A

SUMMER TRAINING PROJECT REPORT

ON
“Analysis Of Marketing Strategy OF PEPSI For
Brand Improvisation”

For the partial fulfilment of the requirement

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO SUBMITTED BY
Dr. Munish Tiwari Aman Kumar Jha
Roll No: 1901520700012

MANGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY

GREATER NOIDA (U.P.)

Dr. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY,

LUCKNOW

1
 Mangalmay Institute of Management & Technology
Greater Noida

Certificate

This is to certify that Mr Aman Kumar Jha University Roll No. 1901520700012 is a regular
student of MBA 2nd year, full time degree course at out institute. His Project Report work titled,
‘Analysis Of Marketing Strategy OF PEPSI For Brand Improvisation’ submitted as part of
the curriculum for the award of the degree of Master of Business Administration from Dr. A.P.J.
ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW, is an original work done by
him. This work has not been submitted earlier in any form partially or fully to this or any other
Institute/University for any degree or diploma.

Supervisor Director

2
3
 Mangalmay Institute of Management & Technology
Greater Noida

Student Declaration

I, Aman Kumar Jha , bearing University Roll No 1901520700012 of APJ University, Lucknow,
enrolled as student of MBA at Mangalmay Institute of Management & Technology, Greater
Noida, solemnly declare that theproject report titled, ‘Analysis Of Marketing Strategy OF
PEPSI For Brand Improvisation’ embodies the results of original research work carried out by
me and the same has not been submitted in any form partially or fully for award of any diploma
or degree of this or any other University/Institute.

(Aman Kumar Jha )

Roll No.:
1901520700012

4
 ACKNOWLEDGEMENT

This project is the outcome of sincere efforts, hard work and constant guidance of not only me
but a number of individuals. First and foremost, I would like to thank Mangalmay Institute of
Management & Technology, GREATER NOIDA for giving me the platform to work with
such a prestigious company in the financial sector. I am thankful to my faculty guide Dr.
Munish Tiwari for providing me help and support throughout the Project Report period.
I owe a debt of gratitude to my faculty guide who not only gave me valuable inputs about the
industry but was a continuous source of inspiration during these months, without whom this
Project was never such a great success.
Last but not the least I would like to thank all my Faculty members, friends and family members
who have helped me directly or indirectly in the completion of the project.

(Aman Kumar Jha )

Roll No.:
1901520700012

5
 PREFACE

Research project is necessary part for fulfillment of MBA course. The emphasis in the
project is providing the study and an insight into Indian FMCG Business Scenario.

The Research project is designed to provide participation of BBA program as on the job
experience. This has given a chance to try and apply the academic knowledge and gain insight
into corporate culture. This helps in developing decision-making abilities and emphasizes on
active participation by the student.

I gained valuable experience & knowledge during the survey. The Project consists of my
findings after tabulation of collected data, then analyzed conclusions were drawn and finally
suggestions were put forward.

Aman Kumar Jha

6
 Contents

Chapter Title Page Number

1 Introduction 8 - 32
• About Company

• About the topic

2 Objectives 33 - 34

3 Scope of the study 35 - 36

4 Literature Review 37 - 38

5 Importance of the study 39 - 40

6 Research Methodology 41 - 66

7 Recommendation 67 - 70

8 Conclusion 71 - 80

9 Bibliography 81 - 86

10 Annexure ‘s 87 - 90

7
INTRODUCTION

8
 INTRODUCTION
The Project “Analysis Of Marketing Strategy OF PEPSI For Brand Improvisation in the
market with its compititors of PEPSI in Greater Noida ” Is designed on the lines of basic
investment decisions to be taken by the senior officials of PEPSI for the purpose of amendments
in the pre-existing distribution network in order to review and strengthen the routes. The findings
of the project are very crucial for the increment of the market share of PEPSI in the Greater Noida
& Beverage Market.
Though the process is an ongoing one but the decisions have to be taken on a strong base,
supported by facts and figures and that too on papers. This support can only be provided with the
help of an extensive and through analysis of the market and the data collected thereof.

The Marketing Development Co-ordinator who was the lead or the project head delivered the
objectives of the project to us expressly and we had to submit the day report to him along with the
draft report. He was the in charge of the project and gave guidelines and directions to approach
the project.
The distribution network of PEPSI is well known for its efficiency but company constantly strives
for the betterment of their distribution network system. Emphasis of our study was to focus on the
customer of company i.e., the retailers.
The Retail Mapping of Greater Noida is an integral step for the assessment, development and
betterment of this system. The distribution system not only comprise
the movement of the products but also incorporates the merchandising of the product, which is
very broad in its purview.
The project incorporates the analysis of the performance of PEPSI and probing into opportunities
of increasing the market share in Greater Noida . The entire process had to be in an organized
manner in order to deliver meaningful results for the
purpose of decision-making. The project was that of market research with surveys and
observations as its major phases with the objective of gathering of all important information
material for strengthening the position of PEPSI in Greater Noida.

9
PEPSI boasts of having the maximum market share in the beverage segment in Greater Noida and
is in constant process for the betterment of its product performance and customer as well retailer’s
satisfaction.

10
Company
Profile

11
 THE COMPANY PROFILE: PEPSI CO.

Caleb Bradham a New Bern N.C druggist who formulated Pepsi Cola founded Pepsi Cola
Beverage business at turn of the century. Pepsi Cola Company now produces and markets nearly
200 refreshment beverages to retail, restaurants and food service customers in more then 190
countries and territories around the world and generates revenue of over 18 billion dollars
PepsiCo World Headquarters is located in Purchase, New York. Tagline-“Lighting up lives, one
bottle at a time.....Pepsi - Liter of Light”
Pepsi Co. is the world leader in the food chain business. It consists of many companies amongst
which the prominent ones are Pepsi Cola, Frito-lay, Pepsi food international, Pizza-hut, KFC
and Taco bell. The group is presently into three most profitable businesses namely, Beverages
Snacks foods and Restaurants.
The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and other brands
worldwide and 7UP outside the U.S.market. They are positioned in close competition with Coca
Cola inc. of USA.
The Snacks food divisions manufacture and distribute and markets others snacks worldwide.
The restaurant segment primarily consists of the operations of the worldwide Pizza-Hut, Taco
bell and KFC chains PFS, PepsiCo’s restaurant distribution operation, supplies to Company
owned and Franchise restaurants in the U.S.
When Coca Cola changed its formula in 1985, Pepsi Stepped up its competition with its long
time archrival claiming victory in the Cola-wars. Coke and Pepsi expended their rivalry to tea in
1991 when Pepsi formed a venture with No.1 Lipton in response to Coke’s announced venture
with Nestle (Nestea).
“Pepsi Co is going blue”. This was the new color adopted by the company to strengthen its
brand globally. Also the company is changed colors from Generation X to GENERATION
NEXT. Although Pepsi holdings over the years have become diverse in such fields as the Snacks
industry and Restaurants industry, this portfolio will discuss its core business and its highly
successful business of Beverages. The soft drink industry customer base is probably the widest
and deepest base in a world that is flooded with some many categories. According to Beverage

12
Digest the customer base for soft drinks is a whopping 95% of regular users in the United States.
This represents a large field of potential customers for Pepsi Cola.
Pepsi prefers to segment itself as the beverage choice of the “New Generation”, “Generation
Next”, or just as the “Pepsi Generation”. These terms adopted in Pepsi’s advertising
campaigns are referring to the markets that marketers refer to as Generation X. The Generation X
consumer is profiled to be between the ages of 18 to 29. They have high expectations in life and
are very mobile and active. They adopt a lifestyle of living for today and not worrying about
long-term goals. Those Pepsi’s main emphasis on this segment they also have a focus on the 12 to
18 year old market. Pepsi believes if they can get this market to adopt their product then they
could establish a loyal customer for life.
Pepsi Cola throughout its 100 years of existence has developed much strength. One of the
strengths that has developed Pepsi into such a large corporation is a strong franchise system. The
strong franchise system was the backbone of success along with a great entrepreneur spirit.
Pepsi’s franchise system and distributors is credited to bring Pepsi from a 7,968 gallons of soda
sold in 1903 to nearly 5 billion gallons in the year of 1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This enormous ad
budget allows Pepsi to reinforce their products with reminder advertising and promotions. This
large budget also allows Pepsi to introduce new products and very quickly make the consumer
become aware of their new products.
Pepsi also has had the good fortune of making very wise investments. Some of the best
investments have been in their acquiring several large fast food restaurants. They have also made
wise investments in snack food companies like Frito Lay, which at present time is the largest
snack company in the world. Probably high on the list of strengths is Pepsi’s beverage line up.

