Pepsi Saurabh Singh
Pepsi Saurabh Singh
Pepsi Saurabh Singh
TO evaluate the competitive Strength of Pepsi in a given market place to improve its competitive edge in the market place.
GORAKHPUR CITY
FOR
PEPSI
ACKNOWLEDGEMENT
It is really a great moment for me to present this report of my summer training. Dedication, hard work and application are vital for achieving any goal but these are also awarded by guidance/co-operation and proper assistance. A number of persons have given their precious time and ideas to complete the report.
I am highly indebted to Mr. Nitin Bhandari (T.D.M), Pepsi Co. Ltd Lucknow, who kindly gave me opportunity in this organization. I also wish to express my sincere gratitude to Mr. Rakesh Shukla (ADC) in Lucknow for this help and proper assistance without which this report could not have been complete. I am highly thankful to Mr. Mukund Mathur (Customer Executive) and other customer executives of warehouse, distributers who have provided me with their great help ,generosity and enthusiasm that enable me in completing this project. I am greatly indebted to Mr. Yash Shridhar (Faculty Member) of Internet Institute of Special Education , Lucknow who arranged my summer training in this organization.
Saurabh singh
PREFACE
As a part of BBA curricular summer training was undertaking with Pepsi Co. India holding Ltd. One of the biggest soft drinks makers in the world. The summer training went for one months i.e.04-06-08 to 04-07-08. The purpose of this training was to have practical experience experience of working in marketing organization to have expousure to various management practices in the field of marketing. During this training apart having the practical experience this project was assigned to me. The report is an attempt to go through the details of penetration of pepsi and to study the strategy of the organization to gain to the market share. No professional curriculum is considered complete without work experience. Every individual who is doing management studies has to undergo this phase to practical study before he/she can consider himself/herself fully qualified as a potential manager.
EXECUTIVE SUMMARY
This project report is prepared for submission to the in Internet Institute of Special Education , Lucknow partial fulfillment for the degree of "Bachelor of Business Administration. This project was prepared during work the eight weeks as summer trainee in Pepsi Co. India holding Ltd, Gorakhpur on the topic of "Every dealer survey for different segments of Pepsi share Gorakhpur. For every human being there are basic necessities like food, shelters water, air etc. Without which no human being can service. Water is consumed in different from for instance tea and coffee is preferably consumed in winters and soft drinks are mostly preferred in summers. The average human body requires at least six once of liquid everyday to service. The Indian mythology " Jal Hi Jeevan Hai " is proven by science and technology.
The Indian cola Industry wants to offer Pepsi to consumer in place of water and to provide slice in place of fruit, because fruit may not be available in all seasons but slice will be available in all seasons. That's the way company wants to spread in the Indian market. There are many players in the industry market having their own different strategies to have competitive edge on the competitors. If we look at the present scenario and we found that if a person in thrust then the first thing that strikes in his mind to quench in summer is purely a cold drink. This is possible by the advertisement and promotional schemes by company. Initially Coca Cola was way ahead of all its competition but the Pepsi emerged as challenger and with in some years Pepsi ahead of Cola mainly industry specially eastern part of India and more especially in Gorakhpur. The Market strategy of Pepsi simple, they projected the idea of making major outlets in the each territory. This was really to spread in the Indian cold drinks market. Pepsi has spent a lot of money on this project by giving them money for this type of projects.
INTRODUCTION
THE COMPANY
INTRODUCTION OF COMPANY PEPSI HISTORY IN INDIA HIERARCHY OF ORGANISATION COBO STRUCTURE SYSTEM IN WAREHOUSE PEPSICO HEAD QUARTERS LIST OF OFFICES
PRODUCT PROFILE
PEPSI PRODUCT PRODUCT PROFILE(IN BRIEF) WHATS IN PEPSI? REGULAR CAFFEINE FREE PEPSI
MARKET
THE SCOPE OF MARKETING ADVERTISING AND PUBLICITY
COMPETITORS
COCA COLA RC COLA COLA WARS
THE COMPANY
Pepsi Co the soft drink multinational industry is unique by itself it is among the most successful consumer product companies in the world with 198 revenue of over $22 billion and 151000 employees, The company consist of Pepsi cola company the worlds largest manufactures and distributor of snacks chips and Tropicana products, Inc. the worlds largest markets and products of branched juices. PepsiCos brand names are among the widely known and most respected in the world. Some of the PepsiCos brand names are 100 years old, but the corporation is relatively young. PepsiCos Inc. was founded in 1965 through the merger of Pepsi Cola and Frito-Liyo. Tropicana was required in 1998. PepsiCos success in the result of superior product high standards of performance, distinctive strategies and the high integrity of there people. There strategy is to concentrate their resources on growing their businesses, both integral growth and careful growth and select acquisition. This strategy is continually fine-tuned to address the opportunities and risks of the market place. The corporations success reflects their continued commitment to growth and focus on this business where they can drive own growth and create opportunities.
