pepsi

CHAPTER 1

INTODUCTION

1.1 INTRODUCTION:

Company history

PepsiCo, Inc., established in 1965 through the merger of Pepsi-Cola and Frito-Lay is a world

leader in convenient foods and beverages. The company consists of Frito-Lay North America,

PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America.

PepsiCo brands are available in nearly 200 countries and territories. Its success is the result of

superior products, high standards of performance, distinctive competitive strategies and the high

level of integrity of its employees.

PepsiCo offers product choices to meet a broad variety of needs and preference from fun-for-you

items to product choices that contribute to healthier lifestyles. The company's principal

businesses include:

Frito-Lay snacks

Pepsi-Cola beverages

Gatorade sports drinks

Tropicana juices

Quaker Foods

PepsiCo’s mission is “To be the world's premier consumer products company focused on

convenient foods and beverages. We seek to produce healthy 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.”

The company has two major divisions that are operational in India. The first division is the

traditional Beverages Division. The second division, and the subject matter of this report, is the

Snack Food Division

The Beverages Division

The company has 37 bottling plants in India, and one company-owned concentrate plant. Pepsi

keeps its concentrate formula, a secret. The main products are:-

Pepsi cola diet Pepsi 7 up Mirinda

Mountain dew slice Tropicana Aquafina

Leher Everess Soda, Dukes Lemonade and Mangola

There is a subdivision of the Beverages division which is under the name of Tropicana Products,

Inc., parent company headquartered in Bradenton, Florida, and is a division of PepsiCo. In India,

the company is headquartered in Gurgaon, Haryana.

Keeping with the core Pepsi thrust toward youth, Tropicana is dedicated to producing pure

premium juices essential for an active and youthful lifestyle. The juices of the commonly

available fruits produced, packaged and marketed by Tropicana contain naturally occurring

components to promote good health.

With a 50-plus year history of consistent growth Tropicana today stands as the world’s only

global citrus juice business!

1.2 OBJECTIVE OF THE STUDY:

The main purpose of this study is determining the different strategies that are adopted by

the companies.

The strategies will be evaluated to see which the best amongst them is and which are

most effective.

Acceptability of Pepsi products by the consumers and marketers.

Identifying the competitors and positioning Pepsi in comparison to them.

To find out marketing strategy of Pepsi.

To analyze the SWOT analysis of Pepsi.

To know about customer value of Pepsi.

To know about customer perception towards Pepsi brand image

To know about customer satisfaction

Impact of market strategy on customer

CHAPTER 2

CONCEPTUAL DATA

2.1 MISSION/ VISION

Business mission of Pepsi is to be the best and biggest seller of carbonated soft drinks. They are

working for providing a high quality refresher product to passionate crowd. They have a refined

plant by which we manufacture the product according to the health standards. They have a

number of brands loyal and have full attraction for the quality conscious people to consume our

product. They have triggered themselves towards growth and high profitability. They are coping

with the technological advancement by installing the new machinery by which we makes a

frequent flow of our supply to the customer.

2.2 MARKETING STRATEGIES ADOPTED BY PEPSI:

Extremely high visibility: enormous resources allocated for advertising

Positioned as a product or the youth: targets “Generation Next”

Unlike global trends, half of the distribution of Pepsi in India done by Company Owned

Bottling Operations (COBOs)

Very low brand loyalty among consumers, so sales depend on timely product availability

Recent entry into rural markets.

2.3 FOUR P`S OF PEPSI:

1. PRODUCT:

WIDTH:

The Pepsi beverage division has the following product lines –

1. Soft Drinks

2. Juices ( Tropicana)

3. Mineral Water

LENGTH:

Soft Drink Juices Mineral Water

Pepsi Tropicana Aquafina

Diet Pepsi Gatorade Mirinda

7 Up Mountain Dew

DEPTH:

We will focus on the soft drink section here. The Pepsi cola comes in various sizes ranging from

300ml, 500 ml and 2 litres. In addition Pepsi Cola is also available in 330ml cans.

CONSISTENCY:

The different products in the soft drink section are all closely related. They share the same

distribution channel and are supplied in the same manner. They also have a similar production

process and the end users are by and large homogenous.

Pepsi cola has a light, crisp and refreshing taste. It is the perfect drink for the modern

“Generation Next” people. The product comes in 300ml glass bottles,500 ml pet bottles and in 2

liters. The product targets the upwardly mobile with its trendy design and is a premium product

from the house of Pepsi. It has a shelf life of 6 months.