13
 Pepsi has four soft drinks in the top ten beverages in the world. These brands are Pepsi,
Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Some other strong brands are All
Sport, Slice, Tropicana, Starbucks, Aquafina and a license agreement with Ocean Spray Juices.

14
ORGANIZATIONAL STRUCTURE

15
STRENGTH & WEAKNESSES
OF PEPSI CO.
Pepsi Cola throughout its 100 years of existence has developed much strength. One of the
strengths that have developed Pepsi into such a large corporation is a strong franchise system.
The strong franchise system was the backbone of success along with a great entrepreneur spirit.
Pepsi’s franchise system and distributors is credited to bring Pepsi from a 7,968 gallons of soda
sold in 1903 to nearly 5 billion gallons in the year of 1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This enormous ad
budget allows Pepsi to reinforce their products with reminder advertising and promotions. This
large budget also allows Pepsi to introduce new products and very quickly make the consumer
become aware of their new products.
Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers
and food service customers. This includes some of the world's best-loved and most-recognized
advertising. New advertising and exciting promotions keep
Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to
PepsiCola bottlers. The company also provides fountain beverage products.
Pepsi also has had the good fortune of making very wise investments. Some of the best
investments have been in their acquiring several large fast food restaurants. They have also made
wise investments in snack food companies like Frito Lay, which at present time is the largest
snacks company in the world.
Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has four soft drinks in the
top ten beverages in the world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and
Caffeine Free Diet Pepsi. Pepsi also has the No.1 tea in the United States, Lipton Tea. Some
other strong brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and a license agreement
with Ocean Spray Juices.
Pepsi Cola like any company has weaknesses. Ironically, the one strength that has been credited
for most of its success in the past has now become a weakness for Pepsi. This former strength is
the franchise system. The franchise system in Pepsi Corporate view has become a liability. Pepsi
in today’s market must be able to act as one instead of several separate units.

16
 The franchise system has become a hurdle to Pepsi because many of these franchises have
become very strong and will not be dictated by PepsiCo on how to handle their operations. Some
of these franchises are unwilling to support certain Pepsi products and at times produce their own
private label products that are in direct competition with Pepsi products.

Secondly the franchisees are not willing to make capital expenditures to keep up with
Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola at present
time does not operate a franchise bottling system).

As mentioned earlier Pepsi has tried to elevate this problem by spinning off their interest
in fast food restaurants but at present time are still guilty by association to many of the large
fountain accounts. The franchise system has also affected fountain sales due to the fact
franchisees are not willing to buy expensive fountain equipment to place in accounts mainly
because the profit margin is so low and could take years to recoup their investment. Pepsi also has
a weakness in the international beverage market.

Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena. Pepsi has tried
to enter this market by trying to do in three years what took Coke 50 years to do. This area will
take years for Pepsi to mature simply due to Coke’s dominance in the international market and
the strong ties that Coke has developed with these markets and their governments.

Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi customers
buy their products because of taste, price, packaging and promotional factors and of a wide
variety of brands. Pepsi customers also buy their products due to the high accessibility of Pepsi
brands.Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi
buys large shelf area and display areas so the customer can find them easier, viz, Convenience
stores, Restaurants, Movie theaters and almost and other conceivable spots.

Pepsi has a competitive advantage over Coke because of the image it portrays. Pepsi
promotes itself as the choice of the “New Generation”. Pepsi gets this advantage by

17
implementing such large marketing projects like “Project Globe”. This marketing plan, which
Pepsi spent 637 million dollars over five years, is to introduce the new rich deep blue coloring of
its packaging. The rich deep blue coloring represents eternal youthfulness and openness.
Marketing plans like this made Pepsi one of the coolest brands recognized among teens in the top
five and the only beverage product in this category.

Another competitive advantage that Pepsi has is in their product Mountain Dew. Mountain Dew
has grown a staggering 74.1% over the last five years. Mountain Dew has a 6.3% market share
and has recently become the No.4 soft drink in America. At this current pace Mountain Dew will
be come the first non-cola to reach the 1billion gallon mark in one year.
Pepsi also has an advantage as an innovator in their field. They are the first soft drink makers to
introduce a new one-calorie soda called Pepsi-One with, just approved by the FDA, Ace-K.
This new sweetener is slated to be a break through for diet soda in which it limits the after taste
associated with diet soda and brings a more cola taste to the product. Pepsi has always been a
strong No.2 against Coke and have become one of the world’s largest Companies. As far as
market share is concerned Pepsi stands strong.

PEPSI-THE INDIAN EXPERIENCE

• 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.

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 • 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.

• One of PepsiCo’s key strategies was to develop a completely local management team.

Pepsi has 19 company owned factories while their Indian bottling partners own 21.

The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official about it’

immediately ring a bell- it’s got to be Pepsi.

The advertisement tag ‘yehi hai right choice baby’ was the first Hinglish’ slogan ever

used in the in the Indian market. This slogan proved to be the best suited one for Pepsi and it was

a mega hit and at that moment of time.

Pepsi in a short span of its operations in India has found a place in the hearts and minds of

the Indian consumers. The success has primarily been due to the innovative and passionate Indian

team, which has been built over the years. Pepsi is a trendsetter managed and run by Indians,

where important decisions are taken locally.

Pepsi started its operations in India in 1989 and since then PepsiCo has set up a fully

integrated operation in India viz. Manufacturing, Research & Development, Marketing,

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Distribution and Franchising- covering fruit/vegetable processing, Exports, Snack Foods &

Beverages. In the mean time Pizza Hut and Frito Lay’s are the examples in this regard only.

Pepsi has 40 bottling plants in India, out of which 16 are company owned and 24 are owned by

Indian franchisees. One of the major player in franchisee is RKJ Group.

The RKJ group is India's leading supplier of retailer brand Carbonated and NonCarbonated soft

drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage

industry dates back to the sixties when it had the first franchise at Agra.

It has the license to supply beverages in the territories of Western U.P., part of M.P., half of

Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole

of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for

producing and marketing 44% of Pepsi requirement in India.

This group has brought name and fame to the Pepsi as in all this regions Pepsi is at the

commanding position and in the mean this group has diversified itself into ice cream, suiting and
shirtings, restaurants, beer plant in Mauritius & edible oil plant in Sri Lanka

20
 PEPSI-COLA IN INDIAN SCENARIO

Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has under gone a

radical change. When Pepsi-Cola entered, Parle was the leader with the Thums-up being its

flagship brand. Other products offering by Parle included Limca & Goldspot, another upcoming

player in the market was, the erstwhile bottler of Coca-Cola, “pure drinks”. Its offering includes

Campa- Cola, Campa-Lemon & Campa-Orange.

With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in for

more aggressive marketing to sustain its market share. The chronology of the initial phase

of the Cola wars in India was:

• 1977: Parle launched Thums-up and pure drinks launched Coca-Cola.

• 1998: In September, final approval for the Pepsi Foods Ltd. Project granted by the

“Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt.”

• 1990: In March, “Pepsi-Cola and 7-up” launched markets in north India.

21
• 1990: In May, The government cleared the Pepsi-Cola project again but with a

change in brand name to “Lehar Pepsi”, simultaneously it rejects the Coca-Cola

application “Citra” from the Parle, stable hited the market.

• 1991: Pepsi-Cola extended its soft drinks business and reached at national scale.

PepsiCola launched its product in Delhi and BoBBAy.

• 1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and

Parle start initial negotiation for a strategic alliance but took break off after a

while.

