PRINCIPLES OF MARKETING

PROJECT REPORT ON NEW PRODUCT DEVELOPMENT

BY

PREFACE
Marketing is matching customer needs with the offering of the Company or in simple words it is meeting needs profitably. There are different factors which influence the sale of goods. A number of variables come into play when we consider the sale of C.S.D.(Carbonated Soft Drink ) products. The basic reason for this is seasonal affect on purchasing the product, slowly resulting in the consumer loyalty and the relationship between dealers, distributors and the company. Some other important variables that affect the C.S.D. products are: Visibility of the product Feasibility of the product Availability of the product Perceived quality of the product Distribution channels used Distribution is the channel that bridges the gap between an organization and the end user/customer. This bridge has to have a strong foundation and has to be repaired from time to time. Those

companies that pay too little attention to their distribution channels suffer damaging results.

KEY AREA
The key area of my research report was The study of promotional activities & channel distribution of PEPSI. The company had divided his retail outlets on the basis of area wise and character wise. Each of the division is having mainly three types of outlets. 1) AREA WISE: - The area of my Research report was PEPSI. and according to the company the whole training area was inner circle, outer circle, & intermediaries. 2) OUTSKIRTS: - These areas are quite away from the main city and the main market, or the interior areas of the town. 3) CHAR ACTER WISE: Again there is a division of outlets on the basis of characters (type of work done by the retailers) and there are again three types of outlets. CONVENIENCE OUTLET: - These types of outlets include general stores, beetle shops, stationary shop, medical shop and such type of other shops. GROCERY OUTLETS: - These types of outlets include grocery stores which indulge in selling of foods and related things used in the home. EATERY: - It includes restaurants, fast food joints etc

SIGNIFICANCE AND THE NEED OF THE STUDY

Market research is concerned with the authentic and objective collection, analysis and evaluation of information about specific and practical aspects of marketing problems in order to help the management in making effective decisions. Market research is not an end in itself but it is a means to an end. My study on this project will help us to know its strengths and weaknesses with respect to the Packaged Water market and to make strategic future decision to improve its market awareness and penetration and thus finally enhance its sales. Primarily this study will enable the company to evaluate its position among the competitors in respect to all the important factors related. Secondarily this study will enable the company to develop a fruitful correspondence with the leads generated during the tenure of the study conducted.

OBJECTIVE
To study the Marketing Strategy market share of PEPSI Aquafina. To study the dealers and retailers sales trend, of Package Drinking Water industry and their products. To determine the visibility of the Aquafina on the dealer outlets. To determine the preference levels of Aquafina in comparison to the others. To find out the dealers perception about the Pepsi product. To find out the various factors influencing purchase of the Pepsi To find out the expectations of the dealers from the company.

LIMITATION
As a student of management it is very essential for me in shaping my practical knowledge about the existing market position of the various brands of Packaged Water. However this study has certain limitations which can be attribution to various factors. Time limit is not sufficient enough to collect all the data to complete the project report. The topic itself is quite extensive .It needs comparative analysis and study, which is quite impossible within the time limit. Some confidential information are not allover to be analyzed which might have more relevance from the study angle. Some retailers are not alternative when they will fill up the questionnaires. The Major limitation is that the retailers as well as some people are hesitant to provide certain information. . This project done in Ranchi but it doesn't include the rural areas. As we did not get an opportunity to go outside of Ranchi. The project done in Ranchi may not represent the figure of whole India. The study was small in size together accurate information about the project.

METHODOLOGY
Marketing research is the backbone of marketing. The main objective of my study was to get information from the dealer regarding the sales of the Aquafina Packaged Drinking water of Pepsi, and to look at the other feasible channel for the sales of those products. Meaning of Research: Research in common parlance refers to a search of knowledge. One can also define research as a scientific research for pertinent knowledge or information on a specific topic. This is a systematic and objective identification, collection of data, analysis, dissemination and use of information for the purpose of assisting management in decision making related identification and solution of problem in the market. Sources of Data : Data, which is a vital aspect in any research, has been colleted through various resources. The sources range from the company to the customers. This has been segregated under two heads. Primary Data : Primary data is the first hand information which has been collected directly from the retailers. This data has been obtained

by administering two questionnaires: one for Every Dealer Survey and the other for Brand-Pack Availability.

