Professional Documents
Culture Documents
EXECUTIVE SUMMERY
Therefore the project is done to check the awareness level of the advertisement
among the retailers.
Impact of TV advertisement
INTRODUCTION
The project was started from May 15th to July 15th 2006 for Pepsi Co
India. It was done in Mysore.
The project was carried out due to the criteria of the university after the
completion of M.B.A. second semester.
The main objective of this in-plant training was to get an exposure to the
working environment in an organization. This was an opportunity for us to
relate concepts learnt by us to the practical application in the organization.
This in-plant training provided us in interacting with the highly experienced
managers and to improve our practical knowledge.
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CHAPTER - II
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ORGANISATION PROFILE
HISTORY
Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and
Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay found
PepsiCo, Inc., through the merger of the two companies. Caleb Bradham, a New
Bern, N.C. pharmacist, created pepsi-Cola in the late 1890s. Frito-Lay, Inc. was
formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in
1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932.
Herman Lay is chairman of the Board of Directors of the new company; Donald
M. Kendall is president and chief executive officer.
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.
The new company reports sales of $510 million and has 19,000 employees.
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Impact of TV advertisement
CORPORATE PROFILE
PepsiCo is the world leader in convenient food and beverages with 2005
revenues of more than dollar 32 billion and more than 157000 employees.
The company consists of Frito-Lay North America, PepsiCo Beverages
North America, PepsiCo International and Quaker Foods North America.
PepsiCo brands are available in nearly 200 countries and territories and generate
sales at the retail level of about $85 billion.
Many 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 owns some of the world's most popular brands, including Pepsi-Cola,
Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our
brands are available worldwide through a variety of go-to-market systems,
including direct store delivery (DSD), broker-warehouse, and food service and
vending.
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Impact of TV advertisement
PEPSI IN INDIA
Pepsi gained entry to India in 1988 by creating a joint venture with the Punjab
Government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas
India Limited. This joint venture marketed and sold Lehar Pepsi until 1991
when the use of foreign brands was allowed; Pepsi bought out its partners and
ended the joint venture in 1994. The brand was trademarked on June 16, 1903,
though the drink was first made in 1898, by pharmacist Caleb Bradham.
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1. PEPSI
2. PEPSI CAF CHINO
3. DIET PEPSI
4. 7 UP
5. MIRINDA
6. SLICE
7. MOUNTAIN DEW
8. AQUIFINA
9. LEHAR SODA
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Product Profile
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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: PepsiCos 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.
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Impact of TV advertisement
PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York, approximately
45 minutes from New York City. Edward Durrell Stone, one of Americas
foremost architects, designed the seven-building headquarters complex. The
building occupies 10 acres of a 144-acre complex that includes the Donald M.
Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden
setting.
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Impact of TV advertisement
Divisions
The company reports their operating results as follows, by divisions:
FLNA
PBNA
QFNA
PI
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Community
PepsiCo committed to celebrating and supporting diversity in its community
through its 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 its operating
divisions gave grants to more than 1,000 community organizations, of which a
significant portion were organizations championing diversity. It also support
organizations through gifts in-kind, such as product, premiums, printing,
meeting arrangements, equipment donations, and
support
of
events,
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Impact of TV advertisement
Customers
PepsiCo is committed to marketing its 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 -- PepsiCola recognized the importance of diversity. Pepsi pioneered targeted marketing
and national lifestyle advertising featuring minorities. It developed education and
sports programs spotlighting minorities. PepsiCo partnered with many groups to
create programs that contribute to minority communities. It sponsored major
music tours by entertainers such as Tina Turner. PepsiCo support minority media
and interests. Over the years, its success has been recognized with numerous
awards. Most importantly, its products are purchased and enjoyed by all groups
of consumers.
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Impact of TV advertisement
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 Amsterdam,
Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash
dividends since the corporation was founded.
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Impact of TV advertisement
Sustainability vision
PepsiCo responsibility is to continuously improve all the aspects of the world in
which they are operating i.e. that is environment social and economical with an
intension of creating better tomorrow than today.
This is the core part of the vision.
