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The distribution network of PEPSI is well known for its efficiency but company constantly strives for the betterment of their distribution network system. Emphasis of our study was to focus on the customer of company i.e., the retailers.
The Retail Mapping of DELHI & NCR is an integral step for the assessment, development and betterment of this system. The distribution system not only comprises the movement of the products but also incorporates the merchandising of the product, which is very broad in its purview.
The project incorporates the analysis of the performance of PEPSI and probing into opportunities of increasing the market share in DELHI & NCR . The entire process had to be in an organized manner in order to deliver meaningful results for the purpose of decision-making. 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 DELHI & NCR .
PEPSI boasts of having the maximum market share in the beverage segment in DELHI & NCR and is in constant process for the betterment of its product performance and customer as well retailer‟s satisfaction.
4 . 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.INTRODUCTION The Project “Analysis of marketing of pepsi in the market with its compititors of PEPSI in DELHI & NCR ” Is designed on the lines of basic investment decisions to be taken by the senior officials of PEPSI for the purpose of amendments in the preexisting distribution network in order to review and strengthen the routes. Though the process is an ongoing one but the decisions have to be taken on a strong base. The findings of the project are very crucial for the increment of the market share of PEPSI in the DELHI & NCR & Beverage Market. supported by facts and figures and that too on papers. The Marketing Development Co-ordinator who was the lead or the project head delivered the objectives of the project to us expressly and we had to submit the day report to him along with the draft report.
To analyze, interpret and study the entire beverage market of DELHI & NCR Comparative study of the various brands, packs and flavors available in the market. Analysis of the strong and weak point of the competitors products and compare it with PEPSI.
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.
Assess the promotional measures in the context to the sales of PEPSI and focusing our study on the customer of company i.e., the retailers.
As obvious that any company is concern with the increase in sales of its products, 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.
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, which were as under: 1. Profitability 2. Sales 4. Improvement 5. To satisfy the customers
The Snacks food divisions manufacture and distribute and markets others snacks worldwide. The beverages segment primarily market it Pepsi diet. Frito-lay. Caleb Bradham a New Bern N. of USA. Beverages Snacks foods and Restaurants. Pepsi Mountain Dew and other brands worldwide and 7UP outside the U. 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. Pepsi Co.S. Pizza-hut. New York. Pepsi food international. It consists of many companies amongst which the prominent ones are Pepsi Cola. 8 .THE COMPANY PROFILE: PEPSI CO. Pepsi Cola Company now produces and markets nearly 200 refreshment beverages to retail.market. The group is presently into three most profitable businesses namely. is the world leader in the food chain business. They are positioned in close competition with Coca Cola inc. KFC and Taco bell.C druggist who formulated Pepsi Cola founded Pepsi Cola Beverage business at turn of the century.
Coke and Pepsi expended their rivalry to tea in 1991 when Pepsi formed a venture with No. When Coca Cola changed its formula in 1985. Also the company is changed colors from Generation X to GENERATION NEXT.The restaurant segment primarily consists of the operations of the worldwide Pizza-Hut. This represents a large field of potential customers for Pepsi Cola. supplies to Company owned and Franchise restaurants in the U.1 Lipton in response to Coke‟s announced venture with Nestle (Nestea). 9 . According to Beverage Digest the customer base for soft drinks is a whopping 95% of regular users in the United States. this portfolio will discuss its core business and its highly successful business of Beverages. Pepsi Stepped up its competition with its long time archrival claiming victory in the Cola-wars. This was the new color adopted by the company to strengthen its brand globally. PepsiCo‟s restaurant distribution operation. Taco bell and KFC chains PFS. The soft drink industry customer base is probably the widest and deepest base in a world that is flooded with some many categories. “Pepsi Co is going blue”. Although Pepsi holdings over the years have become diverse in such fields as the Snacks industry and Restaurants industry.S.
10 .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. These terms adopted in Pepsi‟s advertising campaigns are referring to the markets that marketers refer to as Generation X. “Generation Next”. Pepsi Cola throughout its 100 years of existence has developed much strength. Those Pepsi‟s main emphasis on this segment they also have a focus on the 12 to 18 year old market. The strong franchise system was the backbone of success along with a great entrepreneur spirit. Pepsi believes if they can get this market to adopt their product then they could establish a loyal customer for life. This enormous ad budget allows Pepsi to reinforce their products with reminder advertising and promotions. This large budget also allows Pepsi to introduce new products and very quickly make the consumer become aware of their new products. They adopt a lifestyle of living for today and not worrying about long-term goals. The Generation X consumer is profiled to be between the ages of 18 to 29. They have high expectations in life and are very mobile and active. or just as the “Pepsi Generation”.968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of 1997. Pepsi‟s franchise system and distributors is credited to bring Pepsi from a 7. One of the strengths that has developed Pepsi into such a large corporation is a strong franchise system.
