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Faculty of Management StudiesInstitute of Rural Management
SUMMER INTERNSHIP PROGRAM – 2009
A PROJECT REPORT ON
PEPSI GOLD CLUB (IMPACT OF RETAIL INATIATE SCHEME ON PEPSI SALE)
At
CORPORATE GUIDE: FACULTY GUIDE:Mr. Ritesh Arora Dr. Preeti Yadav(Market development Coordinator) Faculty,Pepsi, Jaipur. Jaipur.
PRESENTED BY:Sharad VijayvargiyaEnroll. No: BM/JULY/O8/21/1737
PGDBM (2008-10)
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CERTIFICATE
This is to certify that this project report entitled “IMPACT OF
RETAIL INATITE SCHEME ON PEPSI SALE (GOLD
CLUB AUDIT)” is a record of project work done
independently by Sharad Vijayvargiya, under my guidance &
supervision and that it has not previously formed the basis for
the award of any degree, fellowship or associateship to him.
Date:
(Prof. Preeti Yadav)
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DECLARATION
I hereby declare that this project work titled “IMPACT OF RETAIL
INTIATE SCHEME ON PEPSI SALE (GOLD CLUB AUDIT)” conducted at
PEPSICO (Varun Beverages) is submitted by me to the
Faculty of Management Studies- Institute of Rural Management
in partial fulfillment of requirements of MBA programme is a
bonafide work carried by me under the guidance of Dr. Preeti
Yadav.
This has not been submitted earlier to any other
university or Institution for the award of any
degree/diploma/certificate or published any time before.
Sharad Vijayvargiya
PGDBM (FMS-IRM)
Jaipur.
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ACKNOWLEDGEMENT
I would like to express my sincere thanks to my Project Guide
Mr. Ritesh Arora (F.M.O.) for his guidance and support
throughout my training at PepsiCo Ltd.(Varun Beverages). His
calm demeanor and willingness to teach has been a great help in
our successfully completing the project. My learning has been
immeasurable and working under him was a great experience.
I extend my sincere thanks to all the staff members of PepsiCo for
providing a very hospitable and helpful work environment and
making my summer training an exciting and memorable event.
My heartfelt gratitude to respected Faculty Guide,
Dr. Preeti Yadav. Without her continuous help the project would
not have been materialized in the present form. Her valuable
suggestions helped me at every step.
Finally, I thank our Institute FMS-IRM for making this
experience of summer training in an esteemed organization like
PepsiCo Ltd. (Varun beverages).
TABLE OF CONTNTS
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S.NO. CHAPTER PAGE NO.
1 Introduction To The Topic 8-9
2 Objective Of Study 10-12
3 Executive Summary 13
4 Industry Analysis 14-29
5 SWOT Analysis 30-31
6 Research Methodology 32-33
7 Gold Club Audit 34-37
8 Data Analysis 38-63
9 Limitation 64
10 Economical Utility Of Study 65-69
11 Findings 70-71
12 Recommendations 72-73
13 Questionnaire 74
14 Bibliography 75
List of Tables and Diagrams
S.No. Diagrams/Table’s Heading Page
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No.
1Distribution of locations (Pie Chart)
39
2( Location A ) Visi Size Table and Column Diagram
40
3( Location A ) Rack Type Table and Pie Chart
41
4
( Location A ) Visi/Rack Purity & Visi POG Table and Column
Diagram 42
5( Location A ) Rack/Visi Charging Table and Column Diagram
43
6(Location B ) Visi Size Table and Column Diagram
44
7 (Location B) Rack Type Table and Pie Chart 45
8
(Location B) Visi/Rack Purity & Visi POG Table and Column
Diagram 46
9(Location B) Rack/Visi Charging Table and Column Diagram
47
10(Location C) Visi Size Table and Column Diagram
48
11(Location C) Rack Type Table and Pie Chart
49
12
(Location C) Visi/Rack Purity & Visi POG Table and Column
Diagram50
13 (Location C) Rack/Visi Charging Table and Column Diagram 51
14 (Location D)Visi Size Table and Column Diagram 52
15 (Location D) Rack Type Table and Pie Chart 53
16 (Location D) Visi/Rack Purity & Visi POG Table and Column 54
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Diagram
17 (Location D ) Rack/Visi Charging Table and Column Diagram 55
18 (Location E ) Visi Size Table and Column Diagram 56
19(Location E ) Rack Type Table and Pie Chart
57
20
(Location E ) Visi/Rack Purity & Visi POG Table and Column
Diagram58
21(Location E ) Rack/Visi Charging Table and Column Diagram
59
22(Location F) Visi Size Table and Column Diagram
60
23 (Location F) Rack Type Table and Pie Chart 61
24 (Location F ) Visi/Rack Purity & Visi POG Table and Column Diagram 62
25(Location F) Rack/Visi Charging Table and Column Diagram
63
26Economical Analysis: Table 1 & Diagram
66
27Economical Analysis: Table 2 & Diagram
68
28Economical Analysis: Table 3 & Diagram
69
INTRODUCTION TO THE
TOPIC
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PepsiCo Pvt. Ltd. is world leader in convenient snacks, foods and
beverages. It produces many foods beverage products like Frito-
Lay, Mountain dew, Mirinda, Slice, 7up, Nimbooz, Tropicana,
Pepsi etc.
