A SUMMER TRAINING PROJECT REPORT ON

“ANALYSIS OF ANTI PEPSI BEHAVIOUR OF RETAIL OUTLETS”
SUBMITED TOWARDS PARTIAL FULFILMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BYPRADEEP PANKAJ SINGH PGDM(2008-10) ENROLMENT NO-2029742128.

FACULTY GUIDE MR. VISHAL AGGARWAL ASSOCIATE PROFESSOR BLS INSTIUTE OF MANAGEMENT

INDUSTRY GUIDE MR. RAVEND BIJLANI C.E. SHUKLA SALES PEPSICO HOLDINGS INDIA LIMITED, LUCKNOW,

BLS INSTITUTE OF MANAGEMENT
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Opposite Mohan Meakin Factory, Mo h a n N a g a r , G h a z i a b a d .

PREFACE

The PGDM programme is well structured and integrated course of business studies. The main objective of practical training at PGDM level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The PGDM programme provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. Training is an integral part of PGDM and each and every student has to undergo the training for 2 months in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that “Experience is the best teacher”.

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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for Pepsico Holdings India Limited. It has been an enriching experience for me to undergo my summer training at PEPSI, which would not have possible without the goodwill and support of the people around. As a student of BLSIM I would like to express my sincere thanks too all those who helped me during my practical training programme.

Words are insufficient to express my gratitude toward Mr. Ravend Bijlani, the Customer Executive of Shukla Sales, Lucknow, Mr. Vishal Aggarwal Project Guide and Mr. Kuldeep Kaul (Marketing Head of Department Of BLSIM) My heartfelt thanks go to all who helped me to gain knowledge about the actual working and the processes involved in various departments. However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

Thanking You Pradeep Pankaj Singh Enrollment No. 2029742128

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DECLARATION

I, Pradeep Pankaj Singh, do hereby declare that the summer internship project report submitted by me for the partial fulfillment of requirement for the Post Graduate Diploma in Management of BLS Institute of Management Ghaziabad. This has not been submitted to any other university/ institution for the reward of any degree/ diploma certificate.

Pradeep Pankaj Singh

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Sr.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Content Executive Summary Objective of Summer Training Introduction of Project History of Company Company Profile Research Methodology Project Analysis Finding & Suggestion Conclusion Questionnaire Bibliography

Page No. 6 7 8 9-11 11-41 42-48 49-61 61-62 63 64 65

INDEX

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EXECUTIVE SUMMARY I, Pradeep Pankaj Singh felt privileged to be a part of BLS Institute of Management Mohan Nagar, Ghaziabad. I did my summer internship training in Pepsico Holdings India Limited a FMCG sector company. My project title is “ANALYSIS OF ANTI PEPSI BEHAVIOUR OF RETAIL OUTLET”. The project’s basic objective is to analyzing the anti Pepsi behavior of retail outlets under the distributorship of Shukla Sales, sitapur road, lucknow.

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In this project I surveyed in areas of Shukla Sales and asked selected questions to the outlet owners who were either not selling pepsi products or selling in very less quantity.

Out of my project I learnt these things: Pepsi should understand the expectations of people If one wants to grow in FMCG sector one should keep the following factors in mind that the products are easily available to the consumers, to improve the quality of products from time to time, competitive services should be provided to the retailers, the price of the product should be low and last but not the least the visibility and the promotional strategy should be such that it hits people’s mind.

OBJECTIVE OF THE SUMMER TRAINING

TOPIC : - “Analysis of Anti Pepsi Behaviour of the Retail Outlets”

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During my summer training I have worked on the topic “Analysis of

Anti Pepsi Behaviour of the Retail Outlets”
In Pepsi Co India Holding Pvt. Ltd the work of Anti Pepsi Outlet Survey was given to me . I have done this survey keeping in mind the following objectives which I have mentioned below Study those outlets which are not promoting Pepsi products in the area

covered in Shukla Sales, Lucknow

To analyze the reasons of not selling Pepsi at retailers level. To study the retailers satisfaction. To find out the ways to enhance the sale of Pepsi.


INTRODUCTION

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Beverage industry is one of the fast growing industries in India .it can be divided into two sections i.e. carbonated and non-carbonated. the carbonated drinks that can be further classified into cola, lemon orange, mango and apple segments. Marketing includes all the activities like promotion, distribution, advertising etc. To fulfill all the segments of consumers. Marketing is also to convert social needs into profitable opportunities. So this topic provides all the essentials to theoretical knowledge with practical knowledge and to inculcate the efficiency. it is also requirement for the company to improve their service and product quality for achieving their ultimate goal. As far as the soft drink market is concerned, it is facing the cut throat competition because of the availability of a large number of indirect as well as direct competitors. Single company offers the soft drink to the market in different taste and flavors. In this industry entire range of flavors are produced by other competitors also. More often it becomes impossible to differentiate between the same flavors of two different brands, when served in plane container, range also. All these factors together make the situation complicated. besides both corresponding brands have the similar price.

COMPANY’S HISTORY

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BEVERAGES

Pepsi Cola Company
Caleb Bradham, a New Bern, N.C. druggist who first formulated Pepsicola, founded Pepsi Co.’s beverage business at the turn of the century i.e. in the year 1890. A young phannacist Called Bradham began experimenting in 1890 as a cure for dyspepsia (indigestion) with combination of spices, 1 juices and syrups and created a refreshing new drink to serve his customer. He succeeded beyond all expectations as he invented the new beverage now known around the world as "PEPSICOLE" In 1902, he launched the Pepsi Cola Company in the back room of pharmacy, and applied to U.S. patient office for Trade Mark. The business began to grow and on June 16,1993, Pepsi-Cola trademark was officially registered with U.S. office. Bradham believed marketing would e the key to PEPSI-COLA prosperity and in his first year of business he spent $1900 on advertising when he sold 40,000 liters of syrup. In 1905 he built Pepsi fits bottling plant. Three more plants followed soon and in 1907, he was selling 50,000 liters year. Troubles started at the end of the First World War when Bradham over stocked sugar at high price, which subsequently dipped in 1920. By 1922, the company was insolvent by 1923, it went bankrupt and Bradham returned to pharmacy. In 1931, the company went bankrupt for the second time. At this time charless Groth, president of a giant candy company both the trademark. His success came when he offered a 12-ounce bottle at 5 cent while other colas were sold at the same price in 6 ounce bottles. In 1936, Pepsi has a $2 million net profit. Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew, slice and Mugvrands- Account for nearly one third of total soft drink sales in the United States, a consumer marker totaling about $56 billion. In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. Today Liption is the biggest selling ready to drink tea brand in the United States. Outside the United States, Pepsi-Cola Company's soft drink operations include the business of even- up International; Pepsi-Cola beverages are available in about 170 countries.

Pepsi-Cola began selling it products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products account for about a quarter of all soft drinks sold internationally. In addition to brands marketed in the United States, Major
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products include Mirinda and Pepsi Max.

Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottles and food service customers. This includes some of the world loved and most recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. In 1940, history was made when the first advertising jingle was broadcast nationally. The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was recorded into fifty-five languages. In 1964, Diet Pepsi was introduced.

THE BUSINESS
PepsiCo. Has a worldwide operation in 3 fields    Non Alcoholic beverage Snack Foods. Fruit Juices

Pepsi company profile
PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees.

PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees. The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International (PI). PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico. PAB includes PepsiCo Beverages North America and all Latin American beverage businesses. PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion.
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Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles. PepsiCo’s mission is “To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”

Shareholders
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Chicago and Swiss stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

Corporate Citizenship
At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: “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.” Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a worldacclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were designed by the world famous garden planner, Russell Page, and have been extended by François Goffinet. The
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grounds are open to the public, and a visitor's booth is in operation during the spring and summer.

PEPSICO BEVERAGES NORTH AMERICA (PBNA)

PepsiCo’s beverage business was founded 1898 by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PBNA has well known brand such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Season’s Best. PBNA manufactures and sells concentrate for some of these brands to licensed bottlers, who sell the branded products to independent distributors and retailers. PBNA provides advertising, marketing, sales and promotional support for its brands. This includes some of the world's best-loved and mostrecognized advertising. In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-to-drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks.

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from13

concentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the company’s flagship product. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. SoBe became a part of PBNA in 2001. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairybased drinks, exotic teas and other beverages with herbal ingredients. Gatorade thirst quencher sport drinks was acquired by The Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sport's drink. PepsiCo Beverages North America includes the United States and Canada.

LATIN AMERICA BEVERAGES
The Latin Americas Beverage business features a powerful suite of powerhouse brands and distinct products tailored for the market. Gatorade outsells the nearest competitor more than five to one and, in Sao Paulo---7UP H2Oh! --- a lightly carbonated, is dominating the competition in its lead market.

PepsiCo Americas Foods
FRITO-LAY NORTH AMERICA

PepsiCo's snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product – a corn chip – and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started a business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc.
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Major Frito-Lay products include Lay’s potato chips, Doritos flavored tortilla chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles potato chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, Lay’s Stax potato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito-Lay also sells a variety

of branded dips, Quaker Fruit & Oatmeal bars, Quaker Quakes corn and rice snacks, Grandma’s cookies, nuts and crackers. Frito-Lay North America includes Canada and the United States

QUAKER FOODS NORTH AMERICA

The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company. The figure of a man in Quaker clothes became the first

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registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today.

In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856.

Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemima Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. Gatorade was acquired in 1983. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001.

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LATIN AMERICA BEVERAGES
The Latin Americas Foods business includes operations in Brazil, Argentina, Colombia, Peru and Venezuela. This business continues to grow organically and through acquisitions like the Lucky snacks business in Brazil.

PEPSICO INTERNATIONAL

PepsiCo International includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. Pepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the 1950s. Today, PepsiCo beverages are available in more than 170 countries and territories. Brands include Aquafina, Gatorade and Tropicana. In addition to brands marketed in the United States, PepsiCo International brands include Mirinda, Seven-Up and many local brands.

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PepsiCo began its international snack food operations in 1966. Today, products are available in nearly 170 countries. Often PepsiCo snack food products are known by local names. These names include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes.

PepsiCo. Has a worldwide operation in 3 fields    Non Alcoholic beverage Snack Foods. Fruit Juices

PepsiCo India Holdings Private Limited
PepsiCo, the world leader in convenient foods and beverages, welcomes you to a community of over 157,000 employees spread over more than 200 countries and territories across the globe with annual revenues in excess of $33 billion. 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. Thus, we seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Company Facts
Company Name:
PepsiCo India Holdings Private Limited

Industry:
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Food & Beverage / Catering / Restaurant

Type of Company:

Private Limited Company, Foreign Based Company

Location:

DLF Corporate Park, S Block, Qutab Enclave, Phase III Gurgaon 122 002

History
Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCo entered India in 1989 and in the span of a little more than a decade, has grown to become the country’s largest selling soft drinks company as well as dominant player in the snack food segment (Frito-Lay is the leader in the branded potato chips market). To support the operations are the group’s 38 bottling plants in India, of which 16 are company owned and 22 are franchisee owned.

Product and Services
PepsiCo’s mission is to be the world’s premier consumer Products Company focused on convenient foods and beverages. The company seeks to produce healthy financial rewards to investors as it provides opportunities for growth and enrichment to its employees, business partners and the communities in which it operates. PepsiCo now has many global brands, which include: Pepsi-Cola, Diet Pepsi, Mountain Dew (Diet & Regular), Gatorade, Walkers, Lays Potato Chips, Doritos Tortilla Chips, Tropicana Pure Premium Orange Juice, 7-UP (Outside USA), Cheetos Cheese Flavoured Snacks, Quaker Cereals, Aquafina Bottled Water, Ruffles Potato Chips, Mirinda, Tostitos Tortilla Chips, Sierra Mist (Diet & Regular) and Fritos Corn Chips. Culture and Values

Our Guiding Principles:
We always strive to Care for customers, consumers and the world we live in. We are driven by an intense, competitive spirit in the marketplace, but we direct this spirit towards solutions that achieve a win for each of our constituents as well as a win for the corporation. 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.
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Balance short term and long term. We make decisions that hold both shortterm and long-term risks and benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable growth. Win with diversity and inclusion. We leverage a work environment that embraces people with diverse backgrounds, traits and different ways of thinking. This leads to innovation, the ability to identify new market opportunities, all of which helps develop new products and drives our ability to sustain our commitments to growth through empowered people. Respect others and succeed together. This company is built on individual excellence and personal accountability, but no one can achieve our goals by acting alone. We need great people who also have the capability of working together, whether in structured teams or informal collaboration. A spirit of fun, our respect for others and the value we put on teamwork make us a company people enjoy being part of, and this enables us to deliver world-class performance

PEPSI COLA INTERNATIONAL SRATEGY
Focus on Business growth  Target core brands  Satisfy Market Priorities

Pepsi's Global Strategy

When the "You're in the Pepsi Generation" advertising campaign launched in 1963, it may have been the first time a brand was marketed primarily with an association to its consumers' aspirational attitudes. A decidedly youth-oriented strategy, the campaign hoped to hook young Baby Boomers while they were still young. In 1984 Pepsi launched another long-running campaign, "The Choice of a New Generation," and in 1997 they debuted the "GeneratioNext" concept.

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The newest campaign slogan, introduced this year, is "More Happy," which definitely coincides with one concrete example of "more" in the packaging of Pepsi products today—more designs. Many more. At least 35 distinct design ideas will grace the packaging of Pepsi's cans and bottles this year alone, and this design strategy may continue indefinitely. Though not "generational" in word, the campaign certainly has a youthoriented feel with package designs, advertising, and websites that are fun and playful. PepsiCo worked closely with Peter Arnell and Arnell Group, based in New York City, to devise a comprehensive new strategy that would connect with Pepsi's core consumers. Arnell reinvented the Pepsi package as a meaningful and appealing communications tool for the latest generation of youth that are not overwhelmed by media, music, or digital distractions.

Experiental packaging
Arnell Group (a wholly-owned subsidiary of Omnicom Group) is a design and brand creation firm specializing in experiential design and product innovation, preferring to take complete branding and packaging projects from first concept to complete market solutions. Peter Arnell, currently chairman and chief creative officer of Arnell Group, formed the Arnell Group Innovation Lab in 1999 to place invention and innovation at the forefront in a collaborative laboratory for corporations interested in designing for next generation products and experiences. Arnell applied many of his philosophies in the Pepsi project.

