Juice Market Analysis-Tropicana & Competition

Qwertyuiopasdfghjklzxcva;pl;aloknm
qwertyuiopasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwertyuiopasd
Juice Market Analysis-Tropicana &
fghjklzxcvbnmqwertyuiopasdfghjklzx
Competition
cvbnmqwertyuiopasdfghjklzxcvbnmq
Section B
wertyuiopasdfghjklzxcvbnmqwertyui
/23/2010
opasdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjklzxc
Alok Mahajan
vbnmqwertyuiopasdfghjklzxcvbnmq
opasdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvbnmq
opasdfghjklzxcvbnmrtyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyuiopas
dfghjklzxcvbnmqwertyuiopasdfghjklz
Table of Contents
Review of Related Literature.................................................................................................7
FMCG Industry Snap Shot:..................................................................................................15
FMCG industry size.................................................................................................15
Category Wise Share of Sector:.............................................................................16
FMCG Growth: urban and rural..............................................................................16
India: Consumption Story.....................................................................................................18

Segmentation analysis for fruit juice................................................................................19
Geographic segmentation:......................................................................................19
Demographic segmentation:...................................................................................19
Socio-economic segmentation:...............................................................................20
Psycho graphical segmentation:.............................................................................20
Details of Actual work undertaken......................................................................................23

Tropicana-Impulse Buy........................................................................................23
Tropicana: Extremely Lucrative product for Retailer..............................................23
Classification of Market: Delhi & NCR....................................................................25
Understanding Market Scenario:-Faridabad...........................................................28
Understanding Reporting Hierarchy and Responsibilities:-....................................29
Myopic Hierarchy View-Faridabad..........................................................................30
Understanding -Merchandising/ Displays: -............................................................30
Distributor’s Role.....................................................................................................31
Understanding Mechanics of Distribution Channel.................................................32
Distributor Web in Delhi &NCR(Faridabad & Gurgaon)..........................................36
Faridabad Market:-..................................................................................................37
S.W.O.T analysis of Faridabad Tropicana Market...........................................................38

Area Details.............................................................................................................39
Birds Eye View-Central Delhi..............................................................................................40

Coverage Areas-Finding Tropicana Gaps..............................................................40
2
Questionnaire Details for Tropicana –Central Delhi...............................................41
Survey Form-Explained Logic & Underlying Need...................................................42

Sales exercise:-.......................................................................................................43
Pricing of Tropicana and Gatorade.........................................................................43
Sales Progress:-......................................................................................................44
Estimation Exercise...............................................................................................................46
Estimation Exercise................................................................................................47
Understanding Fields -Manpower Estimation.........................................................47
Deciphering-Man power Estimation........................................................................47
Market under Scanner:-Karol Bag..........................................................................51
Karol Bag:-Deciphering Ground Reality.....................................................................52

Market under Scanner-Gole Market, C.P, Pahar Ganj...........................................53
Gole Market, C.P ,Pahar Ganj:-Deciphering Ground Reality.................................54

Market under Scanner-Chandni Chowk..................................................................55
Chandani Chowk:-Deciphering Ground Reality........................................................56
Market Under Scanner-Jhandewalan.................................................................................57

Jhandewalan:-Deciphering Ground Reality...............................................................58
Market under Scanner-Sadar Bazar.......................................................................59
Sadar Bazar:-Deciphering Ground Reality................................................................60

Market under Scanner-South Patel Nagar..............................................................61
South Patel Nagar:-Deciphering Ground Reality.....................................................62

Market under Scanner-East Patel Nagar and Rajinder Nagar...............................63
East Patel Nagar and Rajinder Nagar-Deciphering ground reality........................64

Market under Scanner-West Patel Nagar...............................................................65
West Patel Nagar-Deciphering ground reality..........................................................66

Understanding Questionnaire-Competitor’s Margin:-.............................................69
Traders and Distributor Margins.............................................................................70
Findings of Study:-................................................................................................................77
Summarized data s for Central Delhi is as follows...........................................................77
Consolidated Graphical Findings –Central Delhi....................................................78
3
Findings Consolidated –Central Delhi....................................................................79
Below are the consolidated findings for Central Delhi............................................79
Consolidated Graphical Findings West Delhi.........................................................80
Areas Covered –West Delhi.................................................................................81
Consolidated Graphical Findings-North Delhi...................................................82
Area Covered-North Delhi....................................................................................83
This data was collected by team members.............................................................83
Consolidated Graphical Findings-East Delhi.....................................................84
Findings-Estimation Exercise..................................................................................86
Finding Distributor details:-Unified..........................................................................87
Reaching Distributor Point:-........................................................................................87

Infrastructure:-................................................................................................................88
Expenses of Distributor:-..............................................................................................89
Dissatisfied Distributor:-................................................................................................90
References and Bibliography............................................................................................102
4
Title of the Project undertaken
Juice Market-Tropicana & Competition Analysis
Need & Objectives of the project

Tropicana business for PepsiCo in Delhi is not reaping profits for the firm. PepsiCo’s
Tropicana in juice market faces a daunting challenge from Dabur's Real in Delhi.
Dabur’s has staggering 60% market share in Industry whereas as of now Tropicana
stands at meager 20%.So clearly there is a visible gap in terms of market presence
where Tropicana is lagging. According to survey done by AC-Nielson ,out of 60,000
shops Tropicana is present only in 12000 shops and price of knowing the name of
shops cost 12L to company/ Need of this project was felt as company wanted to
depict the real market scenario from Quality man power, free from any biases and
presenting the grass root level reality of the product’s presence in Delhi region. After
taking the feedback/suggestions from summer trainees they can work on their soft
spots. Secondly, company require practically innovating strategies on how to
increase sales figure from 75 Crore to 200 Crore-which clearly focuses on the big
picture and hence, enabling the brand Tropicana to increase its appeal and value.
Also the untapped shops asks for more resources for better coverage and better
execution.
On 17-04-2010 PepsiCo launched their new product Gatorade Sports Mix

Company’s aim is to make sure that Gatorade reaches the counter where Tropicana
is already present and also to make clients aware of the product
The following are the objectives of the product undertaken:
1. Find the market “Where Dabur’s Real is present but Tropicana is

missing??”-directly enabling the Tropicana to increase its presence across
5
new consumer base in turn increasing sales and hence forth increasing its
revenue
2. Calculating hidden sales from untapped markets and doing human resource
estimation.
3. Finding places where PepsiCo can sell its Tropicana in high volumes that
differ from traditional trade. E.g. placing Tropicana within the cafeteria of Life
Insurance Corporation facility located in “Canaught-Place” or placing
Gatorade at various fitness centre like Goldie’s-Gym to give incremental
growth to organization and hence increase its value.
4. How to optimize supply chain of Tropicana?
5. Why Dabur’s Real is ubiquitous across Delhi when compared to Tropicana?
6. How their business model differs?
7. Do Competitive analysis of margins and scheming of beverage industry-find
out the retailer margins and distributor margin of competitor beverages. This
will enable organization to know what offerings are competitors making to
clients,
8. Preparing a blue print on how to turbo charger the sales of Tropicana from
75Crore Last year to 200Crore this year
The entire project was divided into three phase:
Market Gaps
Finding untapped market for tropicana

Find out market share of Tropicana and Real
Improvement -Recommendations
Estimatie Exercise
Calculating manpower needed to cover untapped shops

Finding untapped sales potential
Sales Exercise
Hands on Experience for Tropicana/Gatorade

Traditional Trades-West Delhi
6
Review of Related Literature
The study of related literature for conducting research is important and helpful in
understanding the need for the research undertaken. It is also done in order to
familiarize oneself with the work that has been done in the areas of one’s interest
and to get some useful information in order to understand the problems and issues
of the research topic. Thus, it was essential to review the relevant literature for the
variables of feeling of alienation and frustration and the effect of guidance on the
above mentioned variables of mothers of mentally challenged children. Only the
major research findings are given here below.
MARKETING:
Marketing is an integrated communications-based process through which individuals
and communities discover that existing and newly-identified needs and wants may
be satisfied by the products and services of others.
Marketing is defined by the American Marketing Association as the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large. The
term developed from the original meaning which referred literally to going to market,
as in shopping, or going to a market to buy or sell goods or services.
The Chartered Institute of Marketing, which is the world's largest marketing body,
defines marketing as "The management process responsible for identifying,
anticipating and satisfying customer requirements profitably.
Marketing practice tended to be seen as a creative industry in the past, which
included advertising, distribution and selling. However, because marketing makes
extensive use of social sciences, psychology, sociology, mathematics, economics,
7
anthropology and neuroscience, the profession is now widely recognised a science,
allowing numerous universities to offer Master-of-Science (MSc) programmes. The
overall process starts with marketing research and goes through market
segmentation, business planning and execution, ending with pre and post-sales
promotional activities. It is also related to many of the creative arts. The marketing
literature is also infamous for re-inventing itself and its vocabulary according to the
times and the culture.
According to Boone Kurtz Mackenzie Snow, “Marketing is an organizational function
and a set of process for creating, and delivering value to customers and for
managing relationships in way that benefit the organization and its stakeholders”
MARKET SHARE:
Market share, in strategic management and marketing is, according to Carlton
O'Neal, the percentage or proportion of the total available market or market segment
that is being serviced by a company. It can be expressed as a company's sales
revenue (from that market) divided by the total sales revenue available in that
market. It can also be expressed as a company's unit sales volume (in a market)
divided by the total volume of units sold in that market. It is generally necessary to
commission market research (generally desk/secondary research, although
sometimes primary research) to estimate the total market size and a company's
market share.
8
According to David Campbell, George Stonehouse, Bill Houston (1999) ,market
share is measure of an organizations performance with regard to its ability to win and
retain customers. It can be measured by either volume or by value.
Malcolm McDonald(2002), highlights that Market Share is the proportion of actual
sales(either volume or value) within a defined market, and is thus a measure of
satisfying customers
MARKET SHARE ANALYSIS:
Market share analysis is an important part of market analysis and indicates how well a
firm is doing in the marketplace compared to its competitors. It is a part of marketing
research process.
Stages of marketing research process
Problem Definition
The first step in any marketing research project is to define the problem. In defining
the problem, the researcher should take into account the purpose of the study, the
relevant background information, what information is needed, and how it will be used
in decision making. Problem definition involves discussion with the decision makers,
interviews with industry experts, analysis of secondary data, and, perhaps, some
qualitative research, such as focus groups. Once the problem has been precisely
defined, the research can be designed and conducted properly.
9
Development of an Approach to the Problem
Development of an approach to the problem includes formulating an objective or
theoretical framework, analytical models, research questions, hypotheses, and
identifying characteristics or factors that can influence the research design. This
process is guided by discussions with management and industry experts, case
studies and simulations, analysis of secondary data, qualitative research and
pragmatic considerations.
Data Preparation and Analysis
Data preparation includes the editing, coding, transcription, and verification of data.
Each questionnaire or observation form is inspected, or edited, and, if necessary,
corrected. Number or letter codes are assigned to represent each response to each
question in the questionnaire. The data from the questionnaires are transcribed or
key-punched on to magnetic tape, or disks or input directly into the computer.
Verification ensures that the data from the original questionnaires have been
accurately transcribed, while data analysis, guided by the plan of data analysis, gives
meaning to the data that have been collected. Microsoft Excel is used for data
interpretation.
10
Cross Selling:
Khurana, author of Information technology for retailing defines cross selling as
sales techniques of selling additional products to existing customers
Jane W.D'Arista (1994) highlights that cross selling merely reflect an institutions
efforts to inform customer of other services available .Or it may involve explicit
packaging arrangements ,in which access to one service depends on purchase of
another
According to Galit Shmueli, Nitin R. Patel, Peter C.Bruce (2007) cross selling is an
opportunity. Once a customer has "taken the bait" and purchase one product, try to
sell them another while you have their attention
Visual Merchandising
Bhalla author of Visual merchandising sates that -Visual merchandising is defined as
the presentation of any and all merchandise at its best:(i)color coordinated-
(synchronized-colors),(ii)accessorized(related-roducts/props);and (iii)self explanatory
(descriptive/illustrative)
Visual merchandising is the activity of promoting the sale of goods, especially by
their presentation in retail outlets. (New Oxford Dictionary of English, 1999, Oxford
University Press)
11
Rosemary Varley (2001) indicated that visual merchandising is used for aspect of
product management that is concerned with presenting the product within a retail
outlet to its best advantage.
Ko Floor (2006) observed that Visual Merchandising injects life into the store as well,
dramatizing the brand and merchandise offer.
Nirupama Pundir observes that visual merchandising is the “icing on the cake”. It’s
the first tactical representation of projected merchandise that the customer will see.
12
Research Methodology adopted
Research in common parlance refers to search for knowledge
The term research refers to the systematic method consisting of enunciating the
problem , formulating a hypothesis collecting the data , analyzing the facts and
reaching the certain conclusions either in the form of solution towards the concern
problem or in certain generalization for some theoretical formulation .
Research Methodology is a way to systematically solve the research problem .It may
be understood as a science of studying how research is done scientifically.
For completing the project work, data inputs were collected from the following
sources:
Primary Data:
 Collected data through discussion with the Sales manager/Area sales
manager of PepsiCo.
Secondary Data:
 Collected data from personnel manual of Pepsi.
 Collected data from different magazines, journals, News papers and Internet.
Research method being followed is Survey Method and Observations. The

