SUMMER TRAINING REPORT

ON

COMPARATIVE ANALYSIS OF MARKETING EQUIPMENTS & MARKET SHARES OF PEPSI AND COCA-COLA FOR THE

YEAR 2009-10

Submitted in Partial Fulfillment of the requirement

Of

MASTER OF BUSINESS ADMINISTRATION (2009-2011)

Submitted to: Submitted by:

Vikas Tandon Amit Kant Ojha

Manager MBA (2009-11)

PepsiCo UIM

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ACKNOWLEDGEMENT

I am fortunate enough to have a summer training from a world’s Largest soft drink

manufacturer, and I am very thankful to Mr.Vikas Tandon ( Manager , PepsiCo India Pvt.

Ltd.) and Mr.Abhishek Aggarwal(Assistant Manager,PepsiCo India Pvt. Ltd.) who were being

my Project Guide was very kind to me always helped me whenever, I needed. I also express my

heartiest gratitude to Mrs.Bhavna Panghal (Coordinator MBA), who helped me in preparing

the questionnaire and I am thankful for his valuable suggestion in preparing the project report.

At last, I am thankful to all those persons who helped me in filling the questionnaire, and

I am really thankful to all above persons because without their help it was not possible to

prepare the project report.

Amit Kant Ojha

Roll no

UIM MBA (2009-11)

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PREFACE

Today is the era of competition. In this competitive market one has to present his or her

product in such a way so that it leaves the impression in the mind of others. Advertisement is

the way of doing so. An effective advertisement helps in increasing the scale of the product.

Advertisement conveys the features of the product to the end users. By the means of

advertisement one can know, what the new products available in the market are. One can also

say advertisement is the way of communication by which a company advertise about its

products, so that general public can know about the product and how to use the product and how

to use the product in his life and the sale of the product get increased. It makes the general

public know about the product, its features and its wideness in range. So that they could get

attracted to generate sales and increase sales volume and from customers perspective it provides

them to choose better quality products at minimal cost which ultimately creates value to

company. Also it is the mean through which a company could distinguish itself from its

competitors in consumers’ mind.

So one can say that effective advertisement helps in communicating about the product

and increase the volume of the sale.

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TABLE OF CONTENTS

1. INTRODUCTION 7

OVERVIEW: SOFT DRINK INDUSTRY 8

COMPANY PROFILE: PEPSICO 11

HISTORY 14

GLOBAL MARKETING NETWORK 17

PEPSICO IN INDIA 18

COMPETITOR PROFILE: COCA-COLA 21

COCA-COLA IN INDIA 23

MICHAEL PORTER MODEL FOR PEPSI 24

STRATEGIES OF PEPSI AND COKE 27

PRODUCT 29

BRANDS 31

DISTRIBUTION NETWORK 32

DISTRIBUTION CHANNELS 34

MARKET PLANNING AND RESEARCH 35

PRICING 36

MERCHANDISING 38

MARKETING MIX 40

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BRANDING 43

2. RESEARCH METHODOLOGY 45

3. ANALYSIS AND INTERPRETATION 47

SWOT ANALYSIS 47

STRENGTH 47

WEAKNESS 47

OPPORTUNITY 48

THREAT 49

SURVEY FORM ANALYSIS 50

4. PROBLEMS 64

5. CONCLUSION 66

6. SUGGESTIONS AND RECOMMENDATIONS 67

7. LIMITATIONS 69

8. BIBLIOGRAPHY 70

9. APPENDIX 71

QUESTIONAIRE 71

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TABLE OF FIGURES

1. MARKET SHARES OF BOTH SOFT DRINK COMPANIES 52

2. MARKET SHARE OF BRAND : PEPSI AND COKE 53

3. SHARES OF PEPSI AND COKE IN LUCKNOW CITY 54

4. CHANNELS OF SALE 55

5. BRANDS COVERED BY DIFFERENT OUTLETS 56

6. DAILY SALE OF RETAILERS 57

7. COOLING EQUIPMENTS OF BOTH COMPANIES 58

8. BOTTLE OF BOTH COMPANINES IN FRIDGES 59

9. GLOW SIGN OF PEPSI AND COKE 60

10. FLEX BOARD OF PEPSI AND COKE 61

11. PAINTINGS OF PEPSI AND COKE 62

12. ASSETS OF BOTH COMPANIES 63

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INTRODUCTION

Today is the era of competition. In this competitive market one has to present his or her

product in such a way so that it leaves the impression in the mind of others. Advertisement is

the way of doing so. An effective advertisement helps in increasing the scale of the product.

Advertisement conveys the features of the product to the end users. By the means of

advertisement one can know, what the new products available in the market are. One can also

say advertisement is the way of communication by which a company advertise about its

products, so that general public can know about the product and how to use the product and

how to use the product in his life and the sale of the product get increased. It makes the

general public know about the product, its features and its wideness in range. So that they

could get attracted to generate sales and increase sales volume and from customers

perspective it provides them to choose better quality products at minimal cost which ultimately

creates value to company. Also it is the mean through which a company could distinguish itself

from its competitors in consumers’ mind.

So one can say that effective advertisement helps in communicating about the product and

increase the volume of the sale.

For the sake of above PepsiCo have always maintained itself in retaining its share in consumers

mind. Through its continuous and effective advertisements PepsiCo have proved its presence all

over the Globe.

PepsiCo India which carryout sales and promotion operations have also done some great job in

Indian Scenario. Although they are not fully but continuously successful in providing value to

consumer.

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Need of the Study

The need of study is to know about Market, Retailers and Distributors responses,

competitor’s strategies, product place and also to know about the strength, weakness,

opportunities and threats of PEPSICO INDIA and for the sake of this SWOT analysis is to be

done which provide solution to the various problems and will help to analyze various issues in

soft drink market.

The report provides relevant ideas and information which help company to come out

from various problems.

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SOFT DRINK INDUSTRY: AN OVERVIEW

It all began in 1886 when John Syth Pemberton, a pharmacist in Atlanta, Georgia concocted

caramel-colored syrup in a three-legged brass kettle in his backyard. Unaware the pharmacist

has given birth to a caromel colored syrup, which is now the chief ingredient of the world’s

favorite drink. The syrup combined with carbonated the soft drink market. It is estimated that

this drink is served more than one thousand million times in a day.

Equally oblivious to the historic value of his actions was Frank Robinson, his partner and book

keeper. Pemberton & Robinson laid the first foundation of this beverage when an average nine

drinks per day to begin with, upping volumes as sales grew.

In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the

1950’s Colas were daily consumption items, stored in house hold fridges. Soon were born

other non- cola variants of this product like orange & Lemon.

Now, the soft drink industry has been dominated by three major players –

(1) The New York based Pepsi co. Inc. (2) The Atlanta based Coca Cola co. (3) The united

Kingdom based Cadbury Schweppes.

Throughout the globe these major players have been battling out for a bigger chunk of the

ever-growing cold drink market. Now this battle has begun in India too. India is now the part of

cold drink war. Gone are days of Ramesh Chauhan, India’s one time cola king and his bouts of

pistol shooting. Expect now to hear the boon of cannons when the Coca Cola & Pepsi co.

battles it out for, as the Jordon goes a bigger share of throat. By buying over local competition,

the two American Cola giants have cleared up the arena and are packing all their power behind

building the Indian franchisee of their globe girdling brands. The huge amount invested in

fracture has never been seen before. Both players seen an enormous potential in his country

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where swigging a carbonated beverage is still considered a treat, virtually a luxury.

Consequently, by world standards India’s per capita consumption of cold drinks as going by

survey results is rock bottom, less than over Neighbors Pakistan & Bangladesh, where it is four

times as much.

Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to

add muscle to its infrastructure in bottling and distribution. This is apart from money that

company’s franchised bottles spend in upgrading their plants all this has contributed to

substantial gains in the market. In colas, Pepsi is already market leader and in certain cities like

Delhi, Pepsi outlets are on one side & all the other colas put together on the other. While coke

executive scruff at Pepsi’s claims as well as targets, industry observers are of the view that

Pepsi has definitely stolen a march over its competitor coke.

Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image

turnaround is no small achievements, considering that since it was established in 1989, taking

the hardship route prior to liberalization and weighed down by export commitments.

Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff

competition between first two, both Pepsi and coke have started, sponsoring local events and

staging frequent consumer promotion campaigns. As the mega event of this century has

started, and the marketers are using this event – world cup football, cricket events and many

more other events.

Like Pepsi, coke is picking up equity in its bottles to guarantee their financial support; one side

coke is trying to increase its popularity through.

Eat Food, enjoy Food. Drink only coca cola. Eat cricket, sleep cricket. Drink only coca cola. Eat

movies, sleep movies. Drink only coca cola.

On the other side of coin Pepsi has introduced AMITABH BACHHAN for capturing the lemon

market through MIRINDA – Lemon with “zor ka jhatka dhere se lage”.

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But no doubt’ that UK based Cadbury is also recognizing its presence. So there is a real crush in

the soft drink market with launch of the carbonated organize drink Crush, few year ago in

Delhi., the first in a series of a launches , Cadbury Schweppes beverage India (CSBI) HAS

PLANNED:- The world third largest soft drink marketers all over the country CSBI who wholly

owned subsidiary of the London based $ 6.52billion. Cadbury Schweppes is hoping that crush

is going well and well not suffer the same fate as the Rs. 175 crore Cadbury India’s apple drink

Apella. CSBI is now with orange (crush), and Schweppes soda in the market.

As orange drinks are the smallest of non-cola categories that is Rs. 1100 crores markets with

10% market share and cola heaving 50% is followed by Lemon segment with 25%.

