Market Share of Pepsi

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SUMMER TRAINING

PROJECT REPORT

ON

DISTRIBUTION STRATEGY AND MARKET SHARE OF

PEPSI

LUMBINI BEVERAGES PVT. LTD

PEPSI

MASTER OF BUSINESS ADMINISTRATION

Submitted By :

Mr. RAJENDRA PRASAD

Under The Guidance

MANISH SINGH


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TABLE OF CONTENTS

1. INTRODUCTION :-

2. . COMPANY PROFILE-IN U.S. COMPANY PROFILE-IN INDIA

BUSINESS SEGMENT

BEVERAGE INDUSTRY

FOOD INDUSTRY

ADVERTISEMENT AND ADD CONCEPT

2. DISTRIBUTION NETWORK

NETWORK DESIGN

DISTRIBUTION STRATEGIES

DISTRIBUTION CHANNELS

3. OBJECTIVE OF THE STUDY

4. RESARCH METHODOLOGY

5. DATA ANALYSIS

MARKET FINDINGS

ROUTEWISE

QUESTIONNAIREWISE

6. SWOT ANALYSIS

7. CONCLUSION

8. LIMITATIONS

9. RECOMMENDATIONS/SUGGESTIONS

10. BIBLIOGRAPHY

11. ANNEXURE QUESTIONNAIRE


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EVERY DEALER SURVEY (EDS)

LOGO OF THE PEPSI BRAND


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EXECUTIVE SUMMARY

Analyzing the Distribution Strategy of PEPSI in PATNA

Channels of distribution are an important aspect of marketing strategy.Channels chosen for the companys products effect every other marketingdecision.

On 19th JULY I start my project under the guidance of Mr. MANISHSINGH (S.O.)PATNA. I have been allocated the area for survey inKANKARBAGH(PATNA).

Number of Retailers Covered:- 640

Market Area Of KANKARBAGH :-1.ASHOK NAGAR

2.HANUMAN NAGAR

3.PROFESSER COLONY

4.BHOTHNATH ROAD

5.PROFESSER COLONY

6.DOCTORS COLONY

7.RAJENDRA NAGAR

8.CHANWARI ROAD

9.KANTI FACTORY ROAD


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ACKNOWLEDGEMENT

I express our thanks to Lumbini Beverages Pvt. Ltd for granting me thepermission to work with the esteem organization. I am also thankful toMr. Manish Singh(S.O.), Lumbini Beverage Pvt. Ltd. who guided andhelped us in all possible ways they could, at every stage of the project.

My humble thanks are due to all our professors for guiding me during thetwo months training as my training mentor.

I would also like to thank all the Executives, distributors & staff ofKankarbagh area who provided us all the relevant information and theirkind support, on the basis of which this report has been prepared.

Lastly I would like to pay our special regards to my parents for theirencouragement and full support for completion of this project work.

RAJENDRA PRASAD


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INTRODUCTION

Modern age is full of competition. Today only way of success is yourcontinuous efforts towards the growing market needs and in satisfyingthem. It is the marketer job to know what the market speaks i.e. the everchanging needs of the customer through market research & adopt themfruitfully. It is must for all the companies to make policies according tothe customers and the govt. Today to succeed for any organization has totarget its customer needs, to create a culture in the organization i.e.market conscious & responsive to customer needs.

Soft drinks industry has become big business in India in recent years.

The soft drink business under went major change with the entry of PEPSIand re-entry of COCA-COLA in India in the late 80s when Parley with

brands like Thumsup, Limca & Gold spot was a clear leader. Coca-Colatook up the product line of parley in 1993-94; today both brands are theIndians favorite soft drinks


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COMPANY PROFILE-PEPSI CO. (US)

PepsiCo is a world leader in convenient foods and beverages, with

revenues of about $27 billion and over 143,000 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.

Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi

(1964) and Mountain Dew (Introduced by Tip Corporation in 1948).

Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in

1932), Lay's brand potato chips (created by Herman W. Lay in 1938),

Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips

(1958) and Rolled Gold brand pretzels (acquired 1961)


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Pepsi co is the world leader in the food chain business. It consists of

many companies amongst which the prominent one is Pepsi cola, frito

lay, Pepsi food international, pizza hut, and KFC and taco bell. The group

is presently into three most profitable businesses namely, beverages,

snack foods and restaurants. It has scores of big brand available in nearly

150 countries across the globe.