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Impact of TV advertisement
ENVORONMENTAL POLICY
1. PepsiCo complies with applicable legal and regulatory requirements and
companies standards and conduct regular audits to verify compliance
2. PepsiCo annually review companies performance in implementing the
policy
3. PepsiCo reviews policy periodically and updates as needed.
4. It considers potential environmental impacts in daily decision making
process
5. Pepsi co applies sound environmental management practices.
6. Pepsi encourages conservation of natural resources, recycling and
pollution control to ensure cleaner air and water
7. Pepsi co monitors emerging issues and keep abreast of regulatory
changes technological innovation and stakeholders interest.
8. PepsiCo works with licensed bottlers suppliers and customers top reduce
environmental impacts on its product throughout their life cycle
As the part of their environmental policy Pepsi Co India has
1. Donated generously to the Tsunami victims.
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Impact of TV advertisement
2. The company has also developed a Teppada village NH-4 Begur
surrounding Nelamangala Plant and the company has also been providing
free water to this village.
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Impact of TV advertisement
Fortune Magazine calls PepsiCo "one of the best run companies in the
country.
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Impact of TV advertisement
FACTORY
DISTRIBUTORS
RETAILERS
CONSUMERS
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Impact of TV advertisement
BUGM (CEO)
ED
SOMU
WOMU
COMU
NOMU
EOMU
(MUM)
(MUM)
(MUM)
(MUM)
(MUM)
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Impact of TV advertisement
BUSINESS UNIT GENERAL MANAGER (BUGM): Mr. RAJEEV BAKSHI
EXECUTIVE DIRECTOR (ED): Mr. TANMYA VATS
SOUTH OPERATIONS MARKET UNIT (SOMU):
WEST OPERATIONS MARKET UNIT (WOMU):
CENTRAL OPERATIONS MARKET UNIT (COMU):
NORTH OPERATIONS MARKET UNIT (NOMU):
EAST OPERATIONS MARKET UNIT (EOMU):
MARKET UNIT MANAGER (MUM):
THE MUM FOR SOMU: - Mr. VENKATSHANKAR
Note:
Each market unit has a manager called as Market Unit Manager (MUM).
Represents flow of Authority.
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Impact of TV advertisement
SOMU
CHENNAI
MADURAI
KARNATAKA
(UM)
(UM)
(UM)
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Impact of TV advertisement
The South operations Market Unit is divided into three parts they are
1) Chennai
2) Madurai
3) Karnataka
Each unit has a Unit Manager, which is also called as the Vice
President.
These Unit Managers report to their respective Market unit Manager (MUM)
Mr. Venkatshankar
KARNATAKA UNIT
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Impact of TV advertisement
LMP
TDM
ADC
TDM
ADC
TDM
ADC
MDC
CEs
CEs
CEs
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Impact of TV advertisement
For Karnataka Unit there are:
1 Unit Manager
Is the Unit Manager / Vice president has Sales as well Operational power then
he reports to Line Plant Manager as well as the respective Market Unit Manager
but if the Unit Manager has only sales power then he has to report to the Line Plant
Manager who in turn reports to the Market Unit Manager.
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Impact of TV advertisement
The entire Karnataka unit is been divided into 3 territories and accordingly one
Territory Development Manager is been assigned to each territory: -
2) Kormangala
3) Yeshwantpura
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Impact of TV advertisement
FUNCTIONS OF ACCOUNTS DEVELOPMENTCO-ORDINATOR (ADC):
The function of ADC is developing the new accounts i.e. adding up new
retailers to the existing market list.
He is concerned with sales department only.
Note: The ADC and the MDC are only the supportive functions between the TDMs and
CEs.
Together with the TDM the Karnataka Unit also has a MDM Mr. ABDUL ASHIQ
The TDM takes care of sales activities in its region and the MDM is concerned with
marketing functions.
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Impact of TV advertisement
PLANT DETAILS
PLANT
ACCOUNTS
LOGISTICS
QUALITY CONTROL
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1) ACCOUNTS: - This is one the big department which consists of the
financial operations of the company. It consists of maintenance of
accounts, the provision given to the retailers for the promotion
activities carried on by them. This department also deals with the
provision of coolers and any complaints with regard to it and other
financial requirements of the company.
