A SUMMER TRAINING REPORT

ON
SALES PROMOTION
OF

IN
(OKHLA ,NEW DELHI)

Submitted towards The Partial Fulfillment of the

requirement of MBA degree, Session 2009-11

SUBMITTED TO SUBMITTED
BY
DIRECTOR RBMI NITIN KUMAR
(DIRECTOR) MBA (3rd Sem)
Roll No.0921170056

RAKSHPAL BAHADUR MANAGEMENT INSTITUTE

GREATER NOIDA
 DECLARATION

I,NITIN KUMAR the student of RAKSHAPAL BAHADUR MANAGEMENT

INSTITUTE, GREATER NOIDA (U.P) .Hereby declare that the facts and figures
presented in the report are true to the best of my knowledge and belief and are devoid
from any imaginative presentation. This project report entitled submitted by us to
Dr.V.K.Bhatia

NITIN KUMAR

2
 ACKNOWLEDEMENT

I wish to record my deep sense of Gratitude to RAKSHAPAL BAHADUR

MANAGEMENT INSTITUTE, GREATER NOIDA (U.P) for arranging my summer
training of Pepsi and showing me the best path to achieve my level best.

I convey my sincere thanks to Dir. RBMI industry Guide, Mr. Shard Vatss (MDM),
Mr. Soumitro Patnaik, Mr.Rajesh (M.E) Varun Beverage, Noida for providing me
the proper guidance for providing me the opportunity to carry out my summer training
project effectively and efficiently. I would also like to pay thanks to all my classmates
and friends and my family members for co-operating with me and helping me to
complete the project.

NITIN KUMAR

3
 PREFACE
Summer training project is necessary part for fulfillment of MBA course. The
emphasis in the project is providing the study and an insight into Indian FMCG Business
Scenario.

The Summer training project is designed to provide participation of MBA

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

I undertook my Project in Varun Beverages, a leading Bottler and Marketing

partner of the Pepsi Foods. During the training, I had worked on the project “Sales
Promotion of PEPSI in OKHLA New Delhi.”

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

NITIN KUMAR

4
 CONTENTS

CERTIFICATE
DECLARATION
ACKNOWLEDGE
PREFACE
 EXECUTIVE SUMMARY 7
 COMPANY PROFILE 8

 PRODUCTS PROFILE 20

 CREDENTIALS 39
 OBJECTIVES 43
 MEANING OF SALES PROMOTION 47
 RESEARCH DESIGN 50
 RESEARCH METHODOLOGY 53
 FINDINGS & OBSERVATIONS 75
 ANALYSIS 79
 RECOMMANDATIONS 86
 LIMITATIONS 90
 MAIN KEY POINTS 92
 CONCLUSIONS 95
 BIBLIOGRAPHY 98
 QUESTIONNAIRE 100

5
Executiv
e
Summar
y
6
 EXECUTIVE SUMMARY

The distribution network of PEPSI is well known for its efficiency but company

constantly strives for the betterment of their distribution network system. Emphasis of

our study was to focus on the customer of company i.e., the retailers.

The Retail Mapping of NOIDA CITY is an integral step for the assessment, development

and betterment of this system. The distribution system not only comprises the movement

of the products but also incorporates the merchandising of the product, which is very

broad in its purview.

The project incorporates the analysis of the performance of PEPSI and probing into

opportunities of increasing the market share in NOIDA CITY. The entire process had to

be in an organized manner in order to deliver meaningful results for the purpose of

decision-making. The project was that of market research with surveys and observations

as its major phases with the objective of gathering of all important information material

for strengthening the position of PEPSI in NOIDA CITY.

PEPSI boasts of having the maximum market share in the beverage segment in NOIDA

CITY and is in constant process for the betterment of its product performance and

customer as well retailer’s satisfaction.

7
Compan
y Profile

8
 THE COMPANY PROFILE: PEPSI CO.

Caleb Bradham a New Bern N.C druggist who formulated Pepsi Cola founded

Pepsi Cola Beverage business at turn of the century. Pepsi Cola Company now produces

and markets nearly 200 refreshment beverages to retail, restaurants and food service

customers in more then 190 countries and territories around the world and generates

revenue of over 18 billion dollars PepsiCo World Headquarters is located in Purchase,

New York.

Pepsi Co. is the world leader in the food chain business. It consists of many

companies amongst which the prominent ones are Pepsi Cola, Frito-lay, Pepsi food

international, Pizza-hut, KFC and Taco bell. The group is presently into three most

profitable businesses namely, Beverages Snacks foods and Restaurants.

The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and

other brands worldwide and 7UP outside the U.S.market. They are positioned in close

competition with Coca Cola inc. of USA.

The Snacks food divisions manufacture and distribute and markets others snacks

worldwide.

9
 The restaurant segment primarily consists of the operations of the worldwide

Pizza-Hut, Taco bell and KFC chains PFS, PepsiCo’s restaurant distribution operation,

supplies to Company owned and Franchise restaurants in the U.S.

When Coca Cola changed its formula in 1985, Pepsi Stepped up its competition

with its long time archrival claiming victory in the Cola-wars. Coke and Pepsi expended

their rivalry to tea in 1991 when Pepsi formed a venture with No.1 Lipton in response to

Coke’s announced venture with Nestle (Nestea).

“Pepsi Co is going blue”. This was the new color adopted by the company to

strengthen its brand globally. Also the company is changed colors from Generation X to

GENERATION NEXT.

Although Pepsi holdings over the years have become diverse in such fields as the

Snacks industry and Restaurants industry, this portfolio will discuss its core business and

its highly successful business of Beverages. The soft drink industry customer base is

probably the widest and deepest base in a world that is flooded with some many

categories. According to Beverage Digest the customer base for soft drinks is a

whopping 95% of regular users in the United States. This represents a large field of

potential customers for Pepsi Cola.

10
 Pepsi prefers to segment itself as the beverage choice of the “New

Generation”, “Generation Next”, or just as the “Pepsi Generation”. These terms

adopted in Pepsi’s advertising campaigns are referring to the markets that marketers refer

to as Generation X. The Generation X consumer is profiled to be between the ages of 18

to 29. They have high expectations in life and are very mobile and active. They adopt a

lifestyle of living for today and not worrying about long-term goals. Those Pepsi’s main

emphasis on this segment they also have a focus on the 12 to 18 year old market. Pepsi

believes if they can get this market to adopt their product then they could establish a

loyal customer for life.

Pepsi Cola throughout its 100 years of existence has developed much strength.

One of the strengths that has developed Pepsi into such a large corporation is a strong

franchise system. The strong franchise system was the backbone of success along with a

great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring

Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of

1997.

