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A

PROJECT REPORT
ON
“EFFECTIVE SALES AND DISTRIBUTION”
OF
S.M.V BEVERAGES, JAMSHEDPUR
(A FRANCHISEE OF PEPSI FOODS INDIA LTD)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS


FOR
AWARD OF B.B.M (MARKETING)
OF
XAVIER SCHOOL OF COMMERCE, BHUBANESWAR

SUBMITTED BY: SHUBHAM AGARWAL

Xavier School of Commerce,


Xavier University Bhubaneswar,
Bhubaneswar

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DECLARATION

I, Shubham Agarwal hereby declare that the following


project report of “Effective Sales & Distribution” at
SMV Beverages Ltd. PepsiCo, Jamshedpur (a
franchisee of Pepsi food India ltd.) undertaken during
the period from 15th May 2017 to 15th June 2017, is an
authentic work done by me. This is to declare that all
work indulged in the completion of this work such as
research, analysis of activities of an organization is a
profound and honest work of mine.

Date: 14-09-2010 Signature:


Place: BHUBANESWAR SHUBHAM AGARWAL

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ACKNOWLEDGEMENT

A successful Project can never be prepared by the singular efforts of the person to
whom the project is assigned but it also demand the help and guardianship of some
conversant person who underpin actively or passively in the completion of a
successful project.
In this context, I SHUBHAM AGARWAL, student of Xavier School of
Commerce, Xavier University Bhubaneswar. I would first of all like to express my
thank fullness to parents and family member, who have constantly supported and
encourage me in shaping my career.
I take this opportunity to express my deep gratitude to Mr. K.K. Thakur (H.O.S),
Mr. Rudradip Chakraborty (MDM), and Miss. Mukti Rani (H.R. Department),
of S.M.V Beverages PVT LTD. who has given me an opportunity to do the project
in their esteemed organization. I would not rather leave the opportunities to express
my gratitude and thank fullness as well, to Mr. Deepak Agarwal (Territory
Development Manager) for his invaluable guidance, keen interest, co-operation,
inspiration and of course moral support through my project session.

Faculty Guide
Mrs. Rashmi J. Singh

Date: 30th June, 2017 Signature:


Place : Jamshedpur Shubham Agarwal

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PREFACE

Practical training is considered to be an essential part of all the institutions and


those who are aspiring for BACHELOR IN BUSINESS MANAGEMENT. This
project is done in the field of marketing.
As aspect of management education, which receiving attention the evaluation of
the practical training is to bring actual environment in touch in BUSINESS
MANAGEMENT?
It rigidly accepted that the theory widens one’s thinking viz., concepts of
marketing philosophies, but practice indicates the modern marketing and used in
wide variety of setting of products.
This project work has been done for S.M.V beverages is the franchisee of Pepsi
Foods Ltd., and has its bottling plant situated at Adityapur industrial Area on Tata-
Kandra Road.
The report gives a true picture of the practical activities done by me within the
jurisdiction. The study area is limited to Jamshedpur and this adjoining area.
Hence, the result of study is particularly to Jamshedpur and general to the entire
town in Jharkhand.

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CONTENT

Name of the project: “EFFECTIVE SALES AND DISTRIBUTION”


Chapter No Title of the Chapter
1. INTRODUCTION TO THE STUDY

2. OBJECTIVE

3. IMPORTANCE

4. INTRODUCTION TO THE PEPSICO

5. MARKETING STRATEGY

6. DISTRIBUTION CHANNEL OF S.M.V BEVERAGES

7. RESEARCH METHODOLOGY

8. QUESTIONNAIRE WITH DATA ANALYSIS

9. SWOT ANALYSIS OF S.M.V BEVERAGES

10. FINDINGS

11. CONCLUSION

12. SUGGESSTIONS/RECOMMENDATIONS

13. BIBLIOGRAPHY

14. ANNEXURE

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1. INTRODUCTION TO THE STUDY

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Introduction to the study:

“Marketing is a social and managerial process by which individual and groups obtain what they
need and want through creating, offering and exchanging products of value and others”.
Phillip Kotler.

The American Marketing Association (AMA)

“The process of planning and executing the conception, pricing, promotion and distribution of
ideas, goods and services to create exchanges that satisfy individual and organizational goals”.

The 21st century was era of advertising, marketing and sales production; marketing is to convert
social needs into profitable opportunities. As it is said “Marketing thinking starts with the human
needs and wants”. Apart from basic necessities of air, water, shelter and clothing every person
has the strong desire for recreation and services. Marketing serves as the link between the society
need’s and its pattern of industrial response.

Beverages industry is one of the fast growing industries in India. It can be divided beverages into
two sections i.e Carbonated. The carbonated drinks are soft drinks that can be further classified
into cola, lemon, orange, mango segments

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Objectives:

 To know about the stock position of Pepsi brand and its competitors and different
Outlets.

 What is the market share of Pepsi through this training in Adityapur, Kadma, Sonari,
Jugasali ,Bistupur, Sakchi, Jamshedpur area?

 How many outlets in Adityapur, Kadma, Sonari, Jugasali ,Bistupur, Sakchi, Jamshedpur?

 What is the size of the market?

 Find out the various complains of dealers?

