CHAPTER-1

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 CHAPTER - I
EXECUTIVE SUMMARY
Today many new companies are coming in to existence and because of these the competition is also
growing rapidly. Because of this reason they have to compete with their competitors constantly.
In some industries the new companies may not come into existence but the competition between
the existing companies is growing more and more. The soft drink industry is mainly suffering with
this particular problem. The Companies have to continuously compete with their competitors to
get good, market share and good profits. To face their competitors they have to know their position
and the competitor’s position in the market. For this, the companies will compare itself with their
competitor that means they will do the comparative analysis in all aspects
I was carried out this project at Touchstone Services Pvt. Ltd, Indore. They are distributor of
PepsiCo food and snacks of Indore.

The project title is “TO DRIVE GREEN CALL BY PEPSICO AT TOUCH STONE
SERVICES PVT LTD IN INDORE”.

The duration for this project was of 45 Days i.e. from 1ST JUNE to 15 JULY, 2017. In this period
I did a survey of 200 outlets and collected the useful data for this project.
“Item by Item comparison of two or more comparable alternatives, processes, products,
qualification, set of data and systems etc. in accounting for, for example changes in a financial
statements items over several accounting period maybe presented together to detect the emerging
trends in the firms operation and results”.
From this we can understand that Comparative analysis means the comparison between the similar
things (products, place, technologies, living beings and etc.) Regarding the features, nature,
functions, behavior, SWOT, and many other characters is called comparative analysis.

In this comparative analysis the researcher will take any two or more similar products (That means
the functioning of the products are almost same) and compare the common and the similar features
of the products to find out that which the best one is.
In comparative analysis the Company will compare itself with the company which is in the top
position in that industry or which is top in the position in that particular area or region; from this
they can understand their position in that industry. It will be very useful know what is the strength
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and weakness of the Company and the company will try rectify the problems in order to increase
their performance to reach and to beat out that other company with whom they are comparing their
company.

PEPSICO
COMPANY
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York,
United States, with interests in the manufacturing, marketing and distribution of grain-based snack
foods, beverages, and other products.
PepsiCo products are enjoyed by consumers one billion times a day in more than 200
countries and territories around the world. PepsiCo is driven by a complementary food and beverage
portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product
portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate
more than US $1 billion dollars each in estimated annual retail sales.

The recipe for Pepsi, the soft drink, was first developed in the 1890s by a New Bern, North Carolina
pharmacist and industrialist, Caleb Bradham, who named it "Pepsi-Cola" in 1898. As the cola
developed in popularity, he created the Pepsi-Cola Company in 1902 and registered a patent for his
recipe in 1903. The Pepsi-Cola Company was first incorporated in the state of Delaware in 1919.
The company went bankrupt in 1931 and on June 8 of that year the trademark and syrup recipe was
bought by Charles Guth who owned a syrup manufacturing business in Baltimore, Maryland. Guth
was also the president of Loft Incorporated, a leading candy manufacturer and used the company's
labs and chemists to reformulate the syrup. He further contracted to stock the soda in Loft's large
chain of candy shops and restaurants, which were known for their soda fountains, used Loft
resources to promote Pepsi, and moved the soda company to a location close by Loft's own facilities
in New York City. In 1935 the shareholders of Loft sued Guth for his 91% stake of PepsiCo in the
landmark case, Guth v. Loft Inc. . Loft won the suit and on May 29, 1941 formally absorbed Pepsi
into Loft, which was then rebranded as Pepsi Cola Company that same year. (Loft restaurants and
candy stores were spun off at this time.) In the early 1960s the company product line expanded with
the creation of Diet Pepsi and purchase of Mountain Dew.

Separately, the Frito Company and H.W. Lay & Company – two American potato and corn chip
snack manufacturers – began working together in 1945 with a licensing agreement allowing H.W.
Lay to distribute Fritos in the South-eastern United States. The companies merged to become
FritoLay, Inc. in 1961

PepsiCo. Inc. was formed in 1965 by Donald M. Kendall, President and Chief Executive Officer of
Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the
merger of the two companies.

PepsiCo. has since expanded from its namesake product Pepsi to a broader range of food and
beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger
with Quaker Oats in 2001—which added the Gatorade brand to its portfolio.

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As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than $1 billion
each, and the company’s products were distributed across more than 200 countries, resulting in
annual net revenues of about $65 billion.

Based on net revenue, PepsiCo is the second largest food & beverage business in the world. Within
North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.

GUIDING PRINCIPLES
To advance our mission and vision with honesty, fairness and integrity, we are committed
to six guiding principles. When conducting business around the world, we must always strive to:

Care for our customers, our consumers and the world we live in.

We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit toward
solutions that benefit both our company and our constituents. We see our success as inextricably
linked to that of our customers, consumers and communities.

Sell only products we can be proud of.

The true test of our standards is our own consumption and endorsement of the products we sell.
Without reservation. Our confidence helps ensure the quality of our products, from the moment we
purchase ingredients to the moment it reaches the consumer's hand.

Speak with truth and candor.

We tell the whole story, not just what's convenient to our individual goals. In addition to being
clear, honest and accurate, we are responsible for ensuring our communications are understood.

Win with diversity and inclusion.

We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings
new perspectives into the workplace and encourages innovation, as well as the ability to identify
new market opportunities.

Balance short-term and long-term.

In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this
balance helps sustain our growth and ensures our ideas and solutions are relevant both now and in
the future.

Respect others and succeed together.

Our mutual success depends on mutual respect, inside and outside the company. It requires people
who are capable of working together as part of a team or informal collaboration. While our company
is built on individual excellence; we also recognize the importance and value of teamwork in turning
our goals into accomplishments.

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OUR GLOBAL CODE OF CONDUCT: DOING BUSINESS THE RIGHT
WAY
At PepsiCo, we believe acting ethically and responsibly is not only the right thing to do, but
also the right thing to do for our business.

Our PepsiCo Global Code of Conduct (our "Code") has been revised effective October 1, 2012 to
address changing laws that impact our business. It is designed to provide our employees with
specific guidance.

All PepsiCo employees are expected to embrace the principles of our Code and:

▪ show respect in the workplace;

▪ act with integrity in the marketplace;
▪ ensure ethics in our business activities; and
▪ Perform work responsibly for our shareholders.
▪ Our Code remains our roadmap and compass for doing business the right way.

ACQUISITIONS AND DIVESTMENTS

PepsiCo went on to acquire many businesses between 1970s and mid-1990s. Some
of the brands that PepsiCo acquired during this period are;
1. Pizza Hut
2. Taco Bell
3. KFC (previously known as Kentucky Fried Chicken)
4. Hot n Now
5. East Side Mario's
6. D'Angelo Sandwich Shops
7. Chevys Fresh Mex
8. California Pizza Kitchen
9. Stolichnaya, a Russian vodka, via licensed agreement
10. Wilson Sporting Goods 11. North American Van Lines.

Towards the beginning of 1997, PepsiCo started selling off its non-core businesses
to concentrate on its core business of beverages and snacks. While selling its non-
core businesses, PepsiCo started expanding its product portfolio beyond soft drinks
and snacks.

1998: It purchased orange juice company, Tropicana Products.

