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Research Reporton
SALES & PROMOTION of
Master of Business Administration
By
Km. Richa
Roll. 132220007
Under the guidance of
Prof. Himani Goswami
M.B.A Deptt.
ITS Engg College of Management, Greater Noida.
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Sales and Promotion of Pepsi
Research Report Submittedin
Partial Fulfillment of Requirment for the Award ofMaster of Business Administration
(Affiliated to UPTU, Lucknow)
By, Submitted toKm. Richa Prof. Himani GoswamiRoll No. 132220007 Deptt. of M.B.A
ITS Engg College of Management, Greater Noida.
( Batch 2013-15 )
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Certificate
This is to certify that Ms. Richa ( Roll No. 132220007 ), a
student of the Masters of Business Administration, has
successfully completed her Dissertation Report titled “ Sales
and Promotion of Pepsi “ during her 4th semester and has
submitted this report in partial fulfillment of the requirement
for the award of Degree in Masters in Business Administration.
Sign._________Prof. Himani Goswami
Dated: 20th April 2015
Sign. __________Prof. Ankur Srivastava( H.O.D M.B.A )
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Student Undertaking
I Km. Richa have completed the project titled “ Sales and
Promotion of Pepsi “ under the guidance of Ms. Himani
Goswami in the partial fulfillment of the requirement for the
award of the degree in Master of Business Administration from
UPTU. This is an original piece and I have neither copied and
nor submitted it earlier elsewhere.
Sign __________
Km. Richa132220007
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ACKNOWLEDEMENT
A task undertaken without offering prayers to almighty and talking blessings
from the elders is not a good beginning. Likewise the work completed
without acknowledging the assistance to those who were always by my sides
to make my efforts fruitful in the task left incomplete.
In the beginning, I would like to express my sincere thanks to my Institute
teachers for giving me an opportunity to take the practical experience of
working life.
I convey my sincere thanks to Mr. Himani Goswami, Faculty Guide, MBA,
and Mr. Rajeev Srivastava, Sr. Sales Manager, Varun Beverages, for
providing me the proper guidance, support and current information by which
this summer training project has been successfully completed effectively and
efficiently.
I would also like to pay thanks to all my classmates and friends and my
family members for co-operating with me and helping me to complete the
project.
RICHAMBA IV SEM
ROLL NO. 132220007
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PREFACE
Research project is necessary part for fulfillment of MBA course. The
emphasis in the project is providing the study and an insight into Indian
FMCG Business Scenario.
The research project is designed to provide participation of MBA
program as on the job experience. This has given a chance to try and apply
the academic knowledge and gain insight into corporate culture. This helps
in developing decision making abilities and emphasizes on active
participation by the student.
I undertook my Project in Varun Beverages, a leading Bottler and
Marketing partner of the Pepsi Foods. During the training, I had worked on
the project “ Sales & Promotion of PEPSI ”
I gained valuable experience & knowledge during the survey. The
Project consists of my findings after tabulation of collected data, then
analyzed conclusions were drawn and finally suggestions were put forward.
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CONTENTS Page No.
ACKNOWLEDGE
PREFACE
EXECUTIVE SUMMARY 08
COMPANY PROFILE 11
PRODUCTS PROFILE 16
CREDENTIALS 37
OBJECTIVES 40
RESEARCH METHODOLOGY 44
FINDINGS & OBSERVATIONS 69
ANALYSIS 74
KEY FINDINGS 81
RECOMMANDATIONS 84
LIMITATIONS
90
CONCLUSIONS 92
ANNEXURE 95
BIBLIOGRAPHY 99
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Executive Summary
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EXECUTIVE SUMMARY
The distribution network of PEPSI is well known for its efficiency but
company constantly strives for the betterment of their distribution network
system. Emphasis of our study was to focus on the customer of company i.e.,
the retailers.
The Retail Mapping of NOIDA & NCR is an integral step for the
assessment, development and betterment of this system. The distribution
system not only comprises the movement of the products but also
incorporates the merchandising of the product, which is very broad in its
purview.
The project incorporates the analysis of the performance of PEPSI and
probing into opportunities of increasing the market share in NOIDA & NCR.
The entire process had to be in an organized manner in order to deliver
meaningful results for the purpose of decision-making. The project was that
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of market research with surveys and observations as its major phases with
the objective of gathering of all important information material for
strengthening the position of PEPSI in NOIDA & NCR.
PEPSI boasts of having the maximum market share in the beverage
segment in NOIDA & NCR and is in constant process for the betterment of
its product performance and customer as well retailer’s satisfaction.
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Company Profile
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THE COMPANY PROFILE: PEPSI CO.
Caleb Bradham a New Bern N.C druggist who formulated Pepsi
Cola founded Pepsi Cola Beverage business at turn of the century. Pepsi
Cola Company now produces and markets nearly 200 refreshment beverages
to retail, restaurants and food service customers in more then 190 countries
and territories around the world and generates revenue of over 18 billion
dollars PepsiCo World Headquarters is located in Purchase, New York.
Pepsi Co. is the world leader in the food chain business. It consists of
many companies among which the prominent ones are Pepsi Cola, Frito-
lay, Pepsi food international, Pizza-hut, KFC and Taco bell. The group is
presently into three most profitable businesses namely, Beverages Snacks
foods and Restaurants.
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The beverages segment primarily market it Pepsi diet, Pepsi Mountain
Dew and other brands worldwide and 7UP outside the U.S.market. They are
positioned in close competition with Coca Cola inc. of USA.
The Snacks food divisions manufacture and distribute and markets
others snacks worldwide.
The restaurant segment primarily consists of the operations of the
worldwide Pizza-Hut, Taco bell and KFC chains PFS, PepsiCo’s restaurant
distribution operation, supplies to Company owned and Franchise
restaurants in the U.S.
When Coca Cola changed its formula in 1985, Pepsi Stepped up its
competition with its long time archrival claiming victory in the Cola-wars.
