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Lumbini Beverages Pvt. Ltd., Hajipur


Under the Guidance of :Prof. JadhavS.A. Dept. of Business Admn. IMED, BVU, PUNE

Submitted BY :Sumit Ranjan Roll No. - 109 BBA Marketing SESSION 2005 - 2008 Bharati Vidyapeeth University., Pune



Introduction about the Study

Objective of the study Importance & Relevance of the study Scope of the study PepsiCo Mission Statement Limitation of the study


History of Pepsi History of Pepsi in India History of Soft Drink in Bihar The Lumbini Beverages Pvt. Ltd.

CHAPTER 3 Organizational Chart Product Profile Manufacturing process. Marketing strategy


Theoretical Input
Promotional Activities for Retailers & Consumers Promotional activities in Lumbini Beverages Pvt. Ltd.

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Research Methodology
Introduction Data Collection Method Data source Research Instrument Sampling Plan Questionnaire


Competitor Analysis & Interpretation

Key analysis and Findings S W O T Analysis CHAPTER 7

Suggestion & Recommendations Conclusion Bibliography

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The present era is an era of Brand Marketing The business of brand marketing can be compared to the game of chess. In the area of marketing brand name, packaging, distribution and advertising plays similar role as that of pawn on the board of chess. To achieve the purpose I have done my summer project training from Lumbini Beverages Pvt . Ltd. Hajipur, Unit the topic given me is A B RIEF S TUDY ON S ALES & D ISTRIBUTION SYSTEM AND M ARKET S HARE OF P EPSI C OCA -C OLA IN P ATNA . Knowledge attains maturity and perfection through application in practical field. Application of Management Principles in all branches whether product, personnel, finance, marketing etc. results is more efficient and effective utilization of available resources. This report has been compiled firstly in partial fulfillment of the requirement for BBA, secondary to share the practical knowledge and experience gained as result of continued association with companys marketing branch. The details mentioned in this report are based on real situations. Since the reader would like to know the general detail of two cola giants, therefore a chapter includes a discussion on theoretical aspects of comparative study and its application for the industry in marketing is also include. Further to help the reader in understanding the findings, graphical representation, conclusions and suggestions are also includes, which very much helps Lumbini Beverages Pvt. Ltd., Hajipur to know where he stands in the soft drinks market. What is the market share of Pepsi and what Pepsi is doing against Coca-Cola? I frequently hope that this project report would be considerable help to the management for developing strategies in those areas.

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This project report is a sincere attempt to carefully and systematically gather facts about and evaluate the Sales & Distribution Activity Market Share of Pepsi and Coca-cola of M/s Lumbini Beverages Pvt. Ltd., Hajipur as a part of the course curriculum of BBA Degree, From INSTITUTE OF MANAGEMENT & ENTREPRENEURSHIP DEVELOPMENT ,




PUNE, which is based on three weeks duration. For the completion of my project
report many person directly or indirectly assisted me. At first, I would like to express my sincere thanks and deep gratitude to my esteemed guide Prof. Jadhav S.A. , ( INSTITUTE OF MANAGEMENT &

ENTREPRENEURSHIP DEVELOPMENT, Bharati Vidyapeeth University, PUNE, for his kind initiative, guidance and valuable suggestion without which the completion of this would not have been possible. I also express my per found sense of gratitude to Mr. Arun Kumar Singh, TDM Patna of M/s Lumbini Beverages Pvt. Ltd., Hajipur , who provide me an opportunity to work and also guide me at every to work and also guide me at every step of my project. His proper direction and constant inspiration provide to be an asset for this project. I am also grateful to Miss Rakhi Madam HRD Executive , (Pepsi) Lumbini Beverages Pvt. Ltd., Hajipur. For giving me opportunity to learn and conduct research in there esteemed organization. Words are too little to express my gratitude to them.

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I would like to thank CE Mr. Rajnikant Shahi, Distributor Stuti Enterprises, Kankarbagh Area, Patna. for this kind Co-operation to compile my project. Since the reader would like to know the general details of 2-cola giants, therefore, chapter includes a discussion of theoretical aspects and its application is included. Further to help the reader to understand the finding with graphical representation, conclusions and suggestions are also included, which very much helps to know that where Lumbini Beverages Pvt. Ltd., stands in the soft-drink market. What is the market share of Pepsi and how Pepsi is doing against Coca - Cola. I hope this report will be special interest to the marketing students, who are on look for such real life situations beyond their classroom studies .

Sumit Ranjan

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Objectiveof ofthe thestudy study Objective Importance& &Relevance Relevanceof ofthe theStudy. Study. Importance Scopeof ofthe thestudy study Scope PepsiCoMission MissionStudy Study PepsiCo Limitationof ofthe thestudy study Limitation

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India with a population of more the 100 crores is potentially one of the largest consumer market in the world. With urbanization and development of economy, tastes and interests of the people changes according to the advance nation. Marketing is about winning this new environment. It is about understanding what consumers wants a supplying its more efficiently and more conveniently . The consumer market may be identified as the market for product and services that are purchased by individuals as household for their personal consumption. Soft drinks is a typical consumer product purchased by individual primarily quench their thirst and also for refreshment. Different types of soft drinks are available in the market and more or less content of all soft drinks is same. The market of soft drink is facing a cutthroat competition and many companies are floating in the market with their products with different brand names. In such a situation different factors which influence the people choice for soft drinks are taste, quality, images, easy availability and the product cost of advertisement. The Govt. of India has considered the soft drinks industry as ``Non essential As a result the excise duty levied by govt. on better soft drinks is very high. Thus in a country like India where more than 50% of the total population exists below poverty line, the consumer cannot afford such high price for soft drinks. As a result the trading activities of the soft drinks industry are concentrated in and around big cities and town where the purchasing power of population is considered comparatively high.
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Soft drinks Industries in India has an annual sale of about 4000crores, with per capita consumption of soft drinks at a low of seven bottle per annum (even Pakistan has a per capita consumption of 14; in China and U.S.A. is more than 800 bottles) is due to price factor. So, marketing is both philosophy and technology. It is technology because it suggests ways and means for effective production and distribution of goods and services in the market to give maximum satisfaction to the consumer. The marketing manager is responsible for both determining and suitability of goods and services in the market to give maximum satisfaction to the consumer. The marketing manager is responsible for both determining and suitability of goods and services presented by the company to the market, and also determining about potential market and make better relation with retailer. In this regard the marketing management with have to apply to marketing technology in the conceptual philosophy of a system. It is the process of system analysis in the marketing management for effective research and can be defined, Systematic objective and exhaustive study of tasks relevant to any problem in the field of marketing.

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A project cum Training is an essential part of BBA Degree. This study was conducted on a study of retail outlets and their Sales & Distribution System for Pepsi in Lumbini Beverages Pvt. Ltd. at Patna .

On the following objectives survey was undertaken are: 1. 2. 3. 4. 5. 6. 7. To determine the factors which persuade the retailer for sale of Pepsi? To find out the companys position in the soft drink market. To find out the exclusive outlets of Pepsi and its competitors. To find out the promotional activities in Pepsi. To find out the market share of Pepsi against its competitor. To identity the organizational features of Pepsi. To find out the promotional activities of competitors.

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The three weeks Summer Training is very important for a student of BBA This type of study gives some practical knowledge to BBA students and practical knowledge is more useful than theoretical knowledge for any one. There is no certain formula for any particular problem but the aim of this study is to develop the ability of decision making. Right decision at right time itself helps an organization to run smoothly.

The training in any organization gives us an idea of different marketing activities and main emphasis is given on Promotional

activities aspect and also it is seen how business is taken tactfully when any problem comes to an executive, the way of problem solving, right decision making and knowledge of different types of marketing activities gives much importance to this study. Though only in 21 days it was not possible to understand it so deeply but an over all ideas would be developed.