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2001: PepsiCo merged with Quaker Oats Co., which added Gatorade sports drinks,
Chewy Granola bars, Aunt Jemima and several other brands to its product portfolio.
2009: PepsiCo acquired the two largest bottlers of its products in North America;
Pepsi Bottling Group and PepsiAmericas. The acquisition cost $7 billion and was
completed in 2010.
2011: PepsiCo acquired a majority stake(two-thirds) in Wimm-Bill-Dann Foods, a
Russian company. This is PepsiCo's largest international acquisition. In October
2011, PepsiCo acquired the remaining 23% stake of Wimm-Bill-Dann Foods and
became the largest food and beverage company in Russia.

GLOBAL BUSINESS PRESENCE

As of 2010, PepsiCo is separated into four main divisions;

1. PepsiCo Americas Foods,
• Frito-Lay North America (FLNA),
• Quaker Foods North America (QFNA),
• Latin America Foods (LAF)
2. PepsiCo Americas Beverages,
3. PepsiCo Europe, and
4. PepsiCo Asia, Middle East and Africa.
As of 2009, 71% of the company’s net revenues came from North and South
America, 16% from Europe and 13% from Asia, the Middle East and Africa.
As a result of the acquisitions led by PepsiCo, today it is a global food and
beverage company, operating in about 200 countries! It has about 100 global
and local brands!

PepsiCo is a $66 billion global powerhouse

focused on two complementary businesses with
attractive growth, margins and returns —
global snacks and global beverages. In 2017,
they delivered core net revenue growth1 of 14
percent. Nestled within these two businesses is
our global nutrition business, which in 2011
grew core net revenue 19 percent, excluding
acquisitions.

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 PRODUCT PORTFOLIO
PepsiCo’s product mix as of 2012 (based on worldwide net revenue) consists of 63
percent foods, and 37 percent beverages. On a worldwide basis, the company’s
current products lines include several hundred brands that in 2009 were estimated to
have generated approximately $108 billion in cumulative annual retail sales.
The primary identifier of a food and beverage industry main brand is annual sales
over $1 billion. As of 2009, 19 PepsiCo brands met that mark: Pepsi-Cola,
Mountain Dew, Lay's, Gatorade, Tropicana, 7Up, Doritos, Lipton Teas, Quaker
Foods, Cheetos, Mirinda, Ruffles, Aquafina, Pepsi Max, Tostitos, Sierra Mist,
Fritos, and Walker's.
PEPSICO BRANDS
FOOD BEVERAGES
Frito Lay Pepsi
Uncle Chips Diet Pepsi
Doritos Gatorade
Cheetos Tropicana
Quakes 7 UP
Quaker pancake syrup & mixes Lipton
Quaker Oats Aquafina
Cap 'n' Crunch Mirinda
Near East Sierra Mist Natural
Chewy Granola Bar Sierra Mist Zero Calorie
KURKURE Namkeen AMP Energy
KURKURE SoBe
Walker's Mountain Dew
Tostitos Diet Mountain Dew
Ruffles Naked Juice
Fritos IZZE
Sun Chips Ocean spray
Quaker Life Tropicana Trop 50
Red Rock Pepsi Max
Miss Vickie's G Series Pro
Mother's Propel Zero
Bocabits Mug
Fandangos Dole Juices & Blends
Smith's
Rice A Roni
Crujitos
Hostess potato chips
Grandma's Cookies
Stacy's

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PEPSICO BEVERAGES

PEPSICO FOODS

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 SCOPE OF STUDY

This study basically tries to discover that how GREEN CALL sell tool is used during
the process of selling and to find the current position of PEPSICO in the market. It
also tries to discover the present preferences of the customer and retailers on the basis
of product. It is primarily directed to the general public but was done only Indore.

OBJECTIVE OF THE STUDY

• To understand how the GREEN CALL works

• To improve Green Call count in Indore(MP)
• To find new sales opportunities in the market
• To maintain a good relation with the outlets for increase in sale
• To focus on execution by advertisement

RESEARCH METHODOLOGY
Research design is the basic framework which provides guidelines for the rest of
research process. It specifies the methods for the data collection and data analysis. In
this research project we have use the survey method of data collection, to be more
specific questionaries’ method. We conducted a survey in Indore. Respondent in the
sample size were ask to fill the questionnaires to gather the data.
Research Method- Survey
Tools of the data collection- Questionnaire
Sample -60
Product -Frito-Lay

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CHAPTER-2

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 Chapter-2
COMPANY PROFILE
ABOUT PEPSICO
At the heart of PepsiCo is “Performance with Purpose”

Our goal to deliver top-tier financial performance while creating sustainable growth and
shareholder value. In practice, Performance with Purpose means providing a wide range of foods
and beverages from treats to healthy eats; finding innovative ways to minimize our impact on the
environment and reduce our operating costs; providing a safe and inclusive workplace for our
employees globally; and respecting, supporting and investing in the local communities where we
operate.

PepsiCo India Region: Leadership through Performance with Purpose

PepsiCo entered India in 1989 and in a short period, has grown into one of the largest MNC food
and beverage businesses in the country. PepsiCo’s growth in India has been guided by
“Performance with Purpose”.

Large investor in India with strong brands:

PepsiCo has been consistently investing in India, in the areas of product innovation, increasing
manufacturing capacity, ramping up market infrastructure, strengthening supply chain and
expanding company’s agriculture programme. The company has built an expansive beverage and
snack food business supported by 62 plants across the country. In two decades, the company has
been able to organically grow eight brands each of which generate Rs. 1000 crores or more in
estimated annual retail sales and are household names, trusted across the country.

A growing portfolio of enjoyable and wholesome snacks and beverages:

PepsiCo India’s diverse portfolio reflects its commitment to nourish consumers with a diverse
range of fun and healthier products and includes iconic brands like Pepsi, Lay’s, Kurkure,
Tropicana, Gatorade and Quaker. In addition to the recently launched Lay’s Maxx, 7UP Revive and
Tropicana Slice Alphonso, the portfolio includes several healthier treats like Quaker Oats,
Tropicana juices, rehydrator Gatorade, Tata Water Plus and Quaker flavored oats.

Model partnership with over 24,000 farmers:

PepsiCo India has pioneered and established a model of partnership with farmers and now works
with over 24,000 happy farmers across nine states. More than 45 percent of these are small and
marginal farmers with a land holding of one acre or less. PepsiCo provides 360-degree support to
the farmer through assured buy back of their produce at pre-agreed prices, quality seeds, extension
services, disease control packages, bank loans, weather insurance, and the latest technological
practices. The association with PepsiCo India has not only raised the incomes of small and marginal
farmers, but also their social standing.

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Global leader in water conservation:

In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to achieve
‘Positive Water Balance’ in the beverage world, and has been Water Positive since then. In 2015,
PepsiCo India saved 12.75 billion litres more that it consumed in its manufacturing operations. The
company made this possible through innovative irrigation practices like direct seeding, community
water recharging initiatives, and by reducing the consumption of water in its manufacturing
facilities. PepsiCo is lauded for its efforts for water conservation and 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 amongst others.

Care for the environment:

PepsiCo India is focused on reducing its carbon footprint. In 2015, PepsiCo’s India’s Food and
Beverage plants had a 78% and 41% share from renewable energy sources, respectively such as bio
mass and rice husk boilers and wind turbines. Initiatives such as reduction in use of chemicals, eco-
friendly packaging initiatives and efficient waste management help reduce load on the environment.
PepsiCo in partnership with the NGO Exnora and local municipalities has also been working on a
unique waste collection and treatment model programme called ‘Waste-to-Wealth’. The award
winning programme has positively impacted more than 5, 00,000 people.

