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Summer Training Project Report On Working Capital Management

Submitted for the partial fulfillment of the Award


of

MASTER OF BUSINESS ADMINISTRATION DEGREE


(Session:2012-2013)

SUBMITTED BY
Pankaj Roll No: 1103270108

UNDER THE GUIDANCE OF


Mr umesh sisodia School of Management ABES ENGINEERING COLLEGE, GHAZIABAD

AFFILIATED TO MAHAMAYA TECHNICAL UNIVERSITY, NOIDA

DECLARATION
I PANKAJ KUMAR hereby declare that the present Summer Training Project Report entitledCOMPARATIVE ANALYSIS OF SALES OF AQUAFINA AND OTHER PURIFIED MINERAL WATER (noida) is based on my training in PEPSICO INDIA HOLDING PRIVATE Ltd. It is an original and authentic work done by me, and is based upon the study conducted by me. The project was undertaken as a part of the M.B.A. programme of MTU

(PANKAJ) MBA IIIrd SEMESTER

ACKNOWLEDGEMENT

I feel an immense pleasure in taking this opportunity to express my sincere indebtedness and deep gratitude towards our respected faculty guide Dr.S.S.Rathore, for encouraging me to work on this topic and being a constant source of inspiration and guidance. I express my sincerest thanks for his constant encouragement, meticulous guidance, constructive criticism and invaluable counsel throughout the conduct of this study. Further I am highly grateful to Mr. Dharmendra Raj, (ADC) of PEPSICO INDIA HOLDING PVT Ltd. who gave their full support and cooperation in getting good understanding of the topic chosen. I am also thankful to the of our staff of college of computer Lab which gave me the necessary cooperation for accessing the secondary data.

(PANKAJ) MBA IIIrd SEMESTER

CONTENT

PAGE NO.

CHAPTER 1:1. INTRODUCTION 2. OBJECTIVE OF THE STUDY 3. SCOPE OF THE STUDY

CHAPTER 2:4. METHODOLOGY : LIMITATIONS

CHAPTER 3 :DESCRIPTIVE STUDY ON SUBTOPICS

CHAPTER 4 :DATA ANALYSIS AND INTERPRETATION

CHAPTER 5:CONCLUSION AND SUGGESTIONS

CHAPTER 6:BIBLIOGRAPHY

CHAPTER 7:ANNEXURE

CHAPTER 1 INTRODUCTION

Introduction
Summer training is a part of MBA programme. It is very important for every student who is doing MBA. It is important because during summer training the student interacts with an organization and he learns how the employees work in an organization and he also learns how an employee should behave with each other. He learns all the things like the way of sitting, the way of talking and the way of impress to others, which is very important for every MBA student, the summer trainee is going to be a manager in an organization.

So being a MBA student I did my summer training in Pepsico India Holding Pvt. Ltd. in Noida. A project was given to me and the topic was COMPARATIVE ANALYSIS OF SALES OF AQUAFINA AND OTHER PURIED MINERAL WATER. In my project I was suggested to do the analysis of total sales of Aquafina in comparison to other purified mineral water and was also suggested to make a good project report so that it can be helpful for the organization

About PepsiCo

PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $35 billion and more than 168,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories.

P.M. SINHA, CEO, PEPSICO: By June


2001, Aquafina which was launched only last year account for 7 per cent of PepsiCo's revenues in the country

Pepsico entered India in 1989 and in the span of a little more than a decade, has grown to become the countrys largest selling food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. The group has built an expansive beverage, snack food and exports business and to support the operations are the groups 37 bottling plants in India, of which 16 are company owned and 21 are franchisee owned. In addition to this, PepsiCos Frito Lay snack division has 3 state of the art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. Our commitment to living by this vision every day is visible in our contribution to our country, consumers, farmers and our people

ORGANIZATIONAL VALUES

Our Commitment

Our Commitment
Our values reflect our aspirations - the kind of company we want Pepsico to be. We express our values in the form of a commitment. Our commitment is : Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether todays actions will contribute to our future. It is about growth of people and company performance. It prioritizes making a difference and getting things done. Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while being consistent with the processes that ensure proper governance and being mindful of the rest of the companys needs.

Responsibility and Trust form the foundation for healthy growth. Its about earning the confidence that other people place in us as individuals and as a company. Our responsibility means we take personal and corporate ownership for all we do, to be good stewards of the resources entrusted to us. We build trust between ourselves and others by walking the talk and being committed to succeeding together.

Guiding Principles
This is how we carry out our commitiment. We must always strive to: Care for customers, consumers and the world we live in. We are driven by an intense, competitive spirit in the marketplace, but we direct this spirit toward solutions that achieve a win for each of our constituents as well as a win for the corporation. Our success depends on a thorough understanding of our customers, consumers and communities. Caring means going the extra mile. Essentially, this is a spirit of growing rather than taking. Sell only products we can be proud of. The test of our standards is that we must be able to personally endorse our products without reservation and consume them ourselves. This principle extends to every part of the business, from the purchasing of ingredients to the point where our products reach the consumers hands. Speak with truth and candor. We speak up, telling the whole picture, not just what is convenient to achieving individual goals. In addition to being clear, honest and accurate, we take responsibility to ensure our communications are understood. Balance short term and long term. We make decisions that hold both short-term and long-term risks and benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable growth. Win with diversity and inclusion. We leverage a work environment that embraces people with diverse backgrounds, traits and different ways of thinking. This leads to innovation, the ability to identify new market opportunities, all of which helps develop

new products and drives our ability to sustain our commitments to growth through empowered people. Respect others and succeed together. This company is built on individual excellence and personal accountability, but no one can achieve our goals by acting alone. We need great people who also have the capability of working together, whether in structured teams or informal collaboration. Mutual success is absolutely dependent on treating everyone who touches the business with respect, inside and outside the company. A spirit of fun, our respect for others and the value we put on teamwork make us a company people enjoy being part of, and this enables us to deliver world-class performance

Pepsico Product Line:Providing consumers with balance and choice PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi , 7 UP, Mirinda and Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up Light, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks Tropicana and Slice. Our local brands Lehar Everess Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brands. PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market and was amongst the first companies to eliminate the use of trans fats and msg in its products. It manufactures.Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional namkeen snacks under the Kurkure and Lehar brands. Quaker Oats, Lehar Lites,low fat and roasted snack options enhance the choices available to the growing health and wellness needs of our consumers.

Partnership with farmers


Through its major agri-initiatives in Punjab, Maharashtra, U.P. and West Bengal, PepsiCo has laid down the ground work for the long term economic and social prosperity for farmers in the country. PepsiCos pioneering contract farming

Initiatives across the country and expansive citrus nursery in Punjab have generated sourcing tie-ups with farmers and introduced them to new technologies in citrus farming. Along with capacity building, knowledge sharing and emphasis on value enhancement, the initiatives have led to better price realization for thousands of farmers across the country, improved the prices and enhanced the quality of their crops which include basmati rice, tomatoes, chilli, potatoes, peanuts and corn. PepsiCo India generates exports of more than Rs 2,600 crore annually making it one of the largest MNC exporters in India. Its export business consists of three categories agri business, commodities and Pepsi system sales.

Replenishing water and recycling waste


PepsiCo India supports many sustainable projects to empower and serve the society it works in. The conservation efforts in our plants reflect our commitment to promote rain water harvesting, water conservation, recycling and the reduction of effluent discharge. We also work closely with community members in our Zero Waste Centre in Tamil Nadu. In addition to this initiative which provides employment to vital sections of society, we have established PET recycling supply chains to further reduce solid waste.

Enriching and Empowering Lives


The companys diverse work environment is a reflection of the importance that it places on its people. PepsiCo continues to create a diverse and inclusive work environment which embraces people from different backgrounds. To help our employees, their families and all our associates join the fight against HIV; PepsiCo has worked with the ILO to implement an extensive HIV prevention and awareness programme. The organizations focus on people is extended to communities across the country. The company has developed a seaweed cultivation programme in Tamil Nadu and has dedicated resources to administer medical camps in villages, provide computers in rural schools and create opportunities for Youth and women affected by the tsunamis through its Livelihood Resource Centre in Nagapattinam. Our Community Outreach Programmes address issues of health,

sanitation, and the provision of clean water to rural communities and reflect our strong commitment to help make tomorrow better than today.

1965 Milestones

PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. FritoLay, 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. The new company reports sales of $510 million and has 19,000 employees.

Major products of the new companies are:


Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheeotos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961).

Mountain Dew launches its first campaign "Yahoo Mountain Dew ... it'll tickle your innards."

DRINKING WATER IN INDIA:

Water Business Thrives Amidst Scarcity The all-India market for packaged water is between $145 million (Rs. 8 billion) and $21 million (Rs. 10 billion) and is growing at the rate of nearly 40 per cent per annum. 1 Even though it accounts for only 5 percent of the total beverage market in India, branded bottled water is the fastest growing industry in the beverage sector. 2 While the single largest share in the mineral water market might still belong to an Indian brand -- Parle's $52 million (Rs. 2.5 billion) Bisleri brand has a 40 percent share -- multi-national corporations are not far behind. Nestle and Danone are vying to purchase Bisleri, and Pepsi's Aquafina and Coke's Kinley brands have been extremely successful in edging out many of the small and medium players to buy-outs and exclusive licensing deals. In less than two years since its launch, Aquafina has cornered 11 percent of the market and Kinley has almost a third of the market. News reports indicate that other MNCs like Unilever are also eying the market. Currently, Kinley is being manufactured in 15 bottling plants across the country and according to Coca-Cola India President and CEO Alex von Behr; Coke had invested Rs. 4,000 crore in India between entering the market in 1993 and December 2001. pure water business.
3