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The market survey was conducted on a study of retails outlets and their Sales & Distribution System for Pepsi in Lumbini Beverages Pvt Ltd at Patna. This study was done in Lumbini Beverages Pvt. Ltd. Hajipur. The geographical slope of my survey was limited to Patna only. Study aims at relationship between Company Executives and retailer and why any retailer sold particular brand only. The survey covers a wide range of activities and factors, which influence the retailer to sell the Pepsi Product . The samples of 105 respondents were taken to represent total retailers of Patna Zone. The validity of the findings of this survey is limited to the period during which the field survey was conducted i.e., three weeks during 22 nd June to 13 th July 2007.

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PepsiCos overall mission is to increase the value of our shareholder Investment. We do this through sales growth, cost controls and wise Investment of resources. We believe our commercial success depend upon offering quality and value to wholesome, economical, efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.



Our vision is to be a truly global company by continuing to built a competitive and profitable worldwide refreshment beverages business.

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Although all efforts have been made to study all start of population as compared to the topic of study, universe size & sample size findings of study will be considered only on the Urban Area and will be applied in Patna only because of Retailers perception and expectation varies in other place due to socio-economic and educational background. At last but not the least the study will try to find out the real depth of the actual position as far as possible.

The survey suffers from following limitation :1. Since the product under study was a consumer goods which requires a large sample to have a correct study, a sample size of 105 Respondents was too small for it. But time & money did not allow Researcher to have a large sample. And also to manage a large sample would also be difficult by Researcher alone.

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2. Duration of study also limited for further intensive study. 3. Mostly stress was given on primary data, as it was difficult to collect Secondary data from organization & distributors. 4. The sample selected is not purely random sample but it is convenient so that the result of the survey dont have any high degree if statistical significance.
5. The result of survey are based upon crucial assumption like-

(a) The respondents know right answer to the question put to them. (b) They are wiling to give the right answer. (c) Strictly based on the responses of the Retailers. (d) Difficult to ascertain the authenticity of their statement. 6. It is very difficult to influence and get right answer from old mentality Retailers. 7. Region i.e., Urban area therefore the result are applicable to Patna region only These findings may not have much relevance in other regions of different from rest of the country. 8. All the conclusions, suggestions & recommendations will be made in the feed back obtained from survey on the basis of responses given by the respondents.

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History Historyof ofPepsi Pepsi History Historyof ofPepsi Pepsiin inIndia India History Historyof ofSoft SoftDrink Drinkin inBihar Bihar The TheLumbini LumbiniBeverages BeveragesPvt. Pvt.Ltd Ltd

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1893--Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain. 1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo. 1902--The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first PepsiCola Company. The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly Journal . 1903--"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he sells 7,968 gallons of syrup in the first year of operation. Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion." 1904--Bradham purchases a building in New Bern known as the "Bishop Factory" for $5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Sales increase to 19,848 gallons. 1905--Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina. Pepsi receives its new logo, its first change since 1898. 1906--Pepsi gets another logo change, the third in eight years. The modified script logo is created with the slogan, "The Original Pure Food Drink." There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada. Syrup sales rise to 38,605 gallons. The federal government passes the Pure Food and Drug Act, banning substances such as arsenic, lead, barium, and uranium, from food and beverages. This forced many soft

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drink manufacturers, including Coca-Cola, to change their formulas. Pepsi-Cola, being free of any such impurities, claimed they already met federal requirements. 1907--Pepsi-Cola Company continues to expand; the company's bottling network grows to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup. Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons. 1908--Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and sell Pepsi-Cola. 1909--Automobile race pioneer Barney Old field endorses Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." 1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina. 1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you." 1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern, Craven Holding Corporation, for $30,000. Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation. 1928--After five continuous losing years, Megargel reorganizes his company as the National Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi trademark. 1931--U.S. District Court for Eastern District Virginia declares the National PepsiCola Company bankrupt, the second bankruptcy in Pepsi-Cola history. The Loft candy company acquires the National Pepsi-Cola Company. Charles G. Goth, president of Loft, assumes leadership of Pepsi and commands the reformulation of Pepsi-Cola syrup formula. 1933--By the end of the year, Goths new Pepsi-Cola Company is insolvent. In a series of moves, he acquires Mega gels interest in the company, giving himself 91% ownership of Pepsi.

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1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the company begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost savings proves irresistible to Depression-worn Americans and sales skyrocket nationally. Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867-February 19th, 1934). 1935--Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets up national territorial boundaries for the Pepsi bottler franchise system. 1936--Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000. 1938--Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the Pepsi-Cola Company. Mack, who considers advertising the keystone of the soft drink business, turns Pepsi into a modern marketing company. 1939--The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel" theme in newspapers. Pepsi-Cola Company names Mack as CEO. The Board of Directors removes Guth from the Pepsi payroll after he plans to personally acquire a competing cola. 1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertising jingle ever broadcast nationwide on radio. 1941--The New York Stock Exchange trades Pepsi's stock for the first-time. In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue. 1943--Pepsi's theme line becomes "Bigger Drink, Better Taste." 1948 - - Corporate headquarters moves from Long Island City, New York, to midtown Manhattan. 1950--Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife, Hollywood movie star Joan Crawford, is instrumental in promoting the company's product line. Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth in Pepsi history.
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1953--"The Light Refreshment" campaign capitalizes on a change in the product's formula that reduces caloric content. 1955--Herbert Barnet is named President of Pepsi-Cola. 1959--Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice President Nixon share a Pepsi. 1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's Pepsi, for those who think young." 1962--Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts, accompanying the brand's groundbreaking "Pepsi Generation" ad campaign. 1963--After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is named CEO of Pepsi-Cola Company. Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12-ounce bottle gives way to the 16-ounce size. Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks all over the world. 1964--Diet Pepsi, America's first national diet soft drink, debuts.

Pepsi-Cola acquires Mountain Dew from the Tip Corporation. 1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas Texas and Pepsi-Cola merge, forming PepsiCo, Inc. Military 12-ounce cans are such a success that full-scale commercial distribution begins. Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards." 1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi is also the first company to respond to consumer preference with light -weigh, recyclable,

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Plastic bottles. Vic Bonomo is named President of The Pepsi World Headquarters moves from Manhattan to Purchase, NY.


1974--First Pepsi plant opens in the U.S.S.R. Television ads introduce the new theme line, "Hello, Sunshine, Hello Mountain Dew." 1976--Pepsi becomes the single largest soft drink brand sold in American supermarkets. The campaign is "Have a Pepsi Day!" and a classic commercial, "Puppies," becomes one of America's best-loved ads. As people get back to basics, Pepsi is there as one of the simple things in life. 1977--At 37, marketing genius John Scullery is named President of-Pepsi-Cola. 1978--The company experiments with new flavors. Twelve-pack cans are introduced. 1980--Pepsi becomes number one in sales in the take home market. 1981--PepsiCo and China reach agreement to manufacture soft drinks, with production beginning next year. 1982--Pepsi Free, a caffeine-free cola, is introduced nationwide. Pepsi Challenge activity has penetrated 75% of the U.S. market. 1983--Mountain Dew launches the "Dew it to it" theme.

1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation." Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced, creating a new soft drink category, "juice added." In subsequent line of extensions, Mandarin

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Orange Slice goes on to become the number one orange soft drink in the U.S. Diet Pepsi is reformulated with NutraSweet (aspartame) brand sweetener.

