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“Market reaserch of PEPSICO in Jamshedpur “
A report submitted to Delhi Business School, New Delhi As a part fulfillment MBA+PGP
Graduate program (industry integrated) in Entrepreneurship and business.
Submitted to : Submitted by :
Director Academics Awadhesh Kumar Pandey
Delhi Business School DBS/09-11/W- 095
New Delhi January 2009
PTU Roll : 910849013
Internal Guide :
Mr. Ramesh Bagla
Delhi Business School
New Delhi
Delhi Business School
B-II / M.C.I.E., Mathura Road, New Delhi
Website: www.dbs.edu.in
ACKOWLEDGEMENTS
Before I get into the thick of the things I would like to add a few heartfelt words for the
people who were part of this project in numerous ways….people who gave unending
support right from the stage the project was started, appreciated and encouraged when
being depressed.
In this context I would like to express my gratitude towards my parents and family members
who have constantly supported and played a pivotal role in shaping my career.
I take this opportunity to express my gratitude to Mr. P.S. Kumar (Director), Mr. Subroto
chakarwarty (T.D.M) and Mr. S.K. Bahl (Manager, HR) of S.M.V. Beverages who have given
me the opportunity to do the project in their esteemed organization.
I would also like to thank Mr. shukla (A.D.C.) of SMV Beverages without whose support this
project couldn’t have been in the form in which it is now. I owe more than what I can
mention….mostly for teaching me to see the silver lining in every dark cloud.
I also owe my regards to Mr. Harmeet Singh (CE) and Adarsh agency (Distributor) for their
co-operation in the successful completion of the project.
This has been one long project and naturally many people get associated with it. Any
bouquet for the merit in this book should go to their door. I would like to thank the staffs
and officials of SMV Beverages for their co-operation in providing us with all the
information, which were required by us.
I owe my sincere gratitude towards my faculty guide MR.RAMESH BAGLA of DELHI
BUSINESS SCHOOL for extending the support towards the completion of the project.
And finally I would like to thank my friends for their unending support.
DECLARATION
I Awadhesh kumar pandey hereby declare that my internship training report entitled
“PEPSICO STRATEGY & MARKET SHARE” submitted to S.M.V. Beverages Pvt. Ltd, Jamshedpur
for the award of the certificate of the training program and to Delhi Business School, New
Delhi for the award of the degree Post Graduation Diploma in Management. This report has
not been submitted to any other organization, either in part or in full for any purpose.
Date:
[ AWADHESH KR. PANDEY ]
Table of Content
PART-1 PAGE NO
Certificate
Acknowledgement
Declaration diven by the student
Table to contest
PART-2
Key Areas
Pepsi Co.
Soft Drinks Industry In India
PEPSI Co. in India
Origin of Soft drink in Jamshedpur
SMV Beverage Ltd.
One day in plant
Pepsi Co packaging process
Organisation chart of the company
Organisation chart of Hydrabad marketing
Every dealer survey (EDS)
PLAN - O - GRAM
Distribution Channel
SWOT Analysis
PART – 3
Introduction
Description of field
Research Methodology
Market Research
Marketing Activity
PART-4
ANALYSIS PART
Analysis of market research
Analysis of Pepsi product in Jamshedpur market
Findings
Sugessitions
Limitations
Conclusion
Bibliography
Questionnaire
Appendix/ annexure
EXECUTIVE SUMMARY
PepsiCo organization initiated this project to assess the market potentiality of Pepsi in the
present market. The main motive of this project is to identify the potentiality of the Pepsi
and their other product those they are producing.
The project methodology involved carrying out the preliminary research to gain insight
into the present market – sub segment, current trends, growth, players and potential.
Analyzing the requirement and designing questionnaire. Taking interviews, conducting
personal interviews of different type of demographic factors under like age, income, status,.
Collating & analyzing data and identifying leads that qualifying for an offering and
formulating recommendation for S.M.V. Beverage Jamshedpur.
In the findings researchers got that Pepsi company is one of the best soft drink
company , because it maintain the quality, taste and also the Company is maintain good
relationship with retailers and they are also distributing their product to their retailers when
they want and the Company also provide them in time.
Theory is important, because it enhances our understanding of business phenomena
and helps managers to think about what they should do. Summer training or internship
training program provides opportunities to apply this theory into the real business practice.
In the present scenario of competitive marketing, every business institution requires to
prepare strategies for efficiently utilizing their available resources and environmental
opportunities. At this stage of my learning process I also feel needs for knowing different
business strategies that a business organization follows. In this training period I got
opportunities to study on some marketing strategies of PepsiCo. And in this report I am
going to explain some of those strategies which I had applied in practical during my summer
training program.
KEY AREA
The key area of my summer training was “PEPSICO STRATEGY OF MARKET SHARE”.
The company had divided his retail outlets on the basis of area wise and character wise. Each
of the division is having mainly three types of outlets.
AREA WISE : - The area of my summer training was “Jamshedpur” and according to
the company the whole training area was divided into three part.
INNER CIRCLE : - These are the main selling point of a company or heart of a city.
In inner circle we mainly consider those selling point or retailers shops which come under the
main market area.
OUTER CIRCLE: - These areas are adjacent to the main market area, which is a
mixture of residential areas and market areas. In these areas we mainly talk about those
retailers’ shops, which are placed in the residential areas and quite away from the main
market..
OUTSKIRTS: - These areas are quite away from the main city and the main market,
or the interior areas of the towns.
CHATACTER WISE: - Again there is a division of outlets on the basis of characters
(type of work done by the retailers) and there are again three types of outlets.
CONVENIENCE OUTLET: - These types of outlets include general stores, beetle
shops, stationary shop, medical shop and such type of other shops.
GROCERY OUTLETS: - These types of outlets include grocery stores which
indulge in selling of foods and related things used in the home.
EATERY: - It includes restaurants, fast food joints etc.
Type Public (NYSE: PEP)
Founded 1965
Headquarters New York, USA
Key people Indra Nooyi, Chairwoman, President
& CEO
Industry Food and beverage
Products :
Pepsi
Tropicana Products
Gatorade
Lay's
Doritos
Frappuccino (for Starbucks)
Mountain Dew
Operating income $6.44 billion USD (2006)
Net income $5.64 billion USD (2006)
profit margin 16.06%
Employees 153,000(2005)
GROUP OF COMPANIES
Frito-Lay North America
PepsiCo Beverages North America,
PepsiCo International
Quaker Foods North America
SOFT DRINK INDUSTRY IN INDIAIndia with a population of more than 1.1 billion is potentially one of the largest
consumer markets in the world after china. The consumer market is popularly known as the
FMCG market or the fast moving consumer goods market. Soft drinks come under this
category. Soft drink is basically purchased in India basically for two reasons namely to
quench thirst and for refreshment. The Indian economy currently is passing through a bullish
phase with increasing per capita income. Subsequently the lifestyle of the Indian consumer is
also changing with increased spending on entertainment, refreshment etc. that is why soft
drink companies are looking forward to India with great enthusiasm in the future to increase
their revenue.
The soft drink industry in India dates back to the 1940’s when Parle introduced the first
branded soft drink called gold spot. Cola giant coca-cola was the first foreign soft drink
company to setup its shop in India in 1965. Coca-cola made a very good beginning and
dominated the market right from the word go. It faced no competition at that time. The
marketing people did not even need to publicize coca-cola. This extraordinary success of
coca-cola can be attributed to the following factors,
Absence of contemporary competitive brand.
The giant image of coca-cola in the western countries preceded their entry into the
Indian market, and
Indians at that time were very fond of foreign goods.
Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970.
Before this they had introduced a cola flavored drink called pepping which they had to
withdrew in the face of stiff competition from coca-cola. But the overtly conservative Indian
government of that time with special interest in safe guarding the interest of the Indian
companies started insisting that coca-cola should agree on the following points in order to
continue in India. Coca-cola decided to windup its operations in 1977 rather than bowing to
the Indian government. The main demands of the Indian government were,
Dilution of equity, as the government felt that lots of foreign currency was being
wasted.
Manufacturing of the secret concentrate in India.
Disclosure of the chemical composition of the concentrate.
The exit of coca-cola left a large vacuum in the soft drink market. But this also accelerated
the growth of several Indian soft drinks. Many new soft drinks like frooti, jump-in etc were
launched in the form of tetra pack. However the bottling plants and the distribution networks
of these companies were not up to the mark and left much to be desired. It took these
companies almost one year to come up with new flavors like Campa cola, Rush etc. to
survive in the industry.
However Parle, the pioneer in the soft drinks market blazed its way to national prominence
with their product Thumps Up bearing the slogan ‘happy days are here again’ which became
a craze. This particular slogan helped to win over the loyalists of coca-cola who were in a
state of cola shock or cola depression! Soon the soft drink industry started registering
phenomenal growth rates and all parley products namely Gold Spot, Limca and Thumps Up
became the brand leaders in their own segments. In spite of this the soft drink market had a
huge untapped potential.
In 1990, coming of the multinational brand Pepsi and immediately started giving stiff
competition to Parley and Coke. The parent company of Pepsi was founded in 1890 at North
Carolina in USA. Its CEO is Roger Enrico. PepsiCo India Holdings Pvt. Ltd. in
headquartered in Gurgaon and its CEO is Ms. Indra Nyui. In India it has 34 bottling plants of
which 8 are company owned bottling outlets (COBO) and 26 are franchise owned bottling
outlet (FOBO). SMV Beverages is a franchise owned bottling outlet. Coca-cola reentered the
Indian market in 1993 in collaborations with Parley India Ltd.
PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government- owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands
was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others
claim that firstly Pepsi was banned from import in India, in 1970, for having refused to
release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the
market shortly afterwards. These controversies are a reminder of "India's sometimes
acrimonious relationship with huge multinational companies." Indeed, some argue that
PepsiCo and The Coca-Cola Company have "been major targets in part because they are
well-known foreign companies that draw plenty of attention." PepsiCo has grown to become
one of the country’s leading food and beverage companies. One of the largest multinational
investors in the country, PepsiCo has established a business which aims to serve the long
term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S. $1 billion since the company
was established in the country. PepsiCo provides direct and indirect employment to 185,000
people including suppliers and distributors.
PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including Pepsi Foods Ltd,
Frito - Lay India, and Tropicana Beverages Company. The company, through its subsidiaries
manufactures, bottles, and exports fruit juices and carbonated beverages and packaged snacks
such as Lays, Ruffles, Fritos, and Cheetos. PepsiCo India is based in Gurgaon, India.
PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver
joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes
iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low
calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina
drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based
drinks – Tropicana Nectars, Tropicana Twister, Slice, and the new brand Nimbooz by 7up
with real lemon juice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola
add to the diverse range of brands.
In snacks segment - PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty
snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s
Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional snacks under the
Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low
fat and roasted snack options enhance the healthful choices available to consumers. Frito
Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil
to significantly reduce saturated fats and all of its products contain voluntary nutritional
labeling on their packets. The group has built an expansive beverage and foods business. To
support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company
owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division
has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making
tomorrow better than today. PepsiCo’s commitment to living by this vision every day is
visible in its contribution to the country, consumers and farmers. PepsiCo India's agri-
partnerships with farmers help farmers across the country grow and earn more.
