SMV Beverages Pvt. Ltd. Jamshedpur Submitted By: Nawaz Alli Khan Regd No: 1561301026 Session: 2015-17 Submitted in partial fulfillment of the requirement for the degree of MASTER IN BUSINESS ADMINISTRATION Under the guidance of MR. Deepak Agarwal Dr. Duryodhan Jena TDM, SMV Beverages, Jamshedpur Associate Professor (Corporate Guide) Institute Of Business & Computer Studies
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SMV Beverages Pvt. Ltd. Jamshedpur
Submitted By:
Nawaz Alli Khan
Regd No: 1561301026
Session: 2015-17
Submitted in partial fulfillment of the requirement for the degree of
MASTER IN BUSINESS ADMINISTRATION
Under the guidance of
MR. Deepak Agarwal Dr. Duryodhan Jena
TDM, SMV Beverages, Jamshedpur Associate Professor
(Corporate Guide) Institute Of
Business & Computer Studies
Guide Certificate
Certified that this report entitled “A STUDY ON DISTRIBUTUION CHANNEL AND PROMOTIONAL ACTIVITY of
PEPSICO” at SMV BEVERAGES LTD. JAMSHEDPUR submitted in partial fulfillment for the Degree of Master In
Business Administration is a record of independent research work carried out by Nawaz Alli Khan under my
guidance and no part of this Corporate Exposure Training has been previously submitted earlier for the award
of any degree.
Place: Bhubneswar
Date: Mr. Deepak Agarwal
(TDM)
Prof. ……………………….
Professor/ Asst. Professor / Lecturer
IBCS, SOA University
Certificate This is to certify that Mr. Nawaz Alli Khan, having Regd No 1561301026 has done this research project
work on “A STUDY ON DISTRIBUTUION CHANNEL AND PROMOTIONAL ACTIVITY of PEPSICO” and submitted
the report in partial fulfillment for the degree of Master of Business Administration to IBCS, SOA University,
Bhubaneswar under my supervision and guidance.
His / her report is the record of original work done by him / her. To the best of my knowledge, no part
of the content of this report has been submitted for any degree by him / her or anybody else to any other
University or Institution.
Place: Bhubneswar
Date: Project Guide
Student Declaration
I, Nawaz Alli Khan hereby declare that this Summer Internship Project Report entitled “A STUDY ON
DISTRIBUTUION CHANNEL AND PROMOTIONAL ACTIVITY of PEPSICO” at SMV BEVERAGES LTD.
JAMSHEDPUR is the result of my own efforts which I have undergone as a part of the curriculum in MASTER
IN BUSINESS ADMINISTRATION from INSTITUTE OF BUSINESS & COMPUTER STUDIES, SOA University
Bhubaneswar. It is an original work done by me under the guidance of my external guide Mr. Deepak
Agarwal, INTERNAL TRAINER (SMV BEVERAGES LTD. JAMSHEDPUR). All information provided in this report is
genuine.
Place: Bhubneswar
Date: Nawaz Alli Khan
Acknowledgement
I express my appreciation and thanks to all those with whom I have had the opportunity to work with and
whose thoughts & insights have helped me in furthering my knowledge and understanding of the subject.
Every page of this report reminds me about the moral support and guidance that was bestowed upon me by
my esteemed Guide, professors, friends and family members throughout the duration of the project.
I take this opportunity to express my gratitude to Mr. P. S. Kumar (Director), Miss Mukti Rani (Human
Resource manager), K.K Thakur (H.O.S.) of S.M.V. Beverages, Jamshedpur who have given me the opportunity
to do the project in their esteemed organization.
My sincere gratitude goes to my Internal Project Guide Dr. Duryodhan Jena and my external Project guide
Mr. Deepak Agarwal TERRITORY DEVELOPMENT MANAGER, SMV Beverages ltd (PEPSICO) without his valued
guidance, encouragement, and inspiration the completion of this project would have never been possible.
I also owe my regards to Mr. Roshan Singh (C.E.), Mr. Dhannajay Yadav (A.D.S.) for their co-operation in the
successful completion of the project.
This has been one long project and naturally many people get associated with it. Any bouquet for the merit in
this book should go to their door. I would like to thanks the staffs and officials of S.M.V. Beverages for their
co-operation in providing us with all the information, which were required by us.
Abstract of the Report
In this report SMV Beverages, Jamshedpur gives me a problem to make a research on it that their
distribution and promotional strategy was not working properly. Because from last 2 years their
improvement regarding market share was 3.5% against Coca-Cola’s products. Another problem that emerged
new outlets doesn’t like to sell PEPSICO’s product which is the main reason, because it help the competitors
to increase their sales.
As I have appointed to do a research in my own locality in Mango, Jamshedpur to find out the reasons
behind the problem, as the locality has a major chunk of outlets; it generates big profits from the area. Firstly
I had fixed 2 zones that were to do survey in Rural and Town area. I had done Personal Interviews and
Questionnaires to get the information. I have faced so many problems like; Owners of the outlets are very
rude because of PepsiCo’s service. As I found out those outlets don’t get product in time and the repairing
service of PepsiCo.
