A

PROJECT STUDY REPORT

ON

PEPSICO INDIA LIMITED

Training Undertaken at

Varun Beverages Limited

Titled

“PERCEPTION OF CONSUMERS TOWARDS PEPSICO PRODUCTS”

Submitted in partial fulfillment for the award of degree of

Bachelor of Business Administration
(2010-11)

Submitted by- Submitted to-

Kapil Choubisa Dr. Sonal Jain
B.B.A- III Year (H.O.D)

1
 NATIONAL COLLEGE FOR RESEARCH AND
TECHNOLOGY
PREFACE

Bachelor of Business Administration (B.B.A.), one of the most reputed

professional courses includes both theory & practical as a part of two years
curriculum.

In this course each student it repute to under go practical summer training in

an organization of repute. Summer training is an exercise by means of which
student learn many things which cannot be taught in the classroom. During
summer training students understand the real modus operandi of the
concerned areas of interest in the real life situation.

The summer training process is an endeavor to converts all that’s virtual into a
real image i.e. it helps in applying all the theoretical concepts in to the real
corporate world. It helps in developing the managerial skills using which we
can convert into language & convey the taught & ideas from our mind to
others.

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 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. RITESH ARORA,

Designation (Customer Executive, deptt Sales department), for guiding me
right from the inception till the successful completion of the project. I sincerely
acknowledge her for extending their valuable guidance, support for literature,
critical reviews of project and the report and above all the moral support she
had provided to me with all stages of this project.

I would also like to thank the supporting staff Mr. Akhilesh Sharma Territory
Sales Manager, for his help and cooperation throughout our project.

I would also like to thank the supporting my college faculty Dr. Sonal Jain
H.O.D., for her help and cooperation throughout our project.

(Signature)

KAPIL CHOUBISA

3
 EXECUTIVE SUMMARY

In summers with rise in mercury level the demand for cold drink springs up to
quench the thirst of millions of people. PepsiCo trying to catch every customer
with his wide range of products and making these available everywhere. For
this distribution system is main area of focus.

This project deals with PepsiCo marketing analysis of cola penetration. As

Pepsi got a wide range products is increasing day by day. The main objective
of this study lies in understanding the organization and studying and
understanding the consumers’ perception and opinion about the latest product
and this scheme is making Pepsi range available everywhere. It is important
to select right retailer and build good relation with them to ensure availability of
products in retail shops, which is a very important aspect of this business.
Retailers and PSR are very important part of this system. For this reason the
project was assigned to me, titled as “PERCEPTION OF CONSUMERS
TOWARDS PEPSICO PRODUCTS”. For that I prepared EDS for collecting
relevant information.

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 TABLE OF CONTENTS
S. No. Particulars Pages

1. Introduction to FMCG Industry 1

2. Introduction to the Beverage industry 4

3. Introduction to the organization 6

4. Introduction of Jaipuria Group 28

5. Research methodology 42

5.1 Title of the project 42

5.2 Duration of the project 42

5.3 Objective of study 42

5.4 Type of research 43

5.5 Sample size and method of selection sample 44

5.6 Limitation of study 45

6. Facts and findings 47

7. Analysis and interpretation 52

8. SWOT 60

9. Conclusion 64

10. Recommendation and suggestions 65

11. Appendix 66

12. Bibliography 70

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 1. INTRODUCTION TO FMCG INDUSTRY

A Brief Insight- The FMCG Industry in India

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

Goods (CPG) are products that have a quick turnover and relatively low cost.
Consumers generally put less thought into the purchase of FMCG than they
do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s.
Many players had been facing severe problems on account of increased
competition from small and regional players and from slow growth across its
various product categories. As a result, most of the companies were forced to
revamp their product, marketing, distribution and customer service strategies
to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had
changed significantly. With the liberalization and growth of the Indian
economy, the Indian customer witnessed an increasing exposure to new
domestic and foreign products through different media, such as television and
the Internet. Apart from this, social changes such as increase in the number of
nuclear families and the growing number of working couples resulting in
increased spending power also contributed to the increase in the Indian
consumers' personal consumption. The realization of the customer's growing
awareness and the need to meet changing requirements and preferences on
account of changing lifestyles required the FMCG producing companies to
formulate customer-centric strategies. These changes had a positive impact,
leading to the rapid growth in the FMCG industry. Increased availability of

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retail space, rapid urbanization, and qualified manpower also boosted the
growth of the organized retailing sector.

HUL led the way in revolutionizing the product, market, distribution and service
formats of the FMCG industry by focusing on rural markets, direct distribution,
creating new product, distribution and service formats. The FMCG sector also
received a boost by government led initiatives in the 2003 budget such as the
setting up of excise free zones in various parts of the country that witnessed
firms moving away from outsourcing to manufacturing by investing in the
zones.

Though the absolute profit made on FMCG products is relatively small, they
generally sell in large numbers and so the cumulative profit on such products
can be large. Unlike some industries, such as automobiles, computers, and
airlines, FMCG does not suffer from mass layoffs every time the economy
starts to dip. A person may put off buying a car but he will not put off having
his dinner.

Unlike other economy sectors, FMCG share float in a steady manner

irrespective of global market dip, because they generally satisfy rather
fundamental, as opposed to luxurious needs. The FMCG sector, which is
growing at the rate of 9% is the fourth largest sector in the Indian Economy
and is worth Rs.93000 cores. The main contributor, making up 32% of the
sector, is the South Indian region. It is predicted that in the year 2010, the
FMCG sector will be worth Rs.143000 crores. The sector being one of the
biggest sectors of the Indian Economy provides up to 4 million jobs.
The FMCG sector consists of the following categories:

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• Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and
Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers,
Sanitary products) and Shoe care; the major players being; Hindustan
Unilever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter &
Gamble.
• Household Care- Fabric wash (Laundry soaps and synthetic
detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air
fresheners, Insecticides and Mosquito repellants, Metal polish and
Furniture polish; the major players being; Hindustan Unilever Limited,
Nirma and Ricket Colman.

• Branded and Packaged foods and beverages- Health beverages, Soft

drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes),
Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits,
Processed vegetables, Processed meat, Branded flour, Bottled water,
Branded rice, Branded sugar, Juices; the major players being; Hindustan
Unilever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur

• Spirits and Tobacco; the major players being; ITC, Godfrey Philips and
UB

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 2. INTRODUCTION TO THE BEVERAGE INDUSTRY

BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

In India, beverages form an important part of the lives of people. It is an
industry, in which the players constantly innovate, in order to come up with
better products to gain more consumers and satisfy the existing consumers.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as
to cater the right product to the right person. The different ways of segmenting
it are as follows:

• Alcoholic, non-alcoholic and sports beverages

• Natural and Synthetic beverages

• In-home consumption and out of home on premises consumption.

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 • Age wise segmentation i.e. beverages for kids, for adults and for senior
citizens
• Segmentation based on the amount of consumption i.e. high levels of
consumption and low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be

observed that consumers perceive beverages in two different ways i.e.
beverages are a luxury and that beverages have to be consumed
occasionally. These two perceptions are the biggest challenges faced by the
beverage industry. In order to leverage the beverage industry, it is important to
address this issue so as to encourage regular consumption as well as and to
make the industry more affordable.

Four strong strategic elements to increase consumption of the products of the

beverage industry in India are:

• The quality and the consistency of beverages needs to be enhanced so

that consumers are satisfied and they enjoy consuming beverages.
• The credibility and trust needs to be built so that there is a very strong
and safe feeling that the consumers have while consuming the
beverages.
• Consumer education is a must to bring out benefits of beverage
consumption whether in terms of health, taste, relaxation, stimulation,
refreshment, well-being or prestige relevant to the category.
• Communication should be relevant and trendy so that consumers are
able to find an appeal to go out, purchase and consume.