 To study the points of sale promotional activities at various retail outlets


a) To know the per day sale of Pepsi brand and its competitors in cases.

b) To study the percentage share of Pepsi’s cooling equipment

 To know how many outlets are covered with glow sign board of Pepsi?

 Top know the distribution method adopted by the organization.

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2. INTRODUCTION TO PEPSI

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History:
Caleb D. Bradham was born in Chinquatin, North Carolina in 1866 to a well to do family.
Caleb was a very well liked young man who was not only very smart but very popular as well.
Caleb wantedto become a doctor and after graduating the university of North Carolina he
entered medical school at the university of Maryland, Caleb’s father failed in his business. Caleb
had to quit school and take a job, so he moved to New Bern, North Carolina and took a job in a
teaching school.

Sometimes in the 1890’s Caleb created one such drink that become quite popular at the Bradham
Pharmacy and the patrons started calling it “Brad’s Drink” in Caleb’s honor. However, Caleb
preferred another name for this drink and he decided to called it Pepsi cola.

There has been some dispute as to whether or not the original Pepsi-cola actually contains pepsin
as an ingredient. The term “Pepsi” in its name is surely an indicator. One of Pepsi-cola’s earliest
known advertisement is found in the Feb 25th ,1903 New Bern daily journal and one of its claims
was that it “Aids Digestion” a popular claim for items containing pepsin. Lastly news paper and
produced in 1908 flat out said “Pepsi-Cola is an absolutely pure combination of pepsin- that
what your stomach needs these day’s- acid phosphate and the juice of fresh fruits.”

In 1903 Caleb filed for a trade mark for Pepsi-Cola with the state of north Carolina and the
document indicate that Pepsi cola had been in continual use since August 8, 1898. However in
1906 Caleb had to register “Pepsi-Cola” a second time in the U.S. patent office believed these
two name were too similar and since “Pep-Kola” had been trade marked on the Feb. 15,1899,
Pepsi-Cola had to come up with a new trade mark. Instead of changing the name of his product,
Caleb bought the right to the “Pep-Kola” trade mark and re-applied for his trade mark in 1906.
On these papers he gave the date Feb. 15,1896 as the earliest date Pepsi-Cola or names thus
derived were used by him. However, August 28, 1898 is the date most people set as the date that
Pepsi-Cola came into existing.

In any event, by 1902,Caleb had taken on an assistant named R.F.Buttler but better known as “
Uncle Dick” and while uncle Dick was put in charge of running the pharmacy, Caleb threw all
his energy into Pepsi-Cola. In his first three months Caleb sold 2008gallons of Pepsi-Cola syrup.
By the end of his first year ha had sold 7968 gallons of syrup. By 1904 he was selling 19,848
gallons a year and this is also the same year he started bottling Pepsi-Cola. A year later he also
began selling Pepsi –Cola bottling franchises and then he started expanding rapidly.

By 1910 he had 280 bottling franchises and covered at least 24 states. By 1907 he was selling
over 100,000 gallons of syrup a year and in1915 Pepsi-Cola corporation had assets of over
$1,000,000.

During world war I sugar prices to fluctuate wildly and that was assuming one could get their
hands on a supply of sugar at all. Eventually the government implemented price controls to
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stabilize the cost of sugar but even that didn’t help with the erratic supply side of the sugar
market. It was believed that once the war ended and the price controls were lifted sugar quickly
jumped in price. To make matters worse it appeared that the cost of sugar was going to keep
going up. Caleb and many other soft drinks manufactures decided to buy huge amount of sugar
and thus protect themselves from even higher sugar prices. Bad decision sugar prices peaked at
26? Per pound. During the previous couple of years Pepsi-Cola had been operating at a loss
because of fluctuating sugar prices and supplies, but now they faced a loss so large it was
unlikely they would be able to recover.

By March 2, 1923 “The Pepsi-Cola corporation” was bankrupt and two years later the “ The
Pepsi-Cola corporation” was allowed to die for non-payment of taxes. In 1934 at the age of 67
Caleb Bradham did not even able to hold onto his original drug store.

In 1923, when Pepsi-Cola went bankrupt its creditors had formed a corporation nmed “Craven
Holding corporation”. Once the bankruptcy took place this new corporation paid $ 30,0000 for
all of “The Pepsi-Cola corporation “ assets including the trade mark to Pepi-Cola. This was a
pretty common practice
for creditors as it made handling the bankruptcy easier. In July of 1923 a man named Roy
megargel formed the Pepsi-Cola corporation” in virgina and purchased all of the assets of Pepsi-
Cola from the craven Holding corporation for $ 35,000.

Loft owned and directly operated about 200 candy stores and the most of these had soda
fountains. In 1931 these lofty candy stores had sold over 30,000 gallons of Coca-Cola and gut
believed that since this was wholesale quantity he warranted a jobbers (middleman) discount.
Coca-cola disagreed with guth and repeatedly turned down guth’s discount request. Now the
Guth was ticked and Guth wasn’t the kind of guy you wanted to get mad. Guth didn’t just switch
from buying coca-cola to buying a competitors product instead he bought Pepsi-Cola and
become coca cola’s worst nightmare.

