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Juice Market Analysis-

Tropicana & Competition

Section B

7/23/2010

Alok Mahajan

Table of Contents

Review of Related Literature.................................................................................................7

FMCG Industry Snap Shot:..................................................................................................15

FMCG industry size.................................................................................................15

Category Wise Share of Sector:.............................................................................16

FMCG Growth: urban and rural..............................................................................16

India: Consumption Story.....................................................................................................18

Segmentation analysis for fruit juice................................................................................19

Geographic segmentation:......................................................................................19

Demographic segmentation:...................................................................................19

Socio-economic segmentation:...............................................................................20

Psycho graphical segmentation:.............................................................................20

Details of Actual work undertaken......................................................................................23

Tropicana-Impulse Buy........................................................................................23

Tropicana: Extremely Lucrative product for Retailer..............................................23

Classification of Market: Delhi & NCR....................................................................25

Understanding Market Scenario:-Faridabad...........................................................28

Understanding Reporting Hierarchy and Responsibilities:-....................................29

Myopic Hierarchy View-Faridabad..........................................................................30

Understanding -Merchandising/ Displays: -............................................................30

Distributor’s Role.....................................................................................................31

Understanding Mechanics of Distribution Channel.................................................32

Distributor Web in Delhi &NCR(Faridabad & Gurgaon)..........................................36

Faridabad Market:-..................................................................................................38

S.W.O.T analysis of Faridabad Tropicana Market...........................................................39

Area Details.............................................................................................................40

Birds Eye View-Central Delhi..............................................................................................41

2

Coverage Areas-Finding Tropicana Gaps..............................................................41

Questionnaire Details for Tropicana –Central Delhi...............................................42

Survey Form-Explained Logic & Underlying Need...................................................43

Sales exercise:-.......................................................................................................44

Pricing of Tropicana and Gatorade.........................................................................44

Sales Progress:-......................................................................................................45

Estimation Exercise...............................................................................................................47

Estimation Exercise................................................................................................48

Understanding Fields -Manpower Estimation.........................................................48

Deciphering-Man power Estimation........................................................................48

Market under Scanner:-Karol Bag..........................................................................52

Karol Bag:-Deciphering Ground Reality.....................................................................53

Market under Scanner-Gole Market, C.P, Pahar Ganj...........................................54

Gole Market, C.P ,Pahar Ganj:-Deciphering Ground Reality.................................55

Market under Scanner-Chandni Chowk..................................................................56

Chandani Chowk:-Deciphering Ground Reality........................................................57

References and Bibliography.

3

Title of the Project undertaken

Juice Market-Tropicana & Competition Analysis

Need & Objectives of the projectTropicana business for PepsiCo in Delhi is not reaping profits for the firm. PepsiCo’s

Tropicana in juice market faces a daunting challenge from Dabur's Real in Delhi.

Dabur’s has staggering 60% market share in Industry whereas as of now Tropicana

stands at meager 20%.So clearly there is a visible gap in terms of market presence

where Tropicana is lagging. According to survey done by AC-Nielson ,out of 60,000

shops Tropicana is present only in 12000 shops and price of knowing the name of

shops cost 12L to company/ Need of this project was felt as company wanted to

depict the real market scenario from Quality man power, free from any biases and

presenting the grass root level reality of the product’s presence in Delhi region. After

taking the feedback/suggestions from summer trainees they can work on their soft

spots. Secondly, company require practically innovating strategies on how to

increase sales figure from 75 Crore to 200 Crore-which clearly focuses on the big

picture and hence, enabling the brand Tropicana to increase its appeal and value.

Also the untapped shops asks for more resources for better coverage and better

execution.

On 17-04-2010 PepsiCo launched their new product Gatorade Sports Mix

Company’s aim is to make sure that Gatorade reaches the counter where Tropicana

is already present and also to make clients aware of the product

The following are the objectives of the product undertaken:

4

1. Find the market “Where Dabur’s Real is present but Tropicana is

missing??”-directly enabling the Tropicana to increase its presence across

new consumer base in turn increasing sales and hence forth increasing its

revenue

2. Calculating hidden sales from untapped markets and doing human resource

estimation.

3. Finding places where PepsiCo can sell its Tropicana in high volumes that

differ from traditional trade. E.g. placing Tropicana within the cafeteria of Life

Insurance Corporation facility located in “Canaught-Place” or placing

Gatorade at various fitness centre like Goldie’s-Gym to give incremental

growth to organization and hence increase its value.

4. How to optimize supply chain of Tropicana?

5. Why Dabur’s Real is ubiquitous across Delhi when compared to Tropicana?

6. How their business model differs?

7. Do Competitive analysis of margins and scheming of beverage industry-find

out the retailer margins and distributor margin of competitor beverages. This

will enable organization to know what offerings are competitors making to

clients,

8. Preparing a blue print on how to turbo charger the sales of Tropicana from

75Crore Last year to 200Crore this year

The entire project was divided into three phase:

Review of Related LiteratureThe study of related literature for conducting research is important and helpful in

understanding the need for the research undertaken. It is also done in order to

familiarize oneself with the work that has been done in the areas of one’s interest

and to get some useful information in order to understand the problems and issues

of the research topic. Thus, it was essential to review the relevant literature for the

variables of feeling of alienation and frustration and the effect of guidance on the

5

above mentioned variables of mothers of mentally challenged children. Only the

major research findings are given here below.

MARKETING:

Marketing is an integrated communications-based process through which individuals

and communities discover that existing and newly-identified needs and wants may

be satisfied by the products and services of others.

Marketing is defined by the American Marketing Association as the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging

offerings that have value for customers, clients, partners, and society at large. The

term developed from the original meaning which referred literally to going to market,

as in shopping, or going to a market to buy or sell goods or services.

The Chartered Institute of Marketing, which is the world's largest marketing body,

defines marketing as "The management process responsible for identifying,

anticipating and satisfying customer requirements profitably.

Marketing practice tended to be seen as a creative industry in the past, which

included advertising, distribution and selling. However, because marketing makes

extensive use of social sciences, psychology, sociology, mathematics, economics,

anthropology and neuroscience, the profession is now widely recognised a science,

allowing numerous universities to offer Master-of-Science (MSc) programmes. The

overall process starts with marketing research and goes through market

segmentation, business planning and execution, ending with pre and post-sales

promotional activities. It is also related to many of the creative arts. The marketing

literature is also infamous for re-inventing itself and its vocabulary according to the

times and the culture.

6

According to Boone Kurtz Mackenzie Snow, “Marketing is an organizational function

and a set of process for creating, and delivering value to customers and for

managing relationships in way that benefit the organization and its stakeholders”

MARKET SHARE:

Market share, in strategic management and marketing is, according to Carlton

O'Neal, the percentage or proportion of the total available market or market segment

that is being serviced by a company. It can be expressed as a company's sales

revenue (from that market) divided by the total sales revenue available in that

market. It can also be expressed as a company's unit sales volume (in a market)

divided by the total volume of units sold in that market. It is generally necessary to

commission market research (generally desk/secondary research, although

sometimes primary research) to estimate the total market size and a company's

market share.

According to David Campbell, George Stonehouse, Bill Houston (1999) ,market

share is measure of an organizations performance with regard to its ability to win and

retain customers. It can be measured by either volume or by value.

Malcolm McDonald(2002), highlights that Market Share is the proportion of actual

sales(either volume or value) within a defined market, and is thus a measure of

satisfying customers

MARKET SHARE ANALYSIS:

Market share analysis is an important part of market analysis and indicates how well a

firm is doing in the marketplace compared to its competitors. It is a part of marketing

research process.

7

Stages of marketing research process

Problem Definition

The first step in any marketing research project is to define the problem. In defining

the problem, the researcher should take into account the purpose of the study, the

relevant background information, what information is needed, and how it will be used

in decision making. Problem definition involves discussion with the decision makers,

interviews with industry experts, analysis of secondary data, and, perhaps, some

qualitative research, such as focus groups. Once the problem has been precisely

defined, the research can be designed and conducted properly.

Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objective or

theoretical framework, analytical models, research questions, hypotheses, and

identifying characteristics or factors that can influence the research design. This

process is guided by discussions with management and industry experts, case

studies and simulations, analysis of secondary data, qualitative research and

pragmatic considerations.

Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and verification of data.

Each questionnaire or observation form is inspected, or edited, and, if necessary,

corrected. Number or letter codes are assigned to represent each response to each

question in the questionnaire. The data from the questionnaires are transcribed or

key-punched on to magnetic tape, or disks or input directly into the computer.

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Verification ensures that the data from the original questionnaires have been

accurately transcribed, while data analysis, guided by the plan of data analysis, gives

meaning to the data that have been collected. Microsoft Excel is used for data

interpretation.

Cross Selling:

Khurana, author of Information technology for retailing defines cross selling as

sales techniques of selling additional products to existing customers

Jane W.D'Arista (1994) highlights that cross selling merely reflect an institutions

efforts to inform customer of other services available .Or it may involve explicit

packaging arrangements ,in which access to one service depends on purchase of

another

According to Galit Shmueli, Nitin R. Patel, Peter C.Bruce (2007) cross selling is an

opportunity. Once a customer has "taken the bait" and purchase one product, try to

sell them another while you have their attention

Visual Merchandising

Bhalla author of Visual merchandising sates that -Visual merchandising is defined as

the presentation of any and all merchandise at its best:(i)color coordinated-

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(synchronized-colors),(ii)accessorized(related-roducts/props);and (iii)self explanatory

(descriptive/illustrative)

Visual merchandising is the activity of promoting the sale of goods, especially by

their presentation in retail outlets. (New Oxford Dictionary of English, 1999, Oxford

University Press)

Rosemary Varley (2001) indicated that visual merchandising is used for aspect of

product management that is concerned with presenting the product within a retail

outlet to its best advantage.

