Pepsi Project

ON COMPARATIVE STUDY OF

PEPSI AND COKE ON THE ACCOUNT OF S.K.U. AVAILABLITY IN

THE MARKET UNDER LUMBINI BEVERAGES PVT. LTD

IN PATNA

Submitted to :

COLLEGE OF COMMERCE(M B A)

Under the supervision of:- Under the guidance of:-

RAHUL KUMAR SINGH Mr. S. K. VERMA C.E. FACULITY (MARKETTING) M.B.A.

LUMBINI BEVERAGES PVT.LTD., COLLEGE OF COMMERCE, PATNA. PATNA.

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ON “ COMPARATIVE STUDY OF

PEPSI AND COKEON THE ACCOUNT OF S.K.U.AVAILIBLITY IN

THE MARKET UNDER LUMBINI BEVERAGES PVT .LTD ”

PROJECT REPORTSUBMITTED IN THE PARTIAL FULFILMENT FOR THE AWARD OF

DEGREE OFMASTER IN BUSINESS ADMINISTRATION

(2010-2012)

COLLEGE OF COMMERCE, PATNA(Approved by AICTE, Ministry of India & Magadh University, Bodh Gaya)

Submitted to:- Submitted by :- Mr. GYANESH AWASTI VISHWAJEET KUMAR T.D.M. Roll no - 1003 LUMBINI BEVERAGES PVT. LTD., M B A ( Marketing ) PATNA Session – 2010-12

P R E F A C E

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Training as we know is essential to supplement to theoretical knowledge with

the practical knowledge and to inculcate efficiency. It was observed that due to lack of

practical knowledge most of the managers are ineffective in their job. Due to this reason

“summer training of six weeks has been made an integral part of the syllabus of

MASTER OF BUSINESS ADMINISTRATION by the COLLEGE OF

COMMERCE, PATNA Summer training report is considered a major component

of the training. Summer training remains incomplete till the report has been presented

and/or written. The purpose of summer training is not well served unless the findings and

experiences gained are made known to others. Writing of report is the last step in the

Summer Training Programme.

Thus, the purpose of training and subsequent of report writing are meant both as a

mean of gaining first hand experience in the organization and also an academic exercise. In

the above-mentioned context, I had a privilege of getting this practical training.

The training is done under “LUMBINI BEVERAGES PVT. LTD” Hajipur (Vaishali).

The Summer Training Report, which is prepared after Six weeks of training period is here

for the partial fulfillment for the award of the degree of MBA (Marketing with Finance).

The topic “A Comparative study of PEPSI and Coke on the account of S.K.U. avaliblity in

the market in Patna with special reference of PEPSI INDIA. Ltd. under Lumbini

Beverages,” was selected to understand the various activities involved in marketing during

supply of product from plant to end user, like promotional activities, sales promotion,

advertising, distribution channel, merchandising policy etc.

I would like to express my sincere gratitude to all those persons who help me in the

prepration of the project.

VISHWAJEET KUMAR

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ACKNOWLEDGEMENT

This project report is a sincere attempt to carefully and systematically gather facts about and evaluate the sales comparision with COKE and market research of M/s Lumbini Beverages Pvt. Ltd ., Hajipur, as a part of the course curriculum of MASTER OF BUSINESS ADMINISTRATION , From COLLEGE OF COMMERCE, Patna which is based on Six Weeks duration. For the completion of my project report many person directly or indirectly assisted me.

First and foremost, I express deep sense of gratitude to my honourlable Guide Mr. S. K. Verma Faculity (Marketting) of COLLEGE OF COMMERCE (MBA) Patna who guided me during the project

I also express to Mr.Gayanesh Awasti (T.D.M.) PEPSI, PATNA my profound sense of gratitude of who provide me an opportunity to work and also guide me at every to work and also guide me at every step of my project. His proper direction and constant inspiration provide to be an asset for this project.

I am also grateful to Mr. N.K.PRASAD– HRD Manager, Lumbini Beverages Pvt. Ltd., Hajipur. For giving me opportunity to learn and conduct research in their esteemed organization. Words are too little to express my gratitude to them.

Since the reader would like to know the general details of 2-cola giants, therefore, chapter includes a discussion of theoretical aspects and its application is included. Further to help the reader to understand the finding with graphical representation , conclusions and suggestions are also included, which very much helps to know that where LUMBINI BEVERAGES PVT. LTD., stands in the soft-drink market. What is the market value of Pepsi and how Pepsi is doing against Coca-Cola.I hope this report will be special interest to the marketing students, who are on look for such real life situations beyond their classroom studie.

VISHWAJEET KUMAR

C O N T E N T S

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Preface &

Acknowledgement

PARTICULARS PAGE NOS

PAGE NOS.

Chapter 1 : Introduction of the Research 07-091.1 Introduction of the research topic

1.2 Reason for selecting this topic

1.3 Importance of the research

1.4 Research objectives

1.5 Research scope

Chapter 2: Soft drinks industry profile 10-15

2.1 Soft drinks industry in India

2.2 History of Pepsi

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2.3 Pepsi – The Indian experience

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2.4 Characteristics of soft drinks

Chapter 3: Organization and Product profile 16-21

3.1 A brief history of Lumbini beverage Pvt. Ltd

3.2 Profile LBPL

3.3 Organizational hierarchy

3.4 SWOT analysis

3.5 Product profile

PARTICULARS PAGE NOS.

