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“STUDY OF DISTRIBUTION CHANNEL STRATEGY OF PEPSICO FOR THE POSITIONING OF THE PRODUCT IN VARANASI”  A DISSERT A TION REPORT MANGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY GREATER NOIDA, MBA BATCH- 2009-2011   SUBMITTEDTO: -  SUBMITTED BY :-  NEERAJ KUMAR SINGH ANIL KUMAR MISHRA (CUSTOMER EXECUTIVE)
107

Prince Summer Project

Apr 10, 2018

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“STUDY OF DISTRIBUTION CHANNEL

STRATEGY OF PEPSICO FOR THE

POSITIONING OF THE PRODUCT INVARANASI”

 A DISSERTATION REPORT 

MANGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY 

GREATER NOIDA,

MBA BATCH- 2009-2011

 

 SUBMITTEDTO: -  SUBMITTED BY :-

  NEERAJ KUMAR SINGH ANIL KUMAR MISHRA

(CUSTOMER EXECUTIVE)

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 DECLARATION 

I hereby declare that the project entitled “ STUDY OF

DISTRIBUTION CHANNEL STRATEGY OF THE PEPSICO

FOR THE POSITIONING OF THE PRODUCT ” was done

by me under the guidance of Miss JAYA JAIN, faculty 

MANGALMAY INSTITUTE OF MANAGEMENT &

TECHNOLOGY,GREATER NOIDA, , in partial fulfillment of 

the requirement for the award of the degree of Post 

Graduate Program in Master Of Business

 Administration.

I assure that the work is original and has not been

submitted earlier to this Institute or to any other 

institution.

 ANIL KUMAR MISHRA

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 ACKNOWLEDGEMENT 

There is always a sense of gratitude one expresses to

others for the helpful and needy service they render 

during all phases of life. I have completed this

Project with the help of different personalities. I wish

to express my gratitude towards all of them.

I am highly indebted to NEERAJ SINGH (Customer 

Executive) for providing me an opportunity to work 

for the dissertation on wonderful topic “STUDY OF

DISTRIBUTION CHANNEL STRATEGY OF PEPSICO FORTHE POSITIONING OF THE PRODUCT ”

Lastly I would like to thank my parents and friends

for their constant support during the duration of my 

Dissertation.

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Table of Content 

Research Title 1

Declaration 2

Acknowledgement 3

Literature Review 1-2

Objective 3

Summary about the company 4-20

Marketing overview of PepsiCo in India 21-31

Sales and Distribution network of PepsiCo 31-34

Sales and Marketing Hierarchy of PepsiCo 35-40

Five forces effecting the environment 41-43

Research Methodology 44-63

Limitation 64

SWOT Analysis 65 - 67

Observations 68

Findings 69

Recommendations 70-71

Conclusion 72

Bibliography 73

Questionnaire 74-75

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 LITERATURE REVIEW 

PepsiCo is one of the oldest, largest and most 

successful beverage and snack food companies in the

world. PepsiCo was founded by Caleb Bradham in

1902 in USA. Today PepsiCo and its affiliates operate

in more than 140 countries in the world and generate

revenues in excess of $ 40 Billion. In its pursuit of 

never ending growth and expansion, PepsiCo entered 

India in 1989 in a joint venture with Punjab

Government. However, PepsiCo India very soon

started its beverage operations in collaboration with

the R K Jaipuria group.

Soon after entering the beverage segment PepsiCo

Established its dominance in the market owing to itsexpertise in sales, marketing, operations and local 

collaboration. PepsiCo maintained its market 

dominance for many more years to come. However,

this advantage slipped and PepsiCo had to concede

the market leadership to Coca Cola India. Several 

actors were responsible for this development. But,

the most important are;

Distribution channel is having an important role in

  positioning of the product because we know that 

distribution channel is tool by which we can make

reach our product to the final consumers

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Discontinuation of slums in the distribution network 

by PepsiCo. This move by PepsiCo adversely affected 

its position of a market leader because while PepsiCo

discontinued the use of Slums in its distribution

network, Coke continued it and within one year, it 

was able to snatch considerable market share from

PepsiCo.

  Acquisition of well-established and favored brands

like Thumps Up and Limca by Coca Cola India. These

two brands still constitute a bulk of sales for Coca

Cola India.

To explore the reasons behind these developments

this study will analyze the marketing initiatives and 

  policies of PepsiCo India in detail with particular 

focus on its partner relationship management.

The above-mentioned objectives can be achieved by 

carrying a proper and planned research involving

different types and methods. The data collected for laid the foundations for the study and gave a

 platform for the analysis and findings which lead to

the fulfillment of the objectives.

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The data collected for research is primary and 

secondary. Primary data is collected by observation,

interviews and questionnaires. The data collection

and analysis paves way for the recommendation ad 

conclusion of the study that reveals some important 

findings regarding the strategy and corporate

structure and strategy of PepsiCo India.

OBJECTIVE OF PROJECT 

To know distribution channel Strategy of 

PepsiCo.

To know the importance of Distribution channel 

strategy in Positioning of the product.

Sub Objective:

To know the PepsiCo planning towards the

distribution channel strategy.

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How strong relationship PepsiCo has with the

distributors and retailers.

Perception of consumer towards the PepsiCo

 product.

Perception of retailers towards the distribution

channel of the PepsiCo.

 Summary about the company

Type : Public (NYSE: PEP)

Founded : Chicago, Illinois, U.S. (1965)

Headquarters : Purchase, New York, U.S.

Area served : Worldwide

Key people : Indra Krishnamurthy Nooyi (Chairwoman), (President) & (CEO) 

Industry : Food Non-alcoholic beverage

Products :Pepsi

Diet Pepsi

Mountain Dew

Sierra Mist

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StarbucksFrappuccino

LiptIcedTea

7up

Izze

Tropicana Products

Copella

Naked Juice

Gatorade

PropelFitnessWater 

Quaker Oats

Lay's

Doritos

Cheetos

FritosRoldGold

Ruffles

Tostitos

Slice

  Nimbooz

 Revenue : ▲ USD 43.251 Billion (2010)

Operating income : ▲ USD 6.935 Billion (2010)

 Net income : ▲ USD 5.142 Billion (2010)

Total assets : ▲ USD 35.994 Billion (2010) 

Total equity : ▲ USD 12.106 Billion (2010) 

Employees : 185,000 (2010) 

Divisions : PepsiCo Americas (PepsiCo Americas Food, PepsiCo Americas

Beverages), PepsiCo International

Website : PepsiCo.com

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 History of the company

It was first introduced in North Carolina in 1898 by 

Caleb Braham who made a pharmacy which sold the

drink which was known back then as "Brad's Drink",

and was later named Pepsi Cola possibly due the

digestive enzyme pepsin and kola nuts used in therecipe. Braham sought to create a fountain drink that 

was delicious and would aid in digestion and boost 

energy.

In 1903, Braham moved the bottling of Pepsi-Cola

from his drugstore into a rented warehouse. That 

year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales

increased to 19,848 gallons. In 1926, Pepsi received 

its first logo redesign since the original design of 

1905. In 1929, the logo was changed again. In 1929,

automobile race pioneer Barney Oldfield endorsed 

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Pepsi-Cola in newspaper ads as "A bully 

drink...refreshing, invigorating, a fine bracer before a

race".

In 1931, the Pepsi-Cola Company went bankrupt 

during the Great Depression- in large part due tofinancial losses incurred by speculating on wildly 

fluctuating sugar prices as a result of World War I.

  Assets were sold and Roy C. Megargel bought the

Pepsi trademark. Eight years later, the company went 

bankrupt again. Pepsi's assets were then purchased 

by Charles Guth; the President of Loft Inc. Loft was a

candy manufacturer with retail stores that contained 

soda fountains. He sought to replace Coca-Cola at his

stores' fountains after Coke refused to give him a

discount on syrup. Guth then had Loft's chemists

reformulate the Pepsi-Cola syrup formula.

During the Great Depression, Pepsi gained popularity 

following the introduction in 1936 of a 12-ounce

bottle. Initially priced at 10 cents, sales were slow,

but when the price was slashed to five cents, sales

increased substantially. With a radio advertising

campaign featuring the jingle "Pepsi cola hits the

spot Twelve full ounces, that's a lot / Twice as much

for a nickel, too Pepsi-Cola is the drink for you,"

arranged in such a way that the jingle never ends.

Pepsi encouraged price-watching consumers to

switch, obliquely referring to the Coca-Cola standard 

of six ounces per bottle for the price of five cents (a

nickel), instead of the 12 ounces Pepsi sold at the

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same price. Coming at a time of economic crisis, the

campaign succeeded in boosting Pepsi's status. In

1936 alone 500,000,000 bottles of Pepsi were

consumed. From 1936 to 1938, Pepsi-Cola's profits

doubled.

1940s advertisement specifically targeting African

Americans.

Pepsi's success under Guth came while the Loft Candy 

business was faltering. Since he had initially used 

Loft's finances and facilities to establish the new

Pepsi success, the near-bankrupt Loft Company sued 

Guth for possession of the Pepsi-Cola company. A

long legal battle, Guth v. Loft, then ensued, with the

case reaching the Delaware Supreme Court and 

ultimately ending in a loss for Guth.

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 Pepsi c o in India

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 Limited. This joint venture marketed and sold 

Lehar Pepsi until 1991, when the use of foreign

brands was allowed; PepsiCo bought out its partners

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and ended the joint venture in 1994. Others 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 "India's

sometimes acrimonious relationship with huge

multinational companies." Indeed, some argue that 

PepsiCo and The Coca-Cola Company have "been

major targets in part because they are well-known

foreign companies that draw plenty of attention."

