SUMMER TRAININGPROJECT REPORT

ON

DISTRIBUTION STRATEGY OF PEPSIVARUN BEVERAGES LTD

PEPSICO(hajipur)

Submitted for the partial fulfillment of the requirement for the awardOf

IIMT MANAGEMENT COLLEGE GANGA NAGER MEERUT.

(2011-2013)

UNDER THE GUIDENCE OF :- SUBMITTED BY :- Dr. Prashant ghosh sonu kumar. (Director ) MBA 3rd symester +919808470496

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CONTENT PAGE NO.Project Detail 1

Certificate 2

Preface 3

Acknowledgement 4

Observations 5

Executive Summary 6

Introduction 7 to 9

Company Profile 10 to 17

Overview PepsiCo 18 to 19

PepsiCo Overcame Competition 20 to 24

Business Segment 25 to 35

Key Element of Trade 36 to 43

Promotion 44 to 47

Distribution Strategy 48 to 54

Research Methodology 55 to 56

Data Analysis From Retailer and Distributor 57 to 91

Analysis of Finding and Observation 92

SWOT Analysis 93 to 94

Conclusion 95 to 96

Limitation 97 to 98

Recommendation 99 to 101

Bibliography 102

Annexure 103 to 108

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TO WHOM IT MAY CONCERN

This is to certify that …………………………………. student of MBA course (2011-2013) IIMT MANAGEMENT COLLEGE with dual specialization in “MARKETING & HR” has satisfactorily completed the summer research project on “DISTRIBUTION STRATEGY OF PEPSI”. This study is done under the guidance of the undersigned for partial fulfillment for the award of MBA. I wisher all the best for bright future ahead.

Mentor:-

…………………………

PREFACE

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Marketing plays import role in today’s business scenario in consumer product Company, there is such a high competition in the market. Summer project in MBA program is providing job experience. In The summer program we gain academic knowledge as well as corporate culture.

The emphasis in the project is providing the study and an insight into Indian FMCG Business Scenario. The Summer Project is designed to provide participation of MBA program as on the job experience. This has given a chance to try and apply the academic knowledge and gain insight into corporate culture. This helps in developing decision-making abilities and emphasizes on active participation by the student.

We undertook our Project in Varun Beverages, a leading Bottler and Marketing partner of the Pepsi Foods. During the training, we had worked on the project “Distribution strategy of PEPSI in HAJIPUR BIHAR.”

We gained valuable experience & knowledge during the survey. The Project consists of our findings customer behave relate goods market search after data analysis & then SWOT analysis & conclusions were drawn and finally recommendations were put forward.

ACKNOWLEDGEMENT

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I owe my gratitude to many people who helped and supported me during the

entire Summer Training.

My sincere thanks to Mr.Prashant Dev Yadav the Guide of the project, for

initiating and guiding the project with attention and care. He/ She have

always been available for me to put me on track from time to time to bring

the project at its present form.

My deep sense of gratitude is due to Mr. Ashvani Sharma, Mr. Amit Sharma

(Marketing Manager , Senior Customer Executive) Of Varun Beverages Ltd.

HAJIPUR BIHAR. for allowing me to carry out the Summer Internship and

this Project at the organization and to be constantly available to me for the

period, for guidance. He/ She also helped me to see the subject of study in

its proper perspective. Thanks and appreciation is also due to the officials,

employees and respondents of Varun Beverages Ltd. Surajpur, Greater

Noida (U.P), for their support.I also thank my Institution and my faculty

members without whom this project would have been a distant reality.

Signature

(SONU KUMAR) Place: HAJIPUR BIHAR

Date:

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Observations:-

To collect order from each and every outlet.

To check visi-cooler with 100% purity.

To see is the soft drink is in Brand Order.

To see every outlet, is the soft drink present in display rack.

To see every outlet visi- cooler will present in prime location or

not.

To visit every outlet in regular basis.

To go every outlet and listen the problems of retailer and

shopkeeper related to visi- cooler and soft drink which is to be

noted in complaint diary.

To see each that each and every outlet worked in better condition.

To see as a Market developer (M.D) every outlet full fills in terms

and conditions with visi-Cooler.

To see as a Market developer (M.D.) if any outlet will not selling

your product than you asked why you are not selling my product.

Then you give advice to outlet.

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EXECUTIVE SUMMARY

The distribution network of PEPSI is well known for its efficiency but company constantly strives for the betterment of their distribution network system. Emphasis of our study was to focus on the customer of company i.e., the retailers.

The Retail Mapping of Greater Noida is an integral step for the assessment, development and betterment of this system. The distribution system not only comprises the movement of the products but also incorporates the merchandising of the product, which is very broad in its purview.

The project incorporates the analysis of the perform of PEPSI and probing into opportunities of increasing the market share in Greater Noida. The entire process had to be in an organized manner in order to deliver meaningful results for the purpose of decision-making. The project was that of market research with surveys and observations as its major phases with the objective of gathering of all important information material for strengthening the position of PEPSI in Greater Noida.

PEPSI boasts of having the maximum market share in the beverage segment in Greater Noida and is in constant process for the betterment of its product performance and customer as well retailer’s satisfaction.

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INTRODUCTION

Modern age is full of competition. Today only way of success is your continuous efforts towards the growing market needs and in satisfying them. It is the marketer job to know what the market speaks i.e. the ever changing needs of the customer through market research & adopt them fruitfully. It is must for all the companies to make policies according to the customers and the govt. Today to succeed for any organization has to target 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 PEPSI and re-entry of COCA-COLA in India in the late 80s when Parley with brands like Thums up, Limca & Gold spot was a clear leader. Coca-Cola took up the product line of parley in 1993-94; today both brands are the Indians favorite soft drinks.

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PepsiCo Inc.

Type Public

Traded as NYSE: PEPS&P 500 Component

Industry Foods, Beverages

Founded North Carolina, U.S. (1965)

Founder(s) Donald Kendall, Herman Lay

Headquarters Purchase, New York, U.S.

Area served Worldwide

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Key people Indra Nooyi(Chairman & CEO)[1]

Products See list of PepsiCo products

Revenue  US$ 66.504 billion (2011)[2]

Operating income  US$ 9.633 billion (2011)[2]

Net income  US$ 6.462 billion (2011)[2]

Total assets  US$ 72.882 billion (2011)[2]

Total equity  US$ 20.899 billion (2011)[2]

Employees 297,000 (2011)[2]

Divisions PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo Europe; PepsiCo Asia, Middle East & Africa

Subsidiaries List of subsidiaries

Website PepsiCo.com

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COMPANY PROFILE-PEPSI CO. (US)

COMPANY PROFILE-PEPSI CO. (US)

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $66.50 billion, over 2, 97,000 employees and total equity $20.899 billion. 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

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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).

PepsiCo 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 invested more 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 coke’s 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.

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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.PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people.

PEPSI – THE INDIAN EXPERINCES

• Pepsi is one of the most well known brands in the world today available in over 200 countries. The company has an extremely positive outlook for India. "Outside North America two of our largest and fastest growing businesses are in India and China, which include more than a third of the world’s population." (PepsiCo’s annual report, 1999)

• This reflects that India holds a central position in Pepsi’s corporate strategy. India is a key market for PepsiCo, and at the same time the company has added value to Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three focus areas – Soft drink concentrate, Snack foods and Vegetable and Food processing

• Faced with the existing policy framework at the time, the company entered the Indian market through a joint venture with Voltas and Punjab Agro Industries. With the introduction of the liberalization policies since 1991, Pepsi took complete control of its operations. The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flown in

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• One of PepsiCo’s key strategies was to develop a completely local management team. Pepsi has 19 company owned factories while their Indian bottling partners own 21

The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official about it’ immediately ring a bell- it’s got to be Pepsi.

