my final report -pepsi.pdf

PepsiCoDECLARATION

I do hear by declare that this project report A market survey on Sale A market Products [Pepsi, promotion of PEPSICO INDIA Products [Pepsi, 7up,Mirinda, slice, Mountain Dew, My Can, Aquafina] in Cuttack is of my own work. It has been submitted fully or partly to KIIT SCHOOL OFMA AGEME T for awarding project marks or any other.

Place: Date: Signature

KIIT SCHOOL OF MANAGEMENT

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ACK OWLEDGEME TI express my appreciation and thanks to all those with whom I have had the opportunity to work with and whose thoughts & insights have helped me in furthering my knowledge and understanding of the subject. Every page of this report reminds me about the moral support and guidance that was bestowed upon me by my esteemed Guide, professors, friends and family members throughout the duration of the project.

My sincere gratitude goes to my Project guide Mr. Sanjay kumar Gupta, HEAD OF SALES OF TRIPTY DRI KS PVT. LTD without his valued guidance, encouragement, and inspiration the completion of this project would have never been possible. I am also indebted to Mr.Ashwini Das, TERRITORY DEVELOPMENT MANAGER, Tripty Drinks pvt ltd

(PEPSICO) for giving me all the valuable information needed and Mr. Manoj , for facilitating me during my project. I would also like to express my thanks to my project guide Prof. Sashi Bhusan Mishra of KIIT School of Management for guiding me throughout the project.


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CO TE TS1. EXECUTIVE SUMMARY 2. I TRODUCTIO ABOUT SOFT DRI K I DUSTRY 3. COMPA Y PROFILE 4. PROMOTIO S TECH IQEUS 5. SWOT A ALYSIS 6. LIVE PROJECT WORK 7. OBJECTIVES, SCOPE A D LIMITATIO S 8. DATA A ALYSIS 9. FI DI GS A D SUGGESTIO S 10. CO CLUSIO 11. BIBLIOGRAPHY 12. A EXURE


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EXECUTIVE SUMMARYSales promotion is one of the five aspects of promotional mix. (The other four parts of the promotional mix are advertising, personal selling, direct marketing and publicity/public relations.) Media and non-media Marketing communication is employed for a pre-determined limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Under the crown. Refilling. Point of Purchase displays Rebates Sales promotions can be directed at the customer, sales staff, or distribution channel member (such as retailers). Businesses can target sales promotions at three different audiences: consumers, resellers and the companys own sales force. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another. It is particularly effective in spurring product trial and unplanned purchases. Most marketers believe that a given product or service has an established perceived price or value, and they use sales promotion to change this price-value relationship by use sales promotion change this price-value relationship by increasing the value and /or lowering the Price. Compared to the other components of the marketing mix( advertising, publicity, and personal selling), sales promotion usually operates on a shorter time line, uses a more rational appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to profitability. Activities, materials, devices, and techniques used to supplement the advertising and marketing efforts and help coordinate the advertising with the personal selling effort. Sweepstakes are among the bestknown sales promotion tools, but other examples include special displays, coupons, promotional discount, contests, and gift offers.


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PepsiCoMy subject of study is that how the company promotional schemes stimulates the products demand and how the retailers response over scheme, what nature of the outlets(i.e. seasonal & non-seasonal), how they know about promotional scheme (i.e. through SMS, salesman, CE etc), whether the outlets prefer to sell RGB [Regular glass bottle], PET [plastic bottle], MY CAN, Aquafina mineral water.


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I TRODUCTIOABOUT SOFT DRI K I DUSTRYNon-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and noncarbonated drinks. Cola, lemon and oranges are carbonated drinks while mango flavor comes under non-carbonated category. The soft drinks market till early 1990s was in the hands of domestic players like Campa, Thumps Up, Lima etc, but on the opening of economy and coming of MNC players, Pepsi and Coca Cola, the market has come totally under their control. While world wide Coca Cola is the leader in carbonated drinks market in India, it is Pepsi which scores over Coca Cola, but this difference is fast decreasing (courtesy huge adspending by both the players). Pepsi entered Indian market in 1991, Coke reentered (after they were thrown out in 1977 by the Central Government) in 1993. Pepsi has been targeting its product towards youth and it has struck right chord with the market and the sales have been doing well by sticking to this youth bandwagon. Coke on the other hand struggled initially in establishing itself in the market in a span of 7 years of its operation in the country. It changed its CEO four times, but finally they seem to have started understanding the pulsar of Indian market. Soft drinks are available in glass bottles, aluminum cans and pet bottles for home consumption. Fountains also dispense them in disposable containers.


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DIFFERE CE BETWEE GE ERAL FMCG COMPA Y A D SOFT DRI KS COMPA Y:Though soft drinks are FMCG companies, but still there is difference between Soft Drinks Company and other FMCG companies. So let us first discuss what the differences between these two are:

DIFFERE CE:The soft drinks company business is a two way business. It means there exists a backward channel also. For example:- The bottles that are supplied to the distributors, are to be returned. But in case of other FMCG company, it is one way business. The soft drinks have to be sold with chilling facility. Without chilling one cant sale the drinks. The product chills by the help of refrigerator or icebox etc. The soft drinks can be sold everywhere means in every shop. For example:- The soft drinks can be sold in a jewelers shop whereas cant sell the toothpaste or soaps (other FMCG product) in jewelers shop. In other FMCG company customers are brand preferred, means for purchasing this type of goods at least the consumers has to decide what item he is going to purchase.


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COMPANY PROFILE


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HISTORY OF PEPSIPEPSICO HEADQUARTERS:PepsiCo World Headquarters is located in Purchase, New York. Edward Durreil Stone, one of Americas foremost architects, designed the seven building headquarters complex. Pepsi Co is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 1,43,000 employees. The building occupies 10 acres out of a 144 acre complex that includes the Donald M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting. The gardens were originally designed by the world famous garden planner, Russell Page, and have been extended by Francois Goffinet. The grounds are open to the public, and a visitors booth is in operation during the spring and summer. HISTORY OF PEPSI: The Pepsi Cola Company began in 1898, but it only became known as PepsiCo when it merged with Frito Lay in 1965. PepsiCo purchased Tropicana in 1998, and Quaker Oats in 2001. The brand was trademarked on June 16, 1903, though pharmacist Celeb Bhadham first made the drink on August 28, 1898. Pepsi was originally intended to cure stomach pains. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented warehouse. This year, Bradham sold 7968 gallons of syrup. The next year, Pepsi was sold in six ounce bottles and sales increased to 19848 gallons. In 1905 Pepsi received its first logo redesigned from the original design of 1898. In 1906, the logo was changed again. In 1923, PepsiCo went bankrupt due to high sugar prices as a result of World War I, assets ware sold and Roy C Megarel bought the Pepsi trademark. Eight years later, the company went bankrupt again, resulting in a reformulation of the Pepsi Cola syrup formula. CORPORATE CITIZE SHIP: PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope ofKIIT SCHOOL OF MANAGEMENT Page | 9

PepsiCothis support is extensive-ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PepsiCo employees volunteer. FRITO-LAY: PepsiCos snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product a com chip- and started an entirely new industry. The product was Fritos brand com chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Fay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Today, Frito-Lay brands account more than half of the U.S snack chip industry. PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retail snack chip sales. Products are available in some 120 countries. Frito-Lay North America includes Canada and the United States. Major Frito-lay International markets include Australia, Brazil, Mexico, the Netherlands, South Africa, the United Kingdom and Spain. Often Frito-Lay products are known by local names. These names include Mattoon in Spain, Sacristans and Gamesa in Mexico, Elma Chips in Brazil. Walkers in the United Kingdom and others. The Company markets Frito-Lay brands on a global level, and introduces lucts for local tastes. Major Frito-Lay products include Ruffles, La/s and Doritos brands snack chips. Other major brands Include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and Sun Chips multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers.