Secondary Data : The Secondary data are an integral part of any research study or a research report as it provides information on key variables, which play a major part in the actual research. From internet, journals, magazine, newspaper, data provided by the company. Method of study I have divided my all study into three phases which are 1. Rout visit 2. Outlet survey 3. Product survey .

Research instrument
Questionnaire Personal interview Sampling design Sampling design is a conductive approach, which gives the research work a factual as well as conclusive framework. It contains sample size, which is basically a true representation of the target population

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Outlet type CONVINIENCE GROCERY EATERY Commencement of Fieldwork:-

Outlet numbers 96 61 23

The fieldwork included the process of getting the questionnaires filled up and also getting all the relevant information regarding the visibility of Aquafina for future business decisions.

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HISTORY
PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's principal businesses include: Frito-Lay snacks Pepsi-Cola beverages Gatorade sports drinks Tropicana juices Quaker Foods

PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the worlds fifth-largest food and beverage company, with 15 brands each generating more than $1 billion in annual retail sales. PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $85 billion. Many 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. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

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PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles.

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INTRODUCTION
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. At Pepsi-Cola Company, consumer satisfaction is of the utmost importance. In response to consumer interest, this page is designed to provide ingredient information frequently requested by our consumers. We are initially providing information on caffeine as set forth below and we expect to add information in the future about other product ingredients such as sweeteners and colors. PepsiCo is a world leader in convenient foods and beverages, with 2005 revenues of more than $32 billion and more than 157,000 employees.

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PEPSICO IN INDIA
Gold Spot is considered as the first branded soft drink to be introduced by Parle in the early forties. Coca-Cola was the first foreign soft drink to be introduced in Indian markets. The Coca -Cola company entered India in early fifties when four bottling plant were set up at Bombay, Kolkata, Delhi and Kanpur. CocaCola enjoyed a good beginning and dominant market. Parle exports private limited, the major domestic player, later in 1970 introduced Limca a lemon soft drink and Cola Peppino. PepsiCo entered in Indian market in 1990, and then Pepsi started its bottling plant and corporate colour blue as the advertisement. When Pepsi entered in Indian market Parle was holding 70% market share in total soft drinks so Pepsi concentrated on availability of its brands and continuous attachment by its advertisement. In the year 1991, production of Mirinda and 7up started and the production of Slice, Teem and Coca-Cola came back and launched its product in Agra with Parle Exports Private and gradually took over the same company. Pepsi entered into the cloudy Lemon category by launching its Mirinda Lemon in1988.

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In 1993 Pepsi had thirteen bottling plant units. In 1996 the number went up to twenty seven .More plants are being set up. Recently in May, 2001 production of Aquafina was started by Pepsi. In the same year, another flavor of Mirinda Apple was also launched. Pepsi is one of the major sponsors of cricket tournaments in India as well as other sports like football and hockey. In Mohali, Punjab, it has set up a Cricket academy to develop young budding cricketers. Apart from the business Pepsi concentrated its mind in the social problem of India. (E.g. unemployment, poverty etc.). Most of the bottling plants of Pepsi are located in the backward areas thereby giving huge employment opportunities in these areas. Pepsi is a responsible company undertaking many social projects in and around the bottling plants. These include supports to the education centers, sponsoring inoculation camps, providing free health checkups, sanitation drives etc.

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PEPSI DELIVERS:

Consumer preferred brands Equipment that delivers top quality Pepsi-Cola beverages Marketing that keeps Beverages sales growing Service never down

VISION & MISSION

Mission 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. Vision 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. 17

PEPSI COLA BRANDS

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AQUAFINA- PRODUCT INFORMATION

Enjoy the crisp, refreshing taste of Aquafina 100% pure, non-carbonated, purified drinking water. The consistent purity and great taste of Aquafina are guaranteed by means of a state-of-the-art purification process that includes reverse osmosis and carbon filtration. Since its debut in 1995, Aquafina has won over consumers with its great taste and purity. Aquafina is currently America's #1 selling bottled water brand in measured retail channels. Its true. Water is good for you. The more you drink, the better you feel and since our state-of-the-art HYDRO 7TM purification system removes substances most other bottled waters leave in, you get pure water and perfect test every time.

INDIVIDUAL SIZES: 500- ml bottle 1.5- liter bottle

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HOW PURIFY?

To bring you water as pure as Aquafina, they create the state of the art Hydro-7 purification system. See 7 step of Aquafina to pure water and perfect taste.