Peter has taken a classic and turned it into a modern, innovative, and relevant marketing and communications tool," said Ron Coughlin, chief marketing officer, beverages, PepsiCo International. The new global look launched in February with eight new package designs across cans and bottles, and the campaign is unfolding in a similar manner overseas. The can designs roll out one at a time approximately three weeks apart to enhance the anticipation of discovery and to pique the interest of collectors.

Product innovation today must be driven by deep consumer meaning and connectivity," says Arnell. "It is less about unmet needs and more about giving people what they haven't asked for but are dying to have. Using design to turn packaging into personal consumer-powered media helps create the ultimate supportive and inspiring relationship between Pepsi and its youth audience."

Thinking globally

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The Pepsi can designs roll out one at a time, but the two-liter Pepsi bottles will have three or four designs out at any given time. Mike Doyle, creative director at Arnell Group, explains that there was a great depth of exploration and research that was conducted before even beginning to formulate a new Pepsi packaging strategy. PepsiCo and Arnell Group traveled extensively to emerging markets to find key consumer product drivers for youth cultures and to learn how the Pepsi brand was perceived in different countries. They found, somewhat surprisingly, that there were very few differences around the world in how consumers felt about Pepsi's fun, effervescent brand image. "The brand equity is really consistent," says James Miller, marketing director, Pepsi-Cola North America. They also found many consistencies in youth cultures around the world in how today's youth is preoccupied with newness, discovery, and personalization of their possessions. Miller describes the design campaign's goal as "sustainable discovery," where the consumer audience is constantly intrigued and engaged. Designers at Arnell Group created the dozens of new and vibrant designs with only a handful of blue and gray shades. Each design tells a story of sorts and each can design has a unique website address on the side of the can. The first one on the "Your Pepsi" can allows web users to design a digital billboard that will appear in Times Square, and one coming shortly will allow users to mix their own music online. "We redefined packaging as media in the marketplace for Pepsi," says Doyle. "It speaks to youth in their language." Doyle believes that the designs succeed because they are able to capture the audience's mind space. "The designs are reflecting back to the culture instead of talking to the culture or imposing on it."

Reassuringly Pepsi
Pepsi actually asked their loyal consumers what brand elements would have to remain so that they would be intuitively reassured that their favorite drinks were not changing and the brand they trusted was still essentially the same. Their answer was direct and consistent. Pepsi-lovers needed to see three elements for sure—the Pepsi "globe," the iconic Pepsi blue, and the familiar tilted Pepsi capital letters. Arnell Group updated the primary logo substantially and cleverly without really redesigning its key elements. The most recent logo design had the Pepsi wordmark on top of and slightly overlapping the iconic Pepsi redwhite-and-blue "globe." On the previous can design, the wordmark wrapped halfway around the can, and the globe was off-center. The new cans and bottles have un-bundled the word and globe, making the newly centered globe more of the hero, and the smaller Pepsi wordmark less prominent.

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Television ad campaigns are reinforcing the globe-centric approach by featuring a boulder-sized Pepsi globe in various settings careening to and fro like a pinball. In the ads and on the front of most of the new packages is the reassuring tag line: "Same Pepsi inside, new look outside." Miller explains that it is customary and important to reassure consumers for at least six months in situations like this. Miller also sees today's youth as demanding authenticity from the products they come into contact with in their day-to-day experiences. The new Pepsi design strategy is versatile because it can be authentic and stay current, and it could also make introducing special seasonal or regional designs more intriguing and less disruptive. "This is a new way of using packaging as media," explains Miller. "The consumer is looking for more variety and expecting more from their brands. They want to have a dialogue with their favorite brands."

SHAREHOLDERS
Pepsi-co.Inc. (Symbol: Pep) shares are traded principally the New York Stock Exchange in the United Stated. The company is also listed on the Amsterdam, Midwest, Swiss and Tokyo stock exchange. Pepsi Co has consistently paid cash dividends since the corporation was founded.

CORPORATE CITIZENSHIP
Pepsi Co. believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in its communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive-ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent, and funds to programs of national impact. Each division is responsible for its own growth program.

GROWTH GOALS
Set a winner's growth goals. If you act like no. 2, you will always be no.2

Employment
Hiring people who love to work and thrive on risk.

Target Core Brands
Put emphasis on the firmly established products and try to increase their market share.
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Market Priorities
Establish market priorities and work towards achieving the maximum good for the priorities.

PEPSI GLOBAL LOGO

While taking to consumers some years back, Pepsi carried one exercise consumers, "Take a piece of paper and draw what Pepsi means to you". Interestingly, a lot of consumers especially kids drew the Pepsi's globe. What is the globe? Well, its red, white and blue which says a lot of things. Secondly, It has an incredible balance, modem kids says it has some incredible yin and yang. Thirdly, it has a quality of complete harmony. Lastly, it speaks about openness and eternal youthfulness. The biggest thing about the globe is that it is 3 dimensional logo, which no other brand has.

In the Pepsi logo, blue colour has been underlined and used as a background colour. Blue colour. Blue colour is associated with cold and refreshment. Blue Jeans are a favorite piece of clothing for the youth's worldwide. Thus the colour hits the 2 dimensions:  It supports the product quality-Refreshment  It reinforces consumer's affection for their favorite things.
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Our Mission, Values and Guiding Principles

VISION
As we stand at the crossroads of the new millennium, it's time to eradicate our focus and energy single-mindedly to our Vision... The Vision to be the Best. And what is that vision? "To be the best consumer products company in the eyes of our suppliers, consumers, employees and shareholders."

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"To become truly global company, by continuing to build a competitive and profitable word wide refreshment beverage business."

The Pepsi challenge of the Millennium will be the test of the Best

The best in connecting with the customer ad the consumer, the best in marketing, the best in selling, the best in quality, the best in processes and the best in people and teamwork.

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Mission

We aspire to make PepsiCo the world’s premier consumer Products Company, focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity. The behaviors that will help us achieve our mission are articulated in our Values Statement.

Values
PepsiCo Values & Philosophy
Our Values & Philosophy are a reflection of the socially and environmentally responsible company

We are committed to delivering sustained growth through empowered people acting responsibly and building trust.
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What It Means Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done . Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own. Responsibility and Trust form the foundation for healthy growth. We hold ourselves both personally and corporately accountable for everything we do. We must earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by walking the talk and following through on our commitment to succeeding together.

Guiding Principles
We uphold our commitment with six guiding principles. We must always strive to: Care for our customers, our consumers and the world we live in. We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit toward solutions that benefit both our company and our constituents. Our success depends on a thorough understanding of our customers, consumers and communities. To foster this spirit of generosity, we go the extra mile to show we care. 2. Sell only products we can be proud of. The true test of our standards is our own ability to consume and personally endorse the products we sell. Without reservation. Our confidence helps ensure the quality of our products, from the moment we purchase ingredients to the moment it reaches the consumer's hand. 3. Speak with truth and candor. We tell the whole story, not just what's convenient to our individual goals. In addition to being clear, honest and accurate, we are responsible for ensuring our communications are understood. 4. Balance short term and long term. In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this balance helps sustain our growth and ensures our ideas and solutions are relevant both now and in the future. 5. Win with diversity and inclusion. We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings new perspectives into the workplace and encourages innovation, as well as the ability to identify new market opportunities. 6. Respect others and succeed together. Our mutual success depends on mutual respect, inside and outside the company. It requires people who are capable of working together as part of a team or informal collaboration. While our company is built on individual
1.
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excellence, we also recognize the importance and value of teamwork in turning our goals into accomplishments.