Chapter 4: Marketing Activities 22-28

4.1 Market Segmentation

4.2 Promotional activities

4.3 Merchandising policy

4.4 Advertising Strategy of the company

4.5 Distribution channel of LBPL

Chapter 5: Market Survey 29-32

5.1 Research methodology

5.2 Dealer survey

5.3 Limitations of research

Chapter 6: Data Analysis and Intrpretation 33-436.1 Overall Market Share

6.2 Flavour Wise Market Share

Chapter 7: Conclusions and Suggestions 44-45

7.1 Conclusions

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7.2 Suggestion

Annexures 46-49

Glossary of Terms

Questionnaire

Bibliography

Data Collection Sheet

CHAPTER-1

INTRODUCTION OF THE TOPIC

1.1) INTRODUCTION

1.2) REASON FOR SELECTING THIS TOPIC

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1.3) IMPORTANCE OF THE REASERCH

1.4) RESEARCH OBJECTIVES

1.5) RESEARCH SCOPE

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1.1 INTRODUCTION

Beverage industry is one of the fast growing industries in India. It can be divided into two

sections i.e. carbonated and Non-carbonated. The carbonated drinks that can be further

classified into Cola, Lemon Orange, Mango and Apple segments.

1.2 REASON FOR SELECTING THIS TOPIC

The topic has been already given by the company to collect information about current

happening in the market. It also helps to makes improvements in service and quality of the

product, for their long time existence in the market and getting profit.

Simultaneously, it is also helpful for me to learn the consumer behaviour and observe their

attitude towards demand of particular products practically.

1.3 IMPORTANCE OF THE REASEARCH

The training in the organization is very important for a student who is undergoing with

such Course. This course is not the answers for all the problems, which arises in the

practical field. There is no certain formula for any particular problem, but the aim of this

study is to develop the ability of decision- making. Right decisions at right time itself

help the organization to run smoothly.

The training in an organization gives an idea how decisions are taken when any problem

comes to an executive. So the way of problem solving, right decisions making and

knowledge of different type marketing actiivites give much importance to the study.

Simultaneously, it is also beneficial for the company to make certain change in quality

/service/price of the product according to consumer demands. For long running a business

organization such types of improvements iin needed time to time.

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1.4 RESEARCH OBJECTIVES

The following were the main objectives of the research:-

1. To know the stock position of Pepsi and its competitors at different outlets.

2. To study the marketing and promotional activities at various retail outlets.

a. To know the per day sale of Pepsi brand and its competitors in Crates.

b. To study the percentages share of Pepsi’s cooling equipments.

3. To know how many outlets are covered with glow signboard of Pepsi.

1.5 RESEARCH SCOPE

The main scope of this research is ascertaining the various methods to increase the sales volume

and distribution activity of the concern. The methods include regular measures to make the brand

position in the market and taking measures to confirm the brand in position. One of the most

important aspects of this study is also to increase the market segement for the products.

Many more scope of this topic may be as follows:

i. Target market segment.

ii. Evaluating awareness about Pepsi Company.

iii. Comparison of Pepsi product to competitors.

iv. Identification of market potential.

v. Evaluating customers need with compay product

vi. Collecting suggestion for product improvement etc.

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CHAPTER-2

SOFT DRINKS-INDUSTRIES PROFILE

2.1) SOFT DRINKS INDUSTRIES IN INDIA

2.2) HISTORY OF PEPSI

2.3) PEPSI-THE INDIAN EXPERIENCE

2.4) CHARACTERISTICS OF SOFT DRINKS

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2.1 SOFT DRINKS INDUSTRIES IN INDIA

A soft drinks is a non-alcoholic beverage. It is artificially flavored and contains no fruit

juice or pulp. India with population of more than 100 crore is one of the largest consumer

markets in the world after China. Soft drinks is a typical consumer product purchased by

individuals to quench thirst and secondly for refreshment.

Searching for the point of origin of Indian soft drinks I first document on Gold Spot,

which was the first brand soft drinks in India. It was introduced by PARLE during later

part of 40’s. Cola giant, Coca-Cola was the first foreign soft drink to be introduced in India

in 1965, Coca Cola made a very good beginning and dominated the whole scheme right

from the world go. It (Coca-Cola) faced no competition at that time.

This extraordinary success of soft drinks can be attributed to the following factors:

Absence of contemporary competitive brand.

Euphoric image build up in the Western countries proceeded the entry into

India Market, and

Indians are very found by nature of foreign goods, services etc. due to

prolonged foreign rules.

PARLE EXPORTS PVT. LTD. Later in 1970 introduced Limca, Lemony Soft drinks.

Before Limca introduced they had tentatively introduced Cola, Pepino, which they had to

withdraw in the face of battering confrontation with Coca-Cola soon.

Three of four groups of Indian companies, which had the required production capacity

started their own brands of Cola. Lemon, Orange, but failed to achieve their goal on a

national basis.

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India always has love and hate relationship with MNC’s which gave a significant

opportunities to soft drink industries in India when Coca-Cola decided to windup its

operations in 1977 rather than bowing to the Indian government insisting on:-

Dilution of equity, as the government felt that lots of foreign currency was being

wasted.