Following the successful implementation of the Waste to Wealth model programme, PepsiCo India
has handed over four municipalities in Tamil Nadu (Chennai, Nagapattinam, Tenkasi, Cuddalore)
and one municipal corporation in Haryana (Panipat), to the respective authority for sustained
delivery.

Exemplary employment practices:

PepsiCo India provides direct and indirect employment to almost 2, 00,000 people. The company
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 firmly believes that encouraging diversity means encouraging
policies and systems that respect people’s special needs. Not only does PepsiCo have a vibrant and
diverse workforce, it takes the utmost care to make dynamic business leaders of its employees and
foster their career and personal growth through differentiated experiences and a robust leadership
development model.

OUR MISSION AND VISION

At PepsiCo we believe that business and society can thrive together. We are guided by
Performance with Purpose: delivering top-tier results in a way that sustains and respects business,
society and the planet.

Our Mission
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods and
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beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening
treats. We are committed to investing in our people, our company and the communities where we
operate to help position the company for long-term, sustainable growth.

Our Vision

At PepsiCo, we're committed to achieving business and financial success while leaving a positive
imprint on society – delivering what we call Performance with Purpose.

In practice, Performance with Purpose means providing a wide range of foods and beverages from
treats to healthy eats; finding innovative ways to minimize our impact on the environment and
reduce our operating costs; providing a safe and inclusive workplace for our employees globally;
and respecting, supporting and investing in the local communities where we operate.

Wherever we do business, Performance with Purpose is our guide. We believe that delivering for
our consumers and customers, protecting the environment, sourcing with integrity and investing in
our employees are not simply good things to do, but that these actions fuel our returns and position
PepsiCo for long-term, sustainable growth.

COMPETITOR
International
• Utz: Utz Quality Foods, Inc. based in Hanover, Pennsylvania, is the largest
independent privately held snack brand in the United States The company was founded
in 1921 and distributes a variety of potato chips and other snack foods throughout the
United States.
• Pringles: It is an American brand of potato and wheat-based stackable
snack chips owned by Kellogg's. Originally marketed as "Pringles Newfangled Potato
Chips", Pringles are sold in more than 140 countries,[1] and it was the fourth most
popular snack brand after Lay's, Doritos and Cheetos
• Kettle chips: Kettle Foods, Inc. is an international manufacturer of potato
chips, tortilla chips, and nut butters based in Salem, Oregon, United States, with a
European and Middle East headquarters in Norwich, United Kingdom. As of 2006 they
were the largest natural potato chip brand in the U.S
• ACT II : ACT II Popcorn is the most loved and preferred popcorn brand over the world.
Tasty, delicious and easy to make, ACT II Popcorn is loved by kids and parents alike.
Recently introduced Act II Nachoz.
• Kraft Foods: Kraft foods Group, Inc is an American manufacturing and processing
conglomerate headquatered in the Chicago subgroup of Northfield,llinois. It markets

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 many brands in more than 170 countries. 12 of its brands annually earn more than $1
billion worldwide
• Kellogg’s: The Kellogg Company (also Kellogg's, Kellogg, and Kellogg's of Battle
Creek) is an American multinational food manufacturing company headquartered
in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience
foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks,
frozen waffles, and vegetarian foods. Kellogg's products are manufactured in 18
countries and marketed in over 180 countries.

National
• Bingo(ITC): Potato Chips, Indian Finger Snacks from ITC. Associated with youth, fun and
excitement, Bingo! offers multiple variants of potato chips and finger snacks to fulfill the
Indian consumer's need for variety and novelty with innovative formats and 'irresistible
combinations' in flavor’s
• Diamond: Prataap Snacks is a subsidiary of a renowned group of companies, which
maintains an interest in finance and real estate. The company started its snacks production
business in the last decade and in a few short years has established Yellow Diamond Snacks,
which is now a recognized brand to over a million consumers around the world.
• Parle: Since 1929, It has grown to become India's leading manufacturer of biscuits
and confectionery. It has also producing wayfers and namkeen.
• MTR: MTR Foods is a food products company based in Bangalore, India. The company
manufactures a range of packaged foods including breakfast mixes, ready to eat meals,
masalas and spices, snacks and beverages. Snacks: In 2011, MTR launched a sub-brand
called MTR Snack Up with a range of traditional South Indian snacks like Khara Boondi
and Benne Murukku.
• Balaji: Balaji Wafers and Namkeen group, based in Rajkot, Gujarat, India, manufactures
and distributes potato chips and other grain-based bagged snacks in various
flavours.[1] Started as a micro business it has evolved into a Rs 4000 crore company of
quality products with an indigenous taste. Balaji Wafers captured a 70% market share in
snacks market
• Akash: Beginning as a cottage industry at Indore in Madhya Pradesh, Aakash Global
Foods Pvt. Ltd. envisioned the emerging needs and trends of the market and was the first
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 to adopt mechanization. Today, the company has one of the best state-of-the-art plants
producing products of international standards.
• Patanjali: Patanjali Ayurved Limited was established in 2006 with a thought of rural and
urban development. Recently it has developed wayfers and oats.

CUSTOMER
PEPSICO INC'S CUSTOMERS
Our primary customers include wholesale and other distributors, foodservice customers,
grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers,
membership stores and authorized independent bottlers.

We normally grant our independent bottlers exclusive contracts to sell and manufacture
certain beverage products bearing our trademarks within a specific geographic area. These
arrangements provide us with the right to charge our independent bottlers for concentrate, finished
goods and Aquafina royalties and specify the manufacturing process required for product quality.
We also grant distribution rights to our independent bottlers for certain beverage products bearing
our trademarks for specified geographic areas.

Since we do not sell directly to the consumer, we rely on and provide financial incentives to our
customers to assist in the distribution and promotion of our products. For our independent
distributors and retailers, these incentives include volume-based rebates, product placement fees,
promotions and displays. For our independent bottlers, these incentives are referred to as bottler
funding and are negotiated annually with each bottler to support a variety of trade and consumer
programs, such as consumer incentives, advertising support, new product support, and vending and
cooler equipment placement. Consumer incentives include coupons, pricing discounts and
promotions, and other promotional offers. Advertising support is directed at advertising programs
and supporting independent bottler media. New product support includes targeted consumer and
retailer incentives and direct marketplace support, such as point-of-purchase materials, product
placement fees, media and advertising. Vending and cooler equipment placement programs support
the acquisition and placement of vending machines and cooler equipment. The nature and type of
programs vary annually.Retail consolidation and the current economic environment continue to
increase the importance of major customers.

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Our Related Party Bottlers
We have ownership interests in certain of our bottlers. Our ownership is less than 50%, and since
we do not control these bottlers, we do not consolidate their results. Our products are brought to
market through DSD, customer warehouse and distributor networks. The distribution system used
depends on customer needs, product characteristics and local trade practices.
We, our independent bottlers and our distributors operate DSD systems that deliver snacks and
beverages directly to retail stores where the products are merchandised by our employees or our

bottlers. DSD enables us to merchandise with maximum visibility and appeal. DSD is especially
well-suited to products that are restocked often and respond to in-store promotion and
merchandising.

Customer Warehouse

Some of our products are delivered from our manufacturing plants and warehouses to customer
warehouses and retail stores. These less costly systems generally work best for products that are
less fragile and perishable, have lower turnover, and are less likely to be impulse purchases.

Distributor Networks

We distribute many of our products through third-party distributors. Third-party distributors are
particularly effective when greater distribution reach can be achieved by including a wide range of
products on the delivery vehicles. For example, our foodservice and vending business distributes
snacks, foods and beverages to restaurants, businesses, schools and stadiums through third-party
foodservice and vending distributors and operators.

