Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ON
“MARKET SHARE OF PEPSI”
SUBMITTED TO:
JAI BEVERAGES,BARI BRAHMANA,
JAMMU
Submitted In Partial Fulfilment Of The Requirements
Summer Training
H.P University
PREFACE
Theoretical knowledge without the practical exposure is of life value. Theoretical studies in
classroom are not sufficient to understand the functioning and nature of research. Thserefore
it becomes necessary to undergo any research project work. Practical project supplements the
theoretical studies i.e. it covers what is left uncovered in the classroom. It exposes a student
to invaluable pleasure of experiences.
I am very much thankful to the management of the “JAI BEVERAGES LTD” for giving me
an opportunity to do this project as a part of my MBA programme. The completion of this
project is a successful and satisfactory outcome of so many helping hands. I think it proper to
express my deep obligation to my advisers.
My special wishes and thanks shall always be for those who responded me
and extended their co-operation in preparing and collecting data by which this Project Report
has been smoothly conducted.
EXECUTIVE SUMMARY
The project was undertaken to study the market share of Pepsi in JAMMU area. The
population consists of all those retailers in the defined area who stock and sell relevant brands
With a view to find the market share of Pepsi in JAMMU area and to determine the most
The research study shows that the share of Pepsi is 43 percent as compared to that of Coke
The study revealed that Pepsi is able to sustain the tough competition from Coke.
Pepsi is one of the world's most famous brands much like its rival Coca Cola. Pepsi Cola was
originally called Brad's Drink after its creator, Caleb Bradham, a pharmacist from North
Carolina. Pepsi was a carbonated soft drink he created to serve his drugstore's customers. The
new name, Pepsi-Cola, was first used on August 28. The Pepsi logo is a simple globe with the
Pepsi colors in the background and the word Pepsi in the foreground. Pepsi has changed its
logo and its slogans a number of times since its introduction in 1898. The Pepsi slogans
through the years are listed below
• 1953-1961: Be Sociable
Food
Industry
Non-alcoholic beverage
Indra Nooyi
Key people
(Chairperson and CEO)
Pepsi
Diet Pepsi
Mountain Dew
AMP Energy
Aquafina
Sierra Mist
SoBe
Starbucks Frappuccino
Lipton Iced Tea
7up
Mirinda
Izze
Tropicana Products
Products Copella
Naked Juice
Gatorade
Propel Fitness Water
Quaker Oats Company
Lay's
Doritos
Cheetos
Kurkure
Fritos
Rold Gold
Ruffles
Tostitos
•
Company Perspectives:
Our Mission
Our mission is to be the world's premier consumer products company focused on convenient
foods and beverages. We seek to produce 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.
Our Vision
"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.
When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic
response convinced him that he had created a commercially viable product. For 20 years,
'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a
dilemma; the crucial decision he made turned out to be the wrong one and he was forced to
sell. But his successors fared no better and it was not until the end of the 1930s that Pepsi-
Cola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth
multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level
was almost entirely the result of its management style and the phenomenal success of its
television advertising.
Key Dates:
1898: Pharmacist Caleb D. Bradham begins selling a cola beverage called Pepsi-Cola.
1905: Bradham begins establishing a network of bottling franchises.
1923: Bradham's company goes bankrupt.
1928: Roy C. Megargel reorganizes the firm as the National Pepsi-Cola Company.
1931: Company again goes bankrupt and is resurrected by the president of Loft Inc., Charles
G. Guth.
1933: The size of Pepsi bottles is doubled, increasing sales dramatically.
1936: Pepsi-Cola Company becomes a subsidiary of Loft.
1939: First national radio advertising of the Pepsi brand.
1941: Loft and Pepsi-Cola merge, the new firm using the name Pepsi-Cola Company.
1964: Diet Pepsi debuts; Mountain Dew is acquired from Tip Corporation.
1965: Pepsi-Cola merges with Frito-Lay to form PepsiCo, Inc., with the two predecessors
becoming divisions.
1967: Frito-Lay introduces Doritos tortilla chips to the national U.S. market.
1977: PepsiCo acquires Taco Bell.
Marketing
A large advertisement made to resemble a Pepsi cup at the theme park, Nickelodeon Universe
inside the Mall of America. The first of many new designs of Pepsi cans which were released
in 2007.In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo
set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests
the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo
took great advantage of the campaign with television commercials reporting the test results to
the public..In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy.