In 2003, the Centre for Science and Environment 

(CSE), a non-governmental organization in New Delhi,

said aerated waters produced by soft drinks

manufacturers in India, including multinational giants

PepsiCo and The Coca-Cola Company, contained 

toxins, including lindane, DDT, malathion and 

chlorpyrifos — pesticides that can contribute to

cancer, a breakdown of the immune system and 

cause birth defects. Tested products included Coke,

Pepsi, 7 Up, Mirinda, Fanta, Thums Up, Limca, and 

Sprite. CSE found that the Indian-produced Pepsi's

soft drink products had 36 times the level of pesticide

residues permitted under European Union

regulations; Coca Cola's 30 times. CSE said it had 

tested 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.

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The Coca-Cola Company and PepsiCo angrily denied 

allegations that their products manufactured in India

contained toxin levels far above the norms permitted 

in the developed world. But an Indian parliamentary 

committee, in 2004, backed up CSE's findings and a

government-appointed committee, is now trying to

develop the world's first pesticides standards for soft 

drinks. Coke and PepsiCo opposed the move, arguing

that lab tests aren't reliable enough to detect minute

traces of pesticides in complex drinks. On December 

7, 2004, India's Supreme Court ruled that both

PepsiCo and competitor The Coca-Cola Company must 

label all cans and bottles of the 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 accused by the

Puthussery panchayat in the Palakkad district in

Kerala, India, of practicing "water piracy" due to its

role in exploitation of ground water resources

resulting in scarcity of drinking water for the

 panchayat's residents, who have been pressuring the

government to close down the PepsiCo unit in the

village.

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In 2006, the CSE again found that soda drinks,

including both Pepsi and Coca-Cola, had high levels of 

 pesticides in their drinks. Both PepsiCo and The Coca-

Cola Company maintain that their drinks are safe for 

consumption and have published newspaper 

advertisements that say pesticide levels in their 

 products are less than those in other foods such as

tea, fruit and dairy products. In the Indian state of 

Kerala, sale and production of Pepsi-Cola, along with

other soft drinks, was banned by the state

government in 2006, but this was reversed by the

Kerala High Court merely a month later. Five other 

Indian states have announced partial bans on the

drinks in schools, colleges and hospitals.

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 Marketing Strategy of Pepsi 

In 1975, Pepsi introduced the Pepsi Challenge

marketing campaign where PepsiCo set up a blind 

tasting between Pepsi-Cola and rival Coca-Cola.

During these blind taste tests the majority of 

 participants picked Pepsi as the better tasting of thetwo soft drinks. PepsiCo took great advantage of the

campaign with television commercials reporting the

test results to the public.

In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the

first female Pepsi salesperson, Denise Muck, to

coincide with the United States bicentennial celebration.

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Pepsi logo (1973-87). In 1987, the font was modified

slightly to a more rounded version which was used

until 1991.

In 1996, PepsiCo launched the highly successful Pepsi 

Stuff marketing strategy. By 2002, the strategy wascited by Promo Magazine as one of 16 "Ageless

Wonders" that "helped redefine promotion

marketing."

In 2007, PepsiCo redesigned their cans for the

fourteenth time, and for the first time, included more

than thirty different backgrounds on each can,introducing a new background every three weeks.

One of their background designs includes a string of 

repetitive numbers 73774. This is a numerical 

expression from a telephone keypad of the word 

"Pepsi."

Pepsi’s logo (2003-09. Currently using with Pepsi Wild

Cherry and Pepsi ONE)

In late 2008, Pepsi overhauled their entire brand,

simultaneously introducing a new logo and a

minimalist label design. The redesign was comparable

to Coca-Cola's earlier simplification of their can and 

bottle designs. Due to the timing of the new logo

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release, some have criticised the logo change, as the

new logo looked strikingly similar to the logo used for 

Barack Obama's successful presidential campaign,

implicating a bias towards the President.  Also in 4th

quarter of 2008 Pepsi teamed up with

Google/Youtube to produce the first daily 

entertainment show on Youtube. This daily show

deals with pop culture, internet viral videos, and 

celebrity gossip. Poptub is refreshed daily from Pepsi.

Since 2007, Pepsi, Lay's, and Gatorade have had a

"Bring Home the Cup™," contest for Canada's biggest 

hockey fans. Hockey fans were asked to submit 

content (videos, pictures or essays) for a chance at 

winning a party in their hometown with The Stanley 

Cup and Mark Messier.

In 2009, "Bring Home the Cup™," changed to "Team

Up and Bring Home the Cup™." The new installment 

of the campaign asks for team involvement and an

advocate to submit content on behalf of their team

for the chance to have the Stanley Cup delivered to

the team's hometown by Mark Messier.

Pepsi has official sponsorship deals with three of the

four major North American professional sports

leagues: the National Football League, National 

Hockey League and Major League Baseball. Pepsi also

sponsors Major League Soccer.

Pepsi also has sponsership deals in international 

cricket teams. The Pakistan cricket team are just one

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of the teams that the brand sponsers. The team

wears the Pepsi logo on the front of their test and 

ODI test match clothing.

 Slogans of Pepsi 

• 1939-1950: "Twice as Much for a Nickel"

• 1950: "More Bounce to the Ounce"

• 1950-1957: "Any Weather is Pepsi Weather"

• 1957-1958: "Say Pepsi, Please"

• 1958-1961: "Be Sociable, Have a Pepsi"

• 1961-1963: "Now It's Pepsi for Those Who Think 

Young"

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• 1963-1967: "Come Alive, You're in the Pepsi 

Generation".

• 1967-1969: "(Taste that beats the others cold)

Pepsi Pours It On".

• 1969-1975: "You've Got a Lot to Live, and Pepsi's

Got a Lot to Give"

• 1977-1980: "Join the Pepsi People (Feeling Free)"

• 1980-1981: "Catch That Pepsi Spirit" David Lucas

composer 

• 1981-1983: "Pepsi's got your taste for life"

• 1983-1984: "Pepsi Now! Take the Challenge!"

• 1984-1991: "Pepsi. The Choice of a New

Generation" (commercial with Michael Jackson,

featuring Pepsi version of Billie Jean)

• 1986-1987: "We've Got The Taste" (commercial 

with Tina Turner)• 1987-1990: "Pepsi's Cool" (commercial with

Michael Jackson, featuring Pepsi version of Bad)

• 1990-1991: "You got the right one Baby UH HUH"

( sung by Ray Charles for Diet Pepsi )

• 1991-1992: "Gotta Have It"/"Chill Out"

• 1992-1993: "Be Young, Have Fun, Drink Pepsi"

• 1993-1994: "Right Now” Van song for the Crystal 

Pepsi advertisement.

• 1994-1995: "Double Dutch Bus" Pepsi song sung

by Brad Bentz.

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• 1995: "Nothing Else is a Pepsi"

• 1995-1996: "Drink Pepsi. Get Stuff." Pepsi Stuff 

campaign

• 1996-1997: "Pepsi: There’s nothing official about 

it" (During the Wills World Cup (cricket) held in

India/Pakistan/Sri Lanka)

• 1997-1998: "Generation Next" - with the Spice

Girls.

• 1998-1999: "It's the cola" (100th anniversary 

commercial)

• 1999-2000: "For Those Who Think Young"/"The

 Joy of Pepsi-Cola" (commercial with Britney 

Spears/commercial with Mary J. Blige)

• 2000-2003: "Aazadi dil ki" (Hindi - meaning

"Freedom of the Heart")(India)

• 2003: "It's the Cola"/"Dare for More" (Pepsi 

Commercial)

• 2003-2005: "Yeh Pyas Hai Badi" (Hindi meaning

"This thirst is too much")(India)

• 2005-2006: "An ice cold Pepsi. It's better than

sex!" (Larry Sypolt)

•2006-2007: "Why You Doggin' Me"/"Taste the onethat's forever young" Commercial featuring Mary 

 J. Blige

• 2007-2008: "More Happy"/"Taste the once that's

forever young" (Michael Alexander)

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• 2008: "Yeh hai Youngistaan Meri Jaan!" (Hindi)

(Urdu - meaning "This is the Young era my dear"

(India and Pakistan)

• 2008: "Pepsi Stuff" Super Bowl Commercial 

(Justin Timberlake)

• 2008: " Р epsi is #1" Т v commercial (Luke Rosin)

• 2008: "Pepsify karo gai!" Commercial (Urdu

(Hindi - meaning "Wanna Pepsify!") (Pakistan)

(Featuring. Adnan Sami and Annie)

• 2008-2009: "Something for Everyone."

• 2009-present: "Refresh Everything" and (during

many commercials) "Every Generation Refreshes

The World"

 Pepsi Input – Processing – Output Model 

Input 

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Supply 

1. Manage supply ingredients to ensure availability 

to produce products.

2. Maintain purified water supply for quality and 

availability to produce products.

Manufacturing

1. Ensure best technology is available to produce

 products and mix ingredients.

2. Ensure quick storage and inventory processes to

maintain freshness and quality.

Sales

1. Determine demand by past sales and future

marketing.

2. Adjust quantities produced in real time to meet 

appropriate demand.

Output 

Supply 

1. Determine inventory of ingredients to order new

supplies.

2. Maintain purified water supply so ensure

continuance of production.Manufacturing

1. Ensure proper packaging to ensure quality and 

freshness in products.

2. Maintain quick local distribution to ensure

freshness and quality products.

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Sales

1. Keep positive distribution levels to all sales

outlets to maintain positive sales.

2. Meet any new demand or competition with

 products and consumer needs.