Pepsi also has the luxury to spend 225 million dollars in advertising a year. This

enormous ad budget allows Pepsi to reinforce their products with reminder advertising

and promotions. This large budget also allows Pepsi to introduce new products and very

quickly make the consumer become aware of their new products.

Pepsi also has had the good fortune of making very wise investments. Some of

the best investments have been in their acquiring several large fast food restaurants. They

have also made wise investments in snack food companies like Frito Lay, which at

11
present time is the largest snack company in the world. Probably high on the list of

strengths is Pepsi’s beverage line up.

Pepsi has four soft drinks in the top ten beverages in the world. These brands are Pepsi,

Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Some other strong brands

are All Sport, Slice, Tropicana, Starbucks, Aquafina and a license agreement with Ocean

Spray Juices.

12
ENTRY OF PEPSICO

IN INDIA

13
ENTRY OF PEPSICO IN INDIA

In 1977, a change in the government at the center led to the exit of coca-cola which

preferred to quit rather to dilute its equity to 40% in compliance with the Foreign

Exchange Regulations Act (FERA).

The beginning of 1980’s saw the birth of another cola drink “Thums Up” the Gold Spot

people launched it in 1978-79 as “Refreshing Cola”; in 1978 Parle led the Indian soft

drinks market (share33%) with its Gold Spot and Limca brands. In 1987 pure drinks

share came down to21% as a result of growing popularity of Limca and Thums Up. At

the same time the threat to the Indian soft drinks market was that of fruit drinks.

In 1988, fruit drinks market was valued at Rs. 40 crores and was growing at the rate

0/20%. In early 1985, the government rejected a proposal with the R.P Goenka Group.

This involved the export of fruit juice concentrated from Punjab in return for the import

of Cola-Concentrates. The deal offered was 3:1 export-import ratio in return for being

allowed to market Pepsi in India. The Rs.22 crores Pepsi Co project/package was the

second bed by the U.S. headquarters MNC to inter India. Pepsi Co would have an equity

holding of 39%, Punjab Agro Industries Corporation (PAIC) 20% and Voltas 24%. The

14
bad to be financed privately from loans. A. project approval board was finally set in

February 1988.

Pepsi’s shares which have been originally just under 40% was whittled to about 35% and

PAIC’S share was hiked to 40% these were mainly the issue in which COKE had left

India in 1977. Thus Pepsi not only accepted the conditions but also went much further.

Now the victory for Pepsi who after more than 5 years of acrimonious battle was

launched in June 1990 selectively in Rajasthan, Punjab, Uttar Pradesh and South as

“SAHAR-PEPSI”.

In 1991, saw a major launch of 7Up and Mirinda in India, which was warmly received by

Indian customers & consumers. 1993 was new beginning for fountain Pepsi (PMX).

Pepsi achieved the no.1position in India. In 1996 Mirinda attained no. 1 position in

orange beverages category.

May 1998 saw major launch of Mirinda lemon in India around 70% of the total sales

came from established markets of North America.

Pepsi has major branch namely:

Pepsi: Diet-Pepsi; Mountain Dew

7-UP: Slice and Miranda (orange.& lemon)

15
Mr. Ramesh Vengal was the first Managing Director who was here till April 1992. Mr.

Suman Sinha the current

President took over from him after a long inning with Hindustan. Lever Ltd. (HLL)

During these years the beverages business has grown rapidly from 3 million cases to 60

million cases and is paced for annually through 7,50,000 retail outlet across the country.

It generates annual sales of approximately Rs.2, 500 Crores (which includes exports of

Rs. 300crore) and a presence in the nascent juice market with Tropicana (sales, Rs. 50

crore).

PEPSICO INDIA

 Pepsi is one of the most well known brands in the world today available in over

160 countries. The company has an extremely positive outlook for India.

“Outside North America two of our largest and fastest growing businesses are in

India and China, which include more than of the world’s population.” (PepsiCo’s

annual report, 1999)

 This reflects that India holds a central position in pepsi’s corporate strategy. India

is a key market for PepsiCo and at the same time the company has added value to

Indian agriculture and industry. PepsiCo entered India in 1989 and is

concentrating in three focus areas- Soft drink concentrate snack foods and

vegetable and food processing.

16
  Faced with the existing policy framework at the time, the company entered the

India market through a joint venture with Voltas and Punjab Agro Industries.

With the introduction of the labialisation policies since 1991, Pepsi took complete

control f its operations. The government has approved more than Us$ 400 million

worth of investments of which over US$ 330 million have already flown in.

 One of PepsiCo’s key strategies was to develop a completely local management

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

own 21. The company has set up 8 Greenfield sites in backward regions of

different states. PepsiCo intends to expand its operations and is planning an

investment of approximately US$ 150 million in the next two-three years.

Introduction

With a legacy of decades in the industrial arena. The Jaipuria Group of Companies now

stands at the one thousand five hundred Crore mark. The group boasts of its several

world-class business arenas like those of Textiles, Bottling. Education, information

technology, food chain and Retailing, apart from numerous other business segments.

Jaipuria Group is a Rs. 1500 Crore, family controlled, reputed business house with over a

century of operations in diversified fields.

The group as on today can boast of expertise and leadership in the fields of food and

beverages, textiles and real estate development with varied interests in a wide range of

products and services.

17
The Jaipuria Group under the leadership of the three brothers SK Jaipuria, RK Jaipuria

and CK Jaipuria has today become one of the leading business houses of the country.

The following are the major areas of operations of the Jaipuria Group:

• Food and Beverages

• Textiles

• Information Technology

• Real Estate

• Education

Presence of Jaipuria Group in India:

Offices & Plants: 1. New Delhi 2. Mumbai 3. Kolkata 4. Chennai 5. Hyderabad 6. Agra

7. Guwahati 8. Chandigarh 9. Lucknow 10. Varanasi 11. Patna 12. Jaipur 13. Indore 14.

Bhopal 15. Gwalior 16. Vishakhapattanam 17. Udaipur 18. Goa 19. Dharwad 20.

Jamshedpur 21. Noida 22. Cuttack

Jaipuria With Pepsi

18
The Jaipuria Group, since 1975 has been a renowned and reputed name in the field of

soft drink bottling. Since its foray into this field the Group has bottled almost all the

major soft drink brands that existed in India like Coca Cola. Thumsup, Limca and Pepsi

etc.

Today the Jaipuria Group commands almost 60% of the Pepsi business in India. With an

impressive turnover and plants equipped with the latest technology the Jaipuria Group

can boast of being the biggest name in the country when it comes to soft drink

manufacturing.

The Group has major presence in most part of the country, with its 22 fully operational

plants running successfully across the country.