• 1993: Pepsi-Cola launched “Slice and Teem” captured about 25-30% of the soft

drink market in about 2 years.

• 1994: Pepsi bought “Dukes & Sones”.

• 1995: Pepsi-Cola lunched cans, having capacity of 330ml in various flavors

1996: Pepsi-Cola domestic and international operations combined into a Pepsi-Cola

Company. International and domestic operations combined into one business unit

called

“Frito-lay Company ”.

22
 1997: Pepsi-Cola brought “Mirinda Orange” opposite to “Fanta”.

• 1998: Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”.

• 1999: Pepsi-Cola launched “Diet Pepsi” in can and 1.5 Lit. “PET” bottle for health

conscious people.

• 2001: Pepsi-Cola launched Slice in “Tetra” Pack.

• 2003: Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season.

• 2005: Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of movie

Batman.

• 2005: Pepsi-Cola launched 7-up as “7-up ice”.

Pepsi-Cola launched “Mountain Dew ” to be more competitive with Coca-Cola

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PEPSI-COLA PHRASES
The Pepsi-Cola marketing phrase has also changed many times

1909-1939: Delicious and Healthful

1939-1950: Twice As Much For A Nickel Too

1950-1963: The Light Refreshment

1953-1961: Be Sociable

1961-1963: Now It's Pepsi For Those Who Think Young

1963-1967: Come Alive! You're In The Pepsi Generation

1967-1969: Taste That Beats The Others Cold

1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give

1973-1975: Join The Pepsi People Feelin' Free

1975-1978: Have A Pepsi Day

1978-1981: Catch That Pepsi Spirit

1981-1982: Pepsi's Got Your Taste For Life!

1983-1983: Pepsi Now!

1984-1990: Pepsi, The Choice Of A New Generation

1990- 1994: Pepsi nothing official about it

1995-2004 Yeh dil mange more (Pepsi India)

2004- now My Pepsi my world

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PEPSI - BRANDS AND PACK PROFILE

BRAND PACKS:
The products are generally available in three kinds of packaging:

25
• GLASS BOTTLES

• DISPOSABLE CANS

• PET JARS

26
FLAVOUR PACKS:

COLA (Carbonated Soft Drink):

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• PEPSI

• MIRANDA ORANGE

• MOUNTAIN DEW

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• 7UP

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MANGO:

• SLICE MANGO

MINERAL WATER: •

AQUAFINA

30
 THE RKJ GROUP

It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself.

Their 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.

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 27 Pizza Hut Restaurants under its company.

They have diversified into education by opening their first school in Gurgaon under the

management of Delhi Public School Society.

Companies are medium sized, professionally managed, unlisted and closely held between Indian

Promoters and foreign collaborators.

31
 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. The award was

presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George

Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O.,
PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company.

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OBJECTIVES

33
 Objective
To analyze, interpret and study the entire beverage market of Greater Noida,
Comparative study of the various brands, packs and flavors available in the market.
Analysis of the strong and weak point of the competitors products and compare it with PEPSI.
To assess the reach and feasibility of the product and give the output for further investment for
enhancing the distribution network along with assessing the efficiency of the current distribution
system.

Assess the promotional measures in the context to the sales of PEPSI and focusing our study on
the customer of company i.e., the retailers.
As obvious that any company is concern with the increase in sales of its products, our project was
in line with the companies’ objectives and all steps incorporate in the project were directed
to give an overview so as to attain its objectives.

The market research conducted by us was in accordance to the company’s rules and policies
which were quite material for the efficient and effective results and inferences to be drawn from
the entire process.
The market research was conducted in compliance of the given guidelines delivered to us
expressly to achieve the given objectives, which were as under:
1. Profitability 3. Improvement

2. Sales 4. To satisfy the customers

34
SCOPE OF
THE STUDY

35
 SCOPE OF THE STUDY

The distribution network of PEPSI is well known for its efficiency but company
constantly strives for the betterment of their distribution network system. Emphasis of our study
was to focus on the customer of company i.e., the retailers.

The Retail Mapping of Greater Noida is an integral step for the assessment, development
and betterment of this system. The distribution system not only comprises the movement of the
products but also incorporates the merchandising of the product, which is very broad in its
purview.

The project incorporates the analysis of the performance of PEPSI and probing into
opportunities of increasing the market share in Greater Noida . The entire process had to be in an
organized manner in order to deliver meaningful results for the
purpose of decision-making. The project was that of market research with surveys and
observations as its major phases with the objective of gathering of all important information
material for strengthening the position of PEPSI in Greater Noida.

PEPSI boasts of having the maximum market share in the beverage segment in Greater
Noida and is in constant process for the betterment of its product performance and customer as
well retailer’s satisfaction.

36
Literature Review

37
 Literature Review

The distribution network of PEPSI is well known for its efficiency but company constantly strives
for the betterment of their distribution network system. Emphasis of our study was to focus on the
customer of company i.e., the retailers.

The Retail Mapping of Greater Noida is an integral step for the assessment, development and
betterment of this system. The distribution system not only comprises the movement of the
products but also incorporates the merchandising of the product, which is very broad in its
purview.

The project incorporates the analysis of the performance of PEPSI and probing into opportunities
of increasing the market share in Greater Noida . The entire process had to be in an organized
manner in order to deliver meaningful results for the
purpose of decision-making. The project was that of market research with surveys and
observations as its major phases with the objective of gathering of all important information
material for strengthening the position of PEPSI in Greater Noida.

PEPSI boasts of having the maximum market share in the beverage segment in Greater Noida and
is in constant process for the betterment of its product performance and customer as well retailer’s
satisfaction.

38
Importance of
the study

39
 Importance of the study

Many companies, Pepsi included, had their eyes on the Indian marketplace for a longtime, for a
lot of different reasons, but the main reason being the market in the US was becoming very
saturated. So it was inevitable that Pepsi would want to expand their operations on a global scale.
India at the time, offered Pepsi an unlimited customer base, as “the per capital consumption of
soft drinks in India was only three bottles per annum (year).” (Mukund,2003) Nota lot was
working in Pepsi’s favor so they had to come up with a package so great, that Indian officials
could not turn it down. Pepsi entered the Indian market in 1985 in a joint venture with two local
partners, R P Goenka Group and Agro Product Export. As expected, very strict conditions were
imposed on the venture. Pepsi put forth a deal that promotes the development and export of India-
Agro based products, and in turn, they would be allowed to import their cola concentrate in order
to sell their Pepsi brand products in the country. Ultimately this deal was rejected for two
reasons: The Indian government wouldn’t allow the import of the cola concentrate, and the use of
a foreign name, Pepsi, was not allowed. So now Pepsi had to go back to the drawing board in
order to come up with a proposal that would the Indian government to approve. Their second
proposal was better thought out and impressive. In the proposal, Pepsi was very conscious about
the development and welfare of the country. In the second proposal they promised to create many
jobs for Indian citizens, bring new technology to the country, for fifty percent of the total amount
of produce to be exported, foreign brand names would not be used, and an agricultural research

center would be opened up. This proposal was approved by the Indian government in
September1988. Pepsi entered India in a joint venture with the Punjab government owed Punjab
Agro Industrial Corporation (PAIC) and Voltas India Ltd. Now that Pepsi had a foothold in India,
success would not be immediate. In fact, it would take years before the venture would be
considered a success. Any huge Multi-Nation Corporation who chooses to go overseas has to do
so with a lot of thought, as success is not automatically guaranteed. In fact, with the case of Pepsi
going to India , there were many key issues that occurred.

40
Research
Methodolo
gy

41
 THE MARKET RESEARCH PROCESS

The entire project was divided into five phases and each phase had its individual
significance and supplemented each other. The process had to be started from the grass root level
and it was very important to understand the market for this FMCG product, which is very fast in
production, distribution and consumption.

