A STUDY ON

DISTRIBUTION AND PROMOTIONAL STRATEGIES

AT

PEPSICO INDIA
A Project Report submitted to the

OSMANIA UNIVERSITY, HYDERABAD

In Partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
BY
K . JITHENDHAR REDDY
(Regd.No:225617672053)
Under the esteemed guidance of
Mr.M.SRINIVAS
Asst. Professor,
DEPARTMENT OF MANAGEMENT

KGR INSTITUTE OF TECHNOLOGY &MANAGEMENT

RAMPALLI (Vill), KEESARA (Mdl), MEDCHAL (Dist).
2017-2019

i
CERTIFICATE FROM COMPANY

ii
CERTIFICATE FROM COLLEGE

iii
 DECLARATION

I, the undersigned, hereby declare that the project report entitled “A STUDY ON
DISTRIBUTION AND PRAMOTION STRAGIES OF PEPSI PRODUCTS” carried out at
“PEPSI INDIA “is my original work written and submitted by me in partial fulfillment of Master`s
Degree in Business Administration of Osmania University. I also declare that this project has not
been submitted earlier in any other university or institution.

Date: K. JITHENDHAR REDDY

iv
 ACKNOWLEDGEMENT

I take this opportunity to extend my profound thanks and deep sense of gratitude to the

authorities of PEPSI INDIAfor giving me the opportunity to undertake this project work in their

esteemed organization.

My sincere thanks to Honorable Chairman Sri K. GOVINDA REDDY principal Prof. P.V

RAMANA RAO and my project guide Mr.M.SRINIVAS for the kind encouragement and constant

support extended in completion of this project work. From the bottom of my heart

I am also thankful to all those who have incidentally helped me, through their valued

guidance, co-operation and unstinted support during the course of my project.

K. JITHENDHAR REDDY

v
 TABLE OF CONTENTS

S.NO CONTENTS Page no

CHAPTER-1

1.1 INTRODUCTION

1.2 Need of the study

1.3 Objective of the study

1.4 Methodology of the study

1.5 Scope of the study

1.6 Limitations of the study

CHAPTER-2

2.1 REVIEW OF LITERATURE

CHAPTER-3

3.1 INDUSTRY PROFILE

3.2 COMPANY PROFILE

CHAPTER-4

4.1 DATA ANALYSIS AND INTERPRETATION

CHAPTER-5

5.1 FINDINGS

5.2 SUGGESTIONS

5.3 CONCLUSION

5.4 BIBLIOGRAPHY

5.5 QUESTIONNARIES

vi
 ABSTRACT

Management is a course which teaches the student to get the work done properly from different
available sources viz. man, machine, material, money etc. So there can be a satisfaction from the
organization side and the workers side who play a significant role in achieving success. So far the
fulfillment or the management course, it gives emphasis to project work and students learn how to
plan in practical terms rather in terms of theory only. Student tends to develop analytical and
problem-solving skill. We necessary become motivated and competitive, in fact all the learning
that goes on for the two-year term become so much the part of our thinking that we developed a
well all rounded personality.

The following are the objectives and purpose of the study-

i) To care and contact with the working of an organization and to see the different
types of marketing activities. The main emphasis is on the distribution Channel
and promotion aspect of the organization.
ii) Whatever the subject taught in the class room of MBA course that is completely
theoretical. So during the training period we compare how the marketing research
(sales) activities (practical) of our organization with the theories.
iii) Find the depth and width of distribution channel adopted by Lumbini Beverages
Pvt. Ltd. Hyderabad and compare them with those followed by competitors.
iv) To ascertain the consumer brand perception of cold drinks with respect to price,
product, quantity and advertising.

vii
 CHAPTER – 1
INTRODUCTION

1
 INTRODUCTION TO THE STUDY

When Mr. Rajeev Gandhi came into the power as Prime Minister of India, then it was
expected the liberalization of Indian economy. This was the expectation of his modern concept
regarding every walk of life. When Pepsi has appealed on our collective consciousness of few
years ago to be more exact in April 1989. When it set up operation for beverages snack foods and
export business. The establishment of Multinational Company Pepsi was supposing to prediction
in present Indian business scenario.

Despite love for ones own motherhood and traditional concept of Indian people it was
assumed that it is very hard to make and create taste and preference about soft drinks but despite
of having so many confusion, no one was able to assume such a wide acceptance and it was
PepsiCo. Who could be able to penetrate in Indian soil and it was the Pepsi that has got not only a
place in Indian hospitality, but also taken place of traditional sharbat of lemon and sugar. And
needless to say “Generation next has become the slogan of the day.”

The first managing director was Mr. Ramesh Vanagal but present is Mr. P.M. Sinha in
India. During these years beverages begin an exclusively franchise operating beverages now has
five company owned bottling operation (COBO) the business expects to grow three times faster
than the industry growth rate 1995 and its vision is to become INDIA’S BEST CONSUMER
PRODUCT COMPANY in all aspect. The snacks business has seen some major success and going
for leadership too. Pepsi is a leader in the snacks food business. The division plans to introduction
wide range of snakes in to Indian market in the next three years. The restaurant business has also
come Kentucky Fried Chicken (KFC) has opened its first outlet at Bangalore Pizza but it also
expected to open restaurants shortly city wise. Whole of the operations of Pepsi in India has made
a rapid change in Indian life style, which is resulting in fast food life.

Pepsi is a world leader in restaurant & soft drink whether it is in London or in Ludhiyana,
America or Ahamedabad, Berlin or Bombay, Paris or Hyderabad, Manchester or Madras.

Pepsi company has pumped in Rs. 300 crores ($ 95 million) as fresh capital and has recently
received permission from the foreign investment board in Rs. 300 crores ($95 million) more. The
investment phase will continue and could add unto Rs. 700 crores over the next three years. The

2
figure is not cast in stone if volume exceeds according to expectation. They will increase capital
expenditure.

Apart from these things there is an expression which can not verify easily that is Pepsi has
made qualitative gains. The foremost is its image from being perennially seen as a loosing
company it’s now got the image of being a winner. This major turn around is not small achievement
considering that since it was established in 1989 taking the hard ship route prior to liberalization
and weighed down by export commitments. Pepsi has won more battles than it has lost.

In April 1993 Voltas and Punjab Argo’s stakes were bought over converting Pepsi foods from a
three way joint venture to be a fully owned subsidiary week bottlers who did not have the financial
capacities were given massive support in the form in interest free loans to upgrade their operating
capacity . But the strategy which has proved to be winner was the position, Pepsi decided to take
in Company Owned Bottling Operation (COBO). For this another subsidiary PepsiCo. India
holding was set up as an investment vehicle, capitalized 95 million dollar. Within a year 1994
Pepsi has bought over 5 bottlers including dukes in Mumbai, which was running in Maharastra
which has been bought over from Voltas high speed imported lines with a speed of 600 bottles per
minute was installed in Delhi. Pepsi has a strong franchisee in the Jaipuria’s of Pearl drinks. Pepsi
is setting up a new plant at Jaipur.

3
NEED OF THE STUDY

1. The need of the study is to help to the company to know the problems of retailers.

2. To know the satisfaction of the retailers about the distribution services.

3. To know the stock of both companies products maintaining by the different retailers.

4. To understand customers preferences towards the Soft drinks.

5. To understand the various services provided by the PepsiCo and Coca-Cola.

OBJECTIVE OF THE STUDY

Management is a course which teaches the student to get the work done properly from
different available sources viz. man, machine, material, money etc. So there can be a satisfaction
from the organization side and the workers side who play a significant role in achieving success.
So far the fulfillment or the management course, it gives emphasis to project work and students
learn how to plan in practical terms rather in terms of theory only. Student tends to develop
analytical and problem solving skill. We necessary become motivated and competitive, in fact all
the learning that goes on for the two year term become so much the part of our thinking that we
developed a well all rounded personality.

The following are the objectives and purpose of the study-

i) To care and contact with the working of an organization and to see the different
types of marketing activities. The main emphasis is on the distribution Channel and
promotion aspect of the organization.
ii) Whatever the subject taught in the class room of MBA course that is completely
theoretical. So during the training period we compare how the marketing research
(sales) activities (practical) of our organization with the theories.

4
 iii) Find the depth and width of distribution channel adopted by Lumbini Beverages
Pvt. Ltd. Hyderabad and compare them with those followed by competitors.
iv) To ascertain the consumer brand perception of cold drinks with respect to price,
product, quantity and advertising.

METHODOLOGY OF THE STUDY

“Marketing Research is the systematic designing, collection, analysis, and reporting of data
and finding relevant to a specific marketing situation facing the company.”

The present study of Soft drinks markets in all over Hyderabad is based on survey methods.
In survey methods, there are two types of survey. One is Census Method and another is Sampling
Method. In this sample survey methods I have taken only a small part of the whole and data
collected from the small part are made applicable to the whole i.e. I have taken Hyderabad and
some adjacent area of Hyderabad etc.

Within the time limit, I tried my best to select the sample representative of the whole group.
During my training, I maintained different chart for different routes during my dealer survey. I
have collected data from the distributor of Hyderabad.

