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“STUDY TO EXPLORE OVERALL FUNCTIONING & MARKET POSITIONING OF PEPSICO INDIA”
This study titled as above aims at exploring the strategies followed by PepsiCo India to manage its market position and functioning both internal as well as external since it started its operations in India. Thus to explore what changes PepsiCo India is bringing in order to increase its visibility and market presence to tackle the ever increasing hold of Coca Cola on the Indian beverage market. This study aims to explore the overall functioning and position of PepsiCo India in the marketplace. It also aims to know customer perception regarding PepsiCo India. To know about these facts this research project primarily focus on relationship management of PepsiCo India‟s main carrying and forwarding agency Varun beverages limited. To know the overall functioning of PepsiCo India the sales and distribution system of Pepsi India was studied, which is considered to be one of the strongest not only in the country but also worldwide. This project also covers a detailed observation and study of the VISI-PURITY campaign and the various retail initiatives in Agra markets primarily New Agra, Bhagwan Talkies, Dayal Bagh, Deewani Crossing and Hari Parwat.
INTRODUCTION & OBJECTIVES
Pepsi is one of the most well-known brands in the world today available in over 160 countries. The company has an extremely positive outlook for India. "Outside North America two of our largest and fastest growing businesses are in India and China, which include more than a third of the world‟s population." (PepsiCo‟s annual report, 1999) This reflects that India holds a central position in Pepsi‟s corporate strategy. India is a key market for PepsiCo, and at the same time the company has added value to Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three focus areas – Soft drink concentrate, snack foods and vegetable and food processing. Faced with the existing policy framework at the time, the company entered the Indian market through a joint venture with Voltas and Punjab Agro Industries. With the introduction of the liberalization policies since 1991, Pepsi took complete control of its operations. The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flown in.
To understand the business and competitive environment in which the organization is operating. To explore what changes PepsiCo need to bring in order to increase its visibility and market presence to tackle the ever increasing hold of Coca Cola on the Indian beverage market. To analyze and understand the market position of the organization viz – a – viz competitors. To do the detailed study of working of Marketing & Sales Department of PepsiCo India in Agra.
COMPANY PROFILE: PEPSICO
PepsiCo, Inc. is one of the world's largest food and beverage companies. It was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the world‟s fifth-largest food and beverage company, with 15 brands – each generating more than $1 billion in annual retail sales. PepsiCo‟s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people. The company's principal businesses include:
Frito-Lay snacks Pepsi-Cola beverages Gatorade sports drinks Tropicana juices Quaker Foods
The PepsiCo Company‟s soft drinks include Pepsi, Mountain Dew, Mirinda, 7up and Slice. It owns Frito-Lay, the world's #1 maker of snacks such as corn chips (Doritos, Fritos) and potato chips (Lay's, Ruffles). Cola is not the company's only beverage: PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices (licensed) and Lipton ready-to-drink tea (licensed from Unilever). Its Quaker Foods division offers breakfast cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). Wal-Mart is PepsiCo's largest customer, accounts for 9% of sales.
The company announced a major restructuring in 2007, splitting its two business units (PepsiCola North America and PepsiCo International) into three: one for US food, a second for US drinks, and a third for food and drinks abroad. CEO Indra Nooyi said that due to the company's healthy growth in recent years, PepsiCo is approaching a size that can be better managed as three units rather than two. PepsiCo International includes business in the UK, the rest of Europe, Asia, the Middle East, and Africa.
2005 was worth about $1. Shareholders: As of February 11.16 2007 1. subject to approval by the Board of Directors. Cash Dividends Declared: The closing price for a share of PepsiCo common stock on the New York Stock Exchange was the price as reported by Bloomberg for the years ending 2006–2010. assuming the reinvestment of dividends into PepsiCo stock.65 2009 1.255 on December 31.6 percent.000 investment in stock made on December 31. Year Cash Dividend ($ per share) 2006 1.89 per share for the year 2010. May. July and November and paid at the end of March. Company provided $1.Common Stock Information Stock Trading Symbol: PEP Stock Exchange Listings: The New York Stock Exchange is the principal market for PepsiCo common stock. 2011.425 2008 1. which is also listed on the Chicago and Swiss Stock Exchanges. The dividend record dates for these payments are. This performance represents a compounded annual growth rate of 4. Inc. Fig 1: Share Performance at NYSE 4 . 2010. Past performance is not necessarily indicative of future returns on investments in PepsiCo common stock. June and September and the beginning of January.700 shareholders of record.775 2010 1. The company has paid consecutive quarterly cash dividends since 1965.89 Stock Performance: PepsiCo was formed through the 1965 merger of Pepsi-Cola Company and Frito-Lay. Dividend Policy: Dividends are usually declared in late January or early February. A $1. there were approximately 165.
and juice based drinks – Tropicana 5 . by delivering performance with purpose. and stakeholders. through our talented people. isotonic sports drinks . 7 UP. hydrating and nutritional beverages such as Aquafina drinking water." Sustainability Vision "PepsiCo‟s responsibility is to continually improve all aspects of the world in which we operate – environment. PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.$700 million since the company was established in the country. delighting consumers by best meeting their everyday beverage needs. Tropicana100% fruit juices.S. And in everything we do. The Company has invested heavily in India making it one of the largest multinational investors. PepsiCo nourishes consumers with a range of products from treats to healthy eats.PEPSICO INDIA Mission "To be the world's premier consumer products company focused on convenience food and beverages. snack food and exports business and to support the operations are the group's 43 bottling plants in India." Vision "To build India‟s leading total beverage company. in addition to low calorie options such as Diet Pepsi.000 people and indirect employment to 60. Mirinda and Mountain Dew. social.000 people including suppliers and distributors. of which 15 are company owned and 28 are franchisee owned. PepsiCo India‟s expansive portfolio includes iconic refreshment beverages Pepsi. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees. which deliver joy as well as nutrition and always. fairness and integrity. economic – creating a better tomorrow than today" “Tomorrow better than Today” Overview PepsiCo entered India in 1989 and in the span of a little more than a decade it became the country's largest selling soft drinks company. The group has built an expansive beverage.Gatorade. PepsiCo provides direct employment to 4. our business partners and the communities in which we operate. we strive for honesty. good taste.
It manufactures Lay‟s Potato Chips.Nectars. As part of its sustainable development initiatives. The heads of these divisions report directly to the CEO. administering medical camps in villages. The FOBO‟s also report to the regional heads apart from the COBO‟s. Uncle Chips and traditional snacks under the Kurkure and Lehar brands. Dukes Lemonade and Mangola add to the diverse range of brands. is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. PepsiCo‟s foods company. water conservation recycling and the reduction of effluent discharge. Tropicana Twister and Slice. The heads of these divisions are in charge of their respective areas and are accountable for the proper functioning of all the regions. PepsiCo India has been a committed leader in the promotion of rain water harvesting. Strategic Divisions PepsiCo India consists of different divisions that include Beverage division. The company‟s high fibre breakfast cereal. Frito-Lay. Performance with Purpose means delivering superior financial performance at the same time as we improve the world. PepsiCo stays dedicated in its endeavor to develop community outreach programs by supporting rural water supply schemes. Local brands – Lehar Evervess Soda. providing computers to rural schools and creating opportunities for women in rural areas through vocational training as an alternate means of livelihood. Quaker Oats. PepsiCo has also established zero waste centers and PET recycling supply chains and assisted victims of natural disasters. 6 . Ltd.). Performance With Purpose Performance with Purpose articulates PepsiCo India's belief that its businesses are intrinsically connected to the communities and world that surrounds it. These divisions work as separate SBU‟s and have their separate management. and low fat and roasted snack options enhance the healthful choices available to consumers. Snack food division and the Restaurant division (Yum Restaurants India Pvt. PepsiCo India divided its beverage division into different operating divisions. Cheetos extruded snacks.
PEPSICO INDIA WITH RKJ GROUP
Being the best in everything we touch and handle.
Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions.
It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Our services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to expertise and leadership in the fields of education, food and beverages. The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only. Varun Beverages Ltd. is the flagship company of the group. The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company. The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo‟s centennial year celebrations at Hawaii, USA.
INDUSTRY ANALYSIS: FOOD & BEVERAGE
India is the world‟s second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The food
processing industry is one of the largest industries in India-it is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect ingredient for any industry -large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. Increasing incomes are always accompanied by a change in the food basket. The proportionate expenditure on cereals, pulses, edible oil, sugar, salt and spices declines as households climb the expenditure classes in urban India while the opposite happens in the case of milk and milk products, meat, egg and fish, fruits and beverages. For instance, the proportionate expenditure on staples (cereals, grams, pulses) declined from 45 per cent to 44 per cent in rural India while the figure settled at 32 per cent of the total expenditure on food in urban India. A large part of this shift in consumption is driven by the processed food market, which accounts for 32 per cent of the total food market. It accounts for US$ 29.4 billion, in a total estimated market of US$ 91.66 billion. The Confederation of Indian Industry (CII) has estimated that the foods processing sectors has the potential of attracting US$ 33 billion of investment in 10 years and generate employment of 9 million person-days. Food processing is a large sector that covers activities such as agriculture, horticulture, plantation, animal husbandry and fisheries. It also includes other industries that use agriculture inputs for manufacturing of edible products.