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The beverage market has still to achieve greater penetration and also a wider
spread of distribution. It is important to look at the entire beverage market, as
a big opportunity, for brand and sales growth in turn to add up to the overall
growth of the food and beverage industry in the economy.

11
 3. INTRODUCTION TO THE ORGANIZATION

Pepsi Company is a large conglomerate with interests in manufacturing,

marketing and selling a wide variety of carbonated and non-carbonated
beverages, as well as salty, sweet and grain-based snacks, and other foods.
PepsiCo is a world leader in convenient snacks, foods and beverages, with
revenues of more than $39 billion and over 185,000 employees.

A Brief Pepsi History

Born in the Carolinas in 1898, Pepsi-Cola

has a long and rich history. The drink is the
invention of Caleb Bradham (left), a
pharmacist and drugstore owner in New
Bern, North Carolina.

The information published here is provided by

PepsiCo, Inc. and may be accessed at their site:
www.pepsi.com.

The summer of 1898, as usual, was hot and humid in New Bern, North
Carolina. So a young pharmacist named Caleb Bradham began experimenting
with combinations of spices, juices, and syrups trying to create a refreshing
new drink to serve his customers. He succeeded beyond all expectations
because he invented the beverage known around the world as Pepsi-Cola.

12
Caleb Bradham knew that to keep people returning to his pharmacy, he would
have to turn it into a gathering place. He did so by concocting his own special
beverage, a soft drink. His creation, a unique mixture of kola nut extract,
vanilla and rareoils, became so popular his customers named it "Brad's Drink."
Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink.
People responded, andsales of Pepsi-Cola started to grow, convincing him
that he should form a company to market the new beverage.

In 1902, he launched the Pepsi-Cola Company in the back room of his

pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he
mixed the syrup himself and sold it exclusively through soda fountains. But
soon Caleb recognized that a greater opportunity existed to bottle Pepsi so
that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was
officially registered with the U.S. Patent Office. That year, Caleb sold 7,968
gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids
Digestion." He also began awarding franchises to bottle Pepsi to independent
investors, whose number grew from just two in 1905, in the cities of Charlotte
and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the
end of 1910, there were Pepsi-Cola franchises in 24 states.

Pepsi-Cola's first bottling line resulted from some less-than-sophisticated

engineering in the back room of Caleb's pharmacy. Building a strong franchise
system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers,
entrepreneurial in spirit and dedicated to the product's success, provided a
sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By
1907, the new company was selling more than 100,000 gallons of syrup per
year.

13
Growth was phenomenal, and in 1909 Caleb erected a headquarters so
spectacular that the town of New Bern pictured it on a postcard. Famous
racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully
drink...refreshing, invigorating, a fine bracer before a race."

The previous year, Pepsi had been one of the first companies in the United
States to switch from horse-drawn transport to motor vehicles, and Caleb's
business expertise captured widespread attention. He was even mentioned as
a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot
praised him for his "keen and energetic business sense."

Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi

sales with the slogan, "Drink Pepsi-Cola. It will satisfy you." Then cameWorld
War I, and the cost of doing business increased drastically. Sugar prices see
sawed between record highs and disastrous lows, and so did the price of
producing Pepsi-Cola. Caleb was forced into a series of business gambles just
to survive, until finally, after three exhausting years, his luck ran out and he
was bankrupted. By 1921, only two plants remained open. It wasn't until a
successful candy manufacturer, Charles G. Guth, appeared on the scene that
the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated,
a large chain of candy stores and soda fountains along the eastern seaboard.
He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory
business relationship with the Coca-Cola Company, and at the same time to
add an attractive drawing card to Loft's soda fountains. He was right. After five
owners and 15 unprofitable years, Pepsi-Cola was once again a thriving
national brand.

One oddity of the time, for a number of years, all of Pepsi-Cola's sales were
actually administered from a Baltimore building apparently owned by Coca-
Cola, and named for its president. Within two years, Pepsi would earn $1
million for its new owner. With the resurgence came new confidence, a rarity in
14
those days because the nation was in the early stages of a severe economic
decline that came to be known as the Great Depression.

1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames

"Brad's Drink," a carbonated soft drink he created to serve his drugstore's
fountain customers. The new name, Pepsi-Cola, is derived from two of the
principal ingredients, pepsin and kola nuts. It is first used on August 28.

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: “PepsiCo’s 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
144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world-
acclaimed sculpture collection in a garden setting.
15
Company leadership

PepsiCo's History Timeline

PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive

Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive
Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was
created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist.
Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded
by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman
W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the
new company; Donald M. Kendall is president and chief executive officer. The
new company reports sales of $510 million and has 19,000 employees.

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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. Tropicana
was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,
including Gatorade, in 2001 Headquartered in Purchase, New York, with
Research and Development Headquarters in Valhalla, NY, The Pepsi Cola
Company began in 1898, but it only became known as PepsiCo when it
merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and
Taco Bell, but these fast-food restaurants were spun off into Tricon Global
Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998
and Quaker Oats in 2001.PepsiCo’s 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.”

THE COMPANY CONSISTS OF

PepsiCo Americas Foods (PAF)

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.

Frito-Lay and Pepsi Join

In February 1965, the Board of Directors for Frito-lay, Inc. and Pepsi-Cola
announced a plan for the merger of the two companies. On June 8, 1965, the
17
merger of Frito-Lay and Pepsi-Cola Company was approved by shareholders
of both companies, and a new company called PepsiCo, Inc. was formed. At
the time of the merger, Frito-Lay owned 46 manufacturing plants nationwide,
had more than 150 distribution centers across the United States, and was
listed on the New York Stock Exchange.

Frito-Lay North America and Frito-Lay International

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 his own
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.

Today, Frito-Lay brands account more than half of the U.S. snack chip
industry.

PepsiCo began its international snack food operations in 1966. Today, with
operations in more than 40 countries, it is the leading multinational snack chip
company, accounting for more than one quarter of international retail snack
chip sales. Products are available in some 120 countries. Frito-Lay North
America includes Canada and the United States. Major Frito-Lay International
markets include Australia, Brazil, Mexico, the Netherlands, South Africa, the
United Kingdom and Spain.

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Often Frito-Lay products are known by local names. These names include
Matutano in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil,
Walkers in the United Kingdom and others. The company markets Frito-Lay
brands on a global level, and introduces unique products for local tastes.

Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack
chips. Other major brands include Cheetos cheese flavored snacks, Tostitos
tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips
multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies,
nuts and crackers.

Pepsi-Cola North America and PepsiCo Beverages International

Caleb Bradham, a New Bern, North Carolina druggist, who first formulated
Pepsi-Cola, founded PepsiCo’s beverage business at the turn of the century.
Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand
Pepsi and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One,
Mountain Dew, Slice, Sierra Mist and Mug brands – account for nearly one-
third of total soft drink sales in the United States, a consumer market totaling
about $60 billion.

Pepsi-Cola also offers a variety of non-carbonated beverages, including

Aquafina bottled water, Fruitworks and All Sport.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today

Lipton is the biggest selling ready-to-drink tea brand in the United States.
Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a
partnership with Starbucks.

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In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets
an innovative line of beverages including fruit blends, energy drinks, dairy-
based drinks, exotic teas and other beverages with herbal ingredients.

Outside the United States, Pepsi-Cola soft drink operations include the
business of Seven-Up International. Pepsi-Cola beverages are available in
about 160 countries and territories.

Pepsi-Cola began selling its products internationally in 1934 with its operations
in Canada. Operations grew rapidly beginning in the 1950s. In addition to
brands marketed in the United States, major products include Mirinda and
Pepsi Max. Pepsi-Cola North America includes the United States and Canada.
Key international markets include Argentina, Brazil, China, India, Mexico,
Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo
Beverages International also produces, sells and distributes Gatorade sports
drinks as well as Tropicana and other juices internationally.

