PepsiCoDECLARATION
I do hear by declare that this project report A market survey on
Sale A market Products [Pepsi, promotion of PEPSICO INDIA Products
[Pepsi, 7up,Mirinda, slice, Mountain Dew, My Can, Aquafina] in
Cuttack is of my own work. It has been submitted fully or partly to
KIIT SCHOOL OFMA AGEME T for awarding project marks or any
other.
Place: Date: Signature
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PepsiCo
ACK OWLEDGEME TI 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.
My sincere gratitude goes to my Project guide Mr. Sanjay kumar
Gupta, HEAD OF SALES OF TRIPTY DRI KS PVT. LTD without his valued
guidance, encouragement, and inspiration the completion of this
project would have never been possible. I am also indebted to
Mr.Ashwini Das, TERRITORY DEVELOPMENT MANAGER, Tripty Drinks pvt
ltd
(PEPSICO) for giving me all the valuable information needed and
Mr. Manoj , for facilitating me during my project. I would also
like to express my thanks to my project guide Prof. Sashi Bhusan
Mishra of KIIT School of Management for guiding me throughout the
project.
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PepsiCo
CO TE TS1. EXECUTIVE SUMMARY 2. I TRODUCTIO ABOUT SOFT DRI K I
DUSTRY 3. COMPA Y PROFILE 4. PROMOTIO S TECH IQEUS 5. SWOT A ALYSIS
6. LIVE PROJECT WORK 7. OBJECTIVES, SCOPE A D LIMITATIO S 8. DATA A
ALYSIS 9. FI DI GS A D SUGGESTIO S 10. CO CLUSIO 11. BIBLIOGRAPHY
12. A EXURE
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PepsiCo
EXECUTIVE SUMMARYSales promotion is one of the five aspects of
promotional mix. (The other four parts of the promotional mix are
advertising, personal selling, direct marketing and
publicity/public relations.) Media and non-media Marketing
communication is employed for a pre-determined limited time to
increase consumer demand, stimulate market demand or improve
product availability. Examples: Under the crown. Refilling. Point
of Purchase displays Rebates Sales promotions can be directed at
the customer, sales staff, or distribution channel member (such as
retailers). Businesses can target sales promotions at three
different audiences: consumers, resellers and the companys own
sales force. Sales promotion acts as a competitive weapon by
providing an extra incentive for the target audience to purchase or
support one brand over another. It is particularly effective in
spurring product trial and unplanned purchases. Most marketers
believe that a given product or service has an established
perceived price or value, and they use sales promotion to change
this price-value relationship by use sales promotion change this
price-value relationship by increasing the value and /or lowering
the Price. Compared to the other components of the marketing mix(
advertising, publicity, and personal selling), sales promotion
usually operates on a shorter time line, uses a more rational
appeal, returns a tangible or real value, fosters an immediate
sale, and contributes highly to profitability. Activities,
materials, devices, and techniques used to supplement the
advertising and marketing efforts and help coordinate the
advertising with the personal selling effort. Sweepstakes are among
the bestknown sales promotion tools, but other examples include
special displays, coupons, promotional discount, contests, and gift
offers.
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PepsiCoMy subject of study is that how the company promotional
schemes stimulates the products demand and how the retailers
response over scheme, what nature of the outlets(i.e. seasonal
& non-seasonal), how they know about promotional scheme (i.e.
through SMS, salesman, CE etc), whether the outlets prefer to sell
RGB [Regular glass bottle], PET [plastic bottle], MY CAN, Aquafina
mineral water.
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PepsiCo
I TRODUCTIOABOUT SOFT DRI K I DUSTRYNon-alcoholic soft drink
beverage market can be divided into fruit drinks and soft drinks.
Soft drinks can be further divided into carbonated and
noncarbonated drinks. Cola, lemon and oranges are carbonated drinks
while mango flavor comes under non-carbonated category. The soft
drinks market till early 1990s was in the hands of domestic players
like Campa, Thumps Up, Lima etc, but on the opening of economy and
coming of MNC players, Pepsi and Coca Cola, the market has come
totally under their control. While world wide Coca Cola is the
leader in carbonated drinks market in India, it is Pepsi which
scores over Coca Cola, but this difference is fast decreasing
(courtesy huge adspending by both the players). Pepsi entered
Indian market in 1991, Coke reentered (after they were thrown out
in 1977 by the Central Government) in 1993. Pepsi has been
targeting its product towards youth and it has struck right chord
with the market and the sales have been doing well by sticking to
this youth bandwagon. Coke on the other hand struggled initially in
establishing itself in the market in a span of 7 years of its
operation in the country. It changed its CEO four times, but
finally they seem to have started understanding the pulsar of
Indian market. Soft drinks are available in glass bottles, aluminum
cans and pet bottles for home consumption. Fountains also dispense
them in disposable containers.
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PepsiCo
DIFFERE CE BETWEE GE ERAL FMCG COMPA Y A D SOFT DRI KS COMPA
Y:Though soft drinks are FMCG companies, but still there is
difference between Soft Drinks Company and other FMCG companies. So
let us first discuss what the differences between these two
are:
DIFFERE CE:The soft drinks company business is a two way
business. It means there exists a backward channel also. For
example:- The bottles that are supplied to the distributors, are to
be returned. But in case of other FMCG company, it is one way
business. The soft drinks have to be sold with chilling facility.
Without chilling one cant sale the drinks. The product chills by
the help of refrigerator or icebox etc. The soft drinks can be sold
everywhere means in every shop. For example:- The soft drinks can
be sold in a jewelers shop whereas cant sell the toothpaste or
soaps (other FMCG product) in jewelers shop. In other FMCG company
customers are brand preferred, means for purchasing this type of
goods at least the consumers has to decide what item he is going to
purchase.
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PepsiCo
COMPANY PROFILE
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PepsiCo
HISTORY OF PEPSIPEPSICO HEADQUARTERS:PepsiCo World Headquarters
is located in Purchase, New York. Edward Durreil Stone, one of
Americas foremost architects, designed the seven building
headquarters complex. Pepsi Co is a world leader in convenient
foods and beverages, with revenues of about $27 billion and over
1,43,000 employees. The building occupies 10 acres out of a 144
acre complex that includes the Donald M. Kendall Sculpture Gardens,
a world acclaimed sculpture collection in a garden setting. The
gardens were originally designed by the world famous garden
planner, Russell Page, and have been extended by Francois Goffinet.
The grounds are open to the public, and a visitors booth is in
operation during the spring and summer. HISTORY OF PEPSI: The Pepsi
Cola Company began in 1898, but it only became known as PepsiCo
when it merged with Frito Lay in 1965. PepsiCo purchased Tropicana
in 1998, and Quaker Oats in 2001. The brand was trademarked on June
16, 1903, though pharmacist Celeb Bhadham first made the drink on
August 28, 1898. Pepsi was originally intended to cure stomach
pains. In 1903, Bradham moved the bottling of Pepsi-Cola from his
drugstore into a rented warehouse. This year, Bradham sold 7968
gallons of syrup. The next year, Pepsi was sold in six ounce
bottles and sales increased to 19848 gallons. In 1905 Pepsi
received its first logo redesigned from the original design of
1898. In 1906, the logo was changed again. In 1923, PepsiCo went
bankrupt due to high sugar prices as a result of World War I,
assets ware sold and Roy C Megarel bought the Pepsi trademark.
Eight years later, the company went bankrupt again, resulting in a
reformulation of the Pepsi Cola syrup formula. CORPORATE CITIZE
SHIP: PepsiCo believes that as a corporate citizen, it has a
responsibility to contribute to the quality of life in our
communities. This philosophy is put into action through support of
social agencies, projects and programs. The scope ofKIIT SCHOOL OF
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PepsiCothis support is extensive-ranging from sponsorship of
local programs and support of employee volunteer activities, to
contributions of time, talent and funds to programs of national
impact. Each division is responsible for its own giving program.
Corporate giving is focused on giving where PepsiCo employees
volunteer. FRITO-LAY: PepsiCos snack food operations had their
start in 1932 when two separate events took place. In San Antonio,
Texas, Elmer Doolin bought the recipe for an unknown food product a
com chip- and started an entirely new industry. The product was
Fritos brand com chips, and his firm became the Frito Company. That
same year in Nashville, Tennessee, Herman W. Fay started his own
business distributing potato chips. Mr. Lay later bought the
company that supplied him with product and changed its name to H.W.
