HOUSEHOLD DISTRIBUTION OF PEPSI At PEPSICO INDIA HOLDING PVT.

LTD

A Study Project Submitted to Sinhgad Institute of Business Administration & Computer Application in partial fulfillment of the Award of PGDM COURSE 2009 2010 Submitted by Raju Kumar sagar Project Guide Prof. Vaibhav Kale

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND COMPUTER APPLICATION, LONAVALA

DECLARATION
I hereby declare that this project entitled- HOUSEHOLD DISTRIBUTION OF PEPSI submitted in partial fulfillment for the award of the Post Graduate Diploma In Management, is a bonafide record and no part of this project has been submitted by me, for any other degree, diploma or for any other title.

(Raju Kumar Sagar)

PREFACE
Summer Training is an integral part of the PGDM Degree Curriculum and the students of Management have to undergo a training session in a Business Organization for at least 60 days to gain some practical knowledge in their area of specialization as well as some working experience. In globalization process, the rush of multinationals into the Indian market has become a common phenomenon. For the survival in the market, marketing is playing a vital role and even has become a necessity for such business firms. Branding, pricing promotion, quality, distribution, service and customer have become vital components of marketing and most of the business firms are realizing that if they dont have competitive strengths, they can not survive. The undertaken project is one of its kinds and is a smart and bold step taken by PEPSICO INDIA HOLDING PVT. LTD to penetrate into the markets.

ACKNOWLEDGEMENT
I, MR. Raju Kumar Sagar, have great pleasure in presenting my project report on HOUSEHOLD DISTRIBUTION OF PEPSI as partial fulfillment of PGDM COURSE programme under AICTE at Sinhgad Institute of Business Administration and Computer Application (SIBACA), Lonavala. I would like to thank Mr. N.K.PRASAD, the Mgr. of HR Department, for his valuable guidance. Also, I would like to thank the Sr.Customer Executive, Mr. Samarandra Kumar Singh, who guided me at every step during the course of the project and gave their valuable suggestion which led to the successful completion of the project. I am extremely grateful to the all executive employees and head of department, because without whose support and co-operation, the project would have been simply impossible. I am thankful to Lumbini Beverages Pvt. Ltd for placing me as a trainee and giving me an opportunity to be of some use to the organization. Last but not the least, I am thankful to our Director, Mr. Prag Kalker and Placement Cell to gave me this opportunity for completed my project in Pepsi (Lumbini Beverage Pvt. Ltd) due to which, I applied my theoretical knowledge in practically as well as learns the various things which would be of use in the near future.

(RAJU KUMAR SAGAR)

INDEX

S.No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Objectives

Topic
Executive Summary Introduction Company Profile Research Methodology Data Analysis and Interpretation Observation and Findings Recommendations & Suggestions Conclusion Annexure Bibliography

Page
6 7-8 9-12 13-37 38-44 45-56 57-58 59-61 62-63 64-66 67-68

EXECUTIVE SUMMARY

In this summer training project report, I would like to brief on various portion of the report .this report is on the topic Household Distribution of Pepsi covered some of the following important subtopics. The first subtopic is the brief study of History, Types of Soft drink and Different types of soft drinks in India. Second subtopic is Company Profile i.e. Company Profile - In this section there is a detail about Product, Price, and Marketing Strategy etc. Third section contain detailed study of existing Household Distribution of Pepsi i.e. in this section all about Survey which done. Though Observation and findings on the basis of the questionnaires which is filled by Retailers. Through discussion and personal interview. Last but not the least, in this section Suggestion taken by Retailers, My Point of view and Bibliography is given.

CHAPTER # 1 OBJECTIVE

OBJECTIVE OF THE PROJECT

1. 2.

To have an overall view of the Household Distribution of Pepsi. To get a first hand knowledge as regards to the proper implementation of the

Household Distribution in Hajipur and its preparedness to meet the new challenges in the area of Household. 3. 4. 5. Pepsi. To examine the implementation of Household Distribution in Retail Shops. To recognize the Strengths and weaknesses of Household Distribution of Pepsi. To Know the Retailer Comments or Suggestion on Household Distribution of

CHAPTER # 1 INTRODUTION

DIFFERENT TYPES OF SOFTDRINK IN INDIA

PEPSI 9

 COCA COLA CAMPA COLA FROOTI

PEPSI
Type Manufacturer Country of Origin Introduced Related products Cola PepsiCo, Inc. United States 1903 Coca-Cola

RC Cola Pepsi-Cola, commonly called Pepsi, is a cola soft drink produced and manufactured by PepsiCo. It is sold worldwide in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years, including Diet Pepsi, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Jazz, Pepsi Next (available in Japan and South Korea), and Pepsi Easter Hop.

COCA COLA
Type Manufacturer Country of Origin Introduced Related products Cola The Coca-Cola Company United States 1886 Pepsi RC Cola

Coca-Cola is a cola (a type of carbonated soft drink) sold in stores, restaurants and vending machines in more than 200 countries. It is produced by The Coca-Cola Company (NYSE: KO[1]), which is often referred to as simply Coca-Cola or Coke. Coke is one of the worlds most recognizable and widely sold commercial brands.

