BY:

GULAM CHISTY
09JU00200028
MBA-(2009-11)
IUJ, RANCHI
 A

THESIS REPORT

ON

PARTNER RELATIONSHIP MANAGEMENT

OF
PEPSICO INDIA’S

JHARKHAND

SUBMITTED TO:- SUBMITTED BY:-

Dr.Kaushik Dutta Gulam Chisty

IUJ, Ranchi 09JU00200028
MBA(2009-11)
 ACKNOWLEDGMENT

I’m grateful to Mr. Subroto Chakraborty (TDM) JHARKHAND , PepsiCo India

Limited, Jharkhand for making this research a wonderful and an enlightening
experience for me. Who really suggested me to work on this topic and helped me
to collect the relevant data’s and get the real gist of current scenario and also
helped me throughout the project and encouraged to take this project in future
course for my career.

I would like to express my sincere gratitude and thanks to Dr. Kaushik Dutta for
his constant support and cooperation at each step during the project and for
providing me an enlightened perspective and a very conducive environment.

I would also like to express my heartfelt thanks to all those persons who gave me
valuable guidance and support in every stage throughout the course of my entire
project work.

Gulam Chisty

TABLE OF CONTENTS
 INTRODUCTION

 HISTORY OF PEPSI

 SMV BEVERAGES Ltd.

 STRUCTURE OF ORGANIZATION
 PRODUCT
 PRODUCTION PROCESS
 CUSTOMER
 COMPETITOR
 ADVERTISEMENT

 PEPSI PROMOTION

 SWOT ANALYSIS

 OBJECTIVE OF PROJECT
 MARKET SURVEY

 DEALER SURVEY

 MARKET SHARE

 METHODOLOGY
 DATA ANALYSIS

 QUESTTIONAIRE

 FINDINGS

 CONCLUSION

 RECOMMENDATION

 BIBLIOGRAPHY

INTRODUCTION
PepsiCo entered India in 1989 and in the span of a little more than a decade it
became the country's largest selling soft drinks company. The Company has
invested heavily in India making it one of the largest multinational investors. The
group has built an expansive beverage, snack food and exports business and to
support the operations are the group's 43 bottling plants in India, of which 15 are
company owned and 28 are franchisee owned.
PepsiCo stays committed to providing its consumers with top quality beverages. Its
diverse portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up;
Mirinda; Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in
various flavors’; Aquafina packaged drinking water; Gatorade plus local brands
Lehar Evervess Soda, Dukes Lemonade and Mangola.
PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's
snack food company Frito-Lay is the leader in the branded potato chip market. It
manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips;
traditional namkeen snacks under the Kurkure and Lehar brands; and Quaker Oats.
PepsiCo is one of the largest MNC exporters in India and its export business
consist of three
categories - agri business, commodities and Pepsi system sales. PepsiCo has made
significant investments with the Punjab Agriculture University to develop a
comprehensive agro-technology program that has helped thousands of farmers
across India improve the yield of their farms and the quality of their agricultural
products. PepsiCo has leveraged its knowledge in contract farming to develop
seaweed cultivation in Tamil Nadu and has partnered with the Government of
Punjab to help farmers of the state through the utilization of developed technology
for citrus farming. As part of its sustainable development initiatives, PepsiCo India
has been a committed leader in the promotion of rain water harvesting, water
conservation recycling and the reduction of effluent discharge. PepsiCo has also
established zero waste centers and PET recycling supply chains and assisted
victims of natural disasters. PepsiCo stays dedicated in its endeavor to develop
community outreach programs by supporting rural water supply schemes,
administering medical camps in villages, providing computers to rural schools and
creating opportunities for women in rural areas through vocational training as an
alternate means of livelihood.
 HISTORY OF PEPSICO

 IN THE YEAR 1898, ONE OF CALEB’S FORMULATION, KNOWN AS

“BRAD’S DRINK”, A COMBINATION OF CARBONATED WATER,
SUGAR VANILLA, RARE OILS AND COLA NUTS IS RENAMED
“PEPSI COLA” ON AUGUST 28, 1898. PEPSI COLA RECEIVES ITS
FIRST LOGO.

 IN 1902, BR ADHAM APPLIES FOR A TRADEMARK WITH THE U.S.

PATENT OFFICE WASHINGTON D.C AND FORMS THE FIRST PEPSI
COLA COMPANY

 IN 1905, PEPSI COLA’S FIRST BOTTLING FRANCHISES ARE

ESTABLISHED IN CHARLOTTE AND DURHAM, COMPETITIVE
COLAS.

 IN 1941, THE NEW YORK STOCK EXCHANGE TRADES PEPSI’S

STOCK FOR THE FIRST TIME. IN SUPPORT OF THE WAR EFFORT,
PEPSI BOTTLE CROWN COLOUR CHANGE TO RED WHITE AND
BLUE.

 IN 1960, YOUNG ADULTS BECOME THE TARGET CONSUMERS AND

PEPSI’S ADVERTISING KEEPS PACE WITH “NOW IT’S PEPSI, FOR
THOSE WHO THINK YOUNG”.

 IN 1970, PEPSI INTRODUCES THE INDUSTRY’S FIRST TWO (2)-

LITERS BOTTLES. PEPSI IS ALSO THE FIRST COMPANY TO
RESPOND TO CONSUMER PREFERENCE WITH LIGHT – WEIGHT,
REOYCLABLE, PLASTIC BOTTLES.

 IN 1984, PEPSI ADVERTISING TAKES A DRAMATICS TURN AS PEPSI

BECOMES “THE CHOICE OF A NEW GENERATION.

 IN 1991,PEPSI INTRODUCES THE FIRST BEVERAGES BOTTLES

CONTAINING RECYCLED POLYETHYLENETEREPHY THALATE (OR
PET) INTO THE MARKET PLACES. THE DEVELOPMENT MARKS THE
 FIRST TIME RECYCLED PLASTIC IS USED IN DIRECT CONTACT
WITH FOOD IN PACKAGING.