The five phases into which the project was divided were:
A. Route Riding
B. Retail Tracking
C. Corporate Tracking
D. Analysis of finding and observations
E. Segregating Greater Noida for WAP and SAP

The entire process was more of a Descriptive Research type and incorporated a formal
study of the specific problems faced by most FMCG companies an exploring the opportunities in
the untapped market. The survey was conducted on the basis of PEPSI product preference and
evaluation of sales forecast in the new and underdeveloped market including the evaluation of the
advertising and promotional measures. The data collected had to be systematically arranged,
analyzed and reported in a form congenial to take on the spot decisions.

The observation approach was adopted in the process by gathering the data essential and
material for the decision-making and with clear objective of increasing the market share of PEPSI
in the Greater Noida market. Customer preferences and satisfaction was also important

42
in assessing the market share but that was very clear that customers generally do not have loyalty
towards the product in the Beverage industry rather what matters the most is the product
availability which will be discussed later.

All the phases mentioned above have been discussed along with the observations,
problems, and other dimensions which have been encountered and experience in detail in the
following pages.

43
 A. ROUTE RIDING
The Beverage Industry or to be more specific, the Soft Drinks Industry has one of the most active
network in term of its production, supply, distribution, marketing, consumption and also personal
relations at the very second level of its distribution network. That is the reason why it is
sometimes said to be “Very Fast Moving Consumer Goods”.

Due to the above stated reason it becomes very essential to study and analyze the market of these
products from the grass root level. So in the Soft Drinks Company as PEPSI, route riding
becomes the first and foremost step in any of the activities to be undertaken be it any official so
we were no exceptions.

During the very initial days we were required to exercise Route Riding, the objective of which
was:

• To understand and analyze the market in its raw and basic form.

• To gain an in depth knowledge of the merchandising and processing activities of the

Route Agents and understand the Beverage market.
• To undertake the comparative study of the various brands and flavour packs of all
existing beverages or soft drinks

market and the market share and growth potential of each brand individually.

• To develop innovative ideas to enhance the distribution system.

Route Riding is basically accompanying Pepsi Vans along with the route agents and
understanding the way they conduct merchandising activities right from the charged vans leave
the depot to the entry of empty vans back to the depot. The Route Riding phase was for the initial
twinty days in which we had covered twenty different routes.

44
 The Route Riding is a crucial phase because the actual dealing with the retailers and their
dealing with the customers can be very efficiently understood through this process which is
important at all levels of decision making in the industry.

The Routes i.e., the Pepsi Vans were charged and left the depot by 7:30 in the morning,
accompanied by the Route Agent (R.A.’s). The RA’s were given the route planners and the
particulars of the products, flavors, and quantities along with the billing materials. The vans had
to cover the entire route and the RA had to do the merchandising and sales against cash, which
was a significant feature of this industry. The targets were given twice or thrice in a week that
was a challenge for them and after achieving these targets the RA’s was awarded with some
special incentives. As there exists a player like Coca Cola. So it had a lot to do with schemes,
discounts and other incentives.

The routes were allocated on the basis of individual areas and the demand of the product
in that particular area. The RA’s been responsible for the accomplishment of their sales target on
their routes and was given incentives on achieving the targets. Not only this, the

RA’s also had the responsibility of moving the flavors and packs in proportion along with the
proper display of the products for proper visibility and arrangement of products in brand order
along with “VISI purity”.

The RA’s had the responsibility of setting up Monopoly PEPSI Sales Counters where no
products except that of PEPSI would be available amongst the soft drinks and especially of Coca
Cola. These monopoly sales counters enjoyed special benefits in terms of discounts, schemes,
VISI’s (fridges), display boards, glow signboards, wall paintings, banners, posters and other
incentives.

45
 The RA’s had to achieve their sales target and surrender the daily sales proceeds with the
concerned Customer Executives along with the route planner and billing materials and gate pass
along with the details of sales on their route.

The entire activities of the RA’s was controlled by the Customer Executives, who also
assisted the RA’s in achieving their targets and were in charge of the sales performance in their
assigned areas. A Customer Executive had nine to ten RA’s under him and was responsible for
their performances as well. He was also concerned with the promotional activities on his routes
and handling of policy matters in the corporate regarding supply to industrial canteens and
cafeterias.

We as Research trainees were required to study and analyze the activities of the RA’s and
be familiar with the market. We had been provided Market Analysis Sheets by the MDC in which
we were required to record the observations of the retail outlets on a particular route.

The observations, which were required to be recorded in, were:

• The quantity of the cold and warm stocks of all brands and flavors available at the
outlet along with the outlet details.

• Inquiring about the satisfaction of the retailers in terms of sales of PEPSI products,
schemes, discounts, combo offers, and the benefits of promotional activities.

• Inquiring about the satisfaction by the current distribution network in context to

product availability of all flavors packs or individual flavors according to demand of customers,
rates billings.

• Inquiring about the behavior and merchandising of RA’s in accordance with the
companies’ regulations and record complaints against RA’s, company or products, if any.

46
 • Inquire about the performance of various brands and flavors packs and customer’s
response to those brands or flavors and also to educate the retailers about various schemes
and incentives to increase sales volume.

• Last but not the least, assessment of the effectiveness of, assessment of the effectiveness
of promotional materials and activities like, display boards, glow signs, signage, wall
paintings, posters, banners, racks, shelves, counters, VISI’s, and also impact of nation
wide advertising on brand loyalty by the customers.

The information so collected was required to be filled in the Market Analysis Sheet
(specimen on the next page) and reported to the MDC along with other information in order of
their seriousness.

47
 B. RETAIL MAPPING OF DELHI & NCR :
The Retail Mapping is the integral part of the project and the most crucial is taking
significant decisions regarding the enhancement of the distribution network involving heavy
investment on account of increasing the routes and starting new routes and promotional measures
on those routes to increase its market share in DELHI & NCR & NCR. The new routes, exploring
new markets required the decision to be supported with facts and figures which had to be
provided by the Research trainees on the basis of the survey conducted in the market and
processed data there of.

The retail mapping had to be conducted on the basis of the Retail Tracking Sheet (RTS),
which had been developed by the Marketing Development Coordinator and Customer Executives
of the DELHI & NCR & NCR unit which incorporated the retail outlets, their addresses,
proprietor, respondent etc and served as a vital database for all market since then for PEPSI in
DELHI & NCR and had to be incorporated in the project in accordance to the companies policies.

Objectives of Retail Mapping:

• Segregating entire DELHI & NCR for Strong Area Programme and Weak Area
Programme i.e., SAP and WAP.
• Assessment of retailer’s performance.
• Assessment of the level of promotional measures required for increasing market share
of PEPSI.
• Collection of required information for making investment decisions for the
enhancement of existing routes and opportunities for new routes in existing market as well as
exploring new market.

48
 • Classification of all retail outlets in DELHI & NCR into five broad categories viz, On
Route, Non Existence, Non Potential, Reachable and Non Reachable under the head,
Potential Retail Outlets.

The duration for the completion of the Retail mapping took duration of 20 days. The entire survey
was guided and directed by the Customer Executive and Daily report had to be presented to him
after assessment and analysis along with other findings and observations. The Data had to be
classified in a systematic manner and presented in a predefined format, which was further
reviewed by the Marketing Development Coordinator.

The Retail Mapping process incorporated of including of new outlets, which have been omitted or
newly opened, and the product availability on all these outlets. The major thrust was on
segregating the market for Strong Area Programme and Weak Area Programme.

The Strong Area refers to the routes on which the sales targets are met without much effort and
have continuous demand for the products. These areas are performing to the standards and are
contented with the level of promotion schemes and other sales boosting measures. The marketing
efforts are nominal in these areas because of the surplus demand and the area of concern is only to
ensure the proper and efficient supply of the products to meet the demand. In the DELHI & NCR
market approximately 32% of the market can be said to be strong areas and these areas include
the well-developed markets as shopping malls, movie theatres, convenios, hotels, restaurants
and bars etc. For these Strong areas, SAP only aims at maintaining the performance of the
product and enhancing the sales volume. It is not the area of serious concern for the company.

On the contrary the Weak Area refers to those areas or routes, which are critically low in
sales and the targets, are tough to achieve and require aggressive marketing support. The demand
in these areas is fluctuating or rather feeble. The routes are the area of concern for the company as
the demand is very low due to many reasons and the major one is the existence of the player like
Coca Cola in the market. Other reasons could be poor distribution network, inadequate
49
availability of the products on the outlet, inadequate promotional measures and marketing
support, undeveloped market as that of the interiors etc.

