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A PROJECT REPORT ON “PROMOTIONAL STRATEGIES OF PEPSI IN MUZZAFARPUR” FOR PEPSI BY UJJWAL KUMAR VERMA UNDER THE GUIDANCE OF PROF

. SUNIL DOKE SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) THROUGH VISHWARKAMA INSTITUTE OF MANAGEMENT PUNE-48
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COLLEGE CERTIFICATE

To Whomsoever It May Concern
This is to certify that Mr. Ujjwal Kumar Verma is a bonafide student of our institute. He has successfully carried out his summer project titled “Promotional Strategies of Pepsi in Muzzafurpur” at Lumbini Beverages Pvt. Ltd. This is original study of Mr. Ujjwal Kumar Verma and important sources of data used by him have been acknowledged in his report. The report is submitted in partial fulfillment of two years full time course of Masters in Business Administration (2006-2008) as per the rule.

Prof. Sunil Doke (Project Guide)

Dr. Sharad Joshi (Director)

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PREFACE
There is a famous saying "The Theory without practical is lame and practical without theory is blind". This modern era is era consumers. A consumer satisfies themselves according to their needs and desires, so they choose that commodity from where they extract maximum satisfaction. It has been identified that in the beginning of 21st century the market has observed a drastic change. The successful brand itself in such a way that buyers in them in special values which match their needs. Marketing is an important part of any business and advertisement is the most important part of marketing.Summer tanning is an integral part of the MBA and student of Management have to undergo training session in a business organization for 6 weeks to gain some practical knowledge in their specialization and to gain some working experience. Our institution has come forward with the o opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers. To the emphasis on practical aspect of management education the faculty of Management studies of Vishwakarma Institute of Management, Pune has with a modern system of practical training of repute and following management technique to the student as integral part of M.B.A. in according with the above obligations under going project in “Lumbini Beverage Pvt. Ltd. Hajipur. The title of my project is “A Brief study of Promotional Strategies in Lumbini Beverages Pvt. Ltd. Hajipur, at Muzaffarpur”. Certainly, this analysis explores my abilities and strengths to its fullest extent for the achievement of organization as well my personal goal.

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ACKNOWLEDGEMENT

At the every out set of engaging myself in to the Project Report. I would like to express my sincere gratitude to all those who extended there not only to convey their best wishes but also to give me support on this hi-undertone path. This project report on my eight week practical training in Lumbini Beverage Pvt. Ltd. (Pepsi) in area of Muzaffarpur at apart of course curriculum of my MBA degree. At first, I would like to express my sincere thanks and deep gratitude to my esteemed guide Mr. Sunil Doke for his kind initiative, guidance and valuable suggestions without which the completion of this work would not have been possible. I also express my profound sense of gratitude to Mr. Rajesh Shukla, T.D.M., M/s Lumbini Beverages Pvt. Ltd., Hajipur, who provide me an opportunity to work and also guided me at every step of my project. His proper direction and constant inspiration provide to be an Asset for this project. I also acknowledge with a deep sense of reference my gratitude towards the members of my family who has always supported me morally as well and economically.My last work not the least thanks goes to all my friends who directly or indirectly help me to complete this project report.

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CONTENTS Page No. Chapter 1. Introduction to the Study Objective of the Project Importance and relevance of the Study Scope of the Study Methodology Limitations of the Study 9 - 25 History of the Soft Drinks in India History of Pepsi History of Lumbini Beverages Pvt. Ltd. Hajipur Production Process Product Manufacturer and Main Consumer 26-32 1-8

(a) (b) (c) (d) (e) Chapter 2. (a) (b) (c) (d) (e) Chapter 3.

Introduction to Lumbini Beverage Pvt. Ltd. Hajipur

Organizational Structure Organizational Structure of Lumbini Beverages Pvt. Ltd. Hajipur Function of Marketing Personal

(a) (b) Chapter 4. Chapter 5. Ltd. Chapter 6. Chapter 7.

A Theoretical framework of Promotional Promotional Strategies for Pepsi in Lumbini Beverages Pvt. Analysis of the Data and Its Inferences Conclusion and Suggestion Bibliography Questionnaire 63 64

33-41 42-51 52-57 58-64

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CHAPTER 1 INTRODUCTION TO THE STUDY
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Objective of the project Importance and relevance of the Study Scope of the Study Methodology Limitation of the Study

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Introduction to the Study
Marketing is a key factor in business. It is very exciting field. The modern concept of marketing is different form the traditional concept. The old concept was based on the physical movements of goods. In the modern concept, marketing is human activities directed to satisfying needs and wants through exchange process. So, Philip Kotler has defined “Marketing is a social and managerial process by which individual and group obtain what they need and want through creating and exchanging product and value with other.” According to another marketing Pandit – “If you do not think customer, you are not thinking.” In the undergoing study, the attempt has been made to study the Promotional Strategies carried by Lumbini Beverages Pvt. Ltd. This eight weeks training in the organization was of great help. Though in eight weeks it was no possible to understand it so deeply but overall ideas were developed.

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(A) OBJECTIVE OF THE PROJECT

Management is a course which teaches the student to get the work done properly from different available sources viz. man machine material money etc so that there can be a satisfaction from the organization side and the workers side who pay a significant role in achieving success. So far the fulfillment of the management courses it gives emphasis to project work and student tend to develop analytical and problem solving skill. We necessarily become motivated and competitive. In fact all the learning that goes on for the two year term becomes so much the part of our thinking that we developed a well rounded personality.

(i)

Find the depth and width of distribution channel adopted by Lumbini Beverages Pvt. Ltd. And compare them with those followed by competitors.

(ii)

To ascertain the consumer brand perception of soft drink with respect to price product taste quantity and advertising.

(iii)

Study of advertising techniques used by Pepsi.

(iv)

Study of public relations, and personnel selling used by Pepsi.

(v)

Study of promotional strategy used by Pepsi.

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(B) IMPORTANCE AND RELEVANCE
Cold drinks were started with the idea of quenching the thirst of the persons traveling. It was also felt that reliable good water was not available everywhere. So people would really on their on their packed bottle and with the idea its makers made these drinks available mostly at those places where water was not available i.e. on highways and long distance trains. But slowly and slowly with its beautiful taste these become very popular and now they are available not in the markets and street corners, but also people have started keeping it in their houses. The credit of popularizing the soft drink goes to Coca-Cola. This was the drink, which was liked by all ladies, gents and children. Now days soft are quenching thirst but looks more often they are taken of habits. Gold spot is considered as the first branded soft drinks established 53 years ago before all empowering coca-cola faced competitions and its euphoric image built up in the western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. Be regarded a the first Indian company introducing Limca a Lemon drink complementary to their this had also introduced cola peptone which was withdrawn in face of tough competition from coca cola. When coca cola bid a sad farewell in 1977 Indian market was open for various new forward pushing different brands in the market. Parle day share here again as if happy days went away with coca cola pure drinks of Delhi also without lasting muz, introduced (Parle drinks were producing and marketing Coca-Cola earlier) campa cola with campa orange and campa lemon. Modern bakeries interested the market with double seven, Mohan making with pick up and McDowell with Thrill, Rush and Sprint. This is Indian market where there was no competition and high voltage advertising was on. Each one was trying their best to become number one company with “A” class product in the field of Soft Drink Business. Now after a long gap, government of India has given permission to Coca Cola has joined with PAPLE to business in India. They are trying their best to regain prestige which it had before. The archrival of Parle is PEPSI and American Concern. It started business on the Indian Soil just a few years ago. Today, it has occupied 62% share of soft drinks market in India. Now PEPSI is going all out to prove that they are the best. But now to some any factors of competitions, Competitions among them has become stiffen. So in this way the importance activities have in creased.

