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PROJECT REPORT

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AS A PARTIAL FULFILLMENT FOR THE AWARD

OF THE DEGREE OF

BACHELOR OF MANAGEMENT STUDIES

SESSION : 2010- 2011

SUBMITTED BY SUBMITTED TO:

Vinod . N . Malviya … .. ………
BMS-V Semester Faculty of BMS
Roll No : - 433

Western college of commerce and business management..

Navi Mumbai
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TABLE OF CONTENTS

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

1) COMPANY PROFILE

A. SWOT ANALYSIS OF COMPANY

B. MARKETING STRATEGY OF THE COMPANY

2) INTRODUCTION OF PROJECT

A. RESEARCH OBJECTIVE

3) RESEARCH METHODOLOGY

4) DATA ANALYSIS & FINDINGS

5) LIMITATIONS

6) RECOMMENDATIONS

7) CONCLUSIONS

8) ANNEXURE

9) QUESTIONNAIRE

10) BIBLIOGRAPHY
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ACKNOWLEDGEMENT
…………..
Mr. Vikas Gautam (Sr. Customer Executive) and Mr. Pankaj Sharma
(Customer Executive) ……………..

NAME…………….
T.Y.BMS.

EXECUTIVE - SUMMARY

This project was undertaken during the summer Training. A great deal of
effort has been put in preparing the questionnaire, in order to understand the market
better {Mumbai}.

Objectives: -
 Extent to which merchandising assets are being used by the retailers in
promoting the brands.

 Market demand of Pepsi vis-à-vis Coca Cola and Thumps up.

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 Market demand of Mirinda-O vis-à-vis Fanta

 Market demand of Mirinda-L vis-à-vis Limca, Mountain dew, Sprite and 7up

 Market demand of Slice vis-à-vis Maaza.

 Market comparison of all the available brands of the soft drinks in the market.

 Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its brands.

A BRIEF DESCRIPTION OF THE FINDINGS:

1. Extent to which merchandising assets are being used by the

retailers in promoting the brands: -
Retailer who are having DPS Boards / GSB and other display
material like stands, posters etc. were selected. Display material on the retailers shop
was given rank between 1, 2 and 3 according to their visibility. If the DPS Boards / GSB
and other display material were found visible at first sight then they have been ranked
'1st', if they were found visible at second sight then they have been ranked '2nd'
otherwise '3rd'.In the similar fashion ranks were allotted to the refrigerators in the
retailers shop.

While entering each shop it was taken care that the display
materials are properly ranked according to there visibility and incase of confusion,
opinion of the consumers were taken. Those shops with GSB’s were visited during the
 ~6~

evening in order to see there visibility. In these cases some glaring facts were found.
(Areas which were looking like monopoly markets of Coca-Cola because of its Red-
color during the day had altogether a different look in the evening. They turned into
Pepsi monopoly during the evening because of the GSB's. Researcher have also tried
to find out what are the difficulties retailers are facing on using these brands up to 100%
of their strength.

2. Market demand of each of Pepsi’s product vis-à-vis to their

competitor flavours in Coca-Cola's artillery: -
For this, retailers were asked about the market demand of the
different brands and they have been asked to rank the brands with respect to their
competitive flavors. In this also some interesting facts came out like no lemon brand
exists in front of Pepsi.

Our Mountain dew, which we were thinking that it will be competing

with Limca, actually it is grabbing the Coca-Cola's Sprite’s market and Pepsi’s, 7up's
market. In case of Mirinda (O) and Coca-Cola's Fanta, Mirinda’s market is going up
day by day.
In case of mango drinks Slice even after entering the market so late
has been able to quickly pick up with Maaza. From the day Tetra Slice has entered the
market it has captured the market of Frooti.

In case of Aquafina, Coca-Cola's Kinley stands nowhere but

brands which are competing with kit are Paras, Bisleri, and Kingfisher.

3. Market comparison of all the available pickings of the soft drinks in

the market: -
In the market this study is done to find out that on which packing,
company should concentrate more. From the day company has introduced its 200ml
packs; Pepsi is more economical for the lower income grade consumers like Riksha-
pullars and others.
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4. Brands/ Pack availability of Coca-cola and its brands vis-à-vis

Pepsi and its brands: -

For this study, retailers were asked that how many bottles they are
having in their fridge and how many of them are of the brand whose fridge they are
having and about the capacity of their fridge. In spite of these findings Researcher have
worked on some other things like retailers expectations from the company. He tried to
find out how the company can increase the sales. In the answer to this some funny
recommendations came up (some consumers recommended that Pepsi should change
the percentage of the sweetening content of its cola drinks).
 ~8~

ABOUT RKJ GROUP

Welcome to our Group website, designed to open up our

business and inform you about RKJ Group. With the
rapid advancement of technology, the Internet is the
most efficient way to give you up to date and easily
accessible information. We hope you find this website a
useful and effective way of learning more about RKJ
Group.

ABOUT US:
It can be said with absolute certainty that the RKJ Group has
carved out a special niche for itself. Our services touch different aspects of
commercial and civilian domains like those of Bottling, Food Chain and
Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to
expertise and leadership in the fields of education, food and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods
Limited to manufacture and market Pepsi brand of beverages in geographically
pre-defined territories in which brand and technical support was provided by the
Principals viz., Pepsi Foods Limited. The manufacturing
facilities were restricted at Agra Plant only.

Varun Beverages Ltd. is the flagship company of the

group.

The group also became the first franchisee for Yum

Restaurants International [formerly PepsiCo Restaurants
(India) Private Limited] in India. It has exclusive franchise rights for Northern &
Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under
its company.
 ~9~

We diversified into education by opening our first school in

Gurgaon under management of Delhi Public School Society. The schools of the
group are run under a Registered Trust namely Champa Devi Jaipuria
Charitable Trust.

Companies are medium sized, professionally managed,

unlisted and closely held between Indian Promoters and foreign collaborators.

The group added another feather to its cap when the

prestigious PepsiCo “International Bottler of the Year” award was presented to
Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s
centennial year celebrations at Hawaii, USA. The award was presented by Mr.
Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush,
the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board &
C.E.O., PepsiCo Inc. and Mr. Craig

Our Success

Weatherup, President of Pepsi Cola Company.

Production of innovative, high quality retail branded
beverages combined with world-class packaging.
Driven by a management team with a relentless
focus on achieving superior customer service, driving
earnings improvement and increasing shareholder
value.
 ~ 10 ~

Our People

At RKJ we are creating an environment where our employees

enjoy a greater degree of empowerment - both individually and in their work
teams.

Our employees are equipped with the necessary tools, training

and management backup for strong performance and accountability, as well as
with an environment of open communication and involvement.
 ~ 11 ~

BUSINESS SEGMENTS

The RKJ Group is divided into three business segments-

Beverage, Food and Education. It has a leading market position in each of its
three business segments. Our balanced portfolio produced a solid business
performance. Products and services which look to the future ensure that we will
be well-placed in growth markets.
 ~ 12 ~

FOOD.

