A SUMMER TRAINING REPORT ON PROMOTIONAL STRATEGIES OF PEPSI IN GROCERY OUTLETS New Delhi SUBMITTED IN: Partial Fulfillment of the Requirement for the degree Of Master in business Administration (2006-2008) Submitted to: Submitted by: Kurukshetra University, Harneet Singh
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A
SUMMER TRAINING REPORT
ON
PROMOTIONAL STRATEGIESOF
PEPSI IN GROCERY OUTLETS
New Delhi
SUBMITTED IN:
Partial Fulfillment of the Requirement for the degreeOf
Master in business Administration (2006-2008)
Submitted to: Submitted by:Kurukshetra University, Harneet Singh
Kurukshetra MBA 3RD SEM Marketing
Roll No-3023 Univ.Roll No
Doon Valley Institute Of Engineering & Technology,karnal(Approved By AICTE & Affilated To Kurukshetra University)
TO WHOM IT MAY CONCERN
Acknowledgement
I would like to thank all the people without whose help this project could not
have been completed.MR.Sanjay Rana, Marketing Manager who was my guide,
was extremely patient and open to what ever suggestion I had to make, and in the
process gently guide me whenever I went wrong. I would like to thank Mr. Aneja
(Administrator) ,who gave me chance to work in a company as reputed as JAI
DRINKS PVT.LTD. The people without whom I could never managed this far as
Mr. Narendra Dhansoia, our Training and Placement officer in the college and
Mrs. Anshu Dhansoia H.O.D our MBA Department.
Harneet Singh
PREFACE
Practical exposure in the field of management is extremely important as it gives a
close view of the real business issues. It helps to cover all part that remained
uncovered in the classroom. It helps to gain experience. Just theoretical
knowledge is not sufficient for the success of any business student. So one should
have practical knowledge about each theory of life.
I learnt lot of new things from this project, which could never have been learnt
from theory classes.
If any findings & recommendations go in any way to prove some new ground in
helping the commodity future sector, I shall deem my efforts have duly served the
purpose.
TABLE OF CONTENTS
1. Executive Summary
2. Profile of the Company:
Overview of the Company
Honours of the Company
Values of the Company
Slogans
3. Verdicts on Ethics and Social Responsibility
4. The Coke Pepsi Rivalry.
Pepsi VS Coke
5. Jaipuria Group with Pepsi
6. Profile of the Organization (JDPL)
7. Objective of the Study
8. Research Methodology
9. Product Line
10. Swot Analysis
11. Conclusion
12. Suggestion
13. Bibliography
14. Annexure
Executive Summary
PepsiCo is a world leader in convenient foods and beverages, with
revenues of about $25 billion and over 142,000 employees. The company
consists of the snack businesses of Frito-Lay North America and Frito-Lay
International; the beverage businesses of Pepsi-Cola North America,
Gatorade/Tropicana North America and PepsiCo Beverages International;
and Quaker Foods North America, manufacturer and marketer of ready-
to-eat cereals and other food products. PepsiCo brands are available in
nearly 200 countries and territories. Many of PepsiCo's brand names are
over 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's success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of
our people.
PROFILE OF COMPANY
In 1893, Caleb Brad ham, a young pharmacist from New Bern, North Carolina,
begins experimenting with many different soft drink concoctions. Like many
pharmacists at the turn of the century he had a soda fountain in his drugstore,
where he served his customers refreshing drinks, that he created himself. His
most popular beverage was something he called "Brad's drink" made of
carbonated water, sugar, vanilla, rare oils, and pepsin and cola nuts.
One of Caleb's formulations, known as "Brad's drink", created in the
summer of 1893, was later renamed Pepsi Cola after the pepsin and cola
nuts used in the recipe. In 1898, Caleb Brad ham wisely bought the trade
name "Pep Cola" for $100 from a competitor from Newark, New Jersey
that had gone broke. The new name was trademarked on June 16th, 1903.
Brad ham’s neighbor, an artist designed the first Pepsi logo and ninety-
seven shares of stock for Brad ham’s new company were issued.
