Initial Report on Pepsi(Saurabh Srivastava
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Transcript of Initial Report on Pepsi(Saurabh Srivastava
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ORIGIN OF A COMPANY :-
It can be said with absolute certainty that the RKJ Group has
carved out a special niche for itself. Its services touch different
aspects of commercial and civilian domains like those of
Bottling, Food Chain and Education. Headed by Mr. R. K.
Jaipuria, the group as on today can laid claim to expertise and
leadership in the fields of education, food and beverages.
The business of the company was started in 1991 with a tie-up with Pepsi Foods
Limited to manufacture and market Pepsi brand of beverages in geographically
pre-defined territories in which brand and technical support was provided by the
Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted
at Agra Plant only.
Varun Beverages Ltd. is the flagship company of the group.
The group also became the first franchisee for Yum Restaurants
International [formerly PepsiCo Restaurants (India) Private Limited] in India. It
has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza
Hut Restaurants & 1 KFC Restaurant under its company.
It diversified into education by opening our first school in Gurgaon under
management of Delhi Public School Society. The schools of the group are run
under a Registered Trust namely Champa Devi Jaipuria Charitable Trust.
Companies are medium sized, professionally managed, unlisted and closely held
between Indian Promoters and foreign collaborators.
The group added another feather to its cap when the
prestigious PepsiCo International Bottler of the Year award
was presented to Mr. R. K. Jaipuria for the year 1998 at a
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glittering award ceremony at PepsiCos centennial year
celebrations at Hawaii, USA. The award was presented by Mr.
Donald M. Kendall, founder of PepsiCo Inc. in the presence of
Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico,
Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig
Weatherup, President of Pepsi Cola Company.
Vision
Being the best in everything we touch and handle.
Mission
Continuously excel to achieve
and maintain leadership position
in the chosen businesses; and
delight all stakeholders by
making economic values in all corporate functions.
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Their Success
Production of innovative, high quality
retail branded beverages combined with
world-class packaging.
Driven by a management
team with a relentless focus on achieving superior
customer service, driving earnings improvement and
increasing shareholder value.
Their People
At RKJ Group they are creating an
environment where our employees enjoy a
greater degree of empowerment both
individually and in their work teams.
Their employees are equipped with the
necessary tools, training and management
backup for strong performance and
accountability, as well as in an environment of
open communication and involvement.
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Different Product of PepsiCo
Pepsi
Diet Pepsi
Pepsi Aha
Slice
Mirinda7-Up
Aquafina MineralWater
TYPES OF PRODUCTS:
Non-alcoholic soft drink beverage market can be divided into fruit drinks and softdrinks. Soft drinks can be further divided into carbonated and non-carbonateddrinks. Cola, lemon and oranges are carbonated drinks while mango drinks comeunder non-carbonated category. The soft drinks market till early 1990s was inhands of domestic players like campa, thumps up, Limca etc but with opening upof economy and coming of MNC players Pepsi and Coke the market has cometotally under their control. While worldwide Coke is the leader in carbonateddrinks market in India it is Pepsi which scores over Coke but this difference is fastdecreasing (courtesy huge ad-spending by both the players). Pepsi entered Indian
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market in 1991 coke re-entered (After they were thrown out in 1977, by the thencentral government) in 1993.
Carbonated soft drinks major Pepsi India is now putting together a cocktail totake a bigger slice of the fruit juice market. Close on the heels of the launch of its
global lemon drink Twist in an Indian avatar as Pepsi Aha, Pepsi, once again, is allset to roll out another global productin a localized version. Come June 2002, andPepsi will roll out the blends of its international fruit drink Twister in the country,albeit, with a difference. In India, Twister blends will be launched as mixed fruitcocktails under Pepsis existing juice brand Slice. Pepsi spokesperson, whencontacted, confirmed the launch but said the products will be launched on anexperimental basis for three to four months beginning June 2002. However,confirmed sources said that the product has been test-launched and is ready for aformal launch in June. Globally, the proposed Slice fruit blends exist under Twister
brand and are available in over 10 flavors and in various packaging options.
However, in India, while the blends will be decided as per local tastes and as perthe availability of fruit pulp, packaging will be restricted to cartons only. Amongthe four to five flavors planned, strawberry-peach and kiwi-guava are some ofthem. However, the new product could be priced a little higher than Slice sinceTwisteroriginallyis believed to have more than 15 per cent juice content.Slice, on the other hand, is a 15 per cent juice drink positioned at the mass-end;against the 100 per cent fruit juice Tropicana, which is at the top-end. Pepsisdecision to launch Twister flavors as Slice variants rather than the original branditself follows the companys decision to make Slice the mother juice brand in
India.