The Government has formulated and implemented several Plan Schemes to provide financial assistance for setting up and modernizing food processing units, creation of infrastructure, support for research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector. The Ministry of Food Processing, Government of India indicates the following segments within the Food Processing industry: Dairy, fruits & vegetable processing Grain processing Meat & poultry processing Fisheries Consumer foods including packaged foods, beverages and packaged drinking water.
Though the industry is large in size, it is still at a nascent stage in terms of development of the country's total agriculture and food produce, only 2 per cent is processed. The industry size has been estimated at US$ 70 billion by the Ministry of Food Processing, Government of India. The food processing industry contributed 6.3 per cent to India‟s GDP in 2003 and had a share of 6 per cent in total industrial production. The industry employs 1.6 million workers directly. The industry is estimated to be growing at 9-12 per cent during the period 2002 to 2007.
which is currently around 2 per cent of total production will increase to 25 per cent by 2025. Table: Segmentation of different sectors in food processing industry 10 . Fruit & vegetable processing.Value addition of food products is expected to increase from the current 8 per cent to 35 per cent by the end of 2025. The food processing industry in the country is on track to ensure profitability in the coming decades. The sector is expected to attract phenomenal investments of about Rs 1.400 billion in the next decade.
petrol prices in the country are now being regularly aligned with international prices following decontrol of the price mechanism and this is having a bearing on overall inflation in this broad category.1 in May. Despite large scale tightening of the monetary policy by the RBI and other steps taken by the government. It was registered 9. Inflation in this segment is being driven by high and rising prices of “Fuel and Power”. The buildup in prices in many of these industries is largely due to increasing cost pressures which manufacturers are now finding difficult to absorb.3 is seen by the “Manufacturing Products” sector.MACROECONOMIC INDICATORS Inflation: The inflation situation in the economy continues to be a cause for concern. Table: WPI based Inflation – YOY growth in Percent Foreign Direct Investment: With inflation remaining stubbornly high. growth slowing down due to aggressive monetary tightening by RBI and the government throwing limited light on how the fiscal deficit target of 4.6 percent for the current year would be achieved. The high inflation rate of 7. Table: Foreign Direct Investment Flows in US$ Million Percent 11 . inflation continues to remain close to the double digit mark. investors waiting and watching before the domestic situation improves. 2011.
Aerated Soft Drinks Two of the biggest global brands in this segment are well established in India. changes in consumer lifestyles leading to demand for convenience and availability of various packaged sizes to suit different needs have led to a spurt in growth and these trends are expected to continue to fuel demand in this sector. By size. with the organized sector holding 48 per cent of the share. pickles form the strongest category. While products like juices and pulp concentrate are largely manufactured by the organized sector. 56 units are engaged in manufacturing beer under license from the Government of India. Penetration levels of aerated soft drinks in India are quite low compared to other developing and developed markets.9 million litres per annum. after packed tea and packed biscuits. Alcoholic Beverages India is the third largest market for alcoholic beverages in the world. The demand for spirits and beer is estimated to be around 373 million cases per annum. indicating a potential for growth through increased penetration of the domestic market. sauces and squashes. Most of the units engaged in above are currently export oriented. There are 12 joint venture companies producing grain based alcoholic beverages that have a combined licensed capacity of 33. Soft drinks constitute the third largest packaged foods segment. the unorganized sector‟s foothold is in the traditional areas of processed items like pickles. Packaged Drinking Water Trends such as shortage of drinking water in the large metropolitan cities.OVERVIEW: BEVERAGE INDUSTRY Juices Fruit and vegetable processing in India is almost equally divided between the organized and unorganized sectors. 12 . an indication of further potential for rapid growth. Domestic consumption of processed fruits & vegetable products is low. The government expects the processing in this sector to grow to 10 per cent in 2010 and 25 per cent of the total produce by 2025.
Salient feature of the act is that FSSA will be aided by several scientific panels and a central advisory committee to lay down standards for food safety. creation of infrastructure. Based on the recommendations of the GoM the ministry of food processing in order to rationalize the multiplicity of food laws enacted the Food Safety & Standard Act (FSSA). Most of the processed food items have been exempted from the purview of licensing under the Industries (Development and regulation) Act. beer and those reserved for small-scale sector subject to certain conditions. except items reserved for small-scale sector and alcoholic beverages. Automatic approval for foreign equity up to 100 per cent is available for most of the processed food items except alcohol. thirteen different laws were applicable on the food and food processing sector. The government has therefore been focusing on commercialization and value addition to this sector through a number of regulatory and fiscal incentives. 2006 Till the year 2005. pesticide residue. 2006.GOVERNMENT POLICIES & REGULATIONS The importance of the sector is enhanced by the fact that over 70 per cent of the population depends upon agricultural activity for livelihood. support for research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector. 24 per cent foreign equity is permitted in the small-scale sector. contaminants. These standards will include specifications for ingredients. 1951. Quantitative restrictions were removed in 2001 and Union Budget 2004-05 further identified 85 items that would be taken out of the reserved list Food Safety and Standard Act. Food processing industries were included in the list of priority sector for bank lending in 1999. biological hazards and labels. The Centre has permitted under the Income Tax Act a deduction of 100 per cent of profit for five years and 25 per cent of profit in the next five years in case of new agro processing industries set up to package and preserve fruits and vegetables. The Government has formulated and implemented several schemes to provide financial assistance for setting up and modernizing of food processing units. 13 .
juices. In India only combined annual revenue is more than $70 billion. the main ingredient of sodas. The two-tiered structure is most efficient for national companies with large volume. labeled. corn syrup (sugar). Sodas account for about 60 percent of the market. catering to local tastes.000 companies that manufacture and distribute beverages. Most are local or regional manufacturing and bottling operations with annual revenue under $100 million. The manufacture and distribution of most national soda brands. following strong consolidation in the past decade. is a twotiered process. CocaCola and PepsiCo hold more than 50 percent of the market. which are capped. the flavored syrup. Competitive Landscape: Demand for non-alcoholic beverages is driven by consumer tastes and demographics. bottled waters. Operations & Technology: Nonalcoholic beverages include sodas (carbonated soft drinks. In a typical bottling operation. The primary manufacturer produces flavored syrup called concentrate that is sold to local bottlers who manufacture and distribute the finished product. Only a few other companies have annual revenue above $500 million. is expensive to 14 . and the finished soda product is poured into bottles or cans. and a large variety of mixtures. The profitability of individual companies depends on effective marketing. Products. carbon dioxide gas is injected. and filtered water are mixed in appropriate proportions. because the manufacturing process is simple and because water. Small companies can compete by producing new products. or CSD).MARKET STRUCTURE The soda drink and bottled water industry includes more than 3. and packaged. or selling at lower prices. with average annual revenue per production worker close to $1 million. Large manufacturers have economies of scale in production and distribution. including Coke and Pepsi.
In addition to producing canned and bottled soft drinks. restaurants. For soft drink bottlers. and wholesalers sell products through a variety of channels. or plastic bottles made from polyethylene terephthalate (PET). bottlers. including warehouses and fleets of specialized delivery trucks. large manufacturers sell sweetened syrups to restaurants and other retailers that produce the finished product at the point of sale by mixing the syrup with carbonated water to produce fountain products. Sales & Marketing: Beverage manufacturers. The marketing approach to each of these channels is quite different and often includes promotional spending. Soda bottlers typically own local vending machines.ship and is available locally. such as food and convenience stores. the major raw materials. aside from the flavored syrup.glass bottles. mass merchandisers. and institutions. including schools and colleges. Bottlers frequently operate sizable distribution systems. aluminum cans. 15 . The industry depends on technology for developing new products in the labs and packaging product at the plants. Large manufacturers may also sell directly to national accounts and usually advertise on national or regional TV and in print. Graph: Non Alcoholic Drinks Consumption (by Age) CHANNELS: The beverage industry is a multi-channel industry. Smaller companies combine the syrup production and bottling operations in one plant. produces over 3 billion. Most bottling plants are highly automated with a combination of mechanical automation and computerized robotics. Coca-Cola produces more than 4 billion cases of soft drinks per year while PepsiCo. are corn syrup and containers -. vending machines.
It plays a fundamental role in beverage distribution Possess critical information regarding individual points of sale in terms of volume. if exploited. assortment. taking into account differing points of sale and diverse customer needs. etc. Due to the complexity of the marketplace. Due to the complexity of the beverage supply chain. products and services coherently within the various channels. conflicts of interest frequently arise between beverage manufacturers and beverage distributors: Soft drink manufacturers profit from increased sales at the expense of distributors‟ margins Soft drink distributors profit from positive local pricing environments. which. the entire logistical chain must be able to sustain brands. making them a substantial and lucrative consumer base. reduce volume sales Soft drink distributors continue to consolidate in an attempt to offset margin pressure through cost reduction Target Segment – Youth: The child/youth market is of crucial importance to drinks manufacturers as under-19s constitute 20-30% of the population in western countries. With many life-long consumption habits formed during youth. gaining high 16 . presence of competitor‟s beverages.Indirect Channel (wholesalers) These are Medium-sized organizations as a consequence of aggregation through consortia and merging.
ultimately. Energy drink consumption has also climbed. Market trends for the soft drink industry can be summarized by six fundamental themes: Changing consumer beverage preferences. Targeting Soft Drinks to Youths enables companies to: Assess the size of the soft drinks opportunity by age group Understand children's values and motivations and their impact on the soft drinks market Develop incumbent market position through enhanced targeting and promotion Assess trends in new product development in the children's market over the course of the past 2 years Combine business to business executive opinion and local field research Industry Challenges: In order to survive in this environment. due to the increasingly active lifestyles of teenagers.penetration in the children's and teenagers' market is of key importance to manufacturers with long-term ambitions and growth targets. enhanced flexibility and. companies must consider the market trends that will likely shape the industry over the next few years. 17 . greater profitability. This will help soft drink companies to understand the challenges they will encounter and to turn them into opportunities for process improvement. featuring a shift toward health-oriented wellness drinks Growing friction between bottlers and manufacturers in the distribution system Continually increasing retailer strength Fierce competition Complex distribution system composed of multiple sales channels Beverage safety concerns and more-stringent regulations Consumers turn to wellness and healthy drinks because a significant portion of the population is overweight or obese.