INTRODUCTION OF COMPANY
CALEB BRADHAM, a new born (North California) pharmacist concocted pepsi Cola in the year 1898 as a cure for dyspepsia (indigestion) it was a result of months of experimentation with different combination of species, juices and syrups. The results were phenomenal and the cola became popular among the customers. In 1902 : Caleb Launched the Pepsi Cola company in the backroom of his pharmacy and applied to the U.S. Patent office for registration. In the first year he spent $ 1900 on advertising when he sold about 400 litres of syrup. Initially the soda was mixed and sold through exclusive soda fountains but soon Bradham realized the vast opportunity that lay ahead in bottling the syrup and the great potential for growth the world over. THE 1900s: The century began with the first punch line for Pepsi "exhilarating, invigorating and aids digestion." On June 16, 1903 the company was officially registered with the U.S. Patent office. The business began to grow and in 1905 Pepsi's first bottling plant came into operation. More plants followed soon thereafter and by 1907 Caleb were selling 50,000 litres /year. He also stared awarding franchises to independent investors. infact+ building a strong franchise system was one of Caleb's greatest achievement.
Realizing that advertising and marketing was a key to proxperity. Bradhan hired a New York Agency in 1909. THE 1920S: FIRST DOWN FALL AND ATTEMPT AT RESURRECTION................................. The real trouble stared at the end of the first Word war when Bradhan over stocked sugar at high prices expectafim of a price hike but subsequently the price hit rock bottom in 1920, by the year 1922 the company became insolvent and in the year 1923 it went completely bankrupt. As it was to be in 1921 only 2 Pepsi Plants were in operation and the valuable Pepsi trademark was up for sale. During this time Ray C. Maguared become interested in Pepsi Cola and for the next 8 years struggled to reorganize it, but with the stock exchange rash of 1929 he failed to gather the strings and in 1931 the company was bankrupt for the second time. THE 1930,S : Third Coming..................................and then
expansion Around this time Charles Grunth President of the Giant Candy company bought the trademark and experimented with different options including formula change and sale of the Next company to Coo-Cola but without much success. The success canine only after he offered 12 ounce bottles at 5 cenbs while other colas were sold at the same. Price but in ounce bottles.
IN 1930S: international expansion in full east and the trademark was registered in Latin America and Soviet Union and franchise were awarded to bottlers in Canada. Then the Pepsi tune "Nickel" was first advertising jingle to be played on the radio in 55 different languages. THE 1950S: ADVENT OF SUPER MARKETS MOTIVATOR CHANGE IN STRATEGY................................... The 1950's saw the emergency of a retail phenomenas called the super markets, which along with the change in economics of producing soft drinks forced Pepsi to abandon its strategy of selling soft drinks at half the price of competition. Pepsi at the time was being consumed in more than 100 countries around the world with its sale volume touching the 50 million dollar mark. THE 1960'S ADDITIONS AND DIVERSIFICATIONS In the first 65 years of existence the Pepsi Cola Company was selling only one product but the 1960's saw a few additions to the family of Pepsi Cola brands. These included a calorie drink (Diet Pepsi) a regional favorite (Mountain Dew) and full scale commercial distribution of cans. Late Pepsi also formed a successful merge with Frito Lays Inc. to form Pepsi Company. The following year the company Europe and Japan. By the close of the decade Pepsi and positional itself as a strong contender for the top slot in the soft drink, industry and was challenging coca cola's dominant position.
THE
1970'S
LEADING
THE
WAY
FOR
THE
COMPILITION............ In the mid 1970's Pepsi had become the single largest soft drink in the American Super Markets, so much so that coke abandoned its centre old recipe in flavour of a new formula to taste more like Pepsi.
THE 1980'S JOINZING THE BRAND Pepsi also started major celebrity endorsements to in concise the brand and as the 1980's were half way through Pepsi had 600 cola plants operation around the world in 148 countries and sales in excess of 200 million dollars. THE 1990'S GENERATION NEXT This decade saw the Pepsi's entry into high potential markets of China, Mexico, Argentina and India. Pepsi increased its focus on the customers and the restructuring, Slice a new flavor was added to its brand but here was prominent change that saw Pepsi selling off its restaurant business (Kentucky Fried Chicken, Pizza hut etc.) independently. Today Pepsi has a sales turnover of more than 25 billion dollars and is one of the top 25 brands globally. to branch out
Every decade in the century gone by has unfolded a different story and Pepsi has quite consistently its positions as one of the best soft drinks in the world.
and Pepsi India g company are controlled by Business Unit (BU) located at GURGAON. This divided in to various Marketing Unit (MU). All except the North End Madwt Units have common borders with states comprising of these. The market units. Areas which are COBOS i.e. Company Owned Bottling Operations while in other areas the operations are run by a Franchisee. These We learned as Owned bottling Operations (FOBO) and in some aver joint Venture COBO in a COBO, the company has total control of the decisions And join under independent to take their own marketing and operational. With no major interference from the company. The FOBOS are supplied the from the company and they have to run the show thereafter. Pepsi maintains ownership of the trade mark and the primarily responsible for ownership in a local. On. It helps Pepsi in maintaining strong trade mark on the other Partys and expertise. The PCI workflow concentrates on selling, making And delivering. Pepsi Cola is a company with a low margin, high volume bum. Pepsi Co
with in the Carbonated Soft Drink (CSDS) market. CSDS fall in two dies and ours. COLAS concentrates on Pepsi where as flavors deal with mango In India the flavors are Mirinda (Orange & Lemon); Slice is fruit juice concentrates drink Mug out in 1989, with the name of Leper Pepsi, the company has grown Leaps bounds ever sine, with competition increasing with ranwAy of Coke a few yeah ago. Thanks to an early leap and a better understanding of the market India remains the handful of markets worldwide Pepsi is ahead of its arch rival Coke Despite being the global brand, Pepsi has its success on meeting out the Indian customers. Pepsi has made its brand synchronize with Localized commas and WkoOus, Pepsi maintained its top of mind awareness with roadsides Qulp and reminders. The partner type relationship with battles, FOBOS as well as COBOS cover must of company adequacy. One of the strongest weapon in Pepsis armory is the flexibility; it has empower its people within Pepsi within Pepsi. Every employee may be a manager or a salesman have an authority to take whatever step he or she
feels, make the consumers aware of the brand and increase its consumption. Thus Pepsi believed in establishing and suturing credibility of the salesman and making the joint commitment to grow business in accounts. All these factors together lead to a high growth in the Indian market and constantly increasing market share.
