competitve analysis of pepsi and coca cola

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IMIS(2012-14) SUMMER INTERNSHIP REPORT

INTRODUCTION

PepsiCo organization initiated this project to assess the competitor activity between Pepsi and Coca

Cola in the present market. The main motive of this project is to identify the competitors various

activity such as retailer margin, promotional activity/ schemes, acceptability and service of their

leading competitors in the Bhubaneswar market.

The project methodology involved carrying out the preliminary research to gain insight into the

Bhubaneswar market, sub segment, current trends, growth and competitors. Through analyzing the

requirement and designing questionnaire. Collating & analyzing data and identifying leads that

qualifying for an offering and formulating recommendation for S.M.V. BEVERAGES Jagatpur,

Cuttack.

In the findings researchers got that Pepsi company is one of the best soft drink company,

because it maintain the quality, taste and also the Company is maintain good relationship with

retailers and they are also distributing their product to their retailers when they want and the

Company also provide them in time.

Theory is important, because it enhances our understanding of business phenomena and helps

managers to think about what they should do. Summer training or internship training program

provides opportunities to apply this theory into the real business practice.

In the present scenario of competitive marketing, every business institution requires to prepare

strategies for efficiently utilizing their available resources and environmental opportunities. At this

stage of my learning process I also feel needs for knowing different business strategies that a business

organization follows. In this training period I got opportunities to study on some marketing strategies

of PepsiCo. And in this report I am going to explain some of those strategies which I had applied in

practical during my summer training program.

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KEY AREAS

The key area of my summer training was Ready base & Order base delivery system in terms of

satisfaction of shopkeeper at Khandgiri (Bhubaneswar).

The company had divided his retail outlets on the basis of area wise and character wise. Each of the

division is having mainly three types of outlets.

AREA WISE: - The area of my summer training was Khandgiri and according to the company

the whole training area was divided into three parts.

INNER CIRCLE: - These are the main selling point of a company or heart of a city.

In inner circle I mainly consider those selling point or retailers shops which come under the main

market area.

OUTER CIRCLE: - These areas are adjacent to the main market area, which is a mixture

of residential areas and market areas. In these areas I mainly talk about those retailers shops, which

are place d in the residential areas and quite away from the main market...

OUTSKIRTS: - These areas are quite away from the main city and the main market, or the

interior areas of the towns.

CHARACTER WISE: - Again there is a division of outlets on the basis of characters

(Type of work done by the retailers) and there are again three types of outlets.

CONVENIENCE OUTLET: - These types of outlets include general stores, beetle shops,

stationary shop, medical shop and such type of other shops.

GROCERY OUTLETS: - These types of outlets include grocery stores which indulge in selling

of foods and related things used in the home.

EATERY: - It includes restaurants, fast food joints etc.

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PEPSICO COMPANY PROFILE

Mission and Vision

At PepsiCo, I believe being a responsible corporate citizen is not only the right thing to do, but the

right thing to do for our business.

Mission

Our mission is to be the world's premier consumer products company focused on convenient foods

and beverages. I seek to produce financial rewards to investors as I provide opportunities for growth

and enrichment to our employees, our business partners and the communities in which I operate.

And in everything I do, I strive for honesty, fairness and integrity.

Vision

"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.

Guiding Principles

We must always strive to:

Care for customers, consumers and the world we live in

Sell only products we can be proud of

Speak with truth and candor

Balance short term and long term

Win with diversity and inclusion

Respect others and succeed together

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Type: Public (NYSE: PEP)

Founded: 1965

Headquarters: New York, USA

Key people: Indra Nooyi, Chairman, President & CEO

Industry: Food and beverage

Products:

Pepsi

Pepsi max

Diet pepsi

Atom Pepsi

Tropicana Products

Slice

7up

Mountain Dew

Mirinda

Revenue: US$ 66.504 billion (2011)

Operating Income: US$ 9.633 billion (2011)

Net Income; US$6.42 billion (2011)

Total assets: US$ 72.882 billion (2011)

Total equity; US$ 20.899 billion (2011)

Employees : 297,000 (2011)

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PEPSICO IN INDIA

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-

owned Punjab Agro Industrial Corporation ( PAIC) and Voltas India Limited. This joint

venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed;

PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly

Pepsi was banned from import in India, in 1970, for having refused to release the list of its

ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly

afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with

huge multinational companies." Indeed, some argue that PepsiCo and The Coca- Cola Company

have "been major targets in part because they are well-known foreign companies that draw plenty

of attention." PepsiCo has grown to become one of the country’s leading food and beverage

companies. One of the largest multinational investors in the country, PepsiCo has established

a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S. $1 billion since the company was

established in the country. PepsiCo provides direct and indirect employment to 185,000 people

including suppliers and distributors.

PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including Pepsi Foods Ltd, Frito-

Lay India, and Tropicana Beverages Company. The company, through its subsidiaries

manufactures, bottles, and exports fruit juices and carbonated beverages and packaged snacks such

as Lays, Ruffles, Fritos, and Cheetos. PepsiCo India is based in Gurgaon, India.

Pepsi Co nourishes consumers with arrange of products from treats to healthy eats that deliver joy

as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic

refreshment beverages Pepsi, 7 UP, Miranda and Mountain Dew, in addition to low calorie options

such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic

sports drinks- Gatorade, Tropicana100% fruit juices, and juice based drinks - Tropicana Nectars,

Tropicana Twister, Slice, and the new brand Nimbooz by 7up with real lemon juice. Local brands-

Lehar Evervess Soda,

Dukes Lemonade and Mangola add to the diverse range of brands.

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In snacks segment-PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty

snack market and all Frito Lay products are free of trans- fat and MSG. It manufactures

Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure

and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted

snack options enhance the healthful choices available to consumers. Frito Lay’s core products,

Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce

saturated fats and all of its products contain voluntary nutritional labeling on their packets. The

group has built an expansive beverage and foods business. To support its operations, PepsiCo has

43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In

addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants.

Pepsi Co’s business is based on its sustainability vision of making tomorrow better than

today. PepsiCo’s commitment to living by this vision every day is visible in its contribution

to the country, consumers and farmers. Pepsi Co India's agri-partnerships with farmers help

farmer s across the country grow and earn more.

Pepsi Co's involvement in Indian agriculture stems from its vision of creating a cost-

effective, localized agri-base in India by lever aging farmers access to world class agricultural

practices. PepsiCo India worked with farmers and State Governments to improve agri sustainability,

crop diversification and raise farmer incomes. Pepsi Co helped transform the lives of thousands of

farmers by helping them refine their farming techniques and raise far m productivity, and

customized solutions to suit specific geographies and locations.

