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Project Report: Submitted in Partial Fulfillment of PGDM
Project Report: Submitted in Partial Fulfillment of PGDM
ON
A study on SALES & DISTRIBUTION CHANNEL AND
PROMOTION of PepsiCo with reference to
SMV BEVERAGES JAMSHEDPUR
(FRANCHISEE OF PEPSICO INDIA).
IN
JAMSHEDPUR
Submitted in partial fulfillment of PGDM
DECLARATION
I NITESH KUMAR hereby declare that the project titled SALES &
DISTRIBUTION AND PROMOTION is an original work carried out under the
guidance of PROF. R. RAVI KISHORE. The report submitted is a bonafide
work of my own efforts and has not been submitted to any institute or
published before.
Name:
Signature:
MUKTI RANI
Personnel & Admin. Officer
Date:
Place:
Signature
Date:
ACKNOWLEDGEMENT
4
Date:
Place:
EXECUTIVE SUMMARY
5
leads
that
qualifying
for
an
offering
and
formulating
to
INDEX
6
Chapter. no.
Content
Page No.
Chapter 1
Introduction
9-14
Chapter 2
Industry Profile
16-20
Company Profile
21-28
Literature Review
29
Chapter 3
Research methodology
31-41
Chapter 4
Data collection
43-55
Analysis& Interpretation
56-67
Chapter 5
Bibliography
Findings
69
Recommendations
70
Conclusions
71
72
Websites referred
Annexure
Questionnaire
74-76
CHAPTER: -1
INTRODUCTION
7
SALES
A sale is the act of selling a product or service in return for money or other
compensation. It is an act of completion of a commercial activity.
DISTRIBUTION CHANNEL
My field of study will look into upon the following aspects of distribution
and selling strategy and market-research.
The main purpose of trade is to supply goods to the consumers living in far off
places. As goods and services move from producer to consumer they
may
have
to
pass
The middlemen
Thus,
channel
of
distribution is the route or path along which goods move from producers
to ultimate consumers.
The route taken by goods as they move from producer to consumer is
known as Channel of Distribution. From the above diagram it can be found
that there is just one direct channel i.e. from producer to the consumer.
DISTRIBUTOR
RETAILER
CONSUMER
(2) PRODUCER
CONSUMER
(3) PRODUCER
DISTRIBUTOR
(1) PRODUCER
DISTRIBUTOR
CONSUMER
CONSUMER
STOCKIST
RETAILER
P
D
R
RI
I
O
S
D
T
U
R
CI
E
B
R
U
T
E
R
The route normally used by FMCG companies especially by the soft drink
companies is the second one i.e. (ii). In this case the wholesaler is usually
called distributor.
If the producer is producing goods on a large scale, it may not be
possible for him to sell goods directly to consumers. As such, he sells goods
through middlemen. These middlemen may be wholesalers or retailer s. A
wholesaler is a person who buys goods in large quantities from producers;
where as a retailer
DISTRIBUTOR
Distributors are one of the important middlemen in the channel of distribution
who deals with the goods in bulk quantity. They buy goods in bulk from the
10
producers and sell them in relatively smaller quantities to the retailers. In some
cases they also sell goods directly to the consumers if the quantity to be
purchased is more. They usually deal with a limited variety of items and also in
a specific line of product, like iron and steel, textiles, paper, electrical
appliances, etc. Let us know about the characteristics of distributors.
CHARACTERISTICS OF DISTRIBUTOR
The followings are the characteristics of distributors:
I.
II.
III.
quantities.
They sell different varieties of a particular line of product. For example,
a distributor who deals with soft drinks is expected to keep all varieties
of soft drinks viz. 200ml, 250ml, 300ml, 500ml, 600ml, 1ltr, 1.2ltr, 2ltr
IV.
V.
VI.
VII.
products.
Distributors need large amount of capital to be invested in his business.
They generally provide credit facility to retailers.
He also provides financial assistance to the producers or
manufacturers.
FUNCTIONS OF DISTRIBUTORS
Let us now know what the functions of distributors are.
(a) Collection of goods: A distributor collects goods from manufacturers or
producers in large quantities.
11
(b) Storage of goods: A distributor collects the goods and stores them
safely
in warehouses, till they are sold out. Perishable goods like fruits,
Promotion
Promotion is a key ingredient in marketing campaigns consists of a collection
of incentive tools, mostly short term, designed to stimulate quicker or greater
purchase of particular products or services by customers.
Personnel
selling
Advertisin
g
Sales
promotion
Public
relation
Direct selling
Advertisement
Advertising is a fascinating and important aspect of marketing. Advertising
appeals to all irrespective of age, caste, sex, borders etc. Words which can
be associated
persuasive,
with advertising
boring,
and
are
fun,
humor,
warm,
entertaining,
Facilitating Institutions
Government
Competition
Advertising
agencies
Advertiser
Media
Market and Consumer
Behavior
THE FIVE MS of ADVERTISING
MESSAGE
What
message
should be
sent?