 IN 1992, PEPSI COLA AND LIPTON TEA PARTNERSHIP IS FORMED.

PEPSI WILL DISTRIBUT SINGLE SERVE LIPTON ORIGINAL AND
LIPTON BRISK PRODUCTS.

 IN 1994, PEPSI -FOOD INTERNATIONAL AND PEPSI -COLA

INTERNATIONAL MERGE, CREATING THE PEPSICO FOODS AND
BEVERAGE COMPANY.

 IN 1997, PEPSICO ANNOUNCES THAT IT WILL SPIN OFF ITS

RESTAURANTD DIVISION TO FORM TRICON GLOBAL
RESTAURANT, INC. INCLUDING PIZZAHUT, TACO BELL AND KFC.
IT WILL BE THE LARGEST RESTAURENT COMPANY IN THE
WORLD IN UNITS AND SECOND LARGEST IN SALES.

 IN 1998, PEPSI CELEBRATES ITS 100 th ANNIVERSARY.

 IN 2006, PEPSICO ACQUIRED IZZE BEVERAGE COMPANYN NAKED

JUICE AND STACYS PITA CHIP COMPANY IN THE US, STAR FOOD
IN POLAND, AND BLUEBIRD FOOD IN NEW ZELAND. IT HAS
EXPANDED ITS PRESENCE IN THE NON-CARBONATED DRINKS AS
WELL AS SNACKS.

 IN 2006, THE COMPANYS VOLUME GREW BY 5.5%, COMPARED

WITH 2005 IN 2007, THE COMPANY PLANS TO EXPAND ITS
MARKET SHARE THROUGH FURTHER ACQUISITION AND JOINT
VENTURES.
 SMV BEVERAGES LTD.

S.M.V. Beverage Pvt. Ltd, Adityapur, (Jamshedpur) a medium sector enterprise,

located amidst beautiful surroundings, on the TATA Kandra road in the Adityapur
Industrial Area, and producing PEPSI range of bottled soft drinks, viz. Pepsi, 7 Up,
Mirinda, Teem, Mirinda Lemon, Mirinda Apple and Lehar Slice and had become a
household word in the Jharkhand State symbolizing achievement and advancement
over the years.
Steel City Beverages was established in 1967 and production commenced in March
1969. At the very outset the company installed state the art machines and
technology, for the production and bottling of soft drinks. The bottling plat with a
capacity of produce bottle 220 per minute is totally automatic and also had a
modern state of the art inter mix machine for binging forth the right blend of
flavors. The company continuous to adopt and innovate technology in keeping
with its policy of constant quality improvements. With the advent Pepsi Food
Limited for the production and sales of Pepsi range of soft drinks for Jharkhand.

The company symbolizes self reliant in technology and ranked as the Best bottling
company in the country in terms of Quality, Efficiency, Sale, Productivity and
KRD. Till 1998, it was under the guidance of its Chairperson, Smt. Kusum Kamani
and the able stewardship of its Managing Director, Shri. Nakul Kamani, the Co.
has consistently bagged on numerous occasions, awards for Quality Assurance and
Productivity, in 1993 it bagged top honors for being the best Quality conscious Plat
amongst all Pepsi Bottling companies in India.
In March 1999, Steel City Beverages Ltd. was taken over by Mr. S. K. Jaipuria
from Mr. N.D. Kamani, along with Rushabh Marketing Ltd., a marketing unit. Mr.
S.K. Jaipuria started running this plant very successfully. He was very much
enthusiastic to increase the production and sale and to capture the whole market of
Jharkhand. He established another plant in the name of SMV Beverages (Jsr) and
increased the production from this new plant. The capacity of this new plant is 600
bottles per minute. Simultaneously, another marketing, company came up in the
name of Hyderabad Marketing Company, Which is catering the need of whole of
Jharkhand state.

The Company’s highly sophisticated plant and quality control laboratory along
with the dedication and enterprise of its employees is more than evenly matched by
the management’s sense of understanding and compassion that has insured the
company’s progress with every passing day.
The company has a sale of more than 24 million bottles. It has maintained and
nurtured a vast network of distribution for its product in Jharkhand and currently
holds way over more than 50% of the states consumer soft drinks market with an
estimated growth annual turnover of over Rs. 10 corers. The company is
currently in pursuit of the coveted ISO9002, which it is confident of achieving
and would hence become the first food product factory in India to do so.
 STRUCTURE OF THE ORGANIZATION

For the every concern a structure is necessary on which the complete organization
should be founded. To have a structure is not a choice of the organizer. The choice
is only of the form and pattern of the organization. Planned organizational structure
may be proved logical clear – cut and streamlined in order to meet the present
requirements. Otherwise it will merely be a makeshift arrangement and the
management in rendered difficult and ineffective because organizational structure
affects everyone in the organization. A good organizational structure facilitates
efficient management and the operation of enterprise and it encourages growth. It
helps organization to reach it’s predetermined goal.
In order to make the organizational structure more effectible one structure that can
meet the demand of various factors namely environment, technology, size and
people. SMV Beverages (Jsr) has duly considered these factors to build and
efficient organization structure. As it is a medium scale enterprise and fully
automatic, the manpower requirement is less. Hence, like any contemporary
company, it has adopted a flat structure.

Following are the major features of the organizational structure of SMV Beverages
Ltd.

 Clear lines of authority.

 Adequate delegation of authority.
 Minimum Managerial skill level.
 Unity of Directors.
 Applications of ultimate responsibility.
 Span of control.
 Simplicity.
 Flexibility.
 Due consideration for top groups.