Megargel had contacted Guth and told him of the troubles he was having with Pepsi-Cola. Guth
then made an agreement with Megargel and this is how it worked. Guth borrowed
money from Loft Inc. ( he was short of case since his money was tied up in loft stock) and gave
it to Megargel to buy Pepsi-Cola at the bankruptcy auction. Guth ten formed the “ Pepsi-Cola
company”, a Delaware corporation with 300,000 shares of stock. After Megargel purchased
Pepsi-Cola at the auction for $ 10,500. Megargel then owned 100,000 shares of the new
company, Guth owned 100,000 shares and 100,000 shares would be kept by the new Pepsi-Cola
company to raise money in the future. Megargel was also promised a salary of $25,000 a year for
six years and after the six were up a2?? Royality for each gallon of Pepsi-cola sold.

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OUR MISSION AND VISON

We believe being a responsible corporate citizen is not only the right thing to do, but the right
thing to do for our business.

Mission:
Our mission is to be the world's premier consumer products company focused on convenient
foods and beverages. We seek to produce financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate. And in everything we do, we strive for honesty, fairness and
integrity.

Vision:
"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate -
environment, social, economic - creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making PepsiCo a
truly sustainable company.

Performance with Purpose:


We're committed to achieving business and financial success while leaving a positive imprint on
society - delivering what we call Performance with Purpose.

Our approach to superior financial performance is straightforward - drive shareholder value. By


addressing social and environmental issues, we also deliver on our purpose agenda, which
consists of human, environmental, and talent sustainability.

CORPORATE OFFICER:

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NAME: DESIGNATION:

1. Indra K. Nooyi Chairman of the Board


and Chief Executive Officer
PepsiCo
2. Zein Abdalla Chief Executive Officer
PepsiCo Europe
3. Saad Abdul-Latif Chief Executive Officer
PepsiCo Asia, Middle East, Africa
1. Peter A. Bridgman Senior Vice President
and Controller
PepsiCo
2. Albert P. Carey President and Chief Executive Officer
Frito-Lay North America
3. John Compton Chief Executive Officer
PepsiCo Americas Foods

4. Massimo d'Amore Chief Executive Officer


PepsiCo Beverages Americas
5. Eric Foss Chief Executive Officer
Pepsi Beverages Company

6. Richard Goodman Executive Vice President


PepsiCo

7. Hugh F. Johnston Chief Financial Officer


PepsiCo

8. Larry D. Thompson Senior Vice President


Government Affairs
General Counsel and Secretary

9. Cynthia M. Trudell Senior Vice President


PepsiCo Human Resources

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3. MARKETING STRATEGIES

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Introduction:

Marketing needs a framework that begins and ends with the customer. Marketing tools by
themselves do not achieve marketing objectives. There is an intermediate step between the
deployment of marketing tools and achievement of marketing objectives. A marketing network
consists of the company and its supporting stakeholders (customer, suppliers, distributors,
retailers, ad-agencies and others). The operating principle is simple: build and effective network
of relationship with key stakeholders, and profit will follow.

A set of marketing tolls the firm uses to pursue its marketing objectives are called marketing-
mix. These tools can be classified into four groups which are called the four P’s of marketing.

MARKETING MIX

TARGET
MARKET

PRODUCT PRICE PLACE PROMOTION

However some academicians feels that the four P’s of marketing have become redundant and
needs to be replaced by the four A’s or four C’s of marketing.

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Four A’s of Marketing

FOUR A’S

ACCEPTABILIT AWARENESS
Y

ACCESSBILITY
AFFORDABILIY

Four C’s of Marketing

FOUR C’S

CUSTOMER CUSTOMER
VALUE SATISFACTION

CUSTOMER
CUSTOMER SOLUTION
COST

Soft drinks are a FMCG product which has a wide and scattered market. Thus in order to succeed
companies needs to break down their marketing activities into sub parts to effectively meet the
customer needs.

THE ENTIRE MARKETING IN THES CASE IS DIVIDED INTO THREE PARTS:


a) Route structure, b) Home marketing, c) At work marketing

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Area Code :- Main Markets, Jamshedpur
Routes:-
1. Kadma
2. Sonari
3. Bistupur
4. Sakchi
5. Jugasali
6. Adityapur

RATES OF BOTTLES (ML)/CASES/PET JARS:-

QUANTITY PRICE/CARET

1. 200 ML 168/- c/s


2. 200 ML(SLICE TETRA) 285/- c/s
3. 200 ML (NIMBOOZ TETRA) 270/- c/s
4. 250 ML 258/- c/s
5. 250 ML(CAN) 398/- c/s
6. 300 ML 258/- c/s
7. 300 ML(SODA) 150/- c/s
8. 330 ML CAN 540/- c/s
9. 350 ML (NIMBOOZ) 330/- c/s
10. 500 ML 560/- per petti
11.600 ML 492/- per petti
12. 330 ML( DIET PEPSI) 540/- per petti
13. 1 L 349/- per petti
14. 1.2 L(SLICE) 556/- per petti
15. 2 L 482/- per petti
16. 500 ML (AQUAFINA) 193/- per petti
17. 600 ML (SODA) 264/- per petti

Problems:
a) Less supply of products in remote /small areas
b) Lack of offers/ scheme in rainy season
c) Poor transportation medium
d) Lack of demand due to seasonal fluctuations
e) Less supply of more demand products like slice

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DETAILED PRODUCT LINE &CHRACTERISTICS:

PRODUCT PEPSI COCA- COLA

COLA PEPSI THUMS-UP

………. ………. COCA COLA

ORANGE MIRINDA FANTA

LIME 7 UP SPRITE

……….. MOUNTAIN DEW ………….