In The End I finally meet my objectives and find out that the problem only can be resolved by, that one extra
number of distributor is needed in my locality and the number of employees regarding Repair of the Freezes
and Promotion is needed as the problem with the fridge repair service was that a few number of people was
appointed in the locality. Who were unable to handle all the problems at once.
TABLE OF CONTENT
Sl. No. Chapter No. Contents Page No
1 Chapter 01 Introduction 1-7
1.1 The Prollogue 2-3 1.2 Relevance of the Study 4 1.3 Research Problem 4 1.4 Objectives Of The Study 5 1.5 Methods Of The Study 5-6 1.6 Scope & Limitation 7
2 Chapter 02 Literature Review 9
2.1 Review Of Literature 9
3 Chapter 03 Company & Product Profile 10-32
3.1 Beverage Industry Scenario 11 3.2 Company Profile 12-26 3.3 Pepsico’s Product 27-32
4 Chapter 04 Data Analysis & Interpretation 33-60
4.1 Analysis & Interpetation Of Data (Town) 34-46 4.2 Analysis & Interpetation Of Data (Rural)
47-60
Chapter 05 Summary And Conclusion 61-63
5.1 Findings 62 5.2 Recommedation 63
5 Annexure 64-68
Bibliography 65 Questionnaire 66-68
Chapter 1
INTRODUCTION
1.1 The Prologue
Distribution channel is the chain of businesses or intermediaries through which a goods or services passes until it reaches the end
consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet.
Channel are broken into direct and indirect forms
Direct channel - Allowing the consumer to buy the good from the manufactures.
Indirect channel - Allowing the consumer to buy the goods and services from a wholesaler.
Direct channels are considered “shorter” than “indirect” ones.
Distribution Channel
Distribution Channel is a very important component of Logistic & Supply Chain management. Distribution in Supply Chain
management refers to the distribution of a good from one business to another.
Distribution Channel
Direct Indirect
Factory
Distribution Channel defines as a chain of intermediaries, each passing the product down the chain to the next organization, before
it finally reached the consumers or end-users. This process is known as the “Distribution Chain” or the “Distribution Channel”. Each
of the elements in these chains will have their own specific needs, which the producers must take into account, along with th ose of
all important end-users.
Channels
Distribution, who sells to retailers.
Retailer (also called dealer or reseller), who sells to end consumers.
Distribution channels may not be restricted to physical products Alice from producers to consumers in certain sectors, since both
Direct and Indirect
Channels may be used. Hotels, for examples, may sell their services directly or through travel agents, tour operator, airlines, touris t
boards, centralized reservation system, etc. process of transfer the products or services form product to consumer or End -Users.
There has also been some innovation in the distribution of services. For examples, there has been an increase in Franchising and in
Rental Services
The latter offering anytime from television through tools. There has also been some evidence of servic es integration, with services
linking together, particularly in the travel and tourism sector. For example, Links now exist between airlines, hotels and car rental
services. In Addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and
building society offers are crowding out traditional grocers from major shopping areas.
Market Factors
An important market factor is “Buyer Behavior”, how do buyers want to purchase the product? Do they prefer to buy from
retailers, locally, via mail order or perhaps over the Internet? Another important factor is Buyer Needs for product information,
installation and servicing. Which channels are best served to provide the consumers with the information they need before buying?
Does the products need specific technical assistance either to install or service a product? Intermediaries are often best pl aced to
provide servicing rather than the original producer.
Retailer
Supplier
Customers
The willingness of channels intermediaries to market products is also a factor. Retailers in particular invest heavily in pro perties,
shop fitting etc. they may decide not to support a particular product it requires too much investment (e.g. Training , Display
Equipment, Warehousing).
Another Important factor is intermediary cost. Intermediaries typically charge a “mark up” or “commission” for participating in the
channel. This might be deemed unacceptably high for the producers business.
Producers Factors
A key question is whether the producer has the resources to perform of the channel? For example producers may not have the
resources to recruit, train and equip a sales team. If so, the only option may be to use agents and/or other distributors.
Another factor is the extent to which producers want to maintain control over how, to whom and at what price a product is sold. If
a manufacturer sells via a retailer, they effective lose controls over the final consumer price, since the retailer sets the price and
any relevant discount or promotional offers. Similarly, there is no guarantee for a producer that their product are actually been
stocked by the retailer. Direct distribution gives a producer much more control over these issues.
1.2 Relevance Of The Study
Relevance of the study for PEPSI, by this study, the company will come to know:-
Through this study company can know about its growth.
This study will also help to the company to know about their new concepts position in the market.
This study will also help to the company to know about its promotional activities.
Through this study company will know about the availability of its products in the market.
1.3 Research Problem
The Problem in the area of Mango, Jamshedpur is that, Retailers don’t order more stocks and the Sales are also go down for a
while. And also new shops don’t l ike to buy our product at all, so to know the reason behind it I do a survey on it.
TITLE OF THE STUDY
“A STUDY NO DISTRIBUTION CHANNEL AND PERMOTIONAL ACTIVITY OF PEPSICO”
NEED OF THE STUDY
The study was mainly conducted to identify distribution channel and promotional activity of PepsiCo SMV Beverages Jamshedpur.