1898 - One of Caleb's formulations, known as "Brad's Drink," a combination of
carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola"
on August 28, 1898. Pepsi-Cola receives its first logo. 1902 - The instant
popularity of this new drink leads Brad ham to devote all of his energy to
developing Pepsi-Cola into a full-fledged business. He applies for a trademark
with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola
Company.
The first Pepsi-Cola newspaper advertisements appeared in the New Berlin.
1903 - "Doc" Brad ham moves the bottling of Pepsi-Cola from his drugstore into
a rented warehouse; he sells 7,968 gallons of syrup in the first year of operation.
Pepsi’s theme line is "Exhilarating, Invigorating, and Aids Digestion."
1904 - Brad ham purchases a building in New Bern known as the "Bishop
Factory" for $5,000 and moves all bottling and syrup operations to this location.
Pepsi is sold in six-ounce bottles. Sales increase to 19,848 gallons.
1905 - Pepsi-Cola's first bottling franchises are established in Charlotte and
Durham, North Carolina. Pepsi receives its new logo, its first change since 1898.
1906 - Pepsi gets another logo change, the third in eight years. The modified
script logo is created with the slogan, "The Original Pure Food Drink."
There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in
Canada. Syrup sales rise to 38,605 gallons. The federal government passes the
Pure Food and Drug Act, banning substances such as arsenic, lead, barium, and
uranium, from food and beverages. This forced many soft drink manufacturers,
including Coca-Cola, to change their formulas. Pepsi-Cola, being free of any such
impurities, claimed they already met federal requirements.1907 - Pepsi-Cola
Company continues to expand; the company's bottling network grows to 40
franchises. Pepsi-Cola sells more than 100,000 gallons of syrup. Pepsi trademark
is registered in Mexico. Syrup sales rise to 104,026 gallons.
1908 - Pepsi-Cola becomes one of the first companies to modernize delivery from
horse drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are
When the cola giants, Pepsi and Coke, entered the Indian market, they brought
with them the cola wars that had become part of global folklore. This case study
details the various battles fought in India by the two rivals with its focus on the
publicity campaigns where the two sought to steal each other's fizz. The case also
outlines battles fought on other fronts - conflicts with bottles, product
modifications, attempts to steal the rival's employees and other mini wars. On the
whole, the case attempts to provide a comprehensive perspective regarding the
dimensions of the cola wars and the direction in which they are heading.
Our real competition is water, tea, nimbupani and Pepsi... in that order."
Coke sources in 1996:
"When you're No 2 and you're struggling, you have to be more innovative, work
better, and be more resilient. If we became No 1, we would redefine the market
so we became No 2! The fact is that our competition with the Coca-Cola
Company is the single most important reason we've accomplished what we have.
And if they were honest, they would say the same thing."
Pepsi sources in 1998:
"Both companies did not really concentrate on the fundamentals of marketing like
building strong brand equity in the market, and thus had to resort to such tactics
to garner market shares."
PEPSI VS. COKE
The cola wars had become a part of global folklore - something all of us took for
granted. However, for the companies involved, it was a matter of 'fight or
succumb.' Both print and electronic media served as battlefields, with the most
bitter of the cola wars often seen in form of the comparative advertisements. In
the early 1970s, the US soft-drinks market was on the verge of maturity, and as
the major players, Coke and Pepsi offered products that 'looked the same and
tasted the same,' substantial market share growth seemed unlikely. However,
Coke and Pepsi kept rejuvenating the market through product modifications and
pricing/ promotion /distribution tactics. As the competition was intense, the
companies had to frequently implement strategic changes in order to gain
competitive advantage. The only way to do this, apart from introducing cosmetic
product innovations, was to fight it out in the marketplace. This modus operandi
was followed in the Indian markets as well with Coke and Pepsi resorting to more
innovative tactics to generate consumer interest. In essence, the companies were
trying to increase the whole market pie, as the market-shares war seemed to get
nowhere. This was because both the companies came out with contradictory
market share figures as per surveys conducted by their respective agencies - ORG
(Coke) and IMRB (Pepsi). For instance, in August 2000, Pepsi claimed to have
increased its market share for the first five months of calendar year 2000 to 49%
from 47.3%, while Coke claimed to have increased its share in the market to
57%, in the same period, from 55%. Media reports claimed that the rivalry
between Coke and Pepsi had ceased to generate sustained public interest, as it
used to in the initial years of the cola brawls worldwide. They added that it was
all just a lot of noise to hard sell a product that had no inherent merit the players.