SMV Beverages (Jsr) has a management board headed by its’ unit manger &
Director Mr. P.S. Kumar. He is responsible for overall policies regarding
managerial decisions and all the executive functions. He looks after all the
functional departments like productions, Sales, account, personnel & purchase.
Every department is headed by their respective managers who sends reports to the
unit manager and are responsible to him in every sense of working.
The Plant Manager is the head of the production department. He looks after
production i.e. bottling process, inspection, and storage of new materials and
maintenance of the plant as a whole. He also Heads the quality control department
through quality control manager.
The controller of accounts heads the accounts department; under him there is a
chief accountant. The purchase officer is in charge of all purchase activity of
concern. PAC (Product availability Co-ordinator) is in charge of shipping
department, coolers and PMX.
Personnel department is headed by the personnel manager and looks after the
function of administration, industrial relation, legal jobs, security welfare etc.

The HMC Hyderabad Marketing Company In these two units, the Head of Sale
and Marketing is in charge of all the marketing activities i.e. sales promotion,
publicity, advertisement, market survey, and shipping. Though his main function is
to have a control over the outlets distribution, Sales Manager is assisted by sales
executive and sale supervisor.
 PRODUCT

PRODUCT IN JAMSHEDPUR
 PEPSI
 PEPSI DIET
 MIRINDA
 7 UP
 MOUNTAIN DEW
 SLICE
 AQUAFINA
 TROPICANA TWISTER
 LEHAR SODA
 NIMBOOZ
 PRODUCTION PROCESS

The bottling process at STEEL CITY BEVERAGES is automatic. The various

units of this plant are:

WATER TREATMENT UNIT

Water in the STEEL CITY BEVERAGES LTD. Come from Sitarampur dam
and is stored in a reservoir. Before ensuring production, this raw water is treated in
the water treatment plant.The process involved is known as coagulation process.
Main chemicals, which are used, are ferrous Sulphate (FeSo4), calcium hydroxide
(CaOH) and chlorine (Cl). Initially water is treated with all these chemicals in the
treatment tank and becomes turbid. All impurities get settled at the base and
remove the turbidity. Next it is sent to a sand filter to remove the turbidity. Then it
is sent to the CARBON TANK where all the microorganism and chlorine is
removed the water so obtained is completely free from any king of impurity and is
ready to be used in further processing the maximum alkalinity is maintained until it
is as much as 50 p.p.m.

ROLL CONVEYOR
This automatic operation machine takes the dirty empty bottles for washing. A
person is required to put the empty bottles on the roller conveyor.

CLEANING (THE BOTTLES) UNIT

Used bottles returning from the market are stealthy. It is completely an outer
process, which takes place within a machine. The machine has three
compartments. Bottles for washing placed on conveyor come inside the machine
and get successive treatment. Bottles are treated with 4% caustic soda in the frost
compartment at the temperature, 100-115F. Next these are conveyed to the second
compartment where bottles are again treated with 2% caustic soda at the
temperature 120F. In the third compartment bottles are treated with sort ware.
Time duration in the each compartment is 10 minutes.

CONVEYOR CHAIN
These are for the movement of sterilized empty, filled and crowned bottles.
LIGHT SCREEN
To check if any dirty part is unwashed in the sterilized bottles, which are coming
through conveyor chain? This checking is again crowning.

SYRUP ROOM
Syrup room is situated on the first floor. Here syrup is prepared from filtered
water, sugar and the concentrate. The room is well equipped with several tanks and
filter press. The first one is heating tank is which syrup is actually prepared.
Calculated amount of sugar along with concentrate and water is heated up to 850C.
Thus a saturated solution is prepared. Next it is sent through a machine called filter
press.

FILLER MACHINE
Washed empty bottles enter into this through conveyor chain and then they are
filled with exact quantity of beverages.

CROWNER
The filled bottles are crowned with metallic caps to protect the purity of content.
Then the bottles are given the batch no., year, etc. with the help of laser machine.
Thus the whole process from washing to crowning is automatic. The filled bottles
are lifted manually from conveyor and placed in crates. The bottling of beverages
is carried out at a rate of 240 bottles/min. The new bottling unit has been
established in order to pace the bottling process in the month of February. After
establishing the now production unit the rate per minute raised to 600. Before it
was 440 bottles per minute.
DISTRIBUTION CHANNEL OF SMV BEVERAGES LTD.
Channel of distribution followed by the SMV Beverages Pvt. Ltd.
The channel of distribution is one of the essential activities, which is the
responsibility of the sales department. The best alternative strategy is followed by
the sales department of SMV Beverages private limited to distribute the processed
soft drink so that product is available at right time and at right price. The company
uses the following marketing distribution channel: -

Manufacturing
Unit

Distributor or
Whole seller

Retailer or
Outlet

End Users

The product after processing is firstly supplied to the distributor or wholesalers

from the plant or manufacturing unit. The whole area in around Ranchi is divided
into the several zones and routes. Thus the retailer cannot take the delivery directly
from the manufacturing unit. They have to take it from their respective distributor
in the particular zone of route. The distributors are selected on the basis of
assurance given by them regarding the minimum sales, which they have targeted
annually. Depending upon the market each distributor in its initial stage has
deposited some security money this amount varies between the distributor-to-
distributor and area-to-area. There is not any fixed criterion for retailer or outlet
but some time its selection is dome on the basis of sales of caret per day. There is
no direct relationship between the retailer and the company.
There are lots many of exclusive outlet which is given more preference in order to
meet product available. Most of the retailer are beetle shop, restaurant, grocery
shop, STD booth, Medicine shops etc. who are having the stall for the sales soft
drinks. These retailers have to give the assurance to the concerning distributor for
better sales and the time of thanking delivery. They have deposited the security for
the empty carets with specified retailer purchasing price. The distributors at first
have to seek the permission of the sales department for the number of cases of soft
drinks required by them. After getting the proper authority from the sales
department the distributor then sent their delivery through route vehicles to the
respective outlets that so ever have paid the requisite sum of money either by cash
or draft and deliver the filled carats and get back the empty carats.
Decisions with respect to distribution channel focus on making the product
available in adequate quantities at places where customers are normally
expected to shop for them to satisfy their needs. Depending on the nature of the
 product, marketing management decides to put into place an exclusive,
selective or intensive network of distribution, while selecting the appropriate
dealers or wholesalers.
 Direct Distribution:
o Delivery of post mix cylinders & handling of key accounts: the key
accounts are different wholesalers, restaurants and hotels like Pizza
Hut, KFC, Metro which serve as a place for key sale. These are
known as national key accounts and are very important in term of
competition.
o Export Parties
 Indirect Distribution:
o Through base market distributors
o Through outstation distribution

