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A Summer Internship Project for

Master of Business Administration

(Marketing as specialization)


Md Mahtab Alam
Roll No. 13SCME104003
Enrollment No. 1313104004

Under the guidance of

Mr. Prafull Kr. Thakur Dr. Md Chand Rashid

TDM Assistant Professor
Pepsi SoB, Galgotias Univeristy



Md Mahtab Alam
Roll No. 13SCME104003
Enrollment No. 1313104004




Md Mahtab Alam
Roll No. 13SCME104003
Enrollment No. 1313104004

Under the guidance of

Mr. Prafull Kr. Thakur Dr. Md Chand Rashid

TDM Assistant Professor
Pepsi SoB, Galgotias University



The following Summer Internship Project Report titled "STUDY OF SALES PLANNING
AND PROMOTIONAL STRATEGIES OF PEPSI" is hereby approved as a certified study in
management carried out and presented in a manner satisfactory to warrant its acceptance as a
prerequisite for the award of Master of Business Administration for which it has been
submitted. It is understood that by this approval the undersigned do not necessarily endorse or
approve any statement made, opinion expressed or conclusion drawn therein but approve the
Summer Internship Project Report only for the purpose it is submitted to the Summer
Internship Project Report Examination Committee for evaluation of Summer Internship Project

Name Signature

1. Faculty Mentor Dr. Md Chand Rashid _____________

2. Industry Mentor Mr. Prafull Kr. Thakur _____________

Certificate from Summer Internship Project Guides

This is to certify that Mr. Md Mahtab Alam, a student of the Master of Business Administration
has worked under our guidance and supervision. This Summer Internship Project Report has
the requisite standard and to the best of our knowledge no part of it has been reproduced from
another summer Internship project, monograph, report or book.

Faculty Mentor: - Dr. M C Rashid Industry Mentor: - Mr. Prafull Kr. Thakur
Designation: - Asst. Professor Grade 1 Designation: - TDM
SoB, GU, GBN Organization: - PEPSI

Date: - Date: -


This is an attempt to know how the classroom theories can be applied to the practical situation.
As a student of MBA, it is a part of study for everyone to undergo summer internship at some
organization. So for this purpose, I got an opportunity to do my summer internship at PEPSI.
In this is comprehensive report, I have discussed about every major aspect of the company
which I have observed and perceived during my internship tenure.

Along with its processes, policies and procedures. This report covers many important aspects
which are related with operations and management aspect of construction. In the end the
learning and observations which I have undergone during my internship project. This report
also contains my perceptions, motivation level and the working environment of the

I express my satisfaction on the completion of this summer training program and project report
submission as a part of the curriculum for the degree of Master of Business Administration. I
express my deepest gratitude to my mentor for his kind guidance during the entire period of
training. Also I thank all the members of PEPSI for their kind support. They have always been
a source of inspiration to me.



S. No Particulars Page No.

Certificate iii
Acknowledgment vi
List of Figures viii
List of Tables ix
1 Company Profile 1
1.1 -Company Logo 2
1.2 -Mission & Vision 3
1.3 -History & Organizational Setup 6
1.4 -Swot Analysis 12
2 Internship Profile 13
2.1 -Tasks Assigned 13
2.2 -Location of Internship 14
2.3 -Detail of Tasks 16
2.5 -Internship feedback form 18
3 Key Observations 22
3.1 -Work Description 22
3.2 -Practices Followed 24
3.3 -Key Challenges faced while doing the tasks 25
4 Learning & Value Addition 26
4.1 -Major learning during SIP 26
4.3 -Usefulness of Internship with future perspective 27
5 Best practices and benchmark study 29
5.1 -Key Analysis & Findings 29
5.2 -Market share of each company in the same industry sector 29
5.3 -Growth & Opportunities in the respective industry sector 30
6 Recommendations & Suggestions 35
6.1 -Conclusion 35
6.2 -Recommendations 36
Bibliography 39


Figure Name Page No.

Figure 1 2

Figure 2 9

Figure 3 12

Figure 4 17

Figure 5 27

Figure 6 29


Table Name Page No.

Table 1 31

Table 2 32

Table 3 33

Table 4 35

I. Company Profile
India with a population of more than 100 crores is potentially one of the largest markets in the
world with urbanization and development of economy, tests and interest of the people changes
according to the advance nation.

Marketing is about the winning the new environment. It is about understanding what
consumer's wants a supplying it is more efficiently and more conveniently.

The consumer market may be identifying as the market for product and services that are
purchased by individuals as household for their personal consumption. Soft drink is a typical
consumer product purchased by individuals primarily quench their thirst and for refreshment.
Different types of soft drink are available in the market and more or less content of all soft
drink is same. The market of soft drink is facing a cutthroat competition and many companies
are floating in the market with their product 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 government of India has
considered the soft drinks industry as "Non-essential" As a result the excise duty lived by govt.,
on better soft drinks is very high.