PepsiCo Inc's Customers, 2017

➢ Customers in Food Processing Industry.
➢ Customers in Real Estate Investment Trusts Industry.
➢ Customers in Professional Services Industry.
➢ Customers in Restaurants Industry.
➢ Customers in Department and Discount Retail Industry.
➢ Customers in Grocery Stores Industry.
➢ Customers in Wholesale Industry.

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 PEPSICO SWOT ANALYSIS
STRENGTHS
• Branding - One of PepsiCo’s top brands is of course Pepsi, one of the most recognized brands of
the world, ranked according to Interbrand. As of 2008 it ranked 26th amongst top 100 global
brands. Pepsi generates more than $15,000 million of annual sales. Pepsi is joined in broad
recognition by such PepsiCo brands as Diet Pepsi, Gatorade Mountain Dew, Thirst
Quencher, Lay’s Potato Chips, Lipton Teas (PepsiCo/Unilever Partnership), Tropicana
Beverages, Fritos Corn, Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafina Bottled Water,
Cheetos Cheese Flavoured Snacks, Quaker Foods and Snacks, Ruffles Potato Chips, Mirinda,
Tostitos Tortilla Chips, and Sierra Mist.
The strength of these brands is evident in PepsiCo’s presence in over 200 countries. The company
has the largest market share in the US beverage at 39%, and snack food market at
25%. Such brand dominance insures loyalty and repetitive sales which contributes to over $15
million in annual sales for the company
• Diversification - PepsiCo’s diversification is obvious in that the fact that each of its top 18 brands
generates annual sales of over $1,000 million. PepsiCo’s arsenal also includes readyto-drink teas,
juice drinks, bottled water, as well as breakfast cereals, cakes and cake mixes. This broad product
base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business
climates.
• Distribution - The company delivers its products directly from manufacturing plants and
warehouses to customer warehouses and retail stores. This is part of a three pronged approach which
also includes employees making direct store deliveries of snacks and beverages and the use of third
party distribution services.

WEAKNESSES
• Overdependence on Wal-Mart - Sales to Wal-Mart represent approximately 12% of
PepsiCo’s total net revenue. Wal-Mart is PepsiCo’s largest customer. As a result PepsiCo’s fortunes
are influenced by the business strategy of Wal-Mart specifically its emphasis on private-label sales
which produce a higher profit margin than national brands. Wal-Mart’s low price themes put
pressure on PepsiCo to hold down prices.
• Overdependence on US Markets - Despite its international presence, 52% of its revenues
originate in the US. This concentration does leave PepsiCo somewhat vulnerable to the impact of
changing economic conditions, and labour strikes. Large US customers could exploit PepsiCo’s
lack of bargaining power and negatively impact its revenues.
• Low Productivity - In 2008 PepsiCo had approximately 198,000 employees. Its revenue per
employee was $219,439, which was lower than its competitors. This may indicate comparatively
low productivity on the part of PepsiCo employees.
• Image Damage Due to Product Recall - Recently (2008) salmonella contamination forced
PepsiCo to pull Aunt Jemima pancake and waffle mix from retail shelves. This followed incidents

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 of exploding Diet Pepsi cans in 2007. Such occurrences damage company image and reduce
consumer confidence in PepsiCo products.
OPPORTUNITIES
• Broadening of Product Base - PepsiCo is seeking to address one of its potential weaknesses;
dependency on US markets by acquiring Russia’s leading Juice Company, Lebedyansky, and V
Water in the United Kingdom. It continues to broaden its product base by introducing True North
Nut Snacks and increasing its Lipton Tea venture with Unilever. These recent initiatives will enable
PepsiCo to adjust to the changing lifestyles of its consumers.
• International Expansion - PepsiCo is in the midst of making a $1, 000 million investment in
China, and a $500 million investment in India. Both initiatives are part of its expansion into
international markets and a lessening of its dependence on US sales. In addition the company plans
on major capital initiatives in Brazil and Mexico.
• Growing Savoury Snack and Bottled Water market in US - PepsiCo is positioned well to
capitalize on the growing bottle water market which is projected to be worth over $24 million by
2012. Products such as Aquafina, and Propel are well established products and in a position to ride
the upward crest. PepsiCo products such as, Doritos tortilla chips, Cheetos cheese flavoured snacks,
Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Rold
Gold pretzels, Santitas are also benefiting from a growing savoury snack market which is projected
to grow as much as 27% by 2013, representing an increase of $28 million.

THREATS
• Decline in Carbonated Drink Sales - Soft drink sales are projected to decline by as much as 2.7%
by 2012, down $ 63,459 million in value. PepsiCo is in the process of diversification, but is likely
to feel the impact of the projected decline.
• Potential Negative Impact of Government Regulations - It is anticipated that government
initiatives related to environmental, health and safety may have the potential to negatively impact
PepsiCo. For example, manufacturing, marketing, and distribution of food products may be altered
as a result of state, federal or local dictates. Preliminary studies on acryl amide seem to suggest that
it may cause cancer in laboratory animals when consumed in significant amounts. If the company
has to comply with a related regulation and add warning labels or place warnings in certain locations
where its products are sold, a negative impact may result for PepsiCo.
• Intense Competition - The Coca-Cola Company is PepsiCo’s primary competitors. But others
include Nestlé, Groupe DANONE and Kraft Foods. Intense competition may influence pricing,
advertising, sales promotion initiatives undertaken by PepsiCo. Recently Coca-Cola passed
PepsiCo in Juice sales.
• Potential Disruption Due to Labour Unrest - Based upon recent history, PepsiCo may be
vulnerable to strikes and other labour disputes. In 2008 a strike in India shut down production for
nearly an entire month. This disrupted both manufacturing and distribution.

18
 TRENDS IN THE SNACKING INDUSTRY
A recent survey by Snack Factory’s Pretzel Crisps® brand reveals that nearly half of
consumers(employed or unemployed), (40 percent) would prefer to reach for snack foods
throughout the day instead of eating the traditional three square meals. Many admit to indulging in
snack foods for lunch (78 percent) and even dinner (55 percent). While snacking may be a habit of
both men and women of all ages, younger generations tend to skip the full course meal and go right
to the snack aisle when they are hungry. In fact, close to half (46 percent) of 18 to 49-year-olds
make snacking a major part of their day as compared to only 31 percent of their 50 and older
counterparts.

Despite the generational gap, more and more people of all ages are relying on snacks to get them
through the day. Whether it’s sweet, salty, crunchy or full of flavour, snack foods have become a
staple in the American diet.

"Snacks are not just the snack aisle anymore. When people snack they want to put
something good in their body"

Rethink Your Snack Survey, conducted by Kelton Research, finds that when it comes to snack time,
a majority of Americans (59 percent) prefer to keep it interesting and sample a variety of treats.
However, in the debate between snacks that taste good and snacks that are healthy, America’s taste
buds are guiding their decisions. More than two thirds of the nation (63 percent) would rather eat
a snack that appeals to their senses than their waistlines and nearly the same amount (60 percent)
confess to consuming more than the recommended portion. The good news is that there are plenty
of better-for-you snacks that offer a selection of satisfying flavors without the guilt or the added
weight.