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PEPSI-COLA: Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola, founded PepsiCos beverage business at the turn of the century. Today consumers spend about $33 billion on Pepsi Cola beverages. Brand Pepsi and other Pepsi-Cola products-including Diet Pepsi, Pepsi One, Mountain Dew, Slice, Sierra Mist and Mug brands account for nearly onethird of total soft drink sales in the United States, a consumer marker totaling about $60 billion. Pepsi-Cola also offers a variety of non-carbonated beverages including Aquafina bottled water, Fruit works and All Sport. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink coffee through a partnership with Starbucks. In 2001 SoBe became a part of Pepsi-Cola. So Be manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredient. Outside the United States, Pepsi-Cola soft drink operations include the business of 7Up International. Pepsi-Cola beverages are available in about 160 countries and territories. Pepsi-Cola began selling its products internationally in 1934 with aerations in Canada. Operations grew rapidly beginning in the addition to brands marketed in the United States; major products include Miranda and Pepsi Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola Bottlers and food service customers. This includes some of the worlds best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.


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GATORADE & TROPICA A: The company entered the concentrate orange juice Tropicana which was founded in 1947 by Anthony Rossi as a Florida fruit packaging business in 1949, registering Tropicana as a trademark. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-fromconcentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the companys flagship product. In 1957 the name of the company was changed to Tropicana Products, headquartered in Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods Co. in 1978, acquired by Kohl berg Kravis & Roberts in 1986 and sold to The Seagram Company Ltd, in 1988. Seagram purchased the Dole global juice in 1995. Pepsi-Cola acquired Tropicana, including the Dole juice business, in August 1998. Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure Premium, Tropicana Seasons Best, Dole juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Fruit Vita, Looza and Copella. Tropicana pure Premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports drinks were acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the schools football team, The Gators, Gatorade is now the worlds leading sports drink. QUAKER FOODS: The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figure of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today.KIIT SCHOOL OF MANAGEMENT Page | 12

PepsiCoIn Cedar Rapids, Iowa, John Stuart and his son Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as The Oatmeal King, had founded German Mills American Oatmeal Company in 1856. The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quake ompany r Oats Cin 2001. Its products still have the eminence of wholesome, good-foryou food, as envisioned by the company over a century ago.


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HISTORY OF PEPSI I DIA: 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 Ltd. This joint venture marketed and sold Lehar Pepsi until 1991 when the uses of foreign brands are allowed. PepsiCo bought out its partners and ended the joint venture in 1994. Other 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 Indias sometimes acrimonious relationship with huge multinational companies. Indeed, some argue, PepsiCo and Coca Cola Company have been major targets in part, because they are well-known foreign companies that draw plenty of attention. In 2003 the Central for Science and Environment (CSE), a nongovernmental organization in New Delhi, said aerated water produced by soft drinks manufactures in India including multinational giants PepsiCo and Coca Cola Company contained toxins including lindens, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects. Tasted products included Coke, Pepsi, 7Up, Mirinda, Thumps Up, Fanta, Sprite, Limca. CSE found that the Indian produced Pepsis soft drink products has 36 times the level of pesticide residues permitted under European Union regulations, Coca Colas 30 times. CSE said it had tasted the same products in the US and found no such residues. However, this was the European standard for water, not for other drinks. No law bans the presence of pesticides in drinks in India. The Coca Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels for above the norms permitted in the developed world. But an Indian parliamentary committee in 2004 backed up CSEs findings and a government appointed committee is now trying to develop the worlds first pesticide standards for soft drinks. Coke and PepsiCo opposed the move arguing that lab tests arent reliable enough to detect minute traces of pesticides in complex drinks. On December 7, 2004 IndiasKIIT SCHOOL OF MANAGEMENT Page | 14

PepsiCoSupreme Court ruled that both PepsiCo and Coca Cola Company must label all cans and bottles of respective soft drinks with a consumer warning after tests showed unacceptable levels of residual pesticides. Both companies continue to maintain that their products meet all international safety standards without yet implementing the Supreme Court ruling as of 2005, the Coca Cola Company and PepsiCo together hold 95% market share of soft drink sales in India. PepsiCo has also been alleged to practice water piracy due to its role in exploitation of ground water resources resulting in scarcity of drinking water for the natives of Pudussery panchayat in the Palakkad district in Kerala, India. Local residents have been pressuring the government to close down the PepsiCo unit in the village.


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MISSIO OF PEPSIOur mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

VISIO OF PEPSI"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environment, social, economic creating a better tomorrow than today." Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

PERFORMA CE WITH PURPOSEAt PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society delivering what we call Performance with Purpose. Our approach to superior financial performance is straightforward drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.


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MILESTO ES2008 Milestones:

PepsiCo Foundation announces two major new grants to WaterPartners and Safe Water Network programs to provide access to safe water and sanitation in developing countries PepsiCo Again Named to the Dow Jones Sustainability Index PepsiCo Agrees to Buy Bulgaria's Leading Nuts and Seeds Company PepsiCo Announces Initiatives With the Earth Institute and H2O Africa to Drive Sustainable Water Practices Forbes Names PepsiCo Among Its Best Big Companies PepsiCo India Commissions First Remote Wind Turbine to Generate Renewable, Clean Energy CRO Names PepsiCo to Top 25 100 Best Corporate Citizens 2008 PepsiCo to Buy Russian Juice Leader, Lebedyansky Employees Lead Effort to Make Chicago Plaza First LEED-Certified PepsiCo Headquarters Gatorade Launches Gatorade Tiger with Comprehensive Integrated Marketing Campaign PepsiCo Honored with 2008 Energy Star Partner of the Year Award UK Vitamin Water Brand- V Water Acquired by PepsiCo Quaker Plant in Cedar Rapids Closes and Reopens Facility Due to Flooding to Protect Employees PepsiCo Foodservice and Naked Juice Expand Starbucks Presence Gatorade Sports Science Institute Gathers World's Leading Researchers on Protein Nutrition PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award Wall Street Journal Article Recognizes PepsiCo for Leadership in Employment of People with Different Abilities PepsiCo and Frito-Lay Join SmartWay in Commitment to Reduce Greenhouse Gas Emissions PepsiCo Beats Coke in Race to Launch New Natural Sweetener (Stevia)KIIT SCHOOL OF MANAGEMENT Page | 17

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PepsiCo France Recognized as "Great Place To Work" by Institute Survey Subway Names PepsiCo "Vendor of the Year" for Sustainability Leadership Tazo Tea Joins Pepsi Lipton Partnership .