COMMITMENT
Diversity isn't just the right thing to do. It's the right thing to do for our business, and we're committed to making diversity and inclusion a way of life at PepsiCo. In our business, understanding different cultures is a major advantage. In fact, we view diversity as a key to our future. Our brands appeal to an extraordinarily diverse array of customers. And they are sold by an equally diverse group of retailers. To truly understand the needs of our customers and consumers -- and succeed in the marketplace -- PepsiCo must reflect that diversity in our employees, our suppliers and in everything we do. Offering a workplace where diversity is valued helps us build the top-quality workforce so crucial to our success -- by enabling us to attract and retain great people from a wide spectrum of backgrounds.

Community
We are committed to celebrating and supporting diversity in our community through our corporate giving and community programs. PepsiCo gives to the community through the PepsiCo Foundation, the PepsiCo Community Affairs Department and PepsiCo divisions. The PepsiCo Foundation and our operating divisions gave grants to more than 1,000 community organizations, of which a significant portion were organizations championing diversity. We also support organizations through gifts in-kind, such as product, premiums, printing, meeting arrangements, equipment donations, support of events, conventions, journals and meetings.

Customers
We are committed to marketing our products to all groups, treating all customers with respect, sensitivity and fairness, while providing some of the greatest products on earth. Early in its history -- as far back as the 1940s -- Pepsi-Cola recognized the importance of diversity. Pepsi pioneered targeted marketing and national lifestyle advertising featuring minorities. We developed education and sports programs spotlighting minorities. We partnered with many groups to create programs that contribute to minority communities. We sponsored major music tours by entertainers such as Tina Turner. We support minority media and interests. Over the years, our success has been recognized with numerous awards. Most importantly, our products are purchased and enjoyed by all groups of consumers.

Suppliers
We are committed to welcoming business partners who represent all people and purchasing quality products and services from a diverse supplier
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base. PepsiCo is a leader in seeking out and working with minority and women suppliers. In 2006, we surpassed $1 billion in spending with minority and women vendors. It is our policy to promote the utilization of eligible M/WBE vendors in all aspects of the company's business.

Employees and Careers

We are committed to hiring and retaining the best talent to fill each and every job in the corporation. And we are equally committed to fostering an atmosphere of caring, open communication and candor among our employees, where we treat each other with respect. PepsiCo has been nationally recognized as one of the top places for women and minorities to work. We were one of the first companies to begin hiring minorities in professional positions, as far back as the 1940s. We were the first Fortune 500 company to have an African-American vice president. That commitment to diversity continues today. We place a great deal of emphasis on personal integrity and believe long-term results, from real accomplishments, are the only fair way to judge performance. We respect individual differences in culture, ethnicity and color. PepsiCo is committed to equal opportunity for all employees and applicants. We are committed to providing a workplace free from all forms of discrimination. We respect the right of individuals to achieve professional and personal balance in their lives. PepsiCo's commitment is underlined by our current diversity initiatives. They have been formulated to ensure that we attain our core value of diversity as a competitive advantage.

 Dedicated executives for managing diversity within our operating divisions.  Multi-year strategic plans for diversity are developed with the same vigor and goal setting process as other business issues. Goals include diverse recruitment, improved retention and fostering a more inclusive culture.  External Diversity Advisory Boards consisting of educators, politicians, practitioners and customers to advise PepsiCo senior management on a variety of issues relating to diverse audiences.  Annual employee performance reviews incorporating inclusion-related goals for all managers.  Mandatory annual Affirmative Action Planning process.
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 Bi-annual organizational health survey incorporating diversity questions and requiring analysis at the minority and female level. Senior management is held accountable for results.  Corporate-sponsored multi-level program for training employees to work and manage in an inclusive environment.  Employee networks to mentor and support diverse employees.

SUSTAINABLE ADVANTAGE

Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace. Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace: 1. 2. 3. Big, muscular brands; Proven ability to innovate and create differentiated products; and Powerful go-to-market systems.

Making it all work are our extraordinarily talented and dedicated people. When we take these competitive advantages and invest in them with dollars generated from top-line growth and cost-saving initiatives, we sustain a value cycle for our shareholders. In essence, investing in innovation fuels the building of our brands. This in turn drives top-line growth. Dollars from that top-line growth are strategically reinvested back into new products and other innovation, along with cost-savings projects. Thus, the cycle continues.

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Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo. Mrs.
Nooyi leads one of the world’s largest convenient food and beverage companies, with 2007 annual revenues of more than $39 billion. The company operates in nearly 200 countries, and employs more than 185,000 people worldwide. Its principal businesses include: Frito-Lay snacks, PepsiCola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annualretailsales. PepsiCo’s commitment to sustainable growth, defined by Mrs. Nooyi as Performance with Purpose is focused on generating healthy financial returns while giving back to communities the company serves. This includes meeting consumer needs for a spectrum of convenient foods and beverages, replenishing the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and

inclusive environment that recruits and retains world-class talent. The company is listed on the Dow Jones North America 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 over a decade and was the primary architect of 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), acquiring Tropicana, and the merger with Quaker Oats that brought the vital Quaker and Gatorade businesses to PepsiCo. Recently, she has been driving critical cross-business initiatives to enhance operations and enable PepsiCo to meet the changing needs of consumers and retailers. Prior to becoming CEO, Mrs. Nooyi served as President and Chief Financial Officer since 2001, when she was also named to PepsiCo's board of directors. In this position, she was responsible for PepsiCo’s 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.
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She was part of the top management team responsible for the company's U.S. business as well as its worldwide industrial businesses, generating about one-third 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 in 1986 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 Federal Reserve Bank of New York, the International Rescue Committee and Lincoln Center for the Performing Arts in New York City. She is a Successor Fellow of Yale Corporation, member of the Board of Trustees of Eisenhower Fellowships, a member of the Executive Committee of the Trilateral Commission and currently serves as Chairman of the US-India Business Council. She holds a BS from Madras Christian College in Madras, an MBA from the Indian Institute of Management in Calcutta and a Master of Public and Private Management from Yale University. Mrs. Nooyi is married and has two daughters. 27-April-08 Massimo F. d’Amore was named Chief Executive Officer of PepsiCo Americas Beverages in November 2007. PepsiCo Americas Beverages has a beverage portfolio including Pepsi-Cola North America, Gatorade, Tropicana, all of PepsiCo’s Latin American beverage businesses, and its North America PepsiCo Food Service division. Previously, Mr. d’Amore was Executive Vice President Commercial for PepsiCo International, a position he assumed in November, 2005, after serving as President, Latin America Region for 4 years and SVP, Corporate Strategy & Development for PepsiCo for 2 years. Mr. d’Amore was also Senior Vice President and Chief Marketing Officer for Pepsi-Cola International (PCI), a position he assumed in 1998 and Business Unit General Manager (BUGM), Turkey/Central Asia since 1999. Prior to PepsiCo, Mr. d’Amore had a 15-year international career with Procter & Gamble in Operations, Marketing and General Management in Europe and North Africa. Mr. d’Amore is a native of Italy and an engineering graduate from the Swiss Polytechnic Institute in Lausanne, where he also earned a Master of Science Degree. He has lived in Italy, Switzerland, Germany, Belgium, Morocco, France and for the last 13 years in the U.S. He is fluent in English, Italian and French; and has a working command of Spanish and German. He has three children and resides in Westchester. PepsiCo is one of the world’s largest convenient food and beverage companies, with 2007 revenues of more than $39 billion. The company operates in nearly 200 countries, and employs more than 185,000 people
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worldwide. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual retail sales.

