MBA project on PEPSI

A STUDY ON

CUSTOMER PERCEPTION ON BEVERAGES

With reference to

PEARL BOTTLING PVT LTD, VISAKHAPATNAM.

A Project submitted in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By

R PAPI NAIDU

(Regd.No.111250402071)

Under the guidance of

Mr.V.S.K.VARMA

Assistant Professor

DEPARTMENT OF MANAGEMENT STUDIES

MAHARAJAH’S POSTGRADUATE COLLEGE

(Accredited with “A” by NAAC)(Affiliated to Andhra University)

PHOOL BAUGH COLONY, VIZIANAGARAM

2011-2013

DECLARATION

I hereby declare that the project work entitled “A STUDY ON

CUSTOMER PERCEPTION ON BEVERAGES with reference to

PEARL BOTTLING PVT LTD, VISAKHAPATNAM” submitted by me

to the department of Management studies, MAHARAJAH’S POST

GRADUATE COLLEGE, PHOOL BAUGH, VIZIANAGARAM in partial

fulfillment for award of degree of Master of Business Administration is

entirely based on my own study and findings and suggestions were not

submitted to any other institution or university.

Date:

Place: Vizianagaram R PAPI NAIDU

CERTIFICATE

This is to certify that the project submitted by Mr. R.PAPI NAIDU a student of

MASTER OF BUSINESS ADMINISTRATION Regd.No: 111250402071,M.R.P.G

COLLEGE on CUSTOMER PERCEPTION ON BEVERAGES with reference to

PEARL BOTTLING PVT LTD, VISAKHAPATNAM.” is a record of original project

work done by him as a part of his academic curriculum for the award of Master of

Business Administration degree Under my supervision and guidance.

Mr.B.S.N.RAJU Mr.V.S.K.VARMA

(Head of the Department) (Project Guide)

CERTIFICATE

This is to certify that the project submitted by Mr. P.V.V.KUMAR A student of

MASTER OF BUSINESS ADMINISTRATION (Final), Regd.No: 110250402110,

MAHARAJAH’S POST GRADUATE COLLEGE, titled “Study on CUSTOMER

PERCEPTION ON BEVERAGES with reference to PEARL BOTTLING

PVT.LTD, VISAKHAPATNAM.”, is a record of original project work done by him as

a part of his academic curriculum for the award of Master of Business Administration

degree under my supervision and guidance.

K. Venkateswarlu

(Area sales manager of H.C.C.B)

(Project Guide)

ACKNOWLEDGEMENTS

I would like to thank Mr. K. Venkateswarlu, Area Sales Manager,

PEARL BOTTLING PVT LTD, VISAKHAPATNAM for his valuable guidance in

completing this project.

I sincerely convey my thanks to B.S.N. RAJU Department of

Management Studies, and Prof.K.Hanumantharao, Director, M.R.P.G.College for their

co-operation throughout my project work.

I sincerely express our deep sense of gratitude to our honorable Faculty

Member of Department of Management Studies, S Mr.V.S.K.VARMA for taking special

interest in my project work and giving valuable suggestions through out of my project.

Last but not the least I would like to acknowledge and sincerely thank

my colleagues and others who have helped me in the completion of this project work.

Date:

Place: Vizianagaram R PAPI NAIDU

CONTENTS

Page No

CHAPTER-I INTRODUCTION

• About the Soft drink Industry

• Need and significance of the study

• Objectives of the study

• Methodology of the study

• Frame work of the study

• Limitations

CHAPTER-II PROFILE OF PEARL BOTTLING PVT LTD

• Origin and growth

• About the product line

• Organizational structure

• Awards and Achievements

CHAPTER-III CONCEPTUAL STUDY OF CUSTOMER PERCEPTION

• Nature of Customer perception

• Types of Customer perception

• Advantages of Customer perception

CHAPTER-IV PRACTICAL STUDY ON CUSTOMER PERCEPTION

• Effectiveness of Customer perception

• Analysis and Interpretation

CHAPTER-V SUMMARY AND SUGGESTIONS

• Findings

• Summary & Suggestions

• Bibliography

• Introduction

♦ About the Soft drink Industry

♦ Need and significance of the study

♦ Objectives of the study

♦ Methodology of the study

♦ Frame work of the study

♦ Limitations

INTRODUCTION

The latest figures of industrial growth have a continuous strong

growth in durable consumer products, as well as of consumer non-durable.

There has been a slowing down in production of automobiles but that is after

record increase in the last year. As far as Indian Vs foreign companies are

concerned there appears to a continuous decline of Indian owned brands in

national consumer markets. Foreign brands are growing in dominance as

foreign owners adapt to Indian consumer preferences, market realities, and

change management styles accordingly. The lack of strong pre-emptive

action by Indian consumer product companies, that was obvious throughout

the 1990s continued in the last two years. It almost looks as if many of them

are tired of trying to compete and prefer to sell out, pocket the gains and

move on to something else.

SOFT DRINK SECTOR OVERVIEW

The term “soft drink” refers to all types of non-alcoholic,

carbonated, sweetened, flavored beverages etc. they are all artificially

sweetened. The soft drink industry has undergone many changes with

changing consumer needs, wants and also changing Government policies.

This formed the basis for different innovations in packaging such as bottles,

cans, tetra packs and pet bottles in a variety of flavors.

RETROSPECTION OF INDIAN SOFT DRINK INDUSTRY

The soft drinks market till early 1990 were in the hands of

domestic players like Campa, ThumsUp, Limca etc, but with the opening of

the economy and liberalization of economic policies, many foreign

multinationals started ventures in India by buying over competitors, the two

American Cola giants have cleared up the arena and are backing all their

power behind the Indian Franchise of their globe girdling brands.

Pepsi which scores over Coke but this difference is

gradually decreasing (courtesy huge and spending by both the players).

Pepsi entered Indian market in 1991 and Coke re-entered (after they were

thrown out in 1977, by the central Government) in 1993. Pepsi has been

targeting its products towards the youth and it has struck the right chord with

the market and the sales have been doing well by sticking to this youth

bandwagon. Dole on the other hand, struggled initially in the market.

In the span 7 years of its operations in the country it has

changed its CEO four times but finally they seem to have started

understanding the pulse of the Indian consumers. The soft drink market in

India is growing at the rate of 10% every year. With growing Urbanization

and the younger generation, which had liking for non-conventional foods

and beverages there is a good possibility that the per capita consumption will

go up.

This sector can be understood in more detail by the following points.

Background

Segmentation

Consumer habits and practices

Market players and market share

Major players and market share

Distribution Network

Manufacturing process

Retailer’s perception.

CONSUMERS HABITS AND PRACTICES

The following are the various consumer habits and practices

Soft drinks come under the category of products purchase in impulse.

Though the market is carried by brand loyalty the purchased decision

itself is a low involvement decision. This attitude of impulse buying is

slowly changing to occasion-led buying and also to some extent to

consumption through home refrigeration particularly in urban areas.

The market is slowly moving from non alcoholic carbonated drinks to

fruit based drinks and also to plain bottled water due to lower price

and ready availability.

Consumers purchase soft drinks to quench thirst. Therefore people

traveling and not having access to hygienic water reach out for soft

drinks. This accounts for a large part of sales.

Brand awareness plays a very crucial role in purchase decisions.

Consumers prefer convenient and economy products.

Availability in the chilled form effects the purchase decision. This had

made both the companies to push its sales and to increase its retail

distribution by offering Visi Coolers to retailers.

While there is no version to consumption of soft drinks by any age

group, the main consumers of this market are people in the age group

of 30 and below.

Product differentiation is very low, as all the products taste the same.

But brand loyalty is high in the case of kids and people in the age

group of 20 -30 years.

Consumers are sensitive to the outlay where the purchase of beverages

is concerned. Hence the market is price sensitive.

Due to the high cost of soft drinks, consumers prefer beverages like

tea, coffee or other drinks like sherbet and squashes.

NEED FOR THE STUDY

As the other forms in the industry is trying to improve their

market share by developing new techniques and strategies. It is not possible

for the firm to withhold the market share for a long time without dealing

with the factors prevailing in the market, which affect the market condition

in the industry.

It is the time to take the steps to improve the market share of

the Pepsi products it is necessary to conduct the market research.

The following are some important aspects of the market research.

1. The study helps the organization to improve the performance of flavors

with its competitive organization.

2. It helps the organization for rendering better service to their retailers.

3. It also helps on identifying various flavors market share in their respective

competitors.

4. It helps to improving customer satisfaction towards Pepsi products.

OBJECTIVES OF THE STUDY

In view of intensifying competition in the soft drink market, it is

imperative that the brand keeps a constant watch on the market and responds

properly and promptly to the dynamics of the market. It is in view of this

fact that the present study has been taken up for “Pepsi.”

