DECLARATION

I Ravi Verma declare that this project report Entitled

Promotional Strategies Adopted by Pepsi for Boosting Sale is

an original piece of work done and Submitted by me towards partial fulfillment of my postgraduate programme in MBA, under the Guidance of Pepsi food private limited.

DATE:

Ravi Verma Roll NO. 1116370032

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

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 have completed this training with the help of different personalities. I wish to express my gratitude towards all of them.

I would also like to thank my college guide Himanshu Gaur (Assistant professor) for steering my confidence and capability for giving me insight into training by giving me exposure to the arena of competitive and real world.

Lastly I would like to thank my parents and friends for their constant support during the duration of my training.

DATE:

Ravi Verma Roll NO. 1116370032

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

PREFACE
Marketing plays vital role in todays business scenario in consumer product Company, when there is such a high competition in the market.

The emphasis in the project is providing the study and insight into Indian FMCG Business Scenario. The Summer Project is designed to provide participation of MBA program as on the job experience. This has given a chance to try and apply the academic knowledge and gain insight into corporate culture. This helps in developing decision making abilities and emphasizes on active participation by the student.

We gained valuable experience & knowledge during the survey. The Project consists of our findings after data analysis & then conclusions were drawn and finally recommendations were put forward.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

INDEX

Sr.no 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Content Executive summary Objective of summer training Introduction of project Product Profile Research methodology Project analysis Conclusion Recommendation Limitation Questionnaire Bibliography

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

EXECUTIVE SUMMARY
I did my summer internship training in PepsiCo Holdings India Limited a FMCG sector company. My project title is PROMOTIONAL STRATEGIES ADOPTED BY PEPSI FOR BOOSTING SALE.

The projects basic objective is to analyzing the Promotion Techniques and behavior of retail outlets under the Distributorship of Lucknow.

In this project I surveyed numerous areas of Lucknow and asked selected questions to the outlet owners who were either not selling Pepsi products largely or in very less quantity.

Out of my project I tried to seek answer to all those questions which were strongly affecting the sale and business of PepsiCo Products.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

OBJECTIVE OF SUMMER TRAINING TOPIC: PROMOTIONAL STRATEGIES ADOPTED BY PEPSI FOR BOOSTING SALE.

Basically there were two objectives:-

Primary objective
To get an insight of the Market Share and impact of Promotional Policies adopted by PepsiCo. Ltd.

Secondary objective To keep and account of Pepsi vender against its rival products such as Coke, Mineral Water & other beverages. To explore the reason which can give the rival products a cutting edge over Pepsi? To get an insight of consumer taste brand awareness and price sensitivity. To analysis the effectively of adopted marketing mixes with reference to SWOT analysis.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

INTRODUCTION OF PROJECT Beverage industry is one of the fast growing industries in India .It can be divided into two sections i.e. carbonated and non-carbonated. The carbonated drinks that can be further classified into cola, lemon orange, mango and apple segments. Marketing includes all the activities like promotion, distribution, advertising etc. To fulfill all the segments of consumers. Marketing is also to convert social needs into profitable opportunities. So this topic provides all the essentials to theoretical knowledge with practical knowledge and to inculcate the efficiency. It is also requirement for the company to improve their service and product quality for achieving their ultimate goal. As far as the soft drink market is concerned, it is facing the cutthroat competition because of the availability of a large number of indirect as well as direct competitors. Single company offers the soft drink to the market in different taste and flavors. In this industry entire range of flavors are produced by other competitors also. More often it becomes impossible to differentiate between the same flavors of two different brands when served in plane container, ranges also. All these factors together make the situation complicated. Besides both corresponding brands have the similar price.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

PRODUCT PROFILE
Product Category: Carbonated Soft Drinks

Brand Name: PEPSI-COLA

Type: Bottle and Cans

Size: 200ml, 300ml, 500ml, 1ltr, 2ltr

Information: Ingredients Information Nutrition Information

Ingredients : carbonated water, high fructose Information corn syrup, caramel color, sugar, Phosphoric acid, caffeine, citric Acid, natural flavors.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

