A Project Report On “Feasibility Study on Scope of Institutional Marketing and Distribution of Soft Drinks for Aurangabad City” For PepsiCo India Ltd,Aurangabad. By Mr. Ramesh S. Sirsath Roll No. M-9 Deogiri Institute of Management Studies, AURANGABAD Submitted to Dr. Babasaheb Ambedkar Marathwada University, Aurangabad Towards Partial Fulfillment of 1
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A
Project Report
On
“Feasibility Study on Scope of Institutional Marketing and Distribution
of Soft Drinks for Aurangabad City”
For
PepsiCo India Ltd,Aurangabad.
By
Mr. Ramesh S. SirsathRoll No. M-9
Deogiri Institute of Management Studies, AURANGABAD
Submitted to
Dr. Babasaheb Ambedkar Marathwada University, Aurangabad
Towards Partial Fulfillment ofMaster’s Degree in Business Administration.
2011-2012
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Declaration
This is to certify that, In plant Training Report is genuine which has
been prepared by undersigned after successful completion of 5 weeks
training in “PepsiCo India Ltd, Aurangabad.” which is partial
fulfillment of Master of Business Administration.
It is not copied or used any where academic purpose.
Mr. Ramesh S. Sirsath MBA (4th SEM)
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ACKNOWLEDGEMENT
At the out set I started off with my project, I was bewildered and very much ensured of
the plans which PEPSI had laid out. The organization had preplanned all the programs;
from the inspection to he completion which was a long journey. During this period if
there has been a thing that kept me moving was the phenomenal support and warm co-
operation that I received from the whole PEPSI team.
I am very indebted to Mr. Akshay Kulkarni (TDM), PEPSI Aurangabad for giving me the
opportunity to undergo my summer project with them and also being my project guide.
Inspire of being extensively busy, he was always ready to spare time for me. A
considerate and dynamic guide as he was had given us full freedom and equal amount of
responsibility, which made me feel that my opinion really mattered.
I am also thankful to Mr. Rameshwar Jadhav (Sales executive), Mr. Aslam (Customer
Executive) Pepsi without whose co-operation and support my project would have been
incomplete.
On home grounds, special thanks are due to our HOD Mr. Harshali Deshmukh and
coordinator Prof. Medha Kulkarni for there support and thorough help for the completion
of my project.
Last but not the least, I am thankful to my parents, without whose support I would not
have been able to complete my summer project.
Working with Pepsi for two months has been a wonderful learning experience and one
that is sure to help me in my career.
Mr. Ramesh S. Sirsath
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INDEX
Chapter No
Title Page No
1 Executive Summary 1
2 Introduction 3
3 Company Profile 10
4 Research Methodology 20
5 Data Analysis & Interpretation 23
6 Findings 23
7 Recommendations 45
8 Questionnaire 48
9 Bibliography 53
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EXECUTIVE SUMMARY
Need of study: To find out scope for the organization to enter the industrial
canteens.
To find out the loopholes in the distribution process in
specific areas of Cidco region in Aurangabad.
Objectives:
To study the availability and consumption of Pepsi in the
industrial canteens.
To find out the scope of penetrating in the areas of
unavailability in the industrial belt in and around Aurangabad.
To find out the reasons for low sales of Pepsi products in the
retail outlets in the area of Cidco.
To find out quick & efficient means of transportation for the
supply Pepsi to the areas of unavailability.
Research Methodology:
Research in common parlance refers to a search for knowledge. One can also define
research as scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation.
Sample Size: The sample size was determined to be 20 each from
the two industrial regions. The samples were selected where in the
canteen facility was the sample size for the second survey of the
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retail outlets in the area of Cidco was selected to be 25. This
sample was selected randomly in the area.
Questionnaire: The questionnaires were designed so as to extract
complete information required. The answers thus derived gave an
in depth information about the status of Pepsi products in the
industrial canteens.
The second questionnaire was prepared for the retail outlets
Provide the information about the available stock, the frequency
of supply to the outlets and the sale of the same. The information
thus gathered through this questionnaire helped to device new
transportation means so that the supply was regular and thus
increase the sales.
Analysis of data:
The analysis was done through clustering the data. The data then was presented in the
form of pie charts & bar diagrams so as to provide a clear picture of the available
information. The analysis thus was done both diagrammatically & verbally to get a clear
view.
Brief about the project:
The project was done for PepsiCo India ltd; Aurangabad. The project was completed in
two parts. The first being the study about the availability of soft drinks in the industrial
canteens & the consumption pattern. The survey also studied the frequency of buying the
soft drinks from the dealer. The main objective being to find whether there was any scope
for the company to expand its business in this non traditional channel.