sampling unit is the basic unit containing the elements of the population to be
sampled. Sampling unit for the study include different retailers of Central Delhi.
After covering particular market data digging is performed and consolidated results
of each market is shown in organization in graphical format along with
suggestions/scope of improvement to maximize market penetration of our product.
This easy to understand data present the unbiased picture of market to the
13
organization and helps them to create value for their product to customers by giving
them better services, higher management by letting them know their soft spots and
finding areas of immense potential in markets .Output of this survey was given as
feed back to Territory Development Manager and Area Sales Manager ,which when
consolidated is presented to upper management ,discussed in organizational
reviews .Area wise input is given to central executive of that region enabling him to
know the opportunities available for him to do more business which in term helps him
to achieve his target and ultimately yielding to better appraisal and growth in firm.
14
FMCG Industry Snap Shot:
Indian FMCG Personal care &

Steady double digit
industry size Food products
growth in the
estimated at dominate the
sector
around US$ 25 bn. sector
Many categories Rural India

are currently small contributes c. 33%
andoffer huge of the overall
potential FMCG sector
FMCG industry size

In Rs billion MAT DEC 2008 MAT DEC 2009
FMCG Industry Size 1,023.9 1,161.1
Growth rate (%) 13.4%
Source: AC Nielson
15
Category Wise Share of Sector:
hair care fabric care Hair Care

7% 11% 7%
OTC products
4%
baby care
2%
others Food Products
5% 40%
household
4%
Personal Care
20%
Source: AC Nielson
40% share of food products in F.M.C.G offers whole set of opportunity for juice
segment.
FMCG Growth: urban and rural
16
Juice Market -India
Indian Juice industry has emerged as a great opportunity for non-alcoholic drinks
market and poses great opportunity for many firms.
According to RNCOS (industry research firm) latest research, “Indian Non-Alcoholic

Drinks Forecast to 2012”, the juice market (including both fruit and vegetable) has
emerged as a fastest growing segment of the Indian non-alcoholic drinks market
over the recent past. Market research foresees the Indian market for fruit/vegetable
juices to grow at a CAGR of around 24% (in volume terms) and around 30% (in
value terms) from now till 2012.
It is learnt that convenience and natural taste together with health-consciousness

has played an important role in the growth of Indian juice market in recent years.
Sales have been boosted by the changing lifestyle of the Indian middle-income
group amid rapid urbanization. Furthermore, it has been seen that cola sales have
fallen dramatically after rising health concerns associated with it and this seem to
have benefited the fruit beverage industry. Tetra packs have emerged as a boon for
providing practically fresh and preservative-free juice.
Number of Indian players have been entering or expanding their portfolio into the
segment, after acknowledging the enormous future market potential. Dabur India, for
instance, recently planned to expand its offering under flagship fruit drink brand
'Real'. It is also planning to add two more variants as it eyes a bigger pie of the
Indian fruit-based juice market. Another player, Parle Agro, the maker of mango
drink Frooti, announced its entry into the 100% juice market in late 2008. Other
major brands include PepsiCo’s Tropicana and Coca-Cola’s Minute Maid.
17
India: Consumption Story
Estimated juice market in India is worth RS 600Crore.So with an ever-growing
customer base of Middle- Class, juice making companies will have wider access to
consumers who can shell out money to buy juices.
So we can say with ever increasing disposable income and increasing awareness
among consumers there is immense potential in Juice market in upcoming years.
18
Segmentation analysis for fruit juice
Introduction:
India is the second largest market for foods and vegetables in the world. The
production of fruits account for 48.5 million tones. However, the fruit juice market
has not been fully tapped because of poor infrastructure and storage facilities, and
highly unorganized market.
However, with people turning more health conscious, the non-carbonated beverages
have become one of the fastest growing businesses. The major growth drivers in
fruit juice market are increase in health consciousness, disposable incomes, and
more sophisticated cocktail culture. The category of fruit juices are dominated by
Pepsi with its brand Tropicana, Dabur Foods with its brand Real, Coca Cola India
with its brand Maze. The market now has a variety of fruit juices like 100 % fruit
juice, nectar, fruit drinks, fruit-based milk drinks and fruit-based soya milk.
Geographic segmentation:
The fruit juice market share is concentrated in the metros like Delhi, Mumbai, Kolkata
and Chennai; mini metros like Benguluru, Hyderabad, Pune, Chandigarh,
Ahmadabad and small cities like Ludhiana, Amritsar and Jalandhar.
The growth of the fruit juice market increased with the proliferation of the
supermarkets and malls in the metros and mini-metros.
As a growing category, fruit juices must fight the battle to win the shelf space of
markets. Hundreds of new beverages are introduced every year. Even though more
supermarkets are being built in a larger size, their shelf space is still unable to
accommodate all of these new beverages in the market.
Demographic segmentation:
The regular consumers of fruit juices are children, educated housewives, executives,
working professionals, young health-conscious adults and the ageing population.
The fruit juice companies have targeted all the age groups by different juices. The
customized packaged fruit juices are targeted at kids below 6 years. They are
available in number of flavors and fortified with calcium which is required in higher
19
quantities by children below 6 years of age. Further, they are available in 200 ml
packs which are just right for kids.
The different pack sizes like the half and one liter pack are aimed at increasing the
in-home consumption of juices.
Fruit juices are an instant source of energy which helped in tapping the
sportspersons and kids who are actively involved in sports. For example, Pepsi’s
Tropicana has tied up with equestrian sports and polo clubs to build bridges with the
well-heeled young adults.
The increasing cost of health care has helped widen the customer base to the
ageing population. Also, as fruit juices are rich in energy and nutrients, ill and post
surgery patients on liquid diet have increased the customer segment.
Socio-economic segmentation:
The fruit juice market has shown a tremendous growth in the recent years. One of
the major reasons for this is the increase in the disposable income. Generally,
individuals belonging to higher and middle socio-economic strata are the regular
consumers of packaged fruit juices. However, the 65 ml packs of mango Frooti
launched in Pune by Parle Agro for Rs. 5 has aimed at broadening the socio-
economic customer segment.
Psycho graphical segmentation:
Healthy living is a growing trend. However, fruit juices have more to offer than just
health. They provide an easy gateway to a healthy lifestyle. Consuming fruit juices is
almost an effortless switch compared to dieting or exercising and it does not require
major behavioral change. Active and health oriented people are no longer the
primary consumer of fruit juices. Nowadays, the consumer base for fruit juices is
broader. These products attract a wide range of consumers ranging from those
having specific health needs to those simply looking for healthy refreshments. In the
next few years, the fruit juice industry will be challenged by these savvy, confident,
and opinionated consumers. They no longer see these beverages as simple thirst
quenchers with health benefits. They see these products serving other needs that fit
a simple and logical proposition, such as ease of preparation, high level of
20
availability, ergonomic packaging, portability, and other factors that make up an
individual's perception of value.
In order to attract the kids segment, the Tetra packs have animated fruit characters
which communicate the fun, taste, and nutrition aspect. Moreover, the parents can
give their children a portable beverage that is a healthy alternative to the nutritionally
bankrupt soft drinks. They are designed in such a way as to fit in the Tiffin boxes.
Further, there has been an increasing interest in more natural, organic products.
Consumers perceive this as the next best thing to having a fresh fruit. Convenience
is no longer the selling point, the naturalness is.
However, there are certain consumers who are wary of packaged food, as they feel it
has preservatives and are not fresh. Thus, companies like PepsiCo, Dabur Foods
Ltd. have developed preservative free fruit juice offering consumers with a great
taste and wholesome nutrition of freshly squeezed juice in hygienic and attractive
packs.
However, despite of health benefits, some youngsters love to drink only carbonated
soft drinks. Thus, some companies have developed carbonated fruit juices which do
not contain caffeine and caramel coatings that are harmful to health.
The increased consumer interests in fruit juices can also be attributed to the addition
of minerals, vitamins and herbs associated with health, vigor, longevity and
enhanced quality of life,. There is a niche which is now demanding more top quality,
premium products and produced with added vitamins, minerals, fibs, soy or omega-
3. There are niche customers who take juice as a part of their diet and do not bother
about the taste.
For many consumers, flavor is the deciding factor. While orange, apple and
mango dominate the market, other juices such as grapefruit, watermelon and
orange-carrot combination are also appealing to some. In order to match the
traditional taste buds, traditional recipes like Aaam ka Panna and jamun variants
have been introduced in the market.
Conclusion:
Product development and positioning will need to become more targeted,
shifting from mass market to a mass customized approach in which particular
audiences are identified by lifestyle, ethnic group and other factors. Thus, the fruit
21
market is very lucrative. Among the market drivers are the increasing cost of
healthcare, ageing population, consumer health awareness and choice and
scientific evidence of certain ingredients.
22
Details of Actual work undertaken
Tropicana-Impulse Buy
PepsiCo sees Tropicana as an Impulse buy in India hitherto and not a planned
purchase. Aim of Tropicana division is to make it a planned purchase within Indian
community and make it a part of consumer’s daily breakfast. Impulse buy means an
unplanned buy .When a family is going to market for grocery shopping, name of
Tropicana Juice is never mentioned in the shopping list. It is only at the moment
when consumer enters a shopping store and sees Tropicana he picks it up and buy.
So SHELF-VISIBILITY is an important facet for sales of Tropicana. F.M.C.G goods
like tooth paste, soap are planned purchase.
Aim of Tropicana Division In PepsiCo’s Gurgaon office is to make Tropicana a
planned purchase rather than an impulse buy.
Tropicana: Extremely Lucrative product for Retailer
Being a great health product for consumer it is also a very lucrative product for
retailer as well. It offers a trade down margin of 15% in addition to additional
scheming that can go up to 5% for Traditional Trade. Margin of Distributor is 5%.
For easier assimilation look at the below table
Tropicana 1 L Price INR

