PURPOSE OF STUDY

According to PepsiCo, "Performance with Purpose" means delivering sustainable growth by investing in a healthier future for people and our planet.

As a global food and beverage company with brands that stand for quality and are respected household names—Pepsi-Cola, Lay's, Quaker Oats, Tropicana and Gatorade, to name a few—we will continue to build a portfolio of enjoyable and wholesome foods and beverages; find innovative ways to reduce the use of energy, water and packaging; and provide a great workplace for our associates. Additionally, we will respect, support and invest in the local communities where we operate by hiring local people, creating products designed for local tastes and partnering with local farmers, governments and community groups. Because a healthier future for all people and our planet means a more successful future for PepsiCo.

OBJECTIVE OF STUDY

To know what are the various products in which PepsiCo deals.

To know about the pricing policy of Pepsi with respect to its competitors.

To find out the best promotional tool preferred by the PepsiCo.

To know the sales promotion activities of PepsiCo.

To analyze the strength & weakness of PepsiCo.

To know the distribution channel of PepsiCo India limited.

Scope of study

Scope of study on PepsiCo India Ltd, the area of the study is CTC. In the duration of study and project period, I observed that the market response of PepsiCo Product is in good position, but sales volume is not at par. The Sales promotion policy of the company is affected due to competitor’s Marketing strategy

CHAPTER- 2 History of pepsi co.

Caleb Bradham was Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.

The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola.

Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage.

In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte

and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.

Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year.

Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race."

The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business sense."

Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the slogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I, and the cost of doing business increased drastically. Sugar prices see sawed between record highs and disastrous lows, and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted. By 1921, only two plants remained open. It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's soda fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand.

One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually administered from a Baltimore building apparently owned by Coca-Cola, and named for its president. Within two years, Pepsi would earn $1 million for its new owner. With the resurgence came new confidence, a rarity in those days because the nation was in the early stages of a severe economic decline that came to be known as the Great Depression.             

 1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's Drink," a carbonated soft drink he created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts. It is first used on August 28.

1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.

1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as "Exhilarating, invigorating, aids digestion."

1905 A new logo appears, the first change from the original created in 1898.

1906 The logo is redesigned and a new slogan added: "The original pure food drink." The trademark is registered in Canada.

1907 The Pepsi trademark is registered in Mexico.

1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser when he appears in newspaper ads describing Pepsi-Cola as "A bully drink...refreshing, invigorating, a fine bracer before a race." The theme "Delicious and Healthful" appears, and will be used intermittently over the next two decades.

1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."

1932 The trademark is registered in Argentina.

1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its competitors for six ounces.

1938 The trademark is registered in the Soviet Union.

1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase consumer awareness of Pepsi's value advantage.

1940 Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Nickel, Nickel" will eventually become a hit record and will be translated into 55 languages. A new, more modern logo is adopted.

1941 In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record messages for armed services personnel overseas.

1943 The "Twice as Much" advertising strategy expands to include the theme, "Bigger Drink, Better Taste."

1949 "Why take less when Pepsi's best?" is added to "Twice as Much" advertising.

1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink economics force Pepsi to raise prices to competitive levels. The logo is again updated.

1953 Americans become more weight conscious, and a new strategy based on Pepsi's lower caloric content is implemented with "The Light Refreshment" campaign.

1954 "The Light Refreshment" evolves to incorporate "Refreshing Without Filling."

1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided bottle.

1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon meet in the soon-to-be-famous "kitchen debate" at an international trade fair. The meeting, over Pepsi, is photo-captioned in the U.S. as "Khrushchev Gets Sociable."

1961 Pepsi further refines its target audience, recognizing the increasing importance of the younger, post-war generation. "Now it's Pepsi, for Those who think Young" defines youth as a state of mind as much as a chronological age, maintaining the brand's appeal to all market segments.

1963 In one of the most significant demographic events in commercial history, the post-war baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers' lifestyles and attitudes.

1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1966 Diet Pepsi's first independent campaign, "Girlwatchers," focuses on the cosmetic benefits of the low-calorie cola. The "Girlwatchers" musical theme becomes a Top 40 hit. Advertising for another new product, Mountain Dew, a regional brand acquired in 1964, airs for the first time, built around the instantly recognizable tag line, "Ya-Hoo, Mountain Dew!"

