0

A
PROJECT REPORT
ON

Enhancing and Improving the Channels of Distribution and Sales

Promotion of PepsiCo.

Submitted in partial fulfillment of the requirements for the

Degree of
Bachelor of Business Administration
Session (2013-2016)
Punjab Technical University (Jalandhar).

Supervised By:

Submitted by:

Mr.James Kanda

Imran Hassan Wagay

Astt.prof..

Class: BBA_6th

PIMT, Mandi Gobindgarh

(Punjab).

Univ. Roll No: 1336007

PUNJAB INSTITUTE OF MANAGEMENT AND TECHNOLOGY

Certificate by guide

This is to certify that the summer training project entitled Enhancing and
Improving the Channels of Distribution and Sales Promotion of PepsiCo.
for the award of the degree of Bachelor of Business Administration (BBA) from
Punjab Institute of Management and Technology (PIMT), Mandi Gobindgarh
(Approved by A.I.C.T.E New Delhi, affiliated to Punjab Technical
University, Jalandhar), is a record of project Report carried out by Imran
Hassan wagay, BBA 6th sem., Roll no. 1336007, under my supervision and
guidance, no part of this project has been submitted to any other
Degree/Diploma and this report may be taken for evaluation.

Mr.James Kanda,
(Faculty of Management),
PIMT, Mandi Gobindgarh.

Sign.

Declaration

I Imran Hassan Wagay hereby declare that the Project Report

Enhancing and Improving the Channels of Distribution and
Sales Promotion of PepsiCo. submitted in partial fulfillment of
the award of the degree of Bachelor of Business Administration to
Punjab Institute of Management and technology, Mandi
Gobindgarh,

affiliated

to

Punjab

Technical

university

(Jalandhar) Approved by A.I.C.T.E. (New Delhi) is one of my

original works and not submitted to any other Degree/Diploma,
fellowship or other similar title.

Name: Imran Hassan

Wagay
Class: BBA 6th Sem.
Univ. Roll No: 1336007

Content
Preface..4
Acknowledgement...5
Executive Summary....6
Soft Drink market in India....7-10
Companys Profile and its Contribution towards Society..10-17
Channels of Distribution17-21
Products of PepsiCo....21-22
Soft Drink Production22-23
Sales Promotion...23-25
Celebrities associated with PepsiCo..26-27
Competition and SWOT Analysis.................28-34
History and Profile of SMV Beverages, Jamshedpur.34-35
Structure of SMV Beverages, Jamshedpur..36
Officials of Beverages, Jamshedpur..37
Production Process.....38-39
Objective of Study...40
Methodology used in Research..40
Data Analysis and Interpretation..41-51

Findings52
Limitation52
Recommendation53
Conclusion...54
Bibliography54
Annexes....55-57

PREFACE

It is very essential and a matter of proud that to be a part of an

institute which is reputed and equipped with well educated faculty
members, who shape our life and make it convenient to survive in
the world.
In an aspect, it is important to get theoretical knowledge about the
market and the competition so that to know the different section and
strategy which are adopted by the businessmen as well as
companies.
But in other aspect, we know that when we are in the market or can
say in that practical environment then the situation is totally
different. Managerial constraint, pressure from upper level and
competition make it all very complex and difficult to face therefore
it is very important to get practical knowledge about all these things.
This project report is basically dedicated to all those aspects which
we face and what we learn from it also information related to
respective company and the outlets and staffs associated to the
respective company.

ACKNOWLEDGEMENT

Before explaining and elaborating my experience about the project

report, I would like to express my feeling for those people who play
very pivotal role in completing my project report and without them
which could be a work with lots of complexities. I am very thankful
to them because they do not support me only in paving my way
which help me to know the market condition but also in making a
good relationship with the environment and the people involved in
the activities.
I would like to show my gratitude towards Dr.Manisha Gupta
(Director of PIMT), Mr. Gurpreet Singh (Training and Placement
officer) who offered me an opportunity to be a part of PepsiCo India
(Hajipur) and to all my faculty members of PIMT.
I am also very thankful to entire team, (from Director to pre sales
representative) of PepsiCo India (Hajipur), who offered this
opportunity to us to be a part of this company for some months and
to know the companys profile and all its functions. They did not
provide me only their supports but also made all the efforts to make
it convenient and easier for me.
I am also obliged to all the retailers and Medias of communication
of recommended area, for their support and providing me adequate
information related to my project.

EXECUTIVE SUMMARY
This project is related to the PepsiCo Company and its franchisee
LUMBINI BEVERAGES (Hajipur), which consists of the topics
such as market of soft drinks in India, companys profile and
contribution to the society, and the channels which are used in the
distribution of products of the company.
It also consists of the information about the companys products and
soft drink production, sales promotion and the celebrities associated
with, competitiveness, and also SWOT analysis of the company.
Besides the companys profile and operations we can also find in
this project the profile and operations of its franchisee Lumbini
Beverages, which is situated at Industrial Area, Hajipur (jammu).
Also we can find the views of its retail outlets of certain areas
through an extensive survey, effectiveness and loopholes between
retailers and distributors.
There is also included the objective of the study, methodology used
in research, findings, recommendation and the bibliography.
This project will not provide only an insight of the company and its
operation but also it will provide some extra information of market,
which will be beneficial for the enhancement and improvement of
its distribution channel and promotion of sales.

Soft Drink market in India

A soft drink (also called soda, pop, coke,http://en.wikipedia.org/wiki/Soft_drink cite_note-0 soda pop, fizzy drink, tonic, or carbonated beverage) is a nonalcoholic beverage that typically contains carbonated water, a sweetener, and
a flavoring agent. The sweetener may be sugar, high-fructose corn syrup, or
a sugar substitute (in the case of diet drinks). A soft drink may also
contain caffeine or fruit juice.
Products such as energy drinks, Kool-Aid, and pure juice are not considered
to be soft drinks. Other beverages not considered to be soft drinks are hot
chocolate, hot tea, coffee, milk, and milkshakes.
Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic
beverages). Small amounts of alcohol may be present in a soft drink, but
the alcohol content must be less than 0.5% of the total volume if the drink is
to be considered non-alcoholic.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for
home consumption. Fountains also dispense them in disposable containers.
Non-alcoholic soft drink beverage market can be divided into fruit drinks
and soft drinks. Soft drinks can be further divided into carbonated and noncarbonated drinks. Cola, lemon and oranges are carbonated drinks while
mango
drinks
come
under
non
carbonated
category.
The market can also be segmented on the basis of types of products into cola
products and non-cola products. Cola products account for nearly 61-62% of
the total soft drinks market. The brands that fall in this category are Pepsi,
Coca- Cola, Thumps Up, diet coke, Diet Pepsi etc. Non-cola segment which
constitutes 36% can be divided into 4 categories based on the types of
flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.
Soft drinks are become part and parcel of the Indian lifestyle. Be it children,
the college kid or the middle aged, Indian soft drinks are enjoyed by one and
all in the country. Especially after the influx of a number of fast food joints