2. PRICE:

Pepsi’s pricing strategy is largely formulated by keeping its rivals, Coca-Cola, pricing strategy in

mind. The reverse is also true. Both the products are not differentiable and are near perfect

substitutes. Another important factor here is that the sales are volume driven; hence price needs

to be kept at an appropriate level. Listed below are the prices of the variants -

1. 300 ml is for Rs 9.

2. 500 ml is for Rs 18

3. 2 litter is for Rs 43

4. 330 ml can for Rs 20

3. PROMOTION:

The soft drinks market in the country relies heavily on promotion to sell its products. The

presence of close competition makes it necessary for both Pepsi and Coca-Cola to hard sell their

products. The leading products offered by both the companies are very similar. The companies

try aggressively to build loyalties for their respective brands by playing on emotions and

aspirations of its consumers. They have roped in cricket players and film stars to attract and

create interest in their products. Pepsi especially has been advertising using a number of

cricketers to associate Pepsi Cola with their success.

A Pepsi spokesperson says promotions have worked very well for the company and have helped

reinforce the brand personality.

The `Pepsi Cool Maal’ scheme in June-July 1998 targeted at school children met with a

phenomenal response because the premia comprised items that school kids needed and ``yet had

a lot of attitude''. The previous year, the company ran a `Pepsi Stuff' promotion that offered

young people a range of offers, both free and discounted, on cinema tickets, apparel, music and

so on.

TV Ads – Pepsi has been bombarding the Indian customers with a periodical onslaught of

creative advertisements aimed at the youth of the country. Early on, Pepsi identified three broad

platforms cricket, movies and music. It has roped in the biggest stars from the film industry and

the cricketing fraternity. People endorsing Pepsi include bollywood superstars Amitabh Bacchan

& Shah Rukh Khan with a host of other actors. Fardeen Khan, Saif Ali Khan, Priety Zinta,

Kareena Kapoor among the more popular ones.

It has roped in most of the members of the national cricket team. From Superstar Sachin

Tendulkar to Rahul Dravid, Sorav Ganguly, Yuvraj Singh, Mohammed Kaif etc. Pepsi

started hiring cricket stars very early and set a trend in the market. It also brought

international music stars like Michael Jackson, Ricky Martin, Deep Purple and Def

Lepparamong others to the country

Pepsi began advertising early with its very effective ‘A-Ha’ campaign. A-Ha created a new

idiom. The tag line which was built into a song brought instant attention the product. Having

Remo Fernades sing “yehi hai right choice baby…a-ha” caught the attention of the youth. Then

came Akshay Kumar with the “I wanna be mast” campaign. Pepsi chose its ambassadors in a

manner which ensured curiosity and then lasting interest in the youth of the country. Pepsi has

over the years come up with catchy slogans like Generation Next, Yeh Dil Maange More, The

choice of a new generation etc.

Pepsi also associates itself with cricket which is by far the most popular activity, sport, mode of

entertainment in the country. It even launched a new brand by the name of ‘Pepsi Blue” during

the last cricket world cup to cash on the fact that the color of the players’ uniform is blue.. In an

earlier episode of the same event where Pepsi had lost out to rival Coca-Cola in gaining the

official sponsorship, Pepsi came out with an aggressive and creative campaign, where it

positioned itself as the “unofficial drink” as opposed to coke’s strategy. It signed up a number of

national as well as international stars, mouthing the tag line “nothing official about it”. The

company has also time and again sponsored a number of cricket tournaments. It recently came up

with the ‘Toss ka Boss’ contest which saw fans join the two captains on the field for the coin

toss.

Pepsi also came out with a series of ads poking fun at rival Coke and its brand ambassadors.

This was done with a fair degree of success as it had everybody from the road side vendor to the

BBC correspondents talk about it. Another recent campaign which created controversy was the

‘OYE BUBBLY’ campaign. It used a voice over which bore similarity to the voice of Coke’s

brand ambassador Virender Sehwag. Pepsi has created quite a stir with the ‘OYE BUBBLY’

campaign. It shot a music video with Amitabh Bacchan, Sachin Tendulkar and other players

from the cricket team. It released an audio cassette and CD with the song on it. This campaign in

particular has been very successful thanks to the catchy tune and ads featuring Shah Rukh Khan.