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CAMPA COLA
Type Manufacturer Country Cola Pure Drinks & Campa Beverages

India of Origin Introduced 1977 Related products Coca-Cola, Schweppes Cola, Pepsi Cola

Campa Cola was a soft

drink brand in India until 2000. It was a market leader in some regions for a period spanning several years until the advent of the foreign players Pepsi and Coca-Cola after the liberalisation policy of P. V. Narasimha Rao Government in 1991. Campa Cola was a drink created by the Pure Drinks Group Pvt. Ltd. in the 1970s. The Pure Drinks Group pioneereed the India soft drink industry when it introduced Coca-Cola into India in 1949, and were the sole manufacturers and distributors of Coca-Cola till the 1970's when Coke was asked to leave. The Pure Drinks Group and Campa Beverages Pvt. Ltd. virtually monopolized the entire Indian soft drink industry for about 20 years, and then started Campa Cola during the absence of foreign competition.

FROOTI
Frooti is a drink available in and exported from India. It is available in both Tetra Pak packages and PET bottles, and is offered in 3 different flavours: mango, 'Chatpatta Mango' and guava.

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Parle Agro Pvt Ltd produces Indias leading mango beverage brand, Frooti. It has used Tetra Pak packages and filling machines since 1985. Frooti is made with water, mango pulp, sugar, citric acid, ascorbic acid and approved colouring and flavouring. It is marketed as the leading on the go drink in India

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CHAPTER # 2

COMPANY PROFILE

INTRODUCTION OF PEPSI
Type Founded Headquarters Key people Public (NYSE: PEP) 1965 Purchase, New York, USA Indra Nooyi, Chairwoman, President & CEO

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Industry Products

Food and beverage Pepsi Tropicana Products Gatorade Lay's Doritos Frappuccino (for Starbucks) Mountain Dew

Revenue Operating income Net income

$35.137 billion USD (2006) $6.44 billion USD (2006) $5.64 billion USD (2006) 16.06% profit margin

Employees

153,000(2005)

PepsiCo, Inc. is currently one of the most successful consumer products company in the world with annual revenues exceeding $30 billion and has more than 480,000 employees. PepsiCo, Inc. began as a successor to a company incorporated in 1931, known as Loft Inc. Once known as Pepsi-Cola, the company expanded its business and adopted its current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger dramatically increased PepsiCo's market potential and set the foundation for the company's tremendous growth.

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PepsiCo's products are recognized and are most respected all around the globe. Currently, PepsiCo divisions operates in three major US and international businesses: beverages, snack foods, and restaurants. In each of these businesses, PepsiCo has attained a leadership position as being the world leader in soft drink bottling g, the world largest snack chip producer, and the world largest franchised and company operated restaurant system. The corporations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices PepsiCo's overall mission is to increase the value of our shareholders' investments through sales growth, investments and financial activities. PepsiCo believes their success depends upon the quality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity.

HISTORY OF PEPSI

PepsiCo's beverage business was founded in 1898 by a pharmacist named Caleb Bradham who created a special beverage, a soft drink, in the back room of his drug store in New Bern, North Carolina. This new soft drink called "Brad's Drink" had a unique mixture of kola nut extract, vanilla and rare oils.

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Caleb began to advertise his new creation with the theme "Exhilarating, Invigorating, Aids Digestion" and renamed it as "Pepsi-Cola." Caleb Bradham began his cola operation in 1902. The Pepsi Cola Company was headquartered in the back room of his drug store where he packaged the syrup for sale to other soda fountains. The business increased, and on June 16, 1903, "Pepsi-Cola" was officially registered with the US Patent Office. And as a result, Caleb Bradham began to franchise Pepsi-Cola to many independent investors. By the end of 1910, Pepsi-Cola was franchised in 24 states. Until World War I, Pepsi-Cola Company achieved 17 years of success and a new theme was introduced, "Drink Pepsi-Cola. It will satisfy you." However, after the war years, Caleb Bradham suffered bankruptcy. As a result, Pepsi-Cola became a subsidiary to Loft Incorporated, a large chain of candy stores and soda fountains. Today, Pepsi-Cola Company is a major division of PepsiCo's corporate structure. Pepsi-Cola Company now produces and markets a wide range of beverages to retail, restaurants and food services in more than 191 countries and territories around the world and brings in an annual revenue of $10 billion. There are 200 plants in the US and Canada, as well as, 530 plants throughout the rest of the world, that produces Pepsi-Cola's beverages.