About Tripty Drinks Pvt.LtdM/s. Tripty Drinks (P) Limited is a well known manufacturing organization in the state of Orissa for manufacturing and sales of Soft Drinks since last 32 years. This unit was incorporated its self as a manufacturing unit in the year 1968 and started its production in 1969. Since its inception the unit is engaged in manufacturing soft drinks of different brands taking franchisee from the brand name owner. Initially they grew by manufacturing Coca brands of products. There after they took franchisee of Mc Dowell and since 1991 they have been manufacturing Pepsi brand of products. It is only bottling unit of Pepsi brand of product. In the State of Orissa PEPSI is brought to you by the renowned Tripty Drinks Pvt. Ltd., Jagatapur (Cuttack) best professionally managed company promoted by the Jaipuria Group. The promoters vast experience for the last thirty five years in manufacturing national and world renowned brands such as Pepsi, 7up, Slice, Mirinda, Mountain Dew, etc. has helped deliver to the consumer consistent quality comparable to the best of International Standards. Todays fast paced life style and ever-changing DRINKS style demand superior quality, ready to use (Added Flavour) in convenient packaging. The PEPSI Drink meets these very demands. The company firmly believes in modernization and up-gradation of facilities in order to offer its customers the very best. A close on newer and better food technologies emerging in the world and the company is known to immediately implement the latest breakthroughs at its modern hi-tech plant. At Tripty Drinks Pvt. Ltd. the implicit belief is in achieving leadership status through quality assurance and every effort is focused in this direction. The latest state-of-the-art plant delivers the finest quality juice, adhering to theKIIT SCHOOL OF MANAGEMENT Page | 18

PepsiComost stringent norms. Strict supervision is enforced by diligent people at every step of the production process. The juice products manufactured are hygienically handled and very effort is made to retain its freshness and wholesomeness. Consistency in taste is achieved to the expert in-house QC Professionals. By blending in superior quality with the fine arena of business the company looks forward to establishing leadership in near future. By concocting a superb strategy the professionals at Tripty Drinks Pvt Ltd have exemplified their marketing and sales capabilities to enhance the value of PEPSI. The marketing gurus at Tripty Drinks Pvt. Ltd. have understood the finer nuances of marketing. The significance of the five Ps, Product, Packaging, Pricing, Place & Promotions has been used to fine turn the strategies. The core management team controls the entire network on all India bases and finally monitors the movement of the product in the market place. The daily feedback allows for prompt and swift corrective action to tackle problems, strengthen the brand and achieve rapid growth of all those who associate with its publicity and advertising strategies have been designed to be in tandem with the market needs, and this is expected to further boost the sales as well as create a brand name to reckon with.

LOCATIO & AREA COVERED BY TRIPTY DRI KS PVT. LTD.M/s. Tripty Drinks Pvt. Ltd. is located at Jagatpur Industrial Area, 7 km away from Cuttack City, the old capital of the State of Orissa and heart of business activities in the state. The factory is situated on the bank of the river Mahanadi, the largest river in the state and in the side of National Highway-5. The factory is also close to railway-station and correctly located for transport of raw materials and finished products. The factory acquires 7.6 acres of land out of which 2.5 acres are built-up area for factorys plant and machinery and administrative offices.


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SALIE T FEATURES OF THE COMPA Y: Date of Incorporation :12.05. 1967 Commencement of Production :-16. 07. 1968 Registered Office :Production Capacity :Godown Stock Cpacity :Total land area :Built up area :Market covered :Jagatpur, Cuttack 754021 38 lakhs cases per annum 1,20,000 cases 7.6 acres 2.5 acres Orissa State

DEPARTME T OF TRIPTY DRI KS PVT. LTD. The Bottling plant at Jagatpur, Cuttack is a franchisee operated bottling operation plant and is owned by the Jaipuria Group. Previously the Goenka owned it, but it was brought over by the Jaipuria and many infrastructures have been added since, not to mention the state-of-art plants with major automation. Tripty Drinks Pvt. Ltd. does the bottling and the marketing. At the top of the organizational hierarchy is Mr. P.S.Kumar (CEO), bitterly known as BUM or Business Unit Manager in the states. The major four departments functioning under him are: HUMA RESOURCES: Mr.Deepak Pani is the GM (HR) and he looks after all the human elements of the organization. This department deals with the effective and efficient control and use of man power as differently from other sources of power. The personal officer and 3 assistants help the GM (HR). SALES A D MARKETI G:


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PepsiCoMr. Sanjay kumar Gupta (H.O.S.) heads the department with over 15 years of experience backing him up. Under him the other supporting body are: Market Development Manager (MDM) Territory Development Manager (TDM) Account Development Coordinates (ADC) Customer Executives(CE) PRODUCTIO : The Production department looks after the production, quality checking etc. It is headed by Mr. Deepak Pani, GM (Production) and supported by Manager (Production), Manager (Maintenance) and Manager (Quality Control). FI A CE: Mr. P.K. Sahu (FM) and Mr. Tapan Panda (FM) department of finance. They are engaged in preparation of day-to-day transaction and also the preparation of various books required for the maintenance of assets and liabilities of the company.

THE PROCESS OF MA UFACTURI G: The process of manufacturing Soft Drinks and fruit juices under PEPSI brand is divided in to mainly five parts such as: Water treatment. Syrup making. Bottle washing. Filing. Crowning and coding. Testing of the product. WATER TREATME T: Water treatment is very essential in soft drinks plant as the nature and quality of water varies from place to place. To set uniform and standard water the process of treatment is carried on. The water taken from Bore well by the help of water pump and pipe lines are collected in a storage tank where is prechlorinated by chlorinate and then by the help of pipe lines comes to a treatment tank called coagulator tank where this water solution of different strength of bleaching powder, ferrous sulphate, hydrate line are added through dosing pumpKIIT SCHOOL OF MANAGEMENT Page | 21

PepsiCoto reduce alkalinity, hardness and kill the bacteria. A mechanical stirrer mixes the chemical and then the suspended water settles down as sludge and clean water passes through retention tank. From this tank, the water passes through sand filter containing fine sand and pebbles and carbon filter contains granular carbon and finally through water polisher, micron filter, UV lamp to ensure clear and sanitary water for use. Further water used in the bottle washer and boiler needs softening. For this purpose the water from storage tank, after passing through two filter beds containing fine sand and granular carbon happens through a bed of Resin where it is softened. This soft water is essential for use in Bottle washer to reduce scale formation inside the machine. SYRUP MAKI G: For syrup making of a particular brand, collect quantity of sugar, water activated carbon (powder) and hyflow super cell known as filter aid are taken into a sugar dissolving tank which is specially designed making a vacuum space to enter steam and also fitted by a motor with agitator. Sugar syrup called raw syrup is prepared by developing the sugar with continuous stirring and heating by steam supplied by oil-fired Boiler. This hot syrup with the help of a pump is filtered through a filter press attach with a series of quality filter paper to separate out carbonated particles. BOTTLE WASHI G: Bottle washing is an important part in soft drink plant. The emptied durable and returnable bottles are used and returned from market in plastic crates are fed to bottle washing machine (Washer). The machine double end system with circular chin to carry the bottles Caustic soda, Tri-Sodium Phosphate, Sodium-Gluconate are added to the caustic tank filled in with water heated by steam supplied by the boiler. The empty bottles enter to the hot caustic tank in one end and after being cleaned by the hot caustic solution and finally washed with water through spray-jets fitted are discharged in other end. Then washed bottles pass on conveyor chain against laminated board for further inspection in the direction-filling machine. FILLI G: Finished syrup and treated water line are connected to a dosing pump which mixes syrup and water with the ratio of 1:5 and syrup mixed with water entered to carbonated tank to mix with carbon-DI-oxide gas are preserved in cylinder for use. The cylinders are connected through CO2 manifold tank to use requisite quantity of gas. The syrup passes through PHE, which is cooled itself byKIIT SCHOOL OF MANAGEMENT Page | 22

PepsiCocirculation of chilled, glycol supplied chilling compressor. To run the machine F-22 gas is used. The syrup being chilled easily mixes with CO2 gas and enters to the filter for bottling. The filter is fitted with filling valves and lift cylinders. CROW I G A D CODI G: After beverage is filled in bottles it immediately goes to the crowner where with the help of crown crock the bottles are sealed (Crowned) to protect the carbonating, flavor, outside contamination and spoilage till the contained beverage is consumed. Then sealed bottles passed on the conveyor chain are coded by a coding machine on their way to out-end. The sealed bottles are inspected properly against inspection light while passing through the conveyor fitted with SS chain. The empty plastic crates passing through a conveyor enter to crate washer machine and it is washed and moves through the conveyor where finished products are accumulated. Then the products are kept in plastic crates, which are durable in nature and returnable by buyer, put on palates and sent to shipping for shipment. All the containers in contact with the syrup are properly cleaned and sanitized by soda bio-crb, hot water, hot caustic soda solution and strong chorine dose.

