Research Project

On
Study Of Declination of Sales Of Pepsi
Submitted in partial fulfillment of the
Requirements of the M. B. A. Degree Course of Bangalore University

Submitted By
Gaurav Misra
(REGD. NO: 05XQCM6024)
Under The Guidance and Supervision
Mrs. Sumithra Sreenath
Professor, MPBIM
(Internal Guide)

M. P. BIRLA INSTITUTE OF MANAGEMENT

Associate Bhartiya Vidya Bhavan
# 43 Race Course Road, Bangalore-560001
2006-07
 ACKNOLEDGEMENT

This project report is the result of a six-week long study at Pepsi under the
supervision of Mr. Sameer Wali (ADC) and Mr. Kunal Sharma (TDM). We thanks
them for giving us such a opportunity to work with the organization and his trust
which allowed us the freedom and flexibility to study every aspect of the
distribution network and distributors, with hardly any restrictions on the access to
confidential software and data.
We would like to express our gratitude to Mr. Rakesh Shukla (ASDM) who
helped in arranging the project for us and guiding us at every step whenever we
need assistance.
We would like to thanks Mr. R P Gupta for his patience and the precious
time he spent with us in the last four weeks of the study, explaining the
fundamentals of the Microsoft Excel and the implementation part of it in the
company.
We also wish to acknowledge the contribution of the route agents,
distributors and the CE and whose valuable time, opinions and suggestions helped
us immensely.
We must also thank Prof. Sumithra Sreenath for his encouragement before
we started the project and his guidance during the course of the study. Without his
wealth of knowledge, and the reassurance that he would be there for guidance and
support, we would not have been able to gather the courage to embark on this
journey into the unfamiliar world of Marketing.

Last but certainly not the least, we wish to acknowledge the efforts and the
help of all the PepsiCo staff at Bangalore to the entire process and without whose
help this project would not have been possible.

Gaurav Misra
 DECLARATION

I hereby declare that this report titled “Study Of Declination of Sales

of Pepsi ” in Bangalore is a record of independent work carried out by
me towards the partial fulfillment of MBA course of Bangalore
University at M.P. Birla Institute of Management. This has not been
submitted in part or
fulfillment towards any degree.

PLACE: BANGALORE

DATE GAURAV MISRA

(05XQCM6024)
 PRINCIPAL’S CERTIFICATE

This to certify that this report titled “Study Of Declination of Sales

Of Pepsi in Bangalore” has been prepared by Gurav Misra bearing
the Reg. No. 05XQCM6024 under the guidance and supervision of
Mrs. Sumithra Sreenath, Professor, MPBIM, Bangalore.

Place: Bangalore Principal

Date: (Dr. N. S.
Malavalli)
 GUIDE’S CERTIFICATE

This is to certify that the internship Project Report entitled “Study Of

Declination of Sales Of Pepsi in Bangalore” done by Gurav Misra
bearing Registration No.05XQCM6024 is a bonafide work done
carried under my guidance during the academic year 2005-07 in a
partial fulfillment of the requirement for the award of MBA degree by
Bangalore University. To the best of my knowledge this report has not
formed the basis for the award of any other degree.

Place: Bangalore Mrs.Sumithra Sreenath

Date: (Professor MPBIM)
 CONTENT

1. Executive Summary 1

2. Introduction 2

3. Industrial Profile 4

4. Brief Overview of Company 6

5. Scope of Study 11

6. Methodology 12

7. Research Problem 13

8. Research Design 14

9. PRIMARY DATA TABULATION 16

& INTERPRITATION

10. Findings 29

11. Suggestions 30

12. Conclusion 32

13. Bibliography 33
 EXECUTIVE SUMMARY

This project is a study of Pepsi’s the Consumer Behavior of the

population of Bangalore for Pepsi.

Other than general overview of the current distribution network, the

project aims to look into the details of how the decline in sales of Pepsi
product is been triggered by the product of its Competitors and there by
increasing the Consumption of Pepsi.

Based on the findings of a Six-week study, this report envisages revisions

in the company policy.

Finally, the report provides possible solution to the above problems in

the form of recommendations as well as key suggestions for more
consumption of Pepsi.
 INTRODUCTION
Due to the increase in the prices of cold drinks in this summer industry WE going
to lose some part of their market So this particular upcoming condition/situation
leads the companies of this industry to think or do something for compensating
their sale so well with the PepsiCo co. to search in new ideas and areas where they
could make up their sale.