The advertisement tag ‘yehi hai right choice baby’ was the first ‘Hinglish’ slogan ever used in the in the Indian market. This slogan proved to be the best suited one for Pepsi and it was a mega hit and at that moment of time. Pepsi in a short span of its operations in India has found a place in the hearts and minds of the Indian consumers. The success has primarily been due to the innovative and passionate Indian team, which has been built over the years. Pepsi is a trendsetter managed and run by Indians, where important decisions are taken locally.

Pepsi started its operations in India in 1989 and since then PepsiCo has set up a fully integrated operation in India viz. Manufacturing, Research & Development, Marketing, Distribution and Franchising- covering fruit/vegetable processing, Exports, and Snack Foods & Beverages. In the mean time Pizza Hut and Frito Lay’s are the examples in this regard only

Pepsi has 40 bottling plants in India, out of which 16 are company owned and 24 are owned by Indian franchisees. One of the major players in franchisee is RKJ Group.

The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra.

It has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India.

This group has brought name and fame to the Pepsi as in all this regions Pepsi is at the commanding position and in the mean this group has

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diversified itself into ice cream, suiting and shirting’s, restaurants, beer plant in Mauritius & edible oil plant in Sri Lanka.

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 an 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:

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Food and Beverages Textiles Information Technology Real Estate Education

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 of Bottling, 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.

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 PepsiCo’s 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

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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 the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions.

MAIN CREDENTIALS

1. VARUN BEVERAGES LIMITED received" GOLD STANDARD AWARD" 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.

3. In 2011, The Brand Trust Report in India included Pepsi in the list of the most trusted brands of the country.

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PepsiCo – The Parent Company

PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's principal businesses include:

Frito-Lay snacks Pepsi-Cola beverages Gatorade sports drinks Tropicana juices Quaker Foods

PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the world’s fifth-largest food and beverage company, with 15 brands – each generating more than $1 billion in annual retail sales. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people.Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo, Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses in the United States and Canada.Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist,

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and Mug Root Beer account for nearly one-third of total soft drink sales in the United States. Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina, which is the number one brand of bottled water in the United States, Dole single-serve juices and Sobs, which offers a wide range of drinks with herbal ingredients. The company also makes and markets North America's best-selling, ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively.

Overview – PepsiCo

The PepsiCo challenge (to keep up with archrival The Coca-Cola Company) never ends for the world's #2 carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. It owns Frito-Lay, the world's #1 maker of snacks such as corn chips (Doritos, Fritos) and potato chips (Lay's, Ruffles). Cola is not the company's only beverage: PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices (licensed) and Lipton ready-to-drink tea (licensed from Unilever). Its Quaker Foods division offers breakfast cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). Wal-Mart is PepsiCo's largest customer, accounts for 9% of sales.

PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks and juice sales help to quench the company's thirst for bottom-line growth. Frito-Lay's salty snacks rule the US market; the snack division accounts for about one-third of company sales.The company announced a major restructuring in 2007, splitting its two business units (Pepsi-Cola North America and PepsiCo International) into three: one for US food, a second for US drinks, and a third for food and drinks abroad. CEO Indra Nooyi said that due to the company's healthy growth in recent years, PepsiCo is approaching a size that can be better managed as three units rather than two.

The split looks like this: PepsiCo Americas Foods includes Frito-Lay North America, Quaker, and the Latin American food and snack businesses; PepsiCo Americas Beverages includes North American beverage sales,

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including Gatorade and Tropicana; and PepsiCo International includes business in the UK, the rest of Europe, Asia, the Middle East, and Africa.

With a saturated soft-drink market, the company continues to try new iterations: In 2007 the company introduced its first vitamin-enhanced water, called Aquafina Alive. It signed a licensing agreement with Ben & Jerry's in 2006 for the sale of Ben & Jerry's milkshakes in the US, as well as a deal with Starbucks for the distribution of the coffee purveyor's Ethos water brand. Hot on the heels of Coke's introduction of Blak, in 2006 Pepsi launched a coffee-flavored cola, named, Pepsi Max Cino, in the UK.

Venturing further into the non-cola category, PepsiCo acquired sparkling juice companies IZZE and Naked Juice in 2006. It also began selling Fuelosophy, a smoothie drink, at organic grocery store chain Whole Foods, and struck a deal to develop products with juice maker Ocean Spray Cranberries.

Bowing to the public's growing concern about childhood obesity, in 2006 Pepsi, along with Coca-Cola, Cadbury Schweppes, and the American Beverage Association agreed to sell only water, unsweetened juice, and low-fat milk to public elementary and middle schools in the US. As for high schools, the agreement calls for no sugary sodas to be sold and one-half of the offered drinks to be water, diet sodas, lemonade, or iced tea. The agreement was facilitated by former president Bill Clinton.

CEO Steve Reinemund stepped down as CEO in 2006 in order to spend more time with his family. His replacement was Indra Nooyi, the company's president and CFO. Indian-born Nooyi, the 11th female CEO of a FORTUNE 500 company, has been instrumental in strategic decisions at the company, such as the acquisition of Tropicana and merger with Quaker Oats.

Shortly after her appointment, Nooyi restructured the top level of power at the company. She appointed John Compton, previously head of the Quaker-Tropicana-Gatorade unit, to the newly created position of CEO for PepsiCo North America, reporting directly to her.

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How PepsiCo overcame Competition

How PepsiCo outgunned Coke:

Losing the cola wars was the best thing that ever happened to Pepsi while Coke was celebrating; PEPSI took over a much larger market.

Pepsi beat Coke in December for the first time in their 108-year rivalry, surpassing its nemesis in market capitalization. The great irony of Pepsi's rise is this: It has never sold more soda than Coke, even today.

"Pepsi's been on fire," notes Robert van Brugge, beverage analyst with Sanford 55Bernstein. Over the past five years its stock has risen more than a third, while Coke's has sunk 30 percent.

Even ten years ago, it was easy to write off PepsiCo (Research) as the loser in the cola wars against Coke (Research): the proof was everywhere. The company's profits trailed those of its rival in Atlanta by 47 percent. Its value in the stock market was less than half of Coca-Cola's. Coke's CEO at the time, Roberto Goizueta, was so sure of his company's dominance that he practically dismissed Pepsi, telling FORTUNE, "As they've become less relevant, I don't need to look at them very much anymore."

PepsiCo turned its cola Waterloo into an opportunity to retrench, regroup, and ultimately outflank its old foe. Losing the cola wars, it turns out, was the best thing that ever happened to Pepsi. It prompted Pepsi's leaders to look outside the confines of their battle with Coke.

A decade ago, Coke offered investors a compelling story: a recession-resistant product inexpensive enough that consumers would buy it in good times and bad, but valued enough that they would willingly pay an extra nickel or so above what no-name brands charged.

What Coke investors didn't envision was that an emerging preference for other soft beverages --water, sports drinks -- would fracture demand. Nor did they see that the business strengths that once applied to cola would take hold across a broadened soft drink and snack-food market -- a market that Pepsi, and not Coke, dominated.

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"They were the first to recognize that the consumer was moving to noncarbonated products, and they innovated aggressively," observes Gary Hemphill of Beverage Marketing.

PepsiCo embraced bottled water and sports drinks much earlier than its rival. Pepsi's Aquafina is the No. 1 water brand, with Coke's Dasani trailing; in sports drinks, Pepsi's Gatorade owns 80 percent of the market while Coke's PowerAde has 15 percent.

Throughout the past five years under CEO Steve Reinemund, the company has deftly moved with every shift in consumer tastes. "He's thinking about what the products should look like in the future," says Victor Dzau, a director of PepsiCo.

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SCA’s

Three major sustainable competitive advantages give PepsiCo a competitive edge as we operate in the global marketplace:

Big muscular brands; Proven ability to innovate and create differentiated products; and Powerful go to market systems.

Build and Born SCA’s:

Hyper competition;

Cost and Quality. Timing and know how. Strongholds. Deep pockets.