Coke and Pepsi expended their rivalry to tea in 1991 when Pepsi formed a
venture with No.1 Lipton in response to Coke’s announced venture with
Nestle (Nestea).
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“Pepsi Co is going blue”. This was the new color adopted by the
company to strengthen its brand globally. Also the company is changed
colors from Generation X to GENERATION NEXT.
Although Pepsi holdings over the years have become diverse in such
fields as the Snacks industry and Restaurants industry, this portfolio will
discuss its core business and its highly successful business of Beverages.
The soft drink industry customer base is probably the widest and deepest
base in a world that is flooded with some many categories. According to
Beverage Digest the customer base for soft drinks is a whopping 95% of
regular users in the United States. This represents a large field of potential
customers for Pepsi Cola.
Pepsi prefers to segment itself as the beverage choice of the “New
Generation”, “Generation Next”, or just as the “Pepsi Generation”.
These terms adopted in Pepsi’s advertising campaigns are referring to the
markets that marketers refer to as Generation X. The Generation X
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consumer is profiled to be between the ages of 18 to 29. They have high
expectations in life and are very mobile and active. They adopt a lifestyle of
living for today and not worrying about long-term goals. Those Pepsi’s main
emphasis on this segment they also have a focus on the 12 to 18 year old
market. Pepsi believes if they can get this market to adopt their product then
they could establish a loyal customer for life.
Pepsi Cola throughout its 100 years of existence has developed much
strength. One of the strengths that has developed Pepsi into such a large
corporation is a strong franchise system. The strong franchise system was
the backbone of success along with a great entrepreneur spirit. Pepsi’s
franchise system and distributors is credited to bring Pepsi from a 7,968
gallons of soda sold in 1903 to nearly 5 billion gallons in the year of 1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a
year. This enormous ad budget allows Pepsi to reinforce their products with
reminder advertising and promotions. This large budget also allows Pepsi to
introduce new products and very quickly make the consumer become aware
of their new products.
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Pepsi also has had the good fortune of making very wise investments.
Some of the best investments have been in their acquiring several large fast
food restaurants. They have also made wise investments in snack food
companies like Frito Lay, which at present time is the largest snack
company in the world. Probably high on the list of strengths is Pepsi’s
beverage line up.
Pepsi has four soft drinks in the top ten beverages in the world.
These brands are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free
Diet Pepsi. Some other strong brands are All Sport, Slice, Tropicana,
Starbucks, Aquafina and a license agreement with Ocean Spray Juices.
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Product Profile
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PRODUCT POSITIONING OF PEPSI CO.
Pepsi prefers to position itself as the beverage choice of the “New
Generation”, “Generation Next”, or just as the “Pepsi Generation”.
These terms adopted in Pepsi’s advertising campaigns are referring to
the markets that marketers refer to as Generation X. The Generation X
consumer is profiled to be between the ages of 18 to 29. They have high
expectations in life and are very mobile and active. They adopt a lifestyle of
living for today and not worrying about long-term goals. Though Pepsi’s
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main emphasis is on this segment but they also have a focus on the 12 to 18
year old market.
The rich deep blue coloring represents eternal youthfulness and openness.
Marketing plans like “Yeh Dil Maange More”, “Got Another Pepsi”, “Ye
Pyass Hai Badi” have made Pepsi one of the coolest brands recognized
among teens in India top five and the only beverage product in this category.
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STRENGTH & WEAKNESSES
OF PEPSI CO.
Pepsi Cola throughout its 100 years of existence has developed much
strength. One of the strengths that have developed Pepsi into such a large
corporation is a strong franchise system. The strong franchise system was
the backbone of success along with a great entrepreneur spirit. Pepsi’s
franchise system and distributors is credited to bring Pepsi from a 7,968
gallons of soda sold in 1903 to nearly 5 billion gallons in the year of 1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a
year. This enormous ad budget allows Pepsi to reinforce their products with
reminder advertising and promotions. This large budget also allows Pepsi to
introduce new products and very quickly make the consumer become aware
of their new products.
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Pepsi-Cola provides advertising, marketing, sales and promotional
support to Pepsi-Cola bottlers and food service customers. This includes
some of the world's best-loved and most recognized advertising. New
advertising and exciting promotions keep Pepsi-Cola brands young. The
company manufactures and sells soft drink concentrate to Pepsi-Cola
bottlers. The company also provides fountain beverage products.
Pepsi also has had the good fortune of making very wise investments.
Some of the best investments have been in their acquiring several large fast
food restaurants. They have also made wise investments in snack food
companies like Frito Lay, which at present time is the largest snacks
company in the world.
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Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has
four soft drinks in the top ten beverages in the world. These brands are
Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi
also has the No.1 tea in the United States, Lipton Tea. Some other strong
brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and a license
agreement with Ocean Spray Juices.
Pepsi Cola like any company has weaknesses. Ironically, the one
strength that has been credited for most of its success in the past has now
become a weakness for Pepsi. This former strength is the franchise system.
The franchise system in Pepsi Corporate view has become a liability. Pepsi
in today’s market must be able to act as one instead of several separate units.
The franchise system has become a hurdle to Pepsi because many of
these franchises have become very strong and will not be dictated by
PepsiCo on how to handle their operations. Some of these franchises are
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unwilling to support certain Pepsi products and at times produce their own
private label products that are in direct competition with Pepsi products.
Secondly the franchisees are not willing to make capital expenditures
to keep up with Coca-Cola who is a firm believer in reinvesting into their
infrastructure (Coca Cola at present time does not operate a franchise
bottling system).
As mentioned earlier Pepsi has tried to elevate this problem by
spinning off their interest in fast food restaurants but at present time are still
guilty by association to many of the large fountain accounts. The franchise
system has also affected fountain sales due to the fact franchisees are not
willing to buy expensive fountain equipment to place in accounts mainly
because the profit margin is so low and could take years to recoup their
investment. Pepsi also has a weakness in the international beverage market.