Since the creation of Pepsi-Cola in 1898, Pepsi-Cola Company has introduced 13 beverages that wear the Pepsi-Cola trademark. Five of Pepsi-Cola's brand names: Pepsi, Diet Pepsi, Mountain Dew, 7 UP, and Mirinda, each brings in annual revenue in consumer sales of $1 billion. In 1992, a partnership between Thomas J. Lipton and Pepsi was formed. This partnership produces, markets, and distributes Lipton Brew, Lipton Brisk and Lipton Fountain Ice-Tea. And in 1993, Pepsi Max a low calorie cola was created and introduced only for the international markets. Pepsi Max is now produced in over 40 countries and is the third largest-selling cola brand outside the US. 16

PepsiCo is continuing to expand and introduce new alternative beverages in the market. There are four alternative beverages that are currently being tested in our market today. Mazagran, a cold sparkling coffee based beverage, Aquafina, bottled water, and a low fat milk shake called Smooth Moos. The latest beverage was launched on May 22, 1996 in Philadelphia. Pepsi-Kona, a new cola is a combination of the Pepsi-Cola flavor and the Kona blend of coffee.

PEPSICO IN INDIA
PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $35 billion and more than 168,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories. PepsiCo entered India in 1989 and in the span of a little more than a decade, has grown to become the countrys largest selling food and beverage companies. One of the largest

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multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. The group has built an expansive beverage, snack food and exports business and to support the operations are the groups 37 bottling plants in India, of which 16 are company owned and 21 are franchisee owned. In addition to this, PepsiCos Frito Lay snack division has 3 state of the art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. Our commitment to living by this vision every day is visible in our contribution to our country, consumers, farmers and our people. Providing consumers with balance and choice PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up Light, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks Gatorade, and 100% natural fruit juices and juice based drinks Tropicana and Slice. Our local brands Lehar Everest Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brands. PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market and was amongst the first companies to eliminate the use of trans fats and msg in its products. It manufactures .Lays Potato Chips; Cheetos extruded snacks, Uncle Chips and traditional namkeen snacks under the Kurkure and Lehar brands. Quaker Oats, Lehar Lites, low fat and roasted snack options enhance the choices available to the growing health and wellness needs of our consumers.

PepsiCo India has 40 bottling plants in India. PepsiCo generates direct employment for more than 4000 people in

India and indirect employment for 60,000 people. India. 18 Sells more than 200 million crates annually PepsiCo generates estimated annual retail sales of U.S$700 million in

PepsiCo's annual exports from India are worth over U.S$60 million. PepsiCo has invested U.S$1.5 million investment to cooperatively

develop a comprehensive agro technology program in partnership with the Punjab government to help farmers improve the quality and yield of their crops. PepsiCo supports sea weed cultivation projects in Tamil Nadu which

provide members of women's self help groups with sustainable livelihoods. PepsiCo has established zero waste centers and PET recycling

supply chains.

BOARD OF DIRECTORS

19

Dina Dublon

Victor J. Dzau

Ray L. Hunt

Alberto Ibargen

Arthur C. Martinez

Indra K. Nooyi

Sharon Percy Rockefeller

James J. Schiro D. White

Daniel Vasella

Michael

COMMITTES

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Nominating and Corporate Governance Committee Members Ray L. Hunt, Chairman Victor J. Dzau, MD Arthur C. Martinez Sharon Percy Rockefeller Daniel Vasella Audit Committee James J. Schiro, Chairman Dina Dublon Alberto Ibargen

Compensation Committee Arthur C. Martinez, Chairman Victor J. Dzau, MD Ray L. Hunt Sharon Percy Rockefeller Daniel Vasella

At present Mr. Rajeev Bakshi is the Chairman of PepsiCo

India Holdings Pvt.

Ltd. in India in which position he has responsibility for the company's business in India, Nepal, Bhutan, Bangladesh and Sri Lanka.

PRODUCT OF PEPSI
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PEPSI
Crystal Pepsi Pepsi Blue Pepsi Gold Pepsi Twist Pepsi ONE Pepsi Max Pepsi Diet Pepsi Lime Wild Cherry Pepsi

MIRINDA
Mirinda Sorbet Mirinda Orange

MOUNTAIN DEW

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 7 UP SLICE TROPICANA AQUAFINA LEHAR SODA

7 UP

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Type Manufacturer Country of Origin Introduced Variants Related products

Lemon-lime soda Cadburys (U.S.), PepsiCo (elsewhere) United States 1929 dnL, 7 Up Plus Dr Pepper, Sprite

7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the brand are held by Cadbury Schweppes Americas Beverages in the United States, and by PepsiCo in the rest of the world (sublicensed to Britvic in the United Kingdom and C&C in Ireland).

Mirinda
Mirinda is a brand of soft drink available in fruit varieties including orange, grapefruit, apple, strawberry, pineapple, banana, and grape flavors. It is part of a beverage area often referred to as the flavor segment, comprising carbonated and non-carbonated fruit-flavored beverages. The orange flavor of Mirinda represents the majority of Mirinda sales worldwide.

Mirinda is owned by PepsiCo and is primarily commercialized outside of North America. It competes with Coca-Cola's Fanta brand and with flavor brands local to individual countries.