Before delivering the product some certain guiding principles are followed for the
assessment of distributor’s capacity:
o Applicant must have 20 to 25 vehicles (depending on the area)
o Applicant must have 20,000 cases of empty bottles
o Applicant must deposit Rs. 1,00,000 as a security

This is usually done through taking over key revenue areas. If the distributor does
not achieve its sales target, the distribution is taken back and an addition of new
distributor is done. Therefore Pepsi’s supply is low supply uncertainty. Some of its
supply source capabilities are:
 Less breakdowns
 High quality
 Flexible supply capacity
 Mature production process
 CUSTOMER

In Tier 1, 2 and 3 cities in India, 29% of Indian consumers report consuming

carbonated beverages/soft drinks during a fixed time of the day suggesting
consumption has become a routine part of their day, with most consumption taking
place during the 'afternoon to evening' time period. Not surprisingly, consumption
is highest in Tier I cities such as Mumbai, Delhi, Kolkata, Chennai, Hyderabad and
Bangalore. The level of consumption is seen to increase with rising household
incomes (with the exception of the highest income level) while decreasing with
age.
The Indian soft drinks market is not under any regulation. Prevention of Food
adulteration act 1954 does not include soft drinks. None of the BIS standards that
existed before August 2003 had any guidelines or set criteria for the residue levels
of pesticides in the soft drinks. But different lie agencies have set standards for the
residue levels of pesticides. The European Economic Community (EEC) sets the
maximum admissible concentration of individual pesticides and related products in
drinking water at 0.1 parts per billion to ensure that the toxicity is not dangerous to
human beings. For a few pesticides like aldrin, dieldin and heptachlor epoxide the
admissible limit is even more stringent, i.e., 0.03 parts per billion.
He is the person who is selling the same type of product in the market.The
marketing concept states that to be successful, a company must provide greater
customer value and satisfaction than its competitors do.
 COMPETITOR

Pepsi has a tough competition with Coca Cola while it faces a little competition
with the local producers like RC Cola, Shandi Cola etc. The local producers hardly
affect the sales of Pepsi in the market.
There are different types of competitor in the market. Some of them in which our
product lies are discussed below:

Close Vs Distant Competitor:

Pepsi and Coke are close competitors. It means that both have direct competition in
the market, their products are close substitutes for one another. Both the products
can influence the market share of one another through effective strategies made to
cope up with their competitors.
Pepsi cola and Nestle juice are distant competitors of one another. It means that
their products satisfy the same want but they are in indirect competition with one
another.

Strong Vs Weak:
Coca Cola and Pepsi are strong competitors. Pepsi is the market leader and Coca
Cola is its competitor. The Pepsi makes defense strategies so that it can maintain
its position in the market. While Coca Cola is a challenger and it makes attack
strategies so that it can become the market leader.
Pepsi and Shandi Cola are weak competitors. Pepsi is the market leader and Shandi
Cola is the follower. Pepsi is not in direct competition with the Shandi Cola. It
means that Shandi Cola has little effect on the sales of Pepsi.
Pepsi Cola is situated in an industry that is dominated by two competitors, Coca-
Cola and of course themselves. Although Pepsi and Coke basically go after all
consumers who purchase soft drink beverages Coca-Cola targets its products at the
head of household.
This is evident in many of the ad campaigns such as “Always Coca - Cola” which
refers to the traditional beverage heritige of its product. They also reinforce this in
the name “Coca-Cola Classic” which is inferring to the older consumer. This name
reflects an image of value, reliabilty, and old time values. Pepsi Cola throughout its
100 years of existence has developed many strengths. One of the strengths that has
developed Pepsi into such a large corporation is a strong franchise system.
They have also made wise investments in snack food companies like Frito Lay,
which at present time is the largest snack company in the world. Probably high on
the list of strengths is Pepsi’s beverage line up. Pepsi has four soft drinks in the top
ten beverages in the world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and
Caffeine Free Diet Pepsi. Pepsi also has the #1 tea in the United States, Lipton Tea.
Some other strong brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and
a license agreement with Ocean Spray juices. Pepsi Cola like any company has
weaknesses. Ironically, the one strength that has been credited for most of its
success in the past has now become a weakness for Pepsi. This former strength is
the franchise system. The franchise system in Pepsi Corporate view has become a
liability. Pepsi in today’s market must be able to act as one instead of several
separate units. The franchise system has become a hurdle to Pepsi because many of
these franchises have become very strong and will not be dictated by PepsiCo on
how to handle their operations. Some of these franchises are unwilling to support
certain Pepsi products and at times produce their own private label products that
are in direct competition with Pepsi products. Secondly the franchisees are not
willing to make capital expenditures to keep up with Coca-Cola who is a firm
believer in reinvesting into their infrastructure (Coca Cola at present time does not
operate a franchise bottling system). Another weakness that Pepsi is inferior is in
the fountain soft drink division. This has always been a problem for Pepsi because
of their ownership in fast food restaurants. Coca Cola has for years been in the top
locations for fountain beverages because they simply tell the account Pepsi is their
competition because of their ownership in Taco Bell, Pizza Hut, KFC, and many
others. As mentioned earlier Pepsi has tried to eleiviate this problem by spinning
off their interest in fast food restaurants but at present time are still guilty by
association to many of the large fountain accounts. The franchise system has also
effected fountain sales due to the fact franchisees are not willing to by expensive
fountain equipment to placed in accounts mainly because the profit margin is so
low and could take years to recoup their investment. Pepsi also has a weakness in
the international beverage market. Unfortunately for Pepsi they were a “Johnny
Come Lately” into this arena. Pepsi has tried to enter this market by trying to do in
three years what took Coke 50 years to do. This area will take years for Pepsi to
mature simply due to Coke’s dominance in the international market and the strong
ties that Coke has developed with these markets and their governments. Pepsi
customers buy nearly five billion gallons of soft drinks per year. Pepsi customers
buy their products because of taste, price, packaging, promotional factors and of a
wide variety of brands. Pepsi customers also buy their products due to the high
accessibility of Pepsi brands. Pepsi products are distributed to many outlets. For
example, supermarkets where Pepsi buys large shelf area and display areas so the
customer can find them easier, Convenience stores, gas stations, delis, restaurants,
movie theaters and almost and other conceivable spot. Pepsi has a competitive
advantage over Coke because of the image it portrays. Pepsi promotes itself as the
choice of the “New Generation”. Pepsi gets this advantage by implementing such
large marketing projects like “Project Globe”.
 ADVERTISING