CEO Dir. Sales MUM UM (COBO) TDM (ALLD) PAM ADC CE TDM (GKP) MM TDM (LKO) TDM (KNP) MEM AE/AC UM (FOBO) TDM (BLY) UFM CSR PM ST TDM (UTT)
COBO STRUCTURE
Unit Head
TDM
Accounts
Plant Head
Personal
Marketing
Head
Head
Head
ADC Sale A/C Head Accounts Executive Administrative Officer Executive Officer
CE
Marketing
Shipping Manager
40
SYSTEM IN WAREHOUSE
TDM
CE
ST
ADC
PEPSI JINGLES
1976 to
1992
Gota Have it
2005
LIST OF OFFICES
HEAD OFFICE
3B DLF CORPORATE PARK S BLOCK QUATAR ENCLAVE PH-III GURGAON (HY) Ph. (0124)355863, 355868, 355871, 355880 SION TROMBAY ROAD SUNDER BAUG ESTATE CHEMBUT MUMBAI 400088 Ph. (022)5564001, 5564003, 5563734, 5563736 III FLOOR WELLINGTON PLAZA 90, ANNA SALES CHENNAI- 600002 Ph. (044)8557755, 8557761 JL-47, BARHANS FARTAMBAD CHARAKTALA 24 PARGANAS SOUTH KOLKATA- 700084 Ph. (033)477794
WEST MU OFFICE
SOUTH MU OFFICE
NORTH MU OFFICE
6TH FLOOR, RAJ CHANBERS RANA PRATAP MARG LUCKNOW (0522)238660, 239034
PEPSI PRODUCT
Pepsi Company has worldwide operation in 3 fields. 1. 2. 3. Non alcoholic beverages. Snack foods. Fruit Juices
Pepsi Company
Snack f
Fruit JuicesTropic
Pepsi Company's India operations were established in 1988 as Franchisee based under Pepsi Cola International in India Pepsi operates as : * * * Pepsi Food Ltd. Pepsi Company India holdings Pepsi India Marketing Company.
Pepsi cola is a world class company in "low margin, high volume" business which means sales of high volume for the product in order to be profitable and complete in the global market. * * Company Owned Operation (COBO) Franchisee Owned Operation (FOBO)
COBO :
COBO stand for company owned bottling operations, COBO has been of Pepsi Company's biggest strategy, which has proved to be winner.
A bottling operation is a capital intensive business, particularly so the returnable bottle market like in India and the investment is the forth level.
Apart from the capital cost of plant and equipment the bottles has to invest in bottles and crates, truck and cooling structure (Visi. Coolers and ice boxes) at the retail point industry estimates @Rs. Crate which is equivalent to the price at which the crate enters the distribution system Bottlers operates on margins around 10% with the bulk of the killing (between Rs. 24 and Rs. 30 per crate or about 20%) being made by the retailer. Excise and other taxes amounting Rs. 40 per crate. The going for a COBO is the risk of Pepsi Company and it is also implied a big attitude change from a totally marketing orientation to an operation mindset.
COBO'S IN INDIA:
STATES : Gujrat, Kolkata, Banglore, Madhurai, Chennai, Uttaranchal. In UTTAR PRADESH : Kanpur, Lucknow, Bareilly, Gorakhpur, Allahabad, Jaunpur and Sathariya. In UTTARANCHAL : Bazpur.
FOBO :
FOBO stand for franchise owned bottling operation, in India Pepsi has franchise. In the case the company supplies its soft drink concentrate to its franchies (bottle syrup). Pepsi has taken a more capital - intensive route of the owning and running its own plants along side those of its franchises. Pepsi pumped in money to upgrade plants of franchises, which were weaker did not have financial worth were given massive support in form of interest free loans to upgrade their operations. Getting into FOBO has helped Pepsi Company on several fronts. First, its has enabled Pepsi to focus on marketing operations as much as it has on operation fronts. Another gain of going FOBO is that since the franchises have to invest in plants and machines glass bottles, trucks, and infrastructure, the cost burden has been reduced.
FOBO IN INDIA :
Nagpur, Agra, Delhi, Goa, Kerala, Bihar, Orissa, Andhra Pradesh. Bhopal.