LEMON ……….. LIMCA

MANGO SLICE MAZZA

SODA LEEHAR KINLEY

MINARAL WATER AQUAFINA KINLEY

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4.CHANNEL OF DISTRIBUTION FOR CONSUMER GOODS:

0-LEVEL 1-LEVEL 2-LEVEL 3-LEVEL

MANUFACTURER MANUFACTURER MANUFACTURER

DISTRIBUTER DISTRIBUTER

SPOKES

RETAILER RETAILER RETAILER

CONSUMER CONSUMER CONSUMER

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To make its products available at right place, at the right time in the market,
the sales department of the company plays major attention towards
controlling the channel of distribution.

The company right from its beginning stage maintains single type of marketing channel.
The name of channel is as follows:-

Company

Distributer

Retailer

Customer

At first soft drink is supplied to distributers directly. Retailer cannot take the delivery directly
from the company. They have to take it from their respective or nearest distributors. The
distributors selected on the basis of assurance given by them regarding minimum sales, which
the have mention annually. The selection is also done in the basis of the financial position and
reputation of distributing in the market. As for the example, in appointing distributer first priority
is given to those people who are in cigarette business. Depending upon market each distributor in
the initial stage deposit some security money. This varies between five to ten thousand.

The distributer selects the retailers. There is no relation between the company and its retailers.
On the other hand there is no definite and fixed criterion for the selection of appointment of
retailer from the side of distributers. Any one like “panwala”, “cigarette shop” or any other
shopkeepers can have the stall for the sale of soft drinks and they are called retailer or dealers.

They have to give assurance to the concerning distributers for better sales and time of taking
delivery they have to deposit security that is the change for the empty bottle with specified
purchasing price.

The distributors at first have to seek the permission of the sales department for the number of
cases of soft drink required by them. After getting the proper authority from the sales
department, they take the delivery from shipping department paying the requisite either in cash
or as demand draft.

Generally there is no compulsion on that part of distributers to provide the transportation


facilities to there retailers. But the distributers of big areas like Ranchi, Jamshedpur and bokaro.
Provide the transportation facilities to there respective retailers. The distributer and retailers are
independent to sell as they want but are controlled to some extent by the company also, as they
have to give some assurance regarding minimum sales. It happens to because they are given
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incentives also. They are fully independent to gear up the market, as the want. The company
dose the gearing job itself also and times it advices them to the gearing up in a way, which is
more profitable for all of them.

The distributers can be dropped if they fail to achieved the required the target of sales. They can
also be dropped when they can not follow the instruction given by the company or when they
charge high price or when they are engaged in black marketing, loading etc. but the company has
not dropped any of its distributers till now.

The supply of soft drinks, to the distributers depends upon the UPS and down in sales. But in the
initial stages the distributers have t sell up to a minimum target set by the company or as decided
by an agreement between the company and distributers. In the later stages soft drink is supplied
as and when demanded by the distributers.

1. 8 Sales building blocks:


1. Distribution
2. Space
3. Location
4. Appearance
5. Freshness
6. Range
7. Schemes/POS
8. Service
2. 5 Min Sales:
1. Opportunities
2. Benefits
3. Recommendations
4. Ask
5. Follow up

3. 10 Route Process:
1. Planning
2. Vehicle load determination
3. Vehicle loading
4. Call preparation
5. Work the store
6. Retailer communication
7. Unloading
8. Merchanding
9. Call causer
10. Day and week causer

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4. 5 Rules of Rack:
1. Only rack product in rack
2. MRP wise
3. Brand wise
4. Flavour wise
5. NPD and focus packs in second self

PEPSI RACK DISTRIBUTED IN DIFFERENT OUTLETS:

S. NO OUTLETS ADDRESS

1. Rajdhani stationary Kadma


2. Langda Hotel Kadma
3. Sri Ram Bhandar Kadma
4. Babu Saheb Hotel Kadma
5. Modi center Adityapur
6. Ganesh Bhandar Adityapur
7. Kanahya Adityapur
8. Ramesh pan dukan Dimna
9. Student general store Dimna
10. Gupta Bhandar Dimna
11. Arvind pandukan Fruit market
12. Mithlia sweets Fruit market
13. Neha Phonex Dimna
14. Bhola Sweets Fruit market
15. Thakur sweets Fruit market

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FREEZE COMPLAINS:

S.NO OUTLETS ADDRESS


1. Monika store Adityapur
2. Bhola Sweets Kadma
3. Neha enterprise Sec-2
4. Ashish enterprise Sec-2
5. Thakur Jugasali

Result: Problem solved.

BOARD REQUREMENT:

S.NO OUTLETS ADDRESS


a) Ranjit stationary Bistupur, bus stand
b) K.K store Sec-4 Mango
c) Banjara store Dimna
d) Mahamaya sweets Shere punjab chowk

Result: Not given yet.

NEW FREEZE DISTRIBUTION:

S.NO OUTLETS ADDRESS


1. Jagdamba store N.I.T
2. Tarak sweets Bistupur market
3. Bhola sweets Sakchi market
4. Ramesh Pandukan Adityapur
5. Student general store Adityapur

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DISTRIBUTION CHART:

S.M.V BEVERAGES PVT.


