A Summer Internship Project Report on

“Comparative market analysis for SKU system existing in

retailers market for Pepsi products.”

Submitted in partial fulfillment of the requirements for the degree of

Post Graduate Diploma in Management (Marketing)

by

Chandra Shekhar Kumar

Roll.no. E-23

Under the guidance of

Prof. Rupesh Andhrutkar

A Study Conducted for LUMBINI BEVERAGES PRIVATE LIMITED
(PepsiCo FOBO)

at
Indira School of Business Studies
Tathawade, Pune 411033

(2011-13)

1
 ACKNOWLEDGEMENT

I wish to record my deep sense of Gratitude to INDIRA SCHOOL OF BUSINESS STUDIES,

PUNE for giving me such a nice chance to apply my knowledge in practical work.

First of all my most and respectful thanks goes to Parents and the God, for their faith and
support.

I express my profound gratitude to SANDEEP BANERJEE(General Manager) SALES AND

TRAINING, for their kind co-operation and guidance during my summer internship project .I
am also thankful to them for their support and all kind of corporation in collection of information
and giving suggestion to authenticate this project.

I would like to thanks MR. AJAY SINGH for their cooperation for providing us all the
information which were required by us.I would like to thank to my mentor MR. RUPESH
ANDHRUTKAR for his support and thoughtful comments related to the project.

I express my gratitude to all my friends who directly or indirectly helped me in this project. And
last but not the least. I am grateful to all the dealers and the Retailers of Bihar Sharif for their
kind support because only due to their co-operation the project was successfully completed and it
was a good learning experience working with Pepsi to understand the real life working of the
company.

Chandra shekhar Kumar

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 Executive Summary

The project aims at understanding Pepsi market and its services, stock keeping unit (SKU). The
factors responsible for selecting a soft drink brand and which is the leading soft drink brand in
Bihar Sharif. Study aims at knowing which brand of soft drink is most preferred in the market
and the retailer point of view about the service giving by Pepsi to them. Project is all about to
understand the market and analysis the attitude of retailers and wholesaler of the Pepsi. An
attempt has been made to analyze the attitude towards Pepsi soft drink and different soft drinks
brands by studying the factors such as behavior of representative, problem and issue handling of
the Pepsi soft drink.
Study also set sight on satisfaction of retailer and dealer as enormous competition has resulted in
companies focusing on branding as a result of which retailer has been found the important
medium to increase the market share of the company so it becomes important for pepsi soft drink
to retain and know the reason for increasing the satisfaction level of its retailer and dealers
The study conducted throughout the Bihar Sharif. i.eNalanda, Asthawan, Sohasaraietc for the
period of fifty seven days the research has been carried out in the month of may and june 2012.
The information needed for research project was carried out by getting the feedback of retailer,
dealer- distributor and wholesalers through structured questionnaire and interview opinion of
PSR, retailer, whole seller,distributor taken into account for comparison of different soft drink
brands as they have the adequate knowledge and experience to do so.
The project intends in formulating marketing strategy especially the factors and schemes
motivating retailer and dealer in selling also helps in retaining the dealer and retailer of Pepsi soft
drink.

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 INDEX

SN Contents Page. No

1 Introduction 7-9

2 Industry / Company overview 10-18

3 Review of Literature/ Theoretical Background 19-24

4 Objectives 25-26

Research
5 Methodology 27-30

6 Data Analysis , Results, Interpretation and findings 31-47

7 Conclusions 48-49

8 Limitations of the project 50-51

9 Recommendations 52-57

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 LIST OF TABLES

Sl.no Title of the table Page.no.

6.1.1 Type of Outlet 32

6.2.1 Different brands of soft drink in stock 33

6.3.1 Sell of stock in each category per month 34

6.4.1 Type of bottle leading in each category 35

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 Preference level of the retailers in terms of Type of bottle leading in
6.5.1
each category 36

6.6.1 Competitors in each category 37

6.7.1 Satisfaction level with Pepsi support system 38

6.8.1 Types of support system provided by Pepsi 39

6.9.1 Timely awareness about Promotional scheme of Pepsi 40

6.10.1 Different offer received by the retailer from Pepsi 41

6.11.1 NO. of retailers got storage support for S.KU 42

6.12.1 Different type of storage facility provided by the Pepsi 43

6.13.1 Different parameters to compromise Pepsi and Coke 44

List of figures/chart
Sl.no Title of the figure. Page.no.

6.1.2
Type of Outlet 32

6.2.3
Different brands of soft drink in stock 33

6.3.2 Sell of stock in each category per month 34

6.4.2
Type of bottle leading in each category 35

Preference level of the retailers in terms of Type of bottle leading in

6.5.2 each category 36

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6.6.2 Competitors in each category 37

6.7.2 Satisfaction level with Pepsi support system 38

6.8.2 Types of support system provided by Pepsi 39

6.9.2 Timely awareness about Promotional scheme of Pepsi 40

6.10.2 Different offer received by the retailer from Pepsi 41

6.11.2 NO. of retailers got storage support for S.KU 42

6.12.2 Different type of storage facility provided by the Pepsi 43

6.13.2 CHAPTER-1
Different parameters to compromise Pepsi and Coke 44

Introduction

7
1.1What is the project?