These weak areas had to be identified and the cause of their inferior performance had to be traced
through the Retail Mapping and the company had to be provided with the facts and figures to take
legitimate measure on the basis of the findings of the deficient performance of the product in
these areas. This involved the aggressive marketing strategy and heavy investment decisions to
strengthen these markets. For this purpose the classification of the outlets into five categories was
very crucial along with the other findings and observations discussed later. These five heads of
classification have been discussed as under.

■ ON ROUTE :

It refers to the retail outlets, which are covered by the Route Agents and visited daily for
sales and merchandising. The outlet is visited daily and actively involved in the sales of all
brands and flavor packs of PEPSI.

■ NON EXISTENCE:

It refers to the outlets which were merchandising the product are no more in existence,
i.e., they have diversified their business activity or have closed.

■ NON POTENTIAL:

It refers to those outlets, which are in existence but have very low potential in terms of
sales or are not keenly interested in merchandising the products of soft drink.
A careful assessment had to be done in case of Non Potential outlets, as they would turn to
be potential in near future. It was also the area of operation of project to motivate these
Non Potential outlets to undertake the merchandising of PEPSI.

50
■ POTENTIAL OUTLETS :

It refers to those outlets, which have the potential for the merchandising of PEPSI and
have the required investment capabilities and can be the profitable Point Of Purchase
of PEPSI by the customers. There were cases in case of these potential outlets, which
were already merchandising PEPSI, and those, which did not, dealt with beverage
products. The possibilities of setting monopoly counter were very fair at these outlets
and were given special attention. The Potential outlets had to be further classified in
two heads as below:

o REACHABLE POTENTIAL OUTLETS :

It refers to those Potential outlet which are reachable i.e., the products can be made
available with the PEPSI vans. The reachability decision had to be taken in context to
the accessibility of the vans at these outlets.

o NON REACHABLE POTENTIAL OUTLETS :

It refers to those Potential outlets which are not accessible by the PEPSI vans. These
outlets had to be considered because the sales volume can be increased at these outlets
and so alternative method of distribution and promotional activities have to be
evaluated and worked upon.

51
 C. CORPORATE MAPPING :

DELHI & NCR being an entirely industrial city had huge potential for the sales of PEPSI
in corporates as these concerns had factories, offices and canteens and the officials and workers
base was very strong. The process of Retail Mapping was followed by the Corporate Mapping,
which incorporated of tracing of the organizations and assessing the market for PEPSI in these
areas. Apart from these the database had to be updated to turn the non-potential market in the
corporate into profitable liaisons for the increment of sales volume.

THE OBJECTIVES OF CORPORATE MAPPING WERE:

■ Trace the organizations with and without canteens and cafeterias and estimate the
market for PEPSI.

■ Estimate the brand preference of PEPSI and COKE in the corporates and the reasons
thereof.

■ To review the product performance and satisfaction along with the expectations of the
customers in corporates including PEPSI Dispenser Equipments.

■ To assess the product availability and demand of the product (Traffic) in these
organizations as well as when the product has the optimum consumption e.g. daily,
delegations, meetings, parties, or other occasions and the customers i.e., whether the
officials or workers or both.

■ To ensure efficient supply and record any complaints or grievances thereof.

52
■ To assess the promotional measures being adopted by Coca Cola for tapping these
markets and locate the weak points in corporates having Coca Cola counters to
convert them into profitable opportunities.

■ The Corporate Mapping was the supplementary programme in the project to boost the
sales performance of PEPSI in Greater Noida and capture the market share of its
nearest competitor

■ . The analysis and findings were recorded on the format provide by the company
accompanied by the list of findings and observations in order or their preference and
seriousness along with all the relevant details about the organization.

■ The matters were discussed and analyzed carefully by the MDC. The corporate
matters had to be given a special care as these had huge potential for the product.

■ The specimen copy of the Corporate Mapping format is attached for reference. The

findings and observations have been discussed in the coming pages.

53
 D. ANALYSIS OF FINDINGS AND
OBSERVATIONS:

The main objective of the company is to increase the brand preference and market share
so any information material form this point of view had to be take into account along with the
formats provided by the company for predefined information recording and analysis of those
recordings and present the information in an organize and systematic manner in a condensed form
reflecting the actual position of the market.

The information had to be recorded in the format along with the relevant information as
per the objectives of the research and an analysis of that information had to be made and present
them in an understandable format so that immediate inferences can be drawn. Generally those
information had to be presented in percentages and the other findings and observations had to be
evaluated and a list of findings had to be arranged in order of their seriousness and areas of
serious concern along with the outlet details.

After the analysis sheets and formats have been surrendered to the C.E’s after analysis by
the trainees it was further analyzed and evaluate by him and a brief analysis was made each day of
the daily report. The CE’s further forwarded these reports after retaining the reference copy, to
MDC for further review and reference.

54
 E. SEGREGATION OF DELHI & NCR :

As discussed earlier that the major objective of the Retail Mapping of DELHI & NCR
was to segregate the market for PEPSI for the Strong Area Programme and the Weak Area
Programme. These Programmes have been discussed under the Retail Mapping Head. The Data
and fact collected by the survey had to be analyzed and presented in a systematic form in order to
draw meaningful inferences.

The finding of the Route Riding and the Survey conducted during the Retail Mapping and
the Corporate Mapping were combined together and analyzed together to reach a final report ie,
the RETAIL MAPPING SUMMARY or THE CONDENSED DRAFT REPORT, which gave the
entire picture of the actual position if PEPSI in DELHI & NCR . The report so prepared was on
the basis of the Retail Tracking Sheet and the other supplementary finding and observations were
considered to reach a consensus of declaring the route as a weak area or a strong area.

The reports were analyzed thoroughly by the Customer Executives and a meeting was
held for the assessment of the routes and the reasons of unfavorable performance in the weak
areas and how to improve the sales on those routes. The discussion comprised of the further
investments for the enhancement and extension of the routes and the level of promotional
measures required in these areas.
The performance of Coca Cola was also reviewed simultaneously and a comparative
study was made to assess the performance and growth in the industry. These data and figures
were compared with that of the last year and a growth percentage was reached which also served
as a basis of declaring an area as a Weak Area.

As already mentioned PEPSI is a VFMCG so the marketing strategies are going to be

very dynamic in nature. The Customer Executives had to formulae day to day strategies and these
were communicated to RA’s in the morning when they were going to leave the depot and this
interaction among R.A.and C.E. was to be known as Gate Meeting.

55
The programmes were to be based on the seriousness of the problems and accordingly a mild or
aggressive marketing, promotional and investment programme was to be formulated.

56
 FINDINGS & OBSERVATION

The reports of each phase of the project had to be supplemented by the information, data,
facts and figures and significant findings and observation to support the feasibility of decisions to
be taken on the basis of the Retail mapping Summary or the CDR. The information so recorded in
each phases of the project had to be listed in order of their relevance and seriousness and
presented in a form to facilitate immediate inference.

Some of the important observations have been listed below:

■ Soft drink business’s behavior is not governed by brand loyalty so the availability of
the right brand, at the right place, at the right time is the key for winning consumer in soft drink
business.

■ The most important and satisfying observation was that, PEPSI had approximately
64% market share in the soft drinks market in DELHI & NCR and some of its brands like
Mirinda Orange and Mountain Dew were performing above standards apart from PEPSI Cola in
spite of the Coca Cola with two cola flavor packs i.e., Coke and Thumps up.

■ The present distribution system of PEPSI is the best in the entire FMCG industry in
DELHI & NCR and the major strength
of PEPSI. The enhancement in the distribution network would definitely increase the
market share of PEPSI.

■ The retailers played a very critical role in the increment in the sales volume of the
product and the had to be kept satisfied in order to increase the market share by offering better
schemes, discounts, display materials such as VISI’s, racks, counter, signage, wall paintings and
better amount for purchase of shelf space for display.