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Impact of TV advertisement
Pepsi India Holdings, the intermix of company-owned bottling operations
(COBOs) and franchisee owned bottling operations (FOBOs) within the market
units will help in providing a senior resources pool of line and staff managers,
impact both COBOs and FOBOs, and enable transference of best practices both
ways.
The company undertakes two types of operations they are:1) Company Owned Bottling Operations (COBO)
2) Franchise Owned Bottling Operations (FOBO)
Contd
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Impact of TV advertisement
COBOs/FOBOs organizations cut across disparate territories and
helped in building a substantial distribution network. The organization
structure in the market units is being reconfigured to reflect geographic
continuity and tap new market opportunities.
The objective of the exercise is to increase distribution of the company's
products, gain greater flexibility to leverage resources and share best practices.
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Impact of TV advertisement
DISTRIBUTORS IN MYSORE
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Impact of TV advertisement
Among the six distributors three are working over 50,000 AOP and three are
below 50.000 AOP.
Note:
The following are the distributors who are classified under and below AOP.
SAHARA
TIPPU TAJ
RENUKA
N.S.
S. D.
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Impact of TV advertisement
4 UNITS
2. Sahara Enterprise
2 UNITS
3. Tippu Taj
4 UNITS
4. Renuka
2 UNITS
5. N. S. Enterprise
3 UNITS
6. S. D. Enterprise
2 UNITS
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Impact of TV advertisement
2.
Daily
Alternate days.
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Impact of TV advertisement
The following are the 8 important steps followed by the customer executives
(C.E.s):
1. PREPARATION
2. WISHING CUSTOMERS
3. SHOP INSPECTION
4. CHECKING FOR THE STOCKS WHICH ARE TO BE PLACED
5. INFORMING THE RETAILER ABOUT THE STOCKS WHICH ARE TO
BE PLACED.
6. EXECUTION OF THE ORDERS.
7. RE-EXAMINATION.
8. CONVINCING SKILLS.
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Impact of TV advertisement
ADVERTISEMENT
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Impact of TV advertisement
ABOUT PEPSI T. V.
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Impact of TV advertisement
In this ad SRK orders Cable guy that he wants channel when they ask which he
says Pepsi TV they say there is nothing like Pepsi TV then suddenly Pepsi truck
comes and then Priyanka Chopra and Kareena Kapoor comes out and ask him that
does he want Pepsi TV he says yes and tells them where the TV is then it says to be
continued
After several weeks of suspense, while you kept on wondering on which
channel your cable guy will fix your Pepsi TV,he last part of the TV ads revealed
that When you drink Pepsi while watching TV, it is called Pepsi TV
"It basically means... whenever you are watching television, you must have
the cola in your hand. That's how the soft drink is being positioned in the market
through this ad."
The ad, made at an estimated budget of Rs.3.5 million, was shot by Shah
Rukh's buddy Farah Khan and produced by his company Red Chillies
Entertainment.
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Impact of TV advertisement
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Impact of TV advertisement
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Impact of TV advertisement
SAMPLING
The sample size used for the survey is 200 retailers. It includes,
1. BAKERIES (A and B class)
2. SUPER MARKETS
3. FEW PROVISION STORES
This sample size was identified because they were the means of reaching
consumers.
Sampling frame:
It was the route planner provided by the company.
Sampling method:
Judgment sample method was used which is type of Non probability sample. It
refers to a sampling method in which chance selection procedures are not used.
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Impact of TV advertisement
Research Design
The Research design was divided into two parts they are
1. Survey
2. Implementation
The six days of the week were divided as three days for survey and three days
for implementation.
Survey:
was conducted through questionnaire and found out that the many of the
retailers were unaware of the Pepsi t. v. ad. Promo.
Therefore the survey helped the retailers to get the details about the benefits
to be given to the consumers as well the benefits to be availed by the
distributors. The detail about the benefits is attached on the next page.