Aquafina and a license agreement with Ocean Spray Juices. Starbucks. which at present time is the largest snack company in the world. These brands are Pepsi. Some other strong brands are All Sport. Pepsi has four soft drinks in the top ten beverages in the world. Slice. They have also made wise investments in snack food companies like Frito Lay. Tropicana. Diet Pepsi. and Caffeine Free Diet Pepsi. Probably high on the list of strengths is Pepsi‟s beverage line up. 11 .Pepsi also has had the good fortune of making very wise investments. Mountain Dew. Some of the best investments have been in their acquiring several large fast food restaurants.
B.ORGANIZATIONAL STRUCTURE Chairman President Unit Manager TDM ADC Customer Executive Distributers A.F Route Agents Helper .C Route Agents Helper 12 Customer Executive Distributers E.
Product Profile 13 .
14 . They adopt a lifestyle of living for today and not worrying about long-term goals. These terms adopted in Pepsi‟s advertising campaigns are referring to the markets that marketers refer to as Generation X. They have high expectations in life and are very mobile and active. “Generation Next”.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 Generation X consumer is profiled to be between the ages of 18 to 29. Pepsi prefers to position itself as the beverage choice of the “New Generation”. or just as the “Pepsi Generation”.
15 . Marketing plans like “Yeh Dil Maange More”.The rich deep blue coloring represents eternal youthfulness and openness. “Got Another Pepsi”. “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.
PEPSI-COLA LOGOS The Pepsi-Cola logo has changed many times over the years. 16 . Here's a chronological history of the various logos.
It Will Satisfy 1920 You 1928 1929 1932 1933 Peps You Up! Here's Health! Sparkling.It makes you Scintillate Drink Pepsi:Cola . 1903 Digestion 1906 1908 1915 1919 Invigorating. Aids Original Pure Food Drink Delicious and Healthful For All Thirsts .Pepsi:Cola Pepsi:Cola . Delicious It's the Best Cola Drink Double 1934 Refreshing and Healthful 1938 1939 Join the Swing to Pepsi Twice as Much for a Nickel Size 17 .Slogans and Logos 1898 Brad's Drink Exhilarating.
Have a Pepsi Now It's Pepsi for Those Who Think 1961 Young Come Alive! You're in the Pepsi 1963 Generation Taste that Beats the Others Cold. Pepsi's Got 1969 a Lot to Give 1973 1976 Join the Pepsi People Feelin' Free Have a Pepsi Day! 18 . 1967 Pepsi Pours It On.1943 1947 Bigger Drink. You've Got a Lot to Live. Better Taste It's a Great American Custom 1949 Why Take Less When Pepsi's Best? 1950 More Bounce to the Ounce The Light Refreshment 1954 Refreshing Without Filling 1958 Be Sociable.
Drink Pepsi Nothing Else is a Pepsi Generation Next Same Great Taste The Joy of Cola 2000 The Joy of Pepsi 2003 2004 Pepsi.Catch 1979 That Pepsi Spirit Take the Pepsi Challenge 1981 1983 1984 1987 1989 1992 1993 1995 1997 1998 1999 Pepsi's Got Your Taste for Life Pepsi Now! The Choice of a New Generation America's Choice A Generation Ahead Gotta Have It Be Young. Have Fun. It's the Cola 2005 19 .
2006 20 .
One of the strengths that have developed Pepsi into such a large corporation is a strong franchise system. Pepsi-Cola provides advertising. New advertising and exciting promotions keep 21 . This enormous ad budget allows Pepsi to reinforce their products with reminder advertising and promotions.968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of 1997. Pepsi‟s franchise system and distributors is credited to bring Pepsi from a 7. marketing. Pepsi also has the luxury to spend 225 million dollars in advertising a year. sales and promotional support to Pepsi-Cola bottlers and food service customers.STRENGTH & WEAKNESSES OF PEPSI CO. This includes some of the world's bestloved and most-recognized advertising. Pepsi Cola throughout its 100 years of existence has developed much strength. This large budget also allows Pepsi to introduce new products and very quickly make the consumer become aware of their new products. The strong franchise system was the backbone of success along with a great entrepreneur spirit.
and Caffeine Free Diet Pepsi. Aquafina and a license agreement with Ocean Spray Juices. Pepsi in today‟s market must be able to act as one instead of several separate units. Tropicana. Some other strong brands are All Sport. Pepsi has four soft drinks in the top ten beverages in the world. Slice. Mountain Dew. Probably high on the list of strengths is Pepsi‟s beverage line up. Ironically. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. These brands are Pepsi. This former strength is the franchise system. Diet Pepsi. 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. which at present time is the largest snacks company in the world. They have also made wise investments in snack food companies like Frito Lay. Lipton Tea. Starbucks.1 tea in the United States. Some of the best investments have been in their acquiring several large fast food restaurants. Pepsi also has had the good fortune of making very wise investments. 22 . The company also provides fountain beverage products. The franchise system in Pepsi Corporate view has become a liability. Pepsi Cola like any company has weaknesses.Pepsi-Cola brands young.