This project is a basically sales Vap in this way the company trying to know why
sales is declining some particular area in Bangalore city as compare Last year.
Bangalore City has the huge potential market. This project is also helpful to identify
the weak outlet and potential customer, once the problem has been identified it is
very easy implement the company sales promotional program and satisfy the
customers.

WHYTHIS PROJECTWAS UNDERTAKEN

Reason for taking this particular project is that we have to try to find out the market
share of the Pepsi and attempt has been made to find out on he basis of sample, why
sales is decreasing in some areas. And it also to find out from the retailers what
quantity should be keep in store as well as in freezer. I was finding out those
reasons and beside this I had to give suggestions.

PROBLEM ENVIRONMENT

It is obvious that Cola market in India at its maturity stage but still the some problem

that the industry is facing like price fluctuation and number of player in the market.

The competitor in the market is going for price-cutting and gains the market share.
The customers are becoming more health consciousness day by day
This is due to the statement of "Swami Ram Dev ji" that in Pepsi there are so many
pesticides.
Tough competition from it solo competitor coca cola.
Distribution channel were not working properly in some area.
Due to the substances found in the bottle damage the reputation of Pepsi and hampered the
sale of the soft drink.
PROBLEM BEING FACED

Low budget for promotional activity in this summer. Communication of scheme which
was given by company was not proper.

Delay in replacement of cooling equipment.

In some of the areas the distribution channel was not working properly.
Some people have conflict with company on some previous issues.

COMPETITIVE SITUATION ANALYSIS As far as the cold drink industry in India is

concern there are only major player that is PepsiCo and coca cola. And the majority of the
market is captured by Pepsi having around 70% of the total market share only reason of
that as far as Bangalore is concern many if the A category of out let or only Pepsi counters
(Only selling Pepsi). But in this summer competitor of the Pepsi (Coca cola) endeavored
hard to Capture is ground by pouring scheme in a market but still it is lagging behind.
 INDUSTRY PROFILE

The Soda Beverage Industry or the Soda Industry is comprised of many different

companies and drinks. Within the Soda Industry is a more specialized market that caters

to Cola drinkers.

The Cola Industry has gone through many changes and each cola product has its origins.

I will begin by first by defining Cola. I will then describe each cola market, and discuss the

Cola Industry history. I will also discuss issues affecting the Cola Industry’s market,

particularly the demand and supply curve. Finally, I will describe the Cola Industry

market structure.

The Coca-Cola Company operates in more than 200 countries, and on a global basis, we

have the most inclusive workforce in the world. Our greatest opportunity is to maximize

this asset

With the wide consumption of soft drinks, the industry offers an enormous yet
untapped potential with its low per capita consumption and the large young
population.

Today, the country has one of the lowest rates of consumption of Cola company
products (only 13 8oz-servings per person per year), compared to Malaysia (33),
Philippines (122) and Singapore (141).

Because soft drinks sales are sensitive to price, every effort has been made to
maintain affordability. In 1997 you could buy 11 small bottles of carbonated soft
drinks or ready-to-drink tea with the daily minimum

wagin Jakarta and 13 in 2001. However, you could buy 205 candies with the same
minimum wage in 1997 and only 136 in 2001.

In terms of job creation opportunity, the soft drink industry has a high employment
multiplier. At 4.025 times, it ranks 14th against the other 66 industry sectors in the
country. This means that for every one job created, or lost, in the soft drink industry
then four will be created, or lost, at the national level.

For every one job created in the soft drink industry, four will be created at the
national level
Eighty percent of soft drink sales are made through retailers and wholesalers, of
which 90% are considered small-scale businesses. For these small-scale
businesses, soft drink products are their most important merchandise - contributing
35% of total sales and generating 34% of profit.

Other supporting industries affected by the activity in the soft drink industry
include glass, bottle closures, transport and media.

80% of soft drink sales are made through retailers and wholesalers

In 1999, 85% of monthly soft drink consumers had an average household income of
less than Rp 1 million (US$ 100) per month. Of these 46% was less than Rp 500,00
(US$ 50)

Seventy-two percent of weekly consumers had an average household income of

less than Rp. 1 million per month. Of these over 40% are either students, partially
employed people or pensioners.

Amongst weekly consumers, soft drinks are consumed as often as syrup and
snack
 Brief Overview of the Company.

