Pepsico Final Ppt

MARKET SURVEY OF PEPSICO RETAILERS ON DISPLAY

EFFECTIVNESS

By: Jamaal Kkhan

Jayawant Institute of Mgmt. Studies, Pune-33

Presentation Outline:

Company Overview

Objectives of the study

Products offered (brands)

Scope of the study

Research design & Methodology

Data Analysis & Interpretation

Findings of the study

Recommendations & Conclusion

Company Overview

International company – offers convenient snacks, foods and beverages

PepsiCo entered in India in 1989.

43 bottling plants in India, of which 16 are company owned and 27 are franchisee owned

Market >500 varieties of food & beverage products in > 200 countries

market capital = 107.19bn US$ (2008-09)

Revenues >US$ 39bn (2007-08)

Over 198,000 employees (2008-09)

CEO : Mr. Sanjeev Chadha.

India Headquarters : Gurgaon.

Objectives of the study

To find out the most popular brand of PepsiCo &

satisfaction level of its retailer.

To check out the Plano gram (POG) norms, whether

retailer followed it properly or not.

To find out that proper merchandising & display of

the brands are they effective or not & relation

between company & its retailer.

To help the company in increasing its sales &

finding out the benefits of Visi-charging.

Products Offered (Brands)

Frito Lay Brands

- snacks, potato & corn chips, salsa and dips etc

Pepsi-Cola brands

- carbonated drinks, water, coffee

Gatorade brands

– drinks for sports professionals

Tropicana brands

- juices

Quaker Brands - cereals, oatmeal bars

Scope of the study

The training in the organization is very important for a student

who is undergoing with such course. This course is not the

answer for the entire problem which arises in the practical field.

There is no certain formula for any particular problem but the

aim of this study is to develop the ability of decision making. A

right decision at right time itself helps an organization to run

smoothly.

This training in an organization given an idea how decision are

taken tact fully when any problem comes to an executive. So

the way of problem right decision making and knowledge of

different type of marketing activities give much importance to

the study. Though only in two months it was not possible to

understand it so deeply but an overall idea could develop.

Research design & Methodology

Research Type:-

Exploratory research.

Data collection technique:-

1) Primary Data :-

Questionnaire Method.

2) Secondary Data:-

Website

Books & company publications.

Contd……

Sample description:-

1. Sampling technique:-

non-probability sampling (judgment)

2.Sample size:-

100 retailers supplying PepsiCo brands in Kanpur

south.

Sample analysis was done by means of statistical tools.

Data Analysis & Interpretation

There are more than 200 outlets are exist in both

area including Rawatpur, Pandu nagar & Ashok

nagar but due to time constraint those outlets are

given to me by my project guide in PepsiCo which

are not performing better up to the mark of

PepsiCo’s guidelines. In Ashok nagar area only 48

outlets are assigned to me & remaining outlets I had

visited were under the aegis of Rawatpur & Pandu

nagar.

Contd……

Areas covered by

me are

Area No. of outlet

Ashok nagar 36

Rawatpur 47

Pandu nagar 17

Total 100

Outlet type Respondents %age

Convenience 38 38

Grocery 45 45

Eatery 17 17

Total 100Type of outlet

Interpretation: from the above chart we can conclude that grocery shop

followed by convenience store are having majority of PepsiCo outlet.

Table 1. Most profitable brands

Brands Respondents %age

Pepsi 08 08

Mirinda 27 27

7up 15 15

Mountain dew 43 43

Slice 07 07

Total 100

Interpretation: from the above chart we can observe that Mountain

Dew(45%) followed by Mirinda (27%) is the leading brands (in terms of

sales) of PepsiCo in Kanpur south.

Table 2. Effect of advertisement

on sales.

Option Respondents %age

Yes 66 66

No 34 34

Total 100

Interpretation: The above pie chart suggests that sales of PepsiCo brands

are affected by advertisement campaign.


0 times 07 07

1 times 12 12

2 times 35 35

More than 2 times 46 46

Total 100

Table 3.Seasonal shortage of

popular PepsiCo brands.