Pepsi-Cola provides advertising, marketing, sales and promotional support to

Pepsi-Cola bottlers and food service customers. This includes some of the
world's best-loved and most-recognized advertising. New advertising and
exciting promotions keep Pepsi-Cola brands young.

The company manufactures and sells soft drink concentrate to Pepsi-Cola

bottlers. The company also provides fountain beverage products.

VISION OF PEPSICO

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PepsiCo Mission

"To be the world's premier consumer Products Company focused on

convenience 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 Thecommunities in which we
operate. And in everything we do, we strive for honesty, fairness and integrity."

PEPSICO IN INDIA

PepsiCo is a world leader in convenience foods and beverages, with 2007

revenues of more than $39 billion and more than 185,000 employees across
the world. Its world renowned brands are available in nearly 200 countries and
territories. PepsiCo gained entry to India in 1989 by creating a joint venture
with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC)
and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi
until 1991, when the use of foreign brands was allowed; PepsiCo bought out
its partners and ended the joint venture in 1994. Firstly Pepsi was banned
from import in India, in 1970, for having refused to release the list of its

21
ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market
shortly afterwards.

PepsiCo has grown to become the country’s largest selling 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 India and its partners have invested more than U.S. $700 million
since the company was established in the country in 1989. In India, PepsiCo
provides direct employment to 4,000 people and indirect employment to
60,000 people including suppliers and distributors.

The group has built an expansive beverage, snack food and exports business
and to support the operations are the group’s 43 bottling plants in India, of
which 15 are company owned and 28 are franchisee owned. In addition to this,
PepsiCo’s Frito Lay snack division has 3 state of the art plants. PepsiCo’s
business is based on its sustainability vision of making tomorrow better than
today. Our commitment to living by this vision every day is visible in our
contribution to our country, consumers, farmers and our people.

PepsiCo India’s expansive portfolio

Refreshment beverages

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 Sports drinks

100% natural fruit juices and juice based drinks

Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options–
Diet Pepsi and 7Up Light; hydrating and nutritional beverages such as
Aquafina drinking water, isotonic sports drinks - Gatorade, and 100% natural
fruit juices and juice based drinks – Tropicana, Tropicana Twister and Slice.
Our local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola
complete our diverse spectrum of brand

PepsiCo’s snack food company

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PepsiCo’s snack food company, Frito-Lay, is the leader in the branded potato
chip market and was amongst the first companies to eliminate the use of trans
fats and MSG in its products. It manufactures Lay’s Potato Chips; Cheetos
extruded snacks, Uncle Chipps and traditional namkeen snacks under the
Kurkure and Lehar brands. The company’s high fiber breakfast cereal, Quaker
Oats, along with Lehar Lites, low fat and roasted snack options enhance the
choices available to the growing health and wellness needs of our consumers.
Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are
cooked in Rice Bran Oil to significantly reduce saturated fats and all of its
products contain voluntary nutritional labeling on their packets.

PepsiCo SKU’s

PEPSICO BRAND PROFILE

24
Pepsi cola

Mirinda orange / Lemon Aquafina Water

Diet Can Slice

Nimbooze 7UP

Tropicana Juiuce Mountain Dew

25
300ml, 600ml,1lir.,2lir

300ml ,600ml, 1Lit. ,2Lit

26
 1Lit. 2 lit

250ml , 330 ml

Lead pack of all brands of Pepsi are given as below—

Mrp
Products Packing Retailer price
27
 10,20,30,55
Pepsi cola 300ml,600ml,1lit.2lit. 8.95,18.5,27.5,51
10,20,30,55
Mirinda 300ml,600ml,1lit.2lit. 8.95,18.5,27.5,51
10,20,30,55
7UP 300ml,600ml,1lit.2lit. 8.95,18.5,27.5,51
10,20,30,55
Dew 300ml,600ml,1lit.2lit. 8.95,18.5,27.5,51
10,22,48
Slice 300ml,500ml,1.25Lit 8.95,20.75,45.5
10,20
Lehar soda 500ml,1.5lit 8.95,16.91
13
Aquafina water 1Lit 9.58
15,25
Diet can 250ml, 330ml 13.75, 23.75
10, 15
Nimbooze 200ml 350ml 8.95,13.80

Tropicana Juice 200ml, 1Lit 13,70.33

Rangs of Different Pack Available pepsi

GLASS – 300 ml.

PET - 600 ml, 1.25 ml and 2.25 liter.

CANS - 250ml , 330 ml

Tetra Pack - 200ml, 350 ml

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Milestone

1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-
Cola name.

1903 In keeping with its origin as a pharmacist's concoction, Bradham's

advertising praises his drink as "Exhilarating, invigorating, aids
digestion."

1905 A new logo appears, the first change from the original created in 1898.

1906 The logo is redesigned and a new slogan added: "The original pure food
drink." The trademark is registered in Canada.

1907 The Pepsi trademark is registered in Mexico.

1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first

celebrity endorser when he appears in newspaper ads describing Pepsi-
Cola as "A bully drink...refreshing, invigorating, a fine bracer before a
race." The theme "Delicious and Healthful" appears, and will be used
intermittently over the next two decades.

1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."

1932 The trademark is registered in Argentina.

1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price
charged by its competitors for six ounces.

1938 The trademark is registered in the Soviet Union.

1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice
as Much for a Nickel" to increase consumer awareness of Pepsi's value
advantage.
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1940 Pepsi makes advertising history with the first advertising jingle ever
broadcast nationwide. "Nickel, Nickel" will eventually become a hit
record and will be translated into 55 languages. A new, more modern
logo is adopted.

1941 In support of America's war effort, Pepsi changes the color of its bottle
crowns to red, white and blue. A Pepsi canteen in Times Square, New
York, operates throughout the war, enabling more than a million families
to record messages for armed services personnel overseas.

1943 The "Twice as Much" advertising strategy expands to include the theme,
"Bigger Drink, Better Taste."

1949 "Why take less when Pepsi's best?" is added to "Twice as Much"
advertising.

1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing
soft drink economics force Pepsi to raise prices to competitive levels.
The logo is again updated.

1953 Americans become more weight conscious, and a new strategy based
on Pepsi's lower caloric content is implemented with "The Light
Refreshment" campaign.

1954 "The Light Refreshment" evolves to incorporate "Refreshing Without

Filling."

1958 Pepsi struggles to enhance its brand image. Sometimes referred to as

"the kitchen cola," as a consequence of its long-time positioning as a
bargain brand, Pepsi now identifies itself with young, fashionable
consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive
"swirl" bottle replaces Pepsi's earlier straight-sided bottle.

30
1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard
Nixon meet in the soon-to-be-famous "kitchen debate" at an international
trade fair. The meeting, over Pepsi, is photo-captioned in the U.S. as
"Khrushchev Gets Sociable."

1961 Pepsi further refines its target audience, recognizing the increasing
importance of the younger, post-war generation. "Now it's Pepsi, for
Those who think Young" defines youth as a state of mind as much as a
chronological age, maintaining the brand's appeal to all market
segments.

1963 In one of the most significant demographic events in commercial history,

the post-war baby boom emerges as a social and marketplace
phenomenon. Pepsi recognizes the change, and positions Pepsi as the
brand belonging to the new generation-The Pepsi Generation. "Come
alive! You're in the Pepsi Generation" makes advertising history. It is the
first time a product is identified, not so much by its attributes, as by its
consumers' lifestyles and attitudes.

1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1966 Diet Pepsi's first independent campaign, "Girlwatchers," focuses on the

cosmetic benefits of the low-calorie cola. The "Girlwatchers" musical
theme becomes a Top 40 hit. Advertising for another new product,
Mountain Dew, a regional brand acquired in 1964, airs for the first time,
built around the instantly recognizable tag line, "Ya-Hoo, Mountain Dew!"

