A STUDY ON Distribution Channel of pepsi

With reference to Lumbini Beverage vt!Lt" # $isa%hapatnam

A Project Report submitted in partial fulfillment of the requirement for the award of degree in &AST'( O) BUS*N'SS AD&*N*ST(AT*ON By !Avinash +(eg" No: ,--.,,--/.) Under the esteemed guidance of: Dr!B! NAL*N* (Assistant Professor)

0*TA& *NST*TUT' O) &ANA0'&'NT 0*TA& UN*$'(S*TY $*SA12A ATNA& +-3,-4,56

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D'CLA(AT*ON

hereby declare that this project report entitled !Distribution channel of pepsi " with special reference to Lumbini Beverage vt!Lt" # #isa$hapatnam"% submitted by me to the &ollege of ' (A) *+( (U(, -. )A*A',),*(% #isa$hapatnam% in partial fulfillment of the award of the degree of )aster of Business Administration / also declare that this project wor$ is the result of my own effort and has not been submitted to any other uni0ersity1institution for the award of any other 2egree12iploma% fellowship or similar titles/

#isa$hapatnam 2ate

P/ A0inash Regd/ *o: 1334113354

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C'(T*)*CAT' BY 0U*D'

(his is to certify that this project entitled 7D*ST(*BUT*ON C2ANN'L ON ' S* !with special reference to Lumbini Beverage vt!Lt" % #isa$hapatnam is a bona fide wor$ submitted by &r! !Avinash in partial fulfillment of the requirements for the degree of )aster of Business Administration to &ollege of 0*TA& *NST*TUT' O) &ANA0'&'NT#0*TA& UN*$'(S*TY# $*SA12A ATNA&

+Dr!B! NAL*N*6 (O8'CT 0U*D'

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DECLARATION
% A0inash declaring that all the information gi0en in this project report is true and correct as far as $now/ am also declaring that all the wor$ in this project is done by me and not copied from anywhere/

A0inash Academy of )anagement +tudies #i6ag/

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CERTIFICATE
(his is to certify that &r! Avinash who is the student of Aca"em9 of &anagement Stu"ies# 0itam has completed his project on the topic 7A Brief Stu"9 of 'ffectiveness of Channel of Distribution of epsi ro"uct in $i:ag; from Lumbini Beverages vt! Lt" % under my guidance/ 8e has done this project by himself/ wish him success in future/

)r/ )anish +ahay 9)ar$eting 2e0eloping -fficer) P,P+ % AP

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PREFACE
(here is a famous saying !(he theory without practical is lame and practical without theory is blind/" (his modern era is era of consumers/ &onsumers satisfy themsel0es according to their needs and desires% so they choose that commodity from where they e:tract ma:imum satisfaction/ t has been identified that in the beginning of 31 st century the mar$et was obser0ed a drastic change/ (he successful brand presents itself in such a way that buyers buy them in special 0alues which match their needs/ )ar$eting is an important part of any business and ad0ertisement is the most important part of mar$eting/ +ummer training is an integral part of the P'2) and student of )anagement ha0e to undergo training session in a business organi6ation for ; wee$s to gain some practical $nowledge in their speciali6ation and to gain some wor$ing e:perience/ -ur institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospecti0e managers/ (o the emphasis on practical aspect of management education the faculty of Academy of )anagement +tudies% 'itam has with a modern system of practical training of repute and following management technique to the student as integral part of P'2)/ in according with the abo0e obligation under going project in !<umbini Be0erages P0t/ <td/ 8ajipur/ (he title of my project is 7A Brief Stu"9 of 'ffectiveness of Channel of "istribution of epsi pro"uct in $i:ag; &ertainly this analysis e:plores my abilities and strength to its fullest e:tant for the achie0ement of organi6ation as well as my personal goal/

(Avinash) ;
Academy of Management Studies, Gitam

ACKNOWLEDGEMENT
want to render my ac$nowledgement to the following distinguished persons who helped me in completing my project wor$ successfully/ ta$e this opportunity to sincerely e:press my profound gratitude to Dr!B!NAL*N*% A++ +(A*( PR-.,+--R% 2epartment of )BA% who ha0e been our project guide and who ha0e helped me in preparation of the project report/ am highly indebted to the )anagement of Lumbini Beverage vt!Lt" for permitting me to do the project/ )y special than$s to &r!&!1 (ASAD 98R )anager)% $isa%hapatnam# for allowing me to underta$e this project and for all the facilities pro0ided to me% and for gi0ing encouragement% inspiration and guidance/ also than$ all my family members and friends for their cooperation and encouragement during the project/

+ !Avinash6

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CONTENTS

Title Chapter ,! *ntro"uction to the Stu"9 -bjecti0e of the +tudy mportance and rele0ance of the +tudy

+cope of the +tudy )ethodology used in the study <imitation of the study Chapter -! *ntro"uction of the Soft Drin%s in *n"ia 8istory of +oft 2rin$s in ndia 8istory of Pepsi Production Process Product )anufactured and )ain &onsumer Chapter /! Organi:ational Structure 8istory and -rgani6ational +tructure of <umbini Be0erages P0t/ <td/ #i6ag Chapter 5! Chapter .! Chapter =! Chapter >! A Theoretical frame <or% of Channel of "istribution Channel of "istribution of Lumbini Beverages vt! Lt"! erformance of A Conclusion an" Suggestions

?uestionnaire

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CHAPTER 1.
INTRODUCTION TO THE STUDY
Ob@ective Of The Stu"9 *mportance An" (elevance Of The Stu"9 Scope Of The Stu"9 &etho"olog9 Use" *n The Stu"9 Limitation Of The Stu"9

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Academy of Management Studies, Gitam

INTRODUCTION TO THE STUDY

@hen )r/ Rajee0 'andhi came into the power as Prime )inister of ndia% then it was e:pected the liberali6ation of ndian economy/ (his was the e:pectation of his modern concept regarding e0ery wal$ of life/ @hen Pepsi has appealed on our collecti0e consciousness of few years ago to be more e:act in April 1?>?/ @hen it set up operation for be0erages snac$ foods and e:port business/ (he establishment of )ultinational &ompany Pepsi was supposing to prediction in present ndian business scenario/ 2espite lo0e for ones own motherhood and traditional concept of ndian people it was assumed that it is 0ery hard to ma$e and create taste and preference about soft drin$s but despite of ha0ing so many confusion% no one was able to assume such a wide acceptance and it was Pepsi&o/ @ho could be able to penetrate in ndian soil and it was the Pepsi that has got not only a place in ndian hospitality% but also ta$en place of traditional sharbat of lemon and sugar/ And needless to say !'eneration ne:t has become the slogan of the day/" (he first managing director was )r/ Ramesh #anagal but present is )r/ P/)/ +inha in ndia/ 2uring these years be0erages begin an e:clusi0ely franchise operating be0erages now has fi0e company owned bottling operation 9&-B-) the business e:pects to grow three times faster than the industry growth rate 1??4 and its 0ision is to become *2 AA+ B,+( &-*+U),R PR-2U&( &-)PA*B in all aspect/ (he snac$s business has seen some major success and going for leadership too/ Pepsi is a leader in the snac$s food business/ (he di0ision plans to introduction wide range of sna$es in to ndian mar$et in the ne:t three years/ (he restaurant business has also come Centuc$y .ried &hic$en 9C.&) has opened its first outlet at Bangalore Pi66a but it also e:pected to open restaurants shortly city wise/ @hole of the operations of Pepsi in ndia has made a rapid change in ndian life style% which is resulting in fast food life/ Pepsi is a world leader in restaurant D soft drin$ whether it is in <ondon or in <udhiyana% America or Ahamedabad% Berlin or Bombay% Paris or #isa$hapatnam% )anchester or )adras/ 1E
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Pepsi company has pumped in Rs/ 5EE crores 9F ?4 million) as fresh capital and has recently recei0ed permission from the foreign in0estment board in Rs/ 5EE crores 9F?4 million) more/ (he in0estment phase will continue and could add unto Rs/ =EE crores o0er the ne:t three years/ (he figure is not cast in stone if 0olume e:ceeds according to e:pectation/ (hey will increase capital e:penditure/ Apart from these things there is an e:pression which can not 0erify easily that is Pepsi has made qualitati0e gains/ (he foremost is its image from being perennially seen as a loosing company itAs now got the image of being a winner/ (his major turn around is not small achie0ement considering that since it was established in 1?>? ta$ing the hard ship route prior to liberali6ation and weighed down by e:port commitment/ Pepsi has won more battles than it has lost/ n April 1??5 #oltas and Punjab ArgoAs sta$es were bought o0er con0erting Pepsi foods from a three way joint 0enture to be a fully owned subsidiary wee$ bottlers who did not ha0e the financial capacities were gi0en massi0e support in the form in interest free loans to upgrade their operating capacity / But the strategy which has pro0ed to be winner was the position% Pepsi decided to ta$e in &ompany -wned Bottling -peration 9&-B-)/ .or this another subsidiary Pepsi&o% ndia holding was set up as an in0estment 0ehicle% capitali6ed ?4 million dollar/ @ithin a year 1??7 Pepsi has bought o0er 4 bottlers including du$es in )umbai% which was running in )aharastra which has been bought o0er from #oltas high speed imported lines with a speed of ;EE bottles per minute was installed in 2elhi/ Pepsi has a strong franchisee in the GaipuriaAs of Pearl drin$s/