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As with most soft drinks, Mirinda is available in multiple formulations depending on the taste of individual markets.

Mountain Dew
Type Manufacturer Country of origin Introduced Citrus soft drink PepsiCo, Inc. United States 1964 (nation-wide) Diet Mountain Dew Caffeine Free Diet Mountain Dew Caffeine Free Mountain Dew Mountain Dew Code Red Diet Mountain Dew Code Red Variants Mountain Dew LiveWire Mountain Dew Pitch Black Mountain Dew Pitch Black II Mountain Dew Baja Blast Mountain Dew MDX Mountain Dew AMP

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Mountain Dew is a caffeinated, sweet, citrus-flavored soft drink produced by PepsiCo, Inc. It was invented in Marion, Virginia and first marketed in Knoxville, Tennessee in 1948, then by the Minges family in Fayetteville, North Carolina and across the United States in 1964. [1] When removed from its characteristic green bottle, Mountain Dew is bright yellow-green and semi-opaque.

Slice
Type Manufacturer Country of origin Introduced Related products Flavored soft drink PepsiCo, Inc. USA 1984 Sierra Mist, Sprite, Fanta, Teem

Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in 1984, with the Lemon-Lime and Mandarin Orange flavors

Aquafina
Type Manufacturer Country of origin Introduced Water Beverage PepsiCo, Inc. United States 1994

Aquafina is a popular brand of bottled water. It was first distributed in Wichita, Kansas in 1994, and was distributed across the United States , Canada , Turkey and Vietnam by 1997. As of 2003, it had become the United States' top-selling bottled water brand in measured retail channels.

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The water is standard tap water but goes through an extensive purification process that includes charcoal filtration, reverse osmosis and ozonation. Aquafina is sold in 12-ounce, 500-mL (16.9-ounce), 20-ounce, 24-ounce, 1-liter, and 1.5-liter bottles.

PRICE

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SKU 200 ml 300 ml 600 ml 2 Ltr. PEPSI BIB MIRANDA BIB 7UP,DEW BIB Can-330 ml Can Diet 330 ml Can Diet 330 ml 5+1 M/DEW CAN 330 ml 5+1 Slice 200 ml Slice 250 ml Slice Pet 500 ml Slice Pet 1000 ml Soda 300 ml Soda 600 ml Aquafina 750 ml Aquafina 1 Ltr.12 Aquafina 500 ml

New MRP 7 10 20 48

20 25 10 10 22 45 6 12 20 13 8

Distributor Rate 141.00 206.00 436.00 391.00 2440.00 1220.00 610.00 441.00 545.00 448.00 361.00 208.00 206.00 488.00 495.00 118.00 258.00 260.00 215.00 160.00

Trade Price 150.00 216.00 450.00 405.00

450.00 560.00 460.00 370.00 220.00 216.00 498.00 505.00 128.00 268.00 270.00 224.00 172.00

ABOUT PRICE
Providing quality products at the lowest possible price has always been one of the main concerns of Pepsi. For example, in some parts of the country a two-liter bottle of Pepsi cost 99 cents a decade ago and still does today. One of the ways we've been able to assist this effort is by expanding our use of inexpensive and recyclable plastic bottles. The soft drink industry today is confronted with a bewildering array of price increases. Our expenditures for labor, ingredients, transportation and more all continue to rise. The cost of

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aluminum alone has increased dramatically since last year. Across our entire system however, we have been cutting overhead and re-engineering our manufacturing process in order to keep our prices competitive. It is our policy to limit any price increases to the retail trade to the lowest possible extent.

MISSION

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PEPSICO MISSION

Pepsi Is One Of The Safest Beverages You Can Drink Today. We follow regulations laid down by the indian Government which are amongst the worlds most stringent. PepsiCo India is in full compliance One Quality Standard For Pepsi Globally. 30

Indian regulations are amongst the world's best. Over the past few years the soft drink industry has worked with the Government of India, the scientific community and NGOs to establish stringent science-based regulations. The new regulations for carbonated soft drinks notified by the Health Ministry on July 15, 2004 are comparable to the most stringent international regulations, including that of the European Union. All PepsiCo products in India meet these regulations. Our beverages are safe Our products comply with the Prevention of Food Adulteration Act (PFA) directive on the use of water in the preparation of soft drinks. We also comply with the Bureau of Indian Standards (BIS) for packaged drinking water. We use a six-stage water purification process to deliver this standard consistently.

The pesticide question? Manufacturer of food products adds pesticides to their products.

Do we live in a pesticide free world? Pesticides are used to protect agricultural crops from insects and pests. Minute quantities of these pesticides enter the ground water and remain in the agricultural crops which ultimately find their way into our food. Do pesticide residues compromise safety of food products?

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Recognizing that pesticide residues are present in the food chain, international agencies like WHO and national authorities establish strict norms based on their experience and scientific research. Is the safety of soft drinks compromised by pesticide residues? Independent government data has shown that pesticide residues present in soft drinks are at safe levels.

