A PROJECT REPORT ON COMPARATIVE ANALYSIS OF EFFECTIVENESS OF MARKETING INPUTS AND STRATEGIES OF PEPSI AND COKE

Submitted in partial requirements of two year full time Masters of Business Administration of Punjab Technical University, Jalandhar Session (2007-2009)

Submitted By: Ravneet kaur M.B.A 4th SEM Roll No 7065222437 Specialization: Marketing

Gian Jyoti Institute of Management and Technology Phase 2, Mohali

CERTIFICATE 1
This is to certify that the thesis entitled, comparative analysis of effectiveness of marketing inputs and strategies of pepsi and coke submitted for the degree of MBA, in the subject of Business Administration (Major- Marketing) for the Punjab Technical University, Jalandhar, is a bonafide research work carried out by Ravneet Kaur (7065222437) under my supervision and that no part of it thesis has been submitted for any other degree This assistance and help received during the course of investigate have been fully acknowledge. PROJECT GUIDE

CERTIFICATE 2

This is to certify that the thesis entitled, comparative analysis of effectiveness of marketing inputs and strategies of pepsi and cokesubmitted by Ravneet Kaur (7065222437) to Technical University, Jalandhar in partial fulfillment of the requirement of the degree of MBA in the subject of Business Administration (Major Marketing) has been approved by the Students Advisory Committee After an oral examination on the same, in the coordination with the external examiner.

____________________ Dr. Aarti Mahendru Project Guide

___________________ External Examiner

ACKNOWLEDGEMENT
The project which marks an important place in the intellectual journey that we have been subject. It provides a platform to workout in the actual arena so as to know how the real world looks like. This project would not have been possible without the kind assistance and guidance of many people who indeed were helpful, cooperative and kind during the entire course of my project. First of all I would like to thank our Honble Chairman Mr. J.S Bedi who gave me opportunity to being a part of this institution. I would also thanks to faculty guide Mrs.Aarti Mahendru who guided me in this project and was the constant source of references for me and showed full interest at each and every step of my project. I am also grateful to the respondents who took out their precious time to provide me with valuable information to carry out this research.

Lastly, I owe my gratitude to my esteemed institution Gian Jyoti Institute of Management and Technology which gave me support to complete this project.

Ravneet Kaur

TABLE OF CONTENTS SR.NO 1. 2 3. 4 5. 6 7. 8. 9. 10. 12. OBJECTIVES OF THE STUDY RESEARCH METHODLOGY ANALYSIS AND INTERPRETATIONS CONCLUSION RECOMMENDATIONS BIBLIOGRAPHY TOPIC INTRODUCTION COMPANY PROFILE MARKET PLANNING AND RESEARCH SWOT ANALYSIS STP ANALYSIS PAGE NO. 6-8 9-28 29-34 35 36-37 38 39-40 40-49 50 51-52 53

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ANNEXURE

54-56

EXECUTIVE SUMMRY
Enterprise engaged in marketing activities seek competitive advantage through market research.As the project deals with Comparative analysis of Effectiveness of the Marketing inputs and strategies of Pepsi and Coke . So in this project Indian soft drink major, Parle Products Ltd was considered as the undisputed market leader but it was caught napping by the entry of the international major PepsiCo.Still both of them managed to carve out portion of the market between them, with PepsiCo getting the Lions share. So they went along for few years. But where Pepsi goes, Coca-Cola cannot be far behind. Coca-Cola stormed into India to pick up where it left off in 1977 with the re-entry of Coca-Cola in the Indian market in 1993 on October 23, the situation changed drastically. Later the Parle brand Like Limca and Thumps up were taken over by Coke. Ever since then there have been extreme competition between Coke and PepsiCo for control of the market. The project is divided into: Title page Certificate Acknowledgement Index Executive Summary Finding and Analysis Recommendation Bibliography Bio data

INDIAN SOFT DRINK INDUSTRY

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Soft drinks have come up to stay in the world everywhere, and have more or less become a part of our lives. Regardless of whether it is summer or winter, soft drinks are consumed throughout the year. However, wide fluctuation exits in the consumed pattern and for obvious reasons, the consumption reach its peak in the summer. In India, the soft drinks industry came into existence in the late 50s and early 60s.Since then, many brands have come up over the years. Similarly, many brands have wilted under the intense competition (as if to balance the situation) and high cost of advertising. This has led to the idea that sales depend on advertising to a large extent. In the late 80s and early 90s the industry had grown rapidly with the active support from the government. The major thrust from the government came in the form of the new industrial policy of 1991, which propounded the concept of liberalization and promoted foreign investments. By definition this intensifies the competition and ultimately benefits the consumers in terms of quality products and wider choice. Over the years, the industry has grown at a very fast rate. The growth was beyond the expectations of many. It was expected that the international players would leave no stone unturned to capture the huge potential of the Indian market. After the exit of Coca-Cola and Fanta in 1977, various brands appeared on the Indian scene, courtesy Indian entrepreneurs, which fizzled out over a period. Only a few managed to endure over the passage of time. Indian soft drinks major, Parle products Ltd was considered as the undisputed market leader but it was caught napping by the entry of the international major PepsiCo. Still, both of them managed to carve out portions of the market between them, with PepsiCo getting the Lions share. So they went along for few years. But where Pepsi goes, Coca-Cola cannot be far behind. Coca-Cola stormed into India to pick up where it left off in 77.With the re-entry of CocaCola in the Indian market after a gap of 16 years in 1993 on October 23,the situation drastically, to put mildly, and it has been a story of one-upmanship ever since for control of the market.

As the figures indicate later in the report, Coca-Cola is the market leader in the market. Though the industry is now growing at a faster rate, the growth is confirmed to the metros and mini metros. About two third of the market share can be accounted to the metros themselves. These figures led experts to believe that it is the urban population in general which is fond of soft drinks at any given time or occasion. On the other hand, the consumption in the rural areas is sporadic, to use a term. This may be attributed to the fact that most of the rural India still considers as a luxury. A clear example of this is that the consumption of soft drink in rural areas is mostly in marriage parties or in other ceremonies, where it is considered as a mild status symbol. Be one of reasons why the per capita consumption of the soft drinks is quite as compared to other countries. Whatever may be the reason for it, the mere size of the Indian middle class. generally referred to as GIMC (the great Indian middle class),and is estimated to be around 200 million, which is larger than any single market in the world. This along with the positive trend towards westernization and social change presents an extremely lucrative market for any investor around the globe, especially in the fast moving consumer goods (FMCG) segment.