The most ambitious project is a joint program, launched in 1989, between PepsiCo India,

the Punjab Agriculture University (PAU) in Ludhiana and

Punjab Agro Industries Corporation (PAI C) in Chandigarh. The program focuses on evolving

agricultural practices to help Punjab farmers produce internationally competitive products. Over

the last five years, PepsiCo has also collaborated with the Thapar Institute of Technology to

develop a high quality potato seed program.

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PepsiCo was a pioneer in the concept of contract farming under which the company transfers

agricultural best practices and technology and procures the

Produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acre research and

demonstration far m in Punjab to conduct far m trials of new varieties of tomato, potato and other

crops. The program, which includes seed production, has successfully evaluated the following

crops,

Several varieties of basmati rice more than 200 varieties and hybrids of chilli

25 varieties and hybrids of corn

More than 60 varieties of peanut

More than 100 varieties and hybrids of tomato.

Additionally, the development of new tomato varieties has helped increase total annual.

Production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields

Additionally, the development of new tomato varieties has helped increase total annual production

of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have more than tripled

from 16 tons to 54 tons per hectare.

Under the program, 6 high-qualities, high- yield potato varieties have also been introduced to

Indian farmers. These new potato seeds have helped to increase far m income and enabled PepsiCo

to procure world class chip-grade potatoes for its Frito Lay snacks division. The company has

partnered with more than 10,000 farmers working in over 10,000 acres across Punjab, U.P.,

Karnataka, Jharkhand West Bengal, Kashmir and Maharashtra for the supply of potatoes. PepsiCo

India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie up with the

United Breweries Group.

PepsiCo India’s technical team also implemented a high quality seed program to deliver early

generation and disease free seeds to farmers.

Tropicana- Tropicana product is an American based company, and was founded in

1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by PepsiCo,

Inc. Pepsi offers the wide variety of products to meet the choice and preference from fun for your

items to the products choices that contribute to healthier life style.

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KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS PVT. LTD.

PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani 'Nimbooz by 7Up'

PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus paani 'Nimbooz by 7Up'. The

product, with real lemon juice, no fizz and no artificial flavors, will be available in three packaging

formats of 200 ml returnable glass bottles, 350 ml PET and 200 ml tetra packs, priced at INR10,

INR 15 and INR 10 respectively.

PepsiCo India Holdings Pvt. Ltd. t o Launch Lemon Drink

PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the lemon drinks

category and has plans to introduce a product under 7up brand ahead of the summer

season. The new product would be less carbonated and is targeted at the mass market for on-the-

move consumers.

Headquarter: New York, U.S.

Area served: Worldwide.

Industry type: Food and non alcoholic beverages.

Products:

Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice, Tropicana, Atom Pepsi,

Nimbooz juice, Aquafina.

Key person : Miss Indra Krishnamurthy Nooyi (president), and (CEO).

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S.M.V. BEVERAGES Pvt. Ltd.

SMV Beverages Pvt. Ltd. Cuttack is a franchise owned bottling plant (FOBO) is located on

the near NH-6 Jagatpur bank of Mahanadi producing Pepsi range of bottled soft drinks, viz. Pepsi,

Mrinda, 7up, Mountain Dew, Slice and Soda and it has now become a house hold word in the state

Odisha. Year of establishment 1969. It was taken over by Mr. S.K. Jaipuria in March1999. He was

very much enthusiastic to increase the production and sales and to nature the whole market of

Odisha. S.K. Jaipuria holds the top position but the overall policies regarding managerial decision

and all the executive function are performed and look after by the Director Mr.H.K.PATRA .He has

been given the power and authority to manage the company affairs. Therefore, Mr. H. K. PATRA

can be recognized as the Chief Executive. The Director look after all the functional department like

production, sales, accounts, personnel, purchase etc. Every department sends report directly to the

director and are responsible to him in sense of working. In spite of this all department are in direct

control of the director. Plant superintendent is the head of the production department. He look after

production, that is bottling process, inspection, storage of new materials and though there is a

quality control manager. The controller of accounts heads the accounts department. Manager

(Personal & Administration) looks after the function of administration, industrial relation , legal

jogs security, welfare etc. At the very start company installed state of art machines and technology

for the production and bottling of soft drink. The bottling plant with a capacity of 220 bottles per

minutes was totally automatic and also had a modern State of art inter mix machine for bringing

forth the right blend of flavors. The company constitutes to adopt innovative technology in keeping

with its policy of constant entered into an agreement with Pepsi food limited for the production and

sales of soft drinks for the people of Odisha. Right now there is only one bottling plant of Pepsi in

Odisha and it cater the need of all the Pepsi products in Odisha. Entire state is divided into

territories and one territory development officer controls each territory.

ENVIRONMENT SCANNING:

The process by which organization monitors their relevant environment to identify

opportunities and threats affecting their business are known as environment scanning. The external

environment in which S.M.V. Beverages Pvt. Ltd. exists consists of a bewildering variety of

factors. These factors (may also be termed as

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influences) are events, trends, issues, and expectation of different interested groups. These

factors are explained below.

Events are important and specific occurrences taking place in different environment sectors

Trends are the general tendencies or the courses of action along which events takes

place

Issues are the current concern that arises in response to events and trends.

Expectations are the demands made by interested groups in the light of their concern for

issues

By monitoring the environment though environmental scanning, the S.M.V. BEVERAGES Pvt.

Ltd. considers the impact of the different events, trends, issues, and expectation on its strategic

management process. Since the environment facing organization is complex and its scanning is

absolutely essential, strategist has to deal cautiously with the process of environmental

scanning is collected systematically. Information related to markets and customers, the changes in

legislation and regulations which have a direct impact on an organization’s activities, government

policy statements pertaining to S.M.V. BEVERAGES Pvt. Ltd. business and industry and soon,

could be collected continuously to monitor changes and take the relevant factors into account

S.M.V. BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with specific

environmental issues from time to time. Such studies may be conducted, for instance, when S.M.V.

BEVERAGES Pvt. Ltd. has to undertake special projects, evaluate existing strategies, or devise new

strategies. Changes due to unforeseen development may also be investigated with regard to their

impact on the organization. Today S.M.V. Beverages Pvt. Ltd. stands as a proud monument and

strides forth towards progress and prosperity for the fulfillment of the ideas of its revered

founder.

Pepsi production process:

Any cold drinks (soft drinks) generally contains

Water

Sugar

Flavors or fruit pulp

Chemicals

CO2 gas (in carbonated soft drinks)

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The below four ingredients are added with the first ingredient i.e. water and cold drink is prepared. Here

in S.M.V. Beverages Pvt. Ltd. Jagatpur also the same ingredients are used to prepare Pepsi and its

other brands. All these ingredients are added at different stages by different processes. The diagram

in the next page represents the flow or sequence of steps involved in S.M.V. Beverages Pvt. Ltd.