TM

1. Perfiltration

With this first filter, that says Goodbye to tiny-sized particles in water.

2.

Polishing Filter

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Any smaller particle that gets through, this first round of polishing filter will catch them.

3. High-intensity Light

At this stage, a burst of high-intensity light imparts energy to the water stream to protect against naturally occurring organic substances in the water.

4. Reverse Osmosis (R.O.)

Reverse Osmosis uses pressure and a hyperfilter to remove over 98% of the Total Dissolved Solids (TDS) from our water.

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5. Charcoal Filtration

Time to isolate those trace elements that can affect the taste of water by using a charcoal filter.

6. Polishing Filter

Heres where every H & O gets a nice polish. Not with a soft cloth. But with a polishing filter thats designed to make your water crystal clear.

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Ozonation

Companys final seals in the purity. By passing purified oxygen

molecules are brought together as assurance that unwanted particles are kept away. After theyve done their job, they revert back to double oxygen

molecules ensuring you enjoy pure water and perfect taste with every bottle of Aquafina.

Pure Satisfaction

Thats what you get when the only thing you taste in your water is water. Pure water, Perfect taste, Aquafina.

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WATER FACTS

What is Aquafina?

Aquafina purifies its water with the HydRO-7 purification system.

TM

The HydRO-7 purification system delivers water with an average TDS of 4

TM

ppm, which is 2.5 times lower than the FDA standard of 10 ppm. Aquafina delivers pure water with perfect taste every time.

Whats bottled water?

Bottled water is regulated under standards set by both the Environmental protection agency and food & drug administration. The food & drug administration total dissolved solids TDS as a measure for purity. TDS is sum of all dissolved solids in water measured in parts per million (ppm) All bottled water contains TDS. Spring water is delivered from an underground formation from which water flows to the earths surface and is treated to remove bacteria and other organic material. 25

 FDA regulations mandate a maximum TDS of 500 ppm for spring water. Purified water is sourced from EPA regulated water systems that already provide safe drinking water. FDA regulations mandate a maximum TDS of 10 ppm for purified water.

HEALTHY HABITS

Keeps the water flowing year round, even during cold months When its cold outside, your body needs extra energy to maintain the right temperature. Drinking water can do that and help keep you warm.

Make sure your children drink enough water Children drink water to balance their intake of other beverages- especially during activities.

Drink plenty of water throughout the day Make it easy. Carry a bottle of water when you commute to work or run errands.

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Dont substitute caffeinated or alcoholic beverages for water Have a glass of water with each caffeinated or alcoholic beverage.

Develop good water drinking habits now Your thirst signal decline with age, so its important to develop the habit of drinking plenty of water even if youre not thirsty.

Dont wait until you are thirsty to drink water By the time you feel thirsty, youve probably already lost two or more cups of your total body water.

Start and end your day with water Your body losses water when you sleep, so drink a glass of water before going to bed and again when you wake up

THE IMPORTANCE OF WATER

Although a person can live without food for several days, a person can live without water for just a few days.

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 At normal activity levels, you lose 2-3 cups of water a day in perspiration. But during an hour of vigorous exercise, you sweat out approximately a quart of water. Water plays a vital role in regulating your body temperature at a perfect 98.6 degrees, delivering nutrients and oxygen to cells, removing waste, cushioning joints and protecting organs and tissues. Up to 60% of your body is water. Your brain is 75% water, blood is 82% and lungs are nearly 90% water. Water ranks first as the single most abundant substance in the human body. Next to oxygen, water is your bodys most important nutrient.

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KEY ACTIVITIES INVOLVED IN NEW PRODUCT DEVELOPMENT PROCESS AT PEPSI COMPANY

a) Idea b) Initial screening c) Preliminary Investigation d) Pre development business and financial analysis e) Product development f) In house product tests g) Customer product tests h) Trail production i) Precommercialization business analysis j) Product start-up k) Market launch

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NEW PRODUCT DEVELOPMENT PROCESS AT PEPSI COMPANY

This process starts with the ideation for the new product or innovation in the existing line of products. Mostly the source of the idea comes through the ongoing marketing planning and as well as from the ongoing corporate planning. Afterwards the idea passes through the first gate that is called the initial screen. At this point the idea is matched with the policies of the company that whether it is strategically fit with the companys policies and approach or not.