“When it comes to snacking, people want something that tastes good, satisfies their cravings and
doesn’t make them feel guilty for eating it, even if they overindulge a little,” said Perry
Abbenante, Vice President of Marketing for Pretzel Crisps

19
SMART SNACKING

Almost nine in ten (86% customers & consumers take the health content of their snack foods into
consideration. When selecting small bites, calories (55%) and fat (48%) are the top two pieces of
nutritional information customers look for, carbohydrates (31%) are far less important. Those
seeking a healthier snack food, nearly three in four customers (74%) see pretzels as a nutritious
option, placing the diverse twists at the top of the list as one of the healthiest salty treats (28%)
above corn chips (16%), potato chips (6%) and cheese curls (3%).
“Think of our bodies like race cars. As we go through the day we need to refuel. There can be long
hours between meals, so plan to have a ready-to-go healthy snack that keeps the energy level
steady,” said Kathy Kaehler, celebrity trainer, fitness expert and author. “To make the most of
snack time, pair low fat, low calorie snacks like Pretzel Crisps with a little protein rich peanut butter
or my favourite, a scoop of Greek yogurt for a boost of energy.”

A NATION THAT SNACKS

While in the car, sitting at the office or lounging on the couch, seven in ten people
(70%) prefer to Hollywood portrays, most do not rely on indulgent snacks and treats to ease their
pain and tears. In fact, 62% say they snack when they are feeling happy, not sad. When it comes
to parenting, variety can often be the key to keeping children happy. Perhaps that is why more
parents than non-parents (66% vs. 56%) prefer an assortment of go-to snacks instead of sticking
to the usual snack food suspects. The wide snack selection could also be why more parents than
those without children (56% vs. 45%) choose snacks for breakfast.

PERPETUAL SNACKING - SMALL BITES

This trend is coming about due to longer work days, increasing mobility, shorter breaks, etc. There
are now 7 to 10 meal occasions per day, eating is no longer relegated to the traditional meal
occasions of breakfast, lunch and dinner. Food & beverage trend watchers are seeing many more.
Example; "On a given day a busy Mom might start the morning with a Grab n Go snack while
driving the kids to school (early morning) and then come home and feed a younger child (late
morning). Other scenarios might include a student who has dinner and then is studying late into the
night and will fit in another late night meal prior to going to bed."
Starbucks Petites are small bites… Cake Pops, mini Cupcakes, Whoopie Pies and Sweet Squares.
All Petites appear to be doing very well and it is win-win for everyone. For the consumer, they can
indulge in perpetual snacking. The smaller portion Petites help the consumer eat better with fewer
regrets. According to Joy, for Starbucks, the Petites line has a better margin".
Given, consumer's dependence on snacks as alternatives to meals, the nutritional value of snacks is
being revolutionized, and the change is manifested in the form of energy and nutrition bars, proteins
packed cereal crisps, low fat and trans-fat free products. As a result, snack foods are shedding their
unhealthy images, thanks to the aggressive promotional efforts of food companies. Nutritional
snacks with their attractive health profiles are today vying for the share of meal substitutes and
health foods. Multiple meal occasions present a challenge to food & beverage brands in terms of
defining categories and fitting products into these categories.
Example: Once a food category consumed as part of a more traditional main meal, appetizers are
now being consumed on their own, which fits into the new categories of Portion-able Meals and
Smaller Bites.
20
munch in peace and quiet, making snack time a solo activity. When reaching for a snack, most of
the nation (57%) reaches for salty treats over sweet indulgences and despite what

INDIAN SNACKS INDUSTRY: SIZE AND TRENDS

Munching between two meals or at tea /coffee time is a habit with most Indians. The variety of
snacks offered is almost mind-boggling with specialties from all regions, which have gained
national acceptance. For example, banana chips from Kerala are sold not only across the country,
but the entire world. Potato wafer is no longer considered a wafer-thin business. According to an
APEDA (Agricultural and Processed Food Products Export Development Authority) survey, there
are about 1,000 snacks items and 300 types of savouries sold in the country. Salty snacks – whether
potato chips, banana chips or crispier made of corn or wheat flour, just fried or baked for the health-
conscious – today have usurped home-made savouries to become the first choice not just for people
in the big cities but also in small-town India. No wonder then, the market today for branded chips
and wafers alone stands at Rs.1, 100 crore. It has grown more than 60% over the last six years. And
it is by far the single biggest item in the snacks and savoury category.

The snacks food industry in India can broadly be categorized into three segments – staple (biscuits
category), traditional (namkeens) and ready-to-eat packaged snacks (chips / crisps). The RTE
snacks food is slowly but surely coming into its own, with a number of new / high profile entrants
joining the fray. As consumers and companies turn experimental, as reflected in the new variety of
snacks available in the market, extruded snacks which include the likes of PepsiCo India’s Kurkure
will soon overtake potato chips as the biggest snack item in the Indian market. Extruded snacks are
snacks cooked, pressurized and pushed out of a die that gives them their unique shape. According
to a report by consultancy firm KPMG, the market value for extruded snacks which in 2009 stood
at $223.7 million will touch $298.7 million by 2011. Not just that, it will be growing the fastest in
the next five years.

While Haldiram’s, one of India’s oldest traditional snacks makers, and PepsiCo with its Lays and
Kurkure brands dominate the market, the last five years have seen more companies join the fray.
Not so long ago, the unorganized players had a field day with the consumer opting for quantity over

21
quality. The trend is slowly changing with rising incomes and health consciousness. Brand
consciousness is taking precedence over cost consciousness among a large section of consumers.

To PepsiCo goes the credit of expanding the organised snacks market. Till 1995, when
PepsiCo introduced two brands Lays and Cheetos, there were only Haldiram’s and Amrit
Agro that launched potato chips under the brand name Uncle Chips. When PepsiCo launched
Kurkure in 1999, it became a runaway success. In 2000, Frito Lay India, a division of
PepsiCo India, acquired the Uncle Chips brand. And from then on there was no looking back. Aliva,
the latest in its kitty, marks Frito Lay India’s creation of yet another category – borrowing
ingredients and textures from biscuits and flavours from namkeens and is positioned as a healthier
snacking option.

The next big leap happened in 2007, when fast moving consumer goods company ITC launched an
array of potato chips and finger snacks products under the brand name Bingo! Within a year, it
grabbed a market share of 9%. Bingo brought tastes which were familiar to the Indian taste buds
but with a hint of unfamiliarity. The next innovation in the market came in lesser time. Parle Agro’s
Hippo and Parle Products’ Smart Chips entered the market in 2009. Currently, the salty snacks
market stands at around Rs.7, 000 crore. It is the high pace of growth that has attracted a lot of
players. The increase in competition has seen players launching their own versions of the popular
snacks of their rivals.

Consumers now want variety and new tastes. They are not loyal to any particular brand. Another
factor that has worked towards the shift from the home-made snacks to the branded packs is the
price. It is challenging to give quality and quantity at the price points of Rs.5 and Rs.10. The bulk
of the consumers are in the middle and lower middle classes. Therefore, affordability is what has
driven the upsurge in the demand for snacks.

Even as there has been a proliferation of brands in the salty snacks category, there has been a gradual
shift towards offering healthier snacking options. Whether it is the no trans-fat tag or healthier
snacks like Smart Chips or Aliva, consumers are looking for healthier alternatives in every food
category. “What is driving innovation in the segment is the need to balance taste and health without
compromising on one or the other and break this credit-debit lifestyle we live every day,” says
Deepika Warrier, marketing director, Frito Lay India, PepsiCo.