Ko Floor (2006) observed that Visual Merchandising injects life into the store as well,

dramatizing the brand and merchandise offer.

Nirupama Pundir observes that visual merchandising is the “icing on the cake”. It’s

the first tactical representation of projected merchandise that the customer will see.

10

Research Methodology adopted

Research in common parlance refers to search for knowledge

The term research refers to the systematic method consisting of enunciating the

problem , formulating a hypothesis collecting the data , analyzing the facts and

reaching the certain conclusions either in the form of solution towards the concern

problem or in certain generalization for some theoretical formulation .

Research Methodology is a way to systematically solve the research problem .It may

be understood as a science of studying how research is done scientifically.

For completing the project work, data inputs were collected from the following

sources:

Primary Data:

• Collected data through discussion with the Sales manager/Area sales

manager of PepsiCo.

Secondary Data:

• Collected data from personnel manual of Pepsi.

• Collected data from different magazines, journals, News papers and Internet.

Research method being followed is Survey Method and Observations. 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 Central Delhi.

After covering particular market data digging is performed and consolidated results

of each market is shown in organization in graphical format along with

suggestions/scope of improvement to maximize market penetration of our product.

This easy to understand data present the unbiased picture of market to the

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organization and helps them to create value for their product to customers by giving

them better services, higher management by letting them know their soft spots and

finding areas of immense potential in markets .Output of this survey was given as

feed back to Territory Development Manager and Area Sales Manager ,which when

consolidated is presented to upper management ,discussed in organizational

reviews .Area wise input is given to central executive of that region enabling him to

know the opportunities available for him to do more business which in term helps him

to achieve his target and ultimately yielding to better appraisal and growth in firm.

12

FMCG Industry Snap Shot:

FMCG industry size

In Rs billion MAT DEC 2008 MAT DEC 2009

FMCG Industry Size 1,023.9 1,161.1

Growth rate (%) 13.4%

Source: AC Nielson

Category Wise Share of Sector:

Source: AC Nielson

40% share of food products in F.M.C.G offers whole set of opportunity for juice

segment.

FMCG Growth: urban and rural

13

Juice Market -India

Indian Juice industry has emerged as a great opportunity for non-alcoholic drinks

market and poses great opportunity for many firms.

According to RNCOS (industry research firm) latest research, “Indian Non-Alcoholic

Drinks Forecast to 2012”, the juice market (including both fruit and vegetable) has

emerged as a fastest growing segment of the Indian non-alcoholic drinks market

over the recent past. Market research foresees the Indian market for fruit/vegetable

juices to grow at a CAGR of around 24% (in volume terms) and around 30% (in

value terms) from now till 2012.

It is learnt that convenience and natural taste together with health-consciousness

has played an important role in the growth of Indian juice market in recent years.

Sales have been boosted by the changing lifestyle of the Indian middle-income

group amid rapid urbanization. Furthermore, it has been seen that cola sales have

fallen dramatically after rising health concerns associated with it and this seem to

have benefited the fruit beverage industry. Tetra packs have emerged as a boon for

providing practically fresh and preservative-free juice.

14

Number of Indian players have been entering or expanding their portfolio into the

segment, after acknowledging the enormous future market potential. Dabur India, for

instance, recently planned to expand its offering under flagship fruit drink brand

'Real'. It is also planning to add two more variants as it eyes a bigger pie of the

Indian fruit-based juice market. Another player, Parle Agro, the maker of mango

drink Frooti, announced its entry into the 100% juice market in late 2008. Other

major brands include PepsiCo’s Tropicana and Coca-Cola’s Minute Maid.

India: Consumption Story

Estimated juice market in India is worth RS 600Crore.So with an ever-growing

customer base of Middle- Class, juice making companies will have wider access to

consumers who can shell out money to buy juices.

15

So we can say with ever increasing disposable income and increasing awareness

among consumers there is immense potential in Juice market in upcoming years.

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Segmentation analysis for fruit juice

Introduction:

India is the second largest market for foods and vegetables in the world. The

production of fruits account for 48.5 million tones. However, the fruit juice market

has not been fully tapped because of poor infrastructure and storage facilities, and

highly unorganized market.However, with people turning more health conscious, the non-carbonated beverages

have become one of the fastest growing businesses. The major growth drivers in

fruit juice market are increase in health consciousness, disposable incomes, and

more sophisticated cocktail culture. The category of fruit juices are dominated by

Pepsi with its brand Tropicana, Dabur Foods with its brand Real, Coca Cola India

with its brand Maze. The market now has a variety of fruit juices like 100 % fruit

juice, nectar, fruit drinks, fruit-based milk drinks and fruit-based soya milk.

Geographic segmentation:

The fruit juice market share is concentrated in the metros like Delhi, Mumbai, Kolkata

and Chennai; mini metros like Benguluru, Hyderabad, Pune, Chandigarh,

Ahmadabad and small cities like Ludhiana, Amritsar and Jalandhar.

The growth of the fruit juice market increased with the proliferation of the

supermarkets and malls in the metros and mini-metros.

As a growing category, fruit juices must fight the battle to win the shelf space of

markets. Hundreds of new beverages are introduced every year. Even though more

supermarkets are being built in a larger size, their shelf space is still unable to

accommodate all of these new beverages in the market.

Demographic segmentation:

The regular consumers of fruit juices are children, educated housewives, executives,

working professionals, young health-conscious adults and the ageing population.

The fruit juice companies have targeted all the age groups by different juices. The

customized packaged fruit juices are targeted at kids below 6 years. They are

available in number of flavors and fortified with calcium which is required in higher

17

quantities by children below 6 years of age. Further, they are available in 200 ml

packs which are just right for kids.

The different pack sizes like the half and one liter pack are aimed at increasing the

in-home consumption of juices.

Fruit juices are an instant source of energy which helped in tapping the

sportspersons and kids who are actively involved in sports. For example, Pepsi’s

Tropicana has tied up with equestrian sports and polo clubs to build bridges with the

well-heeled young adults.

The increasing cost of health care has helped widen the customer base to the

ageing population. Also, as fruit juices are rich in energy and nutrients, ill and post

surgery patients on liquid diet have increased the customer segment.

Socio-economic segmentation:

The fruit juice market has shown a tremendous growth in the recent years. One of

the major reasons for this is the increase in the disposable income. Generally,

individuals belonging to higher and middle socio-economic strata are the regular

consumers of packaged fruit juices. However, the 65 ml packs of mango Frooti

launched in Pune by Parle Agro for Rs. 5 has aimed at broadening the socio-

economic customer segment.

Psycho graphical segmentation:

Healthy living is a growing trend. However, fruit juices have more to offer than just

health. They provide an easy gateway to a healthy lifestyle. Consuming fruit juices is

almost an effortless switch compared to dieting or exercising and it does not require

major behavioral change. Active and health oriented people are no longer the

primary consumer of fruit juices. Nowadays, the consumer base for fruit juices is

broader. These products attract a wide range of consumers ranging from those

having specific health needs to those simply looking for healthy refreshments. In the

next few years, the fruit juice industry will be challenged by these savvy, confident,

and opinionated consumers. They no longer see these beverages as simple thirst

quenchers with health benefits. They see these products serving other needs that fit

a simple and logical proposition, such as ease of preparation, high level of

availability, ergonomic packaging, portability, and other factors that make up an

individual's perception of value.

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In order to attract the kids segment, the Tetra packs have animated fruit characters

which communicate the fun, taste, and nutrition aspect. Moreover, the parents can

give their children a portable beverage that is a healthy alternative to the nutritionally

bankrupt soft drinks. They are designed in such a way as to fit in the Tiffin boxes.

Further, there has been an increasing interest in more natural, organic products.

Consumers perceive this as the next best thing to having a fresh fruit. Convenience

is no longer the selling point, the naturalness is.

However, there are certain consumers who are wary of packaged food, as they feel it

has preservatives and are not fresh. Thus, companies like PepsiCo, Dabur Foods

Ltd. have developed preservative free fruit juice offering consumers with a great

taste and wholesome nutrition of freshly squeezed juice in hygienic and attractive

packs.

However, despite of health benefits, some youngsters love to drink only carbonated

soft drinks. Thus, some companies have developed carbonated fruit juices which do

not contain caffeine and caramel coatings that are harmful to health.

The increased consumer interests in fruit juices can also be attributed to the addition

of minerals, vitamins and herbs associated with health, vigor, longevity and

enhanced quality of life,. There is a niche which is now demanding more top quality,

premium products and produced with added vitamins, minerals, fibs, soy or omega-

3. There are niche customers who take juice as a part of their diet and do not bother

about the taste.

• For many consumers, flavor is the deciding factor. While orange, apple and

mango dominate the market, other juices such as grapefruit, watermelon

and orange-carrot combination are also appealing to some. In order to

match the traditional taste buds, traditional recipes like Aaam ka Panna and

jamun variants have been introduced in the market.

• Conclusion:

• Product development and positioning will need to become more targeted,

shifting from mass market to a mass customized approach in which

particular audiences are identified by lifestyle, ethnic group and other

factors. Thus, the fruit market is very lucrative. Among the market drivers are

the increasing cost of healthcare, ageing population, consumer health

19

awareness and choice and scientific evidence of certain ingredients.

Details of Actual work undertaken

20

Tropicana-Impulse Buy

PepsiCo sees Tropicana as an Impulse buy in India hitherto and not a planned

purchase. Aim of Tropicana division is to make it a planned purchase within Indian

community and make it a part of consumer’s daily breakfast. Impulse buy means an

unplanned buy .When a family is going to market for grocery shopping, name of

Tropicana Juice is never mentioned in the shopping list. It is only at the moment

when consumer enters a shopping store and sees Tropicana he picks it up and buy.