The success of soft drink industry depends upon 4 major factors viz.

Availability

Visibility

Cooling

Range

AVAILABILITY

Availability means the presence of a particular brand at any outlet. If a product is not

available at any outlet and the competitor brand is available, the consumer will go for that

because generally the consumption of any soft drink is an impulse decision and not

predetermined one.

VISIBILITY

Visibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsi cola

and this brand is not displayed in the outlet, then its availability is of no use. The soft drink

must be shown off properly and attractively so as to catch the attention of the consumer

immediately Pepsi achieves visibility by providing glow signboards, hoarding, calendars etc.

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to the outlets. It also includes various stands to display Pepsi and other flavors of the

company.

COOLING

As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the

sales. The brand, which is available chilled, gets more sales than the one which is not, even if

it is more preferred one.

RANGE

This is the last but not the least factor, which affects the sale of the products of a particular

company.

Range availability means the availability of all flavors in all size

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COMPANY PROFILE: PEPSICO

PepsiCo is the 18th largest American Company with its worldwide operations in 190 countries.

The company employees over half a million persons and is possibly the largest employer.

PepsiCo has set up a fully integrated operation in India- manufacturing, research and

development, marketing, distribution, covering fruit/vegetable processing, exports, snack

foods, beverages and restaurants, including franchising of beverage territories for beverage

business and restaurants it has set up a holding company to further accelerate growth in the

future through new initiatives and joint ventures. PepsiCo started its operations in India in

1989 with the formation of Pepsi Foods Limited.

All of Pepsi’s businesses are employment intensive. PepsiCo employs over 35000 persons

directly and indirectly in its beverage business and other operations. 28 bottling plants and

new projects are combing up in West Bengal, Karnataka, Rajasthan, Gujarat and Maharashtra.

In May 1990, Pepsi was launched in Jaipur. Pepsi broke its advertising campaign “Are you

ready for the magic” featuring Remo Fernandez and Juhi Chawla on 15 th August 1990. Since

then this magic has won millions of Indian hearts. Starting from a Zero base, Pepsi, today,

enjoys a leadership in Cola category. The company’s beverage brands are Pepsi, Seven Up ,

Miranda Lemon, Miranda Orange and Slice. It also has Dukes, lemonade, and Dukes Soda. The

snack foods are Ruffles, Cheetos and Lehar Namkeen. Pepsi services all retailers at least thrice

a week and in summer, very often, twice a day. The company along with the franchisees has 25

bottling plants spread all over India, of which 12 plants are owned by PepsiCo.

PepsiCo is planning to invest another Rs. 500 crore in its Indian operation in the next two

years. Each year, Pepsi is likely to generate an additional employment of 5,000 persons in its

business alone.

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PepsiCo is one the largest companies in the U.S. It figures amongst the largest 15 companies

worldwide according to the number of employees hired. It has a U.S. Fortune rank of 50.The

company profits for 1997 were $2.14 billion on revenues of $20.92 billion and Pepsi is bottled

in nearly 190 countries.

PepsiCo is a world leader in the food chain business. It consists of many companies amongst

which the prominent once are Pepsi-Cola, Frito-Lay and Pepsi Food International. The group is

presently into two of the most profitable and growing industries namely, beverages and snack

foods. It has scores of big brands available in nearly 150 countries across the globe. The group

has established for itself once of the strongest brands in various segments of its operations.

The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew and other

brands worldwide and 7-UP outside the U.S. markets. These are positioned in close

competition with Coca-Cola Inc. of USA. A point which is worth a mention is that Coca-Cola

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gets 80% of its profits for International operations while the same figure for PepsiCo stands at

6%. The segment is also in the bottling plants and distribution facilities and also distributes the

ready to drink tea products of Lipton in North America. In a joint venture with orient spray

juice products PepsiCo also manufactures and distributes fruit juices.

The snack food division manufactures and distributes and markets chips and other snacks

worldwide. The international operations of this segment extend to the markets of Mexico, the

UK and Canada. Frito-Lay represents this segment of PepsiCo.

The restaurant segment earlier primarily consists of the operations of the worldwide Pizza Hut,

Taco Bell and KFC chains, PFS. Pepsi Co’s restaurant distribution operation, supplies company

owned and franchise restaurants in the U.S. The company ventured into restaurant business

with Taco Bell, KFC, Pizza Hut ended last year when they were spinned off from the company.

A packaged goods company comprised of Pepsi-Cola Company and Frito-Lay will continue to

bear the PepsiCo name. The move should enhance both corporations ability to prosper with

their own fully dedicated structure and management team.

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HISTORY

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 TO HIS

CUSTOMERS. HE SUCCEEDED BEYOND ALL EXPECTATIONS, INVENTING THE BEVERAGE NOW

KNOWN AROUND THE WORLD AS ... PEPSI.

Caleb Bradham, a Pharmacist had a soda fountain in his drugstore, where he served his

customers refreshing drinks that he created himself. His most popular creation was a unique

mixture of carbonated water, kola nuts, vanilla and rare oils, named “Brad’s Drink” by his

customers. Caleb decided to rename it “Pepsi-Cola,” and advertised his new soft drink to

enthusiastic customers. Sales of Pepsi-Cola started to grow, convincing him to form a company

and 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. An official patent was awarded on June 16, 1903. 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-Cola so that people everywhere

could enjoy it.

Caleb sold 7,968 gallons of syrup in 1903. Two years later, he awarded two franchises to bottle

Pepsi-Cola to independent investors in Charlotte and Durham, North Carolina. In 1906, the

number of franchises grew to 15, and leapt to 40 by 1907. By the end of 1910, there were

Pepsi-Cola franchises in 24 states, and the company was selling more than 100,000 gallons of

syrup per year. 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 for a growing company. They were then, and continue to be

today, the cornerstone of the Pepsi-Cola enterprise.

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Caleb erected a Pepsi-Cola headquarters so spectacular that the town of New Bern featured it

on a postcard. The company was one of the first in the United States to switch from horse-

drawn transport to motor vehicles.

Pepsi-Cola’s advertisements changed, too. Famous racing car driver Barney Oldfield

endorsed Pepsi in newspaper ads as “a bully drink ... refreshing, invigorating, a fine bracer

before a race.” Caleb promoted Pepsi sales with the slogan, “Drink Pepsi- Cola. It Will Satisfy

You.”

The outbreak of World War I changed the U.S. financial landscape, and the cost of

doing business increased drastically. Sugar prices fluctuated wildly between record highs and

disastrous lows, and so did the cost of producing Pepsi-Cola. In 1923, Pepsi-Cola was bankrupt.

Caleb returned to his pharmacy and sold the valuable Pepsi-Cola trademark to Craven Holdings

Corporation, the first of what would be several owners.

Soon, New York stockbroker Roy C. Megargel bought the Pepsi-Cola trademark and

struggled to save the business. He moved the company’s operations from New Bern, North

Carolina, to Richmond, Virginia, in 1923, and with his own funds made up the deficits the

company incurred annually. In 1931, despite his best efforts, the restructured National Pepsi-

Cola Company was declared bankrupt for the second time. 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. Under Guth’s leadership, Pepsi-Cola

became a thriving national brand once again. Within two years after its sale, 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.

PepsiCo got its start in 1965, when Pepsi-Cola and Frito-Lay merged to create a new

company. Since then, PepsiCo, Inc. has continued to grow, adding new brands and product

lines. Tropicana Products, Inc. joined the PepsiCo portfolio in 1998 and gives PepsiCo the

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strongest brand name in juice. The company hit a grand slam with its merger with The Quaker

Oats Company in 2001, bringing together two incredibly strong and successful food and

beverage companies. The PepsiCo-Quaker union added the powerful Gatorade thirst quencher

and its Quaker brand, a symbol of healthy eating that extends PepsiCo’s reach into breakfast,

on-the-go foods, and snacks for kids. Today, PepsiCo is a $29 billion company, employing more

than 150,000 people speaking more than 40 languages around the globe. The company is

consistently recognized for its corporate citizenship, philanthropic efforts and diversity

programs It is the world’s fourth-largest food and beverage company— and is staking its claim

as the global leader in convenience foods and beverages. PepsiCo has a strong plan to

continue to expand with an enormous lineup of convenience foods and drinks that provide

great taste, nutrition and fun around the clock.

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PEPSI IN CHANGING DYNAMICS

GLOBAL MARKETING NETWORK

With around 450 depots, 8000 distributors and 10, 00,000 retailers dotting the country, the

company has one of the best and strong distribution networks in the nation.

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PEPSI IN INDIA

India’s most critical challenge is to reduce unemployment in the first instance, before a leap of

new employment.

According to the famous economist Lord J. M. Keynes-every investment creates employment.

The answer to India’s problems of unemployment is investment.

Only new investment generates employment, low investment can only result in low

employment.

After the liberalization of Indian economy in 1991, the substantial foreign fund inflow,

primarily in the consumer sector has already taken place. This has generated tremendous

economic activity resulting in major employment growth, in this sector. One good example of

foreign investment can be PepsiCo, which began to invest in India in 1989, and in 1994-95

itself, has invested over Rs. 300 crores. Most of Pepsi’s business has a heavy focus on service

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to the consumers and retailers, both in domestic and international markets. The company

claims to have generated, directly and indirectly over 35,000 jobs.

Since its entry, Pepsi has not only brought in substantial foreign investment, but also

technology and know-how, which have been used is local and export businesses. The

international focus of its export business is also very employment friendly.

