBILITY:-
Its responsibility is to continuously improve all aspects of the world in which we
operate in – creating a better tomorrow for future generations.
Environment Sustainability:-Environment Sustainability is based on PepsiCo’s commitment to be responsible
stewards of our planet’s resources. We are reducing water usage through conservation,
reuse, and replenishment and we work with local communities to provide access to
clean water.
Sustainability:-It’s Everybody’s Business
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Sustainability Vision:-
PepsiCo’s responsibility is to continually improve all aspects of the world in which we
operate - environment, social, economic - creating a better tomorrow than today.
Tomorrow Today
CSR – India:-
PepsiCo India continues to build on its strong foundation of achievements on the
Purpose or CSR agenda and scale up its initiatives while focusing on the following 3
critical areas in Environment Sustainability that are linked to its business and where it
can have the most impact.
Replenishing Water:-
PepsiCo is committed to conserving and recharging resources in the environment and
recognizes that corporations can play a key role in using scarce resources such as water
with care and responsibility
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Waste to Wealth –PepsiCo India’s unique Waste to Wealth initiatives to convert bio-
degradable waste into high quality organic manure and recyclable waste is recycled.
Partnership with Farmers:-
PepsiCo India continues to strengthen its partnerships with Farmers across the country to boost their productivity and income.
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Corporate Social Responsibility – India:-
Performance with Purpose articulates PepsiCo India’s belief that its businesses are
intrinsically connected to the community and world that surrounds it.
Replenishing Water:-
In 2009, through our various initiatives of replenishing water we were able to give back
to the community more than consumed in our manufacturing processes.
Waste to Wealth:-
PepsiCo India’s unique Waste to Wealth initiatives to convert bio-degradable waste into
high quality organic manure and recyclable waste is recycled.
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Partnership with Farmers:-
PepsiCo India continues to strengthen its partnerships with Farmers across the country
to boost their productivity and income.
Healthy Kids:-
PepsiCo’s ‘Get Active’ a Good nutrition and Active Lifestyle Program for Children has
seen robust growth and implementation PepsiCo India stays committed to the health and
well-being.
Partners in CSR:-
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PepsiCo partners who have been associated with various CSR initiatives
Community Voices:-
Our partners and beneficiaries talk about how various PepsiCo’s CSR initiatives
changed their lives.
Other Community Initiatives:-
PepsiCo India has been involved in series of initiatives towards the Community
development and supporting the local population.
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COMPETITOR COCA-COLA REASON
FOR DOMINATING COCA-COLA
The Coca-Cola Company has historically been considered PepsiCo’s primary
competitor in the beverage market, and in December 2005, PepsiCo surpassed The
Coca-Cola Company in market value for the first time in 112 years since both
companies began to compete. In 2009, the Coca-Cola Company held a higher market
share in carbonated soft drink sales within the U.S. In the same year, PepsiCo
maintained a higher share of the U.S. refreshment beverage market, however, reflecting
the differences in product lines between the two companies. As a result of mergers,
acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business
has shifted to include a broader product base, including foods, snacks and beverages.
The majority of PepsiCo's revenues no longer come from the production and sale of
carbonated soft drinks. Beverages accounted for less than 50 per cent of its total revenue
in 2009. In the same year, slightly more than 60 per cent of PepsiCo's beverage sales
came from its primary non-carbonated brands, namely Gatorade and Tropicana.
Two primary reasons contributed to domination of Coca Cola in the international
market, with one as mentioned above was the strategy Coca-Cola used when investing
in a foreign market. Coca-Cola entered foreign markets differently than Pepsi, providing
it an edge over Pepsi. While Pepsi invested heavily in foreign markets, Coca-Cola’s
appointed bottlers with significant experience easily neutralized any threat PepsiCo
could pose. The second reason Coca-Cola holds such a dominant position in world
market is due to World War II. During World War II, Coca-Cola offered American
servicemen its product for 5 Cents, wherever they were and whatever the costs the
company would incur. The company would establish bottling plants (subsidized by US
government), and send its product overseas wherever US troops went. With its
inexpensive price, and widespread popularity among servicemen, coupled with the
eventual victory of US in Europe and Asia, the product was widely adopted throughout
Europe and Asia. Due to familiarity of the product, Coca-Cola still retains a dominant
position throughout Europe and Asia.
COMPETITOR COCA-COLA
Quick and prompt to their service.
This company is more dominant and securing a positive image in the market.
Regular to their service.
More chillers are made available in comparison to Pepsi.
Scheme is properly conveyed to shopkeepers.
Close watch on current market trends.
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PROMOTIONAL ACTIVITIESPromotional activities play a greater and important role in the marketing effort carried out by PEPSI Co. It is for more create and maintain an image of its products.
PROMOTIONAL ACTIVITIES CARRIED OUT BY "LUMBINI BEVERAGES PVT. LTD"
L.B.P.L. carries out its promotional activities as a controlled and integrated program of communication and material design to present its soft drink to the prospective customer.
The Tools used by “Lumbini Beverage Pvt. Ltd.” For fulfilling the various purposes of its
(i) Point of purchase :
A sensible man does not has to go for too find out whatever a common pan wala knows that People buy with their eyes. Every item of sale in a shop is displayed in front where people can see it at the first sight. It is the same with all the shops vendors in towns either selling Consumer goods or selling soft drinks. Rather in selling a product like PEPSI display is more help it is an essential element because soft drink is bought a impulse on the spur of the movement. Thus the product is tested when it is brought at people's attention.