Thus in a country like India where more than 20% of the total population exists below poverty
line, the consumer cannot effort 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.

Soft drink industries in India have an annual sale of about 4000 crores, with per capital
consumption of soft drink at a low seven bottle per annum (even Pakistan has a per capital
consumption of 14; in China and U.S.A. is more than 800 bottles) is due to price factor.

Therefore, 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 suitability of goods and services in the market to give maximum satisfaction
to the consumer.

The marketing manager is responsible for both Determining suitability of goods and
services presented by the company to the market, and also determining about potential market
and make batter 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 task relevant to any problem in the field of marketing".

1.1 Company Logo

Figure 1

1.2 Mission and Vision


"PepsiCo's overall mission is to increase the value of our shareholders" 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, and
efficient and environmentally sound; and providing a fair returns to our investor while adhering
to the highest standards of integrity."


"Our vision is to be a truly global company by continuing to build a competitive and profitable
worldwide refreshment beverage business."


Donald M. Kendall, President and Chief Executive officer of Pepsi-cola and Herman W. Lay,
chairman and chief executive Officer of Frito-Lay found in 1965 PepsiCo, Inc., through the
merger of the two companies. Caleb Brandham, a New Bern, N.C. pharmacist, created Pepsi-
cola in the late 1890s, at North Carolina in USA. Its CEO is Indira K. Nooyi. The 1961 merger
of the Frito Company, founded by Elmer Doolin in 1932, and H.W. Lay Company, founded
by Herman W. Lay, also in 1932, formed Frito-Lay; Inc. Herman Lay is chairperson of the
board of the directors of the company. Donald M. Kendall is president and chief executive


As an MNC, on the globe, Pepsi foods limited is one of the largest soft drink companies in the
world with its headquarters in New York.

Pepsi entered the Indian soft drink market in 1988 and began its production in May 1990 and
soon it was during 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 outlet. Pepsi's success in creating a brand almost from scratch
in India is the stuff that marketing case studies are made of. Given the problem 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 reduce by the enormous export obligations
stepped on the company. Yet right from the banging, Pepsi demonstrated a far more focused
approached. Therefore, while it entered a market like any other MNC, it was quick to adopt. It
realize that consumers, particularly the youth, to home it consciously reached out, would
identify batter with a brand that they see as global, yet Indian, Pepsi was built as a Desi brand.
Hens its deliberate attempt to build add campaigns using the popular Hinglish in the process,


Became part of India's popular consciousness. When Pepsi lost the bidding battle to sponsor a
Cricket tournament to coke, the loss was turned into triumphed with the aspiration in smaller
towns, the hinterlands of metropolitan cities and now days the slogan which is on air as "YEH

It showed a rare ability not only to survive, but also grow through India's tortuous policy twists
and turns, which threw many other MNC's off balance. Its top management team did not suffer
from the frequent changes see at rival, Coke Consequently, it was able to unlike Coke, which
paid enormous prices to buy out established local brands, and 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 drink across
the length and breadth of the country.


The soft drink market in India is quite wide. The production of soft drinks was started on 27th
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 a trouble for Coca-Cola,
which led to the withdrawal of its operation from India.

After the withdrawal of Coca-Cola from India, the Parley monopolized the soft drink market
in Bihar and took a lion's share of projects from the industries that even after McDowell's pure
drinks and local drinks entered in to the market, they would not compete with parley, once
again with the liberalisation of economy in 1991 Pepsi food Ltd. Entered in the Indian market.

It start bottling its product in Bihar by steel city beverage's company (now in Jharkhand state)
on 24th march 1991 owned by kamanis in collaboration with the Birla Group.

Which was once the bottling plant for Coca-Cola. Through parley range of products steel
captures a large share of Bihar's soft drink market yet Pepsi range of products is giving it a
tough competition in all flavours i.e. Cola, Orange and lemon.

In 1995, another bottling plant was installed at hajipur industrial area Pepsi food Ltd. Named

To meet the requirement of Pepsi range of products not fulfilled by still city beverage Ltd.

And due to increase demand of these brands. At present in Bihar their two bottling plant, the
ORIENT BEVERAGE Ltd. For Parle, now Hindustan COCA-COLA BEVERAGE Pvt. Ltd.
For Coca Cola is in Patna and LUMBINI BEVERAGE Pvt. Ltd. For Pepsi range of products,
is located as Hajipur industrial area.


With the urbanisation 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 Food Ltd.) it
started bottling its products in Bihar by Steel City Beverages, Jamshedpur on 24th 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 market of Bihar, parts of Bengal,
Orissa and Nepal. The company was the pioneer of soft drink in Bihar.