1. To find out the market share of Pepsi and its brands vs. Coca-Cola and its

brands in the areas of Visakhapatnam.

2. To analyze the market and to ascertain the performance of different

brands of the company.

3. To evaluate the market potential of Pepsi products.

4. To offer suggestions for improving the competitiveness of the company.

SCOPE OF THE STUDY:

The scope of the study is confined only to the Market research

and survey conducted. All efforts are made to present an authentic view

regarding taste and preferences of customers. This report provides required

information to the varied problems encountered in the industry.

The data collected are mainly from the survey, market research

conducted and all relevant information is taken from the organization.

METHODOLOGY OF THE STUDY:

The data which is required for the project has been collected through from

two sources. They are:

1. Primary sources.

2. Secondary sources.

1) Primary sources:

Primary data was collected with the help of a questionnaire targeting

the retailers. The questionnaire consists of seven questions, which gives us

the necessary data.

2) Secondary sources:

Some secondary data required for the study is obtained from the Pepsi

Company records, the journals, magazines and web sites. It means the data

is already available been collected and analyzed and other information is

from Newspapers and Magazines.

LIMITATIONS OF THE STUDY

1. The study of the soft drinks industry, which is known to be a seasonally

fluctuating one then present study doesn’t take into account seasonal

fluctuation the results may not suit for all the seasons.

2. Time and expenses were major constraints.

3. Unavailability of recent information due to lack of awareness of the

retailers.

4. The study broadly covers retailers only. It doesn’t include consumer’s

perception.

5. The study is limited to these three areas only.

FRAME WORK OF THE STUDY

The study is organized into five chapters:

Chapter-1: Deals with introduction to soft drink industry, “Competitive

Analysis” and brief profile of Pearl Bottling PVT Ltd. This chapter also

deals with the need, objectives, methodology, limitations and framework of

the study.

Chapter-2: Gives the complete profile of Pearl Bottling PVT Ltd.

Chapter-3: Deals with theoretical aspects of “Competitive Analysis”.

Chapter-4: Deals with analysis and interpretation of Competitive Analysis

of Pepsi and Coca-Cola.

Chapter-5: Deals with the findings, summary and suggestions.

Organizational profile of PEARL BOTTLING PVT LTD

♦ Origin and growth

♦ Vision ,Mission and Values

♦ Products and brands of Pepsi

♦ Organizational structure

♦ Awards and Achievements

INDUSTRY PROFILE

PEARL BOTTLING PRIVATE LTD

Pepsi cola was in India from 1956 to 1961. It left the

country, as its products were not found acceptable to the domestic market.

But recently in 1990 it re- entered into the Indian market where by Pepsi

foods Limited entered into a joint venture with Pepsi Company International

V.S (which is holding 40% of the equity ) and TATA concern Voltas and the

SIC 9each of which have around 25% of its output reserved for Beverages.

Four years since its launch it has established 20 production facilities and

three owned factories hacked by 1500 independent sales distributors serving

over a lakh of retailers, Pepsi food sales are estimated at between 80crores to

150crores in 1996-97. PBPL was appointed as franchise by Pepsi Foods ltd

in 1992.

The premises where in it conducts as its activities was

originally constructed by Camp-Cola unit became insolvent. As a result

Andhra Pradesh State Financial Corporation auctions the premises; in 1990

it was purchased by PBPL. It started production in 1991. Initially, it

produced Mc. Dowell company’s brands are Thrill, Rush, Sprint,

McDowell’s soda & Bagpiper soda. Commercial production started in

Visakhapatnam from June, 1992 onwards In the beginning four drinks were

bottled and distributed namely Pepsi Cola, 7-Up, Miranda and E.V. Soda

and since 1993 Team is being bottled As slice continues to be supplied from

Guntur plant.

Out of this, Pepsi food limited provides them with some benefited like

providing to concentrate as well as by providing thee advertising materials

etc., to the company.

PLANT LAYOUT

The layout of the bottling plant of Pepsi installed by the company

confirms to the product line layout the machines and the equipment are

arranged according to the sequence of operations. The machine and workers

are specialized on the performance of specific operations such as preparation

TYPE OF CAPITAL AMOUNT IN LAKHS

Funds employed

Working capital

Institution finance

60

15

40

of syrup, clearing the bottles, filling the bottles, arranging and bearing the

bottles. All the operations approaches entail continuous movement. The

product layout has been chosen for the following reason.

1. The volume of production is adequate, reasonable equipment

utilization.

2. The demand for the product brands is reasonably stable.

3. The brands are also of standardized products.

4. The supply of material is continuous.

Because of the above reasons the product layout offers certain advantages.

The production cycle is speeded up since national approaches a continuous

movement where by the machine is less than for other types of layout.

FACTORY CAPACITY

The installed capacity of PBPL is 800 bottles per minute or 34

crates per minute. The plant is also having 100 bottles per minute for 1 liter

line.

During the 9 months season the plant has double shifts. Each shift

consists of 8hrs, so, during the summer season the plant is run round the

clock. This is because the demand reaches its peak these summer months.

PRODUCTION SCHEDULE

The production schedule for each brand is fixed daily by filling the

bottles of each particular brand. This has an advantage in then branded

products being manufactured one at a time. The glass bottles are used for

filling up of a particular soft drink belonging of Pepsi, Liquids are sold in

the remote areas the transportation and also in some villages.

MANUFACTURING PROCESS OF A SOFT DRINK

For manufacturing a soft drink the following raw materials are

required.

1. Water 2. Sugar

3. Activate carbon powder 4. Hyflousuper cell

5. Filter paper 6. Essence

7. Bleaching powder 8. Hydrated

9. Ferrous Sulphate 10. Activated carbon (granular)

11. Soda- bi- carbonates 12. Carbon dioxide gas

13. Caustic soda 14. Tri sodium phosphate

15. Plastic crates

The Process of Manufacturing Soft Drinks:

The process of manufacturing soft drinks is mainly divided into three parts.

They are Water, Bottling treatment & Crating. In syrup making

process the syrup of a particular product is prepared by heating sugar with

activated bon powder and filter (Hyflousuper cell) in the treatment tank for a

specified time up to a particular temperature. During treatment most of the

color, odor and some organic impurities are from the sugar syrup. This

treated syrup passed through the filter press filter with filter papers and heat

exchanged and thee clear syrup is collected in the syrup moving tank where

the essence and particular product will be added for which a required

amount of syrup is ready for use in finished products.

The second process is water treatment. As an added Ingredient

water can compromise up to 90% of a soft drink. The quality of water is

thus of a particular importance it the soft drinks manufactures. In this

process water will be brought to the treatment tank and then wetter treatment

chemicals such as hydrated lime, bleaching powder and ferrous soleplate are

added to the tank and are moved thoroughly by the help of a mechanical

stirrer.

The treated water is then passed through then specifically

designed filtration plant containing chemicals such as activated carbon

(granular) and finally the manufacturer will and the get the standard water

i.e. Suitable water i.e. suitable for soft drinks bottling. For marinating

equipment in sanitized conditions they are also no soda bicarbonate.

There the third process is called bottling in which both water and

syrup are mixed together along with carbon dioxide Jar and bottles are

commonly used of filling up so dinks. To ensure the good keeping and

costhetic quality if sift drink it is necessary that bottles are sparkling clean

and sterilized before beverage filling. For cleaning bottles, a machine called

bottle washer is used along with washing elements such as caustic soda and

try sodium phosphate. In the bottle washing atomically which passes

through different designed chamber containing chemical solutions at

different temperature and concentration. Finally clean and sterile bottles are

collected at the opposite end of the bottle washer and are directed towards

the filling machine called filter through conveyor lines. Before it reaches to

the filling machine it is saturated with carbon dioxide gas in carbonator.

Carbon dioxide gas provides the characteristics sparkle to soft drink

and also prolongs the shelf life of the products. Next the bottles are

moved to the machines where the bottles are filled with the beverage

under pressure.

And the bottles are moved towards crowner where the sealing is done

with the help of crowns. The crowns are used in order to retain the

carbonation flavors as well as to protect the products from outside

contaminations and spoilage. The bottles are moved towards the

inspection point where the filled bottles are checked for marinating

the required standard.

Finally, the filled bottles are collected in plastic crates from the

conveyor. The marketable lot is only comprised of a crate. These

crates are mainly useful to protect the bottles and keep them in good

condition and eliminate breakage and are also collected back in the

same crates. Then the finished products are all transferred to the

shipping department for shipment.