Manufacturing of the top-secret concentrate in India.

Disclose of the chemical composition of the essence.

This left a large vacuum in the popular soft drink market, and a vista was opened to any

company with the requisite, techanical, marketing and organizational skills.

The existence of Coca-Cola from India in 1977 accelerated the growth of several Indian

soft drinks. New soft drink in the form of Tetra pack enters the market among Frooti,

Jump-In, and Tree-top Ire the prominent once. Till 1977 their equipped bottling plants and

the distribution network a longing to be of no use. It took them one year to develop new

formula to survive and gradually came up with Campa. Lemon, Orange and Cola that

order.

However Parle, the pioneer in the soft drinks, blazed its way to national prominence with

their product “Thumps-Up”, bearing the slogan “Happy Days Are Here Again”. This

particular slogan helped to win over the loyalists or addicts to Coca-Cola. Soon the

Indian Soft drinks industries started at a phenomenal rate, and all Parle products Gold-Spot,

Limca and Thumps-Up became the brand leader in their own segment.

In spite of all these the drinks market still has large gap, as claim by soft drink

manufacturers. To fill these gaps there are many soft drinks concentrate and squashes

flooded the market. The Indian soft market basically offered three flavors i.e. Orange,

Lemon, and Cola.13

1988 saw the coming of the multinational company PEPSI entering the Indian market. 11

years after the existence of Coca-Cola. It had name, fame and edge of being one of the

best in the game and it also offered stiff competition to Parle and Coke. Now Pepsi is

going all out to prove that they are the best.

2.2. HISTORY OF PEPSI

Pepsi-Cola Company founded by CALEB D BRADHAM in 1890 at North Carolina in

USA.Its CEO is ROGER ENRICO and in India Pepsi Co. holding its chairman MR.

RAJIV BAKSHI. The head quarters of Pepsi-Co. in India is at Gurgaon.Presently it is

operated in 196 countries.

Pharmacist CALEB inventd it to cure the disease “DISPARSIA”. It is from this word that

was related to Pepsi. Soon it entered the American market as soft drink which at that time

was mostly dominated by Coca-Cola, but soon Pepsi was able to dominate the Cola market

and thereafter it has been no looking back. Pepsi and Coca-Cola are engaged in ferocious

cold war that has taken the whole world by storm.

Pepsi stands 51st position among the fortunate 500 companies of the world. Its total capital

is approx $3000 crore and total sales annually is worth $37 crore, half of which comes from

beverages and other half from the Sack foods division. The beverages arm of the Pepsi co. is

Pepsi-Cola Company and the snack-food company is called Frinto-Lay-Inc. The year 1998

is the centennial year of Pepsi. Its total profit in the year 1996-1997 was worth Rs. 45 crore

approx. The total number of employees engaged in this business is 4.25 lakhs globally.

2.3 PEPSI-THE INDIAN EXPERIENCE

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Previously there were two ad tags “Yehi Hai Right Choice Baby” & “Nothing Official

About It”, which immediately ring a bell-its to be a Pepsi. But today this ad. tag has been

changed and now it’s “Yeh hai youngistan meri jaan”.

Pepsi in a short span of its operations in India has found a place in hearts and minds of the

Indian consumers. The success has primarily been due to the innovate and passionate

Indian team which has been built over the years. Pepsi is a trendsetter managed and run by

Indians, where important decisions are taken locally.

Pepsi started its operation in India in 1988 in Kanpur and since Pepsi Co. has set up a fully

integrated operation India viz. Manufacturing, Research and Development, Marketing

distribution and franchising – Covering fruit/Vegetable processing, export, snack foods

and beverages. In 1993 Pepsi Co. set up a hold company to further accelerate growth

through new initiatives and joint ventures. Pepsi Co. is fully committed to India and the

national objective of development of technology and accelerating exports and employment.

It has invested 500 crore in India to develop the local market Pepsi has distributed

exclusive franchises in India to bottle its total product. There are 34 bottling plants of

Pepsi in India. Pepsi directly controls some and rests are under various franchises.

Some special features in Indian scenario:

1. BEVERAGES:

Pepsi has set up a concentrate plant in 1989 at Channo, District Sangrur, Punjab, With an

investment of 55 million the state of the art Plant houses a world – class laboratory where

soft drinks from all over the world are tested. This concentrate plant supplies Pepsi. 7-Up

Teem, Mirinda, Orange, Apple & Lemon flavors to all the Pepsi bottling plant in South

Asia

Pepsi has 34 Botting plant in India, out o;f which 8 are company owned and 26 are owned

by Indian franchisee, Pepsi Co. has invested heavily on up graduation of these bottling

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plants and has put 5 green field project in backward areas such as Jaipur and Bazapur in

U.P. Bharuch in Gujarat, Sonapur in West Bengal and Naclamangala in Karanataka. New

Project is coming up in Maharashtra and Tamilnadu.

In addition to; the Companies Own Bottling Operation (COMBO), Pepsi has 26 Franchisee

owned Bottling units in India. These franchisee manufacturers are also planning to install

substantial additional capapcities. In last two years Pepsi Co.’s franchisees have put new

bottling plant at jaipur, Bhopal, Hajipur (Bihar). Guntur (A.P.) and Guwahati(Assam) with

further investments. Pepsi Co.’s franchisee are amongst the best in the Pepsi world.