ENVIRONMENTAL COMMITMENT
PepsiCo has a corporation-wide commitment to the environment. PepsiCo is committed to providing a safe and healthy environment for their employees as well as for the community. PepsiCo is dedicated to designing, constructing, maintaining, and operating facilities that protects their people and their physical resources.

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PepsiCo commitment to reducing the impact of their businesses on the environment through conservation, recycling, and energy use programs that promote clean air and water and reduce landfill waste. PepsiCo's dedication and commitment to the environment is stated in their "Worldwide Code of Conduct". The "Worldwide Code of Conduct" defines PepsiCo's commitment based on the following environmental principles: 1. Business is conducted by complying with all applicable laws and regulations and provide a safe and healthy environment. 2. Minimizing the impact of our businesses on the environment through methods that are socially responsible, scientifically based and economically sound, such as recycling and conservation. 3. Developing programs that promote clean air and water, energy conservation, and reduce land fill waste. 4. By supporting programs that educate, train and motivate employees to help the environment. 6. By cooperating with different organizations and governments to find solutions that reduce pollution and by supporting environmental policies.

MARKETING STRATEGY
Pepsi is known in the marketing world as a convenience product, one that is purchased without much consideration. So how is it decided which brand of soft-drink to buy? Annually, softdrinks are a $5 billion business, that is why the techniques for market ing and ensuring Pepsi's purchase are so important.

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In response to last year's success of the Pepsi Stuff Campaign, on May 13, 1997 they unveiled "Pepsi Stuff '97." This is a promotion in which you buy Pepsi products, receive points on the boxes and cans, and then redeem them for items in their catalogue. Pepsi was very successful last year with this campaign, attracting over 30 million participants. One major problem though was 21 year old John Leonard taking serious a television commercial that jokingly offered a military j et as a prize for 1 billion Pepsi points. Pepsi points were also purchasable, so Leonard rounded up five investors to purchase enough points to acquire the jet. Pepsi is now involve in a legal battle over this matter, even though the Pentagon has stated i t is not possible to buy one of the jets. Taking into account the controversy of the jet, Pepsi has taken consideration to offer prizes in "Pepsi Stuff '97" that are legally attainable. They include "Fantasy Stuff" prizes, such as throwing out the first pitch at a World Series game or feeding the ball to Shaquille O'neal for a $25,000 slam-dunk. Success in the soft-drink market also involves forming strategic alliances with companies to capture market share. Pepsi has secured two major deals this year, one with Warner Brother's International Theaters, and the other with Major League Baseball. The Warner Brother's alliance gives Pepsi exclusive pouring rights at all existing and projected Warner Brother's International Theaters. This includes 358 movie screens at 43 theaters in 6 countries, including: Great Britain, Spain, Germany, Portugal, Italy , and Japan. The significance of this deal according to Vince Gennaro, President of the Fountain Beverage Division at Pepsi, "Nearly half on the world's movie fans are between the ages of 15 and 24. Together with Warner Brother's, we intent to inject a wh ole new dimension of excitement into their regular trip to the multiplex." Pepsi's five year deal with Major League Baseball gives them exclusive rights to use baseball's trademarks and team logos in al advertising, packaging, merchandising, and promotions. Pepsi has forged a reputation as appealing to the teenage audience, which is why Major League Baseball believes its deal with Pepsi will attrac t a younger audience, which was partially lost

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due to aggressive marketing campaigns by pro football and basketball, as well as the 1994 strike. "Project Blue" is an international venture the Pepsi hopes will transform its international marketplace presence. It represents a $500 million investment, including the system-wide conversion of bottles and cans, coolers and vending machines, as well as trucks and other transports. The new design features a striking blue "grid" background; bold vertical typography; and a three dimensional globe that evokes the company's "ball" icon. Currently Coca-Cola is associated with red, which is why Pepsi is attempting to create brand association and awaren ess with the color blue. According to John Swanhaus, Pepsi-Cola Company's Senior Vice President of International Sales and Marketing, "Blue is modern and cool, exciting and dynamic, and most importantly it's a color that powerfully communicates refreshment. Ultimately, we believe that owning blue will give us a significant competitive advantage in the marketplace. Pepsi, with their aggressive marketing, also engage in creative ventures. Three such case include an innovative web site, the world's first commercial in space, and buying screensaver ad space in schools. The web site, called Pepsi World, combines breakthrough technology with powerful content. If features movie previews, origin al interactive games, first-run articles, new music, digital art, national Net-Promotions and more. This site allows Pepsi to aggressively market their brand name in a revolutionary way. The site is constantly being re-inven ted to remain at the forefront of the Cyberculture. Pepsi is also breaking ground by filming the world's first commercial in space. It is part of Pepsi's partnership with the Russian Mir Space Station. For the ad, two cosmonauts film the deployment of a large-scale replica of Pepsi's new blue can, which w as described in the "Project Blue" section. The can itself is actually a fully orbital spacecraft built by International Space Enterprises. It was built to withstand temperature swings of -100 F to + 200 F. A Canadian school board, faced with the problem of large-scale funding cutbacks ,have sold to Pepsi, McDonald's, and Trident advertising rights to a screensaver program that mixes educational messages, motivational words, and corporate advertising. This subject is controversial, but all advertisements must agree to include an educationally motivating

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message. The Pepsi ad will have a slogan that encourages children to "develop a thirst for knowledge."