Interpretation: From the above pie chart it is clear that majority of the retailer

faces shortage of soft drinks 2 or more than 2 times.

Schemes Respondents %age

Free bottles on crate 48 48

Monopoly discount 31 31

Brands display scheme 06 06

Target based forfeit 15 15

Total 100

Table 4. Scheme attraction,

provided by PepsiCo.

Interpretation: The above chart clearly shows that 48% of the retailers like free bottles

scheme followed by 31% who prefer monopoly discount.

Behavior Respondents %age

Excellent 03 03

Good 12 12

Satisfactory 41 41

Poor 31 31

Very poor 13 13

Total 100

Table 5. Behavior of PepsiCo

officials.

Interpretation: It is clear from the above chart that behavior of officials is not up to the

mark. Only 56% retailers are satisfied (including excellent, good & satisfactory behavior).

Performance level Respondents %age

Excellent 21 21

Good 58 58

Satisfactory 09 09

Poor 09 09

Very poor 03 03

Total 100

Table 6. Performance level visi-

cooler.

Interpretation: from the above chart we can conclude that performance level of

visi-cooler is up to the mark. It is happen due to frequent visit of technician.


Strictly followed 04 04

Wastage of time 27 27

Followed with

some changes

45 45

Useless 24 24

Total 100

Table 7. Retailer’s opinion on

planogram (POG).

Interpretation: The above chart shows activation of planogram in which 45% of the

retailers had said that some changes are necessary followed by 27% of the retailers who

said that it is wastage of time.

Visi charging status Respondents %age

0-20% 02 02

21-40% 34 34

41-70% 45 45

More than 70% 19 19

Total 100

Table 8. Status of visi-charging

on avg. customer visit.

Interpretation: from the above chart we can conclude that avg. visi charging is lies between

41% to 70%. This is not up to the avg. level fixed by PepsiCo.

No. of crates Respondents %age

1 to 2 07 07

2 to 4 12 12

4 to 6 58 58

More than 6 23 23

Total 100

Table 9. Daily Sales of PepsiCo

products in crates in a day.

Interpretation: from the above pie chart we can assume that 58% of the retailers sold the

4 to 6 crates per day followed by 23% retailers who sell more than 6 crates.

Session Respondents %age

Jan. to mar. 00 00

April to June 56 56

July to sep. 44 44

Oct. to dec. 00 00

Total 100

Table 10. Peak session for soft

drink sale.

Interpretation: it is clear from the above chart that the sale of PepsiCo products

is more in April to June session

Promotional effectiveness Respondents %age

Excellent 00 00

Good 27 27

Satisfactory 51 51

Poor 19 19

Very poor 03 03

Total 100

Table 11. Effectiveness of Sales

promotion technique of PepsiCo

regarding Nimbooz.

Interpretation: it is inferred from the above table that the Sales promotion technique of

its newly launched product Nimbooz is satisfactory in the eyes of retailers.


Highly increased 37 37

Medium increased 29 29

Low increased 20 20

No effect 14 14

Total 100

Table 12. Sales impact of

prime location of visi-

cooler.

Interpretation: from the above chart we can conclude that the location of visi-cooler in

outlet play very vital role in improvement of sales.

Crate display Respondents %age

2 to 4 27 27

4 to 6 42 42

6 to 8 20 20

More than 8 11 11

Total 100

Table 13. Display of crates as a part of

Merchandising in outlet.

Interpretation: from the above chart we can infer that 42% outlets are displaying the 4

to 6 crates as a part of merchandising.


1 to 2 days 21 21

2 to 3 days 15 15

3 to 4 days 19 19

More than 4 45 45

Total 100

Table 14. Problem solving approach

of PepsiCo officials.

Interpretation: from the above chart we can conclude that PepsiCo is not considering

much focus on retailer’s problem.


Yes 24 24

No 68 68

Can’t say 08 08

Total 100

Table 15. Satisfaction from execution

done by PepsiCo.

