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RESEARCH METHODOLOGIES

CARDIFF METROPOLITAN UNIVERSITY

BUSINESS PERFORMANCE AND OPPERTUNITIES OF PEPSICO IN INDIA

SUBMITTED BY : SAIDALAVI CHERNGODAN

COURCE : MBA

SEMESTER : TWO

ID NO : 0120DODO1011

LECTURER : Dr. KUI JUAN

MODULE TITLE : RESEARCH METHODOLOGIES

SUBMISSION DATE : 15 - 08 - 2012

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Table of Contents

1.0 INTRODUCTION...........................................................................................................................4

1.1 BACKGROUND.........................................................................................................................4

INDUSTRY PROFILE........................................................................................................................4

COMPANY PROFILE........................................................................................................................6

1.2 PURPOSE AND PROBLEM STATEMENT..............................................................................8

2.0 RESEARCH QUESTIONS.........................................................................................................8

3.0 RESEARCH OBJECTIVES........................................................................................................9

3.0.1 RESEARCH FRAMEWORK OR MODEL...........................................................................10

3.0.2 EXPECTED OUTCOMES.....................................................................................................10

4.0 LITERATURE REVIEW..............................................................................................................12

4.1 PRODUCT DIFFRENCIATION...............................................................................................12

4.2 COMPETITION........................................................................................................................13

4.3 CSR ACTIVITIES FOR SUSTAINABILITY...........................................................................17

4.3.1 PARTNERSHIP WITH FARMERS............................................................................................18

4.3.2 WATER REPLENISHING........................................................................................................19

4.3.3 FOR ENVIRONMENT............................................................................................................20

4.4 INNOVATIVE MARKETING PRACTICES............................................................................23

ADVERTISMENT...........................................................................................................................25

5.0 RESEARCH METHODOLOGY...................................................................................................28

5.1 RESEARCH DESIGN...............................................................................................................28

5.2 SAMPLE DESIGN....................................................................................................................30

5.3 DATA COLLECTION..............................................................................................................31

5.3.2 COLLECTION METHODS......................................................................................................32

SUMMARY OF RESEARCH DESIGN...............................................................................................33

5.4 DATA ANALYSIS...................................................................................................................33

6.0 ETHICAL ISSUES........................................................................................................................34

7.0: GANTT CHART..........................................................................................................................35

8.0 REFERENCES..............................................................................................................................36

9.0 APPENDIX...................................................................................................................................40

QUESTIONNAIRE.........................................................................................................................40

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LIST OF TABLES

SI NO TABLE NAME PAGE NO1.1 MARKET SIZE AND ANNUAL GROWTH OF

DIFFERENT BEVERAGES IN INDIA4

2.1 DIFFERENT BRAND PRODUCTS OF PEPSI IN INDIA 132.2 ANALYSIS OF PEPSI COMPETITORS IN INDIA 14

2.3.1 COMMUNITY WATER INITIATIVE PROGRAMME IN STATES

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2.3.3 PEPSICO INDIA CSR PARTNERS 222.4.1 TOP 5 ADVERTISERS IN INDIA 2010 253.1.1 DIFFERENCE BETWEEN EXPLORATORY

ANDCONCLUSIVE RESEARCH

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LIST OF FIGURES

SI NO FIGURE NAME PAGE NO1 Market Growth Rates Of Indian Soft And Aerated Drinks 62 FINANCIAL SNAPSHOT OF PEPSI 73 PEPSI PRODUCTS IN INDIA 124 PORTER’S 5 FORCE MODEL 155 Top 5 brands In India 2010 166 THREE SPHERES OF SUSTAINABILITY 187 Research Onion 288 TYPE OF DATA COLLECTION 32

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1. 0 INTRODUCTION

1.1 BACKGROUND

INDUSTRY PROFILE

The history of Indian soft drink industry go back to early 1990’s, during the time soft

drinks industry was under domestic enterprises like Campa, Thums up, Limca and so on. In

this period of time Indian government allowed multinational Companies to enter in Indian

market as a part of globalisation. This policy led to enter major soft drinks players like

PepsiCo In (1988) and re enter of Coca Cola in (1993) to Indian market. Now Approximate

125,000 employed in soft drink sector of India. According to the research (Research and

Markets, 2012) in each year about 120 Billion litters of beverages buying Indians. 75% of

customers prefer non alcoholic beverages like carbonated and other non carbonated such as

fruit drinks, coffee and so on. In case of overall soft drink industry Cola drinks consumed

almost 65% in Indian market. In 2010 total revenue of $3.8 billion generated by Indian soft

drink industry, within the contribution of $1.9 billion by carbonated drinks. So it can say that

sparkling and still beverages are the most selling beverages in India. It is estimated that by

the end of 2015 it would be the market value of $5.9 Billion. Indian food and beverage

industry is the targeting point of big players for huge revenue. Especially in the case of non

alcoholic drink sector India achieving tremendous growth in past years. It s because mainly

the growth of population especially middle class, it is evident that it is rising about 15% and it

will become 850 million potential customers and quick urbanisation as well as the rising

income of people.