Project is all about to understand the market,stock keeping unit (SKU) and analysis the attitude
of retailers and wholesalers of Pepsi. An attempt has been made to analyze the attitude towards
Pepsi soft drinks and different soft drinks brands by studying the factors such has behavior of
representative problem and issue handling of the Pepsi soft drink. Research has been conducted
to gather information on the basis of the structured form of questionnaire.so that it will help to
company to solve their customers problem as well as company can take some corrective action
toward the availability of SKU, distribution of the product and service.

1.2 Definition and purpose of the project

To understanding the company’s problem and to provide appropriate solution to overcome on the
problem.

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Purpose of the project basically is -

Purpose of the project;-

 To study the existing SKU System and finding gaps.

 To identify major competitors in different categories of soft drink.
 To identify the potential retailers of Pepsi.
 To analysis the opportunity to existing in market and ways to attract the retailers.

1.3Scope of the Project

As per the survey whatever information has gathered on the basis of structured form of
questionnaire that will really going to help the company. Company can get to know whether their
availability of SKU really helping to the widening the market coverage . if not then company
can take corrective action. Company can improve in their existing strategy to availability of SKU
in the market and increase the number of customer by giving them attractive offers and
discounts. The project is going to help to company to understanding the retailers point of view on
companies product and services.

1.4 Salient Contribution of the Project

Due this project company become aware about their customer expectation and whether company
meeting the expectation or not. Company will get all information whether company scheme and
offer are reaching or not to their customer. Through this project I could able to understand the
company awareness in the market. Customers become aware about companies policies
companies scheme, discounts and offers.

1.5Outline of the Project report

To do the comparative analysis of carbonated soft drink (CSD),juice based drink (JBD) and
mineral water of both company Pepsi and Coca-Cola.as well as analyzing the overall market
share and individual market share of a brand.I had to visit retailers and fill the EDS on the
guidance of our C.E. As a result, our data is totally primary. I also had to forward the order

9
placed by retailers to the distributor. I also had to take the feedback from retailers and try to
solve the complain of retailers with the help of C.E. After completing the first round in the first
month I had to do the visit of same market. This activity was known as Second visit.

CHAPTER -2
Industry /
Company overview

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Industry / Company overview

Food and beverages industry

The global food and beverage (F&B) sector, which comprises farming, food production,
distribution, retail and catering, was valued at $5.7 trillion USD in 2008. The industry is one of
the major contributors to growth of all economies and has historically witnessed consistent
growth. The industry is expected to increase at a CAGR of 3.5 percent to $7 trillion USD by
2014. In terms of structure, the industry is highly fragmented and the top few players—Nestlé,
Kraft Foods, Unilever and Cargill—account for less than 5 percent of the overall value3.Europe
accounts for the largest share in the global F&B industry, generating revenues of $1.4 trillion
USD in 2007 and employing 4 million workers, followed by the US, which contributed $1
trillion USD. However, Asia, led by China and India, is now emerging as a major contributor of
raw material to the F&B industry. India’s F&B market was valued at $182 billion in 2007-08

11
while the food processing sector alone was worth $72 billion in 2008. China’s food processing
sector increased by 13.6 percent, from $44 billion in 2007 to $50 billion USD in 2008.

The economic slump has had an adverse impact on most industries including the F&B industry.
The major problems faced by the industry are rising food prices, increasing transportation costs
due to a rise in oil prices, and decline in consumer spending. Nevertheless, the F&B industry has
been relatively less affected when compared to other industries. This is mainly attributed to the
fact that food products continue to be essential to consumers in spite of the slowdown. A
comparison between the S&P 500 and the Dow Jones US Food and Beverage Index in 2008 is
testimony to the resilient nature of this industry. In 2008, the S&P 500 declined 37.6 percent
against a fall of 22.9 percent by the Dow Jones US Food and Beverage Index.

Challenges in food and beverages industry in India;-

The Food & Beverages Industry in India in India has seen growth in the past few years. The most
important fact is that the growth looks highly sustainable. Because of the changing lifestyle of
the huge young population of India, the young generation has become more dependant on
packaged food and outside food. This factor alone is capable of driving the growth to a great
extent. Moreover, extensive distribution networks of the Packaged Food Manufacturing
Companies and deeper penetration into the rural markets is also increasing the growth.

But great opportunities come with their inherent challenges. In a scenario where distribution of
the products plays such an important role, often the storage time and the time in transit make
Food Safety a matter of concern.

To solve such problems and to help the Food & Beverage industry to comply with the New Food
Safety Law, Food Safety & Standards Act, Equinox Labs offers the following services:

1. Development of Standards of Food Safety and Food Safety Law compliance: 

2. Ensuring Food Safety and Standards Act (FSSAI) Compliance: 

3. Maintenance of Food Safety as safeguard against the heavy penalties under FSSA

4. Ensuring Food Safety:

5. Ensuring Mandatory Aspects:

6. Ensuring Water Safety:

12
Company overview

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.