The last decade has been a period of dynamic growth for non-
alcoholic drinks and has witnessed completely new segment of
the food market in India taking shape. To capitalize on the RKJ
group’s significantly important relationship with Pepsi Foods, it
decided to venture into Foods sector, which is second largest
business for Pepsi all over the world. Fast food is the most happening things
across the world. The group became the first franchisee for Yum Restaurants
International [formerly PepsiCo Restaurants (India) Private Limited] in India. 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 Defence Colony, Alaknanda, 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(Ghaziabd) and Kolkatta
(2).

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

Ice Creams under “Candia” brand

The group has its presence in the Ice Cream segment since 1991,
when it started manufacturing and marketing Ice Cream under the
brand name of “Gaylord” in the state of U.P. During 1996 it sold
its brand to Brooke Bond and started supplying Ice Cream to
Hindustan as their Ice Cream sourcing plant. After working for
10 years in this field, during launched its own brand in technical and marketing
collaboration with Candia of France
 ~ 13 ~

EDUCATION

The R K J Group has been associated with excellence in

education. It strongly believes that investment in quality
care and education for young minds is essential for the
future growth and development of our country. The
group’s foray into the school education is intended to
provide exceptional opportunities for the development of the academic abilities of
the students. The schools run by the group encourage students to become
creative, innovative and imaginative. They have a wide range of co-curricular
activities, which are as important as the academic disciplines.

School life merges with a plethora of activities to suit every

schedule, talent and interest in the areas like indoor and outdoor games,
swimming, art and culture, music and drama, Yoga and martial arts, community
service, etc. The school's approach to education has been designed to ensure
that the students realize their true potential and grow up to become complete
individuals and responsible citizens.

The group’s foray into pre-school education is in line with

educational projects of the group. “We see no competition because pre-school
education is a niche market. There is no specialized way of teaching pre-
schoolers here”, says Jaipuria. The year 2001 witnessed the further spread of
the group’s portfolio with the opening of its first school at Gurgaon under the
management agreement with Delhi Public School Society. To expand in the field
of education it opened its second school at Jaipur under the management of
same society.
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The Group has entered into a join venture partnership with

Modern Montessori International (MMI) Singapore, to open
pre-school educational institutions across the country.
Forming a new entity, Modern Montessori International (MMI)
India in which the Group will have 51 per cent equity stake,
the company invests Rs 200-crore investment in the Indian operations in the next
five years.

MMI India plans to open four schools by April 2004 and as

many as 14 schools by 2005. The company will be opening its first school in
Gurgaon. The long-term agenda includes.

The R K J Group has been associated with excellence in

education. It strongly believes that investment in quality care and education for
young minds is essential for the future growth and development of our country.
The group’s foray into the school education is intended to provide exceptional
opportunities for the development of the academic abilities of the students. The
schools run by the group encourage students to become creative, innovative and
imaginative. They have a wide range of co-curricular activities,
 ~ 15 ~

VARUN BEVERAGES LTD.

COMPANY PROFILE

Varun Beverages Ltd. is a FOBO – Franchisee Oriented Bottling Operation of

Pepsi, headed by Mr. Ravi jaipuria.

Year of establishment 1993

Corporate Office F-34, Sec-6 Noida (U.P.)

Manufacturing Facilities (a) Varun Beverages Ltd.

Surajpur plant, Greater Noida (U.P.)

(b) Agra Beverages Agra (U.P.)

(c) Varun beverages, Jaipur (Raj.)

Operating are areas : Whole of east Delhi

Noida, Mumbai, Haridwar, Agra, Aligarh, Mathura, Faridabad, Gurgaon,

Ballabhgarh, Jaipur etc.

Production Capacity : 1400 Bottles per Minute.

(Surajpur Plant Greater Noida)

 ~ 16 ~

VARUN BEVERAGES LTD.

Mr.. R.K. Jaipuria who heads Varun Beverages Ltd. and has
been adjudged Best Pepsi Bottler of the world for the current year. He was
presented with the Donaid M. Kondell Bottler of the year award, the highest
honour to any franchisee.

He is thoroughly experienced in setting-up and running

Pepsi Cola Bottling Plant in India. The past experience of the family in beverage
industry is since the sixties when it had the first franchise at Agra. Family has in
total 12 bottling plants in Indian and produces and markets 40% of the Pepsi
requirement in India. The plants are located at Greater Noida, Jaipur, Delhi,
Agra, Nagpur, Hyderabad, Raipur, Vishakapatnam, Guntur, Bhopal and Cuttack.
Group also has got franchise for Kwality Walls Ice Cream from Brooke Bond
Lipton India Limited. As Franchisee for Kwality Walls Ice Cream from M/s Brooke
Bond Ltd

1. The group caters to the ice creams demand for the state
of U.P… The group owns state-of- art facilities to manufacture Ice Cream at
Agra. Recently Group has also signed a franchise agreement with Tricon
Restaurants’ (India) Pvt. Ltd., to start a chain of restaurants in northern India
under the name of PIZZA HUT by opening 15 restaurants. The first four of its
Restaurants are already operational at

(i) Ganpati Plaza, M.I. Road Jaipur, Rajasthan (ii) Defence Colony, New Delhi (iii)
Handicraft, Nagar Faterhabad Road, Agra and (iv) Connaught Place, New Delhi
and are making profits. One other Restaurant at Sector-18 Noida (U.P.) will also
be shortly opened for public.

The Group companies are doing very well in terms of Profitability,

Growth, and Market leadership and enjoy good credibility with its business
associated including Pepsi Foods Ltd., the companies enjoy substantial sales-tax
exemptions under the local laws leading to additional profit margins.
 ~ 17 ~

COMPANY PROFILE

VISION OF THE COMPANY:

Satisfying the end consumer, and provide value to each
penny he is spending in buying cold drink.

MISSION OF THE COMPANY:

To provide quality soft drink to the consumer or market.

PEPSI-COLA COMPANY, HEADQUARTERED IN NEW YORK IS THE GLOBAL BEVERAGE DIVISION

OF PEPSICO. INC.

Pepsi-Cola was founded at the turn of the century by Caleb

Bradham, a New Bern, N.C. druggist who first formulated the beverage. Today,
Brand Pepsi and other Pepsi-Cola North America products – including Diet
Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands – account for nearly
one-third of total soft drink sales in the United States, a consumer market totaling
about $56 billion. Pepsi-Cola beverages are available in about 170 countries.

Pepsi-Cola North America also makes and markets ready-to-drink iced teas and
coffees, respectively, via joint ventures with Lipton and Starbucks.

