SUBMITTED BY RENU DUTT SACHDEV Batch & Session : FE-2 & 2010-12 Student ID: D1012FWISBE-A10247-(NOI-NA-2067

)
VARUN BEVERAGES LTD.

MARKETING STRATEGIES OF PEPSI IN NOIDA & NCR
AT NOIDA & NCR

Duration: June 20th to August 5th, 2011

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Certificate

This is to certify that

Ms. Renu Dutt Sachdev , Student Id

D1012FWISBE-

A10247-(NOI-NA-2067) a student of IIPM has worked on Project titled “Marketing Strategies of Pepsi in Noida & NCR” in partial fulfillment of the requirement for the programme. This is her original work to the best of my knowledge.

Date: Seal:

Signature (Faculty Guide)

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ACKNOWLEDGEMENT
Successful completion of any endeavor requires the help and creative energy of many people and this project is certainly not an exception. I am indebted to Mr. Sharad Vats (Marketing Development Manager) for being my being my Industry Guide and rendering his cooperation & support, sharing his knowledge and providing guidance through out the project. I take this opportunity to thank my faculty guide ____________________who has given me opportunity to work under his guidance and has being the source of inspiration to me.

Date: Place: Renu Dutt Sachdev

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” I gained valuable experience & knowledge during the survey. Greater Noida a leading Bottler and Marketing partner of the Pepsi. 4 ..PREFACE The research project is necessary part for fulfillment of MBA course. I undertook my project in Varun Beverages Ltd. This has given a chance to try and apply the academic knowledge and gain insight into corporate culture. During the training. This helps in developing decision-making abilities and emphasizes on active participation by the student. The emphasis in the project is providing the study and an insight into Indian FMCG Business Scenario. The research report is designed to provide participation of BBA program as on the job experience. I had worked on the project “Marketing Strategies of PEPSI in NOIDA & NCR. then analyzed conclusions were drawn and finally suggestions were put forward. The Project consists of my findings after tabulation of collected data.

CONTENTS PREFACE  EXECUTIVE SUMMARY  COMPANY PROFILE  PRODUCTS PROFILE  CREDENTIALS  OBJECTIVES  RESEARCH METHODOLOGY  FINDINGS & OBSERVATIONS  ANALYSIS  RECOMMANDATIONS  LIMITATIONS  MAIN KEY POINTS  CONCLUSIONS  QUESTIONNAIRE  BIBLIOGRAPHY 5 .

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e. The distribution system not only comprises the movement of the products but also incorporates the merchandising of the product. the retailers. The project was that of market research with surveys and observations as its major phases with the objective of gathering of all important information material for strengthening the position of PEPSI in NOIDA & NCR.. The entire process had to be in an organized manner in order to deliver meaningful results for the purpose of decision-making. PEPSI boasts of having the maximum market share in the beverage segment in NOIDA & NCR and is in constant process for the betterment of its product performance and customer as well retailer’s satisfaction. 7 . The project incorporates the analysis of the performance of PEPSI and probing into opportunities of increasing the market share in NOIDA & NCR. development and betterment of this system. Emphasis of our study was to focus on the customer of company i.EXECUTIVE SUMMARY The distribution network of PEPSI is well known for its efficiency but company constantly strives for the betterment of their distribution network system. The Retail Mapping of NOIDA & NCR is an integral step for the assessment. which is very broad in its purview.

COMPANY PROFILE 8 .

Pepsi Stepped up its competition with its long time archrival claiming victory in the Cola-wars. restaurants and food service customers in more then 190 countries and territories around the world and generates revenue of over 18 billion dollars PepsiCo World Headquarters is located in Purchase. Frito-lay. Pepsi Co. of USA. Taco bell and KFC chains PFS. Pepsi Cola Company now produces and markets nearly 200 refreshment beverages to retail. The Snacks food divisions manufacture and distribute and markets others snacks worldwide. It consists of many companies amongst which the prominent ones are Pepsi Cola.S. The group is presently into three most profitable businesses namely. They are positioned in close competition with Coca Cola inc. supplies to Company owned and Franchise restaurants in the U.market. Pizza-hut. The beverages segment primarily market it Pepsi diet. The restaurant segment primarily consists of the operations of the worldwide Pizza-Hut.THE COMPANY PROFILE: PEPSI CO.1 Lipton in response to Coke’s announced venture with Nestle (Nestea). KFC and Taco bell. is the world leader in the food chain business. 9 . Caleb Bradham a New Bern N. Pepsi Mountain Dew and other brands worldwide and 7UP outside the U. New York.S.C druggist who formulated Pepsi Cola founded Pepsi Cola Beverage business at turn of the century. When Coca Cola changed its formula in 1985. PepsiCo’s restaurant distribution operation. Beverages Snacks foods and Restaurants. Pepsi food international. Coke and Pepsi expended their rivalry to tea in 1991 when Pepsi formed a venture with No.