M/s Lmbini Beverages Pvt. Ltd. was established in the year of 1995.SA gentleman of Kolkata,
Khilani brothers were responsible to set up this bottling plant of Hajipur Industrial Area,
Vaishali having this motto to cope of whole North Bihar's market and to satisfy the prospective
consumers immediately. The function of organisation just started in 1996 but the production
went to production went to produce in March 1998.

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 Crores. It started
producing with its full capacity i.e. 600 bottles per min. 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. Its sells its product through different distributor, of PEPSI in Bhagalpur. Though this
plant has just completed one year of establishment., yet in the very first season it has given its
competitor a very though fights. The products range produced by Lumbini Beverages Pvt.
Ltd. is as under:-



MY CAN(Pepsi, 7 up, Mirinda)


AQUAFINA(Mineral Water)


Organisational Setup
Product Range
Manufacturing process of Lumbini
Beverages Pvt. Ltd.
Marketing Strategy





H.R. Manager Finance Manager H.O.S Plant Manager

M.D.M T.D.M.

M.E.E. B.D.M.






The product range produced by Lumbini Beverages Ltd is as under:-
MY CAN(Pepsi, 7up, Mirinda)
AQUAFINA(MineraI Water)

Figure 2


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 indicate, what
the firm wants to archives, the marketing strategy provides for archiving them.
The marketing strategy is not able idea. It is a well-outlined plan, and there are deferent 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 establish in India with a unique
marketing policy, Pepsi took into consideration of youth segment target marker. Though the
advertisement of Pepsi highlighted the style of living of young generation with different walk
of life. Pepsi brought in its advertisement different stalwart's personalities from fields like
young cine stars, sports stars & famous personalities from different fields. It has attracted the
young generation and of course, increase the sale of Pepsi, Pepsi national and international
programs to attract the young generation.


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, ware housing, channel

management etc. so the product could consentingly reach the consumer.

3. Promotion: - the firm carries out a no. of measures like personal spellings, advertising
and sales promotion program with view to communicate the consumer and promoter of the

4. Price: - it refers to the various prices to be provided to the customer before and after
sale period.

It is the mechanism to achieve the consumption of marketing process, striking the level price
that is accepted to the firm as well as consumer.

4ps. Policies of the Pepsi products

1. Product: - there are five lines of products of soft drink in India that is almost matched
with international quality product line.
Pepsi -200ml, 300ml, 400ml, 600ml, and 2000ml
Mirinda -200ml, 300ml, 400ml, 600ml, and 2000ml
7Up -200ml, 300ml, 400ml, 600ml, and 2000ml
Mountain Dew -200ml, 400ml, 600ml, and 2000ml
Slice -250ml, 500ml, and 1200ml
My can -250ml
Nimbooz -600ml

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 area the company has succeeded to some extent in reaching its target.

3. Price: - According to industry sources, this sector is heavily dependent on returnable

glass bottles and Pepsis latest price reduction strategy is critical to drive volumes.
4. Promotion:- in the specific seasons sales promotion methods are those sales activities
that supplement both -personal selling and advertising and co-ordination then and help to make
them effective such as display, show, exposition, demonstration, and other recurrent selling
effort not in ordinary route.

Pepsi has taken verity of tools and techniques of sales promotion. Like for example sales
promotion letters, catalogs, point of purchase (POP), display, customer services programs and
demonstration free sample.

Following are the some promotional activity of Pepsi:-Scheme: - Pepsi under Lumbini
Beverage has offered many schemes for sales promotion.
After doing Seven weeks fieldwork & through survey I can make it out the swot analysis for
Lumbini Beverages Pvt. Ltd. as well as for Pepsi, brand.

1. Through it has strong brand equality, brand image, it can survive in the most
competitive situation

2. It has will built market & market share, currently holds over more than percentage
market share.

3. Customer retention, customer satisfaction after sales service is satisfaction.

4. Product quality is maintained.

5. Distribution is effected.

6. Promotion activities are satisfactory

7. In the Organization capable leaders (heads) & dedicated employs are there

8. Production house in well built

Figure 3

Marketing channels are sets of interdependent organization involved in the process of
making a product or service available for use or consumption.

The main objective of the marketing process is to distribute the products to the actual
users. This function involves a number of sub-functions to be performed by a producer or
manufacturer. These two functions are most important first, the creation of demand is made
through the process of advertising and sales promotion activities. On the other hand the
distribution through the channels of distribution. The decision relating to the channel of
distribution is a very important decision from the firm point of view because the selected
channels affect considerable other marketing decision. Such decisions are of long term nature
and exercise their impact on the cost structure of the firm also.

By channel distribution mean the intermediaries or the process through which the goods
products are transferred from the producer to the ultimate users.

Now a day any of the producers possibly do not sell their goods directly to the final
users. There are a lot of intermediaries between producers and consumer, bearing a variety of
name performing various kinds of function. Some intermediaries like wholesalers and retailers
buy and resale taking the bill. They are known as merchant middle men and other are brokers,
representative sales agent who seeks or search for customers and negotiate on the behalf of the
producer but do not take of goods. These are called as middlemen.

