A SUMMER TRAINING REPORT ON

MARKET EVALUATION OF PEPSI

Submitted in partial fulfillment of the requirement for the degree of Master of Business Administration

SUBMITTED TO: Ms. SHWETA SINGH Director-C-MAT

SUBMITTED BY: SYED YASIR IQBAL Roll No. 0914970056 MBA-3rd Sem Batch: 2009-11

UNDER THE GUIDANCE OF MR. KIRTI SINHA

CENTRE FOR MANAGEMENT TECHNOLOGY

Plot No. 25, 27, 28, Knowledge Part-I, Gr. Noida

ACKNOWLEDGEMENT
Surpassing milestones towards a mission sometimes gives us such degree of jubilance that we tend to forget the precious guidance and help extended by the people to whom the success of mission is solely dedicated. I would also like to thank Mr. Kirti Sinha, [Course Coordinator] in C-MAT, Greater NOIDA who helped me in the completion of this project.

(SYED YASIR IQBAL)

TABLE OF CONTENTS

 Preface Acknowledgements Certificate Introduction Company profile

003 006 011 012 015

 History Objective of study Product offered Swot Analysis Research methodology Presentation of data Analysis Findings Conclusion Limitations

020 037 052 055 057 064 086 089 092 094

 Recommendations Bibliography Questionnaire(annexure)

096 099 101

PREFACE

PREFACE
Summer training is an integral part of management courses. Summer training experience refers to knowledge and skills acquired by a student by participation in activities performed by professional. It is distinct from an education in which theoretical knowledge is acquired. The ability to develop solutions to practical through application of theoretical knowledge is acquired by management students in the course of their summer training. It also helps the students to develop professional competence and related skills as also to imbibe certain ethical values and norms expected of professionals. The soft drink industry has entered to booming phase and soft drink is available everywhere like water. To monopolize market powerful projects are undertaken. This project is an endeavor in that direction.

The development of soft drink market it is necessary to touch all areas and the soft drink should be available in rural areas as well as in urban sector, now the companies are focusing on rural market and the strategies for that are made and market research for the promotion is

needed. These are mainly PEPSICO. INDIA HOLDINGS (PVT.) LTD and COCA COLA (PVT) LTD. The soft drink industry is also characterized by small players in the local market who produce soft drinks and fruit beverages to meet the local demand. At present Indian market is also less organized & not much branded. The Indian consumers, on an average, has also not awakened to the fact that there are a numbers of soft drinks and fruit beverage available in tetra packs and glass are hygienic and healthy to consume. To grab the rural market share, all the players are doing continues innovation on every front of marketing mix ranging form product, place, prince, promotions and packaging in various colors, sizes, flavors & packages.

In the process of marketing distributors, retailers & consumers all are considered as major elements, on the motivation of these channels have gained a lot of importance. Pepsis contribution of soft drinks and grabbing the market share make it more renowned among the competitors. The company targeting, the major competitors of soft drinks with the weapons of marketing mix tools. Due to its position as would be leader in soft drink

in urban areas, this fact faster the smooth increase in rural market of soft drinks in India. This project focuses on the rural sales promotion and mapping in Itaunja, Kursi road Chinhat, and malihabad tehsils in Lucknow districts in months of June, July . The contents of this report have been carefully planned. All the analysis is based on primary data. The report has been written in lucid language and necessary data and chart are used for easy understanding. I am hopeful that the reader will find this project useful in preparing strategy for rural areas.

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ACKNOWLEDGEMENTS

ACKNOWLEDGEMENTS
The training will be incomplete without acknowledge giving my sincere, gratitude to all persons who have helped me in the preparation of this dissertation. First of all, I thank GOD ALIMIGHTY for the blessings showered on me throughout this project work, which has helped me in the successful completion of the training. I feel privileged in expressing profound sense of gratitude and indebt ness of Mr. Rajat Lakhani (T.D.M) PepsiCo. Holdings India

11

(Pvt.) Ltd., Lucknow, who gave me excellent opportunity to work with Pepsi Family. I am thankful to Ms. Mallika (A.D.C.) PepsiCo. India Holdings (Pvt.) Ltd, Lucknow who gave me my project title and guided me to complete my project. Her valuable guidance, constant encouragement and inspiration were instrumental in the complexion of this report. She always allowed me to encroach upon her precious time and showed her generosity with ideas. Im thankful to the Mr. Pawan Salooja (CE),

Lucknow constant cooperation and assistance during the project period. I take this opportunity to extend my sincere gratitude and profound obligation towards my guidance Ms .Kamini Singh , Lecturer centre for Management tecnology,GR. NOIDA for giving me valuable suggestions & his inestimable help rendered to me throughout the project and all other faculty members for without their encouragement and continuing support, this project would not have been possible.

GAURAV SRIVASTAVA

12

M.B.A.III rd Sem C-MAT GR.NOIDA

13

INTRODUCTION

Introduction
The Goal of PepsiCo India is to grabs the market share of soft drinks as much as possible from the competitors in rural as well as in urban areas. The company likes PepsiCo. India is expecting a growth rate 40% in near future in the market of fruit drinks.The soft drink market has recently witnessed expansion with the entry of several new players. Traditionally soft drinks were aimed at Urban areas only but newly marketing strategies are focused on all areas urban as well as rural because nearly 70% population of India live in rural areas. Today, in soft drink market, the market leader is PEPSI with its Pepsi, Mirinda , 7up dew, 7up ice, Slice, Aquafina and other

competitors are Coca cola with its brands Sprite, Coca cola Thums up, Maaza, Limca , Bislery (water) and local brands. Still, the Pepsi Company holds a competitive position in the market. The company has adopted a mix of strategies to grab the market shares. The Pepsi Co. has come up with different flavors of soft drinks with different packages of 200ml; 300ml, 500ml, 2lt and tetra pack also various brands available in the soft drink market.

15

As the soft drink market is growing with a very fast rate the main aim behind the launching of new flavors in different packs and different rural areas leader in the soft drink market. Vision To be the best consumer products company in the eyes of the suppliers, customer, employees and shareholder.