PepsiCo's involvement in Indian agriculture stems from its vision of
creating a cost-effective, localized agri-base in India by leveraging farmers’ access to world
class agricultural practices. PepsiCo India worked with farmers and State Governments to
improve agri sustainability, crop diversification and raise farmer incomes. PepsiCo helped
transform the lives of thousands of farmers by helping them refine their farming techniques
and raise farm productivity, and customized solutions to suit specific geographies and
locations.
The most ambitious project is a joint program, launched in 1989,
between PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana and Punjab
Agro Industries Corporation (PAIC) in Chandigarh. The program focuses on evolving
agricultural practices to help Punjab farmers produce internationally competitive products.
Over the last five years, PepsiCo has also collaborated with the Thapar Institute of
Technology to develop a high quality potato seed program.
PepsiCo was a pioneer in the concept of contract farming under
which the company transfers agricultural best practices and technology and procures the
produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acre research
and demonstration farm in Punjab to conduct farm trials of new varieties of tomato, potato
and other crops. The program, which includes seed production, has successfully evaluated the
following crops,
Several varieties of basmati rice more than 200 varieties and hybrids of chilli
25 varieties and hybrids of corn
More than 60 varieties of peanut
More than 100 varieties and hybrids of tomato.
Additionally, the development of new tomato varieties has helped increase total annual
production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have
more than tripled from 16 tons to 54 tons per hectare.
Under the program, 6 high-qualities, high-yield potato varieties have also been introduced to
Indian farmers. These new potato seeds have helped to increase farm income and enabled
PepsiCo to procure world class chip-grade potatoes for its Frito Lay snacks division. The
company has partnered with more than 10,000 farmers working in over 10,000 acres across
Punjab, U.P., Karnataka, Jharkhand West Bengal, Kashmir and Maharashtra for the supply of
potatoes. PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate barley
in a tie up with the United Breweries Group. PepsiCo India’s technical team also
implemented a high quality seed program to deliver early generation and disease free seeds to
farmers.
Tropicana – Tropicana product is an American based company, and was founded in 1947 by
Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by PepsiCo,
Inc. Pepsi offers the wide variety of products to meet the choice and preference from fun for
your items to the products choices that contribute to healthier life style.
KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS PVT.LTD.
PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani 'Nimbooz by 7Up'
PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus paani 'Nimbooz by 7Up'.
The product, with real lemon juice, no fizz and no artificial flavors’, will be available in three
packaging formats of 200 ml returnable glass bottles, 350 ml PET and 200 ml tetra packs,
priced at INR 10, INR 15 and INR 10 respectively.
PepsiCo India Holdings Pvt. Ltd. to Launch Lemon Drink
PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the lemon
drinks category and has plans to introduce a product under 7up brand ahead of the summer
season. The new product would be less carbonated and is targeted at the mass market for on-
the-move consumers.
Headquarter : New York, U.S.
Area served : Worldwide.
Industry type : Food and non alcoholic beverages.
Products : Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice, Tropicana
products
Nimbooz juice, Aquafina, Fritos, Cheetos, and Lays.
Key person : Indra Krishnamurthy Nooyi (president), and (CEO).
ORIGIN OF SOFT DRINK IN JAMSHEDPUR
Late Charan Singh is credited with initiative to set up Soft drink industry in the city.
He was a resident of Phagwara, Punjab and he used to sell soft drink in carts. Domestic
tension forced him to march to Jameshedpur 50 years ago to seek a living for him. Then he
set up his own machine and started bottling without any brand name. Today his son Mr.
Sundar Gurudev is carrying out the legacy, which his father had left behind. This plant
operates only 3 months (summer). Even today Jamshedpur remembers the great exponent
THANDA WALA.
The credit of establishing Jamshedpur in the soft drink map goes to late Dharamchnd
Kamani. During the course of his business trips he was struck with the idea of setting up of a
soft drink industry in Bihar. June 1967 was significant for soft drink industry in Jamshedpur.
S.M.V. BEVERAGES Pvt. Ltd.
Introduction:
M/s SMV Beverages Pvt. Ltd., Jamshedpur is a franchise owned bottling plant
(FOBO) is located on the Tata Kandara road in Adityapur Industrial Area at Jamshedpur and
producing Pepsi range of bottled soft drinks, viz. Pepsi, Mrinda, 7up, Mountain Dew, Slice
and Soda and it has now become a house hold word in the state of Jharkhand. The previous
name of SMV was STEEL CITY BEVERAGES, but in March 1999 steel city beverage taken
over by Mr. S. K. Jaipuria From Mr. N. K. Kamani along with Rushab Marketing company.
He was very much enthusiastic to increase the production and sales and to nature the whole
market of Jharkhand. He established another plant in the same name of SMV Beverages Pvt.
Ltd. And increase the production from his new plant is 600 bottles per minute.
Simultaneously a new market came in name of Hyderabad Marketing Company, which is
creating the needs of whole Jharkhand state.
The company symbolizes self reliance in technology and ranked as the best bottling company
of the country in terms of quality, efficiency, and productivity. Till 1998 it was under its
chairperson Smt Kokum Kamani and the country has constantly bagged numerous awards
in various occasions for quality assurance and productivity. In 1993 it bagged top honors for
the best quality conscious plant among all the Pepsi bottling companies in India. Steel City
Beverages Pvt. Ltd. Was established in the year 1967 and production commenced in March
1969. At the very start company installed state of art machines and technology for the
production and bottling of soft drink. The bottling plant with a capacity of 220 bottles per
minutes was totally automatic and also had a modern state of art intermix machine for
bringing forth the right blend of flavors. The company constitutes to adopt innovative
technology in keeping with its policy of constant entered into an agreement with Pepsi food
limited for the production and sales of soft drinks for the people of Jharkhand. Right now
there is only one bottling plant of Pepsi in Jharkhand and it cater the need of all the Pepsi
products in Jharkhand. Entire state is divided into three territories Jamshedpur, Ranchi, and
Dhanbad, and one territory development officer controls each territory.
ENVIRONMENT SCANNING:
The process by which organization monitors their relevant environment to identify
opportunities and threats affecting their business are known as environment scanning.
The external environment in which S.M.V. Beverages Pvt. Ltd. exists consists of a
bewildering variety of factors. These factors (may also be termed as influences) are events,
trends, issues, and expectation of different interested groups. These factors are explained
below.
Events are important and specific occurrences taking place in different environment
sectors.
Trends are the general tendencies or the courses of action along which events takes
place.
Issues are the current concern that arises in response to events and trends.
Expectations are the demands made by interested groups in the light of their concern
for issues.
By monitoring the environment though environmental scanning, the S.M.V. BEVERAGES
Pvt. Ltd. consider s the impact of the different events, trends, issues, and expectation on its
strategic management process. Since the environment facing organization is complex and its
scanning is absolutely essential, strategist has to deal cautiously with the process of
environmental scanning is collected systematically. Information related to markets and
customers, the changes in legislation and regulations which have a direct impact on an
organization’s activities, government policy statements pertaining to S.M.V. BEVERAGES
Pvt. Ltd. business and industry and so on , could be collected continuously to monitor
changes and take the relevant factors into account.
S.M.V. BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with specific
environmental issues from time to time. Such studies may be conducted, for instance, when
S.M.V. BEVERAGES Pvt. Ltd. has to undertake special projects, evaluate existing strategies,
or devise new strategies. Changes due to unforeseen development may also be investigated
with regard to their impact on the organization. Today S.M.V. Beverages Pvt. Ltd. stands as
a proud monument the great visionary its founder Late D.N. Kamani and strides forth towards
progress and prosperity for the fulfillment of the ideas of its revered founder.
ONE DAY IN PEPSI PLANTIn summer, when the mercury level crosses 40˚F we wish to have ice creams or cold
drinks only. And it is as like a dream, if one gets the chance to visit the production unit of a
cold drink plant, and also gets opportunity to have cold drinks without any limit and cost on
such a hot day. Tuesday, 19th of May 2010 was one of the hottest days in Jamshedpur of this
year’s summer and also a dream’s day for me when I got such an opportunity to visit the
production unit of pepsi of S.M.V. Beverages Pvt. Ltd. Jamshedpur.
Here I want to share my experience of visiting the production unit of pepsi and knowledge I
gained after seeing the production processes of different brands of pepsi. But before going
into the deep I would like to thank Mr. Dhananjay Kumar (M.E), who changed the hottest
day into my dream’s day and also to all staffs of S.M.V. Beverages Pvt. Ltd. Jamshedpur
for guiding me during this visit and sharing their vast knowledge and experience with me.
Pepsi production process:
Any cold drinks (soft drinks) generally contains
Water
Sugar
Flavors or fruit pulp
Chemicals
CO2 gas (in carbonated soft drinks)
The below four ingredients are added with the first ingredient i.e. water and cold drink is
prepared. Here in S.M.V. Beverages Pvt. Ltd. Jamshedpur also the same ingredients are
used to prepare pepsi and its’ other brands. All these ingredients are added at different stages
by different processes. The diagram in the next page represents the flow or sequence of steps
involved in S.M.V. Beverages Pvt. Ltd. Jamshedpur for manufacturing of pepsi products.
Pepsi products are available in different SKUs (stock keeping units) or packs, e.g. glass
bottle, pet bottle, metal can, tetra pack etc. the preparation of main liquid or drink is same but
the machines and equipments used for filling in different SKUs are different.
Process flow diagram
During my visit to S.M.V. Beverages Pvt. Ltd. Jamshedpur, I saw
1. Water treatment plant, where water is purified.
2. Bottle washing plant, where used glass bottles are washed
3. Syrup room, where syrup is prepared from sugar.
4. Bottle filling plant, where bottles are filled with the final product.
5. Acid room, where custic soda is kept, which is used for cleaning the equipments and
pipelines after every batch of production.
6. Yard for keeping empty bottles and ware houses for storing the filled bottles.
The brief introduction of each plants are given bellow.
1. Water treatment plant:
Water in S.M.V. Beverages Pvt. Ltd. Jamshedpur, is coming from the Sitarampur dam on
the Kharkai river. It is stored in a reservoir. This raw water is being treated in the water
treatment plant, before the production process starts. Coagulation process is used here for this
purpose. Main chemicals used are ferrous sulphate (FeSO4), calcium hydroxide (CaOH) and
chlorine (Cl). Initially water is treated with all these chemicals in the treatment tank and
becomes turbid. All the impurities get settled at the base and remove the turbidity. Then, it is
sent to the carbon tank where all the microorganisms and chlorines are removed. The water
so obtained is completely free from any kind of impurities and used in further processing.
The maximum alkalinity maintained until as much as 50 ppm.
2. Bottle washing plant:
Used bottles returning from the market are stealthy. Before filling these empty bottles with
new product, these bottles are passed through the bottle washing plant where these dirty
bottles are washed. It is completely an auto process which takes place within a machine
called washer machine. The machine has three compartments. Bottle for washing are placed
on the conveyer come inside the machine and get successive treatment. Bottles are treated
with 4% caustic soda in the first compartment at a temperature of 100-150˚ C. Next these are
conveyed to the second compartment, where bottles are again washed with hot water at a
temperature of 80-100˚ C, in the third compartment bottles are treated with cold or normal
water at room temperature. Time duration in each compartment is 10 minutes. Bottles are
then sent through the inspection center, where these are closely watched against white rays of
light. Bottles containing any dust or other unwanted things are removed from the line here.
3. Syrup room:
Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a specified
ratio into a closed container. The temperature of this prepared sugar remains between 80-
100˚C. This syrup contains some impurities as, sometimes there are some impurities presents
in sugar, so this syrup is filtered to remove all those contaminations. Before storing in syrup
tanks this syrup it is passed through the cooler where syrup temperature is reduced to 25-
30˚C. This temperature is maintained throughout the whole process. Here next flavors are
added at a specified quantity with the syrup used for preparation of pepsi or other brands.
