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Soft drinks are playing the vital role in the market and the companies are also getting the good
profits on these products. The soft drinks industry has originated in 1772. Now these drinks spread all over the
world and the millions of bottles is consumed every day. Now this business is a global one and the companies
are facing high competition in this business and they are changing their strategies according to the situations.
Pearl Beverages Pvt. Ltd. Takes a great care to maintain quality control of products in their factory.
The bottles are visually examined for impurities continuously, as the bottles move out. Samples are checked
every ten minutes of production time by the chemist for its quality and hygienic condition. The chemical
analysis is also flavours, gas contain and sugar percentage. The appearance, smell and taste of the production
are suspended and the correcting measures are taken also as to sent right the bottling process.
The main objective of the study is to find out the strength and weakness of the Pepsi in
visakhapatnam zone when compared to the Coca-cola, that is mainly in the three places in Srikakulam district
i.e. Srikakulam, Narasannapeta, and Amadalavalasa .Consulting almost all the outlets in these three areas,
which are selling the soft drinks with a structured questionnaire, has done the study. The data has been
collected and analyzed and interpreted by the help of the graphical representation technique.
The analysis revels the various strengths and weaknesses of Pepsi in these areas along with the
position of competitors. The most of the consumers preferred soft drinks because of better taste and to quench
out their thrust. But now days, due to the changing food habits consumers have started adding the soft drinks in
their food habits. The total sales of the soft drinks the Pepsi’s share is more but when compared with the Cock
Finally it can be concluded that the industry needs lot of channel management activities to do along
with various promotional strategies for the customers. I wish the company got its objectives achieved
CONTENTS
Chapter No
Title
Page No
1.
INTRODUCTION & DESIGN OF THE STUDY
1.3 Hypothesis
2.
ORGANIZATION PROFILE
2.4 HR Function
3.
THEORITICAL FRAMEWORK
3.1 Introduction
4.
DATA ANALYSIS & INTERPRETATION
5.
SUMMARY & SUGGESTIONS
5.1 Summary
5.3 Suggestions
5.5 conclusions
6.
BIBLIOGRAPHY & QUESTIONNAIRE
6.1 Bibliography
6.2 Questionnaire
CHAPTER-1
Introduction & Design of the Study
1.1 INTRODUCTION
In this chapter various accepts of study are going to be discussed. To which area of
management that study belongs to and various concepts that are related the area of study. The present
outcomes under marketing and deals in the specific with the distribution network and its management.
PEPSI COLA was in India from 1956-61 and left the country, as its products were not
acceptable by the Indian customers. But recently in 1990 it re-entered the Indian market, where by PEPSI
FOODS LIMITED was entered into a joint venture with PEPSI INTERNATIONAL, TATA and VOLTAS.
PEPSI Bottlers and Producers of soft drinks buy concentrate and sell at fixed price and
add a margin rationally for its products.
1.2 NEED OF THE STUDY
In modern days, market plays a vital role in rapidly changing industrial scenario. The marketing
decline is under going reappraisal in the light of vast goals, technological, economic and social changes being
faced by the today companies. The order to known the changes in the field of marketing it are necessary to
In view of intensifying competition in soft drink market, it is imperative that a brand keeps a constant,
which on them market and response properly and promptly to the dynamics of the market. It is in view of this
fact has the present study has been taken up for “PEPSI”.
To know and compare the merchandising of Pepsi and Cock in retail outlets.
To know the promotional activities of sales promotion, advertising and public relations.
To know the strategy of Pepsi and its competitors regarding the Marketing Mix.
To know the problems of retailers regarding the trade schemes and consumer offers.
To know the problems of retailers and to offer the suggestion for improving in sales.
1.5 METHODOLOGY
Introduction:
In this chapter, basically the methodology, by which the report has been prepared, is explained. The
exact need for conducting the study and total design of framework of the report prepared is discussed. The
According to the survey beverages can be classified into two segments. The first segment can be done
basing on the milk content, like milk based products like tea, coffee, flavoured milk, and health drinks (milk,
malt and coco) and the second segment can be done on non-milk products such as soft drinks and mineral
water.
According to the survey conducted on the consumption of beverages, Tea comprises 90%, filtered
coffee 4%, beverages 2%, instant coffee 2% and carbonated soft drinks just above 1% of total consumption.