Coke had entered the Indian soft drinks market way back in the 1970s. The
company was the market leader till 1977, when it had to exit the country
following policy changes regarding MNCs operating in India. Over the next few
years, a host of local brands emerged such as Campa Cola, Thumps Up, Gold
Spot and Limca etc. However, with the entry of Pepsi and Coke in the 1990s,
almost the entire market went under their control. Making billions from selling
carbonated/colored/sweetened water for over 100 years, Coke and Pepsi had
emerged as truly global brands. Coke was born 11 years before Pepsi in 1887
and, a century later it still maintained its lead in the global cola market. Pepsi,
having always been number two, kept trying harder and harder to beat Coke at its
own game. In this never-ending duel, there was always a new battlefront opening
up somewhere. In India the battle was more intense, as India was one of the very
few areas where Pepsi was the leader in the cola segment. Coke re-entered India
in 1993 and soon entered into a deal with Parle, which had a 60% market share in
the soft drinks segment with its brands Limca, Thums Up and Gold Spot.
Following this, Coke turned into the absolute market leader overnight. The
company also acquired Cadbury Schweppes’ soft drink brands Crush, Canada
Dry and Sport Cola in early 1999.
Jaipuria Group with Pepsi
The Jaipuria Group, since 1975 has been a renowned and reputed name in the
field of soft drink bottling. Since its foray into this field the Group has bottled
almost all the major soft drink brands that existed in India like Coca Cola,
Thumsup, Limca and Pepsi etc.Today The Jaipuria Group commands almost 60%
of the Pepsi business in India. With an impressive turnover and plants equipped
with the latest technology The Jaipuria Group can boast of being the biggest
name in the country when it comes to soft drink manufacturing.
The Group has a major presence in most part of the country, with its 22 fully
operational plants running successfully across the country.
Profile of The Organization
Jai Drinks is franchise of Pepsi co India. Jai Drinks is a part of Jaipuria Group.
The annual turn over of Jaipuria Group was 1300 crore in year 2006.The total
business of jai drinks is 80 to 90 crore.
Jaipuria is well established brand name it is operated by:
C.K Jaipuria
R.k Jaipuria
Anurag Jaipuria
Jaipuria Group is now entered in real estate as well. it is also all India
distributor of Raymond franchise of pizza hut, cream well ice cream etc.Jai
drinks is established 5 years ago. It is working on the theme of idea
management. Every employee has the opportunity to express their ideas.
SALES AND DISTRIBUTION:
Jai drinks pvt ltd follows two channels of sales and distribution
1 Direct
2 Indirect
CHART OF DISTRIBUTION SYSTEM
The Plant:
Bottling Plant
Bonded Warehouse
Clearing & Forwarding Agencies (C&FA)
Through dealers Through Cop Own
Retailers
Consumers
The plant has production capacity of 40,000 cases per day. it has a different line
of operation. a finished bottle of beverage has to pass these lines of operation.
Water treatment:
For the production of syrup and beverages, bore well water is passed through
reverse osmosis plant and then it is passed through softening plant to make it
suitable for boilers and compressors.
Syrup Making:
Reverse osmosis water is taken in batch size and added with sugar and aid hypo
and activated carbon powder. Then it is heated up to 82 deg cent and the contact
time is 30 min. The solution is then filtered to get clarity , after which the temp is
brought down to 25 deg cent .finally this solution is flushed in to a tank and
mixed with concentrated as per batch size to get finished syrups.
Mixing:
Syrup produced above is pumped into beverage maker i.e. intermix/Para mix.
Where one part is mixed five part of or water and co gas. Finally beverage
produced and transfer to the filler.