The largest employment is in the beverage industry. The cycle begins with a concentrate

manufacturing unit which is supplied to bottling units where empty glass bottles are cleaned

and filled and sent to the warehouse, and then to the distributor and finally to the retailer,

who chills the soft drinks and dispenses to consumer. A reverse cycle takes place for the empty

bottles.

Pepsi’s modern concentrate plant, set up with an investment of Rs. 12 crore, at Channo in

Punjab, supplies concentrate to 25 beverage manufacturing units spread over the country in

addition, it generated substantial employment in units supplying raw materials, distribution

vehicles, glass bottles, plastic crates and to small artisans, painters and small traders engaged

in a number of marketing activities.

As most of the ‘ready –to-serve’ aerated soft drinks in this country are solving returnable glass

bottles, a huge distribute on force is required to sell products and pick up empties. In 1997,

Pepsi expects to touch sales involve of about 2,500 million bottles. Pepsi services all retailers at

least thrice a week and in summer, very often, twice a day.

The company along with the franchisees has 25 bottling plants spread all over India, of which

12 plants are owned by PepsiCo.

Over 10,000 persons are engaged in the soft drink manufacturing units.

After the bottles are filled in the units, a primary movement takes place from the factory of the

warehouses and a secondary movement from the warehouse to the retailers. Primary

movement from factory to warehouse requires, 1,20,000 trucks per annum, covering distances

to 30 miles to 600 miles per day, depending on warehouse distance from the factory. For

secondary distribution, over 1,800 trucks, 3,000 three wheelers, and over 500 hand carts and

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push carts are employed by the Pepsi system. Each truck is manned by three persons- a driver-

cum salesman and two loaders. Pepsi also has over 1,500 carrying and forward agencies (C &

Fas) and distributors. Employment at distributors average 10 persons. This works out to an

employment of over 15,000 persons.

Another feature of Pepsi system is installation of 4,000 vending machines for dispensing chilled

Pepsi soft drinks in various outlets such as railway stations, airports, recreation spots,

restaurants, department stores, cinema houses, etc. Each of these vending machines is

managed by one person resulting in employment of 4,000 persons.

A large number of technicians are also engaged in the maintenance of these expensive

machines, which were assembled in India. Pepsi has four vendors to manufacture the 150

million disposable cups which are given free along with chilled Pepsi to the consumers from

the fountain Pepsi operation.

In the last 18 months, PepsiCo has acquired a fleet of 500 trucks which are used for

distribution of soft-drinks to the retailers and proposes to add directly, another 150 trucks in

the next six months.

Pepsi bottlers will be adding 500 trucks and three wheelers, to intensify their distribution. This

really proves that single economic activity like beverages has resulted in major benefits to a

number to a number of industries.

The system generates substantial employment in marketplace activities such as signages,

hoardings, bill boards and other advertisements, where a large number of painters and other

craftsmen are engaged. For example, the number of persons engaged in installation of

signage’s, sign boards, glow signs, and their fabrication would be of the order of 120 persons in

Delhi alone, dedicated to Pepsi alone. Similarly going by these numbers, the national

employment figure for dedicated painters and neon-sign fabricators could be over 1,500

persons. The company recognizes India’s potential of skilled manpower which is available in

abundance. PepsiCo is planning to invest another Rs. 500 crore in its Indian operation in the

next two years. Each year, Pepsi is likely to generate an additional employment of 5,000

persons in its business alone.

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What striking about Pepsi’s Indian operations is, that the operation has nothing foreign about

it, except the Rs. 500 crore in foreign exchange, technology and expertise it has brought from

its parent company.

The concentrate, returnable glass bottles, crates, trucks are all “Made in India” giving

employment opportunities to thousands of people. The entire staffs of Pepsi in India-right

from the workers to supervisory staff, including the Chairman of the company in India, are all

Indians. In fact, PepsiCo. The parent Company, has posted many Indian Managers in important

assignments outside India-a true recognition of Indian managerial the technical talent.

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COCA COLA PROFILE

The Coca-Cola Company is the world's leading manufacturer, marketer and distributor

of non-alcoholic beverage concentrated syrups, with world head quarters at Atlanta, Georgia.

The Company and its subsidiaries employ nearly 29,000 people around the world. Syrups,

concentrates and beverages bases for Coca-Cola, the Company's flagship brand, and over 230

other company's soft drinks brands are manufactured and sold by The Coca-Cola Company and

its subsidiaries in nearly 200 countries around the world.

By contract with the Coca-Cola Company or its local subsidiaries, local business are

authorized to bottle and sell the company soft drinks within a certain territorial boundaries

and under that ensure the highest standards of quality and uniformity.

The Coca-Cola Company stock, with ticker symbol KO, is listed and traded in the United

States on the New York stock exchange. Common stock is also traded on the Boston,

Cincinnati, Chicago, Pacific and Philadelphia exchanges. Outside the United States, company’s

common stock is listed and traded on German and Swiss exchanges.

The Company's operating, management structure consists if five geographic group plus

The Minute Maid Company. The North America Group of comprises the Unites States and

Canada. The Latin America group includes company's operations across Central and South

America, from Mexico to the tip of Argentina. The Greater European markets in Western

Europe and the rapidly growing nations of Eastern and Central Europe. The Africa and the

Middle East Group encompasses the Middle East and the entire continent of Africa. The Asia

Pacific Group has operations from India through the Pacific region including China, Japan and

Australia.

The Minute Maid Company, the company's juice business in Houston, Texas, is the

world’s leading marketer of juices and juice drinks. The Minute Maid Company's product

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includes Minute Maid Premium Lemonade Iced Tea, Minute Maid Coolers, Hi-c Blaster and

Five Alive.

The Coca-Cola Company has a commitment, more than a century old, to social

responsibility through philanthropy and good citizenship. The company's reputation for a

good corporate citizenship results from charitable donations, employee volunteerism,

technical assistance and other demonstrations of support in thousands of communities

worldwide.

The Coca-Cola company continues to sponsor the world's most exciting sport events

including World Soccer, the National Football League, National Basketball Association,

NASCAR, the Tour de France, the Rugby World Cup, COPA America and numerous local sports

events. The Coca-Cola Company has sponsored the Olympics games since 1928.

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COCA COLA INDIA

After a 16-years absence, Coca-Cola returned to India in 1993. The Company's presence in

India was cemented in November that year in a deal that gave Coca-Cola ownership of the

nation's top soft-drink brands and bottling network.

Coca-Cola India has made significant investments to build and continually improve its business

in India, including new production facilities, wastewater treatment plants, and distribution

systems and marketing equipment.

During the past decade, the Coca-Cola system has invested more than US$ 1 billion

in India

Coca-Cola is one of the country's top international investors

In 2003, Coca-Cola India pledged to invest a further US$100 million in its operations

Coca-Cola business system directly employs approximately 6,000 local people in

India

In India, we indirectly create employment for more than 125,000 people in related

industries through our vast procurement, supply and distribution system

27 | P a g e UIM-MBA (2009-11)

Virtually all the goods and services required to produce and market Coca-Cola

locally are made in India.

The Coca cola system in India comprises of 27 wholly company owned bottling

operations and another 17 franchisee owned bottling operations.

Coca cola India has 2 subsidiaries:

Hindustan coca cola beverages private limited

Hindustan coca cola marketing private limited

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MICHAEL PORTER MODEL FOR PEPSI

POTENTIAL ENTRANTSBUYERS

SUPPLIERS SUSTITUTES

INDUSTRY COMPETITORS

All the three soft drink giants i.e. Pepsi, Coke, Cadbury Schweppes are already here. No other

company plans to enter this capital-intensive industry at the moment. The investment in this

industry is more than Rs.100 per crate. This leaves no scope for small players who cannot

29 | P a g e UIM-MBA (2009-11)

match the might of these three multinational giants. Thus at the moment there are no

potential entrants.

All the three soft drink giants i.e. Pepsi, Coke, Cadbury Schweppes are already here. No other

company plans to enter this capital-intensive industry at the moment. The investment in this

industry is more than Rs.100 per crate. This leaves no scope for small players who cannot

match the might of these three multinational giants. Thus at the moment there are no

potential entrants.

SUPPLIERS:

The bottling is done either by franchises or by company owned bottling plants. There are 18

franchisee and 13 companies owned bottling plants. The empty glass bottles and shells are

sourced from local manufacturers. The ingredients for the concentrate are sourced and

manufactured locally. There is abundant supply of water and sugar. Thus on the suppliers side

Pepsi does not have a problem. Presently the cans are imported and filled locally near Pune in

Maharashtra. Seeing the potential, various local manufacturers are setting up plants for

manufacturing cans in India. Soon this problem will also be resolved.

BUYERS:

The following are the various market segments

On Premise Market

Home Market

At Work Market

Youth Market

Special Event Market

High Visibility Market

Characteristics of the market segment: -

1. On - premise market:

30 | P a g e UIM-MBA (2009-11)

This is otherwise called the “Route market”. This market caters to the people who are on the

move - people shopping, eating out, and going to and from work, etc. Because of this product

display and advertising signs - prominence become more important to cash in on the impulse

nature of the product.

2. Home Market:

This market consists of people who buy essentially for consumption at home. By and large, the

housewife is the decision maker. The no. of zero-case calls is higher here than in route

segment. Time spent per case is also high. Cash collection also poses problems.

3. At work-market:

This market comprises of consumers working in office factories and Industrial establishment

etc. The sales can be had either through canteens or activating nearby outlets and developing

it properly. Generally, in this market, the time spent per outlet is quite high because of

formalities involved.