16

COMPANY PROFILE

17

The Company
The company is divided into business units [BU] with headquarter in New York. There are nine bus in the whole world. India comes under the southeast business unit, which also covers the Nepal, Bangladesh and Sri Lanka. The Indian headquarter are located at Gurgaon: each business unit has some market units [MU] under it. In India there are three MUs:1. South market unit [SOMU] whole of south 2. West market unit [WEMU] Mumbai rest of Maharastra and Gujrat. 3. Northeast market unit [NEMU] West Bengal U.P. and Uttrakhand. Pepsi Co. has world wide operation in three fields:

Business
1. Non-alcoholic beverage 2. Snack food and Fruit Juice

PEPSI Co. Beverage includes:

Pepsi cola North Amer Pepsi co icala International

In INDIA Pepsi operates as:

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 Pepsi foods ltd. Pepsi India holdings ltd. Pepsi India marketing company A north coralina pharmist CALEBBRADHAM concocted Pepsi-cola in the year 1890 as cure dyspepsia (indigestion). In 1903, Pepsi-cola trademark was registered Bradham believed marketing would be the key to Pepsi-cola prosperity and in his first year of business he spent $1900 on advertising when he sold only 40,000 liter of syrup. Bradhams business strategy worked and in 1905, he built Pepsis first bottling plant. There were some more plants followed soon and in 1907 he was selling 50,000 liters per year in 1909 he hired a New York advertising agency for promoting the syrup prepared. Troubles started at the end of the world war when Bradham overstocked sugar at high price which subsequently dipped to rock bottom in 1920 by 1922, The Company was insolvent and by 1923, it went bankrupt, Bradham returned to his pharmacy. A well street broker ROY MAGARELL stepped in recognized the company. However the company was running at loss each year and with the stock market crash in 1929, Megarell was not able to upkeep

19

the company any longer in 1931, the company went bankrupt a second time. At this Charles Guth president Giant Candy Company, aloft inch bought the trademark, he experimented without success a number of options including formula change and sale of company to coca cola. His success came when he offered 12 ounce at 5% while other cola were sold at the same price in six ounce bottle. Yet Richar Tedlow, a harward business school professor says two soft drinks giants Pepsi and coke have unwritten agreements to avoid price competition as much as possible. He says the Pepsi the challenger that showed that the consumer preferred Pepsi taste in blind test, was never embarrassed by Pepsi that the one would have expected, because executive feared coke would strike by slashing price and running it. The retirement of way no call away Pepsi ailing chief executive at 60 and his replacement by Roger Enrich a 51 year old Pepsi veteran better known as beverage marketing superstar, commenced analyst the most exiting one yet. Merrill lynch Allan Kaplan agrees, Pepsi is a good company. It has growth as fast as coke every year for the last ten years infact the

20

stock has been sow over bought I am not recommending either company. Coke trade at 31 times 1996, earning and Pepsi at 22 times.

Pepsi has gone for a change. It ditched its red can as a part of a part of major global over-haul, backed by the most expensive advertising blitz ever undertaken after 54 years as a lovable light red white and blue can; Pepsi-cola goes electric blue. Pepsis blue look signal a sharpening of the companies focus on its core teenage audience the new color signifies modernity and everything good, exciting and dynamic. It is a color that convoys refreshment.

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HISTORY

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History
PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. 1Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees.2 Major products of the new companies are:

1 2

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Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948. Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheeotos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961)

1966
Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the U.S.Pepsi enters Japan and Eastern Europe.

1967
Pepsi Generation advertising, "Come Alive! You're in the Pepsi Generation" campaign that named and claimed a whole generation (1963-67) , introduces new theme: "Taste that beats the others cold Pepsipours it on

1968
North American Van Lines (NAVL), a premier transportation company, joins PepsiCo. NAVL remains a strong contributor to PepsiCo until it is

24

divested

in

1984.

1969
Bold, modern Pepsi-Cola packaging using red, white and blue is introduced. "You've got a lot to live, Pepsi's got a lot to give," becomes the advertising theme Frito-Lay introduces Funyuns brand onion flavored snacks. Mountain Dew changes its slogan to "Get That Barefoot Feel in' Drink in ' Mountain Dew."

1970 PepsiCo sales pass the $1 billion mark. The company has 36,000 employees. PepsiCo moves from New York City to new world headquarters in Purchase, N.Y. The new corporate headquarters feature a building by one of America's foremost architects, Edward Durrell Stone (1902-1978), set on a campus of 144 acres amid an outdoor sculpture garden. Pepsi is the first company to respond to consumer preference with light weight recyclable, plastic bottles.

1971
PepsiCo Chief Executive Officer Donald M. Kendall assumes the position of chairman of the Board of Directors on the retirement of Herman W. Lay. Lay maintains an active role in the corporation until his

25

death December 6, 1982.Andrall E. Pearson is appointed president of PepsiCo, a position he holds until his retirement in 1984.

1972
Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package graphics from hillbillies to action-oriented scenes. Sales climb and Mountain Dew will become one of the 10 bestselling soft drinks in the United States

1973

Foods International, later called PepsiCo Foods International (PFI) and subsequently named Frito-Lay International, is established to market snack foods around the world. The third Mountain Dew slogan appears "Put A Little Yahoo in Your Life." 1974 PepsiCo sales pass the $2 billion mark. Pepsi-Cola becomes the first American consumer product to be produced, marketed and sold in the former 1975 PepsiCo has 49,000 employees. Pepsi Light, with a distinctive lemon taste, is introduced as an alternative to traditional diet colas. Hello Sunshine" becomes the slogan for Mountain Dew. SovietUnion.

26

1976 The Pepsi Challenge, introduced in Dallas, Tex. in 1975, becomes a national campaign. Around the nation, consumers select Pepsi-Cola as the best tasting cola. Pepsi-Cola becomes the single largest selling soft drink brand sold in U.S. supermarkets. Advertising campaign is "Have a Pepsi day!" "Puppies," becomes one of America's best-loved ads. 1977 PepsiCo acquires Pizza Hut; Inc. Pizza Hut was founded in 1958 by Dan and Frank Carney. It is spun off along with Taco Bell and KFC

businesses as Tricon Global Restaurants, Inc. in 1997.PepsiCo passes the $3 billion mark in sales. PepsiCo stock splits three-for-one.

1978
Taco Bell is acquired. Taco Bell was established in the mid 1960s by Glen Bell. It is spun off along with Pizza Hut and KFC businesses as Tricon Global Restaurants, Inc. in 1997. Later becomes YUM.

1979

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Opening of PepsiCo Research and Technical Center in Valhalla, N.Y. PepsiCo reaches $5 billion in sales. Pepsi introduces twelve-pack cans.

1980
PepsiCo Food Service International (PFSI) is formed to focus on overseas development of restaurants. Pepsi is #1 in sales in takehome market.