* * *
Franchise invest in plants and machines, glass (Bottles) Truck and Infrastructure
PRODUCT PROFILE
BEVERAGES:
Pepsi Cola Company: PepsiCos beverages was founded at the turn of the century i.e. in the year 1890 by Caleb Bradham, a New Born, N.C, druggist who first formulated Pepsi Cola. Young (indigestion) with combination of species, juices and syrups and wanted dyspepsia (indigestion) with combination of species, juices and syrups and wanted a refreshment new drink to serve his customer. He succeeded beyond all expectations as he invented the beverages now known around the world as PEPSICOLA. In 1902, he launched the Pepsi Cola company in the backroom of Pharmacy, and applied to U.S & patient office for Trade Mark. The business
began to grown on June 16, 1993, Pepsi-Cola trademark was officially registered with U.S & office.Troubles stated at the end of the First World War when Bradham over stocked sugar at high price which subsequently dipped in 1920. By 1922, the company was insolvent by 1923, it went bankrupt and Bradham returned to Pharmacy. In 1936, Pepsi had 1 $2 million net profit. Today consumers, spend about $31 billion on PepsiCola beverages. Pepsi Cola Co. launches new beverages line, Fruit works five flavor line of fruit drinks. Pepsi Cola revives the Pepsi challenge advertisement campaign challenge includes Pepsi one and diet coke as well as regular cola. Pepsi-Cola teams up with yahoo inc. the biggest web navigation, company in a multimedia marketing campaign aimed at teens and young adults. Pepsi company completed the acquisition of a majority stake in south beach beverage company. Pepsi company announces a new joint venture will be foamed in Egypt combining the salty operations of chips, the current market lender and tasty foods which is owred by PepsiCo.
WHATS IN PEPSI ?
Pepsi Contains:Carborated water, High Fructose, Glucose syrup/or sugar Colour, Phosphoric acid. Caffeine, Citric acid and natural flavours.
Calorie Total Fat (g) Sodium (mg) Potassium (mg) Total Carbohydrates
100 0 25 10 27
27 0 25
Caffeine[mg]
Here are we discuss how much market shares of each brands of soft drinks. There market share as follows-
Soft Drinks
Pepsi Mirinda[Orange&Lemon] Orange Leman Mango Flavour of Slice 7Up Teem Soda Aquafine
Markets Share
57 % 22 % 2% 1.5 % 1.55 % 2% 3%
Dew Mountain
11%
Quantity details of all brands of soft drinks are given as below S.D Pepsi Mirinda Orange Mirinda Lemon Mirinda Apple Slice 7UP Diet Pepsi Teem Soda Aquafina Dew Mountain QUANTITY 200ml, 300ml, 500ml, 1lit., 1.5lit, 2lit 300ml, 500ml, 1lit., 1.5lit, 2lit 200ml, 300ml, 1.5lit 200ml, 300ml 250ml 300ml, 1.5lit 330ml 250ml, 300ml, 500ml, 1.5lit 500ml, 1lit 200ml, 300ml, 500ml, 1.5lit
The PepsiCo company has provides its 300ml bottle soft drinks
[B.D.S] in the month of June 95, 200ml launched in the year of 1999 and 1lit, 1.5 lit bottle launched in the year 1996 while 500ml and 2lit launched in 2000, mineral water Aquafina has launched in year 2001. Mountain Dew (200ml,500ml) has been launched in the year 2003.
Marketing is typically run as task of creating. Promoting delivering goods and services to consumer and business. Marketers are skilled in stimulating demand a companys products. But this is too limited a view of the tasks marketers performs .Marketing managers run to influence the level timing and competition of demand to meet the organizations objective marketing people are involved in marketing 10 types of entities: good, services experience, events, persons. people , organization, information and ideas The Decisions Marketers Make: Marketing managers face a host of decisions from major once such as what product features to design into a new product, how m,any sale people to hire or how much to
spend on advertising. Here questions vary in importance in different market places. Consider the following four markets-Consumer, business, global and non profit. (i) Consumer Market:
Companies selling mass consumer goods such as soft drinks, toothpaste, Television etc. and air travel spend a great deal of time trying to establish a superior brand image. This requires getting a clear sense of their target customers and what must be their product will meet and communicating brand partitioning forcefully and actively consumer marketers decide expenditures that will help their brand achieve a number one or two position in their target market.
(ii)
Business Market:
Companies selling business goods and services face well trained and well informed professional buyers who are in evaluating competitive offerings. Business marketers must
demonstrate how their products will help customers achieve higher revenue or lower cost. Advertising play a role, but a stronger role is played by sales force, price and the companys reputation for reliability and quantity. (iii) Global Market:
Companies selling goods and services the global market place face additional decision and challenges. They must decide which counties to enter, how to enter each country, how to adopt their product and service features to each country, how to price their product in the different countries in a narrow enough band to avoid creating a gray market for their goods and how to adopt their communication to fit the cultural practices of each country. (iv) Non profit and Governmental Markerts :
Companies selling their goods to non profit organization such as churches, Universities, Charitable Organizations or Government Agencies and to prices carefully because there organization have limited purchasing power. Lower price affect the features and quality
that the seller can build into the offering. Much government purchasing calls for bids, with the lowest bid being favored in the absence of extenuating factors.
