Pepsi Project

Effectiveness Of Advertising And Sales Promotion
CHAPTER-1 GENERAL INTRODUCTION
MEANING OF SALES
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity. The seller or salesperson the provider of the goods or services completes a sale in response to an acquisition or to an appropriation or to a request. There follows the passing of title (property or ownership) in the item, and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership. Ideally, a seller agrees upon a price at which he willingly parts with ownership of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price, the sale remains valid and gives rise to an obligation to pay.
Sales Promotion
Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about lakhpati bano, win a tour to Singapore, 30% extra in a pack of one kg, scratch the card and win a prize etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have also observed in your neighbouring markets notices of winter sale, summer sale, trade fairs, discount up to 50% and many other schemes to attract customers to buy certain products. All these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures normally motivate the customers to buy more and thus, it increases sales of the product. This approach of selling goods is known as Sales Promotion. You have learnt about advertising and personal selling in the earlier lessons. Personal selling involves face-to-face contact with specific individuals, while advertising is directed towards a large number of potential customers. They also help in increasing sales of goods. Thus, advertising can be used as means of communication to inform potential customers about the incentives offered for sales promotion. Personal selling can as well include communication of the incentives to individual customers.
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OBJECTIVES OF SALES PROMOTION1

You have learnt that the main objective of sales promotion is to increase sales. However, there are also some other objectives of sales promotion. The objectives are:-
1. To introduce new products: Have you ever heard about distribution of free samples? Perhaps you know that many companies distribute free samples while introducing new products. The consumers after using these free samples may develop a taste for it and buy the products later for consumption.
2. To attract new customers and retain the existing ones: Sales promotion measures help to attract or create new customers for the products. While moving in the market, customers are generally attracted towards the product that offers discount, gift, prize etc on buying. These are some of the tools used to encourage the customers to buy the goods. Thus, it helps to retain the existing customers, and at the same time it also attracts some new customers to buy the product.
3. To maintain sales of seasonal products: There are some products like air conditioner,
fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc. which are used only in particular seasons. To maintain the sale of these types of products normally the manufacturers and dealers give off-season discount. For example, you can buy air condition in winter at a reduced price. Similarly you may get discount on winter clothes during summer
4. To meet the challenge of competition: Todays business faces competition all the
time. New products frequently come to the market and at the same time improvement also takes place. Therefore sales promotion measures have become essential to retain the market share of the seller or producer in the product-market.
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TOOLS OF SALES PROMOTION2

To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of the commonly used tools of sales promotion.
1. Free samples: You might have received free samples of shampoo, washing powder, coffee
powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers.
2. Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bourn vita,
toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers.
3. Exchange schemes: It refers to offering exchange of old product for a new product at a
price less than the original price of the product. This is useful for drawing attention to product improvement. Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500 or exchange your black and white television with a colour television are various popular examples of exchange scheme.
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4. Price-off offer: Under this offer, products are sold at a price lower than the original price.
Rs. 2 off on purchase of lifebuoy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler etc. is some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market.
5. Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product
or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. For example, you might have come across coupons like, show this and get Rs. 15 off on purchase of 5 kg. of Annapurna Atta. The reduced price under this scheme attracts the attention of the prospective customers towards new or improved products.
6. Fairs and Exhibitions: Fairs and exhibitions may be organized at local, regional, national
or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. International Trade Fair in New Delhi at Pragati Maidan, which is held from 14th to 27th November every year, is a well known example of Fairs and Exhibitions as a tool of sales promotion.
7. Trading stamps: In case of some specific products trading stamps are distributed among
the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of require value.
8. Scratch and win offer: To induce the customer to buy a particular product scratch and
win scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers.
9. Money Back offer: Under this scheme customers are given assurance that full value of the
product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market.
The difference between Sales and Marketing3

Many people mistakenly think that selling and marketing are the same - they aren't. You might already know that the marketing process is broad and includes all of the following: Discovering what product, service or idea customers want. Producing a product with the appropriate features and quality. Pricing the product correctly. Promoting the product; spreading the word about why customers should buy it. Selling and delivering the product into the hands of the customer. Let's think about this question for a moment. Without marketing you would not have prospects or leads to follow up with, but yet without a good sales technique and strategy your closing rate may depress you. Marketing is everything that you do to reach and persuade prospects. The sales process is everything that you do to close the sale and get a signed agreement or contract. Both are necessities to the success of a business. You cannot do without either process. By strategically combining both efforts you will experience a successful amount of business growth. However, by the same token if the efforts are unbalanced it can detour your growth. Your marketing will consist of the measures you use to reach and persuade your prospects that you are the company for them. It's the message that prepares the prospect for the sales. It consists of advertising, public relations, brand marketing, viral marketing, and direct mail.
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The sales process consists of interpersonal interaction. It is often done by a one-on-one meeting, cold calls, and networking. It's anything that engages you with the prospect or customer on a personal level rather than at a distance. Your marketing efforts begin the process of the eight contacts that studies show it takes to move a prospect or potential client to the close of the sale. If marketing is done effectively you can begin to move that prospect from a cold to a warm lead. When the prospect hits the "warm" level it's much easier for the sales professional to close the sale.
MEANING OF ADVERTISING4
Advertising is a form of communication used to encourage or persuade an audience (viewers, readers or listeners) to continue or take some new action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as websites and text messages.
EFFECTIVENESS OF ADVERTISING
The advertising industry, as a whole, has the poorest quality-assurance systems and turns out the most inconsistent product (their ads and commercials) of any industry in the world. This might seem like an overly harsh assessment, but it is based on testing thousands of ads over several decades. In our experience, only about half of all commercials actually work; that is, have any positive effects on consumers purchasing behavior or brand choice. Moreover, a small share of ads actually appears to have negative effects on sales. How could these assertions possibly be true? Dont advertising agencies want to produce great ads? Dont clients want great advertising? Yes, yes, they do, but they face formidable barriers. Unlike most of the business world, which is governed by numerous feedback loops, the advertising industry receives little objective, reliable
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feedback on its advertising. First, few ads and commercials are ever tested among consumers (less than one percent, according to some estimates). So, no onenot agency or clientknows if the advertising is any good. If no one knows when a commercial is good or bad, or why, how can the next commercial be any better? Second, once the advertising goes on air, sales response (a potential feedback loop) is a notoriously poor indicator of advertising effectiveness because there is always so much noise in sales data (competitive activity, out-of-stocks, weather, economic trends, promotional influences, pricing variation, etc.). Third, some of the feedback is confusing and misleading: agency and client preferences and biases, the opinions of the clients wife, feedback from dealers and franchisees, complaints from the lunatic fringe, and so on.
BARRIERS TO GREAT ADVERTISING5

Advertising testing could provide a reliable feedback loop and lead to much better advertising, but many obstacles stand in the way. The first great barrier to better advertising is self-delusion. Most of us believe, in our heart-of-hearts, that we know what good advertising is and that there is no need for any kind of independent, objective evaluation. Agencies and clients alike often think that they know how to create and judge good advertising. Besides, once agencies and clients start to fall in love with the new creative, they quickly lose interest in any objective evaluation. No need for advertising testing. Case closed.
Strangely, after 40 years of testing advertising, we cannot tell you if a commercial is any good or not, just by viewing it. Sure, we have opinions, but they are almost always wrong. In our experience, advertising agencies and their clients are just as inept at judging advertising as we are. It seems that none of us is smart enough to see advertising through the eyes of the target audience, based purely on our own judgment.
A second barrier to better advertising is the belief that sales performance will tell if the advertising is working. Unless the sales response to the advertising is immediate and overwhelming, it is almost impossible to use sales data to judge the effectiveness of the advertising. So many variables are beyond our control, as noted, that its impossible to isolate the
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effects of media advertising alone. Moreover, some advertising works in a few weeks, while other advertising might take many months to show positive effects, and this delayed response can confound our efforts to read the sales data. Also, advertising often has short-term effects that sales data might reflect, and long-term (years later) effects that most of us might easily overlook in subsequent sales data. Because of these limitations, sales data tends to be confusing and unreliable as an indicator of advertising effectiveness.
Sophisticated marketing mix modeling is one way to measure these advertising effects on sales, but it often takes millions of dollars and years of effort, and requires the building of pristine databases of sales information along with all of the marketing input variables. Few companies have the budget, the patience, the accurate databases, and the technical knowledge necessary to succeed at marketing mix modeling. Even so, marketing mix modeling does not help us evaluate the contribution of a single commercial but rather the cumulative effects of many different commercials over a long period of time. Also, marketing mix modeling does not tell us why the advertising worked, or failed to work. Was it message, or media weight, or media mix that made the advertising effective? Generally, marketing mix modeling cannot answer these types of questions. So, again, sales data is of limited value when you make critical decisions about your advertising. A third barrier to better advertising is a pervasive tendency of many (but not all) advertising agencies to delay, undermine, and thwart efforts to objectively test their creative babies. Who wants a report card on the quality of their work? Its very threatening. The results can upset the creative folks. The results can upset clients. The agency can lose control. Agencies can be quite creative in coming up with reasons to avoid copy testing. Some of our favorites:
Theres no time. We have to be on air in five days, so well just have to skip the testing. These ads are built on emotion and feelings, and you cant measure such delicate, artful subtleties.
Weve already tested the ads with a focus group during the development process. These are image ads, and you cant test imagery with standard advertising testing techniques. We have so much equity in this campaign that it doesnt matter what the testing results are. We cant afford to change. Were in favor of testing, but lets remove those questions about purchase intent and persuasion from the questionnaire. We are in a new age, with new media and new messages, and none of the old copy testing measures apply any more. The fourth barrier to more effective advertising is the big creative ego. The belief that only creative in the agency can create advertisingand the conviction that creativity is their exclusive domainconstitute a major barrier. Great advertising tends to evolve over time, with lots of hard work, fine-tuning, and tinkeringbased on objective feedback from target consumers. Big creative egos tend to resist such evolutionary improvements. We have seen great campaigns abandoned because agencies would not accept minor tweaks to the advertising. To be fair, big egos are not limited to advertising agencies. Big client egos can also be a barrier to good advertising. Research firm egos are yet another problem. Big egos create barriers because emotion is driving advertising decision making instead of logic, reason, and consumer feedback. Big egos lead to bad advertising. A fifth barrier to better advertising is the widespread belief that ones major competitors know what they are doing. So, just copy the advertising approaches of the competition, and success will surely follow. We recently had a client who was about to copy the advertising strategy of a major competitor, but we were able to persuade the client to test all major competitive commercials as a precaution before blindly copying the competitors advertising approach. This competitor was the industry leader in market share and profitability. Our testing quickly revealed
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that this industry leader was the industry leader in spite of its bad advertising. The testing also revealed that another competitor, in contrast, had great advertising. Needless to say, the clients desire to copy the industry leader quickly vanished.
The sixth barrier to better advertising is lack of strategy, or having a poor strategy. The client is most often at fault here. The client has not done his homework, has not thought deeply about his brand and its future, and has not developed and tested strategy alternatives. The client tells the agency to go forth and create great advertising, without providing any strategy guidelines. The agency is left to guess and speculate about strategy. Great advertising is rarely created in a strategy vacuum. If the client cannot define a sound strategy, the agency cannot create great advertising. Again, the responsibility for strategy falls squarely on the client.
A seventh barrier to better advertising is client ineptness. Some clients processes, policies, and people tend to discourage the creation of great advertising. Arrogance, ambiguity, impatience, ignorance, risk aversion, and inconsistency tend to be the hallmarks of these agency killer clients. Bad clients rarely stimulate or tolerate great advertising.
The eighth and last barrier to better advertising is poor copy testing by research companies. Many advertising testing systems are limited to a few markets (and cannot provide representative samples). Some systems are so expensive that the cost of testing exceeds the value of the results. Research companies have been guilty of relying on one or two simplistic measures of advertising effectiveness, while completely ignoring many other very important variables. For instance, for several years research companies argued publicly over which was more important, persuasion measures or recall measures. The truth is that both are important, but of greater import is the fact that neither of these measures alone, or in combination, measures advertising effectiveness. To judge the effectiveness of an ad, many different variables must be measured and considered simultaneously.
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CREATING BETTER ADVERTISING

