Professional Documents
Culture Documents
On
PepsiCo
Award of degree of
2009-2011
At the outset, I would like to thanks PEPSICO for giving me the approval to
do this project in the organization, I am grateful to MR. ARUN GARG
(Territory Development Manager) and MR. VIPIN SINGH JADON
(customer Service executive) and MR. ANJAL NAGAR (marketing
manager) for the moral support, encouragement and generous assistance.
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TABLE OF CONTENTS
Declaration…………………………………..............
Acknowledgement…………………………………..
History of PepsiCo…………………………………..
SWOT ANALYSIS……………………………………..
Research methodology……………………………….
Findings………………………………………………
Conclusion……………………………………………
Suggestion………………………………………….....
Questionnaire…………………………………
References…………………………………………….
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Mission of PEPSI
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Vision PepsiCo's responsibility is to continually improve all
aspects of the world in which we operate
environment, social, economic creating a better
tomorrow than today."
Presented by: Javeria Kausar and Faisal Wazir PEPSI
COLA PAKISTAN 2
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Strategic Human Recourse Implication:
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‡ Good strategy and good implementation are the most
trustworthy proof of good management ‡ A strategic
plan, then, is the bridge to the future, which an
organization uses to lead from what it is to what it
envisions it can become
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Strategic Goals:
‡ To continue to be an organization providing the quality
products to the valuable customers. ‡ To select and
retain the professional people for the organization. ‡
To project an outstanding corporate image. ‡ To
satisfy the customer through extra ordinary service
and an excellent service along with the complete
tactical and operational support
Presented by: Javeria Kausar and Faisal Wazir PEPSI
COLA PAKISTAN 5
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Human Recourse Strategy at Pepsi Cola
Currently, Pepsi cola follows growth strategy which
includes the following strategies to be followed
further; ‡ Analysis/ identify new jobs/ recruitment and
selection ‡ Training and development ‡ Developing
career path/career counseling/ stress management ‡
Developing performance standard ‡ Manpower
Planning
Presented by: Javeria Kausar and Faisal Wazir PEPSI
COLA PAKISTAN 6
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RECOMMENDATION
‡ Being more proactive in presenting their views and ideas
whenever the need may arise and they should not
hold back any criticism that they might have regarding
any management decision. ‡ To be an active strategic
partner, they would also need to gain credibility so
that their ideas can be given due importance in
formulating a strategy. ‡ They can achieve this by
working closely with the line managers to enhance
their understanding of business that they are in
especially in terms of the value chain of Pepsi. ‡ By
taking such initiative, they will not only gain credibility
but they will enhance their own ability to help
formulate strategy at the top level. ‡ They should also
look into the option of delegating some of the HR
functions to line managers or outsourcing some of the
HR functions so that the HR mangers could focus
more on the strategic aspect of business.
Presented by: Javeria Kausar and Faisal Wazir PEPSI
COLA PAKISTAN 7
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CHAPTER -1
INTRODUCTION OF THE COMPANY
Pepsi is a multinational company in beverage industry. It is a well-known
brand. It has a good product line. All the products of Pepsi are popular
enough.
MISSION -
PepsiCo’s mission is “To be the world's premier consumer products
Company focused on convenient foods and beverages.”
VISION -
PepsiCo’s vision is put into action through programs and A focus
onenvironmental stewardship, activities to benefit society, and a
commitment to build shareholder value by making PepsiCo a truly
sustainable company SHARE HOLDERS PepsiCo (symbol: PEP) shares
are traded principally on the New York Stock Exchange in the United
States. The company is also listed on the Amsterdam, Chicago and Swiss
stock exchanges. PepsiCo has consistently paid cash dividends since the
corporation was founded.
PepsiCo Headquarters
The World Headquarter of PepsiCo is located in New York, approximately
45 minutes far from New York City. The headquarter in India has located at
Mumbai.
The Co-founder of the company is Mr. Donald M. Kendall
The President and Chief Executive Officer is Indra K.Nooyi.
PepsiCo Beverages
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PepsiCo beverage business was founded 1898 by Caleb Bradham, a New
Bern, North Carolina druggist, who first formulated Pepsi-Cola.
HISTORY OF PEPSICO
1902-- Bradham applies for a trademark with the U.S. Patent Office,
Washington D.C., and forms the first Pepsi-Cola Company .
1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even
more sales, the company begins selling its 12-ounce drink for five cents
(the same cost as six ounces of competitive colas).
1941--The New York Stock Exchange trades Pepsi's stock for the first time.
In support of the war effort, Pepsi's bottle crown colors change to red,
white, and blue.
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1963-- Pepsi-Cola continues to lead the soft drink industry in packaging
innovations, when the 12-ounce bottle gives way to the 16-ounce size.
Twelve-ounce Pepsi cans are first introduced to the military to transport soft
drink all over the world.
