Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
INTRODUCTION
The eight weeks Summer Training is very important for a student of MBA this type of study gives some practical knowledge to MBA students and practical knowledge is more useful than theoretical knowledge for any one. There is no certain formula for any particular problem but the aim of this study is to develop the ability of decision making. Right decision at right time itself helps an organization to run smoothly.
The training in any organization gives us an idea of different marketing activities and main emphasis is given on Promotional activities aspect and also it is seen how business is taken tactfully when any problem comes to an executive, the way of problem solving, right decision making and knowledge of different types of marketing activities gives much importance to this study. Though only in 60 days it was not possible to understand it so deeply but an over all ideas would be developed.
Knowledge attains maturity and perfection through application in practical field. Application of Management Principles in all branches whether product, personnel, finance, marketing etc. results is more efficient and effective utilization of available resources. To achieve the purpose I have done my summer project training from Lumbini Beverages Pvt. Ltd. Hajipur unit. The topic given me is A B RIEF S TUDY D ISTRIBUTION
SYSTEM OF ON
IN
P ATNA .
This report has compiled firstly in partial fulfillment of the requirement for MBA, secondary to share the practical knowledge and experience gained as result of continued association with company is marketing branch. The detail mentioned in this report is based on real situations. Since the reader would like to know the general detail of two cola giants, therefore a chapter includes a discussion on theoretical aspects of comparative study and its application for the industry in marketing is also include. Further to help the reader in understanding the findings, graphical representation, conclusions and suggestions are also includes, which very much helps Lumbini Beverages Pvt. Ltd., Hajipur to know where he stands in the soft drinks market. what is the distribution system of Pepsi? What is the market share of Pepsi and what Pepsi is doing against Coca-Cola?
I frequently hope that this project report would be considerable help to the management for developing strategies in those areas.
To study the distribution system of Pepsi and its competitors. To identify the factors which persuade the retailer for sale of Pepsi. To study the companys position in the soft drink market. To study the exclusive outlets of Pepsi and its competitors. To study the factors influencing distribution system of Pepsi. To study the promotional activities in Pepsi. To study the market share of Pepsi against its competitor. To identity, the organizational features of Pepsi .
Research methodology is a way to systematically solve the research problem. When we talk about research methodology we not only talk about research but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique why we are not using other so that result are capable of being evaluated either by researcher himself or by others. Research methodology means the methods carried out to study the problem, analyzing it and represents the findings of the problem and give some suggestion regarding the problem. Steps in research methodology:
(1) Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. (2) Development of an Approach to the Problem
Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations.
(3) Research Design Formulation A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. More formally, formulating the research design involves the following steps: 1. Secondary data analysis 2. Qualitative research 3. Methods of collecting quantitative data (survey, observation, and experimentation) 4. Definition of the information needed 5. Measurement and scaling procedures 6. Questionnaire design 7. Sampling process and sample size 8. Plan of data analysis (4) Collection of data
Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through mail (traditional mail and mail panel surveys with prerecruited households). Proper selection, training, supervision, and evaluation of the field force help minimize data-collection errors
. Data can be collected from two important sources Primary Data Secondary Data
Primary Data The data, which collected for the first time and afresh, is known as primary data. Primary data can be collected by various methods such as observations, Interviews, Schedules, and Questionnaires. Under this project the primary data collection method used is Questionnaire method. Secondary Data The data which have already been collected by someone else and which have already passed through the statistical process is known as secondary data. It can be collected through books, magazines, newspapers, and company publications, websites. (5) Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or keypunched on to magnetic tape or disks or inputted directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed,
while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously.
(6) Report Preparation and Presentation The entire project should be documented in a written report which addresses the specific research questions identified, describes the approach, the research design, data collection, and a data analysis procedure adopted, and presents the results and the major findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact. For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations where little information is available from other sources, as in the case of radically new products.
Since the study is exploratory in nature. A personal interview with each retailer was aid of questionnaire was selected as the method of obtaining data the questionnaire to use in Patna to facilitate tabulation and analysis of data were designed for segment retailers.