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25

billion and over 142,000 employees. The company consists of the snack businesses of

Frito-Lay North America, Gatorade/Tropicana North America and Frito-Lay

international; the beverage businesses of Pepsi-Cola and PepsiCo Beverages

International and Quaker Foods North America, manufacturer and marketer of ready-to-

eat cereals and other food products. PepsiCo brands are available in nearly 200 countries

and territories.

Many of PepsiCo’s brand names are Voer 100-years-old, but the corporation is relatively

young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay

Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,

including Gatorade, in 2001.

19
PepsiCo’s success is the result of superior products, high standards of performance,

distinctive competitive strategies and the high integrity of our people.

Product
Profile
20
PRODUCT POSITIONING OF PEPSI CO.

Pepsi prefers to position itself as the beverage choice of the “New Generation”,

“Generation Next”, or just as the “Pepsi Generation”.

These terms adopted in Pepsi’s advertising campaigns are referring to the markets

that marketers refer to as Generation X. The Generation X consumer is profiled to be

between the ages of 18 to 29. They have high expectations in life and are very mobile

and active. They adopt a lifestyle of living for today and not worrying about long-term

goals. Though Pepsi’s main emphasis is on this segment but they also have a focus on the

12 to 18 year old market.

The rich deep blue coloring represents eternal youthfulness and openness.

Marketing plans like “Yeh Dil Maange More”, “Got Another Pepsi”, “Ye Pyass Hai

Badi” have made Pepsi one of the coolest brands recognized among teens in the top five

and the only beverage product in this category.

21
 STRENGTH & WEAKNESSES OF PEPSI CO.

Pepsi Cola throughout its 100 years of existence has developed much strength.

One of the strengths that have developed Pepsi into such a large corporation is a strong

franchise system. The strong franchise system was the backbone of success along with a

great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring

Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of

1997.

Pepsi also has the luxury to spend 225 million dollars in advertising a year. This

enormous ad budget allows Pepsi to reinforce their products with reminder advertising

and promotions. This large budget also allows Pepsi to introduce new products and very

quickly make the consumer become aware of their new products.

Pepsi-Cola provides advertising, marketing, sales and promotional support to

Pepsi-Cola bottlers and food service customers. This includes some of the world's best-

loved and most-recognized advertising. New advertising and exciting promotions keep

Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to

Pepsi-Cola bottlers. The company also provides fountain beverage products.

22
 Pepsi also has had the good fortune of making very wise investments. Some of

the best investments have been in their acquiring several large fast food restaurants. They

have also made wise investments in snack food companies like Frito Lay, which at

present time is the largest snacks company in the world.

Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has four soft

drinks in the top ten beverages in the world. These brands are Pepsi, Mountain Dew,

Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the No.1 tea in the United

States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana, Starbucks,

Aquafina and a license agreement with Ocean Spray Juices.

Pepsi Cola like any company has weaknesses. Ironically, the one strength that has

been credited for most of its success in the past has now become a weakness for Pepsi.

This former strength is the franchise system. The franchise system in Pepsi Corporate

view has become a liability. Pepsi in today’s market must be able to act as one instead of

several separate units.

The franchise system has become a hurdle to Pepsi because many of these

franchises have become very strong and will not be dictated by PepsiCo on how to

handle their operations. Some of these franchises are unwilling to support certain Pepsi

products and at times produce their own private label products that are in direct

competition with Pepsi products.

23
 Secondly the franchisees are not willing to make capital expenditures to keep up

with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola

at present time does not operate a franchise bottling system).

As mentioned earlier Pepsi has tried to elevate this problem by spinning off their

interest in fast food restaurants but at present time are still guilty by association to many

of the large fountain accounts. The franchise system has also affected fountain sales due

to the fact franchisees are not willing to buy expensive fountain equipment to place in

accounts mainly because the profit margin is so low and could take years to recoup their

investment. Pepsi also has a weakness in the international beverage market.

Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena. Pepsi

has tried to enter this market by trying to do in three years what took Coke 50 years to

do. This area will take years for Pepsi to mature simply due to Coke’s dominance in the

international market and the strong ties that Coke has developed with these markets and

their governments.

Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi

customers buy their products because of taste, price, packaging and promotional factors

and of a wide variety of brands. Pepsi customers also buy their products due to the high

accessibility of Pepsi brands.

24
 Pepsi products are distributed to many outlets. For example, supermarkets where

Pepsi buys large shelf area and display areas so the customer can find them easier, viz,

Convenience stores, Restaurants, Movie theaters and almost and other conceivable spots.

Pepsi has a competitive advantage over Coke because of the image it portrays. Pepsi

promotes itself as the choice of the “New Generation”. Pepsi gets this advantage by

implementing such large marketing projects like “Project Globe”. This marketing plan,

which Pepsi spent 637 million dollars over five years, is to introduce the new rich deep

blue coloring of its packaging. The rich deep blue coloring represents eternal

youthfulness and openness. Marketing plans like this made Pepsi one of the coolest

brands recognized among teens in the top five and the only beverage product in this

category.

Another competitive advantage that Pepsi has is in their product Mountain Dew.

Mountain Dew has grown a staggering 74.1% over the last five years. Mountain Dew has

a 6.3% market share and has recently become the No.4 soft drink in America. At this

current pace Mountain Dew will be come the first non-cola to reach the 1billion gallon

mark in one year.

Pepsi also has an advantage as an innovator in their field. They are the first soft

drink makers to introduce a new one-calorie soda called Pepsi-One with, just approved

by the FDA, Ace-K.

25
This new sweetener is slated to be a break through for diet soda in which it limits the

after taste associated with diet soda and brings a more cola taste to the product. Pepsi has

always been a strong No.2 against Coke and have become one of the world’s largest

Companies. As far as market share is concerned Pepsi stands strong.

26
 PEPSI-THE INDIAN EXPERIENCE

• Pepsi is one of the most well known brands in the world today available in over

160 countries. The company has an extremely positive outlook for India. "Outside

North America two of our largest and fastest growing businesses are in India and

China, which include more than a third of the world’s population." (PepsiCo’s

annual report, 1999)

• This reflects that India holds a central position in Pepsi’s corporate strategy.

India is a key market for PepsiCo, and at the same time the company has added value to

Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in

three focus areas – Soft drink concentrate, Snack foods and Vegetable and Food

processing.

• Faced with the existing policy framework at the time, the company entered the

Indian market through a joint venture with Voltas and Punjab Agro Industries. With the

introduction of the liberalization policies since 1991, Pepsi took complete control of its

operations. The government has approved more than US$ 400 million worth of

investments of which over US$ 330 million have already flown in.

27
 • One of PepsiCo’s key strategies was to develop a completely local management

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

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

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

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

slogan ever used in the in the Indian market. This slogan proved to be the best suited one

for Pepsi and it was a mega hit and at that moment of time.