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The second survey carried out was to know the loopholes in the distribution network in
the area of Cidco in Aurangabad. It also studied the options that were present for efficient
transportation for the company to increase its constantly falling business.
Limitations:
The time distributed for each of the phase of survey was limited,
which did not give time for in depth research.
The project was in the area of Soft drinks which sells the most in the
summer seasons and the project was conducted in the rainy season
which posed a hindrance in the research.
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INTRODUCTION
Marketing Channels & Value Networks:
Most producers do not sell their goods directly to the final users; between them stands a
set of intermediaries performing a variety of functions. These intermediaries constitute a
marketing Channel (also called a trade channel or distribution channel). Formally
marketing channels are sets of interdependent organizations involved in the process of
marketing a product or service available for use or consumption. They are the set of
pathways a product or service follows after production, culminating in purchase and use
by the final end user.
Conventional distribution channel:
A conventional marketing channel comprises an independent producer,
Wholesaler(s), and retailer(s).Each is a separate business seeking to maximize it’s
DistributionChannel
ConventionalChannel
Non – ConventionalChannel
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own profits, even if this goal reduces profit for the system as a whole. No channel
member has complete or substantial control over other members.
The hierarchy in the conventional marketing channel is as follows:
0 – level 1 – level 2 – level 3 - level
Non – conventional distribution channel:
Sweeping changes in the structure of distribution channels are having a dramatic impact
on the business model and go to market strategies of produce supplier.
Gone are the days where a shipper could execute a single “one size fits all” strategy that
aligned with the business models of largely homogenous traditional customers.
Non traditional channel partners are professionals who specialize in focus their practices
on retail sales.
Manufacturer
Consumer
Manufacturer
Consumer
Retailer
Manufacturer
Consumer
Retailer
Wholesaler
Manufacturer
Wholesaler
Jobber
Retailer
Consumer
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They are offering goods and services from a location or in format that differs from what
the franchise system typically does.
Why engage in non conventional distribution channel?
Brand awareness: Non conventional outlets in high visibility locations can
significantly increase brand’s public awareness.
Untouched market: Non conventional outlets may allow a franchisor an
opportunity to reach new customer who otherwise might be untouched.
Market expansion: It provides the franchisees, distributors &other middlemen in
the chain of distribution an opportunity to expand there market .
Market saturation: Non conventional distribution channel gives the marketer a
chance to sustain in the market with his products though the conventional areas
are in the verge of saturation.
Low cost of operating: Non conventional outlets may offer lower operating costs
and may be less susceptible to value pricing demands thus allowing margins.
Speed: Non conventional outlets often open up faster than traditional outlets.
Non conventional channel of distribution includes following channels:
Education: School and college canteens
Transportation :Airlines, Airport stalls, Bus stands and Railway stations
Entertainment: Theaters, amusement parks, clubs, tourist spots and
Multiplexes
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Canteens: Institutions like Offices, Hospitals and Caterers.
Petrol pumps: Stores and Food courts
Hotels and Restaurants
Food services: Mobile Vending, hawkers, juice centers, cybercafé and
wine shops.
How a distributor increases efficiency?
(a) Number of contacts M X C = 3 X 3 = 9
(b) Number of contacts M + C = 6
M = Manufacturer C = Consumer D = Distributor
M C
M C
M C
D
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M
M
C
C
M C
Soft drinks can trace their history back to the mineral water found in springs.
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 were 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.
Joseph Priestley:
In 1767, the first drinkable man-made glass of carbonated water was created by
Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern
Bergman invented a generating apparatus that made carbonated water from chalk by the
use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced
in large amounts.
John Mathews:
In 1810, the first United States patent was issued for the "means of mass manufacture of
imitation mineral waters" to Simons and Rundell of Charleston, South Carolina.
However, carbonated beverages did not achieve great popularity in America until 1832,
when John Mathews invented his apparatus for the making carbonated water. John
Mathews then mass-manufactured his apparatus for sale to soda fountain owners.
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Health properties of mineral water:
The drinking of either natural or artificial mineral water was considered a healthy
practice. The American pharmacists selling mineral waters began to add medicinal and
flavorful herbs to unflavored mineral water. They used birch bark, dandelion,
sarsaparilla, and fruit extracts. Some historians consider that the first flavored carbonated
soft drink was that made in 1807 by Doctor Philip Syng Physick of Philadelphia. Early
American pharmacies with soda fountains became a popular part of culture. The
customers soon wanted to take their "health" drinks home with them and a soft drink
bottling industry grew from consumer demand.
The Soft Drink Bottling Industry:
Over 1,500 U.S. patents were filed for either 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.
