RESEARCH REPORT

ON
“MARKETING STRATEGY OF PEPSICO”

. Submitted in the partial fulfillment for the award of degree in

MASTER OF BUSINESS ADMINISTRATION (MBA)
(SESSION 2018-2020)

SUBMITTED TO: SUBMITTED BY:

Ms. TRIPTI SINGH Akash verma
(Professor) Roll No. 1882870003
(MBA)

DAYAL GROUP OF INSTITUTIONS

LUCKNOW
1
 DECLARATION

I hereby declare that the following project report titled "MARKETING STRATEGY OF

PEPSICO" is an authentic work done by me. This is to declare that all the work indulged in the

completion of this work such as research, data collection, analysis is a profound and honest work

of mine.

Akash verma
MBA
1882870003

2
 PREFACE

The topic chosen by me for my project is “MARKETING STRATEGY OF PEPSICO”

in reference to PEPSICO.

Today there are various companies coming in Indian and these certainly will exist a

cutthroat competition in these field. I have chosen a Larsen and Toubro as a topic essence of

my project .today four wheeler consumer due to new manufacturing entrant has started

getting a wide choice while buying one these gave to considered the facility provided by

the four wheeler the price ,mileage , maintenance and service etc.

3
 ACKNOWLEDGEMENT

It gives me pleasure to present this report. This report is outcome of the study on

“MARKETING STRATEGY OF PEPSICO”. I got support from many people without their

help I would not have got success. I wish to record sincere appreciation and thanks to them.

I am very grateful to Ms. TRIPTI SINGH, (Branch Manager) for helping me in

various steps and encouraging me for having me an opportunity to work in their organization on

a project.

Finally, I am very thankful to all of my friends whose cooperation and

suggestions have helped me in successful complete of this project.

Akash verma
MBA
1882870003

4
 TABLE OF CONTENT

SR. TOPIC PAGE

NO. NO.
 DECLARATION
 PREFACE
 ACKNOWLEDGEMENT
CHAPTER -1 7-70
1. INTRODUCTION TO THE STUDY 8
2. PROFILE OF PEPSI INTERNATIONAL 13
3. HISTORY OF THE SOFT DRINK IN INDIA 15
4. PRODUCTION PROCESS 19
5. MARKETING STRATEGY 40
6. RESEARCH METHODOLOGY 62
7. OBJECTIVE OF THE STUDY 64
8. SCOPE OF THE STUDY 65
9. LIMITATION 66
10. FINDINGS 68
CHAPTER - 2 71-84
11. DATA ANALYSIS AND INTERPRETATION 72
CHAPTER - 3 85-92
12. SWOT ANALYSIS 86
13. CONCLUSION 88
14. SUGGESTIONS & RECOMMENDATIONS 90
15. APPENDIX 94
16. BIBLIOGRAPHY 98

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 CHAPTER - 1
INTRODUCTION

6
 INTRODUCTION TO THE STUDY

So there can be a satisfaction from the organization side and 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 s n a c k s

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

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 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 Patna, Manchester orMadras.

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 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.

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 IMPORTANCE AND RELEVANCE OF THE STUDY

Cold drinks were started with the idea of quenching the thirst of the persons
traveling. It was also felt that reliable good water was not available everywhere. So people
would really on their packed bottle and with this idea its makers made these drinks
available mostly, at those places where water was not available i.e. on highways and long
distance trains.
But slowly and slowly with its beautiful taste these become very popular and now they
are available not only in the market and street corners, but also people have started keeping
it in their house.
The credit of popularizing the soft drink goes to Coca Cola. This was the drink
which is liked by all ladies, gents and children. Now day’s soft drinks are quenching thirst
looks more often; they are taken due to habits.
Gold Sport is considered as the first branded soft drinks, established 53 years ago
before all empowering Coca Cola faced competitions and its euphoric image built up in the
western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. is
regarded as the first Indian Company introducing Limca a leman drink complementary to it
this has also introduced Cola Pepone which was withdrawn in the face of tough
competition from Coca Cola.
When Coca Cola bid a Farwell in 1977, Indian market was open for various new
forward publishing different brands in the markets. Parle people introduced their Cola,
Thums Up with a mighty saying “Happy days are here again” as if happy days went away with
Coca Cola. Pure drinks of Delhi also w i t h o u t lasing much introduced pure drinks were
producing and marketing Coca Cola earlier Campa Cola with Campa orange and Campa
lemon. Modern Bakeries entered the market with Double Cola Seven, Mohan Makings
with Merry & Plkup and McDowell with Thrill, Rush and Sprint. This is Indian market where
there was no competition and high voltage advertising was on each one was trying their
best to become number one company with ‘A’ class product in the field of Soft Drink
business. Now after a long gap government of India had given permission to Coca Cola,
which joined with Parle to do business in India. They are trying their best to regain prestige

9
which it had before. The much rival of Parle is Pepsi an American concern. It started
business on the Indian soil just a few years ago.
Today, it has occupied 62% shares of Soft Drinks market in India. Now Pepsi is
going all out to prove that they are the b e s t . But now due to some factors competition
among them has become stiffen. So in this way the important activities have increased.

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INTRODUCTION TO THE SOFT DRINK IN INDIA

 History of the Soft Drink In India

 History of Pepsi
 Production Process
 Product Manufacturing and Main Consumers

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 PROFILE OF PEPSI INTERNATIONAL

Pepsi is situated at Somers New York in U.S.A. Indra K Nooyi is chairman and CEO of
Pepsi.

Calab bradham A North Carolina pharmacist concocted Pepsi-cola in the year 1890 as a cure

Dyespsia (indignation), in 1903, business strategy worked & in 1905 he built in 1909 he had a

New York auditing agency. PepsiCo Food & Beverages International, a full fledge co. earn s

more then half of its global revenues from snack foods & fast foods. PepsiCo’s major Business

includes Pepsi foods, KFC, pizza hut, taco bell & California pizzas is a world leader in restaurant

business also. PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab

government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.