TABLE 1.1: MARKET SIZE AND ANNUAL GROWTH OF DIFFERENT BEVERAGES IN INDIA

Beverages Market size Market growth

(Annually)

Fruit beverages 180 million (Rs 5,000 30%

5

crore)

Carbonated drinks $1.5 Billion (Rs 6,000

crore)

10-12 per cent annually

Juice based drinks $.25 billion 35-40 per cent annually

Energy beverage industry $230 million Rs 500 crore grow at a CAGR of 25%

Beer market 7-8 %

Milk based beverages 2.7 %

Hot beverages Rs 8,500 crore 1-2 per cent annually

(Standard, 2012)

According to ministry of food processing industry, it says that in annually soft drink

industry increasing 6-7 % growth with the consumption of 5-6 bottles. It is evident that

(Standard, 2012) India stands third biggest consumer market of beverages (10%) after USA

and China. It shows that in between 2008 and 2012 sales growth became more than 60

percentages. In the case of per capita utilisation of packaged drinks became 2.6 litre (2000) to

8.7ltr in the year of 2012. So it can say that huge growth of Indian beverage industry. But per

capita consumption of carbonated drinks (< 3 litre per annum) still remains low and need to

improve. The major players of Indian soft drinks industry are PepsiCo, Coca Cola Company,

Kraft food, Nestle, Apple Valley Group, Rasna international, Dabur India Ltd, Red Bull India

Pvt Ltd and so on, with the brands of Thumps Up, Limca, Pepsi, Sprite, Coca Cola, Mirinda,

7UP, fanta and so on. (India, 2012)About 85 % Indian market domain under PepsiCo and

Coca Cola directly and franchise with huge market share. However here is a research doing

about the current business performance and future opportunity of PepsiCo in Indian context

with the analysis of their competitors.

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FIGURE 1

1990-91 to 1996-97

1996-97 to 2001-02

2001-02 to 2006-07

2004-05 to 2009-10

2009-10 to 2014-15

0123456789

10

Market Growth Rates Of Indian Soft And Aerated Drinks

Years

Gro

wth

in p

erce

ntag

e

(MOFPI, 2012)

COMPANY PROFILE

PepsiCo is a multinational Company which operating in more than 200 countries head

quarter purchase in USA. According to the Company they are one of the leading food and

beverage Company with annual revenue of $60 billion and nearly 285,000 employees around

the globe. Company founded by Donald M. Kendall in the year of 1965 in Chicago. Now

Company has wide variety of global product portfolios includes 22 brands in food and

beverage sector. In beverage industry their Major products are Pepsi and Diet Pepsi, 7UP,

Mountain dew, Tropicana, slice, Aquafina, Nimbooz, Mirinda and so on. Global food

businesses are Aliva, Quaker oats, Fritos, Lays, Doritos, Cheetos and kurkure and so on. This

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diversified products are the core strength of PepsiCo when compare with their competitors

with present dynamic competitive business environment. (PepsiCo, 2012)

FIGURE 2 FINANCIAL SNAPSHOT OF PEPSI

QFNA LAF AMEA EU FLNA PAB0

5000

10000

15000

20000

25000

Net revenue of PepsiCo

20092010

Axis Title

Net

Rev

enue

in U

SD

Their mission focuses to become world’s first food and beverage Company with

fairness and integrity. Their vision stands for create a healthier tomorrow than today and to be

committed all aspect of world with global sustainability. (PepsiCo, 2012)

PEPSICO IN INDIA

India had strict regulation for foreign direct investment before 1990. But later India

allowed to foreign companies and lifted strict rule in order to invest in Indian market. In this

same period of time PepsiCo first entered to Indian market with the joint venture between

Voltas India Ltd and PAIC. But later 1994 Pepsi closed the agreement and became an

independent enterprise here. In a short period of time they became principle and greatest

booming food and beverage business in this market.  PepsiCo India’s various portfolio

consist of both carbonated and non carbonated popular beverage brands like Pepsi, slice,

Gatorade, aquafina, 7UP, Mountain dew, Tropicana and Nimbooz. At same time PepsiCo

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came up with differentiated food products like Uncle chipps, Kurkure, Quaker Oats, Lay’s,

Aliva and Lehar namkeen and so on. (PepsiCo India, 2012) In this present scenario Pepsi

facing high competition from industry competitors like Coca Cola, Nestle, dabur and so on.

Pepsi has dominating 31% of market share with annual revenue of 57.8 Billion. Even though

Coke has 42% market share Pepsi’s multiple businesses generating more revenue than Coke

(35.2B) in Indian market. (caspost, 2012) Now Pepsi India develop in to the countries major

food and beverage business and also leading PepsiCo global growth with contribute the huge

revenue from India.