1967 When research indicates that consumers place a premium on Pepsi's

superior taste when chilled, "Taste that beats the others cold. Pepsi
pours it on" emphasizes Pepsi's product superiority. The campaign,
while product-oriented, adheres closely to the energetic, youthful,
lifestyle imagery established in the initial Pepsi Generation campaign.
31
1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi
Generation advertising strategy. Youth and lifestyle are still the
campaign's driving forces, but with "Live/Give," a new awareness and a
reflection of contemporary events and mood become integral parts of the
advertising's texture.

1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi

People, Feelin' Free" captures the mood of a nation involved in massive
social and political change. It pictures us the way we are-one people, but
many personalities.

1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions

of consumers that Pepsi's taste is superior.

1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an

improving national mood. "Puppies," a 30-second snapshot of an
encounter between a very small boy and some even smaller dogs,
becomes an instant commercial classic.

1979 With the end of the '70s comes the end of a national malaise. Patriotism
has been restored by an exuberant celebration of the U.S. bicentennial,
and Americans are looking to the future with renewed optimism. "Catch
that Pepsi Spirit!" catches the mood and the Pepsi Generation carries it
forward into the '80s.

1982 With all the evidence showing that Pepsi's taste is superior, the only
question remaining is how to add that message to Pepsi Generation
advertising. The answer? "Pepsi's got your Taste for Life!," a triumphant
celebration of great times and great taste.

32
1983 The soft drink market grows more competitive, but for Pepsi drinkers, the
battle is won. The time is right and so is their soft drink. It's got to be
"Pepsi Now!"

1984 A new generation has emerged-in the United States, around the world
and in Pepsi advertising, too. "Pepsi. The Choice of a New Generation"
announces the change, and the most popular entertainer of the time,
Michael Jackson, stars in the first two commercials of the new campaign.
The two spots quickly become "the most eagerly awaited advertising of
all time."

1985 Lionel Richie leads a star-studded parade into "New Generation"

advertising followed by pop music icons Tina Turner and Gloria Estefan.
Sports heroes Joe Montana and Dan Marino are part of it, as are film
and television stars Teri Garr and Billy Crystal. Geraldine Ferraro, the
first woman nominated to be vice president of the U.S., stars in a Diet
Pepsi spot. And the irrepressible Michael J. Fox brings a special talent,
style and spirit to a series of Pepsi and Diet Pepsi commercials,
including a classic, "Apartment 10G."

1987 After an absence of 27 years, Pepsi returns to Times Square, New York,
with a spectacular 850-square foot electronic display billboard declaring
Pepsi to be "America's Choice."

1988 Michael Jackson returns to "New Generation" advertising to star in a

four-part "episodic" commercial named "Chase." "Chase" airs during the
Grammy Awards program and is immediately hailed by the media as
"the most-watched commercial in advertising history."

1989 "The Choice of a New Generation" theme expands to categorize Pepsi

users as "A Generation Ahead!"

33
1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation"
campaign, and football legend Joe Montana returns in a spot challenging
other celebrities to taste test their colas against Pepsi. Music legend Ray
Charles stars in a new Diet Pepsi campaign, "You got the right one
baby."

1991 "You got the Right one Baby" is modified to "You got the Right one
Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers
and a campaign soon to become the most popular advertising in
America is on its way. Supermodel Cindy Crawford stars in an award-
winning commercial made to introduce Pepsi's updated logo and
package graphics.

1992 Celebrities join consumers, declaring that they "Gotta Have It." The
interim campaign supplants "Choice of a New Generation" as work
proceeds on new Pepsi advertising for the '90s. Mountain Dew growth
continues, supported by the antics of an outrageous new Dew Crew
whose claim to fame is that, except for the unique great taste of Dew,
they've "Been there, Done that, Tried that."

1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball
superstar Shaquille O'Neal is rated as best in U.S.

1994 New advertising introducing Diet Pepsi's freshness dating initiative

features Pepsi CEO Craig Weatherup explaining the relationship
between freshness and superior taste to consumers.

1995 In a new campaign, the company declares "Nothing else is a Pepsi" and
takes top honors in the year's national advertising championship.

34
 4. INTRODUCTION OF JAIPURIA GROUP

Jaipuria Group is a Rs. 4,000 Cr. multi- faceted organization with diverse
business interests. The JAIPURIA GROUP is one of the top business
houses in India, headquartered in New Delhi, India. It is quickly establishing
itself as a pan Asian group with its operations already starting in Sri Lanka,
Singapore and Indonesia. It has business interests in manufacturing,
processing & distribution of Aerated Water, Beer, Ice Creams, Bread and
Pizzas. It is also present in diverse fields of IT, Printing, Real Estate, Industrial
Water Meters, Education, Power and Coal mining.

VARIOUS field in which Jaipuria group

35
 BREWERIES

ICE CREAM

36
Engineering

COAL MINING

Hydropower

37
PRINTING

PIZZA HUT

It has exclusive franchise rights for Northern & Eastern India. Out of 56
operational Pizza Hut restaurants in the country 27 restaurants are owned and
run by its company. These restaurants are located at Defense Colony,
Aleksandra, Vikas Puri, Green Park, Karol Bagh, New Friends Colony,
Connaught Place, Basant Lok, Greater Kailash, Jaipur (2), Agra, Noida (2),
Faridabad (2), Chandigarh (2), Ludhiana, Jallandhar, Amritsar, Gurgaon (3),
Kushambi(Ghaziabad) and Kolkata (2).

All these restaurants are making good profits & are dominating the market.
The name of business entity is Devyani International Private Limited.

38
The Jaipuria Group is Raymond's sole selling agent for Northern India and
owns Seven of Raymond's exclusive retail outlets in Delhi. Empowered by
powerful strategies, the group has been retaining its partnership with
Raymond since 1940. Envisaging the growth in the retailing sector, the group
has also ventured into garment and textile retail. It has set up seven
showrooms at Seven major locations viz. Connaught Place, Greater Kailash,
Green Park, Lajpat Nagar, Roop Nagar, Kamla Nagar & Karol Bagh. Jaipuria
Group is all set to become one of the major garment retailers in India.
Beverages
Jaipuria Group has the distinct honor of being the biggest bottler in India of the
global giant Pepsi Co. It controls near about 60% of Pepsi’s bottling business
in India. The Group has been managing a network of scores of distributors and
simultaneously proving employment to thousands of people. With state–of–
the-art technology and plants equipped with the latest machinery, the Jaipuria
Group has occupied a remarkable position in the soft drink industry of India.
The company has created a stronghold across the country.

Pepsi Co Distribution System

There are two type of bottling plant.
• Company Operated Bottling Operation (COBO)

These are owned and operated by PepsiCo. The Pepsi Bottling Group
is the world's largest bottler of Pepsi-Cola beverages. PBG has the
exclusive right to manufacture, sell and distribute Pepsi-Cola beverages.

• Franchisee Operated Bottling Operation (FOBO)

Franchising refers to the method of practicing and using another

person's philosophy of business. The "franchisor" that is PepsiCo
authorizes the proven methods and trademarks of his business to the

39
 "franchisee" that is RKJ Group in India for a fee and a percentage of
gross monthly sales. Various tangibles and intangibles such as national
or international advertising, training, and other support services are
commonly made available by the franchisor

I am sure that these are the pictures of Pepsi Manufacturing plant in India.
However, these are the people who are using Pepsi name and making money.
I am posting these pictures to make Indians aware of what they are drinking. .

1. Great boy picking the colors to prepare the PEPSI

2. Men at work - washing the bottles

3. Boys placing the bottles in the tray

40
4. Boy filling the PEPSI Soooooo… called

5. Boy filling the Gas in the bottles

6. Great man at capping the bottle

41
Pepsi Cola contains:
H2o,Sugar,Syrup,Co2 adding Amount per 100ml
Energy ……………….196.5kj
Fat………………….….0g
Sodium………………..0.98mg
Carbohydrates…………11.74g
Sugar…………………..11.04g
Protein………………….0g
Caffeine…………………10mg

Ingredient Delivery:- Sweetener

Team of professionals, work on selecting, auditing, sampling, testing,

approving and then authorizing the sugar suppliers and the list of such
authorized suppliers with approved sugar lots and along with the certificate of
analysis are sent across to all the bottling unit for procurement.