COMPANY PROFILE

PEPSI CO. MISSION STATEMENT

Pepsi Company’s, overall mission is to increase the value of their

shareholder’s investment. They believe that their commercial success

depends upon offering quality and value to their consumers and providing

products that are sage, wholesome and economically efficient and

environmentally sound. Provide a fair return to their investors while

adhering to the highest standards of integrity.

ORIGIN OF THE COMPANY:

Soft drinks can trace their history back to the mineral water found

in natural springs. Bathing in natural springs has long been considered a

healthy thing to do; and mineral water was said to have curative powers.

Scientists soon discovered that gas carbonium or carbon dioxide was behind

the bubbles in natural mineral water.

The first marketed soft drinks (non-carbonated) appeared in the

17th century. They were made from water and lemon juice sweetened with

honey. In 1676, the Compagnie de-Limonadiers of Paris was granted a

monopoly for the sale of lemonade soft drinks. Vendors would carry tanks

of lemonade on their backs and dispensed cups of the soft drink to thirsty

Parisians.

THE SOFT DRINK BOTTLING INDUSTRY

Over 1,500 U.S. patents were filed for a cork, cap, or lid for the

carbonated drink bottle tops during the early days of the bottling industry.

Carbonated drink bottles are under a lot of pressure from the gas. Inventors

were trying to find the best way to prevent the carbon dioxide or bubbles

from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by

William Painter, a Baltimore machine shop operator. It was the first very

successful method of keeping the bubbles in the bottle.

Read in over 100 countries with correspondents in all

continents, Soft drinks International is the leading English language

magazine published in Europe devoted exclusively to the manufacture,

distribution and marketing of all soft drinks, fruit juices and bottled waters.

Soft drinks International has an unrivalled pedigree: Since its

launch in February 1888 as THE British & Colonial Mineral Water Trade

Journal, the publication has appeared every month without fail, even through

the darkest days of two world wars. In the 21st century soft drinks have

evolved into one of the most innovative of fast moving consumer goods.

Readers are kept up to date on all new product development from functional

drinks, enhanced waters, daily soft drinks, through to new energy and sports

beverages.

In keeping with its ‘International’ title, the journal has a team

of seven overseas Correspondents based in North and South America,

Europe, Asia and Australia. Their news reportage accompanied by in depth

features and analysis distinguishes Soft Drinks international from other

beverage journals.

THE BEGINNING OF SOFT DRINKS

BY MARY BELLIES

Soft drinks have been used since 1798. Mr. Mary Bellies has

introduced these soft drinks. The people also enjoyed soft drinks very much

and now also soft drinks industries have very huge market in the present

international market

VARIOUS LOGO’S OF PEPSI

http://www.solarnavigator.net/sponsorship/sponsors.htm

http://www.solarnavigator.net/sponsorship/solar_cola.htm


http://www.budweiser-beer.net/beer_guide.htm

MAJOR PRODUCTS OF THE COMPANY

1. Pepsi – Cola Company

2. Pepsi – cola (formulated in 1898)

3. Diet Pepsi (1964)

4. Mountain Dew (introduced by T.P Corporation 1984)

5. Frito – lay Fritos brand chips

6. Lays brand potato chips

7. Cheetos brand chew flavored snacks

8. Ruffles brand potato chips & Rold-Gold brand pretzels.

Pepsi Company’s success is the result of:

1. Superior products.

2. High standards of performance.

3. Distinctive competitive strategies.

4. High integrity of its work force.

PEPSI COLA COMPANY


ENTRY OF PEPSI COLA INTO INDIAN MARKET

PEPSI COLA was in India from 1956 to 1961 and left the country, as

its products were not acceptable by the Indian consumer. But recently in

1990, it re entered into the Indian market where by PEPSI FOODS

LIMITED was entered into a joint venture with PEPSI INTERNATIONAL,

TATA and VOLTAS.

PEPSI Bottlers and Producers of soft drinks buy concentrate and sell

at fixed price and add a margin rationally for its products.

The importance of marketing in any Business organization cannot be

over emphasized. Whether it is small or big organization the long term

survival of the organization depends upon the sales & channel effectiveness.

LAUNCH OF PEPSI PRODUCTS

BRAND NAME FLAVOUR DATE

http://www.softdrinksjournal.com/home.html

PEPSI

MIRINDA

7UP

MIRINDA LEMON

SODA

MOUNTNAIN DEW

AQUAFINA

COLA

ORANGE

CLEAR LEMON

CLOUDY LEMON

SODA

MOUNTAIN DEW

WATER

APRIL 1992

APRIL 1992

APRIL 1992

APRIL 1992

APRIL 1992

DECEMBER 2002

Now the company is producing 9 products as they are as follows:

1. PEPSI

2. MIRINDA

3. 7 UP

4. TEEM

5. SLICE

6. SLICE SODA

7. LEHAR

8. AQUAFINA

9. MOUNTAIN DEW

Some of these soft drinks are manufactured under different size i.e. 250ml,

300ml, 500ml, 1.5liter and 2liter.

MARKETING DEPARTMENT

At the time release of the marketing strategy it is the ever-

dynamic intelligent and shrewd director, a very well experienced and well

groomed personality with over 15 years of experience in bottling units. He is

a very good Strategist and his decisions are decisions are always the best

assets to the marketing department. He is responsible for directing products

aggressively into the market. The sales manager ably stresses the wheels of

Pepsi soft drinks in the entire territory.

Before the onset of summer two capable hands are given as

assistants to the sales managers, and in addition to that eight other sales

executives are recruited to hammer out the volatile market. Visakhapatnam

is assisted by four sales supervisors. The area managers of Vizianagaram

and Srikakulam are assisted by only the two sales supervisors each. The

management of the unit is putting extra emphasis on Visakhapatnam district.

One reason for this is that Visakhapatnam is nowadays is maintaining the

fastest growth rate in the entire Asian continents. Hence the management is

determined to catch up with the potential marketing of this powerful steel

city.

Any organization must decide how many products it would offer.

This is a recurring problem as the market changes. Changes in people’s

taste, patience, competition, growth and new technology come into

existence. The problem of this question comes when there are additional

product lines. In case of soft drinks the retail outlets may desire to buy a

variety of soft drinks preferable from the same company source i.e., the

bottling company as the retail outlet need only a small quantity of cold

drink. If the retail outlet need only a small quantity of one brand of cold

drink it becomes necessary to offer several flavor so that the sales may seem

that sufficient on each call to justify the expenses of making the call. Often

new flavors are added to the product line of cold drink to prevent a

competitor. By establishing a relation with retailers it is also desirable to sell

more than one flavor of cold drink to decrease the security of seasonal or

cyclical fluctuations.

SALES MANAGEMENT OF PEPSI

The ultimate test of the growth of the company is sales. The

oxford dictionary says sales as the exchange of commodities of money

companies which have to run in the long run have to formulate strategies,

which increase sale year by year. “The marketing concept holds that

the key to achieve its organization goals its consists of company

being more effective then competitor in creating, delivering, and

communicating customer value its chosen target market”.

Companies which would ignore this fact will face serious concern in the

future. Keeping both consumer taste and market environment companies has

to formulate strategies to increase sales.

The company spends 20% of gross revenues on sales promotion and

on advertising in `1992-93 the sales turnover of the company was 3.25

lakh crates.

The company is promoting (sales promotion) expenditure on local

sales promotion activities like Shop painting, Wall painting, Glow

signboards etc.

ORGANIZATIONAL STRUCTURE AND MANAGEMENT

The word organization has two common meanings. The meaning

signifies an institution or function as group and the second meaning refers to

the process of organizing the way of work which is arranged and allocated

among members often organization so that the goal of the organization can

be achieved efficiently. The organizing involves balancing the companies.

Needs both for stability on one hand and change on the other hand, an

organization structure means adopting a change or it can be a source of

resistance to change. Organization structure can be defined as “the

arrangement and relationship of the component parts and position of a

compass”. An organization structure specifies its division of work activities

that are linked.

There are mainly 5 Elements of the Organization Structure

1. Specialization of activities.

2. Standardization of activities.

3. Coordination of activities.

4. Centralization and Decentralization of decision- making.

5. Size of the work unit.

The managing director is the head of the organization and

administration. The company is managed on day to day basis by Mr.

Haranath Reddy, Managing director

ORGANISATION STRUCTURE

MANAGING DIRECTOR

Finance Accounts Manager Administration of

Recruitment

Director of Executives

Accountant

Sales & Marketing Dept Production Department

Sales Manager

Factory Manager Accounts Production Manager Factory Manager Accounts

Shipping

Area Sales Manager (2) Production Engineer

Fountain Pepsi Bottles soft drink Quality

Control Manager

Fountain Accountant Sales Executives 102 Distributions

Chemists

Production

SOCIAL RESPONSIBILITIES OF PEPSI CO

As a consumer products company, Pepsi co. does not have the

major environmental problem of heavy industry. Their biggest

environmental challenge is packing generated by their products.