STATEMENT OF THE PROBLEM
The study was conducted to know the problems faced by the retailer and distributers and their perception towards the company
and the customer’s perception towards the PepsiCo.
RESEARCH QUESTIONS
Why the sales OF SMV Beverages, Jamshedpur are going down?
Why Retailers Don’t Order More quantity?
Why The Growth rate is lower than competitors Growth rate?
STUDY DESIGN “A study design is the arrangement of the condition for the collection and analysis if data in a manner which helps the purpo se of
the study”. As the study was made on the distribution channel of PepsiCo and such document being considered confidential, the
questionnaire methods of surveying the distributor was separate questionnaire was prepared for the customers and retailers. Each
question has 2-5 options, giving sufficient options to the respondents. On the bas es of the answer to those questions, the finding
and analysed.
1.4 Objectives Of The Study
How strong relationship PepsiCo has with the distribution and retailer.
To know the Promotional activity of PepsiCo.
Perception of retailer towards the distribution channel (City & Rural) of the PepsiCo.
To collect data about the retailers that can be used for activating new channels and merchandising opportunities.
To find out ways to increase the sales of the new launches in different places.
1.5 Methods Of The Study
“Marketing Research is the systematic designing, collection, analysis, and reporting of data and finding relevant to a specific
marketing situation facing the company.”
The present study of Soft drinks markets in all over Patna is based on survey methods. In survey methods, there are two
types of survey. One is Census Method and another is Sampling Method. In this sample survey methods I have taken only a small
part of the whole and data collected from the small part are made applicable to the whole i.e. I have taken Jamshedpur and Rural
area of Mango, Bistupur, Puralia Road, Aditpur, Saraikela, Chandil etc.
Within the time limit, I tried my best to select the sample representative of the whole group. During my training, I
maintained different chart for different routes during my dealer survey. I have collected data from the distributor and retailer of
Jamshedpur and Rural area.
Data Sources
Primary data collection involved distributors, retailers and consumers
Research Approaches : Survey
Research Instrument : Interview Schedule
Sampling Plan
Sampling Unit : Distributors & Retailers
Sampling size : 160 (town), 0140 (rural)
Contact Method : Personal Interview
In interview schedule I used multiple choice questi ons.
SOURCES OF DATA COLLECTION
The data has been collected from both primary and secondary methods have been used.
Primary data- it was collected by surveying to the retailers.
Secondary data- it was collected from,
General l ibrary research sources l ike marketing book.
Advertisement journals l ike magazines and newspaper.
Internet: PepsiCo website, Wikipedia.
Structured Questionnaire:
Structured questionnaire is a printed list of questions to be filled by the respondents. The structured questions are being made as
short as possible and simple to understand to the people from both Rural and Town area . The questionnaire is designed such that it
helps to elicit the accurate information.
TOOLS AND TECHNIQUES
The first-hand information was collected by interviewing the distributor regarding the Strategies followed by the company for
distribution channel. A questionnaire was formulated and circulated to the retailers and customers. Hence the survey method is the
tool used here for the data collection.
SAMPLING DESIGN
Sample unit: Distribution of PepsiCo, Retailer and Customers.
Sample size: 300 respondents.
Sampling methods: List Of retailers Given By Company
Place of study: Mango, Bistupur, Puralia Road, Aditpur, Saraikela Jamshedpur.
PLAN OF ANALYSIS
The questionnaire was tabulated using tally methods. The tabulated data was analyzed and inferences were drawn. The tabulated
data has been depicted in the form of a graph. The promoters of different brands there were not taken for sample size.
LIMITATION OF THE STUDY
Biased- The study was purely based on the information provided by the respondents and they may be biased.
Time Constraint- The study was conducted in a short period of time and detailed study was not possible.
Cost Constraint- The area of study is Jamshedpur
Sample Constraint- The sample size was not large enough as planned, as the time factor was the key limitation in the study.
Confidential Constraint- Due to confidential constraint certain information, not all details could be obtained.
1.6 Scope & Limitation
SCOPE OF THE STUDY
The training in the organization is very important for a student who is undergoing with such course. This course is not the answer
for all the problems, which arises in the practical fields. There is no certain formula for any particular problems, but the aim of this
study is to develop the ability of decision-making. A right decision at right time itself helps an organization to run smoothly.
This training in an organization gives an idea how decisions are taken tact fully when any problem comes to an executive. So the
way of problem solving, right decisions making and knowledge of different type of marketing activities give much importan ce to the
study. Though only in two months it was not possible to understand it so deeply but an overall idea could develop.
LIMITATIONS:
Every work has some limitations and in this l imitation we have to do a wok as summer project is a time bound process so in which I
found various l imitation which are as follows:
Retailer ’s mindset about the survey was also an obstacle in acquiring complete information and positive interaction.
Time and Money is also one of the important l imitations.
The sample has taken only 100 respondents. They may not represent the whole population.
CHAPTER 02
LITERATURE
REVIEW
2.1 Review Of Literature
PepsiCo is one of the oldest, largest and 17most successful Beverage and snack companies in the world. PepsiCo was founded by
Caleb Bradham in 1902 in USA. Today PepsiCo and its affiliates operate in more than 140 countries in the world and generate
revenue in excess of $40 Billion. In its pursuit of never ending growth and expansion, PepsiCo entered India in 1989 in a joint
venture with Punjab Government. However, PepsiCo India very soon started its beverages operations in collaboration with the R.K.