Data Sources

Primary data collection involved distributors, retailers and consumers

Research Approaches : Survey

Research Instrument : Interview Schedule

Sampling Plan

Sampling Unit : Distributors Retailers Consumers

Sampling size : 02 350 1100

Sampling procedure : Purposive Selection

Contact Method : Personal Interview

5
 In interview schedule I used multiple choice question and ranking system questions.

SCOPE OF THE STUDY

The main scope of this study is to ascertain the effectiveness of distribution strategies and various
methods to increase the sales volume of the concern. The methods include regular information to
the buyers creating a brand position in the market and taking measures to make the brand remain
in its position. One of the important aspects of this study is also to increase the market segment for
the product

LIMITATION OF THE STUDY

i) Shortage of time factor was one of the biggest constraints.

ii) Most stress was given on the primary data as it was difficult to collect secondary
data from the organization and distribution since it is difficult to ascertain the
authenticity of their statements.
iii) All the observation and recommendation will be made on the feedback obtained
from survey.

PERIOD OF THE STUDY

The study was carried for a period of approximately 1 ½ months i.e. 45 days. In the report the
study of Blue ocean strategy of the company was analyzed and presented in the form of statements
and tables, accompanies by respective interpretations.

6
 CHAPTER-II

REVIEW OF LITERATURE

7
 HISTORY OF THE SOFT DRINK IN INDIA

Christopher Columbus as a traveler of world found a lot of new things which was not in the eye of
the world community which is now in our history but now if any one does travel to whole part of
world to get one thing in some form that is Pepsi. Travel to any corner of the globe you are sure to
spot a label splashed in blazing blue, red and white becoming you to some “Sugared water”. This
dark coloured drink WillyMilly has today become nothing but spot of an international anthem with
young and old, rich and poor wants for a sip and saying “Yeh Dil Mange More.”

Gold Spot is considered as the first branded soft drink established 53 years ago before all
empowering Pepsi entered the country to dominate the scene. It faced no competition and its
euphoric imaged built up in the western countries helped it to get ready clientele and glamour.
Parle Export Pvt. Ltd. is regarded as the first Indian company introducing Limca, a lemon drink
complimentary to there well established Gold Spot in 1970 which got moderate success. However,
before this, he had also introduced Cola Pepino which was withdrawn in face of tough competition
from Pepsi.

When Pepsi bid farewell in 1977, Indian market was open for various cold drinks several
companies came forward publishing the different brands in the market. Parle people introduced
their Cola Thumps Up with a mighty bang saying “Happy days are here again” as if happy days
went away with Pepsi.. Pure drinks of Delhi also without losing much time introduced pure drinks
were producing and marketing Pepsi earlier Campa Cola along with Campa orange and Campa
lemon. Modern Bakeries entered in the market with the Double Seven.

Moharnmeakings with Merry Pikup and McDowell with Thrill, Rush and Sprint in Indian market
where there was no competition previously. A cut throat competition and heavy advertising was
on. Each one was trying their best to become the number one company with ‘A’ class product in
the field of soft drink business in India.

Now after a long gape the govt. of India has given permission to the Pepsi to start their business
in India. Pepsi has joined hands with Parle to the business on the Indian soil. They are trying best
to regain its prestige which it has before.

8
The much rival of Parle is Pepsi an American concern. It started business the occupied nearly 50%
share of soft drinks market in India. Now, Pepsi is going all out to prove that they are the best.

HISTORY OF PEPSI

PepsiCo is a USA based company having its head quarters at New York with the net worth of $30-
40 million. The average sales of the company are approx 90 million bottles per month. Pepsi made it first
international move in Russia in 1959. During the Khrushchev era, within 32 years Pepsi emerged as the
biggest competitor for Pepsi. Pepsi is available in 155 countries.

In any soft drink, on the globe Pepsi food is one of the largest soft drink companies in the
world with its headquarters in New York. It was invented by Pharmacist Culab D. Baradham in 1898 to
cure the disease “Dyspepsia”. It is from this word that its name was related to Pepsi. Soon it entered the
American market as soft drink, which at that time mostly dominated by Pepsi, but soon Pepsi able to
dominate the Cola market, and there after it never looked back. Pepsi and Pepsi are engaged in ferocious
cola war that has taken the whole world by storm.

Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production in May 1990 and
soon it was giving the local contenders run for their money in soft drink market. It comes out with dazzling
marketing innovation that rocked the cola market, like selling the product through function Pepsi outlets.
Its advertisement agency was “Hindustan Thomson Association” (HTA). Its advertisement budget for 1995-
1996 was valued at Rs. 24 crores which is likely to be increased manifold in coming years.

Pepsi food is one of the largest and best foreign investments in India. Till today it has invested Rs.
500 crores in India to develop the local market. Pepsi has distributed exclusive franchises in India to bottle
its total product. There are 28 bottling plant of Pepsi in India. Some are directly controlled by Pepsi and
rest is under various franchisees.

Pepsi stands 51st position among the fortune 500 companies of the world. Its total capital is approx
$3000 crores and total sales annually is worth $37 crores. Its total profit in the year 1996-97 was worth Rs.
458 crores approx. The total number of employees engaged in the business is 45.25 lakhs globally.

In April 1997 the Pepsi cola international decided that Steel City Beverage will cover south
Telangana (now Muzaffarpur) only. In this accordance Pepsi cola international decided to open another
bottling plant at Hyderabad named Lumbini Beverages Pvt. Ltd. Hyderabad which will distribute Pepsi

9
product in whole Telangana. Ananda Marketing as a marketing division of Lumbini Beverages Pvt. Ltd.
Hyderabad started functioning in April 1997; Managing Director of Lumbini Beverages Pvt. Ltd.
Hyderabad is Mr. CharanKhelani. The director of this organization Mr. Ravi Khelani and Mr.
ManojKhelani

PRODUCTION PROCESS

The process of manufacture of Aerated water (soft drink) like Pepsi brand product is
divided into mainly five parts such as

1. Water Treatment
2. Syrup Making
3. Bottle Washing
4. Filling
5. Testing of Product
(1) Water Treatment: - Water treatment is very essential in soft drinks plants as the nature
and quality of water varies from place to place. To set uniform and standard water the
process of treatment is carried on. The water taken out from bore well by the help of motor
pump and pipe line are collected in storage tank where is pre chlorinated by chlorinators
and by the help of pipe lines comes to treatment tank called coagulation tank where to this
water solutions of different strength of bleaching powder, ferrous sulphate, hydrated lime
are added through dosing pump to reduce alkalinity, hardness, kill the bacteria .The
chemical are mixed by mechanical stripper and then the suspend mattress settle down as
sludge and clear water passes to retention tank. From this tank, the water passes through
sand filter containing fine sand and pebbles and carbon filter containing granular carbon
and finely through water polisher, micron filter, and UV lamp to ensure clear and sanitary
water for use. Further water used in bottle washer and boiler need softening .for this
purpose ,the water from storage tank ,after passing through two filter beds contain fine
sand and granular carbon respectively comes to pass through bad resin were it is softened
.this soft water is essential to use in and bottle washer to reduce scale formation inside the
machines.
(2) Syrup Making:- For syrup making of particular brand, calculate quantity of sugar water
activated carbon and high flow super cell known as filter aid taken in to sugar to enter
10
 steam and also filled by a motor with agitator. Sugar syrup called raw-syrup is prepared
by dissolving the sugar with continuous stirring and heating by steam supplied by fired
boiler. This hot syrup by the help of pump is filtered through a filter press attached with a
series of quality filter paper to separate out carbon particles. Clear hot syrup by the help
of SS pipe lines passes through water P.H.E. for cooling and the then another P.H.E.
circulated by glycol for further cooling. The chilled syrup comes to a mixing tank to use
calculating of sugar quantity by Brix Hydrometer, concentrate added and mix thoroughly
by a mechanical Stirrer fitted to the tank. This syrup is now finished syrup ready for use.
The concentrate mainly, the liquid part are kept in a cold store, the temperature of finished
syrup is also maintained by air-conditioner. All the containers used for syrup making are
cleaned and sanitized by Soda-Bi-Crab, strong chlorine solution and hot caustic soda
solution.
(3) Bottle Washing:Bottle washing is an important part in soft drink plant. The empty durable
and returnable bottle used are returned from market in plastic carats are fed to a bottle
washing machine (washer). The machine has double end system with circular chain to
carry the bottles. Caustic soda Tri-Sodium Phosphate, Sodium Glausonate is adding to the
caustic by the supplied. The Caustic tank filled in with water heated by steam supplied by
the boiler. The empty bottles enter to the hot Caustic tank in one end and after being
cleaned by hot Caustic solution and finally washed with water through spray jets fitted are
discharged in other end. The washed bottle proper inspections are SU 319 and SU 853
used for conveyor cleaned and smooth running of chain carrying bottles. SU 260 and SU
773 is used for bottle cleaning, shining, and mold removing.

(4) Filling: - Finished syrup and treated water lime are commixed to a dosing pump which
mixes syrup and water with ratio of 1:5 and the syrup mixed with water enters to
carbonator tank to mix CO2 gas, which is preserved in cylinder for use. The cylinders are
connected through CO2 manifold to tank to use requisite quantity of gas. To control CO2
pressure and temperature of liquid; we used recording control (Taylor). The syrup passed
11
 through a P.H.E. which is called itself by circulation of chilled glycol supplied chilling F-
22 gas used. The syrup being chilled easily mixed with CO2 gas and enters to filter for
bottling. The filter is connected with filling valves and lift cylinders. The lift cylinder
functions by pressure of air supplied by an air composer. The syrup is known as beverage
in this stage is filled in the cleaned bottles which are durable in nature and returnable by
buyer filling machine (filter) by a counter pressure of carbon dioxide gas. After beverage
filled in bottle it goes to the crowner where with the help of crown crocks the bottles are
sealed (crowned) to project the carbonation, flavor, outside contamination and spoilage.
The finished products are coded by a coding machine and inspected properly by inspection
light while passing through the conveyor where finished product are accumulated enters
to carat washer machine and it is washed moves through the conveyor where finished
product are accumulated.
Then the products are kept in plastic carats which are durable in nature and returnable by
buyer, put on palates and sent to shipping for shipment. The entire container in contact
with syrup are properly cleaned and sanitized by Soda-Bi-Carbonate, hot water, caustic
soda solution and strong chlorine does.