Given all of these barriers to better advertising, how can client, agency, and research company work together to create more effective advertising?
The client must craft a sound strategy for its brand, based on facts, not wishful thinking and self-delusion. The client must carefully define the role of advertising in the marketing plan and set precise communication objectives for the advertising. What exactly does the client want the advertising to convey, to accomplish? Agencies are too often asked to create advertising in an informational vacuum. Agencies are not miracle workers As creative executions are developed against the strategy, each execution should be pretested among members of the target audience (pretesting refers to testing advertising before it is aired, and/or before final production. When the term testing is used in this article, it is a shorthand term for pretesting.) The greater the number of executions pretested, the more likely it is that great advertising will emerge. Testing the creative provides a reliable feedback loop that helps agency and client alike become smarter over time. Once a conceptual family of commercials is identified as the optimal campaign of the future, then the campaign should be locked down. Long-term continuity of advertising message is essential to maximizing effectiveness. Use the same pretesting system consistently. There is no perfect advertising pretesting system. Some are better than others, but any system will help improve your advertising. The secret is to use one system over and over, so that everyone (client, agency, and researchers) learns how to interpret the pretesting results for the category and the specific brand.
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If budget permits, test the advertising at an early stage in the creative process (i.e., the storyboard or animatic stage) and also test at the finished commercial stage. Earlystage testing allows rough commercials to be tweaked and fine-tuned before you spend the big dollars on final production. Early-stage testing tends to be highly predictive of finished commercial scores, but not always. Testing the finished commercials gives you extra assurance that your advertising is on strategy and working. Build your own action standards over time. As you test every execution, you will begin to learn what works and what doesnt work. Think of the pretesting companys norms as very crude, rough indicators to help you get started with a testing program.
But, as quickly as possible, develop your own norms for your category and your brand (yes, all of the advertising effectiveness measures vary by product category and brand). What you are searching for, long-term, are not norms, but action standards (that is, the knowledge that certain advertising testing scores will translate into actual sales increases). Use a mathematical model to derive an overall score for each execution. It doesnt matter that an ad has great persuasion if it does not register the brand name. It doesnt matter that an ad registers the brand name if no one will notice the commercial itself. It doesnt matter that an ad increases short-term purchase interest if it will damage the brands quality reputation over time. So, all of the key variables must be put together intelligently to come up with a composite or overall measure of advertising effectiveness. Use the pretesting results as a guide, as an indicator, but do not become a slave to the mathematical model. Read all of the open-ended questions carefully. Make sure you
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really understand the underlying reasons. Base your decisions on this comprehensive assessment of the results, and leave yourself some wiggle room. Client and agency need to accept that continuous improvement of the advertising is an important goal. This means that every execution is tested and tweaked based on scientific evidence from the target audience. We are not talking about changing the strategy or changing the campaign, but making sure that every execution is on strategy and working as hard as possible. The ultimate goal of testing is an advertising success formula that works. That is, the goal of advertising creative development, and the goal of advertising testing, is to identify the elements/ideas essential to advertising effectiveness, and then to make sure that those elements/ideas are consistently communicated by all advertising executions.
THE POWER OF ADVERTISING We believe in the power of advertising, based on thousands of studies in our archives. Advertising has the power to persuade, the power to influence the mind and shape destiny. It has the power to change markets and improve profit margins. Advertising has short-term power (conveying new information, building awareness, enhancing credibility, etc.) and long-term power (conveying brand image, attaching emotional values to the brand, building positive reputation, etc.). The great power of advertising is seldom achieved in practice, but we cant give up. The potential and the promise are too great. The companies that master the creative guidance and the testing systems to consistently develop and deploy great advertising will own the future and the fortunes that go with it. Great advertising is a cloak of invincibility.
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TYPE OF ADVERTISING6
Television advertising / Music in advertising

The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3.5 million (as of 2012). The majority of television commercial features a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none exist in real-life. This technique is especially used in televised sporting events. Virtual product placement is also possible.
Infomercials
An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial is combination of the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.
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Radio advertising Radio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage. Radio is an expanding medium that can be found not only on air, but also online. According to Arbitron, radio has approximately 241.6 million weekly listeners, or more than 93 percent of the U.S. population.
Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Online ads are delivered by an ad server. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing,
including e-mail spam.
Product placements
Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale.
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Press advertising Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service. Another form of press advertising is the Display Ad, which is a larger ad (can include art) that typically run in an article section of a newspaper.
Billboard advertising Billboards are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums.
Mobile billboard advertising

Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including: Target advertising, One-day, and long-term campaigns, Conventions, Sporting events, Store openings and similar promotional events, and Big advertisements from smaller companies.
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In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters (aka POPPoint Of Purchase display), eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.
Coffee cup advertising

Coffee cup advertising is any advertisement placed upon a coffee cup that is distributed out of an office, caf, or drive-through coffee shop. This form of advertising was first popularized in Australia, and has begun growing in popularity in the United States, India, and parts of the Middle East.
Street advertising
This type of advertising first came to prominence in the UK by Street Advertising Services to create outdoor advertising on street furniture and pavements. Working with products such as Reverse Graffiti, air dancer's and 3D pavement advertising, the media became an affordable and effective tool for getting brand messages out into public spaces.
Celebrity branding
This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products, for example, when celebrities share their favorite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. The use of celebrities to endorse a brand can have its downsides, however. One mistake by a celebrity can be detrimental to the public relations of a brand. For example, following his performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to associate with him after he was photographed smoking marijuana.
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TYPE OF SINAGE GIVEN FOR ADVERTISING IN INDIA

G.S.B:- its a type of signage for advertising provided by company to the retailers for advertising in night. PLAX BOARD:-its a type of signage for advertising provided by company to the retailers for advertising at day time. OWNING:-its a type of signage for advertising provided by company to the retailers for advertising. And it also protect from sun rays. UMBRELLA: - its a type of signage for advertising provided by company to the retailers for advertising. RAC: - its a type of signage for advertising provided by company to the retailers for advertising. WALL-PAINTING: - its a type of signage for advertising provided by company to the retailers. PCI (REFRIGERATOR):- its a type of signage for advertising provided by company to the retailers.
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(UMBRELLA)
(PLAX BOARD)
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(WALL- PAINTING)
(G.S.B)
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(PEPSI REFRIGERATOR)
(RAC)
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HOW ADVERTISING HELPS IN SALES7 1. Selling Direct - Some products can be sold directly from an ad or direct mail solicitation.
This is especially true now that the Internet has made it possible to buy products on line with a credit card. Selling direct works are best for products that have clearly defined benefits and are not available through retail outlets. They need to have some degree of inherent excitement and must be priced under $1,000. It also works well for supplies and other commodity items that can be grouped by category and offered in a catalog format. There are literally millions of websites using this approach.
2. Generate Sales Leads - For smaller firms with limited budgets the best use of
marketing communications is to generate immediate business leads that can be converted to sales. This type of ad encourages response by making a free offer of some type - usually a free white paper, a free initial consultation, free estimate, free evaluation of a problem, or other free information. Sometimes leads are overlooked by busy advertising managers, but when handled and funneled properly to the sales team, they can add tens of thousands, even hundreds of thousands of dollars to a company's gross sales each year.
3. Educate Your Prospects - Advertising can communicate information about your

product, your service, your business philosophy, your way of doing business, or your unique approach to solving the customer's problems. A typical example is a wireless equipment manufacturer whose product is differentiated from the competition such as DSL or cable modems because their product makes it possible to connect to the Internet and roam anywhere, not just a fixed location where old fashioned wired computer ports are located. Advertising would highlight this key difference, explain why it was chosen and how it works, and stress the benefits of this type of network (better performance, higher reliability, greater effectiveness, lower operating costs, etc.) to the reader. Service businesses are often successful with an even purer educational approach, in which advertising tells the reader about a subject in general, only briefly referring to the firm's particular services. One successful ad, for a mortgage finance company, had the headline, "Nine questions to ask before you chose a mortgage or refinance firm - with a good answer to
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each question." The copy was filled with facts about the methods and techniques used to find the best lenders to finance a home purchase. Readership was high because the ad presented valuable information of immediate use to the reader. Response was high because, by giving this information instead of a blatant sales pitch, the copy convinced readers that the advertiser was someone who could help them.
4. Create Awareness - There are so many products, services and ideas on the market
today that a big part of an advertiser's job is to simply make people aware that you offer a particular solution to their problems. A good example would be the Broadband Wireless Exchange (BWE) web portal, which in 2001 was the only website available that taught people how to build broadband wireless networks. BWE did not need to convince prospects that their site was better than the competition, because they had no direct competitors. BWE's only challenge was to make potential customers aware that building broadband wireless networks was much more cost effective than building wired networks, BWE is a recognized authority and expert in building these types of networks and they had consulting teams available for hire. With only a small amount of Internet advertising and several good press releases, the BWE website became the Internet's #1 source for wireless networking information.
5. Establish Credibility - Establish credibility with information sources just like this one.
By providing some web editorial on how to do effective advertising, we build credibility with our clients that need these types of services. Providing helpful information to potential clients that helps them make better buying decisions is a good way to begin building a relationship with a future customer.
6. Keep Your Name in Front of the Public - Repeat advertising in select media can
help build familiarity with your company's name and establish your identity. In order to convince a customer to do business with you, you must first cross their "threshold of consciousness." The first time a prospect sees you, they may not recognize you. The second time, they might think they have seen your name before. But on the third time, most prospects will begin to remember your name and what your company stands for. Advertising costs money. And building awareness through the use of paid advertising can get expensive quickly.
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CHAPTER- 2 INDUSTRY PROFILE
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EXTERNAL ENVIRONMENTAL ANALYSIS

Political Issues A typical challenge in the Indian beverage sectors fight against corruption is the complex interrelationship between politics and the private sector. Strong governance is clearly vital for companies to ensure the integrity of their organizations, relationships with consumers and government authorities to avoid corrupt business practices. Companies should look to providing more transparency and accountability in terms of the selection of board members, remuneration, links between remuneration and performance, diversity of the board and decision making processes. Environmental Issues Companies need to first assess to what extent they and their suppliers depend on water and the associated risks. This should be done in consultation with key stakeholders. Companies should measure their water footprint and look to how they can best manage water resources through enhanced processes and infrastructure. Companies should implement rigorous water testing and monitoring systems and install treating equipment. Water pollution and treatment is already a focus of Asian listed companies and with the growing emphasis on regulation and enforcement this looks set to increase. Companies need to realize that global commitments to improve water efficiency can only be implemented locally, requiring versatility and local management support. Companies should disclose water performance and the initiatives that they are putting in place. Companies need to assess their contribution to climate change, put in place measures to reduce emissions and waste and report on progress.
Social Issues
Soft drink companies are advised to anticipate government regulations, particularly in relation to their marketing approaches to children. Companies need to be innovative in creating healthier soft drink products as in the case of PepsiCo and Coca Cola focusing on a low sugar, natural sweetener for their products and Vietnamese and Chinese brands tapping into the demand for alternatives to carbonated soft drinks.
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Companies should assess their supply chain risks and put in place codes of conduct, monitoring and capacity building initiatives to prevent these. As consumers become more aware of supply chain issues, good supply chain management can create a competitive advantage. Companies that rely on agricultural supply chains, particularly large numbers of small holding farmers, should look to developing partnerships with government, local NGOs and international agencies to better manage social risks.
Technical issues
It creates opportunities for new products and product improvements and of course new marketing techniques- the Internet, e-commerce.
THE INDUSTRY FOR SOFT DRINKS IS CHARACTERIZED BY THE FOLLOWING FIVE FORCES:
1. Threat of New Entrants - The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include: Threat of new entrants is low because competitors are less. Logistics requirement and infrastructure are very high. High fixed costs Scarcity of resources High costs of switching companies Government rules and regulations
2. Power of Suppliers - This is how much pressure suppliers can place on a business. If one
supplier has a large enough impact to affect a company's margins and volumes, then it holds substantial power. Here are a few reasons that suppliers might have power:
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Power of suppliers is moderate and low There are very few suppliers of a particular product There are no substitutes Switching to another (competitive) product is very costly The product is extremely important to buyers can't do without it. Its similar to consumer.
3. Power of Buyers - This is how much pressure customers can place on a business. If one
customer has a large enough impact to affect a company's margins and volumes, then the customer hold substantial power. Here are a few reasons that customers might have power: Power of buyers is low. Purchases large volume Switching to another (competitive) product is simple The product is not extremely important to buyers; they can do without the product for a period of time Customers are price sensitive
4. Availability of Substitutes - What is the likelihood that someone will switch to a competitive product or service? If the cost of switching is low, then this poses a serious threat. Here are a few factors that can affect the threat of substitutes: Availability of substitutes is less. The main issue is the similarity of substitutes. For example, if the price of coffee rises substantially, a coffee drinker may switch over to a beverage like tea. If substitutes are similar, it can be viewed in the same light as a new entrant.
5. Competitive Rivalry - This describes the intensity of competition between existing firms in an industry. Highly competitive industries generally earn low returns because the cost of competition is high. A highly competitive market might result from:
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Competition is less because of less number of players. Many players of about the same size; there is no dominant firm Little differentiation between competitors products and services A mature industry with very little growth; companies can only grow by stealing customers away from competitors
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INDUSTRY HISTORY AT GLOBAL MARKETS
A beverage is a drink specifically prepared for human consumption. Beverages almost always largely consist of water. Drinks often consumed include: Water (both flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy drinks, Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy products like milk. Commonly, drinks are filled into containers, like glass or plastic bottles, steel or aluminium cans as well as cardboard supported packages, like the "Tetra Pack" or others. Filling of beverages can be done cold, hot, ambient and cold-aseptic filling to mention the latest trend of beverage marketing and technology. The beverage is mainly based upon the non-alcoholic nature of the drink. Non-Alcoholic beverages are further o two types based upon carbon content. These beverages contain Fruit juices, Coffee, Tea, Soda, Cola
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INDIAN BEVERAGES INDUSTRY