Jaipuria Group . Soon after entering the beverages segment PepsiCo estimated its dominance in the market owing to its expertise in
sales, marketing, operation and local collaboration.
PepsiCo maintained its market dominance for many years to come. However, this advantage slipped and PepsiCo had to conced e
the market leadership to Coca Cola India. Several actors and Sport person were responsible for this development. But the most
important are; Distribution channel is having an important role in positioning of the product because we know that distributi on
channel is tool by which we can make reach our product to the final consumer discontinuation of slums in the distribution net work
by PepsiCo. This move by PepsiCo adversely affected its position of a market leader because while PepsiCo discontinued the us e of
Slums in its distribution network Coke continued it and within one year, it was able to snatch considerable market share from
PepsiCo. Acquisition of well -established and favored brand like Thumps Up and Limca by Coc a Cola India.
These two brands stil l constitute a bulk of sales for Coca Cola India. To explore the reasons behind these development this study will
analyze the marketing initiatives and policies of PepsiCo India in detail with particular focus on its partner relationship management.
The data collected for laid the foundation for the study and gave a platform for the analysis and findings which lead to the
fulfillment of the objectives. The data collected for research is primary and secondary. Primary data is collected by observa tion,
interviews and questionnaires. The data collection and primary paves way for the recommendation and conclusion of the study that
reveals some important findings regarding the strategy and corporate structure and strategy of PepsiCo India.
Chapter 03
COMPANY
&
PRODUCT PROFILE
3.1 Beverage Industry Scenario
Liquid Food and beverage processing in India has been a rising star in recent years. More and more is being consumed, and the quality of the products is ever higher. India is widely recognized as a promising market for the liquid food and beverage industry.
Impressive data on the rapidly growing economic strength of India and the
performance of its food and beverages industry (Source: VDMA):
It is one of the most rapidly growing economies in the world.
It is one of the largest beverage markets worldwide (by volume) for alcoholic beverages and soft drinks.
Per capital consumption is still very low but is rapidly increasing (alcoholic drinks: +28%, soft drinks: +100 %)
It is the number one market for milk and dairy products and stil l growing.
Because of its rich resources, India is already a leading exporter for several food products.
The global deal between Coca-Cola and P&G to form a snacks and beverages joint venture company was reported to have slipped
into rough weather. The P&G brand of potato wafer, Pringles, seemed to be faced with distribution problems in India. P&G had globally tied up with Coca-Cola to form a stand-alone juice and snacks company. The new firm is focused on developing and marketing new juices, juice based beverages and snacks on a global basis. The Sharjah-based Allied Beverages was pushing its Ahlan
brand in India, having entered the market in mid-2000. Its target was carbonated drinks market in PET bottles . Its plans were to launch a PET bottle in the popular 300 ml category. Ahlan expected to gain a 12% share of the total PET bottle market in nort hern India. Of the total market, PET bottle segment is approximately 12%. Presently, All ied Beverages has a manufacturing unit at Dharuhera in Haryana. The product range includes carbonated drinks - cola, orange, lemon and soda in three pack sizes - 500 ml,
1500 ml and 2000 ml. All ied Beverages sells non-carbonated drinks in 200 ml food grade cups priced at Rs 7 in its portfolio, available in four different flavors. The company's future plans include pulp-based fruit drinks in flavors, which will be available in 200 ml non-returnable glass bottles.
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes in favor of Coco-Cola India, following the global takeover of Schweppes beverages by Coke. The company stil l retains the bottling rights for the beverages.
It was noticed for the first time during the summer of 2004 that soft drink companies were registering a slower growth in the sale of bottled water at 20% compared to 35% in case of drinks.
3.2 Company Profile
Barbara Murray explained the soft drink industry by stating, “For years the story in the non -alcoholic sector cantered on the power
between Coke and Pepsi. But as the pop topped out, the industry’s giants have begun relying on now products flavors and looki ng
to noncarbonated beverages for growth”. In order to fully understand the soft drink industry, the following should b e considered
the dominant economic factors, five competitive sources, industry’s key factors. Based on the analyses of the industry, speci fic
recommendation for competitors can then be created.
Soft Drink Industry
The Soft drink industry, the Production, marketing and distribution of non-alcoholic, carbonated, flavored, sweetened and water
based beverages.
The history of soft drink in the United States illustrates important business innovations, such as product development, franc hising
and mass marketing, as well as the evolution of consumer tasted and cultural trends. Many Europeans long believed natural
Non-alcoholic
Carbonated Flavored
Sweetened Water Based Beverages
Production
Marketing
Distribution
mineral waters held medicinal qualities and favored them as alternatives to often-polluted common drinking water. By 1772, British
chemist Joseph Priestly invented a means to synthetically carbonate water, and the commercial manufacturing of artificial min eral
water began with Jacob Schweppes’s businesses in Geneva in the 1780 and London in the 1790s. The first known U.S. manufacture r
of soda water, as it was known, was Yale University chemist Benjamin Silliman in 1807, though Joseph Hawkins of Baltimore
secured the first U.S. patent for the equipment to produce the drink two year later. By the 1820s, pharmacies nationwide provided
the beverage as a remedy for various ailments, especially digestive.