Some of these franchises are unwilling to support certain Pepsi 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. 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).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 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. Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena. Pepsi has tried to enter this market by trying to do in three years what took Coke 50 years to do. 23 . 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.
Pepsi customers buy their products because of taste.Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi customers also buy their products due to the high accessibility of Pepsi brands. packaging and promotional factors and of a wide variety of brands. price. 24 .
just approved by the FDA. The rich deep blue coloring represents eternal youthfulness and openness. For example. viz. Restaurants. 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. Mountain Dew has grown a staggering 74. They are the first soft drink makers to introduce a new one-calorie soda called Pepsi-One with. This marketing plan.1% over the last five years. Pepsi also has an advantage as an innovator in their field. Pepsi promotes itself as the choice of the “New Generation”. Pepsi gets this advantage by implementing such large marketing projects like “Project Globe”.4 soft drink in America. which Pepsi spent 637 million dollars over five years. Ace-K. Another competitive advantage that Pepsi has is in their product Mountain Dew. Pepsi has a competitive advantage over Coke because of the image it portrays. At this current pace Mountain Dew will be come the first non-cola to reach the 1billion gallon mark in one year.3% market share and has recently become the No. 25 .Pepsi products are distributed to many outlets. is to introduce the new rich deep blue coloring of its packaging. Convenience stores. Movie theaters and almost and other conceivable spots. supermarkets where Pepsi buys large shelf area and display areas so the customer can find them easier. Mountain Dew has a 6.
26 .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.2 against Coke and have become one of the world‟s largest Companies. As far as market share is concerned Pepsi stands strong. Pepsi has always been a strong No.
PepsiCo entered India in 1989 and is concentrating in three focus areas – Soft drink concentrate. With the introduction of the liberalization policies since 1991. The company has an extremely positive outlook for India. India is a key market for PepsiCo. and at the same time the company has added value to Indian agriculture and industry. Snack foods and Vegetable and Food processing. 1999) • This reflects that India holds a central position in Pepsi‟s corporate strategy." (PepsiCo‟s annual report. Pepsi took complete control of its operations. the company entered the Indian market through a joint venture with Voltas and Punjab Agro Industries.PEPSI-THE INDIAN EXPERIENCE • Pepsi is one of the most well known brands in the world today available in over 160 countries. • Faced with the existing policy framework at the time. which include more than a third of the world’s population. "Outside North America two of our largest and fastest growing businesses are in India and China. 27 . The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flown in.
Pepsi has 40 bottling plants in India. Pepsi has 19 company owned factories while their Indian bottling partners own 21. Manufacturing. Research & Development. Exports. out of which 16 are company owned and 24 are owned by Indian franchisees. Snack Foods & Beverages. The two advertisements tags: „yehi hai right choice baby‟ and „nothing official about it‟ immediately ring a bell. Marketing. Pepsi started its operations in India in 1989 and since then PepsiCo has set up a fully integrated operation in India viz. which has been built over the years. 28 . Pepsi in a short span of its operations in India has found a place in the hearts and minds of the Indian consumers.• One of PepsiCo‟s key strategies was to develop a completely local management team. The advertisement tag „yehi hai right choice baby‟ was the first „Hinglish‟ slogan ever used in the in the Indian market. In the mean time Pizza Hut and Frito Lay‟s are the examples in this regard only. Pepsi is a trendsetter managed and run by Indians. This slogan proved to be the best suited one for Pepsi and it was a mega hit and at that moment of time. The success has primarily been due to the innovative and passionate Indian team. One of the major player in franchisee is RKJ Group.it‟s got to be Pepsi.covering fruit/vegetable processing. Distribution and Franchising. where important decisions are taken locally.