Packaging is important to public health and a critical component

of the distribution system that delivers products to consumers and

commercial establishment. To meet both consumer demand and safeguard

the environment they recycle, reuse and reduce packaging wherever

possible. Each business is also committed to responsible use of resources

required in manufacturing their products.

MAKING OF PEPSI

Actually there’s no secret how to make Pepsi. But there is a

system and that system plus a lot of hard work is what enables Pepsi-cola

and the independent Pepsi-cola bottlers all around the world to bring us that

high quality. Consistently, refreshing Pepsi taste each time we open one of

their products. The system starts with the finest ingredients available…

1. Kola nuts

2. Vanilla beans

3. Flavor oils

4. Sweeteners

The main ingredients found in products include carbonated

water, carbohydrates, sugar, Na, potassium caffeine, aspartame, acesulfame

and purest water they can distill. Then they add the technology and all the

care they can muster to blend these ingredients.

GROWTH OF THE COMPANY

Coca-Cola originated as a soda fountain beverage in 1886 selling

for five cents a glass. Early growth was impressive, but it was only when a

strong bottling system developed that Coca-Cola became the world-famous

brand it is today.

1894…A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain

beverage called Coca-Cola impressed the store's owner, Joseph A.

Biedenharn. He began bottling Coca-Cola to sell, using a common glass

bottle called a Hutchinson.

Biedenharn sent a case to As a Griggs Candler, who owned the Company.

Candler thanked him but took no action. One of his nephews already had

urged that Coca-Cola be bottled, but Candler focused on fountain sales.

1899 … The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could

build a business around bottling Coca-Cola. In a meeting with Candler,

Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to

bottle Coca-Cola across most of the United States (specifically excluding

Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T.

Lupton, soon joined their venture.

1900-1909 … Rapid growth

The three pioneer bottlers divided the country into

territories and sold bottling rights to local entrepreneurs.

Their efforts were boosted by major progress in bottling

technology, which improved efficiency and product quality. By 1909, nearly

400 Coca-Cola bottling plants were operating, most of them family-owned

businesses. Some were open only during hot-weather months when demand

was high.

21st Century …

The Coca-Cola bottling system grew up with roots deeply planted in local

communities. This heritage serves the Company well today as people seek

brands that honor local identity and the distinctiveness of local markets. As

was true a century ago, strong locally based relationships between Coca-

Cola bottlers, customers and communities are the foundation on which the

entire business grows.

MAJOR PRODUCTS OF THE COMPANY

Coca-Cola has been one of the most successful product launches in

our history. In 2007, it sold nearly 450 million cases globally. Put into

perspective, that's roughly the same size as our total business in the

Philippines, one of our top 15 markets. As of September 2008, Coca-Cola

Zero is available in more than 100 countries.

Coca-Cola: Coca-Cola is the most popular and biggest-selling soft drink in

history, as well as the best-known product in the world. Created in Atlanta,

Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a

fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-

Cola was introduced in 1886, patented in 1887, registered as a trademark in

1893 and by 1895 it was being sold in every state and territory in the United

States. In 1899, The Coca-Cola Company began franchised bottling

operations in the United States. Coca-Cola might owe its origins to the

United States, but its popularity has made it truly universal. Today, you can

find Coca-Cola in virtually every part of the world.

Available in the following flavors: Cola, Cola Green Tea, Cola Lemon,

Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.

MISSION

To build India's leading Beverage Company

PepsiCo India has a Vision and Mission

which is a driving force and compels to

perform better and continuously improve in

all aspects. The 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.

MILESTONES OF PEPSI

2009Milestones:

PepsiCo Russia celebrates 50th Anniversary

Gatorade introduces limited-edition Jordan series bottles

PepsiCo pairs with CBS to launch first-ever video player packaged in a print ad

PepsiCo products make 'Best Foods for Women' list in Women's Health magazine

EPA awards PepsiCo's Chicago office with Energy Star certification

Pepsi kicks off its 2009 partnership with the NFL

Smart food adds Peanut Butter Apple flavor to its lineup

Mountain Dew introduces 'Ultra Violet,' Dew's first diet line extension

PepsiCo sponsors National Urban League Conference

PepsiCo reaches merger agreements with Pepsi Bottling Group and PepsiAmericas

PepsiCo agrees to acquire Amacoco, Brazil's largest coconut water company

PepsiCo launches its first lightly carbonated fruit-based beverage in Brazil, Frutzzz

Aunt Jemima brand celebrates 120 years

PepsiCo is awarded several 2009 beverage innovation honors during Drinktec trade show

Sabritas and PepsiCo Mexico Beverages receive three Effie 'Top Marketing Campaign' awards

True North expands offerings with three new nut/fruit combinations—Apple Cinnamon, Citrus Burst and Almond Cranberry

IZZE Sparkling Juice launches at Panda Express restaurants across the country

PepsiCo Brazil signs pledge to change marketing campaigns to children

PepsiCo says it will form new bottling unit; Eric Foss, 27-year industry veteran, will be CEO

PepsiCo joins Healthy Weight Commitment Foundation to help reduce obesity in the US

PepsiCo wins U.S. EPA Smart Way Environmental Excellence award for its leadership in conserving energy

Sabritas and Gamesa-Quaker unveiled the first every hybrid trucks in Mexico

PepsiCo U.K. and Ireland were named as one of the 'Top 50 Places Where Women Want To Work' by The Times, an influential UK newspaper and online publication

PepsiCo is recognized at two events for its dedication to Talent Sustainability and dedication to Asian American employees—2009 Best Companies for Asian Pacific Americans from Asian Entrepreneur, Top 10 Companies for Asian Americans from AMBA

PepsiCo again named to Dow Jones Sustainability World Index and Dow Jones Sustainability North America Index

Propel supports Breast Cancer Awareness with its “hope. Now propelled” website, special packaging and pink caps

Consumer Reports magazine names Quaker Chewy 90 Calorie Granola Bar among best during a taste test on lower-fat snack options

United Nations Association of New York honors Frito-Lay for its environmental efforts

PepsiCo ranks among top companies on Corporate Social Responsibility Index by the Boston College Center for Corporate Citizenship

PepsiCo signs as partner of new Meadowlands Stadium, the future home of the New York Jets and New York Giants

Pepsi Brazil wins the top spot for 'The Most Admired in Brazil' by Brazilian business magazine Carta Capital

PepsiCo named 'Corporation of the Year' by Southern Florida Minority Supplier Development Council for its diligence, commitment and legacy of diversity

The European Union approved the proposed mergers of PepsiCo, Pepsi Bottling Group and PepsiAmericas

PepsiCo Hope delivers more than 50,000 free, healthier snacks and breakfasts to Dallas children

Frito-Lay receives the United Nations Association of New York's 2009 Annual Humanitarian Award in recognition of Frito-Lay's accomplishments in environmental corporate social responsibility

PepsiCo Russia signs the Russian Advertisers Association's pledge to eliminate advertising to children under 12

Pepsi wins 'Football Promoter of the Year' award in Nigeria for its involvement with the development of grassroots football

PepsiCo and Calbee Foods Company announce strategic alliance to make and sell a wide range of food products in Japan

Gamesa-Quaker's Stila brand named 'Brand of the Year' in Mexico at the 6th Anahuac/AI Ries Marketing Awards

IZZE brand launches new flavor of sparkling juice—IZZE Sparkling Lime

PepsiCo open first overseas green plant in China as part of its $1 billion investment in the country

The Environmental Protection Agency (EPA) names PepsiCo as one of its 2008 Water Efficiency Leaders, for its efforts of water efficiency and environmental sustainability

PepsiCo's Valhalla, NY R&D site receives LEED certification for its environmental sustainability efforts

PepsiCo International introduces first non-alcoholic, flavored malt drink, Bario, into Saudi market

Pepsi Jordan wins the King Abdullah Excellence Award, Jordan's most prestigious award on a country level

PepsiCo receives 'Corporation of Year' award from United Cerebral Palsy in recognition of its Enable program, which champions inclusion for people with different abilities in the workplace

PepsiCo's World Headquarters in Purchase, NY, was named as the winner of the 2009 Landmark Award by the American Society of Landscape Architects and the National trust for Historic Preservation

Frito-Lay North America announces new partnership with Terra Cycle, a company that will repurpose Frito-Lay snack packaging into merchandise

PepsiCo named to Ethisphere's 'Most Ethical Companies' for 2009

Quaker is honored with 2008-2009 Brand Laureate Heritage Award for the 'Best Brands-Consumers' by the Asia Pacific Brand Foundation in Malaysia

PepsiCo Chicago is recognized by Business Week magazine as one of the top 'green' headquarters locations in the U.S.