Behr says that

Coke expects a significant portion of our turnover to be accounted by

Pure drinking water is a luxury in India today. Most water sources are contaminated; water borne diseases such as diarrohea, dysentery, typhoid, jaundice and gastroenteritis are legion. Even the municipal water supply is not free of contaminants like pesticides, and heavy metals. People either boil water to drink it or install purifiers.Of late; they have also turned to bottled water available in the open market: this water is perceived as safe. Given human dependence on water, we cannot afford to be careless about the kind and quality of water that we drink. Various top brands like Bisleri, Kinley make claims about the purity of their Mineral water and advertise their water as the safest. But the source of water for different bottlers is bore-well (groundwater).though the given the quality of water in and around Gorakhpur is not that much polluted but in this hygienic world people are very careful about their health.So now people of these places are also using the bottled Purified water. Since exposure to pesticides through drinking water has potential health Effects, it is very necessary assess the quality of bottled mineral water in terms of pesticide levels. Do various brands conform to standards specified by the Bureau of Indian Standards (BIS) and Prevention of Food Adulteration Act, 1954 (PFA)? How do the brands and the norms themselves fare when compared to internationally accepted drinking water norms, such as that of the World Health Organization or the US Food and Drug Administration for pdrinking water? Since we are doing comparative analysis of Auqafina and other purified drinking water, we have taken the top four brands such as Bisleri (Aqua Minerals Ltd), Bailley (Parle Agro Pvt. Ltd), Aquafina (Pepsico India Holding Pvt Ltd) and Kinley (Hindustan Coca Cola Beverage Pvt. Ltd) and other less popular brands being sold in Gorakhpur. The bottles were randomly purchased. They were then analysed for 12 organochlorines and 8 organophosphorus pesticides using a method called gas chromatography (GC). The testing process was based on the United States Environment Protection Agency testing procedure for pesticides in drinking water. In the BIS drinking water standards, the desirable limit for pesticides is given As absent. The permissible limit, in the absence of any other alternate source is given As 0.001mg/l (1g/l). The BIS standard for packaged drinking water IS 14543:1998

And Natural Mineral Water IS: 13428:1998 covered under the relevant PFA states that pesticide residues should be below detectable limits when tested in accordance with the relevant methods. However, when tested for organochlorine pesticides and organophosphorus pesticides, the water bottled by the 5 top brands and other less popular brands were found to be contaminated with pesticide residues. Among the organochlorines, HCH and DDT were frequently detected. Gisomers of HCH (Lindane) were detected in 94 per cent of all samples. DDT was detected in 70.6 per cent of the samples. Metabolites of DDT like DDE and DDD were also detected. Endosulfan was present in 8.8 per cent of the samples. Among the organophosphorus pesticides, Malathion and Chlorpyrifos were most frequently detected: respectively, in 85.3 per cent and 82.4 per cent of the samples. People switch over from tap water to bottled water because they think it is not contaminated. The CSE laboratory test shows otherwise. Bottled water should not be considered a sustainable alternative to tap water. Source monitoring, reduction in use of pesticide and effective treatment seems to be the best choice for keeping a check on pesticide concentration in water.

STANDARD OF MINERAL WATER


Keeping in mind consumer interest and public health, the Union Ministry of Health and Family Welfare issued a notification on September 29, 2000 for all packaged water manufacturers and traders, according to which ISI certification from Bureau of Indian Standards was made mandatory. According to BIS about 517 packaged water companies obtained the BIS certification as per IS 14543:1998 for packaged drinking water (other than packaged natural mineral water). Six in the natural mineral water Category has obtained the mandatory ISI certification for packaged Natural Mineral Water as per IS 13428:1998. Although BIS has provided standards for various physical and chemical parameters in the drinking water, these standards do not give maximum residue limits (MRL) for individual pesticides. The standards for total pesticides are also not quantified. The limit below detectable level is vague and ambiguous. 3 Since pesticides are harmful to human health they have acute or immediate effects resulting from short-term exposure, like nausea, lung irritation, skin

Rash, vomiting, dizziness, and even death and chronic effects that occur long after repeated exposure to small amounts of a chemical which include cancer, liver and kidney

Pepsi India wants more of Indian market


The company will test-market and launch its drinking water, Aquafina, in Mumbai before taking it to other centres. Aquafina will be retailed in 750-ml bottles for Rs 10. It will be made only at Roha in Maharashtra. Pepsi continues to be bullish on India with its plan to invest around Rs 400 crore in the next four years. According to Mr PM Sinha, chairman, Pepsi India Ltd., the company will concentrate more on backward integration, as it wants to have joint ventures and franchisees to set up six to seven new bottling lines every year. At present it has 40 bottling lines in the country. Pepsi owns 16 units and the rest are owned by franchisees. Pepsi plans to set up seven new PET bottling plants by the year 2000, which will supplement the existing eight plants in Mumbai and Calcutta. Plans are on to add 100,000 outlets every year to its current network of around 600,000 across the country. However, the company may set up other plants elsewhere later.

Mr Sinha said that Aquafina offers a quality that many known brands cannot offer. The company has gone through quality control measures to provide the best product. Aquafina will be available through Pepsi's normal distribution channels. At present 60 per 250-ml cent of Pepsi's glass bottles outlets are sell replaced mineral by PET water. bottles. According to Mr Sinha, PET bottles are a success story and it will not be long before the returnable Pepsi will continue its practice of operating through a combination of its own bottling units and units belonging to its franchisees. Mr Sinha said, "We feel Pepsi can fruitfully cash in on the benefits offered by the franchisees through their contacts and employees in the long run".

The company also plans to renew its thrust on exports. It exports chilies, peanut butter and ginger.

The politics of convenience


Ever since water was moved from the socio-cultural domain of community control to the techno-economic sphere of bureaucratic management, it seems to have gone from being seasonally scarce to being chronically unavailable. Although part of the problem lies in rising demand from an increasing population, mismanagement remains the core issue. For the ruling elite, water scarcity is, quite simply, a political tool. But governments have rarely attempted to diagnose and solve the crisis. With water under the full jurisdiction and control of the government, through a myriad ministries and institutions, communities have little idea about who actually is in control. Water: Draupadi with many husbands Though water is constitutionally a state subject, in many ways it has stayed a central one. While the Constitution mandates panchayats to control and manage water at the local level, Indias water policy reflects centralisation. Water remains under the control of a number of ministries and institutions, a la Draupadi Ministry/Institution Ministry of Water Resources (MoWR) Ministry of Rural Development Ministry of Urban Development Ministry of Power Ministry of Environment and Forests (MoEF) Ministry of Agriculture Ministry of Industry Central Pollution Control Board Portfolio Principal agency responsible for all water in the country Watershed development and water supply in rural areas Drinking water supply in urban areas Development of hydropower without any mandate on water Pollution from power plants Quality of surface and groundwater Providing resources for irrigation of agricultural lands Planning and development of water resources for industry Monitoring and regulation of industrial water pollution

Central Ground Water Authority Water Quality Assessment Authority

Regulation of quantity and quality of groundwater Apex body set up by MoWR and MoEF, yet to start functioning

This multi-ownership has helped successive governments evade crucial governance issues, as no one is willing to risk opening the debate on rationalisation of water tariff at the cost of losing an electoral base. Consequently, inefficient municipalities have been stretched to their limits, with mounting debts. These civic bodies are on the verge of collapse. The municipality in the picturesque town of Simla is a case in point. Supplying potable water at an unbelievable rate of Rs 1.80 per kilolitre (100 litres) to households, and Rs 6 to the hotel industry, the municipality finds itself in dire straits. The actual cost of this heavily subsidised water is Rs 20 per kilolitre. No wonder annual losses amount to Rs 25 crore every year. Its the same for every civic body whose losses have been allowed to accumulate over decades. The result: erratic and unreliable water supply, as demand outpaces supply. Its this apathy that has fed the packaged water industry -- the bottled water business is growing at around 30-35%. Municipalities are not only overstaffed they are also inefficient. Consequently, water cess recovery is poor and water pilferage carries on unattended. We need strong political will to reduce staff, cut operational costs and increase efficiency.

Policy of contradictions
Launching the National Water Policy 2002, then Prime Minister Atal Behari Vajpayee said: The cornerstone of the new National Water Policy should be an explicit recognition that water is a national resource andthe policy should also recognise that

the community is the rightful custodian of water. It seemed as though the communitisation of water resources was on the cards. In reality, though, it was just the opposite. Following the adoption of the policy, the newly-formed state of Chhattisgarh sought to privatise water supply from a semiperennial river, the Sheonath. This unprecedented move opened up possibilities for the privatising of natural resources, unheard of in a country that had always insisted on restoring community rights over resources. Though the prime ministers statements were laudable, the policy document sought to pursue divergent interests. By emphasising private control and by declaring water an asset, the policy in effect questioned a fundamental right of the people. The policy paper did not explicitly mention the protection of interests of poor and marginalised areas. No wonder then that in order to woo foreign direct investment, the government of Kerala has been granting private investors easy access to its groundwater resources. Since the policy and the law are unclear about who the primary beneficiaries of groundwater are, the water bureaucracy is allowed a free hand in making profits through private investment. The then prime minister had also said: Depletion of groundwater resources, on which millions of rural families depend for their drinking water needs as well as irrigation, Continues unabated. Surprisingly, even after years of deliberation there are no clear directions on the ownership and restrictive exploitation of groundwater in the country. Despite a change in government at the Centre, the principles within the policy appear to have been reinforced. Crucially, the fact that centralization -- as seen in recent initiatives like river linking, Sethusamudram etc -- is in direct contravention of constitutionallymandated decentralization through the 73rd and 74th constitutional amendments has gone largely unnoticed.

The subsequent enactment of water policies by respective state governments reflects a neglect of the rural poor at the hands of the urban elite. The appropriation of surface and groundwater resources to meet the needs of growing urban populations has already led to violent conflicts in Rajasthan. Is the water bureaucracy oblivious to such trends, or is it pursuing a course over which it has little control? Crucially, the resource-constrained water sector is heavily dependent on leading lenders like the World Bank and the International Monetary Fund that have full cost recovery and reduced public control over water resources as their guiding principles. Ironically, the principle of full cost recovery and reduced public control has been the cause of growing civil unrest in countries like Bolivia, the Philippines, Paraguay, Argentina and Ghana. The privatization of Delhis water supply is being contested on similar grounds. Let us read the writing on the wall.

Future imperfect
Where does all this lead us? Can the core issue of effective water management be addressed in the current political scenario? Are there any mechanisms within the government that provide space for mainstreaming prevailing social concerns? The central issue is re-defining water governance. Unless alternative institutional arrangements are examined along with the dilution of control of existing institutions, the situation is unlikely to improve. In the context of groundwater, the real challenge will be to create management principles that address ecological, equity and sustainability concerns. There is also the need to identify, strengthen and provide legal validity to local institutions that ensure equitable and sustainable use of water, within ecological confines. Institutional reforms, differential water pricing and water conservation at all levels are pivotal issues that must be addressed in order to tide over the present scarcity and the emerging threat of conflicts over water.