Pepsi Cola North America, headquartered in New York, is the refreshment

beverage unit of Pepsi Company Beverages and foods, North America; a division
of Pepsi Company Inc. Pepsi Company Beverages and foods North America also
comprises Pepsi Company . Gatorade and Quaker Foods businesses in the United
States and Canada.

Pepsi Cola North America Pepsi, Diet Pepsi, Pepsi twist, Mountain Dew,
Mountain Dew Code Red, Sierra Mist and Mug Root Beer account for nearly One-
Third of Total soft drinks sales in the United States.

Pepsi Cola North America-Carbonated Beverage portfolio includes

Aquafina, which is the number one brand of bottled water in the United States.
Dole single serve juice and SoBe, which offers a wide range of Soft drinks with
Herbal ingredients. The Company also makes and markets North America. ready to
drink iced teas and coffees via joint ventured with Lipton and Starbucks,
respectively

Pepsi Company Inc is one of the World"s largest food and beverage
companies, The Company business includes:

Frito-Lay snacks.
Pepsi Cola Beverages.
Gatorade sports Drinks.
Tropicana Juices.
Quaker Foods.

Pepsi Company Inc is a diversified consumer products company with 3

Major lines of Business:
1 Beverages (Pepsi Cola):-It is Pepsi"s oldest and largest business. Includes
drinks like Pepsi, Diet Pepsi, Mountain Dew, Slice, Mug. 7UP etc., available in 194
countries.
2 Snack Foods: -It includes the famous Frito-Lay Brand in the United States
and other International Brands (Example: Smith Crisps Ltd., in the UK) available
in 40 Countries.
3 Restaurants: -Includes leading brands like Pizza Hut, Taco Bell and KFC
(Operating in 94 Countries) and some relatively lesser known ones. California
Pizza Kitchen, Chevy now mainly in the U.S.

Pepsi Cola Company was founded in 1903 when Caleb D Bradham, a

Pharmacist, started to market his Beverage intention in North Carolina. Today,
Pepsi Cola is the second largest soft drink producer in the world. Also it has been
ranked 10th most recognized brand name in the world. INDRA NOOYI is the
present Chairman of PepsiCo in U.S.A.

PepsiCo Inc., was founds in 1965 through the merger of Pepsi-Cola

Company and Frito-Lay. Tropicana was acquired in 1998, in 2001, Pepsi Company
merged with the Quaker Oats Company.
Pepsi Company standard of Performance, distinctive competitive strategies
and the high level of integrity of their people.
Pepsi Company had been in the Indian market during the mid-1950 but
pulled out because of the lack of profitability. It returned in 1990 by negotiating a
Joint venture agreement with Tata Industries, and Government owned Punjab Agro
Industries, realizing the rapidly growing incomes of Indian consumers. Rajeev
Bakshi is the present Chairman of PepsiCo India Holdings Pvt. Ltd.
Pepsi0$r Indian market was very wise indeed. The Company today enjoys a
foothold of the Indian Market and its market share surpasses its nearest rival Coca-
Cola.
The Indian soft drink market has been growing rapidly from a billion in
1997 to about 5 billion bottles in 2003. Another thing, which needs not to be
forgotten, is that India China. Further more, many observers have predicted that
India will eventually become an economic giant, thus growing incomes should
support more sales. Initially, Pepsi Company had to accept some limitations:
Limit ownership to 39.9%; place the Local and to export 75% of its concentrate
among others. But later, with liberalization of FDI, these very limitations became
Pepsi Company"" strengths, being the very first to be in the Indian Market, much to
the dismay of Coca-Cola.

Entry of Pepsi in Indian Market

Pepsi foray into the Indian Soft drink industry dates way back to1956.
However, it withdrew from the country in 1961 due to bottling problems.
Its second attempt into the Indian market was much better planned. On
Nov 9, 1987 the Government of India Approval Board (PAB) approved Pepsi
Company country. The then Government regulations forbid the company
from setting up a 100% owned subsidiary, hence it entered the market in
collaboration with VOLTAS INDIA and PUNJAB AGRO. Later with the
economic liberalization in the country, PepsiCo was allowed to acquire the
Stakes of both of its collaborates. Since then, Pepsi has gone to become the
largest selling soft drink brand in the country.
The Indian business unit has an annual sales turnover of Rs.1100
Crore. The Government of India while allowing the entry of Pepsi had put
forth a series of stringent conditions like introduction of latest food
processing technologies, high quota of exports, local partnership, use of
Indianised brand names etc., Pepsi, whose basic intention was to consolidate
its entry into the Indian market decide to cope with the demand and
approached the entire issue strategically and finally succeeded in its mission.
To quote Pepsi had to operate in difficult circumstances our launch
was patchy virulent anti-Pepsi lobby and competitive propaganda made it
difficult , but like most big business, Pepsi foods has been keeping up its
efforts to mobilize support among influential politicians. Pepsi managed to
get quite a few well wishers form among influential among the Member of
the Parliament and ministers friends of the project. Pepsi had