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OBJECTIVE OF THE STUDY

)anagement is a course which teaches the student to get the wor$ done properly from different a0ailable sources 0i6/ man% machine% material% money etc/ +o there can be a satisfaction from the organi6ation side and the wor$ers side who play a significant role in achie0ing success/ +o far the fulfillment or the management course% it gi0es emphasis to project wor$ and students learn how to plan in practical terms rather in terms of theory only/ +tudent tends to de0elop analytical and problem sol0ing s$ill/ @e necessary become moti0ated and competiti0e% in fact all the learning that goes on for the two year term become so much the part of our thin$ing that we de0eloped a well all rounded personality/ (he following are the objecti0es and purpose of the studyH i) .or the fulfillment of ost 0ra"uate Diploma in &anagement + 0D&6 programme as reali6ed by the Aca"em9 of &anagement Stu"ies# 0itam! +A*CT' approve"6 ii) (o care and contact with the wor$ing of an organi6ation and to see the different types of mar$eting acti0ities/ (he main emphasis is on the "istribution Channel aspect of the organi6ation/ iii) @hate0er the subject taught in the class room of P'2) course that is completely theoretical/ +o during the training period we compare how the mar$eting research 9sales) acti0ities 9practical) of our organi6ation with the theories/ i0) .ind the depth and width of distribution channel adopted by Lumbini Beverages competitors/ 0) (o ascertain the consumer brand perception of cold drin$s with respect to price% product% quantity and ad0ertising/ vt! Lt"! $i:ag and compare them with those followed by

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IMPORTANCE AND RELEVANCE OF THE STUDY

&old drin$s were started with the idea of quenching the thirst of the persons tra0eling/ t was also felt that reliable good water was not a0ailable e0erywhere/ +o people would really on their pac$ed bottle and with this idea its ma$ers made these drin$s a0ailable mostly% at those places where water was not a0ailable i/e/ on highways and long distance trains/ But slowly and slowly with its beautiful taste these become 0ery popular and now they are a0ailable not only in the mar$et and street corners% but also people ha0e started $eeping it in their house/ (he credit of populari6ing the soft drin$ goes to &oca &ola/ (his was the drin$ which is li$ed by all ladies% gents and children/ *ow dayAs soft drin$s are quenching thirst loo$s more oftenI they are ta$en due to habits/ 'old +port is considered as the first branded soft drin$s% established 45 years ago before all empowering &oca &ola faced competitions and its euphoric image built up in the western countries helped it get ready clientele and clamor/ Parle ,:port P0t/ <td/ is regarded as the first ndian &ompany introducing <imca a leman drin$ complementary to it this has also introduced &ola Pepone which was withdrawn in the face of tough competition from &oca &ola/ @hen &oca &ola bid a .arwell in 1?==% ndian mar$et was open for 0arious new forward publishing different brands in the mar$ets/ Parle people introduced their &ola% (hums Up with a mighty saying !8appy days are here again" as if happy days went away with &oca &ola/ Pure drin$s of 2elhi also without lasing much introduced pure drin$s were producing and mar$eting &oca &ola earlier &ampa &ola with &ampa orange and &ampa lemon/ )odern Ba$eries entered the mar$et with 2ouble &ola +e0en% )ohan )a$ings with )erry D Pl$up and )c2owell with (hrill% Rush and +print/ (his is ndian mar$et where there was no competition and high 0oltage ad0ertising was on each one was trying their best to become number one company with JAA class product in the field of +oft 2rin$ business/ *ow after a long gap go0ernment of ndia had gi0en permission 17
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to &oca &ola% which joined with Parle to do business in ndia/ (hey are trying their best to regain prestige which it had before/ (he much ri0al of Parle is Pepsi an American concern/ t started business on the ndian soil just a few years ago/ (oday% it has occupied ;3K shares of +oft 2rin$s mar$et in ndia/ *ow Pepsi is going all out to pro0e that they are the best/ But now due to some factors competition among them has become stiffen/ +o in this way the important acti0ities ha0e increased/

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SCOPE OF THE STUDY

(he main scope of this study is to ascertain the effecti0eness of channel of "istribution and 0arious methods to increase the sales 0olume of the concern/ (he methods include regular information to the buyers creating a brand position in the mar$et and ta$ing measures to ma$e the brand remain in its position/ -ne of the important aspects of this study is also to increase the mar$et segment for the product/

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METHODOLOGY USED IN THE STUDY

!)ar$eting Research is the systematic designing% collection% analysis% and reporting of data and finding rele0ant to a specific mar$eting situation facing the company/" (he present study of +oft drin$s mar$ets in all o0er #isa$hapatnam is based on sur0ey methods/ n sur0ey methods% there are two types of sur0ey/ -ne is &ensus )ethod and another is +ampling )ethod/ n this sample sur0ey methods ha0e ta$en only a small part of the whole and data collected from the small part are made applicable to the whole i/e/ ha0e ta$en 0i6ag and some adjacent area of 0i6ag li$e dabagargen% 0i6ag &ity etc/ @ithin the time limit% tried my best to select the sample representati0e of the whole group/ 2uring my training% maintained different chart for different routes during my dealer sur0ey/ ha0e collected data from the distributor of #i6ag/ Data Sources Primary data collection in0ol0ed distributors% retailers and consumers Research Approaches Research nstrument Sa !"in# P"an Sampling Unit Sampling si:e Sampling proce"ure Contact &etho" questions/ : : : : 2istributors E3 Retailers 54E &onsumers 11EE : : +ur0ey nter0iew +chedule