1981
PepsiCo passes $7 billion in sales. Pepsis got your taste for life!" is the new campaign. PepsiCo launches PepsiCo Food Systems (PFS), its restaurant supply company. PFS is sold to AmeriSource in

1997."Give me Dew" succeeds the slogan "Reach for the Sun, Reach for a Mountain Dew."

1982
Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introduced. Inauguration of the first Pepsi-Cola operation in China.

1983

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The Bottler Hall of Fame is established to recognize the achievement and dedication of international bottlers. Dew It to It," theme is incorporated to brand Mountain Dew.

1984
PepsiCo isrestructured to focus on its three core businesses: soft drinks, snack foods and restaurants. Transportation and sporting goods senses are sold. Wayne Calloway becomes president of PepsiCo. Herman W. Lay Award of Excellence established at Frito-Lay to recognize world-class selling excellence

1985
PepsiCo is now the largest company in the beverage industry. The company has revenues of more than $7.5 billion, more than 137,000 employees. Pepsi's successful "Entertainment Marketing" strategy is extended, with singers Lionel Richie and Tina Turner and actor Michael J. Fox, among others. Pepsi distributes products in China.

1986
Wayne Calloway becomes chairman of the Board of Directors and chief executive officer in May when Donald M. Kendall retires. Pepsi-

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Cola sponsors the first Western-produced consumer commercial in the Soviet Union, appearing during the Goodwill Games. PepsiCo Board of Directors visits the People's Republic of China to mark the opening of Pepsi's second bottling plant in China.

1987
"Mustang," a Diet Pepsi commercial, becomes the first ad ever to appear in a home video cassette. The cassette, "Top Gun," becomes the largest-selling video ever. Pepsi sponsors tours of major music stars, including Miami Sound Machine, David Bowie and Tina Turner.

1988
Pepsi-Cola International enters a landmark joint venture agreement in India. Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It is the world's largest selling snack chips brand. PepsiCo introduces Share Power Stock Option program for all employees, becoming the first large corporation to award stock options too virtually all full-time employees.

1989
PepsiCo acquires Walkers Crisps and Smith Crisps, two of the United Kingdom's leading snack food companies. PepsiCo enters top 25 of Fortune 500 ranking with sales of $15.4 billion, it is number 23. The

Company 1990

has

more

than

300,000

employees.

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PepsiCo stock splits three-for-one. PepsiCo acquires a controlling interest in Gamesa, Mexico's largest cookie company. PepsiCo profits exceed $1 billion for the first time.

1991
PepsiCo acquires an equity interest in Wedel SA, the leading manufacturer of chocolate and confectionery in Poland Snacks now include operations in 23 countries. PepsiCo purchases an equity position in Carts of Colorado, Inc., the leading manufacturer and marketer of mobile merchandising equipment. It is sold in 1995. 1992 PepsiCo purchases an equity interest in California Pizza Kitchen. It is sold in 1997. Pepsi-Cola introduces new "Got to Have It" advertising theme and launches the "Got to Have It" card. Pepsi introduces new slogan "Be Young - Have Fun - Drink Pepsi." Pepsi-Cola begins

distribution of Lipton's line of ready-to-drink teas nationwide. 1993 Frito-Lay launches new Doritos brand Tortilla Thins. Within five months of launch, Tortilla Thins breaks into the ranks of the 10 largest-selling snack chips in the U.S. Pepsi-Cola International introduces Pepsi Max, a soft drink with unique blend of sweeteners that delivers maximum cola taste in a no-sugar product. Frito-Lay nationally launches Wavy

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Lay's Original and Au Gratin flavors. Pepsi-Cola introduces Aquafina bottled water into test market.

1994
Pepsi-Cola is first major soft drink maker to begin producing and distributing its product in Vietnam. PepsiCo sales reach $30.4 billion. There are 470,000 employees worldwide, making PepsiCo the third largest employer.

1995
Pepsi-Cola introduces "Nothing else is a Pepsi" theme line. Pepsi-Cola is top ad scorer in Super Bowl. PepsiCo will introduce Lay's brand potato chips in 20 markets throughout the world. PepsiCo is on-line at http://www.pepsico.com

1996
Pepsi-Cola launches Pepsi World at http://www.pepsi.com "Pepsi Stuff" unveiled. Consumers save points for merchandise. PepsiCo announces plans to spin off its restaurant businesses as an independent publicly-traded company sell its food distribution company and focus on its core beverage and snack food businesses. The spinoff is completed October 6, 1997. Shareholders receive one share in the new restaurant company, Trion Global Restaurants, Inc., for every 10 shares they hold in PepsiCo, Inc.PepsiCo is now a $20 billion company with approximately 140,000 employees worldwide.

1997

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Pepsi-Cola introduces new advertising campaign with the theme "Generation Next." Pepsi-Cola North American bottling operations become a separate unit called The Pepsi-Cola Bottling Co. Pepsi-Cola celebrates 100th Anniversary with first worldwide bottlers conference, held in Hawaii. The event is held during the same time as first bottler's conference.

1998
Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour. PepsiCo products contribute more than any other packaged goods company to the sales growth in U.S. supermarkets, mass merchandisers and chain drug

stores. Tropicana Products, Inc. acquires Alimentos Del Valle S.A., one of Spain's leading chilled juice and soup companies.

1999

Pepsi launches "The Joy of Cola" advertising campaign. In March, The Pepsi Bottling Group, the world's largest Pepsi bottler, begins trading on the New York Stock Exchange. It is listed under the symbol PBG. The $2.3 billion public offering is among the biggest initial public

offerings 2000

in

stock

market

history.

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Pepsi-Cola revives its "Pepsi Challenge" advertising 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. PepsiCo launches Diversity@work

http://www.pepsico.com/diversity website.

2001
Pepsi-Cola Company launches Dole single-serve juices in vending machines, coolers and other retail outlets throughout

the United States. Pepsi-colas flagship brand will have new tagline, The Joy of pepsi. Pepsico introduce new corporate logo. Diet Sierra Mist is introduce.

2002
Frito-Lay introduces Go Snacks, canisters that truly go

anywhere. Tropicana Pure Premium and Quaker Oatmeal launch the Heart and Soul Mates Support Network featuring nutrition tips, motivational messages and coaching advice, to help consumers turn healthy habits into life-long changes.

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2003
Pepsi-Cola launches Sierra Mist nationally. PepsiCo launches "Get Active/Stay Active'' program. Pepsi Vanilla is launched in the United States. Pepsi unveils a new tagline: "Pepsi. It's the Cola." It is the brand's first major campaign shift since 1999 and highlights how Pepsi goes with everything from food to fun.