Though the drinks would continue to be sold in part of their therapeutic value, customers increasingly consumed them for
Refreshment, especially after the 1830s, when sugar and flavorings were first added. Soda fountains emerged as regular features of
drugstores by the 1860s and served beverages flavored with ginger, vanilla, fruits, roots and herbs . In 1874 a Philadelphia store
combined two popular products to make the first known ice-cream soda. The first cola drink appeared in 1881.
In the late 1800s, several brands emerged that were still popular a century later. Pharmacists experimenting at local soda fountains
invested Hires Root Bear in Philadelphia in 1876, Dr. Pepper in Waco, Taxes, in 1885, Coca Cola in Atlanta, Georgia in 1886, and
Pepsi-Cola in New Bern, North Carolina, in 1893 among other. Reflecting two of the middle-class mores of period temperance and
feeling overwhelmed by the pace and burdens of modern life, early marketing touted these drinks as alternatives to alcohol an d as
stimulants. Coca-Cola inventor John S. Pemberton’s first advertisement for his creation read “Delicious! Refreshing! Exhilarating!
Invigorating!”, as Asa Candler, the eventual founder of the Coca -Cola Company, promoted his products in the years leading up to
Prohibition as “The Great National Temperance Beverage.”
The history of Coca-Cola reveals how national markets in soft-drink brands development. To limit the cost of transportation,
manufactures of syrup concentrates licensed bottlers to mix the product, package and distribute it within a specific territor y.
Candler underestimated the importance of the bottling side of the business and in 1899 sold the national right to bottle Coke for
the fairly small sum to Benjamin F. Thomas and Joseph B. Whitehead, who then started a national network of bottles, creating the
basic franchising format by which the industry is still run. Candler and his successor after 1923, Robert Woodruff, were aggressive
and innovative in marketing Coke as a leading consumer product and cultural icon. Coupons for free samples and giveaways of i tem
bearing the drink’s name and logo publicized the beverage and pioneering efforts in market research helped define how best to
take advantage of advertising and promotions.
During World War II, Woodruff opened bottling operation overseas to supply U.S. Military persons, and after the War Coke was
poised to enter these international markets, not only as a consumer product, but also as a symbol of “The American Century”.
After World War II, the soft drink industry became a leader in television advertisement, the use o f celebrity endorsement, catchy
slogans, tie-ins with Hollywood movies and other forms of mass marketing, particularly focusing on young consumers and
emphasizing youth-oriented themes. As health and fitness consciousness and environmental awareness became popular, the
industry responded with sugar free and low-calorie diet sodas, beginning in the 1960s and later caffeine-free colas and recyclable
containers.
The most fa mous rivalry within the industry has been between Coke and Pepsi, which waged two round s of “Cola Wars” in the
twentieth c entury. In the 1930s and 1940s, Pepsi challenged the industry leader by offering a twelve-ounce bottle for same five-
cent price as Coke’s standard six ounces. In the 1970s and 1980s, “Pepsi challenge” taste-tests led Coke to change its formula in
1985, a campaign that failed because it underestimated the attachment Cole drinkers had the traditional and symbolism of the
brand.
In 2001, the soft drink industry included approximately five hundred U.S. bottlers with more than 285,000 employees, and its
achieved retail sales of more than $61 Billon. Americans that year consumed an average of 55 gallons of soft drink per person , up
from 48 in 1990 and 34 in 1980.
The 9 leading companies accounted for 96.5% of industry sales, led by Coca-Cola with more than 43% of the soft drink market and
Pepsi with 31%. 7 individual brands accounted for almost two-thirds of all sales. Coca-Cola Classic, Pepsi-Cola, Diet Coke, Mountain
Dew (Pepsi Product), Sprite (Coca-Cola Product), Dr. Pepper and Diet Pepsi. Domestic sales growth slowed in the late 1990s,
because of increased competition from soft drinks, Iced Teas, Juices, Sport Drinks and bottled water. The industry continue,
however, to tap lucrative international markets, Coke and Pepsi each have bottling operation in more than 120 countries.
Type: Public
Traded as: NYSE:PEP
Industry: Food Non-alcoholic beverage
Founded: New Bern, North Carolina, U.S. (1965)
Head Quarter: Purchase, New York, U.S.
Area Served: Worldwide
Indra Krishnamurti Nooyi Zein Abdalla D. Shivakumar
PepsiCo CEO India Chairman of the Board CEO, PepsiCo
HISTORY OF THE PEPSICO
It was first introduced in North Carolina in 1898 by Caleb Braham who made a pharmacy which sold the drink which was known
back then as “Brad’s Drink”, and was later named Pepsi Cola possibly due the digestive enzyme pepsin and kola nuts used in the
recipe. Braham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.
In 1903, Braham moved the bottling of Pepsi -Cola from his drugstore into a rented warehouse. That year, Braham sold 7,968
gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increase to 19,848 gallons. In 1926, Pepsi was
received its first logo redesign since the original design of 1905. In 1920, the logo was changed again. In 1929, automobile race
pioneer Barney Oldfield endorsed Pepsi -Cola in newspaper ads as “A bully drink…… refreshing, invigorating, a fine bracer before a
race”.