Cost Distributor 62.10
Cost Retailer 65.21
Cost Consumer (M.R.P) 75
Margin Retailer 9.78
So a 1L pack of Tropicana with M.R.P 75INR cost 65 INR to Retailer generates a

handsome margin of 9.7 INR. So a Wills Navy cut Cigarette costing 5INR generates
23
margin of 50paisa to retailer. So on selling 20 cigarette retailer generates a revenue
equivalent to selling 1 L Tropicana. So a sale of 100 INR retailers of 20 cigarettes
makes the same amount from sale of 75INR Tropicana 1L.
Classification of Market: Delhi & NCR
24
In Delhi Tropicana and Gatorade is sold in 3 trades
Modern
Trade
Stand
Alone Market
Modern Classification:Delhi&NCR
Trade
Traditional
Trade
1. Traditional Trade-Traditional Trade is defined as all that trade that flows through
traditional outlets, such as kiosks, corner shops, local mom and pop shops, open
markets, etc. It represents all trade with the exception of that which flows through
retail chains, supermarkets, or super stores
Key Characteristics
a) Traditional trade is characterized by a large complex network of
independently owned retailers and distributors carrying primarily local or
regional brands.
b) It is the prevailing form of consumer trade in emerging markets.
c) It can be difficult to penetrate for both national and multi-national firms given
its highly fragmented nature, yet it serve as the conduit for reaching the
largest percentage of the consumer population
25
Importance of Traditional Trade can be very easily judged by the following data
For Tropicana division Traditional Trade forms heart of their business, so they
make their best to maximize the penetration at T.T.
Modern Trade:- Modern Trade is defined as all that trade that flows through retail
chains, supermarkets, or super stores, etc.
Key Characteristics:-
a) Above an indexed covered area (different users have different indices but
safe to say 3000 sq. ft. as the minimum)
b) SKUs above an index number (again, different for different users, but again
safe to peg it at above 2500)
c) Bulk Buying/ Inventory management
d) PAN India Presence.
e) Discounting (and frequently passing it out to customers as well)
f) Self Service with electronic billing and credit
26
g) Example: Big bazaar, Wal-Mart, , Reliance Fresh
S.A.M.T:-To much of the extent it is similar to M.T but it may/may not have
multiple chains of stores
.Example:-Garg -Dastak, Needs (18 stores in Gurgaon ,SRS ,Big Apple,
EzeeDay
Tropicana Share % T.T

35
30
25
20 2008
Share %
2009
15
10
0
Jan Feb Mar Apr May Jun Jul Aug Sep
Tropicana Share% M.T

35
30
25
20 2008
Share %
2009
15
10
0
Jan Feb Mar Apr May Jun Jul
27
Understanding Market Scenario:-Faridabad
Initially to have a better understanding of how things work and to get doubt cleared
we were instructed to meet Central Executive of Faridabad for two days.
Market Covered
Sector Covered Number of Shops

28 5
29 4
30 6
Mom and Pop Shops 12
Modern Trade Vishal Mega Mart,SRS
Smart Facts-Faridabad
a) Suburban City-Over 2 Million Population

b) Generate about 60% revenue of Haryana State
c) 50% I.T collected Haryana comes from Gurgaon & Faridabad
28
Learning’s: Faridabad-
Understanding Reporting Hierarchy and Responsibilities:-
One Central executive is responsible for execution of Tropicana in Faridabad. He

leads a team of three P.S.R (Pepsi sales representative) and three merchandisers
Before the morning visit start C.E talks with all P.S.R’s and list down progress of
previous day, compares it with actual target and gives them the feedback. Also he
asked for the current days plan and any issues being faced by them. Task of C.E is
to execute so it’s his responsibility that Products are being executed in the market up
to the mark, sort out any grievance that P.S.R is having issues with, fix out pricing of
Shop in Shop.
P.S.R is responsible for taking orders; managing new customer base and
merchandiser are responsible for doing visual merchandising on all the shops.
Mode of transportation for merchandiser is bicycle and for P.S.R is motor cycle.
Each P.S.R covers daily 30 shops and merchandiser 25 shops.
Every P.S.R has a Tropicana route book. It contains the following fields
a) Name of Shop.
b) Stock Details of Retailer
c) Order Details –Previous Order Details, Current order details
d) Replacements if any
This route book serves as input for distributor for order processing. Also data from all
P.S.R is consolidated by C.E and presented to Area Sales manager.
29
Myopic Hierarchy View-Faridabad
Central
Executive-1
Merchandisers
P.S.R-3 -3
This is a myopic hierarchy because it sees the market from a grass root level and
deals with people that only interact with retailers on a daily basis.
Understanding -Merchandising/ Displays: -
Proper merchandising and display at the store level promotes sales; it promotes the
consumer to switch over to the displayed brand ignoring existing brand loyalties; it
persuades him to buy “now” rather than latter; and it makes him buy more than the
originally intended quantity. All these are essentially sales promotional functions. While
advertising can only make a consumer aware of the product or generate a desire for it,
merchandising/ display often motivates a consumer to buy a product instantly. Point of
purchase displays are one of the most widely used sales promotions tools. With the
proliferation of brands, innovative displays have become a prerequisite for success. In
the store brands compete with each other for consumer’s attention.
30
Display Enhance Counter Pull
Display at the point of purchase can be rightly describe has a “clincher” in the marketing
process. When awareness and interest has been created in the consumers mind
through advertising and other promotional measures, a good display in the store can
help to clinch a sale. The displays are also effective in inducing brand switching. A
consumer normally goes to a retail outlet to purchase his usual brand. At the retail
outlet, a good display of a competition brand can command his attention and he may
buy the competing brand. In other word Good display can lead to impulse buying and
brand switching. A good display is the surest way to attract the consumers. It pulls the
consumers to the consumers. In fact, displays have their origins in the age old saying
that “goods well displayed are half sold”.
Display can be of various types- window display, wall display, counter display, aerial
display, or floor display, depending on where it is fixed. Display materials to constitute a
large spectrum, like posters, danglers, stickers, mobile wobblers, steamers, balloons,
etc. To enhance the display effect, manufacturers use several gadgets and approaches.
Illuminated designs, motion displays, sky writings, etc., add to the display effect. Some
companies organize display units locate them at vantage points within the store to
attract store traffic. Skillfully designed and strategically located display units can
enhance the sales appeal. More and more firms are going in for innovative displays to
give their brands visibility.
Distributor’s Role
There is one distributor that serves entire Faridabad region. Along with Tropicana he
also deals with other products of Godrej Ambi Pure, Parachute hair oil to name a
few. Distributor is appointed by the company and following points are taken into
consideration while appointing a good distributor.
a) Distributor needs to have good market reputation and links.
31
b) He should have good infrastructure to carry out day to day operational
activities-distributor must possess a warehouse, vehicle for delivering order
and manpower who can work as P.S.R and Merchandisers.
c) Other products that distributor sells also plays an important role and tells
about reputation and worthiness of distributor.
Salary of P.S.R and Merchandiser is paid by the distributor that later is reimbursed
by the company, .P.S.R and Merchandisers are not on company pay roles.
It must be noted that it is the Distributor and P.S.R who sells the product and not the
Company official. So an assiduous distributor is required to ameliorate the product.
Understanding Mechanics of Distribution Channel
The supply chain of products in the FMCG market in India is one of the longest
supply chains an industry could really have. There are as many as 5 levels of
intermediaries involved in the entire supply chain through which a product passes
before reaching the end consumer. What has been observed is that even though
these FMCG companies are big multinationals and Indian but face a major challenge
of making their products available in the market in the right quantities and in the right
time. This is simply because these companies don’t really have a wide network of
sales agents and other force which is required and is ideal for catering their products
to the markets.
This aspect is taken over by distributors, wholesalers and retailer whose margins on
these products actually double the price of these products when a final consumer
buys it. The margins kept by these intermediaries range from 2% to 5%.
The products in this industry are transported from manufacturing units via c & f
agencies or warehouse to distributors who further sell the same to wholesalers or
stockiest who finally sell it to the retailers in the market. These products are
transported either via roadways or railways within the domestic markets and
32
normally don’t take more than a week to reach the retailers. FMCG products are
normally a high volume ball game and products have to essentially be available in
the market at all given points of time and at all given points of purchase and
therefore the distribution activities are highly volatile and dynamic. The supply of
products takes place virtually on a daily basis in fixed quotas or otherwise, to
retailers as per their requisitions and the anticipation of demand and the
performance of products in the recent past. All such criteria are taken into
consideration before the quantum of products being dispatched to the next level of
intermediary. Since it’s a volume game, manufacturers make all possible efforts to
boost sales and promote their distributors to earn more and more orders from the
retailers and wholesalers. A close check is maintained on the flow of the products on
a daily, weekly, fortnightly and monthly basis to determine the trend in the business
and flow of products and consumption. This activity also helps to find out drawbacks
of the distribution system, if any, and rectify them within time.
33
Distribution Cycle-Tropicana and Gatorade
Factory
Carry and Forward
Distributor Modern Trades
Wholesalers
Retail Trade
Consumers
34
Tropicana is manufactured in India in Pune. From Pune goods are supplied to Carry
and forward agent .Carry and forward agent furthers supplies it into two divisions:-
1) C&F Agent directly send the goods to Modern Trade like Big Bazar ,Spencer
2) C&F Agent send it to distributor.
Distributor further can sell the goods to retailers or wholesalers.