Taxation:
The Kerala state government has classified the bottled drinking water under the category of luxurious items in the VAT regime, charging 20% tax. And this system has dealt a heavy blow to the packaged water manufacturers in Kerala, says Mohammed, the officebearer of the Federation of All India Packaged Drinking Water Manufacturers' Association. No other State imposes such a high rate of tax, according to him. In the neighboring Tamil Nadu, the tax is 10%.

Criticism and regulation


Bottled water is a successful product, available throughout the world, but it and the behaviors it fosters are the subject of vocal criticism. This criticism primarily falls into environmental, economic, and health categories. Some say that bottled water is just tap poured out into a bottle.

Multinationals offer stiff competition to the packaged water manufacturers. Some of these companies allegedly indulge in unethical practices in a bid to maintain upper hand in business. The manufacturers have to guard against fraudsters who supply substandard product in empty bottles of established companies.

It is mandatory for bottled water units to conduct a series of tests to conform to more than 50 parameters specified by the authorities. The consumer too has to be careful against duplicates. In comparison to global standards India's bottled water segment is largely unregulated. Safe water is rated with a different yardstick in different countries. In India, the aspect has been overlooked for long. Indian consumers tend to believe that any bottled water is safe water. This may not be the case.

One of the key parameters separating bottled water from tap water is 'Total Dissolved Solvent' (TDS), which measures hardness. TDS should not be more than 170 ppm (parts

per million) for bottled water whereas it's sometimes as high as 1200 ppm for tap water. Also, 'safe' and 'pure' bottled water are different from each other. Safety is relative whereas purity has to be absolute. Natural purity comes from water at sub-soil level that flows through rock formations.

The International Bottled Water Association (IBWA) has appointed an independent inspection body to test and evaluate products, systems and services. Members affiliated to IBWA have to undergo a rigorous certification procedure on regular basis. However, the association membership is not mandatory. The emphasis is more on voluntary participation of member companies, which hampers it's functioning.

There is a need for major players to adopt good manufacturing practices (GMPs) voluntarily. Unfortunately, the quantitative growth in the segment has not resulted in a corresponding qualitative growth, and remains a major area of worry.

About Bottle
More fossil fuels are used in packaging the water. Most water bottles are made with polyethylene terephthalate, a plastic derived from crude oil. Worldwide, some 2.7 million tons of plastic are used to bottle water each year. Meanwhile, communities from near which the water came in the first place risk running dry. More than 50 Indian villages have complained of water shortages after bottlers began extracting water for sale under Coca-Cola Co.'s Dasani label.

Bottled water has become an essential component of modern life. It is the main source of drinking water for many among the urban community. The demand for purified bottled water has been on a steady rise in recent years.

Drink water
While governments and the private sector work to find solutions for the provision of clean drinking water in the underserved communities around the world, bottled water may be the most efficient and cost effective means of delivering clean, sanitary drinking water to communities in need. Water shortage around the world and particularly in third world countries has opened new avenues for bottled water industry. If we compare the growth and status of Indian bottled industry with western or Asian market, we are far behind in terms of quantum, infrastructure, professionalism and standards' implementation. Water, of course, is essential to human health. Drinking enough water to replace whatever is lost through bodily functions is important. But surveys indicate that most of us might not be drinking enough. Is bottled water part of the answer? To decide, consumers need to arm themselves with knowledge about what they're buying before they grab the next bottle of bottled water. Regardless of the seasons and the weather, your need for water remains the same. Remember that 95% of human blood is water.

The government apathy


In April 2002, the government of India announced a new water policy based on privatization. The social activists allege that this policy was shaped entirely by the World Bank recipes for the water sector. In comparison to global standards India's bottled water segment is largely unregulated. Safe water is rated with a different yardstick in different countries. In India, the aspect Has been overlooked for long. Indian consumers tend to believe that any bottled water is safe water. This may not be the case.

Several small players have entered the trade in India to capitalize on the craze, with no check on them. Some serious doubts have been raised about the safety of so-called bottled water available. There has hardly been an involvement of any statutory body in defining specific standards. The Bureau of Indian Standards (BIS) has just recently got involved in the process. He Associated Chambers of Commerce and Industry of India (ASSOCHAM) has proposed expediting setting up of Water Regulatory Authority, urging the Planning Commission to build a strong case for its creation to the government. The Chamber's proposal which will be submitted to the Deputy Chairman, Planning Commission, Dr. Montek Singh Ahluwalia by its President, Anil K. Agarwal, stresses that water is crucial and hardly any good job is being done in this area. As only a third of country are under irrigation with assured canal water or ground water supplies. Maintenance of irrigation system is poor which is partly because water tariff are very low and do not cover the costs of tariff and maintenance, said the Chamber proposal.

ABOUT BOTTLED WATER: International Scenario


The world bottled water market amounts to an annual volume of 109 billionaires, an average 17.5 liters of bottled water drunk yearly per person (Zenith International, International Council of Bottled Water Association, 2000). Western Europeans are the major consumers, with an average of 93 liters/person/year. Asians presently consume the least. Thus there exists a vast potential market for bottled water in Asia. Nestle, a leading player of bottled water in the world market with a turnover.CSE Report on pesticide residues in bottled water (Delhi region) of about US $ 3.5 billion in 1999, represents 15.3 per cent share of the world market. Nestle owns well known brands in 17countries, like Perrier, Contrixor, Vittel (France), Arrowhead, Poland Spring, Calistoga (United States), and San Pelligrino (Italy). Danone, a French group, holds 9 per cent of

the world market share and boasts of powerful brands such as Evian, Volvoic and Badoit (Ferrier C, 2001). Pepsicos Aquafina launched in 1995 in the USA had a turnover of US $ 600 million (Ballot L, 2000). According to a 1999 Natural Resource Defense Council (NRDC) USA report, 40 per cent of the bottled water is derived from tap water. PepsiCos Aquafina label read: picture beautiful stylized mountains. However, the water was actually municipal tap water derived from 11 different city and town water supplies. One brand advertised as "pure glacier water" uses public water supply and another touted as "spring water" pumped water from a parking lot next to hazardous waste (Olson E, 1999). According to the report, tests were conducted on 1000 bottles of 103 brands; it was found that bottled water was generally safe to drink. However, one fourth of the bottled water violated the quality limits enforced by the government. About one third of the bottles tested showed the presence of contaminants like bacteria, industrial chemicals, algae and excessive chlorine. About one fifth of the water contained synthetic organic chemicals such as industrial chemicals (toluene, xylene, isopropyl toluene), chemicals used in manufacturing plastics (phthalates, adipate, styrene) and tri halomethanes (cancer-causing by-products of water chlorination), but at levels below the standards prescribed by the federal government or state government. Arsenic, a known human carcinogen, was detected in 8 percent of the samples and was above the prescribed limits. In 1990, Perrier had to withdraw 280 million bottles from 750,000 sale points in the world because of benzene concentrations above US standards (8-17g, instead of 5 g) (Olson E, 1999). Recently the USEPA reported that almost 10 per cent of community tap water system violated federal EPA tap water treatment or contaminant standards. Of this, 28 per cent violated significant water quality monitoring or reporting requirements. Significant levels of contaminants such as cancer-causing trihalomethanes, radon and arsenic were detected in the tap water (NRDC, 1995) (4). FDA (Food and Drug Administration) rules for bottled water are often weaker than USEPA regulations applying to big city tap water; bottled water is required to be tested less frequently than city tap water for bacteria and chemical contaminants. In particular, tests for coli form bacteria are done once a week for bottled water as compared to an average 100 times per month for tap water; tests for organic chemicals such as industrial chemicals, some pesticides and trihalomethanes are done four time a year for tap water, once a year for

bottled water (Olson E, 1999). Eleven of the 29 European brands of mineral water were found to be.CSE Report on pesticide residues in bottled water (Delhi region) 5 contaminated with Norwalk like virus or NLV, and human faces were contaminating the water either at the source or some time during the bottling procedure (Beuret C et al, 2000).

Indian Scenario: The bottled water market


The Rs 1000 crore bottled water industry is growing at the rate of 40 per cent annually (Business Today, 2001). Under the BIS certification scheme, about 517 licenses for packaged drinking water have been issued in the country as per IS: 14543:98. BIS has granted 6 licenses for packaged natural mineral water as per IS: 13428:98 including one license in France under foreign manufactures (Malik PP, 2002). At the forefront are Bisleri, Bailley, Yes, Kinley and Aquafina. There are numerous other regional and local brands across the country, meeting local demands. Many multinationals have entered the market and have increased the marketing activity to tap the unexploited potential. Most of the brands compete in a very narrow market segment, comprising predominantly the travel, tourism, caterers, restaurants, and hospital segments. The attention is now focused on tapping the vast potential presented by entry into affluent / upper middle class households. The bottled water market share of major brands is captured by Bisleri (51 per cent), Bailley (17 per cent), and Yes (11 per cent) followed by Kinley (10 per cent) and Aquafina (4 per cent) (Source: BT Estimates June, 2001). In the natural mineral water sector Evian, Perrier, Catch, and Himalayan are the major brands. Difference between Packaged Natural Mineral and Packaged Drinking Water Packaged Natural Mineral Water: According to BIS natural mineral water is obtained directly from natural or drilled sources like spring artesian well, drilled well or from an underground water-bearing strata for which all possible precautions should be taken with in the protected perimeters to avoid any pollution of, or external influence on, the

chemical and physical qualities. It is characterized by its content of certain mineral salts and their relative proportion and the presence of certain trace elements of other constituents. It is required to be collected under conditions, which guarantee the original natural bacteriological purity and chemical composition of essential components and is bottled at the point of emergence of the source under hygienic conditions. It is not subjected to any chemical treatment such as pasteurization, ionization, or ozonation. The packing of natural mineral water has to be done at the place of the source water only and transport of unpacked water in bulk is not permitted. There are only 6 packaged natural mineral water brands in India 5 in the Northern Region (Himalayan, Catch, Hello Blue, Total Z and Life Spring) and 1 under the foreign manufacturers scheme, namely Evian Imported from France.