Advertising is any paid form of non-personal mass communication through

various media to present and promote product, services and ideas etc. by an
identified sponsor.

PepsiCo has advertised its products through many different ways and media.
Through TV we have seen different advertisement of its products such as Pepsi
or Dew. PepsiCo also advertise its products by targeting those favourable
television programs, like sports, series and also PepsiCo uses some events like
‘Pepsify Karogey?” to promote its products.

Through newspapers like Jung and Dawn, PepsiCo has advertised a wide range
of products its offers to its customers. And also through Posters a message has
been sent to lot of people to be aware of the products which PepsiCo offers.

PEPSI PROMOTION
Promotion is a key element of marketing program and is concerned with
effectively and efficiently communicating the decisions of marketing strategy,
to favourably influence target customer’s perceptions to facilitate exchange
between the marketer and the customer that may satisfy the objective of both
customer and the company.
A Company’s promotional efforts are the only controllable means to create
awareness among publics about itself, the products and services it offers, their
features and influence their attitudes favourably.

SWOT ANALYSIS
 In order to get clear understanding of the position of Diet Pepsi in the various
markets we did a SWOT analysis from the data obtained from the survey and
the various retailer interviews

STRENGTHS:

 PACKAGING AND PRICING – Pepsi has the advantage of having

provided the same kind of health based carbonated drink the Slim Diet Pepsi
Can which in comparison to the Diet coke is a much more attractive offering
because it is slim sleek equally healthy and way cheaper.

 DISTRIBUTION – As already mentioned Pepsi India has one strongest and

most efficient sales and distribution networks not only in India but also
throughout the globe. Also in the particular market where the survey was
done the sales people have developed a network which is powerful enough
to make or break sales for Pepsi in any given quarter

 P R – One of the most important factors of success of PepsiCo in India is the

relationship the company and its constituents have with the channel partners.
The Company officials and even the employees of FOBO have very good
rapport and relations with the Channel partners. Also the recently introduced
retailer benefit schemes such as the gold card membership and other free
gifts and offerings not only motivate the retailers but also helped us create
visibility for the Slim Diet Can range in a profound. The experience of
working with people who welcome us with a smile rather than a frown will
always be remembered.

 NON-CARBONATED – This is one those strengths of Pepsi that often

goes unnoticed but plays a very important role in success of Pepsi in India
 and even around the globe. The non-carbonated segment is dominated by
Pepsi, Tropicana is the market leader in fruit juices. In the mineral water
segment, Aquafina clearly outsells Kinley without ay fuss.

 Bottling – Pepsi has the advantage of being in partnership with the largest
bottler in India, the R K Jaipuria Group. RKJ Group controls almost 65% of
the bottling operations of PepsiCo in India. At times this is also seen as a
weakness of Pepsi in India attributing to the fact that the Jaipuria group is so
strong that in certain circumstances it can even defy the parent Company.

 Pepsi – Pepsi Cola is the biggest strength of Pepsi as it is the market leader
in the Cola segment and clearly outsells both the products the Coca Cola
Company namely Coke and Thums Up. Pepsi controls almost 60% market
share in the Cola segment.

WEAKNESS:

 SECOND MOVER DISADVANTAGE - Diet Pepsi Cola does have the

first mover advantage which Diet Coke has and this may prove to be a major
shortcoming also in the Agra Market no Extensive efforts have been made to
popularize it.

 Brand – On a comparative scale Diet Coke proves to have a better brand

image in customers mind than. This compels to incur extra expenditure in
Advertising, Promotions and Sponsorship.

 MCDONALDS – This is one of the most important reason why Diet Coke
outsells Pepsi worldwide and specially in the United States. Similarly, in
 India Diet Pepsi may suffers in sales because of institutional sales. Now
Pepsi is trying very to bridge this gap in the near future.

 EXPENDITURE – Right from the very beginning Pepsi has hired the
biggest and the most expensive stars in the country as its brand ambassadors
and has spend heavily on advertising which has affected its balance sheet.

 Vizicoolers – At presently this is one the biggest problems faced by Pepsi.

Pepsi is not able to get refrigerators in India so they have to import it other
namely Sri Lanka, Mauritius etc. Because of this, retailers are facing lot of
problems in Vizicoolers. They are not able to get new refrigerators,
replacements for old ones, even the repair work takes lot of time because at
times even the spares are not available on time.

OPPORTUNITIES:

 Lowest Per Capita Consumption – Even after almost decades of presence in

the market, there are growth opportunities for Diet Pepsi in India as here the
per capita consumption of carbonated beverages is one of the lowest in the
world.