.Bottle filling plant:
Next, for preparation of carbonated soft drinks brands like pepsi, mirinda, 7UP, and mountain
dew, carbondioxide gas ( CO2) is mixed with this prepared solution. And for the brand like
slice, fruit pulp is added. Now the solution is ready for filling into the bottles. The washed
empty bottles are filled by automatic filler machine. This machine can fill 60 bottles in one
minute. After filling, crowns or caps are fitted on the filled bottles with the help of crowning
machine. Now these filled bottles are ladled and then sent for packing and storing in the
godowns.
4. Acid room:
There are three tanks in this room. The first tank contains caustic soda, the 2nd tank contains
hot water and the third tank contains cold water. After finishing every batch of production
the whole production lines and containers/tanks are washed. And for this purpose, first of all
caustic soda is passed through the pipeline, next hot water and at the last cold water.
5. Yard for keeping empty bottles:
S.M.V. Beverages Pvt. Ltd. Jamshedpur has a large area in side its premises. A large part
of its open area is used for keeping the empty bottles.
7. Warehouse:
S.M.V. Beverages Pvt. Ltd. Jamshedpur has its own warehouse in side its premises for
storing the produced products. The produced products are sent to the customers from these
warehouses. For transferring the filled bottles inside the company fork-lifts are used.
PEPSICO PACKAGING PROCESS
PepsiCo is an industry leader in packaging- helping to promote and implement
standards for sustainable packaging.
PepsiCo distribute the products in a variety of packages, each carefully designed to deliver
convenience and appeal to the consumers while protecting the integrity of the products. The
team of engineers and packaging suppliers are dedicated to finding preferable designs, and
are working continuously towards improving the packaging performance while reducing the
packaging footprint. PepsiCo are committed to bringing the environmental responsibilities to
all areas of the business. PepsiCo are continuously improving the environmental programs
and exploring solutions to environmental challenges through socially responsible,
scientifically based and economically sound methods. Pepsi pass this commitment along to
his suppliers and the consumers in an effort to do our part. The goals are to design and
develop packaging systems that are environmentally responsible throughout their entire life
cycle, inspire consumers who want to live more environmentally sustainable lives by
promoting recycling, and partner with leading organizations to promote sustainable
packaging and recycling practices. Through ongoing engagement with the packaging
suppliers, we are working towards a position where all of our operations use the most
environmentally suitable packaging available in their country of operation.
PepsiCo follow five principles of sustainable packaging design:
Reduce : Using less material in the packaging, to conserve natural resources.
Reuse : Increasing use of reusable packaging and increasing the amount of recycled
material in the packaging.
Recycle : Designing packaging for recycling and developing biodegradable and
compostable packaging solutions.
Remove : Eliminating environmentally sensitive materials and processes from the
packaging.
Renew : Increasing use of renewable resources.
In an effort to meet his goals, PepsiCo have launched a global sustainable packaging policy
and formed a Sustainable Packaging Council dedicated to:
Developing sustainable packaging strategies, goals, and targets
Developing alternative packaging material technologies
Supporting responsible disposal practices
Using Less Material in our Packaging
Although beverage containers are the most recycled consumer packaging in the United States
– and they are designed for recycling, we continue to look for ways to reduce the amount of
packaging used for the products. And we are achieving success. PepsiCo scientists and
packaging specialists have led the way in reducing packaging materials through cost-effective
changes in design and production, known in the industry as "light-weighting." Light-
weighting reduces the amount of raw materials and energy used to make our packages and
generates less waste after the products are enjoyed.
PepsiCo introduced new packaging for half-liter bottles of Lipton iced tea, Tropicana juice
drinks, Aquafina Flavor Splash and Aquafina Alive that contain at least 20 percent less
plastic than the original package. Aquafina has trimmed the amount of plastic used in its most
popular bottle - the half-liter (16.9 oz) bottle - by 35 percent since 2002. This saves more than
50 million pounds of plastic annually. Aquafina's half-liter bottle weight has changed from 15
grams to 13.2 grams putting it among the lightest water bottles on the U.S. market.
Reducing and Recycling the Waste
At Frito-Lay, route sales employees return empty cartons from stores to our plants for reuse
or recycling and delivery boxes are used an average of six to seven times, saving nearly 5
million trees a year and keeps 56 million pounds of cardboard away from landfills. For Frito-
Lay's North American and International products, Frito-Lay recycles packaging film waste
from our suppliers' sites for use in various other products (park benches, boards, etc). Our
Quaker Oats facility in Cupar, Scotland has reduced the amount of corrugate used by 30%
over the past 5 years by moving to cases with open tops and reduced sides. Over the last five
years, PepsiCo U.K. has reduced the amount of plastic used to make Tropicana and Copella
juice bottles by 18 percent. In Mexico, our snack business saves more than 100 million boxes
per year by using every box about seven times between the distribution center and point of
sale. By recycling our boxes up to seven times, we save on average each year about 45,000
trees, 1,800,000 mz of water and 1,620,000 liters of fuel. The Latin America Beverages
business has optimized beverage packaging projects across Mexico, Peru, Columbia, Bolivia,
Brazil, Argentina, Honduras and Guatemala, resulting in the removal of over 800 tons of
packing annually, specifically reducing the need for PET resin for bottles, corrugate boxes,
DIRECROR(SMV BEVERAGE)
Logistic Dept.
Logistic Manager
Staff
Plant Mgmt.
Production
Manger
Supervisors
Staff
Lab
Store
Personal Dept.
PersonalManager
Personal
Officer
Staff
Security
Dept.
Purchase Dept.
Purchase Manager
Supervisors
Staff
Store
PMTMI Scooler Dept.
Equipment
Manager
Finance Dept.
Finance Manager
Account
Executive
Accountant
bottle-top closures and glass. The average Pepsi bottle contains 10% recycled plastic, more
than any other national soft drink brand. Pepsi-Cola's bottles and cans are among the most
recycled packages made – since 1990; more than 150 billion Pepsi containers have been
recycled. Across all our U.S. divisions, initiatives conducted in 2007 to reduce packaging
have resulted in more than 20 million pounds of material reduction across PET bottles,
paperboard and corrugated materials.
ORGANIZATION CHART OF SMV.BEVERAGES
JAMSHEDPUR
DIRECROR(SMV BEVERAGE)
HEAD OF SALES
Finance Department
Finance Manag
er
Account
Executive
Accountant
Shipping Departm
ent
Supervisors
Staff
Marketing Developme
nt Manager
Marketing
Officer
Merchandiser
Territory Development Manger
Account Developme
nt coordinato
r
Sr. Custome
r Executiv
e
Customer
Executive
Salesman
Loaders
PERSONAL DEPARTMENT
ORGANIZATION CHART OF HYDERABAD MARKETING
COMPANY
EVERY DEALER SURVEY (EDS)
The design of competitive marketing strategies begins with competitor analysis. The main
competitor of PepsiCo is Coca-Cola. In market we see three types of outlets where cold
drinks are sold; those are exclusive outlet of PepsiCo, exclusive outlet of Coca – cola and
mixed outlet of PepsiCo and Coca – cola. Every Dealer Survey refers to the survey of all the
three types of outlets of a market segment. In this survey we collect the data of various
promotional and selling tools (case stock, number of glow sign, dealer board, bunting etc, and
number of visicooler) provided by PepsiCo as well as Coca – cola present at the outlets.
Dealer survey is primary method by which on gets first hand information with respect to the
following factors:
Knowledge of market in terms of:
Name and number of dealers
Location of dealers.
Type of dealers.
Market output i.e. case stock, number of glow sign, dealer board, bunting etc, and
number of visicooler.
Distribution Effectiveness:
From the dealer survey we can find out the number of dealers and the stock and the other
details. Non buyers also be located. Activation of non buyers should be done immediately.
With the above knowledge on can increase the number of routes to get increased dealers
coverage and hence also increased more effective sales. Also details of this have help to
check upon the route selling of salesman, so that we can control them by closely monitoring
their performance.
Training group for future executive:
Good investigation from these surveys can be recruited to take up future jobs. These people
will ideally suitable, as they would know the market thoroughly.
They should visit the counter on the daily basis including the remote areas.
Salesman should visit to every outlet on weekly basis.
How to increase distribution effectiveness:
After the above survey, the company can improve the distribution network.
Immediately activeness of non- buyers.
Improve the dealer coverage.
Increase the realignment of routes.
Better control thorough route card.
Availability of goods on time.
Therefore, “Every Dealer Survey” is important keeping in mind that distribution forms the
major marketing activity in our industry and also that through these survey one acquires
knowledge of the market. It should also be added here that continuous dealer surveys are
required because of the following reasons.
As our turn over increase we require skills to tackle problem and dealer survey help in
acquiring first hand as to use the skills effectively.
With our increased growth , investment of money are increased for various marketing
inputs e.g. case stock, advertising, merchandising etc. and by survey we can get an
indication of the areas in which investment should be made to get the maximum
benefits.
Importance of EDS (every dealer survey):
Market Knowledge:
Dealer survey gives the total profile of the market by knowing
Location of dealers.
The type of dealer.
Number of dealer who keep Pepsi and coca cola and comparing the stock and
awareness of brand.
Take the information about distribution process of company.
Take the information to dealer that which brand of product more sell or popular.
Gather the information about scheme which is given by company to dealers.
The marketing inputs with respect to:-
i. Advertising
ii. Visi cooler size
iii. Customer service
Though PepsiCo has entered the market only 15 years ago but it has captured a big market
share and ends the monopoly of coca cola, which has ruled for 13 years. This survey enables
us to know,
How many exclusive outlets of PepsiCo, Coca – cola and how many mixed
outlets of both brands are there in a particular market segment?
What are the promotional kits presents at all of these three types of outlets
provided by PepsiCo and Coca – cola?
What are the gaps? I.e. what are those promotional tools, which can be used to
increase the sale of PepsiCo?
How retailers can be motivated to sale PepsiCo products instead of Coca –
cola?
Apart from these, this survey also provide us the information about the sales every outlets.
And this report is useful for planning or taking decision about how much amount should be
spent for sales promotion for each outlet.
From these aspects we can know how good we are in the market place and those areas where
we are lacking. It also helped to found that in some place or areas where only the competitor
brand available, then by the help of survey we can find out the reason behind non availability
of PepsiCo product in that specific area. The knowledge of case stock will indicate our
“case- in trade” and that of competitors. This will also indicate our “case velocity” which
helps to plan our bottle as well as whether our distribution is effective or not. If our case
stock is low then we may decide upon a “case stocking” campaign. Therefore, appropriate
marketing strategies can be worked out depending upon the findings.
PLAN - O- GRAM
PEPSICO STRATEGY
PepsiCo provides visicoolers (Refrigerators fitted with glass door) to Pepsi outlets, so
that the retailers can provide chilled Pepsi drinks to consumers. This also increases the sale
of Pepsi products. Visi – coolers are of various sizes for instance 165ℓ, 200ℓ, 220ℓ, 300ℓ,
320ℓ, 400ℓ, 440ℓ, 650ℓ, 1200ℓ and so on. Plan – O – Gram is the process of filling of visi –
cooler with the Pepsi, and other Pepsi products i.e. 7UP, Mirinda, Slice, Mountain Dew,
Aquafina, and Tropicana fruit juice according to the sequence prescribed by PepsiCo.