(5) Testing of product:-Finally the finished syrup during bottle is tested in laboratory to meet
the parameters and also to get a standard and quality products to maintain the standard and
information and uniformity in products the sugar contents and carbonation in the bottle
are checked in regular intervals by Brix-hydrometers, Refrectometer and pressure gauge.
The dead weight tested is used to calculate pressure gauge to know the correct pressure.
TA & Ph are tested by digital Ph meter. Electronic digital balanced is used to weight
chemical to conduct test in lab. The purity of CO2 is checked by CO2 purity tester. The
chlorine comparators. The microbiology test of the product and water used in syrup
making and production are also done to ensure that the product is free from any
bacteriological contamination. To conduct the micro test hot sterilizer incubator,
autoclave, pads filter membranes, media are produced and used.

The Diesel generator is operated in case of electricity failure for smooth operation
of the plant. To drawn electricity for the State Electricity Board the transformer is used.

The steps involved in the production process are:-

12
 First the fork lift supplies the empty bottles which are collected from the
distributions.
 Then depalletising is done i.e. separating cases filled or empty bottles from the
wooden planks.
 Uncasing is done by separating empty bottles from the cases/carats.
 Empty bottles are then fed into the bottle washer where stream with some chemical
is used for washing.
 Washed bottles are then send to the filler where premix (Composed of syrup, treated
water bulk CO2) is filled in it.
 The whole concentrated is chilled with glycol before filling and then crowning is
done.
 The filled bottles are passed through inkjet coder for printing price and date.
 Then again the filled bottles are send for final light inspection and from there they
are collected on a table.
 Lastly the filled bottles are arranged in the crates (casing) and then palletizing is
done for storing it in the warehouse.

PREPARATION OF SYRUP

Treated water + Sugar = Flavor

13
PRODUCT MANUFACTURED

The product manufactured by “Lumbini Beverages Pvt. Ltd. are very limited ranges as it is not independent
to diversity its products. It is a unit of Pepsi food Pvt. Ltd. which supplies concentrates for drinks. They
are:-

Products Quantity Colour Flavour

Pepsi 300 ml, 200ml Brunt sugar Cola

Mirinda 300 ml, 200ml Sun-set Orange

Mirinda 300 ml, 200ml Tetrazine Lime

Mirinda 300 ml, 200ml Tetrazine Mango

7 Up 300 ml, 200ml Colorless Lemon

Mountain Dew 300 ml, 200ml Colorless Lemon

Slice 300 ml Sunset Mango

Lehar soda 300 ml Tetrazine Lemon

Pet 1.5 lt. Brunt sugar Cola

Pet 2 lt. Brunt sugar Cola

Can 330 ml Brunt sugar Cola

Aquafina 1 lt. Colorless White

(Mineral Water)

14
CONSUMERS

The main consumers of these products naturally are youth. Besides the direct consumer it is also
used for the some purpose of providing it to the mass by hoteliers, restaurant owners and various other soft
drink peddlers. These products are the choice of the new generation. Thus it can be said that it is a product
of mass consumption.

THEORETICAL FRAME WORK OF DISTRIBUTION

STRATEGIES
“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 distribution strategies 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 circumstance. Even though many
variation of specific objective fits into some categories. These are as follows:-

 To built distribution network loyalty

 To stimulate distribution

15
  To develop managerial efficiency in distribution organization
 To identify the source of supply for the product line at the final buyers level

The distribution strategies 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 distribution strategies 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.

The important of middlemen in distribution strategies can be over emphasized. It is that who-

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.

16
 CHAPTER – 3
COMPANY PROFILE

17
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered
in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the manufacturing,
marketing, and distribution of grain-based snack foods, beverages, and other products. PepsiCo
was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has
since expanded from its namesake product Pepsi to a broader range of food and beverage brands,
the largest of which included an acquisition of Tropicana Products in 1998 and the Quaker Oats
Company in 2001, which added the Gatorade brand to its portfolio.

As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion
apiece, and the company's products were distributed across more than 200 countries, resulting in
annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food and
beverage business in the world. Within North America, PepsiCo is the largest food and beverage
business by net revenue. Ramon Laguarta has been the chief executive of PepsiCo since 2018. The
company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed
bottlers in certain regions

The recipe for the soft drink Pepsi was first developed in the 1880s by Caleb Bradham, a
pharmacist and industrialist from New Bern, North Carolina. He coined the name "Pepsi-Cola" in
1898. As the cola developed in popularity, he created the Pepsi-Cola Company in 1902 and
registered a patent for his recipe in 1903. The Pepsi-Cola Company was first incorporated in the
state of Delaware in 1919. The company went bankrupt in 1931 and on June 8 of that year, the
trademark and syrup recipe were purchased by Charles Guth, who owned a syrup manufacturing
business in Baltimore. Guth was also the president of Loft, Incorporated, a leading candy
manufacturer, and he used the company's labs and chemists to reformulate the syrup. He further
contracted to stock the soda in Loft's large chain of candy shops and restaurants, which were known
for their soda fountains, used Loft resources to promote Pepsi, and moved the soda company to a
location close by Loft's own facilities in New York City. In 1935, the shareholders of Loft sued
Guth for his 91% stake of Pepsi-Cola Company in the landmark case Guth v. Loft Inc. Loft won
the suit and on May 29, 1941 formally absorbed Pepsi into Loft, which was then re-branded as
Pepsi-Cola Company that same year. Loft restaurants and candy stores were spun off at this time.
In the early 1960s, Pepsi-Cola's product lines expanded with the creation of Diet Pepsi and
purchase of Mountain Dew.

18
In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc. At the
time of its foundation, PepsiCo was incorporated in the state of Delaware and headquartered in
Manhattan, New York. The company's headquarters were relocated to the present location of
Purchase, New York in 1970, and in 1986 PepsiCo was reincorporated in the state of North
Carolina. After 39 years trading on the NYSE, PepsiCo moved its shares to Nasdaq on December
20, 2017.

Acquisitions and divestments

Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses
outside of its core focus of packaged food and beverage brands; however it exited these non-core
business lines largely in 1997, selling some, and spinning off others into a new company named
Tricon Global Restaurants, which later became known as Yum! Brands, Inc. PepsiCo also
previously owned several other brands that it later sold so it could focus on its primary snack
food and beverage lines, according to investment analysts reporting on the divestments in 1997.
Brands formerly owned by PepsiCo include: Pizza Hut,[9]Taco Bell, KFC, Hot 'n Now, East Side
Mario's, D'Angelo Sandwich Shops, Chevys Fresh Mex, California Pizza Kitchen, Stolichnaya
(via licensed agreement), Wilson Sporting Goods, and North American Van Lines.

The divestments concluding in 1997 were followed by multiple large-scale acquisitions, as

PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of foods
and beverages. PepsiCo purchased the orange juice company Tropicana Products in 1998, and
merged with Quaker Oats Company in 2001, adding with it the Gatorade sports drink line and
other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima, among others.

In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its products
in North America: Pepsi Bottling Group and PepsiAmericas. In 2010 this acquisition was
completed, resulting in the formation of a new wholly owned subsidiary of PepsiCo, Pepsi
Beverages Company. In February 2011, the company made its largest international acquisition by
purchasing a two-thirds (majority) stake in Wimm-Bill-Dann Foods, a Russian food company that
produces milk, yogurt, fruit juices, and dairy products.[21] When it acquired the remaining 23%

19
stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest food and beverage
company in Russia.

In July 2012, PepsiCo announced a joint venture with the Theo Muller Group which was named
Muller Quaker Dairy. This marked PepsiCo's first entry into the dairy space in the U.S. The joint
venture was dissolved in December 2015.

On May 25, 2018, PepsiCo announced that it would acquire fruit and veggie snack maker Bare
Foods. It will also quarter-own all Motti in late November 2018 and it will be PepsiCo's first
owned Tech and Computer Service company.

On August 20, 2018, PepsiCo announce that it had entered into agreement to acquire
SodaStream. The purchase is expected to close by January 2019 as part of a strategic plan to
steer Pepsi toward offering healthier products.

Competition

The Coca-Cola Company has historically been considered PepsiCo's primary competitor in the
beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market
value for the first time in 112 years since both companies began to compete. In 2009, The Coca-
Cola Company held a higher market share in carbonated soft drink sales within the U.S. In the
same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however,
reflecting the differences in product lines between the two companies. As a result of mergers,
acquisitions, and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted
to include a broader product base, including foods, snacks, and beverages. The majority of
PepsiCo's revenues no longer come from the production and sale of carbonated soft drinks.
Beverages accounted for less than 50 percent of its total revenue in 2009. In the same year, slightly
more than 60 percent of PepsiCo's beverage sales came from its primary non-carbonated brands,
namely Gatorade and Tropicana.

PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market,
accounting for approximately 39 percent of U.S. snack food sales in 2009. One of PepsiCo's
primary competitors in the snack food market overall is Kraft Foods, which in the same year held

20
11 percent of the U.S. snack market share. Other competitors for soda are RC Cola, Cola Turka,
Kola Real, Inca Kola, Zamzam Cola, Mecca-Cola, Virgin Cola, Qibla Cola, Evoca Cola, Corsica
Cola, Breizh Cola, and Afri Cola.

Soviet Union

In 1959, the USSR held an exhibition of Soviet technology and culture in New York. The United
States reciprocated with an exhibition in Sokolniki Park, Moscow, which led to the famous kitchen
debate. One of the American products exhibited was Pepsi Cola. After obtaining a photo of U.S.
President Richard Nixon and Soviet Premier Nikita Khrushchev sipping Pepsi, Pepsico executive
Donald Kendall was able to capture the attention of the Soviet people and, in 1972, negotiate a
cola monopoly in the USSR. Due to Soviet restrictions on transporting rubles abroad, PepsiCo
struck a barter deal whereby Stolichnaya vodka would be exchanged for Pepsi syrup. This deal
lasted until 1990, when the USSR and PepsiCo re-negotiated to exchange syrup for vodka and a
small fleet of Soviet warships including 17 submarines, a frigate, a cruiser and a destroyer.

Finances

For the fiscal year 2017, PepsiCo reported earnings of US$4.857 billion, with an annual revenue
of US$62.525 billion, an increase of 1.2% over the previous fiscal cycle. PepsiCo's shares traded
at over $109 per share, and its market capitalization was valued at over US$155.9 billion in
September 2018. PepsiCo ranked No. 45 on the 2018 Fortune 500 list of the largest United States
corporations by total revenue.

21
 Revenue Net income Total Assets
Year Employees
in mil. USD$ in mil. USD$ in mil. USD$

2005 32,562 4,060 31,727 210,000

2006 35,137 5,631 29,930 220,000

2007 39,474 5,646 34,628 230,000

2008 43,251 5,134 35,994 240,000

2009 43,232 5,940 39,848 250,000

2010 57,838 6,314 68,153 260,000

2011 66,504 6,436 72,882 270,000

2012 65,492 6,171 74,638 272,000

2013 66,415 6,740 77,478 274,000

2014 66,683 6,503 70,509 271,000

2015 63,056 5,452 69,667 263,000

2016 62,799 6,329 73,490 264,000

2017 63,525 4,857 79,804 263,000

2018 64,256 5,215 78,546 256,000

PepsiCo's product mix as of 2015 (based on worldwide net revenue) consists of 53 percent foods,
and 47 percent beverages. On a worldwide basis, the company's current products lines include
several hundred brands that in 2009 were estimated to have generated approximately $108 billion
in cumulative annual retail sales.

22
The primary identifier of a food and beverage industry main brand is annual sales over $1 billion.
As of 2015, 22 PepsiCo brands met that mark, including: Pepsi, Diet Pepsi, Mountain Dew, Lay's,
Gatorade, Tropicana, 7 Up, Doritos, Brisk, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina,
Naked, Kevita, Propel, Sobe, H2oh, Sabra, Starbucks (ready to Drink Beverages), Pepsi Max,
Tostitos, Mist Twst, Fritos, and Walkers.

Business divisions

The structure of PepsiCo's global operations has shifted multiple times in its history as a result of
international expansion, and as of 2016 it is separated into six main divisions: North America
Beverages, Frito-Lay North America, Quaker Foods North America, Latin America, Europe and
Sub-Saharan African, and Asia, Middle East and North Africa. As of 2015, 73 percent of the
company's net revenues came from North and South America; 17 percent from Europe and Sub-
Saharan Africa; and 10 percent from Asia, the Middle East, and Africa. PepsiCo and its combined
subsidiaries employed approximately 263,000 people worldwide as of December 2015.

North America Beverages

This division contributed 33 percent of PepsiCo's net revenue as of 2015, and involves the
manufacture (and in some cases licensing), marketing and sales of both carbonated and non-
carbonated beverages in North America. The main brands distributed under this division include
Pepsi, Mountain Dew, Gatorade, 7 Up (outside the U.S.), Tropicana Pure Premium orange juice,
Mist Twst, SoBeLifewater, Tropicana juice drinks, AMP Energy, Naked Juice, and Izze. Aquafina,
the company's bottled water brand, is also marketed and licensed through North America
Beverages. In 2015, PepsiCo also introduced Stubborn Soda, a line of carbonated beverages
without high fructose corn syrup.

PepsiCo also has formed partnerships with several beverage brands it does not own, in order to
distribute or market them with its own brands. As of 2010, its partnerships include: Starbucks
(Frappuccino, DoubleShot, and Iced Coffee), Unilever's Lipton brand (Lipton Brisk and Lipton
Iced Tea), and Dole (licensed juices and drinks).

23
Frito-Lay North America

Frito-Lay North America, the result of a merger in 1961 between the Frito Company and the H.W.
Lay Company, produces the top selling line of snack foods in the U.S. Its main brands in the U.S.,
Canada, and Mexico and include Lay's and Ruffles potato chips; Doritos tortilla chips; Tostitos
tortilla chips and dips; Cheetos cheese flavored snacks; Fritos corn chips; Rold Gold pretzels; Sun
Chips; and Cracker Jack popcorn. Products made by this division are sold to independent
distributors and retailers, and are transported from Frito-Lay's manufacturing plants to distribution
centers, principally in vehicles owned and operated by the company.

The division contributed 23 percent of PepsiCo's net revenue in 2015. Until November 2009,
Christopher Furman, President of Ventura Foods Inc., occupied the position of Food Services
CEO.

Quaker Foods North America

Quaker Foods North America, created following PepsiCo's acquisition of the Quaker Oats
Company in 2001, manufactures, markets, and sells Quaker Oatmeal, Rice-A-Roni, Cap'n Crunch,
and Life cereals, as well as Near East side dishes within North America. This division also owns
and produces the Aunt Jemima brand, which as of 2009 was the top selling line of syrups and
pancake mixes within this region.

Sabritas and Gamesa are two of PepsiCo's food and snack business lines headquartered in Mexico,
and they were acquired by PepsiCo in 1966 and 1990, respectively. Sabritas markets Frito-Lay
products in Mexico, including local brands such as Poffets, Rancheritos, Crujitos, and Sabritones.
Gamesa is the largest manufacturer of cookies in Mexico, distributing brands such as Emperador,
Arcoiris and Marías Gamesa.

The division contributed 4 percent of PepsiCo's net revenues in 2015.

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Latin America

PepsiCo's Latin America Foods (Spanish: Snacks América Latina) operations market and sell
primarily Quaker- and Frito-Lay-branded snack foods within Central and South America,
including Argentina, Brazil, Peru, and other countries in this region.[52] Snacks América Latina
purchased Peruvian company Karinto S.A.C. including its production company
BocaditasNacionales (with three production facilities in Peru) from the Hayashida family of Lima
in 2009, adding the Karito brand to its product line, including Cuates, Fripapas, and Papi Frits.

The company started a new market strategy to sell its Pepsi Cola product in Mexico, stating that
about one third of the population has difficulty pronouncing "Pepsi". With manufacture and sales
of its product under the label 'Pécsi', the advertisement campaign features the Mexican soccer
celebrity Cuauhtémoc Blanco. In 2009, PepsiCo had previously used the same strategy
successfully in Argentina.

Pepsico will market and distribute Starbucks products in several Latin American countries for
2016.

The division contributed 13 percent of PepsiCo's net revenues in 2015.

Europe and Sub-Saharan Africa

PepsiCo began to expand its distribution in Europe in the 1980s, and in 2015 it made up 17 percent
of the company's global net revenue. Unlike PepsiCo's Americas business segments, both foods
and beverages are manufactured and marketed under one umbrella division in this region, known
as PepsiCo Europe. The primary brands sold by PepsiCo in Europe include Pepsi-Cola beverages,
Frito-Lay snacks, Tropicana juices, and Quaker food products, as well as regional brands unique
to Europe such as Walkers crisps, Copella, Paw Ridge, Snack-a-Jack, Duyvis, and others. PepsiCo
also produces and distributes the soft drink 7UP in Europe via license agreement. Pepsico has 3
sites in South Africa (Isando, Parrow, and Prospecton) which produce Lay's and Simba chips.

25
PepsiCo's European presence expanded in Russia in 2009 as the company announced a $1B
investment, and with its acquisition of Russian juice and dairy product brand Wimm-Bill-Dann
Foods in December 2010 and Lebedyansky juice producer in March 2008.

According to the Reuters, "PepsiCo reported that in 2017, its Russian operations generated net
revenue of $3.23 billion, which made up 5.1 percent of the company’s total net revenue."

Asia, Middle East and North Africa

The most recently created operating division of PepsiCo covers Asia, the Middle East and Africa.
In addition to the production and sales of several worldwide Pepsi-Cola, Quaker Foods, and Frito-
Lay beverage and food product lines (including Pepsi and Doritos), this segment of PepsiCo's
business markets regional brands such as Mirinda, Kurkure, and Red Rock Deli, among others.[45]
While PepsiCo owns its own manufacturing and distribution facilities in certain parts of these
regions, more of this production is conducted via alternate means such as licensing (which it does
with Aquafina), contract manufacturing, joint ventures, and affiliate operations. PepsiCo's
businesses in these regions, as of 2015, contributed 10 percent to the company's net revenue
worldwide.