India has a population of more than 1.150 Billions which is just behind China. According to the estimates, by 2030 India population will be around 1.450 Billion and will surpass China to become the World largest in terms of population. Beverage Industry which is directly related to the population is expected to maintain a robust growth rate. The Indian beverage market offer shot options. According to Dabur, the fruit beverages industry in India now stands at Rs 100 crores (approx. Euro 180 million) and the market has grown at the rate of 30% where Dabur India, through the new launch Real Burrst, is looking at establishing a market share of 4-5% in next 2-3 years. Part of the industry of fast moving consumer goods is also the beverage industry. The total beverage industry in India is being estimated to grow at 17% this year, according to experts. "Food and beverages segment has not suffered despite the slowdown in the economy. FMCG in our stores has done very well. In fact, we registered 10-15% growth in this segment last year," said a spokesperson at Spencer's Retail Ltd. Beverage majors like Coca Cola India, for example, again reported growing sales. Coca-Cola in India reported a solid first quarter 2009 results not only despite a challenging economic environment, but also with unit case volume increasing by 31%. And eight quarters out of the 11 quarters had a double-digit growth. To foreign observers of the market, these figures might sound unbelievable, as Western markets are saturated and have not seen such figures for long time. But in India, various positive factors drive the beverage markets. One is the rising number of people in the middle class with extra money to spend on new beverages like wine, new brands of imported whiskey, or the fancy energy drinks, some of which are really good to enable people to work longer, to listen longer during conferences, and even to party longer and have fun. Leader in this segment is Red Bull, but some other good and very effective drinks one even very healthy - are already or soon entering the market. Another factor is the sheer size of the number of people in India. Even the rural households, as long as the monsoon is good, get purchasing power and can participate in consumer markets. Where ever the purchasing power is still not big enough, companies offer smaller packs for Rs.
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10 or Rs. 5, especially to be seen in the snack market. Hot summers in India also help a bit to sell beverages. The large untapped market potential for store-bought non-alcoholic beverages, in particular carbonated beverages, juice based drinks and energy or sports drinks among urban/suburban consumers in India. Approximately 120 billion litres of beverages are consumed by Indians every year, but only 5% represent store-bought packaged beverages. The majority of Indian consumers (75%) still consume non-alcoholic store-bought beverages less than once a day, highlighting a large untapped market opportunity, particularly in the carbonated drinks and juice or juice-based categories (estimated to be worth $1.5 Billion and $.25 billion respectively). In order to increase consumption and penetration of such beverages manufacturers will have to address the two primary reasons why some Indians abstain entirely, that is, health concerns and undesirable taste. The study investigates consumption frequency and habits, the importance of various product attributes, and brand preferences across age, household income, city in India and beverage category. This study has implications for manufacturers, distributors, retailers and investors hoping to capitalize on the growth of these beverage categories in India and distinguish themselves in the increasingly crowded marketplace. India is a booming market for the beverage industry as well. It already accounts for about ten per cent of global beverage consumption today. This means that the country has the third-largest beverage consumption after the USA and China. But that is not the end of the road. Market analyses indicate that beverage sales in India will be increasing by more than 60 per cent between 2008 and 2012. Since India is (still) a country of tea and coffee drinkers, packaged cold drinks have enormous potential. Packaged water, beer and carbonated drinks are recording what rates are in some cases high double-digit growth. All in all, annual per capita consumption of packaged beverages is supposed to triple from 2.6 litres in 2000 to 8.7 litres in 2012.
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Demand for milk and milk-based beverages are also rising. India is the worlds biggest producer and consumer of milk, since milk plays a major role in the Indian diet. The consumption of milk and milk-based beverages has increased by an annual average of 2.7 per cent in the last four years and most of them (65 per cent) are sold loose / unpackaged. The proportion of the market accounted for by packaged milk and dairy products are increasing, however. In the past four years, for example, demand for milk filled in pouches has grown by 4.5 per cent annually, while the figure for milk in cartons is about 25 per cent. The rising consumption is making it necessary for appropriate investments to be made by the beverage industry. The sector is highly fragmented and 95 per cent of these producers have small or very small operations. Of this, the health beverage industry is valued at $230 million. The Indian beverage industry faces over supply in segments like coffee and tea. However, more than half of this is available in unpacked or loose form. Indian hot beverage market is a tea dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in preferred in western India. The urban-rural split of the tea market was 51:49 in 2000. Coffee is consumed largely in the southern states. The size of the total packaged coffee market is 19,600 tonnes or $87 million. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during offseason. The market is predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. Mineral water market in India is a 65 million crates ($50 million industry. On an average, the monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during peak season.
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SHARE OF VOLUME BY BEVERAGE CATEGORY OF INDIA
Years
12.00% 10.00%
Milk
Tea
Share%
8.00% 6.00% 4.00% 2.00% 0.00% 2006 2007 2008 2009 2010 2011
Distilled Spirits Coffee Bottled Water
Carbonated Soft Drinks
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INDIAN BEVERAGE MARKET
SHARE OF VOLUME BY CATEGORY Segment Milk Tea Bottled Water 2006 10.3% 6.3% 0.2% 2007 10.4% 6.4% 0.2% 2008 10.5% 6.5% 0.3% 2009 10.6% 6.6% 0.4% 2010 10.8% 6.4% 0.4% 2011 11.1% 6.5% 0.4%
Coffee Carbonated Soft Drinks Fruit Beverages SUBTOTAL All Others* TOTAL
0.2% 0.2%
0.2% 0.2%
0.2% 0.2%
0.2% 0.1%
0.2% 0.2%
0.2% 0.2%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
17.2% 82.8% 100.0%
17.4% 82.6% 100.0%
17.7% 82.3% 100.0%
17.9% 82.1% 100.0%
18% 82% 100.0%
18.4% 81.6% 100.0%
Source: Beverage Marketing Corporation
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PER CAPITA CONSUMPTION IN INDIA
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Key Figures on Indian Beverage Industry

Indian Beverage Market CAGR[2007-2010]:21% India ranked 3rd in largest beverage consumption after the USA and China Total Indian Beverage Consumption every year:120 billion litres Fruit Beverages Market size: Rs1100 crores (approx. Euro 180 million) Fruit Beverage market growth rate: 30% Majority of Indian consumers:75% consume Non-alcoholic beverages Carbonated Drinks Market size: $1.5 Billion Juice or juice-based Drinks Market size: $.25 billion Health beverage industry is valued at $230 million Indian Beverage Industry is 10% of Global beverage consumption today. Milk-based beverages consumption has increased by an annual average of 2.7 per cent in the last four years Total packaged coffee market size: 19,600 tonnes or $87 million. The Indian soft drink market is worth Rs. 21,600 million a year with a growth of around 7%. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. Peak season soft drink consumption : 25 million Off-season soft drink consumption: 15 million The market is predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. Indian Mineral water market size 50 million industry.
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Factors driving developments in the Indian Beverages

India is a growing and developing country which is having a very high economic growth with the drastic increase into the population size. Due to the developing economic condition, there is increase in the competition among the manufacturers, retailers, dealers to promote their products at competitive prices. The increase in the India population has given a high demand of beverage market products. The Indian beverage market is segmented into the two major segments Alcoholic and NonAlcoholic Beverages. Again these categories of beverages are sub-divided into the carbonated and fruit based drinks. Tea and Coffee also contributed majorly into the Beverage Industry. Indian Beverage market distribution and marketing channel is highly networked and has a very approach to the customers. Due to the globalization and technological developments there is highly innovative products are coming into the Indian Beverage markets which are appreciated by the Indian population. In India, here are various forms of beverage market get to be seemed in the form of retailers, Restaurants, Coffee shops, Sport events, Hotels etc.
There are certain factors which are driving developments into the Indian Beverage sector:

Economic growth Population growth Competition for Raw materials Power of retailers Globalization / Regionalization Research & Development Technological Developments Food safety and regulation Consumer Demands and trends
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PACKAGING OF BEVERAGES
The beverage industry is one among the front-liners where massive investments are being made for expansion and technological up gradation. The packaging of beverages both carbonated and non-carbonated, is a complex technological branch in the Food Processing /Packaging industry. The traditional returnable glass bottle has given way to newer plastic containers as well as cartons. The current trend is to improve the conventional containers, extend their share in the large market, extend the shelf-life of the products, provide greater consumer convenience and ultimately to produce economic packages. The changing Indian scenario, with implementation of various technologies and market promotion activities, has changed the scope for this industry exponentially. The Indian soft drink market is worth Rs. 21,600 million a year with a growth of around 7%. The soft drinks segment had grown to Rs. 1,05,000 million in the year 2005. The production of soft drinks has increased from 6230 million bottles in 1999-2000 to 6560 million bottles during the year 2001-2002. The alcoholic beverages industry, covers Indian Made Foreign Liquors (IMFL), country liquor and beer. IMFL includes Carbonated Beverages in PET Bottles wine, whisky, gin, rum, brandy and other white spirits. IMFL industry in India is roughly valued at Rs. 28,000 crores, growing at a rate of 9-10% per annum in volume terms. The Indian beer market estimated currently at Rs. 7,500 million a year has been growing at the rate of 15% per annum.
The packaging requirements for all types of beverages are: Absolutely leak-proof and prevent contamination Protect the contents against chemical deterioration No pick up of external flavors Be hygienic and safe Retain carbonation in the case of carbonated beverages Economical, easy to use and dispose Good aesthetic appearance
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BEVERAGES FOR HEALTH AND WELLNESS IN THE INDIAN MARKET

The global health and wellness trends in the beverage sector are beginning to notice an increasing level of activity in India.
Economic drivers: With strong economic drivers of consumer spending, India is a very different market from that of the 1980s or 1990s.With a GDP of USD800 billion and a GDP growth rate in 2005-06 of over 8 percent, India is now the third largest economy in Asia. And this has not been the result of some freak surge in growth. Average GDP growth of the last 10 years has been 6.5 percent per annum. And most significantly, the stepping up of GDP growth is driven primarily by domestic demand rather than exports. Demographic drivers: Macro economic factors tell only one part of the story. There are compelling demographic trends in the country that promise new and sustained opportunities for beverage product suppliers who can read right the signals. The country boasts an expanding middle class that is currently 350 million strong (a population larger than the total population of the United States or the European Union). Increased urbanization and rising disposable incomes are creating new and large target markets for beverage products that go beyond commodity status and command higher prices. The rapid growth in the retail sector (over 20 percent per annum) is just one confirmation of the increasing buying power of this middle class. There is today a growing health and wellness consciousness among consumers and an increasing importance given to fitness and healthy lifestyle choices. Changing work and lifestyle habits leave less time for home cooking and therefore spur demand for convenience and complete nutrition from meal replacements. There is a greater inclination to self-care rather than medicate, a greater awareness of the functional benefits of health beverages and a greater willingness to pay a premium for such beverages.
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INDIAN BEVERAGE MARKET PERSPECTIVES