For example. The industry has responded to consumers‟ desire for healthier beverages by creating new categories. 18 . This growth is being partially driven by increasing awareness of the health benefits of proper hydration. Among individual countries. Overall. and by diversifying within existing ones.This trend towards healthier drinks has created a number of new categories. and product categories with a healthier image. bottled water is catching up fast. Italy ranks number one in bottled water consumption. and changed the consumption trends of the beverage industry as a whole. energy drinks and juice: While carbonates are still the largest soft drink segment. These competitive pressures have led to: SKU proliferation . bottled water represents the fastest growing soft drink segment.number of SKUs in a typical beverage company has doubled from 1991 to 2001. the industry is now more evenly balanced between carbonates. While previously dominated by carbonated soft drinks. with an average of 58 liters consumed annually per capita. Further consolidation and rationalization to capture cost savings by improving operations and eliminating redundancy: Multiple distribution channels. with the average Italian drinking 177 liters per year. such as energy drinks. such as bottled water. the leading carbonated soft drink companies have recently introduced products with 50% less sugar that fall mid-way between regular and diet classifications. expanding at 9 percent annually. A plethora of new product failures-Only 20% is effective and generates significant revenue.
advertising agencies. instead they are supplied by different vendors. This consists of the Task Environment and the Broad Environment. suppliers. these include fruit based non-carbonated drinks.MARKETING OVERVIEW: PEPSICO INDIA Marketing Environment Marketing environment is an overall environment in which a Company operates. This will be explained in detail in the strategic marketing segment. economic environment. 19 . These include the Pet bottles and the Glass bottles. But. The dealers and distributors include agents. juice based drinks. distributors. and socio – cultural environment. PepsiCo has started targeting this segment by offering products in the Non. and telecommunications companies. dealers and the target customers. Broad Environment: This contains forces that can have a major impact on the players in the task environment. political – legal environment. This includes six components: demographic environment. energy drinks. because of increasing competition from Coke PepsiCo has expanded its target customer base which now includes people who are prospects for beverages beyond the CSD category. distributing and promoting the offering. The suppliers for PepsiCo India include the bottle suppliers for the soft drinks. banking and insurance companies. physical environment. Suppliers include the material and service suppliers such as marketing research agencies. transportation companies. Task Environment Task Environment includes the immediate players involved in producing. technological environment. sports drinks. PepsiCo does not manufacture the refrigerators. Companies need to pay close attention to the trends and developments in these environments and make timely adjustments to their marketing strategies in order survive and succeed in the market.e. manufacturer representatives and others who facilitate finding and selling to customers. „Frito Lay‟).CSD category. The main players are the company. brokers. The target customer for PepsiCo is primarily the youth. snack food (from the snack food division i. The distributors and dealers are part of the sales and distribution network.
Place and Promotion.Cola.MARKETING MIX / 4 P’S Marketing Mix has been defined as the set of marketing tools that a firm uses to pursue its marketing objectives. The four P‟s represent the seller‟s view of the marketing tools available for influencing buyers. 1/2 liters pack and 200 ml pack Mirinda Orange . from a buyers point of view. Products range offered by PepsiCo India: Cold drinks Pepsi .5. 1/2 liters & 200 ml pack Product Product Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns Marketing Mix Promotion Sales Promotion Advertising Sales Force Price List Price Discounts Allowances Payment period Credit Payments Place Channels Coverage Assortments Locations Inventory Transport Public Relations Direct Marketing Fig: Marketing Variables: The Four P Components of the Marketing Mix 20 . carbonated cold drink in in 2 and 1/2.Orange flavored carbonated cold drink in 2. Product Product Variety: Pepsi offers different variety of products ranging from carbonated to NonCarbonated Soft Drinks. Price. each marketing tool is designed to deliver a customer specific benefits according to his or her requirements. Whereas. Product. 1. These tools are classified into four broad groups. 1. namely. 1.
1. 1/2 liters pack and 200 ml pack Mirinda Lemon . We promise to work toward continuous improvement in all areas of our organization”. there are nearly 42 SKU‟s which are monitored and regulated on daily basis. “At every step of our manufacturing and bottling process. Pepsi does that by following one quality standard worldwide and according to the official website of Pepsi. we strive for excellence because our consumers expect and deserve nothing less.Clear Carbonated cold drinks in 2 and 1/2. marketing and advertising. packaging. 7-up . Especially in the case of Pepsi this is even more important because of the controversies and claims regarding the CSE report on Pesticides in Pepsi.Carbonated lemonade in 2 and 1/2. 1 and ½ liters pack Fruit Juice Tropicana Tropicana Twister Ready-to-eat Packed Snacks Lays chips Lehar Kurkure Cheetos Quaker These Products come in different size – 200 ml. 300 ml. 1200 ml. 1.Clear Carbonated cold drinks in 2 and 1/2. the Co. 600 ml. In our products. 2 lt. Therefore Pepsi has to maintain stringent quality norms and standards and norms. maintains that: “At every level of Pepsi-Cola Company. 1/2 liters and 200 ml pack Aquafina . 2. we take great care to ensure that the highest standards are met in everything we do. strict quality controls are followed to ensure that Pepsi-Cola products meet the same high standards of quality that consumers have 21 . needs to address. Source: PepsiCo Annual Report 2010 Product Quality: This is one of the most important aspects that any Co. 1/2 liters pack and 200 ml pack Mountain Dew . 1.Bottled mineral water in 5.
Different packaging also affects the usage pattern of the product in various markets. in this Business needs to do if it wants to remain and succeed in the Business. g. e.come to expect and value from us. state-ofthe-art process that helps prevent any foreign material from entering the product. Saurabh Ganguly. Rahul Dravid etc. We also follow strict quality control procedures during the manufacturing and filling of our packages. Pet Bottles and Glass Bottles (in 200 and 300 ml). The sale of 600 ml bottles is high in areas where students etc. Pepsi has successfully done that for so many years. bottles is high in areas in which middle and high income group customers stay. Pepsi has targeted the youth and has invested heavily in advertising and building a brand image (by launching several campaigns and roping in mega stars such as Shahrukh. leak or burst bottle.) that attracts to the youth and this is one of the main reason for the success of Pepsi. Containers are then rinsed and quickly filled through a high-speed. half-filled bottle etc. But the sale of 200 and 300 ml bottles is high in areas where people in the lower income group bracket stay. Services. The pet or plastic bottles are returned the same day and a replacement is provided for the same but in the case of glass bottles the retailer has to collect all the burst bottles and return it to the salesman around 25th of every month to get a replacement. Different packaging is also provided for different products like Tetra Packs. Warranties. Sachin. Packaging and Size: The products are available in packaging and sizes. Additional quality control measures help to ensure the integrity of Pepsi-Cola products throughout the distribution process. stay. Each bottle and can undergoes a thorough inspection and testing process. e. Returns: There are no warranties and services (post sales) provided for these products but there is provision of returns in case there is any problem with the product. from warehouse to store shelf”.g. sale of 2 lt. This is done to facilitate the use according to the requirements of the Customer. Brand Name: This is the most important thing any Co. 22 .
Discounts: Discounts are provided to Wholesalers and Slums but there is no discount for retailers.2. COBO (Company owned Bottling Operations) and FOBO (Franchisee owned Bottling Operations) have no say in the advertising campaigns and their planning. 3. Salesmen are not authorized to make any change. The Depot In charge (Sr. Allowances: Allowances are given to salesmen on achieving their daily targets. The wholesalers are also required to make in advance but at times they also defer the payment and make the payment at a later date. The advertising account of Pepsi is handled by JWT (J Walter Thomson) in association with the Corporate office of PepsiCo India. Payment period and Credit terms: No credit is provided. they defer the payment and in that case. Every Salesman is assigned a specific route that he has to cover every day. Sales Force: There is a dedicated sales force at every C&F and Distributor point. The discounts are negotiated directly with the Company and the C&F or the Distributor point is not involved in the price negotiation. CE / CE) about 23 . These promotions are used from time to time depending upon the sale of the products. Advertising: Advertising is done by PepsiCo. The Salesman has to take care of all the Shops on the designated route and address and inform (to the Sr. C E / C E) gives the target to every salesman in consultation with the TDM. This target is given to every Salesman every day before he goes on his designated route. Price List Price: The Price of each product is fixed and there is no discrepancy. The payment procedure is not flexible as the retailers are required to make on the spot payments. Promotion Sales Promotion: This is the most frequently used form of promotion which is used to increase the sale of the selected product. At times. alteration or give discounts unless authorized by the Company. If the sale of any particular product declines or shows a declining trend then a suitable Sales Promotion Campaign is launched to increase the sale of that product. the Salesman either shows a shortage or pays the rest of the amount by himself.