1970--Pepsi introduces the industry's first two-liter bottles. Pepsi is also the
first company to respond to consumer preference with light-weigh,
recyclable, plastic bottles.
1992-- Pepsi-Cola and Lipton Tea Partnership are formed. Pepsi will
distribute single serve Lipton Original and Lipton Brisk products.
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1994-- Pepsi Foods International and Pepsi-Cola International merge,
creating thePepsiCo Foods and Beverages Company.
1997-- PepsiCo. announces that it will spin off its restaurant division to
form Tricon Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC,
it will be the largest restaurant company in the world in units and second-
largest in sales.
PRODUCTS IN INDIA
1) Pepsi
2) Mirinda orange/lemon
3)7up
4) Slice
5) Mountain Dew
6) Lehar soda
7) Aquafina
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8) My Can
9) Tropicana Juice
10) Nibooz
Marketing mix is the combination of elements that are use to market the
product. There are four elements: Product, Place, Price and Promotion.
They are called the four Ps of the marketing mix.
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Promotion- Informing potential customers of the availability of the
product, its price and its place.
Product Mix
“Product” refers to the goods and services you offer to your customers.
Apart from the physical product itself, there are elements associated with
your product that customers may be attracted to, such as the way it is
packaged. Other product attributes include quality, features, options,
services, warranties, and brand name. A product should meet the needs of
a particular target market.
PRODUCTS
The group manufactures and markets Carbonated and Non-Carbonated
Soft Drinks and Mineral Water under Pepsi brand. The various flavors and
sub-brands are Pepsi, Pepsi My Can, Pepsi Diet, Mirinda Orange, Mirinda
Lemon, Mountain Dew, and 7up, Slice Mango, Slice Orange, Soda and
Aquafina, Tropicana, Tropicana Twister.
1) 7up Can
2) 7up
3) Mirinda Orange
4) Mountain Dew
5) Nimbooz
6) Pepsi
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7) Pepsi My Can
8) Slice
9) Tropicana Premium Gold Brand available in 250ml.
10) Tropicana Twister
1) Pepsi
2) Mirinda Orange
3) Mirinda Lemon
4) Mountain Dew
5) 7up
6) Soda
1) Pepsi Can
2) Mountain Dew Can
3) 7up Can
4) Mirinda Can
5) Pepsi Diet Can
1) Tropicana Twister
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Brand Available in (500ml)
1) Slice
2) Pepsi Diet
3) Aquafina
Brand available in (600ml)
1) Pepsi
2) Mirinda Orange
3) Mountain Dew
4) 7up
5) Soda
Brand Available in (1Ltr)
1) Aquafina Water
2) Lehar Soda
3) Pepsi
4) Tropicana Premium Gold
Brand Available in (1.2 Ltr)
1) Slice
2) Tropicana Twister
Brand available in (2 Ltr)
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Price of the Product
Product Bottle in MT
Price
200 ml 24
168
200ml (Tropicana Premium Tetra) 30
397
200 ml (Slice Tetra Pack) 24
216
300 ml 24
215
250 ml Can 24
330
330 ml Can 24
580
350 ml Twister 24
468
500 ml Aquafina 24
168
500 ml Slice 24
498
600 ml Soda 24
216
600 ml PET 24
444
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1 ltr. Aquafina 12
104
1 ltr. Tropicana Premium 12
713
1.2 ltr. Slice 12
510
1.5 ltr. Soda 12
207
2 ltr. PET 9
414
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PLACE
Distribution Objective
Minimize total distribution costs for a given service output.
Determine the target segments and the best channels for each
segment.
Objectives may vary with product characteristics.
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DISTRIBUTION CHANNELS (Pepsi)
There are two marketing channels that involve in the transfer of product
from the producer to the consumer. The intermediaries involved in the
transfer are distributors and retailers.
DISTRIBUTORS
Distributors are appointed agents of the company who make orders to the
company by paying in advance through drafts, stock the products in their
godowns and supply them to outlets through their fleet of delivery was and
a team of salesmen and drivers. They are allowed to sell to company's
product to the retailers in a specified area. The company divides this area
into routes. Each route is covered by one unit i.e. one de livery van, one
salesman one driver, one helper etc. These units and godown are their
main investment. Distributors have to invest in empty bottles and crates
too, so t hat they can maintain a specified quantity of reserve stock and
facilitate the quick rotation of glass crates.
RETAILERS
The sale of particular soft drinks depends a lot entirely on retailer’s wish.
Like if he does not keep Aquafina and if his shop is at the prime location
then certainly the customer with turn towards other cola drinks like Bisleri,
Bailley, Kinley etc. This all goes to prove that retailer is king. So retailers
require special focus from the company. Pepsi Co. helps the retailers to
serve its customer better by providing good margin to them for storing its
product using merchandising to improve in-store product display, installing
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cooling equipment in outlets to make the product ready to drink and offering
different promotion schemes to them time to time to push different brands,
Pepsi Co. Provides a fair margin of RS. 24 per crate to the retailers.