in India soft drinks have gained more popularity. Food like pizzas, burgers
and French fries go hand in hand with soft drinks.
Gone are the days when soft drinks were enjoyed the combat sunny day.
Today soft drinks are enjoyed with almost every meal that one has outside
his/her home. Despite several issues that crept up regarding the ingredients
used behind the manufacturing of soft drinks the market remained stable.
The soft drinks industry in India is categorized on the basis of carbonated
and non carbonated drinks. The carbonated drinks include flavors like cola,
lemon, and orange and the non carbonated drinks segment includes mostly
mango flavors. The non carbonated segment includes fruit juices and
squashes. The Top Soft Drink Brands in India are Coca-cola, Pepsi, and
Thumps Up. The other popular soft drinks brands in India include Fanta,
Mirinda, 7Up, Sprite, Limca, etc. In order to cater to all the segments of the
society these top soft drink brands are available in numerous sizes.
Starting from the age old 300 ml glass bottles to the 200 ml ones to the
recently launched 500 ml and 1 lt. plastic bottles soft drinks are available in
almost every size desired by the consumers. The carbonated drinks account
for almost 80% of the total sales of the soft drinks market in India.
Soft drinks do not only rule the urban markets they have successfully
managed to penetrate the rural areas as well. Rural areas account for almost
75% sales of pet bottles whereas the sales of 300 ml and 200 ml bottles are
higher in the rural areas.
Based on consumption patterns the soft drink market in India is classified
into two segments. The first is on premise which means the place where the
soft drink was bought and consumed. This includes places like railway
stations, stand alone shops, restaurants and cinemas. The other one being InHouse consumption which means soft drinks purchased and consumed at
home. However in India the former beats the latter hollow. Outdoor
consumption accounts for almost 80% of the total sales of soft drinks and
indoor consumption accounts for the remaining 20% of the sales of the soft
drinks market.

10

However the soft drinks market in India is still in its nascent stage as
compared to countries like the USA. According to a report published in 2000
the per capita consumption of soft drinks in India was 5 bottles annually as
compared to USA whose per capita consumption per annum stood at 800
bottles. Delhi happens to be the highest soft drink consuming region in India.
THE high-octane advertising blitz notwithstanding, per capita consumption
of soft drinks in India continues to be low, even when compared to other
countries in the region, according to a report on Emerging Market Trends
2000-01, by the Centre for Industrial and Economic Research (CIER).
India consumes about five bottles per person per year and this does not stand
favorably compared to consumption in neighboring countries such as the
Philippines, where consumption per person is about 150 bottles a year.
Consumption in the UK stands at 120 bottles per person.
According to the report, a supplement to CIER's publication on Market
Forecasts and Indicators 1997-2007, Pakistan at 30, Thailand at 38 and Sri
Lanka at 23 bottles consumed per person per annum, also fare better.
Dr S.R. Mohnot, Executive Chairman, CIER, told Business Line that despite
all the apparent activity in the segment, the soft drink market has not grown
as much as it could have. ``In the last financial year, the segment has been
growing at eight per cent , which is a good growth rate. However, going by
the country's GDP, the soft drink segment had a much greater potential for
growth. It should have grown at anywhere between 16 and 20 percent,'' he
said.
One of the reasons inhibiting growth could be the high excise duty on soft
drinks in India, which again was higher than in other regions, the report said.
``Both the soft drink majors and retailers hiked their prices to offset the levy,
even as the manufacturers simultaneously undertook promotional schemes
with whopping prizes,'' he pointed out.

11

According to an NCAER report, 91 per cent soft drink sales are made to the
lower, middle and upper middle-class, and yet the segment was taxed more
than other related mass-consumed products, he said. A redresser at this level
could help the segment to realize its complete potential, according to the
researcher.

COMPANYS PROFILE and CONTRIBUTION TOWARDS

SOCIETY.

Statistics:
Public Company
Incorporated: 1965
Employees: 1,18,000
Stock Exchange: New York, Chicago, Swiss, Amsterdam, Tokyo
Ticker Symbol: PEP
NAIC: 311411 Frozen Fruit, Juice, and Vegetable Manufacturing; 311919 Other Snack Food
Manufacturing; 311821Cookie and Cracker Manufacturing; 311930 Flavoring Syrup and
Concentrate Manufacturing; 312111 Soft Drink Manufacturing; 312112 Bottled Water
Manufacturing.

PepsiCo, Incorporated is a Fortune 500, American multinational corporation

headquartered in Purchase, New York, with interests in manufacturing and
marketing a wide variety of carbonated and non-carbonated beverages, as
well as salty, sweet and cereal-based snacks, and other foods. Besides the
Pepsi brands, the company owns the brands Quaker Oats, Gatorade, FritoLay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7 Up
(outside the USA).

12

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since
2006, and the company's beverage distribution and bottling is undertaken
primarily by associated companies such as The Pepsi Bottling Group and
Pepsi Americas. PepsiCo is a SIC 2080 (beverage) company.
Headquartered in Purchase, New York, with Research and Development
Headquarters in Valhalla, The Pepsi Cola Company began in 1898 by a NC
Pharmacist and Industrialist Caleb Bradham, but it only became known as
PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned
KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off
into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased
Tropicana in 1998, and Quaker Oats in 2001. In December 2005, PepsiCo
surpassed Coca-Cola Company in market value for the first time in 112 years
since both companies began to compete.
Key Dates:
1898: Pharmacist Caleb D. Bradham begins selling a cola beverage called Pepsi-Cola.
1905: Bradham begins establishing a network of bottling franchises.
1923: Bradhams company goes bankrupt.
1928: Roy C. Megargel reorganizes the firm as the National Pepsi-Cola Company.
1931: Company again goes bankrupt and is resurrected by the president of Loft Inc.,
Charles G. Guth.
1933: The size of Pepsi bottles is doubled, increasing sales dramatically.
1936: Pepsi-Cola Company becomes a subsidiary of Loft.
1939: First national radio advertising of the Pepsi brand.
1941: Loft and Pepsi-Cola merge, the new firm using the name Pepsi-Cola Company.
1964: Diet Pepsi debuts; Mountain Dew is acquired from Tip Corporation.
1965: Pepsi-Cola merges with Frito-Lay to form PepsiCo, Inc., with the two
predecessors becoming divisions.