1) Wholesalers further sell goods to retailer which then is received by the
consumers.
2) Retailers receiving goods directly from company’s distributor can sell goods to
consumers.
Advantages of purchase from Companies Distributor over Wholesalers.
Company
WholeSalers
Distributor
35
Distributor Web in Delhi &NCR (Faridabad &
Gurgaon)
North Delhi East Delhi South Delhi

3 distributors 1 distributor 4 disrtibutors
West Delhi Gurgaon Faridabad

2 distributors 2 distributors 1 distributor
Central
Delhi
1 distributor
So there are total 12 distributors doing business for Tropicana.
36
Average Turnover per disributor(Rs Crore)
Avge Turnover
3.85
2.5
1.2
0.9
2007 2008 2009 2010
37
Faridabad Market:-
Faridabad is a developing city .Population is unevenly spread, some places are lying
vacant and some places are densely populated. Since, it is a growing market
retailers are very friendly .Width wise coverage is excellent and the company is
working on the concept of depth. It implies that number of shops covered is healthy,
but since it’s a growing depth of Tropicana can be grown, means more cases can be
sold.
In sector 28 there are line of shops that only keep Tropicana and not Real. People
are buying Tropicana and scheme of one glass free is doing wonders for company.
But places where Modern Trade and Traditional trade are located nearby concept of
cannibalization can be seen. A M.T offers Tropicana at Rs 60 where as T.T is selling
the same thing for Rs 75.So consumer prefers to go to M.T rather than T.T
Visual merchandising needs to tighten up .Attractive merchandising are missing

Proper Utilization of P.O.P material needs to be done.
Consumer trends differs according to areas (sector) Counter's Infrastructure & Stock
Holding Capacity differs according to the areas
Also consumer still think of Tropicana as imported product and very few people know
that it is a product of PepsiCo. So customer awareness is lacking
Since Faridabad is a growing city many educational institutes, hotels, private

organizations are mushrooming in the city, so there lies a big opportunity for
Tropicana to sell.
38
S.W.O.T analysis of Faridabad Tropicana Market
Strengths
Width-wise excellent coverage(e.g.: outlets

covered,facings,stock )
Aggressive sales team.
Tropicana monopoly
Excellent Push strategy implied.
Tropicana 100% enjoys image of quality health product among
health conscious.
Constantly updating counter network.
Latest glass promotion.
Weakness
Visual Merchandising -Meager share of eyeball of customer

Lacking PULL STRATEGY in terms of V.M.
Big fish eating small fish-independent retailers suffering.
Still looked upon as Imported product vis-a-vis Real.
Unlike C.S.D, dedicated chillers for Tropicana missing
Opportunities
Educational institutes-School, Colleges

Hospitals
Medical Store
Hotels
Government Undertakings
Threat
Cheap variant ofJuices
39
So, Faridabad is like a ticking time bomb for Tropicana that is still to explode and is
area of immense potential.
Survey Details:
Area assigned to me was Central Delhi.
Area Details
Central Delhi is an administrative district of the National Capital Territory of Delhi in

India. It is bounded by the Yamuna River on the east and by the districts of North
Delhi to the north, West Delhi and South West Delhi to the west, New Delhi to the
south, and East Delhi to the east across the Yamuna.
Central Delhi has a population of 644,005 (2001 census), and an area of 25 km²,
with a population density of 25,759 persons per km².
Central Delhi houses the central business district and high-rises. It includes
Shahjahanabad (Old Delhi) which served as capital of the Mughal Empire, and is
home to the monuments like the Delhi Fort and the Jama Masjid, Delhi's principal
mosque.
40
Birds Eye View-Central Delhi
Coverage Areas-Finding Tropicana Gaps
Areas given below were covered to find market gaps
S.No Area Name
1 Chandni Chowk
2 Karol Bag
3 Canaught Place
4 Patel Nagar –WestPatelNagar,EastPatelNagar,SouthPatelNagar
5 Old Rajinder nagar
6 Sadar Bazar
7 Pahar Ganj
8 Gole Market
9 Jhandewalan
10 Shadipur
11 Pahar Ganj
Questionnaire Details for Tropicana –Central Delhi
41
Serial .No Fields of Questionnaire Data to be filled
1 Name of Shop Shop Name
2 Address Shop Address
3 Contact number Phone number
4 Real Present Yes/No
5 Tropicana Present Yes/No
6 Real Facing Number of facings of Real
7 Tropicana Facing Number of facings of Tropicana

8 Real Stock Estimation-Real Stock
9 Tropicana Stock Estimation-Tropicana Stock
10 Tropicana PSR present Yes/No
11 Gatorade Powder Present Yes/No
12 Visual Merchandising Excellent/Poor/N.A
13 Estimated Cases consumption in a week

Consumption(week)
14 Issues/suggestion Feedback retailer/surveyor
Survey Form-Explained Logic & Underlying Need
1) Name, Address and contact number of shop: - Enables speedy communication

for business transactions and concerned business related exercise. Also can be used
for future purposes, become a reusable component for the organization.
2) Real present:-: This tells about competitor’s availability.
42
3) Tropicana present:-: This tells about Tropicana’s availability.
4) Real Facing:-It implies how many packs of juices are kept on the shelf of retailer.
Company pays a price to retailer for good display. Good number of Real facing
display implies good sale of Real at that shop.
5) Tropicana Facing: - For every 8 facings company gives a scheming of 4% to retailer
after 3 months. Facings of Tropicana are compared with respect to Real to
guesstimate sales with respect to each other. Also it tells about how big is the share
of eyeball of customer with respect to Real
6) Real Stock: - Competitors judgment of stock.
7) Tropicana Stock:-Used with information of Real’s stock to know competitors status...
8) Tropicana PSR present: - This will tell that is P.S.R visiting newly opened shops in
the region or not. It is a hypothesis that for every 250 people there is one shop, so
with ever increasing population new shops open up in the reason. It is commonly
noticed that P.S.R are reluctant to visit new shops and keep on sticking to the old
route plan that they have. So this tells about the un –explored avenues for selling our
product.
9) Gatorade Present:- Aim of PepsiCo is to make sure that where 1L Tropicana is
present, there must be one mono carton of Gatorade present too .This is a classic
example of cross-selling and it checks with how much efficiency their workforce is
carrying out cross selling exercise.
10) Visual merchandising: Check if merchandising done properly or not. This tells the
real picture about how merchandisers are doing their job. A good merchandising is
vital for healthy sales, it act as a value add for Tropicana sales and become critically
important as Tropicana is considered an impulse buy.
11) Estimated Consumption: By seeing Tropicana stock we have to judge their
estimated weekly consumption, If stock is less than judgment then we can pursue
retailer to purchase more stock
12) Issues/Comments: - any particular issues seen/observed, suggestions by retailer or
any other issue noted by surveyor.
Sales exercise:-
Third phase of the exercise was to use the knowledge calculated from Phase 1 and
Phase 2 of the project and get some hands on experience with Sales.
43
Task allocated to me was to cover the traditional Trade of West Delhi that o not
poses a good picture for Tropicana Division and the same fact is evident from the
survey done on the same region.
Products to be sold were Tropicana and Gatorade(R.T.D and powder)
We were instructed to start from Distributor Point every day.
This used to serve the following purpose.
a) Give distributor the order received from market.

b) Calculate samples of product, example mono cartons for Gatorade.
c) To get acquainted with distributor activities
Pricing of Tropicana and Gatorade
Price-Case Quantity-Casing Margin Price-Casing Scheming

Tropicana100% 1L,12 piece 15% 887.0 1 carton free with 1
case or 8-10%
Tropicana 1L,12 piece 15% 782.5 1 carton free with 1
Nectar case or 8-10%
Tropicana 100% 200ml,30 piece 15% 573.9 1 case free with 5 case
Tropicana 200ml,30 piece 15% 469.5 1 case free with 5 case
Nectar
Gatorade R.T.D 500ml,24 bottle 10% 763.6 1case+2 bottle free
Gatorade 35 g,24 mono carton 18% 1830.5 1case+1 Monocarton
Powder (1 mono carton -6 free
sachet)
Sales Progress:-
S. Name of Shop Address Contac Quantity- Quantity- Billing(Tro Billing(Gat

No t Gatorade Tropicana picana) orade)
Numbe
r
1 Maa Durga Store A- 987170 2 1 case-100% 800 152.52
22,MainNaj 4070 Monocart
44
abgarh on-(1
road,Uttam orange+1
nagar lemon)
2 Madan store Prem 935009 9Monocar 0 0 686.34
nagar,near 4275 ton-(3
bikaneri orange+6l
sweet(land emon)
mark-metro
pillar
number
682-83)
3 Maa gaba trading wz- 253735 1 0 0 76.26
corporation 154,hastal 665 monocato
road,uttam n-orange
nagar

4 virdi Shop 921041 6 0 0 457.56
communication No1,Shiv 1097 Monocart
Nagar,Jail on-(3
Road orange+3
lemon)
Nanu bakers , Park, 928996 1 1case- 1252.02 76.26
5 Behind Jail 1947 Monocart 200ml+1 case-
Road, on orange 1L
Petrol
Pump, New
Delhi
6 Nirmal Medicos Sl-1/3,L- 931310 2 0 0 152.52
Block,hari 4016 Monocart
Nagar on-(1
orange+1
lemon)
7 Chaurasiya Pan el-6,sno1,L 1 0 0 76.26
Bhandar block,hari monocato
nagar n-lemon
8 Sindhi Sweet CA- 281242 6 Present NA 457.56
19A,DDA 58 Monocart
flats, Hari on-(3
Nagar orange+3
lemon)

9 Mohan Medicos 104- 259916 1 0 0 139.88
ganesh 44 Monocart
medicos on
orange+2
rtd
bottle(1
45
orange+1
lemon)
10 Family bakery b- 259903 2 Present 0 152.52
85,ganesh 05 Monocart
nagar on-(1
orange+1
lemon)
11 The body gear c-5,ganesh 921222 2 0 0 247.95

nagar 3415 Monocart
on-(1
orange+1
lemon)+3
rtd bottles
46
Estimation Exercise
Estimation plays a very vital part in business development .This helps the upper
management to set the road map for future and also let them know how can they do
more business. A good estimation give other employees in the department feedback
for their future tasks .For example if Tropicana wants to increase its sales by 70%
then it is result of some kind of estimation done earlier in business. Similarly a yearly
target of Central Executive of selling Rs 10 Crore juice is result of some kind of
estimation that is done earlier by upper management.
Tropicana department is following resource crunch. They are in dire need of skilled
manpower. So after doing market analysis across central Delhi next task was to
estimate how many numbers of shops are present in regions covered in central Delhi
where Tropicana and Gatorade can be sold.
After calculating amount of employees needed we have to find the associated cost
with them and then find out how much sales will they be able to generate. This data
is then used by company for further recruitments.
Following assumptions and facts were carried out while doing manpower estimate.
a) PepsiCo follows the hypothesis that for every 250 person there is one shop to cater
their needs.
b) Population in Delhi is growing at the rate of 1.4% every year.
c) Data of census-2001 was used and current population was calculated with the above
growth rate.
d) One P.S.R covers 180 shops in one week.
47
Estimation Exercise
Table -Manpower Estimation
Area Populatio Shop Shop Ratio=population/sho Shop PSR

n covered - covered p deficit required
2010 -me
Jhandewalan 141928.50 20 14 7096.43 547.71 3.04
Gole+Cp 525904.50 115 33 4573.08 1988.62 11.05
Karol Bag 519930.37 170 30 3058.41 1909.72 10.61
Sadar Bazar 86656.30 7 9 12379.47 339.63 1.89
Chandni Chowk 189583.59 17 25 11151.98 741.33 4.12
Rajendar 265863.38 65 14 4090.21 998.45 5.55
Nagar
Patel Nagar 3947349.1 117 43 33738.03 15672.40 87.07
6
Pahar Ganj 733325.45 125 15 5866.60 2808.30 15.60
Total 64,10,541 636 183 25,006 138
Understanding Fields -Manpower Estimation
S.No Field name Logic