The beverages segment primarily market Pepsi diet, mountain dew and

other brands worldwide and 7UP outside the U.S. market. They are

positioned in close competition with Coca-Cola inc. of USA. A point to

be noted is that coca cola get 80% of its profit from international

operation while same figure of Pepsi co. stand at 6%, the segment is also

in the bottling plants and distribution facilities.The restaurant segment

primarily consists of the operations of the worldwide pizza hut, Taco

Bell and KFC. Long time no.2 player in the cola wars, Pepsi co. is

widening the play field, over the last years; the company has investedmore than $2billion in its worldwide operations. When Coca-Cola

changed its formula in 1985, Pepsi stepped up its competition with its

long time archival claiming victory in the cola wars. Coke and Pepsi

expanded their rivalry to tea in 1991 when Pepsi formed a venture with

#1 Lipton in response to cokes announced venture with nestle (Nestea) it

has won over 30% of the ready to drink tea market, a part of the so called"new age beverages segment.

The beverage industry has witness the phenomenal growth over the last

few years necessitating capacity increase and builds up of commensurate

infrastructure to meet the business growth, which is accordingly matched.

PepsiCos success is the result of superior products, high standards

of performance, distinctive competitive strategies and the high integrity

of our people.


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COMPANY PROFILE-JAIPURIA GROUP: IN INDIA

With a Legacy of decades in the industrial arena, the Jaipuria Group of

Companies now stands at the one thousand five hundred Crore marks.

The group boasts of its several world-class business arenas like those of

Textiles, Bottling, education, and information technology, Food Chain

and Retailing, apart from numerous other business segments

JAIPURIA GROUP is a Rs.1500 Crore, family controlled, reputed

business house with over a century of operations in diversified fields.

The group as on today can boast of expertise and leadership in the fields

of food and beverages, textiles and real estate development with varied

interests in a wide

range of products and services.

The Jaipuria Group under the leadership of the three brothers SK Jaipuria,

RK Jaipuria and CK Jaipuria has today become one of the leading

business houses of

the country.

The following are the major areas of operations of the Jaipuria Group:

Food and Beverages

Textiles

Information Technology

Real Estate

Education


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It can be said with absolute certainty that the RKJ Group has carved out a

special niche for itself. Our services touch different aspects of

commercial and civilian domains like those ofBottling, Food Chain and

Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay

claim to expertise and leadership in the fields of education, food and

beverages.

The business of the company was started in 1991 with a tie-up with Pepsi

Foods Limited to manufacture and market Pepsi brand of beverages in

geographically pre-defined territories in which brand and technical

support was provided by the Principals viz., Pepsi Foods Limited. The

manufacturing facilities were restricted at Agra Plant only.

Varun Beverages Ltd. is the flagship company of the group.

The group also became the first franchisee for Yum Restaurants

International [formerly PepsiCo Restaurants (India) Private Limited] in

India. It has exclusive franchise rights for Northern & Eastern India. It

has total 27 Pizza Hut Restaurants under its company.

We 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.


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The group added another feather to its cap when the prestigious PepsiCo

International Bottler of the Year award was presented to Mr. R. K.

Jaipuria for the year 1998 at a glittering award ceremony at 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 of the Company:

Being the best in everything we touch and handle.

Mission of the Company:

Continuously excel to achieve and maintain leadership position in thechosen businesses; and delight all stakeholders by making economic

value additions in all corporate functions.

MAIN CREDENTIALS

1. VARUN BEVERAGES LIMITED received" GOLD STANDARDAWARD" for the production and quality control for the year 1996-97.

2. Jaipuria group was adjudged Best Bottler out of more than 2000

bottles all over the world for the year 1996-97.


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bottles per minute, which would mainly cater to northern markets of

India. And in future, they will also be used to manufacture fruits mince-

based soft drinks like slice and mangola.

INGREDIENTS OF SOFT DRINK:

We only use the finest ingredients to make Pepsi-Cola products. To

guarantee our consumers consistent quality, each ingredient must pass our

high standards, rigorous quality control tests and strict bottling

procedures.

Pepsi-Cola products contain natural flavors, including extracts of the

kola nut ND flavor oils derived from natural sources such as citrus and

other fruits. Caramel (made from corn sugar) adds color and flavor to our

colas. Other ingredients add a refreshing taste: phosphoric acid in colas;

citric acid and sodium citrate in Mountain Dew, Slice and Diet Pepsi.

We also put a freshness date on every can and bottle. Soft drinks may

lose some flavor over time so our freshness date tells consumers when the

product is freshest and best tasting.

Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel,

which shows the number of calories and other nutrients per serving.