MONEY
MISSION
What are
the
advertisin
How much
can be
spent?
MEASUREME
NT
How should
result be
evaluated?
MEDIA
What media
should be
used?
A very important
part of
advertising
is
to decode
the
medium
of
advertising and how much to spend on each time. For advertisement is takes
help of print media, electric media, pop materials etc.
Objectives :
To know the distribution strategy adapted by the organization
To arrange the products of Pepsi in visi-cooler as per the guidelines of
13
PepsiCo.
To know the response of the dealer regarding the products of PepsiCo.
Consumers buy what they see in the retailing. i.e. to attract consumers
by displaying their favorite brands or to help the consumers in finding
their favorite soft drink flavor or brand.
To attract consumers by displaying different brands.
To find out the factors that influences the consumers preference of a
particular flavor of soft drink.
To find out the market share of PepsiCo with respect to coke in terms of
WARM STOCK,CHILLED STOCK AND EMPTY STOCK .
To motivate the retailers for effective utilization of visi-cooler for
selling PepsiCo brands.
To analyze the problems of retailers and customers.
How many outlets are there which are covered with glow sign board,
hanger and flexi board.
14
CHAPTER:-2
INDUSTRY PROFILE
COMPANY PROFILE
ABOUT FMCG
The Fast Moving Consumer Goods (FMCG), are the products that are sold
quickly at relatively low cost. FMCG industry is also called as Consumer
15
Frequent purchase
Low involvement
16
Low price
High volume
Low contribution margins
Extensive distribution network
High stock turnover
COMPANY PROFILE:
17
Type
Founded
1965
Headquarters
Key people
Industry
Products
Net income
Employees
297,000(2011)
Revenue
GROUP OF COMPANIES:
About PepsiCo:
PepsiCo is a world leader in convenient snacks, food and beverages with
revenues of more than US$60.504billion and over 297,000 employees.
18
PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the
Punjab government- owned
Voltas India Limited. This joint venture marketed and sold Lehar Pepsi
until
1991, when the use of foreign brands was allowed; PepsiCo bought out its
partners and ended the joint venture in 1994. Others claim that firstly Pepsi
was banned from import in India, in 1970, for having refused to release the
list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on
the market shortly afterwards. These controversies are a reminder of "India's
sometimes acrimonious relationship with huge multinational companies."
Indeed, some argue that PepsiCo and The Coca- Cola Company have "been
major targets in part because they are well-known foreign companies that draw
plenty of attention." PepsiCo has grown to become one of the countrys leading
food and beverage companies. One of the largest multinational investors in
the country, PepsiCo has established a business which aims to serve the
long term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S. $1 billion since
the company was established in the country. PepsiCo provides direct and
indirect employment to 297,000 people including suppliers and distributors.
PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including
19
Pepsi Foods Ltd, Frito Lay India, and Tropicana Beverages Company. The
company, through its subsidiaries manufactures, bottles, and exports fruit
juices and carbonated beverages and packaged snacks such as Lays, Ruffles,
Fritos, and Cheetos. PepsiCo India is based in Gurgaon, India.
PepsiCo nourishes consumers with a range of products from treats to
healthy eats that deliver joy as well as nutrition and always, good taste.
PepsiCo Indias expansive portfolio includes iconic refreshment beverages
Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such
as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking
water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice
based drinks Tropicana Nectars, Tropicana Twister, Slice, and the new brand
Nimbooz by 7up with real lemon juice. Local brands Lehar Evervess Soda,
Dukes Lemonade and Mangola add to the diverse range of brands.
Launches
Packaged
Nimbu Paani
'Nimbooz by 7Up' The product, with real lemon juice, no fizz and no
artificial
flavors,
will
returnable glass bottles, 350 ml PET and 200 ml tetra packs, priced at INR 10,
INR 15 and INR 10 respectively.
Jamshedpur and producing Pepsi range of bottled soft drinks, viz. Pepsi,
Mirinda, 7up, Mountain Dew, Slice and Soda and it has now become a
house hold word in the state of Jharkhand.
The previous name of SMV was STEEL CITY BEVERAGES, but in March
1999 steel city beverage taken over by Mr. S.K. Jaipuria from Mr. N.K. Kamani
along with Rushab Marketing Company. He established another plant in the
same name of SMV Beverages Pvt. Ltd. And increase the production from his
new plant is 600 bottles per minute. Simultaneously a new market came in
name of Hyderabad Marketing Company, which is creating the needs of whole
Jharkhand state. The company symbolizes self reliance in technology and
ranked as the best bottling company of the country in terms of quality,
efficiency, and productivity. Till 1998 it was under its chairperson Smt Kokum
Kamani
ENVIRONMENT SCANNING:
The process by which organization monitors their relevant environment
to identify opportunities and threats affecting their business are known as
environment scanning.
21
The external environment in which S.M.V. Beverages Pvt. Ltd. exists consists
of a bewildering variety of factors. These factors (may also be termed
as influences) are events, trends, issues, and expectation of different
interested groups. These factors are explained below.