1. INITIAL SCREENING

This is the first step after the ideation. The initial screening is a basic rough picture which is much needed before the launch of any type of new product. Every company indulges this step as a prior to all steps. PepsiCo does the same thing at the launch of their new deals. The Aquafina water product was already researched as well as launched in North America. In India they just imitated the previously launched product; in this they captured new market; initial screening was the first step toward launching Aquafina in India; the below figure shows the first gate of whole process is initial screening.

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Initial Screen

Idea
e at G 1

Stage 1

Ideation

Preliminary Investigation

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2. PRELIMINARY INVESTIGATION:

This is the first stage of the whole process, this stage thus provide the preliminary market assessment as well as technical information- at low cost & in as short time- to enable a cursory and first pass financial analysis as input to gate 2. because of a limited efforts and depending on the size of the project, very often stage one can be handled by a team of just several people perhaps from marketing and from technical group. The below described preliminary market and technical assessment in Pepsi company.

a) PRELIMINARY MARKET ASSESMENT

A preliminary market assessment is one facet of stage 1 and involves a variety of relatively inexpensive activities; In this stage Pepsi worked for identified market size, market potential, and the scope of the water project in the India market, as they researched that most of the disease start from the water that people drink that is not favorable for their life; and selected major cities of the India. The preliminary market assessment has been done by the Pepsi mostly in other countries.

This assessment is usually the in-house assessment where we convey message to the headquarter at North America that there is a demand of drinking water, this assessment is done by our local managers, we observe that this particular drinking water should be 32

launched for this particular group, because people need it. There is so many local companies serving major portion of the Indiai markets, only nestle company was providing the better purified water, thats productivity was not able to meet the demand for their product. So on that basis market demand for water was high and supply was low, customers ask for nestles but not available in market they use low quality product. So, we organize analysis which are rough and that tells us that should we launch this new product or not.

b) PRELIMINARY TECHNICAL ASSESMENT

It involves a quick & preliminary in-house appraisal of proposed product. In this stage every company like Pepsi think about technical assessment, what technology will be used to produce the product to satisfy customers need. In this process they gather information related water purification system and they reached at the decision, Aquafina purifies its water with the HydRO-7 purification system. This system provides the
TM

customer with quality drinking water as much as nestle provide to their customers.

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After this the concepts and things that are developed in the first stage are passed thought the second gate that is second screen in which the thorough screening is done, e.g. the technology is to be considered that whether the technology is present in the company or not for the new product. Do the developed concepts strategically fit with the organizations production process or not? Is there any need of this new idea in the market or not? The perceptual mapping is done by the marketing research department.

Second Screen

Stage 1

e2 at G

Stage 2

Preliminary Investigation

Detailed Investigation

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2. DETAILED MARKET STUDY

After this gate the second stage of the product process starts that is detailed investigation. As shown from the name detailed investigation in this stages the commercial viability of the new product. The financials of the new product are made on the basis of past experiences and the future estimates. The project evaluation is being done here.

Market study fir this new launch has been done but it is not that detailed as it should be and as we do in other but few countries, in other countries like North America, China, Japan etc. Detailed market study was conducted at India before the launch of Aquafina. At that time it was analyzed that Aquafina would get a success in all market of India, the Indiai market is well judged by the Pepsi Company and here basically people want to change themselves very soon because Pepsi is well known brand worldwide, Aquafina bottled water ads written that its product of Pepsi Company so it make good impression for consumers.

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3. PRE-DEVELOPMENT BUSINESS & FINANCIAL ANALYSIS

There is not much pre-development business practices which they do because they acquire simple strategy that how much we have to produce, in how much time, are almost similar to over all their product, process of production is much similar to their other beverages products so they didnt faced any problems regarding machinery. Financial work is completed and there was little risk involved in launching water product (Aquafina). We have done several analyses at pre-development stage which we cannot disclose to all.

Decision on Business Case

Stage 2

e3 at G

Stage 3

Detailed Investigation (Build Business case)

Development

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In the third stage gate of the process for proceed further. After that the new product concept is entered in the phase of development, the third phase of product development process at Pepsi Company.

4. PRODUCT DEVELOPMENT

In the third stage, the development for the new product is done, the product specifications are made and technicalities are being set for the production. The chief engineer heads the new product team and played the following role: Coordinating broadly, not just in engineering but also production and sales Coordinating the entire project from concept to market Specification, cost target, layout and major component choices, making sure that each bottle contained similar minerals as written on the bottle. Communicating directly and frequently with designers, top management and engineers.