LTD. (FACTORY)

HML (FACTORY) INSTITUTION


DIRECT OPERATION OPERATION

CSD RAILWAY AIRLINES

DISTRIBUTER DISTRIBUTER

DEALER DEALER DEALER DEALER

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5.RESEARCH METHODOLGY:

The methodology used for collecting the data is considered to the primary for any report. The
research design of this report is exploratory i.e formulating a problem from more precise
investigation. The main emphasis is on the discovering of ideas and insights. The formulate
research design is characterised by great amount of flexibility. It contains of the characterized by
great amount of provide opportunities for considering different aspect of problem undertaken in
the study.

1. COLLECTING OF DATA:

Data was collected on the basis of primary and secondary.

1.1 Primary Data:


The data, which is being collected for the first, is known as primary data.

1.2 Secondary data:


The data, which is already assembled, is the secondary data i.e magazines, websites
and organisation report.

2. METHODOLOGY OF THE STUDY:

2.1 Exploratory:
To find the per day stock and per day sale at different outlets exploratory research
method are adopted. A survey form was prepared and the retailers were asked to
answer them during the course of their interview.

2.2 Schedule Method:


Dealer’s responses were conducted with the help of a prepared schedule. Samples are
taken at different location in MAYURI MARKET, RANCHI-4.

2.3 Documentary Observation:


Books, Annual reports, Web sites, Published and unpublished materials.

2.4 Field Observation:


During training period I did extensive survey of the distribution outlets and consumer
to observe the marketing operation performed by the organisation.
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SAMPLING TECHNIQUES:
Sample is a very useful term used knowingly or unknowingly by many. A common man used it
for making personal decision. It is used in a routine, for automobiles, temperature etc. however;
sampling is extensively used in marketing research.

There are two type of sampling methods:


1. Probability methods 2. Non probability methods

Probability method includes:


a) Convenience sampling b) Quota control sampling c) Judgmental sampling

A non-probability method includes:


a) Simple random sampling b) Systematic sampling c) Stratified sampling

In this project I have used convenience sampling method of collecting data.

SAMPLE SIZE:
Sample is one part of population representing characteristics population. To select a sample is an
easy job but to collect an appropriate samples size is tough job. Sample should be unbiased.
Sample must be drawn under some conditions of population. As population of the survey was too
large and it was almost difficult to reach every person personally. I have selected 200
respondents of Pepsi product through survey method.

UNIVERSAL/POPULATION:

The term population or universe means the totally of all elements that are relevant to the scope of
the problem under study. In this project my universe was RANCHI district in Jharkhand

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6. Questionnaire

With

Data Interpretation &Analysis

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1. ASKED FROM OWN DEALER:
(About Mayuri market, Ranchi)

1.1 What is the capacity of your warehouse?


A) CARETS

GUANTITY NO.OF CARETS


200 ML 1100
250 ML 500
300 ML 500
TOTAL 2100

CARETS

500
1000
200 ML
250 ML
500
300 ML

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B) PET JARS
QUANTITY NO.OF PETTI
½L 150
600 ML 300
1L 100
1.2 L 200
2L 250
TOTAL 1000

PET JARS

250 150

1/2 L
600 ML
300 1L
200
1.2 L
100 2L

C) SODA WATER:- 50 CARET

D) AQUAFINA MINARAL:- 500 PETS

TOTAL CAPACITY:- ABOUT 3650

1.2 How many vehicles you have for loading?


NO OF VEHICLE= 4
1.3 How many workers are working for your business?
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NO OF EMPLOYEE=18
1.4 What is the quantity of daily selling Pepsi product?

CATEGORY QUANTITY(CARET/PET)
CARET 70
PET 30
SODA WATER 5
AQUAFINA MINERAL 10
TOTAL 115

Quantity Of Daily Selling

20

50
15 CARET
PET
SODA WATER
30 AQUAFINA

OBSERVATION:- The selling of PEPSI products may be vary due to market conditions,
seasonal fluctuation etc. The selling of PEPSI products is always in its peak positions during the
month February to July. In rainy season, the selling becomes down automatically. Hence per day
selling is varying.
1.5 Have you the capacity to fulfill the target of the company?
YES

CAPACITY NO. OF NO. OF QTY. OF CAPACITY COMPLA-


OF WARE- VEHICLES EMPLO-YEES DAILY TO INTS
HOUSE SELLING COMPLETE AGAINST
PRODUCTS THE TARGET COMPANY

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About 4 15 115 Yes No
3500

2. ASKED FROM CUSTOMER:

NO.OF RESPONDENT=200

Q.2.1 Do you like cold drink?

CATAGORY NO.OF PERSONS PERCENTAGE


YES 170 85%
NO 30 15%
TOTAL 200 100%

No of person prefer cold drinks

180

160

140

120
170
100 NO
80 YES

60

40

20
30
0
NO YES
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NO. OF PERSONS SAYS YES (170)- CATOGARISED BY AGE

AGE NO.OF PERSON PERCENTAGE


Above 5 to 15 years 40 23.5%
Above 16 to 25 years 60 35%
Above 26 to 35 years 35 20.5%
Above 36 to 45 years 20 12%
Above 46 to 55 years 15 9%
TOTAL 170 100%

CATOGARISED BY AGE

9%
23.50%
12%
Above 5-15
Above 16-25
20.50%
Above 26-35
35% Above 36-45
Above 46-55

OBSERVATION:-In the above diagram show that the regular consumer of the soft drink are
generally youth masses like yes(85%) and no(15%). So it is clear that soft drinks are usually
product of mass consumption. The serve was conducted over 200 people in Ranchi-4 (area code).