1985--After responding to years of decline, Coke loses to Pepsi in preference tests by reformulating. However, the new formula is met with widespread consumer rejection, forcing the re-introduction of the original formulation as "Coca-Cola Classic." The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the space shuttle. By the end of 1985, the New Generation campaign earns more than 58 major advertising and film-related awards. Pepsi's campaign featuring Lionel Ritchie is the most remembered in the country, according to consumer preference polls. 1986--Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway. 7UP international is acquired in Canada. Pepsi-Cola acquires Mug Root Beer. 1987-- Pepsi-Cola President Roger Enrico is named President / CEO of Pepsi Co Worldwide Beverages. Pepsi-Cola World Headquarters moves from Purchase to Somers, New York. After a 27-year absence, Pepsi returns to Broadway with the lighting of spectacular new neon sign in Times Square. 1988--Craig Weather up is appointed President/CEO of Pepsi-Cola Company. 1989--Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead." Chris Sinclair is named President of Pepsi-Cola International. Pepsi-Cola introduces an exciting new flavor, Wild Cherry Pepsi. 1990--American Music Award and Grammy winner rap artist Young MC writes and performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by endorsing Diet Pepsi. The slogan is "You Got The Right One Baby." 1991--Craig E. Weather up is named CEO of Pepsi-Cola North America, as Canada becomes part of the company's North American operations.
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Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or PET) into the marketplace. The development marks the first time recycled plastic is used in direct contact with food in packaging. 1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice of a New Generation." Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will distribute single serve Lipton Original and Lipton Brisk products. Crystal Pepsi: a refreshing, clear soda that is caffeine free, has 100% natural flavors, no preservatives and is low in sodium, goes national. Mountain Dew introduces the popular theme line, "Get Vertical." 1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi." PepsiCola profits surpass $1 billion. Pepsi introduces an innovative 24-can multi pack that satisfies growing consumer demand for convenient large-size soft drink packaging. "The Cube" is easier to carry than the traditional 24-pack and it fits in the refrigerator. 1994--New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weather up explaining the relationship between freshness and superior taste to consumers. Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo Foods and Beverages Company. 1995--In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship. 1996--In February of this year, Pepsi makes history once again, by launching one of the most ambitious entertainment sites on the World Wide Web. Pepsi World eventually surpasses all expectations, and becomes one of the most landed, and copied, sites in this new media, firmly establishing Pepsi's presence on the Internet. 1997--In the early part of the year, Pepsi pushes into a new era with the unveiling of the Generation Next campaign. Generation Next is about everything that is young and fresh; a celebration of the creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at every step of the way.

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PepsiCo. Announces that, effective October 6th, it will spin off its restaurant division to form Tricon Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largest restaurant company in the world in units and second-largest in sales. 1998--Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A. Enrico donate his salary to provide scholarships for children of PepsiCo employees. Pepsi introduces Pepsi One - the first one calorie drink without that diet taste! 2000--Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills and hard work elsewhere (for more money of course!), therefore putting an end to his Pepsi page! For more information about Pepsi, choose a search engine and search for 'Pepsi' or visit or www.Pepsi Please do not ask me how much Pepsi merchandise (such as bottles) is worth - I do not know. I'm not a collector. As an MNC, On the globe, Pepsi Foods Ltd is one of the largest soft drink companies in the world with its head quarters in New York. Pepsi entered the Indian soft drink marker in 1988 and began its production in May 1990 and soon it was giving the local contenders the run for their money in the soft drink market. It comes out with dazzling marketing innovation that rocket the cola market line selling the product through function, Pepsi outlets. Pepsis success in creating a brand almost from scratch in India is the stuff that marketing case studies are made of. Given the problems of doing business in markets like ours, Pepsi entered the market as an under-dog. Its first even advantage- it entered before Coke returned-was considerable reduced by the enormous export obligations stepped on the company. Yet right from the beginning, Pepsi demonstrated a far more focused approached .So while it entered the market like any other MNC, it was quick to adapt, It realized that consumers, particularly the youth, to whom it consciously reached out, would identify better with a brand that they se as global, yet Indian, Pepsi was built as a desi brand. Hence its deliberate attempt to build ad campaigns using the popular Hinglish In the process, slogans like, Y EHI HAI RIGHT CHOICE BABY and Y EH DIL MAANGE MORE AHA became part of Indias popular consciousness. When Pepsi lost the bidding battle to sponsor a Cricket tournament to coke, the loss was turned into triumph with the catch line, Nothing official about it. It cashed in on the untapped consumer aspiration in smaller towns, the hinterlands of
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metropolitan cities and now a days the slogan which is on air is Y EH PYAAS HAI BADI

It showed a rare ability not only to survive, but also grow through Indias tortuous policy twists and turns, which threw many other MNCs off balance. Its top management team did not suffer from the frequent changes seen at rival, Coke Consequently, it was able to Unlike coke, which paid enormous prices to buy out established local brands, Pepsi brought its own stuff over, and pushed those aggressively with dealers, retailers and consumers. Right now, it can bark its outstanding success in building a brand that has become synonymous with soft drinks across the length and breadth of the country.

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The soft drink market in India is quite wide. The production of soft drinks was started on 27 t h March 1967 with the installation of Coca-Cola bottling plant at Jamshedpur under the suspicious guidance of late industrialist Mr. Dharam Chand Kamani, Named as Steel City Beverage Ltd. In 1977 with the advent of Janta party Govt. it created trouble for Coca cola which led to the withdrawal of its operation from India. After the withdrawal of Coca-cola from India, the Parle monopolized the soft drink market in Bihar and took a lions share of the projects from the industry that even after McDowells pure drinks and local drinks entered into the market, they would not compete with Parle, Once again with the liberalization of economy in 1991 Pepsi Food Ltd. Entered in the Indian market. It started bottling its product in Bihar by Steel city Beveragess Company (now in Jarkhand state) on 24 t h march 1991 owned by Kamanis in collaboration with the Birla group which was once the bottling plant for Coca-Cola. Through Parle range of products still captures a large share of Bihars soft drinks market yet Pepsi range of products is giving it a tough competition in all flavors i.e. Cola, Orange and Lemon. In 1995 another bottling plant was installed at Hajipur Industrial Area Pepsi Food Ltd., named Lumbini Beverages Pvt. Ltd. To meet the requirement of PEPSI range of products not fulfilled by steel City Beverages Ltd. And due to increase demand of these brands. At present in Bihar there are two bottling plants, the Orient Beverages Ltd. For parle, now Hindustan CocaCola Beverage Pvt. Ltd. For Coca-Cola is in Patna and Lumbini Beverage Pvt. Ltd. For Pepsi range of products, is located at Hajipur Industrial Area .

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A BRIEF HISTORY OF Lumbini Beverages Pvt. Ltd., Hajipur. Lumbini Beverage Pvt. Ltd. Is situated at Industrial Area, Hajipur in Vaishali district of Bihar. Mr. Charan Khilani, who is a resident of Kolkata, established it in the year 1997. It is one of the Pepsi Foods bottling Plants in Bihar. Ananda Marketing Pvt. Ltd., was a marketing divisions of Lumbini Beverage Pvt. Ltd. But, now L.B.P.L. does its marketing itself. PROFILE OF LUMBINI BEVERAGE PVT. LTD. Company Land Area Location and Authority Name of Director/Occupier Name of CEO Industrial License No. : : : : : 9.30 Acres EPIP, Industrial Area, Hajipur- 844101 Charan Khilani Mr. G. P. Singh Regn. No. H 12475(C) Factory License No. 66750/VLI Date 16.08.97 F.P.O. Licence No.- 10607/97 Capacity Nature of product No of employees Control Board : : : : 1500 bottles per minute Soft drink, Pepsi, Mirinda, Soda, Slice, Aquafina 150+150(max.) Seasonal labors on any day in the Season NO. 1877. Date 07.04.97

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With the urbanization of economy in 1991, about thirteen year after the exit of coca-cola from Indian seen, an MNC (Multi National Company ) globally Known as PCI (Pepsi Cola International) entered the Indian market with its name, PFL (Pepsi Foods Ltd.) it started bottling its products in Bihar by Steel City Beverages, Jamshedpur on 24 t h March 1991. Late D. N. Kamani installed this very bottling unit in 1969. The company entered the soft drink with the introduction of Coca Cola and used to eater for the markets of Bihar, parts of Bengal, Orissa and Nepal, The Company was the pioneer of soft drink in Bihar. M/s Lumbini Beverages Pvt. Ltd. was established in the year of 1995. A gentleman of Kolkata, Khilani brothers were responsible to set up this bottling plant of Hajipur Industrial Area, Vaishali having this motto to cope up whole North Bihars market and to satisfy the prospective consumers immediately. The function of organization just started in 1996 but the production went to produce in March 1998.