PepsiCo. Inc. is among the most successful consumer

products company in the world, with 1998 revenues of over $22 billion and
151,000 employees. The company consists of:

Pepsi-Cola Company, the world's second-largest beverage

company Frito-Lay Company, the world's largest manufacturer and distributor of
snack chips Tropicana Products, Inc., the world's largest marketer and producer
of branded juices
 ~ 18 ~

PepsiCo. Mission Statement:

PepsiCo's overall mission is to increase the value of our

shareholder's investment. We do this through sales growth, cost controls and
wise investment of resources. We believe our commercial success depends
upon offering quality and value to our consumers and customers; providing
products that are safe, wholesome, economically efficient and environmentally
sound; and providing a fair return to our investors while adhering to the highest
standards of integrity.
 ~ 19 ~

Environmental Commitment

Pepsico. Inc. serves consumers in two major businesses:

beverages and snack foods. The company consists of Pepsi-Cola Company, the
world’s second largest beverage company, Tropicana Products, Inc. the world’s
largest marketer and producer of branded juices and Frito-Lay Company, the
world’s largest manufacturer and distributor of snack chips. Pepsico. brand
names are among the best known and our operations reach every corner of the
world.

As a consumer products company, Pepsico. does not

have the major environmental problems of heavy industry. Our biggest environ-
mental challenge is packaging generated by our products. Packaging is
important to public health and a critical component of the distribu-tion system that
delivers products to consumers and commercial establishments. To meet both
consumer demand and safeguard the environment, we recycle, reuse and
reduce packaging wherever possible. Each business is also committed to
responsible use of resources required in manufacturing our products.

Pepsico. is proud of our environmental record. Each of our

divisions and facilities is empowered to find solutions to its unique environ-mental
challenges. This report addresses the environmental prin-ciples presented in our
Code of Conduct and examines our progress.
 ~ 20 ~

CORPORATE OVERVIEW:

Pepsico. Inc. is among the most successful consumer products company in the
world, with 1999 revenues of over $20 billion and 1,16,000 employees. The
company consists of: Frito-Lay Company, the largest manufacturer and
distributor of snack chips; Pepsi-Cola Company, the second largest soft drink
business and Tropicana Products, the largest marketer and producer of branded
juice. Pepsico. brands are among the best known and most respected in the
world and are available in about 190 countries and territories.

Some of Pepsico.'s brand names are 100 years old, but the
corporation is relatively young. Pepsico. Inc. was founded in 1965 through the
merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998.

Pepsico.'s success is the result of superior products, high

standards of performance, distinctive competitive strategies and the high integrity
of our people.

Our overriding objective is to increase the value of our

shareholders' investment through integrated operating, investing and financing
activities. Our strategy is to concentrate our resources on growing our
businesses, both through internal growth and carefully selected acquisitions. Our
strategy is continually fine-tuned to address the opportunities and risks of the
global marketplace. The corporation's success reflects our continuing
commitment to growth and a focus on those businesses where we can drive our
own growth and create opportunities.
 ~ 21 ~

PEPSICO. HEADQUARTERS:

PepsiCo. Inc. World Headquarters is located in 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.

The collection of works is focused on major twentieth

century art, and features works by masters such as Auguste Rodin, Henri
Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro
and Claes Oldenberg. The gardens were originally designed by the world famous
garden planner, Russell Page. The grounds are open to the public, and a visitor's
booth is in operation during the spring and summer.
 ~ 22 ~

BEVERAGES
Pepsi-Cola Company:_-

PepsiCo’s beverage business was founded at the turn of the

century by Caleb Bradham, a New Bern, NC druggist who first formulated Pepsi-
Cola. Today consumers spend about $32 billion on Pepsi-Cola beverages. Brand
Pepsi and other Pepsi-Cola products - including Diet Pepsi, Pepsi-One, Mountain
Dew, Slice and Mug brands - account for nearly one-third of total soft drink sales
in the United States, a consumer market totaling about $58 billion.

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

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.
 ~ 23 ~

Pepsico. Products:
PepsiCo. Has hundreds of brands. These are some of the best known.

Pepsi-Cola Brands

Pepsi-Cola

Diet Pepsi

Mirinda

Mountain Dew

Lipton Teas (Partnership)

Aquafina Water

7 Up (outside USA)

Slice
 ~ 24 ~

INDUSTRY PROFILE (INDIA)

Pepsi, for once on the defensive, is getting lucky – the men in blue aren’t
just looking cute, they’re rocking.”

The glass will not crack this summer. Crates will not melt either,
as coke and Pepsi vow to keep them chilled and moving all the time. There’s
frenzied excitement at Pepsi. This year, believe analyst, will be different. After all,
soft drinks have hit the magical price point of Rs 5. And the two cola majors see
hords of sticky consumer looming large. The agenda before the two cola giants is
to expand the market, rather than indulge in a muddy street fight.

For years, soft drink rivals have been gnawing at each other, sneering at each
other’s claim and counter claim, comparing market shares, finding flaws in the
methodologies of retail audits – and making a noise about them, whenever they
are favorable. In this age old rivalry there was little for consumers to cheer about.

They found it about as interesting as you’d find a neighborhood

brawl.But something changed a few months ago. In October last year coke
slashed price by an aggressive 15 to 25 %, forcing Pepsi to follow Suit. It
becomes a price war that gave consumers a reason to smile. It was not easy for
either player. They could do it only by packing efficiency into their operations:
cost cutting and restructuring to withstand price cuts.

Coke and Pepsi want to use their new pricing to drive growth,
slurping up new consumers and penetrating deeper into the existing market. The
winner will clearly be the one that gain initial advantage in the race and make no
mistake, the gain could well decide the fate of the brand over the long term, but
the two rivals believe that the fight over the new consumer base may turn out
fiercer.
 ~ 25 ~

Current situation is that the soft drinks have hit the magical price
of Rs. 5; agenda is to expand the market penetration deeper into the existing
one.

KEY POINTS

BASIS COKE PEPSI

Strategies used  Firstly, it reduced the  It followed that to catch

price to Rs.5 for 200ml to new consumer and to
attract new customer increase availability of
with rural market support product to satisfy demand
by making it available at which finally will lead to
the price of Tea, Coffee have in-depth penetration
etc. in homes.

1) Investment
 Rs 1000 crore for  Rs 400 crore for capacity
capacity expansion and expansion and
infrastructure. infrastructure.

Advertising
 Thanda Matlab Coca
Cola  Yeh Dil Maange More
 Paach matlab Chota -By Sachin Teldulkar as a
Coke Brand AMBAssador
 Jo chaho ho jaaye coca
cola enjoy

- By Amir Khan as a Brand

 ~ 26 ~

AMBAssador

Brand Range

Coca-Cola Pepsi

Thums-up Mirinda

Limca 7-up

Fanta Mountain Dew

New Launch

Chota Coke at Rs 5 500 ml Pepsi ( Diet Pepsi)

Mountain Dew

2 liter PET Bottle

COMPANY PROFILE: -
VISION OF THE COMPANY

Satisfying the end consumer, and provide value to each penny he is spending in
buying cold drink.