 EVERY DELAR SURVEY {EDS}OF SRI LUXMI SUB -DISTRIBUTER OF PEPSICO

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 Pepsi’s Mission

SUBLOCALITY LOCALITY

PCIVISI

CCXVISI

VEHICLEPCI

VEHICLECCX TOTAL SALE

Near D.A.V Ausanganj Yes Yes 6 5 90

Near D.A.V Ausanganj Yes No 6 No 40

Near D.A.V Ausanganj Yes No 6 No 35

Digia Chauraha Ausanganj P No 6 No 30

Digia Chauraha Ausanganj Yes Yes 6 5 10

Digia Chauraha Jaitpura P Yes 6 5 10

Digia Chauraha Jaitpura No Yes 2 2 10

Digia Chauraha Jaitpura Yes Yes 3 3 40

Digia Chauraha Jaitpura No Yes 3 3 10

Thana Jaitpura Jaitpura Yes Yes 3 3 10

Thana Jaitpura Jaitpura P Yes 3 3 10

Thana Jaitpura Jaitpura No Yes 3 3 20

Thana Jaitpura Jaitpura P Yes 3 3 10

Thana Jaitpura Jaitpura P No 3 3 5

Nagkua, Jaitpura Jaitpura Yes No 3 3 5

Nagkua, Jaitpura Jaitpura Yes No None 3 20

Kajipura Badi Bazar Yes No 4 No 40

Kajipura Badi Bazar Yes No 4 No 20

Kajipura Badi Bazar Yes No 4 No 40

Bismila Katra Badi Bazar Yes No 3 No 50

Badi Bajar Badi Bazar Yes No 3 No 120

Chavi Mahal Chavi Mahal Yes Yes 4 No 30

Chavi Mahal Chavi Mahal Yes Yes 4 No 40

Cotton Mil Gate Cotton Mil Gate Yes No 4 No 60

Cotton Mil Gate Cotton Mil Gate P No 4 No 40

Near D.A.V Ausanganj Yes No 4 No 8

Near D.A.V Ausanganj Yes No 3 5 48

Near D.A.V Ausanganj No Yes 3 5 20

Near D.A.V Ausanganj No P 3 2 5

Near D.A.V Ausanganj Yes Yes 3 3 60

Digia Chauraha Ausanganj Yes P 4 3 10

Behind Masjid Rajapura IB No 1 \4 1 \4 30

Behind Masjid Ausanganj Yes No 1 \4 No 10

Near D.A.V Ausanganj Yes No 5 5 60

Near D.A.V Ausanganj Yes No 5 No 8

Digia Chauraha Ausanganj Yes Yes 5 5 8

Digia Chauraha Ausanganj Yes Yes 5 5 20

Digia Chauraha Ausanganj P No 5 No 16

Digia Chauraha Ausanganj Yes No 5 No 56

Basti IswarGangi P No 5 No 16

Basti IswarGangi P No 5 No 12

Basti IswarGangi P No 5 No 8

Basti IswarGangi Yes No 5 No 28

Basti IswarGangi P P 5 No 30

Basti IswarGangi P No 5 No 20

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The mission of Pepsi is 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.

Pepsi has grown faster than both the S&P 500 and 

their industry group over the past four years. 2003

alone was a strong year. Their overall volume grew

by 5%. Division net revenue grew by 8%. Division

operating profit grew by 10%. Total return to

shareholders was 12%. Earnings per share grew by 

22%. They have six of the fifteen largest-selling

brands in U.S Supermarkets. And, around the world,

sixteen of their brands sell more than one billion

dollars each at retail.

Pepsi is also very concerned about the environment 

and has a separate set of goals. Our goal is to have

the least possible impact on the environment and so

far we have been very successful. For example, in

1992 Pepsi-Cola replaced its can holders with plasticring connectors. Using a break-apart concept, these

rings snap when cans are removed from the

connectors, greatly reducing the risk of entanglement 

for wildlife. In addition, photo-degradable additives

break down these connectors into small particles

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when they are exposed to sunlight, further reducing

the likelihood of any negative environmental impact.

In 1995, Pepsi was one of only 20 companies honored 

by the U.S. Environmental Protection Agency (EPA).

EPA Administrator Carol Browner called the efforts of 

Pepsi to reduce solid waste "a notable achievement."

  A third goal of Pepsi is to achieve a diverse

workforce. Pepsi knows that understanding different 

cultures is a major advantage. They view diversity as

a key to their future. They see that offering a

workplace where diversity is valued helps them build 

the top-quality workforce so crucial to their success

by enabling them to attract and retain great people

from a wide spectrum of backgrounds. Their CEO

offers this quote, “PepsiCo has long been dedicated 

to instilling the broadest possible base of diversity 

within our own company and among the companies

who serve us, and is a strong advocate of diversity 

within our communities.” This intense dedication to

diversity has led to many awards that include being

named a top 50 company for diversity by 

DiversityInc. Fortune magazine ranked Pepsi number 

nine for best companies for minorities.

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 Business Views

These are the three different views to explain Pepsi 

in terms of relevance, accuracy, timeliness,exclusiveness, and accessibility.

MARKETING VIEW-: The marketing view is the

backbone of business dimension in case study of 

Pepsi. In order to make a firm successful in the

marketplace this view must penetrate all the other 

views together. Introducing new ways to approach

the market or launching a new product needs good 

understanding of the target population, which is done

through the marketing view. It forecasts and plans

the different components in the business dimension

that are going to affect the future of the company.

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Through the marketing view Pepsi tries to reach to its

existing as well as future customers. A competent 

market strategy is very important in today’s

competitive market; especially for a multinational 

company like, Pepsi. Narrowing down its different 

  products towards different type of population, for 

example, Sprite among buyers for various products

within the company. Advertising is a very vital part in

the marketing view because it brings the consumers

and Pepsi together which determines the demand.

PRODUCT VIEW-: The product view of Pepsi reflects

the launch of new products every six months. As seen

among these globally operating beverage companies,

Pepsi and Coke, in order to stay competent in the

market they invent new products to

attract more customers and please the existing ones.

If Pepsi does not try hard in experimenting new

  products they know someone else could steal the

market with similar ideas. If there is no product,

there is no business. Therefore, in order to dominant 

the market globally as well as in the U.S., Pepsi 

comes with different flavors or even changes the

looks of bottles. Pepsi has wide variety of beverageslike soft drinks, juices, water, and energy drinks. This

company started with just plain soda and since then

has been trying to add more products to its existing

line. If you look according to the accessibility view

you can also see those vending machines everywhere

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for your conveniences.

LOGISTIC VIEW-: The logistic view is a very important 

 part of the globally 

operating companies. For Pepsi, to have bottling

 plants in all the countries they sell the products is

necessary. By doing this, there exists a well-

established connection between the suppliers,

  producers, distributors and consumers. Pepsi 

Company’s organization is divided into four areas

covering Asia, Africa, Europe and America. These four 

subdivisions are further narrowed among the

countries in these continents. The inter- organization

structure of the company has different divisions. The

manufacturing plant makes and bottles the product,

the distributors deliver to the suppliers, and the

suppliers sell it to the retailers and finally to the

consumers. These supply–chains in different countriesare controlled by one main headquarter.

In the Market

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1.

2. 3.

  Above figure shows the market share of the

beverages players.

First figure shows that thums up has the largest 

market share in top five soft drink players. And limca

got the fifth rank. Pepsi is on the 3rd 

rank with 13.2%market share.

Second figure shows the market share covered by 

beverage players. In the market coke is on 1st  rank 

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with the 38% of market share and Pepsi has 21.4%

market share.

Third figure shows the battle between the product of 

different brand but same flavor. In this war of soft 

drink in between Pepsi and thums up thums up has

won this war by 15.7% of market share, Pepsi has

only 13.2% of market share in cola market.

 PEPSICO INDIA WITH RKJ GROUP:

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Vision

Being the best in everything we touch and handle.

 MissionContinuously excel to achieve and maintain

leadership position in the chosen businesses; and 

delight all stakeholders by making economic value

additions in all corporate functions.

It can be said with absolute certainty that the RKJ

Group has carved out a special niche for itself. Our 

services touch different aspects of commercial and 

civilian domains like those of Bottling, Food Chain

and Education. Headed by Mr. R. K. Jaipuria, the

group as on today can lay claim to expertise and 

leadership in the fields of education, food and 

beverages.

The business of the company was started in 1991

with a tie-up with Pepsi Foods Limited to manufacture

and market Pepsi brand of beverages in

geographically pre-defined territories in which brand 

and technical support was provided by the Principals

viz., Pepsi Foods Limited. The manufacturing facilities

were restricted at Agra Plant only.

Varun Beverages Ltd. is the flagship company of the

group.The group also became the first franchisee for 

Yum Restaurants International [formerly PepsiCo

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Restaurants (India) Private Limited] in India. It has

exclusive franchise rights for Northern & Eastern

India. It has total 46 Pizza Hut Restaurants & 1 KFC

Restaurant under its company.

The group added another feather to its cap when the

  prestigious PepsiCo “International Bottler of the

Year” award was presented to Mr. R. K. Jaipuria for 

the year 1998 at a glittering award ceremony at 

PepsiCo’s centennial year celebrations at Hawaii,

USA. The award was presented by Mr. Donald M.

Kendall, founder of PepsiCo Inc. in the presence of 

Mr. George Bush, the 41st President of USA, Mr.

Roger A. Enrico, Chairman of the Board & C.E.O.,

PepsiCo Inc. and Mr. Craig Weatherup, President of 

Pepsi Cola Company.

Strategic Divisions:

PepsiCo India consists of different divisions that 

include Beverage division, Snack food division and 

the Restaurant division (Yum Restaurants India Pvt.

Ltd.). These divisions work as separate SBU’s and 

have their separate management.

PepsiCo India divided its beverage division into

different operating divisions. The heads of these

divisions report directly to the CEO. The heads of 

these divisions are in charge of their respective areas

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and are accountable for the proper functioning of all 

the regions. The FOBO’s also report to the regional 

heads apart from the COBO’s.