13

1967: Frito-Lay introduces Doritos tortilla chips to the national U.S. market.
1977: PepsiCo acquires Taco Bell.
1978: PepsiCo acquires Pizza Hut.
1981: Frito-Lay introduces Tostitos tortilla chips.
1986: The Kentucky Fried Chicken (KFC) chain is acquired.
1997: Taco Bell, Pizza Hut, and KFC are spun off into a new company called Tricon
Global Restaurants.
1998: PepsiCo acquires Tropicana Products for $3.3 billion.
1999: Pepsi Bottling Group is spun off to the public, with PepsiCo retaining a 35%
stake.
2000: PepsiCo reaches an agreement to acquire the Quaker Oats Company for $13.4
billion.

PepsiCo in India
http://pepsicoindia.co.in/Com http://pepsicoindia.co.in/Com http://pepsicoindia.co.in/Com
pany/ourcorporateprofile.asp pany/ourcorporateprofile.asp pany/ourcorporateprofile.asp
x

Establishment

Investment

Employment

PepsiCo
established
it's PepsiCo
India and its PepsiCo India
provides
business operations in India partners have invested direct
and
indirect
in 1989 and has grown to more than USD1 billion employment to 150,000
become one of the countrys since the company was people including suppliers
leading food and beverage established in the country. and distributors.
companies. One of the
largest
multinational
investors in the country,
PepsiCo has established a
business which aims to serve

14
the long term dynamic needs
of consumers in India.

PepsiCo entered India in 1989 and in a short period of 20 years has grown
into the largest and one of the fastest growing food & beverage business in
the country. PepsiCo Indias growth has been guided by PepsiCos global
vision of Performance with Purpose. This means that while businesses
maximize shareholder value, they have a responsibility to all the
stakeholders including the communities in which they operate, the
consumers they serve and the environment whose resources they use.
Large investor: One of the largest US multinational investors in the country
with an investment of over $1 billion, PepsiCo India provides direct and
indirect employment to over 1,50,000 people across the country. Its
beverage and snack food business is supported by 36 beverage bottling
plants, (13 company and 23 franchisee owned) and three food plants.
PepsiCo Indias diverse portfolio includes iconic brands like Pepsi, Lays,
Kurkure, Tropicana 100%, Gatorade, Quaker and young but immensely
popular and fast growing brands such as Nimbooz and Aliva.
No.1 food & beverage business in India: PepsiCo India has not only grown
to become the countrys largest food and beverage business but has also
become a powerful and consistent driver of PepsiCos global growth. Over
the last two years, India's beverage and foods businesses have been the
largest volume growth contributors to PepsiCo across the globe. PepsiCo
India has been frequently recognized for its industry-leading human resource
practices, indovations, corporate values, and talent, and was one of the five
top marketers of the country in 2009.
A third of PepsiCo India's portfolio today comprises healthier
products: PepsiCos portfolio reflects its commitment to nourish consumers
with a diverse range of fun and healthy products, making the healthful
choice an easier choice. As PepsiCo grows, the portfolio transformation will
continue with a systematic plan to reduce added sugar, sodium and saturated

15

fats in its products. Today, the portfolio includes several healthier treats like
Quaker Oats, Tropicana juices, rehydrator Gatorade, Pepsi Max and Cheetos
Whoosh. PepsiCo was the first in India to introduce the use of healthier oils
for its snacks - Lays Potato chips, Kurkure and Cheetos.
Model partnership with over 22,000 farmers: PepsiCo has pioneered and
established a model of partnership with farmers and now works with over
22,000 happy farmers across ten states. More than 45% of these are small
and marginal farmers with a land holding of one acre or less. PepsiCo Indias
farming program has improved their livelihoods and incomes by providing
assured buy back of their produce at pre-agreed prices thus insulating them
from open market price fluctuations. PepsiCo provides 360 degree support to
the farmer through quality seeds, extension services, disease control
packages, and bank loans, weather insurance, and latest technological
practices.

Contribution towards Society:

PepsiCo Foundation
PepsiCo Foundation activities in India
PepsiCo's philanthropic anchor, PepsiCo Foundation is committed to developing
sustainable partnerships and programmes that provide opportunities for improved health
and inclusion and a better environment.

The total funding for India has been $11mn (200810)

The programmes have benefited more than 300,000 people in nine States of India
The foundation supports projects in the following focus areas:

Health: Food security; Improved and optimum nutrition; Energy balance

Health Alliance
Project: This research project focuses on reducing chronic diseases by promoting
healthy diets and physical activity and controlling tobacco use. The project is being
implemented through integrated interventions to drive policy and environmental
changes.

16

Impact: Lower rates of obesity and chronic diseases (cardiovascular problems and
diabetes).
Reach: 12,000 people in Kerala.
India grant: $1.13mn during 200710.

Save the Children

Project: The project catalyzes community-based interventions to deliver integrated
health and nutrition solutions to children under 5, young mothers and pregnant and
lactating women. Save the Children works with community health educators to provide
families important information about health, nutrition, water, sanitation and hygiene.
Reach: 100,000 people in Rajasthan. (The project reaches 50,000 beneficiaries
including children under 5, young mothers and pregnant and lactating women through
health and nutrition interventions. It reaches another 50,000 people through water and
sanitation initiatives.
India grant: $4.4mn during 200911.

Environment: Water security; Sustainable agriculture; Adaptive

approaches to our changing climate
Earth Institute at Columbia University
Project: The project tests methods that deliver 'more crop per drop'. This approach
focuses on water security through water harvesting, recharging, watershed management
and innovative irrigation practices. It is envisaged that the project will empower private
and public communities with practical new methods to use water more efficiently both
now and in the future. The project is developing research, tools, and strategies to
improve agricultural income and water use through policy reform and private sector
contributions to the agricultural value chain in terms of market development,
technology transfer and risk management.
Reach: 500 farmers across Punjab and Gujarat.
India grant: $1.15mn during 200810.

Safe Water Network

Project: This project focuses on providing affordable potable water at the community
level by harvesting rainwater, installing small water village kiosk purification systems
and building cisterns and community tanks.
Reach: 55,000 people across Rajasthan and Andhra Pradesh.
India grant: $1.1mn during 2008

Water.org

17

Project: The project acts as a catalyst to introduce microfinance to the water and
sanitation sector and provides household water connections and toilets.
Reach: 150,000 people in Tamil Nadu, Karnataka, Andhra Pradesh, Orissa and
Maharashtra. Water.org is one of the Foundation's largest partnerships in terms of reach.
India grant: $3.64mm during 200810.