Events are important and specific occurrences taking place in different
environment sectors.
Trends are the general tendencies or the courses of action along which
events takes place. Issues are the current concern that arises in response to
events and trends.
Expectations are the demands made by interested groups in the light of their
concern for issues. By monitoring the environment
though environmental
scanning, the S.M.V. BEVERAGES Pvt. Ltd. consider s the impact of the
different events, trends, issues, and expectation
management
process.
Since
the
environment
on
its
strategic
facing organization
is
S.M.V.
BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with
specific environmental issues from time to time.
Such studies may be conducted, for instance, when S.M.V. BEVERAGES Pvt.
Ltd. has to undertake special projects, evaluate existing strategies, or devise
new strategies. Changes due to unforeseen development may also be
investigated with regard to their impact on the organization. Today S.M.V.
22
Beverages Pvt. Ltd. stands as a proud monument the great visionary its
founder Late D.N. Kamani and
strides
forth
towards
progress
and
ORGANISATIONAL STRUCTURE
23
BCM
OAE
AON
AR
GD
IO
NF
GD
DI
IR
RE
EC
CT
TO
OR
R
MB
O A
A N
R A
D G
I O N
FG
IR
F I N A P N L C A EP N H A T M R M A M N A A N G A E G R E R
A/C ASSISTANT
H.R EXECUTIVE
COORDINATOR
A/C CLERK ASSIST.
WORKER
H.R CLERK
ASSIST.
HOS
T.D.M
M.E.M
M.D.M
Q.C
A.D.C
C.E
SENIOR TECHNICIAN
TECHNICIAN
M.D.C EXECUTIVE
M.E
P.S.R
24
COMPETITOR
Pepsi has a tough competition with Coca Cola while it faces a little
competition with the local producers like RC Cola etc. The local producers
hardly affect the sales of Pepsi in the market. There are different types of
competitor in the market. Some of them in which our product lines are
discussed below:
Strong Vs Weak:
Coca Cola and Pepsi are strong competitors. Pepsi is the market leader and
Coca Cola is its competitor. The Pepsi makes defense strategies so that it can
maintain its position in the market. While Coca Cola is a challenger and it
makes attack strategies so that it can become the market leader. RC Cola is
25
weak competitor of pepsi. Pepsi is the market leader and RC Cola is the
follower. Pepsi is not in direct competition with the RC Cola. It means that RC
Cola has little effect on the sales of Pepsi. Pepsi Cola is situated in an industry that is
dominated by two competitors, Coca-Cola and of course themselves.
Jamshedpur.
Here I want to share my experience of visiting the production unit of
Pepsi and knowledge I gained after seeing the production processes of
different brands of Pepsi.
But before going into the deep I would like to thank Mr. Dhananjay Kumar
(M.E) , who changed the hottest day into my dream day and also to all staffs of
S.M.V. Beverages Pvt. Ltd. Jamshedpur for guiding me during this visit and
sharing their vast knowledge and experience with me .
Pepsi production process:
Any cold drinks (soft drinks) generally contains
Water
Sugar
Flavors or fruit pulp
Chemicals
CO2 gas (in carbonated soft drinks)
The below four ingredients are added with the first ingredient i.e. water and
26
Water
Sugar
Salt
Co2 gas
PRODUCTION PROCESS
The production process being carried on the SMV Beverages (Jamshedpur) in
for batch type. The entire process is almost automatic and it requires huge
amount of water and electricity. The production process is divided into
following steps:
1. Water Treatment.
2. Bottle Washing.
3. Syrup Preparation.
4. Acid room.
5. Filling.
6. Packaging
7. Shipping.
packaging
for
recycling
and
developing
28
Literature review
There is a project on sales distribution, promotion and a consumer survey,
which has been done by me for SMV BREVELAGES. LTD, JAMESHEDPUR
(A franchise of Pepsi India Ltd). Sales distribution and the market research
has the aim of building mutually satisfied long term relation with key parties
customer , suppliers, distributors in order to earn and retain their business.
Jamshedpur
To analyze the problem of retailer and customer
To analyze customer satisfaction of Pepsi as compared to coke
29
CHAPTER:-3
RESERCH METHODOLOGY
MARKETING AVTIVITIES
MARKETING MIX
RESEARCH METHODOLOGY
Introduction
30
The main aim of this research study is to analyze the soft drink preferences
and drinking habits of soft drink of people of different age, sex, education and
income groups in the city. Also find out the avg. expenditure (weekly). The
research will determine the factors which influence the population to prefer a
certain soft drink.
Objective
To find the Soft drink preferences of the people based on their age,
Purpose:
The purpose of the project is to gather information about the true
market position of the soft drink market in the Jamshedpur division. Its main
objective is to find out how strong the relationship between PepsiCO. and the
customer. what are the problems faced by retailer & customer.
Methodology
Research design:
31
32
KEY AREAS
The key area of my summer training was PEPSICO STRATEGY OF SALES &
DISTRIBUTION AND PROMOTION .The Company had divided his retail
outlets on the basis of area wise and character wise.