PepsiCo is listed in the top 20 'Ideal Employer MBA Ranking' in Fortune magazine

PepsiCo China beverage group named 'Supplier of the Year' by Wal-Mart China

FLNA and Oberto Sausage Co. hagree to end partnership for distribution and sales of Oh Boy! Oberto brand meat snack products in the U.S. and Canada

Tropicana becomes the first North American brand to be independently certified by the Carton Trust, an organization established to address climate change

Sierra Mist launches new flavor—Sierra Mist Ruby Splash

Pepsi becomes official beverage of Norwegian Cruise Lines

PepsiCo acquires Karinto snack business in Peru

Frito-Lay Sun Chips announces plans to begin using the first fully compostable snack chip bag made from plant-based materials to significantly improve the environmental impact

PepsiCo's Mexico divisions, Gamesa-Quaker, Sabritas and Gatorade,

receive the distinctive Corporate Social Responsibility award from

Cemefi, the Mexican Center for Philanthropy, for their Talent

Sustainability efforts

Wal-Mart Mexico names PepsiCo Beverages Mexico as the 'Supplier of the Year'

Aquafina, Diet Pepsi, Pepsi and Mountain Dew top the 2009 Brand Keys Customer Loyalty Engagement Index

Lipton launches new Sparkling Green Tea—the first-ever sparkling beverage from the Lipton trademark

Consumer Reports names Quaker products among its top choices at supermarkets in their 'Great Every Day Products' article

The U.S. Environmental Protection Agency awards PepsiCo a 2009 Energy Start Sustained Excellence Award for its energy efficiency program

PepsiCo announces intention to acquire its two largest anchor bottlers, The Pepsi Bottling Group and PepsiAmericas

PepsiCo's Tor Trix brand receives the 'Hall of Fame of Guatemalan Brands' award from the American Marketing Association

PepsiCo introduces three new products—Pepsi Natural, Pepsi Throwback and Mountain Dew Throwback, all sweetened with natural sugar

PepsiCo Ireland is recognized as one of the '50 Best Workplaces' by The Great Places to Work Institute

PepsiCo Chicago Sustainability Center achieves LEED Platinum certification from the U.S. Green Building Council, making it the fist in the Consumer Products sector to receive the prestigious Platinum distinction

Frito-Lay launches $2 line for consumers seeking value

PepsiCo India launches Nimbooz by 7Up, a beverage inspired by India's favorite lemonade drink

Tropicana introduces Trop50, the first orange juice with the all-natural sweetness of Stevia

PepsiCo is recognized for its Diversity and Inclusion program by three leading business publications—Diversity MBA, Diversity Inc., and DiversityBusiness.com

PepsiCo introduces first climate-friendly vending machines to the U.S.

Gatorade's G2 launch topped Information Resource Inc.'s list of most successful product launches of 2008

Aquafina launches the Eco-Fina Bottle, the lightest weight bottle in the market

Frito-Lay introduces new Smart food popcorn clusters Doritos Super Bowl XLIII ad ranked number one by USA Today's Ad

Meter

AMP Energy unveils three new line extensions—AMP Energy Lightning, AMP Energy with Black Tea and AMP Energy with Green Tea

PepsiCo scores major league, multiyear sponsorship with both New York Mets and New York Yankees

Latina Style magazine recognizes PepsiCo among the leading companies for Latinas at the Style 50 Awards and Diversity Leaders Conference

Spitz Brand has been named one of Canada's '50 Best Managed Companies' by the National Post

PepsiCo Greater China opens newest bottling plant, Chengdu Pepsi Beverage Co. Ltd. in West China

PepsiCo named 'Corporation of the Year' by Southern Florida Minority Supplier Development Council for its diligence, commitment and legacy of diversity

Gatorade India establishes new training center for most-talented cricket players

Frito-Lay North America adds more than 1,000 fuel-efficient vehicles to its fleet

PepsiCo announces a multi-year distribution agreement with Rock star Energy Drink

Tostitos brand crowns six University of Texas fans as the champions of the Tostitos 'Race for the Bowl' competition and awards them $200,000 for their school's scholarship fund

IZZE Sparkling Juice becomes available at Sam's Club

Frito Lay Turkey launches its second better-for-you snack, Cheetos Rings

Eleven PepsiCo China bottling plants are honored as '2008 Enterprise of Excellence in Water Saving' facilities at the 2008 Chinese Beverages Industry Association annual meeting

• CONCEPTUAL STUDY ON CUSTOMER PERCEPTION

• Defining Customer value and perception

• Nature of customer perception

• Objectives of customer perception

• Attracting and retaining customers

Why Survey your Customers?

The following are all compelling reasons to survey your customers:

• Customer Loyalty: Understand the magic – what they like about you

and what they dislike. Knowing what keeps them coming back over

and over again is the secret to your success. Loyalty is the magic

when they start talking about you and referring you to others.

• Customer satisfaction: Satisfied customers are those who do not

have outstanding negative issues concerning you on their mind. This

doesn’t mean everything has always been perfect. Sometimes things

may not have gone all right. In all such situations you gave your

customers a chance to talk to you. Sympathetic listening to customers

is essential. Online surveys provide a way where customers get a

chance to get their side of the story out without being interrupted. A

second essential is follow-through. Proper tools of analysis will help

you segment your customers into different categories based on what

you need to do in return.

• Effective Communication: By inviting customers to talk to you and

through careful design of your survey you can effectively inform your

customers about things they may not know or remind them of

important changes or innovations in your organization? This is clever

because customers will read your survey more carefully than most

other communication you send them.

• Spotting Trends: Beyond understanding the drivers behind loyalty

and satisfaction of your customers, you can benefit from the wisdom

of the masses by asking them for their ideas and spotting patterns in

their feedback. Spotting such trends ahead of competition could offer

you a significant advantage.

Customer Satisfaction and Customer Loyalty are sometimes not

clearly distinguished by practitioners of customer surveys. While customer

satisfaction refers to the customer’s view of a process or product you

provide them, loyalty captures how a customer feels about the relationship.

Not all satisfied customers are loyal customers. Loyal customers may

sometimes be dissatisfied but they draw from their history they have with

you to overcome the adverse impact of an occasional dissatisfactory

experience.

As you design your customer survey, it helps to know what you are

measuring. A focused questionnaire will provide higher value. Both

satisfaction and loyalty should be investigated but knowing that they are

different will help you focus and separate these studies.

Mode refers to how you reach your customers to invite them to your surveys

and how they return the completed survey to you.

To send invitations, your options include:

1. In-person meeting

2. Telephone

3. Hand-delivered written invitation

4. Direct mail

5. Link/attachment/note in email

Irrespective of the method of invitation, customers may register their

responses using any of the following modes:

1. Face-to-face interview

2. Telephone

3. Hand-delivered written responses

4. Written responses delivered via direct mail

5. Faxed written responses

6. Written responses sent via email/email attachment

Obviously, the most efficient means of doing this may be to deploy surveys

online and invite your customers via email. However, you may not have

email addresses for everyone. It is tempting to post a link on your website

and invite every visitor to your website to participate in the survey. The

obvious problem with this approach is loss of control over who completes

they survey. Such loss of control leads to GiGo (Garbage In Garbage Out) –

a fancy way of saying you can’t trust the results of your survey since the raw

data is questionable.

Even if you don’t have an email address for every customer, it is the rare

customer who may not have internet access – particularly in the US, Canada

and Western Europe. So even if invitations to participate in the survey have

to be sent via direct mail, it would be vastly more efficient to invite them to

a website to complete the survey instead of sending back paper surveys that

need to be scanned before data can be analyzed.

Some common mistakes include:

1. Poor timing: Know your customer’s business cycle. People will not

respond to your surveys when they are going through “crunch” time.

Similarly, it may matter whether your survey was deployed on a

weekday or weekend since the email reading patterns of business

customers and consumers are different on those days. You should

time your email invitation to reach them at a time when they are most

likely to have free time.

2. Failure to speak their language: Customers should not be burdened

with jargon they are not intimately familiar with. Questions should be

precise and in simple language. Consider deploying the survey in

languages besides English whenever there is a chance that other

languages may be primary to a significant fraction of your customers.

3. Surveys that are too long. If your survey runs longer than 10

minutes, you should

a. Expect a poor response rate

b. Advise your customers in advance (instead of them discovering

it as they keep going through your survey hoping it would end

soon).

c. Have very good reasons why you couldn’t break that survey

into two different surveys to be deployed separately.