Global leader in water conservation:

In 2009, PepsiCo India achieved a significant milestone, by becoming the first
business in the PepsiCo system to achieve Positive Water Balance (PWB). This
means that it replenishes more water than it consumes in its manufacturing operations.
This has been validated by Deloitte Consulting. PepsiCo is leading a pioneering
initiative to replace transplanting of paddy with direct seeding technology which has
helped reduce water consumption in paddy cultivation by over 30% and has also cut
down GHG emissions by 75%. In 2010, PepsiCo India saved 10.1 billion litres of water
through various initiatives. For water related environment initiatives, PepsiCo India has
received numerous awards such as CII National award for water management, Water
Digest award for water practices and Golden Peacock award for water conservation
among others.
Care for the environment: Following its success in water conservation, the company
is now focused on reducing its carbon footprint. Nearly 30% of its energy is today
generated from renewable sources such as rice husk boilers and wind turbines.
Initiatives such as agriculture waste boilers in our plants, installation of wind turbines,
reduction of use of chemicals, reduction in weight of packaging and film used in
product packaging, reduction in weight of metal crowns/polypropylene caps for plastic
bottles, conversion of potato waste into bio gas help reduce load on the environment.
PepsiCo India also partners NGOs and local administrations in three states of India to
recycle household solid waste in an endeavor to keep cities clean. Its award-winning
"waste to wealth" recycling program reaches 450,000 families.
Exemplary employment practices: PepsiCo India believes in providing employment
and growth opportunities to local talent. Its College of Leadership, ensures early
identification of talent, and employees focused development through critical
experiences. PepsiCo strongly believes in Winning with Diversity and Inclusion.
PepsiCo has been offering employment to women employees at the same employment
terms and equal growth opportunities as men. Today women comprise more than 25%
of the companys leadership team in India. PepsiCo India currently employs over 100

18

differently-abled people and has won the prestigious Hellen Keller award from the
National Centre for Promotion of Employment for Disabled People (NCPEDP).

Channels of Distribution
A channel of distribution or trade channel is defined as the path or route along which
goods move from producers or manufacturers to ultimate consumers or industrial users.
In other words, it is a distribution network through which producer puts his products in
the market and passes it to the actual users. This channel consists of producers,
consumers or users and the various middlemen like wholesalers, selling agents and
retailers (dealers) who intervene between the producers and consumers. Therefore, the
channel serves to bridge the gap between the point of production and the point of
consumption thereby creating time, place and possession utilities.
A channel of distribution consists of three types of flows: Downward flow of goods from producers to consumers
Upward flow of cash payments for goods from consumers to producers
Flow of marketing information in both downward and upward direction i.e. Flow
of information on new products, new uses of existing products, etc. from
producers to consumers. And flow of information in the form of feedback on the
wants, suggestions, complaints, etc from consumers/users to producers.
An entrepreneur has a number of alternative channels available to him for distributing
his products. These channels vary in the number and types of middlemen involved.
Some channels are short and directly link producers with customers. Whereas other
channels are long and indirectly link the two through one or more middlemen.
These channels of distribution are broadly divided into four types:Producers

Agents

19

Retailers

Wholesalers

Consumers

Producer-Customer- This is the simplest and shortest channel in which no

middlemen is involved and producers directly sell their products to the
consumers. It is fast and economical channel of distribution. Under it, the
producer or entrepreneur performs all the marketing activities himself and has
full control over distribution. A producer may sell directly to consumers through
door-to-door salesmen, direct mail or through his own retail stores. Big firms
adopt this channel to cut distribution costs and to sell industrial products of high
value. Small producers and producers of perishable commodities also sell directly
to local consumers.

Producer-Retailer-Customer:- This channel of distribution involves only one

middlemen called 'retailer'. Under it, the producer sells his product to big retailers
(or retailers who buy goods in large quantities) who in turn sell to the ultimate
consumers. This channel relieves the manufacturer from burden of selling the
goods himself and at the same time gives him control over the process of
distribution. This is often suited for distribution of consumer durables and
products of high value.

Producer-Wholesaler-Retailer-Customer:- This is the most common and

traditional channel of distribution. Under it, two middlemen i.e. wholesalers and
retailers are involved. Here, the producer sells his product to wholesalers, who in
turn sell it to retailers. And retailers finally sell the product to the ultimate
consumers. This channel is suitable for the producers having limited finance,
narrow product line and who needed expert services and promotional support of
wholesalers. This is mostly used for the products with widely scattered market.

20

Producer-Agent-Wholesaler-Retailer-Customer:- This is the longest channel

of distribution in which three middlemen are involved. This is used when the
producer wants to be fully relieved of the problem of distribution and thus hands
over his entire output to the selling agents. The agents distribute the product
among a few wholesalers. Each wholesaler distribute the product among a
number of retailers who finally sell it to the ultimate consumers. This channel is
suitable for wider distribution of various industrial products.
An entrepreneur has to choose a suitable channel of distribution for his product such
that the channel chosen is flexible, effective and consistent with the declared marketing
policies and programmes of the firm. While selecting a distribution channel, the
entrepreneur should compare the costs, sales volume and profits expected from
alternative channels of distribution and take into account the following factors: Product Consideration:- The type and the nature of products manufactured is
one of the important elements in choosing the distribution channel. The major
product related factors are: Products of low unit value and of common use are generally sold through
middlemen. Whereas, expensive consumer goods and industrial products
are sold directly by the producer himself.
Perishable products; products subjected to frequent changes in fashion or
style as well as heavy and bulky products follow relatively shorter routes
and are generally distributed directly to minimize costs.
Industrial products requiring demonstration, installation and aftersale
service are often sold directly to the consumers. While the consumer
products of technical nature are generally sold through retailers.
An entrepreneur producing a wide range of products may find it
economical to set up his own retail outlets and sell directly to the
consumers. On the other hand, firms producing a narrow range of products
may their products distribute through wholesalers and retailers.
A new product needs greater promotional efforts in the initial stages and
hence few middlemen may be required.

21

Market Consideration:- Another important factor influencing the choice of

distribution channel is the nature of the target market. Some of the important
features in this respect are: If the market for the product is meant for industrial users, the channel of
distribution will not need any middlemen because they buy the product in
large quantities. short one and may as they buy in a large quantity. While in
the case of the goods meant for domestic consumers, middlemen may have
to be involved.
If the number of prospective customers is small or the market for the
product is geographically located in a limited area, direct selling is more
suitable. While in case of a large number of potential customers, use of
middlemen becomes necessary.
If the customers place order for the product in big lots, direct selling is
preferred. But, if the product is sold in small quantities, middlemen are
used to distribute such products.

Other Considerations:- There are several other factors that an entrepreneur must
take into account while choosing a distribution channel. Some of these are as
follows: A new business firm may need to involve one or more middlemen in order
to promote its product, while a well established firm with a good market
standing may sell its product directly to the consumers.
A small firm which cannot invest in setting up its own distribution network
has to depend on middlemen for selling its product. On the other hand, a
large firm can establish its own retail outlets.
The distribution cost of each channel is also an important factor because it
affects the price of the final product. Generally, a less expensive channel is
preferred. But sometimes, a channel which is more convenient to the
customers is preferred even if it is more expensive.