Several manufacturers are putting new face on snacks. One is appropriately named Sensible
Portions that presents a wide range of “better-for-you” snacks including “all-natural” choices such
as multigrain crisps, pita crackers and pita chips. In addition to convenient packaging that gives
built-in portion control, ingredients like whole grains, soya protein, vitamins, iron, and fibre are
included and trans-fats, saturated fats and cholesterol are avoided. It provides a healthier feel to
snacking that is highly marketable.

Use of nuts in healthy snacks continued to rise including staples like almonds and cashews as well
as exotics like pistachios and hazelnuts. Skinless almonds and cashews are roasted with real herbs
and spices for extraordinary flavour. One line of almonds has been released with low-sodium sea
salt, vinegar and bold wasabi soya variants. Another nut company introduced snack nuts that are
gluten-free with all-natural ingredients and some organics like cocoa, vanilla extract and coconut.

22
Peanuts can support and complement a vast range of spices and flavours. Peanut is a canvas upon
which one can display works of art, delivering healthy snacks. Fat in peanuts is also healthy which
can help lower LDL cholesterol and the risk of cardiovascular diseases. It is an excellent source of
protein.

Indeed, Indians continue to show a great appetite for snacks. According to a survey conducted by
electronics payments company VISA on mystery spending or cash spent but which cannot be
accounted by consumers, Indians spend the second highest on snacks. The average mystery
spending per week of young Indians in the age group of 18 to 24 years stood at Rs.383 of which
almost 36% was on snacks. The total spending per year on snacks for one person thus stands at
around Rs.7, 000.

As per data from The AC Nielsen Company, the compounded annual growth rate for snacks in the
rural market over the last two years stood at 26.7% as against 13.2% for urban areas. Though rural’s
contribution is only about 33%, it’s growing much faster than the urban markets. The way things
are happening -- better spending power of the people, good knowledge and great exposure better
times are ahead for the snacks industry.

THE EVOLUTION OF FRITO LAY 1965–1980

Upon the formation of PepsiCo, Frito-Lay maintained the same brand and product line; consisting
of Fritos, Lay's, Cheetos, Ruffles, and Rold Gold pretzels. It soon began efforts to expand with the
development of new snack food brands in the 1960s and 1970s, including Doritos (1966), Funyuns
(1969) and Munchos (1971). The most popular new FritoLay product launched during this era was
Doritos, which initially was positioned as a more flavourful tortilla chip. At first the chip was
perceived by consumers as being too bland. In response, the company re-launched Doritos in Taco,

and later Nacho Cheese, flavours. The spicier composition proved successful, and Doritos quickly
became the second most popular Frito-Lay product line, second only to Lay's potato chips.
Frito-Lay faced increased competition in the 1970s, from competing potato chip brands such as
Pringles, launched by Proctor & Gamble in competition with Lay's. Nabisco and Standard Brands
also expanded in the 1970s to produce potato chips, cheese curls and pretzels, which placed added
pressure across Frito-Lay's entire line of snack food brands.

1980–2000
Frito-Lay acquired Grandma's Cookies in 1980, which launched nationwide in the United
States in 1983. In January 1978 Frito-Lay's product development group led by Jack Liczkowski has
completed development of TOSTITOS, authentic Mexican-style tortilla chips. The chips were
round, made of white corn and had this Mexican, slightly soapy flavour. To achieve this taste, it
was discovered that Mexicans after cooking corn with lime, do not wash the corn as well as one
would desire, therefore the resulting stone ground corn masa has higher content of lime and lower
pH. When deep fat frying the formed chips, calcium hydroxide reacts with oil and gives this specific
taste. After successful test marketing in 1979, Tostitos Traditional Flavour and Tostitos Nacho
Cheese Flavour went in 1980 into national distribution in the United States and have reached the
sales of $140 million, making it one of the most successful new products introduction in Frito-Lay
23
history. Tostitos sales grew quickly, and in 1985 it had become Frito-Lay's fifth-largest brand,
generating annual sales of $200 million. Ahead of Tostitos at the time were Doritos, Lay's, Fritos
and Ruffles, each recording annual sales between $250 and $500 million. While Tostitos became a
longterm success, several other new products launched in the 1980s were discontinued after
lacklustre results. In the late 1980s, Frito-Lay acquired Smartfood, a brand of cheeseflavoured
popcorn which it began to distribute across the United States. International sales began to increase
significantly at this time as well, with annual revenues from sales outside of the U.S. and Canada
accounting for $500 million in 1989, contributing to total Frito-Lay sales of $3.5 billion in the same
year.
Several new products were developed internally at Frito-Lay and launched in the 1990s, the most
successful of which was Sun Chips, a multi-grain chip first sold in 1991. Sun Chips, along with
new Baked (instead of fried) variants of Tostitos and Lay's, represented FritoLay's intent to
capitalize on an emerging trend among adults in the U.S., who were displaying a growing
preference for healthier snack alternatives. In 1994, Frito-Lay recorded annual retail sales of nearly
$5 billion, selling 8 billion bags of chips, popcorn and pretzels during that year—outpacing
competitors Eagle (owned by Anheuser-Busch) and Wise (owned by Borden).
Up until the mid-1990s, Frito-Lay was represented in PepsiCo's organizational structure as Frito-
Lay, a single division of PepsiCo. This changed in 1996 when PepsiCo merged its snack food
operations into what was titled the "Frito-Lay Company", made up of two subsequent divisions,
Frito-Lay North America and Frito-Lay International. In 1997, FritoLay acquired the candied
popcorn snack brand Cracker Jack, followed in 1998 by multiple
international acquisitions and joint ventures, including Smith's Snackfood Company (Australia), as
well as Savoy Brands (Latin America).
(2000 – PRESENT)

In the early 1980s, PepsiCo continued to grow its Frito-Lay brands in two ways—through
international expansion and acquisition. Through a joint-venture with Walkers, a U.K. chip and
snack manufacturing company, Frito-Lay increased its distribution presence in Europe. Similar
joint-ventures were arranged in other regions of the world in the 2000s, including Smith's in
Australia, and Sabritas and Gamesa in Mexico. As a result of these international arrangements,
some global Frito-Lay products (such as Doritos) are branded under the same name worldwide.
Others maintain their original name within North and South America, while being branded under
region-specific names in other parts of the world. For example, Lay's chips are branded as Walkers
Crisps in the U.K.
The Quaker Oats Company merged with PepsiCo in 2001, resulting in Quaker snacks products
becoming organized under the Frito-Lay North America operating division. This operating structure
was short-lived, and in 2003, as part of a restructuring, the international operations of Frito-Lay
(formerly Frito-Lay International) were brought within the PepsiCo International division, while
Frito-Lay North America was maintained as its own division, comprising Frito-Lay business within
the United States and Canada.
Frito-Lay introduced Reduced Fat Lay's and Cheetos in 2002. The "Baked" product line also
expanded in 2002 to include Baked Doritos. In 2003, Frito-Lay introduced the first products in its
"Natural" line, which were made with ingredients that had been organically produced. The first of
these included Organic Blue Corn Tostitos, Natural Lay's Potato Chips (seasoned with sea salt),
and Natural Cheetos White Cheddar Puffs.
In 2005, Stacy's Pita Chip Company was acquired, which represented "Frito-Lay's desire to
participate more broadly in the $90 billion macro snack category", particularly involving snack
24
foods made with more natural ingredients. In 2010, Frito-Lay reformulated Lay's Kettle and Lay's
flavoured chips into a new variant labelled as being made with all-natural ingredients. Sales of
Lay's potato chips grew by 8% following the change to all-natural ingredients. As a result, Frito-
Lay announced in 2010 its plans to convert approximately half of all Frito-Lay products,
including Sun Chips, Tostitos, Fritos and Rold Gold pretzels, to allnatural ingredients in 2011.