Packaged Drinking Water: Most of the bottled water brands come in the category of
packaged drinking water which according to BIS is derived water filled in hermetically sealed containers of various compositions, form, and capacities that is suitable for direct consumption without further treatment. It is subjected to treatment: decantation, filtration, and combination of filtration, aeration, filtration with membrane filters, depth filter, cartridge filter, activated carbon filtration, and demineralization. It is disinfected to a level that will not lead to harmful contamination in the drinking water..CSE Report on pesticide residues in bottled water (Delhi region) 7

WHY aqua.

Aqua Man Pepsi brings world-class service to your doorstep with AquaMan, who is a trained delivery man. He not only delivers Aquafina 25 Litre at your home, but also answers all queries related to delivery and the complete service solution.

A range of dispensers to choose from

With Aquafina 25 Litre, you also get to choose from a range of imported dispensers that are 'exclusively designed' to be compatible with the unique 'Tamper & Adulteration Evident Seal' of the jar. Brought to you by Pepsi at highly affordable prices, the range contains a Battery-operated model, a Table-top model (1 litre) and two Stand-alone models - (2 liters without refrigerator) and a top of the line Refrigerator-attached model.

Cashless payments

Aquafina's Electronic Pre-paid Card, for the first time in India, allows you to make cashless payments for a month's supply of Aquafina 25 Litre.

How do we measure up? BIS WHO EU We Comply We Comply We Comply for pesticide residue

How we measure up specifically on the issue of pesticide residue? Standards Norm BIS WHO EU Pesticide residues of 32 Pesticide residues of 32 Individual pesticide tested pesticides should tested pesticides should level should be below be non-detectable be below listed limits 0.1 ppb (parts per billion). Total pesticide level below Aquarians performance Aquafina meets the norms Aquafina meets the norms 0.5 ppb Aquafina meets the norms

The above are the results of the tests conducted across all our plants presently producing Aquafina, by VIMTA Laboratories, an independent, accredited ISO 9001 laboratory. (for reports e-mail: crm@vimta.com) No bottle of Aquafina reaches you without the above certification Our internal quality procedures dictate that three trial runs are taken in an operating plant

environment and samples be sent to independent laboratories for testing. It is only after every single bottle meets our internal quality standards and fully conforms to all BIS guidelines that it leaves the plant for your consumption Our belief in our quality stems from the fact that every bottle of Aquafina goes through the most advanced state-of-art purification system in the country - Chlorination, Sand Filtration, Activated Carbon Purification, 5-Micron Polishing, Ultraviolet Treatment, Reverse Osmosis, 1-Micron Polishing and Ozonation It is therefore with utmost confidence that we at PepsiCo re-iterate that we always have and always will continue to deliver safe and world-class quality bottled water to you.

Quality Standards
Aqua 8 Technology:

Every drop of Aquafina goes through an advanced eight-stage purification process Chlorination, Sand Filtration, Activated Carbon Purification, 5-Micron Polishing, Ultraviolet Treatment, Reverse Osmosis, 1-Micron Polishing and Ozonation Tamper & Adulteration Evident Seal:

Each Aquafina 25 Litre jar is factory-fitted with a 'Tamper & Adulteration Evident Seal' before being directly delivered to you from Pepsi's authorized plant. The closure is specially designed with a non-retrievable Safety Cap, which gets detached and floats in the water, if the jar is tampered with Clear & Colorless Jars:

Aquafina 25 Litre jars are fully transparent, with no blue tint that hides impurities. This way, you can be absolutely sure of the water you are receiving. No Boiling Needed:

With Aquafina 25 Litre, you get pure drinking water that is free of bacteria and germs. The water goes through 8 rigorous stages of purification before being packaged into jars that are made of food grade polycarbonate, the same material that is used in making feeding bottles for babies

Products of aqua..

Aquafina 25 Litre goes through 8 rigorous stages of purification, before it is carefully bottled in a crystal clear jar that lets you see what's inside.

For the first time ever, Aquafina 25 Litre comes to you with a unique 'Tamper & Adulteration Evident Seal' with a 'safe cap' that ensures you get nothing but pure drinking water. Aquafina 25 Litre: Delivery process Five easy steps to get started Step 1: Fill up online order form or 'order by phone Step 2: Pay a onetime deposit. A family of four on an average requires two jars of 25 Liters per week. Step 3: To dispense Aquafina pure water from the jars, you will need a dispenser from our international range priced attractively. The AquaMan visiting you would show pictures of each model and explain the benefits to you. Step 4: Aquafina 25 Litre jars, as per your requirements, would be delivered to you on a weekly basis. The time and day of the weekly visit by an AquaMan will be conveyed to you in advance Step 5: Payments can be made in cash or through an Electronic Prepaid Card, which can be recharged during the weekly visits by the AquaMan. Now with Aquafina 25 Litre and AquaMan, you can enjoy a hassle-free and continuous supply of Aquafina pure drinking water at home

2 Litre

Contact Us: - PEPSI FOODS PRIVATE LIMITED


38, DLF Corporate Park, 'S' Block Qutab Enclave Phase - III, Gurgaon - 122 002, (Haryana) INDIA Tel: 91-124-2355880 Fax: 91-124-2355854

Achievements
2007

Seven PepsiCo Products on Women's Health Magazine's '100 Best Packaged Foods for Women' List. Pepsi Pinball commercial nominated for an Emmy. PepsiCo was named one of the Best Graduate Employers in China by university students in China, for the second year in a row. Doritos Crash the Super Bowl program won the 2007 Cannes Gold Medal Lions Award in the Fast Moving Consumer Goods category. The Lays 100% Pure Joy commercial won the Public Relations Society of Americas Silver Anvil Award. Doritoss Crash the Super Bowl campaign won a Platinum Hermes Creative Award from the Association of Marketing and Communication Professionals in the Publicity Campaign category.

PepsiCo was given the title of 2007 Outstanding Employer of China in Shanghai Region jointly by CRF, Holland's professional publication and ranking organization, and China Business News Group.

In March of 2007, PepsiCo China won the PepsiCo Innovation Award and the 3D Marketing Innovation Award. Covalence published its Ethical Ranking for 2006, ranking PepsiCo 6th for Best Reported Performance The Hay Group and Chief Executive magazine rank PepsiCo as #3 in the 2006 Top 20 Best Companies for Leaders PepsiCo has been named to the 100 Best Corporate Citizens list for 2007 by Business Ethics Magazine Diversity Business names PepsiCo as one of America's Top Organizations for Multicultural Business Opportunities Catalyst honors PepsiCo with the 2007 Catalyst Award for its strategic business initiatives in the advancement of women in business PepsiCo named among "Most Influential Multinationals in China" for the third consecutive year Human Rights Campaign names PepsiCo as one of the Best Places to Work for GLBT Equality

PepsiCo China was awarded a 2006 Best Corporate Public Image Award for its brand image of vitality and youthfulness PepsiCo recognized among the 2007 100 Best Corporate Citizens in the US by CRO magazine PepsiCo named to List of Americas Top Corporations for Womens Business Enterprises Sams Club Aquafina Return the Warmth program has won the very top environmental honor from the Cause marketing Forum Fortune Magazine ranks PepsiCo once again to the Top 10 of Americas Most Admired Companies in the World Institutional Investor magazine has identified PepsiCo as one of Americas Most Shareholder-Friendly Companies PepsiCo makes #10 in the LOHAS Index for the its corporate social responsibility program and communications PepsiCo is named EPAs Energy Star Partner of the Year Business Week names PepsiCo in its 2007 Best Performers List PepsiCo receives 2007 Catalyst Award PepsiCo in Top 10 of DiversityIncs Top 50 Companies for Diversity list Indra Nooyi receives India Abroad award

2006

Fortune magazine (Chinese Edition) named Pepsi Most Valuable Brands in China. In June 2006, PepsiCo was named the Most Trustworthy Consumer Brand in China by Peking University Business Review. PepsiCo given Best Employer of University Graduates in China by chinahr.com.

PepsiCo named winner of the best-integrated marketing campaign during the Globes Awards sponsored by the Marketing Agencies Association (MAA) Worldwide: Pepsi Wins Award for Indian Cricket World Cup Campaign.

PepsiCo recognized as one of the "20 Most Influential Multi-Nationals in China." by China Business News. Institutional Investor releases Best CEOs list; Steve Reinemund tops beverage leaders. Chinese college students name Pepsi Among Top Ten Brands. Fortune magazine calls PepsiCo "one of the best run companies in the country. PepsiCo wins Sams Club Supplier of the Year award. Institutional Investor identifies PepsiCo as one of Americas Most ShareholderFriendly Companies. PepsiCo Ranks as 15th Most-Admired Company on Fortune magazine's List of the Top 20. Gatorade Mexico named Wal-Mex Supplier of the Year. PepsiCo officially observes $100 Billion Market Cap Milestone. The City of Arlington, Texas honors Frito-Lay's Arlington plant with the Waste Water Pre-Treatment Excellence award. The Environmental Protection Agency (EPA) and the Department of Energy (DOE) honor Frito-Lay as an Energy Star Partner of the Year. PepsiCo is named to America's Top Corporations for Women's Business Enterprises list by The Women's Business Enterprise National Council (WBENC).

Barrons includes Steve Reinemund on its list of the Worlds 30 Most Respected CEOs. PepsiCo is presented with the International Corporate Courage Award by the AIDS Responsibility Project (ARP). For the second consecutive year, Gamesa-Quaker named a socially responsible company by Empresa Socialmente Responsible.

PepsiCo receives the United Way's Spirit of Westchester and Putnam Corporate Award, an unprecedented honor for PepsiCo, as it was the first time ever that any company was presented the award two years in a row.

PepsiCo ranks 18 on DiversityInc's Top 50 Companies for Diversity list. PepsiCo is named to Business Ethics magazine's 100 Best Corporate Citizens List. PepsiCo is among the 10 Top Ranked Companies in the 2005 Rittenhouse Candor Rankings. Pepsi Brands sweep Brandweek Magazine's Customer Loyalty Awards. PepsiCo Foodservice wins Target Corporation's 2005 Partner Award of Excellence in the Food Operations/Food Avenue category. Frito-Lay's San Antonio site is one of seven companies and organizations honored by the San Antonio Water System with a WaterSaver Award for its focus on water conservation.