Lay Company. The Frito Company and H.W. Lay Company merged in 1961
to become Frito-Lay, Inc. Today, Frito-Lay brands account more than
half of the U.S snack chip industry. PepsiCo began its
international snack food operations in 1966. Today, with operations
in more than 40 countries, it is the leading multinational snack
chip company, accounting for more than one quarter of international
retail snack chip sales. Products are available in some 120
countries. Frito-Lay North America includes Canada and the United
States. Major Frito-lay International markets include Australia,
Brazil, Mexico, the Netherlands, South Africa, the United Kingdom
and Spain. Often Frito-Lay products are known by local names. These
names include Mattoon in Spain, Sacristans and Gamesa in Mexico,
Elma Chips in Brazil. Walkers in the United Kingdom and others. The
Company markets Frito-Lay brands on a global level, and introduces
lucts for local tastes. Major Frito-Lay products include Ruffles,
La/s and Doritos brands snack chips. Other major brands Include
Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas
tortilla chips, Rold Gold pretzels and Sun Chips multigrain snacks.
Frito-Lay also sells a variety of snack dips and cookies, nuts and
crackers.
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PepsiCo
PEPSI-COLA: Caleb Bradham, a New Bern, North Carolina druggist,
who first formulated Pepsi-Cola, founded PepsiCos beverage business
at the turn of the century. Today consumers spend about $33 billion
on Pepsi Cola beverages. Brand Pepsi and other Pepsi-Cola
products-including Diet Pepsi, Pepsi One, Mountain Dew, Slice,
Sierra Mist and Mug brands account for nearly onethird of total
soft drink sales in the United States, a consumer marker totaling
about $60 billion. Pepsi-Cola also offers a variety of
non-carbonated beverages including Aquafina bottled water, Fruit
works and All Sport. In 1992 Pepsi-Cola formed a partnership with
Thomas J. Lipton Co. Today Lipton is the biggest selling
ready-to-drink coffee through a partnership with Starbucks. In 2001
SoBe became a part of Pepsi-Cola. So Be manufactures and markets an
innovative line of beverages including fruit blends, energy drinks,
dairy-based drinks, exotic teas and other beverages with herbal
ingredient. Outside the United States, Pepsi-Cola soft drink
operations include the business of 7Up International. Pepsi-Cola
beverages are available in about 160 countries and territories.
Pepsi-Cola began selling its products internationally in 1934 with
aerations in Canada. Operations grew rapidly beginning in the
addition to brands marketed in the United States; major products
include Miranda and Pepsi Max. Pepsi-Cola North America includes
the United States and Canada. Key international markets include
Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia,
Spain, Thailand and the United Kingdom. PepsiCo Beverages
International also produces, sells and distributes Gatorade sports
drinks as well as Tropicana and other juices internationally.
Pepsi-Cola provides advertising, marketing, sales and promotional
support to Pepsi-Cola Bottlers and food service customers. This
includes some of the worlds best-loved and most-recognized
advertising. New advertising and exciting promotions keep
Pepsi-Cola brands young. The company manufactures and sells soft
drink concentrate to Pepsi-Cola bottlers. The company also provides
fountain beverage products.
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PepsiCo
GATORADE & TROPICA A: The company entered the concentrate
orange juice Tropicana which was founded in 1947 by Anthony Rossi
as a Florida fruit packaging business in 1949, registering
Tropicana as a trademark. In 1954 Rossi pioneered a pasteurization
process for orange juice. For the first time, consumers could enjoy
the fresh taste of pure not-fromconcentrate 100% Florida orange
juice in a ready-to-serve package. The juice, Tropicana Pure
Premium, became the companys flagship product. In 1957 the name of
the company was changed to Tropicana Products, headquartered in
Bradenton, Florida. The company went public in 1957, was purchased
by Beatrice Foods Co. in 1978, acquired by Kohl berg Kravis &
Roberts in 1986 and sold to The Seagram Company Ltd, in 1988.
Seagram purchased the Dole global juice in 1995. Pepsi-Cola
acquired Tropicana, including the Dole juice business, in August
1998. Today the Tropicana brand is available in 63 countries.
Principal brands in North America are Tropicana Pure Premium,
Tropicana Seasons Best, Dole juices and Tropicana Twister.
Internationally, principal brands include Tropicana Pure Premium
and Dole juices along with Fruit Vita, Looza and Copella. Tropicana
pure Premium is the third largest brand of all food products sold
in grocery stores in the United States. Gatorade sports drinks were
acquired by the Quaker Oats Company in 1983 and became a part of
PepsiCo with the merger in 2001. Gatorade is the first isotonic
sports drink. Created in 1965 by researchers at the University of
Florida for the schools football team, The Gators, Gatorade is now
the worlds leading sports drink. QUAKER FOODS: The Quaker Oats
Company was formed in 1901 when several American pioneers in oat
milling came together to incorporate. In Ravenna, Ohio, Henry D.
Seymour and William Heston had established the Quaker Mill Company
and registered the now famous trademark. Seymour wanted his product
to be a symbol of honesty, integrity and strength. The figure of a
man in Quaker clothes became the first registered trademark for
breakfast cereal and remains the hallmark for Quaker Oats
today.KIIT SCHOOL OF MANAGEMENT Page | 12
PepsiCoIn Cedar Rapids, Iowa, John Stuart and his son Robert,
and their partner, George Douglas, operated the largest cereal mill
of the time. Ferdinand Schumacher, known as The Oatmeal King, had
founded German Mills American Oatmeal Company in 1856. The first
major acquisition of the company was Aunt Jemina Mills Company in
1926, which is today the leading manufacturer of pancake mixes and
syrup. In 1986, The Quaker Oats Company acquired the Golden Grain
Company, producers of Rice-A-Roni. PepsiCo merged with The Quake
ompany r Oats Cin 2001. Its products still have the eminence of
wholesome, good-foryou food, as envisioned by the company over a
century ago.
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PepsiCo
HISTORY OF PEPSI I DIA: 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 Ltd. This joint
venture marketed and sold Lehar Pepsi until 1991 when the uses of
foreign brands are allowed. PepsiCo bought out its partners and
ended the joint venture in 1994. Other claim that firstly Pepsi was
banned from import in India in 1970 for having refused to release
the list of its ingredients and in 1993, the ban was lifted with
Pepsi arriving on the market shortly afterwards. These
controversies are a reminder of Indias sometimes acrimonious
relationship with huge multinational companies. Indeed, some argue,
PepsiCo and Coca Cola Company have been major targets in part,
because they are well-known foreign companies that draw plenty of
attention. In 2003 the Central for Science and Environment (CSE), a
nongovernmental organization in New Delhi, said aerated water
produced by soft drinks manufactures in India including
multinational giants PepsiCo and Coca Cola Company contained toxins
including lindens, DDT, malathion and chlorpyrifos pesticides that
can contribute to cancer, a breakdown of the immune system and
cause birth defects. Tasted products included Coke, Pepsi, 7Up,
Mirinda, Thumps Up, Fanta, Sprite, Limca. CSE found that the Indian
produced Pepsis soft drink products has 36 times the level of
pesticide residues permitted under European Union regulations, Coca
Colas 30 times. CSE said it had tasted 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 for above the norms permitted in the
developed world. But an Indian parliamentary committee in 2004
backed up CSEs findings and a government appointed committee is now
trying to develop the worlds first pesticide standards for soft
drinks. Coke and PepsiCo opposed the move arguing that lab tests
arent reliable enough to detect minute traces of pesticides in
complex drinks. On December 7, 2004 IndiasKIIT SCHOOL OF MANAGEMENT
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PepsiCoSupreme Court ruled that both PepsiCo and Coca Cola
Company must label all cans and bottles of respective soft drinks
with a consumer warning after tests showed unacceptable levels of
residual pesticides. Both companies continue to maintain that their
products meet all international safety standards without yet
implementing the Supreme Court ruling as of 2005, the Coca Cola
Company and PepsiCo together hold 95% market share of soft drink
sales in India. PepsiCo has also been alleged to practice water
piracy due to its role in exploitation of ground water resources
resulting in scarcity of drinking water for the natives of
Pudussery panchayat in the Palakkad district in Kerala, India.
Local residents have been pressuring the government to close down
the PepsiCo unit in the village.
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PepsiCo
MISSIO OF PEPSIOur 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.
VISIO OF PEPSI"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.
PERFORMA CE WITH PURPOSEAt 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.