PepsiCo is one of the largest MNC exporters in India and its export business consist of three
categories - agri business, commodities and Pepsi system sales. PepsiCo has made significant
investments with the Punjab Agriculture University to develop a comprehensive agro-technology
Programmed that has helped thousands of farmers across India improve the yield of their farms
and the quality of their agricultural products. PepsiCo has leveraged its knowledge in contract
farming to develop seaweed cultivation in Tamil Nadu and has partnered with the Government of
Punjab to help farmers of the state through the utilization of developed technology for citrus
farming.

13
PepsiCo stays committed to providing its consumers with top quality beverages. Its diverse
portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up; Mirinda; Mountain
Dew; Slice fruit drink; Tropicana brand 100% fruit juices in various flavors;

The collection of works is focused on twentieth century & features work by masters such as
Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti,
ArnaldoPamodoro&Claes Oldenburg.

History
PepsiCo is a USA based company having its headquarters 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 Coca Cola. 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 Coca Cola,
but soon Pepsi able to dominate the Cola market, and there after it never looked back. Pepsi and
Coca Cola 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.

14
Organizational chart
BOARD OF DIRECTOR

MANAGING DIRECTOR

DIRECTOR

CEO

HR MANAGER FINANCE MANAGER H.O.S. PLANT MANAGER

(HEAD OF SALES)

HR EXECUTIVE A/C ASSISTANT SHIFT MANAGER

A/C CLERK WORK OPERATOR

15
 Q.C

T.D.M. M.E.M. M.D.M.

( Territory Development Manager)(Marketing Equipment Manager)(Marketing Development Manager)

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

(Business Development Manager)

A.D.C. SENIOR TECHNICIAN MARCHANDISER

(Area Development Co-ordinator)

C.E.
(Costumer Executive )

P.S.R.
(Pre Sales Representative )
R.A.
(Route Agent)
2011 Milestones in the history of Pepsi company.
1. Tingyi Holding and PepsiCo enter into agreement to form strategic alliance in China
2. PepsiCo Foundation expands commitment to Water.org with $8 Million contribution to scale
'WaterCredit' across India
3. Pepsi unveils new social TV platform, Pepsi Sound Off and Social Media Visualization Tool,
Pepsi Pulse
4. PepsiCo, World Food Programme and USAID partner to increase food production and
address malnutrition in Ethiopia
5. PepsiCo named top food and beverage company in 2011 Dow Jones Sustainability Index
6. PepsiCo pilots reduced-calorie cola innovation Pepsi NEXT with 60% less sugar
7. IZZE introduces low-calorie IZZE Esque
8. SoBe rallies Millennials to ‘Try Everything’ with a new line-up of interesting flavors

16
9. PepsiCo and National Football League renew long-term partnership that aligns several
brands with the power of the NFL
10. PepsiCo recognized by Black Enterprise magazine as a Best Company for Diversity
11. PepsiCo Beverages Canada unveils the 7UP Eco Green bottle, Canada's first soft drink bottle
made from 100% recycled PET plastic
12. Working Mother magazine honors PepsiCo for fifth consecutive year as a best company for
multicultural women
13. PepsiCo rolls out eco-friendly recyclable and compostable cups
14. Frito-Lay fans set Guinness World Record for "Most Fans on Facebook In 24 Hours" with
more than 1.5 Million new "likes"
15. NASCAR’s Dale Earnhardt Jr. gets behind Diet Mountain Dew for 2012 season
16. U.S. Environmental Protection Agency recognizes PepsiCo as 2011 Partner of the Year with
Sustained Excellence
17. PepsiCo completes Wimm-Bill-Dann acquisition, making PepsiCo the largest food and
beverage company in Russia
18. Quaker LIFE cereal celebrates 50 years on breakfast tables across America

RANGES OF DIFFERENT PACK AVAILABLE

1. GLASS – 200 ml, 250 ml,300 ml

2. PET - 350 ml, 500 ml, 600 ml, 1 ltr, 1.2 ltr and 2 liter.
3. TETRA - 200 ml (Slice), 1 ltr (Tropicana)
4. CANS - 330 ml
IN GLASS

 24 Bottles * 200 ml = 1 Case

 24 Bottles * 300 ml = 1 Case
IN PET

 24 Bottles * 500/600 ml = 1 cartoons

 12 Bottles * 1000 ml = 1 cartoons
 12 Bottles * 1200 ml = 1 cartoons

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  9 Bottles * 2000 ml = 1 cartoons

 12 Bottles * 1500 ml = 1 cartoons

TETRA

 30 Bottles * 200 ml = 1 Case

CANS

 24 cans * 330 ml = 1 Case

Pepsi's Products

18
 CHAPTER-3
Review of literature

19
3.1Review of literature

Consumer behaviour is the study of when, why, how, and where people do or do not buy
a product. It blends elements from psychology, sociology, social anthropology and economics. It
attempts to understand the buyer decision making process, both individually and in groups. It
studies characteristics of individual consumers such as demographics and behavioural variables
in an attempt to understand people's wants. It also tries to assess influences on
the consumer from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Research has shown that consumer behavior is
difficult to predict, even for experts in the field. Relationship marketing is an influential asset for
customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of
marketing through the re-affirmation of the importance of the customer or buyer. A greater
importance is also placed on consumer retention, customer relationship management,

20
personalization, customization and one-to-one marketing. Social functions can be categorized
into social choice and welfare functions.