The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India. with beverage manufacturing facilities in India and Nepal. 3 districts of Maharashtra. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra. suiting and shirtings. It has the license to supply beverages in the territories of Western U. 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. whole of Rajasthan.. half of Haryana. restaurants.P.The RKJ group is India's leading supplier of retailer brand Carbonated and NonCarbonated soft drinks. beer plant in Mauritius & edible oil plant in Sri Lanka 29 . part of M. 9 districts of Karnataka and whole of Nepal.. Goa.P.
another upcoming player in the market was. With the re-entry of Coca-Cola in the Indian market. the erstwhile bottler of Coca-Cola. “Pepsi-Cola and 7-up” launched markets in north India.” 1990: In March.PEPSI-COLA IN INDIAN SCENARIO Since the entry of Pepsi-Cola to India in 1989. Its offering includes Campa. “pure drinks”. Campa-Lemon & Campa-Orange. When Pepsi-Cola entered. the soft drink industry has under gone a radical change. Parle was the leader with the Thums-up being its flagship brand. Project granted by the “Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt. 30 .Cola. The chronology of the initial phase of the Cola wars in India was: 1977: Parle launched Thums-up and pure drinks launched Coca-Cola. Other products offering by Parle included Limca & Goldspot. 1998: In September. final approval for the Pepsi Foods Ltd. Pepsi-Cola had to go in for more aggressive marketing to sustain its market share.
1995: Pepsi-Cola lunched cans. 1994: Pepsi bought “Dukes & Sones”. 31 . 1993: Pepsi-Cola launched “Slice and Teem” captured about 25-30% of the soft drink market in about 2 years. International and domestic operations combined into one business unit called “Frito-lay Company”. simultaneously it rejects the Coca-Cola application “Citra” from the Parle. 1991: Pepsi-Cola extended its soft drinks business and reached at national scale. stable hited the market. having capacity of 330ml in various flavors 1996: Pepsi-Cola domestic and international operations combined into a Pepsi-Cola Company. The government cleared the Pepsi-Cola project again but with a change in brand name to “Lehar Pepsi”. Pepsi-Cola launched its product in Delhi and Bombay. 1992: In January. Pepsi-Cola and Parle start initial negotiation for a strategic alliance but took break off after a while. Brito foods application is cleared by the FIPB. 1990: In May.
2001: Pepsi-Cola launched Slice in “Tetra” Pack. 2003: Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season. 2005: Pepsi-Cola launched 7-up as “7-up ice”. “PET” bottle for health conscious people. 1999: Pepsi-Cola launched “Diet Pepsi” in can and 1. 1997: Pepsi-Cola brought “Mirinda Orange” opposite to “Fanta”. 2005: Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of movie Batman. 1998: Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”. Pepsi-Cola launched “Mountain Dew” to be more competitive with Coca-Cola 32 .5 Lit.
PEPSI-COLA PHRASES The Pepsi-Cola marketing phrase has also changed many times 1909-1939: 1939-1950: 1950-1963: 1953-1961: 1961-1963: 1963-1967: 1967-1969: 1969-1973: 1973-1975: 1975-1978: 1978-1981: 1981-1982: 1983-1983: Delicious and Healthful Twice As Much For A Nickel Too The Light Refreshment Be Sociable Now It's Pepsi For Those Who Think Young Come Alive! You're In The Pepsi Generation Taste That Beats The Others Cold You've Got A Lot To Live. Pepsi's Got A Lot To Give Join The Pepsi People Feelin' Free Have A Pepsi Day Catch That Pepsi Spirit Pepsi's Got Your Taste For Life! Pepsi Now! 1984-1990: 1990.2004 2004. The Choice Of A New Generation Pepsi nothing official about it Yeh dil mange more (Pepsi India) My Pepsi my world 33 .now Pepsi.1994: 1995.
PEPSI – BRANDS AND PACK PROFILE BRAND PACKS: The products are generally available in three kinds of packaging: 35 .
GLASS BOTTLES DISPOSABLE CANS PET JARS 36 .
FLAVOUR PACKS: 37 .
COLA (Carbonated Soft Drink): PEPSI ORANGE: MIRANDA ORANGE 38 .
MANGO: SLICE MANGO
MINERAL WATER: AQUAFINA
THE RKJ GROUP
It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Their services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to expertise and leadership in the fields of education, food and beverages.
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 pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only.
It has exclusive franchise rights for Northern & Eastern India. It has total 27 Pizza Hut Restaurants under its company.The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. 42 . professionally managed. Companies are medium sized. They have diversified into education by opening their first school in Gurgaon under the management of Delhi Public School Society. unlisted and closely held between Indian Promoters and foreign collaborators.
R. Roger A.O.The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. and Mr. George Bush. the 41st President of USA. PepsiCo Inc. Donald M. President of Pepsi Cola Company. in the presence of Mr. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo‟s centennial year celebrations at Hawaii. Mr. Enrico. founder of PepsiCo Inc. K.E. Chairman of the Board & C. USA. 43 . The award was presented by Mr. Kendall. Craig Weatherup..
Credentials 44 .
MAJOR CREDENTIALS VARUN BEVERAGES LIMITED RECEIVED “GOLD STANDARD AWARD” FOR PRODUCTION & QUALITY CONTROL FOR THE YEAR 1996-1997. 45 . JAIPURIA GROUP WAS ADJUDGED “BEST BOTTLER” OUT OF MORE THAN 2000 BOTTLERS ALL OVER THE WORLD FOR THE YEAR 1996-97.
