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LOVELY PROFESSIONAL UNIVERSITY
DEPARTMENT OF MANAGEMENT
PROJECT REPORT OF SUMMER TRAINING
ONDistribution strategy of Pepsi and Retailers satisfaction
Submittedto Lovely Professional University
In partial fulfillment of the
Requirements for the award of Degree of
Master of Business Administration
UNDER THE GUIDANCE OF: SUBMITTED BY:Mr. Sanjay Jindal Raju SawLect. Management Roll No. : Q3002B49
Reg. No.:11004488
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
JALANDHAR NEW DELHI GT ROAD
PHAGWARA
PUNJAB
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Faculty Guide Certificate
This is to certify that the project report entitled Distribution strategy of Pepsi and
Retailers satisfactionat Varun Beverage Pvt. Ltd. Submitted by Raju Saw is a bonafied
piece of work done under my direct supervision and guidance. No part of this work has been
submitted for any other degree of any university. The data sources have been duly
acknowledged. It may be considered for the evaluation in partial fulfillment of the
requirement for the awards of degree of Master in Business Administration (MBA).
Date: Signature
Mr. Sanjay Jindal
(Lect. Management)
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DECLARATION
I Raju Saw, Reg No. 11004488 here by declare that the project entitled Distribution
strategy of Pepsi and Retailers satisfactionatVarun Beveragehas been personally done
by me under the guidance ofMr.Sanjay Jindal in partial fulfillment of Post Graduation
Program- during academic year-. All the data represented in this project is true & correct to
the best of my knowledge & belief. This work has not been submitted for any other degree /
diploma exam elsewhere.
RAJU SAW
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ACKNOWLEDGEMENT
I am indebted to my project guide Mr. Pranav anand who gave me guidance,encouragement and inspiration throughout the project. I am very grateful to him for
his support that enabled me to enhance my knowledge and helped to draft the report. I
also express my sincere thanks to Mr. Sanjay Jindal for helping me and guiding me
in completing my project.
All in all, it was the pleasant learning experience for me in varun Beverages Pvt. Ltd,
thanks to all seniors and staff for making it so memorable. It was their encouragement
that, support and co operation, which made me, give some meaning to my project.
Finally, I thank my parents for the encouragement and support given
to me throughout the project work.
(Raju Saw)
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TABLE OF CONTENT
Page. No.
Chapter-1 Executive summary 6
Chapter -2 Introduction 7
COMPANY PROFILE IN US 8-9
COMPANY PROFILE-IN INDIA 9-10
BEVERAGE INDUSTRY 11-14
KEY ELEMENTS OF THE TRADE 15
PRODUCT PROFILE 16
PRICING 17
PRODUCT AND PROFILE 18-19
CHAPTER- 3 DISTRIBUTION NETWORK 20
DISTRIBUTION CHANNELS 21
NETWORK DESIGN 22-23
DISTRIBUTION STRATEGIES 24-25
CHAPTER 4
OBJECTIVE OF THE STUDY 26
LITERATURE REVIEW 26-28
CATEGORY MANAGEMENT 29-30
RESEARCH METHODOLOGY 31-32
CHAPTER - 5 DATA ANALYSIS 33-41
MARKET FINDINGS 42
CHAPTER 5 SWOT ANALYSIS 43
CONCLUSION 44
LIMITATIONS 45
RECOMMENDATIONS/SUGGESTIONS 46
BIBLIOGRAPHY 47
QUESTIONNAIRE 48-51
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EXECUTIVE SUMMARY
The aim behind this project is to know Distribution strategy of Pepsi and retailers
satisfaction of Varun Beverage Pvt. Ltd., Mohan nagar; it was done mainly to know the
satisfaction level of the Retailer and different services provided by the industry.
We are well aware of the fact that in the Indian context, the demand for soft drinks in found
increasing substantially, mainly on account of the changing lifestyle, which has been
influenced by the growing influence of corporate sector on the living habits or society. The
growing middle close is found to the fascinated to the western style of living. This promotes
frequent consumption of soft drink produced by the multinationals. The two global giants viz.
Pepsi Company and coca cola have been dominating the market shares and making the
business environment more volatize for each other of course, find coca cola number one in
the area but the threat and challenges generated by Pepsi Co., have been found making the
tasks difficult.
Thus, the project done for the Varun Beverages was carried by conducting a market survey
of retailer and filling the questionnaire consisted of question dealing with the satisfaction
level of the Retailer by the availability of various product and services provided by the
industry.
Channels of distribution are an important aspect of marketing strategy. Channels chosen for
the companys products effect every other marketing decision. On 1 JUNE I started my
project under the guidance ofMr. Pranav Anand (C.E.). I have been allocated the area for
survey in Mohan Nagar (Ghaziabad) region.
Number of Retailers Covered: - 100
Market Area Of Mohan Nagar :-
1. SAHIBABAD
2. KARKAR GAON
3. JHANDAPUR
4.SAHIBABAD MANDI
5. SURYANAGAR6. VAISALI
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Introduction
HISTORY OF PEPSI
PepsiCo is a USA based company having its head quarters at New York with the net worth of
$30-40 million. The average sales of the company are approx 90 million bottles per month.
Pepsi made it first international move in Russia in 1959. During the Khrushchev era, within
32 years Pepsi emerged as the biggest competitor for Coca Cola. Pepsi is available in 155
countries.
