Ujjwal Final Report

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A

PROJECT REPORT

ON

SURVEY OF RETAILERS

&

CONSUMER OF SOFT DRINKS

Under Guidance of :

Mr.Rohit

Mr.Dhananjaya

PepsiCo.India Ltd

Adityapur,kandra Road

Jamshedpur

Submitted By:-

Ujjwal kumar

BBA (2009-12)

ICFAI UNVERSITY,JHARKHAND

NATIONAL COLLEGE, RANCHI

DURATION:- 31st

May to 23rd

July


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A

PROJECT REPORT

ON

SURVEY OF RETAILERS

&CONSUMER OF SOFT DRINKS

ICFAI UNIVERSITY JHARKHAND

NATIONAL COLLEGERANCHI

SUBMITED BY : UJJWAL KUMAR

ENROLLMENT NO:09JU10900106COURSE : BBA (2

ndSEM)

Presented To: Prof. Deepak Shukla

Duration:- 31st

May to 23rd

July


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PREFACE

Practical training I considered to be an essential part of all institution and

those who are aspiring for (BBA)this project is done in field of marketing.

As aspect of Management education which is receiving attending of the

evolution of the practical training is to be bring actual environment in touch of

Business Management , It is rigidly accepted that the theory widen ones thinking

viz.Concept of Marketing philosophies , but practice indicates the modern

marketing is used widely in selling a variety of products.

This project works has been done under the kind permission of distributorsof Jamshedpur.

I have done my summer training in Jamshedpur under the supervision of

the executives of SMV Beverage Pvt. Ltd.

This is Franchise owned bottling plant of PepsiCo India Limited. The bottling

plant is located at Adityapur Industrial Area. (Adityapur)

This report give,true picture of the sales of Pepsis product ,Since I have the

training in Jamshedpur, hence the result of study is particularly in Jamshedpur.


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DECLARATION

I, Ujjwal kumar here by declare that the project report written and submitted to

S.M.V.BEVERAGES PVT.LTD.by me is my own and its equal copy has not beenreproduced to any other institution published anywhere else.

I understand that such reproducing is liable for punishment in any way theInsitituion fit.

Place: Jamshedpur Ujjwal kumar

Date : 21/07/2010


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ACKNOWLEDGEMENT

There is always a sense of gratitude one expresses to others for the helpful and

needy service they render during all phases of life. I am doing this training with thehelp of different personalities. I wish to express my gratitude towards all of them.

It gives me immense pleasure to express my deep regards and sincere sense of

gratitude to Mr. Subroto Chakraborty (TDM) for his guidance throughout the

training I am undergoing. Thank you sir for your able and worthy guidance. I

would also like to thank Mr.Rohit,and Mr.Dhananjay for their support whichhelped me throughout the training I am undergoing.

I would also like to thank my teacher Prof. Deepak Shukla for steering my

confidence and capability for giving me insight into training by giving meexposure to the arena of competitive and real world.

Lastly I would like to thanks my parents and friends for their constant supportduring the training.


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CONTENT

EXECUTIVE SUMMARY

3C REPORT

HISTORY OF PEPSI

SMV BEVERAGES Ltd.

STRUCTURE OF ORGANIZATION

PRODUCT

PRODUCTION PROCESS

CUSTOMER

COMPETITOR

OBJECTIVE OF PROJECTMETHODOLOGY

QUESTTIONAIRE

PROBLEM FACED

MARKET SURVEY

DEALER SURVEY

ADVERTISEMENT

PEPSI PROMOTION

MARKET SHAREDATA COLLECTED

DATA ANALYSIS

FINDINGS

CONCLUSION

RECOMMENDATION

BIBLIOGRAPHY


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CONTENT

EXECUTIVE SUMMARY

3C REPORT

HISTORY OF PEPSI

SMV BEVERAGES Ltd. STRUCTURE OF ORGANIZATION

PRODUCT

PRODUCTION PROCESS

CUSTOMER

COMPETITOR

OBJECTIVE OF PROJECT

METHODOLOGY

QUESTTIONAIRE

PROBLEM FACED

MARKET SURVEY

DEALER SURVEY

ADVERTISEMENT

PEPSI PROMOTION

MARKET SHARE

DATA ANALYSIS

FINDINGSSWOT ANALYSIS

CONCLUSION

RECOMMENDATION

BIBLIOGRAPHY


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Executive Summary

This project is mainly based on the survey of different localities as why Pepsi is the

taste of of different customers, who are the competitors of pepsi and what is the

position of pepsi in the market. We found that Coca Cola is the only competitor of

pepsi. After 2002 pepsi os leading very far as compared to its competitor. Thedemand of pepsi is very high in the market. Cokes basic strength is its brand

name but pepsi by its new ideas in promoting its brand, good packaging of its

products and above all the taste makes it No. 1 in the market.

Analysis of pepsi and dealer are done to get the information about the basic idea

of the position of pepsi in comsumer and retailer.


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HISTORY OF PEPSICO

IN THE YEAR 1898, ONE OF CALEBS FORMULATION, KNOWN AS BRADSDRINK, A COMBINATION OF CARBONATED WATER, SUGAR VANILLA,

RARE OILS AND COLA NUTS IS RENAMED PEPSI COLA ON AUGUST 28,1898. PEPSI COLA RECEIVES ITS FIRST LOGO.