In August 2012, PepsiCo signed an agreement with a local Myanmar distributor to sell its soft
drinks after a 15-year break to re-enter the country.

SodaStream, which PepsiCo acquired in 2018 is based in Israel, while Sabra (which PepsiCo co-
owns with the Israeli food conglomerate Strauss Group) holds a 60% market share for hummus
sales in the United States as of 2015. The Strauss Group produces and distributes Frito-Lay
products in Israel.

Corporate governance

Headquartered in Harrison, New York, in the hamlet of Purchase, with research and development
headquarters in Valhalla, New York, PepsiCo's Chairman and CEO is Ramon Laguarta. The board
of directors is composed of eleven outside directors as of 2010, including Ray Lee Hunt, Shona
Brown, Victor Dzau, Arthur C. Martinez, Sharon Percy Rockefeller, Daniel Vasella, Dina Dublon,

26
Ian M. Cook, Alberto Ibargüen, and Lloyd G. Trotter. Former top executives at PepsiCo include
Steven Reinemund, Roger Enrico, D. Wayne Calloway, John Sculley, Michael H. Jordan, Donald
M. Kendall, Christopher A. Sinclair, Irene Rosenfeld, David C. Novak, Brenda C. Barnes, and
Alfred Steele.

On October 1, 2006, former Chief Financial Officer and President Indra Nooyi replaced Steve
Reinemund as Chief Executive Officer. Nooyi remained as the corporation's president, and became
Chairman of the Board in May 2007, later (in 2010) being named No.1 on Fortune's list of the "50
Most Powerful Women" and No.6 on Forbes' list of the "World's 100 Most Powerful Women".
PepsiCo received a 100 percent rating on the Corporate Equality Index released by the LGBT-
advocate group Human Rights Campaign starting in 2004, the third year of the report.

In November 2014, the firm's president Zein Abdalla announced he would be stepping down
from his position at the firm by the end of 2014.

In 2017, Ramon Laguarta became the president and became its CEO in 2018.

Headquarters

The PepsiCo headquarters are located in the hamlet of Purchase, New York, in the town and village
of Harrison, New York. It was one of the last architectural works by Edward Durell Stone. It
consists of seven three-story buildings. Each building is connected to its neighbor through a corner.
The property includes the Donald M. Kendall Sculpture Gardens with 45 contemporary sculptures
open to the public. Works include those of Alexander Calder, Henry Moore, and Auguste Rodin.
Westchester Magazine stated "The buildings' square blocks rise from the ground into low, inverted
ziggurats, with each of the three floors having strips of dark windows; patterned pre-cast concrete
panels add texture to the exterior surfaces." In 2010 the magazine ranked the building as one of
the ten most beautiful buildings in Westchester County.

At one time, PepsiCo had its headquarters in 500 Park Avenue in Midtown Manhattan, New York
City. In 1956 PepsiCo paid $2 million for the original building. PepsiCo built the new 500 Park
Avenue in 1960. In 1966, Mayor of New York CityJohn Lindsay started a private campaign to
convince PepsiCo to remain in New York City. Six months later, the company announced that it

27
was moving to 112 acres (45 ha) of the Blind Brook Polo Club in Westchester County. After
PepsiCo left the Manhattan building, it became known as the Olivetti Building.

Charitable activities

Headquarters of Pepsi-Cola Venezuela (ES)

PepsiCo has maintained a philanthropic program since 1962 called the PepsiCo Foundation, in
which it primarily funds "nutrition and activity, safe water and water usage efficiencies, and
education," according to the foundation's website. In 2009, $27.9 million was contributed through
this foundation, including grants to the United Way and YMCA, among others.

In 2009, PepsiCo launched an initiative called the Pepsi Refresh Project, in which individuals
submit and vote on charitable and nonprofit collaborations. The main recipients of grants as part
of the refresh project are community organizations with a local focus and nonprofit organizations,
such as a high school in Michigan that—as a result of being selected in 2010—received $250,000
towards construction of a fitness room. Following the Gulf of Mexico oil spill in the spring of
2010, PepsiCo donated $1.3 million to grant winners determined by popular vote. As of October
2010, the company had provided a cumulative total of $11.7 million in funding, spread across 287
ideas of participant projects from 203 cities in North America. In late 2010, the refresh project was
reported to be expanding to include countries outside of North America in 2011.

Environmental record and product nutrition

According to its 2009 annual report, PepsiCo states that it is "committed to delivering sustainable
growth by investing in a healthier future for people and our planet," which it has defined in its
mission statement since 2006 as "Performance with Purpose". According to news and magazine

28
coverage on the subject in 2010, the objective of this initiative is to increase the number and variety
of healthier food and beverage products made available to its customers, employ a reduction in the
company's environmental impact, and to facilitate diversity and healthy lifestyles within its
employee base. Its activities in regards to the pursuit of its goals—namely environmental impacts
of production and the nutritional composition of its products—have been the subject of recognition
from health and environmental advocates and organizations, and at times have raised concerns
among its critics. As the result of a more recent focus on such efforts, "critics consider (PepsiCo)
to be perhaps the most proactive and progressive of the food companies", according to former New
York Times food industry writer Melanie Warner in 2010.

Environmental record

Rainforests and palm oil

PepsiCo Palm Oil Commitments published in May 2014 were welcomed by media as a positive
step towards ensuring that the company's palm oil purchases will not contribute to deforestation
and human rights abuses in the palm oil industry. NGOs warned that the commitments did not go
far enough, and in light of the deforestation crisis in Southeast Asia, have called on the company
to close the gaps in its policies immediately.

Genetically Modified Food Ingredients

PepsiCo has contributed $1,716,300 to oppose the passage of California Proposition 37, which
would mandate the disclosure of genetically modified crops used in the production of California
food products. PepsiCo believes "that genetically-modified products can play a role in generating
positive economic, social and environmental contributions to societies around the world;
particularly in times of food shortages."

Water usage (India, U.S., U.K.)

PepsiCo's usage of water was the subject of controversy in India in the early and mid-2000s, in
part because of the company's alleged impact on water usage in a country where water shortages
are a perennial issue. In this setting, PepsiCo was perceived by India-based environmental

29
organizations as a company that diverted water to manufacture a discretionary product, making it
a target for critics at the time.

As a result, in 2003 PepsiCo launched a country-wide program to achieve a "positive water

balance" in India by 2009. In 2007, PepsiCo's CEO Indra Nooyi made a trip to India to address
water usage practices in the country, prompting prior critic Sunita Narain, director of the Centre
for Science & Environment (CSE), to note that PepsiCo "seem(s) to be doing something serious
about water now." According to the company's 2009 corporate citizenship report, as well as media
reports at the time, the company (in 2009) replenished nearly six billion liters of water within India,
exceeding the aggregate water intake of approximately five billion liters by PepsiCo's India
manufacturing facilities.

Water usage concerns have arisen at times in other countries where PepsiCo operates. In the U.S.,
water shortages in certain regions resulted in increased scrutiny on the company's production
facilities, which were cited in media reports as being among the largest water users in cities facing
drought—such as Atlanta, Georgia. In response, the company formed partnerships with non-profit
organizations such as the Earth Institute and Water.org, and in 2009 began cleaning new Gatorade
bottles with purified air instead of rinsing with water, among other water conservation practices.
In the United Kingdom, also in response to regional drought conditions, PepsiCo snacks brand
Walkers' reduced water usage at its largest potato chip facility by 45 percent between the years
2001 and 2008. In doing so, the factory used machinery that captured water naturally contained in
potatoes, and used it to offset the need for outside water.

As a result of water reduction practices and efficiency improvements, PepsiCo in 2009 saved
more than 12 billion liters of water worldwide, compared to its 2006 water usage. Environmental
advocacy organizations including the Natural Resources Defense Council and individual critics
such as Rocky Anderson (mayor of Salt Lake City, Utah) voiced concerns in 2009, noting that
the company could conserve additional water by refraining from the production of discretionary
products such as Aquafina. The company maintained its positioning of bottled water as "healthy
and convenient", while also beginning to partially offset environmental impacts of such products
through alternate means, including packaging weight reduction

30
 DECISION MAKING FOR DISTRIBUTION STRATEGIES

The marketing executive must undertake to following steps in order to establish the
distribution strategies 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

Customer Marketing Channels

Channel 1. Manufacturer………………………………………………..…Consumer

Channel 2. Manufacturer……………Retailer……………………………Consumer

Channel 3. Manufacturer……...Wholesaler………….Retailer…………Consumer

Channel 4. Manufacture…….Wholesaler……Jobber……Retailer…….Consumer

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 CHANNEL DYNAMICS

Distribution channel do not stand still. New wholesaling and retailing institution emerge
and new channel system evolves. There are four types of marketing channels.

1. Conventional Distribution Channel

A Channel consist one or more independent wholesaler and retailers. Each is a separate
business seeking to maximize its own profits even if this goal reduces profit for the system
as a whole. No. of channel members has complete or substantial control over the other
members.

2. Vertical Marketing Channel

This is most recent marketing channel. A distribution channel system as producers,
wholesaler and retailers act as unified systems. One channel member, the channel captain
owns the others or franchises them or has so much power that they all co-operate. The
channel captain can be the producer, the wholesaler or the retailer.

3. Horizontal Marketing Channel

A distribution channel system in which two or more unrelated companies put together
resources or programmes to exploit an emerging marketing opportunity.

4. Multi Channel Marketing

In the past, many companies sold to single market through a single channel. Multi channel
marketing occurs when a single firm uses two or more marketing channels to reach one or
more customer segments.