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It is one of those bottling units of PFL which comes under FOBO (Franchise Owned Bottling Operation). This plant was installed with an initial investment of Rs.25 Corer. It started producing with its full capacity i.e. 600 bottles per minute and it will be the first plant in Bihar producing with such capacity. It is operating with the help of distributors all over Bihar exclusively stocking Pepsi range of products. It sells its product through different distributor of PEPSI in Patna. Though this plant has just completed one year of establishment, yet in the very first season it has given its competitor a very tough fights.

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Organizational OrganizationalSetup Setup Product ProductRange Range Manufacturing Manufacturingprocess processof ofLumbini LumbiniBeverages BeveragesPvt. Pvt. Ltd. Ltd. Marketing Marketingstrategy strategy

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Unit manager Finance Unit manager HRD Unit manager F.O. B.O. Unit Manager marketing Unit manager Logistic

Managing Director C.E.O. Finance M.O.M M.E.M. H.O.S. H.R.D. P.A.M. Plant

Manager T.D.M. A.S.M. C.E. Management Trainee


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The following persons constitute the present Board of Directors of the concern: BOARD OF DIRECTOR Managing Director Marketing




Market Research



Newspaper & Magazines

Radio & Television

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The product range produced by Lumbini Beverages Ltd. Is as under :Pepsi makes five different brands in 5 flavors. They are Pepsi7-upTeemMirindaSliceThe Cola & Gold The Clear Lime The cloudy Lemon The Orange, Limon, and Sorbet The Mango

Apart from the soft drinks the company also offers Soda Water named LEHAR PEPSI and mineral water AQUA FINA. Now during the world cup Cricket Pepsi Company had launched a new product called PEPSI BLUE and UNTAIN DEW to boost the cricket fans. The product by Lumbini Beverages Ltd. Is as under : PEPSI PEPSI AHA MIRINDA (Lemon) MIRINDA (Orange) MOUNTAIN DUE 7UP 7UP ICE SLICE(Mango) EVEREST (Soda) A QUAFINA ( M INERAL W ATER )

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PRODUCT PROFILE No. of product (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv) (xvi) (xvii) (xviii) Pepsi Pepsi Pepsi Cola Pepsi Cola Pepsi Cola Pepsi-Aha Mirinda Orange Mirinda Orange Mirinda Orange Mirinda Orange Mirinda Orange Mirinda Lemon Mirinda Lemon Mirinda Lemon Mirinda Lemon Mirinda Lemon 7up Lime 7up Lime 600ml. 200 ml. 300 ml. 600 ml. 15000 ml. 2000 ml. 200 300 ml. 600 ml. 1500 ml. 2000 ml. 200 ml. 300 ml. Quantity 200 ml. 300 ml. Colour Burnt-Sugar Burnt-Sugar 600 ml. 1500 ml. 2000 ml. Flavor Cola Cola Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-Sugar Sunset Sunset Sunset Sunset Sunset Tetrazin Tetrazin Tetrazin Tetrazin Tetrazin None Colour None Colour Cola Cola Cola Cola Cola Cola/Lemon Orange Orange Orange Orange Orange Lemon Lemon Lemon Lemon Lemon Lime Lime

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(xix) (xx) (xxi) (xxii) (xxiii) (xxiv) (xxv) (xxvi) (xxvii)

7up Lime 7up Lime 7up Lime Everest soda Lemon Everest soda Lemon Mountain dew Lemon Mountain dew Lemon Mountain dew Lemon Slice Mango

600 ml. 1500 ml. 2000 ml. 300 ml. 500 ml. 300 ml. 600 ml. 2000 ml. 250ml.

None Colour None Colour None Colour None Colour None Colour None Colour None Colour None Colour Color Mango

Lime Lime Lime Soda Soda Lime Lime Lime

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Scheme : Pepsi, under Lumbini Beverages has offered a lot of scheme for Sales Promotion. Sales Promotion schemes: Free scratch card on two cases of 200ml. Free scratch card on one case of 2Ltr. Free2 Bottles of 200ml. On purchase of each case of 200ml. Free-2Ltr. Pet bottle on purchase on purchase of one case of 2Ltr.




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PRICE :Price/Carat Pepsi 7up Mirinda(O) Mirinda(L) Slice Mountain Dew Aquafina M.W. 200ml Rs.150 Rs.150 Rs.150 Rs.150 -------Rs.150 ----250ml ------------Rs. 196 -------300ml Rs. 214 Rs. 214 Rs. 214 Rs. 214 --Rs. 214 600ml Rs.454 Rs.454 Rs.454 Rs.454 --Rs.454 1.5ltr. ---------------------2.0 ltr. Rs.409 Rs.409 Rs.409 Rs.409 --Rs.409 1Ltr.


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MANUFACTURING PROCESS OF LUMBINI BEVERAGES PVT LTD. Lumbini Beverages Pvt. Ltd. A private owned company at Hajipur Industrial Area (Bihar), is a franchise of PEPSI Food India Ltd. The factory bottling unit is capable of producing 849 bottles per minute. The products are all PEPSI soft drinks, like Pepsi, 7up, Mirinda (Orange and Lemon), Slice, Mountain Dew and Soda (Everest and Team). The Factory came into operation in 14 t h April 1998. 1. W ATER :


Water treatment is very important in soft drinks plant as the nature and quality of water varies from place to place. To set uniform and standard water the process of treatment is carried on. The water taken out from boring well by the help of motor pump and chlorinated by chlorinates and then by the help of pipelines comes to treatment tank called Coagulation Tank where to this water solution of different strength of added through dosing pump to reduce alkalinity, hardness, kill the bacterias. The chemicals are mixed by settle down as sludge and clear water passes to Retention Tank. From This tank the water passes through sand filter containing fine sand and pebbles and carbon filter containing granular carbon and finally through water polisher, micron filter, UV Lamp to ensure clear and Sanitary Water for use.

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Further water used in bottle washer and boiler needs softening. For this purpose, the water from storage Tank, after passing through two filter belts containing fine sand and granular carbon respectively comes to pass through a belt of Resin and bottle washer to reduce scale formation inside the machines. 2. S YRUP M AKING : For syrup making of particular brand, calculated quantity of sugar, water activated carbon and high-flown super cell known as filter Aid are taken into a sugar space to enter steam and also filtered by a motor with agitator, Sugar syrup called Raw-Syrup is prepared by dissolving the sugar with continuous stirring and heating by steam supplied by oil fired boiler. This hot syrup by the help of a pump is filtered through a filter press attached with a serious of quality filter paper to separate out carbon particles. Clear hot syrup by the help of SS pipelines passes through water P.H.E. circulated by glycol for further cooling. The chilled syrup comes to a Mixing tank, which is quantity of Bricks Hydrometer, concentrate is added and to the mixed thoroughly by a mechanical stirrer filter to the rank. This mainly, the liquid part are kept in a cold store, the temperature if finished syrup room is also maintained Air-conditioner. All the containers used for syrup making are cleaned and sanitized by Soda-bi-Carbonate, strong chlorine solution and not caustic soda solution.

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3. BOTTLE WASHING : Bottle Washing is an important part in soft drink plan. The empty durable and returnable bottles used are returned from market in plastic carats are fed to a bottle washing machine (washer). The machine has double end system with circular chain to carry the bottles Caustic Soda, Tri sodium Phosphate, Sodium-Gluconate are added to the caustic Tank filled in with water heated by steam supplied by the boiler. The empty bottles enter to the Hot Caustic Tank in one end and after being cleaned by caustic solution and finally washed with water through spray jets filter are discharged in other end. The washed bottles after proper inspection are SU 319 & SU 853 are sued for conveyor cleaning and smooth running of chain carrying bottles. SU 260 & SU 773 is used for bottle cleaning shining and mold removing. 4. FILLING : Finished syrup and treated water lime are connected to a dosing pump which mixes syrup and water with ratio of 1:5 and the syrup mixed with water enter to Carbonate tank to mix with Carbon-Dioxide gas. Which are preserved in cylinders for use. The cylinders are connected through CO manifold to tank to use requisite quantity of gas. To control CO pressure and temperature of liquid, we used recording control (Yaylor). The syrup passed through a PHE, which is called itself by circulation of chilled glycol supplied chilling compressor.