1967 When research indicates that consumers place a premium on Pepsi's superior taste when chilled, "Taste that beats the others cold. Pepsi pours it on" emphasizes Pepsi's product superiority. The campaign, while product-oriented, adheres closely to the energetic, youthful, lifestyle imagery established in the initial Pepsi Generation campaign.1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with "Live/Give," a new awareness and a reflection of contemporary events and mood become integral parts of the advertising's texture.1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feelin' Free" captures the mood of a nation involved in massive social and political change. It pictures us the way we are-one people, but many personalities.1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers that Pepsi's taste is superior.1976 "Have a

Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even smaller dogs, becomes an instant commercial classic.1979 With the end of the '70s comes the end of a national malaise. Patriotism has been restored by an exuberant celebration of the U.S. bicentennial, and Americans are looking to the future with renewed optimism. "Catch that Pepsi Spirit!" catches the mood and the Pepsi Generation carries it forward into the '80s.

1982 With all the evidence showing that Pepsi's taste is superior, the only question remaining is how to add that message to Pepsi Generation advertising. The answer? "Pepsi's got your Taste for Life!," a triumphant celebration of great times and great taste.

1983 The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won. The time is right and so is their soft drink. It's got to be "Pepsi Now!"

1984 A new generation has emerged-in the United States, around the world and in Pepsi advertising, too. "Pepsi. The Choice of a New Generation" announces the change, and the most popular entertainer of the time, Michael Jackson, stars in the first two commercials of the new campaign. The two spots quickly become "the most eagerly awaited advertising of all time."

1985 Lionel Richie leads a star-studded parade into "New Generation" advertising followed by pop music icons Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan Marino are part of it, as are film and television stars Teri Garr and Billy Crystal. Geraldine Ferraro, the first woman nominated to be vice president of the U.S., stars in a Diet Pepsi spot. And the irrepressible Michael J. Fox brings a special talent, style and spirit to a series of Pepsi and Diet Pepsi commercials, including a classic, "Apartment 10G."

1987 After an absence of 27 years, Pepsi returns to Times Square, New York, with a spectacular 850-square foot electronic display billboard declaring Pepsi to be "America's Choice."

1988 Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic" commercial named "Chase." "Chase" airs during the Grammy Awards program and is immediately hailed by the media as "the most-watched commercial in advertising history."

1989 "The Choice of a New Generation" theme expands to categorize Pepsi users as "A Generation Ahead!"

1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right one baby."

1991 "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a campaign soon to become the most popular advertising in America is on its way. Supermodel

Cindy Crawford stars in an award-winning commercial made to introduce Pepsi's updated logo and package graphics.

1992 Celebrities join consumers, declaring that they "Gotta Have It." The interim campaign supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s. Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew whose claim to fame is that, except for the unique great taste of Dew, they've "Been there, Done that, Tried that."

1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated as best in U.S.

1994 New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weatherup explaining the relationship between freshness and superior taste to consumers.

1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship.

COMPANY PROFILE OF PEPSI CO.

PepsiCo is a world leader in convenient snacks, foods, and beverages, with revenues of $60 billion and over 285,000 employees. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service and vending.

PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with the Quaker Oats Company, including Gatorade, in 2001.

PepsiCo 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.$700 million since the company was established in the country. PepsiCo  provides direct employment to 4,000 people and indirect employment to 60,000 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.

Brands

Our products can be found in nearly 200 countries around the globe. PepsiCo is a global food and beverage leader with a diverse product portfolio that includes 22 brands that each generates more than $1 billion each in annual retail sales. Take a closer look at the brands and products that make up the PepsiCo portfolio.

OVERVIEW

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25 billion and over 142,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

SHAREHOLDERS

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

CORPORATE CITIZENSHIP

PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive – ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program.

Corporate giving is focused on giving where PepsiCo employees volunteer.

PEPSICO HEADQUARTERS

PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The PepsiCo Corporate Overview gardens were originally designed by the world famous garden planner, Russell Page, and have been extended by François Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.

Frito-Lay

PepsiCo's snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product – a corn chip – and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc.