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

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

passionate Indian team, which has been built over the years. Pepsi is a trendsetter

managed and run by Indians, where important decisions are taken locally.

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

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

Marketing, Distribution and Franchising- covering fruit/vegetable processing, Exports,

Snack Foods & Beverages. In the mean time Pizza Hut and Frito Lay’s are the examples

in this regard only.

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

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

28
 The RKJ group is India's leading supplier of retailer brand Carbonated and Non-

Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its

experience in the beverage industry dates back to the sixties when it had the first

franchise at Agra.

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

M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of

Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal

and is responsible for producing and marketing 44% of Pepsi requirement in India.

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

at the commanding position and in the mean this group has diversified itself into ice

cream, suiting and shirtings, restaurants, beer plant in Mauritius & edible oil plant in Sri

Lanka.

PEPSI – BRANDS AND PACK PROFILE

29
BRAND PACKS:

The products are generally available in three kinds of

packaging:

30
• GLASS BOTTLES

• DISPOSABLE CANS

31
 • PET JARS

FLAVOUR PACKS:

32
COLA (Carbonated Soft Drink):

• PEPSI

ORANGE:

• MIRANDA ORANGE

33
• MOUNTAIN DEW

• 7UP

34
MANGO:

• SLICE MANGO

DRINKING SODA :

• EVERVESS SODA

35
MINERAL WATER:

• AQUAFINA

Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known is one of
the largest FMCG market in the whole world with the total annual sales of around
$40 billion.

36
 THE RKJ GROUP

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

niche for itself. Their services touch different aspects of commercial and civilian domains

like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the

group as on today can lay claim to expertise and leadership in the fields of education, food

and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods

Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined

territories in which brand and technical support was provided by the Principals viz., Pepsi

Foods Limited. The manufacturing facilities were restricted at Agra Plant only.

The group also became the first franchisee for Yum Restaurants International [formerly

PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for

Northern & Eastern India. It has total 27 Pizza Hut Restaurants under its company.

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

the management of Delhi Public School Society.

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

between Indian Promoters and foreign collaborators.

37
 The group added another feather to its cap when the prestigious PepsiCo

“International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year

1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii,

USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in

the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico,

Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of

Pepsi Cola Company.

38
Credenti
als

39
 MAJOR CREDENTIALS

 VARUN BEVERAGES LIMITED RECEIVED “GOLD

STANDARD AWARD” FOR PRODUCTION &

QUALITY CONTROL FOR THE YEAR 1996-1997.

 JAIPURIA GROUP WAS ADJUDGED “BEST

BOTTLER” OUT OF MORE THAN 2000 BOTTLERS
ALL OVER THE WORLD FOR THE YEAR 1996-97.

40
LOCATIONS OF BOTTLING PLANTS OF
PEPSI IN INDIA

42
Objectiv
e

43
 OBJECTIVES OF THE PROJECT

The Project “Distribution Network & Market Share of PEPSI in NOIDA

CITY” was designed on the lines of basic investment decisions to be taken by the

senior officials of PEPSI for the purpose of amendments in the pre-existing

distribution network in order to review and strengthen the routes. The findings of the

project are very crucial for the increment of the market share of PEPSI in the NOIDA

CITY Beverage Market.

Though the process is an ongoing one but the decisions have to be taken on a

strong base, supported by facts and figures and that too on papers. This support can

only be provided with the help of an extensive and through analysis of the market

and the data collected thereof.

The objectives of the project were delivered to us express sly by the

Marketing Development Co-ordinator who was the lead or the project head and we

had to submit the day report to him along with the draft report. He was the in charge

of the project and gave guidelines and directions to approach the project.

44
The objectives of the project are:

 To analyze, interpret and study the entire beverage market of NOIDA CITY

 Comparative study of the various brands, packs and flavors available in the

market.

 Analysis of the strong and weak point of the competitors products and

compare it with PEPSI.

 To assess the reach and feasibility of the product and give the output for

further investment for enhancing the distribution network along with

assessing the efficiency of the current distribution system.

 Assess the promotional measures in the context to the sales of PEPSI and

focusing our study on the customer of company i.e., the retailers.

As obvious that any company is concern with the increase in sales of its

products, our project was in line with the companies’ objectives and all steps

incorporate in the project were directed to give an overview so as to attain its

objectives.

45
 The market research conducted by us was in accordance to the company’s

rules and policies which were quite material for the efficient and effective results and

inferences to be drawn from the entire process.

The market research was conducted in compliance of the given guidelines

delivered to us expressly to achieve the given objectives, which were as under:

1. Profitability 4. Improvement

2. Sales 5. To satisfy the customers

46
MEANING OF SALES
PROMOTION

47
MEANING OF SALES PROMOTION

“Sales promotion, in a specific sense, refers to those sales activities that

supplement both person at selling and advertising and coordinate them and

help to make them effective, such as displays, shown and expositions

demonstration other non-recurrent selling efforts not in the ordinary routine”.-

American marketing Association

FUNCTION OF SALES PROMOTION

1) Low unit cost (2) Effective Sales Support (3) Increased speed of

product acceptance (4) Better control

OBJECTIVES OF SALES PROMOTION

a) To introduce new products

b) To attract new customers

c) To increase current sales

48
d) To improve the public image of them

SALES PROMOTION AT DEALER’S LEVEL (RETAIL STORE)

1) Advertising (2) Store demonstrations (3) Special displays and Shows (5)

Dealer Contest (5) Dealer Premia

Sales Promotion Schemes at Consumer’s Level

1) Coupon (2) Price-off Offer (3) Samples (4) Money Offer (5) Trading

Stamps (6) Buy Truck Allowance (7) Premia

In conclusion it may be stated that sales promotion will be most valuable in

case of commodities for which there is lack of regular brand preference.

49
RESEARCH
DESIGN

50
RESEARCH DESIGN

The research process designed was conclusive and statistical in nature. Which

would enable the company to take rational decision? This is because the sample

size taken was large and the techniques adopted were for mass data. The date

obtained from each locality was tabulated and the results were obtained in from

of percentages.

Data collection sources

I – Primary sources

• Observation – non observation and direct

• Survey- which include various categories of retailers.

• Personal interview

II- Observation

The observation was done by the following meted

• Keeping the markets in view

• Keeping the customers and consumers in view

• Interacting with various group of retailers and consumers

51
 III- Survey

Various retailers and consumer with the help of questionnaire

IV- Personal interviews

This method of date collection involves the interviewers asking question in a face to

face con tact situation there in direct personal investigation and the interview inn

properly structured as it involves the use of set of predetermined questions which are

asked in the form and order pre-decided. This technique is preferred as it is

economical, more informative, non responses are low, spontaneous reaction which

are realistic. Lots of supplementary information comes up.