4. No follow through: Every survey builds expectations. If you don’t

intend to do anything about issues most of your customers are likely

to raise about your organization, consider not conducting the survey.

5. Invites that never reach your customers: Increasingly, spam filters

catch survey invites sent via email. Customers can’t respond to

surveys they never received, no matter what the incentive for

participation. Ask your online survey provider if they have the ability

to avoid the pitfalls of spoofed email which is most likely to end up in

spam filters.

6. No Institutional Memory: Before you deploy your net customer

survey, spend some time understanding what issues were explored in

prior customer surveys. It may benefit the organization to have a

“common section” in the survey that helps you track customer’s

perception of your organization in some areas over time and also

incorporating some new questions on issues of the day.

HOW TO DO CUSTOMER SURVEY:

The word customer isn’t necessarily someone in a different

organization who pays you for your goods or services. A broader definition

has evolved whereby anyone whom you provide a service, solution or

product and whose perception of you impacts your future success is a

customer. To a company, all its employees are also its customers. To a

company’s IT department, every computer user is a customer. And then, of

course, there is the traditional customer, people who pay you money for a

product or service.

The purpose of Customer Surveys is to help you discover how to

make yourself more valuable to the people you serve. Successful

organizations offer their customer the opportunity to provide feedback at and

around every point of interaction. Such customer feedback is the basis of an

improvement cycle in place at the most successful organizations.

Customer surveys are best when they are targeted. Targeted surveys

explore a well-defined issue. Such focus helps investigate the issue fully

while still keeping the survey short and interesting to survey participants.

Equally importantly, the organization’s leadership must be committed to

taking action based on the findings. Without such focus, surveys can become

too broad, lengthy and the multitude of issues may dilute any actionable

insight.

Customer surveys can be event-based (around an interaction with

customer, e.g. one week after a purchase) or calendar-driven (once every

year). Good surveys will enhance customer loyalty and poorly designed

surveys can deepen the negative perception customers may have (in addition

to not offering any valuable insight). Incentives for participating in survey

can boost response rates but the most valuable reward to your customers

may be to address the issues they identify in the survey.

If multiple departments in your organization survey your

customers, you should worry about survey fatigue and incorporate a Touch

Rules Manager. Survey fatigue refers to the situation when one person feels

over-surveyed by your organization and as a result stops responding to

survey requests. Touch Rules Manager is a technology solution that

automatically ensures you’re not surveying any one person too frequently

and are able to tap into a diverse set of customers for feedback.

How to avoid Over-Surveying your Customers

Over-surveying dilutes the value of your surveys. Each “touch” –

every time a customer is contacted with a request to submit their feedback –

should be carefully thought through in light of current and future business

needs. The objective of each survey should be clearly articulated and used to

set proper customer expectations. Setting proper expectations on what you

will do with survey findings and then following through communicates a

positive message about your organization.

There are several things you can do to ensure your organization does not

over-survey its customers:

1. Think Organization-wide: It is important to start by identifying all

the customer surveys conducted by your organization. You may save

time and money by replacing fragmented and disparate survey

initiatives with coordinated studies that ensure all stakeholders get the

information in they need in a timely fashion. Such an exercise should

eliminate duplication of effort and streamline your surveys. Equally

importantly, your customers will appreciate getting fewer surveys at

times that are more convenient to them while still being able to share

all essential feedback with you. To facilitate such organization-wide

thinking, Zarca Interactive provides a Survey Calendar feature which

helps organizations plan and track their survey initiatives.

2. Diversify Survey Invitees and Respondents: This is to help you

uniformly distribute the number of surveys you send out. Make sure

no single customer gets more than a number of surveys in a defined

period of time. Also, reward survey respondents by not sending them

another survey within a defined period. Zarca Interactive helps you do

such “touch rules management” automatically. The computer keeps

track of all invitations and responses and you simply instruct it to

determine invitee list based on who has received how many

invitations as well as who has responded to recent surveys.

Survey Training and Support:

Training on Use of Zarca’s Solution

Training sessions using Web conference are offered daily and led by a Zarca

Solution Expert. Comprehensive training on use of our solution is provided

by breaking these into modules on Survey Design, Survey Deployment,

Reporting and Analysis and Account Administration. We understand that

you may need refresher trainings and so do not restrict the number of times

customers may attend training.

Strategic Account Management

During the course of your survey projects you can call upon the expertise of

your assigned Strategic Account Manager (SAM). Your SAM will be

equally as committed to your success with your survey project. She will

offer you assistance in any of the following areas upon request:

• Overall corporate survey strategy

• Strategy/approach with respect to a new project

• Review of your existing questionnaire for any obvious and significant

departure from Best Practices

• Assistance with design of a new questionnaire

• Best season, time, day of launching a study

• Consideration of alternate modes of survey deployment Training

Support

Support is provided by our team of US-based Solution Specialists via phone

or email during normal business hours. Solution Specialists are well-versed

in the operation of our platform and they can assist you should you

experience difficulties or need refresher on how you may accomplish a

specific task. If your questions need the input of a Strategic Account

Manager, you will be directed to one by your Solution Specialist.

Survey Educational Seminars

Effective surveying is both an art and a science. Add to that the dynamics of

the Internet where acceptable behavior and practices quickly become taboos

(and the reverse is also certainly true), and you can quickly see why our

customers asked us for a Monthly Educational Seminar. This 30-45 minute

educational seminar is prepared by a professional with experience and

expertise in online surveys. Course curriculum is developed in consultation

with clients and presents the latest trends and recommendations on how to

be more effective with surveys. Educational seminars are provided as a free

service to all customers.

Advantages and Disadvantages of the Survey Method

Strengths:

• Surveys are relatively inexpensive (especially self-administered

surveys).

• Surveys are useful in describing the characteristics of a large

population. No other method of observation can provide this general

capability.

• They can be administered from remote locations using mail, email or

telephone.

• Consequently, very large samples are feasible, making the results

statistically significant even when analyzing multiple variables.

• Many questions can be asked about a given topic giving considerable

flexibility to the analysis.

• There is flexibilty at the creation phase in deciding how the questions

will be administered: as face-to-face interviews, by telephone, as

group administered written or oral survey, or by electonic means.

• Standardized questions make measurement more precise by enforcing

uniform definitions upon the participants.

• Standardization ensures that similar data can be collected from groups

then interpreted comparatively (between-group study).

• Usually, high reliability is easy to obtain--by presenting all subjects

with a standardized stimulus, observer subjectivity is greatly

eliminated.

Weaknesses:

• A methodology relying on standardization forces the researcher to

develop questions general enough to be minimally appropriate for all

respondents, possibly missing what is most appropriate to many

respondents.

• Surveys are inflexible in that they require the initial study design (the

tool and administration of the tool) to remain unchanged throughout

the data collection.

• The researcher must ensure that a large number of the selected sample

will reply.

• It may be hard for participants to recall information or to tell the truth

about a controversial question.

• As opposed to direct observation, survey research (excluding some

interview approaches) can seldom deal with "context."

Strategic Objectives of Customer Surveys:

There are basic functions that all customer surveys should accomplish in

order for a company to fully optimize their service.

Evaluate Performance: Like a job evaluation, the customer survey should

provide a clear indication of how a company performed in regards to

customer satisfaction, employee training, knowledge, and service. This may

include such questions as if the customer plans to return to the establishment

and why or why not. The customer may have had a wonderful experience

but doesn't plan on returning simply because they may live in another part of

the country or world and their discussion not to return having nothing to do

with the type of service they received.

Diagnosis: The role the customer survey is to understand what it is that

does or does not work well for your customers. Customer surveys are not

intended as a means of punishment for your employees. Surveys should

provide a diagnostic map from which you can adjust business processes

and/or product designs and should be a resource used purely for

understanding and providing you with customer feedback.

Many companies have 1-800 lines where customers can call and voice

their opinions on products, and services. By providing customers this

service, the organization can catch problems and quickly resolve them, with

the main goal being to quickly solve any and all problems before they

escalate. In addition, the 1-800 numbers are also used to report positive

behaviors and action from employees. One major retailer reported that one

year after initiating their 1-800 number, 98% of all calls were to report what

the company was doing right instead of what they were doing wrong. Again,

surveys should diagnosis what is working as well as what isn't working.

Capturing Customer Data: Another purpose of customer surveys is to

capture accurate customer information. With so many people being transient,

organizations need a way of compiling and maintaining up-to-date names,

addresses, email listings, and phone numbers of their customers. This

information makes it possible to limit the number of mailing that are sent out

to current customers as well as insuring that valuable customers receive

rewards points and promotional information.