(C) SCOPE OF THE STUDY
Scope of this study covers a wide range of theoretical application and administration aspect, under which product reaches from the producer to the ultimate consumer. The objective is mainly to find the true value of Business activity of the firm. Finally it will be concluded after successful completion of the studies in respect of fruitful implementation of the knowledge. So gained regarding smooth, and calm business operations for different activities of the firm in present atmospheres. 9

Now a day’s business organization mainly consists of the following functional areas to be successfully operated which are as Production, material handling, marketing, finance and Personal. Out of these, marketing has a vital role in the successful running of the firm. Our point of study is also related to the marketing. Production department can produce a quality product but unless there is an efficient market to sell the products nothing can be achieved. Hence, we may say that out of these departments marketing has quite important role. In this marketing, there is Promotion Mix, which is also my subject to study. This plays an important role in maintaining good services and also helps in reduction of company cost. The present study also aims to study the existing practices in executing ‘Promotion Mix and suggest any modification if required in the existing promotional strategy so that faulty promotional strategy removed for the benefit of the organization.

(D) METHODOLOGY
“Marketing Research is the systematic design, collection analysis and reporting of data and finding relevant to a specific marketing situation facing the company” The present study of soft drink market in all area of Muzaffarpur is based on survey method. In survey methods, there are two types of survey. One is “Census Method” and another is “Sampling method” In this sample method I have taken only a small part of the whole and data collected from the small part are made applicable to the sole i.e. I have taken Muzaffarpur and some adjacent area of Muzaffarpur town. Within the time limit, I tried my best to select the sample representative of the whole group. During my training, I maintained different chart for different routes during my dealer survey. I have collected data from the distributors of Muzaffarpur. Data Sources: Primary data collection involved Distributors, Retailers, and Consumers. Research Approaches: - Survey Research instrument: - Interview Schedule Sampling Plan: Sampling Unit: - Distributors Retailers Consumers Sampling Size: 02 20 150 Sampling Procedure: - Purposive Selection Contact Method: - Personal Interview Inter interview schedule researcher used multiply choice questions and ranking systems questions.

(E) LIMITATION OF THE STUDY
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As I was asked to carry on my vocational training I found the following limitations during my training period. So I could collect every information regarding my topic. (a) (b) Shortage of time factor was one of the biggest constraints. Most stress was given on the primary data as it was difficult to collect secondary data form the organization and distributors since it is difficult to ascertain the authenticity to their statements. (c) All the observations and recommendations will be made on the feed back obtained from survey.

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CHAPTER 2 INTRODUCTION TO LUMBINI BEVERAGES PVT. LTD. HAJIPUR
History of the soft drinks in India History of Pepsi  History of Lumbini Beverages Pvt. Ltd. Hajipur  Production process  Product Manufacturer and Main Consumer
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INTRODUCTION TO LUMBINI BEVERAGES PVT. LTD.
Lumbini Beverages Pvt. Ltd. is set up at Hajipur industrial area in Vaishali District of N. Bihar. Lumbini Beverages Pvt. Ltd. Is the production unit and its whole marketing activities are done through Lumbini Beverage Pvt. Ltd. Its office is situated at Hajipur. Lumbini Beverages is one of the many franchises Pepsi bottling plant in the country and also one of the four in Eastern India. The other three are at Cuttack, Guwahati and Jamshedpur. Lumbini Beverages Pvt. Ltd. Was incorporated in the year 1995 under company act 1956. But the actual production staled in 1998. It was set up because steel city Beverages Pvt. Ltd. Jamshedpur was unable to fulfill the market demand of N. Bihar during the peak months i.e. May-June. Since the plant was not constructed on time so during 1997-98 delivery to N.Bihar was also made from Dranchu beverages, Bhutan. Location: The plant is located in the industrial area of Hajipur, N.Bihar. The plot is situated at a distance of twenty-five kilometer from the city of Patna. The site well connected by road to other areas of N.Bihar. The total area of the land is around 1000 acres. This land has been procured from N.Bihar Industrial Area Development authority. PRODUCT & PRODUCTION CAPACITY:Lumbini Beverages bottles Pepsi, Mirinda (both lemon and orange flavors), 7up, slice and soda having capacity or 600 bottles per minute (BPM) and having annual installed capacity of 48 million bottles (2 Million crates). PLANT AND EQUIPMENTES:The main plant consists of filler, mojonnier, bottle, washer, caser? Uncase, conveying system. Refrigeration system, water treatment plant and other auxiliaries. The major line has been imported from USA. However the auxiliaries including utility are being available indigenously. Local contractors under the supervision of freeing technicians have done the creation and commissioning of imported plant. However indigenous equipment is created and commissioned through local contractors or supplier. MARKETING AND SELLING ARRANGEMENTS:Pepsi is a well-known brand for soft drink and marketing the product is done through effective distribution network under the guidance of Pepsi roods Ltd. And a parallel concern named Lumbini Beverage Pvt. Ltd. Is arranging the marketing & selling business. POWER:Since a plant cannot run without power, so the required 500 KV is being supplied from the nearly electrical substation.

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BOARD OF DIRECTORS:The following persons constitute the present Board of Directors of the concern. 1. Mr. Charan Kumar Khilani (Managing Director) 2. Mr. Sanjay Kumar Khilani 3. Mr. Manoj Kumar Khilani 4. Mr. Ravi Kumar Khilani 5. Mr. S.M. Surana It is also proposed to broad-base “the board or the company by induction of professional in due course. The annexure below shows the developed organization pattern according to operational requirements. 1. Factory :Designation Work Manager Supervisors Sr. Chemist J r. Chemist Typist/Clerk Skilled workers Drivers Handlers Maintenance Eng. Watchman/Security Total 2. Head Office:Director Manager Admnistration. & Purchase Administration. Officer Purchase officer Purchase asstt. Manager Accounts Account Asst. Clark Steno/Typist Driver Peons Total 3. Sales department Sales Manager 14 1 1 1 1 1 1 2 4 3 3 4 22 Total Manpower deployed 1 15 1 2 5 30 12 24 3 12 105

Sales asst. 3 Sales representative 12 Sales clerks 3 Total 3 Grand total of employees = 105+22+19+ =146 The Managing Director holds the top position. But the overall policies regarding management the “Board of Directors” decide decision and sell other executive functions. (A) HISTORY OF THE SOFT DRINKS IN INDIA Christopher Columbus as traveler of world found a lot of new thing which was not in the eye of world community which is now in our history but now if any one does travel to whole part of world to will get one thing in some from that is PEPSI Travel to any corner of the globe you are sure to spot a label splashed in blazing blue red and white becoming you to some “Sugared Water”. This dark colored drink Willy Milly has today become nothing but spot of an international anthem with young and old rich and poor wants for a sip and saying “YEH DIL MANGE MORE”. Gold spot is considered as the first branded soft drink, established 53 years ago before all empowering Coca Cola entered the country to dominate the scence. It faced no competition and its euphoric image built up in the western countries helped it to get ready clientele and glamour. Parle Export Pvt. Ltd. Be regarded as the first Indian company introducing Limca, a lemon drank complimentary to their well established Gold spot in 1970 which got moderate success. How ever, before this he had also introduced Cola pepino which was with drawn in face of tough competition from Coca Cola. When Coca Cola bid farewell in 1977, Indian market was open for various cold drinks and several companies came forward publishing the different brands in the market. Parle people introduced their Cola Thums up with a mighty bang saying “HAPPY DAY ARE-HERE-AGAIN” as if happy days want away with coca cola. Pure drinks of Delhi, also without losing much time introduced pure drink producing and marketing Coca-Cola earlier campa cola along with campa orange and campa lemon. Modern bakeries entered in the market double seven, Mohar. Making with Marry & Plk-Up McDowell with thrill, Rush and sprint in Indian market where there was no competition previously a cut throat competition and heavy advertising was on. Advertising was on. Each one was trying their best to become the number one company with “A-CLASS” product in the field of soft drink business. Now after a long gap to Govt. of India has given permission the Coca Cola to start their business in India. Coca Cola has joined hand with parle to be business on the Indian Soil. They are trying best to regain its prestige which it has before. The much rival of Parle is Pepsi and American Concern. It started business the occupied nearly 50% share of soft drink market in India. Now Pepsi is going all out to prove that they are the best.