V- Secondary Data

Secondary data consists of information that already exists some where and may have

collected for a different purpose, it provide a starting point.

To select the localities a map of Noida was used. The list of retailers was
obtained from company officials, designed by company

52
Research
Methodol
ogy

53
 THE MARKET RESEARCH PROCESS

The entire project was divided into five phases and each phase had its

individual significance and supplemented each other. The process had to be started

from the grass root level and it was very important to understand the market for this

FMCG product, which is very fast in production, distribution and consumption.

The five phases into which the project was divided were:

A. Route Riding

B. Retail Tracking

C. Corporate Tracking

D. Analysis of finding and observations

E. Segregating NOIDA CITY for WAP and SAP

The entire process was more of a Descriptive Research type and incorporated

a formal study of the specific problems faced by most FMCG companies an

exploring the opportunities in the untapped market. The survey was conducted on the

basis of PEPSI product preference and evaluation of sales forecast in the new and

underdeveloped market including the evaluation of the advertising and promotional

measures. The data collected had to be systematically arranged, analyzed and

reported in a form congenial to take on the spot decisions.

54
 The observation approach was adopted in the process by gathering the data

essential and material for the decision-making and with clear objective of increasing

the market share of PEPSI in the NOIDA CITY market. Customer preferences and

satisfaction was also important in assessing the market share but that was very clear

that customers generally do not have loyalty towards the product in the Beverage

industry rather what matters the most is the product availability which will be

discussed later.

All the phases mentioned above have been discussed along with the

observations, problems, and other dimensions which have been encountered and

experience in detail in the following pages.

55
 A. ROUTE RIDING :

The Beverage Industry or to be more specific, the Soft Drinks Industry has

one of the most active network in term of its production, supply, distribution,

marketing, consumption and also personal relations at the very second level of its

distribution network. That is the reason why it is sometimes said to be “Very Fast

Moving Consumer Goods”.

Due to the above stated reason it becomes very essential to study and analyze

the market of these products from the grass root level. So in the Soft Drinks

Company as PEPSI, route riding becomes the first and foremost step in any of the

activities to be undertaken be it any official so we were no exceptions.

During the very initial days we were required to exercise Route Riding, the

objective of which was:

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

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

activities of the Route Agents and understand the Beverage market.

56
 • To undertake the comparative study of the various brands and flavour packs

of all existing beverages or soft drinks

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

• To develop innovative ideas to enhance the distribution system.

Route Riding is basically accompanying Pepsi Vans along with the route

agents and understanding the way they conduct merchandising activities right from

the charged vans leave the depot to the entry of empty vans back to the depot. The

Route Riding phase was for the initial twinty days in which we had covered twinty

different routes.

The Route Riding is a crucial phase because the actual dealing with the

retailers and their dealing with the customers can be very efficiently understood

through this process which is important at all levels of decision making in the

industry.

The Routes i.e., the Pepsi Vans were charged and left the depot by 7:30 in the

morning, accompanied by the Route Agent (R.A.’s). The RA’s were given the

route planners and the particulars of the products, flavors, and quantities along with

the billing materials. The vans had to cover the entire route and the RA had to do the

57
merchandising and sales against cash, which was a significant feature of this

industry. The targets were given twice or thrice in a week that was a challenge for

them and after achieving these targets the RA’s was awarded with some special

incentives. As there exists a player like Coca Cola. So it had a lot to do with schemes,

discounts and other incentives.

58
 The routes were allocated on the basis of individual areas and the demand of

the product in that particular area. The RA’s been responsible for the

accomplishment of their sales target on their routes and was given incentives on

achieving the targets. Not only this, the RA’s also had the responsibility of moving

the flavors and packs in proportion along with the proper display of the products for

proper visibility and arrangement of products in brand order along with “VISI

purity”.

The RA’s had the responsibility of setting up Monopoly PEPSI Sales

Counters where no products except that of PEPSI would be available amongst the

soft drinks and especially of Coca Cola. These monopoly sales counters enjoyed

special benefits in terms of discounts, schemes, VISI’s (fridges), display boards, glow

signboards, wall paintings, banners, posters and other incentives.

The RA’s had to achieve their sales target and surrender the daily sales

proceeds with the concerned Customer Executives along with the route planner and

billing materials and gate pass along with the details of sales on their route.

The entire activities of the RA’s was controlled by the Customer Executives,

who also assisted the RA’s in achieving their targets and were in charge of the sales

performance in their assigned areas. A Customer Executive had nine to ten RA’s

under him and was responsible for their performances as well. He was also concerned

59
with the promotional activities on his routes and handling of policy matters in the

corporate regarding supply to industrial canteens and cafeterias.

We as Research trainees were required to study and analyze the activities of the RA’s

and be familiar with the market. We had been provided Market Analysis Sheets by

the MDC in which we were required to record the observations of the retail outlets on

a particular route.

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

• The quantity of the cold and warm stocks of all brands and flavors available

at the outlet along with the outlet details.

• Inquiring about the satisfaction of the retailers in terms of sales of PEPSI

products, schemes, discounts, combo offers, and the benefits of promotional

activities.

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

to product availability of all flavors packs or individual flavors according to

demand of customers, rates billings.

60
 • Inquiring about the behavior and merchandising of RA’s in accordance with

the companies’ regulations and record complaints against RA’s, company or

products, if any.

• Inquire about the performance of various brands and flavors packs and

customer’s response to those brands or flavors and also to educate the

retailers about various schemes and incentives to increase sales volume.

• Last but not the least, assessment of the effectiveness of, assessment of the

effectiveness of promotional materials and activities like, display boards,

glow signs, signage, wall paintings, posters, banners, racks, shelves,

counters, VISI’s, and also impact of nation wide advertising on brand loyalty

by the customers.

The information so collected was required to be filled in the Market Analysis

Sheet (specimen on the next page) and reported to the MDC along with other

information in order of their seriousness.

61
 B. RETAIL MAPPING OF NOIDA CITY:

The Retail Mapping is the integral part of the project and the most crucial is

taking significant decisions regarding the enhancement of the distribution network

involving heavy investment on account of increasing the routes and starting new

routes and promotional measures on those routes to increase its market share in

NOIDA CITY. The new routes, exploring new markets required the decision to be

supported with facts and figures which had to be provided by the Research trainees

on the basis of the survey conducted in the market and processed data there of.

The retail mapping had to be conducted on the basis of the Retail Tracking

Sheet (RTS), which had been developed by the Marketing Development Coordinator

and Customer Executives of the NOIDA CITY unit which incorporated the retail

outlets, their addresses, proprietor, respondent etc and served as a vital database for

all market since then for PEPSI in NOIDA CITY and had to be incorporated in the

project in accordance to the companies policies.