Internet – Pepsi signed up with Yahoo! India and launched a Pepsi zone on yahoo -

http://www.pepsizone.yahoo.co.in. The zone was aimed at the younger lot of the net surfers. A

number of features like contests, chat rooms, games, download etc. attracted net users

4. PLACE:

How does bottle of PEPSI reach you…..

To bring the product to the consumer by proper distribution management to:

http://www.pepsizone.yahoo.co.in/

MANUFACTURER

DISTRIBUTOR

RETAILER

CONSUMER

For distribution purpose pepsi uses 2 level distribution channel which contain two intermediaries

between the bottling factory and the final consumer.

The Company does its selling by using company owned distributors or franchisee owned

distributors. Worldwide Pepsi relies on franchisee but in India it uses both company owned and

franchise owned operations.

Pepsi uses two methodologies for distribution in India

1. Company owned distributors

2. Franchise owned

FRANCHISEE OWNED:- This is like outsourcing wherein the company out sources its

distributing related work to another party. Company has less control owner the distributor. All

the investments like vehicles, Employees salaries etc are made by the distributor who in return

gets a margin ( around 18-20%).Advantages of using this scheme is that the fixed investments

and other distribution related expenses of the company are less. The disadvantages are that the

company has lesser control over the distribution process.This method is followed in delhi.

COMPANY OWNED:- Here the company owns all the vehicles, the employees are on

company roles. The advantages of suh a process are that the company has direct control over the

entire distribution process, it also gives the company higher flexibility. The disadvantages of

such a process are that it involves huge investments.This method is followed in punjab

Pepsi is currently available with the other Pepsi products at:

Convenience Stores

Restaurants

Grocers

Entertainment Centers

Offices and Institutions

Eateries

Educational Institutions

Hotels

2.4 MARKETING ENVIRONMENT ANALYSIS:

DEMOGRAPHIC

Demographic changes and development poses some threats and opportunities. Pepsi Cola

International keeps close tracks of demographic trends and development in the market.

Increasing migration to cities provides opportunity for Pepsi to increase its production, adjust its

prices, accordingly. People are now becoming more aware of calories and are more conscious

about their health. Pepsi begin this trend by offering diet version for low calories conscious

consumers. So Pepsi International keeps a very close eye on the demographic changes,

occurring in Pakistan and then plans its marketing strategies according to these developments.

ECONOMIC

Pepsi is a luxury product. It's not like "Rolls Royce", but it is also not like "flour". People can

drink water too instead of Pepsi. But rising income always affects the company. When people

have more disposable income, Pepsi sells more.

It is also an desire product. It has no planned purchase. Normally, we do not go out,

especially to drink Pepsi. Very often, we see Pepsi sign board, a khokha, and decide to buy

Pepsi. In Pakistan, Pepsi's' sales were rising, along with other things that the company did, like,

sales promotion, advertisement and distribution, which was very effective.

POLITICAL ENVIRONMENT

Developments in political environment also affect company's strategies. Higher percentage

of sales tax and excise duty has been imposed on the company's product, which affects the

selling price, and ultimately the buying. It affects packaging. Due to current sales structure,

manufacturing bigger packs become unviable.

Current duty structure has affected Pepsi’s take home packages, i.e. 1.5 liter bottle, 2.25 liter

pet and non-returnable packages. 250 ml is the most viable package under current condition.

CULTURAL ENVIRONMENT

Although Pepsi is an international brand, but it is very closely aligned with Pakistan cultural

environment. Pepsi, in Pakistan is no doubt No.1 beverage brand. Yet it is also recognized as a

"National drink". Pepsi's has related its ads and promotion, to nationalism, like sponsoring

Dil Dil Pakistan,

Pepsi with Imran Khan,

Pepsi with Wasim and Waqar, etc.

This reflects that Pepsi is a part of Pakistan.

Changes in life style of consumer affect the Company's product. For example, in a depressed

society like in Pakistan, when people go out for picnic, and during leisure time. They enjoy

themselves by cooking themselves, and very often take NR Pepsi with them. 80% consumption

of Pepsi is, outside consumption.

As youth is the target segment of Pepsi, so their changing life styles also provide

opportunities for the company to alter its strategies. Young people are more trendy and

fashionable, and their behavior changes from time to time. Pepsi's slogan

"Choice of a new generation",

Has appealed the Pakistani youth, allot, and the company sales were increased considerably.