In 1931, the Pepsi -Cola Company went bankrupt during the Great Depuration- in large part due to financial losses incurred by
speculating on wildly fluctuating sugar prices as a result of World War I. assets were sold and Roy C. Megargel bought the Pepsi
trademark. Eight year later, the company went bankrupt again. Pepsi’s assets were then purchased by Charles Guth; the president
of the Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace Coca -Cola at
his stores’ fountains after Coke refused to give him a discount on syrup. Goth them had Loft’s chemists reformulate the Pepsi -Cola
syrup formula. During the great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle.
Initially priced at 10 cents, sales were slow, but when the price was slashed to five cents, sales increased substantially. With a radio
advertisement campaign featuring the jingle “Pepsi Cola hits the spot Twelve full ounces, that’s a lot/ Twice as much for a nickel,
too Pepsi-Cola is the drink for you”, arranged in such a way that the jingle never ends. Pepsi encouraged price-watching consumers
to switch, obliquely referring to the Coca-Cola standard of six ounces per bottle for the price of five cents (a nickel), instead of the
12 ounces Pepsi sold at the same price. Coming at a time of economic succeeded in boosting Pepsi’s status. In 1936 alone
500,000,000 bottles of Pepsi were consumed. From 1936 to 1938, Pepsi -Cola’s profits doubled.
Our Vision and Mission
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 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 stewardshi p,
activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable co mpany.
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 p artners and
the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.
Performance with Purpose
At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society – delivering
what we call Performance with Purpose. Our approach to superior financial performance is straightforward – drive shareholder
value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human,
environmental, and talent sustainability.
PEPSICO SLOGAN IN 2009 --
“Har Street ko Jeet…”
Pepsi works on ‘SMART’ formula:
SPECIFIC- Helps the sales force understand exactly what is expected out of them.
MEASUREABLE- ensure that management can track individuals & team performance.
ACHIEVABLE- increase the level of challenges & motivation within the sales force.
RELEVANT- translates the company’s initiatives into market place execution.
TIME BOUND- avoids dragging and ensure meeting deadlines.
Slogans with Logo
1898 Brad's Drink
1903 Exhilarating, Invigorating, Aids Digestion
1906 Original Pure Food Drink
1908 Delicious and Healthful
1915 For All Thirsts - Pepsi: Cola
1919 Pepsi: Cola - It makes you Scintillate
1920 Drink Pepsi: Cola - It Will Satisfy You
1928 Peps You Up!
1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink
1934 Double Size
Refreshing and Healthful
1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel
1943 Bigger Drink, Better Taste
1947 It's a Great American Custom
1949 Why Take Less When Pepsi's Best?
1950 More Bounce to the Ounce
1954 The Light Refreshment
Refreshing Without Filling
1958 Be Sociable, Have a Pepsi
1961 Now It's Pepsi for Those Who Think Young
1963 Come Alive! You're in the Pepsi Generation
1967 Taste that Beats the Others Cold, Pepsi Pours It
1966. Today, products are available in nearly 170 countries. Often PepsiCo snack food products are known by local names. These
names include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom, Simths in Australia, Matutano in Spain, Elma Chips
in Brazil, and others. The company markets Frito-Lay brand.
PEPSICO IN INDIA
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 marked and sold Lehar Pepsi unit in 1991, when the use of foreign
brands was allowed, PepsiCo bought out its partner and ended the joint venture in 1994. Other claims that firstly Pepsi was banned
from import in India, in 1970 for having refused to release the list if 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 tha t PepsiCo and the Coca-Cola Company have “been major targets in part
because they are well -known foreign companies that draw plenty of attention”.
In 2003, the centre for Science and Environment (CSE), a non-government organization in New Delhi, said aerated waters products
by soft drinks manufactures in India, including multinational gained PepsiCo and Coca -Cola Company, contained toxins, including
lindane, DDT, malathion and chlorpyrofos -pesticides that can contribute to cancer, a breakdown of the immune system and cause
birth defects. Tested products included Coke, Pepsi, and 7up, Mirinda, Fanta, Thums Up, Limca and Sprite. CSE found that the
Indian-produced Pepsi’s soft drink products had 36 times the level of pesticide residues permitted under European Union
regulations; Coca-Cola’s 30 times. CSE said it had tested the same products in the US and found no such residues. However, this
was the European standard for water, not for other drinks. No law bans the presence of pesticides in drinks in India.
The Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far
above the norms permitted in the developed world. But India parliamentary committee, in 2004 backed up CSE’s findings and a
government-appointed committee, is now trying to develop the world’s first pesticides standard for soft-drinks. Coke and PepsiCo
opposed the move, arguing that lab tests aren’t reliable enough to detect minute traces of pesticides in complex drinks. On
December 7, 2004 India’s Supreme Court ruled that both PepsiCo and competitor Coca -Cola Company must label all cans and
bottles of the respective soft drinks with a consumer warning after tests showed unacceptable levels of residuals pesticides. Both
companies continue to maintain that their products meet all International safety standards without yet implementing the Supreme
Court ruling. As of 2005, Coca-Cola Company and PepsiCo together hold 95% market share of soft drinks sales in India.