Soft drinks industry is a well known consumer product industry. It originated in the year 1772. In the
USA first bottled soda was manufactured, by inventing a machine in 1809, the manufacturing of carbonated
Now a days soft drink industry is growing very extensively and millions of people are consuming soft
drinks everyday. Age, income, and climate are not at all a barrier for the consuming soft drinks by the people.
This is the reason for the tremendous growth in soft drink market.
Data which is required for the analysis and fulfillment of our objectives has been collected from two
sources. They are
1. Primary sources
2. Secondary sources
PRIMARY DATA:
Primary data is collected from the retailers through a structured questionnaire. It includes the first
hand information from the outlets. It can view as a survey. The questionnaire was especially designed to find
out the market share of the soft drinks and problems and weakness of Pepsi in that particular area. The chapter
deals with main analysis part of the study and the dealer outlets covered in the study is
Srikakulam
Narasannapeta
Amadalavalasa
SECONDARY DATA
Secondary sources include the information collected from the annual reports, published and
unpublished records of the company .various books and journals and internet also being used for collecting the
relevant data
After gathering the data from those two sources the data was analyzed, tabulated and
interpreted and finally suggestions were offered for the betterment of the company.
DATA ANALYZING TOOLS:
After gathering the data from the Primary and secondary sources the data was analyzed ,tabulated and
interpretations were written down with the help of graphs and charts , with the help of Microsoft Excel and
Microsoft Word.
The sample size is not universal , some part of other cities remained uncovered
The study of the soft drink industry which is known to be seasonally fluctuating on e percent
study does not take into account seasonal fluctuations. The results may not suit for all the
seasons
Personal basis may be existing as the dealer of varied nature elicits the information
Chapter-2
Company overview
2.1 INTRODUCTION
In this chapter, an over of all the major accepts related to the study is discussed. The total industry
profiles the soft drinks industry globally and in our country. The profile of the company with respect to its
operation number of franchises, market share of the company and many other factors would be discussed here.
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. Cola, lemon and oranges are carbonated drinks
while mango dinks comes under non-carbonated category. 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.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense thin in disposable containers.
SEGMENTATION:
The soft drink market can be segmented on the basis of place of consumption and on the
basis of type of products.
The segmentation on the basis of place of consumption divides the market into three parts:
1. on-permise-80% of the consumption of soft drinks is on premise i.e. restaurants, railway
stations, cinemas etc,
2. At-home the rest 20% of the market compromise of the soft drink purchased for consumption
at home.
The market can also be segmented on the basis of types of products into Cola products and non-cola
products.
1. cola products account nearly 62% of the total soft drinks market. The brands that fall in this
category are Pepsi, cola, Thumps Up, Diet Pepsi etc.
2. non-cola segment, which constitutes 36%, cam be divide into 4 categories based on the type of
flavour available, namely
Orange
Cloudy lime
Clear lime
Mango
I. Orange flavour based soft drinks constitutes around 17% of the market. The segment is largely dominated by
national brands like Fanta of Coca-cola Co. and Mirinda Orange of Pepsi Co. rest of the market is in hands of
smaller brands like Crush (earlier Cadbury Schweppes and now of Coca Cola), Gold Spot etc.
II. Cloudy Lime flavour constitutes 14% of the market and is largely dominated by
Limca of Coca Cola and Miranda Lemon of Pepsi Co.
III. Clear Lime this segment of the market witnessed good growth initially with all; the players launching their
brands in the segment. But now the growth in the segment has slowed down. The brands available in this
segment are 7 Up , Mountain dew of Pepsi, Sprite of Coca-Cola and Canada Dry( earlier of Cadbury
Schweppes and now of Coca Cola). The segment constitutes 3% of the total soft drinks market.
IV. Mango flavour segment constitutes 2% of the total soft drinks market and it directly competes with mango based
fruit drinks like Fruity. The leading brands in this segment are: Maaza of Coca Cola and Slice of Pepsi.
There is very thin line of difference between the clear and cloudy lime. The most obvious feature is
that clear lime has to be bottled in green bottles as sunlight harms the drink and changes the taste.
There are some small local brands at city or regional levels. Most of these are either merging with two
big players (Coca Cola and Pepsi) or they command a very small –less than 3% of the total market in their
respective areas.