PROFILE OF PEPSI CO
PepsiCo is the 18th largest American Company with an annual turnover of(2005) of US 80 billion. PepsiCo has its worldwide operations in 190 countries. The company employees over half a million persons its operations in beverages, Snacks foods and restaurant operations across the world, and is possibly the largest employer. PepsiCo has set up a fully integrated operation in India-manufacturing, research and development, marketing, distribution, covering fruit/Vegetable processing, export, snacks foods, beverages and restaurants, including franchising of beverages territories for beverages business and restaurant it has set up a holding company to further accelerate growth in the future through new initiative and joint ventures. PepsiCo started its operation in India in 1989 with the formation of Pepsi Foods Limited. PepsiCo is full committed to India and the national objective of development of technology, and accelerating export and employment. Since its entry in 1989. It has brought in over Rs.1000 crores(US 300 million) in foreign exchange, as well as technology and how and used its global network to develop value-added local and export businesses. All of Pepsis business are employment intensive PepsiCo employs over 35000 persons directly indirectly in its beverages business and other operations. and 32 bottling plant and new projects are combining up in west Bengal, Karnataka, Rajasthan, Gujrat and Maharashtra. In addition, the company has 3 food processing Units in Punjab manufacturing snacks foods, soft drink concentrate and red chill paste. The company also has a modern Rice Processing Unit in Sonepat (Haryana). The Company, since its inception, has contributed significantly towards backward linkage with the farmers and helped them to generate higher incomes by increased productivity and quality raw material products required for food processing industry. Recently, the Company has started a Red Chilli Paste Unit in Punjab, which sources chillis form 1500 farmers in over 250 village of Punjab.

In the last six year, the company has brought together an excellent Indian Management team comprising of 200 highly talented Manager, who have been trained to handled beverage and snacks foods business competently not only in India but abroad as well, and has probably one of the best full time operating Board comprising of experienced professionals. In May 1990, Pepsi was launched in Jiapur. Pepsi broke its advertising campaign Are you ready for the magic featuring Remo Fernandes and Juhi Chawla on 15th august 1990. Since then this magic has won millions of Indian heart. Starting from zero base, Pepsi today enjoys a leadership in Cola category. The Companys brand Pepsi, Seven Up, Mirinda and Slice. It also has Dukes, Lemonade and Dukes Soda. The snack food are Ruffles, Cheetos and Lehar Namke

COCA-COLA PROFILE
The Coca-Cola Company is the worlds leading manufacturer, marketer and distributor of nonalcoholic beverage concentrated syrups, with world head quarters at Atlanta. The Company and its subsidiaries employ nearly 29,000 people around the world. Syrups, concentrates and beverages 8

bases for Coca-Cola, the company flagship brand and over 230 other companys soft drinks brands are manufactured in nearly 200 countries around the world. By contract with the Coca-Cola Company or its local subsidiaries, local business are authorized to bottle and sell the company soft drink within a certain territorial boundaries and under that ensure the highest standards of quality and uniformity. The Coca-Cola Company stock with ticker symbol KO is listed and traded in the United Sates on the New York stock exchange. Common stock is also traded on the Boston, Cincinnati, Chicago pacific and Philadelphia exchanges. Outside the United States Companys stock is listed and traded on German and Swiss exchanges. The Companys operating, management structure consist if five geographic group plus The Minute Maid Company. The North America Group of companies the United States and Canada. The Latin America. Group includes companys operations across Central and South America from Mexico to tip of Argentina. The greater European markets in western Europe and the rapidly growing nations of Eastern and Central Europe. The Africa and the Middle East Group encompasses the Middle East and the entire continent of Africa. The Asia Pacific Group has operations from India through the pacific region including China, Japan and Australia. The Minute Maid Company, the companys juice business in Houston Texas is the worlds leading marketer of juices and juice drinks. The Minute Maid Companys product include Minute Maid Premium Lemonade Iced Tea, Minute Maid Coolers, Hi-c Blaster and Five Alive. The Coca-Cola Company has a commitment more than a century old to social responsibility through philanthropy and good citizenship. The Companys reputation for a good corporate citizenship results from charitable donations, employee volunteerism, technical assistance and other demonstration of support in thousand of communitys worldwide.

BIRTH OF A REFRESHING IDEA

John Styth Pemberton first introdued the refreshing taste of Coca-Cola in Atlanta. It was May of 1886 when the pharmacist concocted caramel colored syrup in a three legged brass kettle in his backyard. His first distributed the by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy for five cents consumer could enjoy a glass of Coca-Cola at the soda fountain. Whether by design or by accident, carbonated water was teamed with a new syrup, producing a drink was proclaimed Delicious and Refreshing. Dr.Pembertons partner and bookkeeper, Frank Robinson suggested the name and penned Coca-Cola in the unique flowing script that is famous world wide today. Mr Pemberton thought the two Cs would well in the advertising. By 1886 sales of Coca-Cola averaged nine drink per day. That first year Dr. Pemberton sold 25 gallons of syrup shipped in bright red wooden kegs. Red has been a distinctive color associated with the No1 soft drink brand ever since and for this effort Mr.Pemberton grossed $50 and spent $73.96 on advertising.

In 1981 Atlanta entrepreneur Asa G.Cand had acquired complete ownership of Coca-Cola business. Within four years his merchandising flair helped expand consumption of Coca-Cola to every state

and territory. In 1919 The Coa-Cola Company was sold to a group of investors for $25 million. Robert W.Woodruf become the president of The Coca-Cola Company in 1923, and is more than six decades of leadership took the business to unrivaled height of commercial success, making CocaCola an institute world over.

COCA-COLA INDIA
After 16 year of absence, Coca-Cola returned to India in 1993. The Companys presence in India was cemented in November that year in a deal that gave Coca-Cola ownership of the nations top soft-drink brand and bottling network. Coca-Cola India has made significant investment to build and continually improve its business in India, including new production facilities, wastewater treatment plant, distribution system and marketing equipment. During the past decade the Coca-Cola system has invested more than US$ 1 Billion in India. Coca-Cola is one of the countrys top international investors. In 2003 Coca-Cola India pledged to invest further US$ 100 million in its operation. Coca-Cola business system directly employee approximately 6,000 local people in India. In India they indirectly create employment for more than 125,000 people in related industries through their vast procurement supply and distribution system. Virtually all the goods and service required to produce and market Coca-Cola locally are made in India. The Coca-Cola system in India comprises of 27 wholly company qwnwd bottling operations and another 17 franchising owned bottling. Coca-Cola India has two subsidiaries. Hindustan Coca-Cola beverages Pvt Ltd. Hindustan Coca-Cola marketing Pvt Ltd.