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(B) HISTORY OF PEPSI PEPSI Co. is a USA based Company having its head quarters at New York with the net worth of $30-40 million. The average sales of the company are approx 90 million bottles per month. PEPSI made it first international move in Russia in 1959. During the KRUSCHEV era. Within 32 years PEPSI emerged as the biggest competitor for Coca Cola. PEPSI is available in 155 countries. In any soft drink is read on the globe that is Pepsi food is one of the largest soft drink companies in the world with its head quarters in New York. It was in vented by Jpharmachist Culab D. Baradham in 1898 to cure the disease “disparsia”. It is from this word that its name was related to Pepsi. Soon it entered the American market as soft which at that time was mostly dominated by Coca Cola but soon Pepsi able to dominate the Cola market and there after it has been no looking back. Pepsi and coca cola are engaged in ferocious cola war that has taken the whole world by storm. Pepsi entered the Indian soft drink in KANPUR in 1988 and began its production in May 1990 and soon it was giving the local contenders the rum for their money in soft drink market. It came out with dazzling marketing innovation that rocked the cola market likes selling the product through function Pepsi outlets. Its advertisement agency was (HTA) “Hindustan Thomson Association “Its advertisement budget for 1995-1996 was valued at Rs. 24 crores which likely to be increased manifold in coming years. Pepsi food is one of the largest and best foreign investments in India. Till today it has investment over Rs. 500 Crores in India to bottle its total product. There are 28 bottling plants of Pepsi in India. Some are directly controlled by Pepsi and rests are under various franchise. Pepsi stands 51 positions among the fortunate companies of the worked. Its total capital is approx $3000 crores and total sales annually is worth $37 crores. Its total profit in the year in the business is 45.25 lakhs globally. In April 1997 the Pepsi cola international decided that city beverages will cover south Bihar (now Jharkhand) only. It this accordance Pepsi cola international decided to open another bottling plant at Hajipur named LUMBINI BEVERAGES Pvt. Ltd. Hajipur which will distribute Pepsi of Lumbini Beverages Pvt. Ltd. Hajipur started functioning in April 1977 managing Director of Lumbini Beverages Pvt. Ltd. Hajipur Mr. Charan Khelani. Mr. Charan Khelani is a big industrialist of Bengal. The director of this organization is Mr. Rajiv Khelani.

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(C) HISTORY OF LUMBINI BEVERAGES PVT. LTD. HAJIPUR Steel city beverages pvt. Ltd. is situated at Aditapur Knadra Road in Jamshedpur “Rushabh Marketing Pvt. Ltd. is marketing division of steel beverages steel city beverages is a mother unit and its whole marketing units are done through Rushabh marketing pvt. Ltd. Steel city Beverages is one of the Pepsi foods Bottling plants in the country and one of the three in Eastern India. The other two are in Cuttack and Guwahati. But from 01-04-197 “Pepsi Foods Ltd. India “determines to open another bottling plant which is situated at Hajipur namely “Lumbini Beverages Pvt. Ltd.” It is only for North Bihar. Steel city Beverages Pvt. Ltd. was established by Late Mr. Dharam Chand Kamani in the month of June 1967. The machineries of its main plant were imported in 1968 and production started in March 1669. Before the establishment of S.C.B. Pvt. Ltd. Coca-Cola was not much popular among people of Bihar State as pure Soft drink. Because at that time the bottles of Coca-Cola was supplied by the outsiders who were unable to make Coca-Cola popular in Bihar. So after considering the needs and desires of people “Mr. Dharma Chand Kamani brought the Coca-Cola movement in Bihar. With this effort Coca-Cola become very popular among the people of Bihar. But in 1977 duo to sudden change in the policies of the Government “the import license for the concentrate of Coca-Cola was stopped. So S.C.B. Pvt. Ltd. had to walk over to Indian Concentrate Companies. They were modem food industries supplied concentrates of double seven and non Ice Cream Soda. In 1983 the company introduced a Cola drink “THRILL” of Mc-Dowell & Co. Ltd. in the place of Double seven and triangular and in very next year two soft drink “Rush “ an orange flavored and “Sprint” as lemon flavored of Mc-Dowell & Col Ltd. ware introduced not these are under. Old Name Thrill Sprint Rush Kissan Mirinda(New) Mountain Dew(New) New Name Pepsi 7’Up Mirinda Slice Mirinda Mountain Dew Flavor Cola Lime Orange Mango Lemon Lemon

Before some months “Annada Marketing Pvt. Ltd. “was the marketing division of Lumbini Beverages Pvt. Ltd. but at this, Lumbini Beverages Pvt. Ltd. is doing marketing with its own name. Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made tremendous move towards the introduction and development of soft drink industries on the whole, and North Bihar in Particular . It has made production of perfect hygiene and standard Soft Drink as main objective.

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(D) PRODUCTION PROCESS The process of manufacture of Aerated water (soft drink) like Pepsi brand product is divided into mainly five parts such as i. ii. iii. iv. v. Water treatment Syrup making Bottle washing Filling Testing of product (a) Water treatment :Water treatment is very essential in soft drinks plants as the nature and quality of water varies from place to place. To set uniform and standard water the process of treatment is carried on. The water taken out from bore well be the help of motor pump and pipe lines are collected in a storage tank where is prechlorinated by chlorinator and by the help of pipe lines comes to treatment tank called coagulation tank where to this water solution of different strength of bleaching powder ferrous sulphate hydrate lime are added through dosing pump to reduce alkalinity hardness kill the bacteria. The chemicals are mixed by mechanical stripper and then suspended matters settle down as sludge and clear water passes to retention tank. From this rank , the water passes through sand filter containing find sand and pebbles and carbon filter containing granular carbon and finally through water polisher, micron filter UV lamp to ensure clear and sanitary water for use. Further water used in bottle washer and boiler need softening. For filter bed containing fine sand and granular carbon respectively comes to pass through a bad Resin where it is softened. The soft water is essential to use in boiler and Bottle washer to reduce scale formation inside the machines. (b) Syrup marking:For Syrup making of particular brand calculated quantity of sugar, water activated carbon and hyflow super cell know as filter aid taken into a sugar space to enter steam and also fitted by a motor with agitator. Sugar syrup called raw syrup is prepared bye dissolving the sugar with continuous stirring and heating by steam supplied by fired Boiler. This hot syrup by the help of pump is filtered through a filter press attached with a serious of quality filter paper to separate our carbon particles. Clean hot syrup by the help of SS pipe lines passes through water PHE for cooling and the another PHE circulated by glycol for further cooling . The chilled syrup comes to a mixing tank which is cleaned and sanitized prior to use. After calculating of sugar quantity of Brix Hydrometer, concentrate added to the took and mixed thoroughly by a mechanical stirrer fitted to that tank. This syrup is known a finished syrup ready for use. The concentrate mainly the liquid parts are kept in a cold store the temperature if finished syrup room is also maintained Air – Conditioner. All the containers used for syrup making are cleaned and sanitized by soda bi carb strong chlorine solution and hot caustic soda solution.