“Generation Next”. This enormous ad budget allows Pepsi to reinforce their products with reminder advertising 10 . This was the new color adopted by the company to strengthen its brand globally.968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of 1997. Those Pepsi’s main emphasis on this segment they also have a focus on the 12 to 18 year old market. They have high expectations in life and are very mobile and active. The soft drink industry customer base is probably the widest and deepest base in a world that is flooded with some many categories. These terms adopted in Pepsi’s advertising campaigns are referring to the markets that marketers refer to as Generation X. Pepsi Cola throughout its 100 years of existence has developed much strength. Pepsi prefers to segment itself as the beverage choice of the “New Generation”. Pepsi also has the luxury to spend 225 million dollars in advertising a year. One of the strengths that has developed Pepsi into such a large corporation is a strong franchise system. Although Pepsi holdings over the years have become diverse in such fields as the Snacks industry and Restaurants industry. this portfolio will discuss its core business and its highly successful business of Beverages. They adopt a lifestyle of living for today and not worrying about long-term goals.“Pepsi Co is going blue”. The Generation X consumer is profiled to be between the ages of 18 to 29. The strong franchise system was the backbone of success along with a great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring Pepsi from a 7. Pepsi believes if they can get this market to adopt their product then they could establish a loyal customer for life. or just as the “Pepsi Generation”. This represents a large field of potential customers for Pepsi Cola. According to Beverage Digest the customer base for soft drinks is a whopping 95% of regular users in the United States. Also the company is changed colors from Generation X to GENERATION NEXT.

Some other strong brands are All Sport. Probably high on the list of strengths is Pepsi’s beverage line up. These brands are Pepsi. Pepsi also has had the good fortune of making very wise investments. They have also made wise investments in snack food companies like Frito Lay. Pepsi has four soft drinks in the top ten beverages in the world. Starbucks. Diet Pepsi. Mountain Dew. and Caffeine Free Diet Pepsi . 11 . Tropicana. Some of the best investments have been in their acquiring several large fast food restaurants. Slice. This large budget also allows Pepsi to introduce new products and very quickly make the consumer become aware of their new products. Aquafina and a license agreement with Ocean Spray Juices. which at present time is the largest snack company in the world.and promotions.

The Generation X consumer is profiled to be between the ages of 18 to 29. These terms adopted in Pepsi’s advertising campaigns are referring to the markets that marketers refer to as Generation X. Pepsi prefers to position itself as the beverage choice of the “New Generation”. or just as the “Pepsi Generation”. 12 .PRODUCT POSITIONING OF PEPSI CO. Though Pepsi’s main emphasis is on this segment but they also have a focus on the 12 to 18 year old market. The rich deep blue coloring represents eternal youthfulness and openness. “Ye Pyass Hai Badi” have made Pepsi one of the coolest brands recognized among teens in the top five and the only beverage product in this category. They have high expectations in life and are very mobile and active. Marketing plans like “Yeh Dil Maange More”. They adopt a lifestyle of living for today and not worrying about long-term goals. “Got Another Pepsi”. “Generation Next”.

STRENGTH & WEAKNESSES OF PEPSI CO. marketing. This enormous ad budget allows Pepsi to reinforce their products with reminder advertising and promotions. sales and promotional support to Pepsi-Cola bottlers and food service customers. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. This includes some of the world's bestloved and most-recognized advertising. 13 . New advertising and exciting promotions keep Pepsi-Cola brands young. Pepsi-Cola provides advertising. One of the strengths that have developed Pepsi into such a large corporation is a strong franchise system. Pepsi also has the luxury to spend 225 million dollars in advertising a year. This large budget also allows Pepsi to introduce new products and very quickly make the consumer become aware of their new products.968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of 1997. The strong franchise system was the backbone of success along with a great entrepreneur spirit. Pepsi Cola throughout its 100 years of existence has developed much strength. The company also provides fountain beverage products. Pepsi’s franchise system and distributors is credited to bring Pepsi from a 7.

Pepsi has four soft drinks in the top ten beverages in the world. which at present time is the largest snacks company in the world. Tropicana.1 tea in the United States. Pepsi in today’s market must be able to act as one instead of several separate units. Lipton Tea. Pepsi Cola like any company has weaknesses. Starbucks. Mountain Dew. Some of these franchises are unwilling to support certain Pepsi 14 . Ironically. Aquafina and a license agreement with Ocean Spray Juices.Pepsi also has had the good fortune of making very wise investments. Slice. the one strength that has been credited for most of its success in the past has now become a weakness for Pepsi. Pepsi also has the No. These brands are Pepsi. Diet Pepsi. Some other strong brands are All Sport. The franchise system has become a hurdle to Pepsi because many of these franchises have become very strong and will not be dictated by PepsiCo on how to handle their operations. This former strength is the franchise system. and Caffeine Free Diet Pepsi . The franchise system in Pepsi Corporate view has become a liability. They have also made wise investments in snack food companies like Frito Lay. Probably high on the list of strengths is Pepsi’s beverage line up. Some of the best investments have been in their acquiring several large fast food restaurants.

Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena.products and at times produce their own private label products that are in direct competition with Pepsi products. The franchise system has also affected fountain sales due to the fact franchisees are not willing to buy expensive fountain equipment to place in accounts mainly because the profit margin is so low and could take years to recoup their investment. price. 15 . Pepsi has tried to enter this market by trying to do in three years what took Coke 50 years to do. Pepsi also has a weakness in the international beverage market. Secondly the franchisees are not willing to make capital expenditures to keep up with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola at present time does not operate a franchise bottling system). Pepsi customers buy nearly five billion gallons of soft drinks per year. As mentioned earlier Pepsi has tried to elevate this problem by spinning off their interest in fast food restaurants but at present time are still guilty by association to many of the large fountain accounts. packaging and promotional factors and of a wide variety of brands. This area will take years for Pepsi to mature simply due to Coke’s dominance in the international market and the strong ties that Coke has developed with these markets and their governments. Pepsi customers also buy their products due to the high accessibility of Pepsi brands. Pepsi customers buy their products because of taste.