2004
Wall Street Journal names Indra Nooyi one of 50 Women to Watch (In Line to Lead) Margo Posey, president of the DFW MBDC presented Bob Gonzalez with Presidents Award for meritorious service to the council over the years. PepsiCo is mentioned among 26 companies that earned Governance Metrics Internationals (GMI) highest

governance rating. National Minority Supplier Development Council (NMSDC) names PepsiCo one of the Corporations of the Year. Minority Business News names PepsiCo Chairman and CEO Steve

Reinemund Executive of the Year. Pepsi-Cola to launch Pepsi Edge, the first full-flavored cola with 50% less sugar, carbohydrates and calories than regular cola. PepsiCo publishes first Corporate Citizenship report in its 2003 Annual Report.

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2005
For the year, reported net revenue up 8% and, excluding the impact of the extra reporting week in 2005, net revenue increased more than 9%. The company recorded a pretax charge $83 million in the fourth quarter of 2005 related to cost reduction action, principally headcount reduction.

Corporate unalloted expenses declined by $39 million in fourth quarter, driven by absence in the current year of a $12million charge related to the 2005 restructuring action, and net favorable impact of certain other corporate items.

The company reported a net tax benefits of $144 million in the fourth quarter,which included non-cash benefits of approximately $600 million , substantially all of which related to internal revenue service examination of companys consolidated income tax returns for the year 1998 through 2002.

2006 Excluding all these items for 2006, the company earning were $3.00 per share in 2006 , an increase of 14%.

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PepsiCo announced that it has agreed to acquire comercio de Doces Lucky Ltda.,a Brazilion snack company. Lucky makes and sales a variety of snack product in Brazil, including the popular brands Toricida and Fofura, which together account for the bulk of the company revenues. The company employs approximately 168,000 people worldwide, and its products are sold in approximately 200 countries. Its principal businesses include : Frito-Lay snacks, Pepsi-Cola beverages,

Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 17 brands that generate $1billion or more each in annual retail sales. Leverages complementary strengths of unilevers Lipton brand and tea know-how with Pepsi bottling and distribution network.

PURCHASE, N.Y.;Sep. 14/PRNewswire-FirstCall/- PepsiCo and unilever announced they have agreed to expand their international partnership for the marketing and distribution of ready-to drink tea products unde the Lipton brand, the worlds best selling tea brand.

The new agreement adds 11 countries to the partnerships existing Lipton ready-to-drink tea business. The business in these countries

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eight in Europe (Germany , Italy, France , Netherlands, Switzerland, Austria, Belgium , and Portugal ) as well as Korea, Taiwan and South Africa- had combined systems sales to the trade of around Euro 300m in 2006. The new agreement effectively completes the partnership and creates the leading global ready-to drink tea business.

2007
TO Support the Declaration launched today at the United Nations calling for the achievement of the Millennium Development Goals

(MDGs) by 2015 . INDRA NOOYI, Chairman and CEO of PepsiCo, supported the Declaration, which was announced by UK Minister Prime

Gordon Brown, and urged the private sector to join with

governments, civil society and faith groups to work together toward meeting the MDGs.

PepsiCo , Inc. has been named a global sustainability leader as it was added to the Dow Jones Sustainability World Index (DJSI World) for the first time this year, as welll as retaining its place on the Dow Jones Sustainability North America Index (DJSI North America).

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The U.S. Enviromental

Protection Agency (EPA) has named

PepsiCo (NYSE: PEP) as a 2007 ENERGY STAR Partner of the year for outstanding energy management and reductions in greenhouse gas

emissions , and the agency honored the company yesterday at an awards ceremony in Washington, D.C. 2008PepsiCo Foundation announces two major new grants to WaterPartners and Safe Water Network programs to provide access to safe water and sanitation in developing countries. PepsiCo Foodservice and Naked Juice Expand Starbucks Presence .

Gatorade Sports Science Institute Gathers World's Leading Researchers on Protein Nutrition

PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award

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OBJECTIVE OF STUDY

40

OBJECTIVE OF STUDY

The purpose of research is to discover answers to questions through the application of the sciencetific procedures the main aim is to

find out the truth which is hidden and which is not been discovered yet . Our main objective is to find out the solution of those problems which are the main barriers in the promotion of Pepsi in rural market. Our others sub objectives are: To find out the sources of promotion for rural market. To find out the activated villages and their activation year. To locate the potential rural market for Pepsi. To identify new sources for sales promotion

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The RDP and mapping program is designed for the promotion of soft drinks in rural areas and overcome the main barriers for soft

drinks market in rural ,the work which is being done for RDP is described as fallows . To find out the activated and non activated areas ; initially we see that how many areas are activated and how many are non where

activated . Here activated areas are those areas and villages

soft drinks are being sold in the same way those villages are under non activated areas where soft drink is not being sold , for activated village there must be at least one or more outlets . along with this

year of activation is also noted interaction with the distributors and sub distributor ; distributor , sub distributor and retailer can tell the

real problem faced in the market because they are in the in the direct contact of consumer and know their liking and disliking in a better way, Problems and their solution in rural market ; ultimately we have to increase the sale of soft drinks in rural areas for this it is

mandatory to remove the problems like transportation consumer awareness .these problems could be find out by doing survey of that particular area .

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ORGANIZATION STRUCTURE
EXECUTIVE DIRECTOR

V.P. (Operation) (U.P.Unit)

Sales Manager

M/s Manager

CFO Plant Manager

Personal Manager

Asst. Sales M/s Executive

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Sales Executive Asst. personal Manager Finance A/C Plant SS Sales A/Cs

Shipping

Quality

Production

ORGANISATION HIERARCHY
SALES DEPARTMENT UNIT HEAD

TDM ADC CE

TDM ADC CE

TDM ADC CE

TDM ADC CE

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CE CE RSP TDM ADC CE RSP

CE CE RSP

CE CE RSP

CE CE RSP

(Territory Development Manager) (Accounts Development Coordinator) (Customer Executive) (Rural Sales Promoter)

No. of CEs Depends upon the size structure of a territo

SUPPLY CHAIN OF PEPSI IN RURAL AREAS

Plant Warehouse Distributors

45

Direct Routes S.D. Retailers S.D. S.D. S.D. S.D. Retailers

Consumers

Consumers

46

Pepsis entry in INDIA

Pepsi cola entered in India in April 1989 by setting operation in beverages snacks and agribusiness. At this time parley had 70% of the market share of the total soft market. Initially it faced some trouble in entering the market due to strong resistance from most of the domestic soft drink industry and advocates of the Swadeshi. The Indian economy was not liberalized and proved to be another barrier. Pepsi removed these barriers by. 4. Promising the governments to focus considerable selling efforts in the rural area to help economic developments. 5. Promising to help boost the exports of agricultural product. 6. Offering to transfer the food processing, packing and water treatment technology to India.