22

If the demand for the product is high, more number of channels may be
used to profitably distribute the product to maximum number of customers.
But, if the demand is low only a few channels would be sufficient.
The nature and the type of the middlemen required by the firm and its
availability also affect the choice of the distribution channel. A company
prefers a middleman who can maximize the volume of sales of their
product and also offers other services like storage, promotion as well as
after sale services. When the desired types of middlemen are not available,
the manufacturers will have to establish their own distribution network.
All these factors or considerations affecting the choice of a distribution channel are
inter-related and interdependent. Hence, an entrepreneur must choose the most efficient
and cost effective channel of distribution by taking into account all these factors as a
whole in the light of the prevailing economic conditions. Such a decision is very
important for a business to sustain long term profitability.

Products of PepsiCo

Since PepsiCo is a leading company of India, it has various brands (beverages and
snacks) which are available in all over the world and also have good marketing of them.
PepsiCo entered India in 1989 and has grown to become the countrys largest selling
food and Beverage Company. One of the largest multinational investors in the country,

23

PepsiCo has established a business which aims to serve the long term dynamic needs of
consumers in India.
PepsiCo nourishes consumers with a range of products from treats to healthy eats that
deliver joy as well as nutrition and always, good taste. PepsiCo Indias expansive
portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain
Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional
beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana
100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and
Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up. Local brands
Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of
brands.
PepsiCos foods company, Frito-Lay, is the leader in the branded salty snack market and
all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato
Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure
and Lehar brands and the recently launched Aliva savoury crackers. The companys
high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance
the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure,
Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated
fats and all of its products contain voluntary nutritional labeling on their packets.
The group has built an expansive beverage and foods business. To support its
operations, PepsiCo has 36 bottling plants in India, of which 13 are company owned
and 23 are franchisee owned. In addition to this, PepsiCos Frito Lay foods division has
3 state-of-the-art plants. PepsiCos business is based on its sustainability vision of
making tomorrow better than today. PepsiCos commitment to living by this vision
every day is visible in its contribution to the country, consumers and farmers.

Soft Drink production

Soft drinks are made by mixing dry ingredients and/or fresh ingredients (e.g. lemons,
oranges, etc.) with water. Production of soft drinks can be done at factories, or at home.
Soft drinks can be made at home by mixing either syrup or dry ingredients with
carbonated water. Carbonated water is made using a home carbonation system or by

24

dropping dry ice into water. Syrups are commercially sold by companies such as SodaClub.
Ingredient quality
Of most importance is that the ingredient meets the agreed specification on all major
parameters. This is not only the functional parameter, i.e. the level of the major
constituent, but the level of impurities, the microbiological status and physical
parameters such as color, particle size, etc.
Potential alcohol content
A report in October 2006 demonstrated that some soft drinks contain measurable
amounts of alcohol. In some older preparations, this resulted from natural fermentation
used to build the carbonation. In the United States, soft drinks (as well as other
beverages such as non-alcoholic beer) are allowed by law to contain up to 0.5% alcohol
by volume. Modern drinks introduce carbon dioxide for carbonation, but there is some
speculation that alcohol might result from fermentation of sugars in an unsterile
environment. A small amount of alcohol is introduced in some soft drinks where alcohol
is used in the preparation of the flavoring extracts.

Sales Promotion
Sales promotion is one of the four aspects of promotional mix. (The other three parts
of the promotional mix are advertising, personal selling, and publicity/public relations.)
Media and non-media marketing communication are employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve
product availability. Examples include contests, coupons, freebies, loss leaders, point of
purchase displays, premiums, prizes, product samples, and rebates
Sales promotions can be directed at either the customer, sales staff,
or distribution channel members (such as retailers). Sales promotions targeted at the
consumer are called consumer sales promotions. Sales promotions targeted at retailers
and wholesale are called trade sales promotions. Some sale promotions, particularly
ones with unusual methods, are considered gimmicks by many.

25

Sales promotion includes several communications activities that attempt to provide

added value or incentives to consumers, wholesalers, retailers, or other organizational
customers to stimulate immediate sales. These efforts can attempt to stimulate product
interest, trial, or purchase. Examples of devices used in sales promotion include
coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and
sweepstakes.
Consumer sales promotion techniques

Price deal: A temporary reduction in the price, such as happy hour

Loyal Reward Program: Consumers collect points, miles, or credits for purchases
and redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage.

Cents-off deal: Offers a brand at a lower price. Price reduction may be a

percentage marked on the package.

Price-pack deal: The packaging offers a consumer a certain percentage more of

the product for the same price (for example, 25 percent extra).

Coupons: coupons have become a standard mechanism for sales promotions.

Loss leader: the price of a popular product is temporarily reduced in order to

stimulate other profitable sales

Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper
for delivery.

On-shelf couponing: Coupons are present at the shelf where the product is
available.

Checkout dispensers: On checkout the customer is given a coupon based on

products purchased.

On-line couponing: Coupons are available online. Consumers print them out and
take them to the store.

26

Mobile couponing: Coupons are available on a mobile phone. Consumers show

the offer on a mobile phone to a salesperson for redemption.

Online interactive promotion game: Consumers play an interactive game

associated with the promoted product. See an example of the Interactive Internet
Ad for tomato ketchup.

Rebates: Consumers are offered money back if the receipt and barcode are mailed
to the producer.

Contests/sweepstakes/games: The consumer is automatically entered into the

event by purchasing the product.
Point-of-sale displays:-

Aisle interrupter: A sign that juts into the aisle from the shelf.

Dangler: A sign that sways when a consumer walks by it.

Dump bin: A been full of products dumped inside.

Glorifier: A small stage that elevates a product above other products.

Wobbler: A sign that jiggles.

Lipstick Board: A board on which messages are written in crayon.

Necker: A coupon placed on the 'neck' of a bottle.

YES unit: "your extra salesperson" is a pull-out fact sheet.

Electroluminescent: Solar-powered, animated light in motion.

Kids eat free specials: Offers a discount on the total dining bill by offering 1 free
kids meal with each regular meal purchased.

27

Trade sales promotion techniques

Trade allowances: short term incentive offered to induce a retailer to stock up on

a product.

Dealer loader: An incentive given to induce a retailer to purchase and display a

product.

Trade contest: A contest to reward retailers that sell the most products.
Point-of-purchase displays: Used to create the urge of "impulse" buying and
selling your product on the spot.
Training programs: dealer employees are trained in selling the product.
Push money: also known as "spliffs". An extra commission paid to retail
employees to push products.