Secret Formula
Created in special concentrate plants, it's delivered, held and used under strict
controls to maintain its integrity and security. Each unit of concentrate is
especially identifiable to allow the "history" of each component to be
researched at any stage of production, storage or use.
42
CO2 Formula
when delivered to the plant, carbon dioxide, or CO2, comes in cylinders for
easy delivery and storage. But what is it? In essence, it's a colorless and
odorless gas that provides the "fizz" for our beverages. But it's also a by-
product of our breathing and used by plants and trees to produce oxygen.

Water
since water is a key component to all our beverages, its quality is critical. And,
since public water quality varies around the world, each plant further treats the
water it uses. This means that before water is added to any of our beverages;
it's rigorously filtered and cleansed. We then continuously sample the water to
ensure I t meet our standards.

Materials
Ingredients are not the only things delivered to the plant. Other materials such
as bottles, cans, labels and packaging are also delivered. Our plants in India
use refillable bottles, CANS, PET etc. in the Production Process, when bottles
and cans are delivered to the plant; they are carefully inspected to ensure that
they meet our exacting standards. Once these have passed initial inspection,
they move on to be washed and/or rinsed.

Washing and Rinsing:-

To ensure quality, each bottle is washed, sanitized and rinsed before being
filled. While this sounds simple, the actual steps can differ by bottling plant. In
India, our plants use refillable glass, cans or PET bottles. To ensure they meet
our cleanliness standard, bottles are first hit with prerinse jets which remove
any dirt or debris. They are then soaked in a high-temperature deep cleaning
solution that removes any remaining dirt and sanitizes them. The bottles then
43
move to the "hydrowash" where they are washed again with a deep cleaning
pressure-spray.

Mixing and Blending:-

H2O and Sugar

Mixing and blending begin with the steps of mixing pure water with refined
sugar, which creates simple syrup. The syrup is then measured for the correct
amount of sugar.

Secret Formula
Our secret formula is... still secret! That's right; the secret formula remains a
mystery to the millions of people in nearly 200 countries that enjoys our
refreshing beverages everyday. Even though we can't tell you the secret, you
can be sure that "LIFE TASTES GOOD" with PEPSI-COLA.

H20 and Syrup

With the syrup nearing its final state, we mix it with pure water, creating the
finished uncarbonated beverage. However, the water and syrup must be
mixed in right ratio. This is done by the beverage proportioning equipment. It
accurately measures the correct ratio for each and sends this mixture to the
carbonator.

CO2 Adding
Adding CO2 or carbon dioxide gas is the final touch tha carbonates the

44
beverages. Carbon dioxide not only gives our beverages their effervescent
zest, but it also adds to the distinctive and familiar taste everyone has come to
expect from our beverages.

Filling:-
Once all the ingredients have been mixed and blended and the bottles have
been cleaned and sanitize`d, we're ready to start filling. This is a surprisingly
complex process requiring precision at each step. To begin with, bottles must
be carefully timed as they move to the filler - synchronization is key. Once at
the filler, bottles are either held securely in place by flexible grippers or
precisely placed under filling valves by centering devices. Before the bottles
can be filled, the inside of the bottles must be pressurized. This allows for the
force of gravity itself to draw the beverage into the bottle - a process that
ensures the smooth flow of liquid, with little to no foaming.from our beverages.

Capping:-
Once filled, bottles are then capped. We use different caps for different bottles
- glass bottles are usually topped with a metal crown while "PET BOTTLES"
are topped with a plastic screw-top. Each cap type then moves through
different parts of the machine, which ensures each cap stays scratch free and
is in the right position to be precisely placed on the bottle. As quality and
freshness are key, we use a "no closure" detector during the capping process
and a "go-no-go gauge" or "torque meter" after the bottles has been capped.
The "no-closure" detector checks if a screw top or crowns has been placed on
bottle. The process actually stops if the detector doesn't find a closure. The
"go-no-go gauge" checks for the proper crown crimp and the "torque meter"
checks to make sure the screw-top is good and tight. If the bottle cap isn't just
right, the beverages can become flat or be affected in other ways. If this
happens, the bottle is discarded.

45
Labelling:-
Once the bottles have been filled and capped, they move on to be labeled. A
special machine dispenses labels from large rollers, cuts them and place on
the bottles. For special labels such as commemorative bottles for football
championships, the labels are sent to the bottling plants for approval, and then
used for packaging. Depending on the occasion, some of these special bottles
will go only to the specific locations. For example, a national football
championship bottle will be sent only to the home town or state of the
championship team.

Packaging:-
Once our filled beverages have passed final inspection, they are ready to be
packaged for delivery. Generally, packing can refer to everything from the
unique "BOTTLE" and "CAN" designs, to label designs, to cardboard boxes
and container top lasticrings.
Because the needs and tastes of our consumers are so diverse, the packaging
varies depending on where the beverages are being sent.

Warehousing and Delivery System:-

In order to make sure the freshest beverages possible get to you, each
warehouse must efficiently manage the thousands of beverages cases
produced each day.
Beverage organization is key, though it's the bottle and can coding that allow
for the necessary precision. From the warehouse, we load beverages onto our
distinctive trucks. Night and day, our trucks are delivering our refreshing
beverages to stores, soda fountains, and vending machines near you.

Basic Concepts of the Distributor System.

46
Distribution of goods and services plays an important role in the sales system.
Distribution system varies from company to company and region to region.

Pepsi Distributions channel

Manufacturer plant Dipo Distributor Retailer Consumer

Global Carbonated Soft Drink Market Segmentation

Geography % Share by value 2008

USA 47.40%
Europe 26.40%
Rest of the world 15.40%
Asia pacific 10.40%

%Share by value 2008

50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Rest of Asia
USA Europe
the world Pacific
%Share by value 2008 47.40% 26.40% 15.40% 10.40%

Global Carbonated Soft Drink Market Volume

(Liters Billion 2004-2008)

Year Liters Billion % Growth
47
2004 141.1 2.50
2005 146.2 3.70
2006 151.9 3.90
2007 158.4 4.30
2008 165.2 4.30

market volume
liters Billion

Year
2004
2005
2006
2007
2008

0 200 400 600 800

%Growth

Carbonated Soft Drink Market Volume $ billion

Year $ Billion % Growth

2004 124.5 3.20%
2005 129.44 3.90%
2006 133.7 3.40%
2007 139.3 4.10%
2008 144.4 3.70

48
 year

3.20%
3.90%
3.40%
Year

0
$Billion
2004
2005
2006
2007

129.44
124.5

133.7
0

2008

0 200 400 600 800

%Growth

5.RESEARCH METHODOLOGY

A consumer sampling involving 5.5 lakh people was conducted in a span of 30

days across major cities in order to give the product the required marketing
push and to recognize the prospective consumers and their opinion in order to
develop and market the product in a better way in the near future. The
methodology used in studying and understanding the perceived views of
consumers towards the product was ‘SAMPLING’.

5.1 Title of the Research

Main title of Project assigned to the, ‘ Consumer Behavior towards the Pepsico
Products”.

5.2 Duration of the project

I have done training during the time period 18 May 2009 to 26th June 2009.
During the training period I worked on study of behavior of the
consumer. To know their perception against Pepsico Products. I

49
 took personal meeting with consumer and receive their
responses.

5.3 Objective of research

The objectives of the Executive Training at Pepsico India Ltd. :

1) To identify the working of the organization.

2) To conduct an exhaustive analysis of the marketing department.

3) To increase the sales of the products that are prepared and marketed by
the organization.