Jagatpur for manufacturing of Pepsi products. Pepsi products are available in different SKUs (stock

keeping units) or packs, e.g. glass bottle, pet bottle, metal can, tetra pack etc. the preparation of

main liquid or drink is same but the machines and equipments used for filling in different SKUs

are different.

During my visit to S.M.V. Beverages Pvt. Ltd. Jagatpur, I saw

Water treatment plant, where water is purified.

Bottle washing plant, where used glass bottles are washed.

Syrup room, where syrup is prepared from sugar.

Bottle filling plant, where bottles are filled with the final product.

Acid room, where caustic soda is kept, which is used for cleaning the equipments and

pipelines after every batch of production.

Yard for keeping empty bottles and ware houses for storing the filled bottles.

The brief introduction of each Plant is given bellow:

Water treatment plant:

Water in S.M.V. Beverages Pvt. Ltd. Jagatpur, is coming from the Mahanadi River. It is stored in a

reservoir. This raw water is being treated in the water treatment plant, before the production process

starts. Coagulation process is used here for this purpose. Main chemicals used are ferrous sulphate

(FeSO4), calcium hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these

chemicals in the treatment tank and becomes turbid. All the impurities get settled at the base and

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remove the turbidity. Then, it is sent to the carbon tank where all the microorganisms and chlorines

are removed. The water so obtained is completely free from any kind of impurities and used

in further processing. The maximum alkalinity maintained until as much as 50 ppm.

Bottle washing plant:

Used bottles returning from the market are stealthy. Before filling these empty bottles with new

product, these bottles are passed through the bottle washing plant where these dirty bottles are

washed. It is completely an auto process which takes place within a machine called washer

machine. The machine has three compartments. Bottle for washing are placed on the conveyer

come inside the machine and get successive treatment. Bottles are treated with 4% caustic

soda in the first compartment at a temperature of 100-150Û C. Next these are conveyed to the

second compartment, where bottles are again washed with hot water at a temperature of 80-

100Û C, in the third compartment bottles are treated with cold or normal water at room

temperature. Time duration in each compartment is 10 minutes. Bottles are then sent through the

inspection center, where these are closely watched against white rays of light. Bottles containing

any dust or other unwanted things are removed from the line here.

Syrup room:

Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a specified ratio

into closed container. The temperature of this prepared sugar remains between 80-100ÛC. This

syrup contains some impurities as, sometimes there are some impurities presents in sugar, so this

syrup is filtered to remove all those contaminations.

Before storing in syrup tanks this syrup it is passed through the cooler where syrup

temperature is reduced to 25-30ÛC. This temperature is maintained throughout the whole process.

Here next flavors are added at a specified quantity with the syrup used for preparation of

Pepsi or other brands.

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Bottle filling plant:

Next, for preparation of carbonated soft drinks brands like Pepsi, Mirinda, 7UP, and mountain dew,

carbon dioxide gas (CO2) is mixed with this prepared solution. And for the brand like slice, fruit

pulp is added. Now the solution is ready for filling into the bottles. The washed empty bottles are

filled by automatic filler machine. This machine can fill 60 bottles in one minute. After filling,

crowns or caps are fitted on the filled bottles with the help of crowning machine. Now these filled

bottles are ladled and then sent for packing and storing in the godowns.

Acid room:

There are three tanks in this room. The first tank contains caustic soda, the 2nd tank contains hot

water and the third tank contains cold water. After finishing ever y batch of production the whole

production lines and containers/tanks are washed. And for this purpose, first of all caustic soda is

passed through the pipeline, next hot water and at the last cold water.

Yard for keeping empty bottles:

S.M.V. Beverages Pvt. Ltd. Jagatpur has a large area in side its premises. A large Part of its open

area is used for keeping the empty bottles.

Warehouse:

S.M.V. Beverages Pvt. Ltd. Jagatpur has its own warehouse in side its premises for storing the

produced products. The produced products are sent to the customers from these warehouses. For

transferring the filled bottles inside the company for k-lifts are used.

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PEPSICO PACKAGING PROCESS

PepsiCo is an industry leader in packaging- helping to promote and implement standards for

sustainable packaging.

PepsiCo distribute the products in a variety of packages, each carefully designed to deliver

convenience and appeal to the consumers while protecting the integrity of the products. The

team of engineers and packaging suppliers are dedicated to finding prefer able designs, and

are working continuously towards improving the packaging performance while reducing the

packaging footprint. PepsiCo are committed to bringing the environmental responsibilities to all

areas of the business. PepsiCo are continuously improving the environmental programs and

exploring solutions to environmental challenges through socially responsible, scientifically

based and economically sound methods. Pepsi pass this commitment along to his suppliers

and the consumers in an effort to do our part. The goals are to design and develop packaging

systems that are environmentally responsible throughout their entire life cycle, inspire

consumers who want to live more environmentally sustainable lives by promoting recycling, and

partner with leading organizations to promote sustainable packaging and recycling practices.

Through ongoing engagement with the packaging suppliers, I are working towards a position

where all of our operations use the most environmentally suitable packaging available in their

country of operation.

Pepsico follow five principles of sustainable packaging design:

Reduce: Using less material in the packaging, to conserve natural resources.

Reuse : Increasing use of reusable packaging and increasing the amount of

Recycled material in the packaging.

Recycle: Designing packaging for recycling and developing biodegradable and compostable

packaging solutions.

Remove: Eliminating environmentally sensitive materials and processes from the packaging.

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Renew : Increasing use of renewable resources.

In an effort to meet his goals, PepsiCo have launched a global sustainable packaging policy

and formed a Sustainable Packaging Council dedicated to:

Developing sustainable packaging strategies, goals, and targets

Developing alternative packaging material technologies

Supporting responsible disposal practices

Using Less Material in our Packaging

Although beverage containers are the most recycled consumer packaging in the United States ±

and they are designed for recycling, I continue to look for ways to reduce the amount of packaging

used for the products. And I are achieving success. PepsiCo scientists and packaging

specialists have led the way in reducing packaging materials through cost-effective changes in

design and production, known in the industry as "light- weighting." Light-weighting reduces the

amount of raw materials and energy used to make our packages and generates less waste after

the products are enjoyed.

PepsiCo introduced new packaging for half- liter bottles of Lipton iced tea, Tropicana juice

drinks, Aquafina Flavor Splash and Aquafina Alive that contain at least 20 percent less plastic than

the original package. Aquafina has trimmed the amount of plastic used in its most popular bottle -

the half-liter (16.9 oz) bottle - by 35 percent since 2002. This saves more than 50 million pounds

of plastic annually. Aquafina's half-liter bottle weight has changed from 15 grams to 13.2 grams

putting it among the lightest water bottles on the U.S. market.