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(c) Bottle washings:Bottle washing is an important part is soft drink plant. The empty durable and returnable bottle used are returned from market in plastic crates are fed to a bottle washing machine (washer). The machine has double end system with circular chain to carry the bottles. Caustic Soda, tri sodium phosphate sodium Glusonate are added to the caustic by the caustic tank filled in with water heated by steam supplied by the boiler. The empty bottles enter to hot caustic tanks in one end and after being cleaned by not caustic solution and finally. Washed with water through spray jets fitted are discharged in other end. The washed bottles after proper inspections are SU 319& SU 853 is used for convey or cleaning and smooth running of chain carrying bottles. SU 260 & SU 773 is used for bottle cleaning shining and mold removing. (d) Filling:Finished syrup and treated water lime are connected to a dosing pump which mixes syrup and water with ration of 1.5 and the syrup mixed with water enters to carbonator tank to mix with carbon dioxide gas which is preserved in cylinders for use. The cylenders are connected through CO2 manifold to tank to use requisite quantity of gas. To control CO2 pressure and temperature of liquid we used recording control (Taylor). The syrup passed through a PHE which is called itself by circulation of chilled glycol supplied chilling F-22 gas used. The syrup being chilled easily for mices with CO2 gas and enters to filter for bottling. The filter is fitted with filling valves and lift cylinders. The lift cylinders function by pressure of air supplied by an air compressor. The syrup known as beverage in this stage is filled in the cleaned bottled which are durable in natural and returnable by buyer filling machine (filter) by a counter pressure of carbon dioxide gas .After beverage is filled in bottle it goes to the crowner where with the help of a crown corks the bottles are sealed (Crowned) to project the carbonation flavor outside contamination and spoilage. The finished products are coded by a coding machine and inspected properly by inspection light while passing through the conveyor where finished product are calculated. Then the products are kept in plastic crates which are durable in nature and returnable by buyer on palates and sent to shipping for shipment. All the containers in contact with syrup are properly cleaned and sanitized by soda bio-carb, hot water, caustic soda solution and strong chlorine does. (e) Testing of product:Finally the finished syrup during bottling is tested in laboratory to meet the parameters and also to get standard and quality products. To maintain the standard and uniformity in products the sugar contents and carbonation in the filled bottle are checked in regular intervals by certified by brix-hydrometers refer to meters and pressure gauze. The dead weight tested is used to calculate pressure gauze to know the correct pressure. TA & Ph are tested digital Ph meter. Electronic digital balance is used to weight chemical to conduct test in lab. The purity of CO2 is checked by CO2 purity tester. The chlorine comparators. The microbiology test of the product and product and water used in syrup making and production are also done to ensure that product is free 19

from any bacteriological contamination. To conduct the micro test hot sterilizer incubator autoclave pads filter membranes media are produced and used. The diesel generator is operated in case of electricity failure for smooth operation of the plant. To drawn electricity for the state electricity board the transformer is used. (E) PRODUCT MANUFACTURED & MAIN CONSUMER The steps involved in production process are:o First the fork lift supplies the empty bottles which are collected from the distributions. o Then depolarizing is done i.e. separating cases filled of empty bottles from the wooden planks. o Uncasing is done by separating empty bottles from the cases/crates. o Empty bottles are then fed into the bottle washer where stream with some chemical is used for washing. o Washed bottles are then sending to the filler where premix (composed of syrup, treated water bulk CO2) is filled in it. o The whole concentrated is chilled with glycol before filling and then crowning is done. o The filled bottles are passed through inkjet coder printing price and date. o Then again the filled bottles are sending for final light inspection and from there they are collected on a table. o Lastly, the filled bottles are arranged in the crates (casing) and then palletizing is done for storing it in the ware house. PREPARATION OF SYRUP Treated water + Sugar = Flavor The product manufactured by “Lumbini Beverages Pvt. Ltd. “ Are very limited in range as it is not independent to diversify its product. It is a unit of Pepsi food Pvt. Ltd. Which supplies concentrates for different soft drinks they are:Product Pepsi Mirinda Mirinda Mirinda 7 UP Slice Lehar Soda 20 Quantity 300ml,200ml 300ml, 200ml 300ml, 200ml 300ml, 200ml 300ml, 200ml 300ml 300ml Color Burnt Sugar Sun-Set Tetrazine Tetrazine Colorless Sun-set Tetrazine Flavor Cola Orange Lemon Appel Lime Mango Lemon

Pet Pet Can Aquafena CUNSUMER

1.5 lit 2 lt. 330ml 1 lit.

Burnt Sugar Cola Burnt Sugar Cola Burnt Sugar Cola Mineral Water White

The main consumers of these products naturally are youth. Besides the direct consumer it is also use for the some purpose of provide it to the mass by hotelier’s restaurant owners and various other soft drink peddlers. These products are the choice of the new generation. Thus it can be said that it is product of mass consumption.

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CHAPTER 3
ORGANIZATIONAL STURCTRE
a) Organizational structure of Lumbini Beverage Pvt. Ltd Hajipur b) Function of Marketing personal.

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ORGANIZATIONAL STURCTRE
(A) ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGE PVT.LTD. HAJIPUR An ideal organizational structure facilities management and the operation of the enterprise and its helps or the organization in achieving its goal. In a simple term in which various parts or components are interrelated or inter connected and this way it is the established pattern or relationship among various position and activities. Thus structure is the relationship among various function of the organization in the established manner. The managing director holds the top position .At present, the managing director of lumbini Beverage Pvt.Ltd. is Mr. Charan khilani .but overall policies regarding management decision and all executives function or performance look after by the day to day decision and general administration well as management. The MD has given the power of attorney and attorney to director Mr. Ravi khilani. Mr. .Ravi khilani who is well advised by the M.D. The director Mr. Ravi Khilani looks after all functional departments that sales production, accountant, personnel and purchased, though the manager the entire functional Department his specially designated as head of personnel department. Every department have to report directly to the managing director and is responsible of his only for working in spite of this all department are under the control of the director Mr. Ravi Khilani because he is the chief executive of the company cited earlier. The overall organizational structure can be shown as:

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OVERALL ORGANIZATIONL STRUCTURE OF LUMBINI BEVERAGE PVT.LTD HAJIPUR

Plant manager

Finance controller

Personnel manager

Sales Manager

Quality control

Accounts officer

Security

Depot In charge

Store Keeper Production department

Office In charge Sr .Sales Executive

Time keeper

Sale executive

Supervisor

Sales

The marketing managers are in charge of all marketing activities that are a sales promotion publicity, and advertisement, marketing study and shipping. But the main function of the marketing is to exercises the control over the channel of distribution.

The managers marketing assisted by sales executives, city sales executives and ruler ales executive in charge of shipping department. This can be presented by the organizational chart department as follows. 24

DIRECTOR

MANAGING DIRECTOR

SALES MANAGER

STATISTICIAN

CITY SALES

SALES EXECUTIVE

SALES SUPERVISOR

DRIVER HELPER

FRANCHISEE

CITY SHOWROOM INCHARAGE

SALESMAN

LOADERS

B) FUNCTION OF MARKETING PERSONNEL
The requirement of sales executive job very from position within the company. However certain responsibility are typically as sought by to the same type of executives in different companies .it is possible therefore to generalize about the activities and responsibilities of sales manager, area sales and sales executives. POSITION GUIDE SALES MANAGER REPORTING RELATIONSHIP The sales manager reports the vice president of marketing. JOB OBJECTIVES The primary objectives are to secure maximum sales volume through effective development and execution of sales programme and sales policies for the product by the division. FUNCTION OF SALES MANAGER 25