PRODUCTS OF PEPSICO 1-PEPSI

2-MIRINDA

3-7 UP

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

4-MOUNTAIN DEW

5-SLICE

6-AQUAFINA

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

7-TROPICANA

8-NIMBOOZ

9-LEHAR NAMKEEM

10-KURKURE

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

11-ALIVA

12-LAYS

13-UNCLE CHIPP

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

LUCKNOW MARKET

PepsiCo is a soft drink produced and manufactured by PepsiCo. It is sold in many places such as retail stores, restaurants, schools, cinemas and from vending machines. PepsiCo is working with one head quarter and three territories. PepsiCo is working with more than one lake people those are joint directly and indirectly with the company. There are 12 distributors and 7 root agents always connect with the company and joint each and every corner of Lucknow with the company. Every year more than ten lake people take the test of PepsiCo. Pepsi should understand the expectations of people If one wants to grow in FMCG sector one should keep the following factors in mind that the products are easily available to the consumers, to improve the quality of products from time to time, competitive services should be provided to the retailers, the price of the product should be low and last but not the least the visibility and the promotional strategy should be such that it hits peoples mind.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

HIERARCHY OF PEPSI

G.M

GENERAL MANAGER FRANCHISEE MANAGER TERRITORY DEVELPOMENT MANAGER AREA DEVELOPMENT MANAGER CUSTOMER EXECUTIVE

F.M

T.D.M

A.D.M

C.E

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

RESEARCH METHODOLOGY
INTRODUCTION Business research can be defined as systematic and objecti v e process of gathering, recording and analyzing data that provides information to guide business decisions. It is used either to understand market trends, to find the optimal marketing mix, to devise effective HR policies, or to find the best investment options.

ROLE OF BUSINESS RESEARCH IN DECISION-MAKING For effective planning and implementation of business decisions, accurate information about the internal and external business environments is of primary importance. The key objective of business research is to provide accurate, relevant, and timely information to the top management, so that they can make effective decisions. The business decision-making process in an organization going through the following key interrelated stages

Problem/opportunity Identification Problem/opportunity prioritization and selection Problem/opportunity resolution

Implementing the selected course of action Business Research helps the management in each of the Stages by providing useful and timely information.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

RESEARCH OBJECTIVE Study the distribution network of Pepsi. To comparatively analyses the stock of Pepsi and Coke with retailers of Pepsi. To study the retailers satisfaction. To find out the way to enhance the sale of Pepsi.

RESEARCH DESIGN A research design is the arrangement of conditioned for collection and analysis of data in a manner that aims to combine relevance to the research purpose which economy in procedure. Main characteristics of research designcan be summarized in two words1- Anticipation 2 Specifications

My research design is DISCRIPTIVE RESEARCH DESIGN In my research, researcher has conducted a market Survey of the AntiPepsi/Pepsi Outlets in Lucknow area. TYPE OF RESEARCH: The basic types of research are as follows: 1 . Descriptive research: The major purpose of this research is description of the state of affairs as it exists at present. 2 . Analytical Research:

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

In this research, the researcher has to use facts or inf o r ma t i o n a l r e a d y available these to make, and analyze these to make a critical evaluation of the material. 3 . Applied research: It aims and finding a solution for an immediate problem facing a society or an industry/business organization. 4 . Fundamental research: It mainly concerned with generalization & with the Formulation of a theory. 5 . Quantitative Research: I t i s b a s e d o n t h e me a s u r e me n t o f q u a n t i t y o r a mo u n t . I t i s a p p l i c a b l e t o phenomena that can be Expressed in terms of quantity. 6 . Qualitative Research: It is concerned with the qualitative phenomenon, i.e., phenomena relating to or involving or king. 7 . Conceptual Research: It is related to some abstract ideas or theory. 8 . Empirical Research: It is data- based research, coming with conclusions which are Capable of being verified by the observation and experiment. 9 . Diagnostic Research: Such a research follow case-study method or in depth approaches to reach the basic casual relation. 1 0 . Exploratory Research: The objective of this research is the development of hypothesis rather than their testing.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