Each of the division is having mainly three types of outlets.
AREA WISE
according to the company the whole training area was divided into three parts.
INNER CIRCLE: - These are the main selling point of a company. In inner
circle we mainly consider those selling point or retailers shops which
come under the main market area.
OUTER CIRCLE: - These areas are adjacent to the main market area,
which is a mixture of residential areas and market areas. In these areas we
mainly talk about those retailers shops, which are place d in the residential
areas and quite away from the main market..
OUTSKIRTS: - These areas are quite away from the main city and the
main market, or the interior areas of the towns.
CHARACTER WISE: - Again there is a division of outlets on the basis of
characters (type of work done by the retailers) and there are again three types
of outlets.
CONVENIENCE OUTLET:
beetle shops, stationary shop, medical shop and such type of other shops.
GROCERY OUTLETS: - These types of outlets include grocery stores which
indulge in selling of foods and related things used in the home.
EATERY: - It includes restaurants, fast food joints, hotels etc.
MARKETING ACTIVITIES
INTRODUCTION:
Marketing needs a framework that begins and ends with the customer.
33
of marketing
MARKETING MIX
PRODUCT
PLACE
TARGET
MARKET
PRICE
PROMOTION
The entire market in this case is divided into three parts viz.:
Route market
Home market
34
At work market
ROUTE MARKET
Outlets coming under this market cater to the needs of those customers who
are engaged in shopping, eating out in restraints, going to and from work, in
amusement center s etc. In simpler words this market is what we call the
bazaar.
HOME MARKET
Outlets coming under this market cater to the needs of those customers
who buy soft drinks predominantly for home consumption either by glass
bottles or pet bottles. The shops targeted under this category are those
which are located inside residential complex or are located nearer to the
residential areas. These shops predominantly sell pet bottles.
AT WORK MARKET
Outlets coming under this market cater to the needs of those customers who
are working in offices, factories etc. i.e., the outlets targeted are the canteens
mainly. The soft drink being a FMCG has a wider and scattered market.
Thus to enable concentrated effort of marketing activities in different scattered
market, for effectively setting the entire market is broken into the following
segments. Route market outlet in this market caters to these people who are
engaged in shopping, eating outgoing to and from work, in amusement centers
etc. Home
market:
outlets
in
this
market
cater
to
people
buying
and water. During the process manufacturing first it sterilized, then it is packed.
But its other product are preparing by some fruit and other carbonate mix
water etc.
Name of product
Pepsi
Pepsi
Pepsi
Pepsi
Mirinda
Mirinda
Mirinda
Mirinda
Slice
Slice
Slice
Slice
Slice
7-UP
7-UP
7-UP
7-UP
Mountain Dew
Mountain Dew
Mountain Dew
Mountain Dew
Soda
Product Line:
Quantity
200ml
300 ml
600 ml
1.2lt. , 2.0lt.
200ml
300 ml
600 ml
1.2lt. 2.0lt.
200ml
250ml
300ml
500ml
1200ml
200ml
300 ml
600 ml
1.2lt. , 2.0lt.
200ml
300 ml
600 ml
1.2lt. , 2.0lt.
300ml , 500ml
Color
Burnt-sugar
Burnt-sugar
Burnt-sugar
Burnt-sugar
Sunset
Sunset
Sunset
Sunset
Yellow
Yellow
Yellow
Yellow
Yellow
Colorless
Colorless
Colorless
Colorless
Colorless
Colorless
Colorless
Colorless
Colorless
Flavor
Cola
Cola
Cola
Cola
Orange
Orange
Orange
Orange
Mango
Mango
Mango
Mango
Mango
Lime
Lime
Lime
Lime
Lemon
Lemon
Lemon
Lemon
.
PACKING:The packet of Pepsi is different types like 200ml. to 2lt. it is only on Pepsi
product and other product are same but only Slice soft drinks is slightly
different of the other produce. It packaging size is like 250ml, 500ml, and 1.2lt
sizes this types.
SERVICES:Any kind of damage, spoiled or expired are return back if necessary.
B.
PRICE:-
Pepsi products are 7 types and its name is Pepsi, Mirinda, Mountain Dew,
36
Slice, 7 up, Nimbooz and Aquafina. All these products are different types of
size and different packaging. If we will see its price of product are same except
only Slice and Aquafina.
LITRE:- 200m.l
600
Rs:-
12.00
27
38 55
8/9/10.00
13.00
16
25
65/53
C.
Premium
Volume
Price/case
Pepsi
200ml
166
Pepsi
Soda
300ml
300ml/600ml
282
174/336
Slice
Slice
Mountain Dew
Aquafina
Mountain Dew
500ml/250ml
1200ml
600ml/200ml
1lt.
2lt.(53,65)
632/282
615
656/212
158
442,540
Pepsi
Pepsi
Mountain Dew
600ml/1lt.