The working towards achievement of the primary job objectives the sales manager is expected to be connected with the following function. 1) SALES PROGRAMME The sales manager taste the initiative in established short and long range sales goals of the division and in collaboration with other marketing executives, sales, profit, growth and other goals. 2) ORGANIZATION Sales manager established and effective plan to organisation, that methods of controlling the activities of the member of the sales organisation , that will provide sufficient time for carrying out of the time department responsibilities. 3) SALES FORCE MANAGEMENT The sales manager identified promising source for the recruitment of new sales personnel and sets standard relation of the most promising recruits the sales manager also provides for the training of new personnel. So as the achieve of new personnel. So as the achieve high level performance in the shortest possible time. (4) INTERNAL AND EXTERNAL RELATION The sales manager effective working relations with other department head and the General Manager. So that the significance sales department can be translated into appropriate cause of action. (5) CONTROL The sales manager consults with the production manager so that and inventories general as closely as possible to actual sales needs. POSSITION GUIDE AREA SALES RELATIONSHIP The ASM report s to the sales manager. JOB OBJECTIVES The primary objective is to secure minimum sales of the company’s product the sales area in accordance established sales policies and sales programme with limits of the budget. in the MANAGER AND production rates REPORTING

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FUNCTION OF AREA SA LES MANAGER 1. SUPERVISION OF SALES PERSONNEL The ASM direct and supervision sales personnel in maintaining and improving the company’s position and in dead line special. 2. CONTROL The ASM forecast short term sales of area of works with sales personnel in estimating future sales in their territories so the accurate e sales budget and sales quotas can be developed. 3. ADMINISTRATION The ASM is responsible for the efficient administration of the area office operation and the work cause and stock facilities in accordance with established policies and procedure 4. COMMUNICATION The ASM communicate to sales manager and top administration in any information about customer and market of personnel that should be interest to them. FUNCTIONS OF SALES EXICUTIVE Basically the sales executives have two sets of function. Operating, and planning function. (1) OPERATING FUNCTIONS The operating function includes sales force management handling relationship with. Personnel in other companies and with the trade communicating the coordinating with their marketing executive and reporting to sun superior or executives. (2) PLANNING FUNCTION

The sales executive planning function includes those connected with the sales programme, the sales organization and its control. The sales executive is responsible for setting operation setting development of the sales programme and personal selling strategy and for putting together plans for the implementations.

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CHAPTER -4 A THEORETICAL FRAMEWORK OF PROMOTIONAL STRATEGIES.

28

A Theoretical Framework of Promotional Strategies
Promotion is just like the spark plug in the marketing mix. It is the process of marketing communication involving information, persuasion, and influence. Promotion has been defined as “co-ordinate self-initiated efforts to establish channels of information and persuasion to facilitate or foster the sale of goods or points of view.” Thus, promotion is persuasive (Communication to inform potential customers of the existence of products, to persuade them that those products have want satisfying capabilities). The marketing mix (or promotion mix) consist of five major modes of communication vix. Advertising, sales promotion, Public relations and personal selling. All elements of promotion mix have a defined ~ole in all stages of the selling process. The objective of promotional strategies is to influence the customer in such a way that he can purchase the product of his own will and then patronizes the same brand in future too. Thus there are two important activities. 1. To give information about the product. 2. To influence (increase) the demand of the product. Within the five forms of promotion, each as distinct features that determine in what situation it will be most effective.

ADVERTISING STRATEGY:
Demand creation has become an important function now – a Day. Advertising is one of the important activity through which a manufactures firm conveys persuasive communication to the target buyers. “Advertising nothing more than the use of bright ideas, Students, and slogans to popularizes goods which appeals to the great body or ordinary consumers. Advertising is an extremely versatile took of communication. It consists of non-personals forms of communication conducted through paid media under clear sponsorship.” Americas Marketing Association says: “Advertising is any paid form of non-personal presentation and promotion of ideas, goods or service by an identify sponsor.” The main purpose of advertising is to communicate. Its long-term objective is profit maximization. Because of the many forms and users of advertising, it is difficult to make all embracing generalization about its distinct quality as a component of promotional strategy. It serves a number of other allied purposes also, which are as follows: 1) 2) 3) 4) 5) 6) 7) 8) 29 Helps to salesman. It makes the certainty of new demand. It removes the doubt about the goods. Maintains sales demand. Create image and goodwill of the advertising firm. Explains the various uses of goods to the consumers. Reduces in production and distribution cost. Enables the producer to face competition.

9) 10)

Increases in sales and ultimately the profit of the firm. Reminds the users to buy the products.

Thus advertising in an efficient way to reach numerous geographically dispersed buyers at a low cost per exposure. In the modem sense advertising is a mass selling technique. It is an informative and educational force that aids the consumer to form, judgment on what to buy. ADVERTISING MEDIA: Selection of a suitable medium of advertising (or a combination of media) is san important decision. There are numerous media of advertising available to the modern advertisers. So, in managing its advertising program, a company carefully evaluates the effectiveness of previous ads and uses the results to improve the quality of future ads. Novelty in this field is misnomer. Infect there is nothing novel in this area because with the passage of time, the advertisers and the advertising agencies have thought of new way and means of approaching the prospects . But for the sake of description one conveniently divide the basis types of advertising media in the following manners. Advertising Media: 1. 2. 3. 4. Daily papers Sunday papers Sunday supply. Weekly news paper.

1. Poster 2. Advertising Board 3. Wall Advt. 4. Bus, Trains &Trams etc. 1. 2. 3. 4. 5. 6. 7. 8. Direct Advt. Outdoor Advt. Advertising novelties. Exhibits trade shops. Screen Advt. Directories. Packages ,Labels &Inserts Calendar and gifts

1. Weekly. 2. Fortnightly. 3. Monthly. 4. Yearly Journal 1. Trade journals. 2. Technical Journals

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Sales Promotions: Sales promotions consists of a divers collection of incentives tools, mostly shortterm design to stimulate quicker and / or greater purchase of particular / services by consumer or trade. “Sales promotion is an organized effort applied to the selling job to secure the greatest effectiveness for advertising and for dealer’s help.” George W Hopkins American Marketing Association says promotions include “those activities other than personal selling. Advertising and public, that stimulates consumer purchasing and dealer effectiveness such as displays. Shows and exhibitions. Demonstrations and various non – routine.” We may say that sales promotion is a demand stimulating device designed to supplement advertising and facilitate personal selling. All the marketing and promotional activities ,other than advertising, personal selling and publicity, that motivate and encourage the consumer to purchase by means specialties, samples cents of coupons, sweep stakes , contest etc. It offers direct inducement to act by providing extra worth over and above what is build into the products as its normal price. There temporary inducements are offered usually at a time and place where the buying decision is made. TECHNIQUES OF SALES PROMOTION: 1. Point of purchase displays : This is a very effective sales promotion tool. Under this method, product itself or its photography is displayed in the shop points or purchase displays established as link between the products advertised and the product displayed. Those displays are presented in a very suggestive and attractive manner. They tell the customers about the product and its possible uses. 2. Direct mail promotion: Under this method individually typed letters, postcard leaflets, booklets and catalogues charts research building calendars are sent to potential customers. Detailed description of the product, its uses, time of manufacture can be obtained from the subject matter or direct promotion techniques. 3. Merchandising Aids Merchandising aids are given to induce business buyers to purchase goods in large quantities. Manufacturer imparts free training to business buyers on such matters as store layout. They also do all advertising for the business buyers. Their devices help a manufacturer in obtaining the patronage of buyers.