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 MARKETING OVERVIEW OF PEPSICO

 INDIA

Marketing Environment:Marketing environment is the overall environment in

which a Company operates. This consists of the Task 

Environment and the Broad Environment.

Task Environment 

Task Environment includes the immediate playersinvolved in producing, distributing and promoting the

offering. The main players are the company,

suppliers, distributors, dealers and the target 

customers. Suppliers include the material and service

suppliers such as marketing research agencies,

advertising agencies, banking and insurance

companies, transportation companies, and 

telecommunications companies. The dealers and 

distributors include agents, brokers, manufacturer 

representatives and others who facilitate finding and 

selling to customers.

The suppliers for PepsiCo India include the bottle

suppliers for the soft drinks. These include the Pet 

bottles and the Glass bottles. One of the most vital 

  products required in the operation is Refrigerator.

PepsiCo does not manufacture the refrigerators,

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instead they are supplied by different vendors who

get time bound contracts from the company.

The distributors and dealers are part of the sales and 

distribution network. This will be explained later 

under the section of ‘Place’, in the 4 P’s segment.

The target customer for PepsiCo is primarily the

youth. But, because of increasing competition from

Coke PepsiCo has expanded its target customer base

which now includes people who are prospects for 

beverages beyond the CSD category. PepsiCo has

started targeting this segment by offering products

in the Non- CSD category, these include fruit based 

non-carbonated drinks, juice based drinks, energy 

drinks, sports drinks, snack food (from the snack food 

division i.e. ‘Frito Lay’).

Broad Environment:

This contains forces that can have a major impact on

the players in the task environment. This includes six 

components: demographic environment, economic

environment, physical environment, technological 

environment, political – legal environment, and socio

– cultural environment. Companies need to pay close

attention to the trends and developments in these

environments and make timely adjustments to their 

marketing strategies in order survive and succeed in

the market. This will be explained in detail in the

strategic marketing segment.

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Value Delivery Process:

The value delivery process consists of the value

creation and delivery sequence. This is done in three

  phases. The first phase, choosing the value,represents the homework done by the marketing

department before the product exists. Marketing is

required to segment the market, select the

appropriate the target market, and develop the

offering’s value proposition. This is known as

Segmentation, Targeting and Positioning and is the

essence of strategic marketing.

Once the business unit has chosen the value, the

second phase is providing the value. Marketers need 

to determine specific product features, prices and 

distribution.

The task in the third phase is communicating the

value by utilizing the sales force, sales promotion,

advertising, and other communication tools to

announce and promote the product. Each of these

value phases has different cost implications.

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Value Creation and Delivery Sequence

Customer 

Segmentation

Market

Selection /

Focus

Value

Positionin

g

Choose the Value (Strategic Marketing)Provide the Value (Tactical Marketing)Product

Develop

ment

Service

Develop

ment

PricingSourcing

/

Making

Distribut

ion /

Servicin

g

Communicate the Value (Tactical Marketing)Sales

Force

Sales

Promotion

Advertisin

g

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Inbound

Logistics

Outbound

Logistics

Marketing

and Sales

Service ProcurementTechnology DevelopmentHuman Resource ManagementFirm Infrastructure

Generic Value Chain:

The generic value chain is a tool to identify ways tocreate value for the customer. This model proposes

that every firm is a synthesis of activities performed 

to design, produce market, deliver and support its

 product. In order to be more precise only the primary 

activities in the value chain of PepsiCo India are

analyzed.

Primary Activities:

Inbound Logistics – This involves bringing and 

  procuring raw materials for the business. For the

carbonated drinks industry only two raw materials

are required, they are water and the concentrated 

salt that is used to produce the final product. For this

 purpose water is extracted from the ground and the

concentrated salt is provided by PepsiCo India to all 

the plants in the country.

Operatio

ns

Margin

SupportActi

vities

Primary Activities

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Operations – Operations primarily includes all the

bottling plants. Currently there are 32 bottling

 planting in India that operate for PepsiCo. Of the 32

 plants, 15 are owned by PepsiCo and the rest 17 are

(FOBO), owned by R K Jaipuria Group.

Outbound Logistics – The Outbound logistics of 

Pepsi can be divided into three stages. First the

finished product from the bottling plants is sent to

the depot or the territorial office, from where it is

sent to the C & F centers and the Distributor Points

according to their demand. From the C & F centers

and Distributor Points the product is sent out for sale

in the market to the retailers.

Marketing and Sales – The sales and distribution

network of Pepsi is very strong and comprises of 

different layers and a dedicated sales force. This is

one of the important factors for the success of Pepsi.

To keep the company abreast with competition and to

  provide support to its channel partners and to

increase the sales, PepsiCo puts lot of effort in its

marketing activities. This includes maintaining

excellent relations with its channel partners, making

huge investments in Advertising, signing of 

Megastars as its brand ambassadors, sponsoring

various events, launching promotional for any launch

or re launch of a product.

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Service  – In this industry after sales service is

generally not required. The only exception being leak 

or burst bottles. In that case, the shopkeeper gets

replacement for plastic bottles from the salesmen

instantly, while the replacement for glass bottles is

 provided between 25th and 30th of every month. They 

are required to collect all the damaged glass bottles

and give to the respective salesperson who gives

them the replacement within the next few days after 

getting it approved from the CE or ADC.

 Marketing Mix / 4 P’s :

Marketing Mix has been defined as the set of 

marketing tools that a firm uses to pursue its

marketing objectives. These tools are classified into

four broad groups, namely, Product, Price, Place and 

Promotion.

Marketing mix decisions should be made to influence

trade channels as well as final consumers. A firm can

alter any of the four P’s accordingly, including

changes in the product and distribution channel as

well.

The four P’s represent the seller’s view of the

marketing tools available for influencing buyers.

Whereas, from a buyers point of view, each

marketing tool is designed to deliver a customer 

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Marketing

Mix

Target

Market

specific benefits according to his or her 

requirements.

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 Product

Prod. VarietyQualityDesign

FeaturesBrand NamePackaging

Sizes

Services

WarrantiesReturns

Figure 4p’s:

Product: Pepsi offers different variety of products

ranging from carbonated to Non Carbonated Soft 

Drinks. These include –

Pepsi Cola,Mirinda ( Lemon and Orange ),7

Up,Dew,Slice ,Tropicana,Aquafina (Mineral Water)

These Products come in different size – 200 ml, 300

ml, 600 ml, 1200 ml, 2 lt. there are nearly 42 SKU’s

which are monitored and regulated on daily basis.

Product Quality:

This is one of the most important aspects that any Co.

needs to address. Specially in the case of Pepsi this is

Marketing Variables: The Four P Components of the Marketing Mix

Product

Prod. VarietyQuality

DesignFeaturesBrand NamePackagingSizesServicesWarrantiesReturns

Price

List PriceDiscountsAllowancesPayment periodCredit Payments

Place

ChannelsCoverage

AssortmentsLocationsInventoryTransport

Promotion

Sales PromotionAdvertisingSales ForcePubic RelationsDirect Marketing

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even more important because of the controversies

and claims regarding the CSE report on Pesticides in

Pepsi. Therefore pepsi has to maintain stringent 

quality norms and standards and norms. Pepsi does

that by following one quality standard worldwide and 

according to the official website of pepsi, the Co.

maintains that :

“At every level of Pepsi-Cola Company, we take great 

care to ensure that the highest standards are met in

everything we do. In our products, packaging,

marketing and advertising, we strive for excellence

because our consumers expect and deserve nothing

less. We promise to work toward continuous

improvement in all areas of our organization”.

“At every step of our manufacturing and bottling

 process, strict quality controls are followed to ensure

that Pepsi-Cola products meet the same high

standards of quality that consumers have come to

expect and value from us. We also follow strict 

quality control procedures during the manufacturing

and filling of our packages. Each bottle and can

undergoes a thorough inspection and testing process.

Containers are then rinsed and quickly filled through

a high-speed, state-of-the-art process that helps

  prevent any foreign material from entering the

 product. Additional quality control measures help to

ensure the integrity of Pepsi-Cola products

throughout the distribution process, from warehouse

to store shelf”.

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Brand Name:

This is the most important thing any Co. in this

Business needs to do if it wants to remain and 

succeed in the Business. Pepsi has successfully done

that for so many years. Pepsi has targeted the youthand has invested heavily in advertising and building a

brand image (by launching several campaigns and 

roping in mega stars such as Shahrukh, Sachin,

ganguly, Dravid etc.) that attracts to the youth and 

this is one of the main reason for the success of 

Pepsi.

Packaging and Size : The products are available in

 packaging and sizes. This is done to facilitate the use

according to the requirements of the Customer.

Different packaging also affects the usage pattern of 

the product in various markets. e. g. sale of 2 lt.

bottles is high in areas in which middle and highincome group customers stay. But the sale of 200 and 

300 ml bottles is high in areas where people in the

lower income group bracket stay. The sale of 600 ml 

bottles is high in areas where students etc. stay.

Different packaging is also provided for different 

  products like Tetra Packs, Pet Bottles and Glass

Bottles (in 200 and 300 ml).

Services, Warranties, Returns : There are no

warranties and services (post sales) provided for 

these products but there is provision of returns in

case there is any problem with the product, e.g. leak 

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or burst bottle, half filled bottle etc. The pet or 

  plastic bottles are returned the same day and a

replacement is provided for the same but in the case

of glass bottles the retailer has to collect all the burst 

bottles and return it to the salesman around 25th of 

every month to get a replacement.

Price:

List Price: The Price of each product is fixed and there

is no discrepancy. Salesmen are not authorized to

make any change, alteration or give discounts unless

authorized by the Company.

Discounts: Discounts are provided to Wholesalers and 

Slums but there is no discount for retailers. The

discounts are negotiated directly with the Company 

and the C&F or the Distributor point is not involved in

the price negotiation.