PepsiCo India’s commitment to Performance with Purpose
Performance with Purpose articulates PepsiCo India's belief that its businesses are intrinsically connected to the community and world that surrounds it. Performance with Purpose is about delivering more than financial performance, it’s about staying committed to continuously giving back to the community and helping enrich society. To deliver on this commitment, PepsiCo continues to build on its strong foundation of achievements and scale up its initiatives while focusing on the following 4 critical areas that are linked to its business and where it can have the most impact.

Replenishing water

PepsiCo India continues to replenish water and aims to achieve positive water balance by 2009, which means it is committed to saving and recharging more water than it uses in its beverage plants

Waste to Wealth

PepsiCo India continues to convert Waste to Wealth, to make cities cleaner. This award winning initiative has established Zero Solid Waste centres that benefit more than 2,00,000 community members throughout the country

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Partnership with Farmers

PepsiCo India’s Agri-partnerships with farmers help more than 15,000 farmers across the country earn more...

Healthy Kids

PepsiCo India stays committed to the health and well-being of kids. It will continue to provide children with a diverse, healthful and fun portfolio, while simultaneously encouraging active lifestyle by expanding its Get Active programme for kids, especially for school going children .

THE INDIAN SOFT DRINK HISTORY
Gold Spot is considered as the first branded soft drink in India it was introduced by Parle in early forties. Coca-Cola was the foreign soft drink to be introduced in Indian markets. The Coca-Cola Company entered India in the early fifties, when four bottling plants were set up at Mumbai, Kolkotta, Delhi, and Kanpur. Coca-Cola enjoyed a good beginning and dominated the market. Parle exports private limited, the major domestic player, and later in 1970 introduced “Limca” lemon soft drink. Before Limca’s they had attentively introduced “cola Pepino” which was soon withdrawn from the market following the confrontation with Coca- Cola. In July 1977 Coca-Cola left India following a public dispute over shareholding Structure and imports permits. Coca-Cola left a big gap, which was filled by several companies who came forward pushing different brands in market. Parle Products introduced their Cola “Thumps Up”, pure drinks introduced “Double Seven” “Thrill”, “Rush”, “Sprint”. At the same time various regional soft brands played an independent role in their respective territories like “Duke”, “mangola”.

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After coke was asked to leave India Pepsi began to lay plans to enter this huge market. Pepsi started its operations in April 1989 for beverages snack foods and export business. In 1990 first Pepsi Cola was produced in India. In the next year 1991, production of Mirinda and 7up started, the production of Slice Teem, Fountain Pepsi started in 1993. Coca-Cola came back again in India in October 1993 and was launched in Agra.It joined hands with Parle Exports Pvt. Ltd. To enter India and gradually took over the same company. The nineties also saw a new foreign entrant Cadbury Schweppes that rolled out Canada dry and Crush in metropolitan cities. Pepsi entered the cloudy lemon market category by launching its Mirinda lemon in 1998. In May 1999 a notification, presented the prevention of food adulteration (fourth amendment) Rules 1999, allowed the use of the artificial Sweeteners, aspartame and acesulfame potassium in The formulation of soft drinks-which was what made the entry of Diet Pepsi and Diet Coke. Coca-Cola also rolled out its popular clear lemon drink Sprite in India in the same year 1999. Soft drinks can trace their history back to the mineral water found in springs. Soft drinks can trace their history back to the mineral water found in natural springs. Bathing in natural springs has long been considered a healthy thing to do; and mineral water was said to have curative powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind the bubbles in natural mineral water. The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the Compagnie de Limonadiers of Paris were granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.

Joseph Priestley
In 1767, the first drinkable man-made glass of carbonated water was created by Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced in large amounts.

John Mathews
In 1810, the first United States patent was issued for the "means of mass manufacture of imitation mineral waters" to Simons and Rundell of Charleston, South Carolina. However, carbonated beverages did not achieve great popularity in America until 1832, when John Mathews invented his apparatus for the making carbonated water. John Mathews then massmanufactured his apparatus for sale to soda fountain owners.

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Health Properties of Mineral Water
The drinking of either natural or artificial mineral water was considered a healthy practice. The American pharmacists selling mineral waters began to add medicinal and flavorful herbs to unflavored mineral water. They used birch bark, dandelion, sarsaparilla, and fruit extracts. Some historians consider that the first flavored carbonated soft drink was that made in 1807 by Doctor Philip Syng Physick of Philadelphia. Early American pharmacies with soda fountains became a popular part of culture. The customers soon wanted to take their "health" drinks home with them and a soft drink bottling industry grew from consumer demand.

The Soft Drink Bottling Industry
Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are under a lot of pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter, a Baltimore machine shop operator. It was the first very successful method of keeping the bubbles in the bottle.

Automatic Production of Glass Bottles
In 1899, the first patent was issued for a glass-blowing machine for the automatic production of glass bottles. Earlier glass bottles had all been handblown. Four years later, the new bottle-blowing machine was in operation. It was first operated by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few years, glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.

Ninety years after the invention of what become one of the most favored drinks globally in 1988. Pepsi entered India flanged with heavy resources and riding the winds of change of a newly opened economy. First, Pepsi has only franchise unit. Pepsi gave his concentrate to small factory and they make beverage. In 1988, Pepsi set up its offices in India. In this company Pepsi operates as PEPSI Foods Pepsi Co. India Holdings and Pepsi India marketing. The mission was to change the tastes and life style of a common Indian, who identified soft drinks and beverages as a few available cold drinks, squashes and concentrates. When it came to a refreshing drink conservative consumers would back to traditional nimboo pani, jaljeeram lassi etc. Although India has a per capita consumption as low as 3 per person as
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compared to 400 in USm India has one of the largest number of potential consumers in a world with a population of an arab, Every Indian guzzles 27 bottles of soft drink every year, an increase of one bottle per capita consumption would mean stating 900 bottles extra. India soft drink is of worth RS. 1800 crores with annual growth at the rate of20% to 25%.