Interpretation: from the above chart we can infer that 68% of the retailers are not

satisfied by the execution done by PepsiCo at their outlet.

Findings of the study

On the basis of questionnaire I have found that sale of

mountain dew is 43%. Mirinda 27%, 7up 15%, Pepsi 8% & slice

7% respectively.

46% retailers faced the shortage of popular brands more than 2

times, 35% 2 times & 12% 1 time.

48% retailers like free bottles scheme, while 31% & 15% like

monopoly & target based benefit respectively.

I was also observed that official’s behavior is not up to the mark

because 31% & 13% retailers had measure the performance

level up to poor & very poor respectively.

58% respondents have said that their visi-cooler’s performance

is good, while 21%, 9%, 9%, & 3% said excellent, satisfactory,

poor, very poor respectively.

Contd…..

About planogram, 45% said some changes are necessary, 27%

said wastage of time, 24% said useless while 4% respondents

agree that it should be strictly followed.

58% of the respondents sells 4 to 6 crates in a day, while 23%

retailers sells more than 6 crate each day.

Peak session of sales of soft drink is April to June, 56%

retailers agree with this statement; while 44% said that peak

session is July to Sep.

There is a very good response of newly launched product

Nimbooz.

37% of the retailers have said that prime location impact is very

important in improvement in sales.

Contd…..

42% of the retailers display 4 to 6 crates as a part of

merchandising, while 27%, 20%, & 11% are followed by

displaying 2 to 4, 6 to 8, & more than 8 respectively.

45% of the retailers are unhappy with PepsiCo because they

are very careless about sorting out their problem.

I have found that 68% of the retailers are not satisfied with the

execution done by PepsiCo.

Recommendations

PepsiCo should start the manufacturing of its own packaged

water pouch under the brand of Aquafina so that there will be

no problem of visi-impurity. From this step PepsiCo’s product

line as well as its revenue would be increased.

Company should motivate their competent and honest

salesman so that they could provide schemes to the retailers &

make them happy.

Supply van from warehouse should be departed on time so

that there would be no delay in delivery of product. From this

step retailers will be happier.

Proper feedback system should be develop by its officials &

ensure a randomly visit of outlet by them. It will help to build a

strong & healthy relationship between company & retailer

Contd…..

It is often seen that some salesman’s don’t intimate schemes

to the retailer & few of the retailer complaint about it. So there

should be frequent visits of Customer Executives to their

respective areas to keep the shop-keepers benefited with

various schemes.

Most of the retailers are complaining about non-fulfillment of

commitment regarding their leakage & breakage. Company

should make sure that the retailers get fulfill their commitment

on this issue so that they will be satisfied.

PepsiCo should try to give some credit facility to the distributors

& retailers so that they can bring brands more than their credit

worthiness & try to sell maximum no of SKU from their outlet.

Conclusion

After visiting nearly 100 outlet I found that Pepsi and it’s brands

are not doing a good job in Kanpur. It’s clear that Pepsi(61%)

has lagging coke (39%) in the soft drinks market at Rawatpur in

Kanpur (south) area .If we compare it’s signage and display

material than Pepsi has an edge over coke.

At this time it is completely depend on the retailer that which

brands has offers to the customers? Although the company has

been able to satisfy the retailers. The company must take the

immediate step in order to resolve it’s dispute with these

retailers.

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.

Contd…..

It was also seen that Pepsi brand is better sold than coke, but is

Thumsup, which is making the major different in the market.

The sale in age wise section, it was found that 200 ml is sold

the age group with same frequency but 300 ml is sold mostly in

25-45 years of age group where as CAN is sold in high younger

generation only. Finally 2 lit. are used only for family or party

purpose.

The study reveals the immediate steps are not taken in the

replacement of damaged or breakage goods. The rival

company. Coca-Cola is very quick in this area and efficient

also.

The study reveals that the commitment of supplying gift items

or incentive is not carried out on scheduled time.

Thank You

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Pepsico Final Ppt

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