OAA MAVMM SCHOOL OF MANAGEMENT

A SUMMER PROJECT REPORT ON

A Study on retailers preference towards orange flavor At PEPSI CO MADURAI

For the Partial fulfillment of the degree of Master of Business Administration

M.B.A (2011-12)
Under the Guidance of

Prof. N. SHANMUGA RAJAN

Submitted by

T.SUDHARSAN REG .NO. 91181161017 Submitted to

ANNA UNIVERSITY OF TECHNOLOGY,MADU RAI

DECLARATION

I, T.SUDHARSAN hereby declare that the summer project report titled A study on retailers preference towards orange flavor written and submitted to OAA MAVMM SCHOOL OF MANAGEMENT by me is my own and its equal copy has not been reproduced to any other institution/university or published anywhere else.

T.SUDHARSAN

REG.NO. 911811610117

ACKNOWLEDGEMENT

I am thankful to Prof. ., director of OAA MAVMM SCHOOLOF MANAGEMENT who showers her ever graceful guidance by extending her cooperation in giving an opportunity to do my summer project report on A study on R e t a i l e r s p r e f e r e n c e t o w a r d s o r a n g e f l a v o r at PEPSI CO Pvt. Ltd. I take this opportunity to place on record my grateful thanks and sincere gratitude to Mr. kumar PEPSI CO Pvt Ltd, Madurai, who has given me this opportunity to conduct this project work in this organization. My study would not have been completed if I had not been able to get the support and guidance of Mr. Mahendran and other employees of the organization. I am also highly indebted to my esteemed guide Prof. N.shanmugarajan (Associate Faculty in M S M ,Madurai) whose continued and invaluable guidance can never be forgotten by me and without whom, this study could not have got the present shape. Lastly, I would express my grateful thanks to my family members and my friends who inspired me to put in my best efforts for the preparation of the Project Report.

CHAPTER NO. 1

CONTENT
INTRODUCTION OBJECTIVES SCOPE LIMITATIONS ORGANIZATION PROFILE COMPANY PRODUCTS REVIEW OF LITERATURE RESEARCH METHODS RESEARCH METHODOLOGY ANALYSIS AND INTERPRETATION PERCENTAGE ANALYSIS CHI- SQUARE TEST RANK CORRELATION ANALYSIS FINDINGS AND SUGGESTIONS CONCLUSION BIBLIOGRAPHY ANNEXURE

PAGE NO. 7 8 8 9 10 11 12 13 14 15 25 27 28 32 33 34

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4 5

6 7 8 9

CHAPTERISATION SCHEME
This report consists of six chapters of which 4

The first chapter includes the details of general introduction, need of the study nature of the study, objectives of the study, and limitations of the study. The second chapter includes company profile, products, . The third chapter deals with review of literature. The fourth chapter includes methodology that the researcher adopted The fifth chapter consists of Analysis and interpretations of data collected from the respondents. The sixth chapter consists of Findings and suggestions. And finally includes conclusion, annexure and bibliography.

CH

PT I ER

INTRODUCTION Good marketing is no accident, but a result of careful planning and execution. Marketing practices are continually being refined and reformed in virtually all industries to increase the chances of success. Marketing excellence is rare and difficult to achieve. Marketing is both art and science there is constant tension between the formulated side of marketing and the creative side. The world economy has undergone a radial transformation in the last two decades Geographical and cultural distance have shrunk significantly with the improvements in the production, transportation and communication. These advances have permitted companies to widen substantially both these markets and their supplier sources. And thus the role of marketing becomes wide. Marketing is the specialization subject of MBA curriculum. When a flood of consumer products are coming into the market, every company needs people specialized in marketing to promote their product.
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Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is meetings needs profitably. The 21st century is the era of Advertising, Marketing and Sales Production; Marketing is to convert social needs into profitable opportunities. As it is said Marketing thinking starts with the human needs and wants. Apart from basic necessities of air, water, shelter and clothing, every person has strong desire for recreation and entertainment. They have strong preference for particular brand of basic and services. Marketing serves as the link between the societys needs and its pattern of Industrial response. Beverage industry is one of the fast growing industries in India. We can divide Beverages into two sections i.e. Alcoholic & Non-alcoholic. The non-alcoholic drinks are soft drinks that can be further classified Cola, Lemon, Orange, Mango and Apple segment.