MISSION OF THE COMPANY

To provide quality soft drink to the consumer or market.

PEPSICO AT A GLANCE

PepsiCo is a world leader in convenient foods and beverages, with revenues of

about $25 billion and over 142,000 employees. The company consists of the
snack businesses of Frito-Lay North America and Frito-Lay International; the
beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North
America and PepsiCo Beverages International; and Quaker Foods North
 ~ 27 ~

America, manufacturer and marketer of ready-to-eat cereals and other food

products. PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 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.

PepsiCo’s success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high integrity of our
people.

Our mission is 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 the communities in which we operate.
And in everything we do, we strive for honesty, fairness and integrity.
 ~ 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 Amsterdam,
Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash
dividends since the corporation was founded.

CORPORATE CITIZENSHIP
PepsiCo believes that as a corporate citizen, it has a responsibility to contribute
to the quality of life in our communities. This philosophy is put into action through
support of social agencies, projects and programs. The scope of this support is
extensive – ranging from sponsorship of local programs and support of employee
volunteer activities, to contributions of time, talent and funds to programs of
national impact. Each division is responsible for its own giving program.
Corporate giving is focused on giving where PepsiCo employees volunteer.

PEPSICO HEADQUARTERS
PepsiCo World Headquarters is located in Purchase, New York, approximately
45 minutes from New York City. Edward Durrell Stone, one of America’s
foremost architects, designed the seven building headquarters complex. 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.

Masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder,
Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg focus the collection
of works on major twentieth century art, and features works. The gardens were
originally designed by the world famous garden planner, Russell Page, and have
been extended by François Goffinet. The grounds are open to the public, and a
visitor's booth is in operation during the spring and summer.
 ~ 29 ~

GLOBAL PARTNERS
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.

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
 ~ 30 ~

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.

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

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.
 ~ 31 ~

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.

Gatorade/Tropicana North America

Anthony Rossi as a Florida fruit packaging business
founded Tropicana in 1947. The company entered the concentrate orange juice
business in 1949, registering Tropicana as a trademark.In 1954 Rossi pioneered
a pasteurization process for orange juice. For the first time, consumers could
enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a
ready-to-serve package. The juice, Tropicana Pure Premium, became the
company’s flagship product.In 1957 the name of the company was changed to
Tropicana Products, headquartered in Bradenton, Florida. The company went
public in 1957, was purchased by Beatrice Foods Co. in 1978, acquired by
Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company Ltd. in
1988. Seagram purchased the Dole global juice business in 1995. PepsiCo
acquired Tropicana, including the Dole juice business, in August 1998.

Today the Tropicana brand is available in 63 countries.

Principal brands in North America are Tropicana Pure Premium, Tropicana
Season’s Best, Dole Juices and Tropicana Twister. Internationally, principal
brands include Tropicana Pure Premium and Dole juices along with Frui'Vita,
Loóza and Copella. Tropicana Pure Premium is the third largest brand of all food
products sold in grocery stores in the United States.Gatorade sports drinks were
 ~ 32 ~

acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo
with the merger in 2001.

QUAKER FOODS NORTH AMERICA

The Quaker Oats Company was formed in 1901 when several
American pioneers in oat milling came together to incorporate. In Ravenna, Ohio,
Henry D. Seymour and William Heston had established the Quaker Mill
Company and registered the now famous trademark. Seymour wanted his
product to be a symbol of honesty, integrity and strength. The figures of a man in
Quaker clothes became the first registered trademark for breakfast cereal and
remain the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart
and his son, Robert, and their partner, George Douglas, operated the largest
cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King,"
had founded German Mills American Oatmeal Company in 1856.

Combining The Quaker Mill Company with the Stuart and

Schumacher businesses brought together the top oats milling expertise in the
country as The Quaker Oats Company. The first major acquisition of the
company was Aunt Jemina Mills Company in 1926, which is today the leading
manufacturer of pancake mixes and syrup.

In 1986, The Quaker Oats Company acquired the Golden Grain

Company, producers of Rice-A-Roni.

PepsiCo merged with The Quaker Oats Company in 2001. Its products still have
the eminence of wholesome, good-for-you food, as envisioned by the company
over a century ago.
 ~ 33 ~

CAREER OPPORTUNITIES AT
PEPSICO. WORLDWIDE HEADQUARTERS:

Pepsico., Inc. is a worldwide leader in vast and growing markets: beverages,

snack foods and juices. Our company's brands, which include Pepsi-Cola, Frito-
Lay and Tropicana, are among the best known and most successful in the world.

Our continued growth has created outstanding career opportunities for talented
professionals in a variety of specialized fields at our corporate world
headquarters, located in NEW YORK. We are always looking for good people in
the areas of:

• Information Technology

• Treasury

• Tax

• Human Resources

• Law

• Accounting

• Public Affairs

• Audit all successful applicants share a commitment to Pepsico.'s goals

and an ability to thrive in a fast-paced, results-oriented environment. In
exchange, we offer a highly competitive compensation and benefits
package.
 ~ 34 ~

SWOT ANALYSIS
STRENGTHS:
• Company belongs to the FMCG sector so the demand will never die.

• A large and strong distribution network. (In comparison to the other

competitive brand Pepsi is having better reach to the market.)

• Professional and dedicated manpower. (Starting from the higher-level

management to the sales-man Pepsi’s employees is having great degree
of dedication and professional attitude towards selling the products. On
the other hand companies’ operational staff always try their maximum
strength to meet the demand and utilize the recourses to maximum.)

• More emphasis on market penetration (Companies efforts of providing the

Pepsi and other products to the customer’s doorstep are working vis-à-vis
wherever the transportation is not possible dealers are appointed).

• In comparison to Coca-Cola’s red color, which is brighter and have more

visibility Pepsi’s blue color provide sense of relax ness in the bright sunny
day.

• In the rural areas and outskirts of the city where there is maximum
population is illiterate, Pepsi is having an edge. (As compared to Coca-
Cola, pronouncing Pepsi is lot more easy reason for more demand of the
Pepsi and its brands.)

• More popularity among the kids and female youth. (Because of the
sweetened taste Pepsi and its other brands attracts the kids and female
more. Mirinda is found more popular among kids.).

• Retain ability of the T.V. advertisements of Pepsi is far more in

comparison to Coca-Cola. (Pepsi’s T.V. advertisement in which Sachin
Tendulkar whistles at the end has maximum retain ability. Other than this
world cup 2003 advertisement campaign that comprises of Sachin
 ~ 35 ~

Tendulkar, Shane Warne and Carl Hooper, advertisement campaign

which compraises of Amitabh Bachhan, Karina Kapoor and Adnan Sami
and latest advertisements of Pepsi and Mountain Dew (Do the Dew) are
very famous. On the other hand Coca-Cola’s advertisement campaign of
“thanda matlab Coca-Cola” and Amir Khan’s five rupees ad have the
maximum retainability.
 ~ 36 ~

WEAKNESS:

• Coca-Cola’s red color has more visibility than Pepsi’s blue color. (Because
of the bright color of Coca-Cola it is more visible even from the distance
as compared to Pepsi)

• Pepsi’s sinages are far more scattered as compared to Coca-Cola.