PepsiCo Pvt. Ltd. is running many Retail Initiate Schemes such as
Gold Club, Prestige Club, and Exclusive Club etc. Each scheme
has its own format. We got Gold Club Scheme which is also
known as Space Club. It is a retail initiate scheme which impacts
sale. In Jaipur, Gold Club is having 500 retailers of Pepsi, which
gives highest sale to company.
Company provides Visi coolers to these retailers. Visi coolers are
commonly known as Pepsi Fridge. Gold club
Scheme is a kind of audit where we check visi at several bases.
For it there is a format, which we can see on next page.
Today Visi Purity, Rack purity, Rack Charging, Visi Charging and
Visi POG are major problem for company. Our study is based
upon it and our results show this. PepsiCo Pvt. Ltd. wants to know
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its visis conditions as well as art of use by retailers. Company has
a format for it.
S.No. Outlet
Name
Location Visi
Size
Rack
Type
Visi
Purity
Visi
Charging
Visi
POG
Rack
Purity
Rack
Charging
No. of
SKU
Available
FMO
Count
OBJECTIVE OF STUDY
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There were various objectives to conducting this study, we can
mention them by following points:-
To know visi’s condition such as its size, type, maintenance
problem: - Company wanted an accurate database of visis. They
were having database but it was not accurate such as in some
outlets visi is PVC but in record it was GRAVITY. In some outlets
visi is 300 liters. But it was 200 or 400 Liters in records. In other
hand company wanted to check visis condition like are they
having any maintenance problem or not?
To know retailers problem regarding supply, scheme and
others: - What types of problems retailers are facing? It was
company’s one of the main objective. Are they getting proper
supply or not? Are they getting schemes or not? Suppliers’
behavior is perfect or not?
To know about Visi audit (visi purity, visi charging, visi
POG): - Company also wanted to know that are retailers using
visis for PepsiCo products or not? Are they using it for personal
use or for keeping other company’s products?
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To know about Rack audit (rack purity, rack charging): -
Company wanted to know how many retailers is using rack audit
norm? It means are they arranging rack in appropriate manner and
filling visi according to company’s policies?
To know about SKU availability: - Company also wanted to
know how many retailers are having full products and in various
sizes like Pepsi (200ml. , 300ml. ,1 liter, 2 liters), Pepsi My Can,
Mirinda (200ml. , 300ml. ,1 liter, 2 liters), Nimbooz (200ml. ,
300ml. ,1 liter, 2 liters),same case in Tropicana, Mountain dew
etc.
To know about FMO count (PEPSI, MIRINDA): How much
stock retailers are having of Mirinda, Pepsi? Through this
company estimates its sales. In it we calculate no. of bottles like
Joshi Cold Drink is having 50 bottles of 500ML, and 15 bottles of
2 liters of Pepsi. In this case I will mention 65 in Pepsi FMO
count.
To analysis its Supply chain and customer relationship
management: - Company wanted to know that are Retailers
getting PepsiCo products by proper supply chain? And in other
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hand are retailers getting full satisfaction by customer relationship
management?
To know about market condition of its visis as compare to
competitors: - Company wanted to know that competitor’s visis
{coca-cola} are serving in what manner. It means are they
providing any special size or features? Company can improve the
quality, features of its visi’s by analysis its competitors strategy.
Executive Summary
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Soft drinks are non-alcoholic water-based flavored drinks that are
optionally sweetened, acidulated and carbonated, some carbonated
soft drinks also contains caffeine; mainly the brown-colored cola
drinks.
In India PepsiCo and Coca cola are major player of soft drink
industry. Varun Beverage Ltd. is the main bottlers for Pepsi in
India. Varun Beverages Limited is a group company of R.J.
Group.
RJ Corp has business interests in restaurants (Pizza Hut and KFC),
coffee chain (Costa Coffee), and Walt Disney group company
Disney Artist, ice cream(Cream Bell), liquor (through a JV with
beer major In Beverage), real estate, hotels and education. All
food, retail and franchise operations are consolidated under group
company Devyani International.
In January 2009, the government cleared the decks for a $50-
million (about Rs 250 crore) infusion of foreign direct
investment by PepsiCo Holdings into the India arms.
INDUSTRY- ANALYSIS
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(The originator of PEPSI Caleb D. Bradham)
Global level: - Caleb Bradham, a New Bern, North
Carolina, druggist, who first formulated Pepsi-Cola, founded
PepsiCo’s beverage business in 1898.
Today, Brand Pepsi is part of a portfolio of beverage brands that
includes carbonated soft drinks, juices and juice drinks, ready-to-
drink teas and coffee drinks, isotonic sports drinks, bottled water
and enhanced waters. PNAB (PepsiCo North American
Beverages) has well known brands such as Mountain Dew, Diet
Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra
Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole,
Tropicana Twister and Tropicana Season's Best.