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Post Development Preview

Stage 3
e4 at G

Stage 4

Development

Testing & Validating

Aquafina has been made for the internal trials and test by the company has been done. This all done in the testing and validation process, the fourth stage, which also includes the customer tests. The company has got the database of their customers so they test their products by trial test in-house and with customers.

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5. IN-HOUSE PRODUCT TEST

The Pepsi Company follows high TQM standard as it is certified with the ISO standards, they maintain their quality they have quality control department, Quality assurance department, having several laboratories for quality check. Aquafina product has its separate all of the above written departments, Aquafina water bottle is certified with ISO 9001 standards. So in this they control their product quality performance every time. Quality assurance department guarantied that every drop has same test, and quality.

6. CUSTOMER PRODUCT TEST

The fourth stage, which also includes the customer tests. The company has got the database of their customers so they test their products by trial test in-house and with customers. This was not held at Indiai market, we as member was the companys customers testing our product. This type of test held in North America, and Japan. Our customers are fully aware of our taste; we know what they expect from us and what the needs of our customers & we are actually providing to them.

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7. TRAIL PRODUCTION

The trial production is also done in this development process, because the main focus of the company at the end of the process is based on three things that are as follows:

a) Customer satisfaction b) Time to market c) Cost

In the trial production the production time is being improved. Because the time to reach the market is important for the company. At last the project is again analyzed after the changes implemented in the development and validation & testing stages.

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8. PRECOMMERCIALIZATION BUSINESS ANALYSIS

As far as the commercialization is concerned, all the decisions are made that how it will work and how well be operating a certain thing. Business analysis are almost done and financial analysis are also at the last stage and about to complete, as every business took some time to finalize its decisions.

Precommercialization Business Analysis

Stage 4
e at G 5

Stage 5

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Testing & Validating

Full Production & Market Launch

In 5 stages the proper and full production process starts and the new products are ready to enter in the market

9. PRODUCTION START-UP

Aquafina water bottles have fully started into production, have good capacity to satisfy customers demand, still supply meets the market requirement, as soon as we capture major market share we will enhance our plant.

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10. MARKET LAUNCH

For the launch the target market demographic has been studied and through various channels the new product is launched. Now Aquafina have covered majors cities of India, as in Karachi Aquafina is available in major stores, such as Agas, motas, cannes mart, and sanis supper store; we also other small stores, as well as institutes,

restaurants, hotels, etc. The main marketing task for this product is to make availability for customer.

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SWOT ANALYSIS
Strength:
Brands image Financially sound Distribution channel/coverage Technology advancement Quality Price competitive Personnel aspect Market expertise International component High promotional activities

Weakness:

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 New to the company Low market share

Opportunities:
Capture the market New areas Market potential Brand awareness Increase in investment

Threats:
Higher availability of competitors Direct competitors are about to enter in Indiai market. Technological environment New in market

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4 Ps OF AQUAFINA

PRODUCT

In many countries, Aquafina is preferred by the consumer who likes quality goods. . Aquafina is certified with ISO 9001 standards. Aquafina come with the new opportunity for the company to come into market. Aquafina serves consumer worldwide.

PRICE

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As in India price allocated for the bottled product is very competitive as nestle bottle water 500 ml Rs: 15 as Aquafina 500ml price Rs: 10 only, for 1.5 liters nestle priced Rs: 25, Aquafina 1.5 liters bottle Rs:20 only. But in the international market may be higher then the Indiai market.

PLACE
As Pepsi is a multinational company, Aquafina is one of the good selling brand, has a proper coverage internationally and as well as domestically.

Aquafina has captured international market as well the following countries where you will find Aquafina: Australia Brazil Canada China Finland France Japan Malaysia India Singapore

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 USA

PROMOTION
In India Aquafina is advertised only thought the printed media, it includes, signboards, newspapers ads, magazine ads, and so on. As the printed media is the easy and less costly step toward publicity of the product. So Aquafina is new in the market does not want to spent more on the TV ads, as internationally they have ads on internationally TV Channels. The standard of advertising they are maintaining through out the world.