(Because of this at some places it looks that the market is captured by
Coca-Cola.).

• Low plant capacity because of which company is not able to meet its
demand during the peak season (Varun Beverages India Ltd., Pepsi’s
Greater Noida plant has one continuous assembly line for preparing tetra
and four continuous assembly lines’ which are filling around 15,000
bottle/day, which is insufficient to complete the demand during the peak
seasons.).

• Lesser plant utilization during the off-peak seasons (During the winter
season as the demand is very low, plant and resource utilization goes
down.)

• Lack of automaton in the administrative department in the plant, which

results in wastage of time and sometimes in resources also.

OPPORTUNITIES:
• Demand is more than the production. (Because of the heat the demand of
the soft drink raised drastically which is the good opportunity for the
company a the rival brands are also finding it difficult to complete the
demand. Therefore Pepsico.. has to increase the production.)
 ~ 37 ~

• In the rural areas Pepsico.’s distribution network is far stronger vis-à-vis to

any of the competitor. Therefore it is viable to make it more stronger,
as this can restrict the entry of the other brands in the rural market.

• Kids demand for the Mirinda more as compared to any other orange flavor
soft drink brand.

• With the launch of slice tetra Pepsico. has entered in to one more segment o soft
drink beverages, which was more or less captured by the “Frooti” till now.

THREATS:-
• Not able to meet the market demand during the peak season. (As the
plant capacity is very low the company is not able to meet the existing
demand during the peak seasons).

• There is lot of complaints are coming up about the impurities or leakage of

gas or leakage of carbonated water. (Within the last 30 days I met around
50 such complaints because of which retailers were very angry with the
company).

• There is no proper policy of distributing the merchandising assets of the

company to the retailers. (Many of the retailers have so many things
though their sales are low but few of them don’t have anything inspite of
large sales.).
 ~ 38 ~

MARKETING STRATEGIES
1) Pepsi sales club:
This club is for the retailers. In this approach retailers are given some points
once in a month depending upon how they are using the display material
provided by the company to them. This material consists of Fridges, DPS
Boards, Glow Sign Boards, Display Bottles (500ml. 1lt. 2lt, Commodity
Packs, Stands, Posters etc. Depending upon these points retailers are
rewarded by certain gifts from the company.

The retailers are participating in these schemes curiously. But few of the retailers
found furious and angry because they had lost the points because of
miscommunication or lack of guidance. Therefore they need some kind of
guidance from the company. It would be a better idea that our salesman who
are distributing the beverages to the retailers can be equipped by the
appropriate training so that they can guide the retailers about how to use
their display material to 100% of their strength and able to tell about the new
schemes convincingly.

2) Schemes:
Pepsi Beverages India comes out with the schemes on their different products
many times in a year. Most of these schemes are made to benefit the retailers.
Some of the schemes are as follows:

• 1 bottle of 2lt. free with one 2lt bottle pet.

• 3 bottles of 500ml free with one 500ml bottle pet

• 4 tetra packets of tetra slice mango free with one tetra 24 pieces of slice
mango.

• 1bottles of Aquafina free with one pet of Aquafina.

 ~ 39 ~

These schemes keep on changing depending upon the stock. Beverages

companies are giving these schemes despite of acute shortage of soft drink in
every segment to meet the competition, to make sure the availability their brands
and sometimes to satisfy and benefit the retailers and the end consumers.

3) Advertising:
Through the consumers survey it has been proved that the T.V. commercials and
sinages affect the consumer buying behaviour by approximately 70%. May be
only Pepsico. is investing huge finances in the T.V. commercials and other
sinages, big names of Indian film industries and sports hero’s are being
proposed to become the brand promoters and brand ambassadors. Sachin
Tendulkar, Amitabh Bachhan, Karina Kapoor and more are being offered huge
amount for carrying out the promotions. Pepsi’s T.V. advertisement in which
Sachin Tendulkar whistles at the end has maximum recall value. Other than this
world cup 2003 advertisement campaign that comprises of Sachin Tendulkar,
Shane Warne and Carl Hooper, advertisement campaign which comprises of
Amitabh Bachhan, Karina Kapoor and Adnan Sami and latest advertisements of
Pepsi and Mountain Dew (Do the Dew) are very famous. Few of the areas
through which advertising is being done are as follows:

• Television commercials

• Posters

• DPS boards

• Glow Sign boards

• Date calendars

• Food and fizz

• Space clube
 ~ 40 ~

4) Promotion through restaurants and cinema hall holdings:

Pepsi co. is tying up with different chains of restaurants and fast
food centers like Pizza Hut to promote the Pepsi and its other brands like
Mirinda, Mountain Dew etc. these restaurants are authorized to keep and use the
merchandising assets of Pepsi. Usually these kinds of restaurants and fast food
chains are in contract with the Pepsi Co., so that they cannot promote any other
brand.

5) Merchandising assets:
Pepsi Co. also try to promote their brands by providing their
retailers and dealers some display items. Some of such items are as follows:

1. Fridges

2. Pepsi/mountain due stands

3. Display bottles

4. Posters

Pepsi Co. provide the above things to the retailers to use them in promoting
companies brands and products, and provide refrigerators to the retailers in the
hope that these retailers only use these assets in promoting the Pepsi’s products
and they will chill the Pepsi’s products so that its products will always be
available to the end consumers. But it is not true in most of the cases. Retailers
usually use the merchandising asset of one company in such a way that it
benefits another company. Sometime they do it unknowingly, sometimes they do
it knowingly and sometimes because of the deficiencies of the company itself.
These deficiencies are as follows: -

1. Irregularity of the salesman to the retailers shop.

2. Shortage of the different products and different packages.

3. Sometimes because of the rude behavior of the salesman.

 ~ 41 ~

6) Strengthen distribution network and promotions through

word of mouth through sales man:
Unlike the rival brand Coca-Cola, Pepsi Co. Basically depends upon its sales
man for promoting and launching the new as well as old brands because instead
of doing the business through dealer’s network like Coca-Cola, Pepsico. believes
in making and maintaining relations with retailers directly. Therefore salesman is
the very important part of Pepsico. marketing strategy.
 ~ 42 ~

INTRODUCTION
Every year with the start of summers in India the real race to quench the thirst of
the consumers begins in the soft drink beverages industry. Every year millions
participate in it, either in the hot sun or sitting at home watching their, sipping the
soft drink and watching the newly launched advertisements.