LOCATIONS OF BOTTLING PLANTS OF PEPSI IN INDIA 53 .
Research Methodology 54 .
B. 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. The five phases into which the project was divided were: A. distribution and consumption. The process had to be started from the grass root level and it was very important to understand the market for this FMCG product. D. The data collected had to be systematically arranged. analyzed and reported in a form congenial to take on the spot decisions. Route Riding Retail Tracking Corporate Tracking Analysis of finding and observations Segregating DELHI & 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. which is very fast in production. E. C.THE MARKET RESEARCH PROCESS The entire project was divided into five phases and each phase had its individual significance and supplemented each other. 55 .
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 DELHI & 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. 56 . problems. All the phases mentioned above have been discussed along with the observations. and other dimensions which have been encountered and experience in detail in the following pages.
the Soft Drinks Industry has one of the most active network in term of its production. consumption and also personal relations at the very second level of its distribution network. the objective of which was: To understand and analyze the market in its raw and basic form. supply. To gain an in depth knowledge of the merchandising and processing activities of the Route Agents and understand the Beverage market. Due to the above stated reason it becomes very essential to study and analyze the market of these products from the grass root level. 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. So in the Soft Drinks Company as PEPSI. That is the reason why it is sometimes said to be “Very Fast Moving Consumer Goods”. distribution. ROUTE RIDING : The Beverage Industry or to be more specific. During the very initial days we were required to exercise Route Riding. marketing.A. 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. 57 .
The Route Riding phase was for the initial twinty days in which we had covered twenty different routes. The RA‟s were given the route planners and the particulars of the products. which was a significant feature of this industry. Not only this. 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. 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. the 58 . discounts and other incentives. the Pepsi Vans were charged and left the depot by 7:30 in the morning. and quantities along with the billing materials. The RA‟s been responsible for the accomplishment of their sales target on their routes and was given incentives on achieving the targets. The routes were allocated on the basis of individual areas and the demand of the product in that particular area. To develop innovative ideas to enhance the distribution system. flavors.‟s).A. accompanied by the Route Agent (R.. So it had a lot to do with schemes. 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. The Routes i. The vans had to cover the entire route and the RA had to do the merchandising and sales against cash.e. As there exists a player like Coca Cola.
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. display boards. banners. glow signboards. wall paintings. He was also concerned with the 59 . 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. VISI‟s (fridges). These monopoly sales counters enjoyed special benefits in terms of discounts. posters and other incentives. schemes.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 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.
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. Inquiring about the satisfaction of the retailers in terms of sales of PEPSI products. which were required to be recorded in. schemes. if any. rates billings. were: The quantity of the cold and warm stocks of all brands and flavors available at the outlet along with the outlet details. discounts. combo offers. and the benefits of promotional activities. 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. Inquiring about the behavior and merchandising of RA‟s in accordance with the companies‟ regulations and record complaints against RA‟s.promotional activities on his routes and handling of policy matters in the corporate regarding supply to industrial canteens and cafeterias. company or products. We as Research trainees were required to study and analyze the activities of the RA‟s and be familiar with the market. 60 .
61 . display boards. and also impact of nation wide advertising on brand loyalty by the customers. VISI‟s. Last but not the least. wall paintings. assessment of the effectiveness of promotional materials and activities like. counters. banners. racks. 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. 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. posters. shelves. signage. glow signs. assessment of the effectiveness of.
The retail mapping had to be conducted on the basis of the Retail Tracking Sheet (RTS). The new routes. their addresses. proprietor. 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.B. respondent etc and served as a vital database for all market since then for PEPSI in DELHI & NCR and had to be incorporated in the project in accordance to the companies policies. RETAIL MAPPING OF DELHI & 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 DELHI & NCR & NCR. which had been developed by the Marketing Development Coordinator and Customer Executives of the DELHI & NCR & NCR unit which incorporated the retail outlets. 62 .
Assessment of retailer‟s performance. Potential Retail Outlets. Non Existence. which was further reviewed by the Marketing Development Coordinator. 63 . 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. Classification of all retail outlets in DELHI & NCR into five broad categories viz. On Route. Assessment of the level of promotional measures required for increasing market share of PEPSI. Reachable and Non Reachable under the head. 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. SAP and WAP. Non Potential. The Data had to be classified in a systematic manner and presented in a predefined format..Objectives of Retail Mapping: Segregating entire DELHI & NCR for Strong Area Programme and Weak Area Programme i.e. The duration for the completion of the Retail mapping took duration of 20 days.