Fig: 1Coke: 1886; Pepsi: 1893.

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Strategic Competitive Advantage

Profits from asustained

competitiveadvantage

Time

LaunchExploitation

Counterattack

Profits from aseries of actions

Time

Exploitation

Launch

Counterattack

Firm has already moved to advantage 2

Traditional View

Hypercompetition

Strategic Competitive Advantage

Profits from asustained

competitiveadvantage

Time

LaunchExploitation

Counterattack

Profits from aseries of actions

Time

Exploitation

Launch

Counterattack

Firm has already moved to advantage 2

Traditional View

Hypercompetition

1933: Pepsi struggling to stave off bankruptcy. Dropped price of its 10c, 12 oz. bottle to 5c, making it a better value. Ad jingle “twice as much for a nickel” better known in the US than the Star Spangled Banner.

Fig.2

Pepsi keeps price advantage through 60s and 70s, when Pepsi charged its bottlers 20% less for its concentrate.

With rising ingredient costs, Pepsi could no longer offer twice as much for the same price. So, it raised price to Coke’s level giving it a war chest to fuel an aggressive ad campaign. Battle shifted from Price to Quality, with Pepsi targeting the youth.

What followed was the Pepsi Challenge & “Real Thing” Coke ads

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Pepsi Coke

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Pepsi

Coke

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Pepsi Coke

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Coke

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Pepsi Coke

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Coke

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Coke

Perceived Quality Perceived Quality

Fig.3

Fig.4

Perceived quality caught up. Deeper pocketed and lower cost Coke initiated a price war in selective markets where Pepsi was weak in the 70s. Pepsi responded with its discounts and by the end of the 80s, 50% of food store sales were on discount.Other companies moved into the lower left quadrant of.

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Pepsi Coke

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First move:PepsiChallenge

Perceived Quality Perceived Quality

Youth & MiddleClass Segments 2nd move:

Coke’s Ad war

Pepsi Coke

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First move:PepsiChallenge

Perceived Quality Perceived Quality

Youth & MiddleClass Segments 2nd move:

Coke’s Ad war

BUSINESS SEGMENTS

The RKJ Group is divided into three-business segments- Beverage, Food and Education. It has a leading market position in each of its three business segments. Our balanced portfolio produced a solid business performance. Products and services, which look to the future, ensure that we will be well placed in growth markets.

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BEVERAGE INDUSTRY

Indian Beverages industry’s size is Rs. 8000 Crore and it is dominated by two player’s viz. Pepsi & Coke only. This high profile industry has lot of potential for growth as per capita consumption in India is 8 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal.

The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra.

The group manufactures and markets carbonated and Non-Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi, Mirinda Orange, Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango, Evervess Soda and Aquafina.

It has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India.

In order to later to this increasing demand, new bottling plants are being set up at alwer, kosi, Jodhpur, Kathmandu and goa to produce400-600 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.

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INGREDIENTS OF SOFT DRINK :

In the United States, Pepsi is made with carbonated water, high fructose corn syrup, caramel color, sugar, Phosphoric acid, caffeine, citric acid and natural flavors. A can of Pepsi (12 fl ounces) has 41 grams of carbohydrates (all from sugar), 30 mg of sodium, 0 grams of fat, 0 grams of protein, 38 mg of caffeine and 150 calories. The caffeine-free Pepsi-Cola contains the same ingredients but without the caffeine.The original Pepsi-Cola recipe was available from documents filed with the court at the time that the Pepsi-Cola Company went bankrupt in 1929. The original formula contained neither cola nor caffeine.In August 2010, PepsiCo entered into a 4-year agreement with Senomyx for the development of artificial high-potency sweeteners for PepsiCo beverages. Under the contract, PepsiCo is paying $30 million to Senomyx for the research and future royalties on PepsiCo products sold using Senomyx technology.According to PepsiCo, PepsiCo's collaboration with Senomyx will focus on the discovery, development and commercialization of sweet enhancers, with the purpose of providing lower-calorie PepsiCo beverages. PepsiCo will have exclusive rights to the Senomyx sweet flavor ingredients developed through the collaboration.See also

Diet Pepsi Pepsi spokespersons Pepsi Max Big One  (Roller coaster) Pepsi Orange Streak  (Roller coaster) Pepsi Python  (Roller coaster) Pepsi Billion Dollar Sweepstakes Mountain Dew AMP Energy Citrus Blast Pepsi Next

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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.

Ascorbic Acid

Another name for Ascorbic Acid is Vitamin C the Ascorbic Acid used in our carbonated soft drinks functions as an antioxidant to protect the flavors, color, and taste. In some beverages we also add it to provide the nutritive value found in Vitamin C.

Aspartame

Aspartame is a sugar substitute used in our diet beverages and many other food products. Aspartame is made of the same building blocks as protein, so it is considered a "nutritive sweetener," but the very small amounts used in diet drinks contribute no calories.

29

Blue1

Blue 1 is a FDA-approved food coloring used in a variety of products such as jellies, condiments, puddings, and beverages.

Brominated Vegetable Oil (BVO)

Brominated vegetable oil has been used by the soft drink industry since 1931. It is a widely used food additive that has been extensively tested and approved by the U.S. Food & Drug Administration.

Brominated vegetable oil is derived from soybean oil that has been modified in order to keep the flavoring oils well blended.

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

30

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.

High Fructose Corn Syrup

High Fructose Corn Syrup (HFCS) is a sugar derived from corn and provides sweetness and taste to our beverages.HFCS has the same sweetness as table sugar (sucrose) and has almost the identical composition of fructose and glucose.

Natural Flavorings

Natural Flavorings are flavoring ingredients that are the essences or extracts derived from natural plant sources.Natural Flavorings are what gives a product its distinctive flavor and taste. Pepsi products are the only products with these distinct flavor blends, which are considered part of our secret formula. The term natural flavor is defined by the food and drug administration and all of our natural flavorings meet this definition.

Phosphoric Acid

A small amount of phosphoric acid is added to our soft drinks. However, it is greatly diluted and is fully approved by the U.S. Food and Drug Administration for use in soft drinks. Phosphoric acid provides tartness, essential to a well-rounded flavor.Phosphorus, like calcium, is an essential mineral in bone. It is widely distributed in the food supply, including fish, milk, meat, eggs and cereal grains.

Potassium

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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 of ingredients, such as organic acids. Although diet drinks may have no sugar, they may contain more than half a gram of carbohydrate.

Yellow5

Yellow 5 is a FDA-approved food coloring. Used since 1916, it is found in a variety of products such as skim milk, yogurt and macaroni and cheese.

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FOOD INDUSTRY

The last decade has been a period of dynamic growth for non-alcoholic drinks and has witnessed completely new segment of the food market in India taking shape. Food market at stake in India is enormous. The food chain and the forces acting on the food chain are changing rapidly, and in a generally positive manner.

India's sheer size and diversity are enough to make it an attractive market for nearly every major food, beverage and agribusiness company. A KSA Technopak study indicates that the fast food industry in India will be worth $1.27 billion by year 2005.

To capitalize on the RKJ group’s significantly important relationship with Pepsi Foods, it decided to venture into food sector, which is second largest business for Pepsi all over the world. Fast food is the most happening thing across the world.

The group became the first franchisee for Yum Restaurants International formerly PepsiCo Restaurants (India) Private Limited in India.

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It has exclusive franchise rights for Northern & Eastern India. Out of 56 operational Pizza Hut restaurants in the country 27 restaurants are owned and run by its company.

All these restaurants are making good profits & are dominating the market. The name of business entity is Devyani International Private Limited.

ICE CREAMS UNDER “CANDIA” BRAND

The India ice creams and frozen desserts market forms part of the food industry. Ice creams and frozen desserts are convenience products, which are ideally suited to the emerging lifestyles and eating trends of Urban India.