So SHELF-VISIBILITY is an important facet for sales of Tropicana. F.M.C.G goods

like tooth paste, soap are planned purchase.

Aim of Tropicana Division In PepsiCo’s Gurgaon office is to make Tropicana a

planned purchase rather than an impulse buy.

Tropicana: Extremely Lucrative product for Retailer

Being a great health product for consumer it is also a very lucrative product for

retailer as well. It offers a trade down margin of 15% in addition to additional

scheming that can go up to 5% for Traditional Trade. Margin of Distributor is 5%.

For easier assimilation look at the below table

Tropicana 1 L Price INRCost Distributor 62.10Cost Retailer 65.21Cost Consumer (M.R.P) 75Margin Retailer 9.78

So a 1L pack of Tropicana with M.R.P 75INR cost 65 INR to Retailer generates a

handsome margin of 9.7 INR. So a Wills Navy cut Cigarette costing 5INR generates

margin of 50paisa to retailer. So on selling 20 cigarette retailer generates a revenue

equivalent to selling 1 L Tropicana. So a sale of 100 INR retailers of 20 cigarettes

makes the same amount from sale of 75INR Tropicana 1L.

21

Classification of Market: Delhi & NCR

In Delhi Tropicana and Gatorade is sold in 3 trades

1. Traditional Trade-Traditional Trade is defined as all that trade that flows through

traditional outlets, such as kiosks, corner shops, local mom and pop shops, open

markets, etc. It represents all trade with the exception of that which flows through

retail chains, supermarkets, or super stores

22

Key Characteristics

a) Traditional trade is characterized by a large complex network of

independently owned retailers and distributors carrying primarily local or

regional brands.

b) It is the prevailing form of consumer trade in emerging markets.

c) It can be difficult to penetrate for both national and multi-national firms given

its highly fragmented nature, yet it serve as the conduit for reaching the

largest percentage of the consumer population

Importance of Traditional Trade can be very easily judged by the following data

For Tropicana division Traditional Trade forms heart of their business, so they

make their best to maximize the penetration at T.T.

Modern Trade:- Modern Trade is defined as all that trade that flows through retail

chains, supermarkets, or super stores, etc.

23

Key Characteristics:-

a) Above an indexed covered area (different users have different indices but

safe to say 3000 sq. ft. as the minimum)

b) SKUs above an index number (again, different for different users, but again

safe to peg it at above 2500)

c) Bulk Buying/ Inventory management

d) PAN India Presence.

e) Discounting (and frequently passing it out to customers as well)

f) Self Service with electronic billing and credit

g) Example: Big bazaar, Wal-Mart, , Reliance Fresh

S.A.M.T:-To much of the extent it is similar to M.T but it may/may not have

multiple chains of stores

.Example:-Garg -Dastak, Needs (18 stores in Gurgaon ,SRS ,Big Apple,

EzeeDay

Understanding Market Scenario:-Faridabad

Initially to have a better understanding of how things work and to get doubt cleared

we were instructed to meet Central Executive of Faridabad for two days.

Market Covered

Sector Covered Number of Shops

24

28 529 430 6

Mom and Pop Shops 12

Modern Trade Vishal Mega Mart,SRS

Smart Facts-Faridabad

a) Suburban City-Over 2 Million Population

b) Generate about 60% revenue of Haryana State

c) 50% I.T collected Haryana comes from Gurgaon & Faridabad

Learning’s: Faridabad-

Understanding Reporting Hierarchy and Responsibilities:-

One Central executive is responsible for execution of Tropicana in Faridabad. He

leads a team of three P.S.R (Pepsi sales representative) and three merchandisers

Before the morning visit start C.E talks with all P.S.R’s and list down progress of

previous day, compares it with actual target and gives them the feedback. Also he

asked for the current days plan and any issues being faced by them. Task of C.E is

to execute so it’s his responsibility that Products are being executed in the market up

25

to the mark, sort out any grievance that P.S.R is having issues with, fix out pricing of

Shop in Shop.

P.S.R is responsible for taking orders; managing new customer base and

merchandiser are responsible for doing visual merchandising on all the shops.

Mode of transportation for merchandiser is bicycle and for P.S.R is motor cycle.

Each P.S.R covers daily 30 shops and merchandiser 25 shops.

Every P.S.R has a Tropicana route book. It contains the following fields

a) Name of Shop.

b) Stock Details of Retailer

c) Order Details –Previous Order Details, Current order details

d) Replacements if any

This route book serves as input for distributor for order processing. Also data from all

P.S.R is consolidated by C.E and presented to Area Sales manager.

Myopic Hierarchy View-Faridabad

This is a myopic hierarchy because it sees the market from a grass root level and

deals with people that only interact with retailers on a daily basis.

Understanding -Merchandising/ Displays: -

Proper merchandising and display at the store level promotes sales; it promotes the

consumer to switch over to the displayed brand ignoring existing brand loyalties; it

persuades him to buy “now” rather than latter; and it makes him buy more than the

26

originally intended quantity. All these are essentially sales promotional functions. While

advertising can only make a consumer aware of the product or generate a desire for it,

merchandising/ display often motivates a consumer to buy a product instantly. Point of

purchase displays are one of the most widely used sales promotions tools. With the

proliferation of brands, innovative displays have become a prerequisite for success. In

the store brands compete with each other for consumer’s attention.

Display Enhance Counter Pull

Display at the point of purchase can be rightly describe has a “clincher” in the marketing

process. When awareness and interest has been created in the consumers mind

through advertising and other promotional measures, a good display in the store can

help to clinch a sale. The displays are also effective in inducing brand switching. A

consumer normally goes to a retail outlet to purchase his usual brand. At the retail

outlet, a good display of a competition brand can command his attention and he may

buy the competing brand. In other word Good display can lead to impulse buying and

brand switching. A good display is the surest way to attract the consumers. It pulls the

consumers to the consumers. In fact, displays have their origins in the age old saying

that “goods well displayed are half sold”.

Display can be of various types- window display, wall display, counter display, aerial

display, or floor display, depending on where it is fixed. Display materials to constitute a

large spectrum, like posters, danglers, stickers, mobile wobblers, steamers, balloons,

etc. To enhance the display effect, manufacturers use several gadgets and approaches.

Illuminated designs, motion displays, sky writings, etc., add to the display effect. Some

companies organize display units locate them at vantage points within the store to

attract store traffic. Skillfully designed and strategically located display units can

enhance the sales appeal. More and more firms are going in for innovative displays to

give their brands visibility.

Distributor’s Role

There is one distributor that serves entire Faridabad region. Along with Tropicana he

also deals with other products of Godrej Ambi Pure, Parachute hair oil to name a

27

few. Distributor is appointed by the company and following points are taken into

consideration while appointing a good distributor.

a) Distributor needs to have good market reputation and links.

b) He should have good infrastructure to carry out day to day operational

activities-distributor must possess a warehouse, vehicle for delivering order

and manpower who can work as P.S.R and Merchandisers.

c) Other products that distributor sells also plays an important role and tells

about reputation and worthiness of distributor.

Salary of P.S.R and Merchandiser is paid by the distributor that later is reimbursed

by the company, .P.S.R and Merchandisers are not on company pay roles.

It must be noted that it is the Distributor and P.S.R who sells the product and not the

Company official. So an assiduous distributor is required to ameliorate the product.

Understanding Mechanics of Distribution Channel

The supply chain of products in the FMCG market in India is one of the longest

supply chains an industry could really have. There are as many as 5 levels of

intermediaries involved in the entire supply chain through which a product passes

before reaching the end consumer. What has been observed is that even though

these FMCG companies are big multinationals and Indian but face a major challenge

of making their products available in the market in the right quantities and in the right

time. This is simply because these companies don’t really have a wide network of

sales agents and other force which is required and is ideal for catering their products

to the markets.

This aspect is taken over by distributors, wholesalers and retailer whose margins on

these products actually double the price of these products when a final consumer

buys it. The margins kept by these intermediaries range from 2% to 5%.

The products in this industry are transported from manufacturing units via c & f

agencies or warehouse to distributors who further sell the same to wholesalers or

stockiest who finally sell it to the retailers in the market. These products are

28

transported either via roadways or railways within the domestic markets and

normally don’t take more than a week to reach the retailers. FMCG products are

normally a high volume ball game and products have to essentially be available in

the market at all given points of time and at all given points of purchase and

therefore the distribution activities are highly volatile and dynamic. The supply of

products takes place virtually on a daily basis in fixed quotas or otherwise, to

retailers as per their requisitions and the anticipation of demand and the

performance of products in the recent past. All such criteria are taken into

consideration before the quantum of products being dispatched to the next level of

intermediary. Since it’s a volume game, manufacturers make all possible efforts to

boost sales and promote their distributors to earn more and more orders from the

retailers and wholesalers. A close check is maintained on the flow of the products on

a daily, weekly, fortnightly and monthly basis to determine the trend in the business

and flow of products and consumption. This activity also helps to find out drawbacks

of the distribution system, if any, and rectify them within time.

29

30

Factory

Carry and Forward

Distributor Modern Trades

Wholesalers

Retail Trade

Consumers

Distribution Cycle-Tropicana and Gatorade

Tropicana is manufactured in India in Pune. From Pune goods are supplied to Carry

and forward agent .Carry and forward agent furthers supplies it into two divisions:-

1) C&F Agent directly send the goods to Modern Trade like Big Bazar ,Spencer

2) C&F Agent send it to distributor.

Distributor further can sell the goods to retailers or wholesalers.