Objectives of Retail Mapping:

62
 • Segregating entire NOIDA CITY for Strong Area Programme and Weak Area

Programme i.e., SAP and WAP.

• Assessment of retailer’s performance.

• Assessment of the level of promotional measures required for increasing

market share of PEPSI.

• Collection of required information for making investment decisions for the

enhancement of existing routes and opportunities for new routes in existing

market as well as exploring new market.

• Classification of all retail outlets in NOIDA CITY into five broad categories

viz, On Route, Non Existence, Non Potential, Reachable and Non

Reachable under the head, Potential Retail Outlets.

The duration for the completion of the Retail mapping took duration of 20

days. The entire survey was guided and directed by the Customer Executive and

Daily report had to be presented to him after assessment and analysis along with

other findings and observations. The Data had to be classified in a systematic manner

and presented in a predefined format, which was further reviewed by the Marketing

Development Coordinator.

63
 The Retail Mapping process incorporated of including of new outlets, which

have been omitted or newly opened, and the product availability on all these outlets.

The major thrust was on segregating the market for Strong Area Programme and

Weak Area Programme.

The Strong Area refers to the routes on which the sales targets are met

without much effort and have continuous demand for the products. These areas are

performing to the standards and are contented with the level of promotion schemes

and other sales boosting measures. The marketing efforts are nominal in these areas

because of the surplus demand and the area of concern is only to ensure the proper

and efficient supply of the products to meet the demand. In the NOIDA CITY market

approximately 32% of the market can be said to be strong areas and these areas

include the well-developed markets as shopping malls, movie theatres, convenios,

hotels, restaurants and bars etc. For these Strong areas, SAP only aims at

maintaining the performance of the product and enhancing the sales volume. It is not

the area of serious concern for the company.

On the contrary the Weak Area refers to those areas or routes, which are

critically low in sales and the targets, are tough to achieve and require aggressive

marketing support. The demand in these areas is fluctuating or rather feeble. The

routes are the area of concern for the company as the demand is very low due to

many reasons and the major one is the existence of the player like Coca Cola in the

market. Other reasons could be poor distribution network, inadequate availability of

64
the products on the outlet, inadequate promotional measures and marketing support,

undeveloped market as that of the interiors etc.

These weak areas had to be identified and the cause of their inferior

performance had to be traced through the Retail Mapping and the company had to be

provided with the facts and figures to take legitimate measure on the basis of the

findings of the deficient performance of the product in these areas. This involved the

aggressive marketing strategy and heavy investment decisions to strengthen these

markets. For this purpose the classification of the outlets into five categories was

very crucial along with the other findings and observations discussed later. These

five heads of classification have been discussed as under.

 ON ROUTE :

It refers to the retail outlets, which are covered by the Route Agents and

visited daily for sales and merchandising. The outlet is visited daily and

actively involved in the sales of all brands and flavor packs of PEPSI.

65
 NON EXISTENCE:

It refers to the outlets which were merchandising the product are no more

in existence, i.e., they have diversified their business activity or have closed.

 NON POTENTIAL:

It refers to those outlets, which are in existence but have very low potential in

terms of sales or are not keenly interested in merchandising the products of

soft drink.

A careful assessment had to be done in case of Non Potential outlets, as they

would turn to be potential in near future. It was also the area of operation of

project to motivate these Non Potential outlets to undertake the

merchandising of PEPSI.

 POTENTIAL OUTLETS :

66
It refers to those outlets, which have the potential for the merchandising of

PEPSI and have the required investment capabilities and can be the

profitable Point Of Purchase of PEPSI by the customers. There were cases

in case of these potential outlets, which were already merchandising

PEPSI, and those, which did not, dealt with beverage products. The

possibilities of setting monopoly counter were very fair at these outlets

and were given special attention. The Potential outlets had to be further

classified in two heads as below:

67
o REACHABLE POTENTIAL OUTLETS :

It refers to those Potential outlet which are reachable i.e., the products

can be made available with the PEPSI vans. The reachability decision

had to be taken in context to the accessibility of the vans at these

outlets.

o NON REACHABLE POTENTIAL OUTLETS :

It refers to those Potential outlets which are not accessible by the

PEPSI vans. These outlets had to be considered because the sales

volume can be increased at these outlets and so alternative method of

distribution and promotional activities have to be evaluated and

worked upon.

68
 C. CORPORATE MAPPING :

NOIDA CITY being an entirely industrial city had huge potential for the sales

of PEPSI in corporates as these concerns had factories, offices and canteens and the

officials and workers base was very strong. The process of Retail Mapping was

followed by the Corporate Mapping, which incorporated of tracing of the

organizations and assessing the market for PEPSI in these areas. Apart from these the

database had to be updated to turn the non-potential market in the corporate into

profitable liaisons for the increment of sales volume.

69
THE OBJECTIVES OF CORPORATE MAPPING WERE:

 Trace the organizations with and without canteens and cafeterias and

estimate the market for PEPSI.

 Estimate the brand preference of PEPSI and COKE in the corporates

and the reasons thereof.

 To review the product performance and satisfaction along with the

expectations of the customers in corporates including PEPSI Dispenser

Equipments.

 To assess the product availability and demand of the product (Traffic)

in these organizations as well as when the product has the optimum

consumption e.g. daily, delegations, meetings, parties, or other occasions

and the customers i.e., whether the officials or workers or both.

 To ensure efficient supply and record any complaints or grievances

thereof.

70
  To assess the promotional measures being adopted by Coca Cola for

tapping these markets and locate the weak points in corporates having

Coca Cola counters to convert them into profitable opportunities.

The Corporate Mapping was the supplementary programme in the project to

boost the sales performance of PEPSI in NOIDA CITY and capture the market share

of its nearest competitor. The analysis and findings were recorded on the format

provide by the company accompanied by the list of findings and observations in

order or their preference and seriousness along with all the relevant details about the

organization. The matters were discussed and analyzed carefully by the MDC.

The corporate matters had to be given a special care as these had huge

potential for the product. The specimen copy of the Corporate Mapping format is

attached for reference. The findings and observations have been discussed in the

coming pages.

71
 D. ANALYSIS OF FINDINGS AND

OBSERVATIONS:

The main objective of the company is to increase the brand preference and

market share so any information material form this point of view had to be take into

account along with the formats provided by the company for predefined information

recording and analysis of those recordings and present the information in an organize

and systematic manner in a condensed form reflecting the actual position of the

market.