Unfortunately for Pepsi they were a “Johnny Come Lately” into this
arena. Pepsi has tried to enter this market by trying to do in three years what
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took Coke 50 years to do. This area will take years for Pepsi to mature
simply due to Coke’s dominance in the international market and the strong
ties that Coke has developed with these markets and their governments.
Pepsi customers buy nearly five billion gallons of soft drinks per year.
Pepsi customers buy their products because of taste, price, packaging and
promotional factors and of a wide variety of brands. Pepsi customers also
buy their products due to the high accessibility of Pepsi brands.
Pepsi products are distributed to many outlets. For example,
supermarkets where Pepsi buys large shelf area and display areas so the
customer can find them easier, viz, Convenience stores, Restaurants, Movie
theaters and almost and other conceivable spots.
Pepsi has a competitive advantage over Coke because of the image it
portrays. Pepsi promotes itself as the choice of the “New Generation”.
Pepsi gets this advantage by implementing such large marketing projects
like “Project Globe”. This marketing plan, which Pepsi spent 637 million
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dollars over five years, is to introduce the new rich deep blue coloring of its
packaging. The rich deep blue coloring represents eternal youthfulness and
openness. Marketing plans like this made Pepsi one of the coolest brands
recognized among teens in the top five and the only beverage product in this
category.
Another competitive advantage that Pepsi has is in their product
Mountain Dew. Mountain Dew has grown a staggering 74.1% over the last
five years. Mountain Dew has a 6.3% market share and has recently become
the No.4 soft drink in America. At this current pace Mountain Dew will be
come the first non-cola to reach the 1billion gallon mark in one year.
Pepsi also has an advantage as an innovator in their field. They are
the first soft drink makers to introduce a new one-calorie soda called Pepsi-
One with, just approved by the FDA, Ace-K.
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This new sweetener is slated to be a break through for diet soda in
which it limits the after taste associated with diet soda and brings a more
cola taste to the product. Pepsi has always been a strong No.2 against Coke
and have become one of the world’s largest Companies. As far as market
share is concerned Pepsi stands strong.
PEPSI-THE INDIAN EXPERIENCE
• Pepsi is one of the most well known brands in the world today
available in over 160 countries. The company has an extremely positive
outlook for India. "Outside North America two of our largest and fastest
growing businesses are in India and China, which include more than a
third of the world’s population." (PepsiCo’s annual report, 1999)
• This reflects that India holds a central position in Pepsi’s corporate
strategy. India is a key market for PepsiCo, and at the same time the
company has added value to Indian agriculture and industry. PepsiCo
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entered India in 1989 and is concentrating in three focus areas – Soft drink
concentrate, Snack foods and Vegetable and Food processing.
• Faced with the existing policy framework at the time, the company
entered the Indian market through a joint venture with Voltas and Punjab
Agro Industries. With the introduction of the liberalization policies since
1991, Pepsi took complete control of its operations. The government has
approved more than US$ 400 million worth of investments of which over
US$ 330 million have already flown in.
• One of PepsiCo’s key strategies was to develop a completely local
management team. Pepsi has 19 company owned factories while their Indian
bottling partners own 21.
The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing
official about it’ immediately ring a bell- it’s got to be Pepsi.
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The advertisement tag ‘yehi hai right choice baby’ was the first
‘Hinglish’ slogan ever used in the in the Indian market. This slogan proved
to be the best suited one for Pepsi and it was a mega hit and at that moment
of time.
Pepsi in a short span of its operations in India has found a place in the
hearts and minds of the Indian consumers. The success has primarily been
due to the innovative and passionate Indian team, which has been built over
the years. Pepsi is a trendsetter managed and run by Indians, where
important decisions are taken locally.
Pepsi started its operations in India in 1989 and since then PepsiCo
has set up a fully integrated operation in India viz. Manufacturing, Research
& Development, Marketing, Distribution and Franchising- covering
fruit/vegetable processing, Exports, Snack Foods & Beverages. In the mean
time Pizza Hut and Frito Lay’s are the examples in this regard only.
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Pepsi has 40 bottling plants in India, out of which 16 are company owned
and 24 are owned by Indian franchisees. One of the major player in
franchisee is RKJ Group.
The RKJ group is India's leading supplier of retailer brand Carbonated
and Non-Carbonated soft drinks, with beverage manufacturing facilities in
India and Nepal. Its experience in the beverage industry dates back to the
sixties when it had the first franchise at Agra.
It has the license to supply beverages in the territories of Western
U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of
Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in
total 18 bottling plants in India & Nepal and is responsible for producing and
marketing 44% of Pepsi requirement in India.
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This group has brought name and fame to the Pepsi as in all this
regions Pepsi is at the commanding position and in the mean this group has
diversified itself into ice cream, suiting and shirtings, restaurants, beer plant
in Mauritius & edible oil plant in Sri Lanka.
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PEPSI – BRANDS AND PACK PROFILE
BRAND PACKS:
The products are generally available in three kinds of
packaging:
GLASS BOTTLES
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DISPOSABLE CANS
PET JARS
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FLAVOUR PACKS:
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COLA (Carbonated Soft Drink):
PEPSI
ORANGE:
MIRANDA ORANGE
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MOUNTAIN DEW
7UP
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MANGO:
SLICE MANGO
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MINERAL WATER:
AQUAFINA
Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly
known is one of the largest FMCG market in the whole world with the
total annual sales of around $40 billion.
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THE RKJ GROUP
It can be said with absolute certainty that the RKJ Group has carved
out a special niche for itself. Their services touch different aspects of
commercial and civilian domains like those of Bottling, Food Chain and
Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay
claim to expertise and leadership in the fields of education, food and
beverages.
The business of the company was started in 1991 with a tie-up with
Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in
geographically pre-defined territories in which brand and technical support
was provided by the Principals viz., Pepsi Foods Limited. The manufacturing
facilities were restricted at Agra Plant only.