In any soft drink, on the globe Pepsi food is one of the largest soft drink companies in the
world with its headquarter in New York. It was invented by Pharmacist Culab D. Baradham
in 1898 to cure the disease Dyspepsia. It is from this word that its name was related to
Pepsi. Soon it entered the American market as soft drink, which at that time mostly
dominated by Coca Cola, but soon Pepsi able to dominate the Cola market, and there after it
never looked back. Pepsi and Coca Cola are engaged in ferocious cola war that has taken the
whole world by storm.
Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production in May 1990
and soon it was giving the local contenders run for their money in soft drink market. It comes
out with dazzling marketing innovation that rocked the cola market, like selling the product
through function Pepsi outlets. Its advertisement agency was Hindustan Thomson
Association (HTA). Its advertisement budget for 1995-1996 was valued at Rs. 24 crores
which is likely to be increased manifold in coming years.
Pepsi food is one of the largest and best foreign investments in India. Till today it has
invested Rs. 500 crores in India to develop the local market. Pepsi has distributed exclusive
franchises in India to bottle its total product. There are 28 bottling plant of Pepsi in India.
Some are directly controlled by Pepsi and rest is under various franchisees.Pepsi stands 51st
position among the fortune 500 companies of the world. Its total capital is approx $3000
crores and total sales annually is worth $37 crores. Its total profit in the year 1996-97 was
worth Rs. 458 crores approx. The total number of employees engaged in the business is 45.25
lakhs globally.
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COMPANY PROFILE-IN U.S.
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27
billion and over 143,000 employees. The company consists of the snack business of Frito Lay
North America and the beverage and food businesses of PepsiCo Beverages andFoods,which includes PepsiCo Beverages North America (Pepsi-Cola North America and
Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo
International includes the snack businesses of Frito- Lay International and beverage
businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200
countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively
young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,
including Gatorade, in 2001.
Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain
Dew (Introduced by Tip Corporation in 1948). Frito-Lay, Inc. Fritos brand corn chips
(created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in
1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and
Rolled Gold brand pretzels (acquired 1961) Pepsi co is the world leader in the food chain
business. It consists of many companies amongst which the prominent one is Pepsi cola, frito
lay, Pepsi food international, pizza hut, and KFC and taco bell. The group is presently into
three most profitable businesses namely, beverages, snack foods and restaurants. It has scores
of big brand available in nearly 150 countries across the globe.
The beverages segment primarily market Pepsi diet, mountain dew and other brands
Worldwide and 7UP outside the U.S. market. They are positioned in close competition with
Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit from
international operation while same figure of Pepsi co. stand at 6%, the segment is also in the
bottling plants and distribution facilities.
The restaurant segment primarily consists of the operations of the worldwide pizza hut, Taco
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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
Lipton in response to cokes announced venture with nestle (Nestea) it has won over 30% of
the ready to drink tea market, a part of the so called "new age beverages segment. The
beverage industry has witness the phenomenal growth over the last few years necessitating
capacity increase and builds up of commensurate infrastructure to meet the business growth,
which is accordingly matched.
PepsiCos success is the result of:-
superior products
high standards of performance
distinctive competitive strategies
the high integrity of our people
COMPANY PROFILE-IN INDIA
PepsiCo entered India in 1989 and in the span of a little more than a decade it became the
country's largest selling soft drinks company. The Company has invested heavily in India
making it one of the largest multinational investors. The group has built an expansive
beverage, snack food and exports business and to support the operations are the group's 43
bottling plants in India, of which 15 are company owned and 28 are franchisee owned.
PepsiCo stays committed to providing its consumers with top quality beverages. Its diverse
portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up; Mirinda;
Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in various flavours;
Aquafina packaged drinking water; Gatorade plus local brands Lehar Evervess Soda, Dukes
Lemonade and Mangola.
PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack food
company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's
Potato Chips; Cheetos extruded snacks, Uncle Chips; traditional namkeen snacks under the
Kurkure and Lehar brands; and Quaker Oats.
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PepsiCo is one of the largest MNC exporters in India and its export business consist of three
categories - agri business, commodities and Pepsi system sales. PepsiCo has made significant
investments with the Punjab Agriculture University to develop a comprehensive
agrotechnology program that has helped thousands of farmers across India improve the yield
of their farms and the quality of their agricultural products. PepsiCo has leveraged its
knowledge in contract farming to develop seaweed cultivation in Tamil Nadu and has
partnered with the Government of Punjab to help farmers of the state through the utilization
of developed technology for citrus farming.
As part of its sustainable development initiatives, PepsiCo India has been a committed leader
in the promotion of rain water harvesting, water conservation recycling and the reduction of
effluent discharge. PepsiCo has also established zero waste centers and PET recycling supply
chains and assisted victims of natural disasters. PepsiCo stays dedicated in its endeavor to
develop community outreach programs by supporting rural water supply schemes,
administering medical camps in villages, providing computers to rural schools and creating
opportunities for women in rural areas through vocational training as an alternate means of
livelihood.
Soft drinks market in India
India is one of the top five markets in terms of growth of the soft drinks market. The per
capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum
in the year 2003. It is very low compared to the corresponding figures in US (600+ bottles
per annum). But being one of the fastest growing markets and by the sheer volumes, India is
a promising market for soft drinks.
The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like
elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot
and Thumps Up when it entered Indian market for the second time. Pepsi Cos soft drink
portfolio also consists of Miranda and 7Up along with Pepsi. The market share of each of the
company is more or less the same, though there is a conflict in the estimates quoted by
different sources.