Mountain Dew has grown a staggering 74. Movie theaters and almost and other conceivable spots. At this current pace Mountain Dew will be come the first non-cola to reach the 1billion gallon mark in one year. supermarkets where Pepsi buys large shelf area and display areas so the customer can find them easier. which Pepsi spent 637 million dollars over five years. Restaurants. Convenience stores. Another competitive advantage that Pepsi has is in their product Mountain Dew. Marketing plans like this made Pepsi one of the coolest brands recognized among teens in the top five and the only beverage product in this category.4 soft drink in America. The rich deep blue coloring represents eternal youthfulness and openness. This marketing plan. is to introduce the new rich deep blue coloring of its packaging. viz. Pepsi has a competitive advantage over Coke because of the image it portrays.3% market share and has recently become the No. Pepsi gets this advantage by implementing such large marketing projects like “Project Globe”. For example. Pepsi promotes itself as the choice of the “New Generation”.1% over the last five years. Mountain Dew has a 6.Pepsi products are distributed to many outlets. 16 .

Pepsi has always been a strong No. This new sweetener is slated to be a break through for diet soda in which it limits the after taste associated with diet soda and brings a more cola taste to the product.Pepsi also has an advantage as an innovator in their field. As far as market share is concerned Pepsi stands strong. 17 . just approved by the FDA. Ace-K. They are the first soft drink makers to introduce a new one-calorie soda called Pepsi-One with.2 against Coke and have become one of the world’s largest Companies.

Snack foods and Vegetable and Food processing. the company entered the Indian market through a joint venture with Voltas and Punjab Agro Industries. 1999) • This reflects that India holds a central position in Pepsi’s corporate strategy.PEPSI-THE INDIAN EXPERIENCE • Pepsi is one of the most well known brands in the world today available in over 160 countries. which include more than a third of the world’s population. PepsiCo entered India in 1989 and is concentrating in three focus areas – Soft drink concentrate." (PepsiCo’s annual report. The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flown in. 18 . Pepsi took complete control of its operations. and at the same time the company has added value to Indian agriculture and industry. The company has an extremely positive outlook for India. With the introduction of the liberalization policies since 1991. "Outside North America two of our largest and fastest growing businesses are in India and China. India is a key market for PepsiCo. • Faced with the existing policy framework at the time. • One of PepsiCo’s key strategies was to develop a completely local management team. Pepsi has 19 company owned factories while their Indian bottling partners own 21.

Research & Development. Pepsi in a short span of its operations in India has found a place in the hearts and minds of the Indian consumers. Marketing.covering fruit/vegetable processing. Distribution and Franchising. The RKJ group is India's leading supplier of retailer brand Carbonated and NonCarbonated soft drinks. with beverage manufacturing facilities in India and Nepal. In the mean time Pizza Hut and Frito Lay’s are the examples in this regard only. The success has primarily been due to the innovative and passionate Indian team. Pepsi started its operations in India in 1989 and since then PepsiCo has set up a fully integrated operation in India viz. Pepsi is a trendsetter managed and run by Indians. out of which 16 are company owned and 24 are owned by Indian franchisees. Manufacturing. Exports. which has been built over the years. Its 19 . The advertisement tag ‘yehi hai right choice baby’ was the first ‘Hinglish’ slogan ever used in the in the Indian market. where important decisions are taken locally. One of the major player in franchisee is RKJ Group. This slogan proved to be the best suited one for Pepsi and it was a mega hit and at that moment of time. Snack Foods & Beverages.The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official about it’ immediately ring a bell.it’s got to be Pepsi. Pepsi has 40 bottling plants in India.

half of Haryana. It has the license to supply beverages in the territories of Western U.. suiting and shirtings. beer plant in Mauritius & edible oil plant in Sri Lanka.P.experience in the beverage industry dates back to the sixties when it had the first franchise at Agra.. 3 districts of Maharashtra.P. This group has brought name and fame to the Pepsi as in all this regions Pepsi is at the commanding position and in the mean this group has diversified itself into ice cream. Goa. 20 . The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India. 9 districts of Karnataka and whole of Nepal. restaurants. whole of Rajasthan. part of M.

PEPSI – BRANDS AND PACK PROFILE BRAND PACKS: The products are generally available in three kinds of packaging: 21 .

• GLASS BOTTLES • DISPOSABLE CANS • PET JARS 22 .

FLAVOUR PACKS: COLA (Carbonated Soft Drink): • PEPSI 23 .

ORANGE: • MIRANDA ORANGE • MOUNTAIN DEW • 7UP 24 .

MANGO: • SLICE MANGO DRINKING SODA : • EVERVESS SODA 25 .

MINERAL WATER: • AQUAFINA Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known is one of the largest FMCG market in the whole world with the total annual sales of around $40 billion. 26 .

THE RKJ GROUP It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself.. 27 . Headed by Mr. K. The manufacturing facilities were restricted at Agra Plant only. Food Chain and Education. The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically predefined territories in which brand and technical support was provided by the Principals viz. food and beverages. the group as on today can lay claim to expertise and leadership in the fields of education. R. Jaipuria. Their services touch different aspects of commercial and civilian domains like those of Bottling. Pepsi Foods Limited.

K. R. Chairman of the Board & C. The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. President of Pepsi Cola Company. professionally managed. Donald M.E. in the presence of Mr. and Mr. It has total 27 Pizza Hut Restaurants under its company. It has exclusive franchise rights for Northern & Eastern India. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii.O. Roger A.. the 41st President of USA. MAJOR CREDENTIALS 28 . Kendall. founder of PepsiCo Inc. PepsiCo Inc. George Bush. Enrico. Craig Weatherup. unlisted and closely held between Indian Promoters and foreign collaborators.The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. Mr. The award was presented by Mr. They have diversified into education by opening their first school in Gurgaon under the management of Delhi Public School Society. USA. Companies are medium sized.