Defining Marketing We can distinguish between a social and managerial definition of marketing. A social definition shows the role marketing plays in society. Our marketers said that marketing is role to deliver a higher standard of living. Here which individuals and groups obtain what they want through creating, offering and freely exchanging products and services of value with others. For a managerial definition, marketing has been described as, : the art of selling products. But people are surprised when they hear that the most important part of marketing is not selling. Selling is only of the tip of the marketing iceberg. Peter Drucker, a leading management theorist puts it in this way. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should results in customer who is
ready to buy. All that should be needed then is to make the product or service available. Ultimately, marketing management as the art and science of choosing target markets and getting, keeping and growing customers through creating delivering and communicating superior customer value.
Marketing Mix:
The marketing mix is the set of marketing tools the firm uses to pursue its maketing objective in target market .Mc Carthy Classified there tools into four board groups that he called the four Ps of marketing-product, price, place and promotion . Marketing mix decision must be made for influencing that trade channel as well as the 4Ps
Product
Price
Place
Promotion
Final consumer.As figure shows the company preparing on offering mix of product ,service and price utilizing a promotion mix of sales promotion , advertising ,sales force , public relation , direct mail ,telemarketing and interest to reach the trade channel the target customer . Note that the 4Pc present sellers view of the marketing tools available for influencing buyers , from buyers point of view , each marketing tools is desingned to deliver a customer benefit .Roberts Lavternorn suggest that the seller four Ps corrrospond to the customer s four Cs.
Selling companies will be those that can meet customer neds economically and conveniently and with effective communication.
Product: Product means the good and service combination of company offers to the target company changes the sizes varity, flavour,brand name of the product after one or two year Price: Price is the amount of money which customers have to pay to obtain the product calculates suggested retail price that its dealers might charge for forces ,but ford dealers really charge the full sticker price Place: They are mostly available in all place but easily available in the Urban Market but not frequently found in Rural Market Promotion: Promotion means activities that communicate the merits of the persuade and target customers to buy it. The measurement factor in promote the Pepsi
product is increase good transportation in rural market IT the Pepsi is available to capture market than it is found first position of soft drinks industry.
Pepsi in one of the biggest and spenders in India , it is also one of the biggest global and spenders .it has long a list of endorsers from pop star Ricky Martin to film star Sharukh Khan ,Karina Kapoor , Prityn Jinta ,Safe Ali Khan ,Fardin Khan and Amitab Bacchan ,Hindusthan Thompson Associates, the big guest advertising agency of India has the account of Pepsi Co , PepsiCo is known for its broad cost advertisement but it also spend a lot in non broad cost advertising i.c. hoarding banners ,poster stickers hanger ,dealer board ,glow signboard ,wass painting and
news paper the expenses of there type of advertising are made at territory or unit level .Gorakhpur Territory has assigned two local advertising agencies R:D.Associates and Kishna for its territorial advertising. Some celebrity also invited in Gorakhpur for publicity of different brands.
COMPETITORS
Coca-Cola
Coca-Cola
Type Manufacturer
Related products Pepsi Irn Bru RC Cola Cola Turka Zam Zam Cola Mecca Cola Virgin Cola Parsi Cola Qibla Cola Evoca Cola Corsica Cola Breizh Cola Afri Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines worldwide (The Coca-Cola Company claims that it is sold in more than 200 countries.[1]). It is produced by The Coca-Cola Company in Atlanta, Georgia, and is often referred to simply as Coke or (in European and American countries) as cola, pop, or in some parts of the U.S., soda.
Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to various licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, which has become a major diet cola. However, others exist, including CaffeineFree Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime, or coffee. In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive linked to DNA damage and hyperactivity in children, of Diet Coke. The company has stated that it plans to remove the controversial additive from its other products, including Sprite and Oasis, as soon as a satisfactory alternative is discovered.
S. No.
PARAMETERS
COKE
PEPSI
1. 2. 3. 4. 5. 6.
NUMBER OF BOTTLING PLANTS Ad. SPENT MARKETING PEOPLE No. OF CEOS IN THE LAST YEARS MONEY INVESTMENT IN INDIA NO. OF BRANDS
1. There is no proper supply of the different type of flavors at the time to retailers.
2. Specially the flavors of pepsi is not so good as the flavors of
Thums-up so the flavors of pepsi should be changed. 3. There is no proper filling of bottles of glass. There are some other materials inside the bottle that may be injurious to the health of consumers. 4. There is no proper filling of the pet bodes also. There are many pet bottle in which there is no gas. And so the flavors of the liquid is also affected and it may be injurious to the health of the consumer also there fore such type of mistake should be improved by the company. 5. The supply of the flavors which are preferred by consumers is not good. 6. There are many retailer in the market who sale only the products of coke. 7. The information technological facilities should be improved.
1. There id no proper arrangement of different type of flavors of pepsicola. 2. Some times it is found that when demand of the product is high in the market then there is the lack of the product in the agency. En such cases the consumer purchase other product such as Thums-up,cocacola. 3. The salesman of the distributors are not good and educated. 4. the distributors are not able to provide good transport facilities.