25
CHAPTER-3

26
 Chapter-3
LITERATURE REVIEW

PepsiCo is one of the oldest, largest and most snack successful food and beverage companies in the
world. PepsiCo was founded by Caleb Bradham in 1902 in USA. Today PepsiCo and its affiliates
operate in more than 140 countries in the world and generate revenues in excess of $ 40 Billion. In
its pursuit of never ending growth and expansion, PepsiCo entered India in 1989 in a joint
Government.

Frito-Lay began in the early 1930s as two separate companies, The Frito Company and H.W. Lay
& Company. The two merged in 1961 to form Frito- Lay, Inc. Four years later, in 1965, Frito-Lay,
Inc. merged with the Pepsi-Cola Company, resulting in the formation of PepsiCo, Inc. Since that
time, Frito-Lay has operated as a wholly owned subsidiary of PepsiCo. As of 2010, Frito-Lay
operates production plants, distribution centers and regional offices in more than 40 countries, with
its Frito-Lay North America headquarters residing in Plano, Texas. Within North America, Frito-
Lay owns (and in some cases, leases) approximately 1,830 distribution centers, warehouses and
offices. The division also maintains 55 production plants. Its President and Chief Executive Officer
is Tom Greco.
PepsiCo maintained its market dominance for many more years to come. However, this advantage
slipped and PepsiCo had to concede the market leadership to Coca Cola India. Several actors
were responsible for this development. But, the most important are; Distribution channel
important role in product because is having positioning we of know an the that distribution
channel is tool by
which we can make reach our product of slums to the final consumers Discontinuation distribution
network by in PepsiCo.The above-mentioned objectives can be achieved planned by carrying
research a proper involving and different types and methods. The data collected for laid the
foundations for the study and gave a platform for the analysis and findings which lead to the
fulfillment of the objectives. The data collected for research is primary and secondary. Primary data
is collected and by observation, questionnaires, interviews. The data collection and analysis paves
way for the recommendation ad conclusion of the study that reveals some important findings
regarding the strategy and corporate structure and strategy of PepsiCo India.
One of the strongest reason PepsiCO retains its brand image is its promotions. PepsiCo targets
mainly youngsters through various Brand ambassadors. In India, the brand ambassadors have
been the best celebrities as well as sports person of the country including Sachin Tendulkar, M S
Dhoni, Amitabh Bacchan, Ranbir Kapoor and others. PepsiCo uses all the media channels for its
promotions. Along with ATL, Pepsi is also present in BTL marketing. Furthermore, along with
traditional media channels, Pepsi also uses trade promotions and sales promotions at point of
purchase. Discounts and packaging are always being bundled to give the best combination and
value to the customer to increase purchases as well as the brand equity. The bottom line is that
PepsiCO cannot exist without the proper promotions. This is because Pepsi belongs in the FMCG
market, and in FMCG, you either perform or perish. The FMCG market is one of the toughest
market for businesses. However, Pepsi is not only surviving, but it is thriving in the FMCG
market. The focus, as is clearly evident, is on the product with the youth as its targetsegment. The
company however failed to maintain the trend and leverage it. Instead of moving on to a complete
emotional appeal platform, the company decided on a product based promotion campaign.

27
“These traditionally have been niche markets dominated by small players and regional brands,”
said Harry Balzer, the chief food industry analyst at the NPD Group, a research firm. “That leaves
a lot of room for a mass player like Frito-Lay to come in and gain market share.”

In the past, Frito-Lay might have pushed new products using its “direct store distribution” system,
which relies on Frito-Lay truck drivers to deliver products directly to stores. Since Frito-Lay has
the backing of a large multinational, and it can use its strengths (like global manufacturing and a
big research budget) to capture local markets' imagination fast. The overall macro snacking
category is probably growing somewhere in the 3% to 4% (range), and the reason Frito does as
well as it does is because it takes occasions from all other macro snacking categories,” Ms. Nooyi
said during a Feb. 10 earnings call with financial analysts. “Frito is able to go after crackers, able
to go after sweet occasions through interesting products that comes from a salty heritage. We
have a frying platform, we have a baking platform, different sort of baking platforms. And we
leverage those platforms to go after all of those occasions.”

In June 2009, Lay’s launched its new positioning platform: ‘Lay’s – Be a Little Dillogical’. The
new Dillogical concept makes an instant connect with youth caught between the desire to succeed
and the desire to remain engaged with certain moments that offer a deep emotional fulfilment.
This friction is like a game between the heart and the head, a struggle between what you want to
do and what you have to do. It’s all about making things that matter to the heart, happen.The new
platform has been launched with a series of ads built around the universal consumer struggle
between what the mind asks one to do and what the heart desires. A powerful 360-degree
approach supports the new TVC, and has indeed prompted consumers to be a little Dillogical.We
have an expansive distribution network across India through which we reach out to more than
2million outlets. However, there is a long way to go, given that the FMCG retail universe is about
8 million outlets. We are aggressively working to expand outreach, especially in rural areas that
have been a key growth driver for us during the last three years. As part of these strategic
initiative, PepsiCo will work with its partners to deploy a new technology designed to enhance
service to retail customers and increase efficiency go across to market system
As growth slows down and intense competition emerges from regional brands in potato chips,
PepsiCo and ITCBSE -0.57 % are shifting their focus more towards newer and healthier forms of
was enthused by the product's initial response and hoped to capture 20% share by the end of this
fiscal.
(Times of India)
Prataap Snacks has come a long way from the narrow by lanes of Indore. What began as a small-
town venture has now evolved into India’s fifth-largest salty snack maker in terms of market
share, according to data from Euromonitor. Some of its most popular products come under its
Yellow Diamond brand: potato chips, the Motu Patlu rings, and tangy snack Chulbule. Loyal
customers have helped turn Prataap into a national snacking brand and a name to reckon with in
India’s Rs19,000-crore salty snack market. The company clocked a turnover of Rs757 crore and a
profit of Rs20.8 crore for the year ended March 31, 2016. The icing came when in 2016,
Bollywood star Salman Khan agreed to endorse its chips.

“It is then that we realised that there was potential; we should do something bigger,” 47-
year-old Kumat, now the managing director and CEO of Prataap Snacks, told Quartz”

28
CHAPTER-4

29
 Chapter-4
ANALYSIS AND FINDINGS
SALES AND DISTRIBUTION PROCESS

There are steps involved :

➢ Gate Meeting
➢ Ware house working
➢ Market working
➢ Execution Pic
➢ Numeric Distribution and Weightage Distribution

 Gate Meeting: the decision point, at which a group of mangers who serve as advisor
,deceision makers and research allocator whose job is to guide and resolve all the issues
faced by the sales team.

 Warehouse Workng: Warehouse workers operate under the supervision of a manager or

team leader and are primarily responsible for receiving, sorting, storing, taking inventory,
keeping records and organizing for the shipping of merchandise stored in the warehouse.

30
 Market working: The market working basically involves 8 steps i.e

PREPARATION

GREET THE CUSTOMER STORE CHECK

MERCHANDISE

DETERMINE THE ORDER

PRESENTATION

Curbside debrief

Administration

 Execution Photos: Execution is said to be as advertisement through banner and

posterwhich is fixed or placed at the outlets.

31
  Numeric Distribution and Weightage Distribution

Numeric Distribution:- It means one time distribution or single distribution for a single outlet
which is used to focus on ECO for that particular outlet.