COMPETITOR
Coca-Cola controlled the Indian market until 1977, when the Janata Party beat the Congress Party of then Prime Minister Indira Gandhi. To punish Coca-Cola's principal bottler, a Congress Party stalwart and longtime Gandhi supporter, the Janata government demanded that Coca-Cola transfer its syrup formula to an Indian subsidiary.

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Coca-Cola balked and withdrew from the country. India, now left without both Coca-Cola and Pepsi, became a protected market. In the meantime, India's two largest soft-drink producers have gotten rich and lazy while controlling 80% of the Indian market. These domestic producers have little incentive to expand their plants or develop the country's potentially enormous market. Some analysts reason that the Indian market may be more lucrative than the Chinese market. India has 850 million potential customers, 150 million of whom comprise the middle class, with disposable income to spend on cars, VCRs, and computers. The Indian middle class is growing at 10% per year. To obtain the license for India, Pepsi had to export $5 of locally made products for every $1 of materials it imported, and it had to agree to help the Indian government to initiate a second agricultural revolution. Pepsi has also had to take on Indian partners. In the end, all parties involved seem to come out ahead: Pepsi gains access to a potentially enormous market; Indian bottlers will get to serve a market that is expanding rapidly because of competition; and the Indian consumer benefits from the competition from abroad and will pay lower prices. Even before the first bottle of Pepsi hit the shelves, local soft drink manufacturers increased the size of their bottles by 25% without raising costs.

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CHAPTER # 3 RESEARCH METHODOLOGY

RESEARCH METHEDOLOGY

38

Research is a planned and systematic investigation and analysis of factual data to check, verify or disapprove guesses, clues, assumption. It supplements the existing body of knowledge and widens the frontiers of understanding. Edwin.b.flippo defines research as systematic and purposive investigation of facts with the object of determining cause and effect relationships among such facts. Method is the scientific way of doing things to achieve the desired result. In this particular study, the researcher has followed the scientific steps as enumerated below:

SELECTION OF THE TOPIC

Research on Household Distribution of Pepsi is a tool utilized to identify how the consumer buy and in what situation they buy and ratio of the people who buy These activities should be provided to the employees to improve their Retailer. In order to get a constructive outcome, the focus should be placed on needs as opposed to desires of the consumer.

SCOPE OF STUDY:
As the researcher was placed in PEPSICO INDIA HOLDING PVT.LTD, HAJIPUR for undertaking research as a requirement of the partial fulfillment for the award of the Post Graduate Diploma In Management, the universe of the study is limited to PEPSICO INDIA HOLDING PVT.LTD, HAJIPUR.

OBJECTIVE OF STUDY:
The main objective/aim of the study is to assess the how to increase the sell of PEPSI. 39

METHOD OF STUDY:
The entire survey was planned with a view to collect data and provides feedback to PEPSICO INDIA HOLDING PVT. LTD., HAJIPUR about its household distribution of pepsi. For that purpose, household distribution of pepsi questionnaire which is developed by me with the help of my internal guide and my training officer of PEPSICO. About 12 questionnaires were administered to the Retailer by the researcher. Any confusion regarding the questionnaire was promptly attended to by the researcher. 09 questionnaires were returned to the researcher. The collection of data took a little over one week.

SAMPLING:
The universe was PEPSICO INDIA HOLDING PVT LTD., HAJIPUR. All retailers were the respondents in the present study. The questionnaires were administered none randomly to the various Retailer.

TOOLS OF STUDY
The study based on information given by Retailers. This is done with the interviewing different personnels discussion getting information from the document and files .The primary preparation is from the different books.

SOURCES OF INFORMATION
In order to get a proper flow of informational list has drawn as to from where to get sufficient and authentic information on the subject. For the present study, following are the sources for the study.

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 PRIMARY SOURCES Personal interview Observation Personal discussion and interaction SECONDARY SOURCES Annual report Files/ document Manual of the organization Books & Project reports On the basis of this, a training programme was designed in order to train the front line executives and Managerial staff in order to improve their competencies and thereby improve production.

DEFINATION
Research is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is done with the help of study, observation, comparison and experiment. It is a scientific and systematic search for pertinent information on a specific topic.

There is a topic, Household Distribution of Pepsi which is our summer project topic in Pepsico India holding Pvt. Ltd., Hajipur (Bihar). Through investigation we are trying to find new facts and ideas training needs.

RESEARCH TYPE
The type of Research which is used in the Household Distribution of Pepsi is purely a Descriptive Research. This kind of Research includes surveys and fact finding enquiries of different kinds.