PepsiCo is a world leader in convenient foods and beverages,

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Beverage industry is one of the fast growing industries in India. It can be divided into two

sections i.e. carbonated and non-carbonated. The carbonated drinks can be further classified into

Cola, Lemon, Orange, Mango & Apple segments etc.

Marketing includes all the activities like promotion, distribution, advertising etc., to fulfill the

demands of all segments of consumers. Marketing is also to convert social needs into profitable

opportunities. So this topic provides all the essentials to theoretical knowledge with practical

knowledge and to inculcate the efficiency. It is also a requirement for the company to improve its

service and product quality to achieve the ultimate goal.

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 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 Coca Cola 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 Coca Cola.

When Coca Cola 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 Coca Cola.. Pure drinks of Delhi also without

losing much time introduced pure drinks were producing and marketing Coca Cola earlier

Campa Cola along with Campa orange and Campa lemon. Modern Bakeries entered in the

market with the Double Seven.

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Moharn meakings 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 Coca Cola to start

their business in India.

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 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 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 t h e p r o d u c t t h r o u g h f u n c t i o n Pepsi o u t l e t s . Its a d v e r t i s e m e n t a g e n c y

w a s “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

16
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.

In April 1997 the Pepsi cola international decided that Steel City Beverage will

cover south Bihar (now Muzaffarpur) only. In this accordance Pepsi cola international

decided to open another bottling plant at Hajipur named Beverages Pvt. Ltd. Hajipur which

will distribute Pepsi product in whole Bihar.

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 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

18
 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 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 s o d a T r i -Sodium Phosphate,

Sodium Glausonate is adding to the caustic by the supplied. The Caustic tank

19
 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 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

20
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.

(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 tes t 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.

21
The steps involved in the Production Process are:-

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.

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 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 Tetrazine Lime
300 ml, 200ml
Mirinda Tetrazine Mango
300 ml, 200ml
7 Up Mountain Colorless Lemon
Dew Slice 300 ml, 200ml Colorless Lemon
Lehar soda Sunset Mango
300 ml, 200ml
Tetrazine Lemon
Pet
300 ml Brunt sugar Cola
Pet
300 ml Brunt sugar Cola
Can
Brunt sugar Cola
Aquafina 1.5 lt.
Colorless White
(Mineral Water) 2 lt.

330 ml

1 lt.

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 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.

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 HISTORY AND ORGANIZATIONAL STRUCTURE OF
LUMBINI BEVERAGES PVT. LTD.

History of Lumbini Beverages Pvt. Ltd.

Steel City Beverages Pvt Ltd. is situated at Adityapur Kandra Road in

Jamshedpur. “Rushabh Marketing Pvt. Ltd.” is the marketing division of Steel City

beverages. Steel City beverages Pvt. Ltd. is a mother unit and its whole marketing

activities are done through Rushabh Marketing Pvt. Ltd. Steel City beverages is one of the

Pepsi foods Bottling plants in the country and one of the three in Eastern India. The other

two Calcutta and Guwahati. But from 01-04-1997 “Pepsi Foods Ltd. India” determines

to open another bottling plant which is situated at Hajipur namely “Lumbini Beverages Pvt.

Ltd.” It is only for North Bihar.

Steel City beverages Pvt. Ltd. was established by Late Mr. Dharam Chand

Kamani in the month of June 1967. The machineries of its main plant were imported in

1968 and production started in March 1969.

Before the establishment of Steel City beverages Pvt. Ltd. Coca Cola was not much

popular among people of Bihar state as pure soft drink. Because at that time the bottles of

Coca Cola was supplied by the outsiders who were unable to make Coca Cola popular in

Bihar. So after considering the needs and desires of people Mr. Dharma Chand Kamani

brought in Bihar. With this effort Coca Cola become popular among the people of Bihar.

But in 1977 due to the sudden change I the policies of the Government the import

license for the concentrate of Coca Cola was stopped. So Steel City beverages Pvt. Ltd. had

to walk over to Indian Concentrate Companies. They were modem food industries supplied

25
concentrate of double seven and non ice cream soda. In 1983 the company introduced a

cola drink “THRILL” of Mc-Dowell & Co. Ltd. in the place of Double seven and

triangular and in the very next year two soft drink “RUSH” an orange flavored and

“SPRINT” as lemon flavored of Mc-Dowell & Co. Ltd were introduced.

Before some months “Ananda Marketing Pvt. Ltd. was the marketing division of

Lumbini Beverages Pvt. Ltd. But at this time, Lumbini Beverages Pvt. Ltd. is doing

marketing with its own name.

Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made tremendous move

towards the introduction and development of soft drinks industries on the whole, and

North Bihar in particular. It has made production of perfect hygiene and standard Soft

Drink as main objective.

An ideal organizational structure facilities management and the operation of the

enterprise and it help the organization in achieving its goal.

In a simple term in various parts or component are interrelated or interconnected and

this way it is the established pattern or relationship among various function of the

organization in the established manner.

The managing director holds the top position. At present, the managing director of

Lumbini Beverages Pvt. Ltd. is Mr. Charan Khilani. But the overall policies regarding

management decisions and all executives function or performance look after by the day to

day decision and general administration as well as management. The MD has given the power

of attorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who is well

advised by the MD.

26
 The director Mr. Ravi Khilani looks after all functional departments that sales

production, account, personnel and purchase. Though the manager all the functional

departments has specially designated as head of personnel department.

Every department has to report directly to the managing director and is

responsible to his only for working in spite of this all departments is under the control of the

director Mr. Ravi Khilani. Because he is the Chief Executive of the company cited

earlier. The overall organizational structure can be shown as:

27
 OVER ALL ORGANIZATIONAL STRUCTURE OF
LUMBINI BEVERAGES PVT. LTD.

The marketing manager is in charge of all marketing activities i.e. sales promotion,
publicity and advertisement, marketing study and shipping. But the main function of the
marketing is to exercise the control over the channel of distribution.