Bottle Washer:
Bottle received from the market are washed with caustic soda at different
temperatures for 20 minutes. This washer has a capacity of washing 400 bottles
per min.
Filling And Crowing:
Filler receives the beverage from the mixer and washed bottles from the bottle
washer and the bottles are filled with the beverages and send to the crowner
where it is crimped. Final the bottles are coded and pass through final inspection.
OBJECTIVE OF STUDY
1 To know about the company(Pepsi) and their different products
2 To learn about the organization(jai drinks pvt ltd)
3 To watch the relation between the company and their distributors.
4 To analyze the different problems that a retailers faces during the sale of
Pepsi products.
5 To know about promotional activities of soft drinks.
6 To correlate the market share of Pepsi products.
Research Methodology
Research in general refers to the search of knowledge. One can also define
research as a scientific & systematic for information on an specific topic.
In simple words research is the careful investigation or enquiry of markets
especially through search for new facts in any branch of knowledge.
Sampling & Sampling Design:
The procedure by which a few fields are chosen from the data to be studied in
such as way that the sample can be used to estimate the same characteristics in
the total is referred to as sampling.
The advantages of using samples are that it is much less costly, quicker and, if
selected properly, gives results with known accuracy that can be calculated
mathematically. Even for relatively small samples, accuracy does not suffer even
though precision or the amount of detailed information obtained might. These are
important considerations, since most research projects have both budget and time
constraints.
SAMPLING PLAN:
Type of universe : The type of universe selected in sample design of my research
is finite universe.
Sampling unit: sampling unit in my research is all individuals.i.e all the suspects
Size of sample : an optimum sample is one which fulfils the requirement of
efficiency representative ness reliability and flexibility
Sample : size = 120
System of research:
Method used for research survey method
Instrument used questionnaire
SOURCES OF DATA:
There are two sources of collection of data
1. Primary:-It is where information is penetrated. It is that data which is collected
by researcher himself for solving the solving the specific problem in hand.
2. Secondary data: - The data which can be obtained through census registration
data and public ally circulated reports of individual projects guides etc
Data Collection:
Data collection is a key activity of research. The design of data collecting method
is the back bone of research design
1 Observation method: - in this method the data is personally collected by the
researched or his agent. it can be structured on un structured participant or
non participant and controlled or uncontrolled.
2 Survey method
Personal collection of data through face interview.
Mail survey through questioners
Technique of survey: personal interview
Sampling unit: retailers
Sampling extent: Delhi city
Sampling: random
PRODUCT LINE:
1. Pepsi cola
2. Mirinda
3. Mirinda lemon
4. Seven up
5. Mountain dew
6. Slice
7. Diet Pepsi
8. Pepsi gold
SWOT ANALYSIS
SWOT ANALYSIS
STRENGTHS (S):
Brand name
One quality worldwide
Very strong distribution network
High brand recalls rate
WEAKNESS (W):
Dakshinpuri is the lowest selling area of all the products and contributes
low sale volume.
Visipurity or rack purity is not up to mark.
OPPORTUNITIES (O):
Huge market yet to be cover.
Day by day sugar patient is increasing and Pepsi is also available without
calorie.
Dew is in demand these days.
THREATS (T):
Retailers may not be giving adequate display shelves or space
Customers are moving towards natural drinks.
Some retailers kept refrigerators in stores.
CONCLUSION:Jai drinks deals with center and south Delhi .I have covered many routes and among these routes I found that our services are not up to mark. We give refrigerators too many outlets but they are not using our fridges in a right manner. These should be used exclusively for Pepsi drinks. I also seen in many outlets that coke products fridges are placed on a good site and are visible but our Pepsi fridges are kept in stores. I went route no 53 yesterday their shopkeeper has complaint regarding our discount and scratch card schemes. He also has our membership certificate but he dint get any discount yet. So here there is a need to improvement. I also want to mention if our salesman is on leave so please make somebody else to visit that area because here we don’t loose the sale even on that day but it also leads to many problems. I am sorry to say but I have to say our merchandisers are not performing their duties systematically and efficiently. Our salesman arrives at 8am but they usually vacate the place by 10am. So coke salesman sometimes takes advantage of our getting late and they visit earlier than us. Sir, our aim is to satisfy customer needs so please look at all these areas and take effective steps to remove these imperfections.