4. Youth Market:

This market is conceived as one of schools, colleges, and youth clubs. This is an important

segment in terms of its long life and amenability effective advertising. Association of our

product with a youth activity with good merchandising support will help develop the market

well.

5. Special Events Market:

This market comprises of people at picnics, parties social events, conferences etc. These are

generally bulk order markets and a good relation between salesmen and consumers at large,

becomes important. It is necessary to maintain a good information system to get timely

information about this demand.

6. High Visibility Market:

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This segment is not a very distinct market as such. This comprises of places where there is a

high visibility to the product displayed. This is especially true of places where lot of people

passes through such as Airports and Railway stations. These are the places, which can give

impression to the people as to who is the market leader. Strengthening this market will be a

re-enforcing factor for over-all product image in the market.

People constantly move from one segment of our market to another during a day a consumer

is a part of several market-segment, perhaps even all the segments.

SUBSTITUTES:

Any drink, which quenches thirst, is a substitute. Thus this industry is highly competitive as

even water is substitute and almost a dozen products are launched every year. Recently Dabar

India Ltd. has launched “Real” - fruit juices priced at Rs.30 for a 500-ml.-tetra pack and the

makers of “Frooti” (PARLE-G) have launched “Jolly Jelly”. But nowadays, people prefer

carbonated drinks because of the taste, fizz and the fun element attached with it.

COMPETITION:

The other two major players in this industry are Coca Cola and Cadbury Schweppes. The real

competition is between Pepsi and Coke. Presence of competition will ensure expansion of the

market by collective efforts, which is growing at a rate of 25% annually. There is tremendous

potential considering the per capita consumption of India, which is a measly 0.6 liters as

compared to US where it is 83.5 liters. Presently Pepsi has stolen a march over its rival because

of its marketing efforts.

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STRATEGIES OF PEPSI AND COKE

The Pepsi Process: Despite being a global brand, Pepsi has built its success on meeting the

Indian consumer’s needs, particularly in terms of making the brand synchronize with localized

events and traditions. Instead of harping on its global lineage, ergo, it tries to plug into ethnic

festivals, use the vernacular indifferent part of the country, and blend into the local fabric.

Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff scheme, which offers

large discounts on other products to Pepsi-buyers as well as local.

The Coke Copy: Instead of creating a bond with the customers through small but high-impact

events, Coca-Cola chose to associate itself with national and international mega events like the

World Cup Cricket, 1996, and world cup football 1998. But now coke is also entering into local

actions. Coke is also trying to make their brand synchronize with localized events traditions

and festivals. Coca-Cola new tag line in this advertisement is “Real shopping, real refresher”. In

this way Coke is copying Pepsi.

EMPOWERMENT

The Pepsi Process: Once of the strongest weapons in Pepsi’s armory is the flexibility it has

empowered its people with. Every manager and salesperson has the authority to take

33 | P a g e UIM-MBA (2009-11)

whatever steps he, or she, feels will make consumers aware of the brand and increase its

consumption.

The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by the need for

approvals from Atlanta for almost everything. In the past, this has shown up in its stubborn

insistence on junking the franchisee network it had acquired from Parle; in its dependence on

its own feedback mechanism over that of its bottlers;’ and on its headquarters-led approach.

PRICE

The Pepsi process: Pepsi has consistently wielded its pricing strategy as in invitation to

sample, aiming to turn trial into addiction.

It launched the 500 ml bottle in 1994 at Rs. 8 versus Thumps Up’s Rs. 9, in April, 1996, its 1.5

liter bottle followed Coke into the marketplace at Rs. 30 – Rs 5 less than Coke’s .But it couldn’t

continue the lower price positioning for long.

The Coke Copy: Initially, coke carbon-copied the strategy by introducing its 330ml cans in

January 1996, at an invitation price of Rs. 15 before raising it to Rs.18. By this time, it had

realized that the Coca-Cola brand did not hold enough attraction for customers to fork out a

premium.

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PRODUCT

The term SOFT DRINK was originated to distinguish the flavored refreshment from hard liquor.

Soft drink was flavored to change the habits of earlier Americans who used to have hard

liquor. The fruits and vegetable juices are not considered soft drinks. Pepsi is a pure soft drink,

which is enjoyed in our 195 countries. It is made of artificial flavors and contains no fruit juice

or fruit pulp.

How soft drinks are made:

Soft drink consists of carbonated water and syrup. Adding carbonated gas to water under

pressure produces carbonated water. The gas makes the water bubble and fizz in most cases.

Syrup is made of a concentrate and sweetener. A concentrate is a blend of flavor and acid. In

concentrate for most soft drinks also include coloring. The concentrate contains a unique

blend of ingredients, which give Pepsi its distinctive flavor. Syrup can be also being prepared

directly from individual ingredients. Carbon dioxide gas gives beverage its sparkle and tangy

taste and prevents spoilage. While it has not been conclusively proved that carbonation offers

a direct medical benefit, carbonated beverage are also used to alleviate post operative nausea

when no other food can be tolerated. Carbon dioxide is supplied to soft drinks by

manufactures in a liquid form maintained under approximately 1,200 pounds per square inch

pressure in heavy steel containers.

Many of the flavorings found in soft drinks come from natural sources such as fruits juices and

oils obtained from roots, citrus fruit peels, and leaves of various plants. Some flavorings are

artificial, but similar to natural flavoring in taste. Citric acid and phosphoric acid give soft drink

a tart taste. Caramel is usually used as a coloring in cola drinks. The sweeteners may come

35 | P a g e UIM-MBA (2009-11)

from maize, sugar beet or sugarcane. Artificial sweetener, such as saccharine and aspartame is

used in Diet Pepsi and Diet Coke.

The mixing is carried out under the highest standards of quality control and accordingly to

precise instructions in order to insure that every consumer always receives a product of the

same trusted quality. The bottling of Pepsi in modern plants such as there are in India is carried

out at the rate of 600 bottles a minutes. Pepsi is approved by the National Health Authorities

of every country in which it is sold.

Packaging

Pepsi is supplied in -

Returnable glass bottles (200 ml, 250 ml, and 300 ml) which are supplied in molded

plastic shells.

1.5 & 2 litre PET bottles.

330 ml of cans.

PMX or dispensing machines (Fountain Pepsi)

There are two methods of vending or dispensing soft drinks:

1. Pre-mix system - In the premix system, the finished beverage is prepared by the soft drink

manufacturers and filled into 5 to 10 gallon stainless steel tanks. The tanks of the beverage are

attached to the vending machine where the beverage is cooled and dispensed.

2. Post-mix system - In post-mix system the vending machine has its own water and carbon

dioxide supply. The water is supplied through Aqua Guard purifier and is carbonated as

required by carbon dioxide cylinder. It is then mixed with concentrate or flavored syrup which

is kept in BIB (Bag in Box) as it is dispensed into the cup. Pepsi has post mix vending machines

and coke has pre mix vending machines.

Cans & Bottles - Among the different packages in the market in the next couple of years could

be cans and pet bottles - apart from the standard glass bottles. One of the standard packages

36 | P a g e UIM-MBA (2009-11)

that one is likely to see in the coming years is buying more at lower price. Pepsi introduced 200

ml bottles of Pepsi at the price of Rs.6. It was an instant hit while packages of those kinds are

also being worked out keeping in view of the rural market. But it could also lead to the killing

of the standard 300 ml size bottles that is in vogue now. The consumer would get a choice of

soft drink at a cheaper and an affordable price - even if it means breaking of certain standards

shapes and sizes of the packages. The broad strategies of both penetrating the market are still

being made. And the amount of thought that is going into it can be made out from the very

fact that the manufacturers are thinking of such innovations as the “picnic packages” of the

brand for those on holiday trip. The battle will be engrossing as packages will be brought to the

market and be pulled by the competing rivals. There would be price wars and competitions on

qualities.

In the US, 55% of the carbonated soft drink (CSD) is sold today in returnable bottles, 30% on

one-trip containers and 15% through vending machines and fountain. In other parts of the

world, Pepsi are sold mainly in returnable bottles. Pepsi in cans are more popular in countries

such as US, Canada, Australia, Philippines and England. Canned Pepsi is also sold in India.

BRANDS

The current Indian market consists of seven-flavor segment. Cola segment is by far the most

widely consumed soft drinks.

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SEGMENT BRAND

COLA PEPSI

ORANGE MIRINDA

CLOUDY LIME MIRINDA LEMON

CLEAR LIME 7-UP

GREEN MOUNTAIN DEW

SODA EVERESS

MANGO SLICE

In addition to these segments, Pepsi has developed wide range of soft drinks such as Diet

Pepsi, Caffeine Free Pepsi and low sodium Pepsi, Sugar Free -Pepsi Max.

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DISTRIBUTION NETWORK

Tools of Distribution:

The distribution network of any organization accounts a lot for its success. It’s Franchise,

Shukla Sales, Saloni agency, Gauri sales and distribution, Pepsi House has maintained an

effective and regular distribution network. The company follows its distribution through:

1. Depot System:

In this, the company dispatches the lot of its product and is stored in a place called the depot.

The staff is then responsible for maintaining the constant regular supply of soft drinks in the

areas falling in its territory. The company has a depot in VIP Road, Bargavan, Khadara,

Madiyavan, Triveni Nagar, is catering all the needs of rural areas and nearby areas of Sitapur

Road.

a) Retail routes: A route covers all the outlets in a specific region or locality salesman along

with two or three helpers with the help of a vehicle distribute the company's product on a

particulars route. The company has about 300-400 retail outlets.

2. Trade Channel:

A category of competing business locations with similar business and product offerings and

methods of selling to consumes engaged in specifically defined activities.