Research suggests that customers go through a five-stage decision-making process in any

purchase. This is summarized in the diagram below:

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 Buying Decision making process -

This model is important for anyone making marketing decisions. It forces the marketer to
consider the whole buying process rather than just the purchase decision.

The model implies that customers pass through all stages in every purchase. However, in more
routine purchases, customers often skip or reverse some of the stages.

22
For example, a student buying a favorite hamburger would recognize the need (hunger) and go
right to the purchase decision, skipping information search and evaluation. However, the model
is very useful when it comes to understanding any purchase that requires some thought and
deliberation.

The buying process starts with need recognition. At this stage, the buyer recognizes a problem or
need (e.g. I am Thrust, I need soft drink, ) or responds to a marketing stimulus.

An “aroused” customer then needs to decide how much information (if any) is required. If the
need is strong and there is a product or service that meets the need close to hand, then a purchase
decision is likely to be made there and then. If not, then the process of information search begins.

3.2Theoretical background

A customer can obtain information from several sources:

Personal sources;-

Family, Friends,Neighbours etc.

Commercial sources;-

Advertising, Salespeople, Retailers, Dealers, Packaging, Point-of-sale displays

Public sources;-

Newspapers, Radio, Television etc.

Experiential sources;-

Handling, Examining, Using the product

23
The usefulness and influence of these sources of information will vary by product and by
customer. Research suggests that customers value and respect personal sources more than
commercial sources (the influence of “word of mouth”). The challenge for the marketing team is
to identify which information sources are most influential in their target markets.

In the evaluation stage, the customer must choose between the alternative brands, products and
services.

How does the customer use the information obtained?

An important determinant of the extent of evaluation is whether the customer feels “involved” in
the product. By involvement, we mean the degree of perceived relevance and personal
importance that accompanies the choice.

Where a purchase is “highly involving”, the customer is likely to carry out extensive evaluation.

High-involvement purchases include those involving high expenditure or personal risk – for

example buying a house, a car or making investments.

Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the
supermarket) have very simple evaluation processes.

Why should a marketer need to understand the customer evaluation process?

The answer lies in the kind of information that the marketing team needs to provide customers in
different buying situations.

In high-involvement decisions, the marketer needs to provide a good deal of information about
the positive consequences of buying. The sales force may need to stress the important attributes
of the product, the advantages compared with the competition; and maybe even encourage “trial”
or “sampling” of the product in the hope of securing the sale.

Post-purchase evaluation - Cognitive Dissonance

24
The final stage is the post-purchase evaluation of the decision. It is common for customers to
experience concerns after making a purchase decision. This arises from a concept that is known
as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative
would have been preferable. In these circumstances that customer will not repurchase
immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to persuade the potential
customer that the product will satisfy his or her needs. Then after having made a purchase, the
customer should be encouraged that he or she has made the right decision.

(Source;- Research paper-“ Agent- based simulation of consumer purchase decision making and the
decoy effect.” Author – Tao zhang, David Zhang. Source- Journal of business research . 60 (2007) 912-
922.)

25
CHAPTER-4
Objective

26
4.Objectives

 To study the existing SKU System and finding gaps in Pepsi products.
 To identify major competitors in different categories of soft drink.
 To identify the potential retailers of Pepsi in designated area.
 To analysis the opportunity existing in market and ways to attract the retailers for
increasing sales.

27
 CHAPTER-5
Research
Methodology

28
5.Research Methodology

Research

Research can be defined as the scientific search for knowledge, or as any systematic
investigation, to establish novel facts, solve new or existing problems, prove new ideas, or
develop new theories, usually using a scientific method.

5.1.1Research Methodology

Research methodologyis a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a researcher in studying his research problem along with the
logic behind them to give a solution for the problem by collecting data, analyzing data & find the
conclusion for the problem.

The system of collecting data for research projects is known as research methodology. The data
may be collected for either theoretical or practical research for example management research
may be strategically conceptualized along with operational planning methods and change
management.

5.1.2Type of research: - Exploratory and descriptive research.

Exploratory research
Exploratory research is a type of research conducted for a problem that has not been clearly
defined or for initial subject knowledge for better research planning. Exploratory research helps
determine the best research design, data collection method and selection of subjects. The
Exploratory research begins with the study about Stock keeping unit (SKU) of Pepsi products.

Descriptive research
Descriptive research is undertaken to gain insights concerning after improving SKU of Pepsi
and its competitors practices followed by the organizations in relation to the customer service.

29
The questionnaire is so framed that it covers almost all the aspect of the after SKU practices. To
understand the Pepsi product and its SKU. Description of the practices in relation to the benefit
in the various sectors was first made. The research carried out with primary data collection by
method of questionnaire, to give answer to the organization regarding analysis of SKU in
retailers market for Pepsi products.

5.1.3 Sampling Size:

The sample size will be 152 retailers. Under which various retailers and distributor was
covered. An attempt made to get the responses from each retailers. As many as possible. But
preference area was Bihar Sharif in Nalanda District.

5.1.4 Sampling Method:

Non Probabilistic- Convenience sampling was adopted. The survey was conducted based on the
dealers and retailers willing to give data & approached by the researcher.