PepsiCo has also been accused by the Puthussery Panchayat in the Palakkad district in Kerala, India, of practicing “water piracy” due
to its role in exploitation of ground water resources resulting in scarcity of drinking water for the Panchayat’s residents. Who have
been pressuring the government to close down the PepsiCo unit in the vil lage?
In 2006, the CSE again found that soda drinks, including both PepsiCo and Cola -Cola, had high levels of pesticides in their drinks.
Both PepsiCo and Coca-Cola Company maintain that their dri nks are safe for consumption and have published newspaper
advertisement that say pesticides levels in their products are less than those in other foods such as tea, fruit and dairy pr oducts. In
the Indian state of Kerala, sale and production of PepsiCo and Coca-Cola, along with other soft drinks, was banned by the state
government in 2006, but this was reserved by the Kerala High Court merely a month later. Five other Indian states have announ ced
partial bans on the drinks in schools, colleges and hospitals.
S.M.V. BEVERAGES, JAMSHEDPUR
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 comme nced 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 plant with a capacity of produce
bottle 220 per minute is totally automatic and also had a modern state of the art inter mix machine for bringing forth the right
blend of flavors. The company continuous to adopt innovative 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 and Productivity, 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 Market ing
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
(Jamshedpur) and increased the production from this new plant.
The capacity of this new plant is 600 bottles per minute. Simultaneously, marketing, company came up in the name of Hyderabad
Marketing Company, Which is catering the need of whole of Jharkhand state. The Company’s highly sophisticated plant an d quality
control laboratory along with the dedication and enterprise of its employees is more than evenly matched by the management’s
sense of understanding and compassion that has insured the company’s 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 ISO 9002, which it is confident of
achieving and would hence become the first food product factory in India to do so.
PHILOSOPHY The Philosophy of S.M.V. Beverages Pvt. Ltd. Establishes the value, believes & guidelines for the manner in which the S.M.V.
Beverages Pvt. Ltd. Is going to conduct its business. Usually the officers of the S.M.V. Beverages Pvt. Ltd. Lay down the cor porate
Philosophy, which an organization follows in its strategic and operational activities. Such a Philosophy may not be conscious ly and
formally stated but may gradually evolve due to the officer’s actions.
Generally an officer has a perception of the type of organization that he wants his company to be the executive committees of
S.M.V. Beverages Pvt. Ltd. Discuss and decide on a corporate philosophy to be followed for strategic management. Consultants may
also be called upon to make an in depth analysis of the organization to suggest an appropriate Philosophy statement.
GOAL SETTING Goals denote what an organization hopes to accomplish in a future period of time. They represent a future state or an outcome of
the effort put in now. A broad category of financial and non-financial issues is addressed by the goals that a firm sets for it. P.S.
Kumar, Director of S.M.V. Beverages Pvt. Ltd. expressed the purpose of his organization as “our goal is to be the most compet itive
and progressive institution in our (i .e., Beverages) industry.” The company stated goals were “growth, innovativeness, high profits
as a barometer of efficiency highly involved employees distinctively charged with pride…”
The main goals of S.M.V. Beverages Pvt. Ltd. are as follows:-
Growth had been achieved in terms of customers & average business per employee, Good product quality & service.
Innovativeness was reflected in a number of new schemes.
A high Profit between its competitors and become industry leader.
Employee involvement had been sought through the delegation of authority and devolution of power to grassroots
levels through a change in administrative structure and the creation of circle.
STRUCTURE OF THE ORGANIZATION For the every concern a structure is necessary on which the compl ete organization should be founded. The existence of a structure
as obvious in every organization whether planed/unplanned or ill planed. To have a structure is not a choice of the organizer . The
choice is only of the form and pattern of the organization. Planed organization structure may be proved logical clear- cut and
streamlined in order to meet the present requirement.
Otherwise it will merely be a makeshift arrangement and the management is rendered difficult and ineffective because
organizational structure affects everyone in the organization. A good organizational structure facilitates management’s
management and the operation of enterprise and it encourages growth. It helps organization to reach its common goal. In order to
make the organizational structure more effec tive one structure that can meet the demand of various factors namely environment,
technology, size and people.
S.M.V. Beverages was taken over by Mr. S.K.Jaipuria in March1999 from Mr.D.N.Kamani along with Rushab Marketing Limited, a
marketing unit. M/s S.K.Jaipuria running this plant very successfully. He is very much enthusiastic to increase the product ion and
sales and to capture the Whole marker of South Bihar, now Jharkhand State. He established another plant in the name SMV
Beverages, Jamshedpur and increased production from this new plant is 600 bottles per minute.
S.M.V. Beverages Jamshedpur has a management boars headed by Mr.S.K.Jaipuria. He holds the top position but the overall
policies regarding managerial decision and all the executive function are performed and look after by the Director Mr.P.S.Kumar
.He has been given the power and authority to manage the company affairs. Therefore, Mr. P. S. Kumar can be recognized as the
Chief Executive. The Director look after all the functional department l ike production, sales, accounts, personnel, purchase etc.