With the overwhelming successes of the Green and White Revolutions, India is now fervently poised for the beverage revolution. The entry of multinationals, aggressive rise of commodity branding and low cost of technology is changing the economics of the Indian food & beverage industry. The rise of aggressive regional players making forays into categories where entry barriers are low and a boom in Indian beverage markets and the rising need for these products are the key reasons for this growth in beverage business. The soft drinks perspectives the demand is quite high in the category of carbonated drinks.
INDIAN BEVERAGE DISTRIBUTION & MARKETING NETWORK
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THE LEADING BEVERAGE COMPANIES AND THEIR COMPETITIVE BRANDS8
There are so many large companies present in India who are leading players in the Indian Beverages Industry. The companies are having large annual turnovers with wide range of product portfolios which include all kinds of beverage drinks from soda to energy drinks. These companies are having a large variety of products like soda, water, Colas, Fruit based drinks, Lemon based drinks, Milk beverages, and Fruit based wine, beer, Whisky, Coffee, and Tea etc. with so many health and energy drinks portfolio. These companies have a strong distribution and marketing channel which supply the beverages products to customers through retailers, Coffee shops, Restaurant, Hypermarket and Supermarkets. The segment is highly distributed all over the country through a long chain of retailers and suppliers who are providing very efficient service to the company. The leading Indian Beverage sector players are as follows: Coca-Cola Company PepsiCo Dabur India Ltd TATA Global Beverages Ltd [TATA Tea] Nestl India Caf Coffee Day Red Bull India Pvt. Ltd.
http://www.scribd.com/doc/36964993/Indian-Beverage-Industry-Report 42
PepsiCo India
Company Overview
PepsiCo entered India in 1989 and has grown to become one of the countrys 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 nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda 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, Tropicana 100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 36 bottling plants in India, of which 13 are company owned and 23 are franchisee owned. In addition to this, PepsiCos Frito Lay foods division has 3 state-of-the-art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. PepsiCos commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.
Brands Foods
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Beverages
COCA COLA COMPANY
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Company Overview
Established in 1886, Coca-Cola is the worlds most ubiquitous brand. The company and its subsidiaries are present in over 200 countries employing over 49,000 individuals and generating revenues to the tune of US$ 21 billion. The Coca-Cola Company markets four of the worlds top-five soft drink brands; its beverage products encompass nearly 400 brands, including noncarbonated beverages such as waters, juices, sports drinks, teas and coffees. The companys net income registered a CAGR of 7.2 per cent over a 10-year period. Till date, Coca-Cola has invested over US$ 1 billion in India and employs over 5,000 people. The Coca- Cola system in India comprises 25 wholly owned Bottling operations and another 35 franchisee-owned bottling operations. A network of 27 contract-packers also manufactures a range of products for the company.
Latest Update
Coca-Cola net revenue up 5%,July 2010 India sales jump 22%,July 2010 Net revenue of $8.26 billion July,2010
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DABUR INDIA LIMITED
Company Overview
Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves. the three major strategic business units (SBU) Consumer Care Division (CCD) Consumer Health Division (CHD) International Business Division (IBD) Financial Highlight leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09)
Dabur Products:
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RED BULL
Company Overview
In 1982, Dietrich Mateschitz became aware of products called "tonic drinks", which enjoyed widespread popularity throughout Far East. His idea to market these functional drinks outside Asia evolved whilst he sat at a bar at the Mandarin Hotel in Hong Kong.In 1984, Mateschitz founded Red Bull. He fine-tuned the product, developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. In 2008, Red Bull launched its own Cola: Red Bull Simply Cola Strong & Natural. Very much in line with the needs of today's consumers, Red Bull Cola - unlike traditional colas - only contains ingredients of 100% natural sources. In 2009, Red Bull extended its product portfolio with Red Bull Energy Shots: Starting in the USA, now gradually rolling out globally.Around 4 billion cans of Red Bull are consumed every year. The responsibility for the success of the world's No. 1 energy drink is shared by the comp any's 6,900 employees around the world. Today Red Bull has annual sales of approx. 4 billion cans in 160 countries.. As of the end of 2009, Red Bull employed 6,900 people in 160 countries (end 2008: 5,683 in 148 countries). Despite the ongoing difficulties presented by the global economic downturn, plans for growth and investment in the business year 2010 remain typically for Red Bull - very ambitious, but continue to rest on a solid and conservative financial footing.
RED BULLS PRODUCT:-
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CAF COFFE DAY
Company Overview
Caf coffee day is Indias favourite coffee shop where the young at heart unwind. Were a division of Indias largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company Limited (ABCTCL). Popularly known as Coffee Day, its a Rs. 750 crore, ISO 9002 certified company. With Asias second-largest network of coffee estates (10,500 acres) and 11,000 small growers, Coffee Day has a rich and abundant source of coffee. This coffee goes all over the world to clients across the USA, Europe and Japan, making us one of the top coffee exporters in the country. Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first caf at Brigade Road in Bangalore. Today, more than a decade later, Caf Coffee Day is the largest organized retail caf chain in India with cafes functioning in every nook and corner of the country. Drawing inspiration from this overwhelming success, Caf Coffee Day today has cafes in Vienna, Austria and Karachi. Whats more, new cafes are planned across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the near future.
Our Divisions

Coffee Day Fresh n Ground. Coffee Day Xpress.
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Coffee Day Take Away Coffee Day Exports Coffee Day Perfect
BEVERAGES
Hot Coffees- Cafe Latte, Cafe Mocha , Cappuccino, Irish Coffee, Macchiato, Solar Eclipse, Aztec, Black Coffee, Espresso, Ethiopian Cold Coffees- All Day Refresh.., Cafe Frappe, Chill O Coffee, Devils Own, Kaapi Nirvana, Mochachillo, Tropical Iceber... Hoteas- Darjeeling-Divi..., Lemon Demon, Assam Express, Masala Garam Frosteas- Lemon Freeze, Strawberry Choco-lattes- Choco Rocks, Hot Choco Latte Fruiteazers- Cool Blue, Green Apple Sod..., Lychee Chill, Mango Shake, and Strawberry Blus..., Black Currant B....
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NESTLE INDIA
Company Overview
Nestls relationship with India dates back to 1912, when it began trading as The Nestl AngloSwiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita.
Financial Highlight
Gross Sales 52,224.20 Rupees in Millions [2009] Net Sales Growth up to 21.3%
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BRANDS
BEVEARGES NESCAF CLASSIC
NESCAF CLASSIC has the unmistakable taste of 100% pure coffee and is made from carefully selected coffee beans picked from the finest plantations, blended and roasted to perfection. 100% coffee100% pleasure
NESCAF SUNRISE Premium

NESCAF SUNRISE Premium is an Instant Coffee-Chicory mixture (Coffee: Chicory = 70%:30%).A fine blend of Arabica and Robusta beans i s specially granulated to retain its fresh aroma and flavour, giving you an incomparable coffee experience.
NESCAF SUNRISE
NESCAF SUNRISE Special is an Instant Coffee-Chicory mixture (Coffee: Chicory = 60%:40%).A special blend of select Robusta coffee beans are specially roasted to give you great, stimulating coffee taste and aroma. And at a price that is so affordable
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NESCAF Cappuccino
The world's favourite instant coffee brand NESCAF brings two delicious new Cappuccino variants - NESCAF Choco Mocha and NESCAF Vanilla Latte. Treat yourself to its rich coffee taste and delicious froth. Comforting, relaxing - a delicious cup of NESCAF Cappuccino is a great way to enjoy a true caf experience at home.
NESTEA Iced Tea

New NESTEA Iced Tea with Green Tea brings natural, healthy goodness of Green tea into your glass. Green tea is a good source of NATURAL ANTIOXIDANTS which are known to protect body cells from damage caused by free radicals. Feel good everyday with the refreshingly light taste of NESTEA with Green Tea.
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NESTEA Instant Hot Tea Mixes

New NESTEA Instant Tea gives you a full-bodied, rich tasting cup of flavourful tea. Refresh yourself with a delicious cup anytime you want! New NESTEA Instant Masala Tea is a delicious cup of tea with the flavour of traditional Indian spices like ginger and cardamom. Refresh yourself with this aroma filled, great-tasting tea!
NESCAFE 3 IN 1
Introducing new NESCAF 3 in1 is a perfectly balanced mix of 100% pure instant coffee, skimmed milk and sugar that gives you a cup with great coffee taste and aroma. Go ahead; enjoy the taste of your favourite coffee anytime, anywhere! Available in two convenient packs the single serve sachet for Rs. 5/- as well as the stylish multi-pack, containing 5 sachets, for Rs. 25/-.
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TATA GLOBAL BEVERAGES LTD.
Company Overview
Set up in 1964 as a joint venture with UK-based James Finlay and Company to develop valueadded tea, the Tata Tea Group of Companies, which includes Tata Tea and the UK-based Tetley Group, today represent the world's second largest global branded tea operation with product and brand presence in 40 countries. Among India's first multinational companies, the operations of Tata Tea and its subsidiaries focus on branded product offerings in tea but with a significant presence in plantation activity in India and Sri Lanka. The consolidated worldwide branded tea business of the Tata Tea Group contributes to around 86 per cent of its consolidated turnover with the remaining 14 per cent coming from Bulk Tea, Coffee, and Investment Income. The Company is headquartered in Kolkata and owns 27 tea estates in the states of Assam and West Bengal in eastern India, and Kerala in the south. The company has a 100% export-oriented unit (KOSHER & HACCP certified) manufacturing Instant Tea in Munnar, Kerala, which is the largest such facility outside the United States. The unit's product is made from a unique process, developed in-house, of extraction from tea leaves, giving it a distinctive liquoring and taste profile. Instant Tea is used for light density 100% Teas, Iced Tea Mixes and in the preparation of Ready-todrink (RTD) beverages.
With an area of approx 15,900 hectares under tea cultivation, Tata Tea produces around 30 million kg of Black Tea annually.
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Financial Highlight Net Sales / Income from Operations: 41783 Rs in lakhs[2009]
BRANDS
The company has five major brands in the Indian market - Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini -- catering to all major consumer segments for tea. The Tata Tea brand leads market share in terms of value and volume in India and the Tata Tea brand is accorded "Super Brand" recognition in the country. Tata Tea's distribution network in the country with 38 C&F agents and 2500 stockists caters to over 1.7 million retail outlets (ORG Marg Retail Audit) in India.
Bulk Tea

All grades of CTC Teas All grades of Orthodox Teas Organic Tea - Orthodox grades
Teas are supplied in packaging as per ISO norms as well as customer requirements viz. 4-ply Kraft Paper Sacks, Multiwall Paper Sacks, Rigid T--Sacks, Polywoven Sacks, Currugated Fibre Carlons, Polylined Jute Bags etc.
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Instant Tea (All products are cold water soluble)

Instant Tea Division caters to customer specific product and are used for light density 100% Teas, Iced Tea Mixes and in the preparation of Ready to Drink (RTD) beverages. Instant Tea powder is packed in bulk packages of 20/25/35 kg each. TEA- Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini.
Coffee Tata's Coorg 100% Pure Filter Coffee

Coorg Pure is the connoisseurs' choice. It is becoming as much a part of the purist's morning as the sound of temple bells, suprabatham and the morning newspaper. A rich shot of the traditional hand-grinder, lit by shafts of morning light is a key image - that triggers off memories of a time when coffee was ground at home. It is the only brand of pure coffee available in triple laminate poly pack (seals in aroma and freshness) in the market.
Tata's Coorg Double Roast