Today, Frito-Lay brands account more than half of the U.S. snack chip industry. PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retail snack chip sales. Products are available in some 120 countries. Frito-Lay North America includes Canada and the United States. Major Frito-Lay International markets include Australia, Brazil, Mexico, the Netherlands, South Africa, the United Kingdom and Spain. Often Frito-Lay products are known by local names. These names include Matutano in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil, Walkers in the United Kingdom and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers.

marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

GATORADE & TROPICANA

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. The company entered the concentrate orange juice business in 1949, registering Tropicana as a trademark. 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. In 1957 the name of the company was changed to Tropicana Products, headquartered in Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998.Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure Premium, Tropicana Season’s Best, Dole Juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Frui'Vita, Loóza and Copella. Tropicana Pure Premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports 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 sport's drink.

QUAKER FOODS

The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figures of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the

hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856.Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemina Mills Company in 1926,

which is today the leading manufacturer of pancake mixes and syrup. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001. Its products still have the eminence of wholesome, good-for you food, as envisioned by the company over a century .

SWOT Analysis of PepsiCo.

Strength of Pepsi co in India1. Its brand.2. Huge market coverage, company existence not only in urban area but also in the rural area.3. Large number of product line to satisfy consumer.4. Verity of scheme for the retailer throughout the year. 5. Company also gives time to time schemes for the consumer.6. PepsiCo India’s Agri-Partnerships with farmers help farmers across the country earn more. 7. Good CSR Image

Weakness of Pepsi co in India

1. In distribution channel “distributor” is the additional person which is not responsible for the company because there is no direct link between company and the retailer.2. Sales person also not feel that they are working for company, they think only for the distributor.3. “Pepsi” the brand is not appreciated by the BBSR consumer, which is mother product.

OPPORTUNITY OF PEPSICO INDIA1. Pepsi could develop new products or product designing of Pepsi Brand for the BBSR market2. Competitors have poor products such as Fanta, limca.3. End-users respond to new ideas, such as launch other flavor of slice.

Threats of Pepsi co in India1. Market demand very seasonal.2. Retention of key staff is critical.3. Retailer distract from core business, such as retailer demanded to keep slice only and not for pepsi.

4. Legislation could impact; mean local taxation policy and business policy of state& central government.

Promotion /Sales techniques

The sale can be made through:i. Direct Sales, involving person to person contact a. Buying Facilitation Methodii. Pro-forma salesiii. Agency-based a) Sales agents (real estate, manufacturing)  b) Sales Outsourcing through direct branded representation c) Transaction sales d) Consultative sales e) Complex sales f) Consignment g) Telemarketing or telesales h) Retail or consumer iv. Door-to-door or traveling salesmanv. Request for Proposal is an invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service. An RFP is usually part of a complex sales process, also known as enterprise sales.vi. Business-to-business — Business-to-business sales are much more relationship based owing to the lack of emotional attachment to the products in question. Industrial/Professional Sales is selling from one business to another vii. Pharmaceuticals SalesViii. Electronic Web Business-to-business and business-to consumer.

Promotion

It involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. (The other three elements are product management, pricing, and distribution.) Promotion is generally sub-divided into two parts:I. Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet and Mobile Phones)in which the advertiser pays an advertising agency to place the ad.Ii. below the line promotion:

All other promotion. Much of this is intended to be subtle enough that the consumer is unaware that promotion is taking place. E.g. sponsorship, product placement,endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. An example of a fully integrated, long-term, large-scale promotion are and Pepsi Stuff.

Objectives of sales promotion1. Simulating business user or household for demand products

2. Improving the market performance of middle men and sales people.

3. To attract new customer.

4. To increase impulse selling.

5. To encourage greater use by existing customers.

6. Superior Merchandizing.

7. Increase stocks & sales push.

8. Better product knowledge (as a spin off).

9. Better shelf-space at retail stores.

10. Immediate results.

11. Improvement Dealer response in future.

12. To supports the advertising program.

13. To support the sales team drive.

14. To support the sales channels - trade.

15. To accelerate the sales

16. To drive the people traffic to the point of sales.

17. To stimulate the people to make the buying decision.

18. To influence the people to choose a particular brand.

19. To help the retail to move the merchandise

20. To help to liquidate the stocks.

21. To help to overcome the competition.

22. To help to gain the market share