All the activities of Pepsi Foods Pepsi Co, India Holdings and Pepsi India Marketing Company are controlled by business Unit (BU) located at GURGAON. This BU is divided into various marketing units (MU's). All except the North and Market Units have common borders with states comprising them. The market units demarcate the areas, which are "Coboised" i.e.Have Company owned bottling operations(COBO). In these units there are company owned bottling plants while in other areas the operations are run by a franchisee these areas are referred to as Fanchisee Owned Bottling Operations (FOBO'S) and some and in some others Joint Venture operate. COBO - In the COBO, the company has total control of the decisions and implementations undertaken, but for this the company has to invest its own money. FOBO - The FOBO’S are independent to take their own marketing and operational decisions with no major interference form the company. The FOBO's are supplied the concentrate from the company and they have to run the show, there after. Pepsi maintains ownership of the trademarks and is primarily responsible for ownership in a local bottling operation. This helps Pepsi maintain strong trademark on the other party's resource and expertise. The PCI workflow concentrates on Selling, Making and Delivering Pepsi- Cola. Pepsi -Cola is a company with a "Low margin, high volume business" Pepsi Co. deals in the carbonated Soft Drinks (CSD's) Market. CSD's fall in two categories-Cola and flavors. Coals concentrate on Pepsi whereas flavors deal with orange and Lemon. In India the flavors are Mirinda Orange and Lime. Slice is a fruit Juice concentrate based Drink. Starting out in 1989, with that name of "Lehar Pepsi", the company has grown leaps and bounds ever since with competition increasing with reentry of coke a few years ago. Thanks to an early lead and a better understanding of the market, India remains amounts the handful of markets worldwide where Pepsi is ahead of its archival Coke. Despite being the global Pepsi has build its success on meeting out the Indian customer's needs. Pepsi has made its brand synchronize with localized events and traditions. Pepsi maintained its top of mind awareness with roadside signage and reminders. The partner type relationship with bottles,
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FOBOs as well as COBOs cover most of the company adequacy.

One of the strongest weapons in Pepsi's armory is the flexibility it has empowered its people with. Ht Pepsi every employee, may be a manager of a salesman, have an authority to take whatever steps he or she feels will make the consumers aware of the brand and increase its consumption. Thus Pepsi believed in establishing and nurturing creditability of the salesman and making the joint commitment to grow business in accounts, All these factors together led to a high froth in the Indian market and constantly increasing market share.

Product wise comparison of Pepsi with competitor CocaCola


• • • • • •

Pepsi Pepsi Aha Mirinda ( orange+lemon+apple) Teem Soda Slice 7UP Mountain dew Diet Pepsi Aquafina(mineral water)

Coke, Thumps Up Fanta(orange),Limca Maaja Sprite Kinley(soda) Diet Coke Kinley (mineral water)

Distribution Channel and strategies
“Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption”

Philip Kotler

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Distribution (Place) Strategies
● Product availability where and when customers want them. ● Involves all activities from raw materials to finished products Basic Channels of Distribution

Manufacturers/products

Place

Agents/brokers Wholesalers/distributors Retailers Retailers

Consumers and organizational end users
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  e.g. perishables, bulky products, non-standard items, products requiring installation & maintenance

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 ratation of glass crates. The company evaluates its distributors at the end of the year and makes
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plans for the next year. Company fixes the targets for each distributor according to market size, last year’s sales, potential growth assumption based on deposit of empties and installation of coolers at outlets. Distributors are awarded with a fair margin of RS. 10 per crate for their service. This margin could be increased for the sale above the targets, company offers are met with distributors before appointing them. Distributor complying with many schemes and contests for its customers for pushing different brands and giving various services. Company also offers many gifts like, briefcase, and handbags. T-shirts, caps etc.to encourage the distributors. If distributor does not agree with the conditions of these agreement company may reduce the area of distributor or may even terminate the relationship.

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 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.

CUSTOMER SERVICE DEPARTMENT
Customer Service is a support function to sales and marketing Department and is concerned with effectively dealing with all customer complaints This starts from: Ensuring Receipt, Documentation and Follow Up of all complaints to be take care of within a specified time in order to achieve the ensure Customer (retailer) distributor and consumer Satisfaction. The Customer complains directly through phone or pager or through the sales team visiting them. Types of Complaints handled are related to: • • • • • Consumer Signage and Schemes Supply and Service Quality of Product Cooling Equipment A Customer Service executive who in turn co-ordinates with five Customer
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Service Representative positioned in the five sales divisions in UP-Lucknow, Kanpur, Gorakhpur, LUCKNOW and Bareilly heads customer service department at the unit office. These Customer Service Representative handle customer service functions in their respective territories.

MARKETING DEPARTMENT
Marketing department is mainly concerned with promoting "TOM" i.e.” Top of the Mind Awareness for Pepsi as it is a consumer oriented organization. It performs the following functions to build consumer and customer preference.

Signage: This includes putting up of glow gings, banners, wall paintings,
hoardings, kiosks etc.

Promotions:

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. All these activities are carried out by the unit office with the help of guidelines issued by the BU in the form of an annual marketing calendar and budget. Marketing department at the Unit Office is headed by a Marketing Manager and has three Marketing Executives. The marketing department co ordinates with the five sale division in UP-Lucknow, Kanpur, LUCKNOW, Goarakhpur and Bareilly to implements the various marketing programs

ADVERTISING & PUBLICITY

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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 file stars Shahrukh Khan, Amitabh Bacchan etc. & Cricket stars Sachin Tendulkar, V.V.S Laxman, Harbhajan Singh etc. Hindustan Thompsom Associates, the big gets advertising agency of India has the account of Pepsi Co. is known for its board cast advertising but it also spends a lot in 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. LUCKNOW territory has assigned two local advertising agencies R.D. Associates and Krishna for its territorial advertising.

Research Methodology
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INTRODUCTION Business research can be defined as a systematic and objective process of gathering, recording and analyzing data that provides information to guide business decisions. It is used either to understand market trends, to find the optimal marketing mix, to devise effective HR policies, or to find the best investment options. In the present fast track business environment marked by cutthroat competition, many organizations rely on business research to gain a competitive advantage and greater market share. A good research study helps an organization understand processes, products, customers, markets and competition and to develop policies, strategies, and tactics that are most likely to succeed.

ROLE OF BUSINESS RESEARCH IN DECISION-MAKING
For effective planning and implementation of business decisions, accurate information about the internal and external business environments is of primary importance. The key objective of business research is to provide accurate, relevant, and timely information to the top management, so that they can make effective decisions. The business decision-making process in an organization going through the following key interrelated stages:     Problem/opportunity Identification Problem/opportunity prioritization and selection Problem/opportunity resolution Implementing the selected course of action

Business Research helps the management in each of the stages by providing useful and timely information

RESEARCH OBJECTIVE
1-

Study the distribution network of Pepsi

To comparatively analyse the stock of Pepsi and coke with retailers of Pepsi.
2-

3-

To study the retailers satisfaction.

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4-

To find out the way to enhance the sale of Pepsi.

RESEARCH DESIGN
A research design is the arrangement of conditioned for collection and analysis of data in a manner that aims to combine relevance to the research purpose which economy in procedure. Main characteristics of research design can be summarized in two words12Anticipation Specification

My research design is “DISCRIPTIVE RESEARCH DESIGN” In my research, researcher has conducted a market Survey of the Anti Pepsi Outlets in Lucknow area.

TYPE OF RESEARCH:
The basic types of research are as follows :

1.

Descriptive research:

The major purpose of this research is description of the state of affairs as it exist at present.

2.

Analytical Research:

In this research, the researcher has to use facts or information already available these to make, and analyze these to make a critical evaluation of the material.

3.

Applied research:

It aims and finding a solution for an immediate problem facing a society or an industry/business organization.

4.

Fundamental research:

It mainly concerned with generalization & with the formulation of a theory

5.

Quantitative Research:

It is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity.
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6.

Qualitative Research:

It is concerned with the qualitative phenomenon, i.e., phenomena relating to or involving or king.

7.

Conceptual Research:

It is related to some abstract ideas or theory.

8.