Tata's Coorg Double Roast has become India's 2nd largest filter coffee-chicory brand. The brand has captured the hopes and aspirations of the archetypal daughter-in-law. Confident is , seeking to express herself and gain respect. For eg: in the ad-film the daughter-in-law gains the approval of her husband and her mother-in-law too, who both exclaim "Fantastic Malathi". A host of new packs like internationally accepted valve packs and the 'China Thambi' (kid brother in Tamil) Rs. 1.50 pack have opened up new markets for the brand.
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Tata Cafe
Tata Cafe, a 100% Pure Instant Coffee, was launched in 1996, offer a "Bush to Cup" experience in a cup of pure Instant coffee for a very competitive price. The product was endorsed by Popular film artistes like Sridevi and Renuka Sahane and ace cricketer Saurav Ganguly. Lot of innovative marketing activities have given this brand larger than life image.
Tata Kaapi
Tata Kaapi, an Instant Coffee - Chicory mixture is the third player in the Instant coffee-chicory segment. This brand attempts to strike a balance between Tradition and Modernity. A blend of tradition and lifestyle imagery has been used to project this brand. Innovative marketing has been the hallmark of this brand, with everything larger than life and beyond ordinary. This brand has triumphantly entered the Guinness Book of World Records with the world's largest Coffee mug. Consumers are positively responding and it is heartening to note the acceptance gained in the most discerning coffee state of them all - Tamil Nadu.
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CHAPTER- 3 COMPANY PROFILE
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ABOUT PEPSICO9
Caleb Bradham, a New Bern, N.C. druggist who first formulated Pepsi-cola, founded Pepsi Co.s beverage business at the turn of the century i.e. in the year 1890. A young phannacist Called Bradham began experimenting in 1890 as a cure for dyspepsia (indigestion) with combination of spices, 1 juices and syrups and created a refreshing new drink to serve his customer. He succeeded beyond all expectations as he invented the new beverage now known around the world as "PEPSICOLE" In 1902, he launched the Pepsi Cola Company in the back room of pharmacy, and applied to U.S. patient office for Trade Mark. The business began to grow and on June 16,1993, Pepsi-Cola trademark was officially registered with U.S. office. Bradham believed marketing would be the key to PEPSI-COLA prosperity and in his first year of business he spent $1900 on advertising when he sold 40,000 liters of syrup. In 1905 he built Pepsi fits bottling plant. Three more plants followed soon and in 1907, he was selling 50,000 liters year. Troubles started at the end of the First World War when Bradham over stocked sugar at high price, which subsequently dipped in 1920. By 1922, the company was insolvent by 1923, it went bankrupt and Bradham returned to pharmacy. In 1931, the company went bankrupt for the second time. At this time charless Groth, president of a giant candy company both the trademark. His success came when he offered a 12-ounce bottle at 5 cent while other colas were sold at the same price in 6 ounce bottles. In 1936, Pepsi has a $2 million net profit. Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew, slice and Mugvrands- Account for nearly one third of total soft drink sales in the United States, a consumer marker totaling about $56 billion. In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. Today Liption is the biggest selling ready to drink tea brand in the United States. Outside the United States, PepsiCola Company's soft drink operations include the business of even- up International; Pepsi-Cola beverages are available in about 170 countries. Pepsi-Cola began selling it products
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www.pepsico.com
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internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products account for about a quarter of all soft drinks sold internationally. In addition to brands marketed in the United States, Major products include Mirinda and Pepsi Max. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottles and food service customers. This includes some of the world loved and most recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. In 1940, history was made when the first advertising jingle was broadcast nationally. The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was recorded into fifty-five languages. In 1964, Diet Pepsi was introduced.
THE BUSINESS
PepsiCo. Has a worldwide operation in 3 fields Non Alcoholic beverage Snack Foods. Fruit Juices
PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees. The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International (PI). PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico. PAB includes PepsiCo Beverages North America and all Latin American beverage businesses. PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion. Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
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Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-foryou items to product choices that contribute to healthier lifestyles. PepsiCos mission is To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.
Shareholders
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Chicago and Swiss stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.
Corporate Citizenship
At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: PepsiCos 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.
PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed
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sculpture collection in a garden setting.The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were designed by the world famous garden planner, Russell Page, and have been extended by Franois Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.
PEPSICO BEVERAGES NORTH AMERICA (PBNA)
PepsiCos beverage business was founded 1898 by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PBNA has well known brand such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, Slice, Dole, Tropicana Twister and Tropicana Seasons Best. PBNA manufactures and sells concentrate for some of these brands to licensed bottlers, who sell the branded products to independent distributors and
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retailers. PBNA provides advertising, marketing, sales and promotional support for its brands. This includes some of the world's best-loved and most-recognized advertising. In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-to-drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks.
Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a readyto-serve package. The juice, Tropicana Pure Premium, became the companys flagship product. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. So Be became a part of PBNA in 2001. So Be manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Gatorade thirst quencher sport drinks were acquired by The Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sport's drink.PepsiCo Beverages North America includes the United States and Canada.
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LATIN AMERICA BEVERAGES: The Latin Americas Beverage business features a

powerful suite of powerhouse brands and distinct products tailored for the market. Gatorade outsells the nearest competitor more than five to one and, in Sao Paulo---7UP H2Oh! --- a lightly carbonated, is dominating the competition in its lead market.
PepsiCo Americas Foods

FRITO-LAY NORTH AMERICA
PepsiCo's snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product a corn chip and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started a business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc.Major Frito-Lay products include Lays potato chips, Doritos flavored tortilla chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles potato chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, Lays Stax potato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito-Lay also sells a variety of branded dips, Quaker Fruit & Oatmeal bars, Quaker Quakes corn and rice snacks, Grandmas cookies, nuts and crackers Frito-Lay North America includes Canada and the United States
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QUAKER FOODS NORTH AMERICA
The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company. The figure of a man in Quaker clothes became the first
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registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today.
In
Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas,
operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856.
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Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemima Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. Gatorade was acquired in 1983. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of RiceA-Roni. PepsiCo merged with The Quaker Oats Company in 2001.
LATIN AMERICA BEVERAGES

The Latin Americas Foods business includes operations in Brazil, Argentina, Colombia, Peru and Venezuela. This business continues to grow organically and through acquisitions like the Lucky snacks business in Brazil.
PEPSICO INTERNATIONAL
PepsiCo International includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. Pepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the 1950s. Today, PepsiCo beverages are available in more than 170 countries and territories. Brands include Aquafina, Gatorade and Tropicana In addition to brands marketed in the United States, PepsiCo International brands include Mirinda, Seven-Up and many local brands.
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PepsiCo began its international snack food operations in 1966. Today, products are available in nearly 170 countries. Often PepsiCo snack food products are known by local names. These names include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and others. The company markets FritoLay brands on a global level, and introduces unique products for local tastes.
PepsiCo. Has a worldwide operation in 3 fields

Non Alcoholic beverage Snack Foods. Fruit Juices
PepsiCo India Holdings Private Limited

PepsiCo, the world leader in convenient foods and beverages, welcomes you to a community of over 157,000 employees spread over more than 200 countries and territories across the globe with annual revenues in excess of $33 billion. As part of its sustainable development initiatives, PepsiCo India has been a committed leader in the promotion of rain water harvesting, water conservation recycling and the reduction of effluent discharge. Thus, we seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.
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COMPANY FACTS
Company Name:
PepsiCo India Holdings Private Limited
Industry:
Food & Beverage / Catering / Restaurant
Type of Company:
Private Limited Company, Foreign Based Company
Location:
DLF Corporate Park, S Block, Qutab Enclave, Phase III Gurgaon 122 002
HISTORY
Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCo entered India in 1989 and in the span of a little more than a decade, has grown to become the countrys largest selling soft drinks company as well as dominant player in the snack food segment (Frito-Lay is the leader in the branded potato chips market). To support the operations are the groups 38 bottling plants in India, of which 16 are company owned and 22 are franchisee owned.
Product and Services

PepsiCos mission is to be the worlds premier consumer Products Company focused on convenient foods and beverages. The company seeks to produce healthy financial rewards to investors as it provides opportunities for growth and enrichment to its employees, business partners and the communities in which it operates. PepsiCo now has many global brands, which include: Pepsi-Cola, Diet Pepsi, Mountain Dew (Diet & Regular), Gatorade, Walkers, Lays Potato Chips, Doritos Tortilla Chips, Tropicana Pure Premium Orange Juice, 7-UP (Outside USA), Cheetos Cheese Flavoured Snacks, Quaker Cereals, Aquafina Bottled Water, Ruffles
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Potato Chips, Mirinda, Tostitos Tortilla Chips, Sierra Mist (Diet & Regular) and Fritos Corn Chips. Culture and Values
Our Guiding Principles:

We always strive to Care for customers, consumers and the world we live in. We are driven by an intense, competitive spirit in the marketplace, but we direct this spirit towards solutions that achieve a win for each of our constituents as well as a win for the corporation. The test of our standards is that we must be able to personally endorse our products without reservation and consume them ourselves. This principle extends to every part of the business, from the purchasing of ingredients to the point where our products reach the consumers hands. Speak with truth and candor. We speak up, telling the whole picture, not just what is convenient to achieving individual goals. In addition to being clear, honest and accurate, we take responsibility to ensure our communications are understood. Balance short term and long term. We make decisions that hold both short-term and long-term risks and benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable growth. Win with diversity and inclusion. We leverage a work environment that embraces people with diverse backgrounds, traits and different ways of thinking. This leads to innovation, the ability to identify new market opportunities, all of which helps develop new products and drives our ability to sustain our commitments to growth through empowered people.Respect others and succeed together. This company is built on individual excellence and personal accountability, but no one can achieve our goals by acting alone. We need great people who also have the capability of working together, whether in structured teams or informal collaboration. A spirit of fun, our respect for others and the value we put on teamwork make us a company people enjoy being part of, and this enables us to deliver world-class performance
PEPSI COLA INTERNATIONAL STRATEGY

Focus on Business growth Target core brands Satisfy Market Priorities
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PEPSI'S GLOBAL STRATEGY
When the "You're in the Pepsi Generation" advertising campaign launched in 1963, it may have been the first time a brand was marketed primarily with an association to its consumers' aspiration attitudes. A decidedly youth-oriented strategy, the campaign hoped to hook young Baby Boomers while they were still young. In 1984 Pepsi launched another long-running campaign, "The Choice of a New Generation," and in 1997 they debut the "Generation Next" concept. The newest campaign slogan, introduced this year, is "More Happy," which definitely coincides with one concrete example of "more" in the packaging of Pepsi products todaymore designs. At least 35 distinct design ideas will grace the packaging of Pepsi's cans and bottles this year alone, and this design strategy may continue indefinitely. Though "generational" in word, the campaign certainly has a youth-oriented feel with package designs, advertising, and websites that are fun and playful. PepsiCo worked closely with Peter Arnell and Arnell Group, based in New York City, to devise a comprehensive new strategy that would connect with Pepsi's core consumers. Arnell reinvented the Pepsi package as a meaningful and appealing communications tool for the latest generation of youth that are not overwhelmed by media, music, or digital distraction
Experimental packaging
Arnell Group (a wholly-owned subsidiary of Omnicom Group) is a design and brand creation firm specializing in experiential design and product innovation, preferring to take complete branding and packaging projects from first concept to complete market solutions. Peter Arnell,
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currently chairman and chief creative officer of Arnell Group, formed the Arnell Group Innovation Lab in 1999 to place invention and innovation at the forefront in a collaborative laboratory for corporations interested in designing for next generation products and experiences. Arnell applied many of his philosophies in the Pepsi project. Peter has taken a classic and turned it into a modern, innovative, and relevant marketing and communications tool," said Ron Coughlin, chief marketing officer, beverages, PepsiCo International. The new global look launched in February with eight new package designs across cans and bottles, and the campaign is unfolding in a similar manner overseas. The can designs roll out one at a time approximately three weeks apart to enhance the anticipation of discovery and to pique the interest of collectors. Product innovation today must be driven by deep consumer meaning and connectivity," says Arnell. "It is less about unmet needs and more about giving people what they haven't asked for but are dying to have. Using design to turn packaging into personal consumer-powered media helps create the ultimate supportive and inspiring relationship between Pepsi and its youth audience."
THINKING GLOBALLY
The Pepsi can designs roll out one at a time, but the two-liter Pepsi bottles will have three or four designs out at any given time. Mike Doyle, creative director at Arnell Group, explains that there was a great depth of exploration and research that was conducted before even beginning to formulate a new Pepsi packaging strategy. PepsiCo and Arnell Group traveled extensively to emerging markets to find key consumer product drivers for youth cultures and to learn how the Pepsi brand was perceived in different countries They found, somewhat surprisingly, that there were very few differences around the world in how consumers felt about Pepsi's fun, effervescent brand image. "The brand equity is really consistent," says James Miller, marketing director, Pepsi-Cola North America. They also found many consistencies in youth cultures around the world in how today's youth is preoccupied with newness, discovery, and personalization of their possessions. Miller describes the design campaign's goal as "sustainable discovery," where the consumer audience is constantly intrigued and engaged.
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Designers at Arnell Group created the dozens of new and vibrant designs with only a handful of blue and gray shades. Each design tells a story of sorts and each can design has a unique website address on the side of the can. The first one on the "Your Pepsi" can allows web users to design a digital billboard that will appear in Times Square, and one coming shortly will allow users to mix their own music online. "We redefined packaging as media in the marketplace for Pepsi," says Doyle. "It speaks to youth in their language." Doyle believes that the designs succeed because they are able to capture the audience's mind space. "The designs are reflecting back to the culture instead of talking to the culture or imposing on it."
SHAREHOLDERS
Pepsi-co. Inc. (Symbol: Pep) shares are traded principally the New York Stock Exchange in the United Stated. The company is also listed on the Amsterdam, Midwest, Swiss and Tokyo stock exchange. Pepsi Co has consistently paid cash dividends since the corporation was founded.
CORPORATE CITIZENSHIP
Pepsi Co. believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in its communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive-ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent, and funds to programs of national impact. Each division is responsible for its own growth program.
GROWTH GOALS
Set a winner's growth goals. If you act like no. 2, you will always be no.2
Employment
Hiring people who love to work and thrive on risk.
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Target Core Brands