TEST OF PRODUCTS: Finally the finished syrup during bottling is tested in laboratory to meet the permanent and also to get standard & quality products. To maintain the standard uniformity in the products the sugar contains and carbonation in the filled bottles are checked in regular interval by certified bricks-hydrometers, refractor meters and pressure gauge. The dead intervals tested are used to calculate pressure gauge, to know the current pressure.


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PepsiCo Logo & Brand PepsiCo LogoPEPSICO PEPSICO

PepsiCo Brand1.Pepsi- The mother product. It is a carbonated water.


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Ambassador of Pepsi India

2. Slice is a line of fruit flavored soft drink


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Ambassador of Slice

3. 7UP is a brand of a lemon lime flavored non-caffeinated soft drink


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4. Mirinda is a brand of soft drink available in orange and lime flavour

Ambassador of Mirinda.


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5. Mountain Dew is a caffeinated sweet citrus flavored soft drink

6. Aquafina is the mineral water product of PepsiCo.


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SALES A D MARKETI G RELATIO SHIP

Marketing plays a very important part in sales. If the marketing department generates a potential customers list, it can be beneficial for sales. The marketing departments goal is to bring people to the sales team using promotional techniques. Advertising Sales promotion Publicity Public Relations. In most large corporations, the marketing department is structured in a similar fashion to the sales department and the management of these teams must coordinate efforts in order to drive profits and business success. Driving more customers through the door gives the sales department a better chance by ration of selling their product to the consumer.


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PROMOTIOIt involves disseminating information about a product, product line, brand, or company. It is company. It is one of the four Key aspects of the marketing mix.(The other three elements are product management, pricing and distribution.) Promotion is generally sub-divided into two parts:

Above the line Promotion:Promotion in the media (e.g. TV, radio, newspapers, Internet and Mobile Phones) in which the advertising agency to Place the ad.

Below the line Promotion :All other promotion. Much of this is intended to be subtle enough that the consumer is unaware that promotion, merchandising, direct mail, Personal selling, Public relations, trade shows. The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, and creation of brand equity, Positioning, competitive retaliations, or creation of a corporate image. An example of a fully integrated, long-term, large-scale promotion are and Pepsi Stuff.


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Objective of Sale PromotionSimulating business user or household for demand products. Improving the market performance of middle men and sale people. To attract new customer. To increase impulse selling. To encourage greater use by existing customers. Superior Merchandizing. Increase stocks and push sales. Better product knowledge (as a spin off). Better shelf-space at retails stores. Immediate results. Improvement of Dealer response in future. To supports the advertising Program To support the sales team drive. To support the sales channels-trade. To accelerate the sales To drive the people traffic to the point of sales. To stimulate the people to make the buying decision. To influence the people to choose a particular brand. To help the retail to move the merchandise To help to liquidate the stocks. To help to overcome the competition. To help to gain the market share.


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PepsiCo

Factor affecting of Sales Promotion:Internal Factors:Promotion is accepted by top management as effective sales tools. Now a days top level manager relies and accept that sales promotion effects sales it will increase the sales volume. Product managers are qualified to use sales promotion tools product manager relies the importance of sales promotions hence they practice sales promotion tools effectively. It is the duty product manager to increase the sales volume and this attracts the sales promotions tools to achieve the aimed objective.

External FactorsThere is wide spread use of branding promotional activities are essential as they as they are more practical than advertising. Competitor have become promotional-minded there is cut-throat competition and the market is flooded with numerous products hence promotional activities are essential. During the period of inflation & recession the consumer are more deal oriented and the promotional technique facilitate sales. The present stage of trade demands more deals from manufacturers.

Consumer Sales Promotion:Sales promotions targeted at the consumer are called consumer sales promotions. Consumer sales promotions are steered toward the ultimate product users- typically individual shoppers in the local market. Following are some of the key techniques used in consumer-oriented sales promotions.


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PepsiCoPRICE DEALS:A consumer price deal saves the buyer money when a product is purchased. The main typed of price deals include discount, bonus pack deals, refunds or rebates, and coupons. Price deals are usually intended to encourage trial use of a new product or line extension, to recruit new buyers for a mature product, or to convince existing customers to increase their purchases, accelerate their use or purchase multiple units.

CO TESTS/SWEEPST AKES:The main difference between contests and sweepstakes is that contests require entrants to perform a task or demonstrate a skill that is judged in order to be deemed a winner, while sweepstakes involve a random drawing or chance contest that may or may not have an entry requirement. At one time, contests were more commonly used as sales promotions, mostly due to legal restrictions on gambling that many marketers feared might apply to sweepstakes. But the use of sweepstakes as a promotional tactic has grown dramatically in recent decades, partly because of legal changes and partly because of their lower cost.

SPECIAL EVE TS:Events tend to attract a homogeneous audience that is very appreciative of the sponsors. Therefore, if a product fits well with the event and its audience, the impact of the sales promotion will be high.

PREMIUMS:A premium is tangible compensation that is given as incentive for performing a particular act- usually buying a product. The premium may be given or free, or may be offered to consumers for a significantly reduced price.

CO TI UITY PROGRAMS:Continuity programs retain brand users over a long time period by offering ongoing motivation or incentives . Continuity programs demand that consumers keep buying the product in order to get the premium in the future.


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PepsiCoObjectives of Consumer Promotion & Vehicles Used Achieve Them Consumer Promotion Objectives Vehicles Used Coupons Generate Trial A Discount Sales i. New Products ii.Related Products iii. Brand Switchers B Enquiries Free Samples Contests Demonstrations Gifts Mail-in Coupons Catalogue Offers C Repurchase On pack Coupons Mail-in Coupons D Traffic Building Special Events Annual Sales Festivals Sales Retailer Coupons E Increased Rate of Purchase Multipacks Special Price for twos Information on new usages situations.


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PepsiCo

Consumer Sales Promotion TechniquesPrice deal: A temporary reduction in the price, such as happy hour. Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stiff and A Advantage. Cents-off deal: Offers a brand at a lower price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price ( for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales Promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales. Free-standing insert(FSI): A coupon booklet is inserted into the local newspapers for delivery. On- shelf couponing: On checkout the customer is given a coupon based on products purchased. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. On-line couponing: Coupons are available on line Consumers print them out and take them to. Mobile couponing: Coupons are available on a mobile phone. Consumers show the show the offer on a mobile phone to salesperson for redemption. Online interactive promotion game: Consumers Play an interactive game associated with the promoted product. See an example of the interactive Internet Ad.KIIT SCHOOL OF MANAGEMENT Page | 35

PepsiCoRebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. Point-of-sale displays: Aisle interrupter: A sign the juts into the aisle from the shelf. Dangler: A sign that sways when a consumer walks by it. Dump bin: a bin full of products dumped inside. Glorifier: A small stage that elevates a product above other products. Wobblers: A sign that jiggles. Lipstick Board: A board on which messages are written in crayon. Necker: A coupon Placed on the neck of a bottle. YES unit: your extra salesperson is a pull-out fact sheet.