IN 1902, BR ADHAM APPLIES FOR A TRADEMARK WITH THE U.S. PATENT

OFFICE WASHINGTON D.C AND FORMS THE FIRST PEPSI COLA COMPANY

IN 1905, PEPSI COLAS FIRST BOTTLING FRANCHISES ARE ESTABLISHED INCHARLOTTE AND DURHAM, COMPETITIVE COLAS.

IN 1941, THE NEW YORK STOCK EXCHANGE TRADES PEPSIS STOCK FORTHE FIRST TIME. IN SUPPORT OF THE WAR EFFORT, PEPSI BOTTLE CROWNCOLOUR CHANGE TO RED WHITE AND BLUE.

IN 1960, YOUNG ADULTS BECOME THE TARGET CONSUMERS AND PEPSISADVERTISING KEEPS PACE WITH NOW ITS PEPSI, FOR THOSE WHO THINK

YOUNG.

IN 1970, PEPSI INTRODUCES THE INDUSTRYS FIRST TWO (2)-LITERSBOTTLES. PEPSI IS ALSO THE FIRST COMPANY TO RESPOND TO CONSUMERPREFERENCE WITH LIGHT WEIGHT, REOYCLABLE, PLASTIC BOTTLES.

IN 1984, PEPSI ADVERTISING TAKES A DRAMATICS TURN AS PEPSIBECOMES THE CHOICE OF A NEW GENERATION.

IN 1991,PEPSI INTRODUCES THE FIRST BEVERAGES BOTTLES CONTAINING

RECYCLED POLYETHYLENETEREPHY THALATE (OR PET) INTO THEMARKET PLACES. THE DEVELOPMENT MARKS THE FIRST TIME RECYCLEDPLASTIC IS USED IN DIRECT CONTACT WITH FOOD IN PACKAGING.

IN 1992, PEPSI COLA AND LIPTON TEA PARTNERSHIP IS FORMED. PEPSIWILL DISTRIBUT SINGLE SERVE LIPTON ORIGINAL AND LIPTON BRISKPRODUCTS.

IN 1994, PEPSI -FOOD INTERNATIONAL AND PEPSI -COLA INTERNATIONALMERGE, CREATING THE PEPSICO FOODS AND BEVERAGE COMPANY.

IN 1997, PEPSICO ANNOUNCES THAT IT WILL SPIN OFF ITS RESTAURANTDDIVISION TO FORM TRICON GLOBAL RESTAURANT, INC. INCLUDING

PIZZAHUT, TACO BELL AND KFC. IT WILL BE THE LARGEST RESTAURENTCOMPANY IN THE WORLD IN UNITS AND SECOND LARGEST IN SALES.

IN 1998, PEPSI CELEBRATES ITS 100 th ANNIVERSARY.


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IN 2006, PEPSICO ACQUIRED IZZE BEVERAGE COMPANYN NAKED JUICEAND STACYS PITA CHIP COMPANY IN THE US, STAR FOOD IN POLAND, AND

BLUEBIRD FOOD IN NEW ZELAND. IT HAS EXPANDED ITS PRESENCE IN THENON-CARBONATED DRINKS AS WELL AS SNACKS.

IN 2006, THE COMPANYS VOLUME GREW BY 5.5%, COMPARED WITH 2005 IN2007, THE COMPANY PLANS TO EXPAND ITS MARKET SHARE THROUGHFURTHER ACQUISITION AND JOINT VENTURES.


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SMV BEVERAGES LTD.S.M.V. Beverage Pvt. Ltd, Adityapur, (Jamshedpur) a medium sector enterprise,located amidst beautiful surroundings, on the TATA Kandra road in the AdityapurIndustrial Area, and producing PEPSI range of bottled soft drinks, viz. Pepsi, 7 Up,Mirinda, Teem, Mirinda Lemon, Mirinda Apple and Lehar Slice and had become ahousehold word in the Jharkhand State symbolizing achievement and advancementover the years.Steel City Beverages was established in 1967 and production commenced in March

1969. At the very outset the company installed state the art machines and technology,for the production and bottling of soft drinks. The bottling plat with a capacity of producebottle 220 per minute is totally automatic and also had a modern state of the art intermix machine for binging forth the right blend of flavors. The company continuous toadopt and innovate technology in keeping with its policy of constant qualityimprovements. With the advent Pepsi Food Limited for the production and sales ofPepsi range of soft drinks for Jharkhand.

The company symbolizes self reliant in technology and ranked as the Best bottlingcompany in the country in terms of Quality, Efficiency, Sale, Productivity and KRD. Till1998, it was under the guidance of its Chairperson, Smt. Kusum Kamani and the able

stewardship of its Managing Director, Shri. Nakul Kamani, the Co. has consistentlybagged on numerous occasions, awards for Quality Assurance and Productivity, in1993 it bagged top honors for being the best Quality conscious Plat amongst all PepsiBottling companies in India.In March 1999, Steel City Beverages Ltd. was taken over by Mr. S. K. Jaipuria from Mr.N.D. Kamani, along with Rushabh Marketing Ltd., a marketing unit. Mr. S.K. Jaipuriastarted running this plant very successfully. He was very much enthusiastic to increasethe production and sale and to capture the whole market of Jharkhand. He establishedanother plant in the name of SMV Beverages (Jsr) and increased the production fromthis new plant. The capacity of this new plant is 600 bottles per minute. Simultaneously,another marketing, company came up in the name of Hyderabad Marketing Company,

Which is catering the need of whole of Jharkhand state.