Then, they shifted to new slogan, "GENERATION NEXT" and now one more step ahead with

"ASK FOR MORE".

Fast urbanization also provides opportunities to the company. People migrating to cities, are

influenced by the cultural change, and they tend to buy Pepsi more as people in urban areas are

more aware about soft drinks.

2.5 PORTER FIVE FORCE MODEL

Barriers to entry:

The soft drinks industry requires a huge investment if one aspires to gain a considerable market

share. The investment would require huge sums of money to setup manufacturing plants, bottling

plants and as we know a massive advertising budget.

As an example Parle, which was the market leader at one point, did not have the ability to invest

large sums of money in a small period of time and was eventually bought over by -Pepsi rival,

coca-cola.

Pepsi in India owns most of its bottling plants – COBOs. Pepsi has about 15 COBOs and plans to

expand further. Pepsi has over the years invested about 600 crores and plans new investments of

another 400 crores.

That is the scale of operations in the cola industry, making it very difficult for any new players to

enter the market. Another factor that makes entry difficult is the presence of Coca Cola. The two

cola giants among themselves control most of the market, leaving no room for anyone else.

The gestation period, due to the huge initial investments, is pretty long. Pepsi, which started

operations in India in 1989, broke even in 1997.

Bargaining Power of Suppliers:

There are around 100 franchise owned bottling operations.

Bargaining Power of Buyers:

Buyers by and large do not have much power in the cola market. The number of buyers is too

large for them to exert any influence or control over pricing or any other decisions. Even though

there are very low switching costs the buyers do not wield much power.

The presence of a large competitor, however keeps the price level in check.

Rivalry:

The rivalry between coke and Pepsi is too well documented. It has stretched from the start of the

latter company till date. It has been witnessed in every continent, country every market and yes

the courts. There are a number of factors other than the obvious one – similar product. These are

enlisted below

High fixed costs – this forces the two companies to produce near capacity. This high level

of production leads to a fight over the market share.

Perishable product – the companies need to sell their high quantities of produce rather

quickly.

Low switching costs – the switching cost for a customer is pretty low, since substitutes

are similarly priced.

Low product differentiation – other than a select few loyal customers, most customers do

not find any difference between coke and Pepsi.

Threat to substitutes:

Pepsi cola as a product has a number of substitutes and is under constant threat of losing its

market share. The low product differentiation between its biggest competitor does not help.

Another factor is the pricing which is the pretty much the same for most of its substitutes. There

are other threats from outside the industry too. The age-old nimbu paani and lassi will always

pose a threat to any manufactured beverage. Even if these are not sold in the market place on as

large a scale, these are substitutes prepared in most consumers’ homes for their consumption.

2.6 CONSUMER BUYING DECISION PROCESS:

Hosts of factors play an important role in a buyer’s decision-making process. This process lets

him/her screen the different options available and take a final decision.

The 4 P’s (Product, Price, Promotion & Place) or the Marketing Mix of a product plays a

significant role in this intricate process. The final decision is made based on the marketing inputs

and the various psychological inputs. Every product is perceived in a certain way or manner. The

consumers’ perception of the product is a vital ingredient and the companies have to ensure that

they portray a suitable and strategic image.

The psychological factors (Culture, Attitude, Learning & Perception) also play a critical role in

the decision making process, but a company can do little to influence these factors. However, if

the suitable market/segment is targeted while positioning the product the company can generate

positive response from the marketplace.

2.7 SWOT ANALYSIS:

STRENGTHS:-

High brand awareness : - Pepsi is the world’s most famous no 2 multibillion dollar brand and

Pepsi is the largest FMCG brand in India.

Large number of distributors : - The Company has both franchise owned and company owned

operations in India. Pepsi in Delhi alone has more than 100 distributors. Delhi is totally

franchise operations whereas Punjab now is totally company owned

Wide product offering : - Pepsi is available in glass bottles, aluminum cans and PET bottles

for home consumption. Fountains also dispense them in disposable containers. Also they

provide a large number of flavors.

High accessibility : - Pepsi products are available in shops in the most elite of malls and at the

same time in the smallest of shops in the back lanes of the poor localities.