31

1) Wholesalers further sell goods to retailer which then is received by the

consumers.

2) Retailers receiving goods directly from company’s distributor can sell goods to

consumers.

Advantages of purchase from Companies Distributor over Wholesalers.

32

Distributor Web in Delhi & NCR ( Faridabad &

Gurgaon)

So there are total 12 distributors doing business for Tropicana.

33

34

Faridabad Market:-

Faridabad is a developing city .Population is unevenly spread, some places are lying

vacant and some places are densely populated. Since, it is a growing market

retailers are very friendly .Width wise coverage is excellent and the company is

working on the concept of depth. It implies that number of shops covered is healthy,

but since it’s a growing depth of Tropicana can be grown, means more cases can be

sold.

In sector 28 there are line of shops that only keep Tropicana and not Real. People

are buying Tropicana and scheme of one glass free is doing wonders for company.

But places where Modern Trade and Traditional trade are located nearby concept of

cannibalization can be seen. A M.T offers Tropicana at Rs 60 where as T.T is selling

the same thing for Rs 75.So consumer prefers to go to M.T rather than T.T

Visual merchandising needs to tighten up .Attractive merchandising are missing

Proper Utilization of P.O.P material needs to be done.

Consumer trends differs according to areas (sector) Counter's Infrastructure & Stock

Holding Capacity differs according to the areas

Also consumer still think of Tropicana as imported product and very few people know

that it is a product of PepsiCo. So customer awareness is lacking

Since Faridabad is a growing city many educational institutes, hotels, private

organizations are mushrooming in the city, so there lies a big opportunity for

Tropicana to sell.

35

S.W.O.T analysis of Faridabad Tropicana Market

So, Faridabad is like a ticking time bomb for Tropicana that is still to explode and is

area of immense potential.

Survey Details:Area assigned to me was Central Delhi.

Area Details

Central Delhi is an administrative district of the National Capital Territory of Delhi in

India. It is bounded by the Yamuna River on the east and by the districts of North

Delhi to the north, West Delhi and South West Delhi to the west, New Delhi to the

south, and East Delhi to the east across the Yamuna.

Central Delhi has a population of 644,005 (2001 census), and an area of 25 km²,

with a population density of 25,759 persons per km².

Central Delhi houses the central business district and high-rises. It includes

Shahjahanabad (Old Delhi) which served as capital of the Mughal Empire, and is

home to the monuments like the Delhi Fort and the Jama Masjid, Delhi's principal

mosque.

36

Birds Eye View-Central Delhi

Coverage Areas-Finding Tropicana Gaps

Areas given below were covered to find market gaps

S.No Area Name

1 Chandni Chowk2 Karol Bag

3 Canaught Place

4 Patel Nagar –WestPatelNagar,EastPatelNagar,SouthPatelNagar

5 Old Rajinder nagar

6 Sadar Bazar7 Pahar Ganj8 Gole Market

9 Jhandewalan10 Shadipur11 Pahar Ganj

Questionnaire Details for Tropicana –Central Delhi

37

Serial .No Fields of Questionnaire Data to be filled1 Name of Shop Shop Name2 Address Shop Address3 Contact number Phone number4 Real Present Yes/No5 Tropicana Present Yes/No6 Real Facing Number of facings of Real

7 Tropicana Facing Number of facings of Tropicana8 Real Stock Estimation-Real Stock

9 Tropicana Stock Estimation-Tropicana Stock

10 Tropicana PSR present Yes/No

11 Gatorade Powder Present Yes/No

12 Visual Merchandising Excellent/Poor/N.A

13 Estimated

Consumption(week)

Cases consumption in a week

14 Issues/suggestion Feedback retailer/surveyor

Survey Form-Explained Logic & Underlying Need

1) Name, Address and contact number of shop: - Enables speedy communication

for business transactions and concerned business related exercise. Also can be used

for future purposes, become a reusable component for the organization.

2) Real present:-: This tells about competitor’s availability.

3) Tropicana present:-: This tells about Tropicana’s availability.

4) Real Facing:-It implies how many packs of juices are kept on the shelf of retailer.

38

Company pays a price to retailer for good display. Good number of Real facing

display implies good sale of Real at that shop.

5) Tropicana Facing: - For every 8 facings company gives a scheming of 4% to retailer

after 3 months. Facings of Tropicana are compared with respect to Real to

guesstimate sales with respect to each other. Also it tells about how big is the share

of eyeball of customer with respect to Real

6) Real Stock: - Competitors judgment of stock.

7) Tropicana Stock:-Used with information of Real’s stock to know competitors status...

8) Tropicana PSR present: - This will tell that is P.S.R visiting newly opened shops in

the region or not. It is a hypothesis that for every 250 people there is one shop, so

with ever increasing population new shops open up in the reason. It is commonly

noticed that P.S.R are reluctant to visit new shops and keep on sticking to the old

route plan that they have. So this tells about the un –explored avenues for selling our

product.

9) Gatorade Present:- Aim of PepsiCo is to make sure that where 1L Tropicana is

present, there must be one mono carton of Gatorade present too .This is a classic

example of cross-selling and it checks with how much efficiency their workforce is

carrying out cross selling exercise.

10) Visual merchandising: Check if merchandising done properly or not. This tells the

real picture about how merchandisers are doing their job. A good merchandising is

vital for healthy sales, it act as a value add for Tropicana sales and become critically

important as Tropicana is considered an impulse buy.

11) Estimated Consumption: By seeing Tropicana stock we have to judge their

estimated weekly consumption, If stock is less than judgment then we can pursue

retailer to purchase more stock

12) Issues/Comments: - any particular issues seen/observed, suggestions by retailer or

any other issue noted by surveyor.

Sales exercise:-

Third phase of the exercise was to use the knowledge calculated from Phase 1 and

Phase 2 of the project and get some hands on experience with Sales.

Task allocated to me was to cover the traditional Trade of West Delhi that o not

poses a good picture for Tropicana Division and the same fact is evident from the

survey done on the same region.

39

Products to be sold were Tropicana and Gatorade(R.T.D and powder)

We were instructed to start from Distributor Point every day.

This used to serve the following purpose.

a) Give distributor the order received from market.

b) Calculate samples of product, example mono cartons for Gatorade.

c) To get acquainted with distributor activities

Pricing of Tropicana and Gatorade

Price-Case Quantity-Casing Margin Price-Casing SchemingTropicana100% 1L,12 piece 15% 887.0 1 carton free with 1

case or 8-10% Tropicana Nectar 1L,12 piece 15% 782.5 1 carton free with 1

case or 8-10%Tropicana 100% 200ml,30 piece 15% 573.9 1 case free with 5 caseTropicana Nectar 200ml,30 piece 15% 469.5 1 case free with 5 caseGatorade R.T.D 500ml,24 bottle 10% 763.6 1case+2 bottle freeGatorade Powder 35 g,24 mono carton

(1 mono carton -6

sachet)

18% 1830.5 1case+1 Monocarton

free

Sales Progress:-

S.

No

Name of Shop Address Contact

Numbe

r

Quantity-

Gatorade

Quantity-

Tropicana

Billing(Tropi

cana)

Billing(Gat

orade)

1 Maa Durga Store A-

22,MainNaj

abgarh

road,Uttam

nagar

987170

4070

2

Monocart

on-(1

orange+1

lemon)

1 case-100% 800 152.52

2 Madan store Prem

nagar,near

bikaneri

sweet(land

mark-metro

pillar

number

935009

4275

9Monocar

ton-(3

orange+6l

emon)

0 0 686.34

40

682-83)

3 Maa gaba trading

corporation

wz-

154,hastal

road,uttam

nagar

253735

665

1

monocato

n-orange

0 0 76.26

4 virdi

communication

Shop

No1,Shiv

Nagar,Jail

Road

921041

1097

6

Monocart

on-(3

orange+3

lemon)

0 0 457.56

5

Nanu bakers , Park,

Behind Jail

Road,

Petrol

Pump, New

Delhi

928996

1947

1

Monocart

on orange

1case-

200ml+1 case-

1L

1252.02 76.26

6 Nirmal Medicos Sl-1/3,L-

Block,hari

Nagar

931310

4016

2

Monocart

on-(1

orange+1

lemon)

0 0 152.52

7 Chaurasiya Pan

Bhandar

el-6,sno1,L

block,hari

nagar

1

monocato

n-lemon

0 0 76.26

8 Sindhi Sweet CA-

19A,DDA

flats, Hari

Nagar

281242

58

6

Monocart

on-(3

orange+3

lemon)

Present NA 457.56

9 Mohan Medicos 104-

ganesh

medicos

259916

44

1

Monocart

on

orange+2

rtd

bottle(1

orange+1

lemon)

0 0 139.88

10 Family bakery b-

85,ganesh

nagar

259903

05

2

Monocart

on-(1

orange+1

lemon)

Present 0 152.52

41

11 The body gear c-5,ganesh

nagar

921222

3415

2

Monocart

on-(1

orange+1

lemon)+3

rtd bottles

0 0 247.95

42

Estimation Exercise

Estimation plays a very vital part in business development .This helps the upper

management to set the road map for future and also let them know how can they do

more business. A good estimation give other employees in the department feedback

for their future tasks .For example if Tropicana wants to increase its sales by 70%

then it is result of some kind of estimation done earlier in business. Similarly a yearly

target of Central Executive of selling Rs 10 Crore juice is result of some kind of

estimation that is done earlier by upper management.

Tropicana department is following resource crunch. They are in dire need of skilled

manpower. So after doing market analysis across central Delhi next task was to

estimate how many numbers of shops are present in regions covered in central Delhi

where Tropicana and Gatorade can be sold.