This information does not have to be limited to only contact

information. It can also include contact preferences, lifestyle, as well as

birthdays and anniversaries. However, with privacy becoming a volatile

issue, what information you collect on your customers, you must never sell

this information or provide it to another party without first receiving written

consent from your customers. When customers realize that their information

is secure with your company, they will be more receptive in providing you

with information.

Marketing Strategies: Another function of customer surveys is to say

'thank you? For your purchase or using our product or service. The main

purpose of this is to communicate the corporation's appreciation for the

customer in selecting your business, product, or service. Many times this

simple act will lead to repeat purchases from the customer. This is basically

a retention strategy.

Putting it all together: It is not necessary for a customer survey to have

each of these functions in place at the same time. For example, it may be

necessary to gather diagnostic information on a quarterly basis or once you

have implemented a new product or service to understand how it is being

received by your customers. Whereas you may want to continually run, a

performance appraisal survey and reward employees and branches that

receive exception marks. On the other hand, if collecting customer

information is not a priority, then your corporation may want to dismiss this

type of survey.

Going back to the hotel, which I stayed at, by the clerk's actions I can

only assume that the corporation used their surveys as a way of discovering

problems, then correcting these problems by disciplining their employees

instead of using it as a means for rewarding branches and employees for

excellent service. This negative action will eventually breed distrust and

discontent among their employees. Discontent employees will only mean

discontent customers. Happy, enthusiastic employees translate into happy

customers.

FREMONT DINNER TRAIN HISTORY:

Fremont Dinner Train, a for-profit corporation, was founded by a group of

eight investors in August of 1988. Negotiations were consummated with the

Eastern Nebraska Chapter of the National Railway Historical Society to

operate on their tracks running from Fremont to Hooper, Nebraska

(representing fifteen miles of track). The agreement reached then carried

forward, calls for the Historical Society doing business as the Fremont and

Elkhorn Valley Rail Road to provide an engine and crew to pull our dining

cars.

Actual operations began on October 22, 1988 with our car Elkhorn River,

while our second car Maple Creek was renovated. Virtually all of the

remodeling was accomplished by local trades people and it joined the train

by December 15, 1988.

Over the course of the next two years, main-line sound and a closed

circuit television/VCR/video system were installed. Additional refinements

have continued to be made to these two cars both in decor and various

systems. A new power car (N&W #410) was purchased in 1990 to provide a

more adequate power source and allow potential future growth.

By mid-February 1997, a third dining car, Rose Creek, (another Canadian

National and Via Coach) entered our service with an additional 56 seats and

a second galley.

Within a month former Milwaukee Road car, #193 Fox River was added

primarily as a storage car. Currently in reserve, it was resurrected from a

fire-gutted shell. Fox River was a former first-class parlor car.

Fontanelle Springs, (Ex CN/Via) joined the fleet officially in December of

1999. It is essentially a dual service car technically a lounge and diner.

With a seating potential of 36 seats the train officially has a capacity of 192

seats if the lounge (bar) area, which is now the main service center of the

train.

Added in late June 2000, our newest power car, Clear Creek, formerly a

Milwaukee Road Baggage-Dorm car replaced Fox River. A portion of the

car is used for our new generator; the other part is used primarily for

storage. Eventually, the small rooms in Clear Creek may be used for private

dining rooms.

Over the years, a number of entertainment formats have been added

including: Murder Mysteries, Melodramas, USO dinner shows, Wine-tasting

dinners, theme occasions, holiday runs, period movies, and even an

occasional dance floor.

• Practical study on Customer perception

♦ Analysis and Interpretation

1. Which drinks are available in shop.

Pepsi : 67

Coke : 60

Both : 73

0

20

40

60

80

pepsi coke both

Series1

INTERPRETATION:

From the survey, it is revealed that Pepsi(67%) is successful

in making its product available in almost every corner of the cities where

as coke(60)% is lagging behind a little to coke and both are available at

73%.

2. TOP BRANDS PURCHASED BY CONSUMER IN SHOP

PEPSI BRANDS COKE BRANDS

7UP

SLICE

PEPSI

59

44

11

SPRITE

MAAZA

FANTA

21

8

3

0

10

20

30

40

50

60

7UP SLICE PEPSI

PEPSI BRANDS

Series1

INTERPRETATION:

Among all the products of Pepsi, the products 7up

(59%), has hugest sales and slice (44%) has second highest sales and

Pepsi(11%) of sales.

0

5

10

15

20

25

SPRITE MAAZA FANTA

COKE BRANDS

Series1

INTERPRETATION:

Among all the products of coke, the products sprite

(21%), has hugest sales and maaza (8%) has second highest sales and

fanta (3%) of sales.

3. Your sales in bottles per day.

Pepsi : 52

Coke : 48

46

47

48

49

50

51

52

Pepsi Coke

Series1

INTERPRETATION:

Among the survey, it is observed that Pepsi sales (52) per

day, while coke sales(48) per day.

4. DO YOU REQUIRE SERVICE BY DRINK COMPANY AS FOLLOWS.

DAILY : 174

ALTERNATEDAYS : 23

WEEKLY TWO TIMES : 3

0

20

40

60

80

100

120

140

160

180

Daily Alternatedays

Weeklytwo times

Series1

INTERPRETATION:

It is revealed that from the survey that the company’s

frequency of promotional activities is timely and beneficial.

5. ARE YOU SATISFIED WITH PEPSI SERVICE

GOOD : 131

SATISFATION : 45

BAD : 0

0

20

40

60

80

100

120

140

Good Satisfaction Bad

Series1

INTERPRETATION:

Most of the retailers said that the service provide the Pepsi

company is good (131%) and satisfaction at (10%), bad at(0%).

6. ARE YOU SATISFIED WITH COKE SERVICE?

GOOD :115

SATISFIED :26

BAD :0

0

20

40

60

80

100

120

GOOD SATISFIED

BAD

Series1

INTERPRETATION:

Most of the retailers said that the services provided the

coke company is good (115%), satisfied (26%) and bed (0%).

7. TRADE SCHEME OFFERED BY WHICH COMPANY ARE GOOD TO YOU.

PEPSI : 108

COKE : 86

0

20

40

60

80

100

120

PEPSI COKE

Series1

INTERPRETATION:

It is found that most of the retailers knew about the trade

schemes by the company. The again proves that the company is maintaining

effective communication.

8. CONSUMER PROMOTIONS OFFERED BY WHICH COMPANY ARE BEST.

PEPSI : 95

COKE : 57

0

10

20

30

40

50

60

70

80

90

100

PEPSI COKE

Series1

INTERPRETATION:

It is revealed from the survey that the company’s

frequency of promotional activities is good and bad.

9. DO YOU FEEL TV ADVARTISEMENTS BY DRINK COMPANIES HELP IN MORE SALE OF DRINKS?

YES : 108

NO : 92

80

85

90

95

100

105

110

YES NO

Series1

INTERPRETATION:

It is found that the product is sales in the market; most

people said that TV advertisement is important.

10. HOW IS SALE OF DRINKS THIS YEAR Vs LAST YEAR IN YOUR SHOP.

Good : 197

Less : 2

Same : 1

0

20

40

60

80

100

120

140

160

180

200

Good Less Same

Series1

INTERPRETATION:

It is revealed from the survey, the drinks sales is good

comparing to this year Vs last year.

11. WHAT IS PERCENTAGE OF JUICE BASED SOFT DRINKS SALES IN YOUR SHOP.

a) 30% : 60

b) 20% : 116

c) 10% : 24

0%

2000%

4000%

6000%

8000%

10000%

12000%

1 2 3

Series2

Series1

INTERPRETATION:

It is revealed from the survey, the more sales 20% of juiced

based soft drinks sales.

12. WHAT IS THE PERCENTAGE, CONTRIBUTION OF SOFT DRINKS BUSINESS IN YOUR TOTAL SHOP BUSINESS?

ABOVE 50% : 2

ABOVE 30% : 106

ABOVE 10% : 92

0

20

40

60

80

100

120

ABOVE 50%

ABOVE 30%

ABOVE 10%

Series1

INTERPRETATION:

It is revealed from the survey, in the total outlets soft drinks

sales is high compared to total shop business.

13. SOFT DRINKS ARE CONSUMED BY MOSTLY.

MALE : 0

FEMALE : 0

BY ALL PEOPLE : 199

YOUTH : 1

0

20

40

60

80

100

120

140

160

180

200

MALE FEMALE BY ALLPEOPLE

YOUTH

Series1

INTERPRETATION:

It is revealed from the survey, in the total outlets more

consumed by all people.