Empirical Research:

It is data- based research, coming with a conclusions which are Capable of being verified by the observation and experiment.

9.

Diagnostic Research:

Such a research fallow case –study method or in depth approaches to reach the basic casual relation.

10. Exploratory Research:
The objective of this research is the development of hypothesis rather than their testing.

Census Method

In this analysis Marketer have used census method instead of Sampling Method. Marketer have surveyed all retailers which do not sale Pepsi or sell very less and come under Shukla Sales Distributor at Sitapur Road , Lucknow.

STEPS IN THE RESEARCH PROCESS
1.

Identifying & Defining Problem/ Opportunity

2.

Planning the Research Design

3.

Selecting a Research Method
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4.

Selecting the Sampling Procedure

5.

Data Collection

6.

Evaluating the Data

7.

Preparing and presenting the Research Report

Source of Information
In our research we have made use of both primary and secondary data. PRIMARY DATA:  Schedule  Personal interview  Telephonic interaction  e-mail SECONDARY DATA:  Articles published in different magazines.  Article published in internet.  Internet.

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SWOT Analysis
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors

rn In t e

al

S S W W O O T T

Things the company does well. Things the company does well.

Things the company does not do well. Things the company does not do well. Conditions in the external environment Conditions in the external environment that favor strengths. that favor strengths. Conditions in the external environment Conditions in the external environment that do not relate to existing strengths or that do not relate to existing strengths or favor areas of current weakness. favor areas of current weakness.

te Ex

rn

al

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Strengths Strengths and and Weaknesses Weaknesses (INTERNAL) (INTERNAL)

Production Costs Marketing Skills Employee Capabilities Financial Resources Available Technology Company/Brand Image

Opportunities Opportunities And And Threats Threats (EXTERNAL) (EXTERNAL)

Social Demographic Economic Technological Political/Legal Competitive

Strengths49

1. Believe on the customer satisfaction. 2. Pepsi has a broader product line and outstanding reputation. 3. Record revenues and increasing market share 4. Number one maker of snacks, such as corn chips and potato chips 5. Great brands, strong distribution, innovative capabilities 6. popular with younger people, wide array of brands 7. has a big share , popular, well know by costumers, hier celebrities for promotion 8. company has good market share in Lucknow. 9. Company has a Brand Equity among Consumers.

Weaknesses1No provision for regular replacement of damage of bottles. 2Distribution is not proper so we can say not justified . 3not as popular with older crowd, not associated with key restaurants (i.e. coke / McDonalds', while Pepsi / Pizza Hut)

Opportunities1. 2. 3. 4. 5. water related products, non-soft drinks, energy drinks Increase the coverage areas. Increase market share by improving service Increase the target consumer every year. Company can go for more Monopoly counters .

ThreatsDisributors are reducing in Lucknow city. constant competition with coke. Olympic branding from coke. other drink companies are increasing competition. Decline in market reputation due to ineffectiveness & declaring service. 5. Aggressive marketing strategies of Coke.
1. 2. 3. 4.

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Project Analysis
Project
“Analysis of Anti Pepsi Behavior of the Retail Outlets” Description
The trainee was required to find out those outlets which are either not selling Pepsi or selling in very less amount. Region for the project was LUCKNOW region. This project was aimed at finding out the shops, which were not promoting Pepsi and selling competitor brands. It was also aimed at knowing the reason for anti Pepsi behavior of outlets in the region, their requirements from company and willingness to sell Pepsi brands.

Purpose
Main purpose for this project was to make management aware of the total no. Of outlets in their region which were not selling Pepsi. It was also to plan their new course of action keeping in mind the current market position of Pepsi as well as of Coke. This was viewing the market share of Pepsi in comparison of Coke. This report gives information to management about the outlets uncovered by Pepsi and their requirements to the company. The marketing of its brand is excellent and is very successful to reach its brand in LUCKNOW. Overall the market of PepsiCo brand is good in comparison with Coke. There are very few outlets which are not selling Pepsi brands.

DETAILS OF THE SURVEY
The trainee was required to visit all the outlets in the specified area of his distributor, which was told to us by the CE concerned. We were required to be given the route map of the specified area. The area was to thoroughly survey without leaving any of the outlets. Initially the survey was to start with the route vehicle of the distributor of that area. Two days had to be devoted with the route vehicle and noting down the name of the outlets and other particulars where ever their route vehicle visited the outlets. It was to get familiarized with the area. The next couple of days had to be surveyed individually in the same area trying to find out those outlets in that area which was not attended by the route vehicle. This was how the whole survey was to be conducted.

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The main aim of this survey was to find out those outlets which are either new or remain unnoticed/unattended by the route vehicle or where the Pepsi products were not reaching. For Pepsi these outlets is going to be the main focus of the survey. It was to know the exact strength of outlets of the area which were not selling Pepsi or selling very less. The trainee was required to collect the following information from each outlet he surveyed. • • • • • • • • • Name of the outlets Address of the outlets Status of the outlet Cooling Equipment Sale of the outlet Brands on sale Requirement of outlet Willingness to sale pepsi. Reason for anti Pepsi

Name of the outlets: The trainee was to note down the name of the outlet visited Address of the outlet: Complete address of the outlets was to be noted by the trainee Sale of the outlet Sale of the outlet was to be noted on per day basis. Brands on sale Check out the brands available at the outlet. Requirement of outlets Ask what the shopkeeper wants from the Company. Willingness to sale Pepsi To know if shopkeeper want to sell Pepsi or not.

Reason for anti Pepsi To know why shopkeeper is not selling/selling less the Pepsi brands.
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Status of the outlet: The status of the outlet was to be enquired of from the outlet owner and also by observation. Status here meant the nature of the outlet. This was to know weather the outlet sold only Pepsi products or only Coke products or either both of these. It will help to know the nature of market in that area.

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COMPARATIVE SHARE
QUESTION-1
Pepsi Coke Both Total retailer

ANALYSIS

AND

PEPSI

STOCK

which company’s stock do you have?
14 70 14 70

70
INTERPRETATION:-

60 50 40 30 20
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According to my study, 14 retailers have Pepsi stock, 70 have Coke stock and 14 have both.

14

QUESTION- 2 Which company’s VISI you have?
PEPSI COKE BOTH TOTAL 5 69 5 70

70 60 50
INTERPRETATION :According to my study of anti Pepsi outlets, 69 retailers have Coke VISI, 5 have Pepsi visi and 5 have both Pepsi and coke visi.

40

30 20
55

10

5

QUESTION-3
YES NO T0TAL

Do you need Pepsi VISI?
50 20 70

Pepsi visi requirement

NO

20 NO YES

YES

50

0

10

20

30

40

50

INTERPRETATION:According to my study, 50 retailers need Pepsi VISI.

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QUESTION-4 YES NO TOTAL

Do you want to sell Pepsi? 15 55 70

Want to sell Pepsi

15; 21%

yes no

55; 79%

INTERPRETATION:According to my study, 15 retailers says yes and 55 anti Pepsi retailers don’t want to sell Pepsi.

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QUESTION- 5 YES NO TOTAL

Did you sell Pepsi before? 58 12 70

sold Pepsi before

60 50 40 30 20 10 0 12 58

yes

no

INTERPRETATION:According to my study, 58 retailers have sold Pepsi earlier and now converted into coke and 12 have never sold Pepsi.