The Companys highly sophisticated plant and quality control laboratory along with thededication and enterprise of its employees is more than evenly matched by themanagements sense of understanding and compassion that has insured the companysprogress with every passing day.The company has a sale of more than 24 million bottles. It has maintained and nurtureda vast network of distribution for its product in Jharkhand and currently holds way overmore than 50% of the states consumer soft drinks market with an estimated growthannual turnover of over Rs. 10 corers. The company is currently in pursuit of thecoveted ISO9002, which it is confident of achieving and would hence become the first

food product factory in India to do so.


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STRUCTURE OF THE ORGANIZATION

For the every concern a structure is necessary on which the complete organizationshould be founded. To have a structure is not a choice of the organizer. The choice is

only of the form and pattern of the organization. Planned organizational structure maybe proved logical clear cut and streamlined in order to meet the present requirements.Otherwise it will merely be a makeshift arrangement and the management in rendereddifficult and ineffective because organizational structure affects everyone in theorganization. A good organizational structure facilitates efficient management and theoperation of enterprise and it encourages growth. It helps organization to reach itspredetermined goal.In order to make the organizational structure more effectible one structure that can meetthe demand of various factors namely environment, technology, size and people. SMVBeverages (Jsr) has duly considered these factors to build and efficient organizationstructure. As it is a medium scale enterprise and fully automatic, the manpower

requirement is less. Hence, like any contemporary company, it has adopted a flatstructure.

Following are the major features of the organizational structure of SMV Beverages Ltd.

y Clear lines of authority.

y Adequate delegation of authority.

y Minimum Managerial skill level.


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y Unity of Directors.

y Applications of ultimate responsibility.

y Span of control.

y Simplicity.

y Flexibility.

y Due consideration for top groups.

SMV Beverages (Jsr) has a management board headed by its unit manger & DirectorMr. P.S. Kumar. He is responsible for overall policies regarding managerial decisionsand all the executive functions. He looks after all the functional departments likeproductions, Sales, account, personnel & purchase. Every department is headed bytheir respective managers who sends reports to the unit manager and are responsibleto him in every sense of working.The Plant Manager is the head of the production department. He looks after productioni.e. bottling process, inspection, and storage of new materials and maintenance of theplant as a whole. He also Heads the quality control department through quality controlmanager.The controller of accounts heads the accounts department; under him there is a chiefaccountant. The purchase officer is in charge of all purchase activity of concern. PAC(Product availability Co-ordinator) is in charge of shipping department, coolers andPMX.Personnel department is headed by the personnel manager and looks after the functionof administration, industrial relation, legal jobs, security welfare etc.

The HMC Hyderabad Marketing Company In these two units, the Head of Sale andMarketing is in charge of all the marketing activities i.e. sales promotion, publicity,advertisement, market survey, and shipping. Though his main function is to have acontrol over the outlets distribution, Sales Manager is assisted by sales executive andsale supervisor.

PRODUCT


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PRODUCT IN JAMSHEDPUR

y PEPSI

y PEPSI DIET

y MIRINDA

y 7 UP

y MOUNTAIN DEW

y SLICE

y AQUAFINA

y TROPICANA TWISTER

y LEHAR SODA

y NIMBOOZ

PRODUCTION PROCESS

The bottling process at STEEL CITY BEVERAGES is automatic. The various units ofthis plant are:

WATER TREATMENT UNITWater in the STEEL CITY BEVERAGES LTD. Come from Sitarampur dam and isstored in a reservoir. Before ensuring production, this raw water is treated in the watertreatment plant.The process involved is known as coagulation process. Main chemicals,which are used, are ferrous Sulphate (FeSo4), calcium hydroxide (CaOH) and chlorine(Cl). Initially water is treated with all these chemicals in the treatment tank and becomesturbid. All impurities get settled at the base and remove the turbidity. Next it is sent to asand filter to remove the turbidity. Then it is sent to the CARBON TANK where all the


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microorganism and chlorine is removed the water so obtained is completely free fromany king of impurity and is ready to be used in further processing the maximumalkalinity is maintained until it is as much as 50 p.p.m.ROLL CONVEYORThis automatic operation machine takes the dirty empty bottles for washing. A person isrequired to put the empty bottles on the roller conveyor.CLEANING (THE BOTTLES) UNITUsed bottles returning from the market are stealthy. It is completely an outer process,which takes place within a machine. The machine has three compartments. Bottles for

washing placed on conveyor come inside the machine and get successive treatment.Bottles are treated with 4% caustic soda in the frost compartment at the temperature,100-115F. Next these are conveyed to the second compartment where bottles are againtreated with 2% caustic soda at the temperature 120F. In the third compartment bottlesare treated with sort ware. Time duration in the each compartment is 10 minutes.CONVEYOR CHAINThese are for the movement of sterilized empty, filled and crowned bottles.LIGHT SCREENTo check if any dirty part is unwashed in the sterilized bottles, which are coming throughconveyor chain? This checking is again crowning.SYRUP ROOM

Syrup room is situated on the first floor. Here syrup is prepared from filtered water,sugar and the concentrate. The room is well equipped with several tanks and filterpress. The first one is heating tank is which syrup is actually prepared. Calculatedamount of sugar along with concentrate and water is heated up to 850C. Thus asaturated solution is prepared. Next it is sent through a machine called filter press.FILLER MACHINE

Washed empty bottles enter into this through conveyor chain and then they are filledwith exact quantity of beverages.CROWNERThe filled bottles are crowned with metallic caps to protect the purity of content. Thenthe bottles are given the batch no., year, etc. with the help of laser machine.