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PepsiCo
MILESTO ES2008 Milestones:
PepsiCo Foundation announces two major new grants to
WaterPartners and Safe Water Network programs to provide access to
safe water and sanitation in developing countries PepsiCo Again
Named to the Dow Jones Sustainability Index PepsiCo Agrees to Buy
Bulgaria's Leading Nuts and Seeds Company PepsiCo Announces
Initiatives With the Earth Institute and H2O Africa to Drive
Sustainable Water Practices Forbes Names PepsiCo Among Its Best Big
Companies PepsiCo India Commissions First Remote Wind Turbine to
Generate Renewable, Clean Energy CRO Names PepsiCo to Top 25 100
Best Corporate Citizens 2008 PepsiCo to Buy Russian Juice Leader,
Lebedyansky Employees Lead Effort to Make Chicago Plaza First
LEED-Certified PepsiCo Headquarters Gatorade Launches Gatorade
Tiger with Comprehensive Integrated Marketing Campaign PepsiCo
Honored with 2008 Energy Star Partner of the Year Award UK Vitamin
Water Brand- V Water Acquired by PepsiCo Quaker Plant in Cedar
Rapids Closes and Reopens Facility Due to Flooding to Protect
Employees PepsiCo Foodservice and Naked Juice Expand Starbucks
Presence Gatorade Sports Science Institute Gathers World's Leading
Researchers on Protein Nutrition PepsiCo International's China
Foods Wins "China's Top Leaders 2008" Award Wall Street Journal
Article Recognizes PepsiCo for Leadership in Employment of People
with Different Abilities PepsiCo and Frito-Lay Join SmartWay in
Commitment to Reduce Greenhouse Gas Emissions PepsiCo Beats Coke in
Race to Launch New Natural Sweetener (Stevia)KIIT SCHOOL OF
MANAGEMENT Page | 17
PepsiCo
PepsiCo France Recognized as "Great Place To Work" by Institute
Survey Subway Names PepsiCo "Vendor of the Year" for Sustainability
Leadership Tazo Tea Joins Pepsi Lipton Partnership .
About Tripty Drinks Pvt.LtdM/s. Tripty Drinks (P) Limited is a
well known manufacturing organization in the state of Orissa for
manufacturing and sales of Soft Drinks since last 32 years. This
unit was incorporated its self as a manufacturing unit in the year
1968 and started its production in 1969. Since its inception the
unit is engaged in manufacturing soft drinks of different brands
taking franchisee from the brand name owner. Initially they grew by
manufacturing Coca brands of products. There after they took
franchisee of Mc Dowell and since 1991 they have been manufacturing
Pepsi brand of products. It is only bottling unit of Pepsi brand of
product. In the State of Orissa PEPSI is brought to you by the
renowned Tripty Drinks Pvt. Ltd., Jagatapur (Cuttack) best
professionally managed company promoted by the Jaipuria Group. The
promoters vast experience for the last thirty five years in
manufacturing national and world renowned brands such as Pepsi,
7up, Slice, Mirinda, Mountain Dew, etc. has helped deliver to the
consumer consistent quality comparable to the best of International
Standards. Todays fast paced life style and ever-changing DRINKS
style demand superior quality, ready to use (Added Flavour) in
convenient packaging. The PEPSI Drink meets these very demands. The
company firmly believes in modernization and up-gradation of
facilities in order to offer its customers the very best. A close
on newer and better food technologies emerging in the world and the
company is known to immediately implement the latest breakthroughs
at its modern hi-tech plant. At Tripty Drinks Pvt. Ltd. the
implicit belief is in achieving leadership status through quality
assurance and every effort is focused in this direction. The latest
state-of-the-art plant delivers the finest quality juice, adhering
to theKIIT SCHOOL OF MANAGEMENT Page | 18
PepsiComost stringent norms. Strict supervision is enforced by
diligent people at every step of the production process. The juice
products manufactured are hygienically handled and very effort is
made to retain its freshness and wholesomeness. Consistency in
taste is achieved to the expert in-house QC Professionals. By
blending in superior quality with the fine arena of business the
company looks forward to establishing leadership in near future. By
concocting a superb strategy the professionals at Tripty Drinks Pvt
Ltd have exemplified their marketing and sales capabilities to
enhance the value of PEPSI. The marketing gurus at Tripty Drinks
Pvt. Ltd. have understood the finer nuances of marketing. The
significance of the five Ps, Product, Packaging, Pricing, Place
& Promotions has been used to fine turn the strategies. The
core management team controls the entire network on all India bases
and finally monitors the movement of the product in the market
place. The daily feedback allows for prompt and swift corrective
action to tackle problems, strengthen the brand and achieve rapid
growth of all those who associate with its publicity and
advertising strategies have been designed to be in tandem with the
market needs, and this is expected to further boost the sales as
well as create a brand name to reckon with.
LOCATIO & AREA COVERED BY TRIPTY DRI KS PVT. LTD.M/s. Tripty
Drinks Pvt. Ltd. is located at Jagatpur Industrial Area, 7 km away
from Cuttack City, the old capital of the State of Orissa and heart
of business activities in the state. The factory is situated on the
bank of the river Mahanadi, the largest river in the state and in
the side of National Highway-5. The factory is also close to
railway-station and correctly located for transport of raw
materials and finished products. The factory acquires 7.6 acres of
land out of which 2.5 acres are built-up area for factorys plant
and machinery and administrative offices.
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PepsiCo
SALIE T FEATURES OF THE COMPA Y: Date of Incorporation :12.05.
1967 Commencement of Production :-16. 07. 1968 Registered Office
:Production Capacity :Godown Stock Cpacity :Total land area :Built
up area :Market covered :Jagatpur, Cuttack 754021 38 lakhs cases
per annum 1,20,000 cases 7.6 acres 2.5 acres Orissa State
DEPARTME T OF TRIPTY DRI KS PVT. LTD. The Bottling plant at
Jagatpur, Cuttack is a franchisee operated bottling operation plant
and is owned by the Jaipuria Group. Previously the Goenka owned it,
but it was brought over by the Jaipuria and many infrastructures
have been added since, not to mention the state-of-art plants with
major automation. Tripty Drinks Pvt. Ltd. does the bottling and the
marketing. At the top of the organizational hierarchy is Mr.
P.S.Kumar (CEO), bitterly known as BUM or Business Unit Manager in
the states. The major four departments functioning under him are:
HUMA RESOURCES: Mr.Deepak Pani is the GM (HR) and he looks after
all the human elements of the organization. This department deals
with the effective and efficient control and use of man power as
differently from other sources of power. The personal officer and 3
assistants help the GM (HR). SALES A D MARKETI G:
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PepsiCoMr. Sanjay kumar Gupta (H.O.S.) heads the department with
over 15 years of experience backing him up. Under him the other
supporting body are: Market Development Manager (MDM) Territory
Development Manager (TDM) Account Development Coordinates (ADC)
Customer Executives(CE) PRODUCTIO : The Production department looks
after the production, quality checking etc. It is headed by Mr.
Deepak Pani, GM (Production) and supported by Manager (Production),
Manager (Maintenance) and Manager (Quality Control). FI A CE: Mr.
P.K. Sahu (FM) and Mr. Tapan Panda (FM) department of finance. They
are engaged in preparation of day-to-day transaction and also the
preparation of various books required for the maintenance of assets
and liabilities of the company.
THE PROCESS OF MA UFACTURI G: The process of manufacturing Soft
Drinks and fruit juices under PEPSI brand is divided in to mainly
five parts such as: Water treatment. Syrup making. Bottle washing.
Filing. Crowning and coding. Testing of the product. WATER TREATME
T: Water treatment is very essential in soft drinks plant as the
nature and quality of water varies from place to place. To set
uniform and standard water the process of treatment is carried on.
