Professional Documents
Culture Documents
Anurag Sahu
Anurag Sahu
DEHRADUN
SESSION: 2007-2010
A
PROJECT REPORT ON
COMPARATIVE ANALYSIS OF PEPSI AND COKE
FOR THE PARTIAL FULFILLMENT OF
H.N.B. GARHWAL UNIVERSITY FOR
REQUIREMENT OF BACHELORS DEGREE IN BUSINESS
ADMINISTRATION
SUBMITTED TO:
SUBMITTED BY:
MR.ASIF KHAN
(LECTURER)
ANURAG SAHU
BBA-VI TH SEM
BB07025
CERTIFICATE
Signature
Name of Guide: MR.ASIF KHAN
Date:
ACKNOWLEGEMENT
This research in itself is an acknowledgement to the inspiration, drive, and technical assistance
contributed without the guidance and assistance that I received from time to time during the whole
research process.
I express my sincere gratitude and ineptness to Mr.OMDEEP GUPTA (HOD) and MR ASIF KHAN
for giving me an opportunity to enhance my skill in the field of my project.
EXECUTIVE SUMMARY
Soft drinks are playing the vital role in the market and the companies are also getting the
good profits on these products. The soft drinks industry has originated in 1772. Now these drinks
spread all over the world and the millions of bottles is consumed every day. Now this business is a
global one and the companies are facing high competition in this business and they are changing their
strategies according to the situations.
Pearl Beverages Pvt. Ltd. Takes a great care to maintain quality control of products in their
factory. The bottles are visually examined for impurities continuously, as the bottles move out.
Samples are checked every ten minutes of production time by the chemist for its quality and hygienic
condition. The chemical analysis is also flavours, gas contain and sugar percentage. The appearance,
smell and taste of the production are suspended and the correcting measures are taken also as to sent
right the bottling process.
The main objective of the study is to find out the strength and weakness of the Pepsi in
visakhapatnam zone when compared to the Coca-cola, that is mainly in the three places in Srikakulam
district i.e. Srikakulam, Narasannapeta, and Amadalavalasa .Consulting almost all the outlets in these
three areas, which are selling the soft drinks with a structured questionnaire, has done the study. The
data has been collected and analyzed and interpreted by the help of the graphical representation
technique.
The analysis revels the various strengths and weaknesses of Pepsi in these areas along with
the position of competitors. The most of the consumers preferred soft drinks because of better taste
and to quench out their thrust. But now days, due to the changing food habits consumers have started
adding the soft drinks in their food habits. The total sales of the soft drinks the Pepsis share is more
but when compared with the Cock the number of outlets are less than Cock.
Finally it can be concluded that the industry needs lot of channel management activities to do
along with various promotional strategies for the customers. I wish the company got its objectives
achieved
CONTENTS
Chapter No
Title
Page No
1.
2.
ORGANIZATION PROFILE
2.1 Genesis and Growth
2.2 Organization Structure
2.3 Production Function
2.4 HR Function
2.5 Finance Function
2.6 Marketing Function
2.7 Future Plans
3.
THEORITICAL FRAMEWORK
3.1 Introduction
3.2 Topic Coverage
3.3 How it relates to Marketing Management
3.4 Measuring Performance
4.
5.
5.3 Suggestions
5.4 Implications for Owners / Managers
5.5 conclusions
5.6 Scope for the Future research
6.
CHAPTER-1
Introduction & Design of the
Study
1.1 INTRODUCTION
In this chapter various accepts of study are going to be discussed. To which area of
management that study belongs to and various concepts that are related the area of study. The present
outcomes under marketing and deals in the specific with the distribution network and its management.
PEPSI COLA was in India from 1956-61 and left the country, as its products were not
acceptable by the Indian customers. But recently in 1990 it re-entered the Indian market, where by
PEPSI FOODS LIMITED was entered into a joint venture with PEPSI INTERNATIONAL, TATA
and VOLTAS.
PEPSI Bottlers and Producers of soft drinks buy concentrate and sell at fixed price and
add a margin rationally for its products.
The same study can be conducted in other areas under bottling unit to generalize the
finding for entire area under it.
There is chance to know whether the Pepsi and Cock are doing the right thing regarding
the sales promotion, product quality, discounts and advertising.
A study on impact of visit coolers sales of Pepsi also be taken up.
To know and compare the merchandising of Pepsi and Cock in retail outlets.
To know the promotional activities of sales promotion, advertising and public relations.
To know the strategy of Pepsi and its competitors regarding the Marketing Mix.
To know the problems of retailers regarding the trade schemes and consumer offers.
To identify the retailers opinion towards Pepsi products.
To know the problems of retailers and to offer the suggestion for improving in sales.
1.5 METHODOLOGY
Introduction:
In this chapter, basically the methodology, by which the report has been prepared, is explained.
The exact need for conducting the study and total design of framework of the report prepared is
discussed. The limitations of the study are also discussed here.