1.2 PURPOSE AND PROBLEM STATEMENTPurpose: To study the business performance and opportunities of PepsiCo in Indian food and

beverage industry.

Problem Statement: An analysis of the business performance and opportunities of PepsiCo

in India.

2.0 RESEARCH QUESTIONS

2.1 How product differentiation strategy helped Pepsi Co in order to increase market share

in India

2.2 What are the strategies Pepsi is implementing in order to overcome the high competition

from competitors in Indian beverage industry.

2.3 How CSR activities reflected positively to retain good relation with PepsiCo’s Indian

stakeholders.

2.4 What are the innovative marketing practices and how technological changes helped

business in India

2.5 How Pepsi reacted to wards environmental issues which formed due to their business

practices.

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3.0 RESEARCH OBJECTIVES

3.1 To identify the extent to which product differentiation strategy supported PepsiCo in

terms of increase market dominance in India

3.2 To analyse the factors of competition and study about the actions they practicing in order

to make competitive advantage in Indian soft drink industry

3.3 To find out PepsiCo’s CSR activities and analyse how far it reflected positively to the

Indian community stakeholders.

3.4 To explore the strategies and practices regard innovative marketing concept of Pepsi

3.5 To investigate the environmental problems and analyse the risk management strategies of

PepsiCo in Indian context.

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3.0.1 RESEARCH FRAMEWORK OR MODEL

DIFFRENCIATI

ON

COMPETETION

BUSINESS PERFORMANCE AND OPPORTUNITIES OF PEPSICO IN INDIA

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CSR AND

SUSTAINABILITY

ENVIRONMENTAL

ISSUES

3.0.2 EXPECTED OUTCOMES

As a multinational Company’s research project, it would benefited both academic career and

practically. In career side, it will contribute the skills in referencing and research, to create

planning, skill for critical evaluation, to study the theories and its application and also to do

survey research in many ways and so on.

In practically, it will help support to forecast threats and opportunity on the light of

current trends help to take quick decision making and problem solve, to craft strategic

interventions on the basis of study.

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4.0 LITERATURE REVIEW

4.1 PRODUCT DIFFRENCIATION

According to (KOTLER, et al., 2009) product differentiation is a strategy that firm focus to

make diverse products with particular features and marketing to current and diversified

marketing segment. PepsiCo is the most recognisable brand in India and they have large

number of product portfolio in both food and beverage segments. Product differentiation is a

vital marketing strategy which Pepsi using as a core competence when compare to their

competitors in Indian market. According to PepsiCo India (2011) due to the extension of

product portfolio especially in to food sector, the past two year India give highest volume

growth in globally. Due to the highest level of literacy Indian people now more concern about

healthier food products, here Pepsi could catch the market share with their different range of

healthier and fun products. Low growth of carbonated drinks persuaded PepsiCo in 1999 on

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words to turn to food related products like snacks; chips based products, oats, and cracker. In

this category their differentiated products are lay’s, it is the leading salty snack branded

product with low fact, and also lay’s potato chips, Cheetos extruded snacks, Quaker Oats and

Uncle chips. Healthier products like fibre breakfast cereal, roasted snack category like aliva

and traditional snacks from Kurkure and lehar brands. It was the big milestone of PepsiCo

differentiated strategically interventions when compare with their competitors in this market.

FIGURE 3 PEPSI PRODUCTS IN INDIA

According to (PepsiCo India, 2012) due to the product diversification past two years

Indian food and beverage sector gave highest volume growth to PepsiCo in globally. In the

case of beverage products, due to the low growth of carbonated cola industry they diversified

in to other ready to drink like fruit based juices, bottled water, and tea and so on. In this

category they launched Tropicana, Gatorade, Aquafina, Slice, Nimbooz, mirinda and so on.

(PepsiCo India, 2012) This innovative differentiation strategy actually led to the rapid growth of

revenue as well as market share in Indian food and beverage Industry. According to

(Standard, 2012) PepsiCo Indian snacks and beverage businesses grew by dual digits volume

in the last three month year ended 31 March 2012. Compared to previous year net revenue

grew 12percent growth with a net revenue of $12.43 billion. So it can be inferred that Pepsi’s

food business sector contributing a major income and it resulted to increase their market

share in India. As per the research it can say that on the basis of their differentiation in the

future Pepsi has optimistic opportunity here and it would be make huge revenue in coming

years.

TABLE: 2.1 DIFFERENT BRAND PRODUCTS OF PEPSI IN INDIA

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4.2 COMPETITION

In this present Of course Indian food and beverage industry also struggling with high

competition among big players like PepsiCo, Coca Cola, Nestle, Rasna and so on. After the

re-entry of Coke in to India, Pepsi faced neck to neck competition from Coke. Coke came up

with the acquisition of major Indian brand Thums Up in order to compete with Pepsi. But

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Pepsi also took a great strategically turn through the acquisition of 7UP. It was the beginning

of Cola battle in India. Now Pepsi and Coke is not only competing with their current products

but also in the way of marketing, domination of new market, technological innovation and of

course the for the long term sustainable growth in this huge market.