During the survey we found out that there are three types of outlets selling
cold drinks they are,
PEPSI MONOPOLY
CCX MONOPOLY
MIXED
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Impact of TV advertisement
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FINDINGS
140
120
120
Number Of Outlets
100
80
80
60
40
20
0
AWARE
UNAWARE
Respondants
CHART 1
Explaination
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Impact of TV advertisement
The reason behind the unawareness is that, usually the traders will be on
business or in their outlets. Therefore during our surveys we gave them the clear
picture of Pepsi T.V. ad. Promo. And explained about the benefit.
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Impact of TV advertisement
CHART 2
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Impact of TV advertisement
EXPLANATION
Chart 2
1. Clearly shows the consumers for 2 ltr Pepsi 2 ltr bottles.
X axis Pepsi 2 ltr bottle consumers
Y axis indicate the units in numbers
2. In majority of the outlets I surveyed it was found that the
consumers/customers were usually households and party goers.
Therefore, relating the Pepsi and TV channel is a good concept.
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Impact of TV advertisement
RESULTS
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Impact of TV advertisement
600
562
501
500
SALES
585
400
300
190
200
100
0
MARCH
APRIL
MAY
JUNE
MONTHS
CHART 3
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Impact of TV advertisement
EXPLAINATION
Chart 3 shows the number of cases sold before and during my project.
The figures indicate the number of cases sold from March to June and each
case consist of nine bottles.
When we look at the chart2 we get a clear picture of sales raising in the
month of May (585 cases) compared to the sales figure of March (562 cases)
and April (501 cases).
There was a drastic fall in the month of June (190 cases) as the monsoon
already hit Mysore in the first week of June.
The sales figure of July was not available as my project completed in the
mid of July and the sales results/figures will be available only at the end of the
month.
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Impact of TV advertisement
CALCULATION OF PERCENTAGE INCREASE IN SALES
The two months taken for comparison are April and May
April Before the project was done
May Project Month
June is not taken for comparison because monsoon hit Mysore in first
week itself.
2 litre
APRIL
MAY
% Increase
501
585
7.73
Working:When:
Total sales 1086 (501 + 585)
Incremental sales 84 (585-501)
Therefore, for 100 cases
Incremental sales will be= 100 x 84
=7.73%
1086
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Impact of TV advertisement
DISCUSSION
During the survey I found the following when discussed with the
retailers
1. Consumer involvement
2. Generating curiosity and a buzz (though it has turned out to be an
anti-climax)
3. It may actually succeed in product usage because most of the
TG( i.e. youngsters) watch a lot of television and definitely
consuming Pepsi at the same time will just add to the experience.
4. It chose Priyanka chopra and kareena Kapoor who are
unarguably the most happening young actresses and have a great
appeal in the youngsters.
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Impact of TV advertisement
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SUGGESTIONS
2. Print Media:
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Impact of TV advertisement
3. 9+1 OFFER: - Offering of 9 + 1 scheme to retailers so that they
will be induced to purchase more cases and can push our product
to the consumers instead of other Brands.
This offer will be helpful to convert mixed outlets to Pepsi
monopoly.
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Impact of TV advertisement
WORKSHOP: The cost of workshop will be high therefore to reduce this the company people can
actively participate instead of hiring outside people.
PRINT MEDIA: The cost of print media will be less and it is a means of mass communication.
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Impact of TV advertisement
Location
N. R. Mohalla
Shantinagar
New Kantharaja Urs Road
Gokulam 3rd Stage
Vinayaka Nagar
Jayalakshmipuram
Vagdevi Nagar
New Kantharaja Urs Road
T .K. Layout
Gokulam Main Road
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Impact of TV advertisement
CHAPTER - IV
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Impact of TV advertisement
QUESTIONNAIRE
1) NAME :
2) ADDRESS:
3) Do you know about Pepsi TV?
YES
No
4) What kind fob customers are walking in for 2 ltr Pepsi Bottles?
Household
Partygoers
5) Do you know about the benefits that you get on pet bottles?
YES
No
No
COMMENTS
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Impact of TV advertisement
BIBLOGRAPHY
The information needed to complete this project was directly from,
EXTERNAL GUIDES: -
WEBSITE: -
www.pepsico.com
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