Large advertising budget : - Pepsi has the luxury to spend huge amounts on advertising in a

year. This enormous ad budget allows Pepsi to reinforce their products with reminder

advertising and promotions. This large budget also allows Pepsi to introduce new products

and very quickly make the consumer become aware of their new products

Wise investments : - . Pepsi also has had the good fortune of making very wise investments.

Some of the best investments have been in their acquiring several large fast food restaurants.

They have also made wise investments in snack food companies like Frito Lay, which at

present time is the largest snack company in the world.

WEAKNESSES:-

Powerful franchisee : - Ironically, the one strength that has been credited for most of its

success in the past has now become a weakness for Pepsi. This former strength is the

franchise system. The franchise system in Pepsi Corporate view has become a liability.

Pepsi in today’s market must be able to act as one instead of several separate units. The

franchise system has become a hurdle to Pepsi because many of these franchises have

become very strong and will not be dictated by PepsiCo on how to handle their

operations. Some of these franchises are unwilling to support certain Pepsi products and

at times produce their own private label products that are in direct competition with Pepsi

products. Secondly the franchisees are not willing to make capital expenditures to keep

up with Coca-Cola who is a firm believer in reinvesting into their infrastructure.

Inferior in fountain soft drinks division: -The franchise system has affected fountain sales

due to the fact franchisees are not willing to by expensive fountain equipment mainly

because the profit margin is so low and could take years to recoup their investment.

OPPORTUNITY

Per caps in India is 8 oz. vis a vis 868 oz. in USA : - The consumption of Pepsi in

India is still regarded as luxury. An orthodox Indian would still prefer a cup of tea or

coffee to a bottle of Pepsi. So in the event Pepsi can manage to change their mindsets

it would tap a huge untapped customer base.

Cutting costs : - since there is tremendous scope for increasing the sales volume, this

also signifies potential to reduce costs per bottle and make the product more

affordable.

Seasonality : - Pepsi is perceived to be a summer drink and max sales happens in

summer months. During winters an average Indian would still prefer a cup of hot tea

to Pepsi.

THREATS

Controversies:- Demonstrations across India were organized by the Research Foundation

for Science, Technology and Ecology (RFSTE). Activists wanted the firms to leave India

because they said their plants depleted ground water the soft drinks giant strenuously

denied. Also, the pesticide controversy was a big threat to the company.

Low brand loyalty : - If a consumer walks into a shop and he is offered a coke instead of a

Pepsi he would in all likelihood accept it. This basically means that the company needs to

be present everywhere every time and that too chilled otherwise it will result in lost sale

Low cost and large number of substitutes :-Traditional Indian families would still prefer a

glass of lassi or nimbu pani in summers and a cup of tea or coffee in winters as compared

to PEPSI

Risk of losing market share :- Coke is a very strong opponent and gives immense

competition to the Pepsi so there is a constant threat of loosing market share since both

the products are very similar and there is almost no brand loyalty present amongst

consumers

2.8 THE COLA WARS

No two companies could be more alike, or more different! Both have been selling products to

quench thirst for over a hundred years and both are now global brands. Their products moved

through the world’s most pervasive networks.

Distribution: Pepsi has taken the more capital intensive route of owning and running its own

bottling factories alongside those of its franchisees whereas Coke operates only through FOBOs

(Franchise Owned Bottling Operations). Pepsi in India has a more organized streamlined channel

of distribution whereas Coca Cola is unorganized in its distribution channel. Pepsi has over a

hundred distributors (both company owned and franchise owned) in Delhi alone whereas Coke

has much fewer distributors and relies more heavily on wholesellers directly for their sales and

distribution.

Brand Synchronisation: Despite being a global brand, Pepsi has built its success on meeting the

Indian consumers’ needs. It has synchronized the brand with localized events and traditions. For

example, in Delhi, it linked its brand with Holi, offering sachets of colour with Pepsi Cola. In

Chennai, it offered free bottles with orders of idlis.

Whereas Coke, instead of creating a bond with its customers through small events, it chose to

associate itself with national and international mega events like the Cricket World Cup, 1996 and

the Olympics, 1996.

Diversification: PepsiCo has increasingly diversified into snacks and restaurants while Coca

Cola has focused only on soft drinks. PepsiCo snack operation is in Frito-Lay and its restaurant

business includes Pizza Hut, Taco Bell and KFC. All of Coke’s profits come from beverages

whereas PepsiCo depends on drinks for 41% of its income.