embarked on a massive campaign among politicians of the opposite parties,

the first of its kind by a foreign company in India.
 Pepsi dispatched over 100 video cassettes to key political personality
across all major political parties. The cassettes containing recordings of the
company's initial operations in the state's economic growth. Along with the
cassette, recipients also received a small booklet providing detail of Pepsi's
major achievements and the future plans.
In building political support, Pepsi pledge equity and fairness and to
be judged on the fact and merit. The entry of Pepsi into Indian market is a
good example of an MNC strategically unifying its interest with the demand
of the Government.

PCI operates in India as:

PepsiCo India Holdings Limited (PIHL)
Manufactures and distributes the beverages to the Up Country
Market.
PepsiCo India Marketing Company Limited (PCIM)
Marketing and Distribution / Sales to the local market.

The beverage business is carried out through 3 channels namely:

COBO (Company Owned Bottling Operation)
. UP (minus) Western UP.
. West Bengal.
. Karnataka (minus) NW Karnataka.
. Kerala +South Tamilnadu.
. Mumbai + Rest of Maharashtra.
. Gujarat.

FOBO (Franchisee owned Bottling Operation)

1 Jammu and Kashmir.
2 Rajasthan.
3 Haryana + Delhi.
4 Western UP
5 Goa.
6 Punjab + Himachal Pradesh.
7 Andhra Pradesh.

JV (Joint Venture).
1. Bhutan.

Brands:

Segment Products
Cola Pepsi
Clear Lemon Flavor 7 Up
Cloudy Lemon Flavor Teem, Miranda Lime
Orange Miranda Orange
Juice Slice
Soda Everess
 Scope of the study

The scope is limited to the extent of the place, time, organization and
their information collected during the project. It is done as a part of academic
study. The scope o f the study limited to information supplied by the
Department Head and information collected by standing order and settlement
copies of the company.

The information collected is limited to the academic knowledge

gained by the student during the study of the course.

The study is confined only to PepsiCo India Holdings (Pvt). Ltd. at Unit
Office, Bangalore
 Limitation of the Study

The study is not proposed to be an expert study as it was done by a student

for the purpose of a partial fulfillment of the course in the in plant training, which is
an integral part, in completion and reward of MBA. The Study was conducted in a
short period of six weeks, and so the finding cannot be generalized for all times.

Some of the information's being confidential was not

included in the study. The scope of the study by and large is very vast. It is
difficult to satisfy all the areas; therefore an attempt is made to cover as much as
possible.

Methodology

The data colleted for this report is as follows:

Primary data
Secondary data

Primary data:
The primary data is collected through:
1 Personal observation.
2. Interview with:
• HR Manager.
• Production Dept.
• Sales Accounting Manager.
• Accounts Coordination Manager.
• Managers and Executives of various Department PepsiCo Ltd.
• Team Members of PepsiCo Ltd.

Secondary data:
The secondary data has been collected with reference to various records of
the company, Such as:
1 Website: www.Pepsi.com
2 Company documents
 RESEARCH PROBLEM

To know why the sales decreases in the Bangalore City and what is the market
position of different brands of cola drinks and checking the loyalty level of retailer
specially for those who have having their card account.

RESEARCH OBJECTIVE

On basis of problems have been mentioned above the survey has been done it has been
attempted to discover the possible reason factor that influences the purchasing decision of
Pepsi, which kind of flavor do retailer prefer to buy. What is market share of Pepsi and
what is reason for purchasing different flavor of Pepsi by the retailer.

Seek the general perception of the retailer towards different flavor o Pepsi.
To find the consumption of different Pepsi flavor on the basis of the sample.
To know choice of the retailer as well as the customer.