PepsiCo is named among the 2006 Industry Week 50 Best Manufacturing Companies and recognized as the top performer in the beverages industry. Black Enterprise names PepsiCo among 40 Best Companies for Diversity and 10 Best Companies in Marketing Diversity. The Gay and Lesbian Alliance against Defamation (GLAAD) awards Pepsi top honors for a Diet Pepsi TV Spot. The Women's Foodservice Forum (WFF) honors PepsiCo with the inaugural Jackie B. Trujillo SOAR Award. PepsiCo China won four major awards at the Fifth Anniversary Award Ceremony of the Mother Water Cellar Project held in Shanghai in June, taking two of the top awards, the Outstanding Contribution Award and the Corporate Social Responsibility Award.

PepsiCo is awarded the prestigious 2005 NAAAP Convention Excellence award for its participation at the 19th Annual National Association of Asian American Professionals Convention.

Forbes names Indra Nooyi as one of The 100 Most Powerful Women.

PepsiCo is honored as one of The 50 Best Companies for Latinas to Work for in the US by Latina Style magazine. Hispanic Business magazine names PepsiCo one of the Top 50 Companies for Hispanics, citing that at PepsiCo, diversity and inclusion are fundamental strategic priorities at the core of its value system.

PepsiCo foodservice is awarded as Supplier of the Year by Sysco Food Services. Pepsi ranked among Top 100 Brands by Business Week. PepsiCo receives the 2006 Vision for America Award from Keep America Beautiful, Inc., the nations largest nonprofit community improvement organization, for PepsiCos leadership role in preserving the environment through its many diverse conservation and educational efforts.

PepsiCo ranked among ''World's Most Respected Companies'' by Barron's. Frito-Lay ranked as one of the Top Three Leaders in the area of Supplier Diversity in North Texas area survey. PepsiCo rising to Number 3 spot in Cannondale Associates 2006 Power Ranking Survey which highlights the manufacturers and retails who have sustained positive performance over time.

PepsiCo UK and Ireland named in the Times " Top 50 Places Where Women Want to Work." Frito-Lays Vancouver WA site is awarded the 2006 Governors Award for Pollution Prevention and Sustainable Practices. PepsiCos Treasury Department wins two awards, Alexander Hamilton Award for Excellence and the Association for Financial Professionals Pinnacle Award, for its strategic, industry-leading solutions in treasury and financial management.

Ethisphere Council gives PepsiCo an A rating in their Code of Conduct Report Card for creating competitive advantage through ethical leadership. Business Week names PepsiCo's leadership transition from Steve Reinemund to Indra Nooyi as the "Smoothest Handover" in an article of "The Best Leaders".

2005

For the third time, Changchun Pepsi was named Advanced Enterprise of Protecting Water Resources and Advanced Enterprise of Creating National Model City of Environmental Protection by the Changchun Municipal Government.

Hispanic Magazine names PepsiCo one of the "100 Companies Providing the Most Opportunity for Hispanics" PepsiCo included on Div50 list of the Top 50 Corporate Buyers of Diversity Products and Services in the U.S. awarded by DiversityBusiness.com Fortune names PepsiCo #1 in Consumer Food Products in its survey of Americas Most Admired Companies. The National Association for Female Executives (NAFE) names PepsiCo among the "NAFE 2005 Top 30 Companies for Executive Women." Governance Metrics International released its semiannual corporate governance ratings for 3,200 companies. PepsiCo scored 10 out of 10. Only three companies in the US have achieved the highest overall score for four consecutive semiannual reporting periods PepsiCo, Colgate-Palmolive and Praxair.

California Waste Reduction Awards Program (WRAP) , Frito-Lays Modesto plant is a Top-10 WRAP of the Year winner for 2004 Second Annual CPG & Retail Excellence Awards names PepsiCo Manufacturer Innovation of the Year Pepsis Cindy Crawford Commercial Most Viewed 2005 Super Bowl Ad on The America Online Service Institutional Investor Magazine Ranks Americas Best CFOs Under Consumer, Beverages, Indra Nooyi, PepsiCo Global 100 Most Sustainable Corporations in the World, 2005 List Innovest Strategic Value Advisors Inc. lists PepsiCo Ted Turner, Tom Burrell, Harry Jacobs and Roger Enrico Elected to Advertising Hall of Fame

Latina Style Magazine, a national magazine for the contemporary Hispanic woman, selected PepsiCo as one of the Latina Style 50 Best Companies. New York Urban League Honors PepsiCo for Diversity recognizing corporations for corporate citizenry, hiring, supplier relations and philanthropic practices.

Institutional Investor named PepsiCo Chairman and CEO Steve Reinemund as the top CEO in the beverage industry. Institutional Investor Research Groups ranking of the best U.S. investor relations efforts, PepsiCo was the top company in the beverage sector. DiversityBusiness.com ranks PepsiCo #17 on its list of Americas Top Organizations for Multicultural Business Opportunities. DiversityIncs Fifth Annual Top 50 Companies for Diversity Survey, PepsiCo ranks as No. 4 overall. PepsiCo is No. 1 for African Americans, No. 1 for Latinos, No. 2 for Recruitment & Retention, No. 4 for Asian Americans, No. 5 for GLBT Employees, No. 8 for Supplier Diversity.

Innovaro ranked PepsiCo as one of the 20 most innovative companies in the world Womens Business Enterprise National Council listed PepsiCo in the top 15 list of Americas Top Corporations for Womens Business Enterprises and in its 15 Corporations Attain World-Class Status in Supplier Diversity

PepsiCos Lampoon Plant received the Certificate of Gold Level from AIDS Response Standard Organization (ASO Thailand) sponsored by Department of Labor Protection and Welfare, Ministry of Labor

Barrons, Top 30 CEOs names PepsiCos Steven S Reinemund. The Hispanic Association on Corporate Responsibility Ranks PepsiCo #3 on its Corporate Index on inclusion of the Hispanic community in business. PepsiCo Chairman and CEO Steve Reinemund is named one of Best Managers of 2004 by Business Week. Texas State Senate honors retired PepsiCo Vice Chairman and Frito-Lay North America Chairman and CEO Al Bru with a resolution for his contributions to the Texas economy and his leadership.

PepsiCo receives top honors for innovation from Information Resources Inc. for development of an analytics insight tool. Taco Johns names Pepsi its Beverage Supplier of Choice. BJs Wholesale Club names PepsiCo Vendor of the Year. For the second consecutive year, Sams Club names Gatorade its Supplier of the Year. Good Housekeeping magazine names Tropicana Homestyle Best Supermarket Orange Juice. Sizzler names Pepsi-Cola North America food and beverage Vendor of the Year. Health magazine names Quaker Take Heart Instant Oatmeal as the best hot cereal in its first annual Best Foods Awards. SoBes web site wins the Peoples Voice Award in the food and beverage category of the International Academy of Digital Arts 9th Annual Webby Awards.

PepsiCo receives the Corporate Achievement Award from the University of Marylands Smith School of Business for its efforts to foster a diverse corporate culture.

The Texas Diversity Council recognizes Frito-Lay with the Best-in-Class Diversity and Inclusion Practices award, which recognizes companies that attract, select, develop and maintain diversified and qualified talent in order to complete in a diversified workplace.

PepsiCo Celebrating Us week held in Purchase, NY wins top prize in Profile in Diversity Journals International Innovation in Diversity Awards. PepsiCo named One of the Worlds Top 10 Companies for Innovation and Excellence in Executive Development by Executive Development Associates (EDA), a global executive development firm.

PepsiCo and PBG Named to Black Enterprise 30 Best Companies for Diversity list. PepsiCo wins Sodexho Spirit of Service Vendor of the Year Award. Wal-Mart names QTG Sales its Supplier of the Quarter.

National Business Group on Health recognizes PepsiCo for its commitment to promoting healthy lifestyles for its employees with the Best Employers for Healthy Lifestyles award.

IndustryWeek names PepsiCo one of the 50 Best Manufacturing Companies among the largest 500 publicly held manufacturers headquartered in the United States.

Fortune names PepsiCo a top employer for minorities. Global Finance magazine names PepsiCo one of the Best Companies in North America for 2005. PepsiCo scores 10 out of 10 on Governance Metrics International (GMI) global ratings for the fifth consecutive time. Barrons ranks PepsiCo as the 12th most respected company on its list of the Worlds Most, and Least, Respected Companies . The list includes the 100 largest companies by market value.

PepsiCo scores 100% on the Human Rights 2005 Corporate Equality Index. Frito-Lay distribution center in Rochester, NY is certified by the U.S. Green Building Council and was granted LEED(Leadership in Energy and Environmental Designs) Gold status, one of the highest energy efficient standards in the industry.

Frito-Lay is named one of Americas Safest Companies of 2005 by Occupational Hazards magazine. PepsiCo is named to the Top 100 Diversity Employers list by Black Collegian magazine. Frito-Lays 24-count Multi-Sack variety pack won the Institute of Packaging Professional's (IoPP) Integrity Award, one of the industrys top awards, at this years AmeriStar Packaging Awards.

PepsiCo Quiznos Team Receives Vendor of the Year Award. According to a report by a JP Morgan analyst, PepsiCo has the best board of directors among American beverage companies. PCNA Web Site Named Best Marketing Web Site of the Year by AdAge magazine.

Fortunes list of the 50 Most Powerful Women in Business include PepsiCos Indra Nooyi, Irene Rosenfeld and Dawn Hudson. Fortune names PepsiCo among the Top Employers for Women. Sabritas, in its first year as a contestant, awarded the distinction of " Socially Responsible Business" by the Mexican Center for Philanthropy. PepsiCo tops Curves magazines Best Companies for Lesbians list for its benefits programs and employee networks. PepsiCo ranks 19th on Jungle magazines list of Ideal Companies for Women MBAs, up 10 places from 2004 for PepsiCos significant roster of top female executives.

PepsiCo scores 100% on Human Rights Campaigns (HRC) Corporate Equality Index (CEI) for the third consecutive year.

2000

PepsiCo named one of the Hispanic Corporate 100, companies providing the most opportunities to Hispanics. Tropicana Bradenton manufacturing facility qualifies for the voluntary Protection Program (VPP) STAR rating conferred by the Occupational Health and Safety Administration (OSHA).