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(ii) Special event market:-
The dealer at special event sport places the banners and stall of Pepsi's products. Like picnic, Cricket match, social activities are also used to cater the people. It helps in promoting the sale as well as in creating an image of products.
(iii) Media planning :-
A very important part of advertising is to decide the medium of advertising and how much to spend in each media:
Newspaper
Radio
Television
Hoarding
Product of sales materials (paintings, glow signs D. Board)
Advertising is one of the important factors which all put together results sales. It has to be backed by the distribution network, effective servicing, dealer, goodwill and so on. Thus advertising has to be very carefully woven with the entire demands of marketing.
PROMOTIONAL ACTIVITIES CARRIED IN PATNA
Point of purchase (POP)
Special events (fair show, Road show etc.)
Hoarding
By newspaper, TV, radio etc.
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MERCHANDISING POLICYIn 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
able to penetrate and get embedded into the perpetual space of the consumer’s mind. The concerned
product should induce to the consumers. Pepsi believes that “Jo Dikhta Hai Wahi Bikta Hai” i.e any
product which is visible is bound to be sold.
METHODS OF MERCHANDISING:-
Visi-cooler placement
Glow sign board
Paintings
Crate stacking
Umbrella
Display
Special Schemes
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ADVERTISING STRATEGY OF THE COMPANY
The main motive behind the purpose of advertising of the Pepsi Co. is to
maintain the brand loyalty though recalling the memory of the users of soft drinks as to
attract the potential consumers who consume a soft drink. On the national basis the
media extensively used are: Newspaper, short advertising films, Radio, T.V etc.
Besides the advertising being carried out by Pepsi Co. Lumbini Beverages
Pvt. Ltd., Hajipur also carries out its own promotional programme of which
advertisement is an important aspect. The Lumbini Beverages Pvt. Ltd. is free to use
any media, messages, copy etc. as and when required by them but single factor which
remains the same as used for each Pepsi Co's bottling company on national level. The
main slogan being used by PEPSI Co. bottle all over India for its Cola Products has
been "The choice of new Generation". The main Model in the advertising is the Best
Cricketer - MS.Dhoni, Best Actors – Amitabh Bachhan, Shahrukh Khan, and Best
Actress – Karenna Kapoor, Pretty Zinta, and Deepika Padukone.
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YEAR WISE ADVERTISING OF PEPSI SINCE 1990
After entering in India PEPSI started their advertising in planned way to
full fill the objectives expressed by Vibha Rishi, Executive Vice
President, Marketing Pepsi India “Believe in advertising that leaves a smile
on your face "
IN 1990:-
The first commercial came on screen with actress Juhi Chawala and
Pop singer Remo. The theme was "Feel the music". "Are you Ready for the
Magic?". Went in the jingle and this ad ends with opening of Pepsi bottle.
IN 1992:-
The famous and unforgettable Punch line "Yehi Hai Right Choice Baby .... Aha!" was introduced with Remo and twelve year's old Penny vaz.
IN 1993:-
This time also Amir Khan, Aishwarya & Sanjana have done
the commercial on the theme "Can I have Another Pepsi. "
IN 1995:-
In this commercial when Akshay Kumar is given another soft
drink, then the kid in the audience shouts "Hai Akshay Pepsi" and he
gets back his magic. And this aid also ends with the same punch line.
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IN 1996:-
Here, the commercial shows the enthusiasm of Shahrukh to get Pepsi
for his friend. He dodges the dog and with this he tries to show that Pepsi is
the active choice to get for which the customer can do anything, and it is also
revealed by the line "Pepsi to Mai Pee Ke Rahunga".
IN 1997:-
In this year Pepsi celebrated the 50 years of
Indian Independence by the slogan “ Azadi Dil Ki”
with Sharukh and Azhar.
IN 1998:-
In this year Pepsi has again involve many
cricket stars for commercial with slogans “More
Cricket More Pepsi “, “Got a keep a cool ahead”,
“Generation
Next “. Beside this it has flashed many commercials
with Leander Paes and Mahesh Bhupati for Mirinda
(Orange). Mirinda for Mirinda (lemon) the commerce aid
done by the Bollywood star Amitabh Bachan gave tremendous real "Jhatka" to
competitor with help of punch line Jor ka Jhatka Dhere Se Lage" which is
ruling heart “Jhatka” throbbing of millions. Apart from all these commercial
Pepsi has sponsored many Sharjah Cup at Sarjah.
Pepsi Independence Cup in India.
Yanni Concert in Agra.
Asia Cup in Srilanka.
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In 1999:-
Worlds Cup ’99 was sponsored by Pepsi Co.
the aid featured Shahrukh Khan and Sachin
Tendulkar and the Punch line “Yeh Dil Mangay
More” became very famous.
In 2000:-
Aid featuring Shahrukh Khan
with Punch line “Yeh……more”.
In 2003:-
Aid featuring Fardeen Khan, Saif Ali Khan, Kareena Kapoor, Preeti
Zinta with the Punch line “Mausam Garam ‘Hai Pepsi Ke Liye Hum Beshram
Hai”
In 2004:-
The Yojana "Toss ka ho s" has been. Sponsored by Pepsi for
"ICC Championship Trophy in England in September. The winner of this Yojana
would get the opportunity to watch the toss with Saurav Group on the pitch.
After the collection of hundred coupons of "Toss ka boss"
In 2005 :- This time the commercial advertisements has been done by