The manufacturer and its distributive outlets share common objective to sell the
manufactured products at a profit. No doubt its objective differs with the marketing

2.1 Tasks Assigned

Even though many variation of specific objective fits into some categories. These are as

To built distribution network loyalty

To stimulate distribution
To develop managerial efficiency in distribution organization
To identify the source of supply for the product line at the final buyers level

The channel of distribution is a structure which organized and presents a choice among
alternative channels of distribution of the different marketing situations faced by retailers,
whole sellers and producers with in the structure. It may be considered as a series of function
which must be performed in order to make producers efficiency.

To bearing maximum profits of all institutions concerned a channel of distribution

should be treated as a unit of total system of action. The activities of the manufacturer need to
be coordinated with these middlemen used in the distribution of given product.

2.2 Location of Internship

Pepsi, Lumbini Beverages,

Hajipur, Bihar


The marketing executive must undertake to following steps in order to establish the
channel of distribution for a company.

1. He/She must understand the retail and wholesales market and type of middlemen
available in both.
2. He/She must understand the various conflicts which continually exist between and
within the channel.
3. He/She must select the general channel to be used keeping in mind the goals of the
company marketing programme and the job to be done by distribution system.
4. He/She must take decision regarding be intensity of the distribution (i.e. the number
of middlemen) to be used each level and each market.
5. He/She must select the specific firms which will handle his product and then manage
the day to day working relationship with them.
6. He/She must determine the methods and the procedure in firms (i.e. use of the
transportation and warehouse facilities and services in firms making programme) in
the physical distribution of the product.

Types of Marketing Channels

1. Direct marketing channel : A marketing channel that has no intermediaries level

2. Indirect marketing channel : Channels containing one or more intermediaries


Includes all the activities involved in selling goods or services directly to final
consumers for personal non-business use. A retailer or retail store is any business enterprise
whose sales volume comes primarily from retailing.

Retailers are the last but not the least in the marketing channel through whom the
eventual transfer of ownership of goods take place. The use of retailer boils down to their
superior efficiency in making goods widely available and accessible to target markets. In most
of the cases the retailers performs the important functions mentioned as under.

1. Information
2. Promotion
3. Negotiation
4. Ordering
5. Financing
6. Risk Taking
7. Physical Possession
8. Payment
9. Title

The major types of retailer are as following:-

1. Specialty Store: - They sell narrow product line with deep assortment.
2. Departmental stores: - They sell several product line with each line operated as
separate department managed by specialist buyers or merchandisers.
3. Super market: - They are relatively large, low cost, low margin, high volume self
service operation designed to serve total needs for food, laundry and household
maintenance product.

4. Convenience Store: - These are relatively small store located near residential areas,
open long hours, seven days a week and carrying an united lines of high turn over
convenience products at slightly higher prices.
5. Discount Store: - These sell standard merchandise at lower prices with lower
margins and higher volumes.
6. Off price Retailers: - These sell the merchandise which are bought at less than
regular wholesale prices and sold as less than retail. These may be of three types
mentioned as under:
a) Factory orders
b) Independent off price retailers
c) Warehouse clubs

2.3 Details of Tasks

The important of middlemen in channel of distributional can be over emphasized. It is that


1. Collects concentrates the output of various producers,

2. Subdivides these into lot desired by the customers gathers various items together in the
assortment wanted and

3. Disperses the assortment to consumer industrial buyers.

The role of middlemen that of specialist in concentration equalization and dispersion besides
he side in the creation of the time from and procession utilities


Product line is a group of product, that are closely related because they satisfy a class
of needs or used together or sole to the same customer groups or marketed through the same
types of outlets or fall within given price range.

Lumbini Beverages Pvt. Ltd., has the following product line:

Name Colour Flavour

Pepsi Brunti Cola

Mirinda Sunset Orange

Mirinda Tetrazine Lemon

Slice Sunset Mango

7Up Colourless Lime

Dew Colourless Lime

Lehar Soda Tetrazine Lemon

Figure 4

2.4 Summer Internship Feedback Form


Interns Name: ___________________________

Batch: _________________________
Company Name: _______________________________
Address: ____________________________________
Department (in which the training has been done): ________________________
Mentors Name: ____________________
Mentors e-mail id: ______________________________
Contact Number: ________________________

Part A: General Intern Performance Instructions:

Please rate the student intern on each of the following job dimensions. For each dimension,
sample behaviors of excellent and satisfactory performance are listed as guidelines:

Please mention the interns duties and responsibilities?