The RKJ group has its presence in the Ice Cream segment since 1991, when it started manufacturing and marketing Ice Cream under the brand name of “Gaylord” in the state of U.P.

During 1996 it sold its brand to Brooke Bond and started supplying Ice Cream to Hindustan Lever as their Ice Cream souring plant. After working for 10 years in this field, during 2003 it has launched its own brand in technical and marketing collaboration with Candia of France.

Advertisement and Add Concept:-

Advertisements are cost effective means to communicate messages and ideas to build brand preferences and awareness and it is one of the most important tools which a company uses to direct persuasive communication to directive buyers in public or to educated people to avoid hard drink and so on.

The basic objective of advertising is sales promotion sales promotion expenditure have been increasing as a percent of budget expenditure annually and the growth is likely to continue in future. Our celebrities signed by the PepsiCo are as follows:

For PepsiCo .

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Celebrities:-

Amitabh Bachchan Sharukh Khan Saif Ali Khan Fardeen Khan Kareena Kapoor Preeti Zinta Priyanka Chopara Kajol Rani Mukharjee Ranbeer Kapoor

Cricketers:-

Sachin Tendulkar Saurav Ganguly Yuvraj Singh Harbhajan Singh Rahul Dravid Zaheer Khan Mohammad Kaif MS Dhoni (Captain Team India)

Tennis Stars :-

Leander Paes Mahesh Bhupati

Football Players:-

Cyrus Broacha Bhaichung Bhatia

35

36

KEY ELEMENTS OF THE TRADE

1. JO DIKHTA HAI WAI BIKTA HAI: - This is a company slogan, it is to increase the visibility of the product, the company stresses more on increasing the number of outlets than on the volumes of sales. That is the reason of the company providing visibility courses to the shopkeepers.

2. A BOTTLE THAT IS CHILLED IS SOLD: - In the industry it is considered that a bottle is chilled or putting in cooling compartment is sold. That is the reason the policy providing triage’s come up because according to the contract the shopkeeper has to keep only & only Pepsi’s products in the visicooler.

3. A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI: - The competition is so strong between the two companies i.e. fighting is on for each bottle that is to be sold in the market. Competitive bidding goes on for each & every prestigious outlet in their region. Monopolizing entries & fat foods joint s is their first priority.

4. EMPTY KA HI KHEL HAI: - [Empty plays an important role]: - As discussed earlier the distribution points keeps on putting up distribution schemes for retailers i.e. like two bottles of solution free with the purchase of every one carat of solution. Now these schemes have timed well keeping minding the environmental conditions & schemes provided by the other company. These schemes are of twenty-four hours duration. If a scheme is launched & there is no empty in the market for refill, the whole effort goes in vain that is the reason is said ki sub empty ka khel hai.

37

Products Availability of Pepsi

Sl.

No.

Products 200

ml

250

ml.

300

ml.

330

ml.

500

ml.

600

ml.

1000

ml.

1200

ml.

2000

ml.

1. Pepsi - - - - -

2. Pepsi diet - - - - - - - -

3. Pepsi Gold - - - - - - - -

4. Mirinda - - - - -

5. Mirinda

Lime

- - - - - - - -

6. M. Sorbet - - - - - - - -

7. 7Up - - - - -

8. M. Dew - - - - - -

9. Pepsi Can - - - - - - - -

10. 7Up Can - - - - - - - -

11. Mirinda

Can

- - - - - - - -

12. M. Dew

Can

- - - - - - - -

13. Diet Can - - - - - - - -

14. Slice - - - - - -

15. Aquafina - - - - - - - -

16. Tropicana - - - - - - -

17. Everest

Lehar

- - - - - - -

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Products Availability of Coke:-

Sl.

No.

Products 200

ml.

250

ml.

300

ml.

330

ml.

600

ml.

1000

ml.

1200

ml.

1500

ml.

1. Coco-cola - - - -

2. Thumps-Up - - - -

3. Sprite - - - -

4. Fanta - - - -

5. Limca - - - -

6. Maaza - - - - -

7. Coca-cola Can - - - - - - -

8. Thumps Up

Can

- - - - - - -

9. Sprite Can - - - - - - -

10. Fanta Can - - - - - - -

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11. Cole Diet - - - - - - -

12. Kinely Soda - - - - - -

13. Kinely - - - - - - -

14. Fruit Juice NA - - - - NA - -

Pepsi Products’ Price (in Rs.) List for Retailers

Sl.

No.

Products 200

ml.

250

ml.

300

ml.

330

ml.

500

ml.

600

ml.

1000

ml.

1200

ml.

2000

ml.

1. Pepsi 166 - 216 - 560 - - - 500

2. Pepsi diet - - - - - 560 - - -

3. Pepsi Gold - - - - - - - - -

4. Mirinda 166 - 214 - 560 - - - 530

5. Mirinda

Lime

216 - - - - - - - -

6. M. Sorbet - - - - - - - - -

7. 7Up 216 - 214 - - 560 - - 530

8. M. Dew

Can

- - - - 454 - - - 454

9. Pepsi Can - - - - - - - - -

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10. 7Up Can - - - - - - - - -

11. Mirinda

Can

- - - - - - - - -

12. M. Dew

Can

- - - - - - - - -

13. Diet Can - - - - - - - - -

14. Slice - 214 - - 560 - - - -

15. Aquafina - - - - - - 105 - -

16. Tropicana - - - - - - - - -

17. Everest

Lehar

- - - - - - - - -

Pepsi Products’ Price (in Rs.) List for Retailers

Sl.

No.

Products 200

ml.

250

ml.

300

ml.

330

ml.

500

ml.

600

ml.

1000

ml.

1200

ml.

2000

ml.

1. Pepsi 168 - 214 - - 560 - - 500

2. Pepsi diet - - - - - 560 - - -

3. Pepsi Gold - - - - - - - - -

4. Mirinda 168 - 214 - - 560 - - 530

5. Mirinda

Lime

168 - - - - - - - -

6. M. Sorbet - - - - - - - - -

7. 7Up 165 - 214 - - 560 - - 530

8. M. Dew

Can

- - - - 454 - - - -

9. Pepsi Can - - - - - - - - -

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10. 7Up Can - - - - - - - - -

11. Mirinda

Can

- - - - - - - - -

12. M. Dew

Can

- - - - - - - - -

13. Diet Can - - - - - - - - -

14. Slice - 214 - - 444 - - 550 -

15. Aquafina - - - - - - 105 - -

16. Tropicana - - - - - - - - -

TYPE OF PACKS AVAILABLE :-

QUANTITY MRP/PCsRATES

200ml (24b/s per crate) 10/- 168/- 300ml (24b/s per crate) 12/- 168/-

600ml (24b/s per peti) 27/- 216/-

2-liter (9b/s per peti) 59/- 500/-

200ml (24b/s per crate) slice 10/- 166/-

1000ml (12b/s per crate) slice 40/- 430/-

200ml (24PCspercrate) tetra slice 10/- 168/-

500ml (24b/spercrate) diet Pepsi 20/- 560/-

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330ml (24PCs) diet Pepsi cane 25/- 454/-

330ml (24PCs) Pepsi cane 20/- 454/-

500ml (24PCs) pepsi café-chino 20/- 430/-

SODA: -

Lehar Soda 300ml (24PCs per crate) 6/- 120/-

Lehar Soda 600ml (24b/s per peti) 10/- 216/-

WATER: -

Aquafina-1liter (12b/s per peti) 103/-

Aquafina-2liter (12b/s per peti) 199/-

A price generally depends upon the company.

PRICING OF EMPTIES

QUANTITY PRICE

200ml Rs.165 per crate

300ml Rs.214 per crate

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The Shell Cost Rs 100/- each

Empty bottle Rs 6/- each

PROMOTION: -

The promotion budget is set by the Head Office and thereby is distributed among the different bottler’s all over the country on the basis of there past performances & requirements.