TABLE: 2.2 ANALYSES OF PEPSI COMPETITORS IN INDIA

Rasna International Nestle PepsiCo India Coca Cola India0

10

20

30

40

50

60

ANALYSIS OF COMPETITION

According to the analysis, even though Coke has a prime market share in India

over PepsiCo, but still they growing over Coke in terms of the revenue and volume growth.

Here it can understand that Pepsi getting competitive advantage as the result of their multiple

food and beverage products introduction. Pepsi’s strategically implementation includes

product differentiation, local operation through bottling, local operation through bottling,

heavy investment, focus of snack and food segment, low prize and so on. (BUSINESS

STANDARD, 2012)

FIGURE: 4 PORTER’S 5 FORCE MODEL

Five force analysis of competition about PepsiCo will help to identify the force of competition

NEW ENTRANTS

Threat of entrants- LOW

Need huge investment Required world-wide network Longer R&D process

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FIGURE: 5 Top 5 brands In India 2010

12%

14%

14%

25%

36%

Market Share

Coca Cola Thums Up Mountain DewMirinda Orange Pepsi

(EXCHANGE4MEDIA, 2012)

Industry Competitors

Coca Cola Company Kraft foods Rasna India ltd Nestle Dr. Pepper Snapple

other Local company

Suppliers

Suppliers bargaining power-LOW -Pepsi Bottling

partners Manufacturing

raw materials themselves

Substitute

Beer Companies Water Coffee Tea snacks

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According to the evident it can say that they doing their business in a high dynamic

competitive business industry, especially because of high competition from Coca Cola,

Nestle, Rasna and Kraft food. It is very essential to overcome the threat from rivalry and also

need to implement innovative strategy in order to make market dominance and keep

customers in a long term basis. When going through some research it can see that in India

Pepsi successfully competing and have Competitive advantages over their base competitors

Coca Cola. According to (caspost, 2012) Pepsi made increased growth in last year’s in regard

drinking water, growth in RTD tea, increased sales in healthier beverages, growth in

functional and Asian beverages.

When make a Comparative study with Coke their beverage brands may not make

much income, but it’s snack items helped to boom in Indian market. In food industry they

only has a low competitive rivalry from Dabur, Parle Agro, HUL etc. According to business

standard, in regards A&M study highlight that Pepsi is the fourth leading marketer in India

than Coke(5th) PepsiCo could predict and react the trend changes of India and they cunningly

move in to the different business catogary according to the taste and preference of Indian

customers. (BUSINESS STANDARD, 2012) PepsiCo India ranked 5th on the basis of

revenue $60 Billion from their snacks products and earns 30% income only from emerging

market like India. Hence in the future it can see that there is a big opportunity for them due to

the high population especially growth of middle class. According to the CEO Indra Nooyi,

they are investing aggressively in India rather than coke, such like the investment of coke in

China. Pepsi now started several new soft drink plants with their existing 40 plants. With

those all factors and high demand of fruit based drinks, low cost pricing strategy, availability

of skilled man power and managers in a competitive cost, infrastructure and technological

development and all other optimistic factors would help Pepsi for develop in future.

4.3 CSR ACTIVITIES FOR SUSTAINABILITY

In this 21st century in order to make a long term sustainable business growth

Companies have to make sure right thing what they do. People are highly concern not only the

business performance but also how companies intervention to keep the ethics side and add

value to their practices by keep the demands of their stakeholders as the part of corporate

social responsibility. It is the key drive to run business in a long term basis in this flexible

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business environment. The objective of CSR is to hold a commitment for the company’s

practice and to encourage a favourable attitude through its actions on to environment,

employees, customers, local community, government and also other dependence who related

to the business (TRIPLEPUNDIT, 2012). So as we know Pepsi is a manufacturing based

Company, water is the major ingredient (86-90%) and also water is using as a energy resource

for the operation. So Pepsi has core relation with their environment in regards business

activities. So they have to maintain a good relation with their community stakeholders like

environmental activist, social community and government in order to create a smooth run for

their business as well for a better environmental performance. Otherwise they might face high

external pressure from both Pressure group and government. It would be result to the strategic

drift and unsustainable in the Indian market.

FIGURE: 6

(EDU, 2012)

According to PepsiCo, (PEPSICO INDIA, 2011)their Indian mission is that “performance

with Purpose” which means (long term beneficial sustainable growth performance with

provide value to the societal and environmental goals. As a manufacturing Company they

utilizing a high amount of natural resources, but as the part of CSR activity Pepsi's continues

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effort to increase the environment performance overcome the problems to an extent. Their

CSR activities are;

4.3.1 PARTNERSHIP WITH FARMERS

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Partnership in 9 states with over 22,000 farmers

Support the growth of them through more earnings.