CHAPTER 3

ANALYSIS

1. Gender

GENDER RESPONDENT PERCENTAGEMALE 12 60%FEMALE 8 40%

GENDER0

20

40

60

80

100

120

Column1FEMALE

2. Age

a. Less than 15b. 16-30c. 30-45d. More than 45

Age RESPONDENT PERCENTAGELess than 15 6 30%16-30 9 45%30-45 3 15%More than 45 2 10%

age

less than 1516-3030-45more than 45

3. How many Glasses of Cold drink you drink in a week? a. more than1 b. 1-3 c. 4-8 d. more than 8How many glasses you drink in a week

RESPONDENT PERCENTAGE

More than 1 8 40%1-3 6 30%

4-8 4 20%More than 8 2 10%

How many glasses of cold drink you drink in a week?

more than 11 to 34 to 8more than 8

4. Why do you prefer Pepsi? a. Refreshment b. Thirst c. FunWhy do you prefer pepsi RESPONDENT PERCENTAGERefreshment 12 60%Thirst 4 20%fun 4 20%

why do u prefer pepsi?

refreshmentthirstfun

5. What is the reason to believe in Pepsi as a brand? a. Quality b. Cost c. Advertisement d. Brand name

What is the reason to believe in Pepsi as a brand


Quality 6 30%Cost 2 10%

Advertisement 4 20%Brand name 8 40%

reason to believe in pepsi as a brand

qualitycostadvertisementbrand name

6. According to you, how do you feel Pepsi as a cold drink?

a. Very good b. Good c. Neither d. Bad e. Very bad

How to you feel Pepsi as a cold drink


Very good 6 30%Good 8 25%

Neither 5 15%Bad 1 5%Very bad 0 0%

how do you feel pepsi as a cold drink

very goodgoodneitherbadvery bad

7. Are advertisements of Pepsi better than its competitors? a. Strongly Agree b. Agree c. Can’t say d. Disagree e. Strongly disagree

Advertisement of Pepsi is better than its competitors?


Strongly agree 12 60%Agree 5 25%Can`t say 0 0%

Disagree 2 10%Very bad 1 5%

advertisement of pepsi is better than its competitors?

strongly agreeagreecan`t saydisagreevery bad

8. What do you correlate Pepsi as a brand with? a. Taste b. Slogan c. Easy availability d. Boring and uncool e. Costly f. Advertisements g. Fun h. Celebrity endorsement

What do you correlate pepsi as a brand with


Taste 2 10%Slogan 6 30%Easy availability 5 25%

Costly 3 15%Advertisement 3 15%Fun 1 5%Celebrity endorsement 0 0%

why do you correlate pepsi as a brand

tastesloganeasy availabilitycostlyadvertisementfuncelebrity endrosement

INTERPRETATION:

Collection of date based on male 60% and female 40%.

Many of the people drink more than 1 glass of Pepsi in a week and only 10% of the

people drink more than 8 glasses in a week.

After analysis I conclude that majority of the people drink Pepsi for refreshment that is

60% of the people and 205 for thirst, 20% for fun.

Many of the people believe Pepsi as a brand because of brand name.

30% of the people feel Pepsi as a cold drink it’s very good and 5% feels it’s bad.

Majority of the people that means 60% are strongly agree that advertisement of the Pepsi

is better than its competitors.

30% of the people feel that slogan and the easy availability of the Pepsi is the correlation

CHAPTER 4

CONCLUSION, RECOMMENDATION, SUGGESTION.

4.1 CONCLUSION:

After completion of the project and the analysis of the study I came to conclude that

after launching the promotion there was drastic percentage jump in sales initially but

gradually the percentage jump decreased and there isn’t much impact on sales.

After doing analysis of Pepsi I came to conclude that people are very much aware about

the promotions especially the kids and people prefer more of Pepsi and Pepsi is very

popular in India.

Thus I conclude that the industries have pampered consumers by giving discounts and

free bies and hence consumers now a days don't buy a product until and unless they are

given some discounts. So the industries should not over do the promotions.

Critics argue that promotions simply prepone the purchase and don't add any

incremental value to it. The sales may pick up during the offer, but there is a loss of

sale in the following month, which means the people who buy the goods in July simply

preponed their purchase due to the offer". Also, over promoted products often leave

customers asking for more. Thus promotions have actually spoilt the habits of

consumers. Thus, promotion is a very attractive means to keep the consumers glued to

its product but then the industry shouldn't over do it. The effect of promotions is for a

shot period of time.