Distribution Network in Greater Noida

PEPSI FOODS LTD (Parent Co.) Greater Noida

VARUN BEVERAGE LTD (Bottling Plant) Greater Noida

Distributors Distributors C&F Distributors

Fat Dealer (2) Fat Dealers (4) Fat Dealers (2)

44

Retailers Retailers Retailers Retailers

CONSUMERS

Slogans

1939–1950: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 1950–1957: "Any Weather is Pepsi Weather" 1957–1958: "Say Pepsi, Please" 1958–1960: "Don't be a Tramp, Buy a Can" Zane 1961–1964: "Now It's Pepsi for Those Who Think Young" (jingle

sung by Joanie Sommers) 1964–1967: "Come Alive, You're in the Pepsi Generation" (jingle

sung by Joanie Sommers) 1967–1969: "(Taste that beats the others cold) Pepsi Pours It On". 1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 1975–1977: "Buy a can 50p" (United Kingdom) 1977–1980: "Join the Pepsi People (Feeling Free)" 1980–1981: "Catch That Pepsi Spirit" (David Lucas, composer) 1981–1983: "Pepsi's got your taste for life" 1983: "Its cheaper than Coke!" 1983–1984: "Pepsi Now! Take the Challenge!" 1984–1991: "Pepsi. The Choice of a New Generation" (commercial

with Michael Jackson and The Jacksons, featuring the Pepsi version of

45

"Billie Jean", "Bad" and "Black or White". "Black of White"'s was promoting the Dangerous World Tour.)

1984–1988: "Diet Pepsi. The Choice of a New Generation" 1988–1989: "Diet Pepsi. The Taste That's Generations Ahead" 1989–1990: "Diet Pepsi. The Right One" 1989–1992: "Diet Pepsi. The Taste That Beats Diet Coke" 1986–1987: "We've Got the Taste" (commercial with Tina Turner) 1987–1990: "Pepsi's Cool" (commercial with Michael Jackson,

featuring Pepsi version of Bad) 1990–1991: "You got the right one Baby UH HUH" (sung by Ray

Charles for Diet Pepsi) 1990–1991: "Yehi hai right choice Baby UH HUH" (Urdu, Hindi –

meaning "This is the right choice Baby UH HUH") (Pakistan), (India) 1991–1992: "Gotta Have It"/"Chill Out" 1992:"The Choice Is Yours" 1992–1993: "Be Young, Have Fun, Drink Pepsi" 1993–1994: "Right Now" (Van Halen song for the Crystal

Pepsi advertisement) 1994–1995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz) 1995: "Nothing Else is a Pepsi" 1995–1996: "Drink Pepsi. Get Stuff." (Pepsi Stuff campaign) 1996:"Change The Script" 1996–1997: "Pepsi: There's nothing official about it" (During the

Wills World Cup (cricket) held in India/Pakistan/Sri Lanka) 1997–1998: "Generation Next" (with the Spice Girls) 1998–1999: "Its the cola" (100th anniversary commercial) 1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola"

(commercial with Britney Spears/commercial with Mary J. Blige) 1999–2006: "Yeh Dil Maange More!" (Hindi – meaning "This heart

asks for more") (India) 2002: "Change the World" (Japan) 2003: "Its the Cola"/"Dare for More" (Pepsi Commercial) 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever

young" (Mary J. Blige) 2007–2008: "More Happy"/"Taste the once that's forever young"

(Michael Alexander)

46

2000–present: "Pepsi ye pyaas heh badi" ((Urdu), ((Hindi)) meaning "There is a lot of thirst" (Pakistan)) ((India))

2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake) 2008: "Pepsi is #1" TV commercial (Luke Rosin) 2008–present: "Something For Everyone" 2009–present: "Refresh Everything"/"Every Generation Refreshes the

World" 2009–present: "Yeh hai youngistaan meri jaan" (Hindi – meaning

"This is our young country my baby") 2009–present: "My Pepsi My Way"(Pakistan) (India) 2009–present: "Refresca tu Mundo" (Spanish – meaning "Refresh

your world") (Spanish Spoken countries in Latin America) 2009: "Joy It Forward" (Canada) 2010–present: "Every Pepsi Refreshes The World" 2010–present "Pepsi. Sarap Magbago." (Philippines – meaning "Its

nice to change") 2010–2011 "Badal Do Zamana" (Urdu – meaning "Change The

World" by CALL)(Pakistan) 2010–2011 "Love!" (Japan, for Pepsi Nex) 2010–present: "Pode ser bom, pode ser muito bom, pode ser Pepsi"

(Can be good, can be very good, can be Pepsi) – Brazil and Portugal 2011–present: "Change the game" (India, Bangladesh & Pakistan for

the 2011 Cricket World Cup) 2011–present "Dunya Hai Dil Walon Ki" (Pakistan-meaning World is

For Lovers by Ali Zafar) 2011–present "Ici, c'est Pepsi" (Québec-meaning Here, it's pepsi) 2011–present "Go next!" (Japan, for Pepsi Next) 2011–present "Summer Time is Pepsi Time" 2011–present "Born in the Carolinas" 2012: "Where there's Pepsi, there's music" – used for the 2012 Super

Bowl commercial featuring Melanie Amaro 2012 "Live For Now" 2012 Pepsi, Now “Change the Game”.

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DISTRIBUTION STRATEGIES

A Company can choose any of the following distribution types: -

Exclusive Distribution

Selective Distribution

Intensive Distribution

“PEPSI” HAS ADOPTED THE INTENSIVE DISTRIBUTION STRATEGY.

INTENSIVE DISTRIBUTION:

A Strategy of intensive distribution is characterized by placing the goods or services in as many outlets as possible. When the consumer requires a great deal of location convenience, it is important to offer greater intensity of Distribution. This strategy is generally used for convenience items such as Tobacco, gasoline, and soap, snack foods & bubblegum.

Manufactures are constantly tempted to move from exclusive or selective distribution to more intensive distribution to increase their coverage and sales and you could find Pepsi in nursing homes, confectionery shops, departmental stores; you name it & Pepsi is available there.

48

DISTRIBUTION CHANNEL REDIFINED

Pepsi has redefined distribution to strengthen their competitive advantage in the emerging consumer and market scenario. Their earlier focus was to drive wide availability and enable easy access to their brands for consumers. Now they seek to go well beyond this distribution paradigm. Their new approach is more holistic touching consumers in multiple ways at the point of purchase and more importantly, creating opportunities for customers to receive brand message and experience our brands.

They are proactively addressing these emerging trends by approaching distribution and channels in a much broader way. They are shifting emphasis from mere reach or availability expansion to touching consumers with a 3- way convergence- of product availability, brand communication and higher level of brand experience.

They are thus going beyond delivering products and creating greater engagement and interaction around the purchasing experience.

Pepsi’s reinvention of distribution is built on an understanding of emerging consumer trends, the retail environment and the growth drivers of our brands.

ProductAvailability

PointOf

Purchase

BrandExperience

BrandCommunication

49

Pepsi’s distribution system is a key external resource. Normally it has taken years to build and cannot be easily changed. It ranks in importance with key internal resources such as manufacturing, research, engineering and field sales personals. It represents significant corporate commitment to set policies and practices that constitute the basic fabric on which is woven an extensive set of long run relationship.

50

CHANNEL FUNCTION AND FLOWS

Marketing channel perform the following functions-

To gather the information about potential and current customers, and competitors.

To reach agreements on Price To list orders with manufacturers. They provide the successive storage and movement of physical

products.

It can be defined as backward and forward integration i.e. starting from supplier of the raw material to the end customer. The physical flow of Pepsi from its manufacturing unit at Kosi (Varun Beverages) to various retailers in Sahibabad is as follows-

51

PRODUCT & PACK PROFILE

PRODUCT: -

Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known are one of the largest FMCG market in the whole world with the total annual sales around $40 billion. This product is generally available in 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 the Cola brand, which is the market leader in the most part of the country of these kinds of packaging in which the product is available make them 80% of the sales come from these bottles. The businesses of returnable bottles are very cumbersome and make the market very complex and demanding.