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PEPSI IN INDIA
Indias most critical challenge is to reduce unemployment in the first instance, before a leap of new employment. According to the famous economist Lord J M Keynes every investment creates employment. The answer to Indias problems of unemployment is investment. Only new investment generates employment, low investment can only results in low employment. After the liberalization of Indian economy in 1991, the substantial foreign fund inflow, primarily in the consumer sector has already taken place. This has generated tremendous economic activity resulting in major employment growth in this sector. One good example of foreign investment can be PepsiCo, which began to invest in India in 1989, and in 1994-95 itself, has invested over Rs.1000 crore. Most of Pepsis business has a heavy focus on service to the consumers and retailers, both in domestic and international markets. The company claims to have generated, directly and indirectly, over 35,000 jobs. Since its early, Pepsi has not only brought in substantial foreign investment, but also technology and know how, which have been used is local and export business. The international focus of its export business is also very employment friendly. PepsiCo has set up a fully integrated operation in India-manufacturing, research and development, marketing, distribution, covering fruit/vegetable processing, exports, snacks foods, beverages and restaurants, including franchising of beverage territories for beverage business and restaurant it has set up a holding company to further accelerate growth in the future through new initiative and joint ventures. PepsiCo started its operation in India in 1989 with the formation of Pepsi Foods Limited. PepsiCo is fully committed to India and the national objective of development of technology, and accelerating exports and employment. Since its entry in 1989 it has brought in over Rs.1000 crores(US 300 million) in foreign exchange, as well as technology and know-how and used its global network to develop value-added local and export businesses. All of Pepsis businesses are employment intensive PepsiCo employs over 35000 persons directly and indirectly in its beverage business and other operations. Pepsi and its franchise have

28 bottling plants and new projects are combing up in West Bengal, Karnataka, Rajasthan, Gujarat and Maharashtra. In addition, the company has 3 food processing units in Punjab manufacturing snacks foods and soft drink concentrate. The company also has modern Rice processing units in Sonepat(Haryana) The company, since its inception has contributed significantly towards backward linkage with the farmers and helped them to generate higher incomes by increased productivity and quality raw materials products required for food processing industry. Recently, the company has started a Red chilli paste unit in Punjab, which sources chillies from 1500 farmers in over 250 villages of Punjab. In the last six years, the company has brought together an excellent Indian Management team comprising of 200 highly talented Manager, who have been trained to handled beverage and snacks food business competently not only in India but abroad as well, and has probably one of the best full time operating Board comprising of experienced professionals. In may 1990, Pepsi was launched in Jaipur. Pepsi broke its advertising campaign Are you ready for the magic featuring Remo Fernandes and Juhi Chawla on 15th august 1990. Since then this magic has won millions of Indian heart. Starting from a zero base, Pepsi today enjoys a leadership in Cola category.

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Pepsis modern concentrate plant, set up with an investment of Rs.12 crore, at Channo in Punjab, supplies concentrate to 25 beverage manufacturing units spread over the country in addition, it generated substantial employment in units supplying raw material s, distribution vehicles, glass bottles, plastic crates and to small artisans, painters and small traders engaged in a number of marketing activities. As most of the ready to serve aerated soft drinks in this country are solving returnable glass bottles, a huge distribute on force is required to sell products and pick up empties. In 1977, Pepsi expects to touch sales involve of about 2,500 million bottles. Pepsi services all retailers at least thrice a week and in summer, very often, twice a day. The company along with the franchisees has 25 bottling plants spread all over India, of which PepsiCo owns 12 plants. Over 10,000 persons are engaged in the soft drink manufacturing units.

After the bottles are filled in the units, a primary movement takes place from the factory of the warehouses and a secondary movement from the warehouse to the retailers. Primary movement from factory to warehouse requires, 1, 20,000 trucks per annum, covering distance to 30 miles to 600 Miles per day, depending on warehouse distance from the factory. For secondary distribution, over 1,800 trucks, 3,000 three wheelers, and over 5,000 handcrafts and pushcarts are employed by Pepsi system. Three people a driver cum salesman ant two loaders man each truck. Pepsi also has over 1,500 carrying and forward agencies (C&F) and distributors. Employment at distributors average 10 person. This works out to an employment of over 15,000 persons. Another feature of Pepsi system is installation of 4,000 vending machine known as fountains for dispensing chilled Pepsi soft drinks in various outlets such as railway stations, airport, recreation spots, restaurants, departmental stores, cinema house, etc. One person resulting in employment of 4,000 person persons mans each of this vending machine. A large number of technicians are also engaged in the maintenance of these expensive machines, which were assembled in India. Pepsi has four vendors to manufacture the 150 million disposable cups, which are given free along with chilled Pepsi to the consumers from the fountain Pepsi operation. In the last 18 months, PepsiCo has acquired a fleet of 500 trucks that are used for distribution of soft drinks to the retailers and proposes to add directly, another 150 trucks in the next six months. Pepsi bottlers will be adding 500 trucks and three wheelers, to intensify their distribution. This really proves that single economic activity like beverages has resulted in major benefits to a number of industries. The system generates substantial employment in marketplace activities such as signage, hoardings, billboards and other advertisements, where a large number of painters and other craftsmen are engaged. For example, the number of persons engaged in installation of signage, sign boards, glow signs and their abdication would be of the order of 120 persons in Delhi alone, dedicated to Pepsi alone. Similarly going by these numbers, the national employment figure for dedicated painters and neon-sign fabricators could be over 1,500 persons. The company recognizes Indias potential of skilled manpower, which is available abundance. PepsiCo is planning to invest another Rs.500 crore in its Indian operation in the next two years. Each year, Pepsi is likely to generate an additional employment of 5,000 persons in its business alone. What striking about Pepsis Indian operation is, that the operation has nothing foreign about it, except the Rs.300 crore in foreign exchange, technology and expertise it has brought from its parent company. The concentrate, returnable glass bottles, crates, trucks are all Made in India giving employment opportunities to thousands of people. The entire staffs of Pepsi in India-right from the workers to supervisory staff, including the chairman of the company in India, are all Indians. In fact

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PepsiCo, the parent company has posted many Indian Managers in important assignments outsides India a true recognition of Indian managerial the technical talent.

COKE COMES TO INDIA

Coca-Cola comes to India with fanfare in the fifties. For a number of days. The Hindustan Times and other newspaper of New Delhi full-page advertisement showing a big boy in uniform with a soft drink crown as the cap. There as no indication of the product. After a few days Coke was introduced it was an entirely new drink which fascinate people. It soon become the national drink. For the first time a soft drink was available from one corner of the country to another. The person who brought Coca-Cola to India was the father of late Sardar Chranjit Singh, Sardar Mohan Singh. A practical man Mohan Singh realized that to popularize Coca-Cola and make it a best seller it was necessary to catch them young so he focused on youngsters in the society. Mohan Singh developed the new concept of a plant visit. Young students from the school were invited to visit the bottling plants. The company buses picked them up from the school and after the visit dropped them back. During their visit to the plant they were shown the bottling process and the company manager talked to them. For them it was fun, as they were treated to free Coke along with gifts when they left the plant. It was a solid strategy to win them permanently to the product. Another strategy was developed to popularize Coke in the rural areas. The company realized that to become a mass consumption product, one has to go to the village. They gave much importance to the distributive network. The company trucks supplied coke to even the remotest village. Coca-Cola introduced another novel concept the franchise system. The company could not manufacture the product all over the country therefore selected companies were given right to bottle Coke. The master company provide the concentrate to the bottlers. Special delivery vans were designed by the company was used all over the country. The expenses were born by the bottlers and the master company had a system of sharing the sale money. It was an extension of the franchise system which was successfully working the United States in various industries. Coke started as a four anna, later 25 paisa per drink. And it is said that when Sardar Mohan Singh began his company, he took a vow that he would not increase its price. He religiously followed it till his death. The price was raised after his death. The End Comes Coca-Cola was the master of al it surveyed for three decades. So strong was the brand that it did not allow any other brand to develop at the national level. Gold spot and Thums-up were popular in western India. Local drink were available in almost all the cities, but were not preferred by the middle class. However when the price of Coke deviated from the 25 paise benchmark and started rising upward because of the rising costs and taxes, Soda fountain emerged serving fresh lemonade, this too could not challenge Coke. Then came the sudden jerk in 1977. after winning the election the Janta party Government at the centre asked the company to close down in fact, they wanted Coca-Cola to reversal the formula and when they refused, the company was asked to close. For sixteen years Coke was in exile. It created a vacuum during which the company promoted Coke developed is own Coke Campa-Cola and used similar logo. It however could not catch the taste of the people. The market was captured by Parle. It almost had the monopoly as the national drink.