The marketing manager is assisted by sales executives, city sales executives and
rural sales executives and sales executive of shipping department as follows:-

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 A THEORETICAL FRAME WORK OF CHANNEL OF
DISTRIBUTION

“Marketing channels are sets of interdependent organization involved in the

process of making a product or service available for use or consumption.”

The main objective of the marketing process is to distribute the products to the

actual users. This function involves a number of sub-functions to be performed by a

producer or manufacturer. These two functions are most important first, the creation of

demand is made through the process of advertising and sales promotion activities. On the

other hand the distribution through the channels of distribution. The decision relating to the

channel of distribution is a very important decision from the firm point of view because

the selected channels affect considerable other marketing decision. Such decisions are

of long term nature and exercise their impact on the cost structure of the firm also.

By channel distribution mean the intermediaries or the process through which the

goods products are transferred from the producer to the ultimate users.

Now a day any of the producers possibly do not sell their goods directly to the

final users. There are a lot of intermediaries between producers and consumer, bearing a

variety o f n a m e performing various k i n d s o f f u n c t i o n . Some i n t e r m e d i a r i e s

l i k e 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.

29
 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

 To develop managerial efficiency in distribution organization

The channel of distribution is a structure which organized and presents a choice among

alternative channels of distribution of the different marketing situations faced by retailers,

whole sellers and producers with in the structure. It may be considered as a series of

function which must be performed in order to make producers efficiency.

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

should be treated as a unit of total system of action. The activities of the manufacturer

need to be coordinated with these middlemen used in the distribution of given product.

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

that who-

1. Collects concentrate 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.

30
 DECISION MAKING FOR CHANNEL DISTRIBUTION

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

channel of distribution for a company.

1. He/She must understand the retail and wholesales market and type of middlemen

available in both.

2. He/She must understand the various conflicts which continually exist between and

within the channel.

3. He/She must select the general channel to be used keeping in mind the goals of the

company marketing programme and the job to be done by distribution system.

4. He She must take decision regarding be intensity of the distribution (i.e. The number

of middlemen) to be used each level and each market.

5. He/She must select the specific firms which will handle his product and then

manage the day to day working relationship with them.

6. He/She must determine the methods and the procedure in firms (i.e. use of the

transportation and warehouse facilities and services in firms making programme) in

the physical distribution of the product.

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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

32
 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 i s 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

33
 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.

CHANNEL OF DISTRIBUTION OF LUMBINI

BEVERAGES PVT.LTD.

To make its products available at the right places at the right time in the market, the

sales department of the company pays major attention on controlling the channels of

distribution.

Single type of markets channel is maintained by the company right from its

pioneering stage. The nature of the channel is as follows:-

At first the soft drinks

supplied to the distributors

directly. Retailers or owners of

any outlet can not take the

delivery from company. They

have to take the products from their respective or nearest distributor.

There are about 50 distributors and innumerable number of retail outlets operating

with the company in its entire market areas which contains total Bihar. In all the

important places of entire territory this company has its distributors.

34
 These distributors selected on the basis of assurance given by them regarding the

minimum sales which they have to maintain annually. The selection is also done on the

basis of the financial position and reputation of distributor in the market. As for example in

appointing a distributor first engaged in soft drink business second priority is given to those

people who are in cigarette selling business. Depending upon the market, each

distributor in the initial stage has to deposit some security money.

The retailers are selected by the distributor fixed criteria for the selection or appointment

or retailers from the side of the distributor . Any o n e l i k e P a n w a l a , Cigarettewala or any

other shopkeeper can have the stall for the sale of soft drinks and they are called retailers or

outlet owners. They have to give assurance to the concerning distributor for better sale and

at the time of taking delivery they have to deposit the security i.e. the charges if the empty

bottles with specified retailers purchasing price. The charges if the empty bottles with

specified retailers purchasing price. The distributor at first has to seek the permission of sales

department for the number of cases of soft drinks required by them. After getting the proper

authority from sales department paying therequisite amount either cash or demand draft.

35
 WAREHOUSING

Every company has to store its finished goods until they sold. A strong facility is
necessary because production and consumption cycles rarely match.
Warehousing is not a simply storing activity but a package of services that
enables the smooth running of the industry.
The stores must be in constant touch with the use department in order to provide
uninterrupted services to the manufacture and its decision since working capital is locked up
in the warehousing stores in equal to money.
The stores functions can be organized in the following manner:-
a) To receive raw material components equipments etc.
b) To meet the demand of use department by issuing the order
c) Accounting the transaction properly.
d) Minimizing obsolescence surplus and scrap by right identification and using
correct preservation method.
The company supply finished products frequently to different distributors as per the
demand.
Every distributor keeps a minimum stock of different products of the product line so
that the uninterrupted supply could not affect.
In the industrial sector service of optimization where boils down to any exercise of
optimization where limited available resources are to be distributed equitably.
The problem arises from the material that are in stock the form of capital cost,
storage loss, pilferage obsolescence, insurance, handling, documentation etc. Services level
that can be maintained and hence the concept stores in money should be understood
by every body in the organization.

36
 INVENTORY DECISION

(1) Branding and Packaging

Out of the total market activities some are directly performed and controlled

by “Lumbini Beverages Pvt. Ltd.” itself some are followed according to the

standing instruction of “Pepsi Foods Pvt. Ltd.

So far as the process of branding and packaging is concerned the

“Lumbini Beverages Pvt. Ltd.” Along with the authorized bottle in India adopt the

same pattern.

(2) Wholesaling

Wholesaling includes all the activities involved in selling goods or

services to those who buy for resale or business use. Manufactures use

wholesalers because wholesalers can perform function better and more cost

effectively than the manufacture can. These functions are not limited to selling and

promoting, buying and assortment building bulk barking, warehousing,

transporting financial risk bearing dissemination of marketing information and

provision of management services and consulting.

37
 Like retailers wholesaler must decide on target market, product assortment and

services promotion and place. The most successful wholesalers are those who adopt

their services to meet and target customer’s needs, recognizing that existing

to add value to the channel.