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QUESTION- 6 YES NO TOTAL

Is Pepsi providing right service or not? 22 48 70

SERVICE CHART

22, 31%

yes no

48, 69%

INTERPRETATION:According to my study 22 retailers said yes and 48 said no.

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QUESTION- 7 Average Good Very good

What is the daily sale of your outlet? 48 16 06

Average=1-3 pt.; Good=3-5 pt.; Very good=more than 5 pt. daily in season.

sale of the outlet

6, 9% 16, 23% average good 48, 68% very good

INTERPRETATION:According to my study, 48 retailershave average sale, 16 have good sale and 06 retailors have very good sale of soft drink.

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QUESTION- 8 What is the reason of being anti Pepsi?

Visi not provided Tie up with Coke/ coke approached first Pepsi service not suits Schemes are not as good as Coke’s TOTAL

25 17 16 12 70

Visi not provided 12, 17% 25, 36% Tie up with Coke/ coke approached first Pepsi service not suits 17, 24% Schemes are not as good as Coke’s

16, 23%

INTERPRETATION:According to my study, 25 retailers don’t sell Pepsi due to absence of Pepsi visi, 17 retailers due to coke tie ups and first approach, 16 due to bad service and 12 due to not so good schemes.

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FINDINGS:Shop owners have not been properly communicated about the Pepsi terms & conditions of providing cooling equipment. They asked us as how they could get cooling equipment from the company. Distributor is not very active regarding it.

SUGGESTIONS:
Pepsi can enhance its program of providing cooling equipment to more no. Of outlet owner which will compel them to keep only the Pepsi Products in these coolers/freezers.

IMPACT
It will increase the popularity &brand image of Pepsi in the eyes of outlet owners, which is equally important for increase sale. It will help the shopkeepers in providing chilled Pepsi products to the ultimate customers all the time by increasing their capacity of chilling.

STATUS
Status tells us the exact nature of outlets. It tells weather the outlets have only PEPSI products or only coke products or a mix of both. By studying this one can identify those shops, which has the potential and capacity of becoming the exclusive Pepsi outlet. This will help in two ways: 1. It will increase the sale and market strength of Pepsi. 2. It will simultaneously sustain the sale of its competitor products. The Anti Pepsi Outlets surveyed in LUCKNOW = 70 Exclusive PEPSI outlets = 0 Exclusive COKE outlets = 56 Outlets having both types of soft drinks = 14

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Sta
60
Hence among 70 anti Pepsi outlets, 14 keep both Coke and Pepsi but Pepsi in very less amount.

Suggestion

50 40 30 20 10 0

If proper attention is given then many of the shops in these areas have the capacity & will to become the exclusive Pepsi outlets. In my View those shops which have a good regular sale of 5 to 10 cases per day should be targeted to convert them in exclusive outlets.

Over All Findings of the Survey
Survey of Anti Pepsi outlets shows that there are considerable no. of outlets which are not selling Pepsi. • There are various reasons of anti Pepsi behavior of retailers as:• Large no. of retailers want visi coolers. • Company does not provide schemes properly. • Company does not provide discount properly. • Some retailers want large size of Pepsi VISI. • Some retailers are not satisfied with service of Pepsi so they are selling coke. • All brands of Pepsi are not available so retailers suffers with shortage of stock. • The no. of Pepsi is high in comparison of coke but some retailers prefer to sale coke because of shortage of Pepsi and poor distribution channel. • Retailers need display & schemes so that they can increase the sale of Pepsi. • Retailers need the sign boards to attract customers. • The distribution is not so proper or we can say not satisfactory.

0

Pepsi

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• Many retailers want to tie up with Pepsi but company don’t approach them at right time. • In some area Pepsi enjoying monopoly and somewhere coke. • Retailers complain about lower margin on cold drinks due to rising electricity bills and other expenses that are incurred. • Route agents and salesman do not cover their routes properly. • Retailers complaints about shortages during summer season and complained that route agents and salesman do not visit their outlets during the summer season. • Some Outlets owners are very angry with the companies performance • Our product start off late as result other brand reach the retailers &capture the markets.

Suggestion Regarding Improvement

CE needs to personally contact with retailers who help in knowing the activities of the distributors as well as help in Promoting the business. • It should focus its attention to the untapped market where it can considerably increase its market share. • Distributors should from time to time take the pain of finding out the requirement of retailers and the problem they are facing. • The process of visi installation should be made easy. • There should attention be paid to the repairing of visi out of order. • Pepsi should work hard more to increase its market share in some areas like Cantt. Road, Hazrat Ganj etc. • Advertisement and publicity in the untapped market by way of signage, racks, paintings, banners, hoarding etc. should be expanded. • Margin to retailers should be taken care off and may be possible ought to be increased without increasing the overall price. • Distributors should check the working of route agents or salesman on regular basis. • Shortages of the product during the summer season if possible should be reduced. It communicates bad message among the retailers as well as the consumers. • Signages & merchandise should be installed against the sale performance of the outlets as well as the need of the market. • Survey by the top officials should be made in the un tapped areas to access the real situation and should be done as a surprise visit instead of planned visit.

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LIMITATIONS OF STUDY
It is well know fact that constraint and limitations are bound to be present in any study do this also has some limitation as:The survey has been conducted only in few areas of Lucknow due to limited time. 2It is very difficult to make people understand the significance of conducting survey. 3Lack of retailer’s interest to answer the questions is also an important limitation. 4Lack of knowledge of area has affected the research. 5the information given by the client may be false and biased.
1-

CONCLUSON
The summer training project was focused on “Analysis of Anti Pepsi

Behavior of the Retail Outlets”
Pepsi is superior brand than coca-cola but from some time its market share has come down due to various reasons. In India the company is running with very fast speed. The popularity of Pepsi is better than coke. It has bright future. It has democratic and communicative style of functioning.

Conclusion has been drawn:1- proper approach to the retailers at the time of tie ups is required. 2-The retailer’s satisfaction is low. 4- Company does not provide schemes properly. 5- No provision for regular replacement of damage of bottles.

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6- Many complains of retailers does not listen by the company. 7- Many retailers want monopoly but company does not provide.

QUESTIONNAIRE FOR RETAILERS

Name of outlet: Address:

Name of the owner: Phone:

QUESTION-1

which company’s stock do you have?

a) Pepsi

b) Coke

c) Both

QUESTION- 2 Which company’s VISI you have?

a) Pepsi
QUESTION-3

b) Coke
Do you need Pepsi VISI?

c) Both

a) Yes
QUESTION-4

b) No
Do you want to sell Pepsi?

a) Yes
QUESTION- 5

b) No
Did you sell Pepsi before?

a) Yes
QUESTION- 6

b) No
Is Pepsi providing right service or not?

a) Yes
QUESTION- 7

b) No
What is the daily sale of your outlet?

a) Average

QUESTION- 8 What is the reason of being anti Pepsi? a) Visi not provided

b) Good

c) Very good

b) Tie up with Coke/ coke approached first
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c) Pepsi services not suits

d) Schemes are not as good as Coke’s

BIBLOGRAPHY
Books:
Marketing Management – “Philip Kotler” Research Methodology – “C.R. Kothari”

Web Sites
www.google.com www.pepsico.com www.coca-cola.com www.ask.com www.wikipedia.org

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