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One reason was that pure drink, the originator of Campa-Cola was facing management problem and was not able to take the bull by the horns, Parle held the market till Pepsi came in the late eighties. The Indian Company owned by Ramesh Chauhan and his younger brother prakash wasc well entrenched in the Rs. 1,200 crore soft drink industry in India. Parle was not only the market leader but it over the years developed loyal consumer when the American soft drink giant entered the market via Punjab, both Pepsi and Parle were apprehensive of each other. Parle feared that Pepsi, being the multinational had the muscle power to kill a soft company which was dependent only on a few product. Moreover Pepsi came on the support of Voltas a Rs. 1,212 crore company backed by the TATAS, and the Punjab Government it came despite strong opposition by many jobbers and political party because of strong groundwork done by Voltas and the Punjab Government. This was the time when the Government at the centre could not say not to Punjab. Pepsi was also not very confident of its position. Parle was strong brand in the country, which controlled the bottlers and distributive network. The political situation by the time Pepsi opened its shop became uncertain. Therefore it was not sure of the Government policy. Investment in bottling plant was huge and time consuming. The only thing which Pepsi had to fear, was time itself. Parle decided to fight Pepsi and drew up a strategy. It pre-attempted the new drink by offering huge discounts to the retailers and distributors. Many of the benefits were below the counter. Parle was carefree till the early ninties when the Congress Government of P.V.Narsimha Rao, opened up the sealed markets India. Coke, which was looking at the Indian market since it left in 1977, wanted to make an entry as early as possible after all Pepsi was its rival all over the world. Times were running out and if it had to enter alone the market would not wait. Therefore it started secret Parleys with Ramesh Chauhan. It was great corporate news on 18 September 1993 that Ramesh Chauhan has sold its brand (Thums-up, Limca, Maaza, and Citra)to Coca Cola for a staggering sum of $60 million. A small sum for the $13 billion Coca-Cola company which gave it an instant ownership of the countrys top soft drink brands of the country having the largest market share. Coke also got an access to Parle 60 plant bottling network and a well controlled distributive system On it Coke decided to develop a modern infrastructure to expand fast in the worlds fastest soft drink market. The Future Scenario The battle lines are drawn now, it is going to be a war between Coke and Pepsi. The international brand fighter, clashes between Parle and Coke apart. The two bulls have already divided on the battle ground-it gong to be cola and not orange or lemon. During the past twelve month, it is said that the cola share in the soft-drink output has gone up whileall other segments have lost share. From about 40 percent, its share has gone up to about 54 percent to 15 percent. Other segments have also shown a fall off between three to four percent each.

In the future scenario it seems the two giants Pepsi and Coke will control the market. Though Cadbury Schweppes has introduced three drinks Crush, Canady dry and Schweppes but all faded out in the competition. Not sure of the market place are the tetra packs, which were launched about a decade back and become popular because of their easy handling Parle Agro introduced Frooti and mango based drink packet in 1985.

DISTRIBUTION NETWORK

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Tools of distribution : The distribution network of any organization accounts a lot for its success. The Franchise maintained an effective and regular distribution network. The company follows its distribution through: a) Agency System: Under this system franchise appoints its agency in a region which then looks after the demand and supply factor of its territory. The agency then supplies to the dealers and retailers. The sales team has sales executive, salesman and helpers for carrying the effective transaction with its dealers. Distribution involves trucks with different load capacities and they reach and go through the route according to the demand made in that route. Under the agency system the company appoints a carrying and forwarding agent and the company provides with vehicles. The salesman is in the rolls of the company. In case of the agency system the company gives a lesser commission than it is given to the distributors. b) Distributor system: In this system the company appoints distributors to cater smaller areas where bigger vehicle cant enter In this case the distributor owns the vehicle but the commission is higher than the C&F agent. System of Distribution in the PepsiCo: We will demand by creating and leading the production an d distribution system best capable of delivering our products to the customer who sells them and the people who buy them. Distribution = Sales + Delivery + Merchandising + Local Account Management There are two types of distribution system: Direct Distribution: In direct distribution, the bottler partner has direct control over the activities of sales, delivery and merchandising and local account management at the store level like C&F. b) Indirect Distribution: In indirect an organization, which is not part of PepsiCo system, has control of one or more distribution elements like distributors.

With in direct distribution, there are also two types of sales systems: Advanced sales and conventional sales. 1. Conventional sales: In conventional sales system, the distribution manager estimates the products customer may require on a particular route. A truck is then loaded with the product anticipated to meet those needs. 2. Advanced sales: In this system man calls on each account with specific purpose of making sales call, but does not actually deliver the products, then a separate person delivers the ordered products. Distribution consists of all the activities involved in the physical transfer of goods from the manufacturer to the ultimate consumer. It is a part of marketing one of 4 Ps. The other three being product, price, promotion Major Aspect of Physical Distribution : a) Channel of distribution: Retail marketing is 30% classical marketing and 70% operations. That may sound like an oversimplification, broadly, PepsiCo has identified five distinct channels transportation, education and entertainment, grocer and retail services, eating and drinking and institutional through which it will address the specific needs of the consumer, channel marketing addresses the consumers need based on his environment, therefore availability, afford ability and packaging become the critical issues in the various channels. b) Factors which influence the distribution channel:

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In the marketing jargon this is called selection of the chain of distribution. An analysis has to be done as to what kind of market coverage is needed. Whether the company wants to go for intensive or extensive distribution. Another method of selecting the distribution channel is to study the: Product characteristics : A peculiar feature about the soft drink trade that, the demand for the product cannot wait, as is the case with other consumer goods. When a person is thirsty and demands for a soft drinks is not available at that moment this also determines the length of the distribution channel.