Purposi0e +election Personal nter0iew used multiple choice question and ran$ing system

n inter0iew schedule

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LIMITATION OF THE STUDY

As was as$ed to carry on my 0ocational training i) ii) found the following limitations

during my training period/ +o could not collect all information regarding my topic/ +hortage of time factor was one of the biggest constraints/ )ost stress was gi0en on the primary data as it was difficult to collect secondary data from the organi6ation and distribution since it is difficult to ascertain the authenticity of their statements/ iii) All the obser0ation and recommendation will be made on the feed bac$ obtained from sur0ey/

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CHAPTER$%
INTRODUCTION TO THE SO&T DRIN' IN INDIA
2istor9 Of The Soft Drin% *n *n"ia 2istor9 Of epsi ro"uction rocess ro"uct &anufacturing An" &ain Consumers

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HISTORY OF THE SOFT DRINK IN INDIA

&hristopher &olumbus as a tra0eler of world found a lot of new things which was not in the eye of the world community which is now in our history but now if any one does tra0el to whole part of world to get one thing in some form that is Pepsi/ (ra0el to any corner of the globe you are sure to spot a label splashed in bla6ing blue% red and white becoming you to some !+ugared water"/ (his dar$ coloured drin$ @illy)illy has today become nothing but spot of an international anthem with young and old% rich and poor wants for a sip and saying !Beh 2il )ange )ore/" 'old +pot is considered as the first branded soft drin$ established 45 years ago before all empowering &oca &ola entered the country to dominate the scene/ t faced no competition and its euphoric imaged built up in the western countries helped it to get ready clientele and glamour/ Parle ,:port P0t/ <td/ is regarded as the first ndian company introducing <imca% a lemon drin$ complimentary to there well established 'old +pot in 1?=E which got moderate success/ 8owe0er% before this% he had also introduced &ola Pepino which was withdrawn in face of tough competition from &oca &ola/ @hen &oca &ola bid farewell in 1?==% ndian mar$et was open for 0arious cold drin$s se0eral companies came forward publishing the different brands in the mar$et/ Parle people introduced their &ola (humps Up with a mighty bang saying !8appy days are here again" as if happy days went away with &oca &ola// Pure drin$s of 2elhi also without losing much time introduced pure drin$s were producing and mar$eting &oca &ola earlier &ampa &ola along with &ampa orange and &ampa lemon/ )odern Ba$eries entered in the mar$et with the 2ouble +e0en/ )oharn mea$ings with )erry Pi$up and )c2owell with (hrill% Rush and +print in ndian mar$et where there was no competition pre0iously/ A cut throat competition and hea0y ad0ertising was on/ ,ach one was trying their best to become the number one company with JAA class product in the field of soft drin$ business in ndia/ (he much ri0al of Parle is Pepsi an American concern/ t started business the occupied nearly 4EK share of soft drin$s mar$et in ndia/ *ow% Pepsi is going all out to pro0e that they are the best/ 3E
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HISTORY OF PEPSI
Pepsi&o is a U+A based company ha0ing its head quarters at *ew Bor$ with the net worth of F5EH7E million/ (he a0erage sales of the company are appro: ?E million bottles per month/ Pepsi made it first international mo0e in Russia in 1?4?/ 2uring the Chrushche0 era% within 53 years Pepsi emerged as the biggest competitor for &oca &ola/ Pepsi is a0ailable in 144 countries/ n any soft drin$% on the globe Pepsi food is one of the largest soft drin$ companies in the world with its headquarters in *ew Bor$/ t was in0ented by Pharmacist &ulab 2/ Baradham in 1>?> to cure the disease !2yspepsia"/ t is from this word that its name was related to Pepsi/ +oon it entered the American mar$et as soft drin$% which at that time mostly dominated by &oca &ola% but soon Pepsi able to dominate the &ola mar$et% and there after it ne0er loo$ed bac$/ Pepsi and &oca &ola are engaged in ferocious cola war that has ta$en the whole world by storm/ Pepsi entered the ndian soft drin$ in Canpur in 1?>> and began its production in )ay 1??E and soon it was gi0ing the local contenders run for their money in soft drin$ mar$et/ t comes out with da66ling mar$eting inno0ation that roc$ed the cola mar$et% li$e selling the product through function Pepsi outlets/ ts ad0ertisement agency was !8industan (homson Association" 98(A)/ ts ad0ertisement budget for 1??4H1??; was 0alued at Rs/ 37 crores which is li$ely to be increased manifold in coming years/ Pepsi food is one of the largest and best foreign in0estments in ndia/ (ill today it has in0ested Rs/ 4EE crores in ndia to de0elop the local mar$et/ Pepsi has distributed e:clusi0e franchises in ndia to bottle its total product/ (here are 3> bottling plant of Pepsi in ndia/ +ome are directly controlled by Pepsi and rest is under 0arious franchisees/ Pepsi stands 41st position among the fortune 4EE companies of the world/ ts total capital is appro: F5EEE crores and total sales annually is worth F5= crores/ ts total profit in the year 1??;H?= was worth Rs/ 74> crores appro:/ (he total number of employees engaged in the business is 74/34 la$hs globally/ 31
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PRODUCTION PROCESS
(he process of manufacture of Aerated water 9soft drin$) li$e Pepsi brand product is di0ided into mainly fi0e parts such as ,! Water Treatment -! S9rup &a%ing /! Bottle Washing 5! )illing .! Testing of ro"uct

+,6 (ater Treat ent) $ @ater treatment is 0ery essential in soft drin$s plants as
the nature and quality of water 0aries from place to place/ (o set uniform and standard water the process of treatment is carried on/ (he water ta$en out from bore well by the help of motor pump and pipe line are collected in storage tan$ where is pre chlorinated by chlorinators and by the help of pipe lines comes to treatment tan$ called coagulation tan$ where to this water solutions of different strength of bleaching powder% ferrous sulphate% hydrated lime are added through dosing pump to reduce al$alinity% hardness% $ill the bacteria /(he chemical are mi:ed by mechanical stripper and then the suspend mattress settle down as sludge and clear water passes to retention tan$/ .rom this tan$% the water passes through sand filter containing fine sand and pebbles and carbon filter containing granular carbon and finely through water polisher% micron filter% and U# lamp to ensure clear and sanitary water for use/ .urther water used in bottle washer and boiler need softening /for this purpose %the water from storage tan$ %after passing through two filter beds contain fine sand and granular carbon respecti0ely comes to pass through bad resin were it is softened /this soft water is essential to use in and bottle washer to reduce scale formation inside the machines/

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+-6 S*ru! +a,in#)$ .or syrup ma$ing of particular brand% calculate quantity of
sugar water acti0ated carbon and high flow super cell $nown as filter aid ta$en in to sugar to enter steam and also filled by a motor with agitator/ +ugar syrup called rawHsyrup is prepared by dissol0ing the sugar with continuous stirring and heating by steam supplied by fired boiler/ (his hot syrup by the help of pump is filtered through a filter press attached with a series of quality filter paper to separate out carbon particles/ &lear hot syrup by the help of ++ pipe lines passes through water P/8/,/ for cooling and the then another P/8/,/ circulated by glycol for further cooling/ (he chilled syrup comes to a mi:ing tan$ to use calculating of sugar quantity by Bri: 8ydrometer% concentrate added and mi: thoroughly by a mechanical +tirrer fitted to the tan$/ (his syrup is now finished syrup ready for use/ (he concentrate mainly% the liquid part are $ept in a cold store% the temperature of finished syrup is also maintained by airHconditioner/ All the containers used for syrup ma$ing are cleaned and saniti6ed by +odaHBiH&rab% strong chlorine solution and hot caustic soda solution/