Thus the whole process from washing to crowning is automatic. The filled bottles arelifted manually from conveyor and placed in crates. The bottling of beverages is carriedout at a rate of 240 bottles/min. The new bottling unit has been established in order topace the bottling process in the month of February. After establishing the nowproduction unit the rate per minute raised to 600. Before it was 440 bottles per minute.


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DISTRIBUTION CHANNEL OF SMVBEVERAGES LTD.


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Channel of distribution followed by the SMV Beverages Pvt. Ltd.

The channel of distribution is one of the essential activities, which is the responsibility ofthe sales department. The best alternative strategy is followed by the sales departmentof SMV Beverages private limited to distribute the processed soft drink so that productis available at right time and at right price. The company uses the following marketingdistribution channel: -

The product after processing is firstly supplied to the distributor or wholesalers from theplant or manufacturing unit. The whole area in around Ranchi is divided into the severalzones and routes. Thus the retailer cannot take the delivery directly from themanufacturing unit. They have to take it from their respective distributor in the particularzone of route. The distributors are selected on the basis of assurance given by themregarding the minimum sales, which they have targeted annually. Depending upon themarket each distributor in its initial stage has deposited some security money this

amount varies between the distributor-to-distributor and area-to-area. There is not anyfixed criterion for retailer or outlet but some time its selection is dome on the basis ofsales of caret per day. There is no direct relationship between the retailer and thecompany.There are lots many of exclusive outlet which is given more preference in order to meetproduct available. Most of the retailer are beetle shop, restaurant, grocery shop, STDbooth, Medicine shops etc. who are having the stall for the sales soft drinks. Theseretailers have to give the assurance to the concerning distributor for better sales and thetime of thanking delivery. They have deposited the security for the empty carets withspecified retailer purchasing price. The distributors at first have to seek the permissionof the sales department for the number of cases of soft drinks required by them. After

getting the proper authority from the sales department the distributor then sent theirdelivery through route vehicles to the respective outlets that so ever have paid therequisite sum of money either by cash or draft and deliver the filled carats and get backthe empty carats.

Manufacturing

Unit

Distributor or

Whole seller

Retailer or

Outlet

End Users


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Decisions with respect to distribution channel focus on making the productavailable in adequate quantities at places where customers are normally expected toshop for them to satisfy their needs. Depending on the nature of the product,marketing management decides to put into place an exclusive, selective or intensivenetwork of distribution, while selecting the appropriate dealers or wholesalers.

y Direct Distribution:


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o Delivery of post mix cylinders & handling of key accounts: the keyaccounts are different wholesalers, restaurants and hotels like Pizza Hut,KFC, Metro which serve as a place for key sale. These are known asnational key accounts and are very important in term of competition.

o Export Parties

y Indirect Distribution:o Through base market distributorso Through outstation distribution

Before delivering the product some certain guiding principles are followed for theassessment of distributors capacity:

o Applicant must have 20 to 25 vehicles (depending on the area)o Applicant must have 20,000 cases of empty bottleso Applicant must deposit Rs. 1,00,000 as a security

This is usually done through taking over key revenue areas. If the distributor does notachieve its sales target, the distribution is taken back and an addition of new distributoris done. Therefore Pepsis supply is low supply uncertainty. Some of its supply source

capabilities are:

y Less breakdowns

y High quality

y Flexible supply capacity

y Mature production process

CUSTOMER

In Tier 1, 2 and 3 cities in India, 29% of Indian consumers report consuming carbonated

beverages/soft drinks during a fixed time of the day suggesting consumption has become aroutine part of their day, with most consumption taking place during the 'afternoon to evening'

time period. Not surprisingly, consumption is highest in Tier I cities such as Mumbai, Delhi,Kolkata, Chennai, Hyderabad and Bangalore. The level of consumption is seen to increase with


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rising household incomes (with the exception of the highest income level) while decreasing withage.

The Indian soft drinks market is not under any regulation. Prevention of Food adulteration act

1954 does not include soft drinks. None of the BIS standards that existed before August 2003had any guidelines or set criteria for the residue levels of pesticides in the soft drinks. But

different lie agencies have set standards for the residue levels of pesticides. The EuropeanEconomic Community (EEC) sets the maximum admissible concentration of individual

pesticides and related products in drinking water at 0.1 parts per billion to ensure that the toxicity

is not dangerous to human beings. For a few pesticides like aldrin, dieldin and heptachlorepoxide the admissible limit is even more stringent, i.e., 0.03 parts per billion.

He is the person who is selling the same type of product in the market.The marketing concept

states that to be successful, a company must provide greater customer value and satisfaction thanits competitors do.

COMPETITOR

Pepsi has a tough competition with Coca Cola while it faces a little competition with the localproducers like RC Cola, Shandi Cola etc. The local producers hardly affect the sales of Pepsi in

the market.


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There are different types of competitor in the market. Some of them in which our product lies arediscussed below:

Close Vs Distant Competitor:

Pepsi and Coke are close competitors. It means that both have direct competition in the market,their products are close substitutes for one another. Both the products can influence the market

share of one another through effective strategies made to cope up with their competitors.