 VARUN BEVERAGES LIMITED RECEIVED “ GOLD STANDARD AWARD” FOR PRODUCTION & QUALITY CONTROL FOR THE YEAR 1996-1997.  JAIPURIA GROUP WAS ADJUDGED “BEST BOTTLER” OUT OF MORE THAN 2000 BOTTLERS ALL OVER THE WORLD FOR THE YEAR 1996-97. 29 .

LOCATIONS OF BOTTLING PLANTS OF PEPSI IN INDIA 28 .

The findings of the project are very crucial for the increment of the market share of PEPSI in the NOIDA & NCR Beverage Market. 29 . This support can only be provided with the help of an extensive and through analysis of the market and the data collected thereof. He was the in charge of the project and gave guidelines and directions to approach the project. packs and flavors available in the market. The objectives of the project are:   To analyze. The objectives of the project were delivered to us express sly by the Marketing Development Co-ordinator who was the lead or the project head and we had to submit the day report to him along with the draft report. Comparative study of the various brands. interpret and study the entire beverage market of NOIDA & NCR. Though the process is an ongoing one but the decisions have to be taken on a strong base.OBJECTIVES OF THE PROJECT The Project “Distribution Network & Market Share of PEPSI in NOIDA & NCR” was designed on the lines of basic investment decisions to be taken by the senior officials of PEPSI for the purpose of amendments in the pre-existing distribution network in order to review and strengthen the routes. supported by facts and figures and that too on papers.

which were as under: 1. Assess the promotional measures in the context to the sales of PEPSI and focusing our study on the customer of company i. The market research conducted by us was in accordance to the company’s rules and policies which were quite material for the efficient and effective results and inferences to be drawn from the entire process. The market research was conducted in compliance of the given guidelines delivered to us expressly to achieve the given objectives. As obvious that any company is concern with the increase in sales of its products. To assess the reach and feasibility of the product and give the output for further investment for enhancing the distribution network along with assessing the efficiency of the current distribution system.e.   our project was in line with the companies’ objectives and all steps incorporate in the project were directed to give an overview so as to attain its objectives. Improvement 5. To satisfy the customers 30 . Profitability 2.. the retailers. Analysis of the strong and weak point of the competitors products and compare it with PEPSI. Sales 4.

The five phases into which the project was divided were: A. analyzed and reported in a form congenial to take on the spot decisions. which is very fast in production. 31 . distribution and consumption. C.RESEARCH METHODOLOGY THE MARKET RESEARCH PROCESS The entire project was divided into five phases and each phase had its individual significance and supplemented each other. The data collected had to be systematically arranged. D. The survey was conducted on the basis of PEPSI product preference and evaluation of sales forecast in the new and underdeveloped market including the evaluation of the advertising and promotional measures. B. The process had to be started from the grass root level and it was very important to understand the market for this FMCG product. E. Route Riding Retail Tracking Corporate Tracking Analysis of finding and observations Segregating NOIDA & NCR for WAP and SAP The entire process was more of a Descriptive Research type and incorporated a formal study of the specific problems faced by most FMCG companies an exploring the opportunities in the untapped market.

All the phases mentioned above have been discussed along with the observations. 32 . and other dimensions which have been encountered and experience in detail in the following pages. problems.The observation approach was adopted in the process by gathering the data essential and material for the decision-making and with clear objective of increasing the market share of PEPSI in the NOIDA & NCR market. Customer preferences and satisfaction was also important in assessing the market share but that was very clear that customers generally do not have loyalty towards the product in the Beverage industry rather what matters the most is the product availability which will be discussed later.

marketing. So in the Soft Drinks Company as PEPSI. ROUTE RIDING : The Beverage Industry or to be more specific. • To gain an in depth knowledge of the merchandising and processing activities of the Route Agents and understand the Beverage market. route riding becomes the first and foremost step in any of the activities to be undertaken be it any official so we were no exceptions. the Soft Drinks Industry has one of the most active network in term of its production. That is the reason why it is sometimes said to be “ Very Fast Moving Consumer Goods”. supply. consumption and also personal relations at the very second level of its distribution network. Due to the above stated reason it becomes very essential to study and analyze the market of these products from the grass root level. distribution.A. 33 . During the very initial days we were required to exercise Route Riding. the objective of which was: • To understand and analyze the market in its raw and basic form.

A. The vans had to cover the entire route and the RA had to do the 34 .. The Routes i. the Pepsi Vans were charged and left the depot by 7:30 in the morning.’s). flavors. Route Riding is basically accompanying Pepsi Vans along with the route agents and understanding the way they conduct merchandising activities right from the charged vans leave the depot to the entry of empty vans back to the depot. and quantities along with the billing materials. The Route Riding phase was for the initial twinty days in which we had covered twinty different routes. The Route Riding is a crucial phase because the actual dealing with the retailers and their dealing with the customers can be very efficiently understood through this process which is important at all levels of decision making in the industry. • To develop innovative ideas to enhance the distribution system.• To undertake the comparative study of the various brands and flavour packs of all existing beverages or soft drinks market and the market share and growth potential of each brand individually. The RA’s were given the route planners and the particulars of the products.e. accompanied by the Route Agent (R.

merchandising and sales against cash, which was a significant feature of this industry. The targets were given twice or thrice in a week that was a challenge for them and after achieving these targets the RA’s was awarded with some special incentives. As there exists a player like Coca Cola. So it had a lot to do with schemes, discounts and other incentives.

The routes were allocated on the basis of individual areas and the demand of the product in that particular area. The RA’s been responsible for the accomplishment of their sales target on their routes and was given incentives on achieving the targets. Not only this, the RA’s also had the responsibility of moving the flavors and packs in proportion along with the proper display of the products for proper visibility and arrangement of products in brand order along with “ VISI purity”.