+/6 -ott"e (ashin#) Bottle washing is an important part in soft drin$ plant/ (he
empty durable and returnable bottle used are returned from mar$et in plastic carats are fed to a bottle washing machine 9washer)/ (he machine has double end system with circular chain to carry the bottles/ &austic soda (riH+odium Phosphate% +odium 'lausonate is adding to the caustic by the supplied/ (he &austic tan$ filled in with water heated by steam supplied by the boiler/ (he empty bottles enter to the hot &austic tan$ in one end and after being cleaned by hot &austic solution and finally washed with water through spray jets fitted are discharged in other end/ (he washed bottle proper inspections are +U 51? and +U >45 used for con0eyor cleaned and smooth running of chain carrying bottles/ +U 3;E and +U ==5 is used for bottle cleaning% shining% and mold remo0ing/

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+56 &i""in#) $ .inished syrup and treated water lime are commi:ed to a dosing
pump which mi:es syrup and water with ratio of 1:4 and the syrup mi:ed with water enters to carbonator tan$ to mi: &-3 gas% which is preser0ed in cylinder for use/ (he cylinders are connected through &- 3 manifold to tan$ to use requisite quantity of gas/ (o control &-3 pressure and temperature of liquidI we used recording control 9(aylor)/ (he syrup passed through a P/8/,/ which is called itself by circulation of chilled glycol supplied chilling .H33 gas used/ (he syrup being chilled easily mi:ed with &-3 gas and enters to filter for bottling/ (he filter is connected with filling 0al0es and lift cylinders/ (he lift cylinder functions by pressure of air supplied by an air composer/ (he syrup is $nown as be0erage in this stage is filled in the cleaned bottles which are durable in nature and returnable by buyer filling machine 9filter) by a counter pressure of carbon dio:ide gas/ After be0erage filled in bottle it goes to the crowner where with the help of crown croc$s the bottles are sealed 9crowned) to project the carbonation% fla0or% outside contamination and spoilage/ (he finished products are coded by a coding machine and inspected properly by inspection light while passing through the con0eyor where finished product are accumulated enters to carat washer machine and it is washed mo0es through the con0eyor where finished product are accumulated/

+.6 Testin# o. !ro/uct)$ .inally the finished syrup during bottle is tested in
laboratory to meet the parameters and also to get a standard and quality products to maintain the standard and information and uniformity in products the sugar contents and carbonation in the bottle are chec$ed in regular inter0als by Bri:H hydrometers% Refrectometer and pressure gauge/ (he dead weight tested is used to calculate pressure gauge to $now the correct pressure/ (A D Ph are tested by digital Ph meter/ ,lectronic digital balanced is used to weight chemical to conduct test in lab/ (he purity of &- 3 is chec$ed by &-3 purity tester/ (he chlorine comparators/ (he microbiology test of the product and water used in syrup ma$ing and production are also done to ensure that the product is free from 34
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any bacteriological contamination/ (o conduct the micro test hot sterili6er incubator% autocla0e% pads filter membranes% media are produced and used/ (he 2iesel generator is operated in case of electricity failure for smooth operation of the plant/ (o drawn electricity for the +tate ,lectricity Board the transformer is used/ The steps involve" in the pro"uction process areA4 .irst the for$ lift supplies the empty bottles which are collected from the distributions/ (hen depalletising is done i/e/ separating cases filled or empty bottles from the wooden plan$s/ Uncasing is done by separating empty bottles from the cases1carats/ ,mpty bottles are then fed into the bottle washer where stream with some chemical is used for washing/ @ashed bottles are then send to the filler where premi: 9&omposed of syrup% treated water bul$ &-3) is filled in it/ (he whole concentrated is chilled with glycol before filling and then crowning is done/ (he filled bottles are passed through in$jet coder for printing price and date/ (hen again the filled bottles are send for final light inspection and from there they are collected on a table/ <astly the filled bottles are arranged in the crates 9casing) and then palleti6ing is done for storing it in the warehouse/ PR,PARA( -* -. +BRUP (reated water L +ugar M .la0our

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PRODUCT MANUFACTURED
(he product manufactured by !<umbini Be0erages P0t/ <td/ are 0ery limited ranges as it is not independent to di0ersity its products/ t is a unit of Pepsi food P0t/ <td/ which supplies concentrates for drin$s/ (hey are:H Pro/ucts Pepsi )irinda )irinda )irinda = Up )ountain 2ew +lice <ehar soda Pet Pet &an Aquafina 9)ineral @ater) 0uantit* 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml 5EE ml 1/4 lt/ 3 lt/ 55E ml 1 lt/ Co"our Brunt sugar +unHset (etra6ine (etra6ine &olorless &olorless +unset (etra6ine Brunt sugar Brunt sugar Brunt sugar &olorless &"avour &ola -range <ime )ango <emon <emon )ango <emon &ola &ola &ola @hite

CONSU+ERS
(he main consumers of these products naturally are youth/ Besides the direct consumer it is also used for the some purpose of pro0iding it to the mass by hoteliers% restaurant owners and 0arious other soft drin$ peddlers/ (hese products are the choice of the new generation/ (hus it can be said that it is a product of mass consumption/

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CHAPTER 1.

OR2ANI3ATIONA4 STRUCTURE
2istor9 an" Organi:ational Structure of Lumbini

Beverages vt! Lt"! &a"hura<a"a

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HISTORY AND ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD. HAJIPUR

2istor9 of Lumbini Beverages vt! Lt"! +teel &ity be0erages P0t/ <td/ is situated at Adityapur Candra Road in Gamshedpur/ !Rushabh )ar$eting P0t/ <td/" is the mar$eting di0ision of +teel &ity be0erages/ +teel &ity be0erages P0t/ <td/ is a mother unit and its whole mar$eting acti0ities are done through Rushabh )ar$eting P0t/ <td/ +teel &ity be0erages is one of the Pepsi foods Bottling plants in the country and one of the three in ,astern ndia/ (he other two &alcutta and 'uwahati/ But from E1HE7H1??= !Pepsi .oods <td/ ndia" determines to open another bottling plant which is situated at 8ajipur namely !<umbini Be0erages P0t/ <td/" t is only for *orth Bihar/ +teel &ity be0erages P0t/ <td/ was established by <ate )r/ 2haram &hand Camani in the month of Gune 1?;=/ (he machineries of its main plant were imported in 1?;> and production started in )arch 1?;?/ Before the establishment of +teel &ity be0erages P0t/ <td/ &oca &ola was not much popular among people of Bihar state as pure soft drin$/ Because at that time the bottles of &oca &ola was supplied by the outsiders who were unable to ma$e &oca &ola popular in Bihar/ +o after considering the needs and desires of people )r/ 2harma &hand Camani brought in Bihar/ @ith this effort &oca &ola become popular among the people of Bihar/ But in 1?== due to the sudden change the policies of the 'o0ernment the import license for the concentrate of &oca &ola was stopped/ +o +teel &ity be0erages P0t/ <td/ had to wal$ o0er to ndian &oncentrate &ompanies/ (hey were modem food industries supplied concentrate of double se0en and non ice cream soda/ n 1?>5 the company introduced a cola drin$ !(8R <<" of )cH2owell D &o/ <td/ in the place of 2ouble se0en and triangular and in the 0ery ne:t year two soft drin$ !RU+8" an orange fla0oured and !+PR *(" as lemon fla0oured of )cH2owell D &o/ <td were introduced/

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Before some months !Ananda )ar$eting P0t/ <td/ was the mar$eting di0ision of <umbini Be0erages P0t/ <td/ But at this time% <umbini Be0erages P0t/ <td/ is doing mar$eting with its own name/ (hus it can be seen that <umbini Be0erages P0t/ <td/ has made tremendous mo0e towards the introduction and de0elopment of soft drin$s industries on the whole% and *orth Bihar in particular/ t has made production of perfect hygiene and standard +oft 2rin$ as main objecti0e/

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ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD.