Reducing and Recycling the Waste

At Frito-Lay, route sales employees return empty cartons from stores to our plants for reuse or

recycling and delivery boxes are used an aver age of six to seven times, saving nearly 5 million

trees a year and keeps 56 million pounds of cardboard away from landfills. For Frito-Lay's

North American and Inter national products, Frito-Lay recycles packaging film waste from our

suppliers' sites for use in various other products (park benches, boards, etc). Our Quaker Oats

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facility in Cupar, Scotland has reduced the amount of corrugate used by 30% over the past 5

years by moving to cases with open tops and reduced sides. Over the last five years, PepsiCo U.K.

has reduced the amount of plastic used to make Tropicana and Copella juice bottles by 18 percent.

In Mexico, our snack business saves more than 100 million boxes per year by using every

box about seven times between the distribution center and point of sale. By recycling our boxes up

to seven times, we save on average each year about 45,000 trees, 1,800,000 mz of water and

1,620,000 liters of fuel. The Latin America Beverages business has optimized beverage packaging

projects across Mexico, Peru, Columbia, Bolivia, Brazil, Argentina, Honduras and Guatemala,

resulting in the removal of over 800 tons of packing annually, specifically reducing the need for

PET resin for bottles, corrugate boxes, bottle-top closures and glass. The average Pepsi bottle

contains 10% recycled plastic, more than any other national soft drink brand. Pepsi-Cola's bottles and

cans are among the most recycled packages made since 1990; more than 150 billion Pepsi container s

have been recycled. Across all our U.S. divisions, initiatives conducted in 2007 to reduce packaging

have resulted in more than 20 million pounds of material reduction across PET bottles, paper board

and corrugated materials.

EVERY DEALER SURVEY (EDS)

The design of competitive marketing strategies begins with competitor analysis. The main

competitor of PepsiCo is Coca- Cola. In market I see three types of outlets where cold drinks are

sold; those are exclusive outlet of PepsiCo, exclusive outlet of Coca - cola and mixed outlet of

PepsiCo and Coca - cola. Every Dealer Survey refers to the survey of all the three types of outlets

of a market segment. I n this survey I collect the data of various promotional and selling tools

(case stock, number of glow sign, dealer board, bunting etc, and number of visicooler) provided by

PepsiCo as well as Coca - cola present at the outlets. Dealer survey is primary method by which

on gets first hand information with respect to the following factors:

Knowledge of market in terms of:

Name and number of dealers

Location of dealers.

Type of dealers.

Market output i.e. case stock, number of glow sign, dealer board, bunting etc, and Number

of visicooler.

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Importance of EDS (Every Dealer Survey):

Market Knowledge:

Dealer survey gives the total profile of the market by knowing

Location of dealers.

The type of dealers.

Number of dealers who keep Pepsi and Coca cola and comparing the stock and awareness of

brand.

Take the information about distribution process of company.

Take the information from dealer that which brand of product is more popular or consumed.

Gather the information about scheme which is given by company to dealers.

The marketing inputs with respect to:-

i. Advertising

ii. Vise cooler size

iii. Customer service

Though PepsiCo has entered the market only 15 years ago but it has captured a big market share

and ends the monopoly of Coca cola, which has ruled for 13 years. This survey enabled us to know,

How many exclusive outlets PepsiCo. , Coca cola and how many mixed outlets of brands

are there in a particular market segment?

What are the promotional kits present at all these three types of outlets provided by PepsiCo

and Coca cola?

What are the gaps? I.e. what are those promotional tools, which can be used to increase the

sale of PepsiCo?

How retailers can be motivated to sale PepsiCo. products instead of Coca cola?

Apart from these, this survey also provide us the information about the sales every outlets. And this

report is useful for planning or taking decisions about how much amount should be spent for sales

promotion for each outlet.

From these aspects I can know how good I am in the market place and those areas where I are

lacking. It also helps us to find out that in some place or areas were the competitors brand is only

available, then by the help of survey I can find out the reason behind the non availability of PepsiCo

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products in that specific area. The knowledge of case stock will indicate our “case-in trade” and that

of competitors. This will also indicate our “case velocity” which helps to plan our bottle as well as

whether our distribution is effective or not. If our case stock is low then we may decide upon a

“case stocking” campaign. Therefore, appropriate marketing strategies can be worked out

depending upon the findings.

PLAN -O- GRAM

PEPSICO STRATEGY

PepsiCo provides visi-coolers (Refrigerators fitted with glass door) to Pepsi outlets, so that the

retailers can provide chilled Pepsi drinks to consumers. This also increases the sale of Pepsi

Products. Visi- Coolers are of various sizes for instance 165 L, 200L, 220L, 300L, 400L, 440L,

650L, 1200L, and so on. Plan-O-Gram is the process of filling of visi-cooler with Pepsi products

i.e. 7UP, Mirinda, Slice, Mountain Dew, Aquafina, and Tropicana fruit juice according to the

sequence prescribed by PepsiCo.

As per the research conducted by PepsiCo, Pepsi is the most selling brand followed by 7UP,

Mirinda, Mountain Dew, and Slice. And on the basis of this research PepsiCo has developed a

sequence of different brands for filling up the visicooler and also for placing into the shelves.

Sequence is as under:

7UP > Mirinda > Mountain Dew > Slice > Aquafina

Pepsi products are available in glass bottles, pet bottles, metal cans, and tetra packs. The number of

bottles, cans and packets filled in visi-cooler.

Objectives

To keep the visi cooler pure.

To attract consumers by displaying their favorite brands or to help the consumers in finding

their favorite flavor and brand.

To attract consumers by displaying different brands.

To promote the sales of all flavors or brands.

To motivate the retailers for effective utilization of visicooler fro selling Pepsi brands

To beat the competitors and to lessen the sale of substitute brands available in the market.

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DISTRIBUTION CHANNEL

The main purpose of trade is to supply goods to the consumers living in far off places. As goods

and services moves from producer to consumers they may have to pass through different

individuals. The middlemen are the connecting links between producers and consumers. They

perform different functions such as buying, selling, storage, etc. the middlemen constitute the

channel of distribution of goods. Thus, a channel of distribution is the route or path along which

goods move from producers to ultimate consumers.

The rout taken by goods as they move from producers to consumers is known as Channel of

Distribution.