5.1.5 Data Collection Method:

Data type is both qualitative and quantitative. The questions that enquire about the SKU system
prevailing practices such as the make product availabile , distribution management, identify
potential customer quality issues, company approach towards the problem, etc. The questions
pertaining to the number, type of outlet and availability of SKU in the market owned by the
retailers covered to the quantitative data.

The data collection tool is the Structured Interview. It is in the hard copies will also be filled by
directly meeting with the retailer.
Primary data
 Primary data is the new or fresh data collected from the respondents through structured
scheduled questionnaire.
Secondary data
 The secondary data are collected through the use of internet as a source.
 Company database

30
  Research reports
Data analysis techniques to be used:

The data was summarized in the excel sheets. Then Tabulation, Bar & Doughnut charts was
drawn according to the responses.

 Exploratory and Descriptive research was used for the project.

 Sampling Universe: All the retail store in Nalanda district.

 Sampling Frame: All the retailer and distributor in Nalanda district.

 Sampling Unit: A single respondent was taken as a sampling unit.

 Sample Size: Total152 respondents.

 Sampling technique: Non-Probability Convenience Sampling

 Data Collection: Primary data was collected through a structured questionnaire.

 Secondary data was collected from company sources and other reliable sources

31
CHAPTER-6

Data analysis

32
DATA ANALYSIS INTERPRETATION

Type of Outlet in Nalanda district.

6.1 Type of retailer

(a) Grocery (b) Eater (c) convenience

Table- 6.1.1

Type of outlet No. of respondent percentage

Grocery 73 48
Eater 48 32
convenience 31 20
Total 152 100

Figure- 6.1.2

Type of outlet
Grocerry Eater convinence

20%

48%

32%

Interpretation

There are 48% of outlets are grocery which have maximum number of outlet in Nalanda district, 32%
eater and 20% Convenience. Thus minimum number of outlet is convenience. This market is highly
focused on Grocery outet.

33
 6.2 What are different brands of soft drink present in your stock?
(a) Pepsi (b) Coca-Cola (c) both

Table- 6.2.1

Name of company No. of respondent percentage

Pepsi 39 26
Coca-Cola 55 36
Figure- 6.2.2
Both 58 38
Total 152 100

Market share of Stock in retail outlet

26%
38%
Pepsi

Coca-Cola

Both
36%

Interpretation

There is 36% of retailer common where Pepsi and Coca-Cola products sold. 26% are Pepsi
exclusive outlet as well as 36% of outlets are Coca-Cola exclusive outlet. Thus common retailer
is important for Pepsi.

Sell of stock in each category per month

34
 6.3 How many cases do you sold per month in each category?
(a) Pepsi (b) Coca-Cola
 CSD;-…………………………. CSD;-………………………….
 JBD;-………………………….. JBD;-…………………………..
 Mineral water;-………….. Mineral water;-………

Table- 6.3.1

Category Pepsi Coca-Cola

CSD 260 450
JBD 458 594
Mineral water 819 575
Total 1537 1619

Figure- 6.3.2

Market share of stock in each category

CSD JBD Mineral water
819

594 575
458 450
260

Pepsi Coca-Cola

Interpretation

In this case CSD (Carbonated soft drink) of Pepsi has sold 260 case on the other hand same
segment competitor sold 450 case. Thus in CSD category Coca-Cola is the leader of this
segment.

In the case of JBD ( juice based drink) Pepsi had sold 458 case where competitor sold 594.
Again Coca-Cola has strong market in this segment. Reason is unavailability of product like –
slice. On the other hand competitor Product was available in Nalanda.

In the case of mineral water Pepsi is the leader in Nalanda district 819 case sold per month on the
other hand Coca-Cola have only 575 cases per month.

Type of bottle leading in each category

35
 6.4 What type of bottles is leading in each category?
(a) Pepsi

CSD 200ml 300ml 600ml 1ltr 1.2ltr 2ltr

JBD 200ml 300ml 600ml 1ltr 1.2ltr 2ltr
Mineral 500ml 1ltr 2ltr
water
(b) Coca-Cola

CSD 200ml 300ml 600ml 1ltr 1.2ltr 2ltr

JBD 200ml 300ml 600ml 1ltr 1.2ltr 2ltr
Mineral 500ml 1ltr 2ltr
water
Table- 6.4.1

Categor Pepsi No. of Coca- No. of

y respondent Cola respondent
CSD 200ml 39 200ml 42
JBD 600ml 21 600ml. 21
Mineral 1ltr. 15 1ltr. 14
water
Total 75 77
Figure- 6.4.2

quantity no.of respondent for Pepsi

NO. of Respondent for Coca- Cola
42
39

21 21
15 14

0 0 0
Axis Title

Interpretation

In this case demand for glass bottle is more for both Pepsi and its competitiors.where Pepsi have
39 retail on the other hand competitiors have 42 retailers leading in 200 ml.In this case (JBD)
Pepsi and its competitiors have equal 21 retailers are leading.In this case (Mineral water) Pepsi
have 15 retailers leading in Aqua- fina. On the other hand competitiors have 14 retailers.