An ideal organi6ational structure facilities management and the operation of the enterprise and it help the organi6ation in achie0ing its goal/ n a simple term in 0arious parts or component are interrelated or interconnected and this way it is the established pattern or relationship among 0arious function of the organi6ation in the established manner/ (he managing director holds the top position/ At present% the managing director of <umbini Be0erages P0t/ <td/ is )r/ &haran Chilani/ But the o0erall policies regarding management decisions and all e:ecuti0es function or performance loo$ after by the day to day decision and general administration as well as management/ (he )2 has gi0en the power of attorney and authority to director )r/ Ra0i Chilani/ )r/ Ra0i Chilani who is well ad0ised by the )2/ (he director )r/ Ra0i Chilani loo$s after all functional departments that sales production% account% personnel and purchase/ (hough the manager all the functional departments has specially designated as head of personnel department/ ,0ery department has to report directly to the managing director and is responsible to his only for wor$ing in spite of this all departments is under the control of the director )r/ Ra0i Chilani/ Because he is the &hief ,:ecuti0e of the company cited earlier/ (he o0erall organi6ational structure can be shown as:

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OVERALL ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD., HAJIPUR BOA(D O) D*('CTO( &ANA0*N0 D*('CTO( C'O

)*NANC' &ANA0'( ABC ASS*STANT ABC CL'(1 ASS*STANT

LANT &ANA0'( S2*)T 'N0*N''( WO(1'( B O '(ATO(

!A!&! S2* *N0 COO(D*NATO(

2!(! &ANA0'( 2!(! 'C'CUT*$' 2!(! CL'(1 ASS*S!

2OS

T!D!&! !

&!'!&!

&!D!&!

?!C!

A!D!C! C!'!

S'N*O( T'C2N*C*AN T'C2N*C*AN

53

&!D!C!'C'CUT*$' &!'/

Academy of Management Studies, Gitam

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Academy of Management Studies, Gitam

(he mar$eting manager is in charge of all mar$eting acti0ities i/e/ sales promotion% publicity and ad0ertisement% mar$eting study and shipping/ But the main function of the mar$eting is to e:ercise the control o0er the channel of distribution/ (he mar$eting manager is assisted by sales e:ecuti0es% city sales e:ecuti0es and rural sales e:ecuti0es and sales e:ecuti0e of shipping department as follows:H

2 R,&(-R

)A*A' *' 2 R,&(-R

8,A2 -. +A<,+

+(A( +( & A*

& (B +A<,+ ,N,&U( #,+

+A<,+ ,N,&U( #,+

+A<,+ +UP,R# +-R

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CHAPTER 5.

A THEORETICA4 &RA+E (OR' O& CHANNE4 O& DISTRI-UTION

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A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION

!)ar$eting channels are sets of interdependent organi6ation in0ol0ed in the process of ma$ing a product or ser0ice a0ailable for use or consumption/" (he main objecti0e of the mar$eting process is to distribute the products to the actual users/ (his function in0ol0es a number of subHfunctions to be performed by a producer or manufacturer/ (hese two functions are most important first% the creation of demand is made through the process of ad0ertising and sales promotion acti0ities/ -n the other hand the distribution through the channels of distribution/ (he decision relating to the channel of distribution is a 0ery important decision from the firm point of 0iew because the selected channels affect considerable other mar$eting decision/ +uch decisions are of long term nature and e:ercise their impact on the cost structure of the firm also/ By channel distribution mean the intermediaries or the process through which the goods products are transferred from the producer to the ultimate users/ *ow a day any of the producers possibly do not sell their goods directly to the final users/ (here are a lot of intermediaries between producers and consumer% bearing a 0ariety of name performing 0arious $inds of function/ +ome intermediaries li$e wholesalers and retailers buy and resale ta$ing the bill/ (hey are $nown as merchant middle men and other are bro$ers% representati0e sales agent who see$s or search for customers and negotiate on the behalf of the producer but do not ta$e of goods/ (hese are called as middlemen/ (he manufacturer and its distributi0e outlets share common objecti0e to sell the manufactured products at a profit/ *o doubt its objecti0e differs with the mar$eting circumstance/ ,0en though many 0ariation of specific objecti0e fits into some categories/ (hese are as follows:H (o built distribution networ$ loyalty (o stimulate distribution (o de0elop managerial efficiency in distribution organi6ation 5;
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 (o identify the source of supply for the product line at the final buyers le0el (he channel of distribution is a structure which organi6ed and presents a choice among alternati0e channels of distribution of the different mar$eting situations faced by retailers% whole sellers and producers with in the structure/ t may be considered as a series of function which must be performed in order to ma$e producers efficiency/ (o bearing ma:imum profits of all institutions concerned a channel of distribution should be treated as a unit of total system of action/ (he acti0ities of the manufacturer need to be coordinated with these middlemen used in the distribution of gi0en product/ (he important of middlemen in channel of distributional can be o0er emphasi6ed/ t is that whoH 1/ &ollects concentrates the output of 0arious producers% 3/ +ubdi0ides these into lot desired by the customers gathers 0arious items together in the assortment wanted and 5/ 2isperses the assortment to consumer industrial buyers/ (he role of middlemen that of specialist in concentration equali6ation and dispersion besides he side in the creation of the time from and procession utilities/

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DECISION MAKING FOR CHANNEL OF DISTRIBUTION

(he mar$eting e:ecuti0e must underta$e to following steps in order to establish the channel of distribution for a company/ 1/ 8e1+he must understand the retail and wholesales mar$et and type of middlemen a0ailable in both/ 3/ 8e1+he must understand the 0arious conflicts which continually e:ist between and within the channel/ 5/ 8e1+he must select the general channel to be used $eeping in mind the goals of the company mar$eting programme and the job to be done by distribution system/ 7/ 8e1+he must ta$e decision regarding be intensity of the distribution 9i/e/ the number of middlemen) to be used each le0el and each mar$et/ 4/ 8e1+he must select the specific firms which will handle his product and then manage the day to day wor$ing relationship with them/ ;/ 8e1+he must determine the methods and the procedure in firms 9i/e/ use of the transportation and warehouse facilities and ser0ices in firms ma$ing programme) in the physical distribution of the product/ (ypes of )ar$eting &hannels 1/ 2irect mar$eting channel : A mar$eting channel that has no intermediaries le0el 3/ ndirect mar$eting channel : &hannels containing one or more intermediaries

Custo er +ar,etin# Channe"s

Channel ,! Channel -! Channel /! Channel 5! &anufacturerDDDDDDDDDDDDDDDDDD!!DConsumer &anufacturerDDDDD(etailerDDDDDDDDDDDConsumer &anufacturerDD!!!WholesalerDDDD!(etailerDDDDConsumer &anufactureDD!WholesalerDD8obberDD(etailerDD!Consumer 5>
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CHANNEL DYNAMICS
2istribution channel do not stand still/ *ew wholesaling and retailing institution emerge and new channel system e0ol0es/ (here are four types of mar$eting channels/ ,! Conventional Distribution Channel A &hannel consist one or more independent wholesaler and retailers/ ,ach is a separate business see$ing to ma:imi6e its own profits e0en if this goal reduces profit for the system as a whole/ *o/ of channel members has complete or substantial control o0er the other members/ -! $ertical &ar%eting Channel (his is most recent mar$eting channel/ A distribution channel system as producers% wholesaler and retailers act as unified systems/ -ne channel member% the channel captain owns the others or franchises them or has so much power that they all coHoperate/ (he channel captain can be the producer% the wholesaler or the retailer/ /! 2ori:ontal &ar%eting Channel A distribution channel system in which two or more unrelated companies put together resources or programmes to e:ploit an emerging mar$eting opportunity/ 5! &ulti Channel &ar%eting n the past% many companies sold to single mar$et through a single channel/ )ulti channel mar$eting occurs when a single firm uses two or more mar$eting channels to reach one or more customer segments/