Types of Research Types of Data Source Research Approaches Research Instruments Sampling Size Sample Size Sampling Unit Types of Universe Types of Questionnaire
Descriptive Primary & Secondary Observational & Survey Questionnaire Random Sampling 200 Customers in Patna city only All the prospective customer of Pepsi Structured
o The Market survey is conducted to make a comparative study of the problems endured by the retailers of the Pepsi Company. o The geographical scope of my survey was limited up to a part of Patna and its different market areas. o The survey covers a wide range of activities and the factors, that influences that shows the increase or decrease in the market share of the Company. o The survey is a sample of 200 retailers which was taken from different market areas. o To identify the market growth potential of the companys products through strengthen of the channel partners.
10
1. Since the product under study was a consumer goods which requires a large sample to have a correct study, a sample size of 200 Respondents was too small for it. However, time & money did not allow Researcher to have a large sample. In addition, to manage a large sample would be difficult by Researcher alone. 2. Duration of study also limited for further intensive study. 3. Mostly stress was given on primary data, as it was difficult to collect Secondary data from organization & distributors. 4. The sample selected is not purely random sample but it is convenient so that the result of the survey do not have any high degree if statistical significance. 5. The result of survey are based upon crucial assumption like(a) The respondents know right answer to the question put to them. (b) They are wiling to give the right answer. (c) Strictly based on the responses of the Retailers. (d) Difficult to ascertain the authenticity of their statement. 1. It is very difficult to influence and get right answer from old mentality Retailers. 2. Region i.e., Urban area therefore the result are applicable to Patna region only these findings may not have much relevance in other regions of different from rest of the country.
11
3. All the conclusions, suggestions & recommendations will be made in the feed back obtained from survey based on responses given by the respondents.
UTILITY TO MYSELF
It will help me when I will go to work in the organization. Whatever experience I have will help me to deal with people. To work in any FMCG sector, this experience will give great exposure.
It will help the organization to know the actual condition of distribution system It can help the organization to establish strong distribution channel. It can promote the organizations to improve sales than competitors brand by using data that I have identified.
12
CHAPTER 2
Company profile
13
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."
15
16
It is operating with the help of distributors all over Bihar exclusively stocking Pepsi range of products. It sells its product through different distributor of PEPSI in Patna. Though this plant has just completed eleven years of establishment, yet in the very first season it has given its competitor very tough fights.
TDM: territory development manager ADC: area development coordinator C.E: customer executive
17
2.5 PRODUCT RANGE The product range produced by Lumbini Beverages Ltd. is as under:Brand Pepsi Mirinda Mountain Dew 7up Slice Aquafina Flavors Cola orange lime Lime Clear lime Mango Purified water Size(ml) 200,300,600,1500,2000. 200,300,600,1500,2000. 200,300,600,1500,2000. 200,300,600,1500,2000. 200,300,600,1500,2000. 250,500. 500,1000,5000
18
CHAPTER 3
19
Distribution Alternative
Intensive Distribution
Selective Distribution
Exclusive Distribution
Intensive Distribution:-
used to distribute the product. This is particularly useful in the products like soft drinks where distribution is a key success factor. Here, soft drink firms distribute their brands through multiple outlets to insure there easy availability to the customer. Any possible outlet where customer is expected to visit is also an outlet for the soft drink.
Selective Distribution: - This alternative is the middle path approach to distribution. In which the firm selects some outlets to distribute its products. This alternative helps focus the selling efforts of manufacturing firms on a few outlets rather than dissipating
20
it over countless marginal ones. Selective distribution can help the manufacturer game optimum market coverage & more control but at a lesser cost than Intensive Distribution.
Exclusive Distribution:-
when the firm distribute its brand through just one or two
major outlets in the market who exclusively deal in it & not all competing brands, then we say it is using an exclusive distribution strategy. In case of soft drink exclusive outlet, it deals all available products in one outlet. This is a common form of distribution in products & brands that seek a high prestigious image. The firm also hopes to get the benefit of aggressive selling by such outlets.