By 2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that
"helped redefine promotion marketing."
In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included
more than thirty different backgrounds on each can, introducing a new background every
three weeks.
Celebrity endorsers
Like Coca-Cola, Pepsi and its associated beverages have had various celebrity endorsers and
continue to use them.
Celebrity Endorsements:
Pepsi Slice Mirinda Coke Thumsup
M.S Katrina Aasin Imran Akshay
Dhoni Kaif Khan Kumar
Ranbir Aishwary Sanjay
kapoor a Rai Dutt
Sachin Aamir
Tendulka Khan
r
Kareena
Kapoor
Slogans
• 1939: "Twice as Much for a Nickel"
• 1950: "More Bounce to the Ounce"
• 1967: "(Taste that beats the others cold) Pepsi Pours It On".
• 1969: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"
• 1984: "Pepsi. The Choice of a New Generation" (Commercial with Michael Jackson,
featuring Pepsi version of Billie Jean)
• 1990: "You got the right one Baby UH HUH" ( sung by Ray Charles for Diet Pepsi )
• 1996: "Pepsi:There's nothing official about it" (During the Wills World Cup(Cricket)
held in India/Pakistan/Srilanka)
• 1998: "Yeh Dil Mange More"(In Urdu meaning "My heart wants more")(Pakistan)
• 1999: "Ask for More"/"The Joy of Pepsi-Cola" (Commercial with Britney
Spears/Commercial with Mary J. Blige)
• 2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez & Beyoncé Knowles)
• 2006: "Why You Doggin' Me"/"Taste the one that's forever young" Commercial
featuring Mary J. Blige
• 2007: "More Happy"/"Taste the one that's forever young" (Michael Alexander)
• 2010:”Youngistaan WOW!
WEAKNESSES:
• Pepsi hard to inspire vision and direction for large global company.
• Not all PepsiCo products bear the company name
• PepsiCo is far away from leader Coca-cola in the international market - demand is highly
elastic.
OPPORTUNITY:
THREATS:
STRATEGIES:
The purpose of the strategy is to increase the EPS by 15% per annum and increase PepsiCo's
stock price. There are two ways to increase the EPS, first is to increase the income and
second to decrease the amount of stocks outstanding.
PepsiCo in India
PepsiCo gained entry to India in 1988 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. Others
claim that firstly Pepsi was banned from import in India, in 1970, for having refused to
release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the
market shortly afterwards.
These controversies are a reminder of "India's sometimes acrimonious relationship with huge
multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company
have "been major targets in part because they are well-known foreign companies that draw
plenty of attention."
In 2003, 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 The Coca-Cola Company, contained toxins, including
lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer, a
breakdown of the immune system and cause birth defects. Tested products included Coke,
Pepsi, 7 Up, Mirinda, Fanta, Thums Up, Limca, and Sprite.
CSE found that the Indian-produced Pepsi's soft drink products had 36 times the level of
pesticide residues permitted under European Union regulations; Coca Cola's 30 times.CSE
said it had tested the same products in the US and found no such residues. However, this was
the European standard for water, not for other drinks. No law bans the presence of pesticides
in drinks in India.
The Coca-Cola Company and PepsiCo angrily denied allegations that their products
manufactured in India contained toxin levels far above the norms permitted in the developed
world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and a
government-appointed committee, is now trying to develop the world's first pesticides
standards for soft drinks. Coke and PepsiCo opposed the move, arguing that lab tests aren't
reliable enough to detect minute traces of pesticides in complex drinks.
As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-
drink sales in India. PepsiCo has also been accused by the Puthussery panchayat in the
Palakkad district in Kerala, India, of practicing "water piracy" due to its role in exploitation
of ground water resources resulting in scarcity of drinking water for the panchayat's residents,
who have been pressuring the government to close down the PepsiCo unit in the village.
In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high
levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that
their drinks are safe for consumption and have published newspaper advertisements that say
pesticide levels in their products are less than those in other foods such as tea, fruit and dairy
products.
In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks,
was banned by the state government in 2006, but this was reversed by the Kerala High Court
merely a month later.Five other Indian states have announced partial bans on the drinks in
schools, colleges and hospitals.