As per the research conducted by PepsiCo, ‘Pepsi’ is the most selling brand followed by
‘7Up’, ‘Mirinda’, ‘Mountain Dew’ and ‘Slice’. And on the basis of this research PepsiCo has
developed a sequence of different brands for filling up the visicooler and also for placing in
to the shelves. Sequence is as under.
Pepsi › 7Up › Mirinda › Mountain Dew › Slice › Aquafina
Pepsi products are available in glass bottles, pet bottles, metal cans and tetra packs. The
number of bottles, cans and packets filled in visi – coolers varies as per the size and capacity
of the visi – cooler. The figure in the next page shows different brands, sequentially filled in
a visi – cooler.
Objectives
To keep the visicooler pure.
People what see, that people buy. I.e. to attract consumers by displaying their favorite
brands or to help the consumers in finding their favorite flavor or brand.
To attract consumers by displaying different brands.
To promote the sale of all flavors or brands.
To motivate the retailers for effective utilization of visicooler for selling Pepsi brands.
To beat the competitors and to lessen the sale of substitute products available in the
market.
Procedure
Visicooler plan – o – gram (P – O – G) includes the following three processes.
I. Visi pure and visi cleaning.
II. Charging.
III. Planogram.
l. Visi pure and visi cleaning:
Sometimes retailers use to keep products like chocolates, ice creams, and other substitute and
competitor’s products like ‘fruity’, ‘jumpin’, ‘horlicks chilled doodh’ , and coco cola
products in the visicooler. These products grabs the places of pepsi, again this increases the
selling of substitute products. Here visi pure means, removing all items except pepsi from
the pepsi – visicooler. And visi cleaning is simply cleaning of visicooler with a duster. Visi
cleaning helps to keep the products clean and also attract the consumers.
ll. Charging:
This process involves the transfer of pepsi from warm stock to cold stock. Or in other words
we can say charging is nothing but filling of visicooler with pepsi products from the stock
available at the outlet. This helps in following ways,
Helps in effective utilization of the visicooler.
Helps in maintaining the stocks of chilled pepsi products every time.
Attract consumers.
Helps in keeping the visicooler pure.
Increases sale of pepsi.
Bottles/cans/tetra packets are first cleaned with a clean duster and dusts are removed and
then filled into the visicooler.
lll. Planogram:
This is a process which involves sequentially placing of bottles/cans/tetra packs of different
flavors or brands in the visicooler. The sequence of different flavors or brands is prescribed
by Pepsico, and it is discussed earlier. Planogram helps in following ways,
Helps the consumers in finding their favorite flavor or brand.
Attracts consumers by displaying different brands.
Promotes in selling all flavors or brands.
Acts as window display in the outlets.
Under mentioned are the few steps for planogram,
Steps for 1st time planogram i.e. in new cooler.
Step 1: Empty the cooler.
Step 2: Clean the cooler.
Step 3: Clean the bottles/cans/tetra packs with a duster.
Step 4: Place the products in lower shelve first.
Step 5: Maintain a gap of 2 Inches between the bottles and the upper shelve.
Step 6: Repeat this process.
Step 7: Charge the products according to the prescribed sequence of P – O - G.
Steps for planogram during 2nd time and onward visits.
Step 1: Check the cooler.
Step 2: Determine the number of bottles of each brand or flavor required to fill the
cooler according to the P – O – G sequence.
Step 3: Clean the bottles/cans/tetra packs with a duster.
Step 4: Place the products in lower shelve first.
Step 5: Maintain a gap of 2 Inches between the bottles and the upper shelve.
Step 6: Repeat this process.
Step 7: Charge the products according to the prescribed sequence of P – O - G.
Step 8: Ensure that cooler is 100% charged.
How retailers are motivated to maintain P – O – G, and visi pure?
Planogram and making the visicooler pure is the job responsibility of ‘merchandiser’. A
merchandiser is a person who visits the outlets on daily basis. He checks the visicooler,
makes it pure and charges the product according to the planogram. But, sometimes retailers
use to keep other products also (non pepsi products) in the visicooler provided by Pepsico
ands they do not show any interest to follow the planogram. So to motivate retailers to
follow planogram, PepsiCo provides attractive incentive/pacages to the retailers.
I did P – o – G for two weeks in two different market areas Parsudih and Telco during my
training period. The P – O – G reports of these two areas are given in the next pages.
Problems, we faced during P – O – G:
1. Unavailability of all flavors at some outlets.
2. Technical problems of visicooler, such as
Cooling problem.
Cooler was not working.
3. Some retailers were not interested for P – O – G.
4. Some outlets use to sale only few flavors or brands of pepsi and not all.
How we solved those problems?
During our training period for P – O – G, we faced above problems. And with the help, guide
and direction of the C.E (Customer Executive) of respective area and our Trainer (Mr.
Dhananjay Kumar) we solved some of those problems.
1. When there was a shortage of any flavor at any outlet, we informed to the respective
distributor to supply that flavor.
2. After getting information from the concerned C.E, technical people solved the
technical problems of visicoolers at outlets.
3. Some retailers were not interested for P – O – G. To motivate them for the same we
explained the benefits of P – O – G and various skims which were available for the
retailers for P – O – G and maintaining visi pure.
‘Pepsi Cool Zone’ is one of such skim, which was available during that period of time
for the retailers.
4. Outlets, where only few flavors or brands of pepsi are sold not all the flavors, we
placed one available flavors in each shelve of the cooler.
e.g. ’Cheer Bar’ restaurants, where only three brands of pepsi are sold.
which are Pepsi, 7Up, and Pepsi – Soda water.
DISTRIBUTION CHANNEL:-
My field of study will look into upon the following aspects viz. market research of
distribution strategy and market share.
The main purpose of trade is to supply goods to the consumers living in far off places. As
goods and services move from producer to consumer they may have to pass through various
individuals. The middlemen are connecting links between producers of goods and consumers.
They perform several functions such as buying, selling, storage, etc. The middlemen
constitute the channels of distribution of goods. Thus, a channel of distribution is the route or
path along which goods move from producers to ultimate consumers.
The route taken by goods as they move from producer to consumer is known as Channel of
Distribution.
From the above diagram it can be found that there is just one direct channel i.e. from
producer to the consumer. There are many indirect channels like:
(1) PRODUCER DISTRIBUTOR RETAILER CONSUMER
(2) PRODUCER CONSUMER
(3) PRODUCER DISTRIBUTOR CONSUMER
The route normally used by FMCG companies especially by the soft drink companies is the
second one i.e. (ii). In this case the wholesaler is usually called ‘distributor’.
If the producer is producing goods on a large scale, it may not be possible for him to sell
goods directly to consumers. As such, he sells goods through middlemen. These middlemen
may be wholesalers or retailers. A wholesaler is a person who buys goods in large quantities
from producers; where as a retailer is one who buys goods from wholesalers and producers
and sells to ultimate consumers as per their requirement. The involvement of various
middlemen in the process of distribution constitute the indirect channel of distribution. Let us
look into some of the important indirect channels of distribution.
DISTRIBUTOR
Distributors are one of the important middlemen in the channel of distribution who deals with
the goods in bulk quantity. They buy goods in bulk from the producers and sell them in
relatively smaller quantities to the retailers. In some cases they also sell goods directly to the
consumers if the quantity to be purchased is more. They usually deal with a limited variety of
items and also in a specific line of product, like iron and steel, textiles, paper, electrical
appliances, etc. Let us know about the characteristics of distributors.
CHARACTERISTICS OF DISTRIBUTORS
The followings are the characteristics of distributors:
(i) Distributors buy goods directly from producers or manufacturers.
(ii) Distributors buy goods in large quantities and sells in relatively smaller quantities.
(iii) They sell different varieties of a particular line of product. For example, a distributor
who deals with soft drinks is expected to keep all varieties of soft drinks viz. 200ml, 300ml,
500ml, pet bottles, mineral water, soda etc.
(iv) They may employ a number of agents or workers for distribution of products.
(v) Distributors need large amount of capital to be invested in his business.
(vi) They generally provide credit facility to retailers.
(vii) He also provides financial assistance to the producers or manufacturers.
FUNCTIONS OF DISTRIBUTORS
Let us now know what the functions of distributors are.
(a) Collection of goods: A distributor collects goods from manufacturers or producers in
Large quantities.
(b) Storage of goods: A distributor collects the goods and stores them safely in warehouses,
till they are sold out. Perishable goods like fruits, vegetables, etc. are stored in cold storage.
(c) Distribution: A distributor sells goods to different retailers. In this way, he also performs
the function of distribution.
(d) Financing: The distributor provides financial support to producers and manufacturers by
sending money in advance to them. He also sells goods to the retailer on credit. Thus, at both
ends the distributor acts as a financier.
(e) Risk taking: The distributor buys finished goods from the producer and keeps them in the
warehouses till they are sold. Therefore, he assumes the risks arising out of changes in
demand, rise in price, spoilage or destruction of goods.
SWOT ANALYSIS
In order to get clear understanding of the position of Diet Pepsi in the various markets we did
a SWOT analysis from the data obtained from the survey and the various retailer interviews
STRENGTHS
PACKAGING AND PRICING :- Pepsi has the advantage of having provided the same kind
of health based carbonated drink the Slim Diet Pepsi Can which in comparison to the Diet
coke is a much more attractive offering because it is slim sleek equally healthy and way
cheaper.
DISTRIBUTION :- As already mentioned Pepsi India has one strongest and most
efficient sales and distribution networks not only in India but also throughout the globe. Also
in the particular market where the survey was done the sales people have developed network
which is powerful enough to make or break sales for Pepsi in any given quarter P R – One of
the most important factors of success of PepsiCo in India is the relationship the company and
its constituents have with the channel partners. The Company officials and even the
employees of FOBO have very good rapport and relations with the Channel partners. Also
the recently introduced retailer benefit schemes such as the gold card membership and other
free gifts and offerings not only motivate the retailers but also helped us create visibility for
the Slim Diet Can range in a profound. The experience of working with people who welcome
us with a smile rather than a frown will always be remembered.
NON-CARBONATED:- This is one those strengths of Pepsi that often goes unnoticed but
plays a very important role in success of Pepsi in India and even around the globe. The non-
carbonated segment is dominated by Pepsi, Tropicana is the market leader in fruit juices. In
the mineral water segment, Aquafina clearly outsells Kinley without any fuss.
Bottling – Pepsi has the advantage of being in partnership with the largest bottler in India, the
R K Jaipuria Group. RKJ Group controls almost 65% of the bottling operations of PepsiCo in
India. At times this is also seen as a weakness of Pepsi in India attributing to the fact that the
Jaipuria group is so strong that in certain circumstances it can even defy the parent Company.
Pepsi – Pepsi Cola is the biggest strength of Pepsi as it is the market leader in the Cola
segment and clearly outsells both the products the Coca Cola Company namely Coke and
Thums Up. Pepsi controls almost 60% market share in the Cola segment.
WEAKNESS :
SECOND MOVER DISADVANTAGE:- Diet Pepsi Cola does have the first mover
advantage which Diet Coke has and this may prove to be a major shortcoming also in the
Agra Market no Extensive efforts have been made to popularize it.
Brand – On a comparative scale Diet Coke proves to have a better brand image in customers
mind than. This compels to incur extra expenditure in Advertising, Promotions and
Sponsorship.