The group also became the first franchisee for Yum Restaurants International
[formerly PepsiCo Restaurants (India) Private Limited] in India. It has
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exclusive franchise rights for Northern & Eastern India. It has total 27 Pizza
Hut Restaurants under its company.
They have diversified into education by opening their first school in
Gurgaon under the management of Delhi Public School Society.
Companies are medium sized, professionally managed, unlisted and
closely held between Indian Promoters and foreign collaborators.
The group added another feather to its cap when the prestigious PepsiCo
“International Bottler of the Year” award was presented to Mr. R. K.
Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s
centennial year celebrations at Hawaii, USA. The award was presented by
Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr.
George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of
the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of
Pepsi Cola Company.
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Credentials
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MAJOR CREDENTIALS
VARUN BEVERAGES LIMITED RECEIVED “GOLD
STANDARD AWARD” FOR PRODUCTION & QUALITY
CONTROL FOR THE YEAR 1996-1997.
JAIPURIA GROUP WAS ADJUDGED “BEST BOTTLER”
OUT OF MORE THAN 2000 BOTTLERS ALL OVER THE
WORLD FOR THE YEAR 1996-97.
LOCATIONS OF BOTTLING PLANTS OF PEPSI
IN INDIA
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O bjective
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OBJECTIVES OF THE PROJECT
The Project “Sales & Promotion of PEPSI in NOIDA & NCR” was
designed on the lines of basic investment decisions to be taken by the senior
officials of PEPSI for the purpose of amendments in the pre-existing
distribution network in order to review and strengthen the routes. The
findings of the project are very crucial for the increment of the market share
of PEPSI in the NOIDA & NCR Beverage Market.
Though the process is an ongoing one but the decisions have to be
taken on a strong base, supported by facts and figures and that too on papers.
This support can only be provided with the help of an extensive and through
analysis of the market and the data collected thereof.
The objectives of the project were delivered to us express sly by the
Marketing Development Co-ordinator who was the lead or the project head
and we had to submit the day report to him along with the draft report. He
was the in charge of the project and gave guidelines and directions to
approach the project.
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The objectives of the project are:
To analyze, interpret and study the entire beverage market of NOIDA
& NCR.
Comparative study of the various brands, packs and flavors available
in the market.
Analysis of the strong and weak point of the competitors products and
compare it with PEPSI.
To assess the reach and feasibility of the product and give the output
for further investment for enhancing the distribution network along
with assessing the efficiency of the current distribution system.
Assess the promotional measures in the context to the sales of PEPSI
and focusing our study on the customer of company i.e., the retailers.
As obvious that any company is concern with the increase in sales of
its products, our project was in line with the companies’ objectives and all
steps incorporate in the project were directed to give an overview so as to
attain its objectives.
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The market research conducted by us was in accordance to
the company’s rules and policies which were quite material for the efficient
and effective results and inferences to be drawn from the entire process.
The market research was conducted in compliance of the given
guidelines delivered to us expressly to achieve the given objectives, which
were as under:
1. Profitability 4. Improvement
2. Sales 5. To satisfy the customers
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Research Methodology
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THE MARKET RESEARCH PROCESS
The entire project was divided into five phases and each phase had its
individual significance and supplemented each other. The process had to be
started from the grass root level and it was very important to understand the
market for this FMCG product, which is very fast in production, distribution
and consumption.
The five phases into which the project was divided were:
A. Route Riding
B. Retail Tracking
C. Corporate Tracking
D. Analysis of finding and observations
E. Segregating NOIDA & NCR for WAP and SAP
The entire process was more of a Descriptive Research type and
incorporated a formal study of the specific problems faced by most FMCG
companies an exploring the opportunities in the untapped market. The
survey was conducted on the basis of PEPSI product preference and
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evaluation of sales forecast in the new and underdeveloped
market including the evaluation of the advertising and promotional
measures. The data collected had to be systematically arranged, analyzed
and reported in a form congenial to take on the spot decisions.
The observation approach was adopted in the process by gathering the
data essential and material for the decision-making and with clear objective
of increasing the market share of PEPSI in the NOIDA & NCR market.
Customer preferences and satisfaction was also important in assessing the
market share but that was very clear that customers generally do not have
loyalty towards the product in the Beverage industry rather what matters the
most is the product availability which will be discussed later.
All the phases mentioned above have been discussed along with the
observations, problems, and other dimensions which have been encountered
and experience in detail in the following pages.
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A. ROUTE RIDING :
The Beverage Industry or to be more specific, the Soft Drinks Industry has
one of the most active network in term of its production, supply,
distribution, marketing, consumption and also personal relations at the very
second level of its distribution network. That is the reason why it is
sometimes said to be “Very Fast Moving Consumer Goods”.
Due to the above stated reason it becomes very essential to study and
analyze the market of these products from the grass root level. So in the Soft
Drinks Company as PEPSI, route riding becomes the first and foremost step
in any of the activities to be undertaken be it any official so we were no
exceptions.
During the very initial days we were required to exercise Route
Riding, the objective of which was:
To understand and analyze the market in its raw and basic form.
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To gain an in depth knowledge of the merchandising and
processing activities of the Route Agents and understand the Beverage
market.
To undertake the comparative study of the various brands and flavour
packs of all existing beverages or soft drinks
market and the market share and growth potential of each brand
individually.
To develop innovative ideas to enhance the distribution system.
Route Riding is basically accompanying Pepsi Vans along with the
route agents and understanding the way they conduct merchandising
activities right from the charged vans leave the depot to the entry of empty
vans back to the depot. The Route Riding phase was for the initial twinty
days in which we had covered twinty different routes.
The Route Riding is a crucial phase because the actual dealing with
the retailers and their dealing with the customers can be very efficiently
5
understood through this process which is important at all levels
of decision making in the industry.