OBJECTIVE: To know about the stock position of Pepsi brand and its competitors at different outlets. To know the per day sale of Pepsi brand and its competitors in crates. To know the distribution channel of Pepsi.

SCOPE OF THE STUDY The training in the organization is very important for a student who is undergoing with such course. This course is not the answer for all the problems, which arises in the practical fields. There is no certain formula for any particular problems, but the aim of this study is to develop the ability of decision-making. A right decision at right time itself helps an organization to run smoothly. This training in an organization gives an idea how decisions are taken tact fully when any problem comes to an executive. So the way of problem solving, right decisions making and knowledge of different type of marketing activities give much importance to the study. Though only in one month it was not possible to understand it so deeply but an overall idea could develop.

LIMITATIONS OF THE STUDY

Many difficulties come in front on me while collecting the data as many retailers do not cooperate and searching of retailer outlet name was much more difficult as many of them were changed their outlets name,

CHAPTER II

COMPANY PROFILE

PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001which added the Gatorade brand to its portfolio. As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than $1 billion each[3], and the companys products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business. Indira Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 285,000 people worldwide as of 2010. The companys beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.

PRODUCTS

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DATA ANALYZE INTERPRETATION

PERCENTAGE METHOD

AND

1. Which type of outlet?

OUTLET S.NO OPTIONS GENERAL 1 STORE 2 JUICE SHOP 3 TEA STALL SWEET 4 STALL TOTAL

No. OF RESPONDENTS 38 17 26 19 100

PERCENTAGE 38 17 26 19 100

INTERPRETATION: From this above chart, clearly came to know that 38% of respondent to sell product at general store and 26% in tea stall.

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2. Monthly sales of soft drinks (Rs)

MONTHLY SALES S.NO OPTIONS 1 < 5000 2 5000-10000 3 10000-15000 4 > 15000 TOTAL

No. OF RESPONDENTS 36 45 12 7 100

PERCENTAGE 36 45 12 7 100

INTERPRETATION: From this above chart, clearly came to know that 45% of respondent to sell product of between Rs 5000 to 10000.

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3. NO. OF TRAYS SOLD PER MONTH OF SOFT DRINKS?

TRAYS SOLD S.NO OPTIONS 1 < 50 2 50-100 3 100-150 4 > 150 TOTAL

No. OF RESPONDENTS 48 38 11 3 100

PERCENTAGE 48 38 11 3 100

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4. Which brands of soft drinks are available in outlet orange flavor?

S.NO 1 2 3 4 OPTIONS FANTA MIRANDA TORINO OTHERS TOTAL No. OF RESPONDENTS 26 55 14 5 100 PERCENTAGE 26 55 14 5 100

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5. WHAT SIZE OF ORANGE FLAVOR SOLD MAXIMUM?

S.NO 1 2 3 4 5

OPTIONS 200 ML 300 ML 500 ML 1 LTR 2.5 LTR TOTAL

No. OF RESPONDENTS 43 3 35 9 10 100

PERCENTAGE 43 3 35 9 10 100

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6. IF IT IS MIRANDA IS BETTER THAN OTHERS ?

S.NO 1 2 OPTIONS YES NO No. OF RESPONDENTS 66 30 PERCENTAGE 66 30

TOTAL

100

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7. WHEN A CUSTOMER COMES TO YOUR SHOP WHICH BRAND OF ORANGE FLAVOR SOFT DRINKS DOES HE/SHE DEMANDS?

S.NO 1 2 3 4

OPTIONS MIRANDA TORINO FANTA OTHERS TOTAL

No. OF RESPONDENTS 51 19 23 7 100

PERCENTAGE 51 19 23 7 100

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8.WHAT IS THE POSITION DELIVERY OF PEPSI PRODUCT FOR MIRANDA?