According to the survey beverages can be classified into two segments. The first segment can
be done basing on the milk content, like milk based products like tea, coffee, flavoured milk, and
health drinks (milk, malt and coco) and the second segment can be done on non-milk products such as
soft drinks and mineral water.
According to the survey conducted on the consumption of beverages, Tea comprises 90%,
filtered coffee 4%, beverages 2%, instant coffee 2% and carbonated soft drinks just above 1% of total
consumption.
Soft drinks industry is a well known consumer product industry. It originated in the year 1772.
In the USA first bottled soda was manufactured, by inventing a machine in 1809, the manufacturing of
carbonated soft drink was recorded in the history of soft drink industry.
Now a days soft drink industry is growing very extensively and millions of people are
consuming soft drinks everyday. Age, income, and climate are not at all a barrier for the consuming
soft drinks by the people. This is the reason for the tremendous growth in soft drink market.
Data which is required for the analysis and fulfillment of our objectives has been collected from two
sources. They are
1. Primary sources
2. Secondary sources
PRIMARY DATA:
Primary data is collected from the retailers through a structured questionnaire. It includes the
first hand information from the outlets. It can view as a survey. The questionnaire was especially
designed to find out the market share of the soft drinks and problems and weakness of Pepsi in that
particular area. The chapter deals with main analysis part of the study and the dealer outlets covered in
the study is
Srikakulam
Narasannapeta
Amadalavalasa
SECONDARY DATA
Secondary sources include the information collected from the annual reports, published and
unpublished records of the company .various books and journals and internet also being used for
collecting the relevant data
After gathering the data from those two sources the data was analyzed, tabulated and
interpreted and finally suggestions were offered for the betterment of the company.
The study of the soft drink industry which is known to be seasonally fluctuating on e percent
study does not take into account seasonal fluctuations. The results may not suit for all the
seasons
Personal basis may be existing as the dealer of varied nature elicits the information
Chapter-2
Company overview
2.1 INTRODUCTION
In this chapter, an over of all the major accepts related to the study is discussed. The total
industry profiles the soft drinks industry globally and in our country. The profile of the company with
respect to its operation number of franchises, market share of the company and many other factors
would be discussed here.
Non alcoholic soft drink beverage market can be divided into fruit drink and soft drink. Soft
drinks can be further divided into carbonated and non carbonated drinks. Colas, lemon and oranges are
carbonated drinks while mango drinks come under non-carbonated drinks. Cola, lemon and oranges
are carbonated drinks while mango dinks comes under non-carbonated category. The soft drinks
market till early 1990s was in hands of domestic players like Coke, Thumps Up, Limca etc. but with
the opening up of economy and coming of MNC players Pepsi and Cock the market has totally under
their control. Worldwide, Cock is the leader in carbonated drinks market. In India it is Pepsi, which
scores over cock but this difference is fast decreasing. Pepsi entered Indian market in 1991. Cock reentered (after they were thrown out in 1977, by then central government) in 1993.
Pepsi has been targeting the youth and the sales have been doing well by sticking to this youth
segment. Cock on the other hand struggled initially in establishing itself in the market. In a span of 7
years of its operations in the country it changed its CEO four times they seem to have started
understanding the pulse of Indian consumers.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense thin in disposable containers.
SEGMENTATION:
The soft drink market can be segmented on the basis of place of consumption and on the basis
of type of products.
The segmentation on the basis of place of consumption divides the market into three parts:
1. on-permise-80% of the consumption of soft drinks is on premise i.e. restaurants, railway
stations, cinemas etc,
2. At-home the rest 20% of the market compromise of the soft drink purchased for consumption
at home.
The market can also be segmented on the basis of types of products into Cola products and non-cola
products.
1. cola products account nearly 62% of the total soft drinks market. The brands that fall in this
category are Pepsi, cola, Thumps Up, Diet Pepsi etc.
2. non-cola segment, which constitutes 36%, cam be divide into 4 categories based on the type of
flavour available, namely
Orange
Cloudy lime
Clear lime
Mango
I. Orange flavour based soft drinks constitutes around 17% of the market. The
segment is largely dominated by national brands like Fanta of Coca-cola Co.
and Mirinda Orange of Pepsi Co. rest of the market is in hands of smaller
brands like Crush (earlier Cadbury Schweppes and now of Coca Cola), Gold
Spot etc.
II. Cloudy Lime flavour constitutes 14% of the market and is largely dominated by
Limca of Coca Cola and Miranda Lemon of Pepsi Co.
III. Clear Lime this segment of the market witnessed good growth initially with all;
the players launching their brands in the segment. But now the growth in the
segment has slowed down. The brands available in this segment are 7 Up ,
Mountain dew of Pepsi, Sprite of Coca-Cola and Canada Dry( earlier of
Cadbury Schweppes and now of Coca Cola). The segment constitutes 3% of the
total soft drinks market.
IV. Mango flavour segment constitutes 2% of the total soft drinks market and it
directly competes with mango based fruit drinks like Fruity. The leading brands
in this segment are: Maaza of Coca Cola and Slice of Pepsi.