(3) Retailing

Retailing includes all the activities involved in selling goods or services

directly to find consumer for their personal non-business use. A retailer or retail

store is any enterprise which sales volume comes primarily form retailing.

All marketer retailers must prepare marketing plans that include decision on target

market.

So the marketing channels can be viewed as a set of interdependent organization with

high potential for conflict. Then why would any business chosen to become part of

channel system.

38
 MARKETING STRATEGY

Marketing Strategy is the complete and unbeatable plan designed specifically for attaining the

marketing objective of the firm. The market objective indicates what the firm indicates, what the

firm wants to achieves, the marketing strategy provides for achieving them.

The marketing strategy is not just idea. It is a well outlined plan, and there are different ways to

formulating it. Basically formulating of marketing strategy consists of two main steps.

Selecting a target market. Assembling the marketing mix. Actually, the target marketing and

marketing mix together constitute the marketing strategy of the firm.

When the Pepsi food company entered in the Indian soft drink market, the market was already

prevailed by coke and previously it was Parle. Pepsi tried to establish in India with a unique

marketing policy. Pepsi took into consideration of youth segment target market. Though the

advertisement of Pepsi highlighted the style of living of young generation with different walk of

life. Pepsi brought in its advertisement different stalwart’s personalities from fields like young

cine stars, sport stars and famous personalities from different fields. It has attracted the young

generation and of course increase the sale of Pepsi, Pepsi also organized many national and

international sports events to attract the young generation.

39
 MARKETING MIX OF “L.B.P.L.

A product, place, price and promotion (4p’s) that the firm blends to produce the response it

wants in the target market. These are the following 4Ps.

 Products:- That could meet the identified needs of chosen consuming groups.

 Price:- Product price are fixed by company according to competitors product price.

 Place:- It performs various functions like transportation, warehousing, channel

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

 Promotion:- The firm carries out a no. of measures like personal selling, advertising and

sales promotion programmed with view to communicate to the consumer and promoter of

the product.

It is the mechanism to achieve the consumptions of marketing process, striking the level of price

that is accepted to the firm as well as consumer.

40
 PepsiCo Cold Drinks

7UP - Mood Ko Do Lemon Ka Lift

Brand History

7UP, the refreshing clear drink with natural lemon and lime flavour was created in 1929. 7UP

was launched in India in 1990 and its international mascot Fido Dido was used for advertising

in 1992 to position the brand as a cool drink for youngsters. Fido became an instant hit with

his trendy look, laid back attitude and refreshing take on life. During the brand’s early years

in India, 7UP gained market leader status in the lemon lime category by being one of the first

to be nationally distributed as well as being marketed as a healthier alternative to other soft

drinks.

Brand Advantage

For the past 2 years, 7UP’s ambition as a brand has been to capture and own the lemon

refreshment territory within the clear lime category. Lemon has proven to be a clear and

relevant differentiator for the brand. Further, it has allowed the brand to ladder up to an

emotional payoff of uplifting refreshment.

After establishing itself as “The Lemon Drink ", in Jan 2009, 7UP continued to build further

on the theme of mood upliftment with its new tagline "Mood ko do Lemon ka Lift”

41
7UP’s brand communication is premised on the product’s natural lemon flavor , guaranteed to

provide uplifting lemon refreshment that raises one’s spirits.

42
 Mountain Dew -Darr Ke Aage Jeet Hai

Brand History

The main formula of Mountain Dew was invented in Virginia, named and first marketed in

Johnson City, Tennessee and Knoxville, Tennessee in 1948.

In India, Mountain Dew set the soft drink category ablaze in 2003 with their iconic launch

campaign “Cheetah Bhi Peeta Hai”.

Brand Advantage

It is a soft drink that exhilarated like no other because of its daring, high-energy, active,

extreme citrus taste. Challenge, a can do attitude, adventure and exhilaration is deeply

entrenched in its brand DNA and the brand has always celebrated the bold and adventurous

spirit of the youth.

This exhilaration and excitement of Mountain Dew has always been reflected in the high-

adrenaline advertising of the brand that connected it to outdoor adventure.

43
44
 Pepsi - Yeh Hai Youngistan Meri Jaan

Brand History

Pepsi is a hundred year old brand loved by over 200 million people worldwide. The largest

single selling soft drink brand in India is the ubiquitous'socialiser'at every occasion.

 Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi the

single largest selling soft drink brand in India is actually a formula concocted a century ago in

a far away continent.

 1886, United States of America. Caleb Bradman, the man with a plan, got on to formulate a

blockbuster digestive drink and decided to call it Brad’s drink. It was this doctor’s potion that

was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903.

 Pepsi has always played on the front foot and since its inception has come out with

revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the enviable

My Can.

Brand Advantage

 Pepsi has become a friend to the youth and has led many youth cultures. Youngsters over the

generations have grown up with Pepsi and share an emotional connect with it, unlike any

other cola brand. Be it parties, hangouts, or just another day at home, a day is never complete

without the fizz of Pepsi!

 Pepsi, Cricket and Bollywood have been joined at the hip since the beginning. Shah Rukh

Khan, Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena Kapoor, Priyanka

Chopra, Virender Sehwag, M. S. Dhoni, John Abraham, Ranbir Kapoor and Deepika

Padukone are a few celebrities who will go any length for a chilled Pepsi.

45
46
 Mirinda – Weekend Aaye Tho Pagalpanti Chaye

Brand History

Mirinda is an international soft drink brand from Spain that was launched in India in 1991.

Mirinda has always been about a great irresistible orange taste, which is now synonymous

with the brand. These were communicated through our great of “Mirinda Men” in 1996 or

with the campaign of “Taste pe Atka, Mirindaaaa” in the year 2000 or “Taste Aisa Chaye

Character Fisla Jaye” in 2003.