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PNAB manufactures and sells concentrate for some of these
brands to licensed bottlers, who sell the branded products to
independent distributors and retailers. PNAB provides advertising,
marketing, sales and promotional support for its brands. This
includes some of the world's best-loved and most-recognized
advertising.
In 1992, PNAB formed a partnership with Thomas J. Lipton Co.
to sell ready-to-drink tea brands in the United States. Pepsi-Cola
also markets Frappuccino ready-to-drink coffee through a
partnership with Starbucks.
Anthony Rossi as a Florida fruit packaging business founded
Tropicana in 1947. In 1954, Rossi pioneered a pasteurization
process for orange juice. For the first time, consumers could enjoy
the fresh taste of pure not-from-concentrate 100% Florida orange
juice in a ready-to-serve package. The juice, Tropicana Pure
Premium, became the company's flagship product. PepsiCo
acquired Tropicana, including the Dole juice business, in August
1998.
SoBe became a part of PNAB in 2001. SoBe manufactures and
markets an innovative line of beverages including fruit blends,
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energy drinks, dairy-based drinks, exotic teas and other beverages
with herbal ingredients.
Gatorade thirst quencher sport drinks, was acquired by The
Quaker Oats Company in 1983 and became a part of PepsiCo with
the merger in 2001. Gatorade is the first isotonic sports drink.
Created in 1965 by researchers at the University of Florida for the
school's football team, "The Gators," Gatorade is now the world's
leading sports drink.
PepsiCo International is comprised of all PepsiCo businesses in
Europe, Asia, Africa and Australia.
Historically, Pepsi-Cola began selling its products in Europe in the
1930s and expanded international beverage operations rapidly
beginning in the 1950s. PepsiCo formally established an
international food unit in 1973, and 30 years later, in 2003 the
company combined the food and beverage businesses to form
PepsiCo International.
Today, the employees of PepsiCo International make, sell and
deliver a variety of great tasting foods and beverages around the
world, including Lay’s potato chips, Doritos, Cheetos, Quaker
Oats, Pepsi-Cola, Gatorade, Lipton ready to drink teas, and
Tropicana juices. Brands sold exclusively in international markets
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include 7-Up and Mirinda beverages and many popular local
snack brands, including Walkers in the United Kingdom,
Matutano in Iberia, Duyvis nuts in Western Europe, Marbo and
Star snacks in Eastern Europe, Lebedyansky juices in Russia,
Simba in South Africa and Smith’s in Australia. The company
also regularly introduces unique products for local tastes.
PepsiCo International has a well-earned reputation of giving back
to the communities in which its products are sold, with a focus on
health and wellness, environmental sustainability and education.
Specific programs are aimed at promoting active lifestyles for
children; recycling and environmental cleanup in local
communities; and book and computer donations to libraries and
schools.
Indian level: - PepsiCo entered India in 1989 and has grown
to become one of the country’s leading food and beverage
companies. One of the largest multinational investors in the
country, PepsiCo has established a business, which aims to serve
the long-term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S. $1
billion since the company was established in the country. PepsiCo
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provides direct and indirect employment to 150,000 people
including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats
to healthy eats that deliver joy as well as nutrition and always,
good taste. PepsiCo India’s expansive portfolio includes iconic
refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew,
in addition to low calorie options such as Diet Pepsi, hydrating
and nutritional beverages such as Aquafina drinking water,
isotonic sports drinks - Gatorade, Tropicana 100 percentage fruit
juices, and juice-based drinks – Tropicana Nectars, Tropicana
Twister and Slice. Local brands – Lehar Evervess Soda, Dukes
Lemonade and Mangola add to the diverse range of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded
salty snack market and all Frito Lay products are free of trans-fat
and MSG. It manufactures Lay’s Potato Chips; Cheetos extruded
snacks, Uncle Chipps and traditional snacks under the Kurkure
and Lehar brands. The company’s high fibre breakfast cereal,
Quaker Oats, and low fat and roasted snack options enhance the
healthful choices available to consumers. Frito Lay’s core
products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked
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in Rice Bran Oil to significantly reduce saturated fats and all of its
products contain voluntary nutritional labeling on their packets.
The group has built an expansive beverage and foods business. To
support its operations, PepsiCo has 43 bottling plants in India, of
which 15 are company owned and 28 are franchisee owned. In
addition to this, PepsiCo’s Frito Lay foods division has three state-
of-the-art plants. PepsiCo’s business is based on its sustainability
vision of making tomorrow better than today. PepsiCo’s
commitment to living by this vision every day is visible, in its
contribution to the country, consumers and farmers.
Performance with Purpose. Performance with Purpose
articulates PepsiCo India's belief that its businesses are
intrinsically connected to the communities and world that
surrounds it. Performance with Purpose means delivering superior
financial performance at the same time as we improve the world.
To deliver on this commitment, PepsiCo India will build on the
incredibly strong foundation of achievement and scale up its
initiatives while focusing on the following four critical areas that
have a business link and where we believe that we can have the
most impact.