The information had to be recorded in the format along with the relevant

information as per the objectives of the research and an analysis of that information

had to be made and present them in an understandable format so that immediate

inferences can be drawn. Generally those information had to be presented in

percentages and the other findings and observations had to be evaluated and a list of

72
findings had to be arranged in order of their seriousness and areas of serious concern

along with the outlet details.

After the analysis sheets and formats have been surrendered to the C.E’s after

analysis by the trainees it was further analyzed and evaluate by him and a brief

analysis was made each day of the daily report. The CE’s further forwarded these

reports after retaining the reference copy, to MDC for further review and reference.

E. SEGREGATION OF NOIDA CITY FOR

SAP AND WAP :

As discussed earlier that the major objective of the Retail Mapping of NOIDA

CITY was to segregate the market for PEPSI for the Strong Area Programme and the

Weak Area Programme. These Programmes have been discussed under the Retail

Mapping Head. The Data and fact collected by the survey had to be analyzed and

presented in a systematic form in order to draw meaningful inferences.

The finding of the Route Riding and the Survey conducted during the Retail

Mapping and the Corporate Mapping were combined together and analyzed together

73
to reach a final report ie, the RETAIL MAPPING SUMMARY or THE CONDENSED

DRAFT REPORT, which gave the entire picture of the actual position if PEPSI in

NOIDA CITY. The report so prepared was on the basis of the Retail Tracking Sheet

and the other supplementary finding and observations were considered to reach a

consensus of declaring the route as a weak area or a strong area.

The reports were analyzed thoroughly by the Customer Executives and a

meeting was held for the assessment of the routes and the reasons of unfavorable

performance in the weak areas and how to improve the sales on those routes. The

discussion comprised of the further investments for the enhancement and extension

of the routes and the level of promotional measures required in these areas. The

performance of Coca Cola was also

reviewed simultaneously and a comparative study was made to assess the

performance and growth in the industry. These data and figures were compared with

that of the last year and a growth percentage was reached which also served as a basis

of declaring an area as a Weak Area.

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

going to be very dynamic in nature. The Customer Executives had to formulae day to

day strategies and these were communicated to RA’s in the morning when they were

going to leave the depot and this interaction among R.A.and C.E. was to be known as

Gate Meeting.

74
 The programmes were to be based on the seriousness of the problems and

accordingly a mild or aggressive marketing, promotional and investment programme

was to be formulated.

Findings
&

75
Observat
ion

76
 FINDINGS & OBSERVATION

The reports of each phase of the project had to be supplemented by the

information, data, facts and figures and significant findings and

observation to support the feasibility of decisions to be taken on the basis

of the Retail mapping Summary or the CDR. The information so recorded

in each phases of the project had to be listed in order of their relevance and

seriousness and presented in a form to facilitate immediate inference.

Some of the important observations have been listed below:

 Soft drink business’s behavior is not governed by brand loyalty so the

availability of the right brand, at the right place, at the right time is the key

for winning consumer in soft drink business.

 The most important and satisfying observation was that, PEPSI had

approximately 64% market share in the soft drinks market in NOIDA CITY

and some of its brands like Mirinda Orange and Mountain Dew were

performing above standards apart from PEPSI Cola in spite of the Coca Cola

with two cola flavor packs i.e., Coke and Thumps up.

77
 The present distribution system of PEPSI is the best in the entire FMCG

industry in NOIDA CITY and the major strength

of PEPSI. The enhancement in the distribution network would definitely

increase the market share of PEPSI.

 The retailers played a very critical role in the increment in the sales volume

of the product and the had to be kept satisfied in order to increase the market

share by offering better schemes, discounts, display materials such as VISI’s,

racks, counter, signage, wall paintings and better amount for purchase of

shelf space for display.

 The existence of sub-dealers and super stockiest are also the major area of

problem, as they do not move the schemes and other display materials and

incentives information to the retailers, which is one of the reasons for the

dissatisfaction of retailers.

 The cut throat competition between PEPSI and COKE had lead to the never

ending cola war and price war which has brought down the profit margins

which is one of the major grievances apart from the common complains

pertaining to schemes, incentives and display materials.

78
 The other major issue was the supply of PEPSI from the bottling plants in

Delhi and Punjab against the company policies. These plants supplied the

products at discounted rates and violated merchandising principles of PEPSI.

 Another critical issue was the presence of duplicate products of PEPSI in the

market. The details of these outlets have been surrendered to the company for

action against these outlets.

 The position of PEPSI in the corporates was not up to the mark and Coca

Cola had a better scene in this context. One of the reasons can be assigned to

the product positioning of PEPSI and Coca Cola.

79
Analysis

80
MARKET STATUS OF PEPSI PRODUCT

PEPSI-COLA PRODUCTS

Aquafina Lehar 7-Up

7% 9%
Pepsi
24%
Lehar
Soda
4% Mirinda
Orange
14%

Slice
20%

Mirinda
Lemon
Mountain 3%
Dew
19%

81
PREFERENCE OF SOFT DRINKS IN
QUANTITY

2 LT.
24%

200 ML
330 ML
(CAN) 37%
2%

600 ML
12%
300 ML
25%

82
RATIO OF CONSUMPTION OF SOFT DRINKS
PER 100 CONSUMERS

Once in a
week
Never Twice in a
3%
1% week
Occasional 12%
y
4%
Daily Often
13% 67%

83
The other Statistics and finding have been presented in
the form of various charts on the coming pages:

DEMAND OF SOFT DRINK

10%

50%
84
 CONSUMTION OF PEPSI BRAND

PEPSI
O T H ER S , 5 M .D E W
7 U P, 1 0
S L IC E , 1 5 P E P S I, 4 0 M IR IN D A
S L IC E
M IR IN D A , 1 5 M . D E W , 1 5 7UP
O TH E R S

85
 RATIO OF PEPSI AND
COCK IN NOIDA & NCR

O TH E R S ,
11 PEPSI
P E P S I,
45 COCK
CO C K , 44 O TH E R S

86
Recommend
ations

87
 RECOMMENDATIONS

The Project Retail Mapping was concerned only with providing the

organization with all the necessary information required to strengthen the position of

PEPSI in NOIDA CITY in the form of reports incorporating all information in an

analyzed and summarized form. But some critical and major issues, which have been

identified on account of extensive analysis, required suggestions to be put forward on

the basis of the current market scenario.

 There should be uniformity in, schemes, and discounts, which are offered to

the retailers and should be based on a specific parameter such as sales

volume, to avoid dissatisfaction and biasness among the retailers.

 Activities of sub dealers and super stockiest should be controlled and

checked in order to ensure fair prices and distribution of schemes and

incentives to small retailers to avoid discontent among smallholdings and

outlets.