2. JUICES:

Pepsi Co. launch juices in a bog way in India, there by helping the farmers in fruit

procurement. Pepsi Co. Agriculture scientists have undertaken research on Mango, Guava

and Oranges and these fruits would be the priority area for the juice launch in India.

presently Pepsi has one juice brand.The name of the juice is Tropicana orange and

Tropicana Apple . No preservatives has been added in this two flavours.

3. EMPLOYMENT OPPORTUNITIES:.

Pepsi provides direct and indirect employment to persons in supplying it’s raw materials,

packing materials, distribution vehicles, glass bottles, plastic crates, display racks etc.

And to small artisans, paintings and small traders in market places activities.

All the Pepsi’s business in India is either in Industries with backward linkages with

farmers or in service industries, being highly distribution oriented. He Pepsi system

operates over 300 trucks (direct operations). 8000 three-wheeler(distributors) and at least

1000 push carts, serving over half a million outlets in India. By the year 2005 the number

of outlets to be served are expected to be doubled.

4. DEVELOPING SPORTS:

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PEPSI today is one of the main sponsors related activities in India has continued to

promote upcoming new players of Cricket, Hockey and Football. In Mohali, Disclose of

the chemical composition of the essence.

Pepsi has developed a Pepsi Cricket Academy, which would develop over 500 Young

Cricket enthusiasts in next five years. Similarly Pepsi cricket coaching camps and clinics

are held to coach young boys in North and South.

5. COMMUNITY RELATIONS:

Most of the bottling plats of Pepsi are located in backwards areas, thereby giving huge

employment opportunities in these areas. Pepsi as a responsible company undertakes social

projects in and aroung the bottling plants. These include supports to the education centers.

Sponsors inoculation camps, providing free health checkup, initiating sanitation, drives,

promoting literacy drives and helping villages to put up bus shelter etc.

6. REVENUE GENERATION:

It is estimated that Pepsi-Co and its franchises generates over Rs. 500 crore (in 1977) to the

exchequer by the collection of excise duty and sales tax.

2.4 CHARACTERSISTICS OF SOFT DRINKS

Unfinished goods (Required chilling before consumption).

Two -way transportation ( Once filled bottles to market and

Second empty bottles from market).

Heavy expenses on advertisement and promotions.

More attention to retailers. Several schemes and other facilities provided to them.

Next flavors are introduced time to time.

Highly competitive market with only two equally strong Players.

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CHAPTER - 3

ORGANIZATION PROFILE

3.1) A BRIEF HISTORY OF LUMBINI BEVERAGE

PVT. LTD.

3.2) PROFILE OF LUMBINI BEVERAGE PVT. LTD.

3.3) ORGANIZATIONAL. HIERARCHY.

3.4) SWOT ANALYSIS

3.5) PRODUCT PROFILE

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3.1 A BRIEF HISTORY OF L.B.P.L.

Lumbini Beverage Pvt. Ltd. Is situated at Industrial Area, Hajipur in Vaishali district of

Bihar. Mr. Charan Khilani, who is a resident of Kolkata, established it in the year 1997.

It is one of the Pepsi Foods bottling Plants in Bihar. “Ananda Marketing Pvt. Ltd.”, was

a marketing divisions of “Lumbini Beverage Pvt. Ltd.” But, now” L.B.P.L. does its

marketing itself.

3.2 PROFILE OF LUMBINI BEVERAGE PVT. LTD.

Company Land Area : 9.30 Acres

Location and Authority : EPIP, Industrial Area, Hajipur- 844101

Name of Director/Occupier : Charan Khilani

Industrial Licence No. : Regn. No. – H 12475(C)

Factory Licvence No. 66750/VLI

Date – 16.08.97

F.P.O. Licence No.- 10607/97

Capacity : 1500 bottles per minute

Nature of product : Soft drink, Pepsi, Mirinda, Soda, Slice,

Aquafina,Tropicana

No of employees : 150+150(max.) Seasonal laboures on

any day in the Season

Control Board : NO. 1877. Date – 07.04.97

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3.3.A.1 ORGANIZATIONAL HIERARCHY

BOARD OF DIRECTOR

MANAGING DIRECTOR

DIRECTOR

CEO

FINANCE PLANT P.A.M H.RMANAGER MANAGER MANAGER

A/C ASSISTANT SHIFT SHIPPING H.R.EXECUTIVE ENGINEER COORDINATOR

A/C WORKER/ .CLERK OPERATOR

H O S

T.D.M M.E.M M.D.M.

A.D.C SINIOR M.D.C TECHNICIAN EXECUTIVE

C.E TECHNICIAN M.E

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3.4 SWOT ANALYSIS

STRENTHS:

1. Lumbini Beverage Pvt. Ltd. Is franchise Owned Operation (FOBO) of

world’s most

Famous soft drinks Pepsi Co.

2. LBPL uses state of the art and fully automatic machines and technology for

the production and bottling of soft drinks.

3. It has very strong network and built market and currently holds all the parts

of the state.

4. It has wide range of product varieties.

WEAKNESSES:

1. No cost cutting program for the products.

2. Promotional activities in the rural market is not upto the mark as compared to the

Urban market.