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PROMOTIONAL ACTIVITIES Sales promotion a key ingredient in marketing campaigns consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by customers.
Personal Selling

Advertising

Sales Promotion

Direct Marketing

Public Relation

Promotional activities play a key role in the entire marketing effort being carried out by company. These promotional activities
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generate more sales as well as create a good image of the product in the mind of the customer. The promotional tools used by company for its marketing activities are Point of sale display Incentives to retailers Sales promotion through sponsoring special events Sales promotion through various schemes Advertising

POINT OF SALE DISPLAY There are many ways to communicate with consumers at the point of sale. In-store advertising includes shopping carts, cart straps, aisles and shelves. The appeal of the point of sale advertising lies in the fact that in many categories consumers make the bulk of their final decision regarding purchase in the shop. Marketing management Kotler, Killer, Koushik and Jha This is particularly true for those brands, which have very low customer loyalty. Soft drink is one such product in which most of the time buying decision is made at the spur of the moment based on the brand, which is readily available and catches the eye of the customer. For this reason company invest heavily in this category by supplying the shop owners with stands so that they can keep
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the bottles outside on those stands so that customers have an eye contact with them as he/she is entering the shop. Also Pepsi supplies the shop with visi coolers with a glass front so that cooled bottles can be seen by the customer when he/she is making a decision on the flavor that the person is going to buy. Apart from this company takes keen interest in other type of strategies like painting the walls of the shops with the Pepsi logo, putting up glow signs and dashboards with the Pepsi logo and the shop name. This increases the visibility of the brand among the customer when he/she enters the shop.

INCENTIVE TO RETAILERS Another method of sales promotion being used by companyis by running special incentive schemes for retailers. This type of promotional strategy is conducted mainly during the peak season i.e., from March to July. ADVERTISING Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Marketing management Abraham Kawshik & jha.

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 Advertising is also known as a process of Telling & Selling. Drawing the attention of consumers to any product, object, purpose or idea by using non personal media of communication is termed as Advertising. Through advertising the advertiser intends to spread his ideas about his products/offerings among the customers and prospects. Advertising can also defined as the action of attracting public attention to a Product or business," is one of many marketing tools you can use to draw in more customers with greater frequency. What Advertising Can Do For Your Business Remind customers and prospects about the benefits of your product or service Establish and maintain your distinct identity or "personality" Enhance your reputation Encourage existing customers to buy more of what you sell Attract new customers and replace lost ones Slowly build sales to boost your bottom line

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1.Using Other Promotional Avenues The theme of your advertising reflects your special identity or personality, and the particular benefits of your product or service. For example, cosmetics ads almost always rely on a glamorous theme. Many food products opt for healthy, all-American-family campaigns. Automobile advertising frequently concentrates on how the car makes you feel about owning or driving it rather than performance attributes. Five M of advertising:
MESSAGE MESSAGE What Whatmessage message should shouldbe besent? sent?
What Whatare arethe the advertising advertising objectives? objectives?

MISSION MISSION

MONEY MONEY How Howmuch muchcan can be spent? be spent? MEDIA MEDIA What Whatmedia media should shouldbe be used? used?

MEASUREMENT MEASUREMENT How Howshould shouldthe the result be result be evaluated? evaluated?

A very important part of advertising is to decide the medium of advertising and how much to spend on each medium. The different mediums used by Pepsi are: TV
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 Hoarding Newspaper/Magazines Radio Product of sales material(painting, glow signs, D. Board)

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OBJECTIVES OF THE ADVERTISING STRATEGY:Informative advertising means telling the market about new product, suggesting new uses for a product, informing the market about the price change, explaining how the product works etc. Persuasive advertising means building brand preference, encouraging customers to switch to their product, changing customers perception. Reminding consumer that the product may be needed in the near future, reminding consumers where to buy it. Thus advertising is a fascinating and important aspect of marketing. Advertising appeals to all irrespective of age, caste, sex, borders etc. Words which can be associated with advertising are fun, humor, warm, entertaining, persuasive, boring, and irritating. Advertising in simpler words is communication and persuasive and leaves a mark in the mind of the consumer. Thus it is natural to look to theories, concepts and research findings from psychology to understand and mange the whole process.

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MIDDLEMAN - INTERMEDIARIES. The various kinds of middlemen are: 1 Agent There are middlemen who don't take any title to goods but have possession of goods and take active part in the marketing mechanism rendering all services required. They represent either seller or buyer and not both. 2 Broker: Brokers are agent who have no direct and physical control of the goods in which they deal they represent either the buyer or seller or both in negotiating purchases and sales for their principals. Broker's powers as to price and terms of sale are limited by the principal. 3 Dealers: Dealers are persons who buy or -sale products at either retail or wholesale basis. Distributors: It is generally tenl1 used to mean wholesalers. 4 Jobbers: The term is used in certain trade and localities to designate special types of wholesalers. They are usually found in stock markets.