Distribution = Sales + Delivery + Merchandising + Local Account Management

39 | P a g e UIM-MBA (2009-11)

DISTRIBUTION CHANNEL

Produced (Soft drink mix of all type of brands of Pepsi is prepared)

Bottling Plant (Empty Bottles are filled with the concentrate mix at the plant situated at

Kanpur Dehat)

Product (Different brands of Pepsico like Pepsi, Mirinda, Mountain Dew, 7 UP, Slice etc.

are placed in crates)

Ware Houses (These filled crates come to the warehouse of PepsiCo situated at Lucknow)

Distributor (Now these crates are transferred to various distributors of which one of them is

Saloni Traders, Sitapur Road)

Retailer (Through Distributor, this goes to various retailers like Dubey Traders,Surendra Cool

Corner,Dixit Cool Corner,Aishwarya Milk Bar etc.)

End Consumer (Finally it reaches to end consumers i.e., various peoples of the city who drinks

it according to their taste and preferences)

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MARKET PLANNING AND RESEARCH

Marketing to the Customers

Managing customer relationship starts with trade channel business planning to improve

customer satisfaction.

a) Understanding: Customer is important. This includes gaining a basic understanding of each

trade channel.

b) Flexibility: It is important to grow with the customers, and became more sophisticated

more experts ourselves.

c) Adding Values: Customer must be helped in increasing their sales and profits the way

should be found out to serve them better.

Planning in Soft Drink Industry:

Planning is bridging the gap between where we are and where we want to be in the future.

The main areas of planning in soft drink industry are:

1. Planning of Target: The target for a New Year is planned with a target of achieving 20%

growth on the previous year's peak season production.

2. Planning of Dealers: Again in increase of 20% on the number of previous year dealers is

done in different regions.

3. Planning of routes and vehicles: A route covers all the outlets in a specific region or

locality. With the increase in number of deals new routes are planned and hence proper

numbers of vehicles for distribution are analyzed and planned.

4. Planning of empties: The new empties or bottles required are 1/5 times of the target that

has been set the coming year.

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PRICING

Pricing is one of the most difficult tasks among the four P's. Decisions on pricing are the most

important in marketing. Strategy marketing executives do not give pricing special authority.

There is not pricing specialist in the same sense as there is an advertising specialist or a

distribution specialist. This is perhaps because price decisions are not restricted to one

particular department. They cut across all department of business form production to

advertising and distribution.

It is always necessary to first look any product in the light of the following criteria before

deciding on a price.

1. The potential demand for the product.

2. The time it will take before the product begins to yield profits.

3. The elasticity of demand.

4. The target groups.

5. What promotional strategy can be employed and how much of the price should be

included in the promotion?

6. What kind of distribution arrangement is necessary?

7. At what state of the product life cycle is the product?

Pricing decisions interconnect marketing actions with the financial objectives of the enterprise.

Among the most important marketing variable influenced by pricing decision are:

1. Sales volume.

2. Profit margins.

3. Rate of return on Investment.

4. Trade margins.

5. Advertisement and sales promotion.

6. Production image.

7. New product development.

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Pricing strategy determines the firms position in the market vis-à-vis its competitors.

Marketing effectiveness of pricing policy and strategy should not suffer merely on account of

cost and financial criteria.

Coming to the pricing of soft drinks (bottled). It is not possible to get the correct information

regarding the criteria used for price fixing on account of its secret nature. The retail price

charged in the market for various years for flavor non-flavor.

YearPrice(Rs.)/Bottle

1993 5.00

1994 5.50

1995 6.00

1996 6.50

1997 7.00

1998 8.00

1999 9.00

2000 9.00

2001 7.00

2002 8.00

2003

2004

2005

2006

8.00

8.50

8.00

10.00

2007

2008

8.00

8.00

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MERCHANDISING

Merchandising is the different between a sale and missed opportunities. It is required to make

the trademark visible and attractive at the point of sale (pos.). This is because the consumer's

attention is divided between different brands. Therefore in-store merchandising is one of the

many strategic responses that FMCG companies must develop to stay ahead of their

competitors.

Principles of Merchandising:

1) Location: Make sure products and equipment are in the best selling areas of the

business location.

2) Inventory Management: The amount of space in each outlet should reflect the

current market share.

3) Package Positioning: Make sure products are easily accessible for the consumer to

purchase. Heavier packages should be placed on the lower shelves.

4) Stock Rotation: When restocking shelves, bring older product to the front and pace

fresh product at the back.

5) Brand Order: The brands should be placed in a specific order so as to render different

brands one after another so as to give consumer different choices at once.

6) Point of Purchase: Materials that help consumers easily find products and illustrate

current promotions and savings.

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7) Pricing: All point-of-purchase materials contain a price message and individual

packages should convey what the item costs.

8) Housekeeping: The areas that present our products should be neat, clean and tidy at

all times.

9) Facing all the Labels: Turn cans of bottles so that all the labels are facing the same

way. This enhances product presentation, which creates impulse purchases.

a) The Corporate Block Set: The prescribed way to lay out the display so that

company places all packages together in brand order.

Key Fundamentals of Merchandising:

1. Impulse purchases: Approximately 70% of Coca-Cola beverage purchases are impulse

purchases. To encourage impulse purchasing, it is considered to create a situation in

which consumers will want to purchase something they did not intend to purchase

when they entered the store.

2. Trademark recognition: The Coca-Cola trademark is the most recognized in the world

and this trademark is located on all the merchandising elements.

3. Expandable consumption: Expandable consumption means that the consumption or

usage of products increases with the amount of product purchases. The more a

consumer buys, that person will consume.

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MARKETING MIX

1. Pepsi Sales Club

This club is for retailers. In this approach retails are given some points once in a month

depending upon how they are using the display material provided by the company to them.

This material consists of Fridges, DPS boards, Glow sign boards, Display bottles (500 ml, 1 ltr.

etc) Stands, Paintings, Racks, Posters etc. Depending upon these, retailers are rewarded by

certain gifts from the company.

The retailers are participating in these schemes very curiously. But few of the retailers found

furious and angry because they had lost the points because of miscommunication or lack of

guidance. Therefore they needed some kind of guidance from the company. It would be a

better idea that our salesman who are distributing the beverages to the retailers can be

equipped by the appropriate training so that he can guide the retailers about how to use their

display material to 100% of their strength and able to tell about the new schemes convincingly.

2. Schemes

PepsiCo India comes out with the schemes on their different products many times in the year.

Most of these schemes are made to benefit the retailers. Some of the schemes are as follows:

1 bottle of 2 lt. free with 2 ltr. Carton pack.

2 bottle of 500 ml free with one 500 ml carton pack.

2 bottle of Pepsi blue 500 ml free with one 500 ml bottle pack of Pepsi blue.

12 tetra packets of tetra slice orange free with one tetra pack of slice orange.

6 tetra packets of tetra slice mango free with one tetra pack of slice mango.

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These schemes keep on changing depending upon the stock. Beverages companies are giving

these schemes despite of acute shortage of soft drink segment to meet the competition, to

make sure the availability their brands and sometimes to satisfy and benefit the retailers and

the end consumers.

3. Advertising

Through the consumers survey it has been proved that the T.V. commercials and signage’s

affect the consumer buying behavior by approximately 80%. May be therefore only PepsiCo is

investing huge finances in the T.V. commercials and other signages, big names of Indian film

industries and sports heroes are being proposed to become the brand promoters and brand

ambassadors. Sachin Tendulkar, Amitabh Bachhan, Karina Kapoor and more are being offered

huge amount for carrying out the promotions. Pepsi’s T.V. advertisement in which Sachin

Tendulkar whistles at the end has maximum recall value. The latest youth icon Mahindra Singh

Dhoni is promoting Pepsi as a “Youngistaan”drink.The latest slogan”Ye Hai Youngistaan Meri

Jaan” is very popular. The other modes of advertisement are following:

Television Commercials

Posters

Display Sign Boards

Glow Sign Boards

Date Calendars

Radio Commercials

Hoardings

Cinema Hall Tickets

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4. Promotion through Restaurant and Cinema Hall Holdings

PepsiCo is tying up with different chains of restaurants and fast food centers like Pizza Hut to

promote the Pepsi and its other brands like Miranda, Mountain Dew etc. These restaurants are

authorized to keep and use the merchandising assets of Pepsi. Usually these kinds of

restaurants and fast food chains are in contract with the PepsiCo so that they cannot promote

any other brand. In return, either they get some share of profit from PepsiCo or some other

kind of benefits from Pepsi.

5. Merchandising assets

PepsiCo also try to promote their brands by providing their retailers and dealers some display

items. Some of them are as follows:

Fridges

Stands

Racks

Air Hangers

Display Bottles

PepsiCo provide the above things to the retailers to use them in promoting companies brands

and products, and provide refrigerators to the retailers in the hope that these retailers only

use these assets in promoting and keeping available all time the PepsiCo’s products. But it is

not true in most of the cases. Retailers usually use these assets of one company in such a way

that it benefits another company. They usually store both soft drink brands (Pepsi and Coke) ,

other items like Paneer, Butter, milk, Chocolates etc. Sometimes they do it unknowingly to

meet out their requirements and sometimes they do it knowingly.

Some of the deficiencies of the Company that promotes the retailers to do so are:

a) To conserve space and electricity in their shop.

b) To show jealous to opposite brand so that they also provide these assets.

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c) Irregularity of the salesman to the retailer shop.

BRANDING

Brand image is defined as the set of association linked to the brand that consumers hold in

memory. Positive brand image is associated with consumer loyalty consumer beliefs about

positives and value, and a willingness to search for the brand. Advertising plays an important

role in establishing a favorable brand image.