The company had at one time contemplated bringing Twister in its original self toIndia but the plan was later shelved. Internally we have been debating whether togo ahead with Twister or keep Slice as a mother brand for juices, the Pepsispokesperson said. The move, point out industry observers, is clearly aimed atsaving costs of launching an altogether new brand and instead cash in on the
potential of a existing juice brand. A Rs 200-crore brand, Slice was originallylaunched as a mango drink in returnable glass bottles. Last year, in fact, Pepsilaunched a new advertising campaign to rejuvenate the brands mango positioning.
And early this year, it was launched in cartons and more recentlythree newflavorsorange, leechi and guavawere added to the brand.
Burdened by high cost of production of returnable glass bottles, Pepsi India hasdecided to look at the most sought after packaging alternativeflexible packaging
more seriously. The company through one of its prime bottler Mr. Ravi Jaipuriaof Varun Beverages Ltd is now setting up a new carton line (tetrapack) at its
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existing bottling plant at Noida in Uttar Pradesh.
The plant with a capacity of 5,000 to 7,000 cases per day will be used to packPepsis juice drink Slice and its new variants in 200-ml cartons. The product iscurrently being packaged at Varun Beverages at Boranada Road Jodhpur.The
Noida slim line carton plantwhich is expected to take off shortlywill cater tothe north market and will help the company cut huge transportation costs.
COMPANY PROFILE :-
Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone
a radical change. When Pepsi entered parley was the leader with Thumps UP
being its flagship brand. Other product offerings by parley included Limca & Gold
Spot. Another upcoming player in the market was the erstwhile bottle of Coca-
Cola, Pure Drinks. Its offerings included Campa Cola, Camps Lemon and Campa
Orange.
With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for
more aggressive marketing to sustain its market share. The chronology the initial
phase of the Coal Wars in India was
July 1986
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An application for soft drinks-cum-snack food joint venture
by Pepsi, Voltas and Punjab Agro is submitted to the government
after an earlier proposed alliance- 1985, between Pepsi and
Duncans of the Goenkas fails to take off.
Sept.1988
Final approval for the Pepsi Foods Limited (P.F.L) project
granted by the Cabinet Committee on Economic Affairs of the
Rajeev Gandhi Government.
March 1990
Pepsi Cola and Seven up Launched in limited market in North India.
May 1990
The government clears the Pepsi project again but with a change in brand
name to Lehar Pepsi. Simultaneously it rejects the Coca-Cola application. Citra
form the Parle stable hits the market.
Dec 1991
Pepsi extends its soft drinks reach on national scale. Products launched
Delhi and Bombay.
Jan 1992
Brito Foods application cleared by the FTPB. Pepsi and Parle
start initial negotiations for strategic alliance but talks break off
after a while.
1993
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Pepsi launches Teem and Slice. Captures about 25.30% of
the soft drinks market in about two years.
July 1993
Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to 92%
Reports of coke Parle negotiations gain strength.
1994
Pepsi brought Dukes& Sons
1995
Pepsi launched Cans having capacity of 330 ml in various
flavors.
1997
Pepsi brought Mirinda Orange opposite to Fanta.
1998
Pepsi launched Lemon Mirinda to give taught competition to
Limca.
1999
Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet
battles for health conscious people.
1997
Refusing to dilute its equity state Coca-Coal winds up operations in the
country. Parle launches Thumps Up and Drinks launches Campa Cola.
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2001
Pepsi launched Aquafina.
2003
Pepsi launched Mountain Dew
2005
Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.
2006
Bubbly Pepsi was launched.
2007
Pepsi Gold was launched.
Company vision
To become truly global company, by continuing to build a
competitive and profitable worldwide refreshment beverage
business.
OBJECTIVES OF VARUN BEVERAGES:-
To observe the implementation and working of sales club
programme at different sections in Noida.
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To monitor whether it is successfully implemented in the
market.
To monitor the customer awareness about the sales club
programme whether they are fully aware about the
programme or not.
To check out that all the required materials for sales club
programmed are given to customer/ retailer or not.
To find out the effect on increasing the sales b/z of sales club
programmed at partial shop.
To monitor the purity of vis-cooler at sales club account.To monitor the purity of sack at sales club account.
To monitor whether updates in the programmed book is clan
in time or not.
To make the books available to the customers.