2lt.(53,65)
200ml
608/418
442,540
212
Slice
250ml
282
PROMOTION:-
Promotional activities play a key role in the entire marketing effort being carried
out by S.M.V. Beverages which are in sync with those of PepsiCo India.
These promotional activities generate more sales as well as create a good
image of the product in the mind of the customer.
The promotional tools used by SMV Beverages for its marketing activities
are
distributor, retailers and customer. For example: buy one case, get 2 or 3
PEPSI, some new prizes, etc
2
advertising and how much to spend on each medium. The different mediums
used by Pepsi are:
TV
Hoarding
Newspaper/Magazines
is providing its scheme offer is different types. In the summer times (March to
July) and the other one is August to October.
1. There are more than 50 channels we have seen advertisement
program of Pepsi and other products of the soft drinks on the T.V and
other areas. So that whichever channels we are watching, Pepsi was always
present.
2. It covers almost all channels and important programmers of these
channels.
3. Posters, stickers, leaflets are given in different languages to
make understand different people.
1. PUBLIC RELATIONS : In spite of all these things, Pepsi also launch special gift packages with
corresponding design introduced for the occasion both Pepsi and other
products at many locations across the country.
2. DIRECT MARKETING :Direct marketing is done with the help of sales personnel, who takes order
from the house and deliver the stocks.
3. SALES FORCE :Under each distribution, sales personnel are appointed who looks over the
sales of Pepsi and problems regarding the sales.
D.
PLACE: 39
In India there are different types of franchise are having in the country. One is
having in the 8 s m.v beverages Pvt. Ltd. Adityapur Jamshedpur Jharkhand.
This franchise of Pepsi co. is distributing in side of the Orissa, Jharkhand,
Bihar in different areas.
E.
F.
G.
CHAPTER:-4
41
EDS
PLAN-O-GRAM
SWOT ANALYSIS
Outlet name
Address of Outlet
Channel(category of Outlet)
Which type Outlet(PI,CCX, Mix)
Visi cooler condition
Prominent Location(yes or no)
Charged (How much charge the visi cooler with products)
Volume
Area
42
Location(Jamshedpur)
Baridih
Bistupur
Sonari
Jugsalai
Mango
Toyladungri
Telco
Pursudih
Adityapur
sakchi
No. of outlets
18
24
21
47
29
23
22
24
19
16
Distribution Effectiveness:
From the outlet survey we can find out the number of outlets and the
stock and the other details. Non buyers also be located. Activation of non
buyers should be done immediately. With the above knowledge on can
increase the number of routes to get increased dealers coverage and
hence also increased more effective sales. Also details of this have help to
check upon the route selling of salesman, so that we can control them by
closely monitoring their performance.
How to increase distribution effectiveness:
After the above survey, the company can improve the distribution
network.
Immediately activeness of non- buyers.
Improve the dealer coverage.
Increase the realignment of routes.
Better control thorough route card.
Availability of goods on time.
Therefore, Every Dealer Survey is important keeping in mind that
distribution forms the major marketing activity in our industry and also
43
that through these survey one acquires knowledge of the market. It should
also be added here that continuous dealer surveys are required because of the
following reasons.
_ As our turn over increase we require skills to tackle problem and dealer
survey help in acquiring first hand as to use the skills effectively.
_
With our increased growth, investment of money are increased for various
Location of outlet.
The type of outlet.
Number of dealer who keep Pepsi and coca cola and comparing
popular.
Gather the information about scheme which is given by company to
retailers.
The marketing inputs with respect to:i.
Advertising
ii.
Visi-cooler size
iii.
Customer service
Though PepsiCo has entered the market only 19 years ago but it
has captured a big market share and ends the monopoly of coca cola,
which has ruled for 13 years. This survey enables us to know:
How many exclusive outlets of PepsiCo, Coca cola and how many
44
about the sales every outlets. And this report is useful for planning or taking
decision about how much amount should be spent for sales promotion for each
outlet.
From these aspects we can know how good we are in the market place
and those areas where we are lacking. It also helped to found that in some
place or areas where only the competitor brand available, then by the help of
survey we can find out the reason behind non availability of PepsiCo product
in that specific area. The knowledge of case stock will indicate our case- in
trade and that of competitors. This will also indicate our case velocity which
helps to plan our bottle as well as whether our distribution is effective or not. If
our case stock is low then I may decide upon a case stocking
campaign. Therefore, appropriate marketing strategies can be worked out
depending upon the findings.
PLAN- O- GRAM
PEPSICO STRATEGY
PepsiCo provides visi coolers (Refrigerators fitted with glass door)
to Pepsi outlets, so that the retailers can provide chilled Pepsi drinks to
consumers.
This also increases the sale of Pepsi products. Visi coolers are
of various sizes for instance 165 , 200 , 220 , 300 , 320 , 400 , 440 , 650 ,
1200 and so on. Plan-O-Gram is the process of filling of visi cooler with
the Pepsi, and other Pepsi products i.e. 7UP, Mirinda, Slice, Mountain
Dew, Aquafina, and Tropicana fruit juice according to the sequence
prescribed by PepsiCo.