32
 RETAILING

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.

33
 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 ( Wholesale clubs )

PROMOTION STRATEGIES

Getting shelves

They gets or purchase shelves in big departmental stores and display their products in that shelves
in that style which show their product more clear and more attractive for the consumers.

Eye Catching Position

Salesman of the Pepsi company positions their freezers and their products in eye-catching
positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion
Company also do sponsorships with different college and school’s cafes and sponsors their sports
events and other extra curriculum activities for getting market share.

34
UTC Scheme

UTC mean under the crown scheme, Pepsi often do this type of scheme and they offer very handy
prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much
popular among children.

DISTRIBUTION CHANNELS

Pepsi Company makes two types of selling

Direct selling
Indirect selling

Direct Selling
In direct selling they supply their products in shops by using their own transports. They have
almost 450 vehicles to supply their bottles. In this type of selling company have more profit
margin.

Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is very difficult for them
to cover all area of Pakistan by their own so they have so many whole sellers and agencies to
assure their customers for availability of Pepsi products.

35
 FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these includes:
 Vizi cooler
 Freezers
 Display racks
 Free empty bottles and shells for bottles

ADVERTISEMENT
Pepsi company use different mediums
 Print media
 Pos material
 Tv commercial
 Billboards and holdings

Print Media

They often use print media for advertisement. They have a separate department for print media.

POS Material

Pos material mean point of sale material this includes: posters and stickers display in the stores
and in different areas.

TV Commercials

As everybody know that TV is a most common entertaining medium so TV commercials is one of

the most attractive way of doing advertisement. So Pepsi Company does regular TV commercials
on different channels.

36
Billboards And Holdings

Pepsi is very much conscious about their billboards and holdings. They have so many sites in
different locations for their billboards.

EXPECTATIONS FOR THE COMING YEAR

Every thing starts from the attitude of consumer’s behavior. And the basic key to attract the
consumers is to throw the “money away”.

And positive feeling felling with the brand, which they used to have Coke wants to advertise their
products heavily in the coming year. And it will take the 10% of their profits. And when we take
it as a global level it is $ I billion.

Coming year is the challenging year for the industry of Coke. They have to take lots of decisions
that how to increase the production and where they have to spend money.
For gaining success in coming year they have to have some important things like:
1. Loyal consumers are important for company’s success.
2. Workers should be the brand centric not the promotion centric.
3. They should know how much to for the brand activities.
4. They should also know that how much to do with the promotion activities for brand.

HOW COKE DETERMINE THE YEARLY BUDGET

Coke determines its yearly budget by the

 Sales volume
 Profitability
 Target volume

37
Sales Volume

Coke determines its yearly budget through the sales volume. They first concentrate on the thing
is “what is the condition of their sales?” if the condition is good of their sales then they definitely
increase their production and sales volume. Otherwise they concentrate on their old strategies.

Profitability:

The second thing through which they determines budget is the “profit” .if they r getting profits
with the high margin, then they definitely want to increase their profits in the next coming year.
Every organization runs on the basis of getting high profits. No organization wants to face Loss
in their business. To get profit is the first priority of the Coke.

Target Volume:

To run the business every industry has some targets, which they want to achieve in a specific time
period. If industry achieves those goals in that period then for the coming year it increases the
volume of the target.
So Coke Follow the same thing it has also some goals and targets to achieve in the given time
period. When they succeed to achieve that target then they increase their target volume in the next
year.

38
SALES PROMOTION ACTIVITIES
Coca-Cola Cricket

Cricket the most sought after; watched & played game in Pakistan .the game of cricket has been
owned by various brands in the industry for the promotion of their products over a period of time.
It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately
to the beverage industry. The competition has become tougher & tougher as the time has
progressed.
Coca-Cola signed a sponsorship agreement with eight of Pakistan’s National cricket players. Coca-
Cola realizing the fact that cricket is a very strong element by which it can reach it consumers &
masses invested in the opportunity and launched a massive campaign on mass media showing all
these cricket stars endorsing & complimenting Coca-Cola brand. The Coca-Cola Company
developed three TV commercials & four testimonial ads with the player & ran them on the national
net work during various cricket matches. These bold steps taken by the Coca-Cola marketing unit
acclaimed them many acknowledgements across the board. This campaign helped Coca-Cola to
establish its association with the game & the player.

Coca-Cola Concerts

Abrar-ul-haq’s distinct style, lyrics & songs have made him an instant hit among the masses in
Pakistan. His enormous popularity in the country & abroad is supported by Coca-Cola’s
commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. Coca-
Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated
TVC & MMT featured throughout the country.

The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through
Coca-Cola in short moments that he had to himself during a concert. Coca-Cola’s brand
positioning of providing deep down refreshment for the body, soul & mind were captured
accurately in the TVC & depicted aptly how the drink completes the moment for Abrar.

39
Coca-Cola Food Mela

With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people of
Karachi, to a festive food festival comprising of 50 restaurants, spread out all over the bustling
city’s map. The promotion saw the avid families & friends enjoying the delicacies at the
restaurants; all resiliently upholding the Coca-Cola identity.

Coca-Cola Basant Festival

In February the month of basant the parks & horticulture authority in Lahore nominated Coca-
Cola the official sponsor of the basantfestival .Coca-Cola added to the carnival atmosphere by
making the festival free to enter & decorating all main roads in Lahore with illuminated kites.
Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had children’s parade & held the Coca-
Cola kite flying championship during the basant festival. Now “where there is basant there is Coca-
Cola”, it has been impossible to envisage basant without Coca-Cola. Coca-Cola give the more
refreshing flavor to the colors of basant by adding more life to the festival, giving the consumer a
unique experience which they had never tasted before.

Coca-Cola GO-RED

Quenching the thirst of motorist, pedestrians & passerby’s during Lahore’s hottest summer season,
Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve & refresh” on the
spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement
campaign the “GO-RED” stall, served well to promote the Coca-Cola industry.

Coca-Cola Party in a Park

In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon
performed. This program was recorded and one-hour program shown in the national TV for free.10
million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event.

40
Coca-Cola Shopping Festival

Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival, a
resounding success with tempting discounts, live music, great prizes &fire works. Liberty
marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. The in
augural event proved so popular that it is now set to become an annual fixture.

Coca-Cola Pet Promotion

In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan. Targeting
house wives & family home, Coca-Cola’s 1.5 liter Pet bottle, took the limelight & gained
momentum with a campaign promoting the unique packaging and its numerous consumer benefits
.A treat for the family, Coca-Cola’s PET was offered through a “price-off” promotion that
said……….Go out & get some

Coca-Cola Ramzan Campaign

A very special occasion for the people of Pakistan Ramzan saw another very special Coca-Cola’s
promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off
promotion. The emphasis on enjoying Coca-Cola at “Iftar” with friends & family.

Coca-Cola Wonder of the World Promotion

In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went ahead with
the idea of giving consumer chances to win fabulous, magical “dream vacation” to numerous
“wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of Coca-
Cola, Sprite, &Fanta.The promotion gave consumers a chance to win free drink, a trip to PARIS,
HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO along with airfare & four nights free stay
in these dream lands. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’
&sparked a keen response from the public , rendering an outstanding testimonial campaign in the
second phase, highlighting the winners over whelmed in the magical delight of their favorite
beverage Coca-Cola.

41
Coca-Cola & Nokia

In August 2001, the new under-the-crown promotion “NiklaKiya?”(What have u won) was
launched in collaboration with Chimera Nokia.The promotion gave consumer a chance to win
thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB
bottle of Coca-Cola ,Sprite, &Fanta.The other highlight of promotion was the “Caught Red
Handed” campaign.

Branded Coca-Cola with ‘caught red handed’ team in them went to Lahore & Karachi for three
days, with target that anyone being caught drinking Coca-Cola will be awarded a nokia 3310
mobile phone & if someone is caught talking on a nokia mobile will win free supply of Coca-Cola.
Caught red handed become a huge success among the masses as it was one to one interaction
between the Coca-Cola brand & the consumers. This activity helped billed confidence and brand
loyalty among core consumers.

Pepsi TV Mazza

The Pepsi new campaign is Pepsi tv mazza, it is a utc scheme in which people are getting television
sets of different sizes. These days this scheme is very popular among the people.

Coca-Cola & Mc Donald’s

Coca-Cola & key account of MC Donald’s launched the “we go together” joint promotion to
reinstate amongst consumers a real sense of the affinity that, both shares globally. The promotion
kicked off with pos material (Danglers, Bunting etc) displayed at all MC Donald’s restaurants
along with a special offer for coke & fries.

Fanta & Sprite Launched

In November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistan witnessed a
soft launch in essence. The Coca-Cola Company declared the new “Non-Returnable” bottles of
Sprite & Fanta as the “New, On the Go Packs” flaunting the innovative packaging convenience.
Fanta & Sprite are sure to enjoy considerable success in Pakistan.

42
Diet Coke

After the acquisition of the individual local franchise bottling facilities in 1996, the company has
successfully launched its first new product, diet coke, for the first time in almost 3 years. The was
linked with three fashion shows as Diet Coke is related to fashion & fitness, but the major hit was
thematic fashion shows in restaurants, which are the key accounts of the company as this has been
never done before in Pakistan.