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To run the machine for chilling F-22 gas used. The syrup being chilled easily mixes with CO gas and enters to filter for bottling. The lift cylinder functioned by pressure of air supplied by an air compressor. The syrup known as Beverages in this stage is filled in the cleaned bottles, which are durable in nature and returnable by, buyer by filling machine (Filter ) by a counter pressure of carbon-dioxide gas. After beverages is filled in bottles if goes to the crowner where with the help of a crown corks the bottles are sealed (crowned) to project the carbonation, flavor, outside contamination and spoilage. The finished products are coded by a coding machine and inspected properly by inspection light while passing through the conveyor fitted with SS chains. The empty plastic carats passing through a conveyor enters to carat washer machine and it is washed and mover through the conveyor where finished products are accumulated. 5. TESTING OF PRODUCT : Finally the finished syrup during bottling is tested in laboratory to meet the parameters and also to get standard and quality products. To maintain the standard and uniformity in products the sugar contents and carbonation in the filled bottle are checked in regular intervals by certified by bricks hydrometers, refractor meters & pressure gas. The dead weight tester is needed calculate pressure gas to know meter. Electronic Digital Balance is used to weight chemical to conduct test in lab. A CO purity tester checks the purity of CO.

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The microbiology test of the products and water used in syrup making and production are also done to ensure that the product is free from any bacteriological contamination. To conduct the micro test, hot sterilizer, incubator, autoclave, pads filter membranes media are produced and used. The diesel generator is operated in case of electricity failure for smooth operation of plant. To drawn electricity for the State Electricity Board the transformer used. Furnace Oil/Diesel Oil is used in boiler for generation steam.

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RAW MATERIAL INPUTS : A soft drink bottling plant requires the following raw materials :-

CONTAINS OF PEPSI :Carbonated Water High fructose corn syrup and/or sugar, Caramel color, Phosphoric acid, Caffeine, Citric acid and Natural flavors

Calories Total Fat Sodium Potassium Total carbohydrates Sugars Protein Caffeine

100 0 g 5mg 0mg 27mg 27g 0g 25g

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Production Process:For any production to start it requires definite raw materials. A soft drink bottling plant requires the following raw materials: 1. 2. 3. 4. 5. Sugar Carbondioxide gas Water Essence and Crown cork.

1. SUGAR : High purity crystal sugar is required to produce the sugar is required to produce the sugar syrup for soft drink. The main supplier of sugar for Lumbini Beverages Pvt. Ltd. Is M/s KCP Ltd., Chennai, The usual requirement of sugar is around 800 gm per carat for all flavors. 2. FLAVOUR : M/S Pepsi Food Ltd. Is supplying all essence of flavor for Lumbini Beverages Pvt. Ltd. From their plant Chennai, Bhaw Nagar (Panjab). 3. WATER : The required water of Lumbini Beverages Pvt. Ltd. Is being met from the high yielding deep boring well with pumps. Adding softening plant & DM plant so as to meet the required quality of water then treats the raw water taken out from these well. Water quality is being strictly adhered through regular sampling & analysis.

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4. CO2 GAS : CO2 Gas of the required purity is being carried on from Hindustan Gas & India Ltd. And also from IOC Patna and Barauni, as per requirement of flavour. The usual consumption of CO2 is 1kg per 10 carats in case of Pepsi, 1 kg per 5 carats in case of Soda Water and the rest flavour 1 kg per 114 carats. 5. CROWN CORK : Lumbini Beverages Pvt. Ltd. Takes crown cork from Manksic Crown Ltd., Bhopal, Manksia Closures Ltd., Gaziabad respectively. 6. GLASS BOTTLE : Lumbini Beverages Pvt. Ltd. Takes flint & green glass bottle from Hindustan National Glass Ltd., Tapovan (Hrishikesh). 7. PLASTIC CARATES : Lumbini Beverages Pvt. Ltd. Takes plastic carates from Neelkamal Plastic Ltd., Nasik, Supreme Industries Ltd., Nasik.

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M ARKETING S TRATEGY Marketing Strategy is the complete and unbeatable plan designed

specifically for attaining the marketing objective of the firm. The market objective indicates what the firm indicates, what the firm wants to achieves, the marketing strategy provides for achieving them. The Marketing strategy is not able idea. It is a well outlined plan, and there are different ways to formulating it. Basically formulating of marketing strategy consists of two main steps. Selecting a Target Market. Assembling the Marketing mix, Actually, the target marketing and marketing mix together constitute the marketing strategy of the firm. When the Pepsi Food Company entered in the Indian soft drink market, the market was already prevailed by coke and previously it was Parle, Pepsi tried to established in India with a unique marketing policy, Pepsi took into consideration of youth segment target market. Though the advertisement of Pepsi highlighted the style of living of young generation with different walk of life. Pepsi brought in its advertisement different stalwarts personalities from fields like young cine stars, sport stars and famous personalities from different fields. It has attracted the young generation and of course increase the sale of Pepsi, Pepsi also organized the national and international sports programmed to attract the young generation.

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ASSEMBLING THE MARKET MIX : The set of controllable tactical tools:A product, place service and promotion (4ps) that the firm blend to produce the response it wants in the target market. These are the following 4Ps. 1. Products: That could meet the identified needs of chosen consuming

groups. 2. Place: It performs various functions like transportation, warehousing,

channel management etc. so the product could convertingly reach the consumer. 3. Promotion: The firm carries out a no, of measures like personal advertising and sales promotion programmed with view to


communicate the consumer and promoter of the product. 4. Service It referee to the various services to be provided to the

customer before and after sale period. It is the mechanism to achieve the consumptions of marketing process, striking the level of price that is accepted to the firm as well as consumer. 4Ps policies of the Pepsi products:

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1. Product: there are five lines of products of soft drink in Indian that is almost matched with international quality product line. Pepsi - 200ml, 300ml, 600ml, and 2000ml, Miranda - 200ml, 300ml, 600ml, and 2000ml, 7up - 200ml, 300ml, 600ml, and 2000ml, 7up ice - 200ml, 600ml, Mountain Dew - 200ml, 600ml, and 2000ml Slice 250 ml. 500ml. & 1.0 ltr. 2. Place: Pepsi has a strong channel of distribution, and view intermediaries command the distribution work

Bottler Distributor Retailer Consumer By this simple distribution, Pepsi is doing well. The company is trying to reach at every route urban and village areas. The company has succeeded to some extent in reaching its target. 3. Promotion :In the specific sense sales promotion methods are those sales activities that supplement both personal selling and advertising and coordination them and help to make them effective such as display, shows and exposition and demonstrations and other recurrent selling efforts not in ordinary route.
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Pepsi has taken verity of tools had techniques of sales promotion. Like for example sales promotion letters, catalogs, point of purchase (POP), display, customer service programmed and demonstration free sample.

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Promotional PromotionalActivities Activitiesfor forRetailers Retailers Promotional PromotionalActivities Activitiesin inLumbini LumbiniBeverages BeveragesPvt. Pvt.Ltd Ltd

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THREORITICAL INPUT Promotional Activities (for Retailers)

Promotional activities consist of various means of communicating persuasively with the target audience. The important methods are: (a) (b) Advertisement: - where an identified sponsors pays media (such as TV) to transmit to target consumer. Personal selling: - Where sales representative employed by the firm engage in interpersonal communication with individual consumers and prospective customers. (C) Sales promotion: - Where the Market utilize demonstrations, premiums, contests or similar devices. displays,

(c) (d)

Publicity and Public relation: - help to stimulate supportive news items about the firm and its product that have greater credibility with public than advertisement. Of all the methods of promotional activities that constitute the promotion mix, sales promotion is the only one method that makes use of incentives to complete the Push pull promotional strategy of motivating the sales force, the distributor and the consumer transacting a sale. According to American Marketing Association sales promotion refers Those activities other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness, such as display, Shows and Exhibition, demonstration and various other nonrecurrent selling efforts not in ordinary. Sales promotion is also known by the name of Extra Purchasing Value (E.P.V.).