5. Sometimes distributors hide the scheme and delay in its distribution.
They will not get the product at proper time. They will not get the schemes at proper time due to carelessness of the distributor. There are many retailer who say that the products which they find, they sale yet the supply of the product is so bad that they are not able the products in proper time. There are many retailers to whom the condition of cooling equipment is not good and those equipments are lying as such in the shops. There are many retailers whose cooling a equipment are small according to their sales capacity. They are requesting for big fridg in size or new other one. Whenever there is any festival annual function or any type of fair in the market the there are many poor retailer who are not able to cool the sufficient amount of the products. And so they are requesting for lee-box. There are many retailers who are requesting for glow-sign. There are many retailers who are requesting for dealer board. Maximum retailers (near about all the retailers) are requesting for painting. All the retailers are requesting for racks (stand).
RESEARCH METHODOLOGY
OBJECTIVE AND SUBJECTIVE
METHODOLOGY ADOPETED
SAMPLING
INSTRUMENT
SUB OBJECTIVE:CHANNELS FILLED STOCK GLASS STRENGTH STATUS COOLING EQUIPMENT ICE CHEST SIGNAGE RACKS
NUMBER OF OUTLET::1]
NWN Raj Restaurent Ashok Gupta Hotel Sandeep Cool Drinks Sri provision Store Shyam Bhojnalay Jaysawal General Store Mini Modella Maddesiya Provision Store Prem Hotel Ashok Hotel Mahesh Restorent Ravi General Store
Loogiten Durga Provision Store Govind Jayswal Hotel New Famash Hotel Bhagtgi Janral Store
METHODOLOGY
For this study researcher have divided the outlets of different route in three category. They are as follows:a) Blue Outlets:Under these outlets those shops are defined who sells only Pepsi and whose market share is 100%. b) Red Outlets:Under this, those shops are defined who sells Pepsi and others both but market share of Pepsi is less than 50%. c) Mix Outlets:Under this, those shops are taken who sells Pepsi and others both but market share of Pepsi is more than 50%.
METHODOLOGY ADOPTED
FOR DEFINING THE RESEARCH PROBLEM:1. 2. 3. What is the study purpose?. When & where to have the study? How different variables correlate with each other?
SOURCE OF DATA:Data has been collected from primary sources as well as secondary sources as responses from consumer as well as the seller has been thoroughly studied. DATA COLLECTION METHOD:Data has been collected through survey on predecided & well defined format given to us by the company. TYPES OF STUDY:Descriptive Analysis
METHODS OF STUDY:-
Different routes were timely allotted to have an exhaustive study. Also allotment of different outlets (indirect routes) there given to us which further facilitated us to meet those customers which were supplied the product through the agency. I went to different routes and completed whole route to have a good and detailed study.
DATA COLLECTION METHOD:Researcher has collected the primary data through a survey format and which has been analysed with the help of statistical tool for the achievement of objectives. All datas are collected in June 2005 period, which may differ from other period & person to person. SAMPLING:Random samples are taken for the study different outlets are considered in this sample from different are of Gorakhpur region. Researcher have covered different type of shop like grocery. Convenience, Eately, leisure and Canteen. Trainee has covered following agency as assigned by trainers-
INSTRUMENTS:-
The instrument which has been to get collect the information that is survey formats, which meant for Every Dealer Survey (EDS format) under which different data is entered by the survey (shown in annexure) For the analysis of data, the collect datas are shown in percentage and for effective explanation of data, pie diagram have been used.
DATA ANAYSIS:-
All collected datas are distributed in different parts for the achievement of different objectives and has been placed as for the requirement of results. Data has been in shown in percentage and presented by the pie diagram.
ANALYSIS
The data analysis has been done in two parts, researcher have done survey in given agency to cover maximum outlets for optimum results. All objectives have been analysed with the help of survey report.
NEW RAJ RESTAURENT ASHOK GUPTA HOTEL SANDEEP COOL DRINKS SRI PROVISION STORE SYAM BHOJNALAY
(vi)
(vii) MINI MODELLA (viii) MADDESIYA PROVISION STORE (ix) (x) (xi) PREM HOTEL ASHOK HOTEL MAHESH RESTAURENT
The Comparative Table of Different Outlet are Given Below Outlet Name
NEW RAJ RESTAURENT ASHOK GUPTA HOTEL SANDEEP COOL STORE SRI PROVISION STORE SYAM BHOJANALAY 50C/S -22C/S 12C/S --
Pepsi
43.5% -100% 52.17% --100% -100% ----50% --100% 65C/S --11C/S -------6C/S -23C/S ----
Other
56.5% 100% -47.83% 100% -----100% 100% -50% ----
JAISWAL GENERAL STORE -MINI MODELLA MADDESIYA PROVISION STORE PREM HOTEL ASHOK HOTEL MAHESH RESTORENT RAVI GENERAL STORE LOOGITEN 70C/S -7C/S -----
DURGA PROVISION STORE 23C/S GOVIND JAYSWAL HOTEL -NEW FAMASH HOTEL --
In 17 outlet given six outlets are found closed and on three outlets the supply of Pepsi is closed.