The Routes i.e., the Pepsi Vans were charged and left the depot by
7:30 in the morning, accompanied by the Route Agent (R.A.’s). The RA’s
were given the route planners and the particulars of the products, flavors,
and quantities along with the billing materials. The vans had to cover the
entire route and the RA had to do the merchandising and sales against cash,
which was a significant feature of this industry. The targets were given twice
or thrice in a week that was a challenge for them and after achieving these
targets the RA’s was awarded with some special incentives. As there exists a
player like Coca Cola. So it had a lot to do with schemes, discounts and
other incentives.
The routes were allocated on the basis of individual areas and the
demand of the product in that particular area. The RA’s been responsible for
the accomplishment of their sales target on their routes and was given
incentives on achieving the targets. Not only this, the RA’s also had the
responsibility of moving the flavors and packs in proportion along with the
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proper display of the products for proper visibility and
arrangement of products in brand order along with “VISI purity”.
The RA’s had the responsibility of setting up Monopoly PEPSI Sales
Counters where no products except that of PEPSI would be available
amongst the soft drinks and especially of Coca Cola. These monopoly sales
counters enjoyed special benefits in terms of discounts, schemes, VISI’s
(fridges), display boards, glow signboards, wall paintings, banners, posters
and other incentives.
The RA’s had to achieve their sales target and surrender the daily
sales proceeds with the concerned Customer Executives along with the route
planner and billing materials and gate pass along with the details of sales on
their route.
The entire activities of the RA’s was controlled by the Customer
Executives, who also assisted the RA’s in achieving their targets and were in
charge of the sales performance in their assigned areas. A Customer
Executive had nine to ten RA’s under him and was responsible for their
performances as well. He was also concerned with the promotional activities
5
on his routes and handling of policy matters in the corporate
regarding supply to industrial canteens and cafeterias.
We as Research trainees were required to study and analyze the activities of
the RA’s and be familiar with the market. We had been provided Market
Analysis Sheets by the MDC in which we were required to record the
observations of the retail outlets on a particular route.
The observations, which were required to be recorded in, were:
The quantity of the cold and warm stocks of all brands and flavors
available at the outlet along with the outlet details.
Inquiring about the satisfaction of the retailers in terms of sales of
PEPSI products, schemes, discounts, combo offers, and the benefits of
promotional activities.
Inquiring about the satisfaction by the current distribution network in
context to product availability of all flavors packs or individual
flavors according to demand of customers, rates billings.
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Inquiring about the behavior and merchandising of RA’s in
accordance with the companies’ regulations and record complaints
against RA’s, company or products, if any.
Inquire about the performance of various brands and flavors packs
and customer’s response to those brands or flavors and also to
educate the retailers about various schemes and incentives to increase
sales volume.
Last but not the least, assessment of the effectiveness of, assessment of
the effectiveness of promotional materials and activities like, display
boards, glow signs, signage, wall paintings, posters, banners, racks,
shelves, counters, VISI’s, and also impact of nation wide advertising
on brand loyalty by the customers.
The information so collected was required to be filled in the Market
Analysis Sheet (specimen on the next page) and reported to the MDC along
with other information in order of their seriousness.
5
B. RETAIL MAPPING OF NOIDA &
NCR :
The Retail Mapping is the integral part of the project and the most crucial is
taking significant decisions regarding the enhancement of the distribution
network involving heavy investment on account of increasing the routes and
starting new routes and promotional measures on those routes to increase its
market share in NOIDA & NCR. The new routes, exploring new markets
required the decision to be supported with facts and figures which had to be
provided by the Research trainees on the basis of the survey conducted in the
market and processed data there of.
The retail mapping had to be conducted on the basis of the Retail
Tracking Sheet (RTS), which had been developed by the Marketing
Development Coordinator and Customer Executives of the NOIDA & NCR
unit which incorporated the retail outlets, their addresses, proprietor,
respondent etc and served as a vital database for all market since then for
PEPSI in NOIDA & NCR and had to be incorporated in the project in
accordance to the companies policies.
5
Objectives of Retail Mapping:
Segregating entire NOIDA & NCR for Strong Area Programme and
Weak Area Programme i.e., SAP and WAP.
Assessment of retailer’s performance.
Assessment of the level of promotional measures required for
increasing market share of PEPSI.
Collection of required information for making investment decisions
for the enhancement of existing routes and opportunities for new
routes in existing market as well as exploring new market.
Classification of all retail outlets in NOIDA & NCR into five broad
categories viz, On Route, Non Existence, Non Potential, Reachable
and Non Reachable under the head, Potential Retail Outlets.
The duration for the completion of the Retail mapping took duration
of 20 days. The entire survey was guided and directed by the Customer
Executive and Daily report had to be presented to him after assessment and
analysis along with other findings and observations. The Data had to be
5
classified in a systematic manner and presented in a predefined
format, which was further reviewed by the Marketing Development
Coordinator.
The Retail Mapping process incorporated of including of new outlets, which
have been omitted or newly opened, and the product availability on all these
outlets. The major thrust was on segregating the market for Strong Area
Programme and Weak Area Programme.
The Strong Area refers to the routes on which the sales targets are
met without much effort and have continuous demand for the products.
These areas are performing to the standards and are contented with the level
of promotion schemes and other sales boosting measures. The marketing
efforts are nominal in these areas because of the surplus demand and the area
of concern is only to ensure the proper and efficient supply of the products
to meet the demand. In the NOIDA & NCR market approximately 32% of
the market can be said to be strong areas and these areas include the well-
developed markets as shopping malls, movie theatres, convenios, hotels,
restaurants and bars etc. For these Strong areas, SAP only aims at
6
maintaining the performance of the product and enhancing the
sales volume. It is not the area of serious concern for the company.
On the contrary the Weak Area refers to those areas or routes, which
are critically low in sales and the targets, are tough to achieve and require
aggressive marketing support. The demand in these areas is fluctuating or
rather feeble. The routes are the area of concern for the company as the
demand is very low due to many reasons and the major one is the existence
of the player like Coca Cola in the market. Other reasons could be poor
distribution network, inadequate availability of the products on the outlet,
inadequate promotional measures and marketing support, undeveloped
market as that of the interiors etc.