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RESEARCH DESIGN
The survey was conducted for the Pepsico India Holding Pvt.,

Hajipur (Bihar).

RESEACH PROCEDURE
1. First of all, a list of competencies, for the Retailer as well as the Consumers was prepared, which would be grounds for assessing them. 2. 3. 4. Then, questionnaires were prepared, one for Retailer as well as the Consumers At Lucknow various Shop are there Grocery shop, Retail Outlet, Shopping mall etc. Here the Retailer and the Consumers were interviewed and then the questionnaires were filled by them. 5. After filled the questionnaires by the all Retailer, we collected the questionnaires paper by self. 6. 7. 360 techniques were used for assessing the all Retailer and the Consumers The collected data was analyzed and concluded were drawn accordingly. This was all done in excel sheets and word pad wherein the conclusions have been supplemented with pictorial representations.

SAMPLE DESIGN
This survey was conducted at Pepsico India Holding Pvt. Ltd., Hajipur which are a part of Pepsico India Holding Pvt. Ltd., India.

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Universe: -

Hajipur (Bihar).
Sampling Unit: Retailer, Shopping Mall, Grocery Shops at Hajipur , Bihar

Sampling Size: Retailer: - 20

Primary Data: Primary Data which gave the researcher a base for framing the Questionnaires, which then highlighted all the important aspects for consideration. Primary data was collected in form of questionnaires with interview.

Questionnaires: Questionnaires were the main instrument regarding primary data collection. A copy of questionnaires has been enclosed in the Annexure. In additional to the questionnaires method, data was also collected by interviewing the respondents face-to-face. This ensured that the data collected through questionnaires was accurate. In the process of conducting interviews, observation the respondents body language, facial expression. This was true in case of Pepsico India Holding Pvt. Ltd., Hajipur, Bihar Thus in this way data collection was done.

43

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CHAPTER # 4 DATA ANALYSIS AND INTERPRETATION

ANALYSIS OF QUESTIONAIRE

1. What type of consumer mostly comes to your Shop? a. Permanent 45

b.Temporary

Alternative Permanent Temporary

Number of customer 14 6

Number of customer

14 12 10 8 6 4 2 0 Permanent Temporary Number of customer

2. What class of Consumer mostly comes? a. Service Class b. Business Class c. Others

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Alternative Service Class Business Class Other

Number of customer 11 7 2

Number of customer

Service Class Business Class Other

3. What type of soft drink you sale, Pepsi or Coca cola? a. Pepsi b. Coca Cola

47

c. Both

Alternative Pepsi Coca cola Both

Number of customer 6 4 10

Number of customer

10 9 8 7 6 5 4 3 2 1 0

Number of customer

Pepsi

Coca cola

Both

4. What is the mode of business transaction you are following in your store? a. Cash b. Credit c. Both

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Alternatives Cash Credit Both

Response of Retailer 7 6 9

%age 35% 30% 45%

Response of Retailer

41%

32%

Cash Credit Both

27%

5. At which time consumers purchase more? a. Season b. Offers c. Regularly Alternatives Season Response of Retailer 11 49 %age 55%

Offers Regularly

6 3

30% 15%

R e s p o n s e o f R e t a ile r

R e s p o n s e o f R e t a ile r 12 10 8 6 4 2 0 S eas onal O ffe rs R e g u la r

6. Does consumer buy any cold drink along with monthly house hold item? a. yes b. no

Alternative Yes

Number of customer 16

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No

16 14 12 10 8 6 4 2 0 Y es No Num ber of c us tom er

7. What type of cold drink does a consumer prefer the most? a. Coca cola product b. Pepsi product c. Both

Alternative Coca cola product

Number of customer 9 51

Pepsi product Both

7 4

Num ber of c us tom er

9 8 7 6 5 4 3 2 1 0

Num ber of c us tom er

Coc a c ola produc t

P eps i produc t

B oth

8. Whom do you prefer to deliver Pepsi at home? a. Regular Consumers b. Volume Based Consumers

Alternatives

Response of Retailer

%age

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Regular Consumers Volume Based Consumers

8 12

40% 60%

R e s p o n s e o f R e ta ile r

12 10 8 6 4 2 0 R e g u la r C o n s u m e r s V o lu m e B a s e d C o n su m e rs R e g u la r C o n su m e rs, 8 V o lu m e B a s e d C o n su m e rs, 1 2 R e s p o n s e o f R e t a ile r

9. Are all flavor of Pepsi available during summers? a. Yes b. No Alternatives Yes No Response of Retailer 14 06 %age 70% 30%

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R e s p o n s e o f R e t a ile r

14 12 10 8 6 4 2 0

Y es , 14

No, 6

R e s p o n s e o f R e t a ile r

Y es

No

10. How much you are satisfied with the PEPSI product? a. Fully satisfied b. Partially satisfied c. Not at all satisfied

Alternative Fully satisfied Partially satisfied Not at all satisfied

Number of customer 3 6 11 54

Number of customer 12 10 8 6 4 2 0 Fully satisfied Partially satisfied Not at all satisfied Number of customer

11. Would you like to deal with the company in future? a. Yes b. No

Alternative Yes No

Number of customer 14 6

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Number of customer

14 12 10 8 6 4 2 0 Yes No Number of customer

CHAPTER # 5
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OBSERVATION AND FINDINGS

OBSERVATION AND FINDINGS

Today, the aim of any business is to earn profit & making good relation with the consumer, Retailer wants to sell the product thats gives him good Profit with holding the consumer. According to the survey there are some the fact comes forward

1.
2.