Success Story in INDIA

Started as an exclusively franchise operating and a non COBO company it gradually expanded its wings. It has now five COBO, Pepsi is a broad based food and beverage company, delivering more than 60% of its sales and operating profits from its snacks foods and resultant business. Established with a turnover of $20 billion in 1989 Pepsi co has achieved a continuing record of growth.

47

This record is based on high standard of performance, distinctive competitive strategies superbly executed and the personal and professional integrity of its people business practice and products. In 1997 Pepsi co spun of its three principal restaurants business-pizza-hut, KFC and TACO bell into and independent publicly held company called TRICON Global Restaurants Inc. Pepsi Co. Inc. world headquarter is located in purchase. N.Y., approximately 45 minute from New York City.

Pepsis Business
Pepsi has its operation in 3 fields1. Non alcoholic beverages 2. Snack foods 3. Fruit juices PepsiCos beverage division includes Pepsi Cola North America Pepsi Cola International PepsiCos operations were established in 1988 as franchisee based set-up under Pepsi Cola international In India Pepsi operates as: Pepsi Foods Ltd. Pepsi Co India Holdings Pepsi India Marketing Company

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Pepsi Cola is a world class company in low margin high volume business, which means sales of high volume of the product in order to be profitable and compete in the global market. Pepsi Co deals in carbonated soft drink market CSDs fall in two categories-cola and flavor. Colas concentrate on Pepsi where as flavors deal with orange and lemon and other flavors. In order to successfully manage these Pepsi operate through: COMPANY OWNED BOTTLING OPERATIONS (COBO) FRANCHISE OWNED BOTTLING OPERATIONS (FOBO) JOINT VENTURE OPERATION (JV) In COBO Pepsi and own the business i.e. makes sells and delivers the product. This allows for consistent process and ensures quality of our products. In JV Pepsi and at least one party share the ownership in a local bottling operation. This helps Pepsi in maintaining strong trade mark on the other partys recourses and expertise. Concentrate is the critical ingredient in the production of Pepsi product and is manufactured in 15 plants around the world including India. This concentrate is mixed with water to make Pepsi product.

PCI WORK FLOW CONCENTRATE ON 3 ACTIVITIES

Selling Pepsi cola Making Pepsi cola

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Delivering Pepsi cola, Pepsis three core brands are Pepsi Miranda and 7-Ups .

Soft Drink A Brief History

From 1976 till 1990 all the soft drink in India were indigenous i.e. they are Indian brands. Since 1976 the year of exit of coke from the country to the year 1990 was the period when the soft drinks market was dominated by Parle were Thums-up, Limca, Gold spot, Citra and Maaza. Other soft drinks were campa cola Campa-Orange, Lemon Mc dowells, Thrill Sprint, Crust and Mc Dowells soda. Modern food industries (Govt of India under-taking) have its product 77. At the same time various regional soft drink brand played an independent role in their respective territory e.g. Duke, etc. But from June 3, 1990 the launch of Pepsi in India, the whole scenario of soft drink industry has changed. There has been a re-entry of Coca-cola in October 1993. Being multinational and broadly recognized all over the world both the company has created a soft drink war India either by acquisition (duke by Pepsi and Thums-up Limca Gold Spot Citra, Maaza etc. by Coca-cola) or by introduction of their international brands. Ever since these two giants (Pepsi and coke) have clashed headlong and all other companies have been thrown through

50

the sidelines either as every insignificant player or as marginal regional player. Indias per capita consumption soft drink was serving in 1993 which has risen to 5.5% serving in 1995-1996 soft drink industry has are recorded growth food 20% to 25% as compared to 5% to 6% growth in 1994. With the anticipated direct involvement of coca cola ithe immediate future all to aspects have of distribution, acquired a marketing very

administration seem

sophisticated and highly scientific and looking at long

today the companies are investment i.e. by

term contribution by way of

providing the visicoolers EBC making new outlets and introducing new flavors and packs. This creates more consumer loyalty by improving quality in their service, which will soon transfer into

market strength high share and enahance volume and thus building company imagE

51

GLOBAL STRATEGIES ADOPTED BY WHICH PEPSI BECOME NO.1 DRINK TODAY

Pepsi policy of listening closely to its salesman. Pepsi reacts immediately to suggestions. PepsiCo is providing financial support to the week bottles in the form of interest free loans to upgrade their operation.

Pepsi selling marketing effort has become cola centric. Apart from the capital cost of the plant and equipment, the bottler has to invest in bottles, carat, trucks and the cooling structure ( Visi cooler, icebox) at the retail point.

To plan the proper utilization of manpower. To identify the activities where we can save time. Emphasis should be given on quality value and satisfaction. Customer retention is essential. More emphasis on direct and on line marketing

Advertisement and Add Concept Advertisements are cost effective means to communicate messages and ideas to build brand preferences and awareness and it is one of the most important tools which a company uses to direct persuasive

52

communication to directive buyers in public or to educated people to avoid hard drink and so on. The basic objective of advertising is sales promotion sales promotion expenditure have been increasing as a percent of budget expenditure annually and the growth is likely to continue in future. Our celebrities signed by the PepsiCo are as follows:

For PepsiCo.
Cricketers:Sachin Tendulkar Rahul Dravid Mohd. Kaif. Yuvraj singh Harbhajan singh. Sourav Ganguly. Zaheer Khan Ajit Agarkar Cine Stars Kareena Kapoor Shahrukh Kajol Adnan Sami Fardeen Khan

53

Amitabh Bachhan Govinda Rani Mukherjee. Tennis Stars :Leander Paes Mahesh Bhupati Football Players Cyrus Broacha Bhaichung Bhutia

54

LOCATIONS OF BOTTLING PLANTS OF PEPSI IN INDIA

55

PRODUCT OFFERED

56

Pepsi Cola Brands

Pepsi-Cola Caffeine Free Pepsi Diet Pepsi Caffeine Free Diet Pepsi Pepsi Twist (regular & diet) Wild Cherry Pepsi Pepsi Blue Pepsi ONE Pepsi Vanilla Diet Mountain Dew Mountain Dew Code Red Diet Mountain Dew Code Red Mountain Dew LiveWire Mountain Dew Blueshock Mountain Dew AMP energy drink Mug Sierra Mist (Regular & Diet) Slice Lipton Brisk (Partnership) Lipton Iced Tea(Partnership) Dole juices and juice drinks (License)