PROMOTION
This includes ad campaigns, sales promotions, new packages and brand
launches. Events this includes sponsoring events at national, state, district
and city level e.g. sports tournaments, rock shows Musical Nights, Dance
competitions, School and college annual festivals etc. Marketing
department at the Unit Office is headed by a Marketing Manager and has
three Marketing Executives.
Pepsi Co. is one of the biggest and spenders in India. It is also one of the
biggest global ad spenders. It has long a list of endorsers from pop star
Ricky martin to film stars Shahrukh Khan, Amitabh Bacchan etc. & Cricket
stars Sachin Tendulkar, V.V.S Laxman, Harbhajan Singh etc. Hindustan
Thompsom Associates, the biggest advertising agency of India has the
account of Pepsi Co. is known for its board cast as well as non board cast
advertising i.e. hoarding, banners, posters stickers, specialties, hangar,
dealer board, glow signboards, wall painting and news paper. The
expenses on these type of advertising are made at territory or unit level.
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THE COMPETITORS
The main competitor of Pepsi in cold drink industry is Coca- Cola and it
has the highest market shares in cola industry after Pepsi. Coca-cola is
also a multinational company and well-known name. So there is cutthroat
competition between the two.
THE CUSTOMER
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COMPANY OBJECTIVE
Responsibility and Trust form the foundation for healthy growth. It’s
about earning the confidence that other people place in us as individuals
and as a company. Our responsibility means we take personal and
corporate ownership for all we do, to be good stewards of the resources
entrusted to us. We build trust between ourselves and others by walking
the talk and being committed to succeeding together.
Guiding Principles
This is how we carry out our objective. We must always strive to
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means going the extra mile. Essentially, this is a spirit of growing rather
than taking.
Sell only products we can be proud of. The test of our standards is
that we must be able to personally endorse our products without
reservation and consume them ourselves. This principle extends to every
part of the business, from the purchasing of ingredients to the point where
our products reach the consumer’s hands.
Speak with truth and candor. We speak up, telling the whole picture,
not just what is convenient to achieving individual goals. In addition to
being clear, honest and accurate, we take responsibility to ensure our
communications are understood.
Balance short term and long term. We make decisions that hold
both short-term and long-term risks and benefits in balance over time.
Without this balance, we cannot achieve the goal of sustainable growth.
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SWOT ANALYSIS
STRENGTH
WEAKNESS
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Non-fulfillment of commitments on time, made to shopkeepers.
OPPURTUNITY
May tie up or liaison with major showrooms, computer centers & restaurant.
THREAT
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CHAPTER -2 PROJECT PROFILE
TRAINING OBJECTIVE
The main objective of the executive training is to find out the impact of
merchandising on sale. Which type of activities performs in merchandising
and how it is affect the sale and the buying decision of the customer.
It is known that the products of cold drink industry are impulse in nature.
Mostly the customer doesn’t make any pre decision to buy the cold drink.
So to attract the customer towards it when he goes to the shop, the visibility
is very important. The proper display of the items in the shop simply
attracts the customer and it is a very important part of merchandising.
Because of it the Pepsi spends a huge amount on it like the distribution of
many types of racks, Visi-coolers, Display schemes etc.
Increase in sales.
Knowledge of products to customer.
Attracting of potential customer.
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MERCHANDISING
First it is important that what the merchandising is,” The general mean of
merchandising is to innovate new ideas, which helps to increase the sale
indirectly. A merchandiser can be called a silent salesman because he do
not sale directly but the activities, which he performs, are play a very
important part for increasing the sale. That’s why the companies are
spending a lot of amount on merchandising these days.
The Pepsi is the market leader in Indian soft drink industry and its products
are impulse in nature. So the role of the merchandising is very important for
it.
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In the UK there are a number of organizations that supply merchandising
services to support retail outlets with general stock replenishment and
merchandising support in new stores, an example is Recruit Retail Services.
By doing this, retail stores have been able to substantially reduce the
number of employees needed to run the store.
While stocking shelves and building displays is often done when the product is
delivered, it is increasingly a separate activity from delivering the product. In
Grocery Stores, for example, almost all products delivered directly to the store
from a manufacturer or wholesaler will be stocked by the
manufacturer's/wholesaler's employee who is a full time merchandiser.
Product categories where this is common are Beverage (all types, alcoholic &
non-alcoholic), Packaged Baked Goods (Bread & Pastries), Magazines &
Books, and Health & Beauty products. For major food manufacturers in the
Beverage and Baked Goods industries, their Merchandisers are often the single
largest employee group within the company. For nationwide branded goods
manufacturers such as The Coca-Cola
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NEED FOR THE STUDY
It is known that the products of cold drink industry are impulse in nature.