From the below diagram I can see that there is just one direct channel i.e. from producer to the

consumer. There are many indirect channels like:

1) PRODUCER > DISTRIBUTER > RETAILOR > CONSUMER

2) PRODUCER > CONSUMER

3) PRODUCER > DISTRIBUTER > CONSUMER

If the producer is producing the product on large scale, it may not be possible for him to sell goods

directly to consumers. As such, it sells goods through middlemen. These middlemen may be

wholesalers or retailers. A wholesaler is a person who buys goods in large quantity from producers:

where as a retailer is one who buys goods from wholesalers and producers and sells to ultimate

consumers as per there requirement. The involvement of various middlemen in the process of

distribution constitutes the indirect channel of distribution. Let us look in to some of the important

indirect channels of distribution.

PRODUCER

DISTRIBUTER RETAILER CONSUMER

20 | P a g e


DISTRIBUTOR

Distributors are one of the important middlemen in the channel of distribution who deals with the

goods in bulk quantity. They buy goods in bulk from the producers and sell them in relatively

smaller quantity to retailers. In some cases they also sell goods directly to the consumers if the

quantity to be purchased is more. They usually deal with a limited variety of items and also in a

specific line of product: like iron & steel, textile, paper, electric appliances, etc. let us know about

the characteristics of the distributors.

Characteristics of distributors:

i. Distributors buy goods directly from producers and manufacturers.

ii. Distributors buy goods in large quantities and sell in relatively smaller quantity.

iii. They sell different varieties of a particular line of product.

iv. They may employ a number of agents or workers for distribution of products.

v. Distributors need large amount of capital to invest in there business.

vi. They generally provide credit facility to retailers.

vii. He also provides financial assistance to the producers or manufacturers.

FUNCTIONS OF DISTRIBUTORS

a) Collection of goods: A distributor collects goods from producers in large quantity.

b) Storage of goods: A distributor collects the goods and stores them safely in warehouse, till

they are sold out.

c) Distribution: A distributor sells goods to different retailers. In this way he also performs

the function of distribution.

d) Financing: The distributor provides financial support to producers and manufacturers by

sending money in advance to them. He also sells good to the retailers on credit.

e) Risk taking: The distributor buys finished goods from the manufacturer and keeps them in

warehouse till they are sold.

21 | P a g e


SWOT ANALYSIS OF PEPSICO

In order to get clear understanding of the position of Diet Pepsi in the various markets I did

a SWOT analysis from the data obtained from the survey and the various retailer

interviews.

STRENGTHS

Product diversity

Extensive distribution channel

Corporate Social Responsibility (CSR) projects

Competency in mergers and acquisitions

22 brands earning more than $1 billion a year

Successful marketing and advertising campaigns

Complementary product sales

Proactive and progressive

WEAKNESS

Overdependence on Wal-Mart

Questionable practices (using tap water but labelling it as mountain spring water)

Much weaker brand awareness and market share in the world beverage market compared to

Coca-Cola

Too low net profit margin

22 | P a g e


OPPORTUNITIES

Growing beverages and snacks consumption in emerging markets (especially BRIC)

Increasing demand for healthy food and beverages

Further expansion through acquisitions

Bottled water consumption growth

Savoury snacks consumption growth

THREATS

Changes in consumer tastes

Water scarcity

Decreasing gross profit margin

Legal requirements to disclose negative information on product labels

Strong dollar

Increased competition from Snyder’s

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COCA –COLA COMPANY PROFILE

Keeping in view of tapping the Indian soft drink market and also developing soft drinks as a

drinking product among Indians. The Coca-Cola in India has setup an independent organizations

which is H.C.C & B.C.C with a capital of 350 U.S.$ each by virtue of sellout decision of the passed

managing director Sh. S. C. Aggarwal.

Hindustan Coca-Cola bottling (N-W) Pvt. Ltd. Najibabad took the complete possession of this

plant, land, machinery, & intellectuals on February 14’ 1998 and since then H.C.C, looking after all

its affairs under company owned bottling plant to establish integrated marketing system in the area.

CORE BRANDS:

Coca-Cola: Developed in a brass pot in 1886, coca-cola is the most recognized and admired

trademark around the globe. Not to mention the best selling soft drink in the world.

Sprite: In 1961, a citrus-flavored drink made its U.S debut, using “Sprite Boy “as inspiration for its

name. This elf with silver hair and a big smile was used in 1940s advertising for Coca-Cola. Sprite is

now the fastest growing major soft drink in U.S and the world’s most popular lemon-lime soft drink.

Fanta : The name “fanta “ was first registered as a trademark in Germany in 1941 ,when it was

used for a few year for a soft drink created from available materials and flavors . The name was

then revived in 1955 in Naples, Italy, when it was used for the:” fanta “orange drink we know

today. It is now the trademark name for a line of flavored drinks around the world.

Diet coke: The extension of the coca-cola name began in 1982 with the introduction of diet coke

(also called coca-cola light in some countries). Diet coke quickly becomes the number – one selling

low –calorie soft drink in the world.

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FABULOUS FACTS ABOUT COCA-COLA

1. The world’s largest spherical coca-cola sign is in Nagoya, Japan a top the dial – Nagoya

building in front of the Nagoya railway station. The sing is a double sphere constructed

from more then 46 tone of steel, more 940meter of neon tubing, and more then, 879 light

bulbs. The outer shape features the coca-cola logo and contour bottle, while the inner

sphere portrays a comic scene with twinkling planets and stars.

2. One of the world’s largest signs for coca-cola is located on a hill called “ELHACHA” in

America, Chile. It is 400 feet wide and 131 feet high and is made from 70,000, 26 ounce

bottles.

3. The first out door paint sign advertising coca-cola still exists. It was painted in 1894 in

Cartersville, Georgia.

4. Coca-cola is one of the world’s most recognizable trademarks recognized in countries that

account for 98 percent of the world’s population.

5. If all the coca-cola ever produced were in 8- ounce bottles. And these bottles were

distributed to each person in the world. There would be 678 bottles or over 42 gallons for

each person.

6. If all the coca-cola ever produced were in 8 – ounce bottles, placed side by side and end to

end to from a lane highway, it would wrap around the earth 82 times.

7. If all the coca-cola ever produced were flowing over Niagara fall at its normal rate of 105

million gallons per second instead of water, the falls would flow for about a day and a half

38 hours and 46 minutes.

8. The largest representation of the world’s best known package 100 foot tall glass contour

bottle is located at world of coca-cola, LAS VEGAS

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COCA-COLA IN INDIA

Coca-Cola, the corporation nourishing the global community with the world’s largest selling soft

drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving new thumbs

up to the Indian soft drink market. In the same year, the Company took over ownership of the

nation’s top soft-drink brand and bottling network. It’s no wondering our brands assumed an iconic

status in minds of world’s consumers.

A Healthy Growth to the Indian Economy

Ever since, Coca-Cola India has made significant investments to build and continually consolidate

its business in the country, including new production facilities, waste water treatment plants,

distribution systems, and marketing channels.