57
■ The existence of sub-dealers and super stockiest are also the major area of problem, as
they do not move the schemes and other display materials and incentives information to
the retailers, which is one of the reasons for the dissatisfaction of retailers.

■ The cut throat competition between PEPSI and COKE had lead to the never ending cola
war and price war which has brought down the profit margins which is one of the major
grievances apart from the common complains pertaining to schemes, incentives and
display materials.

■ The other major issue was the supply of PEPSI from the bottling plants in Delhi and
Punjab against the company policies. These plants supplied the products at discounted
rates and violated merchandising principles of PEPSI.

■ Another critical issue was the presence of duplicate products of PEPSI in the market. The
details of these outlets have been surrendered to the company for action against these
outlets.

■ The position of PEPSI in the corporates was not up to the mark and Coca Cola had a better
scene in this context. One of the reasons can be assigned to the product positioning of
PEPSI and Coca Cola.

58
 Analysis

MARKET STATUS OF PEPSI PRODUCT

PEPSI-COLA PRODUCTS

19%

59
PREFERENCE OF SOFT DRINKS IN QUANTITY

2 LT.
24%

200 ML
330 ML (CAN)
37%
2%

600 ML
12%

300 ML
25%

60
RATIO OF CONSUMPTION OF SOFT
DRINKS
PER 100 CONSUMERS

Once in a
week

61
The other Statistics and finding have been presented in the form of various
charts on the coming pages:

DEMAND OF SOFT DRINK

62
 CONSUMTION OF PEPSI BRAND

□
OTHERS, 5
PEPSI
7UP, 10
SLICE. 15
PEPSI, 40 □
M.DE
MIRINDA, 15M.DEW, 15 W
□
MIRIN
DA
□
SLICE
□
63
7UP
 RATIO OF PEPSI AND
COKE IN DELHI & NCR

OTHERS, □
11 PEPSI, PEPSI
^ 45 □
COCK
COCK, □
44^ OTHER
S

64
Which brand purchase is the most?

PEPSI Vs COKE

43
□PEPS
57% □COKE

65
 SWOT ANALYSIS

STRENGTH:

1) Good market penetration.

2) Motivated channel partner.
3) Well defined routes.
WEAKNESS:

1) All brands were not available in at least 80% shops.

2) Complaint handling was not up to mark.
3) Supply in certain area is very irregular and also route agents are not covering full routes.
4) Poor signage and display is making the routes week for the sale of Pepsi.
5) Interpersonal relationship with the company officials and the route agent is not
satisfactory.

OPPORTUNITY:

1) It is observed that in some newly establishing areas many new outlets are opening , Pepsi
needs to concentrate on these new outlets and can gradually increase its sale in these area.
2) Large number of mix outlets can be changed to Pepsi exclusive and coke exclusive to mix
only by luring them good and efficient supply, glow sign and cooling equipments.

THREATES:

1) Coke is the only nearest competitor and it is catching up in the market penetration
through price skimming and other promotional scheme.
2) Some local brands commonly known as kancha , Tip Top , Shine and the launch of
Catch soft drink a product of DS group are causing decrease in sale in some areas.

66
Recommendations

67
 RECOMMENDATIONS

The Project Retail Mapping was concerned only with providing the organization with all
the necessary information required to strengthen the position of PEPSI in DELHI & NCR in the
form of reports incorporating all information in an analyzed and summarized form. But some
critical and major issues, which have been identified on account of extensive analysis, required
suggestions to be put forward on the basis of the current market scenario.

■ There should be uniformity in, schemes, and discounts, which are offered to the retailers
and should be based on a specific parameter such as sales volume, to avoid dissatisfaction
and biasness among the retailers.

■ Activities of sub dealers and super stockiest should be controlled and checked in order to
ensure fair prices and distribution of schemes and incentives to small retailers to avoid
discontent among smallholdings and outlets.

Every possible step should be taken for the satisfaction of the retailers, as they are the most
important supplement to the sales promotion measures and nationwide advertising
campaigns of the company in context of boosting the sales and enhancement of the brand
image of PEPSI.

■ The operations of the bottling plants of the surrounding territories should be controlled in
order to ensure that they do not supply the product in other territories not under their area
of operation.

68
The company should modify its advertising strategy and educate the customers about its age-old
existence and enhance its brand image. This will appeal to the target customers of middle and
older age groups apart from the younger generation in which PEPSI has a good hold.

■ First and foremost things are that, whatever the policy is going to be formulated it should not
be same for all the areas. Different policies should be framed and implemented at different areas
by looking and keeping various variables in the mind like buying habits, preferences, education
level financial position of that particular area and standard if living etc.
■ Rural market being a very potential segment needs very quick and prompt efforts to be taken
to capture this high volume market.
■ Many retailers complained regarding irregularly in visit by the executives. They also said that
executive give very bad response to their complaints. It is necessary that executive should make
frequent visit to cover each outlet and try to provide them best
■ Pouches, foreign particles were found in few bottles, so proper quality control measures
should be implemented as company’s reputation are at stake.
■ There is a great market of soda (1 Lit.) but the supply of this pack is very poor, so the supply
should be made possible quickly.
■ Quality of PET bottle should be improved so that most problems can be minimized.
■ Soft drink is still considered a treat virtually a luxury, so it possible company should cut down
its price especially of cans.
■ Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets etc should be
made at regular interval.
■ Claim should be provided to the deserving retailers.
■ Wall painting should be made regularly in the area, as it is a good medium of advertisement.
■ Proper attention should be given to the retailer’s problem so that they take interest to increase
the sale.
■ Proper advertisement should be made at railway station, bus stand, posh area, major market
and economies place etc.

69
■ A company may create favorable impression among the youth if they sponsors small events
like college festivals, university programs, school functions, fashion shows, quiz
programs etc.

LIMITATIONS

> The retailers in many cases reluctant to answered many questions.

> The respondents may be biased on influenced by some other factors.

> Time and money were the greatest limitation in carrying out the survey.
> A number of retailers (pan-shop) being illiterate, it took us lot of time in collecting
information.

> The mere information which we get from the retailers is not sufficient to arrive at a
conclusion.

> The seasonal changes affect the sell.

70
Conclusion

71
 CONCLUSION

The business of Soft Drink industry is significantly based upon the impulse buying, so it
is very necessary to Merchandise products of PEPSI efficiently and present them in such a
manner so that it can motivate the consumer and generate a thirst in consumer to consummate it.

Though, PEPSI has a strong position in DELHI & NCR & NCR with the support of its
efficient distribution network, aggressive marketing efforts and advertisements along with
attractive schemes but there still exists potential market in DELHI & NCR & NCR to be
exploited and a suitable Weak Area Programme or the Strong Area Programme has to be
formulated to improve its market share depending upon the area under consideration.

Soft drink business’s behavior is not governed by brand loyalty so the emphasis is not
only on creating the market but also on retaining it. The availability of the right brand and flavor
pack, at the right place, at the right time is a key for winning the customer in soft drink business.
Keeping these facts in mind it becomes very important to treat the retailers with concern and
satisfy them by various measures and so that they are loyal towards PEPSI. Public relation is also
critically important in this industry.

Following are the main key points of the research:

> Service aspect of agencies is very effective, they deliver their product according to the
demand a just in time.

> After conducting the market survey of retailer in Ghaziabad city, I analyze that Pepsi-
Cola is dominating over Coca-Cola in the sale of PET.

> After analyzing the market and calculate the weightage, the result comes out that
Mountain Dew is the leading product of Pepsi-Cola.

72
> Consumers do have a demand for 200 ml and 2 lit. bottle.

> Retailers have problem in display material.

> Most of the place like cinema hall and educational institutions are dominated by
PepsiCola.

> Retailers have complaint regarding the PET, that more better quality bottle should be
used.

> Aquafina (Pepsi-Cola) in Ghaziabad city dominated Kinley (Coca-Cola) mineral water.

> Retailers have a demand of some offers and free gifts.

> Kinley soda (Coca-Coal) is also dominated by Lehar soda (Pepsi-Cola) in Ghaziabad city.