The market preference is highly regional based, while Cola drinks have main market in metro cities
and northern states of U.P, Punjab, Haryana, etc... Orange flavoured drinks are popular in southern states.
Sodas too are sold largely in southern states besides the Bars. Western markets have preference towards
mango-flavoured drinks.
The government has adopted liberalized for the soft drinks trade to give the industry a boost and
promote the Indian brand internationally. Although the import and manufacture of international brands like
Pepsi and Cock is enhanced in India the local brands being stabilized by advertisements, good quality and low
cost.
The government has adopted liberalization for the soft drink trade to give industry a boost and promote the
Indian Brand internationally. Although the import and manufacture of international brands like Pepsi and Coke
is enhanced in India .The local brands are being stabilized by advertisements, good quality and low cost.
Soft drinks come under the category of products on impulse. This attitude of impulse buying is slowly
changing to occasion-led buying and also to some extent consumption through home refrigeration particularly
in urban areas.
•
The market is slowly moving from alcoholic carbonated drinks to fruit based drinks and
also plain bottled water due to lower price and ready availability.
•
Consumers purchase soft drinks particularly to quench thirst and therefore on travel not
having access to hygienic water reaches out for soft drinks.
•
Brand awareness plays a vital role in purchase decisions.
•
Availability in the chilled form also plays a crucial role in purchase decisions. This has made both the
companies to push its sales and to increase its retail distribution by offering Visi coolers to retailers
•
Why is there no aversion to consumption of soft drinks to any age group, the main
consumers of this market are people in the age group of 30 and below.
•
Product differentiation is very low, as all the products taste the same. But brand loyalty
is high in the case of kids and people in the age group of 20-30 years
•
According to NCAER survey, lower, lower-middle ands upper-middle class people do
91% of the total consumption of soft drinks in the country.
Major Players in Soft drinks Industries
The two global majors Pepsi and Coca Cola dominate the soft drink market in India. Coca Coal,
which would up its operations during the introduction of the FERA regime, reentered India 16 years later in
1993. Coca Cola acquired a major chunk of soft drink market by buying out local brands Thumps up, Limca,
Maaza and Gold spot from Pearl beverages, Coca Cola has also acquired Cadbury Schweppes soft drink brands
Crush, Canada Dry and Sport Cola in early 1999 and now recently in Oct.2008 .It acquires distribution rights
of these brands from IFB Agro Ltd . Pepsi stated a couple of years before Coca Cola manufactures came up
with their own market share figures and claimed to have increased their share.
Retailers started that the consumers are loyal to the particular segment of the soft drink i.e. Coca Cola, Orange
or Lemon. But as for the loyalty for the brands in each segment is concerned, it is not very significant.
43% of the retailers surveyed told that in the soft drink industry advertising is the key component, it drives
sales. While 32% stated promotional schemes and 20%brand loyalty as the reason.
•
As consumers are not very brand loyal where the purchase of the soft drink purchase is concerned, the retailer
purchase becomes a critical issue. They usually sell the product in which they get maximum benefit. For this,
While distributors get the margin of Rs 8-9 per crate (1 crate is equal to 24 bottles) at 3-4% of MRP, retailers
are given margin of 10-12 % of MRP. The retailers are not happy with this, as the cost of refrigeration very
high for soft drinks to overcome this problem the companies are offering Visi coolers schemes to their main
retailers
Pepsi Company’s over all missions is to increase the value of their share holder’s investment. they
believe that their commercial success depends up on offering quality and value to their consumers and
providing products that are safe, whole some and economically efficient and environmentally sound. Providing
a fair return to their investors, while adhering to the highest standards of integrity.
Pepsi Co Inc. was founded by Donald M. Kendall, President and chief executive officer of Pepsi –Cola and
Herman W. Lay, Chairman& Chief executive of FRITO-LAY through the merger of two companies in the
year 1965.
Pepsi Company Inc. is among the most successful consumer products company in the world with: 1998
revenues of over $22 billion &1, 51,000 employees. Pepsi company’s brand names are among the best known
& most respected in the world .Some of the Pepsi Company’s brand names are 100 years old. FRITO-LAY
Company is the world’s largest manufacturer and distributor of snack chip and Tropicana products Inc. is the
Pepsi-cola provides advertising, marketing sales and promotion support to the Pepsi-cola bottles. New
advertising and existing promotions keep Pepsi-cola young. The company manufacture and sales of the soft
•
In 1996, Pepsi entered Japan and Eastern Europe.