Mirinda then evolved to ladder up the great taste to great fun with another spate of memorable

campaigns of “Fun Ka Naya Mantra, Mirindaaaaa” starring Asin & Zayed Khan in 2007 &

“Pagalpanti bhi Zaroori Hai” campaign with Asin in 2008.

In 2009, Mirinda became synonymous with “Orange” as the core of the brand with the

campaign of “Orange Dikha toh Mooh Bola Mirindaaaaa”.

Brand Advantage

Now when we think Mirinda, we think orange. But this soft drink brand has launched many

other fruit flavours from time to time; Mirinda Lemon was launched in 1998 with memorable

campaign “Zor Ka Jhatka Dheere se Lage” starring with Amitabh Bachchan & Govinda.

Mirinda has also launched many other flavors like Apple & Batberry, as innovative flavor

offerings for the evolving consumer.

In 2008, the brand decided to up the ante on the brand from a being led by physical attribute-

taste, to deliver a brand philosophy that resonates with the audience. Now, Mirinda's bold and

47
vibrant color, great orangey taste and sparkling bubbles encourages one to be more carefree,

spontaneous and playful.

With an endeavor to give our consumers a great tasting product to delight them continuously,

we have reformulated & improved its taste - first in 1996, then in 2002. And what’s more,

Mirinda is now made without any artificial flavor in it!!!

48
49
 Slice - Pure Mango Pleasure

Brand History

Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to

become a leading player in the category.

In 2008, Slice was relaunched with a 'winning' product formulation which made the

consumers fall in love with its taste. With refreshed pack graphics and clutter breaking

advertising, Slice has driven strong appeal within the category.

Brand Advantage

With the launch of “Aamsutra” campaign in 2008 along with a winning taste & most

appealing pack graphics, Slice created disruptive excitement in the category and celebrated

mango indulgence like no other.46

While other players have portrayed mango as a simple and innocent fruit, Slice celebrates the

indulgence and sensuality of consuming a Mango. The creative idea “Aamsutra”

communicates the art of experiencing pure mango pleasure through the taste of Slice.

50
51
 Aquafina - The Purest part of you

Brand History

Aquafina was first launched in USA in the year 1994 and with its unique purification system

and great taste; Aquafina soon became the best selling brand in the country.

In India, Aquafina’s journey began with the Bombay launch in 1999 and it was rolled out

nationally by the year 2000. On the strength of its brand appeal and distribution, Aquafina has

become one of India's leading brands of bottled water in a relatively short span.

Brand Advantage

Aquafina goes through a 5 step state-of-the-art purification process to give consumers pure

water and perfect taste every time.

Aquafina has been built through refreshing and edgy advertising. The ‘What a Body’

campaign has enabled the brand to drive modern, premium, and youthful brand imagery in an

otherwise undifferentiated category.

Bottled across India in 19 plants, Aquafina ensures its availability across more than half a

million outlets. To cater to varied consumer needs and occasions, it is available in various

pack sizes like 300ml, 500ml, 1 ltr, 2 ltr bottles and in bulk water jars of 25lts. 

52
53
 ADVERTISING & SALES PROMOTION IN “L.B.P.L.”

Advertising and sales promotion activities play a vital role in entire marketing efforts. Without

these aspects a quality product can not survive in the market. Advertising and sales promotion

tools are most essential for the modern global marketing. This chapter has therefore been

devoted to the studies of advertising and sales promotional activities in Lumbini Beverage

Pvt. Ltd.

The two basic objectives for carrying out such various promotional activities by Lumbini

Beverages Pvt. Ltd. is “To generate more sales as well as to create and maintain an image of

its product” L.B.P.L. carries out its promotional activities as controlled and integrated

programmes of communication and material design present its soft drink to the perspective

customers. It also helps in communicating the need satisfying of soft drink to facilitate the sales

eventually to contribute towards the profit in long run.

The tools used by L.B.P.L. for fulfilling the various purposes of its promotional activities

are the following:-

 Food ‘N’ Fizz

 Space Club

 Payaas bujhao profit badhao

 Agreement

 GRB (Glass return bottle).

54
 PROMOTIONAL ACTIVITIES (FOR RETAILERS)

Promotional activities consist of various means of communicating persuasively with the target

audience. The important methods are:

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

consumer.

Personal selling:- Where sales representative employed by the firm engage in interpersonal

communication with individual consumers and prospective customers.

Sales promotion:- Where the market utilizes displays, demonstrations, premiums, contests or

similar devices.

Publicity and Public relation:- help to stimulate supportive news items about the firm and its

product that have greater credibility with public than advertisement.

Of all the methods of promotional activities that constitute the promotion mix, sales promotion is

the only one method that makes use of incentives to complete the “Push-Pull promotional

strategy” of motivating the sales force, the distributor and the consumer transacting a sale.

According to “American Marketing Association” sales promotion refers “Those activities

other than personal selling, advertising and publicity, that stimulate consumer purchasing and

dealer effectiveness, such as display, shows and exhibition, demonstration and various other non-

recurrent selling efforts not in ordinary. “Sales promotion” is also known by the name of

“Extra Purchasing Value” (E.P.V.).

55
 Product Performance of Pepsi

 Targeting product comparison

 Product availability

 Pricing of products

 Pepsi Performance in comparison

Comparative Products

SL Major CSD Brands

No. Flavor PCI CCI

1. Cola Pepsi Coca-Cola, Thums Up

2. Clear Lime 7Up, Mountain Dew Sprite

3. Cloudy Lime Mirinda-Lime Limca

4. Orange Mirinda Fanta

56
In above table, I have shown product target in the market. Both companies try to substitute each-

others product in the market. When a company doesn’t fulfill the demand of market then other

companies substitute that product with their own product. In the market, offen it seen that

consumer demands a product according to his desire, but due to lack of supply he switch over to

substitute product. So, companies always want to come out with substitute product for enlarging

their market share.

Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is substitute for 7UP and

Mountain Dew, Fanta is substitute for Mirinda & Limca is substitute for Mirinda Lime.