In this chapter, we would enumerate the image associations for Pepsi and Sprite. Not to say

the least, Pepsi always ridiculed the coke strategies of brand promotions. Starting from

“Nothing official about it” to “eat cricket sleep cricket, drink Pepsi”. The most recent and

featuring the look- alike of Hrithik Roshan- the latest Hindi movie heartthrob – head also run

into trouble waters with coke. Well then internationally coke always ignored Pepsi. They have

gained over such a campaign too. But if the statistics in India is any scale for them, this

strategy has not worked for them in India. The Coca-Cola stable has therefore launched their

internationally renowned sprite- lemon drinks – in India aiming Jibes at Pepsi. Their punch line

saying “Don’t so for what’s shown to you, use your common sense – sprite bhujayee only

pyass ---- baki sab bakwaas.

Well these jibes against Pepsi were an instant hit and sprite derived considerable mileage out

of it through good re- call for the responders.

The brand image associated with Pepsi:

In the last chapter we discussed about the users image association of the brand. There we

would do the same directly from the point of view of the brand owner. As mentioned earlier

advertising plays an important role in establishing a favorable brand image. The various

advertisements brought out are Pepsi like.

Celebrity endorsement

Contemporary music endorsement

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Lifestyle endorsement

At large Pepsi ad’s always projected on the entertainment factor. ‘Connecting to basal youth

movement and needs is what makes a brand meaningful to your people” says the vice

president international marketing of Pepsi, Mr. Ron Coughlin.

The peppy youths of the Pepsi cops to associate themselves with these celebrities, music

lifestyles (MTV) and their favorite sports stars. Pepsi uses the celebrity advertisements as

testimonials. That is the celebrity – an actor or sportsman or a musician- has personally used

the product or service and is in a position to attest to its puerility, then he or she may give a

testimonial carting its benefits.

Thus the image projected by Pepsi is that attracting the generation ‘X’ pleases refers

characteristics of generation Xerox from the previous chapter’s user responses. The generation

Xerox is not big spends at the same time. They find it extremely difficult to settle on their job

and such. The pleasure of this segment of people is life like music and sincerity are their likes.

The project of the Pepsi ads is directly aimed at this segment of people. But then they have a

strategy to bring the generation of these generations Xerox. That is the people at Pepsi call the

generation next. The overtly technology obsessed generation. Their ad perpetuating the

generation next companies has also hit the India successes

In the care of Pepsi brand has been able to hold on the age between 14 to 32 on a trendy

basis, whereas the rest upward link of the customer segment doesn't it on a utilitarian basis.

The range at which the people buy it as trendy or utilitarian also changes. From the age of 14

as it go upwards they may be to reduce these phenomena, MTV was reaped into advertise/

associate the Pepsi brand.

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This is contrary to the phenomena Pepsi has experienced in other parts of world. That is

because the product was in the mind of the body boomers quiet their youth. Whereas in India

the situation is different. The mind set was on a fire when there were no Pepsi and coke. This

is evident by their opinion about the other brands, which is available in India. That is ThumsUp

and Campa Cola. These brands still have a top-of- the mind recall in this generation. Therefore

though the fresh campaign like the along with MTV and slogans like “Ye Hai Youngistaan Meri

Jaan”, would be to change this situation to pepsi

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RESEARCH METHODOLOGY

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

understand as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them.

It is necessary for the researcher to know not only the research methods but also the

methodology. Researchers not only need to know which of these methods or techniques, are

relevant and which are not, and what would they mean and indicate and why.

Researchers also need to understand the assumptions underlying various techniques

and they need to know the criteria by which they can decide that certain techniques and

procedures will be applicable to certain problems and others will not. All this means that it is

necessary for the researcher to design his methodology for his problem as the same may differ

from problem to problem.

Quite frequently these days’ people talk of research, both in academic institutions and

outside. Several research studies are undertaken and accomplished year after year. But in

most cases very little attention is paid to an important dimension relating to research, namely

that of research methodology. The result is that much of research, particularly in social

sciences, contains endless word - spinning and too many quotations. Thus a great deal of

research tends to be futile. It may be noted, in context of planning and development that the

significance of research lays in its quality and not in quantity. The need, therefore, is for those

concerned with research to pay due attention to designing and adhering to the appropriate

methodology throughout for improving the quality of research. The methodology many differ

from problem to problem, yet the basic approach towards research remain the same.

The purpose of methodology section in the report making is to describe the research

process that is followed while doing the main part. The research design plays a pivotal role in

the quality and content of the data in making of any project report. The type of research

design chosen is seen to have a bearing on all the aspects of report writing.

52 | P a g e UIM-MBA (2009-11)

The research design undertaken for the study was an exploratory one. The reasons for using

an exploratory research method were to obtain qualitative data and also since the nature of

study is as such that it required the exploration of various aspects within and outside the

company. This method also gave the officials interviewed the utmost freedom in responding

and was highly contributory in getting incisive information.

In order to carry out a well researched analysis efforts were taken to collect enough

information about both the companies. For this purpose various primary and secondary

sources were used. This would however include the research design, the sampling procedure,

and the data collection method. This section is perhaps difficult to write as it would also

involve some technical terms and may be much of the audience will not be able to understand

the terminology used.

In our summer training report the main emphasis has been given on the collection of

data through the questionnaires or the survey sheets.

The process of data collection has been conducted by Surveys. This method of data

collection is very useful in extensive enquiries.

The data has then been tabulated and analyzed and the results are been shown. The final step

is the Report Generation, which is the main motive of the summer training and a significant

process of the MBA curriculum.

The methodology followed by the researcher, during the preparation of the report was:

Primary Data

Secondary Data

Personal Visits

PRIMARY DATA-Primary data is that kind of data which is collected by the investigator

himself for the purpose of the specific study. The data such collected is original in

character. The advantage of this method of collection is the authentic. A Set Of Questions

53 | P a g e UIM-MBA (2009-11)

Were Put Together In The Form Of Questionnaire With 17 Questions. The method of

sampling was the convenience method. The population size was of 200.

SECONDRY DATA-When an investigator uses the data that has been already collected by

others is called secondary data. The secondary data could be collected from Journals,

Reports, and various publications. The advantages of the secondary data can be –It is

economical, both in terms of money and time spent. I also did the same and collected

secondary data from various internet sites like Pepsiindia.com, cocacola.com and many

more. The researcher of the report also visited various libraries for collection of the

introduction part

PERSONAL VISITS-As a part of the analysis, it was necessary to visit the wholesalers and

retailers of different areas in Lucknow. As it would always help me knowing the nature of

respondents in different areas.

SWOT ANALYSIS

54 | P a g e UIM-MBA (2009-11)

STRENGTHS

DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The

network is formed on the basis of the time of consumption and the amount of sales yielded by

a particular customer in one transaction. It has a distribution network consisting of a number

of efficient salesmen, 10, 00,000 retail outlets and 8000 distributors. The distribution fleet

includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that

can navigate through narrow alleyways of Indian cities and trademarked tricycles and

pushcarts.

STRONG BRANDS: The products produced and marketed by the Company have a strong

brand image. People all around the world recognize the brands marketed by the Company.

Strong brand names like Pepsi, Miranda, Mountain Dew, 7 UP and Slice add up to the brand

name of the PepsiCo Company as a whole.

LOW COST OF OPERATIONS: The production, marketing and distribution systems are very

efficient due to forward planning and maintenance of consistency of operations which

minimizes wastage of both time and resources leads to lowering of costs.

WEAKNESSES

PROMOTIONAL STRATEGIES: PepsiCo is less concentrated on its promotional assets and

equipments while on the other hand Coke is concentrating more and more over this and

winning the trust and confidence of the retailers and pushing them to promote Coke products

rather than PepsiCo products.

MARKET SHARE: PepsiCo is far behind over the comparison of the market shares of the two

soft-drink giants. PepsiCo is holding only 42% shares while Coke is leading with 58% market

shares and having a good reputation in market.

LOW EXPORT LEVELS: The brands produced by the company are brands produced worldwide

thereby making the export levels very low. In India, there exists a major controversy

concerning pesticides and other harmful chemicals in bottled products including Pepsi.

55 | P a g e UIM-MBA (2009-11)

In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in

New Delhi, said aerated waters produced by soft drinks manufacturers in India, including

Multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT,

Malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the

immune system. Therefore, people abroad, are apprehensive about PepsiCo products from

India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE

ECONOMIES OF SCALE: The Company’s operations are carried out on a small scale and due

to Government restrictions and ‘red-tapism’, the Company finds it very difficult to invest in

technological advancements and achieve economies of scale.

OPPORTUNITY

GROWING MARKET: The PepsiCo Company has a good chance to expand more and attain

greater no of market shares with the rapidly growing market which is expanding at the rate of

20% every year. It can give big jerk to its major competitor Coke by concentrating over its

marketing and promotional strategies and by developing sound relation with its distributors,

retailers, etc.

LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very

high as compared to any other soft drink manufacturer. PepsiCo India claims a 42 per cent

share of the soft drinks market; this includes a 37 per cent share of the Pepsi market. Other

products account for 5 per cent market share, chiefly led by Miranda. The company appointed

50,000 new outlets in the first two months of this year, as part of its plans to cover ten lakh

outlets for the coming summer season and this also covered 3,500 new villages.