Contact farming for agri-sustainability

Provide insurance service with the partnership of ICICI India

Huge help for potato farming

Give low interest loan with tie-up SBI

Providing 360 degree support through buy back, modern

technological practices, high class seeds and also medical packages

(PEPSICO INDIA, 2012)

4.3.2 WATER REPLENISHING

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Saved and recharged 10.1Billion Litre fresh water in 2010

$ 8 million for “water credit” around India

Reusing, replenishing and recharging water

Became first company to achieve “Positive Water Balance” in India

In 2010 Saved(30%) water through Paddy farming

Decreased water usage ( 2.26%) in beverage plant and (2.8%) food plant.

Enhanced water availability to 130,000 people

Water saving through drip irrigation for potato

Community water recharge and protection projects.

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(PEPSICO INDIA, 2012)

(PEPSICO INDIA, 2011)

4.3.3 FOR ENVIRONMENT

Rubbish collection from house holds

Education and training campaign for 859 community to recycle waste

Eco-friendly waste renewed to organic manure

Launched PET plastic, tetra packs for easy recycle

Awareness programme in house-to-house

Evolved a self sustaining model

Reduced carbon footprint and GHG for better climate

Waste to wealth campaign achieved 465,000 families

(PEPSICOINDIA, 2012)

TABLE 2.3.1 COMMUNITY WATER INITIATIVE PROGRAMME IN STATES

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TABLE: 2.3.2 CSR ACTIVITIES OF PEPSICO IN ENVIRONMENTAL PROBLEMS

As per the analysis it can say that PepsiCo India care their community stakeholders

by giving values throughout their each activities. Pepsi also provides numerous benefits to

their employees, like healthier workplace condition and to customers through healthier and

high quality beverage and food products and also community through various kinds of

charities and so on. They are doing sustainable business practice with their four key areas of

sustainability which is human, environmental, performance and talent sustainability.

However Pepsi’s CSR activities helped to retain their customers and of course in future it will

help to increase the market dominance just because of now people considering and analysing

business not only the basis of their product but also how they meet and committed to their all

stakeholders expectations in everything they do.

TABLE 2.3.3 PEPSICO INDIA CSR PARTNERS

Name of Pepsi India CSR Partners ActivityThe Energy and Resources Institute implementation of watershed management

projects in Neelamangala and Uttaranchal

ADI-Alternative Development Initiative Partner in Watershed Management Projects in Kerala, Punjab and Maharashtra

Exnora Green Pammal Partner in Waste to Wealth Programmes

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CAP Foundation Partner in training and provide alternate livelihood options for Tsunami affected communities in Andhra Pradesh and Tamil Nadu.

Swashrit Society Partner in Get Active programmes, to promote active and healthy lifestyles among kids

Project Healing Touch Programme to provide ex-servicemen with sustainable livelihoods

Youthreach India Partner in People with Purpose programme

International Labor Organisation Partner in creating and implementing its HIV/AIDS Workplace Policy

(PEPSICO INDIA, 2012)

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4.4 INNOVATIVE MARKETING PRACTICES

PepsiCo is one of the founding father of innovative marketing and advertisement in

global as well as in India. In this high competitive business industry innovative

marketing practices is a key driver of business in order to make a high position in

customers mind. Inefficient marketing activities will led to the negative growth in the

particular industry especially in this high dynamic macro business environment.

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Technology plays an important role which help Pepsi to bring innovation in what

they do. Technology is changing very quickly with the changes of modern business

world. Let’s have a look how Pepsi increasing their brand image through marketing

techniques.

VENDING MACHINES

Free style vending machines is the new technological innovation which offers all Pepsi’s

brand beverages according to the customer preference. According to (TECH2INDIA, 2012)

vending machines provide 80 and more alternative customer options with one touch. This

consumer preference strategy helped to increase the sector leadership in India.

Web marketing strategies

There are number of indirect marketing they are doing with the support of

technology such like e-commerce, agreement with yahoo, quick information accessibility

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on demand. PepsiCo online stores make sure direct selling of the product. (DOCSTOC,

2012)

ADVERTISMENT

TABLE: 2.4.1 TOP 5 ADVERTISERS IN INDIA 2010

(EXCHANGE4MEDIA, 2012)

E- technology bring more innovative techniques in terms of promotional activities of

PepsiCo India, such like adds through Music sites, e-relationship management, social

networking, advertisement through online stores, design through electronic based

incorporated marketing advertisement and also with the help of ERP Software.