Put emphasis on the firmly established products and try to increase their market share.
Market Priorities
Establish market priorities and work towards achieving the maximum good for the priorities.
PEPSI GLOBAL LOGO
While taking to consumers some years back, Pepsi carried one exercise consumers, "Take a piece of paper and draw what Pepsi means to you". Interestingly, a lot of consumers especially kids drew the Pepsi's globe. What is the globe? Well, its red, white and blue which says a lot of things. Secondly, It has an incredible balance, modem kids says it has some incredible yin and yang. Thirdly, it has a quality of complete harmony. Lastly, it speaks about openness and eternal youthfulness. The biggest thing about the globe is that it is three dimensional logo, which is not used by any other brands.
In the Pepsi logo, blue colour has been underlined and used as a background colour. Blue colour. Blue colour is associated with cold and refreshment. Blue Jeans are a favourite piece of clothing for the youth's worldwide. Thus the colour hits the 2 dimensions:
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It supports the product quality-Refreshment It reinforces consumer's affection for their favourite things.
Our Vision, Mission, Values and Guiding Principles
VISION
As we stand at the crossroads of the new millennium, it's time to eradicate our focus and energy single-mindedly to our vision. The vision is to be the best. And what is that vision? "To be the best consumer products company in the eyes of our suppliers, consumers, employees and shareholders."
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"To become truly global company, by continuing to build a competitive and profitable word wide refreshment beverage business." The Pepsi challenge of the Millennium will be the test of the Best. The best in connecting with the customer and the consumer, the best in marketing, the best in best in processes and the best in people and teamwork. selling, the best in quality, the
Mission
We aspire to make PepsiCo the worlds premier consumer Products Company, focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as
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we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity. The behaviours that will help us achieve our mission are articulated in our Values Statement.
VALUE
Our Values & Philosophy are a reflection of the socially and environmentally responsible company. We are committed to delivering sustained growth through empowered people acting responsibly and building trust. Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done . Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own. Responsibility and Trust form the foundation for healthy growth. We hold ourselves both personally and corporately accountable for everything we do.
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We must earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by walking the talk and following through on our commitment to succeeding together.
SWOT ANALYSIS
Strengths Branding - One of PepsiCo top brands is of course Pepsi, one of the most recognized
brands of the world, ranked according to Inter brand. As of 2008 it ranked 26th amongst top 100 global brands. Pepsi generates more than $15,000 million of annual sales. Pepsi is joined in broad recognition by such PepsiCo brands as Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Lay Potato Chips, Lipton Teas (PepsiCo/Unilever Partnership), Tropicana Beverages, Fritos Corn, Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafina Bottled Water, Cheetos Cheese Flavored Snacks, Quaker Foods and Snacks, Ruffles Potato Chips, Miranda, Tostitos Tortilla Chips, and Sierra Mist. The strength of these brands is evident in Pepsi Cola presence in over 200 countries. The company has the largest market share in the US beverage at 39%, and snack food market at 25%. Such brand dominance insures loyalty and repetitive sales which contributes to over $15 million in annual sales for the company Diversification - PepsiCo diversification is obvious in that the fact that each of its top 18 brands generates annual sales of over $1,000 million. PepsiCo arsenal also includes ready-to-drink teas, juice drinks, bottled water, as well as breakfast cereals, cakes and cake mixes. This broad product base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates. Distribution The Company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. This is part of a three pronged approach which also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services
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Weaknesses
Overdependence on Wal-Mart Sales to Wal-Mart represents approximately 12% of PepsiCo total net revenue. Wal-Mart is PepsiCo largest customer. As a result PepsiCo fortunes are influenced by the business strategy of Wal-Mart specifically its emphasis on private-label sales which produce a higher profit margin than national brands. Wal-Mart low price themes put pressure on PepsiCo to hold down prices. Overdependence on US Markets - Despite its international presence, 52% of its revenues originate in the US. This concentration does leave PepsiCo somewhat vulnerable to the impact of changing economic conditions, and labor strikes. Large US customers could exploit PepsiCo lack of bargaining power and negatively impact its revenues. Low Productivity - In 2008 PepsiCo had approximately 198,000 employees. Its revenue per employee was $219,439, which was lower than its competitors. This may indicate comparatively low productivity on the part of PepsiCo employees. Image Damage Due to Product Recall - Recently (2008) salmonella contamination forced PepsiCo to pull Aunt Jemima pancake and waffle mix from retail shelves. This followed incidents of exploding Diet Pepsi cans in 2007. Such occurrences damage company image and reduce consumer confidence in PepsiCo products.
Opportunities
Broadening of Product Base - PepsiCo is seeking to address one of its potential weaknesses; dependency on US markets by acquiring Russia leading Juice Company, Le bed yansky, and V.W. water in the United Kingdom. It continues to broaden its product base by introducing True North Nut Snacks and increasing its Lipton Tea venture with Unilever. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers. International Expansion - PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. In addition the company plans on major capital initiatives in Brazil and Mexico. Growing Savory Snack and Bottled Water market in US - PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. Products such as Aquafina and Propel are well established products and
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in a position to ride the upward crest. PepsiCo products such as, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Roald Gold pretzels, sanities are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013, representing an increase of $28 million.
Threats
Decline in Carbonated Drink Sales - Soft drink sales are projected to decline by as much as 2.7% by 2012, down $ 63,459 million in value. PepsiCo is in the process of diversification, but is likely to feel the impact of the projected decline.
Potential Negative Impact of Government Regulations - It is anticipated that government initiatives related to environmental, health and safety may have the potential to negatively impact PepsiCo. For example, manufacturing, marketing, and distribution of food products may be altered as a result of state, federal or local dictates. Preliminary studies on acrylamide seem to suggest that it may cause cancer in laboratory animals when consumed in significant amounts. If the company has to comply with a related regulation and add warning labels or place warnings in certain locations where its products are sold, a negative impact may result for PepsiCo.
Intense Competition - The Coca-Cola Company is PepsiCo primary competitors. But others include Nestle, Group Dionne and Kraft Foods. Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. Recently Coca-Cola passed PepsiCo in Juice sales.
Potential Disruption Due to Labor Unrest - Based upon recent history, PepsiCo may be vulnerable to strikes and other labor disputes. In 2008 a strike in India shut down production for nearly an entire month. This disrupted both manufacturing and distribution.
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SUSTAINABLE ADVANTAGE
Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace: Big, muscular brands; Proven ability to innovate and create differentiated products; and Powerful go-to-market systems. Making it all work are our extraordinarily talented and dedicated people. When we take these competitive advantages and invest in them with dollars generated from top-line growth and cost-saving initiatives, we sustain a value cycle for our shareholders. In essence, investing in innovation fuels the building of our brands. This in turn drives top-line growth. Dollars from that top-line growth are strategically reinvested back into new products and other innovation, along with cost-savings projects. Thus, the cycle continues. Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo. Mrs. Nooyi leads one of the worlds largest convenient food and beverage companies, with 2007 annual revenues of more than $39 billion. The company operates in nearly 200 countries, and employs more than 185,000 people worldwide. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola
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beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual retail sales. PepsiCos commitment to sustainable growth, defined by Mrs. Nooyi as Performance with Purpose is focused on generating healthy financial returns while giving back to communities the company serves. This includes meeting consumer needs for a spectrum of convenient foods and beverages, replenishing the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and
Mrs. Nooyi began her career in India, where she held product manager positions at Johnson & Johnson and at Mettur Beardsell, Ltd., a textile firm. In addition to being a member of the PepsiCo board of directors, Mrs. Nooyi serves as a member of the boards of the Federal Reserve Bank of New York, the International Rescue Committee and Lincoln Center for the Performing Arts in New York City. She is a Successor Fellow of Yale Corporation, member of the Board of Trustees of Eisenhower Fellowships, a member of the Executive Committee of the Trilateral Commission and currently serves as Chairman of the US-India Business Council. She holds a BS from Madras Christian College in Madras, an MBA from the Indian Institute of Management in Calcutta and a Master of Public and Private Management from Yale University. Mrs. Nooyi is married and has two daughters. 27-April-08 Massimo F. dAmore was named Chief Executive Officer of PepsiCo Americas Beverages in November 2007. PepsiCo Americas Beverages has a beverage portfolio including Pepsi-Cola North America,
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Gatorade, Tropicana, all of PepsiCos Latin American beverage businesses, and its North America PepsiCo Food Service division. Previously, Mr. dAmore was Executive Vice President Commercial for PepsiCo International, a position he assumed in November, 2005, after serving as President, Latin America Region for 4 years and SVP, Corporate Strategy & Development for PepsiCo for 2 years. Mr. dAmore was also Senior Vice President and Chief Marketing Officer for Pepsi-Cola International (PCI), a position he assumed in 1998 and Business Unit General Manager (BUGM), Turkey/Central Asia since 1999. Prior to PepsiCo, Mr. dAmore had a 15-year international career with Procter & Gamble in Operations, Marketing and General Management in Europe and North Africa. Mr. dAmore is a native of Italy and an engineering graduate from the Swiss Polytechnic Institute in Lausanne, where he also earned a Master of Science Degree. He has lived in Italy, Switzerland, Germany, Belgium, Morocco, France and for the last 13 years in the U.S. He is fluent in English, Italian and French; and has a working command of Spanish and German. He has three children and resides in Westchester. PepsiCo is one of the worlds largest convenient food and beverage companies, with 2007 revenues of more than $39 billion. The company operates in nearly 200 countries, and employs more than 185,000 people worldwide. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual retail sales.
Replenishing water
PepsiCo India continues to replenish water and aims to achieve positive water balance by 2009, which means it is committed to saving and recharging more water than it uses in its beverage plants
Waste to Wealth
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PepsiCo India continues to convert Waste to Wealth, to make cities cleaner. This award winning initiative has established Zero Solid Waste centres that benefit more than 2,00,000 community members throughout the country
Partnership with Farmers
PepsiCo Indias Agri-partnerships with farmers help more than 15,000 farmers across the country earn more...
Healthy Kids
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PepsiCo India stays committed to the health and well-being of kids. It will continue to provide children with a diverse, healthful and fun portfolio, while simultaneously encouraging active lifestyle by expanding its Get Active programme for kids, especially for school going children.
The R.M.P.L. & HYDERABAD BEVERAGES Pvt. Ltd.