EXPORT POTENTIAL: The Company can come up with new products which are not

manufactured abroad, like Slice etc and export them to foreign nations. It can come up with

strategies to eliminate apprehension from the minds of the people towards the PepsiCo

products produced in India so that there will be a considerable amount of exports and it is yet

56 | P a g e UIM-MBA (2009-11)

another opportunity to broaden future prospects and cater to the global markets rather than

just domestic market.

HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase

in the per capita income thereby causing an increase in disposable income. Unlike olden times,

people now have the power of buying goods of their choice without having to worry much

about the flow of their income. The beverage industry can take advantage of such a situation

and enhance their sales.

THREATS

IMPORTS: As India is developing at a fast pace, the per capita income has increased over the

years and a majority of the people are educated, the export levels have gone high. People

understand trade to a large extent and the demand for foreign goods has increased over the

years. If consumers shift onto imported beverages rather than have beverages manufactured

within the country, it could pose a threat to the Indian beverage industry as a whole in turn

affecting the sales of the Company.

TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of

regulations at each stage on the consequence from production to consumption. When a

license is issued, the production capacity is mentioned on the license and every time the

production capacity needs to be increased, the license poses a problem. Renewing or updating

a license every now and then is difficult. Therefore, this can limit the growth of the Company

and pose problems.

SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its

problems: Low per capita disposable incomes that is half the urban disposable income; large

number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal

consumption linked to harvests and festivals and special occasions; poor roads; power

FINDING & ANALYSIS OF SURVEY FORM

Market Shares in India:

PepsiCo - 42

57 | P a g e UIM-MBA (2009-11)

Coca-Cola - 58

Market Shares in India (Brand Wise):

Pepsi - 51

Coke - 49

Market Shares of Companies in Lucknow City:

Pepsi - 49

Coca-Cola - 51

Total Number of Outlets Surveyed - 175

Channels:

Grocery - 70

Convenience - 55

Eatery - 23

Leisure - 25

Canteens - 2

Presence of Brands in different Outlets:

Outlets with PepsiCo’s stock only - 21

Outlets with Coca-Cola stock only - 25

Outlets with Both - 129

Daily Sales (in crates):

0-2 - 15%

3-5 - 44%

58 | P a g e UIM-MBA (2009-11)

6-10 - 25%

More than 10 - 16%

Cooling Equipments:

Pepsi - 38

Coke - 70

Own - 65

Both - 12

Glow Sign:

Pepsi - 05

Coke - 08

Both - 03

None - 159

Flex Board:

Pepsi - 15

Coke - 04

Both - 02

None - 154

Paintings:

Pepsi - 04

Coke - 03

59 | P a g e UIM-MBA (2009-11)

Both - 01

None - 168

Assets:

Pepsi - 35

Coke - 40

Both - 15

None - 101

ANALYSIS

MARKET SHARES OF BOTH COMPANIES IN INDIA

60 | P a g e UIM-MBA (2009-11)

PEPSI 42

COKE 58

PEPSI,42

COKE, 58

SHARES IN INDIA

PEPSICOKE

PEPSI IS HAVING 42% SHARES WHILE COKE HAVE 58% SHARES PROVING IT TO

BE A WORLD LEADER IN SOFT DRINK. PEPSI IS FAR BEHIND IN COMPARISION

TO COKE.

MARKET SHARES OF BRANDS PEPSI AND COKE

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PEPSI 48

COKE 52

PEPSI, 48COKE, 52

Market Shares

PEPSICOKE

PEPSI OF PEPSICO IS HAVING 48% MARKET SHARES WHILE COKE OF COCA-COLA

IS HAVING 52% SHARES. THIS SHOWS THAT BOTH BRANDS ARE NEARLY EQUAL

IN MARKET SHARES.

62 | P a g e UIM-MBA (2009-11)

MARKET SHARES OF PEPSI AND COKE IN LUCKNOW

PEPSI 49

COKE 51

PEPSI,49%COKE,51%

Sales

PEPSICOKE

PEPSI is the leader in soft drink market in Lucknow City with 49% of market

share followed by its rival COKE (51%).

CHANNELS OF SALE

TOTAL OUTLETS : 175

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GROCERY 70

CONVENIENCE 55

EATERY 30

LEISURE 25

CANTEENS 2

GROCERY,70

CONVENIENCE,55

EATERY,30

LEISURE,25

CANTEEN,2

Sales

GROCERYCONVENIENCEEATERYLEISURECANTEENS

The main channels of sale are grocery stores. 70 grocery stores were holding the stock of

soft drinks. Lagging behind are Convenience with 55 like clubs, Restaurants, hot spots,

Cyber cafes. Then Eatery with 30 likes small dhabas, eatery shops. Then Leisure ones with

25 like tea stalls, juice corners etc. Last one is canteens with 2. This shows that retailers

prefer to stock soft drinks as their supporting sale element.

BRANDS COVERED BY DIFFERENT OUTLETS

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TOTAL OUTLETS 175

OUTLETS WITH PEPSI ONLY 29

OULTETS WITH COKE ONLY 25

OUTLETS WITH BOTH 129

PEPSI,29

COKE,25

BOTH,129

Sales

PEPSICOKEBOTH

Mostly all the outlets have the stocks of both companies. Outlets with only Pepsi’s stock are 29

and coke is (25).

65 | P a g e UIM-MBA (2009-11)

DAILY SALES OF RETAILERS (in crates)

0-2 Crates 15%

3-5 Crates 44%

6-10 Crates 25 %

More than 10 16%

15%

44%

25%

16%

Sales

Crates 0-2Crates 3-5Crates 6-10More than 10

Maximum no of retailers have a daily sales between 3-5 crates which is 44% while 6-

10 crates are sold only by 25 % of retailers and retailers who have daily sales of more

than 10 crates who have very high sales are 16 %.

COOLING EQUIPMENTS PROVIDED BY BOTH COMPANIES

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PEPSI 38

COKE 70

OWN 65

BOTH 12

PEPSI,38

COKE,70

OWN,65

BOTH,12

Sales

PEPSICOKEOWNBOTH

COKE HAS PROVIDED HIGHEST NO OF COOLING EQUIPMENTS (70) WHILE PEPSI HAVE ONLY 38

COOLING EQUIPMENTS IN THE CITY AND 65 OUTLETS HAVE THEIR OWN COOLING

EQUIPMENTS MAY BE DUE TO LESS SATISFACTION FROM THE COMPANY, HIGHER COST OF

FRIDGES OR ALREADY HAVING THEIR OWN COOLING EQUIPMENT.

BOTTLES OF PEPSI AND COKE IN FRIDGES

PEPSI 20%

67 | P a g e UIM-MBA (2009-11)

COKE 38%

OWN 35%

BOTH 07%

PEPSI,20%

COKE,38%

OWN,35%

BOTH,7%

Sales

PEPSICOKEOWNBOTH

PepsiCo’s refrigerator are not being used to optimum by the retailers in promoting PepsiCo’s

product as 20% bottles of the Coca-Cola were found in PepsiCo’s fridges.

GLOW SIGNS OF BOTH COMPANIES IN THE CITY

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PEPSI 05

COKE 08

BOTH 03

NONE 159

PEPSI,5

COKE,8

BOTH,3

NONE,159

Sales

PEPSICOKEBOTHNONE

COKE HAVE LARGER NUMBER OF GLOWSIGNS IN THE CITY IN COMPARISION TO PEPSI THAT

MEANS COKE IS MORE CONCENTRATED OVER PROMOTIONAL SALES AND SATISFYING THEIR

RETAILERS. BUT STILL THEIR ARE 159 OUTLETS WHO DON’T HAVE ANY GLOW SIGN BOARD.

FLEX BOARD OF BOTH COMPANIES IN THE CITY

PEPSI 15

69 | P a g e UIM-MBA (2009-11)

COKE 04

BOTH 02

NONE 154

PEPSI,15COKE,4

BOTH,2

NONE,154

Sales

PEPSICOKEBOTHNONE

PEPSI HAVE LARGER NUMBER OF FLEX BOARD IN THE CITY IN COMPARISION TO COKE THAT

MEANS PEPSI IS MORE CONCENTRATED OVER PROMOTIONAL SALES AND SATISFYING THEIR

REATAILERS WHILE STILL THERE ARE 154 OUTLETS WHO DON’T HAVE ANY FLEX BOARD.

PAINTINGS OF BOTH COMPANIES IN THE CITY

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PEPSI 04

COKE 03

BOTH 01

NONE 168

PEPSI,4COKE,3

BOTH,1

NONE,168

Sales

PEPSICOKEBOTHNONE

PEPSI HAS GREATER NUMBER OF PAINTINGS IN COMPARISION TO COKE BUT MOST OF

PAINTINGS DONE BY PEPSI WERE VERY OLD. COKE’S PAINTINGS ARE INCREASING

CONTINOUSLY IN NUMBER WHICH SHOWS THAT IT IS MORE CONCENTRATED OVER ITS

PROMOTION.

ASSETS PROVIDED BY BOTH COMPANIES IN THE CITY

71 | P a g e UIM-MBA (2009-11)

PEPSI 35

COKE 40

BOTH 15

NONE 101

PEPSI,35

COKE,40

BOTH,15

NONE,101

Sales

PEPSICOKEBOTHNONE

PEPSI HAVE ONLY 35 ASSETS (RACKS, AIR HANGER, STAND) IN THE CITY WHILE COKE HAVE 40.

THIS SHOWS THAT COKE IS CONCENTRATING MORE OVER ITS PROMOTION AND FORCING THE

RETAILERS TO SELL COKE’S PRODUCT ONLY TO CAPTURE THE MARKET.