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2.2 If yes, which cold drinks you like most?

CATOGARY NO.OF RESPONDENT PERCENTAGE


7 UP 25 12.5%
SPRITE 30 15%
THUMPS UP 40 20%
PEPSI 30 15%
SLICE 25 12.5%
MAAZA 30 15%
M. DEW 20 10%
TOTAL 200 100%

Preference of respondent for a particular cold drink


20%
20.00%
18.00%
16.00% 15% 15% 15%

14.00% 12.50% 12.50% 7 UP


12.00% 10% SPRITE
10.00% THUMPS UP
8.00% PEPSI
6.00% SLICE
4.00% MAAZA
2.00% M.DEW
0.00%

OBSERVATION:- In above data diagram shows that, THUMPS UP is the main competitor
of PEPSI. In mango segment MAAZA is the main competitor of SLICE and in lime segment
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SPRITE is the main competitor of 7 UP and M.DEW. above survey was done with 200 person in
RANCHI city.

2.3 If no, why you do not like cold drinks?


OBSERVATION:-
a) Some persons prefer for natural and indigenous drinks like Sattu, Lassi, Fruit juices
etc.
b) High amount of Carbonic Acids.
c) Not good for health.

2.4 Are you regular drink cold drinks?

CATAGORY NO.OF PERSONS PERCENTAGE


YES 155 77.5%
NO 45 22.5%
TOTAL 200 100%

Respondents who regular prefer cold drinks

200
150
100 155
YES
50
NO
0 45
YES
NO

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OBSERVATION:-Concerned diagram analyzed that soft drink are a FMCG product which
has a wide and scattered market. Hence soft drinks are one of the largest consumer markets. The
person who says NO (22.5%) are generally the age above forty (40) years.

2.5 Which brand you like most either PEPSI or COCO COLA?

CATEGORY NO.OF CONSUMER PERCENTAGE


PEPSI 95 47.5%
THUMS UP 105 52.5%
TOTAL 200 100%

No of person prefer a particular brand


106

104

102

100

98 PEPSI
105 THUMS UP
96

94

95
92

90
PEPSI THUMS UP

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OBSERVATION:- According to above Data Analysis diagram, it gives the information that
in cola segment, its biggest rival COCA COLA has a very good market share due to its taste
and also the distribution of COCA COLA is very strong in the outskirts of the city.

2.6 If Pepsi, why do you like Pepsi?


OBSERVATION:-
a) Easy available in most outlets.
b) Due to its taste and flavor.
c) Sweet and low fizz soft drink.
d) Prefer generally by young people.

2.7 Which Pepsi flavor you like most?

FLAVOR NO.OF RESPONDANT PERCENTAGE


PEPSI 80 40%
MIRINDA 20 10%
SLICE 50 25%
7 UP 20 10%
MOUNTAIN DEW 30 15%
TOTAL 200 100%

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No of respondent for a particular flavor, out of (200)
80
80

70

60

50
PEPSI
40
MIRINDA
30
50 SLICE
20
30 7 UP
10 20 20
MOUNTAIN DEW
0

OBSERVATION:- In the above diagram, it was found that many of persons like mostly
PEPSI due to its less fizzy test. SLICE is more preferable than MIRINDA in non carbonized
soft drinks and there is a balanced market of 7 UP and MOUNTAIN DEW.

MARKET SHARE OF PEPSI AGAINST RIVAL COCA COLA REPORT ON


MAY 2010

Market share of soft drinks giants Coca Cola and Pepsi by two different research agencies-ORG-
Marg and Indian market research bureau(IMRB).

According to IMBR which reveals that cock has in fact lost it market share from 52 percent to 48
percent while Pepsi gained from 43 percent to 47.30 percent during the month.

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SURVEY BY IMRB REPORT

47.30%
48%
PEPSI
COCA COLA

IMRB survey, which was conducted in cities, shows that Pepsi increased its market share from
43 percent to 47.3 percent in May.
Survey by ORG-Marg showed that coca cola garnered over 56 percent of the soft drinks market
in May in this year against arch rival Pepsi’s 40 percent.

 Figures from the survey conducted ORG-Marg, which was hired by Coco Cola, indicated
that Coke brands mustered 56.6 percent of the market in 23 cities where the survey was
conducted despite trailing in six cities. PepsiCo India on the other hand garnered 39.7
percent with its brand like Pepsi, mirinda, 7 Up, slice, mountain dew, it said.

Coca Cola brands, Coke, Fanta, Thums Up, and Mazza however trailed its rival in six cities
including Mumbai, Bangalore, Pune and Coimbatore, says the ORG-Marg survey.

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SURVEY BY ORG-MARG

40%

56% PEPSI
COCA COLA

MARKET SHARE OF PEPSI AGAINST ITS RIVAL COKE IN VARIOUS


CITIES

It goes on to reveal that PepsiCo cornered 51% of the Mumbai market (as against 47.4% of Coca
Cola), 50.5% of Bangalore (48.7% by Coke), 50.4% of Pune (49.4% by Coke) and 53.9% in
Coimbatore (as against 42% by Coke).