OUR CUSTOMERS
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Our customers include authorized bottlers and independent
distributors, including foodservice distributors and retailers. We
normally grant our bottlers exclusive contracts to sell and
manufacture certain beverage products bearing our trademark
within a specific geographic area. These arrangements provide us
with the right to charge our bottlers for concentrate, finished
goods and Aquafina royalties and specify the manufacturing
process required for product quality.
Since we do not sell directly to the consumer, we rely on and
provide financial incentive to our customers to assist in the
distribution and retailers, these incentives include volume- based
rebates, product placement fees, promotions and displays. For our
bottlers, these incentives are referred to as bottler funding and are
negotiated annually with each bottler to support a variety of trade
and consumer programs, such as consumer’s incentives,
advertising support, new product support, and vending and cooler
equipment placement. Consumer incentives include coupons,
pricing discount and promotions, and other promotional
offers .advertising support is directed at advertising programs and
supporting bottler media. New product support includes targeted
consumer and retailers incentives and direct marketplace support,
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such as point- of – purchase materials, product placement fees,
media and advertising. Vending and cooler equipment placement
program support the acquisition and placement of vending
machine and cooler equipment. The nature and type of programs
vary annually.
Retail consolidation and the current economic environment
continue to increase the importance of major customers. In 2008,
sales to wal-mart stores, inc. (wal-mart), including Sam’s club,
represented approximately 12% of our total net revenue. Our top
five retail customers represented approximately 32% of our 2008
North American net revenue, with wal-mart (including Sam’s)
representing approximately 18%. These percentages include
concentrate sales to our bottlers, which are used in finished goods
sold by them to these retailers. In addition, sales to PBG
represented approximately 8% of our total net revenue in 2008.
OUR RELATED PARTY BOTTLERS
We have ownership interests in certain of our bottlers. Our
ownership is less than 50% and since we do not control these
bottlers, we do not consolidate their results. We have designated
three related party bottlers, PGB, Pepsi Americas, ins. (pas) and
Pepsi bottling ventures LLC (PBV), as our anchor bottlers. We
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include our share of their net income based on our percentage of
income ownership in our income statement as bottling equity
income. Our anchor bottlers distribute approximately 60% of our
North American beverage volume and approximately 17% of our
beverage volume outside of North America. Our anchor bottlers
participate in the bottler funding programs described above.
Approximately 6% of our total 2008 sales incentives were related
to these bottlers our share of net income from other no controlled
affiliates is recorded as a component of selling, general and
administrative expenses.
OUR DISTRIBUTION NETWORK
Our products are brought to market through direct-store-delivery
(DSD), customer warehouse and foodservice and vending
distribution networks. The distribution system used depends on
customer needs, product characteristics and local trade practices.
DIRECT-STORE-DELIVERY - We are bottlers and our
distribution operates DSD system that delivers snacks and
beverages directly to retail stores where the products are
merchandised by our employees or our bottlers. DSD enables us to
merchandise with maximum visibility and appeals is especially
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well suited to products that are restocked often and respond to in-
store promotion and merchandising.
CUSTOMER WAREHOUSE - Some of our products are
delivery from our manufacturing plants and warehouse to
customer warehouse and retail stores. These less costly systems
generally work best for products that are less fragile and
perishable, have lower turnover, and are less likely to be impulse
purchases.
FOODSERVICE AND VENDING - Our foodservice and
vending sales force distributes snacks, foods and beverages to
third-party foodservice and vending distributors and operators.
Our foodservice and vending sales force also distribution certain
beverages through our bottlers. This distribution system supplies
our products to schools, businesses, stadiums, restaurants and
similar locations.
OUR COMPETITION
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Our businesses operate in highly competitive markets. We
compete against global, regional, local and private label
manufacturers based on price, quality, product variety and
distribution. In U.S. measured channels, our chief beverage
competitor, the coca-cola company, has a larger share of
carbonated soft drinks (CSD) consumption, while we have a larger
share of liquid refreshment beverages consumption. In addition,
the coca cola company has a significant CSD share advantage in
many markets outside the United States. Further, our snack brands
hold significant leadership positions in the snack industry
worldwide. Our snack brands face local and regional competitors,
as well as national and global snack competitors, and compete
based on price, quality, product variety and distribution. Success
in this competitive environment is dependent on effective
promotion of existing products and the introduction of new
products. We believe that the strength of our brands, innovation
and marketing, coupled with the quality of our products and
flexibility of our distribution network, allow us to compete
effectively.
OUR RELATIONSHIP
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Certain members of our board of directors also serve on the boards
of certain vendor and customers. Those board members do not
participate in our vender selection and negotiations nor in our
customer negotiations. Our transaction with these vendors and
customers are in the normal course of business and are consistent
with terms negotiated with other vendors and customers. In
addition, certain of our employees serve on the boards of our
anchor bottlers and other affiliated companies and do not receive
incremental compensation for their board services.
PepsiCo Mission“To be the world’s premier consumer products company focused
on convenience 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.”