In the DELHI & 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. It is not the area of serious concern for the company. convenios. which are critically low in sales and the targets. 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. These areas are performing to the standards and are contented with the level of promotion schemes and other sales boosting measures. and the product availability on all these outlets. On the contrary the Weak Area refers to those areas or routes. are tough to achieve and require aggressive marketing 64 . The major thrust was on segregating the market for Strong Area Programme and Weak Area Programme. movie theatres.The Retail Mapping process incorporated of including of new outlets. restaurants and bars etc. For these Strong areas. hotels. SAP only aims at maintaining the performance of the product and enhancing the sales volume. The Strong Area refers to the routes on which the sales targets are met without much effort and have continuous demand for the products. which have been omitted or newly opened.
Other reasons could be poor distribution network.support. The 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. inadequate availability of the products on the outlet. undeveloped market as that of the interiors etc. 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. This involved the aggressive marketing strategy and heavy investment decisions to strengthen these markets. which are covered by the Route Agents and visited daily for sales and merchandising. The outlet is visited daily and actively involved in the sales of all brands and flavor packs of PEPSI. For this purpose the classification of the outlets into five categories was very crucial along with the other findings and observations discussed later. These five heads of classification have been discussed as under. The demand in these areas is fluctuating or rather feeble. NON EXISTENCE: 65 . inadequate promotional measures and marketing support. ON ROUTE : It refers to the retail outlets.
A careful assessment had to be done in case of Non Potential outlets.It refers to the outlets which were merchandising the product are no more in existence.e. It was also the area of operation of project to motivate these Non Potential outlets to undertake the merchandising of PEPSI. as they would turn to be potential in near future. NON POTENTIAL: It refers to those outlets.. they have diversified their business activity or have closed. 66 . i. 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 profitable Point Of Purchase of PEPSI by the customers. 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. POTENTIAL OUTLETS : It refers to those outlets. and those. The possibilities of setting monopoly counter were very fair at these outlets and were given special attention. o NON REACHABLE POTENTIAL OUTLETS : It refers to those Potential outlets which are not accessible by the PEPSI vans. the products can be made available with the PEPSI vans. 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.. There were cases in case of these potential outlets. 67 .e. The reachability decision had to be taken in context to the accessibility of the vans at these outlets. which were already merchandising PEPSI. which did not. dealt with beverage products.
C. The process of Retail Mapping was followed by the Corporate Mapping. 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. offices and canteens and the officials and workers base was very strong. CORPORATE MAPPING : DELHI & NCR being an entirely industrial city had huge potential for the sales of PEPSI in corporates as these concerns had factories. 68 . which incorporated of tracing of the organizations and assessing the market for PEPSI in these areas.
meetings. 69 . To review the product performance and satisfaction along with the expectations of the customers in corporates including PEPSI Dispenser Equipments.THE OBJECTIVES OF CORPORATE MAPPING WERE: Trace the organizations with and without canteens and cafeterias and estimate the market for PEPSI.e.. daily. or other occasions and the customers i. delegations. 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. Estimate the brand preference of PEPSI and COKE in the corporates and the reasons thereof. 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. whether the officials or workers or both. parties. To ensure efficient supply and record any complaints or grievances thereof.g.
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 findings and observations have been discussed in the coming pages. 70 . 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 DELHI & NCR and capture the market share of its nearest competitor. The corporate matters had to be given a special care as these had huge potential for the product. The matters were discussed and analyzed carefully by the MDC.
After the analysis sheets and formats have been surrendered to the C.D. to MDC for further review and reference. 71 . 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. 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.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. 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.
which gave the entire picture of the actual position if PEPSI in DELHI & NCR . 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. 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 Data and fact collected by the survey had to be analyzed and presented in a systematic form in order to draw meaningful inferences. 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. The performance of Coca Cola was also 72 . The discussion comprised of the further investments for the enhancement and extension of the routes and the level of promotional measures required in these areas. These Programmes have been discussed under the Retail Mapping Head. SEGREGATION OF DELHI & NCR : As discussed earlier that the major objective of the Retail Mapping of DELHI & NCR was to segregate the market for PEPSI for the Strong Area Programme and the Weak Area Programme.E.
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. The programmes were to be based on the seriousness of the problems and accordingly a mild or aggressive marketing. As already mentioned PEPSI is a VFMCG so the marketing strategies are going to be very dynamic in nature.and C. 73 . was to be known as Gate Meeting.E. 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.A.reviewed simultaneously and a comparative study was made to assess the performance and growth in the industry. promotional and investment programme was to be formulated.
Findings & Observation 74 .