MCDONALDS:- This is one of the most important reason why Diet Coke outsells Pepsi
worldwide and specially in the United States. Similarly, in India Diet Pepsi may suffers in
sales because of institutional sales. Now Pepsi is trying very to bridge this gap in the near
future.
EXPENDITURE:- Right from the very beginning Pepsi has hired the biggest and the most
expensive stars in the country as its brand ambassadors and has spend heavily on advertising
which has affected its balance sheet.
Vizicoolers:- At presently this is one the biggest problems faced by Pepsi. Pepsi is not able to
get refrigerators in India so they have to import it other namely Sri Lanka, Mauritius etc.
Because of this, retailers are facing lot of problems in vigicoolers. They are not able to get
new refrigerators, replacements for old ones, even the repair work takes lot of time because at
times even the spares are not available on time.
OPPORTUNITIES
Lowest Per Capita Consumption:- Even after almost decades of presence in the market, there
are growth opportunities for Diet Pepsi in India as here the per capita consumption of
carbonated beverages is one of the lowest in the world.
Health Based: apart from its Juice Based drinks portfolio Pepsi can Use the Slim Diet can to
the maximum by promoting it as a health drink at Cheaper prices.
THREATS:
NGO’s:- NGO’s like CSE can seriously hamper the sales and prospects of companies
operating in this industry. This happened during the pesticide controversy involving both
coke and Pepsi.
HEALTH:- Growing health awareness among people and some of ill effects of
carbonated beverages have pursued many people to switch over to non-carbonated beverages
that can seriously hamper the long-term prospects of the entire Industry and not Pepsi.
ENVIRONMENT:- Environmental concerns are often raised because of the massive amount
of water extracted by the bottling plants resulting in the drop in groundwater level which
affects the local population adversely. In India PepsiCo adopted the strategy of growth
through intensification. In the intensification strategy, it used market penetration by
developing one of the strongest sales and distribution network in the world and utilizing it to
the fullest.
Pepsi did market development by making the aware of the best products available at their
disposal, by using the best technology to produce the products, by properly communicating
with the customer, and making the customer realize that he is important. Pepsi also explored
new markets by venturing new segments like fruit based beverages, sports drinks, snack food
division.
PART-2
INTRODUCTION
There is a project on market research and, which has been done by me for S.M.V
BREVELAGES. LTD, JAMESHEDPUR (A franchise of Pepsi India Ltd). Customer
satisfaction and the market research has the aim of building mutually satisfied long term
relation with key parties – customer , suppliers, distributors in order to earn and retain their
business.
PURPOSE:
The purpose of the project is to gather information about the true market
position of the soft drink market in the Jamshedpur division. Its main objective is to find out
how strong the relationship between Pepsi co. and the customer is and what are the problems
faced by retailer & customer.
OBJECTIVE OF THE STUDY
To know the distribution strategy adapted by the organization.
To know the response of the dealer regarding the product of PepsiCo.
To find out the market share of Pepsi with respect to coca-cola in terms of WARM
STOCK, CHILLED STOCK AND EMPTHY STOCK.
TO estimate Per day sale of Pepsi brand and its competitors in Jamshedpur
To analyze the problem of retailer and customer
To analyze customer satisfaction of Pepsi as compared to coke
2. Description of the Field
2.1 Introduction
The field of the study is JAMSHEDPUR town of the JHARKHAND. The study was on the
market research on Pepsi customer and also about the retailers. As it is the GREEN CITY of
JHARKHAND, this region is very developing with every scope to boost the living standard
of people. As the situation is convenient for our investigation to study “MARKET
RESEARCH ON PEPSI IN JAMSHEDPUR MARKET”.
As field situation is crucial for the research, we find the field informative for a research with
the available heads.
2.2 DESCRIPTION OF THE FIELD:-
The field of my study covers MANGO areas of the JAMSHEDPUR town for customer data
and I have covered for the retailers in the Jamshedpur town around 6 areas. I have collected
some data from customers like that areas mango 1, mango 2, bistupur, adityapur, persudih,
jugsalai.
1. Kasidih:-
This area is at the near of highway. It is very populated and market area. SO I found all type
of respondents for my study. They gave different opinion which helped me to get different
views and different suggestion from the different types of the people.
2. Aam bagan:-
It is an official colony for TISCO employee & heart of Jamshedpur. So here I found various
govt. job holder respondents and also this area helps me in giving various information
regarding PEPSI and Pepsi’s other soft drinks as it is family oriented area. Also here all type
of respondents were found who gave different opinions on the basis of their economical
status and daily needs.
3. Kalimati:-
It is very industrial area where every type of people comes from their busy life for enjoying
in work. So her there was a chance to get the authentic data regarding the study.
4. Sakchi market:-
It is very populated as well as peaceful area where the people come to get some peace at the very
time. So here is a greater chance to get different types of authentic data from different types of
respondents.
5. Tank road:-
It is market area which is full of every type of people i.e. different age groups different class, etc
3. RESEARCH METHODOLOGY
3.1 INTRODUCTION
Every research needs a systematic or scientific study so that proper authentic data can
be found out.
By systematic it is mean that the study should be best on scientific analysis and
follows a proper and logical methodology.
In order to make our research empirically valid and scientifically relevant a proper
research methodology has been evolved which caters from research design, research
tools, techniques methods, to analysis and proper presentation on data.
In this present study, I have seen in six areas of Jamshedpur town and areas of
retailers in Jamshedpur. A consensus was made regarding the methodology to be
adopted before going to the field which would be intended with the selected topic.
Methods of data Collection:-
There are mainly two types of data:
1- Primary Data
2- Secondary Data
1. Primary Data Collection:-
Primary data can be collected by three methods:
A) Observation
B) Experiment
C) Surveys
But here, only survey method of data collection is proffered which is very suitable to
reach the researchers motto.
Research Instrument: - Printer questionnaire was used as the research instrument
to collect the required information. Separate questionnaires were prepared for
retailer survey and interview was taken by the help of the questionnaire.
i) Area of Survey: - The survey was conducted in the different localities of
Jamshedpur city.
Sampling Plan: - Sampling plan consists of:
a) Sampling Unit: - The retailer of grocery shop, general store, betel shop, medicine
store was selected from different place of Jamshedpur.
b) Sample Size: - for retailer’s survey, 500 retailers were taken as sample size and for
the customer survey I have collected 150 samples fro the customer.
c) Sampling Procedure: - Cluster sampling producer was followed.
d) Sampling Method: - Data were collected by retailers and customer survey. The
retailer and customer are directly conducted and interviewed at their retail counter and
the different areas for the customer.
e) Time Period of Study: - The survey was conducted during 1st may to 30th June
2010.
2. Secondary Data Collection: -
As secondary data were not available with stockiest or with company people, so these were
collected from different books, company journals, company records and other magazines.
3.2 SELECTION OF THE FIELD
I selected areas some different view according the convenience of my study and also to
get convent respondents for my research. The field was consisted of six areas of customer
in the Jamshedpur town i.e. mango 1, mango 2, bistuput, adityapur, persudih, jugsalai and
seven areas for retailers in the Jamshedpur town.
These areas were taken as our field of my study because these areas are populated,
peaceful and also market and family oriented. Here mixed populations were found i.e.
educated, unemployed, all types of age groups etc.
Research Design:-
In this research descriptive, research design was used because it finds out the diagnostic
information by asking the question like:
(a) What is it?
(b) Why is it?
(c) What it will be?
(d) What is should be?
Here it has been tired to analyze and describe about the reason behind the customer
satisfaction in Jamshedpur market and what measures should be applied.
3.3 SELECTION OF SAMPLES:-
When a small group is taken as the representative of the whole, the study is taken as sampling
study. The whole group from which the samples have been drawn is technically known as
universe or population and the group selected for the study is known as sample.
In the present study the universe is the total population if the six selected areas:
(1) Sakchi market (main area of survey)
(2) Kalimati Road
(3) Tank road
(4) Kasidih
(5) Balubhasa
(6) Aam bagan
As the universe is too much large so I decided to take only 150 customers and 400 retailers in
the Jamshedpur market as our size for the convenience of my study.
The sample is very small as compared to the universe which may inconvenient yet it fulfills
the aim of the topic selected to be studied. As sampling method simple random sampling
design was taken. Because the samples or the respondents were selected on the random basis
without any bios.
3.4 DATA COLLECTION (Tool and Techniques used)
Data are of two types i.e. Primary and Secondary. To collect primary data from
different source, along with samples, different tools and techniques will be used.
To collect data from a universe, along with samples, different tools and techniques are
used.
The methods of primary data collection i.e. adopted that that present study are
interview method (structured), questionnaires method (both open and closed ended)
and also the observation method.
Also the secondary data were collected through newspapers, articles, and Internet.
3.5 DATA ANALYSIS (statistical technique)
The Statistical techniques used in the study are:-
Pi-Chart
Bar-Chart
PROBLEM ENCOUNTERED
1. Most of the people and retailers to whom I was trying to convenience, were refusing
to talk to me, because they thought that I had come from some government
organization or I was doing this only to earn money.
2. Female respondents were avoiding to my questions due to their shy nature and also
due to their conservativeness.
3. The responders were not giving the accurate data about income and about his policy
adopted.
4. Now they have the awareness towards the soft drinks they have adopted so it was
difficult for them to tell about looses and benefits of the drinks.
5. Some time the respondents were feeling very irritated while talking with me.
6. Due to illiteracy and low education, some respondents were unable to tell anything
authentically and also they did not have any interest on my topic.
7. At that time one of the major problems was hot season. It was summer time and in
this time I have moving different areas for the data collection and created very big
problem to me.
MARKET REASERCH OF customer satisfaction
INTRODUCTION:-
Satisfaction is a person feeling of pleasure or disappointment resulting from comparing a
products perceived performance( or outcome) in relation to his or her expectation.
As the definition makes clear, satisfaction is a function of perceived performance and
expectations. If the performance falls short of expectation, the customer is dissatisfied. If the
performance matches the expectation, the customer is satisfied. If the performance exceeds
expectation, the customer is highly satisfied or delighted.
Many company are aiming for high satisfaction because who are just satisfied still find it easy
to switch when a better offer comes along. Those who are highly satisfy are much less ready
to switch. High satisfaction or delight creates an emotional bond with the brand, not just a
rational preference. The result is high customer loyalty. Xerox’s senior management believes
that a very satisfied or delighted is worth 10th times as much to the company as a satisfied
customer.
Some of today’s most successful companies are raising expectation and delivering
performance too much. These companies are aiming for total customer satisfaction.
HOW TO RETAIN CUSTOMERS?
As we know that the customer behavior is quite complex itself, so it is not easy to understand
it completely and also make customer loyal towards the firm, but one can minimize those
reasons responsible for brand switch over in some possible extent. Before finding some
possible suggestion to retained a customer, we have to simplify the matrix of relationship one
again. Generally we developed the maintain relationship in which rewards are distributed in
proportion of costs. When our share of rewards is less then what is demanded we are likely to
experience dissatisfaction and exit the relationship, vice-versa.
CUSTOMER VALUE= BENEFITS+PRICE
Benefits = the sources of satisfaction provided by a product
Price= both financial and non financial costs (cost of using)
Source of Benefits= Product, Price, Promotion, Place, People, Process, Physical at a
level sustainable superior to competition.
Developing closer relationship with the customer and turning them into loyal ones, the
firm may consider the following suggestion:
Define clearly the company needs and objective
Define customers clearly with a deep understanding of their needs.