Weightage Distribution: It signifies multiple distribution for a single outlet. The benefit of
weightage distribution is that it focuses on increase in volume sales of the company.

COMPETITION

WAYFERS AND NAMKEEN OATS

1. BINGO 1. SAFFOLA
2. YELLOW DIAMOND 2. KELLOGGS
3. BALAJI
4. AKASH
5. CRAXX

32
DATA ANALYSIS
➢ Location

➢ Sales Turnover per Month

➢ Which Pepsico product do you sell ?

33
 ➢ Do you sell pepsico products

Analysis on 5-point scale

1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree 5-Strongly Agree

34
35
36
37
38
39
FINDINGS
➢ It is observed that retailers are more preferred to the different brands
the percentages of preference of both brands are approx50%.

➢ It is observed that more retailers are maintaining the all the basic SKU
products of PepsiCo.

➢ It is observed that most of the retailers are maintaining 5 to 8 strips of

PepsiCo.

➢ It is observed that few customer prefer quantity which is been provided

by the competitors like Akash and Balaji.
➢ It is observed that the more numbers of retailers are miss using the rack
which are provided by the PepsiCo by keeping other brand chips and
other miscellaneous products.

➢ It is observed that each outlet has a per week visit for order.

40
CHAPTER-5

41
 CHAPTER-5
SUGGESTIONS & CONCLUSION

Suggestions:

➢ With the distributors, prepare a logistics and delivery plan, also keeping in mind sudden
and urgent orders. A logistics plan will help in timely deliveries.
➢ Creating a standard procedure (& checklist) for recruitment of a new salesman and strict
rules and regulations to be followed by all the salesmen.
➢ Making it compulsory to report to the distributor point at the end of each working day and
pass over the whole day's working to the distributor (order and progress). This helps in
inducing a certain amount of discipline and control over the work force.
➢ Creating a standard procedure for selection of distributor.
➢ Moreover, making it mandatory for the senior officials to meet the distributor at regular
intervals and the distributor needs to submit certain reports to the company. Reports like
primary and secondary business report, Stock, Expiry stock, progress report, SKU
progress report, Flavour report, salesmen report, etc.
➢ Such reports will help the senior officials in understanding the market in a better way and
help them in forecasting, planning, firing,marketing,etc.Anadded benefit would be that the
distributor would be disciplined and automatically answerable to the company.
➢ Provide with anti-rodent racks to potential customers, of course with a minimum opening
order.
➢ Developing an automatic ordering system for repeat orders.
➢ If not the 7th option, then sending out the delivery van along with the salesman. Delivery
given right at the time of order.
➢ Proper training for CEs, salesmen and distributor and also a product test.
➢ Schemes for retailers. A display to be placed at their shop and they will get some cash for
keeping the ad. This cash would cover up for lesser margin. Another scheme can be like
free packets or point system.
➢ Keep certain running flavours as perennial and making other flavours a seasonal affair.

42
 EXAMPLE
➢ Lays flavours like American Style Cream and Onion, Classic Salted and Magic Masala are the fast
moving ones. So this flavours will be year round.
➢ Other flavours like Hot n Sweet, Spanish Tomato, IPL Season, etc. should be made a seasonal
affair. This flavours should be used as a seasonal attraction, to keep things new and running.
➢ May be popularising a concept like LAYS Calendar can be a good idea. Lays Calendar means,
January, February and March are the Hot n Sweet Months, April and May IPL Season and so on.
➢ The pizza industry is gaining momentum in India. So, may be tying up with Pizza Hut, only for
home deliveries, to give out Lays and Kurkure SKUs for free or instead of change.

CONCLUSION

 Thus, the Competition of PepsiCo product is the tactical point of the sale and under

short term incentive the retailers can increase the sales.

 Competition was high among other brands so we need to providing best services

and required amount of offers to the retailer will give a good increase in sale.

 Proper use of advertisement by banner or poster /danglers of new product give rise

to awareness of customer.

 Rack, displays and schemes influences on outlet owners as it motivates to them to

sales more Pepsi product.

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 Chapter-5
BIBLIOGRAPHY

Primary Source:

1. Observation
2. Q&A with retailers
3. Q&A with consumers at random
4. Q&A with sales rep. of other companies.

Secondary Source:

➢ http://www.pepsicoindia.co.in/brands
➢ http://www.pepsicoindia.co.in/brands/lays.html
➢ http://www.prnewswire.com/news-releases/the-pepsico-foundation-contributes-50000-
tothe-national-association-of-hispanic-journalists-nahj-scholarships-and-internships-
program164730736.html
➢ http://biz.yahoo.com/ic/11/11166.html
➢ http://money.cnn.com/2008/02/18/news/companies/morris_nooyi.fortune/index.htm?po
st version=2008021904:
➢ http://www.marketwatch.com/story/pepsico-pulls-gatorade-fit-line-over-poor-sales-
201208-10?reflink=MW_news_stmp
➢ http://www.moneycontrol.com/news/wire-news/pepsico-reaches-deal-to-
selldrinksmyanmar_742919.html
➢ http://247wallst.com/2010/12/02/pepsi-acquisition-of-wbd-goes-much-deeper-into-
russiapep-wbd/
➢ http://www.pepsico-ivi.gr/versions/eng/page.aspx?itemID=SPG18
➢ http://inventors.about.com/library/inventors/blpepsi.htm

PRINT:
1. Book on Strategic Management by; Mr. Mani Kutti Robert A. Hitt
2. National Sunflower Association; Dynamics of the Snack Food Industry by Sally Lyons
Wyatt
3. Economic Times

4. Marketing Management by Mr. Philip Kotler.

44
 PEPSICO INDIA HOLDINGS PVT LTD
Note: Please tick mark in the square which apply to you.
General (This information will be kept confidential).
1. Name: _______________________________________________________________
2. Address: _____________________________________________________________
3. Location:
a) Main road side b) Nearer to chowk c) Heavy traffic area d) Outskirt to city
4. Sales Turnover per month:
a) Less than 1 Lac b) 1-5 Lac c)5-10 Lac d)More than 10 Lac
5. Store Size:
a) Less than 100sqf b)100-500sqf c)500-1000sqf d)1000-5000sqf e) More than 5000sqf
6. Which snacks do you sell?
(a) lays (b) kurkure
(c) bingo (d) diamond
(e) Any other(Specify) _______________
7. Do you sell PepsiCo products?
(a) Yes (b) No
8. Which PepsiCo product do you sell?
a)______________b)____________c)_______________d)________________e)_____________
9. Answer the following questions by using the 5-point scale.
1-Strongly disagree 2-Disagree 3-Neither Nor 4-Agree 5-Strongly Agree
a) Most of the people like PepsiCo products. Score
b) The commission on the PepsiCo product is more.
c) The company has highest varieties in terms of variants.
d) The company has highest varieties in terms of sizes.
e) PepsiCo products are less cost.
f) As per the customer PepsiCo has better brand value.
g) It is available in most of the retail outlets.
h) The company has great support in advertisements.
i) The company is giving frequent discount and commission to retailers.
j) Company sales persons are great in support.
k) Most of the children like the product.
l) PepsiCo packaging is good and less damaged items.
m) This company product will remain more days in good conditions.
n) Lead time (Gap between the day of order and day of receive) is less.
o) Company
p) Distribution channel credit facilities for PepsiCo product are good.
q) Frequent offers to customers enhance our sales.

10. Suggestion if any:

_________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________
_________________

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