Market characteristics : Who are the users of the product, how many are they? Manufacturing characteristics : Some time the manufacturer may have certain policies and within these policies he might decide whether the chain should be long or short. c) Cost of physical distribution : Physical distribution costs involved in the physical transfer of goods from the manufacturers to the consumer. There are six major heads of expenses in physical distribution. Trade Discount: This is the discount given to wholesaler and retailer for service they perform of stocking the product, providing shelf space and ensuring redistribution from wholesaler to retailers. Packing costs: This includes the boater packing materials-wooden crates, straw etc. Inventory costs: Cover the interest on value of stocks carried at central warehouse of the factory and the branch deposits before they are sold to the sole distributor or stockiest or relatives who even may be the first purchaser from the company. Warehousing costs : These include the costs of the depots and central warehouse costs such as rent, electricity, water, etc. Transportation costs : These include the freight charges incurred in sending soft drinks either by trucks or three wheelers from the manufacture to the first purchaser. Insurance costs : This is the premium paid for protection of the soft drinks with insurance cover, when they are stored in the warehouse or during transport.

Distribution Channel:

Produced

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Product

Bottling Plant

Distributor

Retailer

End Consumer

ABOUT MAJOR OUTLET

The major outlet of Pepsi are the counter who have to share of Pepsi more than 50% in some cases it is 100%. So those outlet whose share of Pepsi selling is more than 50% and nearly 100% of pure counter. These type of outlets are inrolled in the beginning in off season that means January to February. Company gives them yearly target and also give money on that. That cost of money may be different for different kinds of product such as on 200ml product it may some thing on 300ml it will be some thing and on per bottle as 500ml and others it may be other. These outlets will sell only Pepsi so they are called monopoly counters when company start some schemes on product for every short term on that monopoly counters only one benefit is given by the company either monopoly or the scheme on that counter. They have to achieve the target which is given by the company to them.

PACKAGES
Returnable:These containers are meant to be brought back to the plant to be washed and redistributed after beverage is consumed. Like 200ml and 300ml packs. Non returnable:These containers are meant for single use only that is it is not to be brought back to the plant. Like pet bottles 0f 500ml and 2000ml packs. Single serve:These package contains less than 1 liter and are meant for providing one beverage serving. Like 200ml, 300ml and 500ml packs. Multi serve:These packages are larger and contain more than 1 liter and provide multiple serving. Like 1.5 liter and 2 liter packs.

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PRODUCTS OF PEPSI AND COKE

Pepsi Coke
1. Pepsi Cola 1. Thums-up 2. Mirinda Orange 2. Coca-Cola 3. Miranda Lemon 3. Limca 4. Slice4. Maaza 5. Lehar 7up 5. Fanta 6. Mountain Dew 6. Sprite 7. Lehar Soda

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Market-Planning and Research

Marketing to the customer: Managing customer relationship starts with trade channel business planning to improve customer satisfaction. Understanding: Customer is important. This includes gaining a basic understanding of each trade channel Flexibility: It is important to grow with the customer, and become more sophisticated more experts ourselves. Adding Values: Customer must be helped in increasing their sales and profits the way should be found out to serve them better. Planning in Soft Drink Industry: Planning is bridging the gap between where we are and where we want to be in the future. The main areas of planning in soft drink industry are: Planning of target: The target for a new year is planned with a target of achieving 20% growth on the previous years peak season production. Planning of dealer: Again in increase of 20% on the number of previous year dealers is done in different regions. Planning of routes and vehicles: A route covers all the outlets in a specific region or locality. With the increase in number of deals new routes are planned and hence proper number of vehicles for distribution is analyzed and planned. Planning of empties: The new empties or bottles required are 1/5 time of the target that has been set the coming year. Pricing: Pricing is one of the most difficult tasks between the four Ps. Decision on pricing is the most important in marketing. Strategy marketing executive do not give pricing special authority. There is not pricing specialist in the same sense, as there is an advertising specialist or a distribution specialist. This is perhaps because price decision is not restricted to one particular department. They cut across all department of business from production to advertising and

distribution. It is always necessary to first look any product in the light of the following criteria before deciding on a price. 1. The potential demand for the product 2. The time it will take before the product begins to yield profits. 3. The elasticity of demand 4. The target groups 5. What promotional strategy can be employed and how much of the price should be included in the promotion. 6. What kind of distribution arrangement is necessary? 7. At what state of the product life cycle is the product Pricing decision interconnect marketing action with the financial objectives of the enterprise. Among the most important marketing variable influenced by pricing decision are: 1. Sales volume 2. Profit margin 3. Rate of return on investment 4. Trade margin 5. Advertisement and sales promotion

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6. Production image 7. New product development Pricing strategy determines the firms position in the market vis--vis its competitors. Marketing effectiveness of pricing policies and strategy should not suffer merely on account of cost and financial criteria. Coming to the pricing of soft drinks (bottled). It is not possible to get the correct information regarding the criteria used for price fixing on account of its secret nature. The retail price charged in the market for various years for flavor non-alcoholic. Year Price/300ml 5.00 6.00 6.00 7.00 7.00 8.00 2004 9.00 2005 2008 10.00 Merchandising: Merchandising is the different between a sales and missed opportunities. It is required to make the trademark visible and attractive at the point of sale (pos). This is because the consumers attention is divided between different brands. Therefore in-store merchandising is one of many strategic responses that FMCG companies must develop to stay ahead of their competitors. Principle of Merchandising: 1. Location: Make sure product and equipment are in the best selling areas of the business location. 2. Inventory Management: The amount of space in each outlet should reflect the current market share. 3. Package Position: Make sure products are easily accessible for the consumer to purchase. Heavier packages should be placed on the lower shelf. 4. Stock Rotation: when restocking shelves, bring older product to the front and pace fresh product at the back. 5. Brand order: The brands should be placed in a specific order so as to render different brands one after another so as to give consumer different choices at once. 6. Point of purchase: Material that helps consumers easily find products and illustrate current promotions and saving. 7. Pricing: All point of purchase material contains a price message and individual packages should convey what the item costs. 8. Housekeeping: The areas that present our products should be neat, clean and tidy at all times. 9. Facing all the labels: Turn cans of bottles so that all the labels are facing the same way. This enhances product presentation, which creates impulse purchases. 10. The corporate block set: The prescribed way to lay out the display so that company places all packages together in brand order.

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Fundamental of Merchandising: 1. Impulse purchase: Approximately 70% of Pepsi beverage purchases are impulse purchase. To encourage impulse purchasing, it is considered to create a situation in which consumer will want to purchase something they did not intend to purchase when they entered the store. 2. Trademark recognition: The Pepsi trademark is the most recognized in the world and this trademark is located on all the merchandising elements. 3. Expandable consumption: Expandable consumption means that the consumption or usage of products increase with the amount of product purchases. The more a consumer buys, that person will consume.

Branding: Brand image is defined as the set of association linked to the brand that consumers hold in memory. Positive brand image is associated with consumer loyalty consumer beliefs about positive and value, and a willingness to search for the brand. Advertising pays an important role in establishing a favorable brand image. In this chapter we would enumerate the image association for Pepsi and Sprite. Not to say the least, Pepsi always ridiculed the Coke strategies of brand promotions. Starting from Nothing official about it to Eat cricket sleep cricket. Both the companies are lashing out at each other through commercial like Coke using the phrase Chita bhi pita hai to ridicule the Mountain Dew ad. Sprite Bujhayee only pyassb aki sab bakwas of Sprite is also a famous one. Well these jibes against Pepsi were an instant hit and Sprite derived considerable mileage out of it through good re-call for the responders.