43
 CHAPTER – 4
DATA ANALYSIS AND INTERPRETATIONS

44
 STUDY ON PRODUCTS

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

7’Up Colourless Lime

Dew Colourless Lime

Lehar Soda Tetrazine Lemon

45
 PRICE SHEET

FLAVOUR PACK PCS RATE PER RATE PER

SIZE PCS PCS
RATE RATE

PEPSI COLA 200 ML 24 168 7 192 8

PEPSI COLA 300 ML 24 214 9 240 10

PEPSI COLA 600 ML 24 454 19 480 20

PEPSI COLA 2000 ML 9 459 51 495 55

MIRINDA 200 ML 24 168 7 192 8

ORANGE
MIRINDA 300 ML 24 214 9 240 10
ORANGE
MIRINDA 600 ML 24 454 19 480 20
ORANGE
MIRINDA 2000 ML 9 459 51 495 55
ORANGE
MIRINDA LEMON 200 ML 24 168 7 192 8

MIRINDA LEMON 600 ML 24 214 9 240 10

7UP 200 ML 24 168 7 192 8

7UP 300 ML 24 214 9 240 10

7UP 600 ML 24 454 19 480 20

7UP 2000 ML 9 459 51 495 55

MOUNTAIN DEW 200 ML 24 168 7 192 8

46
MOUNTAIN DEW 600 ML 24 454 19 480 20

MOUNTAIN DEW 2000 ML 9 459 51 495 55

SLICE 250 ML 24 214 9 240 10

SLICE 500 ML 24 498 21 552 23

SLICE 1200 ML 12 532 44 576 48

MY CAN 250 ML 24 330 14 360 15

PEPSI DIAT 330 ML 24 564 23.5 600 25

SLICE 200 ML 30 285 10 360 12

TETRAPACK
LEHER SODA 300 ML 24 214 9 240 10

LEHER SODA 600 ML 24 454 19 480 20

47
STUDY ON RETAILERS

Retail Shop type

I. Monopoly Retail Shop : The shop selling only one company’s

Products

II. Mix Shop : The shop selling many company’s

Products

The retailers can build a great deal of goodwill for the firm. The marketing strength depends
on the strengths of retail dealers.

Research has conduct survey on different types of outlet like bakeries, cold drink parlor,
Booth and general stores etc.

According to his survey, the major reasons for selling Pepsi products are:

(1) Brand Image 18%

(2) Customer Demand 20%
(3) Profit Margin 05%
(4) Advertisement 30%
(5) Good Quality 10%
(6) Sales Promotion for Retailers 07%
(7) Sales Promotion for Consumers 10

48
Que : - 1) which brand you maintain maximum stock?
Table No.1: the following table shows the maximum stocks of different brands maintained by
the Retailers.
Products No. of Respondents Percentages

Pepsi 20 23%

Coca-Cola 41 27%

Both 39 50%

Total 100 100%

Interpretation:
The above table reveals the information about the maximum stocks of PepsiCo and Coca-Cola
maintained by the different retailers in Solapur. From 100 retailers 20 retailers are maintain only
products of PepsiCo and 41 retailers are maintain a stock of Coca-Cola only and remaining 39
retailers are maintain a stocks of both Companies.

Que: - 2) which product of PepsiCo you have maintained?

Table No.2: The following table shows the information of the numbers of retailers who are
maintaining the different products of PepsiCo.

49
 Types of Products No. of Respondents Percentages

Pepsi 06 10.17%

7up 02 03.38%

Mirinda 03 05.08%

Slice 02 03.39%

All 46 77.98%

Total 59 100%

Interpretation:

The above chart shows the information about different types of products of PepsiCo. The
PepsiCo has the different brands like PepsiCo, 7up, Miranda, Slice etc these are the major
products of PepsiCo. As per the table 10.17% retailers maintaining the stock of Pepsi,
03.38% retailers are maintaining the stock of 7up, 05.08% retailers are maintaining the stock
of Miranda, 03.39% retailers are maintaining the stock of Slice and remaining 77.98%
retailers are maintaining the stock of all products of the PepsiCo.

Que: - 3) How many crates of PepsiCo you have maintained?

Table No.3: The following table shows the numbers of PepsiCo crates maintaining by the
retailers.

50
 Range of Crates No. of Respondents Percentages

01 to 05 38 64.41%

05 to 10 09 15.25%

10 to 15 08 13.60%

Above 15 04 06.78%

Total 59 100%

Interpretation:
The above table shows the information about the crates of PepsiCo maintaining by the retailers.
64.47% retailers are maintaining crates between 1 to 5, 15.25% retailers are maintaining between 5
to 10, 13.60% retailers are maintaining between 10 to 15, 06.78% retailers are maintaining above 10
and 41 retailers are not maintaining the crates of PepsiCo.

Que: - 4) which product of Coca cola you have maintained?

Table No.4: The following table shows the information about the no. of retailers who have
maintaining the different products of Coca-Cola.
Types of Products No. of Respondents Percentages

Thumps-up 05 06.25%

51
 Sprite 04 05.00%

Fanta 05 06.25%

Mazza 03 03.75%

All 63 78.75%

Total 80 100%

Interpretation:
The above chart shows the different types of products of Coca-Cola which is maintained by the
retailers. The Coca-Cola has different types of products like Thumps-up, Sprite, Fanta, Mazza etc. As
per the above table 06.25% retailers are maintaining Thumps only, 05.00% retailers are maintaining
only Sprite, 06.25% retailers are maintaining Fanta only, 03.75% retailers are maintaining only Mazza
and remaining 78.75% retailers are maintaining all the products of Coco-Cola.

Que : - 5) How many crates of coca cola you have maintained?

Table No.5: The following table shows the information of crates of Coca-Cola maintaining by
the retailers.

Range of Crates No. of Respondents Percentages

01 to 05 43 53.75%

52
 05 to 10 17 21.25%

10 to 15 11 13.75%

Above 15 09 11.25%

Total 80 100%

Interpretation:
The above table shows the information about the crates of Coca-Cola maintaining by the retailers.
53.75% retailers are maintaining crates between 1 to 5, 21.25% retailers are maintaining between 5 to
10, 13.75% retailers are maintaining between 10 to 15, 11.25% retailers are maintain above 15 and
other 20 retailers are not maintaining the crates of Coca-Cola.

Que : - 6) Why you choose of PepsiCo?

Table No.6: The following table shows the information of why the retailers are prefers PepsiCo
products.
Reasons No. of Respondents Percentages

Consumers Demand 32 54.24%

Service 16 27.12%

53
 Schemes 04 06.78%

Others 07 11.86%

Total 59 100%

Interpretation:
The above graph shows the demand for PepsiCo products. As per the table the 54.24% retailers are
said they maintain the products of PepsiCo because of consumers demand.27.12% retailers are said
they prefer the PepsiCo products because of services provided by the Company. 06.78% retailers are
said they maintain products of PepsiCo because of Schemes. And 11.86% retailers prefer the products
of PepsiCo because of other things like Taste, Low cost etc.

Que : - 7) which quantity you have maintained maximum stock?

Table No.8: The following table shows the range of quantity maintaining by the retailers.
Quantity No. of Retailers Percentages

200 ml 49 49%

300 ml 12 12%

54
 500 ml 08 08%

1.5 Liters. 11 11%

All 20 20%

Total 100 100%

Interpretation:
The above chart shows the different quantities maintaining by the retailers. As per above chart 49%
retailers are maintaining 200 ml bottles, 12% retailers are maintaining 300ml bottles, 08% retailers
maintaining 500ml bottles,11% retailers maintaining 1.5 Liters. And 20% retailers maintaining all
quantity. Because of huge demand for 200 ml bottles the more retailers prefers only 200ml bottles

Que : - 8) which product of PepsiCo has maximum demand from customer? Table No.9: The
following table shows the information about which product of PepsiCo has a maximum
demand.
Products No. of retailers Percentages

Pepsi 19 32.21%

7up 21 35.59%

Mirinda 11 18.64%

55
 Slice 08 13.56%

Total 59 100%

Interpretation:
The above chart showing the demand for the different products of PepsiCo. As per the chart 32.21%
retailers said more consumers prefers Pepsi, 35.59% retailers said consumers prefers 7up, 18.64%
retailers said more consumers prefers Miranda and 13.56% retailers said consumers prefers Slice.

Que: - 10) which companies’ refrigerator you are using?

Table No.11: The following table showing the refrigerators using by the retailers.
Refrigerator No. of Retailers Percentages

PepsiCo 21 21%

Coca-Cola 11 11%

Both 12 12%

Own 47 47%

All 09 09%

Total 100 100%

56
Interpretation:
The above chart showing the information about which types of refrigerators using the retailers. The
21% retailers are using PepsiCo refrigerator, 11% retailers are using CocaCola, 47% retailers are
using their own refrigerator,09% retailers are using all the refrigerators and 12% retailers using the
refrigerators provided by the PepsiCo and CocaCola.

Que: -11) what is the capacity of your PepsiCo refrigerator?

Table No.12: The following table showing the capacity of PepsiCo’s refrigerator using by the
retailers.
Capacity of refrigerators No. of Retailers Percentages

165 Liters. 19 32.20%

215 Liters. 21 35.59%

350 Liters. 13 22.03%

Deep Fridge 06 10.17%

Total 59 100%

57
Interpretation:

The above chart showing the capacity of refrigerator using the retailers. 32.20% retailers are using
165 Liters refrigerator, 35.59% retailers are using 215 Liters refrigerator, 22.03% retailers are using
350 Liters refrigerator and 10.17% retailers are using Deep Fridge.