Most of the Retailer sells both Pepsi as well as coca-cola but there are some of the shop There are most of consumer who came in shop are regular they permanent as well as

which are completely Pepsi or Coca-cola they dont sell other than that. temporary too.

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3.

In a retailer or grocery shop both the consumers comes service class as well as business The ratio of the consumer who buy on cash is higher than credit but not higher than credit Most of the consumer buys in season, after they think on offer and there are some of the The numbers of consumer who are purchasing pepsi are volume based consumer rather When a consumer comes in grocery shop they sometimes buy Pepsi. Most of the consumer gets delivery of its product on time. Pepsi is having 80% satisfied consumers which good for its growth. Most of the Retailer want to deal with Pepsi in future also.

class but ratio of business class is higher than service class.

4. 5. 6. 7. 8.
9.

and cash. consumer who buys on regular basis. than regular consumer.

10.

CHAPTER # 7
58

RECOMMENDATIONS AND SUGGESTIONS

SUGGESTIONS BY RETAILER

All flavors should be available in the peak season when it is demanded. More Offers should be given on big pack (1.5L, 2 L). Competitive Prices should be there. The customer should be provided with the fridge for cooling purpose of cold drinks. The customer should be provided hooding and glow sign board as a display to tell the consumer about the cold drink product that are sold their. 59

 Delicacy Problem should be removed. Its is suggested by the most of retailers the small pack of Pepsi should be available (150 ml/Rs 5). It is easy to sell in the colonies. Launch more product and Product Line

MY POINT OF VIEW
To increase household distribution company should offer discount on family pack. Pepsi should do collaborative marketing with some companies which are playing

major role in house hold distribution. Pepsi should hire housewives to advertise cold drink.

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Pepsi should Introduce tetra packs (150 ml/Rs 5). Pepsi should introduce some more Flavours of its Product. Pepsi should give some tattoos to attract children (age group 5 to 13). Pepsi should introduce PEPSI CLUB for Women for social gathering.

CHAPTER # 8

61

CONCLUSION

CONCLUSION

PepsiCo India Holding India Pvt. Ltd. is one of the reputed companies amongst various cold drink Industry. PepsiCo is having different product with its product line. Pepsi has acquired a big share of market in India and in other countries because of its competitive pricing, distribution system and through good customer relation. Like in other industry Pepsi is also having different competitors. In India Pepsi is having only one competitor that is coca-cola. As we know in summer season demand of cold drink raised but in some cases it is unable to provide all flavors to its retailers. The quality of product is different in different countries. 62

Pepsi doesnt facilitate credit facility to its customer whereas customers have to provide credit facilities to its consumer so as to increase his selling and to maintain relation. Now, the President and CEO of Pepsi Indira Nooyi has announced that there will be one quality for Pepsi all over and there will a symbol on all product of the Pepsi. This will help in increase the sale of Pepsi Product. Despite of all the strength and weakness it is also having some threats it is also having Opportunity still to grow more and competitor with its competitor. Over all the company is a very good company and one of the leading and growing company in India.

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CHAPTER # 9 ANNEXURE

QUESTIONNAIRE
1. Name of outlet?

2. What type of consumer mostly comes to your Shop? a. Permanent b.Temporary

3. What class of Consumer mostly comes? a. Service Class b. Business Class 64

c. Others

4. What type of soft drink you sale, Pepsi or Coca cola? a. Pepsi b. Coca Cola c. Both

5. What is the mode of business transaction you are following in your store? a. Cash b. Credit c. Both

6. Does consumer buy any cold drink along with monthly house hold item? a. yes b. no 7. What type of cold drink does a consumer prefer the most? a. Coca cola product b. Pepsi product c. Both

8. At which time consumers purchase more? a. Season b. Offers c. Regularly

9. Whom do you prefer to deliver Pepsi at home?

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a. Regular Consumers b. Volume Based Consumers

10. Are all flavor of Pepsi available during summers? a. Yes b. No

11. How much you are satisfied with the PEPSI product a. Fully satisfied b. Partially satisfied c. Not at all satisfied

12. Would you like to deal with the company in future? a. Yes b. No

CHAPTER # 9
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BIBLIOGRAPHY

BIBLIOGRAPHY

1. www.pepsico.com 2. www.wikipedia.com 3. www.answer.com 4. www.google.com 5. www.pepsiindia.com

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