The RA’s had the responsibility of setting up Monopoly PEPSI Sales Counters where no products except that of PEPSI would be available amongst the soft drinks and especially of Coca Cola. These monopoly sales counters enjoyed special benefits in terms of discounts, schemes, VISI’s (fridges), display boards, glow signboards, wall paintings, banners, posters and other incentives.

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The RA’s had to achieve their sales target and surrender the daily sales proceeds with the concerned Customer Executives along with the route planner and billing materials and gate pass along with the details of sales on their route.

The entire activities of the RA’s was controlled by the Customer Executives, who also assisted the RA’s in achieving their targets and were in charge of the sales performance in their assigned areas. A Customer Executive had nine to ten RA’s under him and was responsible for their performances as well. He was also concerned with the promotional activities on his routes and handling of policy matters in the corporate regarding supply to industrial canteens and cafeterias.

We as Research trainees were required to study and analyze the activities of the RA’s and be familiar with the market. We had been provided Market Analysis Sheets by the MDC in which we were required to record the observations of the retail outlets on a particular route.

The observations, which were required to be recorded in, were:

• The quantity of the cold and warm stocks of all brands and flavors available at the outlet along with the outlet details.

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• Inquiring about the satisfaction of the retailers in terms of sales of PEPSI products, schemes, discounts, combo offers, and the benefits of promotional activities.

• Inquiring about the satisfaction by the current distribution network in context to product availability of all flavors packs or individual flavors according to demand of customers, rates billings.

• Inquiring about the behavior and merchandising of RA’s in accordance with the companies’ regulations and record complaints against RA’s, company or products, if any.

• Inquire about the performance of various brands and flavors packs and customer’s response to those brands or flavors and also to educate the retailers about various schemes and incentives to increase sales volume.

• Last but not the least, assessment of the effectiveness of, assessment of the effectiveness of promotional materials and activities like, display boards, glow signs, signage, wall paintings, posters, banners, racks, shelves, counters, VISI’s, and also impact of nation wide advertising on brand loyalty by the customers.

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The new routes. The retail mapping had to be conducted on the basis of the Retail Tracking Sheet (RTS). respondent etc and served as a vital database for all market since then for PEPSI in NOIDA & NCR and had to be incorporated in the project in accordance to the companies policies. B. 38 . RETAIL MAPPING OF NOIDA & NCR: The Retail Mapping is the integral part of the project and the most crucial is taking significant decisions regarding the enhancement of the distribution network involving heavy investment on account of increasing the routes and starting new routes and promotional measures on those routes to increase its market share in NOIDA & NCR. their addresses.The information so collected was required to be filled in the Market Analysis Sheet (specimen on the next page) and reported to the MDC along with other information in order of their seriousness. proprietor. which had been developed by the Marketing Development Coordinator and Customer Executives of the NOIDA & NCR unit which incorporated the retail outlets. exploring new markets required the decision to be supported with facts and figures which had to be provided by the Research trainees on the basis of the survey conducted in the market and processed data there of.

The entire survey was guided and directed by the Customer Executive and Daily report had to be presented to him after assessment and analysis along with other findings and observations. The Data had to be classified in a systematic manner and presented in a predefined format. which was further reviewed by the Marketing Development Coordinator.e. • Classification of all retail outlets in NOIDA & NCR into five broad categories viz.. • Collection of required information for making investment decisions for the enhancement of existing routes and opportunities for new routes in existing market as well as exploring new market. Non Existence. • Assessment of retailer’s performance. SAP and WAP. Non Potential. The duration for the completion of the Retail mapping took duration of 20 days. Potential Retail Outlets. Reachable and Non Reachable under the head.Objectives of Retail Mapping: • Segregating entire NOIDA & NCR for Strong Area Programme and Weak Area Programme i. 39 . On Route. • Assessment of the level of promotional measures required for increasing market share of PEPSI.

On the contrary the Weak Area refers to those areas or routes. which have been omitted or newly opened. The marketing efforts are nominal in these areas because of the surplus demand and the area of concern is only to ensure the proper and efficient supply of the products to meet the demand. which are critically low in sales and the targets. It is not the area of serious concern for the company.The Retail Mapping process incorporated of including of new outlets. are tough to achieve and require aggressive marketing support. The demand in these areas is fluctuating or rather feeble. For these Strong areas. and the product availability on all these outlets. hotels. In the NOIDA & NCR market approximately 32% of the market can be said to be strong areas and these areas include the well-developed markets as shopping malls. The 40 . convenios. The Strong Area refers to the routes on which the sales targets are met without much effort and have continuous demand for the products. The major thrust was on segregating the market for Strong Area Programme and Weak Area Programme. These areas are performing to the standards and are contented with the level of promotion schemes and other sales boosting measures. restaurants and bars etc . movie theatres. SAP only aims at maintaining the performance of the product and enhancing the sales volume.