(media, 2012)

Social Networking

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According to (Ezinearticles, 2012) social networking is a form of relationship and

connecting system among a group of people and it also helpful to create a community. For

instance face book, twitter, Orkut and YouTube. Development of social networking is a big

milestone of technology as well as it plays a crucial role in corporate business world

especially in the field of promotion. In the case PepsiCo they have more than 100 Pepsi face

book fan pages, they advertising in face book, twitter and My Space it help to make a mass

advertisement people to people without any more effort. Through this advertisement people

can see latest product and features and they also become the part of promotional activity both

directly and indirectly.

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Partnership with celebrities

I think PepsiCo India’s core competence lie in the way they marketing especially their

promotional methods. They also made big budget agreement with sports events like (2010

World Cup), Indian celebrities and also major national cricket players. For instance in film

Shahrukh Khan, Saif ali Khan, kareena Kapoor and John Abraham and also from Cricket

Sachin Tendulkar, Dhoni, Sehwag, Harbajan Singh who are the major sponsors of PepsiCo

India. So as per the analysis it can inferred that PepsiCo using numerous innovative marketing

and promotional activities for continues market dominance in future Indian food and beverage

industry also (inspiration, 2012).

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5.0 RESEARCH METHODOLOGY

5.1 RESEARCH DESIGN

According (Geoffrey Marczyk, 2005) Research is an assessment of upshot of single or more

dependent variable on single or more independent variables.

This figure shows that information about a research study with various layers that should

access.

FIGURE 7: Research Onion

(Saunders, et al., 2006)

Research design can be divided in to two category they are;

1. Exploratory Research :

It is developed to examine the possibilities and issues to tell the result about chosen

investigation. It is mainly helpful to identify qualitative data than a quantitative research. It

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focuses to get secondary information from existing resources. For instance it will help to get

“Pepsi’s” qualitative analysis through observations. (Collis & Hussey, 2009)

2. Conclusive Research :

It is a type of research which design to get a conclusion from exact hypothesis in order

to make a better decision making. It can say that it focus to get quantitative datas of PepsiCo

than qualitative data. For instance it mainly finds the information from statistical evidence

through formal measurement. (Geoffrey Marczyk, 2005).

TABLE: 3.1.1 DIFFERENCE BETWEEN EXPLORATORY AND CONCLUSIVE

RESEARCH

(Courses, 2012)

Let’s start to prepare a conclusive research on PepsiCo; here I want to gather

quantitative data than qualitative in order to take a decision. However there are two type of

Conclusive research. They are,

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A. Descriptive Research

This is one of the most famous sorts of research method. It is a type of study based on

the position, and analyse the industry and competition. For Instance, to investigate the

number of competitors PEPSI has in Indian Industry. (DJS Research, 2011)

B. Causal Research

This type of research helpful to identify what variable is reasoned for another

problem or issue. It is actually the source and consequence between variables. For

instance high competition causes fall down of PepsiCo’s market share In India. (MJ

Research, 2008)

5.2 SAMPLE DESIGN It is about the decision of which sample should chose for the particular survey or study.

Sample design is a plan or procedure construct before data gathering to find a sample from a

available people. (OECD, 2006) Advantages of sample survey are;

cost efficiency

more realistic

deep study

time efficient

SAMPLING METHODS

Sampling methods are used to acquire a lesser quantity within a whole group of

population. It is useful to cost control, time efficiency in sample collecting etc (Cramster,

2012) sampling methods are classified in to Probability and non probability sampling;

PROBABILITY SAMPLING

A probability sampling is that to get equivalent opportunity for being included. This kind

sample enable researchers to approximate the number of sampling mistake is in current

research. Probability sampling is classified in to three; stratified sampling, systematic

sampling and multi stage sampling.

NON PROBABILITY SAMPLING:

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Non probability samples system is in order to take information from target population. It

normally do through a form of questioners, for example questionnaire provided to the

community who are the neighboring residents of PepsiCo manufacturing plant in India.

(media.wiley, 2008) It further subdivided in to three, such as Judgment sampling,

Convenience sampling and quota sampling. Here I prefer quota sampling for PepsiCo

through a sample of customers who represent the whole customers of a particular state. It

easy to get customer feedback without see each and every customers.

5.3 DATA COLLECTIONData collection is a vital part of all type of research. It usually do after the issue identification

and research design. This data can be primary data and secondary data.

Primary Data

Primary data are the fresh information which gathers through straight relationship in b/w

respondent and researcher. The ways of this collection is mainly surveys, interviews and so

on. For instance collect information from Pepsi’s employees through a survey.

Secondary Data

Secondary data are the second hand information which previously did some others it

exists in printed and web sources. For instance access the financial analysis of Pepsi

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FIGURE: 8 TYPE OF DATA COLLECTION

Data to be collected from two type of research;

DATA REQUIRMENTS PRIMARY SECONDARY

QUALITATIVE Interview

QUANTITATIVE Questionnaire Published Sources

5.3.2 COLLECTION METHODS

The methodology of my study is mainly on the basis of primary data research which

focuses qualitative type analysis. It will help to get direct information in more practical and

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timely from the current Pepsi customers and it would help to know the future opportunity in

India. These qualitative methods are also useful to get direct information, such like through

Pilot study and focus group interview.