 Health Based: apart from its Juice Based drinks portfolio Pepsi can Use the
Slim Diet can to the maximum by promoting it as a health drink at Cheaper
prices.
THREATS:

 NGO’s – NGO’s like CSE can seriously hamper the sales and prospects of
companies operating in this industry. This happened during the pesticide
controversy involving both coke and Pepsi.

 HEALTH – Growing health awareness among people and some of ill

effects of carbonated beverages have pursued many people to switch over to
non-carbonated beverages that can seriously hamper the long-term prospects
of the entire Industry and not Pepsi.

 ENVIRONMENT – Environmental concerns are often raised because of the

massive amount of water extracted by the bottling plants resulting in the
drop in groundwater level which affects the local population adversely.

 In India PepsiCo adopted the strategy of growth through intensification. In

the intensification strategy, it used market penetration by developing one of
the strongest sales and distribution network in the world and utilizing it to
the fullest.

 Pepsi did market development by making the aware of the best products
available at their disposal, by using the best technology to produce the
products, by properly communicating with the customer, and making the
customer realize that he is important. Pepsi also explored new markets by
venturing new segments like fruit based beverages, sports drinks, snack food
division.

 Pepsi expanded and established itself in the market place by constantly

developing new products to the customers, like Tropicana, Gatorade, and
Pepsi Blue. In this way, Pepsi was also able to effectively counter the threats
posed by substitutes and new entrant
 OBJECTIVE OF THE STUDY

The main Objective of the study aims at exploring the strategies followed by
PepsiCo India to manage its various partners both internal as well as external since
it started its operations in India. This study will also explore what changes PepsiCo
India is bringing in order to increase its visibility and market presence to tackle the
ever increasing hold of Coca Cola on the Indian beverage market.
 MARKET SURVEY

One of the most effective tools of the market research technique is Market survey.
We can know the actual facts and figures regarding. The product through market
survey.

Any business organisation has to sell its product in the market. The largest share of
market a company has the better its profit margin will be. To increase the market
share the company should come out with a product which best satisfies the
customer need.

To find out the customer need and market demand the company should survey the
market and the process is knows as market survey.

Based on this survey the company goes for following function.

1. Market Development Function.
2. Product Development Function.

The Report on over all Marketing activities in Ranchi is based on two different
types of survey:-

 Retailer Survey.

The retailer survey as the word indicates is the survey of every retailers of soft
drink in the area. For my practical purpose the dealer only includes the authorized
dealer appointed by the company, but it also includes the retailer- big or small
grocery shops, stationary, restaurant, betel shop etc. beside these, the various
exclusive stalls and sales of pantry cars also included in it. In a nutshell, by dealer
we mean, those who are dealing in soft drink in some way or the other, in large our
study, directly or indirectly.

Thus our study includes all such dealers. EDS includes various aspects:

 Route-wise no. of dealers

 Crate strength
 Per day sales
 Chilling aid
  Advertisement
 Nature of outlets
 Scheme and pay-offs etc.

While conducting the survey of dealers, a format was provided to me, which ask to
fill up by the dealer so that it meets the requirements of the organization. The
dealer survey as mentioned earlier includes a variety of dealers.
 DEALER SURVEY

Since Retailers/Dealers are supposed to be very close to the consumer. They can
know the choice and taste of a consumer very well.The following important
information we come to know by Dealer/ Retailer Survey.

 Market position of Pepsi

 Distribution effectiveness.

 Price effectiveness.

 Service of chilling equipments

 Schemes Availability.

In Ranchi 3 me have survey all parts of this small town

In Ranchi 3 area Karamtoli to Booty More and on the national highway Booty
more to Chutupalu.

We have surveyed about 120 outlets/Shops in jamshedpur.

1.MARKET POSITION OF PEPSI.

From our survey we find that Pepsi faces a tough competition from its rival
Company Coca-Cola. Thumps-Up a product of the Coca-Cola Company gives a
stiff competition to Pepsi. We find that Thumps-up gives a tough competition to
Pepsi Cola.
Sprite gives a tough competition to Mountain Dew. But Dew is also is saleable
than sprite.
Mirinda and slice is also more Saleable than Maaza. Because of the better taste
slice is more demanded in the market.
The Customers of slice includes the females and middle aged persons; who just
want to taste the Mango Juice.
Mirinda is also more demanded by the female consumers.
 On the basis of the survey we come to know that it is due to the sweetness of
Pepsi which makes its market power a weaker one. On the other hand Thumps-up
hardness gives it more value at the market.
2. DISTRIBUTION EFFECTIVENESS :-

We find that the summer season is the Peak season for the Cold Drinks. That's
why a special case should be taken for the distribution of Pepsi products. These
includes that the supply should be regular.
Irregular supply effects the marketing of Pepsi. The Retailers says that it is upto
then for the selling of a product. Whatever product is available to them they will
sell that item. if Coca cola- supply is regular they can sell the Cola-Cola product
if the Pepsi supply is not regular and good. That's why the Retailer wants the
regular supply and best service from the company during the peak reason.
"From our survey we found that the supply of Pepsi products is regular. Although
in some areas like. Imlichowk dandlibasti saldis basti the supply is not regular
because of less number of vehicals. The Retailers, however, manages to get Pepsi
from other other side dealer.
We find that during the peak season sometimes supply problem occurs. But
according to my thinking the main reason of irregular supply is shortage of pepsi
products in distributor godown. However, Retailers also know that the supply
sometimes hampers during the peak season.

PRICE EFFECTIVENESS :-
From our survey with regard to price we come to know that the increase in price
of 200ml (Pepsi) does effect the selling of Pepsi. However this increase in price
does not effect too much to the selling of Pepsi Products. However, the price is
same as that of the Coca-Cola products. Hence we find that the increase in price
affects the marketing of both the products i.e. Pepsi and Coca-Cola.