Organizational Values
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Our values reflect our aspirations - the kind of company we
want PepsiCo to be. We express our values in the form of a
commitment. Our commitment is:
Sustained Growth is fundamental to motivating and measuring our
success. Our quest for sustained growth stimulates innovation,
places a value on results, and helps us understand whether today's
actions will contribute to our future. It is about growth of people
and company performance. It prioritizes making a difference and
getting things done.
Empowered People means we have the freedom to act and think in
ways that we feel will get the job done, while being consistent
with the processes that ensure proper governance and being
mindful of the rest of the company's needs.
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Responsibility and Trust form the foundation for healthy growth.
It is about earning the confidence that other people place in us as
individuals and as a company. Our responsibility means we take
personal and corporate ownership for all we do, to be good
stewards of the resources entrusted to us. We build trust between
others and ourselves by walking the talk and being committed to
succeeding together.
Guiding PrinciplesThis is how we carry out our commitment. We must always strive
to:
Care for customers, consumers and the world we live in. An
intense, competitive spirit in the marketplace drives us, but we
direct this spirit toward solutions that achieve a win for each of
our constituents as well as a win for the corporation. Our success
depends on a thorough understanding of our customers, consumers
and communities. Caring means going the extra mile. Essentially,
this is a spirit of growing rather than taking.
Sell only products we can be proud of. The test of our standards is
that we must be able to personally endorse our products without
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reservation and consume them ourselves. This principle extends to
every part of the business, from the purchasing of ingredients to
the point where our products reach the consumer's hands.
Speak with truth and candor. We speak up, telling the whole
picture, not just, what is convenient to achieving individual goals.
In addition to being clear, honest and accurate, we take
responsibility to ensure our communications are understood.
Balance short term and long term. We make decisions that hold
both short-term and long-term risks and benefits in balance over
time. Without this balance, we cannot achieve the goal of
sustainable growth.
Win with diversity and inclusion. We leverage a work
environment that embraces people with diverse backgrounds,
traits and different ways of thinking. This leads to innovation, the
ability to identify new market opportunities, all of which helps
develop new products and drives our ability to sustain our
commitments to growth through empowered people.
Respect others and succeed together. This company is built on
individual excellence and personal accountability, but no one can
achieve our goals by acting alone. We need great people who also
have the capability of working together, whether in structured
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teams or informal collaboration. Mutual success is dependent on
treating everyone who touches the business with respect, inside
and outside the company. A spirit of fun, our respect for others
and the value we put on teamwork make us a company people
enjoy being part of, and this enables us to deliver excellent
performance.
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SWOT ANALYSIS
Strengths –
(a) Pepsico is a well-known brand in FMCG sector.
(b) Pepsico is offering many attractive sales promotion schemes.
(c) Pepsico is having good market share.
(d) Pepsico is offering many brands like 7up, Slice, Mirinda etc.
(e) Pepsico is offering Varity of tastes to select.
Weakness –
(a) Lack of effective customer services.
(b) Retailers are not getting proper schemes of Pepsi.
(c) Visis are out of order. In Jaipur town there is appropriate
maintenance services available.
(d) Retailers are complaining about cooling. Visis are not
cooling well mainly 300 and 400 liters.
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Opportunities: -
(a) Large beverage market.
(b) Popular in youth as well as children.
(c) New taste can be introduced like apple, even health drink also.
(d) In India the major competitors of Pepsi are tea, coffee, lassi, in
this case Pepsi can come in 100 ml or even 50 ml at Rs.3 or 4.
Threats: -
(a) Increasing competitors day by day.
(b) Poor publicity by competitors.
(c) Numberless innovation’s area in beverage industry.
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RESEARCH METHODLOGY
Sources of data-The methodology adopted for this research study
is based on primary and secondary data.
Tools of data collection-
Primary data-The primary data collected for the study includes
the data collected from Retailers in Jaipur and near to Jaipur town
through observations and questionnaire.
Secondary data-Secondary data was collected from the company
manuals, internet, and journal.
Sampling unit-The sampling unit is the basic unit containing the
elements of the population to be sampled. Sampling unit for the
study include different retailers of Jaipur and near to Jaipur town.
(Gold club retailers)
Sample size: -The sample size includes 478 retailers.
Sampling method: -Selective sampling method.
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METHOD OF PROJECT FINDINGS
Tabular forms- Observations and inferences are presented in
table, as it makes easy to understand the findings at glance than
going through the lengthy descriptions.
Graphs- Each finding is presented in the form of the pie charts or
bar diagrams after the analysis for easy references. The main
features of frequency distribution are conveniently communicated
by representing the frequency in the form of the diagram, since the
diagram is more easily and more quickly understood than a
collection of numbers.
Description – After the analysis of the collected data,
interpretations are also given at the bottom of the tables.
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GOLD/SPACE CLUB AUDIT
Gold club or space club is a group of approx 500 retailers of
Jaipur and near to Jaipur town. They all are having visis of
different size and type.
Gold club audit is a type of audit where a researcher judges every
retailers performance regarding visi. In this audit we were having
a format which has these columns.
Serial no: - In this Column we mention retailers number like 1, 2,
3, 4………………..