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PepsiCo

Trade Sales promotion:Sales promotions targeted at retailers and wholesale are called trade sales promotions. Trade sales promotions target resellers- wholesalers and retailerswho carry the marketers product. A trade sales promotion is targeted at resellers- wholesalers and retailerswho distribute manufacturers products to the ultimate consumers. The Objective of sales promotions aimed at the trade is different from those directed at consumers. In general, trade sales promotions hope to accomplish for goals: Develop in-store merchandising support, as strong support at the retails store level is the key to closing the loop between the customer and the sale. Control inventory by increasing or depleting inventory levels, thus helping to eliminate seasonal peak and valleys. Expand or improve distribution by opening up new sales areas (trade promotions are also sometimes used to distribute a new size of the Product). Generate excitement about the product among those responsible for selling it. Some of the most common forms of trade promotions- Profiled below- include point-of- purchase displays, trade shows, sales meeting, sales contests, push money, deal loaders, and promotional allowances.

POI TS-OF-PURCHASE (POP) DISPLAYS:Manufacturers provide point-of-purchase (POP) display units free to retailers in order to promote a particular brand or ground of products. The forms of POP displays include special racks, display cartons, banners, signs, price cards, and mechanical product dispensers.

PUSH MO EY:Similarly, push money (PM)- also known as spiffs- is an extra payment given to sales people for meeting a specified sales goal.


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PepsiCoDEAL LOADERS:A deal loader is a premium given by a manufacturer to a retailer for ordering a certain quantity of product. Two types of deal loaders are most typical. Buying loader, which is a gift given for making a specified order size. Display loader, which means the display is given to the retailer after the campaign.

TRADE DEALS.Trade deals are special price concessions superseding, for a limited time, the normal purchasing discounts given to the trade. Trade deals include a group of tactics having a common theme-to encourage sellers to specially promote a product. The marketer might receive special displays, larger-than usual orders, superior in-store locations, or greater advertising effort. In exchange, the retailer might receive special allowances, discounts, goods, or money.

Objectives & Vehicles in Trade PromotionsObjectives Inventory Building Vehicles Higher Margins. Allowance for additional shelf & merchandizing. Promotional Support Returns Allowance Joint Promotions Sales Contents Merchandize Allowances Subsidy for promotional Budgets.


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PepsiCo

Trade sales promotion techniquesTrade allowance: Short term incentive offered to induce a retailer to stock up on a product. Dealer loader: An incentive given to induce a retailer to purchase and display a product. Trade contest: A contest to reward retailers that sell the most products. Point of-purchase displays: Extra sales tools given to retailers to boost sales. Training programs : Dealer employees are trained in selling the product. Push money: also known as spiffs. An extra commission paid to retail employees to push products. Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function.

Merits of Sales Promotions:It stimulates in the consumers & attitudes towards the products. It creates a better incentive in the consumers to make a purchase. It is a demand creator. It gives direct inducement to the consumer to take immediate action. It is a flexible. It can be used at any stage of any product introduction. Sales promotion leads to low unit-cost.KIIT SCHOOL OF MANAGEMENT Page | 39

PepsiCoIt is an effective supports of sales. It helps the salesmen makes his efforts more productive. The promotional tool is the most effective to be used in increasing the sales volume.

Demerits of Sales Promotions:Sales promotions are only supplementary devices to supplement selling efforts of others promotional tools. Sales promotions activities are having temporary and short life. Brand image is affected by too many sales promotions activities consumer are of the opinions that due to the lack of popularity and over stocking of products of a company these sales promotional activities are conducted. Discount or rebates are allowed by boosting the prices of the good. An immediate increase in demands is stimulated by this it is expensive and leads to a rise price of the products. Sales promotion increases the expenses of the company on sales & distribution expenses. Sales promotion increases the burden on the company men. Sales promotion increases the paper work lengthy & complication. Sales promotion decreases the storage capacity in the store house.


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PepsiCoSales promotion increases the maintenance cost of the firm. Sales promotion gives the chance to the distributor to do malpractice.

FOCUS O MARKETI G STRATEGIES OF PEPSIThe marketing strategy used by pepsi involves the following: Focus on availability of product in market. Focus on availability of products in outlet. Pepsi products visible to customers. Regular market vigilance by market developer. Distribution of product according to locality. Focus on Monopoly outlets. Aggressive advertisement. Target core brands. Satisfy market priorities. FOCUS O AVAILABILITY OF PRODUCT I MARKET Pepsi works on DIKHEGA TO BIKEGA philosophy. This is the main formula for marketing strategy of each company. So availability of product in market is clear. For this reason , the market developer daily comes to the market to check their product availability. FOCUS O AVAILABILITY OF PRODUCT I OUTLET There is a difference between availability of product in market as well as in outlet. So pepsi wants its product to be available in EACH OUTLET in the market. FOCUS O VISIBILITY OF PEPSI PRODUCTS I OUTLET The aim of pepsi is that its product should be visible to the customers so it gives VISI-COOLERS & rack to outlets. Availability of visi coolers & rack ensure that more & more products are visible to the customers. REGULAR MARKET VIGILA CE BY MARKET DEVELOPER To know the position of pepsi products in the market, pepsi appoints some executives those go to the market & check availability of products, take care of company assets, check visi-coolers, talk to outlet owners about any problem & take feedback about the product. DISTRIBUTIO OF PRODUCT ACCORDI G TO LOCALITY


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PepsiCoPepsi distributes its products according to locality. Say for example it distributes more RGB in an area where there are more Bars & Restaurants. FOCUS O MO OPOLY OUTLETS Outlets which sale only pepsi products are known as MONOPOLY outlets. These monopoly outlets give more sales to the company.So company gives extra schemes, discounts & gifts to those outlets. SALES PROMOTIO AL SCHEME I PEPSI SOFT DRI KS REFILLI G SCHEME: For the retailer purchase of 1case of RGB (Returnable Glass Bottle) two or three bottles free. SCRATCH CARD: For the retailer wining prize by scratching lucky coupon. UTC (Under The Crown) : Both the retailer as well as the Customer will get the amount coded under the crown. QPS (Quantity Per Sales) : This scheme is only for retailer to motivate for high selling volume. In this scheme the retailer will get free bottles according to the cases of PET, RGB, CAN and AQUAFINA purchase. KEY ACCOU T: In this scheme the company ties up with mall, restaurant, big retail shop and hotel on the basis of annual sales volume. The company may tie up at Rs.10 or Rs.15 or Rs.20 or Rs.25 per case of selling. CARD ACCOU T: Under this scheme the company ties up with betel shop, small shopkeeper, retail outlet at Rs.3 orRs.4 or Rs.5 per case of selling. DISPLAY SCHEME: Under this scheme company gives gift to the retailer who display the PEPSI product in the Visi-cooler very well.


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PepsiCo

PRODUCTS AVAILABLE I CUTTACK MARKETThe following products of PEPSI are available in Cuttack market:PRODUCTSPEPSI

In ml.200 300 600 1500 2000 200 300 600 1500 2000

7 up

MIRINDA(0)

200 300 600 1500 2000 200 300 600 1500 2000

MIRINDA(l)

SLICE MOUNTAIN DEW

250 200 2000 1000 300 600

AQUAFINA EVERVESS SODA


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PepsiCo

DISTRIBUTIO CHA

EL OF PEPSI SOFT DRI KS

Tripry Drinks Pvt. Ltd

Distributor

Retailer

Customers


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PepsiCo

SWOT Analysis of PepsiCoSTRE GTH OF PEPSICO:The 1st strength of this company is its brand. 2nd strength is our company CEO Indra Noyee, who knows better norms of India. Huge market coverage, company existence not only in urban area but also in the rural area. Large number of product line to satisfy consumer. Variety of scheme for retailer throughout the year. So that retailer will earn huge profit and also get satisfaction after selling PepsiCo product. Company also gives time to time schemes for the consumer. So that, final consumer interest for repurchase & enjoy the benefit.