There is essentially no fat in any Pepsi-Cola a product. The main

ingredients found in Pepsi-Cola products include carbonated water,

carbohydrates, sugar, sodium, potassium and caffeine. For a complete

breakdown by ingredients by product, see our product information for

Pepsi, Diet Pepsi, Mountain Dew, Slice and Aquafina.


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Caffeine

Caffeine provides a characteristic flavor to soft drinks. Caffeine is

naturally found in coffee, tea and chocolate. For comparison, an 8-oz. cup

of brewed coffee can have from 85-120 mg of caffeine on average, while

an 8-oz. serving of Pepsi contains about 25 mg of caffeine. An 8-oz. cup

of coffee therefore contains three to four times as much caffeine found in

a caffeinated colon.

There is no caffeine in Caffeine Free Pepsi, Caffeine Free Diet Pepsi,

Aquafina, Slice, Mountain Dew or Mirinda.

Caramel

Caramel is a flavoring that is added to some of our beverages.

Citric Acid

Citric Acid can be found in citrus fruits such as lemons and oranges.

Citric acid is used to bring out the flavor of other ingredients and imparts

a tang or tartness to beverages. Citric acid is not Vitamin C. the same

fruits that have citric acid often have Vitamin C but the technical name

for Vitamin C is ascorbic acid.

Gum Arabic

Gum Arabic is a purified natural vegetable gum obtained from the acacia

tree and is used in keeping our carbonated beverages well blended.


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Potassium

Potassium in Pepsi-Cola products may come from water or as part of

certain ingredients. For example, potassium may be combined with

benzoic acid, which helps prevent spoilage and flavor changes. Potassium

is an electrolyte that helps meet the mineral needs of active people.

Quillaia

Quillaia Extract is a purified extract derived from the bark of the Quillaia

tree. It is carefully selected based on its characteristics. It is cooked,

filtered and pasteurized. It is FDA-approved, non-hazardous. Quillaia is

found in some of our frozen drinks.

Red 40

Red 40 is a FDA-approved food coloring used in beverages.

Sodium

All of our products are "low sodium" and contains less than 110 mg per

eight-fluid-ounce serving. A number of beverages have less than 35-mg

sodium per serving, so they are considered "very low sodium" products.Sugar

Regular soft drinks and sports drinks are sweetened with sugar. There are

many types of sugar available today. In soft drinks and sports drinks, the

sugar is primarily high fructose corn syrup, which comes from corn.

Total Carbohydrates

Total carbohydrates include the sugars and any carbohydrate-like parts ofingredients, such as organic acids. Although diet drinks may have no

sugar, they may contain more than half a gram of carbohydrate.


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Ranveer kapoor

Fardeen Khan

Amitabh Bachhan

Govinda

Rani Mukherjee.

Tennis Stars :-

Leander Paes

Mahesh Bhupati

Football Players

Cyrus Broacha

Bhaichung Bhutia


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PRODUCT & PACK PROFILE

PRODUCT: -

Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularlyknown are one of the largest FMCG market in the whole world with thetotal annual sales around $40 billion. This product is generally availablein four kinds of packing.

Glass Bottles

Pet Bottles

Cans

Fountain rim

FLAVORS: -

Cola

Orange

Clear Lemon

Cloudy Lemon

Berry

Ginger

Mango Slice

Out of these products the 70% of the sales of the company come from theCola brand, which is the market leader in the most part of the country ofthese kinds of packaging in which the product is available make them80% of the sales come from these bottles. The businesses of returnable

bottles are very cumbersome and make the market very complex anddemanding.


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RECOMMENDATIONS:-

1. PEPSI, the choice of Generation next is not providing the first choice

of young generation. A young generation wants something strong in cold

drinks & thus prefers Thumsup. Pepsi should come out with some extra

strong taste to catch up maximum young generation & to become exactly

Generation Next drink.

2. Company should appoint competent & honest salesman so that they

could provide schemes to the entire retailers & cover their full route.

3. It is often seen that some salesman do not intimate schemes to the

retailer & few of the retailers complained about it. So there should be

frequent visits of Customer Executives to their respective areas to keep

the shopkeepers benefited with various schemes.

4. Delay in starting of supply vans from respective depot should be

checked & a proper time register should be maintained.

5. Most of the retailers are complaining about non-fulfillment of

commitments regarding their sampling. Company should make sure that

the retailers get the sampling on time so that they are satisfied.

6. Most of the retailers are complaining about delay & no replacement of

burst bottles. Marketing Management should sort some solutions to this

major problem of replacing burst bottles.

7. Half filled bottles should also be checked at the time of issue of goods

from the distributors godown to the respective routes.


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Market Share of Pepsi

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