Name of outlet: -In it we put outlet name such as Joshi cold
drinks, Dev hotel etc.
Location/Town: - In this we mention location of outlet such as
Ramganj, Jothwara, and Adrash Nagar etc. And in town we
mention Jaipur town.
Visi Size: - There are mainly three types of visis in PepsiCo
220,300,400 liters. But in some outlet they are having
160,1192litres visi size.
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Rack Type: - There are two types of Rack first is Gravity and
second is PVC. A gravity rack is old visi and has iron body, in
other hand a PVC rack is new one, it has plastic body.
Visi Purity: - It means how much a visi is pure. If a visi has only
PepsiCo products it known as pure visi or if a visi has milk, juices,
butter or other company’s product like coca-cola, Thums up it will
be known as impure visi. In this Column we fill YES or NO
options.
Visi Charging: -It means how much visi is charged with PepsiCo
products. For example a visi is having only 2 bottles of Pepsi and
1 bottle of Mirinda, in this case visi is not charged full. In other
hand a visi is full charged with its product then it will come under
charged visi. We mention this detail by percentage basis through
observation method like 45%, 70% or 90% etc.
Visi POG: - It stands visicooler planogram.According to
company’s norms a visi should keep a certain sequence. This
sequence is different in various sizes. For example in 220 liters
size visi has 3 shelves;
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In first shelf retailers should keep 1 row Pepsi My Can, 4 rows of
Pepsi (300ml.), 1 row of 7up (300ml.) and at last row for Mirinda
(300ml.)
In second shelf they should keep 2 row of Mirinda (300ml.), 2 row
of Mountain Dew (300ml.), and 3 row of Slice (300ml.)
And in third shelf retailers should 2 row of Pepsi (500ml.), 1 row
of Mirinda (500ml.), 1 row of Mountain dew (500ml.), 1 row of
Pepsi (2 liters)
Rack purity: - It means how much a rack is pure. A visi has 2, 3
or 4 racks according to its size. If a rack is having products with
certain size of PepsiCo according Company’s norms it will be
termed as a pure rack. In this we mention YES or NO options.
Rack charging: - How much a rack or shelf is charged with
PepsiCo products according to norms. In this option we mention
Percentage.
No. of SKU available: - In this column we mention how many
brands of PepsiCo a retailer is having. For example Pepsi
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200ml.300ml. , Pepsi My Can, Mirinda 200ml.2litres, Tropicana
(Mango, Apple), it means there are 08 SKU available.
FMO COUNT.
Pepsi FMO: -In this column we mention how much they
(Retailers) are having Pepsi stock. In this we put no. of bottles like
50,100 or 200 etc.
Mirinda FMO: - In this column we mention how much they
(Retailers) are having Mirinda stock. In this we put no. of bottles
like 50,100 or 200 etc.
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DATA- ANALYSIS
We divided Jaipur town in 06 locations. So that we can work
according area wise. We can mention these locations;
Location A: - This location includes Ramganj, Johri Bazaar,
Amer, Subash chowk, Ghatgate, Badi chopar, Choti chopar,
Tripoliya, Chaura Rasta, Chandi ki taksal, etc.
Location B: - This location includes Agra road, Gaunar,
Transport Nagar, Sethi colony, M.D. road, Rajapark, Jawahar
Nagar, Janta colony, Adrash Nagar, Brahmpuri, etc.
Location C: - This location includes Chandpol, S.C. road,
Sindhicamp, Railway station, City parlor, M.I. road, Jalupura, C-
scheme etc.
Location D: - This location includes Malviya Nagar, Gourav
tower, Tonk road, Janta store, Gandhi Nagar, Bajaj Nagar,
Jagatpura, J.L.N. Marg, Barket Nagar, etc.
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Location E: - This location includes Jothwara, Chomu road,
Ambawari, Ajmer road, Vaishali Nagar, Chitrkoot, Khatipura,
Jharkhand Mod, Shastri Nagar etc.
Location F: - This location includes Sanganar area.
There are 478 outlets in these locations, which come in Gold Club.
We can show no. of outlets according to area wise.
Locations – Chart
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LOCATION A:
Visi Size: - This location has 66 outlets. We can mention various
sizes of visis with their no. of outlets through following table:
Visi Size No. of Outlets
400Ltrs. 27
300Ltrs. 20
220 Ltrs. 16
Others 03
Rack Type: - As we know there are two types of rack,
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(a) Gravity, (b) PVC. We can mention its result by
the table.
Rack type No. of outlets
Gravity 25
PVC 41
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Visi Purity, Rack Purity and Visi POG: - These are the most
important points in our research; we can present it by following
table.
Options Visi Purity Rack Purity Visi POGYes 40 42 06No 26 24 60
(No. of Outlets)
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Visi Charging and Rack Charging: - In this location we have 65
outlets, in this location we got these values, which we can mention by
following table.
Type 0% to 50% 51% to 75% 76% to 100%
Visi Charging 03 26 37
Rack Charging 07 29 30
(No. of Outlets)
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LOCATION B:
Visi Size: -In this location 85 outlets are situated, we got following values.