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4. Premiums: Sometimes a customer is given a product free or at a nominal price to induce him to buy the product. Such gifts or commissions are known as premiums. Premiums are generally given in the case of high value consumer durable, because such items are not the customers do not frequently purchase such items. 5. Sample & Free Gifts: Samples and free gifts are also given to introduce a new product or to increase the sales of an existing product. The main objective is create consumer awareness develop brand preference. 6. Product demonstration: Another effective safes promotional tool is the actual demonstration of the product Repres4etatives of manufacturer go form shop to shop and house to house demonstrate the uses of the product to middlemen and ultimate consumers. 7. Quiz of profit and pleasure:

Contents are also organized for the purpose of increasing awareness of a product. Rewards are given to winners. Mainly three devices of sales promotion are used generally. a) Consumers or business user’s sales promotion Activities intended to educate or inform the consumers are included in this type. b) Middlemen and their sales force sales promotion –Activities to increase the interest and enthusiasm of dealer & distributors. c) Producer’s own sales force sales promotion- Activities to increase the production and capacity of their own. PERSONAL SELLING: The goal of all marketing efforts is to increase profitable sales by offering want satisfaction to consumer over the long run. Personal selling is by far the major promotional method used to reach this goal. We can define personal selling “as the personal communication of information to persuade somebody to buy something.” SCOPE OF PERSONAL SELLING There are two kinds of personal selling:a) Across –the-counter selling:Here the customer comes to the sales people. It primarily involves retail stores. b) Outside sales forceIn this type, sales people go to the customers. Here a sales person serve as a company’s link to customers, and is the rep who brings back to the company. Much needed information about the customer. Managing the personal selling function is a matter of 32

applying the three stage management processes (planning, implementation and evaluation) to a sales force and its activities. Sales executive/personal begins by setting sales goal and planning sales force activities. A sales force must be organized, staffed and operated to implement the strategic plans and reach the goals that were set. The main objectives of sales force management for a company is, 1. Prospecting: - Sales representative search for prospects or leads. 2. Targeting: - Sales people decide how to allocate t heir time prospects and consumers. Communication: - They skillfully communicate information about the company s product and services. 3. Selling: - They know the art of sales approaching, presenting answering objections, and closing sales. 4. Servicing: - They provide various services to the customers consulting on their problems rending technical assistance, arranging financing and expending; delivery. 5. Information gathering: - They conduct market research and in telling and work and fill in call reports. PUBLIC RELATION: Public can be defined as: “ A public is any group that has an actual potential interest in or impact on a company’s ability t o achieve its objectives, public relations involves a variety of programmers designed to promote and / or protect a company’s image or its individual products. Public relation is a management tool designed to build pre maintain a favorable image for an organisation and a favorable relationship with its various public customer, prospects, stock holders, employees, and labor unions government. However, unlike advertising public relation need not use the media to communicate its message. Good public relations can be achieved by supporting charitable projects (by supplying volunteer or other resources.) Participating ion community service events, sponsoring athletic teams funding the arts, and disseminating information through exhibits, displays and tours. PUBLICITY:Publicity is any communication about an organization, its products or policies through the media that is not paid or by the organizations. Publicity may be good or bad. So, for making good publicity, these steps can be considered by the managers. a) b) c) Prepare a positive story (or News release) and circulate it to the media. Personal communication with a group, like press conference (as it may be has a news value for media persons.) One – on – one personal communication often called lobbying. With the help of powerful people, they can influence their opinions, and subsequently their decisions to public or target consumers. 33

Public is used to announce new products, publicize new policies , recognize employees , describe research break through , or report financial performance – it the message, person, group or event is viewed by the media newsworthy. Publicity is different form the advertising because it is not” forced “on the audience and the credibility of publicity is much higher than advertising. Publicity is beneficial for the organisation as it; i. ii. iii. Costs lower than advertising or personal selling. Is presented as additional material or news, so it gets greater readership. Is a very short time taking process, so a company can put our news release very quickly when some unexpected event occurs and get the benefit of it . So recognizing the value of publicity, organizations have special units to generate news releases.

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CHAPTER-5 PROMOTIONAL STRATEGIES FOR PEPSI IN LUMBANI BEVERAGES PVT. LTD.

35

Promotional Strategies for PEPSI in Lumbani Beverages Pvt. Ltd.
The two basis objective for carrying out such various promotional activities by Lumbani Beverages Pvt. Ltd. are “to generate more sales as well as to ~ate and maintain an image of its product. “Lumbani Beverages Pvt. Ltd. Carries out its promotional activities as controlled and integrated programmer of communication land material design presents its soft drink to the perspective customers; it also helps in communicating the need of soft drink to facilitate the sale eventually to contribute toward the profit in long range. The tools used by Lumbani Beverages Pvt. Ltd. For fulfilling various purposes of its promotional activities are the following. 1. ADVERTISING:-

The main motive behind the purpose of advertising of the Pepsi Food Pvt. Ltd. is to maintain the brand loyalty. All the bottles of India has to advertise the product Pepsi, 7UP, Miranda, Slice, Team and soda as per the norms and guidance of the Pepsi Food Pvt. Ltd. India. On national basis the Pepsi Food Pvt. Ltd. does, the advertisement on an extensive basis using a number of media. MEDIA OF LUMBINI BEVERAGES PVT. LTD. 1. 2. 3. 4. 5. 6. 7. Painting wall of visible site. Aerial sinage – Glowsinage Board. Boards Poster. Banner Striker Dangler.

Besides the advertisement being carried out by the Pepsi Food Pvt. Ltd. The Lumbani Beverages uses many message, copy etc, when required by them but one single factor which is very important is that the main head line or slogan must remain the same as used by each Pepsi Food (soft drink) company on national level. The main slogan being used by Pepsi food (soft drink) all over India for its cola product has been. The choice of a new generation. But past years, it was dropped and introduced new slogan, “Yahi Hai Right Choice Baby” and then “Yeh Dil Mange More”. These characters have been used to advertisement from 1991 to 2003. 1. 2. 3. 4. 36 1991 Remo Femandis and Juhi Chawala 1992 Kapil Dev with Growl Buddhist 1993 Amir Khan 1994 Md. Azharudin, Sachin Tendulkar and Kambli 1995 Akshay kumar.

5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

1996 Md. Azahrudin and Sachin Tendulkar 1997 Rahul Dravid 1998 Sharukh Khan & Amitabh Bacchan 1999 Govinda & Rani Mukherjee 1999 Sachin Tendulkar & Sharukh Khan 2000 Ajay Jedeja, Kajol for 200 ml. 2001 Amitabh Bachchan & Sachin Tendulkar 2002 Fardeen Khan, Rahul Khanna 2003 Ganguli, Dravid, Harbhagan, Zahir, Kaif, Sharukh khan. 2003 Kareenna Kapoor for Pepsi 200 ml. 2005 Sahrukh Khan for Pepsi 200 ml. 2006 Sahrukh khan, kareena kapoor, Priyanka Chopra

The other advertisement for its product slice is “Jab Gale se Jayada pet Ho Pyasa” Pepsi is “Oye Babli Hai Babli” and Mirinda Lemon is “Jor Ka Jhatkha Dhire Se Lage”. The media channel extensively used by Lumbani Beverages Pvt. Ltd. Are magazines and news papers of national repute? There are many promotional tools used also as Hoarding play cards spectacular and important tool of sales promotion soft Drink is bought on impulses on the space of the moment. Thus the sales are fast when it is brought to people attention. All the displays are done as guided and instructed by the Lumbani Beverages Pvt. Ltd. With given instructions to its distributions who in turn give guidance to the owners of the retail outlets. A good way of putting soft drink of display is (a) Grouping filled bottles together (with the trade mark facing out) on racks where ever possible. (b) Stocking full cases on top of the other space permitting, where people can easily see them. Invisis coolers: In spite of the above method being used for display the best one is to use to the coolers as an equipment of display of soft drinks. The coolers are supplied to the retail outlets by the company it self through the distributors. The company supplies these coolers are reasonable price without changing and profit. The bright color and attractive appearance of the color eve catching and draws attention immediately. Banners, small play 37