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. at the right time is the key for winning consumer in soft drink business. Coke and Thumps up. 75 .e. PEPSI had approximately 64% market share in the soft drinks market in DELHI & 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. The most important and satisfying observation was that.. 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. at the right place. 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. data.FINDINGS & OBSERVATION The reports of each phase of the project had to be supplemented by the information.
racks. The enhancement in the distribution network would definitely increase the market share of PEPSI. 76 . wall paintings and better amount for purchase of shelf space for display. which is one of the reasons for the dissatisfaction of retailers. counter. as they do not move the schemes and other display materials and incentives information to the retailers. discounts. display materials such as VISI‟s. The present distribution system of PEPSI is the best in the entire FMCG industry in DELHI & NCR and the major strength of PEPSI. 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. The existence of sub-dealers and super stockiest are also the major area of problem. 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. signage. incentives and display materials.
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. 77 . One of the reasons can be assigned to the product positioning of PEPSI and Coca Cola. 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.
Analysis 78 .
MARKET STATUS OF PEPSI PRODUCT PEPSI-COLA PRODUCTS Aquafina 7% Lehar 7-Up 9% Pepsi 24% Lehar Soda 4% Mirinda Orange 14% Slice 20% Mirinda Lemon 3% Mountain Dew 19% 79 .
24% 330 ML (CAN) 2% 200 ML 37% 600 ML 12% 300 ML 25% 80 .PREFERENCE OF SOFT DRINKS IN QUANTITY 2 LT.
RATIO OF CONSUMPTION OF SOFT DRINKS PER 100 CONSUMERS Once in a week 3% Never 1% Twice in a week 12% Occasionaly 4% Daily 13% Often 67% 81 .
The other Statistics and finding have been presented in the form of various charts on the coming pages: DEMAND OF SOFT DRINK 10% 40% children youth 50% old 82 .
DEW MIRINDA SLICE 7UP OTHERS MIRINDA. 5 PEPSI. 15 83 . 15 OTHERS. 40 M. 15 M.DEW. 10 SLICE.CONSUMTION OF PEPSI BRAND PEPSI 7UP.
44 PEPSI.RATIO OF PEPSI AND COKE IN DELHI & NCR OTHERS. 11 COCK. 45 PEPSI COCK OTHERS 84 .
Which brand purchase is the most? . PEPSI Vs COKE 43 57% PEPSI COKE 85 .
SWOT ANALYSIS 86 .
3) Supply in certain area is very irregular and also route agents are not covering full routes. 2) Complaint handling was not up to mark. 2) Motivated channel partner. 3) Well defined routes.SWOT ANALYSIS STRENGTH: 1) Good market penetration. WEAKNESS: 1) All brands were not available in at least 80% shops. 4) Poor signage and display is making the routes week for the sale of Pepsi. 87 . Pepsi needs to concentrate on these new outlets and can gradually increase its sale in these area. glow sign and cooling equipments. 5) Interpersonal relationship with the company officials and the route agent is not satisfactory. OPPORTUNITY: 1) It is observed that in some newly establishing areas many new outlets are opening . 2) Large number of mix outlets can be changed to Pepsi exclusive and coke exclusive to mix only by luring them good and efficient supply.
Shine and the launch of Catch soft drink a product of DS group are causing decrease in sale in some areas.THREATES: 1) Coke is the only nearest competitor and it is catching up in the market penetration through price skimming and other promotional scheme. Tip Top . 2) Some local brands commonly known as kancha . 88 .
Conclusion 89 .
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.CONCLUSION The business of Soft Drink industry is significantly based upon the impulse buying. Keeping these facts in 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. The availability of the right brand and flavor pack. Though. at the right place. 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. 90 . at the right time is a key for winning the customer in soft drink business. Public relation is also critically important in this industry. PEPSI has a strong position in DELHI & NCR & NCR with the support of its efficient distribution network. aggressive marketing efforts and advertisements along with attractive schemes but there still exists potential market in DELHI & NCR & 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.
Recommendations 91 .
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. schemes. 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. and discounts. Every possible step should be taken for the satisfaction of the retailers. which have been identified on account of extensive analysis. 92 . which are offered to the retailers and should be based on a specific parameter such as sales volume.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 DELHI & NCR in the form of reports incorporating all information in an analyzed and summarized form. required suggestions to be put forward on the basis of the current market scenario. to avoid dissatisfaction and biasness among the retailers. But some critical and major issues. There should be uniformity in.
It is necessary 93 . Many retailers complained regarding irregularly in visit by the executives. 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. They also said that executive give very bad response to their complaints. First and foremost things are that. preferences. Different policies should be framed and implemented at different areas by looking and keeping various variables in the mind like buying habits. The company should modify its advertising strategy and educate the customers about its age-old existence and enhance its brand image. 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. education level financial position of that particular area and standard if living etc. whatever the policy is going to be formulated it should not be same for all the areas. Rural market being a very potential segment needs very quick and prompt efforts to be taken to capture this high volume market.