Coca-Cola India is among the country’s top international investors, having invested more than US$

1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its

operations.

A Pure Commitment to the Indian Economy

The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the

pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also

been instrumental in giving an exponential growth to the country’s job listings.

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CREATING ENORMOUS JOB OPPORTUNITIES

With virtually all the goods and services required to produce and market Coca-Cola being made in

India, the business system of the Company directly employs approximately 6,000 people, and

indirectly creates employment for more than 125,000 people in related industries through its vast

procurement, supply, and distribution system.

The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another

25 being owned by franchisees. That apart, a network of 21 contract packers manufactures a range

of products for the Company.

On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the narrow

alleyways of Indian cities – constantly keep our brands available in every nook and corner of the

country’s remotest areas.

These are only some of the facts that speak about our commitment to the growth of the Indian

Economy

PROMISE BY COCA-COLA

The coca-cola company exists to benefits and refreshes every one it touches. The basic proposition

of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our

stakeholders then we successfully nurture and protect our brand, particularly coca-cola. That is the

key to fulfilling our ultimate obligation to provide consistently attractive to the owner so four

business.

More then a billion times every day, thirsty people around the world reach for coca-cola products

for refreshment. They deserve the highest

Quality – every time. Our promise to deliver that quality is the most important promise we make.

and it involves a world-wide , yet distinctively local , network of bottling partner , supplier ,

distributor and retailers whose success is paramount to our own. Our investment in local

27 | P a g e


communities in over 200 countries totals billions of dollars in jobs, facilities, marketing, the

purchase of local good and services, and local business partnership. Always and every where , we

pursue continuous innovation in the products we offer the processes we use to make them, the

package we develop and the way we bring them to market .

BRANDS IN INDIA

Coca-Cola

Diet Coke

Thums Up

Sprite

Fanta

Limca

Maaza

Minute Maid Pulpy Orange

Minute Maid Nimbu Fresh

Burn

Kinley Water

Kinley Soda

Schweppes

GEORGIA Gold

http://www.coca-colaindia.com/products/coca-cola.html

http://www.coca-colaindia.com/products/diet_coke.html

http://www.coca-colaindia.com/products/thumsup.html

http://www.coca-colaindia.com/products/sprite.html

http://www.coca-colaindia.com/products/fanta.html

http://www.coca-colaindia.com/products/limca.html

http://www.coca-colaindia.com/products/maaza.html

http://www.coca-colaindia.com/products/mmpo.html

http://www.coca-colaindia.com/products/mm_nimbu_fresh.html

http://www.coca-colaindia.com/products/burn.html

http://www.coca-colaindia.com/products/kinley_water.html

http://www.coca-colaindia.com/products/kinley_soda.html

http://www.coca-colaindia.com/products/scwepps.html

http://www.coca-colaindia.com/products/georgia.html

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BRAND IN INDIAN ORIGIN

GOLD SPOT: this orange carbonate soft drink was introduced in the early 1950c, and acquired by

the Coca-Cola company in 1993, its tangy taste has been popular with Indian teenagers

LIMCA: It is thirst-quenching beverage features a fresh and light lemon-lime taste and lighthearted

attitude. The limca brand was introduced in 1971 and acquired by the coca-cola company in 1993.

MAAZA: Maaza, launched in 1984 and acquired by the coca-cola company in 1993, is a non

carbonated mango soft drink with a rich, juice & natural mango taste.

THUMPS UP: in 1993, the Coca-Cola company acquired this brand, which was originally

introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian cola.

SWOT ANALYSIS OF COCA COLA

STRENGHT

The best global brand in the world in terms of value ($77,839 billion)

World’s largest market share in beverage

Strong marketing and advertising

Most extensive beverage distribution channel

Customer loyalty

Bargaining power over suppliers

Corporate social responsibility

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WEAKNESS

Significant focus on carbonated drinks

Undiversified product portfolio

High debt level due to acquisitions

Negative publicity

Brand failures or many brands with insignificant amount of revenues

OPPORTUNITY

Bottled water consumption growth

Increasing demand for healthy food and beverage

Growing beverages consumption in emerging markets (especially BRIC)

Growth through acquisitions

THREATS

Changes in consumer preferences

Water scarcity

Strong dollar

Legal requirements to disclose negative information on product labels

Decreasing gross profit and net profit margins

Competition from PepsiCo

Saturated carbonated drinks market

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SOFT DRINK INDUSTRY IN INDIA

India with a population of more than 1.25 billion is potentially one of the largest consumer markets

in the world after china. The consumer market is popularly known as the FMCG market or the fast

moving consumer goods market. Soft drinks come under this category. Soft drink is basically

purchased in India basically for two reasons namely to quench thirst and for refreshment. The

Indian economy currently is passing through a bullish phase with increasing per capita income.

Subsequently the lifestyle of the Indian consumer is also changing with increased spending on

entertainment, refreshment etc. that is why soft drink companies are looking forward to India with

great enthusiasm in the future to increase their revenue.

The soft drink industry in India dates back to the 1940’s when Parle introduced the first branded

soft drink called gold spot. Cola giant coca-cola was the first foreign soft drink company to setup its

shop in India in 1965. Coca-Cola made a very good beginning and dominated the market right from

the word go. It faced no competition at that time. The marketing people did not even need to

publicize coca- cola. This extraordinary success of coca-cola can be attributed to the following

factors,

Absence of contemporary competitive brand.

The giant image of coca-cola in the western countries preceded their entry into the

Indian market.

Indians at that time were very fond of foreign goods.

Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970. Before

this they had introduced a cola flavored drink called pepping which they had to withdrew in the

face of stiff competition from coca- cola. But the overtly conservative Indian government of that

time with special interest in safe guarding the interest of the Indian companies started insisting that

coca-cola should agree on the following points in order to continue in India. Coca-cola decided to

windup its operations in 1977 rather than bowing to the Indian government. The main demands of

the Indian government were,

Dilution of equity, as the government felt that lots of foreign currency was being

wasted.

Manufacturing of the secret concentrate in India.

Disclosure of the chemical composition of the concentrate.

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The exit of coca-cola left a large vacuum in the soft drink market. But this also

accelerated the growth of several Indian soft drinks. Many new soft drinks like Frooti, jump- in etc

were launched in the form of tetra pack. However the bottling plants and the distribution networks

of these companies were not up to the mark and left much to be desired. It took these companies

almost one year to come up with new flavors like Campa cola, Rush etc. to survive in the industry.