  Allowances: Allowances are given to salesmen on

achieving their daily targets. This target is given to

every Salesman everyday before he goes on his

designated route. The Depot In charge (Sr. C E / C E)

gives the target to every salesman in consultation

with the TDM.

Payment period and Credit terms: No credit is

 provided. The payment procedure is not flexible as

the retailers are required to make on the spot 

 payments. At times, they defer the payment and in

that case, the Salesman either shows a shortage or 

  pays the rest of the amount by himself. The

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wholesalers are also required to make in advance but 

at times they also defer the payment and make the

 payment at a later date.

Place:

Channels: ‘Channels are independent organizations

involved in the process of making a product or service

available for use or consumption’. There are different 

intermediaries in channels that facilitate the

availability of goods to the consumer.

Coverage: Two things come under market coverage.

These are Market Reach and Market Penetration.

Market Reach can be termed as accessibility and 

Market Penetration can be termed as Frequency.

Promotion:

Sales Promotion: This is the most frequently used 

form of promotion which is used to increase the sale

of the selected product. These promotions are used 

from time to time depending upon the sale of the

  products. If the sale of any particular product 

declines or shows a declining trend then a suitable

Sales Promotion Campaign is launched to increasethe sale of that product.

  Advertising: Advertising is done by PepsiCo. COBO

(Company owned Bottling Operations) and FOBO

(Franchisee owned Bottling Operations) have no say 

in the advertising campaigns and their planning. The

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advertising account of Pepsi is handled by JWT (J

Walter Thomson) in association with the Corporate

office of PepsiCo India.

Sales Force: There is a dedicated sales force at every 

C&F and Distributor point. Every Salesman isassigned a specific route that he has to cover every 

day. The Salesman has to take care of all the Shops

on the designated route and address and inform (to

the Sr. CE / CE) about any issue any retailer has on

the route. The Salesmen are also assigned the task of 

  providing all the information to the retailers

regarding the daily schemes and the details of all the

  promotion schemes launched from time to time.

These include informing the retailer about the

  promotional scheme, registration for the scheme,

terms and conditions of the scheme etc. The

Salesman is also assigned the task of registering

maximum possible outlets on his assigned route.

Public Relations: This is one important aspects

related to the success of PepsiCo in India. Pepsi 

believes in maintaining good and healthy relations

with all its Channel partners and every other person

in the value chain. This has helped Pepsi in

maintaining an extremely competitive position in the

market in spite of the continuous onslaught from

Coca Cola.

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RETAILER CUSTOMER CUSTOMER 

 

 SALES AND DISTRIBUTION 

 NETWORK OF PEPSICO INDIA.

COMPANYCOBOFOBOWAREHOUS

E

C & FDISTRIBUT

OR 

WHOLESAL

ER 

SLUMSRETAILE

SALESM

EN

SALESM

EN

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Initially the focus of the Company remains on

reaching all the markets and then the Company shifts

its focus on increasing the frequency of sales in the

respective markets so that the sales and profitability 

of the Company can be increased.

Company (PepsiCo): PepsiCo India provides the salt 

to all the bottling plants in the Country that carry out 

the bottling operations.

COBO: These are Company owned bottling

operations operating directly under the Company.

Out of 32 bottling plants, PepsiCo owns 15.

FOBO: These are Franchise owned bottling

operations. R K Jaipuria group does all the franchisee-

bottling operations for PepsiCo India; currently R K J

Group has 17 bottling plants for Pepsi.

Warehouses: These are Company or franchisee

owned warehouses spread over various locations that 

cover the respective territories and come under the

 purview of their respective Area or Territory Offices.

Stocks are sent from the bottling plants to these

warehouses, from where they are sent to the C & F

centers and Distributor Points.

C & F Centers: These are the biggest centers in the

distribution network and receive proper assistance

from the Company (either COBO or FOBO). The C & F

center is owned by a private player and not by the

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Company. The vehicles (Delivery Vans) are owned by 

the Company, and the Salesmen at the C & F points

are on the Company Payroll.

Distributors: These are small, compared to C & F

centers. Everything at the Distributor point owned and managed by the distributor, even the

salespersons are on the Distributors payroll.

Wholesalers: These are smaller than C & F centers

and Distributor points and get the stock directly from

the Company or Franchisee. They get their stock 

directly from the Company and thus get special rates

and extra discounts from the Company.

Slums: They are generally smaller than the

Wholesalers are. However, they get special discounts

from the C & F centers and Distributor points.

 All the different players in the distribution channel 

namely C & F centers, Distributor points, Wholesalers

and Slums have different designated markets and are

not supposed to operate in the market designated to

any other player.

Retailer : Retailers are the most important chain in

the distribution channel of Pepsi as they are the only 

  point of contact with the customers. Retailers get 

their stock from all the other channel members in the

distribution channel.

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 SALES AND MARKETING HIERARCHY OF 

 PEPSICO INDIA.

MUMUMTDMMDMMDCADCCEMEUMSALESPERSON

S

MARKETING

ASSISTANTS

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MUM – Marketing Unit Manager:In charge of specific zones (e.g. north, south,

east, west) and report to the corporate office.

UM - Unit Manager:

In charge of day to day operations and 

supervision of all the functions within theorganizations including operations, logistics, sales

and distribution, marketing. The Unit Manager 

reports to the MUM.

 TDM - Territory Development Manager:

TDM is the in charge of the sales and distributionnetwork of a particular territory within a zone.

Responsible for the daily, monthly and annual sales

within the territory decides the daily schemes for 

 products and incentives for salespersons. He is also

responsible for cost effectiveness, profit generation

and profit maximization within the territory.

MDM - Marketing Development Manager:

MDM is responsible for all the marketing

activities and their effectiveness within a territory.

Decides the format and time frame of the marketing

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and promotional activities and the incentives given to

the retailers.

 ADC - Area Development Coordinator:

Reports to the TDM, and is in charge of a C & Fcenter and the distributor point in the area. He is

directly responsible for any issues in the area and is

supposed to ensure the smooth functioning of the

entire sales and distribution network in the area. ADC

is responsible for timely disposal of any issue faced 

by the retailers. He decides and approves the boards,

displays and hoardings in the area.

MDC - Marketing Development Coordinator:

Reports to MDM, and is in charge of carrying out 

all the marketing activities in the area. He is

responsible for the execution and success of 

marketing and promotional activities. Coordinates

with the outside agencies for displays, boards, checks

conducted in the market. He is also responsible to

keep a check on the expenditure of the marketing

activities in the market.

CE - Customer Executive:

Reports to the ADC and is in charge of the

salespersons. He is required to visit the market and 

accompany every salesperson as frequently as

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  possible. He is the first person to get information

about the market / area and is the first contact if the

salespersons or retailers face issue. Responsible for 

assigning and achieving daily sales target given to

the salespersons.

ME - Marketing Executive:

Reports to the MDC and is responsible for the daily 

functioning of the marketing activities in the

including awareness of promotions in the market and 

the response in the market 

Salesperson:

They are the most important asset for the

company as they are the ones who sell the products,are responsible for acquiring new customers, and 

retain the old ones. Their work also includes

informing the retailers about the promotions and any 

new scheme launched. They are also required to push

for the sale of any new product launched in the

market and make sure that the retailers are following

the company guidelines regarding the launch and the

maintenance of Vicioolers. They report to the CE.

Marketing Assistant :

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Reports to the ME and is responsible for the

distribution and usage of the displays and boards in

the area. Also has to check whether retailers are

following the guidelines of the company regarding

 promotional displays, other displays and displays in

the Vigicoolers. They report to the ME.

Pepsi is one of the most well known brands in the

world today available in over 160 countries. The

company has an extremely positive outlook for India.

"Outside North America two of our largest and fastest 

growing businesses are in India and China, which

include more than a third of the world’s population."

(PepsiCo’s annual report, 1999)

This reflects that India holds a central position in

Pepsi’s corporate strategy. India is a key market for 

Pepsico, and at the same time the company has

added value to Indian agriculture and industry.

PepsiCo entered India in 1989 and is concentrating in

three focus areas – Soft drink concentrate, snack 

foods and vegetable and food processing.

Faced with the existing policy framework at the time,

the company entered the Indian market through a

 joint venture with Voltas and Punjab Agro Industries.

With the introduction of the liberalisation policies

since 1991, Pepsi took complete control of its

operations. The government has approved more than

US$ 400 million worth of investments of which over 

US$ 330 million have already flown in.

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One of PepsiCo’s key strategies was to develop a

completely local management team. Pepsi has 15

company owned factories while their Indian bottling

  partners own 28. The company has set up 8

greenfield sites in backward regions of different 

states. PepsiCo intends to expand its operations and 

is planning an investment of approximately US$ 500

million in the next three years.

Sustainable Competitive Advantage:

Competitive advantage is a company’s ability to

 perform in one or more ways that its competitors

cannot or will not match. When a company is able to

maintain that advantage a long period of time that 

gives it an edge over its competitors then, this

advantage is termed as sustainable competitiveadvantage. Any competitive advantage must be seen

by customers as a customer advantage. Then only 

that competitive advantage can be transformed into a

sustainable competitive advantage.

Three major competitive advantages give PepsiCo

India a competitive edge in the market place. They 

are:

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• Big Muscular Brands built through better market 

 positioning and heavy investment in advertising

and promotions;

• Proven ability to innovate and create

differentiated products through superior 

operating base;

• Powerful go to market system built with the help

of superior relationship base and an impeccable

sales and distribution network.

Making it all work are the extraordinarily talented 

and dedicated people who are an integral part of 

PepsiCo India.

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Communicating with the Customer:

Marketing Communication is the means by which

firms attempt to inform, pursued and remind 

consumers directly and indirectly about the productsand brands they sell. Marketing Communication is the

central instrument of making brand equity. Marketing

Communication consists of six major modes of 

communications called the marketing communication

mix.