Que: -12) what is the frequency of delivery from PepsiCo?

Table No.14: The following table showing the frequency of delivery of PepsiCo products.

Frequency of delivery No. of retailers Percentages

Daily 09 15.25%

Twice in a week 14 23.73%

Once in a week 13 22.03%

Order wise 23 38.98%

Total 59 100%

58
Interpretation:

The above chart showing the frequency of delivery by the wholesaler to the retailers. The above chart
showing the 15.25% retailers said daily, 23.73% retailers said Twice in a week, 22.03% retailers said
once in a week and 38.98% retailers said order wise. As per the chart more retailers got delivery by
order wise.

59
BRAND PREFRENCE

Pepsi products are most popular brand but Coke products are very dear brand of consumers
due to advertisement.

After the collection of different views from consumer which includes, servicemen, students,
and businessman and observing the sale of Pepsi products. The research has calculated the
preference consumption of different Pepsi products by the people of HYDERABAD

Brand Preference of Consumers

Flavour % Consumption

Cola 49%

Orange 16%

Lemon 12%

Lime 07%

Mango 17%

15%

17% Cola
49%
Orange
Lem on
Lim e
Mango
7% 7 Up

12%
16%

60
STUDYING THE MARKET POTENTIAL

The market potential is an estimate of the maximum possible sales opportunities present in a
particular market segment and open to all sellers of a good and service or during a stated future
period. A market potential indicates how much of a particular product can be sold to a particular
market segment. Market potential can be determined by measuring the sales in different areas.

The data has collected from 100 outlets, which are situated in different areas of
Hyderabad. According to that, the per day sale of Pepsi Products is 154 carats and the per day
sale of sale of Coke Products is 148 crates.

Per Day Sales in Crate of Products

Coca Cola
48% Pepsi
Pepsi Coca Cola
52%

61
CHAPTER - 5

FINDINGS

SUGGESTIONS

CONCLUSION

62
 FINDINGS

1. It is observed that retailers are more prefers to the both brands PepsiCo and Coca-Cola the
percentages of preference of both brands are 50%.

2. It is observed that more retailers are maintaining the all products of PepsiCo.

3. It is observed that more retailers are maintaining 5 to 10 crates of PepsiCo.

4. It is observed that more than retailers are maintaining the products of PepsiCo and Coca-Cola
because of Consumer demands.

5. I found that more retailers are prefers to 200ml bottles Soft drink.

6. Most of the Consumers demand for the Pepsi, 7Up and Mirinda Products of PepsiCo.

7. It is observed that the more numbers of retailers are using the refrigerators which are provided
by the PepsiCo and Coca-Cola.

8. It is observed that the frequency of delivery of the products of PepsiCo company is once in a
week.

63
 Suggestions
Lumbini Beverages Pvt. Ltd. should introduce some change in its marketing function and advertising
to market more rational. The following factors to be worthy of consideration:-

1. A complain Register should be provided by the company to every distributor in every route so
that, retailers/customers can write their problems. The complain register should be checked by
consumer executive and depot in charge at time to time.
2. A clear notification should be given to teach distributor and each route agent to give cash memo
(with printed number) and maintain route card for every transaction.
3. Proper care should be given the company’s employees at the time of scheme close. Signature
of scheme receiving on the cash memo should be taken and it should be also maintained in
route card. Claim of scheme should be passed after the deeply stud y of above three points
i.e. difference between opening stock and closing, signature of scheme receiving on the cash
memo and sells maintained in the route card.
4. Some retailers keep other companies products in the Pepsi’s fridge, while is provided by the
company. To check additional scheme be given in every month, in the peak seasons After the
checking of Pepsi’s Fridge (3or 4 times in every month ) if It is found that retailer does not
keep other companies products in the Pepsi’s Pepsi fridge the claim of scheme should be
passed . Thus we can improve/increase its sell and employee’s activities.
5. There is no electricity problem in the whole area of Hyderabad. For chilled soft drink, ice box
which is compulsory and dredge both should be provided by the company.
6. The numbers of outlets are too much. So it is required to short the route and extra
vehicles/tricycles provide in this route.
7. Facilities provided by the company should be increased. Facilities requirements should be
fulfilled in all the rural and urban area properly after deeply study for various aspects or retailers
by the help of company employee and depot incharge.
8. Number of tricycle can be installed at various place like public during the peal hours i.e.
evening and busy roads and chowks near the town`s commercial centers. Care should be taken
to install these tricycles under a shady tree where providing relief from h eat to the prospective
customers as well as the vendor.
9. All these tricycles targeted the tired and thirsty consumer or the road and other place, care
should be taken that soft drinks in the ice box are always chilled and ice readily available.
10. The vendors must be taught to be polite to the consumers.

64
 11. The vendors can also be provided with uniform by the company in order to give them
visibility.
12. An appropriate name should be given to these tricycles and properly advertisement thus
giving them some sort of identity.
13. In winters, as the sales from these tricycles may be very low because of seasonal factors
Beverages Pvt. Ltd. should think of introducing such packs Beaver its various brands of
beverages .
14. It is vital take for “Lumbini Beverages Pvt. Ltd. that maintain the performance of Pepsi in
future therefore performance of soft drink was very good in this year in comparison of coke.
15. Now a day with the introduction of tetra packs such as fruity, Tree Top etc. So Lumbini
Beverages Pvt. Ltd. should think of introducing such packs of its various brands of beverages.
16. Lumbini beverages Pvt. Ltd. should be provided it’s the rural area also.
17. Coke is the only competitor of Pepsi. So we should try to keep every information about Coke
i.e. prices scheme, policy etc. always it will help in Decision making.

At last only this can be said that these suggestions are mot totally but even partially can be used
by the Lumbini Beverages Pvt. Ltd. it would be pleasure for me and is certain that if these are carried
out by management , it will helpful in establishing the Lumbini Beverages Pvt. Ltd. on a more stronger
footing.

65
 Conclusion

In the earlier chapters of this report on various aspects of soft drinks industry with particular
reference to establishment of ‘’Lumbini Beverages Pvt. Ltd.’’ Its organizational structure and
distribution strategies Lumbini Beverage Pvt. Ltd. etc have been studied Present chapter is an attempt
to summaries the whole report and present a view suggestion.

From the data analysis and survey conducted by me, I arrived at the following conclusions:-

(1) Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in the market and its market share
is comparatively more than Coke.
(2) The majority of the retailers deal in all brands of Pepsi and Coca-Cola.
(3) One of the major drawbacks of Pepsi products is that all the flavors do not reach at each and
every retail outlets but competitors products do reach that is why competitor enters in to Pepsi
exclusive outlets .
(4) The major problem faced by the distributor is the shortage of supply particularly pets.
(5) Distributor functions just as order takes; they should contribute me and communicate to the
retailers.
(6) It should be checked that whether our products is reaching to the outlets timely and regularly
or not.
(7) Although the Visi-cooler, Sign board/Display rack and Glass strength provided by Pepsi are
more than Coke but still there are number of retailers, who are either not having these or others
have provided them .
(8) There is irregular in the supply of Visi-cooler, some retailers, which sell more are not provided
Visi-cooler which some retailers, which sell less, are provided visi-cooler.
(9) Some of the Visi-cooler provided by Pepsi is not functioning properly, complaints regularly,
are entertained after a long time.
(10) Most of the retailers are in need of board but not provided by the Pepsi Company.
(11) Most of the retailer’s especially small retailers have complained that the sales man does not
inform about any sales promotional scheme.
(12) The big retailers of Pepsi do not maintain the purity in the Visi-cooler and dictate their own
terms and conditions.

66
 BIBLIOGRAPHY

1) Philip Kotler --- Marketing Principle, marketing books

2) Marketing Management

Web sites

A. www.indiadairy.co
B. www.google.co.in
C. www.pepsicoindia.com

67
 QUESTIONNAIRE

Name: …………………………………………………………………………………..

Address: ………………………………………………………………………………….

Contact No: …………………………………………………………………………………

(1) Monthly sales (in Rs.)

(a) Less than 5000 (b) Between 5000 to 10,000

(c) 10,000 to 15,000 (d) Above 15,000

(2) Number of carets sold per month of soft drinks.

(a) 0 - 50 carets (b) 50 to 100 carets

(c) 100 to 150 carets (d) 150 to 200 carets

(3) Which type of outlet?

(a) General Store (b) Grocery

(c) Betel Shop (d) Sweet Shop

(4) Which brands of soft drinks are available in the outlet?

(a) Pepsi Cola (b) Mirinda (O)

(c) Mirinda (L) (d) 7’Up

(e) Slice (f) Mountain Dew

(5) When a customer comes to your shop which brand of soft drinks does he/she demands? (Rank
them)
(a) Pepsi (b) Pepsi

(c) Others

(6) Do you know about all flavours pack (size) and respective wholesale price Pepsi soft drinks.
(a) Yes (b) No

68
(7) Which company’s soft drink is demanded most?
(a) 0 - 50 carets (b) 50 to 100 carets

(c) 100 to 150 carets (d) 150 to 200 carets

(8) What is the position delivery of Pepsi products?

(a) Very Good (b) Good

(c) Bad (d) Worse

(9) What is the frequency of the visit of Pepsi executive?

(a) Daily (b) Alternate Day

(c) Weekly (d) Fortnightly

(10) Which factors affect the sale most?

(a) Advertisement (b) Scheme

(c) Presence (d) Taste

(e) Price (f) Others

Thank You

69
70