SUMMARY OF RESEARCH DESIGN

SAMPLE UNIT: All the current Customers of PepsiCo who preferring their brand products

METHOD OF SAMPLE: Non Probability sampling- Quota sampling

SURVEY LOCATION: India

SAMPLE SIZE: 150

COLLECTION TYPE: Self Administrated Questionnaire Survey

DATA MEASUREMENT (performance/ opportunity)

PROBLEM:

To study on Business Performances and opportunities of PepsiCo India.

FACTORS:

PRODUCT DIFFERENCIATION

COMPETETION

CSR ACTIVITIES

MARKETING PRACTICES

5.4 DATA ANALYSIS

It is an important step which highlights the data like financial, statistical and subject

issues for the research. Here study focus with a number of tables, figures and diagrams used

for the analysis and comparison. (Geoffrey Marczyk, 2005)

36

6.0 ETHICAL ISSUES

Ethics is a certain code of conduct and policy that direct our activities and decide the

intention our life right thing what do. (Resnik, 2011) When conduct a research we should

follow some ethical behaviour like privacy and discretion, right of rejection, informed

sanction, do not discriminate partiality and plagiarism.

37

7.0: GANTT CHART

NO TASKS OCTOBAR NOVEMBER DECEMBER JANUARY

W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4

1 RESEARCH PROPOSAL SUBMISSION

2 PROPOSAL CONFIRMATION AND APPROVAL

3 LITERATURE REVIEW

4 RESEARCH DESIGN

5 QUESTIONNAIRE DESIGN

6 DATA COLLECTION

7 REFERENCES AND FINALISATION

8 REPORT WRITING AND SUBMISSION

BUDJET (In Rupees)

Travelling cost - 250

Electricity bill-180

Food and accommodation- 550

Miscellaneous cost- 350

Paper Cost- 100

38

8.0 REFERENCES

Adfoster, 2010. Primary and Secondary data-What's the difference?. [Online] Available at: http://www.adfoster.com/primary_secondary_data_what_s_the_difference[Accessed 10 April 2012].

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BUSINESS STANDARD, 2012. Consumers thumbs-up to Coke, Pepsi. [Online] Available at: http://www.business-standard.com/india/news/consumers%5C-thumbs-up-to-coke-pepsi/469321/[Accessed 11 AUGUST 2012].

BUSINESS STANDARD, 2012. THE NEW FRONTIER. [Online] Available at: http://www.business-standard.com/india/news/the-new-frontier/472228/[Accessed 12 AUGUST 2012].

caspost, 2012. Coke vs Pepsi Cola war. [Online] Available at: http://caspost.com/coke-vs-pepsi-115-years-of-the-infamous-cola-wars/3/[Accessed 04 August 2012].

Castillo, J. J., 2009. Probability Sampling and Randomization. [Online] Available at: http://www.experiment-resources.com/probability-sampling.html[Accessed 9 April 2012].

Collis, J. & Hussey, R., 2009. Business Research. 3 rd edition ed. United States: Palgrave Macmillan.

Courses, 2012. Difference between Exploratory and Conclusive Research?. [Online] Available at: http://engineering-courses.com/difference-between-exploratory-conclusive-research-2673.html#ixzz1r5AOK6Rc[Accessed 2 August 2012].

Cramster, 2012. Definition of Sampling Methods. [Online] Available at: http://www.cramster.com/definitions/sampling-methods/880[Accessed 10 August 2012].

DJS Research, 2011. What is Descriptive Research. [Online] Available at: http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=800&Itemid=64[Accessed 04 August 2012].

DOCSTOC, 2012. Marketing. [Online] Available at: http://www.docstoc.com/docs/74980198/PEPSI-COLA[Accessed 11 August 2012].

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EDU, V., 2012. WHAT IS SUSTAINABILITY. [Online] Available at: http://www.vanderbilt.edu/sustainvu/who-we-are/what-is-sustainability/[Accessed 12 AUGUST 2012].

ETHICS TRAINING RESOURCE GROUP, 2007. ETHICAL ISSUES IN HEALTH RESEARCH. [Online] Available at: http://epi.berkeley.edu/Ethics%20Training%20Manual.pdf[Accessed 6 April 2012].

EXCHANGE4MEDIA, 2012. EXCHANGE FOR MEDIA. [Online] Available at: http://www.exchange4media.com/News/Analysis.aspx?AnalysisID=29[Accessed 11 AUGUST 2012].

Ezinearticles, 2012. social marketing. [Online] Available at: http://ezinearticles.com/?What-Every-Financial-Institution-Should-Know-About-Social-Networking&id=4227199[Accessed 07 August 2012].