However Parle, the pioneer in the soft drinks market blazed its way to national prominence with their

product Thumps Up bearing the slogan µhappy days are here again which became a craze. This

particular slogan helped to win over the loyalists of coca-cola who were in a state of cola shock

or cola depression! Soon the soft drink industry started registering phenomenal growth rates and all

parley products namely Gold Spot, Limca and Thumps Up became the brand leaders in their own

segments. In spite of this the soft drink market had a huge untapped potential. In 1990, coming of

the multinational brand Pepsi and immediately started giving stiff competition to Parley and

Coke. The parent company of Pepsi was founded in 1890 at North Carolina in USA. Its CEO is Roger

Enrico. Pepsi Co India Holdings Pvt. Ltd. In headquartered in Gurgaon and its CEO is Ms. Indra

Nyui. In India it has 34 bottling plants of which 8 are company owned bottling outlets (COBO)

and 26 are franchise owned bottling outlet (FOBO). SMV Beverages is a franchise owned bottling

outlet. Coca-cola reentered the Indian market in 1993 in collaborations with Parley India Ltd.

DISTRIBUTION CHANNEL OF COCA-COLA

BOTTLING PLANT

DEPOT RETAILERS

DISTRIBUTORS CONSUMERS

RETAILERS

CONSUMERS

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RESEARCH

“Mapping the Leading competitor activity in Bhubaneswar

market”

33 | P a g e


OBJECTIVE OF THE STUDY

Objective of study is to understand the leading competitor various activity such as; retailer margin

promotional activity/scheme, availability, acceptability, service etc.

Description of the Field

Introduction

The field of the study is Bhubaneswar town of the Odisha. The study was on the market research on

leading competitor and also about the retailers. As it is the Capital of Odisha, this region is very

developing with every scope to boost the living standard of people. As the situation is convenient for

our investigation to study “MAPPING THE LEADING COMPETITOR ACTIVITY IN

BHUBANESWAR MARKET”.

As field situation as crucial for the research, I find the field informative for research with the available

heads.

Field

The field of my study covers mix “B” counters retailers in Bhubaneswar city.

RESEARCH METHODOLOGY

INTRODUCTION

Every research needs a systematic or scientific study so that proper authentic data can be

found out.

By systematic it is mean that the study should be best on scientific analysis and follows a

proper and logical methodology.

In order to make our research empirically valid and scientifically relevant a proper research

methodology has been which caters from research design, research tools, techniques

methods, to analysis and proper presentation on data.

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METHODS OF DATA COLLECTION

Primary Data

Secondary Data

Primary Data Collection:-

Primary data can be collected by three ways:

1. Observation

2. Experiment

3. Surveys

But here, only survey method of data collection is preferred which is very suitable to reach the

researchers motto.

Research Instrument: Printed questionnaire was used as the research instrument to collect the

required information. Separate questionnaires were prepared for retailer’s survey and interview was

taken by the help of the questionnaire.

Area of Survey: The survey was conducted in the different area of Bhubaneswar City.

Sampling Plan: - Sampling plan consists of:

a) Sampling Unit: - The retailer of grocery shop, general store and betel shop was selected from

different place of Bhubaneswar.

b) Sample Size: - For retailer’s survey 60 “B” counter retailers were taken randomly as sample

size.

c) Sampling Procedure: - Cluster sampling producer was followed.

d) Sampling Method: Data were collected by retailer’s survey. The retailer directly conducted

and interviewed at their retail counter.

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SELECTION OF SAMPLES

When a small group is taken as the representative of the whole, the study is taken as sampling

study. The whole group from which the samples have been drawn is technically known as universe

or population and the group selected for the study is known as sample. The sample is very small as

compared to the universe which may inconvenient yet it fulfills the aim of the topic selected to be

studied. As sampling method simple random sampling design was taken. Because the samples or

the respondents were selected on the random basis without any bios.

DATA COLLECTION (Tool and Techniques used)

Data are of two types, i.e. Primary and Secondary. To collect primary data from different

source, along with samples, different tool and techniques will be used.

The methods of primary data collection i.e. adopted that present study are interview method

(structured), questionnaires method (both open and closed ended) also the observation

method.

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REVIEW OF LITERATURE

To explore the reasons behind these developments this study will analyze the marketing initiatives

and policies of PepsiCo India in detail with particular focus on its partner relationship management.

The above-mentioned objectives can be achieved by carrying a proper and planned research

involving different types and methods. The data collected followed the foundations for the study

and gave a platform for the analysis and findings which lead to the fulfillment of the objectives.

The data collected for research is primary and secondary. Primary data is collected by observation,

interviews and questionnaires. While secondary data is collected from the internet through different

case studies and reports on the CSD industry. Observation method was carried in Allahabad to

know the market position and market share of PepsiCo products. Interviews of people from the

sales department were conducted to know the sales and distribution network and marketing policies

of PepsiCo India, while questionnaire method was used to know about the customer perception of

the slim diet can portfolio. Secondary data is used to know about the CSD industry and the

Company i.e. PepsiCo.

The data collection and analysis paves way for the recommendation ad conclusion of the study that

reveals some important findings regarding the strategy and corporate structure and strategy of

PepsiCo India

37 | P a g e


DATA ANALYSIS AND INTERPRETATION

I have collected the primary data through questionnaire & secondary data using shopkeepers, print

media, internet etc. Here I have taken total 60 mix “B” counter outlets respondents randomly at

Bhubaneswar market.

Q1. How do you rate the retailer’s margin of PepsiCo and coca cola?

Q.2) Why do you like keep it?

INTERPRETATION: The above chart shows that out of the surveyed outlets 60% are

satisfied with PepsiCo margin as compare to Coca Cola margin.

Highly satisfied27%

Satisfactory60%

Average13%

dissatisfactory0%

Highly dissatisfactory

0%

PepsiCo

Highly satisfied

Satisfactory

Average

dissatisfactory


Highly satisfied10%

Satisfactory43%

Average30%

dissatisfactory17%


0%

Coca cola

Highly satisfied

Satisfactory

Average

dissatisfactory


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Q2. How do you rate the discount offered by the PepsiCo and coke on bulk purchase?


satisfied with PepsiCo offered discount as compare to Coca Cola.

Highly satisfied20%

Satisfactory70%

Average10%

dissatisfactory0%


0%

PepsiCo

Highly satisfied

Satisfactory

Average

dissatisfactory


Highly satisfied10%

Satisfactory50%

Average40%

dissatisfactory0%


0%

Coca cola

Highly satisfied

Satisfactory

Average

dissatisfactory


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Q3. How much time it takes for delivery of PepsiCo and Coca-Cola?

INTERPRETATION: The above chart shows that 80% of the retailers surveyed had good

opinion towards the distributors of PepsiCo.

0

5

10

15

20

25

30

35

40

45

50

6-12 hours 1-2 days 2-7 days > 7 days

Pepsi

Coca Cola

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Q4. How do you rate the schemes delivered to the retailers?


satisfied with PepsiCo schemes as compare to Coca Cola schemes .