Performance Rating Scale:

1 = Unsatisfactory - did not meet expectations

2 = Fair - somewhat met expectations, but need improvement
3 = Satisfactory - met expectations
4 = Good - met and exceeded expectations
5 = Excellent - far exceeded expectations

1. Attitude/Effort: His/her attitude and efforts towards the work & duties assigned during

1 2 3 4 5
Ability to meet deadlines

Keen to take on extra duties

Seeks out opportunities
Always make a contributions in work
Always Takes initiative

2. Works Independently: His/her ability to work independently to complete tasks with
minimum supervision.

1 2 3 4 5
Always submit assignments timely

Complete tasks effectively

Tasks are fully completed

Team player/assists others

Needs constant

3. Adaptability: His/her ability to adjust to new work requirements, directions with a

minimum loss of efficiency.

1 2 3 4 5
Response to feedback

Attitude towards change to work duties

Acceptance to criticism and

modifications in behavior/task accordingly.

Ability to accommodate to new


4. Interpersonal Skills: Degree to which intern gets along with others (co-workers,
supervisor & clients.)

1 2 3 4 5
Ability to work well in groups

Professional behavior with


Effective and cooperative

relationships with co-workers

Ability to follow direction

5. Reliability: Consider of absences or degree of regularity in coming to work on regularly
scheduled work days during the period.

1 2 3 4 5
Punctuality & Regularity

Arrives on time or early

Absence planned/non-disruptive

6. Ability to learn: His/her ability to understand/grasp new ideas, opinions & instructions.

1 2 3 4 5
Interest in learning new tasks

Actively seeks out information

Continually improvement in job


Accept new ideas and instructions

Part B: Specific Internship Learning Objectives

(Specific learning objectives should be filled in by student prior to giving form to supervisor)

Additional Feedback/Comments

(1) What were the strengths of this intern?

(2) What were the weaknesses of this intern?

(3) Are you willing to take interns in next year? (Indicate one)

If no, why not?

(4) What qualifications would you like to see in future interns?

(5) If an opening became available in your firm, would you consider this student for a full-
time position?


(6) How would you assess the interns overall performance?

outstanding above average satisfactory below average


7) Any additional comments or recommendations.


Promotional activity for retailers & consumers

Meaning and objective of sales promotion
Advertisement & sales promotion in Lumbini
beverages Pvt. Ltd

3.1 Work Description

Promotional Activities (for Retailers)

Promotional activities consist of various means of communicating persuasively with the target audience.
The important methods are:-

1. Advertisement:- Where n identified sponsors pays media (such as TV) to transmit to target

2. Personal selling:- Where sales representative employed by the firm engage in interpersonal
communication with individual consumers and prospective customers.

3. Sales promotion:-Where die Market utilize displays, demonstration, premiums, contests or

similar devices.

4. 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
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 various
other non-recurrent selling efforts not in ordinary". "Sales promotion" is also known by the
name of "Extra Purchasing Value (E.P.V.)".


Advertising and sales promotion activities play a vital in entire marketing efforts. Without
these aspects a quality product cannot 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 promotion activities in M/S Lumbini Beverage
Pvt. Ltd.

The two basic objectives for carrying out such various promotional activities by Lumbini
Beverages Pvt. Ltd. is "to generate more sales as well as to create and maintain an image of its
product "L.B.P.L. carries out its promotional activities as controlled ad integrated programmes
of communication and material design present its soft drinks 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 tools used by L.B.P.L. for fulfilling the various purposes of its promotional activities are
the following:-

(a) Free bottle scheme

(b) Rack display
(c) Umbrella display
(d) Prizes
(e) Price cut offer
(f) Lucky draw

3.2 Practices Followed


Every company has to store its finished goods until they sold. A strong facility is
necessary because production and consumption cycles rarely match.

Warehousing is not a simply storing activity but a package of services that enables the
smooth running of the industry.

The stores must be in constant touch with the use department in order to provide
uninterrupted services to the manufacture and its decision since working capital is locked up
in the warehousing stores in equal to money.

The stores functions can be organized in the following manner:-

a) To receive raw material components equipments etc.

b) To meet the demand of use department by issuing the order
c) Accounting the transaction properly.
d) Minimizing obsolescence surplus and scrap by right identification and using
correct preservation method.
The company supply finished products frequently to different distributors as per the

Every distributor keeps a minimum stock of different products of the product line so
that the uninterrupted supply could not affect.

In the industrial sector service of optimization where boils down to any exercise of
optimization where limited available resources are to be distributed equitably. The
problem arises from the material that are in stock the form of capital cost, storage loss,
pilferage obsolescence, insurance, handling, documentation etc. Services level that can be
maintained and hence the concept stores in money should be understood by everybody in the


(1) Branding and Packaging

Out of the total market activities some are directly performed and controlled by
Lumbini Beverages Pvt. Ltd. itself some are followed according to the standing instruction
of Pepsi Foods Pvt. Ltd.