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1 Sales Promotion Price off offers Meaning Offering product at lower than To the normal price. 2 Quantity off offer Objectives encourage immediate non users,

sales, attract

induce new product trial. Offering more quantity of the To encourage more longer same product at no extra cost or duration price the larger quantity packs. consumption, a very nominal increase in the highest or excess quantity movement from the factory, trade up consumer for higher quantity pack size. of To encourage purchase, sales promotion, induce trial of new product, ensure reach of premium to the

3. Premium





merchandise as an incentive in stimulate loyalty, off season order to sell product or service.

4. Coupans

consumer. When the consumer is entitled to To encourage product trial, redeem specific standard build loyalty, rate, trade up certificate for a product free or regular users stimulate rein part payment. Coupons are purchase used by both the manufacturers enquiries. and the dealers for sales promotion. Coupons may be distributed by e-mail, by media advertisements, door-to-door. Inside product package or by dealers on purchase. solicit


contests When


are To create brand awareness

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and lucky draws

invited to compete on the and stimulate interest in basis of creative skills. the chance or luck factor. brand with the acquaint brand store brand Obtain feedback, advertisement The latter is based on the consumers traffic purchase. consumer promote at

usage and benefits build precipitate


theme of the company. Other than normal trade To push more sales to and cash discounts. trade early cash recovery. Those special displays, To attract traffic at the racks, banners, exhibits, retail that are placed in retail store to support the impulse sale of a brand visibility stores, buying, to remind encourage ensure the the customers,

7. Point-of Purchase (POP)

advertising campaign.


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Advertising and sales promotion activities plays a vital role in entire marketing efforts. Without these aspects a quality product can not survive in the market. Advertising and sales promotion tools are most essential for the modern global marketing. This chapter has therefore been devoted to the studies of advertising and sales promotional activities in M/s Lumbini Beverage Pvt. Ltd. The two basic objective for carrying out such various promotional activities by Lumbini Beverages Pvt. Ltd. Is to generate more sales as will as to create and maintain an image of its product. L.B.P.L. carries out its promotional activities as controlled and integrated programmes of communication and material design present its soft drink to the perspective customers. It also helps in communicating the need satisfying of soft drink to facilitate the sales eventually to contribute towards the profit in long run. The tool used by L. B. P. L. for fulfilling the various purposes of its promotional activities are the following :a) b) c) d) e) f) g) Free Bottle scheme. Rack Display. Umbrella Display. Free Cinema Hall Ticket with Lunch is good Restaurants. Lucky Draw Prizes. Price cut offer.

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The main motive behind the purpose of advertising of the PEPSI co. is to maintain the brand loyalty though recalling the memory of the users of soft drinks as to attract the potential consumers who consume a soft drink. On the national basis the media extensively used are : Newspaper, short also advertising films, Radio, T.V. Besides the advertising being carried out by Pepsi Co. Lumbini Beverage Pvt. Ltd., Hajipur carries out its own promotional program of which advertisement is an important aspect. The Lumbini Beverage Pvt. Ltd. Is free to use any media, messages, copy etc. as and when required by them but single factor which remain the same as used for each Pepsi Cos bottling company on national level. The main slogan being used by PEPSI Co. bottle all over India for its Cola Products has been The choice of new Generation. The main Model in the advertising is the Best Cricketer-Sachin Tendulkar, Best Actor Amitabh Bachchan, Sharukh Khan, Best Actress Kareena Kapoor, Preeti Zinta. YEARWISE ADVERTISING OF PEPSI SINCE 1990: After entering in India PEPSI started their advertising in planned way to fulfill the objectives expressed by Vibha Rishi, Executive Vice President, Marketing Pepsi Indiaas I believe in advertising that leaves a smile on your face.

In 1990:The first commercial came on screen with actress Juhi Chawala and Pop singer Remo. The theme was Feel the music. Are you Ready for the Magic? Went the jingle and this ad ends with opening of Pepsi bottle.

In 1992:The famous and unforgettable Punch line Yehi Hai Right Choice Baby . Aha! was introduced with Remo and twelve years old Penny vaz.

In 1993:This time also Amir Khan, Aishwarya & Sanjana have done the commercial on the theme Can I have Another Pepsi.

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In 1994:Here Pepsi introduced cricket star Sachin Tendulkar. Kambli and Azhar in which Sachin and Kambli fight for Pepsi bottle and in the meanwhile Azhar comes and takes the bottles. This aid also ended with the same punch Yehi Hai Right Choice Baby.. Aha!. In 1995:- In this commercial when Akshay is given another soft drink, then the kid in the audience shouts Hai Akshay Pepsi and he gets back his magic. And this aid also ends with the same punch line.

In 1996:Here, the commercial shows the enthusiasm of Sharukh to get Pepsi for his friend. He dodges the dog and with this he tries to show that Pepsi is the active choice to get for which the customer can do anything, and it is also revealed by the line Pepsi To Mai Pee Ke Rahunga In the same year the slogan Nothing Official About It, was introduced by Sachin, Azhar and Kambli.

In 1997 :I this year Pepsi celebrate the 50 years of Indian Independence by the slogan Shahrukh and Azhar. Azadi Dil Ki with

In 1998
In this year Pepsi has again involved many cricket stars for commercial with slogans More Cricket More Pepsi, Got a keep a cool ahead, Generation Next. Beside this it has flashed many commercials Leander Paes and Mahesh Bhupati for Mirinda (Orange) Mirinda.. for Mirinda (Lemon)the commercial aid done by the Bollywood star Amitabh Bachchan gave tremendous real Jhatka to competitor with help of punch line Jor ka Jhatka Dhere Se Lage which is ruling heart throbbing of millions. Apart from all these commercial Pepsi has sponsored many Sharjah Cup at Sarjah. PEPSI Independence Cup in India. YANNI Concert in Agra Asia Cup in SRILANKA

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In 1999:World Cup 99 was sponsored by Pepsi Co. The aid featured Shahrukkh Khan and Sachin Tendulkar and the Punch line Yeh Dil Mangay More became very famous.

In 2000:Aid featuring Shahrukh Khan with punch line Yehmore. In 2002:- Aid featuring Shahrukh Khan, Kareena Kapoor, Amitabh, and Sachin with the same punch line.

In 2003:Aid featuring Fardeen Khan, Saif Ali Khan, Kareena Kapoor, Preeti Zinta with the punch line Mausam Garam Hai Pepsi Ke Liye Hum Besharam Hai.

In 2003:ICC world Cup was also sponsored by Pepsi, featuring Shahrukh Khan in ad. Also an aid was featuring Sachin Tendulkar, Shane Warne and Carl Hooper Punch line Bhaga Diya Na.

In 2004:The Yojana Toss ka boss has been sponsored by Pepsi for ICC Championship Trophy in England in September. The winner of this Yojana would get the opportunity to watch the TOSS with Saurav Group on the pitch. After the collection of hundred coupons of Toss ka boss Sticker any person may be winner this game.

In 2005:This time the commercial advertisements has been done by Amitabh Bachchan, Shahrukh Khan, Sachin Tendulkar, Yuvraj Singh, Zaheer Khan, Mohd. Kaif etc. on the theme : Oye Bubli Oye Bubli.