QUALITY

The first reason is of quality, obviously in this competitive age and an intelligent

consumer in front of you no company can afford to ignore the vital issue of quality.

PRICE

Why doing analysis 15% consumers complained about the price but from the general

tendency, it was seen that when a consumer felt thirsty and was in a company of

friends, price took a back seat and the consumers opted for their favorite brand.

SYSTEM

The distribution system of the company is very efficient. In fact every day the trips are

made why the mini trucks, three wheelers caring crates are replaced at the retail outlets

according to the demand.

LOCAL ADVERTISEMENT

The company has created brand awareness among the consumer through constant

advertising. The retail outlets in the various part of the city display various advertising

themes, bill-boards are painted with eyes catching advertisements, moreover, the mini

trucks caring the crates of soft drink are beautifully painted with various brands and a

part from the local news paper carry the advertising captions periodically.

REDDRESSING CONSUMER

COMPLAINTS; the company has established a system that keeps track of consumer

complaints. It has well set-up network which contacts retailers, consumers, records and

their views about the products, the quality, availability of soft drink in time, price etc.

4.2 RECOMMENDATIONS:

PepsiCo should Promote their all products like Alvio, Gatorade and Quaker Oats

PepsiCo should promote their product in Rural area also as Coca-cola is doing.

PepsiCo should expand the Brand Image of Pepsi (People are only correlating it

with youth- Youngistan)

As Coca- Cola shows its logo at the end of every advertisement of its each

product/Brands, so Pepsi should also show its logo in its each Brands advertisement

PepsiCo also should go equally to other medium of advertisement like pepper, hording

and internet.

PepsiCo should also continuous participate in Sporting events.

PepsiCo can take part in IPL also

PepsiCo should also focus on Green marketing like other Companies doing like- Idea,

Aircel etc.

PepsiCo mostly Brand ambassador came from bollywood so they should focus on

Sporting celebrity like from cricket, football and hockey

People are not that much aware about some products of PepsiCo so they should focus on

it.

The regular user of Pepsi is very low. So Pepsi have to convert those customer which are

aware about Pepsi but not using it regularly, so try to make them brand loyal

Buying priority of most customers is refreshment so they should try to convert them in

brand preference.

They should more target on Child and Sports men

They should show Quality and Trust base in their advertisement.

PepsiCo should focus on their brand ambassador they are changing it continues so they

should take care of it

4.3 SUGGESTION:

Company should emphasis on selling per bottles for 200ml & 300ml at a

lower difference price; it is portable and convenient to carry.

Consumer preference change according to availability, therefore the company

should provide their brands at maximum outlets at possible.

Company should take care of cleanliness of the bottles rusted crown and

maintain the quality of the product especially at the time of packaging

Company should get the schemes printed on the labels of the bottles/products

as well as on the free items provided with soft drink so that consumer gets

aware about the schemes and not cheated by the retailers

Company should inform each and every outlet about the schemes before time

or on time and check them. Weather they are providing them to consumer in

the proper manner.

Company should conduct survey quarterly to see weather consumers are

satisfied with the product and services.

Schemes have large impact on consumer preference therefore a company

should launch different and attractive promotional schemes frequently.

Company should encourage to the consumers to purchase more and softer

drinks so as to develop the taste and sales.

CHAPTER 5

ANNEXURE

5.1 BIBLIOGRAPHY:

5.2 QUESTIONNAIRE:

1.Gender

a. Maleb. Female

2. Agea. Less than 15b. 16-30c. 30-45d. More than 45

3. How many Glasses of Cold drink you drink in a week? a. more than1 b. 1-3 c. 4-8 d. more than 8

4. Why do you prefer Pepsi? a. Refreshment b. Thirst c. Fun

5. What is the reason to believe in Pepsi as a brand? a. Quality b. Cost c. Advertisement d. Brand name

6. According to you, how do you feel Pepsi as a cold drink? a. Very good b. Good c. Neither d. Bad e. Very bad

7. Are advertisements of Pepsi better than its competitors? a. Strongly Agree b. Agree c. Can’t say d. Disagree e. Strongly disagree

8. What do you correlate Pepsi as a brand with? a. Taste b. Slogan c. Easy availability d. Boring and uncool e. Costly f. Advertisements g. Fun h. Celebrity endorsement

Documents

pepsi