INFORMATION REQUIREMENT

The required information has been gathered directly from the retailer who is selling the
different flavor of the Pepsi. So the data is primary. For some information like competitive
situation analysis the data has been taken from the net. So for gathering information he
primary as well as secondary both types of data have been used.

SOURCE OF DATA

The data has been taken from following two sources

Directly from the retailer.
From Internet
 RESEARCH DESIGN

Research design is the step-by-step process in which the research work ha been
carried
out.
Following are the steps in which my research work has been carried out:

1) Research problem has been defined, which is "to know the market position
of different cola brands in the market and to know the perception of the
retailer towards different brands available in the market."
2) Some secondary data has been gathered from the different sites.
3) A questionnaire has been prepared for taking the response from th
buyer of Pepsi drink.
4) An analytical study of the gathered data has been performed.

5) For analytical study bivariate analysis, bar graph and pie charts hav
been taken as the analytical tool.

6) And at last I have given the conclusion and some suggestions.

RESEARCH INSTRUMENT USED

Questionnaire, as the research instrument has been taken.

The different research instrument for gathering information may be:

Questionnaire
Conducting interview
Using the secondary data

• Observation and through the experience Here as per the requirement I have used
questionnaire so that the data directly from the retailer, can be accumulated.
Sampling Technique

Convenient sampling technique has been used as per the convenience and requirement of
the project.
Non-Disguised, Structured Technique:
The structured questionnaire provides performance i.e. more reliable and it reduces the
chances for interviews to the specific results through different phrasing of the questions.
Data obtained is easier to tabulate and interpret.

Sampling methods :

Sample design is a definite plan ofn obtaining some items from the whole population. The
sample design used in this project is two state sampling i.e. cluster and convenience .

SAMPLE SIZE

The sample size has been taken 150.

FIELD WORK-METHOD FOR DATA COLLECTION

The required information has been gathered directly from then retailer. So the data is
primary. For some information like competitive situation analysis the data has been taken
from the net. So for gathering information the primary as well secondary both type of data
has been used. The details of data collection in this respect are as follows:
1 DATA COLLECTION APPROACH:-Survey method
2 DATA SOURCH:-Primary data from Retailers and Distributors.
Secondary Data from Internet.

3 CONTACT METHOD:-Personal
4 FIELD WORK:-Field work consisted of Visits

ANALYTICAL TOOLS USED

Histogram
Pie chart
Percentage
LIMITATIONS

1 For my convenient the sample size 30 has been taken which is quite small.
2. Unclear response by the retailer.
3 Lack of time availability.
4 Limited size of the questions as per the convenient of the respondents.

SAMPLE PROFILE
The sample of the survey was the Consumer were from the Bangalore region.

Sample Size150Customers.

PRIMARY DATA TABULATION & INTERPRITATION

1) STATUS OF OUTLET

OUTLET FREQUENCY
COKE 6
PEPSI 12
MIXED 132

4%

OUTLET PERCENTAGE
COKE 4%
PEPSI 8%
MIXED 88%

INTERPRETATION: There were 150 outlets where survey was done and 8%
outlets were of Pepsi and 88% were mixed outlet.
2) KIND OF OUTLET:

KIND OF OUTLET OUTLET

GROCERY 61
CONVENIENCE 33
CANTEEN 5
EATEARIES 49
LEISURE 2

KIND OF OUTLET %AGE OF OUTLET

GROCERY 41%
CONVENIENCE 22%
CANTEEN 3%
EATERIES 33%
LEISURE 1%

INTERPRETATION: It was found that there are 41% outlets was

grocery outlet and 22% outlet was eateries.
3) FREEZER STATUS:

FREEZER FREQUENCY
OWN 56
PCI 23
CCX 19
PCI+CCX 18
PCI+OWN 14
OWN+CCX 5
OWN+PCI+CCX 2
ICE BOX 7
NONE 13

FREEZER FREQUENCY
OWN 38
PCI 15
CCX 13
PCI+CCX 12
PCI+OWN 9
OWN+CCX 3
OWN+PCI+CCX 1
ICE BOX 5
NONE 4

INTERPRETATION: It was found that there are 37% outlets were

having own freezer and only 15% outlets were having Pepsi freezer.
4) DIFFERENT SIZES OF FREEZER IN THE MARKET-

PCI CCX OWN

INTERPRITATION-It was found that out of 166 freezers 51 were of pepsi.