Every department sends report directly to the director and is responsible to him in sense of working. In spite of this all department
are in direct control of the director. Plant superintendent is the head of the production department. He looks after production, that
is bottling process, inspection, storage of new materials and though there is a quality control manager. The controller of accounts
heads the accounts department.
Manager (Personal & Administration) looks after the function of administration, industrial relation, legal jogs security,
welfare etc. The purchase officer In charge of all purchase activities of concern.
S.M.V. Beverages, Jamshedpur is proud of winning Pepsi I.Q.A (Gold), International Quality Award, Gold for the year 2001.
S.M.V. Beverages also setup a PET bottle plant in March 2003. It has a capacity of bottling 40 PET bottles per minute. It is
bottling 500ml, 1.5 lt., 2 lt. PET bottles of different flavors namely Pepsi, Mirinda, 7up, Mountain dew, Slice. At present
SMV Beverages (Jamshedpur) (a unit of SMV Agencies (P) Ltd.) have following Sister Concerns.
Steel City Beverages Pvt. Ltd
Hyderabad Marketing Company
Earlier it had M/s Kamani Food which was only bottling SLICE and in 2004. M/s Kamani Food was merged with SCBPL now
SCBPL is producing SLICE along with other brands of PEPSI. It is mainly bottling 300ml and 250ml, 1.2 l tr (Slice)
Core Capabilities Product Leadership:
Refers to the a bi l i ty to devel op c rea ti ve, premi um produc ts through s pec i a l ized new tec hnol ogi es .
Market Leadership:
Refers to the a bi l i ty to a c hi eve the "PEPSI bra nd i s No. 1" goa l ba c ked by i ts formi da bl e ma rket pres enc e
wor l dwi de.
People Leadership:
Refers to ta l ented peop l e who per form exc el l entl y by i nterna l i zing a nd pra c ti c ing i nnova tions .
Corporate Culture:
Though a c ompa ny i mpl ements per fec t ma na gement s tra tegi es a nd boa s ts of outs ta ndi ng a nd ta l ented
peopl e, i t s houl d ha ve a n a ppropr i a te c orpora te c ul ture to unl ea s h t he power of thes e c a pa bi l iti es .
A 'No'- Challenge: We fos ter a c orpora te c ul ture whereby we s ugges t a n a l terna ti ve before s a yi ng "no" a nd
a ggres s i vel y work towa rds ful fi l l ing our goa l .
'We' not 'I': We purs ue a c orpora te c ul ture whereby we embra c e a s trong tea mwork.
Fun to work: We c rea t e a workpl ac e wh ere i ndi vi duals ' c rea ti vi ty a nd freedom a re res pec ted a nd worki ng
i s ma de fun.
FOLLOWING ARE THE MAJOR CONSIDERATIONS
Clear l ines of authority
Adequate delegation of authority
Minimum managerial level
Unity of directors
Application of ultimate responsibility
Span of control
Simplicity
DIRECROR
Flexibil ity
Proper emphasis on shift activities.
CHRONOLOGY OF ACHIEVEMENT
First plant to achieve 100% result on Pepsi norm (Japan) and got an award.
Its plant to pack large packs---500ML
Commissioning of kamani foods-1988
Started operating for Bottling Pepsi products as a Franchise operation (FOBO) under kusum kamani -1990
First plant to achieve 100% result on Pepsi norm and got an award-1991
Excellence in quality award-1992
IQA Bronze cash award-1993
IQA Bronze cash award-1994
In 2001 received IQA gold status.
In 2002 received IQA Bronze Award
In 2003 new pet plant capacity of 60 BPM commissioned.
In 2004 received IQA silver award.
Achieve ‘Best Plant Team’ in 2004.
ORGANIZATION CHART OF SMV BEVERAGES JAMSHEDPUR
QUALITY POLICY
To produce PEPSI range of beverages maintaining desired quality of products and services.
To attain market leadership and achieve consumer and stakeholders delight.
To achieve continual improvement of the QMS through effective cost reduction measures and reviewing KPI’s.
FOOD SAFETY POLICY
We at SMV Pvt. Ltd Jamshedpur commit ourselves to:-
Produce safe and hygienic beverage products under clean condition.
Comply with all applicable legal and requirements related to food safety.
Ensure through periodic verification, the effective implementation and continual improvement of the food safety
management system
In case of deviation take corrective action, which include disposition, recall of defectives and elimination of root causes.
Educate and motivate all employees to contribute towards effective implementation of Food Safety Management System.
Review Food Safety Policy during management reviews.
3.3 PEPSICO’S PRODUCTS
Following are main products of PepsiCo (India) Pvt. Ltd l imited.
Pepsi
Mirinda Orange
Mirinda Lemon
7 Up
Mountain Dew
Slice
Mirinda Sorbet (Limited Edition)
Pepsi Gold (Limited Edition)
Pepsi Diet
Lehar Soda
Aquafina
Tropicana
Gatorade
Lehar Namkeen
Lays
Kurkure
Uncle Chips
Cheetos
PRODUCT PROFILE
CARBONATED SOFT DRINKS:-
PEPSI
The Joy of Pepsi.
Contains: Carbonated water, high fructose corn syrup, caramel color, phosphoric acid, caffeine, citric acid and natural flavors.