•
In 1967, PepsiCo. Stock splits two-for one.
In 1986, North America van lines (NAVL), a premier transportation company Pepsi co, and renamed a
strong contribution to the Pepsi unit it has divided in 1984.
In 1969 in bold modern Pepsi cola packing which was using red, white and blue were introduced. FRITO-LAY
introduced fungus brand onion flavoured snacks. In 1970 Pepsi introduces the industry’s first two litter bottles.
Pepsi is the first company to respond to consumer preference with light weight, recyclable, plastic bottles.
In 1971 Andral E. Pearson was appointed as president of PepsiCo, a position he held until his retirement in
1984.in 1972 don Kendall announced agreement making Pepsi cola the first foreign product sold in U.S.S.R.
Pepsi co is given exclusive rights to import Stolichnaya Russian vodka in the U.S.
In 1973 and 1974 Pepsi-cola became the first American consumer product to produce made and sold in
former Soviet Union.
In 1975 Pepsi Lite, with destructive lemon taste, is introduced as an alternative to traditional diet colas. In 1976
PepsiCo adopts code of worldwide business conduct. Pepsi-cola became the single largest selling soft drink
brands sold in U.S super markets. In 1977 PepsiCo shares spilt up three for one. In 1987 and 1979 the opening
of PepsiCo research and technological center in Vallah N.Y PepsiCo reached 85 billion marks in sales. Pepsi
was formed to focus on the overseas development of restaurants. In 1981 PepsiCo fitness center was
completed, making PepsiCo, one of the most advanced companies in the area of employee’s health and fitness.
In 1982 Pepsi free and diet Pepsi free, the first major brands caffeine free colas were introduced.
Inauguration of the first Pepsi cola operations in china:
In 1983 The Bottler Hall of Fame was established to recognize the achievement and dedication of
international bottlers. In 1984 diet Pepsi is reformulated with 100% neutral sweet, slice and diet slice. The first
major soft drinks sirucsare added in Mexico. The cola were takes “one giant spilt for
mankind” when a Pepsi “space can” is successfully tested a brand the span shuttle. 1986 Pepsi company board
of directors visit the peoples public of china to make the opening the Pepsi second plant in china.
In 1989, Pepsi Company introduce share power stock option program for all employees becoming the
first large corporation tool award stock options through virtually all full time employees. In the 1900, Pepsi
company was recognized as one of the most admired corporation by the fortune magazine’s top 10 for the two
successive years. Pepsi signs the largest commercial trade agreement in history with the Soviet Union
expecting sales in the USSR to double by the end of the century. Pepsi re-entered the Indian market in
collaboration with Punjab Agro industries Corporation (PAIC). In 1991 Pepsi company named one of the
fortune magazine’s top most admired corporations, for the third year in also. Pepsi co. purchased an equity
position in the carts of Coloreds Inc. the leading manufacturer and marketer of mobile merchandising
equipment. It was sold in 1955. 1993 Pepsi Cola began the distribution of Lipton’s line of ready to drinks teas
WWW.Pepsi.com
SOCIAL RESPONSIBILITY OF PEPSICOLA COMPANY:
As a consumer products company, Pepsi Company does not have the major environmental problems
of heavy industry. Their biggest environment challenge is packaging generated by their products.
Packaging is important to public and a critical component of the distribution system is to deliver
products to consumers and commercial establishment. To meet both consumer demand and safe guard the
environment, they recycle, re-use and reduce packaging wherever possible. Each business is also committed to
Often new flavours are to be added to the product line of cool drinks to prevent a competitor.
To establish a relation with retailers it is desirable to sell more than one flavor of cool drinks. To decrease the
security seasonal products are added to the resources available so as to lessen its risks. Pepsi has given the
franchise of Visakhapatnam region to Pearl Beverages which belongs to Pearl Group with Head quarters at
Delhi and Mr. C.K. Jaipuria as the chairman and the Managing Director of the group. Pepsi Foods Ltd.,
declared Krishna Mohan Beverages and Constructions as franchise, in 1992.Last year it was changed to Pearl
Beverages was taken by the Pearl Group. Campa- cola Soft Drinks has originally owned the premises since
1980 at Madhurawada. After the insolvency of campa-cola, KMBC purchased the premises in1990 in the
auction by APSFC. Initially, it used to produce Mc.Dowell’s soda and Bagpiper soda. It produced these drinks
under franchise agreements but company could not exist in the market due to stiff competition from pearl
products.