45
Objectives :
To know the distribution strategy adapted by the organization
To arrange the products of Pepsi in visi-cooler as per the guidelines of
PepsiCo.
To know the response of the dealer regarding the products of PepsiCo.
Consumers buy what they see in the retailing. i.e. to attract consumers
by displaying their favorite brands or to help the consumers in finding
their favorite soft drink flavor or brand.
To attract consumers by displaying different brands.
To find out the factors that influences the consumers preference of a
particular flavor of soft drink.
To find out the market share of PepsiCo with respect to coke in terms of
WARM STOCK,CHILLED STOCK AND EMPTY STOCK .
To motivate the retailers for effective utilization of visi-cooler for
selling PepsiCo brands.
To analyse the problems of retailers and customers.
How many outlets are there which are covered with glow sign board,
46
P-O-G
47
PepsiCo visicooler
Pic-1
pic-2
48
Pic-3
pic-4
Procedure
Visi-cooler plan- o-gram (P-O- G) includes the following three processes.
I.
II.
III.
l.
and other substitute and competitors products like fruity, jumpin, chilled milk,
curd , and coco cola products in the visi cooler. These products grab the
places of Pepsi, again this increases the selling of substitute products. Here
visi pure means, removing all items except Pepsi from the pepsi visi-cooler.
And visi cleaning is simply Cleaning of visi cooler with a duster . Visi cleaning
helps to keep the products clean and also attract the consumers.
ll.
Charging:
49
This process involves the transfer of Pepsi from warm stock to cold
stock. Or in other words charging is filling of visi-cooler with PepsiCo products
from the stock available at the outlet. This helps in following ways,
Bottles/cans/tetra packets are first cleaned with a clean duster and dusts are
removed and then filled into the visi-cooler.
lll.
Planogram:
This
is
process
which
involves
sequentially
placing
of
shelve.
Step 6: Repeat this process.
Step 7: Charge the products according to the prescribed sequence of P-O-
G.
Step 8: Ensure that cooler is 100% charged.
50
products also (non pepsi products) in the visi cooler provided by Pepsico and
they do not show any interest to follow the plan o gram.
retailers
to
follow
plan o gram,
PepsiCo
So to motivate
provides
attractive
4.
Some outlets use to sale only few flavors or brands of PepsiCo and not all.
Zone is one of such skim, which was available during that period of time for
the retailers.
Outlets, where only few flavors or brands of PepsiCo are sold not all the
flavors, we placed one available flavor in each shelve of the cooler. e.g.
Beer-Bar, restaurants, where only three brands of PepsiCo are sold; which
are Pepsi, 7Up, Soda and water.
After P-O-G, the assignment was to take the orders of products e.g; Pepsi,
Mirinda, 7UP, slice, mountain dew etc in many area of Jamshedpur. Areas
name:
Parsudih
Karandih
Jamco
Baridih
Bhalubasa
SWOT ANALYSIS
In order to get clear understanding of the position of Diet Pepsi in the various
markets we did a SWOT analysis from the data obtained from the survey
and the various retailer interviews
STRENGTHS
PACKAGING AND PRICING :- Pepsi has the advantage of having provided
the same kind of health based carbonated drink the Slim Diet Pepsi Can
which in comparison to the Diet coke is a much more attractive offering
because it is slim sleek equally healthy and way cheaper.
DISTRIBUTION :- As already mentioned Pepsi India has one strongest and
most efficient sales and distribution networks not only in India but also
throughout the globe. PepsiCo in India is the relationship the company and its
constituents have with the channel partners. Also the recently introduced
retailer benefit schemes such as the gold card membership and other
free gifts and offerings not only motivate the retailers but also helped us
52
create visibility for the Slim Diet Can range in a profound. The experience of
working with people who welcome us with a smile rather than a frown will
always be remembered.
NON-CARBONATED:- The non-carbonated segment is dominated by Pepsi;
Tropicana is the market leader in fruit juices. In the mineral water segment,
Aquafina clearly outsells Kinley without any fuss.
Bottling PepsiCo has the advantage of being in partnership with the largest
bottler in India, the R K Jaipuria Group. RKJ Group controls almost 65% of the
bottling operations of PepsiCo in India. At times this is also seen as a Pepsi
controls almost 60% market share in the Cola segment.
WEAKNESS:
SECOND MOVER DISADVANTAGE:- Diet Pepsi Cola does have the
first mover advantage which Diet Coke has and this may prove to be a major
shortcoming also in the Agra Market no Extensive efforts have been made to
popularize it.
Brand On a comparative scale Diet Coke proves to have a better
brand image in customers mind than. This compels to incur extra expenditure
in Advertising, Promotions and Sponsorship.
MCDONALDS:- This is one of the most important reason why Diet
Coke outsells Pepsi worldwide and specially in the United States. Similarly, in
India Diet Pepsi may suffers in sales because of institutional sales. Now Pepsi
is trying very to bridge this gap in the near future.