3. Brand Pepsi in cola flavor is one of the popular lagging behing with its nearest

competitor, only due to high sugar content and less thrilling taste.

4. Not viability of all the products on demand.

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OPPORTUNITIES

1. LBPL makes the buying process more convenient of efficient ( It provides

the Pepsi products at required places i.e. direct to distributors and to retailers

through distributors).

2. The executives of company meet the need for more information and advice

to distributors/retailers/customers.

3. It takes return the leakage, burst bootles etc.

THREATS:

1. One of the products of their competitor in lime flavor as a very good market

share due to its taste

2. Coca-Cola is now spending more and more to boost up the sale.

3.5 PRODUCT PROFILE

The product profile of LUMBINI BEVERAGE PVT.LTD. is:

NAME OF PRODUCT FLAVOUR PACK SIZE COLOUR

PEPSI COLA 200 ML BURNT SUGER





7UP LIME 200 ML NON COLOUR

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MIRINDA ORANGE ORANGE 200 ML SUN SET





MOUNTAIN DEW LIMON 200 ML NON COLOUR




LEHAR SODA SODA 300 ML NON COLOUR

LEHAR SODA SODA 600 ML NON COLOUR

SLICE MANGO 200 ML YELLOWISH




SLICE MANGO 200 ML

TETRA

YELLOWISH

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NIMBOOZ LIME 350 ML VIBRANT

NIMBOOZ LIME 200 ML VIBRANT

AQUAFINA WATER 1000 ML NON COLOUR

TROPICANA ORANGE 200 ML

TETRA

SUN SET

TROPICANA ORANGE 1000 ML

TETRA

SUN SET

TROPICANA APPLE 200 ML

TETRA

REDISH

TROPICANA APPLE 1000 ML

TETRA

REDISH

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CHAPTER – 4

MARKETING ACTIVITIES

4.1) MARKET SEGMENTATION

4.2) PROMOTIONAL ACTIVITIES

4.3) MERCHANDISING POLICY

4.4) ADVERTISEMENT STRATEGY OF THE COMPANY

4.5) DISTRIBUTION CHANNEL LBPL.

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4.1 MARKET SEGMENTATION

The soft drink being a FMCG product has a wider and scattered market. Thus to enable

concentrated effort of marketing activities in different scattered market, the entire market is

broken down into the following segments.

Route Market

Home Market

At work market

ROUTE MARKET:

Outlet in this market cater to those people who are engaged in shopping, eating,

outgoing to and From work, in amusement enters etc.

HOME MARKET:

Outlets in this market cater to people buying prominently for home consumption

Either by case or loose bottles.

AT WORK MARKET:

Outlets in this market cater to people working in officers. Factories etc. An attempt is

always Made to make soft drinks readily and conveniently available all day long while

people are Actively working.

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4.2 PROMOTIONAL ACTIVITIES

Promotional activities play a greater and important role in the marketing effort carried

Out by PEPSI CO. It is for more create and maintain image of its products.

PROMOTIONAL ACTIVITIES CARRIED OUT BY LUMBINI BEVERAGE

PVT. LTD:

LBPL carry out its promotional activities as a controlled and integrated program of

Communication and material design to present its soft drink to the prospective customer.

The tools used by Lumbini Beverage Pvt. Ltd., for fulfilling the various purposes of its

Promotional activities are the following:-

(I) Point of Purchase:

A sensible man does not have to go for too find out whatever a common panwala knows that

People buy with their eyes. Every item of sale in a shop is displayed in front where people

Can see it at the first sight. It is the same with all the shops ad vendors in towns either

selling Consumer goods or selling soft drinks. Rather in selling product like PEPSI display

is more help it is an essential element because soft drink is bought a impulse on the spur of

the movement. Thus the product is tested when it is brought at people’s attention.

(ii) Special event market:

The dealer at special event sport places the banners and stall of Pepsi’s products. Like

picnic, Cricket match, social activities are also used to cater the people. It help in promoting

the sale As well as in creating an image of products.

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(iii) Media planning:

A very important part of advertising is to decide the medium of advertising and how much to

spend in each media:

Newspaper

Radio

TV

Hoarding

Product of sales materials ( paintings, glow signs, D.Board)

Advertising is one of the important factors which all put together results sales. It has to be

backed by the distribution network, effective servicing, dealer, goodwill and so on. Thus

advertising has to be very carefully woven with the entire demands of marketing.

PROMOTIOAL ACTIVITIES CARRIED IN PATNA:

Point of purchase (POP)

Special events ( fair show, Road show etc.)

Hoarding

By Newspaper, TV. Radio etc.

4.3 MERCHANDISING POLICY

In today’s fast moving industry and highly competitive market, only those products are

likely to be purchased which are capable of hitting the impulse of the consumers. The

products appeal should be able to penetrate and get embedded into the perpetual space of

the consumer’s mind. The concerned product should induce to the consumers. Pepsi

believes that “Jo Dikhta Hai Wahi Bikta Hai” i.e. any product which is visible is bound to

be sold.