PepsiCo named one of "The 50 Best Companies for Minorities" by Fortune magazine. Council on Economic Priorities names PepsiCo one of its top companies in Shopping for A Better World. Corporate Angel Network (CAN) honors PepsiCo for reaching "Elite" status. CAN arranges for cancer patients to fly to treatment centers for free on corporate aircraft.

PepsiCo named by Global Finance as one of "The Worlds Best Global Companies." PepsiCo named by Latina Style magazine as one of "The 50 Best companies for Latinas to Work for in the U.S." PepsiCo named one of "Americas Top Corporations for Womens Business Enterprises" by the Womens Business Enterprise National Council. Frito-Lay facility in Visalia,CA receives top honor STAR status from Occupational Safety and Health Administration (OSHA). This is the sixth FritoLay site to receive the Voluntary Protection Program (VPP) Star status.

PepsiCo named one of "Ten Top Companies for Minority MBAs" by Minority MBA magazine. Dawn Hudson, Pepsi-Cola SVP Strategy and Marketing, ranked among the "50 most powerful people" by Ad Age Magazine. Fortune magazine names Indra Nooyi, PepsiCo, CFO as one of "The 50 Most Powerful Women in Business." PepsiCo is named to the Forbes Platinum List Fortune magazine ranks PepsiCo #3 on Americas Most Admired Companies List for Beverages

Deborah Sims-Beck awarded Corporate Advocate of the Year Award by the Dallas/Fort Worth Minority Business Development Council.

1999
PepsiCo is named to Metropools Leadership Circle, recognized for efforts to help reduce traffic congestion and air pollution in Westchester, NY. Tropicana Products receives top honors in the Business and Industry category in the Keep Florida Beautiful Awards. Fortune magazine names PepsiCo one of the "50 Best Companies for Asians, Blacks, and Hispanics." Worth Magazine names PepsiCo to its list of "America's Most Generous Companies"

Hallie Eisenberg Joy of Cola commercials named #6 of Fifty Greatest TV Commercials of all time by TV Guide. Joy of Cola ads #2 of Best-Liked Commercials in USA Today poll for first six months of 1999. Tropicana Pure Premium Multivitamin juice is voted "Best Product of the Year" in the Total Soft Drink and Juice

2007 Diversity News


PepsiCo Named Among Top 50 Workplaces for Women in U.K. and Ireland LATINA Style Magazine Names PepsiCo as its 2007 Company of the Year; Announces the 2007 LATINA Style 50 PepsiCo Fund Awards $3 Million Grant to YMCA of the USA PepsiCo and enABLE Receive Innovation Award from Chicagoland Chamber of Commerce PepsiCo Makes Essence Magazine's list of 25 Great Places to Work PepsiCo Honored at Catalyst Award Honor PepsiCo in Top 10 of DiversityInc's Top 50 Companies for Diversity List PepsiCo Named on WBENC's 2006 America's Top Corporations for Business Enterprises Human Rights Campaign Foundation 2007 List of Best Places to Work for GLBT Equality

PepsiCo Named Among 2007 Working Mother's 2007 "Best Companies for Multicultural Women" PepsiCo Earns Spot in Black Enterprise Magazine's 40 Best Companies for Diversity

2006 Diversity News


PepsiCo in Top 13 Companies by LATINA Style magazine The 40 Best Companies for Diversity Women's Business Enterprise National Council (WBENC) Announces New List Of 18 "America's Top Corporation For Women's Business Enterprises"

2005 Diversity News

Profiles in Diversity Journal announces winners of International Innovation in Diversity June, 2005 Awards

Hispanic Association on Corporate Responsibility (HACR) Ranks PepsiCo #3 in First Corporate Index of Inclusion of Hispanic community May, 2005 PepsiCo Ranks No. 4 on DiversityInc's Fifth Annual Top 50 Companies for Diversity Survey April, 2005 NAFE Names PepsiCo Among Top 30 Companies for Executive Women April, 2005

Political Contributions Policy


PepsiCo's Board of Directors has approved the following policy. Together with other policies and procedures, including our Code of Conduct, it guides our approach to political contributions. By following the policy and the accompanying procedures, by adhering to the letter and the spirit of all applicable laws and regulations, and by exercising sound judgment regarding our involvement in the political process, we affirm and strengthen our commitment to PepsiCo's values.

Policy
It is essential in a democratic society that citizens participate in their government. The health of our society depends on all of us being well informed and responsibly engaged in the political process. The PepsiCo Concerned Citizens Fund (CCF) receives voluntary employee contributions to make political campaign contributions to U.S. federal and state political parties, committees and candidates. The CCF and the company's corporate contributions provide an important opportunity for PepsiCo, and its employees, to participate in the democratic process. We believe that providing financial support to responsible pro-business candidates is an important means by which we help improve the business climate, our quality of life and the society in which we live, enabling us to succeed as a company committed to integrity, innovation and value. The following criteria will be used in connection with all contributions: The candidates or entitys commitment to improving the business climate; The candidates or entitys position or voting record on issues of direct concern to PepsiCo; The location of PepsiCo facilities or employees within the candidates district or state; The candidates position on key committees where legislation of importance to PepsiCo is considered or the candidates demonstrated leadership or potential for leadership within the U.S. Congress or a State Legislature; The candidates need for campaign financial assistance. The public policy issues we face as a company and our engagement in the public policy process, including contributions as part of the political process, are discussed with and reviewed by the Nominating and Corporate Governance Committee of the companys Board of Directors.

Details on PepsiCos political contributions will be posted on its website on an annual basis. This will occur in conjunction with the release of PepsiCos Corporate Citizenship Report each year. All contributions and support of U.S. or state political parties, committees or candidates from the CCF or corporate funds must be made in accordance with applicable campaign finance and disclosure laws. Coercion of any employee to contribute to the CCF or to make any political contribution of any kind is unacceptable. Our employees have the right to be engaged in the political process in their individual capacity as they see fit, and make political contributions of their own time and money to the candidates or parties of their choice. Of course, those efforts must not in any way suggest PepsiCos support. Management and supervisory employees who are citizens of the United States may voluntarily contribute to the CCF. PepsiCo employees must obtain approval of the Corporate Vice President Public Policy & Government Affairs before making political contributions of corporate funds. All contributions must be reviewed by the corporate law department to ensure legal compliance. All payments from the CCF to support U.S. or state political parties, committees or candidates must be approved by the CCF Executive Committee.

Indian government policy


It has been covered under the following heads : 2.2.1 The Water (Prevention and Control of Pollution) Act, 1974 (As Amended In 1978 And 1988). The Water Act is a comprehensive legislation providing for the Prevention and Control of Water Pollution and for maintaining or restoring the wholesomeness of water in streams or wells. The Act provides for the establishment of the Central Pollution Control Board at the Centre and State Pollution Control Boards in the respective States. (A) The functions of the Central Board at the national level are to i) Advise the Central Govt. on matters relating to prevention and control of water pollution. ii) Coordinate the activities of the State Board and resolve disputes among them. iii) Provide technical assistance and guidance to the State Boards. iv) Carry out and sponsor research and investigation in the problems of water pollution. v) Set the standards for streams and wells. vi) Create environmental awareness and vii) To act as State Board for the Union Territories. (B) State Board has executive and territorial functions which include : i) Planning for prevention, control or abatement of pollution of streams and wells. ii) Advise the State Govt. on matters relating to water pollutioniii) Inspection of sewage or industrial effluent, including municipal wastewater treatment plants for the treatment of sewage or trade effluents. iv) Setting standards for the sewage and industrial effluents discharge. There is a provision of joint boards for two or more contiguous States. In case of dispute between two State Boards, the Central Board has authority to arbitrate. Important provisions in the Water (Prevention and Control of Pollution) Act, 1974 (As amended In 1978 And 1988) are : i) Pollution Control Board (PCB) has the right - to obtain any information regarding the construction, installation or operation of an industrial establishment or treatment and disposal system

- to take samples of trade effluent for the purpose of analysis in the prescribed manner - to enter and inspect any industrial establishment, record, register, document or any other material object. - to prohibit use of stream or sewer or land for disposal system without prior consent of the PCB. ii) Restriction on establishment and the operation of any industry process or any treatment and disposal system without prior consent of the PCB. iii) PCB's right to refuse or withdraw consent, for discharge of effluents. iv) Industry to comply with the conditions stipulated in the consent. v) PCB's to grant consent within four months after the date of receipt of the application complete in all respects. vi) Industry to appeal to the Appellate Authority, in case of grievances against the order passed by the PCB regarding grant, refusal or withdrawal of the consent within the specified time in the prescribed manner. vii) Industry to furnish information to the PCB and other specified agency (ies) in case of discharge of poisonous, noxious or polluting matter into a stream, sewer or land, occurred or likely to occur resulting in pollution due to an accident or any other unforeseen event. viii) PCB's right to issue orders restraining or prohibiting an industry from discharging any poisonous, noxious or polluting matter in case of emergencies, warranting immediate action. ix) PCB's have power to make an application to the court for restraining likely disposal of polluting matter in a stream or on land. x) Bar of jurisdiction in civil court in respect of any matter under purview of the Appellate Authority constituted under the Act and no grant of injunction in respect of any action taken or proposed in pursuance of the Act. xi) Bar on filing of any suit or legal proceedings against the Government or Board officials, for action taken in good faith in pursuance of the Act. xii) PCB's to make inquiries, in the prescribed manner, for grant of consent for discharge of effluents. xiii) PCB's power to issue directions for - the closure, prohibition or regulation of any industry, operation or process or, - the stoppage or regulation of supply electricity, water or any other service to industry in the prescribed manner

xiv) Industry to comply with the directions of the PCB within the specified time. xv) PCB's to maintain a consent register containing particulars of the consent issued and to provide access to industry at all reasonable hours.