Pepsi cola and Nestle juice are distant competitors of one another. It means that their products

satisfy the same want but they are in indirect competition with one another.

Strong Vs Weak:

Coca Cola and Pepsi are strong competitors. Pepsi is the market leader and Coca Cola is itscompetitor. The Pepsi makes defense strategies so that it can maintain its position in the market.

While Coca Cola is a challenger and it makes attack strategies so that it can become the marketleader.

Pepsi and Shandi Cola are weak competitors. Pepsi is the market leader and Shandi Cola is the

follower. Pepsi is not in direct competition with the Shandi Cola. It means that Shandi Cola haslittle effect on the sales of Pepsi.

Pepsi Cola is situated in an industry that is dominated by two competitors, Coca-Cola and of

course themselves. Although Pepsi and Coke basically go after all consumers who purchase softdrink beverages Coca-Cola targets its products at the head of household.

This is evident in many of the ad campaigns such as Always Coca - Cola which refers to the

traditional beverage heritige of its product. They also reinforce this in the name Coca-ColaClassic which is inferring to the older consumer. This name reflects an image of value,

reliabilty, and old time values. Pepsi Cola throughout its 100 years of existence has developedmany strengths. One of the strengths that has developed Pepsi into such a large corporation is a

strong franchise system.

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

time is the largest snack company in the world. Probably high on the list of strengths is Pepsisbeverage line up. Pepsi has four soft drinks in the top ten beverages in the world. These brands

are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the #1 tea inthe United States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana,

Starbucks, Aquafina and a license agreement with Ocean Spray juices. Pepsi Cola like anycompany has weaknesses. Ironically, the one strength that has been credited for most of its

success in the past has now become a weakness for Pepsi. This former strength is the franchisesystem. The franchise system in Pepsi Corporate view has become a liability. Pepsi in todays

market must be able to act as one instead of several separate units. The franchise system hasbecome 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 unwillingto 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 capitalexpenditures to keep up with Coca-Cola who is a firm believer in reinvesting into their

infrastructure (Coca Cola at present time does not operate a franchise bottling system). Anotherweakness that Pepsi is inferior is in the fountain soft drink division. This has always been a

problem for Pepsi because of their ownership in fast food restaurants. Coca Cola has for yearsbeen in the top locations for fountain beverages because they simply tell the account Pepsi is


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their competition because of their ownership in Taco Bell, Pizza Hut, KFC, and many others. Asmentioned earlier Pepsi has tried to eleiviate this problem by spinning off their interest in fast

food restaurants but at present time are still guilty by association to many of the large fountainaccounts. The franchise system has also effected fountain sales due to the fact franchisees are not

willing to by expensive fountain equipment to placed in accounts mainly because the profitmargin is so low and could take years to recoup their investment. Pepsi also has a weakness in

the international beverage market. Unfortunately for Pepsi they were a Johnny Come Latelyinto this arena. Pepsi has tried to enter this market by trying to do in three years what took Coke

50 years to do. This area will take years for Pepsi to mature simply due to Cokes dominance in

the international market and the strong ties that Coke has developed with these markets and theirgovernments. Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsicustomers buy their products because of taste, price, packaging, promotional factors and of a

wide variety of brands. Pepsi customers also buy their products due to the high accessibility ofPepsi brands. Pepsi products are distributed to many outlets. For example, supermarkets where

Pepsi buys large shelf area and display areas so the customer can find them easier, Conveniencestores, gas stations, delis, restaurants, movie theaters and almost and other conceivable spot.

Pepsi has a competitive advantage over Coke because of the image it portrays. Pepsi promotesitself as the choice of the New Generation. Pepsi gets this advantage by implementing such

large marketing projects like Project Globe.

OBJECTIVE

Whatever we have learned in our courseware can only be more effective when we know how

to apply them in real practice. Application of theoretical learning to the practical exposure leads

to further learning. Here the main objective of internship is to apply the theories and skills

learned, practically in an organization, and be open to learn more.

The objective behind doing (SIP) is to get first Corporate exposure where we can apply our

theoretical knowledge, learned in our courseware till now ,and get a closure look to the Work

Cultureand learn Corporate Ethics. This is supposed to be beneficial for us in future when we

will start working with an organization , after completion of our course.


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As an intern we can develop knowledge , competencies and real time corporate experience,

which directly make an impact on setting our career goal.

Beside working on the project during (SIP) .we also get opportunity to link with the employees

of the organization. There are numerous things which helped us in improving our educational ,

professional and social network to set the things done in a right and systematic manner.We

come to know how to make long term relation with others.

To know the consumer preferences.

To know the percentage share of pepsis cooling equipments. To know the market share of pepsis product.

To know the distribution methods adopted by the organization.

METHODOLOGY

The different methodologies that I used to collect data from different places are given under:-

I have done market survey for collection of primary data.

I use net to collect the information of PepsiCo.

I also got secondary data from PepsiCo official.


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I also know various things from shopkeeper.

I also got information from the customer.

Commencement of Fieldwork :

The fieldwork include the process of getting the questionnaires filled up and also getting all the

relevant information regarding the visibility of Pepsi for future business decisions.

My fieldworks included extensive coverage of the following areas :-

Adityapur

Nit Road Rit Dandli basti Shere Punjab chowk S .Type Main road

Pan dukan chowk Thana road Dindli Basti Majhi Tola Saldis Basti Ashiyana Road Nishant Vihar Kalpanapuri Road Near Shiva Narshing Home Idtr Complex

My data collection process include in-debth interviews with the dealers and consumers getting asmuch as relevant information as could be.