After calculating amount of employees needed we have to find the associated cost

with them and then find out how much sales will they be able to generate. This data

is then used by company for further recruitments.

Following assumptions and facts were carried out while doing manpower estimate.

a) PepsiCo follows the hypothesis that for every 250 person there is one shop to cater

their needs.

b) Population in Delhi is growing at the rate of 1.4% every year.

c) Data of census-2001 was used and current population was calculated with the above

growth rate.

d) One P.S.R covers 180 shops in one week.

Estimation Exercise

Table -Manpower Estimation

43

Area Population

2010

Shop

covered -

Shop

covered

-me

Ratio=population/shop Shop

deficit

PSR

required

Jhandewalan 141928.50 20 14 7096.43 547.71 3.04

Gole+Cp 525904.50 115 33 4573.08 1988.62 11.05

Karol Bag 519930.37 170 30 3058.41 1909.72 10.61

Sadar Bazar 86656.30 7 9 12379.47 339.63 1.89

Chandni Chowk 189583.59 17 25 11151.98 741.33 4.12

Rajendar

Nagar

265863.38 65 14 4090.21 998.45 5.55

Patel Nagar 3947349.1

6

117 43 33738.03 15672.40 87.07

Pahar Ganj 733325.45 125 15 5866.60 2808.30 15.60

Total 64,10,541 636 183 25,006 138

Understanding Fields -Manpower Estimation

S.No Field name Logic

1 Area Name of area under calculation

2 Population Shows estimated population 2010

3 Shop Covered This shows how many shops are there in this region

4 Shops

Covered-me

Shops I covered

5 Ratio=populati

on /shop

This ratio shows that one shop caters to need of how

many people. Ideal figure is 250

6 Shop Deficit Tells how much unexplored shops are in this region

Deciphering-Man power Estimation

According to our estimation, there should be 25006 more shops in the above stated

areas that are still to be tapped in .Also we know one P.S.R covers 180 shops in one

week so to cover 25006 shops we need 138 P.S.R.

Sales Forecast Estimation from Institutions

This table shows immense potential in Institutions for Tropicana and Gatorade

44

Institutions Count Estimated Consumption 1 month Yearly

ConsumptionEmbassy 58 20 case 1L100% Rs.

1,23,47,040.0

0Psu Joint Venture 55 60 cases 200ml 100%,5 case

1L

Rs.

2,56,17,900.0

0Offices relating Sports 11 60 cases 200ml 100%,5 case

1L

Rs.

51,23,580.00Tourism and

Hospitality

4 60 cases 200mL,2 case RTd,1

case powder

Rs.

16,63,664.00Sports Complex 16 25 Cases RTD,6 case

powder,5 case 200ml

Rs.

54,19,200.00Colleges Under Delhi

University

83 40 cases RTD,60 cases Rs.

6,46,40,400.0

0Government

Establishments

72 60 cases 200mL,5 case RTd,1

case powder

Rs.

3,45,81,600.0

0BFSI 20 60 cases 200mL,5 case RTd,1

case powder

Rs.

96,06,000.00Cooperatives 8 60 cases 200mL,5 case RTd,1

case powder

Rs.

38,42,400.00Educational and

Training

93 60 cases 200ml,15 cases

RTD,2case powder

Rs.

5,52,25,260.0

0Cultural 21 60 cases 200ml,15 cases

RTD,2case powder

Rs.

1,24,70,220.0

0Hospitals(2006) 140 50 cases 1l,50 case 200ml,4

case powder,5case RTD

Rs.

14,14,23,240.

00Hotels 72 60 cases 1L,10 cases 200ml,20

case RTD

Rs.

4,59,82,080.0

0Private Engineering

Colleges(IP

85 60 case 200ml,5 case

Gatorade powder,case 10 RTD

Rs.

5,21,83,200.0

45

university) 0Gymnasiums 750 20 case RTD,5 cases powder Rs.

21,96,90,000.

00Schools 4862 40 cases 200ml,5 cases

RTD,5 cases Gatorade Powder

Rs.

1,42,61,14,06

0.80

Total 6350 Rs.

2,11,59,29,84

4.80

46

Understanding Yearly Sales Forecast:-

An institution is another dimension where lucrative business opportunity exists for

PepsiCo. From institutions we mean school,colleges,gymnasiums etc.These are the

places from where organization gets huge volume and since FMCG is largely a

volume based industry they play a very vital role for business growth. Tapping

institutions is a major concern for Tropicana department and leaving any of the

institutions means leaving lots of stones untouched and thereby not tasting a big

amount of business chunk.

According to our estimate there is an estimate of 211 crore that can be generated

from these institutions wit in one year. A mammoth 67% of business comes from

schools, followed by 10% for gymnasiums and 7% from hospitals.

School domination also helps company to form a stable customer base because

children who are drinking Tropicana since their childhood will keep on using their

services as they grow up.

47

Interpretation and Analysis

Market under Scanner:-Karol Bag

Karol Bag :-Deciphering Ground Reality

Karol bag, being a shopper’s paradise attracting high footfall of 2000 people a

minimum to say presents a huge opportunity to Tropicana and Gatorade. With

Gaffer-Market nearby it also attracts a lot of customer.

30% of Karol Bag has Tropicana Share, 3% is the share of Real whereas a

staggering 54% is a non juice market that in itself is a hidden opportunity to increase

business of the Tropicana.

Out of 16 shops where Tropicana is present ,Gatorade is present in only 3 shops

,making it present in only 11% of shops leaving out huge chunk of 89% of

Tropicana present shops. So there is a huge scope of improvement for Gatorade.

In W.E.A Karol bag P.S.R comes to take order at six in the evening. Since, that is a

peak season for retailers want P.S.R to come in morning. It should be noted that

Dabur’s P.S.R arrives at 12 P.M in those shops. Tropicana and Gatorade are

completely missing from 7 eating joints in Gaffar Market located just on the road

side.

Overall looking at the big picture a great execution and sincere efforts of Central

executive make it strength for Tropicana. Conversion of 54% non juice market into

juice market succored by leadership of Tropicana presents Karol Bag as a place of

enormous opportunities to “mint money” .

48

M arket under Scanner-Gole Market, C.P, Pahar Ganj

Consolidated Data => Gole Market, C.P, Pahar Ganj

Gole Market, C.P ,Pahar Ganj:-Deciphering Ground Reality

Tropicana’s Share is 46% in Gole Market,CP,Pahar-Ganj. ,6% is the share of Real

whereas 21%% is a non juice market that in itself is a hidden opportunity to increase

business of the Tropicana and at 27% shops both Real and Tropicana are present .

Out of 33 shops where Tropicana is present, Gatorade is present in only 3 shops

,making it present in only 11% of shops leaving out huge chunk of 89% of

Tropicana present shops. So there is a huge scope of improvement for Gatorade.

In Shaheed Bhagat Singh market visual merchandising needs an overhauling .In

spite of being available across the entire width showcasing definitely needs

improvement

Adding to it, Tropicana’s complete range of 100% is missing from A-class counters.

Gatorade and Tropicana were found absent from the canteen of Lady Harding

medical college.

Overall looking at the big picture a great execution and sincere efforts of Central

executive make it strength for Tropicana that can further be strengthened.

Conversion of 21% non juice market into juice market, presence of canteen of

prestigious Lady Harding College combined with great visual merchandising

succored by posh residence makes this region a ticking time bomb that is still to

explode.

49

Market under Scanner-Chandni Chowk

Chandani Chowk :-Deciphering Ground Reality

Chandni Chowk presents a very sorry picture for Tropicana and Gatorade.

Staggering 80% is a non juice market with 12% real domination. Width wise and

depth wise coverage of our product here lacks as Tropicana is found in only two

shops .Out of 25 shops P.S.R has visited only two shops which cut a sorry picture for

Tropicana and Gatorade.

Chandni Chowk forms heart of Old Delhi and attracts a lot of people including many

foreigners who visit daily with high brand awareness. There are many eating places

here and Tropicana and Gatorade can be made parts of many stores around here

So we can say Tropicana Division is keeping many stones untouched in this region.

A positive point of view can convert this road block into successful business

avenue for Tropicana if execution is done correctly and up to the mark with strong

merchandising.

50

Market Under Scanner-Jhandewalan

Jhandewalan:-Deciphering Ground Reality

Videocon Bhawan is the landmark for Jhandewalan. Tropicana domination is 9%

followed by real at 7%.Both products are simultaneously available with 7% shops

Mammoth 57% is the no juice market. Gatorade only covers 17% of all available

shops for Tropicana leaving a massive 83% shops untouched. This area is special

as it attracts a lot of educated and aware population due to presence of their

workplace at this location

Compared to real Tropicana poses as a winner but cross-selling of Gatorade needs

big needs improvement as only 17% of Tropicana present shops are covered by

Gatorade.

Visual merchandising needs a resurrection. Gatorade presence is not felt anywhere

in display except one shop, similarly no danglers, shine boards, banners for

Tropicana were present. Eating joints near cycle market and Videocon Bhawan are a

good place to do some major business of Tropicana 200ml and Gatorade R.T.D.

Merchandisers as well as salesman need to pull up their socks in this region to

explore its potential.

51

Market under Scanner-Sadar Bazar

52

Sadar Bazar:-Deciphering Ground Reality

Sadar Bazar on the footprints of Sadar Bazar presents a very sorry picture for

Tropicana and Gatorade. Tropicana is physically absents from all shops though

there are many locations where it can serve as hot cake.

Survey also reveals that people are interested in buying Tropicana and Gatorade but

No representative of Tropicana division visits here.