57
 Products Availability of Pepsi

SL 2000m
Products 200ml 250ml 300ml 330ml 500ml 600ml 1000ml 1200ml
No. l

1. Pepsi √ - √ - - √ - - √
2. Pepsi diet - - - - √ - - - -
3. Pepsi - - - - - √ - - -
Gold
4. Mirinda √ - √ - - √ - - √
5. Mirinda √ - - - - - - - -
Lime
6. M. Sorbet - - - - - √ - - -
7. 7UP √ - √ - - √ - - √
8. M. Dew √ - - - - √ - - √
9. Pepsi Can - - - √ - - - - -
10. 7UP Can - - - √ - - - - -
11. Mirinda - - - √ - - - - -
Can
12. M. Dew - - - √ - - - - -
Can
13. Diet Can - - - √ - - - - -
14. Slice - √ - - √ - - √ -
15. Aquafina - - - - - - √ - -
16. Tropicana √ - - - - - √ - -

17. Everest - - √ - - √ - - -
Lehar

58
 Pepsi Products Price list for Customers

SL
Product 200ml 250ml 300ml 330ml 500ml 600ml 1000ml 1200ml 2000ml
No.
1. Pepsi 8 - 12 - - 20 - - 50
2. Pepsi diet - - - - 20 - - - -
3. Pepsi Gold - - - - - 25 - - -
4. Mirinda 8 12 - - 20 - - 50
5. Mirinda 8 - - - - - - - -
Lime
6. Mirinda - - - - - 25 - - -
Sorbet
7. 7UP 8 - 12 - - 20 - - 50
8. Mountain 8 - - - - 20 - - 50
Dew
9. Pepsi Can - - - 25 - - - - -
10. 7UP Can - - - 25 - - - - -
11. Mirinda Can - - - 25 - - - - -
12. M. Dew - - - 25 - - - - -
Can
13. Pepsi diet - - - 25 - - - - -
Can
14. Slice - 10 - - 22 - - 45 -
15. Aquafina - - - - - - 12 - -
16. Tropicana 12-18 - - - - - 60-82 - -
17. Everest - - 5 - - 12 - - -
Lehar

59
 STUDY ON RETAILERS

Retail Shop type

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

Products

II. M i x Shop : The shop selling many companies

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%

60
 RESEARCH
METHODOLOGY

61
62
 RESEARCH METHODOLOGY USED IN 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.”

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 and Retailers of Patna.

Data Sources

Primary data collection involved distributors, retailers.

Research Approaches : Survey

Research Instrument : Interview

Sampling Plan

Research Design : Exploratory

Sampling Unit : Retailers

Sampling size : 100

Sampling Areas : Lucknow

Sampling Techniques : Simple Random sampling

Contact Method : Personal Interview

In interview schedule I used multiple choice question and ranking system

questions.

63
 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. 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-

 To know about awareness of the PepsiCo products of Lumbini Beverages Pvt

Ltd.

 To know about the factors affect the sale of the Pepsi product of Lumbini

Beverages Ltd .

 To know about the PepsiCo brand product available in the outlet.

64
 SCOPE OF THE STUDY

The main scope of this study is to ascertain the effectiveness of channel of

distribution 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 i t s position. One of t h e important aspects of this

study is also to increase the market segment for the product.

65
LIMITATION

66
67
 LIMITATION

As I was asked to carry on my vocational training I found the following limitations

during my training period. So I could not collect all information regarding my topic.
(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 feed back

68
FINDINGS

69
 FINDINGS OF THE STUDY

 Out of the 100 respondent ,It has been found that 32% percent retailer know about
the Pepsi product through the TV, 46 % retailer know about the Pepsi product
through the Radio , 12% of the retailer know about the product through the
Newspaper ,6% of the retailer know about the product through the friends and 4%
retailer know about the product through the other things .
 It has been found that there are various factors affect the sale of the Pepsi product,
30% respondent say that taste is most factors of the product sale because the Taste of
the Pepsi product is very highly sweet, 16 % of the respondent says that
Advertisement and Presence is also a factor of the Pepsi product, 14 % respondent say
that price is also factor of the sales the product and 12% respondent say that scheme
and others factor also affect the sale of the product.
 It has been found that 30 % distributor visit of Pepsi executive “Daily”, 34 %
distributor visit of Pepsi executive “Alternate Day”, 22% distributor visit of Pepsi
executive “Weekly” and 14% distributor visit of Pepsi executive “Fortnightly”.
 Out of 100 respondents I found 36 % sale of Pepsi on sweet shops that are maximum,
24% sale of Pepsi on the general store, 14% on the restaurants , 10 % on the Betel
shop and 16 % sales on the others shops respectively. Example-Medical Store, Cyber
Café.

 It has been found that 12% Distributor/Retailer are monthly sales (Rs)Less than 5000,
16% Distributor / Retailer are monthly sales (Rs) 5000 to 10000 , 40 % Distributor /
Retailer are monthly sales (Rs) 10000 to 15000 and 32% Distributor / Retailer are
monthly sales (Rs) above 15000.

 It has been found that 22% Pepsi Cola soft drinks are available in the outlet , 12% and
8% Mirinda and Mirinda(L) soft drinks are available in the outlet, 24% 7’Up are
available in the outlet, 16% Slice are available in the outlet because it is a Mango
flavors soft drinks.18% Mountain Dew are available in the outlet.

 It has been found that 38 % retailers told Pepsi company Visi-Cooler use for the Soft
drinks ,24 % retailers told Coca Cola Company Visi-cooler use for the soft drinks ,
22% told that both Visi-cooler ,16% retailers told me own Visi-cooler use for soft
drink.

70
 It has been found that 60% retailers said “Yes” know about the all flavors pack &
wholesale price of Pepsi soft drinks because retailers also sold the product in the
market daily on the price list , 40% retailers said that “No” Know about the all
flavors pack & wholesale price.
 It has been found that 74 % retailers said that company also provide the Sign board /
Display rack by coke company because sign board also use for the protect the
product in a shop.26% retailers said that company not be provide the sign board ,
those retailers use own display rack /sign board for the basically need.
 It has been found that mostly 54 % distributor say “Yes” advertising help in increase
the sales volume of cola because advertisement is the base of the product introduce
first time in the market and 46 % distributor say “No” advertising help in increase
the sales volume of cola.