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METHODS OF MERCHANDISING:

Visicooler placement

Glow signboard

Paintings

Crate Stacking

Umbrella

Banners

Display

Special Schemes

4.4 ADVERTISING STRATEGY OF THE COMPANY

The main motive behind the purpose of advertising of the PEPSI co. is to maintain the brand

loyalty though recalling the memory of the users of soft drinks as to attract the potential

consumers who consume a soft drink. On the national basis the media extensively used are :

Newspaper, short advertising films, Radio, T.V.

Besides the advertising being carried out by Pepsi Co. Lumbini Beverage Pvt. Ltd., Hajipur

also carries out its own promotional program of which advertisement is an important aspect.

The Lumbini Beverage Pvt. Ltd. Is free to use any media, messages, copy etc. as and when

required by them but single factor which remain the same as used for each Pepsi Co’s

bottling company on national level. The main slogan being used by PEPSI Co. bottle

all over India for its Cola Products has been “The choice of new Generation”. The main

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Model in the advertising is the Best Cricketer-Sachin Tendulkar, Best Actor – Amitabh

Bachchan, Sharukh Khan, Best Actress – Kareena Kapoor, Preeti Zinta,Dipika padukon

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4.5 DISTRIBUTION CHANNEL OF ‘LUMBINI BEERAGE PVT. LTD.”

To make its products available at the right place, at the right time in the market, at the right

place, the sales department of the company plays major attention towards controlling the

channel of distribution.

The company right from its beginning stage maintains single type of marketing channel. The

nature of channel is as follows:

COMPANY

DISTRIBUTORS

RETAILERS

CONSUMERS

I. ABOUT DISTRIBUTORS:-

At first, soft drink is supplied to distributors. Retailers cannot take the delivery directly

from the company. They have to take it from their respective of nearest distributors. The

distributors selected on the basis of assurance given by them regarding minimum sales,

which they have mention annually. The selection is also done on the financial position and

reputation of distributing in the market. As for the example, first priority is given to those

people who are in cigarette business. Depending upon market each distributor in its initial

stage, deposit some security money. This amount varies between five thousand to ten

thousand. The distributors at first have to seek the permission to the sales department for the

number of cases of soft drinks required by them. After getting for the proper authority

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from the sales department, they take the delivery from the shipping department paying

the requisite either in cash or as demand draft.

The distributors can be dropped if they fail to achieve the required target of sales. They

can be also droped when they don’t follow the instructions given by the company or when

they charge high price or when they are engaged in black marketing, loading etc. But the

company has not dropped any of its distributors till now.

The supply of soft drinks to the distributors depends upon the ups and downs in the sales.

But, in the initial stages, the distributors have to sell up to a minimum target set by the

company or as decided by an agreement between the company and the distributors. In the

last stages soft drink is supplied as and when demanded by the distributors.

II. ABOUT RETAILERS:-

The distributors select the retailers. There is no relation between the company and its

retailers. On the other hand there is no definite and fixed criteria from the selection for

appointment of retailers from the side of distributors. Any one like “Panwala”,” Cigarette

shop” or any other shopkeeper can have the stall for the sale of soft drinks and they are

called retailers or dealers. They have to give assurance to the concerning distributors for

better sales and at the time of taking delivery they have to deposit the security that is the

change for the empty bottles with specified purchasing price.

Generally, there is no compulsion on that part of distributors to provide the transportation

facilities to their retailers, but the distributors of the big areas like Patna, Muzzaffarpur,

Patna provide the transportation facilities to their respective retailers. The

distributors and retailers are independent to sell as they want but are controlled to some

extent by the company also, as they have to give some assurance regarding minimum sale. It

happens so because they are given some incentives also. They are fully independent to

gear up the market, as they want.

32

CHAPTER-5

MARKET SURVEY

5.1) RESEARCH METHODOLOGY

5.2) DEALER SURVEY

5.3) LIMITATIONS OF THE RESEARCH

33

5.1 RESEARCH METHODOLOGY:

All the findings and conclusion obtained are based on the survey done in the working area. Within

the time limit, I tried my best to select the sample representative of the whole group. During my

job training I maintained different routes during my dealer survey. I have collected data from

the distributors of Patna under the organization itself.

Data – Sources

Retailers/Dealers (Cold Drinks stalls Ice Stalls Hotels Restaurants Sweet Shop Pan Shop,

General Stores, Telephone Booths etc), Distributor internal Company’s Records etc.

Research – Approaches

Survey

Research-Instrument :

Interview Schedule

Sampling – Plan :

Sampling unit Distributor Retailer

Sampling size 01 80

Sampling procedure:

Census Survey

34

Contact method:

Personal Interview.Secondary Data Collection :

The secondary data was collection on the basis of organizational files, official bulletins and

records, official journals, published data in the annual general report and through various

preserved information in the data base at the Pepsi sites e.g. www.Pepsico.com,

www.Pepsizone.com etc

Primary Data Collection:

All the dealers/retailers were personally visited and interviewed. There was a format for

collecting the details the details of the dealers. The format was filled by taking the

information from the dealer or by monitoring the shops.

5.2 DEALER-SURVEY

Dealer-Survey as the word indicates, is the survey of soft drinks of every dealer in the

area. For our practical purpose the dealer nt only includes the authorized dealers but, it

includes all the retailers-big or small grocery shops, stationery, restaurants, beetel shop

etc., Besides these the various exclusive stalls and sales of pantry cars are also included in it.