Geoffrey Marczyk, D. D. D. F., 2005. Essantials of Research Disign and Methodology. 2nd ed. s.l.:s.n.

India, m. o., 2012. Top soft drinks brand in India. [Online] Available at: http://business.mapsofindia.com/top-brands-india/top-soft-drink-brands-in-india.html[Accessed 02 August 2012].

inspiration, T., 2012. Pepsi advertising. [Online] Available at: http://theinspirationroom.com/daily/2011/pepsi-change-the-game-of-world-cup-cricket/[Accessed 13 August 2012].

Kothari, C., 2004. Research Methodology Methods and Techniques. 2nd ed. s.l.:New Age International Puplishers.

KOTLER, P., KELLER, K. L., KOSHY, A. & JHA, M., 2009. MARKETING MANAGEMENT. 13TH ed. NOIDA: PEARSON EDUCATION.

media.wiley, 2008. problem definition,exploratory research, and the research process. [Online] Available at: http://media.wiley.com/product_data/excerpt/86/EHEP0001/EHEP000186-2.pdf[Accessed 05 August 2012].

media, s., 2012. Pepsico and uniliver connect with customers. [Online] Available at: http://www.just-food.com/management-briefing/social-media-pepsico-and-unilever-aim-to-connect-with-consumers_id115810.aspx[Accessed 08 August 2012].

MJ Research, 2008. Causal Research. [Online] Available at: http://www.htm.uoguelph.ca/MJResearch/ResearchProcess/CausalResearch.htm[Accessed 7 AUGUST 2012].

MOFPI, 2012. soft and aerated drinks. [Online] Available at: http://mofpi.nic.in/ContentPage.aspx?CategoryId=548

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[Accessed 03 August 2012].

OECD, 2006. Sample Design. [Online] Available at: http://stats.oecd.org/glossary/detail.asp?ID=3852[Accessed 8 August 2012].

PEPSICO INDIA, 2011. CORPORATE CITIZENSHIP REPORT 2010-2011. STATEMENT FROM INDRA NOOYI, 13(13), p. 02.

PepsiCo India, 2012. Brands. [Online] Available at: http://pepsicoindia.co.in/Company/about-Pepsico.html)[Accessed 05 August 2012].

PEPSICO INDIA, 2012. ENVIRONMENTAL SUSTAINABILITY. [Online] Available at: http://pepsicoindia.co.in/purpose/environmental-sustainability/partnership-with-farmers.html[Accessed 12 AUGUST 2012].

PEPSICO INDIA, 2012. ENVIRONMENTAL SUSTAINABILITY. [Online] Available at: http://pepsicoindia.co.in/purpose/environmental-sustainability/replenishing-water.html[Accessed 10 AUGUST 2012].

PEPSICO INDIA, 2012. PARTNERS IN CSR. [Online] Available at: http://pepsicoindia.co.in/purpose/partnersincsr.html[Accessed 10 AUGUST 2012].

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PepsiCo, 2012. Our vision and mission. [Online] Available at: http://www.pepsico.com/Company/Our-Mission-and-Vision.html[Accessed 06 August 2012].

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Standard, B., 2012. PepsiCo rides on India's growth, 27 April, p. 2.

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TECH2INDIA, 2012. Pepsi introduces social vending machines. [Online] Available at: http://tech2.in.com/news/social-networking/pepsi-introduces-a-social-vending-machine/215942[Accessed 09 August 2012].

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9.0 APPENDIX

QUESTIONNAIRE

1. NAME …………………………………………………………

2. GENDER: [ ] MALE [ ] FEMALE

3 .AGE: [ ] 15-25 [ ] 25-35 [ ] Above 35

4 .STATUS: [ ] SINGLE [ ] MARRIED

5. OCCUPATION: [ ]

6. EDUCTION LEVEL: [ ] SCHOOL

[ ] DEGREE HOLDER

[ ] MASTER LEVEL

7. Do you prefer soft drinks daily?

[ ] yes [ ] No [ ] Never

8. Do you use PepsiCo brand products?

[ ] Yes [ ] No

9. Are you satisfied with PepsiCo Products?

[ ] satisfied [ ] Dissatisfied [ ] Neutral

10. Have you ever faced any quality issues of Pepsi?

11. Which kind of Pepsi products you prefer more?

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[ ] Cola Beverages [ ] Fruit based beverages [ ] Snack food products

12. Why do you like Pepsi Products?

[ ] prize [ ] Quality [ ] Taste

13. Do you think PepsiCo plants exploiting natural resources of India?

[ ] Agree [ ] Disagree [ ] Neutral

14. Is Pepsi committed to the local community and environment?

[ ] Yes [ ] No

15. Do you satisfied with PepsiCo’s CSR activities?

[ ] satisfied [ ] Dissatisfied

16. Your valuable comments and recommendation

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