The head of sales and marketing is in charge of all the marketing activities i.e. sales promotion, publicity, advertising, market survey and shipping. Though its main function is to have control over the outlet distribution. Sales executive and sales supervisor assist the sales manager. R.M.P.L .was closed down in end of 2001 due to administration and policy of the company. Simultaneous, another marketing company came in the name of Hyderabad Marketing Co Pvt. Ltd. in the year 2002. Recently in the year 2003 S.M.V. Beverage Jamshedpur had set up new plant of pet bottles. It is producing per bottle of 2 litres, 600 ml of all flavours of Pepsi. Pepsi Miranda orange 7 UP Mountain dew Nimbooz Slice Aquafinia This plant is having the capacity of 400 bottles per minute. During the ICC world cup it has introduced PEPSI Blue in the market. At present M/s S.K. Jaipuria is having following plants and marketing companies in Jamshedpur.
M/s Steel city beverage M/s SMV beverage Jamshedpur M/s kamani foods
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M/s Hyderabad marketing company.
STRUCTURE OF THE ORGANISATION

For the every concern a structure is necessary on which the complete organization should be founded. The existence of a structure as obvious in every organization whether planned /unplanned or ill planned. To have a structure is not a choice of the organizer. The choice is only of the form and pattern of the organization. Planned organizational structure may be proved logical clear-cut and streamlined in order to meet the present requirements. Otherwise it will merely be a makeshift arrangement and the management is rendered difficult and ineffective because organizational structure affects everyone in the organization. A good organizational structure facilitates management and the operation of enterprise and it encourage growth. It helps organization to reach its common goal. In order to make the organizational structure more effective one structure that can meet the demand of various factors namely environment, technology, size and people.
Following are the major consideration: Clear lines of authority. Adequate delegation of authority. Minimum managerial level. Unity of directors. Application of ultimate responsibility. Span of control. Simplicity. Flexibility Due consideration for top groups Proper emphasized on shift activities.
S.M.V. Beverage was taken over by Mr. S. K. Jaipuria in March 1999 from Mr. N.D. Kamani along with Rushab marketing limited, a marketing unit. M/s S.K. Jaipuria running
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this plant very successfully. He is very much enthusiastic to increase the production and sales and to capture the whole market of South Bihar, now Jharkhand state. He established another plant in the name SMV Beverage, Jamshedpur and increased production from this new plant is 600 bottles per minute. SMV Beverage Jamshedpur has a management board headed by Mr. S.K. Jaipuria. He 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. P.S. Kumar. He has been given the powers and authority to manage the company affairs. Therefore Mr. P.S. Kumar can be recognized as the chief executive The director look after all the department like production, sales, account, 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 production department. He looks after production, that is bottling process, inspection, storage of new materials and though there is a quality control manager. The accounts department is headed by the controller of accounts. Manager (personnel & administration) looks after the function of administration, industrial relation, legal jobs security, welfare etc. the purchase officer in charge of all purchase activities of concern. S.M.V. Beverage is proud of winning Pepsi I.Q.A. (Gold) International quality award, gold for the year 2001. S.M.V. Beverages Pvt. Ltd. Strives to strengthen Indias industrial base through the effective utilization of men and materials. This means to achieve this through high technology and productivity, consistent with modern management practices. S.M.V. Beverages recognizes that while honesty and integrity are the essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity. Overall, the company seeks to scale the heights of excellence in all that it does in all atmospheres free from fear and thereby reaffirms the faith in democratic values.
AWARDS
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Adityapur Environment Conservation Society Award, Sponsored By- Union Enterprises. Pepsi Award for Excellence in Quality for the period July 1992 to December 1992 from Pepsi Foods Limited. Two small Cups from NCWA. Barindranath Memorial Running Trophy for XIIth Annual Flower Show, Jamshedpur. Pepsi Cola International Award for Achievement in Quality (Bronze) for the Year 1992. Plant Performance Award 1993 to Steel City Beverages Limited from Pepsi Foods Limited. Pepsi Co. Beverages International Quality Award (Gold) in 2001. Pepsi Co. Beverages International Quality Award (Bronze) in 2002. Outstanding Performance Award to P.S. Kumar for 2003. East EMU Challenge Trophy for Chalo Bazar Day on 5th Sep 2003. Pepsi Co. Beverages International Quality Award (Silver) in 2004. MU Best Plant Team Award 2004 to SMV Beverages (Jamshedpur). Best Unit EAMU for Chalo Bazar Day on 7th March 2005. Outstanding Performance Award to P.S. Kumar Jharkhand Team on 7th March 2005. MU Best Manufacturing Team Award 2005 to SMV Beverages (Jamshedpur).
GOAL SETTING
Goal denotes what an organization hopes to accomplish in a future period of time. They represent a future state or an outcome of the effort put in now. A broad category of financial and non-financial issues is addressed by the goals that a firm sets for it. P.S. Kumar, Director of S.M.V. Beverages Pvt. Ltd. expressed the purpose of his organization as our goal is to be become most competitive and progressive institution in our (i.e., Beverage) industry.
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MARKETING MIX OF HYDERABAD MARKETING COMPANY

The set of controllable tactical tools: - A product, place service and promotion (4Ps) that the firm blends to produce the response it wants in the target market.
They are the following 4ps.

Products :-That could meet the identified needs of chosen consuming groups.
Price: - Product price are fixed by Pepsi Co India according to competitors product price. Place: - It performs various functions like transportation, warehousing, channel management etc. so the products easily reach the consumers. Promotion: - The firm carries out no. of measure like personal selling, advertising and sales promotion programmed with view to communicate to the consumer and promoter of the product. It is the mechanism to achieve the consumptions of marketing process striking the level of price that is accepted to the consumer as well as consumer.
4Ps Policies of the Pepsi products:

1. PRODUCT: - There are five lines of products of soft drink in India that is almost matched with international quality product line. Pepsi 200 ml, 300ml, 600 ml and 2000ml. Miranda - 200 ml, 300 ml, 600 ml and 2000 ml. 7 up - 200 ml, 300 ml, 600 ml and 2000 ml. Mountain Dew - 200 ml, 600 ml and 2000 ml. Slice 250 ml, 500 ml and 1000 ml.
2. PRICE: - Product price are fixed by Pepsi Co India according to competitors product price.
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3. PLACE: - Pepsi has a strong channel of distribution and intermediaries command the distribution work. Plant Depot - Distributor - Consumer
4. PROMOTION: - In the specific , sales promotion methods are those sales activities that supplement both personal selling and advertising and co-ordinate them and help to make them effective such as display, shows and exposition and demonstrations and other recurrent selling efforts not in ordinary route. Pepsi has variety of tools and techniques of sales promotion. Like or example sales promotion letters, catalogues, point of purchase (POP), display, customer service program and demonstration of free sample.
SWOT ANALYSIS
STRENGTHS: a) Brand Name
Pepsi has stayed in this market for quite a long time. So experienced and stationed in people`s mind deeply ,Now no one doesnt know the brand Pepsi _cola .Whenever the name Pepsi is heard people will conjure up the image of fresh and cool drink.
b) Broader product line:

PepsiCo has a number of soft drinks with different flavours.
c) Consumer satisfaction:
From consumer survey we find that the consumers are satisfied with the PepsiCo products. Though coke is a tough competitor, consumer satisfaction is the biggest strength of a company as these are the people who make the product successful.
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d) Effective Distribution channel:

We find a good network of distribution channel of Pepsi in Jamshedpur. Whole of Jamshedpur has been divided into area wise etc. which made Pepsi product available in all corners of Jamshedpur city.
e) Advertisement:
Pepsi has very effective advertisement in Jamshedpur. Many retail outlets inside the city have banners (big and small). Apart from retail outlets we find ads near major shopping areas. These kept consumers attracted towards Pepsi in Jamshedpur.
f) Brand ambassadors: PepsiCo has always targeted the youth because its ads have with
young celebrities. M.S. Dhoni the Indian cricket team captain, and Katrina kaif, Ranveer kapoor are some of the strong grand ambassador of PepsiCo who is idle for many youngsters.
WEAKNESSES: a) Poor advertisement in rural areas. b) Not able to fulfil the demand of consumers especially for Mountain Dew and Slice during the summer season.
OPPORTUNITIES: -
Expansion in rural market From retailers survey we find that majority of retailers in rural areas prefer to sell Pepsi only. From retailers we come to know that they are able to sell good number of Pepsi products during 2 days weekly haat (market) so there is good chance to attract more customers and expand market in these areas.
Growing living standard of people Growing living standards and consumers preferences for Pepsi can increase Pepsi share in Jamshedpur.
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Modernization of Jamshedpur Opening of new malls and shopping areas in Jamshedpur will give opportunity for more retail outlets. New Openings New openings of Colleges, Institutes and coaching centre etc. are supporting to increase the number of consumers. Water related products, non-soft drinks, energy drinks Increase the coverage areas. Increase market share by improving service Increase the target consumer every year. Company can go for more Monopoly counters
THREATS: Growing competition from the only one rival COCA-COLA
Growing fruit juice shops
constant competition with coke. Olympic branding from coke. other drink companies are increasing competition Decline in market reputation due to ineffectiveness & declaring service. Aggressive marketing strategies of Coke.
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CHAPTER- 4 RESEARCH METHODOLOGY
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Statement of Problem
Due to low level of advertising strategy, sales also decreases which results into poor distribution in the summer time. PCI too has a low maintenance and does not work effectively due to the shortage of electricity.
Objective of the Study

To understand the advertising channels used by PepsiCo with special reference to bill boards and signage etc. To know the most effective media for advertising the product that has greatest influence on the respondents To find out average sales in different area of Jamshedpur. To find out retailers view and preference towards the PepsiCo product based on open questioner and to know the demand of the product in the market by analysing the each question filled by the retailers.
Scope of the study

This study can be used in different areas of the industries for the better reports. The findings can help us to adopt new strategies for advertisement which will help in increases production and sales. The study can be used a foundation or further analysis on similar themes in related industries It provides a knowledge in different prospective, for example awareness of products.
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Sources of data
Primary sources of data

These data were collected on the basis of personal interaction with the retailers by knowing their preferences & basic requirements, then taking the contact no. & address of the retailers.
Secondary source of data

The profile of Pepsi & other valuable information like product quality, product variety etc. were gathered from internet, magazines & from local office.
Sampling Design
1. Descriptive research:Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when, "why" and how.
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2. Sampling Unit: Different retailers working as distributors for PepsiCo were treated as sample units. Retailors from different place in Jamshedpur makes the sample unit. 3. Sampling Frame: The entire list, which contains the sample units, is known as sample frame. In this case my sample frame was segment in Jamshedpur, area covered by me are: Jugsalai, Bistupur,
Adityapur, Sakchi, Mango, Telco, Baridih, Golmuri and other scattered place.. 4. Sampling Technique: Researchers must choose probability sampling methods over the ease of non-probability sampling so they can generalize their study results and reduce the risk of bias. Convenience sampling is a nonprobability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher. 5. Sample Size: - The sample size of my project is 250 retailers.
LIMITATIONS TIME: The project period was only of four weeks which was not sufficient to cover the whole area. SIZE: The sample size and area was limited, as a result of which the survey represents very small percentage of the total population of Jamshedpur.
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CHAPTER- 5 DATA ANALYSIS AND INTERPRETATION
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The analysis is based on the data collected from the retailers through questionnaire.
1. Which brand of soft drink do you prefer to sell? TABLE NO 1 SHOWS % OF RESPONDENT TOWARDS THE BRAND Product Pepsi Coke Both Total No. Of Respondent 105 82 63 250 % Respondent 42 33 25 100 Sample Size-250 GRAPH NO 1 SHOWING THE % OF RESPONDENT TOWARDS THE BRAND No Of Respondent 25% 42% Pepsi Coke 33%
Both
Interpretation: Out of 100 % respondent 42% retailers prefer to sell Pepsi, 33% retailers prefer to sell coke. 25% retailers prefer to sell both brands.
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2. Which Company provides you better Schemes? TABLE NO 2 SHOWS THE % OF RESPONDENT TOWARDS COMPANY SCHEME Product Pepsi Coke Others Total No. Of Respondent 139 88 23 250 % Respondent 56 36 8 100 Sample Size-250 GRAPH NO 2 SHOWING THE % OF RESPONDENT TOWARDS COMPANY SCHEME No Of Respondent 8% 36% Pepsi 56% Coke Others
Interpretation: Out of 100% respondent 56% Schemes provided by Pepsi, 36% Schemes provided by Coke and 8% Schemes provided by others.
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3. Which product of PepsiCo is more demandable? TABLE NO 3 SHOWS THE % OF RESPONDENT TOWARDS DEMAND OF PEPSICO PRODUCT Product Pepsi Slice Mirinda Mountain Dew 7up Nimbooz Total No. Of Respondent 58 93 58 22 19 0 250 % Of Respondent 23 37 23 9 8 0 100 Sample Size-250
GRAPH NO 3 SHOWING THE % OF RESPONDENT TOWARDS DEMAND OF PEPSICO PRODUCT
Interpretation: Above mentioned figure clearly shows that slice is key product of Pepsi. Out of 100% respondent 37% Respondent Says Slice is More Demandable,23% Respondent Says Pepsi & Miranda is more demandable. Compare to other PepsiCo product.
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4. What do you think which pack is more demandable? TABLE NO 4 SHOWS THE % OF DEMANDABLE PRODUCT Pack Of Product Glass Pet Total No Of Demandable Product 199 51 250 % Of Demandable Product 80 20 100 Sample Size-250 GRAPH NO 4 SHOWING THE % OF DEMANDABLE PRODUCT
Interpretation: Compare to other product glass is more demandable in comparison of pet. Graph Shows 80% Customer Prefer Glass. And only 20% Customer Prefer to take to pet.
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5. Do you have VISI - Cooler? TABLE NO 5 SHOWS THE % OF RESPONDENT TOWARDS THE AVAILABILITY OF VISI COOLER Availability Of VISI-Cooler Yes No Total NO. Of Respondent 241 9 250 % of Availability 96 4 100 Sample Size-250 GRAPH NO 5 SHOWING THE % OF RESPONDENT TOWARDS THE AVAILABILITY OF VISI COOLER
Interpretation: Out of 100% respondent 96 % Retailer has VISI - cooler. Only 4% Retailer has no any cooling equipment. Research shows maximum retailer has VISI - cooler.
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6. If yes which brands VISI do you have? TABLE NO 6 SHOWS THE % OF BRANDS OF VISI Brands of VISI Pepsi Coca Cola Own Total No. of VISI 120 97 33 250 % of VISI 48 39 13 100 Sample Size-250 GRAPH NO 6 SHOWING THE % OF BRANDS OF VISI
Interpretation: Out of 100% respondent 48% retailer using VISI of Pepsi, 39% retailer has cooling equipment of Coca Cola. And 13% has his own cooling equipment.
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7. Which type of Promotional tools do you use? TABLE NO 7 SHOWS THE % OF PROMOTIONAL TOOLSUSED BY RETAILERS Promotional Tools Sample Coupons Premiums gift Demonstration Bonus Packs Price offs Total No. of Promotional Tools 39 22 32 26 48 83 250 % OF Promotional Tools 16 9 13 10 19 33 100 Sample Size-250 GRAPH NO 7 SHOWING THE % OF PROMOTIONAL TOOLSUSED BY RETAILERS
Interpretation: Most of retailer (33%) use Price offs as a promotional tool. And 19% retailer use Bonus packs & 16% sample as a promotional tools.
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8. According to you what is the reason behind success of Pepsi? TABLE NO 8 SHOWS THE % OF RESPONDENT THE REASON OF SUCCESS Reason of success Sales Promotion Better Supply Better Quality Other Total No of respondent 98 73 63 16 250 % Of respondent 39 29 25 7 100 Sample Size-250 GRAPH NO 8 SHOWING THE % OF RESPONDENT THE REASON OF SUCCESS
Interpretation: Out of 100% respondent 39% retailer respond sales promotion is a reason of success of Pepsi,29% respondent says Better supply is a reason of success of Pepsi. And survey shows 25% Better Quality is a reason of success.
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9. Are you satisfied with Pepsis Sales Promotional & Advertisements activities? TABLE NO 9 SHOWS THE % OF RESPONDENT OF SATISFACTION Satisfaction Yes No Total No. of Respondent 196 54 250 % of Respondent 78 22 100 Sample Size-250 TABLE NO 9 SHOWING THE % OF RESPONDENT OF SATISFACTION
Interpretation: Out of 100% respondent 78% retailer satisfied with Sales Promotional & Advertisements activities of Pepsi. And 22 % retailer is not satisfied with Sales Promotional & Advertisements activities of Pepsi.
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10. Which Brand Signage do you have? TABLE NO 10 SHOWS THE % OF RESPONDENT OF PRODUCT Product Pepsi Coke Both Total No. Of Respondent 82 63 105 250 % Respondent 33 25 42 100 Sample Size-250 GRAPH NO 10 SHOWING THE % OF RESPONDENT OF PRODUCT
Interpretation: Out of 100% respondent 33% retailers prefer to sell Pepsi, 25% retailers prefer to sell coke. and 42% retailers prefer to sell both.
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ANALYSIS OF SIGNAGE AND AVERAGE SALES OF PEPSI IN DIFFERENT AREAS OF JAMSHEDPUR