> Maaza (Coca-Cola) is also dominated by Slice(Pepsi-Cola).

> It was seen that Lehar Soda (1 lit.) in particular remains short during the season.

> In the market there is only a retailer on which the sale of the different product of different
company depends.
It uses mass marketing strategy to target the groups of the customers of different
demographics and geographic regions. Segmentation is the
important strategy which helps the brand in targeting the specific group of customers with
differentiated offerings.
Pepsi is the mass market product which uses undifferentiated targeting strategies in order to
be competitive and increase its sales.

73
 In the non-alcoholic beverage market, it has positioned itself as a young, vibrant and
passionate brand which challenges the conventional things.

Marketing Mix :

The second largest soft drink player in the world, Pepsi has implemented several smart strategies
in the last decade to improve its turnover and profits. Pepsico’s expansion in snacks like Lays,
Quaker oats, Cheetos and Kurkure have given them an edge over Coca cola. Although Coca cola
is still the number one selling brand, Pepsi has reduced their dependency on Soft drinks by
expanding their product mix.

There are 2 main product types in which Pepsi is present in India.

Beverages
Soft drinks - 7up, Duke’s, Mirinda, Mountain dew, Nimbooz, Pepsi, Slice, Tropicana,
Mineral/Bottledwater - Aquafina Sports Drink - Gatorade Food Products
Snacks - Cheetos, Kurkure, Lays, Lehar, Uncle chipps Breakfast - Quaker oats
Thus, Pepsi, unlike its major competitor Coca cola, has expanded in the breakfast as well as
snacks segment. Coca cola on the other hand is present only in the beverages section. The
advantage of Pepsi’s snacks segment is that brands like Lays, Kurkure and Cheetos are in
great demand. Quaker oats which is a recent addition is also increasing in demand. Thus the
turnover resulting from the Food products is helping the bottom line of the company.

74
Pepsi is in an industry which is dominated by the two biggies - Coca cola and Pepsi. Thus the
pricing of Pepsi is competitive. In a war between Coca cola and pepsi, neither of the brands can
win if they enter a price war. This is because the cost of manufacturing and transportation is huge.
Thus, these companies are likely to enter a brand war rather than enter a price war.
Pepsi is known to give promotional discounts as well as discounts on bulk buying. For customers,
as the container size rises, the discounts also rise. Thus a 2 litre bottle of Pepsi will be relatively
cheaper per 100ml as compared to a 250 ml pack. For distributors, the discount is based on the
quantity as well as the payment terms. The better the payment terms or the higher the quantity,
the more is the discount given thereby keeping the distributor motivated.
However, Pepsi has to lower its price for the top retailers and bulk buyers. For example - Indian
retailers like Big Bazaar, Reliance fresh, as well as hypercity are bulk buyers. Similarly fast food
chains like Mcdonalds, KFC are also bulk buyers. These bulk buyers negotiate with the soft drink
brands on the basis of price and sell their products in huge quantities. Thus, pepsi has to drop
prices in these places which affects the operating margin of the brand. The margins of the
company are better through the distributors and lesser through bulk buyers. However, the sales of
the company are higher to bulk buyers as compared to distributors.

Place in the marketing mix of Pepsi

Pepsi has a huge distribution network in India. It has to be huge because the brand needs to be
present in every nook and corner of the country to increase its sales. The primary mode of
distribution is through distributors who in turn give it to retailers, restaurants, and convenience
stores. The secondary mode of distribution is directly through the company to bulk buyers and
major retailers who buy directly from the company.

Thus distribution channel is as follows

1) Company > Distributor > Small retailers / Small buyers > End customer
2) Company > Bulk buyers > End customer

As cost is saved in the 2nd example, companies are able to give better margins to Bulk buyers.
The major challenge in distribution is the cost of bottling as well as the cost of transportation.

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Bottling of Pepsi is done at bottling plants. In India, Pepsi has 36 bottling plants out of which 13
are franchisees whereas 23 are company owned. The soft drink once packed is moved to the
company warehouse from where it goes to distributors and bulk buyers.
One of the strongest reason Pepsi retains its brand image is its promotions. Pepsi targets mainly
youngsters through various Brand ambassadors. In India, the brand ambassadors have been the
best celebrities as well as sports person of the country including Sachin tendulkar, M S Dhoni,
Amitabh Bacchan, Ranbir kapoor and others.

Mountain dew has a message of “Darr ke age jeet hai” which is again focused on adventure sports
thereby targeting youngsters. Snacks like Kurkure and Lays target different segments. Kurkure is
known to target household snacks and middle aged group whereas Lays targets youngsters and
the party mood. Gatorade targets only sports as it is a sports drink. And Quaker oats, which is a
recent launch as compared to the other products, targets breakfast with a bit of masala.

Pepsi uses all the media channels for its promotions. Along with ATL, pepsi is also present in
BTL marketing. Furthermore, along with traditional media channels, Pepsi also uses trade
promotions and sales promotions at point of purchase. Discounts and packaging are always being
bundled to give the best combination and value to the customer to increase purchases as well as
the brand equity.

The bottomline is that Pepsi cannot exist without the proper promotions. This is because Pepsi
belongs in the FMCG market, and in FMCG, you either perform or perish. The FMCG market is
one of the toughest market for businesses. However, Pepsi is not only surviving, but it is thriving
in the FMCG market. Thus, hoping that Pepsi keeps re inventing its marketing mix so that it
remains in the top 2 category of soft drinks.

Digital Marketing Campaigns and Big Data:

Digital strategy is a very important part of its marketing campaigns. Effectiveness of Pepsi’s
digital campaigns is also an important determinant of its sales and profits. Popularity of these
digital campaigns affects its level of sales and profits directly. Some of its digital campaigns

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have enjoyed immense popularity like the ‘Bring Home Happiness’ campaign containing a 20
minutes long video . This video grew so popular that people watched it more than one billion
times. It leveraged the power of social media to run the campaign. The brand is using digital
technology in other aspects of business too but in the area of marketing, the role of digital
technology and that of social media is especially very important. Since a very large number of
customers are now found online and can be reached through social media and other digital
channels, digital marketing has become the central focus of Pepsi in terms of marketing. Apart
from promoting its brands separately, Pepsi also uses digital marketing for creating higher
loyalty and higher customer engagement. Its another promotional campaign titled ‘Made for
This’ targeting the millennial generation and featuring High school athletes was also highly
popular. The campaign that featured young athletes underscored that Gatorade was made to fuel
young athletes and their passion . Marketing and media environment are changing rapidly which
have made it mandatory for the brand to use new channels for advertising and promotions. Pepsi
is also leveraging Big Data to create real time marketing messages that help it market its brands
more effectively. The brand also uses consumer research for the purpose of designing marketing
strategies that help it grow its reach and effectiveness.

Sports Marketing and sponsorships: Apart from these promotional campaigns, the brand has
also relied heavily on sponsorships and partnerships to grow brand awareness as well as for
building customer loyalty. 2017 marked its second year of partnership with UEFA champions’
league. Through this partnership, it has continued to promote some of its biggest global brands
including Lays, Gatorade and Pepsi across more than 100 markets . ‘Sports marketing’ is a key
part of the brand’s marketing strategy. The relationship between Pepsi and Sports is old. It has
struck partnerships with several sports bodies globally to promote its brand in most important
markets. In 2015, it announced a new marketing partnership with National Basketball
Association. This partnership will also allow for the promotion of Pepsi products through the
WNBA, NBA Development League and USA Basketball . Pepsi owned Gatorade already had a
partnership with NBA. The new partnership will promote its Mountain Dew through signage and
other branding efforts during the NBA events. Pepsi has entered similar partnerships in cricket
too for the promotion of its brand and products.