Manufacturer
Dealer A Retailers Dealer B Dealer C Dealer D
Customers
Customers
Customers
21
Types General Store Pan Shop Sweet Shop juice Shop Dhaba/Canteen Others
Numbers Of Outlet 34 22 30 62 46 6
22
Types of Outlet
70 60 50 no. of 40 shop 30 20 10 0
Juice shop
canteen Others
type of shop
On the basis of the above graph, juice and canteen shop are the highest no of the retail / outlet of the Pepsi. It contains about 50% in the total types of the outlets. After that canteens or Dhaba are the second highest outlets of Pepsi and Coca-Cola i.e.23%.
B.
Market Share :
Sample size- 200
Sale Monthly Sale Of Pepsi Products Monthly Sale Of Coca-cola Products Total Sale
23
Market share
\\\
40%
60%
The above chart indicate that the monthly sale of Coca-Cola products was better than the monthly sale of Pepsi products (approximately). Thats why Market share of CocaCola product is better than the Pepsi.
Pepsi 54
Mountain Dew 5
Mirinda 18
7UP 15
Others 8
24
Market Share among Pepsi Product. 60 50 40 Market share in(%) 30 20 10 0 Pepsi Mountain Dew Mirinda Products 7UP Others
This graph shows that Pepsi has highest market share i.e. 54% than other Products such as Mountain Dew has 5%, Mirinda has 18%, and 7Up has 15% share in overall sell of the Pepsi.
D. EXCLUSIVE OUTLETS:
Outlet Exclusive Outlet Of Pepsi Exclusive Outlet Of Coca-cola Mixed (Pepsi & Coca-cola)
Number 17 29 154
25
Exclusive Outlets
Pepsi Coca-cola Mixed
76%
15%
9%
The above graph indicates that the percentage of the mixed (Pepsi & Coca -Cola) outlets were extremely more than the separate Exclusive outlet of Pepsi and Exclusive outlet of Coca-Cola.
26
Supply in days
On the basis of collected information I analyze that supply of Pepsi from warehouse to retailer shop takes 3 to 5 days. This creates difficulties in the sale of Pepsi. And its competitors take less time than Pepsi i.e. 1 to3 days. So company should create new system of distribution to make it as an advantage.
1 122
3 52
5 24
7 2
27
Supply in days
On the basis of collected information supply of coca-cola from warehouse to retailer has less time than Pepsi i.e. 1 day or may be 3 days. So it becomes a competitive advantage for coke in the consumer market.
Schemes Responses
Prize 38
Discount/crates 45
Other 15
28
23% 19% 8%
50%
Above graph says that 50% retailer feels that free bottles scheme has great place in all promotional activity in promoting sales of Pepsi. After that 23% retailer feels that discount on the per crates has impact.
G. Distribution of Scheme
Yes 137
No 63
29
32%
68%
The scheme which is provided by the company to promote the sell, 68% retailer feels that it is so effective. They are satisfied by the distribution system of scheme of the Pepsi. So that every small or big retailer has equal amount of the profit in these scheme.
Type of opinion
Excellent Good Average
No. of retailers
46 94 45
30
Poor
15
Delivery of goods
Excellent Good Average Poor
8% 23%
23%
46%
On the basis of above graph I can say that delivery of Pepsi from warehouse to retailer is good i.e. 46% retailer feel delivery system is good in Pepsi and 23% feels excellent and average respectively.
I. Are you being provided the POINT OF PURCHASE (POP)/ POINT OF DISPLAY (POD) materials regularly?
Frequency
Always Sometimes
No. of retailers
52 108
Percentage of retailers
26% 54%
31
Never
40
20%
On the basis of collected primary data and after analyzing we can say that pop material i.e. point of purchase / point of display material is sometimes given by the company. About 54% retailer claims this that they are not getting Pop material regularly.
32
CHAPTER 4
CONCLUSION
4. CONCLUSIONS
1. The majority of retailers deal in all the brand of Pepsi & Coke. 2. The study reveals that the market share of Pepsi in Patna is 40% as compared to Coca Cola is 60% thus Pepsi having a Clear edge over Coca Cola. 3. The study reveals the immediate steps are not taken in the replacement of damaged or breakage goods. The rival company Coca-Cola is very quick in this area. Moreover, efficient also.