57

FruitWorks juice drinks Aquafina purified drinking water Frappuccino ready-to-drink coffee (Partnership) Starbucks DoubleShot (Partnership) SoBe juice drinks, dairy, and teas SoBe energy drinks (No Fear and Adrenaline Rush) Outside North America Mirinda 7UP (International) Pepsi Limn Kas Teem Pepsi Max Pepsi Light Manzanita Sol Paso de los Toros Fruko Evervess Yedigun Shani Fiesta D&G (Licens l Fruit

58

SWOT ANALYSIS

Strength Good company Image Well trained and experienced workers and executives are available Strong distribution network Brand Pepsi alone cover the big market. Adopted two types of distribution channels (Direct Route and indirect Route) Weakness Less personal contact with Retailers. After Sales service is not so good. No proper visit by officers to outlets. The products are not getting at time during season. Opportunity High growth rate for soft drink market Rural areas great population of Youths in U.P. Pepsi has good market share in rural area of India. Therefore there is a need of maintaining this share in future.

59

Threats High growth of competitors products coca cola brands. Better facilities provided by the competitor to their distributors lead to switch over of Pepsi distributors towards competitors.

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RESEARCH METHODOLOGY

61

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on specific topic. In fact research is an art of scientific topic. Some people consider research as a movement, a movement from the known to unknown. Research is an academic activity and as such the term should be used in a technical sense. research hypothesis comprises defining and redefining problems, formulating and

or suggested solutions ; collecting ,organizing

evaluating data making deduction and reaching conclusion ; and at last care fully testing the conclusion to determine whether they fit the formulating hypothesis . social science define the research as the manipulation generalization of things , concepts to extend ,correct or symbol s for purpose of

or verify the knowledge

aids in

construction of theory or in the practice of an art .research is thus an

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original contribution to t existing stock of know ledge making for its advancement . The systematic approach concerning generalization and the formulation of the theory is also research.

Defining the Problem:

Quite often we all here that problem half solved. This statement

signifies the need research problem properly is a perquisite for any study and is a step of highest important. In fact formulation of problem is mire essential than its solution. In rural sales promotion (RSP) our ma in problem is how to increase the sale of Pepsi in rural areas and strengths the roots of PepsiCo in soft drink industry. A part from this we have it cores the rural area in a peoples way In terms of approach.

Objective of research:
Our main objective is to find out solution of the problems, which are the main barriers in the promotion of Pepsi in rural market . .Our Sub-Objective are: 1. 2. To find out the sources of promotion for rural market. To find out the activated villages and their activation year.

3. To locate the potential rural market for Pepsi. Research design

A research design is the arrangement of conditions for collection and analysis of date in a manner that aims to combine relevance to

63

research purpose with economy in procedure. Here we have used descriptive research design. Since the aim is to obtain complete and accurate information in the said studies. 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 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 The entire set of various segments in the population comprises all the retail store and outlets each retail store in the sampling frame constitute the sampling unit in brief we can say overall sampling is based on 340 outlets.

Sampling design

64

A sample design is a definite plan for obtaining a sample from a given population. If it refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the no of items to be included in the sample. The researcher must prepar the sample design which should be reliable for research study. A part from all that mapping is also being done which covered the entire area of operation. Mapping is nothing but the detailed information about activated and non activated village along with the

activation year of correspondening village across area of operation. We also collected the detailed information about Distributor and sub distributors coverage area. In mapping the detail taken was Name of outlet Village name Name of panchayat Name of block Name of tehsil Name of district Activated /Non Activated Activation year

65

SD name and location Name of Distributor and location.

Universe
The universe is finite universe where number of items is finite in the given problem the universe is finite and whole rural area of Lucknow districts.

Sampling unit
Decision is taken after concerning the sampling unit, sampling unit may be a geographical one such as state district village etc or a

construction unit such as house flat or it may be a social unit a club or school. Here selected sampling unit for study is outlet of soft drink.

Source list
It contains all the items of universe in case of finite universe it is also known as sampling frame.

Size of sample
It refers to the no of items selected from the universe to constitute a sample. The size of sample is 340 outlets of 4 tehsils of Lucknow districts.

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Area of operation Itaunja Kursi road Chinhat Malihabad total

No. of Outlets 70 90 98 82 340

Collections of primary data

The task of data collection begins after a research problem has been defined and research plan chalked out. The primary data are those which are collected a fresh and for the first time and thus happen to be original in character.

We collect the primary data during the course of doing experiments. In given problem the descriptive research is used so we can obtain primary data either through observation or through direct communication with respondent or through personal interviews. For collecting primary data we used observation method, interview method and interview through questionnaire.

Fieldwork
The entire project was divided into five phases and each phase had its individual significance and supplemented each other.

The five phases into which the project was divided were:

67

1. Route Riding 2. Retail Tracking 3. Each Distributor survey 4. Each SD survey 5. Analysis of finding and observations

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PRESENTATION OF DATA

PRESENTATION OF DATA
As we go along in the market we did our research in four steps: 1. Route Riding

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2. Retail Mapping for Rural area Lucknow district 3. Each Distributor survey 4. Each SD survey

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

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2. To gain an in depth knowledge of the merchandising and processing activities of the Route Agents and understand the Beverage market in rural areas. To undertake the comparative study of the various brands available drinks 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 and flavor packs of all existing beverages or soft

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 days in which we had covered 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 RAs 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 merchandising and sales against cash, which was a significant feature

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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 RAs 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. The routes were allocated on the basis of individual areas and the demand of the product in that particular area. The RAs been responsible for the accomplishment of their sales target on their routes and was given incentives on achieving the targets. Not only this, the RAs 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 RAs 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, VISIs (fridges), display boards, glow signboards, wall paintings, banners, posters and other incentives. The RAs had to achieve their sales target and surrender the daily sales proceeds with the concerned Customer Executives along

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with the route planner and billing materials and gate pass along with the details of sales on their route. The entire activities of the RAs was controlled by the Customer Executives, who also assisted the RAs in achieving their targets and were in charge of the sales performance in their assigned areas. A Customer Executive had five to six RAs under him and was responsible for their performances as well. He was also concerned with the promotional activities on his routes and handling of policy matters in the corporate regarding supply to industrial canteens and cafeterias. We as summer trainees were required to study and analyze the activities of the RAs and be familiar with the market. We had been provided Mapping Sheets by the ADC and schedule by own in which we were required to record the observations of the retail outlets on a particular route and full detail about village location. The observations, which were required to be recorded in, were: 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

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billings. Inquiring about the behavior and merchandising of RAs

in accordance with the companies regulations and record complaints against RAs, company or products, if any. Inquire about the performance of various brands and flavors packs and customers 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, VISIs, and also impact of nation wide advertising on brand loyalty by the customers Full detail of promotion means in rural areas. The information so collected was required to be filled in the Mapping Sheet (specimen with the questionnaire) and reported to the ADC along with other information in order of their seriousness.