Trade discounts (also called functional discounts): These are payments to distribution
channel members for performing some function.
Political issues
Sales promotions have traditionally been heavily regulated in many advanced industrial
nations, with the notable exception of the United States. For example, the United
Kingdom formerly operated under a resale price maintenance regime in which
manufacturers could legally dictate the minimum resale price for virtually all goods;
this practice was abolished in 1964.
Most European countries also have controls on the scheduling and permissible types of
sales promotions, as they are regarded in those countries as bordering upon unfair
business practices. Germany is notorious for having the most strict regulations. Famous
examples include the car wash that was barred from giving free car washes to regular
customers and a baker who could not give a free cloth bag to customers who bought
more than 10 rolls.

28

Celebrities associated with PepsiCo

PepsiCos products are worldwide consuming brands which are supported by many
super stars. They play a very vital role to promote these brands and add values to them.
There are many super stars (of Bollywood or Hollywood, players, rock stars, etc.) that
are associated with PepsiCos brands.
Some of them are Salman Khan, Shah Rukh Khan, Ranveer Kapoor, Shreeshant, Dipika
Padukon, Michel Jackson, David Bekham.

29

30

Competition and SWOT Analysis of PepsiCo

Coca-Cola and Pepsi are the two most popular and widely recognized beverage brands
in the world. Within their lineup of beverages, Pepsi-Cola and Coca-Cola Classic are
the predominant carbonated cola beverages.
Coca-Cola is the original cola, while there isn't a huge difference in taste; Pepsi
mirrored their cola after Coke's, being just different enough in taste to not actually be
the same drink. Coca Cola is a much sweeter beverage while Pepsi is recorded to have a
more full flavored taste.
If you are comparing the original COCA COLA and the original Pepsi Cola, Coca-Cola
has 1 gram less carbohydrate than Pepsi.
Both drinks are no longer seen as a beverage but mainly as a brand. Both companies
commit heavily to sponsoring outdoor music festivals and even charitable projects in
third world countries. Pepsi also is an official sponsor of the FIFA World Cup. The
Coca-Cola IFA also sponsors the FIFA.
Many of the brands are available from the three largest soft drink producers. The CocaCola Company, PepsiCo and the Dr Pepper Snapple Group, are intended as direct,
equivalent competitors.
The following chart lists these competitors by type or flavor of drink.

31

Flavor/Type

PepsiCo

The coca-cola
company

Dr Pepper Snapple
Group

Cola

Pepsi

Coca-Cola

RC cola

Diet Cola

Diet Pepsi/Pepsi Light

Diet Coke/Coca-Cola Light,

Diet Rite

Pepsi ONE, Pepsi Max

Tab, Coca-Cola Zero

Diet RC Cola

Cherry-flavored Cola

Pepsi Wild Cherry

Coca-Cola Cherry

Cherry RC

Pepper style

Dr Slice

Mr. Pibb/Pibb Xtra

Dr Pepper

Orange

Tropicana, Twister, Tango,

Fanta

Crush Sunkist

Slice
Lemon-lime

Other Citrus flavor

Ginger ale

Minute Maid

Teem Sierra Mist

Sprite

7Up (in US)

7Up (other than US)

Lemon & paeroa

Schweppes

Mountain Dew

Mello Yello

Squirt, Sun Drop, Wink,

Kas Izze

Vault, Fresca, Lift

Schweppes (in Canada)

Seagrams Ginger Ale

Orangina
Canada Dry
Schweppes (in countries
other than Canada)
Vemors

Root beer

Mug Root Beer

Barqs

A&W Root Beer

Hires Root Beer
IBC Root Beer

32

Juices

Tropicana, Dole

Minute made

Motts Nantucket Nectars

Fruitopia

Snapples

Simply Orange
Iced tea

Lipton

Nestea

(ready-to-drink products

(manufactured by Nestle in

only, under license

the US and by a joint

from Unilever)

venture between Nestle and

Snapple

Coca-Cola elsewhere)
Sports drinks

Gatorade Propel

Powerade Aquarius

All Sports

Relentless

Segmentation, Target Marketing and Positioning:

Segmentation of Coca-Cola: Coca Cola segments its market in a number of ways.
Coca Colas Customer segmentation is mainly by their market demographically based
on age, income and family size. Coca Colas behavior segmentation has been a key to
the companys success.
Age is one of the most significant parts of the segmentation of Coca Cola. Coca Cola
introduces Coca Cola diet for the people who are suffering from diabetic and for those
who are likely to avoid sugar and for the aged people specially 40 plus. Coca Cola
mainly produces the Coca Cola and the main customer of Coca Cola is young people
whose age is 10 to 35.
Coca Cola also segment the market on the income basis by making little pack. They
have an awesome price rang to all class of people. They introduce different price of
containers with different size for the people whose income is different. They think about
student, poor people, and middle class people economic condition for their pricing.
Family size basis is also a base segmentation for Coca Cola. In our society, by their
marketing targeting, we have families with different family size. So Coca Cola makes a
variation in their served bottle size into many ways such as 500ml, 1L, 1.5L and 2L
pack. People can choose a suitable pack based on their family size.

33

Segmentation of Pepsi: Pepsi segments its market in several ways. Pepsi mainly
segments its market demographically assuming age, income, and family size. Pepsis
behavioral segmentation has been a key to the companys success.
Age is one of the most significant parts of the segmentation of Pepsi. Pepsi introduces
Pepsi diet for the people who are suffering from diabetic and for those who are likely to
avoid sugar and for the aged people specially40 plus. Pepsi mainly produces the Pepsi
Cola and the main customer of Pepsi Cola is young people whose age is 10 to 35.
On income basis Pepsi also segment their market by making little pack. They offer a
competitive price range to all class of people. They consider the economic situation in
our country. So they think about student, poor people and middle class people economic
condition for their pricing. Because the income of a rickshaw puller is very little so
Pepsi introduces the 200ml and the price of this bottle is Rs. 5 only, so anyone can
easily drink Pepsi by spending Rs. 5. Pepsi also serves 250ml, 500ml, 600ml, 1L,
1.25L, 1.50L and 2L pack.
Family size basis is also a base segmentation for Pepsi. In our society, there are many
families with different family size. So people can easily choose a suitable pack based on
their family size.
Target Marketing of Coca Cola: They make different values to capture this portion of
market by marketing targeting. However, they do not fiercely advertise like Pepsi does.
They offer Coca Cola in those places where students and young people gather mostly.
Their market segment profiles have shown that the majority of carbonated beverage
drinkers of Bangladeshi schools, colleges, universities, restaurants, hotels and fast food
stores. For this reason, they always spend huge amount of money to compete with Pepsi
in acquiring contracts with universities to have sold representation of their product
distribution. Coca Cola customers are mainly teenagers and young adults between the
ages of 16 to 35. Coca Cola also made diet coke for those who are suffering from sugar
problems.
Target marketing of Pepsi: The reason why Pepsi Cola has fiercely targeted this
market is because it is the largest among its users. Market segment profiles have shown
that the majority of carbonated beverage drinkers of Bangladesh are youth and middle