There is very thin line of difference between the clear and cloudy lime. The most obvious
feature is that clear lime has to be bottled in green bottles as sunlight harms the drink and changes the
taste.
There are some small local brands at city or regional levels. Most of these are either merging
with two big players (Coca Cola and Pepsi) or they command a very small less than 3% of the total
market in their respective areas.
Soft drinks come under the category of products on impulse. This attitude of impulse
buying is slowly changing to occasion-led buying and also to some extent consumption
through home refrigeration particularly in urban areas.
The market is slowly moving from alcoholic carbonated drinks to fruit based drinks and
also plain bottled water due to lower price and ready availability.
Consumers purchase soft drinks particularly to quench thirst and therefore on travel not
having access to hygienic water reaches out for soft drinks.
Availability in the chilled form also plays a crucial role in purchase decisions. This has
made both the companies to push its sales and to increase its retail distribution by
offering Visi coolers to retailers
Why is there no aversion to consumption of soft drinks to any age group, the main
consumers of this market are people in the age group of 30 and below.
Product differentiation is very low, as all the products taste the same. But brand loyalty
is high in the case of kids and people in the age group of 20-30 years
The two global majors Pepsi and Coca Cola dominate the soft drink market in India. Coca
Coal, which would up its operations during the introduction of the FERA regime, reentered India 16
years later in 1993. Coca Cola acquired a major chunk of soft drink market by buying out local brands
Thumps up, Limca, Maaza and Gold spot from Pearl beverages, Coca Cola has also acquired Cadbury
Schweppes soft drink brands Crush, Canada Dry and Sport Cola in early 1999 and now recently in
Oct.2008 .It acquires distribution rights of these brands from IFB Agro Ltd . Pepsi stated a couple of
years before Coca Cola manufactures came up with their own market share figures and claimed to
have increased their share.
Retailers started that the consumers are loyal to the particular segment of the soft drink
i.e. Coca Cola, Orange or Lemon. But as for the loyalty for the brands in each segment
is concerned, it is not very significant.
43% of the retailers surveyed told that in the soft drink industry advertising is the key
component, it drives sales. While 32% stated promotional schemes and 20%brand
loyalty as the reason.
As consumers are not very brand loyal where the purchase of the soft drink purchase is
concerned, the retailer purchase becomes a critical issue. They usually sell the product
in which they get maximum benefit. For this, the companies try to offer them higher
margins.
While distributors get the margin of Rs 8-9 per crate (1 crate is equal to 24 bottles) at 3-4% of MRP,
retailers are given margin of 10-12 % of MRP. The retailers are not happy with this, as the cost of
refrigeration very high for soft drinks to overcome this problem the companies are offering Visi
coolers schemes to their main retailers
Pepsi Co Inc. was founded by Donald M. Kendall, President and chief executive officer of Pepsi Cola
and Herman W. Lay, Chairman& Chief executive of FRITO-LAY through the merger of two
companies in the year 1965.
Diet Pepsi(1964)
Superior Products.
PEPSI-COLA COMPANY:
Calets Bradham, New Beru and Mc.Druggist who first formulated Pepsi coal founded Pepsi
Companys beverage business at the turn of the century.
Brand Pepsi and other Pepsi-cola products including Diet Pepsi one, Mountain Dew, Slice and
mug brands account for nearly 1/3 rd of the total soft drink in United States.
Outside U.S Pepsi Cola Companys soft operations include the business of 7up international.
Pepsi-cola beverages are available in about 170 countries.
Key Pepsi-cola international market includes Argentina, Brazil, china, India, Mexico,
Philippines, Saudi Arabia, Spain, Thailand, and the United Kingdom.
Pepsi-cola provides advertising, marketing sales and promotion support to the Pepsi-cola
bottles. New advertising and existing promotions keep Pepsi-cola young. The company
manufacture and sales of the soft drinks are concentrated to the Pepsi-cola bottles.
In 1986, North America van lines (NAVL), a premier transportation company Pepsi co, and renamed a
strong contribution to the Pepsi unit it has divided in 1984.
In 1969 in bold modern Pepsi cola packing which was using red, white and blue were introduced.
FRITO-LAY introduced fungus brand onion flavoured snacks. In 1970 Pepsi introduces the industrys
first two litter bottles. Pepsi is the first company to respond to consumer preference with light weight,
recyclable, plastic bottles.
In 1971 Andral E. Pearson was appointed as president of PepsiCo, a position he held until his
retirement in 1984.in 1972 don Kendall announced agreement making Pepsi cola the first foreign
product sold in U.S.S.R. Pepsi co is given exclusive rights to import Stolichnaya Russian vodka in the
U.S.
In 1973 and 1974 Pepsi-cola became the first American consumer product to produce made and sold
in former Soviet Union.
In 1975 Pepsi Lite, with destructive lemon taste, is introduced as an alternative to traditional diet colas.