So far as the process of branding and packaging is concerned the Lumbini Beverages Pvt.
Ltd. Along with the authorized bottle in India adopt the same pattern.

(2) Wholesaling
Wholesaling includes all the activities involved in selling goods or services to those who buy
for resale or business use. Manufactures use wholesalers because wholesalers can perform
function better and more cost effectively than the manufacture can. These functions are not
limited to selling and promoting, buying and assortment building bulk barking, warehousing,
transporting financial risk bearing dissemination of marketing information and provision of
management services and consulting.

Like retailers wholesaler must decide on target market, product assortment and services
promotion and place. The most successful wholesalers are those who adopt their services to
meet and target customers needs, recognizing that existing to add value to the channel.

3.3 Challenges

Currently in India, a great deal of pressure is being put on the government to impose a heavy
tax on beverages with high sugar content. Budget meetings will take place in January 2017,
and the GST panel (Goods and Services Tax Bill panel) led by chief economic adviser
Arvind Subramanian previously wanted a 40% sin tax on carbonated beverages, tobacco, and
luxury cars. The current GST sin tax is 17% 18%.

This recommendation by the GST panel might seem outlandish, but first consider some facts:

According to Action on Sugar (AOS), Fanta (the second-most popular Coca-Cola

brand outside of the United States) has almost 12 teaspoons of sugar in India versus
six teaspoons of sugar in Ireland, Argentina, and the United Kingdom.
According to the World Health Organization (WHO), sugar consumption in India is
likely to rise to more than 15% of global consumption by 2019 2020. This would
make India the largest sugar-consuming nation in the world.
Processed food and drinks containing sugar has led to a significant problem with
obesity and poor health in India.

IV. Learning & Value Addition

Marketing research is a process of collecting and analysing marketing and ultimately to arrive
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 nature thus I opted for "Questionnaire" method for conductive survey about the
marketing of Pepsi though retailer in Bhagalpur.

4.1 Major Learning during SIP

Importance of Marketing Research
Marketing Research have its importance not only for consumer market; it also effectively to
the producer of good services. The use of marketing research in consumer market may be
explained on basis of following services by it:-

1. It ascertains the position of a company in specified industry.

2. It indicates the present future trend of industry and points out how the company's affairs
are to be turned up.

3. It helps in developing & introduction of new product.


Since the study is conclusive in nature. A personal interview with each retailer was aid of
questionnaire was selected as the method of obtaining data the questionnaire to use 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 responsible 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 him 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, Urdu & English.

Figure 5

4.2 Usefulness of Internship with future perspective

It is likely that your lecturers and tutors have already mentioned the importance of internships
and industry experience. It is also likely that the thought of careers and taking on work
experience might leave you feeling apprehensive, especially if you are still trying to get your
head around university life and study. When you think of all the benefits that go with
completing an internship, however, it really is worth it. To prove it, the Good Universities
Guide has put together five reasons why you should put some serious thought into completing
an internship.

1) You can make industry contacts

It has been said many times: its not about what you know; its about who you know. While
it is vital to know how to perform the required tasks for a particular job, having a good set of
industry contacts behind you can be just as vital in helping you find and secure a job after you
Internships are an excellent way to branch out from your university course into the industry
in which you are studying and expand your list of contacts, from university-based lecturers
and tutors to people who are currently working in the industry. Most internships will enable
you to work closely and develop professional working relationships with a specific manager
and team within the organisation, as well as meet a range of people in other departments and
outside the company.
If you play your cards right and are lucky enough to be in the right place at the right time then
you may find yourself being asked to stay on in a more permanent role, but even if you dont,
you will hopefully finish your internship with a great reference from your main mentor and a
range of potential referees. These references and referees will be invaluable when you are
looking for a full-time job, so always remember to ask. You should also try to remain on
good terms with your internship contacts and touch base with them from time-to-time; they
will be more likely to keep you in mind for other positions that crop up in the industry and
hook you up with those hard-to-come-by opportunities.

2) They look good on your rsum
The graduate job market is incredibly competitive, so having a full rsum that includes
actual industry experience is sure to be a valuable asset. It has the potential to make you stand
out from the competition.
Employers can read a lot from a sheet of paper. Having a number of internship experiences
will show that you are keen to gain employment in the industry and will also indicate to
employers that you have the right skills and enough experience to take on a permanent paid
position. Dont just leave an internship until your final year of study; the more internships
you complete, the fuller your rsum will become and the more attractive you will look to
future employers.

3) You can convert your academic knowledge into industry skills

While many TV shows portray interns as minions who perform mindless errands like
fetching coffee and sandwiches, internships involve so much more. You might actually be
surprised with the amount of responsibility that you are entrusted with. Interns are often
given specific individual tasks and responsibilities, as well as being designated roles within a
team working on a project.
For many students university can be quite theoretical and an internship is their first
opportunity to apply their knowledge to the real world. The experience will not only help you
to develop the skills needed to work in your industry; working on real projects for a real
organisation will also give you the interpersonal skills that you need to work effectively with
others and confidence in your own abilities. You may find that longer internships allow
you to work on projects from start to finish and give you a more in-depth experience of an
organisation. If you have the spare time then a month-long intensive internship or a part-time
internship over six months or a year may be a better option.