34

age people. Pepsi continually targets the Bangladeshi schools, Colleges, Universities,
Restaurants, Hotels and fast food stores. For this reason, they always spend huge
amount of money to compete with Coca Cola in acquiring contracts with universities to
have sold representation of their product distribution. Pepsi customers are mainly
teenagers and young adults between the ages of 14 to 30.
Positioning of Coca Cola: The main theme of Coca Cola is Open happiness Coca
Cola spends about a billion of dollars in trying to influence the new generation and
young boys and girls by giving varieties of advertisement and taste. Its packaging
attracts the young generation very much. Every year Coca Cola spends lots of dollars to
make a different creative slogan for targeted people which they want to serve. Coca
Cola plans to further creative positions that will give the product the greatest advantage
in their target markets as well as the Pepsi. Recently, Coca Cola has proven that it is the
highest selling cold drink in the whole country and above the world.
Positioning statement for Coca Cola: To all, who wants best drinks to quench their
thrust, Coca Cola is one of the best cold drinks, which provides the best quality and
taste in an affordable price.

Positioning of Pepsi: PepsiCo main slogan Generation Next! It spends billions of

dollars in trying to impress the young and nearly young with the different creative
slogan in every year. PepsiCo plans to further create positions with will give product the
greatest advantage in their target markets.
Positioning statement for Pepsi: To new generation, those who want the best taste in
drinks. Pepsi is a cold drink which gave the best taste, low fat in a reasonable spending.

35

SWOT Analysis:
Strength
Pepsi has a broader product line and outstanding reputation.
Merger of Quaker Oats produced synergy across the board.
Record revenues and increasing market share.
Lack of capital constraints (availability of large free cash flow).
Great brands, strong distribution, innovative capabilities.

Number one maker of snacks, such as corn chips and potato chips.

PepsiCo sells three products through the same distribution channel.

For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is
a big opportunity to reduce costs, improve efficiency and smooth out the impact of
seasonal fluctuations in demand for particular product.

Weakness
Pepsi hard to inspire vision and direction for large global company.
Not all PepsiCo products bear the company name.
PepsiCo is far away from leader Coca-cola in the international market demand is highly elastic.
Big Health Issues for Pepsi Drink - Fat and Sugar.

Opportunity
Drinks are the fastest-growing part of the industry.
There are increasing trend toward healthy foods.

36

Focus on most important customer trend - "Convenience".

Expanding Food Division in the all-embracing market.
Investment into added non carbonated articles in the US bazaar and
regional.
Threats
Pepsi is blamed for pesticide residues in their products in one of their most
promising emerging market e.g., in India.
PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft
foods (because of broader product line) which are well-run and financially
sound competitors.
Comply with All-embracing & Domestic Standards.

Structure of the Lumbini Beverage (Hajipur)

37

Classification of
Department

Sales Department

Sales
Development
manager

Territory
development
manager

Marketing
Department

Marketing
Development
manager
Customer
Executive

Pre Sales
Representative

Personal or HR
Department

HR Head

HR Manager

Account Department

Account
Development
coordinator

Account
Developme
nt
Executive

38

PRODUCTION PROCESS

Water purification section:

. It is stored in a reservoir. Before ensuring production, this raw water is being treated in
the water treatment plant. The process involved is known as coagulation process. Main
chemicals used are ferrous sulphate (FeSO4), calcium hydroxide (CaOH) and chlorine
(Cl). Initially water is treated with all these chemicals in the treatment tank and
becomes turbid. All the impurities get settled at the base and removes the turbidity.
Then, it is sent to the carbon tank where all the microorganisms and chlorines are
removed. The water so obtained is completely free from any kind of impurities and can
be used in further processing. The maximum alkalinity maintained until as much as 50
ppm.

Bottle Treatment section:

Used bottles returning from the market are stealthy. It is completely an auto process
which takes place within a machine called washer machine. The machine has three
compartments. Bottle for washing are placed on the conveyer come inside the machine
and get successive treatment. Bottles are treated with 4% caustic soda in the first
compartment at a temperature of 100-150 F. Next these lire conveyed to the second
compartment, where bottles are again treated with 2% caustic soda at a temperature of
120 F, in the third compartment bottles are treated with soft water. Time duration in

39

each compartment is 10 minutes. Bottles are then sent through the inspection center,
where these are watched against strong light.

Process of preparing the liquid

Syrup room is situated in the first floor. Here syrup is prepared from filtered water,
sugar and the concentrate. The room is well equipped with several tanks and filter press.
The firestone is heating tank in which syrup is actually prepared. Calculated amount of
syrup along with concentrate and water are being heated up to 85C. Thus a saturated
solution is being prepared. Next it is sent through a machine called filter press where
syrup is filtered. Filtered syrup is next passed through a Para flow cooler, when by
recycling and glycol method, the temperature of the syrup is cooled down to 20-25 C.
Cooled syrup is then stored in the syrup tanks. Syrup comes to the traumatic machine.
Here syrup is mixed with carbonated water under pressure in definite proportion.
Inspected bottles gradually come under the filtration machine. Carbonated syrup by this
time fills the filter machine. From this machine syrup is poured into the bottles in
calculated amount. The exact rate of filling is 620 bottles per minute. Meanwhile,
crowner machine helps in closing the bottle mouth with caps which makes them
completely air tight.
Ready bottles are again sent through an inspection center for through examination on
the conveyer. Next they are collected from the conveyer come.

40

Objective of the Study

To know the view point of retailers about companys distribution channels and
consumers preferences related to Soft Drinks of PepsiCo and its rival companies.

Methodology used in research

1) Method of study: Descriptive Type, this survey is done by using descriptive

method, which includes Questionnaire method and direct communication.

2) Sample Size: There are 40 retail Outlets, who were asked for giving his views
about Distribution Channels of PepsiCo and Customers preference related to soft
drinks and Mineral Water.

3) Sample Area: Mainly, the area which was recommended main areas of (Gaya)
and was focused in this survey but there were some other Outlets which belong to
some other areas.

41

4)

Sample Unit: All retail outlets selling beverages of PepsiCo and its rival
Company in recommended area.