Define explicit priorities for access to customer database based on enterprise benefits
of each customer contact.
Establishing call centers which help in automating the operations off calls generated
between a firm and its customers, to build terms strategic relationships with them.
Personalization transforms a standard product or service into a specialized solution for
an individual.
Use technologies as the rapid growth of the Internet based techniques have provided
techniques where companies establishing one to one customer relationship online.
The same set of customers will not be targeted too frequently, and interested
customers will not be ignored.
The aim of relationship marketing is to create strong, lasting relationship with group of
customers. It is to a firm’s advantage to develop long term relationship with existing
customers because it is easier and less expensive to make an additional sale to an existing
customer than to make a new sale to a new customer.
Customer satisfaction is more than just nice to know – it’s the leading indicator of your
company’s financial success. Unlike traditional market research companies, the Service
Management Group (SMG), is a satisfaction and loyalty research and consulting company
dedicated to employee and customer satisfaction measurement and service improvement for
multi-unit companies in the retail, restaurant and hospitality industries through customer
surveys and employs surveys. Whether you manage 50 or 5000 location, SMG can unearth
the necessary information though customer satisfaction measurement to help elevate service
levels, loyalty and sales figures-at each individual location.
When customer rate their satisfaction with an element of companies need to recognize that
customers vary in how they define good delivery. It could mean early delivery, on time
delivery, order completeness, and so on. Yet if the company had to spell out every element in
details, customers would race a huge questionnaire. The company must also realize that two
customers can report being “Highly Satisfied” for different reasons. One may be easily
satisfied most of the time and the other might be hard to please but was pleased on this
occasion.
4.1 SOURCE OF CUSTOMER SATISFACTIN
Research tells that a customer’s satisfaction comes from four major sources
which are:-
Price of the product
Quality of the product
Approach of the Marketing Personnel
After Sales Services.
So the company should fulfill these aspects so that customers buy their products. Companies
also should have to note that managers and sales people can manipulate their ratings on
customer satisfaction. They can also try to exclude unhappy customers from the survey.
4.2 TOOLS FOR MEASURING CUSTOMER SATISFACTION
The following tools measure customer satisfaction:-
COMPLAINT AND SUGGESTION SYSTEM:-
A customer-centered organization makes it easy for its customers to deliver suggestion and
complains. These information flows provide companies with many good ideas and enable
them to act quickly to resolve the problems.
CUSTOMER SATISFACTION SURVEY:-
Responsive company’s measure customer satisfaction directly by conduction periodic
surveys them questionnaires to make telephone calls to a random sample of customers. They
also solicit buyer’s view on their competitor’s performance. While collection customer
satisfaction data it is also useful to ask additional question to measure repurchase intention,
this will normally e high. It is also useful to measure the likelihood or willingness to
recommend the company and brand to others. A high positive word-of-mouth score indicates
that the company is productive high customer satisfaction.
GHOST SHOPPING:-
Companies can hire persons to pose as potential buyers to report on strong and weak point
experienced in buying the companies and competitors product. The ghost supper can even
certain problem to test whether the company’s sales personnel handle the situation well.
LOST CUSTOMER ANALYSIS:-
Companies should contact customers who have stopped buying or who have! Switched over
to another superior to learn why this happened. Not only is it important to conduct existing
interviewers when customers first stop buying but it is also necessary to monitor the customer
loss rate. If is increasing this clearly indicates that the company is falling to satisfy customer.
If general, customer satisfaction may be defined, as it is a person feeling of pleasure or
disappointment resulting for comparing a producer’s perceived performance or outcome in
relation to his or her expectations.
4.3 IMPORTANCE OF THE CUSTOMER
Customer satisfaction increased the companies business.
It creates an emotional bond with a brand
Customer satisfaction leads to higher profitability.
It helps the future growth of the company substantially.
MARKET RESEARCH
Research the immediate competitive environment of the marketplace, including customers,
competitors, suppliers, distributors and retailers.
MARKETING RESEARCH
Includes all above plus:
Companies and their strategies for product and markets.
The wider environment within which the firm operates. (e.g. political, social, etc)
5. MARKETING ACTIVITES
INTRODUCTION
Marketing needs a framework that begins and ends with the customer. Marketing tools by
themselves do not achieve marketing objectives. There is an intermediate step between the
deployment of marketing tools and the achievement of marketing objectives. A marketing
network consists of the company and its supporting stakeholders (customers, suppliers,
distributors, retailers, ad agencies, and others). The operating principle is simple: build an
effective network of relationships with key stakeholders, and profits will follow.
A set of marketing tools the firm uses to pursue its marketing objectives are called marketing
mix. These tools can be classified into four groups which are called the four Ps of marketing
PRODUCT PLACE
PRICE PROMOTION
However some academicians feel that the four Ps of marketing have become redundant and
needs to be replaced by the four as or the four Cs of marketing.
FOUR as FOUR Cs
Acceptability Customer value
Affordability Customer costs
Accessibility Customer convenience
Awareness Customer communication
MARKETING MIX
TARGET MARKET
Soft drink is a FMCG product which has a wide and scattered market. Thus in order to
succeed companies needs to breakdown their marketing activities into sub-parts to effectively
meet the customer needs.
The entire market in this case is divided into three parts viz.:-
Route market
Home market
At work market
ROUTE MARKET
Outlets coming under this market cater to the needs of those customers who are engaged in
shopping, eating out in restraints, going to and from work, in amusement centers etc. In
simpler words this market is what we call the bazaar.
HOME MARKET
Outlets coming under this market cater to the needs of those customers who buy soft drinks
predominantly for home consumption either by glass bottles or pet bottles. The shops targeted
under this category are those which are located inside residential complex or are located
nearer to the residential areas. These shops predominantly sales pet bottles.
AT WORK MARKET
Outlets coming under this market cater to the needs of those customers who are working in
offices, factories etc. i.e., the outlets targeted are the canteens mainly.
The soft drink being a FMCG has a wider and scattered market. Thus to enable concentrated
effort of marketing activities in different scattered market, for effectively setting the entire
market is broken into the following segments.
Route market” outlet in this market caters to these people who are engaged in shopping,
eating outgoing to and from work, in amusement centers etc.
Home market: outlets in this market cater to people buying predominantly for home
consumption, either by case or loose bottles.
At work market: outlets in this market cater to people working in offices, factories etc. An
attempt is also made to make drinks readily and convexity available all day long while people
are actively working.
MARKETING MIX OF 7 PS:-
These are the tools of marketing management employed by marketers. They are areas
where marketing managers need to make decision. These decisions affect the nature
of the offering or package of benefits that the organization offers to customers.
The tools are commonly known as the 4P’s or 7P’s.
The term “mix” is used to explain the point that at any one time the marketer will
select a set of tools from the marketing toolbox or the marketing mix in specific
proportions to solve specific problems- in the same way one selectors spanners and
other tools for a specific job OR ingredients to bake particular type of cake.
The Marketing Mix will be tailored to offer value to customer to communicate the
offer and to make it accessible and convenient.
Adjust to the cultural constraints of the environment that can effectively achieve
corporate objective and goals.
Which elements of the marketing mix can be standardized and where is
standardization not culturally possible?
Which cultural/environmental adaptations are necessary for successful acceptance of
the marketing mix?
Will adaptation costs allow profitable market entry?
A logical sequence and a series of activities leading to the setting of marketing
objective and the formulation of plans for achieving them.
MANAGING MARKETING MIX:-
Involves the use of tolls and techniques:
To find out what the customers want, for the matching process
o Marketing Research / Marketing information
Develop products/ services to satisfy those wants
o Product Management
Charge for the product/service
o Pricing
Get the product/service into the customer hands giving a time and a place utility given
distribution and customer service
o Channel and Physical Distribution
Tell the customer about the product/services. Communication
TACTICAL DECISION:-
How we are going to get there;
Covers the detail action to be taken, and by whom, during a short term planning
period, usually for one years or less;
Relatively easy for one years or less;
Allow combination of attractiveness
SOSTT and 4Ms structure for planning gives a useful checklist for ensuring that elements
of strategy and tactics are bought together effectively.
Situation – current position of the firm in terms of its resources, product range, and
market.
Objectives- What the company hopes to achieve n both the long and the short term.
Strategy- Decision about the correctness of the objective and their overall fit.
Tactics- How the strategic objective will be achieved.
Targets- Formalized objectives, target market and segments of the markets. Decision
about the appropriateness of these markets in the light of the firm’s strategic
objective.
TACTICAL CONSIDERATION OF 4 M:-
Men- Decision about human resources, having the right people to do the job.
Money- Correct budgeting and allocation pf financial resources where they will do the
most to achieve the overall objective.
Minutes- Time scales deadlines. And overall planning to ensure that everything
happens at the right time.
Measurement- Monitoring and evaluation of activities to ensure that they remain on
course and works as they should.
COMBINING MIX:-
The marketing manager has to identify the needs of his or her target market through
marketing research and other investigative techniques. The manager must understand
customer’s characteristics and buying habits, for example, He/she then has to blend the
components of the mix to formulate strategic and tactics by which those needs can be met.
This is the essence of marketing identifying, anticipation, and satisfying customer needs in
the most profitable way possible: delivering profits to the value to customers at the same
time.
MARKETING MIX OF PEPSI (THE 7 PS)
A. PRODUCT:-
Pepsi is a soft drink and which is prepared with the help of carbonate, sugar and water.
During the process manufacturing first it sterilized, then it is packed. But its other product are
preparing by some fruit and other carbonate mix water etc.
PACKING:-
The packet of Pepsi is different types like 200ml. to 2lt. it is only on Pepsi product and other
product are same but only Slice soft drinks is slightly different of the other produce. It
packaging size is like 250ml, 500ml, and 1.2lt sizes this types.
SERVICES:-
Any kind of damage, spoiled or expired are return back if necessary.
Advertising
Sales Promotion
Direct Marketing
PersonalSelling
Public Relation
B. PROCE:-
Pepsi products are 6 types and its name is Pepsi, Marinda, Mountain Dew, Slice, 7 up and
Aquafina. All these product are different types of size and different packaging. If we will see
its price of product are same except only Slice and Aquafina.
LITRE:- 200m.l 250 m.l 300m.l cane ½ lt 600 1lt 1.2lt 1.5lt 2lt
Rs:- 7.00 9.00 9.00 20 20 20 12 45 43 50
C. PROMOTION:-
Promotion a key ingredient in marketing campaigns consists of a collection of
incentive tools, mostly short term, designed to stimulate quicker or greater purchase
of particular products or services by customers.
Promotional activities play a key role in the entire marketing effort being carried out by
S.M.V. Beverages which are in sync with those of PepsiCo India. These promotional
activities generate more sales as well as create a good image of the product in the mind of the
customer.
The promotional tools used by SMV Beverages for its marketing activities are
Point of sale display
Incentives to retailers
Sales promotion through sponsoring special events
Sales promotion through various schemes
Advertising
If we will say about the promotion is like that communication and it depends on the
advertisement, personal selling, public relation, direct marketing, and sales promotion.
1. Sales Promotion:-
Sales promotion is done by company by different schemes to the distributor, retailers and
customer.