Place Channels: „Channels are independent organizations involved in the process of making a product or service available for use or consumption‟. terms and conditions of the scheme etc. This has helped Pepsi in maintaining an extremely competitive position in the market in spite of the continuous onslaught from Coca Cola. These are Market Reach and Market Penetration. Pepsi believes in maintaining good and healthy relations with all its Channel partners and every other person in the value chain. 24 . Coverage: Two things come under market coverage. registration for the scheme. There are different intermediaries in channels that facilitate the availability of goods to the consumer. The Salesmen are also assigned the task of providing all the information to the retailers regarding the daily schemes and the details of all the promotion schemes launched from time to time. These include informing the retailer about the promotional scheme. Market Reach can be termed as accessibility and Market Penetration can be termed as Frequency. Initially the focus of the Company remains on reaching all the markets and then the Company shifts its focus on increasing the frequency of sales in the respective markets so that the sales and profitability of the Company can be increased. The Salesman is also assigned the task of registering maximum possible outlets on his assigned route. 4.any issue any retailer has on the route. Public Relations: This is one important aspects related to the success of PepsiCo in India.
Three major competitive advantages give PepsiCo India a competitive edge in the market place.SUSTAINABLE COMPETITIVE ADVANTAGE Competitive advantage is a company‟s ability to perform in one or more ways that its competitors cannot or will not match. Then only that competitive advantage can be transformed into a sustainable competitive advantage. this advantage is termed as sustainable competitive advantage. Proven ability to innovate and create differentiated products through superior operating base. They are: Big Muscular Brands built through better market positioning and heavy investment in advertising and promotions. 25 . When a company is able to maintain that advantage a long period of time that gives it an edge over its competitors then. Powerful go to market system built with the help of superior relationship base and an impeccable sales and distribution network. Making it all work are the extraordinarily talented and dedicated people who are an integral part of PepsiCo India. Any competitive advantage must be seen by customers as a customer advantage.
34 ACTIVITY/ TURNOVER Inventory turnover Receivables turnover Payables turnover Total asset turnover Equity turnover 17.35 0.12 Source: PepsiCo Annual Reports 26 .41 0.30 14.27 53.20 1.99 15.40 22.11 0.89 0.57 17.00 0.95 11.86 9.15 9.68 0.31 0.33 32.96 0.80 0.51 9.05 10.35 15.54 10.47 1.75 35.26 1.18 0.24 0.20 35.57 17.23 0.93 29.38 14.83 16.29 LEVERAGE Debt to equity Debt to capital Interest coverage 1.47 14.89 42.32 FY 2010-09 FY 2009-08 FY 2008-07 FY 2009-06 PROFITABILITY Gross Profit margin Net Profit margin Return on equity (ROE) Return on assets (ROA) 54.FINANCIAL ANALYSIS Financial Ratios: For PepsiCo RATIO LIQUIDITY Current ratio Quick ratio Cash ratio 1.08 2.15 9.41 1.47 0.29 54.20 3.01 1.24 15.79 0.51 13.24 8.40 1.44 1.85 2.92 52.15 14.32 21.12 0.73 16.14 2.
25 7.48 0.05 4.70 20.62 0.67 14.48 1.38 0.94 0.23 8.31 18.13 13.95 0.58 0.16 8.25 14.93 18.90 7.98 0.33 LEVERAGE Debt to equity Debt to capital Interest coverage 0.32 26.91 8.64 1.53 18.43 20.45 0.20 0.30 18.00 8.20 3.61 1.73 4.67 0.17 0.33 FY 2010-09 FY 2009-08 FY 2008-07 FY 2009-06 PROFITABILITY Net Profit margin Return on equity (ROE) Return on assets (ROA) 6.91 0.14 0.37 19.93 11.43 0.28 7.37 Source: Coco-Cola Annual Reports 27 .85 0.43 0.34 23. For Coco-Cola RATIO LIQUIDITY Current ratio Quick ratio Cash ratio 1.15 ACTIVITY/ TURNOVER Inventory turnover Receivables turnover Payables turnover Total asset turnover Equity turnover 13.25 21.61 0.56 13.61 10.67 1.32 0.79 1.76 0.28 0.92 0.
94 FY 2007-06 1.LIQUIDITY RATIO Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations.'s current ratio improved from 2008 to 2009 but then slightly deteriorated from 2009 to 2010. A liquidity ratio calculated as current assets divided by current liabilities. 28 . Because cash in hand and prepaid expenses (advances to be recovered in cash or kind for value to be received) has decreased by a considerable amount in FY 2010-09 which thus decreases the current assets.23 0.11 1. While for Coca-Cola Co.17 FY 2009-08 1.44 1.'s current ratio improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.92 Graph: Comparative plot for current Ratio of PepsiCo & Coco-Cola Co. They are of particular interest to those extending short-term credit to the firm. Current Ratio: Current Ratio PepsiCo Coco-Cola Co FY 2010-09 1. Higher the current ratio greater the short term solvency. Current ratio shows that the ability of the firm to meet its current liabilities.31 0.28 FY 2008-07 1. PepsiCo Inc.
00 0.85 FY 2009-08 1.Quick Ratio: Quick Ratio PepsiCo Coco-Cola Co FY 2010-09 0. As it can be seen from the graph and figures that Quick ratio is less than 1 for all the three financial years. for Coca-Cola Co.'s quick ratio improved from 2008 to 2009 but then slightly deteriorated from 2009 to 2010 not reaching 2008 level. While.79 0.95 FY 2008-07 0. quick ratio improved from 2008 to 2009 but then slightly deteriorated from 2009 to 2010.89 0. Even a Current Ratio >1 may not indicate better liquidity so we study quick ratio for a company which do not include not readily realizable assets like inventory. thus it shows that the firm lacks ability to meet its current obligations. 29 . PepsiCo Inc.62 FY 2007-06 0. It excludes the current assets like inventory and prepaid expenses to give a better picture of liquidity of the firm.58 Graph: Comparative plot for Quick Ratio of PepsiCo & Coco-Cola Co.80 0.
PepsiCo Inc.'s cash ratio improved from 2008 to 2009 but then slightly deteriorated from 2009 to 2010.33 Graph: Comparative plot for Cash Ratio of PepsiCo & Coco-Cola Co. along with investments.61 FY 2009-08 0. It only measures the ability of a firm's cash. Cash ratio is also known as financial slack.47 0.40 0.Cash Ratio: Cash Ratio PepsiCo Coco-Cola Co FY 2010-09 0. It only looks at the most liquid short-term assets of the company.38 FY 2007-06 0. as there are no assurances that these two accounts can be converted to cash in a timely matter to meet current liabilities. While for Coca-Cola Co. It also ignores inventory and receivables. cash ratio improved from 2008 to 2009 but then slightly deteriorated from 2009 to 2010.67 FY 2008-07 0. 30 . The cash ratio is the most conservative liquidity ratio of all. which are those that can be most easily used to pay off current obligations.26 0.32 0.
For most of these ratios. this is because of high sales volume of PepsiCo in Asia/Europe as in US there Net Sale is almost same. Net Profit margin: Net Profit Margin PepsiCo Coco-Cola Co FY 2010-09 10.75 4.'s net profit margin improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.37 FY 2007-06 14.93 6.89 8. Coca-Cola Co.93 FY 2008-07 11. 31 . Net profit margin denotes overall profitability.67 FY 2009-08 13. This comparative analysis clearly depict that PepsiCo‟s operations result in better profit than Coco-Cola‟s.53 Graph: Comparative plot for Net Profit margin of PepsiCo & Coco-Cola Co. having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well.'s net profit margin followed a downward trend till 2009 and then it highly increased from 2009 to 2010.33 8.operating activities.PROFITABILITY RATIO Profitability Ratios are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time.profit from operations as well as profit/Loss from non. PepsiCo Inc.
's ROE deteriorated from 2008 to 2009 but then improved from 2009 to 2010.28 Graph: Comparative plot for Return on equity of PepsiCo & Coco-Cola Co. A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested. 32 . resulting in gain in its profit.Return on equity (ROE): FY 2010-09 29.'s ROE deteriorated from 2008 to 2009 and from 2009 to 2010. PepsiCo Inc.20 FY 2008-07 42.38 11.05 Return on Equity PepsiCo Coco-Cola Co FY 2009-08 35.90 FY 2007-06 32. The gain in profit increased the ROE for Coco-Cola Co. Coco-Cola realized this issue and increased the utilization of equity.86 14. Coca-Cola Co. Above graph shows that PepsiCo is not using its investment funds properly to generate earnings growth. While on the other hand.83 18.47 19.