These weak areas had to be identified and the cause of their inferior
performance had to be traced through the Retail Mapping and the company
had to be provided with the facts and figures to take legitimate measure on
the basis of the findings of the deficient performance of the product in these
areas. This involved the aggressive marketing strategy and heavy investment
decisions to strengthen these markets. For this purpose the classification of
the outlets into five categories was very crucial along with the other findings
6
and observations discussed later. These five heads of
classification have been discussed as under.
ON ROUTE :
It refers to the retail outlets, which are covered by the Route Agents
and visited daily for sales and merchandising. The outlet is visited
daily and actively involved in the sales of all brands and flavor packs
of PEPSI.
NON EXISTENCE:
It refers to the outlets which were merchandising the product are no
more in existence, i.e., they have diversified their business activity or
have closed.
NON POTENTIAL:
It refers to those outlets, which are in existence but have very low
potential in terms of sales or are not keenly interested in
merchandising the products of soft drink.
A careful assessment had to be done in case of Non Potential outlets,
as they would turn to be potential in near future. It was also the area of
6
operation of project to motivate these Non Potential outlets
to undertake the merchandising of PEPSI.
POTENTIAL OUTLETS :
It refers to those outlets, which have the potential for the merchandising of
PEPSI and have the required investment capabilities and can be the
profitable Point Of Purchase of PEPSI by the customers. There were cases in
case of these potential outlets, which were already merchandising PEPSI,
and those, which did not, dealt with beverage products. The possibilities of
setting monopoly counter were very fair at these outlets and were given
special attention. The Potential outlets had to be further classified in two
heads as below:
o REACHABLE POTENTIAL OUTLETS :
It refers to those Potential outlet which are reachable i.e., the products can be
made available with the PEPSI vans. The reachability decision had to be
taken in context to the accessibility of the vans at these outlets.
6
o NON REACHABLE POTENTIAL OUTLETS :
It refers to those Potential outlets which are not accessible by the PEPSI
vans. These outlets had to be considered because the sales volume can be
increased at these outlets and so alternative method of distribution and
promotional activities have to be evaluated and worked upon.
CORPORATE MAPPING :
NOIDA & NCR being an entirely industrial city had huge potential
for the sales of PEPSI in corporates as these concerns had factories, offices
and canteens and the officials and workers base was very strong. The
process of Retail Mapping was followed by the Corporate Mapping, which
incorporated of tracing of the organizations and assessing the market for
PEPSI in these areas. Apart from these the database had to be updated to
turn the non-potential market in the corporate into profitable liaisons for the
increment of sales volume.
6
THE OBJECTIVES OF CORPORATE MAPPING WERE:
Trace the organizations with and without canteens and cafeterias
and estimate the market for PEPSI.
Estimate the brand preference of PEPSI and COKE in the
corporates and the reasons thereof.
To review the product performance and satisfaction along with the
expectations of the customers in corporates including PEPSI
Dispenser Equipments.
To assess the product availability and demand of the product
(Traffic) in these organizations as well as when the product has the
optimum consumption e.g. daily, delegations, meetings, parties, or
other occasions and the customers i.e., whether the officials or
workers or both.
6
To ensure efficient supply and record any complaints or
grievances thereof.
To assess the promotional measures being adopted by Coca Cola
for tapping these markets and locate the weak points in corporates
having Coca Cola counters to convert them into profitable
opportunities.
The Corporate Mapping was the supplementary programme in the
project to boost the sales performance of PEPSI in East Uttar Pradesh and
capture the market share of its nearest competitor. The analysis and findings
were recorded on the format provide by the company accompanied by the
list of findings and observations in order or their preference and seriousness
along with all the relevant details about the organization. The matters were
discussed and analyzed carefully by the MDC.
The corporate matters had to be given a special care as these had huge
potential for the product. The specimen copy of the Corporate Mapping
format is attached for reference. The findings and observations have been
discussed in the coming pages.
6
D. ANALYSIS OF FINDINGS AND
OBSERVATIONS:
The main objective of the company is to increase the brand preference
and market share so any information material form this point of view had to
be take into account along with the formats provided by the company for
predefined information recording and analysis of those recordings and
present the information in an organize and systematic manner in a condensed
form reflecting the actual position of the market.
The information had to be recorded in the format along with the
relevant information as per the objectives of the research and an analysis of
that information had to be made and present them in an understandable
format so that immediate inferences can be drawn. Generally those
information had to be presented in percentages and the other findings and
observations had to be evaluated and a list of findings had to be arranged in
order of their seriousness and areas of serious concern along with the outlet
details.
6
After the analysis sheets and formats have been
surrendered to the C.E’s after analysis by the trainees it was further analyzed
and evaluate by him and a brief analysis was made each day of the daily
report. The CE’s further forwarded these reports after retaining the reference
copy, to MDC for further review and reference.
6
E. SEGREGATION OF NOIDA & NCR FOR
SAP AND WAP :
As discussed earlier that the major objective of the Retail Mapping of
NOIDA & NCR was to segregate the market for PEPSI for the Strong Area
Programme and the Weak Area Programme. These Programmes have been
discussed under the Retail Mapping Head. The Data and fact collected by
the survey had to be analyzed and presented in a systematic form in order to
draw meaningful inferences.
The finding of the Route Riding and the Survey conducted during the
Retail Mapping and the Corporate Mapping were combined together and
analyzed together to reach a final report ie, the RETAIL MAPPING
SUMMARY or THE CONDENSED DRAFT REPORT, which gave the entire
picture of the actual position if PEPSI in NOIDA & NCR. The report so
prepared was on the basis of the Retail Tracking Sheet and the other
supplementary finding and observations were considered to reach a
consensus of declaring the route as a weak area or a strong area.