14. HOW DO YOU (RETALIER) BUY SOFT DRINKS (PEPSI AND COKE)

CASH : 200

CARD : 0

0

20

40

60

80

100

120

140

160

180

200

CASH CARD

Series1

INTERPRETATION:

It is revealed from the survey, the total outlets buy soft

drinks with cash.

15. WHAT IS THE PERCENTAGE OF PET BOTTLES TO YOUR TOTLE SOFT DRINKS SALES?

ABOVE 5% : 13

ABOVE 3% :21

ABOVE 1% : 87

0

10

20

30

40

50

60

70

80

90

ABOVE 5% ABOVE 3%

ABOVE 1%

Series1

INTERPRETATION:

It is revealed from the survey, the pet bottles sales above1%

compared to total soft drinks sales.

16. Preference of Visi Coolers in the Market.

Pepsi : 40

Coke : 30

DOC : 30

0

5

10

15

20

25

30

35

40

Pepsi Coke DOC

Series1

INTERPRETATION:

It is revealed from the survey, the total outlets 40 Pepsi Visi

collars in the market.

17. Type of Outlet in the Market.

Convenience : 35

Grocery : 12

Bar : 3

0

5

10

15

20

25

30

35

Convenience Grocery Bar

Series1

INTERPRETATION:

Out of the total outlets that were surveyed majority of

them where convenience (35%) stores followed by grocery (12%) and very

few bar(3%).

• Summary and Suggestions

♦ Findings

♦ Summary & Suggestions

♦ Bibliography

SUMMARY

Hot summer is so the time when the battle of bottles reaches the peak

every year the world soft drink industry is headed by two giants, coca-cola

leads market share Pepsi with about 30% and few second their brand capture

a combined 20% of the market share. The Indian soft drink industry is

unique it itself. Its diversities are they cultural, regional and climate or in the

faster pose a stiff challenge to any soft drink manufacturer.

The success of the manufacturer depends on the ability to spread his

products for the wide and market to accessible to consumers indistinct

places. The increase in competitions mudding it very difficult to find

dealers, to stock the products with so many new products available, there is

battle for shelf space. In order to get the large slice of the market share, the

manufactures are to control franchise freedom. It is the bottler along with the

retailer which is actually implementing the decision of the company. The

success depends on how well the bottles do in that territory allotted him.

The main objective of the study is to evaluate the marketing

performance of PBPL ltd. with that of its competitors and also to know the

range of availability of Pepsi soft drinks to the consumers. The study has

been done in the form of retail store survey by which the information was

collected with well structured questionnaire and Perform by interviewing the

retailers and examining the outlet. A sample of 106 outlets was taken for the

study in Visakhapatnam.

The major raw materials required for manufacturing the various

brands of soft drinks are flavor essence or concentrate, sugar, water etc,

concentrate will be supplied by Pepsi foods ltd. Sugar is purchased from

wholesale sugar market. The water requirement is met by own bore wells

and other raw materials are brought from local market.

In the soft drink industry in which the success of any company largely

depends upon the capability of marketing its products. Every company in the

industry manufacturers the flavors and there is no much difference in the

taste of the product. The difference will be generally in positioning of the

product and creating an image in the minds of the consumer. For this

company has to concentrate on all marketing mix elements i.e. product,

price, promotion and distribution.

In the soft drink industry in India there is so much of competition

amongst the major competitors. The price of bottle of all major companies is

almost same. The price of the soft drink is influenced many factors and costs

which are involved. However, the final price for the ultimate consumer will

be set by the main company i.e. manufacturer of the concentrate.

The PBPL is doing well in promoting the sales of its products. PBPL at the

local sponsors mini exhibitions, fetes, cultural activities, tussahs, food

festivals and school/college celebrations etc. PBPL is also introducing some

of the schemes like giving gifts to best selling retailer ad also doing trade

related sponsorships.

The company is using different levels of channels for the different

territories according to their convenience and to serve the people in a

different way. The company has its own sales force to distribution to retail

outlets in Vizag city market. But for district market company will send the

stock to the wholesaler who will further distribute to the allotted retail

outlets.

The company will set target to the sales force for each and every

month for each and every zone. The target will be set by taking into

consideration the season of the particular month and they sales of that

in the previous . With the above brief summary , it is evident that the

company is rapidly growing to become the market leader in the present

economic situation and this is mainly due to the superiority in the

advertising and quality of its soft drinks and its great appeal on the

younger generator.

FINDINGS

Availability of Pepsi outlets are very less compared to Coke not even

50% of total coke outlets.

Negligence towards retailers is high in some areas. Some retailers are

rejecting to sell Pepsi only because of irresponsible behavior in the

management.

Pepsi is competing well with Coke by executing some strategies like

providing some schemes, offers, coupons and attracting consumers.

Outlet in which it is locating and the area which is it is belong to

influencing the sales of the product.

Promoting and advertising of the product is effective and expensive in

Pepsi. Coke is already leading market now so they don’t much

concentrate on this.

Usage of Pepsi Visi Coolers is up to the mark compared to the status

of the outlets which it owns.

In some areas in Srungavarapukota the Pepsi service is very poor

when compared to Coke service.

Most of the consumers prefer soft drinks because of better taste and to

quench out their thrust. But now-a-days due to the changing food

habits consumers have started adding soft drinks.

Preference of Coke drinks by the retailers and consumers is very high

in number compared to Pepsi by considering some factors like Taste,

Quality, Trust, Goodwill of the company etc.

SUGGESTIONS

Care should be taken to ensure that coke drinks are not present in Pepsi

coolers.

Retailer should be aware of all the promotional activities of Pepsi.

Continuous market research should be conducted by Pepsi in order to

update the information.

Brand and organization image should be created by providing proper

service to the retailer throughout the period of time.

In house, computerization may be useful to improve the performance of

the company and gain competitive edge.

More emphasis on retail outlets which were not covered in the city,

would improve marketing performance.

More concentration towards customer and retailers complaints would

lead to more customer satisfaction.

More awareness programs to make the customers feel that there are no

toxicants that are harmful to the health of humans.

Company has to increase the quality and service to the retailers.

QUESTIONNAIRE

1.Pepsi Company drinks available in shop.

a. Pepsi b. Mirinda orange c. mirinda lemon d. 7up

e. Tropicana twister f. Mountain dew g. slice h. evervess sc

i. diet Pepsi j. Aquafina water k. nimbooz l. total ticks

2. Coke Company drinks available in shop.

a. Thumps up b. fanta c. coca cola d sprite

e. kinley water f. Kinley soda g. maaza h. limca

i. diet coke j. minuate maide k. Nimbooz fresh l. total ticks

3. Top brands purchased by consumer in your shop.

1st.__________ 2nd.____________

3rd___________ 4th._____________

4. Your sales in bottles per day_____ bottles.

a. Pepsi bottles sold_________

b. Coke bottles sold_________

5. Do you require service by Drinks Company as follows

a. daily

b. alternate day

c. weekly 2times

6. Are you satisfied with Pepsi service?

a. Good

b. Satisfactory

c. Bad

7. Are you satisfied coke service?

a. Good

b. Satisfactory

c. bad

8. Trade schemes offered by which companies are good to you?

a. Pepsi

b. Coke

9. Consumer promotions offered by which companies are best, what is Pepsi present consumer promotion?

a. Pepsi

b. coke

10. Do you feel TV advertisements by drink company’s help in more sale of drinks?

a. Yes

b. No

11. How is sale of drinks this year Vs last year in your shop?

a. Good

b. Less

c. Same

12. What is percentage of juice based soft drinks sales in your shop?

a. 30%

b. 20%

c. 10%

13.Condition of Pepsi Visi cooler?

a. Full of Pepsi drinks

b. Full of Pepsi + coke drinks

c. Pepsi drinks + other packs

14.Why do you keep other products in Pepsi cooler?

a. Electricity bill

b. No own cooler

15.What is the percentage contribution of soft drinks business in your total shop business?

_________________________

16.What are the other company soft drinks available in your shop?

a. Parle

b. Nirula

c. Maid.delmanto

d. Rc cola

17. Soft drinks are consumed by mostly?

a. Male

b. Female

c. By all people

d. Youth

18.How do you (Retailer) buy soft drinks?

Pepsi 1) cash 2) card

Coke 1) cash 2) card

19.What is the percentage of PET bottles to your total soft drinks sales?

_______

\

BIBILOGRAPHY REFERANCE

MARKETING MANAGEMENT

MANAGEMENTOFADVERTISING

PHILIP KOTLER

S.A.CHUNAWALLA

NEWS PAPERS

THE HINDU

INDIAN EXPRESS

WEBSITES

www.pepsi.com

MBA project on PEPSI

Business

study frame work

business administration

titled study

degree of master

study methodology

award of master

study objectives

business administration