33
4. Number of route vehicles for delivery of goods is less than the required one for proper coverage of whole area of Patna. Thus just in time and efficient delivery is affected. 5. The demand of Coke exceeds the demand of Pepsi. 6. The Lumbini Beverages Pvt. Ltd. Pays attention in different marketing function also these are : a) Anticipating & recognition of demand b) Stimulation of demand. c) Satisfaction of demand. 7. Company at certain interval conducts market survey to evaluate demand trend. Consumption pattern & nature of growing competition in spite of the fact that soft drinks have already high & almost stable demand. Therefore, company undertakes different promotional schemes to enjoy them. I had confirmed my study to different specified direction. As for Lumbini Beverages Pvt. Ltd., It can be said that it does not have any major draw back in marketing activities still more efficient distribution by dealers & more effective sales executives & sales forces are required. However, the over all grip maintenance is satisfactory & company can retain market share & can upgrade it
Chapter - 5
34
Emphasis should be given to start few more exclusive Pepsi outlets. Delivery position should be maintained to get good returns from the market.
35
The Company must try to make different brands of Pepsi available at every retail outlets whether it is large or small, otherwise the consumers may go for substitute.
As most of the dealers have complaint that the salesperson does not tell them about schemes. For this before launching, any scheme company should advertise it by distributing Pamphlets to the dealers mentioning the Period of the scheme & time-to-time Proper check is required. No. of route vehicles for delivery of goods should be increased in number for proper catering in the entire area of Patna effectively & efficiently.
Sales people and delivery persons should properly monitor the outlets, whether the Point of Purchase/ Point of Display materials are available and are properly utilized or not. The companys Glow Sign boards (GSB) providing policy should be improved and it must be made clear to the retailers that on which basis GSBs are being provided to them.
In addition to the existing Display Materials being provided to the retailers, the company can also provide them some more different display materials irrespective of the categories that the retailers fall into. Point of purchase/ Point of Display materials, merchandising items should be provided to the retailers on more regular basis to increase the sales volume.
36
Maintenance work of the visi-cooler must be improved as it would save the Company and the retailers from a lot of hassles. The Company should take steps to replace damaged or leaked products frequently from the retailers. At every petrol pumps, schools, colleges and parks, the Company should try to put up its outlet and can also install fountain machines. This will help in generating impulse purchase. The company executives should visit the outlets on a regular basis. The Pepsi products are doing well in the market; despite this the retailers want more profit margins. We must try to give them a reasonable profit margin.
37
APPENDICES
QUESTIONNAIRE
Questionnaire
Name of the shop/outlet: .................................................................. Address/Location Type of outlet (a) General Store (c) Sweet Shop (e) Dhaba /Canteen : ....................................................................... : .............................................................. (b) Pan Shop (d) Lassi /Juice Shop (f) Others
38
l .Q. Which brand of soft drinks you deal in? (a) Pepsi (c) Both (b) Coca-cola (d) Other
2. Q. Which brand of cola provides you better facility? (a) Pepsi (b)Coca-cola (c) Both
3. Q. How many crates of Pepsi & Coca-Cola you sell/day? (a) 0-1 crates (c) 2-3 crates (b) 1-2 crates (d) 3 & above
4. Q. Which companys signage you have in your outlet? (a) Pepsi (c) Both (b) Coca-Cola (d) No signage
5. Q. Which companys visi - cooler you have in your outlet? (a) Pepsi (d) Own (b) Coca-Cola (e) Mixed (c) both
6. Q. Which medium affects the sales most? (a) Television (c) Display (b) Magazines/Newspapers (d) Wall paintings/Hoardings
7. Q. Do you think that aggressive advertising further increase the sales volume of Pepsi? 39
(a) Yes
(b) No
8. Q. What promotional activities affect sale mostly. (a) Free bottle scheme (c) Discount Crates
zz
40
Signage Hoarding, Sign board, Painting Visi-coolers Refrigerators specially provided by company
RAPHY RAPHY
Marketing Management, the Millennium Edition : Philip Kotler
41
www.Pepsico.Com
42