1 Area Name of area under calculation
2 Population Shows estimated population 2010
3 Shop Covered This shows how many shops are there in this region
4 Shops Shops I covered
Covered-me
5 Ratio=populati This ratio shows that one shop caters to need of how
on /shop many people. Ideal figure is 250
6 Shop Deficit Tells how much unexplored shops are in this region
Deciphering-Man power Estimation
According to our estimation, there should be 25006 more shops in the above stated
areas that are still to be tapped in .Also we know one P.S.R covers 180 shops in one
week so to cover 25006 shops we need 138 P.S.R.
48
Sales Forecast Estimation from Institutions
This table shows immense potential in Institutions for Tropicana and Gatorade
Institutions Count Estimated Consumption 1 Yearly

month Consumptio
n
Embassy 58 20 case 1L100% Rs.
1,23,47,040.0
0
Psu Joint Venture 55 60 cases 200ml 100%,5 case Rs.
1L 2,56,17,900.0
0
Offices relating 11 60 cases 200ml 100%,5 case Rs.
Sports 1L 51,23,580.00
Tourism and 4 60 cases 200mL,2 case RTd,1 Rs.
Hospitality case powder 16,63,664.00
Sports Complex 16 25 Cases RTD,6 case Rs.
powder,5 case 200ml 54,19,200.00
Colleges Under 83 40 cases RTD,60 cases Rs.
Delhi University 6,46,40,400.0
0
Government 72 60 cases 200mL,5 case RTd,1 Rs.
Establishments case powder 3,45,81,600.0
0
BFSI 20 60 cases 200mL,5 case RTd,1 Rs.
case powder 96,06,000.00
Cooperatives 8 60 cases 200mL,5 case RTd,1 Rs.
case powder 38,42,400.00
Educational and 93 60 cases 200ml,15 cases Rs.
Training RTD,2case powder 5,52,25,260.0
0
Cultural 21 60 cases 200ml,15 cases Rs.
RTD,2case powder 1,24,70,220.0
0
Hospitals(2006) 140 50 cases 1l,50 case 200ml,4 Rs.
case powder,5case RTD 14,14,23,240.
00
49
Hotels 72 60 cases 1L,10 cases 200ml,20 Rs.
case RTD 4,59,82,080.0
0
Private Engineering 85 60 case 200ml,5 case Rs.
Colleges(IP Gatorade powder,case 10 RTD 5,21,83,200.0
university) 0
Gymnasiums 750 20 case RTD,5 cases powder Rs.
21,96,90,000.
00
Schools 4862 40 cases 200ml,5 cases Rs.
RTD,5 cases Gatorade Powder 1,42,61,14,06
0.80
Total 6350 Rs.

2,11,59,29,84
4.80
50
Understanding Yearly Sales Forecast:-
An institution is another dimension where lucrative business opportunity exists for

PepsiCo. From institutions we mean school,colleges,gymnasiums etc.These are the
places from where organization gets huge volume and since FMCG is largely a
volume based industry they play a very vital role for business growth. Tapping
institutions is a major concern for Tropicana department and leaving any of the
institutions means leaving lots of stones untouched and thereby not tasting a big
amount of business chunk.
According to our estimate there is an estimate of 211 crore that can be generated
from these institutions wit in one year. A mammoth 67% of business comes from
schools, followed by 10% for gymnasiums and 7% from hospitals.
School domination also helps company to form a stable customer base because
children who are drinking Tropicana since their childhood will keep on using their
services as they grow up.
51
Interpretation and Analysis
Market under Scanner:-Karol Bag
Karol Bag Tropicana Status

No Juice Market Real Only Tropicana Only Both Present
13% 3%
53%
30%
Gatorade Availability Status-KArol Bag

Shops Gatorade Present
11%
Shops Tropicana Present

89%
Shops No Juice Tropicana Gatorade Both

Real Only
Covered Market Only Present Present
30 4 9 1 3 16
52
Karol Bag:-Deciphering Ground Reality
Karol bag, being a shopper’s paradise attracting high footfall of 2000 people a
minimum to say presents a huge opportunity to Tropicana and Gatorade. With
Gaffer-Market nearby it also attracts a lot of customer.
30% of Karol Bag has Tropicana Share, 3% is the share of Real whereas a
staggering 54% is a non juice market that in itself is a hidden opportunity to increase
business of the Tropicana.
Out of 16 shops where Tropicana is present ,Gatorade is present in only 3 shops

,making it present in only 11% of shops leaving out huge chunk of 89% of
Tropicana present shops. So there is a huge scope of improvement for Gatorade.
In W.E.A Karol bag P.S.R comes to take order at six in the evening. Since, that is a
peak season for retailers want P.S.R to come in morning. It should be noted that
Dabur’s P.S.R arrives at 12 P.M in those shops. Tropicana and Gatorade are
completely missing from 7 eating joints in Gaffar Market located just on the road
side.
Overall looking at the big picture a great execution and sincere efforts of Central
executive make it strength for Tropicana. Conversion of 54% non juice market into
juice market succored by leadership of Tropicana presents Karol Bag as a place of
enormous opportunities to “mint money” .
53
Market under Scanner-Gole Market, C.P, Pahar Ganj
C.P,Paharganj,Gole Market-Tropicana status

no juice real only
21% 6%
trop only
45%
real+trop
27%
Gatorade Cross Selling Status

11%

89%
Consolidated Data => Gole Market, C.P, Pahar Ganj

Real Only
33 7 15 2 3 9
54
Gole Market, C.P ,Pahar Ganj:-Deciphering Ground Reality
Tropicana’s Share is 46% in Gole Market,CP,Pahar-Ganj. ,6% is the share of Real
whereas 21%% is a non juice market that in itself is a hidden opportunity to increase
business of the Tropicana and at 27% shops both Real and Tropicana are present .
Out of 33 shops where Tropicana is present, Gatorade is present in only 3 shops

,making it present in only 11% of shops leaving out huge chunk of 89% of
Tropicana present shops. So there is a huge scope of improvement for Gatorade.
In Shaheed Bhagat Singh market visual merchandising needs an overhauling .In

spite of being available across the entire width showcasing definitely needs
improvement
Adding to it, Tropicana’s complete range of 100% is missing from A-class counters.
Gatorade and Tropicana were found absent from the canteen of Lady Harding
medical college.
Overall looking at the big picture a great execution and sincere efforts of Central
executive make it strength for Tropicana that can further be strengthened.
Conversion of 21% non juice market into juice market, presence of canteen of
prestigious Lady Harding College combined with great visual merchandising
succored by posh residence makes this region a ticking time bomb that is still to
explode.
55
Market under Scanner-Chandni Chowk
Tropicana Status-Chandni Chowk

real only
12% real+trop
8%
no juice
80%

100%

Real Only
25 20 0 3 0 2
56
Chandani Chowk:-Deciphering Ground Reality
Chandni Chowk presents a very sorry picture for Tropicana and Gatorade.
Staggering 80% is a non juice market with 12% real domination. Width wise and
depth wise coverage of our product here lacks as Tropicana is found in only two
shops .Out of 25 shops P.S.R has visited only two shops which cut a sorry picture for
Tropicana and Gatorade.
Chandni Chowk forms heart of Old Delhi and attracts a lot of people including many
foreigners who visit daily with high brand awareness. There are many eating places
here and Tropicana and Gatorade can be made parts of many stores around here
So we can say Tropicana Division is keeping many stones untouched in this region.
A positive point of view can convert this road block into successful business
avenue for Tropicana if execution is done correctly and up to the mark with strong
merchandising.
57
Market Under Scanner-Jhandewalan
Jhandewala-Status Tropicana
Gatoraid Only
7%
Tropicana Only
27%
No Juice
53%
Real Only
7%
Real+Tropicana
7%

17%

83%

Real Only
14 8 4 1 1 2
58
Jhandewalan:-Deciphering Ground Reality
Videocon Bhawan is the landmark for Jhandewalan. Tropicana domination is 9%
followed by real at 7%.Both products are simultaneously available with 7% shops
Mammoth 57% is the no juice market. Gatorade only covers 17% of all available
shops for Tropicana leaving a massive 83% shops untouched. This area is special
as it attracts a lot of educated and aware population due to presence of their
workplace at this location
Compared to real Tropicana poses as a winner but cross-selling of Gatorade needs
big needs improvement as only 17% of Tropicana present shops are covered by
Gatorade.
Visual merchandising needs a resurrection. Gatorade presence is not felt anywhere
in display except one shop, similarly no danglers, shine boards, banners for
Tropicana were present. Eating joints near cycle market and Videocon Bhawan are a
good place to do some major business of Tropicana 200ml and Gatorade R.T.D.
Merchandisers as well as salesman need to pull up their socks in this region to
explore its potential.
59
Market under Scanner-Sadar Bazar
SadarBazar -Tropicana Status

Real Only No Real No Tropicana
22%
78%

Real Only
9 7 0 2 0 0
60
Sadar Bazar:-Deciphering Ground Reality
Sadar Bazar on the footprints of Sadar Bazar presents a very sorry picture for
Tropicana and Gatorade. Tropicana is physically absents from all shops though
there are many locations where it can serve as hot cake.
Survey also reveals that people are interested in buying Tropicana and Gatorade but
No representative of Tropicana division visits here.
This place can also work as Great Avenue for selling juice in festival season. Sadar
Bazar is very famous part of old Delhi and attracts lot of localities as well as tourists
with high brand awareness. Every day it attract a huge footfall of not less than
7000 .So we can say Tropicana Division is keeping many stones untouched in this
Sadar Bazar.
A positive point of view can convert this road block into successful business avenue
for Tropicana if execution is done correctly and up to the mark with strong
merchandising Sadar Bazar can reap benefits for the Tropicana division.
61
Market under Scanner-South Patel Nagar
South Patel Nagar-Tropicana

Real +Tropicana
13%
No Real No Tropicana
31%
Tropicana Only
13%
Real Only
44%

Shops Tropicana Shops Gatorade
25%
75%
62
Real Only
16 5 2 7 1 2
South Patel Nagar:-Deciphering Ground Reality
Scenario of Tropicana domination comes to a halt at South Patel Nagar. Real share
is huge 44% when compared to Tropicana’s meager share of 12%.No juice market
comprises of healthy 31% with both products being present at 13% shops.
Gatorade has acquired 25% shops and it still have to cover 75% of uncovered
Tropicana stores. Also cross selling of Gatorade needed to be pushed.
Visual merchandising is good here but can be made better .
Out of 16 shops covered P.S.R has not visited 12 shops clearly telling the reason of
Tropicana lagging behind. With residential areas in the vicinity and common middle
class with increased spending power coming here, this area possess a very lucrative
market with enormous potential for rise of Tropicana and Gatorade.
63
Market under Scanner-East Patel Nagar and Rajinder
Nagar
East Patel Nagar, Rajinder Nagar-Tropicana Status
Real Only
14%
No Juice market
4%
Both Present
54%
Tropicana Only
29%
Gatorade Cross-Selling Status
Gatorade Present
23%
Tropicana Present
77%
64
Real Only
28 1 8 4 7 15
East Patel Nagar and Rajinder Nagar-Deciphering ground reality
Above avenue present a great avenue of business for Tropicana and Gatorade. With
affluent and highly aware customer base living in the vicinity this market poses a
huge potential for Tropicana and Gatorade. Tropicana is leading the area with 29%
exclusive availability with real having around 14% exclusive availability at the
stores .Both are present at 53% shops and meager 4% no juice market..
Just 4% of no juice market corroborates the statement that this place is a great place
for the Tropicana and Gatorade y.
Gatorade needs to push itself more in terms of cross-selling as currently it is

covering only 23% of Tropicana available shops with 77% untouched.
Visual merchandising is great at this place with two shop in shops also found.
Retailers are facing issue of delay in supply of Gatorade R.T.D (ready to drink)
.Keeping retailers happy, filling the gaps in the supply and growing width wise is the
key to success in the above mentioned area.
65
Market under Scanner-West Patel Nagar
West Patel Nagar-Tropicana Status