These weak areas had to be identified and the cause of their inferior performance had to be traced through the Retail Mapping and the company had to be provided with the facts and figures to take legitimate measure on the basis of the findings of the deficient performance of the product in these areas.  ON ROUTE : It refers to the retail outlets. For this purpose the classification of the outlets into five categories was very crucial along with the other findings and observations discussed later. The outlet is visited daily and actively involved in the sales of all brands and flavor packs of PEPSI. These five heads of classification have been discussed as under. 41 . This involved the aggressive marketing strategy and heavy investment decisions to strengthen these markets.routes are the area of concern for the company as the demand is very low due to many reasons and the major one is the existence of the player like Coca Cola in the market. which are covered by the Route Agents and visited daily for sales and merchandising. undeveloped market as that of the interiors etc. Other reasons could be poor distribution network. inadequate availability of the products on the outlet. inadequate promotional measures and marketing support.

i. as they would turn to be potential in near future. which are in existence but have very low potential in terms of sales or are not keenly interested in merchandising the products of soft drink. which have the potential for the merchandising of PEPSI and have the required investment capabilities and can be the 42 .  NON POTENTIAL: It refers to those outlets.e. It was also the area of operation of project to motivate these Non Potential outlets to undertake the merchandising of PEPSI. NON EXISTENCE: It refers to the outlets which were merchandising the product are no more in existence.  POTENTIAL OUTLETS : It refers to those outlets.. they have diversified their business activity or have closed. A careful assessment had to be done in case of Non Potential outlets.

e. dealt with beverage products. 43 . and those. which did not. The reachability decision had to be taken in context to the accessibility of the vans at these outlets..profitable Point Of Purchase of PEPSI by the customers. The possibilities of setting monopoly counter were very fair at these outlets and were given special attention. These outlets had to be considered because the sales volume can be increased at these outlets and so alternative method of distribution and promotional activities have to be evaluated and worked upon. the products can be made available with the PEPSI vans. o NON REACHABLE POTENTIAL OUTLETS : It refers to those Potential outlets which are not accessible by the PEPSI vans. which were already merchandising PEPSI. There were cases in case of these potential outlets. The Potential outlets had to be further classified in two heads as below: o REACHABLE POTENTIAL OUTLETS : It refers to those Potential outlet which are reachable i.

The process of Retail Mapping was followed by the Corporate Mapping.C. CORPORATE MAPPING : NOIDA & NCR being an entirely industrial city had huge potential for the sales of PEPSI in corporates as these concerns had factories. 44 . Apart from these the database had to be updated to turn the non-potential market in the corporate into profitable liaisons for the increment of sales volume. which incorporated of tracing of the organizations and assessing the market for PEPSI in these areas. offices and canteens and the officials and workers base was very strong.

or other occasions and the customers i. delegations. whether the officials or workers or both. daily..  To ensure efficient supply and record any complaints or grievances thereof. parties.g.  To assess the product availability and demand of the product (Traffic) in these organizations as well as when the product has the optimum consumption e.e. meetings.  Estimate the brand preference of PEPSI and COKE in the corporates and the reasons thereof.  To review the product performance and satisfaction along with the expectations of the customers in corporates including PEPSI Dispenser Equipments. 45 .THE OBJECTIVES OF CORPORATE MAPPING WERE:  Trace the organizations with and without canteens and cafeterias and estimate the market for PEPSI.

46 . The analysis and findings were recorded on the format provide by the company accompanied by the list of findings and observations in order or their preference and seriousness along with all the relevant details about the organization. The corporate matters had to be given a special care as these had huge potential for the product. To assess the promotional measures being adopted by Coca Cola for tapping these markets and locate the weak points in corporates having Coca Cola counters to convert them into profitable opportunities. The findings and observations have been discussed in the coming pages. The matters were discussed and analyzed carefully by the MDC. The specimen copy of the Corporate Mapping format is attached for reference. The Corporate Mapping was the supplementary programme in the project to boost the sales performance of PEPSI in NOIDA & NCR and capture the market share of its nearest competitor.

47 .

E’s after analysis by the trainees it was further analyzed and evaluate by him and a brief analysis was made each day of the daily report. to MDC for further review and reference. 48 . ANALYSIS OF FINDINGS AND OBSERVATIONS: The main objective of the company is to increase the brand preference and market share so any information material form this point of view had to be take into account along with the formats provided by the company for predefined information recording and analysis of those recordings and present the information in an organize and systematic manner in a condensed form reflecting the actual position of the market. After the analysis sheets and formats have been surrendered to the C.D. The information had to be recorded in the format along with the relevant information as per the objectives of the research and an analysis of that information had to be made and present them in an understandable format so that immediate inferences can be drawn. The CE’s further forwarded these reports after retaining the reference copy. Generally those information had to be presented in percentages and the other findings and observations had to be evaluated and a list of findings had to be arranged in order of their seriousness and areas of serious concern along with the outlet details.

These Programmes have been discussed under the Retail Mapping Head. The reports were analyzed thoroughly by the Customer Executives and a meeting was held for the assessment of the routes and the reasons of unfavorable performance in the weak areas and how to improve the sales on those routes. which gave the entire picture of the actual position if PEPSI in NOIDA & NCR.E. The finding of the Route Riding and the Survey conducted during the Retail Mapping and the Corporate Mapping were combined together and analyzed together to reach a final report ie. the RETAIL MAPPING SUMMARY or THE CONDENSED DRAFT REPORT. The discussion comprised of the further investments for the enhancement and extension 49 . The Data and fact collected by the survey had to be analyzed and presented in a systematic form in order to draw meaningful inferences. The report so prepared was on the basis of the Retail Tracking Sheet and the other supplementary finding and observations were considered to reach a consensus of declaring the route as a weak area or a strong area. SEGREGATION OF NOIDA & NCR FOR SAP AND WAP : As discussed earlier that the major objective of the Retail Mapping of NOIDA & NCR was to segregate the market for PEPSI for the Strong Area Programme and the Weak Area Programme.