cards, cardboard etc are other displayed just at the point where soft drink is being sold suggested positions are either above the retail outlet. It helps in providing the consumers as well as the prospect the place availability of soft drink... The another aspect of display to maintain stock of bottle of soft drink at various important places such as petrol pumps, on the railway platform and the bus stand. II. SALES PROMOTION:The sale promotion is one area of ‘Promotion Mix’ where every company concentrates most to promote its brands. Although sell promotion has short life period yet it is very effective in promoting sale to the greater extent. Sale promotional activities adopted by Lumbini Beverages as follows: A. Premiums (Gifts):- The Company gives different types of gifts to his own consumer with either every bottle or some bottles in its crown. The gifts oftenly comprise cash money, rebates free soft drinks, openers, crown scheme, goods etc. B. POP display and demonstration: - The Pepsi Company involves POP (Point purchase display and demonstration) to promote its brands. Here, the company supplies different kinds of attractive and good pesters, calendars, caps tee to wholesalers and retailers to promote its brand through POP display and demonstration. C. Discount: - Time to time and is peak season (i. e. March _September) company announces discount for wholesalers, retailers and consumers also. D. Scratch Card: - Scratch card is one of the very effective and important methods of the sale promotion adopted by the Pepsi. The company organizes scratch card offer at every retail outlet to promote sale. Here, with every bottle of Pepsi brands, a scratch card is given to buyer. Every card has some hidden prizes. The prize is appeared after Rubbing. The consumers are given the prize associated with appeared prize. E. Dealers Sales Contest: - Another method of sales promotion is being used, by Lumbani Beverages Pvt. Ltd. Through its distributions is to conduct dealers sales contest during the peak season i.e. During April to July. If the dealer are given prizes in the form of soft drinks. In the contest at first, dealer is categorized by their performance and then each distributor is fixed a target of minimum sale for each category to which every dealer accosting its category has to achieve during the contest period. The dealer achieving highest sales order and above the target set is given the awards as under the order prize. Announces all 1st Prize 2nd prize in term of number of free cases of soft drink. Free Bottle Scheme: - This scheme is scheduled for retailers only. Retailer avail the benefits of free bottle on the purchase of prescribed number of carats of soft drinks. The number of free bottle depends upon the policy of the company and prevailing circumstances of the market. This scheme is highly fruitful in motivating the retailers for 38

increasing the sale of Pepsi products. Almost all the retailers are of the same view that, like Coca-Cola, Pepsi should also launch free bottle scheme on regular day basis. HIT SHOT under the crown scheme U. T. C.:- This scheme was scheduled for retailers as well as consumers. Under this scheme one has to collect the Pepsi Hot shots 30 collectible crown with exclusive 15 Amitabh Bachchan and 15 Sachin Tendulkar pictures from the last two decades, spanning their life time of achievements. Under this loads of Prize to be won prizes included t-shirts, posters, photo-frames and Autograph Books. The Crown schemes on lemon Mirinda U. T. C.:- This scheme was scheduled for retailers as well as customers. This scheme was y limited only on the Mirinda, Lemon flavors. Prizes worth Rs. 2, Rs. 5, Rs. 10, Rs. 1DO, Rs. 1000 to be won under this scheme. Scheme of Cinema Ticket: - This scheme was scheduled for retailers only. Retailers avails the benefits of free Cinema Ticket with “Pepsi Chips & Samosa” in Cinema hall on the purchase of prescribed no. of crates of Pepsi. Scheme of free Gift: - Nowadays this scheme becomes more popular among the retailers. This scheme also for retailers & they avails the benefits of this gift like “Camera, Wrist Watch, Casserole” on the purchased to purchased to prescribed no. of Carats of Soft Drinks. F. Special Event Market The retailers at special event spots like picnics, festivals, and mi cricket place the banners and stall of Pepsi Food Products. It helps in promoting the sales as well as in creating an image of product.

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ADVANTAGES OF SALE PROMOTION 1. 2. 3. 4. Sales promotion makes an immediate effect on sales. It stimulates positive attitude towards the products. It gives an extra incentive to the Retailers/Consumers to make a new purchase. Measurement of the effectiveness of Sales Promotion is easier against the other promotional methods. 5. It gives extra incentive to take immediate action now rather than later. 6. It has flexibility and can be used at any stage of a new product introduction. Sales promotion is a very effective in this regard. 7. Products are becoming standardized and similar and so need increased support of nonprice factors of which sales promotion is an important. LIMITATIONS OF SALES PROMOTION 1. Sales Promotion has temporary and short life, span. Sales promotion alone can’t build up brand loyalty. 2. Sales promotions are only supplement, devices to supplement selling efforts of other promotion tools. 3. They are not recurring in their use. They have seldom reuse value. 4. Too much sales promotion may affect adversely the brand image, suggesting its lack of popularity of overstocking by a company. 5. Adverting agencies accord law status to sales promotion so that they may be trained for more creative jobs. 6. Sales promotions are ineffective in lack of proper planning and Research for sales promotion. III. PUBLIC RELATION AND PUBLICITY: As Public relation is a management tool designed to favorably influenced attitudes toward an organization, its products and polices where as publicity is any communication about an organization, its product policies through the media which is not paid by the organization. But beyond this, Pepsi goes for “Marketing Public Relation (MPR) where the company directly support corporate I product promotion and image making. This is the responsibility make for marketing division rather than public Relation department. To promote its product through Marketing Public Relation, Pepsi has various tools. Organizing Events: - Pepsi organizes, sponsors and co-sponsors various gains and sport events to get publicity, through electronic and print media. These games may be played at local, national or international level. Besides this the company also sponsors various functions and indoor games at local levels etc. Music and Dance Programme: - Time to time, Pepsi sponsors various music and dance programs in different cities across the country. This type of events organized by Pepsi has become very helpful in: o Building the corporate image favorable in public. o Boosting sales force and dealer enthusiasm. They feel proud to speak about its products. 40

o Influencing specific target market and bringing interest in product category IV. PERSONAL SELLING: Conceptually, there is not any place for personal selling in soft drink industry. It falls into illegal trade. However Pepsi adopts surrogate nature of personal selling. As soft drink allows the company to communicate frequently and directly with wholesalers and retailers than consumers. For clear and reliable communication, the company appoints “Territory Sales Executive” in every market segments. The main work of Territory Sales Executives is to communicate with wholesalers and retailers of their concerned market segments on regular basis. Besides, they also play the watchdog in the market. They observer brand position in the market and compare it with competitor’s brand and place the report to Area Sales Manager. They also see that their does not occur much fluctuation in the supply of Pepsi’s brand in the market and the products are available to consumers with ease especially in the peak season (March to September). The distributors are also involved in personal selling. For this, they appoint salesman as per the instructions and guidance given by the company. The company provides the training facilities to salesman when required by the distributors. For good and effective merchandising a salesman performs following function such as. 1. The salesmen are one of the best chains to cultivate the goodwill to all the selling work. 2. He cheeks the stocks because a dealer cannot sell soft drinks to the consumer. He maintains a plan and fulfils the demand through the requirement. A salesman does not ask the dealer how much they want. 3. He tells his dealers about a method of refrigeration soft drinks. Because to sales more soft drinks, it should on sale, the way of people like it ices cold. Cooling brings out the delicious unique flavour thus the salesman makes sure that all dealers always use the knowledge of refrigeration on ice refrigeration. 4. He tells his dealers about the method and good way of putting soft drink on display. INCENTIVES A. SUGGESTION SCHEME AWARDS If any body gives any suggestion regarding the product quality promotional activities the company awards prizes to the best suggestion either in cash or in kind. B. MAN OF THE MONTY For increasing the sales the company also has an arrangement of giving the first prize who achieves the target successfully.

C. MAN OF THE YEAR 41

The company also gives an annual prize to the best performer in the sales of the products over the whole year.