The water taken from Bore well by the help of water pump and pipe
lines are collected in a storage tank where is prechlorinated by
chlorinate and then by the help of pipe lines comes to a treatment
tank called coagulator tank where this water solution of different
strength of bleaching powder, ferrous sulphate, hydrate line are
added through dosing pumpKIIT SCHOOL OF MANAGEMENT Page | 21
PepsiCoto reduce alkalinity, hardness and kill the bacteria. A
mechanical stirrer mixes the chemical and then the suspended water
settles down as sludge and clean water passes through retention
tank. From this tank, the water passes through sand filter
containing fine sand and pebbles and carbon filter contains
granular carbon and finally through water polisher, micron filter,
UV lamp to ensure clear and sanitary water for use. Further water
used in the bottle washer and boiler needs softening. For this
purpose the water from storage tank, after passing through two
filter beds containing fine sand and granular carbon happens
through a bed of Resin where it is softened. This soft water is
essential for use in Bottle washer to reduce scale formation inside
the machine. SYRUP MAKI G: For syrup making of a particular brand,
collect quantity of sugar, water activated carbon (powder) and
hyflow super cell known as filter aid are taken into a sugar
dissolving tank which is specially designed making a vacuum space
to enter steam and also fitted by a motor with agitator. Sugar
syrup called raw syrup is prepared by developing the sugar with
continuous stirring and heating by steam supplied by oil-fired
Boiler. This hot syrup with the help of a pump is filtered through
a filter press attach with a series of quality filter paper to
separate out carbonated particles. BOTTLE WASHI G: Bottle washing
is an important part in soft drink plant. The emptied durable and
returnable bottles are used and returned from market in plastic
crates are fed to bottle washing machine (Washer). The machine
double end system with circular chin to carry the bottles Caustic
soda, Tri-Sodium Phosphate, Sodium-Gluconate are added to the
caustic tank filled in with water heated by steam supplied by the
boiler. The empty bottles enter to the hot caustic tank in one end
and after being cleaned by the hot caustic solution and finally
washed with water through spray-jets fitted are discharged in other
end. Then washed bottles pass on conveyor chain against laminated
board for further inspection in the direction-filling machine.
FILLI G: Finished syrup and treated water line are connected to a
dosing pump which mixes syrup and water with the ratio of 1:5 and
syrup mixed with water entered to carbonated tank to mix with
carbon-DI-oxide gas are preserved in cylinder for use. The
cylinders are connected through CO2 manifold tank to use requisite
quantity of gas. The syrup passes through PHE, which is cooled
itself byKIIT SCHOOL OF MANAGEMENT Page | 22
PepsiCocirculation of chilled, glycol supplied chilling
compressor. To run the machine F-22 gas is used. The syrup being
chilled easily mixes with CO2 gas and enters to the filter for
bottling. The filter is fitted with filling valves and lift
cylinders. CROW I G A D CODI G: After beverage is filled in bottles
it immediately goes to the crowner where with the help of crown
crock the bottles are sealed (Crowned) to protect the carbonating,
flavor, outside contamination and spoilage till the contained
beverage is consumed. Then sealed bottles passed on the conveyor
chain are coded by a coding machine on their way to out-end. The
sealed bottles are inspected properly against inspection light
while passing through the conveyor fitted with SS chain. The empty
plastic crates passing through a conveyor enter to crate washer
machine and it is washed and moves through the conveyor where
finished products are accumulated. Then the products are kept in
plastic crates, which are durable in nature and returnable by
buyer, put on palates and sent to shipping for shipment. All the
containers in contact with the syrup are properly cleaned and
sanitized by soda bio-crb, hot water, hot caustic soda solution and
strong chorine dose.
TEST OF PRODUCTS: Finally the finished syrup during bottling is
tested in laboratory to meet the permanent and also to get standard
& quality products. To maintain the standard uniformity in the
products the sugar contains and carbonation in the filled bottles
are checked in regular interval by certified bricks-hydrometers,
refractor meters and pressure gauge. The dead intervals tested are
used to calculate pressure gauge, to know the current pressure.
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PepsiCo
PepsiCo Logo & Brand PepsiCo LogoPEPSICO PEPSICO
PepsiCo Brand1.Pepsi- The mother product. It is a carbonated
water.
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PepsiCo
Ambassador of Pepsi India
2. Slice is a line of fruit flavored soft drink
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PepsiCo
Ambassador of Slice
3. 7UP is a brand of a lemon lime flavored non-caffeinated soft
drink
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PepsiCo
4. Mirinda is a brand of soft drink available in orange and lime
flavour
Ambassador of Mirinda.
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PepsiCo
5. Mountain Dew is a caffeinated sweet citrus flavored soft
drink
6. Aquafina is the mineral water product of PepsiCo.
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PepsiCo
SALES A D MARKETI G RELATIO SHIP
Marketing plays a very important part in sales. If the marketing
department generates a potential customers list, it can be
beneficial for sales. The marketing departments goal is to bring
people to the sales team using promotional techniques. Advertising
Sales promotion Publicity Public Relations. In most large
corporations, the marketing department is structured in a similar
fashion to the sales department and the management of these teams
must coordinate efforts in order to drive profits and business
success. Driving more customers through the door gives the sales
department a better chance by ration of selling their product to
the consumer.
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PepsiCo
PROMOTIOIt involves disseminating information about a product,
product line, brand, or company. It is company. It is one of the
four Key aspects of the marketing mix.(The other three elements are
product management, pricing and distribution.) Promotion is
generally sub-divided into two parts:
Above the line Promotion:Promotion in the media (e.g. TV, radio,
newspapers, Internet and Mobile Phones) in which the advertising
agency to Place the ad.
Below the line Promotion :All other promotion. Much of this is
intended to be subtle enough that the consumer is unaware that
promotion, merchandising, direct mail, Personal selling, Public
relations, trade shows. The specification of these four variables
creates a promotional mix or promotional plan. A promotional mix
specifies how much attention to pay to each of the four
subcategories, and how much money to budget for each. A promotional
plan can have a wide range of objectives, including: sales
increases, new product acceptance, and creation of brand equity,
Positioning, competitive retaliations, or creation of a corporate
image. An example of a fully integrated, long-term, large-scale
promotion are and Pepsi Stuff.
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PepsiCo
Objective of Sale PromotionSimulating business user or household
for demand products. Improving the market performance of middle men
and sale people. To attract new customer. To increase impulse
selling. To encourage greater use by existing customers. Superior
Merchandizing. Increase stocks and push sales. Better product
knowledge (as a spin off). Better shelf-space at retails stores.
Immediate results. Improvement of Dealer response in future. To
supports the advertising Program To support the sales team drive.
To support the sales channels-trade. To accelerate the sales To
drive the people traffic to the point of sales. To stimulate the
people to make the buying decision. To influence the people to
choose a particular brand. To help the retail to move the
merchandise To help to liquidate the stocks. To help to overcome
the competition. To help to gain the market share.
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PepsiCo
Factor affecting of Sales Promotion:Internal Factors:Promotion
is accepted by top management as effective sales tools. Now a days
top level manager relies and accept that sales promotion effects
sales it will increase the sales volume. Product managers are
qualified to use sales promotion tools product manager relies the
importance of sales promotions hence they practice sales promotion
tools effectively. It is the duty product manager to increase the
sales volume and this attracts the sales promotions tools to
achieve the aimed objective.
External FactorsThere is wide spread use of branding promotional
activities are essential as they as they are more practical than
advertising. Competitor have become promotional-minded there is
cut-throat competition and the market is flooded with numerous
products hence promotional activities are essential. During the
period of inflation & recession the consumer are more deal
oriented and the promotional technique facilitate sales. The
present stage of trade demands more deals from manufacturers.
Consumer Sales Promotion:Sales promotions targeted at the
consumer are called consumer sales promotions. Consumer sales
promotions are steered toward the ultimate product users- typically
individual shoppers in the local market. Following are some of the
key techniques used in consumer-oriented sales promotions.
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PepsiCoPRICE DEALS:A consumer price deal saves the buyer money
when a product is purchased. The main typed of price deals include
discount, bonus pack deals, refunds or rebates, and coupons. Price
deals are usually intended to encourage trial use of a new product
or line extension, to recruit new buyers for a mature product, or
to convince existing customers to increase their purchases,
accelerate their use or purchase multiple units.
CO TESTS/SWEEPST AKES:The main difference between contests and
sweepstakes is that contests require entrants to perform a task or
demonstrate a skill that is judged in order to be deemed a winner,
while sweepstakes involve a random drawing or chance contest that
may or may not have an entry requirement. At one time, contests
were more commonly used as sales promotions, mostly due to legal
restrictions on gambling that many marketers feared might apply to
sweepstakes. But the use of sweepstakes as a promotional tactic has
grown dramatically in recent decades, partly because of legal
changes and partly because of their lower cost.
SPECIAL EVE TS:Events tend to attract a homogeneous audience
that is very appreciative of the sponsors. Therefore, if a product
fits well with the event and its audience, the impact of the sales
promotion will be high.
PREMIUMS:A premium is tangible compensation that is given as
incentive for performing a particular act- usually buying a
product. The premium may be given or free, or may be offered to
consumers for a significantly reduced price.