In 1976 PepsiCo adopts code of worldwide business conduct. Pepsi-cola became the single largest
selling soft drink brands sold in U.S super markets. In 1977 PepsiCo shares spilt up three for one. In
1987 and 1979 the opening of PepsiCo research and technological center in Vallah N.Y PepsiCo
reached 85 billion marks in sales. Pepsi was formed to focus on the overseas development of
restaurants. In 1981 PepsiCo fitness center was completed, making PepsiCo, one of the most advanced
companies in the area of employees health and fitness.
In 1982 Pepsi free and diet Pepsi free, the first major brands caffeine free colas were introduced.
DescriptionandLaunchofproducts
Brand name
Pepsi
Mirinda
7 Up
Mirinda Lime
Soda
Flavour
Cola
Orange
Clear Lemon
Cloudy Lemon
Soda
Date
April-1992
April-1992
April-1992
April-1992
April-1992
Pepsi
Pepsi Dite
7 Up
Mirinda(o)
Mirinda(L)
Slice
Evervess
Coca-cola
Cock Dite
Sprite
Fanta
Limca
Maaza
soda
Kinleys
Pepsimarketshare:
Pepsi
: 47%
Coca-cola : 53%
Pepsifoods(Pvt.)Ltd.
Pepsi cola was in India from 1956 to 1961. it left this country, as its products were not
found acceptable to the Indian market. Pepsi foods Ltd. Joint venture between Pepsi Co. international
of US(which is holding 40% of the equity)and Tata concerns Voltas and the Punjab Ago industries
Corporation (each of which have as round 25% of the equity),has 25%of its output reserved for
beverages with a 50% export commitment fo9r fruit and vegetable products. According to Pepsi
officials the project guarantees that for every American dollar the company takes out of India, it will
bring five back.
They started concentrated factory in Punjab. This company named as Pepsi Foods Ltd.
Pepsi Co. internationals direct investments in India so far amounts to Rs.165 corer. Two thirds of this
however has gone into food processing. Pepsi foods are exporting fruits and vegetables to UK etc.
The Pepsis foods processing unit directly supervised 1,200 hectors under tomato
cultivation covering 183 villages and 319 farmers. The companys technical inputs enabled the farmer
to achieve a yield of 35 to 50 tones a hector against the average of was after discontinuing teems.
KMBC Pvt. Ltd. Has was the bottle for five districts Vizag, Vizianagaram, Srikakulam, and East
Godavari & West Godavari. It receives the stock from Cuttack.
PRODUCTPROFILE
The Pepsi Co. is known for the development and introduction of world-class brands &
products. Their portfolio is organized into three core business, which consists of snacks, Beverages
and Restaurants. Pepsi products are constantly changing themselves to develop new products. They
encourage consumer to explore their wide range of brands.
Mainobjectives:
The objectives of the company set out in memorandum of association and franchise
agreements are as follows:
To manufacturing soft drinks by concentrating supplied by Pepsi Foods.
To market and advertise within specified areas for Pepsi products.
To sell soft drinks at fixed prices.
financialstructure:
To start and operate business, any company has to invest its capital in fixed assets and
floating assets and also in meeting the daily requirements of the company. However, depending on the
nature of business and product being offered by the company, the ratio of investment of capital in
fixed and floating assets differ.
Working Capital:
It means capital required for daily management of the company eg. Wages, salaries,
canteen expenses and transportation expenses etc
Plant layout: the machine and equipment have been imported from Germany, which are
arranged in the plant according to the sequence of operation. All the operations are carried on a
continuous movement. The reasons for choosing the product layout are:
1. There is continuous supply of material.
2. The brands are all standardized products.
3. The demand for the product brands is reasonable stable.
4. The volume of production is adequate for the reasonable utilization of equipment.
Since the company follows continuous operation movement, the cost of material handling
goes low. The total floor space required by the machine is less than other types of plant layouts.
PlantCapacity:
The company installed latest up to date automatic plant conforming to plant layout. The
installed production capacity is 400 bottles per minutes i.e. 24,000 bottles per day. The plant also is
having 100 bottles per 1-leter line. During off-season the plant runs one shift. The company has to
produce enough bottles of soft drinks at a speed to keep in space with the disappearance of soft drinks
form shelves of the retailer.
ProductionSchedule:
The production schedule is fixed by taking into consideration.
The present or current market demand.
The availability of empty bottles.
The inventory position filled bottles of different flavors.
The production schedule for each brand is fixed daily, filling the bottles of each branded flavors.
This has an advantage in manufacturing the branded product is one at a time.
Qualitycontrol
Pearl Beverages Pvt. Ltd. takes great care to maintain the quality control of the products
in their factory. The Bottles are visually examined for impurities continuously, as the bottles move out.
Samples are checked every ten minutes of production time by the chemist for its quality and hygiene
condition. The chemical analysis is also made for flavors, gas content and sugar percentages. The
appearance, smell and taste of the products are also checked. If any defects are noticed, the production
is suspended and the correcting measures are taken so as to set right the bottling process irregularities.