PRODUCT PORTFOLIO :-
Refreshment beverages
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Sports drinks
100% natural fruit juices and juice based drinks
Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up
Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports
drinks - Gatorade, and 100% natural fruit juices and juice based drinks Tropicana, Tropicana
Twister and Slice. Our local brands Lehar Evervess Soda, Dukes Lemonade and Mangola
complete our diverse spectrum of brand
PepsiCos snack food company
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PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market andwas amongst the first companies to eliminate the use of trans fats and MSG in its products. Itmanufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditionalnamkeen snacks under the Kurkure and Lehar brands. The companys high fiber breakfast cereal,Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the choicesavailable to the growing health and wellness needs of our consumers. Frito Lays core products,Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reducesaturated fats and all of its products contain voluntary nutritional labeling on their packets.
PRODUCT BOTTLEFILLING
PEPSI 300ml, 200ml
MIRINDA ORANGE 300ml, 200ml
MIRINDA LEMON 300ml, 200ml
SLICE 250ml
7-UP 300ml, 200ml
EVERVESS SODA 300ml
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MOUNTAIN DEW 300ml, 200ml
Plant is producing 10 million cases every year.
Plant has employed about 200 employees with separate companyuniform on permanent and causal basis. There are 40 managers/
officers/ supervisors and rest of workmen. Plant is dispatching
near about 125-150 tracks in peak seasons per day to various
location. This Plant spreads over 75 acres.
DISTRIBUTION NET WORK:-
SALES FO RCE:- There is a dedicated sales force at every C&F
and Distributor point. Every Salesman is assigned a specific
route that he has to cover every day. The Salesman has to take
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care of all the Shops on the designated route and address and
inform (to the Sr. CE / CE) about any issue any retailer has on
the route. The Salesmen are also assigned the task of providing
all the information to the retailers regarding the daily schemes
and the details of all the promotion schemes launched from time
to time. These include informing the retailer about the
promotional scheme, registration for the scheme, terms and
conditions of the scheme etc. The Salesman is also assigned the
task of registering maximum possible outlets on his assigned
route.
Pricing Strategies :-
List Price: The Price of each product is fixed and there is no
discrepancy. Salesmen are not authorized to make any change,
alteration or give discounts unless authorized by the Company.
Discounts: Discounts are provided to Wholesalers and Slums
but there is no discount for retailers. The discounts are
negotiated directly with the Company and the C&F or the
Distributor point is not involved in the price negotiation.
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Allowances: Allowances are given to salesmen on achieving
their daily targets. This target is given to every Salesman
everyday before he goes on his designated route. The Depot In
charge (Sr. C E / C E) gives the target to every salesman in
consultation with the TDM.
Payment period and Credit terms:No credit is provided. The
payment procedure is not flexible as the retailers are required to
make on the spot payments. At times, they defer the paymentand in that case, the Salesman either shows a shortage or pays
the rest of the amount by himself. The wholesalers are also
required to make in advance but at times they also defer the
payment and make the payment at a later date.
Products Price List
Aquafina(1ltr) 14/-
Pepsi(300ml,600ml,
2ltr
12/-,25/-,55/-
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Dew(300ml,600ml,2ltr) 12/-,25/-,55/-
Mirinda(300ml,600ml,2ltr) 12/-,25/-,55/-
Slice(250ml,500ml,1ltr) 13/-,26/-,50/-Cans(pepsi,dew,slice,mirinda
)
30/-
Promotion Strategies :-
Sales Promotion: This is the most frequently used form of
promotion which is used to increase the sale of the selectedproduct. These promotions are used from time to time depending
upon the sale of the products. If the sale of any particular
product declines or shows a declining trend then a suitable Sales
Promotion Campaign is launched to increase the sale of that
product.
Advertising: Advertising is done by PepsiCo. COBO
(Company owned Bottling Operations) and FOBO (Franchisee
owned Bottling Operations) have no say in the advertising
campaigns and their planning. The advertising account of Pepsi
is handled by JWT (J Walter Thomson) in association with theCorporate office of PepsiCo India.
Sales Force: There is a dedicated sales force at every C&F and
Distributor point. Every Salesman is assigned a specific route
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that he has to cover every day. The Salesman has to take care of
all the Shops on the designated route and address and inform (to
the Sr. CE / CE) about any issue any retailer has on the route.
The Salesmen are also assigned the task of providing all the
information to the retailers regarding the daily schemes and the
details of all the promotion schemes launched from time to time.
These include informing the retailer about the promotional
scheme, registration for the scheme, terms and conditions of the
scheme etc. The Salesman is also assigned the task of registering
maximum possible outlets on his assigned route.
Market share :-
Competition:-
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Market structure:-
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RETAILERCUSTOMERCUSTOMER
Initially the focus of the Company remains on reaching all the markets and then the Company
shifts its focus on increasing the frequency of sales in the respective markets so that the sales and
profitability of the Company can be increased.