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The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink
content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malic
acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc.
BEVERAGE INDUSTRY
Indian Beverages industrys size is Rs. 8000 Crores and it is dominated by two players 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 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.
INGREDIENTS OF SOFT DRINK:
We only use the finest ingredients to make Pepsi-Cola products. To guarantee our consumers
consistent quality, each ingredient must pass our high standards, rigorous quality control testsand strict bottling procedures.
Pepsi-Cola products contain natural flavours, including extracts of the kola nut ND flavor oils
derived from natural sources such as citrus and other fruits. Caramel (made from corn sugar)
adds color and flavor to our colas. Other ingredients add a refreshing taste: phosphoric acid in
colas; citric acid and sodium citrate in Mountain Dew, Slice and Diet Pepsi.
We also put a freshness date on every can and bottle. Soft drinks may lose some flavor over
time so our freshness date tells consumers when the product is freshest and best tasting.
Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel, which shows the
number of calories and other nutrients per serving. There is essentially no fat in any Pepsi-
Cola a product. The main ingredients found in Pepsi-Cola products include carbonated water,
carbohydrates, sugar, sodium, potassium and caffeine. For a complete breakdown by
ingredients by product, see our product information for Pepsi, Diet Pepsi, Mountain Dew,
Slice and Aquafina.
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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.
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 citric acid often have Vitamin C but the
technical name for Vitamin C is ascorbic acid.
Gum Arabic
Gum Arabic is a purified natural vegetable gum obtained from the acacia tree and is used in
keeping our carbonated beverages well blended.
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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 almot
the identical composition f 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
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.
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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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KEY ELEMENTS OF THE TRADE
1. JO DIKHTA HAI WOH 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 triages come up because according to the contract the shopkeeper has to keep only
& only Pepsis products in the visi cooler.
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 joints 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 in mind 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.
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PRODUCT PROFILE
The product profile of VARUN BEVERAGE PVT. LTD.is:
Sr. no. No. of Product Quantity Colors Flavor
1 Pepsi Cola 200ml Burnt-Sugar Cola
2 Pepsi Cola 300ml Burnt-Sugar Cola
3 Pepsi Cola 600ml Burnt-Sugar Cola
4 Pepsi Cola 2000ml Burnt-Sugar Cola
5 Mirinda Orange 200ml Sunset Orange
6 Mirinda Orange 300ml Sunset Orange
7 Mirinda Orange 600ml Sunset Orange
8 Mirinda Orange 2000ml Sunset Orange
9 Mirinda Lemon 200ml Tetrazin Lemon
10 Mirinda Lemon 300ml Tetrazin Lemon
11 Mirinda Lemon 600ml Tetrazin Lemon
12 Mirinda Lemon 2000ml Tetrazin Lemon
13 Tropicana 200ml Apple Mix fruit
14 Tropicana 1000ml Apple Mix fruit
15 7up Lime 200ml None Color Lime
16 7up Lime 300ml None Color Lime17 7up Lime 600ml None Color Lime
18 7up Lime 2000ml None Color Lime
19 Everest soda 300ml None Color Lime
20 Everest soda Lemon 500ml None Color Lime
21 Mountain dew 200ml None Color Lime
22 Mountain dew 300ml None Color Lime
23 Mountain dew 500ml None Color Lime
24 Mountain dew 2000ml None Color Lime
25 Slice 250ml. Mango Mango
26 Slice 500ml Mango Mango
27 Slice 1200ml Mango Mango
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PRICING
Product Quantity Price /Pet Quantity/Pet
Pepsi Cola 200ml Rs. 192 pet (24)
250ml (cane) Rs.330 pet (24)300ml Rs. 262 pet (24)
600ml Rs. 546 pet (24)
2000ml Rs. 510 Pet (9)
Miranda Cola 200ml Rs. 192 pet (24)
300ml. Rs. 262 pet (24)
600ml. Rs. 546 pet (24)
2000ml. Rs. 510 Pet (9)
Miranda Lemon 200ml Rs. 192 pet (24)
300ml. Rs. 262 pet (24)
600ml. Rs. 546 pet (24)
2000ml. Rs. 510 Pet (9)
7up Lime 200ml Rs. 192 pet (24)
300ml. Rs. 262 pet (24)
600ml. Rs. 546 pet (24)
2000ml. Rs. 510 Pet (9)
Lemon 600ml Rs. 546 pet (24)
Mirnda dew 200ml. Rs. 192 pet(24)
600ml Rs. 546 pet (24)
Slice 250ml. Rs. 262 pet (24)
500ml. Rs. 546 pet (24)
1200ml. Rs. 630 Pet (9)
Aquafina 1000 ml. Rs. 150 Pet (12)
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PRODUCT PACKAGING AND FACILITIES
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.
Products are 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 to 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.
FACILITIES PROVIDED BY THE COMPANY TO THE RETAILER:-
1. VISI COOLER
65 Liter
110 Liter
120 Liter
165 Liter
200 Liter
210 Liter
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220 Liter
300 Liter
320 Liter
330 Liter
. 400 Liter
500 Liter
These coolers are allocated according to outlet nature, volume & investment of the outlet.
2. SCHEMES OF VOLUME PURCHASE
Cash discount
Card discount (sampling)
3. DISPLAY MATERIAL
Stickers
Banners
Racks
Counters
G.S. Boards
D.P.S. Boards
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DISTRIBUTION NETWORK
Total market of Mohan Nagar is divided into 1 Dipot & 8 distributors.