Mostly the customer doesn’t make any pre decision to buy the cold drink.
So to attract the customer towards it when he goes to the shop, the visibility
is very important. The proper display of the items in the shop simply
attracts the customer and it is a very important part of merchandising.
Because of it the Pepsi spends a huge amount on it like the distribution of
many types of racks, Visi-coolers, Display schemes etc.
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LIMITATION
Lack of the interest of the respondent.
Time constraint
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CHAPTER -3
REASERCH METHODOLOGY
Type of Research
Descriptive Research: Descriptive research includes surveys and fact-
finding enquiries of different kinds. The major purpose of descriptive
research is description of the state of affairs as it exists at present.
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Data Source:
During project study the researcher had used both primary as well as
secondary data source. For primary data collection researcher visited
various retailers in Kota & for secondary data he went through Books,
Journals & Internet. The information collected is relevant, correct &
unbiased.
Research Design:
The researcher followed survey technique for collecting the data. Here, the
researcher carried out information from retailers, have carefully selected
the instrument & methods of surveying as the researcher have chosen
personal contact methods because of higher response rate & meaningful
responses this helped him to get the general feedback.
Research Instrument:
The research instrument used was EDS form. In which market information
detail of each outlet should be filled in EDS form. For this researcher have
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visited each & every outlet & check all the brands & packs of Pepsi are
available or not or which one is available in comparison with Coke &filled it
in EDS forms. In his research process the researcher have used closed
ended & open-ended questionnaire where respondents could answer in
their own manner. Through this the researcher was able to extract
information from the respondents about Pepsi’s products & the competitors.
Data collection
i. Primary
ii. Secondary
The primary data are those which are collected afresh and for the
first time, and thus happen to be original in character.
The secondary data are those which have been already collected by
someone else and which have already been passed through the statistical
process.
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FINDINGS
25%
Yes
No
75%
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AreyouAwarenessabout different
playersin thecoldrinkmarket ?
40%
Yes
60% No
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0% Do youhaveany particular preference
0% incoldrinks? If yesnamethem?
30%
Yes
No
70%
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BeforePepsi did youhaveany other
preference?If yes, reasonfor switching
to Pepsi ?
30%
Yes
No
70%
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Why do youthink that youlike
pepsi?
Price
5%
10% Brand
40%
Availability
45% Chilled
condition
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Are youattracted by display itemsof
pepsi store ?
40%
Yes
60%
No
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Doestheeasyvisibility of display items
&productmake yougo for impulse
buying?
25%
Yes
No
75%
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W i lchange
Will you l y o u p cryour
eh fa ei nfprir preference
gec ene c yoe oif ncu pr ree ap sifs eiPrice
Are the schemes given by company affecting the buying decision of customer?
?
of Pepsi increases?
50%
Yes
50%
No
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Arethe schemesgiven bycompany
also affectingthebuyingdecision of
customer?
40% Yes
No
60%
CONCLUSION
In reference to my topic of project “The impact of merchandising of
Pepsi coldrink on the consumer buying behavior” I come to know that
Pepsi is a well-known brand name and customers prefer it Because
of the impulse type of nature the merchandising plays an important
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role. The company timely provides the racks, posters, visi-coolers
and the other items which support to do proper merchandising. There
is a tag line is very popular in cold drink industry, “JO DIKHTA HAI
VO BIKTA HAI”.
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SUGGESTION
In reference to my research I came to find out that
merchandising helps in buying decision. Recommendations on the
basis of customer are:
2. Some Gifts should be given to the retailers on giving the large orders
so as to motivate
6. There should be a get together and General Meeting between all the
company employees and retailers every Quarter.
QUESTIONNAIRE
Address: ……………………………………
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1) Do you drink Cold Drinks?
Yes/No
Yes/No
a)TV Ads
b)Hoardings
d) Others
5) Before Pepsi did you have any other preference? If yes, reason for
switching to Pepsi.
a) Taste
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b) Price
c) Availability
d) Chilled Condition
Yes/No
8) What are the things which attracts you to buy Pepsi when you go to the
shop?”
a) Pure Racks
b) Pure visi-coolers
c) Huge posters
9) Does the easy visibility of Display Items and Product makes you go for
impulse buying ?
Yes/ No
a) Yes
b) No
c) Cannot Say
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11) Do u think that these promotional activities help in affecting consumer
buying behaviour?
Yes/No
12) Are the schemes given by company also affecting the buying
decision of customer?
Yes/No
……………………………….
……………………………….
…………………………………
BIBLIOGRAPHY
BOOKS:-
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Text Book of Marketing Management (philip kotler)
GUIDANCE:-
Primary Information collected from Company Guide.
WEBSITES:-
www.pesicoindia.com
www.marketingworld.com
www.google.com
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