34 7.15 Graph: Comparative plot for return on assets of PepsiCo & Coco-Cola Co. has increased but at the same time net income possessed by the firm as not increased by that ratio.91 FY 2008-07 14. ROA gives an idea as to how efficient management is at using its assets to generate earnings.Return on assets (ROA): FY 2010-09 9. the better. In FY 2010-09. The higher the ROA number. It is an indicator of how profitable a company is relative to its total assets. While for Coca-Cola Co. because the company is earning more money on less investment.73 Return on Assets PepsiCo Coco-Cola Co FY 2009-08 14.23 FY 2007-06 16. The decrement in the value of ROA is because although the assets of Coco-Cola Co. there‟s increase in the net income thus ROA has raised.'s ROA improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.92 3. 33 . resulting in the decreasing figures for the financial year 2009-08. PepsiCo Inc. PepsiCo lacks in maintaining its total assets in the ratio of its net income.27 4. ROA deteriorated from 2008 to 2009 but then improved from 2009 to 2010.29 7.
therefore. Above graph depicts that Coco-Cola Co. PepsiCo Inc.ACTIVITY/ TURNOVER RATIO A measure of the number of times a company's inventory is replaced during a given time period. maintains higher inventory level than PepsiCo.25 FY 2009-08 16. Inventory turnover: Inventory Turnover PepsiCo Coco-Cola Co FY 2010-09 17.00 Graph: Comparative plot for Inventory turnover of PepsiCo & Coco-Cola Co.'s inventory turnover deteriorated from 2008 to 2009 but then slightly improved from 2009 to 2010.15 14. A low turnover implies poor sales and. A high turnover ratio is a sign that the company is producing and selling its goods or services very quickly.24 13. excess inventory.15 13. 34 .51 13. High inventory levels are unhealthy because they represent an investment with a rate of return of zero.'s inventory turnover deteriorated from 2008 to 2009 but then improved from 2009 to 2010 exceeding 2008 level. A high ratio implies either strong sales or ineffective buying. Turnover ratio is calculated as cost of goods sold divided by average inventory during the time period.61 FY 2007-06 17. Coca-Cola Co.16 FY 2008-07 17.
like plant and equipment. The decrement in TAT is because although the total assets have increased but at the same time revenue possessed by the firm is not increased by that ratio. 35 .08 0. The lower the total asset turnover ratio.67 Graph: Comparative plot for Total Assets turnover of PepsiCo & Coco-Cola Co.'s total asset turnover deteriorated from 2008 to 2009 and from 2009 to 2010. overall.20 0.Total asset turnover: Total Assets Turnover PepsiCo Coco-Cola Co FY 2010-09 0. as compared to historical data for the firm and industry data. the more sluggish the firm‟s sales.14 0.64 FY 2008-07 1. receivables.48 FY 2009-08 1. Total Assets Turnover Ratio measures how efficiently assets are employed. This may indicate a problem with one or more of the asset categories composing total assets inventory (here not included). as well as inventory (here not included) and accounts receivable.'s total asset turnover deteriorated from 2008 to 2009 and from 2009 to 2010.85 0. CocaCola Co. resulting in the decreasing figures.79 FY 2007-06 1. The total asset turnover ratio considers all assets including fixed assets. or fixed assets PepsiCo Inc.
4%.'s equity turnover deteriorated from 2008 to 2009 and from 2009 to 2010.57 1. resulting 1. net revenue and equity both showed increment but equity increased more in comparison to its net revenue.25 FY 2008-07 3. 36 . pulling equity turnover ratio by 1.29 1. company worked on its operations.3% increase in net revenue and ~1.56 FY 2007-06 2. An activity ratio calculated as total revenue divided by shareholders' equity. PepsiCo Inc. pushing the ratio downwards. PepsiCo ration decreased from FY 2008 to 2009 because net revenue decreased by ~1% and equity increased by ~1.33 Graph: Comparative plot for Equity turnover ratio of PepsiCo & Coco-Cola Co. But during year 2010.'s equity turnover deteriorated from 2008 to 2009 but then slightly improved from 2009 to 2010. While for Coco-Cola Co.4%. Coca-Cola Co.13 FY 2009-08 2.3% in equity. Thus. it increased the ratio by 1%.73 1.57 1.Equity turnover: Equity Turnover PepsiCo Coco-Cola Co FY 2010-09 2.
Coca-Cola Co.48 FY 2008-07 0.18 0. 37 .47 0.LEVERAGE RATIO Solvency or Leverage ratios provide an indication of the long-term solvency of the firm.24 0. PepsiCo Inc.'s debt-to-equity ratio improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010. Both the companies have preferred to collect fund by equity. Debt equity ratio shows the mix of debt and equity used. financial leverage ratios measure the extent to which the firm is using long term debt.68 0.43 Graph: Comparative plot for debt to equity of PepsiCo & Coco-Cola Co. Unlike liquidity ratios that are concerned with short-term assets and liabilities. because it reveals the extent to which company management is willing to fund its operations with debt. A high debt equity ratio may put stress on company‟s head but bank and financial institutions normally extend long term to firms having Debt-Equity ratio within 2:1.76 FY 2009-08 0.'s debt-to-equity ratio deteriorated from 2008 to 2009 and from 2009 to 2010.45 FY 2007-06 0. It is closely watched by creditors and investors. Debt to equity: Debt to Equity PepsiCo Coco-Cola Co FY 2010-09 1. rather than equity.
i.32 0. Although Coco-Cola Co.20 0.Debt to capital: Debt to Capital PepsiCo Coco-Cola Co FY 2010-09 0. The debt ratio compares a company's total debt to its total assets.30 Graph: Comparative plot for debt to capital of PepsiCo & Coco-Cola Co. The lower the percentage. 38 .'s debt-to-capital ratio improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.31 FY 2007-06 0. PepsiCo Inc. which is used to gain a general idea as to the amount of leverage being used by a company. also saw increment in both the values i.e.7% in the FY 2010-09.40 0. but it increased by 1. Coca-Cola Co.3%.32 FY 2008-07 0.e. the less leverage a company is using and the stronger its equity position. The debt of PepsiCo has increased considerably by 3..2% while capital by 2%.43 FY 2009-08 0.54 0. total debt and total capital. Thus it implies that PepsiCo depends on leverage more in comparison to Coco-Cola Co. pulling ratio by 1. money borrowed from and/or owed to others.'s debt-to-capital ratio deteriorated from 2008 to 2009 and from 2009 to 2010. A low percentage means that the company is less dependent on leverage.
43 FY 2009-08 21.35. While for Coca-Cola Co. deteriorated from 2008 to 2009 and from 2009 to 2010.35 26. 39 . thus ratio decreased to 10. the more the company is burdened by debt expense and higher the interest coverage ratio shows better solvency of the firm.14 FY 2007-06 35.135 during the FY 2010-09 but at the same time interest also increased from 397 to 903.20 FY 2008-07 22.Interest Coverage: Interest Coverage PepsiCo Coco-Cola Co FY 2010-09 10.476 to 9. This shows that interest paid by the company has increased more than its earnings. it improved from 2008 to 2009 but then slightly deteriorated from 2009 to 2010 not reaching 2008 level. The interest coverage ratio is used to determine how easily a company can pay interest expenses on outstanding debt. The lower the ratio. Although EBIT increased from 8.41 18. As per trend noticed interest coverage ratio for PepsiCo Inc.37 Graph: Comparative plot for Interest Coverage of PepsiCo & Coco-Cola Co.12 20.12 from 21.12 18.
The new debt was used to finance the bottler acquisitions and other corporate activities. Company is seeing rapid growth in its Equity. PepsiCo is the second largest food & beverage business in the world. Four year financial analysis has been done for PepsiCo and the financial position of the company has been concluded. Long-term Debt soared nearly 140 percent. 19 of PepsiCo‟s product lines generated retail sales of more than $1 billion each.6 billion in FY 2010-09. Based on net revenue. PepsiCo has a favorable liquidity position All the liquidity ratios of PepsiCo are close to 1 which shows that company have good short-term solvency.2 billion in June 2009 to $19. Increase in Inventory Turnover ratios shows efficient inventory management. Leverage ratios of PepsiCo are increased but show a better long term solvency.FINANCIAL ANALYSIS: CONCLUSION During the financial year 2010-09. In this report. 40 . from $8. Profitability ratios show that PepsiCo is a good profit generating firm and increasing rapidly. resulting in annual net revenues of $43.3 billion. Total asset turnover ratios indicate company‟s efficiency to generate revenue not largely depending on its investment in fixed assets. and the company‟s products were distributed across more than 200 countries.
To know the overall functioning of PepsiCo India the sales and distribution system of Pepsi India was studied. It also aims to know customer perception regarding PepsiCo India. Thus to explore what changes PepsiCo India is bringing in order to increase its visibility and market presence to tackle the ever increasing hold of Coca Cola on the Indian beverage market. Dayal Bagh. Bhagwan Talkies. This project also covers a detailed observation and study of the VISI-PURITY campaign and the various retail initiatives in Agra markets primarily New Agra. Deewani Crossing and Hari Parwat. This study aims to explore the overall functioning and position of PepsiCo India in the marketplace. To know about these facts this research project primarily focus on relationship management of PepsiCo India‟s main carrying and forwarding agency Varun beverages limited. 41 .RESEARCH PROJECT TOPIC: “STUDY TO EXPLORE OVERALL FUNCTIONING & MARKET POSITIONING OF PEPSICO INDIA” This study titled as above aims at exploring the strategies followed by PepsiCo India to manage its market position and functioning both internal as well as external since it started its operations in India. which is considered to be one of the strongest not only in the country but also worldwide.