Distributors names are:-
Pal Sweet House
Prag dairy Firm
- Mayuri Marketing
- Ramavtar Enterprises
- Manoj Store
- Krishna Enterprises
- Ashriti Enterprises- M.H Marketing
DISTRIBUTION OF PEPSI
Here there are four systems of distribution channels.
- Channel 1.
- ManufacturerConsumer
- Channel 2.- ManufacturerRetailer..Consumer
- Channel 3.
- ManufacturerWholesaler.RetailerConsumer
- Channel 4.
- Manufacture.WholesalerJobberRetailer..Consumer
In Mohan Nagar channel 1, 2 and 3 are being Used for distribution
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DISTRIBUTION CHANNELS
COBO: These are Company owned bottling operations operating directly under the
Company. Out of 32 bottling plants, PepsiCo owns 15.
COBO FOBO
WAREHOUSE
C & FDISTRIBUTER
SALESMAN SALESMAN
WHOLESELLER SLUMS RETAILERS
RETAILERS
CUSTOMER
CUSTOMER
COMPANY
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FOBO: These are Franchise owned bottling operations.
Warehouses: These are Company or franchisee owned warehouses spread over various
locations that cover the respective territories and come under the purview of their respective
Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from
where they are sent to the C & F centres and Distributor Points.
C & F Centres: These are the biggest centres in the distribution network and receive proper
assistance from the Company (either COBO or FOBO). The C & F centre is owned by a
private player and not by the Company. The vehicles (Delivery Vans) are owned by the
Company, and the Salesmen at the C & F points are on the Company Payroll.
Distributors: These are small, compared to C & F centres. Everything at the Distributor
point owned and managed by the distributor, even the salespersons are on the Distributors
payroll.
Wholesalers: These are smaller than C & F centres and Distributor points and get the stock
directly from the Company or Franchisee. They get their stock directly from the Company
and thus get special rates and extra discounts from the Company.
Slums: They are generally smaller than the Wholesalers are. However, they get special
discounts from the C & F centres and Distributor points. All the different players in the
distribution channel namely C & F centres, Distributor points, Wholesalers and Slums have
different designated markets and are not supposed to operate in the market designated to any
other player.
Retailer: Retailers are the most important chain in the distribution channel of Pepsi as they
are the only point of contact with the customers. Retailers get their stock from all the other
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channel members in the distribution channel.
Total market of Mohan nagar is divided into 1 C&F Agent & 8 distributors.
Distributors names are:-
- Pal Sweet House
Prag dairy Firm
- Mayuri Marketing
- Ramavtar Enterprises
- Manoj Store
- Krishna Enterprises- Ashriti Enterprises
- M.H Marketing
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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, itis 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.
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DISTRIBUTION CHANNEL REDEFINED
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. Pepsis reinvention of distribution is built on an
understanding of emerging consumer trends, the retail environment and the growth drivers of
our brands. Pepsis 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.
Product Availability
Point Of Purchase
Brand Experience
Brand Communication
CHANNEL FUNCTION AND FLOWS
Marketing channel perform the following functions-
To gather the information about potential and current customers, and competitors.
To list orders with manufacturers.
To reach agreements on Price
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 to various retailers is asfollows
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OBJECTIVE OF THE STUDY
To understand the problems facing the channels of distribution in allocated area.
To understand retailers behaviour.
LITERATURE REVIEW
Vives (1984) and Gal-Or (1986) concluded that duopolistic competition for both quantity
and price setting competitors. Their conclusion suggests that for Bertrand competitors,
incentives always exist to share common demand information. The case is usually the
opposite for Cournot competitors, but Mauleg and Tsutsui (1996) show that even in a
Cournot model, if the demand uncertainty is about a common slope parameter rather than the
overall level of demand, competitors may have incentives to share their private information.
This paper extends this stream of research analyzing the incentives of competitors in demand
information sharing with a distribution channel partner, i.e., vertical information sharing.
Another aspect of a firms information strategy concerns with information selling (Sarvary
and Parker 1997, Iyer and Soberman 2001) but we do not consider that in our model.
Strategic Alliance Literature and the Distribution Channel Context:
Li et al. (1987) studied at quantity setting competitors decision of acquiring information
about an uncertain demand parameter through, say, market research, and conclude that more
information is always good for a firm though cost consideration may prevent firms from
acquiring unlimited amount of information. Several studies have looked at competing firms
incentives in sharing their private information. Analyzing quantity setting competitors selling
directly to consumers, many researchers including Gal-Or (1985) and Shapiro (1986) analyze
competitors incentives in sharing demand and cost information.
Carpenter and Coughlan (1998) studied the problem of channel partners entering into an
alliance for a bilateral monopoly channel. They focus on the importance of hold-up problems
in this context even without any uncertainty in the environment. In our work, an alliance is
formed only when it is beneficial for both firms, and hence we do not consider the hold-up
problems. Stern et al. (1996) point out that information is sometime used to facilitate soft orquasi integration of the entire channel and our analysis also supports a similar outcome. Chu
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and Messinger (1997) use a bilateral monopoly setup to explore the information acquisition
decision of the channel partners. In this paper, our focus is on the information sharing
decision.
Further, Chu and Messinger allow only the two polar cases; no information vs. perfect
information. Using the reliability metric that we develop for measuring the quality of a firms
information, we are able to model information more generally, allowing for imperfect
information as well. Thus, in this work, we analyze information sharing decisions among
channel partners both in a bilateral monopoly framework and in a competitive channel.