The brand image associated with Pepsi: In the last chapter we discussed about the users image association of the brand. Here we would do the same directly from the point of view of the brand owner. As mentioned earlier advertising plays an important role in establishing a favorable brand image. The various advertisements brought out be Pepsi like. 1.Celebrity endorsement 2. Contemporary music endorsement 3. Lifestyle endorsement 4. Endorsement by sports stars. A large Pepsi ads always projected on the entertainment factor. Connecting to basal youth movement and needs is what makes a brand meaningful to your people says the vice president international marketing of Pepsi, Mr. Ron Coughlin.

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The peppy youths of the Pepsi cops to associate themselves with these celebrities, music lifestyles (MTV) and the theyre favorite sports stars. Pepsi uses the celebrity advertisements as testimonials. That is the celebrity an actor or sportsman or a musician has personally used the product or service and is in a position to attest to its puerility, them he or she may give a testimonial carting its benefits. Thus the image projected by Pepsi is that attracting the generation X pleases refers characteristics of generation Xerox from the previous chapters user responses. The generation Xerox is not big spends at the same time. They find it extremely difficult to settle on their job and such. The pleasure of this segment of people is life like music and sincerity are their likes. Te project of the Pepsi ads is directly aimed at this segment of people. But then they have a strategy to bring the generation of these generations Xerox. That is the people at Pepsi call the generation next. The overtly technology obsessed generation. Their ad perpetuating the generation next companies has also hit the India success. In the case of Pepsi brand has been able to hold on the age between 14 to 32 on a trendy basis. Where as the rest upward link of the customer segment doesnt it on a utilitarian basis. The range art, which the people buy it as trendy or utilitarian, also changes. From the age of 14 as it go up wards the maybe to reduce these phenomena. MTV was reaped into advertise/associated the Pepsi brand. This is contrary to the phenomena Pepsi has experienced in other parts of world. That is because the product was in the mind of the body boomers quiet their youth. Whereas in India the situation was different. The mind set was of a fire when there where no Pepsi and Coke. This is evident by their opinion about the other brands, which is available in India. That is ThumsUp and Campa Cola. These brands still have a top-of-the mind recall in this generation.

Therefore though the fresh campaign like the along with MTV, would be to change this situation to Pepsi, favor. Apart from these advertisement the other marketing inputs that give the demand a push are aimed towards the retailers who provide the platform for the products. The schemes, cash discount, uts (under table), display scheme that keep the retailers happy because it is they who sell the product if they will keep it then it is bound to sell as in this business JO DIKHTA HAI WHO BIKTA HAI. Moreover visi coolers, racks, paints, glo sign boards etc also gives the sale a boost. Earlier year both Coke and Pepsi have made a pact that nobody will give any scheme on crates. Anyways both are silently giving uts(under table) to boost the sale. For example like 2 bottles of ut on each crate of soda 300 ml. through the help of the EDS developed by me it was found that Coke has more visicoolers than that of Pepsi but outlet wise Pepsi is far ahead than Coke.

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SWOT ANALYSIS
This is an auditing tool of an organization and its environments it is the first stage of planning and helps marketers to focus on new issues. SWOT stands for Strength, Weakness, and Opportunity Threats.

Strengths: Multinational leading brand PepsiCo has a good market reputation and strong distribution network. PepsiCo is having a multi brand strategy and looking for a great volume opportunity in India. It has more plant than Coke. High brand equity Weakness: PepsiCo has less no. of visicoolars. Improper allocation of schemes. It has not yet found perfect substitute for Limca. All retailers are not satisfied due to chilling equipment. Opportunity: A rapid growing market which is expanding @ 20% every year. It can give a big jerk to its major competitor coke if it can increase its number of fountain to a great amount. Major outlets should arrange some scheme for parties, marriage and festivals. Space for new product line in the market. Launching of new product is accepted by consumer due to brand image. Threats: Presently Coke is providing or doing better displaying way and display scheme than Pepsi. Coke are providing large no. of visicoolers than Pepsi. It has a continuous threats from Coke as well as various other local soft drinks.

STP ANALYSIS
STP is a very important tool of marketing .It refers to SEGMENTATION, TARGETING AND POSITONING.

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SEGMENTATION: Pepsi has segmented the market lower, higher and premium class. It is the Pepsi that is bought by all classes because price of the Pepsi is similar to the competitors coca cola. It has segmented the market so that there could not be problem in the distribution .During my training I feel that around 1Kms circled area is covered by one salesman.

TARGETING: Target marketing involves evaluating each markets segments and selecting one or more segments to enter. After defining the market segment, Pepsi enter one or more market of a given market. Pepsi has done target segment in which it has generated the greatest customer value profitably and sustains over time.

POSITIONING: Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. In Positioning, Pepsi first identifies possible competive advantages upon which to build the position .To gain competive advantage, Pepsi offers greater value to target consumers. It is done by offering more benefits to justify higher prices. Pepsi does effective positioning which begins with actually differentiating this marketing offer so that it gives consumers more value.

RATIONAL
There is a big competition between Pepsi and Coca-cola. The prices of the products are also same so its very difficult for people to select which one is better? This is also depended on the availability of the products to select. When customers are thirsty they will be obliged to take any of the available items. The problem of availability is based on the distribution channel. Which one has good distribution channel that can provide good service to the shoppers. To do so the Company must know all the location of the outlets so that they can know which way they should send the distributors by which it takes leaser time and distribute more. I am doing GIS (Geographical Information System) and market mapping which give the company important information and allocation of the all outlets of particular area. I take this project as a means to implement the theoretical knowledge in practice and know the difference involved in real life implementation and maintaining the brand image of the Pepsi. 24