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PepsiCo

WEAK ESS OF PEPSICO:In distribution channel distributor is the additional person which is not responsible for the company, because there is no direct link between company and the retailer. Inadequate supply during peak season.

Sales person also not feel that they are working for company, they think only for the distributor. There is no burden on the salesperson about timing for the entry & exit from the market. Salespersons are illiterate so paperwork is very poor. And also workload of C.E increases because C.E has to give time to manage paperwork. There is no any clear- cut rule for provide Vi-Si Cooler to the retailer, related to time management. Pepsi the brand is not appreciated by the BBSR consumer, which is the mother product.


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PepsiCo

OPPORTU ITIES OF PEPSICOPepsi could develop new products or product designing of Pepsi brand for the Cuttack market. Competitors have poor products such as Fanta, Limca, Sprite, Coco cola can. Profit margins will be good, if company will follow aggressive marketing strategy. End-users respond to new ideas, such as launch of other flavors of slice. Pepsi have a great chance to extend to rural area. New Specialist applications, such as Sponsorship, trade fair, free sample. Marketing done directly from the company i.e no middle men is required between company & retailer.


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PepsiCo

THREATS OF PEPSICOExisting core business distribution risk. Market demand very seasonal. Introduction of LMN by Parle-Agro Coke cracking some good outlets and converting them to Coke MONOPOLY outlets. Retention of key staff critical. Retailer distract from core business, such as retailer demand to keep slice only and not for Pepsi. Legislation could impact; mean local taxation policy and business policy of state & central government. Environmental effects would favor larger competitors, such as Thums up has highly demanded but the profit is low but retailer is not interested to keep our product.


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PepsiCo

LIVE PROJECT I CUTTACK MARKETDuring My Two months project , I worked in the cuttack market with the following team:1)Mr. Sanjay Kumar Gupta (Head of Sales) 2) Mr. Ashwini Das ( Territory Development Manager) 3)Mr. P Swain (Account Development Co-ordinate) 4) Mr. Asim Bhowmik (Customer Executive) 5) Lullu Behera (Sales Person) 6) Muna Moharana (Sales Person) 7) Chotu (Sales Person) METHODOLOGY USED FOR MY WORK: First, I travelled with the company vehicle to know the area covered by the distributor. After knowing the area properly, I tried to touch each and every PEPSI outlet everyday so that pepsi monopoly counters get adequate stock during the peak season.

During the period, I made sure that schemes are given properly to the retailers which included educating retailers of the benefits of the scheme and in the process increase the sales. I did PLANOGRAM for Visi Coolers and ensured that atleast 4 Planograms are done per day.

Then I worked on to make pepsi products available in each and every outlet of my area. It was during this period when I cracked Coke outlets. I also developed new counters for pepsi during my period of work. During the period , I also prepared my DAILY SALES REPORT.


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PepsiCo

OBJECTIVE OF THE STUDYThe objective of my project study is :To determine the market share of various PEPSI products in Cuttack. To determine the number of MONOPOLY PEPSI outlets in Cuttack market. To determine the competitors position in the market. To determine the annual sales volume of Pepsi products. To determine the availability of Visi-cooler in the outlets. Ensuring the visibility of the product. Ensuring availability of the products in the market. Analyzing the effect of the scheme.


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PepsiCo

SCOPE OF THE STUDYGeographical scope of the study is Cuttack city only. The data I have collected is from 168 different shops in different areas of the city. The study is mainly concerned with the PEPSI Company in finding out the position of the PEPSI Company in Cuttack market in present market scenario. In the duration of study and project period, I observed that the market response of PepsiCo Product is in good position, but sales volume is not at par. The sales policy of our company is affected due to competitor Market strategy for sale. I prepared questions on sales promotions to know the response of current promotion packs given by company to retailers in the market. Through this project, I came to know about that which type of promotional scheme the outlets wants. I can easily know about how the sale promotion affects the Annual Sales volume. We get the percentage of exclusive and mixed outlets of PepsiCo India Products. We get the percentage number of outlets in nature( i.e. Seasonal vs. Non seasonal). We get the reaction of the outlets owner how they react with the promotional scheme. Hence we can say that, a well planed & future oriented sales promotion will give a good sales volume. The finding recognition based on the analysis of the retail outlets opinion, which is collected through the personal interview and questionnaire.


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PepsiCo

LIMITATIO OF THE STUDYThe major limitation of the study was that in depth study in the subject could not be done into time consideration as well as underlined in nature. The other limitations are: The company does not declare all the data and internal data are kept confidential. Non co-operation and biasness of some shopkeepers make it different to analysis the report. The study was small in size to gather accurate information about the project. My project done in Cuttack may not present the actual figure of the whole India. Incomes considered are doubtful.


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PepsiCoCUTTACK DISTRIBUTORS PROFILEThere are a total of 12 Distributors operating in Cuttack. The details of the distributor under which I worked is as follows:

ame: J.J. E TERPRISES Address of godown: Shree Vihar Colony, Near Biju Pattanaik Chaka, Cuttack. Staff employed: 12 Manager- 1 Sales Person- 3 Drivers- 3 Officials- 3 Labours-2 Vehicles: 3 (1 Ace & 2 Mahindra auto) Area Covered:Shree Vihar Colony, Biju Pattanaik Chaka, T.V Road, Hindolkothi, Matha Sahi, Gora Kabar, Panchamukhi Chaka, Barabati Stadium, Gadachandi, Gadagadia, Mission Road, Cantonment Road ,Manisahu Chaka, Ymca Chaka, uapatna, Matamath, Buxi Bazar, Pension Lane, Patapole, Bepari Sahi, Kesharpur, Rausapatna, Seminary Chaka, Haripur, Dolamundai Chaka.


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PepsiCo

Schemes Given During the PeriodPERIOD 02/04/09-15/04/09 16/04/09 24/04/09 20/04/09 23/04/09 SCHEMES GIVEN 2 Bottles AQUAFINA free on 200ml/300ml/2L PEPSI case. 2RGB Free on 200ml/300ml PEPSI, MIRINDA & DEW case. 2 RGB Free on 200ml PEPSI, MIRINDA & DEW case. 1RGB Free on 200ml 7UP case. 2RGB Free on 300ml PEPSI, MIRINDA & DEW case. Three 600ml pet free on 1 case of 600ml PET (all flavors). Three 600ml pet free on 1 case of 600ml PET (all flavors). 2RGB free on 200ml/300ml PEPSI. 1 AQUAFINA free on 200ml RGB case. SIX 600ml pet free on 600ml & 2LITRE case( all flavors). SIX 600ml pet free on 600ml & 2LITRE case( all flavors).