PEPSI OTHER
100%
PEPSI OTHERS
DURGA PROVISION STORE GOVIND JAISWAL HOTEL NEW FAMASH HOTEL BHAGAT GI JANRAL STORE
The Comparative Table of Different Outlet are Given Below Outlet Name
NEW RAJ RESTAURENT ASHOK GUPTA HOTEL SANDEEP COOL STORE SRI PROVISION STORE SYAM BHOJANALAY 50C/S -22C/S 12C/S --
Pepsi
43.5% -100% 52.17% --100% -100% ----50% 65C/S --11C/S -------6C/S -23C/S
Other
56.5% 100% -47.83% 100% -----100% 100% -50%
JAISWAL GENERAL STORE -MINI MODELLA MADDESIYA PROVISION STORE PREM HOTEL ASHOK HOTEL MAHESH RESTORENT RAVI GENERAL STORE LOOGITEN 70C/S -7C/S -----
--100%
-----
---
NEW RAJ RESTAURENT SANDEEP COOL STORE SRI PROVISION STORE MINI MODELLA PREM HOTEL RAVI GENERAL STORE
PEPSI OTHER
100%
SYAM BHOJNALAY
PEPSI OTHERS
89
PEPSI OTHERS
MINI MODELLA
PEPSI OTHERS
PEPSI OTHERS
PREM HOTEL
PEPSI OTHERS
ASHOK HOTEL
JA
0%
PEPSI OTHERS
MAHESH RESTORENT
PEPSI OTHERS
PEPSI OTHERS
0%
LOOGITEN
JA
PEPSI OTHERS
PEPSI OTHERS
0%
0%
JA
PEPSI OTHERS
PEPSI OTHERS
PEPSI OTHERS
MINI MODELLA
PEPSI OTHERS
PEPSI OTHERS
PEPSI OTHERS
PEPSI OTHERS
PREM HOTEL
PEPSI OTHERS
PEPSI OTHERS
Market is a place where companies built their success and earn profit on one hand whereas at other hand it can finish also any company. It is very necessary to make strong position in the market and to built a image the mind of customer. Under this study researcher also try to find the position of pepsi in the market and researcher has got success also up to some extent which can be understood in the following way:As in the first part of the study tables and diagrams are showing that pepsi has a strong place in the market. There is one agency i.e. golden agency. The number of outlets in the agency is 17. among these 17 outlet. Six outlets were found to be closed. In the remaining 11 outlets the percentage of blue outlets are more than red outlets. Under NWN raj resturent no. of blue outlet are 43.5% & other are 56.5%. Under ashok gupta hotel the no of blue outlets are nill and others are 100%. Under sandeep cool drinks the no of blue outlets are 100% and other are nill. Under shree provision store the no of blue outlets are 52.17% and other 47.83%. Under shvam bhojanals the no of blue outlets are nill and others are 100%. Under mini modella the no of blueoutlets are 100%. Under prem horel the no of blue outlets are 100% and others are nill.
Under mehesh resturent the no of blue outlets are 0% and others are 100%. Under ravi general store the no of blue outlets are 0% and others are 100%. Under durga provision store the no of blue outlets are 50% and others are 50%. Under bhagat ji general store the no of outlets are 100% and others are nill. So the above result are showing that the highest no of blue outlets are present under the following outlets. Sandeep cool drink Mini modella Prem hotel Bhatgi ji general store
And the lowest is present under the following outlets Ashoka gupta hotel Shyam bojnalay Mahesh restorent Ravi general store
After that other outlets take place. In the second part of the study researches has find the market share of the pepsi and other in total market share in gorakhpur region.Here pepsi has captured high market share i.e. 73.82% and other are 26.18%. which is a strong part of being success in the market of softdrinks for pepsi.
The ultimate result is that pepsi has got the strong position in market but it may unstable due to some drawback. As researchers observed there are lack in advertisement by glow shine boards retailers can be motivated and can give good sells to the company. As researcher experienced in the survey period there are some problems faces by retailer about transportation in adequate information about shemes, boards etc. so there gap of communication. Further retailer and company it should be removed for better result. So pepsi should take some favorable action replacement problems and to maintains the position in the market.
OBSERVATIONS
I. Improper distribution of other fiavours some hampers the distribution of cool drinks. II. The amount of all major outlets of scheme given by pepsi more then that of competitors. III. The schemes outlet to major outlets are attractive. IV. Covered area having few market that can not cover all the area of consumer so that should be extended.
CONCLUSION
Survey reveals that gorakhpur territory has big potential for cool drinking urban areawhile in rural area is a still great need of increasing awareness. Major outlets has to cope up with intense competition with other competitors in the cool drink sector. It is very clear that pepsi is one of the best selling cool drinks as for as taste is concerned, but it stands last when profit of margin for the retailers and market retail prices for the consumer is considered. Althougt pepsi is gaining its position in the gorakhpur territory in order to increase its sales, it should be reached on each outlets in aggressive way some more attractive scheme should be launched and implemented from time so that customers and retailers benefits.
1.
availability of the products may be at its maximum limit in warehouses and then it can be supplied to distributors and distributors can supply to the retailers at proper time.
(B) Distribution channel:- Distribution channel related to
company should be improved. We should adopt that distribution channel which has very less no of intermediaries.
(C) Information technology:- Information technological
connections should be improved. Latest technological devices should be used by each member which are related to the company, even dealers, distributors, sub- distributors and the retailers who have monopoly related to the products of pepsi company.
(D) Transport facilities:- Transport facilities should be improved
distributors also so that they can supply the products in the market timely.