4) To conduct an extensive study of the market place and the customer’s

needs.

5) To understand the core business of the company, organization chart,

key personnel in the company, manufacturing units, marketing channels,
financial policies, etc.

6) To do a comprehensive analysis of the company and prepare the SWOT

(Strengths, Weaknesses, Opportunities and Threats) analysis report for
the company.

7) To build a good rapport with the company’s staff.

8) To understand the organizational structure and the top management

team including the Chairman, Managing Director and the Officers.

9) To do a practical and live observation of the work place.

10) To understand the attitudes and behavior of the customers

5.4 Type of Research

50
The students appointed as summer trainees by the organization were
assigned to carry out the process of sampling. Each trainee was allotted
different outlets on different days and a specific number of cases containing 24
bottles of 400 ml each were given to them for the purpose. A standardized
procedure was to be followed by the trainees to carry out the work, in order to
achieve uniformity in the process, i.e. as follows:

• Talk to the store Manager in the respective store and attain chiller space
in order to chill the bottles as it was necessitated that the drinks be
served chill to the consumers and chill the bottles for about two hours.

• When the consumer entered or exited the store, the trainee had to stop
the consumer and tell the consumers few facts about the product i.e.
that it was the latest product introduced by Coca-Cola, that it was an
orange drink with real orange pulp in it and that it was to be had chilled
and shaken well before use.
• Then the bottles were to be shaken well, opened and given to the
consumer to taste and once they sipped the drink, the consumer would
be requested to give an oral opinion about the product.

• After this, in order to make a report, the approximate age of the

consumer, gender and their opinion was to be made note of.

5.5 Sample size and method of selection sample

Sampling, by definition, is that part of statistical practice concerned with the

selection of individual observations intended to yield some knowledge about a
population of concern, especially for the purposes of statistical inference. Each
observation measures one or more properties of an observable entity

51
enumerated to distinguish objects or individuals. In the case of Pepsico
Products, the properties taken into concern are, the opinion of people
regarding the products, taking into consideration their age and gender.

Sample Size

This refers to the number of items to be selected from the universe to

constitute a sample. It should be optimum i.e. one which fulfills the
requirement of efficiency representative ness reliability and flexibility.

There are two type of sampling – i) Random Sampling and ii) Systematic
sampling.

i) Random sampling: - Random

sampling is a process of selecting the sample size randomly and
no choice or preference to be made about the selection of
respondents for the market survey and questionnaire to be put
forth against him. Here, Random sampling being adopted by me.

ii) Systematic sampling: - it is a

sampling where the limited number of selected respondents is
figured out based on some criteria so that only those respondents
can be asked for the purpose of filing questionnaire.

The process of Sampling in the Jaipur city was conducted in the chain of
various outlets all over the city. A modern trade outlet chosen because of facts
like; the number of outlets is high and the number of walk ins at each outlet
was comparatively high as compared to any other stores or any other modern
trade outlets. In recent years, consumers have preferred shopping for grocery
and other necessaries at super markets due to reasons like, location of the
store, shopping at leisure and convenience, spacious stores, availability of a
wide array of products, prices offered and the quality of the products.

52
5.6 Limitation of research

Any research in any field topic gives some new results, discovering new areas
etc. but there are always some limitations thereof.

 The data collected is totally dependent on respondents’ views, which

could be bias in nature.

 Sometimes respondents do not give a response or give partial response.

It is called non response error. The reason may be lack of knowledge or
unwillingness to answer.

 The sample size is small and it may not actually represent the whole
population.

 During the survey I came across unfavorable weather conditions like

scorching heat and dust storm.

 There is limited time available each day and lot of tasks have to
completed in a day like preparing reports, conducting surveys, spend
time at the office to gain knowledge, etc.

 The study was conducted in the urban areas and it cannot be applied to
the rural areas because the tastes and preferences of people of rural
and urban areas differ vastly.

 The answers given by the respondents are not always correct and may
be misleading.

 It is very time consuming to go door to door in order to conduct a survey

of various homes and find their views and study their buying behavior.

 Sometimes it becomes very difficult to convince people as many of them

are not at all aware of Saras products and some are very stubborn. It

53
 becomes slightly difficult to convince such people but it is a challenging
task and a good learning experience.

 Being a trainee, no confidential information about the organization is

available. This sometimes became a hurdle during the training.

 In some cases the respondent is not present at home.

 It is not possible and economically viable to recall respondents not

present at home.

 Sometimes the respondents are not educated. Personal interviews are

successful only when the respondents are educated.

54
 5. FACT AND FINDINGS

Consumers perception about the price, schemes availability, quality and etc.
shown in table below-

Pepsi High Satisfied Neutral Dis. High Dis

Variables satisfied satisfied .satisfied
Price 60 70 20 30 20

Schemes 40 70 30 40 20

Availability 50 65 35 20 5

Quantity 45 85 40 18 12

Distribution 48 58 35 32 27

Convince 40 80 32 26 22

Quality 46 68 26 37 23

Pepsi High Satisfied Neutral Dis. High Dis

satisfied satisfied .satisfied

Price 60 70 20 30 20

Priceof pepsi products

High Dis
.satisfied, 20,
10%

High satisfied,
60, 30% High satisfied
Dis. satisfied,
30, 15% Satisfied
Neutral
Dis. satisfied
High Dis .satisfied

Neutral, 20, 10% Satisfied, 70,

35%

55
 Pepsi High Satisfied Neutral Dis. High Dis
satisfied satisfied .satisfied

Schemes 40 70 30 40 20

Schemes

HighDis
.satisfied, 20, Highsatisfied,
10% 40, 20%
Highsatisfied
Satisfied
Dis. satisfied,
40, 20% Neutral
Dis. satisfied
HighDis .satisfied
Neutral, 30, 15% Satisfied, 70,
35%

Pepsi High Satisfied Neutral Dis. High Dis

satisfied satisfied .satisfied
Availability 50 65 35 20 5

Availability

HighDis
.satisfied, 5, Highsatisfied,
3% 50, 29%
Dis. satisfied,
20, 11% Highsatisfied
Satisfied
Neutral
Dis. satisfied
Neutral, 35, 20%
HighDis .satisfied

Satisfied, 65,
37%

Pepsi High Satisfied Neutral Dis. High Dis

satisfied 56 satisfied .satisfied
Quantity 45 85 40 18 12
 Quantity

High Dis
.satisfied , 12, High satisfied,
6% 45, 23%

Dis. satisfied, High satisfied

18, 9%
Satisfied
Neutral
Dis. satisfied
High Dis .satisfied
Neutral, 40, 20%
Satisfied, 85,
42%

Pepsi High Satisfied Neutral Dis. High Dis

satisfied satisfied .satisfied

Distribution 48 58 35 32 27

Distribution
H ighDis
.satisfied, 27,
14% Highsatisfied,
48, 24%

Highsatisfied
Dis. satisfied, Satisfied
32, 16%
Neutral
Dis. satisfied
HighDis.satisfied

Neutral, 35, 18%

Satisfied, 58,
28%

Coca cola High Satisfied Neutral Dis. High

satisfied satisfied Dis
.satisfied
Price 55 72 18 33 22

57
 Priceof cocacola
HighDis
.satisfied, 22,
11%
Highsatisfied,
55, 28%

Highsatisfied
Dis. satisfied,
33, 17% Satisfied
Neutral
Dis. satisfied
HighDis .satisfied