25/04/09 30/04/09

07/05/09 09/05/09

09/05/09 19/05/09


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PepsiCo

COOLER I STALLATIO PROCESSCompany set the coolers in a systematic way. The way is following :1. To know where the cooler is sitiing inside the outlet or outside the outlet. 2. If outside, then the night cover is set at the place where the cooler is set. 3. After installation of the guarder then the cooler is set in the guarder. 4. When cooler has been set in guarder then the trays are set inside the cooler. 5. CHARGI G :-When the cooler is properly installed in the outlet, it is then charged by PEPSI products according to the brand order. BE EFITS OF I STALLI G A COOLER OUTSIDE THE OUTLET 1. Larger income More consumers will buy beverages from outlet. 2. Increase in selling space. 3. Setting a cooler outside arouses more consumer interest and sales increases through good beverage exposure. 4. When installed outside, it increases the number of consumers visiting the outlet. 5. Easier access to chilled products triggers the consumer purchase impulse. 6. Effective use of outlet space thus saves warehouse area. 7. Attractive and eyecatching form of beverage presentation. 8. Complimentary service for installation and maintenance. BE EFITS OF SETTI G A COOLER I SIDE THE OUTLET 1. Larger Income :- More consumers will buy beverages from outlet. 2. Easier access to chilled products triggers the consumers purchasing impulse. 3. Chilled beverages taste better and hold greater value for consumers. 4. Best utilisation of outlet space thereby saving warehouse area. 5. Complimentary service for installation and maintenance. BE EFITS OF I STALLI G A VISICOOLER 1. Eye catching display of products. 2. Consumers easier access to the products. 3. Increase in sales as when consumer sees the product, he becomes tempted to buy the product. 4. It fulfills the consumers want & willingness.KIIT SCHOOL OF MANAGEMENT Page | 55

PepsiCo5. Easier access of stocks by the sales person. BE EFITS OF SETI G UP ME U BOARDS WITH COMBO Transaction value increases ( meal plus beverages) and thereby trade turnover and income are raised. Attractive offer for the consumers. Combo visualization shortens consumers decision making time. Seeing saving communication, consumers perceive combo as promotion and thus but more enthusiastically. Combo price is prominently visible to the consumer.

1. 2. 3. 4. 5.

BE EFITS OF SETTI G A HA GI G RACK 1. Easier access to the products for the consumers. 2. Easier product merchandising. 3. Products are placed in order and are visible properly. 4. Selling space increases by use of small outlet space. 5. Hanging rack on the way catch sight of consumers arousing in them the impulse to purchase.


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PepsiCo

PLA OGRAMAfter the Visi-Cooler is set inside the outlet, the next step is Charging the cooler i.e putting all pepsi products that is available at the outlet into the Visi cooler. After charging is done, Planogram should be done at the outlets i.e there is a order in which pepsi products should be kept. The planogram is different for different sizes of Visi cooler i.e the planogram for a 165 litre Visi is different from the planogram of 220 litres. The Pepsi products should be cleaned with a neat cloth and then they should be kept inside the Visi. The Visi should be cleaned with a neat cloth as well.

PURITY OF VISI-COOLERThe Visi is said to be pure only when Pepsi products are loaded inside it. If any product other than Pepsi product is put inside the Visi-cooler, then the Visi is said to be impure. All precautions should be taken to ensure that the Visi is kept pure

EXCLUSIVE COKE /MIX COU TERS WHERE I MADE PEPSI AVAILABLE NAME 1)RENDEZVOUS 2)SIBANI STORE 3)TULSI STORE 4)PURNIMA STORE 5)PURUSHOTTAM LASSI 6)BARAHI COMMUNICATION 7)DAILY NEEDS 8)MAHIMA VARIETY STORE 9)SHANKAR BETEL SHOP 10)MAMA BANGLES 11)CHANDAN BETEL SHOP 12)GANESH STORE ADDRESS MISSION ROAD BEPARI SAHI MERIA BAZAR MERIA BAZAR MERIA BAZAR KESHARPUR MERIA BAZAR HARIPUR HARIPUR HARIPUR HARIPUR HARIPURPage | 57


PepsiCo13)TUTU BETEL SHOP 14)MAA MANGALA STORE 15)SWAPNA COMMUNICATION 16)DAS VARIETY STORE 17)FANCY STORE 18)NEEDS HARIPUR HARIPUR PITHAPUR PITHAPUR PITHAPUR BUXI BAZAR


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PepsiCo

DATA A ALYSISIn order to know the market share of Pepsi, survey work was concluded in the month of May, 2009.The functioning of 320 outlets in Cuttack was examined and the result after interception is revealed later in this study. I have personally visited to the168 different outlets in Cuttack city and collected the data through questionnaire and direct interviewing the small entrepreneurs. My data was regarding the selling of the two main brand in India that is Pepsi-cola limited and coca cola limited and the data are collected and analysis for the purpose of making the study complete. After assimilating, recording, classifying, analyzing, and inter trapping and finding, final conclusion has been drawn. It is concluded that: the demand of Pepsi is less than compared to the thums-up the demand of Slice is more than Maza. But in case of Sprite, it is more demanded than 7up. So in order to increase the growth of market share and sales, Taste and preferences of the consumer are to be highlighted and to be taken in to prior concentration. Hence in order to know the most preferred flavor according the stake a survey work is organized. For a successful survey work certain points are to be taken into consideration. It is of immense importance that nobody spares his valuable time for the survey purpose. For this, time factor is to be kept in mind and accordingly the questionnaire prepared. Since the research was conducted in Cuttack City being the busiest city, I had to plan the survey in such a way so that less time was required by a respondent to complete or fill up the questionnaire. This analysis is divided in to two sub-parts:Analysis of data collected through questionnaire. Analysis based on different shop in different areas.KIIT SCHOOL OF MANAGEMENT Page | 59

PepsiCoA Total of 168 outlets were surveyed with the following questionnaire: 1) Status of outlet 2) Type of outlet 3) Annual volume of the outlets 4) Visi availability of outlets 5) Total filled RGB in the outlet 6) Total pet available at the outlet 7) Total water cases available at the outlet 8) Best distributor service provided 9) Best scheme given 10) Best company people visit 11) Availability of GLOW signboard 12) Promotional scheme that is appreciated by retailer.

The findings of the survey carried out are as follows:1) Out of 168 outlets surveyed, it was found that 34 outlets were exclusive found PEPSI outlets, 69 were coke exclusive and rest 65 were mix counters. PCI 34 CCX MIX TOTAL 69 65 168

STATUS39% 20%PCI CCX

41%

MIX


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PepsiCo

2) It was found that 130 outlets were Convenience store, 29 outlets were Eatery and rest 9 are Grocery stores. 130 Convenience Eatery 29 Grocery 9 Total 168

OUTLET TYPE5% 17%CONVENIENCE EATERY

78%

GROCERY


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PepsiCo3) Total annual volume of outlets was found to be 48210 cases, out of which 17440 were pepsi cases and 30770 were coke cases. 17440 PCI CCX 30770 TOTAL 48210

ANNUAL VOLUME

36%PCI

64%

CCX

4) Out of 168 outlets, 57 outlets were found to be having Pepsi Visi, 92 outlets were having Coke Visi and rest 39 outlets were Having their Own cooling apparatus. PCI 57 CCX 92 OWN 39 TOTAL 168

VISI AVAILABILITY21% 30%PCI CCX

49%

OWN


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PepsiCo5) Total PCI RGB filled was found to be 259 cases whereas total CCX RGB filled was found to be 469. 259 PCI CCX 469

RGB (FILLED)36% 64%PCI CCX

6) It was found that a total of 190 pet of PCI and 162 pet of CCX were available at the outlets during the survey. 190 PCI CCX 162 TOTAL 352

PET AVAILABILITY

46% 54%PCI CCX


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PepsiCo7) It was found that a total of 45 cases of AQUAFINA, 55 cases of KINLEY AND 360 cases of other mineral water was found. 45 PCI CCX 55 OTHER 360 TOTAL 460