This place can also work as Great Avenue for selling juice in festival season. Sadar

Bazar is very famous part of old Delhi and attracts lot of localities as well as tourists

with high brand awareness. Every day it attract a huge footfall of not less than

7000 .So we can say Tropicana Division is keeping many stones untouched in this

Sadar Bazar.

A positive point of view can convert this road block into successful business avenue

for Tropicana if execution is done correctly and up to the mark with strong

merchandising Sadar Bazar can reap benefits for the Tropicana division.

53

Market under Scanner-South Patel Nagar

South Patel Nagar:-Deciphering Ground Reality

Scenario of Tropicana domination comes to a halt at South Patel Nagar. Real share

is huge 44% when compared to Tropicana’s meager share of 12%.No juice market

comprises of healthy 31% with both products being present at 13% shops.

Gatorade has acquired 25% shops and it still have to cover 75% of uncovered

Tropicana stores. Also cross selling of Gatorade needed to be pushed.

Visual merchandising is good here but can be made better .

Out of 16 shops covered P.S.R has not visited 12 shops clearly telling the reason of

Tropicana lagging behind. With residential areas in the vicinity and common middle

class with increased spending power coming here, this area possess a very lucrative

market with enormous potential for rise of Tropicana and Gatorade.

54

Market under Scanner-East Patel Nagar and R a jinder

Nagar

East Patel Nagar and Rajinder Nagar-Deciphering ground reality

Above avenue present a great avenue of business for Tropicana and Gatorade. With

affluent and highly aware customer base living in the vicinity this market poses a

huge potential for Tropicana and Gatorade. Tropicana is leading the area with 29%

exclusive availability with real having around 14% exclusive availability at the

stores .Both are present at 53% shops and meager 4% no juice market..

Just 4% of no juice market corroborates the statement that this place is a great place

for the Tropicana and Gatorade y.

Gatorade needs to push itself more in terms of cross-selling as currently it is

covering only 23% of Tropicana available shops with 77% untouched.

Visual merchandising is great at this place with two shop in shops also found.

Retailers are facing issue of delay in supply of Gatorade R.T.D (ready to drink)

.Keeping retailers happy, filling the gaps in the supply and growing width wise is the

key to success in the above mentioned area.

55

Market under Scanner-West Patel Nagar

West Patel Nagar-Deciphering ground reality

In West Patel Nagar market real’s is exclusively available in 14% shops and same

stands true for Tropicana. Both of them are together present at 22% of shops. A

staggering 50% of market is no juice market.

Gatorade id present in only 17% coverage area of Tropicana shops.

With both competitors equally balanced one who will convert the 50% non juice

market into juice market will emerge as the winner. These new outlets will also make

product visible across the entire market. West Patel Nagar market is a great example

of traditional trade and successful execution with powerful merchandising over here l

enable access to whole new customer base and new opportunity for their ever-

growing business.

56

Interpretation and analysis for Sales Exercise

We were able to sell 33 mono cartons of Gatorade, and 2 cases of Tropicana and

open 11 new accounts.

57

a) After visiting West Delhi brief was re instated that there are a lot of market gaps in

execution of Tropicana and Gatorade.

b) Visual merchandising needs to be resurrected in this region to have a higher share

of eyeball of customer.

c) Clients are not aware of Brand Gatorade and most of them don’t know that it is a

quality product from PepsiCo

Monthly Sales All Shops Rs.18896Yearly Sale-11 shop Rs.226752(Rs 2.26 L)

d) The body gear gym can do wonders for the sales of Gatorade and gives us an idea

that Gyms are the perfect place to sell Gatorade and generate lot of cash for the firm.

a. If one in one week we are able to sell 5 cases of R.T.D of Gatorade to Gym

(not a huge amount for gym with footfall of more than 100 a day) and 5 mono

cartons of Gatorade ensures a monthly sales of Rs 15268 and for mono

carton amount is Rs 1520.So yearly sales come out to be Rs 2Lakh app.

58

Competitor beverages Margin Analysis:-Competitor margin analysis is very important from Tropicana’s division point of view.

This enables them to keep a track on competition with latest findings..

This exercise is very exhaustive as retailers are reluctant to tell the trading prices to

anyone. Similarly it is a daunting task to find out distributors of all the competitors.

Understanding Questionnaire-Competitor’s Margin:-

S.No Field Underlying Reason

1 Company

Name

Name of the company e.g. Parle Agro

2 Product About product of company e.g. Frooti

3 Pack Size Quantity of product –e.g. 200ml

4 M.R.P Maximum Retail Price

5 T.P(Trader

Price)

Price at which trader receives the product

6 T.M(Trader

Margin)

Margin of trader in terms of percentage

7 Distributor

Landing

Price at which distributor receives the product

8 Distributor

Margin

Margin of Distributor in terms of Percentage

9 Scheme Schemes offered with cases to traders/distributors e.g. 1 bottle

free with one case/additional discount in terms of percentage

59

Traders and Distributor Margins

Company

Name

Categor

y

Pack Size MRP TP TM Distributor

Landing

DM Scheme

sPI Juices 200ml

100%

22 19.1

3

15% 18.05 6.00% 5%

200ml ROR 18 15.6

5

15.0

0%

14.91 6.00% 5%

1ltr 100% 85 73.9

1

15.0

0%

69.73 6.00% 5%

1ltr ROR 75 65.2

2

15.0

0%

62.11 6.00% 5%

Company

Name

Category Pack

Size

MR

P

TP TM Distributor

Landing

DM Schemes

Parle Agro Frooti 200ml 10 8.60 14.00% 8.19 5.00% volume

based 1.2l 45 41.0

0

8.89% 39.05 5.00% volume

based 600 ml 25 22.9

0

8.40% 21.81 5.00%

2l 70 63.0

0

10.00% 60.00 5.00%

1l 36 31.6

8

12.00% 30.17 5.00% 1 peti+1

pack 400ml 20 18.0

0

10.00% 17.14 5.00%

Appy fizz 1l 50 45.0

0

10.00% 42.86 8.00%

Company

Name

Category Pack

Size

MRP TP TM Distributor

Landing

DM Scheme

sRasna Rasna 200g

m

35 32.5 10.00% 30.37 7.00%

5gm 2 1.8 10.00% 1.68 7.00%

Company

Name

Catego

ry

Pack

Size

MR

P

TP TM Distributor

Landing

DM Schemes

Coca cola CSD 300 ml 12 10.

5

12.50

%

10.09 4.00

%

24 + two 3ooml

bottles 500 ml 23 20 13.00

%

19.4 3.00

%

24 + 3 bottles of

kinley 2 L 60 54 11.00

%

51.9 4.00

%

9 + two 500 ml

bottles

60

Company

Name

Categ

ory

Pack Size MRP TP TM Distributor

Landing

DM Schemes

Pepsi

India

CSD 300 ml 12 11 8.30% 10.5 4.3

%

24 + 2

500 ml 23 21.7

5

5.40% 24+ 2

1 L 32 29.7

5

7.00%

2 L 60 56.6 5.60% 55.1 2.8

0%

9 + 2 600ml bottles

MY CAN 15 13.2 12.00

%

24 + 2 CANS

NCD SLICE

5OO ML

25 23.6 5.60% 24 + 2

SLICE

1.25 L

50 47 6.00% 12 + 1

Nimbooz

350 ml

15 13.7 8.60% 24 + 1 bottle of

Nimbooz & 1

Aquafina Nimbooz

1.25 L

50 47 6.00% 12 + 1

Company

Name

Category Pack Size MRP TP TM

MOTHER

DAIRY

Chaach 450 ml 10 9.5 5.00%

0 sweet lassi 300 ml 12 11.508 4.10% salted lassi 200 ml 7 6.706 4.20% 0 Nutrifit litchi 100 ml 11 10.505 4.50% Nutrifit ROR 100 ml 10 9.5 5.00% 0 Full cream milk 1 L 30 29.82 0.60% single toned

milk

1 L 23 22.816 0.80%

Double toned

milk

1 L 20 19.8 1.00%

Standard milk 1 L 18 17.802 1.10%

Company Name Category Pack

Size

M

R

P

TP TM Distributor

Landing

DM Schemes

61

PepsiCo Aquafina(min

eral water)

1 L 13 11.3

36

12.

80

%

3 bottles on

case

Camp Beverages

Pvt. Ltd

refreshers 500

ml

12 9.25 22

.91

%

8.75 5.40

%

One bottle

one case

1 L 30 27.5 8

%

200 9.09

%

One bottle

one case 2 L 50 48.3 3

%

43.3 10.3

0%

One bottle

one case McDowell Mineral

Water

1 L 12 5.6 53.

00

%

5 10.7

0%

Royal Crown Cola

International

RC cola 300m

l

12 9.33 22.

25

%

8.8 5.60

%

600m

l

22 13.5

4

38.

40

%

12.29 9.20

%

Parle Agro LMN 200m

l

12 9 25.

00

%

8.69 3.50

%

2 appy fizz on

30 pieces

Company

Name

Category Pack

Size

MR

P

TP TM Distributor

Landing

DM Schem

esNestle Lactogen ( Tin

packing)

500 gm 20

7

188.

37

9.00%

1000

gm

41

0

373.