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S.NO 1 2 3 4

OPTIONS VERY GOOD GOOD BAD WORSE TOTAL

No. OF RESPONDENTS 31 52 12 5 100

PERCENTAGE 31 52 12 5 100

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9.ARE YOU SATISFIED WITH MIRANDA OFFERS PROVIDING?

S.NO 1 2

OPTIONS YES NO

No. OF RESPONDENTS 58 42

PERCENTAGE 58 42

TOTAL

100

100

10.WHICH COMPANY GIVES BETTER SCHEME?

S.NO 1 2 3 4

OPTIONS MIRANDA FANTA TORINO OTHERS TOTAL

No. OF RESPONDENTS 58 36 3 3 100

PERCENTAGE 58 36 3 3 100

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11.WHICH COMPANYS SOFT DRINKS IS DEMANDED MOST?

S.NO 1 2 3 4

OPTIONS PEPSI COKE TORINO OTHERS TOTAL

No. OF RESPONDENTS 56 13 16 15 100

PERCENTAGE 56 13 16 15 100

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12.DO YOU LIKE MIRANDA ADS CAMPAIGN?

S.NO 1 2 3 4

OPTIONS VERY GOOD GOOD FAIR ACCEPTABLE TOTAL

No. OF RESPONDENTS 19 30 14 21 100

PERCENTAGE 19 30 14 21 100

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13.WHAT IS THE FREQUENCY OF THE VISIT OF PEPSI EXECUTIVE?

S.NO 1 2 3 4

OPTIONS DAILY ALTERNATE DAY WEEKLY FORTNIGHTL Y TOTAL

No. OF RESPONDENTS 12 43 25 20 100

PERCENTAGE 12 43 25 20 100

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14.WHICH FACTORS AFFECT THE SALE MOST?

S.NO 1 2 3 4 5 OPTIONS ADVERTISEM ENT SCHEME TASTE PRICE OTHERS No. OF RESPONDENTS 33 20 27 11 9 PERCENTAGE 33 20 27 11 9

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15.WHICH COMPANY VISI COOLER DO YOU HAVE ?

S.NO 1 2 3 4 OPTIONS PEPSI COCA COLA BOTH OWN TOTAL No. OF RESPONDENTS 54 23 11 9 100 PERCENTAGE 54 23 11 9 100

16.WHAT IS THE POSITION OF MAINTENANCE WORK OF REFRIGERATOR DONE BY PEPSI COMPANY?

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S.NO 1 2 3 4

OPTIONS HIGH SATISFIED SATISFIED DISSATISFIE D HIGHLY DISATIFIED TOTAL

No. OF RESPONDENTS 20 43 12 7

PERCENTAGE 20 43 12 7

17.HAVE YOU BEEN PROVIDED WITH SIGN BOARD/ DISPLAY RACK BY PEPSI COMPANY?
S.NO 1 2 OPTIONS YES NO No. OF RESPONDENTS 30 70 PERCENTAGE 30 70

TOTAL

100

100

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CHI SQUARE TEST

HYPOTHESIS:

Ho there is no significant difference between OUTLET for POSITION DELIVERY of beta stall and general store. H1 there is significant difference between OUTLET for POSITION DELIVERY of beta stall and general store.

Observed frequency

VG General store beeta total 12 8 20

G 19 14 33

B 5 3 8

W 2 1 3

total 38 26 64

Expected frequency

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VG General store beeta total 11.8 8.12 20

G 20.18 13.81 33

B 4.75 3.25 8

W 1.78 1.21 3

total 38 26 64

O 12 19 5 2 8 14 3 1

E 11.8 20.18 4.75 1.78 8.12 13.81 3.25 1.21

O-E 0.2 -1.18 0.25 0.22 -0.12 0.19 -0.25 -0.21

[(O-E)^2] / E 0.003 0.068 0.013 0.027 0.001 0.002 0.019 0.036

FORMULA: 29

X2=0.169 Degree of freedom = (c-1) (r-1) = (4-1) (2-1) =3 Table value for degree of freedom 3 at 5% level of significance is 7.815