Real +Tropicana
21%
No Juice Market
50%
Tropicana Only
14%
RealOnly
14%

Gatorade Present
17%
Tropican Present
83%
66
Real Only
14 7 2 2 1 3
West Patel Nagar-Deciphering ground reality
In West Patel Nagar market real’s is exclusively available in 14% shops and same
stands true for Tropicana. Both of them are together present at 22% of shops. A
staggering 50% of market is no juice market.
Gatorade id present in only 17% coverage area of Tropicana shops.
With both competitors equally balanced one who will convert the 50% non juice
market into juice market will emerge as the winner. These new outlets will also make
product visible across the entire market. West Patel Nagar market is a great example
of traditional trade and successful execution with powerful merchandising over here l
enable access to whole new customer base and new opportunity for their ever-
growing business.
67
Interpretation and analysis for Sales
Exercise
We were able to sell 33 mono cartons of Gatorade, and 2 cases of Tropicana and
open 11 new accounts.
11 new sold 33 5 bottles 2 Cases 1 case

accounts monocarton Gatorade Tropicana Tropicana
opened gatorade R.T.D 1L 200ml
68
Tropicana
Rs.2052
Billing Amount
Gatorade
Billing Amount
Rs2675
69
a) After visiting West Delhi brief was re instated that there are a lot of market gaps in
execution of Tropicana and Gatorade.
b) Visual merchandising needs to be resurrected in this region to have a higher share

of eyeball of customer.
c) Clients are not aware of Brand Gatorade and most of them don’t know that it is a
quality product from PepsiCo
Monthly Sales All Shops Rs.18896

Yearly Sale-11 shop Rs.226752(Rs 2.26 L)
d) The body gear gym can do wonders for the sales of Gatorade and gives us an idea
that Gyms are the perfect place to sell Gatorade and generate lot of cash for the firm.
a. If one in one week we are able to sell 5 cases of R.T.D of Gatorade to Gym
(not a huge amount for gym with footfall of more than 100 a day) and 5 mono
cartons of Gatorade ensures a monthly sales of Rs 15268 and for mono
carton amount is Rs 1520.So yearly sales come out to be Rs 2Lakh app.
70
Competitor beverages Margin
Analysis:-
Competitor margin analysis is very important from Tropicana’s division point of view.
This enables them to keep a track on competition with latest findings..
This exercise is very exhaustive as retailers are reluctant to tell the trading prices to
anyone. Similarly it is a daunting task to find out distributors of all the competitors.
Understanding Questionnaire-Competitor’s Margin:-
S.No Field Underlying Reason

1 Company Name of the company e.g. Parle Agro
Name
2 Product About product of company e.g. Frooti
3 Pack Size Quantity of product –e.g. 200ml
4 M.R.P Maximum Retail Price
5 T.P(Trader Price at which trader receives the product
Price)
6 T.M(Trader Margin of trader in terms of percentage
Margin)
7 Distributor Price at which distributor receives the product
Landing
8 Distributor Margin of Distributor in terms of Percentage
Margin
9 Scheme Schemes offered with cases to traders/distributors e.g. 1 bottle
free with one case/additional discount in terms of percentage
Traders and Distributor Margins
71
Company Catego Pack Size MRP TP TM Distributor DM Schem
Name ry Landing es
PI Juices 200ml 22 19.1 15% 18.05 6.00% 5%
100% 3
200ml ROR 18 15.6 15.0 14.91 6.00% 5%
5 0%
1ltr 100% 85 73.9 15.0 69.73 6.00% 5%
1 0%
1ltr ROR 75 65.2 15.0 62.11 6.00% 5%
2 0%
Company Category Pack MR TP TM Distribut DM Schemes

Name Size P or
Landing
Parle Agro Frooti 200ml 10 8.60 14.00% 8.19 5.00% volume
based
1.2l 45 41.0 8.89% 39.05 5.00% volume
0 based
600 ml 25 22.9 8.40% 21.81 5.00%
0
2l 70 63.0 10.00% 60.00 5.00%
0
1l 36 31.6 12.00% 30.17 5.00% 1 peti+1
8 pack
400ml 20 18.0 10.00% 17.14 5.00%
0
Appy fizz 1l 50 45.0 10.00% 42.86 8.00%
0
Company Category Pack MRP TP TM Distributor DM Scheme

Name Size Landing s
Rasna Rasna 200g 35 32.5 10.00% 30.37 7.00%
m
5gm 2 1.8 10.00% 1.68 7.00%
Company Catego Pack MR TP TM Distributor DM Schemes
Name ry Size P Landing
Coca cola CSD 300 ml 12 10. 12.50 10.09 4.00 24 + two 3ooml
5 % % bottles
500 ml 23 20 13.00 19.4 3.00 24 + 3 bottles of
% % kinley
2L 60 54 11.00 51.9 4.00 9 + two 500 ml
% % bottles
72
Company Categ Pack Size MRP TP TM Distributor DM Schemes
Name ory Landing
Pepsi CSD 300 ml 12 11 8.30% 10.5 4.3 24 + 2
India %
500 ml 23 21.7 5.40% 24+ 2
5
1L 32 29.7 7.00%
5
2L 60 56.6 5.60% 55.1 2.8 9 + 2 600ml bottles
0%

MY CAN 15 13.2 12.00 24 + 2 CANS
%

NCD SLICE 25 23.6 5.60% 24 + 2
5OO ML
SLICE 50 47 6.00% 12 + 1
1.25 L

Nimbooz 15 13.7 8.60% 24 + 1 bottle of
350 ml Nimbooz & 1
Aquafina
Nimbooz 50 47 6.00% 12 + 1
1.25 L
Company Category Pack Size MRP TP TM

Name
MOTHER Chaach 450 ml 10 9.5 5.00%
DAIRY
0
sweet lassi 300 ml 12 11.508 4.10%
salted lassi 200 ml 7 6.706 4.20%
0
Nutrifit litchi 100 ml 11 10.505 4.50%
Nutrifit ROR 100 ml 10 9.5 5.00%
0
Full cream milk 1L 30 29.82 0.60%
single toned 1L 23 22.816 0.80%
milk
Double toned 1L 20 19.8 1.00%
milk
Standard milk 1L 18 17.802 1.10%
Company Name Category Pack M TP T Distributor DM Schemes

Size R M Landing
73
P
PepsiCo Aquafina(min 1L 13 11.3 12. 3 bottles on
eral water) 36 80 case
%

Camp Beverages refreshers 500 12 9.25 22 8.75 5.40 One bottle
Pvt. Ltd ml .91 % one case
%
1L 30 27.5 8 200 9.09 One bottle
% % one case
2L 50 48.3 3 43.3 10.3 One bottle
% 0% one case

McDowell Mineral 1L 12 5.6 53. 5 10.7
Water 00 0%
%

Royal Crown Cola RC cola 300m 12 9.33 22. 8.8 5.60
International l 25 %
%
600m 22 13.5 38. 12.29 9.20
l 4 40 %
%

Parle Agro LMN 200m 12 9 25. 8.69 3.50 2 appy fizz on
l 00 % 30 pieces
%
Company Category Pack MR TP TM Distributor DM Sche

Name Size P Landing mes
Nestle Lactogen ( Tin 500 gm 20 188. 9.00%
packing) 7 37
1000 41 373. 9.00%
gm 0 1

Westin Mineral Water 1 ltr 12 5 58.30% 4.1 18
%

Del Monte Juice 240ml 25 21.2 15.00% 20.18 5.00
5 %

Kissan Squash 700ml 95 85 10.52%

Kingfisher mineral water 1 ltr 12 7.9 34.10%
74
Company Category Pack MRP TP TM Distributor DM Sch
Name Size Landing eme
s
Amul Cool 220ml 22 19.8 10.00 19.2 3.00% 6+1
Café(milk) %

Gopalji Milk 200ml 15 10 33.33 9.6 4.00%
%

Mapro Squash 700ml 99 97.8 1.20% 97.31 0.55%

Bisleri mineral Water 20l 70 63 10.00 60 4.70%
%
5 ltr 40 35 12.50 33 5.70%
%
1 ltr 15 11.2 25.00
5 %

Coke Kinley 1 ltr 13 11.3 12.80
3 %

HEINZ Glucon D 100 20 16 20.00 20%
gm % extr
a
200 37 29.6 20.00 20%
gm % extr
a
500 82 65.6 20.00 20%
gm % extr
a
1000 130 104 20.00 20%
gm % extr
a

HEINZ Orange D 100 25 20 20.00 10%
gm % extr
a
200 46 36.8 20.00
gm %
500 101 80.8 20.00
gm %
1000 175 140 20.00
gm %

Mehsana Amul powder 500 115 104. 9.00%
dist. gm 65
75
Coop.
milk
producer
union
1000 222 202. 9.00%
gm 02

76
Company Category Pack M TP TM Distributor DM Schemes
Name Size RP Landing
Surya Fruits & Freshgold 1l 70 59. 15.00 56.67 8.75 8-20%
Agro 50 % %
TUNIP AGRO Onjus 1l 10 85. 15.00 80.95 12.5 1+1(prom
LIMITED 0 00 % 0% otion)
KDD Juices 1l 75 61. 18.00 58.57 7.00 4-10%
50 % %
85 69. 18.00 66.38 7.00
70 % %
Kraft Foods Tang pouch 4 3.5 12.50 3.33 5.00
0 % %
500g 80 70. 12.50 66.67 5.00
00 % %
Cloud 9 Juice 1I 75 52. 30.00
5 %
1I 85 59. 30.00
5 %
HALDIRAMS KHUS 700 12 95. 26.00 84.95 12.0
ML 0 15 % 0%
FDC ELECTROL 21.80 75 11 582.0 10 10.0 22+3

g 0% 0%
RED BULL - 350ml 85 73. 15.50 68.43 5.00 1 case + 1
normal 91 % %
RED BULL - 350 ml 85 73. 15.50 68.43 5.00
sugar free 91 % %
hamdard Roohafza 1I 10 96. 8.00 91.13 5.60 1-5%

5 6 % %
Heinz Glucon D 1kg 17 157 10.00 149.28 5.50

5 .5 % %
500gm 82 73. 10.00 69.95 5.50
8 % %
100gm 25 22. 10.00 21.32 5.50
5 % %
Findings of Study:-
Findings of Phase 1 of Project
77
Summarized data s for Central Delhi is as follows
Area Outlet- Real Tropicana Both Gatorade No
Covered Only Only Present Present Juice
South Patel 16 7 2 2 1 5
Nagar
Sadar Bazar 9 2 0 0 0 7
Jhandewalan 14 1 4 1 1 8
RajendraNagar, 28 5 7 15 8 1
East Patel
Nagar
West Patel 14 2 2 3 1 7
Nagar
Karol Baag 30 1 9 16 3 4
CP,Paharganj,G 33 2 15 9 3 7
olmarket
Chandani 25 3 0 2 0 20
Chawk
Total 169 23 39 48 17 59
Consolidated Graphical Findings –Central Delhi
78
Central Delhi Status
REAL ONLY
14%
NO JUICE
35%
TROP ONLY
23%
BOTH PRESENT
28%
Cross Selling-Gatorade Central Delhi

Gatorade Presnece
16%
Tropicana Presence
84%
79
Findings Consolidated –Central Delhi
Below are the consolidated findings for Central Delhi
80
Market Share in %
23%is the exclusive share of Tropicana whereas for real figure

stands at 14% with both being together present at 28%.
35% is the no juice market.
Market Share In Figures
Out of 169 shops covered in central Delhi there are 23 shops where
only real is present,39 shops have only kept Tropicana ,48 have kept
Tropicana -Real both and 17 shops are the new shops discovered
where hitherto neither Real nor Tropicana is present.
Market Gaps
Tropicana is completely absent from Sadar Bazar.