Simon Kwok ( 2003) Concluded that there is considerable interest and debate over the
effectiveness of sales promotion. Previous studies have shown that sales promotions
are more effective when they provide benefits that are congruent with those of the
promoted product. This study explores and extends the congruency framework by
analyzing the impact of culture at an ethnic group level. The purpose is to investigate
the popular assumption that cultural differences exist at this level and to see whether
these differences have an impact on sales promotion effectiveness. A quasi-
experimental design is used to test a series of hypothesis based on a sample of Anglo-
Australians and Chinese-Australians. It is found that despite the existence of cultural
differences at an ethnic level, culture does not appear to have a significant impact on
consumer responses to sales promotion. It is alsoFound that the congruency effects
between product and promotion type are weak and may be non-existent in some cases.
Finally, the study also provides evidence that further validates a scale used for the
measurement of culture.
Farris, Paul and Friberg, Kristina, Snapple Beverage Corporation. ,( Vol. , pp. October
21, 2008)This case described the situation facing Snapple management during the early-
growth stages of the brand and category of flavored teas. In the early months of summer, just
as peak season was approaching, Snapple was already facing out-of-stocks. The case asks
students to wrestle with the options of cutting back on flavors or product lines, allocating
demand to certain outlets and geographical areas, or coming up with creative solutions to deal
with the problem. Strong competitors (Coke, Pepsi, Nestea, and Lipton) were also threatening
to take share from Snapple in a category the company had created. The system of contract
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production and independent distributors further complicated Snapple's ability to implement
short- and long-term solutions that would balance push and pull marketing. The case includes
a CD with video of Jude Hamerle, Snapple's marketing manager, describing what the
company did and why, which provides an opportunity for a discussion of subsequent events,
including Quaker's purchase and, later, sale of Snapple to Triarc.
Markkinointi (2008) Concluded that the interest for the case company as they had
challenged the Finnish credit card markets by introducing new product features aimed
at persuading customers to use credit card as a daily payment method. The initiative
was reinforced by a set of sales promotion activities, which were the focus of this
research. The theoretical part of the research was based on the academic literature onthe subjects of sales promotion, consumer behavior and financial services. Results
concerning birthday promotion did not reveal statistically significant differences
between promotion and credit card transactions. The lack of marketing
communications and sales frequencies, however leave the question unclear. After all,
the most active customer group was customers age 18 to 37 and they were also the
most influential group to sales promotion. Both promotions also showed that most of
the purchases are very small that is between 0-25.That could indicate that the card
was actually used in small daily purchases,
Julian Vieceli, Robin N Shaw(Dec. 2010, Vol.26)A study has investigated how Chinese
retailers perceive their foreign brand apparel suppliers and explored the use of power theory
for explaining these relationships. A survey of 150 apparel retailers operating in Beijing,
China provided data for the study. Referent power Positively influenced retailers' attitudes
toward and non-economic satisfaction with their Suppliers. Greater referent power also
reduced channel conflict and enhanced economic satisfaction with business performance. The
importance of this source of power seems to be linked with the concept of guanxi in China,
where respectful relationships are valued. Coercive threats to withhold necessary
merchandise, service, or contracts increased channel conflict. Surprisingly, greater channel
conflict was associated with increased economic satisfaction with business performance. This
relationship is contemplated from a cultural perspective and recommendations are made to
foreign brand apparel manufacturers wishing to access China's retail market.
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Category Management:
Interest in understanding and implementing category management is very high among
executives. As Bucklin and Gupta (1999) report, category management was found to be the
most important issue in their study among all issues in the distribution and retail management
area. The category management movement has been fairly widespread in frequently
purchased packaged goods distributed through grocery stores and similar initiatives were
planned in other related businesses in recent years.1 However, there is also evidence of some
disenchantment with the concept, especially among retailers. By analyzing incentives for
both manufacturers and retailers, we investigate the conditions when information sharing is
indeed beneficial for each member of the distribution channel. Academic research has
provided models to help implement micro marketing (Montgomery 1997) and relevantmetrics for evaluating profitability(Chen et al. 1999), but virtually no attempt has been made
to explain the emergence of the category captain phenomenon. We model category
management as an information sharing phenomenon in competitive channels and also show
how information sharing may help mitigate some of the ills associated with excessive
upstream competition and trade promotions.
PepsiCo is one of the oldest, largest and most successful beverage and snack food companies
in the world. PepsiCo was founded by Caleb Bradham in 1902 in USA. Today PepsiCo and
its affiliates operate in more than 140 countries in the world and generate revenues in excess
of $ 40 Billion. In its pursuit of never ending growth and expansion, PepsiCo entered India in
1989 in a joint venture with Punjab Government. However, PepsiCo India very soon started
its beverage operations in collaboration with the R K Jaipuria group.
Soon after entering the beverage segment PepsiCo Established its dominance in the market
owing to its expertise in sales, marketing, operations and local collaboration. PepsiCo
maintained its market dominance for many more years to come. However, this advantage
slipped and PepsiCo had to concede the market leadership to Coca Cola India. Several actors
were responsible for this development. But, the most important are;
Ad campaigns targeting regional markets.
Discontinuation of Slums in the distribution network by PepsiCo. This move by PepsiCo
adversely affected its position of a market leader because while PepsiCo discontinued the use
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of Slums in its distribution network, Coke continued it and within one year, it was able to
snatch considerable market share from PepsiCo.