CO TI UITY PROGRAMS:Continuity programs retain brand users over
a long time period by offering ongoing motivation or incentives .
Continuity programs demand that consumers keep buying the product
in order to get the premium in the future.
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PepsiCoObjectives of Consumer Promotion & Vehicles Used
Achieve Them Consumer Promotion Objectives Vehicles Used Coupons
Generate Trial A Discount Sales i. New Products ii.Related Products
iii. Brand Switchers B Enquiries Free Samples Contests
Demonstrations Gifts Mail-in Coupons Catalogue Offers C Repurchase
On pack Coupons Mail-in Coupons D Traffic Building Special Events
Annual Sales Festivals Sales Retailer Coupons E Increased Rate of
Purchase Multipacks Special Price for twos Information on new
usages situations.
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PepsiCo
Consumer Sales Promotion TechniquesPrice deal: A temporary
reduction in the price, such as happy hour. Loyal Reward Program:
Consumers collect points, miles, or credits for purchases and
redeem them for rewards. Two famous examples are Pepsi Stiff and A
Advantage. Cents-off deal: Offers a brand at a lower price
reduction may be a percentage marked on the package. Price-pack
deal: The packaging offers a consumer a certain percentage more of
the product for the same price ( for example, 25 percent extra).
Coupons: coupons have become a standard mechanism for sales
Promotions. Loss leader: the price of a popular product is
temporarily reduced in order to stimulate other profitable sales.
Free-standing insert(FSI): A coupon booklet is inserted into the
local newspapers for delivery. On- shelf couponing: On checkout the
customer is given a coupon based on products purchased. Checkout
dispensers: On checkout the customer is given a coupon based on
products purchased. On-line couponing: Coupons are available on
line Consumers print them out and take them to. Mobile couponing:
Coupons are available on a mobile phone. Consumers show the show
the offer on a mobile phone to salesperson for redemption. Online
interactive promotion game: Consumers Play an interactive game
associated with the promoted product. See an example of the
interactive Internet Ad.KIIT SCHOOL OF MANAGEMENT Page | 35
PepsiCoRebates: Consumers are offered money back if the receipt
and barcode are mailed to the producer. Contests/sweepstakes/games:
The consumer is automatically entered into the event by purchasing
the product. Point-of-sale displays: Aisle interrupter: A sign the
juts into the aisle from the shelf. Dangler: A sign that sways when
a consumer walks by it. Dump bin: a bin full of products dumped
inside. Glorifier: A small stage that elevates a product above
other products. Wobblers: A sign that jiggles. Lipstick Board: A
board on which messages are written in crayon. Necker: A coupon
Placed on the neck of a bottle. YES unit: your extra salesperson is
a pull-out fact sheet.
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PepsiCo
Trade Sales promotion:Sales promotions targeted at retailers and
wholesale are called trade sales promotions. Trade sales promotions
target resellers- wholesalers and retailerswho carry the marketers
product. A trade sales promotion is targeted at resellers-
wholesalers and retailers- who distribute manufacturers products to
the ultimate consumers. The Objective of sales promotions aimed at
the trade is different from those directed at consumers. In
general, trade sales promotions hope to accomplish for goals:
Develop in-store merchandising support, as strong support at the
retails store level is the key to closing the loop between the
customer and the sale. Control inventory by increasing or depleting
inventory levels, thus helping to eliminate seasonal peak and
valleys. Expand or improve distribution by opening up new sales
areas (trade promotions are also sometimes used to distribute a new
size of the Product). Generate excitement about the product among
those responsible for selling it. Some of the most common forms of
trade promotions- Profiled below- include point-of- purchase
displays, trade shows, sales meeting, sales contests, push money,
deal loaders, and promotional allowances.
POI TS-OF-PURCHASE (POP) DISPLAYS:Manufacturers provide
point-of-purchase (POP) display units free to retailers in order to
promote a particular brand or ground of products. The forms of POP
displays include special racks, display cartons, banners, signs,
price cards, and mechanical product dispensers.
PUSH MO EY:Similarly, push money (PM)- also known as spiffs- is
an extra payment given to sales people for meeting a specified
sales goal.
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PepsiCoDEAL LOADERS:A deal loader is a premium given by a
manufacturer to a retailer for ordering a certain quantity of
product. Two types of deal loaders are most typical. Buying loader,
which is a gift given for making a specified order size. Display
loader, which means the display is given to the retailer after the
campaign.
TRADE DEALS.Trade deals are special price concessions
superseding, for a limited time, the normal purchasing discounts
given to the trade. Trade deals include a group of tactics having a
common theme-to encourage sellers to specially promote a product.
The marketer might receive special displays, larger-than usual
orders, superior in-store locations, or greater advertising effort.
In exchange, the retailer might receive special allowances,
discounts, goods, or money.
Objectives & Vehicles in Trade PromotionsObjectives
Inventory Building Vehicles Higher Margins. Allowance for
additional shelf & merchandizing. Promotional Support Returns
Allowance Joint Promotions Sales Contents Merchandize Allowances
Subsidy for promotional Budgets.
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PepsiCo
Trade sales promotion techniquesTrade allowance: Short term
incentive offered to induce a retailer to stock up on a product.
Dealer loader: An incentive given to induce a retailer to purchase
and display a product. Trade contest: A contest to reward retailers
that sell the most products. Point of-purchase displays: Extra
sales tools given to retailers to boost sales. Training programs :
Dealer employees are trained in selling the product. Push money:
also known as spiffs. An extra commission paid to retail employees
to push products. Trade discounts (also called functional
discounts): These are payments to distribution channel members for
performing some function.
Merits of Sales Promotions:It stimulates in the consumers &
attitudes towards the products. It creates a better incentive in
the consumers to make a purchase. It is a demand creator. It gives
direct inducement to the consumer to take immediate action. It is a
flexible. It can be used at any stage of any product introduction.
Sales promotion leads to low unit-cost.KIIT SCHOOL OF MANAGEMENT
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PepsiCoIt is an effective supports of sales. It helps the
salesmen makes his efforts more productive. The promotional tool is
the most effective to be used in increasing the sales volume.
Demerits of Sales Promotions:Sales promotions are only
supplementary devices to supplement selling efforts of others
promotional tools. Sales promotions activities are having temporary
and short life. Brand image is affected by too many sales
promotions activities consumer are of the opinions that due to the
lack of popularity and over stocking of products of a company these
sales promotional activities are conducted. Discount or rebates are
allowed by boosting the prices of the good. An immediate increase
in demands is stimulated by this it is expensive and leads to a
rise price of the products. Sales promotion increases the expenses
of the company on sales & distribution expenses. Sales
promotion increases the burden on the company men. Sales promotion
increases the paper work lengthy & complication. Sales
promotion decreases the storage capacity in the store house.
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PepsiCoSales promotion increases the maintenance cost of the
firm. Sales promotion gives the chance to the distributor to do
malpractice.
FOCUS O MARKETI G STRATEGIES OF PEPSIThe marketing strategy used
by pepsi involves the following: Focus on availability of product
in market. Focus on availability of products in outlet. Pepsi
products visible to customers. Regular market vigilance by market
developer. Distribution of product according to locality. Focus on
Monopoly outlets. Aggressive advertisement. Target core brands.
Satisfy market priorities. FOCUS O AVAILABILITY OF PRODUCT I MARKET
Pepsi works on DIKHEGA TO BIKEGA philosophy. This is the main
formula for marketing strategy of each company. So availability of
product in market is clear. For this reason , the market developer
daily comes to the market to check their product availability.
FOCUS O AVAILABILITY OF PRODUCT I OUTLET There is a difference
between availability of product in market as well as in outlet. So
pepsi wants its product to be available in EACH OUTLET in the
market. FOCUS O VISIBILITY OF PEPSI PRODUCTS I OUTLET The aim of
pepsi is that its product should be visible to the customers so it
gives VISI-COOLERS & rack to outlets. Availability of visi
coolers & rack ensure that more & more products are visible
to the customers. REGULAR MARKET VIGILA CE BY MARKET DEVELOPER To
know the position of pepsi products in the market, pepsi appoints
some executives those go to the market & check availability of
products, take care of company assets, check visi-coolers, talk to
outlet owners about any problem & take feedback about the
product. DISTRIBUTIO OF PRODUCT ACCORDI G TO LOCALITY
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PepsiCoPepsi distributes its products according to locality. Say
for example it distributes more RGB in an area where there are more
Bars & Restaurants. FOCUS O MO OPOLY OUTLETS Outlets which sale
only pepsi products are known as MONOPOLY outlets. These monopoly
outlets give more sales to the company.So company gives extra
schemes, discounts & gifts to those outlets. SALES PROMOTIO AL
SCHEME I PEPSI SOFT DRI KS REFILLI G SCHEME: For the retailer
purchase of 1case of RGB (Returnable Glass Bottle) two or three
bottles free. SCRATCH CARD: For the retailer wining prize by
scratching lucky coupon. UTC (Under The Crown) : Both the retailer
as well as the Customer will get the amount coded under the crown.