6.5 What type of material bottling is preferred?

36
 (a)Pepsi (b) Coca-Cola

 Glass Glass
 PET PET
 Can Can
 Tetra pack Tetra pack

Table- 6.5.1

Compan Glass PET Can Tetra-

y Name pack
Pepsi 23 18 4 21
Coca- 33 22 7 24
Cola
Figure-6.5.2

Type of bottling preferred by retailer

Glass PET Can Tetra-pack
33

23 24
21 22
18

7
4

Pepsi Coca-Cola

Interpretation

In this case of Pepsi 23 outlet want to glass bottle on the other hand Coca-Cola have 33 outlets
are preferred glass bottle. Because of rural market and there was huge demand of glass bottle.

In the case of PET bottle 18 outlets preferred for Pepsi on the other hand competitor have 22
outlets favored. Due to occasionally uses of pet bottle.

In the case of Can bottle , Pepsi have only 4 outlet on the other hand Coca-Cola have 7 retailers
which have more than Pepsi. There is reason behind less can bottle cost of product is high and
rural market influencing the less can bottle.

In the case of Tetra pack Pepsi have 21 retailers on the other hand competitior have 24 retailers
which had more than Pepsi.due to availability of product in small quantity and less price.

Competitors in each category

37
 6.6 Who is strong in the following category?

Company Name CSD JBD Mineral water

Pepsi
Coca-Cola
Table- 6.6.1

Company Name CSD JBD Mineral water

Pepsi 25 28 28
Coca-Cola 31 30 10

Figure- 6.6.2

35
31 30
30 28 28
25
25

20
Pepsi
15 Coca-Cola
10
10

0
CSD JBD Mineral water

Interpretation

In the case CSD (carbonated soft drink) Pepsi got second position with 48% of market share on
the other hand Coca-Cola is the leader in this segment.

In the case of JBD (juice based drink) Pepsi and competitors both have 50% equal market share
in Nalanda District.

In the mineral water segment Pepsi is the leader with 75% of market share. on the other hand
competitior have only 25% market share in the mineral water segment.

6.7 Are you satisfied with Pepsi SKU system?

(a) Yes (b) No

38
 Table-6.7.1

Satisfied with Pepsi No. of respondent

Yes 69
No 83
Figure- 6.7.2

Satisfied with Pepsi SKU

Yes
45%
No
55%

Interpretation

45% of retailer are satisfied with Pepsi SKU system it means less Pepsi focus market in Nalanda
district.

39
 6.8 What type of support system Pepsi is providing?

(a) Make product available.

(b) Quality management.
(c) Distribution channel system.
(d) Inventory management.
Table-6.8.1

Support system Percentage No. of respondents

Make product available. 37 25

Quality management. 27 19

Distribution channel system 23 16

Inventory management 13 9
Figure- 6.8.2

No.of respondent
30

25

20
No.of respondent
15

10

0
Make product available Quality Distribution Inventory management

Interpretation

In this case 25 retails are agree with product availability in the market, 19 outlet agree with
quality management,16 outlets with strong distribution network. And 9 outlet with inventory
management. Thus we can say that maximum outlet agree with product availability in the
market. Minimum retailers with inventory management.

6.9 Is Promotional scheme reach on time from Pepsi?

40
 (a) Yes (b) No
Table-6.9.1

Promotional scheme No. of respondent

Yes 21

No 48

Figure- 6.9.2

Promotional scheme
yes
30%

No
70%

Interpretation

70% of retailers don’t get scheme on the other hand 30% of retailer got scheme on time. There is
huge gap in promotional scheme between distributor and retailer.

6.10What are the different offers do you receive as a retailer from Pepsi?

41
 (a) Reward scheme.
(b) Unit based scheme.
(c) Advertising, Banner, Sign board.
(d) Monetary benefit (Margin)
(e) Gift. (Watch, TV etc.)
Table – 6.10.1

Promotional scheme No. of respondents Percentage

Reward scheme 5 8
Unit scheme 37 53
Advertising 11 16
Monetary benefit 9 13
Gift 7 10
Figure- 6.10.2

40 No. of respondents
30
20
10
0
e No. of respondents
em e
sc
h
he
m d)
c ar ry
rd s o ta ft
wa ed er
,b
on
e Gi
Re b as n M
it an
un g(b
sin
erti
v
ad

Interpretation

8 % retailer got reward from Pepsi distributor. In the other case 53% of retailer received unit
based benefit. Only 16% retailer got banner and board. 13% monetary and 10% retailer got gift.

6.11 Does Pepsi provide storage support for S.KU?

(a) Yes (b) No

42
 Table- 6.11.1

Storage support No. of respondent Percentage

Yes 41 59

No 28 41

Figure- 6.11.2

No.of respondents
No
41%

Yes
59%

Interpretation

59% of retailer having storage system, on the other hand 41% retailers don’t have storage
system.

6.12Which type of storage facility providing by the pepsi to you?

(a) Visi-coller (b) Ice-box
Table- 6.12.1

43
 Type of Storage No. of respondent
Visi-cooler 28
Ice-box 13

Figure- 6.12.2

No.of respondent
Visi- coller Ice-box

32%

68%

Interpretation

Out of 40 retail outlet 68% have visi-coller and 28% ice- box. Due to rural area , lack of
electricity ice- box is also important.

6.13Rank the following parameters to likert scale. (1- not satisfactory …4- average,…7-
very good.)