71
 CHAPTER - 2
DATA ANALYSIS AND
INTERPRETATION

72
 DATA ANALYSIS AND INTERPRETATION

Q. 1 .How you came to know about Pepsi Brand Products?

Mode No. of Respondent Percentage

Radio 32 32%
TV 46 46%
Newspaper 12 12%
Friends 6 6%
Others 4 4%
Total 100 100%

It has been found that 32% percent retailer know about the Pepsi product through the Radio,
46 % retailer know about the Pepsi product through the TV , 12% of the retailer know about
the product through the Newspaper ,6% of the retailer know about the product through the
friends and 4% retailer know about the product through the other things .

73
Q.2. Monthly sales (in Rs.)

Monthly Sales (In Rs) Respondent Percentage

Les than 5000 12 12%
5000 to 10000 16 16%
10000 to15000 40 40%
Above 15000 32 32%
Total 100 100%

It has been found that 12% Distributor/Retailer are monthly sales (Rs)Less than 5000, 16%
Distributor / Retailer are monthly sales (Rs) 5000 to 10000 , 40 % Distributor / Retailer are
monthly sales (Rs) 10000 to 15000 and 32% Distributor / Retailer are monthly sales (Rs)
above 15000.

74
Q. 3.Which brands of soft drinks are available in the outlet?

Soft Drinks Available in the Outlet

Pepsi cola 22%
Mirinda 12%
Mirinda (l) 8%
7’UP 24%
Slice 16%
Mountain Dew 18%
Total 100%

It has been found that 22% Pepsi Cola soft drinks are available in the outlet because the taste
of the soft drinks is very sweet so mostly customer prefer Pepsi Cola, 12% and 8% Mirinda
and Mirinda(L) soft drinks are available in the outlet, 24% 7’Up are available in the outlet,
16% Slice are available in the outlet because it is a Mango flavors soft drinks.18% Mountain
Dew are available in the outlet.

75
 Q. 4. When a customer comes to your shop which brand of soft drinks
He/she demands? (Rank them).

Brand of soft Drinks Respondents Percentage

Pepsi 46 46%
Coca cola 38 38%
Other 16 16%
Total 100 100%

It has been found that 46% customer demand Pepsi because the product of the Pepsi brand is
very sweet and Mango flavor product Slice mostly children like, 38% customer demands
Coca Cola because the product sweet is minimum amount and mostly like sugar Patient and
16% customer demand other Brand (Rank them).

76
Q. 5.Number of carets sold per month of soft drinks.

Number of Carets Sold in Respondent Percentage

per month
0-50 Carets 4 4%
50-100 Carets 22 22%
100-150 Carets 42 42%
150-200 Carets 32 32%
Total 100 100%

It has been found that 42% Retailers told that 100 -150 number of carets sold in per month
because they Retailers belongs to very crud area so customer also be use the soft drinks, 32%
retailers told that maximum 150-200 carets sold in per month, 22% retailers told that 50- 100
carets sold in per month and 4% retailers told that 0-50 number of carets sold in per month
because they retailers also belongs to ruler area.

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Q .6.What is the position delivery of Pepsi products?

Position Delivery of Pepsi No. of Respondent Percentage

product
Very Good 30 30%
Good 42 42%
Bad 18 18%
Worst 10 10%
Total 100 100%

It has been found that 30 % delivery of Pepsi products are very good , 42 % delivery of
Pepsi products are good , 18% delivery of Pepsi product are bad and 10 % delivery of Pepsi
product are worst .

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Q. 7.What is the frequency of the visit of Pepsi executive?
Frequency of the Visit of Pepsi ExecutiveNo. of Respondent Percentage
Daily 30 30%
Alternate Day 34 34%
Weekly 22 22%
Fortnightly 14 14%
Total 100 100%

It has been found that 30 % distributor visit of Pepsi executive “Daily”, 34 % distributor visit
of Pepsi executive “Alternate Day”, 22% distributor visit of Pepsi executive “Weekly” and
14% distributor visit of Pepsi executive “Fortnightly”.

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Q.8.Which types of outlets are selling more?

Types of outlets No. of Respondent Percentage

General Store 24 24%
Restaurant 14 14%
Betel Shop 10 10%
Sweet Shop 36 36%
Other 16 16%
Total 100 100%

Out of 100 respondents I found 36 % sale of Pepsi on sweet shops that are maximum because
every sweet shop use the Visi –cooler for the own product protection and a lot of customer
want to more cool soft drinks. 24% sale of Pepsi on the general store, 14% on the restaurants
because a lot of customer prefer take drink in restaurant because that place is very peace, 10
% on the Betel shop and 16 % sales on the others shops respectively. Example-Medical Store,
Cyber Café.

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 Q .9.Which factors affect the sale most?
Factors affect the sale No. of Respondent Percentage
Advertisement 16 16%
Scheme 12 12%
Presence 16 16%
Taste 30 30%
Price 14 14%
Others 12 12%
Total 100 100%

It has been found that there are various factors affect the sale of the Pepsi product, 30%
respondent say that Taste is most factors of the product sale because the Taste of the Pepsi
product is very highly sweet, 16 % of the respondent says that Advertisement and Presence is
also a factor of the Pepsi product, 14 % respondent say that price is also factor of the sales the
product and 12% respondent say that scheme and others factor also affect the sale of the
product.

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Q. 10.Which Company Visi-Cooler do you have?

Company Visi -cooler No. Of Respondent Percentage

Pepsi 38 38%
Coca Cola 24 24%
Both 22 22%
Own 16 16%
Total 100 100%

It has been found that 38 % retailers told Pepsi company Visi-Cooler use for the Soft drinks
because visi-cooler also provided by the Pepsi company.24 % retailers told Coca Cola
Company
Visi-cooler use for the soft drinks , 22% told that both Visi-cooler use because the shop of
the retailers is very big area ,16% retailers told me own Visi-cooler use for soft drink.