6
The reports were analyzed thoroughly by the Customer Executives and a
meeting was held for the assessment of the routes and the reasons of
unfavorable performance in the weak areas and how to improve the sales on
those routes. The discussion comprised of the further investments for the
enhancement and extension of the routes and the level of promotional
measures required in these areas. The performance of Coca Cola was also
reviewed simultaneously and a comparative study was made to assess the
performance and growth in the industry. These data and figures were
compared with that of the last year and a growth percentage was reached
which also served as a basis of declaring an area as a Weak Area.
As already mentioned PEPSI is a VFMCG so the marketing strategies
are going to be very dynamic in nature. The Customer Executives had to
formulae day to day strategies and these were communicated to RA’s in the
morning when they were going to leave the depot and this interaction among
R.A.and C.E. was to be known as Gate Meeting.
7
The programmes were to be based on the seriousness of the problems and
accordingly a mild or aggressive marketing, promotional and investment
programme was to be formulated.
7
Findings &
Observation
7
FINDINGS & OBSERVATION
The reports of each phase of the project had to be supplemented by
the information, data, facts and figures and significant findings and
observation to support the feasibility of decisions to be taken on the
basis of the Retail mapping Summary or the CDR. The information
so recorded in each phases of the project had to be listed in order of
their relevance and seriousness and presented in a form to facilitate
immediate inference.
Some of the important observations have been listed below:
Soft drink business’s behavior is not governed by brand loyalty so the
availability of the right brand, at the right place, at the right time is
the key for winning consumer in soft drink business.
The most important and satisfying observation was that, PEPSI had
approximately 64% market share in the soft drinks market in NOIDA
& NCR and some of its brands like Mirinda Orange and Mountain
7
Dew were performing above standards apart from PEPSI
Cola in
spite of the Coca Cola with two cola flavor packs i.e., Coke and Thumps
up.
The present distribution system of PEPSI is the best in the entire
FMCG industry in NOIDA & NCR and the major strength
of PEPSI. The enhancement in the distribution network would
definitely increase the market share of PEPSI.
The retailers played a very critical role in the increment in the sales
volume of the product and the had to be kept satisfied in order to
increase the market share by offering better schemes, discounts,
display materials such as VISI’s, racks, counter, signage, wall
paintings and better amount for purchase of shelf space for display.
The existence of sub-dealers and super stockiest are also the major
area of problem, as they do not move the schemes and other display
7
materials and incentives information to the retailers, which
is one of the reasons for the dissatisfaction of retailers.
The cut throat competition between PEPSI and COKE had lead to the
never ending cola war and price war which has brought down the
profit margins which is one of the major grievances apart from the
common complains pertaining to schemes, incentives and display
materials.
The other major issue was the supply of PEPSI from the bottling
plants in Delhi and Punjab against the company policies. These plants
supplied the products at discounted rates and violated merchandising
principles of PEPSI.
Another critical issue was the presence of duplicate products of
PEPSI in the market. The details of these outlets have been
surrendered to the company for action against these outlets.
7
The position of PEPSI in the corporates was not up to the
mark and Coca Cola had a better scene in this context. One of the
reasons can be assigned to the product positioning of PEPSI and
Coca Cola.
7
Analysis
7
MARKET STATUS OF PEPSI PRODUCT
7
PREFERENCE OF SOFT DRINKS IN QUANTITY
7
RATIO OF CONSUMPTION OF SOFT DRINKS
PER 100 CONSUMERS
The other statistics and finding have been presented in the form of various charts on the coming pages:
8
DEMAND OF SOFT DRINK
8
CONSUMTION OF PEPSI BRAND
PEPSI, 40
M.DEW, 15MIRINDA, 15
SLICE, 15
7UP, 10OTHERS, 5
PEPSI
M.DEW
MIRINDA
SLICE
7UP
OTHERS
RATIO OF PEPSI AND COKE IN NOIDA & NCR
8
PEPSI, 45
COCK, 44
OTHERS, 11 PEPSI
COCK
OTHERS
8
Key Findings
8
KEY FINDINGS
Service aspect of agencies is very effective, they deliver their product
according to the demand a just in time.
After conducting the market survey of retailer in Ghaziabad city,
I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of
PET.
After analyzing the market and calculate the weightage, the result
comes out that Mountain Dew is the leading product of Pepsi-Cola.
Consumers do have a demand for 200 ml and 2 lit. bottle.
Retailers have problem in display material.
Most of the place like cinema hall and educational institutions are
dominated by Pepsi-Cola.
Retailers have complaint regarding the PET, that more better quality
bottle should be used.
Aquafina (Pepsi-Cola) in Ghaziabad city dominated Kinley (Coca-
Cola) mineral water.
Retailers have a demand of some offers and free gifts.
8
Kinley soda (Coca-Coal) is also dominated by Lehar soda
(Pepsi-Cola) in Ghaziabad city.
Maaza (Coca-Cola) is also dominated by Slice(Pepsi-Cola).
It was seen that Lehar Soda (1 lit.) in particular remains short during
the season.
In the market there is only a retailer on which the sale of the different
product of different company depends.
8
Recommendations
8
RECOMMENDATIONS
The Project Retail Mapping was concerned only with providing the
organization with all the necessary information required to strengthen the
position of PEPSI in NOIDA & NCR in the form of reports incorporating all
information in an analyzed and summarized form. But some critical and
major issues, which have been identified on account of extensive analysis,
required suggestions to be put forward on the basis of the current market
scenario.
There should be uniformity in, schemes, and discounts, which are
offered to the retailers and should be based on a specific parameter
such as sales volume, to avoid dissatisfaction and biasness among the
retailers.
Activities of sub dealers and super stockiest should be controlled and
checked in order to ensure fair prices and distribution of schemes and
incentives to small retailers to avoid discontent among smallholdings
and outlets.
8
Every possible step should be taken for the satisfaction of the retailers,
as they are the most important supplement to the sales promotion
measures and nationwide advertising campaigns of the company in
context of boosting the sales and enhancement of the brand image of
PEPSI.