There is a great market of soda (1 Lit. glow-sign boards. so it possible company should cut down its price especially of cans. Supply of posters.that executive should make frequent visit to cover each outlet and try to provide them best Pouches. so the supply should be made possible quickly. Quality of PET bottle should be improved so that most problems can be minimized. so proper quality control measures should be implemented as company‟s reputation are at stake. 94 .) but the supply of this pack is very poor. Soft drink is still considered a treat virtually a luxury. tin boards. banners and sun pack sheets etc should be made at regular interval. foreign particles were found in few bottles.
bus stand. Retailers need display material. quiz programs etc. To enhance the marketing of the product. school functions. Wall painting should be made regularly in the area. major market and economies place etc. posh area. university programs. Proper advertisement should be made at railway station. Claim should be provided to the deserving retailers. A company may create favorable impression among the youth if they sponsors small events like college festivals. 95 . as it is a good medium of advertisement. Proper attention should be given to the retailer‟s problem so that they take interest to increase the sale. fashion shows.
Limitations 96 .
The seasonal changes affect the sell. 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.LIMITATIONS The retailers in many cases reluctant to answered many questions. The respondents may be biased on influenced by some other factors. A number of retailers (pan-shop) being illiterate. 97 . it took us lot of time in collecting information.
Main Key Points 98 .
After analyzing the market and calculate the weightage. the result comes out that Mountain Dew is the leading product of Pepsi-Cola. bottle. I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of PET. Most of the place like cinema hall and educational institutions are dominated by Pepsi-Cola.MAIN KEY POINTS Service aspect of agencies is very effective. they deliver their product according to the demand a just in time. Consumers do have a demand for 200 ml and 2 lit. that more better quality bottle should be used. Retailers have complaint regarding the PET. After conducting the market survey of retailer in Ghaziabad city. Retailers have problem in display material. 99 .
100 .) in particular remains short during the season. It was seen that Lehar Soda (1 lit. Aquafina (Pepsi-Cola) in Ghaziabad city dominated Kinley (Coca-Cola) mineral water. Maaza (Coca-Cola) is also dominated by Slice(Pepsi-Cola). Retailers have a demand of some offers and free gifts. Kinley soda (Coca-Coal) is also dominated by Lehar soda (Pepsi-Cola) in Ghaziabad city. In the market there is only a retailer on which the sale of the different product of different company depends.
Questionnaire 101 .
yes b. 2 lit. Are your customer satisfied with Pepsi ? a.3. no Q. 200 ml d. Kinley(Coca Cola) 102 .QUESTIONNAIRE Name Address : : ____________________________________ ____________________________________ ____________________________________ Contact No. All. e. Which quantity of soft drinks you have? a. Only Coca Cola c. : ____________________________________ Q. 500 ml Q. Do you provide home delivery of Pepsi ? a. Yes b. Leher Soda (Pepsi-Cola) b. How many houses? Q.2. Which brand of soft drink do you sell? a. Both. no Q. Only Pepsi-Cola b.1. 300 ml c. Q.6.5. b.4. Which brand of soda do you sell? a.
Both. Whose racks do you own? a. Pepsi-Cola b. Yes b. Do you get timely supply of these brands with proper schemes? a.10. During breakdown of chilling equipment who gives better service? a. Q. No…. Others. Both. No…. Kinley (Coca Cola) c.13. No. Q.Q. Q. Which brand of mineral water do you sell? a. Yes b. Only Pepsi-Cola b.8. Is there increase in sales due to display of the racks? a. Yes…. Is your chilling equipment working properly? a. Only Coca Cola c.11. No. Both. Only Pepsi-Cola b. Aquafina (Pepsi-Cola) b.12. Only Coca Cola c. Only Coca Cola c. Q. Coca-Cola = = Yes…. 103 .9. Q.7. Chilling equipment owned by you? a. Q. Only Pepsi-Cola b.
No c.14. a. Yes b. What %tage increase in sale you get after the schemes offered by PEPSI? a.Q. yes b. Are your customer SATISFIED of PEPSI schemes ? a.30% c. . 5-15% b. No. more than 50 Q.17. cant say Q.18 200 ML STOCK PCI REGULAR CCX 300ML PCY CCX 600 ML PCI STOCK PET CCX 2 LIT PCI CCX 104 . Availability of glow boards provided by company through promotional scheme.16.15. Yes b. Is the brand of pepsi is high on your sale? a. Q. Cant Say Q. no c.25.
Bibliography 105 .
google. Kothari) 106 .BIBLIOGRAPHY Marketing Management Principles of Marketing Research Methodology Magazines: Advertising Management Business India Business Today Business World www.com www. B. Gupta) (Written by C.com www.pepsico.com (Written by Philip Kotler) (Written by C.pepsiworld. R.
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