Automatic Production of Glass Bottles
In 1899, the first patent was issued for a glass-blowing machine for the automatic
production of glass bottles. Earlier glass bottles had all been hand-blown. Four years
later, the new bottle-blowing machine was in operation. It was first operated by the
inventor, Michael Owens, an employee of Libby Glass Company. Within a few years,
glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.
Hom-Paks and Vending Machines:
During the 1920s, the first "Hom-Paks" were invented. "Hom-Paks" are the familiar six-
pack beverage carrying cartons made from cardboard. Automatic Vending machines also
began to appear in the 1920s. The soft drink had become an American mainstay.
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COMPANY PROFILE
PepsiCo is a world leader in convenient foods and beverages, with 2009 revenues of
more than $29 billion and 153,000 employees. The company consists of Frito-Lay
North America, PepsiCo Beverages North America, PepsiCo International and
Quaker Foods North America. PepsiCo brands are available in nearly 200 countries
and territories and generate sales at the retail level of about $78 billion.
Many of PepsiCo's brand names are more than 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company, including Gatorade, in 2001.
PepsiCo offers product choices to meet a broad variety of needs and preference -- from
fun-for-you items to product choices that contribute to healthier lifestyles.
PepsiCo’s Mission:
“To be the world's premier consumer products company focused on convenient foods and
beverages. We seek to produce healthy 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.”
PepsiCo’s Vision:
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At PepsiCo, they believe that as a corporate citizen, they have a responsibility to
contribute to the quality of life in the communities. This philosophy is expressed in their
sustainability vision which states: “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.”
Their 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.
Shareholders:
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in
the United States. The company is also listed on the Amsterdam, Chicago, Swiss and
Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the
corporation was founded.
PepsiCo Headquarters:
PepsiCo World Headquarters is located in Purchase, New York, approximately 45
minutes from New York City. The seven-building headquarters complex was designed by
Edward Durrell Stone, one of America's foremost architects. The building occupies 10
acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a
world- acclaimed sculpture collection in a garden setting.
The collection of works is focused on major twentieth century art, and features works by
masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto
Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were
designed by the world famous garden planner, Russell Page, and have been extended by
François Goffinet. The grounds are open to the public, and a visitor's booth is in
operation during the spring and summer.
PepsiCo’s Sustainable Advantage:
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Three major sustainable advantages give PepsiCo a competitive edge as we operate in the
global market place:
(1) Big muscular brands
(2) Proven ability to innovate and create differentiated products; and
(3) Powerful go-to-market systems.
Making it all work are their extraordinarily talented and dedicated people.
When they take these competitive advantages and invest in them with dollars generated
from top-line growth and cost-saving initiatives, they sustain a value cycle for their
shareholders.
In essence, investing in innovation fuels the building of their brands.
This in turn drives top-line growth.
Dollars from that top-line growth are strategically reinvested back into new products and
other innovation, along with cost-savings projects.
Thus, the cycle continues. These are very exciting times for PepsiCo. With more than
140,000 employees around the world, they’re all part of a strong and successful business.
And although they're in different divisions and countries, they share a common set of
values and goals. they all know that success takes the work of talented and dedicated
people who are committed to making an impact every day. Their ability to grow year
after year is driven by their ability to attract, develop, and retain world-class people who
will thrive in their environment. This is why they are committed to making PepsiCo the
best consumer products company in the world in every aspect of their business. PepsiCo -
Taste The Success! symbolizes what they stand for as an organization.
Goal for the future:
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Their goal is to capture and convey the excitement of being part
of a dynamic, results-oriented company, with powerful brands and world class people.
Career opportunities at PepsiCo:
A career in the PepsiCo organization is intended to be an accumulation of challenging
experiences over the course of many years - with each experience contributing to the
growth of the individual and organization. Their objective is to match great talent with
important opportunities to build their business.
When thinking about new opportunities and potential moves, they typically consider five
factors. These are: proven results, leadership capability, and functional excellence,
knowing the business cold and key experiences. These elements are evaluated against the
current set of opportunities and their longer-term commitment to growth and
development of their employees.
Major Milestones:
1965 Milestones
PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief
Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief
Executive Officer of Frito-Lay, through the merger of the two companies.
Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern,
N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito
Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company,
founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the
Board of Directors of the new company; Donald M. Kendall is president
and chief executive officer. The new company reports sales of $510 million
and has 19,000 employees.
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Major products of the new companies were:
Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964)
and Mountain Dew (introduced by Tip Corporation in 1948).
Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932),
Lay's brand potato chips (created by Herman W. Lay in 1938), Cheeotos