Further, samples from each batch are dispatched to the affiliated parent agency company in each week
for quality checkup. Moreover, agency of the company also lifts sample form the market at the random
for quality checkup at any time to make sure that the quality is maintained to the exact standard of the
parent company.
At the end of the production schedule, daily all the equipment floor and wet patches are
cleaned with bleaching powder or some other solution. The standards of hygiene maintained inside the
production shops are commendable.
OrganizationStructureandmanagement:
The word organization has two common meanings. The meaning signifies an institution or
function as group and the second meaning refers to the process of organizing the way of work which is
arranged and allocated among members often organization so that the goal of the organization can be
achieved efficiently. The organizing involves balancing the companies. Needs both for stability on one
hand and change on the other hand, an organization structure means adopting a change or it can be a
source of resistance to change.
There are mainly five elements of organization structure.
Specialization of activities.
Standardization of activities.
Coordination of activities.
Centralization and decentralization of deviation making.
Size of the work unit.
The M.D, Mr. Ruchirans Jaipuria is athe head of the organization and administration. The
company is managed by able director, and is assisted by a team of well-qualified & experience senior
management personnel.
LISTOFTHEEMPLOYEESINPEARLBOTTELIGNCOMPANY
The following table shows the description of employees along with designation & no. of
employees:
S.No
Description
No. of employees
COMMERCIAL MANAGER
VICE PRESIDENT
TRAINING MANAGER
ADMINISTRATIVE MANAGER
10
PRODUCTION MANAGER
11
12
STORE EXECUTIVES
13
25
14
TERRITORY C0-ORDINATOR
15
ROUTE AGENT
50
16
SALES TRAINEE
17
CHEMIST
18
ACCOUNTANTS
19
SUPERVISOR
20
CLERKS
21
OPERATORS
10
22
ELECTRICIANS
10
23
FITTERS
24
12
25
SECURITY OFFICER
26
SECURITY GUARDS
27
OFFICE BOYS
13
28
CHAPTER-3
Theoretical Framework
3.1 INTRODUCTION
The main part of the report i.e. Analysis part is covered in this chapter. I did survey in 300
outlets in 3 various areas. After conducting the survey I interpreted the total collected information
using a structured questionnaire. The required information is derived from that interpretation and
analysis. This analysis part contains tables and pie charts. We can come to a conclusion from the final
information from this chapter. Because of that reason this chapter is very important in the entire study
of the project. Without this interpretation we can conclude the total survey and also can not understand
the position of any company and the opinion of the customers regarding the company.
SAMPLE SIZE
130
90
80
AREA
Srikakulam
Amadalavalasa
Narasannapeta
I started my survey first at Srikakulam on 4/02/09 and my study completed on 18/02/09 with
Amadalavalasa. I personally went to every outlet and asked the total details of which are in the
questionnaire and filled those things. Some of the retailers denied giving the details and I waited there
with patience and collected all the data. In my survey I learned a lot and collected the useful
information and also got good experience in the market field and came to know many things which are
not in our books through this survey. I almost covered all the retail outlets which are situated in these
areas and collected the correct information.
Market
Srikakulam
Amadalavalasa
Narasannapeta
Pepsi
5
5
5
Cock
6
5
7
Pepsi
Coke
Srikakulam
Amadalavalasa
Narasannapeta
of Pepsi &
No of Types
5
Coke6brands available
in Average
6
5.8
5.6
5.4
No of Types
5.2
5
4.8
4.6
4.4
Pepsi
Coca-Cola
INTERPRETATION:
In my survey of 300 retail outlets in 3 areas, I found 5 brands of Pepsi out of its 10 brands and
6 Brands of Coke is available out of its 10 Brands on average. So the brand availability of Coke is
more when compared to Pepsi.
Brands
Percentage
1.
2.
3.
4.
Slice
Mirinda
Sprite
Limca
46
24
20
10
Limca
Sprite
Mirinda
Percentage
Slice
0
10
20
30
40
50
S.No
Brands
Percentage
1
2
3
4
Mirinda
7 Up
Sprite
Thumps Up
46
24
17
13
Thumps Up
Sprite
7 Up
Mirinda
Percentage
10
20
30
40
50
Narasannapeta Market
S.No
Brands
Percentage
1 45
Mirinda
42
Sprite
26
7 Up
18
Slice
14
2 40
35
3 30
4 25
20
15
10
5
0
Percentage
Mirinda
Sprite
7 Up
Slice
Brands
Srikakulam
Amadalavalasa
Narasannapeta
Pepsi
52
45
42
Coke
44
35
50
Srikakulam
Amadalavalasa
Narasannapeta
Market Areas
No of Types
3
Pepsi
45
Coke
0
0
55
45
55
10
20
30
Brands
No of Types
40
50
60
INTERPRETATION:
In my survey of 300 outlets in three areas I found Pepsi is occupying 55% and the Coke is
occupying 44% in the total market in average. From this we can understand that the Pepsi sales are
more when compared to Coke.