(E) Efficiency:- The working efficiency of the members who are
related to the company should be increased. For this the company should select the employee in proper way. For this only efficient and capable employee should be selected.
2. Each type of flavors should be produced the company in sufficient
amount and the flavors which are not preferred by the consumers. Either that flavors should be changed or the production of that flavors should be slopped. 3. Any one of these flavors can be applied to change the flavors of Pepsi. (A)Thunder & harsh with delicious apple flavor. (B)Thunder & chocolate flavors in coldness (chill). (C)Thunder & coffee flavors in coldness (chill). (D)Decrease the amount of sweetness with thunder.
4. The filling of he bottle should be carefully and after that each bottle
should be checked carefully and attentively. 5. Such type of mistake should be improved by the company through the observation of each bottle carefully. 5. The production and supply of the flavors which are preferred by the consumers should be more and so that more and more profit and consumers can be generated. 6. The product which demand is very less the company should provide scheme with that products so that consumers may be attracted toward it.
7. The retailers who are selling only the products of coke they should be given some extra schemes & avarice so that they may be exited for the selling of the products of pepsi.
8. Sometimes distributors delay in the distribution of schemes. Such type of mistakes should be checked by the officers of the company.
If they want to flourish in the market they should spend their maximum time and money in distribution and arrangement of the different types of products and they should supply it properly. There should not be lack of any flavors to retailer. Sometimes it found that when then demand of products (such as 7- up and dew) is high in the market then there is the lack of the products in the agency. In such cases the consumers purchase other products (such as Thums-up & coca-cola ). So the availability of different type of products in agencies should be at its maximum limit. The information technological connection among the company. Ware house and distributors (agencies) should be improved so that then condition of demand and supply of the products in the market can be know recently or when it is required. Good salesman should be hired by the distributor who can increase the sales and demand of the products. Each distributor has at last 2 or 3 tampoo or other motors for the distribution of the products so that he may able to supply well and timely in the market.
BIBLIOGRAPH Y
SOURCES OF INFORMATION
"Pepsi-Cola Company, A domestic historical outline". James Johson, Chicago. IL, 1984.
"The other Guy Blinkd, How Pepsi Won the Cola Wars". Roger Enrico, Jess Kornbluth, Bantam Books, 1986.
"Pepsi-Cola Collectors Club Newsletters". Bob Stoddard. Editor, Covina, CA. 184 to 1988.
* * *
*
Marketing Management : Philip Kotler. Sales and Distribution Management : F.L. Lobo.
www.pepsicoIndiaHolding.com.
en.wikipedia.org
QUESTIONNA IRE
QUESTIONNAIRE FOR SURVEY General Information:1. Name: _________________________________________________________ 2. Name of shop : _________________________________________________________ 3. Age: _________ 4. Sex: Male [ ] Female [ ] 5. Marital Status: Single [ ] Married [ ] 6. Educational Background: High School [ ] 10+2 [ ] Graduate [ ] Post Graduate [ ] 7. Employment Category: Self Employed/Professional [ ] Business [ ] Salaried [ ] 8. Annual Income/Salary: <1 lacs [ ] 1 - 1.5 lacs [ ] 1.5 2 lacs [ ] 2 2.5 lacs [ ] 2.5 lacs or above [ ]
Questions:9. Sir/Madam, do you buy Pepsi from retailers? Yes [ ] No [ ] 10. What is the average sale of pepsi in aday? Less than 10[ ] More than 10<50[ ] More than 50 [ ] 11. How many caret of Pepsi you buy from a retailer in week? 0-5[ ] 5-15[ ] 15-30[ ] 30-50[ ] more than 50[ ]
12. What is the average sale of Coke product? _________ 13.Do you face any problem in availability of Pepsi? YES [ ] NO [ ]
14. Do your retailer provide any concession on buying a full caret? YES [ ] NO [ ]
15. Do you know how many brand of Pepsi co. available in the market? Yes [ ] No [ ]
16. How many caret of other cold drink you buy from a retailer in week ? 0-5[ ] 5-15[ ] 15-30[ ] 30-50[ ] more than 50[ ]
PEPSI GLOSSARY
---------- is a geographical area which includes a number of outlets. ---------- is a set of outlets called on by a salesman per day. ---------- is a set of outlets called on by salesman on a specific day. ---------- is the number of times an outlet is scheduled to be called on by a salesman in a week.
A CALL
---------- is the communication which takes place between the seller and the buyer.
---------- the active attempt of a salesman to sell the product to the consumer. ---------- is the keeping of product on the truck at the plant and warehouse. ---------- physical delivery of the product to the buyers.
MERCHANDISING
----------activity in an outlet carried out to make the product more visible, accessible, convenient and attractive to the consumers.
---------- is the main beverages display usually in a store shelf. ---------- is an additional opportunity to display Pepsi product and increase impulse sales.
FLOOR DISPLAY
---------- create stacked on the floor to improve visibility & accessibility of the product.
PROMOTIONAL DISPLAY ----------is specially done to draw attention to new packs, product promotions and specially offers done in a shop window product arranged attractively using POP material. POP ---------- Point of Purchase (POP) is marketing material used inoutlet to bring additional attention to the product.
ANNEXURE