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CHAPTER – 6 ANALYSIS OF THE DATA AND ITS INFERENCES

43

ANALYSIS OF THE DATA AND ITS INFERENCES
The main slogan been used by Pepsi food (soft drink) all over India for its cola product has been. The choice of a new generation. But past two years, it was dropped and introduced new slogan, “Yahi Hai Right Choice Baby” and then “Yeh Dil Mange More”. These characters have been used to advertisement from 1991 to 2003. The other advertisement for its product slice is “Jab Gale Se Jayada Pet Ho Pyasa” Pepsi is “Oye Babli Hai Babli” and Mirinda Lemon is “Jor Ka Jhatkha Dhire Se Lage”. Sales Promotion Sales promotion and publicity when combined with advertising and personal selling programs really add up to more than the some of the parts sales promotion is that some thing extra (1+1=3). It can arouse enthusiasm, create a buying mood or spark an immediate reaction from consumer, dealers, and hiss sale person. Many sales promotions value added to an offer to encourage some obvious be habitual response. Sale promotion is often through as special selling effort to accelerate sales point of purchase displays give a real pay off. Sales raising by 25 to 50 P.C or even more. Sales promotion has dial adjectives. A. To increase buying response by ultimate consumer and B. To increase selling efforts and intensity by dealers as well as sales personnel.

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1. Awarness Pepsi Mirinda 7Up Slice & Soda 100% 100% 100% 75%

100% 80% 60% 40% 20% 0%

100% 100% 100% 75% Pepsi Mirinda 7Up Slice & Soda

Findings All brands of Pepsi are well known among the consumers. Slice and soda is less popular product of Pepsi as compared to others.

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2. Advertising Different advertising activities practiced by Pepsi have great impact in consumers. Following data show the impact. Affected Indifferent 70% 30%

30%
Affected Indifferent

70%

Findings The percentage of persons affected is 70% and no. of persons not affected by advertising is 30%.

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3. Personal Selling Consumers there is not any place for personal selling in soft drinks industry however Pepsi adopts surrogate in nature as it is directed on retailers rather than consumers. Territory Sales Executive visits the retailers frequently Visit of TSE boost the confidence of retailers to go for a sale Pepsi brands. Retailers who are affected Affected Indifferent 60% 40%

40% Affected Indifferent 60%

Findings There are 60% percent of the retailers who have affected from personal selling and 40% percent of retailers have no effect on them.

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4. Public Relation and Publicity Pepsi organizes and sponsor various types of Games, Sports, Music and Programmers etc. as tools of marketing Public Relation. These activities present good and positive image among potential consumers. During survey it is found that due to attachment of Pepsi with such activities, consumers feel glad to have Pepsi or its other brands. The extents to which buyers are affected with publicity and public relation are shown below:Greater Good Some Indifferent 60% 20% 10% 10%

60% 50% 40% 30% 20% 10% 0%

60%

Greater Good 20% 10% 10% Some Indifferent

Findings 60% of the respondents say that the relations o\f the company with the consumer is best, while 20% says it is good, and 10% are having no ideas.

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CHAPTER – 7 CONCLUSION AND SUGGESTIONS

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CONCLUSION AND SUGGESTIONS
CONSLUSION From the data analysis and survey conducted by me I arrived at the following conclusion. 1. Pepsi has the entire flavor i.e. Lemon, Orange, Mango in the market and its market share is comparatively more than Coke. 2. The majority of the retailers deal in all brands of Pepsi and Coca-Cola.

3. One of the major drawbacks of Pepsi products is that all flavors do not reach at each and every retail outlets but competitors products do reach that is why competitor enters in to Pepsi exclusive outlets. 4. pets. The major problem faced by the distributor is the shortage of supply particularly

5. Distributor functions just as order takes; they should contribute me and communicate to the retailers. 6. It should be checked that whether our products is reaching to the outlets timely and regularly or not. 7. Although the Visit-cooler, Sign board/Display rack and Glass strength provided by Pepsi are more than Coke but still there are number of retailers, who are either not having these or others have provided them. 8. There is irregularity in the supply of Visi-coller, some retailers, which sell more are not provided Visi-cooler, some retailers, which sell more not provided Visi-cooler, while some retailers, which sell less are provided visi-cooler 9. Some of the Visi-Cooler provided by Pepsi is not functioning properly, complaints, are entertained after a long time. 10. Most of the retailers are in need of board but not provided by the Pepsi Company. 11. Most of the retailer’s especially small retailers have complained that the sales man does not in form about any sales promotional scheme. 12. The big retailers of Pepsi do not maintain the Visi-Cooler and dictate their own terms and conditions.

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SUGGESTIONS
Lumbini Beverages Pvt. Ltd. should introduce some changes in the Distribution logistics so that it can improve the service level and thus increasing customer satisfaction and sale. The following factors I found to be worthy for consideration by the management:1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. The company should establish at least a warehouse in each and every district headquarters for easy delivery or soft drinks. The company can also open its own warehouse in various districts. Lumbini Beverages Pvt. Ltd. should follow a required inventory decision so that average stock can be balanced in the peak seasons. Tricycle can be installed at various places like public part during the peak house, important chowks and in the city’s commercial center. As these tricycles are targeted at the tired and thirsty consumer on the road and other places, care should be taken that soft drinks in the ice-box are always chilled and ice readily available. Like Frooty & Tree Top, Pepsi food Pvt. Ltd. should also introduce tetra pack (disposable pack) for its various brands. Company should also introduce fountain Pepsi in Muzaffarpur town. Marketing division should also give more attention in selling less popular band like Lemon Miranda, Slice & Soda. Time to time survey about the company’s strength and weakness is very much essential so that it can improve its service & quality. Company should, try to project quality superiority into the minds or customer; it will last long and will pay for ever. Company should send executive at regular intervals to those areas where new dealers are created and suggesting them the selling tactics. Company should also give more attention to the old dealers to check whether they are performing well or not. Company should also start scheme for consumers so that sale is increased, like giving coupon on every cap of Pepsi product etc. Company’s sales promoters are not performing their job seriously, so it is very essential to arrange some training for sales personals. With the increase in price of Petrol/Diesel the distributors are incurring more expenses during the transportation and with the listed commission by Pepsi Manufactures it becomes very hard to cover their expenses after offering their delivery services to retailers. So the management should apply the total cost produces the best relationship between costs and profits for the entire distribution system.

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BIBLIOGRAPHY
Books 1. 2. 3. 4. Philip Kotler Philip Kotler and Armstrong R.C. Kothari Station, J. William Marketing Management Principles of Marketing Research Methodology Introduction to Marketing

Magazines 1. 2. Business Today and Business India

Newspapers 1. 2. Web Site 1. 2. 3. 4. http://www.pepsizone.com http://www.com/currentcompany_info/iondex.html http://www.pepsi.com/current/diet_pepsi/product.html http://www.pepsizone.yahoo.com Times of India and, Hindustan (Hindi Edition)

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QUESTIONNAIRE
Name ------------------------------------------------------------------------Address----------------------------------------------------------------------Contact No. -----------------------------------------------------------------1. Monthly Sales (in Rs.) (a) Less than 5000 (c) 10,000 to 15,000 (b) Between 5000 to 10,000 (d) Above 15,000

2. Number of C/s-crest sold per month of soft drinks. (a) 0 to 50 carets (c) 100 to 150 carets 3. Which type of outlets? (a) General Store (c) Betal Shop (b) Groery (d) sweet Shop (b) 50 to 100 carets (d) 150 to 200 carets

4. Which brand of soft drinks is available in the outlet? (a) Pepsi Cola (c) Mirinda (L) (b) Mirinda (O) (d) 7UP

5. When comes to your shop your outlet which brand of soft drinks does he/she demands? (Rank them) (a) Pepsi (b) Coca-Cola

6. Which company soft drink is demanded most? (a) Pepsi 7. Which factors effect the most? (a) Advertisement (c) Presence (e) Prince 8. Any other suggestion for Pepsi? -----------------------------------------------------------------------------------------------(b) Scheme (d) Taste (f) Others (b) Coca-Cola

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