•  Advertising.

• Sales promotion.

• Events and Experiences.

• Public Relations and Publicity.

• Direct Marketing.

• Personal Selling.

 Although PepsiCo uses all the modes in some form or 

the other, but this study will examine various aspects

of communication with the internal customers.

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Bargaining Power of 

Suppliers

1. Supplier 

Concentration

2. Importance of 

Volume

to Supplier 

3. Differenciation of 

Inputs

4. Impact of Inputs on

Costof Differentiation

5. Switching Cost of 

Firms

in the Industry

6. Presence of 

Substitute

Inputs

7. Threat of Forward

Integration

8.Cost Relative to

TotalPurchase in Industry

Bargaining Power 

of Buyers

1. Bargaining

Leverage.

2. Buyer Volume.

3. Buyer Information.

4. Brand Identity.

5. Price Sensitivity.

6. Treat of Backward

Integration.

7. Productdifferentiation.

8. Buyer 

Concentration

Vs Industry.

9. Substitutes

Available.

10. Buyers Incentive.

Existing

Rivalry

Among

Firms

Threat of 

Substitutes

1. Switching Costs.

2. Buyer inclination

to

Substitute.

3. Price performance

trade off of 

Substitutes.

Threat of New

Entrants

1. Cost Advantage.

2. Proprietary

Products

3. Access to Inputs.

4. Government

Policy.

5. Economies of 

Scale.

6. CapitalRequirement

7. Brand Identity.

8. Switching Cost.

9. Distrbution

Access.

10.Retaliation.

Degree of Rivalry

1. Exit Barriers

2. Industry

Concentration

3. Fixed costs / Value

added.

4. Industry Growth.

5. Overcapacity.

6. Product difference.

7. Switching Costs.

8. Brand Identity.9. Diversity of Rivals.

10. Corporate Stakes.

FIVE FORCES EFFECTING THE 

 ENVIROMENT 

Threat of new entrants:

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manufacturer’s profit. Although the presence of 

substitutes does serve to increase buyer power for 

consumers, but a high degree of brand loyalty 

mitigates this loyalty. In short, we can say that the

end consumer has medium bargaining power.

Bargaining power of suppliers:

There are very few suppliers for the entire soft 

drink industry. The end product is comprised of few

ingredients, which are largely commodities. In

addition, it is safe to assume that Pepsi accounts for 

a large percentage of the suppliers total revenues.

Thus, it is important for the suppliers to contain

whatever bargaining power they have. The overall 

bargaining power of the suppliers is considered low.

Threat of Substitutes:

There are many substitutes to sweetened carbonated 

beverages. Specially in India there are several 

substitutes that pose a threat to PepsiCo. They are

bottled water, juices, energy drinks, tea, coffee,

energy drinks and CSD from its main competitor Coca

Cola India. The challenge lies in increasing brand 

loyalty within these substitute markets, because the

substitute products are, for the most part, contained 

with each manufacturer’s product portfolio. In India

the local beverages like tea and nimbu paani pose a

threat to some extent to the established players.

Therefore the threat of substitutes is very high

specially because of negligible switching costs.

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Existing Rivalry among firms:

There is intense rivalry between Coke and Pepsi.

This rivalry leads to a downward pressure on prices

and significant investment in advertising in anattempt to build and maintain brand loyalty. In a

maturing market such as domestic carbonated drinks,

the only way to gain market share is to steal from

one’s rival. Thus, Coke and Pepsi fight heatedly over 

 prices, suppliers, spokespeople, retail space and ore

importantly, the taste buds of consumers.

To do a complete analysis of the overall environment 

is not possible due to the huge sample size of the

 population therefore before presenting my findings I

would like to remind the reader the limitations or 

constraints under which the survey was done.

This survey may not be fruitful for the entire

 population of internal partners of PepsiCo butit will 

surely be useful for the particular regions mainly 

Trans-ganga and East-uttar pradesh.

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 RESEARCH METHODOLOGY 

.

Research Type : Exploratory ResearchSample

Technique : Convenient Sampling

Size : 400 Respondent (I meet 400

respondents out of which 50 were the

distributors, 250 retailers and rest of were the

normal consumers.)

Description : Distributors, retailers and 

consumers were the different part of the

varanasi.

Instrument : Questionnaire & observations of 

the respondent 

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DATA COLLECTION METHOD

The data collection mode used to get the desired 

information from primary sources & Unstructured 

Direct Interviews &the instruments used in theQuestionnaire. In this research data was collected 

through two different modes, namely-

Primary data collection:

• Gather information through Questionnaire.

• Direct interview with Grocery outlet,

Convenience store, Eating and drinking and 

consumer.

SECONDARY SOURCES:

1. Internet Sites - www.google.com ,

  www.pepsicoindia.com ,

www.wikipedia.com. .

2.Magazines - Business World Management &

Economic times.

DATA ANALYSIS FROM RETAILERS

&DISTRIBUTORS PERSPECTIVE:

Frequencies

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18.67%

64.0%

7.0%

3.67%

6.67%

Strongly agree

Agree

Can't SayStrongly Disagree

Dis Agree

PepsiCo having good distrbution channel

If we see the chart then we find that out of 100%

respondent 64% are agree that PepsiCo have good 

distribution channel and only 18.67% are strongly 

agree, the data shows that company should focus on

their distribution channel and try to convert customer 

in strongly agree respondent by providing them

better services and schemes.

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41.33%

38.33%

18.0%

1.0%

Strongly agree

Agree

Can't Say

Strongly Disagree

Dis Agree

Distribution channel is importent in positioning of product

If we see the chart then we find that out of 100%

respondent 41.33% respondent are strongly agree

that distribution channel have an important role in

 positioning of the product and 38.33% are agree and 

rest are disagree, it shows that our objective is

fulfilled by this research and we can say that if we

have to promote our product then we should have

strong distribution channel.

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70.33%

29.67%

yes

No

V.C. coolors provided by the company

If we see the chart then we find that out of 100%

respondent, 70.33% are saying that they are getting

V.C. coolers but 29.67 % are saying that they are not 

getting, it means company is not focusing on all 

retailers that major concerns for the organization.

 

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27.33%

54.33%

3.67%

10.0%

4.67%

Strongly agree

Agree

Can't Say

Strongly Disagre

Dis Agree

PepsiCo relationship with the retailers/distributors

If we see the chart then we find that out of 100%

respondent 27.33% respondent are strongly agree

that PepsiCo has maintaining good relationship with

them and 10% are strongly disagree and 54.33 % areagree, it shows that company should thing that how

can they maintain better relationship with every 

retailers and distributors.

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35.33%

48.67%

5.33%

10.67%

Excellent

Good

Bad

Worst

Perception of retailers/distributors towards the pepsiCDistribution channel

If we see the chart then we find that out of 100 %

respondent only 35.33% are saying that PepsiCo have

excellent distribution channel and 10.67% are saying

that PepsiCo have worst distribution and 48.67 % are

saying that PepsiCo have good distribution channel,

here area of concern that how company can make

happy those respondent who are thinking that 

PepsiCo have worst/bad Distribution channel and how

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can company develop good distribution channel and 

change the perception of retailers and distributors.

51.33%48.67%

yes

No

"If better scheme is given then replace with coke"

If we see the chart then we find that out of 100%

respondent, 51.33% respondent are saying that if 

they will get better services and scheme then they 

will switch over to another brand like coke and only 

 48.67% are saying that they will not switchover, it 

show that company should focus that how can be

 provided better schemes and services to the retailers

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and distributors in result they will not switchover to

another brand.

C ross tabulation:PepsiCo having good distribution channel *

PepsiCo relationship with the retailers/distributors

Symmetric Measures

  Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .593 .042 12.706 .000(c)

Ordinal by Ordinal SpearmanCorrelation

.532 .048 10.851 .000(c)

N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

Stronglyagree

Agree Can't Say StronglyDisagree

Dis Agree

 

0

20

40

60

80

100

120

140

    C   o   u   n    t

8.33%

18.33%

0.67%

42.33%

1.0% 0.67%1.33%

5.67%

0.33%

PepsiCorelationship with the

retailers/distributors

Strongly agree

Agree

Can't Say

Strongly Disagree

Dis Agree

Bar Chart

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If we see the table then we find that the relationship

with the retailers and distributors having an

important role in maintaining the good distribution

channel because 42.33% respondent are agree to say 

that we have good relation with the PepsiCo and that 

shows that PepsiCo having good distribution channel.

PepsiCo relationship with the

retailers/distributors * Time taken by the company to

make reach the product at retailers shop

Symmetric Measures

  Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .710 .027 17.383 .000(c)

Ordinal by Ordinal Spearman

Correlation.664 .036 15.334 .000(c)

N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

Stronglyagree

Agree Can't Say StronglyDisagree

Dis Agree

PepsiCo relationship with the

0

20

40

60

80

100

    C   o   u   n    t

22.0%

24.67%

5.33%

29.33%

2.0%0.33%

1.67%

8.67%

1.33%

Time taken by the

company to make

reach the product at

retailers shop

One Day

3 Day

One Week

One Month

Bar Chart

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If we see the table then we find that out of 100%

respondent 29.33% respondent are saying that we

have good relation with the PepsiCo because they are

 providing products at right time .

PepsiCo relationship with the retailers/distributors *

V.C. coolers provided by the company.

Symmetric Measures

  Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .592 .046 12.674 .000(c)

Ordinal by Ordinal Spearman

Correlation.535 .047 10.927 .000(c)

N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

Stronglyagree

Agree Can't Say StronglyDisagree

Dis Agree

 

0

20

40

60

80

100

120

140

    C   o   u   n    t

24.67%

44.33%

0.33% 1.0%2.67%

10.0% 10.0%

V.C. coolors

provided by the

company

yes

No

Bar Chart

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If we see the table then we find that out of 100%

respondent 44.33% respondent are agree to say that 

they have good relationship with PepsiCo because of 

they are getting visi coolers by the company, it 

means visi coolers have an important role in

maintaining the good relationship with the retailers.