4) The experience will narrow down your list of potential careers

Internships really are a win-win situation. They can help you decide if a particular career or
area is or isnt for you, and narrow down the (often long) list of careers that you are interested
in to find one that you will be happy in. If you dont enjoy your internship experience then, at
the very least, it will have helped you to determine that a particular area isnt for you. Dont
give up, you can always try another internship in a different organisation, role or a
completely different field and see if you like it any better. Every experience helps you to
define and redirect your career path.

5) You can gain an unforgettable life experience

While the career you end up working in may be a bit more down-to-earth, internships allow
you to explore all the possibilities and come away with an experience that you will never
forget. While a full-time job may be hard to come across in certain areas and organisations,
many companies are willing to take on an intern. An internship could allow you to take a look
into professions and organisations that youve only ever dreamed of. You could find yourself
interning at a sporting club and attending matches and events, chasing the biggest story of the
year with a news crew, interning for a renowned fashion designer or coordinating a
prestigious event such as fashion week. You may even opt to look beyond your local city, and
complete an intensive internship over university holidays at an organisation interstate or



I was given to study to various distribution and marketing aspect, which are responsible for
increasing market share of Pepsi in under Bhagalpur Depot, Patna.
I studied:-

1. Market share of Pepsi and Coca Cola company

2. Exclusive outlets of Pepsi and Coca Cola Company

3. Visi-coolers i.e. refrigerators of Pepsi and Coca Cola in the market.

4. Signage i.e. hoarding, glow signboards and wall painting (for advertisement) of Pepsi
and Coca Cola in the market.

5.2 Market Share

Figure 6

5.3 Growth opportunities
The soft drink industry is looking for growth beyond developed markets like the US, where
the reach of carbonated soft drinks has reached a saturation point. The Coca-Cola Company
(KO) derived 58% of its 2013 revenues internationally. PepsiCo, Inc. (PEP), which is a
leading food and beverage company, generated 49% of its revenues outside the US.

Growth prospects
The per capita consumption in a region measures the average number of 8-ounce servings
consumed each year. For Coca-Cola, per capita consumption in 2012 was 745 in Mexico
and 401 in the US, as the chart above shows. But per capita consumption was
comparatively low in countries such as China and India, indicating that in many countries,
soft drinks are not consumed as widely as in the domestic market.

Companies including PepsiCo and Coca-Cola are focusing on these growth regions to
increase per capita consumption by investing in manufacturing and distribution networks, as
well as advertising.

Positive trends
Growing populations and better standards of living in emerging markets will drive demand
for beverages. Rising health awareness among consumers across the globe is moving them
toward better options including ready-to-drink tea, bottled water, and low-calorie products.

The long-term prospects for growth in emerging economies are promising. In the short-term,
however, there might be certain impediments such as lower-than-expected consumer
spending growth in countries such as China.

Competition outside the domestic market

Coca-Cola and PepsiCo compete with local niche players and private labels in developing
markets. For instance, in China, Hangzhou Wahaha Group Co., Ltd., Hebei Yangyuan Zhihui
Beverage Co., Ltd., and Guangdong Jiaduobao Beverage & Food Co., Ltd. are some of the
key players in the soft drink market.

Other soft drink manufacturers such as Monster Beverage Corporation (MNST) and
Mondelez International, Inc. (MDLZ) are also looking for international growth opportunities.
An alternative way to invest in the soft drink industry is through the Consumer Staples Select
Sector SPDR ETF (XLP).

Product Monthly Sale in Carat Market Share
Pepsi 3900 41%
Coca Cola 5520 59%
Total 9420
Table 1


Free Bottle Scheme


Coca Cola


No. of exclusive outlets of Pepsi = 58(9.20%)

No. of exclusive outlets of Coca-Cola = 236(37.46%)
Mixed (Pepsi & Coca-Cola) = 341(53.80%)
Table 2


Free Bottle Scheme
65% Prize


No. of outlets having only Pepsi visi coolers = 55 (8.66%)

No. of outlets having only Coca-Cola visi coolers= 255 (40.15%)

No. of outlets having both Pepsi and

Coca-Cola visi coolers = 70(11.02%)

No. of outlets having only own visi coolers = 244(38.42%)

No. of outlets having no visi coolers = 11(1.37%)

Table 3



Free Bottle Scheme



No. of outlets having only Pepsi signage = 30(4.72%)

No. of outlets having only Coca-Cola Signage = 113(17.7%)