CITY PEPSI COCA COLA


Mumbai 51.7% 47.4%
Bangalore 50.5% 48.7%
Pune 50.4% 49.4%
Coimbatore 53.9% 42%
Delhi 49% 45%
Ranchi 49% 51%
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60.00%

50.00%

40.00%

30.00%
PEPSI
20.00%
COKE
10.00%

0.00%

In Delhi, Coke held lead over Pepsi by carving a market share of 51.2% as against 43.8% of its
rival, according to ORG-Marg survey. However, the IMRB survey claims that Coke’s market’s
share in Delhi was 49% against Pepsi’s 49%.
ORG-Marg said Coca Cola held market share of over 70% in cities like Amritsar, Hyderabad,
Ludhiana and Indore.

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7. SWOT ANALYSIS
OF
S.M.V BEVERAGES

SWOT analysis is the process of analyzing the company and environment in which it is
operating .This analysis helps in formulating effective strategies for the company to deal with
competition. SWOT stands for strengths, weaknesses, opportunities and threats.
Strengths and weakness are internal to the organization, whereas opportunities and threats are
external to the organization.
The strength of an organization can be its infrastructure, its employees. Its marketing team, its
latest product innovation, its international quality standards or even its closeness to the market.
The strength can be anything that adds value to its business.

The weakness of the organization can be incompetent, untrained employees, unevenly trained
sales force, poor marketing strategies, low quality products, or lack of proper financial
capabilities. These are some of the factors that may cause severe damage to the organization and
hamper its growth.

These are internal factors which have to be analyzed from time to time. An organization should
try to improve upon its strengths and reduce its weaknesses, in order to sustain in the market.

Opportunities and threats the factors external to the organization and they are critical for be
effective functioning. The opportunities of an organization can be a new potential market with
ample scope for growth, opportunities to have a collaborative advantage (Advantage through
strategic alliances and partnership), or opportunities to full fill the demand of a latent market.
Any such activity in the environment that helps the organization to grow is an opportunity for it.

The threats of an organization can be a new competitor in the market, price reduction in the
competitor’s product or a new product introduce in the market that will eat into the company’s
market share. These are some of the threats to an organization. The organization should
constantly keep a watchful eye on the market so that it can analyze the opportunities and threats
it is facing.

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STRENGTHS:
 S.M.V. Beverages is franchise owned Bottled operation (FOBO) of world’s most famous
soft drink giant Pepsi Co.

 S.M.V. Beverages uses state of the art and fully automatic machines and technology for
the product and bottling of soft drinks.

 It has a very strong distribution network and well built market and currently holds almost
all the parts of the state.

 It has a very wide product mix.

 It has muscular brand image.

WEAKNESS:

 Purity and quality of the products are estimated manually.

 Promotional activities in the rural market are not upon the mark as compared to the urban
market.

 It’s one of the popular brands PEPSI in cola flavor is lagging behind with its nearest
competitor only due to high sugar content and less thrilling taste.

 More emphasis is given to larger dealers.

 PEPSI has only cola flavor where its competitor has Coca-Cola has coke and Thumps-up.

 The sales promotion schemes do not reach the retailers.

 The price changed by the retailers is different from the print MRP.

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OPPORTUNITIES:
 It should give incentives to the dealers in the rural areas, where there is a huge market
potential.

 It should adopt automatic and computerized quality control system for its products.

 More lucrative schemes to be launched regularly, especially during off season. So as to


attach more and more customers.

 Apart from sponsoring films, cricket and music it should also sponsor to different fashion
shows, quizzes and debates in school and colleges.

 The consumption rate is high in Jharkhand.

 The present supply of all the flavours especially slice is not sufficient to fulfil the demand
during summer season, which may be trapped profitably.

 To take the help of CRM to get the competitive advantage over its competitors.

THREATS:
 One of the products of their competitor in the Cola segment has a very good share due to
its taste.

 Coca-Cola is spending more and more and more to boost up the scale, so S.V.M.
Beverages should also have to go ahead and think about it.

 The entry of new company products. Like (Coca-Cola) would make the market more
competitive.

 The distribution of Coca-Cola is very strong the outskirts of the city.

Threats from indigenous drinks like of sattu, lassi, sugarcane juice and other fruit juice
that apart from quenching thrist has nutritive value.

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8. FINDING

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Findings:

The collected data which were analyzed came out with the following
conclusions:-

 The selling of Pepsi product may be varying due to market condition, season fluctuations.

 The regular consumer of soft drinks is generally youth masses.

 Old age group persons don’t prefer cold drinks due to containing high amount of carbonic
acids.

 Large crowd of consumers are seen at college canteens, cinema halls, malls and railway
stations.

 Coca cola has a very good market share due to its taste.

 Coca cola has a great market share than Pepsi products.

 The number of Pepsi outlet is more than the number of competitor`s outlet at Jamshedpur
that results in increase in sale of PEPSI products.

 In the city like Jamshedpur, Pepsi products are reaching to every corner (remote areas
where not a single bottle of Coca-Cola can be seen) .

 All the areas in Jamshedpur, almost all the dealer are satisfied with the distribution
network of the PEPSI product.

