Professional Documents
Culture Documents
7 Finding
8 Recommendations 73
9 Conclusion 75
The project was done in Jai Beverages soft drinks limited, a franchise of PepsiCo limited to
increase the sales of PepsiCo brands in the market of Jammu & outer Jammu by using
different sales promotion activities as Coupon System, Scheme System & by the sales
promotion drive called as POG drive 2010..
The POG drive was aimed to improve the visibility of all the brands of Pepsi in Vissicoolers
of Pepsi in different parts of Jammu town. Under the program me, aim was to improve the
visibility of those brands that were having low sales as the program me has the tag line “jo
dhikta hai woh bikta hai” i.e. any product which is visible is bound to be sold. The drive
includes increasing the SKUs (Stock Keeping Unit) of PepsiCo in a planned manner. This
result into availability of space in the Vissicooler and visibility of different brands of Pepsi
and thus the sales increased. Retailers were motivated by way of prize distribution & schemes
so that they keep the PepsiCo brands according to POG (Plannogram).
The natures of respondents, which are selected, are the retailers ant the distributors of the
company. The area of project work is Jammu city including both rural and urban area,
forming a sample size of 130 retailers and 16 distributors.
Chapter-1
1.1 What is Retailing?
The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or
sheds a small piece from something. Retailing is the set of activities that markets products or
services to final consumers for their own personal or household use. Department stores, like
Burdines and Macy's, discount stores like Wal-Mart and K-Mart are all examples of retail
stores. Service providers, like dentists, hotels and hair salons, and on-line stores, like
Amazon.com, are also retailers.
Manufacturer
Retailers
Distributors/Wholesalers Consumers
Non alcoholic soft drink beverage market can be divided into fruit drink and soft
drink. Soft drinks can be further divided into carbonated and non carbonated drinks. Colas,
lemon and oranges are carbonated drinks while mango drinks come under non-carbonated
drinks.. The soft drinks market till early 1990’s was in hands of domestic players like Coke,
Thumps Up, Limca etc. but with the opening up of economy and coming of MNC players
Pepsi and Cock the market has totally under their control. Worldwide, Cock is the leader in
carbonated drinks market. In India it is Pepsi, which scores over cock but this difference is
fast decreasing. Pepsi entered Indian market in 1991. Cock re-entered (after they were thrown
out in 1977, by then central government) in 1993.
Pepsi has been targeting the youth and the sales have been doing well by sticking to
this youth segment. Cock on the other hand struggled initially in establishing itself in the
market. In a span of 7 years of its operations in the country it changed its CEO four times
they seem to have started understanding the pulse of Indian consumers
MERCHANDISING/ DISPLAYS
Proper merchandising and display at the store level promotes sales; it promotes the consumer to
switch over to the displayed brand ignoring existing brand loyalties; it persuades him to buy
“now” rather than latter; and it makes him buy more than the originally intended quantity. All
these are essentially sales promotional functions. While advertising can only make a consumer
aware of the product or generate a desire for it, merchandising/ display often motivates a
consumer to buy a product instantly. Point of purchase displays are one of the most widely used
sales promotions tools. With the proliferation of brands, innovative displays have become a
prerequisite for success. In the store brands compete with each other for consumer’s attention.
The training in the organization is very important for a student who is undergoing with such
course. This course is not the answer for all the problems, which arises in the practical fields.
There is no certain formula for any particular problems, but the aim of this study is to develop
the ability of decision-making. A right decision at right time itself helps an organization to run
smoothly.
This training in an organization gives an idea how decisions are taken tact fully when any
problem comes to an executive. So the way of problem solving, right decisions making and
knowledge of different type of marketing activities give much importance to the study. Though
only in two months it was not possible to understand it so deeply but an overall idea could
develop
Chapter-2
2.1 COMPANY-PROFILE
E-mail: jbpl@vsnl.com
The year was 1999 and PEPSI Company in India was very eager to improve its extremely
poor market share (less then 3%) in the state of Jammu and Kashmir. That was when it
approached the soft-drink maestros of India - the Jaipuria family, and Mr. C.K. Jaipuria in
particular, for starting a plant in J&K. In spite of all the odds, the non-inductive climate in
the state for a new business venture, he took a bold step and went ahead with accepting
the challenge and taking the franchise in the name of his elder son - Mr.Anuraag Jaipuria,
and Jai Beverages Private Ltd. Was born.
From the day of the decision, to this day in 2001, there has been no looking back. In this
short span of time, the company has been formed, sprawling compound of erstwhile M/S
Hindustan Levers Ltd. taken over from a supportive SIDCO, a prestigious unit in J&K,
after an initial investment of Rs.27.1 Crores, has been established with full backing of the
Ministry of Industries (J&K government), and an ultra-modern plant is in full swing. The
boiler used is oil-fired, with a 33m high chimney and an effluent treatment plant which
releases all the effluent water after full treatment at very reasonable, and much under the
Pollution Board's maximum acceptable BOD and COD levels. In fact, work in on to stop
all the treated effluent from going out and instead to utilize this water internally for
horticulture. In other words, the water is being put back into the earth to retain the water
table. Further,
Work has been done to grow more trees within the premises, in line with the universal
endeavor of making the earth green.