RESULT:
The calculated value is less than the table value at 5% level of significance, then accept null hypothesis

CORRELATION To find out correlation between facilities provided for training and training satisfaction PEPSI EXECUTIVE VISIT(X) FACTORS AFFECT (Y) 12 31 43 52 25 20 12 5

X 12 43 25 20 100

Y 31 52 12 5 100

X2 144 1849 625 400 3018

Y2 961 2704 144 25 3834

xy 372 2236 300 100 3008

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R=

(X-X1 ) (Y-Y1 ) --------------------------------------------

{(X-X1 )^2 * (Y-Y1 )^2}

R= 2032 --------3325 = 0.6111//

RESULT: Therefore the degree of relationship (i. e) correlation between visit of Pepsi executive and delivery of Pepsi product are very low.

FINDINGS The collected data which were analyzed came out with the following conclusions:1. It is found that some outlets perform well in that is display the pet bottles in rack, they display properly in one area then some fails to do perform in another. The reason behind this is that they do not receive any kinds of rack or freeze from company for display the Pepsi products. Some retailers were saying that they have not so much space in their outlets to show the product and some other have space racks but they put other materials on it as they not aware about this scheme. 2. In various outlets the retailers were good response towards distribution of Pepsi. But some of them complain about the distribution. Some say distribution of Pepsi is not properly distributed in time. 3. when they need pet bottles (7-up, Miranda) the distributor has not provided at that time. 4. And the free offers or gift were not distributed properly to the retailer in which they face problem when customer demanded free gifts.
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5.

Some outlets were complaining about the racks and freeze which is not given to them by

distributor but some place there is good response. So more or less there is a good response of retailer towards Pepsi distribution. 6. In the city like MADURAI, Pepsi products are reaching to every corner (remote area) where not a single bottle of Coca-Cola can be seen. 7. Most of the dealers want glow sign and chilling equipments, which they are asking from long time. 8. Most of the consumer doesnt like the taste of PEPSI due to its Sweetness and low fizz. 9. Dealers are asking for the incentives and sales promotional schemes. 10. Some dealers & retailers stops selling Pepsi products because they are not satisfied with the company, where Coca-Cola fulfill some of their demand and got the opportunity to make exclusive counter for the soft drinks.

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Suggestions 1. First of all company will provide all its dealers and retailers to all sort of promotion

equipment such as glow sign board, banner, rack, freeze, etc. in time so that they increase their sales which is benefited both retailer as well as company. 2. The distribution channels need to be improving so that retailer/dealer will get soft drinks at time when they need. 3. Salesman should have good interaction with the dealers, which result Company in increase in sales. Company executives should visit the counter on weekly basis. Executives should take the feedback from the dealers about the service of the sales man and the distributors 4. Regular visit of technician is required to solve the problems of Freeze in the market at the right time. 5. More improvement is required in the distribution network in the outskirt and in the remote areas, because in the peak seasons like summer the small dealers are taking goods twice or thrice and in between if the distributors could not supply them, the competitors will get the opportunities to supply the goods. 6. The entire Pepsi product should be displayed at one place so that the customers can aware about the different brand of Pepsi. In the bus stand, railway canteen, highway the CAN and PET Bottles should be made available every time because the publics are busy there and they cannot wait. 7. Pepsi is a sweet and low fizz soft drink that everybody knows and so lots of people do not like so to catch the customers Pepsi should come out with more fizz. 8. Few outlets are unaware about scheme so proper communication is necessary between distributor and dealers/retailers. 9. There should be more focus on 100% availability so that Pepsi dont lose sales & market share. 10. All mixed outlets which stock multiple products should be transferred to exclusive Pepsi outlets.