When I came to this organization our M.M told me Jo Dikhta Hai Wahi Bikta Hay.So our Pepsi products must be kept in a manner that they should attract the customers.One thing which I want to bring in your kind notice the Coke Company has let down the rates of empty bottles. So we should also look at our competitor eye.
Suggestions and Recommendation:
1. Merchandiser should be given training by holding seminars.
2. Our refrigerators should be used exclusively for Pepsi products. So for this proper audit is required.
3. Like I have seen in many outlets our Pepsi refrigerators are placed in stores. So here there is a need of improvement.
4. I want to tell one more thing those bottles are not properly clean sometimes.
5. It may not be consider out of the way if I mentioned that the belongingness of workers which ought to be is not found.
Promotional schemes or offers:
Promotional schemes or offers are important factor for a product or services
because it forces the distributors to increase the sale of that product or services.
So measurement of promotional schemes or offers becomes important.
Permotional Schmes or Offers
Yes, 50
No., 30
Don’t Know, 20
Yes No. Don’t Know
INTEPRETION: According to the pie chart 50% of the outlets are aware of
promotion schemes
JO DIKHTA HAI WOHI BIKTA HAI
Visipurity and rack purity in the market is the basic and important thing for the
product to measure this I visited many shops in different market .
INTERPRETION : According to the pie chart 48% of the outlets having
visipurity and rack purity and 42% are fair and 10% gives poor response.
DIRECT AND INDIRECT ROUTES
This graph show the relationship between the company and its direct roots and indirect roots with retailers.
direct channel68%
indirectchannel
15%
both17%
Market Sales Analysis:
This bar diagrams shows the sales differences in these given area of Pepsi
SHIV STORE 40JYOTI STORE 17SUPER 09RAJAT 43BISHAN 43ARORA 25VARDHMAN 07BALAJI 07KRISHNA 08SURENDER 08KUMAR 23ANOOP 15SUBASH 15M’S STORE 24
NAME OF OUTLETS WHICH ONLY SELL PET BOTTLES:OUTLETS NAME ROUTE NOJANTA PROV 27JAI BHAWANI 31SHOPPING PLAZA 31NAGINA 31DHARIWAL 43KUKREJA 43STANDARD NAMKEEN 43KRISHAN PROV 53JAGDISH 72GARG 04MITTAL 25GUPTA 25KASHMIR DAIRY 26ANAND 26SAISBURY CONVENIO 29GOYAL STORE 64BANSAL BHANDAR 64DELHI FRUIT 64
QUESTIONNAIRE
NAME………………………………………
ADRESS…………………………………….
……………………………………………….
PH.NO……………………………………….
1. What do you say about relationship of the company with the retailers is
A. very healthy . very poor
C. average D. no comments
2. Are you getting your requirements (goods) timely
A. yes B. no
3. What is your daily average sale of
Pepsi products
4. How would you rate the promotion/ advertisement of pepsi products
A. excellent B. good
C. fair D. poor
5. is the company giving you good schemes / offers to promote the sale of pepsi
products.
6. How would you rate the popularity of Pepsi products.
A. excellent B. good
C. fair D. poor
7. What do you say about demand and supply
A. D>S B. D<S
C. D=S D. don’t know
8. Are you achieving our sale target?
A. yes, then go to 9, 10 B. NO, THEN GO TO 11
10. Then the reason behind it is
A. brand name/good advertising B. high demand
C. monopoly D. good quality/taste
11. Then how much you sell more
………………………………………
12. Then the reason behind it is
A. bad advertising B. low demand
C. healthy competition D. bad taste
13. What are the different problems that you are facing during the sale of Pepsi
Products?
…………………………………………………………………….
…………………………………………………………………….
…………………………………………………………………….
13. Do you want to suggest any thing to increase the sale of Pepsi products?