The Water (Prevention and Control of Pollution) Cess Act, 1977 (Amended in 1991) The Water Cess Act provides for the levy of a cess on water consumed by persons carrying on specified industries given in Schedule-I of the Act and also local authorities entrusted with the duty of supplying water under the laws by or under which they are constituted at the rates specified in Schedule-II of the Act. The Cess is levied and collected by the State Government concerned and credited to the consolidated Fund of India. An industry which installs and operates its effluent treatment plant is entitled to a rebate of 25% on the cess payable. The cess has been introduced mainly to augment the resources of the Central and the State Pollution Control Boards. (Prevention and Control of Pollution) Act, 1974 is in force and the State Government has constituted a State Pollution Control Board, that State Board shall be deemed to be the State Board for the prevention and control of air pollution. For Union Territories the Central Pollution Control Board is empowered to perform the functions of a State Pollution Control Board under the Act. The State Governments. in consultation with their respective State Boards are empowered to declare air pollution control areas. As per the provisions of the Air Act no person can establish or operate any industrial plant in an air pollution control area without obtaining the consent from the concerned State Board.

Fture plan

PepsiCo
[

announces

plan

for

second

snack

plant

in

Russia

PepsiCo International is pleased to announce the selection of the town of Azov in the Rostov region as the planned location of its second snacks manufacturing site in Russia, paving the way for an investment of around $170 million over the next five years into the region and the creation of approximately 1000 new jobs. 9 Jun 2007 , ST. PETERSBURG, Russia : PepsiCo International is pleased to announce the selection of the town of Azov in the Rostov region as the planned location of its second snacks manufacturing site in Russia, paving the way for an investment of around $170 million over the next five years into the region and the creation of approximately 1000 new jobs. PepsiCo's decision to build a second snacks manufacturing site comes five years following the decision to invest over $160 million in its first site and related agricultural programmes in Kashira near Moscow in 2002. The Kashira plant is now one of the largest and most modern snack manufacturing sites both in Russia and continental Europe.

Since 2002, the market for PepsiCo snacks products has grown quickly and the plant at Kashira, which employs around 1600 workers from the area, is now at full capacity. The new facility in Rostov will provide opportunity for the company to expand sales throughout Russia. Rostov was chosen as the ideal location for the second site due to its optimal access to customer distribution as well as availability of land and utility connections.

PepsiCo's investment planned for Rostov will also include investments in agricultural programmes in the area which will provide local potato farmers with the tools and training to increase yields and grow superior quality potatoes. Since beginning its snacks business in Russia in 2002, PepsiCo has invested substantially in local farming with the result that only four years after the start of the programme, 80% of all potatoes used by the Kashira plant are sourced locally, with plans to reach 100% in the next few years.

Speaking in St. Petersburg at a formal signing of the letter of intent with Governor Vladimir Chub of Rostov, Michael White, Vice Chairman of PepsiCo and CEO of PepsiCo

International, said: "I am delighted to confirm our decision to invest in the Rostov region to build our second snacks manufacturing site in Russia. Governor Chub and his team have provided every assistance to us in finding the best possible site and ensuring we will have access to the necessary infrastructure. We are deeply proud of our business presence in Russia and today's decision is another vote of confidence from PepsiCo in the future growth and competitiveness of the Russian economy." PepsiCo Russia Snacks General Manager, Paul Kiesler, said: "Our business in Russia has been growing quickly and the second site in Rostov will provide us with the necessary manufacturing capability to meet growing consumer demand for our products, both today and tomorrow." PepsiCo's beverage operations in Russia began in 1974, with the opening of a bottling plant in Novorossyisk, which established Pepsi-Cola as the first Western branded consumer product to be produced in the country. Today, PepsiCo and its strategic bottling and distribution partner, The Pepsi Bottling Group, provide direct and indirect employment for over 20,000 people in Russia and their products can be found in 96% of retail outlets across the country. PepsiCo's beverage brands in Russia include Pepsi-Cola, Aqua Minerale, Tropicana, 7UP, Mirinda and Gatorade (sports drinks). Its snacks brands include Lay's, Cheetos and Hrusteam, a recentlylaunched bread snack. PepsiCo (NYSE: PEP) is one of the world's largest food and beverage companies, with 2006 annual revenues of more than $35 billion. The company operates in nearly 200 countries, and employs more than 168,000 people worldwide. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 17 brands that generate $1 billion or more each in annual retail sales. PepsiCo's commitment to sustainable growth, defined as Performance with Purpose, is focused on generating healthy financial returns while giving back to communities the company serves. This includes meeting consumer needs for a spectrum of convenient foods and beverages, replenishing the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and inclusive environment that recruits and retains world-class talent. The company is listed on the Dow Jones North America Sustainability Index. For more information, please visit www.pepsico.com

OBJECTIVE
This project intends to study the consumer buying behavior at shops who were having mineral water and the degree of customer loyalty in Gorakhpur. This project covers

various aspects like consumer buying behavior, their expectations, needs & requirements, present satisfaction level, factors affecting their shops choices and the degree of consumer loyalty for Aquafina in Gorakhpur.

The project is divided into two parts. The objectives for the first part of the project are: To find out existing competitors of Aquafina. To find out important factors that affect customer satisfaction. To find out the customer service satisfaction level at existing grocery shops. To find out the consumers perception about packaged drinking water. To find out consumers perception about modern shops.

The second part of the project shows the degree of customer loyalty for Aquafina shops in Gorakhpur. The main objectives of the study are: To determine the determinants of Aquafina loyalty of consumers in Gorakhpur. To study the degree of customer loyalty for Aquafina . To test whether the model adopted for study holds true or not.

SCOPE

The research work aims at studying the sales of aquafina and other purified bottled water is being used by different people and thus finding the market position of aquafina and competitors (sample units spread all over Gorakhpur). While studying this I have tried to analyze whether the customers are satisfied or dissatisfied by its company of bottled mineral water and What are the reasons for its satisfaction or dissatisfaction? And if customers are dissatisfied, there reasons could be known so that if possible Aquafina could go on in future to provide the customers with its solutions, which would be free of all the reasons for dissatisfaction. Beside all mentioned above my project also touched the following aspects:

To know about the priority of factors which are considered important while purchasing a bottled mineral water. Knowing the size in which the shopkeepers were selling the bottled mineral water. Finding out the current favourite brand of sample units.

CHAPTER 2 METHODOLOGY

METHODOLOGY
Research in common parlance refers to search for knowledge. In fact research is an art of scientific investigation or it can be defined as a systemized effort to gain new knowledge. This project was conducted in Gorakhpur.

RESEARCH DESIGN
The research was of an exploratory nature and included gathering preliminary data to study the real nature of problem.

DATA SOURCE
Primary data being the main source for the research was collected by interviewing the shopkeepers of the bottled mineral waters.

SAMPLE SIZE
Sample was to be taken from the numbers of shops, who were selling bottled mineral water spread over Gorakhpur, from which 220 shops were chosen as sample size as per the requirement of Pepsico Ltd. Out of these sample size 209 samples were covered during the project. The rest eleven shops could not be covered due to unavailability of the concerned person to be interviewed.

SAMPLE DESIGN
Sample design was probabilistic as the sample units were specified by Pepsico India Holding Pvt Ltd for which research was to be done.

SAMPLE UNITS COVERED


During the summer training project I found that 209 samples out of 220 samples were mainly selling these 6 brands of drinking mineral water. These brands are as follows: 1. Aquafina 2. Bisleri. 3. Bailley. 4. Kingfisher 5. Yes 6. Arofina

RESEARCH PROCESS

Step 1: Defining the Problem


Defining the problem is the most important part of the market research process, because wrong definition misdirects research.

The type of the research to be carried out, the questions to be raised, and the sampling procedure to be followed and the data to be collected, all depend on the current understanding of the problem.

Aquafina is having tough competition in the market with other players, these players are local and branded. There are many factors, which influence the buyer for purchasing the mineral water. One of these factors is sales and promotional activities as well.

A major step in the conduction of marketing research is the decision regarding the nature of research design we are selecting for the purpose of our study.

The benefits of research design are that it evaluates demand of mineral water and consumption of aquafina for fulfilling the demand. Also evaluation of customers needs and in terms of results and the analytical work on the gathered data that will convert it to useful findings for the management.

The selection of a particular design depends on the causality of the variables involved. ** (Since I dont want to calculate any causality between any variables therefore descriptive research is preferable.) For the purpose of my study I intend to take up descriptive design. This covers research designs that are intended to produce accurate descriptions of variables relevant to the decision being faced, without demonstrating that some relationship exists between variables. Decision makers very often choose or are willing to accept descriptive data, which would permit only inferences to be drawn about causation. Here I am using cross-sectional design to produce a picture of the phenomena in which the decision maker is interested for example, the market shares of various firms, consumer preference regarding mineral water offered by PEPSICO, etc.

Step 2: Develop the Research Plan


The second stage of marketing research calls for developing the most efficient plan for gathering the needed information.

Designing a research plan calls for decisions on the data sources, Research approaches, research instruments, sampling plan, and contact method

Step 3: Collect the Information


The data collection phase of marketing research is generally the most expensive and most prone to error. The information collected should be both accurate and relevant as per as the requirements of research project. Depending on the requirement, the researcher has to work out a suitable data collection method. Data Collection Methods can broadly be classified into two major categories listed below:

Step 4: Analysis of the Information


The next step in the marketing research process is to extract findings from the collected data. The researcher tabulates the data and develops frequency distributions. Averages and measures of dispersion are computed for the major variables. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional findings.

Step 5: Presentation of findings


As a last step of market research process, Results (findings) are extracted from the Analysis of information and are presented to the related party. The researcher should present major findings that are relevant to the major marketing decisions facing management. The findings should be written in a concise, simple and objective orientated language. For the purpose of my project, the analysis was conducted on the basis of following conditions. I have earlier suggested that I am going to categorize the scores into various intervals. Now I have attached scores to all the parameters according to their important.

Research Approaches
Primary data can be collected in five ways: Observation, Focus groups, Surveys, Behavioral-data, and Experiments

Observation research
Fresh data can be gathered by, observing the relevant actors and settings.

Focus group research


A focus group is a gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product, service, organization, or other marketing entity. The moderator needs to be objective, knowledgeable on the issue, and skilled ingroup dynamics. Participants are normally paid a small sum for attending. The meeting is typically held in pleasant surroundings and refreshments are served.

Survey research

Surveys are best suited for descriptive research. Companies undertake surveys to learn about people's knowledge, beliefs, preferences, and satisfaction, and to measure these magnitudes in the general population. Data Sources: The researches can gather secondary data, primary data, or both. Secondary data are data that were collected for another purpose and already exit somewhere. Primary data are gathered for specific purpose or for a specific research project. When the needed data do not exist or are dated, inaccurate, incomplete, or unreliable, the researcher will have to collect primary data. Most marketing research projects involve some primary data collection. Similar is the case in my project. For the purpose of my study I have collected primary data in the form of Nature of Data, and Its function in the ultimate interpretation and analysis.