42

1. Which companys brand/brands do you sale?

Companys Name
PepsiCo
Coca-Cola
Both

No. of Respondent
13
6
21

Percentage (%)
32.5%
15%
52.5%

43

When the Question was asked the retailers that which Companys brand they sold then
most of them replied, both PepsiCo and Coca-Cola whereas survey shows that
individually PepsiCos brands got priority first and liked by many people.

2. Why do you sale Coca-Colas brands?

Companys Name
Demand is more
Service is good
Stocks are easily available

No. of Respondent
8
13
6

Percentage (%)
29.6%
48.1%
22.3%

44

Data shows that there is only one factor which makes the Coca-Cola more effective
than PepsiCo, i.e., service quality. Also there are 8 retailors who believe that demand
makes it more effective and 6 says there is no problem in availability of stocks.

45

3. Which brand/brands people like most?

Brand Name

No. of Respondent

Percentage (%)

Pepsi

12.5%

Slice

5%

Mountain Dew

5%

7Up

10%

Mirinda

15%

Coke

5%

Thums Up

20%

Fanta

5%

Sprite

20%

Maaza

2.5%

46

Data shows that in case of Coca-Cola, two brands Thumps Up and Sprite have high
demand but consistency cannot be seen in other brands whereas all products of PepsiCo
have same demand in some manner due to its mild taste which differentiate it from
Coca-Colas ones.

47

4. Do you feel inconveniency in availability of stock?

Option
Yes
No

No. of Respondent
13
21

Percentage (%)
38.2%
61.8%

Data shows that there are very few shops that feel inconveniency in availability of
stock, which means that distributor invests adequate amount to fulfill the demand of
retailers and run the business in effective manner.

48

5. Which type/types of problem/problems do you face?

Problems
Late delivery
Not providing freeze
No maintenance

No. of Respondent
15
9
10

Percentage (%)
44.1%
26.5%
29.4%

There are very common problems which are faced by the retailers and are mentioned
above. These problems arise due to some financial causes or any personal reasons
which are business perspective.

49

6. Do they provide reasonable feed back against your complain?

Option
Yes
No

No. of Respondent
21
13

Percentage (%)
61.8%
38.2%

Data shows that company provides corrective response to the retailers, which is good
for the reputation and smooth running of businesses.

50

7. Duration within which they provide their response.

Option
1 to 10 days
1 to 20 days
1 months
Not fixed

No. of Respondent
4
13
7
10

Percentage (%)
11.8%
38.2%
17.5%
29.4%

As we see in previous question that most of the retailers replied yes that they get
reasonable feedback from the company but the duration of response can be seen that it

51

is not up to the mark, which in some manner imbalance the business between company
and retailers.

8. Do they replace damaged and outdated stocks?

Option
Yes
No

No. of Respondent
8
26

Percentage (%)
23.5%
76.5%

It can be seen in the data that there are very few retail outlets whose damaged and
outdated stocks are replaced by the company which leads to disagreement between
company and retailers.

52

9. Do they provide you with the accessories?

Option
Yes
No

No. of Respondent
9
25

Percentage (%)
26.4%
73.6%

There are very few retailers who are provided with the accessories
like holding, umbrella, stall, etc. which shows dissatisfaction among the
rest retailers.

53

10. Are you satisfied with the service provided by the Company?

Option
Yes
No

No. of Respondent
22
12

Percentage
64.7%
35.3%

Data shows that in spite of having some problems, not having coordination sometimes
and due to bad response misunderstanding arises between company and retailers but the
company with its effective and efficient Channel and Co-Worker eliminate all the
loopholes and get success in running its business in effective and efficient manner and
enjoying smooth survival and prosperity.

54

Findings
Market share of PepsiCo is 32.5% whereas coke stands with 15%.

27.5% retailers want improved services from the company in Mango.

Only 61.8% retailers are satisfied with the companys services.

Easy replacement of damaged or outdated stock by company is accepted by only

23.5% of retailers.

Only few retailers are provided with the accessories.

Only sometimes the service of the company matches with the expectations of the
actual service.

A lesser percentage of the retailers are always satisfies with the schemes given
along with the product.

Limitation

55

This research report is made on the view point of retailers of the few areas of
(Gaya ) which is very small in comparison to total market penetration of PepsiCo.
Therefore it will be very difficult to state that the condition will be same for all
places.

Since the retailers did not have enough time in working hour therefore they did
not want to disclose the information clearly which hampered the survey.

RECOMMENDATIONS
I am giving the following suggestion hoping if implemented will increase the retail
selling of Pepsi in Gaya.
As it can be seen that there are more retailers selling PepsiCos brands than CocaCola but there is also a chance for PepsiCo to diversify the left retailers of CocaCola to PepsiCo by Providing them what they expect from the company.
Therefore in my opinion it should try to diversify them by making some offer.
Company should appoint staffs in adequate manner to deal with the problems of
the retailers such as availability of stock, feedback against complaints, etc. so that
they do not feel inconveniency.
Also company should provide the retailers with freeze and maintain it properly
because many of them do not have their own. If it will be provided them they
may keep PepsiCos products and sell them.

56

We should try to have a contract with the beer bar in Jamshedpur during winter
season because it is the slow season for cold drink but peak season for the bars
people like to take Pepsi with the other drink in bar.
Put glow signboard on the shop not only in main areas but also in the interiors it
will definitely increase the sale of PepsiCo.
Make every retailers know about the scheme.

57

Conclusion

PepsiCo, Inc. is a global food, snack and beverage company, which manufactures
a variety of salty, sweet and grain-based snacks, carbonated and non-carbonated
beverages and foods. It was incorporated in 1965 and has 294000 employees
across the world.

As shown in the research the company has overall a nicely and smooth
running business in Jamshedpur city and also has good marketing channels to
operate this. Despite this some problems are raised there but these are also being
resolved by the company. Since the problems are limited and takes too much time
to resolve them therefore the company also has a requirement of a dedicated
department to deal with these problems.

58

Bibliography
En.wikipedia.org/wiki/PepsiCo

Pepsicoindia.co.in

www.scribd.com/doc/36556177/PepsiCo-India

Workshop on Research Methodology By C.R. Kothari

59

Annexure

Questionnaire

Outlets
Name:

Area:
.....

1. Which companys brand/brands do you sale?

PepsiCo

Coca-Cola

Both

2. Why?

Date:

60

3. Which brand/brands people like most?

4. Do you feel
brand/brands?

inconveniency

in

availability

of

this/these

Yes
No

5. Which type/types of problem/problems do you face?

6. Do they provide reasonable feed back against your complain?

61

Yes
No

7. Duration within which they provide their response.

1 to 10 days
1 to 20 days
1 month
Not fixed

8. Do they replace damaged and outdated stocks?

Yes
No

9. Do they provide you with accessories?

Yes
No

62

10.
Are you satisfied with the services provided by the
Company?

Yes

No