Acquisition of well-established and favored brands like Thums Up and Limca by Coca Cola
India. These two brands still constitute a bulk of sales for Coca Cola India
Nickolas Dias (president of pepsi 1940) noticed that the company's strategy of using
advertising for a general audience either ignored African Americans or used ethnic
stereotypes in portraying blacks. He realized African Americans were an untapped niche
market and that Pepsi stood to gain market share by targeting its advertising directly towards
them.
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RESEARCH 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. As the method, I have
used percentage method to present the data.
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 Sahibabad & 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. Here, I carried out information from
retailers and carefully selected the instrument & methods of surveying like I have chosen
personal contact methods because of higher response rate & meaningful responses. This has
helped me to get the general feedback about Pepsi.
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 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
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ended questionnaire where respondents could answer in their own manner. Through this I
was able to extract information from the respondents about Pepsis products & the
competitors.
Sampling Plan:
In designing the sampling plan following points were considered:
Sampling Unit: It includes who is to be a surveyed i.e retailers of Sahibabad region.
Sampling Size: I have surveyed about each & every outlet of the area specified to me so size
would reach upto 100 retailers.
Elementary Retailers.
The geographical limit is the area of Shahibabad,region.
Contact Method:
In my research process, I have collected information through personal interview process. 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 Excel modelling application to present the data by pie chart
and Bar diagram for data analysis & interpretation because these are the easiest &
comprehensive medium for presentation of data. Sampling unit is a single retailers outlet
which may be:-provision store, stationery shop, eatery &kiosk. The universe studied is the
sum of the retailers in the Shahibabad area.
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DATA ANALYSIS
1. Number of different types of store out of 100
Grocery 39
Kiosk 23
Eatery 17
Provision store 12
Others 9
The graph is clearly representing that number of grocery shop is maximum in the area. It
shows that the analysis which is going to be describe, these retailers have mostly participated.
The overall data analysis may suffer from biosness, thats why, I have analyzed this by using
percentage method and represented them in the column and bar digram.
2. Retailers Outlet Share
Pepsi 48%
Coca-cola 39%
Others 15%
39
23
17
129
0
10
20
30
40
50
Grocery Kiosk Eatery Provision store Others
Series1
48%
39%
13%
0%
10%
20%
30%
40%
50%
60%
Pepsi Coca-cola Others
Series1
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Till where the outlet share of retailer outlet is concerned, according to the graph that Pepsi
share in outlet tells the whole story of PEPSI. As about the services, facilities, visiting sales
person, etc. which I have represented in the particular way.
3. Pack demand
IN %AGE Grocery Kiosk Provisional
Store
Eatery Others
200 ml 7 9 12 28 32
250 ml 13 10 15 13 23
300 ml 18 27 18 11 18
500 ml 27 25 19 24 6
1000 ml 11 22 14 5 16
2000 ml 24 7 22 19 5
The analysis says that 500 ml pack is most popular. At the grocery stores the low quantity
packs are demanded less but the fact is that these stores are not much interested in selling
small quantity packs. So these stores demand company for large packs. At the same time the
bottle shops which are in the category of others are selling mostly small packs.
713 18
27
11249
10
27
25
227
12
15
18
19
14 222813
11
24
5
19
32
23
18
6
16
5
0
20
40
60
80
100
120
200 ml 250 ml 300 ml 500 ml 1000 ml 2000 ml
Others
Eatery
Provisional stores
Kiosk
Grocery
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4. Demand of different customer group
IN %age Pepsi Coca-cola Others
Male 39 56 5
Female 58 34 8Children 58 38 4
Why Pepsi is being demanded more? Yes, obviously pepsi is more demanded in the area.
There may be the various of reason to guess. But the finding is different from all. Only the
brand image and popularity of the brand people is more, which have made the Pepsi so
demanded. But if individually we see the male part they are demanding for coca-cola as the
answer I got, its more fizzzzyy.
5. Happy with Distribution channel
In % age Very Happy Happy Partialy Happy Not Happy
Grocery 55 15 19 11
Kiosk 60 32 6 2
Provisional store 67 25 5 3
Eatery 59 30 7 4
Others 54 35 7 4
3956
5
5834
8
58
38
4
0
20
40
60
80
100
120
140
160
180
Pepsi Coca-cola Others
Children
Female
Male
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This analysis is able to tell the story of degree of perfectness of distribution channel so that
the retailers are happy. But the means of analysis why the some of retailers are not happy?
Mostly in the column of Not happy grocery stores may seen. But make all happy by an
individual is not so easy task. In fact that catogary wants to sell, what they want. And
company wants to them that the sell all the packs equally and simply the conflict arises.
6. Sale in carets
In % age 0-50 crts 50-100crts 100-150crts 150-200crts 200-crts
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Only some stores are able to sell more than 200 crts in whole month and in them the number
of kiosk is more. Actually the data is taken in down season. however the average sell of pepsi
is seems to be good.
7 responsive to your complaints
In % age Strongly
agree
Agree Neutral Disagree Fully
Disagree
Grocery 55 27 7 4 7
Kiosk 49 23 11 9 8
Provisional
store
52 32 12 2 2
Eatery 59 34 3 3 1
Others 42 36 8 9 5
1114
35
38
2
30
38
17
11
4
20
56
18
42
16
44
33
4 3
15
46
30
63
0
10
20
30
40
50
60
0-50 crts 50-100crts 100-150 crts 15-200 crts 200-crts
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The stores are seems to be equaly decision taker all the types of stores has a equal thinking as
concerned to the level of agreeness.This means company is able to show the proper response
to the retailers that has tied up them with the company.