Retail Mapping for Rural area of Lucknow

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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 rural areas of Lucknow . The new routes, exploring new markets required the decision to be supported with facts and figures which had to be provided by the summer trainees on the basis of the survey conducted in the market and processed data thereof. The retail mapping had to be conducted on the basis of the Mapping Sheet, which had been developed by the Accounts Development Coordinator (ADC) and Customer Executives (CE) of the Lucknow which incorporated the retail outlets, their full address, etc and served as a vital database for all market since then for PEPSI in Lucknow and had to be incorporated in the project in accordance to the companies policies.

Objectives of Retail Mapping:

Assessment of retailers performance. Assessment of the level of promotional measures required for increasing market of PEPSI.

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 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 rural areas of Lcknow into 15 broad categories of SDs and 4 Distributors On Route, Non Existence, Non Potential, Reachable and Non Reachable under the head, Potential Retail Outlets.

The Mapping Sheet comprised of a total list of 340 outlets. The duration for the completion of the mapping took duration of eight weeks. 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 Accounts Development Coordinator. 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 Program and Weak Area Program.

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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 rural market of Lucknow approximately 75% of the market can be said to be strong areas and these areas include the well-developed markets as Bus stops, Crossings, Hats, tae stalls, hotels, etc. For these Strong areas, RDP 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 the products on the outlet, inadequate promotional

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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.

NON EXISTENCE:

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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 :
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 PEPS 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:

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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 reach ability decision had to be taken in context to the accessibility of the vans at these outlets.

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

Each distributor survey

The personal interaction with the distributor to understand the problems faced by him in the promotion of Pepsi in rural area and in activation of new villages problems faced in marketing of Pepsi and there interest in rural areas and should be done by company to promote the Pepsi in rural areas there suggestions.

Each SD survey
The personal interaction with SDs was done to understand the problems and specially work in rural areas. What problems they face from distributor side RSP side cooperation of company and other problems there suggestions for the development of new areas and knowing the routes.

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81

PRESENTATION BY GRAPHS 1:- Do you sell soft drinks? No. of Respondents. Yes No 340 95% 5%

5%

Yes No
95%

INTERPRETATION 1) Most of the outlets sell the cold drinks like PCOs , pan Bhandars and sweets shops in summers season but 5% outlets do not sell any soft drinks. (graph-1)

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2:- Which Brand of soft drink do you sell ? No. of Respondents. Pepsi Coke Others Mixed 340 8% 7% 0 85%

8%

7%

0%

Pepsi Coke Others Mixed

85%

INTERPRETATION 2) The percentage of only Pepsi , Coke and mixed is 8%,7and, 85% respectively. It shows that maximum no of outlets have both the brands for the customer choice and availability o brands.(graph-2)

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3:- What is the main reason to store these brands? Total Respondents Supply Profit Margin Customer Demand Schemes & Offers 340 18% 16% 45% 21%

21%

18%

Supply Profit Margin

16%

Cust. Demand Schemes & Offers

45%

INTERPRETATION 3) Storage of different brands is mainly based on demand 45%, 21% on schemes ,18% on supply and rest on profit margin. (graph -3)

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4. How do you asses the product quality of Pepsi?

Total Respondents Very Good Good Average Below Average

340 84% 12% 4% 0

4% 12% 0%

84%

Very Good Good Average Below Average

INTERPRETATION 4) According to quality 84% of the shopkeepers responded that the quality of Pepsi products is very good , 12% good and 4% average and bellow average 0 so it is clear that quality is up to the mark.

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5:- How do you asses the customer demand for Pepsi products? Total Respondents Very Good Good Average Below Average 340 84% 12% 4% 0

4% 12% 0%

Very Good Good Average

84%

Below Average

INTERPRETATION 5) The customer demand of Pepsi products is very high 84% people prefer the Pepsi products and demand for it .

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6:- What do you think about the profit margin of Pepsi products? Total Respondents High Medium Low 340 1% 35% 64%

1% 35%

High Medium Low

64%

INTERPRETATION 6) The profit margin of retailers is very low 64% retailers say that the margin is low,35% say it is average and 1% say the margin high.

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7:- Are you satisfied with the supply pattern of Pepsi products?

Total Respondents Yes No

340 33% 67%

33%

Yes No
67%

INTERPRETATION 733% are satisfied supply pattern of pepsi and 67% are not satisfied

the supply pattern of pepsi.

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8:- What do you feel about the promotional strategies of Pepsi in rural areas? Total Respondents Very Good Good Average Below Average 340 84% 12% 4% 0

4% 12% 0%

Very Good Good Average

84%

Below Average

INTERPRETATION 8- The promotional strategies of Pepsi are very good according 84% respondents because they get off season discounts. 12%say it is good and 4% say it is average. No respondent said it is below average.

89

9:-Should Pepsi be introduced in new range of products for rural areas?

Total respondents Yes No

340 16% 84%

16%

Yes No
84%

INTERPRETATION 9- 84% of the respondents were not in favor of launching new range of products for rural areas but 16% did the favor.