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('TA*L*N0
ncludes all the acti0ities in0ol0ed in selling goods or ser0ices directly to final consumers for personal nonHbusiness use/ A retailer or retail store is any business enterprise whose sales 0olume comes primarily from retailing/ Retailers are the last but not the least in the mar$eting channel through whom the e0entual transfer of ownership of goods ta$e place/ (he use of retailer boils down to their superior efficiency in ma$ing goods widely a0ailable and accessible to target mar$ets/ n most of the cases the retailers performs the important functions mentioned as under/ 1/ nformation 3/ Promotion 5/ *egotiation 7/ -rdering 4/ .inancing ;/ Ris$ (a$ing =/ Physical Possession >/ Payment ?/ (itle (he major types of retailer are as following:H 1/ Specialt9 StoreA 4 (hey sell narrow product line with deep assortment/ 3/ Departmental storesA 4 (hey sell se0eral product line with each line operated as separate department managed by specialist buyers or merchandisers/ 5/ Super mar%etA 4 (hey are relati0ely large% low cost% low margin% high 0olume self ser0ice operation designed to ser0e total needs for food% laundry and household maintenance product/ 7/ Convenience StoreA 4 (hese are relati0ely small store located near residential areas% open long hours% se0en days a wee$ and carrying an united lines of high turn o0er con0enience products at slightly higher prices/ 7E
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4/ Discount StoreA 4 (hese sell standard merchandise at lower prices with lower margins and higher 0olumes/ ;/ Off price (etailersA 4 (hese sell the merchandise which are bought at less than regular wholesale prices and sold as less than retail/ (hese may be of three types mentioned as under: a6 )actor9 or"ers b6 *n"epen"ent off price retailers c6 Warehouse clubs + Wholesale clubs 6

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Cha!ter 6.
CHANNE4 O& DISTRI-UTION O& 4U+-INI -E7ERA2ES P7T. 4TD.

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Channe !" D#$%&#'(%#!n !" L()'#n# Be*e&a+e$ P*%. L%,. Ma,h(&a-a,a, #n *#.a+
(o ma$e its products a0ailable at the right places at the right time in the mar$et% the sales department of the company pays major attention on controlling the channels of distribution/ +ingle type of mar$ets channel is maintained by the company right from its pioneering stage/ (he nature of the channel is as follows:H &ompany 2istributors 2ealers 2ifferent -utlet -wners &onsumers At first the soft drin$s supplied to the distributors directly/ Retailers or owners of any outlet can not ta$e the deli0ery from company/ (hey ha0e to ta$e the products from their respecti0e or nearest distributor/ (here are about 4E distributors and innumerable number of retail outlets operating with the company in its entire mar$et areas which contains total Bihar/ n all the important places of entire territory this company has its distributors/ (hese distributors selected on the basis of assurance gi0en by them regarding the minimum sales which they ha0e to maintain annually/ (he selection is also done on the basis of the financial position and reputation of distributor in the mar$et/ As for e:ample in appointing a distributor first engaged in soft drin$ business second priority is gi0en to those people who are in cigarette selling business/ 2epending upon the mar$et% each distributor in the initial stage has to deposit some security money/ 75
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(he retailers are selected by the distributor fi:ed criteria for the selection or appointment or retailers from the side of the distributor/ Any one li$e Panwala% &igarettewala or any other shop$eeper can ha0e the stall for the sale of soft drin$s and they are called retailers or outlet owners/ (hey ha0e to gi0e assurance to the concerning distributor for better sale and at the time of ta$ing deli0ery they ha0e to deposit the security i/e/ the charges if the empty bottles with specified retailers purchasing price/ (he charges if the empty bottles with specified retailers purchasing price/ (he distributor at first has to see$ the permission of sales department for the number of cases of soft drin$s required by them/ After getting the proper authority from sales department paying the requisite amount either cash or demand draft/

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(AREHOUSIN2
,0ery company has to store its finished goods until they sold/ A strong facility is necessary because production and consumption cycles rarely match/ @arehousing is not a simply storing acti0ity but a pac$age of ser0ices that enables the smooth running of the industry/ (he stores must be in constant touch with the use department in order to pro0ide uninterrupted ser0ices to the manufacture and its decision since wor$ing capital is loc$ed up in the warehousing stores in equal to money/ (he stores functions can be organi6ed in the following manner:H a) (o recei0e raw material components equipments etc/ b) (o meet the demand of use department by issuing the order c) Accounting the transaction properly/ d) )inimi6ing obsolescence surplus and scrap by right identification and using correct preser0ation method/ (he company supply finished products frequently to different distributors as per the demand/ ,0ery distributor $eeps a minimum stoc$ of different products of the product line so that the uninterrupted supply could not affect/ n the industrial sector ser0ice of optimi6ation where boils down to any e:ercise of optimi6ation where limited a0ailable resources are to be distributed equitably/ (he problem arises from the material that are in stoc$ the form of capital cost% storage loss% pilferage obsolescence% insurance% handling% documentation etc/ +er0ices le0el that can be maintained and hence the concept stores in money should be understood by e0ery body in the organi6ation/

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*N$'NTO(Y D'C*S*ON
+,6 Bran"ing an" ac%aging
-ut of the total mar$et acti0ities some are directly performed and controlled by !<umbini Be0erages P0t/ <td/" itself some are followed according to the standing instruction of !Pepsi .oods P0t/ <td/ +o far as the process of branding and pac$aging is concerned the !<umbini Be0erages P0t/ <td/" Along with the authori6ed bottle in ndia adopt the same pattern/

+-6

Wholesaling
@holesaling includes all the acti0ities in0ol0ed in selling goods or ser0ices to those who buy for resale or business use/ )anufactures use wholesalers because wholesalers can perform function better and more cost effecti0ely than the manufacture can/ (hese functions are not limited to selling and promoting% buying and assortment building bul$ bar$ing% warehousing% transporting financial ris$ bearing dissemination of mar$eting information and pro0ision of management ser0ices and consulting/ <i$e retailers wholesaler must decide on target mar$et% product assortment and ser0ices promotion and place/ (he most successful wholesalers are those who adopt their ser0ices to meet and target customerAs needs% recogni6ing that e:isting to add 0alue to the channel/

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+/6 (etailing
Retailing includes all the acti0ities in0ol0ed in selling goods or ser0ices directly to find consumer for their personal nonHbusiness use/ A retailer or retail store is any enterprise which sales 0olume comes primarily form retailing/ All mar$eter retailers must prepare mar$eting plans that include decision on target mar$et/ +o the mar$eting channels can be 0iewed as a set of interdependent organi6ation with high potential for conflict/ (hen why would any business chosen to become part of channel system/

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T(ANS O(TAT*ON
(ransportation is life blood of business management and commerce/ (he purchase officeAs job in incomplete until and unless he ensures that the material is shipped from the 0endorAs premises located in different areas to his organi6ation/ Purchasing the transportation is a $ey element in his job particularly in the conte:t of the transportation cost/ n deciding to transporting models shippers can choose from pri0ate contract and common carriers/ (ransport decisions must consider the comple: trade off between 0arious transportation mode and their implications for other distribution elements such as warehousing and in0entory/