 Most of the dealer want glow sign board and chilling equipment, which they are asking
for long time.
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 In Cola segment THUMPS-UP is the main competitor of PEPSI, in orange segment
FANTA is the main competitor of MIRINDA, in lime segment SPRITE is the main
competitor of 7UP and MOUNTAIN DUE, in mango segment MAZZA is the main
competitor of SLICE.

 Most of the consumer doesn`t like the taste of PEPSI due to its sweetness and ion fizz.

 Dealers are asking for the incentive and sales promotional schemes.

 Some dealers and retailer stops sailing PEPSI products because they are not satisfied with
the company, where Coca-Cola fulfil some of their demand and got the opportunity to
make exclusive counters for the soft drinks.

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9. CONCLUSION

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Conclusion:

The conclusion of this project report is that Pepsi and its products Co. are the
profitable MNC`s is not only in India but also in the whole world. Its main competitor is
Coca-Cola. In duopoly market Pepsi products has 65% market share .Pepsi cola Company
was found by CELEB BRADHAM in 1890 at North Carolina in USA. Now it is ranked 86th
(1998) in the world with the asset of around $25000 million, having it’s headquarter at
ATLANTA. Its CEO is INDIRA NOOYI and PepsiCo. India holding chairman is Mr.
RAJIV BAKSI. PepsiCo India`s HQ is at Gurgaon. Presently it is operating in 196
countries. In India it has 36 bottling plant of them 8 are COBO and 26 are FOBO which
one is Jamshedpur.

Pepsi today is one of the main sponsor`s related activities in India and has counted to
promote upcoming new players. It is estimated that PepsiCo franchisees generates Rs. 500
crores to the exchequer by the collection of excise duty and sales tax.

S.M.V Beverages was established in 1967 and production commenced in March 1969.At the
very outset the company-installed states are machines are states and technology, for the
production and bottling of soft drinks. The bottling plants with capacity to produce bottle
220 per minute is totally automatic. S.M.V Beverages Jamshedpur is proud of winning MU
Best Manufacturing Team Award 2005.Pepsi believes that “jo dikhta hai wo bikta hai”
that is product which is visible is bound to be sold.

At present S.M.V. BEVERAGES PVT. LTD. Manufactures Pepsi, Mirinda,7 up, Mountain
Dew, Slice and Soda Water in 200ml, 500ml, 1500ml and 2000ml range. S.V.M Beverages
Pvt. Ltd. “to generate more sales as well as create and maintain an image of its product”.

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10. SUGGESTION
AND
RECOMMENDATIONS

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Suggestion and recommendations

 Salesman should have good interaction with the dealer, which result company will
increase in sale.

 Customer executive should visit the counter on weakly basis.

 Executive should take the feedback from the dealers about the service of the salesman
and distributers.

 The entire Pepsi product should be display at one place so that customers could aware
about the different product of Pepsi.

 In the bus stand, railway, canteen, highway the CAN and PET bottle should be made
available every time because the public are busy there and the cannot wait.

 Regular visit of technicians is required to solve the problems of visi-cooler in the market
at the right time.

 No of vehicle should be increase for quick delivery of the products.

 More demand product like SLICE, 7 UP should always available in the stock warehouse.

 Size of warehouse should be increase for more bottle containing capacity.

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11. BIBLIOGRAPHY

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BOOKS:

Kotler,Phlip. “Marketing management” Prentice Hall of India, rdition-9th.

Drucker, Peter. “Management function and behavior” BPB, Edition-3rd.

Ramaswami, V.S and Namakumari,”Marketing management”.

Macmillion. Edition-2nd

ICFAI university press, “Marketing management”.

JOURNAL:
Singh, S.K. “A view across global marketing”. India journal of commerce, volume-54, Number-
1&2, January to June 2006.

India Management (All India Management Association, January 2006 issues.

WEB- SITES:
www.pepsico.yahoo.co.in

www.google.com

www.en.wikipedia.org

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12. ANNEXURE

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QUESTIONNAIRE:

Q.1 ASKED FROM OWN DEALER:


(About Jamshedpur Market)

1.1 What is the capacity of your warehouse?

1.2 How many vehicles you have for loading?

1.3 How many workers are working for your business?

1.4 What is the quantity of daily selling Pepsi product?

1.5 Have you any complaint against company?

……………………………………………………………………

1.6 Have you any suggestions for the company?

……………………………………………………………………

1.7 Have capacity to complete the target of the company?


…………………………………………………………………………………………………

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Q.2 ASKED FROM CUSTOMER:
NO.OF RESPONDENT=200

2.1 Do you like cold drinks?

2.2 If yes, which cold drinks you like most?

2.3 If no, why you do not like cold drinks?


…………………………………………………………………………………………………..

2.4 Are you regular drink cold drinks?

2.5 Which brand you like most either PEPSI or COCO COLA?

2.6 If Pepsi, why do you like Pepsi?


……………………………………………………………………………………………………

2.7 Which Pepsi flavour you like most?

2.8 If Coca Cola, why do you not like Pepsi?


…………………………………………………………………………………………………..
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2.9 Do you know the Pepsi product schemes?
……………………………………………………………………………………………………

2.10 Have you any suggestion for Pepsi products?


………………………………………………………………………………………………….

2.11 Have you any complaints against Pepsi products?


……………………………………………………………………………………………..

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