 Every possible step should be taken for the satisfaction of the retailers, as they

are the most important supplement to the sales promotion measures and

nationwide advertising campaigns of the company in context of boosting the

sales and enhancement of the brand image of PEPSI.

88
  The operations of the bottling plants of the surrounding territories should be

controlled in order to ensure that they do not supply the product in other

territories not under their area of operation.

The company should modify its advertising strategy and educate the customers about

its age-old existence and enhance its brand image. This will appeal to the target

customers of middle and older age groups apart from the younger generation in

which PEPSI has a good hold.

 First and foremost things are that, whatever the policy is going to be

formulated it should not be same for all the areas. Different policies should be

framed and implemented at different areas by looking and keeping various

variables in the mind like buying habits, preferences, education level financial

position of that particular area and standard if living etc.

 Rural market being a very potential segment needs very quick and prompt

efforts to be taken to capture this high volume market.

 Many retailers complained regarding irregularly in visit by the executives.

They also said that executive give very bad response to their complaints. It is

necessary that executive should make frequent visit to cover each outlet and

try to provide them best

89
 Pouches, foreign particles were found in few bottles, so proper quality control

measures should be implemented as company’s reputation are at stake.

 There is a great market of soda (1 Lit.) but the supply of this pack is very

poor, so the supply should be made possible quickly.

 Quality of PET bottle should be improved so that most problems can be

minimized.

 Soft drink is still considered a treat virtually a luxury, so it possible company

should cut down its price especially of cans.

 Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets

etc should be made at regular interval.

 Claim should be provided to the deserving retailers.

 Wall painting should be made regularly in the area, as it is a good medium of

advertisement.

 Proper attention should be given to the retailer’s problem so that they take

interest to increase the sale.

 Proper advertisement should be made at railway station, bus stand, posh area,

major market and economies place etc.

90
 A company may create favorable impression among the youth if they

sponsors small events like college festivals, university programs, school

functions, fashion shows, quiz programs etc.

 Retailers need display material. To enhance the marketing of the product.

Limitations

91
 LIMITATIONS

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

 The respondents may be biased on influenced by some other

factors.

 Time and money were the greatest limitation in carrying out the
survey.

 A number of retailers (pan-shop) being illiterate, it took us lot of

time in collecting information.

 The mere information which we get from the retailers is not

sufficient to arrive at a conclusion.

 The seasonal changes affect the sell.

92
 Main
Key
Points

93
 MAIN KEY POINTS
 Service aspect of agencies is very effective, they deliver their product
according to the demand a just in time.

 After conducting the market survey of retailer in Ghaziabad city,

I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of PET.

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

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

 Retailers have problem in display material.

 Most of the place like cinema hall and educational institutions are dominated
by Pepsi-Cola.

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

 Aquafina (Pepsi-Cola) in Ghaziabad city dominated Kinley (Coca-Cola)

mineral water.

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

 Kinley soda (Coca-Coal) is also dominated by Lehar soda (Pepsi-Cola) in

Ghaziabad city.

94
 Maaza (Coca-Cola) is also dominated by Slice(Pepsi-Cola).

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

 In the market there is only a retailer on which the sale of the different product
of different company depends.

95
Conclusi
on

96
 CONCLUSION

The business of Soft Drink industry is significantly based upon the impulse

buying, so it is very necessary to Merchandise products of PEPSI efficiently and

present them in such a manner so that it can motivate the consumer and generate a

thirst in consumer to consummate it.

Though, PEPSI has a strong position in NOIDA CITY with the support of its

efficient distribution network, aggressive marketing efforts and advertisements along

with attractive schemes but there still exists potential market in NOIDA CITY to be

exploited and a suitable Weak Area Programme or the Strong Area Programme has

to be formulated to improve its market share depending upon the area under

consideration.

Soft drink business’s behavior is not governed by brand loyalty so the

emphasis is not only on creating the market but also on retaining it. The availability

of the right brand and flavor pack, at the right place, at the right time is a key for

winning the customer in soft drink business. Keeping these facts in mind it becomes

very important to treat the retailers with concern and satisfy them by various

measures and so that they are loyal towards PEPSI. Public relation is also critically

important in this industry.

97
Bibliogra
phy

98
 BIBLIOGRAPHY

Marketing Management (Written by Kotler Philip)

Principles of Marketing (Written by Gupta C. B.)

Research Methodology (Written by Kothar C. R.)

Magazines:

 Advertising Management

 Business India

 Business Today

 Business World
Journals:
Vikalp published by IIM
Websites:

www.rkjgroup.com

www.pepsiworld.com
www.pepsico.com
www.google.com

99
Questionn
aire

100
 QUESTIONNAIRE

Name : ____________________________________

Address : ____________________________________
____________________________________

Contact No. : ____________________________________

Q.1. Are you aware of Pepsi house hold scheme ?

a. yes b. no

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

a. Yes b. no

Q.3. Which brand of soft drink do you sell?

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

Q.4. Which quantity of soft drinks you have?

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

d. 2 lit. e. All.

Q.5. Which brand of soda do you sell?

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

Q.6. Which brand of mineral water do you sell?

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

Q.7. Chilling equipment owned by you?

101
 a. Only Pepsi-Cola b. Only Coca Cola c. Both.

Q.8. Do you get timely supply of these brands with proper schemes?

a. Yes b. No.

Q.9. Is your chilling equipment working properly?

a. Pepsi-Cola = Yes…. No….

b. Coca-Cola = Yes…. No….

Q.10. During breakdown of chilling equipment who gives better service?

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

Q.11. Whose racks do you own?

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

Q.12. Is there increase in sales due to display of the racks?

a. Yes b. No.

Q.13. Availability of glow boards provided by company through promotional

scheme.

a. Yes b. No.

Q.14. Are your customer aware of PEPSI HOUSE HOLD SCHEME?

a. Yes b. No c. Cant Say

Q.15. Has it effected your sale?

a. yes b. no c. cant say

102
Q.16. What %tage increase you got after this scheme?

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

Q.17.

200 ML 300ML

STOCK PCI CCX PCY CCX

REGULAR

600 ML 2 LIT
PCI CCX PCI CCX
STOCK PET

103
 WORDS OF THANKS

I take the opportunity to pay hearty regards to Dr. V.K. Bhatia (Director), Mr.

Satish kumar matta (Dean) and Mr. Manoj Kumar (HOD) and placement head

Mr. Sunil Nagar and Miss Gurmeet Kaur for lending me their kind support for

completion of my project.

I thank all those who directly support me normally, financially

and through providing knowledge by which I could complete my research.

Last but not the least I am thankful to management of VARUN

BEVERAGES LTD. Specially my guide Mr. Sharad Vatss (MDM) andRajesh

kumar (M.E) whose cooperation and guidance was a milestone in completion of

my project.

104