In a nutshell, by dealer survey I mean who are dealing with the soft dink in someway or

the othe in large or small quantity directly or indirectly.

Thus, my study includes all such dealers, which include following aspects:

Route wise no of dealers

Crate strength

Per day sale

35

Chilling ad

Advertising

Nature of outlet

Schemes of Pay-offs.

I have to visit each and every outlet and personally interviewed them. In order to know the

market share of PEPSI and its competitors. I have conducted a survey at Patna and its

surroundings area. By the help of survey I can find out the reason behind non-availability of

Pepsi in the specified area.

The knowledge of case-stock indicates our “case-in-trade” and that of competitors. This will

indicate our “case-velocity” which will help to plan our bottle as whether our distribution is

effective or not. If my case-stock is low then I may decide for a “case stocking campaign”.

Feedback from the market place regarding servicing of dealers will help us to improve our

servicing in the lacked areas.

Therefore, appropriate marketing strategy can be woked out depending upon the findings.

Some more uses of Dealer-Survey:

(i) Distribution-effectiveness:

The survey can improve the distribution network in these ways:

Immediate activation of non-buyers.

Improve the dealer coverage

Increase the realignment of routes

Better control through route card

They should visit the counter on the daily basis

including the remote places.

36

Salesman should visit the counter on likely basis.

(i) Market knowledge:

Dealer-Survey gives the total profit of the market by following:

Location of dealers

The type of dealer

No of dealers who keep Pepsi Coca-Cola and comparing the stock.

The marketing inputs with respect to—

a) Advertising

b) VISI Cooler

c) Servicing

(ii) Training group for future executives:

Good investigations from these surveys can be recruited to take up future jobs. These people

will ideally suitable, as they would know the market thoroughly.

5.4 LIMITATIONS OF THE RESEARCH

1) It was not possible to understand thoroughly about the different marketing aspects of soft

drinks in a span of two months.

2) The survey was conducted in the peak season when the sale was too high, by this I

cannot get the appropriate result.

37

3) Money-as no stipend was given, it was difficult to cover a wide area.

4) All the work was limited in Patna area, so, the findings should not be generalized. The

finding of survey will be strictly based on the response of consumers, retailers/dealers,

since it is difficult to ascertain the authenticity of their statement.

38

CHAPTER-6

DATA ANALYSIS AND INTERPRETATION

6.1 OVERALL MARKET SHARE ANALYSIS

6.2 OVERALL VISI AND SIGNAGE AVAILIBLITY

6.3 FLAVOUR WISE S.K.U. AVAILABLITY ANALYSIS

39

6.1 OVERALL MARKET SHARE ANALYSIS

Area:- I.O.C. ROAD, SHIPARA ROAD, JAKKANPUR, PURANDARPUR,

MITHAPUR, GAURIA MATH & JANTA ROAD.

Sample Size:- 30

OVERALL MARKET SHARE

PEP VS. COKETOTAL EMPTY PEPSI COKE PEPSI % COKE %

1389 452 937 33% 67%

PCI CCX

GLASS CRATES

452

937

GLASS CRATES AVAILIBLITYSeries1 Series2 Series3

40

33%

67%

OVERALL MARKET SHAREPEPSI % COKE %

6.2 OVERALL VISI AND SIGNAGE AVAILIBLITY

PCI

CCXVISI

19 23

VISI AVAILIBLITYSeries1 Series2 Series3

41

DB GS DB GSPCI CCX

SIGNAGE

9

0

12

1

SIGNAGE AVAILIBLITYSeries1 Series2

6.3 FLAVOUR ANS PACK SIZE WISE S.K.U. AVAILABLITY ANALYSIS

PEPTU

COKECOLA

18

45 49

S.K.U. AVAILIBLITY OF COLA FLAVOUR IN SINGLE SERVE

Series1

42

7UP SPRITE DEWCL LEM.

31

72

39

S.K.U. AVAILIBLITY OF CL LEM. FLAVOUR IN SINGLE SERVE

Series1

MAZA SLICE

MANGO

2

20

S.K.U. AVAILIBLITY OF MANGO FLAVOUR IN SINGLE SERVE

Series1

43

MO FANTA

ORANGE

13

0

S.K.U. AVAILIBLITY OF ORANGE FLAVOUR IN SINGLE SERVE

Series1

PEP TU COKE

COLA

2734

30

S.K.U. AVAILIBLITY OF COLA FLAVOUR IN OTG

Series1

44

7UP SPRITE DEW

CL LEM.

29

66

34

S.K.U. AVAILIBLITY OF CL LEM. FLAVOUR IN OTG

Series1

MAZA SLICE

MANGO

36

0

S.K.U. AVAILIBLITY OF MANGO FLAVOUR IN OTG

Series1

45

MO FANTA

ORANGE

6

2

S.K.U. AVAILIBLITY OF ORANGE FLAVOUR IN OTG

Series1

PEP TU COKE

COLA

8

4035

S.K.U. AVAILIBLITY OF COLA FLAVOUR IN MULTI SERVE

Series1

46

7UP SPRITE DEW

CL LEM.