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DISTRIBUTION CHANNEL OF LUMBINI BEERAGE PVT. LTD. To make its products available at the right place, at the right time in the market, at the right place, the sales department of the company plays major attention towards controlling the channel of distribution. The company right from its beginning stage maintains single type of marketing channel. The nature of channel is as follows: COMPANY DISTRIBUTORS RETAILERS CONSUMERS



At first, soft drink is supplied to distributors. Retailers cannot take the delivery directly from the company. They have to take it from their respective of nearest distributors. The distributors selected on the basis of assurance given by them regarding minimum sales, which they have mention annually. The selection is also done on the financial position and reputation of distributing in the market. As for the example, first priority is given to those people who are in cigarette business. Depending upon market each distributor in its initial

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stage, deposit some security money. This amount varies between five thousand to ten thousand. The distributors at first have to seek the permission to the sales department for the number of cases of soft drinks required by them. After getting for the proper authority from the sales department, they take the delivery from the shipping department paying the requisite either in cash or as demand draft. The distributors can be dropped if they fail to achieve the required target of sales. They can be also droped when they dont follow the instructions given by the company or when they charge high price or when they are engaged in black marketing, loading etc. But the company has not dropped any of its distributors till now. The supply of soft drinks to the distributors depends upon the ups and downs in the sales. But, in the initial stages, the distributors have to sell up to a minimum target set by the company or as decided by an agreement between the company and the distributors. In the last stages soft drink is supplied as and when demanded by the distributors.



The distributors select the retailers. There is no relation between the company and its retailers. On the other hand there is no definite and fixed criteria from the selection for appointment of retailers from the side of distributors. Any one like Panwala, Cigarette shop or any other shopkeeper can have the stall for the sale of soft drinks and they are called retailers or dealers. They have to give assurance to the concerning distributors for better sales and at the time of taking delivery they have to deposit the security that is the change for the empty bottles with specified purchasing price. Generally, there is no compulsion on that part of distributors to provide the transportation facilities to their retailers, but the distributors of the big areas like Patna, Muzzaffarpur, Patna provide the transportation facilities to their respective retailers. The distributors and

retailers are independent to sell as they want but are controlled to some extent by the company also, as they have to give some assurance regarding minimum sale. It happens so because they are given some incentives also. They are fully independent to gear up the market, as they want.

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Introduction Introduction Data DataCollection CollectionMethod Method Data source Data source Research ResearchInstrument Instrument Sampling Plan Sampling Plan

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Marketing Research is a process of collecting and analyzing marketing and ultimately to arriver at a certain conclusion. Lumbini Beverages Pvt. Ltd. Is a concern which is marketing the product having different brands Thus a survey method of marketing research is essentially exploratory in mature Thus a survey method of marketing research is essentially exploratory in nature Thus I opted for Questionnaire method for conductive survey about the marketing of Pepsi though retailer in Patna. Importance of marketing Research. Marketing Research have its importance not only for consumer market; it also effectively to the producer of goods and services The use of marketing research in consumer market may be explained on the basis of following services by it:-

1 2 3

It ascertains the position of a company in specified Industry. It indicates the present future trend of industry and points out how the companys affairs are to be turned up. It helps in development &introduction of new product.

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Since the study is exploratory in nature. A personal interview with each retailer was aid of questionnaire was selected as the method of obtaining data the questionnaire to used in Patna to facilitate tabulation and analysis of data were designed for segment retailers. Field experience showed that listing the respondents to the

questionnaire failed to touch upon certain parameters and it was found necessary to let the respondents have free had and let the designed information filter lengthy discussion, through some aspects of questionnaire adequately touch upon. The questionnaire was prepared by researches and the researcher also filled himself interviewing the retailers these himself interviewing the retailers. For interviewing the retailers these himself interviewing the retailers. For interview as far as those languages were used which they can understand clearly; such as Hindi & English. The researched used to stand in front of the randomly chosen retail outlet. This is a comprehensive master plan of the study undertaken, given a general statement of the method used and procedure followed.

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Since the study is both exploratory and descriptive in nature. A personal interview with each retailer with each retailer with the help of questionnaire was selected to obtain data. The questionnaire to be used in Patna only.

Data source:- The various source of information broadly divided in 2 categories.

(a) Primary source:- Source from where first hand information are gathered directly are called primary source and information thus collected is called primary data. In case of the above study the primary source was RETAILER.

( b) Secondary source:- The data that are collected for anther purposes are already existing somewhere is called secondary data. With regard to my study the secondary sources where records of the company. Magazines and papers.

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DATA COLLECTION METHOD . The following methods are widely used for collection data. (1) Survey method. (2) Observation method. In the above mentioned method. Survey and observation method was mainly used for the undertaken topic. Survey method was mostly used for collection of data through personal interview with the help of a framed questionnaire in case of retail outlets. Such as general store. Grocery shop, sweet shop , pan shop, restaurants and some others. As far as retailers are concerned .Besides survey. Observation method was also used to get data by watching the retailer. RESEARCH INSTRUMENT:- In this regard an instrument refers to means by which research is conducted . In this case of all the respondents questionnaire was used. SAMPLING PLAN: The samples were on judgment and convenience. A sample size of 105 respondents was taken. The sampling unit was retailers of Patna for which this sample size was considered a fair representative of the above mentioned area. The sample consisted of retailers spread over the entire area of the distributor. For analysis & interpretation of data the research used:Percentage = No of respondent Total No of respondents

X 100

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I was given to study the various distribution and marketing aspects, which are responsible for increasing market share of Pepsi at Patna under Distributor M/s Stuti Enterprises, Kankarbagh, Patna, Bihar.
I Studied :-


Market share of Pepsi and Coca-cola Company. Exclusive outlets of Pepsi and Coca-Cola Company. Visi coolers i.e. refrigerators of Pepsi and Coca-Cola in the market. Signage i.e. hoarding, glow sign boards & wall painting (for advertisements) of Pepsi and Coca-Cola in the market.

2. 3. 4.


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1. ROUTE :- Distributor M/s Stuti Entp, Kankarbagh, Patna

Sample Size-105


Market Share :
Monthly sale of Pepsi Products Monthly sale of Coco-Cola products Total sale Therefore market share of Pepsi products Market Share of Coco-Cola products = = = = = 3610 5035 8645 41.76% 58.24%


3907 7138



ii) EXCLUSIVE OUTLETS : Bharati Vidyapeeth University., Pune

Sample size 105 No. of exclusive outlets of Pepsi No of exclusive outlets of coca-Cola Mixed ( Pepsi & Coca-Cola ) = = = 6 (5.71%) 12 (11.43%) 87 (82.86%)

Ex-Pepsi Ex-Coca Cola Mixed

6 12 87

Ex-Pepsi Ex-Coca Cola Mixed


VISI COOLERS :Sample size = 105 Bharati Vidyapeeth University., Pune

No. of outlets having only Pepsi Visi coolers No of outlets having only Coca-Cola Visi coolers No. of outlets having both Pepsi and Coco-Cola Visi coolers No of outlets having only own Visi coolers No. of outlets having no Visi coolers

= =

21 (20%) 18 (17.14%)

= = =

9 (8.57%) 52 (49.52%) 5 (4.76%)

Pepsi Visi Coca Cola visi Pepsi & Coca Visi Own Visi No visi

21 18 9 52 5

Pepsi Visi Coca Cola visi Pepsi & Coca Visi Own Visi No visi



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Sample size = 105 No. of outlets having only Pepsi Signage No of outlets having only Coca-cola signage = = 20 (19.05%) 14 (13.33%) 2 (1.90%) 69 (65.71%)

No of outlets having both Pepsi & Coca-Cola signage = No. of outlets having no signage =

Pepsi Signage Coca Signage Pepsi & Coca Signage No Signage

20 14 2 69

Pepsi Signage Coca Signage Pepsi & Coca Signage No Signage



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Sample Size = 105

a) b) c) d)

Television as a medium for affecting sales Magazine / News paper as a medium for affecting sales Display as a medium for affecting sales

= = =

38 (36.19%) 10 (9.52%) 22 (20.95%) 35 (33.33%)