STEPS IN RESEARCH PROCESS UNDER RESEARCH METHODOLOGY

SELECTING THE SAMPLING PROCEDURE IDENTIFYING &DEFINING PROBLEM/OPPORTUNITY PLANNING THE RESEARCH DESIGN SELECTING A RESEARCH METHOD

DATA COLLECTION
EVALUATING THE DATA PREPARING AND PRESENTING THE RESEARCH REPORT

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

PROJECT ANALYSIS Project PROMOTIONAL STRATEGIES ADOPTED BY PEPSI FOR BOOSTING SALE

Description The trainee was required to find out those outlets which are either not selling Pepsi or selling in very less amount. Region for the project was LUCKNOW r e g i o n . Th i s p r o je c t w a s a i me d a t f i n d i n g o u t t h e s h o p s , wh i c h w e r e n o t promoting Pepsi and selling competitor brands. It was also aimed at knowing the reason for ant Pepsi behavior of outlets in the region, their requirements from company and willingness to sell Pepsi brands. Objective Main purpose for this project was to make management aware of the total no. Of outlets in their region which were not selling Pepsi. It was also to plan their new course of action keeping in mind the current market position of Pepsi as well as of Coke. This was viewing the market share of Pepsi in comparison of coke. This report gives information to management about the outlets uncovered by Pepsi and their requirements to the company. The market of its brand is excellent and is very successful to reach its brand in Lucknow. Overall the market of PepsiCo brand is good in comparison with coke. There are very few outlets which are not selling Pepsi brands.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

MODUS-OPERANDI The training format designed at PepsiCo was aimed at combing a particular area of city in specified time period to check the availability of PepsiCo-products. The training had to visit the entire location alone carrying with him details of location and outlet and outlet name. The research was done in a form of a questionnaire, which was to be filled by outlet owner. These questionnaires comprised of a 10 question designed to get an insight of market status and business opportunities of PepsiCo location. These research reports were being filled on weekly basis and further a new location was allotted to researcher for obtaining more data. Name of the outlets Address of the outlets Status of the outlet Cooling Equipment Sale of the outlet Brands on sale Requirement of outlet. Willingness to sale Pepsi. Reason for anti-Pepsi.

Name of the outlets: The trainee was to note down the name of the outlet Visited

Address of the outlet: Complete address of the outlets was to be noted by the trainee. Sale of the outlet Sale of the outlet was to be noted on per day basis.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

Brands on sale Check out the brands available at the outlet. Requirement of outlets Ask what the shopkeeper wants from the Company. Willingness to sale Pepsi To know if shopkeeper want to sell Pepsi or not. Reason for anti-Pepsi To know why shopkeeper is not selling/ selling less The Pepsi brand

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

COMPARATIVE ANALYSIS AND PEPSI STOCK SHARE

QUESTION 1- Which companies stock do you have? PEPSI COKE OTHER 14 70 16

INTERPRETATION:-According to my study 14% have Pepsi, 70% have coke, and 16%have others.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

QUESTION- 2 How many distributers (on an average month basis) visit your outlet for research purpose? PEPSI COKE BOTH 30 50 20

Sales
20 30

50

INTERPRETATION:-According to my study 30 % researchers from Pepsi, 50% from coke, and 20% from other beverages visit the store for collection of data.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

QUESTION 3:- Do you need more stock of Pepsi? YES NO 70 30

Sales

30

70

INTERPRETATION:-According to my study 70 % need Pepsi, 30% dont need Pepsi.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

QUESTION 4:- Is service provided by Pepsi is up to your satisfaction level or not? YES NO 35 65

Sales

35

65

INTERPRETATION:-According to my study only 35 % retailers have agreed to good quality of service from Pepsi and rest 65 % were not satisfied.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

QUESTION 5:- What is your parameter for judging the nature of sale? AVERAGE GOOD VERY GOOD 18 32 50

Sales

32 50

18

INTERPRETATION:-According to this study data have shown that only 50% Retailer were enjoying very good sale, 18% were having average sale and last 32% experienced good sales.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

QUESTION 6:-Does regular launching of new flavor in soft drink keeps market alive for the company? YES NO 70 30