5) COLD STOCK AVAILIBILITY:

QUANTITY PCI CCX NO

OF
OUTLET
>1 C/S 82 84
1-3 C/S 53 49
<3 C/S 9 5
TOTAL 144 138

>1 C/S 1-3 C/S <3 C/S

INTERPRITATION: It was found that 82 outlets were keeping less than one C/S stock
which is slightly less than the coke cold stock and 53 outlets were keeping cold stock
between one to three which is less than coke cold stock and lastly nine outlet were keeping
cold stock more than three which is 1.5 times more than coke cold stock.
6) QUANTITY KEEPS IN SHOP:

FREQUENCY
QUANTITY PCI CCX
<2 C/S 96
2-4 C/S 31 62
5-10 C/S 68 51
11-15 C/S 23 14
16-20 C/S 72
>20 C/S 63

C/S C/S C/S 15 20 C/S C/S C/S

FREQUENCY
QUANTITY PCI CCX
<2 C/S 6.25 4.35
2-4 C/S 21.53 42.75
5-10 C/S 47.22 36.95
11-15 C/S 15.97 10.14
16-20 C/S 4.86 3.62
>20 C/S 4.17 2.17

INTERPRITATION It is found that only 6.25% outlets were keeping less than 2
c/s in his stock which was more as compare to coke outlets and 47.22% outlet were
keeping stock between 5 c/s to 10 c/s which was more than coke outlet and lastly
only 20<c/s outlets were keeping stock more than 20 c/s which is more than coke
outlet
7) PEPSI PURCHASE FROM:

OUTLET FREQUENCY
PEPSI BUS 101
OTHER OUTLET 11
FAT DEALER 32

PURCHASE FROM FREQUENCY

PEPSI BUS 70%
OTHER OUTLET 8%
FAT DEALER 22%

INTERPRETATION: There were 70% outlets were purchasing from the Pepsi
bus and 32% were from whole seller.
8) ON WHICH TIME PURCHASING MORE PEPSI:

PURCHASING MORE PEPSI FREQUENCY

DURING SCHEME PERIOD 103
WHEN CO.PROVIDE GIFT 16
BOTH 25

PURCHASING MORE PEPSI FREQUENCY

DURING SCHEME PERIOD 72%
WHEN CO.PROVIDE GIFT 11%
BOTH 17%

INTERPRETATION: There were 72% outlets were purchasing Pepsi during

scheme time.
9) NUMBER OF CARD HOLDER :
FREQUENCY

RESPONSE PCI CCX

YES 32 12

NO 112 126

TOTAL 144 138

OUTLET

IF NO THEN WHAT REASON FOR NOT HAVING PEPSI CARD

ACCOUNT.

REASON FREQUENCY
LOCATION 42
VOLUME TARGET HAS NOT COMPLETED 59
CONFLICT WITH PEPSI 5
NOT INTERESTED 8

LOCATION

VOLUME TARGET HAS NOT COMPLETED CONFLICT

INTERPRETATION: It is found that only 32 outlets were having monopoly and 112
outlets were having any account which is more as compared to coke.

10) DIFFERENT STATUS OF FLAVORS WHICH IS SELLING

MOSTLY:

FLAVORS PERCENTAGE
PEPSI/COKE/THUMPS UP 45% 24% 31%
MIRINDA/FANTA 69% 31%
SLICE/MAAZA 32% 68%
DEW/7-UP/SPRITE 74% 8% 17%

INTERPRETATION: It is found as far as un-cola segment is concerned dew is

leading the market with 74% of the sales. and in food based flavor maaza is having
the greater market share and in the lemon flavoured cold drinks mirinda is leading
and in the cola brand pepsi is having only 45% share and rest of the cola market
captured by coca cola and thumps-up.
11) SUPPLY OF PEPSI

RESPONSE FREQUENCY

YES 63

NO 81

INTERPRETATION: It was found that 44% outlet were having problem with the
supply of Pepsi.
12)SIZE OF THE PEPSI FREEZER IS ACCORDING TO THE
CONSUMPTION OF COLD STOCK?