S.No
% of occupation
70
Companies
Market Service Required
Daily from
Alternative
Days Weekly Twice
Srikakulam
63
25
12
2 60
Amadalavalasa
49
27
24
3 50
Narasannapeta
55
36
9
Daily
Alternative Days
Weekly Twice
40
30
20
10
0
Srikakulam
Amadalavalasa
Narasannapeta
Market Areas
Daily
Alternative Days
Weekly Twice
55
30
15
Daily
Alternative Days
Weekly Twice
INTERPRETATION:
In my observation of 300 outlets in three areas I found that 55% of the retailers want the daily
service,70
30% retailers want Alternative Days and the remaining 15% of the retailers want the service
weekly twice.
60
S.No
1
50
40
2 %
30
3
Market
Good
Satisfactory
Bad
Srikakulam
60
40
Amadalavalasa
65
30
Narasannapeta
70
28
20
10
0
Good
Satisfactory
Service
Bad
15Srikakulam
22Amadalavalasa
3 Narasannapeta
60
S.N0 50
Market
Good
Satisfaction
Bad
Srikakulam
45
50
Amadalavalasa
40
55
Narasannapeta
45
50
40
3
% 30
20
10
0
Good
Satisfaction
Service
Bad
5
1 Srikakulam
2 Amadalavalasa
3 Narasannapeta
Good
Satisfaction
Bad
Pepsi
65
33
43
52
Percentage
Coke
60
50
Good
satisfactory
Bad
40
30
20
10
0
Pepsi
Coke
Brand
INTERPRETATION:
INTERPRETATION:
In my survey of 300 outlets I found that 65% of the retailers expressed good in case of Pepsi
and 43% incase of Coke. 33% in the case of Pepsi and 52% in case of Coke expressed satisfactory and
finally remaining retailers expressed bad to the service of the companies.
Trade Schemes
70
S.No
Market
Pepsi
Coke
1
2
3
Srikakulam
Amadalavalasa
Narasannapeta
41
49
41
59
51
59
Percentage
50
40
Pepsi
Coke
30
20
10
0
Srikakulam
Amadalavalasa
Narasannapeta
Market Area
Trade Schemes
44
Trade Schemes
Given
56
Pepsi
Coke
INTERPRETATION:
By observing the above pie chart we can understand that 56% of the traders expressed
their happiness towards the schemes of the Coca-Cola and the remaining 44% traders expressed their
happiness towards Pepsi company in case of their trade schemes.
S.No
Market
Pepsi
Coke
Srikakulam
61
39
Narasannapeta
Narasannapeta
Amadalavalasa
Consumer
Amadalavalasa
Market Areas
Srikakulam
Promotions
offered
57
60
43
40
Coke
Pepsi
10
20
30
40
percentages
50
60
70
Consumer Promotion
Pepsi
59
Coke
41
Consumer Promotions
Pepsi
Coke
INTERPRETATION:
In providing consumer promotion by way of giving the prizes to the consumers and other
ways to promote the sales, Pepsi was able to attracted 59% of the retailers with its promotional
schemes. In case of Coke it attracted the remaining 41% of the retailers by their consumer promotional
schemes and activities.
Market
Yes
No
Srikakulam
74
26
Amadalavalasa
51
49
Narasannapeta
60
40
80
70
percentage
60
50
Yes
No
40
30
20
10
0
Srikakulam
Amadalavalasa
Narasannapeta
Market Areas
62
N0
38
Yes
N0
INTERPRETATION:
The above chart shows the opinions of the retailers that weather T.V ads will help to increase
the sale of the soft drinks. In this 62% of the retailers expressed positively and the remaining 38%
retailers expressed negatively to this question.
Market
Good
Less
Same
Srikakulam
55
40
Amadalavalasa
30
63
Narasannapeta
40
48
12
50
Good
Less
Same
40
30
20
10
0
Srikakulam
Amadalavalasa
Narasannapeta
Market Areas
Good
Less
Same
No of outlets in average
42
50
No of outlets in average
Good
Less
Same
INTERPRETATION:
In the above chart the opinions of the retailers were given. From that 42% of the retailers
expressed the view of good increase in the sale by2008 when compared to 2007. 50%of the retailers
expressed the view of less increase in the sale and the remaining 8% of the retailers expressed the view
of the same sales and there is no increase in the sales.
Market Area
30%
20%
10%
Srikakulam
30
33
37
Amadalavalasa
29
34
37
Narasannapeta
34
32
34
Percentage
30
25
30%
20%
10%
20
15
10
5
0
Srikakulam
Amadalavalasa
Narasannapeta
market Area
Result
30%
20%
10%
31
33
36
30%
20%
10%
INTERPRETATION:
By observing the above chart we can understand that the demand for the juice based soft
drinks is increasing rapidly. For that the companies better to concentrate on the juice based soft drinks
introducing and their sales.