Method of study

I have divided my all study into three phases which are :

Outlet survey

Product survey

Stock keeping Survey


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QUESTIONNAIRE

QUESTIONNAIRE FOR RETAILERS:

Name of the shop/outlet: ..................................................................

Address/Location : ....................... ................................. ...............

Type of outlet : ............................ ................................. .

(a) General Store (b) Pan Shop

(c) Sweet Shop (d) Lassi /Juice Shop


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(e) Dhaba /Canteen (f) Others

l .Q. Which brand of soft drinks you deal in ?

(a) Pepsi (b) Coca-cola

(c) Both (d) Other

2.Q. Which brand of cola provides you better facility ?

(a) Pepsi (b) Coca-cola (c) Both

3.Q. How many crates of Pepsi & Coca-Cola you sell/day ?

(a) 0-1 crates (b) 1-2 crates

(c) 2-3 crates (d) 3 & above

4.Q. Which companys signage you have in your outlet ?

(a) Pepsi (b) Coca-Cola

(c) Both (d) No signage

5.Q. Which companys visi - cooler you have in your outlet?

(a) Pepsi (b) Coca-Cola (c) both(d) Own (e) Mixed

6.Q.What kind of promotional activities affect sale mostly?

(a) Free bottle scheme (b) Prize

(c) Discount Crates

7.Q Contact person & contact number for further queries?

.

8Q. How many VG coolers of pepsi & Coke in your outlet?Pepsi Coke Own

9Q. Service frequency of the Van in your outlets of Pepsi & Coke?..

10Q. Which company, Pepsi or Coke gives more schemes?


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PROBLEM FACED

1. We have done our market survey only in the Peak season.

2. 51 days are very less to know the each and every aspect of marketing activities.

3. Respondents covered by us could not give the accurate result it only providesome idea.


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MARKET SURVEYOne of the most effective tools of the market research technique is Market survey. Wecan know the actual facts and figures regarding. The product through market survey.

Any business organisation has to sell its product in the market. The largest share ofmarket a company has the better its profit margin will be. To increase the market sharethe company should come out with a product which best satisfies the customer need.

To find out the customer need and market demand the company should survey themarket and the process is knows as market survey.Based on this survey the company goes for following function.1. Market Development Function.2. Product Development Function.The Report on over all Marketing activities in Ranchi is based on two different types ofsurvey:-

y Retailer Survey.The retailer survey as the word indicates is the survey of every retailers of soft drink inthe area. For my practical purpose the dealer only includes the authorized dealerappointed by the company, but it also includes the retailer- big or small grocery shops,

stationary, restaurant, betel shop etc. beside these, the various exclusive stalls andsales of pantry cars also included in it. In a nutshell, by dealer we mean, those who aredealing in soft drink in some way or the other, in large our study, directly or indirectly.

Thus our study includes all such dealers. EDS includes various aspects:

y Route-wise no. of dealers

y Crate strength

y Per day sales

y Chilling aid

y Advertisement

y

Nature of outletsy Scheme and pay-offs etc.

While conducting the survey of dealers, a format was provided to me, which ask to fillup by the dealer so that it meets the requirements of the organization. The dealersurvey as mentioned earlier includes a variety of dealers.


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DEALER SURVEY

since Retailers/Dealers are supposed to be very close to the consumer. They can knowthe choice and taste of a consumer very well.The following important information wecome to know by Dealer/ Retailer Survey.

Market position of Pepsi

Distribution effectiveness.

Price effectiveness.

Service of chilling equipments

Schemes Availability.

In Ranchi 3 me have survey all parts of this small town

In Ranchi 3 area Karamtoli to Booty More and on the national highway Booty more toChutupalu.

We have surveyed about 120 outlets/Shops in jamshedpur.

1. MARKET POSITION OF PEPSI.

From our survey we find that Pepsi faces a tough competition from its rivalCompany Coca-Cola. Thumps-Up a product of the Coca-Cola Company gives a stiffcompetition to Pepsi. We find that Thumps-up gives a tough competition to Pepsi Cola.

Sprite gives a tough competition to Mountain Dew. But Dew is also is saleablethan sprite.

Mirinda and slice is also more Saleable than Maaza. Because of the better taste slice is

more demanded in the market.

The Customers of slice includes the females and middle aged persons; who justwant to taste the Mango Juice.

Mirinda is also more demanded by the female consumers.

On the basis of the survey we come to know that it is due to the sweetness ofPepsi which makes its market power a weaker one. On the other hand Thumps-uphardness gives it more value at the market.

2. DISTRIBUTION EFFECTIVENESS :-

We find that the summer season is the Peak season for the Cold Drinks. That's

why a special case should be taken for the distribution of Pepsi products. Theseincludes that the supply should be regular.

Irregular supply effects the marketing of Pepsi. The Retailers says that it is uptothen for the selling of a product. Whatever product is available to them they will sell thatitem. if Coca cola- supply is regular they can sell the Cola-Cola product if the Pepsisupply is not regular and good. That's why the Retailer wants the regular supply andbest service from the company during the peak reason.


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"From our survey we found that the supply of Pepsi products is regular. Althoughin some areas like. Imlichowk dandlibasti saldis basti the supply is not regular becauseof less number of vehicals. The Retailers, however, manages to get Pepsi from otherother side dealer.