COMPANYCOBOFOBOWAREHOUS
E
C & FDISTRIBUTO
R
WHOLESALE
R
SLUMSRETAILERSALESME
N
SALESME
N
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Company (PepsiCo): PepsiCo India provides the salt to all the bottling plants in the Country that
carry out the bottling operations.z
COBO: These are Company owned bottling operations operating directly under the Company.
Out of 32 bottling plants, PepsiCo owns 15.
FOBO: These are Franchise owned bottling operations. R K Jaipuria group does all the
franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling plants for
Pepsi.
Warehouses: These are Company or franchisee owned warehouses spread over various
locations that cover the respective territories and come under the purview of their respective
Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from
where they are sent to the C & F centers and Distributor Points.
C & F Centers: These are the biggest centers in the distribution network and receive proper
assistance from the Company (either COBO or FOBO). The C & F center is owned by a private
player and not by the Company. The vehicles (Delivery Vans) are owned by the Company, and
the Salesmen at the C & F points are on the Company Payroll.
Distributors: These are small, compared to C & F centers. Everything at the Distributor point
owned and managed by the distributor, even the salespersons are on the Distributors payroll.
Wholesalers: These are smaller than C & F centers and Distributor points and get the stock
directly from the Company or Franchisee. They get their stock directly from the Company and
thus get special rates and extra discounts from the Company.
Slums: They are generally smaller than the Wholesalers are. However, they get special
discounts from the C & F centers and Distributor points.
All the different players in the distribution channel namely C & F centers, Distributor points,
Wholesalers and Slums have different designated markets and are not supposed to operate in the
market designated to any other player.
Retailer: Retailers are the most important chain in the distribution channel of Pepsi as they are
the only point of contact with the customers. Retailers get their stock from all the other channel
members in the distribution channel.
ORGANISATIONAL STRUCTURE:-
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ABOUT THE CUSTOMERS:-
As my company guide given me the topic of promotional merchandising I had covered several
shops and I understand this concept equally well by covering almost 20 shops in 15 days. These
are as follows:
Retail shops
Food Marts
Shopping Malls
Bakery Shops
Food Court
SEGMENTATION:-
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GEOGRAPHIC:-
REGION (URBAN AND RURAL AREAS) [INDIA]
CLIMATE (HOT AND DRY)
TARGET AREA Domestic users, Restaurants, Bars, School and College canteens.
DEMOGRAPHIC:-
Age 14 to 30
Gender Male and Female
Family size no bar
Family lifecycle unmarried, married ,Income 5000+
Psychographic:-
Social class Middle Class and Upper Class
Pepsi attempts to capture the youth of today by focusing on their personality, lifestyle and
attitude of youth through advertisement
Behavioral:-
Occasions Parties, Birthdays, Sports and regular occasions
Benefits Quality and taste
Loyalty status Strong
Readiness stage Aware, Interested
PRODUCT POSITIONING :-
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Pepsi prefers to position itself as the beverage choice of the New
Generation, Generation Next, or just as the Pepsi Generation.
These terms adopted in Pepsis advertising campaigns are referring to the
markets that marketers refer to as Generation X. The Generation X consumer is
profiled to be between the ages of 18 to 29. They have high expectations in life and
are very mobile and
active. They adopt a lifestyle of living for today and not worrying about long-term
goals. Though Pepsis main emphasis ison this segment but they also have a focus
on the 12 to 18 year old market.
The rich deep blue coloring represents eternal youthfulness and openness.
Marketing plans like Yeh Dil Maange More, Got Another Pepsi, Ye Pyass
Hai Badi have made Pepsi one of the coolest brands recognized among teens in
the top five and the only beverage product in this category.
BUYING PATTERN OF CONSU MERS:-
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This statistics and charts are totally depend on the market survey to find the
consumer behavior and their buying pattern. This questionnaire is as follows:-
MARKET RESEARCH
QUESTIONARES
PERSONAL DETAILS :-
NAME:- __________________________
1. AGE
A) 17-20B) 21-24
C) 25-28
D) 29 and Above
1. GENDER
(A)Male
(B)Female
1. EDUCATION
(A)High school
(B)Under graduate
(C)Graduate
(D)Post Graduate
(E) Others
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MARKET SURVEY :-
1. Which brand of soft drinks do you mostly prefer?
(A)Coca Cola
(B)Pepsi co
(C)Parle
1. Whom so you buy soft drinks for? (Tick one)
(A)Family
(B)Children(C) Institutional purposes/ Social occasions
1. How often do you have a softdrink?
(A)1-3 times a week
(B)4-6 times a week
(C)More than 6 times a week
(D)Rarely
1. What quantity do you usually prefer to buy?
(A)200-250ml
(B)300ml
(C)500ml bottle
(D)1-2ltr
1. Through which medium did you come to know about your preferred soft
drink brand?