11. Pepsi Visi coolers and other coolers available in the Market
S.No
Market
Pepsi cooler
Srikakulam
32
68
Amadalavalasa
21
79
Narasannapeta
31
69
Percentage
70
60
50
40
30
20
10
0
Srikakulam
Amadalavalasa
Narasannapeta
Market Areas
Pepsi cooler
Average of Outlets
28
72
Average of Outlets
INTERPRETATION:
In the areas where I did my survey I found 28% of the retailers are using the Pepsi Visi
Coolers and the remaining 72% of the retailers are using the Coke and Other coolers. From this we can
suggest that Pepsi have to increase their Visi Coolers supply.
Market Area
Electricity Bill
No Own Cooler
Srikakulam
35
65
Amadalavalasa
58
42
Narasannapeta
56
44
Percentage
50
40
30
20
10
0
Srikakulam
Amadalavalasa
Narasannapeta
Market Area
Electricity Bill
No Own Cooler
S.No
Electricity Bill
No own cooler
49
51
Electricity Bill
No own cooler
INTERPRETATION:
When I did the survey I observed that many of the retailers are keeping the other
products in Pepsi Visi Coolers and they gave some sort of explanation for that. In those reasons 49%
of the retailers said Electricity bill is the problem and the remaining 51% of the retailers said that they
dont have their own coolers. They should be restricted.
S.no
Market
Male
Female
All People
Youth
Srikakulam
18
10
59
13
Amadalavalasa
12
11
56
21
Narasannapeta
19
18
39
24
40
30
20
10
0
Srikakulam
Amadalavalasa
Narasannapeta
Market Areas
Opinion
Male
Female
All People
Youth
Avg % of outlets
16
13
51
20
Male
Female
All People
Youth
INTERPRETATION:
In the above pie chart the consumption of soft drinks mostly by four categories. 51% of
the total consumption is by All People, 20% by the Youth, 15% by the Male and the remaining 13% is
consumed by the Female. We can say that the consumption of soft drinks by the youth is increasing.
S.No
Market
Pepsi
Pepsi
Cash
Credit
Srikakulam
100
100
Amadalavalasa
100
100
Narasannapeta
100
100
1 Srikakulam
2 Amadalavalasa
60
3 Narasannapeta
40
20
0
Pepsi Cash
Pepsi Credit
Coke Cash
Coke Credit
Brands
INTERPRETATION:
From the above pie cart we can understand that both the Pepsi and
Coke companies are not providing any credit to the retailers. All the retailers are
purchasing the soft drinks on cash only.
Market
At Shop
At Home
Srikakulam
80
20
Amadalavalasa
70
30
Narasannapeta
75
25
At Shop
40
At Home
30
20
10
0
Srikakulam
Amadalavalasa
Narasannapeta
Market
At Shop
At Home
75
25
At Shop
At Home
INTERPRETATION:
From the above pie chart we can understand that in the areas I
did the survey 75% of the Soft Drinks are consumed at the Shops and the
remaining 25% of the Soft Drinks are consumed at Home.
Chapter-4
SUMMARY, FINDINGS &
SUGGESTIONS
4.1 INTRODUCTION
4.2 FINDINGS
1) The company is maintaining the quality of the products and it has good quality control Dept.
2) Now a day because of changing the food habits the soft drinks are added to their food habits.
3) Pepsi soft drinks are occupying more than half of the soft drinks market.
4) The demand for the fruit based soft drinks is go on increasing and they occupied the top selling
drinks position.
5) Sales promotion activities taken by the Pepsi Company is good as per the retailers opinion when
compared to coke.
6) The Pepsi Companys supply of drinks is good but they are not providing the
sufficient drinks to the outlets.
7) The No. of Visi coolers in the market is less when compared to the Coke
Company.
8) Some of the retailers are placing the other products also in the company
coolers.
9) Pepsi companys offers to the retailers are not good in the view of the
retailers.
10)
not giving the proper information about the new products and the new offers
given by the company.
4.3 SUGGESTION
1) The company has to increase its quality more and also has to introduce
more verities of drinks in to the market to increase its market share.
2) It has to change the advertisements in a manner that add the soft drinks
as a part of food.
3) The Pepsi has some more scope to increase its market share and it has to
strive for that.
4) Company has to concentrate on the fruit based drinks and add some more
fruit based drinks to the product line.
5) The Pepsi Company has to increase the No. of Visi Coolers in the market.
6) The retailers are using the Pepsi Visi Coolers for other drinks also, they
have to control that. For that purpose the company has to recruit some
people.
7) Pepsi Company has to increase the trading offers to the retailers.
8) The dealers should provide the sufficient information to the retailers about
the products and the new offers to the retailers provided by the company.
9) The dealers should be provided the credit up to some limits by the
company.
10) The Advertisement should be given as a whole, that will bring the
awareness about the products and reduce the advertisement cost of the
company also.
4.4 CONCLUSION
The project was a great experience for me in order to study the marketing
aspects in the world. It was a great opportunity for me to express what I have
studied.