8. Delivery position of PepsiCo product
In % age Very good Good can't say Bad Worse
Grocery 52 32 11 3 2
Kiosk 59 33 5 2 1
Provisio
store
48 28 10 9 7
Eatery 55 35 2 6 2
Others 53 38 3 5 1
55
27
74
7
49
23
119 8
52
32
12
2 2
59
34
3 31
42
36
8 95
0
10
20
30
40
50
60
70
Strongly agree Agree Neutral Disagree Fully Disagree
Grocery
Kiosk
Provisional store
eatry
others
5232
11 3 2
59
33
52 1
48
28
10
9 7
55
35
26
2
53
38
3 5
10
50
100
150
200
250
300
Very good Good Can't say Bad Worse
others
Eatry
Provision store
Kiosk
Grocery
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Its obvious that if the response is good than the delivery position will also strong and the
retailer will always be satisfied.
9.Frequency of the visit of Pepsi executive
In % age Daily Alternate
Day
weekly fortnightly Monthly more than
these
duration
Grocery 35 33 15 6 1 0
Kiosk 38 43 16 3 0
Provisio
store
42 28 22 7 1 0
Eatery 50 29 18 3 0 0
Others 53 30 11 6 0 0
If all together we see, the good response, wanted delivery, and proper visits gives an extra
inspiration to sell the product. Retailer analyze these things. These things show that company
a proper care for their product as well as the concerned people.
35 3315
6 1 0
38 43
16
30
42 28
22
71 0
50
29
18
3
0 0
53
30
11
6
0 00
50
100
150
200
250
Daily alternate day Weekly Fortnightly monthly more than
these
duration
Others
eatery
Provision store
Kiosk
Grocery
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10. Do you have visi-coolers?
In % age (a) Pepsi (b) Coca
Cola
(c) Both (d) Own (e)Others
Grocery 30 22 26 20 2
Kiosk 33 30 30 2 6
Provisio store 32 30 28 3 7
Eatery 45 44 8 3 0
Others 51 38 9 2 0
Visi-coolers are the cooling equipment provided by the company to the retailers because its
the concept of the company A BOTTLE THAT IS CHILLED IS SOLD. Its good that
company has provided visi-coolers but some of the grocery stores having their own also. That
is for multipurpose uses. Company most try to replace the others by their own visi-coolers.
30 22 26 202
3330 30
2
6
3230 28
37
4544
8
30
51
38
9
20
0
50
100
150
200
250
(a) Pepsi (b) Coca
cola
Both (d)Own (e) Others
others
Eatery
Provision store
Kiosk
Grocery
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11. What time suits for visiting a salesperson to store
Mornin
g
Noo
n
Afternoo
n
Evenin
g
Grocery62 22 9 7
Kiosk 68 14 8 10
Provisio
n store
72 6 13 9
Eatery 75 3 16 6
Others 80 4 6 10
The huge number is in the favour of morning visiting our. Thats gives them a proper space to
talk and order the products.
0
20
40
60
80
100
120
Grocery Kiosk Provision
Store
Eatery other
Evening
Afternoon
Noon
Morning
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Finding of Distribution and Network
In today the FMCG is the highest competitive sector and now the companies are using push
strategy so that they can be able to compete their rivals. After visiting nearly 100 outlets I
have found:-
1. Every retailer wants that vehicle should come in the morning so that they will keep the
bottles in the fridge as soon as possible so that they can cater to the demand of customers and
replenishment is fast.
2. Company is not able to solve or not responsive to the some stores, mainly of otherscategory, i.e. bottle shops, even then they are doing good business.
3. Cooling equipments are not well distributed. Where the grocery stores are using their own
freezer at the same while provisional stores and small shops have not properly got the
equipments.
4. In spite of everything better, there is dissatisfaction among some retailers. This is because
of some personal behaviour of retailers.
5. Although coca-cola has very good distribution channel over there but Pepsi has maintained
its market share due to its strong CRM (customer relationship management) with the retailers.
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SWOT ANALYSIS
STRENGTH
Pepsi is a well-established brand, so it has a good reputation in the market.
Backed by huge promotion at national & international level.
Well known personalities are attached with the brand.
They are able to satisfy their retailers at the great extent.
Pepsi share in the market is high due to customer satisfaction.
WEAKNESS
Unable to attract more male category customer, which are mostly attracted by itscompetitors.
Incompetent salesman who do not give the schemes in the market regularly.
Unavailability of various demanded flavours like Mountain Dew & Mirinda Lemon.
Ignorance of others category shops.
OPPORTUNITY
Many tie up or liaison with major showrooms, computer centres & restaurant.
Huge publicity of Lemon Miranda /Slice has created a lot of demand.
Company has brand equity in the eyes of customers, so its new products can easily
penetrate in the market.
Untapped market.
No major competitor other than Coca-Cola.
THREAT
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.
The coca-cola brand is the major threat to the company which is still the market
leader in this segment.
The grapevine by the people that it contains harmful chemicals and pesticides.
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CONCLUSIONS:-
1. After visiting nearly 100 outlets I found that Pepsi & its Brands are doing a good job in
Shahibabad. It is clear that Pepsi (48%) is ahead of Coke (39%) in the soft drink market in
Shahibabad region. If we compare it with Signage or display material then also Pepsi has an
edge over coke.