52

Facilities Provided By The Customer To The Retailer

1. VISI COOLER

65 Liter 110 Liter 120 Liter 165 Liter 200 Liter 210 Liter 220 Liter 300 Liter 320 Liter 330 Liter 500 Liter

According to outlet nature, volume & investment of the outlet.

2. SCHEMES OF VOLUME PURCHASE

Cash discount Card discount (sampling)

3. DISPLAY MATERIAL

Stickers Banners G.S. Boards D.P.S. Boards Racks Counters Umbrellas

OBJECTIVE OF THE STUDY

53

To find out the problems faced by the channels of distribution.

To increase penetration in the market.

To find out availability of Pepsi & Coke in the outlets.

To see the distribution gap by which the product is selling.

54

RESARCH METHODOLOGY

Research in common refers to a search of knowledge. One can also define research as a scientific & systematic search for pertinent information of a specific topic. It is the pursuit of truth with the help of study observation, comparison & experiment.

DEVELOPING RESARCH PLAN:

After deciding the objective of marketing research the next step is deciding Research plan for gathering effective information related to this research project. The research consists of following steps, which are discussed subsequently.

Research Design :

Descriptive Research: In my market survey descriptive research process was carried out to describe the market characteristics, consumer profiles, distribution strategies, and market potential.

Data Source:

During project study I use both primary as well as secondary data source. For primary data collection I visited various retailers in Ghaziabad & for secondary data I went through Books, Journals & Internet. The information collected is relevant, correct & unbiased.

Research Design:

I followed survey technique for collecting the data. In market survey research approach. Here, I carried out information from retailers have carefully selected the instrument & methods of surveying like I have chosen personal contact methods because of higher response rate & meaningful responses this helped me to get the general feedback in Pepsi, etc.

Reach Instrument :

The research instrument used was EDS form. In which market information detail of each outlet should be filled in EDS form. For this I have visited

55

each & every outlet & check all the brands & packs of Pepsi are available or not or which one is available in comparison with Coke & filled it in EDS forms. In my research process I have used closed ended & open-ended questionnaire where respondents could answer in their own manner. Through this I was able to extract information from the respondents about Pepsi’s products & the competitors.

Sampling Plan:

In designing the sampling plan following points were considered:

Sampling Unit: It includes who is to be a surveyed retailer of Greater Noida.

Sampling Size: I have surveyed about each & every outlet of the area specified to me so size would reach upto 700 retailers.

Elementary Retailers:

The geographical limit is the area of Greater Noida. Contact Method:

In my research process, I have collected information through personal interview process with the help of EDS. Form given by the company because it is the most reliable & accurate method for collecting primary data. Through this, the analysis of body language & facial expressions can be made.

Methods of data interpretation:

In this market study I have used pie chart for data analysis & interpretation because pie chart is the easiest & comprehensive medium for presentation of data.

Sampling unit is a single retailer’s outlet which may be:-provision store, stationery shop, eatery &kiosk.

The universe studied is the sum of the retailers in the Greater Noida area.

56

DATA ANALYSIS FROM RETAILERS &DISTRIBUTORS

PERSPECTIVE:

Frequencies

18.67%

64.0%

7.0%

3.67%6.67%

Strongly agreeAgreeCan't SayStrongly DisagreeDis Agree

PepsiCo having good distrbution channel

If we see the chart then we find that out of 100% respondent 64% are agree

that PepsiCo have good distribution channel and only 18.67% are strongly

agree, the data shows that company should focus on their distribution

57

channel and try to convert customer in strongly agree respondent by

providing them better services and schemes.

41.33%

38.33%

18.0%

1.0%

Strongly agreeAgreeCan't SayStrongly DisagreeDis Agree

Distribution channel is importent in positioning of product

58

If we see the chart then we find that out of 100% respondent 41.33%

respondent are strongly agree that distribution channel have an important

role in positioning of the product and 38.33% are agree and rest are disagree,

it shows that our objective is fulfilled by this research and we can say that if

we have to promote our product then we should have strong distribution

channel.

70.33%

29.67%

yesNo

V.C. coolors provided by the company

59

If we see the chart then we find that out of 100% respondent, 70.33% are

saying that they are getting V.C. coolers but 29.67 % are saying that they are

not getting, it means company is not focusing on all retailers that major

concerns for the organization.

27.33%

54.33%

3.67%

10.0%

4.67%

Strongly agreeAgreeCan't SayStrongly DisagreeDis Agree

PepsiCo relationship with the retailers/distributors

60

If we see the chart then we find that out of 100% respondent 27.33%

respondent are strongly agree that PepsiCo has maintaining good

relationship with them and 10% are strongly disagree and 54.33 % are agree,

it shows that company should thing that how can they maintain better

relationship with every retailers and distributors.

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35.33%

48.67%

5.33%

10.67%

ExcellentGoodBadWorst

Perception of retailers/distributors towards the pepsiCo Distribution channel

If we see the chart then we find that out of 100 % respondent only 35.33%

are saying that PepsiCo have excellent distribution channel and 10.67% are

saying that PepsiCo have worst distribution and 48.67 % are saying that

PepsiCo have good distribution channel, here area of concern that how

company can make happy those respondent who are thinking that PepsiCo

62

have worst/bad Distribution channel and how can company develop good

distribution channel and change the perception of retailers and distributors.

51.33%48.67%

yesNo

"If better scheme is given then replace with coke"

If we see the chart then we find that out of 100% respondent, 51.33%

respondent are saying that if they will get better services and scheme then

they will switch over to another brand like coke and only 48.67% are saying

that they will not switchover, it show that company should focus that how

63

can be provided better schemes and services to the retailers and distributors

in result they will not switchover to another brand.

Cross tabulation:

PepsiCo having good distribution channel * PepsiCo relationship with

the retailers/distributors

Symmetric Measures

Value

As-

sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.593 .042 12.706 .000(c)

Ordinal by

Ordinal

Spearman

Correlation.532 .048 10.851 .000(c)

N of Valid Cases 300

A. Not assuming the null hypothesis.

B. Using the asymptotic standard error assuming the null hypothesis.

C.Based on normal approximation.

64

Strongly agree

Agree Can't Say Strongly Disagree

Dis Agree

PepsiCo having good distrbution channel

0

20

40

60

80

100

120

140

Cou

nt

8.33%

18.33%

0.67%

42.33%

1.0% 0.67%1.33%5.67%

0.33%

PepsiCo relationship with the retailers/distributors

Strongly agreeAgreeCan't SayStrongly DisagreeDis Agree

Bar Chart

If we see the table then we find that the relationship with the retailers and

distributors having an important role in maintaining the good distribution

channel because 42.33% respondent are agree to say that we have good

relation with the PepsiCo and that shows that PepsiCo having good

distribution channel.

PepsiCo relationship with the retailers/distributors * Time taken by

the company to make reach the product at retailers shop

65

Symmetric Measures

Value

As

sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.710 .027 17.383 .000(c)

Ordinal by

Ordinal

Spearman

Correlation.664 .036 15.334 .000(c)

N of Valid Cases 300

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

66

Strongly agree

Agree Can't Say Strongly Disagree

Dis Agree

PepsiCo relationship with the retailers/distributors

0

20

40

60

80

100

Cou

nt

22.0%24.67%

5.33%

29.33%

2.0%0.33% 1.67%

8.67%

1.33%

Time taken by the company to make

reach the product at retailers shop

One Day3 DayOne WeekOne Month

Bar Chart

If we see the table then we find that out of 100% respondent 29.33%

respondent are saying that we have good relation with the PepsiCo because

they are providing products at right time .