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DISTRIBUTION OF PEPSI

8ere there are four systems of distribution channels/ &hannel 1/ &hannel 3/ &hannel 5/ &hannel 7/ )anufacturerOOOOOOOOOOOOOOOOOOO&onsumer )anufacturerOOOOORetailerOOOOOOOOOO//&onsumer )anufacturerOOO@holesalerOOOO/RetailerOOOO&onsumer )anufactureOO/@holesalerOOGobberOORetailerOO//&onsumer

Channel of "istribution of Lumbini Beverages vt! Lt"! B9 Lorr9 or Truc% Distributor Dealers of customer

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PERFORMANCE OF Vizag
Patna has a significant role for Pepsi% in products are supplied by !<umbini Be0erages P0t/ <td/% )adhura0ada/A (here are more than eight hundred including e:clusi0e and none:clusi0e outlets of Pepsi in proper 0i6ag/ (he highest sale of this year PPPPPPPPPP cases was in the month of )ay and total sale of this year wasOOOOO//cases so far/ 8ierarchy is also necessary to understand the capacity of Patna town/ 2*'(A(C2Y O) $i:ag Distributor Consumer 'Eecutive Sales &an Accountant $ehicle Loa"er an" Unloa"er

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STUDY ON PRODUCTS
Product line is a group of product% that are closely related because they satisfy a class of needs or used together or sole to the same customer groups or mar$eted through the same types of outlets or fall within gi0en price range/ <umbini Be0erages P0t/ <td/% has the following product line:

Name Pepsi )irinda )irinda +lice =AUp 2ew <ehar +oda

Colour Brunti +unset (etra6ine +unset &olourless &olourless (etra6ine

)lavour &ola -range <emon )ango <ime <ime <emon

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PRICE SHEET -U(<,( RA(,

.<A#-UR P,P+ &-<A P,P+ &-<A P,P+ &-<A P,P+ &-<A ) R *2A -RA*', ) R *2A -RA*', ) R *2A -RA*', ) R *2A -RA*', ) R *2A <,)-* ) R *2A <,)-* =UP =UP =UP =UP )-U*(A * 2,@ )-U*(A * 2,@ )-U*(A * 2,@ +< &, +< &, +< &, )B &A* P,P+ 2 A( +< &, (,(RAPA&C <,8,R +-2A <,8,R +-2A PA&C + Q, 3EE )< 5EE )< ;EE )< 3EEE )< 3EE )< 5EE )< ;EE )< 3EEE )< 3EE )< ;EE )< 3EE )< 5EE )< ;EE )< 3EEE )< 3EE )< ;EE )< 3EEE )< 34E )< 4EE )< 13EE )< 34E )< 55E )< 3EE )< 5EE )< ;EE )< P&+ RA(, 37 37 37 ? 37 37 37 ? 37 37 37 37 37 ? 37 37 ? 37 37 13 37 37 5E 37 37 1;> 317 747 74? 1;> 317 747 74? 1;> 317 1;> 317 747 74? 1;> 747 74? 317 7?> 453 55E 4;7 3>4 317 747
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&/RA(,
RA(, 1?3 37E 7>E 7?4 1?3 37E 7>E 7?4 1?3 37E 1?3 37E 7>E 7?4 1?3 7>E 7?4 37E 443 4=; 5;E ;EE 5;E 37E 7>E P,R P&+ RA(, > 1E 3E 44 > 1E 3E 44 > 1E > 1E 3E 44 > 3E 44 1E 35 7> 14 34 13 1E 3E

P,R P&+ RA(, = ? 1? 41 = ? 1? 41 = ? = ? 1? 41 = 1? 41 ? 31 77 17 35/4 1E ? 1?

STUDY ON RETAILERS
(etail Shop t9pe / )onopoly Retail +hop / )i: +hop : : (he shop selling only one companyAs Products (he shop selling many companyAs Products

(he retailers can build a great deal of goodwill for the firm/ (he mar$eting strength depends on the strengths of retail dealers/ Research has conduct sur0ey on different types of outlet li$e ba$eries% cold drin$ parlor% Booth and general stores etc/ According to his sur0ey% the major reasons for selling Pepsi products are: 91) 93) 95) 97) 94) 9;) 9=) Brand mage &ustomer 2emand Profit )argin Ad0ertisement 'ood Ruality +ales Promotion for Retailers +ales Promotion for &onsumers 1>K 3EK E4K 5EK 1EK E=K 1EK

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BRAND PREFRENCE
Pepsi products are most popular brand but &o$e products are 0ery dear brand of consumers due to ad0ertisement/ After the collection of different 0iews from consumer which includes% ser0icemen% students% and businessman and obser0ing the sale of Pepsi products/ (he research has calculated the preference consumption of different Pepsi products by the people of #isa$hapatnam

Bran" reference of Consumers 56 )lavour &ola -range <emon <ime )ango F Consumption 7?K 1;K 13K E=K 1=K

15% 17% Cola Orange Lem on Lim e Mango 7% 12% 7 Up 16%

49%

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5) According to my sur0ey the distribution channel people using 1=? pan shops and 13 sweet and ba$ery shops and ? general stores/

4) n my sur0ey people ga0e ran$s li$e this way%for this pepsi 11E people ga0e more importance and for that co$e they responded 4> people and finally 53 people prefer other outlets

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Academy of Management Studies, Gitam

STUDYING THE MARKET POTENTIAL

(he mar$et potential is an estimate of the ma:imum possible sales opportunities present in a particular mar$et segment and open to all sellers of a good and ser0ice or during a stated future period/ A mar$et potential indicates how much of a particular product can be sold to a particular mar$et segment/ )ar$et potential can be determined by measuring the sales in different areas/ 1) (he data has collected from 1EE outlets% which are situated in different areas of #i6ag/ According to that% the per day sale of Pepsi Products is 147 carats and the per day sale of sale of &o$e Products is 17> crates/ er Da9 Sales in Crate of ro"ucts

Coca Cola 48% Pepsi 52%

Pepsi Coca Cola

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Academy of Management Studies, Gitam

Chapter >!

Conclusion an" Suggestions

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Academy of Management Studies, Gitam

Conclu ion an! Sugg" #ion

n the earlier chapters of this report on 0arious aspects of soft drin$s industry with particular reference to establishment of JA<umbini Be0erages P0t/ <td/AA ts organi6ational structure and channel of 2istribution <umbini Be0erage P0t/ <td/ etc ha0e been studied Present chapter is an attempt to summaries the whole report and present a 0iew suggestion/ .rom the data analysis and sur0ey conducted by me% arri0ed at the following conclusions:H 91) Pepsi has the entire fla0or i/e/ &ola% <eman% -range% )ango in the mar$et and its mar$et share is comparati0ely more than &o$e/ 93) (he majority of the retailers deal in all brands of Pepsi and &ocaH&ola/ 95) -ne of the major drawbac$s of Pepsi products is that all the fla0ors do not reach at each and e0ery retail outlets but competitors products do reach that is why competitor enters in to Pepsi e:clusi0e outlets / 97) (he major problem faced by the distributor is the shortage of supply particularly pets/ 94) 2istributor functions just as order ta$esI they should contribute me and communicate to the retailers/ 9;) t should be chec$ed that whether our products is reaching to the outlets timely and regularly or not/ 9=) Although the #isiHcooler% +ign board12isplay rac$ and 'lass strength pro0ided by Pepsi are more than &o$e but still there are number of retailers% who are either not ha0ing these or others ha0e pro0ided them / 9>) (here is irregular in the supply of #isiHcooler% some retailers% which sell more are not pro0ided #isiHcooler which some retailers% which sell less% are pro0ided 0isiHcooler/ 9?) +ome of the #isiHcooler pro0ided by Pepsi is not functioning properly% complaints regularly% are entertained after a long time/ 91E) )ost of the retailers are in need of board but not pro0ided by the Pepsi &ompany/ 911) )ost of the retailerAs especially small retailers ha0e complained that the sales man does not inform about any sales promotional scheme/ 913) (he big retailers of Pepsi do not maintain the purity in the #isiHcooler and dictate their own terms and conditions/ /