Visi Size No. of outlets
400 ltrs. 27
300 ltrs. 21
220ltrs. 35
Others 02
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Rack Type: - Out of 85 outlets, we came at this result.
Rack type No. of outlets
Gravity 38
PVC 47
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Visi Purity, Rack Purity and Visi POG: - These are the most
important points in our research; we can present it by following table.
Options Visi Purity Rack Purity Visi POG
Yes 47 49 7
No 38 36 78
(No. of Outlets)
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Visi Charging and Rack Charging: - In this location we came to
know following results.
Options 0% to 50% 51% to 75% 76% to 100%
Visi Charging 15 23 47
Rack Charging 23 30 32
(No. of Outlets)
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LOCATION C:
Visi Size: -In this location 87 outlets are situated, we got
following results.
Visi Size No. of outlets
400 ltrs. 24
300 ltrs. 13
220 ltrs. 41
Others 09
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Rack Type: - As we know there are two types of rack, (a)
Gravity, (b) PVC. We can mention its result by the table.
Rack type No. of outlets
Gravity 31
PVC 56
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Visi Purity, Rack Purity and Visi POG: - we can present it by
following table.
Options Visi Purity Rack Purity Visi POG
Yes 43 46 12
No 44 41 75
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Visi Charging and Rack Charging: - In this location, we came
to know following results.
Percentage 0% to 50% 51% to 75% 76% to 100%
Visi Charging 15 27 45
Rack Charging 14 31 42
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LOCATION D:
Visi Size: -In this location 88 outlets are situated, we got
following values.
Visi Size No. of outlets
400 ltrs. 29
300 ltrs. 28
220 ltrs. 27
Others 04
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Rack Type: - As we know there are two types of rack,
(a) Gravity, (b) PVC. We can mention its result by the table.
Rack type No. of outlets
Gravity 36
PVC 52
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Visi Purity, Rack Purity and Visi POG: - we can present it by
following table.
Options Visi Purity Rack Purity Visi POG
Yes 43 46 12
No 44 41 75
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Visi Charging and Rack Charging: - In this location we came to
know following results.
Percentage 0% to 50% 51% to 75% 76% to 100%
Visi Charging 17 13 48
Rack Charging 19 32 37
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LOCATION E:
Visi Size: -In this location 114 outlets are situated, we got following results.
Visi Size No. of outlets
400 ltrs. 45
300 ltrs. 20
220 ltrs. 40
Others 09
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Rack Type: - Out of 114 outlets we got 56 gravity rack and 58 PVC rack.
Rack type No. of outlets
Gravity 56
PVC 58
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Visi Purity, Rack Purity and Visi POG: - we can present it by
following table.
Options Visi Purity Rack Purity Visi POG
Yes 73 76 19
No 41 38 95
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Visi Charging and Rack Charging: - In this location we came to
know the following results.
Percentage 0% to 50% 51% to 75% 76% to 100%
Visi Charging 60 37 17
Rack Charging 44 47 23
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LOCATION F:
Visi Size:-In this location 38 outlets are situated, we got following
results.
Visi Size No. of outlets
400 ltrs. 15
300 ltrs. 07
220 ltrs. 13
Others 03
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Rack Type: - Out of 38 outlets we came at this result.
Rack type No. of outlets
Gravity 16
PVC 22
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Visi Purity, Rack Purity and Visi POG: - we can present it by
following table.
Options Visi Purity Rack Purity Visi POG
Yes 26 26 9
No 12 12 29
(No. of Outlets)
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Visi Charging and Rack Charging: - In this location we came to
know following results.
Percentage 0% to 50% 51% to 75% 76% to 100%
Visi Charging 5 11 22
Rack Charging 9 9 20
(No.of Outlets)
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LIMITATIONS OF THE STUDY
(a) Difficult to contact the appropriate Retailers - It is
enigmatic task to collect the appropriate data to selective retailers
because we did not have proper address of outlets.
(b) Difficulty in finding the information – Regarding visi’s
purity, rack purity, charging information, it was difficult to
observe because they are dynamic in nature.
(c) Time consuming- It was not an easy task as there is need
internal information about the concerned outlet and needs a strong
relationship building with appropriate person of the outlet. We had
to cover long distances like Gaunar, Kishangarh, and RIICCO
area.
(d) Lack of tools and techniques- We were not having any type
of tools and techniques in deciding visi purity, rack purity,
charging percentage. In this case we observed them by personal
observation method.
(e) Many times the concerned respondents from whom the
information has to take were having time constraints.
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Economical Utility of Study
If we look the other side of picture, we can see economic utility
of our study. During our survey, we were also collecting average
volume sales data through a Questionnaire (see it at page no.74).
After collecting this data from 100 outlets (Gold club Retailers)
we came to very strange results. Before presenting those results,
we can mention some assumption, which we took during this
survey.
Assumptions:
(a) Retailers gave right information regarding their
volume of sales.
(b) Researchers are very much efficient to calculate (observe)
without any tool.
(c) There is possibility that this positive relationship is only a
coincident.