Wall paintings & Hoardings as a medium for affecting sales =

Television Magazine / News Display Wall Painting

38 10 22 35

Television Magazine / News Display Wall Painting

Do the retailers think that aggressive advertising or scheme further increase the sales volume of Pepsi ?
Sample size = 105 Bharati Vidyapeeth University., Pune

a) b) c)

Yes = No. = None =

81 ( 77.14% ) 16 ( 15.23% ) 8 ( 7.61% )

Yes No None

81 16 8

Y es No

Yes No None
Y es No Non e

Promotional activities that affect the sales mostly

Sample size = 105 a) Free bottle scheme as promotional activity = 62 (59.04%)

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b) c) d)

Prize as promotional activity Discount/crate as promotional activity Other as promotional activity

Free Bottle Scheme Prize Discount/Crate Others 62 21 17 5

= = =

21 (20 %) 17 (16.19%) 5 (4.76%)

Free Bottle Scheme Prize Discount/Crate Others



Pet Pepsi Pet Coca-Cola 52.55 % 47.45 %

Pet Pepsi Pet Coke

52.55 47.45

Pet Pepsi Pet Coke


This is self-explanatory. It is based on market survey. I found that the total result of soft drinks in Patna are as follows:-

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1. 2.

Pepsi is second largest soft drink & Coke is first. The total percentage of market share of Pepsi is 41.76% & Market share of Coca Cola is 58.24%.


The total percentage of exclusive outlet of Pepsi is 5.71% and exclusive outlet of Coke is 11.43%


The total percentage of visi-coolers of Pepsi is 20% and Coke is 17.14% & both Pepsi & Coke is 8.57% and 49.52% is own.

5. 6.

The total % if pet available of Pepsi is 52.55% & Coke is 47.45%. The total % Signage of Pepsi is 19.05% & Coke is 13.33%, both Pepsi & Coke 1.90%.& no signage is 65.71%.


The total % of medium that affects the Sales must Television 36.19% Magazine /News Paper 9.52%, Display 20.95% & wall Painting, Hoardings 33.33%.


The retailers think that aggressive advertisement or scheme further increase the sales volume the Pepsi. Yes 77.14%, No 15.23%, & None 7.61%.


The total % of promotional activities that affect the sales mostly. Free Bottle scheme 59.04%, Prize 20%, Discount / Carate 16.19% & other promotional activity 4.76%

SWOT ANALYSIS After doing three weeks fieldwork & thorough survey I can make

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it out the Swot analysis for Lumbini Beverages Pvt. Ltd. As well as for Pepsi brand. 1. 2. 3. 4. 5. 6. 7. 8. 1. 2. 3. 4. 5. 6. Though it has strong brand equity, brand image, it can survive in the most competitive situation. It has will built market & market share, currently holds over more than % market share. Customer retention customer satisfaction after sales service is satisfaction. Product quality is maintained. Distribution is effective. Promotional activities are satisfactory. In the Organization capable leaders (heads) & dedicated employees are there. Production house in well built.Still the company has not fault by there are many problems in dealers. Lacking of communication with retailer. Always break down in Pepsi Van by which Pepsi are distributed to retailers. It hampers in sale day-by-day. Timing of distribution is not logistic. Lack of efficiency, enthusiasion in salesman. Distribution of cooling equipment is not properly distributed.. Due to specific taste, Pepsi is lagging behind its nearest competitor brand Thums Up.

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1. The majority of retailers deal in all the brand of Pepsi & Coke.

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2. The study reveals that the market share of Pepsi in Patna is 41.76% as compared to Coca Cola is 58.24% thus Pepsi having a Clear edge over Coca Cola. 3. The study reveals the immediate steps are not taken in the replacement of damaged or breakage goods. The rival company Coca-Cola is very quick in this area. And efficient also. 4. Number of route vehicles for delivery of goods is less than the required one for proper coverage of whole area of Patna. Thus just in time and efficient delivery is affected. 5. The demand of Coke exceeds the demand of Pepsi. 6. The Lumbini Beverages Pvt. Ltd. Pays attention in different marketing function also these are : a) Anticipating & recognition of demand b) Stimulation of demand. c) Satisfaction of demand. 7. Company at certain interval conduct market survey to evaluate demand trend. Consumption pattern & nature of growing competition in spite of the fact that soft drinks has already high & almost stable demand. So company undertakes different promotional schemes to enjoy them. I had confirmed my study to different specified direction. As for Lumbini Beverages Pvt. Ltd., It can be said that it does not have any major draw back in marketing activities still more efficient distribution by dealers & more effective sales executives & sales forces are required. Though the over all grip maintenance is satisfactory & company can retain market share & also can upgrade it.


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The above study elicits the fact that sales department of Lumbini Beverages Pvt. LTD. should introduced some changes in its marketing activities to make it more rational. 1 . A healthy relationship should be developed by the company Executive with the retailers. 2. As most of the dealers have complaint that the salesman does not tell them about schemes. For this before launching any scheme company should advertise it by distributing Pamphlets to the dealers mentioning the Period of the scheme & time-to-time Proper check is required.

3. No. of route vehicles for delivery of goods should be increased in number for proper catering in the entire area of Patna effectively & efficiently.

4. Company should make fridge available at maximum outlets and repairing of its misleaders (refrigerators) and glow signboard, which are out of order in an outlet up to the level, thus it is parallel of even better than Competitors. 2. Proper supply of all brand of PEPSI.

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3. The commitment of supplying gifts items or incentive or incentive should be carried out on or before the scheduled time. 4. The distribution should keep literate and experienced sales man because they can convince to retailers easily and sold out the product in the market. 5. The company should supply its banners sign board etc. as an advertisement media impartially to all the parties of all areas which will as usual became sales promotion tool for them. 6. Distributor and retail out lets feed back should be taken time to time so as to trace the actual existing problem related to there and the market. 10.Company should develop policy. so that the soft drinks are made available at all the outlets during the peak seasons. 11.Leakage and blasted bottles are per policy of the company are taken back but generally these bottles may of the time are not taken back as a result an inharmonious relation develop between the company and retailers this should be rectified it has adverse effect in the brand of the company.

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(a) Marketing Management, The Millennium Edition : Philip Kotler (b) Marketing Management (c) Research Methodology (d) Marketing Research (e) Published Materials : Ramaswami : C.R.Kothari : G.C. Berry : Economics Times Business World Internet website Annual Report of the Company



Name of the shop/outlet : .................................................................. Address/Location Type of outlet (a) General Store (c) Sweet Shop (e) Dhaba /Canteen l .Q. Which brand of soft drinks you deal in ? (a) Pepsi (c) Both (b) Coca-cola (d) Other : ....................................................................... : .............................................................. (b) Pan Shop (d) Lassi /Juice Shop (f) Others

2.Q. Which brand of cola provides you better facility ? (a) Pepsi (b)Coca-cola (c) Both

3.Q. How many crates of Pepsi & Coca-Cola you sell/day ? (a) 0-1 crates (c) 2-3 crates (b) 1-2 crates (d) 3 & above

4.Q. Which companys signage you have in your outlet ? (a) Pepsi (c) Both (b) Coca-Cola (d) No signage

5.Q. Which companys visi - cooler you have in your outlet? (a) Pepsi (d) Own (b) Coca-Cola (e) Mixed Bharati Vidyapeeth University., Pune (c) both

6.Q. Which medium effects the sales most ? (a) Television (c) Display (b) Magazines/Newspapers (d) Wall paintings/Hoardings

7.Q. Do you think that aggressive advertising further increase the sales volume of Pepsi? (a) Yes (b) No

8.Q.What kind of promotional activities affect sale mostly? (a) Free bottle scheme (c) Discount Crates (b) Prize (d) Other

9.Q.Your recommendation for further sales mostly? ...................................................................................

10.Q. Any suggestion for betterment of Pepsi ? ...................................................................................

Bharati Vidyapeeth University., Pune