No. of outlets having both Pepsi &

Coca-Cola signage = 18(2.83%)

No. of outlets having no signage = 474(74.64%)

Table 4


Free Bottle Scheme
61% Discount

1. The maturity of retailer deal in the entire brand of Pepsi and Coke.
2. The study reveals that the market share of Pepsi under Bhikhanpur Depot, Bhagalpur
is 39% as compared to Coca-Cola is 69%. Thus Pepsi having a clear edge over Coca-Cola.
3. The study reveals the immediate steps are not taken in the replacement of damage or
breakage goods. The rival company Coca-Cola is very quick in this area and efficient also
4. No. of route vehicles for delivery of goods is less than the require one for proper
coverage of whole area under Bhikhanpur Depot, Bhagalpur. Thus just in time and efficient
delivery is effected.
5. The demand of Coke exceeds the demand of Pepsi.
6. The Lumbini Beverage Pvt. Ltd. plays attention in deferent 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.
8. Patron & nature of growing competition in spite of the fact that soft drink has already
high & almost stable demand. So company under takes deferent promotional schemes to enjoy
I had conform my study to different specify direction. As for Lumbini Beverage Pvt. Ltd., it
can be said that it does not have any measure draw back in marketing activity still more
efficient distribution by dealers & more effective sales executives & sales forces are require.
Though the over all grip maintenance is satisfactory and company can retain market share and
also can upgrade it.


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 exclusive with the retailers.
2. As most of the dealers have complaint that the salesperson does not tells 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 and time-to-time proper check
is required.
3. No. of route vehicles for delivery of goods should be increased in no. for proper
catering in the entire area of Patna effectively & efficiently.
4. Company should make fridge available at maximum outlets and rearing 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.
5. Proper supply of all brand of PEPSI.
6. The commitment of supplying gifts items or incentive should be carried out on or
before the scheduled time.
7. The distribution should keep literate and experienced salesperson because they can
convince to retailer easily and sold out the product in the market.
8. The company should supply its banners, signboards etc. as an advertisement media
impartially to all the parties of all areas, which will as usual, became sales promotion tool for
9. Distributor and retail outlets feedback should be taken back time-to-time to trace the
actual existing problem related to there and the market.
10. Company should devolve policy. So that the soft drink 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 bottle may of the time are not taken back as result an inharmonious relation developed
between the company and retailers this should be rectify it has adverse effect in the brand of
the company.


Name of the shop/outlet : -----------------------------------

Address/Location : -----------------------------------
Type of outlet : -----------------------------------
(a) General store (b) Beetle Shop
(c) Sweet Shop (d) Lassi/Juice Shop
(e) Dhaba/Canteen (f) Others
1. Q. Which brand of soft drinks you deal in?
(a) Pepsi (b) Coca-Cola (c) Both
2. Q. Which brands of soft drink provides you better facility?
(a) Pepsi (b) Coca-Cola (c) Both
3. Q. How many crates of Pepsi you sell/day?
(a) 0-1 crates (b) 1-2 crates
(c) 2-3 crates (d) 3 & above
4. Q. How many crates of Coca-Cola you sell/day?
(a) 0-1 crates (b) 1-2 crates
(c) 2-3 crates (d) 3 & above

5. Q. Which company's signage you have in your outlet?
(a) Pepsi (b) Coca-Cola
(c) Both (d) No Signage
6. Q. Which type of signage you have in your outlet?
(a) Flex Board (b) Dealer Board
(c) Glow Sign Board (d) Wall Paintings
7. Q. Which company's Visi-Cooler you have in your outlet?
(a) Pepsi (b) Coca-Cola
(c) Own (d) Mixed
8. Q. What is the delivery schedule of Pepsi in your outlet?
(a) Daily (b) Weekly
(c) Alternate (d) Twice a week
9. Q. Which medium affects the sales most?
(a) Television (b) Magazine/Newspaper
(c) Both (d) Wall painting/Hoarding
10. Q. Do you think that aggressive advertisement further increase the
volume of Pepsi?
(a) Yes (b) No
11. Q. What kind of promotional activities affect sale mostly?
(a) Free bottle scheme (b) Coca-Cola
(c) Discount crates (d) Others
12. Q. What is your annual sale?
(a) Pepsi (b) Coca-Cola (c) Both5. Q. 13.
Which company's signage you have in your outlet?

(a) Marketing Management, The : Philip Koteler, 10th Edition, Prentice
Millennium Edition Hall Publication
(b) Marketing Management : Ranjan Saxena, 3rd Edition, Tata Mc
Graw Hill Publication
(c) Research Methodology : C.R. Kothari, 2nd Edition, New Age
International (P) Ltd. Publishers

(d) Marketing Research : G. C. Berry, 3rd Edition, Tata Mc Graw

Hill Publication
Economic Times
Business World
Internet website
Annual Report of The Company