Soft drinks manufacturers in India face a number of major problems, such as

distribution difficulties. Access to the 500,000 villages is limited due to the poor
road network. Inconsistent tax policies, the prevalence of duplicates, hefty
packaging costs and India's seasonal nature are other factors holding back
growth.

During New Year the two of the largest soft drink giants in India Pepsi and Coca-
Cola start experiments with products, packages, flavors and prices in an effort to
boost their market share. For this the biggies make huge investments in terms of
advertising, setting up new and more productive and modernized plants,
improving the distribution network to get better reach to the end consumer.

One of the areas where these companies are making huge investments is
merchandising. This is the area where companies try to get the maximum display
in the consumer’s eyes at the retailers shop through refrigerators, glow
signboards, DPS boards, stands, posters, display bottles etc. But the question
arises that whether these retailers are making the proper use of

these materials, which the company is providing them. Are they using these
materials to their optimum level in promoting the product of the company that has
provided them the merchandising material? Are the companies getting the
optimum results of the investments they are making in this area?
 ~ 43 ~

Researcher have tried to find out answers to the above questions in his research
work, which researcher has conducted during his summer training during the
partial fulfillment of his MBA programme. The objective of report is as follows: -
 ~ 44 ~

RESEARCH OBJECTIVE

• To find out to which extent merchandising assets are being used by the
retailers in promoting the products of the Pepsi.

• To find out market demand of Pepsi vis-à-vis Coca Cola and Thums up.

• To find out market demand of Mirinda-O vis-à-vis Fanta

• To find out market demand of Mirinda-L vis-à-vis Limca, Mountain dew,

Sprite and 7up.

• To find out market demand of Slice vis-à-vis Maaza.

• To find out market comparison of all the available brands of the soft drinks
in the market.

• Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its
brands.
 ~ 45 ~

RESEARCH METHODOLOGY

Researcher began his survey with route riding, i.e. travelling along with the sales
persons on his daily trip to service the retailers. Researcher asked the retailers
about their uses of Pepsi merchandises and try to Asses the market share the
Pepsi’s different brands. This is very important point as it gave me an inside view
of the whole setup and further on during the planning of any of the promotions.
Researcher was aware of the limitations and strengths of the environment he
would be working in. The various methods and principles adopted are listed
below:

• Research Plan:

Date sources: sources of information are as follows:

(1) Primary sources

Who’s the primary source??

Consumers are the primary source.

(2) Secondary sources – Researcher collected secondary information from

magazines.

• Research Approach:

Researcher followed one approach to collect the information

(1) Survey – Researcher contacted the retailers in the market place to gather
the relevant information.

Number of Retailers contacted – 400 Retailers.

 ~ 46 ~

• Research instrument:

Researcher used questionnaire as his instrument for conducting the survey.

• Sampling Plan

(1) Sampling unit – Retailers

(2) Sampling procedure- Simple Random Sampling Procedure.

• Contact Method

Researcher personally contacted the retailers.

 ~ 47 ~

DATA ANALYSIS & FINDINGS

FIGURE 1

Out of Coca-Cola and Pepsi Beverages India Limited

whose GSB do you have ?

PBI
11%

Coca-Cola
14% PBI
Coca-Cola
Both
Both
5%
None
None
70%

 Out of the sample size which has been covered only 11 % of the shops
had Pepsi’s GSB’s vis a vis to 14 % of Coca-Cola’s GSB’s.

 14 % of the sample size had the GSB’s of both the major players of the
soft drink industry.

 70% of the sample size didn’t have any of the GSB’s displayed.
 ~ 48 ~

FIGURE 2

Ranking according to visibility - Pepsi ? Ranking according to visibility - Coca Cola ?

14% 13%

14% Rank 1 Rank 1

Rank 2 49% Rank 2
Rank 3 Rank 3
38%
72%

 72% of the shops having Pepsi GSB’s got the 1st rank according to their
visibility status on the other hand only 14% of the retailers got the rank 2nd
and 3rd each. This shows that retailers who got the GSB as display
material from the company are using them satisfyingly.

 49% of the shops having Coca-Cola GSB’s got the rank 1st according to
their visibility status on the other hand 38% of the retailers got the rank 2nd
and only 13% of the retailers got the rank 3rd. This shows that in
comparison to Coca-Cola, Pepsico.’s GSB are being used in more proper
way.
 ~ 49 ~

FIGURE 3

Out of Coca-Cola and Pepsi Beverages India Limited

whose DPS Board do you have ?

PBI
27%
PBI
Coca-Cola

Coca-Cola Both
None
8% None
62%
Both
3%

 Out of the sample size which has been covered 27 % of the shops had
Pepsi’s DPS Boards vis -a -vis to 8 % of Coca-Cola’s DPS’s.

 3 % of the sample size had the DPS Boards of both the major players of
the soft drink industry.

 62% of the sample size didn’t have any of the DPS Boards displayed.
 ~ 50 ~

FIGURE 4

Ranking according to visibility - Pepsi ? Ranking according to visibility - Coca Cola ?

0% 12%
18%

18%
Rank 1 Rank 1
Rank 2 Rank 2
Rank 3 Rank 3

70%
82%

 82% of the shops having Pepsico. DPS Boards got the rank 1st according
to their visibility status on the other hand 18% of the retailers got the
ranks 2nd and nobody got the 3rd. This shows that retailers who got the
DPS Boards as display material from the company are using them
satisfyingly.

 70% of the shops having Coca-Cola DPS Boards got the rank 1st
according to their visibility status on the other hand 18% of the retailers
got the rank 2nd and only 12% of the retailers got the rank 3rd. This shows
that in comparison to Coca-Cola, Pepsico.’s DPS Boards are being used
in far more satisfyingly.
 ~ 51 ~

FIGURE 5

Out of Coca-Cola and Pepsi Beverages India

Limited
Whose Refrigerator do you have ?

32
Own %
PBI
27%
PBI
Coca-Cola
Both
Both Own
11% Coca-Cola
30%

 Out of the sample size, which has been covered 32 % of the shops, had
Pepsi’s refrigerator vis a vis to 30 % of Coca-Cola’s refrigerator. This
shows that percentage distribution of the refrigerator is almost equal for
both the companies.

 11 % of the sample size had the refrigerator of both the major players of
the soft drink industry.

 27% of the sample size didn’t have any of the company’s refrigerators;
they are using their own refrigerators for the chilling purpose.
 ~ 52 ~

FIGURE 6

Ranking according to visibility - Pepsi ? Ranking according to visibility - Coca Cola ?

8% 0%

33%
24%
Rank 1 Rank 1
Rank 2 Rank 2
Rank 3 Rank 3

68% 67%

 68% of the shops having Pepsico. refrigerators got the rank 1st according
to their visibility status on the other hand only 24% of the retailers got the
ranks 2nd and 8% of the retailers got the rank 3rd. This shows that retailers
who got the refrigerators as display material from the company are not using
them satisfyingly.