For example: buy one case, get 2 or 3 PEPSI, some new prizes, etc
2 Advertisement:-
A very important part of advertising is to decide the medium of advertising and how much to
spend on each medium. The different mediums used by Pepsi are:
TV
Hoarding
Newspaper/Magazines
Out of these Pepsi invests heavily in advertising through TV. Brand ambassadors of Pepsi
include film stars, cricketers and other sport persons. PepsiCo gives these brand ambassadors
hefty sums running into many crores to endorse their brands. Some of the brand ambassadors
of PepsiCo associated with the different brands are:
Ranvir Kapoor – Pepsi
M.S.Dhoni – Pepsi
Kaitrina Kaif – Slice
Asin – Mirinda
Mallika Sherawat – 7up
However in the previous year it has been seen that hefty advertising budgets and costly brand
ambassadors have not been able to pep up the sales of the soft drinks. This has been attributed
to the increase in price and also because of consumer shift towards non-carbonated
beverages.
One thing has to be kept in the mind that nothing drives sales more than a good advertising.
But the present scenario tells us that in order to drive up sales, apart from advertising other
factors like distribution network, attractive and competitive pricing policy, good service and
goodwill plays a major role in the success of an advertisement. Thus advertising has to be
very carefully woven along with the others parts of the marketing mix.
Thus advertising is a fascinating and important aspect of marketing. Advertising appeals to
all irrespective of age, caste, sex, borders etc. Words which can be associated with
advertising are fun, humor, warm, entertaining, persuasive, boring, and irritating. Advertising
in simpler words is communication and persuasive and leaves a mark in the mind of the
consumer. Thus it is natural to look to theories, concepts and research findings from
psychology to understand and mange the whole process. In all the phases of the advertising
process from objective setting through campaign creation and media selection to the copy of
campaign evaluation research provides the thrust.
Countering substitution Advertising reinforces the decision of the existing customers and
reduces the likelihood that they will switch over to the alternative brands.
However one thing has to be kept in mind that there is a very thin line separating advertising
from sales promotion. Earlier advertising was given more importance than sale promotion as
a tool to drive up sales. Promotion is now more accepted as an effective sales tool. But there
are disadvantages of letting advertising take too much of a back seat to promotions, because
advertising typically builds brand loyalty while sales promotion helps in spurring up the sales
in that particular period only.
MARKET AND CONSUMER BEHAVIOR
ADVERTISER
MISSION
What are the advertising objectives?
MONEY
How much can be spent?
MESSAGE
What message should be sent?
MEDIA
What media should be used?
MEASUR-EMENT
How should the results be evaluated?
MAJOR INSTITUTIONS INVOLVED IN THE ADVERTISNG PROCESS
CONTROL INSTITUTIONS FACILITATING INSTITUTUION
“THE FIVE Ms” OF ADVERTISING
A very important part of advertising is to decode the medium of advertising and how much to
spend on each time.
For advertisement is takes help of print media, electric media, pop materials etc.
GOVERNMENT
COMPETITION
ADVERTISING AGENCIES
MEDIA
ADVERTISING AGENCIES
For example:-
The Pepsi product is different types and scheme offers is deferent types. The Pepsi, Pepsi
Gold advertisement is scheduled in different types; Company is providing its scheme offer is
different types. In the summer times (March to July) and the other one is August to October.
1. There are more then 50 channels we have seen advertisement program of Pepsi and
other products of the soft drinks on the T.V and other areas. So that whichever
channels we are watching, Pepsi was always present.
2. It covers almost all channels and important programmers of these channels.
3. Posters, stickers, leaflets are given in different languages to make understand different
people.
1. PUBLIC RELATINS:-
In spite of all these things, Pepsi also launch special gift packages with corresponding design
introduced for the occasion both Pepsi and other products at many locations across the
country.
2. DIRECT MARKETING:-
Direct marketing is dome with the helps of sales personnel, who takes order from the house
and deliver the stocks.
3. SALES FORCE:-
Under each distribution, sales personnel are appointed who looks over the sales of Pepsi and
problems regarding the sales.
D. PLEACE:-
In India there are different types of franchise are having in the country. One is having in the 8
m.v beverages Pvt. Ltd. Adityapur Jamshedpur Jharkhand. This franchise of Pepsi co. is
distributing in side of the Orissa, Jharkhand, Bihar in different areas.
E. PEOPLE:-
The attitudes of staff
Training of staff
Internal relations
The observable behavior of staff
The level of service-mindedness in the organization
The consistency of appearance of staff
The accessibility of people
Customer- customer contacts
F. PROCESS:-
The manner in which the service is delivered
Degree of customer contact
Quality control standards
Quality assurance
Payment of method (degree of convenience)
Queuing system for customers
Waiting times
G. PHYSICAL:-
The “environment” or atmosphere in which the service is delivered
Buildings
Furnishings/decor
Layout
Goods associated with the services e.g. carrier bags, tickets, brochures
All the above can help shape customer’s perceptions of the service
ANALYSIS PART
ANALYSIS PART OF THE MARKET RESEARCH
I have collected 150 samples from customer and in my sample male are73% and female are 27%.
AGE GROUP OF THE CUSTOMERS
15-25 26-35 36-45 46-55 56-650
10
20
30
40
50
60
70
46
66
27
7 4
In my above data we can know that mostly 26-35 age group people are drink more soft drink in
jamshedpur.
OCCUPTION OF THE CUSTOMER
SERVICE BUSINESS STUDENT HOUSE WIFE OTHERS0
10
20
30
40
50
60
53
33
46
137
73%
27%
Male and Female
malefemale
In my survey found that customer are from different profession. Most of the customers are serviceman and
businessman. If we compare to that student with business people about the soft drink, so more student are
drinking soft drink.
CONSUME OF SOFT DRI
DAILY 2-3 TIMES A WEEK ONCE A WEEK ONCE A MONTH0
10
20
30
40
50
60
70
28
64
38
20
In my survey ,I have taken 150 as sample data, most of the people are drinking soft drink2-3 times a week.
CRITERIA OF SELECTING SOFT DRINKS
AVAILABILITY PROMOTIONAL BRAND QUALITY TASTE ANY OTHER0
5
10
15
20
25
30
35
40
45
50
1217
3741
48
9
PRIORITY
In my sample collected that most of the choose the soft drink on the basis of taste.
QUANTITY OF THE SOFT DRINK
200 M.L 250 M.L 300 M.L 500 M.L 1.2 LT 1.5 LT 2 LT0
5
10
15
20
25
30
35
40
45
2629
45
95
30
23
Above the figure we can know that most of the people are drinking more RGB then PET. If
we will see that most of the customer are drinking 300 ml bottle.
FROM WHICH PLACE CONSUMER BUY SOFT DRINK
HOTEL GROCERY GEN. STORE PAN SHOP
26
40
69
30
In my survey I found that the most customer buy the soft drink from GEN. STORE .
BRAND IMAGE
VERY IMP. IMP. AVERGE NOT IMP0
10
20
30
40
50
60
70
80
24
78
2818
In my survey I found that brand image of any product is important according to the people
view.
TASTE
From my survey I know that maximum customer told that taste Pepsi is average.
Very poor Average Not important Very good0
10
20
30
40
50
60
70
Column1
Column1
CONVENIENCE
VERY POOR AVERAGE NOT IMP. VERY GOOD0
10
20
30
40
50
60
70
20
66
55
9
From my survey I know that maximum customer told that convenience of Pepsi is average.
ADVERTISING
T.V News paper Magazine Poster/ Hoarding0
10
20
30
40
50
60
70
80
90
100
88
2634
43
ADERVERTISING
ADERVERTISING
From my 150 data I know that most customers are influence from the advertising through
television.
COMMERCIAL ADD OF PEPSI
YEH DIL MANGE MORE NOTHING OFFICIAL ABOUT IT
YE HAI YOUNGISTAN MERI JAAN
0
10
20
30
40
50
60
70
63
3750
In my collection I found that most of the people are influence by the slogan it comes in year
1996
ANALYSIS PART OF THE PEPSI PRODUCTS IN JAMSHEDPUR
MARKET
44%
13%
23%
20%
TOTAL NO. OF OUTLET
SAKCHIKASIDIHKALIMATI ROADREFUGEE COLONY
I collected 100 samples from the four area of the Jamshedpur market. And I found that out of 100 PCI,
CCX, and mix outlet 28%, 22%, & 50% respectively. It means Jamshedpur market the mix outlet are more
than the PCI and CCX outlets.
.
26%
23%14%
28%
9%
Sales
PEPSIMIRINDA7 UPSLICEMOUNTAIN DEW
In the pepsi product they are 5 product in which Slice is the most selling product.
Sales
THUMPS UPSPRITEMAZZAFANTALIMCACOCA-COLA
In the CCX product line they are six products in which thumps up is the most selling product.
RANKING OF THE SOFT DRINK
PEPSI
THUMPS U
P7 UP
MIRINDASLI
CESP
RITE
MAZZA
MOUNTAIN DEW
COCA-COLALIM
CAFA
NTA0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
1563
4973
3185
2250 2235
4333
2304
436 357 448
1851
In the PCI & CCX products they are in which thumps up is the selling product and coca-cola is the least
selling product.
40%
60%
RGB IN PER DAY SALES
PEPSICOKE
From the above figure I got that in the jameshedpur market total selling of RGB regular glass
bottle CCX is 60% & PCI is 40%.
38%
62%
PET PER DAY SALES
PEPSICOKE
From the above figure I got tat in the Jamshedpur market selling of RBG of CCX is greater
than PCI on daily basis
44%
56%
SUPPLY OF THE PRODUCT
PEPSICOKE
In my survey I found that CCX supply is much better than PCI.
65%
3%3%
23%
7%1%
REASON FOR CHOOSING STOCK
CONSUMER DEMAND MORELARGER LIFE PERIODCREDIT FACILITY AVAILABLEDISCOUNT/SCHEMESHIGH MARGINADVERTISEMENT
62%
38%
RETAILER PREFERENCE IN THE JSR MARKET
COKEPEPSI
In my survey I got the result that retailer are prefer to CCX.
SALES VOLUME OF CANE
WARM COLD PER DAY SALE0
50
100
150
200
250
300
350
PEPSICOKE
From the above I got that warm, cold stock and also per day sale of cane of CCX is more than
PCI.
80%
20%
SALES TAKES PLACE AS PER THE RATIO
CONSUMER ASK FOR A PARTIC-ULAR BRANDYOU GIVE A BRAND OF YOUR OWN CHOICE
From my sample I found that the ratio of cosumer ask particular brand is more than retailer
give a brand of his/her own choice. The ratio is 8:2
35%
21%
44%
SCHEMES PROVIDE BY COMPANY
PEPSICOKENO SCHEMES
In my survey I found that the maximum retailer are not getting scheme. PCI provide 35%
scheme while CCX provide only 21%.
43%
57%
TIE UP
PEPSICOKE
From the above figure I found that more retailer are tie up with CCX.
SAKCHI KASIDIH KALIMATI ROAD REFUGEE COLONY0
2
4
6
8
10
12
14
16
PEPSICOKEICE BOXOWN
24%
36%
40%
DISPLAY/RACK
PEPSICOKEOWN
Above the figure I know that maximum number of retailer are using own rack in Jamshedpur.
Findings
Coca Cola is market leader and Pepsi is the market challenger in the whole
Jamsedhpur market.
From the coca cola product thumps up and pepsi products slice is the highest selling
product in the Jamsedhpur market.
Coca cola is the market leader in overall Jamsedhpur market but in Sakchi and
Kasidih the selling of Pepsi is more than Coke.
In the case of refugee colony market and Kalimati road market the selling of Pet
bottle is more than RGB.
In Sakchi market, Kasidih, Kalimati road and refugee colony market supply of Pepsi
is not better than Coke.