PROBLEMS

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There are many different reasons for the low rate of use of the merchandising assets of the

company. Few of them are as follows:

Shortage: Usually during the peak season when the retailer requires most, there is shortage of

different products and packing in the delivery van. And in case there is no shortage, then there

are still many places left where the delivery van is unable to reach or delivery man wishes not

to go there.

Empty Bottles: Coca-Cola beverages India is picking up empty bottles of PepsiCo brands while

PepsiCo is not doing so. This is creating huge shortage of availability of PepsiCo stock in the

market. Since at one side when PepsiCo’s salesman or delivery van reach the retailer shops,

they don’t find enough empty bottles of Pepsi and they do not exchange the available bottles

of Coca-Cola due to which PepsiCo stock starts getting blocked.

Irregularity of the salesman: Sometimes the sales men don’t visit each shop on their route

regularly because of no. of reasons:

There are too many shops on each route and it is quite difficult for him to entertain all

the shops properly.

Sometimes he got out of stock of certain products in the midway due to high demand

of those brands, and he comes back.

Sometimes he does not go on some routes thinking that the other sales person or van

must have covered that route as a result no one reaches there and the competitor gets

the benefit.

Sometimes because of the long routes he ran out of time because after 8 PM – 9 PM,

most shops are likely to get closed.

Unfulfilled Promises of the Company Professionals : Sometimes retailers asks the salesman and

company professionals which are visiting them for different merchandising assets about which

these people cannot do anything but they make false promises to those retailers because of

which retailers gets annoyed and try to reduce the sales of Pepsi and its other brands.

73 | P a g e UIM-MBA (2009-11)

Fewer visits of the Company Professionals: Number of visits, which the company professionals

make to the market, is very less. Some retailers even complained that since the day they have

started the business they haven’t seen anybody from the company or no one came to hear

their complaints.

Trust: Number of Retailers found complaining about the salesman that they don’t’ tell them

about the schemes and other offers. In other words, they do not have trust on the

salesperson.

Schemes: Many of the retailers found complaining about the schemes. Actually they found the

schemes existing but they are not guided or told about the schemes that creates distrust

towards company.

74 | P a g e UIM-MBA (2009-11)

CONCLUSION

After conducting the research I found that there are two categories of retailers. Out of the two

first one is of those retailers, who just want to increase their assets, for them the sale doesn’t

matter according to them they can only increase the sale if company will invest in them or in

their shops. These types of retailers will only work positively for the company, which invest in

them hugely. And if at any moment they found that company has lost or lowered their interest

in them, they will again shift to other major player or the leading ones.

Other kinds of retailers are those who are more bothered about working hard and build their

reputation in the market. These types of retailers are using the merchandising assets to their

optimum level. And sometimes, if they are unable to do so it because of the irregularity of the

sales man (when the salesman on the route gets changed) or because of the shortage of

different products/packaging.

There is requirement of the continuous visit of the company professionals to these retailers so

that they can understand the market and suggest changes accordingly. Despite of these entire

salesman and other company professionals who visit these retailers must not do the false

promises. Due to this, retailers lose their confidence towards the company and start working

negatively.

Company must concentrate towards increasing its promotional equipments and assets so that

it can mark its presence easily and to tackle the threats from its competitor.

There is also the need of transparent schemes and marketing mix that the retailers can

understood more properly.

75 | P a g e UIM-MBA (2009-11)

SUGGESTIONS AND RECOMMENDATIONS

Company should do something to meet its demand in the market. At Present, there is

acute shortage of Pepsi 2 ltr Family pack, 200 ml and tin pack. Because of this shortage

Pepsi is not even loosing the present market share but even providing way to the rivals.

For this either plant size can be extended or Company should concentrate more over

its most selling brands.

Either Pepsi should start picking up the Coca-Cola bottles and can exchange them with

Coca-Cola later on or they must reach the market before the Coca-Cola delivery van to

prevent blockade of PepsiCo stock.

Since the market capacity is huge, Salesman needs time at every retailer to satisfy him

and tell him about the different products, packaging, schemes etc. it’s quite difficult for

him to visit every shop on his route every day. Therefore, there is necessity to divide his

route into two parts and increase the total no. of routes.

Sometimes sales man for different routes keeps on changing very frequently (in a very

short period). This should be prohibited because every sales man needs time to get

adjusted to a particular route and even to know all the shops on the route.

A proper chart should be maintained on everyday sales of each route depending on this

route van should be shipped accordingly. So that the sales man must not gets out of

stock while on the route.

Sales man is working for 15 to 16 hours regularly during the peak season at very low

reimbursement which may sometimes, kills his interest. Therefore there is need of

fixing up his working hours. Delivery van should be ready when he comes into the

depot in the morning. There should be different laborers for shipping or de-shipping

the delivery vans.

76 | P a g e UIM-MBA (2009-11)

Company professionals must not take the false promises about the merchandising

assets with the retailers. These retailers must get the proper information and guidance

about the company policies on the merchandising assets. So that there should be no

generation of frustration.

Though the Glow Sign and Display Sign Boards are being used by the retailers

satisfyingly but still there is need of the guidance for the retailers.

Schemes should be transparent and made clear to all the retailers.

As maximum no. of retailers are selling around 3 to 5 crates daily. Our Schemes should

be revolving around this percentage only. And while formatting different, schemes

should be kept in mind.

For this salesman can be provided with some kind of guidance/training, so that they

can clear the queries of the customers/retailers about the different schemes/proposals.

Retailer benefit schemes, which the company launches time by time during the whole

year, must be made clear to all the retailers.

Customers can be informed about the schemes through the brochures. Brochures can

be distributed to all the retailers for the schemes that barely being launched once in a

year. And for daily schemes which get change on daily basis and which depends on the

stock availability providing details about the day’s schemes/ after a paper/ pamphlet

on different products can be sticked to the delivery van signed by the TDM or ASM or

anybody authorized. So that every retailer if needed/required can verify himself about

the daily schemes.

77 | P a g e UIM-MBA (2009-11)

Company professionals should visit the field more regularly and they must try to visit

every retailer at least once in a month.

A proper trust and relationship building process is required with the retailers, which

need to be worked on.

78 | P a g e UIM-MBA (2009-11)

LIMITATIONS

Though I have put in all my earnest efforts in attempt to penetrate deep into the project and I

have received individual help from my project guide who was very helpful and cooperative in

this regard. I would still like to list down certain limitation under which the study was

conducted.

(1) Time was one of the major constraints that affected the study, as this was the topic that

required in depth and extensive research.

(2) There might be possibility of inaccuracy in research finding due to inadequate available

data.

(3) The responses from the respondent’s side were another factor which I believe has certain

effect in my research finding since it may be biased.

(4) As I am a student of MBA certain technical details of the product were beyond my

understanding limits.

(5) Though my guide gave his valuable time to me, shares the things with me but I still think

that this area can be further explored.

79 | P a g e UIM-MBA (2009-11)

BIBLIOGRAPHY

BOOKS AND MAGAZINES

Kothari, C.R., (2006) “ Research Methodology”, 6th Edition, Vishwa Publication

William G. Richmond (2007) “Research Methodology”, 7th Edition, Thomson Groups

Kotler, Phillip (2006), Marketing Management, 12th Edition, Pearson Education

Armstrong & Kotler (2007) “Marketing and Introduction”, 7th Revised Edition, Pierson Education

Ramaswamy, V.S. (2004) “Marketing Management”, 3rd Edition, Macmillan Groups

JOURNALS

Mukherjee, Kaushik “Coca-Cola’s Branding Strategies in India”

ICFAI Journals: Volume V, Number 1, March 2008

Dr. Jayant Sonwalker, Geeta Neema “A study of factors responsible for brand preferences in

FMCG products among college students”

IMS Journals: Volume 5, Number 1, Jan-Jun 2008

Madhavaiah, C. , Durga Rao, S., “Defining Relationship Marketing: A review of research”

Asia-Pacific Journals: Volume 3, Number 2, Jul-Dec 2007

WEBSITES

www.pepsiindia.com

www.pepsizone.com

www.pepsico.com

www.cocacola.com

www.hindustantimes.com

80 | P a g e UIM-MBA (2009-11)

APPENDIX

QUESTIONAIRE

This survey is being conducted solely for academic purpose only.

The findings shall be used for the above purpose only.

NAME OF OUTLET: ------------------------------------

ADDRESS: -----------------------------------------------

NOTE: (Given below are some questions on which your opinion is needed. Kindly answer the question

by ticking in the right box.)

=============================================================================

1. Which type of shop do you have?

a) Grocery b) Convenience c) Eatery d) Leisure e) Canteen

2. Which Company’s stock do you sale?

a) Pepsi b) Coke c) Both d) Other

3. Approximately how many crates do you sale daily?

a) 0-3 b) 4-8 c) 9-12 d) 13-15

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4. Out of Pepsi and Coke whose Refrigerator do you have?

a) Pepsi b) Coke c) Own d) Both

5. What are the reasons that you are not using the refrigerator/Ice Box to its full Strength?

a) Shortage b) Empty Problem c) Irregularity of the Sales man d) Other

6. Out of Pepsi and Coke which Company’s Glow Sign Board do you have?

a) Pepsi b) Coke c) Both d) None

7. Out of Pepsi and Coke which Company’s Flex Board do you have?

a) Pepsi b) Coke c) Both d) None

8. Out of Pepsi and Coke which Company’s Painting do you have in your shop?

a) Pepsi b) Coke c) Both d) None

9. Out of Pepsi and Coke which Company’s assets do you own?

a) Pepsi b) Coke c) Both d) None

10. How do you get the display material from the Company?

a) Schemes b) Gifts c) Sharing/ draft d) Other

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