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Q. 11.Do you know about all flavors pack (size) and respective wholesale price Pepsi soft
drinks.

Flavors Pack &Wholesale No. of Respondent Percentage

Price
Yes 60 60%
No 40 40%
Total 100 100%

It has been found that 60% retailers said “Yes” know about the all flavors pack & wholesale
price of Pepsi soft drinks because retailers also sold the product in the market daily on the
price list , 40% retailers said that “No” Know about the all flavors pack & wholesale price.

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 Q . 12. Have you been provided with sign board/display rack by Coke Company?

Provide Sign board / Display No. of Respondent Percentage

Rack By Company
Yes 74 74%
No 26 26%
Total 100 100%

It has been found that 74 % retailers said that company also provide the Sign board / Display
rack by coke company because sign board also use for the protect the product in a shop.26%
retailers said that company not be provide the sign board , those retailers use own display
rack /sign board for the basically need.

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Q.13.Do you think that aggressive advertising further help you to increase the sales volume
of Cola?

Important of Advertising No. of Respondent Percentage

Increase the sales
Yes 54 54%
No 46 46%
Total 100 100%

It has been found that mostly 54 % distributor say “Yes” advertising help in increase the
sales volume of cola because advertisement is the base of the product introduce first time in
the market and 46 % distributor say “No” advertising help in increase the sales volume of
cola.

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CHAPTER 3

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 SWOT ANALYSIS
STRENGTHS:

 Lumbini Beverage Pvt. Ltd. is Franchise Owned Bottling Operation (FOBO) of

world’s most famous soft drinks Pepsi Co.

 LBPL uses state of the art and fully automatic machines and technology for the

production and bottling of soft drinks.

 It has very strong network and built market and currently holds all the parts of the

state.

 It has wide range of product varieties & takes back the leakage, burst bottles etc.

WEAKNESSES:

 No cost cutting program for the products.

 Promotional activities in the rural market are not upto the mark as compared to the

urban market.

 Brand Pepsi in cola flavor is one of the popular lagging behind its nearest

competitor, only due to high sugar content and less thrilling taste.

 Not availability of all the products on demand.

OPPORTUNITIES:

 Although in the cola market there are many competitors, Pepsi still has the

opportunity to enlarge its market share because the cola in the market is quite

monotonic. Most of the end user is young people. There are still some people who do

not like the taste of the cola. So we can try to provide some other taste of cola such as

adding some lemon juice. We can change the flavor in order to meet different taste of

different people.

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THREATS:

 As to the threats, all of us know that Pepsi-Cola and Coca-Cola have had the

competition for about 80 years. Although Pepsi-Cola have won several times during

this competition, the market share of Pepsi-cola is a little bit smaller than Coca-Cola.

There is another threat nowadays. Some local cold drink such as Sudha dairy and

Amul dairy cola have taken their feet in the market.

 One of the products of their competitor in Clear lime & Cloudy Lime flavor as a

very good market share due to its taste.

 Coca-Cola is now spending more and more to boost up the sale & market share.

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CONCLUSION

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 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 channel of Distribution 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.

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(11) Most of the retailer’s especially small retailers have complained that the sales man
doesn’t inform about any sales promotional scheme.

SUGGESTIONS &
RECOMMENDATIONS

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 SUGGESTIONS & RECOMMENDATIONS

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 Patna. For chilled soft drink,
ice box which is compulsory and dredge both should be provided by the
company.

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 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. The vendors can also be provided with uniform by the company in order to give
them visibility.

9. An appropriate name should be given to these tricycles and properly

advertisement thus giving them some sort of identity.

10. 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 .

11. 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.
12. 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.
13. Lumbini beverages Pvt. Ltd. should be provided it’s the rural area also.

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APPENDIX

94
95
 QUESTIONNAIRE

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

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

……………………………………………………………………..........

Contact No: -…………………………………………………………...................

(1) How you came to know about Pepsi Brand Products?

(a) TV (b) Radio (c) Newspaper

(d) Friends (e) other

(2) Monthly sales (in Rs.)

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

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

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

(a) Pepsi Cola (b) Mirinda

(c) Mirinda (L) (d) 7’Up

(e) Slice (f) Mountain Dew

(4) When a customer comes to your shop which brand of soft drinks

He/she demands? (Rank them).

(a) Pepsi (b) Coca Cola

(c) Others

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

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

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

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

(a) Very Good (b) Good

(c) Bad (d) Worst

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

(a) Daily (b) Alternate Day (c) Weekly

(d) Fortnightly

(8) Which types of outlets are selling more?

(a) General Store (b) Restaurant

(c) Betel Shop (d) Sweet Shop

(e) Other

(9) Which factors affect the sale most?

(a) Advertisement (b) Scheme

(c) Presence (d) Taste

(e) Price (f) Others

(10) Which company Visi-Cooler do you have?

(a) Pepsi (b) Coca Cola

(c) Both (d) Own

(11) Do you know about all flavors pack (size) and respective wholesale price Pepsi

soft drinks.

(a) Yes (b) No

(12) Have you been provide with sign board/display rack by Coke Company?

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 (a) Yes (b) No

(13) Do you think that aggressive advertising further help you to increase the sales

Volume of Pepsi?

(a) Yes ( b) No

(14) Any Suggestion on the Pepsi brand…………………………..........

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BIBLIOGRAPHY

99
 BIBLIOGRAPHY

BOOKS

 Kotler, Philip, “Marketing Management”, Pearson Education,12th edition, 2008, New

Delhi.

 Kothari, C.R., “Research Methodology, Second Revised Edition, New age

International Publishers.

MAGAZINES

 Business world, November, December Edition.

 Competition Success Review, November, December.

SEARCH ENGINE

www.google.com

WEBSITE

www.pepsico.com

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