These data and figures were compared with that of the last year and a growth percentage was reached which also served as a basis of declaring an area as a Weak Area. was to be known as Gate Meeting.A. As already mentioned PEPSI is a VFMCG so the marketing strategies are going to be very dynamic in nature. The programmes were to be based on the seriousness of the problems and accordingly a mild or aggressive marketing.E. promotional and investment programme was to be formulated. The Customer Executives had to formulae day to day strategies and these were communicated to RA’s in the morning when they were going to leave the depot and this interaction among R. 50 . The performance of Coca Cola was also reviewed simultaneously and a comparative study was made to assess the performance and growth in the industry.of the routes and the level of promotional measures required in these areas.and C.

at the right time is the key for winning consumer in soft drink business. Coke and Thumps up. The information so recorded in each phases of the project had to be listed in order of their relevance and seriousness and presented in a form to facilitate immediate inference. 51 . at the right place.  The most important and satisfying observation was that. facts and figures and significant findings and observation to support the feasibility of decisions to be taken on the basis of the Retail mapping Summary or the CDR.e.. PEPSI had approximately 64% market share in the soft drinks market in NOIDA & NCR and some of its brands like Mirinda Orange and Mountain Dew were performing above standards apart from PEPSI Cola in spite of the Coca Cola with two cola flavor packs i. SOME OF THE IMPORTANT OBSERVATIONS HAVE BEEN LISTED BELOW:  Soft drink business’s behavior is not governed by brand loyalty so the availability of the right brand. data.FINDINGS & OBSERVATION The reports of each phase of the project had to be supplemented by the information.

which is one of the reasons for the dissatisfaction of retailers.  The cut throat competition between PEPSI and COKE had lead to the never ending cola war and price war which has brought down the profit margins which is one of the major grievances apart from the common complains pertaining to schemes. as they do not move the schemes and other display materials and incentives information to the retailers. 52 . racks. display materials such as VISI’s. signage. wall paintings and better amount for purchase of shelf space for display. The present distribution system of PEPSI is the best in the entire FMCG industry in NOIDA & NCR and the major strength of PEPSI.  The existence of sub-dealers and super stockiest are also the major area of problem. counter. discounts. The enhancement in the distribution network would definitely increase the market share of PEPSI.  The retailers played a very critical role in the increment in the sales volume of the product and the had to be kept satisfied in order to increase the market share by offering better schemes. incentives and display materials.

53 . The other major issue was the supply of PEPSI from the bottling plants in Delhi and Punjab against the company policies.  The position of PEPSI in the corporates was not up to the mark and Coca Cola had a better scene in this context. These plants supplied the products at discounted rates and violated merchandising principles of PEPSI.  Another critical issue was the presence of duplicate products of PEPSI in the market. The details of these outlets have been surrendered to the company for action against these outlets. One of the reasons can be assigned to the product positioning of PEPSI and Coca Cola.

Analysis 54 .

MARKET STATUS OF PEPSI PRODUCT PEPSI-COLA PRODUCTS Aquafina 7% Lehar 7-Up 9% Pepsi 24% Lehar Soda 4% Mirinda Orange 14% Slice 20% Mountain Dew 19% Mirinda Lemon 3% 55 .

PREFERENCE OF SOFT DRINKS IN QUANTITY 2 LT. 24% 330 ML (CAN) 2% 600 ML 12% 300 ML 25% 200 ML 37% 56 .

RATIO OF CONSUMPTION OF SOFT DRINKS PER 100 CONSUMERS Once in a week Never 3% 1% Occasional y 4% Daily 13% Twice in a week 12% Often 67% 57 .

The other Statistics and finding have been presented in the form of various charts on the coming pages: DEMAND OF SOFT DRINK 58 .

15 MIRINDA.CONSUMTION OF PEPSI BRAND PEPSI 7UP. 10 SLICE.DEW MIRINDA SLICE 7UP OTHERS M.DEW. 40 M. 15 OTHERS. 5 PEPSI. 15 59 .

11 COCK. 45 PEPSI COCK OTHERS 60 .RATIO OF PEPSI AND COCK IN NOIDA & NCR OTHERS. 44 PEPSI.

as they are the most important supplement to the sales promotion measures and nationwide advertising campaigns of the company in context of boosting the sales and enhancement of the brand image of PEPSI. 61 .  Activities of sub dealers and super stockiest should be controlled and checked in order to ensure fair prices and distribution of schemes and incentives to small retailers to avoid discontent among smallholdings and outlets. which are offered to the retailers and should be based on a specific parameter such as sales volume. required suggestions to be put forward on the basis of the current market scenario. and discounts. schemes. But some critical and major issues.  Every possible step should be taken for the satisfaction of the retailers. which have been identified on account of extensive analysis.RECOMMENDATIONS The Project Retail Mapping was concerned only with providing the organization with all the necessary information required to strengthen the position of PEPSI in NOIDA & NCR in the form of reports incorporating all information in an analyzed and summarized form.  There should be uniformity in. to avoid dissatisfaction and biasness among the retailers.

They also said that executive give very bad response to their complaints.  Rural market being a very potential segment needs very quick and prompt efforts to be taken to capture this high volume market. whatever the policy is going to be formulated it should not be same for all the areas. This will appeal to the target customers of middle and older age groups apart from the younger generation in which PEPSI has a good hold. preferences. Different policies should be framed and implemented at different areas by looking and keeping various variables in the mind like buying habits. It is necessary that executive should make frequent visit to cover each outlet and try to provide them best 62 .  First and foremost things are that. education level financial position of that particular area and standard if living etc.  Many retailers complained regarding irregularly in visit by the executives. The operations of the bottling plants of the surrounding territories should be controlled in order to ensure that they do not supply the product in other territories not under their area of operation. The company should modify its advertising strategy and educate the customers about its age-old existence and enhance its brand image.