WATER10%

12%PCI CCX

78%

OTHER

8) The findings of best distributor service provided are as follows:

BEST DISTRIBUTOR SERVICE

42% 58%PCI CCX


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PepsiCo

9) The findings of best scheme provided are as follows:

BEST SCHEME20%PCI

80%

CCX

10) The findings of best company people visit are as follows:

BEST COMPANY PEOPLE VISIT

44% 56%PCI CCX


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PepsiCo

11) The availability of glow signboard was found to be:

GLOW SIGNBOARD AVAILABILITY

38% 62%PCI CCX

12) Promotional scheme that is appreciated by retailer:PROMOTI AL SCHEME REFILLING SCRATCH CARD SCHEME UTC QPS DISPLAY GIFTS DISCOUNT/CR KEY & CARD A/C APPRECIATE BY RETAILER 38 6 51 12 16 5 15 25


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PepsiCoPROMOTION APPRECIATED BY RETAILERREFILLING SCRATCH CARD SCHEME UTC QPS DISPLAY GIFTS DISCOUNT / CREDIT KEY & CARD A/C 0 10 20 30 40 50 60

PROMOTION APPRECIATED BY RETAILER

After the survey, I came to know that the retailer appreciates mostly two type of promotional scheme (i.e. UTC & Refilling) because these two schemes are received by outlet owner on the spot of purchases from the sales persons.


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PepsiCoFI DI GS

1. Getting customers is not a difficult task but to retain these customers is a difficult task. 2. The behavior of sales people highly matter for increase the sales. 3. Short term sales increases required to reduce inventory promotion that give large immediate benefits such as money off or bonus pack. 4. Sales promotion schemes like price-off or free gift induce customers to by a new brand. 5. Trade promotions are designed to gain distribution and shelf space. 6. Sales promotions give the consumer an incentive to buy. 7. Sales promotions can be measured objectively to judge their success. 8. The survey resulted that about 90% of the total outlets are nonseasonal outlets, which infer that they sales product throughout the year. On the other side about 10% of the total outlets owners are sales our product on the season only. 9. Out of 168 outlets,34 outlets are exclusive [ who kept Pepsi brand only ] of Pepsi, out of total outlets 65 are of mixed counter [ who kept Pepsi & Coca-cola both] & the rest outlets (69) are of only Coca-cola Counter. 10. The outlets are mostly focusing on glass bottle (i.e. RGB) after that they focus on plastic bottles (i.e. PET), then CAN, Mineral Water & Soda. 11. The retailer appreciates mostly two type of promotional scheme (i.e. UTC & refilling) because these two schemes, outlet owner gets on the spot of purchase form the sales persons. 12. Annual agreement between the outlet owner with the company so as to sell exclusive Pepsi or coca-cola. Here I find maximum of outlets making agreement with the Coke Company.


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Suggestion1. Proper knowledge should be given to the salesman about the promotional Scheme so that they can better understand the importance of promotional activities. 2. There should be proper regulation on time management for the distributor so, that distributor will open agency on time. 3. The distribution should be a within a proper interval, so that there is no shortage of products in the market. 4. There should be a regular meeting between distributor & company about the implementation of sales promotion. 5. Company should make open interactions for the distributor so that they feel that they are the part of organization & they will never hesitate to give promotional scheme to the outlets. 6. There should be assessment classes for the distributor so that paper work should be up-to-date & proper maintenance of accounting, because in many outlets I found that schemes is pending. 7. There should be dress code for the sales man & the driver. 8. There should be time schedule for the meeting between top level management & C.E. 9. There should be a location for a store house of ViSi Cooler in Cuttack which is not controlled by any distributor but directly controlled by company. 10. Fast repairing of VISI Cooler will gain the faith & goodwill of the retailer. 11. Company should give the facility to provide VISI Cooler outside the store so that the display will easily do and it is helpful for those stores where the space is a constraint.KIIT SCHOOL OF MANAGEMENT Page | 69

PepsiCo12. Company should provide racks to keep Pet bottles for display. 13. Retailers feedback should be taken about the consumer behavior about various brand. 14. The company should take some CSR( corporate social responsibility) program like providing road side dustbin which carry PEPSI logo that will increase the brand awareness. 15. . Effort should be given to break CCX monopoly to mix counter and to promote mix counter to PEPSI monopoly counters.


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CO CLUSIOThe aim of my project was to learn and observe about sales promotional strategy of PEPSI Company. I selected this organization because I have a deep interest to know various sales promotional strategies in FMCG Sector. My observation was that the demand of Pepsi-Cola is comparatively less than the demand of Thums Up .After giving through; it is revealed that the market share of Sprite is higher than 7Up. PEPSI should take immediate step to improve the standard of sales and services. Slice has a high demand in market in comparison to Maaza but supply of Slice is very low in peak season that should be taken care of. It revealed that PEPSI gives better scheme in Cuttack City as well as all over world. PEPSI has a wide product line in comparison to Coca-Cola Ltd. M.S. Dhoni is the brand ambassador of PepsiCo Ltd and Pepsi has targeted to young generation. So far this aim my findings are like this1) Out of all the outlets surveyed, it was found that, 41% of the outlets are coke exclusive, 20% of the outlets are Pepsi exclusive whereas 39% of the outlets are Mix counters. So it can be inferred that more number of outlets are having agreement with Coke Company. 2) It was found that 49% of the outlets were having Coke Visi, whereas only 30% of the outlets were having Pepsi Visi and rest 21% outlets were using their own chilling equipment. So we can say that Coke products are more visible at the counters. 21% of the outlets were having their own chilling equipment, so pepsi should target these outlets by providing them with a pepsi visi and as most of these are mix counters, pepsi could turn them into a Pepsi monopoly counter. This would help in increasing sales. 3) It was found that total filled RGB of coke products was 64% whereas it was only 34% in case of pepsi products. This figure could be increased by


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PepsiCoproper distribution of pepsi products so that adequate stock is maintained at the outlets. 4) The availability of pepsi pets at the outlet was found to be 54% at the time of survey whereas coke pet availability was found to be 46%. The reason for this is the heavy promotional scheme given on pepsi products. This shows that retailers always look for schemes. 5) The mineral water availability of both pepsi and coke stand at pepsi-10% & coke -12%. Rest 78% is accounted by local players. 6) In the best scheme category , pepsi is leading with 80% outlet revealing that the scheme provided by pepsi is the best. So pepsi has a clear edge over coke. 7) When we consider the best distributor service, then we can say that the retailers are satisfied with our service, but their suggestion is to adopt better sales promotional steps and develop the quality so that Pepsi can be the market leader. 8) If we consider the scheme that is appreciated by retailer, then we find that retailer appreciates two types of schemes i.e Under the Crown (UTC) & Refilling because in these two schemes are received by retailers at the point of purchase.


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BIBLIOGRAPHYKotler, Philip; Keller, Kevin Lane; Koshy, Abraham; Jha, Mithileshwar; Marketing Management, ew Delhi, Dorling Kindersley (India) Pvt. Ltd., 2007. Kothari, C.R., Research Methodology, ew Delhi, ew Age International (P) Limited., 2008. Websites -

www.pepsi.com www.pepsiindia.com www.pepsico.com

www.pepsigallary.com www.pepsiproductfact.com www.aquafina.comMAGAZI ES, JOUR ALS & EWS PAPERS

1. Business world. 2. Business Standards. 3. Economics Times.


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ANNEXURE


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Documents

my final report -pepsi.pdf