We find that during the peak season sometimes supply problem occurs. Butaccording to my thinking the main reason of irregular supply is shortage of pepsiproducts in distributor godown. However, Retailers also know that the supply sometimeshampers during the peak season.

PRICE EFFECTIVENESS :-From our survey with regard to price we come to know that the increase in price

of 200ml (Pepsi) does effect the selling of Pepsi. However this increase in price doesnot effect too much to the selling of Pepsi Products. However, the price is same as thatof the Coca-Cola products. Hence we find that the increase in price affects themarketing of both the products i.e. Pepsi and Coca-Cola.

4. SERVICE OF CHILLING EQUIPMENT OF PEPSI :-

The service of Chilling equipment of Pepsi is not satisfactory to all theusers/Retailers/Shopkeeper.The mechanic of the company is not regular at the placewhere required. Retailer/Dealers/Shopkeepers complains about the less cooling of

Pepsi freeze. But they satisfied from the cooling equipments of Pepsi.

5. SCHEME AVAILABILITY :-We find that the dealers guts the schemes regularly. These Schemes lead to the

more selling of Pepsi products. The dealers Say that schemes provided by theCompany, encourages them to sell the Pepsi products more and more, however,sometimes. The retailers cannot know about the schemes because the schemes are ofvery short period.That's why they want to know about. The exact information and timing of Schemes. Sothat they can avail these scheme.


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MARKET SHARE OF VISI COOLER

Chilling equipment is an important factor for selling soft & cold drinks.Without freeze &VISI cooler the sale of soft drinks is not possible. Every dealer has an chillingequipment. In some cases company also provide chilling equipment. Companywhatever provide chilling equipment it is totally different from general freeze. In thiscase the freeze outsider has advertise the product e.g Pepsi Dew 7up slice etc. for e.gin a market one of the dealer has good sales of soft drinks. He has 4ct , 3ct , 4ct varioustype or flavour soft drinks. His visi cooler has not sufficient space to chilled the allproduct at a time. He tell the problem to the company and request that to provide a visicooler. Companies employee come to the dealer and analyze that it is necessary toprovide a visi cooler or not. Then company provides the visi cooler to the dealer.

Market share of visi cooler

SL.NO Company Est Mark. Share

1 Pepsi 54.50%

2 CocaCola 45.50%

This is one of the most important supports for the dealers which help them to keep the

product chilled and freash.

PEPSI

54%

COCA COLA

46%

Market Share Of Visi cooler


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ADVERTISING

Advertising is any paid form of non-personal mass communication throughvarious media to present and promote product, services and ideas etc. by anidentified sponsor.

PepsiCo has advertised its products through many different ways and media.

Through TV we have seen different advertisement of its products such as Pepsi orDew. PepsiCo also advertise its products by targeting those favourable televisionprograms, like sports, series and also PepsiCo uses some events like PepsifyKarogey? to promote its products.

Through newspapers like Jung and Dawn, PepsiCo has advertised a wide rangeof products its offers to its customers. And also through Posters a message hasbeen sent to lot of people to be aware of the products which PepsiCo offers.


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PEPSI PROMOTION

Promotion is a key element of marketing program and is concerned with

effectively and efficiently communicating the decisions of marketing strategy, to

favourably influence target customers perceptions to facilitate exchange between

the marketer and the customer that may satisfy the objective of both customer and

the company.

A Companys promotional efforts are the only controllable means to create

awareness among publics about itself, the products and services it offers, their

features and influence their attitudes favourably.

OVERALL MARKET SHARE

1.COCA-COLA 43.9%


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2. PEPSI COLA 30.9%

3. CADBURY SCHWEPPES 14.5%

BREAKDOWN OF MARKET SHARE

1. COCA-COLA CLASSIC 20.6%

2. PEPSI COLA 14.5%

3. DIET COKE 8.5%

4. MOUNTAIN DEW 6.3%

5. SPRITE 6.2%

6. DIET PEPSI 5.9%

7. 7-UP 2.3%

8. CAFFIENE FREE DIET COKE 1.8%

9. CAFFIENE FREE DIET PEPSI 1.0%

10. DR. PEPPER 0.6%

FOUNTAIN SALES (FOUNTAIN SALES ARE CREDITED FOR 27% OF SODA SALES)

1. COCA-COLA 65%

2. PEPSI COLA 23%.

DATA ANALYSIS

Market share of Pepsi & Coke at Adityapur inJamshedpur.

S. NO. PEPSI COKE

1. 66.62 % 33.38%


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Flavour Wise Comparison of Soft drinks at

Adityapur in Jamshedpur.

.

THUMS UP 20%

PEPSI 20%MOUNTAIN DEW 8 %

SPRITE 13%

MIRINDA 10%

7 UP 6%

SLICE 12 %

OTHERS 10 %

67%

33%

Pepsi Coke

20%

20%

8%13%10%

6%

11%

12%

Thums up

Pepsi

Mountain Dew

Sprite

Mirinda

7 Up

Others

Slice


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Overall Comparison of Pepsi & Coke atAdityapur in Jamshedpur.

PEPSI 67 %

COKE 33 %

67%

33%

Pepsi Coke


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Comparison of Pepsi & Coke in Glass Bottles atAdityapur in Jamshedpur.

PEPSI 67 %

COKE 33 %

Comparison of Pepsi & Coke in Pet Bottles atAdityapur in Jamshedpur.