The sampling method that I am being using is the stratified sampling method. 42 . Secondary Data Collection: Secondary data was collected from old reports and magazines and data provided by Varun Beverages itself. the reason behind using this method even though the time consumption when taken into consideration is more is to divide the whole set of population I am considering for my work into different group according to type of information gathered from each set and by that a perfect co-relation could also be done. archives and their annual financial reports. namely Primary data collection Secondary data collection Primary data collection: Primary data was collected through Questionnaire Surveys and direct interviews. Also I would use internet to get some more information about the industry and use journals for getting guidance from the past researches in this topic. DATA COLLECTION METHOD The data collection mode used to get the desired information from primary sources & Unstructured Direct Interviews & the instruments used in the Questionnaire. In this research data was collected through two different modes. My data collection processes would consist of series of procedures which would be further divided into primary and secondary data collection. The secondary data are those studies made by others for their own purposes. The secondary data for my research would be collected from the companies own data.RESEARCH METHODOLOGY Every research methodology includes a research design which may be defined as the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research process with economy in procedure. Also the findings of prior research studies on outsourcing of accounting processes would give an ample amount of historical data or decision making patterns.
authentication of the data is major concern. As the data included is secondary in nature. 43 .LIMITATIONS The limitations faced during the training and while undergoing my research was lack of availability of first hand data. thus it could affect the recommendation and conclusion part. The next difficulty was the facts and figures had change due to change in financial year. Also there were huge constraints when it came to time as a one month period only allowed me a bit of primary research plus the population size being humongous my sample of 75 retailers does not necessarily represent the entire population rather it can be taken as a representative group of the regions in which the survey was taken.
PepsiCo entered India in 1989 and is concentrating in three focus areas – Soft drink concentrate. Faced with the existing policy framework at the time. The company has an extremely positive outlook for India. One of PepsiCo‟s key strategies was to develop a completely local management team. The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flown in. which include more than a third of the world‟s population. PepsiCo intends to expand its operations and is planning an investment of approximately US$ 500 million in the next three years. 44 . With the introduction of the liberalization policies since 1991. snack foods and vegetable and food processing. India is a key market for PepsiCo. 1999) This reflects that India holds a central position in Pepsi‟s corporate strategy." (PepsiCo‟s annual report.FUNCTIONING & STRATEGIES OF PEPSICO INDIA Pepsi is one of the most well-known brands in the world today available in over 160 countries. Pepsi took complete control of its operations. Pepsi has 15 company owned factories while their Indian bottling partners own 28. "Outside North America two of our largest and fastest growing businesses are in India and China. the company entered the Indian market through a joint venture with Voltas and Punjab Agro Industries. The company has set up 8 Greenfield sites in backward regions of different states. and at the same time the company has added value to Indian agriculture and industry.
TDM . 45 . UM . and west) and report to the corporate office.Unit Manager: In charge of day to day operations and supervision of all the functions within the organizations including operations.g. The Unit Manager reports to the MUM. monthly and annual MUM UM UM TDM MDM ADC MDC CE ME PSR MARKETING ASSISTANTS Fig: Hierarchy Chain of Sales & Marketing Dept.SALES AND MARKETING HIERARCHY OF PEPSICO INDIA MUM – Marketing Unit Manager: In charge of specific zones (e.Territory Development Manager: TDM is the in charge of the sales and distribution network of a particular territory within a zone. south. sales and distribution. logistics. Responsible for the daily. marketing. of PepsiCo India sales within the territory decides the daily schemes for products and incentives for salespersons. north. east.
boards. are responsible for acquiring new customers. ME . He is required to visit the market and accompany every salesperson as frequently as possible. He is directly responsible for any issues in the area and is supposed to ensure the smooth functioning of the entire sales and distribution network in the area.Customer Executive: Reports to the ADC and is in charge of the salespersons. MDM . He is the first person to get information about the market / area and is the first contact if the salespersons or retailers face issue. ADC .He is also responsible for cost effectiveness. Decides the format and time frame of the marketing and promotional activities and the incentives given to the retailers.Marketing Executive: Reports to the MDC and is responsible for the daily functioning of the marketing activities in the including awareness of promotions in the market and the response in the market Pre Sales Representative: They are the most important asset for the company as they are the ones who sell the products.Marketing Development Coordinator: Reports to MDM. Coordinates with the outside agencies for displays. Their work also includes informing the retailers about the promotions and any new scheme launched. and is in charge of a C & F center and the distributor point in the area. MDC . and retain the old ones. 46 . Responsible for assigning and achieving daily sales target given to the salespersons.Area Development Coordinator: Reports to the TDM. He is responsible for the execution and success of marketing and promotional activities.Marketing Development Manager: MDM is responsible for all the marketing activities and their effectiveness within a territory. They report to the CE. checks conducted in the market. He is also responsible to keep a check on the expenditure of the marketing activities in the market. and is in charge of carrying out all the marketing activities in the area. They are also required to push for the sale of any new product launched in the market and make sure that the retailers are following the company guidelines regarding the launch and the maintenance of Visi coolers. profit generation and profit maximization within the territory. CE .
15 are owned by PepsiCo and the rest 17 are (FOBO). For this purpose water is extracted from the ground and the concentrated salt is provided by PepsiCo India to all the plants in the country. produce market. they are water and the concentrated salt that is used to produce the final product. For the carbonated drinks industry only two raw materials are required. In order to be more precise only the primary activities in the value chain of PepsiCo India are analyzed. owned by R K Jaipuria Group. deliver and support its product. Operations – Operations primarily includes all the bottling plants. Currently there are 32 bottling planting in India that operate for PepsiCo. Of the 32 plants. Primary Activities: Inbound Logistics – This involves bringing and procuring raw materials for the business.VALUE CREATION FOR CUSTOMER: Firm Infrastructure Human Resource Management Support Activities Inbound Logistics Operations Technology Development Procurement Outbound Logistics Marketing and Sales Service Margin Primary Activities Fig: Generic Value Chain The generic value chain is a tool to identify ways to create value for the customer. This model proposes that every firm is a synthesis of activities performed to design. 47 .
From the C & F centers and Distributor Points the product is sent out for sale in the market to the retailers. This includes maintaining excellent relations with its channel partners. This is one of the important factors for the success of Pepsi. They are required to collect all the damaged glass bottles and give to the respective salesperson who gives them the replacement within the next few days after getting it approved from the CE or ADC. PepsiCo puts lot of effort in its marketing activities. The only exception being leak or burst bottles. while the replacement for glass bottles is provided between 25th and 30th of every month. from where it is sent to the C & F centers and the Distributor Points according to their demand.Outbound Logistics – The Outbound logistics of Pepsi can be divided into three stages. making huge investments in Advertising. sponsoring various events. launching promotional for any launch or re launch of a product. the shopkeeper gets replacement for plastic bottles from the salesmen instantly. Marketing and Sales – The sales and distribution network of Pepsi is very strong and comprises of different layers and a dedicated sales force. To keep the company abreast with competition and to provide support to its channel partners and to increase the sales. Service – In this industry after sales service is generally not required. In that case. First the finished product from the bottling plants is sent to the depot or the territorial office. signing of Megastars as its brand ambassadors. 48 .
STRATEGIC MARKETING OF PEPSICO INDIA Demographic/ Economic Environment Marketing Intermediari es Technological/ Physical Environment Marketing Information System Suppliers 4 P’s Target Customers Marketin g Planning System Public Marketin g Control System Marketing Organization & Implementatio n System Competitor s Fig: Strategic Marketing of PepsiCo India 49 .
Pepsi distributes its products considering this in mind.Demographic / Economic Environment: Demographic environment comprises of people of different ages and class. Pepsi primarily uses Bollywood stars and Cricket stars in India as they are the biggest celebrities and role models and are widely accepted. Legal Environment is important because a company needs to confirm to the laws of the land and carry out its operations accordingly. initially it started its operations in India with Punjab Government and then it started its operations in the carbonated and non-carbonated beverage segment in collaboration with RKJ group. This helps the Company in identifying specific target market for specific products. Because of these factors. bottles are distributed in areas that have more no. This is the reason why Pepsi operates in India in collaboration. While political environment is important as it can play an important in forming opinions regarding the company. of families. Political / legal Environment: This is one of the most important factors that a company needs to consider while starting. 50 . Pepsi has access to the best technology for its products and it uses the same technology worldwide for its products. Technical / Physical Environment: Technical and physical environment refers to the technical capabilities and the infrastructural capabilities and requirements of the Company. economic environment helps the Company in deciding how much to spend and accordingly price the products. Cans are distributed in areas that have more youth population and two lt. This determines the ingredients (of the products) and the type advertisement and promotions used by the Company. This was instrumental in helping Pepsi handle the pesticide controversy. Similarly. 200 ml bottles are primarily distributed in areas with lower income group people. establishing and expanding operations in any country. Social / Cultural Environment: This plays an important role in determining the acceptability of the product according to the socio cultural norms of the market and the effect the company has on each of these. Companies need to be very careful about this issue as people are very sensitive about their culture and may not tolerate any infringement.
This is evident in the immense expenditure Pepsi incurs on its advertisements and endorsements of its brand ambassadors. It is used by established companies and by new companies seeking distributors. They are Exclusive distribution. The concentrated salt is the only ingredient apart from water that is required to manufacture the beverages.Market Intermediaries: Market Intermediaries facilitate the availability of products to the customers. Suppliers: There are no suppliers for the carbonated beverage industry including PepsiCo. Exclusive Distribution means severely limiting the number of intermediaries. Pepsi primarily uses intensive distribution for its products. Because of the fierce competition from Coke. Primarily there are three strategies for distribution through market intermediaries. Intensive Distribution consists of the manufacturer placing the goods or services in as many outlets as possible. This is done to increase the market reach and market penetration of its products and to counter competition from its largest and biggest rival Coke. It often involves exclusive leading arrangements. Pepsi has to be very aggressive in promoting itself through advertisements and other methods like sales promotions. 51 . Even outside India Coke is Pepsi biggest competitor. It is used when the producer wants to maintain control over the service level and outputs offered by the resellers. Selective Distribution and Intensive Distribution. Selective Distribution involves the use of few selective intermediaries who are willing to carry a particular product. Competitors: For Pepsi the biggest competition comes from Coke. The salt used by all the bottling plants to make the beverages is supplied to them by PepsiCo irrespective of whether they are COBO or FOBO.