Pepsi cola was in India from 1956 to 1961. it left this country, as its products were not found
acceptable to the Indian market. Pepsi foods Ltd. Joint venture between Pepsi Co. international of US(which is
holding 40% of the equity)and Tata concerns Voltas and the Punjab Ago industries Corporation (each of which
have as round 25% of the equity),has 25%of its output reserved for beverages with a 50% export commitment
fo9r fruit and vegetable products. According to Pepsi officials the project guarantees that for every American
dollar the company takes out of India, it will bring five back.
They started concentrated factory in Punjab. This company named as Pepsi Foods Ltd. Pepsi Co.
international’s direct investments in India so far amounts to Rs.165 corer. Two thirds of this however has gone
into food processing. Pepsi foods are exporting fruits and vegetables to UK etc.
The Pepsi’s foods processing unit directly supervised 1,200 hectors under tomato cultivation
covering 183 villages and 319 farmers. The company’s technical inputs enabled the farmer to achieve a yield
of 35 to 50 tones a hector against the average of was after discontinuing teems. KMBC Pvt. Ltd. Has was the
bottle for five districts Vizag, Vizianagaram, Srikakulam, and East Godavari & West Godavari. It receives the
PRODUCT PROFILE
The Pepsi Co. is known for the development and introduction of world-class brands & products.
Their portfolio is organized into three core business, which consists of snacks, Beverages and Restaurants.
Pepsi products are constantly changing themselves to develop new products. They encourage consumer to
Main objectives:
The objectives of the company set out in memorandum of association and franchise
agreements are as follows:
financial structure:
To start and operate business, any company has to invest its capital in fixed assets and floating
assets and also in meeting the daily requirements of the company. However, depending on the nature of
business and product being offered by the company, the ratio of investment of capital in fixed and floating
assets differ.
Working Capital:
It means capital required for daily management of the company eg. Wages, salaries,
canteen expenses and transportation expenses etc
Plant layout: the machine and equipment have been imported from Germany, which are arranged
in the plant according to the sequence of operation. All the operations are carried on a continuous movement.
Since the company follows continuous operation movement, the cost of material handling
goes low. The total floor space required by the machine is less than other types of plant layouts.
Plant Capacity:
The company installed latest up to date automatic plant conforming to plant layout. The installed
production capacity is 400 bottles per minutes i.e. 24,000 bottles per day. The plant also is having 100 bottles
per 1-leter line. During off-season the plant runs one shift. The company has to produce enough bottles of soft
drinks at a speed to keep in space with the disappearance of soft drinks form shelves of the retailer.
Production Schedule:
The production schedule is fixed by taking into consideration.
The production schedule for each brand is fixed daily, filling the bottles of each branded flavors.
This has an advantage in manufacturing the branded product is one at a time.
Quality control
Pearl Beverages Pvt. Ltd. takes great care to maintain the quality control of the products in
their factory. The Bottles are visually examined for impurities continuously, as the bottles move out. Samples
are checked every ten minutes of production time by the chemist for its quality and hygiene condition. The
chemical analysis is also made for flavors, gas content and sugar percentages. The appearance, smell and taste
of the products are also checked. If any defects are noticed, the production is suspended and the correcting
measures are taken so as to set right the bottling process irregularities. Further, samples from each batch are
dispatched to the affiliated parent agency company in each week for quality checkup. Moreover, agency of the
company also lifts sample form the market at the random for quality checkup at any time to make sure that the
At the end of the production schedule, daily all the equipment floor and wet patches are
cleaned with bleaching powder or some other solution. The standards of hygiene maintained inside the
The word organization has two common meanings. The meaning signifies an institution or function as
group and the second meaning refers to the process of organizing the way of work which is arranged and
allocated among members often organization so that the goal of the organization can be achieved efficiently.
The organizing involves balancing the companies. Needs both for stability on one hand and change on the
other hand, an organization structure means adopting a change or it can be a source of resistance to change.
Specialization of activities.
Standardization of activities.
Coordination of activities.