QPS (Quantity Per Sales) : This scheme is only for retailer to
motivate for high selling volume. In this scheme the retailer will
get free bottles according to the cases of PET, RGB, CAN and
AQUAFINA purchase. KEY ACCOU T: In this scheme the company ties up
with mall, restaurant, big retail shop and hotel on the basis of
annual sales volume. The company may tie up at Rs.10 or Rs.15 or
Rs.20 or Rs.25 per case of selling. CARD ACCOU T: Under this scheme
the company ties up with betel shop, small shopkeeper, retail
outlet at Rs.3 orRs.4 or Rs.5 per case of selling. DISPLAY SCHEME:
Under this scheme company gives gift to the retailer who display
the PEPSI product in the Visi-cooler very well.
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PepsiCo
PRODUCTS AVAILABLE I CUTTACK MARKETThe following products of
PEPSI are available in Cuttack market:PRODUCTSPEPSI
In ml.200 300 600 1500 2000 200 300 600 1500 2000
7 up
MIRINDA(0)
200 300 600 1500 2000 200 300 600 1500 2000
MIRINDA(l)
SLICE MOUNTAIN DEW
250 200 2000 1000 300 600
AQUAFINA EVERVESS SODA
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PepsiCo
DISTRIBUTIO CHA
EL OF PEPSI SOFT DRI KS
Tripry Drinks Pvt. Ltd
Distributor
Retailer
Customers
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PepsiCo
SWOT Analysis of PepsiCoSTRE GTH OF PEPSICO:The 1st strength of
this company is its brand. 2nd strength is our company CEO Indra
Noyee, who knows better norms of India. Huge market coverage,
company existence not only in urban area but also in the rural
area. Large number of product line to satisfy consumer. Variety of
scheme for retailer throughout the year. So that retailer will earn
huge profit and also get satisfaction after selling PepsiCo
product. Company also gives time to time schemes for the consumer.
So that, final consumer interest for repurchase & enjoy the
benefit.
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PepsiCo
WEAK ESS OF PEPSICO:In distribution channel distributor is the
additional person which is not responsible for the company, because
there is no direct link between company and the retailer.
Inadequate supply during peak season.
Sales person also not feel that they are working for company,
they think only for the distributor. There is no burden on the
salesperson about timing for the entry & exit from the market.
Salespersons are illiterate so paperwork is very poor. And also
workload of C.E increases because C.E has to give time to manage
paperwork. There is no any clear- cut rule for provide Vi-Si Cooler
to the retailer, related to time management. Pepsi the brand is not
appreciated by the BBSR consumer, which is the mother product.
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PepsiCo
OPPORTU ITIES OF PEPSICOPepsi could develop new products or
product designing of Pepsi brand for the Cuttack market.
Competitors have poor products such as Fanta, Limca, Sprite, Coco
cola can. Profit margins will be good, if company will follow
aggressive marketing strategy. End-users respond to new ideas, such
as launch of other flavors of slice. Pepsi have a great chance to
extend to rural area. New Specialist applications, such as
Sponsorship, trade fair, free sample. Marketing done directly from
the company i.e no middle men is required between company &
retailer.
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PepsiCo
THREATS OF PEPSICOExisting core business distribution risk.
Market demand very seasonal. Introduction of LMN by Parle-Agro Coke
cracking some good outlets and converting them to Coke MONOPOLY
outlets. Retention of key staff critical. Retailer distract from
core business, such as retailer demand to keep slice only and not
for Pepsi. Legislation could impact; mean local taxation policy and
business policy of state & central government. Environmental
effects would favor larger competitors, such as Thums up has highly
demanded but the profit is low but retailer is not interested to
keep our product.
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PepsiCo
LIVE PROJECT I CUTTACK MARKETDuring My Two months project , I
worked in the cuttack market with the following team:1)Mr. Sanjay
Kumar Gupta (Head of Sales) 2) Mr. Ashwini Das ( Territory
Development Manager) 3)Mr. P Swain (Account Development
Co-ordinate) 4) Mr. Asim Bhowmik (Customer Executive) 5) Lullu
Behera (Sales Person) 6) Muna Moharana (Sales Person) 7) Chotu
(Sales Person) METHODOLOGY USED FOR MY WORK: First, I travelled
with the company vehicle to know the area covered by the
distributor. After knowing the area properly, I tried to touch each
and every PEPSI outlet everyday so that pepsi monopoly counters get
adequate stock during the peak season.
During the period, I made sure that schemes are given properly
to the retailers which included educating retailers of the benefits
of the scheme and in the process increase the sales. I did
PLANOGRAM for Visi Coolers and ensured that atleast 4 Planograms
are done per day.
Then I worked on to make pepsi products available in each and
every outlet of my area. It was during this period when I cracked
Coke outlets. I also developed new counters for pepsi during my
period of work. During the period , I also prepared my DAILY SALES
REPORT.
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PepsiCo
OBJECTIVE OF THE STUDYThe objective of my project study is :To
determine the market share of various PEPSI products in Cuttack. To
determine the number of MONOPOLY PEPSI outlets in Cuttack market.
To determine the competitors position in the market. To determine
the annual sales volume of Pepsi products. To determine the
availability of Visi-cooler in the outlets. Ensuring the visibility
of the product. Ensuring availability of the products in the
market. Analyzing the effect of the scheme.
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PepsiCo
SCOPE OF THE STUDYGeographical scope of the study is Cuttack
city only. The data I have collected is from 168 different shops in
different areas of the city. The study is mainly concerned with the
PEPSI Company in finding out the position of the PEPSI Company in
Cuttack market in present market scenario. In the duration of study
and project period, I observed that the market response of PepsiCo
Product is in good position, but sales volume is not at par. The
sales policy of our company is affected due to competitor Market
strategy for sale. I prepared questions on sales promotions to know
the response of current promotion packs given by company to
retailers in the market. Through this project, I came to know about
that which type of promotional scheme the outlets wants. I can
easily know about how the sale promotion affects the Annual Sales
volume. We get the percentage of exclusive and mixed outlets of
PepsiCo India Products. We get the percentage number of outlets in
nature( i.e. Seasonal vs. Non seasonal). We get the reaction of the
outlets owner how they react with the promotional scheme. Hence we
can say that, a well planed & future oriented sales promotion
will give a good sales volume. The finding recognition based on the
analysis of the retail outlets opinion, which is collected through
the personal interview and questionnaire.
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PepsiCo
LIMITATIO OF THE STUDYThe major limitation of the study was that
in depth study in the subject could not be done into time
consideration as well as underlined in nature. The other
limitations are: The company does not declare all the data and
internal data are kept confidential. Non co-operation and biasness
of some shopkeepers make it different to analysis the report. The
study was small in size to gather accurate information about the
project. My project done in Cuttack may not present the actual
figure of the whole India. Incomes considered are doubtful.
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PepsiCoCUTTACK DISTRIBUTORS PROFILEThere are a total of 12
Distributors operating in Cuttack. The details of the distributor
under which I worked is as follows:
ame: J.J. E TERPRISES Address of godown: Shree Vihar Colony,
Near Biju Pattanaik Chaka, Cuttack. Staff employed: 12 Manager- 1
Sales Person- 3 Drivers- 3 Officials- 3 Labours-2 Vehicles: 3 (1
Ace & 2 Mahindra auto) Area Covered:Shree Vihar Colony, Biju
Pattanaik Chaka, T.V Road, Hindolkothi, Matha Sahi, Gora Kabar,
Panchamukhi Chaka, Barabati Stadium, Gadachandi, Gadagadia, Mission
Road, Cantonment Road ,Manisahu Chaka, Ymca Chaka, uapatna,
Matamath, Buxi Bazar, Pension Lane, Patapole, Bepari Sahi,
Kesharpur, Rausapatna, Seminary Chaka, Haripur, Dolamundai
Chaka.