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5 Rack jobbers: A whole selling business unit that markets specialized lines merchandise to certain types of retail stores and also provide special services such as arrangement, maintenance and stocking of products in display racks. The rack jobbers, usually not always put his merchandise in the store of the retailer on consignment. Rack jobbers are most common in the food business. 6 Resident Buyer: An agent or a person who specializes in buying on a fee or a commission basis chiefly for retailers is known as resident buyer. 7 Retailers: A merchant or occasionally on agent whose business is selling directly to the ultimate consumer. 8 Wholesalers: A business unit which buys goods from the producer and resales to a retailer and other merchants or to industrial, institutional and commercial users but which doesn't sale significant amount ultimate consumers. 9 Commission Houses: These are also refereed to as Commission merchants or agents. These agents usually exercise physical control over the goods and negotiate the sale of goods. They handle the

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commission house usually enjoys more powers over the prices, method and terms of sales than the brokers. They generally barrage delivery extend necessary credit. Collect the sale price deduct there fees (commission). 10 Oscillation Agency: These agencies perform or assist in the performance of one or more marketing functions, but they don't take title to goods nor negatives purchase or sale. Common type of this kind is bank insurance company, railways advertising agencies. 11 Consumer co-operative: A retails business wound and operated by ultimate consumers to purchase and distributes goods and services lamely to the member

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SUSTAINABLE ADVANTAGE
Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace: 1. Big, muscular brands; 2. Proven ability to innovate and create differentiated products; and 3. Powerful go-to-market systems.

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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.

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MARKET SHARE OF COMPANY

Market Share of Product

SL

Market Share of Filled stock Est. Mark. Share 49% 51%

No Product 1 Pepsi 2 Coca Cola

pepsi coca cola

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Market share of glow signs board: Market Share of Glow Sign SL No Product 1 Pepsi 2 Coca Cola Est Mark. Share 25% 75%

Glow signs are the boards on the top of a shop with neon lights in the back ground with works as a sign board for the shop. It is an effective marketing strategy.

Coca cola Pepsi

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Market share of VISI cooler: Market Share of VISI Cooler SL No 1 2 Company Pepsi Coca Cola Est.Mark. Share 30% 70%

This is one of the most important supports for the dealers which help them to keep the product chilled and fresh.

pepsi coca cola

How much of the business you do, from Pepsi?

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Business from different Outlet SL Type of Est. Mark. No 1 2 3 Outlet Convenience Grocery Eatery Share 60% 15% 25%

These three kinds of market shows the total market area which is divided on the basis of the character (type of work done by the retailer).

Business from different Outlet Est. Mark. Share

1 Conveience 2 Grocery 3 Eatery

Interpretation Convenience shop has a highest percentage of business from Pepsi and followed by Eatery shop and Grocery shop.

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How frequently do you buy PEPSI? Frequency of buying the Pepsi SL No 1 2 3 Time Period Daily Alternative Weekly Percentage 20% 70% 10%

This is related to the frequency of Pepsi vehicle that a dealer wants, according to the need and demand of the product in that particular area

Frequence of buying the Pepsi Percentage

1 Daily 2 Alternative 3 Weekly

Interpretation
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Most of the dealers want a frequency of Pepsi Vehicle on the basis of alternative days.

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CONCLUSION

In this 3 month research study I conclude the following things.

In India Pepsi Company launched water product, as water product was already available in the market, the company saw in bottle water opportunity to come into the market by serving people with better quality at low cost. Its totally new to the company but its already in the market.

Aquafina bottled water serves domestically as well as internationally, domestically they serve major cities of India.

Aquafina have similar process steps that have written in the new product development book, I have already discussed those steps in this report.

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RECOMMENDATIONS

Company should introduce their product into the other cities of India as like as Pepsi Brand. Company should maintain the quality of the bottle water Government should reduce taxes on the manufacturing companies. Company should be registered They should introduce large bottle for family packs, such as 19 liter bottles, 12 liter bottles. Maintain low cost as they are currently serving the markets of India. Company should have recycled program

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BIBLIOGRAPHY

Internet:

www.pepsi.com www.pepsiworld.com www.pepsico.com www.aquafina.com

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