4.SERVICE OF CHILLING EQUIPMENT OF PEPSI :-

The service of Chilling equipment of Pepsi is not satisfactory to all the
users/Retailers/Shopkeeper.The mechanic of the company is not regular at the
place where required. Retailer/Dealers/Shopkeepers complains about the less
cooling of Pepsi freeze. But they satisfied from the cooling equipments of Pepsi.
5.SCHEME AVAILABILITY :-

We find that the dealers guts the schemes regularly. These Schemes lead to the
more selling of Pepsi products. The dealers Say that schemes provided by the
Company, encourages them to sell the Pepsi products more and more, however,
sometimes. The retailers cannot know about the schemes because the schemes are
of very short period.

That's why they want to know about. The exact information and timing of
Schemes. So that they can avail these scheme.
 OVERALL MARKET SHARE

1.COCA-COLA 43.9%
2. PEPSI COLA 30.9%
3. CADBURY SCHWEPPES 14.5%

BREAKDOWN OF MARKET SHARE

1. COCA-COLA CLASSIC 20.6%

2. PEPSI COLA 14.5%
3. DIET COKE 8.5%
4. MOUNTAIN DEW 6.3%
5. SPRITE 6.2%
6. DIET PEPSI 5.9%
7. 7-UP 2.3%
8. CAFFIENE FREE DIET COKE 1.8%
9. CAFFIENE FREE DIET PEPSI 1.0%
10. DR. PEPPER 0.6%

FOUNTAIN SALES (FOUNTAIN SALES ARE CREDITED FOR 27% OF

SODA SALES)

1. COCA-COLA 65%
2. PEPSI COLA 23%.

MARKET SHARE OF VISI COOLER

Chilling equipment is an important factor for selling soft & cold drinks.Without
freeze & VISI cooler the sale of soft drinks is not possible. Every dealer has an
chilling equipment. In some cases company also provide chilling equipment.
Company whatever provide chilling equipment it is totally different from general
freeze. In this case the freeze outsider has advertise the product e.g Pepsi Dew 7up
slice etc. for e.g in a market one of the dealer has good sales of soft drinks. He has
4ct , 3ct , 4ct various type or flavour soft drinks. His visi cooler has not sufficient
space to chilled the all product at a time. He tell the problem to the company and
request that to provide a visi cooler. Companie’s employee come to the dealer and
analyze that it is necessary to provide a visi cooler or not. Then company provides
the visi cooler to the dealer.

Market share of visi cooler

SL.NO Company Est Mark. Share
1 Pepsi 54.50%
2 CocaCola 45.50%

This is one of the most important supports for the dealers which help them to keep
the product chilled and freash.

Market Share Of Visi cooler

COCA COLA
46%

PEPSI
55%

METHODOLOGY
Data was collected as primary. Primary data is the data taken from the source itself
and is first hand knowledge of the same.

We were given the task of going to the respective outlets and collecting the data on
the per day sales, cold stock, warm stock and the refrigerator brand of the retailer.

Also any complaints and comments of the retailer was also to be recorded.

The steps involved were formulating a questionnaire, finding out the number of
retailers of Pepsi and coca cola in a given area then going to the outlet and
performing an each dealer survey of the area.

DATA COLLECTED
 I have tried to visit each and every outlet and personally interviewed them. In order
to know the market share of Pepsi. I have conducted a survey at Hinoo distributor
point and its surrounding areas.

The numbers of outlets, which are covered by me in different area of Hinoo

distributor point , are as follows:-

S. No. Location (Ranchi) No. of Outlets

01 Dhurwa 11
02 Hatia 2
03 Sector 2 9
04 J.P.market 4
05 Hinoo 7
06 Doranda 5
07 Niwaranpur 3
08 Kadru 5
09 Tipudana 4
10 N.O.P 5

S.no Shop name Owner name Address Brand Other Sale Fridge
 per day
sold brand in carat brand
320
1 Gopal store Gopal Kadru pepsi coke 3 to 4 litres
Khushi 220
2 General. Store Ranjan Kumar Kadru pepsi coke 3 liters’
Keshri cig.
3 Shop Ashok Pandey Kadru pepsi coke 2 no
220
4 Lalkar Video Manoj Kumar Kadru pepsi coke 2box liters’
220
5 Kadru Sweets Jeewan Bose Kadru pepsi coke 3 liters’
Swadist
Mistanna 340
6 Bhandar Bimal Ghosh Kadru pepsi no 5 to 6 liters’
Mukesh
7 Reliance Fresh Ambani Kadru pepsi coke 6 boxes no
8 Priti Shringar S.K.Goswami Kadru pepsi no 1 no
340
9 Gujrat Sweets Rajesh Kumar Niwaranpur pepsi coke 2 liters’
220
10 Matchless Md.Akhtar Niwaranpur pepsi no 2 to 3 liters’
Hatia General
11 Store Dharampal Hatia pepsi no 1 no
Umar General
12 Store Ajay kumar Hatia pepsi coke 1 no
Jai Matadi
13 Store Gautam Doranda pepsi no 1 no
Munna
14 General Store Murad Doranda pepsi coke 5 no
Delhi General 220
15 Store Jasbeer Doranda pepsi coke 3 to 4 litres
Purva General
16 Store Satyendra Doranda pepsi coke 1 no
Kwality 220
17 sweets Pradeep Hinoo pepsi coke 2 to 3 litres
18 Shankar store Deepak Hinoo pepsi coke 3 no
 Chedi pan 220
19 dukan Raj Bahadur Hinoo pepsi coke 2 to 3 litres

Dhurwa 340
20 sweets Baba Saheb Dhurwa pepsi coke 6 to 7 litres
Patel General
21 Store Rajesh Kumar Hinoo pepsi coke 2 no
Baba Peda
22 Dukan Shankar Dhurwa pepsi coke 2 to 3 no