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Academy of Management Studies, Gitam

Sugg" #ion
<umbini Be0erages P0t/ <td/ should introduce some change in its mar$eting function and ad0ertising to mar$et more rational/ (he following factors to be worthy of consideration:H 1/ A complain Register should be pro0ided by the company to e0ery distributor in e0ery route so that% retailers1customers can write their problems/ (he complain register should be chec$ed by consumer e:ecuti0e and depot in charge at time to time/ 3/ A clear notification should be gi0en to teach distributor and each route agent to gi0e cash memo 9with printed number) and maintain route card for e0ery transaction/ 5/ Proper care should be gi0en the companyAs employees at the time of scheme close/ +ignature of scheme recei0ing on the cash memo should be ta$en and it should be also maintained in route card/ &laim of scheme should be passed after the deeply stud y of abo0e three points i/e/ difference between opening stoc$ and closing% signature of scheme recei0ing on the cash memo and sells maintained in the route card/ 7/ +ome retailers $eep other companies products in the PepsiAs fridge% while is pro0ided by the company/ (o chec$ additional scheme be gi0en in e0ery month% in the pea$ seasons After the chec$ing of PepsiAs .ridge 95or 7 times in e0ery month ) if t is found that retailer does not $eep other companies products in the PepsiAs Pepsi fridge the claim of scheme should be passed / (hus we can impro0e1increase its sell and employeeAs acti0ities/ 4/ (here is no electricity problem in the whole area of Patna/ .or chilled soft drin$% ice bo: which is compulsory and dredge both should be pro0ided by the company/ ;/ (he numbers of outlets are too much/ +o it is required to short the route and e:tra 0ehicles1tricycles pro0ide in this route/ =/ .acilities pro0ided by the company should be increased/ .acilities requirements should be fulfilled in all the rural and urban area properly after deeply study for 0arious aspects or retailers by the help of company employee and depot incharge/ >/ *umber of tricycle can be installed at 0arious place li$e public during the peal hours i/e/ e0ening and busy roads and chow$s near the townSs commercial 4?
Academy of Management Studies, Gitam

centers/ &are should be ta$en to install these tricycles under a shady tree where pro0iding relief from h eat to the prospecti0e customers as well as the 0endor/ ?/ All these tricycles targeted the tired and thirsty consumer or the road and other place% care should be ta$en that soft drin$s in the ice bo: are always chilled and ice readily a0ailable/ 1E/ (he 0endors must be taught to be polite to the consumers/ 11/ (he 0endors can also be pro0ided with uniform by the company in order to gi0e them 0isibility/ 13/ An appropriate name should be gi0en to these tricycles and properly ad0ertisement thus gi0ing them some sort of identity/ 15/ n winters% as the sales from these tricycles may be 0ery low because of seasonal factors Be0erages P0t/ <td/ should thin$ of introducing such pac$s Bea0er its 0arious brands of be0erages / t is 0ital ta$e for !<umbini Be0erages P0t/ <td/ that maintain the performance of Pepsi in future therefore performance of soft drin$ was 0ery good in this year in comparison of co$e/

17/

14/ *ow a day with the introduction of tetra pac$s such as fruity% (ree (op etc/ +o <umbini Be0erages P0t/ <td/ should thin$ of introducing such pac$s of its 0arious brands of be0erages/ 1;/ <umbini be0erages P0t/ <td/ should be pro0ided itAs the rural area also/ At last only this can be said that these suggestions are mot totally but e0en partially can be used by the <umbini Be0erages P0t/ <td/ it would be pleasure for me and is certain that if these are carried out by management % it will helpful in establishing the <umbini Be0erages P0t/ <td/ on a more stronger footing/

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Academy of Management Studies, Gitam

0UESTIONNAIRE
NameA 4 DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!! A""ressA 4 DDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!! DDDDDDDDDDDDDDDDDDDDDDDDD!!!!!!!!!!!!!!!!!!!!!!! Contact NoA 4 DDDDDDDDDDDDDDDDDDDDDDDDDDDDD 91) )onthly sales 9in Rs/) 9a) <ess than 4EEE 9c) 1E%EEE to 14%EEE 93) 9a) E H 4E carets 9c) 1EE to 14E carets 95) @hich type of outletT 9a) 'eneral +tore 9c) Betel +hop 97) 9a) Pepsi &ola 9c) )irinda 9<) 9e) +lice 94) demandsT 9Ran$ them) 9a) Pepsi 9c) -thers 9;) 2o you $now about all fla0ours pac$ 9si6e) and respecti0e wholesale price Pepsi soft drin$s/ 9a) Bes 9=) 9a) E H 4E carets 9c) 1EE to 14E carets 9>) Pepsi :9a) #ery 'ood 9b) 'ood 9b) *o 9b) 4E to 1EE carets 9d) 14E to 3EE carets 9c) Bad ;1
Academy of Management Studies, Gitam

9b) Between 4EEE to 1E%EEE 9d) Abo0e 14%EEE 9b) 4E to 1EE carets 9d) 14E to 3EE carets 9b) 'rocery 9d) +weet +hop 9b) )irinda 9-) 9d) =AUp 9f) )ountain 2ew

*umber of carets sold per month of soft drin$s/

@hich brands of soft drin$s are a0ailable in the outletT

@hen a customer comes to your shop which brand of soft drin$s does he1she 9b) &oca &ola

@hich companyAs soft drin$ is demanded mostT

@hat is the position deli0ery of Pepsi 1 &o$e productsT 9d) @orse

&o$e :9a) #ery 'ood 9b) 'ood 9?)

9c) Bad

9d) @orse

@hat is the frequency of the 0isit of Pepsi 1 &o$e e:ecuti0eT Pepsi I9a) 2aily 9b) Alternate 2ay 9c) @ee$ly 9d) .ortnightly &o$e I9a) 2aily 9b) Alternate 2ay 9c) @ee$ly 9d) .ortnightly

91E)

@hich factors affect the sale mostT 9a) Ad0ertisement 9c) Presence 9e) Price 9b) +cheme 9d) (aste 9f) -thers 9b) &oca &ola 9d) -wn

911)

@hich company #isiH&ooler do you ha0eT 9a) Pepsi 9c) Both

913)

@hat is the position of maintenance wor$ of refrigerator done by Pepsi 1&o$e &ompanyT Pepsi: 9a) 8ighly satisfactory 9b) satisfactory9c)*ot satisfactory &o$e: 9a) 8ighly satisfactory 9b) satisfactory9c)*ot satisfactory

915) 917) 914)

8a0e you been pro0ided with sign board1display rac$ by Pepsi 1&o$e &ompanyT Pepsi: 9a) Bes 9b) *o &o$e : 9a) Bes 9b) *o 8a0e you any type of dissatisfaction regarding the product/ t yes then whyT OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Please gi0e any suggestion for impro0ement regarding distribution% brand%

bottling etc/ OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO///OOOOO 91;) @hat is your opinion about Pepsi productsT OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Than% You Place:HOOOOOOOO 2ate:H OOOOOOOO +ur0eyed by

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Academy of Management Studies, Gitam

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Academy of Management Studies, Gitam