PepsiCo relationship with the retailers/distributors * V.C. coolers provided

by the company.

67

Symmetric Measures

Value

As

sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.592 .046 12.674 .000(c)

Ordinal by

Ordinal

Spearman

Correlation.535 .047 10.927 .000(c)

N of Valid Cases 300

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

68

Strongly agree

Agree Can't Say Strongly Disagree

Dis Agree

PepsiCo relationship with the retailers/distributors

0

20

40

60

80

100

120

140

Cou

nt

24.67%

44.33%

0.33% 1.0%2.67%

10.0% 10.0%

V.C. coolors provided by the

companyyesNo

Bar Chart

If we see the table then we find that out of 100% respondent 44.33%

respondent are agree to say that they have good relationship with PepsiCo

because of they are getting visi coolers by the company, it means visi

coolers have an important role in maintaining the good relationship with the

retailers.

PepsiCo relationship with the retailers/distributors * “If better scheme is

given then replace with coke"

69

Symmetric Measures

Value

As-

Sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R-.429 .041 -8.203 .000(c)

Ordinal by

Ordinal

Spearman

Correlation-.479 .045 -9.427 .000(c)

N of Valid Cases 300

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

70

Strongly agree

Agree Can't Say Strongly Disagree

Dis Agree

PepsiCo relationship with the retailers/distributors

0

20

40

60

80

100

120

Cou

nt

3.0%

34.67%

0.67%

8.67%

4.33%

24.33%

19.67%

1.33% 0.33%

"If better scheme is given then replace

with coke"yesNo

Bar Chart

If we see the table then we find that 24.33% are strongly aree that they will

not switchover to another brand because of better scheme but 34.67%

respondent are strongly agree that if they will get better services and

schemes then they will switch over to an- other company’s brand, it shows

that if company have to ,maintain good relationship with retailers and

distributors then company will be focus on better services and schemes.

PepsiCo having good distribution channel * logistics facility of the company

71

Symmetric Measures

Value

As-

sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.216 .031 3.815 .000(c)

Ordinal by

Ordinal

Spearman

Correlation.230 .047 4.075 .000(c)

N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

72

Strongly agree

Agree Can't Say Strongly Disagree

Dis Agree

PepsiCo having good distrbution channel

0

50

100

150

Cou

nt

5.33%

11.0%13.33%

53.0%

7.0%3.67%

6.67%

logistics facility of the company

owncompany

Bar Chart

If we see the table then we find that out of 100% respondent 53% respondent

are agree to say that better facility of logistics have an important role in

having good distribution channel .

Visi coolers provided by the company * PepsiCo having good distribution

channel

73

Symmetric Measures

Value

As-

sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.487 .049 9.632 .000(c)

Ordinal by

Ordinal

Spearman

Correlation.443 .052 8.530 .000(c)

N of Valid Cases 300

A, Not assuming the null hypothesis.

B Using the asymptotic standard error assuming the null hypothesis.

C. Based on normal approximation.

74

yes No

V.C. coolors provided by the company

0

50

100

150

Cou

nt

16.33%

2.33%

50.67%

13.33%

2.0%5.0%

3.0%0.67%

6.0%

PepsiCo having good distrbution

channelStrongly agreeAgreeCan't SayStrongly DisagreeDis Agree

Bar Chart

If we see the table then we find that out of 100 % respondent, 50.67% are

saying that they are agree to say that PepsiCo have good distribution channel

because they are getting visi coolers from the company, it shows that visi

coolers have an important role in having a good distribution channel.

Visi coolers provided by the company * Perception of retailers/distributors

towards the PepsiCo Distribution channel

75

Symmetric Measures

Value

As-

sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.544 .048 11.184 .000(c)

Ordinal by

Ordinal

Spearman

Correlation.442 .056 8.509 .000(c)

N of Valid Cases 300

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

76

yes No

V.C. coolors provided by the company

0

25

50

75

100

125

Cou

nt

29.33%

6.0%

40.33%

8.33%

0.67%

4.67%

10.67%

Perception of retailers/distributors

towards the pepsiCo Distribution

channelExcellentGoodBadWorst

Bar Chart

If we see the table then we find that out of 100% respondent, 40.33%

respondent are saying that PepsiCo have good distribution channel because

they are getting visi coolers from the company, it shows that visi coolers are

very important for having good distribution channel.

Time taken by the company to make reach the product at retailers shop *

PepsiCo having good distribution channel

77

Symmetric Measures

Value

As-

Sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.735 .028 18.714 .000(c)

Ordinal by

Ordinal

Spearman

Correlation.713 .030 17.575 .000(c)

N of Valid Cases 300

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

78

One Day 3 Day One Week One Month

Time taken by the company to make reach the product at retailers shop

0

20

40

60

80

100

120

Cou

nt

18.67%

27.33%

35.33%

1.33%0.67%

6.0%

0.33%0.67% 1.0%

5.0%

1.0%

PepsiCo having good distrbution

channelStrongly agreeAgreeCan't SayStrongly DisagreeDis Agree

Bar Chart

If we see the table then we find that 18.67 % respondent are strongly agree

that PepsiCo good distribution channel because they are getting product

within one day and 35.33% respondent are agree to say that PepsiCo have

good distribution channel if they are getting product within 3 days,it shows

that company’s distribution is depends on time that how quick company is

providing product at door of the retailers/distributors.

PepsiCo having good distribution channel * Services provided by the

distribution/PepsiCo

79

Symmetric Measures

Value

As

sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.640 .048 14.361 .000(c)

Ordinal by

Ordinal

Spearman

Correlation.562 .043 11.727 .000(c)

N of Valid Cases 300

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

80

Strongly agree

Agree Can't Say Strongly Disagree

Dis Agree

PepsiCo having good distrbution channel

0

50

100

150

200

Cou

nt

18.67%

59.0%

3.33%0.67% 1.0%

5.0%

Services provided by the

distribution/PepsiCoyesNo

Bar Chart

If we see the table then we find that 59.0% respondent are agree to say that

PepsiCo have good distribution channel because they are getting good

services and only 18.67% are strongly agree, it shows that better services

and schemes have an important role in maintain good distribution channel.

Distribution channel is important in positioning of product * “How

accurately they fill the order"

81

Symmetric Measures

Value

As

sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.097 .034 1.675 .095(c)

Ordinal by

Ordinal

Spearman

Correlation.191 .044 3.365 .001(c)

N of Valid Cases 300

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

82

Strongly agree

Agree Can't Say Strongly Disagree

Dis Agree

Distribution channel is importent in positioning of product

0

25

50

75

100

125

Cou

nt

41.0%

17.33% 18.0%

1.0% 1.33%0.33%

21.0%

"How accurately they fill the order"

100%50-80%

Bar Chart

If we see the table then we find that 41.0% respondent are strongly agree to

say that distribution channel have an important role in positioning of the

product because of only by good distribution channel they are getting fill

their order by 100%.

83

DATA ANALYSIS FROM CONSUMERS PERSPECTIVE:

Frequencies:

55.0%

45.0%

yesNo

Demanded brand Available in the Market

If we see the chart then we find that out of 100%respondent, only 55%

respondent are agree to say whatever brand they demanded they are easily

get that but 45% respondent are saying that they are not getting the

demanded brand, it is major concern that why these respondent are not able

to get their demanded brand.

84

Cross Tabulation:

Age of the respondent * Soft drink consumed by the respondent in a

week

Symmetric Measures

Value

As

Sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R.332 .106 3.489 .001(c)

Ordinal by

Ordinal

Spearman

Correlation.322 .103 3.363 .001(c)

N of Valid Cases 100

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

85

10-20 21-25 26-35 Above

age of the respondent

0

5

10

15

20

25

30

Cou

nt

8.0%6.0%

1.0%3.0%

30.0%

5.0%

9.0%

1.0% 1.0%2.0%

10.0%

Soft drink consumed by the respondent in a

weekonetwo to threethree to fivemore than five

Bar Chart

If we see the graph then we find that age group 21-25 is more potential

customer and company should focus on them and provide them better taste,

quality according their preferences.