Highly satisfied10%

Satisfactory80%

Average10%

dissatisfactory0%


0%

PepsiCo

Highly satisfied

Satisfactory

Average

dissatisfactory


Highly satisfied

0%

Satisfactory50%

Average40%

dissatisfactory10%


0%

Coca cola

Highly satisfied

Satisfactory

Average

dissatisfactory


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Q5. Does the company executive visit your shop regularly to convey schemes?

Q6. which brand do you prefer more in your store?

INTERPRETATION: The above chart shows that there is a more demand for Coke Products

in Bhubaneswar market.

0

10

20

30

40

50

60

Yes No

Pepsi

Coca Cola

0

10

20

30

40

Pepsi Coca Cola

21

39

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Q7. Does the company give proper response to queries?


satisfied with PepsiCo proper response query.

Yes90%

No10%

PepsiCo

Yes

No

Yes70%

No30%

Coca Cola

Yes

No

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Q8. How do rate as per the availability?

Highly satisfied10%

Satisfactory50%

Average30%

dissatisfactory10%

Highly dissatisfactory0%

Coca cola

Highly satisfied

Satisfactory

Average

dissatisfactory


Highly satisfied10%

Satisfactory80%

Average0%

dissatisfactory10%


0%

PepsiCo

Highly satisfied

Satisfactory

Average

dissatisfactory


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Q9. How do you rate the Pepsi overall compare to Coke?

INTERPRETATION: The above chart shows that 99% of the retailers surveyed had good

opinion towards the overall service; therefore the company has to maintain the same.

Highly satisfied20%

Satisfactory70%

Average0%

dissatisfactory10% Highly dissatisfactory

0%

PepsiCo

Highly satisfied

Satisfactory

Average

dissatisfactory


Highly satisfied10%

Satisfactory40%

Average50%

dissatisfactory0% Highly dissatisfactory

0%

Coca cola

Highly satisfied

Satisfactory

Average

dissatisfactory


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FINDINGS:

The basic problem is that the supply from the plant to the depot takes a long time therefore

distributors are not in the position the supply the required quantity to the retailers in time.

On an average the sales per week of the retailers is between 0-20 cases.

On an average the expected visits are daily.

The sales people and the distributor have not maintained good relationship with the retailers.

Margin of PepsiCo is better than Coca Cola.

Schemes are not properly convey to the retailer.

Acceptability of PepsiCo is less in the market.

Visicooler problems are not solving in time.

B counter are delivering less product.

There is no coordination between Pre sales representative and delivery agent.

Order base delivery system is followed more than ready base delivery system.

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RECOMMENDATION:

I give the following suggestion that can be implemented to increase the retailer satisfaction and

profitability of the company.

More emphasis should be given in retaining and building loyalty among retailers while at

the same time new retailers should be encouraged to sell Pepsi.

The PSRs are found to be highly demotivated to push to product in the market. Thus I

suggest the involvement of the concerned authorities to motivate them in an appropriate way

as per the boundaries of the organization.

The orders brought by the PSRs should be verified by the CE and ADC and to deliver the

same quantity as per the schemes to verify as well.

The demand for the product like SLICE, Mountain dew is found to be high and the products

are not in adequate amount to meet the demand. the reason I found is the lack in empty

bottles of the above mentioned products .thus the collection of empty bottles of these

products should be collected frequently from the retailers leading to filling it up again and to

meet the demand to some extent.

The curbside debrief is be collected from the PSRs and a random call to any of the retailer

should be given by the ADC to find out whether the curbside sheet is truly filled up or not.

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LIMITATION:

1. Some of the retailer was not ready to be interviewed due to lack of time and some are not

interested in getting interviewed in fear of disclosing their privacy.

2. Sometimes retailers were not able to recall the fact which was asked the question.

3. Scorching heat in the Bhubaneswar city came as a barrier while doing the project.

4. Often retailers are reluctant to provide information related to my project.

5. Due to time constant we are unable to cover whole outlets in Bhubaneswar market.

6. Sample size was taken randomly 60 outlets; it is less as compare to the market

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CONCLUSION:

Everything in this world is made to utilize properly but should be reach at the proper person or

to the proper utilize areas. Otherwise the value added to those things become in vein. As there is

a proverb that, “Far from eye, far from heart” .

Thus marketing role play a very important role in achieving the objectives of a company.

Undoubtly, value utility is created by the manufacture of product or service but time and place

utilities are created by marketing role. According to Drucker, “both the market and the

distribution channels are often more crucial than the product”. They are primary and the product

is secondary. In an economy like that of India, where marginal shortages can lead to

disproportion distortion in prices, a dependable and efficient distribution distortion in prices, a

dependable and efficient distribution system is very much essential. The distribution system

creates a value added to all most all products.

All from the above study not withstanding its restructuring efforts, there is significant

difference between PepsiCo and Coca Cola; such as retailer margin promotional activity/scheme,

availability, acceptability, service in terms of satisfaction of shopkeeper at Bhubaneswar.

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ANNEXURE

Survey: Mapping the leading competitor activity in Bhubaneswar market.

Name of the Retailer:

Name of the Outlet:

Area

Relevant Channel:

[ ] Convenience

[ ] Grocery [ ] Eatery

[ ] Bar

1) How do you rate the retailers margin of PepsiCo and coca cola?

Highly satisfied Satisfactory Average dissatisfactory highly

dissatisfactory

PepsiCo

Coca Cola

2) How do you rate the discount offered by the PepsiCo and coke on bulk purchase?

Highly satisfied Satisfactory Average dissatisfactory Highly

dissatisfactory

Pepsi

Coca Cola

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3) How much time it takes for delivery of PepsiCo and coke?

PepsiCo co Coca Cola

6 – 12 hrs

1-2 days

2-7 days

more 7days

4) How do you rate the schemes delivered to the retailers?

Highly satisfied Satisfactory Average dissatisfactory Highly dissatisfactory

PepsiCo

Coca Cola

5) Do the company executive visit your shop regularly to convey schemes?

PepsiCo Coca Cola

Yes

No

6) which brand do you prefer more in your store?

PepsiCo [ ]

Coca Cola [ ]

7) Does the company give proper response to queries?

PepsiCo Coca Cola

Yes

No

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8) How do rate as per the availability?


PepsiCo

Coca Cola

9) How do you rate the PepsiCo overall compare to Coke?


PepsiCo

Coca Cola

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BIBLIOGRAPHY

www.pepsizone.com

www.pepsiindia.com

www.wikipedia.com

www.coca-colaindia.com

http://www.pepsizone.com/

http://www.pepsiindia.com/

http://www.wikipedia.com/

Education

competitve analysis of pepsi and coca cola