The marketing plan primarily operates at two levels. including product features. MIS is needed to counter issues like – too much information. Efficiency Control and Strategic Control. There are primarily four types of marketing control systems. Information regarding new product launches is required by PepsiCo so that they can accordingly plan their strategy. too little information.Marketing Information System: Definition – “Marketing Information System” consists of people. These are. Decisions regarding strategic marketing plan are taken at the corporate level. These decisions are required for the formulation of marketing planning system for specific markets. promotional schemes and daily schemes of Coke and new brand endorsements etc. while information regarding promotional schemes and daily are required by all the regional and territorial offices so that they can accordingly introduce and test the schemes. Strategic Marketing plan – This lays out the target market and the value proposition to be offered. These systems include methods of promotion. While most of the decisions regarding tactical marketing plan are taken at the regional and territorial level. equipment and procedure to sort. 52 . pricing. merchandising. merchandise and discounts on purchase of products. sales channel and service. Annual Plan Control. Marketing planning System: This is required to make a marketing plan that is a central instrument for directing and coordinating marketing effort. promotion. Profitability Control. like sales promotion. Tactical marketing Plan – Specifies marketing tactics. analyze. The type of information required by Pepsi is regarding new products launched by its competitors primarily Coke. too late information and inaccurate information. evaluate and distribute needed timely and accurate information to marketing decision makers. Sales promotion primarily includes displays and incentives to retailers in the form of gifts. Marketing Control System: It is a system comprising of different procedures and various levels of management to bring efficiency and to keep a check on different marketing functions within the organization.
Marketing Communication consists of six major modes of communications called the marketing communication mix. 53 . Direct Marketing. strategies and activities with a view to determine problem areas and recommending a plan of action to improve the company‟s marketing performance. systematic. Personal Selling. Events and Experiences. Marketing Communication: Marketing Communication is the means by which firms attempt to inform. Public Relations and Publicity.Marketing audit is a comprehensive. Sales promotion. Advertising. independent and periodic examination of a company‟s or business unit‟s marketing environment. Marketing Communication is the central instrument of making brand equity. pursued and remind consumers directly and indirectly about the products and brands they sell. objectives.
which it keeps on revising and changing on releasing the competition and market. 1. Deewani Crossing and Hari Parwat of Agra region. This is because of the better retail policies of PepsiCo. Bhagwan Talkies. 2. Market Share According to survey results the net sales of PepsiCo are more as it covers 69% of the market while Coco-Cola Co. survey was done followed by the interview of the retail store owner‟s in New Agra. This promotes the retailers to keep more stock of PepsiCo as compared to Coco-Cola. This survey may not be fruitful for the entire population of agra region of PepsiCo but it would surely be useful for the particular regions mentioned above. Most Sold Brand The table shows the frequency of the brand mentioned during the survey. Dayal Bagh.MARKET POSITION OF PEPSICO INDIA PRIMARY DATA INTEPRETATION To do a complete analysis of the overall environment and position of PepsiCo India. 54 . has 31% share only.
Brand Pepsi Frequency 32 Mountain Dew 13 Coke Thumbs Up Maaza Mirinda 7 9 2 12 According to which Pepsi has the highest sale among all the brands available in the carbonated soft drinks range with 42% of total demand. The table & graph below denotes the frequency of the people belonging to the corresponding age-group which consume any carbonated drink. Age This analysis tells about the major age group consuming soft drinks. This shows that major portion of consumers belong to 18-30 years. While mountain dew ranks second with 17% of total sales. Age Group 18-25 26-30 31-35 36-45 Frequency 31 23 11 9 55 . 3.
The reason for being impure was found out to unsatisfied retail outlet owner by the servicing of the visi. The above score represents the charging percentage of PepsiCo brands only. 56 . the visi (refrigerator) was charged with brands of PepsiCo only.4. Also they were not happy with some of the promotional schemes of the company and thus were not ready to keep their visi pure. 5. Reasons for so low score are: Some of the retailers prefer to buy from big stores as they provide cheap stock. it is found that 58% of the shops were found pure i. Visi Purity Looking onto the survey data. Some of the retail outlet owners are not happy with the Pre Sales representative system. Visi Charging Average visi charging scored about 49% from the survey data which is less than 50.e. Some retailers had some old issues to be sorted that why they stopped updating their stock. Although which were not found pure were about 50% charged with the PepsiCo brands. As they wish to take the stock direct from the delivery van. This was their way to register complain regarding their issues with PepsiCo. Stock is not readily available.
Also in the particular market where the survey was done the sales people have developed a network which is powerful enough to make or break sales for Pepsi in any given quarter PUBLIC RELATION – One of the most important factors of success of PepsiCo in India is the relationship the company and its constituents have with the channel partners. RKJ Group controls almost 65% of the bottling operations of PepsiCo in India.SWOT ANALYSIS In order to get clear understanding of the position of PepsiCo in the various markets we did a SWOT analysis from the data obtained from the survey and the various retailer interviews STRENGTHS: PACKAGING AND PRICING – Pepsi has the advantage of having provided the same kind of health based carbonated drink the Slim Diet Pepsi Can which in comparison to the Diet coke is a much more attractive offering because it is slim sleek equally healthy and way cheaper. NON-CARBONATED – This is one those strengths of Pepsi that often goes unnoticed but plays a very important role in success of Pepsi in India and even around the globe. The experience of working with people who welcome us with a smile rather than a frown will always be remembered. Aquafina clearly outsells Kinley without any fuss. At times this is also seen as a weakness of Pepsi in India attributing to the fact that the Jaipuria group is so strong that in certain circumstances it can even defy the parent Company. DISTRIBUTION – As already mentioned Pepsi India has one strongest and most efficient sales and distribution networks not only in India but also throughout the globe. The Company officials and even the employees of FOBO have very good rapport and relations with the Channel partners. BOTTLING – Pepsi has the advantage of being in partnership with the largest bottler in India. In the mineral water segment. The non-carbonated segment is dominated by PepsiCo. Tropicana is the market leader in fruit juices. Also the recently introduced retailer benefit schemes such as the gold card membership and other free gifts and offerings not only motivate the retailers but also helped us create visibility for the range in a profound. the R K Jaipuria Group. 57 .
retailers are facing lot of problems in visi coolers. Pepsi controls almost 60% market share in the Cola segment. MCDONALDS – This is one of the most important reason why Coke outsells Pepsi worldwide and specially in the United States. They are not able to get new refrigerators. VISI COOLERS – At presently this is one the biggest problems faced by Pepsi. there are growth opportunities for Diet Pepsi in India as here the per capita consumption of carbonated beverages is one of the lowest in the world. HEALTH BASED: Apart from its Juice Based drinks portfolio Pepsi can Use the Slim Diet. WEAKNESS: SECOND MOVER DISADVANTAGE . 58 . in India Pepsi may suffers in sales because of institutional sales. Mauritius etc. Pepsi is not able to get refrigerators in India so they have to import it other namely Sri Lanka.PEPSI – Pepsi Cola is the biggest strength of Pepsi as it is the market leader in the Cola segment and clearly outsells both the products the Coca Cola Company namely Coke and Thums Up. OPPORTUNITIES: LOWEST PER CAPITA CONSUMPTION – Even after almost decades of presence in the market. Because of this.PepsiCo doesn‟t have the first mover advantage in healthy drink sector which Coco-Cola Co. even the repair work takes lot of time because at times even the spares are not available on time. energy drinks to the maximum by promoting it as a health drink at cheaper prices. EXPENDITURE – Right from the very beginning Pepsi has hired the biggest and the most expensive stars in the country as its brand ambassadors and has spent heavily on advertising which has affected its balance sheet. Similarly. Now Pepsi is trying very to bridge this gap in the near future. has and this may prove to be a major shortcoming also in the Agra Market. replacements for old ones.
Pepsi also explored new markets by venturing new segments like fruit based beverages. and Pepsi Blue. In this way. ENVIRONMENT – Environmental concerns are often raised because of the massive amount of water extracted by the bottling plants resulting in the drop in groundwater level which affects the local population adversely. sports drinks. like Tropicana. Pepsi was also able to effectively counter the threats posed by substitutes and new entrant 59 . Pepsi did market development by making the aware of the best products available at their disposal. This happened during the pesticide controversy involving both coke and Pepsi. and making the customer realize that he is important. Pepsi expanded and established itself in the market place by constantly developing new products to the customers. Gatorade. by using the best technology to produce the products. snack food division.THREATS: NGO’s – NGO‟s like CSE can seriously hamper the sales and prospects of companies operating in this industry. by properly communicating with the customer. HEALTH – Growing health awareness among people and some of ill effects of carbonated beverages have pursued many people to switch over to non-carbonated beverages that can seriously hamper the long-term prospects of the entire Industry and not Pepsi.