 Only 33% of the shops having Coca-Cola refrigerators got the rank 1st
according to their visibility status on the other hand 67% of the retailers
got the rank 2nd and none of the retailers got the rank 3rd. This shows that
in comparison to Coca-Cola, Pepsico.’s refrigerators are being used in far
more proper way.
 ~ 53 ~

FIGURE 7

H o w m an y B ottles of P B I/ C oca-C o la do you have in

yo ur frid ge

P B I, 4260
4500
4000 Coc a-Cola, 3368
3500
3000
PBI
2500
Coc a-Cola
2000
1500
1000
500
0
PBI Coc a-Cola
 ~ 54 ~

FIGURE8

Availabity Comparision between Pepsi and Coca-Cola at

the Outlets - using Pepsi Merchandising
Asset

Coca-Cola
44% PBI
PBI Coca-Cola
56%

 the Pepsico.’s refrigerators 44% of the Coca-Cola bottles were found. This
shows that Pepsico.’s refrigerators are not being used to optimum by the
retailers in promoting Pepsico.’s products.
 ~ 55 ~

FIGURE 9

Reasons for not optimum use of Refrigerator / Ice Box

at outlets ?

Shortage
Shortage
13%
Other
Problem of the Problem of the Empty
36%
Empty bottle bottle
17% Irregularity of the Salesman

Other
Irregularity of the
Salesman
34%
 ~ 56 ~

FIGURE 10

Other Reasons for low optimum use of Pepsi's Assets

Others
11% Low Demand
Low Demand
promises from 34% Smaller Fridge
Unfulfilled
the Company
Representatives Unfulfilled promises from the
22% Company Representatives
Smaller Fridge Others
33%

 While giving the reasons for not using the Pepsico.’s

refrigerators 34% of the retailers blame it to the lack of regular
services from the company (irregularity of the salesman), 17%
of the retailers voted to the problem of the empty bottles of
Pepsi Beverages India, 13% voted for the shortage of the
different packing.

 Despite of all the above reasons a huge segment 36% blame it

to different other reasons for below optimum use of
 ~ 57 ~

refrigerators.

 Out of the 36% other major reasons low demand (33%) and
lesser capacity refrigerators (34%) got the maximum share.
 Despite of all the above there are even major number of

retailers who lame it to the unfulfilled promises from the

company professionals.

FIGURE 11

Approximate sale of the retailer

100
90
80
70
60
50
40
30
20
10
0
0.5 to 2 3 to 5 6 to 10 More Than 10
 ~ 58 ~

FIGURE 12

Approximate sale of the retailer

More Than 10 0.5 to 2

18% 8%

6 to 10 3 to 5
28% 46%

The sample size shows that maximum portion (around 46

%) of the retailers whose sale are between 3 to 5 crates daily and only 8 % are
the ones who are selling less that two crates.
 ~ 59 ~

FIGURE 13

How the retailler gets display material from the

company ?

70

60

50

40

30

20

10

0
Schemes Gift Sharing / Draft Other
 ~ 60 ~

FIGURE 14

How the retailler gets display material from the

company ?

Gift
40%
Sharing / Draft
21%

Other
Schemes 6%
33%

 The sample size gives us the brief idea about the pattern of
distribution of merchandising assets by the companies. Most of the
retailers (around 73%) are getting the display material through different
schemes or as the gifts.
 ~ 61 ~

FIGURE 15

Market Demand of different packings of Soft-Drinks

2lt
200ml
26%
30% 2lt
1lt
500ml
1lt 300ml
7% 200ml
300ml 500ml
23% 14%

 This gives us an indication, where the better prospects lies. In which

particular type of packing little innovation can do wonders. This provides
us with an idea where we should concentrate.

 The sample size shows that there is huge demand of 2lt pack (26%) and
200ml bottles (30%).

 300ml bottles with 23% shares the 3rd position and 500ml. Shares the 4th
position of the demand total demand with the market demand of 14%
 ~ 62 ~

FIGURE 16

Market Demand of Softdrink ( Cola )

500
400
Pepsi
300
Coca-Cola
200
Thums-up
100
S1
0
Pepsi Coca-Cola Thums-up
 ~ 63 ~

FIGURE 17

Market Demand of Softdrink ( Cola )

Thums-up
24%
Pepsi
39% Pepsi
Coca-Cola
Thums-up

Coca-Cola
37%

 Sample size shows the comparison between the market demands of each
of cola drink.

 Pepsi is on the top, shares the demand of 39% from the market.

 Coca-Cola seconds with the shares of the demand of 39% from the
market beating Thums up with the remaining 24%
 ~ 64 ~

FIGURE 18

Market Demand of Softdrink ( Orange )

290
280
270 Fanta, 285
260 Mirinda-O, 260
250 S1
240
Mirinda-O Fanta
 ~ 65 ~

FIGURE 19

Market Demand of Softdrink ( Orange )

Mirinda-O
48%
60%
Fanta
52%
40%

 Sample size shows the comparison between the market demands of each
of Orange drink.

 Mirinda and Fanta are almost head to head with 48% and 52% market
demand. Though Fanta is having 4% more share than Mirinda Orange.
 ~ 66 ~

FIGURE 20

Market Demand of Softdrink ( Lemon )

Sprite 7 Up
5% Mirinda-L
9%
27%

Mountain Dew
28%
Limca
31%
 ~ 67 ~

FIGURE 21

Market Demand of Softdrink ( Lemon )

1000
800
Limca, 865
600 Mountain Dew,
Mirinda-L, 735
400 770 Sprite, 235
200 7 Up, 123
S1
0
Mirinda-L Limca Mountain Sprite 7 Up
Dew

 Sample size shows the comparison between the market demands of each
of Lemon drinks available in the market

 Limca in the lemon flavour with the market demand share of 31% is
beating all the giants.

 Pepsi’s two products Mirinda Lemon and Mountain Dew together with the
market demand share of 55% are competing with the Limca.

 The new entrant to the market, Mountain Dew is gaining the market share
more dynamically than its competitor brands.

 Sprite and 7 up are lacking behind with just the share of 14%.
 ~ 68 ~

FIGURE 22

Market Demand of Softdrink ( Mango )

300

295 300

290 290
S1
285
Slice Mazza
 ~ 69 ~

FIGURE 23

Market Demand of Softdrink ( Mango )

Mazza, 290

Slice, 300

 Sample size shows the comparison between the market demands of each
of Mango drinks available in the market

 Slice and Mazza is almost head to head with 52% and 48% market
demand. Though Slice is having 4% more share than Mazza.
 ~ 70 ~

LIMITATION
Despite the possible efforts in conducting the research, there were
some unavoidable situations, which limited the scope of the project.

 Considering the population, the sample taken for present study seems
small and hence further investigation may be required.

 The sample taken for study was not of equal distribution so a

comparative study cannot be made.