In the case of mineral water under brand name Aquafina, is selling more than Kinley.
I have found that the retailers are giving more preference to the Coca Cola products.
In the case of scheme Pepsi is providing better schemes than Coca Cola.
The numbers of Pepsi outlets is more than the numbers of competitor’s outlets at
Jamshedpur that results in increase in sale of PEPSI products.
In the city like Jamshedpur, Pepsi products are reaching to every corner (remote area)
where not a single bottle of Coca-cola can be seen.
Most of the dealers want glow sign and chilling equipments, which they are asking
from long time.
In cola segment Thumps-Up is the main competitor of PEPSI, In orange segment
Fanta is the main competitor of MIRINDA, In lime segment Sprite is the main
competitor of 7UP & MOUNTAIN DEW, In mango segment Maaza is the main
competitor of SLICE.
Most of the consumer doesn’t like the taste of PEPSI due to its Sweetness and low
fizz.
Dealers who sale pepsi products of more than 50,000 every year are asking for the
special incentives.
Some dealers & retailers stops selling Pepsi products because they are not satisfied
with the company, where Coca-cola fulfill some of their demand(such as visi-cooler,
sing boards etc.) and got the opportunity to make exclusive counter for the soft drinks.
The advertisement of Thumps-Up is blocking the mind of the customer that PEPSI is
a sweet and it’s a baby drink and so they like Thumps-Up.
Cost of each bottle of Aquafina is too high as compare to the competitors.So most of
the dealers prefer to sale other brands of competitors with the objective of having
higher profit margin.
SUGESSTION:
We give the following suggestion that can be implemented to increase the customer
satisfaction and the profitability of the company.
Supply distribution should improve during summer.
The sales should be trained and to be courteous with the retailer.
It should depend the partnership arrangement with suppliers and distributors
and make them feel as a part of the company.
Pepsi fridge and racks should be make easily available for the retailers so that
they survey the purpose of visibility as they say – “JO DIKHEGA
WOHI BIKEGA”.
More emphasis should be given in retaining and building loyalty among
retailers while at the same time new retailers should be encouraged to sell
Pepsi.
Another brand of Cola flavour should be introduced and it should have strong
taste and more fizz so as to attract the customers who like Thumps up more
than Pepsi.
Supply should be in time.
Merchandising facility should be fulfill like board.
The company should concentrate on the brand awareness of its product.
Pepsi should come out with such an advertisement, which can block the
customers mind and can change the customer’s perception about the product.
Pepsi is a sweet and low fizz soft drink that everybody knows and so lots of
people do not like so to catch the customers Pepsi should come out with more
fizz.
More improvement is required in the distribution network in the outskirt and
in the remote areas, because in the peak seasons like summer the small dealers
are taking goods twice or thrice and in between if the distributors could not
supply them, the competitors will get the opportunities to supply the goods.
Few areas in jamshedpur such as Golmuri,Sakchi,Kadma etc. company should
take special care of their dealers as because they are highly dissatisfied with
the companies behaviour.they have a lot of complains towards the company.
Salesman should have good interaction with the dealers, which result
Company in increase in sales.
In most of the areas executives are not getting properly interacted with
retailers and as a result most of the distributors hide the schemes issued by the
company from them which may affect the sale volume.So company executives
should visit the counter on weekly basis.
The entire Pepsi product should be display at one place so that the customers
can aware about the different brand of Pepsi.
Company must provide sufficient amount of chilling equipments,sing board
and display racks in the market in order to satisfy the daealers.
Regular visit of technician is required to solve the problems of visicooler in
the market at the right time.
Coca cola is putting much efforts to capture the market share of cold drinks by
fulfilling most of the demands of dealers.So company must take care of these.
LIMITATION
Most of the dealers want glow sign and chilling equipments, which they are asking
from long time.
In cola segment Thumps-Up is the main competitor of PEPSI, In orange segment
Fanta is the main competitor of MIRINDA, In lime segment Sprite is the main
competitor of 7UP & MOUNTAIN DEW, In mango segment Maaza is the main
competitor of SLICE.
Most of the consumer doesn’t like the taste of PEPSI due to its Sweetness and low
fizz.
Dealers who sale pepsi products of more than 50,000 every year are asking for the
special incentives.
Some dealers & retailers stops selling Pepsi products because they are not satisfied
with the company, where Coca-cola fulfill some of their demand(such as visi-cooler,
sing boards etc.) and got the opportunity to make exclusive counter for the soft drinks.
The advertisement of Thumps-Up is blocking the mind of the customer that PEPSI is
a sweet and it’s a baby drink and so they like Thumps-Up.
Cost of each bottle of Aquafina is too high as compare to the competitors.So most of
the dealers prefer to sale other brands of competitors with the objective of having
higher profit margin.
Some of the retailer were not ready to be interviewed due to lack of time and some are
not interested in getting interviewed in fear of disclosing their privacy.
2:-Sometimes retailer were not able to recall the fact which were asked the question.
3:-Scorching heat in the Jamshedpur city came as a barrier while doing the project.
4:-Often retailers are reluctant to provide information related to my project.
CONCLUSION
Everything in this world is made to utilize properly but should be reach at the proper person
or to the proper utilize areas. Otherwise the value added to those things become in vein. As
there is a proverb that ,“Far from Eye ,far from Heart”.
Thus marketing role play a very important role in achieving the objectives of a company.
Undoubtly , value utility is created by the manufacture of product or service but time and
place utilities are created by marketing role. According to Drucker, “ both the market and the
distribution channels are often more crucial than the product”. They are primary and the
product is secondary. In an economy like that of India, where marginal shortages can lead to
disproportation distortion in prices, a dependable and efficient distribution system is very
much essential. The distribution system creates a value added to all most all products.
All from the above study not withstanding its restructuring efforts, Pepsi steel had some
distance to cover to catch up with Coke.
BIBLIOGRAPHY
www.Pepsiindia.com
www.Pepsizone.com
Philipcotler
Magazine
Annexes
QUESTIONNAIRE FOR RETAILERS:-
Name of the shop :-
Address of the shop :-
Contact No. of the shop:-
Which Type of outlets?
(a) General store (b) Grocery
(c) Betel shop (d) Eatery
Q1 How much of the business you do, from PEPSI?
a) 0-10%........................
b) 11-25%......................
c) 26-50%......................
d) 51-75%......................
e) 76-90%......................
f) 91-100%....................
Q2 How frequently do you buy PEPSI?
a) Daily……………….
b) Alternate day’s..........
c) 2-3 times a week.......
d) Once a week..............
e) Less frequently.........
Q3 Which is your favourite C.S.D.?
a) PEPSI........................
b) 7UP...........................
c) MIRINDA (O)..........
d) DEW.........................
e) SLICE.......................
f) NIMBOOZ……….
g) Other (PLEASE WRITE IN)_______
Q4 How many of each of the following brands of C.S.D. do you own?
PEPSI.............................. ____
7UP.................................. ____
MERINDA (O)................ ____
DEW................................ ____
SLICE.............................. ____
Q5 How satisfied are you with the VISI COOLER of PEPSI?
a) Very satisfied..............
b) Quite satisfied.............
c) Neither satisfied nor dissatisfied..
d) Quite dissatisfied.........
e) Very dissatisfied..........
Q6 How satisfied are you with the CREDIT FACILITIES of PEPSI?
a) Very satisfied............
b) Quite satisfied...........
c) Neither satisfied nor dissatisfied..
d) Quite dissatisfied......
e) Very dissatisfied.......
Q7 How satisfied are you with the SCHEMES of PEPSI?
a) Very satisfied............
b) Quite satisfied...........
c) Neither satisfied nor dissatisfied..
d) Quite dissatisfied......
e) Very dissatisfied.......
Q8 How satisfied are you with the DASH BOARD of PEPSI?
a) Very satisfied............
b) Quite satisfied...........
c) Neither satisfied nor dissatisfied..
d) Quite dissatisfied......
e) Very dissatisfied.......
Q9 How satisfied is you with the GLOW SIGN BOARD of PEPSI?
a) Very satisfied............
b) Quite satisfied...........
c) Neither satisfied nor dissatisfied…
d) Quite dissatisfied......
e) Very dissatisfied.......
Q.10 How would you rate COKE compared to PEPSI on VISI COOLER?
a) COKE is a lot better……..
b) COKE is a little better……
c) They are about the same…
d) PEPSI is a little better….
e) PEPSI is a lot better…..
Q11 How would you rate COKE compared to PEPSI on CREDIT FACILITIES?
a) COKE is a lot better…….
b) COKE is a little better…..
c) They are about the same….
d) PEPSI is a little better…….
e) PEPSI is a lot better…..
Q12 How would you rate COKE compared to PEPSI on SCHEMES?
a) COKE is a lot better….
b) COKE is a little better…
c) They are about the same...
d) PEPSI is a little better….
e) PEPSI is a lot better….
Q13. How would you rate COKE compared to PEPSI on DASH BOARD?
a) COKE is a lot better……
b) COKE is a little better…
c) They are about the same..
d) PEPSI is a little better…..
e) PEPSI is a lot better….
Q14. How would you rate COKE compared to PEPSI on GLOW SIGN BOARD?
a) COKE is a lot better……..
b) COKE is a little better….
c) They are about the same…
d) PEPSI is a little better……
e) PEPSI is a lot better……
Q15. Do you think that aggressive advertising further increase the sales volume of
Pepsi?
a) Yes b) No
Q16. Which advertising media do you think affects the sales most?
a) Television……
b) Display………
c) Magazines/Newspapers……
d) Wall paintings/Hoardings…
Q17. What kind of promotional activities affect sale mostly?
a) Free bottle scheme …….
b) Discount Crates………..
c) Prize……………………
d ) Other…………………...
Q18. Product Quality
a) More than 1 in 10 products received have faults….
b) 1 in 50 products received have faults……
c) 1 in 100 products received have faults…..
d) 1 in 1000 products received have faults…..
e) Never receive faulty products…….
Q19. Delivery on Promises?
a) Deliver on 5 out of 10 of promises made or less……
b) Deliver on 7 out of 10 promises made......
c) Deliver on 8 out of 10 promises made….
d) Deliver on 9 out of 10 promises made….
e) Always deliver on promises……………..
Q20. Do any Support material provided by PEPSI?
a) Provide no support materials or assistance….
b) Provide a few low quality support materials and assistance…
c) Provide good quality support materials to help my business..
Any Recommendation for the Pepsi Company.
__________________________________________________________________________________
__________________________________________________________________________________
QUESTIONNAIRE FOR DISTRIBUTION CHANNEL:- Date:-
Name of the shop :-
Address of the shop :-
Contact No. of the shop:-
Q.1 Are you happy with the distribution of PEPSI?
a) Yes b) No
Q.2 The PEPSI route vehicle comes to you first or COKE comes first?
a) Pepsi c) Coke
Q.3 Do you get every S.K.U.s pack wise on demand?
b) Yes b) No
Q.4 How many calls you want per day/week?
a)More than 5 b) Less than 5
Q.5 Do you get the product on emergency phone call?
a) Yes b) No
Q.6 Are they offer you company schemes properly or not?
a) Yes b) No
Q.7 what is your opinion about our present distributor?
a) very satisfied
b) quite satisfied
c) neither satisfied nor dissatisfied
d) quite dissatisfied
e) very dissatisfied
Q.8 what are your suggestions to improve the distribution:-
The distributor
The salesman
The company