PepsiCo relationship with the retailers/distributors *

“If better scheme is given then replace with coke"

Symmetric Measures

  Value

Asymp.

Std.Error(a)

Approx.T(b) Approx. Sig.

Interval by Interval Pearson's R -.429 .041 -8.203 .000(c)

Ordinal by Ordinal Spearman

Correlation-.479 .045 -9.427 .000(c)

N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

Stronglyagree

Agree Can't Say StronglyDisagree

Dis Agree

 

0

20

40

60

80

100

120

    C   o   u   n    t

3.0%

34.67%

0.67%

8.67%

4.33%

24.33%

19.67%

1.33% 0.33%

"If better scheme is

given then replace

with coke"

yes

No

Bar Chart

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If we see the table then we find that 24.33% are

strongly aree that they will not switchover to another 

brand because of better scheme but 34.67%

respondent are strongly agree that if they will get 

better services and schemes then they will switch

over to an- other company’s brand, it shows that if 

company have to ,maintain good relationship with

retailers and distributors then company will be focus

on better services and schemes.

PepsiCo having good distribution channel * logistics

facility of the company

Symmetric Measures

  Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .216 .031 3.815 .000(c)

Ordinal by Ordinal Spearman

Correlation.230 .047 4.075 .000(c)

N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

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Stronglyagree

Agree Can't Say StronglyDisagree

Dis Agree

 

0

50

100

150

     C    o    u    n     t

5.33%

11.0%13.33%

53.0%

7.0%3.67%

6.67%

logistics facility of 

the company

own

company

Bar Chart

If we see the table then we find that out of 100%

respondent 53% respondent are agree to say that 

better facility of logistics have an important role in

having good distribution channel .

Visi coolers provided by the company * PepsiCo

having good distribution channel

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .487 .049 9.632 .000(c)

Ordinal by Ordinal Spearman

Correlation.443 .052 8.530 .000(c)

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N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

yes No

 

0

50

100

150

    C   o   u   n    t

16.33%

2.33%

50.67%

13.33%

2.0%5.0%

3.0%0.67%

6.0%

PepsiCo having

good distrbution

channel

Strongly agree

Agree

Can't Say

Strongly Disagree

Dis Agree

Bar Chart

If we see the table then we find that out of 100 %

respondent, 50.67% are saying that they are agree to

say that PepsiCo have good distribution channel 

because they are getting visi coolers from the

company, it shows that visi coolers have an important 

role in having a good distribution channel.

Visi coolers provided by the company * Perception of 

retailers/distributors towards the PepsiCo Distribution

channel

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .544 .048 11.184 .000(c)

Ordinal by Ordinal Spearman .442 .056 8.509 .000(c)

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Correlation

N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

yes No

 

0

25

50

75

100

125

    C   o   u   n    t

29.33%

6.0%

40.33%

8.33%

0.67%

4.67%

10.67%

Perception of 

retailers/distributors

towards the

pepsiCo Distribution

channel

Excellent

Good

Bad

Worst

Bar Chart

If we see the table then we find that out of 100%respondent, 40.33% respondent are saying that 

PepsiCo have good distribution channel because they 

are getting visi coolers from the company, it shows

that visi coolers are very important for having good 

distribution channel.

Time taken by the company to make reach the

product at retailers shop * PepsiCo having good

distribution channel

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Symmetric Measures

  Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .735 .028 18.714 .000(c)

Ordinal by Ordinal Spearman

Correlation .713 .030 17.575 .000(c)N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

One Day 3 Day One Week One Month

Time taken by the company to make reach

0

20

40

60

80

100

120

    C   o   u   n    t

18.67%

27.33%

35.33%

1.33%0.67%

6.0%

0.33%0.67% 1.0%

5.0%

1.0%

PepsiCo having

good distrbution

channel

Strongly agree

Agree

Can't Say

Strongly Disagree

Dis Agree

Bar Chart

If we see the table then we find that 18.67 %

respondent are strongly agree that PepsiCo good 

distribution channel because they are getting product 

within one day and 35.33% respondent are agree to

say that PepsiCo have good distribution channel if 

they are getting product within 3 days,it shows that 

company’s distribution is depends on time that how

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quick company is providing product at door of the

retailers/distributors.

PepsiCo having good distribution channel * Services

provided by the distribution/PepsiCo

Symmetric Measures

  Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .640 .048 14.361 .000(c)

Ordinal by Ordinal Spearman

Correlation.562 .043 11.727 .000(c)

N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

Strongly

agree

Agree Can't Say Strongly

Disagree

Dis Agree

 

0

50

100

150

200

    C   o   u   n    t

18.67%

59.0%

3.33%0.67% 1.0%

5.0%

Services provided

by the

distribution/PepsiCo

yes

No

Bar Chart

If we see the table then we find that 59.0%

respondent are agree to say that PepsiCo have good 

distribution channel because they are getting good 

services and only 18.67% are strongly agree, it shows

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channel have an important role in positioning of the

 product because of only by good distribution channel 

they are getting fill their order by 100%.

DATA ANALYSIS FROM CONSUMERS

PERSPECTIVE:

Frequencies:

55.0%

45.0%

yes

No

Demanded brand Available in the Market

If we see the chart then we find that out of 

100%respondent, only 55% respondent are agree to

say whatever brand they demanded they are easily 

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get that but 45% respondent are saying that they are

not getting the demanded brand, it is major concern

that why these respondent are not able to get their 

demanded brand.

Cross Tabulation:

Age of the respondent * Soft drink consumed by the respondent in a week

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .332 .106 3.489 .001(c)

Ordinal by Ordinal Spearman

Correlation.322 .103 3.363 .001(c)

N of Valid Cases 100

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

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10-20 21-25 26-35 Above

 

0

5

10

15

20

25

30

     C    o    u    n     t

8.0%6.0%

1.0%3.0%

30.0%

5.0%

9.0%

1.0% 1.0%2.0%

10.0%

Soft drink

consumed by the

respondent in a

weekone

two to three

three to five

more than five

Bar Chart

If we see the graph then we find that age group 21-25

is more potential customer and company should focus

on them and provide them better taste, quality 

according their preferences.

Brand preferred by the respondent * demanded brand

Available in the Market

Symmetric Measures

Value

Asymp.

Std.Error(a)

Approx.T(b) Approx. Sig.

Interval by Interval Pearson's R -.241 .093 -2.455 .016(c)

Ordinal by Ordinal Spearman

Correlation-.241 .095 -2.455 .016(c)

N of Valid Cases 100

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

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PepsiCo Coke Others

 

0

5

10

15

20

25

30

    C   o   u   n    t

23.0%22.0%

10.0%

29.0%

13.0%

3.0%

Demanded brand

Available in the

Market

yes

No

Bar Chart

If we see the graph then we find that coke brand is

more easily available than Pepsi it means there is

some fault in distribution channel and company 

should find that and make available their brand at 

every retailers shop.

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 Limitations

• The limitations faced during the dissertation my 

research as lack of availability of first hand data.

  As the data included is secondary in nature,

authentication of the data is major concern. The

next difficulty was the facts and figures had 

change due to change in financial year, thus it could affect the recommendation and conclusion

 part.

• There can also be the limitation as the sample

size; on the basis of 400 respondents we can not 

get the truthful result about the distribution

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channel of any organization that major limitation

of my dissertation.

• It may happen that what question we ask from

the retailers/distributors, they may not give tact 

full answer.

• Retailers and distributors had less time to give

answer of our questionnaire and may be that 

answer is not fact full.

• The area of concern was limited due to that 

research may not give fact full result.

• Respondent was not giving the answer of our 

questions.

• The area of survey was varanasi, Uttar Pradesh

etc. and it was concentrated on urban area only.

• The psychological condition varies from place to

 place because in many places outlet owner was

not supportive.

 SWOT ANALYSIS 

In order to get clear understanding of the position of 

Diet Pepsi in the various markets we did a SWOT 

analysis from the data obtained from the survey and 

the various retailer interviews

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STRENGTHS:

PACKAGING AND PRICING – Pepsi has the advantage

of having provided the same kind of health based 

carbonated drink the Slim Diet Pepsi Can which in

comparison to the Diet coke is a much more

attractive offering because it is slim sleek equally 

healthy and way cheaper.

DISTRIBUTION – As already mentioned Pepsi India has

one strongest and most efficient sales and distribution networks not only in India but also

throughout the globe. Also in the particular market 

where the survey was done the sales people have

developed a network which is powerful enough to

make or break sales for Pepsi in any given quarter 

P R – One of the most important factors of success of 

PepsiCo in India is the relationship the company and 

its constituents have with the channel partners. The

Company officials and even the employees of FOBO

have very good rapport and relations with the

Channel partners. Also the recently introduced 

retailer benefit schemes such as the gold card 

membership and other free gifts and offerings not 

only motivate the retailers but also helped us create

visibility for the Slim Diet Can range in a profound.

The experience of working with people who welcome

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us with a smile rather than a frown will always be

remembered.

NON-CARBONATED – This is one those strengths of 

Pepsi that often goes unnoticed but plays a very 

important role in success of Pepsi in India and even

around the globe. The non-carbonated segment is

dominated by Pepsi, Tropicana is the market leader in

fruit juices. In the mineral water segment, Aquafina

clearly outsells Kinley without ay fuss.

Bottling – Pepsi has the advantage of being in

 partnership with the largest bottler in India, the R K 

 Jaipuria Group. RKJ Group controls almost 65% of the

bottling operations of PepsiCo in India. At times this

is also seen as a weakness of Pepsi in India

attributing to the fact that the Jaipuria group is so

strong that in certain circumstances it can even defy 

the parent Company.