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PepsiCo
Schemes Given During the PeriodPERIOD 02/04/09-15/04/09 16/04/09
24/04/09 20/04/09 23/04/09 SCHEMES GIVEN 2 Bottles AQUAFINA free on
200ml/300ml/2L PEPSI case. 2RGB Free on 200ml/300ml PEPSI, MIRINDA
& DEW case. 2 RGB Free on 200ml PEPSI, MIRINDA & DEW case.
1RGB Free on 200ml 7UP case. 2RGB Free on 300ml PEPSI, MIRINDA
& DEW case. Three 600ml pet free on 1 case of 600ml PET (all
flavors). Three 600ml pet free on 1 case of 600ml PET (all
flavors). 2RGB free on 200ml/300ml PEPSI. 1 AQUAFINA free on 200ml
RGB case. SIX 600ml pet free on 600ml & 2LITRE case( all
flavors). SIX 600ml pet free on 600ml & 2LITRE case( all
flavors).
25/04/09 30/04/09
07/05/09 09/05/09
09/05/09 19/05/09
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PepsiCo
COOLER I STALLATIO PROCESSCompany set the coolers in a
systematic way. The way is following :1. To know where the cooler
is sitiing inside the outlet or outside the outlet. 2. If outside,
then the night cover is set at the place where the cooler is set.
3. After installation of the guarder then the cooler is set in the
guarder. 4. When cooler has been set in guarder then the trays are
set inside the cooler. 5. CHARGI G :-When the cooler is properly
installed in the outlet, it is then charged by PEPSI products
according to the brand order. BE EFITS OF I STALLI G A COOLER
OUTSIDE THE OUTLET 1. Larger income More consumers will buy
beverages from outlet. 2. Increase in selling space. 3. Setting a
cooler outside arouses more consumer interest and sales increases
through good beverage exposure. 4. When installed outside, it
increases the number of consumers visiting the outlet. 5. Easier
access to chilled products triggers the consumer purchase impulse.
6. Effective use of outlet space thus saves warehouse area. 7.
Attractive and eyecatching form of beverage presentation. 8.
Complimentary service for installation and maintenance. BE EFITS OF
SETTI G A COOLER I SIDE THE OUTLET 1. Larger Income :- More
consumers will buy beverages from outlet. 2. Easier access to
chilled products triggers the consumers purchasing impulse. 3.
Chilled beverages taste better and hold greater value for
consumers. 4. Best utilisation of outlet space thereby saving
warehouse area. 5. Complimentary service for installation and
maintenance. BE EFITS OF I STALLI G A VISICOOLER 1. Eye catching
display of products. 2. Consumers easier access to the products. 3.
Increase in sales as when consumer sees the product, he becomes
tempted to buy the product. 4. It fulfills the consumers want &
willingness.KIIT SCHOOL OF MANAGEMENT Page | 55
PepsiCo5. Easier access of stocks by the sales person. BE EFITS
OF SETI G UP ME U BOARDS WITH COMBO Transaction value increases (
meal plus beverages) and thereby trade turnover and income are
raised. Attractive offer for the consumers. Combo visualization
shortens consumers decision making time. Seeing saving
communication, consumers perceive combo as promotion and thus but
more enthusiastically. Combo price is prominently visible to the
consumer.
1. 2. 3. 4. 5.
BE EFITS OF SETTI G A HA GI G RACK 1. Easier access to the
products for the consumers. 2. Easier product merchandising. 3.
Products are placed in order and are visible properly. 4. Selling
space increases by use of small outlet space. 5. Hanging rack on
the way catch sight of consumers arousing in them the impulse to
purchase.
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PepsiCo
PLA OGRAMAfter the Visi-Cooler is set inside the outlet, the
next step is Charging the cooler i.e putting all pepsi products
that is available at the outlet into the Visi cooler. After
charging is done, Planogram should be done at the outlets i.e there
is a order in which pepsi products should be kept. The planogram is
different for different sizes of Visi cooler i.e the planogram for
a 165 litre Visi is different from the planogram of 220 litres. The
Pepsi products should be cleaned with a neat cloth and then they
should be kept inside the Visi. The Visi should be cleaned with a
neat cloth as well.
PURITY OF VISI-COOLERThe Visi is said to be pure only when Pepsi
products are loaded inside it. If any product other than Pepsi
product is put inside the Visi-cooler, then the Visi is said to be
impure. All precautions should be taken to ensure that the Visi is
kept pure
EXCLUSIVE COKE /MIX COU TERS WHERE I MADE PEPSI AVAILABLE NAME
1)RENDEZVOUS 2)SIBANI STORE 3)TULSI STORE 4)PURNIMA STORE
5)PURUSHOTTAM LASSI 6)BARAHI COMMUNICATION 7)DAILY NEEDS 8)MAHIMA
VARIETY STORE 9)SHANKAR BETEL SHOP 10)MAMA BANGLES 11)CHANDAN BETEL
SHOP 12)GANESH STORE ADDRESS MISSION ROAD BEPARI SAHI MERIA BAZAR
MERIA BAZAR MERIA BAZAR KESHARPUR MERIA BAZAR HARIPUR HARIPUR
HARIPUR HARIPUR HARIPURPage | 57
KIIT SCHOOL OF MANAGEMENT
PepsiCo13)TUTU BETEL SHOP 14)MAA MANGALA STORE 15)SWAPNA
COMMUNICATION 16)DAS VARIETY STORE 17)FANCY STORE 18)NEEDS HARIPUR
HARIPUR PITHAPUR PITHAPUR PITHAPUR BUXI BAZAR
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PepsiCo
DATA A ALYSISIn order to know the market share of Pepsi, survey
work was concluded in the month of May, 2009.The functioning of 320
outlets in Cuttack was examined and the result after interception
is revealed later in this study. I have personally visited to
the168 different outlets in Cuttack city and collected the data
through questionnaire and direct interviewing the small
entrepreneurs. My data was regarding the selling of the two main
brand in India that is Pepsi-cola limited and coca cola limited and
the data are collected and analysis for the purpose of making the
study complete. After assimilating, recording, classifying,
analyzing, and inter trapping and finding, final conclusion has
been drawn. It is concluded that: the demand of Pepsi is less than
compared to the thums-up the demand of Slice is more than Maza. But
in case of Sprite, it is more demanded than 7up. So in order to
increase the growth of market share and sales, Taste and
preferences of the consumer are to be highlighted and to be taken
in to prior concentration. Hence in order to know the most
preferred flavor according the stake a survey work is organized.
For a successful survey work certain points are to be taken into
consideration. It is of immense importance that nobody spares his
valuable time for the survey purpose. For this, time factor is to
be kept in mind and accordingly the questionnaire prepared. Since
the research was conducted in Cuttack City being the busiest city,
I had to plan the survey in such a way so that less time was
required by a respondent to complete or fill up the questionnaire.
This analysis is divided in to two sub-parts:Analysis of data
collected through questionnaire. Analysis based on different shop
in different areas.KIIT SCHOOL OF MANAGEMENT Page | 59
PepsiCoA Total of 168 outlets were surveyed with the following
questionnaire: 1) Status of outlet 2) Type of outlet 3) Annual
volume of the outlets 4) Visi availability of outlets 5) Total
filled RGB in the outlet 6) Total pet available at the outlet 7)
Total water cases available at the outlet 8) Best distributor
service provided 9) Best scheme given 10) Best company people visit
11) Availability of GLOW signboard 12) Promotional scheme that is
appreciated by retailer.