Parameters Pepsi Coca-cola

SKU system 1,2,3,4,5,6,7 1,2,3,4,5,6,7

44
 Incentive 1,2,3,4,5,6,7 1,2,3,4,5,6,7
Maintenance 1,2,3,4,5,6,7 1,2,3,4,5,6,7
support system
Distribution channel 1,2,3,4,5,6,7 1,2,3,4,5,6,7
Scheme 1,2,3,4,5,6,7 1,2,3,4,5,6,7
Table- 6.13.1

parameters Pepsi Coca- Cola

SKU system 5.75 6.11
Incentive 6.5 5.75
Maintenance support 4 5.25
system
Distribution channel 5.11 5.50
Scheme 6 5
Figure 6.13.2

Comprative parameters of Pepsi and its competitiors

Pepsi Coca-Cola

5.75 5
6.11 5.25 5.5

6.5 6
5.75 4 5.11

SKU system Incentive Maintenance Distribution Scheme

Interpretation

1- Not satisfied
2- 4 – Average

45
 3- 7- Good

In the case of SKU , Pepsi got more than average point 5.75 on the other hand Coca-Cola got
6.11 i.e approx. good

In the case of incentive Pepsi got first position with 6.5 points. On the other hand Coca-Cola
having 5.75 points.

In the case of maintenance Pepsi is not in good position average point is 4. On the other hand
competitors have better than Pepsi.

In the case of Distribution system Pepsi have strong position in the Nalanda district with 5.11
points. On the other hand Coke got 5.5 points.

In the case of scheme Pepsi got strong position with 6 points. Because Pepsi is always giving
unit based incentive.

Finding

46
1. There are 48% of outlets are grocery which have maximum number of outlet in Nalanda
district, 32% eater and 20% Convenience. Thus minimum number of outlet is
convenience. This market is highly focused on Grocery outet.
2. There is 36% of retailer common where Pepsi and Coca-Cola products sold. 26% are
Pepsi exclusive outlet as well as 36% of outlets are Coca-Cola exclusive outlet. Thus
common retailer is important for Pepsi.
3. CSD (Carbonated soft drink) of Pepsi has sold 260 case on the other hand same segment
competitor sold 450 case. Thus in CSD category Coca-Cola is the leader of this segment.
4. JBD ( juice based drink) Pepsi had sold 458 case where competitor sold 594. Again
Coca-Cola has strong market in this segment. Reason is unavailability of product like –
slice. On the other hand competitor Product was available in Nalanda.
5. Mineral water Pepsi is the leader in Nalanda district 819 case sold per month on the
other hand Coca-Cola have only 575 cases per month.
6. Demand for glass bottle is more for both Pepsi and its competitors.where Pepsi have 39
retail on the other hand competitors have 42 retailers leading in 200 ml.
7. JBD Pepsi and its competitors have equal 21 retailers are leading.
8. Mineral water Pepsi have 15 retailers leading in Aqua- fina. On the other hand
competitiors have 14 retailers.
9. Pepsi have 23 outlet want to glass bottle on the other hand Coca-Cola have 33 outlets are
preferred glass bottle. Because of rural market and there was huge demand of glass bottle.
10. PET bottle have 18 outlets preferred for Pepsi on the other hand competitor have 22
outlets favored. Due to occasionally uses of pet bottle.
11. Can bottle, Pepsi have only 4 outlet on the other hand Coca-Cola have 7 retailers which
have more than Pepsi. There is reason behind less can bottle cost of product is high and
rural market influencing the less can bottle.
12. Tetra pack Pepsi has 21 retailers on the other hand competitior have 24 retailers which
had more than Pepsi. Due to availability of product in small quantity and less price.
13. SKU of Pepsi got more than average point 5.75 on the other hand Coca-Cola got 6.11 i.e
approx. good
14. Incentive Pepsi got first position with 6.5 points. On the other hand Coca-Cola having
5.75 points.

47
15. Maintenance of Pepsi is not in good position average point is 4. On the other hand
competitors have better than Pepsi.
16. Distribution system of Pepsi have strong position in the Nalanda district with 5.11
points. On the other hand Coke got 5.5 points.
17. Scheme Pepsi got strong position with 6 points. Because Pepsi is always giving unit
based incentive.

48
 CHAPTER-7

Conclusion

CONCLUSION

49
 Following are the conclusion based on research:
 Pepsi have 26% SKU available in the market on the other hand competitors have
36% SKU available in the market and both have 38% SKU in common market
where Pepsi and Coca-Cola are sold through common outlets. Pepsi have gap in
the terms of unavailability of stock on demand, storage facility and distribution
channel got below average 3.5(Competitor 4.3), 4 (competitor 5.21)and 5.11
(competitor 5.50) on scale of seven point linkert scale respectively.
 The major competitor is Coca-Cola which provide better scheme for retailer,
storage facility and availability of stock on demand got over the average point 5.
On the other hand JBD and Mineral water segment Pepsi is performing well on
Pepsi focus market. In the case of CSD segment Coca-Cola is the market leader in
Nalanda district.