RESPONSE FREQUENCY
YES 38
NO 106

26%

YES

NO

74%

INTERPRETATION: It was found that 26% outlets were having problem with
freezer. Their freezer was not according to their needs.
13) REASON FOR LOW SHARE:-

FREQUENCY
REASON YES NO
GIFT 14% 86%
CREDIT 13% 87%
GLASS 3% 97%
SIGNAGE 24% 76%
SCHEME 45% 55%

Interpretation:-it is found that 45% outlets were having problem with scheme.
And 24% outlets were having problem with the signage.
 FINDINGS

%
1 There were 150 outlets where survey was done and there were 8 outlets of
Pepsi and 88% outlets were mixed outlet.
2 It was found that 37% outlets were having own freezer and only 15% outlet
were having Pepsi freezer.
3 It was found that 82 outlets were keeping less than one C/S stock which is
slightly less than the coke cold stock and 53 out let were keeping cold stock
between one to three which is less than coke cold stock.
4 It was found that 70% outlets were purchasing Pepsi from Pepsi bus and
32% outlets were purchasing Pepsi from fat seller.
5 It was found that only 32 outlets were having monopoly and 112 outlets
were not having any account which is more as compare to Coke.
6 It was found as far as un-cola segment is concern Dew is leading in the
market with 74% of the sales. And in food based flavor MAAZA is having the
greater market share and in lemon flavored cold drinks MIRINDA is leading and in
cola brand Pepsi is having only 45% share and rest of the cola market captured by
coca cola and thumps-up.
7 It was found that 44% outlets were having problem with supply of the Pepsi
products.
8 It was found that 23% outlets were having problem with their freezer. Their
freezer size was not according to their need.
9 It was found that 45% outlets were having problem with scheme. And 24%
outlets were having problem with signage.
 SUGGESTION

Proper supply of the products can be made through the Improvement of:-
• Production: -Production should be increased so that th availability of the
products may be at its maximum limit in warehouses and then it can be
supplied to distributors an distributors can supply to the retailers at proper
time.
• Distribution Channel: -Distribution channel related to compare should be
improved. We should adopt that distribution channel which has very less no.
of intermediaries.
• Information Technology: -Information technological connection should be
improved. Latest technological devices should b used by each member who
is related to the company, eve dealers, distributors, sub-distributors and the
retailers who have monopoly related to the products of Pepsi Company.
• Transport Facilities: -Transport facilities should be improved t the company.
Good motors and tempo should be used by the distributors also so that they
can supply the products in the market timely.

►Each type of flavors should be produced by the company in sufficient amount.

►The filling of the bottle should be carefully and after that each bottle should be
checked carefully and attentively.
►Such type of mistakes should be improved by the company through the
observation of each bottle carefully.
► The production and supply of the flavors which are preferred by the consumers
should be more and more so that profit and consumers can be generated.
► The product which demand is very less, the company should provide a scheme
with that products so that the consumers may be attracted toward it.
► The retailers who are selling only the products of Coke, they should bi given
some extra schemes & avarice so that they may be excited for the selling of the
products of Pepsi.
► Sometimes distributors delay in the distribution of schemes. Such type of
mistakes should be checked by the officers of the company.
► Sometimes it is found that when the demand of the products (such a 7-Up and
Dew) is high in the market then there is the lack in supply of products in the
agency. In such cases the consumers purchase other products (such as Thumps-Up
& Coca-Cola).
► So the availability of different types of products in agencies should b at its
maximum limit.
► The information technological connections among the company warehouses and
distributors (agencies) should be improved so then condition of demand and supply
of the products in the market can be known recently or when it is required.
► Each distributor has at least 2 or 3 tempo or other motors for the distribution of
the products so that he may be able to supply well and timely in the market.
 CONCLUSION

ƒ Most of the retailers complained about the service of Pepsi as the stock they
order does not reach in time i.e. Delivery time, stock shortage.
ƒ Fat dealer are big threat to the company as they are providing Pep: product in
rates which is much lower than company hence retailer prefer buying from
them.
ƒ Every outlet demand monopoly.
ƒ There was a great demand of Dew in some areas but it was not properly
supplied.
ƒ Majority of retailers prefers to by Pepsi in bulk when company provides
scheme.
ƒ Cooling equipment was also problem for the company because the problems
like replacement; repair was not properly solved during the peak
 Select Bibliography

Web Sites
www.pepsico.com
www.pepsiworld.com
www.adexindia.com
www.//en.wikipedia.org/wiki/pepsi-cola
www.cocacola.com
www.pepsizonemusic.com
www.pepsi.com/home.php
www.pepsiarena.com
www.kotlermarketing.com

Company details: Records of PepsiCo.

Brochures.
Files.
Philip Kotler # Marketing book