Sales

30

70

INTERPRETATION:-As per the data obtained,70% retailers agreed to this market strategy of introducing new products, on the contrary 30% had negative opinion about it.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

QUESTION 7:-Do you think that C.S.R role played by company Helps in promoting their products? YES NO 40 60

Sales

40

60

INTERPRETATION:-As per the feedback given ,40% retailers feel that CSR has positive impact on sales promotion while 60 % retailer think that it is nothing to d o with sales.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

CONCLUSION
Pepsi is superior brand than Coca-Cola but from Sometime its market share has come down due to various reasons. In India the company is running with very fast speed. The popularity of Pepsi is better than coke. It has bright future. It has democratic and communicative style of functioning.

Conclusion has been drawn: Proper approach to the retailers at the time of tie ups is required. The retailers satisfaction is low. Company does not provide schemes properly. No provision for regular replacement of damage of bottles. Many complains of retailers does not listen by the company. Many retailers want monopoly but company does Not provide.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

RECOMMENDATION
PEPSI, the choice of youth is not coming up with something different to attract the young generation. Youth want something strong in cold drinks & thus prefers strong taste. Pepsi should come out with some extra strong taste to catch up maximum young generation & become Generation Next drink. The distribution Channel should be focused on General Stores because most of the people purchase soft drinks from general stores. The company should notify its consumers timely about non-presence of pesticides in the drink as peoples think that they still hold a large amount of them. Most of the elders in the family prefer soft drinks to Pepsi as they have general liking toward soft orange drinks. Unfortunately Marinada taste does not appeal them that much. So the company must come up with soft drinks with a better taste. The promotional policy of company has completely loss its sharpness which immediately needs restoration. So the need of hour is a more focused promotional policy through better advertisement and attractive hoardings at primary locations round the city. Better Schemes aimed at providing more benefits and incentives should be introduced for retailers with a provision of surprise gift packages on better performance. Better options in packaging such as take away cans should be introduced for all flavors offered ( Pepsi blue, Nimbooz, coke diet ) Increase the number of distributors in remote areas.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

LIMITATIONS
Time limitations. Area was specified. The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out. Some of the respondents were not co-operative & many seem to be having no interest. The possibility of biasness in feedback cannot be ruled out as each individual has its own preferences. The data can also get contaminated by a wrong feedback given by a distributed or retailer inspired by professional motives based on profits.

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

QUESTIONNIARE

NAME OF OUTLET:

NAME OF OWNER:

ADDRESS:

PHONE:

QUESTION 1:- How long you been enjoying cold Drink/beverages?

1 yea r 2 3 y e brands a r 3 4 y e a r

y e QUESTION 2:-How many a r Are aware off? 1 2

popular

of PepsiCo you

QUESTION 3:-Do you remember the latest commercial shown On T.V for Pepsi?
YE S N O

QUESTION 4:-What attribute of Pepsi attract you the most While making a purchase?
TA ST E PR IC E AVAIL ABILIT Y BRAND LOYALTY

LO QUESTION 5:-Which form of media has its maximum Reach to Customers?

T.V

PAPER

MAGA ZINE

HOAR DING

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

QUESTION 6:- Do you think that C.S.R role played by Company Helps in promoting their Products?
YES NO

QUESTION 7:-What is the core strength of any company Against Its competitors?
PRICE AVAILA BILITY BRAND IMAGE QUALITY yY

QUESTION 8:- Does launching of new flavor in soft drink keep the market alive for the company?
YES NO

QUESTION 9:-Are you interested in buying a newly introduced flavor or you will stick to your old one?
YES NO

QUESTION 10:-Are rates of Pepsi, justified as per its Quality or should different economical Packaging be there?
YES NO

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

BIBLIOGRAPHY
BOOKS:Marketing management- Philip kotler Research methodology- C.R Kothari Web sites: www.pepsico.com www.coco-cola.com www.google.com www.ask.com www.wikepedia.org www.sirpepsi.com

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032

THANK YOU

Ravi Verma. MBA- (2011-13) ROLL NO: 1116370032