Chandni Chowk -present in 2 shops only
Gatorade is completely absent from Sadar Bazar,Chandni Chowk.
Tropicana Domination
Karol Bag,Pahar Ganj,C.P

Gole Market,Jahnde Walan
East Patel nagar,Rajinder Nagar
Real Domination
South Patel Nagar,Sadar Bazar,Chandni Chowk
Gatorade Presence
Gatorade is present in only 17 shops

Ideally Gatorade should have been present in 89 shops
Cross Selling -Gatorade
Best Performer-East Patel Nagar,Rajinder Nagar,South Patel Nagr

Poor Performer-C.P,Pahar Ganj,Paharganj,Karol Bag
Consolidated Graphical Findings West Delhi
81
Status Tropicana-West Delhi
NO JUICE
10% REAL ONLY
33%
BOTH PRESENT
51%
TROP ONLY
6%

Gato Present
22%
Trop shops
78%

Real Only
169 14 11 57 30 87
Areas Covered –West Delhi
82
S.no Area Covered
1 Ashok Nagar
2 Hari Nagar
3 Rajauri Garden
4 Fateh Nagar
5 Tilak Nagar
6 Ramesh Nagar
7 Uttam Nagar
8 Vikaspuri+Bodella
9 Asha Park
10 Janakpuri
11 Moti Nagar
12 Kirti Nagar
This data was collected by other team members
83
Consolidated Graphical Findings-North Delhi
Tropicana Status North Delhi

NO JUICE REAL ONLY
12% 29%
BOTH PRESENT
46% TROP ONLY
13%

Trop shops Gato Present
22%
78%

Real Only
142 17 19 41 44 66
84
Area Covered-North Delhi
This data was collected by team members.
S.No Area Covered

1 Kamla Nagar
2 Vijay Nagar
3 Parmanad Colony
4 Gujrawala Town
5 Munshi Ram
6 Model Town II
7 Model Town III
8 Model Town I
9 Derawal
10 Ashok Vihar
11 Deep Market
12 Shalimar Baag
13 AL Market
14 Kohat Enclave
15 Peetampura
16 Mukharji Nagar
17 Nirankari Colony
18 Rohini,Sec 15
19 Rohini ,DDA market
20 Rohini,Sec 8
21 Rohini,Sec 7
22 Outram Lane
23 Hakikat Nagar
24 Hudson Lane
25 Kingsway Camp
26 Roop Nagar
27 Ghanta Ghar
28 Sabzi Mandi
29 Rohini,Sec 3
30 Rohini,Sec6
31 Rohini,Sec11
32 Rohini,Sec9
Consolidated Graphical Findings-East Delhi
85
Tropicana Status-east delhi
No Juice REAL ONLY
12% 12%
BOTH PRESENT
35%
TROP ONLY
41%

gatorade
5%
Tropicana Availbale
95%

Real Only
144 26 90 27 8 77
86
Areas Covered-East Delhi
S.No Area Covered

1 Anand Vihar
2 Dilshad Garden
3 Karkarduma
4 Nirman Vihar
5 Pandav Nagar
6 PatparGanj
7 Madhu Vihar
8 Chandar Vihar
9 IP Ext
10 Mayur Vihar
11 Preet Vihar
12 Shakar Pur
13 Savita Vihar
14 Seelam Pur
15 Vasundhra Enclave
16 Vivek Vihar
17 New Kundali
18 Lajpat Nagar Amar
19 Sarai Julena
20 Ph2 Mayur
21 Sarita Vihar
22 MV PH3
23 Shrshtha vihar
24 New Ashok Nagar
Findings-Estimation Exercise
87
Shops Deficit
According to resource and shop deficit

estimation there iare around 25000
shops that are still untapped.
Resource Crunch
138 P.S.R are required to fill this gap

when 25000 shops will be discovered.
88
Finding Distributor details:-Unified
Reaching Distributor Point:-

There are 2 distributors for west Delhi. We were allocated Unified Distributor that is
hardly 1 km away from Hari Nagar Metro Station.
Diversification in Business
Other Companies Products that Distributor Have Kept:-
3M
Panasonic
Dr Fixit
Cells
Unified
Distributor-
otherproducts
89
Infrastructure:-
Distributor possesses the following infrastructure
1
1 storage
computer
house
operator
1
4 P.S.R,4
Tempo,2
Helper
cars,1bike Infrastucture
and
ManPower
a) Vehicles are required for delivery of goods.

b) Computer operator is responsible for generating invoices of orders and doing other
administrative tasks relating to accounts of Distributor.
c) Minimum base quantity Storage is Rs 2 Lakh set by PepsiCo.
d) Helpers act as drivers and assist P.S.R while they go to deliver the product
90
Expenses of Distributor:-
Being a distributor in F.M.C.G industry is not a easy job. There are lots of expenses
that distributors have to keep account of .So let’s look at the major expenses of
Distributor:-
4 P.S.R=Rs40000
Manpower 4 Helper=Rs 20000
Expense(Monthly) 1 computer operator=Rs10000
Diesel expense=Rs 10000

Other Drinking Water Expense=Rs3500
Expenses(Monthly)
Rs 835000
Approximate
Expenses Monthly
So in one month distributor spends around Rs 83500 as expenses
91
Dissatisfied Distributor:-
No I.T
supported
Application for
business
Replacement Distributor Slow

Policy reimbursement
Griveiance
Credit Policy
Distributor at unified is not happy with the business for the following Reasons.
1. Lack Of I.T Support from company:-Distributor also deals with products of

company like 3M and Dr.FixIT. Both of them had an online system where orders can
be taken online for delivery, discount is automatically generated while entering the
required order as well as generating bills online. Also it is clearly know that which
distributor is supplying which part of the state so crossing of defined regions do not
take place. Lack of such application from PepsiCo slowdowns the functioning of
distributor and causes inconvenience to him.
92
2. Replacement policy of company states that goods will be replaced when they
accumulate up to price of Rs 50000. This blocks the amount of Distributor.
3. Company is not giving credit to distributor. So when distributor buys from company
he has to take entire goods on cash .Lack of credit period clearly puts burden on him.
4. Reimbursements are very slow .Salaries of P.S.R, sampling amount, scheming
discount takes up to 4 months to clear. Distributor had blocked money of 4L still
pending to be approved for the month of March-2010.
93
Implications of the Study
Implications for Phase 1

a) Tropicana Division of PepsiCo is doing a good job in Central Delhi but there is huge
scope of improvement in terms of market Share .Clearly large chunk of sales is being
hampered due to untapped shops. Looking at the analysis done below:-
i. According to survey ,only 23 shops in Central Delhi have kept only
Real
ii. If P.S.R sells one case Tropicana 1L and one case Tropicana 200 ml
at one such store it will cost 1200INR(app)
iii. So sales from 23 such stores:-27600INR
iv. P.S.R goes to a store four times in a month for order then total sales
will be 110400INR(1.10L)
v. So in one year sale will be 1324800INR (13.24L).
b) Cross-Selling of Gatorade is not being done assiduously. P.S.R is not making

existent clients aware about Gatorade. Due to this sales is getting affected:
i. According to survey conducted Gatorade should have been present at
89 stores.
ii. If a sales man sells 3 mono carton each of both flavors of Gatorade
and 3 R.T.D (ready to drink) cost to shop keeper 550INR(app)
iii. So weekly sales from 89 shops=48861INR
iv. Monthly sales from 89 shops=195444INR(1.95 L INR)
v. Yearly sales from 89 shops=2345328(`23L INR)
c) Conversion of 35% no juice market into juice market will help company increase its
value.
i. Total 59 shops are classified as no juice market.
ii. If Tropicana can crack 40% shops(23 shops) and place goods worth
Rs 1000 over there.
iii. So weekly sales will be Rs23000
iv. Monthly sales will be Rs92000
v. Yearly sales will be Rs1104000(Rs 11 Lakh)
94
So from above calculation we can say Tropicana and Gatorade are
closing their eyes on sales of 47 Lakh yearly from Central Delhi from
current operational plans.This figure is only for the sample data
.Actual amount will post incremental growth to their business
d) P.S.R’s are not discovering newly opened outlets. This sort of shortcoming in the
Peak business season is not good for the business.
e) There is very little awareness about Tropicana in mind of customer. Most of the
consumers don’t know that Tropicana is a PepsiCo’s product and consider it an
imported product.
f) There is total lack of awareness about Gatorade. Despite being present in Indian
market for a long time most of the retailers/consumers are not aware of the product.
g) Merchandising is not up to the mark in Central Delhi .Being an impulse buy
merchandising plays an important role in selection of Tropicana by the customer.
Less share of eyeball of Customer is also affecting its sales.
h) Similarly visual merchandising for Gatorade is also very poor .
i) Due to movement constrains of merchandiser on bi-cycle his span of shops covered
is also hampers
j) Tropicana is not being sold in many institutional areas-like eating joints ,Five Star
Hotels , Gymnasium’s. So we can say Tropicana clearly needs to work on 80-20 rule.
k) Complete range of Tropicana is missing from many stores.
l) Soft Skills of P.S.R are not up to the mark.
Implication for Phase 2:-