This industry is a place where two major players are there in the world.
This Pepsi Company gave me lot of opportunity and scope to understand the soft
drink industry and its marketing structure and distribution channels.
Lot of voluble information regarding the company and also the retailers,
has been collected from the survey, which helped me clearly to understand the
real problems faced by the marketers to distribute and also make retailers to sell
the companys products in the market. I understood who difficult to do the
marketing in the present scenario.
The suggestions made to the company were really applicable for the
growth and benefit for the company in order to increase its market share and to
become the market leader in the soft drink industry, because a large number of
competitors craving for the same market.
Thus, finally it can be said that the industry needs a lot of channel
management activities to done along with various promotional strategies for the
customers. I wish the company to achieve its objectives achieved soon.
BIBILOGRAPHY
S.No
1.
2.
Author
Philip kotler
VS Ram Swami
Title
Publisher
Volume
Year
12th
2005
Mac Millan
3th
2005
Biztantra
8th
2005
Marketing
Prentice,
Management
Hall of India
Marketing
Management
3.
Joel R. Evans
Berry Berman
Marketing
4.
Chunawalla S.A
Advertising
Hall of India
12th
QUESTIONNAIRE
Name of the Student:
Date of Survey:
1.
2.
Mirinda orange
Mirinda Lemon
2005
7 Up
Mountain Dew
Slice
Evervess Soda
Diet Pepsi
Aquafina Water
Total
3.
4.
5.
Fanta
Coca- Cola
Sprite
Kinely Water
Kinely Soda
Limca
Maga
Minute Made
Diet Coke
Total
2nd ______________
3rd ______________
4th _______________
6.
7.
C. Weekly 2 times
8.
B. Alternate Days
B. Satisfactory
C. Bad
B. Satisfactory
C. Bad
9.
10.
Coke
Coke
____________________________________
11.
Do you feel T.V advertisements by drink companies help in more sales of Drinks?
Yes
12.
13.
Less
Same
14.
No
20%
10%
15.
Electrical Bill
No Own Cooler
16.
What is the percentage contribution of soft drinks business in your total business?
_____________________________
17.
What is the shop keeper suggestion to improve Pepsi Company Sales in 2009?
______________________________________________________________
18.
19.
20.
Female
By All
By Youth
Cash
Credit
Coke
Cash
Credit
What is the percentage of sale of drinks at your shop and consumer residence?
Shop
Home
most talented people. In keeping with this growth strategy, PepsiCo is proud to be listed on the Dow
Jones North America Sustainability Index and Dow Jones World Sustainability Index.
Mrs. Nooyi was named President and CEO on October 1, 2006 and assumed the role of Chairman on
May 2, 2007. She has directed the company's global strategy for more than a decade and led PepsiCo's
restructuring, including the divestiture of its restaurants into the successful YUM! Brands, Inc.; the
spin-off and public offering of company-owned bottling operations into anchor bottler Pepsi Bottling
Group (PBG); the acquisition of Tropicana and the merger with Quaker Oats that brought the vital
Quaker and Gatorade businesses to PepsiCo.
Prior to becoming CEO, Mrs. Nooyi served as President and Chief Financial Officer beginning in
2001, when she was also named to PepsiCo's board of directors. In this position, she was responsible
for PepsiCos corporate functions, including finance, strategy, business process optimization,
corporate platforms and innovation, procurement, investor relations and information technology.
Between February 2000 and April 2001, Mrs. Nooyi was Senior Vice President and Chief Financial
Officer of PepsiCo. Between 1996 and 1999, Mrs. Nooyi was Senior Vice President of Corporate
Strategy and Development.
Before joining PepsiCo in 1994, Mrs. Nooyi spent four years as Senior Vice President of Strategy and
Strategic Marketing for Asea Brown Boveri, a Zurich-based industrials company. She was part of the
top management team responsible for the company's U.S. business as well as its worldwide industrial
businesses, representing about $10 billion of ABB's $30 billion in global sales.
Between 1986 and 1990, Mrs. Nooyi worked for Motorola, where she was Vice President and Director
of Corporate Strategy and Planning, having joined the company as the business development executive
for its automotive and industrial electronic group. Prior to Motorola, she spent six years directing
international corporate strategy projects at the Boston Consulting Group. Her clients ranged from
textiles and consumer goods companies to retailers and specialty chemicals producers. Mrs. Nooyi
began her career in India, where she held product manager positions at Johnson & Johnson and at
Mettur Beardsell, Ltd., a textile firm.
In addition to being a member of the PepsiCo board of directors, Mrs. Nooyi serves as a member of
the boards of the International Rescue Committee, Catalyst and Lincoln Center for the Performing
Arts. She is a Successor Fellow of Yale Corporation and member of the Board of Trustees of
Eisenhower Fellowships, and she currently serves as Chairman of the U.S.-India Business Council.
She holds a BS from Madras Christian College, an MBA from the Indian Institute of Management in
Calcutta and a Master of Public and Private.