(A)Hoardings & Banners(B) Newspapers & Magazines
(C)T.V./ Radio
(D)Word of mouth
(E) Others
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1. Which is the most preferred channel for purchasing a soft drinks?
(A) Retail/ Grocery Store
(B) Supermarket/ Hypermarket
(C)Cineplex
(D)Pan Shops
(E) Restaurants(F) Others
1. Do the following reasons influence your consumption of soft drinks?
FACTORS VERY LESS
IMPORTANT
LESS
IMPORTANT
NO
INFLUENCE
IMPORTANT VERY
IMPORTANT
FLAVOUR
NO OF FLAVOURS
AVALIABILITY &
CONVINIENCE
PRICE
CLEANLINESS OF
BOTTLES/ NOT
DAMAGEDMANUFACTORING
DATE/
EXPIRY DATEFREQUENCY OF
ADVERTISEMENT
BRAND
AMBASSADORBRAND VALUE/
BRAND NAMECALORIE CONTENT
PROMOTION
SCHEMES/
DISCOUNTS
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VISUAL APPEAL OF
PACKAGING
INGRIDIENTS
2. Which is the most important characteristic for choosing the channel?
(A)Pricing
(B)Ambience
(C)Location/Nearness
(D)Service
(E) Display/Merchandising
(F) Reputation
(G)Occasion
(H)Others
1. Are you satisfied with the price of your soft drinks?
(A)Yes
(B) No
SWOT ANALYSIS :-
STRENGTH:
1) Good market penetration.
2) Motivated channel partner.
3) Well defined routes.
WEAKNESS:
1) All flavour were not available in at least 80% shops.
2) Complaint handling was not up to mark.
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3) Supply in certain area is very irregular and also route agents are not covering
full routes.
4) Poor signage and display is making the routes week for the sale of Pepsi.
5) Interpersonal relationship with the company officials and the route agent is
not satisfactory.
OPPORTUNITY:
It is observed that in some newly establishing areas many new outlets are
opening , Pepsi needs to concentrate on these new outlets and can gradually
increase its sale in these area.
Large number of mix outlets can be changed to Pepsi exclusive and coke
exclusive to mix only by luring them good and efficient supply, glow sign and
cooling equipments.
THREATS:-
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NGOs NGOs like CSE can seriously hamper the sales and prospects of companies
operating in this industry. This happened during the pesticide controversy involving
both coke and Pepsi.
HEALTH Growing health awareness among people and some of ill effects of
carbonated beverages have pursued many people to switch over to non-carbonated
beverages that can seriously hamper the long-term prospects of the entire Industry
and not Pepsi.
ENVIRONMENT Environmental concerns are often raised because of the massive
amount of water extracted by the bottling plants resulting in the drop in
groundwater level which affects the local population adversely.
RECOMMENDATION:-
This is one of the most important and most difficult part of the study. I arrived at
certain recommendations for PepsiCo India(Trans-Yamuna and Agra markets) after
the analysis of the data. Some of the important recommendations are as follows
There should be and correct feedback from the retailers on the performance
of salesmen. This will help improve their efficiency and accountability.
Moreover, this will also help in reducing the confusing that the retailers have
at times because the salesmen does not explain the schemes properly.
As already mentioned Vizicoolers are a major reason of dissatisfaction among
retailers. The periodical maintenance check of Vizicoolers is done at threemonths. This should be done at an interval of 45 days or 60 days instead of
the current practice of 90 days
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A complete survey of the every territory should be done for standys, banners
logo racks etc. and then a proper budget and plan should be made for their
availability at the required places, instead of doing it in bits and pieces as the
current practice is this will help with promotion at every retailer level
There should be incentives for salesmen for every display they enroll because
they are assigned this task and if they get incentives for the same then it will
greatly increase the efficiency of the promotional activities.
Pepsi should also introduce a version of Diet Pepsi Cola as a sports drink
range this is a completely new and untapped market which will help in
providing the impetus for Diet Pepsi
Pepsi should start more aggressive marketing of its Diet Pepsi range of
products as they have very good growth and future prospects while there is
not much growth in the carbonated beverages sector.
WHO AND WHO`S
DEPARTMENTAL HEAD OF THE COMPANY- MR Deepak Bhalla
CEO OF THE COMPANY- MR Ravi Kant Jaipuria
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