1) Since, shop deficit and resource crunch has been identified –so there is certainly
some hidden business that will be generated Tropicana and some remuneration that
will have to be given to human resources.
2) Shop Deficit-25006.
a. If Tropicana is able to crack 40% of the above existing shops (10002 shops)
then there will be incremental growth in their business.
b. Say one case of Tropicana 100% is being placed at each of the counters then
weekly sales will be Rs 8001920(80Lakh app).
c. So monthly sales will be 32007680(3.2Crore app)
d. Thereby yearly sales will be 384092160(38 Crore app)
95
e. If only one mono carton of each flavor of Gatorade is kept at these new shops
weekly sales hit a amount of Rs1520304(Rs 15.2Lakh)
f. Similarly yearly sales will shoot to Rs18243648 (Rs 1.8 Crore).
3) According to manpower and resource estimation we need to have 138 P.S.R.
Tropicana had 19 P.S.R so we need to hire 117 human resources.
a. In hand Salary of one P.S.R Rs 9000
b. Yearly Salary of one P.S.R Rs 1053000
c. Yearly salary of one P.S.R Rs 1.08Lakh
d. Yearly salary of 117 P.S.R Rs12636000(1.26 Crore)
4) Assuming One Central executive handles 4 P.S.R so Tropicana needs to hire 30
Central executive. Hitherto Tropicana Division had 14 C.E ,So openings are for 16
C.E
5) Assuming Central Executives hired are of Level 1.
a. C.T.C of one C.E Rs 2Lakh P.A
b. Yearly salary of 16 C.E is Rs 32Lakh.
6) One Area Sales Manager handles around 4 Central Executive. So there need to be
one more A.S.M as there are already 3 Area sales Manager.
a. C.T.C of one A.S.M is around 6 Lakh P.A
7) Total Amount comes to be 16436000(Rs 1.64Crore)
Implications:-Phase 3.
1. Sampling at shops is a good way to sell your product. Client gets first hand feel about
the product and don’t forget it easily even in case if he is not buying it. Same stands
true for a new Product like Gatorade mix.
2. It is the distributor who sells the product in the market. Attrition rate of distributor is
not a good sign for the product. Same is the case for west Delhi .In past 2 years 22
distributors have changed where as in the same region Distributor of Real is selling
their products for the last 11 years .This is the biggest reason why reason why Real
sells like Hot Cake. Frequent attrition makes a parochial outlook for Tropicana and
that is why it is lacking in terms of sales.
3. So keeping distributor happy by giving him succor from companies side will reap
benefit for the customers and hence, increase value for the company.
96
Dabur’s Real-Edge over Tropicana
1. Dabur is operating in Delhi on whole sale business. Major selling is done by their super
stockiest
2. Dabur’s real have the first mover advantage in juice market whereas PepsiCo’s
Tropicana is following the catching up policy.
3. Dabur’s real has been voted super brand for three consecutive years which point out
towards “MAXIMUM SHARE OF HEART OF CUSTOMER” whereas no such user
support has been earned by Tropicana.
97
Recommendations made
1. Cover all the market gaps in order to take pie of hidden business worth 47Lakh INR
according to sample size.
2. Execute plan of estimation exercise to reap benefit of 38Crore Hidden Sales for
Tropicana and Rs 1.8 Crore for Gatorade in one year.
3. Motivate workforce to discover constantly growing new shops.
4. Motivate workforce to implement cross-selling for Gatorade.
5. Tap in more and more institutes like hotels, schools, offices, gymnasiums to
implement 80-20 rule
6. Polish soft skills of P.S.R and make them more informed about the product so that
they can educate the retailers better.
7. Pull up the socks and resurrect visual merchandising to increase share of eye ball of
customer.
8. Send PSR and merchandisers to market on same vehicle .It will keep shopkeeper
satisfied as his Merchandising will be done on daily basis and sales man will not
have to hear about any issues regarding merchandising
9. Open more Shop in Shops in potential stores to increase customer base.
10. Have a retailer competition where retailer who will sell maximum juice in month will
get a prize. Record of sales can be checked from distributor. This will ensure that
store owner is motivated to sell the product to customer.
11. Invest with in quality man-power that will reap benefits for the department.
12. Work assiduously on Traditional Trade as it forms back bone of their business.
98
Benefits likely to accrue to the
company:-
a) Survey shows the organization market gaps. Company can use this information to fill
the gaps, in turn generating business and hence creating value for the customer as
well as to the organization.
b) They can work on their areas /shops which act as soft spots in terms of visual
merchandising to promote Impulse Buy from customer’s side. This will also help them
to properly utilize merchandising budget sanctioned from the higher management.
c) They can give better training and motivate employees so that execution is enhanced
and retailer’s knowledge about Tropicana and Gatorade increases. This will also
push up the cross-selling of Gatorade.
d) Their customer relationship will improve by better trained sales men.
e) Company can enhance the estimated data as they have better market knowledge
and subsequently form future plans for their sales.
f) Total 624 shops were covered by entire team. If AC-Nielson charges 12Lakh only for
telling names of 60,000 shops related to juice market then, Price of knowing name of
one shop turns out to be Rs20.This is the price of only for field in the survey form. For
14 fields amount rises to RS280 which implies one row of survey form costs Rs280
so price of knowing data of 624 shops comes out to be RS174720(1.74L).So
company saved money from this survey by effective resource utilization.
g) By seeing the hidden sales of 7.99 Crore T.D.M can calibrate monthly targets of
Central executives and set new monthly growths targets for sales in Central Delhi.
h) On similar grounds he can see how many new shops an existing P.S.R has to do to
achieve the target
i) Distributor will generate more business and have to manage his day to day
operational activity.
j) By seeing the margin of all the competitors PepsiCo can train its employees in such a
way that they can enable a better negotiation as they already know at what price
customer is getting the competitors product.
k) Competitors margin will let sales man know about customer’s proclivity for
exaggeration.
l) Working on keeping distributor attrition at a minimum bay will reap fruits for western
Delhi.
99
Limitations:-
It is well known fact that constraint and limitations are bound to be present in any
study do this also has some limitation as:-
1) As the project is prepared for academic purpose it suffers for the limitation of
the time and due to which an analytical study into all the strategies adopted by
the organization was not possible.
2) Lack of retailer’s interest to answer the questions is also an important
limitation.
3) Lack of knowledge of area has affected the research.
4) Retailers prevaricate sometimes and may give false and biased information
5) This report focuses on observations of one distributor only there might be
other unexplored waves in the ocean.
100
Proposed Implementation Methodology
1) Cover all the market gaps and successfully place Tropicana and Gatorade
over there.
2) Discover all the shops that are stated inside residential areas to gain access
to whole new consumer base and new business.
3) Increase work force to cater newly discovered market.
4) Make a target of discovering 15 new shops a month for P.S.R and give them
incentive if they achieve it.
5) Make a contingency plan. In case if store owner is not willing to keep
Tropicana sell him Gatorade Mono Carton and after some time when relations
become solid sell them Tropicana too.
6) Place at least one mono carton of Gatorade where 1LTropicana is present.
7) Place 1L Tropicana on all stores where 1 L real is present.
8) Give PDA to P.S.R to take orders.
9) Send P.S.R and merchandiser to cover a market on same day and ensure
their seamless conversation.
10)Fully utilize the P.O.P material so that visual merchandising attracts customer
to by the product.
11)Communicate with marketing team to introduce packs of 500ml for Tropicana.
12)Communicate with marketing team to introduce juice in smart food grade
plastic bottles.
13)Communicate with Production department to change the quality of packing
material as it inflates when water from chiller falls on it in case of electricity
breakdown. This make consumer feel that pack is spoiled.
14)H.R department should make sure that attrition rate is kept minimum for the
sales department.
15)For sales of Gatorade follow O.S.O.S -“ONE SHOP ONE SAMPLE”
principal.
16)Give credit of 15 days to distributor to ease of his burden
101
17. Send one person to take replacement at the end of month from Distributor.
18. Give I.T enabled web based application to distributor for stream lining process.
Request goes
Provide Login Place order to concerned Order
Ids to clients online to concerned recieved
distributor
a. That application can have a module where Logins are given to
retailers, enabling them to give order online, then that request is
automatically directed to concerned distributor hence, solving the
territory issue faced by Distributors and further it will put transparency
in billing and undercutting issues.
19. Work on replacement policy-send one person for replacement in one month at
distributor point.
102
Suggestions regarding further scope
of work
a) Areas that were missed not covered under survey due to lack of
knowledge of local market can be covered and their findings can fill
marketing gaps.
b) Process of how business is done with institutes need to be seen.
c) Effect of Tropicana/Gatorade Promotion on their sales is yet to be
explored.
d) Finding distributor landing price of beverages that cannot be found this
time.
e) Estimation calculated is soft on numbers especially for Gatorade. More
exposure to organizational behavior will certainly change the data.
f) In estimation exercise some facets are untouched. Work can be done
on finding number of Distributors required to accommodate newly
discovered gap. Similarly due to increased demand effect on C&F and
Factory production can be worked onto in future.
103
References and Bibliography.
1) http://www.delhigate.com/in2delhi/hotels.ht
m
2) http://delhiplanning.nic.in/economic%20survey/es
%202005-06/.../15.pdf
3) http://www.jnu.ac.in/facilities/listofhospitals.
htm
4) www.pepsico.com
5) http://www.dailyfinance.com
104

Juice Market Analysis-Tropicana & Competition

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Juice Market Analysis-Tropicana & Competition

Uploaded by

Copyright:

Available Formats

Qwertyuiopasdfghjklzxcva;pl;aloknm

Category Wise Share of Sector:.............................................................................16

FMCG Growth: urban and rural..............................................................................16

India: Consumption Story.....................................................................................................18

Psycho graphical segmentation:.............................................................................20

Details of Actual work undertaken......................................................................................23

Tropicana: Extremely Lucrative product for Retailer..............................................23

Classification of Market: Delhi & NCR....................................................................25

Understanding Market Scenario:-Faridabad...........................................................28

Understanding Reporting Hierarchy and Responsibilities:-....................................29

Myopic Hierarchy View-Faridabad..........................................................................30

Understanding -Merchandising/ Displays: -............................................................30

Understanding Mechanics of Distribution Channel.................................................32

Distributor Web in Delhi &NCR(Faridabad & Gurgaon)..........................................36

S.W.O.T analysis of Faridabad Tropicana Market...........................................................38

Birds Eye View-Central Delhi..............................................................................................40

Survey Form-Explained Logic & Underlying Need...................................................42

Pricing of Tropicana and Gatorade.........................................................................43

Understanding Fields -Manpower Estimation.........................................................47

Deciphering-Man power Estimation........................................................................47

Market under Scanner:-Karol Bag..........................................................................51

Karol Bag:-Deciphering Ground Reality.....................................................................52

Gole Market, C.P ,Pahar Ganj:-Deciphering Ground Reality.................................54

Chandani Chowk:-Deciphering Ground Reality........................................................56

Market Under Scanner-Jhandewalan.................................................................................57

Sadar Bazar:-Deciphering Ground Reality................................................................60

South Patel Nagar:-Deciphering Ground Reality.....................................................62

East Patel Nagar and Rajinder Nagar-Deciphering ground reality........................64

West Patel Nagar-Deciphering ground reality..........................................................66

Traders and Distributor Margins.............................................................................70

Below are the consolidated findings for Central Delhi............................................79

Consolidated Graphical Findings West Delhi.........................................................80

Areas Covered –West Delhi.................................................................................81

Consolidated Graphical Findings-North Delhi...................................................82

Area Covered-North Delhi....................................................................................83

This data was collected by team members.............................................................83

Consolidated Graphical Findings-East Delhi.....................................................84

Finding Distributor details:-Unified..........................................................................87

Reaching Distributor Point:-........................................................................................87

Juice Market-Tropicana & Competition Analysis

Need & Objectives of the project

On 17-04-2010 PepsiCo launched their new product Gatorade Sports Mix

The following are the objectives of the product undertaken:

1. Find the market “Where Dabur’s Real is present but Tropicana is

The entire project was divided into three phase:

Finding untapped market for tropicana

Calculating manpower needed to cover untapped shops

Hands on Experience for Tropicana/Gatorade

Marketing is an integrated communications-based process through which individuals

be satisfied by the products and services of others.

Marketing is defined by the American Marketing Association as the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging

as in shopping, or going to a market to buy or sell goods or services.

defines marketing as "The management process responsible for identifying,

anticipating and satisfying customer requirements profitably.

Marketing practice tended to be seen as a creative industry in the past, which

included advertising, distribution and selling. However, because marketing makes

extensive use of social sciences, psychology, sociology, mathematics, economics,

allowing numerous universities to offer Master-of-Science (MSc) programmes. The

times and the culture.

According to Boone Kurtz Mackenzie Snow, “Marketing is an organizational function

Market share, in strategic management and marketing is, according to Carlton

that is being serviced by a company. It can be expressed as a company's sales