Types of data
Demographic Sociological Psychographics Behavioral Here I am going to analyze the opinions that how people perceive something what they believe about it and what those believes signify. The most potent form of opinions tends to be attitudes, which are mental sets of pre-dispositions to act in some manner.

Here in my project I intend to analyze the opinions and attitudes of the target population by using appropriate sample. So the data collected in our project is basically demographic and behavioral.

Research Instruments
Marketing researchers have a choice of two main research instruments in collecting primary data: Questionnaires and mechanical devices.

Questionnaires
A questionnaire consists of a set of questions presented to respondents for their answer. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. Questionnaires need to be carefully developed, tested, and debugged before they are administered on a large scale. In preparing a questionnaire, the professional marketing researcher carefully chooses the questions and their form, wording, and sequence. The form of the question asked can influence the response. Marketing researchers distinguish between closed-end and openend questions. Closed-end questions pre-specify all the possible answer. Open endquestions provide answers that are easier to interpret and tabulate. Open-end questions often reveal more because they do not constrain respondents, answers. Finally, the questionnaire designer should exercise care in the wordings and sequencing of questions. The questionnaire should use simple, direct, unbiased wording and should be pre-tested with a sample of respondents before it is used. The lead question should attempt to create interest.

Types of Probability Sample

Simple random sample - Every member of the population has an equal chance of selection. Stratified random sample - The population is divided into mutually exclusive group (such as age groups), and random samples are drawn from each group. Cluster (area) sample - The population is divided into mutually exclusive groups (such as city block), and the researchers draw a sample of the groups to interview.

Types of Non Probability sample


Convenience sample - The researcher selects the most accessible population member. Judgment sample - The researcher selects population members who are good prospects for accurate information. Quota sample - The researcher finds and interviews a prescribed number of people in each of several categories I have conducted the convenience sampling in Gorakhpur region

Primary Methods:
When a researcher directly collects data then this method is known as primary method e.g. interview and questionnaire methods.

Secondary Methods: The data are termed secondary data when they were not originally collected for use in the research project under consideration; they were collected rather for use by some other person or for some other project.

Problems for Research:


To find out the consumer preference of mineral water among various mineral water manufacturers.

To study the market share and growth of Aquafina and to suggest the strategy to increase it further.

Evaluating the growth of Aquafina Channel Partner Satisfaction Level of Channel Partners Various promotional activities that Channel Partners are doing to promote Aquafina to survive among competitors How much focused dealer is towards Aquafina.

CHAPTER 3 DESCRIPTIVE STUDY

OVERVIEW OF TOPIC
During my summer training my topic was COMARATIVE ANALYSIS OF SALES OF AQUAFINA AND OTHER PURIFIED DRINKING WATER.In this project I had to find the total market potential of sales of Aquafina and competitors in the

market.The aim of this topic was to find the position of sales of Aquafina so that company can take the right step toward increase the sales of Aquafina can become the leader in the market. During my summer training survey was depended on the basis of observation the interview to the shopkeepers of the sellers of Aquafina and other purified and bottled

mineral water in the market. The aim of survey was to observe all the shopkeepers who were sellers of bottled mineral water. The project is divided into two parts. The objectives for the first part of the project are: To find out existing competitors of Aquafina. To find out important factors that affect customer satisfaction. To find out the customer service satisfaction level at existing grocery shops. To find out the consumers perception about packaged drinking water. To find out consumers perception about modern shops.

The second part of the project shows the degree of customer loyalty for Aquafina shops in Gorakhpur. The main objectives of the study are: To determine the determinants of Aquafina loyalty of consumers in Gorakhpur. To study the degree of customer loyalty for Aquafina . To test whether the model adopted for study holds true or not.

CHAPTER 4 DATA ANALYSIS

ANALYSIS
1) All sample units under study were sellers of bottled mineral water. 2) No. of shopkeepers selling aquafina and Competitors mineral water: 142 samples were selling Aquafina.

70 samples were selling Bisleri 49 samples were selling Yes 14 samples were selling Kingfisher 12 samples were selling Arofina 10 samples were selling Bailley

sample size

49 Aquafina 14 142 Arofina Bailley Bisleri 70 10 12 Kingfisher Yes

3) Purchasing price per bottle (I lt.) of Aquafina and other competitors:Brands: o Aquafina o Bisleri o Yes o Arofina Price 10 Rs. 9 Rs. 7 Rs. 8 Rs.

o Kingfisher o Bailley

7.50 Rs. 7 Rs.

Purchasing price
12 10 8 price 6 4 2 0
Ye s i Aq ua f in a Kin gfi she r Aro fi n a B is le r Ba il le y

Series2

brand

4) Selling price per bottle(I lt.) of Aquafina and other competitors :Brands : Aquafina Bisleri Yes Price 12 Rs. 10 Rs. 10 Rs.

Arofina Kingfisher Bailley

10 Rs. 10 Rs. 10 Rs

selling price
Arofina Kingfisher brand Bailley Yes Bisleri Aquafina 9 9.5 10 10 10 10 10 10 10.5 price Series1 12 11 11.5 12 12.5
Packing (bottles per cartoon) 20

5) Packing of Aquafina and competitors mineral water :Brands : Aquafina

Bisleri Yes Arofina Kingfisher Bailley

12 12 12 12 12

Packing
20 15 10 5 0 Bisleri Aquafina Yes S1 Arofina Bailley Kingfisher Packing Series1

brands

6) Market capture of Aquafina and other competitors` channel patners :

Brands :Aquafina

Market capture (in %) 68%

Bisleri Yes Arofina Kingfisher Bailley

33.5% 23.5% 6.7% 6.7% 4.8%

Market Caputre
80% 70% 60% 50% 40% 30% 20% 10% 0%
Bis ler i Ye s Ar ofi na Aq ua fin a Kin gfi sh er Ba ille y

Market Capture (in %)

Series1

Brands
( Note all % are in reference of the 209 samples,in which many shopkeepers selling more than one brand at a time.)

CHAPTER 5 CONCLUSION & SUGGESTIONS

FINDINGS

During summer training I got some important findings which are as follows1) The price of 1 litre bottled mineral water of Aquafina is little expensive than others. 2) The price of packing size of Aquafina is expensive so because of it some shopkeepers avoid to buy the packing of Aquafina. 3) Aquafina bottled mineral water is expensive but I found that the total market capture of Aquafina is in good position than others. 4) I found that, somewhere proper delivery of Aquafina is not good so therefore it affects the sales of Aquafina. 5) Some customers do not want to pay more money for Aquafina because other brands of bottled mineral water are available in the market in less price. 6) I found that some customers do not want to take risk for their health and they pay every charges for Aquafina. 7) I found that some areas are not covered properly by the company. 8) I saw that agencies are not providing posters, gifts and scheme to the shopkeepers properly. 9) I found that agency owners do not surveys for their area for taking idea of the shopkeepers as well as the customers. 10) I found that some sales men do not take interest for delivery of mineral water to every shop at the time when they demand. They usually skip the shops.

CONCLUSION

During my summer I found that there is tuff competition in water industry. There are so many competitors of Aquafina in the market.But I found on thing that there are almost all the shopkeepers are having Aquafina. I found that price of 1 Litre mineral water is some expensive than other mineral water and packing of Aquafina cotains 20 bottles becomes some expensive for shopkeepers as well as cuctomers also .

I saw in gorakhpur that there is huge amount of medium class family and they are not able to pay much money for mineral water.When a customer comes to the shopkeeper for buying mineral water they see that there are so many brands of mineral water are available which are less expensive than other brands of mineral water, so they almost want to buy other brands which are cheaper than Aquafina.So if the company will reduce the price little bit, the saling of Aquafina will be at top, because the purity it provides is unbeatable by the competitors.

In conclusion of my project I would like to add that proper and fast delivery is not available in the market therefore the shopkeepers do not get the delivery of Aquafina when it is required. Agency owners do not take interest seriously for survey of the market for knowing the problems of the shopkeepers as well as the customers. They do not motivate the sales men to cover that areas which are left and they do not provide the gifts and offers to the shopkeepers for buying more and more mineral water of Aquafina

SUGGESTIONS
I would like to recommend to the company that 1. Company should reduce the price of 1 Litre bottled mineral water.

2. water.

Company should reduce the size and price of packing of bottled mineral

3.

Company should provide some extra gifts and offers to the shopkeepers.

4.

Company should provide fast delivery.

5.

Company should cover the left areas of bottled mineral water.

6.

Agency of the company should motivate sales men for proper delivery of mineral water

7.

Sales executive of the company should look after every agency for time to time.

8.

Agency owners should survey for the every shopkeepers of their area for knowing Problems of the shopkeepers.

9.

Sales executive of the company should motivate the shopkeepers for buying

10.

Agency owners should provide maximum hoardings and posters to the shopkeepers

for making effective advertisement.

If company will follow these all, it will definitely be able to capture more market share also will be able to make effective sales of Aquafina.

CHAPTER 6 BIBLIOGHAPHY

BIBLIOGRAPHY
Books:

Marketing Management - Philip Kotler (Eleventh Edition) Research Methodology - C.R. Kothari Marketing Research - G.C. Berry

Websites
http://www.pepsico.com http://www.aquafina.com http://www.pepsicoindia.com http://www.google.com

Magazines
Slaking a Citys Thirst, Priyanka Jayashankar and Swetha Kannan, Hindu Businessline, July 14, 2005 Bold and Bisleri, Ratna Bhushan, Hindu Businessline, April 25, 2002 Water Woes and Bottle Battles, Nityanand Jayaraman Business Today Business Standards Outlook

CHAPTER 7 ANNEXURE

ANNEXURE

1) Name of outlet . 2) Address of outlet 3) Type of outlet . . . . .

4) Types of brands you have

5) Purchasing price of aquafina and other brands which you have? 6) Selling price of aquafina and other brands which you have? 7) Sizes of packaged drinking water you have? 8) What size of bottled water commonly sold? 9) Packaging sizes of bottled water (cartoons size) 10) Daily sales

. . .

. .

11) What type of problems are you facing?