The operations of the bottling plants of the surrounding territories
should be controlled in order to ensure that they do not supply the
product in other territories not under their area of operation.
The company should modify its advertising strategy and educate the
customers about its age-old existence and enhance its brand image. This will
appeal to the target customers of middle and older age groups apart from the
younger generation in which PEPSI has a good hold.
First and foremost things are that, whatever the policy is going to be
formulated it should not be same for all the areas. Different policies
should be framed and implemented at different areas by looking and
keeping various variables in the mind like buying habits, preferences,
8
education level financial position of that particular area and standard if
living etc.
Rural market being a very potential segment needs very quick and
prompt efforts to be taken to capture this high volume market.
Many retailers complained regarding irregularly in visit by the
executives. They also said that executive give very bad response to
their complaints. It is necessary that executive should make frequent
visit to cover each outlet and try to provide them best
Pouches, foreign particles were found in few bottles, so proper quality
control measures should be implemented as company’s reputation are
at stake.
There is a great market of soda (1 Lit.) but the supply of this pack is
very poor, so the supply should be made possible quickly.
Quality of PET bottle should be improved so that most problems can
be minimized.
9
Soft drink is still considered a treat virtually a luxury, so it
possible company should cut down its price especially of cans.
Supply of posters, glow-sign boards, tin boards, banners and sun pack
sheets etc should be made at regular interval.
Claim should be provided to the deserving retailers.
Wall painting should be made regularly in the area, as it is a good
medium of advertisement.
Proper attention should be given to the retailer’s problem so that they
take interest to increase the sale.
Proper advertisement should be made at railway station, bus stand,
posh area, major market and economies place etc.
A company may create favorable impression among the youth if they
sponsors small events like college festivals, university programs,
school functions, fashion shows, quiz programs etc.
Retailers need display material. To enhance the marketing of the
product.
9
Limitations
9
LIMITATIONS
The retailers in many cases reluctant to answered many questions.
The respondents may be biased on influenced by some other factors.
Time and money were the greatest limitation in carrying out the
survey.
A number of retailers (pan-shop) being illiterate, it took us lot of time
in collecting information.
The mere information which we get from the retailers is not sufficient
to arrive at a conclusion.
The seasonal changes affect the sell.
9
Conclusion
9
CONCLUSION
The business of Soft Drink industry is significantly based upon the impulse
buying, so it is very necessary to Merchandise products of PEPSI efficiently
and present them in such a manner so that it can motivate the consumer and
generate a thirst in consumer to consummate it.
Though, PEPSI has a strong position in NOIDA & NCR with the
support of its efficient distribution network, aggressive marketing efforts and
advertisements along with attractive schemes but there still exists potential
market in NOIDA & NCR to be exploited and a suitable Weak Area
Programme or the Strong Area Programme has to be formulated to improve
its market share depending upon the area under consideration.
9
Soft drink business’s behavior is not governed by brand loyalty
so the emphasis is not only on creating the market but also on retaining it.
The availability of the right brand and flavor pack, at the right place, at the
right time is a key for winning the customer in soft drink business. Keeping
these facts in mind it becomes very important to treat the retailers with
concern and satisfy them by various measures and so that they are loyal
towards PEPSI. Public relation is also critically important in this industry.
9
Annexure
9
QUESTIONNAIRE
Name : ____________________________________
Address : ____________________________________
____________________________________
Contact No. : ____________________________________
Q.1. Are you aware of Pepsi house hold scheme ?
a. yes b. no
Q.2. Do you provide home delivery of Pepsi ?
a. Yes b. no
Q.3. How many houses?
Q.4. Which brand of soft drink do you sell?
a. Only Pepsi-Cola b. Only Coca Cola c. Both.
Q.5. Which quantity of soft drinks you have?
a. 200 ml b. 300 ml c. 500 ml
d. 2 lit. e. All.
Q.6. Which brand of soda do you sell?
9
a. Leher Soda (Pepsi-Cola) b. Kinley(Coca Cola)
Q.7. Which brand of mineral water do you sell?
a. Aquafina (Pepsi-Cola) b. Kinley (Coca Cola) c. Others.
Q.8. Chilling equipment owned by you?
a. Only Pepsi-Cola b. Only Coca Cola c. Both.
Q.9. Do you get timely supply of these brands with proper schemes?
a. Yes b. No.
Q.10. Is your chilling equipment working properly?
a. Pepsi-Cola = Yes…. No….
b. Coca-Cola = Yes…. No….
Q.11. During breakdown of chilling equipment who gives better service?
a. Only Pepsi-Cola b. Only Coca Cola c. Both.
Q.12. Whose racks do you own?
a. Only Pepsi-Cola b. Only Coca Cola c. Both.
Q.13. Is there increase in sales due to display of the racks?
a. Yes b. No.
Q.14. Availability of glow boards provided by company through promotional scheme.
9
a. Yes b. No.
Q.15. Are your customer aware of PEPSI HOUSE HOLD SCHEME?
a. Yes b. No c. Cant Say
Q.16. Has it effected your sale?
a. yes b. no c. cant say
Q.17. What %tage increase you got after this scheme?
a. 5-15% b.25- 30% c. more than 50%
Q.18.
200 ML 300ML
STOCK REGULAR
PCI CCX PCY CCX
600 ML 2 LIT
STOCK PET
PCI CCX PCI CCX
1
Bibliography
1
BIBLIOGRAPHY
Books :
Marketing Management (Written by Philip Kotler)
Principles of Marketing (Written by C. B. Gupta)
Research Methodology (Written by C. R. Kothari)
Web Links :
Official Pepsi Website
http:/pepsiworld.comhttp://pepsico.com
Varun Beverages ( Subsidiary of RKG Group )
http://rkjgroup.com
Other Resources
http://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Market_analysishttp://www.mbaofficial.com/mba/mba-courses/research-methodology/http://www.businessdictionary.com/definition/research-methodology.html