EXPENDITURE:-
the biggest and the most expensive stars in the country as its brand
ambassadors and has spend heavily on advertising which has affected its
balance sheet.
Visi-coolers:- At presently this is one the biggest problems faced by
Pepsi. Pepsi is not able to get refrigerators in India so they have to
import it other namely Sri Lanka, Mauritius etc. Because of this, retailers
53
are facing lot of problems in visi-coolers. They are not able to get new
refrigerators, replacements for old ones, even the repair work takes lot of time
because at times even the spares are not available on time.
OPPORTUNITIES
Lowest Per Capita Consumption: - Even after almost decades of
presence in the market, there are growth opportunities for Diet Pepsi in India
as here the per capita consumption of carbonated beverages is one of the
lowest in the world.
Health Based: apart from its Juice Based drinks portfolio Pepsi can Use
the Slim Diet can to the maximum by promoting it as a health drink at Cheaper
prices.
THREATS:
NGOs:- NGOs like CSE can seriously hamper the sales and prospects
of companies operating in this industry. This happened during the pesticide
controversy involving both coke and Pepsi.
HEALTH:- Growing health awareness among people and some of ill
effects of carbonated beverages have pursued many people to switch
over to non-carbonated beverages that can seriously hamper the longterm prospects of the entire Industry and not Pepsi.
ENVIRONMENT:-
Environmental
concerns
are
often
raised
ANALYSIS
Following are the data acquired from questionnaire by taking 100 samples:
b. Coca-cola
c. Both
d. other
Brand
PepsiCo
Coca-cola
Both
Other
Sample
40
24
31
5
55
Brand
Other; 5%
PepsiCo; 40%
Both; 31%
Coca-cola; 24%
INTERPRETATION:
From the above data, I can conclude that around 40% of people like PepsiCo
products, 24% coke products, 31% both and 5% others products in
Jamshedpur.
Brand
PepsiCo
Coca-cola
Both
b. Coca-cola
c. Both
Sample
51
24
25
56
Brand
Both; 25%
PepsiCo; 51%
Coca-cola; 24%
INTERPRETATION:
From the above data, I can easily get to the conclusion that PepsiCo provides
better facilities in Jamshedpur.
Q.3 How many carats of Pepsi and Coca-cola you sell per day
in summer?
a. 0-1
b. 1-2
c. 2-3
d. More than 3
Sample
12
24
57
2-3
More than 3
26
38
40
35
30
2-3; 26
1-2; 24
25
20
15
0-1; 12
10
5
0
0-1
1-2
2-3
More than 3
INTERPRETATION :
From above data, It can be said that 38% of retailers sell more than 3 crates
in one day.
b. Coca-cola
c. own
d. Both
Visi-cooler
PepsiCo
Coca-cola
Sample
35
29
58
Both
Own
28
8
Visi-cooler
40
35
PepsiCo; 35
Coca-cola; 29
30
Both; 28
25
20
15
Own; 8
10
5
0
PepsiCo
Coca-cola
Both
Own
INTERPRETATION :
From the above data it is clear that 35 % of retailers use PepsiCo visi-cooler
in their outlets.
b. Coca-cola
59
Company
PepsiCo
Coca-cola
Sample
80
20
Company
Coca-cola; 20%
PepsiCo; 80%
INTERPRETATION:
From the above data, it is clear that 80% of retailers get schemes from
PepsiCo.
b. Cola-based
c. Milk-based
60
Base
Juice-based
Cola-based
Milk-based
Customers preference
32
54
14
Customer's preference
60
50
40
30
20
10
0
Cola-based; 54
Juice-based; 32
Milk-based; 14
Juice-based
Cola-based
Milk-based
INTERPRETATION :
From the above data, it is clear that 54% customers like to prefer cola-based
drink and 32% juice base and 14% milk base.
b) Business
c) Petty traders
d) Self employed
e) Supervisors/Clerical
h) Housewife
Type of customer
Student
Business
Petty traders
Self employed
Supervisors/Clerical
Junior Executive Level
Middle Senior Level
Housewife
Sample
39
15
12
4
7
13
8
2
Sample
45 Student; 39
40
35
30
25
20
Business; 15
Junior Executive Level; 13
Petty traders; 12
15
Middle Senior Level; 8
Supervisors/Clerical;
7
10
Self employed; 4
Housewife; 2
5
0
INTERPRETATION :
From the above data, it is clear that 39% of students like soft-drinks , 15% of
business person like soft-drinks and 2% housewives.
62
Drink
Packaged
Unpackaged
Customers preference
85
15
Customer's preference
Unpackaged; 15%
Packaged; 85%
INTERPRETATION :
From the above data it s clear that 85% of retailers prefer to buy packaged
drinks.
Flavour is pre-determined?
Yes
Choose on availability
Choose by coldness
Customers preference
64
10
26
Customer's preference
70
Yes; 64
60
50
40
30
Choose by coldness; 26
20
Choose on availability; 10
10
0
Yes
Choose on availability
Choose by coldness
INTERPRETATION :
From the above data, it is clear that 64% of customers have predetermined
flavor in their minds before having drinks.