23 Ray Phonex Raj Kumar Dhurwa pepsi no 2 no

24 Ranjan Std Ranjan Dhurwa pepsi coke 3 no
25 Sreekant Store Sreekant Dhurwa pepsi coke 2 no
Ramesh
26 General Store Ramesh Dhurwa pepsi coke 3 no
Kumar
27 General Store Ashok kumar Dhurwa pepsi coke 3 to 4 no
220
28 Balaji store shila singh Hinoo pepsi no 4 litres
220
29 New pariwar rajeev gupta Hinoo pepsi coke 7 to 5 litres

30 Reliance fresh Hinoo pepsi coke 9 boxes no

 DATA ANALYSIS

After analyzing all the aspects of the data available and giving some important
recommendations a suitable conclusion which should be derived for this study.
However, before starting the conclusion part, the objective of the research must be
kept in mind so that we can arrive at a befitting conclusion for the research
problem.
The primary objective of this research was to develop a complete understanding of
the overall functioning of PepsiCo India including the sales and distribution
network and marketing (Partner Relationship Management to be precise).
The data collected provided a sound base for understanding the overall
organizational set up of PepsiCo in India. By analyzing the data and the, following
conclusion was inferred:
 The Sales and Distribution Network of Pepsi is very strong and almost
flawless.
 PepsiCo India had the first mover advantage when it entered the market and
it capitalized on that advantage to grab the market.
 Franchisee based operations combined with the Company’s operations add
strength to the overall presence of the Company in the market.
 Franchisee takes care of its operations and PepsiCo does not interfere in its
operations. The Franchisees are required to report to the Company at
specific time intervals.
 The Advertising Campaigns are conceived, implemented by the PepsiCo and
Franchisee has no say in that.
  Because of fierce competition PepsiCo has spend heavily on Ads in order to
increase the brand recall and successfully face the competition.

QUESTTIONAIRE

QUESTIONNAIRE FOR RETAILERS:

Name of the shop/outlet: ..................................................................
Address/Location : ....................................................................
...
Type of outlet : ..............................................................
(a) General Store (b) Pan Shop
(c) Sweet Shop (d) Lassi /Juice Shop
(e) Dhaba /Canteen (f) Others

l .Q. Which brand of soft drinks you deal in ?

(a) Pepsi (b) Coca-cola
(c) Both (d) Other

2.Q. Which brand of cola provides you better facility ?

(a) Pepsi (b) Coca-cola (c) Both

3.Q. How many crates of Pepsi & Coca-Cola you sell/day ?

(a) 0-1 crates (b) 1-2 crates
(c) 2-3 crates (d) 3 & above

4.Q. Which company’s signage you have in your outlet ?

(a) Pepsi (b) Coca-Cola
(c) Both (d) No signage

5.Q. Which company’s visi - cooler you have in your outlet?

(a) Pepsi (b) Coca-Cola
(c) Own (d) both

6.Q. Which medium effects the sales most?

(a) Television (b) Magazines/Newspapers
(c) Display (d) Wall paintings/Hoardings
7.Q. Do you think that aggressive advertising further increase the sales volume of
Pepsi?
(a) Yes (b) No

8.Q.What kind of promotional activities affect sale mostly?

(a) Free bottle scheme (b) Prize
(c) Discount Crates

10 Q Contact person & contact number for further queries?

……………………………………………………………………….

12Q. What is the total number of Pet (Plastic) bottles in your outlet?
…………………………………………………………………………

13Q. How many VG coolers of Pepsi & Coke in your outlet?

Pepsi Coke Own

14Q. Which company, Pepsi or Coke gives more schemes?

……………………………………………………………………………

15Q. Soda of which Company do you keep.?

Pepsi Coke
 FINDINGS

Satisfaction level is also good.

The dealers want more promotional scheme, gifts and quality service.

The dealers want a soft strategy for replacement of lickage bottles.

As per I have visited to dealers outlets, I found that most of the dealers are
selling only Pepsi’s products.

Some dealers are happy with Pepsi products. They got the products by the
company on time due to good distribution channel.
 CONCLUSION

Market share of Pepsi is increased because of effective distribution channel and

demand of the consumers. Since in Jamshedpur and its surrounding area heat
descends more as compared to other parts of the states so obviously demand is
more in this region. The marketing activities of SMV beverages are good but there
is a need of some more promotional activities. Besides this there is certain more
conclusions which are as follows:-

1. Pepsi has got far better position and giving the tough competition to its
competitor coke.

2. Almost all the age group of the consumer like Pepsi and its different flavors.

3. Mirinda is the market leader in orange flavour while Thumps-up is the

leader in sprit flavour and 7up is the leader in cloudy lemon flavour.

4. In pet bottles segment Pepsi is dominating Pepsi has acquired almost 70-
75% share in this segment.

5. 200ml of almost all the flavor has got a significant position in the market and
are in high demand.

6. The young generation is very crazy about the Pepsi and its various products
because of its sponsharship of different cricket tournament and bollywood
stars like Ranbir kapoor, Dhooni Deepika padukoan .

7. Pepsi "YEH PYAAS HAI BADI" and “Yeh hai Youngistaan Meri jaan”
slogans are excellent.
 RECOMMENDATION

Pepsi-Cola should improve the design of the package. As it is advertised as “the

choice of new generation “ the design must be looked young and fresh. So the
colour should be more sharp and attractive.

Distributors should given attention towards the retailers in rural areas. As from the
survey I found that majority of the retailers in these areas preferred to sell Pepsi’s
products inadequate in number and on time.

I found that there is high demand for soft drinks products during the summer
season so by launching ”Mobile PepsiCo shop ”we can attract new customers
especially the college students.

As PepsiCo has always targeted the youth so new posters including the recent
cricketers endorsed for Pepsi AD can be distributed among the retailers to attract
the customer.

From a very long time PepsiCo products are coming with the same type of carat.
So there can be change in carats model as these are also means of ads for a retail
outlets.
 BIBLIOGRAPHY

 www.PepsiCo.com

 www.Pepsizone.com

 www.Pepsiindia.com

 www.google.com