PEPSI 66 %COKE 34 %

67%

33%Pepsi

Coke


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Comparison of Pepsi & Coke in Empty Bottles atAdityapur in Jamshedpur.

PEPSI 58 %

COKE 42 %

58%

42%Pepsi

Coke


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Comparison of Pepsi & Coke in VG ChillingEquipment at Adityapur in Jamshedpur.

PEPSI 48 %

COKE 52 %

48%

52%

Pepsi

Coke


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Comparison of Pepsi & Coke in OYC Equipmentat Adityapur in Jamshedpur.

PEPSI 8%

COKE 11 %

OWN 81 %

Comparison of Pepsi & Coke in ServiceFrequency at Adityapur in Jamshedpur.

PEPSI 58%

COKE 42 %

8%11%

81%

Pepsi

Coke

Own

58%

42%

Pepsi

Coke


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Comparison of Pepsi & Coke in Schemes at Adityapur inJamshedpur.

PEPSI 76 %

COKE 24 %

FINDINGS

FINDINGS

During (SIP) in PepsiCo pvt.Ltd. (jamshedpur) there was various things to know about and learn

which is not less than any achievement. Apart from market survey I learned to keep Patience

and to communicate effectively with others.

Apart from these, I got an opportunity to work with good Employees of PepsiCo, a multinational

company which off course added value to my learning. I also came to know about the culture

and hierarchy and working procedures of PepsiCo which itself is an achievement. But I became

confident in this area after doing summer internship program (SIP).

Satisfaction level is also good.

The dealers want more promotional scheme, gifts and quality service.

The dealers want a soft strategy for replacement of lickage bottles.

As per I have visited to dealers outlets, I found that most of the dealers are selling only

Pepsis products.

Some dealers are happy with Pepsi products. They got the products by the company at

the time due to good distribution channel.

76%

24%

Pepsi

Coke


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CONCLUSION

Market share of Pepsi is increased because of effective distribution channel anddemand of the consumers. Since in Jamshedpur and its surrounding area heatdescends more as compared to other parts of the states so obviously demand is more

in this region. The marketing activities of SMV beverages are good but there is a needof some more promotional activities. Besides this there is certain more conclusionswhich are as follows:-

1. Pepsi has got far better position and giving the tough competition to itscompetitor coke.

2. Almost all the age group of the consumer like Pepsi and its different flavors.

3. Mirinda is the market leader in orange flavour while Thumps-up is the leader insprit flavour and 7up is the leader in cloudy lemon flavour.

4. In pet bottles segment Pepsi is dominating Pepsi has acquired almost 70-75%share in this segment.

5. 200ml of almost all the flavor has got a significant position in the market and are inhigh demand.

6. The young generation is very crazy about the Pepsi and its various productsbecause of its sponsharship of different cricket tournament and bollywood starslike Ranbir kapoor, Dhooni Deepika padukoan .

7. Pepsi "YEH PYAAS HAI BADI" and Yeh hai Youngistaan Meri jaan are

excellent.


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RECOMMENDATION

Pepsi-Cola should improve the design of the package. As it is advertised as the

choice of new generation the design must be looked young and fresh. So the

colour should be more sharp and attractive.

Distributors should given attention towards the retailers in rural areas. As from

the survey I found that majority of the retailers in these areas preferred to sell

Pepsis products inadequate in number and on time.

I found that there is high demand for soft drinks products during the summer

season so by launching Mobile PepsiCo shop we can attract new customers

especially the college students.

As PepsiCo has always targeted the youth so new posters including the recent

cricketers endorsed for Pepsi AD can be distributed among the retailers to attract

the customer.

From a very long time PepsiCo products are coming with the same type of carat.

So there can be change in carats model as these are also means of ads for a retail

outlets.


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BIBLIOGRAPHY

SITES VISITED

www.PepsiCo.com

www.Pepsizone.com

www.Pepsiindia.com

www.google.com


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SWOT ANALYSIS

STRENGTHS OF PEPSICO:

Excellent brand image.

Having highest market share of 54% in pet bottles.

Effective and stronger base in India than its competitor like coke.

Its having very efficient distribution system. E.g. there are seven distributors inJamshedpur.

Having large number of celebrity endorsed.

Introducing new flavors time to time.

Having broader product line and outstanding reputation.

WEAKNESS OF PEPSICO:

Not able to keep the retailers satisfied in term of service, scheme and offer.

Not having good provision for expiry and fusty goods.

Most part of the city is not looked as the main city that should be taken care because inthose areas the service is negligible.

Not having definite criteria for providing fridge, dash boards, glow signs and paintings tothe retailer.

Not providing support material to the retailer.

Shortage of some fast moving product during the season.

OPPORTUNITIES FOR PEPSICO:

PepsiCo can explore its distribution network in interior area.

Consumers are showing more interests in PepsiCo products.

Focus on most important customer trend- convenience.


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Sufficient stock of goods during season that can fulfill the demand of customers.

Improve service in some major areas where the distributor is not available.

Promotional activities provide it an edge over the competitors.

THREATS FOR PEPSICO:

Competitive price may affect its profit margins.

Competitors products already available in the market with similar schemes.

Some potential dealers are not well satisfied with the services which directly affect the saleof products.

Earlier religious guru asking their followers not to consume soft drinks but after he asked toconsume colorless drinks.

Pesticide controversy taking away the consumer.

Documents

Ujjwal Final Report