GRAPH 11 SHOWING THE AVERAGE SALES VOLUME OF JAMSHEDPUR AREA
The retailers divided into various groups Group 1 had a maximum signage Group 2 had a 4 to 5 signage Group 3 had a 2 to 3 signage Group 4 had a 1 signage and its a hotel Group 5 had a 1 signage and its a bar and restaurant
It is quite evident that this average sales is high for that group which has maximum number of signage.
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GRAPH 12 SHOWING THE AVERAGE SALES VOLUME OF JUGSALAI AREA
The retailers divided into various groups Group 1 had a maximum signage Group 2 had a 4 to 5 signage Group 3 had a 2 to 3 signage Group 4 had a 1 signage and its a hotel
It is quite evident that this average sale is high for that group which has maximum number of signage.
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GRAPH 13 SHOWING THE AVERAGE SALES VOLUME OF BISTUPUR AREA
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GRAPH 14 SHOWING THE AVERAGE SALES VOLUME SAKCHI AREA
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GRAPH 15 SHOWING THE AVERAGE SALES VOLUME MANGO AREA
The retailers divided into various groups Group 1 had a maximum signage Group 2 had a 4 to 5 signage Group 3 had a 2 to 3 signage Group 4 had a 1 signage and its a hotel
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GRAPH 16 SHOWING THE AVERAGE SALES VOLUME ADITYAPUR AREA
The retailers divided into various groups Group 1 had a maximum signage Group 2 had a 4 to 5 signage Group 3 had a 2 to 3 signage
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GRAPH 17 SHOWING THE AVERAGE SALES VOLUME GOLMURI AREA
The retailers divided into various groups Group 1 had a maximum signage Group 2 had a 4 to 5 signage Group 3 had a 2 to 3 signage
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GRAPH 18 SHOWING THE AVERAGE SALES VOLUME TELCO AREA
The retailers divided into various groups Group 3 had a 2 to 3 signage Group 5 had a 1 signage and its a bar and restaurant
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GRAPH 19 SHOWING THE AVERAGE SALES VOLUME BARIDIH AREA
The retailers divided into various groups Group 2 had a 4 to 5 signage Group 3 had a 2 to 3 signage
There is an exception regarding the influence of signage on average sales. Here the group 3 has more sales. However as the other three groups were not available in that area it would be difficult to come to any conclusion regarding the exception.
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CHAPTER- 6 FINDINGS SUGGESTIONS AND CONCIUSIONS
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FINDINGS:
Objective no 1:- To understand the advertising channels. Used by PepsiCo with special
reference to bill boards and signage etc.
Findings:- it was found that PepsiCo advertisement is done by print media for example:
G.S.B, Plax board, owning, umbrella, rack, wall painting, pci. Objective no 2:- To know the most effective media for advertising the product that has greatest influence on the respondents Findings:- it was found out that the effectiveness of advertisement through print media for the retailers. Print media through different aspects have different levels of influence. Objective no 3:- To find out average sales of PepsiCo in different area of Jamshedpur. Findings no:- it was found out the average sales of Pepsi and signage by analysing in the different areas of Jamshedpur. The average sales was found to have a relationship with the level of advertisement and sales promotion Objective no 4:- To find out retailers view and preference towards the PepsiCo product based on open questioner and to know the demand of the product in the market by analysing the each question filled by the retailers. Findings no:- The views and preference of retailers was found out by analysing the different questioner filled up by the retailers.
OTHER FINDINGS:
Preference:
From the research it is clear that retailers prefer to sell PEPSICO products compared to others products.
Advertising:
PepsiCos advertisements are impressive than any other company, both television and newspapers are striking media but television is more impressive.
Promotional activities:
Promotional activities increase the consumption of products, so sales also increase.
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Schemes: Pepsi provides better schemes to retailer than any other soft drinks. VISI: There should slight increase in distribution of cooling equipment.
Signage:
Pepsis signage is more in the market, so we can say that Pepsi pays proper attention on signage.
SUGGESTION:
The company has to give more importance in advertisement and invest more towards the promotion for better production and sales of the product The % of glass bottle is more therefore the company should make more of glass bottle as it is recycled and friendly towards environment The backbone of the sale is advertisement therefore the industries should think about the more attractive advertisement for the attraction of more customers and increase their brand loyalty. The average sales of Pepsi in Jamshedpur area result in high sale with increase number of signage. Distributors should give attention towards the retailers in rural areas. As from the survey we find that majority of the retailers in these areas preferred to sell PepsiCo products in adequate number and on time. It is found that there is high demand for soft drink products during the summer season so by launching `MOBILE PEPSICO SHOPS` company can attract new customers especially the college students. Strategic plans can be developed for opening new retail outlets which will have only PepsiCo products at the new constructed public places like malls, cinema, shops, shopping complex etc. which can be positioned as a refreshment zone for the consumers. VISI should be provided to the retailers, so that they can store and chill large quantity of Pepsis product.
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CONCLUSION:
Study conducted objective understanding the relationship between advertisement, sales promotion and sales. Measure emphasis were given on collective data were from the field. The findings showed that effectiveness of advertisement were high of the PepsiCo. Average sales increase was retailers were satisfied with the advertisement and sales promotion. The study provide and understanding how advertisement and sales promotion plays in influencing sale in soft drink industry.
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BIBLIOGRAPHY
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BOOKS
1. Author Kotler Philip, book name- marketing management, publisher- Prentice Hall India, fifth edition.
2. Author Kasande S.P, research methodology, publisher- nirali` prakashan, new age international, second edition.
REFERENCES http://www.mcafee.cc/Classes/BEM106/Papers/UTexas/2003/Pepsi.pdf http://marketingteacher.com/swot/pepsi-swot.html#/india http://www.nos.org/Secbuscour/24.pdf http://stepheny.hubpages.com/hub/pepsi-swot-analysis-with-other-soft-drinks http://tejas-iimb.org/articles/58.php http://www.scribd.com/doc/37732347/Pepsi-TeO http://www.imap.com/imap/media/resources/IMAP_Food__Beverage_Report_WEB_AD6498A 02CAF4.pdf http://www.decisionanalyst.com/publ_art/adeffectiveness.dai www.pepsico.com www.wikipedia.com www.google.com
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ANNEXURE
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RETAILERS SURVEY
Name of the Store: Address: Contact No: ..
1. Which brand of soft drink do you prefer to sell? a) Pepsi c) Both b) Coca-cola d) Other
2. Which Company provides you better Schemes? a) Pepsi b) Coca-cola c) Others
3. Which product of Pepsi is more demandable? a) Pepsi c) Mirinda e) 7up b) Slice d) Mountain Dew f) Nimbooz
4. What do you think which pack is more demandable? a) Glass b) PET
5. Do you have VISI- cooler? a) Yes b) No
6. If yes which brands VISI do you have?
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a) Pepsi
b) Coca Cola
c) Own
7. Which type of Promotional tools do you use? a) Sample c) Premium Gift e) Bonus Packs b) Coupon d) Demonstration f) Price Offs
8. According to you what is the reason behind success of Pepsi? a) Sales Promotion c) Better quality b) Better Supply d) Other
9. Are you satisfied with Pepsis Sales Promotional & Advertisements activities? a) Yes b) No
10. Which brand signage do you have? a) Pepsi b) Coke c) Both
11. Your recommendation for further improvement in Sales Promotion in your locality? a)................................................................................................................... b)................................................................................................................... 12. Give me two suggestions for betterment of Pepsi-cola? a)................................................................................................................... b)...................................................................................................................
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Effectiveness Of Advertising And Sales Promotion

CHAPTER-1 GENERAL INTRODUCTION

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

OBJECTIVES OF SALES PROMOTION1

Effectiveness Of Advertising And Sales Promotion

TOOLS OF SALES PROMOTION2

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

The difference between Sales and Marketing3

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

BARRIERS TO GREAT ADVERTISING5

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

CREATING BETTER ADVERTISING

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

Television advertising / Music in advertising

Effectiveness Of Advertising And Sales Promotion

including e-mail spam.

Effectiveness Of Advertising And Sales Promotion

Mobile billboard advertising

Effectiveness Of Advertising And Sales Promotion

Coffee cup advertising

Effectiveness Of Advertising And Sales Promotion

TYPE OF SINAGE GIVEN FOR ADVERTISING IN INDIA

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

3. Educate Your Prospects - Advertising can communicate information about your

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

CHAPTER- 2 INDUSTRY PROFILE

Effectiveness Of Advertising And Sales Promotion

EXTERNAL ENVIRONMENTAL ANALYSIS

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

INDUSTRY HISTORY AT GLOBAL MARKETS

Effectiveness Of Advertising And Sales Promotion

INDIAN BEVERAGES INDUSTRY

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

Effectiveness Of Advertising And Sales Promotion

SHARE OF VOLUME BY BEVERAGE CATEGORY OF INDIA

Carbonated Soft Drinks

Effectiveness Of Advertising And Sales Promotion

INDIAN BEVERAGE MARKET

17.2% 82.8% 100.0%

17.4% 82.6% 100.0%

17.7% 82.3% 100.0%

17.9% 82.1% 100.0%

18% 82% 100.0%

18.4% 81.6% 100.0%

Source: Beverage Marketing Corporation

Effectiveness Of Advertising And Sales Promotion

PER CAPITA CONSUMPTION IN INDIA