WEAKNESS :

SECOND MOVER DISADVANTAGE - Diet Pepsi Cola

does have the first mover advantage which Diet Coke

has and this may prove to be a major shortcoming

also in the Agra Market no Extensive efforts have

been made to popularize it.

Brand – On a comparative scale Diet Coke proves to

have a better brand image in customers mind than.

This compels to incur extra expenditure in

 Advertising, Promotions and Sponsorship.

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MCDONALDS – This is one of the most important 

reason why Diet Coke outsells Pepsi worldwide and 

specially in the United States. Similarly, in India Diet 

Pepsi may suffers in sales because of institutional 

sales. Now Pepsi is trying very to bridge this gap in

the near future.

EXPENDITURE – Right from the very beginning Pepsi 

has hired the biggest and the most expensive stars in

the country as its brand ambassadors and has spend 

heavily on advertising which has affected its balance

sheet.

Vizicoolers – At presently this is one the biggest 

 problems faced by Pepsi. Pepsi is not able to get 

refrigerators in India so they have to import it other 

namely Sri Lanka, Mauritius etc. Because of this,

retailers are facing lot of problems in vigicoolers.

They are not able to get new refrigerators,

replacements for old ones, even the repair work takes

lot of time because at times even the spares are not 

available on time.

OPPORTUNITIES:

Lowest Per Capita Consumption – Even after almost 

decades of presence in the market, there are growth

opportunities for Diet Pepsi in India as here the per 

capita consumption of carbonated beverages is one of 

the lowest in the world.

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Health Based: apart from its Juice Based drinks

  portfolio Pepsi can Use the Slim Diet can to the

maximum by promoting it as a health drink at 

Cheaper prices.

THREATS:

NGO’s – NGO’s like CSE can seriously hamper the

sales and prospects of companies operating in this

industry. This happened during the pesticide

controversy involving both coke and Pepsi.

HEALTH – Growing health awareness among people

and some of ill effects of carbonated beverages have

  pursued many people to switch over to non-

carbonated beverages that can seriously hamper the

long-term prospects of the entire Industry and not 

Pepsi.

ENVIRONMENT – Environmental concerns are often

raised because of the massive amount of water 

extracted by the bottling plants resulting in the drop

in groundwater level which affects the local 

 population adversely.

In India PepsiCo adopted the strategy of growth

through intensification. In the intensification

strategy, it used market penetration by developing

one of the strongest sales and distribution network in

the world and utilizing it to the fullest.

.

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OBSERVATION 

• To collect order each and every outlet.

• To cheque visi-cooler with 100% purity.

• To see a soft drink in Brand Order.

• To see every outlet is this soft drink 

 present in display rack.

• To see every outlet visi- cooler will 

 present in prime location.

• To visit every outlet in regular basis.

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• To go every outlet and listen any 

 problems in visi- cooler and soft drink to

be noted in complaint diary.

• To see each and every outlet worked in

better condition.

• To see as a Market developer (M.D)

every outlet full fills in terms and 

conditions with visi-Cooler.

• To see as a Market developer (M.D.) if 

any outlet will not selling your product than you asked why you are not selling

in my product. Then you give advice to

outlet.

FINDING S 

Some retailers are unable to get the services

which are provided by the company 

There are some retailers are not happy with

services provided by the distributors and the

company 

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There is a gap between the retailers and the

company 

Distributers are not satisfied with the services

like margins, product availability, credit facility 

Customers prefer the taste of Thumbs Up more

than the PepsiCo’s product.

Most of the time desired products are not 

available or not chilled due to un-availability of 

visi coolers.

In most of the mix outlet company has not 

 provided its Visi Cooler, so it is becoming the

major cause for not getting fulfill of the demand.

Because retailers are promoting that brand to

the consumer which company is satisfying them

more in terms of Visi Cooler, Schemes,

Relationship etc

Retailers are not happy with the MDC (Marketing

Development Coordinator) of PepsiCo. Retailers

are saying that what they promise, do not fulfill 

that.

Marinating good relationship with the retailers

as well distributors is very important for having

a strong distribution channel 

Visi cooler have an important role in enhancingthe distribution channel and policy.

Time concern is very important in good 

distribution channel, it means providing product 

at retailers door within a time.

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Company should provide better facility of 

logistics because without logistics any company 

cannot maintain good distribution strategies.

 RECOMMENDATION 

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This is one of the most important and most difficult 

  part of the study. I arrived at certain

recommendations for PepsiCo India after the analysis

of the data. Some of the important recommendations

are as follows

• There should be and correct feedback from the

retailers on the performance of salesmen. This

will help improve their efficiency and 

accountability. Moreover, this will also help in

reducing the confusing that the retailers have at 

times because the salesman does not explain the

schemes properly.

•  As already mentioned V.C. coolers are a major 

reason of dissatisfaction among retailers. The

 periodical maintenance check of V.C. coolers is

done at three months. This should be done at an

interval of 45 days or 60 days instead of the

current practice of 90 days

• Company should adopt aggressive marketing

strategy that it could reach each and every  place.

• Company should have better logistics facility for 

making reach the product at retailer’s door at a

right time.

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• Marketing Development Coordinators/ Marketing

Executives/ Sales Executives of the company 

must focus more for making better relationship

with retailers.

• Company should provide visi cooler to every 

retailer. Because who is having visi cooler of 

which company they are promoting the same

brand to the consumer.

• Company should more focus on youth of the

country because youths more prefer the soft 

drinks.

• Company should focus on the consumers taste

and preferences and launch new product 

according to the consumer taste and need.

• Company should focus on the better services and 

schemes are providing to the retailers

 /distributors or not if not then why.

•Company should maintaining good relationshipwith the distributors as well as retailers.

In order to respond effectively to changing market 

trends and challenges, soft drink companies must 

support their improvement efforts with industry-

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specific solutions. Company should focus on their 

distribution channel because it is blood of the

company because if product will not reach the market 

then there is no need of their production as well as

company should focus on better services /schemes

which can be provide to the retailers as well as

distributors.

CONCLUSION 

 After analyzing all the aspects of the data availableand giving some important recommendations a

suitable conclusion which should be derived for this

study. However, before starting the conclusion part,

the objective of the research must be kept in mind so

that we can arrive at a befitting conclusion for the

research problem.The primary objective of this research was to know

distribution channel Strategy of PepsiCo and to know

the importance of Distribution channel strategy in

Positioning of the product.

The data collected provided a sound base for 

understanding the overall organizational set up of 

PepsiCo in India. By analyzing the data and the

literature review, following conclusion was inferred:

• The Sales and Distribution Network of Pepsi is

very strong and almost flawless.

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• PepsiCo India had the first mover advantage

when it entered the market and it capitalized on

that advantage to grab the market.

• Franchisee based operations combined with the

Company’s operations add strength to the

overall presence of the Company in the market.

• Franchisee takes care of its operations and 

PepsiCo does not interfere in its operations. The

Franchisees are required to report to the

Company at specific time intervals.

• The Advertising Campaigns are conceived,

implemented by the PepsiCo and Franchisee has

no say in that.

• It is very important to develop good relationship

with the retailers by providing them better 

services and schemes.

• Maintaining the good relationship with the

distributors are very important for the company 

because they are the main part of the

distribution channel.

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 BIBLIOGRAPHY 

•  PEPSICO INTERNATIONAL OFFICIAL WEBSITE,

•  PEPSICO INDIA WEBSITE.

•  PEPSICO INTERNATIONAL INTERNAL REPORT.

• www.google.com .

• www.pepsicoindia.com .

• www.wikipedia.com .

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•  Magazines - Business World Management & Economic times.

Questionnaire:

Dear Sir

On behalf of PepsiCo India Ltd., We want to thank you for giving us the

opportunity to serve you. Please help us serve you better by taking a

couple of minutes to tell us about the service that you have received so far.

We appreciate your business and want to make sure we meet your 

expectations.

This will be used only for academic purpose only

 Name of Retailer/Distributors _______________________

  Address __________________________________ 

  Phone no ___________________________________

1. PepsiCo have good distributions channel?

 

a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.

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 Disagree

 

2. Distribution channel has an important role in positioning of the

 product?

a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.

 Disagree

3. How much time, Company takes to make reach the product at 

retailer shop?

a. One day b. 3 day c. One week 4. One month.

 

4. You are having logistics facility of company or own?

 

a. own b. Company

5. Are you being provided the v.c.coolors by the company?

a. yes b. no

6. PepsiCo has good relationship with the distributors/retailers?

a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.

 Disagree

7. Perception of retailers/distributors towards the PepsiCo’s

 Distribution Channel?

a. Excellent b. good c. bad d. worst 

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8. Are you happy with services provided by the

distributors/PepsiCo?

a. yes b. no

9. Is there any govt. interference?

a. yes b. no

10. Are you satisfied with distribution policy of the PepsiCo? If 

chance given to you replace with coke

a. Yes b. no

11. Ever missed your order? If yes then what may be main reason?a. Wrong order b.sudden change in weather c. change in

 schemes

12. How frequently Executive comes to take orders?

 

a. Daily b. After 1-2 days c. once in a week 

13. Accuracy of order fills?

a.100% b. 100- 80% c.50-80% d. below 50%

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Consumers:

 Name:

Gender:  a. Male b. Female

 Age:  a. 10 to 20 b. 21 to 25 c. 26 to 35 d. 35 above

1. How many times you go for soft drink in a week?

a. One b. Two to three c. three to five d. more than five

2. Which brand’s soft drink you usually drink?

a. PepsiCo b. Coke c. others.

3. Do you get easily your demanded brand in the market?

a. yes b. No