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Pepsi Social Media Marketing: Marketing is not complete in the 21st century without social
media. Facebook to Twitter and YouTube and even Instagram, all of these are the most favourite
stops of the leading brands. Both Coca Cola and Pepsi have maintained an impressive social
media presence that works to drive user engagement high and create higher level of customer
loyalty. Most of the video campaigns run by Pepsi have become so successful because it could
leverage the power of social media channels. One of its campaigns in Greater China garnered
more than a billion views. Its other campaigns on social media have also been liked by people.
Video campaigns can be run through YouTube as well as Facebook and Twitter. Moreover, the
Facebook and Twitter accounts can be used to keep fans and followers updated. Let’s have a look
over how Pepsi has connected with its fans and followers through social media.

Facebook strategy : Facebook is the primary social media channel that brands and marketers
utilise for marketing and promotions. On Facebook, Pepsi has more than 37 million followers.
However, it also has separate accounts for separate products. Mountain Dew has more than 8.5
million followers and Pepsi Max also more than 1 million . One can easily judge the popularity of
the brand by its number of fans. It promotes its products as well as sponsorships and events, all
through its Facebook accounts. It is not only about the social media campaigns but it also
promotes its TV ads and other promotional events on Facebook.

Twitter strategy: Twitter is also a very important stop for the soda beverages brand where Pepsi
has several different accounts for the different countries like Pepsi India and Pepsi Cambodia.
Pepsi’s main Twitter account has more than 3.1 million followers. Like Facebook, Pepsi also
promotes its brand and products through Twitter. Apart from photos and videos of products and
campaigns, it also uses Twitter to share picture and video advertisements on Twitter. Just like
Facebook, videos of promotional events are also shared on Twitter which helps it reach its
millions of followers. However, the content is not the same across all the Twitter accounts since
the accounts differ from country to country.

YouTube Strategy: Apart from Facebook and Twitter, Pepsi also uses its YouTube account to
promote its brand and products through attractive videos. It has uploaded more than 140 videos to
its ‘YouTube’ account including advertisement and educational videos promoting its brand and
products. It has more than 8,00,000 followers on the video sharing social media channel.

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YouTube is the most attractive social media platform for sharing videos and several of its videos
have been watched more than 4 million times which shows how YouTube can expand a brand’s
reach without any major investment .

Instagram Strategy: Since Pepsi uses both pictures and promotional videos to promote its brand
and products. It shares a very large number of pictures for promotions, many of which are same
as its advertisements. These posts are liked and shared by its followers. On Instagram, it has more
than a million followers. However, Pepsi shares both videos and pictures on Instagram since the
social media channel has both the features.
Apart from these digital channels and social media, Pepsi also uses traditional mediums of
promotion like print and Television. In this way, it uses a large mix of traditional and innovative
channels for the promotion of its brands and products. It does not just increase its reach but has
helped maintain a large and loyal customer base globally.

Major Investments in CSR and Sustainability: For global brands like Pepsi whose portfolio
includes several respectable names, it is critical to maintain a good image and reputation. Any
form of damage to reputation or brand image due to any reason or loss of consumer confidence
can cause a fall in demand for Pepsi’s products. To retain its popularity and strong image, Pepsi
invests in CSR and sustainability. It launched its ambitious Performance with Purpose Agenda
2025 which focuses on several things including sustainability.

Agenda 2025 has three important focus areas that include people, products and planet. As a
part of this agenda, Pepsi has achieved some key milestones that include -

• Assisting 6 million women and girls through investments in communities throughout the
world.
• replenishment of 2.7 billion litres of water locally in high risk watersheds.
• Provided 11 million people with safe water access since 2006.
• Associates completed 1 million hours of training in 2017.
• To cut down on fuel emissions and fuel costs Pepsi placed one of the largest orders for Tesla’s
new electric semi trucks for its distribution network.

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• Provided 260 million servings of nutritious foods and beverages to the underserved
communities and customers.

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Questionnaire

81
 QUESTIONNAIRE

Name

Address

Contact No.

Q.1. Are your customer satisfied with Pepsi ?

a. yes b. no

Q.2. Do you provide home delivery of Pepsi ?

a. Yes b. no

Q.3. How many houses?

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Q.4. Which brand of soft drink do you sell?

a. Only Pepsi-Cola b. Only Coca Cola c. Both.

Q.5. Which quantity of soft drinks you have?

a. 200 ml b. 300 ml c. 500 ml

d. 2 lit. e. All.

Q.6. Which brand of soda do you sell?

a. Leher Soda (Pepsi-Cola) b. Kinley(Coca Cola)

Q.7. Which brand of mineral water do you sell?

a. Aquafina (Pepsi-Cola) b. Kinley (Coca Cola) c. Others.

Q.8. Chilling equipment owned by you?

a. Only Pepsi-Cola b. Only Coca Cola c. Both.

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Q.9. Do you get timely supply of these brands with proper schemes?

a. Yes b. No.

Q.10. Is your chilling equipment working properly?

a. Pepsi-Cola = Yes.... No....

b. Coca-Cola = Yes.. No..

Q.11. During breakdown of chilling equipment who gives better service?

a. Only Pepsi-Cola b. Only Coca Cola c. Both.

Q.12. Whose racks do you own?

a. Only Pepsi-Cola b. Only Coca Cola c. Both.

Q.13. Is there increase in sales due to display of the racks?

a. Yes b. No.

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Q.14. Availability of glow boards provided by company through promotional scheme.

a. Yes b. No.

Q.15. Are your customer SATISFIED of PEPSI schemes ? a. Yes b. No c. Cant

Say

Q.16. Is the brand of pepsi is high on your sale?

a. yes b. no c. cant say

Q.17. . What %tage increase in sale you get after the schemes offered by PEPSI?

a. 5-15% b.25- 30% c. more than 50

Q.18

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 200 ML 300ML

STOCK PCI CCX PCY CCX

REGULAR

600 ML 2 LIT
PCI CCX PCI CCX

STOCK
PET

86
Bibliography

87
 BIBLIOGRAPHY

Marketing Management (Written by Kotler Philip)

Principles of Marketing (Written by Gupta C. B)

Research Methodology (Written by Kothari C. R )

Magazines:

S Advertising Management S Business India

S Business Today

S Business World
www.pepsiworld.com

www.pepsico.com

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www.google.com
EMBER, S. AND STEEL, E.

O'BRIEN, S.

> PepsiCo Web/ CorpProf| PepsiCo.com (n.d). Retrieved November 14, 2012. From
http://www.pepsico.com/Investors/Corporate-Profile.html

> PepsiCo Web/ StgyInveGrow. | PepsiCo.com (n.d). Retrieved November 14, 2012
https://www.pepsico.com/PressRelease/PepsiCo-Announces-Strategic-Investments-to-Drive-
Growth02092012.html

> PepsiCo Web/ StgyInveGrow02. | PepsiCo.com (n.d). Retrieved November 14, 2012
https://www.pepsico.com/PressRelease/PepsiCo-Announces-Strategic-Investments-to-Drive-
Growth02092012.html

> PepsiCo Web/ HumanSus. | PepsiCo.com (n.d). Retrieved November 14, 2012
http://www.pepsico.com/Purpose/Human-Sustainability.html

> PepsiCo Web/ RespMark. | PepsiCo.com (n.d). Retrieved November 14, 2012
http://www.pepsico.com/Purpose/Human-Sustainability/Responsible-Marketing.html

> PepsiCo Web/ NutriLabel. | PepsiCo.com (n.d). Retrieved November 14, 2012
http://www.pepsico.com/Purpose/Human-Sustainability/Nutritional-Labeling.html

> PepsiCo Web/ Part&Commu | PepsiCo.com (n.d) Retrieved November 14, 2012
http://www.pepsico.com/Purpose/Human-Sustainability/Partnerships-and-Community.html

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> PepsiCo Web/ EnvirSusta | PepsiCo.com (n.d). Retrieved November 14, 2012
http://www.pepsico.com/Purpose/Environmental-Sustainability/Water.html

> PepsiCo Web/ BSCR | PepsiCo.com (n.d). Retrieved November 14, 2012
http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/
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> PepsiCo Web/ TalSust | PepsiCo.com (n.d). Retrieved November 14, 2012
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> BalanceScorecard | PepsiCo.com (n.d). Retrieved November 14, 2012

http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/
Default.
aspx

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