This will help improve their efficiency and accountability. This should be done at an interval of 45 days or 60 days instead of the current practice of 90 days A complete survey of the every territory should be done for standys. and then a proper budget and plan should be made for their availability at the required places. banners logo racks etc. I arrived at certain recommendations for PepsiCo India (Agra markets) after the analysis of the data. Pepsi should start more aggressive marketing of its Diet conscious products as they have very good growth and future prospects while there is not much growth in the carbonated beverages sector. Some of the important recommendations are as follows There should be and correct feedback from the retailers on the performance of salesmen. The periodical maintenance check of Visi coolers is done at three months. As already mentioned Visi coolers are a major reason of dissatisfaction among retailers.FINDINGS & RECOMMENDATION This is one of the most important and most difficult part of the study. instead of doing it in bits and pieces as the current practice is this will help with promotion at every retailer level There should be incentives for salesmen for every display they enroll because they are assigned this task and if they get incentives for the same then it will greatly increase the efficiency of the promotional activities. 60 . this will also help in reducing the confusing that the retailers have at times because the salesmen do not explain the schemes properly. Moreover.
the objective of the research must be kept in mind so that we can arrive at a befitting conclusion for the research problem.KEY LEARNINGS After analyzing all the aspects of the data available and giving some important recommendations a suitable conclusion which should be derived for this study. restaurants etc. The primary objective of this research was to develop a complete understanding of the overall functioning of PepsiCo India including the sales and distribution network and marketing. following conclusion was inferred: The Sales and Distribution Network of Pepsi is very strong and almost flawless. PepsiCo is finding it difficult to counter the competition from Coke in carbonated Beverages Segment but it has distinct advantage and upper in almost all the other segments like snack food. Pepsi has good brand image and recall in the customer‟s mind but the most surprising thing is that when compared with Coke. 61 . sorts drink. The data collected provided a sound base for understanding the overall organizational set up of PepsiCo in India. However. Franchisee based operations combined with the Company‟s operations add strength to the overall presence of the Company in the market. Because of fierce competition PepsiCo has spent heavily on Ads in order to increase the brand recall and successfully face the competition. By analyzing the data and the literature review. PepsiCo India had the first mover advantage when it entered the market and it capitalized on that advantage to grab the market. before starting the conclusion part. Pepsi lags behind in terms of brand image. non-carbonated beverages.
ANNEXURE 62 .
? Q8) What are the issues of the retailer with PepsiCo? 63 . 31-35 yrs d. Q2) What are the sales figures in the present peak season as compared to coke? Q3) What kinds of customer base do you to cater to generally? a. 26-30 yrs c. 36-45 yrs Q4) Which is the most demanded carbonated drinks brand in the market? Q5) Is Visi cooler pure? Q6) What is the charging of the Visi cooler? Q7) Who has better schemes PepsiCo or Coco-Cola Co.ANNEXURE 1: Survey Questionnaire Q1) What is the name of the Retail store? With his location. 18-25 yrs b.
visit not working properly visi service issue visit tubelight fused Price issue stock not updated Price issue no motivation to sell can be used for promotion(no hordings) stock not updated stock not updated visit tube not working not happy with visit service stock price issue don’t want visit 64 . Store Ravi Pan Bhandar Mehra Store Jai Tea Stall Gokul Amul Parlour Pritam Store Honey Dew Beny Juice Ganga Prov.Store Place Bhagwan Talkies Bhagwan Talkies Bhagwan Talkies Bhagwan Talkies Bhagwan Talkies Bhagwan Talkies Bhagwan Talkies New Agra New Agra New Agra New Agra New Agra New Agra New Agra New Agra New Agra New Agra New Agra New Agra New Agra Dayal Bagh Dayal Bagh Dayal Bagh Dayal Bagh Dayal Bagh Dayal Bagh Age 18-25 18-25 26-30 18-25 26-30 31-35 18-25 18-25 18-25 18-25 26-30 18-25 18-25 31-35 31-35 26-30 36-45 18-25 18-25 18-25 26-30 31-35 36-45 26-30 26-30 26-30 PURITY Y Y Y Y Y N N Y Y Y Y Y Y N Y Y Y Y Y N Y Y Y Y Y N Charging 90 90 50 40 25 5 30 65 70 60 85 60 55 40 50 40 60 50 85 40 90 45 75 70 50 0 PepsiCo 100 100 40 60 100 100 40 45 70 65 45 70 35 80 100 35 50 90 100 40 100 60 70 100 75 10 Coke 0 0 60 40 0 0 60 55 30 35 55 30 65 20 0 65 50 10 0 60 0 40 30 0 25 90 Most Sold Brand Pepsi Pepsi Coke Dew Dew Pepsi Thumbs Up Pepsi Pepsi Mirinda Thumbs Up Pepsi Coke Dew Mirinda Thumbs Up Pepsi Pepsi Dew Pepsi Pepsi Mirinda Pepsi Pepsi Dew Coke Problem/Issues visit not visible incop.ANNEXURE 2: Survey Result S.No 1 2 3 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Outlet Name Manoj Dhaba Sunny Cold Drinks Bunty Pan Neelkanth Achaman Pracheen Petha Satkar Fun & Food T-Mart Jawahar Jalpan Shanti Sweets Baba Pan Pan Ravi Bakeries Agara Up Bhokta Rashtriya Up Bhokta Navratan Dayal Store Bansal Prov.
less stock hoarding issue ready stock not happy with salesman poor response of retailer stock taken acc.to scheme visi servicing issue hoarding/display request hoarding issue stock not valid to keep visi not happy with visi display can be benefitial want hoarding - 65 . Bhagwati Daily Needs Galaxy Point Lotus Hospital Kishan Pan Uphar Hotel Hari Chatni Dayal Bagh Hari Parwat Hari Parwat Hari Parwat Hari Parwat Delhi Gate Delhi Gate Delhi Gate Delhi Gate Delhi Gate Delhi Gate Delhi Gate Delhi Gate Delhi Gate Delhi Gate Delhi Gate Hari Parwat Hari Parwat Hari Parwat Hari Parwat Delhi Gate Delhi Gate Delhi Gate Bagh Fazana Bagh Fazana Bagh Fazana Deewani Xing Deewani Xing Deewani Xing Deewani Xing 18-25 18-25 18-25 26-30 36-45 31-35 18-25 18-25 26-30 36-45 26-30 18-25 18-25 18-25 36-45 26-30 26-30 18-25 31-35 36-45 18-25 18-25 36-45 18-25 18-25 26-30 26-30 18-25 18-25 Y N Y Y N Y Y N Y Y N Y Y N N Y Y Y N Y Y N Y Y Y N Y Y Y Y 40 40 50 70 20 50 45 30 70 50 50 40 55 20 30 60 50 40 35 45 30 40 45 50 45 35 65 45 55 40 85 85 100 100 50 70 100 100 60 50 100 50 100 60 60 100 100 50 100 55 40 50 100 90 65 50 100 100 100 100 15 15 0 0 50 30 0 0 40 50 0 50 0 40 40 0 0 50 0 45 60 50 0 10 35 50 0 0 0 0 Pepsi Mirinda Pepsi Pepsi Dew Mirinda Pepsi Pepsi Dew Pepsi Pepsi Pepsi Dew Mirinda Mirinda Pepsi Pepsi Pepsi Thumbs Up Thumbs Up Mirinda Coke Pepsi Dew Dew Pepsi Pepsi Pepsi Pepsi Maaza visi service issue not happy with cash system overall satisfied hoarding issue maintains v. Store Manish Comm.28 29 30 31 32 34 35 36 39 40 41 42 43 44 45 46 47 48 49 50 52 54 56 60 61 62 63 66 67 68 Ganga Pan Bhandar Yari Café Hotel Solitare Banarsi Pan Savon Sweets Satendra Cg Shop Shreeman Guest House Papaji Ka Dhaba Raman Pan Bhandar Hotel East Lite M A Pan Pushpanjali Hospital C-9 Restaurant A-1 Plaza Kallan Store Janta Bhojnalaya Gayatri Pco Y Cold Drink Tunda Kababi Yogesh Pan Prem Store Ravi Hospital Khushbu Pro.
69 70 71 73 75 Sharma Mishthan Jain Lasee House Jagdish Paties Hotel Goverdhan Dr.Kamlesh Tondon Canteen Deewani Xing Deewani Xing Deewani Xing Delhi Gate Bagh Fazana 36-45 31-35 31-35 26-30 18-25 N N Y Y Y 45 50 60 60 55 40 100 100 100 100 60 0 0 0 0 Pepsi Dew Mirinda Pepsi Pepsi stock can be incresed want more schemes can be potential outlet for market promotion 66 .
pepsico.moneycontrol. Prasana Chandra Financial Management. Bodhanwala How to read annual report – Raghu R.com http://www.com/ http://investopedia.Ruzbeh J.Prasana Chandra Internet http://www.mapsofworld.com/companyfacts/jaiprakashassociates/ http://en.Theory and Practice 7th Edition.icra.in/ 67 .REFERENCES Annual report PepsiCo Limited & Coco-Cola Co.org/ http://www.wikipedia.I M Pandey Understanding and analyzing Balance Sheet.com/ http://finance. Palat Investment analysis and portfolio management. FY 2007-06 FY 2008-07 FY 2009-08 FY 2010-09 Books Financial Management.