Coldness
Availability
Advertisement
Taste/Quality of food
Retailer suggestion
Offer
64
Basis
Coldness
Availability
Advertisement
Taste/Quality of food
Retailer suggestion
Offer
Customers preference
6
23
41
8
10
12
Customer's preference
45
40
35
30
25
20
15
10
5
0
Advertisement; 41
Availability; 23
Coldness; 6
Offer; 12
Retailer
Taste/Quality of
food; 8suggestion; 10
INTERPRETATION :
From the above data, it is clear that majority of the customers around 41% of
customers are influenced by an advertisement before buying a particular
flavor of soft-drinks
Less than 50
50-99
100-199
More than 200
Amount (Rs.)
Less than 50
50-99
100-199
More than 200
21
9
45
40
35
30
50-99; 27
25
100-199; 21
20
15
More than 200; 9
10
5
0
Less than 50
50-99
100-199
INTERPRETATION:
From the above data, it is clear that 9% of customers spend more than 200
Rs. On soft-drinks items and 43% of customers spend less than 50 Rs. On
these items.
Q.12 Was the outlet maintaining the glow sign board, hanger
and flexi board effectively?
a. YES
Boards
YES
NO
b. NO
Sample
75
25
66
BOARD
NO; 25%
YES; 75%
INTERPRETATION:
From the above data, Graph is representing the results for outlets maintaining
glow sign board, hanger and flexi board.
67
CHAPTER:-5
FINDINGS
RECOMMANDATIONS
CONCLUSION
FINDINGS :
Pepsi has 54% market share compared to coca cola in Jamshedpur,
but they are very close to each other.
From Coca Cola products, Thumbs-up and Sprite are market leaders
and in Pepsi brand, Slice is the no.1 selling product.
The dealers want a soft strategy for replacement of leakage bottle.
According to retailers Pepsi gives more schemes and gifts compared
to coca cola.
68
Most of the dealers want glow sign board, hanger and flexi board and
visi cooler for long time.
Over the visit to market what I observed is the counters which has visi
coolers in front of the store gives more sales.
In my area of working Pepsi has more execlusive counters than coke
but no. of mix outlet is the maximum.
PSR is not well trained compare to coke.
No any regular visit in retailor shop for filling the order.
As per the study some dealers want to sell the only pepsiCo product.
RECOMMANDATIONS
The following recommandation that can be implemented to increase
consumer satisfaction and profitability of the company.
Distributions of product should improved during summer as this is the peak
time of the business.
The PSR should be trained and to be courteous with the retailer.
P-O-G should be done reguraly as it pushes sales of the product as well
as gives more visibility of the product.
69
CONCLUSION
Everything in this world is made to utilize properly but should be reached to
the proper person or to the proper utilize areas. Otherwise the value added to
those things become in vein. As there is a proverb that says, FAR FROM
EYE, FAR FROM HEART.
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The marketing activities of SMV beverages are good but there is a need of
some promotional activities. Beside this there is certain more conclusions
which are as follows:
Pepsi has got far better position and giving the tough competition to its
competitor coke.
Company directly supply the product to retailers.
. The distribution system creates value added to all most all products.
Thus marketing role plays a very important role in achieving the objectives of
an organization. According to Drucker, Both the market and the
distribution chennels are often more crucial than the product. They are
primary and the product is secondary. In an economy like that of India, where
marginal shortages can lead to disproportation distortion in prices, a
dependable and efficient distribution system is very much essencial All
from
the above study not withstanding its restructuring efforts, pepsi still had some
distance to cover to lead the market.
BIBLIOGRAPHY
Books referred:
Principles of Marketing by Philip Kotler, Gary Armstrong,
Prafulla Y. Agnihotri, and Ehsaan Ul Haque
Magazines referred:
India Today
Business World
Websites referred:
71
HTTP://WWW.PEPSICO.COM
HTTP://WWW.GOOGLE.CO.IN
HTTP://WWW.WIKIPEDIA.ORG
FRIENDS & SENIORS
TELEVISION
72
ANNEXURE
QUESTIONNAIRE
I had prepared questionnaire for Retailers during the survey.
Questionnaire for retailers:
Name of shop/outlet
Address/Location
Type of outlet
b. Coca-cola
c. Both
d. other
b. Coca-cola
c. Both
73
Q.3 How many crates of Pepsi and Coca-cola you sell per
day?
a) 0-1
b) 1-2
c) 2-3
d) More than 3
b. Coca-cola
c. own
d. Both
b. Coca-cola
b. Cola-based
c. Milk-based
b) Businessman
c) Petty traders
d) Self employed
e) Supervisors/Clerical
h) Housewife
a)
b)
c)
d)
e)
f)
Coldness
Availability
Advertisement
Taste/Quality of food
Retailer suggestion
Offer
Less than 50
50-99
100-199
More than 200
Q.12 Was the outlet maintaining the glow sign board, hanger
and flexi board effectively?
a. YES
b. NO
75