1

9.00%

Westin Mineral Water 1 ltr 12 5 58.30% 4.1 18

%

Del Monte Juice 240ml 25 21.2

5

15.00% 20.18 5.00

%

Kissan Squash 700ml 95 85 10.52% Kingfisher mineral water 1 ltr 12 7.9 34.10%

62

Company

Name

Category Pack

Size

MRP TP TM Distributor

Landing

DM Sch

eme

sAmul Cool

Café(milk)

220ml 22 19.8 10.00

%

19.2 3.00% 6+1

Gopalji Milk 200ml 15 10 33.33

%

9.6 4.00%

Mapro Squash 700ml 99 97.8 1.20% 97.31 0.55% Bisleri mineral Water 20l 70 63 10.00

%

60 4.70%

5 ltr 40 35 12.50

%

33 5.70%

1 ltr 15 11.2

5

25.00

%

Coke Kinley 1 ltr 13 11.3

3

12.80

%

HEINZ Glucon D 100

gm

20 16 20.00

%

20%

extra 200

gm

37 29.6 20.00

%

20%

extra 500

gm

82 65.6 20.00

%

20%

extra 1000

gm

130 104 20.00

%

20%

extra HEINZ Orange D 100

gm

25 20 20.00

%

10%

extra 200

gm

46 36.8 20.00

%

500

gm

101 80.8 20.00

%

1000

gm

175 140 20.00

%

Mehsana

dist.

Coop.

milk

producer

union

Amul powder 500

gm

115 104.

65

9.00%

63

1000

gm

222 202.

02

9.00%

64

Company

Name

Category Pack

Size

M

RP

TP TM Distributor

Landing

DM Schemes

Surya Fruits &

Agro

Freshgold 1l 70 59.

50

15.00

%

56.67 8.75

%

8-20%

TUNIP AGRO

LIMITED

Onjus 1l 10

0

85.

00

15.00

%

80.95 12.5

0%

1+1(prom

otion)KDD Juices 1l 75 61.

50

18.00

%

58.57 7.00

%

4-10%

85 69.

70

18.00

%

66.38 7.00

%

Kraft Foods Tang pouch 4 3.5

0

12.50

%

3.33 5.00

%

500g 80 70.

00

12.50

%

66.67 5.00

%

Cloud 9 Juice 1I 75 52.

5

30.00

%

1I 85 59.

5

30.00

%

HALDIRAMS KHUS 700

ML

12

0

95.

15

26.00

%

84.95 12.0

0%

FDC ELECTROL 21.80

g

75 11 582.0

0%

10 10.0

0%

22+3

RED BULL -

normal

350ml 85 73.

91

15.50

%

68.43 5.00

%

1 case +

1 RED BULL -

sugar free

350 ml 85 73.

91

15.50

%

68.43 5.00

%

hamdard Roohafza 1I 10

5

96.

6

8.00

%

91.13 5.60

%

1-5%

Heinz Glucon D 1kg 17

5

157

.5

10.00

%

149.28 5.50

%

500gm 82 73.

8

10.00

%

69.95 5.50

%

100gm 25 22.

5

10.00

%

21.32 5.50

%

Findings of Study:-

65

Findings of Phase 1 of Project

Summarized data s for Central Delhi is as follows

Area Outlet-

Covered

Real

Only

Tropicana

Only

Both

Present

Gatorade

Present

No

Juice

South Patel

Nagar

16 7 2 2 1 5

Sadar Bazar 9 2 0 0 0 7

Jhandewalan 14 1 4 1 1 8

RajendraNagar,E

ast Patel Nagar

28 5 7 15 8 1

West Patel

Nagar

14 2 2 3 1 7

Karol Baag 30 1 9 16 3 4

CP,Paharganj,G

olmarket

33 2 15 9 3 7

Chandani Chawk 25 3 0 2 0 20

Total 169 23 39 48 17 59

Consolidated Graphical Findings –Central Delhi

66

67

Findings Consolidated –Central Delhi

Below are the consolidated findings for Central Delhi

Consolidated Graphical Findings West Delhi

Areas Covered –West Delhi

S.no Area Covered1 Ashok Nagar2 Hari Nagar3 Rajauri Garden4 Fateh Nagar5 Tilak Nagar6 Ramesh Nagar7 Uttam Nagar8 Vikaspuri+Bodella9 Asha Park

10 Janakpuri11 Moti Nagar12 Kirti Nagar

This data was collected by other team members

68

Consolidated Graphical Findings-North Delhi

Area Covered-North Delhi

This data was collected by team members.

S.No Area Covered1 Kamla Nagar2 Vijay Nagar3 Parmanad Colony4 Gujrawala Town5 Munshi Ram6 Model Town II7 Model Town III8 Model Town I9 Derawal

10 Ashok Vihar11 Deep Market12 Shalimar Baag13 AL Market14 Kohat Enclave15 Peetampura16 Mukharji Nagar17 Nirankari Colony18 Rohini,Sec 1519 Rohini ,DDA market20 Rohini,Sec 821 Rohini,Sec 722 Outram Lane23 Hakikat Nagar24 Hudson Lane25 Kingsway Camp26 Roop Nagar27 Ghanta Ghar28 Sabzi Mandi

69

29 Rohini,Sec 330 Rohini,Sec631 Rohini,Sec1132 Rohini,Sec9

Consolidated Graphical Findings-East Delhi

70

Areas Covered-East Delhi

S.No Area Covered1 Anand Vihar2 Dilshad Garden3 Karkarduma4 Nirman Vihar5 Pandav Nagar6 PatparGanj7 Madhu Vihar8 Chandar Vihar9 IP Ext10 Mayur Vihar11 Preet Vihar12 Shakar Pur13 Savita Vihar14 Seelam Pur15 Vasundhra Enclave16 Vivek Vihar17 New Kundali18 Lajpat Nagar Amar19 Sarai Julena20 Ph2 Mayur21 Sarita Vihar22 MV PH323 Shrshtha vihar24 New Ashok Nagar

Findings-Estimation Exercise

71

Finding Distributor details:-Unified

Reaching Distributor Point:-

There are 2 distributors for west Delhi. We were allocated Unified Distributor that is

hardly 1 km away from Hari Nagar Metro Station.

Diversification in Business

Other Companies Products that Distributor Have Kept:-

Infrastructure:-

Distributor possesses the following infrastructure

a) Vehicles are required for delivery of goods.

b) Computer operator is responsible for generating invoices of orders and doing other

administrative tasks relating to accounts of Distributor.

c) Minimum base quantity Storage is Rs 2 Lakh set by PepsiCo.

d) Helpers act as drivers and assist P.S.R while they go to deliver the product

72

Expenses of Distributor:-

Being a distributor in F.M.C.G industry is not a easy job. There are lots of expenses

that distributors have to keep account of .So let’s look at the major expenses of

Distributor:-

So in one month distributor spends around Rs 83500 as expenses

Dissatisfied Distributor:-

Distributor at unified is not happy with the business for the following Reasons.

1. Lack Of I.T Support from company:-Distributor also deals with products of

company like 3M and Dr.FixIT. Both of them had an online system where orders can

be taken online for delivery, discount is automatically generated while entering the

required order as well as generating bills online. Also it is clearly know that which

73

distributor is supplying which part of the state so crossing of defined regions do not

take place. Lack of such application from PepsiCo slowdowns the functioning of

distributor and causes inconvenience to him.

74

1. Replacement policy of company states that goods will be replaced when they

accumulate up to price of Rs 50000. This blocks the amount of Distributor.

2. Company is not giving credit to distributor. So when distributor buys from company

he has to take entire goods on cash .Lack of credit period clearly puts burden on him.

3. Reimbursements are very slow .Salaries of P.S.R, sampling amount, scheming

discount takes up to 4 months to clear. Distributor had blocked money of 4L still

pending to be approved for the month of March-2010.

75

Implications of the Study

Implications for Phase 1

a) Tropicana Division of PepsiCo is doing a good job in Central Delhi but there is huge

scope of improvement in terms of market Share .Clearly large chunk of sales is being

hampered due to untapped shops. Looking at the analysis done below:-

i. According to survey ,only 23 shops in Central Delhi have kept only

Real

ii.If P.S.R sells one case Tropicana 1L and one case Tropicana 200 ml

at one such store it will cost 1200INR(app)

iii.So sales from 23 such stores:-27600INR

iv.P.S.R goes to a store four times in a month for order then total sales

will be 110400INR(1.10L)

v.So in one year sale will be 1324800INR (13.24L).

b) Cross-Selling of Gatorade is not being done assiduously. P.S.R is not making

existent clients aware about Gatorade. Due to this sales is getting affected:

i. According to survey conducted Gatorade should have been present at

89 stores.

ii.If a sales man sells 3 mono carton each of both flavors of Gatorade

and 3 R.T.D (ready to drink) cost to shop keeper 550INR(app)

iii.So weekly sales from 89 shops=48861INR

iv.Monthly sales from 89 shops=195444INR(1.95 L INR)

v.Yearly sales from 89 shops=2345328(`23L INR)

c) Conversion of 35% no juice market into juice market will help company increase its

value.

i. Total 59 shops are classified as no juice market.

ii. If Tropicana can crack 40% shops(23 shops) and place goods worth

Rs 1000 over there.

iii.So weekly sales will be Rs23000

iv.Monthly sales will be Rs92000

v.Yearly sales will be Rs1104000(Rs 11 Lakh)

76

So from above calculation we can say Tropicana and Gatorade are

closing their eyes on sales of 47 Lakh yearly from Central Delhi from

current operational plans.This figure is only for the sample data

.Actual amount will post incremental growth to their business

d) P.S.R’s are not discovering newly opened outlets. This sort of shortcoming in the

Peak business season is not good for the business.

e) There is very little awareness about Tropicana in mind of customer. Most of the

consumers don’t know that Tropicana is a PepsiCo’s product and consider it an

imported product.

f) There is total lack of awareness about Gatorade. Despite being present in Indian

market for a long time most of the retailers/consumers are not aware of the product.

g) Merchandising is not up to the mark in Central Delhi .Being an impulse buy

merchandising plays an important role in selection of Tropicana by the customer.