Neutral, 18, 9% Satisfied, 72,

35%

Q. Which soft drink does you like the most ?

(A) Coca cola 40% (B). pepsi 45%

(C.) local soft drinks 5% (D). Juice 10%

Coca cola pepsi local soft Juice

drinks
40 45 5 10

likethemost
Juice
10%

Cocacola
40%
local soft drinks Cocacola
5%
pepsi
local soft drinks
Juice

pepsi
45%

Q. Which soft drink is harmful or has more pesticides?

(A). coca cola 20% (B.) pepsi 20%

(C) local soft drinks 45% (D). Juice 5%

Coca cola pepsi local soft drinks Juice

20 20 45 5
58
 Harmful Drinks
Juice
6%
Cocacola
22%

Cocacola
pepsi
local soft drinks
Juice

pepsi
local soft drinks
22%
50%

Q. Which soft drink is the best at present time ?

(A). coca cola 30% (B) pepsi 45%

(C) local soft drinks 5% (D) Juice 20%

Coca cola pepsi local soft drinks Juice

30 45 5 20

Best drinks

Juice
20% Cocacola
30%

Cocacola
pepsi

local soft drinks local soft drinks

5% Juice

pepsi
45%

7.ANALYSIS AND INTERPRETATION

GRAPH 1
This graph depicts the total number of consumers divided on the basis of the
age group they belong to. The age of consumers included in the sampling
59
activity ranged from 5 years to 75 years. Accordingly the age groups 5 to 15,
15 to 25, 25 to 35, 35 to 45, 45 to 55, 55 to 65 and 65 to 75 have been
formulated. There is not set limit for the age of the consumers. it can be
consumed by people across different age groups with no restrictions being laid
and consumers of all ages enter food world on a given day, either individually
and in the case of children, with their parents. The consumers who were
sampled with were between 5 years and 75 years of age. The approximate
age of the consumers was to be guessed and noted down. Around 50% of
consumers fall in the 25 years to 35 years and 35 years to 45 years age
groups and the other 50% is distributed among the other age groups.

CONSUMERS BASED ON AGE GROUP

Total No. of Co

8%

13%

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GRAPH 2

The following graph denotes the feedback of consumers irrespective of the

age group they belong to or their gender. This is an overall perception of the
consumers towards various products

Opinion of people

11%
GENERAL REACTION OF CONSUMERS ABOUT Product
From the above graph, it can be seen that, more than half the people who
tasted the product liked the product, i.e. they gave positive feedback about the
product and 15% of the consumers did not like the product. Out of the
remaining 19% of consumers, 11% people came up with mixed reactions i.e.
8%
they had reasons both to like and dislike the product and a small chunk of 8%
of the total consumers sampled with, said they did not like the drink too much,
neither did they love the drink.

61
GRAPH 3

The following graph denotes the perception of consumers on the basis of the
age group they belong to. This kind of a classification becomes necessary,
because consumers of different age groups have different tastes and
moreover, the ages of consumers in the sample range from 5 years all the way
to 75 years.

Feedb
87
90

80 76

70

60
mers

62

50
REACTION ANALYSED ON BASIS OF AGE GROUP

From the above graph, it is evident that, across all age groups, a major portion
of consumers liked the product. Further opinions received from different age
groups could be compared and analyzed as follows:

• Ranging from ages 5 to 55, it can be noticed that, in every age group,
more than 50% of the consumers have liked the product.
• In the age group of 5 years to 15 years, 87% of the consumers have
liked the products. The main reason behind this is children are fond of
juices and sweet substances. They crave to have anything that is cold
and the product when sampled, was made sure was cold and the
remaining 13% is divided between average and disliked. There were no
consumers who gave mixed reactions. This could be due to the reason
that children cannot come up with good enough reasons as to why they
like or dislike a product. They just give their opinion.

• In age groups 15 years to 25 years, 25 years to 35 years and 35 years

to 45 years and 45 years to 55 years, the reactions were almost the
same. This age group mostly consisted of college going students,
working people and house wives. The percentage of consumers who
liked the product ranged from 60 to 70%, so it could be said that, around
3 quarters of consumers belonging to those age groups liked the
products. The main reasons for this could be that the most consumers

63
 belonging to these age groups are health conscious and Orange juice is
considered to be one of the most nutritious and healthy juices. Almost
96% of the house wives who were spoken to liked the product. House
wives are home managers and they make decisions when it comes to
daily consumables and they wanted to buy the products especially
because they wanted their children and the rest of their family to have it
as it was safe and healthy.

• Consumers belonging to age groups 55 years to 65 years and 65 years

to 75 years, almost have the same perception about the product. More
than 50% of the consumers jointly fell in Disliked, Average and Mixed
reaction categories mainly because consumers belonging to the age
group of 55 to 75 years are diabetics and they do not intake or they are
not allowed to intake excessive quantities of sugar; Minute Maid Pulpy
Orange being a fruit juice and have added sugar in it was a big no to
them. Some of them were even apprehensive about the Coca-Cola
brand name attached to the product; according to them Coca-Cola
makes only carbonated soft drinks.

64
GRAPH 4

The following graph is a representation of the comparison and analysis of the

feedback given by the consumers based on the gender they belong to. This
kind of an analysis is important due to the fact that males and females have
different tastes, likes and dislikes especially when it comes to choice of foods
and beverages.

70

60

50
% of Consumers

REACTION ANALYSED ON BASIS OF GENDER

On analysis of the above graph, it can be noted that, the gender of the
40
consumer has not made an impact on the reaction obtained from the
consumers. Males and females have shown the same kind of reaction towards
the product. About 70% of the both males and females liked the product. This
30
may be due to the fact that Orange juice is a universal favorite and people
across the world, across both genders love having orange juice. Around 20%

20 65
of both males and females gave an average rating to the products and the rest
were confused.

ADDITIONAL DETAILS

The reasons given by consumers for having liked the product were:

• It is a good thirst quencher, especially in the summer season.

• It is not bitter like other readymade juice products that are available in
the market.

• It has got real pulp in it and when one can feel the pulp and this makes
the drink tastier.

• It is a non-carbonated drink.

• It is as sweet as natural oranges that one buys in the market.

• Due to the natural orange pulp, the juice is healthier.

• It is a ready-to-drink fruit juice.

The reasons given by consumers for having disliked the product were:

• It is too sweet.

66
 • It is too watery i.e. the consistency is not good.

• Fresh fruit juice is preferable.

• Tropicana is preferred because that is not as sweet as Minute Maid

Pulpy Orange.
• It is too bitter.

• It is not as sweet as natural orange juice.

• It was a product of the Pepsico Company and ever since the

controversy, consumers are a little apprehensive about the products of
that company.

• Preferred water to drinking juice.

• It is not exactly a drink for adults; the taste is more to suit children rather
than adults.

• It tastes more like Rasna/Tang.

The above points under categories liked and disliked are contradictory to each
other. Both categories have few same points like the bitterness and the
sweetness of the juice. This contradiction arises due to the following reasons:

• Consumers belonged to different age groups ranging from as young as 5

years all the way to 75 years of age.

67
 • Consumers have different likes and dislikes.

• Consumers have different tastes.

• Level of health consciousness is different among different consumers.

6.SWOT ANALYSIS

STRENGTHS

• DISTRIBUTION NETWORK: The Company has a strong and reliable

distribution network. The network is formed on the basis of the time of
consumption and the amount of sales yielded by a particular customer in
one transaction. It has a distribution network consisting of a number of
efficient salesmen, 700,000 retail outlets and 8000 distributors. The
distribution fleet includes different modes of distribution, from 10-tonne
trucks to open-bay three wheelers that can navigate through narrow
alleyways of Indian cities and trademarked tricycles and pushcarts.

• STRONG BRANDS: The products produced and marketed by the

Company have a strong brand image. People all around the world
recognize the brands marketed by the Company. Strong brand names
like 7up, Mirinda, Nimbus, and Slice add up to the brand name of the
PepsiCo Company as a whole.

• LOW COST OF OPERATIONS: The production, marketing and

distribution systems are very efficient due to forward planning and

68
 maintenance of consistency of operations which minimizes wastage of
both time and resources leads to lowering of costs.