Indra Nooyi Appointed As Pepsico CEO
Indra K Nooyi is all set to lead American cola giant PepsiCo with the board of the food and
beverage multinational on Monday electing the 50-year-old corporate wizard as the CEO to
succeed Steve Reinemund from October 1, 2006.
Putting a stamp of approval on her 12-year stint with the corporation, the Pepsico Board said
in a statement: "We are exceedingly fortunate to have a leader of Indra's calibre, vision and
experience to take the helm. She has been instrumental to PepsiCo's solid direction and
ongoing success and has the complete endorsement
and support of the board."
Reinemund, who will continue in the corporation as executive chairman and member of the
Board till his retirement till May 2007, said, "Indra's record of transforming PepsiCo speaks
for itself, and she has been an invaluable partner and ally throughout my time as CEO".On
his part, Reinemund, who has been with PepsiCo for 22 years, described it as "the toughest
and easiest decision of my life.""After 22 years with PepsiCo, more than five of them as
chairman and CEO, I have decided that my family is entitled to more time from me than the
responsibilities and obligations of continuing as PepsiCo's CEO requires and deserves," he
said.PepsiCo said Nooyi's current responsibilities will be divided between two of the
company's veterans. While Richard Goodman, 57, who is currently CFO of PepsiCo
International, will assume the position of CFO for the corporation, Hugh F Johnston, 44,
currently Senior VP, Transformation, has been promoted to the newly- created position of
executive vice president, operations, and will add global procurement and IT to his
responsibilities.
PepsiCo said Nooyi has directed the company's global strategy for over a decade and was the
primary architect of its restructuring, including the divestiture of its restaurants into the
success Brands, Inc., the spin-off and public offering of company-owned bottling operations
into anchor bottler Pepsi Bottling Group, acquiring Tropicana, and the merger with Quaker
Oats that brought the vital Quaker and Gatorade businesses to PepsiCo.Recently, Nooyi has
been driving critical cross-business initiatives to enhance operations and enable PepsiCo meet
the changing needs of consumers and retailers, the company said.Speaking on behalf of
PepsiCo's board of directors, presiding Director Robert E Allen said: "We have seen first
hand the difference that Indra has made on the business andthe people, and we look forward
to working even more closely with her to usher in the next generation of dramatic growth and
advancement that has been a hallmark of PepsiCo since its founding."
On her part, Nooyi described her elevation as a humbling experience. "I am humbled by the
opportunity to lead PepsiCo, and profoundly grateful to follow in the footsteps of Steve
Reinemund, Roger Enrico, Wayne Calloway and Don Kendall".
"Steve has steered the company to a strong and enviable position, and he will be a continuing
source of wisdom and perspective. I am equally fortunate to have amazing partners, not only
on the board and executive team, but in the 1,57,000 bright, talented colleagues around the
world who deliver the results every day and are as committed as I am to continue capturing
every growth opportunity," Nooyi said.
As CEO, Nooyi's leadership team of direct reports will include the company's division chiefs
- Michael D. White, PepsiCo vice chairman and chairman and CEO of PepsiCoInternational,
who is also a member of the board of directors; Albert P Carey, President and CEO of Frito-
Lay North America; John C Compton, President and CEO of Quaker-Tropicana- Gatorade;
Thomas Greco, President of PepsiCo Sales; and Dawn Hudson, President and CEO of Pepsi-
Cola North Americ."
PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP,
Nimbooz, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi,
hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks -
Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana
Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add
to the diverse range of brands.
Foods
PepsiCo’s food division, Frito-Lay, is the leader in the branded salty snack market and all
Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips,
Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar
brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted
snack options enhance the healthful choices available to 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.
JAI BEVERAGES PVT. LTD.
Jai beverages was born in 1999 as a pepsi India franchise in
jammu.The unit was established with an initial investment of approx.US$
6.4 million.The plant boasts of ultra modern facilities at the plant.The state
and especially the economy of the region have witnessed an upsurge since
the inception of the plant.The unit has already contributed to over 650
direct and indirect employment opportunities in the state and the number is
growing steadily overtime.The unit has thus significantly affected the level
of industralisation of the state.