Less share of eyeball of Customer is also affecting its sales.

h) Similarly visual merchandising for Gatorade is also very poor .

i) Due to movement constrains of merchandiser on bi-cycle his span of shops covered

is also hampers

j) Tropicana is not being sold in many institutional areas-like eating joints ,Five Star

Hotels , Gymnasium’s. So we can say Tropicana clearly needs to work on 80-20 rule.

k) Complete range of Tropicana is missing from many stores.

l) Soft Skills of P.S.R are not up to the mark.

Implication for Phase 2:-

1) Since, shop deficit and resource crunch has been identified –so there is certainly

some hidden business that will be generated Tropicana and some remuneration that

will have to be given to human resources.

2) Shop Deficit-25006.

a. If Tropicana is able to crack 40% of the above existing shops (10002 shops)

then there will be incremental growth in their business.

b. Say one case of Tropicana 100% is being placed at each of the counters then

weekly sales will be Rs 8001920(80Lakh app).

c. So monthly sales will be 32007680(3.2Crore app)

d. Thereby yearly sales will be 384092160(38 Crore app)

e. If only one mono carton of each flavor of Gatorade is kept at these new shops

weekly sales hit a amount of Rs1520304(Rs 15.2Lakh)

77

f. Similarly yearly sales will shoot to Rs18243648 (Rs 1.8 Crore).

3) According to manpower and resource estimation we need to have 138 P.S.R.

Tropicana had 19 P.S.R so we need to hire 117 human resources.

a. In hand Salary of one P.S.R Rs 9000

b. Yearly Salary of one P.S.R Rs 1053000

c. Yearly salary of one P.S.R Rs 1.08Lakh

d. Yearly salary of 117 P.S.R Rs12636000(1.26 Crore)

4) Assuming One Central executive handles 4 P.S.R so Tropicana needs to hire 30

Central executive. Hitherto Tropicana Division had 14 C.E ,So openings are for 16

C.E

5) Assuming Central Executives hired are of Level 1.

a. C.T.C of one C.E Rs 2Lakh P.A

b. Yearly salary of 16 C.E is Rs 32Lakh.

6) One Area Sales Manager handles around 4 Central Executive. So there need to be

one more A.S.M as there are already 3 Area sales Manager.

a. C.T.C of one A.S.M is around 6 Lakh P.A

7) Total Amount comes to be 16436000(Rs 1.64Crore)

Implications:-Phase 3.

1. Sampling at shops is a good way to sell your product. Client gets first hand feel about

the product and don’t forget it easily even in case if he is not buying it. Same stands

true for a new Product like Gatorade mix.

2. It is the distributor who sells the product in the market. Attrition rate of distributor is

not a good sign for the product. Same is the case for west Delhi .In past 2 years 22

distributors have changed where as in the same region Distributor of Real is selling

their products for the last 11 years .This is the biggest reason why reason why Real

sells like Hot Cake. Frequent attrition makes a parochial outlook for Tropicana and

that is why it is lacking in terms of sales.

3. So keeping distributor happy by giving him succor from companies side will reap

benefit for the customers and hence, increase value for the company.

Dabur’s Real-Edge over Tropicana

78

1. Dabur is operating in Delhi on whole sale business. Major selling is done by their super

stockiest

2. Dabur’s real have the first mover advantage in juice market whereas PepsiCo’s

Tropicana is following the catching up policy.

3. Dabur’s real has been voted super brand for three consecutive years which point out

towards “MAXIMUM SHARE OF HEART OF CUSTOMER” whereas no such user

support has been earned by Tropicana.

79

Recommendations made1. Cover all the market gaps in order to take pie of hidden business worth 47Lakh INR

according to sample size.

2. Execute plan of estimation exercise to reap benefit of 38Crore Hidden Sales for

Tropicana and Rs 1.8 Crore for Gatorade in one year.

3. Motivate workforce to discover constantly growing new shops.

4. Motivate workforce to implement cross-selling for Gatorade.

5. Tap in more and more institutes like hotels, schools, offices, gymnasiums to

implement 80-20 rule

6. Polish soft skills of P.S.R and make them more informed about the product so that

they can educate the retailers better.

7. Pull up the socks and resurrect visual merchandising to increase share of eye ball of

customer.

8. Send PSR and merchandisers to market on same vehicle .It will keep shopkeeper

satisfied as his Merchandising will be done on daily basis and sales man will not

have to hear about any issues regarding merchandising

9. Open more Shop in Shops in potential stores to increase customer base.

10. Have a retailer competition where retailer who will sell maximum juice in month will

get a prize. Record of sales can be checked from distributor. This will ensure that

store owner is motivated to sell the product to customer.

11. Invest with in quality man-power that will reap benefits for the department.

12. Work assiduously on Traditional Trade as it forms back bone of their business.

80

Benefits likely to accrue to the company:-

a) Survey shows the organization market gaps. Company can use this information to fill

the gaps, in turn generating business and hence creating value for the customer as

well as to the organization.

b) They can work on their areas /shops which act as soft spots in terms of visual

merchandising to promote Impulse Buy from customer’s side. This will also help them

to properly utilize merchandising budget sanctioned from the higher management.

c) They can give better training and motivate employees so that execution is enhanced

and retailer’s knowledge about Tropicana and Gatorade increases. This will also

push up the cross-selling of Gatorade.

d) Their customer relationship will improve by better trained sales men.

e) Company can enhance the estimated data as they have better market knowledge

and subsequently form future plans for their sales.

f) Total 624 shops were covered by entire team. If AC-Nielson charges 12Lakh only for

telling names of 60,000 shops related to juice market then, Price of knowing name of

one shop turns out to be Rs20.This is the price of only for field in the survey form. For

14 fields amount rises to RS280 which implies one row of survey form costs Rs280

so price of knowing data of 624 shops comes out to be RS174720(1.74L).So

company saved money from this survey by effective resource utilization.

g) By seeing the hidden sales of 7.99 Crore T.D.M can calibrate monthly targets of

Central executives and set new monthly growths targets for sales in Central Delhi.

h) On similar grounds he can see how many new shops an existing P.S.R has to do to

achieve the target

i) Distributor will generate more business and have to manage his day to day

operational activity.

j) By seeing the margin of all the competitors PepsiCo can train its employees in such a

way that they can enable a better negotiation as they already know at what price

customer is getting the competitors product.

k) Competitors margin will let sales man know about customer’s proclivity for

exaggeration.

l) Working on keeping distributor attrition at a minimum bay will reap fruits for western

Delhi.

81

Limitations:-It is well known fact that constraint and limitations are bound to be present in any

study do this also has some limitation as:-

1) As the project is prepared for academic purpose it suffers for the limitation of

the time and due to which an analytical study into all the strategies adopted by

the organization was not possible.

2) Lack of retailer’s interest to answer the questions is also an important

limitation.

3) Lack of knowledge of area has affected the research.

4) Retailers prevaricate sometimes and may give false and biased information

5) This report focuses on observations of one distributor only there might be

other unexplored waves in the ocean.

Proposed Implementation Methodology

82

1) Cover all the market gaps and successfully place Tropicana and Gatorade

over there.

2) Discover all the shops that are stated inside residential areas to gain access

to whole new consumer base and new business.

3) Increase work force to cater newly discovered market.

4) Make a target of discovering 15 new shops a month for P.S.R and give them

incentive if they achieve it.

5) Make a contingency plan. In case if store owner is not willing to keep

Tropicana sell him Gatorade Mono Carton and after some time when relations

become solid sell them Tropicana too.

6) Place at least one mono carton of Gatorade where 1LTropicana is present.

7) Place 1L Tropicana on all stores where 1 L real is present.

8) Give PDA to P.S.R to take orders.

9) Send P.S.R and merchandiser to cover a market on same day and ensure

their seamless conversation.

10)Fully utilize the P.O.P material so that visual merchandising attracts customer

to by the product.

11)Communicate with marketing team to introduce packs of 500ml for Tropicana.

12)Communicate with marketing team to introduce juice in smart food grade

plastic bottles.

13) Communicate with Production department to change the quality of packing

material as it inflates when water from chiller falls on it in case of electricity

breakdown. This make consumer feel that pack is spoiled.

14)H.R department should make sure that attrition rate is kept minimum for the

sales department.

15)For sales of Gatorade follow O.S.O.S -“ONE SHOP ONE SAMPLE”

principal.

16)Give credit of 15 days to distributor to ease of his burden

83

17. Send one person to take replacement at the end of month from Distributor.

18. Give I.T enabled web based application to distributor for stream lining process.

a. That application can have a module where Logins are given to

retailers, enabling them to give order online, then that request is

automatically directed to concerned distributor hence, solving the

territory issue faced by Distributors and further it will put transparency

in billing and undercutting issues.

17. Work on replacement policy-send one person for replacement in one month at

distributor point.

Suggestions regarding further scope of work

a) Areas that were missed not covered under survey due to lack of

knowledge of local market can be covered and their findings can fill

marketing gaps.

b) Process of how business is done with institutes need to be seen.

c) Effect of Tropicana/Gatorade Promotion on their sales is yet to be

explored.

d) Finding distributor landing price of beverages that cannot be found this

time.

84

e) Estimation calculated is soft on numbers especially for Gatorade. More

exposure to organizational behavior will certainly change the data.

f) In estimation exercise some facets are untouched. Work can be done

on finding number of Distributors required to accommodate newly

discovered gap. Similarly due to increased demand effect on C&F and

Factory production can be worked onto in future.

85

References and Bibliography.

1) http://www.delhigate.com/in2delhi/hotels.ht

m

2) http://delhi planning.nic.in/economic%20survey/es

%202005-06/.../15.pdf

3) http://www.jnu.ac.in/facilities/listofhospitals.

htm

4) www.pepsico.com

5) http://www.dailyfinance.com

86