"PepsiCo is on an upswing, Coca-Cola is headed in the opposite direction. For 2004, Pepsis' net income rose to $457 million, or $1.73 a share, from the previous year's $416 million, $1.50 a share (Pepsi Bottling Group 4Q profit increases). For 2005, Pepsi expects earnings of $1.78 to $1.87 per share. Coca-Cola has not yet released full year 2004 results. However, for the first nine months of the year, its net income declined to $514 million, or $1.09 a share, from the prior year's $545 million, or $1.19 a share (Coca-Cola Enterprises' profit falls). For the full year 2004, Coca-Cola expects earning of $1.21 to $1.25 a share and has recently cut long-term growth targets for operating income to a range of six percent to eight percent from ten percent. Shares of PepsiCo have outperformed those of Coca-Cola for two decades (Twitchell, 2004). In the past five years, Pepsi's stock has returned sixty-nine percent, while Coke investors have lost more than twenty percent of their money." This paper examines the PepsiCo company, a company that is popularly associated with its flagship product Pepsi Cola. The paper explains that, while Pepsi Cola is a sizable portion of PepsiCo's revenue stream, PepsiCo actually has significant revenue generated from a slew of other products and divisions such as PepsiCo Beverages North America, PepsiCo International, Frito-Lay and Quaker Foods North America. The paper also looks at how PepsiCo's Pepsi Cola has long been second in market share to Coca-Cola and how the competition between Pepsi and Coke has been the stuff of business school legend for many years. However, thanks to a series of strategic acquisitions and market entry moves internationally, PepsiCo as a company has finally overtaken Coke in overall market share and performance. It could be said that PepsiCo has lost the cola battle but won the overall war with its arch-rivalCoca-ColaCompany. " PepsiCo Inc. is best known for its soft drink Pepsi and Mountain dew and yet, over the years it has also created logo items, such as T-shirts, hats and duffel bags with the Pepsi globe design. These are part of its marketing strategy to promote the drinks in the minds of the people making the drink a part of the life of their life. But that sort of marketing has its limitations. These items can be taken to the beach but they are not a 'brand'. In today's lifestyle a brand name is what is needed to succeed. It is the brand name that grabs the attention of the consumer and retains their loyalty as price, quality etc. become associated with the name accordingly. So the logo accessories that were promoted by Pepsi may have been used but they did not create an awareness of Pepsi in any market other than that of soft drinks." Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. This briefing is prepared by an independent writer who 25

adds their own impartial comments and places the articles in context. There was a time when a feature article on Pepsico or Coca-Cola, or preferably them both, would stir the blood; they represented the cutting edge of business, particularly marketing, and their global reach was simply breathtaking. Name a country that you could hardly find on a map and, guess what, both cola giants were already on the ground and fighting hard for market share. Provides strategic insights and practical thinking that have influenced some of the world's leading organizations. The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format. The marketing position of Pepsi Blue. It answers the following questions: Why has Pepsi Blue been conceived? What new benefit(s) does Pepsi Blue provide to consumers around the world; to Pepsi regional bottlers? How well have the new identity and logo been tested for the global market? Why did they use Bahrain as the test market? Would another country have been a better choice? What objections might Pepsi's local, independent bottlers around the world have to the proposed global rollout of Pepsi Blue? What should Pepsi do to local, independent bottlers around the world who oppose the Pepsi Blue product

OBJECTIVE OF THE STUDY

The objectives of this survey is for fulfilling this objective I have to under go with the following aspects.

To find out the availability of Glow sign, Dealer board, display Racks and umbrella. To know about the utilization of the equipments like visi cooler and racks which are provided by the company.. To measure the effectiveness of marketing program offered by Pepsi & Coke. To find out the problems faced by the retailers related to Pepsi & Coke. Secondary objective of the study is to know about the customers behaviour about pepsi and coke.

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RESEARCH METHODOLOGY
Marketing research is the systematic and objective investigation analysis of information to the identification and solution of any problem in the field of marketing, very broadly, the function of marketing research includes description and explanation, prediction and evaluation of more narrowly the function of marketing research with in a company is to provide the information and analytical inputs necessary for effective working. The purpose of methodology section in the report making is to describe the research process that is followed while doing the main part. The research design plays a pivotal role in the quality and content of the data in making of any project report. The type of research design chosen is seen to have a bearing on all the aspects of report writing. The research design undertaken for the study was an exploratory one. The reasons for using an exploratory research method were to obtain qualitative data and also since the nature of study is as such that it required the exploration of various aspects within and outside the company. This method also gave the officials interviewed the utmost freedom in responding and was highly contributory in getting incisive information. In order to carry out a well researched analysis efforts were taken to collect enough information about the company. For this purpose various primary and secondary source were used. This would however include the research design, the sampling procedure, and the data collection method. This section is perhaps difficult to write as it would also involve some technical terms and may be much of the audience will not be able to understand the terminology used.

TYPES OF DATA AND DATA COLLECTION

PRIMARY DATA SECONDARY DATA PERSONAL VISITS Primary Data: Primary data is that kind of data which is collected by the investigator himself for
the purpose of the specific study. The data such collected is original in character. The advantage of

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this method of collection is the authentic. A set of question were put together in the form of questionnaire with 10 questions. The method of sampling was the random method as it was unbiased. The population size was 50 in the case of retailer and 100 in the case of consumer for questionnaire. Secondary Data: When an investigator uses the data that has been already collected by others is called secondary data. The secondary data could be collected from journals, reports and various publications. The advantages of the secondary data can be it is economical, both in terms of money and time spent. The researcher of the report also did the same and collected secondary data from various internet sites like google.com, altavista.com and many more. The researcher of the report also visited various libraries for collection of the introduction part. Personal Data: As a part of the analysis, it was necessary to visit the retailers of different areas As it would always help me knowing the nature of respondents in different areas

ANALYSIS AND INTERPRETATION

1. Which of the following display inputs are available with you? Display Racks 18 43 Glow Sign 63 57 Umbrella 16 8 Dealer Board 32 44 All 5 8

Coke Pepsi

Signage Penentration
70 60 50 40 30 20 10 0 Display Racks Glow Sign Umbrella Dealer Board All 18 16 8 5 8 43 32

63 57 44
Coke Pepsi

Interpretation:

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Above analysis shows that 18% display racks,63% glow sign, 16%umbrela,and 5%all are used by coke and in case of Pepsi 43% display racks,57%glow sign,8% umbrella,44%dealer board and 8% all are used .

2. .Has the outlet got the Glow sign?

(a) Coke b) Pepsi c) Both d) None

17 29 23 31

Interpretation: The above chart shows that 17%outlets got the glow sign of coke and 29% of Pepsi 23% for both coke and Pepsi. 31% for none.

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3. Please rank the following inputs that help you to increase the sales most? a) Vesicular 7.82 b) Icebox 4.59 c) Display Racks 5.4 d) Glow Sign 6.98 e) Any Other, Specify 5.08

Rank (1- 10)

9 8 7 6 5 4 3 2 1 0 Visi cooler Ice Box Display Racks Glow Sign Any Other

Series1

Interpretation: The study shows that 7.82% of vesicular. 4.59% of ice box. 5.4% of display racks 6.98% of glow sign 5.08% of others inputs help to increase the sales.

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4. Are you using the Visicooler purely for? (a) Coke (b) Pepsi (c) Both (d)others 20% 15% 20% 45%
Visicooler
50% 40% 30% 20% 10% 0% Coke Pepsi Both Others

Series1

Interpretation: 20% retailers are using vesicular purely for coke. 15% for Pepsi. 20% for both. And 45% for others like ice cream, juices, and milk.

5. What is the problem for keeping Visicooler impure? a) Milk 31 b) Chocolates 33

31

c) Butter e) Other

17 8

d) Juices

12

Interpretation: 31% retailers said that 31% milk, 33%choclates, 17% butter, 125 juices and 8% other things are responsible for keeping the vesicular impure

6. Does the salesman charges Vesicular? a) Coke 69 b) Pepsi 31

32

Salesman Charges

Pepsi 31%

Coke 69%

Coke

Pepsi

Interpretation: 69% of retailers having large stores said that they have been charged by coke and 31%are charged by Pepsi.