The findings of the survey carried out are as follows:1) Out of
168 outlets surveyed, it was found that 34 outlets were exclusive
found PEPSI outlets, 69 were coke exclusive and rest 65 were mix
counters. PCI 34 CCX MIX TOTAL 69 65 168
STATUS39% 20%PCI CCX
41%
MIX
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PepsiCo
2) It was found that 130 outlets were Convenience store, 29
outlets were Eatery and rest 9 are Grocery stores. 130 Convenience
Eatery 29 Grocery 9 Total 168
OUTLET TYPE5% 17%CONVENIENCE EATERY
78%
GROCERY
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PepsiCo3) Total annual volume of outlets was found to be 48210
cases, out of which 17440 were pepsi cases and 30770 were coke
cases. 17440 PCI CCX 30770 TOTAL 48210
ANNUAL VOLUME
36%PCI
64%
CCX
4) Out of 168 outlets, 57 outlets were found to be having Pepsi
Visi, 92 outlets were having Coke Visi and rest 39 outlets were
Having their Own cooling apparatus. PCI 57 CCX 92 OWN 39 TOTAL
168
VISI AVAILABILITY21% 30%PCI CCX
49%
OWN
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PepsiCo5) Total PCI RGB filled was found to be 259 cases whereas
total CCX RGB filled was found to be 469. 259 PCI CCX 469
RGB (FILLED)36% 64%PCI CCX
6) It was found that a total of 190 pet of PCI and 162 pet of
CCX were available at the outlets during the survey. 190 PCI CCX
162 TOTAL 352
PET AVAILABILITY
46% 54%PCI CCX
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PepsiCo7) It was found that a total of 45 cases of AQUAFINA, 55
cases of KINLEY AND 360 cases of other mineral water was found. 45
PCI CCX 55 OTHER 360 TOTAL 460
WATER10%
12%PCI CCX
78%
OTHER
8) The findings of best distributor service provided are as
follows:
BEST DISTRIBUTOR SERVICE
42% 58%PCI CCX
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PepsiCo
9) The findings of best scheme provided are as follows:
BEST SCHEME20%PCI
80%
CCX
10) The findings of best company people visit are as
follows:
BEST COMPANY PEOPLE VISIT
44% 56%PCI CCX
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PepsiCo
11) The availability of glow signboard was found to be:
GLOW SIGNBOARD AVAILABILITY
38% 62%PCI CCX
12) Promotional scheme that is appreciated by retailer:PROMOTI
AL SCHEME REFILLING SCRATCH CARD SCHEME UTC QPS DISPLAY GIFTS
DISCOUNT/CR KEY & CARD A/C APPRECIATE BY RETAILER 38 6 51 12 16
5 15 25
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PepsiCoPROMOTION APPRECIATED BY RETAILERREFILLING SCRATCH CARD
SCHEME UTC QPS DISPLAY GIFTS DISCOUNT / CREDIT KEY & CARD A/C 0
10 20 30 40 50 60
PROMOTION APPRECIATED BY RETAILER
After the survey, I came to know that the retailer appreciates
mostly two type of promotional scheme (i.e. UTC & Refilling)
because these two schemes are received by outlet owner on the spot
of purchases from the sales persons.
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PepsiCoFI DI GS
1. Getting customers is not a difficult task but to retain these
customers is a difficult task. 2. The behavior of sales people
highly matter for increase the sales. 3. Short term sales increases
required to reduce inventory promotion that give large immediate
benefits such as money off or bonus pack. 4. Sales promotion
schemes like price-off or free gift induce customers to by a new
brand. 5. Trade promotions are designed to gain distribution and
shelf space. 6. Sales promotions give the consumer an incentive to
buy. 7. Sales promotions can be measured objectively to judge their
success. 8. The survey resulted that about 90% of the total outlets
are nonseasonal outlets, which infer that they sales product
throughout the year. On the other side about 10% of the total
outlets owners are sales our product on the season only. 9. Out of
168 outlets,34 outlets are exclusive [ who kept Pepsi brand only ]
of Pepsi, out of total outlets 65 are of mixed counter [ who kept
Pepsi & Coca-cola both] & the rest outlets (69) are of only
Coca-cola Counter. 10. The outlets are mostly focusing on glass
bottle (i.e. RGB) after that they focus on plastic bottles (i.e.
PET), then CAN, Mineral Water & Soda. 11. The retailer
appreciates mostly two type of promotional scheme (i.e. UTC &
refilling) because these two schemes, outlet owner gets on the spot
of purchase form the sales persons. 12. Annual agreement between
the outlet owner with the company so as to sell exclusive Pepsi or
coca-cola. Here I find maximum of outlets making agreement with the
Coke Company.
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PepsiCo
Suggestion1. Proper knowledge should be given to the salesman
about the promotional Scheme so that they can better understand the
importance of promotional activities. 2. There should be proper
regulation on time management for the distributor so, that
distributor will open agency on time. 3. The distribution should be
a within a proper interval, so that there is no shortage of
products in the market. 4. There should be a regular meeting
between distributor & company about the implementation of sales
promotion. 5. Company should make open interactions for the
distributor so that they feel that they are the part of
organization & they will never hesitate to give promotional
scheme to the outlets. 6. There should be assessment classes for
the distributor so that paper work should be up-to-date &
proper maintenance of accounting, because in many outlets I found
that schemes is pending. 7. There should be dress code for the
sales man & the driver. 8. There should be time schedule for
the meeting between top level management & C.E. 9. There should
be a location for a store house of ViSi Cooler in Cuttack which is
not controlled by any distributor but directly controlled by
company. 10. Fast repairing of VISI Cooler will gain the faith
& goodwill of the retailer. 11. Company should give the
facility to provide VISI Cooler outside the store so that the
display will easily do and it is helpful for those stores where the
space is a constraint.KIIT SCHOOL OF MANAGEMENT Page | 69
PepsiCo12. Company should provide racks to keep Pet bottles for
display. 13. Retailers feedback should be taken about the consumer
behavior about various brand. 14. The company should take some CSR(
corporate social responsibility) program like providing road side
dustbin which carry PEPSI logo that will increase the brand
awareness. 15. . Effort should be given to break CCX monopoly to
mix counter and to promote mix counter to PEPSI monopoly
counters.
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PepsiCo
CO CLUSIOThe aim of my project was to learn and observe about
sales promotional strategy of PEPSI Company. I selected this
organization because I have a deep interest to know various sales
promotional strategies in FMCG Sector. My observation was that the
demand of Pepsi-Cola is comparatively less than the demand of Thums
Up .After giving through; it is revealed that the market share of
Sprite is higher than 7Up. PEPSI should take immediate step to
improve the standard of sales and services. Slice has a high demand
in market in comparison to Maaza but supply of Slice is very low in
peak season that should be taken care of. It revealed that PEPSI
gives better scheme in Cuttack City as well as all over world.
PEPSI has a wide product line in comparison to Coca-Cola Ltd. M.S.
Dhoni is the brand ambassador of PepsiCo Ltd and Pepsi has targeted
to young generation. So far this aim my findings are like this1)
Out of all the outlets surveyed, it was found that, 41% of the
outlets are coke exclusive, 20% of the outlets are Pepsi exclusive
whereas 39% of the outlets are Mix counters. So it can be inferred
that more number of outlets are having agreement with Coke Company.
2) It was found that 49% of the outlets were having Coke Visi,
whereas only 30% of the outlets were having Pepsi Visi and rest 21%
outlets were using their own chilling equipment. So we can say that
Coke products are more visible at the counters. 21% of the outlets
were having their own chilling equipment, so pepsi should target
these outlets by providing them with a pepsi visi and as most of
these are mix counters, pepsi could turn them into a Pepsi monopoly
counter. This would help in increasing sales. 3) It was found that
total filled RGB of coke products was 64% whereas it was only 34%
in case of pepsi products. This figure could be increased by
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PepsiCoproper distribution of pepsi products so that adequate
stock is maintained at the outlets. 4) The availability of pepsi
pets at the outlet was found to be 54% at the time of survey
whereas coke pet availability was found to be 46%. The reason for
this is the heavy promotional scheme given on pepsi products. This
shows that retailers always look for schemes. 5) The mineral water
availability of both pepsi and coke stand at pepsi-10% & coke
-12%. Rest 78% is accounted by local players. 6) In the best scheme
category , pepsi is leading with 80% outlet revealing that the
scheme provided by pepsi is the best. So pepsi has a clear edge
over coke. 7) When we consider the best distributor service, then
we can say that the retailers are satisfied with our service, but
their suggestion is to adopt better sales promotional steps and
develop the quality so that Pepsi can be the market leader. 8) If
we consider the scheme that is appreciated by retailer, then we
find that retailer appreciates two types of schemes i.e Under the
Crown (UTC) & Refilling because in these two schemes are
received by retailers at the point of purchase.
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PepsiCo
BIBLIOGRAPHYKotler, Philip; Keller, Kevin Lane; Koshy, Abraham;
Jha, Mithileshwar; Marketing Management, ew Delhi, Dorling
Kindersley (India) Pvt. Ltd., 2007. Kothari, C.R., Research
Methodology, ew Delhi, ew Age International (P) Limited., 2008.
Websites -
www.pepsi.com www.pepsiindia.com www.pepsico.com
www.pepsigallary.com www.pepsiproductfact.com
www.aquafina.comMAGAZI ES, JOUR ALS & EWS PAPERS
1. Business world. 2. Business Standards. 3. Economics
Times.
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PepsiCo
ANNEXURE
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PepsiCo
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PepsiCo
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PepsiCo
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