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10:- What is the best means of promotion for Pepsi in rural areas ? Total respondents (a) T.V (b) Radio (c) Boards & posters (d) New paper (e) Paintings 340 25% 38% 16% 10% 11%

11% 25% 10% (a) T.V (b) Radio (c) Boards & posters 16% (d) New paper (e) Paintings

38%

INTERPRETATION 10- The best means of advertising in rural areas is radio due to its coverage and availability of different bands . after radio 25% say T.V. is helpful in advertising of Pepsi products. 16% posters and banners 11% painting and !0% news paper due to its limited approach in rural areas

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ANALYSIS

92

Analysis of graphs

On the basis of collected data we prepared graphs as per the results we observed the analysis is based on that Most of the outlets sell the cold drinks like PCOs , pan Bhandars and sweets shops in summers season but 5% outlets do not sell any soft drinks. (graph-1) The percentage of only Pepsi , Coke and mixed is 8%,7and, 85% respectively. It shows that maximum no of outlets have both the brands for the customer choice and availability o brands.(graph-2) Storage of different brands is mainly based on demand 45%, 21% on schemes ,18% on supply and rest on profit margin. (graph -3) According to quality 84% of the shopkeepers responded that the quality of Pepsi products is very good , 12% good and 4% average and bellow average 0 so it is clear that quality is up to the mark. .(graph -4) The customer demand of Pepsi products is very high 84% people prefer the t Pepsi products and demand for it .(graph -5)

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 The profit margin of retailers is very low 64% retailers say that

the margin is low,35% say it is average and 1% say the margin high.(graph -6) 67% respondents say that the supply pattern of Pepsi is poor and rest say it is good mainly on direct routs the supply ids good but during summer in interior areas do not get proper supply. . (graph -7) The promotional strategies of Pepsi are very good according 84% respondents because they get off season discounts. 12%say it is good and 4% say it is average. No respondent said it is below average. .(graph -8) 84% of the respondents were not in favor of launching new range of products for rural areas but 16% did the favor. .(graph -9) The best means of advertising in rural areas is radio due to its coverage and availability of different bands . after radio 25% say T.V. is helpful in advertising of Pepsi products. 16%

posters and banners 11% painting and !0% news paper due to its limited approach in rural areas. .(graph -10)

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FINDINGS

95

Findings
In Typical soft drink market, Pepsi is distributed in around 95% of the total rural Area. 1. Rests 5% of the rural areas are not activated. 2. Around 85% of the outlets visited sell the soft drinks of mixed vanity. 3. Around 8% of the total outlets visited sell only the Pepsi products. 4. 45% of the total retailers, store soft drinks products because of cuts demand. 5. Schemes & discounts is another major reason for storage of the any soft drink. 6. Around 84% of the retailers assess the product quality of Pepsi very good.

96

7. About 76% retailers said that the cuts demand for Pepsi pcl. Is very good. 8. Max (around 64%) of retailers said that profit margin for Pepsi products is very low. 9. 67% of retailers are not satisfied with supply pattern of Pepsi.

10. Major portion (51%) of retailers find promotional strategy of Pepsi in rural areas as average. 11. 84% of retailers believe that there is no need of new product for rural areas and company should focus on its pursing brands. 12. Radio (38%) & TV (25%) are best means of promoter of product in rural areas.

97

98

CONCLUSION

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.

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Though, PEPSI has a strong position in Lucknow district with the support of its efficient distribution network, aggressive marketing efforts and advertisements along with attractive schemes but there still exists potential market in rural areas of Lucknow district to be exploited and a suitable Weak Area Program or the Strong Area Program has to be formulated to improve its market share depending upon the area under consideration. Soft drink businesss 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.

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LIMITATIONS

LIMITATIONS

101

Every product has limitations it is wise to point them out instead of glossing over them the analysis and recommendations of the report are extremely crucial to the success of the PepsiCo India holdings (Pvt.)

Ltd. Earnest efforts were made to extract true and genuine information yet the findings are tied up in the following boundaries. 1. The research was conducted on small sample of respondents which is not sufficient to predict a good result. 2. The research was conducted within the specific time duration. 3. The research was conducted in a comparatively small area, which does not represent the overall market position with respect to the psychology of the consumers of the soft drink. 4. Reluctance of retailers of Pepsi of import of any information of some relevance was a major hindrance. 5. The figure given by the retailers totally depend upon word of mouth. 6. Study for retailers survey was taken maximum of outlets.

102

RECOMMENDATIONS

103

RECOMMENDATIONS
1. Company should invest money on advertising through media, Internet and personal selling to promote the Pepsi products, to increase Pepsi consumption in the market its already there. 2. Hoarding on outlets and publication in the prominent magazines help in increasing its awareness among the consumer to evoke the demand of their brand. 3. Policy of replacing of bursts &Leakages should be done timely and the retailer should be accommodated immediately. 4. More attention and concern should be given to the highest selling outlets of Pepsi and the chain should reach to the consumer as well. 5. Allurement and discount schemes should be given to the highest selling outlets of Pepsi and the chain should reach to the consumer as well. 6. More glow sign and broad should be installed. 7. Contests sweep stakes and games should be arranged on regular basis for the consumer involving incentives and prizes. 8. The sales executive should go to each outlet of their route once in a week and try to cover outlet that are in a distributor network.

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9. Free trials of soft drinks should be offered to the retailers and acquaint them about the brands quality and the reliability of the Pepsi. 10. The net and free sample scheme should be the same for net every retailers by the company. 11. Some credit facilities should be given to good sale providing outlets. 12. The company should try to influence the wholesalers of Pepsi in the city offering more profitable scheme and confidence building measures. in rural areas . 13. Company should make proper schedule or particular days for hearing the complaints of their customer and retailers.

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BIBLIOGRAPHY

106

BIBLIOGRAPHY Books Referred: 1.Kothari C. R., Research Methodology Methods and Techniques New Delhi, Wishwa Prakashan,2003 2.Kotler Philip Marketing Management Patparganj,Delhi, Pearson Education,2005

Websites: www.pepsico.com (25-07-09) www.pepsiworld.com (25-07-09) www.google.com (27-07-09)

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QUESTIONNAIRE

108

Questionnaire

1:- Do you sell soft drinks? (a)Yes (b) No

2:- Which Brand Of soft drink do you sell? (a)Pepsi (d) Mixed (b) Coke (c) Others

3:- What are the main reasons to store these brands? -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------4:- How do you asses the product quality of Pepsi? (a)V. Good (b) Good (c) Average (d) Below average

5:- How do you asses the customer demand for Pepsi products? (a)V. Good (b) Good average (c) Average (d) Below

6:- What do you think about the profit margin of Pepsi products? (a)High (b) Medium (c) Low

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7:- Are you satisfied with the supply pattern of Pepsi products? (a)Yes (b) No

If No. Reason:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------8:- What do you feel about the promotional strategies of Pepsi in rural areas? (a)Very Good (d) Below average (b) Good (c) Average

9:- Should Pepsi be introduced in new range of products for rural areas(a)Yes (b) No

10:- What is the best means of promotion for Pepsi in rural areas? (a) T.V (e) Paintings (b) Radio (c) Boards & posters(d) News paper

11:- Your suggestions for motivating retailers to store Pepsi products. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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