32

70

27

S.K.U. AVAILIBLITY OF CL LEM. FLAVOUR IN MULTI SERVE

Series1

MAZA SLICE

MANGO

7

45

S.K.U. AVAILIBLITY OF MANGO FLAVOUR IN MULTI SERVE

Series1

47

MO FANTA

ORANGE

8

27

S.K.U. AVAILIBLITY OF ORANGE FLAVOUR IN MULTI SERVE

Series1

48

Chapter – 7

1. CONCLUSIONS

2. SUGGESTIONS

49

7.1 CONCLUSIONS

1. The whole analysis shows that there are only two companies dominating in the soft

drink’s market – Pepsi Cola and Coca – Cola. There is neck –to- neck competition in

between these companies.

2. Pepsi has invested more in the market. Distribution of – VISI Coolers and display

of Glow Signs board is less than that of Coca – Cola but still more investment is

needed to break the brand estalishment of Thumps Up and Sprite.

3. All the areas in Danapur, Patna. almost all the retailers are satisfied with the

distribution network of the Pepsi product.

4. Most of the retailers want glow signboard and chilling equipments, which they

are asking from long time.

5. In Cola segment Thumps-up and in lime segment sprite is the main competitors

of Pepsi

6. Most of the Consumers don’t like the taste of Pepsi due to its sweetness and

low fizz.

7. All the products of Pepsi like 7up, & Dew is not provided when the retailers

demand it.

50

SUGGESTIONS

1. Pepsi should come out with such an advertisement, which can block the

customers’ mind and can change the customers’ perception about the product

2. Pepsi is sweet and low fizz soft drinks that everybody knows and so lots of

people do not like, so to cacth the customers, Pepsi should come out with more

fizz like Thums up.

3. Company executives should visit the counter on regular basis.

4. Executives should take the feedback from the retailers about the service of the

salesman and the distributors.

5. Salesman should have better interaction with the retailers which results in

increase in sales.

6. The criteria to provide Glow Signboard, Flax board , VISI Cooler, and OYC

should be changed and a separate department should handle this.

7. All the Pepsi products should be provided at required level to snatch the

competitor’s market e.g. 7up for Sprite, Mirinda for Fanta and Slice for Mazzaa

which is dominating the market a present.

51

ANNEXURES

GLOSSARY OF THE TERMS

QUESTIONNAIRE

BIBLIOGRAPHY

DATA COLLECTION SHEET

GLOSSARY OF THE TERMS

FOBO - Franchise Owned Bottling Operation.

COBO - Company Owned Bottling Operation.

FMCG - Fast Moving Consumer Goods.

MNCs - Multinational Companies.

MMM - Master of Marketing Management.

52

QUESTIONNAIRE

Name of the outlet : ..................................................................

Address : .......................................................................

l .Q. Which brand of soft drinks you deal in ?

(a) Pepsi-Cola (b) Coca-cola

(c) Both (d) Other

2.Q. Which brand of cola provides you better facility ?

(a) Pepsi-Cola (b) Coca-cola (c) Both

3.Q. How many crates of Pepsi-Cola & Coca-Cola you sell/day ?

(a) 0-1 crates (b) 1-2 crates

(c) 2-3 crates (d) 3 & above

53

4.Q. Which company’s signage you have in your outlet ?

(a) Pepsi (b) Coca-Cola

(c) Both (d) No signage

5.Q. Which type of Signage in your outlet ?

(a) Flex-Board (b) Dealer Board

(c) Glow Sign Board (d) Both

6.Q. Which company’s visi - cooler & Oyc you have in your outlet?

(a) Pepsi-Cola (b) Coca-Cola

(d) both (c) Own

7.Q. In your openion which medium is more effective for the sales advertisment ?

(a) Television (b) Magazines/Newspapers

(c) Display (d) Wall paintings/Hoardings

8.Q. Do you think that aggressive advertising further help you to increase the sales volume of Cola ?

(a) Yes (b) No

9.Q. What kind of promotional activities do you like most ?

(a) Free bottle scheme (b) Prize

(c) Discount Crates (d) Other ……….

54

10.Q. Your recommendation for further sales impromment in your locality ?

...................................................................................

11.Q. Give me two suggestion for betterment of Pepsi-Cola ?

(a) ………… (b) …………

12.Q. what is the capacity of your visicooler?

(a) 110 (b) 180 (c) 220

(d) 320 (e) 400 (f) 1200

BIBLIOGRAPHY

REFERENCE BOOKS

Concepts of Marketing:

Kotler Philip, Marketing Management, 11th edition, Prentice hall of India Pvt. Ltd.

Ramaswamy And Namakumari, Marketing Management, 3rd Edition, Macmillan

India Ltd.

G.C.Beri, Marketing Research 3rd edition, Me Milan India Ltd.

News Paper & Magzines

Economic Times

55

Websites:

www.Pepsico.com

www.Pepsizone.com

DATA COLLECTION SHEET

56

PEPSI OFFTAKE AND CHILLED COUNT DATA COLLECTION SHEET

EC

E C

EC

EC

EC

EC

EC

EC

EC

EC

123456789101112131415

Mazza

CokeSlice

Mri. Org.

Mou. Due

ThumsUp

SpriteFanta

S. No.Nam

e of retailer

Cooler Off Take and chilled count of PEPSI

Off Take and Chilld count of COKE

TOTAL

PEPSICOKE

PEPSI7UP

57

Pepsi Project

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