Brand preferred by the respondent * demanded brand Available in the

Market

86

Symmetric Measures

Value

As

sump.

Std.

Error

(a)

Approx

. T(b)

Approx.

Sig.

Interval by

Interval

Pearson's R-.241 .093 -2.455 .016(c)

Ordinal by

Ordinal

Spearman

Correlation-.241 .095 -2.455 .016(c)

N of Valid Cases 100

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

87

PepsiCo Coke Others

Brand prefered by the respondent

0

5

10

15

20

25

30

Cou

nt

23.0% 22.0%

10.0%

29.0%

13.0%

3.0%

Demanded brand Available in the

MarketyesNo

Bar Chart

If we see the graph then we find that coke brand is more easily available

than Pepsi it means there is some fault in

distribution channel and company should find that

and make available their brand at every retailers

shop.

88

COMPRISION STUDY OF PEPSI AND COKE

SERVICE

89

COKE44%

PEPSI56%

90

ANALYSIS OF FINDINGS AND

OBSERVATIONS:

91

The main objective of the company is to increase the brand preference and market share so any information material form this point of view had to be take into account along with the formats provided by the company for predefined information recording and analysis of those recordings and present the information in an organize and systematic manner in a condensed form reflecting the actual position of the market.

The information had to be recorded in the format along with the relevant information as per the objectives of the research and an analysis of that information had to be made and present them in an understandable format so that immediate inferences can be drawn. Generally those information had to be presented in percentages and the other findings and observations had to be evaluated and a list of findings had to be arranged in order of their seriousness and areas of serious concern along with the outlet details.

After the analysis sheets and formats have been surrendered to the C.E’s after analysis by the trainees it was further analyzed and evaluate by him and a brief analysis was made each day of the daily report. The CE’s further forwarded these reports after retaining the reference copy, to MDC for further review and reference.

SWOT ANALYSIS

92

STRENGTHS

Pepsi is a well-established co., so it has a good reputation in the market.

Advertising of Pepsi is much more aggressive than Coke.

Backed by huge promotion at national & international level.

Lot of SGA’s provided in the market.

. Marketers are aggressive to solve The problem

Marketing channel is more strong compression coke

WEAKNESSES

Non-fulfillment of commitments on time, made to shopkeepers.

Incompetent salesman who do not give the schemes in the market regularly.

Unavailability of various demanded flavors like Mountain Dew & Mirinda, Lemon.

Not proper control over distribution network. Lack of Knowledge about the product.

OPPURTUNITIES

93

May tie up or liaison with major showrooms, computer centers & restaurant.

Huge publicity of Mountain Dew, Lemon Miranda /Slice has created a lot of demand.

Company has brand equity in the eyes of customers, so its new products can easily penetrates in the market.

Untapped market.

THREATS

Threat of competitors new brand entry in the market in near future.

Restrictions made by Govt. agencies that soft drinks are harmful & non-nutritive.

Natural juice are now available whose price are less or same as soft drinks.

94

CONCLUSION

95

CONCLUSION

1. After visiting nearly 200 outlets I found that Pepsi & its Brands is not doing a good job in Greater Noida Region. It is clear that Pepsi (58%) has lagging Coke (42%) in the soft drink market in Greater Noida region. If we compare it with Signage or display material than Pepsi has an edge over coke.

2. At this time it is solely depends on the retailer which brand he offers to the consumer? Although the company has been unable to satisfy the retailers. The company must take immediate steps in order to resolve its disputes with these retailers.

3. It was also found that the schemes that are brought up in the market by Pepsi & Coke after every couple of day is not making any net effect on the sale of Cola, whereas one is cannibalizing others market only.

4. It was also seen that Pepsi brand is better sold than coke. But it is Thumsup, which is making the major difference in the market.

5. The sale in age wise section, it was found that 200ml is sold in all the age groups with same frequency but 300ml is sold mostly in 16 to 45yr. of age group where as CAN is sold in hi younger generation only. Finally 2lit. Are used only for family or party purpose.

6. It also seen shopkeeper does not have correct information about the schemes which company made for their benefit. It’s necessary that they should get all information as soon as so, that they use those benefit. It also beneficial to encourage new shopkeeper.

96

LIMITATIONS

97

LIMITATIONS

Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices.

Weather conditions were not favorable.

Some of the respondents were not co-operative & many seem to be having no interest.

The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out.

Time limitations.

Area was specified.

It is extremely difficult to persuade retailer to respond to questionnaire.

The retailer knows us as people from Pepsi there by the responses could have been biased.

I had lack of knowledge about the product of the local market.

The company does not provide any financial assistance.

The time allowed for the project was very short (8 weeks). It was impossible to study deeply in that short period.

There was the staying place hearer to local market.

.

98

RECOMMENDATIONS

99

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. These days younger generation is looks to prefer Mountain Dew for thrill , which having good sign for pepsi Brand.

2. Company should appoint competent & honest salesman so that they could provide schemes to the entire retailer’s & 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 there dissatisfaction But not proper steps taken to resolve those problem. Marketing Management should sort some solutions to this major problem of replacing burst bottles.

7. All bottle should be supply in market systematically according to there batches so that bottle should not be expire before selling to customer. These should also be checked at the time of issue of goods from the distributor’s godown to the respective routes.

8. Company should try to give some credit facility to the distributors so that they get motivated because most of the time shopkeeper looking for credit.

100

9. Credit facility for retailers should be provided to increase the sales in retail area.

10. Proper feedback system should be developed by ensuring regular visits & check randomly at the various outlets.

101

BIBLIOGRAPHY

WEBSITES:

www.pepsi.com

www.pepsico.com

www.jaipuriagroup.com

www.rkjworld.com

BOOKS:

Marketing Management- Radha Swami/ Nam kumari

Research Methodology-C.R.Kothari

Principles of Marketing-P. Kotler & Armstrong

NEWS PAPERS:

The Times Of India

The Economics Times

Hindustan Times

Business Today (July edition)

102

ANNEXURES

103

LIST OF ANNEXURES

QUESTIONNAIRE Questionnaire related to academic purpose, which is prepared to take feedback from retailers.

Name of outlet -

Address -

Contact person with phone no-

Type of outlet:-

Glossary, kiosk, provision store, eatery, other.

Present share of your outlet

Pepsi Coke

You are interested to sale

Pepsi Coke

Reason:-

Salesman ‘s behavior

What are demands of various packs of Pepsi

Pack Demand in %

200ml

250/300ml

500ml

104

1000ml

2000ml

Demand of different customer group

Group Pepsi Coke

Male _____ _____

Female _____ _____ Children

Do you get the delivery at right time?

Yes No

Are you happy with companies’ distribution channel?

Yes No

Which of the company you feel have better distribution network?

Coke -

Pepsi -

Others -

Do you get the benefits of daily schemes launched by the company?

Yes No

Do you receive the ordered quantity?

Yes No

105

Do you want Salesman to be changed at regular intervals?

Yes No

Companies’ Officers visit time to time?

Yes No

Which flavor is more demanded?

Pepsi -

Mirinda-Orange -

Mirinda-Lime -

Mountain Dew -

7UP -

Slice -

Is company responsive to your complaints?

Yes/No

The cooling machine is :-

Your own / Pepsi’s / Coke’s

Is any survey done by other soft drink company?

Yes/No

Are you satisfied with the brands of Pepsi?

Yes / No

Do you get proper scheme at right time?

106

Yes / No

Does coke offer better then Pepsi

Yes / No

How many times delivery van comes?

Ones in a day -

In alternate days -

Once in a week -

Any other, please specify -

Your recommendations about Pepsi Company?

Any suggestion

107

108