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7. Whose supply and sales after service impress you? a) Coke b) Pepsi 39 61

Interpretation: 39% of retailers are impressed by the supply and sales after services of coke and 61% of Pepsi.

8. Are you satisfied with the repair service of fridge? Completely satisfied 39 54 Some What Cant Say Agree 22 10 22 17 Some what Disagree 17 5 Completely Disagree 12 2

Coke Pepsi

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Repair Service
60 50 40 30 20 10 0 Completely Some what Satisfied Agree Can't Say Some what Completely Disagree Disagree Coke Pepsi

Interpretation: 39% are completely satisfied with coke and 54% are with Pepsi.22% are somewhat agree with services of coke and 22% with Pepsi. 10% cant say for coke and 17% for Pepsi. 17% are somewhat disagree with coke and 5% are with Pepsi 12% are completely dissatisfied with coke and 2% are completely dissatisfied with pepsi..

9. What is the reason for customer to come to your outlet? a) Eatery b) General Store c) Convenience d) Others 24 41 33 2

35

Interpretation: 24% customers comes to the outlet for eatery .41% for general store.33% for convenience.and 2% for others.

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CONCLUSION
From my project report the result, which I have found had been discussed and described thoroughly. The various segment of soft drinks market were the main facts to focus in this project report. Each segment has its own importance. Although Pepsi has all the flavors i.e. cola, orange, lemon, lime and fruit juice in the market, its market share is comparatively not satisfactory. Retailers scheme should be crystal clear, so that they could understand very easily and lucidly. These are the factor to stimulate the result in the sense of promoting soft drinks. Most of the bottles sold were chilled. The percentage of bottles sold without chilling was among the department stores. Because they mostly carry home delivery. The 10% sell of chilled bottles by eating joints was 100%. Most of the retailers said that near 100% sales of companys product had increased after the installation of chilling equipments. Half of the retailers had kept the chilling equipment at the entrance of the outlets while rest had placed it inside the shop. All the outlets had kept the 300 ml. bottles in chilling equipment, While very less had kept one liter and 1.5 liter pet bottle at the outlets. Mostly retailers had been provided on the basis of deputation and some were given just for advertisement. Nearly 5% retailers complaint that their chilling equipment is not working properly and they said that had informed the company many times but there was no repair done by company. Company should look to their complaint. Most of the chilling equipments used by outlets were impure only 33 were pure. Companys supervisor and sales man should be instructed to pure the chilling equipments. As per as my perception the rating of marketing inputs is as follows. Visicooler 7 Icebox 5 Display Racks 4 Glow Sign Board 8 Dealer Board 7 Others 5 This project report is intended as a concise and practical guide for writing correct and effective facts. I am sure that the readers shall find this project report improved a lot, convenient and highly useful.

LEARNING AND RECOMMENDATION

Formulate Policy for providing chilling equipment: Company should formulate a specific policy for providing chilling equipment. In the past company ha provided the chilling equipment to the retailers depending upon sales and to some retailers just for advertising. This policy of providing the chilling equipment was not right and some retailers whos sale was very good. They were not given the chilling equipment. Immediately repair the defected chilling equipment Company should repair the defected chilling equipment immediately, because these chilling equipment remains ideal and moreover they damage the image of company. If chilling equipment remains ideal the basic purpose for which company had invested that cans be achieved. Check the purity of chilling equipment Most of the retailers dont keep the chilling equipment pure that is some other companys product are kept in the chilling equipment since company has given the chilling equipments to the retailers for displaying its own product. So in the chilling equipment only company product should be kept. Encourage retailers to chilling equipment clean

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Most of the retailers do not consider the chilling equipments its own property and so they dont care much about companys chilling equipments. The most of the chilling equipments provided by company were no clean. So retailers should be encouraged to keep chilling equipment clean. Encourage retailers to keep chilling equipment at entrance About 50% of retailers had not kept their chilling equipment at the entrance. They had placed it inside the shop or inside the store. The chilling equipment should be kept at the entrance of the outlets so that they are easily visible and thus promote the company product. Placing of chilling equipment at entrance also attracts the consumers. Give better margin to the retailers Many retailers are complaining about the less margin so the company must see to it. Slum outlets needs painting The outlets of the slums needs immediate painting as it has been three years since the last painting has been done .

The Pepsi company should provide fast service regarding the complains of the retailers. The company should also check service of cooling system timely. The main problem of the cooling system in the market built is avoid by distributer and company. So company should be carefully entertain on this type of issue. The company should appoint an executive who remain or visit into the market regularly to look the display position of the display board which the company are providing to the retailer. Most of the retailers dont keep the chilling equipment pure that is some other companys product are kept in the chilling equipment since company has given the chilling equipment only for company products so it should be pure. Space warriors should visit the shops more frequently as most of the shop violates the display condition. Some outlets have problem that the salesman are not giving schemes to the retailer and timely arrival of the stock so the customer executive should also entertain on this type of issue also. Shortage of product is a problem which is generally faced by shopkeepers. Most of the feel it and secondly they feel that they are not getting timely delivery other problems are not so important for them. The company should give special attention to maintain all the flavors everyday. The company should appoint an executive who remain or visit into the market regularly to look the display position of the display board which the company are providing to the retailer. Some outlets have problem that the salesman are not giving schemes to the retailer and timely arrival of the stock so the customer executive should also entertain on this type of issue also.

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BIBLIOGRAPHY

www.academon.com/lib/essay/coke-pepsi.html www.emeraldinsight.com/10.1108/02580540810839269 www.pepsiindia.com www.google.com www.pepsico.com www.cokacola.com www.cokeindia.com Books Referred: Marketing Management by Philip Kotler Research Methodology by K.V.Rao, C.R.Kothari

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ANNEXURE

QUESTIONNAIRE FOR RETAILER 1. Which of the following display inputs are available with you? (Please tick appropriate) Display Racks Coke Pepsi Glowsign Umbrella Dealer Board All

2. .Has the outlet got the Glow sign? (a) Coke (b) Pepsi (c) Both (d) None

3. Please rank the following inputs that help you to increase the sales most? Inputs a) b) c) d) e) Visicooler Display Racks Umbrella Glow sign Dealer Board

4. Are you using the Visicooler purely for? (a) Coke

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(b) Pepsi (c) Both (d) Others_____________ 5. What is the problem for keeping Visicooler impure? Milk Butter Chocolate Juices Other, specify _________________ 6. Does the salesman charges Visicooler? (a) Yes (b) No Which brand_______________

7. Whose supply and sales after service impress you? (a) Coke (b) Pepsi 8. Are you satisfied with the repair service of fridge? Completely Satisfied Pepsi Coke Somewhat Agree Cant Say Somewhat Dissatisfied Completely Satisfied

9. What is the reason for customer to come to your outlet? (a) Eatery (c) Convenience (d) Other

(b) General Store

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42