 Some of the retailers were non-cooperative in giving information, which

hampered the actual calculation.

 Time available for research was very short so certain aspects have
been overlooked.

 Retailers were hesitant to provide the complete information due to fear

of misuse of information.

 Respondents may sometimes misinterpret the questions, leading to a

different answer.
 ~ 71 ~

RECOMMENDATIONS

1. Company should do something to meet its demand in the market.

Because there is an acute shortage of Pepsi 2 Lt party pack and tin
pack because of the shortage, Pepsi is not only loosing the present
market share but also providing way to the rivals. For this either
plant size can be expanded or some more production equipments
can be installed.

2. Since the market capacity is huge salesman needs time at every

retailer to satisfy him and tell him about the different products,
packaging, schemes etc. it’s quite difficult for him to visit every
shop on his route everyday. Therefore, there is necessity to divide
his route into two parts and increase the total number of routes.

3. Sometimes salesman for different routes keeps on changing very

frequently (in a very short period). This should be prohibited
because every sales man needs time to get adjusted to a particular
route and even to know all the shops on the route.

4. Salesman is working for 15 to 16 hours regularly during the peak

season at very low reimbursement, which may sometimes kill his
interest. Therefore there is a need of fixing up his

5. Company professions must not make the false promises about the
merchandising assets with the retailers. These retailers must get
the proper information and guidance about the company policies on
the merchandising assets. So that there must be no frustration
generated.
 ~ 72 ~

6. Though the GSB’s and DPS Boards are being used by the retailers
satisfyingly but still there is need of the guidance for the retailers.

7. Schemes should be transparent and made clear to the retaikers.

8. As maximum number of retailers are selling around 3 to 5 crates

daily. Our schemes should be revolving around this percentage
only. And while formatting the different schemes this should be kept
in mind.

9. For this salesman can be provided with some kind of guidance/

training, so that they can clear the queries of the customers about
the different schemes/ proposals

10. Retailer benefit schemes, which the company launches time by

time during the whole year, must be made clear to all the retailers.

11. Customers can be informed about the schemes through the

broachers. Broachers can be distributed to all the retailers for the
schemes that are being launched once in a year. And for the daily
schemes which get change on daily bases and which depends on
the stock availability providing details about the day's schemes/
after a paper/ pamphlet on different products can be sticked to the
delivery van signed by the TDM or ASM or anybody authorized. So
that every retailer if needed/ required can verify himself about the
daily schemes.

12. Company professionals should visit the field more regularly and
 ~ 73 ~

they must try to visit every retailer at least once in a month.

13. A proper trust and relationship building process is required with the
retailers, which need to be worked on.

14. Above figures shows the market demand comparison between the
different products of all the flavors available in the market. Which
show that we can gain market share through Pepsi. Mirinda- (O)
and Mountain Dew. So we should concentrate more in completing
the market demand of these products.

15. Above figures shows the market demand comparison between the
different packs available in the market. Which show that we can
gain market share through concentrating more on 2Lt. and 200ml.
pickings. So we should concentrate more in completing the market
demand of these packing

16. Other products and packing like Mirinda-L and 7 Up and 300 ml.
Whose demand is going down require proper attention and
strategy.
 ~ 74 ~

CONCLUSION

After conducting the research, Researcher found that there are two categories of
retailers. The first one is of those retailers, which just want to increase their
assets, for them the sale doesn’t matter according to them they can only
increase the sale if the company will invest in them or in their shops. These types
of retailers will only work for the company, which invest in them hugely. And if at
any moment they found company has lost or lowered their interest in them they
will again shift to other major player. Other kinds of retailers are those who are
more bothered about working hard and build their reputation in the market.
These types of retailers are using the merchandising assets to their optimum
level. And sometimes if they are unable to do so it’s because of the irregularity of
the salesman (when the salesman on the route gets changed) or because of the
shortage of the different products/packing.

There is a requirement of the company professionals to visit these retailers

continuously. So, that they can understand the market and suggest changes
accordingly. Despite of this, salesman and other company professionals who visit
 ~ 75 ~

these retailers must not do the false promises. Due to this retailers loose their
confidence in the company.

There is also the need of the transparent schemes and marketing mix that the
retailers can understand more properly.

QUESTIONNAIRE

Name of the SHOP ____________________ Tel No.

___________________________

ADDRESS
__________________________________________________________

1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?

A. PBI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

2 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE DPS BOARD DO YOU
HAVE?

A. PBI B COCA-COLA C BOTH D NONE

 ~ 76 ~

RANKING ACCORDING TO VISIBILITY?

1 2 3

3 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR DO YOU
HAVE?

A. PBI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

4 HOW MANY BOTTLES OF PBI DO YOU HAVE IN YOUR FRIDGE?

PBI _____________________ TOTAL _______________________

5 WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX TO ITS FULL
STRENGTH?

A. SHORTAGE B EMPTY PROBLEM

C IRREGULARITY OF THE SALESMAN D OTHER

6 APPROXIMATELY HOW MANY CRATES DO YOU SALE?

A. 0.5-2 B 3-5 C 6-10 D MORE THAN 10

 ~ 77 ~

7 HOW DO YOU GET THE DISPLAY MATERIAL FROM THE COMPANY?

a. SCHEMES B GIFT C SHARING / DRAFT D OTHER

8 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?

( ) 2 LT. ( ) 1 LT ( ) 500 ML ( ) 300 ML ( ) 200 ML

9 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?

A. ( ) PEPSI ( ) COCA-COLA ( ) THUMS-UP

B. ( ) MIRINDA-O ( ) FANTA

C. ( ) MIRINDA –L ( ) LIMCA ( ) MOUNTAIN-DEW ( ) SPRITE

( ) 7-UP

D. ( ) SLICE ( ) MAAZA
 ~ 78 ~

BIBLIOGRAPHY

Name of the books used for the reference and their authors.

1. Principles of Marketing - Kotler Philip

1. Research Methodology - Kothari C.R.

2. Market Research - Sharma D.D.

Websites Referred
http://www.pepsico.com

http://www.google.com

http://www.rkg.com

http://pepsizone.yahoo.com
 ~ 79 ~

MAGAZINES

4 PS
Time Education Magazine
Times of India

PRICE LIST
• 200 ML Rate-146/caret

• 300 ML Rate-192/caret

• 600 ML Rate-444/caret

• 600 ML(slice) Rate-456/caret

• 2000 ML Rate-369/pet

• 2000 ML(Miranda) Rate-324/pet

• Tatra (slice) Rate –218 /pet

• Aquafina Water Rate-103/Pet

 ~1~

EDS FORMAT

Status SIGNAGE
S Outlet Addres Contact Chan Glass VISI OYC ICE BOX
PBI/ Wall Paint DPS GSB
.No. Name s Person nel
CCX PBI CCX PBI CCX OWN PBI CCX PBI CCX PBI CCX PBI CCX PBI CCX