With the coming of this prestigious plant, there has been an upsurge in the economy of
the people of the area, in particular, and the state in general. The direct, and indirect,
employment generated by the unit has already surpassed a figure of 650, and is growing
steadily. The excise deposited to the Government exchequer has already crossed an amount
of Rs.361 Lacks, and is again growing. The once semi-deserted main road of the industrial
complex has become very busy and would soon be required to be widened.
In short, the coming of Jai Beverages Pvt. Ltd into the state of Jammu and Kashmir has
surely made a big mark into the industrialization of the state, with many big industrial houses
watching eagerly the outcome of this prestigious unit.
JAI BEVERAGES PVT.LTD is a part of the diversified Jaipuria Group being the major
franchisee of PEPSI in India. The group has Pepsi’s bottling plants in India and Nepal. It also
has the franchise for Modern Bread, Pizza Hut, besides business interests in Information
technology, Education, Healthcare and Textile retailing.
The co. is producing and marketing the complete range of Pepsi for the State of
JAMMU & KASHMIR.
. The fully automatic plant is being run by a team of professionals who have already made a
mark for themselves by creating history in the international PEPSI system by achieving the
GOLD MEDAL in the first year of operation from among over 400 plants worldwide.
The company is committed toward environment safety and is trying to convert its empty
space in to green and recycling waste water and has a modern working Effluent Treatment
Plant.
As per market share at present Pepsi is enjoying 42% market share whereas leader since 15
years in Jammu market on 58%.At present on the basis of commitments, quality, skills and
energetic team we feel give neck to neck fight to our rivals.
MANAGING
DIRECTOR
VICE
PRESIDENT
H. R .D. Finance Marketing General
Manage Manager Manager Manager
r Ward
Market Production
Development
Manager
Plant
Time Security Stores Manager
Officer Officer Officer
Area Purchasing
Development
Manager Quality
Manager
Marketing
Trainee
Pilot
Salesmen
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited
This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands
was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others
claim that firstly Pepsi was banned from import in India, in 1970, for having refused to
release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the
market shortly afterwards. These controversies are a reminder of "India's sometimes
acrimonious relationship with huge multinational companies." Indeed, some argue that
PepsiCo and The Coca-Cola Company have "been major targets in part because they are
well-known foreign companies that draw plenty of attention."
India is one of the top five markets in terms of growth of the soft drinks market. The per
capita consumption of soft drinks in the country is estimated to be around 6 bottles per
annum in the year 2003. It is very low compared to the corresponding figures in US (600+
bottles per annum). But being one of the fastest growing markets and by the sheer volumes,
India is a promising market for soft drinks.
The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like
elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot
and Thums Up when it entered Indian market for the second time. Pepsi Co’s soft drink
portfolio also consists of Miranda and 7Up along with Pepsi. The market share of each of
the company is more or less the same, though there is a conflict in the estimates quoted by
different sources
IndraK.Nooyi
Massimo.F.d'Amore John.C.Compton Michael D. White
CEOPepsiCoAmericas CEO,PepsiCo Americas CEO,PepsiCo Intl.
Chairman,
Beverages Foods &Vice Chairman,
CEO
PepsiCo
2.3 Our Mission
Our mission is to be the world's premier consumer products company focused on convenient
foods and beverages. We seek to produce financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate. And in everything we do, we strive for honesty, fairness
and integrity.
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
PepsiCo a truly sustainable company
Chapter-3
To break the Coke monopoly by way of sales promotional activity called as Scheme
system in which different schemes were offered by Pepsi.
To increase the sales of PepsiCo brands by way of sales promotional activities i.e.
Coupon System & by offering different Schemes.
CHAPTER-4
4.1Research Methodology
“The purpose of primary research generally should be to fill gaps in existing knowledge.”
(Stewart and Kamins1993). A qualitative research rather than quantitative is being pursued
because it is more appropriate for the study that is exploratory in nature. Hence, the study
does not require quantification of any element. This academic work aims at revealing the
process rather than the structure which is done through qualitative research (Carson et al,
2001: 65). Also, the qualitative investigation is more suitable as it provides “rich and holistic
data” answering the “why and how” questions (Birn, 1990).
As described in Chapter3, the effort made here in the project is to find out competitive
analysis and market share of pepsi. Recommendations will be made at the end of this project
with an aim to increase the profitability and business growth of the company. A systematic
and methodical approach will be used for the same purpose. The execution of the project is
mentioned further.
4.3.1 Description
For the research purpose, I had to find out the market position of Pepsi individually and in
comparison with its arch rival Coca-cola. Information had to be collected about the like the
number of bottles of PepsiCo and coco-cola in the retail outlet, type of signage, which
company’s cooling system possessed by the retailer, problems being faced by the retailer
ways to improve the market share of PepsiCo etc.. I also visited various distributors to get
their opinion regarding the present market position of PepsiCo and the problems they are
facing if any.
A Questionnaire prepared by me was the source of getting the required information. The
Questionnaire was prepared keeping the objectives in mind.
Visiting all these retailers and distributors and collecting the information was a great learning
experience, as I had to use my all theoretical knowledge and put them to practice.
(7) Interpretations\Findings