WEAKNESSES

• LOW EXPORT LEVELS: The brands produced by the company are

brands produced world wide thereby making the export levels very low.
In India, there exists a major controversy concerning pesticides and
other harmful chemicals in bottled products. The Centre for Science and
Environment (CSE), a non-governmental organization in New Delhi, said
aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and Coca-Cola, contained toxins including
lindane, DDT, Malathion and chlorpyrifos- pesticides that can contribute
to cancer and a breakdown of the immune system. Therefore, people
abroad, are apprehensive about Pepsico products from India.

• SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO

INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company’s
operations are carried out on a small scale and due to Government
restrictions and ‘red-tapism’, the Company finds it very difficult to invest
in technological advancements and achieve economies of scale.

OPPORTUNITIES

• LARGE DOMESTIC MARKETS: The domestic market for the products

of the Company is very high as compared to any other soft drink
manufacturer. Pepsico India claims a 58 per cent share of the soft
drinks market; this includes a 42 per cent share of the cola market.
Other products account for 16 per cent market share. The company
69
 appointed 50,000 new outlets in the first two months of this year, as part
of its plans to cover one lakh outlets for the coming summer season and
this also covered 3,500 new villages.

• EXPORT POTENTIAL: The Company can come up with new products

which are not manufactured abroad, like Slice etc and export them to
foreign nations. It can come up with strategies to eliminate apprehension
from the minds of the people towards the Pepsi products produced in
India so that there will be a considerable amount of exports and it is yet
another opportunity to broaden future prospects and cater to the global
markets rather than just domestic market.

• HIGHER INCOME AMONG PEOPLE: Development of India as a whole

has lead to an increase in the per capita income thereby causing an
increase in disposable income. Unlike olden times, people now have the
power of buying goods of their choice without having to worry much
about the flow of their income. The beverage industry can take
advantage of such a situation and enhance their sales.

THREATS

• IMPORTS: As India is developing at a fast pace, the per capita income

has increased over the years and a majority of the people are educated,
the export levels have gone high. People understand trade to a large
extent and the demand for foreign goods has increased over the years.
If consumers shift onto imported beverages rather than have beverages
manufactured within the country, it could pose a threat to the Indian
beverage industry as a whole in turn affecting the sales of the Company.
70
• TAX AND REGULATORY SECTOR: The tax system in India is
accompanied by a variety of regulations at each stage on the
consequence from production to consumption. When a license is issued,
the production capacity is mentioned on the license and every time the
production capacity needs to be increased, the license poses a problem.
Renewing or updating a license every now and then is difficult.
Therefore, this can limit the growth of the Company and pose problems.

• SLOWDOWN IN RURAL DEMAND: The rural market may be alluring

but it is not without its problems: Low per capita disposable incomes that
is half the urban disposable income; large number of daily wage earners,
acute dependence on the vagaries of the monsoon; seasonal
consumption linked to harvests and festivals and special occasions; poor
roads; power problems; and inaccessibility to conventional advertising
media. All these problems might lead to a slowdown in the demand for
the company’s products.

71
 6.CONCLUSION

The Sampling activity was a good first step into the area of Marketing and
Sales. It gave good amount of exposure mainly because after being trained,
trainees were given an opportunity to carry out the process ourselves. It
helped in developing a considerable amount of convincing skills, because, it
took a lot of it to convince the store managers to give us cooler space to cool
the product for 2 hours and even more to convince the customers into tasting
the product and to get reviews from them. A good understanding of the market
was accomplished as around 700 people were spoken to and that group
consisted of a variety of customers. This even helped in the polishing of
communication skills, a must-have to survive and make it big in the present
world. It even gave a good understanding of behavior of customers when
placed in different situations. It was a good opportunity to work on the skill of
patience, as a large number of customers were to be dealt with. It helped in
developing the kind of relations one needs to uphold in the corporate world
and it helped in building up the right attitude.

As all the points in the above mentioned paragraph, are the must-have skills
for anyone in the field of Marketing and Sales, the training period was a good
experience and a good stepping stone into the real business world.

As a future line of research, the Marketing and Sales Department could offer
projects like:

• Analysis Impact of advertisements on the Sales of a particular product

• Analysis of major trends in the Indian Non-Alcoholic Beverage market

• Analysis of changing trends in the market for Pepsico products

72
• Formulation of Market penetration strategies

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 6. RECOMMENDATION AND SUGGESTIONS

Taking the above analysis into consideration, the following points can be
regarded for further marketing of the product:

• Advertisements should target the entire family, mainly because it has

been observed that irrespective of age and gender, more than 75% of
the people have liked the product and look forward to buy it again.
Advertisements should highlight the main features of the product that is
the existence of pulp (which is already made prominent in
Advertisements); it should lay emphasis on the health and nutrition value
of the product and also on the fact that it is as good as fresh fruit juice.

• Due to the current prices, an eyebrow raiser for some, the product could
be sold in packs of 2 or more and there could be a price reduction.

• New flavors can be introduced into the market as early as possible

because around 30% of the consumers were eager to know if the drink
would come in more flavors and another 10% of the consumers did not
like Orange juice so they were anticipating the probable launch of other
flavors.

• Smaller packs 200-300 ml can be introduced as, when a customer wants

a small amount of the drink just to quench his thirst for that moment, he
would not want to buy a bottle containing 400 ml or 1litre of the juice.
Therefore, smaller packs of the product do come in handy.

74
 7. APPENDIX

Total number of Consumers sampled and their opinion

Age
Groups Gender Opinion
Mix
M F T Liked Average Reaction Disliked
M F T M F T M F T M F T
5 to 15 26 19 45 23 16 39 2 2 4 0 0 0 1 1 2
15 to
25 42 28 70 35 18 53 3 2 5 4 8 12 0 0 0
25 to
35 86 108 194 56 78 134 6 8 14 6 10 16 18 12 30
35 to
45 93 96 189 65 70 135 10 6 16 6 10 16 12 10 22
45 to
55 36 54 90 21 31 52 5 4 9 5 4 9 5 15 20
55 to
65 18 40 58 8 15 23 0 3 3 6 12 18 4 10 14
65 to
75 30 20 50 12 8 20 4 2 6 5 4 9 9 6 15
331 365 696 220 236 456 30 27 57 32 48 80 49 54 103

75
 Key
M Male
F Female
T Total
L Liked
A Average
MR Mixed Reaction
D Disliked

Table for Graph 1

Age Group Total No. of Consumers
5 to 15 45
15 to 25 70
25 to 35 194
35 to 45 189
45 to 55 90
55 to 65 58
65 to 75 50

Table for Graph 2

Liked 456
Average 57
Mix Reaction 80
Disliked 103

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 Table for Graph 3 (In Numbers)
Age Group Liked Average Mix Reaction Disliked
5 to 15 39 4 0 2
15 to 25 53 5 12 0
25 to 35 134 14 16 30
35 to 45 135 16 16 22
45 to 55 52 9 9 20
55 to 65 23 3 18 14
65 to 75 20 6 9 15

Table for Graph 3 (Rounded Up % ages used in Graph)

Age Group Liked Average Mix Reaction Disliked
5 to 15 87 9 0 4
15 to 25 76 7 17 0
25 to 35 69 7 8 16
35 to 45 72 8 8 12
45 to 55 58 10 10 22
55 to 65 40 5 31 24
65 to 75 40 12 18 30

Table for Graph 4 (In Numbers)

77
Gender Liked Average Mix Reaction Disliked
Male 220 30 32 49

Female 236 27 48 54

Table for Graph 4 (Rounded Up %ages)

Gender Liked Average Mix Reaction Disliked
Male 67 9 10 14
Female 65 7 13 15

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 8. BIBLIOGRAPHY

BOOKS:

Marketing management BY: Philip cotler

Research methodology BY: C.R. Kothari

Magazines-

Business today
Business work

Web sites-

www.dictionary.com
news.bbc.co.uk
www.pepsico.com
www.google.com
www.jaipuriagroup.com

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