11. More & more research should be made to find new segment & more profitable market for the product. 12. Kids constitute the second largest segment of the soft drink market. So, more & more fun based advertisement for the brands should be necessary. Some life style based advertisement is also necessary. 13. The company strategy should be made in such a way, that maximum no of consumer will prefer to consume Pepsi i.e. give importance to quality control, give more importance to public awareness and in advertisement. 14. Dealers are the good intermediaries so the company should give more packages to the dealer, by which they can looks towards the high sales of this particular brand. 15 . The Company should start survey time to time to know the grievances of retailer as well as consumers. 16. Somet imes absence of stocks annoys retailer and consumers, so company should keep a watch to the availability of brand. 17. Promotional advertising must include some Indian stars (film & cricket). 18. Supply chain should be enhanced more than 100%. 19. Fountain should be provided to outlets, which is very much demand in market.

CONCLUSION Pepsi & its Product Co. are the Profitable MNCs in not only India but also in the whole world. Its main competitor is Coca-Cola. Pepsi has built a reputation around the world as a major player in the soft drink market as well as the leader in the snack food industry. Currently they are facing stiff competition from Coca-Cola, but with their various marketing ventures as well as the selling of their restaurant franchises, Pepsi is poised to give Coke a definite battle in the future as to which cola consumers want. Promotional activities play a greater and important role in the entire marketing - to generate more sales as well as to create and maintain an image of its product. The dealers achieving highest sales over and above the target set is giving the awards as under, the order of prizes announced are first prize, 2nd prize, 3rd prize in terms of number of free cases of soft drinks and gifts. . It also helps in communication the need satisfying qualities of soft drink, to facilitate the sales and eventually to contribute towards the profit in long range and a great display will result in great sales and that is a 100% guaranteed way to add profits .So time to time this type of scheme will help the company to improve the sales in long time.

BIBILOGRAPHY
websites www.scribd.com on 2.8.12 www.slideshare.com on 25.07.12 www.pepsi.com on 27.07.12 www.wikipedia.com on 10.08.12

Book referred Phlip Kotler: Marketing management (Millenium edidtion), prentice hall of India P (ltd), New Delhi 2001.

Donald R.Cooper and Ramcis S.Schindler, Business Research Methods, Tata McGraw Hill Publishing CompanyLimited, New Delhi, 2000.

C.R.Kothari Research Methodology, Wishva Prakashan, New Delhi, 2001.

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ANNEXURE

(1) Monthly sales of soft drinks (in Rs.) (a) Less than 5000 (b) Between 5000 to 10,000 (c) 10,000 to 15,000 (d) Above 15,000 (2) Number of carets sold per month of soft drinks. (a) 0 - 50 carets (b) 50 to 100 carets (c) 100 to 150 carets (d) 150 to 200 carets (3) Which type of outlet? (a) General Store (b) Grocery (c) Betel Shop (d) Sweet Shop (4) Which brands of soft drinks are available in the outlet-orange flavor?
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(a) Fanta (b) Miranda (c) Torino (d) others (5)What size of orange flavor is sold maximum? (A) 200ml (b) 300ml (c) 500ml (d) 1ltr (6)If it is Miranda is better than others? A) Yes b) no (e) 2.5ltr

(7) When a customer comes to your shop which brand of orange flavor soft drinks does he/she demands? (a)Miranda (b) Torino (c) Fanta (d) others

(8) Which companys soft drink is demanded most? (a) Pepsi (b) coke(c) Torino (d) others (9) What is the position delivery of Pepsi products for Miranda? (a) Very Good (b) Good (c) Bad (d) Worse (10)Are you satisfied with Miranda offers- providing? A) Yes b) no

(11)Which company gives better scheme? a) Miranda b) Fanta c) Torino d) others

(12)Do you like of Miranda ads campaign? a) Very good B) good C) fair D) acceptable

(13) What is the frequency of the visit of Pepsi executive? (a) Daily (b) Alternate Day (c) Weekly (d) Fortnightly (14) Which factors affect the sale most? (a) Advertisement (b) Scheme (c) Taste (d) Price (e) Others

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(15) Which company Vis i-Cooler do you have? (a) Pepsi (b) Coca Cola (c) Both (d) Own (16) What is the position of maintenance work of refrigerator done by Pepsi Company? (a) Highly satisfactory (b) satisfactory (c) Less satisfactory (d) Not satisfactory (17) Have you been provided with sign board/display rack by Pepsi Company? (a) Yes (b) No

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