2. At this time it slolely 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 Thumps up, sprite 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
younger generation only. Finally 2lit. are used only for family or party purpose.
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LIMITATIONS
Findings are based on the views expressed by the consumers. So it may suffer frombiased prejudices.
Some of the respondents were not co-operative & many seem to be having nointerest.
The study has not been intended on a very large scale, have the possibility of errors,which cannot be ruled out.
Geograhic Area was specified so the findings may differ from area to area. It is extremely time consuming exercise to persuade retailer to respond to
questionnaire.
The retailer knows us as people from Pepsi there by the responses could have beenbiased.
The company does not provide any financial assistance.
The time allowed for the project was very short (6 weeks).
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RECOMMENDATIONS:-
1. PEPSI, the choice of Generation next is not providing the first choice of young generation.
A young generation wants something strong in cold drinks & thus prefers Thums up, sprite.
Pepsi should come out with some extra strong taste to catch up maximum young generation
& to become exactly Generation Next drink.
2. Company should appoint competent & sincere salesman so that they could provide
schemes to the entire retailers & cover their full route.
3. It is often seen that some salesman do not intimate schemes to the retailer & few of theretailers 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 delay & no replacement of burst bottles.
Marketing Management should sort some solutions to this major problem of replacing burst
bottles.
6. Company should try to give some credit facility based on the credit worthiness distributors
so that they get motivated.
7. Proper feedback system should be developed by ensuring regular visits & check randomly
at the various outlets.
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BIBLIOGRAPHY
-Sustainable Distribution Partnerships through Credible Threats and Credible
Commitments." Discussion paper, J L Kellogg Graduate School ofManagement. Northwestern University.
-http://papers.ssrn.com/sol3/papers.cfm?abstract_id=909957
- Choi, S. C. 1991. "Price Competition in a Channel Structure with a CommonRetailer." Marketing Science10 (4) 271-296.
- Chu, W. and P. R. Messinger. 1997. "Information and Channel Profits."Journal of Retailing73 (4) 487-499.
- Courtney. H., Kirkland, J. and Viguerie, P. 1997. "Strategy under
Uncertainty." Harvard Business Review(Nov/Dec) 67-79.
- Gal-Or, E. 1985. "Information Sharing in Oligopoly." Econometrica53(March) 329-343
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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
1. You are interested to sale
Pepsi . Coke .
Reason:
2. Which pack of Pepsi is demanded more
200ml
250/300ml
500ml
1000ml
2000ml
3. Demand of different customer group
Group Pepsi Coke
Male _____ _____
Female _____ _____
Children _____ _____
4. Do you get the delivery at right time?
1).Always. 2.)sometimes.. 3.)Never.
5. Are you happy with companies distribution channel?
1.)Very happy2.) Happy 3.) Partially happy..4.)Not happy
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6. Which of the company you feel is suitable to meet your requirements in a better way?
Coke .
Pepsi .. Others Specify..
7. Do you get the benefits of daily schemes launched by the company?
1).Always.2.)sometimes.. 3.)Never.
8. Do you always receive the ordered quantity?
1).Always. 2.)sometimes.. 3.)Never.
9. what is the visit the Companies Officers give you ?
1).Always. 2.)sometimes.. 3.)Never.
Use the notes taken during the exercise to answer the questions below
1.)Strongly Agree 2.) Agree 3.)Neutral 4.)Disagree 5.)Fully Disagree
10. Do you agree that Salesman to be changed at regular intervals?
1 2 3 4 5
11. Is company responsive to your complaints?
1 2 3 4 5
12. Number of carets sold per month of soft drinks.
(a) 0 - 50 crts (b) 50 to 100 crts(c) 100 to 150 crts(d) 150 to 200 crts..
13.Which brands of soft drinks are available in the outlet?
(a) Pepsi Cola (b) Mirinda (c) 7Up (d) Slice (e)Mountain Dew (e)Aquafena water
14. When a customer comes to your shop which brand of soft drinks does he/she
demands?
(a) Pepsi ..(b) Coca Cola
(c) Others
15. Do you know about all flavors pack (size) and respective wholesale price Pepsi
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soft drinks.
(a) Yes (b) No
16. What is the position of delivery of Pepsi products?
(a) Very Good (b) Good (c) Bad (d) Worse
17. What is the frequency of the visit of Pepsi executive?
(a) Daily (b) Alternate Day
(c) Weekly (d) Fortnightly
(e)Monthly (f)More than these durations
18.Which time suits you for visiting a sales person to your store?
(a) Morning (b) Noon
(c)Afternoon (c) Evening
19.Which factors affect the sale most?
(a) Advertisement (b) Scheme
(c) Presence (d) Taste
(e) Price (f) Others
20. Which company Visi-Cooler do you have?
(a) Pepsi (b) Coca Cola
(d) Own (e) Others
21. What is the position of maintenance work of refrigerator done by Pepsi
Company?
(a) Highly satisfactory (b) satisfactory (c) Less satisfactory (d) Not satisfactory
22. Have you been provided with sign board/display rack by Coke Company?
(a) Yes (b) No
23. How many times delivery van comes?
(a) Ones in a day(b) In alternate days
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(c) Once in a week
(d) Any other,please specify
24. Have you any type of dissatisfaction regarding the product. It yes then why?
25. Your recommendations about Pepsi company?
Any suggestion .