Categories Biggest Competitors Pepsi

Name & case Sells
CSD Coke (450) - 69% 260-31%
JBD Coke (494) -52% 458- 48%
Mineral water Pepsi (899)-65% Coke-495- 35%

 Pepsi potential retailers are high where there is near to the distribution Centre. But
competitors have comparatively strong market in Nalanda district. (out of 41
outlet 36 are near to distribution Centre, sample size is 152.)
 Pepsi is using promotional tool for attracting retailer like providing unit based
incentive,banner,painting as the etc. but main problem is there competitors are
using more tool for attracting customer.


50
CHAPTER-8
Limitation of
project

51
Limitation of project

Though the study is framed in a manner that it provides answer to the basic questions which are
needed to study but sometimes it becomes a bit tougher to get the right answers from the
respondents. Constraints which are there to limit the study are:

 Time of the respondents;- Respondent don’t have sufficient time for filling questionnaire.

 Lack of proper coordination from the side of the respondents;-Respondent were not
serious about filling questionnaire.

 Understanding of the topic to the respondents;- Nature of topic is complex, so

respondent was not able to understand.

 Probable biased answers given by respondents;- Due to lack of knowledge answer may
be biased.

 Limited period of project;- Period of project was only 60 days that was not sufficient for
project.

52
 CHAPTER-9
Recommendatio
n

53
Recommendation

Chilling equipment

 Company should provide more chilling equipment to the retailer.

 Company should tie up with local electronic shop for maintenance of chilling equipment.

 Company should provide more ice box in rural area.

Availability of SKU

 The product should be made available as per demand.

 Company should assure that retailer got latest offering.

 Company should assure that distributor is distributing in designated area.

Promotional activity

 Company should increase the promotional activity like painting, banner distribution etc.
thus potential customer can increase.

54
Appendix
A) Questionnaire
B) Bibliography

55
Name of retailer;-…………………………………………………………………………

Type of retailer

(b) Grocery (b) Eater (c) convenience

How many years old are you in this business? …………….

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

1.What are different brands of soft drink present in your stock?

(b) Pepsi (b) Coca-Cola (c) both

2. How many cases do you sold per month in each category?

(c) Pepsi (b) Coca-Cola

 CSD;-…………………………. CSD;-………………………….
 JBD;-………………………….. JBD;-…………………………..
 Mineral water;-………….. Mineral water;-…………
3. What type of bottles is leading in each category?

(a) Pepsi

CSD 200ml 300ml 600ml 1ltr 1.2ltr 2ltr

JBD 200ml 300ml 600ml 1ltr 1.2ltr 2ltr
Mineral 500ml 1ltr 2ltr
water
(d) Coca-Cola

CSD 200ml 300ml 600ml 1ltr 1.2ltr 2ltr

JBD 200ml 300ml 600ml 1ltr 1.2ltr 2ltr
Mineral 500ml 1ltr 2ltr
water

4.What type of material bottling is preferred?

(a)Pepsi (b) Coca-Cola

 Glass Glass
 PET PET
 Can Can
 Tetra pack Tetra pack

5.Who is strong in the following category?

56
Company Name CSD JBD Mineral water
Pepsi
Coca-Cola

6.Are you satisfied with Pepsi SKU system?

(b) Yes (b) No
7. What type of support system Pepsi is providing?
(e) Make product available.
(f) Quality management.
(g) Distribution channel system.
(h) Inventory management.
8. Is Promotional scheme reach on time from Pepsi?
(a) Yes (b) No
9. What are the different offers do you receive as a retailer from Pepsi?
(f) Reward scheme.
(g) Unit based scheme.
(h) Advertising, Banner, Sign board.
(i) Monetary benefit (Margin)
(j) Gift. (Watch, TV etc.)
10. Does Pepsi provide storage support for S.KU?
(b) Yes (b) No
11. Which type of storage facility providing by the pepsi to you?
(b) Visi-coller (b) Ice-box
12. Is Pepsi providing maintenance facility?
(a) Yes (b) No

13.If yes-

(a) Once in a year.

(b) Twice in a year.
(c) Once in six months.

14.Rank the following parameters to likert scale.(1- not satisfactory …4- average,…7-
very good.)

Parameters Pepsi Coca-cola

SKU system 1,2,3,4,5,6,7 1,2,3,4,5,6,7
Incentive 1,2,3,4,5,6,7 1,2,3,4,5,6,7
Maintenance 1,2,3,4,5,6,7 1,2,3,4,5,6,7
support system
Distribution channel 1,2,3,4,5,6,7 1,2,3,4,5,6,7
Scheme 1,2,3,4,5,6,7 1,2,3,4,5,6,7

57
BIBLIOGRAPHY

Books

 Consumer behavior in Indian perspective-SujaR.Nair 5th edition 2007

 Marketing management- P. kotler ,Keller,Koshy,Jha 13th edition

 Research methodology- C.R Kothari. 2nd edition 2004

Internet site

www.pepsico.com

www.cocacocla.com

www.pepsicoindia.com

www.marketingteacher.com

www.foodandbeverageindia.com

Article

 “ Bottom of the pyramid “ by- Manu Anand chairman of Pepsico India. (Economic
Times , 6th July 2011 )

 “Agent- based simulation of consumer purchase decision making and the decoy
effect.” By- Tao zhang, David Zhang. Source- Journal of business research . 60 (2007)
912-922.)

58