The year was 1999 and pepsi company in India was very
eager to improve its extremely poor market share (less than 3%) in the
state of jammu and Kashmir.That was when it approached the soft drink
maestros of India-the jaipuria family, and Mr.jaipuria in particular, for
starting a plant in j&k.In spite of all odds,the noninductive climate in the
state for a new business venture, he took a bold step and went ahead with
accepting the challenge and taking the franchise in the name of his elder
son-Mr. Anuraag jaipuria, and jai beverages pvt. Ltd
From the day of the decision, to this day in 2001, there has
been no looking back.In this short span time, the company has been
formed, sprawling compound of erstwhile M/S Hindustan Ltd. Taken over
from a supportive SIDCO,a prestigious unit in J&K,after an initial
investment of rupees 27.1 crores, has been established with full backing of
the ministery of industries (J&K government) and an ultra modern plant in
full swing.The boiler used is oil-fired, with a 33m high chimney and an
effluent treatment plant which realeases all the effluent water after full
treatment at very reasonable and much under the pollution board’s
maximum acceptable BOD and COD levels,In fact, work in on to stop all
the treated effluent from going out and instead to utilize this water internally
for horticulture.In otherwords,the water is being put back into the earth to
retain the water table.Further,work has been done to grow more trees
within the premises,in line with the universal endeavour of making the earth
green.
GENERAL
MANAGER
MANAGER MANAGER
MANAGER (TDM)
AREA AREA
EXECUTIVE EXECUTIVE
CORDINATOR CORDINATOR
(ADC) (ADC)
CUSTOMER
CUSTOMER
EXECUTIVES
EXECUTIVES
PRODUCT PROFILE OF THE ORGANIZATION
Pepsi Products available in Kathua Market
SLICE
(TETRA-
PACK) RS. 12 NA NA NA NA NA
AQUAFINA NA NA NA RS. 15 NA NA
LEHAR NA NA NA NA
SODA
MARKETING MIX OF PEPSI:-
1). PRODUCT :-
PEPSI.
7UP.
MOUNTAIN DEW.
MIRINDA (ORANGE).
MIRINDA (LEMON).
SLICE.
AQUAFINA.
LEHAR SODA.
I LITRE (PET).
500 ML (PET).
330 ML CAN.
300 ML (RGB).
250 ML (RGB).
200 ML (RGB).
3). PRICE:-
Price is governed by many factors like cost, Govt. Excise, Sales Tax and Market. Here
price is at with the competitors.
4). PROMOTION :-
Promotion is the aspect of selling and advertising or communicating the benefit of the
RESEARCH OBJECTIVES
• To find the market share of Pepsi
• To increase market share the of Pepsi on the other brands in Kathua (J&K)
POPULATION
The population consists of all those retailers in the defined area who stock and sell all
relevant brands of cold drinks i.e. Pepsi & Coke.
POPULATION ELEMENT
It is the unit of study of research. All those retailers, which qualify for
the above criteria and being covered in the survey, form population
element.
The reason to choose the instrument was that the survey was proposed towards the retailers of
the cold drinks. Most of them are illiterate or less educated. The instrument helped us to
easily convey the message and was also convenient while travelling in the field.
RETAILER SURVEY ON CONSUMPTION OF COLD
DRINKS
YES NO
76% 24%
Interpretation:-
YES NO
80% 20%
Interpretation:
We find that 80% of RETAILERS get all the BRANDS of PEPSI and
20% of RETAILERS don`t get all the BRANDS of PEPSI.
Q3). Do you get all the SCHEMES on PEPSI REGULARLY?
YES NO
48% 52%
Interpretation:-
35% 60% 5%
Interpretation:-
YES NO
90% 10%
Interpretation:-
Interpretation:-
72% 23% 5%
Interpretation:-
We find that 72% of RETAILERS are HIGHLY SATISFIED, 23% OF RETAILERS are
SATISFIED and 5% of RETAILERS are DISSATISFIED.
Q8). Does the working of MERCHANT help in increasing your SALES or
PROFIT?
YES NO
82% 18%
Interpretation:-
We find that 82% of RETAILERS got profit and increase in sale and
18%
YES NO
89% 11%
Interpretation:-
YES NO
58% 42%
Interpretation:-
We find that 58% of RETAILERS says that got increase in sale and
profit and 42% of RETAILERS says that not increase in sale and
profit.
Q11). Does the company solve your Grievances?
YES NO
22% 78%
Interpretation:-
YES NO
92% 8%
Interpretation:-