ACKNOWLEDEMENTS

It has been a privilege working with a host of talented individual, all of whom wanted this
training program to be as successful possible. It is prepared for the partial fulfillment of the
requirement of the degree of Bachelor in Business Administration.
This on the job training is a true combination of dedication and hard work for every one
involved, and I would like to thank the following peoples for their contributions, without which
the report could never have been the way it is today.
First of all, I would to thank International American University for giving mw this opportunity.
Working on this project has really helped me know the real working situation.
I would also like to forward my gratitude towards Mr Nirmal Gyawali (Marketing Cheif) of
Varun Pvt. Ltd. who guided me, throughout my Internship program. I gratify towards Varun
Pvt. Ltd. And all the members of the organization for their kind support.
Finally, I am grateful to the many hearts and hands which supported me to accomplish this work.

Suman Nepal
Student Code: 10-F-2031
KINGS COLLEGE

Executive Summary
The soft drinks market in the advanced economies like the US is saturated or in some
cases declining sales (Reuters). Given a fast growth rate of the Nepal GDP, and
consequently, higher levels of income distribution in the population, Pepsi is
increasingly turning to emerging economies like Nepal to sustain its global growth.
The Nepal packaged food market is huge with the packaged tea and biscuit segments
on top. Although soft drinks constitute the third largest segment, compared to other
developing countries the market penetration is still very low. This indicates a further
potential for rapid growth. It is a telling point that the average per capita consumption of
soft drinks in the US is 700 bottles per capita / year, while in Nepa lit is only 10 bottles a
year.
The sales of bottled water are also expected to rise rapidly in the next five years with
an annual growth rate of 16.5%. Growing health awareness and increasing demand for
hygienic products will fuel the dynamic growth of juices by an annual rate of almost
22%. Penetration in rural markets will also contribute to sales increase in soft drinks.
Nepal is a unique market for Pepsi in that, it is one of the few markets, where Pepsi
outsells Coke, however 2 of Coca Colas products hold the top 3 spots in terms of
market share, so Pepsi does have an opportunity to increase its market share. Its
biggest competitor is a home grown brand called Thums Up which had been acquired by
Coca-Cola when it entered Nepal in 2003.
Pepsi which has true to its global image always been seen as a young, trendy
brand, however after a spurt of creative marketing in the late 90s, early 2000s which
boosted the Pepsi brand immeasurably, it has for some time been using generic
global marketing campaigns which have not struck a chord with the young in India,
and neither has it attempted to tap into the family, feel good segment which has been
Coca-Colas consistent strategy.
Pepsi has a lot of inherent brand equity in the Nepal market, which while has been
dented by the Pesticide controversy in 2003 & 2006 has still not hampered its growth in
the India.
If Pepsi can capitalise on this and build on it, it can create a legion of loyal customers
which can sustain the revenues potentially lost in other saturated markets.
We have in our report attempted to completely understand Pepsis current brand
image, positioning, and the inherent equity in the brand, and compared it with CocaColas, and then in part B suggested a way forward for Pepsi encompassing all the above
elements.