 There is a great market of soda (1 Lit. foreign particles were found in few bottles.  Soft drink is still considered a treat virtually a luxury. so proper quality control measures should be implemented as company’s reputation are at stake.  Claim should be provided to the deserving retailers.  Quality of PET bottle should be improved so that most problems can be minimized. 63 . banners and sun pack sheets etc should be made at regular interval. Pouches. so it possible company should cut down its price especially of cans. glow-sign boards. tin boards. so the supply should be made possible quickly.) but the supply of this pack is very poor.  Supply of posters.

posh area.  Retailers need display material. as it is a good medium of advertisement.  A company may create favorable impression among the youth if they sponsors small events like college festivals. fashion shows.  Proper attention should be given to the retailer’s problem so that they take interest to increase the sale. university programs. bus stand. 64 . school functions. quiz programs etc. Wall painting should be made regularly in the area. To enhance the marketing of the product. major market and economies place etc.  Proper advertisement should be made at railway station.

LIMITATIONS  The retailers in many cases reluctant to answered many questions.  The respondents may be biased on influenced by some other factors.  Time and money were the greatest limitation in carrying out the survey.  The mere information which we get from the retailers is not sufficient to arrive at a conclusion. 65 .  A number of retailers (pan-shop) being illiterate. it took us lot of time in collecting information.  The seasonal changes affect the sell.

the result comes out that Mountain Dew is the leading product of Pepsi-Cola.  Consumers do have a demand for 200 ml and 2 lit. they deliver their product according to the demand a just in time. bottle. I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of PET.  Retailers have problem in display material.  After conducting the market survey of retailer in Ghaziabad city. 66 .  Kinley soda (Coca-Coal) is also dominated by Lehar soda (Pepsi-Cola) in Ghaziabad city.  Aquafina (Pepsi-Cola) in Ghaziabad city dominated Kinley (Coca-Cola) mineral water.  After analyzing the market and calculate the weightage.MAIN KEY POINTS  Service aspect of agencies is very effective.  Retailers have complaint regarding the PET.  Most of the place like cinema hall and educational institutions are dominated by Pepsi-Cola. that more better quality bottle should be used.  Retailers have a demand of some offers and free gifts.

 It was seen that Lehar Soda (1 lit. 67 .  In the market there is only a retailer on which the sale of the different product of different company depends. Maaza (Coca-Cola) is also dominated by Slice(Pepsi-Cola).) in particular remains short during the season.

at the right place. The availability of the right brand and flavor pack. at the right time is a key for winning the customer in soft drink business. Soft drink business’s behavior is not governed by brand loyalty so the emphasis is not only on creating the market but also on retaining it. so it is very necessary to Merchandise products of PEPSI efficiently and present them in such a manner so that it can motivate the consumer and generate a thirst in consumer to consummate it. PEPSI has a strong position in NOIDA & NCR with the support of its efficient distribution network.CONCLUSION The business of Soft Drink industry is significantly based upon the impulse buying. aggressive marketing efforts and advertisements along with attractive schemes but there still exists potential market in NOIDA & NCR to be exploited and a suitable Weak Area Programme or the Strong Area Programme has to be formulated to improve its market share depending upon the area under consideration. Keeping these facts in 68 . Though.

mind it becomes very important to treat the retailers with concern and satisfy them by various measures and so that they are loyal towards PEPSI. Public relation is also critically important in this industry. 69 .

ANNEXURE 70 .

: ____________________________________ Q. Are you aware of Pepsi house hold scheme ? a.5. Only Coca Cola c.2. no Q. Both. Which quantity of soft drinks you have? 71 .1.QUESTIONNAIRE Name : ____________________________________ : Address ____________________________________ ____________________________________ Contact No. Yes Q.4. no Q. How many houses? Q. b. yes b. Only Pepsi-Cola b.3. Do you provide home delivery of Pepsi ? a. Which brand of soft drink do you sell? a.

12. During breakdown of chilling equipment who gives better service? a. Whose racks do you own? a.9. Both.10. All. Both. Coca-Cola = = Yes…. Leher Soda (Pepsi-Cola) b. 2 lit. Yes b. Only Pepsi-Cola b. Yes…. Q. 200 ml d. Only Coca Cola c. 300 ml e.6. 72 . Do you get timely supply of these brands with proper schemes? a. c. Only Coca Cola c. Kinley(Coca Cola) Q. Kinley (Coca Cola) c. Q.7. No…. Pepsi-Cola b. Is your chilling equipment working properly? a. Aquafina (Pepsi-Cola) b. No…. b. Which brand of soda do you sell? a. Only Pepsi-Cola b. No.11.8. 500 ml Q. Only Coca Cola c. Only Pepsi-Cola b. Q. Q. Chilling equipment owned by you? a. Others.a. Q. Which brand of mineral water do you sell? a. Both.

5-15% Q. Cant Say Q. more than 50% 600 ML PCI STOCK CCX 2 LIT PCI CCX 73 . Has it effected your sale? a. Are your customer aware of PEPSI HOUSE HOLD SCHEME? a. No.25.13. Yes b. yes b. Availability of glow boards provided by company through promotional scheme. no c. No c. 200 ML STOCK PCI REGULAR CCX 300ML PCY CCX b. Yes b.18. a.Q. Is there increase in sales due to display of the racks? a.30% c.17.15. What %tage increase you got after this scheme? a. cant say Q.14. Q.16. Yes b. Q. No.

R.google.com www. Kothari) 74 .com (Written by Philip Kotler) (Written by C.PET BIBLIOGRAPHY Marketing Management Principles of Marketing Research Methodology Magazines:  Advertising Management  Business India  Business Today  Business World www. Gupta) (Written by C. B.com www.pepsico.pepsiworld.

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