(d) In our study, we assumed that one retailer is having one
Pepsi Visi
Now we can show results by following tables and diagrams.
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(Table: 1)
S.No. Rack Charging Average No. of Bottles Sold per Month
(300ml. and 2 litter)
1 50% to 70% 250-300
2 70% to 90% 350-400
3 Above 90% 450-500
As we can see in our diagram SS curve is Positive that tells that
if we increase Rack and Visi charging then Number of bottles
sold in a month also increases. This result shows an important
combination between sales and purity. In economics language
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Average No. of Bottles Sold Per Month
Rack/Visi Charging
SS Curve
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we can say there is a positive relationship between sales and
Purity (Rack & Visi).
(Table: 2)
S.No. Rack & Visi Purity Average No. of Bottles Sold per Month
(300ml. and 2 litter)
1 No 300-400
2 Yes 400-425
In this table we are trying to show that there is also positive
relationship between Purity and volume sold, But this time SS
curve is around 25 to 30 degree, it means if there Purity is
increasing then sales will increasing but not so much. We can
show it by following diagram:
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In our diagram, we can see SS curve is still positive, but
Increment in Number of Bottles is not as much as Purity
increment.
Table: 3
S.No. No. of Brands of
PepsiCo(beverages)
Average No. of Bottles Sold per Month
(300ml. and 2 litter)
1 1-3 150-200
2 4-6 300-350
3 7-9 400-450
4 Above 9 500-600
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SS Curve
Average No. of Bottles Sold Per Month
Visi & Rack Purity
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This diagram is telling us that there is a strong positive
relationship between no. of Pepsi brands and Average no. of
bottles sold per month. In other words, we can say that if retailers
are having more brands there are more chances of high sales. We
can see arrow keys are not similar.
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SS Curve
Average No. of Bottles Sold Per Month
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No. of PepsiBrands
Page 70
FINDINGSIt was a great experience to accomplish this task. After completing
this task we got these findings: -
In some areas, retailers were not satisfied with supply. For
example Sindhi colony, Agra road etc.
According to retailers, they are not getting proper scheme of
Pepsi. In Amer road this problem was very common.
In some shops visis are out of order, these area are Main city
and Agra road.
In some shops, visis are not available. According to company’s
data some outlet should have visi, but in realistic world they did
not have visis.
Most of retailers were complaining about cooling. This problem
mainly is occurring with 300litres and 400litres.According to
them 165 liters visi is perfect for cooling, but it is small.
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In some shops, retailers are not using visis rightly. They are
using it for their personal use and keeping other products like
milk, butter and other soft drink.
Some of them were unhappy with replacement of products.
Some retailers were saying that there is no good replacement
plan in Pepsi; they have to wait 3-4 weeks for it.
The popularity of Pepsi is increasing day by day. Its new
products like Pepsi My Can, Nimbooz are getting success.
PepsiCo schemes are very popular. Now a days its Pepsi gold
coin is on its peak.
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RECOMMONDATION
Supply problem should be solved immediately: - As we mentioned
earlier many of locations are suffering from lack of supply. Either
they are not getting all types of brands or at particular time. Mainly
these locations are Agra road, Amer road and Sindhi colony etc. We
can recommend this to company so that retailers can easily get their
desired products at right time.
Recommendation to the company for good replacement policy: -
According to the retailers, they are not having good replacement
policy from company side either company is taking very long time or
not changing them.
Transparency between company and retailers:-For the beneficial
of both side it is necessary that a clear picture will come in the play
mainly in the schemes related problem it quite should be transparent.
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Target the untapped market: - Large part of market is still
uncovered .Basically in the villages Pepsi have to fight with local
brands like Lijjat, Mahak etc. These local players play with low price.
Regular checking of visis: -There should be a schedule for checking
regularly of visis. We can suggest that it should be done either weekly
or fortnightly.
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Questionnaire
1. How many visis do you have?
(a) One
(b) Two
(c) More than Two
2. How many visis of Pepsi do you have?
(a) One
(b) Two
(c) More than Two
3. How many Pepsico brands do you have?
(a) 1-2 (c) 6-9
(b) 3-5 (d) Above 9
4. What is the average no. of bottles (300ml, 2liters) sale in a month?
(a) 100-150 (c) 300-450
(b) 150-300 (d) 450-550
(e) Above 550
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Bibliography
S.No. Name of Author Name of Book Publication Year
1. Kothari, C.R. Research Methodology Wishwa Prakashan
(New Delhi)
1985
2. Sadhu,A.N. and
Singh,Amarjit
Research Methodology
in Social Sciences
Himalaya Publishing
House (Bombay)
1980
3. Ghosh, B.N. Scientific Methods and
Social Research
Sterling
Publication (New
Delhi)
1982
4. Gopal, M.H. Research Reporting in
Social Sciences
Dharwar
Publication
(Karnataka)
1965
5. Tandon, B.C. Research Methodology
in Social Science
Chaitanya
Publishing House
(Allahabad)
1979
Important Search Engine:
www.pepsico.com www.google.com
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